Regulation

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    Ohio Injection Wells Under ODNR Microscope

    Water Energy Services has completed the final part of a project that eliminates the need for trucks to climb Harmer Hill, hauling brine to an injection well located along Ohio Route 676 in Washington County, OH. Instead, brine is hauled to and deposited at a facility on Ohio Route 7, and from there the brine is pumped, via pipeline, to three injection wells at the top of Harmar Hill. Just to give you an idea of how closely regulated these injection wells (and the pumping station) are, inspectors from the Ohio Dept. of Natural Resources (ODNR) make 2-3 inspections PER WEEK of the facility. There’s seismic monitors for each of the three injection wells that constantly report their data directly to the state. Every load of brine brought to the facility is tracked and logged. This facility (and others like) are, quite literally, under the ODNR microscope, which should alleviate resident’s concerns…
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    Kinder Morgan Ready to Move Forward with UTOPIA East Pipeline

    In April 2015 MDN told you that the Federal Energy Regulatory Commission (FERC) will not be involved with approving or overseeing construction for Kinder Morgan’s UTOPIA (Utica To Ontario Pipeline Access) ethane pipeline (see FERC Will Not Oversee UTOPIA NGL Pipeline Project in Ohio). Why not? Because UTOPIA, a 12-inch ethane pipeline running 240 miles will only be built in Ohio–it won’t cross state lines. It will, however, connect to another pipeline that crosses Michigan and enters Canada where the ethane (and some propane) will feed a NOVA Chemical cracker plant in Windsor, Ontario. Because it’s all within Ohio, the lead agency for approval and oversight for UTOPIA will be the U.S. Army Corps of Engineers, with an assist from the Ohio Dept. of Natural Resources (ODNR), the Ohio Environmental Protection Agency and the U.S. Fish and Wildlife Service. Kinder is saying they are ready to move forward with the UTOPIA project and will file for the necessary permits from state and federal authorities “within the next few months”…
    Read More “Kinder Morgan Ready to Move Forward with UTOPIA East Pipeline”

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    Small Progress with Drilling in Ohio’s Wayne National Forest

    There’s been some progress on the now nearly 10-year delay in drilling in the Wayne National Forest (WNF) in Ohio. 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. It’s a travesty. 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. The hearing held in Marietta (Washington County) was civil and orderly, with landowners respectfully asking questions and getting answers (see Overwhelming Support for Wayne Natl Forest Drilling @ BLM Mtg). The hearing held in Athens, OH, a hotbed of lefty lunatics, got out of control when they didn’t have a microphone to throw up on (see Anti-Frackers Out of Control at Athens Mtg on Wayne Natl Forest). Athens antis can breathe easy. 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…
    Read More “Small Progress with Drilling in Ohio’s Wayne National Forest”

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    WV County Officially Bans Injection Wells; Children Brainwashed

    brainwashedchildren.jpgAs we reported in December, two left-wing Democrats in Fayette County, WV voted, in a first reading of a new ordinance, to ban all injection wells in the county (see 2 Democrat Commissioners Ban Injection Wells in Fayette County, WV). The full commission (three members instead of two) took a final vote Tuesday night and passed the measure, making it “the law” in Fayette County (until it’s found illegal by a court). The interesting part in reading about this turn of events is how some of the left loony toons parents have brainwashed their own children into becoming socialist/communists. One little girl gave “an impassioned plea” to encourage passing the ordinance, and then ignorantly accused people from the oil and gas industry of causing the death of “our grandparents, family and friends for you to have private jets.” Talk about colossal stupidity on parade. We call it brainwashing…
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    USFWS Finally Gets Something Right, Relaxes Northern Bat Rule

    This is so unusual, it’s big news. The U.S. Fish and Wildlife Service (USFWS), an organization known for its thuggish behavior, finally got something right. It was just yesterday we were commenting on the need for Williams to begin clearing trees for the Constitution Pipeline in New York State because the Northern long-eared bat, a “threatened” species, roosts in trees in upstate NY between April and October and tree cleaning needs to be done in the months of November to March (see Williams Plans to Start Clearing Trees for Constitution Next Week). Yesterday the USFWS issued their long-awaited “final conservation rule” for the Northern long-eared bat. Environmental radicals were hoping the USFWS would bump the bat from the lower “threatened” designation to the higher “endangered” designation. That didn’t happen. Not only did they not upgrade the designation, the USFWS also loosened the rules so that the oil and gas industry (and others) clearing trees for drill pads and pipelines can legally kill a bat or two as they do so. No longer if you find a single bat does it put that area off-limits. The USFWS recognizes, officially, that the biggest threat to the bat is a spreading fungal disease, and that killing a single bat here or there is not going to affect the population of this species…
    Read More “USFWS Finally Gets Something Right, Relaxes Northern Bat Rule”

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    OH Dem House Members Introduce Bill to Restrict Injection Wells

    Three Democrat members of the Ohio State House of Representatives have just introduced a new bill, HB 422, that will clamp down on injection wells in the state, creating new hoops and regulations for injection wells. Reps. Sean O’Brien (D-Bazetta), Mike O’Brien (D-Warren) and John Patterson (D-Jefferson) want to ban injection wells in hundred-year flood plains, require GPS trackers in brine-hauling trucks, require dye be used when injecting fluids and several other measures. The Dems say they’ve worked with both the industry and environmentalist wackos in crafting the bill. We have a full copy of the bill as introduced, below. One of the provisions is that you can’t have an injection well within 2,000 feet of a…stream, river, watercourse, water well, pond, lake, other body of water (mud puddles?), railroad tracks, or the traveled portion of a public street, road, or highway. That pretty much covers it all. You just can’t have an injection well, period…
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    Europe Puts Halliburton/BH Merger Under a Microscope

    The Halliburton buyout/merger with Baker Hughes continues to be in trouble. In November 2014 MDN first reported on the deal, really Halliburton forcing Baker Hughes, to merge, with Haliburton paying an expected $34.6 billion (see Shotgun Wedding: Halliburton Forces Baker Hughes to Sell). Both companies have major operations in the Marcellus/Utica, so this merger is of keen interest for those of us in the northeast. Along the way both companies have had to sell off certain assets to please government regulators (see Halliburton/Baker Hughes Hold a Pre-Merger Garage Sale). The “marriage” was supposed to happen by the end of last year, but the U.S. Dept. of Justice isn’t satisfied. They have anti-trust concerns that, so far, Halliburton has not been able to address to DOJ’s satisfaction (see DOJ Tells Halliburton/Baker Hughes “No Deal Yet” – What’s Next?). What was a few whispers has become a chorus that the deal may be in trouble (see Whispers Turning in Chorus, Halliburton/BH Deal in Trouble). Add one more worry to the list: The European Commission has launched a “second phase” of their investigation into the deal, which is problematic for Halliburton. The European Commission says they see “serious potential competition concerns” with the deal. Halliburton/BH says, no big deal…
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    Black & Veatch Warns Electric Plants, Time to Prep for CPP is Now

    We’ve written plenty about Obama’s abominable Clean Power Plan, including an article yesterday about how the original plan was corrupted by radical environmentalists to freeze out natural gas (see How Environmentalist Radicals Ruined Obama’s Clean Power Plan). More than half of all states have joined a lawsuit to oppose this draconian “rule” (really an un-legislated law) that would force electric power plants to abandon using coal, natural gas and other fossil fuels in favor of obscenely high-priced so-called renewables. Electric rates will go through the roof, and it’s no joke there may be rolling brownouts and blackouts if fully adopted–we simply can’t generate the amount of electricity we need using renewables. Not now, not for several generations. No wonder states are suing to stop the CPP. But here’s the problem: If power generators don’t start to “comply” with the CPP now, if those lawsuits are not won for whatever reason, energy companies risk being shut down–fined out of existence. Obama and his cronies are using fear of a jackbooted government to force electric generators to comply now–and after they do, even if Obama loses in court he’s still won because he’ll say, “See, they’ve already complied, so it doesn’t make any difference that the regulation was struck down. We’ve made the U.S. a cleaner place. I did it. Me me me. Look at me.” Utter nonsense, but that’s the strategy. Black & Veatch, a huge engineering and construction firm that builds major projects for the energy industry is only too happy to help energy companies comply with the new CPP rules. Black & Veatch says, in essence, that energy companies shouldn’t sit on their hands, hoping to win the lawsuit. The time to act is now…
    Read More “Black & Veatch Warns Electric Plants, Time to Prep for CPP is Now”

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    Williams Plans to Start Clearing Trees for Constitution Next Week

    Since last October MDN has been calling on Williams, the company planning to build the 124-mile Constitution Pipeline from Susquehanna County, PA to Schoharie County, NY, to take the gloves off and go after New York State, aggressively (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). Earlier this month we re-posted an article from MDN friend Tom Shepstone and his Natural Gas Now website (always excellent, must read) that chronicles where we are at and how we got here with ongoing delays of the Constitution from the NY Dept. of Environmental Conservation (see Time for Williams/FERC to Sue NY & End Constitution Pipe Delays). In short, the DEC is now arbitrarily (for political reasons) intentionally withholding stream crossing permits that are delaying construction of the Constitution. The state is in danger of being sued by, and their authority to grant those permits taken over by, the federal government if they don’t issue those permits forthwith. Williams is attempting to advance the ball, still playing nicey nice, hoping to coax the DEC into issuing the permits. Williams has asked for and received permission (from the DEC) to begin clearing trees along the pipeline’s path, a process that will begin next week. However, rabid anti-drillers have asked NY’s out-of-control Attorney General, Eric Schneiderman, to step in and stop the tree clearing. If Williams doesn’t start the tree clearing now, they risk losing another entire construction season. There is a finite window each year you can clear trees because of nesting Northern long-eared bats, an endangered species…
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    How Environmentalist Radicals Ruined Obama’s Clean Power Plan

    In an excellent commentary article posted by the Cato Institute, a public policy research organization and “think tank,” the authors explain how President Obama’s so-called Clean Power Plan (CPP) was co-opted by radical environmentalists. Obama’s original CPP had a starring role for natural gas–the single biggest reason why the U.S. has reduced its carbon emissions over the past decade. But then the crazies got involved and Obama, bowing to pressure from the far left, threw natural gas under the bus in the final CPP. Here’s how the Cato experts explain it…
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    The Smartest Man in the Oil (& Gas) Patch: Rusty Braziel

    In 2015 MDN editor Jim Willis had the pleasure of sitting in on a one-day “State of the Energy Markets” presentation by RBN Energy, held in New York City. RBN, for those who don’t know, was founded by the former co-founder of Bentek Energy, Rusty Braziel. Rusty is a legend in the industry. He was there presenting, along with a few other seasoned pros that work for him at RBN. Great session. Jim learned a lot about the energy markets and how they work. And why they work the way they do. Rusty was a guest on Jim Cramer’s Mad Money program (on CNBC) last Friday. We have the video below. Jimmy Cramer calls Rusty “the smartest man on the oil patch” and the only person he consults with when it comes to the price of oil and gas and what’s happening. It’s high praise coming from Cramer. And well deserved. If you want to know why the price of oil (and gas) is doing what it’s doing, give this a watch and read…
    Read More “The Smartest Man in the Oil (& Gas) Patch: Rusty Braziel”

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    Pipelines – The Safest Form of Transportation in Existence

    Lately we’ve repeatedly seen references in articles about pipelines, especially those planned for New England, that make an implied threat that a pipeline located near a home or business is a threat. In some cases antis throw around reckless language like pipelines are the equivalent of unexploded bombs–just waiting to explode. It is one of the scare tactics used to smear what is, hands down, the safest form of transportation in existence. In fact, a recent announcement from the American Petroleum Institute, in commenting on proposed new rules and regulations for pipelines coming from the Pipeline and Hazardous Materials Safety Administration’s (PHMSA), points out that, “more than 199,000 miles of liquid pipelines [in the U.S.] transport about 16 billion barrels of crude oil and petroleum products per year at a safety rate of 99.999 percent.” That’s for liquids in pipelines. For gas pipelines it’s the same. Can you imagine any form of transportation with a safety rate of 99.999%? That’s like one or two accidents per year–statistically zero. And yet antis continue to create a bogyman of pipeline problems where none exist…
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    Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA

    In addition to receiving Federal Energy Regulatory Commission (FERC) approval for the Utica Access Project, Columbia Pipeline Group has just filed their full, official application with FERC for approval of the $850 million WB XPress Project, consisting of two new compressor stations, 26 miles of pipeline replacement located along existing corridors, and 2.9 miles of new pipeline in Virginia and West Virginia. The WB XPress Project will expand capacity of the Columbia Gas Transmission pipeline in the region by 1.3 billion cubic feet per day, linking Marcellus gas supplies to new markets…
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    New LNG Facility Green Lighted in Canada, Would Use Marcellus Gas

    Another LNG export facility along the East Coast of Canada has just received a green light from the Canadian National Energy Board (NEB). To be honest, this one was not previously on our radar. The facility would be built and owned by Hiranandani Group of Mumbai, India. They’re using a subsidiary company called Atlantic Coast (or AC) LNG Inc. The plan is to build the facility in Nova Scotia and (mostly) use Marcellus/Utica gas imported from the United States via the Maritimes & Northeast Pipeline (M&NE). Currently the M&NE flows from north to south, from Canada to the U.S. There is serious talk of reversing the flow. In fact, at some points for brief periods the flow already gets reversed, during peak demand periods in Canada. The NEB has granted AC LNG a permit to import up to 2.3 billion cubic feet per day (Bcf/d) of U.S. natural gas. The permit also grants them the right to export up to 2 Bcf/d from the terminal, if built. Some of the particulars…
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    Repsol Not Happy with Spectra’s Atlantic Bridge, Pipeline Reversal

    A number of Canadian LNG export facilities being planned for eastern Canada are dependent on obtaining cheap, abundant Marcellus and Utica Shale gas from the U.S. Today we highlight news of a new (to us) entrant into the LNG race, AC LNG (see our companion story). How will Marcellus and Utica Shale gas get to the northern reaches of Canada? Via the Maritimes & Northeast Pipeline LLP (M&NE), a pipeline that stretches from the Boston area all the way to the northern reaches of Nova Scotia. Historically the M&NE pipeline has brought natural gas south, from Canada to the U.S. One of the sources of the gas traveling south on the M&NE is the Canaport LNG facility in New Brunswick–which imports LNG and regassifies it and sends it out over the M&NE. Repsol, a huge Spanish oil company, is the owner of the Canaport facility. So it’s no surprise that Repsol is sounding the alarm and asking the question: What happens to the gas we send south if M&NE reverses its flow and begins sending gas north?…
    Read More “Repsol Not Happy with Spectra’s Atlantic Bridge, Pipeline Reversal”

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    PA DEP Issues “Final” New Drilling Regulations; Industry Pushback

    PA DEPJohn Quigley, the Secretary of the Pennsylvania Dept. of Environmental Protection (DEP), yesterday released a finalized version of proposed new oil and gas drilling regulations, otherwise known as Chapters 78 and 78a. A copy was sent to the Environmental Quality Board (EQB) for their required review which is planned for Feb. 3. The entire set of revised/new regulations (copy below) will then get published in the Pennsylvania Register and become final. Both the Marcellus Shale Coalition (MSC), representing unconventional drillers, and the Pennsylvania Independent Oil & Gas Association (PIOGA), representing conventional drillers, have come out against the new regulations. The MSC says the new regulations will cost the industry $2 billion annually without a corresponding benefit for the environment or safety, and PIOGA minces no words when it says the four-year revision process “has been flawed to the point of being fraudulent”…
    Read More “PA DEP Issues “Final” New Drilling Regulations; Industry Pushback”