Texas Gas Gives Up on Portion of M-U to Gulf Coast Pipe Project

It’s been three years since we’ve written about Texas Gas Transmission’s (TGT) Northern Access Supply Project. TGT is a big pipeline network owned and operated by Boardwalk Pipeline Partners. Originally built from the Louisiana Gulf Coast to the upper Midwest, the purpose of the pipeline system was to supply Illinois, Indiana, and Ohio with natural gas. Then the Marcellus/Utica Shale happened and TGT needed to change strategies.
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In May 2016, a landowner in Wayne County, PA filed a lawsuit against the Delaware River Basin Commission (DRBC) asking a judge to declare that the DRBC does not have jurisdiction to prevent the construction of a natural gas well (see
It becomes more obvious every day that the rank and file (even the leaders) of trade unions are breaking with their Democrat Party bosses over issues like insane taxes on natural gas. The divide is particularly acute in blue states like Pennsylvania, which voted for Donald Trump in 2016 and likely will again in 2020 because the Dems keep shooting themselves in the head with stupid taxes and regulations that kill jobs. The PA AFL-CIO issued a statement yesterday thanking the PA Air Quality Technical Advisory Committee, part of the Dept. of Environmental Protection, for listening to the union’s concerns about Gov. Wolf’s proposed carbon tax at a recent hearing.
Here’s an interesting aspect of the natural gas business you may not have heard about before (we hadn’t). As you may know, not all gas produced gets used immediately. Some gas gets stored, typically in underground caverns, and later extracted for use when needed. Buyers (like utility companies) contract with storage fields to park the gas they’ve purchased until they need it. What you may not know is that not 100% of the molecules that go in come back out again.
This is getting ridiculous. Does anyone really believe that a single pipeline project already built and now getting a redo could possibly have racked up 680 “violations” during construction work over the past five months? We certainly don’t believe it. Yet that’s what the Pennsylvania Dept. of Environmental Protection (DEP) alleges. Energy Transfer (ET), the builder and fixer of Revolution, has their own allegation: The DEP itself is “not in compliance with its own guidelines.” Who inspects the inspectors for compliance?
Rahm Emanuel (Democrat), former Mayor of Chicago and former Chief of Staff in the Bill Clinton White House, once famously quipped, “You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.” Emanuel’s fellow Democrats who control 10 states plus the District of Columbia are taking his advice. The AGs from each of those states sent a letter to the Federal Energy Regulatory Commission (FERC) yesterday asking FERC to delay approving any new pipeline projects until the virus pandemic is over.
Two weeks ago MDN told you about Virginia Natural Gas (VNG) and their request for state permission to build 24 miles of new pipeline and two new compressor stations (expanding a third compressor), connecting to the mighty Transco pipeline system to flow Marcellus/Utica gas to the northeast Va. region (see
The Trump Administration listens. And acts. Two weeks ago Marcellus/Utica drillers and members of Congress from western Pennsylvania lobbied the Trump Administration for changes to the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) to allow M-U drillers to participate (see 
If an upstream (drilling) company with a long-term pipeline contract files for bankruptcy, does that give the company the right to break their pipeline contract? A major shipper on the Rockies Express (REX) pipeline, Ultra Resources, is expected to file for bankruptcy very soon. REX is concerned Ultra may claim its bankruptcy is a “get-out-of-the-contract free” card. REX has asked FERC to preemptively “assert its jurisdiction” as the arbiter of whether or not companies like Ultra can skip out of contracts.

Energy Transfer’s Revolution Pipeline runs through Bulter, Beaver, Allegheny, and Washington counties in southwest PA. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see
The full U.S. Court of Appeals for the District of Columbia (DC Circuit) heard oral arguments yesterday in a case of major importance to the future of all federally-approved pipeline projects. The case revolves around the Federal Energy Regulatory Commission’s (FERC) use of something called a tolling order in approving Atlantic Sunrise Pipeline (in the PA Marcellus). Big Green groups launched the lawsuit in an effort to strip away FERC’s right to use tolling orders when considering requests to “rehear” decisions to approve pipelines.
The first phase (of three) for Sabal Trail, a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia, and Alabama to deliver Marcellus gas to the southeast, came online in June 2017 (see
Eighteen Pennsylvania State Senators sent a letter to Gov. Tom Wolf on April 21 asking Wolf to direct the state Dept. of Environmental Protection (DEP) to stop trying to ram through a new tax on carbon that will kill the state’s flourishing natural gas-fired electric generating plants.