Pipelines

Energy Companies | Industrywide Issues | Pipelines | Rice Energy

Rice Midstream IPO Falls Short of Goal by Approx. $134M
December 24, 2014December 24, 2014

Earlier in December Rice Energy, a Marcellus and Utica Shale exploration and production company, launched an Initial Public Offering (IPO) for their midstream division–spinning it off into it’s own company (see Rice Energy Launches Midstream IPO – MDN Nails the Price). Rice had hoped to get between $19 and $21 per share. The IPO is now done and dusted–and Rice only got $16.50 per share. So instead of the hoped for $546-$604 million in new cash (call it $575 million), they got $441.6 million. Still very respectable, but certainly short of the mark…
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Industrywide Issues | Ohio | Pipelines | Supply Chain | Wayne County (OH)

OH Company Innovates Spray Foam Barriers to Lay Pipelines
December 24, 2014December 24, 2014

Ask anyone who’s ever worked on laying pipelines and you’ll find it can be back-breaking work. First you dig a trench, then you lay the pipeline. However, while digging the trench and laying the pipeline, you also need to install a barrier every 50 feet or so to stop water from running down the trench, leading to soil erosion. Most of the time sandbags are used. Stacking 30-50 pound sandbags around a pipe in a single location typically takes a couple of people an hour or more. However, Ohio entrepreneurs have come to the rescue. Dalton’s Spray Foam Solutions in Dalton, OH now offers a much faster and easier way, using spray foam. Spray it in, the foam hardens–clinging to the pipe and the soil–and in about 15 minutes (1/4 the time) a much easier solution is in place, protecting the environment, saving time, and reducing the need for Icy Hot Patches for the workers…
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Energy Services | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | Regulation | Snyder County | UGI Energy Services

UGI Pre-Files with FERC for New Marcellus Pipeline in Central PA
December 23, 2014December 23, 2014

Another new pipeline on the way from Pennsylvania utility company UGI. This one will run from Lycoming County in north-central PA to Snyder County in central PA and bring abundant, cheap, clean-burning Marcellus Shale gas from NEPA to a site where a company is converting a former coal-burning electric generating plant into a natural gas electric plant, near the Shamokin Dam in Snyder County. UGI has submitted a pre-filing request to the Federal Energy Regulatory Commission (FERC) for the 35-mile pipeline–a project that will cost $150 million to build. Starting next month UGI will conduct an open season to sign up more customers for cheap Marcellus Shale gas. Here’s the details…
Read More “UGI Pre-Files with FERC for New Marcellus Pipeline in Central PA”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Lancaster Congressional Staffer Calls Anti-Pipeliners – Big Mistake
December 23, 2014December 23, 2014

Some anti-drilling, anti-pipeline folks who live in Lancaster County, PA complained to their Congressman, U.S. Rep. Joe Pitts, about the proposed Williams pipeline project Atlantic Sunrise that will come through their area. Following the November election in which Pitts was re-elected, a Pitts staffer responded to several of them, calling them up to discuss the project and tell them why they ought to allow Williams to survey their property. NEVER talk common sense to an anti-driller. So the anti-drillers conscripted the local newspaper to turn the story around and make it seem like the Pitts staffer is engaged in illegal lobbying for Williams…
Read More “Lancaster Congressional Staffer Calls Anti-Pipeliners – Big Mistake”
Chester County | Columbia Pipeline Group | Energy Services | Industrywide Issues | Northampton County | Pennsylvania | Pike County | Pipelines | Regulation

FERC Approves Columbia East Side Project in SE PA
December 22, 2014December 22, 2014

In March 2013, Columbia Gas Transmission, a subsidiary of Nisource, applied to the Federal Energy Regulatory Commission (FERC) to add then-16 miles (now 19 miles) of new pipeline in southeastern PA and NJ to help fire a natural gas-fired electricity generating plant with cheap Marcellus Shale gas (see Columbia’s SE PA Pipeline Project Includes Compressor Upgrade). The project, called the East Side Expansion, faced some stiff opposition–especially with upgrades to a compressor station in Forks Township, Northampton County (see Columbia Hits Resistance to Compressor Upgrade in SE PA). Last Friday, Columbia announced FERC has approved the project and construction will now begin…
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Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

FERC Approves Williams Leidy Southeast Project in PA/NJ
December 22, 2014December 22, 2014

Since January 2013, Williams has been working on a project called Leidy Southeast that will create several new loops in northeast Pennsylvania and in New Jersey (including new compressor stations) to bump up the capacity of the Williams Transco interstate gas pipeline (see Williams Takes Next Step with Transco Leidy Pipeline Expansion). In August, the Federal Energy Regulatory Commission (FERC) said there would be no significant impacts to the environment, a good sign that the project would get the green light (see FERC Says “No Significant Impact” from Leidy Southeast Pipeline). The green light came last Thursday when FERC gave final approval for the project…
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Anti-Drilling/Fossil Fuel | Crime | Enbridge | Energy Services | Industrywide Issues | Pipelines

FDS? Michigan Man Tries to Stop Pipeline by Crawling Inside It
December 19, 2014December 19, 2014

Fracking Derangement Syndrome (FDS) is a dangerous disease. Most often it attacks those who grew up watching Captain Planet on Saturday mornings (one of the risk factors). FDS creates all sorts of weird behaviors in its victims. The disease recently struck again–this time infecting a 36 year-old Michigan man. The disease manifested by causing the man (the Green candidate for the U.S. Senate in Michigan) to crawl inside of a pipeline under construction by Enbridge and stay there for 10 hours, creating a danger to himself and those around him…
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Energy Services | EnLink Midstream | Industrywide Issues | NGLs | Ohio | Pipelines | Statewide OH

EnLink Launches 1 Month Open Season for ORV Condensate Pipeline
December 18, 2014December 18, 2014

In August, MDN told you about EnLink Midstream’s newly planned condensate pipeline. The Ohio River Valley (ORV) Pipeline, as it’s called, will connect to EnLink’s existing 200-mile pipeline in eastern Ohio and West Virginia, providing drillers in the region access to markets through EnLink’s Bells Run barge facility and Black Run rail terminal (see EnLink Midstream Announces New Condensate Pipeline in ORV). The OVR Pipeline, expected to be completed in the second half of 2015, will have an initial capacity of approximately 50,000 barrels per day (bpd). Yesterday EnLink announced a binding open season for the pipeline–the time when drillers and other customers can sign up to reserve capacity on the new pipeline…
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Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | Statewide WV | West Virginia

Dominion Fined $55K for Run-off in WV Creeks
December 17, 2014December 17, 2014

Dominion Transmission has agreed to pay $55,470 in fines for violating the West Virginia Water Pollution Control Act. The fines are the result of WV Dept. of Environmental Protection (DEP) investigations that started in November of 2012. The DEP investigated “slips” or slopes restored after Dominion dug trenches to lay pipeline. The slopes were not restored properly and sediment and erosion ended up in area creeks. Dominion is required to fix the creeks and pay the fine…
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Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Taxation

PA Senators to Re-Introduce Impact Fee Bill for Pipelines
December 17, 2014December 17, 2014

Two Philadelphia-area state senators, John Rafferty (Republican from Collegeville), and Andrew Dinniman (Democcrat from West Chester), will introduce legislation in January that would extend the Act 13 impact fee to include newly built gathering and transmission pipelines in the state. The new fee/tax would be based on the amount of acreage used by the pipeline, which includes the entire right-of-way on either side of the pipeline. According to the senators, most of the revenue generated would stay with the local counties and towns where the pipeline is located, in keeping with the intent of an impact fee. The industry is pushing back, saying pipelines have a minimal impact…
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Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Summit Midstream | Utica Shale | XTO

XTO Gets Serious in OH Utica, Hires Summit for Gathering System
December 16, 2014December 16, 2014

XTO Energy, wholly-owned subsidiary of ExxonMobil, has an active drilling program in the Marcellus and Utica Shale region. But when was the last time you heard anything about new wells or activity by XTO? The company largely stays off the radar. According to MDN’s Marcellus and Utica Shale Databook, the company gets somewhere between 20-25 new permits every four months to drill in the PA Marcellus. So far this year, XTO has received 11 and 17 permits (Jan-Apr and May-Aug respectively) for new wells in the Ohio Utica Shale, which is the first appreciable drilling done by the company in the Utica. With Utica drilling under way, it must be time to build pipelines to connect the wells–and right on cue, we have an announcement from Summit Midstream Partners that they’ve signed a contract with XTO to build a gathering pipeline network…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing
December 15, 2014December 15, 2014

Energy Transfer Partners plans to build an 800-mile, $4.4 billion pipeline that will connect the Marcellus and Utica Shale region to Canada (see ET Rover Pipeline Fully Subscribed, Project Scope Revised Up). The pipeline will connect Pennsylvania, West Virginia and Ohio and cross the Buckeye State going northwest before entering Michigan and eventually taking a dog-leg into Ontario (see the map embedded below). These kinds of projects take multiple years to complete–with many steps. On Friday, ET filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC). It’s one of the first steps on an 800-mile journey…
Read More “ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Madison County | New York | Pipelines

The 2 Types of Opponents to a NY Compressor Plant
December 12, 2014December 12, 2014

In June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to, among other things, build two new compressor stations in upstate New York: one in Chemung County, the other in Madison County–both along an existing pipeline. It’s part of Dominion’s New Market project (see Dominion’s NY Compressor Plants to Move More Marcellus Gas). Some residents in Madison County are opposed to the new 10,880 horsepower compressor that would be built near some homes. More than 150 residents spoke out against it at hearings held by FERC this year (public comments closed on Dec. 5). What struck us, in a recent story about opposition to the plant, is the dichotomy that exists among those who oppose it…
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CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

More Marcellus Gas Going to Cheniere LNG Export Facility in TX?
December 12, 2014December 12, 2014

Earlier this week Kinder Morgan signed a new 15-year agreement with Cheniere to supply Cheniere’s Sabin Pass LNG export facility near Corpus Christi, Texas. One of the pipelines that will deliver the gas is Kinder’s Tennesses Gas Pipeline. Although the press release doesn’t say so, we believe at least some of the gas that Kinder will provide to Cheniere via the TGP will be Marcellus Shale gas…
Read More “More Marcellus Gas Going to Cheniere LNG Export Facility in TX?”
Energy Companies | Energy Services | Industrywide Issues | M&A | New York | Pennsylvania | Pipelines | Regency Energy Partners | Statewide NY | Statewide PA | Talisman Energy

Talisman Considers Sale of Marcellus Midstream Assets to Regency
December 10, 2014December 10, 2014

Three weeks ago Talisman was rumored to be near a deal to sell its New York/Pennsylvania pipeline system to Regency Energy Partners. Talisman owns some 435 miles of gathering and transmission pipelines in NY/PA. However, the deal, which was supposedly imminent and rumored to be worth $1 billion, still hasn’t happened. Why? Could it be the revived talks by Repsol to buy Talisman (see Rumor Mill: Repsol Once Again Interested in Buying Talisman)? We don’t know. One thing we do know is that corporate raider Carl Icahn, who has his claws deeply into Talisman (as he does with Chesapeake Energy), is the puppet master pulling the strings and forcing the company to sell assets. Here’s the sitrep (situation report) as of a few weeks ago, according to sources talking to Bloomberg News…
Read More “Talisman Considers Sale of Marcellus Midstream Assets to Regency”
Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Regulation | Washington County

MarkWest Builds/Operates Compressor Station w/o Building Permit
December 10, 2014December 10, 2014

Hmmm. Here’s a story we don’t like to report, and fear there’s more to the story than we now know, but report it we must. MarkWest Energy, arguably the largest and most important midstream (pipelines & processing plants) company in the Marcellus and Utica Shale, was denied a building permit to construct a building to house several natural gas compressors in West Alexander (Donegal Township, Washington County), PA–but they went ahead and built it anyway, without the permit. The rogue compressor station is now up and running but has to use generators to supply power because the town won’t let them hook up electric since they’re still in violation of the building permit…
Read More “MarkWest Builds/Operates Compressor Station w/o Building Permit”