Regulation

Industrywide Issues | Ohio | Regulation | Statewide OH

Ohio EPA Tries to Repair Recent Bad Blood with Open House
October 23, 2017October 23, 2017

Last week the Ohio Environmental Protection Agency (OEPA) held a “first-of-its-kind” oil and gas open house to discuss communication between the agency and the oil and gas industry. Which is kind of interesting considering Craig Bulter, the head of OEPA, is no glittering example of communication. He’s been talking with Rover Pipeline people, saying one thing in private, and another in public (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). But Butler wanted to paper over his actions-that-speak-louder-than-words, and the industry played along, participating in last week’s meeting. After all, what can they do? OEPA has the power to really screw with the Utica industry. Best to keep the emperor happy. Fortunately OEPA is more than just one man. There are, by accounts from a report coming from the meeting, good people who work in OEPA–people who are actually interested in good communication between regulators and regulatees…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

FERC Allows Rover to Restart HDD Work in 2 More OH Locations
October 23, 2017October 23, 2017

Permission granted grunge rubber stamp on white, vector illustration

Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that (will eventually) run from PA, WV and eastern OH through OH into Michigan and on to Canada–began flowing natural gas through a large portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Since then, Phase 1A of the pipeline has steadily increased its throughput and now flows over 1.2 billion cubic feet per day (Bcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH (see Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor). However, it could flow more, if the Federal Energy Regulatory Commission (FERC) would lift its considerable boot off Rover’s neck and let them finish Phase 1B pipeline work in eastern Ohio to feed more gas to the main part of the pipeline. The problem is that Rover had early missteps, the most serious of which spilled 2 million gallons of non-toxic drilling mud in a swamp (i.e. “wetland”) near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). An investigation by the Ohio Environmental Protection Agency (OEPA) found the presence of diesel fuel in the drilling mud, which means the mud wasn’t so non-toxic after all. Rover believes sabotage may have been the cause. From April until mid-September, FERC blocked all new underground HDD work for the Rover project. That changed when FERC allowed Rover to restart HDD work at nine locations in September (see FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes). Late last week FERC issued permission for another two Rover HDD locations to restart work. No, the Tuscarawas River site is not one of them. That investigation continues…
Read More “FERC Allows Rover to Restart HDD Work in 2 More OH Locations”
Industrywide Issues | Litigation | Pipelines | Regulation | Statewide WV | West Virginia

Court Backs WVDEP Move to Cancel Permits for Mountain Valley Pipe
October 20, 2017October 20, 2017

In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit 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, VA (see WV DEP Grants Mountain Valley Pipeline Water Crossing Permit). In June, a group of profoundly radical “environmental” organizations (Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network) filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit against the WVDEP for doing their job issuing the permit (see Radicals File Lawsuit Against WV DEP for Approving MV Pipeline). Because of the pressure of that lawsuit, the WVDEP caved and reversed their decision in September, rescinding (called “vacating”) the permit for MVP (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). The WVDEP said they will “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” On Tuesday, the 4th U.S. Circuit Court of Appeals upheld WVDEP’s decision and granted the agency’s motion to invalidate the previous certificate they granted the project. Which means the process begins all over again–a temporary victory for antis. It’s temporary because while all of this nonsense was going on, the Federal Energy Regulatory Commission approved the project–so it will get built…
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Baker Hughes | Energy Services | GE Oil & Gas | Industrywide Issues | M&A | Regulation

US DOJ Demands Payments from GE re Unsold Water Biz
October 20, 2017October 20, 2017

In July, GE Oil & Gas completed its merger/buyout of oilfield services giant Baker Hughes (see Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.). As is typical in these kinds of megamergers, governmental agencies that review the deal make the deal contingent on certain requirements. In the case of GE/Baker Hughes, the U.S. Dept. of Justice demanded GE sell its Water & Process Technologies business. GE agreed, and lined up a buyer (Suez, a French waste and water group). However, the deal has not happened (yet), and because there is a delay in making it happen due to “various administrative challenges,” the DOJ is demanding GE make DAILY payments–to the DOJ–as an “incentive” to get the deal done. The amount of the payments is unspecified. Where will all that money go? We don’t know, but we can certainly imagine. What do swamp-dwellers do with free money?…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty
October 19, 2017October 19, 2017

As predicted earlier this week, yesterday the Pennsylvania House Finance Committee voted to approve a 3.2% severance tax on top of the existing 5%+ impact tax (see RINOsaur DiGirolamo Says Vote on PA Severance Tax Coming Soon). Democrats and mainstream media are nearly orgasmic–this is as far as any severance tax bill has ever gotten in PA. The bill, House Bill (HB) 1401, now goes to the full House for a vote–maybe. It remains to be seen whether or not House Speaker Mike Turzai will allow a vote in the full House. There are procedural ways to tie up the bill. While it’s a crap shoot as to whether or not the full House would pass a Marcellus-killing severance tax, there is a section in HB 1401 that is sure to kill the bill–a guaranteed minimum royalty for landowners of 12.5%. Don’t get us wrong–we think the minimum royalty issue is very important and deserves a vote. PA Rep. Garth Everett has championed the issue, introducing a bill to accomplish that objective three times in the last six years (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). No doubt HB 1401’s chief sponsor Gene DiGirolamo (RINOsaur from the Philadelphia area) is hoping to gain support from landowners for the severance tax by grafting on the minimum royalty provision–in the style of Dr. Frankenstein’s monster. Take a body part here (severance tax) and a body part there (guaranteed minimum royalty), sew it together (HB 1401) and shock it into life with a vote. Landowners should beware of this ruse. The minimum royalty issue needs to be addressed separately, on it’s own, and not part of a severance tax bill…
Read More “PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Hears Arguments on DEP Request to Unblock Regs
October 19, 2017October 19, 2017

PA Supreme Court Justices

In October 2016, after five years in the making, Pennsylvania adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf Administration. Wolf’s people mangled the regulations under the Dept. of Environmental Protection (DEP) Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). The judge agreed to “temporarily” block some of the items in the MSC list (see PA Judge Temporarily Blocks Some DEP Chapter 78a Drilling Regs). In December, the DEP escalated the case by asking the PA Supreme Court to undo the block on those regulations imposed by the lower Commonwealth Court (see PA DEP Asks Supreme Court to Overturn Stay on New Regs). Yesterday the Supremes heard oral arguments in the case. Although one activist justice (Sallie Updyke Mundy) seems to want to grant the DEP’s request to allow the stopped rules from going into effect, several other justices appear to want to let the issue play out in the lower Commonwealth Court, preferring to goose the lower court into speedier action…
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Berks County | Electrical Generation | Industrywide Issues | Pennsylvania | Regulation

PA DEP Public Hearing on Japanese Gas-Fired Elec Plant in SEPA
October 19, 2017October 19, 2017

EmberClear Corp. (and its parent Ember Partners) is a Canadian-based company that builds and operates natural gas-fired electric generation plants in North America. In 2015, EmberClear filed an application to build a new 488-megawatt natural gas-fired electric plant in Birdsboro, in Berks County, near Philadelphia (see New NatGas-Fired Electric Plant Coming Near Philadelphia). In April of this year, two different Japanese companies, Sojitz Corporation and Tokyo Gas, each purchased a one-third share ownership of the project (see Japanese Now Own 2/3 of Marcellus-Powered Electric Plant in SEPA). We call the Birdsboro project a “Japanese-owned” project, which it is, but in reality EmberClear is still the company building and operating it. The PA Dept. of Environmental Protection (DEP) has just announced they will hold a public hearing on the project, to consider issuing both a water permit and an erosion/sediment control permit for the project. The hearing will be on Nov. 2 in Birdsboro…
Read More “PA DEP Public Hearing on Japanese Gas-Fired Elec Plant in SEPA”
Albany County | Electrical Generation | Industrywide Issues | New York | Regulation

Public Hearing Next Wk on Albany, NY Fracked Gas-Fired Electric Plant
October 19, 2017October 19, 2017

In May MDN brought you the news that New York Gov. Andrew Cuomo had announced plans to construct a new “state-of-the-art, locally-sourced mini-power grid” that will connect to the statewide electric grid but will also be able to operate independently, to power the Empire State Plaza in Albany–a complex of buildings in downtown Albany housing much of New York State government (see NY Gov Cuomo Building New Fracked Gas Elec Plant to Power Albany!). The energy-efficient microgrid will supply 90% of the power for the 98-acre downtown Albany complex, and is expected to save the Plaza more than $2.7 million in annual energy costs. The project will also remove more than 25,600 tons of greenhouse gases from the atmosphere each year–the equivalent of taking more than 4,900 cars off the road–supporting New York’s goal to reduce emissions by 40 percent by 2030 from 1990 levels. The fuel that will power this engineering marvel? Fracked shale gas from the Pennsylvania Marcellus Shale. Yep. Cuomo is a disgusting hypocrite. He won’t allow pipelines to bring in fracked gas, but he’s building a microgrid to power state government that uses that same fracked gas. Next Wednesday, Oct. 25, the NY State Power Authority and the Office of General Services will host a public information meeting to discuss the microgrid. There will no discussion of IF the plant gets built because Dictator-in-Chief Cuomo has decreed it. The meeting will be to parcel out details to the hoi polloi, so the little folk know what to (shut up and) expect…
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Industrywide Issues | Pipelines | Regulation

FERC Chairman Neil Chatterjee Pledges Faster Pipeline Approvals
October 19, 2017October 19, 2017

Neil Chatterjee

Newly minted chairman of the Federal Energy Regulatory Commission (FERC), Neil Chatterjee, made his first public appearance on Tuesday since being sworn in last August. Chatterjee addressed the Energy Bar Association’s 2017 Mid-Year Energy Forum in Washington, DC. Among some of Chatterjee’s choice comments, he said he wants to “significantly reduce” the amount of time it takes to review and issue certificates for natural gas pipelines. He also said he “strongly disagrees” with fellow FERC commissioner Cheryl LaFleur’s vote against authorizing the Atlantic Coast Pipeline and Mountain Valley Pipeline projects. In an extensive presentation, Chatterjee laid out his priorities, which he said is not a “drastic change” from the work done by FERC in previous years. Here is a revealing look into the thinking of Chatterjee, and what lies ahead in the coming months (and years) at FERC…
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Brooke County | Electrical Generation | Industrywide Issues | Regulation | West Virginia

WV Builder Tells PSC Power Plant Can Burn Methane AND Ethane
October 18, 2017October 18, 2017

Energy Solutions Consortium, aka the father and son team of Andrew and Matthew Dorn–have been trying to build a 750 megawatt natural gas-fired electric plant in Follansbee (Brooke County), WV for years. In fact, the Dorns have a number of gas-fired electric plant projects on the board for WV, and have since 2015 (see Big News: 3 More Marcellus-Powered Electric Plants Coming to WV). However, the regulatory environment in WV creeps along, like molasses, and none of the projects are even under construction–yet. Last month WV’s Commerce Secretary Woody Thrasher said WV is downright unfriendly to electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). Never a truer word spoken. Yesterday Andrew Dorn was in Charleston to testify before the state Public Service Commission about his company’s plans for the Follansbee plant. One of his comments caught our eye. The plant will be able to flip back and forth between burning methane and ethane, depending on the price. Dorn said his dual-fuel plant will give drillers in the region an outlet to sell their ethane, in case they can’t sell ethane to a cracker plant…
Read More “WV Builder Tells PSC Power Plant Can Burn Methane AND Ethane”
Accidents | Energy Services | Energy Transfer Partners | Industrywide Issues | Michigan | Pipelines | Regulation | Statewide MI

Michigan DEQ Claims Rover Discharged Polluted Water into Wetland
October 18, 2017October 18, 2017

Rover Pipeline has been served a violation from the Michigan Dept. of Environmental Quality claiming the company discharged polluted water from its drilling operations into a wetland. Which may sound familiar, because Rover was cited for fouling a wetland in Ohio with 2 million gallons of drilling mud back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). However, the Michigan story is completely different. Water coming from the pipeline project in Michigan (Washtenaw County) appears to contain gasoline in it. The water has a “sheen” and smells of petroleum. The DEQ theorizes that Rover’s work in the area has disturbed existing underground pollution from a now-closed gas station. Water that previously seeped into ground and was polluted by the old gas station is now (according to the theory) making its way into an area wetland. The pollution already existed–Rover didn’t cause the pollution. But the DEQ says Rover work caused the pollution to change locations, so Rover is to blame…
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Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Shell | Statewide PA

Shell Gives Shout-Out to Center for Responsible Shale Development
October 18, 2017October 18, 2017

Greg Guidry is the executive vice president of Shell’s unconventionals business. That is, he’s in charge of shale drilling for the company. Talking to a reporter at the Energy Dialogues LLC’s North American Gas Forum earlier this month, Guidry said shale is “a future growth opportunity because of its long-term growth potential.” Guidry is interested in promoting shale as “a lower-carbon energy source.” He believes the way to properly promote shale gas is by partnerships between the oil and gas industry and non-governmental organizations (NGO). Guidry then used the Center for Responsible Shale Development (CRSD), a group headquartered in Pittsburgh, as the model for how such a partnership can and should be done. In March 2013, the Center for Sustainable Shale Development (CSSD) burst onto the scene. It had been a closely guarded secret, the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. They worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, it would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe driller. In January of this year the CSSD changed its name to CRSD–the Center for Responsible Shale Development (see Chevron Recertified as Safe Driller; CSSD Changes Name to CRSD). So far only four drillers have gone through the process of certification: Shell, Chevron, EQT and CONSOL Energy. Guidry wants to see more operators sign up…
Read More “Shell Gives Shout-Out to Center for Responsible Shale Development”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Bill to Reign in PA DEP, Other Agencies Takes Next Step
October 17, 2017October 17, 2017

Yesterday MDN told you about an effort under way in Pennsylvania to reign in the ever-expanding power of executive agencies in Pennsylvania, like the Dept. of Environmental Protection, by passing a law that requires the PA legislature to approve “economically significant” final regulations (see PA DEP Tries to Expand Its Power, Republicans Try to Reign It In). PA Rep. Dawn Keefer (R-Cumberland) previously introduced House Bill (HB) 1237, a common sense approach to step up the legislature’s oversight of regulatory agencies in PA. The House Commerce Committee reported the bill out yesterday. It now heads to the House State Government Committee, a committee working on the regulatory reform issue for some time. Below is a good description of the bill and what it would accomplish if enacted…
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Dominion Energy | Energy Services | Equitrans/EQT Midstream | Industrywide Issues | North Carolina | Pipelines | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects
October 16, 2017October 16, 2017

Great news delivered late Friday afternoon: The Federal Energy Regulatory Commission (FERC) issued final, full approvals for both the Atlantic Coast and Mountain Valley pipeline projects. Atlantic Coast is a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Mountain Valley is a $3.5 billion, 303-mile natural gas pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. Both projects still face an uphill battle before they get built. The North Carolina Dept. of Environmental Quality (DEQ) issued a rejection letter for Atlantic Coast last week (see NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?). The rejection, while a setback, does not mean the project is barred from the Tar Heel State. It simply means Dominion must provide more information to NC DEQ. Similarly, Mountain Valley first received a water permit from the West Virginia Dept. of Environmental Protection (DEP) in March, later to be withdrawn in September (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). Again, not a catastrophic development–it just slows down the process. Although FERC approved both projects, one of the three FERC commissioners, Cheryl LaFleur (Obama appointee holdover) voted against approving both projects. Her stated reason is that she does not think either project is in the public interest. Antis are (predictably) frothing at the mouth over FERC’s approvals, promising to sue, protest, and do whatever it takes to stop both projects. However, with FERC’s blessing, these projects are now assured of getting built. Below we have copies of the FERC approvals, along with select reaction to the news…
Read More “FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects”
Energy Services | Industrywide Issues | Millennium Pipeline | New York | Orange County | Pipelines | Regulation

NY DEC Appeals FERC Override of Millennium Pipe Decision
October 16, 2017October 16, 2017

The Andrew Cuomo-corrupted New York Dept. of Environmental Conservation (DEC) on Friday filed an appeal/challenge with the Federal Energy Regulatory Commission (FERC) contesting FERC’s recent ruling that essentially emasculates the DEC regarding their rejection of a tiny pipeline project in Orange County, NY. On Aug. 30, the DEC issued a letter to FERC and Millennium Pipeline denying Millennium’s request for a water permit to build a 7.8 mile pipeline spur from the main Millennium Pipeline to a natural gas power plant under construction in Orange County (see Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline). In their rejection, the DEC claimed that FERC’s review of the power plant project (that the pipeline will feed) is deficient based on a recently-decided court case about a pipeline project in Florida. Since the project the pipeline would feed is deficient (in DEC’s view), so too is the pipeline that feeds it. A few weeks later, in September, FERC fired back by overruling NY DEC and granting the project permission to proceed without NY approval (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC is now contesting that move, filing a petition for rehearing with FERC, which is the first step. If FERC decides to not reopen the case, the DEC will then file a lawsuit with the Court of Appeals. In their rehearing request, the DEC asks (begs, pleads) FERC that while this process is under way, the agency should not issue permission for Millennium to begin construction of the pipeline. Construction is urgently needed because the natural gas-fired electric plant the pipeline is supposed to feed will be done in early 2018. It will be interesting to see if FERC decides to snub the DEC (which we think/hope they will)…
Read More “NY DEC Appeals FERC Override of Millennium Pipe Decision”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Constitution Pipeline Asks FERC to Override NY DEC
October 16, 2017October 17, 2017

The Andrew Cuomo-corrupted New York Dept. of Environmental Conservation (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 (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Constitution went to court to overturn that decision, but ultimately failed in August (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). Many analysts and lawyers believed it was lights out for the project (see Energy Attorneys Hint it’s ‘Lights Out’ for Constitution Pipeline). Hold your horses! Constitution, borrowing a strategy that worked for Millennium Pipeline, filed a request last week with the Federal Energy Regulatory Commission (FERC), asking FERC to overrule the DEC’s refusal to grant the water permit needed for the project. There is precedence. FERC recently did the same thing in another case (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). Constitution is on firm ground. The DEC took over two years to review the project. Statutorily the DEC only has one year to complete a review. It was on that same basis that FERC granted Millennium permission to build their project (review was too long), and Constitution is hoping FERC will now do the same for them…
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