Regulation

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    NEXUS Pipe Seeks to Begin Construction Oct 10; List of Contractors

    NEXUS Pipeline map – click for larger version

    Something just now coming to light. Last week NEXUS Pipeline sent a request to the Federal Energy Regulatory Commission (FERC) requesting that it be allowed to begin construction of the pipeline “on or before” Tuesday, October 10th. That’s next Tuesday, folks! NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. NEXUS received final approval for the project from FERC in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Two weeks ago one of the final remaining hurdles came down when the Ohio EPA granted a water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). The project still faces court challenges (see CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court), however, those challenges are long-shots. Given that all permits have been issued, last Thursday NEXUS sent FERC a request to begin construction (see the request below). As part of the request, the contractors that will build the pipeline were named. We’ve pulled those names into a handy list, for those looking for jobs and those who want to sell goods and services to the companies actually building the pipeline…
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    Latest PA Budget Bill Drops Fix for Slow DEP Permit Reviews

    In an issue that’s growing old, fast, the Pennsylvania legislature has still not dragged the dead horse known as the 2017 state budget across the finish line. It all started months ago when the Republican-led legislature passed a $32 billion budget–with only $30 billion available to pay for it. Big mistake. The pressure was intense to pass a severance tax to help fill the gap. Traitorous Republicans in the Senate caved to that pressure and in July passed a budget bill that hikes taxes on lots of things, including a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). As part of that misguided and mangled budget bill, Senate Republicans slipped in fixes to the state Dept. of Environmental Protection’s chronic delays in issuing permits related to shale drilling (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). As we said at the time, the writing was already on the wall–Democrats would lobby to remove the DEP fix and leave the severance tax. The DEP fix (surprisingly) continued in further revisions to the budget plan–until yesterday, when the DEP fixes came out. Fortunately there is still no severance tax. However, Republicans have floated a plan to nearly double the tax on hotel/motel rooms. Such a tax would make Philadelphia’s hotel tax a staggering 21.25%, the highest in the nation! Gov. Tom Wolf is (so far) not commenting on the hotel tax idea–he still wants a severance tax and said so yesterday. So although a severance tax appears dead, and we think it’s 99% dead, it’s not yet 100% dead–so we need to remain vigilant in our efforts to kill it. And although the fixes to the DEP would be most welcomed, they won’t happen as part of the budget. There’s still some hope those fixes will happen apart from the budget bill. Here’s the latest word on PA budget negotiations…
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    FERC Advances Plan to Reverse Part of TGP to Haul M-U NGLs to Gulf

    There’s lots of acronyms in that headline, so right up front let us restate the headline in clearer language: The Federal Energy Regulatory Commission (FERC) has just taken the next step to advance a project by Kinder Morgan to reverse a portion of the mighty Tennessee Gas Pipeline (TGP) to reverse its flow, to go from the northeast to the southwest, in order to haul Marcellus/Utica natural gas liquids (NGLs) to the Gulf Coast. Currently TGP hauls natural gas (not liquids) from the Gulf to the northeast. With a bumper crop of natural gas produced by the Marcellus/Utica, gas from the Gulf is no longer needed. Kinder Morgan, the owner/operator of TGP, first floated the idea to reverse 964 miles of their pipeline back in 2013 (see KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South). The pipeline reversal is part of the broader $4 billion Utica Marcellus Texas Pipeline (UMTP) project. The first step in making the project a reality is to get FERC’s permission to “abandon” (stop using) the 964-mile segment, called Pipeline No. 1, from Louisiana to Ohio. TGP filed to get permission to abandon it in Feb. 2015. Last Friday FERC granted permission for TGP to abandon that segment of the pipeline. Plenty of people objected to the plan, including existing natural gas customers along the 964 miles who now get their gas from TGP. FERC investigated all claims and found the project will not negatively impact the environment, or the pocketbooks, of those who objected. The question now is, when will work begin to abandon that portion of the pipeline?…
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    FERC’s Rapid Response in Sabal Trail Case Shuts Down Sierra Club

    In August the D.C. Court of Appeals ruled in a case that (we previously thought) may have long-term, very negative consequences for the oil and gas industry related to pipeline development (see DC Court of Appeals Legislates New Law re FERC & Global Warming). The litigious, anti-fossil fuel radicals of the Sierra Club previously filed a lawsuit against the Federal Energy Regulatory Commission (FERC) blaming FERC for not considering mythical man-made global warming as it conducted a review of three pipelines in the southeast. The Southeast Market Pipelines Project (SMP) is an umbrella project for three natural gas pipelines in Alabama, Georgia, and Florida. The linchpin of the project is the Sabal Trail pipeline, which travels from Tallapoosa County in eastern Alabama, across southwestern Georgia, and down to Osceola County, Florida, just south of Orlando (nearly 500 miles). The Sierra Club said the three projects together didn’t take into consideration an increase in carbon and methane that would result from the three projects serving electric generating plants, and that said carbon and methane will contribute to global warming. The D.C. Court of Appeals agreed and instructed FERC to reconsider its environmental assessment of the three projects–vacating an approval of the main part of the project, the Sabal Trail pipeline. In a brilliant move, last week FERC filed a draft supplemental environmental impact statement (SEIS) to fulfill the court’s order. In it, FERC looks at the potential for extra carbon/methane in the atmosphere from several electric generating plants fed by the SMP pipelines. As for evaluating the overall effect on Mom Earth, FERC said there currently is no accurate method available that can do it. In other words, this lawsuit that the Clubbers so fervently thought would lead to stopping all sorts of projects just fizzled out (we can’t be happier) thanks to FERC’s quick action. FERC has effectively shut down the Sierra Club’s best chance of stopping pipeline projects…
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    Green, OH Spends Big $ on 2 Appeals in Bid to Stop NEXUS Pipeline

    Back in May MDN told you about the antis running the City of Green, Ohio (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). Green City Council voted to use $100,000 of taxpayer money to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” Looks like the law firm is earning at least some of that considerable amount (total bill so far: $67,367). The strategy the lawyers have adopted and now implemented is to file two appeals–one with the Sixth Circuit Court of Appeals, the other with the Ohio Environmental Protection Agency’s appeals board. The Green antis hope one or both will throw up a roadblock to slow, and ultimately stop, the NEXUS Pipeline from getting built. NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, was the first major pipeline project to get approved after the Federal Energy Regulatory Commission (FERC) once again had a quorum (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Less than two weeks ago the Ohio EPA issued a federal water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). Green is asking OEPA to reconsider their action in issuing the permit. Here’s the latest in the ongoing war against fossil fuels…
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    Wayne Landowners Will “Fight Like Never Before” to Stop DRBC Ban

    Landowners in Wayne (and Pike) counties in northeastern Pennsylvania are not going to stand by and allow their property rights to be stripped away from them. Two weeks ago the Delaware River Basin Commission (DRBC), which has had an ongoing, “temporary” ban on fracking within the Delaware River Basin since 2010, voted to begin the process of implementing a permanent ban (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). That has folks like Wayne County dairy farmer Brian Smith hopping mad. He said if the DRBC bans fracking, “people will fight for their property rights like they’ve never fought before.” DRBC spokesman Clarke Rupert is asking the public to “not prejudge the proposed rules,” which is a joke. What he means is, “Lay down and let us kill your property rights, and don’t say anything while we do it.” Landowners in NEPA are not about to let that happen. Good for them…
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    Using NAFTA, US Co. Sues Canada for Blocking Quebec Utica Drilling

    Lone Pine Resources, a U.S.-based driller, has a huge amount of Canadian Utica Shale acreage in the province of Quebec. As we reported in 2012, they own 398,850 gross (240,320 net) acres of leases (see U.S. Driller Sitting on Big Canadian Utica Shale Reserve). The problem is, Quebec won’t allow fracking. However, that is changing. In September the government published draft drilling regulations (see Quebec Government Publishes Draft Utica Fracking Regulations). There is an exception. Some (we’re not sure how much) of Lone Pine’s Utica acreage sits UNDER the mighty St. Lawrence River. In 2011 Quebec passed a law that even if fracking comes to other portions of the province, it will never be allowed under the river. So Lone Pine is using a tribunal that hears NAFTA (North American Free Trade Agreement) cases, to ask for $103.6 million in compensation for being robbed of their asset by the Quebec government…
    Read More “Using NAFTA, US Co. Sues Canada for Blocking Quebec Utica Drilling”

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    Shale Insight 2017 – Day One News Roundup

    MDN is once again attending the Shale Insight event–in Pittsburgh. Yesterday was the first day of the event. The crowd was definitely smaller than last year when then-candidate Trump spoke to attendees. However, Day One saw a number of heavy-hitting speakers, including Secretary of Labor Alexander Acosta, Deputy Secretary of Energy Dan Brouillette, XTO Energy President Sara Ortwein, Chevron Appalachia President Stacey Olson, and People’s Natural Gas CEO Morgan O’Brien. Marcellus Shale Coalition President Dave Spigelmyer served as master of ceremonies and seemed to be everywhere-present during the event (how does he DO that?). From the opening session to the exhibit floor to attending the breakout sessions, MDN editor Jim Willis made the rounds–and took lots of notes. In the coming days he will write up those notes and share them. For now, we have links and extracts of articles from other publications attending and reporting on this year’s Shale Insight…
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    Bad Blood: Rover Pipe CEO Sends Caustic Letter to Ohio EPA, FERC

    Last week MDN brought you the news that Ohio EPA’s director, Craig Butler, has kind of tipped over into the deep end with his rantings and ravings about Rover Pipeline (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). Butler held a conference call with the media where he made wild allegations. What seems to have precipitated Butler’s media bender is a decision by the Federal Energy Regulatory Commission (FERC) earlier in the week to allow Energy Transfer, builder of Rover, to resume horizontal directional drilling (HDD) in most Ohio locations, after banning it for several months (see FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes). ET has responded to Butler’s tirade with a hard-hitting (we’d call it caustic) response. In a letter to Butler, carbon copied to FERC, Rover President & CEO Matthew Ramsey essentially says Butler and the OEPA is trying to cover its own mistakes in not requiring storm water permits for most of the project’s life–then coming along after the fact saying Rover didn’t apply for those permits (when OEPA never required them in the first place). Ramsey also said Butler “refuses to recognize the law” that FERC, and not OEPA, is in charge of this project. It gets better. Ramsey says he is “mystified by what you are trying to achieve” by requiring something (said storme water permits) Rover is now voluntarily doing–permits that OEPA itself has approved! This letter really takes the gloves off and (our words) calls Butler a lunatic. Read it for yourself and see what you think…
    Read More “Bad Blood: Rover Pipe CEO Sends Caustic Letter to Ohio EPA, FERC”

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    Broome Virtual Pipe Project in Limbo, Fenton Board Refuses to Act

    In early September, a Broome County, NY judge ruled that the Town of Fenton (Binghamton area) Planning Board did not take a hard enough look at environmental and traffic issues related to their approval of NG Advantage’s plan to construct a facility in the town to compress and load natural gas onto tractor trailers for delivery to regional customers who desperately need the gas–what is called a “virtual pipeline” (see Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again). The lawsuit was brought by a local school district, which a Freedom of Information Act request reveals is paying approximately $40,000 in legal fees to high-priced lawyers to win the case, stopping the project (we hope Chenango Valley School District taxpapers appreciate their taxes going up to pay for it, and less money available in the budget to “educate” their precious children). NG must now resubmit the project for approval. On Tuesday night, NG did just that–re-applying to the Fenton Town Planning Board. A meeting was held at the local fire hall where some 250 people showed up. The crowd contained those both for and against the project. Unfortunately two of the seven Planning Board members were not present–possibly having resigned due to extreme pressure from bullying antis. So then there were five. Three of the five voted to become the lead agency to review the project, which is the first step in the process. However, three of seven is not a majority. Which puts the project in limbo, not able to go forward. What happens next?…
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    PennEast Pipeline’s Sole Compressor Station Approved by PA Town

    PennEast Pipeline has just achieved yet another milestone on its way to getting built. At a meeting last Thursday, the Board of Supervisors for Kidder Township (Carbon County, PA) voted 5-0 in favor of issuing a permit to PennEast to site the one-and-only compressor station the 120-mile pipeline will need. Proving yet again that most Pennsylvanians are in favor of this project, contrary to the mainstream/leftist media drumbeat against it. PennEast is a $1 billion primarily 36-inch pipeline from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The company expects final Federal Energy Regulatory Commission (FERC) approval any week now. There are still a few hurdles left–mostly in New Jersey. But those hurdles are certainly surmountable. The radical Sierra Club and THE Delaware Riverkeeper are adamantly opposed and continue to try and throw up legal (and regulatory) roadblocks. No matter. This important pipeline will get built–and this compressor station approval is one more bit of evidence that it will get built…
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    Marcellus Industry Keeps a Close Eye On 3 Pending Bills in PA

    The Marcellus industry is closely watching three pieces of legislation sitting in the Pennsylvania legislature, bills that the industry fervently hopes do not pass. One of the bills is House Bill (HB) 557, introduced by Rep. Garth Everett, which would amend/fix the Oil and Gas Lease Act to ensure landowners get a minimum royalty of 12.5%, regardless of post-production deductions (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Another bill is HB 1624, which would slap a 6.5% severance tax on the drilling industry, with an allowance for drillers to deduct the current impact fee they already pay (the equivalent of a severance tax). So in essence, HB 1624 doubles or triples the existing severance tax (i.e. impact fee) to obscene new highs. The third bill is HB 542, the state budget bill for 2017 passed by the Senate (not the House), which would initiate a new 2% severance tax on top of the existing impact fee (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Two of the three bills are unlikely to get passed during this session. The third is a toss-up. Which is which?…
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    CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court

    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, is about ready to begin construction–any time. NEXUS got final approval for the project from the Federal Energy Regulatory Commission (FERC) in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Last week one of the final remaining hurdles came down when the Ohio EPA granted a water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). The only cloud on the horizon are multiple lawsuits and regulatory requests filed by anti-fossil fuel groups, including CORN (Coalition to ReRoute Nexus, folks we call CORNballs), and the far-left Sierra Club. Both groups have launched lawsuits and regulatory actions against the pipeline. Those efforts, which increasingly are long-shots, continue. Here’s what CORN and the Sierra Club are doing now that Ohio EPA has given the project its blessing…
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    PA House Member Intros Resolution to Stop DRBC Frack Ban Effort

    Rep. Jonathan Fritz

    Pennsylvania House of Representatives member Jonathan Fritz, Republican from Wayne County, PA, is one of the rising stars in the PA House. MDN editor Jim Willis has met and spoken with Rep. Fritz twice. Great guy. Conservative. Head screwed on straight. Fritz serves areas of both Wayne and Susquehanna counties in the northeastern corner of PA. Does Wayne County sound familiar? It should. It’s one of two counties the radicalized Delaware River Basin Commission (DRBC) wants to ban fracking in (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). A few weeks ago, the liberal Democrat governors of three states–PA, NY and DE–had their representatives vote to begin the process of placing a permanent ban on hydraulic fracturing (fracking) within the Delaware River Basin–supposedly because fracking is a threat to some 15 million people who get their drinking water from the Delaware River basin. Just one teeny tiny problem. Fracking IS allowed, and has been happening for over 10 years, in the neighboring Susquehanna River Basin, where over 4 million people get their drinking water. The SRBC (Susquehanna River Basin Commission) wisely does not restrict fracking–they only manage water withdrawals. There have been NO water issues in the SRBC. Yet the libs in the DRBC demand a ban based on a false meme of water contamination risk. Last week, Rep. Fritz introduced House Resolution 515, which (if passed) calls on the DRBC to abandon its efforts to strip away the property rights of people in the DRBC’s jurisdiction by enforcing a frack ban…
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    Canadians Approve TransCanada Pipe Lowball Plan to Compete with M-U

    Looks like begging works. 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). In hearings before the NEB two weeks ago, the Canadian Association of Petroleum Producers pleaded their case that the plan get approved (see Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U). 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. The NEB bought it, and has just approved the lower rates…
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    Corrupt DEC Bans PA Marcellus Brine in NY, Tightens Other Brine Use

    The Andrew Cuomo-corrupted New York State Dept. of Environmental Conservation (DEC), run by NRDC gang member Basil Seggos, has just slammed the door on New York towns using brine from the Pennsylvania Marcellus. Earlier this week the DEC posted new final regulations as part of “strengthening” the state’s solid waste regulations, referred to as Part 360. Brine is another name for produced water. When you drill a hole deep in the ground, well below the water table (which sits at maybe 200 feet down), over time water from the depths (a mile or more down) will come to the surface. This is not wastewater used in fracking (called flowback), but naturally occurring water (brine). It’s called brine because it contains a lot of minerals–far “saltier” than ocean water. There are a number of ways to dispose of all that water coming out of drilled wells for years after they are drilled–dispose of it via an injection wells, recycle it, or in some cases, treat it and use it as a deicer on roadways. Many towns use brine for that purpose. The DEC’s new regulations stipulate that if a town wants to use brine from conventional oil and gas wells, that’s fine (with certain restrictions). But if the brine comes from a Marcellus Shale well–it’s banned. Keep in mind there is virtually no chemical difference between the two. Which leads us to the conclusion that this is one more very intentional swipe at the shale industry by a state that is closed for business…
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