Industrywide Issues

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    Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe

    Mariner East 2 map – click for larger version

    Well that didn’t take long. On Monday the Pennsylvania Dept. of Environmental Protection (DEP) issued their final water and erosion permits to Sunoco Logistics to build the 306-mile Mariner East 2 natural gas liquids (NGL) pipeline (see Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline). Even though anti-drilling radicals, like Maya van Rossum (THE Delaware Riverkeeper), the Philadelphia-based Clean Air Council and the Mountain Watershed Association have repeatedly sued (and lost) to stop the project, they sued again on Monday following the DEP announcement. The three groups filed an appeal with the Pennsylvania Environmental Hearing Board, a special type of court set up to hear appeals of decisions by the DEP. In an interview, Miss Maya lashed out at her own party, blaming Democrat Gov. Tom Wolf for supporting the pipeline project. She is, of course, on the leftmost fringe of the environmental movement–no pipeline anywhere for any reason is acceptable because pipelines flow evil fossil fuels. But you can’t just file a lawsuit to stop a pipeline because you have batty beliefs about them. You need an excuse, something a liberal judge can use as justification to grant your wish. In the case of Miss Maya & friends, they claim Mariner East 2 provided an “incomplete and deficient” application, and that by granting the permits, the DEP is covering up and/or ignoring the deficient application…
    Read More “Maya & Friends Sue (Once Again) to Stop Mariner East 2 Pipe”

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    Calif. Microturbine Company Sells More Units in the Marcellus

    A California company that manufactures small electric-generating plants that run on natural gas, has just sold three more of their “microturbines” to midstreamers in the Marcellus Shale play. This is not the first time Capstone Turbine Corporation has sold their devices to pipeline companies in the Marcellus (see Calif. Microturbine Company Lands More Marcellus/Utica Customers). Capstone’s technology uses natural gas coming from the pipeline itself to power the generator that produces electricity used by compressor stations. That way, long and expensive-to-install electric lines don’t need to be run to compressor stations, which are mostly sited in rural locations, away from residential areas. It is a win/win for everyone! Here’s the exciting news that Capstone has just sold three more microturbines, with a combined capacity to produce 2.8 megawatts of electricity, to an unnamed midstream company in the Marcellus…
    Read More “Calif. Microturbine Company Sells More Units in the Marcellus”

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    Anti-Fossil Fuel Hatred Metastasizes in Tompkins County, NY

    Anti-pipeline insanity has metastasized in Tompkins County, NY (i.e. Ithaca). Members of the Tompkins County Energy and Economic Development Task Force object to building seven miles of 10-inch natural gas pipeline in the Lansing area (suburb of Ithaca)–because the pipeline flows a fossil fuel. They have objected to the point that the local utility company wanting to build it, NYSEG (New York State Electric & Gas), has floated an alternative plan: Build a compressor station for existing customers, and no new customers are allowed to receive natgas service. Ever. Period. Talk about nuts! The tinfoil hat folks on the Task Force instead want NYSEG (or someone else) to invest in so-called alternative energy projects to meet the energy demand for new customers. That is, the Task Force is prejudiced against the type of energy residents prefer to use–to the point of forcing another choice on them. Only in the Communist Paradise of Ithaca…
    Read More “Anti-Fossil Fuel Hatred Metastasizes in Tompkins County, NY”

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    Important Shell Ethane Cracker Webinar on Feb 27

    We want to alert you to an upcoming webinar that will be worth your time. On Feb. 27 at 2 pm, NGI (Natural Gas Intelligence) will host a webinar titled, “Cracking the Ethane Code in Appalachia,” all about the Shell ethane cracker. NGI’s ace reporter Jamison Cocklin (MDN editor Jim Willis knows Jamison and has the highest regard for his reporting and writing) will moderate. On the call will be an all-star cast: Don Rush, VP of CONSOL Energy; Jim Cooper, American Fuel & Petrochemical Manufacturers; Denise Brinley, PA Department of Community and Economic Development; and Danielle Sandusky, Level 2 Energy. The webinar will help answer questions about the size and scope of the cracker, whether (and how) the cracker will impact drilling decisions, what about competition from other crackers along the Gulf Coast, and more. Below is more information, and a link to register for this FREE webinar…
    Read More “Important Shell Ethane Cracker Webinar on Feb 27”

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    Editorial: No University of Pittsburgh, Period

    We have a concern about the kind of education being offered by the very high-priced University of Pittsburgh. What are the professors actually teaching to those young skulls full of mush? Judging by the kinds of editorials coming from the student-run Pitt News newspaper, we’d have a big concern about the education (or rather, miseducation) coming from Pitt, especially if we were parents of students at Pitt. In today’s editorial, titled “No Mariner East II pipeline, period.”, the writers actually, fantastically say this: “But as our levels of dependency on oil combined with estimates of what’s left in the earth come to a head in the next few decades, investing in infrastructure to increase our fossil fuel consumption is both unwise and irresponsible.” Are these young people just really stupid? Or have they been miseducated? Do they not know that the same flawed, “We’re going to run out of fossil fuels any decade now” thinking has been around for the past 40+ years? And that we have MORE supplies of fossil fuels today than we thought possible just a decade ago? The entire editorial is a rail against Mariner East 2, and against all pipelines, because they flow fossil fuels. This is nuttery. And frankly, it’s not acceptable from so-called “educated” students at a reputable university. We think an investigation should be launched into how this sort of obviously flawed thinking can happen at a place like Pitt…
    Read More “Editorial: No University of Pittsburgh, Period”

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    Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline

    Mariner East 2 Pipeline – click for larger version

    Game, set and match. Finally, after five circuses, er, a, public hearings, and 29,000 form letter comments, the Pennsylvania Dept. of Environmental Protection (DEP) has issued the final Chp. 105 (Water Obstruction and Encroachment) and Chp. 102 (Erosion and Sediment Control) permits for the Mariner East 2 pipeline project. PA has cleared the project to begin construction–there are no more permits required from PA. However, before the bulldozers start, there is one remaining hurdle: permission from the U.S. Army Corps of Engineers (which under President Trump, is a foregone conclusion). Mariner East 2, as a reminder, is 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. It will flow mostly ethane, but also propane and butane. There have been numerous legal battles and roadblocks thrown up by some of the townships along the route–but that’s now behind us. Oh, there’s still a few troublemakers (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?), but their troublemaking will go nowhere. This has been a long time coming, and a cause to celebrate…
    Read More “Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline”

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    PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP

    PennEast Pipeline proposed route – click for larger version

    PennEast Pipeline is reporting a major milestone in getting their project approved: the Pennsylvania Dept. of Environmental Protection last Friday awarded the pipeline a 401 Federal Clean Water Act “Water Quality Certification.” PennEast is a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. Although the PA DEP’s water certificate is certainly good news, it comes not long after a continuing cloud over the project–yet another delay by the Federal Energy Regulatory Commission (see FERC Delays PennEast Pipeline Final Review – Again). FERC was supposed to issue a final environmental assessment for PennEast last August. Then it got changed to December. Then it got changed to this month, February. There will almost certainly be a fourth delay as there are now not enough FERC Commissioners to vote on the assessment (since Norman Bay quit in a huff, see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). However, for now, let’s revel in the current good news for the project…
    Read More “PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP”

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    EIA Feb Drilling Rpt: Gas Prod. to Hit New Record High in March

    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. For the past four reports, estimating production for November, December, January, and February, Marcellus natgas has increased. The trend continues in this latest report, which forecasts production for the coming month of March. In fact, EIA says natgas production for six of the seven major shale plays will go up–by a lot. In fact, if the numbers prove to be true, the combined natural gas production for the seven major plays will hit a new record high of 49.1 billion cubic feet per day (Bcf/d) in March. Two months ago the EIA predicted natgas production in the Marcellus would zoom up by 160 million cubic feet per day (MMcf/d). Last month EIA predicted Marcellus production would go up another huge 188 MMcf/d. This month, it’s even higher: March production will go up 192 MMcf/d! The other big story (for us) is just how much natgas production is rising in the Texas Permian Basin–up another 129 MMcf/d. But wait, the Permian is an oil play, right? Correct. However, more than just oil comes out of the ground–plenty of “associated” natural gas also comes out, along with the oil. The Permian is seeing white hot levels of new drilling. The more oil drilling, the more associated natural gas that comes along with it. Below we have the latest report, long with some analysis…
    Read More “EIA Feb Drilling Rpt: Gas Prod. to Hit New Record High in March”

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    PA Lawmakers Push Back Against DEP’s Draft Methane Regs

    In December the Pennsylvania Dept. of Environmental Protection (DEP) unveiled new regulations to clamp down on methane emissions and other other air pollution that allegedly comes from shale drilling sites (see PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites). The onerous new regulations, not in effect yet, were originally prompted by bullying from the federal Environmental Protection Agency. Even though EPA pressure is likely to disappear under President Trump, PA Gov. Wolf still intends to push forward with these regulations. After some final tweaks, the DEP released draft versions of the new permits (i.e. regulations) last week, opening them up for public comment over the next 45 days. However, chairman of the Pennsylvania House State Government Committee, Rep. Daryl Metcalfe, sent a letter to the DEP (full copy below) to let the DEP know they have overstepped their bounds in issuing the draft permits. Metcalfe accuses the DEP of “lack of transparency, accountability and judicious use of regulatory authority.” In other words, cease and desist. Another PA legislator, Sen. Guy Reschenthaler, introduced a bill in January that would prohibit PA from adopting regulations that are stricter than federal standards. It seems the DEP has a fight on its hands–from the PA legislature…
    Read More “PA Lawmakers Push Back Against DEP’s Draft Methane Regs”

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    10% of PA Farms Received Avg $154K in Lease/Royalties in 2014

    Some farms not only produce products like milk, meat, eggs and/or crops–some farms produce energy. Would it surprise you to learn that in 2014 (the most recent year with stats available), energy companies paid farmers a staggering $2.9 billion for the energy extracted from private farms? The U.S. Dept. of Agriculture posted a brief blurb from their Amber Waves magazine yesterday, recounting stats from a report released last November. The report, “Trends in U.S. Agriculture’s Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass” (full copy below) points out it’s not just oil and gas extraction that farmers receive income from. Some farmers lease their land for solar and wind generation. Some biomass. However, it was one particular chart and stat that caught our attention: About 9.6% of Pennsylvania farms received energy income in 2014. The average amount received, per farm? $157,000! Almost all of that revenue came from the Marcellus Shale…
    Read More “10% of PA Farms Received Avg $154K in Lease/Royalties in 2014”

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    WVU Program Converts Stranded Shale Gas into “Valuable Products”

    West Virginia University (WVU) has joined a national effort to “turn natural gas into valuable products and do it at the well.” There are many locations in the Marcellus (and Utica) where pipelines don’t yet connect. Wells drilled but not hooked up to production. WVU has joined the newest branch of the U.S. Department of Energy’s National Network of Manufacturing Institutes. Called Rapid Advancement in Process Intensification Deployment institute, or RAPID, the institute “will focus on using advanced manufacturing to develop breakthrough technologies to boost the productivity and efficiency of some of industrial processes by 20 percent in the next five years.” That is, they plan to design modular reactors–think of them as teeny tiny crackers–that can be carted around well site to well site, converting methane, ethane and other hydrocarbons into new chemical products. It’s a very exciting concept. WV in particular has a lot of hilly terrain that makes installing pipelines difficult. This is a potential solution to that problem…
    Read More “WVU Program Converts Stranded Shale Gas into “Valuable Products””

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    LNG Co Tellurian Merges With, Takes Over Magellan Petroleum

    As we pointed out to you last December, evil corporate raider Carl Icahn (invests in companies so he can fire a bunch of people, boost the stock and pocket the profit) had fired Cheniere Energy CEO Charif Souki (see Evil Corporate Raider Carl Icahn Claims Another CEO Scalp). Souki hasn’t let it slow him down. He started a new LNG export company, Tellurian, to compete with his old company (see Revenge: Fired Cheniere CEO Starts Competing LNG Company). We kind of had (past tense) a soft spot for Souki, getting tossed from the company he started. But then we read comments he made about Donald Trump, saying if Trump won, he would reconsider his American citizenship (see Will Charif Souki Renounce His American Citizenship?). We’re still waiting for Souki to move back to Egypt. Since forming Tellurian, he’s moved fast to finance the company and its coming Driftwood LNG export facility, essentially by selling off large chunks of it, $25 million from GE Oil & Gas (see GE Oil & Gas Invests $25 Million in LNG Co Tellurian), and $207 million from Total (see French Supermajor Total Buys 23% Stake in Tellurian LNG). Until now, Tellurian has been a private company, no publicly traded shares of stock. That changed last Friday when Tellurian merged with/took over Magellan Petroleum Corporation and began trading stock in the newly merged company on the NASDAQ stock exchange…
    Read More “LNG Co Tellurian Merges With, Takes Over Magellan Petroleum”

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    More on WV’s Push for “Joint Development” Instead of Forced Pooling

    On Friday MDN ran a story of keen interest to both mineral rights owners and drillers in West Virginia–about an effort pushing new legislation this year in lieu of forced pooling, something called “co-tenancy” and “joint development” (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). Co-tenancy is pretty easy to understand: if there are multiple owners for the mineral rights under a property (something that happens fairly regularly in WV), you would only need a simple majority of those owners to approve a drilling lease. Currently, if one person with a teeny tiny share objects, it stops the process. But joint development was something of a mystery for us. We thought it meant if adjoining properties were signed with different drillers, they could more easily be combined for horizontal drilling. Although that may be the case, we were wrong about the the main intent of the new bill. A sharp MDN subscriber (someone from the industry) emailed to explain what’s really going on with this new bill. We also heard from a rights owner who would be affected. And from the West Virginia Oil & Natural Gas Association (WVONGA). We now have a better handle on joint development…
    Read More “More on WV’s Push for “Joint Development” Instead of Forced Pooling”

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    PA Landowner Wins Case Against Chesapeake re Royalty Deductions

    Paul Sidorek, an accountant representing some 60 northeastern Pennsylvania landowners who receive royalty income from drilling, is also a landowner himself. In 2009 Sidorek leased 145 acres, a lease that was eventually sold to Chesapeake Energy. Because of the troubles encountered by others, Sidorek wrote into his lease a 20% royalty and made sure the lease explicitly stated that no expenses could be deducted from the sale of the gas produced on his property. That is, NO post-production expenses could be deducted. And yet, Chesapeake disregarded the lease and deducted as much as 30 percent from his royalties, attributing it to “gathering” and “third party” expenses, an amount that adds up to some $40,000 a year (see Chesapeake Short-Changes PA Landowner on Royalty Checks). Sidorek fought Chesapeake in court, and ended up in arbitration. The arbitrator has just ruled–in Sidorek’s favor. The good news is that a PA landowner has gotten some justice against Chesapeake’s sleazy practice. The bad news is that it’s not a precedent and can’t be used in other court cases…
    Read More “PA Landowner Wins Case Against Chesapeake re Royalty Deductions”

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    WVDEP Loosens Permits for Compressors re Noise & Bright Lights

    The colorful new Governor of West Virginia, Jim Justice, is wasting no time in showing his support and appreciation to the natural gas industry. During Justice’s State of the State address last week, he ordered his new head of the WV Dept. of Environmental Protection, Austin Caperton, to stop saying “no” to businesses that show up with requests (including the drilling industry). During a rambling address, Justice had this to say: “Now, I underline — underline, underline, underline — nobody loves the outdoors as much as me. Nobody loves water as much as me. We’re not going to break the law. We’re got going to do anything to damage the environment to the very best of our abilities. Or our waters. But we are not going to just say no.” And we have perhaps the first instance of that philosophy in action. The previous Gov. Earl Ray Tomblin Administration had enacted certain restrictions in WV permits for compressor stations–establishing noise and light restrictions to protect nearby residents. At the request of the West Virginia Oil and Natural Gas Association (WVONGA), Caperton removed those restrictions…
    Read More “WVDEP Loosens Permits for Compressors re Noise & Bright Lights”

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    PennEast Pipeline Calls THE Dela. Riverkeeper & Sierra Club Liars

    Click for larger version

    It’s about time the gloves came off and we started hitting back–hard. Kudos to PennEast for calling a spade a spade. In an announcement released Friday, PennEast Pipeline did everything but use the word “liar” in reference to the lies and propaganda being spread by Maya van Rossum (THE Delaware Riverkeeper) and her compatriots at the New Jersey Sierra Club. But we can tell you, the sentiment is there, loud and clear. PennEast is taking the gloves off and fighting back against outright lies coming from anti-drilling zealots, calling their screeds “false information” and “misinformation” and “flat-out false” with respect to a lie being spread about an alternate route for PennEast route through central Bucks County…
    Read More “PennEast Pipeline Calls THE Dela. Riverkeeper & Sierra Club Liars”