Industrywide Issues

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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…
    Read More “Ambulance Service Sues Rice Energy for $27K re Jan. Well Pad Fire”

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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…
    Read More “Trump Taps Former Wind Energy Lobbyist for FERC Post”

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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…
    Read More “Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off”

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    NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?

    The New Jersey Dept. of Environmental Protection (NJDEP) sent PennEast Pipeline a letter yesterday saying they have closed the application for water-crossing permits for the project–without granting those permits. In April the NJDEP temporarily rejected the permits, giving PennEast another 60 days to respond to requests for more detailed information about the project (see NJ DEP Temporarily Rejects PennEast Request for Wetland Permits). The NJDEP says PennEast isn’t making sufficient progress and so they are simply closing the book on it. Which may sound like the end of the line for PennEast. That is, if you read statements by radical environmentalists like Jeff Tittel from the Sierra Club. Except it’s not game over. PennEast says, in essence, “No problem. Thanks anyway. We’ll be back and refile the application shortly.” Which they can do. Below is a copy of the letter from the NJDEP, some select (biased) coverage from anti-fossil fuel mainstream media, and a full statement from PennEast, to set the record straight…
    Read More “NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?”

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    ODNR Approves Plans for 2 New Trumbull County Injection Wells

    Some good news for Utica (and Marcellus) drillers: The Ohio Dept. of Natural Resources (ODNR) has just approved permits for two new frack wastewater injection wells in Trumbull County, OH. Which doesn’t make the local anti-fracking nutters with FrackFree America happy. One of them calls the approvals “immoral.” She’s calling on the company building the wells, Highland Field Resources, to “abandon its plans.” (chuckle) The wells will be built in the town of Brookfield. ODNR has attached a myriad of conditions and required testing before the wells can go live. Here’s the immoral details…
    Read More “ODNR Approves Plans for 2 New Trumbull County Injection Wells”

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    Radical Enviro Group Sues Warren Frack Wastewater Plant

    The Fresh Water Accountability Project, an anti-fracking group based in Michigan, has filed a frivolous lawsuit against the Patriot Water Treatment facility and the City of Warren, OH, claiming they are processing frack chemicals at their plants that don’t get processed enough–and consequently get released into the Mahoning River. This is not Patriot Water’s first time in court. Patriot has had a long-running feud with the Ohio EPA and Ohio Dept. of Natural Resources (ODNR)–a feud that goes all the way back to 2011 (see MDN’s string of Patriot Water stories here). Patriot processes frack wastewater at it’s Warren plant and then disposes of the wastewater by using the local Warren municipal sewage treatment plant. That is, Patriot strips out all of the really nasty stuff, and then the sewage plant finishes off the process and the water is then released into the Mahoning River, near Youngstown. The OH EPA and ODNR pulled Patriot’s permits to operate for a four-month period in 2012, but Patriot sued and won the right to continue operating, sending their wastewater to the sewage plant. Everything is legal. So now a non-profit group, Fresh Water Accountability Project, is going to try and shut down Patriot with a new lawsuit. If Fresh Water Accountability loses, can we shut them down? At the very least, their tax-exempt status should be stripped away for engaging in overtly political activities…
    Read More “Radical Enviro Group Sues Warren Frack Wastewater Plant”

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    Rover (Again) Asks FERC for Permission to Finish Horizontal Drilling

    Yesterday Energy Transfer Partners, the builder of the Rover Pipeline, once again asked the Federal Energy Regulatory Commission (FERC) if they could pretty-please-with-a-cherry-on-top resume horizontal directional drilling (HDD) in a couple of key locations in Ohio, so they can finish phase one of the pipeline somewhere close to on-time. Rover is a $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. It is a critical piece of sorely needed infrastructure for the Marcellus/Utica industry. As soon as ET received approval for the project in February, they began building it. But they hit a few snags along the way, including an “inadvertent return” (i.e. leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see FERC Slaps Rover Pipeline with Stop Drilling Order). A few weeks later ET asked FERC if they could begin drilling again in a few key locations (see Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill). But so far, nyet. Yesterday ET asked again, “respectfully,” to restart HDD drilling…
    Read More “Rover (Again) Asks FERC for Permission to Finish Horizontal Drilling”

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    FERC Gives Dominion VA/MD/DC Pipeline Favorable Enviro Assessment

    In October 2016, Dominion announced a new pipeline project called Eastern Market Access Project (see Dominion Announces $145M Project to Expand Gas Supply to DC & MD). The project will beef up two compressor stations in Virginia, build a new compressor station in Maryland, and add a couple of pipeline taps near Washington, D.C. The purpose of the $145 million project is to deliver more gas to Washington Gas (and its customers), and to deliver gas to a new gas-fired electric power plant being built in Maryland. A Dominion spokesman confirmed for MDN that the gas will come from either the Marcellus or Utica plays. Some good news to report: the Federal Energy Regulatory Commission (FERC) has issued a favorable environmental assessment (EA) for the project…
    Read More “FERC Gives Dominion VA/MD/DC Pipeline Favorable Enviro Assessment”

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    PA Dems Continue to Push Severance Tax Instead of Spending Cuts

    Pennsylvania does not have a taxing problem, as people like Gov. Tom Wolf pretend–it has a spending problem, as in they spend beyond their means. The last governor that tried to correct that problem–Tom Corbett–got handed one term in the big chair for his efforts at dealing honestly with it. Big Education and Big Labor knifed Corbett in the back, politically, after he cut the mammoth increase in their growth. (FEED ME FEED ME) If you want to know why PA is in budget trouble, look no further than it’s Secretary of the Dept. of Community and Economic Development, Dennis Davin. Every econ growth guy we’ve ever talked to knows that increasing taxes gets less of what you tax–it is an incontrovertible fact in economics. Yet Davin, who’s boss is utter failure Tom Wolf, is pushing hard for a huge tax increase on the Marcellus industry–the very industry that has singlehandedly kept PA out of an economic abyss. And yet the guy who should understand the issue the best, is pushing hardest for the tax. That tells you all you need to know about the Wolf Administration and it’s utter failure…
    Read More “PA Dems Continue to Push Severance Tax Instead of Spending Cuts”

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    Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio

    Click map for larger version – Harpster & Lima in the center

    In February MDN reported that Marathon Petroleum had begun to build a 49-mile condensate pipeline, called HALI–the Harpster to Lima Pipeline (see Marathon Begins to Build New 49-Mile Utica Pipeline in Ohio). The purpose of the project is a pipeline “for efficient and safe delivery of condensate from the Utica Shale to refineries where it can be processed into gasoline and diesel in order to meet the needs of producers, mid-streamers, marketers, diluent blenders, and refiners as the Utica Shale continues to develop.” At the time, the pipeline was expected to go online in July. It’s not quite July, but the good news is that the pipeline is now online and delivering…
    Read More “Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio”

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    NG Advantage Meets with Virtual Pipe Neighbors in Broome County

    NG Advantage is making a concerted effort to dispel false rumors and misunderstanding 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. As MDN reported yesterday, two different groups have now filed lawsuits to stop work at the site, one by a local elementary school (more than a half mile away) and one by residents living nearby, including a local Catholic church parish (see Church Asks NY Court to Stop Broome County CNG Virtual Pipeline). Last night officials with NG held a meeting for area residents (with more meetings scheduled for tonight) to answer questions and get the truth out about the facility. Two items in particular were front and center: (1) There are no emissions from the compressor station–it is a series of compressors (4 initially, up to 12 in all) that are powered with electricity, not diesel. So there are zero emissions from the plant. NONE. (2) The plant will be quieter than the Interstate highway it sits next to. If you are walking in the nearby Port Dickinson park (as MDN editor Jim Willis sometimes does), you will continue to hear the highway which runs overhead–but you won’t hear the compressor station. Neither will neighbors like the Catholic church hear it. Here’s a summary of last night’s meeting…
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    PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev

    It’s clear that radical environmentalists who (irrationally) oppose the use of fossil fuels believe the recent decision by Pennsylvania Supreme Court is a gift from Gaia (Mother Earth goddess). As MDN previously reported, last week the Pennsylvania Supreme Court of Appeals, in a sharply divided 3-2 decision, sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and drilling on state-owned land MUST be used solely for conservation and the environment (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). However, denying the state Dept. of Environmental Conservation (DCNR) from funding itself with lease/royalty revenue was inconsequential, a distraction from the real aim. The decision, according to the radicals, further strengthens the state’s so-called Environmental Rights Amendment to the state constitution. What it means, in very practical terms, is that the antis now plan to use a decision ostensibly about how a single state agency gets its funding, to apply the philosophical underpinnings (the right to a clean environment) as a weapon against judges and the Dept. of Environmental Protection (DEP), to force them to consider whether or not issuing a given permit for a project “harms” the “rights” of PA citizens to a “clean environment.” In other words, the radicals are weaponizing a court decision to use against the shale industry–and they’re signaling, via their sycophantic mouthpieces at StateImpact Pennsylvania, that’s exactly what they intend to do…
    Read More “PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev”