Industrywide Issues

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    Trump Nominates 2 New FERC Commissioners – Powelson & Chatterjee

    Finally! President Trump has proffered two candidates to fill the (soon to be) four empty slots as commissioners for the Federal Energy Regulatory Commission (FERC). The FERC board is supposed to have five commissioners. It currently has two, and soon to be one. Three commissioners are needed to fulfill a quorum, allowing votes to be taken on important infrastructure (i.e. pipeline) projects. A number of vital Marcellus/Utica projects are on hold due to lack of quorum. The not-so-secret rumor running around Washington since March was that Trump would nominate Kevin McIntyre, Neil Chatterjee and Robert Powelson (see Breaking: Kevin McIntyre, Neil Chatterjee are Trump Picks for FERC and Names Mentioned for 3rd FERC Post, Incl. PA’s Powelson). Kevin McIntyre is an attorney with the Jones Day law firm. Neil Chatterjee is a senior energy adviser to Senate Majority Leader Mitch McConnell. And Rob Powelson is a member of the Pennsylvania Public Utilities Commission, and currently the president of the National Association of Regulatory Utility Commissioners (NARUC). The rumor was that McIntyre would be put forward as chairman of FERC. Yet, when Trump finally nominated, McIntyre was not in the mix. Will he come along later? Is he now off the list? At least with Chatterjee and Powelson, FERC will once again have a quorum. When? Both candidates have to be vetted by the Senate. If everything goes smoothly, a final vote could happen by early June. Unless the Democrats try to slam the breaks on… Read More “Trump Nominates 2 New FERC Commissioners – Powelson & Chatterjee”

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    IOGAWV Opposed to Tiered Severance Tax – Proposal Now Dead?

    The West Virginia legislature only meets for 60 calendar days each year and move quickly when the do meet. Unless the governor calls for a special session. Which has happened–to consider and pass a budget for the state. During the regular session earlier this year, newly-minted Gov. Jim Justice wanted and got a bill, Senate Bill (SB) 415 (full copy below) that tiers the severance tax on natural gas and oil. Justice would keep the existing 5% severance tax on oil and gas as the bottom tier–to be assessed if the “annualized gross value of natural gas per MCF” is $3 or lower. When the annualized value goes to $3.01, the tax goes to 5.5%. At $3.51, it goes to 6%. And so on to $9/Mcf when the tax would be 10%. It’s a crazy idea and frankly, we’re surprised a Republican governor that supports the shale industry wants it. Other o&g states are looking at lowering their severance taxes, not raising them. At any rate, the Independent Oil & Gas Association of West Virginia (IOGAWV) is strongly opposed to the plan. From what we can tell, as of a few days ago, the tiered severance tax for natural gas/oil plan has been withdrawn. Which is good news for both drillers and landowners…
    Read More “IOGAWV Opposed to Tiered Severance Tax – Proposal Now Dead?”

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    6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe

    As we reported last week, six anti-pipeline residents living near where the Mariner East 2 pipeline will pass asked the Middletown (Delaware County, PA) town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. At a meeting earlier in the week, town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped up and agitated by Big Green groups, was rumored to be considering a lawsuit against the pipeline to force it to conform with Middletown’s ordinance. It’s no longer a rumor. The amped up antis, spurred on and using lawyers from said Big Green groups, filed a lawsuit in the Delaware Court of Common Pleas on Friday… Read More “6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe”

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    PA DEP Acting Secretary McDonnell Will Soon Drop “Acting” from Title

    Patrick McDonnell Acting Secretary, DEP

    It won’t be long now and Acting Secretary of the Pennsylvania Dept. of Environmental Protection won’t have to “act” any more. In May 2016, DEP Secretary John Quigley was fired for using a PRIVATE email account to collude with his Big Green friends to try and bully PA’s legislators into supporting his onerous proposed regulations (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Richly deserved. The man who took his place as Acting Secretary is Patrick McDonnell, a 19-year veteran of the DEP. Pat made it clear from the beginning he’d like to move from “acting” to full Secretary. It took Wolf long enough, but finally in September he put Pat’s name forward as permanent DEP Secretary (see Gov. Wolf Nominates Pat McDonnell to Head PA DEP, Finally). We’re not sure what the holdup has been, but the PA Senate Environmental Resources and Energy Committee finally held a hearing and grilled McDonnell yesterday, after which the panel voted to recommend he be confirmed. The full Senate has until May 23rd to cast that vote, which we expect they will do… Read More “PA DEP Acting Secretary McDonnell Will Soon Drop “Acting” from Title”

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    Study Finds Fugitive Methane from O&G 97% Less than EPA Estimates

    The federal Environmental Protection Agency (EPA), under the Obama/McCarthy reign of terror, far overstepped its charter by seizing power that doesn’t belong to it. Last May the EPA issued new methane rules in a back-door way to try and regulate the oil and gas industry (see EPA Does it Again: Tries to Destroy O&G with New Methane Rule). In pretty short order several states sued to stop the order, which eventually turned into 15 states (see 15 States File Lawsuits to Block EPA O&G Methane Rule). The EPA claimed, at that time, that methane is leaking out of bore holes, pipelines, valves–just about everywhere on a well pad. And methane (as the fairy tale goes) is a gajillion times more “potent” than carbon dioxide when it comes to causing man-made global warming. The problem is, the EPA used estimates, calculations, algorithms, spreadsheets as their “evidence.” They never went into the field and actually measured anything. Such a field study has now been done–by the EPA–in the Uinta Shale Basin in Colorado (full copy below). And guess what the researchers have found? While there is some methane leakage here and there, the EPA previously OVERESTIMATED the leakage–by 97%! Yes, “EPA researchers found methane emissions from intermittent bleed devices were 97 percent lower than the standard emission factor for intermittent pneumatic control devices EPA uses for estimates in its Greenhouse Gas Inventory(GHGI).” In other words, the entire methane rule the EPA forced on the industry was based on lies…a foundation of sand…a house of cards. Why does that not surprise us?…
    Read More “Study Finds Fugitive Methane from O&G 97% Less than EPA Estimates”

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    Fracking is Legal in New York? Yes! Using LPG

    Every now and again a gift lands in our lap, unexpectedly. Such is the case today. A third year law student at the University of Buffalo School of Law, Kelsey Hanson, has researched and written a masterful paper on the potential for LPG (liquefied propane) fracking in, yes, New York State. The paper, titled “Hey New York, You Can Frack: An Examination of How Liquefied Petroleum Gas Sidesteps New York’s Fracking Ban to Provide a Legal and Practical Approach for Horizontal Drilling in New York’s Marcellus Shale” (full copy below) has just been published in the Buffalo Law Review (how did that happen?!). In the paper, Hanson first gives a background of traditional fracking, then zeros in and explores LPG fracking–its benefits and its pitfalls. She concludes that the NY Dept. of Environmental Conservation (DEC) has left the door open, legally, for shale LPG fracking in the Empire State. She also gives us a much-needed update on the question MDN gets asked frequently: Whatever happened to LPG fracking in Tioga County, NY? The article is eminently readable, full of great information, and worth your time…
    Read More “Fracking is Legal in New York? Yes! Using LPG”

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    Federal EPA Writes a PennEast Pipeline Love Letter to FERC

    Once upon a time, during the Obama reign of terror, the out-of-control Environmental Protection Agency (EPA), as headed by the odious Gina McCarthy, blasted the PennEast Pipeline project (see Obama EPA, National Park Service Try to Rain on PennEast Parade). The Obama/McCarthy EPA made an outrageous claim: That building PennEast “may” end up causing arsenic in groundwater supplies. Totally bogus. And pathetic. The Federal Energy Regulatory Commission (FERC) didn’t fall for EPA’s arsenic and old lace. They approved the project in April (see FERC Issues Favorable Final EIS for PennEast Pipeline Project). Along with the change in the presidency has come some clear-headed thinking in Washington, DC–including at the EPA. Make no mistake–the EPA is still overly populated with Obamadroids that need to be canned. However, there’s enough of a change at the EPA that the agency has just sent what we would call a love letter to FERC, about PennEast. In it, the EPA says, “FERC’s efforts to consider and actively engage EPA to discuss comments, which resulted in improved or modified documentation provided in the [Final] EIS and improved safeguards for protection of human health and the environment.” And because of that, “many of our concerns and objections [to PennEast] have been or will be addressed.” In other words, everybody has now kissed and made up. EPA is feelin’ good about PennEast. And so are we…
    Read More “Federal EPA Writes a PennEast Pipeline Love Letter to FERC”

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    NY DEC Grants Water Permits for Atlantic Bridge Pipeline Project

    Very good news for Spectra Energy’s Atlantic Bridge project in (of all places) New York State. In January the Federal Energy Regulatory Commission (FERC) gave its final stamp of approval for Atlantic Bridge (see FERC Approves Atlantic Bridge Project for New England/Canada). Atlantic Bridge will beef up capacity on the Algonquin Gas Transmission and Maritimes & Northeast Pipeline systems–to move more Marcellus/Utica gas to New England and Canada. Even though FERC “approved” Atlantic Bridge, Spectra Energy must still ask for “Mother May I?” permission to begin construction on specific, individual portions of the project. FERC granted Spectra Energy permission to begin construction on all of their requests in Connecticut in March (see FERC Grants Atlantic Bridge Pipe OK to Begin CT Construction). However, the part of the project located in New York State was stalled, waiting for a water crossing permit from the Cuomo corrupted Dept. of Environmental Conservation (DEC). Miracle of miracles–the DEC has granted those permits… Read More “NY DEC Grants Water Permits for Atlantic Bridge Pipeline Project”

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    Allentown-Based Talen Energy (Elec Generator) Laying Off Workers

    Talen Energy was birthed in June 2015–a combination of PPL Energy Supply and certain assets of Riverstone Holdings. The company, headquartered in Allentown, PA, is one of the largest competitive energy and power generation companies in North America. Talen owns or controls 16,000 megawatts of generating capacity in wholesale power markets, primarily in the Northeast, Mid-Atlantic and Southwest regions of the U.S. Talen has gotten into converting and building natural gas-fired electric plants, stories we’ve covered over the past few years (see our Talen Energy stories here). At one time Talen employed around 500 people in Allentown at its HQ. Last summer the company announced layoffs for 131 people. Unfortunately, the trend continues. Talen plans to layoff more people–although an exact number has not yet been released… Read More “Allentown-Based Talen Energy (Elec Generator) Laying Off Workers”

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    Anti Group Trains to Fight New Drilling Permits in Westmoreland, PA

    Penn Twp – Westmoreland County, PA

    This is a heads-up to drillers and landowners in Westmoreland County, PA (essentially Pittsburgh suburb). A group of virulent anti-drillers, funded with money from Big Green groups like the Philadelphia-based and misnamed Clean Air Council, are running a “workshop” to train nutters how to spot any changes in permits for shale wells–so they can, do what? Oppose them, that’s for sure. How? Flood the state Dept. of Environmental Protection with letters and emails (to slow down the permitting process)? Protest? Something more sinister? The announcement about the training session doesn’t specifically state how the nutters will use the information. The training will take place in Penn Township in Westmoreland County, which has been the epicenter for a number of battles to allow drilling…
    Read More “Anti Group Trains to Fight New Drilling Permits in Westmoreland, PA”

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    Seneca County, OH – Where All Forms of Energy Come Together

    Generally speaking, the western side of Ohio is seeing a lot of activity with new solar and wind installations. And the eastern side of the state is seeing a lot of activity with shale drilling and natural gas pipelines. But there is one county, Seneca County (slightly left of center, in the northern part of the state) where both renewable projects like solar and wind, and fossil fuel projects like pipelines, are both active. And that means landowners in Seneca County are being bombarded with offers from solar, wind, pipelines and electric lines. Some sage advice from the Ohio Farm Bureau Federation for landowners: hire a lawyer before you sign anything… Read More “Seneca County, OH – Where All Forms of Energy Come Together”

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    40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout

    In April, MDN brought you news of an effort underway in Ohio to tax Ohio ratepayers $5.4 billion and give that money to FirstEnergy to prevent some of its nuclear power plants from closing (see OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants). Given stiff regulations, nuke plants face stiff competition in the free marketplace. Natural gas-fired plants are cheaper to build and operate, and deliver cheaper electricity. Since nukes can’t compete in the free and open market, FirstEnergy wants to rig the game, all in the name of “energy diversity” and keeping their nuke plants open (and investors happy). Rate-paying Ohioans get screwed in the process. Some 40 groups have banded together for form the Coalition Against Nuclear Bailouts. Some are big groups, some are individuals. They are diverse. For example, the far-left AARP (disgusting organization) is in the coalition. So too is the Ohio Oil and Gas Association (OOGA) and the National Association of Royalty Owners (NARO). Plus some pastors of churches, and local politicians. Feels kind of weird to support an organization with groups like the AARP in it. But perhaps the enemy of my enemy is my friend. At least in this case. It is, truly, a nonpartisan (or should we say bipartisan) coalition that has risen up to fight the nuclear bailout… Read More “40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout”

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    Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding

    In February, MDN told you that Titan Energy, which used to be known as Atlas Energy/Resource Partners, was listing what appeared to be the rest of the acreage they still own on the Appalachian basin–some 494,229 acres–including rights for drilling in the Marcellus (see Titan Energy Puts 494K Appalachian Acres Up for Sale). On Friday, Titan announced it has signed an agreement to sell the acreage, along with 8,400 oil and gas wells across Pennsylvania, Ohio, Tennessee, New York and West Virginia, for $84.2 million to Diversified Gas & Oil (DGO). Yes, the vast majority of those wells are conventional (vertical only) and not shale wells. In fact, we’re not sure any of the wells are shale wells. However, Marcellus assets were part of the sale–so at least some of the acreage will allow for Marcellus drilling, should DGO want to pursue it. Although Titan is keeping its Utica Shale acreage, the company says it use the money from this sale to concentrate efforts on oil drilling in the Texas Eagle Ford Shale play. Titan is moving its headquarters from Pittsburgh to Houston, TX. In addition to the news about Titan selling its conventional assets and moving, the twin story (perhaps even more interesting) is that the buyer, DGO (nominally headquartered in Birmingham, Alabama, although actually a UK company), has been on a buying spree–snapping up 75,250 conventional acres (1,300 wells) in PA & WV earlier this year. All told, DGO now owns 1.6 million acres of leases and 10,000+ conventional oil and gas wells in Appalachia…
    Read More “Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding”

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    NFG Update – Getting “Lousy Treatment” in NY, Threatens to Leave

    National Fuel Gas Company (NFG), headquartered in Western New York State, is making noises (threats) that Gov. Andrew Cuomo should be very concerned about. NFG covers the full span of the oil and gas business–from upstream (with its wholly-owned drilling subsidiary Seneca Resources), to the midstream (with wholly-owned subsidiary Empire Pipeline) to downstream (NFG’s natural gas utility service to 740,000 customers in NY and PA). It’s a big company that generates a lot of jobs and revenue for New York State. Yet NY is metaphorically crapping all over NFG–and the company is signaling its willingness to retaliate by leaving. No, not move the company HQ, or sell off its gigantic utility business. Nothing of that sort (yet, anyway). But NFG CEO Ronald Tanski said on an earnings call last Friday that NFG is “getting lousy regulatory treatment in New York State” and that “Given this type of regulatory treatment in the state, we have to take a serious look at our ability to achieve any reasonable growth in New York.” Translation: We’ll stop launching new projects that invest billions in the Empire State, and instead invest that money and the jobs it creates in PA and other states. The “lousy treatment” NFG is getting is related to NY’s corrupt Dept. of Environmental Conservation decision to deny it permits to build the Northern Access Pipeline (see NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling”). NFG has taken the Cuomo DEC to court to try and get the DEC’s capricious pipeline decision overturned. However, the damage is now done. NFG is threatening to invest elsewhere–and we take them at their word. This is not an empty threat…
    Read More “NFG Update – Getting “Lousy Treatment” in NY, Threatens to Leave”

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    Ohio DNR Issues New Pooling Guidelines for Drillers

    Last week the Ohio Dept. of Natural Resources (ODNR) issued updated guidelines for “statutory unitization applications” (full copy below). That is, when a driller wants to form a unit for drilling by combining adjacent properties, the driller must first request permission from the ODNR to form a unit. In Ohio, a unit can be formed when the driller has 65% of the acreage in the unit under a lease agreement. In other words, these are the revised/new guidelines (i.e. hoops) drillers must jump through before the ODNR will agree to combine either willing, or unwilling (force pooled) landowners into a unit for drilling… Read More “Ohio DNR Issues New Pooling Guidelines for Drillers”

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    TransCanada Sells Iroquois Pipeline to Itself, Part of $765M Deal

    Last week TransCanada announced they are “selling” their interest in the Iroquois Gas Transmission pipeline and a second pipeline, Portland Natural Gas Transmission System (PNGTS), to a subsidiary of TransCanada for $765 million. Every now and again big energy companies transfer some of their assets to different subsidiary companies, on paper. We say “on paper” because nothing really changes with the management of the assets–in this case two pipelines. However, money does change hands because usually there are different sets of investors for the different subsidiaries. So TransCanada “sold” themselves (different set of investors) these two pipeline systems. Iroquois is majority owned by TransCanada–in two pieces. After the drop down sale, TC PipeLines will own both pieces, representing 61.1% of the Iroquois system. Iroquois is a 416-mile interstate natural gas pipeline extending from the U.S.-Canadian border at Waddington, NY, through New York State and western Connecticut to its terminus in Commack, NY, and from Huntington to the Bronx, NY. The second pipeline part of the transfer deal is PNGTS–an interstate natural gas pipeline company providing natural gas transportation service for gas utilities, paper mills, and electric generation plants throughout New England. Here’s info about the deal, and an overview for each pipeline system… Read More “TransCanada Sells Iroquois Pipeline to Itself, Part of $765M Deal”