Sad News: FERC’s Rob Powelson (from PA) Resigns Effective August
Robert Powelson, a Republican member of the Federal Energy Regulatory Commission (FERC) from the great state of Pennsylvania, appointed by President Trump, announced yesterday he is resigning effective in mid-August. He’s not even been in office a full year. This is devastatingly bad news in our book, for a couple of reasons. Coming from PA and previously serving on the state Public Utility Commission, Powelson has been a champion for natural gas and the pipelines that flow it–especially Marcellus/Utica projects. He’s been a superb FERC commissioner. So why is Powelson leaving? To become president and CEO of the National Association of Water Companies. No offense to that association (which we’d never heard of before), but this is a step down. The speculation whirling around is that Powelson is leaving FERC over differences of opinion with Team Trump and their ill-advised mission to prop up coal and nuclear energy, at the expense of natural gas. Apparently Powelson has had enough and wants out. It’s not only sad he’s leaving, it could be consequential in the near-term. Why? Because the Commission will be split 2-2 Republicans and Democrats, and the Dems have shown they’ve sold out to their radical elements, willing to vote against new pipeline projects in the name of man-made global warming, contrary to policy and stated regulation (see FERC Becomes Political as Seen in Rehearing Vote on NY Project). The politics in the Dem party is toxic and radical, and has now spread to FERC. Powelson’s departure at this time is not good news for our industry. We hope Trump can get a new FERC member appointed to replace Powelson asap–but don’t hold your breath. The swamp resists change at any cost…
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Platts is reporting U.S. natural gas production hit a new, all-time high last week, mainly due to a surge in natgas production in the Texas Permian. Although Marcellus/Utica production “pulled back modestly” this past week, if you look at the entire month of June, we hit new all-time highs for production yet again. However, it wasn’t just the good news of new record production that caught our attention in the Platts update, but this statement: “Looking ahead, it’s possible that Northeast production growth could flounder this summer, thanks to continued in-service /delays on Rover Pipeline’s upstream supply laterals.” Rover is desperately trying to get FERC to grant permission to open the Majorsville and Burgettstown laterals, as we pointed out yesterday (see 
The World Gas Conference, held every three years in different locations around the globe, was held this week in Washington, D.C.–the first time back in the U.S. in 30 years. We’ve reported various stories from that event. Here’s another such story that caught our interest. Pipeline companies, specifically TransCanada and Enbridge (both based in Canada but with huge pipeline networks in the U.S.) told conference attendees that the pipeline industry needs help from Washington–from either the Federal Energy Regulatory Commission, or Congress, or both to fight back against the increasing efforts of Big Green groups opposed to fossil fuels. Fight back how? By adopting new regulations (FERC) or new laws (Congress) that favor pipeline infrastructure. Our interpretation of what they said: It’s time to stop allowing a small group of wacko radicals block energy progress in this country…
Yesterday, Dept. of Energy Secretary Rick Perry leveled a warning to Andrew Cuomo and the leaders of other states blocking natural gas pipelines: You will face a “real reckoning” of high energy costs and vulnerabilities (i.e. blackouts) because of your actions. Perry stopped short of saying Washington and the Trump Administration would use Executive Orders to unblock some of the blocked pipeline projects (which is a disappointment). But Perry alluded to that possibility when he said, “We have to have conversation as a country, is that a national security issue that outweighs the political concerns in Albany, N.Y.?” Cuomo should be concerned. We’re holding out hope that Trump will issue an Executive Order for both the Constitution Pipeline and Northern Access Pipeline projects, overruling Cuomo. It’s refreshing to see our side take the fight to the irrational radicals who oppose fossil fuel energy…
Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system designed to 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 in 2015 and, following extreme opposition from New York State over a small portion of the project, it finally went online in in 2016. New York’s radical, anti-drilling governor, Andy Cuomo, tried to stop the Algonquin using the flimsy excuse that some of the drilling for the pipeline would happen a half mile from a nuclear power plant–a plant that’s shutting down anyway (see 
Shell delivered some good news at last week’s Northeast U.S. Petrochemical conference in Pittsburgh: The Falcon ethane pipeline will get built next year (see 
Many (most?) electric generating companies in the U.S. are regulated–highly regulated. They’re guaranteed a certain, predictable level of (low) profits. But in return for guaranteed profitability, every single thing they do is monitored and authorized in triplicate, with one or another government agency reviewing anything and everything that happens. It’s the deal they’ve struck with the regulatory devil. Vectren is one such regulated utility in the great state of Indiana. Vectren operates the F. B. Culley Generating Station, a 369 megawatt (MW) coal power plant located in Warrick County, Indiana. They plan to close the coal-fired plant in 2023. In its place, they want to build a 900 MW natgas-fired plant and a 50-acre solar farm. Building the gas plant and solar farm would cost Vectren (meaning ratepayers) $940 million. The cost is passed on to ratepayers because Vectren is regulated. That’s the way it works. The bargain struck with the devil. The gas-fired plant will be cleaner than coal, more efficient, cheaper to operate, and better for the environment. We suspect Utica/Marcellus gas would help feed the plant. And yet, anti-fossil fuel wackos oppose the plan to switch to cleaner-burning natgas. Would they prefer no electricity?…
Perhaps the proposed legislation by PA Rep. Dan Moul (Republican from Gettysburg) to gut not only the DRBC (Delaware River Basin Commission) of its power to regulate groundwater, but also to gut the SRBC (Susquehanna River Basin Commission), is not so far off the mark after all (see 
Seems like a week doesn’t go by that MDN isn’t asked (by someone from Pennsylvania), “Is there any hope of building the Constitution Pipeline through New York?” Our standard response is this: The only way it gets built is (a) NY elects a new governor favorable to the industry–about a 1% chance of that happening, (b) President Trump issues an Executive Order overriding Cuomo’s blockade of Constitution (and other pipeline projects)–maybe a 10% chance of that happening, or (c) the Federal Energy Regulatory Commission (FERC) reconsiders a decision to not overrule NY’s move to block the project–maybe a 15% chance. The U.S. Supreme Court in April refused to consider the Constitution Pipeline case, closing that door (see 
At a big ceremony in 2015, none other than Rhode Island Gov. Gina Raimondo joined the CEO of Invenergy to announce the Clear River Energy Center–a 900-1,000 megawatt electric generating plant that runs on natural gas (see 
Last October MDN told you that a second Marcellus gas-fired electric generating plant is planned for Greene County, PA (see 
In 2014, the North Carolina legislature passed a law that specifically says local municipalities can’t regulate oil and gas exploration–it is the sole responsibility of the state to do so. Some municipalities thought there were loopholes they could use. Stokes and Chatham counties enacted moratoriums instead of outright bans, hoping to game the system. In order to plug the loopholes, the NC General Assembly approved a 41-page “technical corrections” bill (literally passed in the middle of the night) in September 2015 (see 
Here’s the latest strategy in THE Delaware Riverkeeper’s ongoing war against fossil fuels, and against natural gas pipelines in particular: Pressure the Delaware River Basin Commission (DRBC) to revoke a permit granted by the agency to the Mariner East 2 (ME2) pipeline project on the flimsy basis that ME2 has “violated” the conditions of the permit. Frankly, we didn’t even know the DRBC had issued a permit for ME2. After all, ME2 is a state-permitted project and does not come under federal authority. We doubt the DRBC has legal authority to issue a permit for the project–but if no one challenges them, their authority stands. ME2 probably thought it easier to just get the permit and not squabble over it. According to Big Green mouthpiece PBS StateImpact Pennsylvania, the DRBC is actually considering Riverkeeper’s request. The problem with this latest strategy by Riverkeeper is that DRBC’s executive director, Steve Tambini, is so weak, he may fold like a cheap deck of cards and actually do it. Tambini, who has been a major disappointment since taking over from the ultra-leftist Carol Collier, seems happy to take his marching orders from Riverkeeper. We have to wonder if this latest strategy will bear fruit. A scary proposition. But Riverkeeper isn’t content to try and scuttle ME2 by pressuring the weak DRBC as its only strategy. Last week the DRBC filed a “groundbreaking” lawsuit against the ME2 project in U.S. District Court for the Eastern District of Pennsylvania, meant to stop the project by court order…
The good news keeps rolling in for Mountain Valley Pipeline–a $3.5 billion, 301-mile pipeline currently under construction from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. MVP is being built to move Marcellus/Utica gas south. Following multiple lawsuits and regulatory challenges by Big Green groups, MVP is getting work done and on track to be completed this year. Just last week we told you that following delays by illegal protesters sitting in trees in the Jefferson National Forest, the Federal Energy Regulatory Commission helpfully extended tree cutting season for MVP to July 31 (see