Regulation

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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”

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    PA DEP Allows ME2 Underground Drilling to Resume in Chester County

    In what can only be considered a government shakedown, Sunoco Logistics Partners agreed last week 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). So we’re not surprised to learn that a few days later the DEP has magnanimously allowed Sunoco Logistics Partners to resume drilling work in Chester County for ME2–work that had been on hold since last summer (see ME2 Pipe Work in Chester County Creates Water Well Issue for Some). As we reported last year, the water wells for a dozen households in Chester County became cloudy–or lost pressure–after underground horizontal directional drilling (HDD) by Sunoco attempting to install pipes underground in places where digging trenches will not work. Sunoco paid for five families to temporarily stay in local hotels for several nights. Sunoco also provided bottled water for all of the affected families. The working theory is that bentonite clay (i.e. drilling mud) is the source of the cloudiness. Fortunately, bentonite is non-toxic and used to manufacture many products, including toothpaste and kitty litter. Because of the episode in Chester and several locations, the DEP stopped HDD work for the project. Sunoco later cut a deal to continue the work (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Then, all work everywhere for the ME2 project was stopped by the DEP in early January. That is, it was stopped until Sunoco paid the DEP $12.6 million for permission to restart construction. So yes, $12.6 million ought to buy the right to restart HDD drilling in Chester County, as it just has, although the DEP is still holding the threat of “further penalties” over Sunoco’s head as a way of encouraging them to avoid any further drilling mud spills…
    Read More “PA DEP Allows ME2 Underground Drilling to Resume in Chester County”

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    Rover Pipeline’s SWPA Burgettstown Lateral Ready for Startup

    Click map for larger version

    On Tuesday, Rover Pipeline (Energy Transfer Partners) sent an official request to the Federal Energy Regulatory Commission (FERC) asking for permission to begin service on one of the remaining legs of the pipeline not yet up and running as part of Phase 1 development. Rover wants to begin service on the Burgettstown Lateral by Feb. 26. The Burgettstown Lateral (see the map below) extends from Burgettstown (Washington County), PA through Hancock County, WV and into eastern Ohio, connecting to the main Rover Pipeline in Carroll County. The Burgettstown Lateral is 51.3 miles long and includes a compressor station in/near Burgettstown to push the gas along the entire length of the lateral. Rover still maintains they will have the entire Rover Pipeline network up and running by the end of March. There are still some areas in Ohio where they are working (drilling for a second pipeline under the Tuscarawas River), however, most of the work remaining to be done is in Michigan–Phase 2 of the project. When it’s all done, up and running, Rover will flow 3.25 billion cubic feet per day of Marcellus/Utica gas to the Midwest, Gulf Coast and Canada. Below is Rover’s request to “start me up” for the Burgettstown Lateral, along with a map of the lateral…
    Read More “Rover Pipeline’s SWPA Burgettstown Lateral Ready for Startup”

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    WV Co-Tenancy Bill Survives Challenge, Amended, Final Vote Today

    Two days ago we reported that the West Virginia House of Delegates was due to vote on House Bill (HB) 4268, the “Co-tenancy Modernization and Majority Protection Act” (see WV Votes on Co-Tenancy Bill Today; Anti Gets Mouthy, “Dragged” Away). 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 often difficult, if not impossible, to track them all down and get them all to sign on the dotted line. Co-tenancy corrects that situation. A vote by the full House didn’t end up happening on Tuesday, as originally predicted. Amendments to the bill were offered. One of the amendments would have changed the ratio of rights owners who must sign on the dotted line to allow leasing from 75% all the way up to 90%–which isn’t feasible. Fortunately that amendment was voted down 57-40. However, another amendment–to reallocate half of the unclaimed royalties to fund health insurance for public employees including teachers–did pass (50-47). In the original bill 100% of unclaimed royalty revenue was to be used to cap orphan wells. Now the orphans only get half the funding. Perhaps most importantly, an amendment to limit co-tenancy to properties with seven or more rights owners passed 90-6. That amendment is intended to keep WV out of family squabbles, where just a few people own the mineral rights. The now fully-amended, fully-discussed bill is ready for a final final House vote, which is scheduled for today. After the House votes, it’s on to the Senate. Below are reports about the amendment process in the House…
    Read More “WV Co-Tenancy Bill Survives Challenge, Amended, Final Vote Today”

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    PA DEP Wants to Boost Shale Fees 250% to Help Fund Non-Shale Work

    Pennsylvania Gov. Tom Wolf’s Dept. of Environmental Protection (DEP), the agency charged with overseeing oil and gas drilling in the state, “blindsided” the shale industry last week with a proposal to hike the fee required when submitting an application to drill a new shale well (see PA DEP Plans to Raise Marcellus Well Permit Fee by 250%). The current fee is $5,000. The proposed new fee is $12,500–or 2.5 times (250%) higher. The DEP Oil and Gas Technical Advisory Board (TAB) met yesterday to discuss the permit fee increase. It was DEP Deputy Sec. Scott Perry’s job to be the point guy, the spear catcher to stick up for this insane hike in fees. We understand…The DEP has fewer people working there than it once did and needs to hire more. (Although the DEP somehow found half a million bucks lying around to hire 92 interns to help out. See PA DEP’s Short-Term Solution to Get More Help – Hire 92 Interns). PA Gov. Tom Wolf wants to slap a new severance tax on shale drillers to give their money away to Philadelphia teacher’s unions. The DEP (an executive agency, part of the Wolf administration) is taking a page from Wolf’s playbook. The DEP wants to slap this insanely high fee on shale drillers to (in part) cover the expenses associated with non-shale activities. According to the Pittsburgh Post-Gazette: “Mr. Perry said they [shale permit fees] fund the broad scope of the [DEP] office’s operations, including its oversight of traditional [i.e. conventional] oil and gas wells, gas storage wells, abandoned wells and earthmoving activities.” How is it, in any sense, fair to hike the fees of shale drillers so DEP agents can better keep an eye on non-shale wells? Kind of like robbing Peter to pay Paul…
    Read More “PA DEP Wants to Boost Shale Fees 250% to Help Fund Non-Shale Work”

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    Antis Pressure Maryland Gov. Hogan to Reject Pipeline Under Potomac

    Maryland Gov. Larry Hogan

    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 tiny section of pipeline is 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. Anti fossil fuel nutters have been on a rampage to stop the pipeline from going under the Potomac since last summer (see Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement). To hear them talk, you’d think this is the first time a pipeline has been drilled under the Potomac River. However, TransCanada, via its Columbia Pipeline subsidiary, has already built and operates 12 other pipelines that go under the Potomac River–just in the State of Maryland! Have you ever heard a peep about those pipelines and an environmental holocaust they’ve created? No. Why? Because putting a pipeline under a river is no big deal. It doesn’t harm the environment. Yet that’s what antis are claiming and will claim in a protest march today, aimed at pressuring the weak-willed Republican Governor of Maryland, Larry Hogan, into blocking this tiny, 3.5 mile project…
    Read More “Antis Pressure Maryland Gov. Hogan to Reject Pipeline Under Potomac”

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    Kentucky Antis File Lawsuit to Stop TGP NGL Pipe Reversal

    Kentucky antis have gone to court to try and block a plan by Kinder Morgan to convert a portion of the Tennessee Gas Pipeline that flows natural gas from the Gulf Coast to the northeast, to reverse the pipeline and flow natural gas liquids from the Marcellus/Utica region to the Gulf. Part of the 964-mile project runs through Kentucky (see KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South). The first step in the reversal process was approved by the Federal Energy Regulatory Commission last October (see FERC Advances Plan to Reverse Part of TGP to Haul M-U NGLs to Gulf). Antis in Kentucky got their bluegrass knickers in a twist over FERC’s action. They filed a request for “rehearing” of FERC’s decision, which is the first step in a process that typically ends up in court. First the “aggrieved party” (antis are in a perpetual state of being aggrieved) must request a rehearing. If FERC denies the rehearing request, antis (Big Green groups with deep pockets representing them) then file a lawsuit in federal Appeals Court to try and stop FERC from continuing to approve the project. Normally FERC has 30 days to decide on a rehearing, however, they have a little tactic they call a “tolling order” which allows them to extend the amount of time to make a rehearing decision–indefinitely. FERC pulled out the tolling order card and played it with the TGP project last November (see FERC Frustrates Kentucky Radicals Seeking to Stop TGP Pipe Reversal). The antis aren’t waiting. They’ve just filed a lawsuit challenging the FERC tolling order. Here’s the latest from the enviro nuts in the Bluegrass State…
    Read More “Kentucky Antis File Lawsuit to Stop TGP NGL Pipe Reversal”

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    More on Unintended Consequences for Pipelines from Trump Tax Cut

    As we reported last week, President Trump’s marvelous tax cut has had some unintended (negative) consequences for pipeline companies (see Trump Tax Cut has Unintended Consequences for Pipeline Projects). Trade groups and some states are pressuring the Federal Energy Regulatory Commission (FERC) to force pipeline companies to cut the rates they charge customers in light of the Trump tax cut. The corporate tax rate is going from 35% down to 21%. When pipelines file rate cases for how much they will charge customers to flow gas (or oil or whatever else) through the pipeline, part of the calculation for what FERC allows them to charge is based on profitability. Since pipeline companies will now be a whole lot more profitable (tax payments going down), the customers using those pipelines want the rates recalculated to reflect the savings. In other words, they want part of the tax savings too. But the pipeline companies say they have duly signed contracts in place. You can’t just rework a single portion of those contracts with the sweep of a pen. What about other components in the contract that are used in calculating prices? In some (many?) cases pipeline companies have borne *increased* costs that are not passed along to customers. If the customers (mainly utility companies) want FERC to adjust rates now, based on the Trump tax cut, they may not like how those rates get adjusted considering all the other factors that could/should be changed. Maybe they’ll go up instead of down! As we said last week, a trouble is brewing between utilities and the pipelines that feed them. Here’s more background and insight into the brewing trouble…
    Read More “More on Unintended Consequences for Pipelines from Trump Tax Cut”

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    FERC Grants MVP OK to Begin Pipeline Construction in Virginia & W.V.

    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: Wetzel, Harrison, Doddridge, Lewis and Braxton 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 late last week when FERC began issuing what is (so far) four new orders. The new orders grant MVP permission to continue not only tree clearing and building roads, but also to begin construction of the actual pipeline itself. That is, digging trenches and laying steel in the ground–not only in WV, but also in Virginia. Construction is now under way in multiple counties in both states. We lay out where MVP is getting built, and what activities are now green lighted by FERC, below…
    Read More “FERC Grants MVP OK to Begin Pipeline Construction in Virginia & W.V.”

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    ME2 Pipeline’s $12.6M Shakedown Money Won’t Pay for Cleanup

    Last week MDN brought you the news that Sunoco Logistics Partners had 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). Supposedly Sunoco’s ME2 construction activities have 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. Every single penny is going to other pockets (black holes) within the DEP, proving our contention that this was nothing more than a shakedown by a government agency. Essentially Sunoco had to pay DEP mobsters a “bribe” in order to restart work on the ME2 project. The DEP had Sunoco by the short hairs, blocking any new work until the money was paid. So what about “cleaning up” the problems created by ME2 construction? “[I]t’s highly likely that Sunoco will be required to clean up the damage caused by its botched construction, in addition to paying the penalty,” according to a former DEP Secretary. If that doesn’t beat all. Fine them AND make them pay even more for the cleanup. Welcome to doing business in Pennsylvania…
    Read More “ME2 Pipeline’s $12.6M Shakedown Money Won’t Pay for Cleanup”

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    Big Green Targets PA Marcellus via DEP Water Quality Review

    The efforts by radical environmental groups like THE Delaware Riverkeeper and PennFuture to try and shut down the Marcellus industry in Pennsylvania never stop. Like ocean waves that continue to crash into the shoreline, Riverkeeper and PennFuture constantly, regularly, launch new initiatives aimed at hassling, slowing, stopping and reversing the Marcellus industry. Sometimes (often) their efforts are focused on filing frivolous lawsuits. Sometimes it’s a publicity stunt/protest. And sometimes they take aim at regulatory bodies, like the PA Dept. of Environmental Protection (DEP). It is that last one that is the focus of a new campaign to stifle the Marcellus industry. Every three years the DEP conducts a review of water quality standards. Riverkeeper and PennFuture have put the call out to their radical faithful to inundate the DEP with public comments (due by Feb. 16) to create new regulations that will “protect” PA streams “from impacts like brine gas drilling wastewater” and “road salt applications in the winter”–perfectly safe salt that comes from processed wastewater. In other words, this is yet another attempt to shut down the drilling industry by neutering its ability to properly dispose of brine wastewater…
    Read More “Big Green Targets PA Marcellus via DEP Water Quality Review”