Regulation

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    PA ‘Environmental Justice’ Session Brings Out Handful of Activists

    Last December the Pennsylvania Dept. of Environmental Protection (DEP) said it would go on a “listening tour” in early 2017, to focus on so-called environmental justice–whatever that is (see PA DEP to Conduct ‘Listening Tour’ for ‘Environmental Justice’). The DEP finally set up a schedule for its listening tour, which began yesterday in Greene County (see PA DEP Conducting “Listening Tour” for “Environmental Justice”). Our take: “environmental justice” means asking poor people if they’ve been abused by the oil and gas industry in any way–and if they have a beef, the DEP will “do” something about it. Yesterday’s first session in the tour was interesting for several reasons. For one, just a handful of people turned out–a maximum of 30 in the crowd. For another, the po’ folk didn’t bother coming. It seems only radical activists bothered to turn up, claiming to represent the abused, repeating the same tired, old lies they always repeat…
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    FERC Wants More Info, Route Tweaks from Atlantic Coast Pipeline

    One of the oft-repeated lies we hear from anti-fossil fuelers against the Federal Energy Regulatory Commission (FERC) is that the agency “never” rejects a pipeline proposal, and “hasn’t in 20 years.” The conclusion, according to liemeisters like THE Delaware Riverkeeper, is that FERC is simply a “rubber stamp” for “big oil and gas”–not to be trusted and (preferably) shut down. That’s the kindergartenish meme they pedal to unthinking, left-leaning enviro lapdogs (their followers), who believe them. But you and I know the truth. This is that truth: FERC picks over pipeline projects with a fine-tooth comb. When FERC finds something they don’t like, they respond back to the project builder with “suggestions” about route changes, construction guidelines, request for more information, etc. If the project builder decides to disregard FERC’s “suggestions,” the builder runs the risk of having the project rejected. So they change it. It is an ongoing negotiation. What if FERC demands something really wacky? The project builder will push back, but in the end, what FERC wants, FERC gets. Period. And so it is with Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Atlantic Coast is winding its way through the FERC regulatory process. Last week was the deadline for filing comments on FERC’s draft environmental impact statement (EIS) for the project. On Tuesday, FERC sent Dominion a 36-page letter (full copy below) regarding the Atlantic Coast Pipeline, identifying 100 areas of concern with the “suggestion” that minor route changes and workspace reductions would button up most issues. You can bet your bottom dollar Atlantic Coast Pipeline will bend over backwards to make those adjustments. This is how adults handle things…
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    Texas Gas Asks FERC for Extra 2 Yrs on Northern Supply Access Proj

    Click for larger version

    Texas Gas Transmission (TGT) is a big pipeline network owned and operated by Boardwalk Pipeline Partners. Originally built from the Louisiana Gulf Coast to the upper Midwest, the purpose of the pipeline system was to supply Illinois, Indiana and Ohio with natural gas. Then the Marcellus/Utica Shale happened and TGT needed to change strategies. Through a series of projects, TGT made the pipeline system bidirectional, so it could flow gas from the Marcellus/Utica to points south, going as far as the Gulf Coast. One of the primary projects to accomplish that objective is called the Northern Access Supply Project, which first landed on our radar in Sept. 2015 (see Northern Supply Access Proj. Expands OH to Gulf Pipeline Capacity). Northern Access Supply was authorized by the Federal Energy Regulatory Commission (FERC) in March 2016 to “construct a new compressor station in Hamilton County, Ohio and make modifications at eight existing compressor stations in, Indiana, Kentucky, Tennessee, Mississippi, and Louisiana in order to enable Texas Gas to provide an additional 384,000 million British thermal units (“MMBtu”) per day of firm transportation service primarily in a north-to-south direction on Texas Gas’s system while maintaining Texas Gas’s current ability to flow gas south-to-north.” FERC gave TGT two years to get the work done (deadline March 2018). While some of the work has been done, not all of it has–and now TGT is asking for more time–an additional two years (to March 2020) to complete the project. Why? Because one of shippers contracted to use 100,000 MMBtus of that capacity (or 26% of the increased capacity) has filed for bankruptcy and can’t fulfill its commitment. So TGT wants to delay the final work until it has more customers for the other 100,000 MMBtus of capacity…
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    PA DEP Fines Butler County Gathering Pipeline $185K for Erosion

    MDN spotted an announcement issue by the Pennsylvania Dept. of Environmental Protection (DEP) stating they’ve assessed a $185,000 fine on the Constellation Pipeline and its builder EM Energy (i.e. EdgeMarc) for a series of violations when building the pipeline in 2014-2015. That sent us digging. We don’t recall a Constellation Pipeline (and we’ve been writing MDN since 2009). What is the pipeline? Where, in PA, is it located? What is its purpose? We think we found most of the answers…
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    Voice Support for Atlantic Sunrise @ PA DEP Event Apr 19

    For months MDN has encouraged its readers to get behind and support Williams’ Atlantic Sunrise Pipeline project–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 February the Federal Energy Regulatory Commission (FERC) gave its final seal of approval for the project (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). But such approvals are never the last word in the complex world of building pipelines. In addition to FERC’s approval, Williams still needs permits from the PA Department of Environmental Protection (DEP) and the U.S. Army Corps of Engineers. The DEP moves like a glacier, but finally they are holding their first public hearing on the project. The hearing will deal specifically and only with a compressor station in Lycoming County, PA. The hearing is scheduled for April 19 (next Wednesday) in Jersey Shore, PA. You KNOW the antis will launch an all-out assault at the meeting. It is important for those of us who support Atlantic Sunrise to also attend and offer words of support for the compressor station, and the project. Williams has a special form (click here) where you can register your intent to attend…
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    SC Issues Water Permits for Transco to Charleston Pipeline Project

    Transco to Charleston Project – click for larger version

    In March 2016, Dominion filed an official application with the Federal Energy Regulatory Commission (FERC) for a 55-mile pipeline project called the Transco to Charleston Project (see Dominion Files Application to Move Marcellus Gas to Charleston, SC). As the name implies, it will be a short pipeline to connect the Transco pipeline, which is in the process of reversing flows to bring Marcellus and Utica Shale gas south. This new pipeline will grab Transco’s Marcellus/Utica gas and send it to the Charleston, SC area. In February the Federal Energy Regulatory Commission (FERC) approved the project (see FERC Approves SC Pipeline to Flow Marcellus Gas to Charleston). So in March, a group of radical anti-fossil fuelers filed a lawsuit to try and stop the project (see SC Antis File FERC Challenge to Stop Marcellus Pipe to Charleston). Hey, whatever floats your boat. Meanwhile, yesterday the State of South Carolina granted the project its stamp of approval by approving stream crossing permits. Once again, the antis have their knickers in a twist…
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    Battle Lines Drawn in PA to Prevent Nuke Energy Special Treatment

    As MDN pointed out in a post on Monday, the uncompetitive nuclear power generating industry is trying to protect its business by asking for special protections and a “bailout” from ratepayers in state after state (see Expensive Nuke Plants in OH, PA Launch Attack on Cheaper NatGas). Such a strategy has worked in corrupt states like New York and Illinois. But now the nuke industry is turning its focus on Ohio and Pennsylvania. The nuclear industry is asking state legislatures to vote for higher electric rates in order to pass the money along to companies running the nuke plants. Corporate welfare. Picking energy winners and losers by fiat. It would result in rate hikes on people who would otherwise be experiencing lower rates thanks to the use of cheaper sources–like natural gas. Lest you think the natural gas industry (and solar and wind) are taking this battle lying down, think again. The battle lines are drawn. Some 17 organizations and companies, including the Marcellus Shale Coalition, the Pennsylvania Manufacturers’ Association, and the Pennsylvania Chemical Industry Council, have formed a confederation called “Citizens Against Nuclear Bailouts” to fight the effort by the nukes for special, expensive, preferential treatment…
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    The Folly of Betting the Company on Fugitive Methane Regulations

    Excuse us if we don’t shed any tears for companies dumb enough to found, base or refocus their entire strategy on the shifting sands foundation of ever-changing federal regulations–like the idiotic, hyper-restrictive regulations that every last molecule of methane must be sniffed out and stopped before it “escapes” (like a fugitive) into the atmosphere. Basing your business model on government regulations may work for a while, under tyrannical regimes that of B.H. Obama, but it doesn’t work under free market, sensible administrations like the Trump Administration. You bet an entire company’s future on a federal policy (fugitive methane) that was instigated by an executive branch agency, and then you wake up after election day to find out the policy has been changed. Whoops…
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    Pipeline Industry Walks Tightrope re Made in America Pipes

    Soon after President Trump was inaugurated, some of the first Executive Orders he signed dealt with the Dakota Access Pipeline (now completed, thank God), and the Keystone XL Pipeline. Trump also signed a “Presidential Memorandum”–similar to, but not the same as, an Executive Order. On Jan. 24, President Trump signed the “Presidential Memorandum Regarding Construction of American Pipelines,” which instructs the Dept. of Commerce to ensure the pipelines used for new projects, and for major repairs, are Made in America–from the smelting stage through the final fabrication stage. That order has had the midstream industry squirming, quite frankly. Why? Because so much of the pipelines we now use are foreign made. While the goal of 100% American made pipeline is laudable (and something we support), the fact is, our domestic industries are not currently set up to produce all of the pipeline we need. So until our own domestic industries are capable, the midstream sector will have to continue relying on “global sourcing” for at least some pipeline materials. That was the message conveyed by five trade associations representing the industry in comments jointly filed with the Dept. of Commerce last Friday. The industry is walking a tightrope. On one hand they want to support Trump’s efforts to use American manufacturing of pipes, on the other, they want to be able to finish projects under way or planned to begin soon…
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    Federal-State Showdown Coming in NY re DEC’s Pipeline Bans

    We’ve now written two posts addressing the jaw-dropping audacity of the corrupt New York Dept. of Environmental Conservation in their refusal to grant water crossing permits to a second major pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit and NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling”). The first project the DEC arbitrarily refused (due to political pressure from Cuomo) was the Constitution, one year ago (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Williams, builder of the Constitution, filed a lawsuit. As we pointed out last month, a decision in that case is expected soon (see Constitution Pipeline Still Waiting on “Biggie” Court Decision). If the decision goes against the DEC with respect to the Constitution lawsuit, it has the power to reshape the relationship New York State has with federally approved pipeline projects and will likely bleed over to the NFG pipeline as well. Increasingly we are seeing chatter that New York has picked a fight with the wrong party–the federal government. Some are saying that a state-federal showdown is coming, and coming soon…
    Read More “Federal-State Showdown Coming in NY re DEC’s Pipeline Bans”

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    US Forest Serv OKs Atlantic Coast Pipe Crossing Appalachian Trail

    Last Thursday was the last day for people, agencies, nutjobs, supporters–for anyone–to file an official comment with the Federal Energy Regulatory Commission (FERC) on the agency’s draft environmental impact statement for the Atlantic Coast Pipeline project. Dominion has proposed building the $5 billion Atlantic Coast Pipeline (ACP) project from West Virginia through Virginia and into North Carolina. One of the problems they’ve had is resistance from U.S. government agencies, including the U.S. Forest Service. In January 2016, the USFS told Dominion it was a no-go for running the pipeline through tiny pieces of either the Monongahela or George Washington national forests in West Virginia and Virginia (see US Forest Service Blocks Atlantic Coast Pipeline in National Forests). So we found it interesting that USFS, in filing a comment last Tuesday about the project, endorsed Atlantic Coast’s plan to drill underneath the famed Appalachian National Scenic Trail and the Blue Ridge Parkway. The pipeline will drill horizontally underneath both. While it’s good news that the USFS is not blocking the pipeline, the lifers still dug in at the EPA continue to pressure FERC to not release the final EIS, to do “further analysis”–which is code for delay the project until they can figure out a way to kill it. Here’s the good news from the USFS…
    Read More “US Forest Serv OKs Atlantic Coast Pipe Crossing Appalachian Trail”

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    NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling”

    Yesterday we brought you the sad (and angering) news that once again Gov. Andrew Cuomo has caved to political pressure from environmental Nazis and instructed the now-corrupted Dept. of Environmental Conservation (DEC) to deny stream crossing permits for National Fuel Gas Company’s Northern Access Pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). NFG issued a statement yesterday. They pointed out the following: NFG’s pipeline project would have FAR LESS impact on the environment “than either exploding an entire bridge structure and dropping it into Cattaraugus Creek (Route 219) or developing and continuously operating a massive construction zone in the middle of the Hudson River (Tappan Zee Bridge) for a minimum of five years.” Both of those projects were reviewed and approved by Cuomo’s DEC. NFG points out the utter and complete hypocrisy in the DEC decision. The DEC held talks with NFG about the project for 34 months without proffering major objections. And at the eleventh hour, they pulled this stunt. Without saying so overtly, the NFG statement says Cuomo yanked on the DEC’s chain to make a political decision. While there is no mention of a lawsuit against the DEC, you can bet your bottom dollar such a suit is coming…
    Read More “NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling””

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    FERC Issues Favorable Final EIS for PennEast Pipeline Project

    On Friday the Federal Energy Regulatory Commission (FERC) finally, after delaying a decision three times adding an extra eight months, issued a final Environmental Impact Statement (EIS) for the PennEast Pipeline project. We should add, it was a favorable EIS. While FERC found (as they always do) that there would be “some adverse environmental impacts” from the project, those impacts “would be reduced to less than significant levels” with PennEast’s proposed construction plans. This is a major milestone and all but assures the project will now go forward and will be built and go into service sometime in 2018. What potential roadblocks remain? For one, PennEast will need water crossing permits from New Jersey, which they filed for last week (see PennEast Files for Water Crossing Permits in NJ – Antis All Atwitter). Although there are a number of kook antis in NJ opposed to the project, Gov. Chris Christie is still in charge and the state Department of Environmental Protection is an executive branch agency. That is, they’ll approve the project. The only remaining wildcard is the recalcitrant Delaware River Basin Commission. The DRBC has proven itself to be politically motivated (leaning far left) and no friend of the oil and gas industry. Could the DRBC stop PennEast? Doubt it, but they might be able to slow it down. Below we have the good news about FERC’s approval, a copy of that approval (485 pages!), and some of the predictable anti-drilling claptrap responding to the approval…
    Read More “FERC Issues Favorable Final EIS for PennEast Pipeline Project”

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    Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) approved a long-delayed project–National Fuel Gas Company’s (NFG) Northern Access 2016 pipeline project (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). 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. Although FERC has now given permission to build it, the State of New York, specifically the state’s Dept. of Environmental Conservation (DEC), must issue stream crossing permits. We’ve seen this movie before. The corrupt DEC fiddle faddles around in an effort to stall and delay. NFG is in no mood to screw around with the Cuomo DEC, so they filed a motion asking FERC for a “reconsideration and clarification” on the role of the DEC in reviewing the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). Specifically, NFG wants FERC to rule that the DEC has NO role in reviewing the Northern Access 2016 project. The corrupt DEC doesn’t like being challenged and in March filed its own motion with FERC claiming NFG is out of line (see NY Fights Back Against NFG’s Request to Bypass DEC Pipe Approval). Now we know why they care so much. On Friday, just like they did with the Constitution Pipeline, the CORRUPT CUOMO DEC denied stream crossing permits for the Northern Access Pipeline project…
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    WV Severance Tax Higher than Projected – But Maybe Not for Long

    There’s some good news and, depending on your perspective, bad news when it comes to severance tax collections from natural gas (and coal) in West Virginia. According to West Virginia Department of Revenue in a report released last week, severance tax collections on oil, gas and coal in the Mountain State exceeded revenue projections by $13 million for the first nine months of the current 2017 fiscal year. The surplus reverses the trend from the previous year when WV lost severance tax money due to the drop in the price of oil and gas. Severance tax revenue, as we’ve pointed out before, floats up and down with the commodity price of oil and gas, unlike impact fee revenues which are much less tied to commodity prices (and one reason why PA drilling flourishes). So WV is seeing higher severance tax revenue–that’s the good news. The “bad” news is that Gov. Jim Justice and the WV Senate plan to cut the severance tax–putting the state back in the position of doing more with less…
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    Interior Sec. Zinke Fumbles the Bumble – Endangered Listing for Bee

    As MDN has previously chronicled, on September 22, 2016 the rogue U.S. Fish and Wildlife Service (USFWS) published a proposed rule to list the rusty patched bumble bee (Bombus affinis) as “endangered” under the Endangered Species Act (ESA). The rusty patched bumble bee is found in the Midwest and eastern parts of the U.S. If it gets listed, it will have SIGNIFICANT impacts on drillers and midstreamers (see “Endangered” Bumble Bee May Slow/Stop O&G Projects in Northeast). With just a few days left in Obama’s reign of terror, the Obama-influenced USFWS pulled the trigger and listed it (see USFWS Pulls the Trigger and Lists Bumble Bee as Endangered). But then a white knight rode in to town to (temporarily) save the day. The Trump Administration signed an order delaying the listing until March 21 (see Trump Administration Delays Listing Bumble Bee as Endangered). With the clock ticking, the oil and gas industry, along with farmers and others negatively affected by the listing, asked newly-minted Interior Secretary Ryan Zinke to delay the listing until next year, to give everyone time to figure how they’re going to comply with this newest inanity from USFWS. There is no clear-cut guidance on avoiding the bee’s nesting areas and habitat–a huge loophole through which drilling’s enemies will drive a Mack truck (powered by cooking oil, of course). But then Zinke fumbled and dropped the ball. The listing has gone forward and is now in force. Was this because Zinke was new on the job and still surrounded by Obamadroids? Was it because Zinke has one foot in the Washington Establishment? Who knows?! One thing is for sure, the lowly bumblebee may accomplish what bats and lawsuits could not–slowing down and stopping drilling and pipeline work in the northeast…
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