Industrywide Issues

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    Munroe Falls Won’t Let it Go: Files New Lawsuit Against Beck Energy

    Frozen - Let it Go“Unbelievably dense” is how we would describe the “leaders” of Munroe Falls, Ohio. Going back to 2012, Monroe Falls–a “city” with a population of 5,000–has been attempting to stop legally permitted wells from being drilled on private property within city limits. Munroe Falls ordered Beck Energy to cease and desist drilling activity claiming the driller had not secured permits from the city first (Mother May I?). The object was to never let Beck drill, to deny them the permits they would need to seek, so Beck took them to court and an Ohio appeals court struck down Munroe Falls’ “home rule” zoning ordinances as illegal (see OH Appeals Court Strikes Down Home Rule for Drilling). The case was appealed to the OH Supreme Court and the supremes ruled in favor of Beck Energy (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). For normal people that would be the end of it. However, it was a close decision (4-3) and the supremes left lots of wiggle room from municipalities to continue making life miserable for drillers (see Some Options Still Available After OH Court Strikes Down Home Rule). So even though Munroe Falls went all the way to the top and lost–once again they’ve just filed another zoning lawsuit against Beck Energy. Do they never learn?…
    Read More “Munroe Falls Won’t Let it Go: Files New Lawsuit Against Beck Energy”

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    It’s Time to Voice Your Support for the Atlantic Sunrise Pipeline

    Atlantic-Sunrise map
    Atlantic Sunrise Pipeline map – click for larger version

    Now is the time to roar and let the Federal Energy Regulatory Commission (FERC) know that you support the Williams Atlantic Sunrise pipeline project. Atlantic Sunrise is part of the Transco (Transcontinental Gas Pipe Line Corporation) system. It is a $2.1 billion project consisting of compression and looping of the Transco Leidy Line in Pennsylvania, along with a greenfield (brand new) pipeline segment of 178 miles, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania (see Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs). We’ve written numerous stories about Atlantic Sunrise, and irrational opposition to it from places like Lebanon County, PA. Earlier this month FERC issued the Atlantic Sunrise project a positive Environmental Impact Statement (see Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC). That’s a very good sign that the project is about to be approved and for construction to begin. But there’s one more hurdle. FERC will conduct a series of public hearings (that we refer to as freak shows for anti-fossil fuelers), along with receiving written public comment. The irrational antis have cranked up their (very few) supporters to flood FERC with negative comments. Atlantic Sunrise will create $1.6 BILLION in investments to build it–jobs, materials, local companies–everyone benefits! When complete, the pipeline will provide enough natural gas to heat and power 7 million homes. WE NEED THIS PIPELINE. It’s now time for those of us who support safe pipelines like Atlantic Sunrise to make our voices heard. Here’s three things you can do to show your support…
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    Radical Enviro Groups Demand BLM Stop Leasing in OH Wayne NF

    Wayne National Forest
    Wayne National Forest – click for larger version

    Yet another mindless, useless and scientifically wrong letter has been sent to the Bureau of Land Management (BLM) by a group of radical environmental organizations to ask (demand, really) that the BLM halt its plans to allow fracking to take place in the Wayne National Forest (WNF). Nowhere in the letter sent by the Sierra Clubbers, the Center for Biological Diversity, the Ohio Environmental Council and Friends of the Earth does it mention that 60% of the land in WNF is PRIVATELY OWNED. And that the BLM has, for nearly 10 years now, blocked those private rights owners from profiting from their land. Recently the BLM took another baby step on the way to allowing fracking in WNF, which is what has set off the crazies and precipitated this latest factually incorrect letter…
    Read More “Radical Enviro Groups Demand BLM Stop Leasing in OH Wayne NF”

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    UGI Hires PA PUC Commissioner in Brilliant Move for PennEast Pipe

    Pamela Witmer
    Pamela Witmer

    Pamela Witmer, formerly a Pennsylvania Public Utility Commissioner for five years, has left the PA PUC and has joined UGI Energy Services as vice president of government affairs. We previously wrote that Pam was one of the stars at the PUC (see PA PUC Commissioner’s Full-Throated Support of Marcellus Shale). Normally we don’t run announcements of personnel changes–unless its important and somehow affects the Marcellus/Utica. Pam’s new job certainly qualifies. Why? As vice president of government affairs for UGI, Pam will “represent the company’s interests before public officials and regulatory agencies, educate stakeholders on a variety of energy issues, and provide strategic counsel to new and existing customer projects.” In other words, Pam will talk to regulators that she already knows, and be a strong voice throughout the region for projects UGI undertakes. UGI happens to be the main sponsor of the PennEast Pipeline project–a project being vigorously opposed by anti-fossil fuel nutters like THE Delaware Riverkeeper. Now you can see why Pam’s appointment is a brilliant move by UGI…
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    NatGas for PowerGen Record High This Summer; Price to Remain Low

    supply demandStrong demand from electric power generators will push natural gas demand this summer up by an estimated 4 billion cubic feet per day (Bcf/d), according to a new report from the Natural Gas Supply Association (NGSA). However, even though there’s more demand, because supplies are so bountiful, the price of natural gas over the summer is actually expected to go down, not up. Using published data and independent analyses, NGSA evaluated the combined impact of weather, economic growth, customer demand, storage inventories and production activity on the direction of natural gas prices for the summer of 2016 compared to last summer. The NGSA says summer 2016 will see a “remarkable growth in demand.” Even so, NGSA expects “downward pressure on prices compared to last summer.” Bummer. It’s great news for consumers and power generating plants. But not so good news for drillers. Below we have a full copy of the NGSA report…
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    CNBC Survey: How Much Will Oil Cost by the End of 2016?

    Survey saysCNBC, not known for being an objective news source (witness the Republican debate debacle earlier this year), conducted a survey among 22 strategists, traders and analysts on the topic of the price of oil. MDN sometimes covers oil stories because natural gas oil are joined at the hip. Often the same E&Ps that drill for oil also drill for gas. And when you drill a hole in the ground, you get what you get–not only oil, but “associated gas” and gas liquids. Hydrocarbons of all kinds come out of the holes drilled. So it pays to pay attention to the oil market and what’s happening with the price of oil. According to the CNBC survey, those responding said overall they expect drilling to pick back up with the price hitting $50 per barrel. But they also said it won’t really pick up in earnest until the price hits $60 per barrel. Roughly half expect the price of oil to remain in the $40-$50 range until the end of 2016, with the other half thinking it will go higher. Only 9% believe come Dec. 31 the price will be at or above $60/barrel…
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    New Study: Fossil Fuel Divestment Leads to Financial Fiasco

    IPAAWe’ve previously written about the so-called fossil fuel divestment movement–a push to get investors to dump stocks in oil and gas companies in a bid to bankrupt those companies (and send us all back to the energy Stone Age). Major universities hold huge investments of all kinds, including in fossil fuel companies. The crazies are pressuring them to dump those stocks. To their credit, the leaders of Cornell University said they will keep their fossil fuel investments (see Cornell University Rejects Fossil Fuel Divestment Scam). It’s a good thing they did. A new study by the Independent Petroleum Association of America (IPAA) says even if you overlook how an investment portfolio’s value drops after dumping fossil fuels, just the transaction expense of trading away all of those investments can cost billions. In other words, if misguided organizations and investors dump fossil fuels, they’ll lose big money–in brokerage fees. Last time we checked investors invest to make money, not lose it. Here’s the low down from the IPAA…
    Read More “New Study: Fossil Fuel Divestment Leads to Financial Fiasco”

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    626 Mmcf/d of Northeast Shale Gas Begins Flowing to Gulf Today

    Ohio-Louisiana Access Project map
    Ohio-Louisiana Access Project map – click for larger version

    Fantastic news! More Marcellus and Utica Shale gas will begin flowing to the Gulf Coast, beginning today. Some of that gas will go to the Sabine Pass LNG (liquefied natural gas) export facility owned by Cheniere Energy–the first such facility to (recently) begin exporting natural gas to other countries. In October 2014 Boardwalk Pipeline Partners filed a request with the Federal Energy Regulatory Commission (FERC) to reverse the flow on a 690-mile segment of their Texas Gas Transmission pipeline to begin carrying Marcellus and Utica Shale gas from the northeast to the south (see Texas Gas Seeks to Reverse Flow of Pipeline from OH to LA). In September 2015 FERC approved the project, called the Ohio-Louisiana Access Project (see FERC Approves Important Utica-to-Gulf Coast Pipeline Reversal). Today the pipeline reverses and Sabine Pass is the foundation shipper–beginning to accept 300 million cubic feet per day (Mmcf/d) of yummy and wholesome Marcellus and Utica Shale gas…
    Read More “626 Mmcf/d of Northeast Shale Gas Begins Flowing to Gulf Today”

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    $500K Lawsuit Against Litigious Martians Tossed by County Judge

    My Favorite MartianMDN previously reported on the injustice happening in Bulter County, PA where a handful of anti-drilling parents from the Mars School District (“Martians”), backed by money from Philadelphia Big Green groups Delaware Riverkeeper and Clean Air Council, have filed frivolous lawsuit after frivolous lawsuit. The effort is aimed at denying landowners in Middlesex Township revenue from legally permitted drilling. The actions by these radicalized parents have cost the taxpayers of Middlesex Township over $80,000 in legal fees. Landowners with leases got together and sued the radicals to stop this miscarriage of justice (see Shoe Now on Other Foot: Landowners Sue Martian Anti-Drillers). The lawsuit proceeded with the radicals claiming they should be able to sue, but not be sued (see Litigious Martians Cry Like Babies Over $500K Lawsuit Against Them). Unfortunately a county judge has agreed with the Big Money groups from Philly and has tossed the lawsuit against them–with prejudice. Meaning it can’t be re-filed for another go. So much for “justice” when it comes to radical Martians…
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    Halliburton Fracked Eclipse’s 3.5 Mile ‘Purple Hayes’ Utica Well

    failure is an orphanThere’s an old saying that goes like this: “Success has many fathers, but failure is an orphan.” Not long ago MDN reported that Eclipse Resources had drilled what is believed to be the longest horizontal well (on land) in the world–the 3.5 mile “Purple Hayes” Utica Shale well (see Eclipse Res. 1Q16: Drills Longest Shale Well Ever! “Purple Hayes”). It wasn’t but a day or two and one of the companies that worked on the well to help drill it, Nine Energy, popped up to say they had a hand in that recording-breaking well (see Nine Energy Completed World’s Longest Shale Well – in the Utica). Last week MDN told you that “snubbing” company Deep Well Services, from Pennsylvania, also helped with drilling the well (see PA Firm Helped Drill ‘Purple Hayes’ – World’s Longest Shale Well). Drilling any well is truly a team effort with many companies involved. Yesterday yet another company stepped up to claim they played a major role in drilling the Purple Hayes–Halliburton…
    Read More “Halliburton Fracked Eclipse’s 3.5 Mile ‘Purple Hayes’ Utica Well”

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    Cove Point Protester Sentenced to Jail, Lied About Police Assault

    jail cellWhen did it become “vindictive” to prosecute criminals? That’s what we’re supposed to believe about the prosecution of a radicalized, anti-fossil fuel environmentalist who was just, after nearly one and a half years, sentenced to serve 15 days in jail for lying, falsely claiming local police assaulted her. In February 2015 Heather Doyle, a radical “activist” climbed a crane at the Dominion Cove Point LNG export facility to hang a banner that said, “Dominion get out. Don’t frack Maryland. No gas exports. Save Cove Point.” It’s bad enough that she endangered herself along with another activist who aided her. She also endangered rescue workers and police who had to remove her from the crane. Then Doyle lied to the police and claimed Calvert County Sheriff’s Office deputies assaulted her as they were removing her from the crane SHE climbed up. That’s a very serious charge–especially in this day and age. The police investigated and discovered she was lying, so the District Attorney pressed charges. And it took this long for the case to play out. On May 27, Judge Marjorie Clagett of the Calvert County Circuit Court sentenced Doyle to three months in jail, with all but 15 days suspended, 240 hours of community service, two years of supervised probation, and $165 in court costs. It ain’t much, but it’s a little bit of justice against radicals who frequently break the law in a misguided attempt to protest fossil fuels…
    Read More “Cove Point Protester Sentenced to Jail, Lied About Police Assault”

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    PA District Court Rules in Favor of Driller in NEPA Lease Dispute

    lease agreementA decision by the Middle District Court of Pennsylvania is worth noting–for both drillers AND landowners. A landowner in Susquehanna County, PA sold some land already under lease to a new landowner/rights owner. Neither the new landowner nor the previous landowner informed the driller of the change in ownership. The time came to renew the lease and under the terms of the contract the driller sent payment–but didn’t know about the change in ownership–so the driller sent the payment to the previous owner. The new landowner used that faux pas as a legal excuse to sue the driller to break the contract. The new landowner claimed the paperwork filed (not the full lease but an abstract) didn’t contain mention of informing the driller. In other words, the landowner used the “we didn’t know” excuse. The judge disagreed and said, a) the lease itself clearly outlines the responsibilities of the old/new landowners to inform the driller, b) there is a reasonable expectation for the new landowner to perform due diligence in seeking out a copy of the original lease to know that. Therefore the new landowner is still under lease. Here’s an outline of the case, with names…
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    Federal EPA’s Radical “Environmental Justice” Program Unveiled

    EPA-logo.jpgLast week the federal EPA released a draft of its final Environmental Justice Strategic Plan for 2016-2020 (full copy below). The feds are now seeking comments, until July 7, which they will toss in the garbage can. The EPA is and remains a rogue agency–out of control and drunk on its own power (with a need to be reigned in). What is so-called “environmental justice” anyway? It’s coded language for screwing “rich” companies and giving the money to poor folk. The aims of the EPA’s enviro justice plan are: (1) radically expand “rulemaking”–which means enacting laws without the legislative branch doing it, and then enforcing the cockamamie laws they make up using their own thugs; (2) come down on state and local governments like a ton of bricks, forcing them to dance to the EPA’s tune; and (3) continue to use unrealistic standards to punish companies that dare to make money and provide jobs. That about sums up the EPA’s approach, in our estimation. The EPA gets to make up its own laws and then enforce those laws–bypassing Congress altogether. It is a gross violation of the U.S. Constitution. Here’s a copy of the EPA’s “justice” plan, along with a more “objective” (than we offered) description of what the EPA is attempting with this latest power grab…
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    No Wonder the Govt Pulled Funding for Dominion Wind Project

    No WindmillsWe have nothing against renewable energy like wind and solar, per se. We just want them to compete with other forms of energy, like natural gas–without taxpayer money propping up renewable projects. Well-intentioned companies like Dominion frequently engage in dalliances with wind and solar projects–more of a public relations thing than a real effort at developing such sources. How can we say such a thing? Why be so harsh? Look at the recent announcement from Dominion that the U.S. Department of Energy has just withdrawn a promised $40 million grant the company was going to use to build two advanced-technology, 6-megawatt wind turbines in federal waters about 24 miles off the coast of Virginia Beach, VA. At peak production, the two turbines would generate enough electricity to power up to 3,000 homes. It will cost $300 – $380 million to build them. Compare that to a new natural gas-fired electric plant built by Dominion in Virginia that recently went online–the Brunswick Power Station. That plant cost $1.1 billion to build, produces 1,358 megawatts of electricity (even when the wind doesn’t blow) and powers 325,000 homes. So for about trip the cost the natgas plant powers 322,000 more homes than the wind project. That’s what we call a no-brainer–and a perfect illustration of why the government should not be in the business of funding dud wind projects…
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    Midstream Soap: ETE Sues to Walk Away from Williams Takeover Deal

    As the World TurnsIn last Thursday’s episode of “As the (Midstream) World Turns” (ATMWT) MDN told you that Williams still wants to marry Energy Transfer Equity (ETE), even though both companies are suing each other over the proposed merger (see As the M&A World Turns: Williams Still Wants to Marry ETE). Then we took a long weekend for Memorial Day and of course a lot has happened in the meantime. Let’s being with last Thursday: ETE sued to terminate the agreement to buyout Williams, and had the chutzpah to ask the court for a $1.48 billion breakup fee–after ETE themselves sought to change the terms of the merger throwing the deal into doubt! On Friday, sensing the deal is going south, Williams entered into private discussions with ETE about changing the terms of the merger–forgoing $6 billion in cash that was part of the deal, expressing their willingness to accept ETE stock insted. Here’s the latest episode of ATMWT…
    Read More “Midstream Soap: ETE Sues to Walk Away from Williams Takeover Deal”

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    Trump’s Energy Speech Hits a Home Run: Regulate Less, Drill More

    TrumpLast week presidential candidate Donald Trump gave a speech on energy and energy policies at the Williston Basin Petroleum Conference in Bismark, North Dakota. By all accounts, Trump hit the ball out of the park. Before a crowd of some 7,000 people, Trump delighted the audience with a pretty simple message: cut back on regulations that choke America’s exploration and production of energy–and frack a lot more. Which is contrary to “crooked Hillary’s” vision of enacting new regulations to the point that fracking will be banned (see A President Hillary Clinton Would Ban Most Fracking). Trump addressed a variety of issues, including the now-canceled Keystone XL Pipeline from Canada. Trump said he would ask TransCanada to refile its application once he’s president–however, he also said America will keep part of the profits from the pipeline. You have to love a businessman like Trump! So practical and smart. Below are a couple of reports about the speech, to give you the highlights, followed by a video of the full, 44-minute speech itself…
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