Regulation

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    FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects

    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 of Environmental Protection (DEP) in March, later to be withdrawn in September (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit).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”

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    NY DEC Appeals FERC Override of Millennium Pipe Decision

    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”

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    Constitution Pipeline Asks FERC to Override NY DEC

    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…
    Read More “Constitution Pipeline Asks FERC to Override NY DEC”

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    PA DEP Tries to Expand Its Power, Republicans Try to Reign It In

    A troubling development over the past generation or so has been the rise of executive agencies that formulate and adopt their own laws–without said laws being voted on by a legislature. Those new laws are called “regulations.” Long ago the legislative branch of government ceded some (much!) of its power to these agencies. Can you imagine a legislature debating over every new line in a Dept. of Motor Vehicles manual? Or debating standards for nuclear reactors? It was thought that specialists should oversee such minutiae, so the legislature delegated their authority to various executive branch agencies–like the DMV, Nuclear Regulatory Commission, and Environmental Protection Agency. Not only is this done at the federal level, it’s also done at the state (even local) level. On the state level in Pennsylvania, the Dept. of Environmental Protection (DEP) is charged with developing regulations to protect PA’s environment. The DEP sits in the executive branch–under the oversight of the governor (currently Tom Wolf). However, over the years the legislative branch has lost much of its oversight over the activities and new regulations adopted by these agencies. Coincidentally (or not), the PA DEP has just launched an effort to (our words) expand its power in making new regulations. At the same time, a Republican House member has introduced a bill that restricts regulatory agencies like the DEP, and gives the legislature more of a say in how they operate. Looks like a battle is shaping up in the Keystone State over the (expanding) role of the DEP…
    Read More “PA DEP Tries to Expand Its Power, Republicans Try to Reign It In”

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    Monroeville, PA Hostile to Shale, Bans Drilling in Most Places

    Monroeville, PA

    For whatever reason, Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry. In September Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance was meant to hassle Huntley & Huntley, which had wanted to conduct seismic testing in two rural areas of the municipality. But that wasn’t enough for the anti-drilling zealots of Monroeville. On Tuesday, Monroeville Council voted to ban oil and gas well drilling everywhere except for those areas marked M-2 industrial zoning. This is a big change. Previously drilling permits were “conditional use,” meaning each permit was evaluated on its own merits, regardless of which zoning district it was located in. By limiting drilling to M-2, the Council has effectively banned drilling in the municipality. Which is a shame, as Huntley & Huntley’s headquarters is located in Monroeville. We think they should seriously consider moving out of the municipality, taking their considerable economic impact (jobs, tax revenue) with them…
    Read More “Monroeville, PA Hostile to Shale, Bans Drilling in Most Places”

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    Plum, PA Gives Huntley & Huntley Green Light for Shale Drilling

    Plum, PA

    Unlike the anti-drilling Luddites in Monroeville, PA who seek to stifle shale drilling in their municipality (see today’s story: Monroeville, PA Hostile to Shale, Bans Drilling in Most Places), the leaders in Plum, PA (shares a border with Monroeville, in Alleghany County) has approved a plan by Huntley & Huntley to drill a series of Marcellus wells in their municipality. Last week MDN told you that H&H plans to begin constructing a well pad in Plum next month (see Huntley & Huntley Starts Shale Drilling in Plum, PA Next Month). Plum officials gave H&H their blessing on the plan at a meeting on Wednesday. About 150 people showed up for the meeting, many against H&H’s plan to drill. Among the antis was a representative from FracTracker Alliance–a non-profit that pretends to be an impartial “watchdog” of the drilling industry. At the meeting the FracTracker rep revealed his out-of-the-mainstream, anti-drilling bias. He outted his organization as an anti-fossil fuel, Big Green group. Although there was plenty of the typical anti moaning and groaning at the meeting, to their credit, the Plum Council voted 6-1 to approve H&H’s plan to construct a well pad, and to drill several fracked Marcellus wells at the site…
    Read More “Plum, PA Gives Huntley & Huntley Green Light for Shale Drilling”

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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”