Regulation

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    Trump Action Improves Pipeline Reviews by Federal Agencies

    President Trump presides over the signing of the agreement. Official White House Photo by Shealah Craighead.

    Eight months ago President Trump called for the government to speed up reviews and permitting of major infrastructure projects. It’s hard to drain the swamp–the entrenched bureaucracy that is Washington, D.C. resists it at every turn. But change it he has! On Monday, 12 federal agencies, including 7 cabinet-level departments of the Executive Branch, signed an agreement to better coordinate reviews and to guarantee that critical infrastructure projects can get reviewed and approved (or not approved) within a two-year period. Among those signing the agreement were the Department of Interior (DOI), the Department of Energy (DOE), the Federal Energy Regulatory Commission (FERC), the Environmental Protection Agency (EPA), and the U.S. Army Corps of Engineers. Infrastructure projects includes, prominently, pipeline projects. No more dilly dallying at one agency, and then a year later on to the next agency only to be repeated. Reviews will now be done concurrently (instead of sequentially), among other changes…
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    PA House Bill Would Neuter SRBC, DRBC Regulation of Ground Water

    Here’s one we didn’t see coming–a potential way to fix the ongoing disaster that is the Delaware River Basin Commission (DRBC) and their illegal attempt to regulate hydraulic fracturing within the Delaware River Basin under the claim they have the right to regulate anything that impacts groundwater. A Pennsylvania House of Representatives member, Dan Moul (Republican from Gettysburg), is about to introduce a bill that would replace the DRBC’s authority to regulate groundwater by vesting that authority solely in the hands of the state Dept. of Environmental Protection (DEP). The problem is, the bill appears to be targeted more at the Susquehanna River Basin Commission (SRBC) than DRBC. The bill will affect both organizations. Last time we checked, the SRBC does a fine job of regulating water withdrawals for fracking AND makes no attempt to regulate fracking, which the DRBC is attempting to do. But then, we don’t think this bill has the DRBC’s frack ban, nor fracking at all, in mind. It likely has more to do with farming and other water uses and some perceived shortcomings at the SRBC…
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    More of the Same at Final DEP Hearing for Shell Ethane Pipeline

    Click map for larger version

    For three nights in a row this week the Pennsylvania Dept. of Environmental Protection (DEP) conducted hearings for Shell’s proposed Falcon ethane pipeline–a 97-mile pipeline system with two “legs” that will feed Shell’s mighty ethane cracker plant now under construction in Monaca, PA. We brought you a report from the first session, an eyewitness account from MDN friend Charlie Schliebs (see Shell Ethane Pipeline Hearing Draws Few Supporters, Many Antis). That session was predominantly populated with antis attempting to paint nightmare scenarios if the pipeline (and cracker) gets built. Last night was the third and final session–in Sewickley. Once again we have an eyewitness account, this time from MDN friend Katie Klaber, former president of the Marcellus Shale Coalition and currently managing partner at The Klaber Group and a board member of the Federal Reserve Bank of Cleveland (Pittsburgh branch). Katie is a consummate environmental professional–someone with a lifelong career in environment compliance and someone who served on the Air Quality Technical Advisory Committee of the DEP for more than a decade. She knows a thing or two about projects like the Falcon because she’s seen a thing or two (to borrow from the Farmers Insurance commercials). When the audience realized that Katie was supporting the project (the only one of the first 18 speakers to do so), the hissing started. She and the next few speakers who supported the project were hissed by bad-behaving antis in the crowd, with some Mother F…ers thrown in by an especially outspoken attendee. Nice people, those antis…
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    DRBC: We’ll Make You Guess When We’re Going to Adopt Frack Ban

    In September, MDN told you that the obsequious members of the Delaware River Basin Commission (DRBC) had slavishly obeyed their radical environmental masters by voting to move forward with a permanent ban on fracking in the Delaware River Basin (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The final ban language/regulation was dropped like a bomb by DRBC staff on Nov. 30 (see DRBC Drops Permanent Frack Ban Bomb – Public Hearings in January). The DRBC announced they would allow public comment through Feb. 28, later extended to Mar. 30 (see DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation). The DRBC received 8,687 comments online and 227 oral comments at the hearings. So what happens now? According to an update issued yesterday, the DRBC said, “There is no set schedule for a vote by the Commissioners to adopt final rules. As always, the Commission may adopt final rules only at a duly-noticed public meeting.” All of the DRBC’s public meetings are ” duly noticed”–meaning the DRBC provides public notice ahead of time. The next public meeting to be held is May 16. Could the DRBC simply vote at that meeting to adopt these illegal ban regulations? Sure. And then again, maybe they won’t. You just don’t know. Apparently the DRBC wants to keep everyone guessing…
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    Report: The State of Natural Gas in Pennsylvania

    The Commonwealth Foundation is Pennsylvania’s premier free-market think tank. The aim of the Foundation is to “transform free-market ideas into public policies so all Pennsylvanians can flourish.” We’ve highlighted their excellent work over the years. They’ve just done it again. The Commonwealth Foundation has just published a report called “The State of Natural Gas in Pennsylvania” (full copy below). The opening begins this way: “Pennsylvania’s regulatory and tax environment is stunting job growth and deterring investment. A decade after the Marcellus Shale boom, lawmakers are still debating how to tax the industry instead of fixing the policies contributing to Pennsylvania’s increasingly uncompetitive energy market.” At the end of the report the Foundation shows a severance tax comparison of existing severance taxes in other states that PA competes against, like Ohio, West Virginia, Texas, Colorado, and Oklahoma. The chart shows that the existing impact fee (in essence a severance tax) runs around 1.1%. The severance tax in Ohio is running around 0.7%, and in West Virginia 3.5%. In places like Texas, which increasingly competes against PA with prodigious quantities of natural gas production, the severance tax is 4.2%. However, Gov. Wolf’s proposed severance tax would be 5%–the highest in the nation except for New Mexico’s 7.9% (which doesn’t compete with PA). The report shows how PA is restricting Marcellus activity with over-regulation and a high corporate income tax…
    Read More “Report: The State of Natural Gas in Pennsylvania”

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    Shell Ethane Pipeline Hearing Draws Few Supporters, Many Antis

    Click for larger version

    Last night the first of three public hearings held by the Pennsylvania Dept. of Environmental Protection for the planned Shell Falcon Ethane Pipeline project was held in Monaca (Beaver County), PA. About 100 people turned up for the hearing, which lasted an hour and a half. No signs allowed. The only people who could speak had to register first. Of the 23 who did speak, 16 of them (including out-of-town movement antis) spoke against the project, while 7 people spoke in favor. The 97-mile Falcon Ethane Pipeline system has two “legs” that will feed Shell’s mighty ethane cracker plant. Shell is not using eminent domain for any of its leases for the pipeline. Every lease is negotiated and signed with individual landowners. Antis, in large part being organized and agitated by radical groups like FracTracker Alliance, are making a concerted effort to block the pipeline, hoping they can in turn stop the multi-billion dollar cracker plant currently under construction by blocking the pipeline that feeds it…
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    WV Royalty Transparency Law Sheds New Light Beginning June

    Back in January MDN told you about West Virginia House Bill (HB) 4270, a bill that provides more transparency for landowners on their royalty statements (see WV Co-Tenancy, Royalty Transparency Bills Make Progress). The good news is that the bill passed and was signed into law by Gov. Jim Justice on March 27th. For far too long royalty statements have been loosey-goosey. Landowners (technically royalty owners) get no specifics on how much gas (or other hydrocarbons) were produced, what deductions were made, and why those deductions were made. HB 4270, which goes into effect on June 8, will fix all that. Here’s more details on what is being called the “Check Stub Bill”…
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    Offer to Relocate Families Near ME2 Sinkholes; ME1 Down Until May?

    Sinkhole in Chester County, PA

    Sunoco Logistics Partners (aka Energy Transfer Parnters) has had its challenges in constructing the twin Mariner East 2 (ME2) pipelines across Pennsylvania. In March, MDN told you that underground horizontal directional drilling (HDD) work in Chester County had led to a third sinkhole developing in that area (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). For most of its length, ME2 is being built next to the existing ME1 (Mariner East 1), a liquids pipeline originally built in 1931. The third sinkhole in Chester County exposed a portion of ME1, leading to the state Public Utility Commission “temporarily” shutting down ME1 on March 7 (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). ME1 would be, according to Sunoco, out of commission for “10 to 14 days.” Nearly a month later it’s still not running and until the state Dept. of Environmental Protection gets solid answers about the sinkholes, it won’t restart. It now looks like ME1 won’t be operational again until May. ME1’s closure has put several shippers, primarily Range Resources, in a bind (see Range, CNX Look for Alternatives to ME1 Pipe Following Shutdown). Sunoco needs to conduct geotechnical studies near the sinkholes to get answers that will allow it to resume work. So, Sunoco has offered to temporarily relocate five families living near the three sinkholes–for up to six weeks–while it conducts tests of the area…
    Read More “Offer to Relocate Families Near ME2 Sinkholes; ME1 Down Until May?”

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    PA Supreme Court Axes DEP $4.5M Fine in EQT Tioga Wastewater Leak

    EQT had to take their case all the way to the Pennsylvania Supreme Court, but in the end, the company was victorious over a wildly overinflated $4.53 million fine levied by the state Dept. of Environmental Protection (DEP) for a leaky wastewater impoundment in Tioga County dating back to 2014 (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). While EQT did not say there wasn’t a problem with leaks at the site, they did say the way the DEP calculated the fine was unreasonable and arbitrary. In fact, EQT says the DEP levied the fine and took EQT to court because a few weeks prior EQT had sued the DEP over a different, unrelated matter (i.e., sour grapes on the part of the DEP). EQT appealed the fine and the case all the way to the PA Supreme Court, which heard oral arguments last November (see PA Supreme Court Hears Arguments in EQT Wastewater Leak Case). Last Wednesday the PA Supremes ruled (5-2) in favor of EQT, saying that the DEP’s levied fine was excessive and that the DEP misinterpreted language in the 1937 Clean Streams Law…
    Read More “PA Supreme Court Axes DEP $4.5M Fine in EQT Tioga Wastewater Leak”

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    PA DEP Releases Draft Final GP-5 & 5A Methane Regulations

    Last December the Pennsylvania Dept. of Environmental Protection (DEP) issued “draft final language” for the proposed General Permit 5A (GP-5A) and the revised General Permit 5 (GP-5)–regulations that supposedly will cut down on fugitive methane from escaping from drill pads and pipelines (see PA DEP Signals Onerous New GP-5 & 5A Methane Regs Coming 1Q18). The onerous regulations, which for now only apply to *new* sources (not existing) were originally prompted by bullying from the Obama Environmental Protection Agency. Even though EPA pressure has disappeared under President Trump, PA Gov. Wolf is still pushing these onerous new regs. GP-5 applies to pipelines and compressor stations, while GP-5A applies to well pads and drilling. Following a flood of new comments, the DEP tweaked the onerous regs once again (for maybe the third or fourth time) and last Friday afternoon, when nobody was working or looking or caring, the DEP published yet another revised final final final final final version of the regs (below). Are they any better than previous versions?…
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    FERC Won’t Extend Atlantic Coast Pipeline Tree Cutting Deadline

    Two weeks ago Dominion Energy asked the Federal Energy Regulatory Commission (FERC) for permission to extend tree cutting/felling season by an extra 45 days, from March 31 to May 15, in West Virginia, Virginia and North Carolina (see Atlantic Coast Pipe Asks FERC for More Time to Cut Trees). Due to restrictions for species like the threatened Indiana bat, tree cutting season is limited–from November 16 to March 31. ACP said it couldn’t meet the March 31 deadline due to a late start following state bureaucratic delays. In a presentation Dominion gave to North Carolina environmental officials a few months back, the company said if “we cannot start [pipeline construction] in time to ensure a full and efficient construction season and have to delay service by one year, the impact would be $1 billion.” Dominion maintains that worst case scenario has not yet happened. Following the FERC decision to deny extending the date for tree cutting, Dominion said they’ll shift things around and can still meet their contractual deadline of getting ACP up and running by the end of next year…
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    Riverkeeper, Big Green Groups Want FERC to Bend Rules for Them

    We are a country governed by the rule of law. Part of our system of laws (for better or worse) invests government bureaucracies with delegated power to make rules and regulations–which carry the weight of law. Children who are not disciplined (at home and at school) grow up to be adults who think silly things like rules don’t apply to them–because they don’t want them to. THE Delaware Riverkeeper falls into that camp. The Federal Energy Regulatory Commission (FERC) has rules and regulations in place to keep the agency from descending into chaos in reviewing and approving pipeline projects. One of FERC’s rules, which has been on the books for years, is that if a person or group wants to “intervene” (become an intervenor) in a project, they must file with FERC “in a timely manner.” FERC sets the amount of time, which varies with each project. It’s been our observation FERC gives at least 30 days, sometimes more, for folks to file to intervene. One of the sleazy strategies used by Riverkeeper is to get thousands of individuals (including children) to sign up as intervenors for a project in a quest to flood and overload the FERC system, slowing or stopping progress on a given project (see FERC Confirms “Intervenors” Slowing Down Pipeline Approvals). FERC has had enough. FERC commissioners have voted to tighten up the loosey-goosey way FERC has treated people and groups who file late to intervene. No more bending of the rules. In the past, Riverkeeper and others have filed to intervene weeks after the deadline for such action, and FERC has just added them as intervenors anyway. No more. Either Riverkeeper and their ilk file on time from now on, or they won’t be considered intervenors, which has them hopping mad…
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    MVP Pipeline Cleared to Begin Building Pipeline in Virginia

    In January, MDN reported that Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–had received permission from the Federal Energy Regulatory Commission (FERC) to begin tree clearing and construction of access roads and construction yards in five West Virginia counties (see Mountain Valley Pipe Gets FERC Approval to Begin WV Construction). That was MVP’s very first permission to begin construction-related activities. It was the trickle. The flood gates burst open in February when FERC issued four new orders granting MVP permission to continue not only tree clearing and building roads, but also to begin construction of the actual pipeline itself in WV, and tree clearing/preliminary construction activity in VA (see FERC Grants MVP OK to Begin Pipeline Construction in Virginia & W.V.). The activity in VA was in just one county (Giles) and in one location. MVP still could not construct pipeline in VA pending required state permits. The situation in VA fundamentally changed this week. On Monday, the VA Dept. of Environmental Quality (DEQ) issued erosion, sediment and storm water control permits for the project–meaning actual pipeline construction can now begin. And yesterday, FERC granted MVP permission to construct pipeline not only in Giles, but also in Craig, Montgomery and Roanoke counties. MVP is now fully authorized in VA and there’s no stopping it…
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    PA DEP Stops ME2 Drilling in Huntingdon County for < 1 Gal. Spill

    Sunoco Logistics Partners has had its share of problems in building the Mariner East 2 (ME2) twin NGL pipelines that run from eastern Ohio all the way to Marcus Hook, near Philadelphia. The main issue with construction of the pipeline has been underground horizontal directional drilling (HDD)–drilling under things like roads and bridges and streams and rivers–places where you can’t just dig a trench to lay pipeline. Some early problems with HDD caused the Pennsylvania Dept. of Environmental Protection (DEP) to shut down all ME2 HDD work (indeed all work period) for an extended period in January (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). After Sunoco agreed to pay the DEP a whopping $12.6 million “fine” (i.e. shakedown money), the DEP allowed work to resume in February (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction). While doing ME2 HDD work in Huntingdon County last week, Sunoco contractors reported less than one gallon of non-toxic drilling mud (bentonite) went missing–it came back out of a hole it didn’t go down. And because of that, the DEP has shut down all work at the site…
    Read More “PA DEP Stops ME2 Drilling in Huntingdon County for < 1 Gal. Spill"

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    PA Appeals Court Rules ME2 Pipe NOT Under Local Zoning

    The entire panel of judges sitting on Pennsylvania’s Commonwealth Court, an appeals court in PA, ruled yesterday that zoning regulations in a local municipality–in this case Middletown (Delaware County)–do NOT supersede the state Public Utility Commission when it comes to regulating Sunoco Logistics Partners Mariner East 2 (ME2) NGL pipeline. In May 2017, six anti-pipeline residents living near where the ME2 pipeline will pass asked the Middletown town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. The town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped-up, agitated and funded by Big Green groups filed a lawsuit against ME2, to force it to conform with Middletown’s ordinance (see 6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe). The lawsuit was filed in the the Delaware County Court of Common Pleas. The judge dismissed the case in June, so the antis, again funded by Big Green groups, appealed the case to the next higher court, Commonwealth Court. An “en banc” panel (meaning all of the judges) heard the case, indicating its high importance. The en banc panel ruled yesterday, against the Middletown residents…
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    W Pike Run Antis Want 1000′ Setback to Zone Out EQT Drilling

    A debate is playing out in West Pike Run Township in Washington County, PA (near Pittsburgh) that we find interesting. A quick PA history lesson: Back in 2012 PA passed the Act 13 law to update oil and gas regulations to account for shale drilling. One of the updates was a uniform set of zoning requirements to protect residents and the environment. Unfortunately, seven selfish townships sued and eventually won (at the PA Supreme Court) challenging those regulations. So PA towns won the right to impose restrictions on drilling activities. In West Pike Run, the debate is over “setbacks”–how far does a well have to be from nearby structures, like homes and barns and businesses. State law imposes a minimum of 500 feet from the wellhead to an “occupied” structure–and 300 feet from the well to a body of water. In West Pike Run, antis want to up that number to 1,000 feet, which would effectively prevent any more drilling by EQT, the primary driller in the township. The town recently held a hearing on the proposed 1,000 foot setback, a hearing which has been continued to a future meeting on April 16…
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