Regulation

Dominion Energy | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Statewide WV | West Virginia

FERC Grants Dominion Clarington Project a 1-Year Extension
July 27, 2016July 27, 2016

In June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The Clarington project, costing a modest $76.5 million, will allow Dominion to provide 250,000 dekatherms (Dth) per day of firm transportation service for CNX Gas, otherwise known as CONSOL Energy. Last August, FERC approved Dominion’s request (see FERC Approves Dominion WV/OH Compressor Project, Rips Anti Group). FERC gave Dominion a year to complete the project, but Dominion filed a request last Friday requesting more time. FERC agreed and has extended the project completion date an extra year…
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Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Constitution Pipeline Requests 2-Year Extension from FERC
July 26, 2016July 26, 2016

Constitution Pipeline map – click for larger version

For years now, MDN has tracked the ongoing sad, maddening, tragic saga of the Constitution Pipeline–a $683 million, 124-mile pipeline due to run from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas (see our stories here). The pipeline is full reviewed and authorized by the Federal Energy Regulatory Commission–it has been since 2014. The only thing left is a permit from the New York State Dept. of Environmental Conservation (DEC) to issue stream crossing permits. The DEC has, however, been corrupted by our corrupt governor, Andrew Cuomo. The Constitution worked with the DEC to meet ALL of their requirements, and in fact did meet all of their requirements, and in the end Cuomo said “nyet” and the servile “leaders” at the DEC did their master’s bidding and turned down the Constitution (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). So the Constitution sued (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). However, the FERC clock is ticking. The Constitution has until the end of this year to get the pipeline built. With the glacial pace of the courts, that ain’t gonna happen. So the Constitution (i.e. Williams), last Friday, filed a request with FERC to extend the certificate to build by an additional two years…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

Major Step Forward – FERC Issues Favorable DEIS for PennEast Pipe
July 25, 2016July 25, 2016

PennEast Pipeline Route Map – click for larger version

THE Delaware Riverkeeper, Maya van Rossum, is “spitting” mad. Why? Because the Federal Energy Regulatory Commission (FERC) has signaled it will approve the PennEast Pipeline, a $1.2 billion, 119-mile desperately-needed natural gas pipeline from Luzerne County, PA to Mercer County, NJ that will haul Marcellus Shale gas from northern PA to markets in southeastern PA and NJ. On Friday FERC issued a Draft Environmental Impact Statement (DEIS) that finds while there are a few things to fix in the PennEast plan before the pipeline gets built, they are fixable and the pipeline won’t have significant environmental impacts. van Rossum, upon learning of the favorable DEIS, said “The deadline for comments is an offensive abuse of power and spit in the face of all the communities that will be so deeply harmed by this project.” Needless to say, FERC’s decision put a smile on our face. PennEast calls it a “major step forward.” Indeed. It all but assures that this project will get approved and built…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Bill Tweaking Article 78a Shale Drilling Regs Dies in PA House
July 25, 2016July 25, 2016

In June Pennsylvania Gov. Tom Wolf was forced to accept half a loaf–he agreed to reject new drilling regulations for the conventional drilling industry in the state, if lawmakers would allow his administration’s rework of shale drilling regulations to take effect (see PA Gov Wolf “Eager” to Sign Drilling Law Forced Down His Throat). So we got a new set of drilling rules for shale, referred to as Article 78a, while the rules for conventional (Article 78) will get yet another revision. The Marcellus industry didn’t oppose the reworked rules in part because they thought they could tweak some of the more onerous aspects of them. Two weeks ago the PA Senate passed Senate Bill (SB) 1229, making modifications to three aspects of Article 78a creating the most fuss with shale drillers (see PA Senate Approves Bill Tweaking DEP Chapter 78a Shale Regs). As we noted at the time, Gov. Wolf threatened to veto the legislation. Whether Wolf’s toothless threat mattered or not we don’t know, but we do know that late last week the House failed to pass the bill and left town for summer vacation. That is, SB 1229 is dead…
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Chesapeake Utilities | Energy Services | Industrywide Issues | Pipelines | Regulation

600 Days & Counting to Build a 7-Mile NatGas Pipeline in PA-DE
July 22, 2016July 22, 2016

A Bloomberg article takes a look at the ongoing and unnecessary delays companies face in building new pipelines–particularly in the Marcellus/Utica region. The Eastern Shore Natural Gas (ESNG) company, serving the Delmarva Peninsula (includes most of Delaware and portions of Maryland and Virginia), filed an application to build a measly 7 miles on Nov. 21, 2014. The $29.8 million pipeline project, called the White Oak Mainline Expansion Project, will “ease bottlenecks in transporting gas from the Marcellus shale formation” from Pennsylvania into Delaware. Why the horrific delays? Mostly because of opposition from insane anti-fossil fuelers who flood the Federal Energy Regulatory Commission (FERC) with comments, protest meetings, launch lawsuits and in general attempt to slow or stop FERC authorizations. ESNG’s projects aren’t the only ones stretching out to years before authorization is granted…
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Industrywide Issues | Pipelines | Regulation

Guidelines for Using Drones in the O&G Industry
July 22, 2016July 22, 2016

On July 13, 2016, Congress passed legislation to allow limited drone use by the energy industry as part of the reauthorization bill for the Federal Aviation Administration (see Congress Approves Unmanned Drone Use in O&G Industry). The legislation defines drones as “small unmanned aircraft” weighing less than 55 pounds. Pipeline companies, in particular, can make use of drones with cameras to fly along pipeline routes to spot hazards or potential problems. And they can do it much more quickly and efficiently than having boots on the ground. The legal beagles at top energy law firm Babst Calland have written a “Pipeline Safety Alert” briefing paper that tackles the updates to the FAA regs allowing drones in the oil and gas industry–what’s allowed, and what isn’t. If you’re a midstreamer or even a driller, it’s worth your time to read this short paper…
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Hydraulic Fracturing | Industrywide Issues | Regulation

Fracking Legend Harold Hamm – Next Secretary of Energy?
July 22, 2016July 22, 2016

Harold Hamm

Harold Hamm is the legendary CEO of Continental Resources. Hamm is, along with George Mitchell, Aubrey McClendon, and a few others, one of the original pioneers who figured out how to combine fracking with horizontal drilling to access previously-trapped oil in shale deposits. Hamm’s claim to fame is drilling in the mighty Bakken oil fields of North Dakota. Harold Hamm is, by all accounts, one of the biggest frackers in the world. Hamm addressed the Republican National Convention this week, at the request and invitation of Republican nominee for President, Donald Trump. We are super excited to fan the flames of the rumor mill. Hamm is a leading contender to be the Secretary of the Dept. of Energy under a President Trump. What a coup! Can you imagine having someone who “gets it” with respect to the energy industry guiding the agency tasked with developing our national energy policy? Someone like Hamm who would have the President’s ear? This is VERY exciting…
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Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Spectra Energy | Westmoreland County

Feds Find More Corrosion, Issue Order re Exploded TETCO Pipe in PA
July 21, 2016July 21, 2016

An update on Spectra Energy’s Texas Eastern Transmission’s (TETCO) “Delmont Line 27” which exploded in Westmoreland County, PA on April 29 (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). We previously told you that not only was Line 27 out of commission, so too were three other pipelines running through the same corridor, meaning 1 billion cubic feet of natural gas per day is not reaching certain mid-Atlantic markets (see Update on Spectra Pipeline Explosion Near Pittsburgh). The early evidence points to corrosion along welded seams, although the jury is still out and the exact cause may not be known for months. One of the four lines that was offline (Line 19) was examined and certified by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in early May to go back online (see TETCO Pipeline Up & Running Post-Explosion; Antis Exploit Accident). However, the other three lines have remained idle pending further investigation and won’t be online again until at least November (see Ruptured TETCO Pipeline in PA Offline Until November). In an order issued on Tuesday, federal regulators with the Pipeline and Hazardous Materials Safety Administration (PHMSA) are requiring Spectra Energy to perform more testing and take corrective actions on the remaining three lines. Although the cause of the explosion is still not 100% verified, it’s still thought to be corrosion around welded pipe joints, i.e. bad pipe tape…
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Energy Services | Industrywide Issues | Lackawanna County | Lebanon County | Monroe County | Pennsylvania | Pipelines | Regulation | Transco | Williams

PA Game Commission Cuts ROW Deal with Atlantic Sunrise Pipeline
July 21, 2016July 21, 2016

Atlantic Sunrise Pipeline map – click for larger version

More progress for the Williams Atlantic Sunrise Pipeline project. Atlantic Sunrise is a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. It is a much-needed pipeline to move more Marcellus gas south, to new markets. The progress is this: the Pennsylvania Game Commission has cut a right-of-way deal to allow the pipeline to traverse game lands in northern Lebanon County–including a crossing of the Appalachian Trail. But have no fear, Williams plans to drill under the Trail and not disturb the surface. In return for the right to cross a few acres of certain state-owned game lands in Lebanon County, the state is picking up a whopping 285 acres owned by Williams in Monroe and Lackawanna counties…
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Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Regulation | Statewide NY | Williams

Constitution Pipeline Gets a Little (Court) Help from Its Friends
July 21, 2016July 21, 2016

Constitution Pipeline map – click for larger version

In perhaps the sleaziest of sleazy political moves, New York Gov. Andrew Cuomo made the non-science-based political decision to deny the Constitution Pipeline stream crossing permits in April (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The man is a menace to all New Yorkers. He caves to his radical, fringe left on a regular basis, as he did with his decision to deny the Constitution Pipeline. Williams, Cabot and the other partners in the project aren’t taking it laying down. They sued New York State in federal court with the very real possibility that the court will neuter NY’s decision-making role in the project (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). The Constitution doesn’t stand alone. A number of national industry organizations are coming to the Constitution’s defense. On Tuesday the Natural Gas Supply Association (NGSA) and other groups together filed an amicus curiae brief with the U.S. Circuit Court of Appeals for the Second Circuit. “Amicus curiae” means “friend of the court” in Latin. The brief (full copy below) makes the point that states should not be the tail that wags the federal-oversight-of-such-projects dog. That is, the New York Dept. of Environmental Conservation (DEC) is preventing the Federal Energy Regulatory Commission (FERC) from doing its job. One government entity (especially a state) cannot block the power and authority of another government entity (in particular the federal government)…
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Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Spectra’s Access Northeast Pipe Wins Important Approval in Maine
July 20, 2016July 20, 2016

Click for larger version

In July 2014 Spectra Energy unveiled plans to deliver an extra 1 billion cubic feet of natural gas per day to New England and beyond by expanding the existing Algonquin and Maritimes pipeline systems (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project was eventually named the Access Northeast Project, a direct competitor to Kinder Morgan’s proposed Northeast Energy Direct (NED) project. In February of 2015 we observed and asked the question, is Spectra’s project pulling ahead of Kinder Morgan’s project (see Access Northeast Pipeline — Pulling Ahead of Kinder’s NED Project?). It was our observation at the time that Kinder Morgan’s project is mostly “greenfield”–meaning they have to dig new trenches and lay new pipe in places where no pipeline currently exists–was vehemently opposed by antis, while Spectra’s project which lays new loops of pipe next to existing pipes in existing trenches was opposed, but with less vehemence. It seems our observation was prescient, as Kinder later canceled its project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Make no mistake, Spectra Energy still faces a steep uphill battle–but they are making progress. Evidence of that came yesterday when regulators in the state of Maine approved Spectra’s plan in their state. Or more accurately, they approved passing along some of the cost of Spectra’s proposed expansion to Maine electric rate payers, who would see far lower electric rates if the pipeline gets built (it will feed natgas-fired electric generating plants in the state)…
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Accidents | Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Rex Energy

PA DEP Fines Stonehenge $1.5M for Damaging 2 Butler County Swamps
July 19, 2016November 29, 2018

A year ago MDN told you about a new gathering pipeline project in Butler County, PA. Rex Energy contracted with Stonehenge Energy Resources to build a gathering system in Butler County (see Rex Energy Hires Stonehenge to Build Gathering Pipeline in PA). The new system got built last year and now provides Rex with an additional 400 million cubic feet per day of natural gas pipeline capacity. The Stonehenge gathering system delivers Rex’s gas to MarkWest Energy’s Bluestone processing plant. When Stonehenge built the pipeline, they had a few minor accidents. Some dirt slid down a hill into a creek. The creek empties into a couple of swamps. Ergo, some of the dirt got into the swamps. For that little mishap, Stonehenge has agreed to pay the PA Dept. of Environmental Protection a $1.5 million fine. DEP Acting Secretary Pat McDonnell called the minor mishaps “egregious and avoidable.” Whatever…
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Guernsey County | Industrywide Issues | Landfills | Ohio | Regulation

Guernsey County, OH Opposes Facility to Treat/Store Drill Cuttings
July 19, 2016July 19, 2016

Guernsey County, OH

EnerGreen 360 wants to build a facility in Guernsey County, OH to treat and re-use drill cuttings (leftover rock and dirt from shale drilling). The plan is to clean up the cuttings and use the leftover leftovers (rock and dirt) to backfill part of a business center were the facility would be located–near Cambridge, OH. But County Commissioners are unanimously against the plan, saying that although Guernsey sees a lot of Utica drilling, producing lots of drill cuttings, the county already absorbs “more than our share of frack-related waste.” The commissioners cite multiple injection wells in the county as being evidence of shouldering more than their fair share of the burden. So apparently the commissioners want some other county to take Guernsey’s drill cuttings instead, since Guernsey takes other counties’ shale wastewater. Fair? Not fair? You decide…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Which Energy-Related Items Survived, Which Didn’t in PA Budget
July 19, 2016July 19, 2016

Some interesting Marcellus-related items were included in the recently adopted Pennsylvania state budget that have largely flown under the radar. There are also a few things that weren’t in the budget bill–previously intended to be part of it–that didn’t survive the process. At the top of the list is lack of a severance tax. But right behind that (for us) is that a gross receipts tax on natural gas use, which we thought would be part of the final deal, was not. As MDN previously reported, a gross receipts tax taxes end users of natural gas, in essence targeting low-income households (see Proposed NatGas Gross Receipts Tax Targets PA Low-Income Earners). So three cheers that those two onerous taxes–a severance tax and gross receipts tax–were eliminated by vigilant Republicans (Democrat Gov. Wolf wanted both). What about things that made it through? One item is an amendment that eliminates extra fees and permitting requirements if a driller happens ti “nip the top of the Onondaga” rock layer when drilling a Marcellus well, as sometimes happens. Another provision diverts some money from a fund intended to encourage “high performance buildings” to a program that gives businesses incentives to switch to using natural gas. Love it! Here’s what made the cut, and what didn’t, in the 2016/2017 PA budget…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY

FERC Rejects NY AG’s Anti-Constitution Pipeline Petition
July 18, 2016July 18, 2016

NY AG Eric Schneiderman – petition rejected by FERC

In May MDN told you about a sleazy political move by New York’s corrupt Attorney General, Eric Scheiderman, who petitioned the Federal Energy Regulatory Commission (FERC) to investigate Williams over the Constitution Pipeline, with a recommendation that FERC withdraw its approval of the project (see NY Attorney General Asks FERC to Investigate Constitution Pipe). Schneiderman claimed that Williams was cutting trees along the path of the pipeline before the state had issued stream crossing permits (which it decided not to do). We told you, in a follow-up story, that Schneiderman’s claims of premature tree cutting by Williams was a fraud (see NY AG’s Allegation of Tree Cutting by Constitution Pipe a Fraud). A Binghamton Press & Sun-Bulletin investigation found that some trees along the pipeline’s path in New York State had been cut–but not by Williams. The landowners themselves were cutting the trees in anticipation of the project–to profit from the sale of the timber. On Friday FERC officially responded to the corrupt Schneiderman’s petition by saying, in so many words, to stuff it…
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Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Processing Plants | Regulation | Statewide MD

Radical Enviro Groups Suffer Big Court Defeat re Cove Point LNG
July 18, 2016July 18, 2016

Anti-drilling zealots attempting to stop the Cove Point, Maryland LNG (liquefied natural gas) from going online have failed in court, again. And they failed big time. MDN reported in April that a group of Big Green groups, including the Sierra Club, the Chesapeake Climate Action Network, the Patuxent Riverkeeper, EarthReports Inc. and Earthjustice colluded together to sue in federal appeals court to try and stop the project (see Green Groups Ask DC Judge to Stop Construction at Cove Point LNG). On Friday the U.S. Court of Appeals for the District of Columbia ruled against the groups. The argument they raised (and keep raising) is that the Federal Energy Regulatory Commission (FERC) did not take into account so-called cumulative effects in permissioning such a facility. That is, because there is an export facility, that means there will be more drilling and fracking, and that means more air pollution, etc. The court rejected that claim and said in their decision (full copy below) that FERC is not required to consider such cumulative affects. Indeed, FERC’s charter prohibits them from considering such effects. This is a crushing defeat for Big Green–people and corporations who seek to profit from uneconomical solar and wind projects by unfairly crushing the competition (natgas)…
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