House Flipping Democrat Portends Trouble for O&G Industry
The results of Tuesday’s elections, with the House of Representatives flipping to Democrat control, is a disaster. That is our considered opinion. And not just because we’re died-in-the-wool conservatives and believe in freedom and the rule of law. But for what it portends for the oil and gas industry. Some on our side, the pro-fossil fuel side, think everything’s just fine with Dems in control of the House. They say the oil and gas industry likes “divided government” because it ensures any changes that happen will happen slowly. We’re not convinced. Why? We look at the actual words of those seizing (and we use that word intentionally) power come January. The House, under Democrat tyranny, is gearing up to hold hearings on everything, including so-called “climate change” and Trump’s efforts to roll back egregious Obama regulations related to “climate change.” Dems plan to use the power of subpoena to try and stop efforts to right-size and eliminate unnecessary regulations in agencies like the EPA. We think the oil and gas industry, whether they admit it or not, is in for the fight of its life come January 1. We hope we’re wrong. We fear we are not.
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Miracle of miracles, two (!) Democrat FERC commissioners (Cheryl LaFleur and Dick Glick), along with one Republican commissioner (Chairman Neil Chatterjee), voted unanimously to extend the time frame by another two years for Williams to build the Constitution Pipeline. As you may recall, the Constitution was stopped cold by corrupt NY Gov. Andrew Cuomo and his lackeys at the state Dept. of Environmental Conservation (DEC). Constitution is planned to run from Susquehanna County, PA up into, and mostly situated in, New York State. Cuomo won’t be happy with this decision because it’s a very loud and clear signal that FERC believes the project *will* some day get built.
Who regulates what when it comes to the federal government and the oil and gas industry? We have an alphabet soup of federal agencies and agencies within agencies that regulate some aspects of drilling (on federal lands), pipelines, and by extension (because of air emissions) compressor stations, trucking and more when it comes to our industry. We recently spotted a helpful article that gives a high-level overview of who is regulating what. It’ll make your head spin! And this is just at the federal level. Add to this each state with its own regulatory fiefdoms and it’s a miracle any drilling ever happens.
Flashback: In May of this year, Energy Transfer CEO Thomas Long said Rover Pipeline would be fully online by June 1st (see 
MPLX, i.e. MarkWest Energy, has been slapped pretty hard by the federal Environmental Protection Agency, Pennsylvania Dept. of Environmental Protection, and several other state environmental agencies. Last Thursday the federal EPA serving as lead agency, announced a settlement with MPLX (and its various subsidiaries) to pay nearly $7 million in fines and corrective actions to cut down on air emissions at 21 of its plants in Pennsylvania, Ohio, West Virginia, Kentucky, Texas and Oklahoma. Of that total, $925,000 is a fine or “penalty” for violating clean air laws at the plants. The rest of the money will be spent on corrective actions to fix things and cut down on air emissions.
On Sept. 10, Energy Transfer’s 24-inch gathering pipeline in Beaver County, PA, called the Revolution Pipeline, caught fire and exploded during testing (see 
A group of 13 landowners in Virginia whose property was force taken by Mountain Valley Pipeline (MVP) using eminent domain is appealing a case they already lost in federal court to the U.S. Supreme Court. The landowners claim MVP has taken private land–their land–to use for private/corporate gain and not (as the law requires) taken for a “public” benefit. Eminent domain allows the taking of private land for public benefit, but not taking private land for private benefit. The issue really revolves around the question of, What is a public benefit? Can a private company use government powers because what they provide benefits the public? The big question is, will the Supreme Court, which gets some 8,000 such appeals each year, make this appeal one of the 80 or so they consider?
In early October NEXUS Pipeline, a $2.6 billion, 255-mile interstate pipeline that runs from Ohio into Michigan, received permission from the Federal Energy Regulatory Commission to begin partial operation (see 
Although EQT Midstream’s 303-mile Mountain Valley Pipeline (MVP) project has experienced a number of legal and regulatory setbacks and is currently blocked from constructing pipeline across/under/near any river, stream, or wetland in all of West Virginia and all of Virginia (some 1,100 different locations), believe it or not there are still many places where MVP can and is still installing pipeline (see 
Two weeks ago Enbridge, owner of the Texas Eastern Transmission Company (Tetco) Pipeline, announced it had put part of its Texas Eastern Appalachian Lease (TEAL) natural gas pipeline project in Ohio into service (see 