Industrywide Issues

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    NY DEC Tells Williams NE Supply Water Permit App is “Incomplete”

    In March of this year, Williams filed a full, official application for the Northeast Supply Enhancement project (see Williams Files with FERC to Expand Transco Pipeline to NYC, NE). The new project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. Just two days ago we told you about an effort in NJ to oppose it (see Battle Heats Up for NJ-NY Raritan Bay NatGas Pipeline). Much of the Raritan Bay pipeline is located in New York territorial waters. In a case of “here we go again,” the New York Dept. of Environmental Conservation (DEC), which has been corrupted and politicized by Gov. Andrew Cuomo, sent a notice to Williams (to their Transco subsidiary) to declare the application for a 401 water-crossing permit for the Northeast Supply Enhancement project is deemed “incomplete,” pending certain items…
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    Court Tells Munroe Falls to Reimburse Beck Energy $45K Legal Fees

    In June 2016, MDN shared with you the news that Munroe Falls (Summit County), OH had filed yet another frivolous lawsuit against Beck Energy to prevent drilling–after already losing a similar case before the Ohio Supreme Court (see Munroe Falls Won’t Let it Go: Files New Lawsuit Against Beck Energy). MDN received a statement from Beck Energy’s lawyer which said, among other things: “…the complaint the City of Munroe Falls recently filed lacks any good faith basis under existing law, and it is clear Munroe Falls’ intention in filing this complaint is to harass and maliciously injure Beck Energy” (see Beck Energy Lawyer Responds to Frivilous Munroe Falls Zoning Case). Munroe Falls’ harrasment of Beck Energy has been going on for years (see our list of stories here). Beck counter sued Munroe Falls and asked for unspecified damages–meaning the potential for the city to be bankrupted by a big judgment (a very real possibility). Beck later backed away from the ledge and dropped some of the counterclaims against Munroe Falls. After all, Beck doesn’t want to bankrupt the good people of Munroe Falls over the illicit actions of its leaders. The final verdict is now in. On July 13, the Summit County Court of Common Pleas awarded Beck Energy $45,000 in attorney’s fees against Munroe Falls for having to defend against a frivolous lawsuit brought by the city. So now the taxpayers of Munroe Falls will have to pony up for the actions of their “leaders”…
    Read More “Court Tells Munroe Falls to Reimburse Beck Energy $45K Legal Fees”

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    Mass. RINO Gov. Baker Orders “Review” of Compressor Station

    [begin political rant] Massachusetts Gov. Charlie Baker is a RINO–Republican in Name Only–and not all that different from another RINO who was once governor of the Bay State: Mitt Romney. We personally find RINOs disgusting. Why don’t they just switch parties and be done with it? Join the Democrats, or if the lib Dems are too far to the left, join the Establishment Party, which is really what they all belong to anyway, regardless of the D or R after their name. [end political rant] Gov. Baker has (surprise!) caved to pressure from radical, insane environmentalists in his state who want to stop a compressor station from getting built in Weymouth, MA. The compressor is part of Spectra Energy’s (now Enbridge) federally-approved Atlantic Bridge project (see FERC Approves Atlantic Bridge Project for New England/Canada). Atlantic Bridge will beef up capacity of the Algonquin Gas Transmission and Maritimes & Northeast Pipeline systems–to move more Marcellus/Utica gas to New England and Canada. The compressor station in Weymouth is situated along the Alogonquin Gas Transmission pipeline. The radicals have been ranting about this project pretty much from the beginning. In February, Massachusetts’ two Democrat U.S. Senators, Ed Markey and the faux American Indian, Elizabeth “Pocahontas” Warren, asked the Federal Energy Regulatory Commission to withdraw its approval of the project (see Mass. Senators Ask FERC to Reverse Atlantic Bridge Certification). Since that time, the radicals have continued their campaign to stop Atlantic Bridge. On July 11th, the Boston Globe ran a “you darned well better find a way to stop this compressor station, Gov. Baker” article, and less than a week later, Baker wilted like a picked flower, and said he will sic various state agencies on the case to try and find a way to slow it down. However, Baker does admit that in the end, the state likely can’t do a thing about the compressor, because it’s a FERC-approved project…
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    “Privileged White” Actor Cromwell Serves < Half of Jail Sentence

    Being famous (and “privileged” and “white”) has its perks. Actor James Cromwell, as we noted yesterday, reported to jail last Friday for refusing to pay a fine and do community service following his illegal activities in blocking construction at the $900 million CPV Valley Energy Center project in Wawayanda, NY (see “Privileged White” Actor James Cromwell Jailed for Power Plant Protest). In an interview with People magazine, Cromwell said he was “excited” to experience something most “privileged white people” don’t experience–time in the clink. Cromwell endangered himself and others with his actions. A judge found him guilty. He refused to pay a small fine, so he received a sentence of seven days. Although we assumed he was in the midst of his sentence when we posted our piece yesterday, alas, come to find out, he was not. Cromwell was already released–after serving just 3 days of his 7-day sentence–less than half of his sentence. Jail officials tossed him out Monday morning, after spending the weekend in jail. So yes, apparently being a famous Hollywood star who is “privileged” and “white” gets you a free get-out-of-jail card–at least in Orange County, where the wheels of justice grind differently, depending on race, economic status and celebrity…
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    New Marcellus-Fired Electric Plant Coming in Clinton County, PA

    Click for larger version

    It seems like Marcellus gas-fired electric generating plants are popping up faster than early summer dandelions around Pennsylvania. However, appearances can be deceiving. Decisions and plans to build these vitally important energy infrastructure projects aren’t made at the drop of a hat. They take years. For example, we spotted an article about the groundbreaking for a new natgas electric plant in Clinton County, PA that will take place next year, in 2018. The $800 million Renovo Energy project (in Renovo, PA) is a 950 megawatt dual fuel (natural gas and ultra-low sulfur diesel (ULSD)) combined cycle electric generating plant proposed for the Renovo Industrial Park. Clinton County is located in central PA, surrounded by prolific Marcellus-producing counties including Lycoming, Centre and Tioga. This recent article is the first we had heard of the plant. However, the plant was first announced in April 2015. The official application for the project was filed with the PA Dept. of Environmental Protection (along with an application fee of $29,700) in August 2015. Here is the information we could locate on this power plant, including the full application (with site plan), and a reference that plant will get its gas from the Dominion Transmission interstate pipeline…
    Read More “New Marcellus-Fired Electric Plant Coming in Clinton County, PA”

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    “Privileged White” Actor James Cromwell Jailed for Power Plant Protest

    James Cromwell as Zefram Cochrane in Star Trek

    Hollywood actor James Cromwell is not only a privileged, spoiled 77-year old, he’s also self-loathing–because he’s white. That’s what we take from an article appearing in People magazine and its interview with Cromwell, who starred in movies like Babe, The Sum of All Fears and (one our favorites), Star Trek: First Contact. Cromwell, a Manhattanite, maintains a home in Orange County, NY (i.e. “Upstate”). When Cromwell learned that an electric generating plant that burns evil fossil fuels (natural gas) would be built near his home, he thought he would do what all Hollywood stars thinks will work–shut the project down by protesting. You know, because he’s famous. What a dope. After initial court challenges went nowhere, CPV (Competitive Power Ventures) began building the $900 million Valley Energy Center project in Wawayanda, NY (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). In December 2015, Cromwell and a few star-struck sycophants got themselves arrested for illegally blocking the entrance to the construction site (see Actor James Cromwell Arrested Protesting NY Power Plant Site). The wheels of justice grind slowly, but finally, two years later, the “Wawayanda Six,” as they call themselves, were found guilty and ordered to pay a fine. Some of the six did, but Cromwell and a few others refused. So last Friday Cromwell went to jail, where he’s sitting right now, for a seven-day sentence. Prior to heading off to the clink, Cromwell gave an interview to People in which he says, among other things, that’s he’s “excited” to be going to jail. He then said this: “So yes, I’m excited. I’m excited because I will have had an experience that not a lot of privileged white people have, what it’s like to be in there. What that system does to people who have no choice of how long they’re in there — they’re not gonna be in there for a week, they’re gonna be in there for years.” Our translation: Cromwell hates himself because he’s white and he’s privileged. Which is kind of ironic–because he tried to stop a $900 million project that will benefit the unprivileged people living in his area (with jobs and local tax revenue) precisely by USING his white, privileged status. Talk about conflicted!…
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    PennFuture Tries to Bully Allegheny County re Lease Revenue

    The true colors of PennFuture, a radical anti-drilling group, are now revealed for all to see. In June, MDN warned you that Big Green groups like PennFuture are attempting to “weaponize” a recent PA Supreme Court ruling (see PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev). The Supremes, in a sharply divided decision, sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state, 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). The decision is based on the Oil and Gas Lease Fund Act, which states any revenue from oil and gas leases (and signing bonuses) generated for the Commonwealth (that is, for the state of Pennsylvania) “shall be placed in a special fund to be known as the ‘Oil and Gas Lease Fund’ which fund shall be exclusively used for conservation, recreation, dams, or flood control or to match any Federal grants which may be made for any of the aforementioned purposes” (see Radical Enviros Now the Tail Wagging the PA DCNR Dog re Funding). Radical groups have wasted no time. PennFuture is now bullying Allegheny County (Pittsburgh area) by saying any revenue raised by leasing county land for drilling, like parks and airports, must be spent on Big Green causes groups like PennFuture approves of, and not anything else. Which is ludicrous. However, they are citing the recent Supreme Court decision and using it as a bludgeon to force a change in the way lease revenues are spent. In other words, those revenues are now a poison pill. If municipalities like counties and local towns can’t spend lease money the way they want, it removes the incentive to lease those properties in the first place…
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    Rover Pipeline’s Phase 1 In-Service Date Slips to “Late Summer”

    As recently as July 7th, Energy Transfer Partners, builders of the mighty 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, said that a portion of Phase 1–from Cadiz, OH to Defiance, OH–will be completed and go online this month, in July (see ETP Says Much (Not All) of Rover Phase I Will Go Online in July). But then the Federal Energy Regulatory Commission (FERC) sent ET a pretty hefty todo list on July 12th (see Frustrated FERC Gives Rover Todo List, HDD Drilling Still Blocked). ET has finally changed its tune–and target date. The company now says Phase 1 will not be completed and online until “late summer”…
    Read More “Rover Pipeline’s Phase 1 In-Service Date Slips to “Late Summer””

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    Rover Still in Hot Water w/FERC Over Demolishing This Old House

    In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. Their action in demolishing the house landed Rover in hot water with the Federal Energy Regulatory Commission (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). FERC said Rover should have reported their decision to demolish the house. Rover had to pay a “fine” of $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office” (see Rover Pipeline Paying $2.3M for Knocking Down Historic OH House). The thing that rankles is that the Ohio History Connection Foundation and its Ohio State Historic Preservation Office is a PRIVATE nonprofit organization–it’s not even a true state agency! At any rate, Rover paid their hush money, so that’s the end of it, right? Wrong. Last week FERC issued a “Staff Notice of Alleged Violations” related to this old house. The notice says Rover “did not fully and forthrightly disclose all relevant information.” FERC also said, “Rover falsely promised it would avoid adverse effects to a historic resource that it was simultaneously working to purchase and destroy.” In other words, we’re not done with you yet…
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    Why Corp Raider Jana Won’t Succeed in Derailing EQT/Rice Deal

    One of our favorite oil and gas analysts, Richard Zeits, says it’s a long shot at best that the corporate raiders at Jana Partners will be able to scuttle EQT’s planned purchase of Rice Energy. In June, EQT announced a deal to buy out Rice Energy for $6.7 billion in cash and stock, and assume $1.5 billion in debt, for a total deal price of $8.2 billion (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). A few weeks later so-called “activist investor” (i.e. corporate raider) Jana Partners, in league with the Cohen family (Atlas Energy) started a proxy fight to block EQT’s takover/merger with Rice Energy (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Instead of buying Rice, Jana is demanding that EQT split itself into two companies–upstream (drilling) and midstream (pipelines). These kinds of machinations are far above our understanding when it comes to high finance. However, there is a guy who eats, sleeps and breathes this stuff–Richard Zeits of OIL ANALYTICS. In an analysis piece on the Seeking Alpha investors website, Zeits says, “Jana’s activism is unlikely to derail” the deal. Here’s his reasoning…
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    EIA July Drilling Rpt: US & M-U Production Hit New Record Highs

    Yesterday, MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Get ready to break new records once again. In August we will hit the highest output of shale gas we’ve seen, ever. All seven major plays will produce an amazing 52.8 billion cubic feet per day (Bcf/d) of natural gas, and 5.6 million barrels of oil per day. Both numbers are up from July when it’s expected we will produce 52.0 Bcf/d of gas and 5.5 million barrels of oil. US shale continues to surprise and delight Americans, and confuse and confound OPEC. Which is just how we like it. In August, the Marcellus Shale is project to get a huge jump–one of the biggest we’ve seen, up 201 million cubic feet per day (MMcf/d) to a new Marcellus record of 19.75 Bcf/d of production. The Utica will go up 104 MMcf/d to 4.55 Bcf/d of natgas production. Truly impressive! Here’s the latest version of our favorite report…
    Read More “EIA July Drilling Rpt: US & M-U Production Hit New Record Highs”

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    Mark Zuckerberg Goes Fracking in North Dakota, Antis Have Meltdown

    Mark Zuckerberg is the very wealthy and quite young founder and CEO of Facebook. As is typical of his generation and in the tech world, Zuckerberg is a flaming liberal. But you have have to give the guy credit. He not only founded Facebook, he grew it–to one of the biggest companies (value-wise) in the world. And he hasn’t screwed it all up. So he’s learned something. He’s teachable. Apparently Zuckerberg thinks if someone like Donald Trump can win the presidency, he might be able to himself. So Zuck has been traveling across the county, visiting various companies/factories/etc. Last week the Zuck was in North Dakota, visiting the Bakken Shale. Which may seem unusual. Zuckerberg is a big renewables guy. However, Zuckerberg wanted to see fracking, its workers and the communities around it, first-hand. He cautioned against the dangers of “demonizing” people who work in the fossil fuel industry. You know, our opinion of Zuck just went up a few notches. Maybe this kid can learn. He’s keeping an open mind. But of course some of his biggest fans, anti-drilling snowflakes, had a meltdown and took to social media to castigate their former hero…
    Read More “Mark Zuckerberg Goes Fracking in North Dakota, Antis Have Meltdown”

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    Va. Supreme Court Rules Against Granny in Pipeline Survey Case

    Granny Clampett

    Last September MDN told you about an 83-year old granny who didn’t want surveyors working for Dominion’s Atlantic Coast Pipeline to enter her property to conduct a survey for a possible pipeline route (see A Supreme Court to Hear Atlantic Coast Pipe Survey Case). The Virginia Supreme Court accepted the case and as we said at the time, it is “high stakes,” because a 2004 Virginia law specifically allows surveyors to enter a property WITHOUT landowner permission, as long as the surveyors provide ample, advance notice of when they are coming. Some landowners use that advance notice to set up illegal blockades and to call in the police–an abuse of police authority (see Va. Landowners Illegally Block MVP Survey Crew on Bent Mountain). Hazel Palmer, an 83-year old widow (i.e. granny) chose to litigate rather than protest. She took her case all the way to the Supremes, and last week the Supremes ruled against her. However, Dominion also got a slap on the wrist. The justices said notifications sent for when surveyors will arrive can no longer say the surveyors will arrive “on or after,” because “after” can mean years later. Instead, Dominion will have to give several potential, specific dates when surveyors will visit a property…
    Read More “Va. Supreme Court Rules Against Granny in Pipeline Survey Case”

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    Second NY NatGas-Fired Elec Plant Breaks Ground in Hudson Valley

    Cricket Valley Energy – artists rendering (click for larger version)

    In January MDN told you about a second new natural gas-fired electric plant project in the Hudson Valley–in Dutchess County–an 1,100 megawatt plant to be built by Advance Power (see Japanese Company Building NatGas Power Plant in (Yes) New York). As we pointed out at the time, the Cricket Valley Energy project is 44% owned by JERA Co., Inc., a Japanese company. The power generating plant, if it gets built, will be fed by the Iroquois pipeline–which flows (yes) fracked Marcellus gas from Pennsylvania. The astonishing news is that on June 28th, Cricket Valley Energy broke ground and began construction. In corrupt New York!…
    Read More “Second NY NatGas-Fired Elec Plant Breaks Ground in Hudson Valley”

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    Sunoco Stops ME2 Drilling in Chester County Following Water Issue

    The on-again, off-again, on-again construction of the Mariner East 2 pipeline in Chester County, PA (near Philly)…is now off again. At least in West Whiteland Township. Sunoco Logistics Partners was using horizontal directional drilling (HDD) to install pipeline through an area where digging a trench would not work. The HDD work hit a water aquifer that feeds private water wells for homes in the area. Drilling mud used during the work leaked into the aquifer and resulted in cloudy water for some 15 households. MDN previously reported that Sunoco quickly addressed the issue and committed to paying for a municipal water line in the area (see Sunoco Extending Public Water to Homes Affected by ME2 Drilling). Last week Sunoco had resumed work in the area. But work is once again stopped, and will remain stopped “until further notice” according to local officials–until “the water situation is addressed.” We thought it had been addressed, but apparently not. Here’s the latest…
    Read More “Sunoco Stops ME2 Drilling in Chester County Following Water Issue”

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    Battle Heats Up for NJ-NY Raritan Bay NatGas Pipeline

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    In March of this year, Williams filed a full, official application for the Northeast Supply Enhancement project (see Williams Files with FERC to Expand Transco Pipeline to NYC, NE). The new project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. The gas flowing through the new pipeline will power an additional 2.3 million homes in the NYC area. Pre-filing for the project was done in May 2016, and the official application, as we said, was filed in March 2017. However, anti-fossil fuel fanatics (like the Sierra Club) have just woken up and are now protesting against the project–because the pipeline will run through the bay…
    Read More “Battle Heats Up for NJ-NY Raritan Bay NatGas Pipeline”