Regulation

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    FERC Commissioner Resigns Threatening Major M-U Pipeline Projects

    FERC Chairman Norman Bay

    Last Thursday, Norman Bay, one of three Federal Energy Regulatory (FERC) Commissioners, announced he would resign effective Feb. 3–this Friday. His unexpected resignation directly threatens a number of critical pipeline projects in the Marcellus/Utica. It appears to us to be a revenge resignation–an attempt to screw the Trump Administration. Bay is a Democrat. In fact, all three sitting FERC Commissioners are Democrats. FERC is supposed to have five Commissioners–but there have been two empty slots since last September when Republican Tony Clark left. Last week President Donald Trump announced he would elevate sitting Commissioner Cheryl LaFleur to become Chairman of the Commission, replacing Bay in that role. It should be noted LaFleur has been on the Commission since 2010 and has been, at various times, Acting Chairman and full Chairman. In fact, Norm Bay was elevated by Obama to become Chairman, replacing LaFleur in that role. Did LaFluer leave in a huff? No. She stayed to do the important work of the Commission. Now that the roles are reversed, Bay seems to be bent on revenge against Trump–placing important pipeline projects in danger of not getting timely approvals. It takes three members to have a quorum, to approve projects. Some (including THE Delaware Riverkeeper) are pushing for a block on new appointments to FERC–meaning FERC’s work stops cold. Three critically urgent M-U projects have asked FERC to approve their projects THIS WEEK, before Bay leaves: NEXUS (Spectra Energy), Leach XPress (Columbia Pipeline/TransCanada), and Atlantic Sunrise (Williams)…
    Read More “FERC Commissioner Resigns Threatening Major M-U Pipeline Projects”

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    Hope: Atlantic Coast Pipe on Trump List of High Priority Projects

    Can you smell it? We sure can. It’s called hope. Not even a full week in the new Trump Administration, hope can be found everywhere. Liberal Democrats still aren’t sure what hit them. Let us help. It’s competence. It’s someone who gives a damn about the average American. It’s someone who believes the country, as it was founded, is the best country in the world. Donald J. Trump. He’s blown into Washington, DC like a hurricane and things are changing so fast most of us can’t keep up. Case in point: On Tuesday, Trump’s second full day on the job (last Friday and the weekend don’t count), Trump signed an Executive Order “Expediting Environmental Reviews and Approvals For High Priority Infrastructure Projects.” What are ‘high priority infrastructure projects’? A document has leaked, originally compiled by Trump’s transition team, of 50 ‘Emergency & National Security Projects’ that are infrastructure projects–projects the Trump Administration believes should be worked on immediately. Project #20 in the list is Dominion’s Atlantic Coast Pipeline (ACP), a $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Number 20! How cool is that? No, this doesn’t mean Trump can simply order it approved like some sovereign or tinpot dictator. Our rules and laws must be followed. What it does mean is that the Federal Energy Regulatory Commission (FERC) will now receive enormous pressure to quit dragging its feet and to “fast track” the review for ACP. It means hope on now on the horizon…
    Read More “Hope: Atlantic Coast Pipe on Trump List of High Priority Projects”

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    PA Town Grapples with Setbacks – from Bore Hole or Edge of Pad?

    The issue of “setbacks” has always been a contentious issue when it comes to oil and gas drilling. A setback is the distance from a well to nearby structures–like water wells, homes, schools, whatever. In Pennsylvania the state law requires a minimum of 500 feet between a well and nearby structures. But here’s the thing: Do you measure the distance (as drillers maintain) from the bore hole drilled into the ground? Or from the edge of the well pad? A pad is typically 3-5 acres, and if you measure from the edge of the pad, the “actual” distance from the well to a nearby structure may be 1,000 feet instead of 500 feet. Some argue that measuring from the edge of the pad makes more sense–to protect nearby residents from noise, lights, air emissions, etc. But drillers in some locations are hamstrung, especially if the the location where they drill is on a slope or other tough terrain. Measuring from the edge of the pad may mean not drilling at all. It is that very issue now being debated in Murrysville, in Westmoreland County, PA (near Pittsburgh). It is a wisdom of Solomon kind of issue…
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    Waters of U.S. Case on Hold Until U.S. Supreme Court Weighs In

    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 a 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 muddle puddles (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). Right after that, 21 U.S. Senators and 67 House of Representatives members (Congresspersons) filed a “friend of the court” (amicus) brief urging the court to vacate the EPA’s WOTUS rule (see 21 Senators, 67 Representatives Join Case Against EPA WOTUS Rule). However, the 6th Circuit Court hearing the case has temporarily stopped the case, until the U.S. Supreme Court decides if the 6th Circuit has the right to be the court hearing the case…
    Read More “Waters of U.S. Case on Hold Until U.S. Supreme Court Weighs In”

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    FERC Approves Atlantic Bridge Project for New England/Canada

    Although antis have tried to block major pipeline upgrades in the northeast/New England region, Spectra Energy continues to have success with building and completing its projects. Recently Spectra’s Algonquin Incremental Market (AIM) project, which built ~37 miles of new pipeline and half a dozen new compressor stations along the Alogonquin Gas Transmission pipeline, went into service (see New England Gets Small Increase in NatGas Pipeline Capacity). AIM is now delivering an extra 342 million cubic feet per day (MMcf/d) of Marcellus/Utica natural gas to New England. AIM is part of a larger plan from Spectra called the Access Northeast project to combine several pipeline systems to send gas into New England and all the way to Nova Scotia, Canada. Access Northeast has been frustrated by regulators in New England (see Spectra Energy Puts Access Northeast Pipe to New England on Hold). However, another important piece of the larger puzzle has now fallen into place. The Federal Energy Regulatory Commission (FERC) has just approved another piece of Access Northeast, called Atlantic Bridge. FERC previously granted the project a favorable Environmental Assessment last May (see Critical Project for Canadian LNG Exports Gets Favorable FERC Review). With certificates in hand, Spectra Energy can now start the bulldozers and begin construction. What does Atlantic Bridge entail? It beefs up capacity along the Algonquin and Spectra’s Maritimes & Northeast pipeline to carry more Marcellus/Utica gas into New England and now all the way to Nova Scotia…
    Read More “FERC Approves Atlantic Bridge Project for New England/Canada”

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    FERC Delay Pushes Back NFG’s Northern Access Pipeline Project

    National Fuel Gas Company (NFG), the Buffalo-based utility giant with both a drilling subsidiary (Seneca Resources) and a midstream/pipeline subsidiary (Empire Pipeline) filed an application with the Federal Energy Regulatory Commission (FERC) in March 2015 for a pipeline project they call Northern Access 2016 (later renamed to simply Northern Access Project, dropping the “2016” part). The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton (see NFG’s Marcellus Pipeline from NWPA to NY Hits Resistence). In July 2016, FERC issued a favorable Environmental Assessment, paving the path for full approval (see NFG’s Northern Access Pipeline Gets Favorable FERC Review). NFG had hoped to have the project done and in-service by November of this year. However, due to foot-dragging by FERC, NFG has just announced a revision. They now say the project can’t get completed until “the second quarter of the Company’s 2018 fiscal year.” NFG doesn’t operate on a calendar year for reporting, they’re a quarter ahead. So the Company’s 2Q18 means 1Q18 for everyone else. Translation: NFG hopes to have it built and in-service by March 2018. In addition to the “bad news” of the delay, NFG sprinkled in some good news about production in 4Q16: due to an increase in Marcellus production, NFG’s calendar 4Q16 production (for subsidiary Seneca Resources) was up 16% over the same period in 2015…
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    PA Royalty Bills Approved by Senate Panel, Sponsor Chides House

    Yesterday a Pennsylvania State Senate panel met to discuss two bills that would help landowners in their quest for more visibility into how royalties are calculated–and what kinds of expenses are deducted (see 2 Royalty Bills Focus of PA Senate Hearing Today). As we said yesterday, Senate Bill (SB) 138 will allow landowners the right to review drilling company records to verify proper royalty payment. It also requires drillers to pay royalties within 90 days of production. SB 139 prohibits drillers from “retaliating” against a landowner who questions royalty payments by canceling the lease or stopping drilling activity. Both bills were unanimously approved by the Senate panel and will go to the full Senate for a vote. However, as the bill’s prime sponsor Sen. Gene Yaw indicated, the Senate is not the problem. Last session the same thing happened–speedy passage by the Senate. Then the bills got bogged down in the PA House because they were attached to another bill that guarantees a minimum royalty of 12.5% regardless of post-production costs. That bill has proven toxic–vigorously opposed by the drilling industry. Sen. Yaw’s not-so-subtle message to the House: Don’t repeat the same mistake this year. Let these bills stand on their own…
    Read More “PA Royalty Bills Approved by Senate Panel, Sponsor Chides House”

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    Large Crowd Turns Out For/Against 22-Mile Pipeline in NJ Scrub Pines

    On Monday the New Jersey Pinelands Commission, which oversees a stand of scrub pines in South Jersey, held a public hearing to listen to comments on a plan to build a 22-mile pipeline through the scrub pines, burying it alongside the road so as to not disturb any spindly trees. The pipeline will supply clean-burning natural gas to a power plant currently fed by coal, cleaning up the air and lowering CO2 emissions. But dunderheads in the area are still opposed–largely incited by radical environmental groups like the NJ Sierra Club and the odious Food & Water Watch, who spread lies about the project. So many people turned up for the meeting, it maxed out the meeting room of 260 and some had to wait outside in the rain (which didn’t sit well with the pampered snowflakes). Predictably many who showed up wanted to go on record as opposed to the project. Isn’t that always the case? It’s easy to motivate people to attend a meeting when they’re against something–much harder to attract people who support something. At any rate, the surprising thing about yesterday’s meeting were the many people who turned out to support the pipeline. Also predictable, at least one anti (from the odious Food & Water Watch) couldn’t contain herself and had to be ejected for disrupting the meeting…
    Read More “Large Crowd Turns Out For/Against 22-Mile Pipeline in NJ Scrub Pines”

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    Trump Signs Executives Orders to Restart DAPL, Keystone XL Pipes

    President Trump is wasting no time in correcting the mistakes of the Obama Administration. Yesterday Trump signed a pair of Executive Orders meant to restart and advance the XL Keystone Pipeline and the Dakota Access Pipeline projects. The orders include a requirement that the pipes manufactured for the projects be manufactured right here at home, in the U.S. The orders in no way require the projects to get completed, they are simply meant to help clear regulatory hurdles so the projects’ builders can get moving again. Predictably the action is making radical fossil fuel haters apoplectic…
    Read More “Trump Signs Executives Orders to Restart DAPL, Keystone XL Pipes”

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    FERC Delays PennEast Pipe 3rd Time, PennEast Spins as ‘Good News’

    PennEast Pipeline is a very important $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. It will feed local utilities and power generation plants along its route. In April 2016 the Federal Energy Regulatory Commission (FERC), which oversees permitting for the pipeline, told PennEast the agency would extend the amount of time they are taking until December 2016, rather than the original target of August, to complete their environmental review (see PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?). It was (for us) a small red flag. Hey, it happens. Projects get delayed because regulatory agencies get bogged down. But then it happened again: FERC told PennEast they would once again move the goal posts and delay the final environmental review from December 2016 to February 2017 (see FERC Delays PennEast Pipeline Final Review – Again). Hmmm. Bigger red flag. Now FERC is doing it for a third time, which is a huge red flag in our book. FERC issued a statement on Friday to say the final environmental review now won’t happen until April. What’s going on? And why is PennEast once again spinning this as some sort of “good news”?…
    Read More “FERC Delays PennEast Pipe 3rd Time, PennEast Spins as ‘Good News’”

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    2 Royalty Bills Focus of PA Senate Hearing Today

    PA Sen. Gene Yaw

    Last week MDN brought you the news that several northeastern Pennsylvania counties are investigating an alliance to push for passage of a bill like last session’s House Bill (HB) 1391 to guarantee landowners receive a minimum 12.5% royalty regardless of post-production costs (see Northeastern PA Counties Explore Alliance to Pass Royalty Reform). However, landowners and those who support them in the PA legislature are not pinning all hopes on a guaranteed minimum royalty bill. Also proposed in the last session (2015/2016) were two bills meant to greatly assist landowners in their quest to monitor royalty payments and how they are calculated. In January 2015 (almost exactly two years ago) PA Senator Gene Yaw, who represents several counties in northeast PA, re-introduced Senate Bills (SB) 147 & 148 (see PA Senate Reintroduces Two Marcellus Royalty Bills, SB 147 & 148). “Re-introduced” in 2015 means both bills were introduced in the previous session (in 2013/2014). SB 147 would have allowed landowners the right to review drilling company records to verify proper royalty payment. It would also have required drillers to pay royalties within 90 days of production. SB 148 prohibits drillers from “retaliating” against a landowner who questions royalty payments by canceling the lease or stopping drilling activity. Both bills were embraced by the Pennsylvania chapter of the National Association of Royalty Owners (NARO). They both passed the Senate and stalled in the House. Now, for the third time (going on the sixth year) Sen. Yaw has re-introduced both bills again. This time they are called SB 138 & 139 (full copies below). Sen. Yaw isn’t wasting any time–he’s holding a hearing today to discuss both bills. Will this time be successful?…
    Read More “2 Royalty Bills Focus of PA Senate Hearing Today”

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    PHMSA Publishes New Pipeline Rule on Faster Accident Reporting

    Yesterday the U.S. Pipeline & Hazardous Materials Safety Administration (PHMSA) published a final “rule” (actually 31 pages of rules, which we’ve included below) in the Federal Register, which will become law (i.e. official regulation) on March 24th. The new “rule” requires pipeline operators to report incidents or accidents by phone within one hour of when they become aware of the incident/accident. It also steps up drug and alcohol testing requirements for workers. Here’s the latest in unlegislated laws to come down from on (Washington, DC) high…
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    Trump “America First” Energy Plan Posted on WH Website Day 1

    Well that didn’t take long. Immediately, as soon as Donald J. Trump was sworn into office on Friday at noon, key changes were made to the official White House website. Among them: the page touting man-made global warming nonsense (i.e. “climate change”) came down, and up went Trump’s “America First Energy Plan” instead. Trump’s plan? Support shale, dump Obama’s so-called climate plan, and refocus the EPA. Slap me! Am I dreaming? Will I wake up and find Lord Obama is still in charge? Or worse yet, that Hillary is President? No! Trump won, and the best possible outcome is now happening for American energy (including shale energy) and the American people. A true “all of the above” strategy from Team Trump. Below is a copy of Trump’s energy plan and some of the hysterical reaction by radical environmentalists…
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    Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay

    MDN has 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. Unfortunately the very worthy project is marred by corruption inside the Cuomo Administration (see NY NatGas-Fired Electric Plant an Inside Job for Corrupt Cuomo Aide). However, construction continues and the plant will get built. 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–no doubt at Cuomo’s direction. 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 has just sued the DEC to make it happen…
    Read More “Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay”

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    Meeting Today re NJ Pipeline Slated to Run Through 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 in November 2016 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). The full Commission is now ready to act. Today the Commission is holding a hearing on the project and perhaps as soon as today the Commission will vote–in all likelihood to officially approve it…
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    Debate & Misinformation re Frack Chemical Disclosure Rages in VA

    Two weeks ago 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.” Ah, sorry to burst the anti bubble, but 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…
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