Pipelines 339 - Marcellus Drilling News

U.S. Will Export Marcellus Natural Gas to Canada by 2020

September 14, 2011September 14, 2011

The TransCanada Canadian Mainline is an 8,762 mile natural gas pipeline that spans Canada from the Alberta/Saskatchewan border east to the Québec/Vermont border, along the way connecting with other natural gas pipelines in Canada and the U.S. With respect to the U.S., the gas today flows one way: from Canada to the U.S. But NGI Shale Daily reports that by 2020, the gas will be flowing the other way.

Laser Pipeline Withdraws Request to Become PA Public Utility

September 13, 2011September 13, 2011

In a split 3-2 decision in May of this year, the Pennsylvania Public Utility Commission (PUC) voted to confer public utility status on Laser Northeast Gathering, a 30-mile, $55 million pipeline that stretches from Susquehanna County, PA to Broome County, NY (see MDN story here). When complete, the pipeline will connect wells in Susquehanna County with the Millennium Pipeline in Broome County. The Millennium is an interstate pipeline that transports gas from Steuben County in western NY to Rockland County, near New York City, hooking in with several other large interstate pipelines along the way. Laser sought public utility status so it would have the power of eminent domain—the power to run the pipeline under property even if landowners object. At the time, MDN objected.

Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

New Marcellus Pipeline Regulations Coming to PA This Fall

September 9, 2011September 9, 2011

New regulations for the many gathering pipelines in Pennsylvania’s Marcellus Shale drilling regions will be a top priority this fall according to Republican legislators. It’s not clear under existing PA law which government agency has jurisdiction and responsibility for inspecting intrastate pipelines—and that “who’s on first” problem has led to safety lapses, including explosions.

Energy Services | Industrywide Issues | Pipelines | Tennessee Gas Pipeline

NJ Residents Unhappy with Pipeline’s Power of Eminent Domain

August 18, 2011August 18, 2011

This is a cautionary story. You know that MDN is pro- but safe drilling. You may also know that MDN does not think, in general, that pipeline companies should be granted status as public utilities with the right of eminent domain—the right to condemn and take land for its own use in constructing a pipeline. But pipelines are a complex issue. Should large, interstate pipelines be granted public utility status? Perhaps. They are similar to large electric lines running through a state. But what about smaller, gathering pipelines? Should they have the right to cross any property they want? MDN says no.

Economic Impact | Industrywide Issues | Pipelines

New Marcellus Pipeline Construction Pumping $2B into Economy

August 17, 2011August 17, 2011

New pipeline construction for Marcellus Shale gas is set to have a major economic impact on the Marcellus region—to the tune of $2 billion. The new capacity in Marcellus pipelines will more than double the existing capacity in place now:

Industrywide Issues | Jobs | Pennsylvania | Pipelines | Statewide PA

New Interstate Pipelines Mean Thousands of Jobs in PA

August 15, 2011August 15, 2011

Hundreds of miles of new interstate gas pipelines are on the way in Pennsylvania, and new pipeline construction is providing thousands of jobs in the state. The volume of Marcellus gas flowing from the Marcellus is projected to rise from a current 3 billion cubic feet (bcf) per day to 7 or 8 bcf per day in the next five years, which means more large interstate pipelines are required to get the gas to market.

Williams’ Pipeline Project in Northeast PA Hits Opposition

August 15, 2011August 15, 2011

Williams is attempting to complete a pipeline that will at one end join to the Transco interstate gas pipeline in Dallas Township, PA, and at the other end join to the Tennesee Gas Pipeline near Springville (in Susquehanna County), PA. But local opposition from Dallas Township residents to the pipeline means Williams’ target completion date of October may be delayed.

Three Mud Spills in PA Creek from Laser Pipeline Construction

August 10, 2011August 10, 2011

Laser Northeast Gathering recently broke ground is quickly working to complete a new 30-mile shale gas pipeline, called the Susquehanna Gathering System, that spans much of Susquehanna County in northeastern Pennsylvania and crosses the southeast corner of Broome County in New York State where the pipeline will connect to the larger Millennium interstate pipeline (see this MDN story).

But Laser is having troubles with drilling underneath Laurel Lake Creek, a waterway considered to have “exceptional value” by the PA Department of Environmental Protection. In the span of just a few weeks, drilling under the creek resulted in three separate incidents of non-toxic drilling mud being spilled into the creek, the latest incident occurring on Monday.

New Pipeline Permit Rules Delay Landowner Royalties in PA

August 9, 2011August 9, 2011

A new set of rules governing pipeline construction permits issued by the U.S. Army Corps or Engineers is causing extreme delays in getting gas from wells to market according to Chesapeake Energy. The new rules have turned what was an average 45-day process to file paperwork into a 300-day process.

The bottom line is that wells that are drilled and completed sit idle because gathering pipelines aren’t being built to them, and consequently landowners are not receiving royalty checks.

Chesapeake Energy | Energy Companies | Industrywide Issues | Pipelines

How Much Should Landowners be Paid for Marcellus Pipelines on Their Property?

July 28, 2011July 28, 2011

With an increase in the number of Marcellus gas wells drilled, comes an increase in the need for pipelines to get that gas to market. Local pipelines that gather the gas and take it to a compressor station where it’s then sent to a larger pipeline, and pipelines that bring water to drilling sites, can be from as small as 4 inches in diameter to as large as 36 inches in diameter. In Marcellus Shale states like West Virginia and Ohio, the mineral rights to drill for gas beneath the ground are often owned by someone different than the landowner who owns the surface rights. A pipeline contract is known as a right-of-way easement with the surface owner.

Since surface owners will not see any royalties from the gas, they understandably want to get as high a price as they can for allowing pipelines to traverse their property, pipelines that once installed, will be there for many years—often longer than the producing gas well. But what’s a fair price?

PA Utility Commission Reconsiders Decision to Grant Public Utility Status to Pipeline Company

July 18, 2011July 18, 2011

The Pennsylvania Utility Commission (PUC) is reconsidering its decision to grant pipeline company Laser Northeast Gathering status as a public utility with the power of eminent domain (see MDN’s previous coverage of that decision here).

EPA Opposes MARC 1 Shale Gas Pipeline in Northeastern PA

July 15, 2011July 15, 2011

The federal Environmental Protection Agency (EPA) is throwing its considerable weight against building a new shale gas pipeline that would cross three counties in northeastern Pennsylvania.

New Shale Gas Pipeline Breaks Ground in Broome County, NY

July 14, 2011July 14, 2011

The new Susquehanna Gathering System natural gas pipeline broke ground on Wednesday in Broome County, NY. The first phase of the pipeline is expected to be done in the next few months and will bring shale gas from northeastern PA to the Millennium Pipeline that cuts across New York State. From the official Laser Northeast press release:

Marcellus Shale Gas May Soon be Exported – To California

July 7, 2011July 7, 2011

In an astonishing reversal, the operator of a natural gas pipeline that spans the United States is proposing to change the direction the gas flows through the pipeline in order to sell shale gas from the Eastern U.S., particularly the Marcellus, to the Midwest and Western U.S.

Michigan Energy Company to Build $250 Million Pipeline Spanning Northeast PA & Southern Tier of NY

July 6, 2011July 6, 2011

Michigan-based DTE Energy yesterday announced they will spend $250 million to build a new 37 mile long shale gas pipeline in Northeast PA and the Southern Tier of NY. Construction is expected to be complete by the middle of 2012.

Industrywide Issues | Pipelines

Shale Gas Pipeline Costs Have Tripled in Past Seven Years, Marcellus Pipelines Cost the Most

July 1, 2011July 1, 2011

Shale gas pipelines have skyrocketed in price in recent years, according to a new report by Ziff Energy.