Regulation

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    Why the PA House Must Reject 1-Sided Budget/Tax Deal from Senate

    We’ve noticed a meme, largely started by an Associated Press article endlessly repeated and published in dozens of news outlets across Pennsylvania, that the recent budget deal (with a severance tax) passed by the traitorous Republican-controlled PA Senate “jams a shale tax and industry permits into unhappy package” that now sits before a House that essentially has no choice but to adopt it. Here’s the establishment “received wisdom” in a nutshell: Drillers don’t get what they want (a severance tax), but they do get what environmentalist wackos don’t want (streamlined approvals for permits). And guess what? “That’s politics.” And if you don’t like it, on either side of the equation, you’re an unrealistic dope who doesn’t know anything about politics. We manifestly reject that assertion. Here’s why this deal is one sided–a severance tax only deal. Big Green groups with endless pockets to fund litigation factories are already talking about how if this budget is passed with what they want (a high severance tax) but also with what they don’t want (streamlined approvals for permits), no problem. They’ll just sue to remove the streamlined permits part, leaving drillers with the high severance tax. That’s how “fairness” works for Democrats and antis. Get part of what you want, then litigate the rest–force it on people who don’t want it. That’s the strategy laid out in the AP article claiming both sides are unhappy, implying it’s a good deal because both sides are getting something they want and something they don’t want. The clear signal being sent by environmentalists is that they’ll litigate their way to happiness. Meanwhile the Marcellus industry will get the shaft, which is why the House MUST reject this budget as written…
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    FERC Quorum Finally Restored – Full Speed Ahead on Pipe Projects

    Yesterday the U.S. Senate finally approved Neil Chatterjee and Robert Powelson as the newest commissioners for the Federal Energy Regulatory Commission (FERC). Which means FERC now has a quorum of three voting members and can, once again, begin issuing final approvals for important pipeline projects that are currently stalled waiting for an approval. Among those important projects (in the Marcellus/Utica region) are Dominion’s Atlantic Coast Pipeline, PennEast Pipeline, NEXUS Pipeline and Mountain Valley Pipeline. FERC has not had a quorum of three (or more) voting members since February, when Norman “cry baby” Bay left the commission in a huff in early February over being demoted as chairman of FERC to just regular member (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). President Trump was tardy in appointing two new members. But then New York Sen. Chuck “the schmuck” Schumer decided he would delay it longer, just because he hates Donald Trump. Yesterday the Senate finally took was is called a “unanimous consent” vote, a rubber stamp approving the new members. And now they go to work. Immediately, the sole commissioner left at the agency, Democrat Cheryl LaFleur, tweeted this message: “Happy day! Very excited to work with new Commissioners Chatterjee and Powelson!” We share her enthusiasm!…
    Read More “FERC Quorum Finally Restored – Full Speed Ahead on Pipe Projects”

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    Groundhog Day: Feds Back in Dimock, PA for More Water Testing

    Just when you thought we’d heard the last of “Dimock” and “fracking poisons water” nonsense, the storyline as pushed by mainstream fake news has come roaring back to life–thanks to the Trump Administration. Dimock, Pennsylvania was made famous in Josh Fox’s faux documentary Gasland, which aired on HBO a bizillion times. It was Fox’s 15 minutes of fame. He lied about fracking, painting it as an evil practice that polluted water wells around Dimock. His lies were later exposed by a real documentary called FrackNation (by Phelim McAleer). Over the past 7+ years the Pennsylvania Dept. of Environmental Protection (DEP) as well as the federal Environmental Protection Agency (EPA) and private researchers have tested water wells around Dimock. Repeatedly. For years. The conclusion? Fracking by Cabot Oil & Gas may have (not 100% assured) caused methane to migrate into some of the wells (a charge Cabot strongly refutes). However, at no time did any of government or private agencies testing find any fracking chemicals in any of the wells. Methane migration can be mitigated. It can be fixed. You don’t die from drinking water with methane in it. Most people in Susquehanna County (where Dimock is located) drink water with methane in it every day and have been for over 200 years! Why do you think Cabot’s wells are so productive? They’re in some of the most methane-rich rock in the U.S. The wells of 14 families along the Carter Road area in Dimock have been repeatedly tested–with no fracking chemicals found. Yet the federal Agency for Toxic Substances and Disease Registry (ATSDR), which is a federal public health agency part of the U.S. Department of Health and Human Services (executive branch, which is now under Trump leadership), says they are coming to Dimock to test both water AND air at 25 homes around Dimock. The poster boy for their testing is Ray Kemble, who keeps junk cars on his property and carries a little brown jug around with him to anti-fracking rallies. Kemble has been trying to shake down Cabot for big money for years, with no success, claiming after they began drilling his water well became polluted…
    Read More “Groundhog Day: Feds Back in Dimock, PA for More Water Testing”

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    PA Senate Sneaks in Provision Hurting Landowners w/Old Leases

    What’s this? The Pennsylvania State Senate, which is controlled by the Republican Party, has added insult to injury. We’ve already told you about Republican traitors in the Senate who sold out their House counterparts by voting for a disastrous severance tax to raise money to give away to teachers’ unions (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Little did we know they also sneaked in, in the dead of night, a provision in the budget bill that will make it harder for PA landowners with old oil and gas leases to renegotiate those leases. Sometimes landowners have old oil and gas wells on their property, drilled decades ago before horizontal drilling and fracking were combined. And those leases were signed for pennies on the dollar. These days when shale drillers come calling, landowners can often command thousands of dollars per acre in signing bonuses. But a provision in the fiscal code, passed as part of the budget the traitorous Senate passed, would limit the ability of landowners to renegotiate those old leases, allowing drillers to revive expired leases and not pay new lease bonuses…
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    NY DEC Holds Sham “Hearing” for Power Plant Pipeline

    New York’s corrupted Dept. of Environmental Conservation (DEC) is running scared. For 19 months the DEC has intentionally delayed granting a tiny, 9-mile spur Millennium Pipeline wants to build in Orange County, NY the necessary federal 401 stream crossing permit it needs. Millennium took the DEC to federal court, but the court refused to get involved, telling Millennium if the DEC is delaying, the Federal Energy Regulatory Commission (FERC) can jump in and override the DEC (see DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay). So that’s what Millennium did. They asked FERC to grant the stream crossing permits themselves (see Showdown: Millennium Asks FERC for Permission to Ignore NY DEC). Sensing they are now in a death spiral and will lose control over not only the Millennium project, but also other projects like the Constitution Pipeline and Northern Access projects the DEC has been blocking, the DEC responded and asked FERC to wait until August 30th before granting the certificate–so the DEC could grant it (or not) themselves (see Corrupt NY DEC Fires Back at Millennium, Claims Deadline is Aug 30). So the DEC held a public hearing Wednesday night. A sham. Kabuki theater. It was the DEC going through the motions before they get off their rear-ends and grant the certificate they could have granted more than a year ago. The public hearing in Wawayanda, NY did not disappoint, with insane anti-fossil fuelers parading before the microphones and cameras, predicting the end of the world if this 9-mile pipeline to feed a gas-fired power plant gets built…
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    Anti-Pipe Objections Aired in Wrong Forum in Morgan County, WV

    As MDN has previously reported, Mountaineer XPress Pipeline includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Just last month the Federal Energy Regulatory Commission (FERC) gave Moutaineer XPress and its companion project, Gulf XPress, a favorable final environmental impact statement (see FERC Issues Favorable Final EIS for Mountaineer/Gulf XPress Pipes). The only thing left now is for FERC to issue a certificate for construction to begin–which won’t happen until Sen. Chuck Schumer and obstructionist Democrats allow a Senate vote on new commissioners, to restore a voting quorum at FERC. Don’t hold your breath. At any rate, a few local residents in Morgan County, WV appeared before the Morgan County Commission last night to complain about the project. The residents were there at the prompting of several Big Green groups, who organized the effort. Problem is, Morgan County can’t do a thing about the pipeline project. It was the wrong forum to complain in, but that didn’t stop them…
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    Rover Drilling Contractor that Spilled Kept ‘Incomplete Records’

    Rover is Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid”. That is, they sprung a leak and spilled nearly 2 million gallons of drilling fluid (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The leak did not spill into the Tuscarawas River (thankfully), but into a swamp (i.e. “wetland”) next to the river. The Ohio Environmental Protection Agency (OEPA) investigated the spill (following a tip) and claimed to find the presence of diesel fuel in the spilled mud (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). OEPA reported their findings to FERC and FERC launched an investigation into the Tuscarawas spill. FERC hired engineering firm J.D. Hair & Associates to review what went wrong. The Hair report is in. The reviewers can’t say with any confidence whether or not Rover (Energy Transfer) and the contractor doing the underground horizontal direction drilling (HDD) at Tuscarawas, Pretec Directional Drilling, followed project requirements. Why? Because of “very limited” documentation. That is, poor record-keeping. The 425-page report (full copy below) does offer some theories as to why Pretec’s HDD drilling leaked: Pretec encountered “sticky clay” while drilling, so they doubled the amount of drilling mud to clean the cutter. The extra pressure forced the mud out of cracks in the ground–and resulted in a 2 million gallon spill…
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    ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company

    Last Friday MDN told you about two Democrat backbenchers trying to make trouble for Energy Transfer (via Rover Pipeline), as well as make trouble for the Federal Energy Regulatory Commission (see Two Democrat Backbenchers Try to Interfere in Rover Pipe, FERC). Sen. Maria Cantwell (from Washington State) and Congressman Frank Pallone (from New Jersey) are using recent problems with the construction of the $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, to target Energy Transfer and FERC. To be sure, Rover has had its issues–with drilling mud spills, water in trenches and knocking down a dilapidated old house that was on a list of historic sites. In a surprising (and frankly, stupid) move, Energy Transfer’s CEO Kelcy Warren wrote a letter responding to lightweights Cantwell and Pallone. He calls a FERC investigation of his company (which is part of what Cantwell and Pallone are demanding), based on problems with Rover, to be “unprecedented” and “extrajudicial.” Warren is right, of course. But he’s not the one who should be making the case. It makes Energy Transfer seem defensive. In the case of backbenchers Cantwell and Pallone, best just to ignore them…
    Read More “ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company”

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    Two Democrat Backbenchers Try to Interfere in Rover Pipe, FERC

    Sen. Maria Cantwell and Rep. Frank Pallone

    A United State Senator from Washington State (left coast) and a Congressman from New Jersey, both of them liberal Democrats, have sent a letter to the Federal Energy Regulatory Commission (FERC) over “troubling reports” regarding Energy Transfer Partners and the Rover Pipeline project. Sen. Maria Cantwell (D-WA) is a ranking member of Senate Energy and Natural Resources Committee. She looks like a kindergarten teacher. Rep. Frank Pallone (D-NJ) is the ranking member of the House Energy and Commerce Committee. He looks like an extra on The Sopranos. In their roles on their respective committees they are asking FERC to conduct a wide-ranging investigation of ET and Rover–even though the pipeline doesn’t traverse a square inch of either Washington State or New Jersey. They begin by regurgitating old news about ET knocking down a dilapidated “historic” house, and move on to leaks of drilling mud. All of it old news. All of it currently being handled/reviewed/remedied. They go on from there to ask FERC to investigate *all* ET projects. While one could say this dynamic duo have an “interest” in the Rover project because of their role on the energy committees to which they belong, it’s a stretch. This is more swamp politics–a couple of obscure backbenchers trying to raise their profile with their own constituents. They don’t care a scintilla about the people in Ohio (or West Virginia) that may or may not have been impacted by the Rover project. The real purpose of the letter is to cast doubt on FERC itself. Near the end of the letter, they ask a series of questions, including a question for how many applications has FERC received over the past 17 years, and how many they have denied. It’s a setup by two backbenchers to try and question the authority (and competency) of FERC. We say let them eat white noise. Refuse to even acknowledge the letter…
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    Sierra Club Asks NC Regulators to Revoke AC Pipeline Contracts

    The radicals at the Sierra Club are taking another run at stopping Dominion’s Atlantic Coast Pipeline (ACP) project in its tracks–before the first inch of pipe is laid. ACP is a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. This time Sierra Club nutters are using a novel approach to try and stop ACP. They’ve asked North Carolina regulators to revoke approval of affiliate agreements by Duke Energy to use the gas that will flow through the pipeline. The Sierra Club’s argument is that the agreements, signed in 2014, are no longer valid. Duke doesn’t need as much natural gas (for electric generation) as they thought they would. And therefore to stay locked into the agreement would be an unfair burden to Duke’s rate payers. If Duke were to pull out of the deals, the ACP project would collapse, which is what Sierra Club happens. Duke has responded that the gas will be used for more than electric generation. Given that NC now has a Dem governor who doesn’t like fracking (see NC Fracking Remains in Limbo, 5 Yrs After Legislature Approved It), and given that regulatory functions come under the oversight of the executive branch, it does raise a minor red flag that the Sierra Club has launched this latest effort. Will it get traction with NC regulators?…
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    FERC Issues Favorable Final EIS for Mountaineer/Gulf XPress Pipes

    In February the Federal Energy Regulatory Commission (FERC) issued a draft final environmental impact statement (DEIS) for two important pipeline upgrades to carry more Marcellus/Utica gas to southern markets–Mountaineer XPress and Gulf XPress (see FERC Issues Favorable Enviro Report for Mountaineer & Gulf XPress). It’s always a good sign when you get a favorable DEIS, because it almost always means you’ll get a favorable final EIS. MDN previously reported on Mountaineer XPress, which includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Gulf XPress consists of constructing seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. Good news. FERC issued a favorable final EIS on Friday…
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    NC Fracking Remains in Limbo, 5 Yrs After Legislature Approved It

    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). That case was resolved in January 2016. However, the NC Department of Environment and Natural Resources (DENR) didn’t let the lawsuit stop them from drilling a series of test holes in Stokes, Scotland, Hoke and Cumberland counties to see whether shale gas is present in those locations (see Lawsuit Won’t Stop NC Agency from Drilling Test Holes in Shale). Unfortunately test results showed that three of the four counties have no measurable presence of Triassic shale and therefore are not suitable for drilling (see Whatever Happened to Fracking in North Carolina?). Even if a company wanted to begin drilling, members of the North Carolina’s Oil & Gas Commission who would approve applications have not been sworn in. 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?…
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    PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers

    As part of the horrible severance tax bill the Pennsylvania Senate passed yesterday (see today’s companion story), Republican Senators placed into the bill what they hope is “an olive branch” (more like a withered twig) by including reforms to the regulatory process they say the drilling industry has been asking for. Senators included a provision to have third party contractors (people outside of the Dept. of Environmental Protection) 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). Those permits are currently taking up to 200 days to be granted. Enough. If the DEP can’t get it done, the permit gets granted automatically or goes to someone on the outside who can get it done. There are other provisions in the severance tax bill as well. Of course these proposed changes have antis in an uproar. You see, “compromise” for antis and Democrats means “you do it all our way, and we give you nothing in return.” That Republicans actually want something in return for voting for a horrible tax bill is beyond belief for antis, who are now squealing like stuck pigs. Here’s what we’ve been able to find out about the proposed changes, the “olive branch” offered by traitorous Republicans, as part of the newly passed severance tax bill…
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    New Lawsuit Against Mountain Valley Pipe Seeks to Emasculate FERC

    In June, a group of radical “environmental” organizations filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit against the West Virginia Dept. of Environmental Protection–for doing their job (see Radicals File Lawsuit Against WV DEP for Approving MV Pipeline). Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network sued the DEP because the department had the audacity to conduct a thorough review, and then issue a stream and water-crossing permit (demanded under federal law) for the Mountain Valley Pipeline (MVP). MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. A second lawsuit has now been filed in federal court to block the MVP project–this time from anti-pipeline residents from West Virginia and Virginia. This second lawsuit is even more insidious than the first. The new lawsuit, filed in U.S. District Court in Roanoke, VA (full copy below), seeks to block the Federal Energy Regulatory Commission (FERC) from doing its job by issuing a certificate to approve MVP. The suers claim FERC would be violating the U.S. Constitution by approving a private project that “takes” private land without just compensation. The suers maintain that according to the Constitution, land can only be taken for “public use” and that the pipeline is for private use, not for the public good. That’s the claim. If these virulent antis win this case, it would emasculate FERC–take away its authority to approve major interstate pipeline projects. We don’t give the case much of a chance, but hey, one never knows…
    Read More “New Lawsuit Against Mountain Valley Pipe Seeks to Emasculate FERC”

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    Antis Oppose Tiny Pipeline Thru Scrub Pines in N NJ at Hearing

    In January 2016, MDN told you about a $130 million, 30-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. The idea came about after Superstorm Sandy. How can NJNG create reliable natgas service in the region, preventing major disruptions like that which happened after Sandy? The “Southern Reliability Link” pipeline project was the result, and in January the NJ Board of Public Utilities (BPU) approved it 5-0 (see Southern NJ NatGas Pipeline Approved by State BPU). Because its natural gas and because the Sierra Club has an irrational hatred of all fossil fuels (and loads of money to burn), the nutjobs from the Sierra Club threatened to sue to stop it. Stop 30 miles of pipeline that would improve the lives of hundreds of thousands of people. They made good on their threat in April 2016 (see Radical Sierra Club Sues NJ to Stop Much-Needed NatGas Pipeline). A fair bit has happened since that time. A state appellate court told the Pinelands Commission, which oversees a protected area of pine trees stretching from northern to southern NJ, that the Commission would have to have public participation (i.e. a public hearing) before the Commission could approve the pipeline plan. So the Pinelands Commission held a hearing this past Wednesday, with a predictable result. Sierra Clubbers and other virulent anti-fossil fuel freaks turned out in droves to badmouth the project. Over some 15 miles of pipeline that would pass through a stand of scrub pines…
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    Investment Firm Opposing Trumbull Energy Center Slinks Out of Mtg

    Last week MDN told you about opposition from a neighbor in an industrial park in Lordstown (Trumbull County, OH) to a proposal by Clean Energy Future to build a second natural gas-fired electric plant next door to one already under construction now (see Investment Firm Threatens 2nd Lordstown Electric Plant, $30B @ Risk). The two Lordstown Energy Center plants will result in an estimated $60 BILLION of economic activity locally–a staggering number. Inexplicable opposition from Vienna Investments, the landlord/owner of a building that houses a car seat manufacturer in the industrial park where the plants will get built, is threatening to block the second plant, putting $30 billion in jeopardy. The Ohio Power Siting Board (OPSB) held a public hearing at the local high school on Tuesday night, to accept public comments on the second power plant. Residents from around the community turned out in force–to support the project. More than 200 people crammed the auditorium (standing room only). Of the 25 who spoke, only a few expressed mild concerns about the project–about water runoff in a local creek. Yes, there were two representatives from Vienna Investments (attorneys)–both registered to speak. According to an eye witness MDN had on location, “they retreated from the room quietly and did not speak when their names were called.” Our source speculates they elected to not talk after hearing overwhelming support from the crowd. Cowards. Hopefully the overwhelming support shown by the local community will put the issue to rest, and Ohio will approve the second project without delay…
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