Industrywide Issues

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    Antis Continue to Fight Inevitable NEXUS Pipe, Change Strategies

    Anti fossil fuelers committed to stopping (NOT rerouting) the newly approved NEXUS Pipeline in Ohio continue to pin their hopes on a meritless lawsuit against the Federal Energy Regulatory Commission (see CORNballs Strike Again, File Lawsuit to Stop NEXUS Pipeline). However, just in case that doesn’t work (which of course it won’t), members of the Coalition to Reroute NEXUS (or CORN, folks we call CORNballs), have two more strategies up their sleeve which they hope will work. The first is to convince the Ohio EPA to deny a federal stream crossing permit for the project. That tactic worked in Communist New York State, so they hope maybe it will work in Ohio. Second, if all else fails, a couple of CORN members are running for the local town board in the districts where they live (in Media County). No doubt they plan to make mischief at the town board level, perhaps by introducing/passing illegal zoning ordinances to try and slow down or stop NEXUS…
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    3rd University of Cincinnati Finds No Problems with Utica Fracking

    The University of Cincinnati (UC) has now used $470,000 of taxpayer money for three research studies (over the past four years) to study the health effects of Utica Shale fracking. One of the studies dealing with ambient air pollution (published in March 2015) had such major errors the authors retracted it in June 2016 (see Ohio Air “Study” Near Frack Sites Retracted for Basic Math Error). Kind of embarrassing. Another study was completed 18 months ago, looking at potential issues of fracking on nearby water wells in Ohio. That study was funded, in part, by anti organizations who didn’t like the findings–that there IS NO negative impact of fracking on groundwater. So they’ve hushed it up and have refused to allow it’s publication (see Chorus Grows Louder for U of Cinci to Release Fracking Study). Now come leaks that a third research project has been completed at UC, once again looking at air samples near fracking sites–this time looking for elevated levels of volatile organic compounds (VOCs) and formaldehyde. The findings are that, “none of the air sample averages exceeded EPA levels of health concern.” Looks like yet another UC study that will get buried and never see the light of day…
    Read More “3rd University of Cincinnati Finds No Problems with Utica Fracking”

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    Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1

    Atlantic Sunrise Pipeline – click for larger version

    An important piece of Williams’ $3 billion Atlantic Sunrise Pipeline project, meant to flow Marcellus gas to new markets in the Mid-Atlantic and southeast, is about to go online in the next few days. You read that right. Most of the coverage here on MDN with respect to the Atlantic Sunrise project has been about the most controversial part of the project–183 miles of new “greenfield” (brand new) pipeline construction that will happen in Pennsylvania–a project referred to as the Central Penn Line. Small groups of antis in places like Lebanon and Lancaster counties have vigorously opposed the new pipeline portion of the project in their communities. However, upgrades to several compressor stations and fixes to the existing Transco pipeline as it runs through states like Maryland and Virginia are also needed in order to make Transco bi-directional–able to continue flowing gas from the Gulf to the northeast, but now, also able to reverse and flow gas from the Marcellus/Utica in the other direction. Although the greenfield portion of the project has not yet begun (should in the next few weeks), the “brownfield” or tweaks to the existing pipeline/compressor stations has been underway, since February, and is now ready. The Federal Energy Regulatory Commission (FERC) has just granted Williams permission to bring the new tweaks online, which will allow Transco to reverse and flow an extra 400 million cubic feet per day (MMcf/d) of natural gas from Lancaster County, PA all the way to Choctaw County, Alabama…
    Read More “Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1”

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    Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again

    A Broome County, NY judge ruled yesterday that the Town of Fenton 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.” MDN has chronicled the project from the beginning (see our NG Advantage stories here). Yesterday’s ruling was not an indictment of the project itself by the judge–only the way in which it was approved by the local town planning board. The judge left the door open for the town to re-do it’s approval process–this time including a full environmental impact study and an aquifer study. NG’s CEO Rico Biasetti said that while he is disappointed, the company remains committed to building the facility at the Fenton location and will work with Fenton to try again…
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    OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands

    Ohio Gov. John Kasich (RINO) promised, five years ago, to allow shale drilling on state-owned forests and parks. He promptly then reneged on his promise. The way Kasich blocked drilling was to refuse adding new members to the Oil and Gas Commission, charged with approving potential drillers on state land. Kasich created a de facto moratorium that prevents fracking on state-owned land. In May of this year, Republican legislators, tired of Kasich’s recalcitrance, added a “little-noticed provision” in the state budget deal that will give the legislature, and not the governor, the power to select members of the Ohio Oil and Gas Commission (see Ohio Legislators Push to Allow Fracking in State Parks, Forests). Kasich vetoed the measure but legislators overrode the veto. As we reported in July, Kasich was on the verge of losing his power to block state land drilling (see Ohio Gov Kasich About to Lose Power to Stop Drilling on State Land). Faced with humiliating defeat, Kasich decided to act and is now reportedly “working hard” to get the appointments made…
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    Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit

    Exactly two years ago, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories)–filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca, PA (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board–a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups want fenceline monitoring and restrictions on flaring. Shell caved and gave them most of what they want, signing a settlement agreement last Friday (copy below). Shell did win one important concession: the litigious Big Green groups can’t sue Shell over any of their wild claims in the original filing…
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    Allegheny Institute: PA Impact Fee is Better than a Severance Tax

    The Allegheny Institute is out with another top notch policy brief. This one tackles the state’s existing impact fee and addresses the issue of why revenues from the impact fee have slid over the past several years. The Institute is not denigrating the impact fee, but lauding it as a better system of taxation than a severance tax. The Allegheny Institute exists to conduct research, education and advocacy work in a mission to defend taxpayers and businesses against burdensome taxation, inefficiency and intrusiveness of an ever expanding government–a pretty tall order because government at all levels is always expanding, like a voracious monster. Think of the Allegheny Institute as a mini version of the Heritage Foundation–focused specifically on Pennsylvania. The newest brief, titled “Shale Gas Impact Fee Revenue Continues to Slide” (full copy below) takes an honest, and hard look, at the impact fee. Researchers conclude that slapping a severance tax on top of the impact fee would be a disaster and violate the state’s commitment to drillers when they passed the impact fee…
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    CIA Veteran Says Russia Funneling Money to Va. Anti-Pipe Groups

    An extensive expose appearing on The Daily Signal blows the doors off collusion and money funneling from Russia to several Big Green groups using that money to oppose pipeline projects, including opposition to the Mountain Valley Pipeline and Atlantic Coast Pipeline projects here in the Marcellus/Utica region. A 29-year CIA veteran does a masterful job of connecting the dots between the Kremlin and so-called environmental groups that are using Russian money to oppose these American, much-needed pipeline projects. Group allegedly receiving Russian money include Virginia Organizing, Preserve Montgomery County and Friends of Nelson County in Virginia. Nationally, groups on the take with Russian money include the Natural Resources Defense Council, Sierra Club, and League of Conservation Voters Education Fund. Are they committing treason? We report, you decide…
    Read More “CIA Veteran Says Russia Funneling Money to Va. Anti-Pipe Groups”

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    PA DEP Raising Shale Well Permit Fee Later This Year

    The Pennsylvania Dept. of Environmental Protection has put drillers (and everyone) on notice that it will bump up the fee to file for a permit to drill a Marcellus Shale well. Prior to 2013, the permit fee for a new Marcellus well was $3,200. In 2013 the DEP bumped it up by 56%, to $5,000 (see Higher Marcellus Permit Fees Coming for PA Drillers). The DEP says statutorily it must review the fee “every three years” and now is the time (past time, really). The DEP is signaling “the need for a fee increase.” How much? The DEP is being coy about what kind of a jump they plan this time…
    Read More “PA DEP Raising Shale Well Permit Fee Later This Year”

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    NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline

    There’s been an interesting twist in the saga of National Fuel Gas Company’s (NFG) Northern Access Pipeline project. The $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). Shortly after, NFG filed a request with FERC (in March) to bypass the New York Cuomo-corrupted Dept. of Environmental Conservation (DEC) because the DEC was dragging its feet on a decision to grant stream crossing permits for the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). Needless to say, the DEC didn’t like it. 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). After DEC’s denial, NFG sued the DEC in the Second Circuit of the U.S. Court of Appeals to overturn their denial (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). OK, now is where it gets interesting. A similar court case was filed by the Constitution Pipeline against the DEC with the 2nd Circuit. The court ruled against the Constitution and for the DEC on August 18 (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). We’re sure NFG can see the writing on the wall for their lawsuit. So NFG has gone back to FERC and their request filed back in March that FERC bypass the DEC and go ahead and grant permission anyway. NFG made a motion for an “expedited request” by FERC last week. What if FERC agrees and overrules the DEC? And what if they don’t?…
    Read More “NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline”

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    Atlantic Coast Pipeline to Give “Pollinator” Insects a Boost

    Dominion Energy’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, will help butterflies, bees and other “pollinator” insects along the pipeline’s route. Last week Dominion announced an initiative to establish new habitats for pollinator insects. The plan will use 750 acres along roughly 50 miles of the proposed route in Virginia and North Carolina. It’ll be fun to see how so-called environmentalists will find fault with helping the environment…
    Read More “Atlantic Coast Pipeline to Give “Pollinator” Insects a Boost”

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    New FERC Quorum Votes Final Approval for NEXUS Pipeline

    Two new members added to the Federal Energy Regulatory Commission by President Trump (Neil Chatterjee and Rob Powelson), added to the Obama-appointed member (Cheryl LaFleur) have not wasted any time in authorizing their first major pipeline project as a group. Last week the trio voted to approve the first major pipeline project since a quorum has been reestablished–NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. On August 4th, NEXUS, which is a jointly owned project between DTE Energy and Spectra Energy (now part of Enbridge), sent a letter to the new FERC quorum urging fast action (see NEXUS Pipeline to FERC: Please Approve Project – NOW). Perhaps the letter did the trick. On Friday, August 25th, the three issued a certificate of public convenience and necessity (full copy below) allowing the project to move forward. Because of the delay when FERC was without a quorum, NEXUS says the pipeline will now evaluate and supply a new construction schedule, but they do plan to have the pipeline up and running sometime in 2018…
    Read More “New FERC Quorum Votes Final Approval for NEXUS Pipeline”

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    Tetco Pipe Drilling in Athens, OH Hits Gas Pocket, Catches Fire

    Click for larger version of map

    As part of drilling underground (directional horizontal drilling, or HDD), Enbridge hit a pocket of natural gas in Athens County, OH about 400 below the surface. The gas leaked out and caught fire last Wednesday, partially burning the drilling rig. Fortunately the rig operators have the presence of mind to evacuate quickly and no one was hurt. The fire closed a section of Route 681 southeast of Albany, OH until Friday afternoon. According to press reports, the work being done is for the Texas Eastern Transmission pipeline (Tetco). This next bit is our own conjecture (we are not 100% sure), but we think we know which Tetco-related project Enbridge was working on. A year ago, in August 2016, the Federal Energy Regulatory Commission (FERC) approved three Spectra Energy pipeline projects all part of the same package to flow more Marcellus/Utica gas to the South (see FERC Approves 3 Spectra Energy Pipe Projects in Marcellus/Utica). The three projects, which together will add an additional 662 million cubic feet (MMcf/d) of capacity along Tetco, are Access South, Adair Southwest and Lebanon Express. We believe the work being done was for this trio of projects. Given the location of the fire (Athens County), it was likely the Adair Southwest project (see the project map). The Enbridge website lists Range Resources as the shipper that reserved capacity along the Adair Southwest portion of the upgraded Tetco (200 MMcf/d of capacity). Below is the news would could find regarding the fire…
    Read More “Tetco Pipe Drilling in Athens, OH Hits Gas Pocket, Catches Fire”

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    4 Tetco Pipe Projects Ready Soon Will Add Extra 1 Bcf/d Capacity

    Four Texas Eastern Transmission (Tetco) pipeline projects are expected to be completed by the end of this year and when they are, they will together flow an extra 1 billion cubic feet per day of Marcellus/Utica gas to more profitable markets in the South, as far away as the Gulf Coast. The four Tetco projects are: Gulf Markets Expansion Phase 2, Access South, Adair Southwest and Lebanon Extension. As fate would have it, Tetco experienced a fire while drilling under a highway for what we believe is the Adair Southwest project (see today’s companion story, Tetco Pipe Drilling in Athens, OH Hits Gas Pocket, Catches Fire). Three of the four projects–Access South, Adair Southwest and Lebanon Extension–are part of the same umbrella filing with the Federal Energy Regulatory Commission (FERC). Those three together will flow an extra 662 million cubic feet (MMcf) per day of gas to Ohio, Kentucky and Mississippi. Some of that gas will then catch a ride on the Gulf Markets Expansion Phase 2, flowing gas to Louisiana and Texas. Here’s the exciting part: Some of that gas will go to LNG export facilities, and some will go by pipeline from Texas to Mexico. Cool! Marcellus/Utica gas finding its way to other countries via the Tetco pipeline. Which means some Marcellus/Utica drillers will get higher prices for their gas. Here’s an update on Tetco’s four pipeline projects combining to boost prices in our region, and carry our gas to other parts of the world, and which drillers will benefit…
    Read More “4 Tetco Pipe Projects Ready Soon Will Add Extra 1 Bcf/d Capacity”

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    Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe

    The Sisters of the Corn have lost their battle to prevent the Williams Atlantic Sunrise Pipeline from crossing their cornfield. Last month MDN told you about a group of Catholic nuns who, with the help of radical Big Green groups, cleared a portion of a corn field they own (local farmer uses for planting corn), plopped a couple of wooden park benches and portable flower trestle in the middle of the corn field, and declared the spot a “chapel” (see Catholic Nuns Use Radicals to Build Chapel in Path of PA Pipeline). It’s a joke. But they weren’t laughing. They really thought that (a) if they refused to sign an easement granting a right-of-way to Williams, and (b) if they stuck a couple of park benches in a corn field, a judge would stop the pipeline from passing through–at least on their land. They were wrong. The Sisters of the Corn (as we call them, the actual name is The Adorers of the Blood of Christ) were one of five holdout property owners who would not sign easements. Last week a judge granted the easements anyway. Atlantic Sunrise now has 100% of the land they need to build the pipeline. Oh! The interesting thing about the Sisters of the Corn? The Sisters use natural gas to heat a retirement community they operate on the very same property where they don’t want a natural gas pipeline…
    Read More “Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe”

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    Haynesville Shale Tops Marcellus Rig Count, 1st Time Since 2011

    The Haynesville Shale, found in East Texas and Louisiana, last week surpassed the Marcellus for total number of active drilling rigs. That’s the first time the Haynesville has had more active rigs than the Marcellus since 2011–six years. What’s up with the “sleepy” Haynesville? It’s not so sleepy anymore. Last year one of the biggest and best drillers in the Marcellus, Range Resources, paid $4.4 billion to buy out and take over a Louisiana driller (see Range Resources Buys Louisiana Driller in Deal Worth $4.4B). Range drills in the Terryville Field in Louisiana, which sits just over top of the Haynesville. This year Range is spending 34% of their capital expenditure budget on Louisiana drilling–money that could have been spent in the Pennsylvania Marcellus. Why is the Haynesville picking up again? (1) It costs less to drill in Louisiana because taxes and other drilling costs are lower, and (2) pipeline infrastructure is already in place to sell the gas into higher-paying markets. This is a very loud warning to those in PA who say “drillers won’t go anywhere else ’cause the gas is here” as a justification for slapping a severance tax on top of the impact fee on top of a corporate state income tax: THEY’RE ALREADY LEAVING PENNSYLVANIA, going to the Haynesville and other plays. How obtuse can you be? How stupid is it to RAISE taxes when drillers are already shifting away from the state? If PA lawmakers insist on slapping drillers with a severance tax, drillers will be happy to turn the spigots off for a while until prices go up and they can afford to pay the tax. Drillers are equally happy to spend their money drilling new wells in other states, given regulatory problems and high taxes. And then where will your “easy money” come from to balance an overspent state budget?…
    Read More “Haynesville Shale Tops Marcellus Rig Count, 1st Time Since 2011”