Williams Northeast Supply Enhancement Pipe Gets Favorable DEIS
In March 2017 (one year ago), Williams filed a full, official application for the Northeast Supply Enhancement project (see Williams Files with FERC to Expand Transco Pipeline to NYC, NE). The project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, 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, 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. While the project is sure to encounter issues with the New York State Dept. of Environmental Conservation (much of the Raritan Bay pipeline is located in New York territorial waters), the good news is that the Federal Energy Regulatory Commission has just issued a favorable draft environment impact statement (DEIS). A favorable DEIS almost always means the project will receive a final approval from FERC…
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The Adorers of the Blood of Christ, a group of nuns in Lancaster County, PA, simply can’t stay away from sacrificing Christ on the alter of politics. The Sisters didn’t want the Atlantic Sunrise Pipeline project passing through their property. They own several buildings (one of them an old folks home heated with natural gas) on the very same property. The pipeline was due to run through a nearby field owned by the Sisters that they lease to a local farmer who grows corn on it. The Sisters took up with radical anti-fossil fuelers from Lancaster Against Pipelines to protest the project, putting a few wooden park benches and a flower tressle in the middle of the corn field, calling it a “chapel” (see 
In August 2016, Millennium Pipeline, which stretches from Corning, NY to just outside New York City, filed an application for what it calls its Eastern System Upgrade (see 
If the so-called “tree sitters” in Jefferson National Forest who are trying to block tree cutting for the Mountain Valley Pipeline (MVP) get themselves hurt, Monroe County Circuit Court Judge Robert Irons will be the one to blame. Well actually, the protesters can blame themselves (they’re idiots), but Irons is certainly complicit. On Tuesday Judge Irons refused to grant MVP a court order to remove the radical protesters. Apparently they are 7 feet outside of the right of way zone for tree felling. Have you ever cut a big tree down? Trees don’t care if they fall 7 feet this way or 7 feet that way when they fall. MVP wants to ensure the protesters don’t get hurt, and wants them gone before they cut trees near them. But because the radicals technically, according to the judge, are not in the actual right of way, they can stay up the trees where they’ve been for the past 25+ days. There are two suspended tree houses (platforms), held in the trees with ropes. Up to seven people have been living in the two magic tree houses, eating, breathing and defecating up in the trees (harming the environment they profess to be protecting). MVP technically has a deadline of March 31 to fell trees along the path of the pipeline. We suspect MVP has a Plan B for this segment where the loons have perched themselves up a tree. We predict sitting up a tree will get old sooner or later–and MVP can wait them out…
Two Pennsylvania Senate committees–the Environmental Resources and Energy and the Consumer Protection and Professional Licensure committees–held a joint hearing on Tuesday supposedly on the topic of “pipeline safety”–but instead the hearing turned into a bash Sunoco Logisitcs and the Mariner East 2 (ME2) Pipeline hearing. A variety of witnesses testified. Unfortunately, State Sen. Gene Yaw (RINO from Lycoming County), chairman of the Environmental Resources and Energy Committee, didn’t invite Sunoco to testify, so it was a one-way bash fest. Sunoco was not allowed to respond. Thanks Gene. It wasn’t a court hearing, so we can’t call it a kangaroo court. Perhaps we can call it a kangaroo Senate hearing? While the discourse in the hearing was mostly civil (although it was nonstop bashing of Sunoco), a group of rabble rousers nearby was not. A group of 10-15 (depending on the news source) marched on Gov. Tom Wolf’s office. They were there to serve Wolf with a mock “Notice of Probable Violation and Summons,” which the malcontents say requires Wolf to appear in Chester County before families impacted by construction of ME2. The small mob was met with locked doors and Capitol Police who turned them away…
Sunoco Logistics Partners (aka Energy Transfer Parnters) has had its challenges in constructing the twin Mariner East 2 (ME2) pipelines across Pennsylvania. Earlier this month MDN told you that underground horizontal directional drilling (HDD) work in Chester County had led to a third sinkhole developing in that area (see 
There’s a number of threads to the ongoing saga of Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to move Marcellus gas into New York State and from there, into New England. The Andrew Cuomo-corrupted NY Dept. of Environmental Conservation (DEC) refused to grant the pipeline necessary federal stream crossing permits, blocking construction, in April 2016 (see 
When was the last time you read a news story about 50 people gathering to pray…*against* an infrastructure project? Ever see or read a news story about people gathered to pray against a new highway being built? What about people who pray against construction of a new bridge? Or maybe those who pray against a new high-tension electric line coming through the area? We’ve never heard of or read any of those kinds of stories. Ever. So why does Virginia Public Radio feel compelled to publish a story about 50 people gathering to pray against the Mountain Valley Pipeline? What about the 5,000 people who live in the same area who are just fine with the pipeline? Do you think they might deserve a story too?…
In January 2017 the Federal Energy Regulatory Commission (FERC) granted final approval for the $452 million Atlantic Bridge expansion project (see 
Last Thursday the Federal Energy Regulatory Commission (FERC) held an open meeting during which the commissioners “took significant action” to address the Trump tax cut legislation enacted last December. FERC wants to be sure the tax cuts coming to electric companies and pipeline companies are passed on to consumers and pipeline shippers. We are still trying to make sense of it all and frankly, we still don’t fully understand it. What we can tell you about what FERC did last week is this: 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. A good 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 (most?) MLPs don’t look like such a hot investment anymore, at least on paper. Which has caused pipeline companies, many of them with operations in the Marcellus/Utica, to issue a flurry of public announcements to say “FERC’s actions won’t impact us all that much.” The stock market certainly didn’t share that sentiment with shares (called “units”) in MLPs taking a hit since FERC’s announcement. Below is a collection of stories–bits of stories–that we’ve pieced together in an attempt to shed light on what is happening, and how it may change the pipeline business in the future…
In early March MDN reported that Sunoco Logistics’ underground horizontal drilling (HDD) work on its massive Mariner East 2 NGL pipeline near Philadelphia had resulted in several sinkholes developing (see 
We have to confess this story is a bit complex to understand. We will take a stab at making the complex understandable. Blue Racer Midstream has a subsidiary called Blue Racer NGL Pipelines LLC. The subsidiary operates the G-150 pipeline system, which provides batched propane and butane service. G-150 currently, located in West Virginia, connects a Natrium, WV processing plant to the TE Products Pipeline Co. (TEPPCO). The G-150 pipeline will also have a connection to the Mariner East 2 Pipeline when it goes into service, theoretically in June of this year. Currently the G-150 is flowing about 6,300 barrels per day of product through it–only 20% of its capacity. When the connection with ME2 is up and running, Blue Racer says it can handle 30,000 bbl/d through the G-150. However, Blue Racer itself signed up for most of the capacity (27,000 bbl/d). Blue Racer recently asked the Federal Energy Regulatory Commission (FERC) to allow it to have two different rate structures–a lower rate for “committed” shippers (Blue Racer itself with its 27,000 bbl/d) and a higher rate for uncommitted shippers. FERC rejected the request pointing out that existing shippers with contracts–namely Chesapeake Energy–would be left out in the cold in favor of Blue Racer moving its own volumes at lower prices. Yes, it’s complicated. Bottom line, Blue Racer can’t do what it wants and has to go back to the drawing board…
Dominion Energy’s $6.5 billion Atlantic Coast Pipeline (running from West Virginia through Virginia and into North Carolina) is supposed to get built this year. ACP began to cut trees along the pipeline’s path in late January (see