Competition Heats Up Between W. Canadian & Marcellus/Utica Gas
Last week MDN reported the Canadian National Energy Board (NEB) had approved of TransCanada’s plan to lowball the price to haul natural gas all the way from Alberta (in western Canada) to the Toronto Dawn Hub in eastern Canada (see Canadians Approve TransCanada Pipe Lowball Plan to Compete with M-U). TransCanada 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. TransCanada’s pipeline theoretically can ship 3.5 billion cubic feet per day (Bcf/d) of natural gas from west to east. When Rover Pipeline is full online sometime in 2018, it will ship up to 3.25 Bcf/d of Marcellus/Utica gas to the Dawn Hub. If NEXUS Pipeline ever gets built, it too will one day flow gas all the way to the Dawn Hub–up to 1.5 Bcf/d. TransCanada is attempting to get there first. In this clash of the titans, between western Canadian gas and Marcellus/Utica gas, who wins? There will be a number of winners, including the drillers shipping the gas. And the pipeline companies shipping the gas. But perhaps the biggest winners will be Ontario residents who use natural gas. Their prices to buy and use gas are heading much lower…
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In August the D.C. Court of Appeals ruled in a case that (we previously thought) may have long-term, very negative consequences for the oil and gas industry related to pipeline development (see 
A group of lawless anarchists–people calling themselves “anti-capitalists” from the Philadelphia area, have admitted in a blog post that they engaged in illegal, criminal (we’d call it eco-terrorist) activities against construction equipment being used in Media (Delaware County), PA for the Mariner East 2 Pipeline project. The criminals, from the anti-American group Philly Anti-Capitalist, said they filled the fuel tanks of a flatbed truck and several excavators with sand and sugar–meant to ruin the engines. They even outline how to inflict maximum damage to the engines by removing the fuel filters. These idiots justify their criminal actions by saying, “Human-caused ecological collapse and mass extinction are upon us.” In other words, they’re loony tunes. Crazy. Driven to commit criminal acts because they’ve been brainwashed into believing mankind is poisoning Mom Earth by extracting and using fossil fuels. And brainwashed against liberty and freedom as personified in the United States. They are serious (and dangerous) nutjobs. We sincerely hope the FBI, Homeland Security and other police organizations hunt them down and jail them for destroying private property…
Police in Lancaster County, PA are trying to get out in front of what they expect may be a tense situation. Big Green groups along with local nutters in the Lancaster area have pledged so-called non-violent action to stop work on the now-fully permissioned Atlantic Sunrise Pipeline project. 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. Lancaster Against Pipelines, headed up by Mark Clatterbuck (who participated in the ineffective protests against the Dakota Access Pipeline) and his wife Malinda. The clattering Clatterbucks have made threats that they and their “many” followers will enter private land and do whatever it takes–lock arms, chain themselves to something, etc.–to stop the backhoes and bulldozers. Several local town police departments, wanting to be prepared, sent a form letter/survey to residents where the pipeline will cross, to ask them (a) if they (the landowners) plan to allow antis onto their property, and (b) if they don’t plan to allow antis, will they consent to allowing the police to arrest antis on their property. Manor police Chief Todd Graeff says his department is neutral with respect to the pipeline–they just want to know where they have permission to enter and arrest people, and where they don’t. In West Hempfield “many” of the questionnaires have been signed and returned. Every single returned questionnaire gives the police permission to arrest antis on their property. Which is a VERY loud and clear signal to the troublemakers: You WILL get arrested and jailed for your shenanigans…
Back in May MDN told you about the antis running the City of Green, Ohio (see 
In July, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. At least, we *thought* the pipeline would end in North Carolina–at Lumberton. However, Dominion vice president and general manager for Southern pipeline operations, Dan Weekley, seems to have spilled the beans at an industry conference that Dominion has designs on extending Atlantic Coast beyond North Carolina–into South Carolina. He said “everybody knows” that Atlantic Coast is not going to stop in Lumberton, “despite” what current plans say. It was just two months ago that FERC issued a final, favorable environmental impact statement for the project–a project that terminates in NC (see 
One of the interesting breakout sessions MDN editor Jim Willis attended at last week’s Shale Insight event in Pittsburgh was a panel of lawyers discussing recent rulings in the Marcellus/Utica related to eminent domain and royalties. Sitting with the lawyers was a non-lawyer panelist from Williams. Aaron Blair is right-of-way manager for Williams in the northeast. He managed securing easements for the Atlantic Sunrise Pipeline project, Williams’ $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. The lawyers on the panel peppered Blair with questions about his strategy for securing rights. Blair’s strategy boils down to this: if/when you need to file for eminent domain, do so in federal, NOT Pennsylvania state court (and certainly not with appointed commissions). Blair finds federal judges know the law and stick to the law–and the case law with regard to eminent domain, whether you like it or not, is quite clear when it comes to pipelines. Atlantic Sunrise began with needing leases from about 950 landowners. In the end, just under 50 of them had to be settled with eminent domain proceedings in court. Here’s an overview of what Blair said on the panel…
One of the major themes at this year’s Shale Insight, emphasized several times, is that “We need pipelines, and we need them asap.” MDN heard that refrain a number of times, in different sessions. The good news is that there is more than $23 billion in planned pipeline investment to build more than 3,200 miles of pipelines–either planned or under development–for the Marcellus/Utica region. If you add these 15 project together, they will move another 17 billion cubic feet of Marcellus and Utica natural gas, and 345,000 barrels of natural gas liquids (NGLs), PER DAY! Some of these pipeline projects are already under construction, nearing completion. Some have just begun construction. Some will begin construction soon. And some are still waiting for regulatory approvals. A few are tied up in court, attempting to overcome state bans in New York. Any way you slice it and dice it, more pipelines ARE on the way, asap. And that’s very good news. Below is a list of the 15 projects, courtesy our friends at Energy in Depth…
A group of Catholic nuns in Lancaster County called Adorers of the Blood of Christ have tried several strategies to derail the Williams Atlantic Sunrise Pipeline (ASP) project. One of stunts they have pulled, in league with a radical Big Green group, is to stick a few wooden park benches in the middle of a corn field that they own (leased to a local farmer), and call it a “chapel” (see 
This story makes us angry–not at Maine Gov. Paul LePage, but at the obtuse governors and officials in Massachusetts, New Hampshire and (yes) New York. For years LePage, a Republican, has advocated for more natural gas pipelines to his state and to the entire New England region. Back in 2014 all of New England’s governors were on board with supporting Kinder Morgan’s Northeast Energy Direct (NED) pipeline extension of the Tennessee Gas Pipeline (see 
MDN is once again attending the Shale Insight event–in Pittsburgh. Yesterday was the first day of the event. The crowd was definitely smaller than last year when then-candidate Trump spoke to attendees. However, Day One saw a number of heavy-hitting speakers, including Secretary of Labor Alexander Acosta, Deputy Secretary of Energy Dan Brouillette, XTO Energy President Sara Ortwein, Chevron Appalachia President Stacey Olson, and People’s Natural Gas CEO Morgan O’Brien. Marcellus Shale Coalition President Dave Spigelmyer served as master of ceremonies and seemed to be everywhere-present during the event (how does he DO that?). From the opening session to the exhibit floor to attending the breakout sessions, MDN editor Jim Willis made the rounds–and took lots of notes. In the coming days he will write up those notes and share them. For now, we have links and extracts of articles from other publications attending and reporting on this year’s Shale Insight…
Last week MDN brought you the news that Ohio EPA’s director, Craig Butler, has kind of tipped over into the deep end with his rantings and ravings about Rover Pipeline (see 
Two serial, paid protesters, along with a landowner and her daughter have sued Sunoco Logistics and parent company Energy Transfer for breaching their constitutional rights. You may recall our story about the daughter of a Huntingdon County, PA landowner, radicalized by Big Green groups (as evidenced by her association with well known protesters previously arrested), who took to a tree on her mom’s property in March 2016 in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see 
Over the past few years MDN has tracked the progress of 4 LNG export plants planned for the eastern shore of Nova Scotia. Two of those projects appear to have life–the Bear Head LNG project (
“Loss of circulation” sounds like a terminal condition–and perhaps it is, in a human body. But that phrase applied to drilling underground to install pipelines holds a different meaning. Loss of circulation is the technical term used when drilling fluid migrates out of the hole being drilled, and into (eeks) groundwater. Thing is, drilling fluid used to drill for pipelines is non-toxic–the primary component being bentonite clay. Bentonite is the same thing used to make kitty litter, cosmetics and toothpaste. So a little bentonite clay escaping into a water supply is not a big deal–unless it’s a LOT of bentonite escaping. Then it can foul a water supply, at least until the clay settles and the water clears again. A former geologist working for the Texas Railroad Commission (the government body in charge of regulating oil and gas in Texas) has written a thoughtful column in the Harrisburg Patriot-News to talk about loss of circulation that has happened in several locations while drilling for the Mariner East 2 pipeline in PA. The former geologist knows a thing or two about drilling, about benonite, and about spilling a little mud here and there. He provides some much needed perspective on the issue–a counterbalance to the wild speculations and false claims made by anti-fossil fuelers…
PennEast Pipeline has just achieved yet another milestone on its way to getting built. At a meeting last Thursday, the Board of Supervisors for Kidder Township (Carbon County, PA) voted 5-0 in favor of issuing a permit to PennEast to site the one-and-only compressor station the 120-mile pipeline will need. Proving yet again that most Pennsylvanians are in favor of this project, contrary to the mainstream/leftist media drumbeat against it. PennEast is a $1 billion primarily 36-inch pipeline from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The company expects final Federal Energy Regulatory Commission (FERC) approval any week now. There are still a few hurdles left–mostly in New Jersey. But those hurdles are certainly surmountable. The radical Sierra Club and THE Delaware Riverkeeper are adamantly opposed and continue to try and throw up legal (and regulatory) roadblocks. No matter. This important pipeline will get built–and this compressor station approval is one more bit of evidence that it will get built…