Industrywide Issues

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    Rover Pipeline: Growing the Pie, or Stealing Slices from Others?

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada–starting flowing natural gas through a portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Since then, Phase 1A of the pipeline has steadily increased its throughput and now flows over 700 million cubic feet per day (MMcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH. But where does that gas come from? Have a bunch of drillers suddenly flipped a switch and turned on new wells to fill that capacity? Well, to some degree that has happened. There is certainly new gas finding its way through Rover–but most of the gas flowing through Rover comes at the expense of flowing through other pipelines. Several other pipelines in the region are giving up some of their gas according to the experts at BTU Analytics. Which pipelines? Most of the gas flowing through Rover likely comes from gas that would have flowed through the Texas Eastern Transmission Company (TETCO) pipeline, says BTU Analytics. In addition, REX (Rockies Express Pipeline) and Dominion Pipeline have also lost some business to Rover. Here’s how Rover has changed the supply/demand landscape over the past three weeks…
    Read More “Rover Pipeline: Growing the Pie, or Stealing Slices from Others?”

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    Congress Needs to Fix State Vetoes of Federal Pipeline Projects

    As we have reported, history was made last Friday when the Federal Energy Regulatory Commission (FERC) overruled the New York Dept. of Environmental Conservation’s (DEC) denial of a water permit for Millennium Pipeline’s tiny 7.8 mile pipeline spur from the main Millennium Pipeline to a natural gas power plant under construction in Orange County, NY (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC eventually denied the water permit, but not before taking 19 months to do it. According to federal law, states have a maximum 12 months in which to make a federal Clean Water Act water permit decision. FERC said NY took too long, and therefore waived the permit, allowing Millennium to proceed with construction of the pipeline. The federal law governing all of this was written to give states a voice, but not a veto, of federal pipeline projects. Whether or not a project gets built is NOT up to the individual states–it is up to FERC and (if necessary) the U.S. Court of Appeals. The law specifically foresaw one state denying a project that another state needs and wants. However, rogue states like socialist NY are pushing the bounds of law by denying pipeline projects authorized by FERC. So what if NY rejects a pipeline, denying a water permit, but does so within the 12 month time period? What then? The legal beagles at the Blank Rome law firm address that issue on their environmental blog. Mike Krancer (former PA DEP Secretary), Fred Lowther and Margaret Anne Hill write that it’s time for Congress to act to clarify the law and ensure NY (and other states) cannot block federally approved pipeline projects…
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    Hey Broome County: Enviros Love NG Advantage’s Virtual Pipeline

    As we reported in August, a Broome County, NY judge ruled that the Town of Fenton (Binghamton area) Planning Board did not take a hard enough look at environmental and traffic issues related to their approval of NG Advantage’s plan to construct a facility in the town to compress and load natural gas onto tractor trailers for delivery to regional customers who desperately need the gas–what is called a “virtual pipeline” (see Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again). The judge’s ruling delays the project for months, at least. NG must now resubmit the project for approval by the Fenton Planning Board. Before doing that, NG must first conduct a full environmental impact study and an aquifer study. Even with environmental studies, don’t expect the locals, who appear to have very closed minds, to accept the outcome (see 2nd Approval for Virtual Pipeline in Broome County Not Assured). Some (many?) of the locals have been unduly influenced by charlatans who swoop into town and talk about “bomb trucks” and other nonsense, and then leave town once the locals are hot and bothered and agitated. These out-of-towners are professional agitators–paid by Big Green to do what they do. In a bid to counter the lies and smears pedaled by these people, NG is spreading the news that REAL environmentally-conscious people support NG’s virtual pipeline operations. For example, a dairy farm cooperative in Vermont and a sustainable lettuce and caviar farm in eastern New York are both NG customers and sing the praises of clean-burning, sustainable natural gas deliveries to their operations. Yes, those who actually care about the environment support NG Advantage and virtual pipelines…
    Read More “Hey Broome County: Enviros Love NG Advantage’s Virtual Pipeline”

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    Select Energy, Rockwater Energy Merger Delayed 2 Months

    Rockwater Energy Solutions is a “leading provider of comprehensive water management solutions to the North American unconventional oil and gas industry” and the only company that provides complementary chemistry products and expertise in connection with its water solutions. Rockwater operates in the Marcellus/Utica region, among other shale plays. Select Energy Services is a billion dollar oilfield services company with three main divisions: water services, rentals, and wellsite completions. They operate in every major shale play in the country, including the Marcellus/Utica. In July the two companies announced they are merging in an all stock swap deal (see Select Energy, Rockwater Merge to Create Huge Shale Water Provider). They originally thought the merger would be completed by Nov. 1st, however, the date has now been pushed back to Dec. 31st…
    Read More “Select Energy, Rockwater Energy Merger Delayed 2 Months”

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    Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule

    Earth moving has begun for a compressor station in Columbia County. (Williams Partners)

    Well that didn’t take long! Yesterday MDN brought you the fantastic news that the Federal Energy Regulatory Commission (FERC) had granted Williams a certificate/go-ahead to begin construction on Atlantic Sunrise, 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 (see FERC Greenlights Construction of Atlantic Sunrise Pipeline). FERC issued their permission to begin construction last Friday. Based on a previous Williams statement, we expected construction to begin tomorrow, on Sept. 20th. However, as soon as Williams had the certificate in their hands, they began construction–LAST FRIDAY. Where? Williams fired up bulldozers at two locations–one in Wyoming County, the other in Columbia County (both in northeast PA), to clear land for two new compressor stations they will build as part of the project. Yesterday both Williams AND Cabot Oil & Gas issued the same press release to announce construction has begun. Interesting that Cabot issued the release too, showing just how important this project is to Cabot’s future (and to their stock price)…
    Read More “Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule”

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    FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that (will eventually) run from PA, WV and eastern OH through OH into Michigan and on to Canada–began flowing natural gas through a large portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). In the past three weeks, Phase 1A of the pipeline has steadily increased its throughput and now flows over 700 million cubic feet per day (MMcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH. However, it could flow more, if the Federal Energy Regulatory Commission (FERC) would lift its considerable boot off Rover’s neck and let them finish Phase 1B pipeline work in eastern Ohio to feed more gas to the main part of the pipeline. The problem is that Rover had early missteps, the most serious of which spilled 2 million gallons of non-toxic drilling mud in a swamp near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). An investigation by the Ohio Environmental Protection Agency (OEPA) found the presence of diesel fuel in the drilling mud, which means the mud wasn’t so non-toxic after all (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). Rover believes sabotage may have been the cause. Since April, FERC has blocked all new underground HDD work for the Rover project. Rover has asked (begged, pleaded) FERC, several times, for permission to restart the HDD work–at least in a few select locations. In August, FERC issued eight conditions before they would agree to lifting the HDD ban (see FERC Issues Rover 8 Commandments to Restart Horizontal Drilling). Rover says they have met all of those conditions. However, the OEPA says they have not. Last week OEPA asked FERC to continue blocking HDD activity until they (OEPA) are satisfied (see Rover Pipeline Still Battling Ohio EPA, Asks FERC to Lift HDD Ban). Rover fired off a letter to FERC that says OEPA’s public statements are opposite of their private statements with Rover. In other words, OEPA is lying. Who will FERC listen to? Now we know. They’re listening to Rover. Yesterday FERC lifted the ban on HDD for nine key locations–NOT including the Tuscarawas River site. FERC says they are still investigating that spill. FERC said, in lifting the HDD ban, that “Rover has demonstrated sufficient progress on the required rehabilitation and restoration of the areas affected by the inadvertent release and drilling mud contamination” and that the company is following FERC’s 8 Commandments. We’re pretty sure yesterday’s FERC decision won’t make the OEPA happy…
    Read More “FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes”

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    PA House Getting Ready to Cave on Severance Tax? Say it Ain’t So!

    It’s funny how mainstream media–and liberal Democrats–can turn on a dime. It was just a few days ago we read an AP story endlessly regurgitated across PA about how the PA budget fight had turned “ugly” and “personal” (see Pennsylvania’s ugly budget fight gets personal and regional). The story began this way: “The feel-good bipartisan spirit that Democratic Gov. Tom Wolf tried to instill last year in Pennsylvania’s Capitol is gone, stomped to bits in an increasingly ugly budget stalemate. Now, the Capitol seems gripped by a feud that is perhaps less partisan than it is regional and personal.” And now, a few days later, everyone is all-of-a-sudden happy and feeling better. It’s all bipartisan butterflies and unicorns popping up in Harrisburg. Why the change? Because now there are whispers that House Republicans may cave on adopting a Marcellus-killing severance tax. That has the antis, and the Dems (often one and the same) all giddy and feelin’ good. Is there any truth to the rumors?…
    Read More “PA House Getting Ready to Cave on Severance Tax? Say it Ain’t So!”

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    EIA Sept Drilling Report: Marcellus/Utica Production Hits New High

    MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR), yesterday. The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Last month EIA combined the Marcellus and Utica plays into a category they call Appalachia–a big change in the report (see EIA Makes Big Changes to Monthly Drilling Report, Combines M-U). What does the latest report forecast for the coming month? EIA says that natural gas production across all seven major shale regions will jump another 788 million cubic feet per day (MMcf/d) to a record high of 59.7 billion cubic feet per day (Bcf/d), with nearly half of the increase next month coming from one region–Appalachia. Here’s the latest edition of our favorite monthly report, with some analysis…
    Read More “EIA Sept Drilling Report: Marcellus/Utica Production Hits New High”

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    Constitution, NFG Pipes to Seek FERC Relief from NY DEC Tyranny

    Yesterday we told that you history has been made–the Federal Energy Regulatory Commission (FERC) has broken the back of the New York Dept. of Environmental Conservation (DEC) by overturning the DEC’s decision to block a short pipeline Millennium wants to build to a power plant in Orange County (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC has also blocked federally-approved pipeline projects in two other cases–the Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas (a Williams project), and the Northern Access Pipeline, a $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY, to carry Marcellus gas northward (a National Fuel Gas Company project). Given Millennium’s success in having FERC overrule NY DEC, one would think these other two projects would also file requests with FERC for the same thing. According to Reuters, NFG already has filed such a request, and Williams is about to…
    Read More “Constitution, NFG Pipes to Seek FERC Relief from NY DEC Tyranny”

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    Sierra Club Radicals Use FL Court Case to Challenge 2 M-U Pipelines

    In August, the D.C. Court of Appeals ruled in a case that may have long-term, very negative consequences for the oil and gas industry related to pipeline development (see DC Court of Appeals Legislates New Law re FERC & Global Warming). The profoundly litigious, anti-fossil fuel radicals of the Sierra Club previously filed a lawsuit against the Federal Energy Regulatory Commission (FERC) blaming FERC for not considering mythical man-made global warming as it conducted a review of three pipelines in the southeast. The Sierra Club is known for filing frivolous lawsuit after frivolous lawsuit. This is just one in a long line. The Southeast Market Pipelines Project is an umbrella project for three natural gas pipelines in Alabama, Georgia, and Florida. The linchpin of the project is the Sabal Trail pipeline, which travels from Tallapoosa County in eastern Alabama, across southwestern Georgia, and down to Osceola County, Florida, just south of Orlando (nearly 500 miles), feeding gas-fired power plants in the region. The Sierra Club antis said the three projects together didn’t take into consideration an increase in carbon and methane that would result from the three projects getting approved, and that said carbon and methane will contribute to man-made global warming. The D.C. Court of Appeals agreed and instructed FERC to reconsider its environmental assessment of the three projects–vacating an approval of the main part of the project, the Sabal Trail pipeline. Just one teeny tiny problem (for the antis): all three pipelines–Sabal Trail, Hillabee Expansion and Florida Southeast Connection–are up and running. This decision likely will not shut them down. But the decision does have a big impact on projects not yet built. Drunk on their earlier success, yesterday the Sierra Club filed two requests (demands?) with FERC requesting the agency redo their already-done environmental impact statements for Dominion’s $5 billion Atlantic Coast Pipeline from WV through VA and into NC, and for EQT’s $3.5 billion Mountain Valley Pipeline, from WV into VA. The Sierra Club says the Sabal Trail decision is all they need to force FERC into redoing the EIS’–to force FERC to consider mythical man-made global warming…
    Read More “Sierra Club Radicals Use FL Court Case to Challenge 2 M-U Pipelines”

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    EIA: Gas & Oil Will Dominate Energy Mix for Next 20+ Years

    Last week our favorite government agency, the U.S. Energy Information Administration (EIA), released its annual “International Energy Outlook 2017” (full copy below). What does the report show? EIA predicts energy consumption is set to increase 28% from 2015 levels by 2040–in a little over the next 20 years. To meet this huge uptick in energy, EIA predicts fossil fuel use–led by natural gas and oil–will continue to account for about 77% of energy consumption through 2040. So much for the renewable nirvana future we’re always just a year or two away from (according to Al Gore). Fossil fuels will remain the #1 fuel of choice by the world for the next generation, and almost certainly the generation after that, and the one after that. Do you now see why drilling for oil and gas in shale is so vital to the future of not only our country, but the world? According to EIA, most of the growth in energy consumption (and fossil fuels) will come from China and India. Here’s the lowdown on what’s just around the corner…
    Read More “EIA: Gas & Oil Will Dominate Energy Mix for Next 20+ Years”

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    History Made! FERC Overrules NY DEC on Millennium Pipe Permit

    Finally the Federal Energy Regulatory Commission (FERC) has had enough shenanigans from the corrupted New York Dept. of Environmental Conservation (DEC). In a historic, precedent-setting decision, on Friday FERC overruled DEC’s denial of a water permit for Millennium Pipeline’s tiny 7.8 mile pipeline spur from the main Millennium Pipeline to a natural gas power plant under construction in Orange County, NY. On Wednesday, Aug. 30, the DEC issued a denial letter to FERC and Millennium. In it, they claim that FERC’s review of the power plant project (that the pipeline will feed) is deficient based on a recently-decided court case about a pipeline project in Florida (see Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline). The radicalized DEC used the Florida case as an excuse to refuse stream crossing permits for the Millennium Pipeline project–claiming FERC had not considered long-term effects of mythical man-made global warming that would come from the power plant if the Millennium pipeline is connected to and feeds the plant. The DEC decision was a naked attempt to grab power not given to it under federal law. FERC said ENOUGH, and ruled on Friday the DEC had taken too long (over one year) in dithering with a decision on the Millennium pipeline request. A recent ruling by the U.S. Court of Appeals for the District of Columbia said FERC has the power and authority to overrule the DEC when they take longer than one year to grant permits (see DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay). So FERC just exercised their federal, court-approved authority and smashed the DEC into the ground. LOVE IT! Of course the humiliated DEC spit and sputtered and said they will likely sue…
    Read More “History Made! FERC Overrules NY DEC on Millennium Pipe Permit”

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    FERC Greenlights Construction of Atlantic Sunrise Pipeline

    Bad news for the Sisters of the Corn and the radicals at Lancaster Against Pipelines. On Friday the Federal Energy Regulatory Commission (FERC) granted Williams permission to begin construction on Atlantic Sunrise, a $3 billion, 198-mile 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. Last week the Sierra Club and a mish mash of other nutball groups begged FERC to delay issuing an order that Williams can commence with construction, claiming FERC’s delay in considering a rehearing delayed a lawsuit and the lawsuit hasn’t had enough time to work it’s way through the court system (see Big Green Begs FERC to Delay Construction of Atlantic Sunrise Pipe). As was expected, Big Green’s begging and pleading fell on deaf ears. Williams previously said they plan to begin construction on Sept. 20th–this Wednesday. Ladies and gentleman, start your (backhoe) engines! Sisters of the Corn (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe), you may want to pick up your wooden park benches and the flower trestle–what you call a “chapel”–in the middle of your corn field. Here comes the Atlantic Sunrise!…
    Read More “FERC Greenlights Construction of Atlantic Sunrise Pipeline”

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    Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U

    TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. The original open season last year was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). The plan needs a bevy of regulatory approvals, the main one being the Canadian National Energy Board (NEB). The clock is ticking and time is running out. In hearings before the NEB last week, the Canadian Association of Petroleum Producers pleaded their case that the plan get approved. Without it, western Canadian gas simply can’t compete with cheap, abundant Marcellus/Utica Shale gas flowing north. In somewhat dramatic terms, Canadian drillers claimed the “future of western Canada’s natural gas industry could depend on pipeline company TransCanada winning regulatory approval” of their lowball plan…
    Read More “Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U”

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    19 Radicals Arrested for Blocking DEQ Building in Richmond, Va.

    As MDN told you two weeks ago, radicals from the Chesapeake Climate Action Network (CCAN) said they would stage “massive” protests at several Virginia Department of Environmental Quality offices last week to protest against two Marcellus/Utica pipeline projects: the $5 billion Atlantic Coast Pipeline and $3.5 billion Mountain Valley Pipeline. Both projects have large segments crossing Virginia (see Radical CCAN to Protest VA DEQ Against Marcellus/Utica Pipelines). CCAN said up to 1,000 people would turn up to behave badly at DEQ office sites–using sit-ins, “prayer circles” and sidewalk “rallies.” The so-called “massive” rallies where held–and it was bust. At the main DEQ office in Richmond, “dozens” turned out to protest the pipelines. If it weren’t for the signs and sloppy dress code, you wouldn’t have known they where there–they would have blended in with the crowd. In the end, 19 of the radicals were arrested for blocking an entrance to the building where the DEQ has its office. The news account of the “arrest” of these radicals sounds more like a tea party than a crime scene. One radical said she though the police “were just great”…
    Read More “19 Radicals Arrested for Blocking DEQ Building in Richmond, Va.”

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    Big Green Mouthpiece StateImpact PA Gets $653K Propaganda Grant

    It certainly isn’t journalism. It’s one-sided, anti-fossil fuel advocacy. And it’s profoundly biased. StateImpact Pennsylvania, a Public Broadcasting initiative that’s funded, in part, with taxpayer money, is about to expand by adding another three propagandists to the three it has now. Joy. Four PBS organizations, led by WITF in Harrisburg, PA, is receiving a $652,902 grant from the Corporation for Public Broadcasting (CPB) to expand its propaganda operation and write more anti-drilling, anti-pipeline stories. Stories that are one-sided. Aren’t you glad your taxpayer dollars go to fund this “reporting?” They’ll throw in a little global warming hysteria, just to spice it up…
    Read More “Big Green Mouthpiece StateImpact PA Gets $653K Propaganda Grant”