Industrywide Issues

  • | | | | | | | | |

    FERC Seeks Input on ET Rover Pipeline – MI Poll Shows 91% Favor

    The Federal Energy Regulatory Commission (FERC) wants to know what landowners and residents along the path of the proposed Energy Transfer Rover pipeline think about the project. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers. The pipeline will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The bulk of the pipeline would run through Ohio (see ET Rover Pipeline Launches New Website, Updated Route Maps). We say ET Rover is “for the children” because the pipeline will generate $91 million in taxes for local schools–in its first year alone (see For the Children: ET Rover Pipeline $91M in School Taxes 1st Year). We spotted a story in a Michigan newspaper about the project. The story says FERC is eliciting feedback until April 11 (be sure to comment!). The story is running a poll of its readers asking them if they support or oppose the project. The results aren’t even close. Some 91% (at the time we wrote this) support the project. See a copy of the poll results below…
    Read More “FERC Seeks Input on ET Rover Pipeline – MI Poll Shows 91% Favor”

  • | | | | | |

    PA Court Says Leaseholder Can Sublease Production Rights

    We’re not sure how many landowners this may potentially affect, but we found a recent court decision by Pennsylvania Superior Court to be interesting. Landowners who had inherited property (and a lease) in Greene County, PA asked the court to “sever” the lease into two parts. The lease is with EQT and its affiliates and is 50 years old–long before Marcellus drilling. The landowner makes the case that because EQT had assigned the production rights to a third party and had never themselves drilled, the lease is terminated. There are two parts to the lease: one which said EQT had up to 10 years to extract oil and gas, the other that EQT can store natgas underground. The landowners were looking to end that portion of the lease that allows drilling because EQT never drilled on or under the property–and by assigning those rights to someone else, they have abrogated their rights under the lease. The court disagreed and said you can’t “sever” production rights from storage rights. If one OR the other happened, under the original lease, that is enough to make all parts of the lease ongoing and enforceable. Our description is likely not very good. Here’s what the legal beagles at Vorys say about the case, along with a copy of the decision…
    Read More “PA Court Says Leaseholder Can Sublease Production Rights”

  • | | |

    Anti-Fossil Fuel Insanity Metastasizes in Brains of Rockefellars

    Question: How did John D. Rockefeller make his billions? Answer: Oil. John Rockefeller worked hard and integrated multiple Pennsylvania refineries into a single company that eventually became Exxon Mobil–the largest oil company headquartered in the U.S. (and one of the largest in the world). As often happens with the generations that follow the one who worked so hard to establish a family fortune–the kids and grandkids and great grandkids were soft. Clueless. Everything handed to them on a silver platter. Which left their brains susceptible to the virus of liberalism–a virus that kills brain cells and renders its victims blubbering idiots. And that’s just what has become of the Rockefeller clan. How’s this for ironic? Last week the Rockefeller heirs announced they’ve sold off all remaining Exxon Mobil stock they owned because Exxon has engaged in “morally reprehensible conduct.” What kind of egregious conduct have they engaged in? Paying for prostitutes to visit drilling platforms offshore for their workers? Bulldozing neighborhoods in poor, third world countries so they can extract oil and gas? Espionage against competitors? Nope. None of those things. The “morally reprehensible conduct” is that Exxon won’t admit that mankind is causing Mom Earth to catastrophically warm up. And that, dear reader, is the highest sin that can committed against the new climate change religion. Which is why we say anti-fossil fuel insanity has fully metastasized in the brains of the Rockefeller clan…
    Read More “Anti-Fossil Fuel Insanity Metastasizes in Brains of Rockefellars”

  • | |

    DOE Publishes First Annual Energy Employment Report

    Last week the U.S. Dept. of Energy issued its first-ever annual Energy and Employment Report (full copy below). The purpose is to show how many people work in the energy industry, and how the makeup of what they do is changing. It’s an interesting report. For example, the report says some 3.64 million people work in “traditional” energy industries, which includes producing, transmission, transporting and storing energy. Another 1.9 million people work either full or part-time in the energy efficiency industry. Adding the two together we get 5.54 million people working in “energy.” Of that number, roughly two-thirds work in tradition energy production and one-third work in figuring out ways to reduce the amount of energy we use…
    Read More “DOE Publishes First Annual Energy Employment Report”

  • |

    Primus Building GTL Methanol Plant in Marcellus Region in 2017

    Primus Green EnergyPrimus Green Energy, builder of gas-to-liquids (GTL) plants announced yesterday they will build a 160 metric tons per day (MT/day) methanol plant using the company’s proprietary technology at “a manufacturing site in the Marcellus shale region” in 2017. That is, the first train will be delivered and installed in 2017. Three more trains will follow, at some point, for a total production capacity of 640 MT/day. The company also plans to build and deploy “multiple projects” across the U.S. and in Asia and the Middle East. Primus’ plants convert natural gas into methanol (used as a chemical feedstock and a fuel), and into other hydrocarbons like gasoline. The announcement below doesn’t say as much as it does. Who is Primus building the Marcellus plant for? Themselves? A customer? Where is it being built? What will the methanol be used for? All unanswered questions…
    Read More “Primus Building GTL Methanol Plant in Marcellus Region in 2017”

  • | | | | |

    Millennium Pipeline Files with FERC to Upgrade Eastern Region

    The Millennium Pipeline stretches ~244 miles from Independence in Steuben County, NY to Buena Vista in Rockland County, NY. The Millennium, which is supplied by local production and storage fields and interconnecting upstream pipelines, serves customers along its route in New York’s Southern Tier region and helps meet the energy needs of northeast markets. MDN is written about 3 miles away from the path of the Millennium in Broome County, NY. In February the Millennium pre-filed an application for what it calls its Eastern System Upgrade (ESU). The ESU would add 7.8 miles of extra looped pipeline in Orange County, upgrade a compressor station in Delaware County, build a new compressor in Sullivan County and make some minor tweaks to metering stations in Rockland County. The project will pump another $275 million into the New York economy with the end result of increasing the flow of natural gas for New York and beyond by fall 2018. Of course THE Delaware Riverkeeper can’t stand it and has launched an all-out assault on the project, hoping to slow it down or stop it…
    Read More “Millennium Pipeline Files with FERC to Upgrade Eastern Region”

  • |

    EIA Report: Trends in U.S. Oil and Natural Gas Upstream Costs

    Our favorite government agency, the U.S. Energy Information Administration, has just published a new report detailing trends and costs in upstream (i.e. drilling) for U.S. oil and natural gas. The report is titled “Trends in U.S. Oil and Natural Gas Upstream Costs” (full copy below). It is a GREAT report. Among some of the highlights: The average well drilling and completion costs in five onshore areas in 2015 were between 25% and 30% below their 2012 level–when costs per well were at their highest point over the past decade. Based on expectations of continuing oversupply of global oil in 2016, the report predicts a continued downward trajectory in costs as drilling activity declines. For example, the report expects rig rates to fall by 5%-10% in 2016 with increases of 5% in 2017 and 2018. The report also expects additional efficiencies in drilling rates, lateral lengths, proppant use, multi-well pads, and number of stages that will further drive down costs measured in terms of dollars per barrel of oil-equivalent ($/boe) by 7%-22% over this period. Below is a summary of the report, followed by a full copy of the report. Take time to read it!…
    Read More “EIA Report: Trends in U.S. Oil and Natural Gas Upstream Costs”

  • | | |

    2 New Injection Wells Proposed for Warren, PA – EPA Reviewing

    In early 2013, Bear Lake Properties in Warren County, PA (near the New York border) opened a new injection well to accept Marcellus Shale wastewater (see NW PA Frack Wastewater Injection Well Begins Operation). The new injection well faced stiff opposition. Columbus Township, where the well is located, originally passed and later rescinded a ban on injection wells under threat of lawsuit (see Columbus Twp, PA Ban on Injection Wells Rescinded). A few local residents tried to pressure the federal EPA, the agency that permits and oversees all injection wells, into reconsidering their approval (see Local Residents Protest 2 Wastewater Injection Wells in NW PA). In the end the EPA granted the permit. Since then, local residents have been testing just about every water source in the county to be sure the injection well isn’t leaking (see Concerned Citizens Test Water Near NWPA Injection Well, No Leaks). Good news: two more injection wells for Warren County are now going through the process of EPA reviews…
    Read More “2 New Injection Wells Proposed for Warren, PA – EPA Reviewing”

  • | | |

    EPA Officials Illegally Use Private Email Servers for EPA Business

    Recent Freedom of Information Act (FOIA) requests for correspondence to and from the U.S. Environmental Protection Agency (EPA) prove out what we’ve been yelling for years: The EPA is a lawless organization, out of control and drunk on its own power. This latest FOIA request, made by the Energy & Environment Legal Institute, finds that EPA Administrator Gina McCarthy is guilty of the same federal crimes as Hillary Clinton is–using a private email server for government business in order to avoid having to disclose secret communication back and forth with (in the case of McCarthy) Big Green groups. McCarthy should be indicted–immediately–and removed from office…
    Read More “EPA Officials Illegally Use Private Email Servers for EPA Business”

  • | | |

    PA Gov. Wolf Caves on Budget Deal After 9 Mo. of Temper Tantrums

    In the end, the recalcitrant and rabidly partisan Tom Wolf, governor of Pennsylvania, delayed his state’s budget for nine months…for nothing. He didn’t get his precious high Marcellus (or state income) tax hikes. He didn’t get pretty much anything he demanded. Like a petulant child stomping his feet and blaming every Republican he could find–in the end everyone saw Wolf for what he is: inept, inexperienced, and unprepared to govern the Keystone State. Like leadership-deficient people throughout history, he’s surrounded himself with suck-ups who won’t give him much-needed counsel that goes against his childish demands. They just tell him he’s right and to stick with it. Which has resulted in a disaster for PA. It was PA’s Democrats, in the end, that forced Wolf’s hand. Those in his own party. (Et tu, Brute?) PA’s Democrat legislators told Wolf if he didn’t allow the latest budget proposal to pass, they would vote with Republicans to override his threatened veto. And that would completely unmask him for the leaderless chump he is. So Wolf won’t veto the latest proposal–which contains no new taxes–allowing it to become law. Thank you to PA Republicans for standing firm and WINNING! The media can’t spin it, the Dems can’t spin it–Wolf lost and the Republicans won. Every citizen in PA is a winner because of it…
    Read More “PA Gov. Wolf Caves on Budget Deal After 9 Mo. of Temper Tantrums”

  • | | | | |

    Columbia Gas of PA Asks PUC for Permission to Raise Rates

    Columbia Gas of Pennsylvania, a division of NiSource, has filed a request with the Pennsylvania Public Utility Commission (PUC) to raise rates so it can recuperate costs spent in upgrading its natural gas delivery system for customers. Columbia Gas has spent $1.1 billion from 2007 to 2015. However, they’re only asking for a mere $55 million rate increase…
    Read More “Columbia Gas of PA Asks PUC for Permission to Raise Rates”

  • | |

    Which Energy Source Added the Most Electric Generation in 2015?

    Question: Which power source added the most megawatts of electric generating capacity in 2015? If you answered, “Natural Gas!”, you would be wrong. The #1 source of new electric generation last year was wind. The #2 source last year was natural gas. And the #3 source of new electric power last year was solar. Important distinction: This is new capacity added. If you look at how much electricity is today produced by each source, natural gas is #1 at around 33%, coal is #2 at around 32%. Down at the bottom are sources like wind, which produces around 5% of our total electricity needs, and solar producing about 1%. So while the headlines may read that wind was #1 in new electric capacity last year, put into context, it’s a thimbleful compared to natural gas and coal–evil fossil fuels. Which is why it’s folly to think that so-called renewables will replace fossil fuels within the next two generations. Ain’t gonna happen. Here’s the EIA’s report on new electric capacity coming online in 2015…
    Read More “Which Energy Source Added the Most Electric Generation in 2015?”

  • |

    Wind Turbines Killing Bats by the Millions – Shut Them All Down?

    We’ve said this many times before: Every single energy source has its positives and its negatives. Even so-called renewable energy sources are not perfect. Take wind energy, for example. Today we ran a story from the EIA that points out the #1 source of new electric generating capacity in the U.S. in 2015 was from wind (see Which Energy Source Added the Most Electric Generation in 2015?). Cool. We like wind. We like solar. We like natural gas. We say, let the free market determine the best energy source–not some sniveling climate changer who thinks he or she knows best which energy source you should use. We find it kind of humorous that fossil fuel haters who promote renewables like wind as the perfect solution tend to gloss over some huge negatives. For example, Dominion recently changed the route of a natural gas pipeline in order to avoid killing a threatened species of salamanders (see Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp). The change was demanded by Big Green proponents. Yet windmills each year are killing millions of bats–some of them endangered species–and we don’t hear a PEEP from Big Greeners. Why is that? Are they now in the business of picking favorite mammals? They like salamanders but hate bats? Are they bat bigots? Here’s the story of how giant windmills are killing literally millions of bats around the world–and some of the bat species being killed are threatened…
    Read More “Wind Turbines Killing Bats by the Millions – Shut Them All Down?”

  • | | | | |

    MHR Wiggles Out of One Midstream Contract, Sues to End Another

    Two weeks ago Magnum Hunter Resources (MHR), a driller focused almost exclusively on the Marcellus/Utica and going through bankruptcy protection proceedings, struck a deal with pipeline company Texas Gas Transmission Inc. to terminate four existing contracts with company to use its pipelines. MHR was pressuring Texas Gas to cancel the contracts it has with MHR subsidiary Triad Hunter, but Texas Gas was resisting. In the end Texas Gas agreed to cancel the contracts provided they get a $15 million “unsecured claim” which grants Texas Gas the right to be near the front of the line to get paid $15M when MHR is either sold or emerges from bankruptcy proceedings. MHR isn’t, however, having as much success with canceling signed contracts for another of its subsidiaries in the Bakken Shale region. Bakken Hunter has an existing, signed contract with Oklahoma midstream company Oneok. Citing the recent Sabine Oil & Gas ruling in which that company was allowed to cancel midstream contracts during bankruptcy (see Midstream Nightmare Comes True: Judge Lets Driller Cancel Contracts), MHR is asking a Delaware bankruptcy court to allow them to wiggle out of the Oneok deal. In addition to updates on these two situations, we also have news that the Securities and Exchange Commission is at least partially blaming two former Magnum Hunter employees–a chief financial officer and chief account officer–for the company’s financial predicament…
    Read More “MHR Wiggles Out of One Midstream Contract, Sues to End Another”

  • | | | | | | |

    MarkWest Hazardous Spill at Mobley Plant Now Cleaned Up

    One month ago there was an accidental release of a hazardous chemical at the MarkWest Energy cryogenic processing plant in Mobley (Wetzel County), WV (see MarkWest’s Mobley Processing Plant Spills Hazardous Oil into Creek). The fluid in question is DOWTHERM™ MX Heat Transfer Fluid, a chemical used as as a heat transfer fluid meant for closed-loop systems. An estimated 3,000 gallons of the fluid spilled, some of it reaching the North Fork of Fishing Creek and some of that entered the water intake for the community of Pine Grove, WV. However, the plant (Pine Grove Water Works) was closed before any of the water was used by local residents–so there was no harm done. MarkWest has reported they are done cleaning up the spill and the Pine Grove Water Works is back up and running…
    Read More “MarkWest Hazardous Spill at Mobley Plant Now Cleaned Up”

  • | | |

    Dominion’s Atlantic Coast Pipeline Makes Major Strides

    Some very good news for the $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Dominion, the main sponsor of the project, reports they have agreements for 96% of the capacity along the 1.5 billion cubic feet per day pipeline. Not only that, but 90% of the landowners along the pipeline’s proposed route have granted Dominion survey access, and some 500 landowners (representing 18% of all landowners) have already signed contracts to allow the pipeline. The antis are desperately trying to stop this project–and they’re failing…
    Read More “Dominion’s Atlantic Coast Pipeline Makes Major Strides”