Industrywide Issues

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    Miracle! NY DEC Approves Dominion’s New Compressor Stations

    The anti-fossil fuel nutters in New York have finally lost a major battle they’ve waged against the shale industry for the past 5+ years. In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. In March 2015 MDN friend Andy Leahy wrote about the pitched battle antis waged against the project (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). However, with a ban on fracking in NY, and with projects like the FERC-approved Constitution Pipeline being blocked by the politicized NY Dept. of Environmental Conservation (DEC), it seemed like no pipeline projects or anything to do with shale energy would ever get approved–until we dump Cuomo. Then a miracle happened! At the end of 2016, the politicized DEC finally approved Dominion’s New Market Project and the construction of the compressor stations. MDN owes a huge debt of gratitude to Andy Leahy who unearthed what the DEC clearly wanted to keep quiet. Andy found a reference to the New Market Project approval in the left-leaning Politico and went nosing around and found documentation for the official DEC approvals (below)…
    Read More “Miracle! NY DEC Approves Dominion’s New Compressor Stations”

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    Lancaster County Antis Ramp Up for “Nonviolent” Pipeline Protests

    North Dakota Access Pipeline’s “nonviolent” protesters – credit: LA Times

    Last week MDN told you about the nutters from the radical group Lancaster Against Pipelines who built a second magic tree house in the path of the proposed Atlantic Sunrise Pipeline (see PA Antis Build 2nd Magic Tree House to Stop Atlantic Sunrise Pipe). As we pointed out then (and on previous occasions) this group is now aligning itself with, and taking its cues from, outside/paid protesters who engaged in criminal acts in North Dakota at the site of the Dakota Access Pipeline project (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). On Sunday, Lancaster Against Pipelines held yet another protest meeting–at the site of the new/second magic tree house. And guess who was there? “Organizers from at least three other states were in attendance to recruit and train people on nonviolent direct action. Some of them had taken part in the monthslong protest against an oil pipeline in North Dakota with the Standing Rock Sioux tribe.” Is that the same Dakota Access “protest” where they were firing bullets at police and throwing rocks at law enforcement? Tell us again about this so-called “nonviolent” protest you’re planning in Lancaster…
    Read More “Lancaster County Antis Ramp Up for “Nonviolent” Pipeline Protests”

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    Rice Energy Sues West Pike Run Twp re Compressor Station Approval

    Tired of having their application to expand a pipeline compressor station blocked, Rice Energy has sued West Pike Run Township in Washington County, PA. In the lawsuit, Rice says that the town had 90 days (under law) to render a decision on the request and did not do so. Eventually the town told Rice “no” to expanding an existing compressor station. The lawsuit asks the court to force the town to approve the application forthwith…
    Read More “Rice Energy Sues West Pike Run Twp re Compressor Station Approval”

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    Penn Township Allows Drilling to Avoid $300M Lawsuit by Apex

    This news is a bit dated, from last December, but important nonetheless. Under threat of a $300 million lawsuit, Penn Township (Westmoreland County, PA) voted to allow Apex Energy to build two Marcellus well pads, and arranged for more hearings on four more well pads. In April 2016 Penn Township blocked permits for Apex well pads (see Penn Twp Blocks Apex Energy Well Pad Request, What Next?). In May it happened again (see Penn Twp Commissioners Block Apex Shale Well Request in 3-2 Vote). In June the town began to ramp up talk of uber-restrictions on drilling, via zoning ordinances (see Penn Township Considering More Restrictions on Drilling). And in August, the town held a hearing on a proposed new Marcellus-killing ordinance (see Penn Twp Hearing Discusses Marcellus-Killing Ordinance). Meanwhile, Apex was losing $70,000 PER DAY by not drilling on land for which they held valid, legal leases, and for wells that were duly permitted by the PA Dept. of Environmental Protection. So Apex launched a lawsuit to make the town pay for its harmful actions. By December, the town board was singing a different tune (about time)…
    Read More “Penn Township Allows Drilling to Avoid $300M Lawsuit by Apex”

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    Independent Report Says Mariner East 2 Pipe Safe for PA Towns

    One of the antis’ favorite tactics in opposing the Mariner East 2 pipeline is to claim it’s unsafe. It’s a bomb waiting to go off. Mariner East 2, as a reminder, is a $2.5 billion, 350-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. One town near Philadelphia where the pipeline is slated to run is West Goshen Township (Chester County). The leaders of the town wanted an honest, independent assessment of the pipeline and its potential danger to residents–so they hired the independent consulting firm Accufacts to study the safety of the project. The report is in (full copy below) and shows not only does Mariner East 2 meet, but in fact exceeds federal minimum safety requirements. There goes another anti argument, disappearing into the atmosphere like burned carbon dioxide…
    Read More “Independent Report Says Mariner East 2 Pipe Safe for PA Towns”

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    EIA: Natural Gas Prices in 2016 Lowest in Nearly 20 Years

    How low can you go? Natural gas spot prices in 2016 averaged $2.49 per thousand cubic feet (Mcf), or more commonly per million British thermal units (MMBtu) at the national benchmark Henry Hub. That is the lowest annual average price for natgas since 1999. The monthly average price fell below $2.00/Mcf from February through May, but later increased, ending the year at an average of $3.58/Mcf in December. Marcellus/Utica drillers would LOVE to see prices like $2.49 or $3.58. Prices in the northeast, because of lack of takeaway pipelines, sometimes sank below $1/Mcf at certain trading points…
    Read More “EIA: Natural Gas Prices in 2016 Lowest in Nearly 20 Years”

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    Ohio EPA Issues Wastewater Discharge Permit for PTT Ethane Cracker

    We have some progress and movement to report about PTT Global’s proposed $6 billion ethane cracker project coming to Belmont County, OH. The rumor is that PTT will announce a final investment decision (FID) in March–just two short months away. We wait with eager anticipation! However, in the meantime, the project appears to be proceeding full speed ahead. The latest evidence of that comes from a recent permit issued for the project by the Ohio Environmental Protection Agency (EPA). The permit allows the cracker plant to discharge wastewater (which is far different from drilling wastewater) into the Ohio River. The EPA notes, in granting the permit, that although the discharge may “result in changes from current water quality conditions” the discharge “cannot violate Ohio’s water quality standards that protect human health and the environment.” Next up is an air permit from the Ohio EPA, which the agency is currently working on. Here’s the deets on the wastewater permit just issued…
    Read More “Ohio EPA Issues Wastewater Discharge Permit for PTT Ethane Cracker”

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    IECA Comes Out Swinging: Urges FERC to Approve 10 M-U Pipes NOW

    Industrial Energy Consumers of America (IECA) is the only national cross industry trade association dedicated to a broad array of energy/environment related issues. IECA is a 501(C)(6) nonprofit, member-led organization created to promote the interests of manufacturing companies for which the availability, use and cost of energy, power or feedstock play a significant role in their ability to compete in domestic and world markets. The IECA is using its considerable heft and going to bat for ten pipeline projects critical to manufacturers–projects that move Marcellus/Utica gas out of the northeast to other parts of the country. IECA’s “aggressive lobbying” is chiding FERC for moving too slowly in approving NEXUS Pipeline (DTE Energy & Spectra Energy), Mountaineer Xpress Pipeline (Columbia Gas Transmission), Leach Xpress Project (Columbia Gas Transmission), Eastern System Upgrade (Millennium Pipeline), Atlantic Coast Pipeline (Dominion), Atlantic Bridge Pipeline (Spectra Energy), Mountain Valley Pipeline (EQT & NextEra Energy), Susquehanna West Project (Kinder Morgan), Transco to Charleston Pipeline (Dominion), and VEPCO – Warren County Project (Columbia Gas Transmission). In each filing with FERC, the IECA asks FERC to ignore the shrill voices of “keep it in the ground” nincompoops. IECA says, “Manufacturing companies do not have an alternative for natural gas. Major manufacturing production processes and equipment are designed to specifically use natural gas. Nothing else can be substituted for natural gas. We cannot operate manufacturing facilities on electricity, especially solar or wind power. Coal and oil are also not an alternative for a variety of reasons, including EPA air regulations that limit their use.” Here is a brief description for each project, along with the IECA brief filed with FERC for each of those six projects…
    Read More “IECA Comes Out Swinging: Urges FERC to Approve 10 M-U Pipes NOW”

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    OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation”

    As we have pointed out in past articles, the electricity industry is a complicated industry, with some some power producers operating as “regulated” and some operating as “unregulated.” Regulated power producers have their rates, and rate of profit, set by government regulators–which limits profits but also guarantees profits. Unregulated power producers, on the other hand, do not have the safety net of the government forcing ratepayers to pony up–they operate in the free market, taking all of the risks–and reaping the rewards if those risks prove worthwhile. Many (most?) of the new natural gas-fired electric plants getting built, like those we have focused on in Ohio over the past several days (see List of 10 Utica-Powered Electric Plant Projects Coming to Ohio), are of the unregulated kind. Three power companies in Ohio that are regulated want to keep their monopoly on power and shut out these impertinent upstarts–by calling for re-regulation of the power industry. So-called re-regulation would kill proposed new natgas power plants and keep Ohioans locked into higher prices using existing (and in some cases crumbling) plants to generate electricity. Let’s name names for the sleazy companies trying to pull a fast one…
    Read More “OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation””

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    PA Antis Build 2nd Magic Tree House to Stop Atlantic Sunrise Pipe

    Inspired by the criminal actions of eco-terrorists in North Dakota (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?), anti-pipeline zealots in Lancaster County, PA figured they would give some of the tactics from the Dakotas a try here. So last October they constructed a shed on stilts along the proposed path of the forthcoming Atlantic Sunrise Pipeline (see Antis Build Magic Tree House to Block Atlantic Sunrise Pipe). The shed on stilts looks like a big tree house (without the tree), which makes sense as the protesters are the equivalent of seven year-old, petulant, spoiled rotten children. Why not give themselves a magic tree house to hang out in and talk about the glory days of protesting Vietnam…er…ah…pipelines? The nutters have a Holy Cause–stop the use of all carbon-releasing fossil fuels. So, if one magic tree house was good, two would be even better! The nuts have done it again, building a second shed on stilts/tree house in the path of the pipeline. The nutters admit it will take about 15 minutes to rip them down, when the time comes. What they really hope is that thousands of people will swarm to the location of the tree houses and recreate the lawlessness of North Dakota here…
    Read More “PA Antis Build 2nd Magic Tree House to Stop Atlantic Sunrise Pipe”

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    Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet

    Rabidly anti-drilling organizations like the Philadelphia-based Clean Air Council (CAC) have been using the deep pockets of their contributors to stir up dissent against Sunoco’s Mariner East 2 NGL pipeline, particularly in towns in the Philly orbit (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?). CAC has towns like Middletown (Delaware County) so agitated, Middletown’s town council foolishly voted to allocate $100,000 out of $1.8 million the town received for leasing rights-of-way for the pipeline to assess risks and create an emergency response plan for the pipeline. Sunoco is politely telling Middletown–you’re flushing 100 grand down the toilet. Federal guidelines already provide most if not all of the information (and planning) required to protect the good citizens of Middletown. So why is the town council throwing good money away?…
    Read More “Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet”

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    Proposed VA Law Would Protect Frack Chemical Trade Secrets

    We have to chuckle. It was just two months ago, in November 2016, that Virginia Gov. Terry McAuliffe approved changes to environmental regulations that requires “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning” (see Virginia Adopts New Frack Chemical Regs – Fracking to Begin?). In other words, drillers would have to disclose all fracking chemicals. While leftie Big Green groups love the new rules, the drilling industry set about to ensure trade secrets (exact combinations of chemicals) can’t be discovered by using Freedom of Information Act laws. Two new bills have already been introduced in the Virginia legislature this year–House Bill (HB) 1678 HB 1679 (copies below)–that will ensure trade secrets are kept safe. Big Green groups like the Southern Environmental Law Center are having a cow, claiming death and destruction await if the bills are passed…
    Read More “Proposed VA Law Would Protect Frack Chemical Trade Secrets”

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    What Do Kitty Litter and Shale Drilling Have in Common?

    GN Shale Shaker – Mini Mud Recycling System

    This is kind of an offbeat story for a Friday. What do kitty litter and fracking have in common? It’s not a trick question! They both use something called bentonite. Over 90% of all bentonite mined is mined in the U.S. Some half of all bentonite worldwide (found in volcanic ash) comes from one state: Wyoming. Bentonite, which is nontoxic, is called the mineral of 1,000 uses: “It clarifies wine and other alcoholic beverages, forms an impervious liner to keep landfills from leaking, removes ink during paper recycling, and goes into a slew of homeopathic remedies.” However, the two biggest uses for bentonite are (yep) kitty litter and drilling mud used to drill conventional and unconventional (shale) oil and gas wells. Bentonite keeps the drill bit cool and carries cuttings (dirt and rock chips) to the surface. You’ll find big tanks full of the stuff sitting on drill pads. Drilling mud gets recycled on location…
    Read More “What Do Kitty Litter and Shale Drilling Have in Common?”

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    Witch Hunt: Leading Climate Scientist Resigns from Georgia Tech

    Regardless of what you think about so-called man-made global warming, you would think that scientists should be allowed to express their views on the topic without being hunted down and burned at the stake like a witch, reputationally speaking. Yet if a climate scientist dares to express misgivings about the actual data behind global warming, that is exactly what happens. Dr. Judith Curry, a highly respected climate scientist, recently resigned her tenured position at Georgia Tech–because of climate witch hunters. Dr. Curry started out as a man-made global warming true believer, but was shocked at the “Climategate” emails that show researchers with the Climatic Research Unit (CRU) at the University of East Anglia were intentionally making up the numbers in an effort to prove their theories. False data. Lies. Distortions. Dr. Curry investigated and questioned climate orthodoxy, and for that, she has been hounded out of Georgia Tech. What is wrong with this picture? When did science become politics? When did simply asking tough questions become the basis for destroying someone’s reputation?…
    Read More “Witch Hunt: Leading Climate Scientist Resigns from Georgia Tech”

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    Potter Twp Inches Closer to Approving Permits for Shell Cracker

    In December the Potter Township Board of Supervisors convened a public hearing on the proposed Shell ethane cracker plant–to be built in Potter Twp–that ended up going on for 10 hours (see Potter Twp Declines to Approve Permits for Shell Cracker, For Now). The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing the following night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors were still not ready to approve the permits and instead asked for more paperwork to be filed–by both Shell and the radical, anti-fossil fuel Big Green group Clean Air Council (from Philadelphia). The supervisors are certainly no rubber stamp for the cracker project. They are working hard to ensure area residents are protected when (not if) it gets built. But that’s not good enough for radical, anti-fossil fuel nutters who (irrationally) want nothing to do with natural gas. The supervisors held another meeting last night and a small group of antis attended with preprinted signs. One sign said “Deficient = DENY.” The other said, “Disaster Decision.” The first sign was flashed as supervisors tried to conduct their business. When the supervisors finally held a vote to ask the town attorney to draw up an official document to approve the cracker, the antis got mouthy (as they always do) and flashed the other sign. Amidst the shouting by antis, one supervisor asked for order in the room. One horse’s rear-end shouted, “Maybe the public wants disorder.” Here’s how it went last night…
    Read More “Potter Twp Inches Closer to Approving Permits for Shell Cracker”

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    EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine

    In October 2014 the Pennsylvania Dept. of Environmental Protection (DEP) fined PA driller EQT $4.53 million for a leaky wastewater impoundment in Tioga County, PA (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). While EQT did not say there wasn’t a problem with leaks at the site, they did say the way the DEP calculated the fine is unreasonable and arbitrary. In fact, EQT says the DEP levied the fine and took EQT to court because a few weeks prior EQT had sued the DEP over a different matter. EQT appealed the fine and the case to PA Supreme Court and a year later the high court handed EQT a “procedural victory” by saying EQT has a point about the manner in which the DEP is calculating the fine (see PA Supreme Court Gives EQT “Procedural Victory” in $4.5M Fine Case). The Supreme Court sent the case back to a lower court, PA Commonwealth Court, for follow up work. The work is done and EQT has won. A three-judge panel ruled that the method the DEP currently uses to assess fines–by how many days pollution lingers, instead of by how many days the initial release of pollution lasted–is not legal nor common sense. The judges said such a method in fining, “would result in potentially limitless continuing violations.” Under the old way of calculating fines, the DEP was considering upping the fine on EQT to an insane $157 million. Calculating it under the new way will mean a fine of around $120,000. This is a major victory for EQT and a reigning in of egregiously overzealous state regulators…
    Read More “EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine”