Regulation

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    Canada Rejects Discounted Rates for U.S. Shale Gas to New Brunswick

    Maritimes and Northeast Pipeline map – click for larger version

    The Maritimes and Northeast Pipeline (M&NP) runs from Goldboro, Nova Scotia through Nova Scotia and New Brunswick to the Canadian – U.S. border near Baileyville, Maine. The pipeline continues through Maine and New Hampshire into Massachusetts where it connects with the existing North American pipeline grid at Dracut, Massachusetts. It used to be that offshore natural gas from Nova Scotia fed the pipeline, which ran from north to south. But those offshore fields are running low, and the Marcellus/Utica appeared. These days the M&NP runs from south to north–at least part of the system does. One of M&NP’s big customers is Irving Oil, with a refinery and cogeneration (natgas-fired) power plant in Saint John, New Brunswick. Irving is an M&NP customer. However, another pipeline company offered to build a new pipeline to feed Irving Oil’s operations with natural gas, at discount. M&NP said that’s crazy. They want to keep Irving as a customer, so they cut a deal with Irving to import natural gas from the U.S. (in all likelihood, Marcellus/Utica gas), flowing the gas from the Maine border to St. John and Irving’s operation there. The only thing standing in the way is the Canadian National Energy Board (NEB)–which is kind of like our own Federal Energy Regulatory Commission (FERC). The deal offered by M&NP requires NEB approval because it lowers the toll (fee charged) and changes directions to import/flow U.S. gas to Irving. Last week the NEB rejected M&NP’s plan, saying the plan is “premature” because the Maritimes region is facing a period of uncertainty. It is not clear (to the NEB) where natural gas will ultimately come from, and what the market actually needs. Offshore? Canadian fields? Import from U.S.? It’s not yet clear how it will all shake out. So the NEB turned down M&NP’s request. What happens now?…
    Read More “Canada Rejects Discounted Rates for U.S. Shale Gas to New Brunswick”

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    Swamp Fights Back: NRDC Gears Up to File Multiple Lawsuits vs EPA

    Big Green leftists HATED President Richard Nixon (frankly, they hate any/every Republican before and since). They hated Nixon even though he created the Environmental Protection Agency (EPA). Did you know that Nixon created the EPA? And now the EPA’s first-ever Secretary, William Ruckelshaus (a card-carrying member of the swamp dweller’s club) is criticizing current EPA Sec. Scott Pruitt for returning the EPA to its roots–to clean up superfund sites and target polluters. Pruitt has pledged to roll back EPA’s cancerous expansion under Obama, with its wild attempt to regulate anything and everything under the excuse of trying to prevent man-made global warming. Why are we not surprised that a has-been like Ruckelshaus is criticizing Pruitt? Ruckelshaus isn’t the only swamp dweller who hates Pruitt (and yes, hate is the accurate word to use). The National Resources Defense Council (NRDC), one of the worst of the worst so-called environmental groups, recently said it is gearing up to launch dozens (!) of lawsuits against the EPA and Pruitt. NRDC is part of the Washington, D.C. swamp. It seems the swamp doesn’t like getting drained and is fighting back. That’s OK. President Trump loves a good fight. It’s about time somebody took the fight to unelected, Big Government-loving nongovernmental organizations like NRDC. Rather than taking something away, Trump and Pruitt are trying to return the EPA to its original mandate. Make no mistake. At it’s core this is a fight about fossil fuels. Big Green disastrously wants to kill the use of fossil fuels–NOW. Here’ a look at how the swamp is fighting back against Trump’s efforts to drain it…
    Read More “Swamp Fights Back: NRDC Gears Up to File Multiple Lawsuits vs EPA”

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    PHMSA Issues Notice of Probable Violation to ME2 Pipeline in Ohio

    In early January, the Pennsylvania Dept. of Environmental Protection (DEP) told Sunoco Logistics Partners to suspend all work on the $2.5 billion Mariner East 2 (ME2) NGL pipline–from one side of the state to the other (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). No further digging of trenches, and no more underground horizontal directional drilling (HDD) work can be done “until Sunoco can demonstrate that the permit conditions can and will be followed.” The concern is that ME2 work is violating multiple permits, regulations and court-ordered restrictions. However, not ALL work was stopped. As we learned a week later, the DEP does not control and regulate everything–only the parts where dirt is moved (see Work on Mariner East 2 Continues Following “Stop Work” Order). There’s still work being done, like welding pieces of pipeline together, even today. Often overlooked in the ME2 project is the small part of the pipeline that crosses the border into Ohio. The PA DEP’s stop work order (and regulatory authority) does not extend there. The pipeline in Ohio is regulated by the federal Pipeline and Hazardous Materials Safety Administration (PHMSA). Just coming to light now is a “Notice of Probable Violation” for ME2 in Ohio, issued by PHMSA on Jan. 11th. A PHMSA inspector noticed scrapes, coating damage and a “gouge” that extended into the pipe wall. Chance are none of it makes a hill of beans worth of difference. However, given the pipeline will flow “flammable” natural gas liquids (primarily ethane and propane), anything but a 100% standard of perfection gives antis an excuse to call for a halt to the project, both in Ohio and in PA, which they’re doing…
    Read More “PHMSA Issues Notice of Probable Violation to ME2 Pipeline in Ohio”

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    Analysts Speculate Rover Pipe Will be Delayed Following FERC Order

    Yesterday MDN brought you the news that the Federal Energy Regulatory Commission (FERC) has slapped a stop work order on underground horizontal direction drilling (HDD) for Rover Pipeline at the site crossing under the Tuscarawas River (see FERC Stops Rover Drilling Near River After 200K Gal Mud Disappears). There is tough geography in that area. In April 2017, Rover lost approximately 2 million gallons of nontoxic drilling mud at that location, mud which leaked out of the hole and onto the ground (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). That accident caused a shutdown of all Rover HDD work in Ohio. Work eventually resumed (last year). Work at the Tuscarawas location didn’t resume until last December (see FERC Gives Rover OK to Resume All HDD Work, Incl. Tuscarawas River). But now Rover has lost another ~200,000 gallons of drilling mud in the Tuscarawas borehole. Hence the FERC order. Energy Transfer Partners, the builder of Rover, maintains the entire Rover project will be completed by the end of March. Given the new stop work order with no apparent resolution in sight for how ET plans to overcome the problems at Tuscarawas, industry analysts are now speculating that Rover will not be done by the end of March, as advertised…
    Read More “Analysts Speculate Rover Pipe Will be Delayed Following FERC Order”

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    PA DEP, DCNR on Hot Seat to Defend Budget Surpluses

    Last September, amidst a heated state budget battle in Pennsylvania (where the phrase “severance tax” was on the lips of every Democrat and RINO in Harrisburg), a group of PA House Republicans did the hard work Gov. Tom Wolf and his cronies in the legislature refused to do: They figured out how to fund a wildly overspent budget without raising a single tax (see PA House Introduces Balanced Budget with NO Severance Tax). How did House Republicans do it? They looked at state agencies hording money, with a plan to relieve them of their surplus. When Republicans went looking, they found even the Dept. of Conservation and Natural Resources (DCNR) and Dept. of Environmental Protection (DEP) have been squirreling money away, unused in some of their programs. The House Republican plan from last September was not adopted, but elements of it were included in the final budget. The final budget, passed in October, instructs Gov. Wolf to reallocate $300 million from surpluses at various state agencies–from the agencies of his own choosing–as part of the “funding” for this year’s budget. The House Appropriations Committee held a meeting yesterday to question DCNR Sec. Cindy Dunn and DEP Sec. Pat McDonnell about the use and operation of special funds under their purview–to see if there’s a bit of surplus there that can be used for the state budget. Here’s how it went…
    Read More “PA DEP, DCNR on Hot Seat to Defend Budget Surpluses”

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    SWPA Antis Breathe New Life into Old Zoning Lawsuit

    In November 2015 MDN reported on a zoning court case in Westmoreland County, PA (see 3 Western PA Antis Weigh Appeal of Court Ruling in Zoning Case). Three ladies brought a lawsuit against Allegheny Township because the town approved a permit for CNX Gas–to drill a well on a farm owned by John and Anne Slike. Since the farm is about 1,200 feet from where the ladies live, they objected. The legal argument is interesting. They use the Robinson case decision (Act 13) which ruled that towns have the right to limit/restrict drilling based on zoning ordinances–as long as there’s at least one zone where drilling can take place. The problem (for antis) is that sometimes towns decide the other way–to allow drilling in any zone with a special use permit. The door swings just one way for antis–no drilling. At any rate, we thought the case was long over with. But it’s not. The ladies and their fractivist lawyer appealed. The case is now in Commonwealth Court and, according to an article, because of a recent PA Supreme Court decision, new life has been breathed into the case. The antis are celebrating…
    Read More “SWPA Antis Breathe New Life into Old Zoning Lawsuit”

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    Low Turnout for Philly DRBC Frack Ban Hearing, Antis Dominate

    Philadelphia is the sixth most populous city in the United States, with over 1.5 million residents. And yet *maybe* 120 people turned out yesterday for a Delaware River Basin Commission (DRBC) hearing on their proposed plan to permanently ban fracking in the Delaware River Basin. A pair of hearings were held earlier this week in rural northeast PA–in Waymart–where the turnout was upward of 150 people! Judging from the wild claims by green groups like THE Delaware Riverkeeper that thousands (millions!) of people don’t want fracking in the river basin, you’d think more than maybe 120 people would turn up for a hearing in a city like Philly. Could it be not all that many people in southeast PA give a hoot about fracking in two northeastern PA counties? That thought crossed our minds as we read the accounts of those who showed up at yesterday’s meetings in Philly. Yes, antis outnumbered those in favor of fracking, but that’s to be expected in Philly. Here’s a recap of yesterday’s meetings…
    Read More “Low Turnout for Philly DRBC Frack Ban Hearing, Antis Dominate”

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    FERC Stops Rover Drilling Near River After 200K Gal Mud Disappears

    The Ohio EPA continues its yapping insistence that the Federal Energy Regulatory Commission (FERC) *permanently* shut down underground horizontal directional drilling (HDD) work being done by Rover Pipeline near the Tuscarawas River over concerns that nontoxic (totally safe) drilling mud keeps disappearing down the borehole. FERC listened, sort of. In an order dated yesterday, FERC told Rover to *temporarily* stop HDD work at Tuscarawas until Rover can outline a plan for moving forward that FERC has confidence will address concerns over the disappearing drilling mud. When mud used for drilling holes comes out on the surface any place other than the hole from which it went down, it’s called an “inadvertent return.” We call it a leak. However, if that same mud never comes back to the surface, as sometimes happens, it’s fine. Except when it’s a LOT of mud, as is the case in drilling near Tuscarawas where a cumulative 200,000 gallons of it have disappeared down hole, not (so far) coming back out. Sooner or later it seems likely that at least some of that mud will come back to the surface–somewhere. That’s the concern that no doubt prompted FERC to send Rover a letter yesterday telling them to (for now) stop HDD work at Tuscarawas…
    Read More “FERC Stops Rover Drilling Near River After 200K Gal Mud Disappears”

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    Riverkeeper Gears Up to Fight PennEast in Court via FERC Requests

    That didn’t take long. We knew it wouldn’t. Last Friday the Federal Energy Regulatory Commission (FERC) gave its full, final approval for the PennEast Pipeline project, 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. (see FERC Grants Final Approval for PennEast Pipe – Real Battle Begins). Yesterday THE Delaware Riverkeeper, a radicalized Big Green group, filed two requests with FERC: (1) a motion to “rehear” (i.e. reconsider) their decision to approve PennEast, and (2) a motion to block any construction on PennEast until the motion to rehear has been decided. As Riverkeeper plainly states on their website, “A Rehearing Request must be submitted and denied before a legal challenge in court can be pursued.” A court challenge is, of course, the strategy. Asking FERC to rehear the decision is nothing more than going through the motions, jumping through the necessary hoops. A huge side benefit for Riverkeeper with FERC’s decision to approve PennEast is that the opposition to the project can be leveraged as a big fundraiser for Riverkeeper: “Help us stop the big, bad pipeline. Donate here!” Below is Riverkeeper’s press release (i.e. fundraiser) about their plan to challenge FERC approval, along with their FERC filings from yesterday…
    Read More “Riverkeeper Gears Up to Fight PennEast in Court via FERC Requests”

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    Mountain Valley Pipe Gets FERC Approval to Begin WV Construction

    MVP Map – click for larger version

    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, has just 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. The work will be allowed only where MVP has already obtained leases from landowners. This is the first actual construction to be authorized for the project, a milestone! MVP was approved last October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). However, five national anti-fossil fuel groups filed a lawsuit two weeks ago to try and stop the project (see 5 Radical Green Groups Sue to Stop Mountain Valley Pipeline). Let ’em try! Here’s the great news that even as you read this, it’s quite likely the chainsaws are up and running…
    Read More “Mountain Valley Pipe Gets FERC Approval to Begin WV Construction”

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    Recap from First Hearings Held on Proposed DRBC Frack Ban

    Yesterday saw the first two of six public hearings held by the Delaware River Basin Commission (DRBC) on their plan to permanently ban fracking in the Delaware River Basin. The hearings were held in Waymart (Wayne County), PA. The DRBC frack ban would essentially ban shale drilling in two northeastern PA counties: Wayne and Pike. Landowners there have been battling the DRBC going on 10 years. At first it was a temporary ban (like New York’s). Now it has metastasized into a full blow permanent ban–if DRBC gets its way. Below we have two reports–one from mainstream media, the other from MDN friend Tom Shepstone, who hilariously was called “Crapstone” by an anti addressing one of the hearings. You know you’re being effective when they start calling you silly names! Tom said it was landowners versus special interest group groupies at both hearings. Here’s an update on what happened…
    Read More “Recap from First Hearings Held on Proposed DRBC Frack Ban”

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    Big Green Files Lawsuit Against VA Regulators for Approving Pipe

    In December members of Virginia’s Water Control Board voted 4-3 to approve issuing a water permit/certification for the Atlantic Coast Pipeline (ACP) project (see Atlantic Coast Pipeline Delayed in Virginia by Water Board Vote). ACP is a $5 billion natural gas pipeline project from West Virginia through Virginia and into North Carolina being built by Dominion Energy and Duke Energy. The Water Board’s approval was conditional, the condition being that approval “is dependent on a final review of several environmental studies.” Those studies won’t be done until March or April of this year, meaning in all likelihood the project will be delayed. You would think Big Green groups would have rejoiced at the Water Control Board’s decision, effectively delaying the project. But they didn’t. Instead, a coalition of groups filed a lawsuit late last week against the Water Control Board–for doing their jobs. The groups claim the Water Control Board and the Virginia Dept. of Environmental Quality (DEQ) have not done a good enough job of protecting Virginia’s water resources with respect to the ACP project…
    Read More “Big Green Files Lawsuit Against VA Regulators for Approving Pipe”

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    PA Supremes to Consider EQT Request to Drill Well in Jefferson Hills

    In December 2015 MDN told you about EQT’s application to drill a single shale well in Jefferson Hills (Allegheny County), PA (see Jefferson Hills, PA Antis Oppose EQT Well Near Future School Site). The well would be drilled “near” where a new school is due to be built, which generated vigorous local opposition. As part of the a conditional use permit, EQT agreed to (a) not use Borough roads during construction, (b) use a pipeline from a local water company instead of trucks for the water needed to drill and frack, greatly reducing the amount of truck traffic, (c) pledged the project would not impact local streams and wetlands, (d) comply with local lighting regulations, and (e) install sound walls if needed. In other words, EQT bent backwards, forwards, sideways, jumped through numerous hoops and turned itself inside out to comply with requests from the town. The Borough Planning Commission unanimously approved the conditional use permit request. But then the town, bowing to pressure from residents, rejected the request in December 2015, saying the proposed project would endanger local health and the environment. EQT sued and won in the Court of Common Pleas of Allegheny County in June 2016. Jefferson Hills appealed and in May 2017, the Commonwealth Court of Pennsylvania upheld the EQT verdict saying the town arbitrarily rejected the permit and EQT should be allowed to drill (see PA Appeals Court Clears Way for EQT to Drill Jefferson Hills Well). Jefferson Hills appealed it all the way the PA Supreme Court and on Monday the court agreed to hear the case…
    Read More “PA Supremes to Consider EQT Request to Drill Well in Jefferson Hills”

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    U.S. Supreme Court Changes Jurisdiction for WOTUS Challenges

    WOTUS is, unfortunately, far from dead. In May 2015 the Obama rogue Environmental Protection Agency (EPA) along with the Obama U.S. Army Corps of Engineers (USACE) released a finalized rule clarifying what “Waters of the United States” (WOTUS) means vis a vis what can be regulated under the federal Clean Water Act (see EPA Power Grab: Redefines Waters of the U.S. to Include Everything). Essentially the rule change redefined everything down to mud puddles (no, we’re not exaggerating) as being subject to the federal Clean Water Act. It was yet another attempt to bring oil and gas regulation under the purview of the federal government, a violation of the U.S. Constitution. In October 2015, a federal judge stopped WOTUS from going into effect while it’s litigated (see Sixth Circuit Court Stops EPA from Implementing WOTUS Anywhere). Eventually 31 states along with other entities filed briefs with the 6th U.S. Circuit Court of Appeals opposing the rule (see 31 States Ask Court to Dump Obama WOTUS Rule as Unconstitutional). A number of Senators and Congressmen joined the lawsuit. When President Trump took office and nominated Scott Pruitt (who had fought against WOTUS as Oklahoma Attorney General) to head the EPA, we thought that was the end of WOTUS. Pruitt pledged to roll back the onerous, hideous overreach of the Obama EPA (see Free at Last! EPA, US Army Corps Rescind Obama WOTUS Rule). Except that has not (so far) happened. Because of legal wrangling, Pruitt must take two years to develop a replacement for the destructive version of WOTUS–and in the meantime, the Obama version of WOTUS (sadly) remains in effect. Lawsuits against it continue to be litigated. It was into that fray the U.S. Supreme Court entered and recently ruled, unanimously, that the proper courts to review WOTUS are the District Courts and not the Courts of Appeal. Which is an important change. Here’s why…
    Read More “U.S. Supreme Court Changes Jurisdiction for WOTUS Challenges”

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    Atlantic Coast Pipeline Begins Cutting Trees in WV & VA (Not NC)

    In December MDN told you that Dominion’s $5 billion Atlantic Coast Pipeline (ACP) project had asked permission from the Federal Energy Regulatory Commission (FERC) to begin clearing trees along the path of the pipeline in all three states where the pipeline will run: West Virginia, Virginia, and North Carolina (see Atlantic Coast Pipe Asks FERC to Begin Tree Cutting in WV, VA, NC). FERC approved the project last October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). However, two of the three states–Virginia and North Carolina–have not yet given final water crossing permits for the project (see Atlantic Coast Pipeline Delayed in Virginia by Water Board Vote and NC Plays “Death by a Thousand Questions” with Atlantic Coast Pipe). Lack of water crossing permits isn’t stopping ACP, nor FERC. Last Friday FERC granted ACP permission to begin felling trees, and the chainsaws have been busy over the weekend–at least in WV and VA (not yet in NC). The clock is ticking. Because of cockamamie Obama regulations, clearcutting of trees along the path for a pipeline (or roadway, or whatever) is banned from April 1st through October 31st, in an effort to protect the “endangered” northern long-eared bat (see Marcellus/Utica Drillers Ask for Special Permit to Kill Some Bats). ACP will be busy between now and March 31st cutting down trees to prepare for laying pipe…
    Read More “Atlantic Coast Pipeline Begins Cutting Trees in WV & VA (Not NC)”

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    WV Co-Tenancy Bill Picks Up Support from Landowner Group

    It’s looking more and more like co-tenancy legislation will pass this year in West Virginia (see Co-Tenancy Front and Center for WV Legislature as Session Nears). What is co-tenancy? It is legislation that will give a majority of rights owners of a property the authority to sign a lease on behalf of all the rights owners. It corrects a situation in which multiple rights owners are 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 to sign on the dotted line. Co-tenancy corrects that situation, opening up more Marcellus and Utica acreage that can be drilled. The main oil and gas associations in WV are pushing hard for it. Very importantly, the West Virginia Royalty Owners Association is giving its guarded blessing to the effort. About the only group still outright opposing it is the West Virginia Surface Owners Organization. They risk not having a seat at the table to influence the final version of the bill by their ongoing opposition. The co-tenancy train has already left the station and is picking up steam. The time is now to weigh in if you want to have a say in the bill that (we predict) WILL get passed–as long as legislators keep it “clean” and don’t lard it up with other stuff, like “joint development”…
    Read More “WV Co-Tenancy Bill Picks Up Support from Landowner Group”