Industrywide Issues

  • | | |

    More on Gas-Fired Elec Plant Coming to Center Port Terminal

    A few weeks ago MDN reported on an upcoming meeting (to be held March 27) in Monroe County, OH to announce a new project to build a 485-megawatt Utica gas-fired electric plant (see Gas-Fired Plant (& Cracker?) Coming to Center Port Terminal in OH). The rumors circulating were that this plant may get built to power a new, mini-cracker plant in the region. MDN reader and friend Charles Winslow, owner of The Wells Inn in Sistersville, WV, attended the March 27 and reports a question came up at the meeting about the purpose for the power plant. The answer? According to the people building the project, they plan to sell the electricity on the open market–to the regional electric grid. No hidden motives in powering a mini-cracker. Charles filed this excellent report…
    Read More “More on Gas-Fired Elec Plant Coming to Center Port Terminal”

  • | | |

    The 411 on the 9 Proposed Pipeline Projects in WV

    West Virginia has become a hotbed of pipeline projects. You don’t realize it until you stand back and consider all of the proposed projects for major interstate natural gas (or gas liquids) pipelines. There are, in fact, nine such major projects on the board. Some of them either are, or soon will be, under construction. Not all of them are yet approved by their respective regulatory agencies–but most are. If we were to bet, we’d bet most of the nine will get built. Can you name all nine projects? Let us give you some help: Atlantic Coast, Mountain Valley, Western Marcellus, WB XPress, Leach XPress, Mountaineer XPress, Buckeye XPress, Rover, and Appalachian Storage Hub. Actually that last one, the storage hub, is a series of six pipelines–but we lump them all into one project. Here’s a summary of each project, most of them coming soon to the Mountain State…
    Read More “The 411 on the 9 Proposed Pipeline Projects in WV”

  • | | | | |

    Fed Court Overturns $4.2M Dimock Judgement Against Cabot O&G

    Big news broke Friday afternoon. Short history lesson for those who are new to MDN: There were 14 families along the Carter Road area of Dimock Township, PA (Susquehanna County) that reportedly experienced turbidity in their water from methane migrating, supposedly from Cabot’s drilling operations nearby. The state Dept. of Environmental Protection (DEP) investigated in 2010 and declared Cabot guilty and imposed stiff fines and requirements, including a requirement to install permanent water treatment systems at each home and even an offer to each of the families to pay twice what their property was worth at the time (see PA DEP Takes Aggressive Action Against Cabot Oil & Gas over Dimock Township Methane Contamination). We won’t recount all of the twists and turns we documented over the years, including research that showed Cabot wasn’t responsible for the methane migration. All of the 14 properties either sold to Cabot or got their water systems repaired–except for two holdout families who were riding the horse of hope that they could sue Cabot for big money and retire millionaires. For a time, it appeared their plan worked. Last year, in March 2016, a trial took place in Scranton. It was a sham trial, with the lawyer for the two families engaging in borderline unethical practices in the courtroom in her attempt to influence the jury. One of the two families admitted, under oath on the witness stand, that their water had too much methane in it BEFORE Cabot Oil & Gas began to drill nearby. The same family, the Elys, later built a 22-room, $1 million mansion on the same property AFTER they admit there was trouble with the water. And yet the jury found Cabot at fault and awarded the Elys $2.75 million. The other family suing Cabot got $1.49 million. As we said at the time: “That’s called brain-dead. A total miscarriage of justice–stupidity on the same level as the OJ Simpson jury” (see Dimock Jury Levies $4.24M Judgement Against Cabot in Dimock Case). Indeed it was brain-dead, as we now see from a federal court which heard Cabot’s appeal. On Friday a federal judge tossed out the $4.24 million verdict against Cabot, calling the evidence against Cabot “spare, sometimes contradictory, frequently rebutted by other scientific expert testimony, and relied in some measure upon tenuous inferences” (full copy of the ruling below). Unfortunately the judge did not find for Cabot and dismiss the case, but instead ordered a new/second trial. However, the new trial will not happen in state court amateur hour–instead it will happen in federal court–IF it happens…
    Read More “Fed Court Overturns $4.2M Dimock Judgement Against Cabot O&G”

  • | | | | | | | |

    Atlantic Sunrise Uses Eminent Domain in Northeast & Central PA

    As sometimes happens, Williams has had to file 27 eminent domain lawsuits against landowners in northeastern and central Pennsylvania–landowners who have refused to negotiate with the company to allow the now FERC-approved Atlantic Sunrise Pipeline to cross their property. We understand the reluctance of some landowners who would rather not have the pipeline cross their property. But we also understand the necessity of the project–and the need to be reasonable. Some landowners are not reasonable. And so eminent domain is a rare, option-of-last-resort necessity in those cases. But don’t shed too many tears for landowners now being sued. One PA landowner in Luzerne County (Wilkes-Barre area) was originally offered $260,000 for an easement on 7.6 acres of land ($34,211/acre!). He refused. The price has now dropped to $225,000. Guess he should have signed before eminent domain was on the table…
    Read More “Atlantic Sunrise Uses Eminent Domain in Northeast & Central PA”

  • | | | | | |

    FERC Favorable EA for Millennium Pipeline Eastern System Upgrade

    The Millennium Pipeline stretches ~244 miles from Independence in Steuben County, NY to Buena Vista in Rockland County, NY. The Millennium, which is supplied by local production and storage fields and interconnecting upstream pipelines, serves customers along its route in New York’s Southern Tier region and helps meet the energy needs of northeast markets. In August 2016, the Millennium filed an application for what it calls its Eastern System Upgrade (see Millennium Pipe Asks FERC to Approve Eastern System Upgrade in NY). The ESU would add 7.8 miles of extra looped pipeline in Orange County, upgrade a compressor station in Delaware County, build a new compressor in Sullivan County and make some minor tweaks to metering stations in Rockland County. The ESU will pump another $275 million into the New York economy with the end result of increasing the flow of natural gas for New York and beyond by fall 2018. Despite the best efforts by THE Delaware Riverkeeper to stop this (and all other) pipeline projects, the Federal Energy Regulatory Commission issued a favorable environmental assessment (EA) on Friday for the project (full copy below). A favorable EA indicates the project is on track for a final approval this year. The projected in-service date is fall 2018…
    Read More “FERC Favorable EA for Millennium Pipeline Eastern System Upgrade”

  • | | |

    New Bill Would Goose PA DEP to Approve Drilling Permits Faster

    Pennsylvania State Rep. Jason Ortitay, Republican who represents of Washington and Allegheny counties in southwestern PA, last week introduced PA House Bill (HB) 1003 which would require the PA Dept. of Environmental Protection (DEP) to compile, organize and list all permits related to oil and gas drilling in two places: in one location in the Pennsylvania Bulletin, and on the DEP website. At first blush this seemed a bit odd to us. In the past MDN published a research report called the Marcellus and Utica Shale Databook. In producing that work, MDN editor Jim Willis would regularly (3x per year) access DEP permit data–which is available from the DEP website. Granted, the information is not the easiest to find, and when you locate it, you must download it and suck it into a database to get any meaningful value out of it. However, on a basic level, permit data IS available to the public from the DEP website–right now. We read a copy of the proposed bill (see it below). MDN’s takeaway after reading the bill: This bill has more to do with “encouraging” the DEP to speed up permit approvals than it does with making information publicly available…
    Read More “New Bill Would Goose PA DEP to Approve Drilling Permits Faster”

  • | | | | | |

    Big New Housing Complex Planned Near Shell Ethane Cracker

    Positive economic signs continue to pop up with respect to Shell’s multi-billion dollar ethane cracker project in Beaver County, PA. Here’s the latest major economic impact from the project. A local developer has filed for a state grant to build a massive new housing project 2.5 miles from the cracker site. The new project calls for 450 housing units, retail space, a golf course, swimming pool and parking garage. What’s that? What happens after the cracker is built and the “temporary” workers, who would be living in this new complex for the next 5-10 years, leave? Great question! Answer: Turn it into a retirement community…
    Read More “Big New Housing Complex Planned Near Shell Ethane Cracker”

  • | | | | | |

    Marcus Hook Propane Exports Heat Up

    Marcus Hook

    Over the past five years the U.S. has flipped from being a net importer of liquefied petroleum gas (LPG, or propane and butane), to being a net exporter. Why? Yep–shale drilling. Most of the LPG getting exported goes from the Gulf Coast. However, Sunoco Logistics’ Marcus Hook terminal near Philadelphia is now online and has, over the past 12 months, begun to make a big impact on the LPG export market. RBN Energy, with some of the best analysts in the business, recently turned their analytic eye on LPG in the northeast and provided a very interesting update on what’s happening at Marcus Hook. How much LPG is being exported–and where is it going?…
    Read More “Marcus Hook Propane Exports Heat Up”

  • | | | | |

    Video of Rover Pipeline’s Massive & Complex Construction in OH

    Rover Pipeline passes through tip of Richland Co.

    MDN spotted a story and video from an Ohio television station about the construction under way for Energy Transfer’s Rover Pipeline, in Richland County, OH. The video, taken from an airplane, shows just how massive and complex such a project actually is. The video shows the swatch being worked on, for miles and miles, to clear a right-of-way and the trench being dug to lay the pipe. We couldn’t count how many bulldozers, backhoes and people are working over the several miles the video covers. Again, it is a MASSIVE and complex project, with multiple locations where the builder must drill underneath roads, streams and other areas where you can’t just dig a trench. Below is a screenshot from one segment of construction in Richland County, and a link to watch the full 3 minute video (worth the watch!)…
    Read More “Video of Rover Pipeline’s Massive & Complex Construction in OH”

  • | | | |

    Enviros Shut Down Duke U Meeting Where FERC Chair to Speak

    Extremist environmental protesters who don’t want to hear any viewpoints other than their own (i.e., fascists who LOVE to suppress free speech), got a bit violent and ugly on Tuesday and shut down a meeting at Duke University (headquarters for insane environmentalism) where the Acting Chairwoman of the Federal Energy Regulatory Commission, Cheryl LaFleur, was scheduled to speak. Beyond Extreme Energy was one of the groups behind the illegal action. They have dogged FERC Commissioners for years. Perhaps some in the crowd were the same Beyond Extreme Energy lunatics that Pennsylvania Public Utilities Commissioner Rob Powelson previously called “jihadists”–because they show up at FERC Commissioners’ homes and threaten them (see Potential FERC Com. Powleson Calls Anti-Fossil Fuelers “Jihadists”). The lunatics at Duke forced their way into a meeting where LaFleur was going to speak, blathering on about FERC being a “rubber stamp” for the natural gas industry, which shows their complete and utter stupidity. The Beyond Extreme Energy extremists specifically object to bringing “fracked Marcellus and Utica gas” via Dominion’s proposed Atlantic Coast Pipeline to North Carolina. After shutting down the meeting using banners made in part from fracked natural gas, wearing clothes that come from petrochemicals, sneakers made from petrochemicals, arriving at the meeting via fossil-fuel powered vehicles, they went back to their dorms and homes–heated with natural gas. Pretty extreme, wouldn’t you say? Welcome to Wonderland, Alice…
    Read More “Enviros Shut Down Duke U Meeting Where FERC Chair to Speak”

  • | | | |

    FERC Grants Atlantic Bridge Pipe OK to Begin CT Construction

    In January the Federal Energy Regulatory Commission (FERC) gave its final stamp of approval for Spectra Energy’s Atlantic Bridge project (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 has “approved” Atlantic Bridge, Spectra Energy must still ask for “Mother May I?” permission to begin construction on specific, individual portions of the project. “Mother FERC, may I begin the bulldozers in Danbury, CT at the Danbury meter station?” And, “Mother FERC, may I begin construction at the Mill Plain Road Contractor Yard?” You get the picture. Spectra asked permission to begin construction at a variety of projects in Connecticut on March 14th (see Anti-Pipeline Jihadists Pressure FERC re Atlantic Bridge Project). Earlier this week FERC granted Spectra Energy permission to begin construction on all of their requests from the 14th…
    Read More “FERC Grants Atlantic Bridge Pipe OK to Begin CT Construction”

  • | | | | |

    FERC Grants Dalton Expansion Permission to Begin Flowing Gas

    In March 2015, Williams announced that its Transco pipeline subsidiary had filed an application with the Federal Energy Regulatory Commission (FERC) for its Dalton Expansion Project, which will expand the Transco and flow more Marcellus Shale gas from New Jersey all the way to Mississippi, primarily for electric generation plants, but also for local natural gas distribution by utilities (see Williams Files with FERC to Expand Transco Pipeline from NJ to MS). Most of the Dalton project will be built in, and benefit, the State of Georgia, by delivering natural gas to an existing electric generating facility in northern Georgia operated by Oglethorpe Power Corp., delivering gas for local distribution company Atlanta Gas Light, and delivering gas for the City of Cartersville. Transco has customers signed up under binding contracts for 100% of the Dalton Expansion Project, which will increase Transco’s capacity by 448,000 dekatherms per day of natural gas. FERC approved the Dalton Project last summer (see Marcellus/Utica Gas Heading to Georgia via FERC-Approved Pipeline). In February of this year, antis tried to use a creative new way to stop construction. They noticed that some of the pipe being used came from Greece, so they’re asking FERC to stop the project because it doesn’t use American-made pipeline (see Antis Ask FERC to Block Dalton Expansion Project, Using Greek Pipe). Nice try, but no cigar. Construction is now done and this past week the extra gas began flowing through the now-completed project. On Tuesday, FERC OK’d up to an extra 208,000 dekatherms (equivalent of 208 million cubic feet) of natgas to begin flowing. On Wednesday, FERC authorized the rest, another 240,000 dekatherms. The full 448,000 dekatherms of extra Marcellus/Utica fracked gas now flows south, all the way to Mississippi…
    Read More “FERC Grants Dalton Expansion Permission to Begin Flowing Gas”

  • | | | |

    Jobs in Building Trades “Strong” for Next 3 Yrs in OH Utica

    Those who oppose fossil fuels try various arguments to convince the general public that extracting oil and gas is bad for the environment. They claim (without facts or proof) that drilling pollutes the water, it pollutes the air, it does permanent damage to the environment. When faced with lack of evidence, antis slip-slide into other arguments against drilling and pipelines. An undeniable benefit from the shale industry is jobs. That includes jobs building pipelines. You need an army of bulldozers, backhoes, truckers, welders and construction workers to lay a pipeline (see today’s lead story and the awesome video of the Rover Pipeline getting built in Richland County). Antis say, “But jobs building pipelines and power plants and processing plants are temporary. They’re illusory. No long-term benefit.” We’ll never forget the powerful statement given at a hearing about the proposed Constitution Pipeline from Francis Cooney, a 28-year member of the plumber and pipe-fitters union. He said this in response to the “those jobs are temporary” meme offered by antis that evening: “For 28 years every job I’ve had has been a temporary job! My temporary jobs have put two kids through Syracuse University” (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). Which obliterates the nonsense about “temporary jobs.” Good news for Ohioans who work “temporary jobs” in the trades in Stark and surrounding counties: Dave Kirven, president of the East Central Ohio Building & Construction Trades Council, says there’s plenty of work for tradespeople–that demand is “strong” for tradespeople for at least the next three years. Why? Mostly due to the Utica Shale…
    Read More “Jobs in Building Trades “Strong” for Next 3 Yrs in OH Utica”

  • | | | | |

    Williams Closes Deal to Increase Ownership in NEPA Pipeline System

    Click for larger version

    In 2014 Williams bought out Access Midstream, the renamed and former division of Chesapeake Energy called Chesapeake Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). When Williams bought Access, one of the regional pipeline gathering systems it got as part of that deal is what Williams calls the Bradford Supply Hub (named after Bradford County, PA). In February, Williams announced a deal with a part-owner for portions of the Bradford Supply Hub, Western Gas, to buy out Western’s portion (see Williams Cuts Deal to Increase Ownership in NEPA Pipeline System). Through an elaborate deal, Williams gets Western’s 33.75% ownership stake in what is called the Rome and Liberty natural gas gathering systems (part of the Bradford Supply Hub), along with a check for $155 million. In return, Williams is transferring to Western its 50% ownership stake in the Delaware Basin JV Gathering pipeline system, located along the New Mexico/Texas border. That deal, first announced in February, is now done…
    Read More “Williams Closes Deal to Increase Ownership in NEPA Pipeline System”

  • | |

    Is PJM Electric Grid at Risk by Using More NatGas? Study Says No

    The nation’s electric grid is a complex system. You don’t ever think twice about–you flip a switch and the electricity flows, powering lights, appliances, etc. But ensuring the power is always there, always on when you need it, keeps a lot of people awake at night. The U.S. “grid” is actually a bunch of smaller grids. In the northeast there are several such organizations. One of them is called the PJM, a regional transmission organization (RTO) coordinating the movement of wholesale electricity in all or parts of 13 states and the District of Columbia (including PA, OH and WV). PJM, like other RTOs, faces challenges with ensuring there will always be enough electricity produced to meet demand. Over the past several years coal-fired electric generating plants have been closing. Natural gas, and in a much smaller sense renewables (wind and solar) have taken up the slack. Wind and solar are notoriously unreliable. The wind doesn’t always blow and the sun doesn’t always shine. Natural gas needs pipelines to get where it’s going. There has been a concern that with coal disappearing from the generation mix, that an “over-reliance” on natgas and renewables will make electricity supplies problematic and unreliable. In an effort to address questions of reliability, PJM just completed and published a 44-page study titled, “PJM’s Evolving Resource Mix and System Reliability” (full copy below). What does the study find? Even with fewer coal plants producing electricity, PJM’s electric supplies, using more and more natgas and renewables, will be just fine…
    Read More “Is PJM Electric Grid at Risk by Using More NatGas? Study Says No”

  • | | | | |

    Pipeline Jihadists “Double Down” on Other Pipes After Losing DAPL

    We don’t use the word “jihadist” lightly or flippantly. A jihad is, according to Websters, “a crusade for a principle or belief.” Most of the time the media uses the term in reference to radical Muslims who perpetrate acts of terror and crime in a holy war to convert the world to Islam. We think there’s a close parallel to some (not all) extreme environmentalists. It is irrefutable that many in the environmental movement view their cause as a kind of holy war–against those they believe are harming Mom Earth. Against those who don’t or won’t “convert” to their philosophy on how best to protect the environment (i.e. dump the use of fossil fuels). Some of these extremists tip over into criminal and even terrorist activities. We saw it in the protests of the Dakota Access Pipeline (DAPL) project in North Dakota, when so-called protesters vandalized millions of dollars of equipment, set tires on fire, illegally blocked roads, and (one) even shot at police officers (see Police Remove Pipeline Protesting THUGS from Private Land in ND). Last week, in a coordinated attack, holes were burned in two different Dakota Access Pipeline above-ground valve stations in two different states (see Eco-Terrorists Burn Holes in Dakota Access Pipeline in 2 States). With oil now flowing through DAPL (the antis lost), the same group of people who opposed DAPL are now pledging to “double down” on several proposed pipeline projects–to stop them by any means necessary. One of the projects targeted for aggressive opposition is Dominion’s Atlantic Coast Pipeline–right here in the Marcellus/Utica. Given their previous behavior, we think it’s warranted to label these people as environmental jihadists. We certainly hope the FBI is paying attention to their activities…
    Read More “Pipeline Jihadists “Double Down” on Other Pipes After Losing DAPL”