Pipelines

Electrical Generation | Industrywide Issues | Pipelines

Electric Grid & NE Pipeline Companies Get Up Close and Personal
July 31, 2015July 31, 2015

PJM Interconnection is a regional electric transmission organization that coordinates wholesale electricity for 13 states and the District of Columbia. PJM, headquartered in Valley Forge, PA, covers the electric grid in the Marcellus/Utica region, including PA, OH, WV, MD, KY and VA. It is the world’s largest competitive wholesale electricity market with 900 members serving 61 million people! In a clear signal just how important shale gas has become for electric generators, PJM yesterday announced yesterday an agreement (deal?) to work more closely with a group of the biggest pipeline companies in the Marcellus/Utica “to work more closely with each other to improve operational planning and address growing interdependence between the electric and natural gas industries”–at least through June 2016. Working more closely means sharing non-public information back and forth between PJM and the pipeline companies…
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Energy Services | Industrywide Issues | Pipelines | Tallgrass Energy

1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1
July 30, 2015July 30, 2015

Something really big is about to happen in the Marcellus/Utica region. Starting August 1, the Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, will reverse the flow for a large and important section of the pipeline. On August 1, the section of REX from Monroe County, OH to Mexico, MO will reverse the flow and carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. This flow reversal has the power to a) increase prices northeast drillers receive for their natural gas, and b) lower the cost of natural gas for consumers (and industrial companies, and electric generating plants, etc.) in places like Chicago. It is a win/win scenario. It is so important, and will have such a profound affect on natgas prices in the Midwest, that our friends at NGI’s Daily Gas Price Index have created a “REX Tracker”–a free daily chart updating the price of natural gas along the REX’s Zone 3 section…
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Commodity Price | Energy Companies | Industrywide Issues | Pipelines | Range Resources Corp

2 Pipelines Will Raise Gas Sale Price by $1 for Range Resources
July 30, 2015July 30, 2015

As we told you yesterday, Range Resources is excited about two pipeline projects that will go online soon–Spectra Energy’s Uniontown to Gas City (U2GC) Project and Mariner East I–Sunoco Logistics’ NGL pipeline from western PA to the Marcus Hook refinery near Philadelphia. On the quarterly analyst conference call yesterday, Range Resources CEO Jeff Ventura led off with a discussion about those two projects. To point out the importance of pipelines, these two projects will mean, according to Ventura, that Range will get $1 per Mcf more for their production once the pipelines go online. That’s a huge increase–as much as 33%–over what they receive now. Here are Ventura’s enlightening comments from yesterday’s conference call…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Antis Plan to Protest Pipeline Talk Tonight in Lancaster County
July 28, 2015July 28, 2015

A small group of anti-fossil fuel protesters plans to disrupt an information meeting being hosted by the Chamber of Commerce in Lancaster County tonight. The event will feature representatives from Williams discussing and sharing information about their planned $3 billion Atlantic Coast Pipeline project–a project largely embraced by the public but opposed by a few small pockets of dedicated protesters, one such group being Lancaster Against Pipelines. The Atlantic Coast project will flow Marcellus Shale gas to Mid-Atlantic and southern states. Most of the protesters are too cheap to buy a $25 ticket to the event, so they’ll stand outside and make fools of themselves by chanting and hollering at those who enter the meeting. We encourage a contingent of pro-drillers to show up and stand outside to show support for the project. It’s time to show everyone that supporters far outnumber detractors…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East Pipeline Uses Eminent Domain Against SWPA Landowners
July 28, 2015July 28, 2015

Confession: We have a tough time with eminent domain cases filed by pipeline companies. We believe property rights are sacrosanct–you don’t tell me what I can and can’t do with my property, and I don’t tell you what you can and can’t do with your property. But then zoning laws enter the picture. And statewide bans on fracking. Etc. What happens if all but a handful of landowners sign up to allow a pipeline? Should an entire project that when built results in a greater “good” for society get nixed because of half a dozen of holdout landowners? Tough tough issues. The latest skirmish comes from Washington County, PA where Sunoco Logistics has filed eminent domain cases against a handful of landowners who won’t allow new construction through their property for the Mariner East Pipeline project. Sunoco has taken them to court and seeks leases on a total of 11 acres…
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Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline | UIL Holdings

UIL Invests $80M in Kinder Morgan’s Northeast Energy Direct Pipeline
July 28, 2015July 28, 2015

UIL Holdings, a Connecticut-based utility with 725,000 electric and natural gas customers in two states, is investing $80 million in Kinder Morgan’s Northeast Energy Direct (NED) natural gas pipeline project that will stretch from NY to near Boston, MA to bring cheap, abundant and clean-burning natural gas to New England. One of UIL’s subsidiary companies is Berkshire Gas Company, one of NED’s anchor shippers. Berkshire, you may recall, is at capacity now with respect to natural gas supplies they receive from Kinder’s Tennessee Gas Pipeline. Berkshire has put a moratorium on accepting any new hookups for natural gas in Franklin County, MA (see Guts: No New Pipeline in MA? Then No New Natgas for Utility Customers). You may also recall that UIL is the company that offered the City of Philadelphia the best deal it will ever get to sell the city-owned Philadelphia Gas Works utility, a deal ultimately scuttled by the Democrat-controlled–and profoundly corrupt–Philadelphia City Council (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). UIL will get a 2.5% ownership stake in NED in return for it’s $80M investment…
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Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Cabot Says Constitution Pipeline Construction to Begin this Fall
July 27, 2015July 27, 2015

Last Friday during the Cabot Oil & Gas quarterly earnings call update with analysts, Cabot’s CEO Dan Dinges provided an important update on the Constitution Pipeline, a 125-mile pipeline that will stretch from the gas fields of Susquehanna County, PA into New York, to Schoharie County. It is a critically needed pipeline to get Cabot’s natural gas in Susquehanna County to markets throughout the northeast and New England. Although Williams is the lead company building the pipeline, Cabot is the other primary partner in the project. Currently the Constitution is 100% FERC authorized and they have 100% of the rights of way leases signed for the project. The only hold-up is the New York State Dept. of Environmental Conservation in granting 401 Water Quality Certificates that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. According to Dinges, they expect NY to issue those permits any day now…
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Energy Services | Industrywide Issues | Litigation | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

Pipeline Case: OH Judge Finds Public Right to Free Flow of Energy
July 27, 2015July 27, 2015

There are a number of pipeline battles currently going on. While residents in New England tend to be more unreasonable than most when it comes to pipelines, landowners in other regions also oppose new pipeline construction. Some of their opposition stems from nutty opposition to fossil fuels. But some opposition is legitimate–concerns over where the pipeline will go through a property. Or concerns about lease terms/compensation. One thing that doesn’t hurt anyone is to allow a survey of a property. We would encourage landowners to begin their dialog about a potential pipeline with the surveyors–to make companies aware of your concerns about the routing of a pipeline across your land. But some holdout landowners unreasonably resist even a survey–and they’re consistently losing in Ohio courts. Specifically we’re talking about the NEXUS Gas Transmission pipeline–a $1.5-$2.0 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada. We recently told you that in most cases when landowners refuse access to surveyors, they lose (see NEXUS Pipeline Sues for Survey Access, Wins Most of the Time). Below we have news of a court decision from Fulton County, OH in which the judge outlines his reasons for ruling in favor of NEXUS to allow surveys to commence on properties for 15 hold-out landowners. The judge’s ruling is instructive. In it, the judge says the general public has a “right” to expect a “free flow” of energy products…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

Group of Bostonians Use Religion to Protest 5-Mile Natgas Pipeline
July 27, 2015July 27, 2015

Every now and again it’s important to connect the dots–yet again–for new readers to MDN. Those who have been reading MDN for several years know that the category of what we broadly call anti-drillers don’t oppose natural gas shale drilling and pipelines and injection wells and railroad transloading terminals and…the list goes on…because of the sometimes legitimate issues of noise and truck traffic and lease abuses, etc. Every industry has it’s negatives. But that’s not why these people in their heart of hearts oppose natural gas. They oppose it because it’s a fossil fuel–which is, as we point out, an irrational position to hold. It’s irrational because the very sneakers on their feet they wear in protest marches, the clothes on their bodies, the materials their homes are built from, the cars they drive, the televisions they watch, the cell phones their faces are glued to, are all products made by with with fossil fuels. Plastics = fossil fuels. Plastics are hydrocarbons–you did know that, right? Hydrocarbons are fossil fuels–oil and natural gas etc. Like cancer metastasizes and invades its host, so too does the cancerous philosophy that mankind by burning fossil fuels is killing Mother Earth. So-called global warming is the philosophy–the point of view–that drives and justifies anti-drillers’ irrational opposition to shale energy. The latest example comes from a group of people in Boston (ab)using religion to oppose a 5-mile pipeline. The stated reason for their opposition? “Climate change is the pressing moral issue of our time, and religious leaders must speak out against practices that are destroying the environment”…
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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Washington County

EQT Midstream Building $250 Million Pipeline – for Range Resources!
July 24, 2015July 24, 2015

In a show of “coopetition” or cooperative competition, EQT Midstream, a division of major Marcellus/Utica driller EQT Corporation, is going to build a $250 million, 32-mile “header pipeline” for arch-rival Range Resources in southwestern Pennsylvania to “support Range’s dry Marcellus and Utica development.” The new pipeline, which will be built in two phases in 2016 and 2017, will provide Range with more than half a billion cubic feet of natural capacity per day…
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Energy Services | Industrywide Issues | Luzerne County | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

PennEast Pipeline Offers Spirited Defense, Counters False Claims
July 24, 2015July 24, 2015

How do you break through the ongoing misinformation pumped out by mainstream media and lying environmental organizations like the Sierra Club and THE Delaware Riverkeeper when it comes to the necessity, wholesomeness and righteousness of pipeline projects like the PennEast Pipeline planned to run from the Wilkes-Barre, PA area to the Trenton, NJ area? Peter Terranova, chairman of the PennEast Pipeline Board of Managers, is taking his message about the PennEast directly to the citizens by publishing a guest viewpoint in Wilkes-Barre’s The Citizens’ Voice newspaper. In his column Terranova lays out the case for the PennEast–and addresses some of the lies being spread by ne’er-do-well “environmental” organizations…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

No Work Gets Done at Inaugural PA Pipeline Task Force Meeting
July 23, 2015July 22, 2015

In May, Pennsylvania Gov. Tom Wolf announced the formation of the Pipeline Infrastructure Task Force (PITF)–an effort to “promote unprecedented collaboration of stakeholders to facilitate the development of a world-class pipeline infrastructure system” (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). Last week we told you who Wolf appointed to the 42-member committee–one-third of them report to him in one fashion or another (working for the state government), and over one-half of the members work for either local, state or federal government (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). In other words, Wolf packed the so-called task force with people who don’t know a darned thing about the private sector and how to run a business. Yes, it is a train wreck waiting to happen. Wolf and his minion DEP Sec. John Quigley intends to slow down the pace of pipeline construction in the state just when it needs to speed up. Such are the consequences of voting for the wrong candidate. Yesterday the PITF held it’s first official meeting with Quigley chairing it. Interestingly, there was talk from Quigley about midstreamers getting a “social license”…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Energy Takes Cecil, PA Back to Court over Compressor Stn
July 23, 2015July 22, 2015

As we noted in June, after more than four years of resisting, Cecil Township, PA–under court order–finally approved a compressor station proposed by MarkWest Energy (see Cecil Twp Approves MarkWest Compressor, with Poison Pill Conditions). We also noted that Cecil pulled a fast one with their so-called approval. The reason they got away with violating the court ordered deadline was because they were supposedly bargaining in good faith with MarkWest–nailing down final details both sides could live with. But it wasn’t good faith on the part of Cecil. At the last minute, Cecil tacked on 26 “conditions” making it all but sure that MarkWest would not agree to the plan. And sure enough, MarkWest has had to take Cecil, one of seven selfish towns that sued to overturn the Act 13 law, back to court yet again. Perhaps the judge should just remove the town supervisors this time since they habitually refuse to obey the law?…
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Anti-Drilling/Fossil Fuel | Crime | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines

Wrath of Kann: Lancaster Anti-Driller Guilty of Disorderly Conduct
July 23, 2015July 22, 2015

Back in April MDN told you about a loud mouthed anti-drilling protester in Lancaster County, PA who was arrested and removed from a public meeting for disorderly conduct. That is, she wouldn’t shut her mouth. So the officials running the meeting removed her (see Wrath of Kann: Lancaster Anti-Driller Arrested/Ejected from Mtg). The meeting was an educational forum about home rule and what role the town can and should play when it comes to regulating things like pipelines. Audience members were permitted to ask questions only, but that didn’t sit well with a local anti-driller who refused to ask questions and instead pontificated. The audience was clearly agitated with her (watch the video below) so police present at the meeting arrested and removed her. A judge has found her guilty as charged…
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Industrywide Issues | Pipelines

Mickey Mouse Loves Marcellus Shale Gas – More Gas Heading to FL
July 22, 2015July 22, 2015

Sit tight Florida: Marcellus Shale gas is on the way! That’s the message from Genscape and Tudor Pickering Holt & Co. When will Marcellus gas make its way to Florida? Actually, it already is. In fact, Mickey Mouse (i.e. Disney World) is already benefiting from cheap, abundant, clean-burning Marcellus Shale gas. But there’s plenty more on the way beginning later this year when both Kinder Morgan’s Tennessee Gas Pipeline system and Spectra Energy’s Ohio Pipeline Energy Network are completed and begin sending gas to the Sunshine State…
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Industrywide Issues | Kinder Morgan | Pipelines | Research | Spectra Energy | Transco

Report Says New England Pipelines Not Cost Effective for Maine
July 22, 2015July 22, 2015

A disappointing report was recently delivered to the Maine Public Utility Commission (PUC) that may result in Maine sticking its head in the proverbial sand along its lovely coastline and miss out on cheap, abundant, clean-burning natural gas. In an effort to lower electric power prices, in 2013 the Maine Legislature authorized the PUC to spend up to $75 million a year to buy up to 200 million cubic feet per day of natural gas through an “energy cost reduction contract” (ECRC) that would be paid for by electric ratepayers if it is cost effective. Three companies provided proposals to the PUC: Spectra Energy, Tennessee Gas Pipeline and Portland Natural Gas Transmission System. The PUC hired the Boston-based London Economics International (LEI) to evaluate the proposals and the report is in (full redacted copy below). LEI says none of the three proposals provide enough cost savings to Maine consumers to make them worthwhile…
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