Regulation

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    Williams Keeps Pressure on PA DEP to Issue Atlantic Sunrise Permits

    The Federal Energy Regulatory Commission (FERC) approved Atlantic Sunrise in early February (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). Even though the project is approved, that’s not the end of the story. Regulatory work still remains, including approvals from the Pennsylvania Department of Environmental Protection (DEP) and the U.S. Army Corps of Engineers. Construction of Atlantic Sunrise is scheduled to begin later this year, pending the receipt of these regulatory approvals. Williams is gently pressuring the DEP to hurry it up. Fortunately for Williams, the PA DEP is not like the corrupt New York Dept. of Environmental Conservation (DEC). In NY, the DEC caved to political pressure from Gov. Cuomo and denied Williams stream-crossing permits (a matter now in court, see Constitution Pipeline Case Goes to Court in 2 Weeks, Briefs Filed). In PA, the DEP will no doubt do its job and grant the permits. The problem is, they’re taking waaaaaaay too long to do it…
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    Rover Pipeline Challenges FERC re Demolishing “Historic” House

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–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 (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. FERC says Rover should have reported their decision to demolish the house, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s why FERC didn’t issue a blanket certificate for construction of Rover. So ET and Rover have now filed for a rehearing, claiming FERC erred in not granting the blanket certificate…
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    Proposed 13-Mile Pipeline in SW OH Under Review, DOPEs Oppose

    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 gas it needs to move from one point to another in Hamilton County (Cincinnati), the southwest corner of the state. The Duke pipeline has been around and in service since the 1950s. Duke needs to replace that pipe or some of the 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 was, 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’d call them DOPEs–Dummies Opposing Pipeline Extensions. Will these people volunteer to shut off the natural gas to their homes and businesses if the pipeline doesn’t get built?…
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    OH Court Rules Landmen Need to be Licensed Real Estate Brokers

    We know this is an important story, and we know that some (many?) MDN readers will be interested. But this is one of those rare cases where we just can’t get our heads around the scope and importance of the story–and who it really affects. We had thought that landmen in Ohio (agents who deal with landowners and mineral rights owners, getting them to sign leases or easements) did not have to be licensed real estate agents in order to do their job. However, a court case just decided in Ohio’s Seventh District Court of Appeals seems to say that at least some landmen DO need to be licensed real estate agents, in order to get paid a commission on deals they’ve brokered. We don’t think the decision requiring a real estate license applies to all landmen in Ohio (although we’re open to correction on that point). Below we have information about the Dundics v. Eric Petroleum Corp. case, along with previous info from 2014 that indicates the reverse–that Ohio landmen DO NOT need to be licensed real estate brokers. Does the Dundics case supersede previous rulings? Is the Dundics case dealing with an obscure situation that doesn’t apply to all landmen? We simply don’t know…
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    PA DEP Sec McDonnell Defends Overreach of GP-5/5A

    At last week’s Oil & Gas Awards’ 2017 Northeast Industry Summit, MDN editor Jim Willis heard former Pennsylvania Dept. of Environmental Protection (DEP) Secretary, Michael Krancer, say that the DEP’s proposed changes to General Permit (GP) 5 and 5A are “a big deal” and that the permits, as drafted, have the potential to stop PA natural gas production for 12-18 months while new regulations get sorted out (see Big News from the O&G Awards Northeast Industry Summit). We’ve written a fair bit about GP-5/5A, most recently in December (see PA DEP Extends Public Comment Period for Methane Regs). Our take on GP-5/5A is that it will target a reduction in fugitive methane. However, Krancer said the new rule would also stop any new pipeline construction through wetlands (virtually any and all new pipelines) until new permitting procedures are hashed out–hence his startling statement about production stopping for more than a year. Krancer also said GP-5/5A will regulate small gathering lines. PA’s legislators are very concerned about GP-5/5A and submitted a letter to DEP Acting Secretary Pat McDonnell in February with 21 questions about the new rule change. McDonnell met with several Senators and subsequently responded, in writing, by addressing each of the 21 questions. We have McDonnell’s letter and responses below…
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    Josh Fox, Maya & Friends Plan to Protest Any FERC Appointments

    You know it’s a slow week for anti-fossil fuel crackpots like Josh Fox and Maya van Rossum (THE Delaware Riverkeeper) when they have to hold a conference call to begin protesting something that hasn’t even happened yet. The Donald has been a busy boy, trying to weed out Obamadroids deeply embedded in the federal government. The President is responsible to appointing something like 5,000 people to positions throughout the federal government. Most of them pass through Presidential Personnel (an office MDN editor Jim Willis once worked in during the Reagan Administration, back in the Jurassic period) and do not require Congressional approval. But one agency of primary concern for us, the Federal Energy Regulatory Commission (FERC), is still missing three of five Commissioners. Trump has not (yet) put forward nominees to staff it, nominees who will have to be approved by the Senate. But lack of nominees isn’t stopping Josh Fox, Maya van Rossum, a PA pig farmer and others with an abject hatred of FERC because FERC is responsible for evaluating and approving pipeline projects. You know, pipelines that flow evil, disgusting, horrible fossil fuels that are poisoning Mom Earth. On a conference call scheduled for tomorrow, Josh, Maya & friends will outline their opposition to ANYONE Trump puts forward. Doesn’t matter who it is. The Dalai Lama? Against him. BH Obama? Against him too. Meryl “hates Donald Trump’s guts” Streep? Against her, even though she’s a hater. Queen Hillary? She’s yesterday’s news. Mickey Mouse? Set out a mousetrap. That will be the strategy outlined on tomorrow’s conference call…
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    FERC Green Lights Rover Pipeline Construction

    Along with chainsaws buzzing (until Mar. 31) and wood chips flying, Rover Pipeline has now started the backhoes. As MDN previously reported, on Feb. 3 the Federal Energy Regulatory Commission (FERC) gave its final approval for Energy Transfer’s Rover Pipeline project, 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 (see ET Rover Pipeline Gets Final Approval by FERC). At the time we observed Rover had received permission to clear trees before the Mar. 31 “can’t kill roosting bats” deadline. However, Rover did not have permission to begin digging trenches and laying pipeline. That permission came this past Friday…
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    Ohio EPA Begins Using New General Permits for Compressor Stations

    Compressor stations in Ohio, needed to flow natural gas through numerous new pipelines being built, require a permit from the Ohio Environmental Protection Agency (EPA) in order to get built. The Ohio EPA considers each application independently, a laborious and long process. In an effort to streamline that process, the Ohio EPA began work on a plan in September 2015 to issue “general permits” for compressor stations (see Ohio EPA Seeks “Pre-Comments” on Compressor Station Permit Plan). A general permit is, essentially, a cookie cutter approach. If midstream companies agree to the provisions in the general permit, i.e. they commit to using certain types of equipment and certain standards, the permit process will speed along much faster. In April 2016 Ohio EPA floated draft versions of the new general permits (see Ohio EPA Seeks Comments on New Permits for Compressor Stations). The long wait is over. Ohio EPA announced last week that the new general permits (there are a BUNCH of them) are ready for use…
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    Antis Find Solace in Bay’s Final Pot Shot at FERC

    Norman Bay, formerly of FERC

    Anti-fossil fuel groups adamantly opposed to new pipeline projects are finding solace, and perhaps legal assistance, in the remarks made by former Federal Energy Regulatory Commissioner Norman Bay. There were three FERC Commissioners, the minimum required to vote on projects, until Bay left. Why did he leave? When Bay (a Democrat) joined FERC, he was promoted by Barack H. Obama to be the Chairman of the Commission, displacing Cheryl LaFleur (another Democrat) from her role as Chairman. LaFleur didn’t let Obama’s decision affect her–she stuck around and kept working. When Donald Trump took office, he decided, which is his prerogative, to elevate LaFleur to be Chairman once again, “demoting” Bay to regular old Commissioner. Bay immediately resigned in a huff. Thing is, Bay’s resignation was calculated to do maximum damage to current pipeline projects under review, most of them in the Marcellus/Utica. On his last day in office, along with a flurry of FERC approvals, Bay issued a statement as part of one of the approvals that FERC should “analyze the environmental effects of increased regional gas production from the Marcellus and Utica” shale regions (see FERC Commissioner Norm Bay Targets M-U on Way Out the Door). Now, anti-fossil fuel lawyers are using his words to help make their case against authorizing pipeline projects…
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    PA DEP Holds Public Hearing on PennEast Compressor Station

    PennEast Pipeline is a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ. Along the entire length of the pipeline, there will only be one compressor station–located in Carbon County, PA. This past Wednesday the PA Dept. of Environmental Protection (DEP) conducted a public hearing on the compressor station plan. Nominally the hearing is to elicit feedback from the public. However, as is so often the case, these are not really hearings but theatrical performances where anti-drilling kooks put on the equivalent of a circus act. But antis weren’t the only ones who showed up for the hearing. Plenty of supporters were there too…
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    Big News from the O&G Awards Northeast Industry Summit

    Yesterday MDN editor Jim Willis had the pleasure of attending, and moderating two panel sessions, at the Oil & Gas Awards 2017 Northeast Industry Summit in Pittsburgh. (Jim is back in Binghamton today, very tired!) When the sessions are made available via video, Jim will post them here on MDN. In the meantime a few words about the sessions and presenters, and about what we consider some pretty big news coming out of yesterday’s meeting. The day began with MDN friend George Stark, Director of External Affairs for Cabot Oil & Gas, making an impassioned plea for everyone in the industry to get involved with telling the great story of our beloved industry. Don’t think it’s someone else’s role–it’s the role of every single person in the industry, from janitor to secretary to CEO. George gave a rousing, opening address. George was followed by a panel discussion led by MDN friend Charlie Schliebs, Managing Director of Stone Pier Capital. Charlie’s panel tackled some interesting topics about mergers and acquisitions, bankruptcies, and where they see the price of natural gas going over the next several years. After Charlies panel was a panel discussing pipeline projects. The moderator was Fred Lowther, a partner at powerhouse energy law firm Blank Rome. Fred, who once worked on the Iroquois Gas Transmission Pipeline project when it was being built, said over the years since that pipeline was built he’s often joked they failed to do a “celebrity impact statement” when building it. Liked that line! After Fred’s panel was a talk given by Michael Krancer, also with Blank Rome (and former Secretary of the PA Dept. of Environmental Protection). Mike is always a take-no-prisoners presenter. We’ve always loved the way he thinks and expresses himself. Yesterday was no different. It was during Mike’s talk that we found what we believe was the most important thing said yesterday. It has to do with PA’s proposed General Permit 5A. Mike said if GP-5A is enacted as written, it will result in a 12-18 month moratorium on production in Pennsylvania…
    Read More “Big News from the O&G Awards Northeast Industry Summit”

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    EPA Axes Obama Reg Requiring O&G Methane Emission Reporting

    Last year the federal Environmental Protection Agency (EPA) under Barack Hussein Obama once again far exceeded its constitutional limits by enacting a new methane regulation that requires oil and gas operators to install all sorts of expensive equipment in a vain attempt to sniff out so-called fugitive methane (see EPA Does it Again: Tries to Destroy O&G with New Methane Rule). The erroneous thinking goes like this: even a little bit of methane leaking into the atmosphere is far worse than just about all carbon dioxide create when it comes to global warming, so we have to stop it. And the way to stop it is by forcing oil and gas companies (drillers, pipeliners, etc.) to ensure not one stray CH4 molecule ever escapes into the atmosphere. The EPA totally ignores the FACT that burping and farting cows put far more methane into the atmosphere than the oil and gas industry. But we digress. Not long after the EPA tried this latest heavy-handed approach with the o&g industry, 15 states sued to stop it, including Scott Pruitt as Attorney General from Oklahoma (see 15 States File Lawsuits to Block EPA O&G Methane Rule). It must have given Scott, now EPA Administrator, enormous satisfaction to issue the order yesterday that withdraws the methane rule “immediately”…
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    VA Senate Committee Nixes Frack Trade Secret Protection

    In January MDN told you about an effort in Virginia to ensure new changes in Virginia’s environmental regulations that require “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning” would still protect trade secrets–the exact combinations of chemicals used by drillers when fracking (see Proposed VA Law Would Protect Frack Chemical Trade Secrets). As we said at the time, Big Green groups are demagoging the issue, claiming drillers want to keep fracking chemicals secret from first responders and doctors. Not true. But that doesn’t stop the headlines from continuing, like “Citizens have a right to know about fracking chemicals” and “King George supervisors lobby for disclosure of fracking chemicals” (see Debate & Misinformation re Frack Chemical Disclosure Rages in VA). Here’s the thing: fracking chemicals ARE required to be disclosed. The proposed law that modifies the regulations doesn’t change that. The new law only shields the exact combinations of chemicals from being disclosed–and even the exact combination can/will still be exposed for doctors and first responders. However, the damage has been done. Enough lies hit the fan that members of a Virginia Senate committee have rejected it, ending the bill before it could receive a full vote. In other words, Senators believed the lies…
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    Trump Signs Exec Order Targeting EPA “Waters of the U.S.” Rule

    In May 2015, Obama’s 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-à-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 redefines everything down to mud puddles (no, we’re not exaggerating) as subject to the federal Clean Water Act. 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). It took a year, but in November 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). It now looks like we won’t have to litigate it out after all. Yesterday, fulfilling a campaign promise, President Trump signed an Executive Order directing the EPA to reconsider WOTUS. Among the many at the signing ceremony was the new Administrator of the EPA, the marvelous Scott Pruitt–who has pledged to move forward immediately with rolling back WOTUS…
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    Time to Swing the Ax at the EPA – Let the Firings Begin!

    Less than two weeks ago Oklahoma Attorney General Scott Pruitt was confirmed to be the new Administrator of the Environmental Protection Agency (see Scott Pruitt Confirmed to Lead EPA – Swamp Draining Begins). As we observed at the time, “A labor union representing more than 9,000 EPA employees actively opposed Pruitt’s confirmation. We personally think those 9,000 employees should be fired.” Perhaps our wish is coming true! Well, at least in part. President Trump is proposing to ax 24% off from the EPA’s annual, way overinflated budget. The speculation is that the new budget will result in firing 20% of the EPA’s 15,000 employees. Hooray! It’s about time. Let’s see how the insular bureaucrats who love to tell us all what to do like getting an unemployment check…
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    Millennium Asks FERC for OK to Cut Trees in NY w/o DEC Permits

    New York State is a hopeless, corrupt mess. MDN previously reported on a $900 million natural gas-fired electric generating plant coming to Orange County, NY (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). The CPV (Competitive Power Ventures) Valley Energy Center project is being opposed by local anti-drilling ninny nannies, including Hollywood star James Cromwell. No matter. It’s already under construction. The problem now is getting a 7.8 mile pipeline, an off-shoot pipeline from the mighty Millennium Pipeline, built to the plant to supply the natural gas it will need to run. In November the Federal Energy Regulatory Commission (FERC) approved the short pipeline (see FERC Approves Pipeline to Orange County, NY NatGas Power Plant). However, as with the Constitution Pipeline, the Cuomo Dept. of Environmental Conservation (DEC) is intentionally blocking this pipeline using delays. Millennium is not, like Williams did with the Constitution, sitting on its hands waiting for the DEC. The Millennium is aggressively pushing the DEC to grant the necessary water crossing permits and sued the DEC in January to make it happen (see Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay). As with other such projects, Millennium is playing beat the clock with respect to cutting down trees before March 31. After that date federal law prohibits large-scale tree removal in order to protect roosting bats (don’t ask). Millennium, we are happy to report, continues to push aggressively. They’ve asked FERC for permission to cut down trees not on or near swamps, er a, wetlands, without having state permission in hand to do so. In other words, Millennium is asking FERC to put its boot on the neck of the DEC and push. Love it!…
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