Regulation

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    Miracle! NY DEC Approves Dominion’s New Compressor Stations

    The anti-fossil fuel nutters in New York have finally lost a major battle they’ve waged against the shale industry for the past 5+ years. 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 Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). However, with a ban on fracking in NY, and with projects like the FERC-approved Constitution Pipeline being blocked by the politicized NY Dept. of Environmental Conservation (DEC), it seemed like no pipeline projects or anything to do with shale energy would ever get approved–until we dump Cuomo. Then a miracle happened! At the end of 2016, the politicized DEC finally approved Dominion’s New Market Project and the construction of the compressor stations. MDN owes a huge debt of gratitude to Andy Leahy who unearthed what the DEC clearly wanted to keep quiet. Andy found a reference to the New Market Project approval in the left-leaning Politico and went nosing around and found documentation for the official DEC approvals (below)…
    Read More “Miracle! NY DEC Approves Dominion’s New Compressor Stations”

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    Rice Energy Sues West Pike Run Twp re Compressor Station Approval

    Tired of having their application to expand a pipeline compressor station blocked, Rice Energy has sued West Pike Run Township in Washington County, PA. In the lawsuit, Rice says that the town had 90 days (under law) to render a decision on the request and did not do so. Eventually the town told Rice “no” to expanding an existing compressor station. The lawsuit asks the court to force the town to approve the application forthwith…
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    Penn Township Allows Drilling to Avoid $300M Lawsuit by Apex

    This news is a bit dated, from last December, but important nonetheless. Under threat of a $300 million lawsuit, Penn Township (Westmoreland County, PA) voted to allow Apex Energy to build two Marcellus well pads, and arranged for more hearings on four more well pads. In April 2016 Penn Township blocked permits for Apex well pads (see Penn Twp Blocks Apex Energy Well Pad Request, What Next?). In May it happened again (see Penn Twp Commissioners Block Apex Shale Well Request in 3-2 Vote). In June the town began to ramp up talk of uber-restrictions on drilling, via zoning ordinances (see Penn Township Considering More Restrictions on Drilling). And in August, the town held a hearing on a proposed new Marcellus-killing ordinance (see Penn Twp Hearing Discusses Marcellus-Killing Ordinance). Meanwhile, Apex was losing $70,000 PER DAY by not drilling on land for which they held valid, legal leases, and for wells that were duly permitted by the PA Dept. of Environmental Protection. So Apex launched a lawsuit to make the town pay for its harmful actions. By December, the town board was singing a different tune (about time)…
    Read More “Penn Township Allows Drilling to Avoid $300M Lawsuit by Apex”

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    Ohio EPA Issues Wastewater Discharge Permit for PTT Ethane Cracker

    We have some progress and movement to report about PTT Global’s proposed $6 billion ethane cracker project coming to Belmont County, OH. The rumor is that PTT will announce a final investment decision (FID) in March–just two short months away. We wait with eager anticipation! However, in the meantime, the project appears to be proceeding full speed ahead. The latest evidence of that comes from a recent permit issued for the project by the Ohio Environmental Protection Agency (EPA). The permit allows the cracker plant to discharge wastewater (which is far different from drilling wastewater) into the Ohio River. The EPA notes, in granting the permit, that although the discharge may “result in changes from current water quality conditions” the discharge “cannot violate Ohio’s water quality standards that protect human health and the environment.” Next up is an air permit from the Ohio EPA, which the agency is currently working on. Here’s the deets on the wastewater permit just issued…
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    IECA Comes Out Swinging: Urges FERC to Approve 10 M-U Pipes NOW

    Industrial Energy Consumers of America (IECA) is the only national cross industry trade association dedicated to a broad array of energy/environment related issues. IECA is a 501(C)(6) nonprofit, member-led organization created to promote the interests of manufacturing companies for which the availability, use and cost of energy, power or feedstock play a significant role in their ability to compete in domestic and world markets. The IECA is using its considerable heft and going to bat for ten pipeline projects critical to manufacturers–projects that move Marcellus/Utica gas out of the northeast to other parts of the country. IECA’s “aggressive lobbying” is chiding FERC for moving too slowly in approving NEXUS Pipeline (DTE Energy & Spectra Energy), Mountaineer Xpress Pipeline (Columbia Gas Transmission), Leach Xpress Project (Columbia Gas Transmission), Eastern System Upgrade (Millennium Pipeline), Atlantic Coast Pipeline (Dominion), Atlantic Bridge Pipeline (Spectra Energy), Mountain Valley Pipeline (EQT & NextEra Energy), Susquehanna West Project (Kinder Morgan), Transco to Charleston Pipeline (Dominion), and VEPCO – Warren County Project (Columbia Gas Transmission). In each filing with FERC, the IECA asks FERC to ignore the shrill voices of “keep it in the ground” nincompoops. IECA says, “Manufacturing companies do not have an alternative for natural gas. Major manufacturing production processes and equipment are designed to specifically use natural gas. Nothing else can be substituted for natural gas. We cannot operate manufacturing facilities on electricity, especially solar or wind power. Coal and oil are also not an alternative for a variety of reasons, including EPA air regulations that limit their use.” Here is a brief description for each project, along with the IECA brief filed with FERC for each of those six projects…
    Read More “IECA Comes Out Swinging: Urges FERC to Approve 10 M-U Pipes NOW”

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    OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation”

    As we have pointed out in past articles, the electricity industry is a complicated industry, with some some power producers operating as “regulated” and some operating as “unregulated.” Regulated power producers have their rates, and rate of profit, set by government regulators–which limits profits but also guarantees profits. Unregulated power producers, on the other hand, do not have the safety net of the government forcing ratepayers to pony up–they operate in the free market, taking all of the risks–and reaping the rewards if those risks prove worthwhile. Many (most?) of the new natural gas-fired electric plants getting built, like those we have focused on in Ohio over the past several days (see List of 10 Utica-Powered Electric Plant Projects Coming to Ohio), are of the unregulated kind. Three power companies in Ohio that are regulated want to keep their monopoly on power and shut out these impertinent upstarts–by calling for re-regulation of the power industry. So-called re-regulation would kill proposed new natgas power plants and keep Ohioans locked into higher prices using existing (and in some cases crumbling) plants to generate electricity. Let’s name names for the sleazy companies trying to pull a fast one…
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    Proposed VA Law Would Protect Frack Chemical Trade Secrets

    We have to chuckle. It was just two months ago, in November 2016, that Virginia Gov. Terry McAuliffe approved changes to environmental regulations that requires “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning” (see Virginia Adopts New Frack Chemical Regs – Fracking to Begin?). In other words, drillers would have to disclose all fracking chemicals. While leftie Big Green groups love the new rules, the drilling industry set about to ensure trade secrets (exact combinations of chemicals) can’t be discovered by using Freedom of Information Act laws. Two new bills have already been introduced in the Virginia legislature this year–House Bill (HB) 1678 HB 1679 (copies below)–that will ensure trade secrets are kept safe. Big Green groups like the Southern Environmental Law Center are having a cow, claiming death and destruction await if the bills are passed…
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    Potter Twp Inches Closer to Approving Permits for Shell Cracker

    In December the Potter Township Board of Supervisors convened a public hearing on the proposed Shell ethane cracker plant–to be built in Potter Twp–that ended up going on for 10 hours (see Potter Twp Declines to Approve Permits for Shell Cracker, For Now). The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing the following night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors were still not ready to approve the permits and instead asked for more paperwork to be filed–by both Shell and the radical, anti-fossil fuel Big Green group Clean Air Council (from Philadelphia). The supervisors are certainly no rubber stamp for the cracker project. They are working hard to ensure area residents are protected when (not if) it gets built. But that’s not good enough for radical, anti-fossil fuel nutters who (irrationally) want nothing to do with natural gas. The supervisors held another meeting last night and a small group of antis attended with preprinted signs. One sign said “Deficient = DENY.” The other said, “Disaster Decision.” The first sign was flashed as supervisors tried to conduct their business. When the supervisors finally held a vote to ask the town attorney to draw up an official document to approve the cracker, the antis got mouthy (as they always do) and flashed the other sign. Amidst the shouting by antis, one supervisor asked for order in the room. One horse’s rear-end shouted, “Maybe the public wants disorder.” Here’s how it went last night…
    Read More “Potter Twp Inches Closer to Approving Permits for Shell Cracker”

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    EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine

    In October 2014 the Pennsylvania Dept. of Environmental Protection (DEP) fined PA driller EQT $4.53 million for a leaky wastewater impoundment in Tioga County, PA (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). While EQT did not say there wasn’t a problem with leaks at the site, they did say the way the DEP calculated the fine is unreasonable and arbitrary. In fact, EQT says the DEP levied the fine and took EQT to court because a few weeks prior EQT had sued the DEP over a different matter. EQT appealed the fine and the case to PA Supreme Court and a year later the high court handed EQT a “procedural victory” by saying EQT has a point about the manner in which the DEP is calculating the fine (see PA Supreme Court Gives EQT “Procedural Victory” in $4.5M Fine Case). The Supreme Court sent the case back to a lower court, PA Commonwealth Court, for follow up work. The work is done and EQT has won. A three-judge panel ruled that the method the DEP currently uses to assess fines–by how many days pollution lingers, instead of by how many days the initial release of pollution lasted–is not legal nor common sense. The judges said such a method in fining, “would result in potentially limitless continuing violations.” Under the old way of calculating fines, the DEP was considering upping the fine on EQT to an insane $157 million. Calculating it under the new way will mean a fine of around $120,000. This is a major victory for EQT and a reigning in of egregiously overzealous state regulators…
    Read More “EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine”

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    USFWS Pulls the Trigger and Lists Bumble Bee as Endangered

    Rusty patched bumble bee

    As the ignominious rule of Barack Hussein Obama draws to a close on Jan. 20, government agencies that are part of the Executive Branch, like the EPA and the U.S. Fish and Wildlife Service (USFWS), continue to issue “midnight” rulings and edicts that will have tragic consequences–until Trump arrives and reverses it (hard to do, but not impossible). We’ve written before about the thuggish nature of USFWS. They are a (police) force unto themselves, kind of like the old East German Stasi. The USFWS is responsible for recommending and listing varies species, empowered to do so under the Endangered Species Act (ESA). They have WAY too much power under dictatorial rulers like Obama. On September 22, 2016 the USFWS published a proposed rule to list the rusty patched bumble bee (Bombus affinis) as “endangered” under the 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). Well, with just a few days left in Obama’s reign of terror, they’ve pulled the trigger and done it. The USFWS has just listed the lowly bumble bee as endangered…
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    Maryland Democrat Lawmakers Continue to Torpedo Fracking

    Maryland is a lot like New York–populated with lefty liberals who love to tell other people how to live their lives. Maryland went through a years-long process, just like New York, and eventually released what would likely be the strictest drilling regulations in the nation, in late 2014 (see Fracking in Maryland (!) in 2015? Quite Possibly). On his way out of office, then-Gov. Martin O’Malley (a Democrat) published the regs and prepared the state to frack (see Maryland Gets Ready to Frack! Gov O’Malley Files New Regulations). But then the Maryland legislature passed a temporary moratorium which the newly elected Republican Governor, Larry Hogan, allowed to become law (see Maryland’s Pusillanimous Gov Allows Frack Moratorium to Become Law). Hogan and the Maryland Dept. of the Environment (MDE) returned with more tweaks which tightened the proposed regs even more–to the point no one would want to drill and frack anyway. But still the crazies objected (see Maryland Holds Hearings on Fracking, Crazies Turn Out to Complain). Maryland legislators, almost all of them liberal Democrats, want to ensure there is never any fracking in Maryland. So they’ve they’ve placed a “temporary” hold on new regulations that allow fracking. The new General Assembly kicked off its 2017 session yesterday, and while the House and Senate are quibbling over what to call it (a ban or a moratorium), one thing is clear: Maryland Democrat legislators are out to torpedo fracking in Maryland…
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    Obama’s DOE Secretary Politicizes Science on his Way Out the Door

    As is so often the case, when leftists/liberals claim they are doing one thing, it is, in fact, the opposite they are doing. Case in point: Obama’s Dept. of Energy (DOE) Secretary Ernest “hair” Moniz has released an 11th hour “scientific integrity” policy for the DOE that supposedly inoculates and protects “real” scientists who work for the agency from politics–allowing them to freely vomit their political, whoops, scientific views whenever and wherever they want, without fear of retribution or losing their job. What it does is to set up a situation where the incoming Trump Administration (specifically Rick Perry, the new DOE Secretary) are handcuffed to a bunch of leftists in the department–people who insist on the fairy tale of man-made global warming. If Perry wants to clean house, there will be weeping and wailing and gnashing of teeth, along with lawsuits that it violates agency policy. This is a typical sleazy move by the Obamadroids to dirty things up before they leave town–scorched earth policy. In case you think we’re engaging in hyperbole, the Union of (Liberal) Concerned Scientists are “thrilled” with the new policy. Need we say more?…
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    New Law Blocks Anti-Drilling Ballot Measures in Ohio

    Enough is enough. As MDN reported last June, anti-drilling zealots in Youngstown, OH filed a petition to place a frack ban resolution on the November ballot–for the 6th time (see Brain Dead: Youngstown Antis File Petition for 6th Frack Ban Vote). The petition held up, there were just enough signatures. And once again in November, as the five times that preceded it, Youngstown voters rejected the misnamed, so-called Community Bill of Rights ballot measure–yet another humiliating defeat for the PA-based Community Environmental Legal Defense Fund (CELDF) which is behind the measure (see Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time). The measure was voted down by an 11-point margin (i.e. landslide against it). The radicals of the CELDF are behind most, if not all, such measures throughout Ohio and Pennsylvania (see our CELDF stories here). Like the six times before, recalcitrant antis say they will try yet again, and keep trying. Except in Ohio they now won’t get that chance. Ohio legislators are heard the pleas of local municipalities that are spending big money (in legal fees) dealing with these patently illegal ballot measures. So the legislature passed House Bill (HB) 463 in December (full copy below)–a measure that says you can’t add a ballot measure (like home rule for oil and gas regulation) that expressly contradicts state law. Gov. John Kasich signed the bill on Jan. 4–meaning no more Youngstown ballot “Community Bill of Rights” measures on the ballot…
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    Bill Aims to Fix PA DEP Conflict of Interest re Penalty Revenue

    PA Sen. Scott Hutchinson

    Pennsylvania State Senator Scott Hutchinson says the PA Dept. of Environmental Protection (DEP) has a built-in conflict of interest. The DEP has broad powers of investigating and assessing fines and penalties on the oil and gas industry for violations of the rules the DEP itself makes. The icing on the cake is that the DEP gets to keep the money it levies in fines and penalties. Hmmm. You make up the rules, you get to aggressively enforce the rules, and then you get to keep the money that results. What’s wrong with this picture? Hutchinson says if you put someone else (the PA legislature, in this case) in charge of the money raised from the fines and penalties, that makes the situation a little more fair and balanced. We couldn’t agree more…
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    Williams Letter to FERC: Please Hurry Up Atlantic Sunrise Cert

    As MDN reported last week, on the last business day of 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable final environmental impact statement (EIS) for one of the major pipeline projects in the Marcellus/Utica: the $3 billion Williams Atlantic Sunrise Pipeline project (see FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity). What’s left to do now? FERC must issue the final certificate that allows the company to start the backhoes and begin construction. Williams (under the subsidiary name of the Transco pipeline), sent a letter to FERC on Jan. 5 requesting FERC to issue that certificate no later than Feb. 16. Why? To “begin preparations to finalize federal and state permits as well as plan for construction to comply with restrictive environmental windows, specifically tree clearing within key habitat areas and installation through certain water bodies.” Williams/Transco has a lot to do in a short period of time if they are to keep this project on track for a mid-2018 launch. If they get the final certificate by mid-February they can clear trees by the end of the month and get ready for initial construction this summer. Williams plans to have at least some of the pipeline project up and running by the end of this year! And the rest by summer of 2018. So the letter (full copy below) is a “pretty please, would you hurry it up” request…
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    Eastern Shore Files with FERC to Expand Delmarva Pipeline

    In July 2016 MDN told you about a smallish, but important pipeline project in the Delmarva Peninsula area, which includes most of Delaware and portions of Maryland and Virginia. Eastern Shore Natural Gas’ 2017 System Expansion project will bring new sources of natgas from an interconnection Eastern Shore has with the mighty TETCo (Texas Eastern Company) pipeline near Philadelphia (see PA/MD/DE Pipeline Project Heats Up with Open House Mtgs This Week). Although Eastern Shore, a subsidiary of Chesapeake Utilities Corporation, ran a non-binding open season in 2015, and although they pre-filed for the expansion project in May 2016, they have only just filed a full, official application with the Federal Energy Regulatory Commission (FERC). Originally the project was slated to run ~33 miles of pipeline looping in PA, MD and DE. That number seems to have gone down, to 23 miles. Compressor upgrades and other pipeline will also be added. Chesapeake Utilities, the parent company, calls the project the single largest such expansion in Eastern Shore’s history, a project that will bump up gas delivery volumes by 25%…
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