Regulation

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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”…
    Read More “EPA Axes Obama Reg Requiring O&G Methane Emission Reporting”

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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…
    Read More “VA Senate Committee Nixes Frack Trade Secret Protection”

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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…
    Read More “Trump Signs Exec Order Targeting EPA “Waters of the U.S.” Rule”

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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…
    Read More “Time to Swing the Ax at the EPA – Let the Firings Begin!”

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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!…
    Read More “Millennium Asks FERC for OK to Cut Trees in NY w/o DEC Permits”

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    NY State Legislator Tries to Derail Dominion New Market Project

    NY Assemblywoman Barbara Lifton – anti-drilling zealot

    In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. In March 2015 MDN friend Andy Leahy wrote about the pitched battle antis waged against the project (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). The antis were unsuccessful. The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). And then a real miracle happened. The New York Dept. of Environmental Conservation (DEC) approved the New Market compressor stations on Dec. 23, 2016 (see Miracle! NY DEC Approves Dominion’s New Compressor Stations). Barbara Lifton, an eco-left Democrat from Ithaca who serves in the New York Assembly, is now trying a last minute, very desperate attempt to stop the project from proceeding. Two weeks ago Lifton sent letters to both FERC and the DEC, hoping she can (ab)use her position to pressure one or the other (or both) to delay the project, which is the antis’ first step in killing a project…
    Read More “NY State Legislator Tries to Derail Dominion New Market Project”

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    WPX Pays $1.2M Fine to Settle 2012 Case of Leaky PA Impoundment

    In July 2014, MDN told you the water wells for two of three families living near a WPX recycled frack wastewater impoundment (i.e. “pond”), near Ligonier (Westmoreland County), PA, were determined to have been contaminated by that impoundment. That is, the Kalp impoundment leaked into the ground, according to the PA Dept. of Environmental Protection (DEP), and that caused a long-term problem with those wells (see WPX Wastewater Impoundment Source of Water Contamination in W PA?, and our follow-up story, Important Update on WPX Energy Leaking Impoundment in SWPA). A month later the DEP later made a final determination that the third family’s well, the elderly Ken and Mildred Geary, was also affected and that WPX will need to find a permanent water replacement solution for them too (see DEP Says WPX Needs to Replace 3rd Water Supply in SW PA). From the beginning, WPX owned up to the problem and worked hard to make it right by installing water treatment systems–for five (total) affected water wells. The Pennsylvania Dept. of Environmental Protection (DEP) continues to monitor the water for the affected wells. However, the DEP is now ready to close the door on this now three year-old case, by assessing WPX with a $1.2 million fine and a requirement that they complete a remediation of soil in the area that may still be affected…
    Read More “WPX Pays $1.2M Fine to Settle 2012 Case of Leaky PA Impoundment”

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    WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development

    The legislative session for West Virginia is in full swing–a session that lasts for 60 non-contiguous days at the beginning of each year. This year’s session opened on Jan. 11 and will conclude on Apr. 8th. As MDN previously reported, perhaps the biggest energy-related issue for this year’s session will NOT be (as it has in five previous sessions) a bill on forced pooling. Instead, the West Virginia Oil and Natural Gas Association (WVONGA) is pushing a legislation on co-tenancy and joint development (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). Senate Bill (SB) 244 has now been introduced to cover both co-tenancy and joint development. Co-tenancy is pretty easy to understand: if there are multiple owners for the mineral rights under a property–something that happens fairly regularly in WV–you would only need a simple majority of those owners to approve a drilling lease. Currently, if one person with a teeny tiny share objects, it stops the process. Joint development, on the other hand, had us stumped. But we got some insight into the issue from a couple of sharp MDN readers (see More on WV’s Push for “Joint Development” Instead of Forced Pooling). Currently there are a number of existing old leases, signed before shale drilling began, that prevents drillers from drilling a horizontal well across an individual property boundary line–until a new lease is signed. Joint development says if the driller already owns the leases on all adjoining properties they want to combine into a drilling unit, they can do so without signing a new lease. WVONGA says it corrects a loophole that prevents more drilling from happening. Rights owners say joint development legislation lets drillers have a freebie–instead of signing a new lease (for more money), the driller gets something never envisioned when the original lease was signed. Who’s right? We expect SB 244 to be hotly contested this year, like forced pooling has been in previous years…
    Read More “WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development”

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    FERC Issues Favorable Enviro Report for Mountaineer & Gulf XPress

    In December, the Federal Energy Regulatory Commission (FERC) threw a little cold water on two important pipeline upgrades to carry more Marcellus/Utica gas to southern markets. A final environmental impact statement (EIS) was due from FERC for both the Mountaineer XPress and Gulf XPress projects no later than April 28, 2017. FERC said that the deadline would slip by three months due to reroutes and additional environment information requested (see FERC Delays EIS for Mountaineer XPress & Gulf XPress Pipelines). MDN previously reported on Mountaineer XPress, which includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Gulf XPress consists of constructing seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. However, before FERC issues a final EIS for both projects, they must first issue a draft EIS (or DEIS)–which they did yesterday. The good news is that it was a favorable DEIS, signaling a favorable EIS will be issued by the end of April. The further good news is that FERC has scheduled five public hearings (four in WV and one in TN) for late March. We have FERC’s DEIS announcement below, along with a copy of the full DEIS (all 532 pages!)…
    Read More “FERC Issues Favorable Enviro Report for Mountaineer & Gulf XPress”

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    “Thousands” in PA Healthcare Send Ltr re Methane Regulations

    AFTERNOON UPDATE: We now have a copy of the so-called “open letter” as it was posted from the Scribd website to share with you (see it below). In viewing the properties of the document (image below) you will find that the the Environmental Defense Fund (EDF) and DC-based Smoot Tewes firm–started by two former Obama campaigners–were behind the letter. Kelsey Robinson, an EDF communications person in Austin, was the author. None of the signatories on the letter are from the EDF. In other words, this was a sham, made-up piece of anti-drilling propaganda from the beginning–and the Post-Gazette reporter played along. Just another example of fake news from a mainstream newspaper.

    A small group of anti-drilling healthcare workers (i.e. doctors, nurses, etc.) are, once again, trying to stop Marcellus Shale drilling in Pennsylvania. Their latest angle of attack is a publicity stunt using one of their favorite tools–the Pittsburgh Post-Gazette. The Post-Gazette runs a story today that opens this way: “Thousands of Pennsylvania doctors, nurses and other health care professionals have sent a letter to the Marcellus Shale Coalition, requesting that it stop legal challenges and lobbying against regulations aimed at controlling drilling air emissions and safeguarding public health.” Several paragraphs later we read this: “The letter, scheduled for release Monday, is signed by about 40 individual doctors, nurses and health care workers, and organizations representing more than 40,000 doctors, nurses, researchers, and health professionals.” In other words, “thousands” did not send a letter, but in reality, “about 40 individuals” did. That’s called fake news. And it’s being pedaled by the same rabidly radical antis (who happen to work in the healthcare industry) we’ve heard from before. They are committed to irrationally ending the use of fossil fuels, and they’ve apparently enlisted the help of a sympathetic “reporter” to do it…
    Read More ““Thousands” in PA Healthcare Send Ltr re Methane Regulations”

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    NJ Pinelands Commission Approves 22-Mile Pipe Thru Scrub Pines

    In January 2014 MDN brought you the story that due to incessant nagging from the NJ Sierra Club and the NJ League of [Liberal Democrat] Women Voters the Pinelands Commission, which oversees a stand of scrub pines in South Jersey, nixed a plan for a new natural gas pipeline to bring cheap, clean, abundant Marcellus Shale natural gas to South Jersey for use by residents and to feed an electric plant a local utility wants to convert from burning coal to natgas (see Sierra Club, LWV Chooses Coal over NatGas in South Jersey). In May 2014, NJ Gov. Chris Christie replaced two of the “no” voters on the Pinelands Commission, much to the consternation of the antis (see Marcellus Pipeline May Come to South Jersey After All). In August 2015, the staffers who actually do the work of the Commission decided to act, saying that they had the authority to approve the pipeline without a full Commission vote to do so. A panel of three New Jersey Appellate Division judges last November rejected that claim and said if you want to build a pipeline through the scrub pines, the full Commission must vote to do so (see Court Setback for NJ Pipeline Slated to Run Through Scrub Pines). So in January, the Pinelands Commission held a public hearing before scheduling a vote of the full Commission on the project (see Large Crowd Turns Out For/Against 22-Mile Pipeline in NJ Scrub Pines). Last Friday the Commission met and voted to approve the project. Finally! Of course the vote was not without incident. Anti fossil fuelers, behaving like petulant 3 year-olds, continually disrupted the meeting and tried to drown out the voting process with hollering, singing and chanting. In the end the misbehaving children–which included a priest and the head of the NJ Sierra Club–lost. They reacted like the petulant children (in adult bodies) they are, with threats and innuendo…
    Read More “NJ Pinelands Commission Approves 22-Mile Pipe Thru Scrub Pines”

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    FERC Guidance Requests Pipe & LNG Apps. Evaluate Global Warming

    It appears President Trump has a problem at the Federal Energy Regulatory Commission (FERC). He needs to get three new conservative Republicans appointed to the Commission stat, to stem the liberal ideology that has taken root from bureaucratic lifers who populate the agency. One of great debates during the Obama reign of terror was the demand (by Obamadroids) that FERC consider the impact pipeline projects would collectively have on mythical man-made global warming. FERC Commissioners steadfastly refused to do so because they are specifically prohibited from doing so under their charter. However, last week FERC issued a new guidance document for midstream companies that file new applications with FERC for pipeline projects. The new guidance, while saying it has not changed any policies or regulations, “advises” (bureaucratic language for “you darn well better do it”) that new pipeline applications should include a calculation of the projects’ “greenhouse gases and weigh the impact on local, state or regional climate goals.” In addition to these new hoops (i.e. non-regulation regulations) imposed by the bureaucrats at FERC, the agency also released a new “guidance” document (i.e. new regulatory hoops) for LNG project applications. Yep, it “advises”–but doe not require–LNG applications to “calculate” potential impacts on mythical man-made global warming…
    Read More “FERC Guidance Requests Pipe & LNG Apps. Evaluate Global Warming”

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    PA DEP Extends Public Comment Period for Methane Regs

    In December the Pennsylvania Dept. of Environmental Protection (DEP) unveiled new regulations to clamp down on methane emissions and other other air pollution that allegedly comes from shale drilling sites (see PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites). The onerous new regulations, not in effect yet, were originally prompted by bullying from the federal Environmental Protection Agency. Even though EPA pressure has disappeared under President Trump, PA Gov. Wolf still intends to push forward with these regulations. According to the DEP, the proposed General Permit 5A (GP-5A) and the revised General Permit 5 (GP-5), “establish updated Best Available Technology (BAT) requirements for the industry regarding air emission limits, source testing, leak detection and repair, recordkeeping, and reporting requirements for the applicable air pollution sources.” After some final tweaks, the DEP released draft versions of the new permits (i.e. regulations) earlier this month (see PA DEP Seeks Public Comment on Regs for Methane, Compressor Stns). The original public comment period was slated to last 45 days, ending in March. The new news is that, for no stated reason, the DEP has extended the comment period until June 5th…
    Read More “PA DEP Extends Public Comment Period for Methane Regs”

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    Augusta County, VA Votes to Illegally Ban Fracking

    It’s always breathtaking, and disturbing, when a small group of individuals decide to take away the Constitutional property rights of their fellow citizens. We always wonder, is this how it started in 1920s Germany? The Augusta County (VA) Board of Supervisors voted 6 to 1 Wednesday night to illegally take away the property rights of every citizen in the county by enacting a total ban on fracking in the county. Is there any shale in the county to frack? No idea, but we doubt it. To be fair, the first county in Virginia to become lawless in this regard was King George County, last summer (see King George County, VA Commits Fracking Suicide with Vote to Ban). Not helping matters is the confusing and inaccurate information coming from Virginia’s Attorney General, Mark Herring (see Virginia AG Says Localities Can “Regulate” & “Prohibit” Fracking). We always feel like a funeral is in order when Constitutional property rights are trampled as they have been in Augusta County…
    Read More “Augusta County, VA Votes to Illegally Ban Fracking”

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    Anti-Drilling Democrats Ask Pres. Trump to Fill Up FERC

    A group of radical, waaaaaaay left Democrats in the U.S. House of Representatives sent a letter to President Trump on Wednesday requesting that Trump appoint new members of the Federal Energy Regulatory Commission post haste. Get ‘er done–now. The ring leader of the House Dems sending the letter is Massachusetts Congressman Joe Kennedy III. Wait a minute. Democrats hate FERC because FERC is “nothing more than a tool of big oil and gas” and a “rubber stamp” approving pipeline projects. Why would Kennedy and his merry band of Lib Dems want Trump to appoint three new Republican members of the Commission? When you figure out the answer to that one, please share it with us–because this makes zero sense to us…
    Read More “Anti-Drilling Democrats Ask Pres. Trump to Fill Up FERC”