Regulation

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    Sauce for the Goose: NY Town Considers Moratorium…on Solar!

    In June 2014, New York’s highest court, the Court of Appeals, reaffirmed two lower court rulings that empowers townships and municipalities across the state to strip away property owners’ rights to allow drilling and other energy projects (see Shale Drilling in NY is Over – High Court Upholds Town Bans). NY’s high court ruled in the “Middlefield” and “Dryden” cases that local municipalities have the right to regulate energy development within their jurisdictions–where it can and cannot happen. As we said at the time, “In our opinion it means there will never be any meaningful shale drilling in New York. No driller in his right mind will roll the dice, lock up thousands of acres by spending millions of dollars, just to see it all disappear at the next town board election with a vote by 3 of 5 people.” But what’s sauce for the goose is now sauce for the gander. The Town of Delaware Town Board in Sullivan County, NY is seriously considering, and about to adopt, a one-year moratorium on solar farms. It seems a company has expressed serious interest in plastering ugly solar farms all over the beautiful countryside, and town regulations are not yet in place to control what may turn into out-of-control solar farm development. So Delaware plans to adopt a moratorium to slam the breaks on–for at least a year. Can anyone say poetic justice? This action by Delaware does not fit Lord Cuomo’s wishes. You see, in NY, only elitist snobs like Cuomo get to choose what kind of energy source we serfs who live under his rule can use. Natural gas is out, solar is in–because Cuomo wants it. Yet the Court of Appeals ruling from 2014 has now risen up to bite Cuomo and his thuggish Big Green cronies on their fat rear-ends. We love it!…
    Read More “Sauce for the Goose: NY Town Considers Moratorium…on Solar!”

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    Sunoco Says ME1 Ready to Restart, but PUC is Dragging its Feet

    Ethane and propane had been flowing through the converted Mariner East 1 (ME1) pipeline safely for more than year, hauling the two natural gas liquids (NGLs) from southwest PA all the way to the Marcus Hook refinery near Philadelphia. 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 has told the PUC it’s time to restart ME1. But the PUC is dragging its feet, taking its time to review Sunoco’s work, and in no particular hurry to restart ME1–even though the outage is impacting the drilling program at companies like Range Resources…
    Read More “Sunoco Says ME1 Ready to Restart, but PUC is Dragging its Feet”

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    Insane Legislation Requires PA Residents Use 100% Renewable Energy

    Right around Earth Day politicians become even nuttier than they usually are. This year is no exception. A truly breathtaking, totally insane pair of bills have just been introduced in the Pennsylvania legislature, in observance of Earth Day, that would force all Pennsylvanians to use electricity generated from 100% so-called renewable sources by the year 2050. It’s totally preposterous and lunatic–but there you have it. Actually being in your right mind is no longer a requirement for high office–at least in PA. Democrat Rep. Chris Rabb introduced the bill in the PA House, and Democrat-lite (i.e. RINO) Sen. Charles McIlhinney introduced the bill in the PA Senate. Unsurprisingly they’re both from the Philadelphia area, where living in the real world doesn’t exist. The object of the proposed law is to dump the use of all “fossil fuels” and instead rely on unreliable wind and solar to produce all electricity in the Keystone State. Do you know how much of PA’s electricity is produced by wind and solar today? A piddly 2.8%. Nuclear generation is the #1 source of electric in PA at 41%, followed by coal at 29.6% and natural gas at 25%. Do you really, in your heart of hearts, believe PA can generate 100% of its electricity from wind and solar by 2050? It’s a fantasy, totally unconnected with reality. Yet that’s all we’ll hear and read for the next few days until, blessedly, we get past so-called Earth Day…
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    Time to Support Transco’s Northeast Supply Enhancement Project

    In March the Federal Energy Regulatory Commission (FERC) issued a favorable draft environmental impact statement (DEIS) for the Williams Transco Northeast Supply Enhancement (NESE) pipeline project (see Williams Northeast Supply Enhancement Pipe Gets Favorable DEIS). The project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, 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. This project needs *your* help. Please join MDN in supporting the project by signing this online petition to FERC. A second way you can support the project is by attending and speaking at one of four regional FERC hearings, which begin next week…
    Read More “Time to Support Transco’s Northeast Supply Enhancement Project”

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    Va. Water Bd Wants More Assurances re MVP & ACP Pipeline Projects

    In October 2017, the Federal Energy Regulatory Commission (FERC) approved two important Marcellus/Utica pipeline projects–Dominion Energy’s Atlantic Coast Pipeline (ACP), and EQT Midstream’s Mountain Valley Pipeline (MVP) (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). ACP is a $6.5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. MVP is a $3.5 billion, 303-mile natural gas pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. However, as we’ve all learned the hard way, federal approval by FERC is only the first step. Individual states get a very limited say in pipeline project siting by being given the power to issue federal Clean Water Act permits for stream crossings. Some states, like New York, abuse the power and attempt to shut down federal projects. Other states, like Virginia, waffle around. Here’s the latest from Virginia. The state Dept. of Environmental Quality (DEQ) decided last year to let the federal Army Corps of Engineers handle the water permitting for the two pipelines. But then the state Water Control Board (WCB) stepped in, claiming they have authority to help regulate the construction of these two federal projects (which they don’t, but that’s a story for another day). The WCB eventually approved MVP and conditionally approved ACP. However, under extreme pressure (bullying) from Big Green proponents, the WCB is rethinking their approvals and has “cracked the door open” to review the water crossings already approved by the Army Corps of Engineers. Yeah, it’s a hot mess in Virginia…
    Read More “Va. Water Bd Wants More Assurances re MVP & ACP Pipeline Projects”

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    Michigan Anti Fossil Fuelers Oppose DTE Gas-Fired Plant Proposal

    (PRNewsfoto/DTE Energy)

    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 be retired by 2023. The process is long to approve and then build such a project, with many hoops to jump through. The first major hurdle, perhaps THE major hurdle, is an approval by Michigan utility regulators. The deadline for that approval is almost here–April 27. With the deadline looming, Big Green, with its ongoing, irrational hatred of all fossil fuels, has ramped up opposition to the project. An approval by regulators is being complicated by the fact that DTE filed two months after new energy laws went into effect, but before the Public Service Commission finalized its guidelines under those new laws, in December. Apparently there’s an issue with the application as it relates to the December guidelines–an issue that would potentially delay the project another year or more…
    Read More “Michigan Anti Fossil Fuelers Oppose DTE Gas-Fired Plant Proposal”

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    EQT Sues WV for Passing Minimum Royalty Law re Flat Rate Leases

    Earlier this year the West Virginia legislature passed Senate Bill (SB) 360, which Gov. Jim Justice subsequently signed into law (see WV Gov Justice Signs Bill to Guarantee 12.5% Minimum Royalty). SB 360 overturns a ruling by the WV Supreme Court in Leggett v. EQT Production, a case in which the Supremes (in a very unusual move) reversed their own previous decision and allowed EQT to deduct post-production expenses in an old flat rate lease. In essence, SB 360 guarantees rights owners/landowners a 12.5% minimum royalty, regardless of post-production deductions–but only in flat rate leases. A flat rate lease is a lease in which a company pays a regular (in EQT’s case, annual) payment, regardless of how much oil/gas is produced. Traditionally drillers don’t deduct post-production expenses because the payments they make aren’t all that much anyway. But then EQT began to claim deductions, prompting a lawsuit that went all the way to the Supreme Court. The legislature aimed to “fix” what they considered an error in the court’s ruling. EQT claims the new law is unconstitutional and last week filed a lawsuit (copy below) asking a judge to block implementation of the law, set to take effect on May 31…
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    PA DEP Hunger Games Competition to Distribute $12.6M in ME2 Money

    In February Sunoco Logistics Partners agreed to pay a massive (historically high) $12.6 million fine to the PA Dept. of Environmental Protection (DEP) for “permit violations related to the construction of the Mariner East 2 pipeline project” (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction). Sunoco’s ME2 construction activities caused a few erosion issues here and some drilling mud leaks there–so-called “harms” to the environment. Surely some of the massive, historically high $12.6 million fine Sunoco is paying will be used to “fix” those problems, right? Wrong. Sunoco has to pay twice–pay to clean up the problems AND pay the fine. The fine was essentially a shakedown–Sunoco had to pay it or they would not be allowed to resume construction work on ME2. Yesterday the DEP announced a new program to distribute the $12.6 million of fine money. In Hunger Games tradition, the DEP is launching a lottery for the 85 municipalities along ME2’s path, allowing those “districts” to submit begging proposals to request some of the money for programs in their district. What kind of programs? “[P]rojects that reduce or minimize pollution and protect clean water.” In other words, just about anything contestants can dream up. They have 45 days, from May 7 to June 21, to make a grab for the cash (i.e. submit a grant application)…
    Read More “PA DEP Hunger Games Competition to Distribute $12.6M in ME2 Money”

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    Duke Energy Refiles 13-Mile Cincinnati NatGas Pipeline Plan

    Duke Energy needs to replace an aging pipeline, built in the 1950s, near Cincinnati, OH–or some people in Cincy will have to go without natural gas. Duke has proposed a 13-mile, 20-inch pipeline along two potential routes. The project is called the Duke Central Corridor Extension Gas Pipeline. Both of the proposed routes are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPEs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! With just weeks before a final approval by the Ohio Power Siting Board (OPSB), Duke asked the state to push the pause button last August (see Duke Energy’s 13-Mile Cincinnati NatGas Pipeline Put on Hold). At the time, Duke said they had “potential concerns” about building the pipeline on a property close to a Superfund site in Reading, should they build it along the alternate route. Those concerns have now been addressed and the project is unpaused and moving forward once again. Duke recently refiled their application to build the new pipeline along the alternate route, with a few tweaks. The usual suspects are turning up to oppose it all over again…
    Read More “Duke Energy Refiles 13-Mile Cincinnati NatGas Pipeline Plan”

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    Sunoco Requests Change of Drilling Methods for ME2 Near Sinkholes

    Underground horizontal directional drilling (HDD) work done by Sunoco Logisitics Partners in Chester County to install the twin Mariner East 2 (ME2) pipelines has led to the development of three large sinkholes (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). The third sinkhole that developed exposed a portion of the existing Mariner East 1 pipeline, causing ME1 to be closed until further notice (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). In order for ME1 to reopen, the state Public Utility Commission has to be assured further drilling for ME2 won’t further disturb ME1. The problem is that the underground geology in that area of Chester County is known as a karst–analogous to Swiss cheese rock layers underground. Not conducive to HDD work. So Sunoco is changing gears. The company has filed a request with the Dept. of Environmental Protection (which oversees the regulation of the project) to change from using HDD to instead using a couple of alternative methods to get the pipe in the ground–including trenching. Before the DEP gives its OK, they will first hold a public hearing on April 30th in West Chester…
    Read More “Sunoco Requests Change of Drilling Methods for ME2 Near Sinkholes”

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    Mr. Bennett Goes to Washington – Former OOGA VP Joins Trump Team

    One of “our own” (from the Marcellus/Utica industry) is heading to Washington, D.C. to work for the Trump Administration, in the Dept. of Energy. Shawn Bennett, formerly Executive Vice President for the Ohio Oil and Gas Association, is heading to the swamp to become Deputy Assistant Secretary for Oil and Natural Gas. That is, Shawn will head up the office of oil and natural gas at the DOE. How cool is that?! We sincerely hope he doesn’t get infected with swamp fever and instead works hard to promote the many benefits of fossil fuels. We’re sure he’ll be a huge success! Here’s the official announcement…
    Read More “Mr. Bennett Goes to Washington – Former OOGA VP Joins Trump Team”

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    Rover Pipe Asks FERC for OK to Open New Segments in OH, MI

    Click for larger version

    On 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. 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, called the Market segment, completes the pipeline as it connects to the Vector Pipeline in Livingston County, Michigan. ET says 99% of all pipeline for Rover is now in the ground and done. Some 83% of underground horizontal direction drilling (HDD) required to install small portions of the pipeline under creeks, rivers, bridges, roads, etc. is now done. It won’t be long now until Rover is done done. Here’s the latest great news that most of the rest of the pipeline is now ready to begin service…
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    PA DEP Report – Virtually No Methane Migration from Shale Wells

    The Pennsylvania Dept. of Environmental Protection (DEP) released the results of it’s industry-leading program to monitor oil and gas wells for methane (and oil and brine) migration–that is, for anything would impact groundwater. The Mechanical Integrity Assessment Program, as it’s called, is “the most rigorous routine well integrity assessment program to protect groundwater in the United States,” requiring quarterly inspections by operators of their wells. The DEP is in the process of releasing the results of those reports for the past four years–from 2014-2017. They’ve just released results for 2014 (full copy below). What did the DEP find? “[L]ess than 1 percent of operator observations indicated the types of integrity problems, such as gas outside surface casing, that could allow gas to move beyond the well footprint.” In other words, there is virtually no methane migration happening from shale (and conventional) natural gas wells because of good well casings and regular checks. It is hard to overstate how important these findings are. The DEP’s own evidence disproves wild claims that methane is migrating from shale wells everywhere, claims made by anti-fossil fuel radicals and a colluding media (see examples from StateImpact Pennsylvania). Below is the good news that there is virtually no methane migration happening in PA from Marcellus Shale wells…
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    NatGas Groups Urge Trump to Act Against States Blocking Pipelines

    Five natural gas trade associations representing pretty much the entire natgas industry (producers, suppliers, pipelines and local gas utilities) sent a joint letter to President Trump on Tuesday asking the President to clarify the role of states in administering Clean Water Act Section 401. Specifically, the groups want the president to slap around individual states that are abusing Section 401 to block critical pipeline projects–like how the corrupt Andrew Cuomo in New York is blocking the Constitution Pipeline by withholding Section 401 approval for the project. The five groups which collectively call themselves the Natural Gas Council, say in the letter that some states abuse Section 401 “to hijack the permitting process for pipelines that transport natural gas in interstate commerce.” In other words, New York’s action not only hurts the residents of New York, it hurts the residents and producers in Pennsylvania that produce the gas, and potential customers in New England and beyond who would use the gas (i.e. interstate commerce). While Section 401 gives states a say in how federally-approved pipeline projects are managed, it does NOT give states the right to outright reject those projects. The Natural Gas Council is calling attention to this ongoing violation and wants Trump to do something about it…
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    Williams Seeks OK to Expand Transco to Move Marcellus Gas South

    The hits keep comin’ from Williams. Yesterday Williams announced it has filed a request with the Federal Energy Regulatory Commission (FERC) to expand capacity along the mighty Transco Pipeline to increase the amount of gas the pipeline can flow to the Mid-Atlantic and Southeastern U.S by 296,375 dekatherms (296 million cubic feet) per day. The Southeastern Trail expansion project (SET), as it is called, includes building 7.7 miles of 42-inch pipeline looping (pipeline laid next to existing pipeline) in Virginia, adding extra horsepower at existing compressor stations in Virginia, and making some pipe and valve modifications on other existing facilities in South Carolina, Georgia, and Louisiana to allow for bi-directional flow. The project aims to bring more gas to utilities, including PSNC Energy, South Carolina Electric & Gas, Virginia Natural Gas, the City of Buford, Ga., and the City of LaGrange, Ga. Note that Mountain Valley Pipeline recently announced they want to expand the MVP project an extra 70 miles to serve PSNC Energy (in North Carolina) too. Williams is currently working to finish up the Atlantic Sunrise project, which includes new pipeline to feed Marcellus gas from northeastern PA into the Transco mainline. Bottom line: This new Southeastern Trail expansion project will bring Marcellus gas to more customers in the Mid-Atlantic and Southeastern U.S. And that’s a good thing!…
    Read More “Williams Seeks OK to Expand Transco to Move Marcellus Gas South”

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    Big Green Opposes Bill to Relax Regs for PA Conventional Drillers

    Big Green groups are objecting to a plan to exempt Pennsylvania’s mom and pop conventional oil and gas drillers from regulations meant to apply to unconventional (shale) oil and gas drillers. The anti-drilling Environmental Defense Fund (EDF) along with the anti-drilling Pennsylvania Environmental Council (PEC) co-authored a letter to PA Senators encouraging them to vote against a bill now working its way through the Senate (and House). In March, two identical bills were introduced, one in the Senate, the other in the House, that would “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 bills are in response to coming changes proposed by leftist Gov. Tom Wolf to over-regulate conventional drillers. Apparently the bills are getting traction, otherwise Big Green wouldn’t bother wasting time on opposing them. Interestingly, Big Green did not send their letter to members of the PA House. It’s well known that while the Senate is Republican in majority, many of its so-called Republican members are RINOs–Republicans in Name Only. Senators without backbone or conviction. People susceptible to bullying by groups like EDF and PEC. Big Green is targeting those most likely to cave–easy marks. Whereas the Republicans in the House are more conservative and not as susceptible to Big Green bullying…
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