Regulation

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    FERC Greenlights Construction of Atlantic Sunrise Pipeline

    Bad news for the Sisters of the Corn and the radicals at Lancaster Against Pipelines. On Friday the Federal Energy Regulatory Commission (FERC) granted Williams permission to begin construction on Atlantic Sunrise, a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Last week the Sierra Club and a mish mash of other nutball groups begged FERC to delay issuing an order that Williams can commence with construction, claiming FERC’s delay in considering a rehearing delayed a lawsuit and the lawsuit hasn’t had enough time to work it’s way through the court system (see Big Green Begs FERC to Delay Construction of Atlantic Sunrise Pipe). As was expected, Big Green’s begging and pleading fell on deaf ears. Williams previously said they plan to begin construction on Sept. 20th–this Wednesday. Ladies and gentleman, start your (backhoe) engines! Sisters of the Corn (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe), you may want to pick up your wooden park benches and the flower trestle–what you call a “chapel”–in the middle of your corn field. Here comes the Atlantic Sunrise!…
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    Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U

    TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. The original open season last year was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). The plan needs a bevy of regulatory approvals, the main one being the Canadian National Energy Board (NEB). The clock is ticking and time is running out. In hearings before the NEB last week, the Canadian Association of Petroleum Producers pleaded their case that the plan get approved. Without it, western Canadian gas simply can’t compete with cheap, abundant Marcellus/Utica Shale gas flowing north. In somewhat dramatic terms, Canadian drillers claimed the “future of western Canada’s natural gas industry could depend on pipeline company TransCanada winning regulatory approval” of their lowball plan…
    Read More “Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U”

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    PA House Should Nuke Anti-Landowner Section 1610 of Budget Bill

    In July when the Pennsylvania Senate passed their awful budget bill that includes a variety of new taxes, including a new severance tax on the Marcellus industry, they also slipped in Section 1610 which changes established lease law with respect to oil and gas wells that no longer produce anything (see PA Senate Slips Anti-Landowner Measure into State Budget Bill). Under existing law, when an oil or gas well stops producing–and the landowner quits getting royalty checks–the lease is considered terminated. Done. Finished. Under new Section 1610, drillers can resurrect those dead leases under a couple of conditions. If the landowner doesn’t officially state “your lease is now dead since you’re not producing anything” a driller can quick-like-a-bunny restart production at the well and send the landowner a royalty check, re-starting (or continuing) the existing lease with its existing terms. Or if the driller sends a notice to the landowner stating its intention to drill a new well on the property, and if the landowner doesn’t object (within a 3-month time limit), the driller is free to begin drilling a NEW well, under the OLD lease terms. Section 1610 really stinks, in our humble opinion. It means a driller can drill a new shale well after an old conventional/vertical well quits producing–without having to sign a new lease or pay a new bonus or negotiate a new royalty rate. An editorial in the profoundly anti-drilling (and far-left) Scranton Times-Tribune encourages the House to nuke the Section 1610 provision. This is one of those rare (perhaps first time!) cases when MDN agrees with the lefty libs at the Times-Tribune…
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    Big Green Begs FERC to Delay Construction of Atlantic Sunrise Pipe

    Last week the Pennsylvania Dept. of Environmental Protection (DEP) issued the final permit needed by Williams to begin construction on Atlantic Sunrise, a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County (see PA Issues Final Permit for Atlantic Sunrise, Construction Sept 20). The only thing left before Williams fires up the bulldozers and backhoes and begins to dig is for the Federal Energy Regulatory Commission (FERC), which has already fully approved the project, to issue a “you can begin building” order. Last week Williams said they hope/plan to receive that order imminently, and begin construction next week, on Sept. 20th. However, the radicals at the Sierra Club and a bunch of other loony leftist “environmental” organizations are riding in to ruin the day. They’ve filed an urgent request with FERC to delay issuing the order to begin building. Why? Because these cancerous groups previously filed a lawsuit in federal court that seeks to have FERC reverse their decision to approve the project. The first step in the process when radical groups challenge a FERC order is for FERC itself to reconsider whether or not to rehear arguments against a project. FERC did delay, using something called a “tolling order.” Because of the tolling order delay, the radicals could not (as they wanted all along) appeal the case to the liberal D.C. Court of Appeals, the next step in the process. The radicals say the now-appealed case before the 2nd Circuit hasn’t had enough time, therefore FERC should delay an order to allow construction to begin for Atlantic Sunrise…
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    Pinelands Commission Approves Pipeline Thru NJ Scrub Pines

    Click for larger version of map

    Anti-fossil fuel radicals behaved badly, as they usually do, at yesterday’s New Jersey Pinelands Commission meeting. Using “whistles, cowbells and shouts,” and holding “Pinocchio noses to their faces,” radical antis from groups like the Sierra Club tried to bully commissioners into denying approval of a $130 million, 28-mile natural gas pipeline proposed by New Jersey Natural Gas (NJNG) to connect NJNG’s distribution system serving customers in Ocean, Burlington and Monmouth counties (in NJ) and the interstate pipeline system adjacent to the New Jersey Turnpike. Spoiled, rotten-acting children grow up to be spoiled, rotten-acting adults. Ever notice that truism? The pipeline runs through 12 miles of scrub pines that are “protected” in NJ. The “Southern Reliability Link” pipeline project, as it is called, is meant to provide a backup for hundreds of thousands of NJ residents who lost access to natural gas following Super Storm Sandy. Such reliability makes no difference to radicals (many of them out-of-state) who irrationally hate all fossil fuels. The Sierra Club sued to stop the project. The courts ruled that the Commission would need to hold a full vote on whether to approve it, so the Commission held a public hearing in July (see Antis Oppose Tiny Pipeline Thru Scrub Pines in N NJ at Hearing). Yesterday the full Commission voted, 8 to 4 (with 1 abstention), to approve the Southern Reliability Link. Finally! Of course the radicals say they will now launch yet another frivolous lawsuit to try and stop it, claiming the Commission “ignored the law” in approving the project. No, Sierra Club, YOU are the ones who continually ignore the law…
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    Time for FERC, Congress to Slap States into Line re Pipe Refusals

    West Virginia Dept. of Environmental Protection’s (WVDEP) capricious decision to yank a permit it previously granted for the Mountain Valley Pipeline is “the last straw” according to the legal beagles at the Blank Rome law firm. Last week WVDEP, under pressure in a lawsuit brought by the radical Sierra Club, decided to revoke a previously granted water crossing permit (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). The corrupt New York Dept. of Environmental Conservation is now making a habit of refusing these types of permits for projects in our beloved home state–so far refusing permits for the Constitution Pipeline, Millennium Pipeline, and Northern Access Pipeline projects. Given this recent activism by state agencies, the lawyers at Blank Rome say it is now time for both the Federal Energy Regulatory Commission (FERC) and Congress to act, to “stem this overreach by States.” In our words, it’s time to slap the states back into line. They lay out a case to do so…
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    Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin

    Well they did it. Yesterday at a regularly scheduled meeting of the Delaware River Basin Commission (DRBC), representatives for the five voting members voted to begin the process of formalizing a permanent ban on fracking in the Delaware River Basin. It wasn’t unexpected, but it was hotly contested–by both sides in the debate. As we’ve previously chronicled, the DRBC is composed of five voting members: the governors of Pennsylvania, New York, Delaware, New Jersey, along with the U.S. Army Corps of Engineers. The governors all sent people to represent them at the meeting, with clear instructions. The three Democrat governors–Tom Wolf (PA), Andrew Cuomo (NY), and John Carney (DE) all voted in favor of a resolution to take the next step in the process of a permanent ban, voting to adopt a draft resolution MDN previously shared (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). Gov. Chris Christie’s (NJ) rep abstained from the vote, and the Army Corps, which answers to the White House, voted NO. Steven Tambini, DRBC’s executive director, has clearly lost control of the organization. Or perhaps he never had control to begin with. Tambini urged critics to “withhold judgment” until they see the regulations that Big Green groups cook up. Big Green groups like THE Delaware Riverkeeper (aka Maya van Rossum) should be elated–but they still had sourpusses on. They didn’t like language in the resolution that would allow frack wastewater to be hauled/disposed of inside their precious Delaware River Basin playground. Meanwhile, landowners in Wayne and Pike counties in PA are getting the royal shaft–they will never be able to lease their land for drilling. In 2015 PA Gov. Wolf offered to help those landowners, in return for a political quid pro quo–support his severance tax plan (see PA Gov Wolf Offered Deal in ’15 to Open Dela. River Basin Drilling). The landowners did not support Wolf’s loony severance tax plan, so now it’s payback. Wolf is going to strip their property rights away…
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    Senators Try to Remove Sev. Tax Stain by Chiding Wolf re DRB Vote

    Following yesterday’s vote by the Delaware River Basin Commission (DRBC) to take the first step in a permanent ban on fracking in the Delaware River Basin (DRB), reaction from those who support drilling was swift. The American Petroleum Institute issued a statement saying, among other things, that the DRBC’s intention to permanently ban fracking in the DRB is “bad public policy.” More than a few Pennsylvania legislators took issue with PA Gov. Wolf’s vote to endorse a permanent frack ban. Three ranking State Senators–Senate President Pro Tempore Joe Scarnati, Senate Majority Leader Jake Corman, and Senate Environmental Resources and Energy Chair Gene Yaw, ripped into Wolf with a joint press release yesterday, saying they “strongly objected” to Wolf’s vote. The three said a permanent ban on natural gas drilling in the Delaware River Basin is “arbitrary, short-sighted and a blow to economic development, job-creation and landowner’s rights.” We appreciate their support. However, those same three Senators recently sold out the gas industry when they voted for a severance tax. They were part of the high-tax cabal that made the job of the House that much harder (thank God the House passed a no-severance-tax budget yesterday, see today’s companion story). While we appreciate the Senators’ support on the DRB frack ban issue, their bloviating against Wolf on the frack ban vote doesn’t remove the stain of their betrayal of the gas industry in voting for the severance tax. All three Senators need to go at the next primary…
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    Rover Pipeline Still Battling Ohio EPA, Asks FERC to Lift HDD Ban

    Rover project map – click for larger version

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada–starting flowing natural gas through a 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 700 million cubic feet per day (MMcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH. 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 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 (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). Rover believes sabotage may have been the cause (see ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks). Since April, FERC has blocked all new underground HDD work for the Rover project. Rover has asked (begged, pleaded) FERC, several times, for permission to restart the HDD work–at least in a few select locations. In August, FERC issued eight conditions before they would agree to lifting the HDD ban (see FERC Issues Rover 8 Commandments to Restart Horizontal Drilling). Rover says they have met all of those conditions. However, the OEPA says they have not, and is asking FERC to continue blocking HDD activity until they (OEPA) are satisfied. Rover fired off a letter to FERC that says OEPA’s public statements are opposite of their private statements with Rover. In other words, OEPA is lying. Who will FERC listen to?…
    Read More “Rover Pipeline Still Battling Ohio EPA, Asks FERC to Lift HDD Ban”

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    Monroeville, PA Passes Restrictive Seismic Testing Ordinance

    Monroeville, PA (Allegheny County, suburb of Pittsburgh) voted last night to restrict seismic testing within municipal boundaries–a move meant to restrict future shale well drilling in the area by Huntley & Huntley. In a July story, MDN brought you the news that Cougar Land Services, a subcontractor working with Huntley & Huntley, is planning to conduct seismic testing in two rural areas of the municipality, including “small portions” of Monroeville’s northernmost and southernmost tips (see H&H: Seismic Testing Coming to Monroeville, Not to Oakmont). Monroeville Council voted in early August to publish a draft of its new seismic testing ordinance for 30 days of public comment, prelude to a final vote (see Monroeville, PA Close to Passing Restrictive Seismic Testing Ord.). The restrictions are meant to hassle anyone wanting to conduct seismic testing, i.e. Huntley & Huntley. Which is kind of sad, as H&H is headquartered in Monroeville. Kind of like spitting in the company’s face. Last night Monroeville hawked up a huge wad of phlegm and let a big one fly in the face of H&H. Not to worry. If the ordinance “is outside the state parameters,” H&H intends to sue. Just to add insult to injury and let the Marcellus industry know how unwelcome they truly are, the council also voted to put a new ordinance on the agenda that pretty much blocks all Marcellus Shale drilling throughout the municipality…
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    Mountaineer NGL Storage Project Delayed Until 2018

    Mountaineer NGL Storage wants to build a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica). As we reported in April, the company need customers to sign up to use the facility–a minimum of 1 million barrels of storage would get it going (see More Clarity on Status of Mountaineer NGL Storage Facility in OH). Mountaineer still needs to build a 3.25 million barrel brine pond, used to pump out the stored NGLs. Mountaineer is waiting for a clearance from the Ohio Dept. of Natural Resources to build the pond, which (in June) we said would likely to take “a few more months.” Strike that. The CEO of the project recently said he now does not expect to get those permits until “first or second quarter of next year.” He hastens to add that’s no problem, because his two biggest potential customers–the Shell ethane cracker in Beaver County, PA and the closer-by PTT Global Chemical cracker in Belmont County, OH, won’t be ready to start using ethane until 2020 at the earliest…
    Read More “Mountaineer NGL Storage Project Delayed Until 2018”

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    PA Gov Wolf Offered Deal in ’15 to Open Dela. River Basin Drilling

    Here’s a surprise: Big Green mouthpiece PBS StateImpact Pennsylvania is dishing some dirt on one of their own–PA Gov. Tom Wolf. We’ve been closely following the developing situation with the Delaware River Basin Commission (DRBC) finally coming out of the closet as an extended arm of radical Big Green group Delaware Riverkeeper. The DRBC will vote (today) on beginning the process to permanently ban fracking in the Delaware River Basin (DRB), which will prevent landowners in Wayne and Pike counties (PA) from accessing the bountiful shale gas under their land (see our article yesterday, DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The DRBC is composed of five voting members: the governors of NY, PA, DE, NJ and the U.S. Army Corps of Engineers. A final new regulation that permanently bans fracking would need those five votes. According to an article published yesterday by StateImpact PA, in a 2015 meeting with Wayne County landowners who support fracking, Gov. Wolf offered to work on opening up the DRB for fracking–IF the landowner group in Wayne County would support his push for a severance tax in return. People at the meeting said, “it almost felt like a bribe.” Maybe because it *was* a bribe! A political bribe. Fortunately the landowners from Wayne didn’t take the bait, they did not support his loony tunes severance tax plan. So now it’s payback time, with Wolf signaling he will vote for a permanent ban on fracking…
    Read More “PA Gov Wolf Offered Deal in ’15 to Open Dela. River Basin Drilling”

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    French Schizo: Ban Gas Drilling; Gas Bridge to Renewable Future

    MDN editor Jim Willis had the pleasure of visiting France in 2006. It is a breathtakingly beautiful country. Jim found the French people to be personable and easy to deal with, contrary to the popular myth they are arrogant and hate Americans. But hey, that was just one guy’s experience. Maybe you have had a different experience? We’ve written about France’s on again, off again frack ban over the years (see our stories about France here). You don’t have to worry about whether or not France will ever allow fracking. Beginning this fall, the country will stop issuing ANY/ALL permits to drill for ANY/ALL oil and gas–conventional, shale, doesn’t matter (see France Commits Energy Suicide – No New Oil & Gas Exploration, Ever). France says it will transition to “environmentally-friendly energy.” You know, like solar and wind–even though discarded solar panels are about the same thing as disposing of nuclear waste (an ecological disaster). But appearances are everything for French President Emmanuel Macron and his certifiably-insane government. France (as of 2013, the most recent stats we could find) gets 44.5% of its energy from oil and gas, the single largest block of energy powering the country. Nuclear is second, at 41%. Wind and solar? Together they make up less than 1% of France’s energy supply. Here’s another bit of evidence that France is schizophrenic when it comes to energy: Recently the French international association for gas, CEDIGAZ, released a report (copy below) that predicts worldwide natural gas use will rise 1.6% per year from 2014-2035, outstripping all other forms of energy, renewable or not. CEDIGAZ also says natural gas and LNG are “a key transition fuel” to the renewable, sustainable nirvana that awaits us in the future. And yet France is banning all oil and gas drilling–eliminating the bridge to that future. How do you reconcile that?…
    Read More “French Schizo: Ban Gas Drilling; Gas Bridge to Renewable Future”

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    PA Issues Final Permit for Atlantic Sunrise, Construction Sept 20

    Atlantic Sunrise Pipeline is primed and ready to begin construction after receiving its very last required permit from Pennsylvania–an Air Quality Plan Approval for air emissions related to construction activities in Lancaster County. The PA Dept. of Environmental Protection (DEP) issued the Air Quality permit last Friday. You may recall Atlantic Sunrise, a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County, received water crossing permits from the DEP and U.S. Army Corps of Engineers a few weeks ago (see Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP). In August the DEP held a public hearing in Lancaster to accept public comment on the air permit. A small group of anti-pipeline protesters acted like petulant 5-year olds and walked out of the hearing (see Big Green Groups Stage Walkout at PA DEP Atlantic Sunrise Hearing). No matter. Their antics didn’t affect the DEP. According to Williams, the builder of the pipeline, they now await an order from the Federal Energy Regulatory Commission (FERC) to begin construction. They expect to receive that order any day now. They hope (and expect) to begin construction next Wednesday, Sept. 20th…
    Read More “PA Issues Final Permit for Atlantic Sunrise, Construction Sept 20”

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    DRBC Votes Tomorrow on Permanent Frack Ban Resolution

    Turns out the rumors were true. The Delaware River Basin Commission has now been totally corrupted by Big Green groups and plans to vote tomorrow, Sept. 13, on a resolution that begins the process of implementing a permanent ban on fracking in the Delaware River Basin. This is not the end, but the beginning of the end, of any hope for landowners in Wayne and Pike counties in PA. Their property rights will (like those of us who live in New York) be stripped away. Except in Wayne and Pike, it will be a permanent stripping away. At least in NY we have the hope of one day ejecting Lord Cuomo from office and reversing the ongoing moratorium. However, even though this should be a total win for radicals like THE Delaware Riverkeeper (aka Maya van Rossum), the radicals are STILL not happy! Can you believe it?! Part of the proposed resolution and rulemaking to follow will consider allowing frack wastewater disposal within the DRBC’s fiefdom. That just can’t stand according to Maya and her rad pals. Here’s the DRBC announcement, news coverage of it (with quotes from radical groups), along with a copy of the proposed resolution that will be voted on tomorrow…
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    Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit

    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, last week the WVDEP caved and reversed their decision, rescinding (called “vacating”) the permit for MVP. The WVDEP says they will now “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” Another victory for the forces of evil…
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