Regulation

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    List of 6 NatGas-Fired Electric Plants Coming to Michigan

    Last June DTE Energy filed paperwork in Michigan to build a new “state-of-the-art” natural gas-fired power plant in St. Clair County (see DTE Energy Files to Build New Natgas-Fired Elec Plant in Michigan). The gas-fired plant will produce 1,100 megawatts of electricity, enough to power 850,000 homes. If all goes according to plan, the new $1 billion plant will go online in 2022, helping to offset three coal-fired plants set to retire by 2023. Although environmental groups launched a campaign against the project (see Michigan Anti Fossil Fuelers Oppose DTE Gas-Fired Plant Proposal), their efforts were too little too late. Last week the Michigan Public Service Commission approved the project! In addition, we spotted an article about five more natgas-fired plants planned for Michigan (full list below). As we always point out, there is a considerable amount of Utica/Marcellus gas heading into Michigan via the Rover and NEXUS pipelines. These plants are all potential customers for our gas supplies…
    Read More “List of 6 NatGas-Fired Electric Plants Coming to Michigan”

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    Philly Dem Senator Tries to Shut Down ME2 Pipe Construction

    PA State Senator Andy Dinniman

    A Chester County, PA (Philadelphia area) Democrat State Senator by the name of Andy Dinniman (who we think looks like Tony Soprano) continues his mission to stop the Mariner East 2 (ME2) project. This is nothing new for Dinniman. He’s been agitating and lobbying and demanding and pouting for over a year in his quest to shut down ME2 (see our Dinniman stories here). According to a press release from Dinniman issued last Thursday, the Senator has filed “a formal legal complaint and a petition for interim emergency relief with the Pennsylvania Public Utility Commission (PUC) to prohibit construction of the Mariner East 2 (ME2) and Mariner East 2X (ME2X) pipelines in West Whiteland Township.” Dinniman claims Sunoco Logistics Partners (builder of ME2) has 20 days to respond to the complaint. No doubt Sunoco will respond, and there’s little doubt the PUC will not do anything about Dinniman’s request…
    Read More “Philly Dem Senator Tries to Shut Down ME2 Pipe Construction”

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    XTO Plan to Drill Wells at Former Golf Course Delayed by Zoning Bd

    In February MDN told you that XTO Energy, the shale drilling arm of Exxon Mobil, has plans to begin drilling five new shale wells in Armstrong County, PA on a former golf course (see XTO Plans 5 Shale Wells at Former Golf Course in Armstrong County). XTO presented a plan in February to build a drill pad on what used to the seventh green at the former Phoenix at Buffalo Valley Golf Course in Freeport, PA. The plan calls for drilling 4 Marcellus wells and 1 Utica well on the pad. Some 20 residents showed up for the February meeting. Not a single one spoke out against the plan. Nor did any of the Freeport officials. Last night the Freeport Zoning Board met, ostensibly to vote on XTO’s plan. However, the officials delayed the vote, claiming “there was just too much information to digest.” No date is yet set for another meeting to consider XTO’s “too much information” proposal…
    Read More “XTO Plan to Drill Wells at Former Golf Course Delayed by Zoning Bd”

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    Canadians Adopt Draconian Methane Regs, Which is Good for U.S.

    Unless they walk it back, the country of Canada may well have just shot its very large oil and gas industry in the head. How? By adopting new regulations that aim to cut methane emissions in the oil and gas sector in half by 2025. The problem is, Canada has no idea of how much methane the industry actually emits now. “Half of what?” is the question. But radical antis don’t let a little thing like actual measurements and real science get in the way. They already have an answer–they’ll simply make it up. They plan to “model” it, fantasizing about how much is emitted now, and then demand a cut of half that amount. All of which favors the U.S. oil and gas industry because (so far) we haven’t tipped over into lunatic methane regulations the way the Canadians just have. It was certainly tried under Obama (via the courts and the EPA), but under Trump, methane reduction edicts from the federal government have been walked back. Perhaps when Canada realizes it’s about to literally jump off a cliff and lose an entire industry, they’ll walk their regs back too. If not, oh well! We here in the U.S. will be more than happy to take over the markets previously served by the very dead Canadian oil and gas industry…
    Read More “Canadians Adopt Draconian Methane Regs, Which is Good for U.S.”

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    BLM Blocks Eclipse from Completing Utica Well in Wayne Natl Forest

    Melissa Hamsher, Eclipse Resources

    Something pretty cool took place yesterday in Washington, D.C. MDN friend Melissa Hamsher, vice president for Health, Safety, Environmental and Regulatory with Eclipse Resources (headquartered in State College, PA), testified before the U.S. House of Representatives’ Resources Committee. Melissa has been a speaker on several panels MDN editor Jim Willis has moderated over the years at the annual Oil & Gas Awards Industry Summit in Pittsburgh. The uncool thing is what Melissa was in D.C. to testify about, which is that the Bureau of Land Management (BLM), after auctioning off parcels in the Wayne National Forest (WNF), is now stopping Eclipse from drilling under those parcels. Eclipse had already bundled some of the BLM parcels they won at auction with neighboring private land, setting up a drill pad on private (not public) land when the BLM stepped in and stopped Eclipse’s first under-construction Utica well in WNF, claiming the BLM needs to conduct a “new environmental analysis” before drilling can continue. At every turn BLM, while pretending to act in good faith by conducting auctions of WNF land, has acted in bad faith to block Eclipse’s progress after winning those auctions. Melissa shined a bright light on the sleazy tactics used by BLM at a Congressional hearing exploring the “unfair weaponization of the National Environmental Policy Act”…
    Read More “BLM Blocks Eclipse from Completing Utica Well in Wayne Natl Forest”

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    OH Supremes Blow It, Allow Youngstown Frack Ban on May Ballot

    Although Youngstown, OH voters have voted down various versions of a proposed frack ban law six previous times, on Tuesday the Ohio Supreme Court voted 5-2 to allow a seventh such ballot measure to appear before Youngstown voters on May 8. The kicker: This seventh ballot measure is even worse–far more radical–than the previous frack ban measures voted down. The new ballot measure makes the illegal, legal (see Youngstown Antis Seek to Legalize Anarchy with 7th CELDF Petition). In addition to the usual no fracking, no pipelines pablum, this latest ballot measure has language that makes it legal to break the law. If the ballot measure passes, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the law-breaking anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. That’s the insanity the Supremes, in their “wisdom,” are allowing to go before voters in two weeks. It would be institutionalized anarchy. Of course the ballot measure doesn’t stand a chance of passing, which is good. But it does cause angst, and it causes the adults who live in Youngstown to once again have to spend time and money to defeat it. We wonder, will we be writing about the 25th ballot measure to come before voters after 24 of them have been voted down–say in five years from now? When will Ohioans say “enough” to the CELDF and their radical agitation and send them packing?…
    Read More “OH Supremes Blow It, Allow Youngstown Frack Ban on May Ballot”

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    PA PUC Asks Sunoco to Drill Holes, Pour Concrete to Firm Up ME1

    For more than a year, Marcellus/Utica ethane and propane have been flowing through the converted Mariner East 1 (ME1) pipeline safely, hauling the two natural gas liquids (NGLs) from southwest PA all the way to the Marcus Hook refinery near Philadelphia. The primary shipper using ME1 has been Range Resources, although other companies like CNX Resources use it too. However, ME1 was suddenly switched off on March 3 by order of the Pennsylvania Public Utility Commission (PUC) after a sinkhole opened up under the pipeline in Chester County, exposing some of the bare steel to the open air (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). Sunoco Logistics Partners, the owner of ME1, is building a new set of pipelines called Mariner East 2 (ME2) close to the existing ME1. Construction work in the area on ME2 led to the sinkhole that exposed ME1. The PUC shut down ME1 until further notice, requiring Sunoco to conduct a study of the area and provide the PUC with evidence to reassure them that ME1 is OK and will not leak or explode. Sunoco conducted the study, provided its results, and told the PUC it’s time to restart ME1–but the PUC is dragging its feet (see Sunoco Says ME1 Ready to Restart, but PUC is Dragging its Feet). The new news is that the PUC recently told Sunoco that before ME1 can restart, the company must first drill 10 new holes in the area of the sinkholes and pour in concrete (“grout”) in an effort to ensure ME1 doesn’t move around and break open…
    Read More “PA PUC Asks Sunoco to Drill Holes, Pour Concrete to Firm Up ME1”

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    Some PA Drillers Threaten to Spoil it for All via Royalty Shenanigans

    We’ve written a number of posts over the years about the ongoing, sometimes quiet sometimes not, civil war between Pennsylvania landowners and some (not all) drillers who use inflated post-production deductions to pad their own bottom lines, leaving landowners with peanuts–sometimes with no royalties at all (see Deep Dive: PA Royalties Civil War Between Landowners & Drillers). If we can oversimplify and summarize this complex issue, landowners maintain that a 1979 PA law guarantees landowners a 12.5% royalty regardless of expenses involved in extracting the gas, and drillers say no, landowners must abide by the contracts they’ve signed and if those contracts allow post-production costs to be deducted before calculating a royalty, the rate may go lower than 12.5%–sometimes to zero and below. PA landowners have, for the past six plus years, lobbied for legislation to clarify and protect a 12.5% minimum royalty. Today we have a guest post from the landowner point-of-view. Thad Stevens is a Gaines, PA resident and real estate developer. Thad has negotiated more than 50 oil and gas leases. He sits on the Dept. of Environmental Protection Citizen Advisory Council and is a director with the National Association of Royalty Owners PA chapter. We consider Thad a friend. He’s smart and he’s passionate about the the ongoing issue that some companies take inflated post-production deductions leaving PA landowners with little or nothing. Thad writes that some of PA’s gas drillers are displaying real arrogance in their attitudes toward the very people they need the most–landowners…
    Read More “Some PA Drillers Threaten to Spoil it for All via Royalty Shenanigans”

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    ME2 Pipe Work in Chester County Shut Down (Again) Following Leaks

    Hypersensitive: excessively or abnormally sensitive. That’s the word we would use to describe what’s happening in Chester County, PA–a suburb of Philadelphia–with regard to underground horizontal directional drilling work (HDD) being performed by Sunoco Logisitics Partners on the Mariner East 2 pipeline project. The company keeps having “inadvertent returns”–which we call leaks. Drilling mud (bentonite) used to cool the drill bit goes down the hole, and sometimes it pops back up on the surface in a different place from where it went down. Since the drilling mud is non-toxic clay and water (same stuff used to make kitty litter, toothpaste and lipstick), it’s no big deal. Unless there’s thousands of gallons of it turning up in a creek where it can smother fish and aquatic life. There’s cracks in the ground near the surface and sometimes the mud leaks out of those cracks. Sunoco must track leaks of down to less than one gallon. Antis look at the numbers and make wild claims that the pipeline has leaked “over 100 times” since drilling began. While technically true, many of those leaks are nothingburgers–not worth tracking or talking about (a few gallons at most). However, some of the leaks are big and yes, those do need talking about. Over the past week or so another four leaks have occurred in Chester County, totaling 8,000 gallons. Fortunately none of it ended up in a creek. Because of the leaks, the state Dept. of Environmental Protection (DEP) has, once again, shut down any further HDD work in Chester County…
    Read More “ME2 Pipe Work in Chester County Shut Down (Again) Following Leaks”

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    MarkWest Energy Settles EPA Air Pollution Case for $5.6 Million

    NOTE: A previous version of this post reported a total price of $3.2 million, now changed to account for the addition of an extra $2.4M for required SEPs. See below.

    Two MarkWest Energy subsidiaries, MarkWest Liberty Midstream Resources and Ohio Gathering Co., have been forced into signing a settlement of claims brought by the U.S. Dept. of Justice, Environmental Protection Agency, and the Pennsylvania Dept. of Environmental Protection over charges of releasing too much air pollution from facilities they operate throughout eastern Ohio and western Pennsylvania in the Utica and Marcellus shale. The agreement signed yesterday by MarkWest calls for the company to spend $2.6 million to install and operate new technologies to minimize VOC (volatile organic compounds) emissions at their facilities–19 major, standalone facilities and 273 smaller facilities. The company will also implement three supplemental environmental projects (SEPs) for an additional $2.4 million. In addition, MarkWest will pay the government a $610,000 fine (i.e. shakedown). Total cost to get the government of out their hair: over $5.6 million. The government claimed MarkWest had not applied for nor complied with necessary permits. But the real disaster, the thing that sent government bureaucrats into fits, is that MarkWest failed to file proper paperwork required under the Clean Air Act. However, the settlement didn’t all go the government’s way. In agreeing to the settlement, MarkWest “expressly denies and does not admit any liability to the United States or PADEP arising out of the conduct, transactions or occurrences alleged in the complaint,” which means antis can’t file frivolous lawsuits against MarkWest over air pollution…
    Read More “MarkWest Energy Settles EPA Air Pollution Case for $5.6 Million”

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    NJ Town Ready to Approve Meadowlands Marcellus-Fired Power Plant

    MDN reported two weeks ago that a subsidiary of Japanese conglomerate Mitsubishi wants to build a huge, new $1.5 billion natural gas-fired electric generating plant in the Meadowlands (New Jersey), just outside of New York City (see Marcellus Electric Plant Proposed for Meadowlands to Power NYC). The North Bergen Liberty Generating Project, at 1,200 megawatts, will help replace some of the electricity lost when the Indian Point Nuclear plant located in New York along the Hudson River closes down in 2021. We suspect that since the mighty Transco pipeline, which flows mostly Marcellus molecules in the northeast, will feed the Meadowlands project, this plant will become an important new market for PA Marcellus production. Of course the plant is being opposed by radicals in the nutty Sierra Club and other Big Green groups who despise all fossil fuels and demand that you and I end our use of fossil fuels to make them feel better about themselves. Fortunately the town where the plant will be located, North Bergen, has rational adults leading it. North Bergen officials are jazzed about the plant and by all indications will soon vote to approve it…
    Read More “NJ Town Ready to Approve Meadowlands Marcellus-Fired Power Plant”

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    Cuomo-Corrupted DEC Denies Permit for Williams NESE Pipe Project

    A new fight is shaping up in the (crumbling) Empire State. Once again Andrew Cuomo, at the prompting of Big Green groups (corrupted by their big donations to his campaign war chest) has instructed his lackeys who run the Dept. of Environment Conservation (DEC) to reject a modest pipeline expansion proposal by Williams’ Transco Pipeline subsidiary. The project, which we’ve previously written about and are actively promoting, is called the Northeast Supply Enhancement (NESE) project (see Time to Support Transco’s Northeast Supply Enhancement Project). The project is meant to increase pipeline capacity and flows heading into northeastern markets. Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Long Island, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. In a pattern we’ve seen before, the DEC claims, falsely, that an application for a state water crossing permit is “incomplete.” The DEC, like Lucy with her football in the old Charlie Brown cartoons, offers the promise that “if only” the pipeline company will submit a “complete” application THEN they will approve it. But just like Lucy with the football, when the company gets close, the DEC pulls it away yet again. Fool me once… The DEC used this same tactic to defeat the Constitution Pipeline project. It sure feels to us like “here we go again”…
    Read More “Cuomo-Corrupted DEC Denies Permit for Williams NESE Pipe Project”

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    Will New WV Exec Order Speed Up Gas-Fired Power Plant Projects?

    WV Gov. Jim Justice

    Yesterday West Virginia Gov. Jim Justice issued a new Executive Order (EO)–the third of his tenure thus far. The new EO cuts through regulatory red tape and instructs all WV governmental departments that issue permits to prioritize “permits for projects of critical economic concern.” That would include permits for Marcellus/Utica Shale projects. The EO requires agencies to issue written reports to the permit applicant, the executive director of the state Development Office, and to the Governor, explaining why they haven’t gotten off their rear-ends and acted on a given critical permit. As we read about this interesting development, it immediately struck us that we hope the EO also affects the permitting process for new natural gas-fired electric plants. Last September WV Secretary of Commerce, Woody Thrasher, admitted publicly that his beloved state is unfriendly to new natgas-fired electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). In a speech before state legislators, Thrasher said while Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, WV has built NONE. Zero. Nada. Even though perhaps a dozen such projects have been proposed. The first sliver of light in that respect came in February of this year when finally the very first such project in WV was approved by the Public Service Commission (see Brooke County WV Power Plant Wins State Approval). So when we read about the new EO signed by Justice, our thoughts didn’t jump to permits for shale wells, our thoughts turned to permits stalled for new electric power plant projects–which use Marcellus/Utica shale gas…
    Read More “Will New WV Exec Order Speed Up Gas-Fired Power Plant Projects?”

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    FERC Launches Review of Its Process to Approve NatGas Pipelines

    Government agencies, like the Federal Energy Regulatory Commission (FERC), share many of the same characteristics with business entities. For example, each has its own standard operating procedures (SOPs)–the rules that govern how that organization operates. In 1999 FERC adopted SOPs for how it reviews and decides on which pipeline projects it will approve, or not approve (called “Certification of New Interstate Natural Gas Pipeline Facilities – Statement of Policy”). Since 1999 FERC has operated pretty much the same way, taking into consideration certain factors, discounting or ignoring other factors, when approving pipeline projects. It’s time to update FERC’s SOPs. Last week FERC launched a review of its policies in reviewing pipeline projects and has invited the public to provide comments. Anti fossil fuel nutters have been the first in line, hoping to get FERC to adopt policies so strict no pipelines will ever again be approved. Antis have for years lied about FERC’s role in reviewing pipelines, calling the agency a “rubber stamp” approving 99% of the pipeline projects submitted. What antis don’t tell you is that FERC has provided negative feedback for many (most?) pipeline projects, causing the builder to either change the project plan or abandon it altogether. Under current SOPs pipelines either get built “the right way” according to FERC’s strict standards, or the project is withdrawn with no need to be rejected (hence the high “approval” rate). Here’s more background and context for what FERC may be looking to change about the way it approves pipeline projects…
    Read More “FERC Launches Review of Its Process to Approve NatGas Pipelines”

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    New York Frack Ban a Result of Russian Collusion? Yes!

    A blockbuster article appearing in the Heritage Foundation’s publication The Signal connects the dots to show how a Russian-funded and backed front group called the Sea Change Foundation funneled (money laundered) millions of dollars of Russian money to Big Green groups, including the Natural Resources Defense Council and the Sierra Club, and then how those groups used that funding to pressure Gov. Andrew Cuomo into banning fracking in the Empire State. It is a case of either knowing, or unknowing, collusion with Russia to shut down the shale industry in MDN’s beloved home state. And yet mainstream media actively blocks any reporting of this story. It is complicated and tough to show enough evidence to take to a prosecutor or judge, but when has that ever stopped mainstream/liberal media? The biased press has hounded Trump mercilessly for two years over collusion with Russia–something that never happened. And yet we now have a story about money laundering in Bermuda and a trail that shows Russian money influencing a frack ban in New York–and it’s silence. Crickets. The press is curiously uncurious about a connection between Russia and Cuomo and the frack ban. Why is that?…
    Read More “New York Frack Ban a Result of Russian Collusion? Yes!”

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    Rover Pipeline Still Waiting on FERC to Start Up Michigan Segment

    Last Friday, Energy Transfer Partners asked the Federal Energy Regulatory Commission (FERC) for permission to start up service along another major chunk of it’s massive Rover Pipeline (see Rover Pipe Asks FERC for OK to Open New Segments in OH, MI). ET wants to begin service along a 100-mile segment of Rover in northwest Ohio and in Michigan. ET also asked for permission to start up a segment of Mainline B in Crawford and Wayne counties (OH). The 100-mile segment through Michigan, called the Market segment, completes the pipeline, connecting to the Vector Pipeline in Livingston County, Michigan, which will allow Utica/Marcellus gas to flow all the way to the Dawn Hub in Ontario, Canada via Vector. In last Friday’s request, ET asked FERC to hurry it up because customers are desperate (our words) to get their Utica/Marcellus gas to market. ET requested a starting date no later than April 25–next Wednesday. Unfortunately there’s been no word, as of today, from FERC. The silence is deafening…
    Read More “Rover Pipeline Still Waiting on FERC to Start Up Michigan Segment”