Coal Supporters Still Trying to Stop WV NatGas Electric Plants
The West Virginia Public Service Commission will host a public hearing tomorrow on a proposed power plant in Brooke County, WV. The 750-megawatt Marcellus-fired electric plant will be built by Energy Solutions Consortium–the father and son team of Andrew and Matthew Dorn (based in Buffalo, NY). The Dorns are currently building another gas-fired plant–in Marshall County (see Progress for 3 WV NatGas Electric Plants; 1 Breaks Ground in 2016). In addition to Marshall and Brooke, the Dorns plan to build a third plant in Harrison County. The locals are on board with this project, which will generate millions in tax revenue and put some 400 people to work during construction. In March the Brooke County Commission and Brooke County Board of Education approved a PILOT (payment in lieu of taxes) for the project–meaning the plant will pay out $27.3 million to the county over 30 years. However, as has happened in the past, some misguided folks who advocate for (and work in) the coal industry are opposing the project. They think gas-fired electric plants will lead to layoffs in the coal industry…
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Anti-fossil fuelers, aided and abetted by liberal local media, continues the drumbeat to pressure the Virginia Dept. of Environmental Quality to either block, or greatly slow down, approvals needed to build both the $5 billion, 594-mile Dominion Atlantic Coast Pipeline (ACP) project and the $3.5 billion, 301-mile Mountain Valley Pipeline (MVP). Both pipelines start in West Virginia. ACP crosses through Virginia and stretches into North Caroline. MVP terminates in southern Virginia. Some oppose the projects due to an insane hatred of fossil fuels (the same fossil fuels that make their existence and protest possible). Others don’t want a pipeline cutting across their favorite horse pasture. Ruins the look, ya know. There have been a blizzard of lawsuits and legal actions to try and stop both projects (see 
Fantastic news to report! Dominion has asked the Federal Energy Regulatory Commission (FERC) for permission to begin flowing feed gas (for testing purposes) to parts of the Cove Point LNG export facility. We are now getting close to startup at the facility, which is supposed to go online in the fourth quarter of this year. Cove Point sits along the coast of Maryland. Dominion began work on the $3.5 billion plant in 2015. When complete, the plant will liquefy and export 1.8 billion cubic feet per day (Bcf/d) of Marcellus/Utica Shale gas to India and Japan. Currently there is only one export facility in the U.S. in operation, along the coast of Louisiana (Cheniere Energy’s Sabine Pass). That one facility has fundamentally changed the economics of LNG (liquefied natural gas) here at home and around the world. Just imagine what another 1.8 Bcf/d will do! And it’s ALL from our region. Here’s more about the good news that Cove Point is ready to begin testing…
A national group of antis calling themselves “conservative” are attempting to meddle in the affairs of Pennsylvania. If you’ve been reading MDN for any time, you know about the current huge, stinking mess of a budget in Pennsylvania. Republicans, which control both the House and Senate, passed an unbalanced budget of $32 billion. Problem is, there’s only $30 billion of projected revenue. So after passing the spending part of the budget, they now have to “come up with” $2 billion to cover the difference. The pressure has been intense to punish the successful Marcellus industry by stealing even more of their money (PA already takes an overly generous portion of their profits). Senate Republicans caved to the pressure and floated a spending plan that includes a severance tax (see 
In a disappointing, but perhaps not all that unexpected decision (full copy below), the U.S. Court of Appeals for the Second Circuit on Friday ruled against the Constitution Pipeline and their lawsuit against the Cuomo-corrupted New York Dept. of Environmental Conservation (DEC). The DEC dithered, for years, on a decision about whether or not to grant stream-crossing permits (Section 401 permits, a federal Clean Water Act thing) to the Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. The Federal Energy Regulatory Commission (FERC) authorized the project in 2014. Since that time the DEC delayed, and eventually denied permits for the project (see 
The West Virginia Legislature has appointed a new Joint Committee on Natural Gas Development, composed of Senators and Delegates, to put their collective heads together to see how they can encourage more oil and gas development in the Mountain State. The committee will meet tomorrow for the first time. The effort is being supported by the West Virginia Oil and Natural Gas Association (WVONGA). In general, it certainly seems like a good idea–WV needs more drilling. However, WVONGA plans to use the committee as a platform to push its “modernized mineral efficiency laws”–i.e. forced pooling lite. As we reported last week, WVONGA is making an all-out push for new forced pooling laws in 2018 (see 
We always find it sad when a company builds a manufacturing plant in another country, closing one here at home (and firing the people who worked there). Such is the case in Carroll County, OH. Automotive supplier dlhBowles recently opened a 280,000-square-foot assembly plant in Reynosa, Mexico–and closed a plant in Carroll County. The company manufactures things like hoses and nozzles for windshield washer systems. Reynosa says closing the Carroll plant and laying off the 94 people who worked there is not “directly related” to opening the Mexico plant. Right. But officials in Carroll aren’t bitter. They believe the Utica Shale and various pipelines running through the area will result in new plastics companies (and other types of companies in the downstream) locating in Carroll. Buh bye Reynosa. Hello new manufacturers with the foresight and intelligence to set up shop in red-hot eastern Ohio…
Politicians are once again demagoguing and attempting to demonize “Big Oil & Gas” over the taxation issue. No, we’re not talking about severance taxes. We’re talking about accounting deductions that oil and gas companies take to reflect depletion of assets. Flying under the banner of “eliminating tax loopholes,” some politicians want to strip away deductions from oil and gas companies–while leaving the same deductions in place for other industries. It is the worst kind of sleazy attack on the o&g industry. William Shughart, professor at Utah State University, brings us up to speed on the latest under-the-radar attack on the shale industry…
The Energy Equipment and Infrastructure Alliance (EEIA) announced last week they have launched “Energy Builders,” a new community-based coalition of workers, families and businesses dedicated to educating friends, neighbors and elected officials about the importance and benefits of energy infrastructure and its ongoing development. Energy Builders came together in reaction to paid Big Green protesters being dropped into local communities spreading fear, misinformation and untruths about new energy delivery projects. Americans deserve the best, safest, most modern and secure energy delivery systems in our communities. Energy Builders promotes that. America is enjoying an energy revolution, where innovation and new discoveries of clean and affordable fuels like natural gas are cutting consumer prices, utility bills, and air pollution. We need to modernize and expand our energy infrastructure and delivery systems to ensure that all families, workers and businesses get their fair share of the rewards. We say, it’s about time to fight back against the paid protesters with a radical (WAY outside the mainstream) agenda…
The Utica Shale’s economic impact on Ohio has been nothing short of “staggering.” In fact the shale revolution has fundamentally changed the United States over the past 10 years. But nowhere is it more obvious than in the Buckeye State. Our friends at Energy in Depth have assembled the results of several research studies of just how much shale has impacted Ohio, and summarized it in a handy infographic download (below). The short version is this: through the first quarter of 2016, if you add the number all up thus far, the “upstream” (drilling) industry in Ohio has invested a whopping $39.2 billion. Amazing! But that’s not all. The “midstream” (pipeline) industry has invested $13.7 billion. But wait! There’s more! The downstream (petrochemicals) industry has invested, so far, $15.3 billion. And there’s far more downstream investment coming, especially if/when PTT Global Chemical decides to move forward with building a $5 billion ethane cracker facility in Belmont County. When you add it all up, the Utica industry has invested $68.2 billion SO FAR. And that’s all private money–not taxpayer money. In fact, millions of dollars have flowed into communities from taxes on the industry. It’s truly hard to put into words just how big a deal this is…
For the past 2+ years MDN has chronicled the journey of Competitive Power Ventures (CPV) to build a $900 million Marcellus gas-fired electric plant in Wawayanda, NY, called the Valley Energy Center. Early on the project faced court challenges, but a judge gave final approval to build it in September 2015 (see 
Yes, lack of pipelines in the Marcellus/Utica does hurt many people and businesses. When drillers can’t get their product to markets that fetch higher prices, the existing markets where they sell becomes saturated and the price drops. That means less money in royalty payments for landowners, less money in the pockets of drilling companies, less drilling until prices go up again, fewer jobs, less tax revenue flowing to the state and municipalities. Etc. You get the idea. It also can impact those who trade natural gas futures. Ginormous investment bank Goldman Sachs markets and trades natural gas–one of the world’s biggest natgas traders. The company “bet wrong” on which way the price of gas would go in the Marcellus/Utica, believing it would go higher with projects like Rover Pipeline coming online. Instead, Rover and other projects in our region hit obstacles and delays. And the price of gas stayed low. It cost Goldman $100 million this spring–turning in the worst performance ever for its commodities trading unit. Yes, we understand, it’s hard to shed a tear for a big company like Goldman. After all, they were rolling the dice in the Wall Street casino. Our point remains: When pipelines don’t get built, there’s a very real cost associated–a cost that ripples throughout the economy from the biggest players (Goldman) to the smallest players (landowners)…