Pipelines

Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Sunoco LP Fined $59K for Fixing Pipe Running Thru 7 Swamps
November 13, 2015November 13, 2015

Talk about damned if you do, damned if you don’t… Sunoco Logistics Partners needed to do maintenance (i.e. fix things) along the Mariner East 1 pipeline–an 80 year-old petroleum pipeline repurposed to flow natural gas liquids (NGLs). Some of the places where they need to fix it, the pipeline runs underground beneath a number of swamps–smelly, stagnant water where mosquitoes with West Nile virus breed. Today swamps are called “wetlands.” Go figure. Because Sunoco didn’t get a “Mother May I?” permit from the PA Dept. of Environmental Protection (DEP) before fixing the pipeline in seven swamps, the DEP has fined the company $59,000. No doubt if Sunoco had waited for permits issued in triplicate and didn’t fix the pipeline, something would have spilled and there would have been an even bigger fine (and lawsuit) for that! A real no-win situation…
Read More “Sunoco LP Fined $59K for Fixing Pipe Running Thru 7 Swamps”
Industrywide Issues | Pipelines | Regulation

Boone Pickens Schools Obama on Keystone Decision, Energy “Plan”
November 13, 2015November 13, 2015

A little common sense from a man who has deep wells of common sense, T. Boone Pickens is a Texas oil man (pronounced “aall man” in a Texas accent) needs no introduction. In the pages of Forbes magazine, Boone Pickens takes President Obama to task for rejecting the Keystone XL pipeline–essentially calling him a non-leader and a coward. We have his column below, titled “President Obama, ‘No’ Is Not An Energy Plan.” The way we’ll introduce it is with a personal story that has nothing to do with nothing, except there’s a tie-in with Boone Pickens. When MDN editor Jim Willis was a (very) young man, he had the privilege and honor to first intern, and later be on staff in the Ronald Reagan White House. Jim was (perhaps still is) a hick from upstate New York. He always felt like Alice in Wonderland when arriving at work at the Old Executive Office Building (part of the White House complex) and seeing people walk by on the sidewalk that you see each night on the news. He could look out a window on the front lawn of the White House and watch the nightly news segments being taped! Very cool stuff for a young guy. Also very cool to see the President in person on rare occasions. The office in which Jim worked was Presidential Personnel–the employment agency for all of the thousands of positions appointed by the President throughout the federal government. In the office where Jim worked were three other people–all ladies. Two of them were the daughters of billionaires–Ross Perot’s daughter Nancy, and Boone Pickens’ daughter Liz…
Read More “Boone Pickens Schools Obama on Keystone Decision, Energy “Plan””
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Gathering Pipeline Draft “Recommendations” from Wolf Task Force
November 11, 2015November 11, 2015

In May, Gov. Wolf announced the creation of a “Task Force on Pipeline Infrastructure Development” that will add an additional layer of interference by anti-drilling “environmental organizations” on where pipelines can and (preferably, from their viewpoint) can’t be laid (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). The Task Force was billed as an “unprecedented collaboration of stakeholders” from government, drillers, midstreamers, and anti-drillers (euphemistically referred to as environmentalists). Wolf and his Dept. of Environmental Protection (DEP) Secretary, John Quigley, appointed 48 members to the task force (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). The pipeline gang has now held four of six meetings (complete with opposition from Wolf’s kook left-wing fringe, see PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed”), and some 12 working groups have (yes) done some work. Yesterday the Pipeline Infrastructure Task Force issued a draft report that they plan to officially submit to the governor and the legislature in February 2016. The (gulp) 335-page document contains 184 “recommendations.” Our concern is that recommendations have a way of becoming regulations in the hands of LibDems. Below is a copy of the full draft report along with the DEP press release announcing its release…
Read More “PA Gathering Pipeline Draft “Recommendations” from Wolf Task Force”
Doddridge County | Energy Services | Industrywide Issues | Pipelines | Summit Midstream | West Virginia

Summit Midstream 3Q15: Current Owner ECP Looking to Sell
November 10, 2015November 10, 2015

Summit Midstream has a small but growing presence in the Marcellus/Utica region largely through purchasing pipeline systems from other companies, including Mountaineer Midstream, Summit’s Marcellus-area pipeline system in Doddridge County, WV. Yesterday the company issued its third quarter 2015 financial results. Of particular note: Summit is majority owned by Energy Capital Partners (ECP), a private equity firm (investment company). ECP is talking about selling their interest. That is, it’s sounding like Summit may soon see a change in ownership. Below is the update on that possible change, along with an update on Summit’s Mountaineer Midstream gathering system…
Read More “Summit Midstream 3Q15: Current Owner ECP Looking to Sell”
Anti-Drilling/Fossil Fuel | Crude Oil | Economic Impact | Industrywide Issues | Pipelines | Regulation

Dictator-in-Chief B.H. Obama Rejects Keystone XL Pipeline
November 9, 2015November 9, 2015

Dictators do as dictators want to do. Last week the U.S. Dictator (used to be called President), Barack Hussein Obama, decided to cave to his kook left enviro-Nazi fringe and rejected granting permits to build the TransCanada Keystone XL pipeline–a pipeline that would flow oil from the tar sands of Canada all the way to the Gulf Coast for refining. It’s a huge blow to our relationship with our neighbors to the north and sets back U.S./Canadian relations by decades. It also prevents 20,000 jobs from being created. But dictators don’t care about any of those trifling details. They want what they want and you have to live with it–because you’re a serf. A dullard. You don’t know what kind of energy you should buy and use–so our Dear Leader will do it for you. No this isn’t a story about the Marcellus/Utica strictly speaking, but it is illustrative of what we are all up against–fossil fuel hysteria–the flames of which are fanned by people like Obama. Below is reaction from a number of senators, labor unions, the oil and gas industry and others to this travesty…
Read More “Dictator-in-Chief B.H. Obama Rejects Keystone XL Pipeline”
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

NEPA State Senator Introduces Bill to Regulate Rural Pipelines
November 5, 2015November 5, 2015

A northeastern Pennsylvania State Senator, Lisa Baker, has introduced Senate Bill (SB) 1044 that would regulate thousands of miles of gathering pipelines (and compressor stations) that are currently not regulated in PA. The bill, introduced on Oct. 26 and co-sponsored by three other Republicans and two Democrats, is colloquially called the Rural Pennsylvania Pipeline Safety Act. The bill gives the Pennsylvania Public Utility Commission (PUC) the power to regulate rural pipeline operators. The Gas Processors Association is watching it closely and says they will be a part of its development going forward. Below we have a brief overview of the bill, along with a full copy as filed on Oct. 26…
Read More “NEPA State Senator Introduces Bill to Regulate Rural Pipelines”
CONSOL Energy | Energy Companies | Industrywide Issues | Noble Energy | Pennsylvania | Pipelines | Regulation | Statewide PA | Wastewater

PA Allows Wastewater Pipelines to be Buried – With No Regulations
November 4, 2015November 4, 2015

A last minute change made to proposed new drilling regulations in Pennsylvania will mean (if adopted) that drillers can bury wastewater pipelines instead of being required to run them on top of the ground. Companies typically use pipelines in areas where it would be disruptive to have multiple truck trips in and out of an area. They’re also used to lower the cost of transporting wastewater (cheaper through a pipeline than by tanker truck). The change came after a letter-writing campaign launched by CONSOL Energy and their joint venture partner Noble Energy. But there’s a bit of controversy over the new standard that permits lines to be buried: the buried wastewater lines aren’t regulated. Not yet anyway…
Read More “PA Allows Wastewater Pipelines to be Buried – With No Regulations”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines

Columbia Pipeline 3Q15: Update on Numerous Pipeline Projects
November 4, 2015November 4, 2015

Yesterday Columbia Pipeline Group (CPG) issued its very first, fully independent quarterly update and financial report since being separated from NiSource into its own 100% independent company. Income was up year over year. The CPG update includes a section devoted to the status of pipeline projects they’re working on. It’s a considerable list of important (for the Marcellus/Utica) projects, including: East Side Expansion, Mountaineer XPress, Gulf XPress, Leach XPress, Rayne XPress, WB XPress, Washington County (PA) Gathering project, Big Pine Expansion project and the Pennant Joint Venture. Here’s the update…
Read More “Columbia Pipeline 3Q15: Update on Numerous Pipeline Projects”
CONE Midstream | Energy Services | Industrywide Issues | Pipelines

CONE Midstream 3Q15: Continued Pipe Expansion in West Virginia
November 4, 2015November 4, 2015

CONE Midstream is a joint venture between CONSOL Energy (the CO in CONE) and Noble Energy (the NE in CONE), formed in August 2014 (see CONSOL & Noble Energy Form New Marcellus Midstream Company). Yesterday CONE issued their third quarter 2015 update. While CONE touted their exponential growth in the volume of gas flowing through their system earlier this year (see CONE Midstream’s Strong Beginning, Hits 500 Mmcf/d 6 Mos Early), there was no mention of current or predicted future flow volumes in the update, nor in the investors conference call. Although there was one vague reference that we found. The 3Q15 update (below) provides the financials for the company and does mention where they have been spending money to expand their system–mainly in West Virginia. Here’s the low down…
Read More “CONE Midstream 3Q15: Continued Pipe Expansion in West Virginia”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Pipelines

Dominion 3Q15: Progress on Atlantic Coast Pipeline, Cove Point LNG
November 3, 2015November 3, 2015

Yesterday Dominion, a huge utility/pipeline company operating in 13 states and organized into multiple corporations, released their third quarter 2015 update. Frankly, the official press release was pretty boring and short–concentrating on the financials. Our chief interest is on the operations side–tell us about the projects under way. So we went trolling through a transcript of yesterday’s investors conference call and sure enough, came up with gold. Tom Farrell, CEO of Dominion, had quite a bit to say in his prepared remarks about the Atlantic Coast Pipeline, the Cove Point LNG export plant, and even about “farmouts” of Utica acreage. Farrell said that surveying is 85% complete for the Atlantic Coast Pipeline, and engineering is 75% complete with some contracts for pipe already awarded. Farrell said that overall, the Cove Point project is now 47% done and there are 1,300 workers on site now. Exciting! But what’s this business about farmouts?…
Read More “Dominion 3Q15: Progress on Atlantic Coast Pipeline, Cove Point LNG”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia | West Virginia | Wetzel County

Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp
November 2, 2015November 2, 2015

Cow Knob Salamander

Contrary to what anti-fossil fuelers would have you believe, midstream companies building big pipeline projects DO listen to concerns and they DO change the route of a pipeline to address those concerns–like changing the route to minimize environmental impacts or to address the concerns of landowners. For example, Dominion has just announced it filed route changes for the Atlantic Coast Pipeline, a $5 billion natural gas pipeline running from West Virginia through Virginia and into North Carolina. The changes are made to minimize impacts on salamanders in two locations, to minimize impacts on a historic district, and to avoid crossing a swamp (yes, a swamp). Somewhere along the way in the past 30 years swamps became precious ecological assets instead of pools of stagnant, smelly, mosquito-infested water that need to be drained (go figure). Dominion is willing to play along. “Hey, if that smelly swamp is important to you, we’ll spend an extra $XX million and go a different route.” Dominion is not alone. Theirs is just the latest example that totally refutes the yarns spun by ninny nanny antis who blat about evil Big Pipelines and how they destroy everything. Here’s the latest “we’ll make some adjustments to the route to keep everyone happy” notice from Dominion…
Read More “Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits
November 2, 2015November 2, 2015

It was just two weeks ago that MDN posted an article saying the New York Dept. of Environmental Conservation (DEC) has had enough time to approve stream-crossing permits for the much-needed Constitution Pipeline. It’s now time to force their hand (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). As we wrote in that piece, the DEC risks the very real threat that the Federal Energy Regulatory Commission (FERC) may step in and force the DEC to issue the permits. Now a high-ranking official with the DEC has essentially said the same thing we did–on the record…
Read More “DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits”
Economic Impact | Industrywide Issues | Ohio | Pipelines | Statewide OH | Taxation

OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!
November 2, 2015November 2, 2015

In a somewhat related story posted today, MDN tackles the thorny issue of taxing pipelines in Pennsylvania. As serendipity would have it, last week Energy in Depth posted an excellent article on the financial impact pipelines are having in Ohio. Would you believe it if we told you that not only will an astounding $8 billion be spent to build new pipelines in the Buckeye State in 2016, but also an estimated $360 million in ad valorem property taxes (taxes on pipelines) will roll in to local municipal coffers. Next year. And every year thereafter! Here’s the numbers broken down by who is doing the spending and paying the taxes, and which pipelines will generate the most economic activity in Ohio next year…
Read More “OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!”
Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Taxation

Is it Time to Tax Big Pipelines in PA?
November 2, 2015November 2, 2015

An Associated Press (AP) story appearing in multiple newspapers and in online outlets has returned to the meme of how unfair it is that pipelines in Pennsylvania are not taxed, as they are in other states like New York, Ohio and West Virginia. Perhaps they have a point? No, MDN isn’t going “soft”! We’ve long made the argument that a permanent structure in the ground should benefit landowners beyond a one-time, up-front payment (see the suggestion by Bryant LaTourette made at the Constitution Pipeline scoping hearing in April 2014: Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The counter to landowners receiving ongoing royalties for pipelines is the argument of electric power lines. They run everywhere over people’s property. You can’t build a structure under or near such lines once they are in place. Yes, they can be taken down/removed (i.e. not “permanent”), but when was the last time that happened? Landowners are not given an ongoing royalty for the electricity flowing through power lines that criss cross their land. Why would you grant an ongoing payment/royalty for a pipeline in the ground if you don’t for a power line above the ground? You see this is a thorny, complex issue. Although individual landowners in states like New York don’t receive an ongoing royalty for pipelines, the pipelines themselves are considered property and pipeline companies are taxed for having them in the ground, giving a community-wide benefit to all residents in a town or village. We’ve remarked before that the property taxes where we live (in NY) have gone DOWN because of a local pipeline. When’s the last time you heard about taxes going down in New York State?! In Pennsylvania, pipelines are NOT taxed, and therefore taxpayers in those communities don’t benefit. That’s the bone of contention…
Read More “Is it Time to Tax Big Pipelines in PA?”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed”
October 30, 2015October 30, 2015

About 20 hippie retreads showed up in Harrisburg, PA on Wednesday to protest outside of the Dept. of Environmental Protection (DEP) regional office in Harrisburg to protest the fourth meeting of Gov. Tom Wolf’s Pipeline Infrastructure Taskforce. In May Gov. Wolf announced he was forming a taskforce to study and make recommendations on how the state can better work with (i.e. control) where local gathering pipelines are installed (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). DEP Secretary John Quigley packed the task force with 42 members, most of them government employees (beholden to Wolf/Quigley for their jobs) as well as some from the “environmental” community and a few from the pipeline industry (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). The gang of 42 was meeting for the fourth time in an effort to complete a draft report by mid-November. Some of the best and brightest gathered outside, including THE Delaware Riverkeeper, Maya van Rossum, to protest. Quigley called the assembled antis “badly misinformed”…
Read More “PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed””
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County | UGI Energy Services | Wyoming County (PA)

UGI Completes Auburn Loop Pipeline in NEPA, Benefits Cabot O&G
October 29, 2015October 29, 2015

Way back in May 2014 MDN told you that UGI Energy Services, a subsidiary of UGI (a utility company in northeast PA) would build two new pipelines in northeast PA for $80 million that will allow them to transport cheap, abundant, locally extracted natural gas from Cabot Oil & Gas in Susquehanna County to residents in the greater Scranton/Wilkes-Barre area (see UGI Energy Building 2 New Pipelines in NEPA for Cabot O&G). One of those two projects was completed last November (see UGI Turns on New Pipeline for Cabot in NEPA). Earlier this week UGI completed the second project, called the Auburn Loop–9 miles of new pipeline that parallels existing pipeline and, along with compressor upgrades, allows UGI to pump an additional 270 million cubic feet per day (Mmcf/d) of Marcellus Shale gas from Susquehanna County, PA to the Scranton area…
Read More “UGI Completes Auburn Loop Pipeline in NEPA, Benefits Cabot O&G”