M-U Gas Now Travels to Dawn Hub in Canada via Rover Pipeline

Last Thursday, May 24, Energy Transfer Partners requested (frankly, begged) the Federal Energy Regulatory Commission (FERC) to approve final startup for the rest of Rover Pipeline not yet flowing–by June 1st. ET has contracts to honor and they promised shippers the full pipeline would be up and running by June 1st. ET requested permission to start up the “Majorsville Lateral, Supply Connector Line B, and Mainline B between CS1 and CS2 and between CS3 and the terminus,” along with a request to begin flowing on the “Burgettstown Lateral.” Note that some of the project has two pipelines, side by side (the Mainline and Supply Connector). ET asked that the second pipes in both cases be allowed to start up, along with the Majorsville and Burgettstown Laterals (see the map). ET got some of what it wanted–everything but permission to start up the laterals–yesterday from FERC. With the startup of Mainline B and Supply Connector B, ET says the Rover Pipeline project is now capable of flowing the full 3.25 billion cubic feet per day of natgas all the way to the Dawn Hub in Ontario, Canada. The only “problem” remaining is to find enough gas to flow the full 3.25 Bcf/d. They won’t be flowing the full 3.25 Bcf/d until all of the laterals are brought online…
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From January 2012 to February 2015, researchers from the University of Cincinnati collected 180 groundwater samples in Eastern Ohio, from water wells located close to Utica Shale drilling activity. In early 2016, the lead researcher shared some high level results from the study. The preliminary results showed that fracking in areas where there are water wells doesn’t affect those wells (see
An order from the Federal Energy Regulatory Commission (FERC) issued yesterday allows Energy Transfer (ET) to begin full operations along the North Market Segment of the Rover Pipeline–a $3.7 billion, 711-mile natural gas pipeline that runs from PA, WV and eastern OH through OH into Michigan and on to Canada via the Vector Pipeline. On April 13 ET asked FERC for permission to start up service along another major chunk of it’s massive Rover Pipeline (see 

NOTE: A previous version of this post reported a total price of $3.2 million, now changed to account for the addition of an extra $2.4M for required SEPs. See below.
Last Friday, Energy Transfer Partners asked the Federal Energy Regulatory Commission (FERC) for permission to start up service along another major chunk of it’s massive Rover Pipeline (see
One of “our own” (from the Marcellus/Utica industry) is heading to Washington, D.C. to work for the Trump Administration, in the Dept. of Energy. Shawn Bennett, formerly Executive Vice President for the Ohio Oil and Gas Association, is heading to the swamp to become Deputy Assistant Secretary for Oil and Natural Gas. That is, Shawn will head up the office of oil and natural gas at the DOE. How cool is that?! We sincerely hope he doesn’t get infected with swamp fever and instead works hard to promote the many benefits of fossil fuels. We’re sure he’ll be a huge success! Here’s the official announcement…

Attendees at yesterday’s Utica Midstream conference at Walsh University in North Canton, Ohio got an earful about pipelines and processing plants. Perhaps the biggest news coming from the event (for us, anyway), is that MarkWest Energy, now part of Marathon Petroleum, plans to build another six natural gas processing plants and another three fractionation plants in the Marcellus/Utica THIS YEAR. MarkWest plans to spend a whopping $2 billion in the region this year! That’s in addition to building two new processing plants and three fractionation plants last year. A processing plant accepts raw hydrocarbons coming out of shale wells and separates out the methane from everything else–“cleaning up” the methane so it’s pipeline-ready. Fractionation takes what’s left after the methane is removed and separates those other hydrocarbons into their discrete molecules–ethane, propane, pentane, butane, etc. According to MarkWest, M-U moving butane to new markets will be a major focus this year. We also learn that MarkWest’s Sherwood facility (in WV) is now the fourth largest gas processing plant in the U.S.–and by the end of this year, it will be #1! In addition to MarkWest, there were a number of other top notch speakers at yesterday’s event, including Rick Simmers from the Ohio Dept. of Natural Resources. Rick mentioned in passing there’s a shale well pad in southeast Ohio with a whopping 28 wells on it. Below is a summary of what was said at yesterday’s event…
We’ve read warnings about the potential for cyber (computer) attacks on the U.S. energy industry for several months. We understand how such an attack might affect a nuclear plant, or perhaps the electric grid. Screw up the computers managing and running a nuke plant or a significant portion of the electric grid and you have a class-one serious situation on your hands. However, we didn’t really think about pipelines. Did you know that pipeline networks, like electric grids, are monitored and controlled by computers and those computers can be compromised? We have to admit it was not on our radar screen. But that has now happened–and it affects not only pipeline systems in other parts of the country, but right here in the Marcellus/Utica. Energy Transfer Partners uses a third party service called Energy Services Group to manage all of its pipelines–a massive nationwide network. Energy Services provides EDI (electronic data interchange) services that reportedly cut costs and increases the speed with which companies exchange documents that used to be paper-based. Documents like those used in buying and selling natural gas at various trading hubs along major pipelines. On Monday, Energy Services was attacked electronically, knocking the service out of commission until further notice. Note that gas flowing through pipelines has not been affected. The affected computers don’t turn valves on and off. However, the ability to know who’s gas is flowing through the pipeline (who bought and who sold) has been slowed–on all of ET’s pipelines, including the newly-minted Rover Pipeline…
What a shame that a university with one of the best reputations in the world, Yale, has sunk this low–to pedal yet another so-called study that claims where there is fracking in the Ohio Utica, there’s also a higher incidence of sexually transmitted diseases (STDs) like gonorrhea and chlamydia. This isn’t the first “fracking causes STDs” study. Antis have issued these “studies” for years (see
The shale industry produces a lot of water. You read that right. The industry not only *uses* a lot of water (roughly 5 million gallons per well for fracking), it also *produces* a lot of water. Some 80% of the water used in fracking never comes back out of the ground–it seeps into the ground and stays there. However, there is naturally occurring water from the depths–from far below what we think of as “the water table” that sits a few hundred feet down. When you drill a hole in the ground a mile, or two miles down–there’s water down there too. It’s super-salty (full of minerals), which is why it’s called brine. In the industry the phrase used to describe this naturally occurring water is produced water. And it comes out long after fracking is over and done. It comes out for years–decades even. Drillers have to dispose of it somehow. The preferred method is to recycle it and use it for other drilling. When brine is recycled and the minerals (i.e. salt) is removed, the salt can be put to good uses, like spreading it on roads during the winter. Antis paint a scary picture of environmental holocaust in using “fracked salt”–but it’s nonsense. A bipartisan bill in Ohio is getting fresh attention, a bill that will allow for the sale of “fracked” brine for deicing roads in the Buckeye State during winter…