Pipelines

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    Energy Transfer Wants to Build New Compressor Station in SWPA

    New Sewickley Township (Beaver County), PA

    In June 2015, MDN reported on an important new project in the Marcellus/Utica being built by Energy Transfer Partners (see ETP Announces $1.5B Revolution Pipeline/Plant Project in SWPA). The project, dubbed the Revolution Project, includes a 100-mile gathering pipeline system in Butler County, PA (lots of wet gas to move), along with a new cryogenic gas processing plant to be constructed “in western Pennsylvania”–which we later discovered is in Washington County, PA. The original plan was to have the cryogenic processing plant (in Washington County) up and running by 2Q17. That didn’t happen. We spotted a story from September last year which said it was due to go online “later this year”–meaning by the end of 2017. Is it online now? We don’t know/couldn’t find out. Possibly. What we do know is that the cryogenic plant will separate the wet gas into methane and NGLs, and that the NGLs will hitch a ride on the Mariner East 2 Pipeline all the way to Marcus Hook. That’s the plan. The pipeline itself that gathers and sends wet gas to the cryogenic processing plant has one compressor station to compress the gas and send it on its way. However, Energy Transfer wants to build a second compressor station to assist. And they want to build it now, as in right now, before summer, in New Sewickley Township (Beaver County)…
    Read More “Energy Transfer Wants to Build New Compressor Station in SWPA”

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    PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline

    Once again, in what appears to be a pattern, the Pennsylvania State Dept. of Environmental Protection (DEP) is caving to pressure from virulent anti-fossil fuelers. This time in regard to Shell’s proposed Falcon Ethane Pipeline project. Shell is working on an ethane “pipeline system” with two “legs” to feed the mighty cracker plant being built in Monaca, Beaver County (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Last October Shell filed an application with the PA DEP for the PA portions of the pipeline, some 60 miles of the total system (see Shell Files PA Application for Ethane Pipe to Feed Cracker Plant). The DEP advertised an official comment period for the project on Jan. 20, giving interested parties until Feb. 20 to file their comments–an entire month (see PA DEP Invites Public Comment on Shell 60-Mile Ethane Pipeline). However, one month isn’t enough time for anti-drillers to marshal the faithful to try and sink the project. FracTracker Alliance, an anti-fossil fuel organization, colluded with other groups to put the word out to flood the DEP with demands to keep the comment period open. The DEP folded, like a flimsy house of cards, and has now extended the comment period to April 17th along with three public hearings (circus freak shows), which will give the FracTracker faithful time to mount publicity and legal offensives to try and stop the project. If the pipeline doesn’t happen, work at the cracker plant stops. Which, of course, isn’t going to happen. But it illustrates the true aim of FracTracker and other virulent (way, way, WAY outside the mainstream) anti-fossil fuel groups…
    Read More “PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline”

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    NJDEP Hail Mary – Pleads with FERC to Stop PennEast Pipeline

    The now fully politicized New Jersey Dept. of Environmental Protection (NJDEP), along with the Delaware and Raritan Canal Commission, filed a joint request with the Federal Energy Regulatory Commission (FERC) last Friday asking FERC to reconsider and rescind its approval of the PennEast Pipeline project, which FERC granted just last month (see FERC Grants Final Approval for PennEast Pipe – Real Battle Begins). PennEast is a $1 billion, 120-mile primarily 36-inch natural gas pipeline that will stretch from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The pipeline is an important conduit to move gas from the prolific gas fields of northeastern PA to markets in southeast PA and New Jersey. From the beginning of the project there have been a collection of so-called environmental organizations opposing it–including THE Delaware Riverkeeper, NJ Sierra Club, and the NJ Conservation Foundation. All radical groups. Unfortunately NJ elected an authoritarian Democrat as governor–Phil Murphy–who pledged to try and stop the project (see Dem Candidate for NJ Gov Opposes PennEast, After He $upported It). Murphy (a tool of Big Green) has politicized the NJDEP and has caused them to dance to his radical tune. In addition to receiving a formal request by NJDEP, FERC also received the same request from the nutty Sierra Club (no surprise there), and also a far-left Democrat State Senator, who is using the request as a fundraiser for his next campaign…
    Read More “NJDEP Hail Mary – Pleads with FERC to Stop PennEast Pipeline”

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    PA Town Sues Sunoco for ME2 Pipe Construction “Too Close” to Homes

    We understand why folks in Uwchlan Township (Chester County, PA) may be upset with Sunoco Logistics and the Mariner East 2 NGL pipeline that’s crossing through their area. Last summer drilling work for the pipeline in Uwchlan created cloudy well water for some residents (see ME2 Pipe Work in Chester County Creates Water Well Issue for Some). The PA Dept. of Environmental Protection (DEP) recently allowed Sunoco to resume work in the township (and elsewhere)–after Sunoco paid a $12.6 million fine (see PA DEP Allows ME2 Underground Drilling to Resume in Chester County). So yeah, residents have some concerns. However, they’re going about venting their frustration in the wrong way. Last week supervisors in Uwchlan Township voted unanimously to enforce an ordinance that requires pipelines like ME2 to be set back 1,000 feet from buildings. In some cases, ME2 is being built within 100 feet of buildings. While we appreciate Uwchlan’s concerns, the simple fact is, local municipal ordinances DO NOT override state regulations. In this case, it is the state DEP and Public Utility Commission that regulate the project. It is state law that trumps local ordinances–as it should be. By all means, wheel and deal and pressure and try to get Sunoco to change the route–but you cannot take the law into your own hands, which is exactly what Uwchlan is attempting to do…
    Read More “PA Town Sues Sunoco for ME2 Pipe Construction “Too Close” to Homes”

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    Williams 17/18 Update: Full Atlantic Sunrise Startup Slightly Delayed

    Last week Williams, the largest pipeline/midstream company operating in the Marcellus/Utica region, released its fourth quarter and full year 2017 update. While the company lost $342 million in 4Q17 due to “non-cash charges related to Tax Cuts and Jobs Act of 2017,” the company made a profit of $871 million for the year, up 100% from making $431 million in 2016. The company brought five big projects online in 2017–Gulf Trace, Hillabee Phase 1, Dalton, New York Bay and Virginia Southside II–which added an extra 2.8 billion cubic feet per day of capacity and led to record-breaking volumes of gas flowing along the Transco pipeline (see Williams Marcellus Buildout Leads to Record Transco Pipe Volumes). However, it was the Atlantic Sunrise Pipeline project that stole most of the limelight in last week’s update. Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County, PA. The pipeline will be ready in July, on schedule. However, an associated compressor station will take “a few months longer” than July, meaning the pipeline won’t be online until early fall sometime (not on schedule). Below is last week’s Williams update, a copy of the latest PowerPoint presentation, and excerpts from the analyst phone call…

    2/22/18 Update: Our original thought was that with a delay in the compressor station starting up, the entire pipeline would be delayed in starting up. Not true! We reached out to Williams for an explanation for how the pipeline could stay on schedule without the compressor going online initially. We got this statement back: “The gas that is placed into the system by producers enters the pipeline at very high pressures. In addition, we have existing Transco compression near the terminus of the line that is pulling the gas through the line. This push/pull dynamic is what allows gas to flow through the pipe prior to the full commissioning of the project’s compression.” So there you have it. While the full startup will be slightly delayed, the pipeline will still flow much of the volume intended–on schedule in July.
    Read More “Williams 17/18 Update: Full Atlantic Sunrise Startup Slightly Delayed”

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    TransCanada Spending $1.9B to Bring More Canadian Gas to Northeast

    TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal in 2016 to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada from the NEXUS and Rover pipelines (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. Following a couple of open seasons and stiff regulatory hurdles, the plan was adopted and went into service last November (see TransCanada Pipe Begins Lowball Shipping to Compete with Marc/Utica). Last week TransCanada announced a $1.9 billion plan to expand its Western Canadian pipeline system in a bid to gather up and send even more Western Canadian gas to the East Coast–to compete with the Marcellus/Utica…
    Read More “TransCanada Spending $1.9B to Bring More Canadian Gas to Northeast”

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    5 Big Green Groups File Another Lawsuit to Stop Mountain Valley Pipe

    This simply must stop. We MUST begin to countersue (monthly/weekly/daily if necessary) the Big Green radical groups that continue to bring a flood of lawsuits against legally permitted pipeline projects. We must! It is the only way to even the playing field. Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–is one of the targets of Big Green. MVP has had so many lawsuits filed against it, we can’t keep track of them all. Two recent examples. (1) Five radical green groups, including the Sierra Club, Appalachian Voices, Chesapeake Climate Action Network, West Virginia Rivers Coalition, and Wild Virginia, sued the Federal Energy Regulatory Commission (FERC) in federal court in early January over FERC’s approval of the project (see 5 Radical Green Groups Sue to Stop Mountain Valley Pipeline). A few weeks later, the radical Chesapeake Bay Foundation and the Southern Environmental Law Center, on behalf of more than a dozen environmental groups (the including the ones previously listed) sued the Virginia Water Control Board for approving MVP’s application for stream crossing permits (see Big Green Files Lawsuit Against VA Regulators for Approving Pipe). And now, the same lawyers involved in those other cases are doing it again. On Wednesday, five Big Green groups, including the Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices, and the Chesapeake Climate Action Network sued the U.S. Army Corps of Engineers in federal court over the Corps’ approval of the project. Enough! Start to sue back! Here’s the details (and a copy of) the latest lawsuit by Big Green radicals…
    Read More “5 Big Green Groups File Another Lawsuit to Stop Mountain Valley Pipe”

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    Green Antis Try to Reverse City’s $7.5M Deal to Allow NEXUS Pipe

    MDN told you last week that anti officials who lead the City of Green, OH (Summit County), had finally faced the reality that NEXUS Pipeline–a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada–will come through their vicinity (see Antis of Green, OH Finally Face Reality – Will Allow NEXUS Pipe). Green previously hired a high-priced Cleveland law firm to try and scuttle the NEXUS project (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). In the end, everyone has their price. For Green, the price is $7.5 million and 20 acres of land that sit next to an existing city park. While Green antis in city government hate the idea of the pipeline getting built at all (especially Green’s anti-pipeline mayor), the writing is on the wall. They will lose and they know it. To save face, the mayor negotiated a deal with NEXUS that city council voted to accept. However, the mayor and city council’s actions don’t sit well with some of the more radical elements in Green. The rads have since launched a campaign to force the city to accept a vote on whether or not to settle with NEXUS. The city says the signed settlement from last week is an administrative action, not subject to a popular vote. The rads say otherwise. It’s shaping up to be a legal battle royale in Green–antis against antis. Grab the popcorn!…
    Read More “Green Antis Try to Reverse City’s $7.5M Deal to Allow NEXUS Pipe”

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    PA DEP Allows ME2 Underground Drilling to Resume in Chester County

    In what can only be considered a government shakedown, Sunoco Logistics Partners agreed last week to pay a massive (historically high) $12.6 million fine to the PA Dept. of Environmental Protection (DEP) for “permit violations related to the construction of the Mariner East 2 pipeline project” (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction). So we’re not surprised to learn that a few days later the DEP has magnanimously allowed Sunoco Logistics Partners to resume drilling work in Chester County for ME2–work that had been on hold since last summer (see ME2 Pipe Work in Chester County Creates Water Well Issue for Some). As we reported last year, the water wells for a dozen households in Chester County became cloudy–or lost pressure–after underground horizontal directional drilling (HDD) by Sunoco attempting to install pipes underground in places where digging trenches will not work. Sunoco paid for five families to temporarily stay in local hotels for several nights. Sunoco also provided bottled water for all of the affected families. The working theory is that bentonite clay (i.e. drilling mud) is the source of the cloudiness. Fortunately, bentonite is non-toxic and used to manufacture many products, including toothpaste and kitty litter. Because of the episode in Chester and several locations, the DEP stopped HDD work for the project. Sunoco later cut a deal to continue the work (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Then, all work everywhere for the ME2 project was stopped by the DEP in early January. That is, it was stopped until Sunoco paid the DEP $12.6 million for permission to restart construction. So yes, $12.6 million ought to buy the right to restart HDD drilling in Chester County, as it just has, although the DEP is still holding the threat of “further penalties” over Sunoco’s head as a way of encouraging them to avoid any further drilling mud spills…
    Read More “PA DEP Allows ME2 Underground Drilling to Resume in Chester County”

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    Rover Pipeline’s SWPA Burgettstown Lateral Ready for Startup

    Click map for larger version

    On Tuesday, Rover Pipeline (Energy Transfer Partners) sent an official request to the Federal Energy Regulatory Commission (FERC) asking for permission to begin service on one of the remaining legs of the pipeline not yet up and running as part of Phase 1 development. Rover wants to begin service on the Burgettstown Lateral by Feb. 26. The Burgettstown Lateral (see the map below) extends from Burgettstown (Washington County), PA through Hancock County, WV and into eastern Ohio, connecting to the main Rover Pipeline in Carroll County. The Burgettstown Lateral is 51.3 miles long and includes a compressor station in/near Burgettstown to push the gas along the entire length of the lateral. Rover still maintains they will have the entire Rover Pipeline network up and running by the end of March. There are still some areas in Ohio where they are working (drilling for a second pipeline under the Tuscarawas River), however, most of the work remaining to be done is in Michigan–Phase 2 of the project. When it’s all done, up and running, Rover will flow 3.25 billion cubic feet per day of Marcellus/Utica gas to the Midwest, Gulf Coast and Canada. Below is Rover’s request to “start me up” for the Burgettstown Lateral, along with a map of the lateral…
    Read More “Rover Pipeline’s SWPA Burgettstown Lateral Ready for Startup”

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    Antis Pressure Maryland Gov. Hogan to Reject Pipeline Under Potomac

    Maryland Gov. Larry Hogan

    In April 2017, MDN brought you the news that Columbia Pipeline (now owned by TransCanada) had filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in the Eastern Panhandle of West Virginia with the Columbia Gas Pipeline in Pennsylvania (see New 3.5 Mile Pipeline Project to Drill Under the Potomac River). That tiny section of pipeline is part of the larger Eastern Panhandle Expansion project–a project to deliver natural gas via local distribution channels (local utility Mountaineer Gas) to a new industrial facility in Berkeley County, WV, and to provide gas to other local businesses and residents in the Tri-State area. Anti fossil fuel nutters have been on a rampage to stop the pipeline from going under the Potomac since last summer (see Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement). To hear them talk, you’d think this is the first time a pipeline has been drilled under the Potomac River. However, TransCanada, via its Columbia Pipeline subsidiary, has already built and operates 12 other pipelines that go under the Potomac River–just in the State of Maryland! Have you ever heard a peep about those pipelines and an environmental holocaust they’ve created? No. Why? Because putting a pipeline under a river is no big deal. It doesn’t harm the environment. Yet that’s what antis are claiming and will claim in a protest march today, aimed at pressuring the weak-willed Republican Governor of Maryland, Larry Hogan, into blocking this tiny, 3.5 mile project…
    Read More “Antis Pressure Maryland Gov. Hogan to Reject Pipeline Under Potomac”

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    Kentucky Antis File Lawsuit to Stop TGP NGL Pipe Reversal

    Kentucky antis have gone to court to try and block a plan by Kinder Morgan to convert a portion of the Tennessee Gas Pipeline that flows natural gas from the Gulf Coast to the northeast, to reverse the pipeline and flow natural gas liquids from the Marcellus/Utica region to the Gulf. Part of the 964-mile project runs through Kentucky (see KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South). The first step in the reversal process was approved by the Federal Energy Regulatory Commission last October (see FERC Advances Plan to Reverse Part of TGP to Haul M-U NGLs to Gulf). Antis in Kentucky got their bluegrass knickers in a twist over FERC’s action. They filed a request for “rehearing” of FERC’s decision, which is the first step in a process that typically ends up in court. First the “aggrieved party” (antis are in a perpetual state of being aggrieved) must request a rehearing. If FERC denies the rehearing request, antis (Big Green groups with deep pockets representing them) then file a lawsuit in federal Appeals Court to try and stop FERC from continuing to approve the project. Normally FERC has 30 days to decide on a rehearing, however, they have a little tactic they call a “tolling order” which allows them to extend the amount of time to make a rehearing decision–indefinitely. FERC pulled out the tolling order card and played it with the TGP project last November (see FERC Frustrates Kentucky Radicals Seeking to Stop TGP Pipe Reversal). The antis aren’t waiting. They’ve just filed a lawsuit challenging the FERC tolling order. Here’s the latest from the enviro nuts in the Bluegrass State…
    Read More “Kentucky Antis File Lawsuit to Stop TGP NGL Pipe Reversal”

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    More on Unintended Consequences for Pipelines from Trump Tax Cut

    As we reported last week, President Trump’s marvelous tax cut has had some unintended (negative) consequences for pipeline companies (see Trump Tax Cut has Unintended Consequences for Pipeline Projects). Trade groups and some states are pressuring the Federal Energy Regulatory Commission (FERC) to force pipeline companies to cut the rates they charge customers in light of the Trump tax cut. The corporate tax rate is going from 35% down to 21%. When pipelines file rate cases for how much they will charge customers to flow gas (or oil or whatever else) through the pipeline, part of the calculation for what FERC allows them to charge is based on profitability. Since pipeline companies will now be a whole lot more profitable (tax payments going down), the customers using those pipelines want the rates recalculated to reflect the savings. In other words, they want part of the tax savings too. But the pipeline companies say they have duly signed contracts in place. You can’t just rework a single portion of those contracts with the sweep of a pen. What about other components in the contract that are used in calculating prices? In some (many?) cases pipeline companies have borne *increased* costs that are not passed along to customers. If the customers (mainly utility companies) want FERC to adjust rates now, based on the Trump tax cut, they may not like how those rates get adjusted considering all the other factors that could/should be changed. Maybe they’ll go up instead of down! As we said last week, a trouble is brewing between utilities and the pipelines that feed them. Here’s more background and insight into the brewing trouble…
    Read More “More on Unintended Consequences for Pipelines from Trump Tax Cut”

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    FERC Grants MVP OK to Begin Pipeline Construction in Virginia & W.V.

    In January, MDN reported that Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–had received permission from the Federal Energy Regulatory Commission (FERC) to begin tree clearing and construction of access roads and construction yards in five West Virginia counties: Wetzel, Harrison, Doddridge, Lewis and Braxton counties (see Mountain Valley Pipe Gets FERC Approval to Begin WV Construction). That was MVP’s very first permission to begin construction-related activities. It was the trickle. The flood gates burst open late last week when FERC began issuing what is (so far) four new orders. The new orders grant MVP permission to continue not only tree clearing and building roads, but also to begin construction of the actual pipeline itself. That is, digging trenches and laying steel in the ground–not only in WV, but also in Virginia. Construction is now under way in multiple counties in both states. We lay out where MVP is getting built, and what activities are now green lighted by FERC, below…
    Read More “FERC Grants MVP OK to Begin Pipeline Construction in Virginia & W.V.”

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    ME2 Pipeline’s $12.6M Shakedown Money Won’t Pay for Cleanup

    Last week MDN brought you the news that Sunoco Logistics Partners had agreed to pay a massive (historically high) $12.6 million fine to the PA Dept. of Environmental Protection (DEP) for “permit violations related to the construction of the Mariner East 2 pipeline project” (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction). Supposedly Sunoco’s ME2 construction activities have caused a few erosion issues here and some drilling mud leaks there–so-called “harms” to the environment. Surely some of the massive, historically high $12.6 million fine Sunoco is paying will be used to “fix” those problems, right? Wrong. Every single penny is going to other pockets (black holes) within the DEP, proving our contention that this was nothing more than a shakedown by a government agency. Essentially Sunoco had to pay DEP mobsters a “bribe” in order to restart work on the ME2 project. The DEP had Sunoco by the short hairs, blocking any new work until the money was paid. So what about “cleaning up” the problems created by ME2 construction? “[I]t’s highly likely that Sunoco will be required to clean up the damage caused by its botched construction, in addition to paying the penalty,” according to a former DEP Secretary. If that doesn’t beat all. Fine them AND make them pay even more for the cleanup. Welcome to doing business in Pennsylvania…
    Read More “ME2 Pipeline’s $12.6M Shakedown Money Won’t Pay for Cleanup”

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    Tallgrass has “Outstanding Quarter” Thx to REX Pipeline in the M-U

    We still, to this day, marvel at how Tallgrass Energy Partners turned around what looked like a financial disaster, into a financial bonanza. Tallgrass built the Rockies Express (REX) pipeline that stretches from Colorado and Wyoming all the way to Ohio just in time for the shale revolution to hit. Whoops! Talk about bad timing! A significant portion of REX, it’s Zone 3 pipeline from Missouri to Ohio, was in danger of drying up in 2012 because of the increase in Marcellus/Utica gas being produced (see REX NatGas Pipeline Faces Stiff Competition from Marcellus). Tallgrass did an about face, reversing the flow of REX to run from Ohio to Missouri a year later, in 2013 (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). Since that time volumes along the Zone 3 portion of REX have done nothing but increase. A lot of Marcellus/Utica gas now flows from our region to the Midwest by hitching a ride on REX. The strategy of reversing the pipeline’s flow turned what was shaping up to be a disaster, into a bonanza. Yesterday Tallgrass issued its fourth quarter and full year 2017 update. While Tallgrass (as other pipeline companies) did well in 2017 in general, much of the company’s success came “as a result of incremental capacity sales in Zone 3” of the REX pipeline…
    Read More “Tallgrass has “Outstanding Quarter” Thx to REX Pipeline in the M-U”