Regulation

Bradford County | Energy Services | Industrywide Issues | Kinder Morgan | Pennsylvania | Pipelines | Regulation | Tennessee Gas Pipeline | Tioga County (PA)

TGP’s Susquehanna West Project Gets Green Light to Begin Service
September 5, 2017September 5, 2017

In April 2015 Kinder Morgan’s Tennessee Gas Pipeline (TGP) subsidiary filed an application with the Federal Energy Regulatory Commission (FERC) to build 8.2 miles of new looping pipeline in Tioga County, PA and beef up two compressor stations in Bradford County, PA. The $142 million project is called the Susquehanna West Project. It will increase capacity along the 300 Line section of TGP, bumping it up by 145 million cubic feet per day (Mmcf/d). All of the extra capacity is spoken for by Statoil and the wells they’ve drilled in NEPA. Last September, FERC approved the project (see FERC Approves Another KM Pipeline Project in the PA Marcellus). The project was forecast to be done and dusted, going online, by Nov. 1. Usually we bring you news about such projects being delayed. In a happy reversal of that trend, last week FERC granted Kinder Morgan permission to bring the project online, NOW, a full two months ahead of schedule. Christmas came early this year…
Read More “TGP’s Susquehanna West Project Gets Green Light to Begin Service”
Electrical Generation | Energy Services | Industrywide Issues | Litigation | Millennium Pipeline | New York | Orange County | Pipelines | Regulation | Statewide NY

Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline
September 1, 2017September 1, 2017

Environmental radicalism has now fully metastasized at the New York Dept. of Environmental Conservation (DEC). The organization is nothing more than a political tool of the environmental far-left (and corrupt Gov. Cuomo), as evidenced in the DEC’s latest outrageous decision to deny federal water crossing permits to a 7.8 mile pipeline to feed an electric power generating plant in Orange County, NY–a plant currently under construction. The reason for the rejection? NOT because of any so-called harms to the environment due to crossing streams–the reason for the permits. No. But because, says the DEC, the Federal Energy Regulatory Commission (FERC), which evaluated the power plant project, didn’t take into consideration the plant’s potential contribution to mythical man-made global warming. In other words, the DEC just admitted they have denied a WATER permit based on other (political) criteria–not the criteria on which they were legally bound to decide. We predict the DEC will get crushed when this is all over and done. But the problem is, it will take years to litigate. Meanwhile, the Competitive Power Ventures (CPV) Valley Energy Center will complete its construction and go online in early 2018–powered by much-dirtier fuel oil instead of clean-burning natural gas. Congratulations to all of the antis, and the DEC, who oppose the power plant project. You’ll now have even MORE so-called global warming (and air pollution in the region) because of your lunacy…
Read More “Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP
September 1, 2017September 1, 2017

The red lines show the Atlantic Sunrise Pipeline expansion. The light blue lines are the existing Transco system.

Great news to report! Both the U.S. Army Corps of Engineers (ACE) and the Pennsylvania Dept. of Environmental Protection (DEP) have now issued federal Clean Water Act stream crossing permits for the Atlantic Sunrise Pipeline–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. In addition, portions of the project that don’t include laying new pipeline (the “brownfield” part of the project) running from Lancaster County, PA all the way to Choctaw County, Alabama go online today–reversing the mighty Transco and increasing its flow rate by 400 million cubic feet per day (MMcf/d). One permit remains to be issued–an air permit–by the PA DEP. Williams expects to begin construction on the new pipeline (“greenfield” part) later this month…
Read More “Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP”
Air Quality | Industrywide Issues | Pennsylvania | Regulation | Research | Statewide PA

PA DEP Reports: Air Emissions from Shale Industry Improved in 2015
September 1, 2017March 5, 2018

The Pennsylvania State Dept. of Environmental Protection (DEP) keeps track of emissions from various sources–including the shale industry. When drillers drill and pipeline companies pipe, the equipment used leaks some nasty stuff into the air. Frankly it’s no different for any industrial activity or business. Even homes. We all emit stuff into the air. The question is, how much do we emit and does it rise to the level of being harmful? Yesterday the DEP released air emissions numbers for the shale industry for 2015–the most recent year in which they have completed data. What does it show? According to DEP Secretary Pat McDonnell, it presents a “mixed picture.” Some of the nastiest pollutants, like nitrogen oxides (NOx), sulfur dioxide (SOx) and particulate matter (PM2.5), decreased from 2014 levels. Some things like methane (natural gas, considered a “pollutant” if it escapes into the atmosphere where it’s said to contribute to mythical global warming) are increasing. Because methane is increasing, McDonnell says more needs to be done to stem the leaking. On balance, this report looks pretty good to us–pollution from the gas industry (the things that really matter like NOx, SOx and PM2.5, are decreasing. A reason to celebrate the good work being done by the industry…
Read More “PA DEP Reports: Air Emissions from Shale Industry Improved in 2015”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018
September 1, 2017September 1, 2017

It looks like Pennsylvania’s conventional (non-shale) oil and gas drillers will get a reprieve from onerous new drilling rules–at least until next year. PA Gov. Tom Wolf has been obstinate in demanding onerous new drilling rules for the conventional, as well as unconventional (shale) drilling industry since he took office. Reworked drilling rules for both conventional and shale drillers were done and ready to go under previous Gov. Tom Corbett. Then Corbett lost to Wolf, and Wolf demanded changes to the common sense rules everyone had already agreed to (see New Draft Drilling Regulations in PA: Wastewater Impoundments Out). Wolf’s changes for conventional drillers threatened to run PA’s traditional, small conventional drillers out of business by applying the same regulations to them that will apply to shale drillers. The Pennsylvania Independent Oil & Gas Association (PIOGA) represents many of those small conventional drillers and vigorously fought back (see PIOGA Turns Up the Heat on Wolf/Quigley Over TAB/Chapter 78 and PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). In the end, Wolf’s own Democrat Party legislators in the House and Senate abandoned him and the writing was on the wall: The entire package of drilling rules, for both conventional (Chapter 78) and shale (Chapter 78a) was headed for defeat. The legislature was about to repeal both sets of newly-minted DEP rules–so in 2016 Wolf pivoted and decided to accept half a loaf–passage of the shale rules, Chapter 78a (see Wolf Really Didn’t Wise Up, He Just Took Half a Loaf re Drilling Regs). Since that time, we’ve not heard much about Chapter 78, which applies to conventional drillers. In the August 19 Pennsylvania Bulletin, the DEP published a short notice to say the agency will now wait until late 2018 before attempting changes to Chapter 78 for conventional drillers…
Read More “PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018”
Air Quality | Beaver County | Energy Companies | Ethane | Industrywide Issues | Litigation | Pennsylvania | Processing Plants | Regulation | Shell

Did Shell Pull a Fast One on Big Green Groups re Air Permit?
September 1, 2017September 1, 2017

Earlier this week MDN reported that Shell had settled an action brought by Big Green groups against an air permit issued for their now under construction ethane cracker plant in Beaver County, PA (see Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit). In 2015, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories) filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board, a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups wanted fence line monitoring. So Shell “caved” and agreed. But in reading an account of the agreement, it dawned on us, reading between the lines, that perhaps this is what Shell planned all along! That is, Shell already planned to do fence line monitoring. The settlement Shell signed earlier this week ensures the Big Green groups can’t bring any further actions with regard to the air permit. We don’t know for sure, but it seems to us like maybe Shell was playing a long game of chess, and knew this kind of action would come, and held back the fenceline monitoring piece until the right time to play it–trading the fence line monitoring pawn for inoculation against future Big Green litigation. Smart…
Read More “Did Shell Pull a Fast One on Big Green Groups re Air Permit?”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Statewide PA

Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0
August 31, 2017August 31, 2017

Yesterday MDN brought you the news that Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011 (see Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well). In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). The DEP said a Range well, drilled in 2011 in Lycoming County, PA, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled said methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board. In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We thought that was THE END. But it wasn’t. On Monday of this week, both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” We now have a copy of the settlement itself–and it shows the DEP will not extra one penny from Range over what they previously said should cost $8.9 million. Interesting. Antis like THE Delaware Riverkeeper, Maya van Rossum, are “dumbfounded” at the settlement. Below is a copy of the settlement paperwork and select anti reaction to it…
Read More “Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0”
Energy Services | Industrywide Issues | Kinder Morgan | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Tennessee Gas Pipeline

Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline
August 31, 2017August 31, 2017

Last week MDN brought you the news that THE Delaware Riverkeeper had lost a federal lawsuit against Kinder Morgan’s Orion Project to expand the Tennessee Gas Pipeline in northeast Pennsylvania (see Dela. Riverkeeper Loses Fed. Court Case Against NEPA Pipeline). Riverkeeper argued that both the U.S. Army Corps of Engineers and the PA State Dept. of Environmental Protection (DEP) should not have issued Clean Water Act stream crossing permits for the project. Last week a federal court ruled that the U.S. Army Corps was well within its right to do so. This week the other shoe dropped. The U.S. Court of Appeals for the Third District ruled that the DEP was also within its right to issue a permit. In this case, two strikes and THE Delaware Riverkeeper is out. The project, which received full Federal Energy Regulatory Commission approval in February of this year, remains on track to be built/online in June 2018…
Read More “Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline”
Accidents | Anti-Drilling/Fossil Fuel | Dauphin County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill
August 31, 2017August 31, 2017

Will anti-fossil fuel Big Green groups succeed in turning a molehill into a mountain? That’s what they are attempting to do with the latest tiny spill (50 gallons) of drilling mud by Sunoco Logistics Partners in underground drilling work for the Mariner East 2 pipeline project in Dauphin County, PA. Over the past several months, Sunoco has experienced some “inadvertent returns” (i.e. leaks) of drilling mud at various locations. One of those was in Chester County, where a serious leak temporarily fouled a water aquifer and clouded drinking water for 15 local households (see Sunoco Stops ME2 Drilling in Chester County Following Water Issue). Sunoco took extraordinary steps to make it right, going so far as to pay to run municipal water to affected homeowners. Earlier this month Sunoco struck a deal with several Big Green groups to provide stricter regulation for ME2’s underground drilling (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Part of the deal says if Sunoco experiences two leaks of drilling mud at the same location, they must shut down drilling in that location and wait for the state Dept. of Environmental Protection to further review drilling plans before they can restart. On August 24th there was a 50-gallon drilling mud spill into the Susquehanna River in Dauphin County related to ME2. (A quick reminder: drilling mud, or “bentonite,” is non-toxic–the same stuff found in toothpaste and kitty litter). Thing is, there was another spill of 495 gallons at the same location a week earlier. Antis say Sunoco must now shut down drilling in that spot until further notice. Sunoco is saying that particular location was not part of the signed agreement…
Read More “Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill”
Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Range Resources Corp | Regulation

Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well
August 30, 2017August 30, 2017

Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011. In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Range’s enviro crime? Methane migration from a well in Lycoming County, PA. The DEP says the Range well, drilled in 2011, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled say methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board (see PA DEP’s $8.9M Methane Migration Fine Appealed by Range Resources). In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We assumed that was the end of the matter. But alas, no. We now, finally, have an end. Both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” The paperwork (copy below) does not say what the terms of the settlement are. Both Range and the DEP are being mum about the terms…
Read More “Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1
August 29, 2017August 29, 2017

Atlantic Sunrise Pipeline – click for larger version

An important piece of Williams’ $3 billion Atlantic Sunrise Pipeline project, meant to flow Marcellus gas to new markets in the Mid-Atlantic and southeast, is about to go online in the next few days. You read that right. Most of the coverage here on MDN with respect to the Atlantic Sunrise project has been about the most controversial part of the project–183 miles of new “greenfield” (brand new) pipeline construction that will happen in Pennsylvania–a project referred to as the Central Penn Line. Small groups of antis in places like Lebanon and Lancaster counties have vigorously opposed the new pipeline portion of the project in their communities. However, upgrades to several compressor stations and fixes to the existing Transco pipeline as it runs through states like Maryland and Virginia are also needed in order to make Transco bi-directional–able to continue flowing gas from the Gulf to the northeast, but now, also able to reverse and flow gas from the Marcellus/Utica in the other direction. Although the greenfield portion of the project has not yet begun (should in the next few weeks), the “brownfield” or tweaks to the existing pipeline/compressor stations has been underway, since February, and is now ready. The Federal Energy Regulatory Commission (FERC) has just granted Williams permission to bring the new tweaks online, which will allow Transco to reverse and flow an extra 400 million cubic feet per day (MMcf/d) of natural gas from Lancaster County, PA all the way to Choctaw County, Alabama…
Read More “Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1”
Industrywide Issues | Ohio | Regulation | Statewide OH

OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands
August 29, 2017August 29, 2017

Ohio Gov. John Kasich (RINO) promised, five years ago, to allow shale drilling on state-owned forests and parks. He promptly then reneged on his promise. The way Kasich blocked drilling was to refuse adding new members to the Oil and Gas Commission, charged with approving potential drillers on state land. Kasich created a de facto moratorium that prevents fracking on state-owned land. In May of this year, Republican legislators, tired of Kasich’s recalcitrance, added a “little-noticed provision” in the state budget deal that will give the legislature, and not the governor, the power to select members of the Ohio Oil and Gas Commission (see Ohio Legislators Push to Allow Fracking in State Parks, Forests). Kasich vetoed the measure but legislators overrode the veto. As we reported in July, Kasich was on the verge of losing his power to block state land drilling (see Ohio Gov Kasich About to Lose Power to Stop Drilling on State Land). Faced with humiliating defeat, Kasich decided to act and is now reportedly “working hard” to get the appointments made…
Read More “OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands”
Air Quality | Beaver County | Energy Companies | Ethane | Industrywide Issues | Litigation | Pennsylvania | Processing Plants | Regulation | Shell

Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit
August 29, 2017August 29, 2017

Exactly two years ago, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories)–filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca, PA (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board–a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups want fenceline monitoring and restrictions on flaring. Shell caved and gave them most of what they want, signing a settlement agreement last Friday (copy below). Shell did win one important concession: the litigious Big Green groups can’t sue Shell over any of their wild claims in the original filing…
Read More “Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Raising Shale Well Permit Fee Later This Year
August 29, 2017August 29, 2017

The Pennsylvania Dept. of Environmental Protection has put drillers (and everyone) on notice that it will bump up the fee to file for a permit to drill a Marcellus Shale well. Prior to 2013, the permit fee for a new Marcellus well was $3,200. In 2013 the DEP bumped it up by 56%, to $5,000 (see Higher Marcellus Permit Fees Coming for PA Drillers). The DEP says statutorily it must review the fee “every three years” and now is the time (past time, really). The DEP is signaling “the need for a fee increase.” How much? The DEP is being coy about what kind of a jump they plan this time…
Read More “PA DEP Raising Shale Well Permit Fee Later This Year”
Empire Pipeline | Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Regulation | Statewide NY

NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline
August 29, 2017August 31, 2017

There’s been an interesting twist in the saga of National Fuel Gas Company’s (NFG) Northern Access Pipeline project. The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. The Federal Energy Regulatory Commission (FERC) granted final approval for the project in February of this year (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). Shortly after, NFG filed a request with FERC (in March) to bypass the New York Cuomo-corrupted Dept. of Environmental Conservation (DEC) because the DEC was dragging its feet on a decision to grant stream crossing permits for the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). Needless to say, the DEC didn’t like it. In April of this year, the DEC ruled against granting the project stream crossing permits, effectively killing it, at least for now (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). After DEC’s denial, NFG sued the DEC in the Second Circuit of the U.S. Court of Appeals to overturn their denial (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). OK, now is where it gets interesting. A similar court case was filed by the Constitution Pipeline against the DEC with the 2nd Circuit. The court ruled against the Constitution and for the DEC on August 18 (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). We’re sure NFG can see the writing on the wall for their lawsuit. So NFG has gone back to FERC and their request filed back in March that FERC bypass the DEC and go ahead and grant permission anyway. NFG made a motion for an “expedited request” by FERC last week. What if FERC agrees and overrules the DEC? And what if they don’t?…
Read More “NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline”
Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Regulation | Statewide OH

New FERC Quorum Votes Final Approval for NEXUS Pipeline
August 28, 2017August 28, 2017

Two new members added to the Federal Energy Regulatory Commission by President Trump (Neil Chatterjee and Rob Powelson), added to the Obama-appointed member (Cheryl LaFleur) have not wasted any time in authorizing their first major pipeline project as a group. Last week the trio voted to approve the first major pipeline project since a quorum has been reestablished–NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. On August 4th, NEXUS, which is a jointly owned project between DTE Energy and Spectra Energy (now part of Enbridge), sent a letter to the new FERC quorum urging fast action (see NEXUS Pipeline to FERC: Please Approve Project – NOW). Perhaps the letter did the trick. On Friday, August 25th, the three issued a certificate of public convenience and necessity (full copy below) allowing the project to move forward. Because of the delay when FERC was without a quorum, NEXUS says the pipeline will now evaluate and supply a new construction schedule, but they do plan to have the pipeline up and running sometime in 2018…
Read More “New FERC Quorum Votes Final Approval for NEXUS Pipeline”