Pipelines

Butler County | Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants

ETP Announces $1.5B Revolution Pipeline/Plant Project in SWPA
June 9, 2015June 9, 2015

An important new project in the Marcellus/Utica was announced by Energy Transfer Partners (ETP) yesterday. The project, dubbed the Revolution Project, includes a new 100-mile gathering pipeline system in Butler County, PA along with a new cryogenic gas processing plant to be constructed “in western Pennsylvania.” The processing plant will be called the Revolution Plant. A pipeline (called the Revolution Pipeline) will be constructed to connect the Revolution Plant to Sunoco Logistics’ Mariner East NGL pipeline to handle NGLs coming from the plant. Another pipeline will be built to connect the plant to ETP’s Rover pipeline to handle natural gas coming from the plant. Also part of the Revolution Project will be a new fractionation facility to be built at the Marcus Hook refinery in the Philadelphia area. Total price tag for the whole shebang: $1.5 billion…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East Invokes Eminent Domain Against 2 SWPA Landowners
June 9, 2015June 9, 2015

Another “nobody wins” eminent domain lawsuit has been filed by a pipeline company. This time it’s Sunoco Logistics filing for their Mariner East pipeline against two different families/landowners in Washington County, PA. The landowners don’t want the pipeline but Sunoco insists it’s necessary to have those specific properties. The problem is, will an eminent domain claim hold up in court? Last July, two independent administrative law judges working for the PA Public Utility Commission (PUC) ruled that Mariner East is not, according to the definition, a “public utility” (see Setback for Mariner East NGL Pipe – Judges Say Not Public Utility). But then in October, the full board of Commissioners for the PUC voted to send the case back to those judges with instructions to “reconsider” their decision (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). Sunoco has a lot riding on whether or not their claim to be a public utility will hold up in court. If Mariner East is not a public utility, they have no claim to eminent domain powers…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lorain County | NEXUS Pipeline | Ohio | Pipelines | Regulation

CORNy Letter to FERC: NEXUS Pipeline will Contaminate our Creeks
June 9, 2015June 9, 2015

The anti-drillers who inhabit Oberlin (Lorain County), OH are nothing if not determined. In November 2013 Oberlin voted to commit economic suicide by passing a so-called Community Bill of Rights law, which is nothing more than a ban on shale drilling (see Economic Suicide Avoided in 2 OH Cities but Oberlin Pulls Trigger). Of course so-called “home rule” laws have since been overturned by the Ohio Supreme Court (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). The NEXUS gas pipeline is planned to run through the Oberlin area, so a group calling themselves CORN–Coalition to Reroute NEXUS–popped up in Oberlin and surrounding counties to oppose the pipeline. Why? Because it will flow nasty, evil fossil fuels. We call it the CORNy opposition. A member of CORN from the Oberlin City Council has written to the Federal Energy Regulatory Commission (FERC)–which is reviewing the NEXUS project–to say if the pipeline is built, it will “result in the contamination of the streams that produce water for the city’s domestic use.” Just one CORNy lie right after another…
Read More “CORNy Letter to FERC: NEXUS Pipeline will Contaminate our Creeks”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Statewide WV | West Virginia

THIS is the Loyal, Anti-Drilling Opposition in WV?? [Video]
June 9, 2015June 9, 2015

It always helps to know who the loyal opposition is. When we witness anti-drillers at public hearings we’ve attended about regulations and pipelines, we often marvel. This is the opposition? How on earth do they achieve the successes they achieve? We also wonder, do people “in the middle” who haven’t made up their minds about who to believe in the great fracking debate–do they know that these are the people behind the push to eliminate fossil fuels? Would it make a difference if they did know?…
Read More “THIS is the Loyal, Anti-Drilling Opposition in WV?? [Video]”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

NJ Antis Change Gear, Hire Quiet Guy to Head Anti-Pipeline Effort
June 8, 2015June 8, 2015

Anti-drillers in New Jersey must be growing tired of the angry demeanor of their current “movement leaders”–people like Maya van Rossum from THE Delaware Riverkeeper. So they’re putting their chips on a quieter, gentler anti-driller they hope will be more effective in stopping projects like the PennEast Pipeline. NJ antis have hired Thomas Gilbert, 45, a “longtime activist known for his land preservation work” to become the campaign director at New Jersey Conservation Foundation, starting June 15. They’re hoping the NJ Conservation Foundation can be “the one ring to rule them all” by organizing together disparate anti groups to defeat projects like PennEast. Anti-drillers have tried the go-it-alone, not-nice route–so this time they want to try the let’s-all-cooperate-nicey-nice route. It’s the same old hardened anti-drilling philosophy dressed up in a nicer package. But make no mistake–they want to end the use of fossil fuels in New Jersey–and that’s why Gilbert has been hired…
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Anti-Drilling/Fossil Fuel | Exporting | Industrywide Issues | Pipelines

MA Bill Prevents Pipeline Costs from Passing to Electric Customers
June 8, 2015June 8, 2015

Part of the opposition to pipelines in states like Massachusetts centers on the issue of whether or not the gas flowing through the pipeline will get exported. For sure the majority of the gas will be used in places like Massachusetts–and some of that will go to consumers–but a great deal of it will go to electric generating plants, to lower the incredibly high cost of electricity in New England. Because the customers for the gas are electric utilities, and because the utilities don’t have piles of cash laying around, the utilities (in some cases, not all cases) want to pass along some of the cost of the proposed pipelines to electric rate payers. That is, electric customers. You and me. The response from anti-drillers is, “Hey–since a lot of this gas will get exported anyway, not benefiting the state, why should electric rate payers bear the cost of building the pipeline?” And so some anti-drilling state legislators have introduced a bill that would prevent any pipeline cost from being passed on to Massachusetts rate payers if ANY of the gas in that pipeline eventually gets exported. Do anti-drillers, in this case, have a point?…
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Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Mariner East 2 Giving Birth to Twin Pipelines
June 5, 2015June 5, 2015

In November 2014 Sunoco Logistics committed to building the $2.5 billion Mariner East 2 pipeline to increase capacity in moving natural gas liquids like ethane, propane and butane from western Pennsylvania to the Marcus Hook refinery in Philadelphia (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). Yesterday Sunoco said instead of building one Mariner East 2 pipeline, they’re going to build two of them–at the same time, side by side. Sunoco says the plan to add two more Mariner 2s is still tentative–they need to conduct an open season to be sure they can sell contracts for the pipeline before they will fully commit. But as of right now, they’re planning to give birth to “twin” pipelines…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

Penn East Pipeline to File Formal Application with FERC in Next 2 Mos
June 5, 2015June 5, 2015

Where do things stand with the much-needed Penn East Pipeline from the Scanton, PA area to the Trenton, NJ area? According to a Penn East spokesman who met with a Wilkes-Barre newspaper’s editorial board yesterday, the company will likely file a formal application with the Federal Energy Regulatory Commission (FERC) in the next two months, and if all goes well, construction will begin in late 2017. Along the way look for the Delaware River(keeper) Basin Commission to try and screw it up. The DRBC is increasingly controlled (and emasculated) by the whims and fancies of THE Delaware Riverkeeper, a virulently anti-drilling group. Penn East faced down one objection head-on in yesterday’s meeting: this gas will not be exported–it will all be used domestically (most of it in PA and NJ)…
Read More “Penn East Pipeline to File Formal Application with FERC in Next 2 Mos”
Columbiana County | Industrywide Issues | Litigation | MDN Sponsor | Ohio | Pipelines

NEXUS Pipeline Sues Columbiana County Landowners for Survey Access
June 4, 2015June 4, 2015

The NEXUS Gas Transmission pipeline, you may recall, is a $1.5 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 (see NEXUS Gas Pipeline Pre-Files with FERC, New Details Come to Light). A number of landowners in Ohio have been less than cooperative when it comes to surveying their property. One old codger in Medina County, OH threatened he would meet anyone trying to survey his property with a gun (see Medina, OH Landowner Says He’ll Meet NEXUS Surveyors Packing Heat). Two couples in Columbiana County aren’t threatening guns, but they have denied access to NEXUS, repeatedly, and NEXUS has had enough. NEXUS sued the two couples in Columbiana County Common Pleas Court to force them to allow their surveyors on their property…
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Doddridge County | Energy Services | Harrison County | Industrywide Issues | M3 Midstream | Momentum | Pipelines | West Virginia

Construction on WV Stonewall Gather Pipeline Begins, Runs Thru Dec
June 4, 2015June 4, 2015

In early April MDN told you that a section of M3 Midstream’s Appalachia Gathering System (AGS) had been spun off into its own company called Stonewall Gathering System (see M3’s New Stonewall Gathering System Extends Existing AGS in WV). At the time plans were under way to build out gathering pipelines in West Virginia’s Harrison and Doddridge counties, running through Lewis and into Braxton County where the pipeline will connect with Columbia Transmission’s interstate pipeline. The plans have come to fruition and the Stonewall Gathering System is now being built. Incidentally, they’re looking for welders and laborers–but only through local unions…
Read More “Construction on WV Stonewall Gather Pipeline Begins, Runs Thru Dec”
Anti-Drilling/Fossil Fuel | Energy Services | Exporting | Industrywide Issues | New York | Pipelines | Spectra Energy | Westchester County

Anti Group “NOPE” Opposes Spectra Energy New England Pipeline
June 3, 2015June 2, 2015

Both Spectra Energy and Kinder Morgan have competing pipeline projects to move Marcellus Shale gas to New England where it’s desperately needed. Spectra Energy’s project is called Access Northeast and has a number of regional utility partners–companies that want to buy cheap, abundant and clean-burning Marcellus Shale gas–to sell to New Englanders. Spectra Energy’s project will expand several existing pipeline systems and join them together, running from New York through Connecticut and into Massachusetts. Kinder Morgan’s project is called Northeast Energy Direct (NED), which builds a new extension of the mighty Tennessee Gas Pipeline system from New York across Massachusetts, into New Hampshire and back into Massachusetts. Both projects face resistance from nutty fossil fuel haters. The reality for both projects is that although they will deliver an abundance of new supplies of natural gas, which is good during the winter, there will be an oversupply in the summer. You don’t just turn the spigot off on a pipeline. So the plan is to put some of that natural gas on the Maritimes & Northeast pipeline and send it on up to Canada where it can be used by Canadians and/or exported. Yes, exported. Export is not a dirty word, nor will it raise the prices here at home–at least not appreciably (by more than a few cents per Mcf). A new group of anti-drillers has sprung up to oppose the Spectra Energy project. They call themselves DOPE…oops, that’s NOPE (No Pipeline Expansion). NOPE is all up in arms because a little bit of natural gas may get exported, and they think they have the smoking gun to prove it…
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Industrywide Issues | Lease & Royalty Payments | Pipelines | Statewide WV | West Virginia

How Much $ Should Landowners Get for a Pipeline Right-of-Way?
June 2, 2015June 2, 2015

How much money should landowners get for the pipelines that cross their property? Should pipeline companies pay for the width of the right-of-way, in addition to the length? Should landowners be compensated more if it’s a bigger pipeline that has to be buried deeper? And, will landowners truly be able to use the land (farmers plowing and planting) if a pipeline is buried under it? These are all really important questions. In West Virginia, a former inspector for the state Dept. of Environmental Protection says landowners should be getting $50 per foot for a pipeline right-of-way. The industry, as represented by the West Virginia Oil and Natural Gas Association, thinks $5 per foot is more like an acceptable number. Excuse us for laughing, but $5 per foot for a pipeline that will be in the ground for the next 30-50 years (or more)? We wouldn’t sign it–and we hope WV landowners don’t either…
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Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Pipelines | Rex Energy

Rex Energy Hires Stonehenge to Build Gathering Pipeline in PA
June 1, 2015June 1, 2015

Rex Energy has contracted with Stonehenge Energy Resources to build a pipeline gathering system for Rex in Butler County, PA. Financial details of the deal were not disclosed, but the system–to be built this year–will provide an additional 400 million cubic feet per day of natural gas pipeline capacity, expandable in the future. The Stonehenge gathering system will deliver gas to MarkWest Energy’s Bluestone processing plant. The details…
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CNG/LNG | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

NYC Conf: Competing Visions to Relieve New England Gas Crunch
June 1, 2015June 1, 2015

SNL Financial reports on the Platts Northeast Power and Gas Markets Conference in New York City, held last week on May 28-29. Among those participating were companies offering vastly different solutions for the ongoing natural gas shortage in New England. On one side was GDF Suez Gas NA LLC (a French company) and Repsol Energy North America (a Spanish company), both hoping to import LNG to Massachusetts. Their pitch is that New England just needs enough natural gas to even out the peaks and valleys of supply–and of course GDF’s LNG terminal is the perfect solution (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). On the other side was Spectra Energy whose stated goal is to move 1/3 of Marcellus Shale gas produced into New England (see Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?). Here’s a summary/wrap-up…
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Industrywide Issues | New York | Pipelines | Schuyler County | Statewide NY

Will Companies Continue Making Grants after Pipelines are Built?
May 29, 2015May 29, 2015

We love pipelines. We love the companies that build them. Pipelines are the safest form of transportation period–bar none. The thing we don’t love is how pipeline companies are buying support for their projects. We’ve written about it before (see Constitution Pipeline Payments to Groups – Donations or Payola?; PennEast Payola? Buying Support One Community at a Time; and Kinder Morgan Hops on the Pipeline Payola Bandwagon in NEPA). Our objection is not to these midstream companies making community grants–much needed funds for very worthy purposes. Our objection is to the timing of the grants. Rather than make the grants before all of the permits are granted and the work has begun, wait and make the grants after the work has begun–to prove you want to be a good neighbor. An article from Schoharie County, NY about the Constitution Pipeline’s payola caught our eye and sparked a question for us: Will the Constitution still be making these community grants, to prove they’re good neighbors, long after the pipeline is built?…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force
May 28, 2015May 28, 2015

Pennsylvania Gov. Tom Wolf has proven, once again, the job he was elected to do is just too big for him. He’s not up to the task. Gov. Wolf has just 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. The Task Force is supposedly an “unprecedented collaboration of stakeholders” from government, drillers, midstreamers, and anti-drillers (euphemistically referred to as environmentalists). A “can’t we all just get along” committee. And this Task Force will “recommend a series of best practices” for where/when/how gathering pipelines will get laid in the Keystone State. John Quigley, acting secretary of the Department of Environmental Protection (DEP) and former staffer at the anti-drilling PennFuture, will serve as chairman of the Task Force. God help us all…
Read More “Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force”