Regulation

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    NEXUS Cleared to Begin Construction, Rover Cleared to Restart HDD

    Permission granted grunge rubber stamp on white, vector illustration

    Important pipeline news for the Utica Shale. Yesterday the Federal Energy Regulatory Commission (FERC) gave permission to NEXUS Pipeline–a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada–to begin construction. This is a momentous day! NEXUS had previously requested FERC allow it to begin by Tuesday, Oct. 10th (see NEXUS Pipe Seeks to Begin Construction Oct 10; List of Contractors). FERC was a day late, but certainly not a dollar short. We expect by the time you read this, some of the bulldozers and backhoes will already be fired up and working. What oh what will the antis do now (see CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court)? The second bit of good news also from yesterday from FERC–Rover Pipeline is allowed to restart underground horizontal directional drilling (HDD) at another four sites where such activity has been halted since May of this year. Rover has still not received permission to restart HDD drilling at the spot along the Tuscarawas River where they spilled 2 million gallons of drilling mud (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). However, Rover remains confident they will complete the entire project $3.7 billion, 711-mile natural gas pipeline running from PA, WV and eastern OH through OH into Michigan by the end of this year…
    Read More “NEXUS Cleared to Begin Construction, Rover Cleared to Restart HDD”

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    Marcellus/Utica Rig Count Race Tightens: OH Count Closes in on PA

    It’s been a few months since we’ve brought you news about the monthly average for Baker Hughes’ venerable rig count–largely because after GE completed it’s merger with Baker Hughes they quit issuing monthly press releases from their website! We spotted a story in the Pittsburgh Business Times that talks about Ohio coming close to parity in their rig count with Pennsylvania–which is a really big deal–and the reasons for it. That story sent us looking for the latest rig count numbers and indeed, it’s true. As of September, PA averaged 33 shale rigs in operation, while OH averaged 29–the closest we’ve ever seen it. If you look at the counts for last week (BH does a weekly rig count too), the numbers are even closer: PA with 31 rigs, OH with 29. We don’t typically monitor the weekly counts as they always fluctuate up and down–better to look at monthly averages. But the fact remains that PA has been pretty steady, operating between 32 and 34 rigs per month since January of this year, while OH has gone from operating an average of 20 rigs in January to 29 last month, and West Virginia has gone from operating an average of 8 rigs in January to 15 rigs last month (nearly doubling). Yet PA is static. Is there an explanation? Some experts think there is, and it can be explained in a single word: pipelines…
    Read More “Marcellus/Utica Rig Count Race Tightens: OH Count Closes in on PA”

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    OH Congressman Intros Impact Fee for Counties with WNF Drilling

    Congressman Bill Johnson

    Congressman Bill Johnson, Republican from Ohio’s 6th District, has introduced a bill to compensate counties that contain federal lands, if those lands are drilled for oil and gas. Johnson’s bill, titled Providing Opportunities With Energy Revenues (or POWER) Counties Act (copy below), would siphon off a portion of any royalties paid to the federal government for federal lands that are drilled, sending that money back to the counties where the drilling takes place. Although Johnson and those supporting the bill don’t call it an impact fee, that’s exactly what it is. In Pennsylvania instead of a severance tax, legislators passed Act 13 (in 2012) which contains and impact fee. With PA’s impact fee (roughly the same thing as a severance tax), 60% of the fee raised stays with local counties and municipalities, while 40% goes to the black hole of Harrisburg where it disappears into statewide spending (mainly Philadelphia). It has been a hugely successful model–better than a severance tax. Johnson’s proposed law is not a tax, but reallocates money from existing royalties paid to the federal government for drilling on federal lands. In Ohio, the only federal land where drilling takes place is Wayne National Forest–so those counties where there is WNF drilling would get some extra cash to help out with road repairs, first responders, etc. The brilliance of the plan is that it doesn’t impose any new taxes–it simply reallocates who gets what from the existing revenue stream. Johnson says, “it is a simple issue of fairness”…
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    SWPA House Republican to Introduce PA ‘Clean Power Plan’

    PA Rep. John Maher

    That wily Pennsylvania House Rep. John Maher (Allegheny & Washington Counties) is doing it again. Maher, a Republican, is the guy who came up with the brilliant plan to rename PA’s impact fee to a “severance tax”–because the impact fee is the rough equivalent of a severance tax (see PA House Ctte Votes to Rename “Impact Fee” to “Severance Tax”). The measure, which did not make it to the House floor for a vote, was intended to point out that the Marcellus industry in PA is already taxed–just as much (or more) than if it were called a severance tax. Maher is doing it again. Jumping on the (very good) news that President Trump is dismantling Obama’s odious Clean Power Plan (CPP)–a plan that favors so-called renewables over coal and natural gas for power generation–Maher is proposing a Pennsylvania Clean Power Plan. There are no details as yet. Maher has sent out a memo (copy below) to his fellow lawmakers asking them to join him in sponsoring such a plan–details and a meeting to come later. At first blush you might think Maher has defected to the dark side, proposing that PA stick it’s collective finger in President Trump’s eye in an act of defiance by adopting its own mini-version of the Obama CPP. We don’t think that’s what is happening at all. We think Maher’s CPP will focus on letting the free market figure out how best to reduce carbon dioxide emissions. We have no doubt natural gas will play a starring role in Maher’s version of a CPP…
    Read More “SWPA House Republican to Introduce PA ‘Clean Power Plan’”

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    FERC Grants Atlantic Bridge Pipe OK to Begin NY Construction

    The Federal Energy Regulatory Commission (FERC) last week granted permission to Algonquin Gas Transmission (i.e. Spectra Energy, now owned by Enbridge) to build new pipeline infrastructure in New York State, part of the $452 million Atlantic Bridge expansion project. Atlantic bridge was approved by FERC back in January (see FERC Approves Atlantic Bridge Project for New England/Canada). The project beefs up capacity along the Algonquin Pipeline, along with Spectra Energy’s Maritimes & Northeast Pipeline, to carry more Marcellus/Utica gas into New England and (eventually) all the way to Nova Scotia, Canada. Over the shrill objections of antis, including both U.S. Senators from Massachusetts, FERC allowed construction to begin on Atlantic Bridge in Connecticut back in March (see FERC Grants Atlantic Bridge Pipe OK to Begin CT Construction). Miracle of miracles, the corrupt NY Dept. of Environmental Conservation issued water permits for the project in May (see NY DEC Grants Water Permits for Atlantic Bridge Pipeline Project). And now FERC is giving the green light for construction to commence in NY. What work is happening in NY?…
    Read More “FERC Grants Atlantic Bridge Pipe OK to Begin NY Construction”

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    Guest Post: The Real Record of Ex-EPA Sec. Gina McCarthy

    Depending on whether you’re a hardened leftist, or a common sense conservative, Gina McCarthy (former head of the Environmental Protection Agency) was either Savior or Satan. We tend toward the latter–someone who (ab)used her office to push a far-left political agenda. During her tenure, McCarthy oversaw the ramrodding through of the horrible Waters of the United States (WOTUS) and Clean Power Plan (CPP) regulations. It’s taken Team Trump a while, but both measures are being taken apart, plank by plank. Most people from agencies like the EPA retire quietly after their tenure. Not McCarthy. She’s out there in the media attempting to whitewash and cover up her mistakes, and castigating her successor, Scott Pruitt. Mainstream media, which tilts left of Attila the Hun, loves it (and her), giving her a voice. MDN friend Steven Heins, an energy and regulatory consultant and former vice president of communication for Orion Energy Systems, sets the record straight about Ms. McCarthy’s tenure as head of the EPA. Steve reminds us all of some rather uncomfortable truths about the EPA as it was under McCarthy…
    Read More “Guest Post: The Real Record of Ex-EPA Sec. Gina McCarthy”

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    NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?

    North Carolina has become the first state to complete an environmental evaluation for Dominion’s proposed $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. ACP is slated to run through eight NC counties. After completing it’s evaluation, the NC Dept. of Environmental Quality (DEQ) issued a rejection letter (copy below) for the project. The reason? The DEQ says the erosion and sediment control plan for the project is not up to scratch. Dominion can now do two things: Revise the erosion and sediment control plan and resubmit it, or contest the DEQ’s rejection of the existing plan. Although antis are rejoicing at the news, there really isn’t much here in the way of news. This is not uncommon in pipeline reviews. A government agency (federal or state) will push back on some aspect of the plan, the project builder will modify the plan, and the modified plan will pass muster and life goes on. That’s the way it works. The DEQ is (presumably) doing it’s job and not simply looking for an excuse to reject the project. We’ll give them the benefit of the doubt–this time. Although we’ve not read that Dominion has responded to the rejection, another partner in the project, Duke Energy, has responded–saying they will provide the necessary information the DEQ says is missing in the original plan…
    Read More “NC DEQ Rejects Plan for Atlantic Coast Pipeline – What’s Next?”

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    Another Look at WV’s Co-tenancy & Joint Development Proposals

    When MDN editor Jim Willis attended the Shale Insight conference in Pittsburgh two weeks ago, one of the recurring themes he heard from West Virginia officials is that the state urgently needs to pass “mineral efficiency” laws. What they meant by mineral efficiency is another name for co-tenancy and joint development. We’ve written a fair bit about the topic–what we call “forced pooling lite.” In August the West Virginia Oil & Natural Gas Association (WVONGA) announced its intention to push, once again, for co-tenancy and joint development (see WVONGA Makes Plans to Push Forced Pooling Lite in 2018). We spotted an editorial from the co-founder of the West Virginia Surface Owners Rights Organization on the topic co-tenancy and joint development. He has a unique perspective. He calls co-tenancy “majority rules” and joint development “invisible ink.” What does he mean? And what would these two measures do if adopted? And is there really an urgent need for them? Let’s tackle this issue once again…
    Read More “Another Look at WV’s Co-tenancy & Joint Development Proposals”

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    Ohio Approves 2 Utica-Fired Power Plants in Guernsey, Trumbull Counties

    Last week the Ohio Power Siting Board (OPSB) approved two new Utica-gas powered electric plants, and authorized the expansion of a third plant to a bigger size. The OPSB approved the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for (surprise!) Guernsey County, OH (see New Utica-Powered Electric Plant Proposed for Guernsey County, OH). OPSB also approved the Trumbull Energy Center project, a new plant proposed by Clean Energy Future for (surprise!) Trumbull County (see Details on Newly Announced Trumbull Energy Center Electric Plant). That second one may or may not sound familiar. Clean Energy is already building an electric generating plant in Trumbull County–in Lordstown, called the Lordstown Energy Center (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). Clean Energy proposed building a second plant right next to the first one (see Details on Newly Announced Trumbull Energy Center Electric Plant). We suppose Clean Energy could have called the second plant Lordstown Energy Center II, but instead they elected to call it Trumbull Energy Center. Two plants, side by side, built by the same company–now approved by OPSB. The OPSB also approved a request by Clean Energy to expand the already-under-construction Lordstown plant, from 800 megawatts to 940 megawatts. Here’s the lowdown on what got approved, and where it’s all located…
    Read More “Ohio Approves 2 Utica-Fired Power Plants in Guernsey, Trumbull Counties”

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    Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor

    Fire it up! On Friday, the Federal Energy Regulatory Commission (FERC) granted Energy Transfer permission to fire up the three units that make up the Carroll County Compressor Station (called Compressor Station 1) that helps compress and flow natural gas through the mighty Rover Pipeline. According to the letter from FERC authorizing the startup of the compressor station, FERC is authorizing “partial” service to commence. Since ET wanted to start the station on Friday, we expect the plant is by now up and running. The effect will be dramatic. According to stats released by NGI (Natural Gas Intelligence), which has an excellent Rover Tracker application on their website (see Friday’s version here), Rover has been flowing around 680 million cubic feet per day (MMcf/d) of Utica/Marcellus gas. With the addition of the Carroll County compressor station, that number will nearly double–to 1.2 billion cubic feet per day (Bcf/d). Cool! Here’s the details of how Rover’s capacity just nearly doubled with the addition of a single compressor station…
    Read More “Rover Pipe Nearly Doubles Flow with Addition of Carroll, OH Compressor”

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    Shell Files PA Application for Ethane Pipe to Feed Cracker Plant

    Click to view a larger version of the map

    Shell’s long-talked about ethane pipeline, called Falcon Pipeline, is finally official. That is, official in the sense that Shell filed an application with the Pennsylvania Dept. of Environmental Protection last week, looking for permission to build it. Brief history: In February 2016, MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June 2016 (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily broke a story in August 2016 that shed new light on the project–news that Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). As NGI reported at that time, the new ethane pipeline system has a name: the Falcon Ethane Pipeline System. In October 2016 Shell launched a binding open season for the Falcon pipeline (see Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline). You might justifiably think that with open seasons and a scad of easements signed between landowners and Shell, that the project had already filed for permission to build. Not so. Last week Shell made it official by filing that paperwork–for the portion of the pipeline running through PA…
    Read More “Shell Files PA Application for Ethane Pipe to Feed Cracker Plant”

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    FERC Issues Final Approval for Delmarva Pipeline Expansion

    In July 2016 MDN told you about a smallish, but important pipeline project in the Delmarva Peninsula area, which includes most of Delaware and portions of Maryland and Virginia. Eastern Shore Natural Gas’ 2017 System Expansion project will bring new sources of natgas from an interconnection Eastern Shore has with the mighty TETCo (Texas Eastern Company) pipeline near Philadelphia (see PA/MD/DE Pipeline Project Heats Up with Open House Mtgs This Week). The project includes 22.7 miles of new looping pipeline (laid next to existing pipeline) in Pennsylvania, Maryland and Delaware; a 16.9-mile extension to a pipeline in Sussex County, DE; and upgrades to compressor and valve stations. Chesapeake Utilities, the parent company, calls the project the single largest such expansion in Eastern Shore’s history, a project that will bump up gas delivery volumes by 25%. In May the Federal Energy Regulatory Commission (FERC) gave the project a glowing environmental review (see Delmarva Pipeline Expansion Gets Positive FERC Enviro Review). A favorable EIS from FERC is typically prelude to a full, final approval. And such is the case with this project. On Wednesday, FERC issued a certificate approving the project–a final approval. The next step will be for Chesapeake Utilities, the parent company building the project, to request FERC permission to start the bulldozers and backhoes…
    Read More “FERC Issues Final Approval for Delmarva Pipeline Expansion”

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    Southwestern Energy Reduces Methane Leaks, WITHOUT Onerous Regs

    The debate rages, both nationally and on the state level (in Pennsylvania, anyway) about the best way to reduce fugitive methane. That is, to stop methane from leaking out of pipes and into the atmosphere where it supposedly contributes to mythical man-made global warming. Leaving aside the nonsensical global warming stuff, it’s in the best interests of any producer (or pipeline company) to ensure no methane molecules leak out of the system. It’s the stuff they extract and sell! They don’t want their inventory flying away into heaven. The debate is how best to ensure less methane leaks. On one side you have the typical Big Government types that want to regulate everything, down to the type of equipment you use to detect leaks and the methods for fixing it. We have nothing against common sense regulations, but as everyone knows, government tends to screw things up, rather than fix things. On the other side you have drillers and midstream companies who content “just give us a standard and let us figure out how best to meet that standard.” Case in point is Southwestern Energy. Southwestern launched a leak detection and fixing program five years ago–and has dramatically cut the amount of methane leaking from its operations. Southwestern, and others, show us the way it should be done, WITHOUT needing onerous regulations from the federal government or from the regulation-happy PA Gov. Tom Wolf…
    Read More “Southwestern Energy Reduces Methane Leaks, WITHOUT Onerous Regs”

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    Greene County, PA Green Lights APV Marcellus-Fired Electric Plant

    In March MDN brought you the news that APV Renaissance Partners (a subsidiary of American Power Ventures) wants to build a 1000 megawatt, combined-cycle power plant at the old Hatfield’s Ferry site in Greene County, PA–to be powered with Marcellus Shale gas (see Marcellus Gas-Fired Power Plant Coming to Greene County, PA). In April, APV officially unveiled their plans for the old Hatfield’s Ferry site, in Monongahela Township (see More Details on Marcellus Power Plant Coming to Greene County, PA). On Monday, the Greene County Planning Commission granted conditional final approval for the project. Before APV gets final final approval from the county, it must first meet a number of conditions–most of them a part of the state permitting process. Here’s the good news that the APV project is one step closer to reality…
    Read More “Greene County, PA Green Lights APV Marcellus-Fired Electric Plant”

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    2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA

    In reporting on APV Renaissance Partners’ plan to build a 1000 megawatt electric power plant in Monongahela Township (Greene County), PA, today, we noticed an interesting closing paragraph in the story we quoted, which says: “Another energy company, Hill Top Energy Center, also has proposed constructing a natural gas power plant in Greene County. Hill Top has proposed building a 536-megawatt plant on 41 acres of land off Thomas Road in Cumberland Township. A public hearing on Hill Top’s proposed air quality plan will be held by DEP at 6 p.m. Nov. 2 in the Carmichaels Area High School auditorium.” A second Marcellus-fired power plant planned for Greene! Who knew? We went searching for details we could find to share with you about this second project, which will get a DEP hearing in a month…
    Read More “2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA”

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    Warning: Secret Pipeline Ban on New York Ballot in November

    Next month when New Yorkers go to the polls to cast their votes (an illusory scam in Communist NY), there will be three Propositions on the ballot. One of the three is called, “Authorizing the Use of Forest Preserve Land for Specified Purposes.” The one-paragraph description implies municipalities will have more flexibility in using “preserved” land–so long as they designate the same amount of land to be added back to the pool of preserved land. It also allows bicycle trails and public utility lines to cross preserved land. However, what the description does not say (which can be found in a full reading of the proposition) is this: the proposition “prohibits the construction of a new intrastate gas or oil pipeline that did not receive necessary state and local permits and approvals by June 1, 2016.” So no new intrastate (within the state) pipelines through preserved land, period. Ever. Even though electric lines crossing preserved land are just fine. Why is Gov. Cuomo trying to hide this from residents? Will NY residents even wake up and notice they don’t know what they’re actually voting for (or against)? That’s how sleazy politics is played in the Empire State…
    Read More “Warning: Secret Pipeline Ban on New York Ballot in November”