Industrywide Issues

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    ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks

    Rover Pipeline is Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid”. That is, they sprung a leak and spilled nearly 2 million gallons of drilling mud (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The leak did not spill into the Tuscarawas River (thankfully), but into a wetland next to the river. As we pointed out at the time, “Fortunately the primary component of said drilling fluid is nontoxic bentonite–the same ingredient used to make shampoo, deodorant, toothpaste and kitty litter.” The Ohio Environmental Protection Agency (OEPA) investigated the spill, following an “anonymous tip” and found the presence of diesel fuel in the spilled mud. Diesel fuel IS toxic–and its presence is not a good thing. OEPA’s testing found “very very low levels” of diesel fuel, whatever that means. Even very very low amounts are not good–and in fact are illegal. Since that time Energy Transfer has tried to figure out why there is diesel in the drilling mud–because they sure didn’t order it, and they firmly believe their drilling contractor did not add it to the mud. So how did it get there? On Friday Energy Transfer offered two theories–either an accident spilled diesel into the mud, or it was intentionally placed there by antis, as an act of sabotage. We do find it interesting that OEPA Director Craig Butler, who has been combative against Energy Transfer and the Rover project, claims an anonymous source tipped him to the presence of the mud. Was the anonymous source a whistle blower who worked for the contractor and claimed this is a routine practice? Did OEPA find diesel in unused drilling mud? Have they found the presence of diesel at ANY other locations where HDD is being used? We certainly had the thought fly through our brains, for only a moment, “What if an anti deliberately put diesel in the mud?” when this story first broke several months ago. But we immediately dismissed the idea. Not even antis would stoop so low as to poison Mother Earth to advance their cause. Or would they?…
    Read More “ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks”

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    Rice Energy Paid $180M for LOLA Energy; CEO Didn’t Want to Sell

    In July MDN brought you the news that Rice Energy had bought out the assets of LOLA Energy (see LOLA Energy Sells Out to Rice Energy, Deal Kept Hush-Hush). NGI’s ace reporter Jamison Cocklin was the first to break the news. Since that time, neither Rice nor the company buying Rice, EQT, have talked about it. In fact, they have refused to comment on it. Last week other news sources observed that Rice Energy’s quarterly update contains information about purchasing LOLA Energy (although even the quarterly update doesn’t use the name LOLA). The interesting thing is that the quarterly update pegs the amount. Rice Energy paid $180 million for the assets of LOLA Energy. LOLA was birthed near the end of 2015, by former EQT executives using $250 million of private equity money from Denham Capital (see New Marcellus/Utica Drilling Company is Born – LOLA Energy). Hmmm. Investors put up $250 million, but two years later the company sells for $180 million. We don’t pretend to be high finance experts, but it sure looks to us like a negative ROI on the transaction. Yet we read claims that “everybody who put in money made money.” How does that work?…

    Update: see a note in the comments. It appears that although $250M was promised by investors, not all of it is paid up front. Thx to MDN reader Venture Energy for enlightening us!
    Read More “Rice Energy Paid $180M for LOLA Energy; CEO Didn’t Want to Sell”

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    PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations

    On July 25th, a Pennsylvania state environmental judge issued an order blocking all underground horizontal directional drilling (HDD) work being done across the state to install the Mariner East 2 (ME2) pipeline (see PA Enviro Judge Puts 2-Week Pause on ME2 Pipeline Drilling). The order stopped drilling at some 55 different locations where ME2 must drill underground–say under a stream or roadway. The order was in response to an appeal by radical Big Green groups, including the anti-fossil fuel Clean Air Council (of Philly), THE Delaware Riverkeeper (Maya van Rossum), and Mountain Watershed Association (see Antis’ Fake Outrage at ME2 Construction “Spills,” Demand Stop Work). As we said at the time, although temporary, the two-week pause is troublesome and problematic because Big Green groups have convinced a DEP judge to hear a case that ultimately aims to stop the ME2 project. The somewhat good news is that last Thursday the same judge lifted the HDD drilling ban for 16 of 55 locations. Bear in mind digging trenches for the pipeline (over 90% of the work being done) continues and is not subject to the judge’s order. The odoriferous Clean Air Council (CAC) is the primary group doing the suing. In an interesting development, mainstream news is reporting Sunoco Logistics Partners (building the pipeline) is in “settlement negotiations” with CAC. Settling what, we don’t know. We’re not even sure why the CAC has standing to bring a lawsuit against the project in the first place…
    Read More “PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations”

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    Why the PA House Must Reject 1-Sided Budget/Tax Deal from Senate

    We’ve noticed a meme, largely started by an Associated Press article endlessly repeated and published in dozens of news outlets across Pennsylvania, that the recent budget deal (with a severance tax) passed by the traitorous Republican-controlled PA Senate “jams a shale tax and industry permits into unhappy package” that now sits before a House that essentially has no choice but to adopt it. Here’s the establishment “received wisdom” in a nutshell: Drillers don’t get what they want (a severance tax), but they do get what environmentalist wackos don’t want (streamlined approvals for permits). And guess what? “That’s politics.” And if you don’t like it, on either side of the equation, you’re an unrealistic dope who doesn’t know anything about politics. We manifestly reject that assertion. Here’s why this deal is one sided–a severance tax only deal. Big Green groups with endless pockets to fund litigation factories are already talking about how if this budget is passed with what they want (a high severance tax) but also with what they don’t want (streamlined approvals for permits), no problem. They’ll just sue to remove the streamlined permits part, leaving drillers with the high severance tax. That’s how “fairness” works for Democrats and antis. Get part of what you want, then litigate the rest–force it on people who don’t want it. That’s the strategy laid out in the AP article claiming both sides are unhappy, implying it’s a good deal because both sides are getting something they want and something they don’t want. The clear signal being sent by environmentalists is that they’ll litigate their way to happiness. Meanwhile the Marcellus industry will get the shaft, which is why the House MUST reject this budget as written…
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    FERC Quorum Finally Restored – Full Speed Ahead on Pipe Projects

    Yesterday the U.S. Senate finally approved Neil Chatterjee and Robert Powelson as the newest commissioners for the Federal Energy Regulatory Commission (FERC). Which means FERC now has a quorum of three voting members and can, once again, begin issuing final approvals for important pipeline projects that are currently stalled waiting for an approval. Among those important projects (in the Marcellus/Utica region) are Dominion’s Atlantic Coast Pipeline, PennEast Pipeline, NEXUS Pipeline and Mountain Valley Pipeline. FERC has not had a quorum of three (or more) voting members since February, when Norman “cry baby” Bay left the commission in a huff in early February over being demoted as chairman of FERC to just regular member (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). President Trump was tardy in appointing two new members. But then New York Sen. Chuck “the schmuck” Schumer decided he would delay it longer, just because he hates Donald Trump. Yesterday the Senate finally took was is called a “unanimous consent” vote, a rubber stamp approving the new members. And now they go to work. Immediately, the sole commissioner left at the agency, Democrat Cheryl LaFleur, tweeted this message: “Happy day! Very excited to work with new Commissioners Chatterjee and Powelson!” We share her enthusiasm!…
    Read More “FERC Quorum Finally Restored – Full Speed Ahead on Pipe Projects”

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    Groundhog Day: Feds Back in Dimock, PA for More Water Testing

    Just when you thought we’d heard the last of “Dimock” and “fracking poisons water” nonsense, the storyline as pushed by mainstream fake news has come roaring back to life–thanks to the Trump Administration. Dimock, Pennsylvania was made famous in Josh Fox’s faux documentary Gasland, which aired on HBO a bizillion times. It was Fox’s 15 minutes of fame. He lied about fracking, painting it as an evil practice that polluted water wells around Dimock. His lies were later exposed by a real documentary called FrackNation (by Phelim McAleer). Over the past 7+ years the Pennsylvania Dept. of Environmental Protection (DEP) as well as the federal Environmental Protection Agency (EPA) and private researchers have tested water wells around Dimock. Repeatedly. For years. The conclusion? Fracking by Cabot Oil & Gas may have (not 100% assured) caused methane to migrate into some of the wells (a charge Cabot strongly refutes). However, at no time did any of government or private agencies testing find any fracking chemicals in any of the wells. Methane migration can be mitigated. It can be fixed. You don’t die from drinking water with methane in it. Most people in Susquehanna County (where Dimock is located) drink water with methane in it every day and have been for over 200 years! Why do you think Cabot’s wells are so productive? They’re in some of the most methane-rich rock in the U.S. The wells of 14 families along the Carter Road area in Dimock have been repeatedly tested–with no fracking chemicals found. Yet the federal Agency for Toxic Substances and Disease Registry (ATSDR), which is a federal public health agency part of the U.S. Department of Health and Human Services (executive branch, which is now under Trump leadership), says they are coming to Dimock to test both water AND air at 25 homes around Dimock. The poster boy for their testing is Ray Kemble, who keeps junk cars on his property and carries a little brown jug around with him to anti-fracking rallies. Kemble has been trying to shake down Cabot for big money for years, with no success, claiming after they began drilling his water well became polluted…
    Read More “Groundhog Day: Feds Back in Dimock, PA for More Water Testing”

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    Rice Energy Investor Sues in Fed Court to Block Sale to EQT

    In June EQT and Rice Energy announced that EQT will buy out and merge in Rice Energy, to create (in EQT) the largest natural gas-producing company in the United States (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). You may see headlines from time to time that say EQT is paying $6.7 billion for Rice. However, EQT is also assuming $1.5 billion worth of Rice Energy debt as part of the deal–so in our book, the total price paid is $8.2 billion, not $6.7 billion. A few weeks after the announced merger, so-called “activist investor” (i.e. corporate raider) Jana Partners, in league with the Cohen family (Atlas Energy) started a proxy fight to block EQT’s takover/merger with Rice Energy (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Instead of buying Rice, Jana is demanding that EQT split itself into two companies–upstream (drilling) and midstream (pipelines). Experts don’t give Jana much of a chance. However, we now have opposition on the other side of the isle–from a disgruntled investor in Rice Energy. On Wednesday, Rice Energy investor Patrick Gordon filed a lawsuit in Delaware federal court alleging that Rice, as part of the agreed merger, submitted incomplete paperwork (called an S-4) that “failed to include necessary financial information that would allow shareholders to make an informed decision when voting on the proposed sale to EQT.” Gordon says Rice’s sale price isn’t high enough. Gordon wants the court to stop a shareholder vote on the deal until an amended S-4 is filed, giving what Gordon says is the full financial picture…
    Read More “Rice Energy Investor Sues in Fed Court to Block Sale to EQT”

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    PA Senate Sneaks in Provision Hurting Landowners w/Old Leases

    What’s this? The Pennsylvania State Senate, which is controlled by the Republican Party, has added insult to injury. We’ve already told you about Republican traitors in the Senate who sold out their House counterparts by voting for a disastrous severance tax to raise money to give away to teachers’ unions (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Little did we know they also sneaked in, in the dead of night, a provision in the budget bill that will make it harder for PA landowners with old oil and gas leases to renegotiate those leases. Sometimes landowners have old oil and gas wells on their property, drilled decades ago before horizontal drilling and fracking were combined. And those leases were signed for pennies on the dollar. These days when shale drillers come calling, landowners can often command thousands of dollars per acre in signing bonuses. But a provision in the fiscal code, passed as part of the budget the traitorous Senate passed, would limit the ability of landowners to renegotiate those old leases, allowing drillers to revive expired leases and not pay new lease bonuses…
    Read More “PA Senate Sneaks in Provision Hurting Landowners w/Old Leases”

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    Court Clears Path for Atlantic Sunrise Pipe to Begin Work in PA

    Atlantic Sunrise route – click for larger version

    Williams and their Atlantic Sunrise Pipeline project are just a few properties away from having easements for all of the properties they need in Pennsylvania, thanks to a judge in the U.S. Middle District of PA and his decision yesterday. Judge Matthew Brann gave Transco Pipeline (the pipeline getting extended with the Atlantic Sunrise project) access to seven hold-out properties in Lebanon, Northumberland, Columbia and Luzerne counties. There are still a couple of holdouts left in Lancaster and Columbia counties, cases which are in a different court. Staking of workspace boundaries will begin in 10 days, on August 14th. Construction, things like clearing and grading the right-of-way, will begin in mid-September. Obviously Williams believes the state DEP is about to grant stream crossing permits for the project, which they still need. The good news is that the courts are backing Atlantic Sunrise, and work on the pipeline will begin in days…
    Read More “Court Clears Path for Atlantic Sunrise Pipe to Begin Work in PA”

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    PA Gov Wolf Said He Thinks House Will Support Severance Tax

    We suspect Pennsylvania Gov. Tom Wolf (a Democrat) may be smoking some of the state’s medical marijuana–sampling the goods, just to be sure it’s safe, ya know. During an interview with a PA public radio station yesterday, commenting on the horrible budget bill passed by traitorous Senate Republicans, Wolf said, “I believe that the House will support the Marcellus Shale tax as well.” Notice the Freudian slip? Wolf WANTS to target the Marcellus industry. He called it a “Marcellus Shale tax” as opposed to a severance tax. The Dems are attempting to conflate a “Marcellus Shale tax” with things like a “cigarette tax.” Nasty, vile stuff–but if people want it, tax ’em to hell and back. RINOs in the Senate fell for the severance tax trap sprung by Wolf and the Dems. We predict the House will NOT pass the Marcellus tax, Mr. Wolf. We don’t smoke weed–so we have a clear head about these things…
    Read More “PA Gov Wolf Said He Thinks House Will Support Severance Tax”

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    NY DEC Holds Sham “Hearing” for Power Plant Pipeline

    New York’s corrupted Dept. of Environmental Conservation (DEC) is running scared. For 19 months the DEC has intentionally delayed granting a tiny, 9-mile spur Millennium Pipeline wants to build in Orange County, NY the necessary federal 401 stream crossing permit it needs. Millennium took the DEC to federal court, but the court refused to get involved, telling Millennium if the DEC is delaying, the Federal Energy Regulatory Commission (FERC) can jump in and override the DEC (see DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay). So that’s what Millennium did. They asked FERC to grant the stream crossing permits themselves (see Showdown: Millennium Asks FERC for Permission to Ignore NY DEC). Sensing they are now in a death spiral and will lose control over not only the Millennium project, but also other projects like the Constitution Pipeline and Northern Access projects the DEC has been blocking, the DEC responded and asked FERC to wait until August 30th before granting the certificate–so the DEC could grant it (or not) themselves (see Corrupt NY DEC Fires Back at Millennium, Claims Deadline is Aug 30). So the DEC held a public hearing Wednesday night. A sham. Kabuki theater. It was the DEC going through the motions before they get off their rear-ends and grant the certificate they could have granted more than a year ago. The public hearing in Wawayanda, NY did not disappoint, with insane anti-fossil fuelers parading before the microphones and cameras, predicting the end of the world if this 9-mile pipeline to feed a gas-fired power plant gets built…
    Read More “NY DEC Holds Sham “Hearing” for Power Plant Pipeline”

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    GreenHunter Lawsuit Against Former Employees Dismissed

    In November 2015 MDN reported on a lawsuit filed by GreenHunter Resources (filed in October 2015) against two former GreenHunter employees and a competitor (see GreenHunter Sues 2 Former VPs + OH Competitor for Conspiracy). The lawsuit alleged that John Jack, former vice president of Appalachia operations for GreenHunter, and Noble “Rick” Zickefoose, former vice president and operations manager at GreenHunter left the company and subsequently shared privileged company secrets with Dean Grose, CEO of Comtech Industries and a principle with Water Energy Services (both companies competitors of GreenHunter). At the time we said it appeared GreenHunter had a strong case. We also said: “Of course there’s always two sides in these cases–so we must ‘presume innocence’ until the court finds otherwise.” Prescient words. From the beginning, all three defendants strongly maintained their innocence. Rick Zickefoose contacted MDN to let us know he has worked tirelessly to clear his good name. Rick told MDN, “I have been employed in the oil and gas industry of the Appalachian basin for more than 37 years. In the industry your reputation is everything.” He, and the other defendants, fought hard. In June their efforts were rewarded when the case was dismissed, “with prejudice” (meaning “permanently”). Rick and the other defendants are now cleared, their names and good reputations restored…
    Read More “GreenHunter Lawsuit Against Former Employees Dismissed”

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    Dominion: Cove Point LNG 95% Complete, Online in 4Q17

    Dominion Energy released its second quarter 2017 update and held a conference call yesterday to discuss those results. Dominion is a huge producer and transporter of energy with its fingers in a lot pies. Dominion produces 26,200 megawatts of electricity, owns 15,000 miles of natural gas transmission, gathering and storage pipelines, and owns 6,600 miles of electric transmission lines. Dominion operates one of the nation’s largest natural gas storage systems with 1 trillion cubic feet of storage capacity. They also are a local utility company, serving more than 6 million customers. Yeah, big company, big deal. However, our interest in Dominion is fairly narrow: They are building an LNG (liquefied natural gas) export facility along the shoreline of Maryland. The Cove Point LNG facility will export 1.8 billion cubic feet per day (Bcf/d) of Marcellus/Utica Shale gas–to India and Japan. On yesterday’s call, Dominion CEO Tom Farrell said Cove Point is “95% done” and “remains on-time and on-budget” to begin operations by the end of this year. That’s great news! The other thing we closely watch with Dominion is the $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. With respect to ACP, Farrell said they’ve already purchased 84% of the materials needed for the project and that it remains “on-track to start construction later this year.” Farrell said the pipeline should be done in the “second half of 2019.” More good news! Here’s the latest from energy giant Dominion Energy…
    Read More “Dominion: Cove Point LNG 95% Complete, Online in 4Q17”

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    Shell Conducts 4th Meet-n-Greet with Residents Near Cracker Site

    Shell officials held the fourth (so far) public meeting in Beaver, PA to talk with local residents about the mammoth, $6 billion ethane cracker plant the company is building in their midst. For the most part, the event was uneventful. More than 150 people came out to hear what the petrochemical giant had to say. A table at the event held polyethylene pellets–the stuff that will be manufactured by the plant. Also on the table were a variety of products made from those pellets, including bottles, food packaging and more. One local resident opposed to the plant told a reporter she had to restrain her potty mouth because Shell officials would not answer her questions from the floor–in front of the crowd. Shell (and others in the o&g industry) have wised up. They post representatives at tables who are happy to answer private questions privately, but they don’t throw open the floor to antis who want to bleat and blat in front of an audience. We think it’s a wise precaution. The woman could get her questions answered, and express her unhappiness–but she wanted to do it in front of a crowd and in front of cameras and microphones. No thanks. Organize your own meeting if you want to do that…
    Read More “Shell Conducts 4th Meet-n-Greet with Residents Near Cracker Site”

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    Judge Hears Arguments For/Against Broome Virtual Pipe, Delay Stays

    Yesterday both sides were in court in Broome County, NY to put forward their best arguments for why a natural gas transfer station (i.e. virtual pipeline) project in the Town of Fenton, near Binghamton, should (or should not) get built. We’ve covered this story from the beginning–because we like virtual pipelines which get natural gas to customers who aren’t blessed to live near a pipeline, and because we live about 10 miles from the proposed site. NG Advantage wants to build a virtual pipeline operation in a suburb of Binghamton. The location NG picked, after considering up to six other locations in the region, was selected because of it’s proximity to major highways, proximity to the Millennium Pipeline, and availability of high-power electric lines. A virtual pipeline is nothing more than a compressor plant (series of compressor plants) that grabs gas from a pipeline, in this case the Millennium, and compresses it and loads it onto special tractor trailers that then deliver the gas to industrial customers like manufacturing plants, hospitals, and even small regional gas distribution systems servicing residential homes. The location NG selected, in the Town of Fenton (within spitting distance of residential communities Hillcrest and Port Dickinson) was approved by the Town of Fenton after a detailed review. The area NG selected is zoned industrial and is, in fact, a former dump site. However, residents from nearby neighborhoods in Hillcrest and Port Dick were not aware of the project (so they claim) and when construction began to clear the dump site, and residents learned what was going to be built at the site, some of them demanded court action to oppose it. Two court cases have been filed and a local judge has temporarily stopped construction at the site. Yesterday that judge heard arguments for and against. NG Advantage CEO Rico Biasetti was encouraged by the judges questions…
    Read More “Judge Hears Arguments For/Against Broome Virtual Pipe, Delay Stays”

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    Shell Needs 450 Welders to Work on Ethane Cracker Plant

    Good news if you’re a welder, or interested in a welding career, and you live in southwestern Pennsylvania. Shell needs you. Shell is in the process of building a massive, $6 billion ethane cracker plant in Beaver County, PA (northwest of Pittsburgh). Cracker plants have lots of pipes that need to be welded as the plant goes up. While these jobs are not long-term, as in “the rest of you career,” they’re long enough, likely lasting several years. Steamfitters Local 449 is right now recruiting new apprentices, offering a free 17-week apprentice training program. Local 449 is holding an open house this Saturday…
    Read More “Shell Needs 450 Welders to Work on Ethane Cracker Plant”