Pipelines

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    Has the Clock Run Out for NEXUS Pipeline?

    Is there still a market need for the NEXUS Pipeline project? That is the $2 billion question. Last December, the Federal Energy Regulatory Commission issued a positive final Environmental Impact Statement (see FERC Approves NEXUS Pipeline, Project on Track for 2017). The remaining obstacle for NEXUS is to obtain a certificate of public convenience and necessity from FERC, to begin construction. NEXUS had hoped to have that approval in hand on Feb. 3rd, when FERC issued a flurry of such certificates. However, NEXUS didn’t get one (see In FERC’s Game of Musical Chairs, NEXUS Pipeline Left Standing). Here’s the facts. The main competitor to NEXUS, Energy Transfer’s Rover Pipeline, DID get a certificate from FERC and is now under construction (see FERC Green Lights Rover Pipeline Construction). In addition, TransCanada is trying, hard, to entice western Canadian drillers to ship their gas east to Ontario in order to undercut both Rover and (if it gets built) NEXUS (see TransCanada Revives Plan to Lowball M-U Gas Using Canada Pipeline). While Rover’s pipeline capacity is 95% sold, only 59% of the NEXUS project is sold. So when a full FERC quorum is once again in place and willing to consider NEXUS, the question becomes, is the need still there?…
    Read More “Has the Clock Run Out for NEXUS Pipeline?”

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    Mind-Numbed Antis Need Maya’s Instructions re DRBC Mar 15 Mtg

    The Delaware River Basin Commission (DRBC), charged with overseeing potential impacts on the Delaware River and the various tributaries that feed it, has stepped outside of its legal bounds with plans to review the PennEast Pipeline, part of which will run through the Delaware River Basin area. In 2014 the DRBC tried to tell PennEast and its sponsors that the pipeline will need their approval before it can be built (see DRBC Tells PennEast They Need DRBC (Not Just FERC) Approval). There’s just one teeny tiny problem with the DRBC’s plan. It’s called the U.S. Constitution. PennEast is permitted solely by the Federal Energy Regulatory Commission (FERC), not any other agency including the quasi-governmental DRBC. No matter, the DRBC is plowing ahead with its plan and will hold a public hearing this Wednesday, March 15. We previously shared with you the secret marching orders from anti-pipeline Nazis called THE Delaware Riverkeeper (see THE Delaware Riverkeeper Plans to Pack DRBC Hearing to Oppose PennEast). Our insider has sent us two more communications from Riverkeeper to the apparently mind-numbed robots they call supporters. The first email went out last Wednesday with instructions for the protesters who will attend the meeting. Riverkeeper is providing comments for them to read at the hearing. All of it 100% scripted. The follow-up email on Friday had to re-instruct the faithful. Apparently there was confusion and Riverkeeper had to tell them, once again, that they are to read from what THE Delaware Riverkeeper herself (Maya van Rossum) has written. Listen up stupids: you read what Maya wrote–you don’t depart from the script–or you risk her considerable wrath. Apparently Riverkeeper’s protesting followers are not bright enough to form their own arguments against PennEast…
    Read More “Mind-Numbed Antis Need Maya’s Instructions re DRBC Mar 15 Mtg”

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    PennEast Pipeline Investor Looks to Sell its 10% Ownership Share

    New Jersey’s largest utility, Public Service Enterprise Group (PSE&G), is shopping its ownership stake in the $1 billion PennEast Pipeline project. Which may sound bad, but isn’t. Is PSE&G losing confidence in the project? Not happy with progress (or lack thereof)? Afraid it won’t ever get built? No, no and no. According to a company spokesman, the $10 billion PSE&G wants to focus on power projects, not pipelines. A little background and context is helpful. PennEast is largely being driven by Pennsylvania-based UGI, a natural gas and electric utility serving 700,000 customers in 45 counties in Pennsylvania and one county in Maryland. UGI is managing the project, and has the largest ownership stake. Other investors/owners of the project include PSE&G, which has only invested $11 million and owns a 10% stake; NJR Pipeline Company, a subsidiary of New Jersey Resources, an NJ utility; SJI Midstream, a direct subsidiary of South Jersey Industries; Southern Company Gas, a wholly owned subsidiary of Atlanta-based Southern Company, a midstreamer; and Spectra Energy, now a part of Enbridge, yet another pipeline company. Even though PSE&G wants to sell its share of the project for financial reasons, it will remain one of the customers for the PennEast Pipeline when (not if) it gets built…
    Read More “PennEast Pipeline Investor Looks to Sell its 10% Ownership Share”

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    Antis Attempt to Stop Atlantic Sunrise Pipe by Attacking FERC Order

    Sometimes this regulatory stuff gives us a headache. Like today. A common practice by anti-fossil fuel nutters when opposing a pipeline project at the Federal Energy Regulatory Commission (FERC) is to request a “re-hearing” on a decision FERC has made to authorize a project. It’s just standard operating procedure. If the antis can get FERC to agree to a re-hearing, it effectively slows, even stops, an active pipeline project. So in an effort to prevent important projects from being slowed or stopped, FERC developed something called a “tolling order”–which grants FERC more time to consider whether or not a full re-hearing is justified. During the time of the tolling order (which can last up to six months), work on a pipeline continues. Sometimes the work even gets completed! Which of course drives the antis bonkers. Antis claim FERC uses tolling orders to avoid lawsuits. You see, antis can’t take their frivolous cases to a court until FERC has officially denied a re-hearing request. So by using a tolling order, FERC can drag out the process of deciding to deny a re-hearing, avoiding the inevitable frivolous lawsuit that comes with it, and work on important projects gets done. This is how things must operate in our litigious society that tolerates the antics of anti-fossil fuelers (with seemingly bottomless pockets of money to litigate every project). New wrinkle: When FERC Commissioner Norman “cry baby” Bay resigned in a huff effective Feb. 3, it left FERC without enough Commissioners (without a quorum) to vote on tolling orders, re-hearing requests, etc. So on Feb. 3, before Bay left, the existing three Commissioners delegated their authority over re-hearings and tolling orders to FERC staffers–until a new Commissioner is appointed and sworn in. Antis against Atlantic Sunrise are using the delegated tolling order issue against FERC in their attempt to stop commencement of construction on Williams’ Atlantic Sunrise Pipeline project, claiming they are being deprived of their “due process”…
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    West Goshen’s Last Stand to Stop Mariner East 2 Pipeline

    There are a few last, desperate gasps at attempting to stop Sunoco Logistics Partners’ Mariner East 2 natural gas liquids (NGL) pipeline from being built. The pipeline is currently under construction (see Mariner East 2 Pipeline Constructions Begins Across PA). Even though trees are getting cut and pipeline is being laid, that doesn’t stop libs in places like West Goshen Township (Chester County, near Philadelphia) from attempting to deny Sunoco a zoning permit for a valve on the pipeline. Sunoco has politely, but firmly, told West Goshen the pipeline doesn’t need a permit from the town to install a valve because it’s a state-permitted project. In other words, go pound sand. Sunoco plans to move forward, at the appropriate time, with installation and wants assurances from West Goshen the town won’t send in a local cop to stop them. It could get messy…
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    PA State Senator Introduces Bill to Regulate Gathering Pipelines

    PA Senator Lisa Baker

    We’re not quite sure what to think about this one. A Republican PA State Senator, Lisa Baker, on Monday introduced a bill in the PA Senate (SB 488, see a copy below) to regulate low-pressure natural gas gathering pipelines. Currently those lines, over 3,600 miles of them, are not regulated by any state or federal agency. Baker’s bill would put them under the oversight of the PA Public Utility Commission. Hey, we’re not against regulation in general. It’s an important part of the puzzle that makes energy possible. We are, however, against unnecessary and onerous regulation. We are against barriers that would slow, to a crawl, the installation of new gathering lines–what are by all accounts very safe pipelines. When was the last time you heard about a local gathering line that sprung a gas leak, blew up, etc.? Yeah, us too. Never. So the real question here is: Is regulating these lines even necessary? We suspect not, but we’ll keep an open mind while this plays out…
    Read More “PA State Senator Introduces Bill to Regulate Gathering Pipelines”

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    Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval

    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 NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. Although FERC has now given permission to build it, the State of New York, specifically the state’s Dept. of Environmental Conservation (DEC), must issue stream crossing permits. Sound familiar? The DEC faced a similar task with the FERC-approved Constitution Pipeline and ultimately, under political pressure from Gov. Andrew Cuomo, made the decision to refuse granting Williams the permits it needs to build the Constitution. Williams sued and sometime this spring NY will almost certainly lose the case (see Bloomberg Predicts Court Will Strip NY’s Right to Stop Constitution). With the approval arriving, the DEC decided maybe it was time to begin conducting circus public hearings about the project (see Battle Begins to Get NY DEC to Approve Northern Access Project). But NFG is in no mood to screw around with the Cuomo DEC, so they’ve asked FERC for a “reconsideration and clarification” on the role of the DEC in reviewing the project. Specifically, NFG wants FERC to rule that the DEC has NO role in reviewing the Northern Access 2016 project. Wouldn’t that be sweet?…
    Read More “Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval”

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    Standing Rock Wannabes in Lancaster Threatened with $1K/Day Fines

    Barn illegally hosting encampment

    Two days ago MDN brought you the news that anti-fossil fuelers opposed to the Williams Atlantic Sunrise Pipeline project are using the same (losing) playbook to oppose Atlantic Sunrise as they used to oppose the Dakota Access Pipeline (see Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster). What is that playbook? Establish a protest “camp” where hundreds or thousands of “protesters” (i.e. paid activists) can assemble to “fight” the pipeline. When you get a bunch of lazy hippies together, you need some logistics–a place to stash food, water, toilet paper, condoms (whoops, did we say that out loud?). You also need a meeting hall. The antis in Lancaster found a sympathetic local landowner who is loaning them his barn–as a place to store things and for meetings. The problem is, the barn isn’t zoned as an “encampment” and meeting hall, and the local municipality is threatening to slap the property owner with a $1,000 per day fine if the illegal protest meetings being held in the barn aren’t stopped. Now. The antis, who see evil methane monsters behind every tree, claim “Somebody’s out to get us, we don’t know who”…
    Read More “Standing Rock Wannabes in Lancaster Threatened with $1K/Day Fines”

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    Williams Keeps Pressure on PA DEP to Issue Atlantic Sunrise Permits

    The Federal Energy Regulatory Commission (FERC) approved Atlantic Sunrise in early February (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). Even though the project is approved, that’s not the end of the story. Regulatory work still remains, including approvals from the Pennsylvania Department of Environmental Protection (DEP) and the U.S. Army Corps of Engineers. Construction of Atlantic Sunrise is scheduled to begin later this year, pending the receipt of these regulatory approvals. Williams is gently pressuring the DEP to hurry it up. Fortunately for Williams, the PA DEP is not like the corrupt New York Dept. of Environmental Conservation (DEC). In NY, the DEC caved to political pressure from Gov. Cuomo and denied Williams stream-crossing permits (a matter now in court, see Constitution Pipeline Case Goes to Court in 2 Weeks, Briefs Filed). In PA, the DEP will no doubt do its job and grant the permits. The problem is, they’re taking waaaaaaay too long to do it…
    Read More “Williams Keeps Pressure on PA DEP to Issue Atlantic Sunrise Permits”

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    Rover Pipeline Challenges FERC re Demolishing “Historic” House

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). 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. 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 has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s why FERC didn’t issue a blanket certificate for construction of Rover. So ET and Rover have now filed for a rehearing, claiming FERC erred in not granting the blanket certificate…
    Read More “Rover Pipeline Challenges FERC re Demolishing “Historic” House”

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    Proposed 13-Mile Pipeline in SW OH Under Review, DOPEs Oppose

    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 gas it needs to move from one point to another in Hamilton County (Cincinnati), the southwest corner of the state. The Duke pipeline has been around and in service since the 1950s. Duke needs to replace that pipe or some of the 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 was, 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’d call them DOPEs–Dummies Opposing Pipeline Extensions. Will these people volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built?…
    Read More “Proposed 13-Mile Pipeline in SW OH Under Review, DOPEs Oppose”

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    PA DEP Sec McDonnell Defends Overreach of GP-5/5A

    At last week’s Oil & Gas Awards’ 2017 Northeast Industry Summit, MDN editor Jim Willis heard former Pennsylvania Dept. of Environmental Protection (DEP) Secretary, Michael Krancer, say that the DEP’s proposed changes to General Permit (GP) 5 and 5A are “a big deal” and that the permits, as drafted, have the potential to stop PA natural gas production for 12-18 months while new regulations get sorted out (see Big News from the O&G Awards Northeast Industry Summit). We’ve written a fair bit about GP-5/5A, most recently in December (see PA DEP Extends Public Comment Period for Methane Regs). Our take on GP-5/5A is that it will target a reduction in fugitive methane. However, Krancer said the new rule would also stop any new pipeline construction through wetlands (virtually any and all new pipelines) until new permitting procedures are hashed out–hence his startling statement about production stopping for more than a year. Krancer also said GP-5/5A will regulate small gathering lines. PA’s legislators are very concerned about GP-5/5A and submitted a letter to DEP Acting Secretary Pat McDonnell in February with 21 questions about the new rule change. McDonnell met with several Senators and subsequently responded, in writing, by addressing each of the 21 questions. We have McDonnell’s letter and responses below…
    Read More “PA DEP Sec McDonnell Defends Overreach of GP-5/5A”

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    7 Major Marcellus/Utica Pipelines Coming This Year & Next

    Yesterday MDN brought you a story about the difference, in the price drillers get for their gas, that a single pipeline can make (see The Difference One Utica Pipeline Can Make on Gas Prices). That story was about how the Rockies Express Pipeline (REX) reversed its flow from Ohio to Missouri adding 800 million cubic feet per day (MMcf/d) of extra capacity for a total of 2.6 billion cubic feet per day (Bcf/d) of gas now flowing from the Utica/Marcellus to the Midwest. REX is an existing pipeline. Just think about all of the pipeline projects in the queue for the Marcellus/Utica. In fact, there are seven major projects that are either already-approved by the Federal Energy Regulatory Commission (FERC) or under review now. If you add them all together, it represents almost 12 Bcf/d of additional natural gas flowing out of our region to other regions, where it will fetch higher prices. What are the seven projects? How much gas will each flow? When will they go online? We need a scorecard! We now have one…
    Read More “7 Major Marcellus/Utica Pipelines Coming This Year & Next”

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    Josh Fox, Maya & Friends Plan to Protest Any FERC Appointments

    You know it’s a slow week for anti-fossil fuel crackpots like Josh Fox and Maya van Rossum (THE Delaware Riverkeeper) when they have to hold a conference call to begin protesting something that hasn’t even happened yet. The Donald has been a busy boy, trying to weed out Obamadroids deeply embedded in the federal government. The President is responsible to appointing something like 5,000 people to positions throughout the federal government. Most of them pass through Presidential Personnel (an office MDN editor Jim Willis once worked in during the Reagan Administration, back in the Jurassic period) and do not require Congressional approval. But one agency of primary concern for us, the Federal Energy Regulatory Commission (FERC), is still missing three of five Commissioners. Trump has not (yet) put forward nominees to staff it, nominees who will have to be approved by the Senate. But lack of nominees isn’t stopping Josh Fox, Maya van Rossum, a PA pig farmer and others with an abject hatred of FERC because FERC is responsible for evaluating and approving pipeline projects. You know, pipelines that flow evil, disgusting, horrible fossil fuels that are poisoning Mom Earth. On a conference call scheduled for tomorrow, Josh, Maya & friends will outline their opposition to ANYONE Trump puts forward. Doesn’t matter who it is. The Dalai Lama? Against him. BH Obama? Against him too. Meryl “hates Donald Trump’s guts” Streep? Against her, even though she’s a hater. Queen Hillary? She’s yesterday’s news. Mickey Mouse? Set out a mousetrap. That will be the strategy outlined on tomorrow’s conference call…
    Read More “Josh Fox, Maya & Friends Plan to Protest Any FERC Appointments”

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    FERC Green Lights Rover Pipeline Construction

    Along with chainsaws buzzing (until Mar. 31) and wood chips flying, Rover Pipeline has now started the backhoes. As MDN previously reported, on Feb. 3 the Federal Energy Regulatory Commission (FERC) gave its final approval for Energy Transfer’s Rover Pipeline project, a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). At the time we observed Rover had received permission to clear trees before the Mar. 31 “can’t kill roosting bats” deadline. However, Rover did not have permission to begin digging trenches and laying pipeline. That permission came this past Friday…
    Read More “FERC Green Lights Rover Pipeline Construction”

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    Ohio EPA Begins Using New General Permits for Compressor Stations

    Compressor stations in Ohio, needed to flow natural gas through numerous new pipelines being built, require a permit from the Ohio Environmental Protection Agency (EPA) in order to get built. The Ohio EPA considers each application independently, a laborious and long process. In an effort to streamline that process, the Ohio EPA began work on a plan in September 2015 to issue “general permits” for compressor stations (see Ohio EPA Seeks “Pre-Comments” on Compressor Station Permit Plan). A general permit is, essentially, a cookie cutter approach. If midstream companies agree to the provisions in the general permit, i.e. they commit to using certain types of equipment and certain standards, the permit process will speed along much faster. In April 2016 Ohio EPA floated draft versions of the new general permits (see Ohio EPA Seeks Comments on New Permits for Compressor Stations). The long wait is over. Ohio EPA announced last week that the new general permits (there are a BUNCH of them) are ready for use…
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