Pipeline Industry Walks Tightrope re Made in America Pipes
Soon after President Trump was inaugurated, some of the first Executive Orders he signed dealt with the Dakota Access Pipeline (now completed, thank God), and the Keystone XL Pipeline. Trump also signed a “Presidential Memorandum”–similar to, but not the same as, an Executive Order. On Jan. 24, President Trump signed the “Presidential Memorandum Regarding Construction of American Pipelines,” which instructs the Dept. of Commerce to ensure the pipelines used for new projects, and for major repairs, are Made in America–from the smelting stage through the final fabrication stage. That order has had the midstream industry squirming, quite frankly. Why? Because so much of the pipelines we now use are foreign made. While the goal of 100% American made pipeline is laudable (and something we support), the fact is, our domestic industries are not currently set up to produce all of the pipeline we need. So until our own domestic industries are capable, the midstream sector will have to continue relying on “global sourcing” for at least some pipeline materials. That was the message conveyed by five trade associations representing the industry in comments jointly filed with the Dept. of Commerce last Friday. The industry is walking a tightrope. On one hand they want to support Trump’s efforts to use American manufacturing of pipes, on the other, they want to be able to finish projects under way or planned to begin soon…
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We’ve now written two posts addressing the jaw-dropping audacity of the corrupt New York Dept. of Environmental Conservation in their refusal to grant water crossing permits to a second major pipeline project (see 
Last week 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. They currently have ~4,500 workers. And they want to complete the first stage of the pipeline by July (see 
Last Thursday was the last day for people, agencies, nutjobs, supporters–for anyone–to file an official comment with the Federal Energy Regulatory Commission (FERC) on the agency’s draft environmental impact statement for the Atlantic Coast Pipeline project. Dominion has proposed building the $5 billion Atlantic Coast Pipeline (ACP) project from West Virginia through Virginia and into North Carolina. One of the problems they’ve had is resistance from U.S. government agencies, including the U.S. Forest Service. In January 2016, the USFS told Dominion it was a no-go for running the pipeline through tiny pieces of either the Monongahela or George Washington national forests in West Virginia and Virginia (see 
Yesterday we 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 Northern Access Pipeline project (see 
Compressor Engineering Corp. (CECO) popped the cork on completing 50 years of business in 2014 when it discovered it had a huge problem. The company had expanded into the pipeline business–laying pipelines–and the people the company had hired to manage that part of the business were dishonest, according to CECO. Money the company thought it had wasn’t there–but they still had to complete projects already signed and sealed. So the company, which works in Ohio and Pennsylvania, completed the projects, borrowing heavily to do it. They nearly went bankrupt. After exiting the pipeline business in Ohio, they considered shutting down the company. But then a miracle happened. One of CECO’s core businesses is manufacturing pipeline valves. As it happens, pipelines that used to flow gas from the Gulf Coast to the northeast were beginning to reverse and flow Marcellus/Utica gas the other way. That required a special kind of valve–manufactured by CECO. You can probably guess where this story is going…
On Friday the Federal Energy Regulatory Commission (FERC) finally, after delaying a decision three times adding an extra eight months, issued a final Environmental Impact Statement (EIS) for the PennEast Pipeline project. We should add, it was a favorable EIS. While FERC found (as they always do) that there would be “some adverse environmental impacts” from the project, those impacts “would be reduced to less than significant levels” with PennEast’s proposed construction plans. This is a major milestone and all but assures the project will now go forward and will be built and go into service sometime in 2018. What potential roadblocks remain? For one, PennEast will need water crossing permits from New Jersey, which they filed for last week (see 
On Feb. 3, the Federal Energy Regulatory Commission (FERC) approved a long-delayed project–National Fuel Gas Company’s (NFG) Northern Access 2016 pipeline project (see 
In January 2016, Kinder Morgan committed to building the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada (see 
School officials at a school district in Delaware County, PA (Philadelphia suburb) were, understandably, concerned about plans that would bring the Mariner East 2 pipeline “near” the school. What happens if, in the extremely unlikely event, the pipeline leaks? Or explodes? What kind of measure are in place to protect the kiddies? Sunoco Logistics personnel (builder of the ME2 project) along with emergency first responders met with Middletown school officials on March 31 in a private meeting–because emergency plans are confidential. Coming out of that meeting, the school district superintendent said he was “extraordinarily satisfied” with the plans and that they kids are safe with ME2 being located nearby. You don’t hear that often, because the media doesn’t typically report it…
Even though a companion story today reveals that a local school district in Middletown Township, PA (near Philadelphia) is completely satisfied that the Mariner East 2 pipeline is safe (see Delco School “Extraordinarily Satisfied” with ME2 Pipeline Safety), there are still a few hardened anti-fossil fuelers in Middletown who refuse to consider reason. They are keeping up a losing battle against ME2. Their latest approach is to pressure (i.e. bully) town officials to unilaterally reject the pipeline through their jurisdiction based on town zoning codes about setbacks–the distance from the pipeline to surrounding structures. Like two other towns with similar codes (Thornbury and West Goshen), the antis in Middletown are threatening to (surpise!) sue if the town doesn’t do what they (the antis) selfishly demand by rejecting the pipeline…
The Virginia Department of Environmental Quality (DEQ) announced yesterday that it would require water quality certifications under Section 401 of the federal Clean Water Act for each segment of both the Atlantic Coast Pipeline project (Dominion) and the Mountain Valley Pipeline project (EQT & NextEra Energy). Apparently the DEQ considered using the U.S. Army Corps of Engineers Nationwide Permit 12 process–a less rigorous review (saves about half a forest of trees in paper). But in the end, the DEQ said they were caving to political pressure from anti groups (our words), and instead put Atlantic Coast and Mountain Valley on notice to get ready for a detailed exam. It will be painful. However, it’s not anything either company isn’t already used to/hasn’t done before. We wouldn’t say “it’s no big deal,” but neither is this a show stopper. The more relevant question: Is the DEQ ready to review the blizzard of paperwork that will come at them, IN A TIMELY MANNER? The real question is whether or not the DEQ is equipped to conduct the extensive review they’ve now demanded, and what happens if they can’t?…
In what has to be a major blow to the morale of anti-pipeline crusaders in West Virginia, Virginia and North Carolina, the top elected state officials in the legislatures of all three states, both Republicans AND Democrats (16 of them in all), sent a letter on Tuesday to the Federal Energy Regulatory Commission (FERC) requesting FERC approve the Atlantic Coast Pipeline project. Dominion wants to build a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The leaders of all three state legislators have told FERC, we want this pipeline, we NEED this pipeline, please approve it. Today is the last day FERC will receive public comments on the project. Here’s who signed, along with a copy of the letter sent to FERC…
Today is, hopefully, a joyous day for the PennEast Pipeline. Today is the day that the Federal Energy Regulatory Commission (FERC) is supposed to, after three delays, issue the project a final Environmental Impact Statement. If/when that final EIS is issued, the only step remaining, from the federal perspective, is a certification of the project. Typically a favorable final EIS is the big step, and the certification then is perfunctory–a given. We have to confess we are on pins and needles because the project has now been delayed three times, a red flag in our book (see