Regulation

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    FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects

    Yesterday the Federal Energy Regulatory Commission (FERC) voted to approve and issue a certificate to Columbia Pipeine’s Leach XPress and Rayne XPress pipeline projects. This is fantastic news for the Marcellus/Utica region. MDN has covered these projects from their beginning. In August 2014 Columbia, then a subsidiary of Nisource, committed to building the two projects that will flow Marcellus/Utica gas to the Gulf Coast (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). The Leach XPress project involves construction of approximately 160 miles of natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle, flowing 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name). Rayne XPress works hand in glove with Leach. There is an existing natgas pipeline from Leach, KY all the way to the Louisiana Gulf Coast. That pipeline is called the Rayne, for Rayne, LA. The Rayne Xpress project will beef up the Rayne pipeline with new compressor stations to add an additional 1 Bcf per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast. It wouldn’t make sense to approve one without the other, and yesterday FERC approved both…
    Read More “FERC Approves $1.8B Leach & Rayne XPress Pipeline Projects”

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    Northeastern PA Counties Explore Alliance to Pass Royalty Reform

    One of the issues that isn’t going away is the demand by landowners in some Pennsylvania counties, like Bradford, for lawmakers in the state to pass a bill that guarantees them what they believe they are already guaranteed–a 12.5% minimum royalty, based on a 1979 law that states they should get such a royalty. We’ve extensively covered what we call a civil war between two parties who are otherwise friendly toward each other–landowners and shale drillers. Last year the issue came to a head with House Bill (HB) 1391 (see our list of stories here). In a nutshell, landowners say Chesapeake Energy and some other drillers are taking post-production deductions out of landowners’ royalty checks, resulting in royalty payments far below 12.5%. In some cases landowners are receiving bills for money owed to the driller–after the driller pulled the gas out of the ground! Who in their right minds leases land for drilling so they can PAY the driller! It is an outrage and landowners want it stopped. Drillers, on the other hand, say you can’t just change contracts after they’ve been signed, punishing the entire industry for the bad actions of a few. Drillers say the proper response is for landowners to sue the bad apples. Frankly, it’s all a mess. The new news is that landowners from Bradford and several other northeastern PA counties, tired of being outmaneuvered by drillers, are actively talking about forming an alliance to try and garner enough support in Harrisburg to get a bill like HB 1391 passed this year…
    Read More “Northeastern PA Counties Explore Alliance to Pass Royalty Reform”

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    Antis Worried Trump Will Stop Delaware River Basin Conservation Act

    The (for now) taxpayer funded PBS StateImpact Pennsylvania is so “in the tank” and biased for radical environmentalism, they are a reliable mouthpiece for Big Green. Want to know what Big Green thinks? Just read StateImpact. Which is how we know Big Green is now very worried that the incoming Trump Administration will stop implementation of the ill-conceived Delaware River Basin Conservation Act. We wrote about the Act when it was still just a bill (see New Bill Aims to Keep Drilling/Pipelines Out of Dela. River Basin). The Act, which was passed by a spineless Republican Congress in December, vests the already out-of-control U.S. Fish and Wildlife Service (USFWS) with power and money to “identify and implement conservation activities” in the Delaware River Basin. The tip-off that it’s anti-drilling is that it was pushed and promoted by the odious William Penn Foundation as well as the Delaware River Basin Commission. USFWS is an Executive Branch (i.e. now Trump Administration) agency, so Trump can decide to drag his heels on implementing this disastrous legislation. Hey libs, how does it feel to be out of power? The thought that Trump will deny them their precious money to make mischief has them worried, as evidenced by the propagandists at StateImpact…
    Read More “Antis Worried Trump Will Stop Delaware River Basin Conservation Act”

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    More on PA DEP’s Onerous New Methane Capture 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, are prompted by bullying from the federal Environmental Protection Agency, an agency which is about to get gutted (see Master Stroke: Trump Selects OK AG Pruitt to Lead EPA). That hasn’t stopped Gov. Wolf’s DEP from plowing forward with new rules (copies here). We spotted an Associated Press article that highlights some of the aspects of the proposed new methane capture rules…
    Read More “More on PA DEP’s Onerous New Methane Capture Regs”

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    PA DEP Rejects Revisions to Regs re Drilling Near Coal Mines

    Here’s a story we admittedly don’t know much about, a story that kind of came out of left field. It may affect some shale drillers in southwest PA. Sometimes drillers want to lease and drill under coal mines. Since coal mines sink large holes in the ground, there are existing guidelines in place for how closely an oil/gas well can be drilled on or under a coal mine–guidelines put in place in 1957. As a result of legislation passed in 2011 called Act 2, a review was conducted to see if the standards for oil/gas drilling near coal mines might be modified–we’re assuming “relaxed,” allowing such drilling to happen in conditions not currently allowed. A column of rock called a pillar needs to be of a certain size/width in order for drilling to take place. An independent study to review the size of pillars, called “Gas Well Pillar Study Update, PO 4300311202 and 4300400813,” was completed in March 2016. The PA Dept. of Environmental Protection (DEP) recently completed its own review of that study (copy of the DEP review below) and has rejected changing existing 1957 standards for pillar dimensions. Yeah, kind of technical. Short version: DEP is keeping super-strict standards in place claiming it’s safer for coal miners, limiting options for shale drilling under some coal mines…
    Read More “PA DEP Rejects Revisions to Regs re Drilling Near Coal Mines”

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    Potter Twp (Finally) Approves Permit for Shell Ethane 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. Potter Township 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. Last week the supervisors held yet another meeting and the antis behaved like they always do–like petulant children, hollering and booing and making a$$es of themselves. One supervisor said he was “appalled” by the conduct of the crowd at last week’s meeting. That’s all in the rearview mirror now. Last night Potter Township held another meeting and yes, they finally voted to grant the cracker project the necessary town permits to proceed. Oh! The crowd last night? While it had a few crazies, it was packed with local residents who support the project. Nice to see the good guys come out in force to counteract the nutters…
    Read More “Potter Twp (Finally) Approves Permit for Shell Ethane Cracker”

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    PA Senator Reintroducing Bill to Reduce Marcellus Waste Reporting

    PA State Sen. Elder Vogel

    On Tuesday, PA State Sen. Elder Vogel (Republican from Beaver, PA) circulated a co-sponsor memo that states his intent to re-introduce a bill that will remove some of the hassles drillers now face with the recent adoption of new Marcellus drilling regulations. Specifically, Vogel wants to change the DEP (Dept. of Environmental Protection) regulation requirement that drillers must file paperwork to report the amount and disposition of drilling waste–which would include wastewater and drill cuttings–from monthly to every six months. Every gallon of frack and produced water that comes out of a well, and every square inch of leftover rock and dirt, must be tracked and a report filed. The new Chapter 78a drilling regulations adopted by the DEP requires monthly reports to be filled out–a virtual blizzard of paperwork. Vogel wants to make it more manageable with biennial reports instead…
    Read More “PA Senator Reintroducing Bill to Reduce Marcellus Waste Reporting”

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    Scott Pruitt Bested Democrat Hacks at EPA Confirmation Hearing

    Scott Pruitt – Next EPA Administrator

    Oklahoma Attorney General (AG) Scott Pruitt, who is Trump’s pick to drain the swamp at the Environmental Protection Agency, was on the hot seat yesterday on Capitol Hill. Confirmation hearings were held and Pruitt was grilled for seven hours in three different rounds of questioning. This man is a true gem. During the hearing he said this: “Process matters, rule of law matters, federalism matters. Those issues matter because Congress has said so. It is Congress that gives authority to the EPA. The EPA is an administrative agency; it is not a legislative body.” What a breath of fresh, unpolluted air! The Democrats on the Senate Committee on Environment and Public Works did their best to rattle Pruitt, but he remained calm. Crazie Bernie Sanders was among those who behaved like jackasses–asking questions and not letting Pruitt finish answering before they would interrupt and ask more questions. The Democrats’ behavior was disgraceful and certainly not worthy of someone holding the office of Senator. Here’s a review of what happened, what was said, and a copy of Pruitt’s excellent opening remarks…
    Read More “Scott Pruitt Bested Democrat Hacks at EPA Confirmation Hearing”

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    PA Gov Wolf Signals his Support for Mariner East 2 Pipeline

    PA Gov. Tom Wolf

    PA Gov. Tom Wolf has been, to be frank, a disaster as a governor. On many issues. But the issue that primarily concerns us is the oil and gas industry. Wolf will soon introduce his third budget and for a third straight year he will call for a Marcellus-killing severance tax. He still owes the teachers unions payback for supporting him and getting him elected. Wolf pretty much screwed up the Dept. of Environmental Protection (DEP) when he installed an anti-driller as its head, John Quigley. He later fired Quigley when it was discovered Quigley was colluding with Big Green groups. Given Wolf’s treatment of the industry, it was with some surprise to read that Wolf, in comments made to a Chamber of Commerce group last week, mouthed his support for the Mariner East 2 NGL (natural gas liquids) pipeline that will traverse the state. The pipeline is opposed by a few anti-fossil fuel zealots and some townships along its route. The DEP is reviewing permits for the project and the hints coming from Wolf and the DEP are that the project will receive its approvals soon. Which is really good news…
    Read More “PA Gov Wolf Signals his Support for Mariner East 2 Pipeline”

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    Kinder Morgan Asks FERC to Approve Orion Pipe Project by Jan 31

    In October 2015, Kinder Morgan’s Tennessee Gas Pipeline (TGP) filed their official, full application with the Federal Energy Regulatory Commission (FERC) seeking approval for their Orion Project (see Tennessee Gas Pipeline Files PA Orion Project with FERC). The project will cost $143 million and construct 13 miles of “looping” pipeline in Pike and Wayne counties, Pennsylvania. The project will boost capacity on the TGP by another 135 million cubic feet per day (MMcf/d), allowing TGP to pump more Marcellus Shale gas to Mid-Atlantic and New England states. According to the original plan, the TGP Orion upgrade will be complete and in-service by June 2018. They still want to meet that timetable–but can’t unless FERC gets off their rear-ends and approves the project. So TGP filed an official request with FERC to get Orion approved by January 31st. Otherwise, all bets are off for a June 2018 in-service date…
    Read More “Kinder Morgan Asks FERC to Approve Orion Pipe Project by Jan 31”

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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…
    Read More “Rice Energy Sues West Pike Run Twp re Compressor Station Approval”

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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…
    Read More “Ohio EPA Issues Wastewater Discharge Permit for PTT Ethane Cracker”

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