Regulation

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    Mountaineer NGL Storage in Monroe County, OH Caught in Red Tape

    In April of 2016, Mountaineer NGL Storage announced an open season for a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica). Natural gas liquids (NGLs), including ethane, would be stored at the facility. It is a key, missing component in a plan to build at least one, and likely more than one ethane cracker plants in the region. A storage facility for both natural gas and NGLs is a critical part of natural gas infrastructure. Mountaineer recognized that the Marcellus/Utica will need such a storage facility. A month after the open season, Mountaineer announced it was successful and that they would move forward with the project (see Mountaineer NGL Storage Open Season Successful, Development Begins). Then in October, Mountaineer completed a test well in the salt formation–testing it for thickness. The test was a success (see Mountaineer NGL Storage Test in OH a Success, Construction in 2017). Plans, at that time, were for Mountaineer to begin construction later this year. Is the project still on track? Here’s an update…
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    PA Enviro Justice Listening Tour Continues to Draw Almost No One

    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 (see PA DEP to Conduct ‘Listening Tour’ for ‘Environmental Justice’). The DEP finally set up a schedule for its listening tour, which began in March 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. The 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. Another stop along the tour was held last week in Williamsport, PA. The pattern repeats. If anything, there were fewer people in the crowd–about 20 according to the local newspaper. Next to nobody turns up for these things. Why is the DEP wasting its time, and PA taxpayers’ money?…
    Read More “PA Enviro Justice Listening Tour Continues to Draw Almost No One”

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    Dear President Trump: FERC Needs a Quorum. NOW.

    We reported back in February that a group of far-left House of Representatives Democrats sent a letter to President Trump imploring him to appoint new members to the Federal Energy Regulatory Commission (see Anti-Drilling Democrats Ask Pres. Trump to Fill Up FERC). Then in March, a group of lefty Senate Dems did the same thing (see Senate Democrats Send Letter to Trump Requesting New FERC Members). FERC is the agency that, among other things, reviews and approves interstate oil and gas pipeline projects. The agency has been without a quorum since Feb. 3, when Norman “cry baby” Bay quit in a huff (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). So why would those who hate FERC want it staffed up and humming along? Because without a quorum, FERC can’t hear requests for re-hearing. In Democrat-land, you want to get to a liberal judge as quickly as possible to stop a pipeline project. Dems can’t litigate until FERC denies a request for re-hearing a decision to green light a pipeline project. Without a quorum, previous decisions stand and pipelines are getting built–a five alarm emergency is radical enviro-land. So they’re trying to pressure Trump to appoint at least one more commissioner, stat. But the antis aren’t the only ones. Now those on the pro-drilling, pro-pipeline side of the isle are joining the chorus and attempting to “encourage” (pressure, cajole, goose) President Trump into getting more commissioners appointed asap. The Natural Gas Supply Association, American Gas Association, Energy Equipment & Infrastructure Alliance, Independent Petroleum Association of America and Interstate Natural Gas Association of America penned a joint, open letter to President Trump, published in a major Washington, DC newspaper, requesting he get at least one FERC appointment done. Soon. ASAP. Now. Even if that happens, it’s likely to take another two months before the new commissioners are seated and working…
    Read More “Dear President Trump: FERC Needs a Quorum. NOW.”

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    Big Chemical Selfishly Wants to Block NatGas Exports

    Big Chemical–companies like Dow Corning, BASF, Eastman Chemical and others, via their trade association, have launched a war to try and block American-made natural gas from getting exported to other countries. The reason? They want the natural gas they buy (in very large quantities) to be as cheap as possible. They recently sent a letter (copy below) to Secretary of Energy Rick Perry asking Perry 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. Strumming the patriotic heartstrings, the the Industrial Energy Consumers of America (IECA) says keeping all the gas here will grow more American jobs–and The Donald loves jobs for Americans. These are the same companies that, at the drop of a hat, left our shores and built plants in other countries. To play the patriotic “keep it all home” card is disgustingly hypocritical…
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    PA Bill Would Restore Dormant Mineral Rights to Surface Owners

    The issue of returning mineral rights to surface owners has long been an issue we’ve tracked on MDN–for Ohio. In Ohio, the issue revolves around legislation called the Dormant Minerals Act (DMA). In September 2016, the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer back to the surface owner under certain conditions. That same kind of legislation may be coming to Pennsylvania, under a bill about to be introduced by PA Rep. Garth Everett. Does that name sound familiar? It should. Earlier this year Everett introduced “minimum royalty” legislation that would guarantee PA landowners would get minimum royalty payments of 12.5%–regardless of any kind of post-production expenses (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Everett, a champion for landowners, is now back with a bill that would transfer back mineral rights to the surface owner following 20 years of dormancy…
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    PA Lib Dem Introducing Bill to “Fix” Strippers Once and for All

    Pam Snyder

    The kerfuffle over strippers in PA continues–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy. The PUC, under liberal Democrat chairwoman Gladys Brown, is painting nightmare scenarios where impact fee revenue will be in jeopardy (see PA PUC Wants Act 13 Language Changed to Avoid Stripper Abuse). Brown wants the PA legislature to pass a new law amending the Act 13 law to “clear up” the language to say if a well produces more than 90 Mcf/day in ANY month, it qualifies to pay the impact fee. Brown has found a willing accomplice in PA State Rep. Pam Snyder, liberal Democrat representing Greene, Fayette, and Washington Counties. Snyder issued a press release to say she’s about to introduce a bill that Brown wants…
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    Elizabeth Twp Hearing re Alternate Location for Gas Power Plant

    In January 2016, Invenergy announced their intention to build a natgas-powered electric plant in Elizabeth Township, in Allegheny County (see Invenergy Eyes SWPA for Second Marcellus-Powered Electric Plant). The proposed Elizabeth plant, modestly sized at 550 megawatts, would be built on a brownfield site near Pittsburgh. Even though the site is a former landfill where fly ash was dumped, making it unusable for just about any other purpose, a group of local residents would prefer to keep the site a contaminated dump rather than convert it to a beneficial use like generating electricity (see Invenergy Gets Pushback on Proposed Natgas Power Plant in SWPA). The local antis enlisted the support of Elizabeth Township’s zoning board, which rejected the plan in June 2016 (see Elizabeth Twp Rejects Clean Invenergy Power Plant at Dump Site). So Invenergy sued the town in October (see Invenergy Sues Elizabeth Twp to Allow NatGas-Fired Electric Plant). Rather than drag out the lawsuit, causing Elizabeth taxpayers big money to defend a defenseless decision, Invenergy offered an olive branch–locating the plant at a new, more rural location about 10 miles away (see Invenergy Proposes Deal to Elizabeth Twp to Move Gas Power Plant). Last night the Elizabeth Planning Commission held a 2-hour hearing to take comments from supporters, and the ninny nannies who still oppose it because it burns an evil, nasty, vile fossil fuel…
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    Nuke the Nukes: Harrisburg Battle to Prop Up Failing Nuke Energy

    As MDN reported last week, the battle lines have been drawn and both sides have come out swinging in a battle over whether ratepayers should bail out economically failing nuclear power plants (see Battle Lines Drawn in PA to Prevent Nuke Energy Special Treatment). Five nuclear power plants in PA provide 37.5% of all electricity used in the state. There are no “greenhouse gas” emissions from nuclear power, making it attractive for some green radicals–but nuclear waste is a big problem because it never goes away, at least not for thousands of years. You have to store it. The biggest problem with nuclear energy today is that it costs more to produce electricity from nukes than it does from cheap natural gas-fired plants. Nukes can no longer compete. So in a couple of corrupt states–New York and Illinois–the nuke lobby convinced regulatory bodies and the legislatures to pass laws favoring nukes–forcing ratepayers to pay more to keep the nukes going. That battle has now come to Pennsylvania. One of the lobbyists hired by the nuke industry is John Hanger–former Secretary of the PA Dept. of Environmental Protection (DEP) under Ed “fast Eddie” Rendell. Hanger briefly ran in the Democrat primary for governor (losing out to Tom Wolf). Hanger ran on a platform of legalizing marijuana–hence our moniker of “pass a joint for John” (see Pass One Last Joint for John Hanger). After he dropped out, Hanger went to work in the Wolf Administration for a period of time, as Wolf’s Secretary of Policy and Planning. But after a year of that Hanger quit and moved out of PA–to be with his wife and daughter in Massachusetts (see John “Severance Tax” Hanger Quits Tom Wolf Administration – Why?). Hanger is back–“advising” (i.e. lobbying) for the nuclear industry in Harrisburg…
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    Hearings Scheduled for Proposed Duke Pipeline in Cincinnati

    Duke Energy Ohio, an LDC or “local distribution company” serves some half a million customers with natural gas in Ohio. The company has a 12-mile pipeline to flow the gas it needs, to move it from one point to another in Hamilton County (Cincinnati), in the southwest corner of the state. The Duke pipeline has been in service since the 1950s. Duke needs to replace that pipe or some of those half million Duke customers won’t get natural gas any more. Because anything to do with “fracking” or “pipelines” has been so thoroughly bastardized by the media and anti-fossil fuel protesters, there has been, of course, opposition to Duke’s plan. So Duke “listened” and has scaled back their plans. Instead of building a 30-inch gas pipeline running at 600 psi (pounds per square inch), the revised plan calls for a 20-inch pipeline running at 400 psi (see Duke Energy Modifies/Scales Back Plan for SW OH Pipeline). Duke proposed two potential routes, both of which are opposed by antis, including a group calling themselves NOPE–Neighbors Opposing Pipeline Extension. We call them DOPEs–Dummies Opposing Pipeline Extensions. Will the DOPErs volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built? Not on your life! Two public hearings have now been scheduled–one for June 15 and the other July 12. The DOPErs are gearing up to fight…
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    Big Green’s Game Plan for Fighting a Trimmed Down EPA

    Big Green is a big business. Radical enviros have worked hard over the eight years of Obama’s reign of terror to build and expand the Environmental Protection Agency far beyond its originally intended purpose. The Obamadroids’ abuses via the EPA were breathtaking–many of which were chronicled here on MDN. Things like the odious and misnamed Clean Power Plan, the fruity Waters of the United States (WOTUS) regulation. Capturing every last molecule of so-called fugitive methane from oil and gas operations. The EPA became the modern day environmental equivalent of the Gestapo. So no wonder the environuts are apoplectic over President Trump’s mission to put the EPA on a diet and shrink it back to its pre-regulatory-obese size. But don’t think for a minute that the radicals will just stand by and watch it happen. They are fighting and fighting hard to prevent the enormously bloated agency from shedding budget, people, and regulations. We stumbled across their game plan for how they intend to fight Trump every inch of the way…
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    PA PUC Wants Act 13 Language Changed to Avoid Stripper Abuse

    It seems the controversy in Pennsylvania over the Snyder Brothers’ strippers isn’t going to end any time soon. No, not those kinds of strippers, silly! We’re talking about stripper wells, which are defined in PA as wells that produce less than 90 thousand cubic feet (Mcf) for a one month period. Stripper wells are vertical wells that don’t produce nearly as much gas as horizontal shale wells. In 2012 PA passed the Act 13 law that includes a fee on wells targeting shale layers, including the Marcellus. And here’s where it gets a little complicated. Snyder Brothers drills mostly conventional (vertical only) wells. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus (all of them fracked). Initially those wells produced more than 90 Mcf/month, but by December of the year they were drilled, they produced less than 90 Mcf. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/month for “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf. The argument back and forth is whether the intent was “any single month” or not as the trigger to exempt a well from paying the fee. Snyder Brothers went to court and in March, they won, exempting those wells from impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). Now the PUC is (a) mad, and (b) worried that other drillers may use the court ruling to argue they don’t owe impact fees. So the PUC is doing two things: (1) The PUC appealed the lost case. (2) The PUC is asking Gov. Wolf, and the legislature, to “fix” the language in the original 2012 Act 13 law, to slant it in their favor…
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    2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells

    We’ve previously reported on the story of two Pennsylvania towns that were either hoodwinked, or perhaps willing led astray, by the radical Community Environmental Legal Defense Fund (CELDF) into passing (now overturned) bans on fracking and injection wells in their towns–Highland Twp (Elk County) and Grant Twp (Indiana County). The two townships thought they would do an end-run around the state’s authority to issue permits for two injection wells–one in each township, by re-incorporating under so-called home rule charters. The towns essentially declared themselves independent of the state for a variety of matters, including oil and gas permits–which the PA state constitution clearly says is a function of ONLY the state Dept. of Environmental Protection. In March, the DEP issued final permits to each town, and at the same time sued each town to get those portions of their home rule charters, dealing with oil and gas, overturned (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). The new news is that the towns will “stand down” and, during their lawsuits, not oppose the DEP’s permits. The towns have “temporarily” acquiesced and will allow the companies building the wells to proceed…
    Read More “2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells”

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    Lack of Pipeline Approvals by Cuomo = Future Power Outages in NY

    New York Gov. Cuomo has now blocked the Constitution Pipeline from getting built (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline), and the Northern Access Pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). Those two projects are critical–not only for Pennsylvania drillers, but for NY’s natural gas customers. However, the cancer of pipelineitis seems to have now spread. The Dept. of Environmental Conservation (DEC) is behaving with two smaller-yet-vital pipeline projects as they did with both of those large pipeline projects. The behavior observed is this: delay for a year or more, and when you can no longer get away with more delays, simply deny the permits. This time their delay/denial routine threatens electric reliability in the Empire State–because the two small pipeline projects they’re doing it with would feed new electric generating plants. With the imminent closing of a nuclear plant near New York City–by Cuomo–our state needs massive amounts of new electric generating capacity. Fields and fields of solar panels and hillside upon hillside of windmills can’t replace all of the electricity disappearing when Indian Point closes. Natgas generation has to come online–and if it doesn’t, get read for rolling blackouts…
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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…
    Read More “PA ‘Environmental Justice’ Session Brings Out Handful of Activists”

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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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