Pipelines

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    Work on Mariner East 2 Continues Following “Stop Work” Order

    Last week MDN reported the news that the Pennsylvania Dept. of Environmental Protection (DEP) has suspended all construction work on the Mariner East 2 Pipeline (ME2) project until further notice (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). However, all doesn’t necessarily mean all. A Chester County, PA anti’s celebration of the stop work order came crashing down when she noticed that work was still happening in an area located near her home. How can this be?! It seems the DEP’s statement that “all construction must stop” means “all construction which the DEP permits and authorizes must stop,” which can be further defined as “anything that disturbs the ground.” If the work involves digging, shoveling, etc., it’s stopped. But there’s still plenty of work that can continue–work that is not permitted by the DEP, including welding pipes together. That’s what’s happening at the site in Chester County–and local antis desperate to stop ME2 are mad and discouraged that Sunoco Logistics Partners continues to keep at least some of their workers busy while the company works to get full construction activity restored…
    Read More “Work on Mariner East 2 Continues Following “Stop Work” Order”

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    New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy

    In February 2015, Philadelphia-based economic consulting firm Econsult Solutions released a study looking the potential economic impact of the Mariner East 1 & 2 projects, concluding the two project together would result in $4.2 billion coming to Pennsylvania (see New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA). However, projects like Mariner East change over time. Econsult revisited and revamped their original study to reflect those changes. Know what they found? ME1 & ME2 together will result in over $9 billion of economic impact in PA! How could it be that much? Just consider, the two projects together will have created 57,000 direct, indirect and induced jobs between 2014 and 2019 (9,500 jobs annually) with earnings of $2.7 billion impacting multiple industries. And that’s just the jobs piece of the puzzle! Although total economic impact will exceed $9 billion, the pipeline will continue to generate revenue for PA state coffers for years into the future, via taxes and by feeding the petrochemical industry in the Philadelphia area. It’s not $9B total–it’s $9B initially. Sadly, the PA Dept. of Environmental Protection last week halted all work on Mariner East 2, delaying the economic benefits of the project in PA (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). Let’s hope ME2 resumes work quickly. In the meantime, we have a copy of Econsult’s new report below, along with comments by antis who ignore the hard science in front of their faces that the Mariner pipelines are a bonanza for PA…
    Read More “New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy”

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    Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC

    Last week we noticed the large merger/acquisition by Dominion Energy in buying South Carolina-based SCANA Corporation. We didn’t think much of it at the time. SCANA is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. In other words, the local electric and gas company for much of South Carolina. Dominion is a big company with many operations–they are a pipeline company, an electric generating company, and a utility company (like SCANA). The merger makes sense–Dominion gets to grow and add more customers to its utility business. We didn’t think there was a tie-in with the Marcellus/Utica region, which is why we haven’t (until now) brought you the news about Dominion’s $7.9 billion all-stock purchase of SCANA. However, there is a big potential connection to the Marcellus/Utica. You may recall we brought you news in early December that Dominion and their partner in the Atlantic Coast Pipeline (ACP) project Duke Energy are considering expanding the original ACP to more locations in North Carolina, AND expanding the pipeline into South Carolina (see Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC). Dominion is now openly saying that the SCANA purchase makes it more likely they will push to expand ACP into SC–meaning even more Marcellus/Utica gas could be flowing to Dixie…
    Read More “Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC”

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    Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?

    The news that the Pennsylvania Dept. of Environmental Protection (DEP) has suspended all construction work on the Mariner East 2 Pipeline project until further notice continues to reverberate (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). MDN has taken some heat for our implication that the main reason for the shutdown is pressure from radical Big Green groups. While we maintain our view is not incorrect, we also don’t want to leave the impression that there aren’t problems that need to be addressed with ME2 construction. There are. And the DEP is right to address them. What we DO take issue with is a complete shutdown of ALL construction. If the underground horizontal directional drilling (HDD) work is the primary issue, shut that down–but not all construction, including trench work. At any rate, we spotted a story about a landowner in Cumberland County who says his private water well was fouled when ME2 construction began–and it’s still not right. Below is his story as an example of what the DEP *should* be paying attention to…
    Read More “Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?”

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    Propane Prices in the Northeast & ME2 Pipeline

    A lot of the talk and chatter this week has been about the spike in the price of natural gas (see today’s lead story, NatGas Trading in NYC Hits $175/Mcf – Highest Ever Recorded!). The other hot topic of the week is the decision by the Pennsylvania Dept. of Environmental Protection (DEP) to temporarily suspend all construction work on the Mariner East 2 (ME2) Pipeline. What antis in the Philadelphia area don’t realize is that ME2 is vital to their own region and their own pocketbooks. Yesterday we brought you one take on why Philly residents are missing the boat in opposing ME2 (see It’s Time We Stop Missing the Point About the Mariner East Pipes). In that guest post, MDN friend Garland Thompson makes the salient point that jobs and the Philly economy are tied to petrochemicals and the NGLs that will flow through the Mariner East pipelines. Today we bring you another article about why ME2 is so vital to the Philly area: the cost of propane. One of the primary NGLs that will flow through ME2 is propane, used in a variety of applications, but particularly used in places where there are not natural gas pipelines to deliver gas to homes (like the various suburbs around Philly, the ones opposing ME2). Propane prices are going up because (a) much of the propane produced by Marcellus/Utica drillers goes by railcars to Kansas, where it catches a ride on a pipeline to the Gulf Coast, and (b) the propane that does come to the Philly area also comes via rail cars, at a much higher price than if it were shipped via pipeline. Add to that other countries want our propane and are bidding the price up–and you have a prescription for spiking propane prices around Philly. The article below delves into the business of propane, explaining terms you may have heard but don’t know what they mean–like “contango” and “backwardation.” Buckle up–here’s a deep dive into the economics of propane, and why Philadelphia desperately needs the ME2 pipeline–without delay…
    Read More “Propane Prices in the Northeast & ME2 Pipeline”

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    CNX’s Pipelines to be Used for “Partners” – Not Just CNX Res.

    Yesterday we brought you the news that CONE Midstream has been renamed to CNX Midstream, and that CNX Resources is now the sole owner of the entire gathering pipeline system (see CONE Midstream Gets a New Name: CNX Midstream Partners). CONE was originally a joint venture between CONSOL Energy (the “CO” part of the name) and Noble Energy (the “NE” part of the name). CONSOL and Noble had a joint venture on hundreds of thousands of Marcellus/Utica Shale acres. Some of the wells drilled were “owned” by CONSOL, some by Noble. CONSOL and Noble decided to divide up the JV, each taking a piece, in late 2016 (see Divorce: CONSOL & Noble Dissolve M-U Joint Venture). Then in May 2017, Noble up and sold all of their Marcellus leases and wells, to HG Energy (see Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?). Not long after, Noble announced they also want to sell their share of CONE. Long story short, CNX (formerly CONSOL) bought Noble’s CONE share, and now owns it lock, stock and barrel. Does that mean CNX will no longer flow gas from HG Energy (formerly Noble) wells served by their 100%-owned pipelines? Not on your life! CNX will continue to service HG Energy’s wells, and may even run gathering lines to other competitors’ wells (i.e. “partners”) in the areas where CNX Midstream operates. So said CNX CEO Nick DeIuliis on a conference call yesterday with analysts. DeIuliis is jazzed that his company now owns 100% of the pipeline gathering system because it will allow them to “move quickly” to seize opportunities…
    Read More “CNX’s Pipelines to be Used for “Partners” – Not Just CNX Res.”

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    As MVP Gears Up for Feb 1 Construction, WV Landowners Try to Block

    A relatively small number of landowners in West Virginia is using a novel legal argument to try and stop Mountain Valley Pipeline (MVP) from beginning construction. MVP is a $3.5 billion, 303-mile natural gas pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The Federal Energy Regulatory Commission (FERC) issued a final approval for the project in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). In order to keep the project on track for completion by the end of 2018, they need to begin tree clearing no later than Feb. 1st. Problem is, there are landowners in WV (and VA) who won’t negotiate with MVP on leases–so MVP has sued them using eminent domain. Here’s what typically happens in an eminent domain case (knowledge we gained at a session at last year’s Shale Insight event): Since this is a federally regulated project, MVP has the right (under FERC authority) to use eminent domain to “condemn” properties where the landowners won’t play ball. The cases are typically filed in U.S. District Court–in this case for the Southern District of West Virginia. MVP filed that paperwork back in October. What usually happens next is that the judge/court will grant an order allowing the pipeline company to enter the property and do the work–but the details about how much money the landowner gets is not decided, sometimes for a year or more. That’s a separate issue. First the company is allowed in and does the work, later on the court will decide how much money to award the landowner for the work. However, the WV landowners filed a response and motion for partial summary judgment in late December that makes the argument that how much each landowner gets should come first, before MVP is allowed on their property. Frankly, it just doesn’t work that way. Question is, what will the justices do in this case?…
    Read More “As MVP Gears Up for Feb 1 Construction, WV Landowners Try to Block”

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    FERC’s Vital Role as Referee in Building NatGas Pipelines

    The current cold snap and resulting high prices for natural gas in New York City and Boston are happening for one simple reason: lack of pipelines. In particular, as we pointed out yesterday, much of the blame can be laid at the feet of New York’s corrupt governor, Andrew Cuomo (see New England Can “Thank” NY Gov. Cuomo for Sky High NatGas Prices). Cuomo, using his lackeys at the state Dept. of Environmental Conservation, has blocked numerous important pipeline projects from entering NY from PA. Those pipelines can/would provide more natural gas for New Yorkers, AND provide more gas to other states, the New England states. Instead of paying $10-$15/thousand cubic feet (Mcf) for natural gas, New York and Boston are paying up to $175/Mcf and $105/Mcf respectively. It’s insane! The Federal Energy Regulatory Commission (FERC) was created to oversee authorization and construction of pipelines that cross state lines–specifically to prevent a single state (like NY) from blocking a pipeline that will benefit other states (like the New England states). We often read the flat-out lie that FERC is a rubber stamp for pipeline companies because in all of its history it’s only reject two pipeline projects. That’s just not true. Pipeline projects are submitted and FERC will tell the builder “make this change or that change, or you don’t get a permit”–and the changes get made. Or the pipeline company simply withdraws the project from consideration. A proper understanding of FERC and its role is crucial to the ongoing debate about whether states like NY can/should be allowed to destroy opportunities for other states. Writing in the Houston Chronicle, the president of the Iroquois Pipeline, Jeff Bruner, gives us a proper understanding of FERC and its vital role…
    Read More “FERC’s Vital Role as Referee in Building NatGas Pipelines”

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    PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline

    We suppose it was bound to happen sooner or later. The Pennsylvania Dept. of Environmental Protection (DEP) has caved to intense pressure from a cabal of Big Green groups and has told Sunoco Logistics Partners to suspend all work on the $2.5 billion Mariner East 2 (ME2) NGL pipline–from one side of the state to the other. Just yesterday MDN told you about the mounting pressure on the DEP to halt ME2 work, particularly work on underground horizontal directional drilling (see Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat). The shrill voices of Democrat Gov. Tom Wolf’s left flank were so shrill he couldn’t ignore them any longer, hence this action. The DEP in its order said construction will be halted, “until Sunoco can demonstrate that the permit conditions can and will be followed.” So there’s no particular time frame for when Sunoco can resume work–it will be up to the arbitrary gut feeling of the DEP. However, DEP does offer some criteria for when construction may be able to resume. Work can resume IF Sunoco satisfies the terms outlined in DEP’s order, including, but not limited to: (1) Address all impacts to private water wells in Silver Spring Township, Cumberland County; (2) Identify all in-progress or upcoming construction activities and detail the specific Chapter 102 and Chapter 105 permit under which the activity is authorized; (3) Submit a detailed Operations Plan outlining additional measures and controls to minimize inadvertent returns. In essence, the DEP is saying Sunoco has willfully violated the permits (and previous settlement) in constructing ME2, and they (DEP) have had enough. The DEP’s action immediately throws thousands of pipeline workers out of jobs across the state–thank you Tom Wolf and DEP. Big Green groups, including the odious Clean Air Council of Philadelphia, pounced on the DEP announcement, saying the agency should not just suspend construction, but CANCEL it. That has been their aim all along. These pressure groups want to stop the ME2 project cold. End it. Kill it. Finish it off. The DEP isn’t ready to grant that particular wish–yet. However, the suspension is certainly not good news for the project nor for thousand of families who will now have to make do with unemployment checks…
    Read More “PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline”

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    It’s Time We Stop Missing the Point About the Mariner East Pipes

    Yesterday the Pennsylvania Dept. of Environmental Protection suspended all work on the Mariner East 2 NGL Pipeline project (see today’s lead story, PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). The project has been vigorously opposed by antis in the greater Philadelphia area from the beginning. Their opposition stems from a deeper philosophical preference to end the use of fossil fuels. Last September, MDN editor Jim Willis had the pleasure of meeting and talking with Garland Thompson at the Shale Insight event in Pittsburgh. Garland, who lives in Philly, has written for the Career Communications Group of publications, including US Black Engineer & Information Technology, Hispanic Engineer & IT, and their siblings Woman of Color and Science Spectrum, for many years. He’s covered the shale revolution for those publications since 2008–before MDN began writing about it! Jim had an interesting conversation with Garland, about the need to educate folks, particularly the folks in the greater Philly area, about the benefits of pipelines. Springboarding on yesterday’s news, Garland has written a great opinion piece pointing out that opposition to the Mariner East pipelines (plural) is misguided and shortsighted. Garland builds a case for why everyone in the Philly region should want to see these important projects get built…
    Read More “It’s Time We Stop Missing the Point About the Mariner East Pipes”

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    Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA

    In November MDN brought you details about a 100% FREE training program for those interested in a career building pipelines in the Marcellus/Utica region (see 4-Wk FREE Training Program Helps Unemployed Get M-U Pipeline Jobs). The first batch of students to successfully complete the training (classes held each Wednesday), graduate today! Following graduation is a job fair with potential employers who are ready, willing and eager to hire those new graduates. A next section of the 4-week program begins next Wednesday at Indiana University of Pennsylvania’s campus in the Northpointe Technology Center (Armstrong County, PA). Believe it or not (we don’t know how this can be true), there’s still a few open spots. Each section is limited to 20 students. If you are interested and live somewhere within driving distance of Armstrong County, what are you waiting for? We have the details of how to enroll for FREE in this training course–a course worth $3,500…
    Read More “Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA”

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    FERC Launches Review for for Transco “Gateway Expansion Project”

    In November Williams filed an application with the Federal Energy Regulatory Commission (FERC) to upgrade certain facilities in New Jersey along Williams’ mighty Transco Pipeline (see Williams Files FERC Appl for Transco “Gateway Expansion Project”). The $85 million project, called the Transco “Gateway Expansion Project,” will flow an extra 65,000 dekatherms per day (or 65 million cubic feet) of natural gas to a couple of utility companies that have already signed on the dotted line as customers. The upgrades include a new compressor unit at Transco’s existing Compressor Station 303 in Essex County, NJ, a new valve and electric transformer also in Essex County, and equipment upgrades at a metering station in Passaic County, NJ. Both PSEG Power and UGI Energy Services have signed up to receive the extra gas–to be distributed to their customers in the region. On Tuesday FERC announced it has launched an environmental review of the project–the first step in approving such a project. FERC is accepting comments on the project through February 2nd…
    Read More “FERC Launches Review for for Transco “Gateway Expansion Project””

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    Dominion, MVP File to Dismiss VA-WV Lawsuit Against Pipe Projects

    In September a group of 57 gentry landowners in Virginia and West Virginia, backed by an out-of-state Big Green group, sued the Federal Energy Regulatory Commission (FERC) in an attempt to gut the 80-year old Natural Gas Act that gives FERC the right to grant eminent domain for pipeline projects (see VA, WV Landowners Sue FERC re Pipelines, Seek to Gut Natural Gas Act). Specifically, the colluding landowners oppose Dominion’s $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, and EQT’s $3.5 billion Mountain Valley Pipeline project, a 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The frivolous lawsuit, titled BOLD ALLIANCE, et al. v. FEDERAL ENERGY REGULATORY COMMISSION, et al., was filed in the U.S. District Court for the District of Columbia. It claims the landowners’ property is a “taking” not properly compensated under the U.S. Constitution. Yesterday two important parties to the lawsuit–Dominion (representing Atlantic Coast Pipeline) and Mountain Valley Pipeline–filed a motion to dismiss the case. They have a strong argument. Why dismiss? Because the gentry landowners filing the lawsuit have ignored United State laws, which specifically state that (a) ONLY FERC has jurisdiction over the projects and decisions about whether or not they can get built, (b) if a supposedly aggrieved party disagrees with FERC’s decisions, they must first file for a rehearing, and if FERC still refuses, then (c) the supposedly aggrieved party can file a lawsuit ONLY with the U.S. Court of Appeals for the District of Columbia. The suers (Bold Alliance) did file for a rehearing and FERC has not yet ruled on the rehearing. Bold Alliance tried to sidestep the law by moving forward with a lawsuit prematurely. However, the really big no-no is that they filed in U.S. District Court for DC, NOT the Court of Appeals for DC. Big difference. We see no other choice for the judges in U.S. District Court but to dismiss the case since Bold Alliance should not have brought the case in their court in the first place…
    Read More “Dominion, MVP File to Dismiss VA-WV Lawsuit Against Pipe Projects”

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    New England Can “Thank” NY Gov. Cuomo for Sky High NatGas Prices

    As we pointed out earlier this week, New England now has the dubious distinction of paying the highest prices for natural gas–in the world (see New England’s Lack of Pipelines = Most Expensive Gas in the WORLD). The recent cold snap, which continues, has made natgas in New England about as valuable as gold. As we pointed out in our post, New Englander’s have nobody to blame but themselves and their uber-liberal, lefty, know-nothing leaders. Except maybe there is someone else who shares at least some of the blame–New York’s corrupt Democrat governor, Andrew Cuomo. Cuomo not only banned fracking (which screws all New Yorkers), he’s also blocked important pipeline projects through NY that would connect Marcellus gas supplies to New England (screwing New Englanders). So New Englanders can blame themselves AND blame Gov. Cuomo. Forbes writer David Blackmon does a masterful job in laying the blame where it belongs–at the feet of Prince Andrew…
    Read More “New England Can “Thank” NY Gov. Cuomo for Sky High NatGas Prices”

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    Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress

    In mid-December MDN told you that the Leach XPress project–some ~160 miles of new natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle which will flow 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name)–would go online January 1st (see Leach XPress Starting Up Jan 1 – Marc/Utica Gas Heading to the Gulf!). And indeed it did! TransCanada, the owner of the project, announced Leach XPress is now online and flowing Marcellus/Utica gas to Kentucky. And from Kentucky, the gas flows south–some it all the way to the Gulf Coast via the Rayne pipeline. TransCanada also announced that the Federal Energy Regulatory Commission (FERC) has just issued final approvals for two more Columbia Pipeline-related projects: Mountaineer XPress and Gulf Xpress. Both projects will carry significant volumes of Marcellus/Utica gas to new markets. Mountaineer XPress will build 170 miles of new pipeline to flow 2.7 billion cubic feet (Bcf) per day of natural gas from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). At 2.7 Bcf/d, Mountaineer XPress is the second largest (by volume) new pipeline project for the Marcellus/Utica region–second only to Rover’s 3.25 Bcf/d pipeline. Gulf XPress consists of building seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. Here’s the details, along with a copy of the FERC approval, for these two important projects…
    Read More “Leach XPress Goes Online; FERC Approves Mountaineer & Gulf XPress”

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    Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat

    Sunoco Logistics Partners continues to feel the heat over their construction of the Mariner East 2 (ME2) natural gas liquids (NGL) pipeline project. Most of the heat comes from underground horizontal directional drilling (HDD)–drilling holes to install pipelines under structures like roads and streams, in places where you can’t just dig a trench. The problem is that sometimes the mud used to cool the drill bit for HDD work “leaks” or disappears into cracks and crevices, and sometimes the drilling mud ends up coming back to the surface. It’s called an “inadvertent return.” Bear in mind that drilling mud is otherwise known as bentonite–a nontoxic clay mixture. Bentonite is the same chemical compound used to make kitty litter, toothpaste and all sorts of cosmetics. It’s totally safe for the environment–unless you spill a lot of it and smother little critters like salamanders and fishies. Several Big Green groups sued to stop ME2’s HDD work last year. In August, Sunoco “settled” that lawsuit. The terms of the “settlement” called for Sunoco to reevaluate and resubmit plans for HDD drilling at 47 locations for review by the Dept. of Environmental Protection (DEP). Since that time more spills have occurred, and keep occurring (see Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations). Sometimes a spill is a few gallons–literally a nothing, but it must be reported anyway. Sometimes a few hundred gallons gets spilled–again, not a threat to the environment. But sometimes the spills are in the thousands of gallons–and that does begin to be a problem. Because of the ongoing spills, a Big Green group (part of the original lawsuit) is now demanding the PA DEP shut down all further HDD work. They admit their aim is to “shut down the entire project”–not just HDD drilling. While the DEP isn’t ready for such a drastic measure, the DEP is turning up the heat on Sunoco. Here’s an update…
    Read More “Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat”