Regulation

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    M-U Gas Now Travels to Dawn Hub in Canada via Rover Pipeline

    Click map for larger version

    Last Thursday, May 24, Energy Transfer Partners requested (frankly, begged) the Federal Energy Regulatory Commission (FERC) to approve final startup for the rest of Rover Pipeline not yet flowing–by June 1st. ET has contracts to honor and they promised shippers the full pipeline would be up and running by June 1st. ET requested permission to start up the “Majorsville Lateral, Supply Connector Line B, and Mainline B between CS1 and CS2 and between CS3 and the terminus,” along with a request to begin flowing on the “Burgettstown Lateral.” Note that some of the project has two pipelines, side by side (the Mainline and Supply Connector). ET asked that the second pipes in both cases be allowed to start up, along with the Majorsville and Burgettstown Laterals (see the map). ET got some of what it wanted–everything but permission to start up the laterals–yesterday from FERC. With the startup of Mainline B and Supply Connector B, ET says the Rover Pipeline project is now capable of flowing the full 3.25 billion cubic feet per day of natgas all the way to the Dawn Hub in Ontario, Canada. The only “problem” remaining is to find enough gas to flow the full 3.25 Bcf/d. They won’t be flowing the full 3.25 Bcf/d until all of the laterals are brought online…
    Read More “M-U Gas Now Travels to Dawn Hub in Canada via Rover Pipeline”

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    Big Green Sues to Stop DTE Energy’s MI Gas-Fired Electric Plant

    Click image for larger version

    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 hurdle, perhaps THE major hurdle, is an approval by Michigan utility regulators. That happened in April. Right on cue the far-left Sierra Club, Natural Resources Defense Council (NRDC), and Earthjustice, all of which seem to have unending sources of cash to file lawsuits, have together filed an appeal with the Michigan Court of Appeals to reverse the Michigan Public Service Commission (MPSC) decision to approve the project…
    Read More “Big Green Sues to Stop DTE Energy’s MI Gas-Fired Electric Plant”

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    PA DEP Hellbent to Ram Through 250% Hike in Shale Permit Fee

    Pennsylvania Gov. Tom Wolf’s Dept. of Environmental Protection (DEP), the agency charged with overseeing oil and gas drilling in the state, “blindsided” the shale industry in February with a proposal to hike the fee required when submitting an application to drill a new shale well (see PA DEP Plans to Raise Marcellus Well Permit Fee by 250%). The current fee is $5,000. The proposed new fee is $12,500–or 2.5 times (250%) higher. We understand…the DEP has fewer people working there than it once did and needs to hire more help. However, the DEP wants to slap this insanely high fee on shale drillers to (in part) cover the expenses associated with non-shale activities! According to the Pittsburgh Post-Gazette, the shale permit fees will, “fund the broad scope of the [DEP] office’s operations, including its oversight of traditional [i.e. conventional] oil and gas wells, gas storage wells, abandoned wells and earthmoving activities.” How is it, in any sense, fair to hike the fees of shale drillers so DEP agents can better keep an eye on non-shale wells? The DEP plans to steamroller this increase through. Last week the DEP’s own Environmental Quality Board approved the increase. The next step is to publish a notice about the increase in the Pennsylvania Bulletin. That will trigger a 30-day public comment period. However, don’t look for the fee increase to happen right away. It appears DEP thinks they’ll have a royal fight on their hands (which they will), because they said the fee increase won’t happen until 2019 or maybe even 2020…
    Read More “PA DEP Hellbent to Ram Through 250% Hike in Shale Permit Fee”

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    FERC Defends Atlantic Bridge Pipe Approval in DC Circuit Court

    In January 2017 the Federal Energy Regulatory Commission (FERC) granted final approval for the Atlantic Bridge expansion project (see FERC Approves Atlantic Bridge Project for New England/Canada). The Spectra Energy/Enbridge project beefs up capacity along the Algonquin Pipeline, along with more capacity for Spectra Energy’s Maritimes & Northeast Pipeline, to carry more Marcellus/Utica gas into New England and (eventually) all the way to Nova Scotia, Canada. Much of the project is now done–except in Massachusetts where a critical compressor station planned for Weymouth is stalled (see Massachusetts Blocking Atlantic Bridge Pipeline from Completion). Weymouth itself along with a smattering of radical environmentalist groups filed a lawsuit against FERC, claiming FERC did a “shoddy environmental review” before approving the project, arguing FERC’s approval should be overturned by the court. On Tuesday FERC fired back asking the D.C. Circuit Court of Appeals to toss the frivolous lawsuit and let them get on with finishing this critical project…
    Read More “FERC Defends Atlantic Bridge Pipe Approval in DC Circuit Court”

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    When Neighbors Go Bad: NY Forcing New England into Blackouts

    Last winter, from Dec. 26 to Jan. 9, the northeast and New England experienced an extreme cold snap. New England essentially ran out of natural gas needed to feed electric generating plants. The entire region came razor close to succumbing to rolling blackouts. The only thing that prevented the blackouts was the restart of 1960s oil-burning electric plants. During that two week period, New England burned through 2 million barrels of oil to keep the lights on. Scary. Although a number of circumstances conspired to produce this “perfect storm” that almost tripped over into blackouts, there is one main, towering, primary reason why it happened: lack of natural gas pipelines. And there is one main, towering, primary reason why there aren’t more pipelines to flow more natgas into New England: New York Gov. Andrew Cuomo. Andy has admitted, on camera, that his policy is to block any/every/all new natural gas pipelines (see NY Gov. Cuomo Says He’ll Block All New Gas-Fired Elec Plants). It is breathtaking hubris and arrogance. As we’ve pointed out, keep an eye on what’s happening in Canada with the Trans Mountain Pipeline project–where one province (British Columbia) refuses to allow a pipeline from a neighboring oil-producing province (Alberta) to cross through. It’s turned into a nasty civil war, complete with everything but bullets flying. The whole mess is enough to make Kinder Morgan, owner of the Trans Mountain system, sell it to the Canadian government (see Kinder Morgan Says No Thx to Canadian Civil War, Selling Pipeline). Sooner or later Maine, Massachusetts, New Hampshire, Vermont (on the demand side) and Pennsylvania (on the supply side) are going to take aim at New York for blocking important interstate pipeline projects like the Constitution and Northern Access. Retribution is coming, you can bank on it…
    Read More “When Neighbors Go Bad: NY Forcing New England into Blackouts”

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    Towns Compete in PA DEP Hunger Games to Grab $12.6M of ME2 Cash

    Que the music with dramatic drums, cymbals and trumpets. Camera A, zoom in on Secretary McDonnell. The whole state is watching. It’s time for the Pennsylvania Dept. of Environmental Protection (DEP) Hunger Games to begin! 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 will be used to “fix” those problems, right? Wrong. Sunoco had 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. In April the DEP announced a new program to distribute the $12.6 million of fine money (see PA DEP Hunger Games Competition to Distribute $12.6M in ME2 Money). In Hunger Games tradition, the DEP is conducting 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. The contestants have 45 days, from May 7 to June 20, to make a grab for the cash (i.e. submit a grant application). Here’s how one town in Lebanon County is preparing what they hope is a winning entry–their chance to grab some of ME2’s money…
    Read More “Towns Compete in PA DEP Hunger Games to Grab $12.6M of ME2 Cash”

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    WV DEP Holds Hearing on Proposed Injection Well in Upshur Co.

    Mountain V Oil and Gas owns a Marcellus Shale well drilled in 2014 in Upshur County, WV that was a bust. You don’t often hear about Marcellus wells that don’t produce. Because their Marcellus well is a non-producer, Mountain V wants to convert it into a wastewater injection well. The neighbors are not happy about it. The WV Dept. of Environmental Protection held a public hearing last week about the proposal. Twelve local residents spoke at the hearing–every one of them against the project. No one spoke in favor. Is that really a surprise? The comments made at the hearing referred to the potential for earthquakes and pollution of the water table. Here’s what the good (but misinformed) residents of Upshur don’t understand about injection wells: (1) There are hundreds of thousands of them across the country, and have been for decades. (2) The wastewater (brine) going down the proposed injection well first came up from the same deep sources–we’re just putting it back where it came from. (3) If the well is properly cased, and rest assured these wells are heavily regulated and regularly checked, there is no way for the wastewater to seep back up to the surface. The water was down there for millennia and didn’t make its way to the surface, so why would it now? (4) Earthquakes can happen, but only when massive amounts of fluids are injected into an existing fault, or crack, in the rock layers. Earthquakes from injection wells, at least in the northeast, are as rare as hen’s teeth. Look, in all honesty, we wouldn’t be overly thrilled with an injection well locating near us either. However, if you’re going to object, as a first step you need to get your facts straight. Here’s more about last week’s hearing and the lack of facts (and wild statements) that circulated at that meeting…
    Read More “WV DEP Holds Hearing on Proposed Injection Well in Upshur Co.”

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    PA House Bill to Neuter SRBC, DRBC Makes It to First Base

    As we reported in April, a Pennsylvania House of Representatives member, Dan Moul (Republican from Gettysburg), introduced a bill, House Bill (HB) 2222, that would replace the Delaware River Basin Commission (DRBC) and Susquehanna River Basin Commission (SRBC) authority to regulate groundwater by vesting that authority solely in the hands of the state Dept. of Environmental Protection (see PA House Bill Would Neuter SRBC, DRBC Regulation of Ground Water). Moul’s ire is particularly focused on the SRBC and how the organization has interfered with (and charged a lot of money to) big water users, like farmers, in Moul’s district. It is about perceived abuses by the SRBC. That appears to be the bee in Moul’s bonnet. So he’s taking aim at removing the guts of both SRBC and DRBC and placing their power in the hands of the PA DEP, which presumably Moul thinks would be more amenable to the legislature with regard to water policies. While the DRBC is without question a rogue organization that needs reigning in, our impression of the SRBC has been, on balance, positive. SRBC doesn’t try to regulate fracking the way DRBC is attempting to do. At any rate, the point of this post is that we noticed Moul’s bill actually has some traction and has been assigned out to the House State Government Committee for consideration. A bill must first go to a committee and be reported out before it can go to the floor for a full vote by all members. This is step #1, or using a baseball metaphor, the bill made it to first base…
    Read More “PA House Bill to Neuter SRBC, DRBC Makes It to First Base”

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    Sunoco Appealing ME1 Shutdown to Full PUC to Overturn Lib Judge

    As MDN reported last Friday, fossil fuel opponents finally located a liberal judge that they could persuade to abuse her judicial power to shut down not only construction on the 98% complete Mariner East 2 (ME2) pipeline project, but also shut down Mariner East 1 (ME1), a pipeline that has been working with no issues or problems for over a year (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). It is an outrage that a single judge can inflict such economic damage. Sunoco responded by saying they are pursuing “all legal remedies to overturn this Order, including our right to request PUC review of the Order, which will be filed within the next seven days.” If/when Sunoco appeals to the Public Utility Commission (PUC), the full commission can and likely will meet right away, in a non-public hearing, and could restore ME1’s right to flow NGLs immediately, overruling the judge’s overtly political order. It could happen as fast as this week, although it’s more likely to happen next week. In the meantime, every day ME1 is down, great economic harm comes to companies like Sunoco and their customers that use ME1, primarily Range Resources…
    Read More “Sunoco Appealing ME1 Shutdown to Full PUC to Overturn Lib Judge”

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    EPA Rejects Connecticut Request to Shut Down Pa. Power Plant

    Brunner Island Power Plant

    Brunner Island Power Plant is located in York County, PA, straddling Lancaster County. It is a huge, 1,490 megawatt coal-fired electric generating plant, and has been the target of environmentalists for years. In February 2017, MDN told you that the new owner of the plant, Talen Energy, invested $100 million to retrofit the plant so it can, at least part of the time, burn Marcellus Shale gas (see York County, PA Electric Plant Begins Using NatGas as Fuel). Talen said it “plans to burn little or no coal until 2019 as part of a ‘site evaluation.’” Meaning almost all (perhaps all) of the fuel powering the plant at this point is Marcellus Shale gas. Which is why we’re interested in the plant and what happens to it. However, it appears they still burn at least some coal from time to time. In February Talen signed an agreement to settle a lawsuit brought by the odious Sierra Club (see York, PA Electric Plant to Drop Coal, Burn Only Marcellus Gas). The terms of the settlement say Talen will burn only Marcellus gas at Burnner Island during “peak ozone season”–from May 1 through Sept. 30–starting in 2023. Talen will phase out coal completely by 2028. But all of that isn’t good enough for the state of Connecticut, which asked the federal EPA to shut down Brunner Island, permanently, claiming “computer models” show the plant is causing smog in CT. The EPA told CT to stuff it…
    Read More “EPA Rejects Connecticut Request to Shut Down Pa. Power Plant”

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    Army Corps Engineers Suspends MVP Permit for River Crossings

    The radical Sierra Club is claiming a victory in temporarily stopping construction work of the Mountain Valley Pipeline (MVP) at four river crossings in West Virginia. On Tuesday the Sierra Club and a mishmash of other radicalized groups filed a motion asking the Fourth District U.S. Circuit Court of Appeals to suspend a permit issued by the U.S. Army Corps of Engineers that allows MVP to construct the pipeline across streams and rivers in the Mountain State. The Clubbers’ tortured logic is this: When construction of the pipeline across a river, the stated standard is that construction can take no longer than 72 hours. MVP says it will need longer when constructing the pipeline across four rivers–Elk, Gauley, Greenbrier and Meadow. Therefore (say the Clubbers), MVP is in violation of the general permit issued by the Corps and that means ALL (not just those four rivers) construction should be stopped, immediately. The Fourth Circuit has not yet rendered a decision, however, the Corps itself said they had reviewed the standards and have (for now) rescinded the permit as it applies ONLY to those four rivers, NOT to any locations. So it’s a partial, and temporary, victory for the Clubbers…
    Read More “Army Corps Engineers Suspends MVP Permit for River Crossings”

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    Clearfield County Still Looking for Way to Stop Injection Well

    It’s been seven long years since Windfall Oil and Gas first floated a plan to drill a shale wastewater injection well near Dubois, in Brady Township (Clearfield County), PA. After all that time, the PA Dept. of Environmental Protection (DEP) finally approved the project in March of this year (see PA DEP Approves Wastewater Injection Well in Clearfield Count). Residents who live near the proposed injection well have opposed the plan from the beginning. The Clearfield County Board of Commissioners is also opposed. In April, several residents filed an appeal of the DEP decision to approve the project to the Environmental Hearing Board, a special court set up to hear appeals of DEP decisions (see Clearfield County, PA Residents to Appeal Injection Well Approval). The appeal may take up to two years. In the meantime, the well is likely to get built anyway. Recognizing the well is coming, Clearfield Commissioners held a public hearing yesterday to strategize how they might still block the project, and barring that, how they will live with it if the project becomes reality…
    Read More “Clearfield County Still Looking for Way to Stop Injection Well”

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    PA Senate Passes Bill Making Pipeline Trespass a Felony

    It’s about time! One of the favorite tactics of antis to fall back on when they don’t win in court is to simply take the law into their own hands (i.e. anarchy). If the courts or a regulatory body (like FERC, or the PA DEP) refuse to stop a critical energy infrastructure project, like a pipeline, antis take it upon themselves to trespass, illegally, in an attempt to block work on the project. They call it “free speech.” It’s nothing of the sort. To trespass is, by definition, breaking the law. Antis know this. However, such a violation of the law is currently only a misdemeanor–a lessor penalty. The PA Senate has just approved a bill that would make infrastructure trespass for pipelines and other key energy infrastructure a felony, giving antis more incentive to behave themselves. Most Republican Senators (except a few Philly RINOs) voted for the bill. Most Democrat Senators (who prefer to be lawless), voted against it. We can only hope the bill gets adopted–it now goes to the House–although with Wolf as governor, we’re not confident it will get signed into law…
    Read More “PA Senate Passes Bill Making Pipeline Trespass a Felony”

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    Only 10 Miles of Atlantic Coast Pipeline Affected by Court Ruling

    Last week MDN told you that the U.S. Fourth Circuit Court of Appeals had invalidated (vacated) a permit issued by the U.S. Fish and Wildlife Service that allows Dominion Energy’s Atlantic Coast Pipeline (ACP) to accidentally kill a few bats and bumble bees (classified as endangered) as it builds the massive $6.5 billion, 600-mile project from West Virginia to North Carolina (see U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe). The Sierra Club and several other radical, far-left groups were behind the court case that led to the decision. However, as it turns out, the decision doesn’t really hurt the project all that much. The vacated permit isn’t so “key” after all. Of the 600 or so miles of pipeline getting built, the vacated permit from Fish and Wildlife only affects about 10 miles of pipeline. A nothingburger. Dominion continues to build ACP and the 10 miles of affected construction will get done after Fish and Wildlife redoes the paperwork to the court’s liking. Antis are furious (as they always are), claiming the court ruling shuts down all construction. Not so. Construction continues, despite antis’ moaning and groaning…
    Read More “Only 10 Miles of Atlantic Coast Pipeline Affected by Court Ruling”

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    New Yorkers Pay 44% More for Electric than Neighboring States

    On average, New York residents pay 44% more for electricity than neighboring states, like Pennsylvania. In January of this year, New Yorkers (and NY utility companies) were briefly forced to pay a record high of $140.25 per thousand cubic feet (Mcf) for natural gas, as opposed to what everyone else was paying (an average of $3.08/Mcf)–which is 46 times as much! Both stats are rooted in the same issue: NY pays WAY MORE for energy than it has to, because Andrew Cuomo is blocking natural gas pipelines into the state from PA. So says a new report titled “Pipelines and their Benefits to New York” (full copy below). The report, published by the Consumer Energy Alliance, examines the benefits of pipelines to New York, highlighting the need for affordable energy supplies to keep the daily lives of families and businesses across New York moving. Without those pipelines, we’re toast. You can’t build windmills and solar farms fast enough to meet the growing demand for electricity–and natgas. Cuomo’s dysfunctional energy policies are blocking all New Yorkers, upstate and downstate, from living even moderately prosperous lives…
    Read More “New Yorkers Pay 44% More for Electric than Neighboring States”

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    Crestwood Testing Proposed LPG Storage Site @ Seneca Lake for Leaks

    Lately we’ve wondered what’s been going on in the years-long struggle by Crestwood to create an LPG (liquefied petroleum gas, or propane) storage facility in a depleted salt cavern along the shoreline of Seneca Lake in the Finger Lakes region of Upstate New York. Last December we brought you the news that Crestwood had won a victory when a chief administrative law judge, part of the state Dept. of Environmental Conservation (DEC), ruled against antis who are demanding ongoing, never-ending hearings about the project–a transparent tactic to continue the years-long delay in perpetuity (see Crestwood Scores Big Victory in Seneca Lake LPG Storage Project). The judge said the DEC has all the evidence it needs to make a decision. Of course, the decision will get made by a radical anti who heads up the DEC–Basil Seggos (part of the National Resources Defense Council cabal that opposes all fossil fuel projects). So the project still has miles to go before it becomes reality. But now, a new setback, not that the project hasn’t been “setback” from the beginning by radicals. This time the setback comes from within. An attorney representing the project sent a letter to the DEC on May 17 asking them to delay (?!) a decision while Crestwood runs more tests on well pressure to “determine its suitability as a gas storage unit.” That is, the depleted salt cavern may leak. Radicalized antis have pounced, demanding the DEC cancel the project forthwith–even before the test results are in…
    Read More “Crestwood Testing Proposed LPG Storage Site @ Seneca Lake for Leaks”