Ohio

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    Mountaineer NGL Storage Facility in OH Under Construction

    We spotted a story that makes reference to an ethane storage facility currently under construction in Monroe County, OH. That got our attention. The story said that Energy Storage Ventures has plans to begin storing ethane in the underground facility by the end of 2018. Who’s Energy Storage Ventures? We went looking and discovered it’s another name for the Mountaineer NGL Storage project that we’ve been covering. In April 2016, Mountaineer NGL Storage (aka Energy Storage Ventures) announced an open season for a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica). The open season was a success, and in October 2016, Mountaineer completed a test well in the salt formation (see Mountaineer NGL Storage Test in OH a Success, Construction in 2017). But the last word we had on the project, in April of this year, said that construction had not yet begun due to problems with red tape (see Mountaineer NGL Storage in Monroe County, OH Caught in Red Tape). Yet this new story says, “contractors continue working to build the caverns required for storing up to 168 million gallons of ethane and other natural gas liquids more than one mile underground.” Which we take to mean there is active work going on at the site. That, for us, is new news–that the Mountaineer NGL Storage facility is *currently* under construction…
    Read More “Mountaineer NGL Storage Facility in OH Under Construction”

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    Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill

    While reviewing documents filed with the Federal Energy Regulatory Commission (FERC) for the Energy Transfer Rover pipeline project, we came across a letter filed by ET yesterday. The letter (full copy below) addresses the recent “inadvertent return” (i.e. major leak) of 2 million gallons of drilling mud in a swamp next to the Tuscarawas River (Stark County, OH). Following that leak and other leaks, FERC told Rover to stop any new underground drilling not already under way (see FERC Slaps Rover Pipeline with Stop Drilling Order). In yesterday’s letter, Rover says they have hired a new firm, GeoEngineers, to review all of the plans and data around drilling horizontally underground (horizontal directional drilling, or HDD) in locations where you can’t dig a trench. Rover is also posting GeoEngineers personnel at each HDD location, to help supervise HDD activities. But wait, there’s more! Rover is hiring extra watchers at each HDD location to watch for the first signs of, the first bubble, that indicate drilling mud isn’t staying underground where it belongs. Given all of what Rover is doing (there is more, read it in the letter), Rover then goes on to ask FERC, can Rover please please please drill in two spots where all of the equipment is ready to go? Those spots are Captina Creek in Belmont County, OH, where Rover wants to complete the Clarington lateral, and Middle Island Creek in Tyler County, WV, where Rover wants to complete the Sherwood lateral. Rover argues it will do more harm to the environment to pull down erosion control devices and move equipment out and back in, than if they just went ahead and did the work now. Will FERC agree?…
    Read More “Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill”

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    Private Historic Group Wants Rover to Pay $1.5M/Yr, Rover Says No

    We’re not sure we have the full, 100% story, but we have enough of it to have some righteous anger. In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). The house was not yet on the list of Historic Places, but was on a list of properties under consideration. FERC says Rover should have reported their decision to demolish the house, which landed Rover in hot water with FERC and the Advisory Council on Historic Preservation. How do you fix problems like this one? You pay–of course. Rover agreed to pay out $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office. A total of $1 million is for preservation work in the 18 counties crossed by the pipeline. The rest of the money will be used for projects across the state” (see Rover Pipeline Paying $2.3M for Knocking Down Historic OH House). So Rover didn’t pay a fine. Instead, they paid hush money. A shakedown, with the money going to a PRIVATE nonprofit organization. Yes, the Ohio History Connection Foundation is a private non-profit organization. And they got $2.3 million at the direction of the federal government. Now the history buffs want more. To be precise, they say Rover owes them $1.5 million per year for the next five years. Why? Apparently it’s not related to knocking down the “historic” house, but is some sort of agreement that Rover made with them to cover whatever other damage is done to historic locations during construction of the pipeline. We call it an elaborate shakedown. “Those pipeline companies have more money than God. Let’s grab some of it.” Ohio History Connection says Rover has missed its first payment, so they went whining to FERC. Rover is disputing Ohio History Connection’s claim that it owes them one red cent more… Read More “Private Historic Group Wants Rover to Pay $1.5M/Yr, Rover Says No”

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    Youngstown Antis Seek to Legalize Anarchy with 7th CELDF Petition

    A nation without laws is not a nation. Virulent anti-drillers in Youngstown, OH have now tried six times to pass a so-called Community Bill of Rights ballot measure–and have failed all six times, the most recent last November (see Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time). The local yokels are pawns, useful idiots, for an ultra-radical group from Pennsylvania called the Community Environmental Legal Defense Fund (CELDF). The CELDF is behind dozens of such efforts, none of which has been successful. The CELDF is also behind a number of bizarre lawsuits–like the one claiming that an ecosystem is a “person” with rights (see CELDF Loses Case to Represent Ecosystem – Turtles Disappointed). The CELDF has the local anti yokels in Youngstown amped up again–circulating a seventh petition for a ballot measure. But this time is different. In addition to the usual no fracking, no pipelines pablum, this petition has language that makes it legal to break the law. You read that right. If the ballot measure were to pass, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. Apparently the brains of the locals are so fried, they don’t realize that if everyone just decides which laws they want to obey or disobey, you soon descend into Lord of the Flies. Mob rule. Anarchy…
    Read More “Youngstown Antis Seek to Legalize Anarchy with 7th CELDF Petition”

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    Turns Out OEPA & Columbus Dispatch Were Lying – Rover NOT Fined

    Early last week MDN brought you the news that Energy Transfer’s Rover Pipeline project has been fined by the Ohio Environmental Protection Agency (OEPA) for $431,000 for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday” (see Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues). Based on OEPA’s report to the Federal Energy Regulatory Commission, FERC then told Rover to stop any new horizontal drilling underground (see FERC Slaps Rover Pipeline with Stop Drilling Order). But at the end of last week, a spokeswoman for Energy Transfer told the ace reporters at Natural Gas Intelligence that Rover has NOT been fined by the OEPA (see ET Disputes Ohio EPA Action on Rover, Says there Is No $431K Fine), which led us to say in our opening: “Somebody somewhere isn’t telling the truth.” We now know who didn’t tell the truth: the OEPA and the Columbus Dispatch… Read More “Turns Out OEPA & Columbus Dispatch Were Lying – Rover NOT Fined”

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    Why Rover Pipe is a Big Deal & How it Affects Natl NatGas Prices

    As MDN began reporting last week, Energy Transfer’s Rover Pipeline, a $4 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, has quickly become a soap opera. MDN brought you the news that Energy Transfer’s Rover Pipeline project has been fined by the Ohio Environmental Protection Agency (OEPA) for $431,000 for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday” (see Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues). Based on OEPA’s report to the Federal Energy Regulatory Commission, FERC then told Rover to stop any new horizontal drilling underground (see FERC Slaps Rover Pipeline with Stop Drilling Order). And last Friday, we told you that Energy Transfer is claiming they’ve not been fined by the OEPA (see ET Disputes Ohio EPA Action on Rover, Says there Is No $431K Fine). Oy vey! Gas traders have taken notice of this unfolding drama, and the news surrounding Rover has actually moved the price of gas up. Which seems somewhat incredulous. You mean, a single pipeline has the power to make the national price of natural gas go up or down? How can that be?! Here’s a statistic you don’t often read: Rover Pipeline, when it’s fully functional, will move 14% of all the gas produced in the Marcellus/Utica (using today’s production numbers). That is an incredible statistic–and it has the power to move the price of natural gas–up or down… Read More “Why Rover Pipe is a Big Deal & How it Affects Natl NatGas Prices”

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    CORNballs Strike Again, File Lawsuit to Stop NEXUS Pipeline

    A group of landowners in Ohio calling themselves the Coalition to Reroute Nexus (CORN), whom we affectionately call CORNballs, have filed a lawsuit in court against the NEXUS pipeline project. Not to actually reroute NEXUS, but to kill it. To stop it. The landowners are asking a federal court to block the Federal Energy Regulatory Commission (FERC) from allowing the project to proceed–which of course is not going to happen–and to legally bar the NEXUS Gas Transmission project from building the pipeline. Which has been the aim of the CORNballs from the beginning–contrary to the party line that they just want it rerouted around them. The CORNballs seem to be in league with antis in the City of Green, OH, who recently voted to give $100,000 of taxpayer money to high-priced Cleveland lawyers to try and stop NEXUS (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). Green also gave CORN $10,000, which no doubt is helping fund CORN’s legal effort to stop NEXUS… Read More “CORNballs Strike Again, File Lawsuit to Stop NEXUS Pipeline”

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    Downtown Cleveland Now Heated with 100% Utica/Marcellus Gas

    Sometimes mainstream media gives the Marcellus/Utica industry a gift–and doesn’t even realize it. The Cleveland Plain Dealer has a story in today’s edition about the change in fuel source for downtown Cleveland. Cleveland Thermal began supplying steam to heat buildings in downtown Cleveland in 1894. The first fuel they burned? Wood. Later came coal. And today? The point of the story is that Cleveland Thermal is now using a new plant that is 100% natural gas-fired to create the steam used to heat 94 downtown Cleveland buildings. We haven’t been to Cleveland in a long time, but we have to guess 94 buildings in downtown is likely most of downtown. And it’s all being heated with Utica/Marcellus shale gas. Here’s a truly fascinating factoid: Cleveland Thermal (now owned by Corix Group) estimates it will take around 1.3 billion cubic feet (Bcf) of gas per year to produce the steam that heats those 94 buildings. We ran a story in March 2016 about the amount of natural gas Cabot Oil & Gas is getting from their average Marcellus Shale well (see Go Big or Go Home: Cabot O&G Wells Average EUR of 27 Bcf). Be prepared to have your mind blown. When Cabot drills a new well, on average, over the life of that well (perhaps 20 years), Cabot will get 27 Bcf. So one, single well drilled by Cabot in Susquehanna County, PA could supply ALL of the heat for ALL of downtown Cleveland for 20 years. Behold the power of shale gas… Read More “Downtown Cleveland Now Heated with 100% Utica/Marcellus Gas”

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    81% of 2016 Ohio Valley Investment Came from One Natgas Project

    Artist’s rendering of Lordstown Energy Center – click for larger version

    We spotted a story that seemed to us like the Ohio Valley was doing some justified bragging about investment in the region during 2016. Recently, the “Youngstown/Warren, Ohio Economic Development 2016 Report Card” was released. The Report Card was a joint effort of the Youngstown/Warren Regional Chamber of Commerce, OhioMeans-Jobs, the cities of Warren and Youngstown, the Youngstown Business Incubator and Youngstown State University. The Report Card found that 111 projects led to a whopping investment of $1.1 billion–in 2016! Or at least you can say, that much money was committed in 2016. Some of the actual spending was made last year, some this year, likely some over the next several years. But hey, let’s not split hairs. This is an achievement to crow about. But when you look at the project list, one project accounts for 81% of the total–the Lordstown Energy Center. The $890 million Lordstown Energy Center is an electric generation plant planned for Lordstown (Trumbull County), OH that will be powered with Utica Shale gas. The project won village approval in the summer of 2015 (see Lordstown $800M Gas-Powered Electric Plant Gets Village Approval). It then won state approval in the fall of 2015 (see Lordstown $800M Gas-Powered Electric Plant Gets OH State Approval). The project broke ground in June 2016 (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). Our point: Without deregulated electric markets in Ohio, and without the Utica and Marcellus Shale, the Ohio Valley investment last year would have been, at best, $220 million, not $1.1 billion… Read More “81% of 2016 Ohio Valley Investment Came from One Natgas Project”

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    ET Disputes Ohio EPA Action on Rover, Says there Is No $431K Fine

    Somebody somewhere isn’t telling the truth. Earlier this week MDN brought you the news that Energy Transfer’s Rover Pipeline project has been fined by the Ohio Environmental Protection Agency (OEPA) for $431,000 for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday” (see Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues). Based on OEPA’s report to the Federal Energy Regulatory Commission, FERC then told Rover to stop any new horizontal drilling underground (see FERC Slaps Rover Pipeline with Stop Drilling Order). But a recently filed report with FERC for the Rover project indicates only three spills and takes the tone it’s no big deal. And, a spokeswoman for Energy Transfer told the ace reporters at Natural Gas Intelligence that Rover has not been fined by the OEPA…
    Read More “ET Disputes Ohio EPA Action on Rover, Says there Is No $431K Fine”

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    WV/OH Senators Intro Bill to Study Appalachian Ethane Storage Hub

    Sen. Shelley Moore Capito

    Both West Virginia U.S. Senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat), along with Ohio Sen. Rob Portman, have introduced and co-sponsored a bill to study if and how an ethane storage hub can be constructed in the Marcellus/Utica region. According to Brian Anderson, director of WVU’s Energy Institute, without ethane storage (and pipelines) the Marcellus/Utica region risks seeing its abundant ethane leave the area, mostly heading to the Gulf Coast. We need that ethane here, in our area. Others have also taken up the cause, making the point that West Virginia, Ohio, Pennsylvania and Kentucky need to band together to build such a project (see WV, OH, PA, KY Should Cooperate on $10B NGL Storage Hub). You mean, set aside competition between states and cooperate? Yes! Why? Such a project will cost an estimated $10 billion–far more than a single ethane cracker project. No one state can do it on its own. And that’s where this new bill comes in. The bill proposes a study be done by the Departments of Energy and Commerce within the next two years to analyze potential locations based on favorable geology, the economic feasibility and benefits of the project, infrastructure, and proximity to production sites and potential industrial consumers…
    Read More “WV/OH Senators Intro Bill to Study Appalachian Ethane Storage Hub”

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    FERC Slaps Rover Pipeline with Stop Drilling Order

    You can’t see we didn’t warn Rover Pipeline. In our story yesterday about the Ohio EPA’s frustration with Rover over regular spills of drilling mud (and other violations), we pointed out that the OEPA’s language is “Not good news for Rover, when one of the main state regulators (that can stop the project) is leveling criticisms like that” (see Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues). We also said, in the last sentence of that post, “Rover needs to get this situation under control before an emergency stop work order is slapped on them.” Such an order, more or less, has now been issued by the Federal Energy Regulatory Commission (FERC). Yesterday FERC sent a letter (copy below) to Rover telling the pipeline it can no longer drill horizontally underground for the pipeline in some locations–until it complies with certain measures outlined by FERC and gets FERC staff sign-off every step of the way. In other words, Rover has likely just been delayed–due to its own haste and by not displaying the proper contrite attitude toward the OEPA. No one to blame but themselves…
    Read More “FERC Slaps Rover Pipeline with Stop Drilling Order”

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    Rex Energy 1Q17 Full Update – Swings to Black, Drilling Picks Up

    In April, Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), issued an operational update (see Rex Energy 1Q17: Production Drops 8.5%). Earlier this week the company issued a full 1Q17 update. What does it show? Rex swung from losing $62 million in 1Q16 to making $2.1 million in 1Q17–quite a turnaround! This update also includes a fuller look at the drilling that did happen in 1Q17, and what the company plans for the balance of 2017. In Rex’s Legacy Butler Operated Area (Butler County, PA), the company has begun drilling 4 wells on a single pad and plans to have them completed and online in 3Q17. In Rex’s Moraine East Area (also Butler County) the company drilled 7 gross (3.3 net) wells and completed 4 gross (1.4 net) wells in 1Q17. In addition, Rex had 12 gross (5.5 net) wells awaiting completion at the end of 1Q17. In Rex’s Warrior North Area (Carroll County, OH), the company plans to drill 12 gross (10.2 net) wells by the end of 2017, with most of them not going online until 2018. Below is the full update, along with select portions of the earnings call where Rex’s CEO shares some interesting insights… Read More “Rex Energy 1Q17 Full Update – Swings to Black, Drilling Picks Up”

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    Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues

    Rover mud spill in April

    The Ohio Environmental Protection Agency (OEPA) is frustrated with Energy Transfer and its management of constructing the ~$4 billion Rover Pipeline through the state. As MDN reported in April, Rover spilled some 2 million gallons of non-toxic drilling mud (i.e. bentonite) in three separate incidents (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp and Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid). We know that the biggest spill happened in Stark County, and another sizable spill in Richland County. It appears spilling some mud wasn’t the only environmental violation. The OEPA has just assessed a $431,000 fine against Energy Transfer for “18 incidents involving mud spills from drilling, stormwater pollution and open burning at Rover pipeline construction sites have been reported between late March and Monday.” The latest mud spill happened on Monday–200 gallons in Harrison County. OEPA Director Craig Butler said, “All told, our frustration is really high. We don’t think they’re taking Ohio seriously…Normally when we have…a series of events like this, companies respond with a whole lot of contrition and whole lot of commitment. We haven’t seen that. It’s pretty shocking.” Not good news for Rover, when one of the main state regulators (that can stop the project) is leveling criticisms like that… Read More “Ohio EPA Slaps Rover Pipe with $431K Fine for Spills, Other Issues”

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    Seneca County, OH – Where All Forms of Energy Come Together

    Generally speaking, the western side of Ohio is seeing a lot of activity with new solar and wind installations. And the eastern side of the state is seeing a lot of activity with shale drilling and natural gas pipelines. But there is one county, Seneca County (slightly left of center, in the northern part of the state) where both renewable projects like solar and wind, and fossil fuel projects like pipelines, are both active. And that means landowners in Seneca County are being bombarded with offers from solar, wind, pipelines and electric lines. Some sage advice from the Ohio Farm Bureau Federation for landowners: hire a lawyer before you sign anything… Read More “Seneca County, OH – Where All Forms of Energy Come Together”

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    40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout

    In April, MDN brought you news of an effort underway in Ohio to tax Ohio ratepayers $5.4 billion and give that money to FirstEnergy to prevent some of its nuclear power plants from closing (see OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants). Given stiff regulations, nuke plants face stiff competition in the free marketplace. Natural gas-fired plants are cheaper to build and operate, and deliver cheaper electricity. Since nukes can’t compete in the free and open market, FirstEnergy wants to rig the game, all in the name of “energy diversity” and keeping their nuke plants open (and investors happy). Rate-paying Ohioans get screwed in the process. Some 40 groups have banded together for form the Coalition Against Nuclear Bailouts. Some are big groups, some are individuals. They are diverse. For example, the far-left AARP (disgusting organization) is in the coalition. So too is the Ohio Oil and Gas Association (OOGA) and the National Association of Royalty Owners (NARO). Plus some pastors of churches, and local politicians. Feels kind of weird to support an organization with groups like the AARP in it. But perhaps the enemy of my enemy is my friend. At least in this case. It is, truly, a nonpartisan (or should we say bipartisan) coalition that has risen up to fight the nuclear bailout… Read More “40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout”