Industrywide Issues

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    OH Anti Jailed, Pleads Guilty to 13 Felony Counts of Voter Fraud

    One of the people behind the Big Green effort to pass a frack ban in Youngstown, OH (a measure that has now failed six times) has herself been arrested and has plead guilty to 13 felony charges of committing voter fraud. Rebecca Hammonds, a local organizer and employee of the Ohio Organizing Collaborative, was sentenced to 180 days in jail this week after pleading guilty to 13 felony counts for false voter registration and election fraud in January. One of the charges had to do with her signing up dead people to vote. Do we need to say anything more about the dishonesty of the anti-drilling movement?…
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    OH Court Rules Landmen Need to be Licensed Real Estate Brokers

    We know this is an important story, and we know that some (many?) MDN readers will be interested. But this is one of those rare cases where we just can’t get our heads around the scope and importance of the story–and who it really affects. We had thought that landmen in Ohio (agents who deal with landowners and mineral rights owners, getting them to sign leases or easements) did not have to be licensed real estate agents in order to do their job. However, a court case just decided in Ohio’s Seventh District Court of Appeals seems to say that at least some landmen DO need to be licensed real estate agents, in order to get paid a commission on deals they’ve brokered. We don’t think the decision requiring a real estate license applies to all landmen in Ohio (although we’re open to correction on that point). Below we have information about the Dundics v. Eric Petroleum Corp. case, along with previous info from 2014 that indicates the reverse–that Ohio landmen DO NOT need to be licensed real estate brokers. Does the Dundics case supersede previous rulings? Is the Dundics case dealing with an obscure situation that doesn’t apply to all landmen? We simply don’t know…
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    PA DEP Sec McDonnell Defends Overreach of GP-5/5A

    At last week’s Oil & Gas Awards’ 2017 Northeast Industry Summit, MDN editor Jim Willis heard former Pennsylvania Dept. of Environmental Protection (DEP) Secretary, Michael Krancer, say that the DEP’s proposed changes to General Permit (GP) 5 and 5A are “a big deal” and that the permits, as drafted, have the potential to stop PA natural gas production for 12-18 months while new regulations get sorted out (see Big News from the O&G Awards Northeast Industry Summit). We’ve written a fair bit about GP-5/5A, most recently in December (see PA DEP Extends Public Comment Period for Methane Regs). Our take on GP-5/5A is that it will target a reduction in fugitive methane. However, Krancer said the new rule would also stop any new pipeline construction through wetlands (virtually any and all new pipelines) until new permitting procedures are hashed out–hence his startling statement about production stopping for more than a year. Krancer also said GP-5/5A will regulate small gathering lines. PA’s legislators are very concerned about GP-5/5A and submitted a letter to DEP Acting Secretary Pat McDonnell in February with 21 questions about the new rule change. McDonnell met with several Senators and subsequently responded, in writing, by addressing each of the 21 questions. We have McDonnell’s letter and responses below…
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    NETL Research Discovers Microbes May Make Marcellus Gas Renewable

    NETL researcher Yael Tucker uses a special bio-reactor to study microbes from shale samples – click for larger version

    Dr. Yael Tucker, a research scientist working for the National Energy Technology Laboratory (NETL) at West Virginia University (Morgantown, WV), continues to make important discoveries that have the potential to increase Marcellus Shale production. Her work involves tiny microbes. Dr. Tucker’s work “shakes the general assumption” that methane gas from the Marcellus is all thermogenic–or the result of decomposing dinosaurs put under extreme heat and pressure over long periods. At least some methane in the Marcellus, according to Tucker, is biogenic–the result of tiny LIVING microbes doing their thing. In other words, natural gas may be renewable! Who knew?! Tucker’s research has huge implications: “…there may be a faster recovery time than expected for the renewal of gas reserves” in Marcellus reservoirs. Contrary to the “leave it in the ground” dunces who say once the gas is gone it’s gone, now we know we can take it out and at least some of it will magically reappear again. Renewable. Sustainable. Shale gas…
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    7 Major Marcellus/Utica Pipelines Coming This Year & Next

    Yesterday MDN brought you a story about the difference, in the price drillers get for their gas, that a single pipeline can make (see The Difference One Utica Pipeline Can Make on Gas Prices). That story was about how the Rockies Express Pipeline (REX) reversed its flow from Ohio to Missouri adding 800 million cubic feet per day (MMcf/d) of extra capacity for a total of 2.6 billion cubic feet per day (Bcf/d) of gas now flowing from the Utica/Marcellus to the Midwest. REX is an existing pipeline. Just think about all of the pipeline projects in the queue for the Marcellus/Utica. In fact, there are seven major projects that are either already-approved by the Federal Energy Regulatory Commission (FERC) or under review now. If you add them all together, it represents almost 12 Bcf/d of additional natural gas flowing out of our region to other regions, where it will fetch higher prices. What are the seven projects? How much gas will each flow? When will they go online? We need a scorecard! We now have one…
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    Antis Try to Stop Buffalo-Area Coal Plant Conversion to NatGas

    NRG Dunkirk coal plant

    In 2013, a coal-fired electric generating plant near Buffalo (in Dunkirk) was slated to be converted to burn natural gas–a win/win for everyone (see Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas). Radical environmentalists like the Sierra Club opposed it, but that’s to be expected. Crazy people do crazy things. Everything seemed to be fine until a competitor hauled NRG, the plant’s owner, into court to dispute the change from coal to natgas. They objected to ratepayers kicking in $150 million for the project. NRG said fighting the case in court will take years, so they just closed down the plant instead (see Dunkirk, NY Coal-Fired Electric Plant Closing in January 2016). It was an economic nuclear bomb for that community. The Town of Dunkirk gets 40% of its tax revenue from the plant. New York State “generously” shucked out $5.5 million so Dunkirk wouldn’t collapse economically. But doing that year after year will get old quick. Other communities can rightly demand state help too. But then the competitor who had objected to converting the old coal plant to natgas (with ratepayer assistance) dropped their objection, and NRG restarted the project in December (see Coal-to-Gas Plant Conversion in Western NY Back from the Dead). But once again, the environmental lunatics who would rather bankrupt Dunkirk than let the plant restart as a gas-fired plant, are lobbying the state Public Service Commission to block the deal…
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    Josh Fox, Maya & Friends Plan to Protest Any FERC Appointments

    You know it’s a slow week for anti-fossil fuel crackpots like Josh Fox and Maya van Rossum (THE Delaware Riverkeeper) when they have to hold a conference call to begin protesting something that hasn’t even happened yet. The Donald has been a busy boy, trying to weed out Obamadroids deeply embedded in the federal government. The President is responsible to appointing something like 5,000 people to positions throughout the federal government. Most of them pass through Presidential Personnel (an office MDN editor Jim Willis once worked in during the Reagan Administration, back in the Jurassic period) and do not require Congressional approval. But one agency of primary concern for us, the Federal Energy Regulatory Commission (FERC), is still missing three of five Commissioners. Trump has not (yet) put forward nominees to staff it, nominees who will have to be approved by the Senate. But lack of nominees isn’t stopping Josh Fox, Maya van Rossum, a PA pig farmer and others with an abject hatred of FERC because FERC is responsible for evaluating and approving pipeline projects. You know, pipelines that flow evil, disgusting, horrible fossil fuels that are poisoning Mom Earth. On a conference call scheduled for tomorrow, Josh, Maya & friends will outline their opposition to ANYONE Trump puts forward. Doesn’t matter who it is. The Dalai Lama? Against him. BH Obama? Against him too. Meryl “hates Donald Trump’s guts” Streep? Against her, even though she’s a hater. Queen Hillary? She’s yesterday’s news. Mickey Mouse? Set out a mousetrap. That will be the strategy outlined on tomorrow’s conference call…
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    FERC Green Lights Rover Pipeline Construction

    Along with chainsaws buzzing (until Mar. 31) and wood chips flying, Rover Pipeline has now started the backhoes. As MDN previously reported, on Feb. 3 the Federal Energy Regulatory Commission (FERC) gave its final approval for Energy Transfer’s Rover Pipeline project, 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 (see ET Rover Pipeline Gets Final Approval by FERC). At the time we observed Rover had received permission to clear trees before the Mar. 31 “can’t kill roosting bats” deadline. However, Rover did not have permission to begin digging trenches and laying pipeline. That permission came this past Friday…
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    Statoil WV Tax Overpayment Court Case – Money “Already Gone”

    Statoil, based in Norway, is a big player in the West Virginia Marcellus Shale. Statoil paid property taxes to Brooke, Marshall, Ohio and Wetzel counties (all in WV) in 2015 and later found, during an audit/review, that they had overpaid those counties. They overpaid Brooke by $1.8 million, Ohio by $2.9 million, Wetzel by $1.6 million and Marshall by $342,000 (see Statoil Wants Millions in Refunds from Tax Overpayments in WV). The WV Tax Department argued that Statoil “acted negligently” and exercised “poor judgment” in not finding the mistake sooner. All four counties voted to deny Statoil’s request, so Statoil took them to court, asking the West Virginia Supreme Court of Appeals to hear the case. However, the Appeals court ruled that the cases are not “complex” and don’t require “special treatment,” so back to county court the cases went (see Statoil’s Tax Overpayment Cases Bounced Back to WV County Courts). A hearing was held last Friday in the case. There’s not much in the way of new news to report, other than Statoil wants the cases combined and the counties would prefer to keep the cases separate. The other bit of information is that the overpayments were spent about as quickly as they were received, and the counties are expressing angst over where they will find the money to issue a refund check, should the court case(s) go against them…
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    43 Existing/Planned Gas-Fired Elec Plants Overtaking Coal in OH

    Click for larger version

    Ohio currently has 15 coal-fired electric plants producing 15,322 megawatts of electricity, and 33 natural gas-fired plants producing a maximum of 9,449 megawatts. Most of the existing natgas plants were built to serve small areas or for use during times of peak electricity demand. But that’s changing. Ohio is seeing coal-fired plants retire, and new large natgas plants rise up to take their place. Many of the existing 33 natgas plants generate 25-30 megawatts of electricity. But the new plants planned are close to, or exceed, 1,000 megawatts. Beasts! It’s a fair statement to say that natural gas (specifically shale gas) is “changing the electricity grid landscape” in the Buckeye State. Below is an article outlining how natgas is changing electricity in Ohio, along with a list of the 33 existing, 5 approved and five proposed (43 in all) natural gas-fired electric plants in Ohio…
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    Ohio EPA Begins Using New General Permits for Compressor Stations

    Compressor stations in Ohio, needed to flow natural gas through numerous new pipelines being built, require a permit from the Ohio Environmental Protection Agency (EPA) in order to get built. The Ohio EPA considers each application independently, a laborious and long process. In an effort to streamline that process, the Ohio EPA began work on a plan in September 2015 to issue “general permits” for compressor stations (see Ohio EPA Seeks “Pre-Comments” on Compressor Station Permit Plan). A general permit is, essentially, a cookie cutter approach. If midstream companies agree to the provisions in the general permit, i.e. they commit to using certain types of equipment and certain standards, the permit process will speed along much faster. In April 2016 Ohio EPA floated draft versions of the new general permits (see Ohio EPA Seeks Comments on New Permits for Compressor Stations). The long wait is over. Ohio EPA announced last week that the new general permits (there are a BUNCH of them) are ready for use…
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    The Difference One Utica Pipeline Can Make on Gas Prices

    What happens when you build a major interstate natural gas pipeline–and you’ve guessed wrong about the market. That happened to Tallgrass Energy and their Rockies Express Pipeline (REX), which runs from Colorado and Wyoming in the West to Ohio in the East. The REX Pipeline was completed in 2009, just in time for the shale revolution to begin in the Marcellus and now in the Utica. What to do when you’re pumping gas into a saturated market? You reverse the flow (see Reversing the Fortunes for “Wrong Way” REX Pipeline). On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO (called Zone 3) reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. In January 2017, REX completed the reversal project and now flows 2.6 Bcf/d of Marcellus/Utica gas to the Midwest (see REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West). The ace researchers at Natural Gas Intelligence have been looking at prices Utica drillers were able to get for their gas at key locations before and after REX reversed the pipeline and have found that single pipeline has “erased” the price differences between Utica and Marcellus gas. That is, Utica drillers now fetch much higher prices for their gas, everywhere they sell it (in Ohio and out), because of the REX pipeline and the new markets it has opened up…
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    Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster

    Click for larger version

    Anti-fossil fuelers opposed to the Williams Atlantic Sunrise Pipeline project–a $3 billion, 198-mile pipeline running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County–are using the same (losing) playbook to oppose Atlantic Sunrise as they used to oppose the Dakota Access Pipeline. They claim, falsely, that the pipeline will disturb ancient Indian burial grounds and other hogwash about disturbing archaeological sites. As we’ve previously reported, local antis in Lancaster County, PA aided and abetted by national Big Green groups hope to recreate the disaster of Standing Rock, ND in Lancaster County, PA (see PA Anti Hopes to Bring Standing Rock Disaster to Lancaster County). As we reported last week, most of the funding for their troublemaking is coming from a British cosmetics company nobody ever heard of (see Cosmetics Firm, Church Fund Anti “Camps” Against Atlantic Sunrise). Just in case the general reading public is too stupid to understand that Lancaster is the new Standing Rock, they’ve painted “Welcome to the Stand” (channeling Standing Rock) on the side of a barn near where the Atlantic Sunrise Pipeline is due to run. And they openly admit, even trumpet the fact, that “Standing Rock is the playbook” they are using. That is, they seek anarchy and lawlessness as their preferred means to bully other people into doing something they want done…
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    Antis Find Solace in Bay’s Final Pot Shot at FERC

    Norman Bay, formerly of FERC

    Anti-fossil fuel groups adamantly opposed to new pipeline projects are finding solace, and perhaps legal assistance, in the remarks made by former Federal Energy Regulatory Commissioner Norman Bay. There were three FERC Commissioners, the minimum required to vote on projects, until Bay left. Why did he leave? When Bay (a Democrat) joined FERC, he was promoted by Barack H. Obama to be the Chairman of the Commission, displacing Cheryl LaFleur (another Democrat) from her role as Chairman. LaFleur didn’t let Obama’s decision affect her–she stuck around and kept working. When Donald Trump took office, he decided, which is his prerogative, to elevate LaFleur to be Chairman once again, “demoting” Bay to regular old Commissioner. Bay immediately resigned in a huff. Thing is, Bay’s resignation was calculated to do maximum damage to current pipeline projects under review, most of them in the Marcellus/Utica. On his last day in office, along with a flurry of FERC approvals, Bay issued a statement as part of one of the approvals that FERC should “analyze the environmental effects of increased regional gas production from the Marcellus and Utica” shale regions (see FERC Commissioner Norm Bay Targets M-U on Way Out the Door). Now, anti-fossil fuel lawyers are using his words to help make their case against authorizing pipeline projects…
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    Cosmetics Firm, Church Fund Anti “Camps” Against Atlantic Sunrise

    Ding dong–Lush is calling. A British cosmetics company (think UK version of Avon), looking to get bought-and-paid-for publicity here in the states, has donated $22,000 to the anti-Atlantic Sunrise Pipeline group, Lancaster Against Pipelines (LAP). Anti-drilling losers like those in LAP would flare out if not for the backing of companies and Big Green groups with deep pockets. Which cosmetics company did the donating? The name is Lush. You’ve never heard of them and almost certainly have never purchased any of their forgettable products–which is why they donate money to groups like LAP, to get far more exposure than advertising can buy. There’s enough nutjobs out there that will buy products from companies like Lush to make “donating” money for “causes” to these groups a profitable venture. Another funder of LAP? The Universal Unitarian Church in Lancaster, which forked over $5,000 of parishioner contributions to LAP. Hello IRS! Will you please investigate the non-profit Universal Unitarian Church for giving money to an overtly political cause? Who else is donating money to the small group of LAP rabble-rousers?…
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    WV Hare Krishnas Settle with Rover Pipeline, Crossing Commune

    Here’s an interesting story. A religious commune of Hare Krishnas in Marshall County, WV steadfastly refused to sign an easement with Rover Pipeline to allow the pipeline across ~3,000 feet of commune-owned property. Rover had offered the Krishnas $7,000 for the easement, but no dice. You may recall that the Krishnas have no problem accepting oil and gas money, and have done so by leasing their land for shale drilling–even though the official view of the Krishnas is that “gas drilling is exploitative, that it is unsustainable and ‘contributes to the culture of death and toxicity’” (see WV Hare Krishnas “Purify” Gas Money to Benefit Commune). Apparently when there’s enough money involved, official Krishna doctrine changes. Back to Rover. On Tuesday, the Krishnas filed a lawsuit in federal court to block Rover from using eminent domain to enter the property to cut trees–a lawsuit based on religious grounds. A hearing was held on Thursday in federal court in Wheeling. The Krishnas loaded a bunch of followers into a fossil fuel-belching van to cart them to the court house to protest and make a scene. Lots of publicity. The judge granted a brief recess to allow the two sides to talk, and following the recess the Krishnas and Rover announced they had signed a deal. The official line is that Rover is changing the route of the pipeline to avoid certain holy places on Krishna property. The pipeline will now traverse MORE Krishna property–nearly twice as much more (5,300 feet). So much for objecting to the pipeline based on “religious” grounds, right? What is not mentioned, conspicuously so, is how much more money the Krishnas were able to get out of Rover, so Rover could make the bad publicity go away…
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