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FERC Sides with Energy Transfer Against Chesapeake re Pipe Contract
On Sunday, June 28, Chesapeake Energy, with major operations in the northeast Pennsylvania Marcellus, filed for bankruptcy (see Chesapeake Files for Bankruptcy – Debtors to Take Ownership). As part of the filing, the company asked the bankruptcy court to allow it to break existing, legal, enforceable contracts with several pipeline companies, including Energy Transfer’s Tiger Pipeline (see Chesapeake Asks Court to Break Pipeline Contracts, Including M-U). The Federal Energy Regulatory Commission (FERC) is siding with Energy Transfer against Chessy.
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Sunoco Logistics Partners (i.e. Energy Transfer) was drilling horizontally underneath Snitz Creek in Lebanon County, PA for its Mariner East 2 Pipeline project when it experienced yet another “inadvertent return”–nontoxic drilling mud leaking out of a place where it shouldn’t. In 2018 the same thing happened and antis blew a gasket over a “spill” of five gallons (see 
Pipeline builder Otis Eastern, headquartered in Wellsville, NY (western part of Upstate) has built a lot of pipelines throughout the northeast since its founding in 1936. In recent years the company has worked on a number of Marcellus/Utica projects, including Energy Transfer’s Mariner East 2 project and National Fuel Gas Company’s Marcellus Gas to Market project. Otis is selling itself for an undisclosed amount to a much larger company, Artera Services, LLC, based in Atlanta, Georgia.
It’s been an uphill battle to complete Mountain Valley Pipeline (MVP), a 303-mile Marcellus/Utica gas pipeline from Wetzel County, WV to Pittsylvania County, VA. The project has been vigorously opposed by radical environmentalists from the beginning. Frivolous lawsuit after frivolous lawsuit has been filed by Big Green groups bankrolled by billionaires. Finally in June Equitrans, the builder, said they should be able to complete the 92% done pipeline by next spring (see 
Democrats are nothing if not creative. A leftist Democrat in the Virginia legislature, Del. Chris Hurst (Montgomery County) has introduced a bill to try and kill the remaining construction of the 92% complete Mountain Valley Pipeline (MVP). Dems couldn’t stop the project in the courts. They couldn’t stop it with nutjobs living in the tops of trees for months on end. They couldn’t get lefty Democrat Gov. Ralph Northam to stop it. So now they’re trying this: A bill that would require *any* company hiring a crew of 50 or more “temporary” workers during the COVID-19 pandemic to receive prior approval from the Democrat Commissioner of Dept. of Labor and Industry first.
On August 24, 31 radicalized Big Green groups from across Pennsylvania sent a letter to the Dept. of Environmental Protection (DEP) Secretary Pat McDonnell demanding (they always demand) the DEP immediately and permanently revoke all Mariner East construction permits and prohibit the issuance of any future permits. Yeah, just stop the pipeline, which is about 98% done, from ever getting completed. What else can you say except it’s demented? Nobody in their right mind would reasonably request or expect the DEP to simply stop the project permanently.
Our favorite government agency, the U.S. Energy Information Administration (EIA), maintains a list of pipeline projects going back to 1996. Based on that list EIA recently published an article on their Today in Energy site pointing out during the first half of 2020 some 5 billion cubic feet per day (Bcf/d) of new natgas pipeline capacity (across the entire country) came online. They also point out some 8.7 Bcf/d of previously planned new pipe capacity was canceled in 2020, including Atlantic Coast Pipeline and the Constitution Pipeline, both here in the M-U region. We grabbed the spreadsheet of the 145 active and/or canceled pipelines in 2020 and trimmed it down to show the list of pipelines active or canceled that have the potential to flow M-U molecules. Our list (below) shows 41 active pipe projects and 4 canceled projects.
While drilling in Chester County in the Marsh Creek State Park two weeks ago, Energy Transfer’s Mariner East 2X pipeline experienced an “inadvertent return”–nontoxic drilling mud coming up out of the ground where it’s not supposed to (see 
Last December both Rover Pipeline and NEXUS Pipeline, two large Utica-gas pipelines traversing Ohio, appealed their property tax valuations to the Ohio Dept. of Taxation, looking to trim their tax bills in Stark County by up to 50% (see 
Two weeks ago while drilling in Chester County in Marsh Creek State Park, Energy Transfer’s Mariner East (ME) 2X pipeline experienced an “inadvertent return”–nontoxic drilling mud coming up out of the ground where it’s not supposed to (see 
The Appalachian Trail Conservancy, The Conservation Fund, and Mountain Valley Pipeline (MVP) yesterday issued a joint announcement that MVP is paying $19.5 million to the Conservancy to “conserve land along the Trail corridor and support outdoor recreation-based economies in Virginia and West Virginia.” It is the largest “funding package” in the Conservancy’s history to advance conservation efforts in a single geography.
“Hurry it up, will ya?” That was the upshot of a message sent by TC Energy to the Federal Energy Regulatory Commission (FERC) with respect to giving final approval for its Louisiana XPress project. FERC granted the project a favorable environmental assessment (EA) on February 6 (see 
Please don’t come to Boston. If you do, you may experience blackouts from an unreliable electricity grid powered by so-called (very unreliable) renewables. That’s our takeaway on the obtuse attitudes that pervade New England and the Communist politicians that run that section of the country.