Industrywide Issues

  • |

    Prominent Enviro Proposes “Climate Dictatorship” based on China

    You often read on MDN of our disdain for “radical” environmentalists and the “Big Green” organizations that do so much harm to our economy, our liberties and our way of life. Occasionally we’ll get an email asking, “What do you mean by radicals?” or “Who is Big Green?” On a regional scale we’re talking about THE Delaware Riverkeeper, various Mountain Keeper organizations, [fill in the blank] organizations against pipelines. On a national scale it’s the odious and evil Sierra Club, Food & Water Watch, National Resources Defense Council (NRDC) and a variety of others. Behind the curtain, pulling strings by donating large sums of money, are people like Mamma Teresa Heinz Kerry (Heinz Endowment), billionaire leftie Tom Styer, the Rockefellers, etc. What interests us is most is that at their core–whether local flakes or California billionaires–is an irrational hatred of fossil fuels. The mythology that mankind is catastrophically causing the earth to warm is their rallying cry–and their “righteous” cause is to stop it, by any means necessary. Since their pathetic ideology cannot and will not gain traction with enough people in a free society to enforce the changes they want on the entire population, these people often tip over into fascism and/or Communism. In their heart of hearts they seek to overthrow free democracies. How do we know? One of them, a European, has just admitted it–for all the world to see. Jørgen Randers, professor of “climate strategy” at BI Norwegian Business School–a mainstream climate guy–is calling for a “climate dictatorship,” along the lines of the Chinese government. You know, do it right–like the people responsible for the Tiananmen Square massacre. That’s how professor Randers wants to handle those of us who are “climate deniers”…
    Read More “Prominent Enviro Proposes “Climate Dictatorship” based on China”

  • | | | | | | |

    OH EPA Director Manipulates Atty General to Sue Rover Pipeline

    The director of the Ohio Environmental Protection Agency (EPA), Craig Butler, continues to go off the rails with a major grudge against Rover Pipeline (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). Using his position and the power of his agency, Butler has now convinced Ohio’s wishy washy Republican Attorney General, Mike DeWine, to sue Rover “for polluting state waters while constructing a natural gas pipeline across Ohio.” Which is, of course, nonsense. Yes there have been some spills of drilling mud. It happens. Yes, one of them was totally unacceptable (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). However, using the mighty power of the entire state to sue a private company because Butler has an ego trip and wants to shake down the Rover project for millions is unacceptable. It’s time to fire Craig Butler. Below is the AG DeWine’s brief statement, a copy of the sham lawsuit DeWine filed late last week, and a response from Energy Transfer Partners, the builder of Rover…
    Read More “OH EPA Director Manipulates Atty General to Sue Rover Pipeline”

  • | | | | | | | |

    First Atlantic Sunrise Pipe Gets Buried on Nun Property

    We find this story amusing. A group of left-leaning Catholic nuns in Lancaster County, PA, whipped up by radical environmentalists with ties to Big Green organizations, got it into their heads to try and block a very-safe natural gas pipeline from crossing their property–the Atlantic Sunrise Pipeline being built by Williams. The Sisters call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn, because they put a couple of wooden park benches in a cornfield on their property (leased to a local farmer), christening it a “chapel” and claiming because the pipeline would run through the middle of their so-called chapel, building a pipeline is a violation of freedom of religion. In September a federal judge tossed the lawsuit (see Fed Judge Tosses Lancaster Nuns’ Freedom of Religion Lawsuit re ASP). However, the Sisters and their bought-and-paid-for-by-Big-Green lawyers have appealed it. The Sisters are hypocrites. They heat an old folks home they operate on the very same property–with natural gas! Talk about chutzpah. Over the past few weeks, mostly non-local Big Green protesters have showed up at the property as work began. So far 29 of the wackier protesters have been arrested trying to block work on the pipeline (see Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested and 6 More Arrested for Blocking Pipe Work at Lancaster Nun Property). Williams wisely chose the cornfield site owned by the Sisters as the first place to dig and lay pipeline. Within a few days (perhaps already), that very location will be the first portion of Atlantic Sunrise to be laid in the ground and covered up. Williams isn’t stupid. Get the location with the most resistance done first and the rest is a piece of cake. Meanwhile, Big Green lawyers are screaming for court intervention, even as the pipes are lowered into the trench (we just can’t wipe the smile off our face)…
    Read More “First Atlantic Sunrise Pipe Gets Buried on Nun Property”

  • | | | |

    PA Landowners “Furious” Over Royalties, Backdoor Lease Changes

    An off-hand comment by a Pennsylvania Gov. Wolf staffer has landowners in northeast PA hopping mad–and with good reason. Speaking on the topic of PA landowners getting screwed out of royalty payments by drillers deducting inflated post-production costs (sometimes sending royalty statements where landowners OWE the drillers money!), Wolf deputy policy director Sam Robinson said this: “I think there was a crescendo of that kind of claim in 2015 to 2016…There’s been real movement in a positive direction on that issue.” Really? Not according to Bradford County Commissioner Doug McLinko and National Association of Royalty Owners (NARO) PA president Jackie Root. Not only is the issue not resolved, but the industry, under the prompting of EQT, snuck through an “environmental rider” in the recently passed-and-signed-into-law Fiscal Code bill (called Section 1610) that gives drillers a back door to reactivate old, non-producing wells after they have not been producing (and the lease considered terminated) under certain conditions (see PA Republican Senate Changes Lease Terms for Landowners). Far from moving in a “positive direction” as Robinson stated, landowners in PA are “furious” according to McLinko, and feel as if they have been “thrown under the bus” according to Root…
    Read More “PA Landowners “Furious” Over Royalties, Backdoor Lease Changes”

  • | | | |

    Corp Raider Jana Partners Admits Defeat Ahead of EQT/Rice Vote

    The guy who runs the investment firm Jana Partners, Barry Rosenstein, is a corporate raider. He invests millions in a company he’s targeted in order to get one or two people elected to the board of directors. Those people then agitate and force the company to lay off hundreds or thousands of employees, and sell off assets, in a bid to make the stock price jump. When the price does jump, corporate raiders like Rosenstein then sell their shares, making a profit on the new/higher price (buy low sell high). It may be legal, but we consider it immoral. In June, EQT, one of the biggest drillers in the Marcellus/Utica, announced a deal to buyout and merge in Rice Energy, another sizable M-U driller (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). A few weeks later Jana targeted EQT in an attempt to stop the deal (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Jana believes it could make a whole lot more money if the deal doesn’t go through, and instead if EQT splits itself in two–one half a drilling company, the other half a pipeline company (firing a bunch of people along the way). So Jana went on a smear campaign, making all sorts of wild accusations against EQT, including calling EQT management’s compensation structure “perverse,” and accusing the company of using “deceptive” maps of EQT and Rice acreage positions (see Corp Raider Continues to Trash Talk EQT/Rice Merger, Vote Set Nov 9). All the trash-talking and bullying didn’t worked. The deal will happen–this week–and Jana is now officially throwing in the towel. They will still vote against the deal with their shares, but they have withdrawn their proxy fight to enlist enough other shares to vote down the deal…
    Read More “Corp Raider Jana Partners Admits Defeat Ahead of EQT/Rice Vote”

  • | | | | | | | | |

    NFG 3Q17: Delayed Northern Access Pipe No Closer to Resolution

    Last week National Fuel Gas Company, headquartered in Western New York State with drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline, issued its fourth quarter (everyone else’s third quarter) 2017 update. In the accompanying analyst phone call, CEO Ronald Tanski blamed the delay of the Northern Access Pipeline project (delayed by the NY Dept. of Environmental Conservation) for lower earnings than the company would have otherwise realized. Thanks, business UNfriendly NY! You may recall in July NFG filed a lawsuit against the DEC for arbitrarily rejecting the project (see Northern Access Pipeline Court Case Further Threatens NY DEC). On the analyst call, Tanski said the case, filed in the Second Circuit Court of Appeals (in NY), will hold oral arguments on Nov. 16th. Tanski also said it’s “anyone’s guess” when NFG will get an answer about the project–either from the lawsuit or the Federal Energy Regulatory Commission (FERC). On the drilling front, Seneca Resources produced 40.4 billion cubic feet equivalent (Bcfe) last quarter, up a tiny 1% from the same quarter a year ago. After hedging, Seneca got $2.91 per thousand cubic feet (Mcf) for their gas–not too shabby. Below is the full update for NFG for last quarter (remember they also have a huge utility business, in addition to drilling and pipelines), along with excerpts from the analyst call and the latest slide deck…
    Read More “NFG 3Q17: Delayed Northern Access Pipe No Closer to Resolution”

  • | | | |

    Still Lots of Marcellus/Utica Jobs to Fill in Southwest PA

    Although there is still quite a bit less drilling than there was in 2014-2015, for a number of reasons, there are plenty of jobs to be had in the Marcellus/Utica Shale–especially in southwest PA. Companies that do work in the industry held a job fair last Thursday night at the Deer Lakes High School, looking for truck drivers, roustabouts and construction workers. Seems like a week doesn’t go by now that we don’t read about a job fair somewhere in the Pittsburgh region. Yes, there may be less drilling, but there’s still plenty of jobs to be filled, especially with Shell’s cracker plant construction ramping up. Below is news about last week’s job fair–who was looking, and what they’re willing to pay…
    Read More “Still Lots of Marcellus/Utica Jobs to Fill in Southwest PA”

  • | | | |

    Scranton Antis Get Political Revenge for Gas-Fired Power Plant

    Recently the profoundly biased mouthpiece for Big Green groups, PBS StateImpact Pennsylvania, ran an article about the political fallout around the construction of what will be Pennsylvania’s largest natural gas-fired electric generating plant, located near Scranton. Invenergy is currently building the Lackawanna Energy Center, a 1,480 megawatt plant in Jessup, PA that will cost “well over $1 billion” according to an exclusive MDN source working on the project. The PA Dept. of Environmental Protection (DEP) approved the plant in December 2015 (see PA DEP Approves Jessup, PA Marcellus Gas Electric Plant). The locals in Jessup approved the project in March 2016 (see Jessup Borough Final Approval for PA’s Largest NatGas Power Plant). The plant will use up to 240 million cubic feet (MMcf) of natural gas per day–provided by nearby Cabot Oil & Gas operations (see Cabot Cuts Deal to Supply PA’s Largest NatGas-Fired Electric Plant). It’s a win/win all the way around–except for NIMBY’s who live in Jessup and don’t want the plant in their “backyard.” The NIMBY’s couldn’t stop it, so they’ve done the next best thing. They mounted aggressive political campaigns to oust local town officials who approved the project. Unfortunately they were successful. What it means is that when the project is done, sometime in 2018, it will have to contend with local officials who are hostile to natural gas and toward the project–they can’t stop it, but they can hassle it. Such is the messy nature of our democracy…
    Read More “Scranton Antis Get Political Revenge for Gas-Fired Power Plant”

  • | | | |

    DOJ Ends Probes into Chesapeake Royalty Practices, Land Deals

    In September 2016, Chesapeake Energy filed disclosure forms with the Securities and Exchange Commission which says the U.S. Dept. of Justice (DOJ), a number of states, and even the U.S. Postal Service have served the company with subpoenas for information (see Everybody Just Subpoenaed Chesapeake Energy for Everything). The filing indicated that Chesapeake had received DOJ, U.S. Postal Service and state subpoenas “seeking information on our royalty payment practices. In addition, we have received a DOJ subpoena seeking information on our accounting methodology for the acquisition and classification of oil and gas properties and related matters.” An enterprising investigative reporter with Reuters noticed Chesapeake recently filed another disclosure form with the SEC–to say that the DOJ has now ended what was a three-year probe into the company’s royalty payment and land purchase practices–ended without taking any action…
    Read More “DOJ Ends Probes into Chesapeake Royalty Practices, Land Deals”

  • | | | | |

    FERC Clears 1 Bcf/d Rayne Xpress Pipe to Begin Service

    In January of this year, the Federal Energy Regulatory Commission (FERC) voted to approve and issue a certificate to Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects (see FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects). The two projects work together to move Marcellus/Utica gas all the way to the Gulf Coast. The Leach XPress project involves construction of approximately 160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle, flowing 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name). Rayne XPress works hand in glove with Leach. There is an existing natgas pipeline from Leach, KY all the way to the Louisiana Gulf Coast. That pipeline is called the Rayne, for Rayne, LA. The Rayne Xpress project beefs up the Rayne pipeline with new compressor stations to add an additional 1 Bcf per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast. Both projects are scheduled to go online this month. Leach XPress isn’t ready yet, but Rayne XPress is. Yesterday FERC granted Columbia Pipeline (now owned by TransCanada) permission to begin flowing gas along Rayne–Marcellus/Utica gas–all the way to the Gulf Coast…
    Read More “FERC Clears 1 Bcf/d Rayne Xpress Pipe to Begin Service”

  • | | | | | | | | |

    Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas

    Exciting! We have a brand new pipeline project to tell you about–located in the Greater Philadelphia area. Although the project is new, the pipeline is old–already in the ground. Talen Energy, birthed in June 2015 from a combination between PPL Energy Supply and certain assets of Riverstone Holdings, is one of the largest competitive energy and power generation companies in North America. Talen’s core business is building and operating electric generating power plants. One of the assets Talen inherited in the merger is an 84-mile pipeline called the Interstate Energy Company which runs from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook. Talen announced yesterday they’ve sold the Interstate Energy Company (the pipeline) to Adelphia Gateway, a subsidiary of New Jersey Resources, for $189 million. The northern 34 miles of the pipeline was converted to flow natural gas back in 1996. The southern 50 miles currently flows oil, but Adelphia (NJ Resources) announced yesterday they will convert the oil portion of the pipeline to instead flow natural gas. The bottom line is that a wide swath of Greater Philly is about to get a new source of clean-burning, abundant fracked PA natural gas…
    Read More “Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas”

  • | | | | | | | |

    Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction

    The odious Sierra Club is at it again. Using what appears to be endless supplies of money from people like the Rockefellers, the Sierra Club, along with a mishmash of other radical environmental groups, filed an emergency motion in federal court on Monday, asking the court to stop any further work on the Atlantic Sunrise Pipeline. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Williams, the company building/owning the project, broke ground in September (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Since that time 29 radicals in two different protests have been arrested for blocking construction in Lancaster County (see Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested and 6 More Arrested for Blocking Pipe Work at Lancaster Nun Property). However, the work continues–at a rapid pace. Williams knows the longer they take, the more likely antis will find a way to slow or stop the construction. On Monday the Sierra Clubbers filed their latest “throw everything against the wall to see if something sticks” frivolous lawsuit to try and stop it–to give their other (numerous) frivolous lawsuits a chance to work their way through the court system, in hopes something, anything will work to stop the project…
    Read More “Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction”

  • | | | | | |

    PA DEP Keeps Up Pressure on Mariner East 2 Pipe in Lebanon County

    The Pennsylvania Dept. of Environmental Protection (DEP) continues its quest to put Mariner East 2 (ME2) Pipeline construction under a microscope. Two days ago MDN told you that the DEP had issued a Notice of Violation (NOV) for ME2 work in Lebanon County, PA, for spilling LESS THAN 1 gallon of non-toxic drilling mud (see PA DEP Shuts Down ME2 Drilling in Lebanon, PA for 1 Gal Mud Spill). Because it was the second spill at that location (the first being ~50 gallons), DEP shut down horizontal directional drilling at the Snitz Creek site. The DEP is back, riding ME2 for all they’re worth, with another NOV in Lebanon County. This one is because the DEP “observed sediment flowing into an unnamed tributary of Killinger Creek in South Londonderry Township.” If a body of water is large enough to be called a creek (something that runs year-round), it gets named. If a body of water isn’t even that big, it’s called an unnamed tributary–a body of water that may or may not flow year-round. We call it a drainage ditch. At any rate, DEP says Sunoco Logistics and their contractor building the pipeline in that area woulda/shoulda/coulda stopped a little dirt from washing down that drainage ditch if they had only used “best practices for controlling erosion.” Here’s the latest view under the microscope…
    Read More “PA DEP Keeps Up Pressure on Mariner East 2 Pipe in Lebanon County”

  • | |

    US Senate Votes to Confirm Final 2 FERC Commissioners

    In July, President Trump nominateed Kevin McIntyre, co-leader of the global Energy Practice at the Jones Day law firm, as the fifth (and final) FERC commissioner (see Pres. Trump Finally Nominates Kevin McIntyre to FERC, as Chairman). At that time, Trump also signaled he will make McIntyre chairman of the commission. Previously to that, Trump had nominated Richard Glick–a Chuck Schumer Democrat pick. McIntyre and Glick are the final two Commission members, rounding out a full compliment of five. Trump had previously nominated (later confirmed and now serving) Neil Chatterjee and Rob Powelson. It took the swamp dwellers in the Senate from July until November, but yesterday afternoon the Senate finally confirmed McIntyre and Glick. As soon as they are sworn in, McIntyre will take over the Chairman role from Chatterjee who has been serving in that role as a placeholder (doing a good job, we might add). One of the key issues ahead for all five commissioners is what to do about DOE Sec. Rick Perry’s “save coal and nuke energy” plan. Two of Trump’s picks, Chatterjee and Powelson, already disagree on what to do about Perry’s proposal (see Trump’s FERC Commissioners Disagree on Grid Reliability Plan). Here’s how it went down with the Senate vote to approve McIntyre and Glick…
    Read More “US Senate Votes to Confirm Final 2 FERC Commissioners”

  • | | | | | |

    WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline

    Hold on or you might get whiplash. In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit for the Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA (see WV DEP Grants Mountain Valley Pipeline Water Crossing Permit). In June, a group of profoundly radical “environmental” organizations (Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network) filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit against the WVDEP for doing their job issuing the permit (see Radicals File Lawsuit Against WV DEP for Approving MV Pipeline). Because of the pressure of that lawsuit, the WVDEP caved and reversed their decision in September, rescinding (called “vacating”) the permit for MVP (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). The WVDEP said they will “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” Just two weeks ago the 4th U.S. Circuit Court of Appeals upheld WVDEP’s decision and granted the agency’s motion to invalidate the previous certificate they granted the project (see Court Backs WVDEP Move to Cancel Permits for Mountain Valley Pipe). Yesterday, in yet another 180 degree about face, WVDEP announced it has “lifted the suspension” of the MVP stormwater permit–and that the agency has decided to waive the permit, MVP has no need to get it before beginning construction. It appears newly-minted Gov. Jim Justice, still in his first year, put a branding iron to the backside of WVDEP. Hold on to your cowboy hat! MVP is on the way to getting built in the Mountain State…
    Read More “WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline”

  • | | | | |

    Corp Raider Supports EQT/Rice Merger, but Lawsuit Still Looms

    In something of a good omen ahead of a vote on Nov. 9 by shareholders of EQT and Rice Energy to approve a merger, one of two EQT-shareholding corporate raiders, D.E. Shaw, supports the merger. In point of fact, Shaw has not opposed the merger since it was announced in June. Shaw’s “issue” has been that the merged EQT/Rice should immediately split itself in two–into upstream (drilling) and midstream (pipelines). Shaw’s pressure seems to be one of the (main?) reasons why EQT moved up the timing to consider such a split (see Under Pressure, EQT Moves Up Timeline to Explore Splitting Co.). Last week EQT CEO Steve Schlotterbeck all but confirmed the company will split in two after a special committee formed to explore that option makes its final recommendation (see EQT CEO Signals Company Likely to Split in Two After Rice Merger). Evil corporate raider Jana Partners is still opposed to the merger and is fighting it tooth and nail. Jana may have some help. A flurry of lawsuits have been filed by shareholders opposing the merger–most of them going nowhere. However, one of the lawsuits, filed in Allegheny County Court, will go before a judge three days before the Nov. 9 vote. That lawsuit requests an emergency injunction against the vote. It’s possible the county judge could block the vote, giving Jana more time to whip up opposition…
    Read More “Corp Raider Supports EQT/Rice Merger, but Lawsuit Still Looms”