Pipelines

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    Shell Files PA Application for Ethane Pipe to Feed Cracker Plant

    Click to view a larger version of the map

    Shell’s long-talked about ethane pipeline, called Falcon Pipeline, is finally official. That is, official in the sense that Shell filed an application with the Pennsylvania Dept. of Environmental Protection last week, looking for permission to build it. Brief history: In February 2016, MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June 2016 (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily broke a story in August 2016 that shed new light on the project–news that Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). As NGI reported at that time, the new ethane pipeline system has a name: the Falcon Ethane Pipeline System. In October 2016 Shell launched a binding open season for the Falcon pipeline (see Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline). You might justifiably think that with open seasons and a scad of easements signed between landowners and Shell, that the project had already filed for permission to build. Not so. Last week Shell made it official by filing that paperwork–for the portion of the pipeline running through PA…
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    Harrisburg Job Fair Oct 6-7 Looks to Fill 400 Pipeline Jobs

    Listen up job seekers in eastern Pennsylvania: The International Brotherhood of Teamsters is looking for 400 people to work on building Williams’ Atlantic Sunrise Pipeline–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. The job fair is happening TODAY (Friday) and TOMORROW (Saturday) ath the Harrisburg-Hershey Crown Plaza located at 23 South 2nd Street in Harrisburg (8am-4pm both days). According to the Teamsters, there are “hundreds of jobs to fill” and they are “looking to expand our workforce quickly.” Qualifications? You need to be 21 years old or older, have a driver’s licence, and be willing to travel. Construction experience is a plus, but not required. Here’s the deets…
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    ME2 Pipe Blasting in Lebanon County Uncovers Old Pollution

    Blasting and drilling work in Lebanon County, PA related to building the Mariner East 2 Pipeline may have caused old deposits of MTBE (a gasoline additive) that had been stored at an old Sunoco facility to dislodge and migrate–into a nearby farmer’s water well. A subcontractor doing blasting work on Sept. 11 experienced “complications” during a detonation. Pieces of rock and debris hit a nearby house and swimming pool. Not a good thing. That blasting may also have led to the migration of MTBE to a nearby farm where MTBE had not previously been detected. Also not a good thing. Sunoco used to operate the Quentin terminal from 1940 to 1993 that served as a petroleum storage facility for the original Mariner East Pipeline–that flowed petroleum. That pipeline has since been repurposed and now flows natural gas liquids. Leaks from the old storage facility were known to have contaminated the ground in the area. It appears the blasting may have disturbed some of the pollution sitting under ground…
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    FERC Issues Final Approval for Delmarva Pipeline Expansion

    In July 2016 MDN told you about a smallish, but important pipeline project in the Delmarva Peninsula area, which includes most of Delaware and portions of Maryland and Virginia. Eastern Shore Natural Gas’ 2017 System Expansion project will bring new sources of natgas from an interconnection Eastern Shore has with the mighty TETCo (Texas Eastern Company) pipeline near Philadelphia (see PA/MD/DE Pipeline Project Heats Up with Open House Mtgs This Week). The project includes 22.7 miles of new looping pipeline (laid next to existing pipeline) in Pennsylvania, Maryland and Delaware; a 16.9-mile extension to a pipeline in Sussex County, DE; and upgrades to compressor and valve stations. Chesapeake Utilities, the parent company, calls the project the single largest such expansion in Eastern Shore’s history, a project that will bump up gas delivery volumes by 25%. In May the Federal Energy Regulatory Commission (FERC) gave the project a glowing environmental review (see Delmarva Pipeline Expansion Gets Positive FERC Enviro Review). A favorable EIS from FERC is typically prelude to a full, final approval. And such is the case with this project. On Wednesday, FERC issued a certificate approving the project–a final approval. The next step will be for Chesapeake Utilities, the parent company building the project, to request FERC permission to start the bulldozers and backhoes…
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    Southwestern Energy Reduces Methane Leaks, WITHOUT Onerous Regs

    The debate rages, both nationally and on the state level (in Pennsylvania, anyway) about the best way to reduce fugitive methane. That is, to stop methane from leaking out of pipes and into the atmosphere where it supposedly contributes to mythical man-made global warming. Leaving aside the nonsensical global warming stuff, it’s in the best interests of any producer (or pipeline company) to ensure no methane molecules leak out of the system. It’s the stuff they extract and sell! They don’t want their inventory flying away into heaven. The debate is how best to ensure less methane leaks. On one side you have the typical Big Government types that want to regulate everything, down to the type of equipment you use to detect leaks and the methods for fixing it. We have nothing against common sense regulations, but as everyone knows, government tends to screw things up, rather than fix things. On the other side you have drillers and midstream companies who content “just give us a standard and let us figure out how best to meet that standard.” Case in point is Southwestern Energy. Southwestern launched a leak detection and fixing program five years ago–and has dramatically cut the amount of methane leaking from its operations. Southwestern, and others, show us the way it should be done, WITHOUT needing onerous regulations from the federal government or from the regulation-happy PA Gov. Tom Wolf…
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    Warning: Secret Pipeline Ban on New York Ballot in November

    Next month when New Yorkers go to the polls to cast their votes (an illusory scam in Communist NY), there will be three Propositions on the ballot. One of the three is called, “Authorizing the Use of Forest Preserve Land for Specified Purposes.” The one-paragraph description implies municipalities will have more flexibility in using “preserved” land–so long as they designate the same amount of land to be added back to the pool of preserved land. It also allows bicycle trails and public utility lines to cross preserved land. However, what the description does not say (which can be found in a full reading of the proposition) is this: the proposition “prohibits the construction of a new intrastate gas or oil pipeline that did not receive necessary state and local permits and approvals by June 1, 2016.” So no new intrastate (within the state) pipelines through preserved land, period. Ever. Even though electric lines crossing preserved land are just fine. Why is Gov. Cuomo trying to hide this from residents? Will NY residents even wake up and notice they don’t know what they’re actually voting for (or against)? That’s how sleazy politics is played in the Empire State…
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    NEXUS Pipe Seeks to Begin Construction Oct 10; List of Contractors

    NEXUS Pipeline map – click for larger version

    Something just now coming to light. Last week NEXUS Pipeline sent a request to the Federal Energy Regulatory Commission (FERC) requesting that it be allowed to begin construction of the pipeline “on or before” Tuesday, October 10th. That’s next Tuesday, folks! NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS received final approval for the project from FERC in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Two weeks ago one of the final remaining hurdles came down when the Ohio EPA granted a water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). The project still faces court challenges (see CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court), however, those challenges are long-shots. Given that all permits have been issued, last Thursday NEXUS sent FERC a request to begin construction (see the request below). As part of the request, the contractors that will build the pipeline were named. We’ve pulled those names into a handy list, for those looking for jobs and those who want to sell goods and services to the companies actually building the pipeline…
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    Shell Pays $43/Foot in Recent Deal for Ethane Pipeline Easements

    Click for larger version

    In February 2016, MDN exclusively broke the news that Shell had begun to sign leases with landowners for a 97-mile ethane pipeline (two branches) to feed their mighty cracker plant (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). Since that time we’ve tracked any news we could find that reveals what Shell is paying landowners in Beaver County (and elsewhere) for the right to run the ethane pipeline (called the Falcon Ethane Pipeline) across their land. So far, we’ve seen rates as high as $75 per foot, and as low as $43 per foot. In the most recent round of easements–the first signed since August–Shell once again paid landowners $43/foot. Here’s the details of where the latest easements were signed, and for how much…
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    FERC Advances Plan to Reverse Part of TGP to Haul M-U NGLs to Gulf

    There’s lots of acronyms in that headline, so right up front let us restate the headline in clearer language: The Federal Energy Regulatory Commission (FERC) has just taken the next step to advance a project by Kinder Morgan to reverse a portion of the mighty Tennessee Gas Pipeline (TGP) to reverse its flow, to go from the northeast to the southwest, in order to haul Marcellus/Utica natural gas liquids (NGLs) to the Gulf Coast. Currently TGP hauls natural gas (not liquids) from the Gulf to the northeast. With a bumper crop of natural gas produced by the Marcellus/Utica, gas from the Gulf is no longer needed. Kinder Morgan, the owner/operator of TGP, first floated the idea to reverse 964 miles of their pipeline back in 2013 (see KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South). The pipeline reversal is part of the broader $4 billion Utica Marcellus Texas Pipeline (UMTP) project. The first step in making the project a reality is to get FERC’s permission to “abandon” (stop using) the 964-mile segment, called Pipeline No. 1, from Louisiana to Ohio. TGP filed to get permission to abandon it in Feb. 2015. Last Friday FERC granted permission for TGP to abandon that segment of the pipeline. Plenty of people objected to the plan, including existing natural gas customers along the 964 miles who now get their gas from TGP. FERC investigated all claims and found the project will not negatively impact the environment, or the pocketbooks, of those who objected. The question now is, when will work begin to abandon that portion of the pipeline?…
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    New M-U Pipes Ease Constraints, Another 4.5 Bcf/d Coming Early ’18

    According to experts speaking at the Platts Houston Energy Forum held yesterday, new pipelines going into service in the Marcellus/Utica region are having an effect. Pipeline constraints–not enough capacity to get the gas to markets outside of the region–are easing. Prices in some areas of our region where gas is bought and sold are improving (going up), but prices still have a long way to go. Perhaps the biggest eyeopener is that at least in the near-term, we may end up having more pipeline capacity than gas to fill it. By next spring, another 4.57 billion cubic feet per day (Bcf/d) of new pipeline capacity will go online: Access South and Adair Southwest projects on Texas Eastern Transmission will add another 520 million cubic feet per day (MMcf/d); Leach XPress on Columbia Gas Pipeline will add 1.5 Bcf/d; Rover Pipeline will get finished, bringing online an additional 2.55 Bcf/d (on top of the existing 700 MMcf/d flowing now). Here’s what the experts had to say about what’s coming down the pike in our region over the next year or so…
    Read More “New M-U Pipes Ease Constraints, Another 4.5 Bcf/d Coming Early ’18”

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    Antis Rally in Orange County, NY Against Clean-Burning NatGas Plant

    For more than two years MDN has chronicled the journey of Competitive Power Ventures (CPV) to build a $900 million Marcellus gas-fired electric plant in Wawayanda, NY, called the Valley Energy Center. Early on the project faced court challenges, but a judge gave final approval to build it in September 2015 (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). On Aug. 30, the Cuomo-corrupted NY Dept. of Environmental Conservation (DEC) issued a letter to FERC and Millennium, denying Millennium the right to build a 7.8 mile pipeline to feed the new plant (see Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline). Two weeks later overrode the DEC and told Millennium they can build it anyway (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). A group of anti-everythings in Orange County are adamantly opposed to the project–and they think if they can stop the pipeline, they can stop the project. Not true. If a gas pipeline is not run to the plant, CPV plans to use fuel oil instead (see If NatGas Pipeline is Blocked, NY Elec Plant Will Use Oil Instead). One way or the other, the plant will be completed in early 2018–and go online, producing electricity. As for what powers it–that remains to be seen. We found it interesting (and amusing) that a group of ninny nannies staged a rally on Monday in Wawayanda (where the CPV plant is under construction), to once again oppose the project–and to encourage the Orange County Legislature to pass a non-binding resolution against the project, hoping for…hoping for we’re not sure what! The plant is getting built. It’s a done deal. It’s going online early next year. It’s a done deal. The only thing that remains is to decide if clean-burning natural gas will power it–or much dirtier fuel oil. Apparently the antis are too obtuse to grasp this simple fact…
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    Con Edison Plans to Pay Customers to Use Less NatGas

    This story is really rich. Consolidated Edison (ConEd) is one of the nation’s largest investor-owned energy companies. ConEd is a utility, operating in the New York City area. It is one of the largest (perhaps the largest) seller of natural gas in NYC area. In a press release that has us equally laughing and crying, ConEd floats a new plan to meet the “growing natural gas demand” it’s seeing from customers. Early in the release ConEd states the facts: “construction of new natural gas pipelines [in New York] is not keeping pace with growing demand.” Why? Because New York has a corrupt governor, Andrew Cuomo, who caters to wild radicals that give him money for his campaigns. Yes, CORRUPT. And so Cuomo issues edicts to executive agencies, like the Dept. of Environmental Conservation (DEC), to deny permits for new pipelines. Hence, NY doesn’t have enough pipelines to flow increasing demand for natural gas. ConEd just admitted that. So how does ConEd plan to solve the problem they have? Maybe anchor a floating LNG import terminal off Long Island? Nope. Virtual pipelines to haul more gas to its facilities? Nope. How about rail cars hauling CNG or LNG? Nope. Here’s the brilliance at ConEd–they want to raise everyone’s gas and electric rates so they can pay building owners to not use as much gas! What?! That’s right, ConEd has filed a rate case with the New York State Public Service Commission that requests permission to raise rates and pay people to use less natural gas. Welcome to Wonderland (i.e. New York), Alice…
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    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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    FERC’s Rapid Response in Sabal Trail Case Shuts Down Sierra Club

    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 DC Court of Appeals Legislates New Law re FERC & Global Warming). The litigious, anti-fossil fuel radicals of the Sierra Club previously filed a lawsuit against the Federal Energy Regulatory Commission (FERC) blaming FERC for not considering mythical man-made global warming as it conducted a review of three pipelines in the southeast. The Southeast Market Pipelines Project (SMP) is an umbrella project for three natural gas pipelines in Alabama, Georgia, and Florida. The linchpin of the project is the Sabal Trail pipeline, which travels from Tallapoosa County in eastern Alabama, across southwestern Georgia, and down to Osceola County, Florida, just south of Orlando (nearly 500 miles). The Sierra Club said the three projects together didn’t take into consideration an increase in carbon and methane that would result from the three projects serving electric generating plants, and that said carbon and methane will contribute to global warming. The D.C. Court of Appeals agreed and instructed FERC to reconsider its environmental assessment of the three projects–vacating an approval of the main part of the project, the Sabal Trail pipeline. In a brilliant move, last week FERC filed a draft supplemental environmental impact statement (SEIS) to fulfill the court’s order. In it, FERC looks at the potential for extra carbon/methane in the atmosphere from several electric generating plants fed by the SMP pipelines. As for evaluating the overall effect on Mom Earth, FERC said there currently is no accurate method available that can do it. In other words, this lawsuit that the Clubbers so fervently thought would lead to stopping all sorts of projects just fizzled out (we can’t be happier) thanks to FERC’s quick action. FERC has effectively shut down the Sierra Club’s best chance of stopping pipeline projects…
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    Anarchists Brag About Vandalizing Mariner East 2 Constr Equipment

    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…
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    Lancaster Police Get Ready to Arrest Atlantic Sunrise Protesters

    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…
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