Pipelines

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    6 Towns, 3 Schools in Jefferson Co., OH Split $5M/Yr in Pipe Tax

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    With all of the negative talk about pipelines and opposition to pipelines and pipelines will kill ya and pipelines are from the devil, you may have overlooked the fact that some areas bow down and kiss the ground and thank their lucky stars to have a pipeline. One of those places is Jefferson County, OH. Six townships and three school districts in Jefferson County will be part of taxing districts to share in $5 million a year in public utility taxes paid by the Texas Eastern Transmission pipeline (TETCo), a major interstate pipeline system. This is newfound money that school districts and towns are starved for in this era of budget cuts. And the money doesn’t come out of taxpayers’ pockets. It comes from private industry–from a pipeline flowing clean-burning natural gas. In a situation not unlike Warren Beatty giving Faye Dunaway the wrong envelope, TETCo gave the wrong information to the Ohio Department of Taxation about which taxing districts the pipeline passes through. So some schools and towns that were initially elated and now deflated, and others have hit the lottery. Frankly, it’s too bad the pipeline doesn’t go through all of them!… Read More “6 Towns, 3 Schools in Jefferson Co., OH Split $5M/Yr in Pipe Tax”

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    Radical Antis Ask FERC to Stop ET Construction on Rover Pipeline

    Radical environmental groups are seeking to stop the Energy Transfer Rover Pipeline project by using recent violations as leverage. The FreshWater Accountability Project, begun in Ohio after the Muskingum Watershed Conservancy District signed agreements to sell water to the shale industry, along with Michigan Residents Against the ET Rover Pipeline, filed a complaint with the Federal Energy Regulatory Commission (FERC) on Wednesday asking the federal agency to stop all construction on Rover. The request will almost certainly go nowhere–but Rover’s own actions have opened the door to this action. We understand that accidents happen when drilling horizontally underground for pipelines and that sometimes you get an “inadvertent return” (leak) of drilling mud slipping up to the surface. But it’s tough to explain away a 2 million gallon leak (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). It’s also hard to ignore storm water runoff fouling farmers’ fields where Rover is digging trenches (see OEPA & Rover at Odds Over Storm Water Runoff, “Fine” Now $714K). It smacks of a rush job, and that gives the other side an opening in their quest to stop fossil fuel infrastructure projects like Rover… Read More “Radical Antis Ask FERC to Stop ET Construction on Rover Pipeline”

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    Local Lancaster Businesses Ready to Profit from Atlantic Sunrise Pipeline

    When (not if) the Atlantic Sunrise Pipeline begins construction this summer in Lancaster County, PA, area businesses plan to take advantage of the economic boon that will arrive along with some 250 workers who will build it. Atlantic Sunrise is a $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. Construction in Lancaster County will last approximately nine months and is projected to inject $75 million in the local economy. What kinds of businesses will benefit? Some include “housing, rental equipment, food sources, welding supplies, waste disposal, construction material, security, fuel, water trucks, concrete services, buses and transportation, auto repair, laundry services, drain tile work and hauling services.” And that’s only some of the services needed. Campgrounds are another business expected to experience a big uptick in demand. According to Williams spokesman Christopher Stockton, “We are encouraging all our construction contractors to utilize local service providers as much as possible.” That’s good news for local businesses. Here’s how local businesses in Lancaster County (and elsewhere) can sign up to get their piece of the Atlantic Sunrise action… Read More “Local Lancaster Businesses Ready to Profit from Atlantic Sunrise Pipeline”

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    Dealing Honestly with Issue of Eminent Domain for Pipelines

    Life is messy and complex. Nowhere is that more true than with the issue of using eminent domain to “condemn” a property, forcing the landowner to allow a pipeline company to cross the property with a decades-long (often extending past the lifetime of the current landowner) lease on the land. Sometimes landowners just don’t want a pipeline. We get it. MDN’s extended family owns rural property (a small farm), so we understand the objections. What if you plan to one day build a new barn in an area where a pipeline is set to run? No can-do. However, pipelines that cross a field or a pasture are (mostly) fine–you can grow back hay and grass and a few years after a pipeline is in the ground, you have use of that land again. You can even plant crops over top of a pipeline. Even though the presence of a pipeline can yield a number of benefits, money for the landowner being the chief benefit, there are drawbacks. But let’s put a different hat on. What if 9 out of 10 landowners along a pipeline’s route in a particular town have signed and welcome the pipeline, but one landowner smack in the middle of the others objects? And what if there’s no feasible re-routing to be done? Should the 9 suffer because of the actions of the one? Tough question. And what about all of the people who will benefit from the gas flowing through the pipeline? Should they suffer because one landowner objects? Again, tough question. For us, property rights are sacrosanct. You don’t tell me I can’t allow a pipeline or drilling–and I don’t tell you that you must allow it. What’s fair is fair. How do we resolve these issues?…
    Read More “Dealing Honestly with Issue of Eminent Domain for Pipelines”

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    NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard

    For the past few years MDN has had an eye on a trend we find exciting–“virtual pipelines”–by which we mean facilities that are located along a pipeline that compress natural gas (CNG), load it onto tanker trucks, and then distribute that gas to businesses that are not fortunate enough to be located near a natgas pipeline. With irrational opposition to pipelines rampant, virtual pipelines are a good alternative. We were first alerted to this trend when International Paper’s Ticonderoga mill in northern New York, near the Vermont border, opted for a virtual pipeline from NG Advantage, back in 2015 (see NY Paper Plant Opts for “Virtual” NatGas Pipeline Over Real One). NG Advantage has established a presence throughout New England, most recently adding Maine to their delivery options (see NG Advantage’s “Virtual” NatGas Pipeline to Maine Begins Flowing). In January, a competitor of NG Advantage–Xpress Natural Gas (XNG) set up a virtual pipeline in Susquehanna County, PA–not far from MDN HQ (see Major CNG Virtual Pipeline Coming to Susquehanna County, PA). Imagine our surprise–and delight–to find out that NG Advantage wants to build a virtual pipeline about 9 miles from MDN HQ–along the edge of Binghamton in an adjacent suburb called Port Dickinson! This one flew mostly under the radar. NG Advantage has proposed a new compressor station and tap into the Millennium Pipeline where it crosses the Chenango River. They already have three businesses lined up to buy CNG from the project. Port Dickinson approved the project last night, but it’s still not a done deal yet…
    Read More “NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard”

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    Poll: Majority of Voters in VA, WV, NC Support Atlantic Coast Pipe

    Leftist anti-fossil fuelers are only too happy to poll anything and everything–except for what really matters. How do the VOTERS in Virginia, West Virginia and North Carolina feel about the Atlantic Coast Pipeline (ACP)? ACP is Dominion Energy’s $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The Consumer Energy Alliance (CEA), the “voice of the energy consumer,” set out to answer the question: How do voters feel about ACP? In a poll commissioned by ACP, a majority of voters in all three states support the project–by an overwhelming majority. ACP hired Hickman Analytics Inc., a “Democratic-leaning,” Maryland-based firm to do the polling. Harrison Hickman, founder of the firm, said, “By any measure, whether it’s a policy matter or a voting matter, the pipeline has widespread support.” That’s something you won’t read in most news outlets. Here’s the results of the poll… Read More “Poll: Majority of Voters in VA, WV, NC Support Atlantic Coast Pipe”

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    Moody’s: Canadian Companies Still in Hunt for More US Pipelines

    Last year Canadian companies went on a midstream (pipeline) buying spree, snapping up major U.S. companies. In March 2016, MDN reported that Canadian midstream giant TransCanada, lusting for a bigger piece of the Marcellus/Utica pipeline pie, decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). That deal closed in July (see TransCanada and Columbia Pipeline Tie the Knot Today). Then in September, MDN reported Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). According to a new report by Moody’s Investors Service, last year Canadian companies spent $89 billion to snap up utility and pipeline companies across the U.S. The report’s authors say they “anticipate more” such purchases this year… Read More “Moody’s: Canadian Companies Still in Hunt for More US Pipelines”

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    OEPA & Rover at Odds Over Storm Water Runoff, “Fine” Now $714K

    More trouble for Energy Transfer and the Rover Pipeline project as the company is working against a tight deadline to get the $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that traverses Ohio up and running this year. It appears as if the Ohio Environmental Protection Agency (OEPA) is hellbent on picking a fight with the project. Perhaps some of OEPA’s criticisms are justified–perhaps some are not. We’ll give you the “lay of the land” (pun intended) as we see it. Early on Rover appeared to rush too much, resulting in numerous drilling mud spills in locations where Rover was drilling underground to avoid creeks and rivers and other structures. One of those spills dumped 2 million gallons of drilling mud (i.e. bentonite) in a wetland next to the Tuscarawas River (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Following that accident and other accidents where mud was spilled, the OEPA announced it had fined Rover $431,000. As it turns out, that OEPA claim, made by OEPA spokesman James Lee, was a little white lie (see Turns Out OEPA & Columbus Dispatch Were Lying – Rover NOT Fined). Apparently the OEPA has “suggested” such a fine, but a long process now ensues where such a fine (and the alleged infraction) are negotiated. So no, no fine has actually been assessed, yet. The James Lee from the OEPA is back, partnering up his favorite mainstream mouthpiece–the Columbus Dispatch–to claim that Rover did not plan storm water management properly and that Rover’s poor planning has resulted in heavy storm water runoff into farmers’ fields where Rover is digging trenches. So OEPA is upping their $431,000 “fine” (that’s not actually a fine, yet) to $714,000! Here we go again… Read More “OEPA & Rover at Odds Over Storm Water Runoff, “Fine” Now $714K”

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    Time to Boycott US Bancorp for Anti-Pipeline Discrimination

    U.S. Bancorp (aka U.S. Bank) is the fifth largest bank in the United States. Headquartered in Minneapolis, Minnesota, U.S. Bancorp has over 3,000 branches, mostly in the Midwest. The bank recently released an “Environmental Responsibility Policy” (full copy below). In it, the bank says this with respect to financing pipeline projects: “The company does not provide project financing for the construction of oil or natural gas pipelines. Relationships with clients in the oil and gas pipeline industries are subject to the Bank’s enhanced due diligence processes that are outlined further below.” This is TOTALLY unacceptable. The Energy Equipment & Infrastructure Alliance (EEIA) sent an open letter (copy below) to all officers, directors and shareholders calling on the institution to reverse its discriminatory anti-pipeline policy. MDN is a little more impolitic. We’re calling for anyone with a U.S. Bancorp checking, savings, commercial, or any kind of account, to close it. It’s time businesses like U.S. Bancorp are made to pay for this kind of wrongheaded activism…
    Read More “Time to Boycott US Bancorp for Anti-Pipeline Discrimination”

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    Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream

    Noble Energy dropped a bombshell that it has sold its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to “an undisclosed buyer” (see Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?). MDN exclusively shared the news of exactly the who the “undisclosed buyer” is: HG Energy (headquartered in Parkersburg, WV), backed with money from investment firm Quantum Energy Partners. HG is a “portfolio company” of Quantum. The press release announcing the acreage/asset sale went to great lengths to stress that Noble’s half operating interest in the CONE Midstream pipeline gathering system was not part of the deal. CONE is a 50/50 joint venture between CONSOL Energy (the “CO” part of the name), and Nobel Energy (the “NE” part of the name). CONE was Noble’s final connection to our region. No more. Yesterday, Noble Energy announced they’ve sold their 50% stake in CONE to Quantum Energy Partners for $765 million. This time Noble went ahead and announced the buyer, perhaps figuring MDN would find out and blab it any ;-). Here’s the announcement that Noble Energy has left the Marcellus/Utica building…
    Read More “Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream”

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    Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline

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    Last year MDN shared details about Shell’s Falcon Ethane Pipeline system–a pipeline with two “legs” that will feed Shell’s mighty ethane cracker plant in Beaver County, PA (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Before the pipeline system had a name (Falcon), Shell had begun the process of signing up landowners to allow the pipeline to cross their property–as far back as February 2016 (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). In January 2017, we reported on Shell’s progress in leasing land for the pipeline (see Shell Leases More PA Properties to Build Ethane Pipeline). This is a further update. Shell has signed an additional seven parcels of property–in Beaver County–bringing the total to 32 easements now secured for the project in Beaver County… Read More “Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline”

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    Platts: M-U Drillers Need to Double Rigs to Fill Pipelines in ’17

    Platts senior energy analyst Luke Jackson yesterday posted a Platts Snapshot titled, “New Northeast US Gas Pipelines Will be Hard to Fill.” Provocative title. It’s a video. Below is a transcript of the video. In it, Jackson says according to their analysis that drillers in southwestern PA and eastern OH and the northern panhandle of WV will struggle, but eventually succeed, in producing enough natural gas to fill new pipelines coming online this year. But they won’t be able to fulfill their obligations until perhaps December 2017. That is, Antero, Range Resources and Ascent Resources will need to rapidly ramp up drilling–or risk paying for pipeline capacity they’re not using. However, it was Jackson’s comment about pipelines coming online in 2018 and 2019 that really caught our attention. He says in the video: “This new capacity will be nearly impossible to fill, barring a massive ramp in drilling activity, which, per our forecast, is not expected to occur.” So Platts says Marcellus/Utica drillers will not be able to produce enough natural gas to fill all of the new pipelines that will be online by 2019. If we assume the price of natgas goes higher over the next few years (not an unreasonable assumption), what this means is that new drilling is going to ramp up like crazy in the next few years. Buckle up! Here’s the transcript…
    Read More “Platts: M-U Drillers Need to Double Rigs to Fill Pipelines in ’17”

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    New Study: 1 Million New Jobs Coming in Gas/Oil Thru 2035

    A couple of weeks ago the American Petroleum Institute (API) released a new study that shows private investment in U.S. natural gas and oil infrastructure could (and likely will) create over 1 million new U.S. jobs. That is an incredible number! The study also shows that private investment may exceed $1.3 trillion for new oil and natural gas infrastructure. Wow! Over the past five years, U.S. oil and gas infrastructure development proceeded at a rapid pace. Many have wondered whether the trend can continue. API wondered too, so they contracted the experts at ICF to undertake a study that investigates the amount of oil and gas infrastructure development possible in the U.S. through 2035. The result is the report, “U.S. Oil and Gas Infrastructure Investment Through 2035” (full copy below). The report focuses on the amount of infrastructure needed for two different scenarios, a Base Case and a High Case, each of which are plausible scenarios for future market conditions. While the Base Case represents a most likely scenario, the High Case is included to assess infrastructure development in a more robust environment that is fostered by a larger hydrocarbon resource base and more rapid advancements in technology. The study looks at capital expenditures associated with, and the resulting economic consequences of, oil and gas infrastructure development… Read More “New Study: 1 Million New Jobs Coming in Gas/Oil Thru 2035”

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    Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill

    While reviewing documents filed with the Federal Energy Regulatory Commission (FERC) for the Energy Transfer Rover pipeline project, we came across a letter filed by ET yesterday. The letter (full copy below) addresses the recent “inadvertent return” (i.e. major leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see FERC Slaps Rover Pipeline with Stop Drilling Order). In yesterday’s letter, Rover says they have hired a new firm, GeoEngineers, to review all of the plans and data around drilling horizontally underground (horizontal directional drilling, or HDD) in locations where you can’t dig a trench. Rover is also posting GeoEngineers personnel at each HDD location, to help supervise HDD activities. But wait, there’s more! Rover is hiring extra watchers at each HDD location to watch for the first signs of, the first bubble, that indicate drilling mud isn’t staying underground where it belongs. Given all of what Rover is doing (there is more, read it in the letter), Rover then goes on to ask FERC, can Rover please please please drill in two spots where all of the equipment is ready to go? Those spots are Captina Creek in Belmont County, OH, where Rover wants to complete the Clarington lateral, and Middle Island Creek in Tyler County, WV, where Rover wants to complete the Sherwood lateral. Rover argues it will do more harm to the environment to pull down erosion control devices and move equipment out and back in, than if they just went ahead and did the work now. Will FERC agree?…
    Read More “Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill”

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    Private Historic Group Wants Rover to Pay $1.5M/Yr, Rover Says No

    We’re not sure we have the full, 100% story, but we have enough of it to have some righteous anger. In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). The house was not yet on the list of Historic Places, but was on a list of properties under consideration. FERC says Rover should have reported their decision to demolish the house, which landed Rover in hot water with FERC and the Advisory Council on Historic Preservation. How do you fix problems like this one? You pay–of course. Rover agreed to pay out $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office. A total of $1 million is for preservation work in the 18 counties crossed by the pipeline. The rest of the money will be used for projects across the state” (see Rover Pipeline Paying $2.3M for Knocking Down Historic OH House). So Rover didn’t pay a fine. Instead, they paid hush money. A shakedown, with the money going to a PRIVATE nonprofit organization. Yes, the Ohio History Connection Foundation is a private non-profit organization. And they got $2.3 million at the direction of the federal government. Now the history buffs want more. To be precise, they say Rover owes them $1.5 million per year for the next five years. Why? Apparently it’s not related to knocking down the “historic” house, but is some sort of agreement that Rover made with them to cover whatever other damage is done to historic locations during construction of the pipeline. We call it an elaborate shakedown. “Those pipeline companies have more money than God. Let’s grab some of it.” Ohio History Connection says Rover has missed its first payment, so they went whining to FERC. Rover is disputing Ohio History Connection’s claim that it owes them one red cent more… Read More “Private Historic Group Wants Rover to Pay $1.5M/Yr, Rover Says No”

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    Dominion Contacting First Responders re Atlantic Coast Pipeline

    Atlantic Coast Pipeline (ACP), Dominion Energy’s $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, has begun an outreach program with Local Emergency Planning Committees in several West Virginia counties. The pipeline is not yet fully approved by the Federal Energy Regulatory Commission (FERC). Dominion expects that approval sometime this fall (see Dominion CEO Says Atlantic Coast Pipeline is Full Speed Ahead). However, Dominion and ACP would not be wasting their time and the time of local first responders with meetings, if they didn’t believe the project is already in the bag. So we take these meetings as a good sign that ACP is on the way… Read More “Dominion Contacting First Responders re Atlantic Coast Pipeline”