Industrywide Issues

  • | | | |

    WVU Professor “All In” on Obama’s Coal-Killing Clean Power Plan

    James Van Nostrand
    James Van Nostrand

    When liberal Democrat James Van Nostrand, director for West Virginia University’s Center for Energy and Sustainable Development, associate professor of law at West Virginia University, and a man-made global warming Kool Aid drinker addressed a recent forum at Wheeling Jesuit University, he told the audience they should just accept President Obama’s Clean Power Plan (CPP) and its death sentence for the coal industry. He essentially said “just get over it and move on. Lie down and admit defeat.” It put a smile on Van Nostrand’s face that WV Gov. Earl Ray Tomblin has appeared to cave and will pursue a plan to comply with our Dear Leader’s CPP directive, even though 26 states have sued to stop the plan, including WV (see 26 States Ask Federal Court to Shut Down Clean Power Plan Now). Here’s an overview of Van Nostrand’s “just admit you’ve been beaten” speech…
    Read More “WVU Professor “All In” on Obama’s Coal-Killing Clean Power Plan”

  • | | | |

    New BP Technology Report Predicts O&G Supplies will Double by 2050

    researchPeak Oil theorists like Art Berman won’t be happy with the latest report just published by oil giant BP. BP and other large energy companies publish annual energy outlook studies that we’ve highlighted in the past (see BP’s Annual Energy Report: Smallest Demand Increase since 1990s). For the first ever, BP has just published a report called the BP Technology Outlook (full copy below) that reveals much of their internal research on new technologies that will keep energy supplies plentiful and affordable, “enough to meet projected demand many times over” according to the study’s authors. While BP pays much lip service to so-called renewable sources of energy in this new study, here’s the part that will give Berman and other Peak Oil fanatics heartburn: “applying today’s best technologies to discover oil and gas resources could significantly increase ‘proved reserves’ from 2.9 trillion barrels of oil equivalent to 4.8 trillion barrels – nearly double the 2.5 trillion barrels required to meet projected cumulative global demand through to 2050.” Did you catch that? New tech available today can and will double the amount of recoverable oil and gas. So much for Peak Oil and Gas! We’re awash in it and will remain so for generations…
    Read More “New BP Technology Report Predicts O&G Supplies will Double by 2050”

  • | | | | | | |

    OH Landowners File Royalty Class Action Lawsuit Against Chesapeake

    lawsuitA group of Ohio landowners is doing what others have previously done in Pennsylvania, Texas and elsewhere–they’ve filed a proposed class action lawsuit against Chesapeake Energy claiming Chessy has screwed them and about 1,000 other Ohio landowners out of a collective $30 million in royalty payments. The lawsuit was filed last Monday in Columbiana County Common Pleas Court (copy embedded below) by an Akron, OH woman and the owners of two Columbiana County farms. In addition to Chesapeake, French company Total E&P USA, Pelican Energy LLC and Jamestown Resources LLC were also named in the lawsuit. The plaintiffs claim the only allowed deduction from royalties, according to signed leases, is for taxes–not for drilling expenses, not for post-production costs, etc. The lawyers filing the lawsuit figure there are at least 1,000 landowners with 40,000 acres who have been negatively affected by Chesapeake’s royalty shenanigans…
    Read More “OH Landowners File Royalty Class Action Lawsuit Against Chesapeake”

  • | | | |

    Philly Enviro-Nazis Attack Dem Councilman for Visiting Drill Site

    geenaziA story in Philadelphia Magazine perfectly illustrates the Nazi-like control freaks that inhabit anti-fossil fuel organizations like Food and Water Watch and the fringe group Action United. Philadelphia City Councilman Curtis Jones Jr. is a bone fide, card-carrying liberal Democrat. In 2011 Jones called for a fracking moratorium in the Delaware River Basin. Since that time Jones has actively advocated for no fracking/drilling in the Philadelphia region. Four years ago the Marcellus Shale Coalition invited Jones (and others) to tour a drilling rig, to see how it’s done. At the time, he declined. It’s always so much easier when you stick your head in…the sand. But Jones is a member of the Philadelphia Gas Commission, the group that oversees the city-owned Philadelphia Gas Works (PGW). A recent audit recommends PGW buy more Marcellus Shale gas (see Expensive Audit Tells PGW to Buy More PA Shale Gas to Save Money). So Jones, being on the Gas Commission responsible for overseeing PGW, felt it would be worthwhile to go ahead and take that rig tour and learn the facts for himself first-hand rather than relying on second-hand opinions. So Jones agreed to attend a tour last Friday. He even allowed his name to be put on the invite to encourage others to “go see for yourselves” just what happens at a drilling rig. And that, dear reader, is anathema to the wackos at groups like Food and Water Watch, the Sierra Club, THE Delaware Riverkeeper, Action United, on and on and on. Actually touring a rig and learning that this activity is safe, and advantageous, and not the environmental holocaust it’s made out to be? That blows their lies right out of the water and they can’t have that. And so Food and Water Watch, along with Action United, attacked one of their own–Curtis Jones–for the simple act of visiting a drill site to see it for himself…
    Read More “Philly Enviro-Nazis Attack Dem Councilman for Visiting Drill Site”

  • | | | | | | |

    Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp

    Cow Knob Salamander
    Cow Knob Salamander

    Contrary to what anti-fossil fuelers would have you believe, midstream companies building big pipeline projects DO listen to concerns and they DO change the route of a pipeline to address those concerns–like changing the route to minimize environmental impacts or to address the concerns of landowners. For example, Dominion has just announced it filed route changes for the Atlantic Coast Pipeline, a $5 billion natural gas pipeline running from West Virginia through Virginia and into North Carolina. The changes are made to minimize impacts on salamanders in two locations, to minimize impacts on a historic district, and to avoid crossing a swamp (yes, a swamp). Somewhere along the way in the past 30 years swamps became precious ecological assets instead of pools of stagnant, smelly, mosquito-infested water that need to be drained (go figure). Dominion is willing to play along. “Hey, if that smelly swamp is important to you, we’ll spend an extra $XX million and go a different route.” Dominion is not alone. Theirs is just the latest example that totally refutes the yarns spun by ninny nanny antis who blat about evil Big Pipelines and how they destroy everything. Here’s the latest “we’ll make some adjustments to the route to keep everyone happy” notice from Dominion…
    Read More “Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp”

  • | | | | | |

    DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits

    takeoverIt was just two weeks ago that MDN posted an article saying the New York Dept. of Environmental Conservation (DEC) has had enough time to approve stream-crossing permits for the much-needed Constitution Pipeline. It’s now time to force their hand (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). As we wrote in that piece, the DEC risks the very real threat that the Federal Energy Regulatory Commission (FERC) may step in and force the DEC to issue the permits. Now a high-ranking official with the DEC has essentially said the same thing we did–on the record…
    Read More “DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits”

  • | | |

    PA Marcellus Gas Claims a Nuclear Scalp in Central NY

    FitzPatrick Nuclear Plant
    FitzPatrick Nuclear Plant

    Low-cost Marcellus Shale gas has just taken out a nuclear plant in New York State. Entergy, owner of the James A. FitzPatrick Nuclear Power Plant in Scriba, NY, says they will shut down the plant in 2016 or 2017 because of the “continued deteriorating economics of the facility” and because of “significantly reduced plant revenues due to low natural gas prices, a poor market design that fails to properly compensate nuclear generators like FitzPatrick for their benefits, as well as high operational costs.” The FitzPatrick Nuclear Power Plant generates 838 megawatts of electricity, enough to power more than 800,000 homes, and employs 600 people in Oswego County, NY. Essentially over-regulation that drives up costs have shut it down. The question now is, where will those 800,000 homes get their electricity? Oh, they won’t go dark. But they will begin to pay much higher prices for their electricity than they do now. Unless a new natgas-fired electric plant opens up…
    Read More “PA Marcellus Gas Claims a Nuclear Scalp in Central NY”

  • | | | | |

    OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!

    tax revenueIn a somewhat related story posted today, MDN tackles the thorny issue of taxing pipelines in Pennsylvania. As serendipity would have it, last week Energy in Depth posted an excellent article on the financial impact pipelines are having in Ohio. Would you believe it if we told you that not only will an astounding $8 billion be spent to build new pipelines in the Buckeye State in 2016, but also an estimated $360 million in ad valorem property taxes (taxes on pipelines) will roll in to local municipal coffers. Next year. And every year thereafter! Here’s the numbers broken down by who is doing the spending and paying the taxes, and which pipelines will generate the most economic activity in Ohio next year…
    Read More “OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!”

  • | | | |

    Is it Time to Tax Big Pipelines in PA?

    is it time yetAn Associated Press (AP) story appearing in multiple newspapers and in online outlets has returned to the meme of how unfair it is that pipelines in Pennsylvania are not taxed, as they are in other states like New York, Ohio and West Virginia. Perhaps they have a point? No, MDN isn’t going “soft”! We’ve long made the argument that a permanent structure in the ground should benefit landowners beyond a one-time, up-front payment (see the suggestion by Bryant LaTourette made at the Constitution Pipeline scoping hearing in April 2014: Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The counter to landowners receiving ongoing royalties for pipelines is the argument of electric power lines. They run everywhere over people’s property. You can’t build a structure under or near such lines once they are in place. Yes, they can be taken down/removed (i.e. not “permanent”), but when was the last time that happened? Landowners are not given an ongoing royalty for the electricity flowing through power lines that criss cross their land. Why would you grant an ongoing payment/royalty for a pipeline in the ground if you don’t for a power line above the ground? You see this is a thorny, complex issue. Although individual landowners in states like New York don’t receive an ongoing royalty for pipelines, the pipelines themselves are considered property and pipeline companies are taxed for having them in the ground, giving a community-wide benefit to all residents in a town or village. We’ve remarked before that the property taxes where we live (in NY) have gone DOWN because of a local pipeline. When’s the last time you heard about taxes going down in New York State?! In Pennsylvania, pipelines are NOT taxed, and therefore taxpayers in those communities don’t benefit. That’s the bone of contention…
    Read More “Is it Time to Tax Big Pipelines in PA?”

  • | | |

    Dartmouth Research: Fracking’s Benefits Extend Hundreds of Miles

    crickets chripingIt’s always fascinating for us to see which universities tout the research papers published by their professors and students, and which don’t. And which papers they decide to promote, and which they don’t. Publish a study that knocks fracking as somehow damaging the environment? That’s worth a full-blown press release and calls to the New York Times to see if you can get some juicy PR. Publish a paper that concludes, oh, the economic benefits of fracking actually extend out for hundreds of miles? Not a peep. In fact such a study was released by Dartmouth researchers called “Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution” (full copy below). The report concludes: “Every million dollars of oil and gas extracted produces $66,000 in wage income, $61,000 in royalty payments, and 0.78 jobs within the county. Outside the immediate county but within the region, the economic impacts are over three times larger. Within 100 miles of the new production, one million dollars generates $243,000 in wages, $117,000 in royalties, and 2.49 jobs.” You might think such good news would be emblazoned on major newspapers across the country. Nope. Nothing. Nada. Zippo. That kind of objective research, that finds fracking benefits society, doesn’t fit the liberal bias of mainstream media. So they ignore it. If they don’t cover it, it essentially doesn’t exist. What a shame…
    Read More “Dartmouth Research: Fracking’s Benefits Extend Hundreds of Miles”

  • | |

    26 States Ask Federal Court to Shut Down Clean Power Plan Now

    shut it downMDN has highlighted in several posts the draconian and dictatorial Clean Power Plan (CPP) issued by B.H. Obama’s Environmental Protection Agency (EPA). Not only will Obama’s CPP outright assassinate the coal industry in this country, it will deliver a mortal wound to the natural gas industry, a wound it may not survive (see Obama Stabs Natural Gas Electric Plants in Clean Power Plan). The EPA intentionally delayed publishing a final copy of the plan (by 87 days) in order to run out the clock. They knew the sooner they published, the quicker lawsuits would be filed that may defeat the plan. By delaying, they force states to begin implementing the plan because they dare not be caught in violation in case they lose the court battle. Sleazy in the extreme. Once the plan was published in final form, states immediately filed a lawsuit against it (see States Gear Up to Fight Obama’s Illegal Clean Power Plan in Court). The number of states suing the EPA to stop the CPP now numbers 26–over half of these United States of America. The lawsuit also includes dozens of business groups. They are all asking the federal courts to immediately stop any implementation of the CPP while the lawsuit has a chance to work its way through the court system–which will likely take years. This time, as a Wall Street Journal editorial points out, the courts may just grant the stay and shut down the CPP…
    Read More “26 States Ask Federal Court to Shut Down Clean Power Plan Now”

  • | | | |

    MarkWest Tells Unitholders Time to Sign Proxy for Marathon Sale

    vote early vote oftenIf you hold MarkWest Energy “units” (similar to shares of stock), it’s time to vote on the merger/takeover of MarkWest by Marathon Petroleum. In July, MarkWest (arguably the premier midstream company in the Marcellus/Utica), and Marathon (the fourth largest refiner in the U.S., headquartered in Ohio) announced a $20 billion deal for Marathon to buy out MarkWest (see Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum). In August, the federal government gave its blessing on the deal (see Federal Govt Approves Marathon Petroleum Buyout of MarkWest). And just last week Marathon said they expect to close on the deal “later this year”–and the end of this year ain’t all that far away (see Marathon 3Q15: Closing on MarkWest Merger “Later this Year”). Last Friday MarkWest released a statement that it’s now time for existing unitholders to sign proxy statements that approve (or not) of the merger. A big meeting will be held on December 1st at MarkWest HQ in Denver for big unitholders, including those representing smaller unitholders via proxy, to cast their vote and plant a big ole rubber stamp of approval on this deal. What? You thought the outcome was ever in doubt? Hate to burst your bubble, but it’s not. This is a done deal folks…
    Read More “MarkWest Tells Unitholders Time to Sign Proxy for Marathon Sale”

  • | | | |

    DEP Board Votes to “Not Endorse” Sec. Quigley’s New Drilling Regs

    slap across the faceIn a big metaphorical slap across the face, the Pennsylvania Dept. of Environmental Protection’s Oil and Gas Technical Advisory Board (TAB) has voted to not endorse re-worked drilling regulations proposed by the PennFuture Sec. of the DEP, John Quigley. We told you two days ago the DEP was meeting with TAB to get the group’s rubber stamp of approval (see New Drilling Rules for PA Take One Big Step Closer to Reality). Looks like Quigley’s hand-picked new board members are not yes men (and women) after all. This is the second DEP advisory group packed with Quigley appointees that has rejected his onerous proposed re-worked regulations. Previously the Conventional Oil and Gas Advisory Committee (COGAC) also told Quigley nyet (see PA DEP Sec Quigley’s Own Committee Appointees Turn Against Him). Which means both conventional and now unconventional drilling advisors, appointed by Quigley himself, don’t believe Quigley’s rejiggered regulations are good. Do we see a pattern developing here? Seeing that two boards of experts are telling him there’s a problem, does that mean Quigley will pause and reflect and perhaps consider changing his proposed rules? Are you kidding! Don’t make us laugh. Oh no no no. Quigley plans to ramrod these new regs through as fast as he can regardless…
    Read More “DEP Board Votes to “Not Endorse” Sec. Quigley’s New Drilling Regs”

  • | | | |

    PA DEP Sec. Quigley Defends DEP, Criticizes Patriot-News Series

    backstabberWow. We didn’t think it possible. The PennFuture Secretary of the Pennsylvania Dept. of Environmental Protection (DEP), John Quigley himself, is sticking up for the honor and reputation of his agency. Last week the Democrat-run Harrisburg Patriot-News ran an attack series against shale energy. We told you about it by reprinting Tom Shepstone’s excellent critique (see Harrisburg Newspaper’s Attack Series on Marcellus Exposed). Tom followed it up with another excellent article with a clip of the vapid lead author’s Twitter feed showing her outright bias against not only shale in general, but against the DEP in particular (see Natural Gas Now, PennLive Shale Series: “Erin” Go Bragh?). Quigley had fully cooperated with the Patriot-News and lead series author Candy Woodall, and now feels betrayed and stabbed in the back (welcome to the club John). So Quigley wrote a response to the profoundly biased attack series–and wonder of wonders, the Democrat Patriot-News actually published his response! Here it is…
    Read More “PA DEP Sec. Quigley Defends DEP, Criticizes Patriot-News Series”

  • | | | | |

    PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed”

    misinformedAbout 20 hippie retreads showed up in Harrisburg, PA on Wednesday to protest outside of the Dept. of Environmental Protection (DEP) regional office in Harrisburg to protest the fourth meeting of Gov. Tom Wolf’s Pipeline Infrastructure Taskforce. In May Gov. Wolf announced he was forming a taskforce to study and make recommendations on how the state can better work with (i.e. control) where local gathering pipelines are installed (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). DEP Secretary John Quigley packed the task force with 42 members, most of them government employees (beholden to Wolf/Quigley for their jobs) as well as some from the “environmental” community and a few from the pipeline industry (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). The gang of 42 was meeting for the fourth time in an effort to complete a draft report by mid-November. Some of the best and brightest gathered outside, including THE Delaware Riverkeeper, Maya van Rossum, to protest. Quigley called the assembled antis “badly misinformed”…
    Read More “PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed””

  • | | | | | |

    French Co. Gets Contract for Key Components in Belmont Cracker

    puzzle pieces falling into placeAnother piece of the puzzle slides into place with respect to the $5.7 billion ethane cracker project in Belmont County, OH planned by Thailand-based PTT Chemical and financial partner Marubeni Corp. from Japan (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). The quickly got serious when PTT’s CEO Supattanapong Punmeechaow visited the proposed site last month to announce they are spending the first $100 million on engineering work for the cracker plant over the next 9-12 months with two companies–Bechtel Enterprises and Fluor Corporation (see PTT Announces 2 Contractors Working on Belmont Cracker Plant). The project is truly taking on an international flavor. A third company has stepped forward to say they’ve now been contracted to design and build the furnaces and other key components of the cracker. That company is the Paris, France-based Technip. Below is their announcement with details about what, exactly, they will provide for the project…
    Read More “French Co. Gets Contract for Key Components in Belmont Cracker”