Regulation

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    Bear Head LNG Exports Get Final DOE Approval – Good for Marcellus

    A Canadian liquefied natural gas (LNG) export facility planned for Nova Scotia received final authorization from the U.S. Dept. of Energy (DOE) to export LNG to countries that do not have free trade agreements with the United States. Bear Head LNG, a $2.2 billion project proposed by Australian company Liquefied Natural Gas Limited (LNGL) received Canadian approval a year ago (see Canada’s 1st LNG Export Facility Gets Green Light; Marcellus Gas?). The project then received DOE approval to export to free trade agreement countries in July of 2015 (see 2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas). Now the project is approved for non-free trade agreement countries. However, as we said in July, there are still important hurdles to jump before the project gets built: (1) the Maritimes & Northeast pipeline has to get FERC permission to reverse its flow, which will send Marcellus and Utica gas northward; (2) the gas has to get to the Maritimes & Northeast pipeline in the first place via new pipelines from either Kinder Morgan or Spectra Energy (currently a battle royale); and (3) the price of oil has to rise to make the whole thing economical, since LNG is so closely tied to the price of oil. We don’t see that happening until later this year, at the earliest. Here’s the exciting announcement that regulation-wise the project is cleared for take-off…
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    29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP

    On January 26, 2016, 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of President Obama’s Clean Power Plan (CPP). A week before the D.C. Circuit Court of Appeals denied such a stay, so the states are taking it to the final authority in such matters. The states are begging the court for a stay because the CPP will do “irreparable harm” if it is allowed to be implemented by the dictatorial Obama Administration. For background on how this horrible plan will damage natural gas and our economy in general, see 9 Fatal Flaws with Obama EPA Clean Power Plan. Energy law firm Baker Hostetler LLP is the law firm of record for the State of Oklahoma and Oklahoma Department of Environmental Quality in this case. Below is an update from Baker Hostetler on the Supreme Court filing…
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    PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”

    PA DEPYesterday the Pennsylvania Environmental Quality Board (EQB) approved “sweeping” new changes to the regulations governing oil and gas drilling in the state (for a copy of what was passed, see PA DEP Issues “Final” New Drilling Regulations; Industry Pushback). In the end the vote came down 15-4 to pass the onerous new regulations which, according to the Marcellus Shale Coalition, will cost the industry $2 billion per year without any corresponding safety improvements for the general public. The interesting thing is that two advisory boards appointed by Gov. Wolf and Dept. of Environmental Protection PennFuture Secretary John Quigley–the Conventional Oil and Gas Advisory Committee and the Technical Advisory Board (for unconventional)–came out against the new regulations. What does that tell you? A previous version of the new regs was ready to go at the end of 2014 and then Gov. Wolf won election, installed a radical environmentalist to run the DEP (Quigley) and promptly changed the rules to damage to the drilling industry–both conventional and unconventional. These new regs are the result. The Pennsylvania Independent Oil & Gas Association (PIOGA) minces no words by saying, “The four-year process of developing these regulations has been an exercise in deception, misinformation and disregard of the law by the Department of Environmental Protection that escalated under Gov. Wolf.” Below is a look at the sausage making behind the new rules, and industry’s response…
    Read More “PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive””

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    Big Green Groups Funding Fayette County, WV Ban Lawsuit

    The people behind Big Green groups are nasty people. They are, according to one source we have communicated with, “terrorizing” legitimate oil and gas businesses in Fayette County, WV. We’ve highlighted the ongoing story of three liberal Democrat county commissioners who decided to ban not only injection wells, but over 500 conventional oil and gas wells currently operating in Fayette County, WV (see Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells). The ban was intentionally written so broadly (by Big Green groups assisting the county) it not only bans injection wells, like those operated by Danny Web Construction and EQT, but it will also ban currently operational oil and gas wells. It is an outrageous offense and “taking” of private property, violating the Fifth Amendment of the Constitution. EQT and Danny Web have sued the county and a federal judge slapped an injunction on the county’s ban (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). You can add another outrage to the situation. The county will be represented in the lawsuit against them by several Big Green groups, groups with deep pockets and armies of lawyers, for FREE. It is a clear conflict of interest and should not be allowed. Members of these groups are responsible for falsely calling in claims of spills that never happened, making false claims alleging toxins in streams that don’t exist, etc. These groups have perpetuated smear campaigns against legitimate o&g businesses–ruining reputations. And now they will be allowed to use their enormous financial resources to defend the county in this lawsuit? Sick…
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    Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells

    An update on a developing story we’ve covered the past several months. In January, three Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). In fact, the ban is intentionally written so broadly it will also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). Not long after, a U.S. District Court judge slapped an injunction on the county preventing them from enforcing the ban at least until a hearing scheduled for later this month (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). The judge says EQT “is likely to succeed” in their lawsuit to overturn the ban.” The new news is an article where one of the chief architects of the ban, from the Mountain Party, admits the ban is intended to stop all oil and gas activity in the county. Another well operator in Fayette County, Cabot Oil & Gas, is now evaluating the ban and considering joining the lawsuit against the county. We sure hope Fayette County has a LOT of money squirreled away for legal fees and fines and penalties coming their way…
    Read More “Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells”

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    NJ Pinelands Commission Chairman Replaced, Pipeline Back On?

    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). It was our hope that the plan to build the short 22-mile pipeline to bring natural gas to South Jersey would once again reactivate. So far it hasn’t. But perhaps there is new hope. Gov. Christie has just replaced the chairman of the Pinelands Commission with his own person in that position. The former chairman, who is a Republican (but caved to pressure and voted no on the pipeline) is not saying this is political payback, but he implies such is the case. We certainly hope it is…
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    FERC OKs Tree-Cutting for Constitution Pipeline – in PA

    In a crushing blow to anti-drilling radicals who have tried their best to stop the Constitution Pipeline, the Federal Energy Regulatory Commission (FERC) has granted Williams, builder of the Constitution, permission to begin cutting down trees along the pipeline’s path in Pennsylvania. Williams still cannot fell trees in New York State, where the bulk of the pipeline will be built. However, FERC would not grant permission for PA unless they intend to grant permission on the other side of the border too–and everyone knows it. Currently New York’s anti-drilling governor, Andrew Cuomo, is holding up the 125-mile project that will deliver natural gas from Susquehanna County, PA to Schoharie County, NY by connecting with two interstate pipelines. Cuomo is about to create a constitution crisis in which the federal government will be forced to overrule the state and allow the pipeline to be built. Cuomo is withholding stream crossing permits–the only thing left before bulldozers begin to clear a path. Cuomo is once again caving to pressure from his lunatic left base of supporters. And he’s about to turn New York into a third-rate state, controlled by the federal government, through his unwillingness to grant the permits…
    Read More “FERC OKs Tree-Cutting for Constitution Pipeline – in PA”

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    New Effort to Pass HB 1391 Minimum Royalty Bill in PA

    Garth Everett
    Garth Everett

    Last June MDN told you about a renewed effort by Pennsylvania State legislators to pass a minimum royalty bill that will guarantee PA’s landowners get at least 12.5% royalties (see New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties). House Bill (HB) 1391 is was introduced by State Rep. Garth Everett, Republican from Lycoming County, PA. Everett said in June the new bill was “narrowed” in focus from a previous bill (that had failed) and because the more narrowed focus, he hopes the Marcellus industry will not oppose it this time around. The issue of guaranteeing minimum royalties is one of those rare issues that has divided the drilling industry and landowners. Everett said he hasn’t (until now) pushed the bill because of the budget stalemate, but now that the budget impasse is mostly over, he’s going to make a renewed effort to get HB 1391 passed…
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    Southern NJ NatGas Pipeline Approved by State BPU

    In January 2014 MDN brought you the very sad news that through bullying and intimidation, radical environmentalists from the New Jersey Sierra Club and the League of [Liberal Democrat] Women Voters had pressured the New Jersey Pinelands Commission into rejecting a plan for a 22-mile natural gas pipeline that would power an electric generating plant–replacing coal that powers the plant now–and also bring natural gas to residential homes in beautiful Cape May County, NJ (see Sierra Club, LWV Chooses Coal over NatGas in South Jersey). These so-called environmentalists would rather have the residents of South Jersey breath dirty air rather than clean air that comes from natural gas powering a local electric plant. We’re happy to report that a different pipeline, a $130 million, 30-mile natural gas pipeline just north of where the rejected pipeline would have run, has been approved by the NJ Board of Public Utilities (BPU). It is a major defeat of the Sierra Clubbers and their ilk. So of course, the Clubbers are suing…
    Read More “Southern NJ NatGas Pipeline Approved by State BPU”

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    Judge Stops WV County from Enforcing Injection Well Ban, For Now

    The second step has been taken in overturning an illegal ban on wastewater injection wells in Fayette County, WV. You may recall we told you two weeks ago that three Democrat county commissioners voted to ban injection wells (see WV County Officially Bans Injection Wells; Children Brainwashed). There are two injection well operators in Fayette County: Danny Webb Construction and EQT. The day after the vote EQT sued to overturn the new ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). On Tuesday, Jan. 19, U.S. District Court Judge John T. Copenhaver Jr. granted an injunction preventing the county from enforcing the ban at least until a Feb. 11 hearing. As part of his reasoning, Judge Copenhaver said EQT “is likely to succeed” in their lawsuit to overturn the ban…
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    FERC Investigates 3 Northeast Pipelines for Overcharging

    The Federal Energy Regulatory Commission (FERC) has launched five investigations into four pipelines, three of which operate in the northeast, to determine whether or not those pipelines have been “substantially” overcharging their customers with the excuse of “we have to recover our costs.” Although you might think the free market would govern what pipelines charge, pipelines, like other utilities, don’t operate in a totally free market. You can’t just up and leave one pipeline and take your gas to another. The government grants permission to operate, and the government keeps an eye on the rates charged–just like they do with your local gas and electric company. In the case of interstate pipelines, the government agency monitoring how much they charge is FERC. Apparently someone complained and FERC is now on the case. The three pipelines in the northeast under investigation are: Empire Pipeline, Iroquois Gas Transmission System and Columbia Gulf Transmission…
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    API & GPA Say PHMSA Regs for Liquids Pipelines Not Necessary

    Last October the Dept. of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a notice of proposed rulemaking for new regulations governing hazardous liquid pipelines. It appears to be another case of aggressive action by the Obamadroids, bent on hassling the fossil fuel industry by requiring unnecessary regulations that don’t really improve safety. They just cost more money and take more time. The new rules will require safety inspections after “extreme” weather events and natural disasters–just to be sure there aren’t any leaks. Stepped up inspections would be required even if no problems are found–just to be sure no problems are found. The new regs also require all hazardous liquids pipelines to be piggable–something not physically possible with some pipelines. The list goes on. Recently both the American Petroleum Institute (API) and the Gas Processors Association (GPA) weighed in on the proposed new regulations. Needless to say they’re not impressed…
    Read More “API & GPA Say PHMSA Regs for Liquids Pipelines Not Necessary”

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    Cuomo Needs to “Snap on a Pair” and Approve the Constitution Pipe

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    Constitution Pipeline Meeting in Afton – click picture for larger version

    “What do we want? Pipeline! When do we want it? Now!” It was a raucous crowd who gathered last Saturday in the tiny village of Afton, New York to show support for the Williams Constitution Pipeline project. The River Club in Afton was jammed with people–by our estimation some 250-300 people. The meeting was organized and hosted by the Joint Landowners Coalition of New York (JLCNY). The JLCNY’s attorney, Scott Kurkoski (from Levene Gouldin & Thompson LLP) began the meeting with a full-throated yell: “New York Can’t Wait!” That simple sentence summed up the focus of the rally. The Constitution Pipeline is fully permitted by the Federal Energy Regulatory Commission (FERC). The only thing holding up construction of the pipeline is a stream-crossing permit from New York State. The tail is wagging the dog. Speaker after speaker (politicians, business people, labor reps) outlined the reasons why New York State can no longer wait for Gov. Cuomo to continue his waffling on this project. The frustration with Cuomo and the DEC was palpable in the audience. Whenever Cuomo’s name was mentioned there were cat calls and boos. Perhaps the best line of the day, from all of the speeches, was uttered by Assemblyman Clifford Crouch. Cliff mentioned he had called the Dept. of Environmental Conservation (DEC) just a few days prior to ask about the status of the permits. Without saying so, the DEC rep indicated the delay is not due to the agency itself. The implication was clear: Cuomo is holding it up. Crouch then said this: “We need to contact Snap-on Tools and get the governor a pair to snap on!” The crowd roared. They loved it!…
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    US Forest Service Blocks Atlantic Coast Pipeline in National Forests

    Cow Knob Salamander
    Cow Knob Salamander

    In the end it was the cow nobs and red spruce that have slowed down Dominion’s $5 billion Atlantic Coast Pipeline (ACP) project from West Virginia through Virginia and into North Carolina. Specifically, the U.S. Forest Service (USFS) has refused to grant Dominion a special permit to cross teeny tiny sections of the Monongahela and George Washington national forests in West Virginia and Virginia. Why? Because of concerns about cow knob salamanders, northern flying squirrels and red spruce trees. Just last November MDN told you that Dominion and ACP were bending backwards, forwards and sideways to avoid running through cow nob salamander territory (see Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp). Apparently the USFS doesn’t think Dominion’s plan is good enough. It’s now back to the drawing board to see where, in those regions, ACP can safely be run to avoid radical environmentalist demands. Of course the answer is “no where” as they are always unreasonable about these things. There is no “how can we work this out to your satisfaction” when it comes to nut cases. The antis simply demand, like petulant children, that you not do it at all. Which is just what the other side is now saying about ACP…
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    FERC Takes it Time with 5 Marcellus/Utica Pipeline Projects

    “Your wait time is 12-18 months, please hold.” That’s what the Federal Energy Regulatory Commission (FERC) is telling midstream companies anxious to build new pipelines in the Marcellus/Utica. Five major pipeline systems representing $15 billion of investment are currently on hold while FERC runs through it’s sloooooow process of approval. FERC’s response/excuse is that it takes 12-18 months, period. Like it or lump it. The five pipelines now on hold in the southwest PA/eastern OH/WV area include: Atlantic Coast Pipeline, Rover Pipeline, Nexus Pipeline, Leach Express Pipeline and the Mountain Valley Pipeline. Rover filed its application with FERC last February, so they’re not even a full year into the process yet. The others filed later. Although industry groups are trying to pressure FERC (via publicity) FERC isn’t moved by calls to speed up the process…
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    Real Property Bill in OH Legislature has Big Implications for O&G

    A bill in the Ohio Senate, SB 257 (copy below), would have a “substantial effect” on determining whether or not you have a good title in a real property transaction. Which may sound rather boring, like watching paint dry. Except in this case, the changes to the real property law may have a profound impact on oil and gas interests in Ohio–impacting mineral rights that are part of a property. The changes being proposed under SB 257 expand the scope of what kinds of “defects” in a title that can be “cured,” and reduces the amount of time a title can be contested from 21 years down to 4 years…
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