Regulation

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    FERC Approves New Connection to Rover Lateral, but Not the Lateral

    Yesterday the Federal Energy Regulatory Commission (FERC) granted a “certificate of public convenience and necessity” (i.e. official approval) for Rover Pipeline to spend $4.7 million to build a new meter station along Rover’s Burgettstown Lateral. The new meter station, to be located in Jefferson County, OH, will connect a pipeline gathering system built and maintained by Utica Gas Services LLC, connecting the gathering system to Rover. The new connection will flow 350 million cubic feet per day of Utica Shale gas into the Rover pipeline system. But here’s the thing: FERC has not yet given Rover permission to begin flowing gas along the Burgettstown Lateral. FERC is playing hardball, withholding permission for Burgettstown and three other laterals until Rover (i.e. Energy Transfer) gets restoration work done along certain portions of the project (see FERC Continues to Block Rover Laterals Until Restoration Work Done). Obviously FERC is planning to let Burgettstown and the other laterals go online, it’s just a matter of time. But FERC is using the laterals (withholding startup) as leverage to make Rover do what it said it would do. Below is more information about UGS-Crawford Meter Station, as it’s called, and FERC’s approval of it…
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    3 Options for Blocked NY Marcellus-Fired Electric Plant

    Two days ago MDN told you that New York’s tinhorn dictator, Andrew Cuomo, pulled the rug out from under a fully-permitted and permissioned Marcellus-fired electric plant by directing his corrupt Dept. of Environmental Conservation (DEC) to withhold renewing an air permit previously granted (see Cuomo Strikes Again: Blocks Completed Gas-Fired Plant from Starting). We’ve since learned that the Competitive Power Ventures (CPV) Valley Energy Center, a $900 million, 680-megawatt natural gas-fired electric generating plant in Orange County, NY, was just four days away from throwing the switch and beginning operations. The DEC’s previous delays of the project have already cost the CPV $40 million in missed revenue. How much more pain will Cuomo and his corrupt DEC inflict on the plant? And, what can CPV do now, to overcome Cuomo’s blockage of the project? It appears there are three options: (1) contest the decision via an administrative appeals process; (2) seek a court injunction against the DEC; (3) apply for an EPA permit, which is what the DEC is telling them to do. All three options will take time. Seems to us that option #2 will take the least amount of time. CPV is right now mulling their next steps…
    Read More “3 Options for Blocked NY Marcellus-Fired Electric Plant”

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    FERC Commissioner Rob Powelson Leaving Friday – Deadlock Looms

    Our opinion of FERC Commissioner Rob Powelson has gone down over the past month or so (see FERC Gridlock Coming Thx to Rob Powelson (Selfishly) Leaving). Powelson is selfishly leaving FERC after doing excellent work at the agency over the past one year. FERC has five commissioners total. After Powelson leaves, new pipeline projects face the prospect of deadlocked 2-2 FERC votes because two of the commissioners are partisan Democrats who put party bosses above the good of the country (nothing new there). And that makes us angry with Powelson. He should have put his own ambitions on hold for a few more years, for the good of the country, and served out his entire term at FERC. So while Powelson admittedly did good work (he’s from PA and has been a champion for the Marcellus/Utica region), he’s now soiling his reputation by abandoning ship and leaving us with a deadlocked commission. Friday is Powelson’s last official day. He sat down for a final interview with FERC’s official podcast called Open Access…
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    Big News: FERC Overrules NY DEC to Approve Northern Access Pipe

    Finally, a New York pipeline story with a happy ending. On Feb. 3, 2017, the Federal Energy Regulatory Commission (FERC) approved a long-delayed project–National Fuel Gas Company’s (NFG) Northern Access 2016 pipeline project (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). The $500 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. Although FERC granted permission to build it, the State of New York, specifically the state’s Dept. of Environmental Conservation (DEC), arbitrarily and capriciously tried to block it (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). We’ve seen this movie before. NFG, in no mood to screw around with the Cuomo-corrupted DEC, filed a motion asking FERC for a “reconsideration and clarification” on the role of the DEC in reviewing the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). On Monday, FERC ruled on that request, ruling in NFG’s favor and against NY DEC. FERC said the DEC took longer than the one year they have under law to issue their rejection, therefore, FERC itself is issuing the water permits. In other words, FERC just struck a blow against corruption in New York State…
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    Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe

    In a pattern that has become obvious, and disturbing, the radicalized Sierra Club has once again prevailed in shutting down work on a second mammoth pipeline project–Dominion’s Atlantic Coast Pipeline (ACP)–by concentrating their legal arguments at one small, specific point of the project. This happened with Mountain Valley Pipeline (MVP). As we reported yesterday, the Federal Energy Regulatory Commission (FERC) told MVP to stop work on the entire project, at least for now (see FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA). The Sierra Club convinced the without-experience-in-the-oil-and-gas-industry judges of the federal Fourth Circuit Court of Appeals to overturn permits granted by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM) to build MVP across 3.5 miles of Jefferson National Forest, on the border of WV and VA. This time, with ACP, the Sierra Club convinced the Fourth Circuit to overturn permits granted by the U.S. Fish and Wildlife Service (FWS) and the U.S. National Park Service (NPS) granted to ACP to cross the Blue Ridge Parkway. However, the rolled-back permits affect more of ACP than MVP–about 100 miles of work out of 600+ miles. The court, in rolling back ACP’s permits all but told FERC they need to shut down work on the entire project until this matter is resolved. The court can’t order FERC to do so, but they strongly cautioned FERC that they should do so. Since FERC stopped work on MVP, it stands to reason they will do it with ACP too. So lightening has now struck twice, and it’s not good. Dominion maintains they will continue to build ACP except for those areas where the Fourth Circuit has rolled back permits. In other words, they’ll keep building it in North Carolina and some locations in WV. All eyes are now on FERC. We hate to say this, but our guess is that FERC will shut down the entire ACP project, for now. It’s virtually the same scenario as MVP which FERC elected to shut down. Why would this project be any different?…
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    Cuomo Strikes Again: Blocks Completed Gas-Fired Plant from Starting

    Andrew Cuomo is a tinhorn dictator who must be stopped (politically). NOW. Competitive Power Ventures (CPV) Valley Energy Center is a $900 million, 680-megawatt natural gas-fired electric generating plant in Orange County, NY (near the Hudson River). The plant is fully built, and the Millennium pipeline now flows Marcellus gas to it (see Millennium Lateral Pipe to NY Gas-Fired Elec Plant Begins Service). Valley Energy Center is tested, vetted, and ready to start producing electricity. But at the last minute, Cuomo pulled strings with his lapdog head of the Dept. of Environmental Conservation (DEC), Basil Seggos, and the DEC has rejected renewing an air permit for the facility. The DEC, using trickery and doublespeak, now says the project must file for a different kind of air permit, called a Title V Clean Air Act permit, which requires additional mountains of paperwork and (most importantly for Big Green radicals), more time for “public input”–including at least 45 days for review by the U.S. EPA. Why didn’t the DEC require that permit from the start? Why sandbag the project and wait until they’re ready to flip the switch, and then tell them “wrong permit”? This is an underhanded, dirty trick. It is corrupt. And it is Andrew Cuomo at the center of it…
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    Antis Oppose Williams Plan to Beef Up Compressor in Essex, NJ

    Gateway Expansion Project – click for larger version

    Last November Williams filed an application with the Federal Energy Regulatory Commission (FERC) to upgrade certain facilities in New Jersey along the Williams mighty Transco Pipeline, in order to flow an extra 65,000 dekatherms per day (or 65 million cubic feet) of natural gas to a couple of utility companies that have already signed on the dotted line as customers (see Williams Files FERC Appl for Transco “Gateway Expansion Project”). The project is called the Transco “Gateway Expansion Project” and will cost roughly $85 million. The upgrades include a new compressor unit at Transco’s existing Compressor Station 303 in Essex County, NJ, a new valve and electric transformer also in Essex County, and equipment upgrades at a metering station in Passaic County, NJ. Both PSEG Power and UGI Energy Services have signed up to receive the extra gas–to be distributed to their customers in the region. There is a public hearing tonight in Essex County concerning the compressor station. Big Green group Food & Water Watch (one of the worst of the worst) is planning to import protesters to try and disrupt the meeting, stirring up opposition by lying about the project and its safety. Meanwhile, Williams points out they’ve operated five compressor stations, including Station 303 in Essex, for “decades” with no accidents and a stellar safety record…
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    Sunoco Fined $148K for ME2 Drilling that Fouled PA Water Wells

    At various points over the past year or so, Sunoco Logistics, in using underground horizontal directional drilling (HDD) for the Mariner East 2 pipeline project, has negatively affected some private water wells. A dozen private wells were affected by ME2 work in West Whiteland Township, in Chester County, last summer (see Sunoco LP’s Generous Deal to Chester Co. Residents with Water Issues). Sunoco made the situation right in West Whiteland, paying to extend a local municipal water line to the affected homes. But West Whiteland wasn’t the only location. There were others, in Berks County and Lebanon County. To the best of our knowledge, all of the water well issues have been corrected. But as always happens with these incidents, companies like Sunoco must pay twice. They pay (handsomely) to fix the issue–as they should. But then they pay a fine to the state. The fine for fouling water wells in three counties related to ME2 work was handed down yesterday by the Dept. of Environmental Protection. Sunoco has to pay $148,000 for violating PA’s Clean Streams Law and Dam Safety and Encroachment Act…
    Read More “Sunoco Fined $148K for ME2 Drilling that Fouled PA Water Wells”

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    FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA

    The radical Sierra Club can claim a new temporary victory in its war to stop a major natural gas pipeline. We previously told you the Clubbers, who use money from donors to weaponize our own court system against us, convinced the U.S. Court of Appeals for the Fourth Circuit to overturn permits issued by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM) that allows EQT Midstream’s 303-mile Mountain Valley Pipeline to cross 3.5 miles of Jefferson National Forest in West Virginia and Virginia (see Court Cancels Permits for Mountain Valley Pipe on Fed Land). The court says USFS and BLM didn’t come to the right conclusion about sedimentation and erosion impacts of MVP. The judges (who don’t know a thing about these issues) say USFS and BLM’s contention that impacts can be adequately mitigated is in error. Because the project is stopped at that one tiny 3.5-mile location, on Friday the Federal Energy Regulatory Commission (FERC) issued a stop work order for the entire project. At least for now. In the stop work order, FERC indicates they think the USFS and BLM will soon reissue the permits overturned by the Fourth Circuit, and when that happens, work on the rest of the project will resume. But FERC can’t predict when that will happen, so in the meantime, all work (except to stabilize certain areas to protect against erosion) must stop. What gripes us is that Sierra Club radicals were able to shut down an entire project by concentrating on a technicality at one, small point. What a disgusting, anti-American organization. MVP issued a statement this morning to say the the pipeline will get built, and will likely keep its schedule of going online in the first quarter of 2019…
    Read More “FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA”

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    FERC Approves Spire St. Louis Pipeline to Flow M-U Gas

    Spire STL Pipeline route – click for larger version

    In February 2016, MDN told you about an exciting new market for Marcellus and Utica Shale gas that may open up one day in the Midwest (see New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas). Laclede Group, a St. Louis-based natural gas utility, said they want to build a ~65-mile pipeline from St. Louis through southwest Illinois and connect to the Rockies Express (REX) and Panhandle Eastern Pipeline. The new pipeline would bring low-cost Marcellus and Utica Shale gas from REX to the utility–not only for resale to gas customers, but also potentially for new natgas-powered electric plants planned to replace retiring coal-fired plants. A year later (February 2017) Laclede was renamed Spire and the Spire STL Pipeline filed an official application with the Federal Energy Regulatory Commission to build the 24-inch diameter pipe that would flow 400 million cubic feet (MMcf) per day of yummy Marcellus/Utica gas from REX to St. Louis (see Spire Files Plan with FERC to Flow Marcellus/Utica Gas to St. Louis). The original timeline showed Spire thought FERC would approve the project in December 2017. Never happened. Then Spire said FERC approval should come along in “early 2018” (see Spire Expects Early 2018 FERC Approval for M-U Gas to St. Louis Pipe). That never happened either. Finally, last Friday, before FERC Commissioner Rob Powelson slips out the door in another week or so to leave behind him a hopelessly deadlocked 2-2 FERC (thanks Rob), the agency finally issued a full, final approval for the Spire STL project. The new “in-service” date has been recalculated to be “late 2019″…
    Read More “FERC Approves Spire St. Louis Pipeline to Flow M-U Gas”

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    PA PUC Allows ME2 Pipeline Work to Restart Near Philly

    The Pennsylvania Public Utility Commission (PUC) yesterday voted 3-2 to allow construction to resume on the Mariner East 2 and 2x pipelines in West Whiteland Township, Chester County (near Philadelphia), ending a weeks-long stoppage specific only to that area. The shutdown began in May after a PUC administrative law judge’s highly questionable ruling, which affected ME1, ME2 and ME2x (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). After an initial three-week shutdown, the PUC voted in June to approve the restart of ME1 (see PA PUC Overrules Lib Judge – Mariner East 1 Returns to Service). It was the second time in a little more than a month that the PUC voted to restart the line after finding it poses no risk. Work in West Whiteland Township for ME2 has been paused since the administrative law judge’s May ruling. With the PUC’s action yesterday, Sunoco can resume work on the project in Chester County. Although they can’t resume work on all of it. The vote yesterday does not lift the construction ban on four locations in West Whiteland waiting for new/revised permits from the state Dept. of Environmental Protection (DEP). Still, this is a big positive, and a major blow to antis who are not happy…
    Read More “PA PUC Allows ME2 Pipeline Work to Restart Near Philly”

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    FERC Continues to Block Rover Laterals Until Restoration Work Done

    The Federal Energy Regulatory Commission (FERC) continues to play hardball with Energy Transfer over the Rover Pipeline. FERC refuses 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 hasn’t, 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. In a letter to FERC on Tuesday, ET said more work will be completed by the end of this month. In other words, “We’re bustin’ our hump here, please please please let us start up those laterals.” So far, silence from FERC. The game of hardball continues…
    Read More “FERC Continues to Block Rover Laterals Until Restoration Work Done”

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    US Senate Bill Fixes States Blocking Pipelines via Water Permits

    Once upon a time, before far-out liberal governors like NY’s Andrew Cuomo weaponized the federal Clean Water Act (CWA), states would use their federally-delegated authority under the CWA (Section 401) to provide feedback and get changes/tweaks to interstate pipelines passing through their respective states. Then Cuomo (now others) started bending the intent of their delegated authority under the CWA and began abusing it to block federal policy by blocking approved pipelines that benefit the citizens of many states. That’s why the Federal Energy Regulatory Commission (FERC) was created–to review and authorize energy projects, like pipelines, that pass through multiple states. If not for FERC, no pipelines (or electric transmission lines) would ever get built across state lines because one state will selfishly block such projects–“What’s in it for us?” Andrew Cuomo has stated publicly that he has and will continue to block interstate pipeline projects and new gas-fired electric plants (see NY Gov. Cuomo Says He’ll Block All New Gas-Fired Elec Plants). This must stop. Cuomo’s actions violate the spirit if not the letter of the law. There has been an outcry to overrule Cuomo and others abusing their CWA authority. Until now, it’s been all talk. Talk is cheap. Who will stand up to the bully Cuomo and other bullies like him? Four brave senators from the U.S. Senate, that’s who. Senators John Barrasso (R-WY), chairman of the Senate Committee on Environment and Public Works, Shelley Moore Capito (R-WV), Jim Inhofe (R-OK), and Steve Daines (R-MT) have introduced a bill called “Water Quality Certification Improvement Act of 2018” that will ensure state water quality permitting reviews for proposed pipeline projects are limited to direct water quality impacts of that pipeline, and that decisions to grant or deny a permit must be made based on water quality reasons only. It plugs loopholes currently used by Cuomo and others under the CWA 401 certification process. In other words, the senators are about to slap Andy Cuomo and those like him back into line–IF the bill passes…
    Read More “US Senate Bill Fixes States Blocking Pipelines via Water Permits”

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    Enviro Groups Back Down on Challenging DEP Permits for ME2 Pipe

    An interesting development on Friday, when the Pennsylvania Dept. of Environmental Protection (DEP) issued a press release to announced that three radical environmental groups have dropped their objections to permits the DEP previously granted for the Mariner East 2 Pipeline. Clean Air Council, Mountain Watershed Association, and THE Delaware Riverkeeper “settled” their appeal of 20 permits issued to Sunoco for the ME2 project. What does it mean that they “settled?” According to the announcement, “The settlement does not alter any of the 20 permits in the appeal.” In other words, this is face-saving by the radical groups. They backed down. Gave up. Threw in the towel–recognizing that ME2 is about to be completed. In other words, they’ve lost. And we won! We love saying that. No matter how hard the radicals tried to spin the news (via their affiliated mouthpieces, like StateImpact Pennsylvania), you simply can’t gloss over the fact that they’ve backed down…
    Read More “Enviro Groups Back Down on Challenging DEP Permits for ME2 Pipe”

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    OH Wayne Natl Forest Landowners Tired of Waiting, Take Fight to DC

    Bureaucrats deeply embedded in the federal Bureau of Land Management (BLM) are engaged in denying private property owners with property in the Ohio Wayne National Forest (WNF) their property rights. That’s the very serious (and true) charge being levied by members of the National Association of Royalty Owners (NARO). After “seven years of inaction,” property owners in WNF have taken their case to Washington, D.C.–to elected representatives from Ohio, along with federal agencies–in hopes of getting Utica drilling under way in WNF. After 10 long years, the BLM finally auctioned 719 acres in WNF in December 2016 (see BLM Auction Leases 17 Parcels, 719 Acres in OH Wayne Natl Forest). Since then BLM has held three more auctions. Ultimately there are some 18,000 acres under consideration for leasing by the BLM in WNF, a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned! Those mineral rights owners have been denied the use of their property rights for more than a decade. It was thought with the beginning of auctions the situation would be remedied. Not so. Not a single drilling permit has been issued following the auctions. BLM bureaucrats are threatening private landowners that their property, if it belongs to a drilling unit along with BLM auctioned land, will be subject to a full National Environmental Policy Act (NEPA) review. Enough! It’s time to put an end to unelected DC swamp dwellers blocking Utica drilling in WNF…
    Read More “OH Wayne Natl Forest Landowners Tired of Waiting, Take Fight to DC”

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    PA DEP Orders CNX, XTO & Diversified to Plug 1,058 Abandoned Wells

    Yesterday the Pennsylvania Department of Environmental Protection (DEP) issued administrative orders requiring three oil and gas companies–Alliance Petroleum Corporation (a subsidiary of Diversified Gas & Oil), XTO Energy, and CNX Resources–to plug 1,058 abandoned oil and gas wells across Pennsylvania. Alliance has 638 wells, CNX has 327, and XTO has 93. In a quick scan of the list of wells to be plugged, we didn’t spot a single shale well. All 1,058 wells are conventional/vertical wells. So why is this news for MDN? Because all three drillers (but in particular CNX and XTO) drill shale wells, and plugging old conventional wells takes time and money–time and money that could be spent on drilling shale wells. It takes anywhere from $10,000 to $100,000 to plug an abandoned conventional oil/gas well. Most of the wells are located in the southwestern part of the state. CNX responded that in reviewing the list, some 190 of the wells in their list (out of 327) were part of a recent asset sale. Here’s the details on where, and how long these companies have, to plug old/abandoned oil and gas wells…
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