Regulation

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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…
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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…
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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…
    Read More “Big Green Opposes Bill to Relax Regs for PA Conventional Drillers”

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    5 Bills to Fix PA DEP to Get Full House Debate (Vote?) Next Week

    In March the Pennsylvania House State Government Committee debated and voted to approve a slate of five bills aimed at fixing not only the slowmo way the state Dept. of Environmental Protection (DEP) approves shale permits, but also roll back some of the egregious regulatory overreach that exists in PA (see PA House Committee Approves 5 “Fix DEP” Bills – What’s Next?). The vote to approve the bills was along party lines, with zero liberal Democrats voting in favor of fixing the DEP. In a move that has alarmed Big Green and its supporters, all five bills will now come to the full floor of the House, next week, for discussion and possibly for a vote. What happens if the full House votes to approve these bills?…
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    Busybody Brigade to Help Va. DEQ “Monitor” MVP Pipe Work

    As Mountain Valley Pipeline (MVP) begins construction and launches a plan to expand their pipeline another 70 miles (see today’s lead story), the Virginia Dept. of Environmental Quality (DEQ) says it is eager to work with radical antis to monitor work that will be done by MVP in the Old Dominion. MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–and perhaps beyond into North Carolina (see Mountain Valley Pipeline Launches Plan to Expand 70 Miles into NC). MVP is being built by EQT Midstream, NextEra Energy and several other partners. It has been hassled by protesters and sued by a cadre of Big Green groups–all with no result. The pipeline is currently under construction. Since there’s no stopping it, antis intend to launch a host of volunteer “monitors” to rat out pipeline workers that do anything from drop a candy wrapper on the ground to drive 2 miles an hour over a locally posted speed limit. In other words, a busybody brigade. To which we say: Go ahead–knock yourselves out. MVP has nothing to hide. If you want to waste your time, it’s yours to waste. The DEQ, under Democrat Gov. Ralph Northam, is only too happy to work with the busybody brigade to further hassle MVP…
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    Big Green Begs NY DEC to Revoke Orange Co. Power Plant Permits

    As the Competitive Power Ventures (CPV) $900 million Valley Energy Center natural gas-fired electric generating plant in Orange County, NY gets ready to begin service THIS MONTH, antis, including Big Green group Riverkeeper, are desperate to stop it from entering service. Since they couldn’t win any lawsuits to stop it, and since they couldn’t convince the federal government (FERC) to stop it, Riverkeeper and some politicians in Riverkeeper’s back pocket (via campaign contributions) have turned their attention to the Andrew Cuomo-corrupted Dept. of Environmental Conservation (DEC), hoping they can convince the corrupt DEC to revoke the permits issued for the plant. On what basis does Riverkeeper and their colluding politicians claim the permits should be revoked? On the basis that a CPV lobbyist paid money to Cuomo’s closest confidante and aide as a bribe to get the project approved. There’s no evidence that the project got approved because of the bribe, but the stench is certainly there, and hey, if corrupt bribes got it approved, maybe corrupt politicians colluding with Big Green can get it unapproved, right?…
    Read More “Big Green Begs NY DEC to Revoke Orange Co. Power Plant Permits”

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    Columbia Asks FERC to Approve OH/WV Buckeye XPress Pipe Project

    Buckeye XPress Pipeline map – click for larger version

    In January 2017, TransCanada’s Columbia Pipeline subsidiary launched an open season for the Buckeye XPress (BXP) pipeline project (see Columbia Pipeline Launches Open Season for New M-U Project). BXP will expand service along the Columbia Gas Transmission pipeline from Ohio (and PA and WV) to send even more Marcellus/Utica gas to the Gulf via the interconnection at Leach, Kentucky. Columbia launched a non-binding open season to gauge interest in the project, which will use looping and beefed up compressor stations to increase capacity another 700 million cubic feet (MMcf) per day along the existing pipeline Columbia pipeline system. The open season (time when shippers express interest and sign contracts) was a success. But these things take time. On March 26, a year and two full months after the open season, Columbia filed an application with the Federal Energy Regulatory Commission (FERC) seeking permission to build the project. The project includes building 66 miles of new pipeline to replace old pipeline in Ohio’s Vinton, Jackson, Gallia and Lawrence counties, as well as pipeline replacement in West Virginia’s Wayne County. Below is the lowdown on the BXP application…
    Read More “Columbia Asks FERC to Approve OH/WV Buckeye XPress Pipe Project”

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    Penn Twp Antis Try to Use PA ERA to Block Shale Drilling

    Last November we updated you on a lawsuit filed by a group of radical anti-fossil fuelers in Penn Township (Westmoreland County), PA (see Penn Twp Ninny Nannies File Lawsuit to Block Apex, H&H Wells). A group calling themselves Protect PT, backed with money and legal help from Big Green group PennFuture, filed a lawsuit to try and stop Apex Energy and Huntley & Huntley (H&H) from drilling wells in the township. The lawsuit finally made it to a county judge who is hearing testimony this week. One of the “expert witnesses” called by Protect PT is retired and discredited Cornell professor Tony Ingraffea, who makes a living by traveling around the country bashing fracking (see our Ingraffea stories here). The peril with this particular lawsuit is that it uses Pennsylvania’s so-called Environmental Rights Amendment (ERA), which liberal PA judges have, in recent years, breathed new life into. The argument is that fracking denies those who live near this temporary activity their “right” to enjoy Mom Nature, therefore it should be banished forever. That’s what Protect PT is attempting to pull off–a total frack ban in the Penn Township…
    Read More “Penn Twp Antis Try to Use PA ERA to Block Shale Drilling”