Regulation

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    OEPA Continues to Hunt Rover Pipe, Claims 2nd Spill Near River

    Ohio EPA (OEPA) director Craig Butler, aka Captain Ahab, continues his mission to harpoon that rascally great white whale known as the Rover Pipeline. Somehow Captain Ahab, er, a, Mr. Butler has “learned” that underground horizontal directional drilling (HDD) Rover was recently allowed (by the Federal Energy Regulatory Commission) to resume near the Tuscarawas River (over the objections of OEPA) has “lost” 146,000 gallons of drilling mud “down hole.” This is at the same location where Rover previously lost 2 million gallons of drilling mud down hole, some of which turned up back on the surface, at a swamp (aka “wetland”) located next to the Tuscarawas (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). That 2 million gallon “spill” in April of last year triggered a shutdown of all HDD work in Ohio. It was only in December that Rover was allowed, by FERC, to resume more HDD work at the Tuscarawas site (see FERC Gives Rover OK to Resume All HDD Work, Incl. Tuscarawas River). Butler’s spies have reported to him that more drilling mud, some 146,000 gallons, has disappeared into the earth during HDD drilling at the Tuscarawas site. Some perspective on this alleged news: First, how did Butler even know of a “problem”? OEPA doesn’t regulate the Rover project! Second, since Rover doesn’t answer to OEPA (which frosts Butler), Butler runs like a tattling child to FERC with every perceived violation he can trump up–even though he doesn’t have all the facts. Third, even though drilling mud may disappear down hole, that doesn’t mean the mud comes back to the surface. Sometimes it stays down there–forever. Fourth, even if the mud does come back to the surface, drilling mud is nontoxic–the same stuff used in kitty litter, cosmetics and toothpaste. The only thing an overabundance of spilled mud can do is smother a few fish. This latest ploy by Butler to tattle on Rover to FERC is his attempt to try and manipulate FERC into shutting down Rover’s HDD work once again…
    Read More “OEPA Continues to Hunt Rover Pipe, Claims 2nd Spill Near River”

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    PA DEP Considers Rule Reducing/Eliminating VOC Emissions for O&G

    On Jan. 24 the Pennsylvania Dept. of Environmental Protection (DEP) Small Business Compliance Advisory Committee will hold a meeting in Harrisburg to discuss, among other things, RACT (“reasonably available control technology”) regulations for the oil and gas industry. The new regulations are aimed at further reducing volatile organic compound (VOC) emissions at oil and gas sites. The new regs, scheduled to go into effect in 2021, will require the use of technology to achieve a 95% reduction in VOCs from existing sources, including storage tanks, pneumatic pumps and centrifugal compressors. Supposedly this is a requirement being driven by a Control Technology Guideline (CTG) from the federal Environmental Protection Agency. We’re not sure whether conventional/vertical, or unconventional/shale will be affected by the coming changes. We suspect both will be affected. So it behooves the industry to get involved now, while there’s still time to tweak the new regs…
    Read More “PA DEP Considers Rule Reducing/Eliminating VOC Emissions for O&G”

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    Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC

    This is a bitter and sad day. The five Commissioners of the Federal Energy Regulatory Commission (FERC) released a decision yesterday (copy below) that FERC will not overrule an illegal decision by the corrupt Cuomo Dept. of Environmental Conservation (DEC) to block construction of the Constitution Pipeline (which FERC approved in 2014). Is this truly “lights out” for the Constitution? It would seem so. Cuomo’s DEC took more than two years to evaluate and eventually reject the Constitution Pipeline–a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to move Marcellus gas into NY and New England (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Constitution went to federal court to overturn that decision, but ultimately failed last August (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). But then a ray of hope appeared in the galaxy. FERC overruled NY DEC in another pipeline case, so Constitution filed a request with FERC to overrule NY DEC in their case (see Constitution Pipeline Asks FERC to Override NY DEC). FERC wanted to overrule DEC again. You can read between the lines and detect it in yesterday’s decision. But ultimately FERC could not overrule the DEC because the DEC rejected the permit with four days left ticking on a one-year clock (we explain it all below). So this question: Are all avenues exhausted for Constitution? Is the ray of hope in the galaxy now extinguished? Will evil (i.e., the Cuomo-corrupted DEC) rule the galaxy? According to Williams, Constitution’s builder, the answer is an emphatic, “NO!” Williams will first file with FERC, asking them to rehear their decision (which we don’t think is likely). If FERC denies the rehearing request, Williams is prepared to appeal FERC’s decision to federal court…
    Read More “Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC”

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    Dominion Files FERC Request to Expand Pipeline from PA to OH

    On Wednesday, Dominion Energy filed a request with the Federal Energy Regulatory Commission (FERC) to expand capacity along the existing Dominion Energy Transmission Inc. (DETI) pipeline from Pennsylvania to Ohio. Why? To flow more gas that will be used to generate electricity for the Midwest market. The project, called the Sweden Valley Project, is projected to cost $48 million and add another 120 million cubic feet per day (MMcf/d) of PA Marcellus Shale gas to the existing flow along DETI. Dominion says all 120 MMcf/d are already contracted and spoken for–by an unnamed customer. Notice the headline says “expand” and not “extend.” This project would build a tiny three miles of new pipeline, with the new pipeline lying next to existing pipeline (in Greene County, PA). The only greenfield construction is building a 1.75-mile pipeline to connect with the Tennessee Gas Pipeline in Tuscarawas County, OH. The other main part of the project is updating three units a compressor station in Licking County, OH. In the constellation of pipeline projects that disturb earth and disrupt landowners, this one is pretty minor–yet it will deliver big results by flowing an extra 120 MMcf/d of gas west to a new market…
    Read More “Dominion Files FERC Request to Expand Pipeline from PA to OH”

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    Monroeville Pushes Ban on NatGas Activity, Incl. Drilling & Plants

    The dunderhead leaders of Monroeville, PA (Allegheny County, suburb of Pittsburgh) are at it again, acting hostile toward the shale industry, attempting to stymie any kind of shale activity within its borders. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance is meant to hassle Huntley & Huntley (H&H), which wants to conduct seismic testing in two rural areas of the municipality. In October, the contractor hired to do the seismic work for H&H, Geokinetics, took Monroeville Council to court over their punitive seismic ordinance. Both sides compromised and in November settled the case (see Monroeville Council Approves Seismic Testing Court Settlement). In October, Monroeville Council passed a temporary ban on oil and gas well drilling everywhere except for those areas marked M-2 industrial zoning–a big change (see Monroeville, PA Hostile to Shale, Bans Drilling in Most Places). Previously drilling permits were “conditional use,” meaning each permit was evaluated on its own merits, regardless of which zoning district it was located in. By limiting drilling to M-2, the Council effectively banned drilling in the municipality. They passed the temporary ban until they could pass a new zoning ordinance that would set the frack ban policy in concrete. That day is now here. Monroeville Council has just advertised a new zoning ordinance to FURTHER RESTRICT any kind of oil and gas activity–not just drilling, but pipelines, compressor plants, etc.–to a 150-acre parcel located next to the city dump. That’s 150 acres out of 12,620 acres that make up Monroeville (1%). In other words, this is a complete and total ban on the shale industry in Monroeville–the Pittsburgh suburb that’s officially “closed for business”…
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    Old Hippies Turn Out at WV DEP Hearing to Oppose Mountaineer Pipe

    In April 2017, MDN brought you the news that Columbia Pipeline (now owned by TransCanada) had filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in the Eastern Panhandle of West Virginia with the Columbia Gas Pipeline in Pennsylvania (see New 3.5 Mile Pipeline Project to Drill Under the Potomac River). That small section of pipeline is hotly opposed and part of the larger Eastern Panhandle Expansion project–a project to deliver natural gas via local distribution channels (local utility Mountaineer Gas) to a new industrial facility in Berkeley County, WV, and to provide gas to other local businesses and residents in the Tri-State area. There are three phases to the Eastern Panhandle Expansion project: Phase One runs a 22.5-mile, 10-inch-diameter steel pipeline from Morgan County to Martinsburg; Phase Two includes a loop to Charles Town; and Phase Three will build a four mile segment of pipeline into Martinsburg. The WV Dept. of Environmental Protection held a hearing on Phase One on Tuesday, at the Berkeley Springs High School. All of the people who spoke at the hearing, some 33 of the 80 people present, spoke against the project. If you look at a picture of the crowd, you’d swear you were at a ZZ Top look-alike convention. That is, a bunch of old hippies. Here’s a report on the Tuesday hearing…
    Read More “Old Hippies Turn Out at WV DEP Hearing to Oppose Mountaineer Pipe”

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    WV Update on China Investment: “Dirt Could be Flying This Year”

    WV Commerce Sec. Woody Thrasher

    West Virginia State Commerce Secretary Woody Thrasher, the man who brokered an unbelievable deal with China, getting China to agree to spend a mind-blowing $83.7 BILLION in the Mountain State over the next 20 years, gave an update to WV legislators yesterday on the China deal. In early November Thrasher visited China as part of a trade delegation with President Trump. On that trip, China agreed to invest a total of $250 billion in American (mostly energy) projects, $83.7B of which (a full third!) will go to investments in WV (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). One legislator at yesterday’s meeting wanted to know when the state might begin to see actual construction activity. Thrasher, who said he’s already made three visits to China and is leaving for his fourth visit this Saturday, said the Chinese have “a great sense of urgency” about beginning projects in the state, and that “the dirt could be flying this year.” Thrasher cautioned legislators that the state needs to up its regulatory and business game–to make the state more attractive to China and others who will flock to the region following a buildup of the shale/petrochemical industry. Thrasher also hinted that the Chinese may be willing to invest in the much-talked-about $10 billion NGL storage hub, the same project that recently received positive signs it will receive a loan guarantee from the federal government (see Appalachian NGL Storage Hub Gets Serious with DOE Loan Guarantee). Here’s Thrasher’s timely update to WV legislators…
    Read More “WV Update on China Investment: “Dirt Could be Flying This Year””

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    New Bill Would Force PA DEP to Work WITH the Marcellus Industry

    Pennsylvania State Rep. Brian Ellis (Republican from Butler County) introduced House Bill (HB) 1960 on Jan. 5. The bill, known as the “State Agency Regulatory Compliance Officer Act,” would create a new Regulatory Compliance Officer position in each state agency, including the Dept. of Environmental Protection (DEP). The new Compliance Officer would have the authority “to block an agency from imposing fines and penalties for violations and to rewrite the policies under which fines and penalties are imposed.” The aim of the bill is to force all PA state agencies (including the DEP) to work *with* the people and companies they regulate. It would create a different mindset–instead of “gotcha” enforcement of regulations, it’s aimed at making it easy to comply with regulations. The bill states this in its opening lines: “(1) It is the purpose of this act for agencies to work collaboratively with, instead of acting punitively towards, regulated communities. (2) Agencies should strive to make the regulations which the agencies administer and enforce as clear and easily navigable as possible for regulated communities. (3) In administering a regulation, an agency’s primary goal should be to ensure compliance rather than to exact punishment.” Those who love Big Government don’t like this bill. Will this bill go anywhere? Who knows! What the bill indicates to us is that at least some legislators (Republicans) in Harrisburg are listening and “get it.” What do they get? That PA has developed a reputation for burdensome regulations and if the state wants the Marcellus miracle to continue, and grow, things need to change at the DEP. A $83.7 billion investment by China in neighboring WV’s shale/petrochemical industries should be a bright, red slap across every PA legislator’s face. Wake up! If you don’t fix the DEP, quickly, you’ll lose PA’s Marcellus momentum to someone else…
    Read More “New Bill Would Force PA DEP to Work WITH the Marcellus Industry”

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    Work on Mariner East 2 Continues Following “Stop Work” Order

    Last week MDN reported the news that the Pennsylvania Dept. of Environmental Protection (DEP) has suspended all construction work on the Mariner East 2 Pipeline (ME2) project until further notice (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). However, all doesn’t necessarily mean all. A Chester County, PA anti’s celebration of the stop work order came crashing down when she noticed that work was still happening in an area located near her home. How can this be?! It seems the DEP’s statement that “all construction must stop” means “all construction which the DEP permits and authorizes must stop,” which can be further defined as “anything that disturbs the ground.” If the work involves digging, shoveling, etc., it’s stopped. But there’s still plenty of work that can continue–work that is not permitted by the DEP, including welding pipes together. That’s what’s happening at the site in Chester County–and local antis desperate to stop ME2 are mad and discouraged that Sunoco Logistics Partners continues to keep at least some of their workers busy while the company works to get full construction activity restored…
    Read More “Work on Mariner East 2 Continues Following “Stop Work” Order”

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    Jessup Town Board Continues Effort to Stop Gas-Fired Elec Plant

    We don’t know how many times we have to keep ringing the bell–this is a five-alarm situation! Wake up! A group of Democrats elected to the Jessup, PA Borough Council (Scranton suburb) are actively trying to block the completion of the state’s largest natural gas-fired electric generating plant–the first phase of which will be ready to go online in a little over a month. A bunch of ninny nanny antis didn’t like that they couldn’t stop the project, so they used money and help from Big Green groups last November to launch successful campaigns to defeat incumbent Council members who voted to authorize the Lackawanna Energy Center to be built by Invenergy (see Scranton Antis Get Political Revenge for Gas-Fired Power Plant). A new majority of anti-power plant radicals took office last week and wasted no time in attempting to slow (or stop) the project (see New Town Board Tries to Stop Nearly-Done Gas-Fired Plant in Jessup). Yesterday, Jessup Council members voted unanimously to hire the same attorney used by Big Green group Delaware Riverkeeper, Jordan Yeager, to “investigate” a request by Invenergy to flush 56,000 gallons of heated water (used to cool the plant) per day down the municipal sewer system. Council voted, unanimously, to pay Yeager and another attorney from the same Big Green law firm $225 per hour for their “expertise” in reviewing Invenergy’s request. No doubt the new council members are hoping Yeager can figure out a way to deny Invenergy’s request and perhaps kill the plant–or at the very least delay the project as long as possible. That seems to be the strategy here. Why else would Jessup Council hire a Big Green lawyer like Yeager? This is NOT a good faith effort to work with Invenergy, as some Council members pretend. It is a bad faith effort to screw Invenergy and stop the plant…
    Read More “Jessup Town Board Continues Effort to Stop Gas-Fired Elec Plant”

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    Hand Wringing in PA Following FERC Rejection of Coal/Nuke Subsidies

    Pennsylvania legislators (Democrats and RINOs) who were banking on the federal government to “fix” the problem of the free market are panicking after the Federal Energy Regulatory Commission rejected DOE Sec. Rick Perry’s so-called Grid Resiliency Pricing Rule that would tip the scales in favor coal and nuclear energy, keeping unprofitable electric generators in business longer (see FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid). The PA legislators are panicking because nuke and coal plants in the state may now shut down much sooner than expected. To be fair, those plants employ a number of good people–and we hate to see anyone lose a job. But the fact is new gas-fired plants are taking their place, and those new gas plants generate good jobs too. The legislators were hoping the feds would do something, and since the feds aren’t doing anything, that means the problem now bounces back to the individual states, including PA. There’s a lot of hand wringing around Harrisburg. To which we say, relax! Marcellus Shale gas has got your back. Most of the noise about this issue comes from those who own the dinosaur/dying facilities. They don’t really give a flip about “grid reliability.” They only care about their own businesses and seek crony capitalism to prop up the bottom line. FERC made the right decision. PA legislators need to get a grip. This is not the end of the world…
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    Our Favorite Govt Agency, EIA, Gets New Leader: Dr. Linda Capuano

    Dr. Linda Capuano

    Our favorite government agency, the U.S. Energy Information Administration (EIA), now has a new Administrator. President Trump has appointed Dr. Linda Capuano to the position. She began her new job yesterday. Capuano was, until her new job at EIA, a fellow in energy technology at the Baker Institute Center for Energy Studies. She was also on the faculty of Rice University’s Jones Graduate School of Business, where she taught operations strategy for the executive MBA program. EIA is about as non-political of an agency as you can find in Washington, DC. We’re sure she will keep it that way. EIA needs to be apolitical because they publish critical information on energy–both its production and use. There’s no room in cold, hard data for political gamesmanship. We religiously follow the EIA’s monthly Drilling Productivity Report (see the most recent edition here: EIA Dec ’17 Drilling Report: New Year to Begin in Record Territory). Please join us in welcoming Dr. Capuano to this very important position…
    Read More “Our Favorite Govt Agency, EIA, Gets New Leader: Dr. Linda Capuano”

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    FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid

    On September 29, U.S. Energy Secretary Rick Perry sent a letter to the Federal Energy Regulatory Commission (FERC) directing the agency to complete action on a “Grid Resiliency Pricing Rule”–ostensibly within 60 days. The proposed rule Perry proffered, sometimes referred to as the Notice of Proposed Rulemaking (NOPR), would put in place regulations that favor electric generating plants powered by coal and nuclear. That is, it would allow unprofitable ventures to pass along new costs, making them profitable–in the name of protecting the electric grid. The theory Perry (and by extension President Trump) subscribe to is that if the free market drives out coal and nuke plants, the electric grid would be “vulnerable” to far fewer sources to power it. If coal and nukes are all but gone, and all of sudden there’s a natural gas shortage, or prices spike for natural gas, it would endanger the electric supply in this country. On one side of the argument are those who believe the free market sometimes needs a helping hand (via regulation), and on the other those who believe the free market will sort it all out and we are not vulnerable. The incoming/new chairman of FERC, Kevin McIntyre, asked for an extension so he and another new FERC member could take a little time to do a proper review (see Kevin McIntyre Sworn in as 5th FERC Commissioner, New Chairman). The review is done and yesterday all five FERC commissioners voted unanimously to reject Perry’s Grid Resiliency Pricing Rule. However, as a consolation prize, FERC launched an effort to formally canvas electric grid operators, compelling them to respond with details of their plans for grid resiliency. It’s a small bone to coal and nuclear, but a bone nonetheless…
    Read More “FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid”

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    DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation

    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). In dropping their bomb, the DRBC said (with no proof) that fracking “poses significant, immediate and long-term risks” to the waters in the basin. Then they declared, by fiat, that “High volume hydraulic fracturing in hydrocarbon bearing rock formations is prohibited within the Delaware River Basin.” However, they also said (in the fine print) that water from the Delaware River Basin can be used by frackers in other locations–which sent antis like THE Delaware Riverkeeper into apoplectic shock. The DRBC announced they would allow public comment, via written communication, through Feb. 28. They also planned four public hearings (i.e. freak shows) to allow antis the opportunity to parade before the microphones and make jerks of themselves (we’ve seen it many times). Antis said three months wasn’t enough time to crank up the form letter machine nor is it enough freak show opportunities (see Enviros Tell DRBC Not Enough Freak Shows Scheduled on Frack Ban). True to form, the DRBC has, once again, caved to the only constituency they listen to: anti-drillers. Yesterday the DRBC announced they will extend the public comment period from Feb. 28 to Mar. 30, and they will add another two freak show public hearings to the roster…
    Read More “DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation”

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    PA DEP Adopting New Rules for Gas Wells Located Near Coal Mines

    In December, the Pennsylvania Dept. of Environmental Protection (DEP) released “interim final technical guidance” (i.e., new regulations) for drilling Marcellus Shale natural gas wells in areas where there is longwall coal mining. Sometimes drillers want to lease and drill under coal mines. Since coal mines sink large holes in the ground, there are existing guidelines in place for how closely an oil/gas well can be drilled on or under a coal mine–guidelines put in place in 1957. As a result of legislation passed in 2011 called Act 2, a review was conducted to see if the standards for oil/gas drilling near coal mines might be modified, allowing such drilling to happen in conditions not currently allowed. A study was performed and in January 2017 the DEP rejected that study–preferring to keep a default ban on any drilling under coal mines for the time being (see PA DEP Rejects Revisions to Regs re Drilling Near Coal Mines). Since that time the DEP has continued to work on the issue and has now produced guidelines it thinks can safely allow shale drilling under coal mines, at least in certain circumstances. The DEP issued their interim final guidelines back in December and will accept public comment until Jan. 31 of this year. After that, the DEP will make final tweaks and slap a “done” sticker on it. We have a copy of the interim guidelines below, which may affect some of our shale drilling subscribers…
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    Shale Wastewater Treatment Plant Planned for Potter County, PA

    A new shale wastewater treatment facility that works in tandem with a local sewage treatment plant may be on the way in Coudersport (Potter County), PA. Epiphany Water Solutions, via a subsidiary company called Epiphany Allegheny, filed for a permit to build a centralized water treatment facility in Coudersport in July 2017. The initial application with the Dept. of Environmental Protection (DEP) was deemed “incomplete”–so Epiphany filed again and this time the application was complete. The DEP will hold a Jan. 16 public hearing in Coudersport to gain local resident’s input on the facility. This is not the first we’ve heard of Epiphany. They were one of four winners of the Ben Franklin Institute’s Fifth Annual Shale Gas Innovation Contest in 2016 (see 4 Winners Bag $80K at 5th Annual Shale Gas Innovation Contest). Epiphany started life as a company with a mission to pioneer the use of solar technology to desalinate water so people in poor countries have safe drinking water. Laudable goal. However, Epiphany found they actually need to turn a profit and pay bills first–and their technology works equally well for the oil and gas industry. CONSOL Energy (now CNX Resources) was an early backer and user of their technology. JKLM Energy, owned by Buffalo “Marcellus” Bill’s owner Terry Pegula and with active drilling in Potter County, needs a better way to dispose of frack wastewater. So Pegula turned to Epiphany and Epiphany is working with the Coudersport Area Municipal Authority (CAMA) to make it happen…
    Read More “Shale Wastewater Treatment Plant Planned for Potter County, PA”