Industrywide Issues

Axiall | Energy Services | Ethane | Industrywide Issues | Processing Plants

4th World Class Marcellus/Utica Ethane Cracker…in Louisiana??
July 14, 2015July 14, 2015

According to the The Intelligencer/Wheeling News-Register, yet another new ethane cracker project is being planned that will be fed by Marcellus and Utica Shale ethane. Currently there is one serious proposal that increasingly seems like it will happen (Shell’s cracker plant in Beaver County, PA), one somewhat serious proposal (joint venture between Korean company PTT Global Chemical and Japanese financier Marubeni for a plant in Belmont County, OH), and one not-so-serious proposal (Brazilian company Odebrecht building a plant near Parkersburg, WV). This would be the fourth “world class” ethane cracker plant to be fed by Marcellus/Utica ethane–if it gets built. And where would it be built? Louisiana. Which doesn’t create jobs or improve the economy in the Marcellus/Utica region–hence our less-than-enthusiastic response to the news. Atlanta-based Axiall Corporation is partnering with Korean company Lotte Chemical Corporation to potentially build a new ethane cracker in the Lake Charles, LA area. Anticipated start-up would be the end of 2018, if the project goes forward…
Read More “4th World Class Marcellus/Utica Ethane Cracker…in Louisiana??”
Industrywide Issues | Research | Utica Shale

July EIA DPR – Utica Stands Alone with Higher Natgas Production
July 14, 2015July 14, 2015

MDN’s favorite government agency, the U.S. Energy Information Administration, published the latest monthly Drilling Productivity Report (DPR) yesterday. Once again, like the June report, this latest report shows that over the next month natural gas production (and oil production) from the country’s seven largest shale plays will decrease. Last month was a milestone/first: Marcellus Shale production slipped (see A Sad First: EIA’s June DPR Reports Marcellus Production Slips). That trend continued and accelerated in the July report (which forecasts production over the next 30 days). Last month Marcellus production decreased by 28 million cubic feet per day (Mmcf/d). This month? It will decrease by 41 Mmcf/d. Natgas production from all seven shale plays together will take their deepest dive yet–down 260 Mmcf/d from the previous month. However, to put it in perspective, that’s down just 6/10ths of one percent, or 0.6%. It’s hardly a bloodbath. There is one bright spot with respect to natural gas production. Utica Shale natgas production was, once again, higher in this month’s report than in last month’s report. Natgas production in the Utica was up 42 Mmcf/d in June, and up 22 Mmcf/d in July. The Utica is newer and contains natural gas liquids, typically making it more profitable to drill than the Marcellus. Also, a number of new pipelines already in the works have continued to come online in the Utica. For those two reasons the little Utica continues to rock on while all of the other shale plays, including the mighty Marcellus, tapper off…
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Industrywide Issues | Landfills | Research | Statewide WV | West Virginia

WV DEP Study Finds Drilling Cuttings in Landfills are Safe
July 14, 2015July 14, 2015

In 2014 the West Virginia legislature enacted a law that requires the WV Dept. of Environmental Protection (WVDEP) to conduct a study of the impact from disposing drill cuttings and drilling waste (leftover rock and dirt) from natural gas well sites in landfills. Anti-drillers spin tales of glowing in the dark from irradiation and horrible, cancer-causing, death-inducing chemicals leaking from landfills that accept drill cuttings and drilling waste. So members of the WVDEP and a number of outside researchers from several WV universities worked on this important research project that would, once and for all, evaluate the risk from landfills that accept drill cuttings. In early July the WVDEP released the completed study (full copy below). There have been a precious few media reports about the findings from this momentous research project. Why? Because the study “found little concern” regarding leachate associated with “drill cuttings that were placed in approved and permitted landfills, once that leachate was processed through a correctly operated treatment facility.” That is, there is no issue with accepting drill cuttings in WV landfills–contrary to the blathering of anti-drillers…
Read More “WV DEP Study Finds Drilling Cuttings in Landfills are Safe”
Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Supply Chain

ET Rover Spending $85M with 7 OH Companies to Help Build Pipeline
July 14, 2015July 14, 2015

One of the arguments often used to incite opposition to pipelines is “all of the pain, none of the gain”–as in landowners and other members of the community must put up with pipeline construction for a short period of time, and then live with a pipeline in the ground for decades, without seeing any real benefit. Except that argument is patently not true. Take the ET Rover pipeline project, for example. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers and will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. Some 570 of the 711 miles of ET Rover will run through the state of Ohio. How do Ohioans benefit? First, the pipeline will generate $91 million in tax revenues for local schools–in it’s first year (see For the Children: ET Rover Pipeline $91M in School Taxes 1st Year). Second, it will mean cheaper natural gas all along the pipeline’s route. Third, Energy Transfer, the company building Rover, is investing a staggering $3.7 billion to build it. Do you know the kind of economic ripples that makes throughout an economy? For example, ET just announced a list of seven Ohio companies they are set and ready to spend $85 million with to help build the pipeline. Below is a list of those companies and the products/services they will provide to ET Rover. A few million dollars here and a few million dollars there adds up to company expansions, new jobs, more tax revenue for local communities–the good times just keep on a rollin’ thanks to a pipeline that “doesn’t benefit anyone” except a vile, nasty fossil fuel company…
Read More “ET Rover Spending $85M with 7 OH Companies to Help Build Pipeline”
Anti-Drilling/Fossil Fuel | Crude Oil | Industrywide Issues | Pennsylvania | Statewide PA

Director of Philly’s Emergency Mgmt to Dela. Riverkeeper: Stuff It
July 14, 2015July 14, 2015

The director of Philadelphia’s Office of Emergency Management, Samantha Phillips, has told anti-drilling zealots to (in our words) “stuff it” with respect to their demands to know the city’s emergency plans in case a trainload of oil derails in or near the city. Phillips will not disclose detailed emergency plans–rightly so–for fear that terrorists could potentially use the information should such a disaster ever occur. Of course public safety is the last thing on the minds of anti-drillers like those in THE Delaware Riverkeeper–a group attempting to incite unrest in Philly by sponsoring “scare them to death” rallies. Phillips is holding firm and will not release details to Riverkeeper to sleazily use in furthering their own twisted agenda…
Read More “Director of Philly’s Emergency Mgmt to Dela. Riverkeeper: Stuff It”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Drought Watch Lifted – Marcellus Drillers can Restart Withdrawals
July 14, 2015July 14, 2015

In May MDN brought you the news that drought conditions in Pennsylvania were beginning to take a bite out of Marcellus drilling activities–at least in the northeast part of the state (see PA Drought Conditions Begin to Affect Marcellus Drilling). On May 26, the PA Dept. of Environmental Protection (DEP) issued a drought watch for 27 counties in the state, including large natgas producers like Susquehanna, Bradford, Tioga and Lackawanna, all counties in northeast PA. On June 17 the DEP expanded the drought watch to 37 counties. However, we have good news. The DEP has just lifted the drought watch for all 37 counties–which means Marcellus drillers previously affected can return to normal operations…
Read More “PA Drought Watch Lifted – Marcellus Drillers can Restart Withdrawals”
Accidents | Energy Companies | Industrywide Issues | Jay-Bee Oil & Gas | Pipelines | Tyler County | West Virginia

Pipeline Ruptures & Burns at Jay-Bee Well Pad in Tyler County, WV
July 13, 2015July 13, 2015

There was a rupture of a gas pipeline at a Jay-Bee Oil and Gas drill pad in the Big Run area of Tyler County, WV early Friday morning. There was no explosion, and no one was injured–but there was a fire and the fire could be seen for miles in the dark early morning. The fire from the ruptured pipe (cause still being investigated) burned for an hour before it was extinguished. The wells on the pad are currently shut-in while the WV Dept. of Environmental Protection investigates. This is not the first Jay-Bee accident in the Big Run area…
Read More “Pipeline Ruptures & Burns at Jay-Bee Well Pad in Tyler County, WV”
Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY | Tioga County (NY)

Update on LPG Fracking in New York – What Comes Next?
July 13, 2015July 13, 2015

As MDN noted last Thursday, taking a break from being on break in breathtakingly beautiful Ogunquit, Maine, a group of Tioga County, NY landowners have painted Andrew Cuomo and his Dept. of Environmental Conservation (DEC) in a corner with respect to fracking in the Empire State (see NY Landowners File to Frack Horizontal Well w/Waterless Tech). Much of the case against fracking for the DEC is that it uses large amounts of water. The Tioga landowners aim to test LPG, or liquefied petroleum gas, fracking–which uses no water. According to the recently adopted Final Supplemental Environmental Generic Impact Statement (FSGEIS) in New York, “Well applications that specify and propose the use of LPG as the primary carrier fluid will be reviewed and permitted pursuant to the 1992 GEIS and Findings Statement”(FSGEIS 2015, pages 9-10). The Tioga landowners mean to use that exception to drill a small well–covering just 53 acres–to prove that fracking is safe. It’s a brilliant move…
Read More “Update on LPG Fracking in New York – What Comes Next?”
Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Rex Energy

ACLU Bullies Threaten Butler County Landowners over Martian Lawsuit
July 13, 2015July 13, 2015

The most anti-American group on the planet that we know of, aside from ISIS/ISIL/Al-Qaeda, is the American Civil Liberties Union (ACLU). So we find it truly rich that the ACLU–always on the lookout to squash anything to do with the American way and freedom and apple pie–has now involved itself in what we loving call “the Martian controversy.” A small group of rabidly anti-drilling (and liberal) parents in the Mars School District in Middlesex Township (Butler County), PA want to prevent the legal, legitimate, and now fully permitted right of Rex Energy to drill a few Marcellus Shale wells three-fourths of a mile away from the Mars School. We’ve long chronicled this battle (see MDN’s list of Mars School stories). Four local residents used two non-profits backed by Big Green money and from the opposite side of Pennsylvania–THE Delaware Riverkeeper and the Philadelphia-based Clean Air Council–to file a lawsuit against the little town of Middlesex to stop any kind of drilling, a move that has so far cost local taxpayers over $35,000 in legal defense fees (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). So a group of 12 Middlesex landowners and a business launched their own lawsuit against the two Big Green groups and the four local residents claiming (rightly) that they are being economically harmed (see Shoe Now on Other Foot: Landowners Sue Martian Anti-Drillers). What do the anti-drilling, liberal, wacko parents and Big Green groups do? They go crying like little girls to the ACLU and now the Big Bully ACLU has ridden into town to tell the 12 landowners and local business they have no right to file a lawsuit! In America!!!…
Read More “ACLU Bullies Threaten Butler County Landowners over Martian Lawsuit”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

Halliburton & Baker Hughes Announce a December Wedding Date
July 13, 2015July 13, 2015

Whatever happened to the shotgun wedding between Halliburton and Baker Hughes–two of the largest oilfield services companies in the United States? After all, the boards for both companies approved the “blissful union” back in March (see Halliburton & Baker Hughes Vote to Approve Shotgun Wedding). What happened is, it’s complicated. Such large buyouts between competitors–when it removes competition from the marketplace–involve approvals from the federal government as well as from governments in other countries where the two companies operate. In the U.S. it is the Dept. of Justice that must approve the merger and the DOJ is a) taking it’s sweet time, and b) forcing Halliburton to sell off some of its assets before they will approve the merger (see Halliburton Shotgun Divorce – Forced to Sell Certain Divisions). In a brief update last week, Halliburton and Baker Hughes announced they’re still mired in getting approvals but hope to officially tie the knot on December 1st…
Read More “Halliburton & Baker Hughes Announce a December Wedding Date”
Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Statewide NY | Statewide PA | Williams

Williams Announces New Upgrades to Transco Pipeline into NYC
July 13, 2015July 13, 2015

More yummy Marcellus Shale gas will be flowing to 500,000 additional New York City residents by the 2017/2018 heating season if an application just filed by Williams with the Federal Energy Regulatory Commission (FERC) gets approved. Last week Williams filed an application with FERC for the New York Bay Expansion Project. The $130 million project will expand capacity on the mighty Transco pipeline by installing new compressor station equipment, replacing a quarter mile of pipeline (in New Jersey), and upgrading meter and regulator stations at several locations in NJ, PA and NY. All work will be done in existing rights-of-way and at existing facilities–no new building or greenfield construction necessary. But that won’t stop the crazies from opposing it…
Read More “Williams Announces New Upgrades to Transco Pipeline into NYC”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Medina County | NEXUS Pipeline | Ohio | Pipelines

NEXUS Pipeline Sues 4 Medina County Landowners for Survey Access
July 13, 2015July 13, 2015

A small group of Ohio landowners in Medina County are resisting requests by NEXUS Pipeline to allow surveyors on their property. We told you about one such old geezer who threatens to shoot surveyors coming on to his property (see Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). Old Walt Giebeler, the geezer in question, can put his 12 gage shotgun away. NEXUS isn’t interested in his property. But they are interested in four other properties where landowners have refused to let them in to simply survey–so NEXUS has filed a lawsuit against them, asking a judge to allow them access. Without a survey, NEXUS can’t finish their application for the Federal Energy Regulatory Commission (FERC), which is, of course, the entire point of denying surveyors access…
Read More “NEXUS Pipeline Sues 4 Medina County Landowners for Survey Access”
Industrywide Issues | Pipelines | Regulation | Statewide WV | West Virginia

WV Establishes New Commission to Study Drilling/Pipeline Safety
July 13, 2015July 13, 2015

West Virginia Gov. Earl Ray Tomblin has, as he promised in his 2015 State of the State address, formed a new commission on oil and natural gas safety to study and make recommendations on how the industry in the Mountain State can get better at safety. Translation: What new laws and regulations can the state adopt to make things safer without destroying the industry in the process? Tomblin announced the members of this new West Virginia Commission on Oil and Natural Gas Industry Safety. Five of the 14 members are from the oil and gas industry. The group is charged with making a final proposal to Gov. Tomblin by Nov. 16…
Read More “WV Establishes New Commission to Study Drilling/Pipeline Safety”
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Gov Wolf Packs Pipeline Task Force with His Own Minions
July 13, 2015November 10, 2015

In May Pennsylvania “in over his head” Gov. Tom Wolf announced the formation of the Pipeline Infrastructure Task Force (PITF)–an effort to “promote unprecedented collaboration of stakeholders to facilitate the development of a world-class pipeline infrastructure system” (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). Translation: We need to slow down the rapid construction of all of these gathering pipelines and since there’s no regulations in PA state law to do it, we’ll create a “task force” to slow it down for us. Last week Wolf announced the 48 people who belong to his hand-picked task force. Not surprisingly, 14 of the 48 members (almost one-third) work for Wolf–in state government, drawing their paychecks from the state and working at the pleasure of Wolf who will fire them if they don’t do what he wants. Another nine work for either county, state or federal governments. That’s 23 of 48 (half) who work for the government. How many are from the oil and gas industry? Only 12 representatives from the O&G industry–and of that, only 6 of them are from pipeline companies, the very entities that will get regulated by this unofficial regulating body…
Read More “PA Gov Wolf Packs Pipeline Task Force with His Own Minions”
Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY | Tioga County (NY)

NY Landowners File to Frack Horizontal Well w/Waterless Tech
July 9, 2015

Wouldn’t you know? The very day that MDN goes on vacation, a HUGE story–at least for New York State–happens. So we’re back with a single posting today. Yesterday a press conference was held in the Town of Barton (Tioga County), NY to announce that a group of landowners flying under the name of The Snyder Farm Group (five families make up the group) have contracted with Tioga Energy Partners to drill a fracked Utica Shale well, and follow it up with drilling a fracked Marcellus Shale well, using liquefied petroleum gas (LPG or propane) and sand. The wells will not use water for fracking–and therefore, according to the landowners, avoid the ban on high volume fracking recently imposed by Andrew Cuomo and his underling Joe Martens at the state Dept. of Environmental Conservation (DEC). There is no doubt this is huge news throughout the state–and is giving heartburn to Cuomo and Martens. What cockamamie grounds can the DEC possibly use to refuse it? It’s a brilliant move by the landowners in Tioga County…
Read More “NY Landowners File to Frack Horizontal Well w/Waterless Tech”
Ashtabula County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Velocys

Velocys GTL Company Suspends CEO for Possible Serious Misconduct
July 7, 2015January 7, 2016

Please see the note on this article for an update about this story.

In September 2013 MDN told you about an innovative new $300 million gas-to-liquids (GTL) plant being built in Ashtabula, OH that will convert Marcellus and Utica Shale gas into chemicals and diesel fuel (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH and More Details on Ashtabula, OH Gas-to-Liquids Plant). The plant was going to be built by a Houston-based company called Pinto Energy using technology created by UK-based Velocys. But last June Velocys announced they were buying out Pinto Energy lock, stock and barrel–including (and primarily for) the Ashtabula GTL plant (see UK-based Velocys Buys Ashtabula, OH GTL Plant). The last we heard about the Ashtabula GTL plant was that the Ohio EPA issued a draft Lake Erie discharge permit in March 2015 and scheduled hearings about the plant (see OH EPA Issues Draft Lake Erie Discharge Permit for Ashtabula GTL Plant). Here’s the bombshell: Velocys has just suspended its Chief Executive Officer, Roy Lipski, pending an investigation into “allegations of serious misconduct”…
Read More “Velocys GTL Company Suspends CEO for Possible Serious Misconduct”