Regulation

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FERC Finally Approves 2 Key Rover Pipeline Laterals, Sept 1 Start
August 27, 2018August 27, 2018

The Federal Energy Regulatory Commission (FERC) game of hardball with Energy Transfer over the Rover Pipeline has finally paid off. For months FERC has refused to allow four Rover laterals–feeder pipelines to shuttle gas from where it’s produced into the main Rover pipeline–to start up (see FERC Plays Hardball with Rover – Refuses to Certify 4 Laterals). The reason? ET has not, according to FERC, lived up to its word on restoration work. Things like smoothing over the dirt and replanting grass and other vegetation over top of the buried pipeline. Earlier this month ET assured FERC it would have the majority of restoration work done on two key laterals–the Burgettstown Lateral in southwestern PA, and the Majorsville Lateral in the northern panhandle of WV–by the end of this month (see FERC Continues to Block Rover Laterals Until Restoration Work Done). With recent evidence that ET is indeed living up to its word, last Thursday FERC gave ET permission to start up both the Burgettstown and Majorsville Laterals on Sept. 1. The majority of the restoration work will be done by this Friday, Aug. 31. However, there will still be some odds and ends after that (addressing “ground movement areas) that will go on through December. That leaves two final laterals–the CGT (Columbia Gas Transmission) and Sherwood Laterals, still not online. This is a prime example of FERC playing hardball, contrary to the “rubber stamp” antis claim FERC is for pipeline companies…
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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Partial Victory for PA Drillers re DEP Chapter 78a Drilling Regs
August 27, 2018August 27, 2018

The Pennsylvania Commonwealth Court has handed PA drillers a partial victory in their quest to block onerous new drilling regulations, part of something called Chapter 78a. In October 2016, after five years in the making, PA adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf Administration. Wolf’s people mangled the regulations under the Dept. of Environmental Protection (DEP) Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). In December 2016, the DEP escalated the case by asking the PA Supreme Court to undo the block on those regulations imposed by the lower Commonwealth Court. Last October the Supremes heard oral arguments in the case, and in June of this year the Supremes ruled to not undo the block on DEP’s onerous regs–but instead bumped the case back down to Commonwealth Court to let the matter play out there (see PA Supreme Court Upholds Block on DEP Chapter 78a Drilling Regs). Last week Commonwealth Court struck down provisions in Chapter 78a (f) and (g) defining “common areas of a school’s property and playgrounds,” and “species of special concern” as public resources under Act 13. While we didn’t get 100% of what we wanted, we got maybe 95%–at least for the two provisions in sections (f) and (g). Other parts of the lawsuit are still under consideration by Commonwealth Court. Here’s the deets on this important victory for Marcellus drillers…
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Air Quality | Industrywide Issues | Regulation

EPA Proposes “Affordable Clean Energy” Plan to Replace Obama CPP
August 27, 2018August 27, 2018

One more piece of the Obama “legacy”–the onerous, wildly unpopular Clean Power Plan (CPP) that assassinates coal powered energy and mortally wounds natural gas in favor of so-called renewable sources of energy–is now history. Well, it will be history after a few more years of legal wrangling. Let’s say the CPP is well on its way to the garbage can of history, where it belongs. The CPP (see The Many Flaws with President Obama’s Clean Power Plan) will be replaced by a new plan released last week by the federal EPA called the Affordable Clean Energy (ACE) Rule. Instead of Big Brother dictating what power sources an individual state can and can’t use, ACE empowers states, promotes energy independence, and facilitates economic growth and job creation. “The ACE Rule would restore the rule of law and empower states to reduce greenhouse gas emissions and provide modern, reliable, and affordable energy for all Americans,” said EPA Acting Administrator Andrew Wheeler. Hmmm, maybe we’re beginning to warm up to swamp-dweller Wheeler after all. If he can pull this off, we’ll feel better about leaving him as head of the agency…
Read More “EPA Proposes “Affordable Clean Energy” Plan to Replace Obama CPP”
Industrywide Issues | Litigation | Regulation

Waters of US Ruling – Glass Half Full?
August 21, 2018August 21, 2018

Last week MDN told you about a George H.W. Bush district court judge in South Carolina who reversed EPA Administrator Scott Pruitt’s order ending the tragedy of Obama’s Waters of the United States (WOTUS) rule (see Fed Judge Revives Obama Waters of US Tragedy in 26 States). WOTUS is important, because when you redefine everything down to a mud puddle (we’re not joking) as a “body of water” under the authority of the Clean Water Act, you effectively put all oil and gas drilling (and agriculture activities) under the thumb of the federal government. We were bummed about the judge’s decision. But we were focusing on the 26 states, including New York, Pennsylvania and Ohio, that are now subject to WOTUS overreach. But what if we look at the glass as half-full instead of half-empty? Somehow, due to the vagaries of law, the other 24 states (or 33 states if you are Barack Obama, who once infamously said there are 57 states), are not under the Obama WOTUS rule. In other words, the glass is half-full–in particular for West Virginia which is not under WOTUS. The legal beagles at the Davis Wright Tremaine law firm flip the news around and look at the glass-half-full aspect of WOTUS…
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Anti-Drilling/Fossil Fuel | Columbia Pipeline Group | Energy Services | Industrywide Issues | Maryland | Pipelines | Regulation | Statewide MD

Eco-Nuts File FERC Rehearing Request for Pipe Under Potomac
August 20, 2018August 20, 2018

Anti-fossil fuel nutters are on a holy mission to stop a 3.5-mile, 8-inch pipeline from being built under the Potomac River by Columbia Gas, from Maryland to West Virginia (see Maryland Antis Oppose 13th Pipeline Under Potomac as “Dangerous”). The pipeline will be built to feed a larger pipeline project from Mountaineer Gas called the Eastern Panhandle Expansion–a pipeline to deliver Marcellus/Utica natural gas via local distribution channels to a new industrial facility in Berkeley County, WV, and to provide gas to other local businesses and residents in the Tri-State area. Mountaineer began building their project in March (see Mountaineer Gas Begins Work on Morgan County, WV Pipeline). Phase one of the Mountaineer project is done and they’re now working phase two. In July, the Federal Energy Regulatory Commission approved Columbia’s pipeline-under-the-Potomac project to feed the Mountaineer project (see FERC Approves Pipeline Under the Potomac River from Md. to WV). Antis were enraged. Here’s the inconvenient truth that mainstream news organizations fail to report: This tiny 3.5-mile pipeline will be Columbia’s 13th pipeline under the Potomac! Yet antis insist THIS is the one pipeline that will explode and contaminate the Potomac and make the water flowing down the muddy Potomac undrinkable for millions. Total BS. Antis have just filed a request with FERC to “rehear” (i.e. reconsider) the decision to approve the pipeline under the river. Once FERC officially denies that request (as they surely will), antis are then free to file a lawsuit challenging the project with the U.S. Court of Appeals…
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Energy Companies | Industrywide Issues | Litigation | Questerre Energy | Regulation

Questerre Energy to Challenge Quebec’s Utica Frack Ban in Court
August 20, 2018August 20, 2018

The Utica Shale, which underlies much of the Marcellus Shale, also underlies part of Canada’s Quebec province. From time to time we highlight news concerning the Utica in Canada. There hasn’t been much news to highlight over the years since Quebec has had a moratorium on fracking since 2012. But as we reported in December 2016, something of a minor miracle happened–the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan” (see Fracking in Canadian Utica Shale Takes Big Step Closer to Reality). The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Then in September 2017, Quebec did the unthinkable (for radical environmentalists)–they published draft Utica drilling regulations (see Quebec Government Publishes Draft Utica Fracking Regulations). Canadian driller Questerre believes Utica drilling can begin this year (see Questerre Plans 8 Initial Well Pads in Canadian Utica 2018-2019). News of new Utica regs caused antis in Canada to go berserk. The pressure got to be too much and the politicians decided in June of this year that they will commit fracking suicide instead (see Quebec to Ban Utica Shale Drilling, Most Other Drilling Too). Questerre isn’t taking it lying down. They have considerable acreage in the Quebec’s Utica. Questerre issued a press release this morning to celebrate Bill 106 (passed in 2016) finally going into effect–and to say as for the frack ban, Questerre will sue the government as soon as it’s implemented, to try and get it overturned…
Read More “Questerre Energy to Challenge Quebec’s Utica Frack Ban in Court”
Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Jobs | Litigation | Pipelines | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

FERC Lets MVP Restart Work on 25% of Pipe; MVP Lays off ‘Thousands’
August 17, 2018August 17, 2018

The Federal Energy Regulatory Commission (FERC) has had a change of heart–sort of–with respect to their stop-work order issued to Mountain Valley Pipeline (MVP). We previously told you that on August 3, FERC told MVP to stop all construction prompted by an order from the U.S. Court of Appeals for the Fourth Circuit vacating permits issued for the project as it crosses 3.5 miles of Jefferson National Forest in West Virginia and Virginia (see FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA). In a letter to FERC this past Tuesday, MVP asked FERC to reconsider and allow them to restart construction for at least part of the pipeline. FERC agreed and partially lifted the stop-work order a day later, on Wednesday. The new order allows MVP to work on the project for 77 of its 303 miles–about 25%. However, in a sad announcement, MVP said because so much of the project remains (for now) idled, it is laying off 50% of the workers who had been working on it. It’s estimated that around 6,000 people are employed directly or indirectly on the project, which means “thousands” (perhaps as many as 3,000 people) are now out of work–thanks to the Sierra Club and their lawsuit. Hey, how many jobs has the Sierra Club created? What’s that? NONE?! And how many jobs has the Sierra Club destroyed? We’d estimate it to be in the tens of thousands. MVP also announced that due to the ongoing work stoppage and delays, the project completion and in-service date has now slipped to the end of next year–an additional nine months. It’s a sad day indeed…
Read More “FERC Lets MVP Restart Work on 25% of Pipe; MVP Lays off ‘Thousands’”
Chester County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

PA DEP Gives ME2 Pipe OK to Restart Construction Near Philly
August 17, 2018August 17, 2018

Work on the Mariner East 2 and 2x pipelines in West Whiteland Township, Chester County (near Philadelphia) stopped in May following a Public Utility Commission (PUC) administrative law judge’s highly questionable ruling (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). The PUC overruled the judge in early August, allowing most work to restart in West Whiteland–in all but four locations (see PA PUC Allows ME2 Pipeline Work to Restart Near Philly). The remaining four locations involve underground horizontal directional drilling (HDD) work that has led to sinkholes. Yesterday the PA Dept. of Environmental Protection announced they have reviewed two of the four remaining locations and say revised plans submitted by Sunoco Logistics Partners (the builder) look good to them. That is, Sunoco can restart construction in those two locations as soon as the PUC gives them the go-ahead. The DEP is now reviewing the final two locations. Seems as if we’re fighting for every single inch to finish this project…
Read More “PA DEP Gives ME2 Pipe OK to Restart Construction Near Philly”
Industrywide Issues | Jobs | New York | Pipelines | Regulation | Statewide NY

Cuomo Pipe Policies Put Thousands of Union Members Out of Work
August 17, 2018August 17, 2018

The U.S. Senate Environment and Public Works Committee held a hearing yesterday to consider the Water Quality Certification Improvement Act of 2018 (S. 3303). Two weeks ago we told you about S. 3303, a bill that will “fix” the issue of states like New York using Section 401 of the Clean Water Act, which allows states to have a say in where interstate pipeline routes can pass through a state, from abusing that authority to block pipeline projects (see US Senate Bill Fixes States Blocking Pipelines via Water Permits). One of the people testifying at yesterday’s hearing was Brent Booker, the secretary-treasurer of North America’s Building Trades Unions. Brent represents some 3 million (!) union workers. He spoke passionately about the damage that has been done by NY Gov. Andrew Cuomo in blocking new pipeline projects. Because of Cuomo’s actions, literally thousands of union workers (Democrat voters) are now out of work–people who could have been working all along but aren’t because Cuomo is abusing the federal Clean Water Act’s Section 401 to politically block new fossil fuel pipelines…
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Industrywide Issues | Litigation | Regulation

Fed Judge Revives Obama Waters of US Tragedy in 26 States
August 17, 2018August 17, 2018

U.S. District Judge David Norton

Just when you thought we were making progress in reversing some of the cancerous regulations imposed by Lord Obama, up pops a swamp-dwelling judge (appointed by George H.W. Bush, George the 1st) to reinstate the idiotic “Waters of the United States” (WOTUS) regulation in 26 states. In May 2015, Obama’s radical Environmental Protection Agency (EPA) along with the Obama U.S. Army Corps of Engineers (USACE) released a finalized rule clarifying what WOTUS means vis a vis what can be regulated under the federal Clean Water Act (see EPA Power Grab: Redefines Waters of the U.S. to Include Everything). Essentially the rule change redefined everything down to mud puddles (and no, we’re not exaggerating) as being subject to the federal Clean Water Act. It was yet another attempt to bring oil and gas regulation under the purview of the federal government, a violation of the U.S. Constitution. We won’t recount the history of lawsuits and counter lawsuits that ensued. We’ll only tell you that in January the U.S. Supreme Court entered the fray by determining which courts can hear lawsuits regarding WOTUS (see U.S. Supreme Court Changes Jurisdiction for WOTUS Challenges). In February, then-EPA Administrator Scott Pruitt (we’re sorry he’s now gone) suspended the existing WOTUS until two years from now when a new WOTUS will be ready (see EPA Director Scott Pruitt Suspends Obama WOTUS Rule). The swamp-dwelling, Bushie U.S. District Judge David Norton threw that out and reinstated WOTUS. It’s OK for Obama and his droids to take the law into their own hands, but when another administration comes in and wants to wash away the stain of overregulation, that’s not OK. We call that protecting the swamp…
Read More “Fed Judge Revives Obama Waters of US Tragedy in 26 States”
Electrical Generation | Industrywide Issues | Litigation | New York | Orange County | Regulation

NY Judge Overrules DEC, Allows Gas-Fired Plant to Start Up
August 16, 2018August 16, 2018

A new hope has emerged for Competitive Power Ventures (CPV) Valley Energy Center, a $900 million, 680-megawatt natural gas-fired electric generating plant in Orange County, NY. Last week MDN told you that at the last minute, four days before the plant was set to start up, the Andrew Cuomo-corrupted Dept. of Environmental Conservation (DEC) pulled the ultimate dirty trick and refused to renew an air permit for the plant they previously issued five years earlier (see Cuomo Strikes Again: Blocks Completed Gas-Fired Plant from Starting). The DEC now says the plant will need a different (federal) air permit before it can start up, effectively blocking it. As we told you in a followup article, the DEC’s dirty trick left CPV with three options (see 3 Options for Blocked NY Marcellus-Fired Electric Plant). Option #2 in our list was to ask a judge to overturn the DEC’s decision (our preferred option). CPV exercised that option and yesterday the judge agreed and shut down DEC’s ability to stop the plant from starting up, which will now happen this week or early next week. Great news! However, the judge’s order is temporary, while a larger lawsuit works its way through the court system. In the meantime, CPV will start the plant, a victory for the good guys. The best part? PA Marcellus fracked gas will feed it…
Read More “NY Judge Overrules DEC, Allows Gas-Fired Plant to Start Up”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

Atlantic Coast Pipeline Asks FERC to Lift Stop-Work Order
August 16, 2018August 16, 2018

Borrowing a chapter from EQT and their Mountain Valley Pipeline project, Dominion Energy has asked the Federal Energy Regulatory Commission (FERC) to lift a stop-work order for its 600+ mile Atlantic Coast Pipeline (ACP) project. On Tuesday MVP sent a letter to FERC requesting the agency lift it’s stop-work order for them (see Mountain Valley Pipe Asks FERC to Lift Stop Work Order). A day later, yesterday, ACP did the same thing. Last week a federal court pulled permits for approximately 100 miles (of 600 miles) for ACP in response to a frivolous lawsuit filed by the anti-American Sierra Club (see FERC Shuts Down ALL Work on Atlantic Coast Pipeline). The Clubbers convinced the Fourth Circuit Court of Appeals to overturn permits granted by the U.S. Fish and Wildlife Service and the U.S. National Park Service, granted to ACP to cross the Blue Ridge Parkway. The court, in rolling back ACP’s permits, told FERC they should shut down work on the entire project until this matter is resolved. Last Friday FERC did just that. Yesterday Dominion politely asked FERC to ignore the court and lift the ban for those portions not part of the actual court order. Dominion got some moral support from West Virginia’s congressional delegation in their effort. Senators Joe Manchin and Shelley Moore Capito, along with Rep. David McKinley wrote a letter to FERC asking the agency to lift the stop-work order for both ACP and MVP…
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Industrywide Issues | Pennsylvania | Regulation | Roads | Statewide PA

PA Senate Bill Encourages Use of Conventional Brine on Roadways
August 16, 2018August 16, 2018

A bill under active consideration in the Pennsylvania Senate would remove the PA Dept. of Environmental Protection’s (DEP) prohibition against using brine from conventional oil and gas wells on PA’s roadways (see DEP Continues to Block Use of Brine on PA Dirt Roads). This past spring the DEP notified townships they could no longer use brine, a cheap source of “road salt” for deicing roads and (in liquid form) for spreading on dirt roads to keep the dust down. Brine from shale wells has never been allowed on PA’s roads–so this only concerns conventional drillers/wells. The move by DEP to block brine use, among other DEP actions, angered the industry and led to bills being introduced by both the House and Senate that “roll back” (more like “lock in”) regulations that govern conventional PA drilling to the Oil and Gas Act of 1984 (see 2 PA Bills Would Roll Back Conventional Drilling Regs to 1984). The House already passed their version of the bill back in June (see PA House Passes Bill Exempting Conventional Drillers from Shale Regs). The corresponding Senate bill is now being discussed. Part of the bill, if passed, tells the DEP it must “encourage” (not ban) the use of conventional brine…
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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pipelines | Regulation

Mountain Valley Pipe Asks FERC to Lift Stop Work Order
August 15, 2018August 15, 2018

EQT Midstream and its partners in the Mountain Valley Pipeline (MVP) project are trying to convince the Federal Energy Regulatory Commission (FERC) to lighten up and reconsider lifting most of a stop-work order for the entire 303-mile pipeline project. In a 7-page letter to FERC yesterday, Matthew Eggerding, EQT Midstream’s top lawyer, outlined his company’s case for allowing them to restart work on most of the pipeline. Two weeks ago FERC ordered MVP to shut down all construction for the entire project following a court case that overturned permits for a tiny, 3.5-mile section of the project as it runs through the Jefferson National Forest (see FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA). In delivering its stop-work order, FERC said while it expects the two federal agencies involved (U.S. Forest Service and Bureau of Land Management) to quickly rework and reissue the permits overturned by the court, they (FERC) don’t know when that will happen and so in the meantime, just shut it all down. MVP is asking them to reconsider. What happens if FERC doesn’t reconsider and MVP stays shut down until the court gives the OK for reissued permits? According to EQT’s incoming CEO Rob McNally, “that would certainly put the first-quarter [2019] timing in jeopardy.” Meaning all bets are off…
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Energy Companies | Industrywide Issues | Mercer County | Pennsylvania | Pipelines | Regulation | Shell

Shell to Remediate PA Swamp in Return for Falcon Pipe Permit
August 15, 2018August 15, 2018

Shell is proposing to remediate a swamp in Mercer County as a way to “offset” the “impacts” of building an ethane pipeline to feed it’s mighty cracker plant under construction in Beaver County. Oops. Sorry. Instead of calling it a swamp, the PC term is “wetland.” Shell will make a swampy portion of Neshannock Creek in Mercer County swampier, in return for permission to build the Falcon ethane pipeline elsewhere. Apparently it’s not the first time Shell has proposed such a swap. Shell is in the middle of remediating a swamp in Washington County in return for “local impacts” (i.e. “damage” to the environment) they’re causing by building the cracker plant itself. This is not an uncommon practice–across the country. We happen to think it’s silly. Either a project is worthwhile–worth “damaging” some of our precious environment, because of the greater good it will bring–or not. Playing this game of “I’ll spoil this area here, so I’ll un-spoil that area over there” is senseless, in our humble opinion. But hey, if that’s the game we must play to get it built…
Read More “Shell to Remediate PA Swamp in Return for Falcon Pipe Permit”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

FERC Approves Transco Pipeline Expansion in New Jersey
August 14, 2018August 14, 2018

Click for larger version

Last Friday, before Federal Energy Regulatory Commission (FERC) Commissioner Rob Powelson left the building for the last time, FERC approved a small but important expansion of the Williams Transco Pipeline in New Jersey, called the Rivervale to South Market project. We first told you about the Rivervale project last year when Williams filed an application for it with FERC (see New Project Seeks to “Uprate” Transco Pipeline in Northern NJ). The Rivervale project will expand the mighty Transco pipeline in northern New Jersey to deliver an extra 190 million cubic feet per day (MMcf/d) of low-carbon, clean-burning Marcellus Shale gas to markets in northern NJ and New York City. The project calls for “uprating” a little over 10 miles of pipeline (same pipeline with more pressure and more gas), and adding a half mile of new looping pipeline–which is more than enough to set off the whackadoodles at the NJ Sierra Club. One of two Democrat FERC commissioners, Richard “Dick” Glick, voted in part against approving the project because he says it will lead to more global warming. Typical lib Dem. Here’s Williams’ good news announcement, and a copy of FERC’s 46-page approval…
Read More “FERC Approves Transco Pipeline Expansion in New Jersey”