Pipelines

Industrywide Issues | Pipelines | Regulation

Guidelines for Using Drones in the O&G Industry
July 22, 2016July 22, 2016

On July 13, 2016, Congress passed legislation to allow limited drone use by the energy industry as part of the reauthorization bill for the Federal Aviation Administration (see Congress Approves Unmanned Drone Use in O&G Industry). The legislation defines drones as “small unmanned aircraft” weighing less than 55 pounds. Pipeline companies, in particular, can make use of drones with cameras to fly along pipeline routes to spot hazards or potential problems. And they can do it much more quickly and efficiently than having boots on the ground. The legal beagles at top energy law firm Babst Calland have written a “Pipeline Safety Alert” briefing paper that tackles the updates to the FAA regs allowing drones in the oil and gas industry–what’s allowed, and what isn’t. If you’re a midstreamer or even a driller, it’s worth your time to read this short paper…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Spectra Energy | Westmoreland County

Feds Find More Corrosion, Issue Order re Exploded TETCO Pipe in PA
July 21, 2016July 21, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months. One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). However, the other three lines have remained idle pending further investigation and won’t be online again until at least November (see Ruptured TETCO Pipeline in PA Offline Until November). In an order issued on Tuesday, federal regulators with the Pipeline and Hazardous Materials Safety Administration (PHMSA) are requiring Spectra Energy to perform more testing and take corrective actions on the remaining three lines. Although the cause of the explosion is still not 100% verified, it’s still thought to be corrosion around welded pipe joints, i.e. bad pipe tape…
Read More “Feds Find More Corrosion, Issue Order re Exploded TETCO Pipe in PA”
Energy Services | Industrywide Issues | Lackawanna County | Lebanon County | Monroe County | Pennsylvania | Pipelines | Regulation | Transco | Williams

PA Game Commission Cuts ROW Deal with Atlantic Sunrise Pipeline
July 21, 2016July 21, 2016

Atlantic Sunrise Pipeline map – click for larger version

More progress for the Williams Atlantic Sunrise Pipeline project. Atlantic Sunrise is a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. It is a much-needed pipeline to move more Marcellus gas south, to new markets. The progress is this: the Pennsylvania Game Commission has cut a right-of-way deal to allow the pipeline to traverse game lands in northern Lebanon County–including a crossing of the Appalachian Trail. But have no fear, Williams plans to drill under the Trail and not disturb the surface. In return for the right to cross a few acres of certain state-owned game lands in Lebanon County, the state is picking up a whopping 285 acres owned by Williams in Monroe and Lackawanna counties…
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Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Regulation | Statewide NY | Williams

Constitution Pipeline Gets a Little (Court) Help from Its Friends
July 21, 2016July 21, 2016

Constitution Pipeline map – click for larger version

In perhaps the sleaziest of sleazy political moves, New York Gov. Andrew Cuomo made the non-science-based political decision to deny the Constitution Pipeline stream crossing permits in April (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The man is a menace to all New Yorkers. He caves to his radical, fringe left on a regular basis, as he did with his decision to deny the Constitution Pipeline. Williams, Cabot and the other partners in the project aren’t taking it laying down. They sued New York State in federal court with the very real possibility that the court will neuter NY’s decision-making role in the project (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). The Constitution doesn’t stand alone. A number of national industry organizations are coming to the Constitution’s defense. On Tuesday the Natural Gas Supply Association (NGSA) and other groups together filed an amicus curiae brief with the U.S. Circuit Court of Appeals for the Second Circuit. “Amicus curiae” means “friend of the court” in Latin. The brief (full copy below) makes the point that states should not be the tail that wags the federal-oversight-of-such-projects dog. That is, the New York Dept. of Environmental Conservation (DEC) is preventing the Federal Energy Regulatory Commission (FERC) from doing its job. One government entity (especially a state) cannot block the power and authority of another government entity (in particular the federal government)…
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Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Spectra’s Access Northeast Pipe Wins Important Approval in Maine
July 20, 2016July 20, 2016

Click for larger version

In July 2014 Spectra Energy unveiled plans to deliver an extra 1 billion cubic feet of natural gas per day to New England and beyond by expanding the existing Algonquin and Maritimes pipeline systems (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project was eventually named the Access Northeast Project, a direct competitor to Kinder Morgan’s proposed Northeast Energy Direct (NED) project. In February of 2015 we observed and asked the question, is Spectra’s project pulling ahead of Kinder Morgan’s project (see Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?). It was our observation at the time that Kinder Morgan’s project is mostly “greenfield”–meaning they have to dig new trenches and lay new pipe in places where no pipeline currently exists–was vehemently opposed by antis, while Spectra’s project which lays new loops of pipe next to existing pipes in existing trenches was opposed, but with less vehemence. It seems our observation was prescient, as Kinder later canceled its project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Make no mistake, Spectra Energy still faces a steep uphill battle–but they are making progress. Evidence of that came yesterday when regulators in the state of Maine approved Spectra’s plan in their state. Or more accurately, they approved passing along some of the cost of Spectra’s proposed expansion to Maine electric rate payers, who would see far lower electric rates if the pipeline gets built (it will feed natgas-fired electric generating plants in the state)…
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Accidents | Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Rex Energy

PA DEP Fines Stonehenge $1.5M for Damaging 2 Butler County Swamps
July 19, 2016November 29, 2018

A year ago MDN told you about a new gathering pipeline project in Butler County, PA. Rex Energy contracted with Stonehenge Energy Resources to build a gathering system in Butler County (see Rex Energy Hires Stonehenge to Build Gathering Pipeline in PA). The new system got built last year and now provides Rex with an additional 400 million cubic feet per day of natural gas pipeline capacity. The Stonehenge gathering system delivers Rex’s gas to MarkWest Energy’s Bluestone processing plant. When Stonehenge built the pipeline, they had a few minor accidents. Some dirt slid down a hill into a creek. The creek empties into a couple of swamps. Ergo, some of the dirt got into the swamps. For that little mishap, Stonehenge has agreed to pay the PA Dept. of Environmental Protection a $1.5 million fine. DEP Acting Secretary Pat McDonnell called the minor mishaps “egregious and avoidable.” Whatever…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

FERC Rejects NY AG’s Anti-Constitution Pipeline Petition
July 18, 2016July 18, 2016

NY AG Eric Schneiderman – petition rejected by FERC

In May MDN told you about a sleazy political move by New York’s corrupt Attorney General, Eric Scheiderman, who petitioned the Federal Energy Regulatory Commission (FERC) to investigate Williams over the Constitution Pipeline, with a recommendation that FERC withdraw its approval of the project (see NY Attorney General Asks FERC to Investigate Constitution Pipe). Schneiderman claimed that Williams was cutting trees along the path of the pipeline before the state had issued stream crossing permits (which it decided not to do). We told you, in a follow-up story, that Schneiderman’s claims of premature tree cutting by Williams was a fraud (see NY AG’s Allegation of Tree Cutting by Constitution Pipe a Fraud). A Binghamton Press & Sun-Bulletin investigation found that some trees along the pipeline’s path in New York State had been cut–but not by Williams. The landowners themselves were cutting the trees in anticipation of the project–to profit from the sale of the timber. On Friday FERC officially responded to the corrupt Schneiderman’s petition by saying, in so many words, to stuff it…
Read More “FERC Rejects NY AG’s Anti-Constitution Pipeline Petition”
Energy Services | Industrywide Issues | Lebanon County | Litigation | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Media Downplays Sunoco’s Huge Court Victory re Mariner East 2
July 18, 2016July 18, 2016

Last Friday MDN brought you the really big news that Sunoco Logistics Partners had won a major appeals court case that recognizes them as a public utility in Pennsylvania with the right to use eminent domain to build the Mariner East 2 NGL pipeline (see Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline). Although Big Green groups like the Philadelphia-based Clean Air Council are attempting to spin the decision as no big deal–it is a big deal, and they know it. So how does the Associated Press, in bed with Big Green, report the decision? This is their headline: “Sunoco clears 1 legal hurdle after pipeline project ruling.” Laughable! It’s more than one hurdle. Sunoco essentially put another 7 points on the board with 5 seconds left to play…
Read More “Media Downplays Sunoco’s Huge Court Victory re Mariner East 2”
Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Sunoco Logistics

Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline
July 15, 2016July 15, 2016

Seems like Sunoco Logistics Partners has been fighting in court for years to get the right to use eminent domain for it’s Mariner East 2 pipeline project. ME2 is a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia–carting ethane, butane and propane to the facility from both the Utica and Marcellus region, where it will be separated and sent on its way to destinations both domestic and international. Because the project technically crosses a state line, opponents have tried to state PA is not the proper government body to oversee it–it should come under the exclusive oversight of the federal government. However, Sunoco LP has maintained from the beginning that it is a public utility, properly regulated by the PA Public Utility Commission (PUC) and not the Federal Energy Regulatory Commission (FERC). The PUC has recognized Sunoco LP and its Mariner pipeline projects as public utilities, with the right to use eminent domain to condemn properties of holdout landowners in PA (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). However, the PUC’s authority and ME2’s right to use eminent domain was challenged in state Common Pleas Court in Cumberland County, which ruled in favor of Sunoco (see PA Judge Rejects Landowners’ Challenge to Mariner East 2 Pipeline). The judge’s ruling was appealed and now PA’s Commonwealth Court has also ruled in favor of Sunoco LP, saying that Mariner East 2 is regulated by both the PUC and FERC, and it has the right to use eminent domain…
Read More “Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline”
Industrywide Issues | Pipelines | Processing Plants | Regulation

Congress Approves Unmanned Drone Use in O&G Industry
July 15, 2016July 15, 2016

Look! Up in the air! It’s a bird…it’s a plane…it’s a,a,a,a…energy drone? Yep. Drones used to inspect pipelines, keep an eye on refineries, processing plants and compressor stations–drones used for just about anything related to the oil and gas industry–have just been approved by Congress. The oil and gas industry is delighted…
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Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Regulation | Transco | Williams

Interior Dept Chides FERC re Atlantic Sunrise Pipe, Bogus Concerns
July 14, 2016July 14, 2016

The Obamadroids are once again ganging up on the semi-independent Federal Energy Regulatory Commission (FERC). Last week the Obama Environmental Protection Agency (EPA) filed comments with FERC critical of the Williams/Transco Atlantic Sunrise pipeline project (see Federal EPA Continues to Fuss over Atlantic Sunrise Route in PA). This week it’s the Obama Dept. of Interior (DOI). The DOI has filed comments with FERC saying Atlantic Sunrise maybe/may/might cause a 2.5 second eyesore for people paddling down the Susquehanna River–they might see a nice grassy knoll where the pipeline runs instead of overgrown, spindly, dying trees instead. Because it’s an official “historic” stretch of river that Captain John Smith may have once traveled, that apparently means not a single tree branch can ever be pruned along the river bank. What a load…
Read More “Interior Dept Chides FERC re Atlantic Sunrise Pipe, Bogus Concerns”
CNG/LNG | Industrywide Issues | Pipelines

Boston LNG Import Terminal Continues to Demagogue Pipelines
July 13, 2016July 13, 2016

One of the opponents of new pipelines to New England has been LNG importers in the region–specifically GDF Suez importing gas at the Everett, MA LNG import terminal, near Boston (see New England Importer Received 59% of All LNG Ship Imports 1H15). LNG imports are one of the primary sources of natgas for New England. The antis holler and scream, “Forget the pipelines. If you must use gas, use LNG. There’s more than enough LNG to supply New England.” In a macro sense that may be true–the world is awash in LNG. But arranging shipments and sources for it takes months, even years. Right now most of the LNG GDF Suez imports comes from Trinidad. The problem with that is, Trinidad’s natgas is drying up and the country is falling behind and not meeting their LNG commitments (see Is New England Heading for Huge NatGas Price Spike this Winter?). It’s not a stretch to imagine that even an average New England winter, coupled with fewer imports from Trinidad, means trouble ahead for New England. We spotted yet another story by mainstream media, this time Bloomberg, quoting the self-serving GDF Suez repeating the same, old hackneyed lies: “It doesn’t make sense to build a pipeline to satisfy demand for 30 to 40 days a year.” Horse manure…
Read More “Boston LNG Import Terminal Continues to Demagogue Pipelines”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

FERC’s Glowing Draft Review of NEXUS Pipeline; Antis Respond
July 13, 2016July 13, 2016

NEXUS map – click for larger version

On Monday MDN brought you the great news that the Federal Energy Regulatory Commission (FERC) has given the $2 billion, 255-mile interstate NEXUS pipeline a glowing draft environmental impact statement (see Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC). NEXUS is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada, via a pipeline that traverses the state of Ohio. We have now what we didn’t have on Monday–a copy of the FERC draft EIS (see a full copy below). You can’t read it and not see the meticulous detail and work that has gone into researching such a project. To falsely claim, as do anti-fossil fuel nutters, that FERC is simply a “rubber stamp” for Big Oil & Gas is not supported by documents like this one. Although the review is glowing, there is one teeny, tiny criticism/suggestion from FERC recommending an alternative route near Green, Ohio. The anti-drilling group CORNballs (our name for CORN, or COalition to Reroute Nexus), is glomming on to that tiny crack of the door and plans to drive a Mack truck through it…
Read More “FERC’s Glowing Draft Review of NEXUS Pipeline; Antis Respond”
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA/MD/DE Pipeline Project Heats Up with Open House Mtgs This Week
July 11, 2016July 11, 2016

This pipeline project has been, until now, completely off our radar screen. As pipeline projects go, it’s pretty small. But building even a single square inch of new pipeline, or expanding a compressor station, is anathema to anti-fossil fuel nutters. So we expect this project will be in the headlines starting this week, with a pair open house meetings in the Philadelphia area (and one in Delaware) where the project will get built. The project is being built by Eastern Shore Natural Gas and is called the 2017 System Expansion project. In March 2015, Eastern Shore ran a non-binding open season to see if customers want more natural gas in the Delmarva Peninsula area (includes most of Delaware and portions of Maryland and Virginia). It looks like Eastern Shore’s customers expressed enough interest that they plan to move forward with an expansion project that will bring new sources of natgas from an interconnection Eastern Shore has with the mighty TETCo (Texas Eastern Company) pipeline near Philadelphia. Below we have details on the expansion project, and details for the open house meetings scheduled for this week in PA and DE…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

PA DEP Begins Review of Mariner East 2 Pipe; August Hearings
July 11, 2016July 11, 2016

Mariner East 2 – click image for larger version

Seems like we’ve been talking about the Mariner East 2 pipeline proposed by Sunoco Logistics Partners, well, forever (see our list of ME2 stories here). Sunoco proposes to build a 350-mile natural gas liquids pipeline that will stretch from eastern Ohio to the Philadelphia area, bringing NGLs from Ohio and western Pennsylvania to the Marcus Hook refinery where those NGLs will get sent to both domestic and international customers. The project has faced stiff opposition and a number of lawsuits. Sunoco LP has had to file numerous eminent domain cases (some of which are still pending). Even though the project is opposed by radicals like THE Delaware Riverkeeper, it will get built–everyone knows it. And so the state Dept. of Environmental Protection (DEP) has launched a review of the project and will hold a series of public meetings in August for the project. Below is the DEP’s announcement about their review and details for the meetings–meetings where supporters need to show up and make their voices heard to drown out the naysayers…
Read More “PA DEP Begins Review of Mariner East 2 Pipe; August Hearings”
Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Regulation | Statewide OH

Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC
July 11, 2016July 11, 2016

Nexus Pipeline Route – click for larger version

The NEXUS Pipeline is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada (see Spectra Energy Files Formal FERC Application for NEXUS Pipeline). It is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. One of the first and key parts of getting a pipeline approved by the Federal Energy Regulatory Commission (FERC) is to submit the project for an environmental impact statement (EIS), performed by FERC. Good news. NEXUS received word late last week that FERC has granted the project a favorable draft EIS. That means FERC is of the opinion that the project will not unduly harm the local environment where it is to get built. A favorable EIS is an indication that FERC will grant its full approval for the project (in due time)…
Read More “Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC”