Industrywide Issues

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    Scott Pruitt Addresses 15K Employees of EPA (Transcript)

    Yesterday the Environmental Protection Agency’s new Administrator, Scott Pruitt, addressed the 15,000 employees of the EPA–many of them seething leftists who need to be fired. He was far more gracious in his remarks than we would have been. But then, that’s why he’s there and we’re here. 🙂 Pruitt was introduced by Acting Administrator Catherine McCabe and began his remarks with this: “You don’t know me very well. In fact, you don’t know me hardly at all other than what you’ve read in the newspaper and seen on the news. I look forward to sharing the rest of the story with you as we spend time together. This is a beginning. It’s a beginning for us to spend time and discuss certain principles by which I think this agency should conduct itself.” Reflecting on the time he spent earlier in the day greeting EPA career staff in his office, Pruitt said, “It was an honor and a joy to meet and spend time with the career people at EPA who are clearly very dedicated to their work.” Although Pruitt is a gentleman, he’s no shrinking violet. He put the staffers on notice that he believes federalism and the rule of law matters, and those concepts will guide the policies and decisions coming from the EPA from now on. In other words, the swamp is getting drained on DAY ONE. Below is a transcript of Pruitt’s remarks…
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    CO Bill Compensates Landowners, Drillers in Towns with Frack Bans

    Over the years MDN chronicled the long, sad battle in New York State over both a statewide moratorium on fracking, and on the issue of whether towns can ban fracking. The statewide moratorium, under Gov. Andrew Cuomo, continues. However, lawsuits filed against townships that enacted bans went all the way to New York’s highest court, the Court of Appeals–and in June 2014 we lost (see Shale Drilling in NY is Over – High Court Upholds Town Bans). There have long been rumors and talks among New York landowners about launching a “takings” lawsuit–in which landowners would get compensation from the state because the state has “taken” their right to lease land and allow drilling. If the state runs a highway over your land, they have to pay you fair market value for it. Same principle. But so far, a takings lawsuit has not materialized in New York. Perhaps we can look to the west–to Colorado–to see how we still might prevail. A Colorado legislator has introduced a bill in Colorado that would allow landowners (and drillers) to sue local towns in the state that pass fracking bans–using the principle of takings. Should we consider such legislation in New York?…
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    Antis Nervous that DRBC is Making Moves to Lift PA Drilling Ban

    We now have a bit more of the back story and reason why anti-frackers turned out in large numbers to attend last Thursday’s meeting of the Delaware Basin River Commission (see Anti-Fracking Protesters Turn Out in Force at DRBC Meeting). As we noted, antis carpooled protesters in from New York City and other locations. On the agenda were two items that had them irked: (1) a short, 8-mile pipeline that will cross through a small sliver of DRBC-controlled territory, and (2) adoption of a two-year water resource plan “that instructs staff to carry out the commission’s natural gas regulations.” The antis are concerned the water plan will restart the discussion on regulations to allow fracking. Overactive imaginations? Maybe not. An AP story brings new details to light we had not previously read. THE Delaware Riverkeeper and others have “learned” that “recently” the PA Dept. of Environmental Protection held a meeting with DRBC staffers to discuss “draft regulations for drilling in the Delaware watershed.” THAT’S what had the antis all hot-and-bothered and showing up in large numbers. We’re now going on six years that the DRBC has blocked drilling by shelving regulations they had drafted to allow drilling in the Delaware River Basin–at least in PA. Last year a landowner from Wayne County, PA sued the DRBC, asking the courts to rule the DRBC has no right to block drilling (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). Here’s the article that sheds new light on the nervous Nellies of the Delaware…
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    Mariner East 2 Pipeline Constructions Begins Across PA

    Pop the cork on the champagne bottle! Sunoco Logistics Partners has begun construction of the Mariner East 2–a $2.5 billion, 306-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. Last week the Pennsylvania Dept. of Environmental Protection (DEP) gave its final approval for the project (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). It didn’t take long for a coordinated attack from the the enviro left–THE Delaware Riverkeeper, the Philadelphia-based Clean Air Council and the Mountain Watershed Association (see Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe). However, their efforts have (so far) failed, as we observed yesterday (see Last Minute Attacks Fail to Stop Mariner East 2 Pipeline Progress). Although you can’t discount a liberal judge throwing up roadblocks, the very good news is that construction has begun across PA–in Delaware County in the east, Huntingdon County in central PA, and Washington County in the west…
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    Frackenstein Returns – Insights on Microbes in Fracked M-U Wells

    For the first time, scientists reconstructed the genetic material from microbes in shale formations (represented here) being drilled for natural gas – click for larger version

    Last year MDN shared with you the news that researchers from Ohio State University analyzed the genomes of microorganisms (i.e. bacteria) that live in Utica Shale wells and found little communities of microscopic critters that live in those shale wells, including a brand new critter that lives only in fracked Utica Shale wells (see Frackenstein! Researchers Find New Life Form in Fracked Utica Wells). The hypothesis is that fracking itself created this new mutated life form. The researchers call this new microorganism “Frackibacter” (pronounced frack-uh-back-tor). We call it Frackenstein! Who knew fracking didn’t destroy life, but actually creates it?! Not long after the original announcement, those same researchers, in poring over their data, discovered those tiny critters may actually INCREASE natural gas output from the well (see Frackenstein 2: Gassy Utica Critters May Increase Well Output!). Since that time the same researchers have continued to review their data and now have important insights to add: microbes from the surface get injected deep in the earth during the fracking process. And those microbes do a good job of adapting and surviving, even in an environment with a lot of chemicals and minerals. That adaptation means more methane is produced, but it also means more corrosion of pipes and equipment. The researchers hope scientists will use this information to produce better fracking fluids and equipment used to extract natural gas…
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    OH Fight to Re-Regulate Electric Industry – Impacts on Shale

    In January we brought to your attention a developing situation–a fight, really–by a few large regulated electric utilities that seek to have Ohio re-regulate the electric industry (see OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation”). We make no bones about the fact we think that’s a very poor idea. It will have the effect of raising electric rates for consumers, and eliminate unregulated shale gas power plants. It is a move by big corporations to eliminate competition–using Ohio’s laws do it. Three of the state’s biggest electric utilities trying to do this: FirstEnergy, American Electric Power, and Dayton Power and Light. Shame on them. One of the most vocal critics of re-regulation is Bill Siderewicz, the owner of Clean Energy Future (based in Boston). Clean Energy is in the process of building two Utica gas-powered electric plants in Lordstown, spending more than a billion dollars to do it. If re-regulation happens, those plants won’t open. Is there a case to be made for re-regulation? Is Siderewicz correct in his assessment that re-regulation is simply re-monopolization under a new name? A recent article in the Youngstown Vindicator does a good job of presenting both sides of this very important issue…
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    OH Company Joins Team to Develop Low-Pressure CNG Tank for Cars

    A. Schulman, Inc., headquartered in Fairlawn, OH, supplies plastic compounds and resins which are used as raw materials in a variety of markets. Yesterday the company announced that they will join several other companies in a joint effort to develop and produce the world’s first commercially viable low pressure natural gas storage tank for motor vehicles. A year ago MDN brought you news about a breakthrough in CNG (compressed natural gas) tanks for passenger vehicles (see New CNG Tanks on the Way for Passenger Vehicles – Game Changer?). The typical CNG fuel tank is big and bulky and holds compressed gas at a pressure of 3,600 pounds per square inch (psi). United Technologies Corp. innovated a new tank that is much smaller, using “activated carbon adsorbents” technology that will allow CNG to be stored at 1,000 psi. United Technologies licensed their technology to Adsorbed Natural Gas Products, Inc. (ANGP) which will manufacture the new fuel tanks. A. Schulman announced yesterday they are partnering with ANGP to make manufacturing those tanks possible…
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    Scott Pruitt Confirmed to Lead EPA – Swamp Draining Begins

    New EPA Administrator Scott Pruitt

    Last Friday Oklahoma Attorney General Scott Pruitt was confirmed by the U.S. Senate to become the next Administrator of the Environmental Protection Agency. This is seriously great news. In 2014 MDN editor Jim Willis moderated a panel discussion at an industry summit held in Oklahoma City and heard Mr. Pruitt in person. Here’s what Jim said at that time: “Be sure to watch the very first video on the Midcontinent page. It is the keynote delivered by Oklahoma Attorney General Scott Pruitt. Jim just about stood up to cheer when he talked. Wow! We later joked (in the third session) that we’d be happy to trade our AG in NY for Pruitt any day of the week. Pruitt’s talk was outstanding.” (See Oil & Gas Awards Summits, Looking Back & Looking Forward [Video]). Ever since he was nominated we’ve been jazzed. The EPA under Obama has been a rogue, out-of-control agency. A labor union representing more than 9,000 EPA employees actively opposed Pruitt’s confirmation. We personally think those 9,000 employees should be fired. Reagan did it with recalcitrant air traffic controllers when their union went on strike–and air traffic control is a whole lot more important when it comes to the daily safety of Americans than the EPA. If the employees try to block Pruitt from doing his job–out they go. At any rate, when the final Senate vote was tallied, RINO Susan Collins of Maine once again showed she’d rather be a Democrat than a Republican, voting against Pruitt. On the other side, two scared-to-death-they-won’t-win-reelection-next-year Democrats, Joe Manchin of West Virginia and Heidi Heitkamp of North Dakota, voted for Pruitt. Mysteriously, the EPA website now welcomes their new Administrator with open arms (funny how that works). Today will be his first day on the job since yesterday was a holiday. Pruitt has already said that Obama’s Clean Power Plan and horrible Waters of the United States regulations are toast. Let the swamp draining begin!…
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    Shell Launches LNG Outlook 2017 – Rapid Growth Ahead

    Click for larger version

    On Monday, Shell launched its first-ever “LNG Outlook,” an assessment of the global liquefied natural gas (LNG) market. Shell, you may recall, purchased BG in 2016 (announced in 2015), the largest such deal (at $69.7 billion) since Exxon bought Mobil and merged it in. The reason for the purchase? LNG (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). According to the outlook released by Shell yesterday, global demand for unliquefied natural gas is expected to increase by 2% a year between 2015 and 2030, while LNG demand will rise at twice that rate–4 to 5% per year. The outlook says that while many expected a big increase in new LNG supplies that would outpace demand in 2016, something unexpected happened. Demand for LNG kept pace with supply due to a spike in demand coming from Asia and the Middle East. Two of the fastest growing buyers are China and India, growing their imports at a steep clip. Add to that, six new countries began importing LNG last year: Colombia, Egypt, Jamaica, Jordan, Pakistan and Poland. What it all spells is that even with more LNG supplies coming online in the U.S. (and other countries, like Australia), the demand is there to sop up the supply. Here’s the Shell LNG Outlook, first edition…
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    DEP Says Fracking at PA Utica Wells “Likely” Caused Earthquakes

    On Friday, the Pennsylvania Dept. of Environmental Protection held a hastily-called webinar to discuss findings that, frankly, aren’t all that newsworthy or surprising. After 10 months of study, the DEP has concluded that zipper fracking activities by Hilcorp in Lawrence County, PA “likely” caused a series of earthquakes in April 2016 so minor that nobody could feel them. And the DEP concluded this after 10 months of study, when a week before the DEP itself issued the permits to drill in Lawrence County, Hilcorp drilling was shut down about seven miles away, across the border in Mahoning County, Ohio, for potentially causing low-level earthquakes there (see Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone). It wasn’t exactly rocket science to connect the dots and speculate that fracking over top an active fault had caused the low-level earthquakes on the PA side of the border, as it had on the OH side of the border. As we’ve stressed multiple times here on MDN, earthquakes related to shale are almost always connected with injection wells–when large amounts of liquid are injected near a fault. Earthquakes from fracking activities are rare–like under 10 times, ever, out of millions of fracked wells. Statistically zero. Still, let’s not let a good “crisis” go to waste. The DEP, in releasing a report about the incident (full copy below), said they will work up new regulations to detect and prevent such statistically zero occurrences from happening again…
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    Dealing with Pipeline Cos. – Lessons re Rover’s Eminent Domain

    Two weeks ago MDN ran a story about the fact that time has run out on recalcitrant landowners in Ohio who have refused to negotiate with Rover Pipeline–and are now being sued using eminent domain (see Time’s Up – Rover Pipe Uses Eminent Domain on Holdout OH Landowners). Because of our nutty (or should we say batty) environmental regulations that require pipeline companies to clear trees only from Oct. 1 to Mar. 31 due to U.S. Fish and Wildlife regulations against disturbing nesting bats, and because the Federal Energy Regulatory Commission (FERC) was slow off the mark in approving the Rover project, the company must now clear trees in double time. There is no time left to negotiate–even though landowners have had two years to do so. As a last resort, Rover is using eminent domain procedures in court to (yes) force their way onto property and get it ready for construction this summer. Perhaps a little-known fact: Rover also runs through portions of Washington County, PA. The Pittsburgh Post-Gazette found a couple of landowners with sad stories about the big bully Rover using eminent domain against them. Look, we’re not unsympathetic. If we owned a farm (as one of the interviewees does) and they want to run the pipeline through a prized hay field, we’d likely be opposed too. However, the story highlights the fact that others in similar circumstances worked hard early on with Rover to reroute the pipeline through their property–and were successful. The moral of the story is this: the pipeline WILL come, your best chance of influencing WHERE it comes happens EARLY in the process…
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    PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time

    Third time’s the charm? The Pennsylvania General Assembly convenes for two-year sessions. Almost six years ago during the 2013-2014 session of the General Assembly, PA Rep. Garth Everett introduced “minimum royalty” legislation that would guarantee PA landowners would get minimum royalty payments of 12.5%–regardless of any kind of post-production expenses. It was called House Bill (HB) 1684 and it failed to even come to the floor for a vote (see PA Royalty Bill 1684 Off the Agenda, Likely for Rest of 2014). Everett re-introduced it during the 2015-2016 session, renamed HB 1391. Once again, near the end of the term, it failed to get a full vote (see PA Royalty Bill Dead for Another Year – Supporters Vow to Fight On). Everett is not giving up. Last Friday he re-introduced the bill for the third time, this time called HB 557. Does it stand a chance?…
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    Last Minute Attacks Fail to Stop Mariner East 2 Pipeline Progress

    We appear to be in the final death throes of radical environmental efforts to block the construction of Mariner East 2–a $2.5 billion, 306-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. Last week the Pennsylvania Dept. of Environmental Protection (DEP) gave its final approval for the project (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). It didn’t take long for a coordinated attack from the the enviro left–THE Delaware Riverkeeper, the Philadelphia-based Clean Air Council and the Mountain Watershed Association (see Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe). On Thursday they asked the PA Environmental Hearing Board to block construction until they can figure out a new way to try and stop the project, claiming “irreparable harm” will happen if construction proceeds. On Friday a judge refused their request. They asked the judge to reconsider a few hours later, after they had manufactured new “evidence” for the judge. Meanwhile, supervisors in West Goshen (a Philly suburb) filed a complaint against Mariner East 1 and 2 with the PA Public Utility Commission, in a apparent effort to stop any new construction there. Try as they might to stop it, this pipeline is about to get built…
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    Small Group Begins Sleepover to Block Atlantic Sunrise Pipeline

    As we reported last week, a small group of anti-fossil fuelers were planning on grabbing their sleeping bags and heading to Amish country for a sleepover at the Magic Tree House (see Antis Plan a Weekend Campout to Protest Atlantic Sunrise Pipeline). Beginning Friday night, a group of about 50 launched their “encampment,” calling it The Stand. Supposedly this is a “peaceful” protest to prevent Williams from digging a trench across the property where the flimsy tree house shack is built. Organizers claim they don’t want any violence, like that in North Dakota (similar “peaceful” protest). They also claim someone would be present at the location from now until they are forcibly removed by law enforcement, in an illegal attempt to block construction of the pipeline. It’s a good thing the ~2.4 million miles of underground pipelines in the U.S. got in the ground before leftist enviro-nutters decided to make an issue out of it…
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    Spectra Energy Still Committed to Building New England Pipeline

    On Friday midstream (pipeline) company Spectra Energy issued its fourth quarter and full year 2016 update. At the end of update, Spectra provides details on projects it will complete in 2017, those in development to be completed in 2018, and the final category of projects “in development.” It is that last one that caught our eye, because there is one project listed: Access Northeast, the pipeline project Spectra wants to build to bring more Marcellus/Utica shale gas to New England. Our quick take of what Spectra said: When the New England states get their heads out of their…lobster brisket…and pass laws and regulations getting on the same page, we’ll be here ready to build the project and make it happen. That is, Spectra has not given up on Access Northeast–and neither should we. Here’s the expansion projects update section, which includes not only the update for Access Northeast, but details for other projects located in the Marcellus/Utica region…
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    NJ Sierra Club Tries to Pedal More Lies About PennEast Pipeline

    PennEast Pipeline, to their credit, is done being silent when it comes to the lies and distortions of groups like the radical (and lying) New Jersey Sierra Club. Recently PennEast called out the Sierra Club (and THE Delaware Riverkeeper) for their lying ways, without using the word “liar” (see PennEast Pipeline Calls THE Dela. Riverkeeper & Sierra Club Liars). Now the word liar IS used, with respect to the Sierra Club’s latest 100% false claims that PennEast threatens drinking water and is somehow comparable to the Oroville Dam debacle in California. It is a scurrilous accusation, being strongly refuted by PennEast…
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