Pipelines

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    Antis Pressure Virginia DEQ to Delay or Deny Permits for 2 Pipelines

    Anti-fossil fuelers, aided and abetted by liberal local media, continues the drumbeat to pressure the Virginia Dept. of Environmental Quality to either block, or greatly slow down, approvals needed to build both the $5 billion, 594-mile Dominion Atlantic Coast Pipeline (ACP) project and the $3.5 billion, 301-mile Mountain Valley Pipeline (MVP). Both pipelines start in West Virginia. ACP crosses through Virginia and stretches into North Caroline. MVP terminates in southern Virginia. Some oppose the projects due to an insane hatred of fossil fuels (the same fossil fuels that make their existence and protest possible). Others don’t want a pipeline cutting across their favorite horse pasture. Ruins the look, ya know. There have been a blizzard of lawsuits and legal actions to try and stop both projects (see Corrosive Use of Legal System Attempts to Stop M-U Pipelines). However, antis have learned if they can pressure, coerce or otherwise threaten environmental agencies, that can be the most effective strategy of all. It has certainly worked in New York, where our Dept. of Environmental Conservation, bowing to political pressure, has (so far) blocked three urgent/critical pipeline projects. Virginia antis are hoping for a repeat there. If they can only pressure the DEQ into blocking or delaying ACP and MVP, it would give new meaning to their pathetic lives…
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    Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?

    In a disappointing, but perhaps not all that unexpected decision (full copy below), the U.S. Court of Appeals for the Second Circuit on Friday ruled against the Constitution Pipeline and their lawsuit against the Cuomo-corrupted New York Dept. of Environmental Conservation (DEC). The DEC dithered, for years, on a decision about whether or not to grant stream-crossing permits (Section 401 permits, a federal Clean Water Act thing) to the Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. The Federal Energy Regulatory Commission (FERC) authorized the project in 2014. Since that time the DEC delayed, and eventually denied permits for the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). So the Constitution (being built by Williams) sued the DEC in federal court (see Constitution Pipeline Case Goes to Court in 2 Weeks, Briefs Filed). We had hoped that the court would grant Constitution the right to commence building. But they didn’t. So now what? There are three options left for Constitution: (1) appeal the decision to the U.S. Supreme Court, (2) file a new case with the D.C. Circuit Court of Appeals (a different court), or (3) request FERC take matters into its own hands by deciding the DEC took too long (which would probably be challenged at the D.C. Circuit). The D.C. Circuit Court of Appeals is a different court than the Second Circuit that just ruled. Our best guess? Williams will take option #3 and ask FERC to overrule NY DEC and grant the permit themselves…
    Read More “Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?”

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    Rover Pipe Ready to Flow! Seeks FERC Permission for Aug 31 Start

    Click for larger version of Rover map

    While the Rover Pipeline remains in regulatory limbo with some of its construction, the vast majority of the pipeline as it snakes across Ohio is already done, or will be within the next few days. On Friday, Rover made an official request with the Federal Energy Regulatory Commission (FERC) to begin flowing natural gas through Phase 1A of the pipeline by August 31st. Phase 1A is three primary areas in Ohio: (1) the Cadiz Lateral, which is 3.5 miles of 30-inch diameter natural gas pipeline in Harrison County; (2) Supply Connector Line A, which is 18.6 miles of single, 42-inch diameter natural gas pipeline from the Cadiz tie-in in Harrison County extending north to Mainline Compressor Station 1 and the interconnection with Mainline A in Carroll County; and (3) Mainline A, which is the bulk of the new pipeline through OH–190.9 miles of single, 42-inch diameter natural gas pipeline originating at the Mainline Compressor Station 1 in Carroll County and terminating at the Defiance Compressor Station in Defiance County. In addition, Rover asked that the Panhandle-Rover Interconnect be turned on a few days ahead of the 31st so the gas will be ready to flow through the new Rover pipeline. This is (a) great news, and (b) something of a miracle, given the stiff headwinds Rover has faced with the Ohio EPA and FERC over several construction problems in recent months…
    Read More “Rover Pipe Ready to Flow! Seeks FERC Permission for Aug 31 Start”

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    PA Gov. Wolf’s Non-Response Response on Atlantic Sunrise Delays

    Over the past year or more MDN editor Jim Willis has signed numerous petitions supporting the Atlantic Sunrise Pipeline project–but it wasn’t until he signed one at a recent Williams event that the got a response from Pennsylvania Gov. Tom Wolf. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project, most of which will get built in northeast Pennsylvania. The project is ready to begin construction, NOW, but still needs a few permits from the state Dept. of Environmental Protection (DEP). In an attempt to get the DEP (and Gov. Wolf) moving, Williams co-hosted an event in July to pressure the DEP and Wolf into granting final permits (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). As guests entered the event, held at the Shadowbrook Golf Course in Wyoming County, PA, they were asked to sign a petition supporting the project. The petitions were delivered to Gov. Wolf and the DEP. Perhaps signing a paper petition, instead of an online/electronic petition, did the trick. MDN received a form letter email response from Gov. Wolf (below). In his response, Gov. Wolf says he supports pipeline development, but that he also supports “strong regulations” to protect people’s health, water, air, blah-biddy blah blah. It is a masterful example of saying nothing at all, while trying to appear you’re saying something. Here’s what we “heard” in Wolf’s response: Screw you–the project will get approved when it gets approved and I don’t care when that is”…
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    New Group Aims to Counteract Big Green’s Paid Protesters

    The Energy Equipment and Infrastructure Alliance (EEIA) announced last week they have launched “Energy Builders,” a new community-based coalition of workers, families and businesses dedicated to educating friends, neighbors and elected officials about the importance and benefits of energy infrastructure and its ongoing development. Energy Builders came together in reaction to paid Big Green protesters being dropped into local communities spreading fear, misinformation and untruths about new energy delivery projects. Americans deserve the best, safest, most modern and secure energy delivery systems in our communities. Energy Builders promotes that. America is enjoying an energy revolution, where innovation and new discoveries of clean and affordable fuels like natural gas are cutting consumer prices, utility bills, and air pollution. We need to modernize and expand our energy infrastructure and delivery systems to ensure that all families, workers and businesses get their fair share of the rewards. We say, it’s about time to fight back against the paid protesters with a radical (WAY outside the mainstream) agenda…
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    Marc/Utica Pipeline Troubles Led to Goldman Sachs Losing $100M

    Yes, lack of pipelines in the Marcellus/Utica does hurt many people and businesses. When drillers can’t get their product to markets that fetch higher prices, the existing markets where they sell becomes saturated and the price drops. That means less money in royalty payments for landowners, less money in the pockets of drilling companies, less drilling until prices go up again, fewer jobs, less tax revenue flowing to the state and municipalities. Etc. You get the idea. It also can impact those who trade natural gas futures. Ginormous investment bank Goldman Sachs markets and trades natural gas–one of the world’s biggest natgas traders. The company “bet wrong” on which way the price of gas would go in the Marcellus/Utica, believing it would go higher with projects like Rover Pipeline coming online. Instead, Rover and other projects in our region hit obstacles and delays. And the price of gas stayed low. It cost Goldman $100 million this spring–turning in the worst performance ever for its commodities trading unit. Yes, we understand, it’s hard to shed a tear for a big company like Goldman. After all, they were rolling the dice in the Wall Street casino. Our point remains: When pipelines don’t get built, there’s a very real cost associated–a cost that ripples throughout the economy from the biggest players (Goldman) to the smallest players (landowners)…
    Read More “Marc/Utica Pipeline Troubles Led to Goldman Sachs Losing $100M”

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    The Legal Dance Between States and FERC in Pipeline Approvals

    MDN has enthusiastically covered the story of Millennium Pipeline’s challenge of the New York Dept. of Environmental Conservation’s (DEC) refusal to (so far) grant a federal Clean Water Act stream crossing permit for a short, 7.8-mile pipeline from Millennium to natgas-fired electric plant currently under construction in Orange County, NY. States are given a year to respond to a request for such a permit, and the DEC was long past that date. So Millennium took the DEC to court–the U.S. Court of Appeals for the District of Columbia Circuit. In June the court dismissed the lawsuit by Millennium, which at first blush may seem like a blow. But it was the reasoning and opinion of the judges in dismissing the case that will change everything in New York. The judges said there is no case because if, as Millennium says, the DEC is denying the water permits, the Federal Energy Regulatory Commission (FERC) itself has the power to jump back in and simply override NY DEC and issue the permits (see DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay). Millennium took the judge’s advice and filed a request with FERC to do just that (see Showdown: Millennium Asks FERC for Permission to Ignore NY DEC). We’re now waiting the outcome of that request. Actually, the DEC said it has until the end of this month, August, to deliver the permit–so perhaps they will do it to avoid losing their power. How does these matters get resolved between states and FERC? Why do the Appeals Courts get involved when there is a dispute? Does the state have more than just a rubber-stamp approval role when it comes to issuing stream crossing permits? A well-written article from an energy attorney explains the process (something we found very helpful in our own understanding of how these things work)…
    Read More “The Legal Dance Between States and FERC in Pipeline Approvals”

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    The Many Types of Skilled Trades Jobs Needed to Build Pipelines

    The Oil and Gas Industry Labor-Management Committee, led by the American Petroleum Institute (API) and North America’s Building Trades Unions, released a study this week on union pipeline employment across the county. The study outlines the many (many!) different types of jobs involved in building pipelines. You may think it’s just welders and their assistants. No way. It’s FAR more than that. Skilled tradespeople that work on pipelines include: boilermaker, carpenter, electrician, instrumentation technician, insulator, ironworker, construction laborer, millwright, operator, painter, scaffold builder, welder, and plumber, pipefitter, and steamfitter. Of special interest, however, are four occupations that traditionally play central roles in pipeline crews. Three are among the trades listed above: operators (i.e. operating engineers), construction laborers, and plumbers/pipefitters/steamfitters. The fourth is “drivers,” the occupation responsible for moving people and equipment around and between job sites. Now that the Federal Energy Regulatory Commission (FERC) has a quorum, pipeline projects will start getting approved and all of the jobs above, in the Marcellus/Utica, will pick up. Below is a copy of the full report, titled “Skilled Trades Employment in the Pipeline Industry: 2006-2015″…
    Read More “The Many Types of Skilled Trades Jobs Needed to Build Pipelines”

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    New Pipelines Raise Gas Prices for M-U Drillers by 30% in 2017

    Pipelines make a HUGE difference in the price drillers can get for their gas. When more pipelines get built to haul gas out of an over-saturated/producing area, like the Marcellus/Utica, the higher the price drillers can get for their gas. It’s simple Economics 101. Right now we have too much supply and not enough demand. When pipelines start flowing our gas to other markets, it the over-supply goes to places where there’s not enough supply and prices go up. This is not just theory. It’s fact. Our favorite government agency, the U.S. Energy Information Administration, has done an analysis of the price fetched for Marcellus/Utica gas for the first seven months of 2017 versus the same period in 2016. Extra/new pipeline capacity has come online in the first half of 2017. The EIA found that in the first seven months of 2016, our gas averaged a sale price of $0.76 below the benchmark Henry Hub price. In the first seven months of 2017, our gas averaged a sale price of $0.53 below the Henry Hub. The gap is narrowing year over year. That 53 cent price is a 30% improvement over last year. So yes, pipelines make a HUGE difference in the price of natural gas!…
    Read More “New Pipelines Raise Gas Prices for M-U Drillers by 30% in 2017”

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    Pittsylvania County Decides to Obey Fed Law re Mountain Valley Pipe

    Once upon a time it was a given that local officials (state, county, township) would obey federal laws. It’s what responsible adults do. You obey the law, even if you don’t agree with or like the law. If you don’t like the law, you work to get it changed. Ignoring the laws you don’t like is a prescription for anarchy and the end of civilized rule (a descent into tyranny). When local officials, like those in Pittsylvania County, VA willingly, enthusiastically obey the law these days (as it relates to federally-approved pipelines), it’s the exception rather than the rule. It’s noteworthy. Such is the post-Obama world we now live in. Don’t like a law? Ignore it. Break it. Subvert it. But not in Pittsylvania. Tuesday night the Pittsylvania County Board of Supervisors discussed the legal “wrangling” over easements and eminent domain for Mountain Valley Pipeline, a $3.5 billion, 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County. The Board was in agreement: this pipeline is a GOOD thing, and easements for it in Pittsylvania are bound and governed by federal law–not local or state laws. Residents and their representatives on the county board are not free to violate those laws. What breath of fresh Virginia mountain air!…
    Read More “Pittsylvania County Decides to Obey Fed Law re Mountain Valley Pipe”

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    Corrosive Use of Legal System Attempts to Stop M-U Pipelines

    Constant frivolous lawsuits against legal, legitimate businesses performing a valuable service for society is having a corrosive effect on our legal system. That’s the thought that hit MDN as we read, yet again, about lawsuits and actions against pipelines in Virginia and West Virginia. In Virginia, radicals from the Blue Ridge Environmental Defense League are pressuring the state Attorney General to get involved to try and stop Dominion’s Atlantic Coast Pipeline–a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. In West Virginia, the Sierra Club and several other far-out-on-the-left fringe groups are suing the state Dept. of Environmental Protection for having the audacity to evaluate and then approve the Mountain Valley Pipeline project there. Mountain Valley is a $3.5 billion, 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County. This ongoing barrage of lawsuits and actions are meant to delay these projects–to give antis more time to whip up opposition and to figure out how to legally (or illegally) stop them. Yes, antis often engage in illegal activities when they disagree with a lawful activity, like building a pipeline. All of these legal machinations tie up our courts and, in our opinion, corrode our legal institutions, causing irreparable harm to pipeline companies. It’s time to fight back and hold these groups (and individuals) accountable. Make them PAY (money) for their strategy of delay. Only when we hold people accountable for their actions will this mess stop…
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    Energy Transfer Floats 54M New Units, Looks to Raise $1 Billion

    Energy Transfer Partners (part of Energy Transfer Equity) is the company that built the Dakota Access Pipeline (now flowing, thankfully). They are also the pipeline company building both the Rover Pipeline in Ohio and Michigan, and the Mariner East 2 natural gas liquids pipeline from eastern Ohio across Pennsylvania to the Philadelphia area. Big company, big projects. ETP recently sold off 32% of the Rover project to Blackstone for $1.57 billion (see Energy Transfer Sells 32% Ownership in Rover Pipe to Blackstone). It takes a LOT of money to build these pipeline projects. Sometimes companies like ETP borrow via issuing debt (“notes”). More often they sell equity–or ownership. Earlier this week ETP announced is offering a new round of units (think shares of stock). No doubt the money will be used to help fund projects including Rover and ME2. ETP is offering 54 million units hoping to get $18.65 per unit–or a cool $1 billion…
    Read More “Energy Transfer Floats 54M New Units, Looks to Raise $1 Billion”

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    Mountain Valley Pipe Pushes Back Against ‘Emasculate FERC’ Lawsuit

    Mountain Valley Pipeline (MVP) is not taking a ludicrous, outrageous lawsuit by anti-pipeline residents from West Virginia and Virginia lying down. They are fighting mad as recent court filings show. MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. A lawsuit was filed in federal court at the end of July to block the MVP project (see New Lawsuit Against Mountain Valley Pipe Seeks to Emasculate FERC). The lawsuit, filed in U.S. District Court in Roanoke, VA, seeks to block the Federal Energy Regulatory Commission (FERC) from doing its job by issuing a certificate to approve MVP. The plaintiffs claim FERC would be violating the U.S. Constitution by approving a private project that “takes” private land without just compensation. The plaintiffs maintain that according to the Constitution, land can only be taken for “public use” and that the pipeline is for private use, not for the public good. That’s the claim. As we said at the time, “If these virulent antis win this case, it would emasculate FERC–take away its authority to approve major interstate pipeline projects.” MVP in a court filing last Friday (full copy below) said pretty much the same thing. MVP says in their filing the lawsuit asks the court to invalidate the Natural Gas Act–the law of the land–which would have the effect of stopping all pipeline projects being built. The outcome of this lawsuit is already preordained. The lawsuit will get tossed. The only question is, how fast?…
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    Trump Signs Exec Order to Speed Up Pipelines, Infrastructure Work

    Pipeline companies face enormous governmental roadblocks when it comes to building new pipelines. “Red tape” doesn’t begin to describe the hassles they face in going from government agency to government agency in order to build an interstate pipeline. Yesterday, with the stroke of a pen, President Trump helped correct that situation. Trump signed a new executive order that will speed up approvals of permits for highways, bridges, pipelines and other major building efforts by shortening the time for environmental reviews. Trump’s executive order (full copy below) revokes an idiotic Obama executive order aimed at reducing exposure to flooding, sea level rise and other consequences of mythical climate change. Obama intentionally screwed things up and created long delays. Trump is fixing it. The American Petroleum Institute and business groups applauded the new EO and said it will directly translate into more jobs…
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    Big Green Groups Stage Walkout at PA DEP Atlantic Sunrise Hearing

    Last night the Pennsylvania Dept. of Environmental Protection (DEP) held one final public hearing for the Williams Atlantic Sunrise Pipeline project–in Lancaster. As we previously reported, anti-fossil fuel nutters planned to gather prior to the meeting so they could choreograph a “walkout” of the meeting, as a form of protest (see PA DEP to Hold Final Atlantic Sunrise Hearing, Antis Plan Walkout). Indeed that is just what happened. A group of petulant babies got up during the meeting, theatrically put on surgical masks, and walked out. They then held their own meeting outside, to regurgitate the same lies and smears they’ve been spreading for months. Meanwhile, inside the meeting, the adults who remained spoke up about legitimate concerns with the project, which is why the meeting was held in the first place…
    Read More “Big Green Groups Stage Walkout at PA DEP Atlantic Sunrise Hearing”

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    Michigan County Tells FERC NEXUS Won’t Clean Up After Itself

    The Washtenaw County (Michigan) Road Commission has written a letter to the Federal Energy Regulatory Commission (FERC), requesting FERC deny a certificate to build the NEXUS Pipeline because (they claim) NEXUS has bullied them. It seems the Road Commission has been working with NEXUS over the past year to prepare for the pipeline. The Road Commission wants NEXUS to jump through all sorts of hoops, do handstands, backflips, and in general, dance to the Road Commission’s tune. And because NEXUS isn’t willing to bend all the over backwards, the Road Commission is miffed. The Road Commission is the lord of their domain, and no outsider is going to do anything without their permission. So the Road Commission has run to mommy (FERC) and started bawling that NEXUS are meanies and they won’t pick up after themselves and they’re just BULLIES. So FERC should just go ahead and shut the whole $2 billion, 255-mile interstate pipeline project down (that will run from Ohio through Michigan)–because of one whiny Road Commission in one county…
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