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

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”

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
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…
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?…
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
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…
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
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
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…
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 
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…
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…
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
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
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