Industrywide Issues

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    Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop

    In September MDN told you about Craig Butler, director of the Ohio Environmental Protection Agency (OEPA), that Bulter had gone off the rails on a power trip, claiming OEPA has the power to regulate the federally regulated Rover Pipeline project (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). Butler is fining Rover for a string of some major, mostly minor drilling mud spills related to underground horizontal directional drilling (HDD). Earlier this month Butler fleeced the Ohio Attorney General into suing Rover (see OH EPA Director Manipulates Atty General to Sue Rover Pipeline). Like Captain Ahab obsessed with Moby-Dick, Butler continues his quest to stop Rover. Butler’s latest attempt is to “request” (i.e. demand) Rover stop all HDD work now under way because another drilling mud spill happened on November 16th. The latest spill (called an “inadvertent return”) was 200 gallons and ended up in the Black Fork Mohican River in Ashland County. For new MDN readers: drilling mud is bentonite clay–the same stuff used to make kitty litter, toothpaste and cosmetics. It’s nontoxic and perfect safe for the environment–unless there’s a lot of it, and then it can smother critters like salamanders and fish. But honestly, 200 gallons of it is NOTHING. 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 all Rover HDD work…
    Read More “Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop”

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    New Gas-Fired Power Plant Announced for Tioga County, PA

    Energy Solutions Consortium, based in Buffalo, NY, has been trying to build a number of gas-fired electric plant projects in West Virginia for years (see Big News: 3 More Marcellus-Powered Electric Plants Coming to WV and WV Builder Tells PSC Power Plant Can Burn Methane AND Ethane). However, the regulatory environment in WV creeps along, like molasses, and none of the projects are even under construction–yet. WV’s own Secretary of Commerce, Woody Thrasher, recently said WV is downright unfriendly to electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). Meanwhile, Pennsylvania is building new Marcellus-fired electric plants left and right. Perhaps noticing the difference in regulatory climates, Energy Solutions has decided to try a project in PA–in Tioga County (about 2.5 hours from Buffalo). The $500 million project will be called Tioga County Power–a 680 megawatt plant capable of powering 430,000 homes, fed by yummy Marcellus Shale gas produced in PA…
    Read More “New Gas-Fired Power Plant Announced for Tioga County, PA”

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    Tenaska Westmoreland Power Stn Construction Milestone: 1M Hours

    Artist’s rendering of what Tenaska Westmoreland will look like

    In August 2016, energy giant Tenaska (headquartered in Omaha, NE) broke ground to build a 925-megawatt natural gas-fueled power plant in Westmoreland County, PA (see Groundbreaking for Tenaska Marcellus-Fired Electric Plant in SWPA). The Tenaska Westmoreland Generating Station is costing $780 million to build. Some of that money, $22 million so far, is being spent to upgrade the local Municipal Authority of Westmoreland County water treatment plant (see Tenaska Spends $22M in Water Plant Upgrades Ahead of Elec Project). The plant is on track to be completed by late 2018 when it will go online, providing power for 925,000 homes. Some 600 workers are active on the project. Tenaska recently announced a major milestone in the construction of the plant: Those 600 workers have now logged 1 million hours of work in building the plant, and there’s still plenty of hours to go. That’s 600 workers being paid with private money–money that circulates and recirculates in the local and regional economy, into the pockets of other businesses, into the pockets of labor unions (via dues), and into the pockets of local municipalities (and the state) via tax revenue. Westmoreland County and PA owe Tenaska a huge “thank you” for building the Tenaska Westmoreland Generating Station…
    Read More “Tenaska Westmoreland Power Stn Construction Milestone: 1M Hours”

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    Converted Oil Pipeline Near Philly Extends Open Season for NatGas

    Earlier this month we shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook had been purchased by a subsidiary of New Jersey Resources will get converted to flow more Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline has been named the Adelphia Gateway. On Nov. 2nd the project began an “open season”–a period of time when shippers can reserve capacity along the pipeline. Such contracts typically run for 10-20 years and guarantee the pipeline (which will invest millions) can recoup its investment and make a profit. The open season was scheduled to expire on Nov. 20th, but Adelphia has extended the open season to Dec. 8th. Adelphia says the extension was to allow for the Thanksgiving holiday. Typically such an extension means the project hasn’t secured enough business to be profitable. We don’t have a feel one way or the other for this project. Perhaps a number of people did take off for the Thanksgiving holiday and this will give Adelphia a chance to button up previously expressed interest. Signing on the dotted line means an office full of lawyers will need to review it first–and lawyers like their vacations…
    Read More “Converted Oil Pipeline Near Philly Extends Open Season for NatGas”

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    Final Push to Tax PA Drillers & Give Money to Philly Teachers

    The tax-and-spend liberals in Pennsylvania and those who oppose fossil fuels (almost always one-and-the-same) are still pushing a dreadful, devastating severance tax bill proffered by RINOsaur (i.e. ancient RINO) State Rep. Gene DiGirolamo known as House Bill (HB) 1401. The bill, if passed into law, 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 (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). 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? The House doesn’t return for voting work until next Monday, Dec. 4th. In the meantime, the bill’s lib supporters in mainstream media are trying to create the impression the bill will get adopted when the House returns from break…
    Read More “Final Push to Tax PA Drillers & Give Money to Philly Teachers”

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    “Environmental Justice” Lunacy in Allegheny County, PA

    In Pennsylvania, the “Office of Environmental Justice” (sounds like a comic book thing) is nothing more than a way for po’ folk and minorities to sue the Marcellus industry over non-existent transgressions. In 2015, then-Secretary of the Dept. of Environmental Protection (DEP), John Quigley, “reactivated” the Office of Environmental Justice (see Environmental “Justice” for Some, Not for All, Courtesy PA DEP). If you live in a PA community where at least 20% of the people are below the poverty line, or if the community is composed of at least 30% minorities (defined as “non-whites”), the so-called Office of Environmental Justice will give you special treatment if you claim to have been harmed somehow by the Marcellus industry. Everyone else gets ordinary/regular environmental “justice”–no special treatment if you’re white or middle class. In Allegheny County local officials are miffed that the municipality of McCandless got labeled as an environmental justice community, but Etna didn’t. McCandless is too white and too rich, whereas Etna is not. We would find it all rather comical–if the Environmental Justice Leaguers didn’t have such a potent weapon to oppose the shale industry…
    Read More ““Environmental Justice” Lunacy in Allegheny County, PA”

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    Update on PA Severance Tax Bill – More Progress, House Leaves Town

    We have a brief respite, but are still in a dangerous position. The Pennsylvania House continued to debate and vote on amendments to House Bill (HB) 1401 yesterday–the Frankenstein bill introduced by RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) that 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 (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). Debate on the bill began Monday, making quick progress (see Disastrous PA Severance Tax Bill Debated in House, Makes Progress). More progress was made yesterday. Some amendments to the bill passed, some failed–and then the House “abruptly adjourned” late last night without voting on the full bill itself. They got outta Dodge. The House returns to Harrisburg for more voting on Dec. 4th, so we have nearly two weeks of a reprieve before the battle begins again. It is vital this bill NOT PASS–for the future of Marcellus drilling in PA. Below is a list of the amendments that have, so far, passed and not passed, and how they tweak and change the overall Marcellus-killing HB 1401 bill…
    Read More “Update on PA Severance Tax Bill – More Progress, House Leaves Town”

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    DRBC Lawyer Nearly Faints 2nd Time When Questioned by Fed Judges

    This is getting pretty old, fast. Two weeks ago MDN told you about a lawsuit that finally got it’s day in court–a case brought by a Wayne County, PA landowner against the Delaware River Basin Commission (DRBC) over its ongoing, 10+ year ban on fracking in the Delaware River Basin (see DRBC Attorney Faints in Federal Court During Questioning). Under “heaving questioning” the attorney for the DRBC fainted in the court room, ending the session that day. Both sides were back in court yesterday to finish what began two weeks ago, and the judges once again turned up the heat on the DRBC attorney–and he almost fainted again, having to sit down (delaying proceedings for a time). Every time this lawyer gets tough questions that he doesn’t like, he pulls this fainting routine. Is it legitimate? Does he have a “condition?” Frankly, we don’t care. His “condition”–if that’s what it is–keeps blocking justice. If he’s not up to the job, remove him. Get someone who can handle the pressure. At least the session yesterday finished. Oral arguments are now done. MDN friend Tom Shepstone listened to a recording of the session and filed a fantastic report, recounting the back and forth–and how the DRBC’s defense collapsed (metaphorically) under the sharp eye of the judges doing the questioning. The DRBC and its shill leader Steve Tambini (a MAJOR disappointment since he was appointed in 2014) were exposed yesterday as the obstructionists they are…
    Read More “DRBC Lawyer Nearly Faints 2nd Time When Questioned by Fed Judges”

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    Report: Utica Drillers Spend $300M (so far) on Fixing Ohio Roads

    The Ohio Oil and Gas Association (OOGA) and Energy In Depth (EID) Ohio recently published a new report that shows Utica drillers have spent more than $300 million in eight Ohio counties from 2011 until earlier this year improving and fixing 630 miles of Ohio’s roadways. The study, titled “Ohio’s Oil & Gas Industry Road Improvement Payments” (full copy below) takes a close look at Road Usage Maintenance Agreements (RUMAs) in eight counties. You read that right. The O&G industry has spent over $300 million in eight counties over the past seven years. That’s $300 million in PRIVATE (not government-confiscated-via-taxes) money to fix up roads. Those living in eastern Ohio are lucky dogs…
    Read More “Report: Utica Drillers Spend $300M (so far) on Fixing Ohio Roads”

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    Basin Energy Buys/Merges in Marcellus-Utica Co. Katko

    Basin Energy, which acts as a holding company to invest in (and run) other companies located in the Marcellus/Utica, is based in Bridgeport (Harrison County), WV. Basin’s first acquisition was ProActive Services, an operator of natural gas pipeline compressor stations and other related oilfield services. In September 2015, Basin closed a deal on their second subsidiary–the Jane Lew (Lewis County), WV-based Starett’s Well Service, a specialty roustabout services firm, focused on well site and midstream natural gas infrastructure in the Marcellus and Utica Shale regions (see WV Roustabout Company Sells Itself to Another WV Company). Since that time Basin has been busy. In January of this year, Basin closed on acquiring Appalachian Production Services (APS), a company focused on focused on providing services for producers in the Marcellus and Utica Shale. A few weeks ago Basin did it again, closing a deal to acquire Katko, LTD. Katko is focused on providing well hook up services, maintenance of midstream and production assets and specialty welding services in OH, PA and WV. The the owner and founder of Katko, John Bettem, will join Basin’s board of directors. Terms of the private deal were not disclosed. Basin Energy has come out of nowhere in a few short years to become an important oilfield services player in the Marcellus/Utica…
    Read More “Basin Energy Buys/Merges in Marcellus-Utica Co. Katko”

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    XNG Virtual Pipeline Defends Itself Against Antis in Otsego Co. NY

    Earlier this year Xpress Natural Gas (XNG) spent $18.6 million to build a “virtual pipeline” facility in Susquehanna County, PA that employs ~90 people and loads up to 100 compressed natural gas (CNG) tanker trucks each day with PA Marcellus gas, for deliveries to customers across the Northeast and Mid-Atlantic states (see Major CNG Virtual Pipeline Coming to Susquehanna County, PA). Many of XNG’s trucks (40 per day) head up Interstate 81, catch Interstate 88 in the Binghamton area, and keep on going, eventually arriving in Herkimer County where the trucks unload the gas into the Iroquois Pipeline. Iroquois gets up to 50 million cubic feet per day (MMcf/d) from XNG’s trucks, using it for resale to customers further on down the pipeline in New York and New England (see XNG Virtual Pipe Delivering 50 MMcf/d of PA NatGas to NY Pipeline ). However, some residents in Upstate NY, in Otsego County (we suspect the same anti-fossil fuel nutters who lobbied to ban fracking and ban new pipelines) are up in arms with XNG’s daily truck trips. In order to shave miles and money from having to use Interstate 90 (NY Thruway with big tolls), XNG instead leaves I-88 and uses several state highways, routing the trucks through small towns. An eyewitness who lives along the route emailed MDN back in September said, “these [XNG drivers] are very considerate to the speed limits in the small towns they go through, I think these drivers are well disciplined…(maybe disciplined is not the right word) and the trucks are very quiet.” However, a group of antis turned up at a meeting last Thursday night in Otsego County to gripe and moan about the truck traffic. They don’t want fracking. They don’t want pipelines. And now they don’t want trucks hauling natural gas coming past their front door. Maybe they should just quit using all fossil fuels themselves and begin living like cavemen again?…
    Read More “XNG Virtual Pipeline Defends Itself Against Antis in Otsego Co. NY”

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    New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline

    A class action lawsuit was filed last week by 12 New England power customers who claim that two New England utility companies–Eversource and Avangrid–intentionally manipulated the flow of gas along the Algonquin natural gas pipeline by placing and later withdrawing orders, in order to spike the cost of gas which then spiked the cost of electricity generated by the resulting higher cost gas. It is a convoluted, cockamamie charge first brought by the radical antis at the Environmental Defense Fund (see EDF Accuses New England Gas Utilities of $3.6B Market Manipulation). EDF published a “report” that makes the preposterous claim that New England customers have overpaid utility bills by $3.6 billion due to collusion between the natural gas and electricity industries. EDF spins the outlandish theory that Avangrid and Eversource brilliantly conspired to create Enron-style fake gas shortages involving a whopping 3.5% of the capacity of the Algonquin pipeline–all in order to drive up electric clearing prices for a wind farm Avangrid didn’t yet own, a rarely dispatched Avangrid oil peaker, and three crappy, rarely operated oil and coal plants in New Hampshire (plus nine little hydro dams that Eversource was trying to unload for years, sold recently). EDF’s tall tale is so bizarre (and hard to follow) it’s laughable. Yet now a class action lawsuit has launched based on EDF’s fictional report…
    Read More “New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline”

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    New England Grid Operator: Region Needs More NatGas, Pipelines

    In a companion story today, MDN tells you about a frivolous lawsuit that claims two New England utilities have been manipulating gas flows along the Algonquin Pipeline, by “constraining” those flows (see New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline). It’s bupkis. That is, the utilities are not the ones constraining pipelines in New England. What is constraining New England pipelines is high demand for natural gas–and NOT ENOUGH PIPELINES to flow it–both for end users like residences and business, and major users like electric generating plants. So says the head of the electric grid in New England, Gordon van Welie. Speaking at a recent energy conference in Rhode Island, van Welie said, “regional pipelines were built for gas distribution companies’ heating demands, not for power generation. [van Welie] says they’re at, or near capacity, in winter and generators have to use more expensive fuels, including oil and liquefied natural gas.” van Welie also said, “The gas problem [lack of it] is going to live with us for a long time” because more than 50% of New England’s electric power generation comes from gas-fired plants. What about Big Green favorites, wind and solar? van Welie rained on Big Green’s parade, saying wind and solar can’t replace gas because they’re “intermittent sources of power.” Whoops! Big Green’s bubble just got burst by reality and good old common sense. Here’s more about the meeting, and van Welie’s remarks…
    Read More “New England Grid Operator: Region Needs More NatGas, Pipelines”

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    Disastrous PA Severance Tax Bill Debated in House, Makes Progress

    Warning: Pennsylvania House Republicans are about to kill Marcellus drilling in PA by adopting a severance tax on top of the existing impact tax–creating the highest taxation of the oil and gas industry in the United States. Is PA ready to trade away an entire industry propping up its sorry finances–just to give money to Philly teacher’s unions? This is a TRAGEDY in the making. RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) introduced a Frankenstein bill earlier this year called House Bill (HB) 1401 (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). The bill would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers. As soon as the bill made its way out of committee to the full House for consideration, over one hundred amendments were attached to it. Most of those amendments have been ruled “out of order” and removed from the bill, reviving the bill which is now under active consideration. A number of important amendments still remain and some of those were voted on yesterday. What you need to know front and center is that this bill is about a massive transference of wealth from those who produce wealth by working hard (drilling companies and landowners) to those who don’t (teacher’s unions). One of the amendments to HB 1401 passed yesterday reserves the first $150 million of the new severance tax solely for Big Education. The entire amount of revenue raised from a new severance tax, according to RINOsaur DiGirolamo, is expected to be $150 million. That is, ALL of the severance tax will go to Big Education, as payback. And you thought MDN was just spouting off, using hyperbole, ignorant or just plain mistaken all these years we’ve been screaming at the top of our lungs that the severance tax is nothing more than payback to Philly teachers for voting Tom Wolf into office. We (don’t) hate to say it: we were right. And now traitorous Republicans are making it possible for this to happen–for Wolf to get his way and corruptly funnel money back to the unions that elected him. Is any one else outraged at this? Are House Republicans asleep at the wheel???…
    Read More “Disastrous PA Severance Tax Bill Debated in House, Makes Progress”

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    FERC Approves WB Xpress Pipeline Across WV, VA

    The Federal Energy Regulatory Commission (FERC) on Friday granted final approval for Columbia’s WB Xpress pipeline project. In Jan. 2016, Columbia Pipeline Group (now owned by TransCanada) filed a full, official application with FERC for the $850 million WB XPress Project (see Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA). WB XPress consists of two new compressor stations, 26 miles of pipeline replacement located along existing corridors (11.6 miles of it in Monongahela National Forest), and 2.9 miles of new pipeline in Virginia and West Virginia. The WB XPress Project will expand capacity of the Columbia Gas Transmission pipeline system in the region by 1.3 billion cubic feet per day (Bcf/d), linking Marcellus gas supplies to new markets. FERC issued a favorable environmental assessment for the project in March of this year (see FERC Gives Columbia WB XPress Enviro Thumbs Up). In September, the U.S. Forest Service gave their blessing (see WB XPress Pipeline Gets Important USDA Approval for Natl Forest). And now the fat lady has sung: FERC has issued a final approval for the project, meaning the next step is for construction to begin…
    Read More “FERC Approves WB Xpress Pipeline Across WV, VA”

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    NFG and NY DEC Go At It in Federal Court Over Pipeline Rejection

    Last week lawyers for National Fuel Gas Company and the New York Dept. of Environmental Conservation (DEC) were in federal court doing battle over the DEC’s arbitrary and capricious rejection of an important Marcellus pipeline project. Three years ago NFG proposed and filed to build the Northern Access Pipeline project–a $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. The Federal Energy Regulatory Commission (FERC) granted final approval for the project in February of this year (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). However, in April of this year, the DEC ruled against granting the project stream crossing permits, effectively killing it, at least for now (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). In April, NFG sued the DEC in the Second Circuit of the U.S. Court of Appeals to overturn the denial (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). That case was argued last week before a panel of three judges from the Second Circuit…
    Read More “NFG and NY DEC Go At It in Federal Court Over Pipeline Rejection”