Industrywide Issues

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    Transco’s New York Bay Expansion Goes Live, Flows More Gas to NYC

    Williams announced yesterday that its New York Bay Expansion pipeline project to flow an extra 115 million cubic feet per day (MMcf/d) of natural gas to New York City is now online and working. In July 2015, Williams filed an application with the Federal Energy Regulatory Commission (FERC) for the $130 million project, which will flow Marcellus gas to 500,000 additional New York City residents by the 2017/2018 heating season (see Williams Announces New Upgrades to Transco Pipeline into NYC). In July 2016, FERC approved the project and construction began (see FERC Approves Transco Expansion Projects in NYC & Virginia). The project expanded capacity on the Transco pipeline by installing new compressor station equipment, replacing a quarter mile of pipeline (in New Jersey), and upgrading meter and regulator stations at several locations in NJ, PA and NY. All the work was done in existing rights-of-way and at existing facilities, with no new building or greenfield construction necessary. That didn’t stop the crazies from protesting, which they did. The good news is that the project is now completed and more yummy, fracked Marcellus gas is now flowing to customers in Brooklyn, Queens, Staten Island and Long Island…
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    NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?

    North Carolina has become the first state to complete an environmental evaluation for Dominion’s proposed $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. ACP is slated to run through eight NC counties. After completing it’s evaluation, the NC Dept. of Environmental Quality (DEQ) issued a rejection letter (copy below) for the project. The reason? The DEQ says the erosion and sediment control plan for the project is not up to scratch. Dominion can now do two things: Revise the erosion and sediment control plan and resubmit it, or contest the DEQ’s rejection of the existing plan. Although antis are rejoicing at the news, there really isn’t much here in the way of news. This is not uncommon in pipeline reviews. A government agency (federal or state) will push back on some aspect of the plan, the project builder will modify the plan, and the modified plan will pass muster and life goes on. That’s the way it works. The DEQ is (presumably) doing it’s job and not simply looking for an excuse to reject the project. We’ll give them the benefit of the doubt–this time. Although we’ve not read that Dominion has responded to the rejection, another partner in the project, Duke Energy, has responded–saying they will provide the necessary information the DEQ says is missing in the original plan…
    Read More “NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?”

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    Small Group of Radicals Blocks Atlantic Sunrise Site in Lancaster County

    Environmental radicals from a group called Lancaster Against Pipelines made good on their promise to disrupt work on Williams’ Atlantic Sunrise Pipeline project–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. Lancaster Against Pipelines is headed up by Mark Clatterbuck (who participated in the protests against the Dakota Access Pipeline) and his wife Malinda. The clattering Clatterbucks got 20-35 wackos from Lancaster County to load themselves into 16-18 vehicles (numbers change depending on the news source), which they then drove onto an access road used by Williams, where workers are beginning to clear land. The wackos parked themselves right in the middle of the road and stood in front of machinery, preventing Williams personnel from accessing the site. The only problem, for the wackos, is that it was raining so hard (leftovers from Hurricane Nate moving through), that Williams personnel weren’t working at the site anyway! However, it’s the principle of the thing. So the police were called. The so-called protesters were asked to move (or be arrested)–so they moved. End of story. Nobody hauled away in handcuffs, no striking images of people laying down refusing to move (too wet for that). Just a bunch of wackos with nothing better to do for a few hours, along with a few reporters…
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    OH Supreme Court Blocks Youngstown Frack Ban Ballot Measure

    In July MDN told you that puppets of the PA-based Community Environmental Legal Defense Fund (CELDF) have once again gotten enough signatures to put a so-called Community Bill of Rights (i.e. frack ban) ballot measure on the ballot this November in Youngstown, Ohio for a 7th time (see Youngstown Frack Ban Vote on November Ballot – for 7th Time). The same people have tried six times before–and the ballot measure failed every single time. However, as we pointed out, this time is different. In addition to the usual no fracking, no pipelines pablum, this 7th petition has language that makes it legal to break the law. If the ballot measure were to pass, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. It would, in essence, legalize mob rule. In September the Mahoning County Board of Elections voted to NOT allow measure on the ballot in November (see Mahoning County Bans Frack Ban Measure from Nov Ballot in Youngstown). Using the deep pockets of the CELDF, antis appealed the rejection to the Ohio Supreme Court. It didn’t take the Supremes long. They ruled last Friday to uphold the Mahoning County Board of Elections decision to not allow the measure on the November ballot. However, it was a close vote, 4-3, and likely means more litigation will follow in the future…
    Read More “OH Supreme Court Blocks Youngstown Frack Ban Ballot Measure”

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    Another Look at WV’s Co-tenancy & Joint Development Proposals

    When MDN editor Jim Willis attended the Shale Insight conference in Pittsburgh two weeks ago, one of the recurring themes he heard from West Virginia officials is that the state urgently needs to pass “mineral efficiency” laws. What they meant by mineral efficiency is another name for co-tenancy and joint development. We’ve written a fair bit about the topic–what we call “forced pooling lite.” In August the West Virginia Oil & Natural Gas Association (WVONGA) announced its intention to push, once again, for co-tenancy and joint development (see WVONGA Makes Plans to Push Forced Pooling Lite in 2018). We spotted an editorial from the co-founder of the West Virginia Surface Owners Rights Organization on the topic co-tenancy and joint development. He has a unique perspective. He calls co-tenancy “majority rules” and joint development “invisible ink.” What does he mean? And what would these two measures do if adopted? And is there really an urgent need for them? Let’s tackle this issue once again…
    Read More “Another Look at WV’s Co-tenancy & Joint Development Proposals”

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    Is Marcellus/Utica Gas Getting Exported from Cheniere’s Sabine Pass?

    One of the reasons we periodically report, and keep a close eye on, Cheniere Energy’s Sabine Pass LNG export facility in southern Louisiana is our suspicion that at least some Marcellus/Utica gas makes its way to that facility and gets exported to other countries. We’ve never been able to prove our suspicion, but we got a lot closer to proving last February when Williams confirmed that the mighty Transco Pipeline now has a direct connection to Sabine Pass (see Williams Confirms Transco Now Ships Gas Directly to Cheniere LNG). Our friends at RBN Energy have done a deep dive into this topic. Using flow data and their own knowledge of pipelines and reports about new projects coming online, RBN has determined that “there are early indications that recent pipeline takeaway and reversal projects from the producing region and the resulting connectivity are indirectly bridging the divide.” Meaning that by using indirect routes (gas passed from one pipeline to another to another), indeed some of our gas is making its way to the Sabine Pass export facility…
    Read More “Is Marcellus/Utica Gas Getting Exported from Cheniere’s Sabine Pass?”

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    Important Marcellus/Utica Primer Available to Download – for FREE

    MDN editor Jim Willis has once again partnered with NGI (Natural Gas Intelligence) to bring you a great (and FREE) opportunity to learn more about everyone’s favorite twin shale plays: The Marcellus and Utica Shales. NGI produces a mountain of data and information as part of their research and development efforts, publishing it in a Shale Plays Factbook, which costs $179. However, because of MDN’s special partnership with NGI, they have agreed to combine the Marcellus/Utica sections from the Factbook into a special primer, available free for MDN readers only. Here’s what’s in the Marcellus/Utica Shale Primer, a few sample pages, and how you can get a copy instantly…
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    Ohio Approves 2 Utica-Fired Power Plants in Guernsey, Trumbull Counties

    Last week the Ohio Power Siting Board (OPSB) approved two new Utica-gas powered electric plants, and authorized the expansion of a third plant to a bigger size. The OPSB approved the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for (surprise!) Guernsey County, OH (see New Utica-Powered Electric Plant Proposed for Guernsey County, OH). OPSB also approved the Trumbull Energy Center project, a new plant proposed by Clean Energy Future for (surprise!) Trumbull County (see Details on Newly Announced Trumbull Energy Center Electric Plant). That second one may or may not sound familiar. Clean Energy is already building an electric generating plant in Trumbull County–in Lordstown, called the Lordstown Energy Center (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). Clean Energy proposed building a second plant right next to the first one (see Details on Newly Announced Trumbull Energy Center Electric Plant). We suppose Clean Energy could have called the second plant Lordstown Energy Center II, but instead they elected to call it Trumbull Energy Center. Two plants, side by side, built by the same company–now approved by OPSB. The OPSB also approved a request by Clean Energy to expand the already-under-construction Lordstown plant, from 800 megawatts to 940 megawatts. Here’s the lowdown on what got approved, and where it’s all located…
    Read More “Ohio Approves 2 Utica-Fired Power Plants in Guernsey, Trumbull Counties”

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    Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor

    Fire it up! On Friday, the Federal Energy Regulatory Commission (FERC) granted Energy Transfer permission to fire up the three units that make up the Carroll County Compressor Station (called Compressor Station 1) that helps compress and flow natural gas through the mighty Rover Pipeline. According to the letter from FERC authorizing the startup of the compressor station, FERC is authorizing “partial” service to commence. Since ET wanted to start the station on Friday, we expect the plant is by now up and running. The effect will be dramatic. According to stats released by NGI (Natural Gas Intelligence), which has an excellent Rover Tracker application on their website (see Friday’s version here), Rover has been flowing around 680 million cubic feet per day (MMcf/d) of Utica/Marcellus gas. With the addition of the Carroll County compressor station, that number will nearly double–to 1.2 billion cubic feet per day (Bcf/d). Cool! Here’s the details of how Rover’s capacity just nearly doubled with the addition of a single compressor station…
    Read More “Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor”

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    Antis Redux Court Strategy on Orange County, NY Gas Power Plant

    Antis certainly learn from one another. If an anti-fossil fuel tactic works (in court) in one place, antis in other locations jump on it like white on rice. Ninny nanny antis in the Chenango Valley School District (suburb of Binghamton, NY) got their knickers in a twist when NG Advantage proposed building a “virtual pipeline” project about a mile from one of their schools. A virtual pipe is a compressor station that compresses gas from a pipeline (the Millennium in this case) and loads it onto specially fitted tanker trucks to haul the gas to industrial users. The school paid $40,000+ for an outside-the-area law firm, which sued and in a county-level court (called “Supreme Court” in quirky NY). The Big Money law firm won the case, convincing the judge to proclaim that the local planning board didn’t do a good enough job in considering NG’s application (see Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again). Hey, it worked in Broome County, NY, so the ninny nanny antis in Orange County, NY (close to New York City) thought they would give it a try. Competitive Power Ventures is in the midst of building a $900 million natural gas-fired electric generating plant in Wawayanda, Orange County. Early on local antis sued to stop the project, but a local judge threw out the case in 2015, clearing the way for construction (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). Antis next tried to deny a source of fuel for the plant. They were successful in pressuring New York’s corrupt governor, Andrew Cuomo, to instruct his corrupt Dept. of Environmental Conservation, to deny a permit for a 7.8 mile pipeline to feed the plant. Eventually, in an unprecedented (and embarrassing for NY) action, the Federal Energy Regulatory Commission overruled the DEC to allow the pipeline to be built. So that avenue to stop the CPV electric plant bombed out for the antis. Back to square one. Antis are now suing the local planning board in Wawayanda, claiming they didn’t do a good enough job in reviewing the original application. Sound familiar? A court date is set for tomorrow in the case…
    Read More “Antis Redux Court Strategy on Orange County, NY Gas Power Plant”

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    Shell Files PA Application for Ethane Pipe to Feed Cracker Plant

    Click to view a larger version of the map

    Shell’s long-talked about ethane pipeline, called Falcon Pipeline, is finally official. That is, official in the sense that Shell filed an application with the Pennsylvania Dept. of Environmental Protection last week, looking for permission to build it. Brief history: In February 2016, MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June 2016 (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily broke a story in August 2016 that shed new light on the project–news that Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). As NGI reported at that time, the new ethane pipeline system has a name: the Falcon Ethane Pipeline System. In October 2016 Shell launched a binding open season for the Falcon pipeline (see Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline). You might justifiably think that with open seasons and a scad of easements signed between landowners and Shell, that the project had already filed for permission to build. Not so. Last week Shell made it official by filing that paperwork–for the portion of the pipeline running through PA…
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    Lewis County, WV: Pipelines, Drilling Elsewhere Boost Local Economy

    Lewis County, WV is not the first county you think of when it comes to the Marcellus/Utica Shale. While Lewis shares a border with the highly drilled Doddridge County, there have been very few shale wells drilled in Lewis. Perhaps we should say there’s been very few permits to drill shale wells in Lewis–we’re not 100% sure if any wells have actually been drilled. But no matter. Lewis has, in the past, benefited greatly from the shale industry. A number of companies are located in Lewis that serve the shale industry, providing jobs for Lewis residents. And pipelines are scheduled to cut through the county–both the $5 billion Atlantic Coast Pipeline and the $3.5 billion Mountain Valley Pipeline. Those two projects alone have the potential to employ hundreds of Lewis County residents. A recent report from the WV Bureau of Business & Economic Research says some 2,000 Lewis County residents (16% of the working population) are employed by natural resources and mining. That number will grow 2% a year for the next five years. In other words, counties like Lewis don’t have to have shale wells drilled to see enormous economic benefits from the shale industry…
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    Harrisburg Job Fair Oct 6-7 Looks to Fill 400 Pipeline Jobs

    Listen up job seekers in eastern Pennsylvania: The International Brotherhood of Teamsters is looking for 400 people to work on building Williams’ Atlantic Sunrise Pipeline–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. The job fair is happening TODAY (Friday) and TOMORROW (Saturday) ath the Harrisburg-Hershey Crown Plaza located at 23 South 2nd Street in Harrisburg (8am-4pm both days). According to the Teamsters, there are “hundreds of jobs to fill” and they are “looking to expand our workforce quickly.” Qualifications? You need to be 21 years old or older, have a driver’s licence, and be willing to travel. Construction experience is a plus, but not required. Here’s the deets…
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    Shell Holding Career Expo in SWPA Oct 12 to Discuss Cracker Jobs

    While the Teamsters are holding a job fair today and tomorrow in Harrisburg to recruit for pipeline workers (see today’s lead story), next week Shell and the Community College of Beaver County (CCBC) will hold two back-to-back career expos on the other side of the state, in the Pittsburgh region, to “inform residents about all the current and emerging job opportunities” at Shell’s ethane cracker plant. On Thursday, Oct. 12, Shell will host the Pennsylvania Chemicals Military Petrochemical Day from 8am to 2pm–for former military service members. The event will be held in room 9103 of CCBC’s Learning Resources Center. Then at 6pm on the 12th, a free career expo will be held at the CCBC Dome–open to the public. Preregistration is not required, but is encouraged. This is your chance to meet with folks face-to-face who can help you land a job working on (or in) the mighty Shell ethane cracker. Don’t miss it!…
    Read More “Shell Holding Career Expo in SWPA Oct 12 to Discuss Cracker Jobs”

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    India’s RIL, Carrizo Sell NEPA Marcellus Assets for $210M

    Reliance Industries Limited (RIL) is the single largest company in India, and one of the largest energy companies in the world. RIL invested $3.5 billion in a Marcellus joint venture with Atlas Energy in 2010, and later battled Chevron to buy Atlas–but Chevron won, so RIL became a jv partner with Chevron. RIL currently has 3 U.S. shale joint ventures: the Chevron jv in the Marcellus (owns 40% of that acreage), a jv with Carrizo Oil & Gas in the northeast PA Marcellus (owns 60% of that acreage), and a jv with Pioneer Natural Resources in the Texas Eagle Ford (owns 45% of that acreage). Back in 2015, RIL signaled they are looking to dump all of their U.S. shale assets (see Indian Giant RIL Looking to Dump its Marcellus Joint Ventures). It took a few years, but earlier today Banpu, Thailand’s largest coal producer, announced that is has purchased all of the RIL/Carrizo jv (from both RIL and Carrizo) in northeastern PA–for $210 million. Does Banpu sound familiar? It should. This is the fifth investment Banpu, via its American subsidiary Kalnin Ventures, has made in the northeast Marcellus…
    Read More “India’s RIL, Carrizo Sell NEPA Marcellus Assets for $210M”

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    ME2 Pipe Blasting in Lebanon County Uncovers Old Pollution

    Blasting and drilling work in Lebanon County, PA related to building the Mariner East 2 Pipeline may have caused old deposits of MTBE (a gasoline additive) that had been stored at an old Sunoco facility to dislodge and migrate–into a nearby farmer’s water well. A subcontractor doing blasting work on Sept. 11 experienced “complications” during a detonation. Pieces of rock and debris hit a nearby house and swimming pool. Not a good thing. That blasting may also have led to the migration of MTBE to a nearby farm where MTBE had not previously been detected. Also not a good thing. Sunoco used to operate the Quentin terminal from 1940 to 1993 that served as a petroleum storage facility for the original Mariner East Pipeline–that flowed petroleum. That pipeline has since been repurposed and now flows natural gas liquids. Leaks from the old storage facility were known to have contaminated the ground in the area. It appears the blasting may have disturbed some of the pollution sitting under ground…
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