Pipelines

Energy Companies | Industrywide Issues | New York | Pipelines | Regulation | Seneca Resources | Steuben County

17-Mile Gas Pipeline in Steuben County, NY Makes Progress
March 28, 2014March 28, 2014

Empire Pipeline, a subsidiary of National Fuel Gas Company (which also owns driller Seneca Resources) is asking the Federal Energy Regulatory Commission (FERC) for approval on a new 17-mile pipeline in Steuben County, NY. The project is called the Tuscorara Lateral Project and will cost a projected $43 million. The pipeline will connect a gas storage field and compressor station in Tuscarora, NY (also owned by National Fuel Gas) with the existing Empire Pipeline network–a network that stretches from Buffalo to Syracuse and down to Corning. This “little” piece of pipeline will open up much needed extra volumes of natural gas for Upstate New Yorkers.

Empire/National Fuel is now negotiating with landowners to run the pipe under their property. They hope to begin building later this year and have the pipeline in service in November 2015. Below is a story about the project, the reason for it, the jobs it will create, and finally a copy of a presentation given last year at a special open house with full details…
Read More “17-Mile Gas Pipeline in Steuben County, NY Makes Progress”
Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Regulation | Statewide NY | Susquehanna County | Williams

EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline
March 27, 2014March 27, 2014

NGI’s Shale Daily is reporting both the federal Environmental Protection Agency (EPA) and the Dept. of Interior (DOI) have filed requests with the Federal Energy Regulatory Commission (FERC) to extend the comment period on the proposed 124-mile Constitution Pipeline. The Constitution will run from the prolific gas fields of Susquehanna County, PA across the border and up into Schoharie County, NY where it will interconnect with two major interstate pipelines–carrying Marcellus Shale natural gas produced by Cabot Oil & Gas and other drillers (see New Marcellus Constitution Pipeline Announces “Final” Route). Along the way a local utility company will tap into the Constitution to deliver natural gas to rural locations (see Leatherstocking to Tap Constitution Pipeline for Local Deliveries).

However, the Constitution will need to make a few changes, according to FERC (see FERC: Constitution Pipeline Should Make Changes to Lessen Impacts). But nothing too major. That is, unless the EPA and DOI jump in with new demands. Their delay is unwelcome and potentially troubling–although we’re not ready to hit the panic button just yet. Here’s what Shale Daily says about the request from EPA & DOI:
Read More “EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline”
Accidents | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Sunoco Logistics

Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve
March 27, 2014March 27, 2014

Last Tuesday Sunoco Logistics discovered a 5-inch crack leaking crude oil from their Mid-Valley Pipeline–and the oil was leaking into the Oak Glen Nature Preserve just west of Cincinnati, OH. Ouch. Initial reports were that 10,000 gallons of oil had leaked before the pipeline between Hebron, KY and Lima, OH was shut off. That estimate has been doubled–it’s now thought more than 20,000 gallons of oil leaked. Double ouch.

What does this have to do with Marcellus/Utica shale drilling? Not much. It’s possible some of the oil comes from Ohio–more likely from other locations (we don’t know). Sunoco Logistics is the company that has built (and is building) the Mariner West and Mariner East ethane/NGL pipelines–but it’s a stretch to compare those gas pipelines with the Mid-Valley oil pipeline. The connection between the oil spill and northeast shale drilling is this: MDN editor Jim Willis first learned about the leak at the Oil & Gas Awards’ “Conference for Excellence” last week in Pittsburgh. Jim was sitting next to an official from McCutcheon Enterprises–one of the companies called in to clean up the mess–who told Jim about the spill and his company’s rapid response to work on getting it cleaned up…
Read More “Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | Pipelines | Regulation | Williams

Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY
March 26, 2014March 26, 2014

On Monday MDN brought you the news that the Kentucky House had voted to strip the right to use eminent domain from natural gas liquids pipelines (see Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline). An alert MDN reader predicted the measure wouldn’t get signed into law because the KY Senate president said with only 10 days left in this session, it’s not likely to come up for a vote in the Senate (see Bluegrass Pipeline bill passes House).

Looks like it won’t matter what the KY legislature does. Last December a lawsuit was filed by a group calling itself KURE (Kentuckians United to Restrain Eminent Domain), to prevent the Bluegrass Pipeline from using eminent domain in the Bluegrass state (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court). Yesterday Franklin Circuit Judge Phillip J. Shepherd ruled in KURE’s favor and said the Bluegrass cannot use eminent domain to force landowners to allow the pipeline to be buried under their property…
Read More “Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Regulation | Williams

Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline
March 24, 2014March 24, 2014

The Bluegrass natural gas liquids (NGL) pipeline is a $1.5 billion project that will stretch from the Utica/Marcellus all the way to Gulf Coast. It’s being built by Williams and Boardwalk Pipeline Partners and as of last October the joint venture partners held an open season and said everything is on track for a 2015 launch (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). But a lot has happened in the past six months, including Boardwalk’s stock tanking (see Serious Concerns about Boardwalk Pipeline Partners Continue). Not only that, but there’s been a lot of anti-pipeline sentiment in Kentucky–one of the states the new pipeline must cross on its way to the Gulf Coast. So much anti-pipeline sentiment that Boardwalk and Williams have threatened using eminent domain in order to get the property they need for a crossing (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court).

The eminent domain issue is coming to a head in Kentucky with respect to the Bluegrass Pipeline. Last Friday the KY House voted to approve House Bill (HB) 31 which will strip NGL pipelines of their right to use eminent domain in the state. The measure now heads to the Senate. What are its chances? No one is saying, although Boardwalk and Williams have hired no less than nine lobbyists to make their case with KY lawmakers…
Read More “Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County | Wastewater | Williams

Williams Pipeline Connection in NEPA Leaks Brine Near Local Lake
March 20, 2014March 20, 2014

A Williams pipeline in Susquehanna County, PA used to carry brine (salty water from the depths that comes out long after fracking is done and over) was found leaking earlier this week. A pipeline interchange leaked an unspecified amount of brine and left what appeared to be a copper-colored dust over land owned by the Loomis Lake Association.

The Lake Association is understandably concerned that some of the brine may have leaked into the lake itself. Daily testing is underway to determine if the brine reached the lake. Williams has cleaned up the leftover dust–and the PA Dept. of Environmental Protection is investigating. No one is panicking, but everyone is on high alert and keeping a close eye on the situation…
Read More “Williams Pipeline Connection in NEPA Leaks Brine Near Local Lake”
Economic Impact | Industrywide Issues | Jobs | Pipelines | Research

New Research: US/Canada Need $30B/Year on Midstream Investment
March 19, 2014March 19, 2014

In September 2013 MDN published Vol. 2 of the 2013 Marcellus and Utica Shale Databook series. In that volume we included a comprehensive list of 111 announced infrastructure (pipeline related) projects for the northeast. When we tallied it all up, the numbers were that projects in our neck of the woods will result in about $40 billion being spent over the next five years or so (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). The INGAA Foundation (Interstate Natural Gas Association of America) and ANGA (America’s Natural Gas Alliance) yesterday released a study they commissioned that tops our estimates–by a lot. The study is titled, “North America Midstream Infrastructure through 2035: Capitalizing on Our Energy Abundance” (full copy embedded below). Researched and prepared by ICF International, the new study shows that the U.S. and Canada together will need to spend $30 billion per year from now until 2035 on pipelines and related infrastructure just to keep pace with shale development.

ICF’s numbers add up to $641 billion in 2012 dollars over 22 years. But get this: $70 billion of that $641 will be spent in the Marcellus, according to the study. Nationwide the new spending will generate more than 432,000 jobs, add approximately $885 billion to U.S. and Canadian economies, and bring in over $300 billion in federal, state/provincial and local taxes. Truly staggering numbers. Immediately below we have the quick hit, bulleted conclusions of the report, for the time-pressed, so you can scan it. Below that the press release announcing the new study–and finally, a full copy of the study with some great charts and graphs (be sure to check out their Henry Hub price forecast through 2035 on page 24)…
Read More “New Research: US/Canada Need $30B/Year on Midstream Investment”
Broome County | Chenango County | Coterra Energy (Cabot O&G) | Delaware County | Energy Companies | Energy Services | Industrywide Issues | New York | Otsego County | Pennsylvania | Pipelines | Schoharie County | Susquehanna County | Williams

Leatherstocking to Tap Constitution Pipeline for Local Deliveries
March 19, 2014March 19, 2014

Rural residents (and an aerospace manufacturer) located in New York’s Southern Tier and Central New York areas have a lot to be thankful for with the upcoming Constitution Pipeline–a natural gas pipeline that will deliver natural gas from the Marcellus Shale gas fields of Susquehanna County, PA all the way to two major interstate pipelines near Schoharie, NY (see New Marcellus Constitution Pipeline Announces “Final” Route). Williams is building the 124-mile pipeline with backing from Cabot Oil & Gas, whose gas will flow through it.

However, a regional gas pipeline company (think gas utility) founded just a few years, Leatherstocking Gas, will tap into the Constitution at (so far) four different locations along the pipeline so they can deliver that homegrown Marcellus gas to rural customers who are not being served by the big utilities like New York State Electric & Gas (NYSEG, owned by Iberdrola). Yesterday Williams and Leatherstocking announced the deal to tap into the Constitution Pipeline in four locations…
Read More “Leatherstocking to Tap Constitution Pipeline for Local Deliveries”
Industrywide Issues | Pipelines | Supply Chain

Marcellus Midstreamers Turn to Calif. Company for Compressor Power
March 19, 2014March 19, 2014

Even companies as far away as California are successfully selling their manufactured products to the Marcellus and Utica Shale industry–albeit the products they manufacture are pretty specialized. Capstone Turbine Corporation of Chatsworth, CA issued a press release yesterday to announce three midstream operators in the Marcellus/Utica have placed orders with the company for power plants that will power multiple compressor stations and pipeline interconnections. Captstone doesn’t name the customers, but we can certainly guess who they may be (although we won’t).

To be honest, this is pretty obscure (i.e. uninteresting) stuff for most. Our point? Big supply chain bucks (millions) have just been spent–and it’s money that could potentially be spent with manufacturers closer to home, if those manufacturers exist, and if they get plugged into the northeast shale supply chain. So pay attention companies that manufacture power plants! Here’s the Capstone press release with a few more details…
Read More “Marcellus Midstreamers Turn to Calif. Company for Compressor Power”
Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

TransCanada’s ANR Pipeline to Reverse & Carry Marcellus Gas South
March 14, 2014March 14, 2014

This week TransCanada’s ANR Pipeline announced an open season to gauge interest on carrying plain old natural gas from the Marcellus and Utica Shale region all the way to the Gulf Coast. The plan is to reverse the flow of the ANR Pipeline that stretches from Indiana to the Gulf, and get the gas to Indiana by using the ANR Lebanon Lateral, a pipeline that goes from Lenanon, OH to the mainline ANR in Indiana. TransCanada is offering up to 600,000 dekatherms per day (Dth/d).

Here’s the story from NGI’s excellent Shale Daily publication:
Read More “TransCanada’s ANR Pipeline to Reverse & Carry Marcellus Gas South”
Accidents | Columbia Pipeline Group | Energy Services | Industrywide Issues | Kanawha County | NiSource | Pipelines | West Virginia

NTSB Faults NiSource/Columbia for WV Pipeline Explosion in 2012
March 12, 2014March 12, 2014

On December 11, 2012, a portion of the Columbia Gas Transmission pipeline (owned by Nisource) exploded near Sissonville, WV, 10 miles north of Charleston. The resulting fire burned for more than an hour and shut down a portion of nearby Interstate 77 for days (see Columbia NatGas Pipeline Explodes Near Charleston, WV). It’s been a long time coming, but on Monday the National Transportation Safety Board (NTSB), that did a full investigation of the explosion, turned in their final report. It was pretty damning for NiSource/Columbia. The conclusions of the investigators are that a) the pipe had corroded in that section–a long time ago, and b) Columbia hadn’t inspected that section of pipeline since (unbelievably) 1988. In other words, it was an accident waiting to happen.

Below we have the press release from the NTSB with their high level findings, then the full 32-page report released Monday, and finally, the lame response issued by NiSource/Columbia “thanking” the NTSB for just ripping them a new one…
Read More “NTSB Faults NiSource/Columbia for WV Pipeline Explosion in 2012”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Anti-Drillers Turn Out to Oppose TGP Pipeline Expansion Across MA
March 7, 2014March 7, 2014

As you may recall, a few weeks ago MDN was a bit dumbfounded that residents of Massachusetts were being so reasonable about the prospect of Kinder Morgan expanding the Tennessee Gas Pipeline across the state to deliver critically needed new supplies of natural gas to New England (see Reaction to TGP’s Planned Pipeline Across Massachusetts). It’s Massachusetts for heaven’s sake! Home of some of the looniest of the loons, lefties of the left. And here they were, being all reasonable. The stars were out of alignment.

It took a little time, but true to expectations, here come the MA nutters out of the woodwork to oppose the pipeline. They’re spitting and sputtering and mouthily proclaiming Kinder Morgan has “no idea who they’re dealing with.” Now THAT’S more like the wacky MA residents we know and love. The stars are now realigned in the eco-nut firmament…
Read More “Anti-Drillers Turn Out to Oppose TGP Pipeline Expansion Across MA”
Industrywide Issues | Pipelines | Regulation

Industry Supports Bill Forcing FERC to Approve Pipelines <1 Year
March 6, 2014March 6, 2014

Apparently a year is not long enough for employees at the Federal Energy Regulatory Commission (FERC) to approve new pipeline applications. FERC is the agency charged with approving new interstate natural gas (and other types of) pipelines. It’s a long, arduous, and complex process to approve and build a new pipeline. You might think if an agency had 100% completed paperwork before them it wouldn’t take an entire year to evaluate and approve it–but indeed, it often takes longer. Much longer. Years, in fact.

Enter Congressman Mike Pompeo, Republican from Kansas. Last year he introduced H.R. 1900 which would bring some “discipline” to the process by making FERC approve or deny newly proposed pipeline projects within a year of receiving all necessary paperwork. Jeff Wright, director of FERC’s Office of Energy Projects, promptly threatened lawmakers, telling them if FERC is backed into a corner, the agency will simply start denying projects left and right (see FERC Warning to Lawmakers: Back Us in a Corner, You’ll be Sorry). We hadn’t heard anything further on H.R. 1900 since Wright’s threat, until we spotted this…
Read More “Industry Supports Bill Forcing FERC to Approve Pipelines <1 Year”
Access Midstream Partners | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants
March 5, 2014March 5, 2014

Chesapeake Energy continues to sell off bits and pieces of the company, making corporate raider (and the company’s second largest investor) Carl Icahn happy. The latest ballast to go over the side are 103 “compression units” in the Marcellus/Utica region, purchased by Access Midstream (which used to be Chesapeake Midstream before it was tossed over the side too), and 334 “compression units” scattered throughout the south, southwest and west, sold to Exterran Partners. Total proceeds for Carl Icahn, er Chesapeake? $520 million.

Here’s the announcement from Chesapeake, followed by the announcement from Access Midstream about their “bolt-on” acquisition…
Read More “Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

Williams Happy with FERC Progress on NE Pipeline Expansions
March 4, 2014March 4, 2014

Yesterday Williams issued a press release touting last Friday’s Federal Energy Regulatory Commission (FERC) issuance of a final environmental review for the Transco Pipeline’s Rockaway Lateral and Northeast Connector expansions. The final review is prelude to a final decision by FERC to green light the projects, something Williams (the owner of Transco) clearly believes will happen. The final FERC decision will be issued this spring. When it is, and when Williams builds those expansions, it means more gas will flow to New York City by next winter–in time for the winter heating season.

The irony is, of course, that none of the gas flowing through the Transco to NY will be from New York State itself but instead will come mostly from the Marcellus Shale in Pennsylvania. Keep an eye out for the loonies who are bound to come out of the woodwork to oppose the expansion. Perhaps we’ll see more nutjobs like those that opposed the now-functioning Spectra Energy pipeline to Manhattan (see NYC Pipeline Protesters Get Naked, Paint Themselves Green). Here is yesterday’s “attaboy FERC” announcement from Williams:
Read More “Williams Happy with FERC Progress on NE Pipeline Expansions”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Public Opinion | Regulation | Statewide NY | Statewide PA | Williams

Constitution Pipeline Payments to Groups – Donations or Payola?
March 3, 2014March 3, 2014

What do you call it when a company pays money to local organizations and agencies before the project has been fully approved by federal, state and local agencies? These payments, mind you, are not fees for permits or licenses, but voluntary chunks of money offered to groups that may be affected by the project if it’s built–in this case a pipeline. Is it called, Good corporate citizenship? Being a responsible member of the local community? Or perhaps, payola?

Regardless of what you call it, the Constitution Pipeline, a desperately needed natural gas pipeline that will run from the gas fields of Susquehanna County, PA to central New York where it will connect to two major interstate pipelines, has now paid out more than $1 million in “community grants” to help build support for the pipeline. Is that a good thing, or bad? We think it’s time to have that discussion…
Read More “Constitution Pipeline Payments to Groups – Donations or Payola?”