Pipelines

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    NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection

    Earlier this month MDN brought you the sad (and angering) news that once again Gov. Andrew Cuomo has caved to political pressure from environmental Nazis and instructed the now-corrupted Dept. of Environmental Conservation (DEC) to deny stream crossing permits for National Fuel Gas Company’s (NFG) Northern Access Pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). A few days later, NFG issued a statement to say their proposed pipeline project would have FAR LESS impact on the environment “than either exploding an entire bridge structure and dropping it into Cattaraugus Creek (Route 219) or developing and continuously operating a massive construction zone in the middle of the Hudson River (Tappan Zee Bridge) for a minimum of five years” (see NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling”). Both of those projects were reviewed and approved by Cuomo’s DEC, yet the DEC rejected a benign pipeline project. At the time we said this: “While there is no mention of a lawsuit against the DEC, you can bet your bottom dollar such a suit is coming.” Once again, we were right. Last Friday NFG sued the DEC in federal court, asking the court to review the DEC’s action in rejecting permits for the federally-approved project…
    Read More “NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection”

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    TGP’s Extraordinary Security to Build 2-Mile Pipeline in Mass.

    In March 2016–more than a year ago–the Federal Energy Regulatory Commission (FERC) approved Tennessee Gas Pipeline’s (TGP) $86 million Connecticut Expansion project (see FERC Approves TGP Connecticut Expansion Pipeline Project). The project includes building 13.42 miles of new pipeline loops in three states: Connecticut, Massachusetts and New York. When completed, the new looping will serve an additional 72,100 dekatherms of (mostly) Marcellus Shale gas to three utility companies in Connecticut. A pretty low-key project overall with just 13.42 miles of new pipeline. But anti-fossil fuel kooks object to very square inch of new pipelines–no matter where they are constructed. (Perhaps if pipelines flowed marijuana instead of fossil fuels, they’d feel differently about them? But we digress.) The State of Massachusetts did its best to block construction there, but eventually lost and was forced to grant an easement for a lousy 2 miles of pipeline. And now, more than a year after getting a green light from FERC, TGP is finally beginning construction. The security they must maintain to construct a lousy 2-mile pipeline is, in a word, extraordinary…
    Read More “TGP’s Extraordinary Security to Build 2-Mile Pipeline in Mass.”

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    Report: Blocking Pipelines in Northeast an Economic Disaster

    Last year the U.S. Chamber of Commerce, via their Institute for 21st Century Energy intiative, launched a “What If…?” series to counter the radical “keep it in the ground” movement–a movement that irrationally hates the use of fossil fuels. In August 2016, the Chamber released their first such report, titled “What If…Energy Production was Banned on Federal Lands and Waters?” (see Chamber Report Details Why ‘Keep it in the Ground’ a Disaster). In September 2016, the Chamber released their second report (see Report: What If America’s Energy Renaissance Never Happened?). In October 2016, they released the third report (see Report: What If the U.S. was Forced to Pay EU Energy Prices?). And in November 2016, just prior to election day, the Chamber released the fourth report, titled “What If…Hydraulic Fracturing Was Banned?” (see Report: What if Fracking was Banned, as Hillary Wants?). The Chamber is back with a fifth report, titled “What if…Pipelines Aren’t Built Into The Northeast?” (full copy below). Like the Chamber’s other reports, it offers sobering details about what’s coming with a lack of pipeline construction. In the states examined–New England plus New York, New Jersey, Pennsylvania, Ohio, and West Virginia–the report finds that lack of additional pipeline infrastructure would cost over 78,000 jobs and $7.6 billion in GDP by 2020. New York State alone would see $1.6 billion less in state GDP, and the loss of 17,400 jobs. Scary stuff…
    Read More “Report: Blocking Pipelines in Northeast an Economic Disaster”

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    Dela. Riverkeeper Protects Wm. Penn Foundation’s Tax Exemption

    MDN friend Tom Shepstone has long pointed out the incestuous connection between THE Delaware Riverkeeper and the William Penn Foundation. William Penn is a nonprofit that, according to its nonprofit charter, cannot use its considerable wealth to engage in political activities. So like an organized crime ring, William Penn uses Riverkeeper as the front organization to do its dirty work–investing millions in the Riverkeeper to carry out its (William Penn’s) radical environmental agenda. All at an arm’s length–to protect William Penn’s tax exempt status (hello IRS and PA Attorney General’s office, are you reading this?). It is a thinly-veiled shell game of money changing hands. The William Penn/Riverkeeper shell game is exposed in a recent article in the Washington Examiner…
    Read More “Dela. Riverkeeper Protects Wm. Penn Foundation’s Tax Exemption”

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    Dear President Trump: FERC Needs a Quorum. NOW.

    We reported back in February that a group of far-left House of Representatives Democrats sent a letter to President Trump imploring him to appoint new members to the Federal Energy Regulatory Commission (see Anti-Drilling Democrats Ask Pres. Trump to Fill Up FERC). Then in March, a group of lefty Senate Dems did the same thing (see Senate Democrats Send Letter to Trump Requesting New FERC Members). FERC is the agency that, among other things, reviews and approves interstate oil and gas pipeline projects. The agency has been without a quorum since Feb. 3, when Norman “cry baby” Bay quit in a huff (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). So why would those who hate FERC want it staffed up and humming along? Because without a quorum, FERC can’t hear requests for re-hearing. In Democrat-land, you want to get to a liberal judge as quickly as possible to stop a pipeline project. Dems can’t litigate until FERC denies a request for re-hearing a decision to green light a pipeline project. Without a quorum, previous decisions stand and pipelines are getting built–a five alarm emergency is radical enviro-land. So they’re trying to pressure Trump to appoint at least one more commissioner, stat. But the antis aren’t the only ones. Now those on the pro-drilling, pro-pipeline side of the isle are joining the chorus and attempting to “encourage” (pressure, cajole, goose) President Trump into getting more commissioners appointed asap. The Natural Gas Supply Association, American Gas Association, Energy Equipment & Infrastructure Alliance, Independent Petroleum Association of America and Interstate Natural Gas Association of America penned a joint, open letter to President Trump, published in a major Washington, DC newspaper, requesting he get at least one FERC appointment done. Soon. ASAP. Now. Even if that happens, it’s likely to take another two months before the new commissioners are seated and working…
    Read More “Dear President Trump: FERC Needs a Quorum. NOW.”

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    Mariner East 1 Sprang a Small NGL Leak Near Philly, on Apr 1

    Mariner East Pipeline Project map – click for larger version

    The Mariner East 1 pipeline sprung a small leak and spilled 20 barrels (~840 gallons) of ethane and propane in Berks County, near Philadelphia, on April 1. Sunoco Logistics Partners, builder and maintainer of the pipeline, shut it down and fixed it over the next several days. The entire episode, which happened 20 days ago, is only now coming to light. Sunoco is being criticized by antis for not taking out a major advertising campaign to announce the leak. Sunoco says they alerted the National Response Center (NRC), the proper federal authority (a program of the U.S. Coast Guard). Apparently it is the job of the NRC to alert the public. Although this was a small leak which was quickly contained and with no long-term effects, Sunoco seems to have missed an important life lesson: He who gets there with the bad news first, wins. Sunoco LP should have (in our opinion) been more proactive in publicly announcing the leak and the steps taken to contain and fix it–and to reassure folks that measures will be taken to prevent any such leaks in the future. There would have been a day or two of hit pieces by “mainstream” media, and then the story would have disappeared. Now, the story will linger and be used against the company should any more minor spills happen…
    Read More “Mariner East 1 Sprang a Small NGL Leak Near Philly, on Apr 1”

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    Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid

    Two weeks MDN brought you the news that Energy Transfer’s $3.7 billion, 711-mile Rover Pipeline needs up to 15,000 workers to build it. At the time, it was reported they currently have ~4,500 workers. And they want to complete the first stage of the pipeline by July (see Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!). MDN’s story went viral. It has, so far, been read over 18,000 times on the MDN website–a new record for an MDN story just two weeks old. The headline and blurb we posted on Facebook has been seen by over 75,000 people! The result was that we were flooded with this simple question: Where do I sign up to work on the pipeline? The answer, unfortunately, is not straightforward. We reached out to Energy Transfer multiple times and got less-than-satisfactory answers. Energy Transfer’s answer to the question is this: If you are a contractor or want to try your hand at becoming a contractor, you can try applying via Rover’s contractor online application process. However, most people are not interested in that route. They just want to sign up and begin working. For those folks, Rover responded, “Rover is committed to utilizing Union labor 100% for this project. Laborers looking for work, can contact their local union halls.” No help with identifying those local union halls. So MDN provided a list (see How to Apply for one of the 15K Jobs Building the Rover Pipeline). Perhaps MDN had a hand in a flood of new recruits, because as of a construction report filed by Rover with the Federal Energy Regulatory Commission earlier this week, they now have 7,570 people working on the pipeline. It’s an interesting update (full copy below). Rover includes a table for how much of each phase the pipeline is complete. Tree felling? 100% done. Tree clearing? For the mainline, 51% done. How much of the main pipeline is now laid and ready for welding? Just 2%. Also interesting is a brief note that back on April 7, there was a small spill of bentonite drilling mud into a swap…
    Read More “Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid”

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    Encana Says Montney Gas Can Compete with M-U at Dawn Hub

    Click for larger version

    Canadian driller Encana issued a press release two days ago with a pretty big boast. The release touts Encana’s leased acreage in the Montney Shale basin. Where’s that? It’s located along the border of Canada’s British Columbia and Alberta provinces–not far from the West Coast in the northern reaches of Canada. Encana is claiming they will use cheap pipeline rates now offered by TransCanada to transport up to 316 million cubic feet per day (MMcf/d) of natural gas to the Dawn Hub in Ontario (our neck of the woods), and do so more cheaply than gas arriving at the Dawn Hub from the Marcellus/Utica. You may recall that TransCanada cooked up a plan to cut the price of transporting gas from Western Canada to Ontario in a bid to compete with cheap Marcellus/Utica gas (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). Look at the map we’ve provided. TransCanada claims it can make it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. Encana is the first driller we are aware of it give it a go…
    Read More “Encana Says Montney Gas Can Compete with M-U at Dawn Hub”

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    Pilgrim Pipeline Takes Arrows from Radical Antis – Project Dead?

    In November 2015, MDN told you about Pilgrim Pipeline Holdings, developing an East Coast pipeline to carry refined petroleum products such as gasoline, diesel, heating oil, and jet and aviation fuel northbound from Linden, New Jersey to Albany, New York (178 miles). In addition, a second Pilgrim pipeline will carry crude oil from Albany south to NJ and other locations. Two pipelines, side by side, different liquids flowing through them in different directions (see Will Pilgrim Pipeline be Allowed to Settle in the NY World?). The oil that would flow south from Albany comes from trains delivering crude from the Bakken Shale play–a double evil in the sight of radical anti-fossil fuelers. Antis from both New York and New Jersey have vigorously opposed the project from the beginning. We told you about a meeting in Bergen County, NJ last year where the antis “got rowdy” (see NJ Residents “Get Rowdy” in Opposition to NY-NJ Pilgrim Pipeline). Pilgrim has been working hard to accommodate concerns about the pipeline. Most recently, Pilgrim adjusted its route in NJ. The radicals at the New Jersey Sierra Club are encouraged by the route change–encouraged that the project is now on life support and the Clubbers are itching to pull the plug…
    Read More “Pilgrim Pipeline Takes Arrows from Radical Antis – Project Dead?”

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    Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp

    We suppose it was bound to happen, but fervently wish it hadn’t. In the process of drilling underneath the Tuscarawas River (in Stark County) one week ago, on April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid.” That is, they sprung a leak and spilled nearly 2 million gallons of drilling fluid. Not, thank God, into the Tuscarawas River, but into a swamp (i.e. “wetland”) next to the river. Fortunately the primary component of said drilling fluid is nontoxic bentonite–the same ingredient used to make shampoo, deodorant, toothpaste and kitty litter. We’ve covered other such nontoxic spills in the past (see our bentonite stories here). The biggest threat to aquatic life in the river is if large quantities of bentonite get into the river and smother the little fishies and salamanders–from lack of oxygen. A second spill happened while drilling horizontally under another swamp the very next day–in Richland County. Rover workers spilled 50,000 gallons of drilling fluid there. Both spills were immediately reported to the Ohio Environmental Protection Agency, which is on the job, monitoring cleanup efforts. A whopping fine is sure to follow…
    Read More “Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp”

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    Thoroughbred Cabot O&G Ready to Bolt When Pipeline Gate Opens

    Cabot Oil & Gas had the highest production in the county with the highest amount of production (Susquehanna County) in 2016 in Pennsylvania. Cabot had the second highest amount of production (coming from that single county) in PA for all of 2016, not far behind Chesapeake Energy. Last year using their “Gen 4” completions in the Marcellus, Cabot increased estimated ultimate recovery (EUR) rates from 3.8 billion cubic feet (Bcf) per 1,000 feet of lateral well to 4.4 Bcf (see Cabot O&G 2016 – Production Grows from 3.8 to 4.4 Bcf per 1K Feet). Cabot gets double the gas per lateral foot of well than some of its competitors. By all accounts, Cabot is the equivalent of a thoroughbred horse. But the Cabot horse is still penned up at the starting gate, waiting for the gate to open. The gate, in this metaphor, is pipeline projects that will carry some of Cabot’s prolific northeastern PA production to other regions where it can fetch a higher price. According to research analyst Michael Fitzsimmons, writing on the Seeking Alpha investor website, Williams’ Atlantic Sunrise Pipeline “will unlock the cage that has kept Cabot Oil & Gas’ reserves bottled up” by flowing an eye-popping 1 Bcf per day of Cabot natgas south…
    Read More “Thoroughbred Cabot O&G Ready to Bolt When Pipeline Gate Opens”

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    Marcellus/Utica Gas Soon Heading to Florida Penninsula via Sabal Trail

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    Spectra Energy (and partners NextEra Energy and Duke Energy) are building a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia and Alabama to deliver Marcellus gas to the southeast. The project, called Sabal Trail Transmission, has been underway for the past three+ years and is due to be completed and online in June–two months from now. Sabal Trail will connect to Williams’ Hillabee Expansion Project, which is a new pipeline spur built off the huge Transco pipeline system (see Williams Building Alabama Pipeline with Marcellus Connection). Williams is reversing a portion of the Transco to bring Marcellus gas south. RBN Energy provides a comprehensive update Sabal Trail and Florida’s “gas thirsty peninsula” that it will serve. RBN says one of the main users of Marcellus gas in Florida will be (yep) electric power generating plants…
    Read More “Marcellus/Utica Gas Soon Heading to Florida Penninsula via Sabal Trail”

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    The Key to Unlocking PA’s NatGas Reserves: Pipelines

    Once the slew of approved and under-construction pipeline projects in the Marcellus/Utica region are done, the M-U region will likely go from providing 20-25% of the nation’s total natural gas production to providing one-third of the country’s total natgas production. This astonishing story of production and pipelines in the northeast is really, at its core, a story about Pennsylvania. According to a recent Reuters article, at least five pipelines capable of transporting a combined 7 billion cubic feet per day (Bcf/d) of natgas from the PA Marcellus/Utica are scheduled to open in 2017, with five more transporting another 5 Bcf/d due for completion in 2018. Pipelines are the key to unlocking Pennsylvania’s vast natgas reserves…
    Read More “The Key to Unlocking PA’s NatGas Reserves: Pipelines”

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    Hearings Scheduled for Proposed Duke Pipeline in Cincinnati

    Duke Energy Ohio, an LDC or “local distribution company” serves some half a million customers with natural gas in Ohio. The company has a 12-mile pipeline to flow the gas it needs, to move it from one point to another in Hamilton County (Cincinnati), in the southwest corner of the state. The Duke pipeline has been in service since the 1950s. Duke needs to replace that pipe or some of those half million Duke customers won’t get natural gas any more. Because anything to do with “fracking” or “pipelines” has been so thoroughly bastardized by the media and anti-fossil fuel protesters, there has been, of course, opposition to Duke’s plan. So Duke “listened” and has scaled back their plans. Instead of building a 30-inch gas pipeline running at 600 psi (pounds per square inch), the revised plan calls for a 20-inch pipeline running at 400 psi (see Duke Energy Modifies/Scales Back Plan for SW OH Pipeline). Duke proposed two potential routes, both of which are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPErs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! Two public hearings have now been scheduled–one for June 15 and the other July 12. The DOPErs are gearing up to fight…
    Read More “Hearings Scheduled for Proposed Duke Pipeline in Cincinnati”

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    FERC State of the Markets Report 2016 – Pipelines to the Rescue

    Late last week the Federal Energy Regulatory Commission (FERC) released its annual “State of the Markets Report” for 2016 (full copy below). Among the choice tidbits we found this statement: “Natural gas production from the Marcellus and Utica shales accounted for 30 percent of the U.S. total in 2016, due to the prolific nature of these formations, relatively low production costs, and proximity to the large Northeast markets. In addition, new pipeline infrastructure reduced bottlenecks allowing additional gas to reach the demand centers.” We also spotted this interesting factoid: “In 2016, 7.1 Bcf of FERC jurisdictional pipeline capacity went into service, with 43 percent designed to move natural gas from Appalachia to markets in the Northeast and Midwest. Staff expects the new natural gas pipeline capacity to continue contributing towards shrinking price differentials between regions throughout the U.S., and help keep natural gas prices relatively low.” Translation: hang in there Marcellus/Utica drillers–prices are going to rise soon because of these new pipelines. Here’s the update from FERC…
    Read More “FERC State of the Markets Report 2016 – Pipelines to the Rescue”

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    Williams Responds to Tired Old Claim Atlantic Sunrise Exports Gas

    Atlantic Sunrise Pipeline map – click for larger version

    One of the arguments anti-pipeline advocates are attempting to use to slow down the Atlantic Sunrise Pipeline project in Pennsylvania is to argue there aren’t enough Federal Energy Regulatory (FERC) Commissioners to listen to them complain. When FERC Chairman Norman “cry baby” Bay left in a huff on Feb. 3, FERC was left with just two (out of five) active Commissoners (see FERC Commissioner Norm Bay Targets M-U on Way Out the Door). On Bay’s last day on the job, he and the other two active Commissioners voted to approve the Atlantic Sunrise project (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). When a project is authorized, the very first tactic in the anti playbook is to challenge it. But unfortunately (for the antis), nobody’s home to hear them. That is, there aren’t enough Commissioners to hear their protest and make a decision to reverse their previous decision. Thing is, if they did hear the complaining of antis and decided their original decision was just fine, the antis then move on to filing an appeal in court. But antis can’t “pass go and collect $200” (i.e. go to court) until/unless FERC first refuses to “re-hear” their decision. Antis in Lebanon County have filed with FERC, hoping there will soon be a quorum to consider their complaint against Williams and Atlantic Sunrise. One of their main arguments is a very old argument–that most of the gas that will head south will be exported. Williams took time to swat that one away, once again…
    Read More “Williams Responds to Tired Old Claim Atlantic Sunrise Exports Gas”