Pipelines

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    Massachusetts Backdoor Pipeline Ban Sailing Thru Legislature

    One of the way pipeline companies afford to invest billions of dollars to build pipelines is via long-term contracts from would-be users of that pipeline. In Massachusetts, Spectra Energy (now a part of Enbridge) brokered deals with utility companies to provide them with cheap, clean-burning Marcellus/Utica natural gas. In order for those utilities to afford it, they would need to pass along some of the cost of building the pipeline to reach them. Wait, what? Electric customers would have to pay for a natural gas pipeline? Well, yes! Because the new, cheaper gas would produce electricity at a lower cost, thereby lowering their monthly electric bills. They benefit, directly, from such a pipeline. However, radical leftists took that arrangement to court and in August 2016 the Massachusetts Supreme Judicial Court ruled utilities could not pass along costs for pipelines to electric customers (see MA Supreme Court Ruling Endangers New England Gas Pipelines). For a variety of reasons, with that decision being one of the biggest, Spectra/Enbridge later decided to mothball plans for their pipeline project, in June of this year (see Enbridge Withdraws $3B Access Northeast Pipeline Application). The Massachusetts legislature is full of lefties, and they don’t want to leave anything to chance–that maybe in the future such a deal will come around again. So a pair of bills are now sailing through the legislature will make it permanently illegal for utilities to pass along the cost of pipelines to electricity customers. In essence, it’s a backdoor move to ban any more pipelines from getting built in the Bay State…
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    Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work

    Just before the holidays, thousands of workers who were working on the Atlantic Sunrise Pipeline project have been escorted to the unemployment office–courtesy the odious Sierra Club. Yesterday we brought you the sad news that the Sierra Club’s lawsuit has stopped work on the $3 billion pipeline project (see DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work). Companies building closely-vetted and highly regulated projects like Atlantic Sunrise project are jobs creators. The Sierra Club is a jobs destroyer. We asked Williams how many workers have been idled because of the work stoppage from the “temporary” order from the court. Williams spokesman Chris Stockton replied: “The exact number is 2,500.” He also said this: “It is costing about $8 million per day in idle construction costs.” The Clubbers’ frivolous lawsuit is causing real pain and real suffering for thousands of workers…and their families…and their children. Williams issued a press release yesterday to say they have filed a “Motion for Clarification” to determine what the emergency stop work order affects–just construction work in PA? Or the work they’ve already done (and are doing) outside of PA, which would stop new quantities of Marcellus gas already flowing south? Williams says they expect the court will conduct their review “expeditiously” and end this charade (our word) very soon. Antis rejoiced in the news of the stop work order, including one of the “leaders” of the airheaded opposition, who sounded like an 80s Valley Girl when she said: “I can’t believe it, like, does this mean they can’t continue with construction? Like, seriously?” Meanwhile, like some 2,500 people are like tragically out of work–including like 370 in Schuylkill County alone. Merry Christmas from the Sierra Club and from a small group of radicals called Lancaster Against Pipelines…
    Read More “Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work”

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    DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work

    The arrogance of Big Green was on full display yesterday as they rushed to stop the Atlantic Sunrise Pipeline project project and silence lawfully permitted work. In response to a lawsuit filed by the worst of the worst (the Sierra Club) on Oct. 30th, a liberal court in the District of Columbia yesterday slapped the Atlantic Sunrise project with an emergency stop work order–for the entire project. Work had already begun to lay pipe on the property of Catholic nuns in Lancaster County, PA. The nuns call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn (you can read why here). The Sisters have allowed themselves to be used to oppose the Atlantic Sunrise project by a radical professor from Lancaster County, Mark Clatterbuck, someone who engaged in the North Dakota Access Pipeline protests (protests that turned violent). Clatterbuck enlisted the help of his Big Green buddies in the Sierra Club to try and litigate to stop the federally and legally approved project last week (see Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction). Yesterday we told you that Williams, the builder, was building at the site of the Sisters first because of the involvement of Clattberbuck and Big Green interference–get the hard part done first (see First Atlantic Sunrise Pipe Gets Buried on Nun Property). We were grinning that pipeline on the Sisters’ property would be the first to be laid and buried in the ground, likely done this week. Today the grin is wiped off our face, we must confess. It’s so sad to see egregious abuses of our legal system like this. We expect the stop work order for the project will be temporary–perhaps a few weeks. But one never knows. The DC Circuit Court of Appeals is looking at the question of whether the Federal Energy Regulatory Commission was correct in approving the project in the first place last February…
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    Williams 3Q17: Atlantic Sunrise Shines, “Stay Tuned” on Constitution

    Last week midstream powerhouse Williams issued their third quarter 2017 update. CEO Alan Armstrong said this about the Transco Pipeline–a key pipeline in the Marcellus/Utica region: “So far in 2017, we’ve placed four of our ‘Big 5’ Transco expansion projects into service including Gulf Trace, Hillabee Phase 1, Dalton Expansion and New York Bay Expansion with the fifth of the ‘Big 5’ expansions – the Virginia Southside II project – expected to be placed in service during fourth-quarter 2017. The incremental capacity from the fully-contracted Transco expansion projects going in service so far this year reflects a 25 percent increase in Transco’s design capacity.” All five of those projects to one degree or another flow Marcellus/Utica Shale gas. Williams is in a multi-year program to reverse the flow of the Transco. Traditionally it has flowed gas from the Gulf to the northeast. The pipeline is in the process of getting turned around, to flow our gas southward, some of it all the way to the Gulf Coast. With respect to the Atlantic Sunrise project–a part of the Transco system–Armstrong reminded listeners on the analyst phone call that some of that project is already up and running: “And on Atlantic Sunrise, we started construction and have already placed a portion of Atlantic Sunrise into early service on September 1 of this year, providing about 400,000 dekatherms a day of firm transportation service on Transco’s existing mainline facilities, and of course that serve delivery points as far south as Choctaw County, Alabama. So we’re really excited to be starting to see the Transco system turn around and be able to deliver volumes to the south. And I can tell you, that’s very much needed as we’re seeing a lot of demand growth occur in the southeast on our system.” As for the stalled Constitution Pipeline in New York State, Armstrong said to “stay tuned” and that there is “plenty of fight left in this dog.” Armstrong sounded encouraged about the prospects of the Constitution. Below is the full 3Q17 update complete with financials, excerpts from the analyst phone call of interest for MDN readers, and the newest slide deck…
    Read More “Williams 3Q17: Atlantic Sunrise Shines, “Stay Tuned” on Constitution”

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    OH EPA Director Manipulates Atty General to Sue Rover Pipeline

    The director of the Ohio Environmental Protection Agency (EPA), Craig Butler, continues to go off the rails with a major grudge against Rover Pipeline (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). Using his position and the power of his agency, Butler has now convinced Ohio’s wishy washy Republican Attorney General, Mike DeWine, to sue Rover “for polluting state waters while constructing a natural gas pipeline across Ohio.” Which is, of course, nonsense. Yes there have been some spills of drilling mud. It happens. Yes, one of them was totally unacceptable (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). However, using the mighty power of the entire state to sue a private company because Butler has an ego trip and wants to shake down the Rover project for millions is unacceptable. It’s time to fire Craig Butler. Below is the AG DeWine’s brief statement, a copy of the sham lawsuit DeWine filed late last week, and a response from Energy Transfer Partners, the builder of Rover…
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    First Atlantic Sunrise Pipe Gets Buried on Nun Property

    We find this story amusing. A group of left-leaning Catholic nuns in Lancaster County, PA, whipped up by radical environmentalists with ties to Big Green organizations, got it into their heads to try and block a very-safe natural gas pipeline from crossing their property–the Atlantic Sunrise Pipeline being built by Williams. The Sisters call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn, because they put a couple of wooden park benches in a cornfield on their property (leased to a local farmer), christening it a “chapel” and claiming because the pipeline would run through the middle of their so-called chapel, building a pipeline is a violation of freedom of religion. In September a federal judge tossed the lawsuit (see Fed Judge Tosses Lancaster Nuns’ Freedom of Religion Lawsuit re ASP). However, the Sisters and their bought-and-paid-for-by-Big-Green lawyers have appealed it. The Sisters are hypocrites. They heat an old folks home they operate on the very same property–with natural gas! Talk about chutzpah. Over the past few weeks, mostly non-local Big Green protesters have showed up at the property as work began. So far 29 of the wackier protesters have been arrested trying to block work on the pipeline (see Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested and 6 More Arrested for Blocking Pipe Work at Lancaster Nun Property). Williams wisely chose the cornfield site owned by the Sisters as the first place to dig and lay pipeline. Within a few days (perhaps already), that very location will be the first portion of Atlantic Sunrise to be laid in the ground and covered up. Williams isn’t stupid. Get the location with the most resistance done first and the rest is a piece of cake. Meanwhile, Big Green lawyers are screaming for court intervention, even as the pipes are lowered into the trench (we just can’t wipe the smile off our face)…
    Read More “First Atlantic Sunrise Pipe Gets Buried on Nun Property”

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    NFG 3Q17: Delayed Northern Access Pipe No Closer to Resolution

    Last week National Fuel Gas Company, headquartered in Western New York State with drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline, issued its fourth quarter (everyone else’s third quarter) 2017 update. In the accompanying analyst phone call, CEO Ronald Tanski blamed the delay of the Northern Access Pipeline project (delayed by the NY Dept. of Environmental Conservation) for lower earnings than the company would have otherwise realized. Thanks, business UNfriendly NY! You may recall in July NFG filed a lawsuit against the DEC for arbitrarily rejecting the project (see Northern Access Pipeline Court Case Further Threatens NY DEC). On the analyst call, Tanski said the case, filed in the Second Circuit Court of Appeals (in NY), will hold oral arguments on Nov. 16th. Tanski also said it’s “anyone’s guess” when NFG will get an answer about the project–either from the lawsuit or the Federal Energy Regulatory Commission (FERC). On the drilling front, Seneca Resources produced 40.4 billion cubic feet equivalent (Bcfe) last quarter, up a tiny 1% from the same quarter a year ago. After hedging, Seneca got $2.91 per thousand cubic feet (Mcf) for their gas–not too shabby. Below is the full update for NFG for last quarter (remember they also have a huge utility business, in addition to drilling and pipelines), along with excerpts from the analyst call and the latest slide deck…
    Read More “NFG 3Q17: Delayed Northern Access Pipe No Closer to Resolution”

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    FERC Clears 1 Bcf/d Rayne Xpress Pipe to Begin Service

    In January of this year, the Federal Energy Regulatory Commission (FERC) voted to approve and issue a certificate to Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects (see FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects). The two projects work together to move Marcellus/Utica gas all the way to the Gulf Coast. The Leach XPress project involves construction of approximately 160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle, flowing 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name). Rayne XPress works hand in glove with Leach. There is an existing natgas pipeline from Leach, KY all the way to the Louisiana Gulf Coast. That pipeline is called the Rayne, for Rayne, LA. The Rayne Xpress project beefs up the Rayne pipeline with new compressor stations to add an additional 1 Bcf per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast. Both projects are scheduled to go online this month. Leach XPress isn’t ready yet, but Rayne XPress is. Yesterday FERC granted Columbia Pipeline (now owned by TransCanada) permission to begin flowing gas along Rayne–Marcellus/Utica gas–all the way to the Gulf Coast…
    Read More “FERC Clears 1 Bcf/d Rayne Xpress Pipe to Begin Service”

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    Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas

    Exciting! We have a brand new pipeline project to tell you about–located in the Greater Philadelphia area. Although the project is new, the pipeline is old–already in the ground. Talen Energy, birthed in June 2015 from a combination between PPL Energy Supply and certain assets of Riverstone Holdings, is one of the largest competitive energy and power generation companies in North America. Talen’s core business is building and operating electric generating power plants. One of the assets Talen inherited in the merger is an 84-mile pipeline called the Interstate Energy Company which runs from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook. Talen announced yesterday they’ve sold the Interstate Energy Company (the pipeline) to Adelphia Gateway, a subsidiary of New Jersey Resources, for $189 million. The northern 34 miles of the pipeline was converted to flow natural gas back in 1996. The southern 50 miles currently flows oil, but Adelphia (NJ Resources) announced yesterday they will convert the oil portion of the pipeline to instead flow natural gas. The bottom line is that a wide swath of Greater Philly is about to get a new source of clean-burning, abundant fracked PA natural gas…
    Read More “Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas”

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    Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction

    The odious Sierra Club is at it again. Using what appears to be endless supplies of money from people like the Rockefellers, the Sierra Club, along with a mishmash of other radical environmental groups, filed an emergency motion in federal court on Monday, asking the court to stop any further work on the Atlantic Sunrise Pipeline. Atlantic Sunrise is a $3 billion, 198-mile natural gas 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. Williams, the company building/owning the project, broke ground in September (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Since that time 29 radicals in two different protests have been arrested for blocking construction in Lancaster County (see Lancaster Pipeline Protesters ‘Do the Hokey Pokey’ & Get Arrested and 6 More Arrested for Blocking Pipe Work at Lancaster Nun Property). However, the work continues–at a rapid pace. Williams knows the longer they take, the more likely antis will find a way to slow or stop the construction. On Monday the Sierra Clubbers filed their latest “throw everything against the wall to see if something sticks” frivolous lawsuit to try and stop it–to give their other (numerous) frivolous lawsuits a chance to work their way through the court system, in hopes something, anything will work to stop the project…
    Read More “Sierra Club Asks Fed Court to Stop Atlantic Sunrise Construction”

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    PA DEP Keeps Up Pressure on Mariner East 2 Pipe in Lebanon County

    The Pennsylvania Dept. of Environmental Protection (DEP) continues its quest to put Mariner East 2 (ME2) Pipeline construction under a microscope. Two days ago MDN told you that the DEP had issued a Notice of Violation (NOV) for ME2 work in Lebanon County, PA, for spilling LESS THAN 1 gallon of non-toxic drilling mud (see PA DEP Shuts Down ME2 Drilling in Lebanon, PA for 1 Gal Mud Spill). Because it was the second spill at that location (the first being ~50 gallons), DEP shut down horizontal directional drilling at the Snitz Creek site. The DEP is back, riding ME2 for all they’re worth, with another NOV in Lebanon County. This one is because the DEP “observed sediment flowing into an unnamed tributary of Killinger Creek in South Londonderry Township.” If a body of water is large enough to be called a creek (something that runs year-round), it gets named. If a body of water isn’t even that big, it’s called an unnamed tributary–a body of water that may or may not flow year-round. We call it a drainage ditch. At any rate, DEP says Sunoco Logistics and their contractor building the pipeline in that area woulda/shoulda/coulda stopped a little dirt from washing down that drainage ditch if they had only used “best practices for controlling erosion.” Here’s the latest view under the microscope…
    Read More “PA DEP Keeps Up Pressure on Mariner East 2 Pipe in Lebanon County”

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    US Senate Votes to Confirm Final 2 FERC Commissioners

    In July, President Trump nominateed Kevin McIntyre, co-leader of the global Energy Practice at the Jones Day law firm, as the fifth (and final) FERC commissioner (see Pres. Trump Finally Nominates Kevin McIntyre to FERC, as Chairman). At that time, Trump also signaled he will make McIntyre chairman of the commission. Previously to that, Trump had nominated Richard Glick–a Chuck Schumer Democrat pick. McIntyre and Glick are the final two Commission members, rounding out a full compliment of five. Trump had previously nominated (later confirmed and now serving) Neil Chatterjee and Rob Powelson. It took the swamp dwellers in the Senate from July until November, but yesterday afternoon the Senate finally confirmed McIntyre and Glick. As soon as they are sworn in, McIntyre will take over the Chairman role from Chatterjee who has been serving in that role as a placeholder (doing a good job, we might add). One of the key issues ahead for all five commissioners is what to do about DOE Sec. Rick Perry’s “save coal and nuke energy” plan. Two of Trump’s picks, Chatterjee and Powelson, already disagree on what to do about Perry’s proposal (see Trump’s FERC Commissioners Disagree on Grid Reliability Plan). Here’s how it went down with the Senate vote to approve McIntyre and Glick…
    Read More “US Senate Votes to Confirm Final 2 FERC Commissioners”

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    WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline

    Hold on or you might get whiplash. In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit for the 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 (see WV DEP Grants Mountain Valley Pipeline Water Crossing Permit). In June, a group of profoundly radical “environmental” organizations (Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network) filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit against the WVDEP for doing their job issuing the permit (see Radicals File Lawsuit Against WV DEP for Approving MV Pipeline). Because of the pressure of that lawsuit, the WVDEP caved and reversed their decision in September, rescinding (called “vacating”) the permit for MVP (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). The WVDEP said they will “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” Just two weeks ago the 4th U.S. Circuit Court of Appeals upheld WVDEP’s decision and granted the agency’s motion to invalidate the previous certificate they granted the project (see Court Backs WVDEP Move to Cancel Permits for Mountain Valley Pipe). Yesterday, in yet another 180 degree about face, WVDEP announced it has “lifted the suspension” of the MVP stormwater permit–and that the agency has decided to waive the permit, MVP has no need to get it before beginning construction. It appears newly-minted Gov. Jim Justice, still in his first year, put a branding iron to the backside of WVDEP. Hold on to your cowboy hat! MVP is on the way to getting built in the Mountain State…
    Read More “WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline”

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    UGI Buys NatGas Pipeline Gathering System in NE PA

    UGI is a major utility company in Pennsylvania, providing natural gas and electric service to 700,000 Pennsylvania residents across the state. UGI, via its Energy Services subsidiary, operates natural gas storage facilities, compressor stations, LNG plants and local pipeline gathering systems. UGI operates several gathering systems in northeastern PA. Yesterday the company announced is has purchased an existing gathering system from Rockdale Marcellus for an undisclosed sum. The Rockdale gathering system consists of 60 miles of gathering lines–along with dehydration and compression facilities–located in Tioga, Lycoming and Bradford counties in northeast PA. The system was purchased, on paper, by UGI subsidiary Texas Creek, so the gathering system has been rebranded UGI Texas Creek. MDN has a map of the new system below…
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    Tetco’s Access South, Adair Southwest Pipes OK’d to Begin Service

    In August 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express. The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline (see FERC Approves 3 Spectra Energy Pipe Projects in Marcellus/Utica). The three are part of an expansion of the Texas Eastern Transmission (Tetco) pipeline, owned by Spectra Energy, which is now owned by Canadian midstreamer Enbridge. The combined projects will transport an additional 662,000 dekatherms per day (or 662 million cubic feet, or Mmcf) of Marcellus and Utica Shale gas from Pennsylvania to Ohio, Kentucky and Mississippi. In December 2016, FERC issued a final approval (see FERC Issues Certificates for 3 Spectra Energy Pipe Projects in M-U). Since that time Spectra/Enbridge has been busy building. Lebanon Express, which was renamed Lebanon Expansion, went into service in August. Access South and Adair Southwest are now ready to begin flowing. On Tuesday, FERC gave Tetco permission to begin partial service on the two systems, which will begin pumping (for now) 416 Mmcf/d of Marcellus/Utica gas to new markets. Which will make Rice Energy and Range Resources happy–they’re the two companies reserving all of the increased capacity the upgrades will bring…
    Read More “Tetco’s Access South, Adair Southwest Pipes OK’d to Begin Service”

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    TransCanada Pipe Begins Lowball Shipping to Compete with Marc/Utica

    Let the battle begin! TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year 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 when/if the NEXUS and Rover pipelines get built (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. The original open season last year was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). A bevy of regulatory approvals were required, the biggest being from the National Energy Board. The NEB finally gave their blessing in September (see Canadians Approve TransCanada Pipe Lowball Plan to Compete with M-U). Yesterday, on Nov. 1st, TransCanada said they began shipping western Canadian gas across the country at the new lowball prices…
    Read More “TransCanada Pipe Begins Lowball Shipping to Compete with Marc/Utica”