Critical Project for Canadian LNG Exports Gets Favorable FERC Review
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…
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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 
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…
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…
How do you prove a negative? You can’t. But that’s the (illegal) demand Penn Township (near Pittsburgh) is placing on Apex Energy. Penn Township’s zoning board has denied Apex permits to begin building a well pad for an eventual nine wells–wells that are fully permitted and permissioned by the PA Dept. of Environmental Protection (DEP). The Penn Township ordinance “states that drillers have to prove that the drilling site won’t violate Penn Township citizens’ rights to clean air and water.” Apex provided air and water studies showing possible risks from accidental spills, etc.–along with how they will prevent such things from happening. But the zoning board was tone deaf and rejected it. So what’s next? We’ve seen this movie before. Last year a group of anti-drillers took Apex to court to stop drilling on two wells, with the town backing them. Apex’s lawyers roared that the company was losing $70K per day by not drilling, threatening to sue. The town backed down, and Apex drilled the wells…
The partners in the Constitution Pipeline, including Williams and Cabot Oil & Gas, have come roaring back against Gov. Cuomo and his pusillanimous Dept. of Environmental Conservation (DEC) after the DEC lied last Friday in announcing they would not grant stream crossing permits for the pipeline project. Yesterday Cabot, along with Williams, issued a STRONGLY worded rebuttal that says, in part that the DEC’s “stated rationale for the denial includes flagrant misstatements and inaccurate allegations, and appears to be driven more by New York State politics than by environmental science.” Flagrant misstatements is another way of saying the DEC lied, which is exactly what we said yesterday (see 
New York Gov. Andrew Cuomo’s action to stop progress on the Constitution Pipeline has very real, tangible negative effects on jobs in Upstate New York. This is the true story of two large regional employers in New York’s Southern Tier that would benefit from cheap, abundant, and clean-burning Marcellus Shale gas from northeastern Pennsylvania. Wait. You believed the anti’s lie that all of the gas traveling through the Constitution would be transported to other areas, with much of it exported, and would not in any way benefit local residents? Yeah, that’s a lie. Another 100% lie pedaled by irrational fossil fuel haters. As the Constitution crosses places like Broome, Chenango and Delaware counties in the Southern Tier of New York State (i.e. “Upstate”), the pipeline will be tapped in several locations by Leatherstocking Gas Co.–a small but important local utility company. Leatherstocking will then provide gas to area communities and to two large businesses. One of those businesses is the Amphenol Aerospace plant in Sidney, NY. Amphenol is the largest employer in Delaware County with some 1,100 employees. Amphenol needs cheap Marcellus Shale gas from the Constitution to stay competitive and to keep the plant open. The second business is located in the small Chenango County village of Greene–Raymond Corporation. You know those bright red-colored forklifts you see in warehouses and factories? They’re all built at Raymond, which ships them worldwide. The facility is now owned by Toyota. Raymond also needs natural gas from the Constitution Pipeline. With over 
The Delaware River Basin Commission (DRBC), charged with overseeing potential impacts on the Delaware River and the various tributaries that feed it, has once again stepped outside of its legal bounds. The PennEast Pipeline is a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ–part of it through the Delaware River Basin area. In 2014 the DRBC tried to tell PennEast and its sponsors that the pipeline will need their approval before it can be built (see 
Last week midstream giant Kinder Morgan announced they didn’t have enough demand lined up for their proposed $3.3 billion Northeast Energy Direct (NED) pipeline and so they will suspend any more work on the project (see 
Radical environmentalists from groups like the Sierra Club, Chesapeake Climate Action Network and Earthjustice continue a full court press to try and stop Dominion’s Cove Point LNG (liquefied natural gas) export facility, currently under construction (more than a quarter done) along the coast of Maryland. These groups coordinate and collude to try and deny a single, legitimate business–Dominion–the right to conduct business. Sounds like something out of Stalin’s Russia or Hitler’s Germany–but no. It’s right here in the US of A. Here’s the radical’s strategy in a nutshell–throw as much feces against the wall as you can, and hope that some of it sticks. One pile of feces they’ve thrown is to file multiple lawsuits, in various courts (see 
You can’t see we didn’t predict this outcome: New York Gov. Andrew Cuomo has made the political decision to not grant the Constitution Pipeline stream crossing permits, temporarily stopping the project from advancing. Cuomo’s lackeys at the totally humiliated and discredited Dept. of Environmental Conservation (DEC) made the announcement on Friday, so-called Earth Day. Virulent anti-drillers erupted in spontaneous (and multiple) orgasms at the news. The DEC claims Williams, the builder of the Constitution, did not provide detailed information about pipe burial that the DEC had requested. This is a blatant, 100% lie. Gov. Cuomo is corrupt and is being led, as our friend Tom Shepstone points out, by the nose by Rockefeller money. Prosecutor Preet Bharara–are you paying attention? MDN now calls on the Federal Energy Regulatory Commission (FERC) to bypass New York State, as is its right under the U.S. Constitution. FERC has the power to bypass Cuomo and the DEC and authorize the pipeline without NY’s stream crossing permits. Yes, hoops will need to be jumped through with various courts, but now is the time to permanently remove NY from such decision-making. The state has proven it is incapable of making independent, science-based decisions on the topic of oil and gas drilling and pipelines. Time to overrule the state and move on. Below we have the DEC’s pathetic political cover-up, along with various responses to the news…
PennFuture is a radical, anti-drilling group based in Pennsylvania. The group is the former employer of no less than two current, one former high-level deputies to PA Gov. Tom Wolf. Cindy Dunn was most recently PennFuture’s CEO. She is now the Secretary of the PA Dept. of Conservation and Natural Resources (DCNR). John Quigley used to work for PennFuture. He’s now Secretary of the PA Dept. of Environmental Protection (DEP). John “legalize marijuana” Hanger was the Secretary of the PA Dept. of Planning and Policy for Wolf. Hanger recently left–the state–to join his wife and daughter in Massachusetts (see 
Earlier this week MDN told you that a judge refused to sanction a lawsuit filed by the Pennsylvania Independent Petroleum Producers Association (PIPP) against implementation of new rules and changes to existing rules known as Chapters 78 & 78a (see 