Contractor Sues Risberg PA-to-OH Pipeline for Nonpayment $35M

In March 2019 MDN brought you the news that Wood Group had been awarded a $34 million contract to build 28 miles of the 60-mile Risberg Pipeline from Crawford County, PA to Ashtabula County, OH (see Wood Wins $34M Contract to Build PA to OH Risberg Pipeline). The portion Wood built was new “greenfield” pipeline. The rest of the pipeline (32 miles) already existed and was repurposed.
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Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin and the Permian. The Marcellus is part of the company’s “legacy” systems that doesn’t get as much love (and money). Last week the company issued its 2Q update. The company’s Utica operation was the star performer in 2Q, increasing flows through Summit’s system by 60%.
FirstEnergy is in the middle of an excrement storm. The company’s former subsidiary FirstEnergy Solutions (now called Energy Harbor) allegedly paid $60 million in bribes to Ohio House Speaker Larry Householder and several of his associates to gain their assistance passing the hugely unpopular House Bill 6 (see
We love a good supply chain story. Crozier Welding, founded in 1980, started by servicing coal mining operations. Eventually, the company, located in Coshocton County, transitioned from coal to welding pipelines for the oil and gas industry. Today the focus of the company is on welding pressure vessels (holding tanks) for the shale industry. The company is moving and expanding, thanks to an abundance of work coming from the M-U.
We’re pretty certain Ohio Gov. Mike DeWine (RINO) doesn’t read MDN, but we’re glad to see he took our advice from yesterday when we said he’s “stupid if he vetoes the bill to repeal House Bill (HB) 6. Does he not realize he will be given the political equivalent of an anal exam to see if his palms were greased by FirstEnergy too?! The only reason the bill passed was bribery. It’s poisoned. It must be overturned.” A day after DeWine expressed support for the bribe-ridden HB 6 that became law when he signed it last year, DeWine reversed course and now says he supports repeal of that terrible law.
“Be sure your sin will find you out” (Numbers 32:23). That phrase needs to be tattooed on the side of FirstEnergy’s headquarters because their sin of (allegedly) bribing Ohio lawmakers to pass a highly unpopular bailout of the company’s economically failing nuclear power plants has certainly found them out (see
Just yesterday MDN told you about one expert’s view that there won’t be one massive NGL storage hub built in the Marcellus/Utica, but a number of smaller hubs (see
Montage Resources, the new name for the merger of Eclipse Resources with Blue Ridge Mountain Resources which happened more than a year ago, announced yesterday it is selling its “non-core” wellhead gathering infrastructure (pipelines) in the Ohio Utica condensate development area to an unnamed international buyer for $25 million. The transaction is expected to close by the end of this year.
We told you that the law passed in Ohio (House Bill 6) granting FirstEnergy (now called Energy Harbor) $1 billion in corporate welfare from ratepayers, destroying the fair playing field for natgas-fired electric plants in the bargain, stunk to high heaven. We told you that the entire thing was corrupt (see
NEXUS Pipeline, a $2.6 billion, 255-mile interstate pipeline that runs from Ohio into Michigan, has been fully online since October 2018 (see
We’re always suckers for railroad story. Not sure why, but we love reading about short line railroads that do well because of the shale industry. We spotted such a story about the 48-mile short line Belpre Industrial Parkersburg (BIP) Railroad between Parkersburg, West Virginia, and Relief, Ohio (via Marietta). BIP expects to double its traffic over the next year to 18 months thanks to the Marcellus/Utica Shale industry and the business it’s generating.
PTT Global Chemical yesterday issued a press release to say its major partner and financial backer for a planned $10 billion ethane cracker facility in Belmont County, OH–South Korea’s Daelim Chemical USA–has decided to pull out of the project. PTT said it remains committed to the project and will look for a new partner.
How much of an effort is “enough” when a surface landowner in Ohio tries to locate the owner(s) of the belowground mineral rights under his or her land using the Dormant Mineral Act (DMA)? Is it enough to search the public record archive in the county where the land is located? The Ohio Supreme Court recently ruled in a case to say no, it’s not enough to run a quick search in one county when attempting to locate mineral rights owners.
Do you remember the child’s game called “Simon Says”? That’s what we were thinking when we read about a lawsuit in Ohio by landowners against a group of shale drillers. The lawsuit, initiated by several landowners in Belmont County, OH, claims the drillers drilled too deep–into the Point Pleasant rock layer–when the leases signed only mention the Utica rock layer. The lawsuit, which is seeking class action status, claims “unjust enrichment” by the drillers.