Regulation

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    Ohio EPA Continues Campaign to Stop Rover Pipe, Hounds FERC Again

    The Ohio Environmental Protection Agency (OEPA) continues to hound the Federal Energy Regulatory Commission (FERC) about a potential spill of drilling mud by Rover Pipeline near the Tuscarawas River. Last week we told you that OEPA, which has ZERO regulatory oversight of the Rover Pipeline project, had been told (by informants) that when Rover restarted underground horizontal directional drilling (HDD) work at the Tuscarawas site, some 146,000 gallons of drilling mud went down the hole but never came back out (see OEPA Continues to Hunt Rover Pipe, Claims 2nd Spill Near River). In April 2017 Rover experienced an inadvertent return (i.e. spill) of some 2 million gallons of drilling mud at the same location (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Last year’s accident shut down all HDD work for months. It wasn’t until December that FERC allowed Rover to restart HDD work at the Tuscarawas site. After OEPA went blabbing to FERC last week, Rover pushed back by saying there has been no spill or inadvertent return (see Rover Refutes Ohio EPA Claim of 146K Gal. Spill @ Tuscarawas River). We theorize that some (maybe even all 146,000 gallons) of the drilling mud did go down the hole and stayed down the hole. So far it hasn’t come back out, which is not a problem in anyone’s book. OEPA was back at FERC on Friday like an ankle-biting Chihuahua, asking FERC to shut down Rover HDD work because of this unsubstantiated rumor of drilling mud gone missing. Enough is enough! When will FERC slap OEPA around and tell them to back off?…
    Read More “Ohio EPA Continues Campaign to Stop Rover Pipe, Hounds FERC Again”

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    NC Continues to Delay Atlantic Coast Pipe, Rejects Part of Erosion Plan

    North Carolina has a Democrat governor. The state Dept. of Environmental Quality (DEQ) is an executive branch agency. So it’s no surprise to learn that the DEQ is antagonistic toward Dominion Energy’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. In October the DEQ rejected a plan submitted by Dominion for the pipeline project, claiming the erosion and sediment control part of the plan is not up to snuff (see NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?). What’s happened since that time? Dominion resubmitted the plan, and in early January DEQ approved part of the erosion/sediment control plan (for the southern part of the project) but rejected the other part (for the northern part of the project). As we previously pointed out, DEQ is currently playing death by 1,000 questions with Dominion, trying to tie the project up in knots (see NC Plays “Death by a Thousand Questions” with Atlantic Coast Pipe). DEQ’s poor behavior continues. Here’s an update on where things stand, and what Dominion will need to do to get ACP approved in the Tar Heel State…
    Read More “NC Continues to Delay Atlantic Coast Pipe, Rejects Part of Erosion Plan”

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    Adelphia Gateway Pipeline Near Philly Files with FERC

    Adelphia Gateway Pipeline map – click for larger version

    In November MDN shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, had been purchased by a subsidiary of New Jersey Resources and will get converted to flow Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline is called the Adelphia Gateway. Adelphia ran an open season–a period of time when shippers can reserve capacity along the pipeline–and got requests for twice the amount of capacity the pipeline will hold (see Converted Pipeline Near Philly Gets 2X More Interest than Capacity). That was more than enough for NJ Resources to move forward with the project. Last week they filed an official application with the Federal Energy Regulatory Commission (FERC) to convert the existing pipeline to flow natural gas, and add various facilities (like meter stations) along the way…
    Read More “Adelphia Gateway Pipeline Near Philly Files with FERC”

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    Energy Corp of America Fined $1.7M for Drilling Violations in PA

    The Pennsylvania Dept. of Environmental Protection (DEP) has just collected a whopping $1.7 million fine from Energy Corporation of America (ECA) for violations at 17 well sites in Cumberland, Jefferson, and Whiteley Townships in Greene County, and Goshen Township in Clearfield County. ECA’s violations? “Failure to properly contains fluids in onsite pits, unauthorized discharge of industrial waste into groundwater, unauthorized disposal of residual waste, failure to restore the pits and well sites, and operating solid waste storage, treatment, and transfer facilities without permits.” Pretty serious stuff. Essentially, ECA (according to DEP) was sloppy in how they handled flowback and brine, using open pits to store it long after their use was outlawed under new Chapter 78a regulations were adopted. Spills from those pits contaminated a water well of one nearby resident. It’s interesting to MDN that as you read the consent order (full copy below), not only is ECA listed, but also “Greylock Production.” You may recall our news from late last year that ECA reorganized itself under a new name–Greylock Energy–shafting existing shareholders in favor of a new investor, ArcLight Capital (see ECA Sells Marcellus/Utica Assets to ArcLight Capital – Shareholders Shafted). The fine was assessed against and paid by ECA and Greylock jointly, confirming our conclusion that ECA had simply changed the nameplate on the door to Greylock…
    Read More “Energy Corp of America Fined $1.7M for Drilling Violations in PA”

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    Rover Refutes Ohio EPA Claim of 146K Gal. Spill @ Tuscarawas River

    Yesterday we brought you the news that the Ohio Dept. of Environmental Protection (OEPA) had made claims, in a letter to the Federal Energy Regulatory Commission (FERC), that Rover Pipeline’s restart of underground horizontal directional drilling (HDD) near the Tuscarawas River had resulted in a second large spill of drilling mud–146,000 gallons (see OEPA Continues to Hunt Rover Pipe, Claims 2nd Spill Near River). OEPA claims to have spies that told them that while drilling 146,000 gallons of drilling mud had disappeared “down hole.” That typically means the mud will reappear somewhere on the surface. OEPA does not regulate the Rover project–it is a FERC/federally regulated project. And that frosts OEPA’s director, tattletale Craig Butler. Except this time it appears OEPA was mistaken, or perhaps acting on bad information. According to a statement by Energy Transfer, builder of Rover, there has been no “release” or “spill” of drilling mud a second time at the Tuscarawas River site…
    Read More “Rover Refutes Ohio EPA Claim of 146K Gal. Spill @ Tuscarawas River”

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    PA House Advances “Fix DEP & Other Agencies” Plan with 5 Bills

    As part of the Pennsylvania Senate’s misguided and mangled budget bill last year, Republicans managed to slip in fixes to the state Dept. of Environmental Protection’s (DEP) chronic delays in issuing permits related to shale drilling (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). Unfortunately the fixes came out before the final budget passed. Problems remain for Marcellus drillers. Delays are long in the Keystone State when it comes to permits for shale wells. The problems NEED to get fixed, now. In early January, PA House Rep. Greg Rothman introduced a standalone bill to address the problem (see Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits). Rothman’s bill, House Bill (HB) 1959, would give certified third parties the right to review and force the DEP to issue permits when/if the DEP can’t get off it’s duff and do it in a timely manner. Not long after Rothman’s bill was introduced, a second bill was introduced, by State Rep. Brian Ellis (see New Bill Would Force PA DEP to Work WITH the Marcellus Industry). Ellis’ bill, HB 1960, is called the “State Agency Regulatory Compliance Officer Act” and will 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, rather than play gotcha. Those two bills, plus three more, are part of a suite of bills being offered by the PA House “Common Sense Caucus.” The Caucus, headed by Rep. Daryl Metcalfe, released a report yesterday called the 2017-18 Regulatory Overreach Report (full copy below). The report gives examples of egregious regulatory overreach and proposes five bills, including HB 1959 and HB 1960, to fix the problem. Note the Caucus is not just picking on DEP with this proposed fix–they ambitiously want to make all state agencies work better…
    Read More “PA House Advances “Fix DEP & Other Agencies” Plan with 5 Bills”

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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”…
    Read More “Monroeville Pushes Ban on NatGas Activity, Incl. Drilling & Plants”

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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”