Industrywide Issues

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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…
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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”

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    OH Court Rules on ‘Paying Quantities’ Affecting Lease Termination

    A recent ruling from Ohio’s Seventh District Court of Appeals has the potential to affect conventional and unconventional (shale) leases. As with most legal rulings, this one is a bit complex. We’ll do our best to summarize. In Ohio, most oil and gas leases have both a primary term and a secondary term. The primary term is that period of time a driller has to locate and drill for oil or gas–typically five years. The secondary term is that period of time (which can last for decades) under which oil and gas is produced from the well. In most lease contracts, as long as the well is producing in “paying quantities” the lease remains in effect. But when the well does not produce in paying quantities, the lease is terminated and the landowner can seek a new lease. Of course, the definition of “paying quantities” is key. In a previous case, the Ohio Supreme Court defined paying quantities. However, the recent Seventh District Court case, Paulus v. Beck Energy Corp., added to, or should we say “refined” the definition provided by the Supreme Court by providing guidance on what items may be considered when determining paying quantities and lack of production in Ohio…
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    Anti-Pipe Objections Aired in Wrong Forum in Morgan County, WV

    As MDN has previously reported, Mountaineer XPress Pipeline includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Just last month the Federal Energy Regulatory Commission (FERC) gave Moutaineer XPress and its companion project, Gulf XPress, a favorable final environmental impact statement (see FERC Issues Favorable Final EIS for Mountaineer/Gulf XPress Pipes). The only thing left now is for FERC to issue a certificate for construction to begin–which won’t happen until Sen. Chuck Schumer and obstructionist Democrats allow a Senate vote on new commissioners, to restore a voting quorum at FERC. Don’t hold your breath. At any rate, a few local residents in Morgan County, WV appeared before the Morgan County Commission last night to complain about the project. The residents were there at the prompting of several Big Green groups, who organized the effort. Problem is, Morgan County can’t do a thing about the pipeline project. It was the wrong forum to complain in, but that didn’t stop them…
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    Nova Scotia’s Bear Head LNG Sees Surge of Interest

    For the past few years, MDN has tracked the progress of an LNG export plant planned for the eastern shore of Nova Scotia, the Bear Head LNG project (see our Bear Head LNG stories here). Of all the Canadian LNG export projects, Bear Head seems to have the most momentum. The project has received most of the necessary permits it needs to proceed. In fact, an official from the project says it is “shovel-ready” and can begin at any time. However, they aren’t ready to begin quite yet. The reason we track the project is because the most probable source of natural gas to feed the plant would come from the Marcellus Shale via the Maritimes & Northeast pipeline, converted to be bidirectional (see FERC Approves Atlantic Bridge Project for New England/Canada). However, the recent uptick in interest in Bear Head is not coming from the Marcellus, but because another LNG project on Canada’s West Coast was canceled last week. That has gas producers in Western Canada expressing interesting in piping their gas cross-country to the Bear Head project…
    Read More “Nova Scotia’s Bear Head LNG Sees Surge of Interest”

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    Lancaster Anti-Pipe Protesters Sell Protest Camp to Pipeline Co.

    In March, MDN told you about a small group of radical protesters who established a protest “camp” on a private farm along the path of the Williams $3 billion, 198-mile Atlantic Sunrise Pipeline in Lancaster County, PA (see Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster). Some of the so-called protesters had previously participated in illegal protests in Standing Rock, North Dakota, against the Dakota Access Pipeline being built there. Channeling that protest, the crazies in Lancaster stenciled “WELCOME TO THE STAND” across the side of the barn on the farm where they decided to form a new/illegal protest camp–hinting at what’s to come. The protesters were using the farm location to stash food, water, toilet paper, condoms…whatever. Hippie protesters need supplies, man. Well guess what? The farm’s owners, sympathetic to the protesters’ aim to block Atlantic Sunrise–just sold their farm to Atlantic Sunrise. How’s that for principled protest? Yep–gotta stop that evil pipeline from ruinin’ the pristine cornfields in Lancaster County–unless the price is right. And then it doesn’t matter…
    Read More “Lancaster Anti-Pipe Protesters Sell Protest Camp to Pipeline Co.”

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    Atlantic Sunrise Pipe Introduces App to Funnel Work to Local Biz

    There’s an app for that! Williams is launching an app (for smartphones) latter this month to connect Williams contractors with local businesses–to ensure as much of the work (and supplies) as possible is sourced from local businesses for the Atlantic Sunrise Pipeline project. This is a great sign that Williams believes they are about to receive final permits from the foot-dragging Pennsylvania Dept. of Environmental Protection (DEP) to begin work. In August, Williams will launch WillShop Local, a digital application designed to connect local businesses with contractors and construction crews working in the project area. The app is not for local businesses but for the contractors and workers working on the pipeline to locate local suppliers. So how do you, as a local business, get listed on the app? Glad you asked! Just fill out this form online. Here’s the lowdown on getting your piece of the $3 billion pie when Williams begins building Atlantic Sunrise…
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    Rover Drilling Contractor that Spilled Kept ‘Incomplete Records’

    Rover 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 fluid (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 swamp (i.e. “wetland”) next to the river. The Ohio Environmental Protection Agency (OEPA) investigated the spill (following a tip) and claimed to find the presence of diesel fuel in the spilled mud (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). OEPA reported their findings to FERC and FERC launched an investigation into the Tuscarawas spill. FERC hired engineering firm J.D. Hair & Associates to review what went wrong. The Hair report is in. The reviewers can’t say with any confidence whether or not Rover (Energy Transfer) and the contractor doing the underground horizontal direction drilling (HDD) at Tuscarawas, Pretec Directional Drilling, followed project requirements. Why? Because of “very limited” documentation. That is, poor record-keeping. The 425-page report (full copy below) does offer some theories as to why Pretec’s HDD drilling leaked: Pretec encountered “sticky clay” while drilling, so they doubled the amount of drilling mud to clean the cutter. The extra pressure forced the mud out of cracks in the ground–and resulted in a 2 million gallon spill…
    Read More “Rover Drilling Contractor that Spilled Kept ‘Incomplete Records’”

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    ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company

    Last Friday MDN told you about two Democrat backbenchers trying to make trouble for Energy Transfer (via Rover Pipeline), as well as make trouble for the Federal Energy Regulatory Commission (see Two Democrat Backbenchers Try to Interfere in Rover Pipe, FERC). Sen. Maria Cantwell (from Washington State) and Congressman Frank Pallone (from New Jersey) are using recent problems with the construction of the $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, to target Energy Transfer and FERC. To be sure, Rover has had its issues–with drilling mud spills, water in trenches and knocking down a dilapidated old house that was on a list of historic sites. In a surprising (and frankly, stupid) move, Energy Transfer’s CEO Kelcy Warren wrote a letter responding to lightweights Cantwell and Pallone. He calls a FERC investigation of his company (which is part of what Cantwell and Pallone are demanding), based on problems with Rover, to be “unprecedented” and “extrajudicial.” Warren is right, of course. But he’s not the one who should be making the case. It makes Energy Transfer seem defensive. In the case of backbenchers Cantwell and Pallone, best just to ignore them…
    Read More “ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company”

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    Calif. Microturbine Company Sells First Unit in Utica Shale

    MDN has highlighted Capstone Turbine Corporation, a California company that manufactures small electric-generating plants that run on natural gas, several times in the past. Our most recent story (in February) shared the news that Capstone had sold three more of their “microturbines” to midstreamers in the Marcellus Shale play (see Calif. Microturbine Company Sells More Units in the Marcellus). Capstone is back with another announcement. This time they’ve sold one of their newest model microturbines to an exploration & production company (i.e. driller) in the Utica Shale–to someone operating in Monroe County, OH. It is, according to Capstone, their first sale to someone in the Utica region…
    Read More “Calif. Microturbine Company Sells First Unit in Utica Shale”

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    DTE Energy Files to Build New Natgas-Fired Elec Plant in Michigan

    Proposed DTE Energy natgas-fired electric plant for Michigan

    DTE Energy has just filed paperwork in Michigan to build a new “state-of-the-art” natural gas-fired power plant in St. Clair County. The gas-fired plant would produce 1,100 megawatts of electricity, enough to power 850,000 homes. As with all of these kinds of projects, there are MANY regulatory hoops to jump through. If all goes according to plan, the new plant will go online five years from now–in 2022. The plant will cost nearly $1 billion to build and employ “hundreds” during its construction. It will offset, in part, three coal-fired plants set to be retired by 2023. While DTE makes no mention of the source of natgas that will feed it, two Marcellus/Utica pipelines–Rover and NEXUS–will cross parts of Michigan. It’s not much of a stretch to imagine that at least some (perhaps all) of the natural gas that will fire this plant will come from our region…
    Read More “DTE Energy Files to Build New Natgas-Fired Elec Plant in Michigan”