Regulation

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    Lack of FERC Confirmations Now Critical – $25B & 75K Jobs at Risk

    The lack of a quorum (enough voting members) for the Federal Energy Regulatory Commission (FERC) is has gone beyond amusing and angering–it’s now critical. Early in the new Trump presidency we noted the curious behavior of liberal Democrats, who are also virulent anti-drillers, in their hammering of Trump over lack of nominating people to FERC (see Anti-Drilling Democrats Ask Pres. Trump to Fill Up FERC and Senate Democrats Send Letter to Trump Requesting New FERC Members). We said at the time it doesn’t make sense. If FERC is out of action and can’t approve new pipeline projects, that’s a good thing, for lib Dems who hate fossil fuels. So why would they want FERC back up and running? We finally figured it out. They simply wanted nominees so they could grandstand and try to stop the nominees they demanded in the first place from actually getting confirmed (see Now We Know: Lib Dems Wanted FERC Nominees for Grandstanding). After the nominees came through and were approved by the appropriate Senate Committee, Senate Democrat Minority Leader Chuck “the schmuck” Schumer pledged to hold up a final Senate vote. And since that time, he has. Energy company CEOs are now warning if FERC commissioners are not confirmed by the August break, it will jeopardize up to $25 billion in investments, and 75,000 jobs. The money is going to disappear, and along with it, many vitally important pipeline projects waiting for approval. It’s time to tell the Dems to allow the vote to proceed, or find a way around their sleazy blockade…
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    Ohio EPA Asks Ohio AG to Force Rover to “Comply” and Pay $914,000

    Sounding eerily like a Borg drone from Star Trek (“YOU WILL COMPLY, RESISTANCE IS FUTILE”), the Ohio EPA (OEPA) has asked Ohio’s Attorney General, Mike DeWine, to force Rover to pay the Ohio EPA $914,000 in so-called fines it has unilaterally levied (with no apparent authority to do so) to punish Rover for a series of accidents while constructing the pipeline. Rover has not agreed to the fines and is challenging the OEPA’s authority to levy them. So the OEPA is asking DeWine to use the full weight and force of his office to force Rover to comply. Rover has had the pedal to the metal since receiving a go-ahead from the Federal Energy Regulatory Commission (FERC) in March to begin construction to build a 711-mile natural gas pipeline from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see FERC Green Lights Rover Pipeline Construction). Perhaps by going a little too fast, Rover experienced some problems along the way, the biggest being a 2 million gallon leak of drilling mud into a swamp (i.e. “wetland”) near the Tuscarawas River in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Since that time, the OEPA and Rover have been on the outs, with the OEPA attempting to assert itself in a role that frankly, it doesn’t legally possess. The Rover project has federal, not state, oversight. This latest move by OEPA is an escalation in the ongoing disagreement over OEPA’s role, and their demands for money from Rover. It almost seems as if Craig Butler, head of the OEPA, is on a personal mission to stop this pipeline from getting built…
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    Westmoreland Zoning Challenge re H&H Wells Closer to Resolution

    Huntley & Huntley has plans to drill shale wells in Upper Burrell Township (Westmoreland County), PA. As MDN reported in June, a landowner in Upper Burrell filed an appeal against Upper Burrell’s zoning ordinance that allows drilling in rural, agricultural districts (see Westmoreland Zoning Challenge Heads to Court, Delays H&H Drilling). H&H plans to drill a well near where this woman lives, and she’s arguing such drilling will violate the state’s environmental rights clause and (more importantly), “devalue her property.” The case was supposed to go to township’s Zoning Hearing Board, but all of the (many) lawyers involved agreed to instead move it to county court, making the process faster and less expensive. The only potential problem with that is the judge may decide to hold off on a decision until two similar cases are heard and decided by the PA Supreme Court. However, the judge is not waiting. A recent media report states the judge will make a decision in the case “next month” (meaning in August) about whether or not the town can issue conditional use in agricultural-residential zoning districts…
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    Ohio Gov Kasich About to Lose Power to Stop Drilling on State Land

    Thumbing their collective noses at Ohio RINO Gov. John Kasich, in May Republican legislators in the House 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). That small change would have huge consequences. How? the Oil and Gas Commission is charged with approving potential drillers on state land. Five years ago, Kasich flip-flopped on the issue and since then has not allowed shale drilling in state-owned forests and state-owned parks–by refusing to add any new members to the Commission, which is his state constitutional duty. It is a de facto moratorium from the governor that prevents fracking on state-owned land. Enough is enough. Republicans intend to change it this year, so they added the change to the state budget bill. Kasich vetoed the measure, and the House, last week, voted to override the veto. The only thing left now is for the Senate to adopt the budget and when that happens, the fat lady will be singing–an aria for Utica Shale drilling…
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    Athens OH Rejects Anti-Fracking Ballot Measure 3rd Year in a Row

    Once again, the radicals behind the Pennsylvania-based Community Environmental Legal Defense Fund (CELDF), operating in Ohio, have suffered a humiliating defeat. This time in liberal Athens, Ohio. For three years running, the CELDF and their local useful idiots have been pedaling a so-called Community Bill of Rights ballot measure–which is nothing more than an anti-fracking law. No, there is no drilling in or under Athens, but such a law would send a loud and clear signal that Athens is closed for business when it comes to the oil and gas industry–an industry that pumps millions into the local economy (even without drilling in the area). For the third year running the CELDF drones filed a petition to include the “Bill of Rights” measure on the November ballot–and for the third year in a row, the County Board of Elections voted NOT to allow it–unanimously…
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    VA DEQ Schedules Public Hearings for MVP, Atlantic Coast Pipes

    In April MDN told you that the Virginia Dept. of Environmental Quality (DEQ) had succumbed to political pressure from the MANY lib Dems in the state that oppose benign pipeline projects, like the Atlantic Coast Pipeline (ACP) and Mountain Valley Pipeline (MVP), and changed their minds about the process they will use in issuing water quality certifications under Section 401 of the federal Clean Water Act (see Virginia DEQ Plans to Give 2 Pipeline Projects Detailed Exam). The DEQ will examine each segment of both ACP and MVP before issuing the required permits. The DEQ has scheduled five public hearings (i.e. circus freak shows) to accept comments on the projects. The hearings (scheduled below) will be held in August…
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    York, PA Elec Plant Dropping Coal for Now, Burning Marcellus Gas

    Brunner Island Power Plant

    The Brunner Island Power Plant is located in York County, PA, but straddles Lancaster County. It is a huge 1,490 megawatt coal-fired electric generating plant, and has been the target of environmentalists for years. In February, MDN told you that the new owners of the plant are investing $100 million to retrofit the plant so it can, at least part of the time, burn Marcellus Shale gas (see York County, PA Electric Plant Begins Using NatGas as Fuel). The plant was issued a draft permit by the Pennsylvania Dept. of Environmental Protection (DEP) in April allowing the plant to discharge pollutants (into the atmosphere) and heated water into the Susquehanna River. The DEP is holding a public hearing on the draft permit, on July 24 in Manchester, PA. All of which sounds rather mundane. However, in coverage of the upcoming hearing, we read that Talen Energy (the new owner) “plans to burn little or no coal until 2019 as part of a ‘site evaluation.'” Now that is interesting. If true, that means either right now, or very soon, almost all (perhaps all) of the fuel powering the plant is Marcellus Shale gas…
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    Rover Pipeline Converts Some Horizontal Drilling to Trenches Instead

    Phase I of the 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada is supposed to be completed by July 2017, while Phase II is supposed to be done by November 2017. Will Phase I be done by the end of this month? We sure wouldn’t want to take that bet, but we suppose there’s still a slim chance. While building the $3.7 billion pipeline project, Energy Transfer (or more correctly its contractors) hit some snags, including spilling 2 million gallons of non-toxic drilling mud near the Tuscarawas River (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The Federal Energy Regulatory Commission (FERC) slapped a stop work order on any horizontal directional drilling (HDD, or underground drilling) projects for Rover not already underway. A tipster later claimed diesel fuel was being added to the drilling mud and after testing a sample from the spill near the Tuscarawas, the Ohio EPA claimed to have found diesel in the mud (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). That made FERC really upset and touched off a full investigation. Meanwhile, Rover hired a new firm to oversee HDD activity and pledged with a cross-your-heart-pinky-swear to FERC that those kinds of accidents would not happen again. FERC recently allowed Rover to restart some of the work halted, which has radicals at the Sierra Club fit to be tied. However, in the “you can start again” order, we noticed that Rover has changed some (much?) of the remaining HDD projects into digging trenches instead. Obviously you can’t dig a trench across the Tuscarawas River–or a highway–or other such structures. But you can dig a trench right up to the edge of those structures. It’s our observation that a change from HDD to trenching has allowed Rover to restart stopped work in a number of locations…
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    The Man You Can “Thank” for PA’s Enviro Rights Amendment Mess

    Franklin Kury was a young lawyer and PA House of Representatives member back in the late 60s/early 70s. He was, at that time, the author of Pennsylvania’s so-called Environment Rights Amendment (Article I, Section 27 of the PA Constitution). For 40 years the ERA didn’t have much of an impact–but then activist, liberal, leftist judges got ahold of it and (ab)used it to screw with the Marcellus Shale industry in the state. Things “all changed” on June 20 when the PA Supreme Court (ab)used the ERA to tell the Dept. of Conservation and Natural Resources (DCNR) it can’t use money raised from shale drilling to help fund itself–a bass ackwards view of things if ever we’ve heard of one (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). The court based their decision, in part, on the ERA. And that has 80-year old geezer Kury doing cartwheels…
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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…
    Read More “NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?”

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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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