Industrywide Issues

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    Liberal DC Court Tells EPA It MUST Adopt Obama Methane Rules

    The federal Environmental Protection Agency (EPA) wisely move to begin the process of rolling back Obama-era regulations on methane, designed to regulate the oil and gas industry, last month (see Beginning of the End: EPA Issues 90-Day Stay for Methane Rule). Big Green groups with deep pockets sued a few days later, claiming the agency that instituted the rules in the first place (the EPA) shouldn’t be able to roll back the rules they themselves made up. Egregious, over-reaching rules. A liberal federal court in DC somewhat agreed, telling the EPA they have to justify themselves (see Liberal DC Court Asks EPA to Respond to Lawsuit by Radical Enviros). Now, the liberal DC court has decided the EPA can’t un-decide what it previously decided, even though it clearly has the right and power to do so. On Monday, the U.S. Kangaroo Court of Appeals for the District of Columbia Circuit ordered to EPA to move forward with the Obama-era methane rules…
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    Fracker Keane Group Completes Buyout of RockPile Energy for $276M

    Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January 2016, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. The buyout, and Keane’s hard work, bore fruit. Last December the privately-held company announced it will go public with an initial public offering (IPO) of stock, hoping to raise $287.5 million with the IPO (see Oilfield Services Co. Keane Group Floats $288M IPO). Then in May of this year, Keane announced it is expanding again, buying out fracker RockPile Energy Services for $284.5 million (see Fracker Keane Group Continues Expansion, Buys RockPile Energy). The deal has closed, although for slightly less money than the original announcement. RockPile is no more after merging with Keane for $276 million. RockPile’s former CEO, Curt Dacar, is now the COO (Chief Commercial Officer) at Keane…
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    Fossil Fuels Continue to Dominate American Energy – 81% in 2016

    Here’s a fact: Fossil fuels have provided more than 80% of total U.S. energy consumption for more than 100 years. Here’s another fact: Fossil fuels provided 81% of America’s energy consumption in 2016–last year. What about all those precious so-called renewables? They provided a little over 10% of our energy needs. However, don’t confuse “renewables” with “solar and wind,” because renewables also include biomass and hydro. If you look only at wind and solar, they provided around 2.5-3% of our overall energy needs last year. When some crackpot claims we could just flip a switch and begin using all renewables anytime before the next 100 years, you know they’re delusional. Ain’t, gonna, happen. You read it here first…
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    Judge Orders “Eco-Terrorists” to Vacate PA Property, Allow Pipe

    MDN has extensively covered the story of a family in Huntingdon County, PA radicalized by the Big Green movement into opposing the Mariner East 2 pipeline across their property. The Gerhart family, with the assistance of what Sunoco Logistics Partners calls “eco-terrorists,” have pledged to illegally block construction of the pipeline. So a few weeks ago Sunoco asked a Huntingdon County judge to grant an injunction against the Gerharts AND the interloping eco-terrorists–to have them forcibly removed if they attempt to stop construction which is about to begin (see Sunoco Seeks Injunction Against Radicalized ME2 Pipe Protesters). The good news is that late last week the judge granted the injunction. The Gerharts and their eco-terrorist friends will sit their butts in jail if they scarper up a tree to sit, or stand in the way when the bulldozers rev their engines…
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    ME2 Begins Building Pipeline in Lancaster County, PA

    Click for larger version – Clay & West Cocalico in northern tip

    Mariner East 2 (ME2), Sunoco Logistics Partner’s 350-mile NGL (natural gas liquids) pipeline that will run from Eastern Ohio to the Marcus Hook refinery near Philadelphia, has begun construction in northern Lancaster County, PA. Currently the work is getting done in the townships of Clay and West Cocalico. Which is great news. Here’s the even bigger news, that most mainstream news outlets are not reporting: “Officials for the two townships…[said] the pipeline faced no opposition.” Huh. Who woulda thunk? Lancaster County, home of the nutjobs who have threatened to establish an eco-terror camp to block Williams’ natural gas pipeline called Atlantic Sunrise–and yet with ME2, an NGL pipeline, no opposition. Nothing. Of course there are still pockets of resistance to ME2 (see today’s lead story about the eco-terrorists in Huntingdon County). But perhaps lack of opposition to ME2 in Lancaster County is a sign that Big Green is running out of steam (or money to pay protesters)…
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    Mich. Official Says She’ll Stand in Front of Dozer to Stop Rover

    A liberal Democrat County from the Washtenaw County, Mich. Board of Commissioners, someone who obviously ignores the rule of law, has pledged to break the law in her misguided attempt to stop Energy Transfer’s Rover Pipeline project from coming through her county. Lib Dems often like to pick and choose which laws they will obey and which they’ll ignore, so we’re not surprised by the mouthy reaction from Commissioner Michelle Deatrick, D-Superior Township. She’s like many other radical anti-fossil fuelers. Michelle is an Al Gore fan and has apparently overdosed on trailers for Gore’s forthcoming Inconvenient Truth Part Deux fictional flick, called “Truth to Power,” because that’s the exact phase she used at a recent board meeting. Here’s what mouthy Michelle had to say…
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    Marcellus Gas Now Powers Mohegan Sun Casino in the Poconos

    Mohegan Sun Pocono CEO & President, Anthony Carlucci, UGI Energy Services President, Joe Hartz, Director of Capital Expenditure for Mohegan Gaming & Entertainment, Jeff Seidel, and UGI Business Development Manager, Steve Johnson, all spoke at and celebrated this milestone. In attendance also, was Cassandra Coleman with the Pennsylvania Governor’s office and Chief of Staff for Pennsylvania Rep. Mike Carroll, Ron Ralston.
    Click for larger version

    The Mohegan Sun Pocono casino, located near Wilkes-Barre, PA, is now powered by Marcellus Shale gas. On June 20 casino officials along with utility giant UGI and local/state politicians gathered to unveil an all-new co-generation energy plant at the casino. The plant uses Marcellus Shale gas to create electricity. The resulting heat is also trapped and used, to heat water, etc. (the “co” in co-generation). The plant cost $3 million to build. Roughly $1 million from a grant from the Commonwealth Financing Authority. The new plant reduces the Mohegan Sun Pocono casino’s so-called carbon footprint by 3,900 metric tons annually–it’s like taking 820 cars off the road. Here’s the story of how a fossil fuel–Marcellus Shale gas–is helping to clean up the environment, and make it cheaper to run the slot machines, at the same time…
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    Velocys Leaving Shale Gas GTL Behind, Moving to Biomass BTL

    We’ve written a fair bit about Velocys, a UK-based gas-to-liquids (GTL) company, over the past several years (see our stories here). Velocys previously purchased a GTL project planned for Ashtabula, OH, receiving all necessary permits to begin construction, but then put the project on indefinite hold in August 2016 (see Ashtabula, OH GTL Plant on Hold “Indefinitely”). GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and waxes. They are a potential new market for an overabundance of supply in the Marcellus/Utica–hence our keen interest in companies like Velocys. Last December the company released a plan to “jump-start” the company (see GTL Vendor Velocys Releases Plan to Jump-Start the Company). Nowhere did we see mention that Velocys was thinking about abandoning their GTL focus, but NGI is now reporting the company is “suspending” its work and focus on GTL and instead is pivoting to work on “woody” biomass-to-liquids (BTL) instead. What’s woody biomass? Turning discarded trees and tree limbs into things like diesel fuel. Why the pivot? Because the company thinks it can score big money from the government to fund it…
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    Big Chemical Continues to Lobby Trump Admin to Limit LNG Exports

    Although we understand self-interest and wanting to protect one’s profit margin, we continue to be distressed that some of the biggest chemical companies in the world (meaning in the U.S.) are still actively trying to block approvals for more LNG export facilities. Why? They want the natural gas they buy (in very large quantities) to be as cheap as possible. In April, Big Chemical–companies like Dow Corning, BASF, Eastman Chemical and others–via their trade association Industrial Energy Consumers of America (IECA) launched an effort to try and persuade Energy Secretary Rick Perry and the Trump Administration to create barriers to exports of natural gas, ’cause you know, it’s “America First” now baby, and we want that gas all to ourselves (see Big Chemical Selfishly Wants to Block NatGas Exports). Even though last week was “Energy Week” at the White House, and Trump announced even more LNG exports on the way (to South Korea), the IECA is still keeping up the pressure. They sent another letter warning that more LNG exports will put Trump’s agenda of more American jobs in danger…
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    Enbridge Withdraws $3B Access Northeast Pipeline Application

    Last December Spectra Energy pushed the pause button on their Access Northeast Pipeline project, a roughly $3 billion project in New England to connect four existing pipeline systems (with enhancements): Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast (see Spectra Energy Puts Access Northeast Pipe to New England on Hold). Spectra’s original strategy was to bring natural gas to New England by cutting deals with electric companies who need the gas to produce cheaper electricity at their natgas-fired power generation plants. However, the green environmental Nazis came out in force against the plan, (sadly) aided and abetted by Spectra’s competitors, and those plans are now in ruins with three states blocking any such plans. So Spectra changed strategies, targeting local natural gas distribution companies (LDCs) as potential customers (see Spectra Energy Changes Strategy re New England Pipeline). Spectra needs customers to sign on the dotted line–committing to long-term contracts–before they can raise the funding and build the project, so they pushed the pause button last December. Since that time, Spectra completed selling itself to Enbridge (see Spectra Energy is No More – $28B Merger with Enbridge Complete). So just to confuse things, the Access Northeast project is now an Enbridge project. Yesterday Enbridge sent a letter to the Federal Energy Regulatory Commission, the agency that oversees such projects, to officially withdraw the application. But the project is NOT dead. Enbridge says they will be back to file again–once the New England states get their energy policy crap together…
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    OH Budget Bill Blocks Forced Pooling of Public Lands

    Ohio is about to pass and adopt it’s latest biennial budget. Part of the budget bill includes language to exempt Ohio’s city and town parks from the state’s unitization (i.e. forced pooling) laws. In Ohio, if 65% of the landowners in a proposed unit have agreed to lease their land for oil or gas drilling, the other landowners in the unit can be forced to join the unit to allow drilling under (not on) their land. There are all sorts of requirements before forced pooling occurs, including a $10,000 fee paid by the driller, and a hearing to review efforts made to enroll said recalcitrant landowners. But in the end, it is possible to force landowners who don’t want drilling, to have it. The justification is that those who don’t want it are harming those who do want it by not agreeing to join the unit. Should the action of someone with a few acres deny benefits to all of his neighbors? We’re not saying we support the concept of forced pooling–just giving you our best interpretation of the arguments used to support it. We understand those arguments. We also understand the sanctity of private property. Until now, local towns and municipalities in Ohio were treated like any other landowner. But now, with the new budget, they will get a special exemption. Local municipalities cannot be forced to participate–unless they want to participate–in a drilling unit…
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    Ambulance Service Sues Rice Energy for $27K re Jan. Well Pad Fire

    In January, MDN reported on a well pad fire at Rice Energy’s Papa Bear well pad in Somerset Township (Washington County), PA (see Explosion & Fire at Rice Energy Drill Pad in Washington County, PA). Although no one was hurt, the explosion and fire ended up ruining six of the 20 pumps, and damaging four pumper trucks. As might be expected, local first responders were called to the scene, including four ambulances from Bearcat EMS Inc. Following the initial incident, Bearcat sent a bill to Rice for $26,742 to cover their costs of responding. Rice responded that they didn’t call Bearcat, and that Bearcat didn’t actually do anything, so they don’t owe them a penny. Bearcat, in paperwork filed in a lawsuit against Rice, says even though they didn’t help Rice personnel/contractors, they did provide services to other EMS staff at the scene, over a four-hour period. Therefore, pay up. The matter now sits in court…
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    Trump Taps Former Wind Energy Lobbyist for FERC Post

    Earlier this month MDN reported that extreme partisan Sen. Chuck Schumer had recommended to the White House that Richard Glick, a current a Senate staffer (i.e. swamp dweller) and former lobbyist for the wind industry, should succeed Democrat Colette Honorable as the second Democrat commissioner on the Federal Energy Regulatory Commission (see Dems Pick Wind Lobbyist for FERC Appointment). Today is Honorable’s last day on the job. At the time, Glick’s nomination was still just a rumor. The White House refused to comment so as to not “get ahead of an official announcement.” We advised Team Trump to give it a pass. They didn’t listen. Yesterday it became official–Trump will nominate Glick for the post. Which is (in our opinion) sad…
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    PA Budget Massively Overspends, Increases Pressure for Sev. Tax

    Pennsylvania does not have a revenue problem–it has an overspending problem. Once again the Republican-majority legislature in PA is caving to the siren song/pressure of wild-spending, liberal Democrats and will pass a budget that is $2 billion over the revenue they can reasonably expect–sprinkled with giveaways like an extra $100 million for teachers unions–and beginning next week the Republicans will face a barrage of media stories and pressure to create a severance tax to help make up the difference. Already we’re seeing stories about the need for a “fair gas tax” and that a severance tax is “long overdue.” What about passing a “fair budget” that doesn’t overspend? What about “fiscal responsibility” that’s long overdue? Where are those stories? And, when will Republicans learn to quit playing the Dem’s game?…
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    President Trump Unveils 6 Energy Initiatives, Half Involve NatGas

    This week has been “Energy Week” at the White House, and yesterday President Trump (we just love saying that, “President Trump”) announced six new initiatives not to just make America energy independent, but to make America energy dominant. We love that too! Energy DOMINANT. Throughout the world. Number one. One of the six initiatives in Trump’s plan was the announcement that Sempra Energy is in negotiations with South Korea to sell them our LNG (liquefied natural gas, see more on that below). That’s a good thing! No doubt some of the gas heading to the Korean peninsula will come from the Marcellus/Utica. Another of the six initiatives announced yesterday is approval for two applications to export LNG from Louisiana. And a yet another initiative involves more offshore drilling for oil and gas. So half of the initiatives announced somehow impact or relate to natural gas (two of which also impact Marcellus/Utica). Here’s the full list of six initiatives announced yesterday in a speech by President Trump…
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    Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off

    Tractor Trailer NG proposes to use at Fenton location – Click image for full size version

    MDN editor Jim Willis attended one of the information sessions offered by NG Advantage at the Port Crane fire hall last night. NG Advantage is making a concerted effort to dispel false rumors and misunderstandings on the part of neighbors who live near a proposed “virtual pipeline” site that is a series of compressor stations grabbing gas from the Millennium Pipeline in a Binghamton suburb, compressing it and loading onto tanker trucks. Jim knew it was going to be an interesting night when he arrived at 7:15 pm to find a packed previous session that began at 5 pm was still going strong. Jim wandered to the back of the facility (in the parking lot) to view one of the tanker trucks that NG hopes to have accessing the facility (see our pic). In fact, two of these trucks each and every hour of the day will enter and leave the facility, some 50 trucks per day, on average, according NG officials. As Jim approached the truck, a woman also walking in the same direction said loudly, “My God! Look how BIIIIIIGGGG it is!” Like she’d never seen a tractor trailer before (actually, it’s shorter than a standard trailer). Since no one else was close to her, Jim assumed she said it for his benefit–likely hoping he would join in and agree. Jim said nothing. The same woman grilled the NG rep standing there, asking how many trucks per day, etc. And then she said, “I’m against this–I’m just glad there’s now a stop work order,” which was the first we had heard the news (more on the stop work order below). The woman’s demeanor and her ebullience that the project is now halted was an early signal: Jim knew he was in for a long night of high emotion from local residents who don’t want the facility, largely because of truck traffic. Jim was right…
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