Regulation

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    Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe

    From the day the first backhoe began digging in Ohio, it has appeared that Ohio EPA director Craig Butler has had a grudge against Rover Pipeline. We’re not saying Rover hasn’t had its fair share of environmental transgressions that need to be monitored and rectified. But Butler has been on a one-man mission to punish Energy Transfer, the builder, demanding (without legal authority) insanely high “fines” from ET Rover. At first it was $400,000. Then $900,000. Now Butler says ET owes the state $2.3 million! Butler is trying to draw in Ohio’s Attorney General into the confusion in order to shake down Energy Transfer and make them pay. Yesterday Butler held a conference call with the media (MDN wasn’t notified/invited) where he made wild allegations. What seems to have precipitated Butler’s media bender is a decision by the Federal Energy Regulatory Commission (FERC) on Monday to allow ET 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). On yesterday’s call Butler said, “I’m not overly happy that they’re [FERC] allowing them [Energy Transfer] to restart operations while we [Craig Butler, Ohio EPA] have outstanding issues.” Butler has issues all right. Butler is kind of drunk on his own power. It’s time for someone (maybe the AG?) to investigate Butler and find out if he’s colluding with Big Green groups. Is the OEPA short on money in its budget? Where does the revenue from such fines go? And on what statutory authority can OEPA levy a fine on a FEDERAL project? Inquiring minds want to know…
    Read More “Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe”

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    Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover

    At a staged media event yesterday, Ohio EPA director Craig Butler had no end of insults for Energy Transfer and their Rover Pipeline project, making wild claims that the company now owes the state $2.3 million in fines (see today’s companion story). However, at the same media event, Butler had faint praise for another project–NEXUS Pipeline. The OEPA issued a federal water permit for the project on Tuesday. 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. The project is co-owned by DTE Energy of Detroit and Spectra Energy (now part of Canadian company Enbridge). NEXUS got final approval from the Federal Energy Regulatory Commission 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). At yesterday’s media circus, Butler said he and his agency have learned from their “mistakes” with Rover, and that NEXUS’ application includes much more detailed plans. Although OEPA likes the NEXUS paperwork, the agency is requiring more “contingency and storm water planning” from NEXUS as a condition of the permit…
    Read More “Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover”

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    New MarkWest Processing Plant Approved by Smith Twp in SWPA

    Smith Township, Washington, PA

    In August MarkWest Energy (now part of MPLX) briefed Smith Township (Washington County, PA) officials on plans to build a new natural gas processing plant (see Update on MarkWest Processing Plant Proposal for Smith Twp). The project was first introduced last fall, but then went quiet until May of this year. MarkWest plans to initially building one cryogenic plant and one de-ethanizer at what it calls the Harmon Creek Complex. Eventually MarkWest wants to build four cryogenic plants and two de-ethanizers at complex. Smith officials understandably had questions and wanted certain things in writing before they would consider issuing a “conditional use” permit for the project. Apparently the questions got answered. On Monday, Smith supervisors voted 3-0 to approve the project. However, the backhoes are not firing up just yet. Before the project can get built, the PA Dept. of Environmental Protection must issue an air permit (GP-5) for the project. Anti fossil fuelers were not happy with Smith’s approval, claiming MarkWest has been hiding the full scope of the project…
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    PennEast Pipe Files Water Permit Request with USACE, Antis Erupt

    Click map for larger version

    Last week PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, filed a request with the U.S. Army Corps of Engineers for water crossing permits (full copy below). PennEast has faced a series of legal challenges–in particular from virulent Big Green groups THE Delaware Riverkeeper (Maya van Rossum) and the New Jersey Sierra Club (Jeff Tittel). Somehow Big Green groups seem to have been able to exert undue influence over the New Jersey Dept. of Environmental Protection, which rejected granting water permits in June (see NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?). However, PennEast continues to make progress. In April the Federal Energy Regulatory Commission (FERC) issued a favorable, final environmental impact statement for the project, which is typically a prelude to issuing a final go-ahead (see FERC Issues Favorable Final EIS for PennEast Pipeline Project). Earlier this year, in February, the Pennsylvania Dept. of Environmental Protection issued a water permit for the project, which is being challenged in court by Big Green groups (see PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP). PennEast acknowledges the Army Corps will still need information from other government agencies before it grants a water permit–but that’s OK. PennEast is simply getting its ducks in row by filing now, which has antis like van Rossum and Tittel in a dither…
    Read More “PennEast Pipe Files Water Permit Request with USACE, Antis Erupt”

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    Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic

    Rich, snobbish homeowners in an “upscale” Philadelphia suburb development are asking an appeals court to stop Sunoco Logistics from building the Mariner East 2 pipeline through the edge of their high-priced development because, they claim, the digging is disturbing the dirt (which is what digging does) and disturbing the dirt is causing lead and arsenic to become dislodged. The lead and arsenic are supposedly in the dirt as a result of pesticides used when the land was an apple orchard. The claim is flat out BS–Barbara Streisand. The Andover Homeowners Association in Thornbury Township (Delaware County) is the same group that a few weeks ago acted like five year-olds by intentionally stepping over a painted line put there to protect them from a ME2 construction zone (see Philly Antis Step Over the Line (Literally) at ME2 Pipeline Site). Spoiled rotten children grow up to be spoiled rotten adults. Here’s the latest tactic to stop a pipeline from the gentry class–just because they don’t like how digging a pipeline makes their development look to the neighbors…
    Read More “Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic”

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    North Carolina Fracking Commission Postpones First Meeting

    In 2012 the North Carolina legislature cleared the way for the state to allow horizontal fracking of shale (see NC Law to Legalize (and Encourage) Fracking Advances). The law gave state officials two years to come up with rules and regulations to govern fracking in NC. Along the way a lawsuits were launched, slowing things down (see Judge Puts NC Fracking on Hold Pending Outcome of Lawsuit). The case got resolved in January 2016. However, even if a company wants to begin drilling, members of North Carolina’s Oil & Gas Commission, who would approve applications, have not been sworn in (see NC Fracking Remains in Limbo, 5 Yrs After Legislature Approved It). Nine commissioners were appointed by outgoing Republican Gov. Pat McCrory and the Republican legislature–but new Gov. Roy Cooper (Democrat) refuses to swear in the commissioners and allow fracking to begin. One more Democrat who acts like a dictator. Where have we seen that before? No matter. The new Oil & Gas Commission isn’t waiting for Cooper. The Commission scheduled its first official meeting yesterday, in Sanford. Antis accused the agency of “going rogue” (they should talk!). However, at the last minute, on Tuesday, the Commission’s new chairman, Jim Womack, said the first meeting will be postponed until October or November, to give more time for state ethics officials to review economic disclosure statements of commission appointees for potential conflicts of interest. Looks like it will be six years before any fracking takes place in the Tar Heal State…
    Read More “North Carolina Fracking Commission Postpones First Meeting”

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    Quebec Government Publishes Draft Utica Fracking Regulations

    Although the primary focus of Marcellus Drilling News has always been on Marcellus and Utica Shale gas (and oil) as found in the northeastern U.S., the Utica Shale also underlies part of Canada’s Quebec province. And from time to time we highlight news concerning the Utica in Canada. There hasn’t been much news to highlight over the years since Quebec has had a moratorium on fracking at least as long as New York’s moratorium (NY’s ban as of today has been 9 years, 1 month and 29 days). But as we reported back in December, something of a minor miracle happened–the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan” (see Fracking in Canadian Utica Shale Takes Big Step Closer to Reality). The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Fracking will not begin immediately. The bill does, however, mean that new regulations will come along in 2017 and after that, it’s an almost certainty that fracking will begin. Those draft rules have finally been released (full copy of the 266-page document below), nearly 10 months later. Questerre Energy, which owns Canadian Utica leases in Quebec and has long lobbied get the government to allow Utica drilling, shares the good news that we have taken another step closer toward fracking in Quebec…
    Read More “Quebec Government Publishes Draft Utica Fracking Regulations”

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    PA Dem Senator Calls for “Study” to Address DEP Permit Delays

    A Pennsylvania Senator from Wilkes-Barre, John Yudichak (Democrat) has floated a “memoranda” among his Senate colleagues asking them to join him in sponsoring a resolution (copy below) for an “independent performance review” of the state Dept. of Environmental Protection (DEP) and its shale permitting program. Since Tom Wolf assumed office as governor of Pennsylvania in January 2015, the DEP has been in a downward spiral when it comes to the speed with which they approve permits for the Marcellus Shale industry. The DEP has a policy of issuing erosion and sedimentation permits 14 days from the date of application. These types of permits are common and necessary when building roads, well pads, etc. Lately it has taken the DEP 250 days to issue those permits! Permits related to drilling wells are supposed to take no more than 45 days. Those permits now average 93 days. The DEP is hopelessly backlogged–and it’s getting worse. When PA’s traitorous Republican Senate sold out and signed on to a Marcellus Shale severance tax back in July, the Senate also approved (as part of the budget bill) fixes to speed up the permitting process (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). Senators included a provision to have third party contractors–people outside of the DEP–review applications at the DEP, including permits for oil and gas drilling, when the DEP can’t review those applications in a timely manner. There’s also a provision that certain permits, like those granted to drillers for sediment and erosion, will automatically be granted if the DEP drags its feet and doesn’t grant the permit by the current, specified deadline (45 days, with a possible 15 day extension). Since DEP can’t seem to fix its own mess, the Republican Senate is willing to “lend a hand” to help them get it done. Democrats are adamantly opposed to the plan. Enter Yudichak and his plan to “study” the situation. This is nothing more than a typical delay and stall tactic. Appear to be addressing the problem when you really aren’t. To which we say–“too much, too little, too late” Sen. Yudichak. Your guy (Wolf) has had nearly three years to fix it and he hasn’t–it’s time to let the Republican legislature get the job done…
    Read More “PA Dem Senator Calls for “Study” to Address DEP Permit Delays”

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    Congress Needs to Fix State Vetoes of Federal Pipeline Projects

    As we have reported, history was made last Friday when the Federal Energy Regulatory Commission (FERC) overruled the New York Dept. of Environmental Conservation’s (DEC) denial of a water permit for Millennium Pipeline’s tiny 7.8 mile pipeline spur from the main Millennium Pipeline to a natural gas power plant under construction in Orange County, NY (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC eventually denied the water permit, but not before taking 19 months to do it. According to federal law, states have a maximum 12 months in which to make a federal Clean Water Act water permit decision. FERC said NY took too long, and therefore waived the permit, allowing Millennium to proceed with construction of the pipeline. The federal law governing all of this was written to give states a voice, but not a veto, of federal pipeline projects. Whether or not a project gets built is NOT up to the individual states–it is up to FERC and (if necessary) the U.S. Court of Appeals. The law specifically foresaw one state denying a project that another state needs and wants. However, rogue states like socialist NY are pushing the bounds of law by denying pipeline projects authorized by FERC. So what if NY rejects a pipeline, denying a water permit, but does so within the 12 month time period? What then? The legal beagles at the Blank Rome law firm address that issue on their environmental blog. Mike Krancer (former PA DEP Secretary), Fred Lowther and Margaret Anne Hill write that it’s time for Congress to act to clarify the law and ensure NY (and other states) cannot block federally approved pipeline projects…
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    Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule

    Earth moving has begun for a compressor station in Columbia County. (Williams Partners)

    Well that didn’t take long! Yesterday MDN brought you the fantastic news that the Federal Energy Regulatory Commission (FERC) had granted Williams a certificate/go-ahead to begin construction on Atlantic Sunrise, a $3 billion, 198-mile natural gas 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 FERC Greenlights Construction of Atlantic Sunrise Pipeline). FERC issued their permission to begin construction last Friday. Based on a previous Williams statement, we expected construction to begin tomorrow, on Sept. 20th. However, as soon as Williams had the certificate in their hands, they began construction–LAST FRIDAY. Where? Williams fired up bulldozers at two locations–one in Wyoming County, the other in Columbia County (both in northeast PA), to clear land for two new compressor stations they will build as part of the project. Yesterday both Williams AND Cabot Oil & Gas issued the same press release to announce construction has begun. Interesting that Cabot issued the release too, showing just how important this project is to Cabot’s future (and to their stock price)…
    Read More “Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule”

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    FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that (will eventually) run from PA, WV and eastern OH through OH into Michigan and on to Canada–began flowing natural gas through a large portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). In the past three weeks, 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. 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. Last week OEPA asked FERC to continue blocking HDD activity until they (OEPA) are satisfied (see Rover Pipeline Still Battling Ohio EPA, Asks FERC to Lift HDD Ban). 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? Now we know. They’re listening to Rover. Yesterday FERC lifted the ban on HDD for nine key locations–NOT including the Tuscarawas River site. FERC says they are still investigating that spill. FERC said, in lifting the HDD ban, that “Rover has demonstrated sufficient progress on the required rehabilitation and restoration of the areas affected by the inadvertent release and drilling mud contamination” and that the company is following FERC’s 8 Commandments. We’re pretty sure yesterday’s FERC decision won’t make the OEPA happy…
    Read More “FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes”

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    Constitution, NFG Pipes to Seek FERC Relief from NY DEC Tyranny

    Yesterday we told that you history has been made–the Federal Energy Regulatory Commission (FERC) has broken the back of the New York Dept. of Environmental Conservation (DEC) by overturning the DEC’s decision to block a short pipeline Millennium wants to build to a power plant in Orange County (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC has also blocked federally-approved pipeline projects in two other cases–the Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas (a Williams project), and the Northern Access Pipeline, a $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY, to carry Marcellus gas northward (a National Fuel Gas Company project). Given Millennium’s success in having FERC overrule NY DEC, one would think these other two projects would also file requests with FERC for the same thing. According to Reuters, NFG already has filed such a request, and Williams is about to…
    Read More “Constitution, NFG Pipes to Seek FERC Relief from NY DEC Tyranny”

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    Sierra Club Radicals Use FL Court Case to Challenge 2 M-U Pipelines

    In August, the D.C. Court of Appeals ruled in a case that 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 profoundly 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 Sierra Club is known for filing frivolous lawsuit after frivolous lawsuit. This is just one in a long line. The Southeast Market Pipelines Project 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), feeding gas-fired power plants in the region. The Sierra Club antis said the three projects together didn’t take into consideration an increase in carbon and methane that would result from the three projects getting approved, and that said carbon and methane will contribute to man-made 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. Just one teeny tiny problem (for the antis): all three pipelines–Sabal Trail, Hillabee Expansion and Florida Southeast Connection–are up and running. This decision likely will not shut them down. But the decision does have a big impact on projects not yet built. Drunk on their earlier success, yesterday the Sierra Club filed two requests (demands?) with FERC requesting the agency redo their already-done environmental impact statements for Dominion’s $5 billion Atlantic Coast Pipeline from WV through VA and into NC, and for EQT’s $3.5 billion Mountain Valley Pipeline, from WV into VA. The Sierra Club says the Sabal Trail decision is all they need to force FERC into redoing the EIS’–to force FERC to consider mythical man-made global warming…
    Read More “Sierra Club Radicals Use FL Court Case to Challenge 2 M-U Pipelines”

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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!…
    Read More “FERC Greenlights Construction of Atlantic Sunrise Pipeline”

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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…
    Read More “PA House Should Nuke Anti-Landowner Section 1610 of Budget Bill”