Regulation

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    France Commits Energy Suicide – No New Oil & Gas Exploration, Ever

    Click chart for a readable version – France’s energy mix (as of 2013)

    MDN editor Jim Willis had the pleasure of visiting France in 2006. It is a breathtakingly beautiful country. Jim found the French people to be personable and easy to deal with (contrary to the popular myth they are arrogant and hate Americans). But hey, that was just one guy’s experience. Maybe you have had a different experience? We’ve written about France’s on again, off again frack ban over the years (see our stories about France here). You won’t have to worry about whether or not France will ever allow fracking. Beginning this fall, the country will stop issuing ANY/ALL permits to drill for ANY/ALL oil and gas–conventional, shale, doesn’t matter. France says it will “transition” to “environmentally-friendly energy.” You know, like solar and wind–even though discarded solar panels are about the same thing as disposing of nuclear waste (an ecological disaster). But appearances are everything for French President Emmanuel Macron and his certifiably-insane government. France currently (as of 2013) gets 44.5% of its energy from oil and gas, the single largest block of energy powering the country. Nuclear is second, at 41%. Wind and solar? Together they make up less than 1% of France’s energy supply! Why is France’s energy suicide an MDN story, other than Jim’s walk down memory lane? Because it’s easy to predict that France will not be able to operate on 100% renewable energy. Not now, not in our lifetime. It is a fact. If France doesn’t allow oil and natural gas exploration INSIDE their country, they will need to import oil and gas from OTHER countries. Enter the Marcellus/Utica with plenty of gas via LNG exports to sell. This is a tip to producers reading MDN to begin negotiating now to sell your gas to France. They’re going to need it…
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    Liberal DC Court Tells EPA It MUST Adopt Obama Methane Rules

    The federal Environmental Protection Agency (EPA) wisely move to begin the process of rolling back Obama-era regulations on methane, designed to regulate the oil and gas industry, last month (see Beginning of the End: EPA Issues 90-Day Stay for Methane Rule). Big Green groups with deep pockets sued a few days later, claiming the agency that instituted the rules in the first place (the EPA) shouldn’t be able to roll back the rules they themselves made up. Egregious, over-reaching rules. A liberal federal court in DC somewhat agreed, telling the EPA they have to justify themselves (see Liberal DC Court Asks EPA to Respond to Lawsuit by Radical Enviros). Now, the liberal DC court has decided the EPA can’t un-decide what it previously decided, even though it clearly has the right and power to do so. On Monday, the U.S. Kangaroo Court of Appeals for the District of Columbia Circuit ordered to EPA to move forward with the Obama-era methane rules…
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    Big Chemical Continues to Lobby Trump Admin to Limit LNG Exports

    Although we understand self-interest and wanting to protect one’s profit margin, we continue to be distressed that some of the biggest chemical companies in the world (meaning in the U.S.) are still actively trying to block approvals for more LNG export facilities. Why? They want the natural gas they buy (in very large quantities) to be as cheap as possible. In April, Big Chemical–companies like Dow Corning, BASF, Eastman Chemical and others–via their trade association Industrial Energy Consumers of America (IECA) launched an effort to try and persuade Energy Secretary Rick Perry and the Trump Administration to create barriers to exports of natural gas, ’cause you know, it’s “America First” now baby, and we want that gas all to ourselves (see Big Chemical Selfishly Wants to Block NatGas Exports). Even though last week was “Energy Week” at the White House, and Trump announced even more LNG exports on the way (to South Korea), the IECA is still keeping up the pressure. They sent another letter warning that more LNG exports will put Trump’s agenda of more American jobs in danger…
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    Enbridge Withdraws $3B Access Northeast Pipeline Application

    Last December Spectra Energy pushed the pause button on their Access Northeast Pipeline project, a roughly $3 billion project in New England to connect four existing pipeline systems (with enhancements): Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast (see Spectra Energy Puts Access Northeast Pipe to New England on Hold). Spectra’s original strategy was to bring natural gas to New England by cutting deals with electric companies who need the gas to produce cheaper electricity at their natgas-fired power generation plants. However, the green environmental Nazis came out in force against the plan, (sadly) aided and abetted by Spectra’s competitors, and those plans are now in ruins with three states blocking any such plans. So Spectra changed strategies, targeting local natural gas distribution companies (LDCs) as potential customers (see Spectra Energy Changes Strategy re New England Pipeline). Spectra needs customers to sign on the dotted line–committing to long-term contracts–before they can raise the funding and build the project, so they pushed the pause button last December. Since that time, Spectra completed selling itself to Enbridge (see Spectra Energy is No More – $28B Merger with Enbridge Complete). So just to confuse things, the Access Northeast project is now an Enbridge project. Yesterday Enbridge sent a letter to the Federal Energy Regulatory Commission, the agency that oversees such projects, to officially withdraw the application. But the project is NOT dead. Enbridge says they will be back to file again–once the New England states get their energy policy crap together…
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    Trump Taps Former Wind Energy Lobbyist for FERC Post

    Earlier this month MDN reported that extreme partisan Sen. Chuck Schumer had recommended to the White House that Richard Glick, a current a Senate staffer (i.e. swamp dweller) and former lobbyist for the wind industry, should succeed Democrat Colette Honorable as the second Democrat commissioner on the Federal Energy Regulatory Commission (see Dems Pick Wind Lobbyist for FERC Appointment). Today is Honorable’s last day on the job. At the time, Glick’s nomination was still just a rumor. The White House refused to comment so as to not “get ahead of an official announcement.” We advised Team Trump to give it a pass. They didn’t listen. Yesterday it became official–Trump will nominate Glick for the post. Which is (in our opinion) sad…
    Read More “Trump Taps Former Wind Energy Lobbyist for FERC Post”

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    NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?

    The New Jersey Dept. of Environmental Protection (NJDEP) sent PennEast Pipeline a letter yesterday saying they have closed the application for water-crossing permits for the project–without granting those permits. In April the NJDEP temporarily rejected the permits, giving PennEast another 60 days to respond to requests for more detailed information about the project (see NJ DEP Temporarily Rejects PennEast Request for Wetland Permits). The NJDEP says PennEast isn’t making sufficient progress and so they are simply closing the book on it. Which may sound like the end of the line for PennEast. That is, if you read statements by radical environmentalists like Jeff Tittel from the Sierra Club. Except it’s not game over. PennEast says, in essence, “No problem. Thanks anyway. We’ll be back and refile the application shortly.” Which they can do. Below is a copy of the letter from the NJDEP, some select (biased) coverage from anti-fossil fuel mainstream media, and a full statement from PennEast, to set the record straight…
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    ODNR Approves Plans for 2 New Trumbull County Injection Wells

    Some good news for Utica (and Marcellus) drillers: The Ohio Dept. of Natural Resources (ODNR) has just approved permits for two new frack wastewater injection wells in Trumbull County, OH. Which doesn’t make the local anti-fracking nutters with FrackFree America happy. One of them calls the approvals “immoral.” She’s calling on the company building the wells, Highland Field Resources, to “abandon its plans.” (chuckle) The wells will be built in the town of Brookfield. ODNR has attached a myriad of conditions and required testing before the wells can go live. Here’s the immoral details…
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    Rover (Again) Asks FERC for Permission to Finish Horizontal Drilling

    Yesterday Energy Transfer Partners, the builder of the Rover Pipeline, once again asked the Federal Energy Regulatory Commission (FERC) if they could pretty-please-with-a-cherry-on-top resume horizontal directional drilling (HDD) in a couple of key locations in Ohio, so they can finish phase one of the pipeline somewhere close to on-time. Rover is a $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. It is a critical piece of sorely needed infrastructure for the Marcellus/Utica industry. As soon as ET received approval for the project in February, they began building it. But they hit a few snags along the way, including an “inadvertent return” (i.e. leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see FERC Slaps Rover Pipeline with Stop Drilling Order). A few weeks later ET asked FERC if they could begin drilling again in a few key locations (see Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill). But so far, nyet. Yesterday ET asked again, “respectfully,” to restart HDD drilling…
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    FERC Gives Dominion VA/MD/DC Pipeline Favorable Enviro Assessment

    In October 2016, Dominion announced a new pipeline project called Eastern Market Access Project (see Dominion Announces $145M Project to Expand Gas Supply to DC & MD). The project will beef up two compressor stations in Virginia, build a new compressor station in Maryland, and add a couple of pipeline taps near Washington, D.C. The purpose of the $145 million project is to deliver more gas to Washington Gas (and its customers), and to deliver gas to a new gas-fired electric power plant being built in Maryland. A Dominion spokesman confirmed for MDN that the gas will come from either the Marcellus or Utica plays. Some good news to report: the Federal Energy Regulatory Commission (FERC) has issued a favorable environmental assessment (EA) for the project…
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    Pittsburgh Suburb Moves to Regulate Seismic Testing by H&H

    One of the first steps before a company decides to drill for shale gas (or oil), is to conduct a seismic survey–bouncing sound waves through the rock layers a mile or more down–to “see” what the geology looks like. It helps drillers target locations with the best possibility of success, which is a good thing for everyone (no unnecessary “misses” when drilling a well). One of objectives of the original Act 13 law passed in PA in 2012 was to provide uniform zoning ordinances for the oil and gas industry, so drillers don’t have to work with a crazy quilt patchwork of zoning requirements in every new town in which they drill. That failed when seven selfish towns filed a lawsuit that ultimately went to the PA Supreme Court, where the towns won the right to pass their own zoning regulations for oil and gas drilling (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). So now drillers have to face different standards/restrictions/rules in every town where they drill. Thank you seven selfish towns! Huntley and Huntley is one of those drillers. In May MDN told you that H&H is conducting seismic surveys in Westmoreland County (see Huntley & Huntley Targets New Drilling in Westmoreland County, PA). H&H now wants to conduct seismic surveys in neighboring Allegheny County, in the Borough of Oakmont (suburb close to Pittsburgh, northeast side of the city). Because of H&H’s interest, Oakmont has (surprise!) proposed a new seismic survey ordinance. We have a copy of the 9-page ordinance below. Oakmont will hold a special meeting on July 3rd to discuss it…
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    Free at Last! EPA, US Army Corps Rescind Obama WOTUS Rule

    In May 2015 the Obama rogue Environmental Protection Agency (EPA) along with the Obama U.S. Army Corps of Engineers (USACE) released a finalized rule clarifying what “Waters of the United States” (WOTUS) means vis a vis what can be regulated under the federal Clean Water Act (see EPA Power Grab: Redefines Waters of the U.S. to Include Everything). Essentially the rule change redefined everything down to mud puddles (no, we’re not exaggerating) as being subject to the federal Clean Water Act. It was yet another attempt to bring oil and gas regulation under the purview of the federal government, a violation of the U.S. Constitution. In October 2015, a federal judge stopped WOTUS from going into effect while it’s litigated (see Sixth Circuit Court Stops EPA from Implementing WOTUS Anywhere). Eventually 31 states along with other entities filed briefs with the 6th U.S. Circuit Court of Appeals opposing the rule (see 31 States Ask Court to Dump Obama WOTUS Rule as Unconstitutional). A number of Senators and Congressmen joined the lawsuit (see 21 Senators, 67 Representatives Join Case Against EPA WOTUS Rule). You can see just how unpopular the rule was/is. So it is with enormous pleasure and pride we bring you the news that the Trump EPA and Army Corps of Engineers has reversed course, filing a new rule to rescind the Obama WOTUS rule…
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    Shell Gets Important Wastewater Permit for Beaver Cracker Plant

    It was more than six months in the making, but finally the Pennsylvania Dept. of Environmental Protection has granted Shell a permit that allows the facility to discharge wastewater and storm water into the Ohio River. Which may sound like Shell just got a permit to pollute the Ohio River–but that’s not what is happening. Shell is building their mighty $6 billion ethane cracker on a site formerly used as a zinc smelter. The old Horsehead Corp. plant held a permit that allowed the plant to discharge wastewater with some total dissolved solids (TDS) into the Ohio. When Shell bought the site, they also inherited the Horsehead permit for wastewater discharge. Shell filed a plan back in December with the PA DEP to modify that permit for the forthcoming cracker plant (see Shell Cracker Wastewater Discharge Becomes an Issue). So-called environmentalists jumped up and down like a rattlesnake had entered the room–but their showboating had no effect. After six months of review, the DEP has determined Shell’s wastewater request is OK by them, and will not unduly harm the environment. So last Friday, the DEP issued a National Pollution Discharge Elimination System (NPDES) permit amendment for the cracker plant. This is an important step, without which construction on the plant would not begin…
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    DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay

    An Appeals Court decision issued Friday has (in our opinion) HUGE ramifications for New York State and the Dept. of Environmental Conservation (DEC) that has been corrupted by political influence from Gov. Andrew Cuomo. It also has ramifications in other states with overactive environmental agencies too. It is hard for us to overstate how important we think this decision is. The NY DEC has been corrupted and politicized by one of the most corrupt governors New York has ever had: Andrew Cuomo. The Cuomo DEC has unilaterally decided not to issue 401 water crossing permits for several federally-authorized pipeline projects, including Williams’ Constitution Pipeline, NFG’s Northern Access Pipeline, and a teeny tiny 9-mile pipeline Millennium wants to build from their main pipeline to an under-construction natgas-fired electric plant in Orange County, NY, called the Valley Lateral Project. Millennium took the bull by the horns early on, when it was apparent the DEC was following the same pattern of delay and then deny, suing the DEC (see Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay). On Friday, the U.S. Court of Appeals for the District of Columbia Circuit dismissed the lawsuit by Millennium, which at first blush may seem like a blow. But it was the reasoning and opinion of the judges in dismissing the case that may change everything in New York. The judges said there is no case because if, as Millennium says, the DEC is denying the water permits, FERC itself has the power to jump back in and simply override NY DEC and issue the permits. This is a BOMBSHELL decision. That is, it’s a bombshell if FERC (with a soon-to-be-in-place quorum) exercises its constitutional authority…
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    FERC Issues Positive Final EIS for Mountain Valley Pipeline

    As predicted, on Friday the Federal Energy Regulatory Commission (FERC) issued a favorable final Environmental Impact Statement (EIS) for the Mountain Valley Pipeline (MVP) is a $3.5 billion, 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. In the EIS (full copy below), FERC says: “We determined that construction and operation of the projects would result in limited adverse environmental impacts, with the exception of impacts on forest….We conclude that approval of the projects would result in some adverse environmental impacts, but the majority of these impacts would be reduced to less-than-significant levels.” While a favorable EIS all but assures the project will get approved, it is not a final approval. A final approval will come after a full quorum of voting commissioners is in place–currently there are only two of five members sitting who can vote. Anti groups did their best to spin and smear the MVP project–all to no avail. All of their machinations, even with help from local anti reporters, amounts to nothing. This project is happening…
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    VA Sec Natural Resources Tells Dominion to Back Off re AC Pipeline

    A lot of communication (letters, phone calls, meetings) fly back and forth between a midstream (pipeline) company and regulatory agencies when an application is filed for a project. Particularly a project like the Dominion’s Atlantic Coast Pipeline, $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Companies like Dominion send letters, make phone calls and meet with federal and state regulators, attempting to anticipate and answer questions and concerns. It’s a natural part of the process. So we found it interesting, indeed strange, that the Virginia Secretary of Natural Resources, Molly Ward, sent a letter to Dominion back in April (just now coming to light) in which she tells Dominion to back off and that people in the agencies that work for her “will not base their decisions on requests or suggestions from an applicant.” The Roanoke Times, “reporting” on the letter, opens their article with this sentence: “Attempts by Dominion Energy to sway regulators in the Atlantic Coast Pipeline permitting process prompted a top official under Gov. Terry McAuliffe to notify the utility that state agencies would not heed those efforts.” So now, when a company attempts to provide information, perhaps anticipating issues and concerns for regulators, and reaches out to contact them proactively, that’s called an attempt at “swaying” and is somehow nefarious and underhanded. Should Dominion contact regulators to ask them to NOT approve the project? Ridiculous! Of course Dominion is going to try and convince regulators that the project is worthy/sound/needed/safe/etc. That’s their job! Why would Ward not want her people to hear directly from Dominion? Her people hear plenty from the other side, anti-fossil fuel nutters opposed to the project…
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    True Colors of Politicized NY DEC Evident on Agency Website

    The Independent Oil & Gas Association of New York (IOGANY), sent an email last Friday to members alerting them to the profound bias evident for all to see on the state Dept. of Environmental Conservation (DEC) website with respect to renewable vs. fossil fuel energy. It seems the DEC has been politicized by Gov. Andrew Cuomo and now reflects his energy bias in promoting so-called renewable energy sources over fossil fuel energy sources. As IOGANY points out in their email (and as we’ve stated many times), nobody is against renewable sources of energy. They (and we) are, however, against the state choosing sides and promoting some sources over others, when it doesn’t make sense environmentally nor economically. IOGANY’s observations are compelling–showing just how biased agencies like the DEC have become…
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