Pipelines

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    FERC Slaps Rover Pipeline with Stop Drilling Order

    You can’t see we didn’t warn Rover Pipeline. In our story yesterday about the Ohio EPA’s frustration with Rover over regular spills of drilling mud (and other violations), we pointed out that the OEPA’s language is “Not good news for Rover, when one of the main state regulators (that can stop the project) is leveling criticisms like that” (see Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues). We also said, in the last sentence of that post, “Rover needs to get this situation under control before an emergency stop work order is slapped on them.” Such an order, more or less, has now been issued by the Federal Energy Regulatory Commission (FERC). Yesterday FERC sent a letter (copy below) to Rover telling the pipeline it can no longer drill horizontally underground for the pipeline in some locations–until it complies with certain measures outlined by FERC and gets FERC staff sign-off every step of the way. In other words, Rover has likely just been delayed–due to its own haste and by not displaying the proper contrite attitude toward the OEPA. No one to blame but themselves…
    Read More “FERC Slaps Rover Pipeline with Stop Drilling Order”

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    Williams Tries an End-Run Around NY DEC for Constitution Permit

    Does Williams have an “ace in the hole” with respect to the Constitution Pipeline? The Constitution, a ~$900 million, 124-mile pipeline planned to run from Susquehanna County, PA into Upstate New York, was approved by the Federal Energy Regulatory Commission (FERC) in December 2014 (see FERC Issues Final Approval for Constitution Pipeline in PA/NY). After a year and a half of delays from the New York State Dept. of Conservation (DEC), an organization now corrupted by Gov. Andrew Cuomo, the DEC capriciously denied stream crossing permits for the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Williams, the builder of the project, subsequently sued in federal court to force the state to issue the permits. The outcome of that lawsuit is due any month now (see Constitution Pipeline Still Waiting on “Biggie” Court Decision). However, Williams is now attempting another strategy, parallel to their lawsuit, that may grant them game, set and match. The stream crossing permits withheld by the NY DEC are permits issued under Section 401 of the federal Clean Water Act. The DEC has the (delegated from the federal government) responsibility for issuing or denying Water Quality Certification (WQC) under Section 401. What if the feds were to snatch back that responsibility for themselves? Williams is asking the Trump White House to have the Army Corps of Engineers step in and grant the WQC for the Constitution under Section 401–as a replacement or substitute for the DEC. Such a move is allowed under the law–if a state refuses to act within a “reasonable” time period. If the Army Corps does step in and grant the Constitution a WQC, it would, in a word, emasculate the DEC and strip them of a great deal of their power–something we’ve previously warned about (see Bloomberg Predicts Court Will Strip NY’s Right to Stop Constitution). Will it work?… Read More “Williams Tries an End-Run Around NY DEC for Constitution Permit”

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    Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues

    Rover mud spill in April

    The Ohio Environmental Protection Agency (OEPA) is frustrated with Energy Transfer and its management of constructing the ~$4 billion Rover Pipeline through the state. As MDN reported in April, Rover spilled some 2 million gallons of non-toxic drilling mud (i.e. bentonite) in three separate incidents (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp and Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid). We know that the biggest spill happened in Stark County, and another sizable spill in Richland County. It appears spilling some mud wasn’t the only environmental violation. The OEPA has just assessed a $431,000 fine against Energy Transfer for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday.” The latest mud spill happened on Monday–200 gallons in Harrison County. OEPA Director Craig Butler said, “All told, our frustration is really high. We don’t think they’re taking Ohio seriously…Normally when we have…a series of events like this, companies respond with a whole lot of contrition and whole lot of commitment. We haven’t seen that. It’s pretty shocking.” Not good news for Rover, when one of the main state regulators (that can stop the project) is leveling criticisms like that… Read More “Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues”

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    Trump Nominates 2 New FERC Commissioners – Powelson & Chatterjee

    Finally! President Trump has proffered two candidates to fill the (soon to be) four empty slots as commissioners for the Federal Energy Regulatory Commission (FERC). The FERC board is supposed to have five commissioners. It currently has two, and soon to be one. Three commissioners are needed to fulfill a quorum, allowing votes to be taken on important infrastructure (i.e. pipeline) projects. A number of vital Marcellus/Utica projects are on hold due to lack of quorum. The not-so-secret rumor running around Washington since March was that Trump would nominate Kevin McIntyre, Neil Chatterjee and Robert Powelson (see Breaking: Kevin McIntyre, Neil Chatterjee are Trump Picks for FERC and Names Mentioned for 3rd FERC Post, Incl. PA’s Powelson). Kevin McIntyre is an attorney with the Jones Day law firm. Neil Chatterjee is a senior energy adviser to Senate Majority Leader Mitch McConnell. And Rob Powelson is a member of the Pennsylvania Public Utilities Commission, and currently the president of the National Association of Regulatory Utility Commissioners (NARUC). The rumor was that McIntyre would be put forward as chairman of FERC. Yet, when Trump finally nominated, McIntyre was not in the mix. Will he come along later? Is he now off the list? At least with Chatterjee and Powelson, FERC will once again have a quorum. When? Both candidates have to be vetted by the Senate. If everything goes smoothly, a final vote could happen by early June. Unless the Democrats try to slam the breaks on… Read More “Trump Nominates 2 New FERC Commissioners – Powelson & Chatterjee”

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    6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe

    As we reported last week, six anti-pipeline residents living near where the Mariner East 2 pipeline will pass asked the Middletown (Delaware County, PA) town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. At a meeting earlier in the week, town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped up and agitated by Big Green groups, was rumored to be considering a lawsuit against the pipeline to force it to conform with Middletown’s ordinance. It’s no longer a rumor. The amped up antis, spurred on and using lawyers from said Big Green groups, filed a lawsuit in the Delaware Court of Common Pleas on Friday… Read More “6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe”

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    Federal EPA Writes a PennEast Pipeline Love Letter to FERC

    Once upon a time, during the Obama reign of terror, the out-of-control Environmental Protection Agency (EPA), as headed by the odious Gina McCarthy, blasted the PennEast Pipeline project (see Obama EPA, National Park Service Try to Rain on PennEast Parade). The Obama/McCarthy EPA made an outrageous claim: That building PennEast “may” end up causing arsenic in groundwater supplies. Totally bogus. And pathetic. The Federal Energy Regulatory Commission (FERC) didn’t fall for EPA’s arsenic and old lace. They approved the project in April (see FERC Issues Favorable Final EIS for PennEast Pipeline Project). Along with the change in the presidency has come some clear-headed thinking in Washington, DC–including at the EPA. Make no mistake–the EPA is still overly populated with Obamadroids that need to be canned. However, there’s enough of a change at the EPA that the agency has just sent what we would call a love letter to FERC, about PennEast. In it, the EPA says, “FERC’s efforts to consider and actively engage EPA to discuss comments, which resulted in improved or modified documentation provided in the [Final] EIS and improved safeguards for protection of human health and the environment.” And because of that, “many of our concerns and objections [to PennEast] have been or will be addressed.” In other words, everybody has now kissed and made up. EPA is feelin’ good about PennEast. And so are we…
    Read More “Federal EPA Writes a PennEast Pipeline Love Letter to FERC”

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    NY DEC Grants Water Permits for Atlantic Bridge Pipeline Project

    Very good news for Spectra Energy’s Atlantic Bridge project in (of all places) New York State. In January the Federal Energy Regulatory Commission (FERC) gave its final stamp of approval for Atlantic Bridge (see FERC Approves Atlantic Bridge Project for New England/Canada). Atlantic Bridge will beef up capacity on the Algonquin Gas Transmission and Maritimes & Northeast Pipeline systems–to move more Marcellus/Utica gas to New England and Canada. Even though FERC “approved” Atlantic Bridge, Spectra Energy must still ask for “Mother May I?” permission to begin construction on specific, individual portions of the project. FERC granted Spectra Energy permission to begin construction on all of their requests in Connecticut in March (see FERC Grants Atlantic Bridge Pipe OK to Begin CT Construction). However, the part of the project located in New York State was stalled, waiting for a water crossing permit from the Cuomo corrupted Dept. of Environmental Conservation (DEC). Miracle of miracles–the DEC has granted those permits… Read More “NY DEC Grants Water Permits for Atlantic Bridge Pipeline Project”

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    Seneca County, OH – Where All Forms of Energy Come Together

    Generally speaking, the western side of Ohio is seeing a lot of activity with new solar and wind installations. And the eastern side of the state is seeing a lot of activity with shale drilling and natural gas pipelines. But there is one county, Seneca County (slightly left of center, in the northern part of the state) where both renewable projects like solar and wind, and fossil fuel projects like pipelines, are both active. And that means landowners in Seneca County are being bombarded with offers from solar, wind, pipelines and electric lines. Some sage advice from the Ohio Farm Bureau Federation for landowners: hire a lawyer before you sign anything… Read More “Seneca County, OH – Where All Forms of Energy Come Together”

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    NFG Update – Getting “Lousy Treatment” in NY, Threatens to Leave

    National Fuel Gas Company (NFG), headquartered in Western New York State, is making noises (threats) that Gov. Andrew Cuomo should be very concerned about. NFG covers the full span of the oil and gas business–from upstream (with its wholly-owned drilling subsidiary Seneca Resources), to the midstream (with wholly-owned subsidiary Empire Pipeline) to downstream (NFG’s natural gas utility service to 740,000 customers in NY and PA). It’s a big company that generates a lot of jobs and revenue for New York State. Yet NY is metaphorically crapping all over NFG–and the company is signaling its willingness to retaliate by leaving. No, not move the company HQ, or sell off its gigantic utility business. Nothing of that sort (yet, anyway). But NFG CEO Ronald Tanski said on an earnings call last Friday that NFG is “getting lousy regulatory treatment in New York State” and that “Given this type of regulatory treatment in the state, we have to take a serious look at our ability to achieve any reasonable growth in New York.” Translation: We’ll stop launching new projects that invest billions in the Empire State, and instead invest that money and the jobs it creates in PA and other states. The “lousy treatment” NFG is getting is related to NY’s corrupt Dept. of Environmental Conservation decision to deny it permits to build the Northern Access Pipeline (see NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling”). NFG has taken the Cuomo DEC to court to try and get the DEC’s capricious pipeline decision overturned. However, the damage is now done. NFG is threatening to invest elsewhere–and we take them at their word. This is not an empty threat…
    Read More “NFG Update – Getting “Lousy Treatment” in NY, Threatens to Leave”

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    TransCanada Sells Iroquois Pipeline to Itself, Part of $765M Deal

    Last week TransCanada announced they are “selling” their interest in the Iroquois Gas Transmission pipeline and a second pipeline, Portland Natural Gas Transmission System (PNGTS), to a subsidiary of TransCanada for $765 million. Every now and again big energy companies transfer some of their assets to different subsidiary companies, on paper. We say “on paper” because nothing really changes with the management of the assets–in this case two pipelines. However, money does change hands because usually there are different sets of investors for the different subsidiaries. So TransCanada “sold” themselves (different set of investors) these two pipeline systems. Iroquois is majority owned by TransCanada–in two pieces. After the drop down sale, TC PipeLines will own both pieces, representing 61.1% of the Iroquois system. Iroquois is a 416-mile interstate natural gas pipeline extending from the U.S.-Canadian border at Waddington, NY, through New York State and western Connecticut to its terminus in Commack, NY, and from Huntington to the Bronx, NY. The second pipeline part of the transfer deal is PNGTS–an interstate natural gas pipeline company providing natural gas transportation service for gas utilities, paper mills, and electric generation plants throughout New England. Here’s info about the deal, and an overview for each pipeline system… Read More “TransCanada Sells Iroquois Pipeline to Itself, Part of $765M Deal”

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    Energy Transfer 1Q17 – Updates on Rover, Mariner East 2 Pipelines

    Last week Energy Transfer Partners (ETP), the main operating division of Energy Transfer Equity (ETE), released its first quarter 2017 financial and operating update. ETP is the company that built the Dakota Access Pipeline, which was finally completed after Obama was ejected from office–and is right now building the Rover Pipeline. Another division of ETE was, until last month, Sunoco Logistics Partners. In April Sunoco LP was merged into ETP (see Sunoco Logistics Partners Ceases to Exist as of Today). Sunoco LP, now ETP, is building the Mariner East 2 (ME2) pipeline project. So as part of last week’s update, we got mini-updates on two critically important projects for the Marcellus/Utica: Rover and ME2. The Rover chatter indicates all systems are go and they are on track to have the project completed and in-service as far as the Midwest Hub in July, and the rest of the way to Michigan in November. ME2 chatter contained an interesting question and response. An analyst’s question seems to indicate that ETP (the Sunoco Logistics part of it) is considering a joint venture arrangement for the ME2 pipeline project. President & CEO of Sunoco LP (not sure what his title is now) Mike Hennigan was quick to tamp down that speculation. He didn’t deny it, saying the company is having “conversations”–but he did say their focus right now is to finish the darned thing. Get it built…
    Read More “Energy Transfer 1Q17 – Updates on Rover, Mariner East 2 Pipelines”

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    PA Landowner Threatens to Go Up a Tree (Again) to Stop Pipeline

    Elise Gerhart has been up a tree before. You may recall our story about Elise, 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 order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). It ultimately didn’t matter, because Sunoco came back and cut down the few trees they need to cut anyway (see Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees). Eventually law enforcement got around to arresting the daughter, and the mom (who also trespassed during tree clearing). Law enforcement also arrested a serial criminal trespasser/anti who aided and radicalized them. Unfortunately, in a miscarriage of justice, the charges against all three were dropped (see Charges Dismissed Against Tree Sitting Anti in Huntingdon County). That oversight will come back to bite law enforcement, because Elise plans to go up a tree again. Or maybe, since the trees are already cut down, she plans to chain herself to a bulldozer. Who knows. One thing is for sure: Ms. Gerhart and her mom are planning to get themselves arrested when the bulldozers show up to begin digging a trench on the Gerhart’s land… Read More “PA Landowner Threatens to Go Up a Tree (Again) to Stop Pipeline”

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    2nd NEPA County Attracting Business with Locally Produced Gas

    Click for larger version

    MDN has spotted what we believe is a rather ingenious trend in Northeastern Pennsylvania. One of the ongoing “problems” with drilling in gas-rich, rural counties like Susquehanna and Wyoming counties is that the gas gets extracted–and promptly exported out of the region via pipelines. Locals don’t have the option of tapping in to the cheap, abundant, clean-burning source that comes out of the ground beneath them. Susquehanna County has 43,000 residents (11,700 families). The largest “city” in Susquehanna County is the county seat of Montrose, population 1,600 (750 households). It’s just not all that economical to run natural gas pipelines to homes around the county–even though residents live atop an embarrassing riches of natural gas. One company, Leatherstocking Natural Gas, changed all that in early 2014 when they started to run pipelines to residences and businesses around Montrose (see PA Rural Residents Burn Marcellus Gas, Save Big Bucks on Heating). Last year Montrose held a business expo–an attempt to lure businesses to start or relocate in Montrose’s bucolic community. One of the key advantages? Hook up to cheap natural gas. It’s working. And that example is now being copied by neighboring Wyoming County, just to the south of Susquehanna County. The Wyoming County Chamber of Commerce and UGI Energy Services are working on a deal to bring locally produced natural gas to residents and businesses in Wyoming’s largest “city”–Tunkhannock (population 1,836). The Chamber is trying to get a $1 million grant from the state to help defray the cost for locals to connect to a new pipeline system that will flow local gas… Read More “2nd NEPA County Attracting Business with Locally Produced Gas”

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    PA Protesters Protest Outside Mtg to Discuss Handling Protesters

    This one has us spitting nails. We have reported, for months, about the activities of so-called protesters against Williams’ $3 billion Atlantic Sunrise Pipeline project. In particular, there is a group in Lancaster County, PA opposing the pipeline creatively called Lancaster Against Pipelines (LAP). Some of their members previously attended and participated in protests against the Dakota Access Pipeline in Standing Rock, ND–protests that turned violent and destroyed millions of dollars in equipment (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). In February, the chief organizer of LAP, Mark Clatterbuck, who participated in the illegal activities in North Dakota last year, announced he intends to bring that kind of mayhem to Lancaster County (see PA Anti Hopes to Bring Standing Rock Disaster to Lancaster County). Clatterbuck set his plans in motion in March (see Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster). Let’s see, thousands of protesters illegally blocking construction workers, burning equipment, and taking shots at police officers. How does that all sound for Lancaster County? Not very good, according to local State Senator Scott Martin, who organized a closed-door meeting yesterday with area first responders and police, piping in a satellite feed from North Dakota officials to discuss what Lancaster might do to prevent what happened in North Dakota (see Lancaster Forum to Focus on Handling Anarchists in Pipeline Protest). The forum was held yesterday, and protesters were there to protest the meeting about how to handle protesters (kind of meta, isn’t it?). The protesters said it was “disrespectful” and “irresponsible” to plan how to avoid the disaster of Standing Rock. Does that beat all? Are these people actually lunatics escaped from an asylum? To not plan how to handle a sizable group of people (many of whom will come from out of the area) that plan to engage in breaking the law–is the height of irresponsibility. Kudos to Sen. Martin for protecting area residents, the environment, and the workers who will build the pipeline irregardless of the temper tantrums thrown by these adult children who claim to be protesters… Read More “PA Protesters Protest Outside Mtg to Discuss Handling Protesters”

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    Dominion 1Q17 – Updates on Cove Point, Atlantic Coast Pipe & More

    Yesterday midstream and utility giant Dominion issued its first quarter 2017 update. Along with the update Dominion held an earnings call. On that call we learned new information about both the Atlantic Coast Pipeline (ACP) project, Dominion’s Cove Point LNG export project, and a plethora of other projects, including natgas-fired power plants and more pipelines in the works. Dominion CEO Tom Farrell shared the exciting news that Cove Point is now 89% complete and will be “in service” later this year. As for Atlantic Coast Pipeline, Dominion has now purchased 80% of the materials they will need to build it. Farrell said the pipeline will be online in the second half of 2019. Another six pipeline projects are underway (at a cost of $700 million)–with five of the six due to be done THIS YEAR. Dominion is a happening company. Below are extracts from the earnings call, the 1Q17 update (with financials), and the newest PowerPoint slide deck used during the earnings call…
    Read More “Dominion 1Q17 – Updates on Cove Point, Atlantic Coast Pipe & More”

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    Congress Considers Expanding FERC Authority to Fix Pipe Approvals

    The U.S. The House of Representatives’ Committee on Energy and Commerce held a hearing on Wednesday to hear testimony on a proposed plan to grant the Federal Energy Regulatory Commission (FERC) more authority to speed up the pipeline approval process. Up for discuss is an amendment to the Natural Gas Act to grant FERC more authority in coordinating what is, admittedly, a complex review process. A more powerful FERC would, for example, likely be able to override states like New York that refuse to grant water crossing permits (permits that are issued under a federal law!). Don Santa, executive director of the Interstate Natural Gas Association of America, was one of the people testifying before the assembled Congressmen. He said things have gotten pretty bad over the past two years–yes with FERC, but also with other federal and state agencies. Here’s some of what was said at the hearing…
    Read More “Congress Considers Expanding FERC Authority to Fix Pipe Approvals”