FERC Commissioner Resigns Threatening Major M-U Pipeline Projects

Last Thursday, Norman Bay, one of three Federal Energy Regulatory (FERC) Commissioners, announced he would resign effective Feb. 3–this Friday. His unexpected resignation directly threatens a number of critical pipeline projects in the Marcellus/Utica. It appears to us to be a revenge resignation–an attempt to screw the Trump Administration. Bay is a Democrat. In fact, all three sitting FERC Commissioners are Democrats. FERC is supposed to have five Commissioners–but there have been two empty slots since last September when Republican Tony Clark left. Last week President Donald Trump announced he would elevate sitting Commissioner Cheryl LaFleur to become Chairman of the Commission, replacing Bay in that role. It should be noted LaFleur has been on the Commission since 2010 and has been, at various times, Acting Chairman and full Chairman. In fact, Norm Bay was elevated by Obama to become Chairman, replacing LaFleur in that role. Did LaFluer leave in a huff? No. She stayed to do the important work of the Commission. Now that the roles are reversed, Bay seems to be bent on revenge against Trump–placing important pipeline projects in danger of not getting timely approvals. It takes three members to have a quorum, to approve projects. Some (including THE Delaware Riverkeeper) are pushing for a block on new appointments to FERC–meaning FERC’s work stops cold. Three critically urgent M-U projects have asked FERC to approve their projects THIS WEEK, before Bay leaves: NEXUS (Spectra Energy), Leach XPress (Columbia Pipeline/TransCanada), and Atlantic Sunrise (Williams)…
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If we had a nickle for every time we’ve heard, read or written the sentiment, “If antis don’t want to extract ‘fracked gas’ anymore, why don’t they show us how it’s done”–we’d be rich! The point: without oil and gas, our modern way of life would cease. Stop. Kaput. No more. We are totally dependent on fossil fuels for our existence. Since New York Gov. Cuomo doesn’t seem to want nasty “fracked gas” coming into his state from Pennsylvania (witness his block of the Constitution Pipeline), perhaps PA and all other states sending natural gas to NY should shut the spigots off for a while. It’s fun to muse, what would happen if?… Well, we don’t have to wonder what would happen. We have a great example. In Central New York in January 1977 residents of Syracuse faced a blizzard and a shortage of natural gas. It got so bad factories, schools and other entities that use natural gas had to shut down. Here’s how it looked forty years ago in Syracuse…
Hart Energy’s Marcellus-Utica Midstream Conference and Exhibition was held this week in Pittsburgh. Although MDN could not be there in person, there are plenty of reports about what was said. Perhaps the most interesting we’ve read are comments by keynoter Alan Armstrong, CEO of Williams. Among the startling remarks Armstrong made: He expects natural gas production in the Marcellus/Utica to grow by 65% over the next five years–from 23 to 38 billion cubic feet per day (Bcf/d). Yikes! He also said there are currently 60 rigs operating in the M-U, which is “not nearly enough.” In order to meet growing demand, Armstrong says some 100 rigs are needed. Double yikes! Here’s some more pickings from what was said at the conference…
Can you smell it? We sure can. It’s called hope. Not even a full week in the new Trump Administration, hope can be found everywhere. Liberal Democrats still aren’t sure what hit them. Let us help. It’s competence. It’s someone who gives a damn about the average American. It’s someone who believes the country, as it was founded, is the best country in the world. Donald J. Trump. He’s blown into Washington, DC like a hurricane and things are changing so fast most of us can’t keep up. Case in point: On Tuesday, Trump’s second full day on the job (last Friday and the weekend don’t count), Trump signed an Executive Order “Expediting Environmental Reviews and Approvals For High Priority Infrastructure Projects.” What are ‘high priority infrastructure projects’? A document has leaked, originally compiled by Trump’s transition team, of 50 ‘Emergency & National Security Projects’ that are infrastructure projects–projects the Trump Administration believes should be worked on immediately. Project #20 in the list is Dominion’s Atlantic Coast Pipeline (ACP), a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Number 20! How cool is that? No, this doesn’t mean Trump can simply order it approved like some sovereign or tinpot dictator. Our rules and laws must be followed. What it does mean is that the Federal Energy Regulatory Commission (FERC) will now receive enormous pressure to quit dragging its feet and to “fast track” the review for ACP. It means hope on now on the horizon…
Labor unions, typically big Democrat supporters, are increasingly in love with Donald J. Trump. Why? Because Trump (unlike Barack Obama) is actually pushing ahead with major infrastructure project improvements. He has a list of 50 such high-priority projects (see Hope: Atlantic Coast Pipe on Trump List of High Priority Projects). As we previously reported, Trump signed executive orders earlier this week to restart the momentum on two important pipeline projects: Keystone XL and Dakota Access Pipeline (see
Rabidly anti-drilling organizations like the Philadelphia-based Clean Air Council (CAC) have been using the deep pockets of their contributors to stir up dissent against Sunoco’s Mariner East 2 NGL pipeline, particularly in towns in the Philly orbit (see
Although antis have tried to block major pipeline upgrades in the northeast/New England region, Spectra Energy continues to have success with building and completing its projects. Recently Spectra’s Algonquin Incremental Market (AIM) project, which built ~37 miles of new pipeline and half a dozen new compressor stations along the Alogonquin Gas Transmission pipeline, went into service (see
National Fuel Gas Company (NFG), the Buffalo-based utility giant with both a drilling subsidiary (Seneca Resources) and a midstream/pipeline subsidiary (Empire Pipeline) filed an application with the Federal Energy Regulatory Commission (FERC) in March 2015 for a pipeline project they call Northern Access 2016 (later renamed to simply Northern Access Project, dropping the “2016” part). 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 (see
The Mountain Valley Pipeline (MVP) is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission in October 2015, is being built by EQT, NextEra Energy and several other partners including WGL (see today’s companion story). The project has faced stiff opposition from landowners in West Virginia (see
Last week the Federal Energy Regulatory Commission (FERC) approved Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects (see
Over a year ago the mighty Transco turned bidirectional, sometimes sending gas northward from the Gulf (as it’s done for 50 years), and now, sometimes sending gas from the Marcellus/Utica southward, to the Gulf. Much more gas will head south once the Atlantic Sunrise Pipeline project gets built (see
On Monday the New Jersey Pinelands Commission, which oversees a stand of scrub pines in South Jersey, held a public hearing to listen to comments on a plan to build a 22-mile pipeline through the scrub pines, burying it alongside the road so as to not disturb any spindly trees. The pipeline will supply clean-burning natural gas to a power plant currently fed by coal, cleaning up the air and lowering CO2 emissions. But dunderheads in the area are still opposed–largely incited by radical environmental groups like the NJ Sierra Club and the odious Food & Water Watch, who spread lies about the project. So many people turned up for the meeting, it maxed out the meeting room of 260 and some had to wait outside in the rain (which didn’t sit well with the pampered snowflakes). Predictably many who showed up wanted to go on record as opposed to the project. Isn’t that always the case? It’s easy to motivate people to attend a meeting when they’re against something–much harder to attract people who support something. At any rate, the surprising thing about yesterday’s meeting were the many people who turned out to support the pipeline. Also predictable, at least one anti (from the odious Food & Water Watch) couldn’t contain herself and had to be ejected for disrupting the meeting…
President Trump is wasting no time in correcting the mistakes of the Obama Administration. Yesterday Trump signed a pair of Executive Orders meant to restart and advance the XL Keystone Pipeline and the Dakota Access Pipeline projects. The orders include a requirement that the pipes manufactured for the projects be manufactured right here at home, in the U.S. The orders in no way require the projects to get completed, they are simply meant to help clear regulatory hurdles so the projects’ builders can get moving again. Predictably the action is making radical fossil fuel haters apoplectic…
PennEast Pipeline is a very important $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. It will feed local utilities and power generation plants along its route. In April 2016 the Federal Energy Regulatory Commission (FERC), which oversees permitting for the pipeline, told PennEast the agency would extend the amount of time they are taking until December 2016, rather than the original target of August, to complete their environmental review (see
Yesterday the U.S. Pipeline & Hazardous Materials Safety Administration (PHMSA) published a final “rule” (actually 31 pages of rules, which we’ve included below) in the Federal Register, which will become law (i.e. official regulation) on March 24th. The new “rule” requires pipeline operators to report incidents or accidents by phone within one hour of when they become aware of the incident/accident. It also steps up drug and alcohol testing requirements for workers. Here’s the latest in unlegislated laws to come down from on (Washington, DC) high…
A former U.S. Steel pipe manufacturing plant near Pittsburgh (in McKeesport) has been leased to Dura-Bond Industries and will re-open in the next 6-9 months, according to the president of Dura-Bond. The plant will hire around 100 people (fantastic news for Pittsburgh). According to the Pittsburgh Business Times, Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina–will use Dura-Bond pipe. Our conclusion: One of the reasons (perhaps THE reason) for the McKeesport facility re-opening is to produce Atlantic Coast Pipeline pipes…