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Buckeye Partners Expanding MI/OH Refined Products Pipeline, Again

West to East Project Map
West to East Project Map – click for larger version

Buckeye Partners is a publicly traded master limited partnership (MLP) that owns and operates 6,000 miles of pipeline. One of those pipelines is the Michigan/Ohio refined products pipeline, which we reported on in April 2015 (see Buckeye Partners Expanding MI/OH Refined Products Pipeline East). At that time Buckeye was pushing its Michigan/Ohio Pipeline Expansion Project to expand the pipeline for “refined petroleum products” (things like gasoline, kerosene and heating oil) to run it from Woodhaven and Detroit, Michigan, and from Toledo and Lima, Ohio, to destination points in both Ohio and Western Pennsylvania. By all accounts the initial expansion was a success, because Buckeye is now conducting an open season for the second phase of the expansion project. Why talk about a gasoline/heating oil pipeline? Because it’s possible that some of the oil that gets refined into gas and heating fuel flowing through this pipeline comes from the Marcellus/Utica…
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DTE Energy Wants Ratepayers to Pay if NEXUS Pipe is Unprofitable

Map_NEXUS_Full
NEXUS Pipeline Project – click for larger version

DTE Energy is a Detroit-based energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan, and a natural gas utility serving 1.2 million customers in Michigan. DTE’s businesses include power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading. DTE has its fingers in a lot of energy pies. DTE is one of the main customers for the 255-mile, $2 billion NEXUS interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada (see Spectra Energy Files Formal FERC Application for NEXUS Pipeline). DTE is also one of the backers/partners in NEXUS–providing money for the project. Spectra Energy will be the managing partner that actually builds and maintains NEXUS. DTE has asked Michigan regulators for a guarantee that it can pass along NEXUS costs to gas and electric ratepayers IF the utility’s gas supply costs from NEXUS prove to be unprofitable. That doesn’t sit well with many people, including Michigan’s Attorney General…
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FERC Seeks Input on ET Rover Pipeline – MI Poll Shows 91% Favor

The Federal Energy Regulatory Commission (FERC) wants to know what landowners and residents along the path of the proposed Energy Transfer Rover pipeline think about the project. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers. The pipeline will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The bulk of the pipeline would run through Ohio (see ET Rover Pipeline Launches New Website, Updated Route Maps). We say ET Rover is “for the children” because the pipeline will generate $91 million in taxes for local schools–in its first year alone (see For the Children: ET Rover Pipeline $91M in School Taxes 1st Year). We spotted a story in a Michigan newspaper about the project. The story says FERC is eliciting feedback until April 11 (be sure to comment!). The story is running a poll of its readers asking them if they support or oppose the project. The results aren’t even close. Some 91% (at the time we wrote this) support the project. See a copy of the poll results below…
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Democrats in Michigan Introduce Bill to Ban ALL Fracking

What is it with Democrats? Are they congenitally anti-drilling? Last week Michigan Democrats introduced a bill that would ban all hydraulic fracturing in the state. But just in case fracking still happens, the bill empowers local municipalities regulate it, and the bill requires wells to be at least a mile away from “sensitive locations” like schools, hospitals, homes and public parks. That is, don’t bother drilling anywhere. Michigan Dems may want to visit Pennsylvania where there are schools with their own gas wells sitting right outside of classroom windows, and hospitals that allow drilling on their property. There have been no ill health effects, and those organizations have reaped millions of dollars in revenue. It seems Dems only want money to slide through their fingers first (the way they derive and hold on to power). Tell your local Michigan House member to vote no on this idiotic bill…
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Spectra Energy Files Formal FERC Application for NEXUS Pipeline

Pop the cork on the champagne bottle! Last Friday Spectra Energy and its partners filed their full, formal application with the Federal Energy Regulatory Commission (FERC) to get the federal agency’s approval for the NEXUS Gas Transmission pipeline project. The NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. It is a critically needed pipeline to move Utica and Marcellus Shale gas from an over-saturated market in the northeast to markets in the Midwest and Canada. Below is the official good news press release from Spectra Energy announcing the filing…
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OH/MI Forms New Group to Support Rover & NEXUS Pipelines

build the pipelineMay we paint with broad brush-strokes for a moment? It’s been our observation over the years that anti-drillers (and anti-pipeliners, and anti-fossil fuelers) are typically liberal Democrats who have bought into the notion that (a) mankind is catastrophically heating up ole Mother Earth, and (b) they (the lib Dems) are uniquely qualified to run your life for you by choosing your energy sources. They love to tell you how to live your life–i.e. deny you freedom to live your life they way you want to, including selecting your own energy sources. It’s also been our observation that many (not all, but many) of the most vocal antis are hippie retreads who haven’t been this jazzed about a “cause” since the end of the Vietnam war. Yes that’s a very broad generalization and not true in all circumstances–but it’s more true than not. On the other side of the isle, when we’ve attended meetings about fracking and pipelines and FERC scoping hearings–we’ve noticed landowners and small business owners and pro-drillers are the “gray heads with hats” and blue jeans in the crowd. Typically quiet. Perhaps a bit uncomfortable that they’re in the same room with a largely lawless bunch of mouthy antis. The antis tend to form all sorts of groups with innocuous sounding names (Riverkeeper, Mountainkeeper, Trout, Clean Air, Community Rights, etc.). Pro-drillers and landowners? They don’t form groups so much. They don’t protest so much. They’re too busy working their fingers to the bone–paying for the welfare state anti-drillers avail themselves of! So when a group of pro-energy people DO form a group–that’s news. Such a group has formed in Ohio and Michigan in order to support two much-needed pipeline projects–Energy Transfer’s Rover Pipeline and Spectra Energy’s NEXUS Pipeline…
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Univ of Michigan Final Report on Fracking: It Can be Done Safely

MI ReportTwo years ago MDN reported on a University of Michigan research project called the Hydraulic Fracturing in Michigan Integrated Assessment (see Univ of Michigan Reports Explore Future of Fracking in MI). The aim of the two-year project is to help guide policy on shale drilling in the state. It actually ended up taking three years, but the final report was just released (full copy embedded below). The report does not advocate for any particular position, pro or anti-fracking. It simply reports findings and, you know, actual science. Let the policy makers use the information to formulate rules and regulations. Michigan, which does contain shale layers, including the Utica, that may one day be commercially tapped, stands in stark contrast to New York where politics got involved and corrupted the process. In Michigan the science determines the outcomes–but sadly, not in New York. The Michigan study shows that with strict environmental regulations, fracking can be done safely…
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Michigan Succeeds in Shaking Down Chesapeake for Measly $25M

The ShakedownThe shakedown is complete. In June 2012 Reuters tried to stir up trouble against Chesapeake Energy by broadcasting “leaked” (Watergate anyone?) emails that somehow magically appeared on the Reuters doorstep that supposedly show Chesapeake trying to collude with Encana Energy to keep the price of Michigan state land oil and gas leases artificially low (see Did Reuters Break the Law with Latest Chesapeake Story?). Eventually Michigan Attorney General Bill Schuette filed charges against Chesapeake, even though the federal government investigated and didn’t find anything worth pursuing. Schuette put his reputation on the line and was hell-bent to ensure he got something/anything out of Chesapeake. Schuette finally has a settlement–for a measly $25 million. It likely cost his department more than that to pursue Chesapeake. But, Schuette’s shakedown for $25M lets him save face, and it lets Chesapeake move on from this sham charge in Michigan…
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Buckeye Partners Expanding MI/OH Refined Products Pipeline East

Buckeye Partners, headquartered not in Ohio but in Houston, TX, launched an open season for an expansion of a pipeline that we somehow missed, on January 30. Called the Michigan/Ohio Pipeline Expansion Project, the expanded pipeline project is for flowing “refined petroleum products” (things like gasoline, kerosene and heating oil) and will run from Woodhaven and Detroit, Michigan, and from Toledo and Lima, Ohio, to destination points in both Ohio and Western Pennsylvania. Buckeye reports the open season is now closed and was successful and they plan to move forward with expansion plans, slated to be complete by the second half of 2016. Does the expansion include building any new pipeline?…
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Michigan AG (Unbelievably) Files More Charges Against Chesapeake

Dang if the Attorney General Bill Schuette from Michigan isn’t determined to shake down Chesapeake Energy for a boatload of money. Apparently Schuette’s political future rests on being able to get something out of Chesapeake, who so far has been unwilling to bend over and take it. We’re referring, of course, to Michigan’s use of illegally obtained emails that allegedly show some sort of collusion between Chesapeake and Encana to obtain state land leases for drilling at a low price. AG Schuette has filed yet more charges in the case. The feds investigated and found nothing (see Feds Clear Chesapeake & Encana in Collusion Case, Michigan Next?). Usually a state will go along with a finding by the federal Justice Department. But not Schuette from Michigan. He has his heart set on grabbing a few hundred million from the “deep pockets” of oil and gas companies…
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Chesapeake Says Michigan AG is Cherry Picking Emails in Case

Chesapeake Energy is, much to the consternation of Michigan’s overzealous Attorney General Bill Schuette, not rolling over, playing dead, nor coughing up big bucks in payoff money over alleged “collusion” to suppress auction prices for gas leases (see Michigan AG Continues Case Against Chesapeake for Lease Collusion). The case Michigan has built hinges on arguably illegally-obtained internal emails from Chesapeake, obtained by the Reuters news service under a still-unaccounted for method (see Did Reuters Break the Law with Latest Chesapeake Story?). Chesapeake says AG Schuette is, in essence, cherry picking and disclosing a few emails to cast the company in a bad light…
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Michigan AG Continues Case Against Chesapeake for Lease Collusion

Apparently Michigan Attorney General Bill Schuette wants his pound of flesh out of Chesapeake Energy. You may recall the case of Chesapeake and Encana being accused of colluding to suppress the price of land being auctioned for drilling leases in Michigan. Reuters claimed private, internal company emails with possibly damning information somehow landed in their lap from the email fairy (see Did Reuters Break the Law with Latest Chesapeake Story?)…
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Reuters Smiles: MI Criminal Court to Charge Chesapeake & Encana

smiley faceIn June 2012 MDN brought you the story that of possible collusion between Chesapeake Energy and Encana over lease offers in the state of Michigan. At the time we pointed out that the Reuters news service had “obtained” confidential emails that supposedly show such collusion, and we asked the question, how did Reuters come by those emails (see Did Reuters Break the Law with Latest Chesapeake Story?). It was obvious Retuers was trying to take down Aubrey McClendon and by extension Chesapeake Energy. Aubrey is now gone from Chesapeake and Reuters’ favorite corporate raider, Carl Icahn, now pulls the strings of the new CEO, Doug Lawler.

Not long after the whole story burst onto the scene, Encana did their own internal investigation and cleared themselves (see Encana Says Investigation Shows No Collusion with Chesapeake). That was Sept. 2012. Reuters is now back and announcing that the attorney general in Michigan will now file, two years later, criminal charges against both Chesapeake and Encana on March 19 in Michigan state court. We’re sure Reuters is smiling…
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Univ of Michigan Reports Explore Future of Fracking in MI

The University of Michigan is in the midst of a two-year project called the Hydraulic Fracturing in Michigan Integrated Assessment. The project, which ultimately hopes to help guide policy on shale drilling in the state, is being overseen and under the umbrella of the Graham Sustainability Institute at U-M (a potential red flag if you ask us). The first round of analysis is now done. Yesterday, researchers released seven technical reports–think of them as tutorials or backgrounders or “get the facts established” reports. In our brief scan they look helpful and unbiased (we’ve gathered all the reports together in one document, embedded below so you can read or download it).

The upshot from the reports? Michigan has lots of shale gas, particularly in the Utica-Collingwood shale layer, that may one day be mined. However, Michigan’s shale gas is located deep, and with the current low price of natural gas and the abundance of gas in shallower plays (like the Marcellus), Michigan won’t see significant drilling for a long time, which gives policy makers time to “get it right” when it comes to regulations…
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NRDC Launches Lawyers to Oppose Fracking in 5 States

You have to say one thing about the increasingly shrill Natural Resources Defense Council (NRDC)—they don’t let an issue they can demagogue for money go to waste. For the NRDC, there’s money to be made in opposing fracking. Warning to the drilling industry: The NRDC is well-funded and is gunning for you. Their latest offensive? They’ve created something called the Community Fracking Defense Project whereby they’ll launch lawyers out into any township across New York, Pennsylvania, Ohio, Illinois and North Carolina to assist that town in opposing fracking. (Sorry West Virginia, you aren’t important enough for the NRDC to spend time and money on.)

The fight over fracking is about to go very local, and get very nasty, with the NRDC pumping millions into the effort to make mischief.

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