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Cabot Issues Update on Atlantic Sunrise – Possible Route Change

route-changeWe spotted a press release issued yesterday by Cabot Oil & Gas, providing an update for the Williams Atlantic Sunrise Pipeline project. Which kind of surprised us. Why would Cabot issue an update on someone else’s pipeline? Is Cabot an investor in the project? We asked–the answer is “no.” However, Cabot is the major shipper that will use the Central Penn Line portion of the Atlantic Sunrise project. And that’s what the announcement was about. Cabot said the Federal Energy Regulatory Commission (FERC) has announced it is actively reviewing two alternative routes for the Central Penn Line, accepting public comment until Nov. 14. OK, so that sometimes happens. Is it worth a press release? Then we read that this development means yet another delay for the Atlantic Sunrise project–and investors immediately punished the stock for both Williams and Cabot. Ah, now we understand! The press release is to reassure investors that Cabot believes FERC, while slowing things down a little, won’t delay things too long. THAT’S what the press release is really all about…
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Dominion Announces $145M Project to Expand Gas Supply to DC & MD

ema-map-298wDominion recently announced a new pipeline project called Eastern Market Access Project. The project will beef up two compressor stations in Virginia, build a new compressor station in Maryland, and add a couple of pipeline taps near Washington, D.C. The purpose of the $145 million project is to deliver more gas to Washington Gas, and to deliver gas to a new gas-fired electric power plant being built in Maryland. We suspect Marcellus/Utica gas will be the added gas flowing to both Washington Gas and the new electric plant in Maryland. [Note: A Dominion spokesman later confirmed to us that the gas will come from either the Marcellus or Utica plays.] You may recall that in May 2015 Washington Gas announced a plan to invest in Marcellus wells in Greene and Clearfield counties in PA (see Washington Gas $126M Deal to Bring Marcellus Gas to DC Suburbs). That plan was later nixed by Virginia regulators (see Virginia Rejects Deal for DC-based Utility to Buy Marcellus Wells). Perhaps Washington Gas will get the last laugh after all with new quantities of Marcellus gas flowing through the Dominion Eastern Market Access project…
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PA State Senator Says Let’s Stop Fracked PA Gas Going to NY!

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PA Sen. Gene Yaw

New York Gov. Andrew Cuomo may have started a peeing match he’ll end up losing, by denying permission to build the Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). At a midstream (i.e. pipeline) conference held yesterday in Pennsylvania, one of the speakers–PA Sen. Gene Yaw from northeastern PA–said half jokingly (and half seriously) that he’s contemplating introducing a bill that would prohibit PA’s fracked gas from flowing through pipelines into New York State. Such a thing, if it ever happened, would CRUSH New York economically. It would (deservedly) bring the Empire State to its collective knees. Of course such a thing isn’t going to happen–but still, just joking about it sends a very loud message to the man-child running the Empire State: You’re on notice buddy, if you don’t allow pipelines to get built, there WILL be consequences…
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Buffalo Twp in Butler County, PA Approves XTO Compressor Station

stamp-of-approval.jpgThis is so unusual, it qualifies as news: Supervisors in Buffalo Township (Butler County), PA have approved a new compressor station to be built by Mountain Gathering–a subsidiary of XTO Energy. The reason it’s news is for how the approval process was handled. Town residents who live near where the station will be built understandably had some concerns. Those concerns were aired. Town officials visited other compressor stations built by Mountain Gathering. They had XTO officials in to answer questions. There was no bleating and blatting, no parading in front of cameras and microphones, no “die-ins” and radical protests. Just deliberative, calm, adult discussions. And at the end of it, the supervisors voted to grant permission for the compressor station to get built. Unusual!…
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One More Look at Important OH Supreme Court DMA Decision

one-more-timeIn September the Ohio Supreme Court finally ruled on a series of cases involving the state’s Dormant Mineral Act, or DMA (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). The Supremes issued full rulings in three DMA cases and stated the other cases come under those three. The biggest of the three is Corban v. Chesapeake Energy, in which the justices said the 2006 law now trumps the 1989 law. We brought you initial legal insights on the decisions handed down in our previous post. However, we recently spotted yet another law firm’s “take” on the decisions–in particular in the Corban case. The law firm is Jones Day, a big international firm. The reason their take on the Corban decision is relevant and worth reading is because they were one of the firms that argued the case before the justices. We found their article interesting and think you will too–as the DMA decisions have a huge impact on both landowners and drillers…
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Warning: EPA Attempting to Take Over FERC’s Job in Pipe Approvals

Make Him an Offer He Can't RefuseWe have, as long as we’ve been writing the MDN website, warned that the federal Environmental Protection Agency, particularly under B.H. Obama, is an out-of-control, lawless, aggressive cancer on the country. The EPA has repeatedly attempted to UNCONSTITUTIONALLY control oil and gas drilling–something only state governments have the right to regulate. The EPA has repeatedly sought to influence (i.e. control) o&g development via other means–like expanding the Clean Water Act, the Clean Air Act, and Waters of the United States (WOTUS). The latest evidence of EPA’s illegal overreach comes with EPA’s bullying of the Federal Energy Regulatory Commission (FERC). EPA is telling FERC to get its head screwed on straight with respect to an approval for two Marcellus/Utica projects–Leach Xpress and Rayne Xpress Expansion projects. EPA says FERC is ignoring mythological man-made global warming bullcrap in their review of the projects, and EPA is demanding a meeting with the top brass at FERC to bully them into submission…
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MSC Corrects/Clarifies Article Touting HB 1391 Royalty Bill

rebuttalYesterday MDN ran a story reporting that a landowner rebellion against post-production cost deductions from royalties is spreading beyond just Bradford County in northeastern Pennsylvania–to counties in southwestern PA (see PA Royalty Unrest Spreads from Bradford County to Western PA). We picked up part of an article run by the Washington, PA Observer-Reporter. The Marcellus Shale Coalition sent along an email rebuttal of that article, to “correct/clarify several issues in the article” that they believe either mischaracterize the situation, or statements that are outright wrong. Here is the MSC’s rebuttal…
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Atlantic Sunrise Pipeline – Supporters and Detractors in Southeast PA

Atlantic Sunrise Pipeline map
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MDN has written dozens of articles about Williams’ Atlantic Sunrise Pipeline project, a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. It is a much-needed pipeline to move more Marcellus gas south, to new markets (see a list of our Atlantic Sunrise articles here). What’s the current status? It’s going through a regulatory review with the Federal Energy Regulatory Commission (FERC). Back in May the project received a favorable Environmental Impact Statement from FERC (see Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC). Williams expects final FERC approval later this year or early next year, despite negative feedback from the Obama EPA, Obama Dept. of Interior, and despite ongoing frivolous lawsuits from the likes of THE Delaware Riverkeeper. Mark our words: this project will get built. Below are a couple of bits of news about Atlantic Sunrise. One is about a recent debate, held in Lancaster Monday evening, among three candidates for the PA Senate. Predictably the Democrat is against Atlantic Sunrise, and the Republican is for it. Also below is news that the usual nutty suspects, including the Allegheny Defense Project, Appalachian Mountain Advocates, the Sierra Club (among others) have filed yet another request with FERC to block the project by changing the already-issued favorable EIS…
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PA Royalty Unrest Spreads from Bradford County to Western PA

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This week Pennsylvania House Bill (HB) 1391 is back on the docket. At least, that’s what landowners in Bradford County are hoping. As we’ve covered for some time now, there is a growing split between landowners and drillers over abuses in deducting post-production costs from royalty checks. HB 1391 aims to fix that situation by guaranteeing a minimum 12.5% royalty for landowners, regardless of post-production costs. Until now most of the complaints about royalty shafting have come from landowners in Bradford County. But it seems Bradford (in northeastern PA) is not alone in their discontent. Landowners in Washington and Greene counties (western PA) are also upset with diminished royalty checks and are adding their voices to the effort pushing for passage of HB 1391. Does the bill stand a chance of passing this year?…
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NH Regulators Veto Access Northeast Pipeline Contract

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Spectra Energy first announced an unnamed pipeline project to shuttle gas from the Marcellus/Utica to New England in July 2014 (see Spectra Energy to the Rescue! New England Pipeline Expansion). In September 2014 Spectra announced they had named the project Access Northeast and added Northeast Utilities–now called Eversource Energy–as a partner (see Spectra Energy New England Pipeline Gets a Name & a Partner). In December 2014, Spectra formed an alliance with a competitor, the Iroquois Gas Transmission pipeline, to further extend the reach of the project (see Spectra Energy Alliance with Iroquois to Sell Marcellus Gas to NE). The project is pegged to cost around $3 billion and will connect four different pipeline systems: Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast. Kinder Morgan’s competing project, Northeast Energy Direct, dropped out of the running (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Spectra stayed in–but was dealt a body blow by Massachusetts (see MA Supreme Court Ruling Endangers New England Gas Pipelines). But Spectra committed to pushing forward anyway (see Spectra Spits in MA High Court’s Eye – We’ll Still Build Pipeline). Now comes another body blow: New Hampshire regulators are following MA’s lead in not allowing utility company Eversource pass along some of the costs of the pipeline to electric rate payers…
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Part of AIM Pipeline Begins to Flow; Protesters Hide in Pipe

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Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system that will carry 342 million cubic feet of natural gas per day to New England states that badly need the gas. On March 3, 2015 the Federal Energy Regulatory Commission (FERC) issued their final approval for the project, allowing it to go forward. Construction began last year and continues now. Earlier this year NY Gov. Andrew Cuomo tried to stop work on the pipeline (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). A few months later NY’s lib Dem senators got in on the act (see NY’s 2 Radical Senators Call for Halt in Building Algonquin Pipeline). We’re happy to report none of the above efforts to stop AIM succeeded. Last week FERC issued an order allowing part of the AIM project–in Putnam County, NY, and Fairfield County, CT–to power up and begin service. However, not all of the project is yet built. Four nutjob protesters criminally locked themselves inside a piece of pipeline in Verplanck (Westchester County), NY yesterday. They were there to protest “filthy fossil fuels” like natural gas…
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New Drilling Rules Take Effect in PA, Despite Objections from Industry

objectionMDN previously reported that the Pennsylvania Department of Environmental Protection (DEP) planned to publish the final regulations in the Oct. 8 Pennsylvania Bulletin (see PA’s New Article 78a Drilling Regs Go into Effect Oct 8). The Pennsylvania Independent Oil & Gas Association (PIOGA) previously sued asking the Commonwealth Court to block the new regulations based on the legal fact that key parts of Act 13, which Chapter 78a is based on, have been “enjoined” that prevent certain Chapter 78a provisions from being adopted in their current form. Essentially PIOGA (a) warned PA agencies they should not publish the new regulations, which prevents the regs from going into effect, until the invalid provisions are removed, and (b) further sued to keep the regulations stopped (see PIOGA Makes Legal Play to Stop Chapter 78a Regs from Taking Effect). PIOGA’s play to block the new regs didn’t work–at least not yet. On Friday the DEP moved forward with publishing the new rules. The new rules are in effect NOW, as of Saturday. However, yet another round of public comment will be accepted on the now-in-place rules, with a deadline of Dec. 7…
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New Study Says Shale Gas Killed King Coal, Not Obama Regulations

old-king-coalThe refrain is growing louder. In the past couple of weeks MDN editor Jim Willis has heard that Obama’s EPA regulations haven’t killed the coal industry–it was lowly natural gas that slipped in with a knife and did the dirty deed. We first heard that at the recent Benposium East event (see today’s story for Jim’s notes from that event), and also from Our Dear Leader himself, BHO (see Obama and Man-Child Leo DiCaprio Talk Global Warming at WH Event). When you start hearing the same thing from multiple sources within a short period of time, it always makes us suspect there’s collusion going on. In addition to those high-profile comments, we now get “research” from Case Western Reserve University that purports to prove the same thing: natural gas killed coal, not hyper-restrictive regulations from the Obama EPA. The research shows that the price of natural gas has been cheaper than coal for an extended period of time, and correlates to a switching from coal to natgas, ergo (the researchers say) it was really natgas after all and not Obama’s insane regulations that killed old King Coal…
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Last Stand: Big Coal Tries to Block NatGas Electric Plant in WV

last-standSince April of 2014, MDN has written about and monitored a new project to build a $615 million electrical generating plant in Marshall County, WV that will burn Marcellus Shale gas (see MDN stories about it here). Called Moundsville Power, the project received a final green light in February 2015. We also discovered the plant will burn not only methane, but ethane as well (see WV Moundsville Electric Generating Plant to Burn Methane + Ethane!). Moundsville Power was supposed to break ground in early 2016. That didn’t happen. What’s the holdup? A group supporting coal-fired electric generation called Ohio Valley Jobs Alliance filed an objection to the West Virginia Air Quality Board’s permit issued for the project (see Coal Supporters Try to Stop Moundsville, WV NatGas Electric Plant). Because of the appeal, meant to block the project, Moundsville continues to be delayed–at least for a few more months…
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Power Grab: PHMSA Issues Interim Final Rule (IFR) for PIPES Act

abuse-of-power.jpgThe Obama Administration has once again made a naked power grab–violating the Constitution in the process. On Monday the U.S. Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an Interim Final Rule (“IFR”) to implement the agency’s “expanded authority to address unsafe pipeline conditions or practices that pose an imminent hazard to life, property, or the environment.” That is, if PHMSA bureaucrats decide something is important enough, or may imminently “harm the public”–they can just dispense with all other laws and regulations which require hearings and public notices, wave the regulatory wand and make a decision. No input. No consultation. No following the law. PHMSA is doing this as a result of a new law signed by President Obama in June, called the PIPES Act, which grants the DOT Secretary godlike powers to issue emergency orders when he/she thinks there’s a danger to the public…
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PA Regulator Criticizes NY Gov. Cuomo for Pipeline Obstructionism

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Robert Powelson

Rob Powelson is a member of the Pennsylvania Public Utilities Commission (PUC). At one point, under then-Gov. Tom Corbett, Powelson was the PUC Chairman (see PA’s PUC Pro-Drilling Chairman Powelson Leads Mid-Atlantic Group). After Democrat Tom Wolf was elected as governor (tragic mistake by my PA friends), Wolf replaced Powelson with anti-drilling Gladys Brown as Chairwoman (see Anti-Drillers Cheer PA Gov Wolf’s New Appointment to Head PUC). However, Powelson remains on the PUC as a member. He’s one of the good guys–someone who supports shale energy. Powelson attended a natural gas conference in Washington, DC on Tuesday and had some sharp words of criticism for New York Gov. Andrew Cuomo on the topic of pipelines. Powelson said, in so many words, that Cuomo’s screwing around with pipeline delays (like the Constitution) threatens the reliability of the electrical grid in the entire northeast and New England. He even poked fun at Cuomo, saying it takes Andy two hours to watch 60 Minutes–a cut on Cuomo for his “overly cautious” approach to pipeline approvals. Love it!…
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