Industrywide Issues

  • | | | | | |

    Sisters of the Corn Say Fight to Stop Atlantic Sunrise Not Over

    We don’t often highlight news from the Amazon-owned Washington Post, since much of its reporting is fake news (outright lies, many times), but this time we couldn’t resist. A Washington Post article published yesterday appears to contain at least some truth–about a group of Lancaster nuns. We’ve previously written about a group we call Sisters of the Corn. They stuck a few wooden park benches in the middle of a corn field that they own (leased to a local farmer), and called it a “chapel” so they can claim the planned Atlantic Sunrise Pipeline that will go through that field violates their so-called religious freedom. It’s a sham–backed by local radicals calling themselves Lancaster Against Pipelines. As we reported on Monday, a PA judge, in an eminent domain case, ruled against the Adorers of the Blood of Christ (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe). However, the Sisters have also filed a frivolous federal lawsuit claiming religious freedom violation, which could still go in their favor, odds about 99 to 1 against (see Lancaster Nuns Sue FERC to Stop Atlantic Sunrise Pipeline). If all else fails, the radical antis that the Sisters have aligned themselves with are pledging to sit their rear-ends in the middle of the corn field and “pray” (who knows to whom?) in a bid to prevent construction of the pipeline through the field. That is, they will engage in an illegal activity requiring police involvement to remove them–which of course will create a media circus. The kicker: the Sisters operate a retirement community on the same property–heated by natural gas…
    Read More “Sisters of the Corn Say Fight to Stop Atlantic Sunrise Not Over”

  • | | | | | |

    NFG Tells Court Constitution Decision DNA to Northern Access Case

    Yet more drama and intrigue in National Fuel Gas Company’s (NFG) lawsuit against the New York Dept. of Environmental Conservation (DEC). Three years ago NFG proposed and filed to build the Northern Access Pipeline project–a $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). However, 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). 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). 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?). Predictably, the office of NY’s corrupt Attorney General, Eric Schneiderman, filed a letter with the 2nd Circuit (copy below) saying, in essence, the Constitution case is just like this one, so the court should rule the same way: against NFG and for the DEC. However, a few days after that, NFG’s attorneys filed their own letter (copy below) pointing out the fallacy in the previous letter. NFG says the Constitution is very narrow, and in fact ultimately supports the NFG case against the DEC…
    Read More “NFG Tells Court Constitution Decision DNA to Northern Access Case”

  • | | | | |

    FERC Fights NJ Town Effort to Decertify Garden State Expansion

    Two New Jersey towns have sued in federal court, seeking to overturn a decision by the Federal Energy Regulatory Commission (FERC) to approve Williams’ Transco Garden State Expansion pipeline project. MDN brought you the happy news in April 2016 that three Obama-appointed FERC commissioners had approved the $116 million project (see FERC Approves NJ Pipeline – More Marcellus Gas on the Way!). The project was created to address supply disruptions following Superstorm Sandy in 2012. By upgrading compressor stations and adding a new meter station, the Garden State Expansion project will supply an extra 180 million cubic feet per day (MMcf/d) of natural gas to “a new delivery point on Transco’s existing Trenton Woodbury Lateral pipeline” (see NGI’s Shale Daily). Two towns in Burlington County (Bordentown and Chesterfield) where some of the work would be done for Phase 2 of the project filed a lawsuit asking the U.S. Court of Appeals for the Third Circuit to overturn FERC’s previous decision to allow the project. FERC has just responded (copy below) arguing they carefully considered the project, crossing all “T”s and dotting all “I”s before they authorized the project. Phase 1 of the project will likely go online next week. Phase 2 is due to be online by next summer, provided the 3rd Circuit doesn’t screw it up…
    Read More “FERC Fights NJ Town Effort to Decertify Garden State Expansion”

  • | | | | | | | |

    Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill

    Will anti-fossil fuel Big Green groups succeed in turning a molehill into a mountain? That’s what they are attempting to do with the latest tiny spill (50 gallons) of drilling mud by Sunoco Logistics Partners in underground drilling work for the Mariner East 2 pipeline project in Dauphin County, PA. Over the past several months, Sunoco has experienced some “inadvertent returns” (i.e. leaks) of drilling mud at various locations. One of those was in Chester County, where a serious leak temporarily fouled a water aquifer and clouded drinking water for 15 local households (see Sunoco Stops ME2 Drilling in Chester County Following Water Issue). Sunoco took extraordinary steps to make it right, going so far as to pay to run municipal water to affected homeowners. Earlier this month Sunoco struck a deal with several Big Green groups to provide stricter regulation for ME2’s underground drilling (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Part of the deal says if Sunoco experiences two leaks of drilling mud at the same location, they must shut down drilling in that location and wait for the state Dept. of Environmental Protection to further review drilling plans before they can restart. On August 24th there was a 50-gallon drilling mud spill into the Susquehanna River in Dauphin County related to ME2. (A quick reminder: drilling mud, or “bentonite,” is non-toxic–the same stuff found in toothpaste and kitty litter). Thing is, there was another spill of 495 gallons at the same location a week earlier. Antis say Sunoco must now shut down drilling in that spot until further notice. Sunoco is saying that particular location was not part of the signed agreement…
    Read More “Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill”

  • |

    Trinidad LNG Exports Continue to Fall – New England Shortage?

    From time to time we sound the alarm that New England’s primary supply of natural gas, which comes via LNG tankers from Tinidad & Tobago, is in danger of drying up. New England continues to pay prices 3-4 times higher than the rest of the country for their natgas–due to lack of supply. That hasn’t (and won’t) change, until more supplies make it to New England, either by pipeline or ship. Opponents of new pipelines to New England have included LNG importers in the region. Specifically, GDF Suez imports Trinidad gas at the Everett, MA LNG import terminal, near Boston (see New England Importer Received 59% of All LNG Ship Imports 1H15). LNG imports are one of the primary sources of natgas for New England. Antis holler and scream, “Forget the pipelines. If you must use gas, use LNG. There’s more than enough LNG to supply New England.” In a macro sense that may be true, the world is awash in LNG. But arranging shipments and sources for it takes months, even years. And it costs more to get natural gas via LNG shipments than it does via pipelines. Right now most of the LNG GDF Suez imports come from Trinidad. As we pointed out in an article last year, Trinidad’s natural gas sources are drying up (see Is New England Heading for Huge NatGas Price Spike this Winter?). The country is exporting less and less. We have yet more evidence of that. Trinidad’s natural gas production decreased another 9% during the first half of this year. Again we sound the alarm! New England is heading for a natgas shortage…
    Read More “Trinidad LNG Exports Continue to Fall – New England Shortage?”

  • | | |

    PA 2Q NatGas Production Report – Another New Record

    It continues to be another banner year for natural gas production in Pennsylvania, going by the latest quarterly production report. Yesterday, the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for May-Jun 2017 (full copy below). It shows natgas production rose 3.8% compared to the same period last year. It also shows the number of producing wells is up 7.5% from last year. Total natural gas production volume was 1,315.7 billion cubic feet (Bcf) and the number of producing wells in 2Q17 was 7,853. Perhaps the biggest news is that 2Q17 saw the highest quarterly production–ever. Another interesting fact from the latest report: Four counties (Susquehanna, Washington, Bradford and Greene) comprised two thirds (68%) of statewide production. All counties except Greene and Lycoming registered production gains. The #1 county for natgas production in 2Q17? Susquehanna County. The #1 driller in that county? Cabot. You might say, with some justification, that the success of Cabot’s drilling program in Susquehanna County has translated into success for all of Pennsylvania…
    Read More “PA 2Q NatGas Production Report – Another New Record”

  • | | | | | | | | |

    Midstreamer E2 Energy Gets Major Investment from Tailwater Capital

    E2 Energy Services, which operates numerous natural gas processing facilities in the Marcellus/Utica, has just recapitalized “through an equity commitment from Tailwater Capital.” MDN first heard of E2 back in October 2014 when EnLink Midstream transferred ownership (“dropped down”) its investment in E2 Appalachian Compression, LLC and E2 Energy Services, LLC from one EnLink corporate entity to another (see EnLink Midstream’s Primary Focus in the Marcellus/Utica is…). EnLink, at least in 2014, owned a majority interest in E2–so we consider E2 a subsidiary of EnLink. Now comes word that a private equity investment company, Tailwater Capital, has committed a big slug of money, although we are not given the amount. When a company like E2 “recapitalizes” that typically means the company is swapping debt (bonds and notes) for equity (stocks). The announcement from E2 does not share the exact nature of the recapitalization. Below is the announcement, along with a list of E2’s assets and operations in the Marcellus/Utica region…
    Read More “Midstreamer E2 Energy Gets Major Investment from Tailwater Capital”

  • | | |

    South Jersey Resources to Manage NatGas Supply for W PA Elec Plant

    South Jersey Resources Group has cut a five-year deal to provide natural gas for the Hickory Run Energy Station in Lawrence County, PA. Just two weeks ago MDN told you that the Hickory Run Energy Marcellus gas-fired electric plant planned for Lawrence County appears to be active and moving forward once again (see Signs of Life in Lawrence County, PA NatGas-Fired Electric Plant). Tyr Energy, a subsidiary of ITOCHU Corporation, purchased the Hickory Run Energy project in 2016 from LS Power Development. South Korea’s KB Asset Management announced they are investing $150 million in the project, which we said is “a sure sign that the pieces are now coming together for construction to begin.” Little did we know how prophetic those words were. Two days later, another report in the Korean Investors publication reported that French banking giant BNP Paribas has originated $460 million worth of loans for the project–of which the KB Asset Management investment is part (see Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?). The article also reported, “Ground has been broken for the plant.” Cool. Now another piece of this fast-moving puzzle falls into place. South Jersey Resources will contract for and supply natural gas to the plant, when it fires up…
    Read More “South Jersey Resources to Manage NatGas Supply for W PA Elec Plant”

  • | | | | | |

    Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well

    Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011. In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Range’s enviro crime? Methane migration from a well in Lycoming County, PA. The DEP says the Range well, drilled in 2011, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled say methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board (see PA DEP’s $8.9M Methane Migration Fine Appealed by Range Resources). In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We assumed that was the end of the matter. But alas, no. We now, finally, have an end. Both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” The paperwork (copy below) does not say what the terms of the settlement are. Both Range and the DEP are being mum about the terms…
    Read More “Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well”

  • | |

    EIA: Gas Processors Key to Rapid Growth in Marcellus/Utica

    Ever hear the old proverb: “Success has many fathers, but failure is an orphan.” There are many reasons, many “fathers” for why the Marcellus/Utica region has become the highest producing natural gas region in the U.S. We have great shale rock. We have a lot of shale rock. We’re located close to major markets. We have a large and ready workforce. Increasingly, we have pipeline infrastructure to move the gas to new markets. All of those things contribute to the success of our region. But there’s one element that is critical, but often overlooked–gas processing and fractionation. Gas processing cleans up the hydrocarbons coming out of the ground–removing water and impurities, and separating methane (i.e. natural gas) from natural gas liquids (NGLs). Fractionation further separates NGLs into their components–ethane, propane, butane, pentane, etc. The U.S. Energy Information Administration (our favorite government agency) published an article yesterday looking at they critical role played by processing and fractionation in the Marcellus/Utica. They point out that when the shale revolution really began to take off in our area, circa 2010, we had roughly 1.1 billion cubic feet per day (Bcf/d) of gas processing capacity. In 2016, that number had zoomed up by a factor of nearly 10, to 10 Bcf/d of gas processing capacity. Without the ability the process the gas, it can’t be sold. One of the main “fathers” of success in the Marcellus/Utica, is processing…
    Read More “EIA: Gas Processors Key to Rapid Growth in Marcellus/Utica”

  • | | | | | | |

    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…
    Read More “Antis Continue to Fight Inevitable NEXUS Pipe, Change Strategies”

  • | | | |

    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”

  • | | | | |

    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”

  • | | | | | | |

    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…
    Read More “Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again”

  • | | |

    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…
    Read More “OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands”

  • | | | | | | | | |

    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…
    Read More “Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit”