Pipelines

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    Exploded Leach XPress Pipe Won’t be Online Until Mid-July

    Leach XPress Pipeline explosion/fire on June 7

    TransCanada’s Leach XPress project–some 160 miles of new natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle which flows 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name)–went online January 1st. A section of the pipeline exploded and burst into flames on June 7 (see Leach Xpress Pipeline Explodes in Marshall County, WV). Still no word on what caused the explosion, although the investigation seems to be centered on a welded seam. TransCanada (and their Columbia Gas Transmission subsidiary) is working hard to get the pipeline back online. The company told shippers in mid-June they expected to have the full 1.5 Bcf/d pipeline back online “early in July” (see TransCanada Says Exploded Leach XPress Pipe Back Online in July). That’s not going to happen since it’s now early July. Last Friday, Columbia pushed back the date to “mid-July,” due to challenges in getting everything remediated and fixed because of heavy rain in the area. Meanwhile, the drillers using Leach continue to find other ways to get their gas to market…
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    PA DEP Grants Williams NE Supply Enhancement Pipe Key Permit

    NESE map – click for larger version

    The Northeast Supply Enhancement (NESE) is a Williams Transco Pipeline project meant to increase pipeline capacity and flows heading into northeastern markets (see Time to Support Transco’s Northeast Supply Enhancement Project). Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Long Island, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. After an initial rejection by the New York Dept. of Environmental Conservation (DEC), Williams refiled an application for the project in May with the DEC (see Williams Refiles Application with NY DEC for Transco NESE Project). Meanwhile, there are portions of the project in Pennsylvania that have already been approved by the PA’s Dept. of Environmental Protection. In a notice published in the June 16 Pennsylvania Bulletin, the DEP issued the project a Section 401 Water Quality Certification for work being done in Lancaster and Chester counties. According to the PA Environment Digest Blog: “The Project facilities consist of approximately 10.17 miles of new 42-inch diameter natural gas pipeline in Drumore, East Drumore, and Eden Townships, Lancaster County and the addition of one 21,902 horsepower motor-driven compressor at the existing Compressor Station 200 in East Whiteland Twp., Chester County.” Too bad the dysfunctional NY DEC couldn’t be more like the mostly-functional PA DEP…
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    FERC Plays Hardball with Rover – Refuses to Certify 4 Laterals

    Rover Pipeline has violated one of the sacrosanct rules of life (and of pipeline construction): “Say what you’ll do, then do what you say.” Rover told the Federal Energy Regulatory Commission it would restore areas previously dug up to lay the pipeline by certain dates (primarily June 30th). In return, based on those promises from Rover, FERC allowed the company to begin service on certain sections of the $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline. Rover has been pressuring FERC to allow two of the laterals–the Burgettstown and Majorsville laterals, that reach into western Pennsylvania–to begin service (see Rover Pressuring FERC to Approve Final 2 Laterals ASAP). We previously assumed (incorrectly) that the other six laterals were all online. That is not the case. Two more laterals are not yet online, in addition to the Burgettstown and Majorsville laterals. We’re not sure which ones. Laterals are offshoot pipelines that connect sources of gas to the main Rover pipeline–a critical component because you need the supply or you’ll have a partially empty mainline. In a letter dated last Thursday, FERC told Rover they haven’t lived up to their promises to restore areas they promised to restore by June 30th. The FERC letter (full copy below) says (1) Rover must provide a detailed list, chapter and verse, of why it has not lived up to its promises, and (2) informs Rover that until it does live up to its promises, they won’t be authorizing any more laterals to go online. FERC is playing hardball–far from the “industry rubber stamp” that antis attempt to portray FERC as…
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    Mountain Valley Pipe Voluntarily Shuts Down Construction in Va.

    MDN told you last week that Sierra Club lawyers are attempting to bamboozle a court into halting construction of the Mountain Valley Pipeline (MVP) in Virginia, as they were able to do in West Virginia (see Enviro Radicals Target MVP in Va. Following WV Court “Win”). Turns out the enviro-nuts don’t have to worry–at least for now. Mother Nature has done it for them, has halted all construction of MVP in the Old Dominion. Following heavy rains that have resulted in erosion and runoff from the pathway along which the pipeline will be laid, MVP has voluntarily decided to, for the time being, halt all construction in Virginia. When will construction resume? According to an MVP spokesman: “There is no specific timeline for the suspension, however, as soon as upgrades are completed and approved by DEQ, construction can resume.” Let’s hope it’s sooner rather than later…
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    60-Mile Pipeline from NW PA to NE OH Gets Favorable FERC Review

    Click for larger version

    Last October MDN brought you details about the proposed $86 million Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. Both the U.S. Army Corps of Engineers and the Pennsylvania Fish and Boat Commission are “cooperating agencies” and part of the environmental assessment (EA) review process, along with the lead agency, the Federal Energy Regulatory Commission (FERC). Good news: FERC issued the EA on Friday (full copy below), and the project passes with flying colors. While this is not a final stamp of approval (which is due by Sept. 27th), when FERC issues a favorable EA, it’s almost certain they will approve the project…
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    Another ME2 Mud Spill at Snitz Creek, Another Hysterical Reaction

    Sunoco Logistics Partners 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. Sunoco spilled five gallons of nontoxic drilling mud. This is the third time it’s happened in June, and the sixth time it’s happened at the Snitz Creek location in total. Predictably, antis were hysterical. Hysterical, not as in funny, but hysterical as an insane, out-of-control overreaction. Theatrics. Drama. That kind of hysterical. The reaction from antis is organized by “green” groups–in particular by one person from a local green group calling itself Concerned Citizens of Lebanon County. Five gallons of nontoxic drilling mud (the same stuff used to make kitty litter and lipstick) is, quite literally, NOTHING. We’ve seen 5 gallon spills of very toxic gasoline at the local gas station that went unnoticed. Gasoline is far more “toxic” to the environment than what’s happening at Snitz Creek. Why do drilling mud spills keep happening at the Snitz Creek location? Obviously the ground in that area is porous. Every time Sunoco drills under the creek another few feet, drilling mud pops out and drilling activity gets shut down, yet again. This is a recurring situation. We don’t know what the solution is, but not building the pipeline (which is 99% done) is not one of the options. Hopefully Sunoco can find a solution quickly so we can put this ongoing, manufactured, and tiresome drama queen theatrics behind us…
    Read More “Another ME2 Mud Spill at Snitz Creek, Another Hysterical Reaction”

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    Sad News: FERC’s Rob Powelson (from PA) Resigns Effective August

    FERC Commissioner Rob Powelson

    Robert Powelson, a Republican member of the Federal Energy Regulatory Commission (FERC) from the great state of Pennsylvania, appointed by President Trump, announced yesterday he is resigning effective in mid-August. He’s not even been in office a full year. This is devastatingly bad news in our book, for a couple of reasons. Coming from PA and previously serving on the state Public Utility Commission, Powelson has been a champion for natural gas and the pipelines that flow it–especially Marcellus/Utica projects. He’s been a superb FERC commissioner. So why is Powelson leaving? To become president and CEO of the National Association of Water Companies. No offense to that association (which we’d never heard of before), but this is a step down. The speculation whirling around is that Powelson is leaving FERC over differences of opinion with Team Trump and their ill-advised mission to prop up coal and nuclear energy, at the expense of natural gas. Apparently Powelson has had enough and wants out. It’s not only sad he’s leaving, it could be consequential in the near-term. Why? Because the Commission will be split 2-2 Republicans and Democrats, and the Dems have shown they’ve sold out to their radical elements, willing to vote against new pipeline projects in the name of man-made global warming, contrary to policy and stated regulation (see FERC Becomes Political as Seen in Rehearing Vote on NY Project). The politics in the Dem party is toxic and radical, and has now spread to FERC. Powelson’s departure at this time is not good news for our industry. We hope Trump can get a new FERC member appointed to replace Powelson asap–but don’t hold your breath. The swamp resists change at any cost…
    Read More “Sad News: FERC’s Rob Powelson (from PA) Resigns Effective August”

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    M-U Production May “Flounder” This Summer from Rover Pipe Delays

    Platts is reporting U.S. natural gas production hit a new, all-time high last week, mainly due to a surge in natgas production in the Texas Permian. Although Marcellus/Utica production “pulled back modestly” this past week, if you look at the entire month of June, we hit new all-time highs for production yet again. However, it wasn’t just the good news of new record production that caught our attention in the Platts update, but this statement: “Looking ahead, it’s possible that Northeast production growth could flounder this summer, thanks to continued in-service /delays on Rover Pipeline’s upstream supply laterals.” Rover is desperately trying to get FERC to grant permission to open the Majorsville and Burgettstown laterals, as we pointed out yesterday (see Rover Pressuring FERC to Approve Final 2 Laterals ASAP). So if those laterals were to go into service immediately, wouldn’t that mean production will spike up right away with no “floundering”? Not necessarily. Here’s why…
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    Pipeline Cos. to D.C. – We Need Help to Beat Back Green Groups

    The World Gas Conference, held every three years in different locations around the globe, was held this week in Washington, D.C.–the first time back in the U.S. in 30 years. We’ve reported various stories from that event. Here’s another such story that caught our interest. Pipeline companies, specifically TransCanada and Enbridge (both based in Canada but with huge pipeline networks in the U.S.) told conference attendees that the pipeline industry needs help from Washington–from either the Federal Energy Regulatory Commission, or Congress, or both to fight back against the increasing efforts of Big Green groups opposed to fossil fuels. Fight back how? By adopting new regulations (FERC) or new laws (Congress) that favor pipeline infrastructure. Our interpretation of what they said: It’s time to stop allowing a small group of wacko radicals block energy progress in this country…
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    Rick Perry Tells Cuomo – You’ll Face “Reckoning” for Blocking NatGas

    Yesterday, Dept. of Energy Secretary Rick Perry leveled a warning to Andrew Cuomo and the leaders of other states blocking natural gas pipelines: You will face a “real reckoning” of high energy costs and vulnerabilities (i.e. blackouts) because of your actions. Perry stopped short of saying Washington and the Trump Administration would use Executive Orders to unblock some of the blocked pipeline projects (which is a disappointment). But Perry alluded to that possibility when he said, “We have to have conversation as a country, is that a national security issue that outweighs the political concerns in Albany, N.Y.?” Cuomo should be concerned. We’re holding out hope that Trump will issue an Executive Order for both the Constitution Pipeline and Northern Access Pipeline projects, overruling Cuomo. It’s refreshing to see our side take the fight to the irrational radicals who oppose fossil fuel energy…
    Read More “Rick Perry Tells Cuomo – You’ll Face “Reckoning” for Blocking NatGas”

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    Rover Pressuring FERC to Approve Final 2 Laterals ASAP

    Click for larger version

    In a respectful, but strongly worded letter to the Federal Energy Regulatory Commission (FERC), Energy Transfer Partners’ Rover Pipeline asks FERC to (our words) get off its rear-end and approve the Burgettstown and Majorsville laterals. The two laterals, or off-shoots of the pipeline system, both reach into western Pennsylvania and are (from what we can tell) the final two pieces of the Rover pipeline that are not yet online. Rover asked FERC to approve the two laterals, along with other portions of the pipeline, by June 1st, in a letter dated May 24th. FERC did approve some items on the list, but not the two laterals (see M-U Gas Now Travels to Dawn Hub in Canada via Rover Pipeline). In a June 21 letter (read it below) Rover then asked FERC to approve the two laterals by June 25, this past Monday. That date came and went with no approvals. Rover said in its letter: “significant volumes of natural gas have been unable to flow on pipeline facilities that have been completed for nearly a month.” You can feel the frustration when reading the letter. So what, exactly, is the holdup anyway?…
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    NY Asks FERC to Hassle AIM Pipeline, Restrict Flows

    Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system designed to carry 342 million cubic feet of natural gas per day to New England states that badly need the gas. On March 3, 2015 the Federal Energy Regulatory Commission (FERC) issued their final approval for the project, allowing it to go forward. Construction began in 2015 and, following extreme opposition from New York State over a small portion of the project, it finally went online in in 2016. New York’s radical, anti-drilling governor, Andy Cuomo, tried to stop the Algonquin using the flimsy excuse that some of the drilling for the pipeline would happen a half mile from a nuclear power plant–a plant that’s shutting down anyway (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). A few weeks after Cuomo requested FERC shut it down, they told him “no”–which was the cue for Big Green groups to file an appeal with the liberal District of Columbia Court of Appeals (see Radical Enviro Groups File Appeal to Stop AIM Pipeline in NY/CT). Didn’t work. New York State’s two radically leftist Democrat Senators, Chuck Schumer and Kirsten Gillibrand, the Senator nobody knows about and nobody cares about, tried to stop it too (see NY’s 2 Radical Senators Call for Halt in Building Algonquin Pipeline). Didn’t work. Now that the pipeline expansion has been up and running safely for more than a year, you’d think they would give up. Nope. Cuomo previously ordered a “safety analysis” of the project, back in 2016. That report was just released (executive summary embedded below) and four state agencies, all under the executive branch umbrella (i.e., under Cuomo’s thumb), jointly wrote a letter to FERC asking FERC to further hassle the AIM project by restricting flows along it and shutting it down when work to decommission the nearby nuke plant begins…
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    Enviro Radicals Target MVP in Va. Following WV Court “Win”

    The lawyers that infest the Sierra Club are still celebrating a temporary court victory last week that essentially stops construction of the Mountain Valley Pipeline (MVP) in West Virginia (see Sierra Club Succeeds in Delaying MVP Project in WV via Court Order). Their strategy was/is to bamboozle a court into stopping construction at stream crossings (hundreds of them) by using a technical loophole that MVP can’t complete required work at four of the crossings within the stated 72 hours, therefore the court needs to reassess the umbrella permit issued for all crossings. So the court is doing that, temporarily suspending work at all 591 streams MVP plans to cross in WV. The Sierra Clubbers think that because they won that temporary court victory in WV, maybe they can get lightening to strike twice, convincing the court to pull the permit in Virginia too…
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    PA DEP Notifies Shell of “Technical Deficiencies” with Ethane Pipe

    Shell delivered some good news at last week’s Northeast U.S. Petrochemical conference in Pittsburgh: The Falcon ethane pipeline will get built next year (see Shell Says Falcon Ethane Pipeline to Get Built in 2019). The pipeline won’t actually flow ethane to the Shell cracker in Monaca until 2020 at the earliest, because the cracker plant itself won’t go online until 2020 at the earliest. The 97-mile consists of “two legs,” with about half of the pipeline located in PA, the other half in OH. The Pennsylvania Dept. of Environmental Protection (DEP) conducted three public hearings on the project earlier this year, in preparation for issuing permits. Antis came out in force and behaved badly, as they typically do (see More of the Same at Final DEP Hearing for Shell Ethane Pipeline). No matter. The pipeline will get built. But not without jumping some hurdles first. On June 1, the DEP issued three letters identifying what it calls “serious technical deficiencies” in Shell’s pipeline plan, for townships in three different counties along the pipeline’s PA route. Shell maintains this type of notification is “common” in the permitting process, and is committed to working with the DEP to address any issues of concern…
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    First Pipeline “Casualty” of Trump Tax Cut Dissolves MLP Jun 29

    In March, MDN brought you the news that the Federal Energy Regulatory Commission (FERC) had taken “significant action” to address the Trump tax cut legislation enacted last December (see FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut). FERC wants to be sure the tax cuts coming to electric companies and pipeline companies are passed on to consumers and pipeline shippers. The agency proposed new solutions to eliminate “tax loopholes” for natural gas pipelines. Closing these so-called loopholes will eliminate certain tax benefits for MLPs–master limited partnerships. Many pipeline companies (most) are organized as MLPs, which allows tax advantages to flow to investors. With certain tax benefits for MLP unitholders on the chopping block, all of a sudden some MLPs don’t look like such a hot investment anymore, at least on paper. Some analysts have speculated this may be the beginning of the end for MLPs. A few years ago Kinder Morgan got rid of all it’s MLP subsidiaries, combining them all into a single “C” corporation. In March, Tallgrass Energy, builder/operator of the mighty Rockies Express (REX) pipeline which flows Marcellus/Utica gas, announced it would do the same (see Tallgrass Energy Eliminating MLP – First “Casualty” of Tax Cut?). Yesterday Tallgrass MLP unitholders voted “overwhelmingly” to dissolve the MLP and merge it in with the corporation, which will happen later this week…
    Read More “First Pipeline “Casualty” of Trump Tax Cut Dissolves MLP Jun 29″

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    Constitution Pipe Asks FERC for Speedy Rehearing, 2020 Deadline

    Seems like a week doesn’t go by that MDN isn’t asked (by someone from Pennsylvania), “Is there any hope of building the Constitution Pipeline through New York?” Our standard response is this: The only way it gets built is (a) NY elects a new governor favorable to the industry–about a 1% chance of that happening, (b) President Trump issues an Executive Order overriding Cuomo’s blockade of Constitution (and other pipeline projects)–maybe a 10% chance of that happening, or (c) the Federal Energy Regulatory Commission (FERC) reconsiders a decision to not overrule NY’s move to block the project–maybe a 15% chance. The U.S. Supreme Court in April refused to consider the Constitution Pipeline case, closing that door (see Supreme Court Rejects Constitution Pipe Request to Overrule NY). In January of this year, FERC turned down Constitution’s request to overrule NY (see Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC). But then Constitution (i.e. Williams) asked FERC to reconsider their ruling, to “rehear” the case as it’s called, in Feburary (see Constitution Pipe Files for FERC Rehearing, Then Back to Court). In March, FERC gave themselves a little more time to think about rehearing the decision, but since that time, the agency has been silent. Yesterday Williams/Constitution filed a request with FERC asking them to urgently, speedily, quick-like-a-bunny, pretty-please with a cherry on top hurry up and reconsider/rehear their earlier decision, this time hopefully overruling NY. Could it happen? Sure, it could. Will it? Doubtful, but hey, hope springs eternal! Williams/Constitution also filed an official request yesterday with FERC to extend the deadline to build the Constitution project–from this year to 2020. If FERC grants the extension, then maybe there is a glimmer of hope that FERC will change its mind, or that FERC somehow sees a way that Constitution can still get built…
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