Statewide OH

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    Rover Pipeline’s Phase 1 In-Service Date Slips to “Late Summer”

    As recently as July 7th, Energy Transfer Partners, builders of the mighty 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, said that a portion of Phase 1–from Cadiz, OH to Defiance, OH–will be completed and go online this month, in July (see ETP Says Much (Not All) of Rover Phase I Will Go Online in July). But then the Federal Energy Regulatory Commission (FERC) sent ET a pretty hefty todo list on July 12th (see Frustrated FERC Gives Rover Todo List, HDD Drilling Still Blocked). ET has finally changed its tune–and target date. The company now says Phase 1 will not be completed and online until “late summer”…
    Read More “Rover Pipeline’s Phase 1 In-Service Date Slips to “Late Summer””

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    Frustrated FERC Gives Rover Todo List, HDD Drilling Still Blocked

    Yesterday the Federal Energy Regulatory Commission (FERC) sent a letter to Energy Transfer regarding the Rover Pipeline project. You may recall that Rover hit some bumps along the way in its aggressive schedule to get part of the pipeline up and running by the end of this month, and the rest operational by the end of November. In Ohio, Rover experienced a series of mishaps, the most serious of which spilled 2 million gallons of non-toxic drilling mud in a swamp near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). An investigation by the Ohio Environmental Protection Agency (OEPA) found the presence of diesel fuel in the drilling mud, which means the mud wasn’t so non-toxic after all (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). Since that time, FERC has stopped all new underground horizontal directional drilling (HDD) for the Rover project. Rover has asked FERC, several times, for permission to restart the HDD work–at least in a few select locations. In this latest letter from FERC, the agency slaps Rover around and says, (1) you still can’t start HDD, (2) we (FERC) are still investigating the 2 million gallon spill, and you (Rover) are not helping–because Rover hasn’t provided key personnel for interviews by FERC, and (3) you (Rover) need to dispose of the diesel-tainted drilling mud in an approved landfill before we’ll even consider restarting your HDD activities. The letter closes with a paragraph that says, essentially, “We’re watching you.” We have the FERC letter below, with its 4-point todo list for Rover, along with analysis of the letter and the current status of Rover…
    Read More “Frustrated FERC Gives Rover Todo List, HDD Drilling Still Blocked”

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    Ohio Steals $15M from O&G Severance Tax Fund for Non-O&G Purpose

    The Ohio Controlling Board, part of the Office of Budget and Management, has raided (i.e. stolen) $15 million from Ohio’s severance tax fund to use in settling a lawsuit from the late 1990s–a lawsuit that has nothing whatsoever to do with oil and gas. According to the American Petroleum Institute Ohio, the misappropriation of the money is likely illegal. The Controlling Board was set up by the Ohio legislature to handle “necessary adjustments to the state budget.” In other words, it was set up to pick one pocket and put the money in a different pocket. In 1997 Ohio widened a dam spillway in the western part of the state, and the result flooded the property of some unfortunate landowners, who sued. The lawsuit has languished for years, and it’s now time to pay up. The Controlling Board decided to raid/steal the money from the severance tax fund–a fund that’s supposed to be used for things like plugging abandoned orphan o&g wells. Most drilling in Ohio happens on the eastern side of the state. The flooded property in 1997 happened on the western side of the state. Anyone else see a disconnect and sleazy politics going on here? The severance tax fund has become the personal piggy bank for certain Columbus politicians…
    Read More “Ohio Steals $15M from O&G Severance Tax Fund for Non-O&G Purpose”

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    Ohio EPA Asks Ohio AG to Force Rover to “Comply” and Pay $914,000

    Sounding eerily like a Borg drone from Star Trek (“YOU WILL COMPLY, RESISTANCE IS FUTILE”), the Ohio EPA (OEPA) has asked Ohio’s Attorney General, Mike DeWine, to force Rover to pay the Ohio EPA $914,000 in so-called fines it has unilaterally levied (with no apparent authority to do so) to punish Rover for a series of accidents while constructing the pipeline. Rover has not agreed to the fines and is challenging the OEPA’s authority to levy them. So the OEPA is asking DeWine to use the full weight and force of his office to force Rover to comply. Rover has had the pedal to the metal since receiving a go-ahead from the Federal Energy Regulatory Commission (FERC) in March to begin construction to build a 711-mile natural gas pipeline from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see FERC Green Lights Rover Pipeline Construction). Perhaps by going a little too fast, Rover experienced some problems along the way, the biggest being a 2 million gallon leak of drilling mud into a swamp (i.e. “wetland”) near the Tuscarawas River in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). Since that time, the OEPA and Rover have been on the outs, with the OEPA attempting to assert itself in a role that frankly, it doesn’t legally possess. The Rover project has federal, not state, oversight. This latest move by OEPA is an escalation in the ongoing disagreement over OEPA’s role, and their demands for money from Rover. It almost seems as if Craig Butler, head of the OEPA, is on a personal mission to stop this pipeline from getting built…
    Read More “Ohio EPA Asks Ohio AG to Force Rover to “Comply” and Pay $914,000″

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    Ohio Gov Kasich About to Lose Power to Stop Drilling on State Land

    Thumbing their collective noses at Ohio RINO Gov. John Kasich, in May Republican legislators in the House added a “little-noticed provision” in the state budget deal that will give the legislature, and not the governor, the power to select members of the Ohio Oil and Gas Commission (see Ohio Legislators Push to Allow Fracking in State Parks, Forests). That small change would have huge consequences. How? the Oil and Gas Commission is charged with approving potential drillers on state land. Five years ago, Kasich flip-flopped on the issue and since then has not allowed shale drilling in state-owned forests and state-owned parks–by refusing to add any new members to the Commission, which is his state constitutional duty. It is a de facto moratorium from the governor that prevents fracking on state-owned land. Enough is enough. Republicans intend to change it this year, so they added the change to the state budget bill. Kasich vetoed the measure, and the House, last week, voted to override the veto. The only thing left now is for the Senate to adopt the budget and when that happens, the fat lady will be singing–an aria for Utica Shale drilling…
    Read More “Ohio Gov Kasich About to Lose Power to Stop Drilling on State Land”

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    Free Training Program for NatGas Jobs in SW PA, Eastern OH

    The Gas Technology Institute (GTI), based in Illinois, is doing the Marcellus/Utica region a huge favor. GTI has launched a pre-employment training program to introduce folks to natural gas pipeline operations. The four-week program provides a basic understanding of natural gas, the utility and pipeline industry, and different equipment, procedures and operations used. The program is aimed at students, veterans, displaced coal workers and others with an interest in getting a job with utilities, midstream (i.e. pipeline) companies and their contractors. Here’s the best part: The program is fully funded, so there is no tuition cost for those who qualify. The program is delivered via classroom at three participating colleges: Westmoreland County Community College and Butler County Community College (both in PA), and Washington State Community College (in OH). Here’s the lowdown..
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    ETP Says Much (Not All) of Rover Phase I Will Go Online in July

    Rover route through Ohio – click for larger version

    Last Friday MDN brought you the news that Energy Transfer is changing some of its previously planned underground horizontal directional drilling (HDD) to trenching in order to keep the 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, on schedule (see Rover Pipeline Converts Some Horizontal Drilling to Trenches Instead). Phase I of the project is the section from eastern Ohio, Pennsylvania and West Virginia to the Midwest Hub in Defiance, OH, via what is called Rover’s “Mainline A” segment. That entire segment was supposed to be completed this month–July 2017. Ain’t gonna happen. However, Energy Transfer says a significant portion of Phase I–from Cadiz, OH to Defiance, OH–will be completed this month. That’s a pretty big portion of the Phase I project–essentially spanning the state from eastern OH to northwestern OH. If ET can pull it off, it will be an impressive feat, given delays imposed by the Federal Energy Regulatory Commission…
    Read More “ETP Says Much (Not All) of Rover Phase I Will Go Online in July”

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    Rover Pipeline Converts Some Horizontal Drilling to Trenches Instead

    Phase I of the 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada is supposed to be completed by July 2017, while Phase II is supposed to be done by November 2017. Will Phase I be done by the end of this month? We sure wouldn’t want to take that bet, but we suppose there’s still a slim chance. While building the $3.7 billion pipeline project, Energy Transfer (or more correctly its contractors) hit some snags, including spilling 2 million gallons of non-toxic drilling mud near the Tuscarawas River (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The Federal Energy Regulatory Commission (FERC) slapped a stop work order on any horizontal directional drilling (HDD, or underground drilling) projects for Rover not already underway. A tipster later claimed diesel fuel was being added to the drilling mud and after testing a sample from the spill near the Tuscarawas, the Ohio EPA claimed to have found diesel in the mud (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). That made FERC really upset and touched off a full investigation. Meanwhile, Rover hired a new firm to oversee HDD activity and pledged with a cross-your-heart-pinky-swear to FERC that those kinds of accidents would not happen again. FERC recently allowed Rover to restart some of the work halted, which has radicals at the Sierra Club fit to be tied. However, in the “you can start again” order, we noticed that Rover has changed some (much?) of the remaining HDD projects into digging trenches instead. Obviously you can’t dig a trench across the Tuscarawas River–or a highway–or other such structures. But you can dig a trench right up to the edge of those structures. It’s our observation that a change from HDD to trenching has allowed Rover to restart stopped work in a number of locations…
    Read More “Rover Pipeline Converts Some Horizontal Drilling to Trenches Instead”

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    3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running

    In February MDN reported that Marathon Petroleum had begun to build a 49-mile condensate pipeline, called HALI–the Harpster to Lima Pipeline (see Marathon Begins to Build New 49-Mile Utica Pipeline in Ohio). The purpose of the project is a pipeline “for efficient and safe delivery of condensate from the Utica Shale to refineries where it can be processed into gasoline and diesel in order to meet the needs of producers, mid-streamers, marketers, diluent blenders, and refiners as the Utica Shale continues to develop.” At the time, the pipeline was expected to go online in July–this month. It beat the clock and went live last month (see Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio). MarkWest, now owned by Marathon, issued an announcement yesterday to point out not only is HALI now up and running, but so too are two other liquids pipelines that MarkWest worked to expand: East Sparta to Heath, and Heath to Harpster. Together the three pipelines are moving liquids to refineries throughout the Midwest. Marathon is also working on a project to extend their service for diluents to western Canada…
    Read More “3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running”

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    Marcellus/Utica Identity Crisis – What Should Our Region Call Itself?

    Being a marketing guy, MDN editor Jim Willis knows that crystallizing a concept into a few key words is critical. You have to be able to convey your meaning in as few words as possible–and those words must be pregnant with meaning. Jim was lucky enough to name this blog/news site Marcellus Drilling News, which (mostly) conveys its purpose–to report on happenings in the Marcellus (later adding the Utica) region. A very smart person who’s given a lot of thought about our industry is Kathryn “Katie” Klaber. Katie owns her own consulting firm–The Klaber Group. But before that, she was founder and president of the Marcellus Shale Coalition (a well-named organization). Katie lives and works in Pittsburgh. In a recent article for the Pittsburgh Business Times, Katie ponders over Pittsburgh (and our industry’s) “identity crisis”–by which she means our lack of good branding. Sometimes our industry and region is referred to as “Appalachia.” But that term often connotes the mountains of West Virginia, spreading out into Kentucky. Sometimes we are referred to as the “Marcellus/Utica basin,” which gets a lot closer to meaningful, but connotes drilling and leaves out the downstream. And sometimes we’re called “the Northeast.” But folks in Ohio consider themselves Midwesterners, not northeasterners. Why is it important to lock down an accurate, pregnant-with-meaning description for our entire industry (upstream, midstream and downstream), and our geographic region? According to Katie, it comes down to two words: capital investment. We need to brand ourselves and do it sooner rather than later, if we want to grow business in our neck of the woods…
    Read More “Marcellus/Utica Identity Crisis – What Should Our Region Call Itself?”

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    Ohio State Research Finds Microbes in Utica Well May be Corrosive

    Last year MDN brought you the story of researchers who found microbes (bacteria) living nearly two miles down in Utica Shale wells. They dubbed one of the never-before-seen bacterial “lifeforms” in the well Frackibacter. We immediately labeled it a different name: Frackenstein (see Frackenstein! Researchers Find New Life Form in Fracked Utica Wells). One of the Ohio State researchers who helped discover Frackenstein, Mike Wilkins, has continued his work. In a newly published study, titled “Sulfide Generation by Dominant Halanaerobium Microorganisms in Hydraulically Fractured Shales” (full copy below), Wilkins says a different bacteria he studied, that appeared in multiple Utica wells (called Halanaerobium) may be a cause for concern. In this new study, Halanaerobium was found to convert thiosulfates found in the environment to sulfide–which can be toxic to workers and corrosive to pipes and cement in the ground. Bear in mind this latest study appears to be pretty theoretical–and based on observations at a single Utica well. However, the research seems legit to us, and was not funded by anti-drilling organizations…
    Read More “Ohio State Research Finds Microbes in Utica Well May be Corrosive”

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    OH Budget Bill Blocks Forced Pooling of Public Lands

    Ohio is about to pass and adopt it’s latest biennial budget. Part of the budget bill includes language to exempt Ohio’s city and town parks from the state’s unitization (i.e. forced pooling) laws. In Ohio, if 65% of the landowners in a proposed unit have agreed to lease their land for oil or gas drilling, the other landowners in the unit can be forced to join the unit to allow drilling under (not on) their land. There are all sorts of requirements before forced pooling occurs, including a $10,000 fee paid by the driller, and a hearing to review efforts made to enroll said recalcitrant landowners. But in the end, it is possible to force landowners who don’t want drilling, to have it. The justification is that those who don’t want it are harming those who do want it by not agreeing to join the unit. Should the action of someone with a few acres deny benefits to all of his neighbors? We’re not saying we support the concept of forced pooling–just giving you our best interpretation of the arguments used to support it. We understand those arguments. We also understand the sanctity of private property. Until now, local towns and municipalities in Ohio were treated like any other landowner. But now, with the new budget, they will get a special exemption. Local municipalities cannot be forced to participate–unless they want to participate–in a drilling unit…
    Read More “OH Budget Bill Blocks Forced Pooling of Public Lands”

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    Rover (Again) Asks FERC for Permission to Finish Horizontal Drilling

    Yesterday Energy Transfer Partners, the builder of the Rover Pipeline, once again asked the Federal Energy Regulatory Commission (FERC) if they could pretty-please-with-a-cherry-on-top resume horizontal directional drilling (HDD) in a couple of key locations in Ohio, so they can finish phase one of the pipeline somewhere close to on-time. Rover is a $3.7 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. It is a critical piece of sorely needed infrastructure for the Marcellus/Utica industry. As soon as ET received approval for the project in February, they began building it. But they hit a few snags along the way, including an “inadvertent return” (i.e. 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). A few weeks later ET asked FERC if they could begin drilling again in a few key locations (see Rover Gets Serious About Mud Spills, Asks FERC for OK to Drill). But so far, nyet. Yesterday ET asked again, “respectfully,” to restart HDD drilling…
    Read More “Rover (Again) Asks FERC for Permission to Finish Horizontal Drilling”

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    Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio

    Click map for larger version – Harpster & Lima in the center

    In February MDN reported that Marathon Petroleum had begun to build a 49-mile condensate pipeline, called HALI–the Harpster to Lima Pipeline (see Marathon Begins to Build New 49-Mile Utica Pipeline in Ohio). The purpose of the project is a pipeline “for efficient and safe delivery of condensate from the Utica Shale to refineries where it can be processed into gasoline and diesel in order to meet the needs of producers, mid-streamers, marketers, diluent blenders, and refiners as the Utica Shale continues to develop.” At the time, the pipeline was expected to go online in July. It’s not quite July, but the good news is that the pipeline is now online and delivering…
    Read More “Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio”

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    Radical Enviro Groups Ask FERC for Full Investigation of ET Rover

    Here is a short list of radical environmental groups that are despicable and loathsome in every sense of the word: Sierra Club, Center for Biological Diversity, Earthworks, Freshwater Accountability Project, Friends for Environmental Justice, Indigenous Environmental Network, Indigenous Iowa, Keep Wayne WILD, Louisiana Bucket Brigade, Ohio River Citizens’ Alliance, and Oil Change International. They have dedicated themselves to stopping work on, and ultimately blocking, Energy Transfer’s (ET) $3.7 billion, 711-mile Marcellus/Utica Rover natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The problem, however, is that ET has given these groups an open door to pedal their anti-fossil fuel nonsense. Indeed, ET has given them an open door to block further progress on building Rover. How? By rushing construction that has led to a string of accidents and incidents, alienating the thin-skinned Ohio Environmental Protection Agency (OEPA) and a number of landowners. One of the accidents, perhaps the most prominent accident that’s been the focus for much of the radical’s efforts, was a 2 million gallon spill of drilling mud into a wetland near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). After receiving a tip, the OEPA tested some of the recovered drilling mud and claim they found diesel fuel mixed in (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). That finding led the Federal Energy Regulatory Commission (FERC) to launch an investigation. On Wednesday, the radical groups we list above sent a five-page letter to FERC requesting a “formal and full investigation” of the entire Rover project. In other words, shut it all down and give Rover a detailed anal exam. Every day the Rover Pipeline goes over its projected online date, the company loses $10 million. If FERC agrees to the nutters’ request, well, let’s just say it’s not good news for ET…
    Read More “Radical Enviro Groups Ask FERC for Full Investigation of ET Rover”

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    Marcellus/Utica Region Could Support 4 More Crackers, but Will It?

    In March of this year, the Team Pennsylvania Foundation released a report called “Prospects to Enhance Pennsylvania’s Opportunities in Petrochemical Manufacturing” (see PA Study Finds Marcellus/Utica Can Support 4 More Ethane Crackers). The report is derived from a comprehensive study conducted by powerhouse oil & gas consulting firm IHS Markit. According to the report, Pennsylvania can easily handle another two ethane cracker plants (aside from the already under construction Shell cracker), and Ohio and West Virginia can handle another two cracker plants between them, for a total regional capacity of another four ethane cracker plants. But realistically, will another four actually get built in our region? That was the topic addressed during the Northeast U.S. Petrochemical Construction conference held earlier this week in Pittsburgh. PA officials talked openly and honestly about the challenges in attracting more crackers–and about their mission, which is “the development of sites” to attract more crackers. It was an interesting, and candid, discussion with helpful information about what crackers look for in a potential site…
    Read More “Marcellus/Utica Region Could Support 4 More Crackers, but Will It?”