Regulation

Industrywide Issues | Lease & Royalty Payments | Ohio | Regulation | Statewide OH

Appalachia NARO Calls for Drilling in Wayne Natl Forest – NOW
May 13, 2016May 13, 2016

Yesterday we reported that a group of Ohio landowners calling themselves LEASE (Landowners for Energy Access and Safe Exploration) are encouraging Ohio residents to write in support of drilling in the Wayne National Forest (see OH Landowners Urge BLM to Proceed with Wayne Natl Forest Drilling). The federal Bureau of Land Management (BLM) has been holding up drilling in WNF, even though some 60% of the mineral rights for the land in the forest is privately owned. Another landowner group has stepped up to add their voice–and to push back a little harder than LEASE has. The Appalachia chapter of the National Association of Royalty Owners (NARO) is calling on the BLM to allow drilling–now. NARO points out most of the mineral rights are privately owned–not controlled by the government. For the government to stop development of private land is an offense…
Read More “Appalachia NARO Calls for Drilling in Wayne Natl Forest – NOW”
Industrywide Issues | Ohio | Regulation | Statewide OH

OH Landowners Urge BLM to Proceed with Wayne Natl Forest Drilling
May 12, 2016May 12, 2016

Wayne National Forest

As MDN told you last week, the Bureau of Land Management (BLM) is currently seeking public comments on a plan to allow drilling in Ohio’s Wayne National Forest, or WNF (see Another Baby Step in Fracking Ohio’s Wayne National Forest). WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights going on a decade. Ohio landowners are fed up with waiting for the federal bureaucracy to get off its rear-end and allow drilling. In response to the latest BLM call for public input, a group of Ohio landowners calling themselves LEASE–Landowners for Energy Access and Safe Exploration–praising the BLM for its favorable Environmental Assessment (EA) on WNF drilling, and calling on Ohio landowners to provide comments to the BLM during this period. LEASE is hoping a strong showing from Ohio landowners may push the groaning, creaking federal bureaucracy into action to allow drilling…
Read More “OH Landowners Urge BLM to Proceed with Wayne Natl Forest Drilling”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Meigs County | Ohio | Regulation

PA-Based CELDF Looks for New Dupes in Meigs County, OH
May 12, 2016May 12, 2016

We’ve written plenty in the past about the PA-based radical anti-drilling group called CELDF–Community Environmental Legal Defense Fund (see our CELDF stories here). CELDF seems to have a lot of success in tricking people in Ohio into believing they can pass a so-called Community Bill of Rights to ban fracking, injection wells, etc.–illegal under Ohio state law. When such legislation is passed and then gets challenged, it loses in court. Every time. And when private companies sue for damages, taxpayers end up footing the bill and the CELDF is nowhere to be found (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). The CELDF is trying their trickery again–this time in Meigs County, OH and in the City of Waterville (in Meigs County). As Forrest Gump said: Stupid is as stupid does…
Read More “PA-Based CELDF Looks for New Dupes in Meigs County, OH”
Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation

PennEast Pipeline Requests NJ’s Help with “Green Acres” Process
May 10, 2016May 10, 2016

The PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, continues to bend over backwards, forwards and into yoga knots in order to accommodate the wishes of various special interest groups. The latest in that effort is PennEast’s invitation to several New Jersey municipalities and non-profit groups to provide feedback on PennEast’s open space initiative. Part of the PennEast route will traverse 15 acres of encumbered “Green Acres” parcels–open spaces meant to stay open and not be developed. PennEast plans to lay their pipe four feet down, cover it up, and the green/open spaces will remain green and open, forever. In fact, according to PennEast, when the pipeline installation is done and dusted, there will be “significantly more open space” than there is today. Look for THE Delaware Riverkeeper (Maya van Rossum) and other radical leftists to demagogue this latest effort by PennEast to be a good neighbor…
Read More “PennEast Pipeline Requests NJ’s Help with “Green Acres” Process”
Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

What Can We Learn from Spectra’s Success with Pipeline Projects?
May 9, 2016May 9, 2016

With pipeline projects like Kinder Morgan’s Northeast Energy Direct (NED) deciding to call it quits (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline), and projects like the Constitution Pipeline that runs through New York State on life support (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline), you have to ask an honest question: What pipeline projects can and do get approved and built? There’s one company that seems to enjoy more success than others when it comes to getting new projects built–Spectra Energy. Kinder’s NED was arguably the superior project when it comes to getting natural gas to New England, yet Spectra’s competing Access Northeast project seems to have won. Why? What can we learn from Spectra that might help the rest of the industry when it comes to getting projects built?…
Read More “What Can We Learn from Spectra’s Success with Pipeline Projects?”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Democrat Senator Calls for Frack Ban in Lake Erie Watershed
May 9, 2016May 9, 2016

PA State Sen. Sean Wiley

Yet another Pennsylvania Democrat in the state legislature is calling for a frack ban. What is it about PA Dems and their allergies to fossil fuels? This time the pandering Dem is State Sen. Sean Wiley–and he’s calling for a ban on fracking in the Lake Erie watershed of western PA. His reasoning for illegally seizing the property rights of his constituents is really kind of funny. He says there should be a ban until we “see what are the risks associated with unconventional drilling.” Even though PA has been using unconventional drilling (i.e. horizontal drilling with hydraulic fracturing) in the Marcellus Shale since 2004. Apparently 13 years of intense drilling in the Keystone State is still not enough for Sen. Wiley to know what the risks associated with such drilling are. Either Wiley is lying, or he’s a dope. We doubt he’s a dope…
Read More “PA Democrat Senator Calls for Frack Ban in Lake Erie Watershed”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Williams

Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC
May 6, 2016May 6, 2016

Atlantic Sunrise Pipeline map – click for larger version

The sun continues to rise on on Williams’ Transco Atlantic Sunrise pipeline project. It seems like we’ve covered the story of Atlantic Sunrise forever–a $2.1 billion project consisting of compression and looping of the Transco Leidy Line in Pennsylvania along with a greenfield (brand new) pipeline segment of 178 miles, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania (see Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs). There’s been some opposition from wackos and nutjobs–but for all their bluster, they are relatively few in number. In April 2015 Williams filed an official application with the Federal Energy Regulatory Commission (see It’s Official: Williams Files with FERC for Atlantic Sunrise Pipeline). A major step in the approval process is to receive a favorable environmental impact statement (EIS) from FERC. That happened yesterday. FERC says that although there are “some impacts on the environment,” those impacts “would be reduced to less-than-significant levels” with proposed mitigation by Williams. This is really terrific news–an indication that FERC will grant final approval later this year or early next year…
Read More “Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC”
Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Statewide NY | Williams

Analyst Says Check Your History, Constitution Pipe Won’t Get Built
May 6, 2016May 6, 2016

Constitution Pipeline map – click for larger version

An analyst with a Washington, D.C. policy and research firm believes that Gov. Andrew Cuomo’s recent action in denying Williams stream crossing permits for the Constitution Pipeline means that project is dead. He cites another pipeline project from a decade ago–the Islander East project–that faced a similar situation. In the end, Islander East didn’t get built. He believes the same fate is in store for the Constitution. We sincerely hope he’s wrong and that FERC (Federal Energy Regulatory Commission) will “grow a pair” and not let Gov. Cuomo bully them. At its heart this is a battle over the trampling of federal authority. We find it curious that Obama and his sycophants throughout the government are hellbent on expanding federal authority over every aspect of our lives–from health care, to what we eat, to what forms of power we can use. And yet these same people stand by and are silent when a federal agency like FERC is emasculated by a state like NY. Of course it should be the opposite. This is one time when the federal government Constitutionally has the authority to act, and that authority has been illegally co-opted by a state. FERC needs to force the issue in court to overrule NY’s abuse of power. The analyst, however, doesn’t see it that way…
Read More “Analyst Says Check Your History, Constitution Pipe Won’t Get Built”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Bill Trims PA Gov’s Control over Environmental Quality Board
May 6, 2016May 6, 2016

PA State Rep Cris Dush

Republican members of the Pennsylvania legislature are tired of radical leftists like PA Gov. Tom Wolf and his Secretary of the Dept. of Environmental Protection (DEP) John Quigley running environmental policies in the state like dictators. So they’re attempting to remove some of the power they have by changing the Environmental Quality Board (EQB). The EQB is part of the DEP. Its role is to adopt new regulations proffered by the DEP. Essentially it’s a watchdog to ensure new regulations don’t become too onerous. But the EQB has been co-opted by Quigley and Wolf–witness the recent EQB vote to adopt onerous new regulations by Quigley & co. known as Chapter 78 and 78a of PA’s oil and gas law (see PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). So PA State Rep. Chris Dush is about to float a new bill and is looking for co-sponsors of the bill, a bill that will remove the DEP Sec. as the Chairman of the Board for the EQB. It also expands membership of the board to 23 members (up from 20) and doubles the number of members appointed by the House and Senate from four to eight. In other words, it’s time to reshuffle the EQB deck and give the executive branch less of say on the board…
Read More “New Bill Trims PA Gov’s Control over Environmental Quality Board”
Allegheny County | Industrywide Issues | Litigation | Pennsylvania | Regulation

South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge
May 4, 2016May 4, 2016

Something noteworthy has happened in western Pennsylvania and (so far) local media has chosen not to cover it. So MDN is happy to break the following story about South Fayette Township in Allegheny County (near Pittsburgh). South Fayette is one of seven PA towns that sued the state after the Act 13 law was enacted in 2012 (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law). Ultimately the towns won their case at the PA Supreme Court level, winning the right to enact their own ordinances with respect to oil and gas drilling. A nutty concept that towns have the necessary skills to regulate a complex industry like oil and gas–but there you go. Range Resources and landowners in the town, including Cuddy Partners, have had a long-running feud with the town over their hyper-restrictive ordinances (see Pittsburgh Post-Gazette article Drilling regulations face challenge in South Fayette). In 2015 South Fayette decided to revise their ordinance yet again with respect to shale drilling, making the ordinance even more restrictive than before. Cuddy Partners and Alpine Partners (landowners in the town) sued over the revised ordinance. The lawsuit alleged the ordinance was improperly enacted–rushed through without proper public notice. Last week Allegheny Court of Common Pleas Judge Joseph James agreed and ruled that the South Fayette revised ordinance is “invalid, null and void”…
Read More “South Fayette, PA Restrictive Drilling Ordinance Tossed by Judge”
CNG/LNG | Energy Services | Exporting | Industrywide Issues | Pipelines | Regulation | Spectra Energy

Critical Project for Canadian LNG Exports Gets Favorable FERC Review
May 3, 2016May 3, 2016

Click for larger version

Spectra Energy’s Atlantic Bridge project has just gotten an important “favorable” Environmental Assessment (EA) from the Federal Energy Regulatory Commission. A favorable EA is a signal that FERC will, later this year, grant a full approval for the project. And that’s really good news for Canadian LNG export plants–and equally good news for Marcellus drillers. Here’s how this news all ties together. The Atlantic Bridge project is a series of upgrades to two different pipeline systems already in existence: the Algonquin Gas Transmission (AGT) pipeline and the Maritimes & Northeast Pipeline (M&NE). The two pipelines will be connected along the coast of Massachusetts, near Boston. Thing is, right now the M&NE flow gas from north to south, from Canada to the U.S. Part of the Atlantic Bridge project is to make M&NE bidirectional, able to flow gas from south to north. The AGT will collect gas from the prolific Marcellus via a third Spectra-owned pipeline–the Texas Eastern Transmission Company (TETCO) pipeline–delivering Marcellus gas to New England. Yes, much/most of the gas will go to New England, but excess gas produced during periods of the year when not as much gas is used in New England will then be available to flow on up to Canada and to one of several new LNG export facilities either in planning or under construction. It all starts with a favorable EA…
Read More “Critical Project for Canadian LNG Exports Gets Favorable FERC Review”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

Another Baby Step in Fracking Ohio’s Wayne National Forest
May 3, 2016May 3, 2016

Wayne National Forest – click for larger image

Wayne National Forest (WNF) is the only national forest in Ohio and portions of it are found in Athens, Gallia, Hocking, Jackson, Monroe, Morgan, Noble, Lawrence, Perry, Scioto, Vinton, and Washington counties. WNF is a “patchwork” of public land scattered among private land. Some 60% of the mineral rights below WNF are privately owned. Those mineral rights owners have been denied the use of their property rights going on a decade. The federal Bureau of Land Management (BLM) controls drilling on federally-protected lands like WNF. Last November the BLM held a series of hearings about finally beginning to drill in WNF. In January we told you that the BLM is working on a draft Environmental Assessment for drilling in WNF (see Small Progress with Drilling in Ohio’s Wayne National Forest). The BLM is ready to share the draft EA and wants public input–which means we now take another baby step toward drilling in WNF. As we previously pointed out in January, the BLM has decided to wait on pursuing drilling in the “Athens Unit” until 2017. However, the BLM is taking the next step in the “Marietta Unit” now. The draft EA is for the Marietta Unit (full copy of the draft EA embedded below)…
Read More “Another Baby Step in Fracking Ohio’s Wayne National Forest”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A | Regulation

Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”
May 2, 2016May 2, 2016

It’s a sad day for Halliburton and Baker Hughes. The two companies intended to get married, with Halliburton buying out BH and merging it in a deal worth $35 billion (see Shotgun Wedding: Halliburton Forces Baker Hughes to Sell). That was in November 2014. Since then, the two companies have jumped through every hoop demanded of them, including shedding assets (see Halliburton/Baker Hughes Hold a Pre-Merger Garage Sale). By the end of last year, rumors were circulating that the deal is in trouble (see Whispers Turning in Chorus, Halliburton/BH Deal in Trouble). Then European regulators began throwing cold water on the deal (see Europe Puts Halliburton/BH Merger Under a Microscope). No problem–HalliHughes thought they could still pull it off. But then the bullies of the Obama Justice Department got involved and sued to block the deal (see Obama DOJ Sues to Block Halliburton/Baker Hughes Merger). We can’t remember a time when the DOJ opposed a big deal it ended up happening. And so it is with this one. The bullies have won. In a rare Sunday press release, Baker Hughes says the deal is now off–and Halliburton owes Baker Hughes $3.5 billion in a breakup fee–due by this Wednesday. Happy May Day, Halli!…
Read More “Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated””
Electrical Generation | Energy Services | Industrywide Issues | Lycoming County | Northumberland County | Pennsylvania | Pipelines | Regulation | Snyder County | UGI Energy Services | Union County

UGI Sunbury Pipeline Gets FERC Approval, Built by November?
May 2, 2016May 2, 2016

UGI Marcellus assets map – click for larger version

Contrary to the lies spread by anti-pipeline groups like THE Delaware Riverkeeper, the Federal Energy Regulatory Commission is no rubber stamp for the oil and gas industry. In December 2014 Pennsylvania utility company UGI pre-filed an application to build a new 35-mile pipeline to feed a natgas-powered electric generating plant in Snyder County, PA (see UGI Pre-Files with FERC for New Marcellus Pipeline in Central PA and UGI Building 35-Mile Pipeline for Panda Power Electric Plant). The project was estimated to cost $150 million–money that goes into the local economy. It took long enough, but last week the Federal Energy Regulatory Commission (FERC) finally approved the project. The 20-inch Sunbury Pipeline will start in Lycoming County and travel through Montour, Union, and Northumberland counties, cross the Susquehanna River and ending up at Hummel Station Plant in Shamokin Dam in Synder County…
Read More “UGI Sunbury Pipeline Gets FERC Approval, Built by November?”
Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Expands Air Monitoring of Marcellus Sites, Compressor Stns
April 28, 2016April 28, 2016

The Pennsylvania Dept. of Environmental Protection (DEP) said yesterday they will launch an “unprecedented expansion” of air monitoring near compressor stations and shale wells in the Marcellus. DEP Sec. John Quigley said the DEP will add 10 new monitoring sites to its existing network of 27 sites. Part of the $1.56 million it will take to install and maintain the sites for five years is coming from taxpayers’ federal government pocket, from a Federal Clean Air Act grant. What does Quigley expect to do with the data they collect from this effort? On a teleconference call he said, “We have no expectations here. The ambition is to get a more comprehensive dataset.” There’s a fine expenditure of taxpayer’s money–spend it with no expectations! Here’s the low down on the latest DEP boondoggle…
Read More “PA DEP Expands Air Monitoring of Marcellus Sites, Compressor Stns”
Commodity Price | Industrywide Issues | Pipelines | Regulation

Constitution, Other NE Pipeline Delays – Blessing in Disguise?
April 27, 2016April 27, 2016

MDN is certainly not of this opinion, but we spotted a Reuters article that quotes several natural gas market analysts who say recent announcements of pipeline delays may boost natgas prices–and that’s a good thing. Of course being a good thing is in the eye of the beholder. Pipeline delays in the Marcellus/Utica–like the Constitution Pipeline–mean (a) lack of takeaway means natural gas prices in the Marcellus/Utica region will continue to be the lowest in the country, which means (b) drilling in the Marcellus/Utica will continue to slow and won’t restart any time soon, consequently (c) that will lead to less production, and so (d) less supply in the northeast will mean prices for natural gas, and things that natgas produces (i.e. electricity) will go higher in places like New York City and New England. Whether that’s all good news or bad news depends on your point of view…
Read More “Constitution, Other NE Pipeline Delays – Blessing in Disguise?”