Regulation

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    WV House Advances Bill to Fix Post-Production Deductions

    Earlier this week MDN told you that West Virginia royalty owners are pushing Senate Bill (SB) 360 to fix the issue of post-production deductions drillers take from royalty checks (see WV Royalty Owners Push Bill to Fix Post-Production Deductions). SB 360 would eliminate post-production expenses, such as transportation or severance taxes from royalty owners’ checks. The new news is that the WV House of Delegates is working on its own version of SB 360, called House Bill (HB) 4490. On Wednesday, the House Judiciary Committee voted to report the bill out–that is, they approved the bill to go on to the next step. But the vote, which was a voice vote, was split, indicating the ultimate success of the bill is far from assured. Needless to say drillers are not happy with either SB 360 or HB 4490. According to Anne Blankenship, executive director of the West Virginia Oil and Natural Gas Association, her group (which represents many, perhaps all of WV’s shale drillers) is not actively opposing the bill, but they are letting everyone know they don’t support it–which we call a distinction without a difference. Hundreds of people who work for the drilling industry rallied at the state Capitol in Charleston on Wednesday–there to push for passage of a bill that appears to be on the fast track: HB 4268, the “co-tenancy” bill. Below is an article covering the rally, which mentions HB 4490 on post-production deductions…
    Read More “WV House Advances Bill to Fix Post-Production Deductions”

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    Shell Tries to Calm Troubled Ambridge Water Authority re Pipeline

    Shell wants to build a 97-mile ethane pipeline to feed the mighty $6 billion cracker plant its building in Beaver County, PA. Shell chose not use eminent domain but instead negotiated with (paid big bucks for) rights of way along the pipeline’s path. Earlier this month additional details came out about the proposed project when the Pennsylvania Dept. of Environmental Protection (DEP) published an application from Shell for stream crossing permits. When the details became known, the Ambridge Water Authority (in Beaver County), an organization that oversees a reservoir that provides drinking water for ~30,000 people, expressed “strong opposition” to the route of the pipeline (see Ambridge Water Authority Strongly Opposes Shell Ethane Pipe Route). But wait. Didn’t Ambridge know the route back in October 2017, when Shell first filed an application for the project? Yes they did. However, the stream crossing permit application reveals details either not in, or not obvious, in the original application–details that the pipeline will go under three streams that feed the Ambridge reservoir. That got the board up in arms. In a statement, the Water Authority said, “we will do everything in our power to try and have the pipeline relocated outside of our watershed and away from our main, and only, raw water line.” Tuesday night the Authority held a regularly scheduled meeting. Shell sent along several officials to talk with members of the board, to try and calm the troubled waters at Ambridge, so to speak. Did it work? Not really…
    Read More “Shell Tries to Calm Troubled Ambridge Water Authority re Pipeline”

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    Final State Permits Expected Soon for OH Mountaineer NGL Storage

    Some new details have emerged with respect to the Mountaineer NGL Storage facility proposed for Monroe County, OH, located just across the river (and border) from West Virginia. What did we know about the proposed project? The Colorado company behind the project plans to spend up to $500 million to build it; some 20 drillers have expressed interest in contracting with the facility to store ethane; and the nearby PTT Global cracker plant project (if it gets built) and the under-construction Shell cracker plant are both interested in connections to the facility. Last November, we learned there is a construction delay until mid-this year (see Yet Another Update on Stalled Mountaineer NGL Storage Proj in OH). Why the delay? Because of regulators in Ohio. At the “Emerging Opportunities Ohio Valley Conference” held yesterday in WV, Mountaineer NGL president David Hooker provided an update and some new-to-us details about the project. He said his company will file paperwork for “final state permits” in March. While “not a lot has changed” with Ohio regulators dragging their feet, here’s something that has changed. In order to pump out the NGLs from the underground storage cavern, brine (salty water) will be pumped down the bore hole, to force the NGLs back up to the surface. Original plans called for a single brine pond to store the liquid when it’s at the surface, waiting to be used. New plans call for two brine ponds. So far Mountaineer has spent $20 million on the project. If everything gets approved and demand develops as expected, the plan is to spend up to $130 million, which will build enough infrastructure to store 3 million barrels of NGLs. However, there is also a stretch goal of investing up to $500 million to store 10 million barrels. Here’s an update from our friends at Kallanish Energy, who attended yesterday’s event…
    Read More “Final State Permits Expected Soon for OH Mountaineer NGL Storage”

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    Last In-Person DRBC Frack Ban Circus Held in Lehigh Valley

    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, 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, so the DRBC caved (yet again) to the only constituency they listen to: anti-drillers. The DRBC subsequently announced they would extend the public comment period from Feb. 28 to Mar. 30 and add another two freak show public hearings to the roster (see DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation). Yesterday the final in-person session was held in the Lehigh Valley, at Lehigh Carbon Community College. What’s that? The Lehigh Valley isn’t actually IN the Delaware River Basin? You think that actually matters? The purpose was to locate the session somewhere that’s solidly against fracking. Yesterday’s session didn’t disappoint. Grab the peanuts and popcorn…
    Read More “Last In-Person DRBC Frack Ban Circus Held in Lehigh Valley”

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    Rover Starts Up 2nd Mainline Compressor, Volume Grows to 2 Bcf/d

    Yesterday the Federal Energy Regulatory Commission (FERC) granted Rover Pipeline permission to start operations at its Mainline Compressor Station 2 in Wayne County, OH. Rover is a “monster” pipeline, a $3.7 billion, 711-mile natural gas pipeline that runs from western PA, northern WV and eastern OH through OH into Michigan and eventually to Canada. Rover is the largest of all Marcellus/Utica pipeline projects that will (within the next month or so) begin to flow 3.25 billion cubic feet per day (Bcf/d). With the startup of this second mainline compressor, volume along the portions of the completed pipeline will flow 2 Bcf/d. The company maintains it is on track to have the pipeline fully operational by the end of March. It is an engineering marvel, although not without some bumps along the way (see yesterday’s post, Ohio EPA Continues to Target Rover Pipe in New FERC Letter). Here’s the stellar news that the Wayne compressor is, likely as you read this, up and running…
    Read More “Rover Starts Up 2nd Mainline Compressor, Volume Grows to 2 Bcf/d”

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    Ohio EPA Continues to Target Rover Pipe in New FERC Letter

    When will Captain Craig “Ahab” Butler, executive director of the Ohio EPA, realize he’s never going to harpoon his great white whale–Rover Pipeline? Captain Butler is at it again. The Ohio EPA filed a letter with the Federal Energy Regulatory Commission (FERC) last week claiming that testing done by OEPA found the presence of very low levels of the toxic chemical tetrachloroethene at Rover’s underground drilling site at the Tuscarawas River in southern Stark County. OEPA admits they can’t prove the very low levels of the compound actually came from Rover’s drilling activity–but hey, what’s proof got to do with it? Un-coincidentally, two Democrat members of Congress, one from New Jersey, the other from Washington State (one 560 miles away from Ohio, the other 2,400 miles away from Ohio) are asking FERC for a “briefing” on the Rover Pipeline project. Apparently OEPA couldn’t get any Ohio members of Congress to step up and pressure FERC, so OEPA went shopping for sympathetic Dems in other states who would. And oh, by the way, the Dems want (i.e. demand) their “briefing” no later than Feb. 28th…
    Read More “Ohio EPA Continues to Target Rover Pipe in New FERC Letter”

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    Brooke County WV Power Plant Wins State Approval

    Last September none other than West Virginia’s Secretary of Commerce, Woody Thrasher, admitted publicly that his beloved state is decidedly unfriendly to new natgas-fired electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). In a speech before state legislators, Thrasher said while Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, WV has built NONE. Zero. Nada. And that has to change. Pressure from the coal industry and regulatory red tape are preventing new projects from happening. A few years ago it seemed as though a project in Marshall County was ready to begin construction (see Progress for 3 WV NatGas Electric Plants; 1 Breaks Ground in 2016). However, that project is stalled–perhaps even dead (according to rumors we’ve heard). Last week there was a sliver of light when Harrison County commissioners voted to pass a resolution supporting a long-delayed gas power plant project there (see Harrison County, WV Commissioners Vote to Help Delayed Elec Plant). And now, finally, some sunshine breaks through! A power plant project in Brooke County, WV (same developers, Energy Solutions Consortium or ESC) received a siting certificate approval from the WV Public Service Commission. This is a good sign. Finally, a power plant project in WV that is moving forward…
    Read More “Brooke County WV Power Plant Wins State Approval”

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    Pittsylvania County VA Board Approves Mountain Valley Pipe Rezoning

    Uncommon common sense can be found among county leaders in Pittsylvania County, Virginia, who approved a rezoning request last night for the 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. Although the entire path for MVP is important, there are two places where the pipeline’s path is critical and cannot be moved. One of those points is where it starts–and the other where it ends and connects to the mighty Transco. Pittsylvania County is where MVP ends–and where it can’t be moved. There many (many!) people who spoke out against MVP in various county hearings. Here’s where the uncommon common sense was exhibited. In speaking about those who railed against the pipeline, Pittsylvania Supervisor for the Westover District, Ron Scearce, said this: “One thing that’s surprising to me with all of this [opposition] is that there has not been one county resident who was affected by the project who spoke [against it].” Scearce gets it. A very vocal minority of environmental zealots, dedicated to defeating any fossil fuel project, are the ones who show up and speak out. The people across whose land the pipeline will run? They’re fine with it. Scearce and the other supervisors voting last night were not fooled by the tactics of the enviro-left. The property was rezoned to allow MVP by a UNANIMOUS vote…
    Read More “Pittsylvania County VA Board Approves Mountain Valley Pipe Rezoning”

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    WV Royalty Owners Push Bill to Fix Post-Production Deductions

    West Virginia royalty owners (which sometimes means landowners, sometimes not) are pushing Senate Bill (SB) 360 to fix the issue of post-production deductions drillers take from royalty checks. A brief history: In December 2016, MDN reported on the huge WV Supreme Court decision against EQT that disallows EQT from deducting post-production expenses from royalty checks, even with signed contracts in place (see WV Supreme Court Rules EQT Can’t Deduct P-P Costs from Royalties). In February 2017, with a brand new justice on the bench, the WV Supreme Court agreed to rehear the case after an appeal filed by EQT–a rare and unusual step (see EQT Catches Big Break in WV Supreme Court re Royalty Deductions). In May 2017, the WV Supreme Court ruled on the reheard case, overturning its previous decision. The court ruled to allow EQT to deduct “reasonable” post-production expenses (see WV Supreme Court Reverses Itself, Post-Production Deductions OK). Those who won the original case (and lost the reheard case) say newly elected Supreme Court Justice Elizabeth Walker had conflicts of interest and should not have been allowed to vote to rehear the case in the first place (which she did). On that basis, they tried to avoid the rehearing altogether, but that failed. Newly elected Justice Walker, with (according to the losing side) conflicts of interest, voted in favor of EQT. On the basis that Walker should not have been part of the process at all, the case was appealed to the U.S. Supreme Court. However, the Supremes refused to hear the appeal, making post-production deductions the law in WV (see U.S. Supreme Court Rejects Appeal of WV EQT Royalty Case). The only path left to royalty/landowners is to pass a new law. That new law is SB 360…
    Read More “WV Royalty Owners Push Bill to Fix Post-Production Deductions”

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    Obtuse NY Assemblywoman from Ithaca Proposes “No-Tenancy” Bill

    Barbara Lifton

    Ithaca, NY is unfortunately saddled with an Assemblywoman who is, charitably, not too bright. Assemblywoman Barbara Lifton is a virulent anti-fossil fueler, even though she herself uses fossil fuels each and every day of her life. She was dead set against converting a coal burning plant near Ithaca into burning natural gas (see Cayuga Power Plant Stays Open (Burning Coal) – Thx to Fractivists). Thanks (in large part) to Lifton, the residents of Ithaca continue to breathe dirty air. She also tried to stop a federally permitted natgas pipeline from expanding in the region (see NY State Legislator Tries to Derail Dominion New Market Project). And now she’s at it again. Even though there is no shale drilling in New York, apparently Lifton wants to drive the final nail in the coffin of the conventional drilling industry too, driving out all oil and gas activity in the state. Lifton has introduced a bill that we call “no-tenancy.” You’ve been reading about West Virginia’s co-tenancy bill here on MDN, a bill that would allow rights owners in property to sign a lease if 75% or more of the owners agree to lease terms. It corrects a situation where dozens, sometimes hundreds of people who own a fractional share in property can’t be found, or refuse to sign, screwing all of the other owners of the property. Lifton’s bill, A2499, would require 100% of all rights owners to sign leases “for oil, gas or mineral rights, and any modification, extension or renewal thereof.” It is plainly meant to end any future drilling of any kind in the state. That’s the aim. The Independent Oil & Gas Association of New York (IOGANY) is pushing back…
    Read More “Obtuse NY Assemblywoman from Ithaca Proposes “No-Tenancy” Bill”

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    PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline

    Once again, in what appears to be a pattern, the Pennsylvania State Dept. of Environmental Protection (DEP) is caving to pressure from virulent anti-fossil fuelers. This time in regard to Shell’s proposed Falcon Ethane Pipeline project. Shell is working on an ethane “pipeline system” with two “legs” to feed the mighty cracker plant being built in Monaca, Beaver County (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Last October Shell filed an application with the PA DEP for the PA portions of the pipeline, some 60 miles of the total system (see Shell Files PA Application for Ethane Pipe to Feed Cracker Plant). The DEP advertised an official comment period for the project on Jan. 20, giving interested parties until Feb. 20 to file their comments–an entire month (see PA DEP Invites Public Comment on Shell 60-Mile Ethane Pipeline). However, one month isn’t enough time for anti-drillers to marshal the faithful to try and sink the project. FracTracker Alliance, an anti-fossil fuel organization, colluded with other groups to put the word out to flood the DEP with demands to keep the comment period open. The DEP folded, like a flimsy house of cards, and has now extended the comment period to April 17th along with three public hearings (circus freak shows), which will give the FracTracker faithful time to mount publicity and legal offensives to try and stop the project. If the pipeline doesn’t happen, work at the cracker plant stops. Which, of course, isn’t going to happen. But it illustrates the true aim of FracTracker and other virulent (way, way, WAY outside the mainstream) anti-fossil fuel groups…
    Read More “PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline”

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    NJDEP Hail Mary – Pleads with FERC to Stop PennEast Pipeline

    The now fully politicized New Jersey Dept. of Environmental Protection (NJDEP), along with the Delaware and Raritan Canal Commission, filed a joint request with the Federal Energy Regulatory Commission (FERC) last Friday asking FERC to reconsider and rescind its approval of the PennEast Pipeline project, which FERC granted just last month (see FERC Grants Final Approval for PennEast Pipe – Real Battle Begins). PennEast is a $1 billion, 120-mile primarily 36-inch natural gas pipeline that will stretch from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The pipeline is an important conduit to move gas from the prolific gas fields of northeastern PA to markets in southeast PA and New Jersey. From the beginning of the project there have been a collection of so-called environmental organizations opposing it–including THE Delaware Riverkeeper, NJ Sierra Club, and the NJ Conservation Foundation. All radical groups. Unfortunately NJ elected an authoritarian Democrat as governor–Phil Murphy–who pledged to try and stop the project (see Dem Candidate for NJ Gov Opposes PennEast, After He $upported It). Murphy (a tool of Big Green) has politicized the NJDEP and has caused them to dance to his radical tune. In addition to receiving a formal request by NJDEP, FERC also received the same request from the nutty Sierra Club (no surprise there), and also a far-left Democrat State Senator, who is using the request as a fundraiser for his next campaign…
    Read More “NJDEP Hail Mary – Pleads with FERC to Stop PennEast Pipeline”

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    OH Supreme Court Rejects Anti Request to Stop Wastewater Disposal

    The Ohio Dept. of Natural Resources (ODNR) is actively working on new regulations “regarding storage, recycling, treatment, processing, and disposal of brine and other waste substances.” That is, for wastewater treatment and disposal from the oil and gas industry. It’s taking the ODNR a while to hash out the new regs (they were instructed to do so back in 2014). However, in the meantime, ODNR issues special orders/permits on a case by case basis to allow wastewater treatment and disposal facilities to start up and operate. Hoping to shut down all drilling (in Ohio and other states that send wastewater to Ohio), the odious Food and Water Watch and misnamed FreshWater Accountability Project sued in the Tenth District Court of Appeals, arguing that because ODNR hasn’t released the new regs, they shouldn’t be allowed to keep issuing temporary/special permits. The Tenth District said the radical enviro groups didn’t have standing to file the case and dismissed it. On appeal to the State Supreme Court, the Supremes said the same thing. Therefore, ODNR’s authority to continue granting temporary/special permits for wastewater treatment remains in effect. Another huge loss for Food and Water Watch…
    Read More “OH Supreme Court Rejects Anti Request to Stop Wastewater Disposal”

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    PA Town Sues Sunoco for ME2 Pipe Construction “Too Close” to Homes

    We understand why folks in Uwchlan Township (Chester County, PA) may be upset with Sunoco Logistics and the Mariner East 2 NGL pipeline that’s crossing through their area. Last summer drilling work for the pipeline in Uwchlan created cloudy well water for some residents (see ME2 Pipe Work in Chester County Creates Water Well Issue for Some). The PA Dept. of Environmental Protection (DEP) recently allowed Sunoco to resume work in the township (and elsewhere)–after Sunoco paid a $12.6 million fine (see PA DEP Allows ME2 Underground Drilling to Resume in Chester County). So yeah, residents have some concerns. However, they’re going about venting their frustration in the wrong way. Last week supervisors in Uwchlan Township voted unanimously to enforce an ordinance that requires pipelines like ME2 to be set back 1,000 feet from buildings. In some cases, ME2 is being built within 100 feet of buildings. While we appreciate Uwchlan’s concerns, the simple fact is, local municipal ordinances DO NOT override state regulations. In this case, it is the state DEP and Public Utility Commission that regulate the project. It is state law that trumps local ordinances–as it should be. By all means, wheel and deal and pressure and try to get Sunoco to change the route–but you cannot take the law into your own hands, which is exactly what Uwchlan is attempting to do…
    Read More “PA Town Sues Sunoco for ME2 Pipe Construction “Too Close” to Homes”

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    Co-Tenancy Bill Passes WV House, Goes to Senate for Final Vote

    MDN has written a number of posts about an effort in West Virginia to correct an ongoing issue called co-tenancy (see our co-tenancy stories here). In some cases rights owners can’t be found to sign leases, resulting in a great deal of acreage being unavailable for drilling that otherwise would be. In WV there are often multiple rights owners listed for a property–sometimes 200 or more rights owners for a single piece of property! It is difficult, if not impossible, to track them all down and get them all to sign on the dotted line. Co-tenancy corrects that situation by allowing 75% of rights owners to agree/sign for everyone. Yesterday we told you that the full House of Delegates was slated to vote on House Bill (HB) 4268, “Co-tenancy Modernization and Majority Protection Act” (see WV Co-Tenancy Bill Survives Challenge, Amended, Final Vote Today). Indeed they did vote, and the bill passed–60 voting for, 40 against. Which is good news for everyone–for drillers AND for rights owners. The bill now goes to the WV Senate for consideration. Here’s an update on yesterday’s vote…
    Read More “Co-Tenancy Bill Passes WV House, Goes to Senate for Final Vote”