Industrywide Issues

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    NJ Radical Organization Sues FERC in Bid to Stop PennEast Pipeline

    PennEast Pipeline is a $1 billion, 120-mile primarily 36-inch natural gas pipeline that will stretch from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The pipeline is an important conduit to move gas from the prolific gas fields of northeastern PA to markets in southeast PA and New Jersey. From the beginning of the project there have been a collection of so-called environmental organizations opposing it–including THE Delaware Riverkeeper, NJ Sierra Club, and the NJ Conservation Foundation. All radical groups, far far out of the mainstream. They also share something else besides an irrational hatred of fossil fuels–they’re part of a conspiracy to defeat PennEast funded by the William Penn Foundation. William Penn funds the aforementioned groups, as well as buying their own “media” in news outlets by funding StateImpact Pennsylvania and a news site called NJ Spotlight. William Penn sits in the background, pretending to be apart and aloof (to protect their IRS non-profit status) while pulling the strings and directing the opposition. Why the IRS turns a blind eye, we can’t say. At any rate, William Penn pulled another string this week–prompting their serfs at the NJ Conservation Foundation to file a lawsuit against the Federal Energy Regulatory Commission (FERC). The cockamamie claim is that IF FERC approves PennEast, the pipeline will then be able to invoke eminent domain to allow it to enter properties and complete route mapping for the pipeline. Right now some hardened antis who live along the route refuse to allow PennEast to step one foot on their property. So NJ Conservation Foundation has filed a lawsuit (copy below) to prevent FERC from issuing a final certificate for PennEast because PennEast will then gain the right of eminent domain. The lawsuit claims PennEast using eminent domain to build the pipeline would be an improper “taking” of private property under the Constitution. The only problem (for the William Penn-backed NJ Conservation Foundation) is that no “taking” has actually happened until FERC approves the project. That is, the lawsuit anticipates a harm that hasn’t happened. We expect that little fact will not escape the judge’s notice and that the lawsuit will be tossed in short order…
    Read More “NJ Radical Organization Sues FERC in Bid to Stop PennEast Pipeline”

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    Federal Court Clarifies Ohio Law for Calculating Gas Royalties

    A month ago MDN brought you the news that the U.S. District Court in Akron, OH had made a major ruling that affects all Utica landowners and drillers (see Federal Court Says Chesapeake Royalty Deductions Allowed in Ohio). The case, known as Lutz v. Chesapeake Appalachia, is about whether or not drillers (Chesapeake in this case) are allowed to deduct certain post-production costs from landowner royalty checks. The Ohio Supremes were asked to decide whether Ohio follows the “at the well” rule, which permits the deduction of post-production costs, or if the state follows the “marketable product” rule, which limits the deduction of post-production costs under certain circumstances. The Supremes refused to tackle the ultimate issue, which is: What does “at the well” really mean? How is it defined? Instead, the Supremes bounced the issue back to the U.S. District Court in Akron for further clarification. The federal court defined what is meant by “at the well.” The court’s decision means that Chesapeake Energy (and by extension other drillers) CAN deduct post-production expenses from landowner royalty checks–at least in certain instances. We spotted an explanation of the case and the decision by the Akron court from our friends at powerhouse energy law firm BakerHostetler. They do a great job putting the ruling in language we laypeople can understand…
    Read More “Federal Court Clarifies Ohio Law for Calculating Gas Royalties”

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    Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling

    On Monday MDN brought you the news that Captain Ahab, er, a, Ohio EPA director Craig Butler, had demanded Rover Pipeline stop all horizontal directional drilling (HDD) work now under way in the state because another (tiny, 200 gallon) drilling mud spill happened on November 16th (see Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop). Butler sent a letter to Rover and has also sent it to the Federal Energy Regulatory Commission (FERC) in yet another attempt to get FERC to halt work on the Rover project. Yesterday Rover thumbed its nose at Butler and instead asked FERC for permission to not only continue all current HDD work, but to begin new HDD work at several more locations in Ohio. Moby-Dick strikes back. Take that, Captain Ahab!…
    Read More “Rover Ignores Shrill Ohio EPA, Asks FERC to Continue HDD Drilling”

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    PA Supreme Court Hears Arguments in EQT Wastewater Leak Case

    Buckle up while we explain the background for this story. In October 2014, the DEP fined EQT a whopping $4.53 million for a leaky wastewater impoundment in Tioga County, PA (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). While EQT did not say there wasn’t a problem with leaks at the site, they did say the way the DEP calculated the fine is unreasonable and arbitrary. In fact, EQT says the DEP levied the fine and took EQT to court because a few weeks prior EQT had sued the DEP over a different matter–that is, sour grapes. EQT appealed the fine and the case all the way to the PA Supreme Court. In December 2015, the high court handed EQT a “procedural victory” by saying EQT has a point about the manner in which the DEP is calculating the fine (see PA Supreme Court Gives EQT “Procedural Victory” in $4.5M Fine Case). The Supreme Court sent the case back to a lower court, PA Commonwealth Court, for follow up work, and in January 2017, a three-judge panel ruled that the method the DEP currently uses to assess fines–by how many days pollution lingers, instead of by how many days the initial release of pollution lasted–is not legal nor common sense (see EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine). The judges said such a method in fining, “would result in potentially limitless continuing violations.” Under the old way of calculating fines, the DEP was considering upping the fine on EQT to an insane $157 million. Calculating it under the new way will mean a fine of around $120,000. Not long after that ruling, the Environmental Hearing Board, a special “court” set up to hear appeals of DEP decisions, decided to reduce the original $4.5 million fine down to $1.1 million (see PA Hearing Board Reduces EQT Fine from $4.5M to $1.1M). We thought that would be the end of it. But no! Both the DEP and EQT appealed the matter back up to the PA Supreme Court and yesterday the Supremes heard the case once again…
    Read More “PA Supreme Court Hears Arguments in EQT Wastewater Leak Case”

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    How Low Will They Go? RINOs/Dems Decrease PA Sev Tax Bill to 1.5%

    We’re not sure when this happened, but the dreadful severance tax bill in the Pennsylvania House, House Bill (HB) 1401 went from being a 3.2% tax to now a 1.5% tax on Marcellus production. Even with the lower rate, as we pointed out in a post yesterday, liberal Democrats are already voicing disgust and laying blame in anticipation that the bill will not pass (see Ray of Hope in PA Severance Tax Debate: Lib Dems Attack M-U). We have yet more evidence along those lines. An editorial by John Baer, a lib Dem “columnist” for the Philadelphia Daily News says he smells something “fishy” about the current debate over HB 1401. Baer thinks the bill is going nowhere fast and is nothing more than a fundraiser, to get both sides of the debate charged up and flooding Harrisburg with big bucks to fund political campaigns…
    Read More “How Low Will They Go? RINOs/Dems Decrease PA Sev Tax Bill to 1.5%”

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    Survey Indicates O&G Investing in WV More Attractive than PA or OH

    Each year (for the 11th year running) the Canadian-based Fraser Institute surveys petroleum industry executives and managers (333 of them for 2017) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? The Global Petroleum Survey (full copy below), tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. The rankings for this year are interesting and illustrative that politicians’ words and regulatory environment have a direct bearing on where, and how much, drilling companies are willing to spend. No money spent, no drilling. The barriers to spending in a given geography include: high tax rates, costly regulatory schemes, uncertainty over environmental regulations and the interpretation and administration of regulations governing the petroleum industry, and security threats. Only one state in the Marcellus/Utica ranked in the Top 10 “most attractive” jurisdictions for oil and gas investment–West Virginia…
    Read More “Survey Indicates O&G Investing in WV More Attractive than PA or OH”

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    TransCanada Says FERC Approval for Mountaineer XPress May Slip

    In July 2017, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for both the Mountaineer XPress and Gulf XPress projects (see FERC Issues Favorable Final EIS for Mountaineer/Gulf XPress Pipes). Both projects are part of Columbia Pipeline Group (now owned by TransCanada), expansions of the Columbia Pipeline system. A favorable EIS means it’s a foregone conclusion that FERC will issue a certificate for the project to proceed–at some point. Mountaineer XPress includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia. Gulf XPress consists of constructing seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. So far FERC has not given these two important Marcellus/Utica projects the final go-ahead. During TransCanada’s annual investor day webcast yesterday, Stan Chapman, president of TransCanada’s US natural gas pipelines business told investors (and the public) that although they had hoped for FERC approval by the end of this year, it’s now likely the approval will “slip into January”…
    Read More “TransCanada Says FERC Approval for Mountaineer XPress May Slip”

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    ME2 Construction Plan Near Philly Changed, Antis Still Not Happy

    Why are we not surprised that antis are NEVER happy. EVER. Sunoco Logistics Partners has, after experiencing problems using underground horizontal direction drilling (HDD) at a couple of locations near Philadelphia while building the Mariner East 2 NGL pipeline, decided to abandon HDD and instead switch to another method to get the pipeline installed. Even with the change in methodology, antis are still fussing and moaning. The only outcome that will make them “happy” is for Sunoco to abandon building the pipeline, which isn’t going to happen. Even if Sunoco did quit building ME2, we doubt the antis would really be happy. Have you ever noticed they’re perpetual sourpusses?…
    Read More “ME2 Construction Plan Near Philly Changed, Antis Still Not Happy”

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    CELDF Ballot Measure Seeks to Ban Utica Shale in All of Ohio

    The ultra-radical group from Pennsylvania called the Community Environmental Legal Defense Fund (CELDF) is devoted to stirring up anarchy and lawlessness, not only in Pennsylvania but elsewhere, like Ohio. CELDF has launched a campaign to amend the Ohio State Constitution. Two CELDF ballot initiatives (full text below) would amend the Constitution to make it legal for local communities to usurp the state’s role in regulating oil and gas. We’ve written plenty about the CELDF, which is behind a number of bizarre lawsuits like the one claiming that an ecosystem is a “person” with rights (see CELDF Loses Case to Represent Ecosystem – Turtles Disappointed). One of the CELDF Ohio ballot initiatives would give ecosystems standing as people. Yeah, out there. CELDF hasn’t been able to get these kinds of ballot measures passed in Youngstown. They’ve tried and failed six times (see Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time). If they can’t get it passed once in a single municipality, what makes them think it will pass statewide? Who knows?! They obviously have money to burn and will do so in an effort to pass these two horrible amendments to the State constitution. The net effect of passing them would be to shut down Utica Shale drilling in many locations, and block pipelines in most locations. Passing these initiatives would bring chaos and disaster to the state. We seriously doubt Ohio’s politicians will let it happen–but then we just suffered through eight years of Barack Hussein Obama and a Congress that refused to make him obey the law. So anything can happen, which is why we’re raising the alarm. The unfortunate news is that Ohio’s Attorney General, a RINO, has “certified” both ballot initiatives. What that means is that if the nutters from CELDF get at least 305,591 signatures, the two initiatives will go on the ballot next November. Are there at least 305,591 whack jobs in the Buckeye State? We’re about to find out…
    Read More “CELDF Ballot Measure Seeks to Ban Utica Shale in All of Ohio”

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    4-Wk FREE Training Program Helps Unemployed Get M-U Pipeline Jobs

    If you are unemployed–particularly if you once worked in the coal industry–and you’re interested in getting your foot in the door of a rewarding job in the Marcellus/Utica industry, LISTEN UP! For those who live in southwestern PA and eastern OH, the Washington Greene County Job Training Agency and the Gas Technology Institute have teamed up to provide a FREE 4-week training program just for you (details here). Called “From Black to Blue,” the program includes classroom and hands-on training so you will understand how the natural gas industry works, with an emphasis on natgas utilities and the pipeline industry. Starting salaries for pipeline-related jobs often exceed $50,000 per year, and eventually you may make in excess of $100,000 per year. These are awesome jobs, and this is an awesome opportunity to get trained for it. The first round of classes start Nov. 30 and Jan. 8 in Freeport, PA. Training in Ohio begins Jan. 15 in St. Clairsville. Below are the details, along with an application for the program. DO NOT DELAY, fill it out today and send it in…
    Read More “4-Wk FREE Training Program Helps Unemployed Get M-U Pipeline Jobs”

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    Monroeville Seismic Testing Ordinance Court Case Settled

    Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance is meant to hassle Huntley & Huntley (H&H), which wants to conduct seismic testing in two rural areas of the municipality. In October, the contractor hired to do the seismic work for H&H, Geokinetics, took Monroeville Council to court over their punitive seismic ordinance (see Monroeville Seismic Testing Ordinance Challenged in Court). In the complaint, Geokinetics said, “Monroeville’s intransigence is not motivated by any legitimate concerns for the health and safety of its citizens, but rather by its council’s concerns about November elections.” The elections have come and gone and the hostile-to-shale Monroeville Council has settled the court case with Geokinetics. And yes, seismic testing will now begin!…
    Read More “Monroeville Seismic Testing Ordinance Court Case Settled”

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    Ray of Hope in PA Severance Tax Debate: Lib Dems Attack M-U

    MDN has closely followed the effort to pass a dreadful bill in Pennsylvania known as House Bill (HB) 1401, which would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state. Last week, just ahead of the Thanksgiving holiday, the House debated the bill for two days–then left town “abruptly” without taking any further action (see Update on PA Severance Tax Bill – More Progress, House Leaves Town). What happens now? Mainstream media is doing its best to put on a brave face that the bill is inevitable (see Final Push to Tax PA Drillers & Give Money to Philly Teachers). However, we’ve spotted more than one article in which the liberal Democrats who advocate for this bill are complaining about oil and gas “lobbying” being done in Harrisburg–blaming the big, bad Marcellus industry for continuing to block the bill. We take that as a very good sign–that the lib Dems are moaning and complaining. If they thought they had a prayer of a chance in passing 1401, they wouldn’t lash out in frustration as (for example) PA Rep. Vitali is now doing–lib Dem from the Philadelphia area. Nor would lib Dem newspapers like the Delaware County Daily Times run an “editorial” blaming Republicans playing politics for refusing to do what “everyone knows” should be done–pass a severance tax. These are a sure signs the lib Dems think they’ve lost and will not get the disastrous HB 1401 bill passed. Which makes us break out in a broad smile…
    Read More “Ray of Hope in PA Severance Tax Debate: Lib Dems Attack M-U”

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    PA Awards 5 “Alternative Fuel” Projects $1.1M – All Fossil Fuels

    Yesterday Pennsylvania Gov. Tom Wolf (liberal Democrat) issued a press release to take credit for/crow about handing out another $1 million of taxpayer money. This time the money is part of the state’s Alternative Fuel Incentive Grants (AFIG) program–a program aimed at replacing gasoline and diesel fuel. At least replacing a little bit of it–a token gesture. The state issued grants totaling more than $1.1 million in their effort to replace fossil fuels as the fuel that powers vehicles. And what “alternative” will replace those nasty fossil fuels? What clean-burning, good-for-the-environment option did PA deign to fund for over $1 million? Was the money used to purchase new electric charging stations for Chevy Volts, Nissan Leafs, and Teslas? Nope. The superior option to replace those nasty fossil fuels is…other fossil fuels! The grants will buy buses that run on propane, and build compressed natural gas (CNG) refueling stations for vehicles that run on CNG. No electric outlets in sight. By using propane and CNG, Wolf says PA will replace “hundreds of thousands of gallons of fuel” (meaning gasoline and diesel), making PA’s air cleaner. We think it’s kind of funny that Wolf’s enviro left hates natural gas, yet Wolf calls it clean and green and hands out money to make it more widely available…
    Read More “PA Awards 5 “Alternative Fuel” Projects $1.1M – All Fossil Fuels”

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    Status Report for 10 Vital Marcellus/Utica Pipeline Projects

    There are a number of important pipeline projects, key to moving Marcellus/Utica gas either out of our region, or to places in our region that urgently need it. Some projects we’ve been writing about for years–like the stalled Constitution Pipeline from Susquehanna County, PA into New York State. Others are relatively recent, like the Valley Lateral Pipeline, a short pipeline to feed a power plant being built in Orange County, NY. Some projects like PennEast Pipeline are not yet fully approved by the Federal Energy Regulatory Commission (FERC), and now face an uphill battle in New Jersey where an ultralib just got elected governor–saying he’ll do his best to hassle the project. What we need is a scorecard! What’s the status of all these important projects? Fortunately the sharp writers at E&E News (Energy & Environment Publishing) has just issued such a scorecard, chronicling 10 important, we’d call them vital, pipeline projects in the East: Constitution, Northern Access, Valley Lateral, PennEast, Atlantic Sunrise, NEXUS, Rover, Mountain Valley, Atlantic Coast, and Sabal Trail. Here’s a status report for each project…
    Read More “Status Report for 10 Vital Marcellus/Utica Pipeline Projects”

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    Michelle Hook: NatGas Missionary in Hostile Territory (New York)

    We live in a different world here in New York State–MDN’s beloved, lifelong home state. We suppose it’s like living in East Germany just after The Wall was built. Our wall is not physical but political. Even so, it’s just as real. Our state has become something of a socialist/Communist dictatorship. Our Constitutional property rights have been stripped away. Some private companies are actively opposed and frustrated by our governor, who then turns around and doles out taxpayer money to other private companies who are his cronies. We have no shale drilling, and no prospect of it until Cuomo is voted out of office. He’s even taken to stopping pipelines. Fortunately some pipelines, like the Millennium, were built before Cuomo caught the green fever. However, if you try to expand existing pipelines, say by running a 7.8 mile spur to an electric power generating plant that’s almost built, Cuomo will try and stop you. He’s like a hostile war lord in a third-world country. A tinpot dictator. Operating a pipeline in such a climate is not easy. It brings to mind stories of missionaries who put their own lives at risk to travel to hostile lands to bring religion to the heathen–whoops, to the indigenous population. One such pipeline missionary operating in New York is Michelle Hook, director of public relations for the Millennium Pipeline Company. How does Michelle do it, without going crazy?…
    Read More “Michelle Hook: NatGas Missionary in Hostile Territory (New York)”

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    Fed Court Grants Green, OH Request to Stop NEXUS Pipe Construction

    Who says you can’t buy a court decision–at least a temporary one? Back in May MDN told you about the antis running the City of Green, Ohio hellbent on stopping the NEXUS Pipeline, all of it (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). Green City Council voted to use $100,000 of taxpayer money to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, was the first major pipeline project to get approved after the Federal Energy Regulatory Commission (FERC) once again had a quorum (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Green’s high-priced lawyers filed their lawsuit in the 6th U.S. Circuit Court of Appeals, requesting an emergency stay blocking construction. Late last week a three-judge panel voted 2-1 in favor of Green’s request for an emergency stay, which temporarily blocks further construction of an 8-mile segment of the NEXUS Pipeline in the vicinity of Green (but not anywhere else). The judges believe Green’s lawsuit is likely to prevail in court–hence stop any construction for now around Green. The big problem, from our limited legal understanding, is that the underlying lawsuit filed by Green challenges the Ohio EPA’s decision to grant water crossing permits for the ENTIRE 257-mile pipeline through Ohio. If Green prevails in that case, construction on the entire pipeline (as it passes through Ohio) is stopped–not just an 8-mile segment around the pipeline-phobic Green…
    Read More “Fed Court Grants Green, OH Request to Stop NEXUS Pipe Construction”