Industrywide Issues

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    PA DEP Asks Supreme Court to Overturn Stay on New Regs

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    On Oct. 8, after five years in the making, Pennsylvania adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf. Wolf’s people mangled the regulations under the Dept. of Environmental Protection (DEP) Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). The judge agreed to temporarily block some of the items in the MSC list (see PA Judge Temporarily Blocks Some DEP Chapter 78a Drilling Regs). Yesterday the DEP escalated the case by asking the PA Supreme Court to undo the block on those regulations by the lower Commonwealth Court…
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    Vendors & Workers: Sign Up to Help Build Atlantic Coast Pipeline

    Calling all vendors (i.e. supply chain companies) and workers who want a piece of the action in building the Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Dominion is currently holding in-person “construction expos,” as well as hosting an online form for those where those with an interest in selling to or working for the project can register that interest. Yesterday Dominion held a construction expo in Bridgeport, WV. Today they’re holding one in Elkins, WV. And over the next week or so they will hold more construction expos–across Virginia and even in North Carolina. Dominion is looking for suppliers for things like gravel and concrete, vehicles, construction supplies, welding and more. Here’s the low-down on how you can sign up to help build the Atlantic Coast Pipeline…
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    JobsOhio Picks Up the $17M Cost for Prepping OH Cracker Site

    On Monday MDN reported that the future site for an ethane cracker in Belmont County, OH is now cleared and ready for construction to begin (see OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready). Clearing the site, which once hosted the R.E. Burger coal-fired power plant, was no small task. The power plant site, owned and (until 2011) operated by FirstEnergy cost $14 million for demolition, remediation and general cleaning up. An adjacent site (not owned by FirstEnergy) cost another $3 million to tidy up. All told it took $17 million to clean up the site and get it ready to begin construction. FirstEnergy is reported to have said they were “excited” by the opportunity to spend $14 million to clean it up. Wait, what? They wanted to spend the money? Well actually, no, they didn’t. FirstEnergy spent the money to clean up the site because they have been/are being reimbursed for the cost by JobsOhio. So FirstEnergy (and PTT Global, the company that will build the cracker) doesn’t have to spend a dime to get the site ready to go. What is JobsOhio and where does it get all this money? Glad you asked! JobsOhio is a private, non-profit with a board appointed by Ohio Gov. John Kasich, which gets most of its operating revenue from taxes on liquor sales in Ohio. So raise a glass to the cracker, Ohioans. Your imbibing is helping to build it…
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    New England Gets Small Increase in NatGas Pipeline Capacity

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    For the first time in six years, New England’s natural gas supply coming from pipelines is increasing. Slightly. On November 1, Spectra Energy placed part of the Algonquin Incremental Market (AIM) project into service, following a late-October approval from the Federal Energy Regulatory Commission (FERC). The remainder of the project is expected to be completed in December. Spectra placed another pipeline project, the Salem Lateral, into service on November 1 as well, but it is not expected to be used until June 2017. The AIM project, when it is fully online later this month, will flow an extra 342 million cubic feet per day (MMcf/d) of Marcellus/Utica natural gas to New England. Cool! However, as we pointed out just yesterday, New England continues to balance on a razor’s edge. According to the regional electrical grid operator, ISO New England, given the supplies they now have (and expect to have via AIM), the region “should” (maybe, might, possibly, theoretically) have enough natgas to skate by this winter (see Lack of NatGas Pipelines Casts Doubt on NE Winter Electric Rates). But, if it turns really cold and snowy and stays cold and snowy in New England, all bets are off. Here’s the good news about the added capacity now (or soon will be) flowing to New England…
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    Will Venezuelan NatGas End Up in New England?

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    This is one of those purely speculative types of posts–based on nothing but our own curiosity and reaction of “Huh, that’s odd,” in learning that Venezuela has signed an agreement with the island nation of Trinidad and Tobago to supply the country with natural gas via a 400-mile pipeline (already in existence). The “that’s odd” reaction comes from knowledge that Trinidad and Tobago is, itself, a natural gas producer and exporter. Why would they need to import gas? One of Trinidad’s main customers is, yes, GDF Suez which imports LNG at a facility near Boston–for sale to New England. GDF Suez has been fighting against new pipelines from the Marcellus, based on their own selfish interests, arguing that it’s far better to import LNG than build new pipelines (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). But perhaps this development is not surprising. As we’ve pointed out before, Trinidad’s gas supplies are dwindling and export volumes dropping (see Is New England Heading for Huge NatGas Price Spike this Winter?). It appears Trinidad has a new supplier to keep the LNG exports going. Our question: Will Trinidad simply repackage and resell Venezuelan gas to New England? Our further question: Is it a good plan to depend on natural gas supplies from an antagonistic (i.e. enemy) country like Venezuela? Wouldn’t it make more sense to rely on domestically produced gas from a few hundred miles away?…
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    Bowling Green, OH Votes to Deny NEXUS Pipe Easement for City Land

    unwiseAll seven members of the Bowling Green City Council (Wood County) unwisely voted to reject an offer from Spectra Energy’s NEXUS Pipeline to lease 4 acres of city-owned land for the pipeline. Why unwise? Because the project is close to receiving its final federal approval, which will give it the right to use eminent domain to use the land anyway (see FERC Approves NEXUS Pipeline, Project on Track for 2017). Spectra offered $151,000 for the easement and was willing to follow an existing easement already in place for power lines. When (not if) NEXUS gets built, Bowling Green can expect to receive far less in the way of a lease payment. Even though the fix was in before the vote was taken, one lawless resident–Joe DeMare, a Green Party candidate for U.S. Senate in the most recent election (loser)–wouldn’t shut his yap and had to be escorted out by security. Apparently he thought there should be more public comment (i.e. camera and microphone time for himself) before the vote was taken. Whatever. Big Green antis celebrated the vote. We predict it will be a short-lived celebration…
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    Talen Puts Coal-to-Gas Powergen Conversion on Hold in Mountour, PA

    on holdIn June Talen Energy announced that one of its coal-burning electric generating plants, located in Montour County, PA, will get an upgrade to burn natural gas in addition to burning coal (see Talen Energy Converting Moutour, PA Plant to Burn Coal AND NatGas). The Montour Power Plant went online in 1972/73 and generates 1,504 megawatts of electricity. The $70 million upgrade planned by Talen (requiring a 15-mile pipeline) will continue to produce the same amount of electricity, but will give the plant the option to power it with either natgas or coal, depending on which is cheaper. However, those plans are now on hold. Talen has just announced it will not, for now, move forward with the upgrade. Why? Talen says it wants to evaluate the results of a similar project already completed in York County, PA before moving forward with the project in Montour County…
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    New Head of WVONGA Pushes for Forced Pooling Law

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    Anne Blankenship

    In November the West Virginia Oil & Natural Gas Association (WVONGA) hired Anne C. Blankenship, an attorney with Babst Calland, to serve as executive director (see WVONGA Hires Babst Calland Attorney as Executive Director). As we noted at the time, she has some big shoes to fill following the sudden death of WVONGA’s former director Corky DeMarco (see WVONGA Executive Director Corky DeMarco Dead at 68). Anne becomes the standard-bearer for shale drilling in the Mountain State. She’s not wasting any time. The Charleston Gazette-Mail published an editorial by Anne today, a column in which she introduces herself and lays out her priorities for the coming year. One of those priorities is to push for a forced pooling law. She’s also pushing hard for new pipelines to get built…
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    Lack of NatGas Pipelines Casts Doubt on NE Winter Electric Rates

    iso-new-englandContrary to the assurances of charlatans like Massachusetts Attorney General Maura Healey who tells us new natural gas pipelines are not needed, New England is once again looking down the throat of potential electricity shortages this winter–if we have another winter like that of 2013/2014. ISO New England Inc. (ISONE), the electrical grid operator in the region, issued a statement last week to say they are implementing a 2016-17 Winter Reliability Program to guard against potential electricity shortages because there’s not enough natural gas in the region to power electric plants if much of that gas is also heating homes and businesses on cold days. According to ISONE, “Electricity supplies should [not a reassuring word] be sufficient to meet consumer demand for electricity in New England this winter.” They then go on to say, “but constraints on the region’s natural gas pipelines could pose a challenge to reliable operations.” In other words, if it gets really cold and snowy, we’re screwed. So, to fend off that screwing, ISONE has devised a program to load up on oil, of all things, and LNG, to help produce electricity if natgas runs short. Don’t say we haven’t repeatedly warned New England that without new pipelines they will not only continue to pay 4x what everyone else pays for electricity, at some point there just won’t be enough fuel sources to produce electricity and sooner or later New England will have brownouts and/or rolling blackouts–because THEY’RE FOOLS and continue to reject safe, reliable natural gas pipelines…
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    Liberal PA News Media Wants ND Pipeline Protesters to Come Here

    mob-ruleAnd so it begins. So-called “reporters” who are either too stupid or too lazy to examine important issues closely, like the issue of paid, out-of-state protesters who descended on Standing Rock, ND and have engaged in multiple lawless acts, are now beginning to hold up Standing Rock as the model for how to defeat important oil and gas infrastructure projects in the Marcellus/Utica region. The editorial writer(s) at the Delaware County Daily Times has deigned to compare Standing Rock and the temporary block on completing it by the politicized Obama Administration to the Mariner East 2 NGL pipeline slated to be built across Pennsylvania. The writer(s) express their hope to see the lawless criminals from Standing Rock to “pop up here if and when construction on Mariner East 2 begins.” You see why the newspaper industry in this country is crashing and burning? Because of such blatant bias and misstatements of fact (i.e. lies)…
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    Technip, FMC Shareholders Approve Merger; Fat Lady Sings in Jan?

    fat-lady-singsIn May, U.S.-based oilfield services company FMC Technologies announced they will merge with their much larger quasi-competitor, France-based Technip, in an all-stock deal that will create a new company called TechnipFMC worth $13 billion (see FMC Technologies & Technip to Merge, Create $13B Oilfield Giant). FMC had/has some operations in the Marcellus/Utica, hence the merger has implications for our region. The Obama Dept. of Justice approved the deal in June (see FMC Technologies/Technip Merger Approved by Obama DOJ/FTC). Apparently it’s A.O.K. for a French company to buy an American company, but when one American company (Halliburton) wanted to buy another (Baker Hughes), that wasn’t OK with the Obamadroids (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). But we digress. The European Union, like the Obama DOJ, also gave its blessing on the deal. The shareholders for the two companies voted yesterday to consummate the marriage. The only thing left now is for the fat lady to sing, which appears will happen early in 2017 (likely January). The date of the official merger will be known on Dec. 21…
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    Cheniere Repeats $1.5B “Note” Strategy with Second LNG Subsidiary

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    Cheniere Energy operates the only liquefied natural gas (LNG) export facility in the United States (currently), in Sabine Pass, Louisiana. There are others planned, like the Cove Point, Maryland facility currently under construction. We keep tabs on Cheniere, even though it’s located in Louisiana, because some of the pipelines that serve it have Marcellus/Utica natural gas flowing through them. It’s potentially a very important market for our natural gas. It’s not cheap to build and operate these massive petrochemical plants. In September Cheniere floated IOUs (i.e. bonds) to raise $1.5 billion for the Sabine Pass operation (see Cheniere Energy Upsizes IOU Offering from $1B to $1.5B). What you may not know is that Cheniere is also in the midst of building a second LNG export facility–in Corpus Christi, TX. Although we don’t know for sure, we expect that facility will, one day, also use at least some Marcellus/Utica gas to chill and export abroad. Cheniere must have had good success with raising $1.5 billion for Sabine Pass because they’ve turned around and are now doing it all over again–raising $1.5 billion by floating new notes–for the Corpus Christi project…
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    Feds Dole Out $4.8M to National Labs for Fracking Research

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    The feds are falling in love with fracking. Who knew?! The National Energy Technology Laboratory (NETL) has just awarded six research projects to U.S. Department of Energy (DOE) national laboratories to advance fundamental shale research. The two-year projects, totaling $4.8 million, “will investigate the processes associated with hydrocarbon extraction from unconventional shale reservoirs and lead to a better understanding of factors affecting prudent resource development.” Lawrence Berkeley National Laboratory has three of the projects. The other three go to Los Alamos National Laboratory, Sandia National Laboratories and the Stanford Linear Accelerator Center (SLAC) National Accelerator Laboratory. The projects aim to fill in “knowledge gaps” and will ultimately, hopefully, lead to fracking done more safely and in an “environmentally responsible” way. Here’s a description of the studies the grants will fund…
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    Obama Blocks Dakota Pipeline Outright, “Abandoned Rule of Law”

    anarchyIn one final, breathtaking rejection of the rule of law and poke in the eye of those who support fossil fuels, the U.S. Army Corps of Engineers, doing Lord Obama’s bidding, has rejected granting Energy Transfer (ET) an easement to complete the final leg of the Dakota Access Pipeline that crosses federal land. The out-of-state/paid protesters who have assembled at Standing Rock, ND were orgasmic with delight. Their euphoria, however, will be short-lived as ET expects the incoming Trump Administration to quickly reverse the policy and grant permission to complete the pipeline along its original route. Although this conflict is happening far outside the Marcellus/Utica, it is important for us nonetheless as this group of paid, out-of-state protesters, backed by Big Green money (using money from California billionaire and nut Tom Steyer, among others), has promised to leverage a win against the Keystone XL Pipeline and now the Dakota Access Pipeline by coming to the Marcellus/Utica in an attempt to defeat important pipeline projects in our region. Here’s the latest in the dust-up over the Dakota Access Pipeline…
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    OH Cracker Final Decision Coming Soon, Site Now Cleared & Ready

    PTT Global logoThe future site of a $5 billion petrochemical complex, including an ethane cracker, in Belmont County, OH is now cleared and essentially ready to begin building on. It has taken nearly a year, but the old R.E. Burger power plant that used to sit along the Ohio River is now just a memory. Belmont County officials say they expect PTT Global Chemical, the company that will build and operate the cracker, will make a final (positive) investment decision by the end of March–in just a few months’ time. Although the project began after Shell’s cracker project in Beaver County, PA, the PTT Global project in Belmont County has almost caught up with the Shell cracker project with respect to site readiness and building the actual buildings that will house the mighty cracker…
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    PA DEP Says Ten Mile Creek Radiation-Free; Antis Still Peddle Lies

    no-radiationIn 2014 Pennsylvania anti-drillers from a local chapter of the Izaak Walton League, a so-called conservation organization, attempted a smear job on the Marcellus Shale industry. They alleged that shale drillers were illegally dumping frack wastewater in an abandoned coal mine, the Clyde Mine, which sits near the Ten Mile Creek where the creek joins the Monongahela River. According to the smearmeisters, the illegally dumped wastewater was leaking out of the mine and into Ten Mile Creek (see Is Shale Wastewater Causing Radiation Spike in Ten Mile Creek?). They claimed testing they had done showed high levels of radioactivity that could not come from just acid mine drainage, that it is radioactivity typically seen in shale wastewater. Of course the allegations got a lot of media attention. The Pennsylvania Dept. of Environmental Protection (DEP) investigated and echoed their concerns with initial tests also showing high radioactivity. Except the testing done by the DEP, and the testing done by the Izaak Walton League, WAS THE WRONG TYPE OF TEST. They blew it. Researchers from West Virginia University came in and tested using the appropriate type of test and found no elevated radioactivity (see PA DEP Screws Up Water Test at Ten Mile Creek – Egg on Face). After the humiliation of being outed as using the wrong test, the DEP re-ran tests for six months in 2015–the right kind of tests–and found NO elevated radioactivity in Ten Mile Creek nor anywhere else in the area (see PA DEP Admits No Radiation in Ten Mile Creek, Closes Investigation). The DEP has continued to run tests since that time and issued a final report in November (full copy below) finding, once again, NO elevated levels of radiation in Ten Mile Creek. The response by anti-drilling radicals with an agenda to smear the Marcellus industry? Unbelievably, they once again repeated their allegation of illegal wastewater dumping…
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