Pipelines

Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | NiSource | Ohio | Pipelines | Processing Plants | Statewide OH

More Progress for Hickory Bend Pipeline/Processing Plant in OH
August 16, 2013August 16, 2013

The Pennant Midstream “Hickory Bend” pipeline continues to make good progress. Pennant is a joint venture between NiSource and Hilcorp Energy, established to build a $300 million wet gas pipeline and processing plant in eastern Ohio (see the original announcement from July 2012: NiSource, Hilcorp Energy Joint Venture in Utica Shale).

Although the project has faced its challenges and minor delays, it has made excellent and steady progress. The cryogenic processing plant in Springfield Township is now being reported as “completed” (the first time we’ve heard that), and pipeline boring crews are working this week in Columbiana County. An update:
Read More “More Progress for Hickory Bend Pipeline/Processing Plant in OH”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe
August 14, 2013August 14, 2013

According to a story in The Wall Street Journal, Antero Resources will spend half a billion dollars to construct an 80-mile pipeline in the Marcellus/Utica Shale region. But this rather expensive pipeline will not carry natural gas, gas liquids or even oil. Instead, it’s a pipeline that will deliver water from the Ohio River to some of Antero’s most active drilling locations scattered in West Virginia and Ohio–to be used for fracking.

For Antero with some 100K acres of leased land in the Marcellus, committing to half a billion dollars (the company grossed $265 million last year) is a huge roll of the dice…
Read More “Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe”
Energy Services | Industrywide Issues | Kinder Morgan | Pennsylvania | Pike County | Pipelines | Tennessee Gas Pipeline

TGP Spokesman Addresses Pike County Chamber – Protesters MIA
August 14, 2013August 14, 2013

In March of this year, anti-drilling malcontents tried to physically stop the expansion of the Tennessee Gas Pipeline (TGP). The TGP’s “Northeast Upgrade” is an extra 40 miles of pipeline in PA and NJ that will expand the pipeline’s capacity to handle additional Marcellus Shale gas. A judge told the malcontents to knock off their aggressive “protests” (illegal blocking of public roadways) or face jail time and stiff fines (see PA Judge Grants Injunction Against Protesters of TGP NE Pipeline).

At the time, the malcontents also plotted to disrupt a meeting of the Pike County, PA Chamber of Commerce where TGP was going to speak about the project, so the Chamber postponed the event. The rescheduled talk finally took place last week. Here’s a summary of what was said:
Read More “TGP Spokesman Addresses Pike County Chamber – Protesters MIA”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Open Season to Expand Transco Pipeline in PA Marcellus
August 13, 2013August 13, 2013

Williams has announced last Thursday an “open season” (a time to lock in contracts for natgas pipeline capacity) for their Transco pipeline in the Marcellus/Utica Shale region. If Williams gets enough interest, they’ll look to expand the Transco pipeline in PA and eventually move an additional 1 billion cubic feet of natural gas per day from the northeast to markets along the East Coast and the southeast.

The story from Reuters:
Read More “Open Season to Expand Transco Pipeline in PA Marcellus”
Accidents | Energy Services | Industrywide Issues | MarkWest Energy | Ohio | Pipelines | Statewide OH

OH EPA Dings MarkWest Over Slurry Spills in OH Swamps
August 12, 2013August 12, 2013

Once upon a time here in the good old U.S. of A. we used to call large areas of stagnant, smelly, mosquito-infested pools of water what they are: swamps. Then came the so-called environmentalist movement that renamed the word “swamp” to the pristine-sounding word “wetland.” Gotta love a good euphemism. We used to drain swamps. Now we make people get permits to walk across them, for fear of killing a mosquito (no doubt carrying West Nile Virus). Such is the enlightened age in which we live.

MarkWest Energy, arguably the largest midstream company (pipelines and processing plants) in the Marcellus and Utica Shale region, is having trouble in–or more properly under–some of Ohio’s swamps. In drilling under some Ohio “wetlands” to install pipelines, MarkWest has leaked a non-toxic clay-and-water slurry on a number of occasions. The Ohio Environmental Protection Agency (EPA) has told MarkWest recent spills are “unacceptable.” Ohio anti-drillers see it as an opportunity to shut down fracking (no pipelines, no way to get the gas and liquids to market). Fortunately, the Ohio EPA is a bit more level-headed than that, saying they prefer to work with companies like MarkWest to help them do better, not just shut them down…
Read More “OH EPA Dings MarkWest Over Slurry Spills in OH Swamps”
Industrywide Issues | Ohio | Pipelines | Statewide OH

Ohio’s Abandoned Railroad Lines Become Hot Commodity
August 9, 2013August 9, 2013

Yes, we’re suckers for a good railroad story–always have been, always will be. Especially railroad stories tied to shale drilling.

Here’s a railroad/drilling story with a twist: In Ohio, abandoned right-of-ways from railroads long gone are suddenly a hot commodity. Why? Midstream (pipeline and processing plant) companies are snapping them up to run pipelines along them…
Read More “Ohio’s Abandoned Railroad Lines Become Hot Commodity”
Economic Impact | EMG | Energy Services | Industrywide Issues | Kinder Morgan | MarkWest Energy | Ohio | Pipelines | Processing Plants | Statewide OH | Tuscarawas County

2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf
August 8, 2013August 8, 2013

Looks like the Williams/Boardwalk Bluegrass NGL pipeline is about to get some competition. Yesterday, Kinder Morgan, MarkWest and The Energy and Minerals Group (EMG) announced a new joint venture on two projects aimed at the Marcellus/Utica Shale region. The first project is a 400 Mmcf/d cryogenic processing plant in Tuscarawas County, OH to separate raw natural gas into methane and natural gas liquids (NGLs). The second project is a new NGL pipeline that will, like the Bluegrass, run from Ohio all the way to the Gulf Coast. There’s no mention of how much the partners will invest in the two projects, but we believe it could easily approach $1 billion of new investment in the northeast.

This announcement is great economic news for Ohio (Tuscarawas County in particular), and great economic news for Marcellus/Utica drillers who need extra takeaway capacity for the NGLs they’re currently producing. The press release from Kinder Morgan with details about the two new projects:
Read More “2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf”
Dominion Energy | Energy Companies | Energy Services | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale

Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market
August 8, 2013August 8, 2013

Straight off a conference call yesterday comes the news that Gulfport Energy has just signed a 10-year contract with Dominion Transmission to transport the natural gas Gulfport produces in the Ohio Utica Shale to the Midwest–using Dominion’s pipelines. The agreement is to ship 100 million cubic feet per day of gas (100 Mmcf/d), ramping up to 150 Mmcf/d by late 2014. Gulfport’s CEO James Palm made the announcement yesterday.

Palm also said on the conference call that Gulfport continues to lease acreage in Ohio and plans to drill “at least” 70 new wells next year in the Utica. More from yesterday’s call:
Read More “Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market”
Anti-Drilling/Fossil Fuel | Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Pipelines | Williams

Bluegrass NGL Pipeline Encounters Resistance from Some in KY
August 8, 2013August 8, 2013

The Bluegrass natural gas liquids (NGL) pipeline, announced in March 2013, will run from the Marcellus/Utica region southwest all the way to the Gulf Coast in Louisiana (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). The pipeline’s route will take it through Kentucky, where it will connect to Boardwalk’s Texas Gas Transmission, LLC system (Texas Gas) in Hardinsburg, KY. From Hardinsburg, the existing natgas Texas Gas pipeline will be converted to run NGLs. The entire project is slated to be up and running by late 2015.

However, some residents in KY are objecting to the pipeline. Do they have any valid points?…
Read More “Bluegrass NGL Pipeline Encounters Resistance from Some in KY”
Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Washington County

Washington County, PA Judge Continues Anti-Drilling Decisions
August 7, 2013

What if a county judge’s wife was an anti-drilling activist–so motivated by her fervor she knocks on area residents’ doors to ask for their signature on petitions to ban drilling. Do you think that might affect the objectivity of said judge? And what if that judge repeatedly rules against gas drillers in case after case? Do you think that might be evidence that said judge is not capable of setting aside his own bias? Yeah, we would think so too–and such is the case with Washington County, PA judge John DiSalle.

Earlier this year, Judge DiSalle blocked Range Resources from obtaining two permits to drill wells in Robinson Township (see Judge Refuses to Recuse Himself from Range v Robinson Twp Case). Judge DiSalle is back–this time on a different case. DiSalle is now refusing to allow Range and MarkWest Energy to build a compressor station in Cecil Township. See a trend here? Range and MarkWest are appealing DiSalle’s latest anti-drilling ruling to the PA Commonwealth Court…
Read More “Washington County, PA Judge Continues Anti-Drilling Decisions”
Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Statewide OH

Some OH Landowners Get “Take it or Leave it” Pipeline Offers
August 6, 2013August 6, 2013

Apparently, some heavy-handed tactics are being used by some (not all) landmen in Ohio who are telling property owners to “take it or leave it” when it comes to offers on the table to allow pipelines to cross their land. Landowners beware: a landman may tell you the company will run the pipeline anyway by using the power of eminent domain. Very few of the pipelines now being constructed in eastern Ohio right now have eminent domain power.

If you hear such a statement from a landman, ask to see a certificate from FERC or the Ohio Public Utilities Commission stating that particular pipeline has eminent domain authority. If they can’t produce such a certificate, you know they’re blowing smoke…
Read More “Some OH Landowners Get “Take it or Leave it” Pipeline Offers”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Research | Washington County

DEP Marcellus Air Study in SW PA Extended Extra Half Year
August 2, 2013August 2, 2013

In July 2012 MDN told you about a one-year study of air quality in and around Chartiers Township in Washington County, PA being conducted by the PA Dept. of Environmental Protection (see PA DEP Announces 1 Year Study on Air Quality in Marcellus). The aim of the study is to determine whether or not Marcellus drilling, pipelines and the MarkWest natural gas processing plant in the Chartiers area causes an unhealthy increase in various air pollutants for residents.

What has the research found? The DEP says testing so far shows “no levels of any pollutant that would violate federal ambient air quality standards.” However, they’ve decided to extend the study until the end of this year. The one-year study has turned into a one-and-a-half year study. The DEP now expects to file a final report in “Spring 2014″…
Read More “DEP Marcellus Air Study in SW PA Extended Extra Half Year”
Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC
August 2, 2013August 2, 2013

More than 1 1/2 years ago MDN told you about a planned new 70-mile pipeline and compressor station to connect Utica and Marcellus wells in eastern Ohio to Spectra Energy’s Texas Eastern pipeline system (see Chesapeake Investing in New 70-Mile Ohio Pipeline). Called the Ohio Pipeline Energy Network (OPEN), the project is a $500 million joint venture between Chesapeake Energy, American Electric Power and Spectra Energy. Not since December 2011 have we heard any news about the project–until now.

Even though there’s been no media coverage, Spectra has been hard at work planning and holding public meetings for feedback on eight different proposed pipeline routes. The Federal Energy Regulatory Commission (FERC) has given Spectra until Sept. 20 to tell them which alternative is their preferred route. FERC will then make a decision and (presumably) issue a permit that will allow Spectra to begin construction. An update on the OPEN project…
Read More “Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC”
Economic Impact | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Statewide WV | West Virginia

“Notable Increase” in WV/PA NatGas Production from New Pipelines
July 31, 2013July 31, 2013

The U.S. Energy Information Administration (EIA) published a brief article in their online “Today in Energy” publication that points out natural gas production for both dry gas and wet gas has gone up in West Virginia and southwestern Pennsylvania because of new infrastructure–pipelines and processing plants.

Here is the EIA article, complete with nifty chart showing the rather dramatic increase in daily production:
Read More ““Notable Increase” in WV/PA NatGas Production from New Pipelines”
Energy Companies | Energy Services | Ethane | Industrywide Issues | MarkWest Energy | NGLs | Pipelines | Processing Plants | Range Resources Corp | Sunoco Logistics

Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant
July 25, 2013July 25, 2013

Every now and again you come across a big, fat gold nugget of news in a press release. That happened for MDN today when we read yesterday’s press release from Range Resources, innocently announcing their second quarter 2013 results (see today’s story about Range). The gold nugget? Range reports that on July 21st their first deliveries of ethane via the Mariner West pipeline were made to Sarnia, Ontario, Canada. This is the first time ethane has made it to a processing (cracker) plant.

The little nugget of gold from Range, the only Marcellus driller (so far) to sell ethane…
Read More “Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant”
Accidents | Energy Services | Enterprise Products Partners | Industrywide Issues | Muskingum County | Ohio | Pipelines

Pipeline Construction Run-Off Hits Local Creek, Muskingum River
July 25, 2013July 25, 2013

A minor incident–but an incident nonetheless. As part of digging and drilling to lay pipeline for the ATEX Express ethane pipeline that will run from western PA through OH and all the way to the Gulf Coast, heavy rainwater has been washing through the dug up dirt and rock at one of the construction locations in eastern Ohio, running off into the Wakatomika Creek (Muskingum County), which in turn empties into the Muskingum River. The rainwater/mud mix is not toxic, but it does have the potential to affect fish and aquatic life along the creek and the river…
Read More “Pipeline Construction Run-Off Hits Local Creek, Muskingum River”