Statewide OH

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    Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid

    Two weeks MDN brought you the news that Energy Transfer’s $3.7 billion, 711-mile Rover Pipeline needs up to 15,000 workers to build it. At the time, it was reported they currently have ~4,500 workers. And they want to complete the first stage of the pipeline by July (see Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!). MDN’s story went viral. It has, so far, been read over 18,000 times on the MDN website–a new record for an MDN story just two weeks old. The headline and blurb we posted on Facebook has been seen by over 75,000 people! The result was that we were flooded with this simple question: Where do I sign up to work on the pipeline? The answer, unfortunately, is not straightforward. We reached out to Energy Transfer multiple times and got less-than-satisfactory answers. Energy Transfer’s answer to the question is this: If you are a contractor or want to try your hand at becoming a contractor, you can try applying via Rover’s contractor online application process. However, most people are not interested in that route. They just want to sign up and begin working. For those folks, Rover responded, “Rover is committed to utilizing Union labor 100% for this project. Laborers looking for work, can contact their local union halls.” No help with identifying those local union halls. So MDN provided a list (see How to Apply for one of the 15K Jobs Building the Rover Pipeline). Perhaps MDN had a hand in a flood of new recruits, because as of a construction report filed by Rover with the Federal Energy Regulatory Commission earlier this week, they now have 7,570 people working on the pipeline. It’s an interesting update (full copy below). Rover includes a table for how much of each phase the pipeline is complete. Tree felling? 100% done. Tree clearing? For the mainline, 51% done. How much of the main pipeline is now laid and ready for welding? Just 2%. Also interesting is a brief note that back on April 7, there was a small spill of bentonite drilling mud into a swap…
    Read More “Rover Update: Half of 15K Workers Now Hired, 2% Pipeline Laid”

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    Texas Gas Asks FERC for Extra 2 Yrs on Northern Supply Access Proj

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    Texas Gas Transmission (TGT) is a big pipeline network owned and operated by Boardwalk Pipeline Partners. Originally built from the Louisiana Gulf Coast to the upper Midwest, the purpose of the pipeline system was to supply Illinois, Indiana and Ohio with natural gas. Then the Marcellus/Utica Shale happened and TGT needed to change strategies. Through a series of projects, TGT made the pipeline system bidirectional, so it could flow gas from the Marcellus/Utica to points south, going as far as the Gulf Coast. One of the primary projects to accomplish that objective is called the Northern Access Supply Project, which first landed on our radar in Sept. 2015 (see Northern Supply Access Proj. Expands OH to Gulf Pipeline Capacity). Northern Access Supply was authorized by the Federal Energy Regulatory Commission (FERC) in March 2016 to “construct a new compressor station in Hamilton County, Ohio and make modifications at eight existing compressor stations in, Indiana, Kentucky, Tennessee, Mississippi, and Louisiana in order to enable Texas Gas to provide an additional 384,000 million British thermal units (“MMBtu”) per day of firm transportation service primarily in a north-to-south direction on Texas Gas’s system while maintaining Texas Gas’s current ability to flow gas south-to-north.” FERC gave TGT two years to get the work done (deadline March 2018). While some of the work has been done, not all of it has–and now TGT is asking for more time–an additional two years (to March 2020) to complete the project. Why? Because one of shippers contracted to use 100,000 MMBtus of that capacity (or 26% of the increased capacity) has filed for bankruptcy and can’t fulfill its commitment. So TGT wants to delay the final work until it has more customers for the other 100,000 MMBtus of capacity…
    Read More “Texas Gas Asks FERC for Extra 2 Yrs on Northern Supply Access Proj”

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    OH Lawsuit Tries, Fails to Stop Mariner East 2 Pipeline

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    The Mariner East 2 (ME2) Pipeline has always been a story about Pennsylvania. Almost always. ME2 is actually two pipelines, laid side by side, that are meant to carry natural gas liquids (propane and butane) from southwestern Pennsylvania and eastern Ohio all the way across PA to the Philadelphia area–terminating at the Marcus Hook refinery/terminal. Most (not all) of the NGLs are exported to other countries. And therein lies the bone of contention. ME2 was granted status as a public utility and with it, the right to use eminent domain to force landowners to allow the pipeline across their property. Some landowners resisted, and (with help from anti groups) sued, repeatedly, claiming there is no public benefit from NGLs that get exported to other countries. They do have a point. So ME2 built four “off ramps” in PA–points where propane and butane will be purchased and used locally, which helps justify the public utility/eminent domain claim. Until now we’ve always read about lawsuits against ME2 originating in PA, where 95% of the pipeline will be built. However, there was a vigorous challenge to ME2 in Ohio on the same grounds–that ME2 is not in the public interest. That lawsuit argued, among other things, there are no “off ramps” in Ohio where the NGLs will be sold and used. However, a lower court and then an appeals court didn’t buy that argument and ruled against the landowner and in favor of ME2. That case appears dead, but it was appealed to the Ohio Supreme Court (no decision yet on hearing the case). This post will catch you up on the arguments for and against ME2 and its claim to be a public utility with the right of eminent domain in Ohio…
    Read More “OH Lawsuit Tries, Fails to Stop Mariner East 2 Pipeline”

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    Rover Works w/Farmers to Ensure Field Access During Construction

    We previously highlighted a video that shows the massive project underway to construct the Rover Pipeline (see Video of Rover Pipeline’s Massive & Complex Construction in OH). Truly impressive feat of engineering. Rover cuts through a lot of farm land–as evidenced on that video. So what happens when the pipeline is cutting through a farmer’s property, and the farmer needs to drive his tractor and other equipment from one side of the construction to a field on the other side? Out of luck? Screwed? Too bad, so sad? Nope. Rover, like other responsible pipeline companies, is working with farmers to ensure they can get to where they need to go during pipeline construction. In some cases Rover will install “trench plugs” over the trench, and in other cases “timber mats”…
    Read More “Rover Works w/Farmers to Ensure Field Access During Construction”

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    How to Apply for one of the 15K Jobs Building the Rover Pipeline

    Last week MDN brought you the news that Energy Transfer’s $3.7 billion, 711-mile Rover Pipeline needs up to 15,000 workers to build it. They currently have ~4,500 workers. And they want to complete the first stage of the pipeline by July (see Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!). MDN’s story went viral. It has, so far, been read over 17,000 times on the MDN website–an all-time high for a story less than a week old. The headline and blurb we posted on Facebook has been seen by nearly 72,000 people! The result was that we were flooded with this simple question: Where do I sign up to work on the pipeline? The answer, unfortunately, is not straightforward. We reached out to Energy Transfer multiple times and got less-than-satisfactory answers. Energy Transfer’s answer to the question is this: If you are a contractor or want to try your hand at becoming a contractor, you can try applying via Rover’s contractor online application process (here). However, most people are not interested in that route. They just want to sign up and begin working. For those folks, Rover responded, “Rover is committed to utilizing Union labor 100% for this project. Laborers looking for work, can contact their local union halls.” No help with identifying those local union halls. It is a sort of “you’re on your own” kind of response. Which strikes us as odd. Does Energy Transfer really want to complete this project on time? Could they at least provide a list of the “local union halls” for folks to contact? Apparently not. So we will…
    Read More “How to Apply for one of the 15K Jobs Building the Rover Pipeline”

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    Baker Hughes March Rig Counts: Rocket Ride Continues, U.S. Up 45

    The Baker Hughes rig count in the U.S. continued to rocket skyward in March. In January the average number of U.S. rigs was 683. In February, the count zoomed to 744, up 61 rigs in just a month. And in March, the U.S. rig count zoomed to 789, up another 45 rigs in a month. Each active rig translates into hundreds of jobs, both directly working at the rig and indirectly in services delivered to the rig and its workers. It also means more landowners will soon have royalty payments heading in their direction. When rigs are active, life is good. What about rig counts in the Marcellus/Utica? Disappointingly our region’s rig count lost a rig in March. PA lost two rigs, OH gained a rig, and WV stayed even. What does it all mean? It means that this zooming up in rig counts is happening in other locations–primarily in the Permian Basin in Texas. That is, oil rigs rushing to take advantage of an increase crude prices to a sustained $50+/barrel. While we’re happy the rig count is up, we’re not happy more it is not happening in the northeast. But honestly, without pipelines to take away an increase in production, can you blame our drillers? Once there is more takeaway capacity, you’ll see rig counts begin to climb again in our neck of the woods…
    Read More “Baker Hughes March Rig Counts: Rocket Ride Continues, U.S. Up 45”

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    UTOPIA East Pipe Re-Routes Around OH Antis, Drops Eminent Domain

    In January 2016, Kinder Morgan committed to building the UTOPIA (Utica To Ontario Pipeline Access) pipeline, a 12-inch ethane pipeline that will run ~240 miles across the state of Ohio where it will connect with another pipeline and (eventually) flow ethane all the way to a cracker plant in Canada (see Kinder Morgan Ready to Move Forward with UTOPIA East Pipeline). However, all was not utopia in UTOPIA–some Ohio landowners got a bumble bee in their bonnet and refused to deal, so KM took them to court (see UTOPIA Pipeline Sues Holdout OH Landowners Using Eminent Domain and UTOPIA Pipeline Still Battling OH Landowners with Eminent Domain). UTOPIA hit a brick wall in Wood County when a judge blocked the use of eminent domain in that county, saying the project does not benefit the public good (see Wood County OH Judge Blocks Eminent Domain for UTOPIA Pipeline). No worries. UTOPIA has been hard at work and has signed lease agreements with more reasonable landowners and is altering the route to avoid the ones who don’t want it. Hey, some people don’t want a truckload of money, who are we to argue? As we previously reported, tree clearing began in February (see Utopia has Arrived! Construction in OH Begins on Ethane Pipeline). KM says construction on the actual pipeline will begin later this month. Here’s the latest, about UTOPIA changing the route in Wood County to avoid those who don’t want it…
    Read More “UTOPIA East Pipe Re-Routes Around OH Antis, Drops Eminent Domain”

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    Expensive Nuke Plants in OH, PA Launch Attack on Cheaper NatGas

    Nuclear power plants, which are heavily regulated, can no longer compete in the free and open market–so they’ve decided to seek new laws to protect their revenue stream. That is, they hope to use laws to do what they can’t do in the free marketplace–force electric ratepayers to fund their more expensive source of electricity, and erect barriers for natural gas-fired electric plants (i.e. “re-regulation” of the electric industry). It’s sleazy and disgusting, but it’s happening. The nuke lobby has been successful in places where there’s corruption–like New York and Illinois. Now the nuke lobby is trying it in Ohio and Pennsylvania. Will they fall next?…
    Read More “Expensive Nuke Plants in OH, PA Launch Attack on Cheaper NatGas”

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    Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!

    [4/7/17 UPDATE: Since publishing this post, MDN has been flooded with calls and emails asking, “Where do I apply for a Rover job?” After reaching out to Rover numerous times, what we have learned is that Rover is using contractors, and union labor. There is no HR office at Rover to accept job applications. Job seekers must either find a job with a local contractor already working with Rover, or by heading down to the local union hall to see if they can help. MDN plans to publish another article next week with more details and strategies on finding a Rover Pipeline job. Stay tuned.]

    Some really big news coming from the Utica Upstream conference held Wednesday at Walsh University (in North Canton, OH). As we previously reported, Rover Pipeline got permission from the Federal Energy Regulatory Commission (FERC) to begin construction on March 3rd (see FERC Green Lights Rover Pipeline Construction). And construction began, immediately. A local TV station recently did a flyover of one area where construction is happening, and the video is an awesome sight (see Video of Rover Pipeline’s Massive & Complex Construction in OH). Operating all of those bulldozers and backhoes, driving trucks, shoveling dirt, moving material from Point A to Point B–takes people. A LOT of people. So far Rover has hired 4,500 workers–but they need 15,000! And they need them NOW, as soon as possible, stat. What happens if they don’t get enough workers? They won’t make their deadline of completing the first phase of the Rover project by July 1st. What stands in the way of hiring another 10,000+ workers? In a word, drugs. Rover can’t find enough warm bodies who can pass a drug test, which is a sad commentary on society today…
    Read More “Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!”

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    Eclipse Resources Touts Big ROI on Long Horizontal Shale Wells

    Pardon me, but may I ask, How long is your lateral? We don’t mean to ask such a personal question, but in this case, size matters. You see, the longer the lateral, the more return on investment (ROI) you get–according to top officials from Eclipse Resources. Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio, fielded top officials at two different events this week to talk about the company’s drilling program–and their impressively long laterals. MDN editor Jim Willis heard Eclipse CEO Benjamin W. Hulburt at the Oil & Gas Investment Symposia (OGIS) in New York on Tuesday. On Wednesday, Eclipse’s vice president of drilling, Oleg Tolmachev, appeared at the Utica Upstream conference at Walsh University in North Canton. They both hit on a theme that struck a chord with us–namely, that by drilling longer lateral Utica wells, the company is drastically lowering the cost per foot of drilling–and by doing so, they raise the ROI, making their shale wells more profitable than their competitors’…
    Read More “Eclipse Resources Touts Big ROI on Long Horizontal Shale Wells”

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    Anti Rover Pipe Leader Admits True Motive: Fossil Fuel Hatred

    Isn’t it refreshing when those who oppose something, like fracking, or pipelines, are just honest about their true “heart of hearts” motivation? We’ve made the case for years that charlatans like Josh Fox (of Gasland infamy) attempt to manipulate public opinion through the use of lies–like “fracking pollutes water” and “pipelines explode.” They attempt to smear fundamentally safe practices like fracking through the use of innuendo, supposition and lies. What is their true motivation? They oppose fossil fuels. They believe, in a rather kindergartenish way, that solar and wind and so-called renewable energy sources are superior–and if you don’t want to pay the high price of those sources, well, they want to FORCE you to accept it. But we’re not Stalinist Russia–yet. They can’t just enforce their will on the public. So they have to convince enough of the public to believe their lies that politicians will follow suit and pass laws to strip away more of our freedoms (see Maryland Gov. Hogan Pulls the Trigger, Commits Fracking Suicide for the latest example). So when someone comes along, like Lea Harper from the FreshWater Accountability Project, and admits openly and without reservation that she (our words) hates fossil fuels, what she calls “extreme energy extraction,” well, we find it refreshing. We don’t have to dance around all of the side issues and lies normally pedaled by the opposition–we can then talk about the the real issue, which is the superiority and goodness of fossil fuels vs. alternatives…
    Read More “Anti Rover Pipe Leader Admits True Motive: Fossil Fuel Hatred”

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    Jobs in Building Trades “Strong” for Next 3 Yrs in OH Utica

    Those who oppose fossil fuels try various arguments to convince the general public that extracting oil and gas is bad for the environment. They claim (without facts or proof) that drilling pollutes the water, it pollutes the air, it does permanent damage to the environment. When faced with lack of evidence, antis slip-slide into other arguments against drilling and pipelines. An undeniable benefit from the shale industry is jobs. That includes jobs building pipelines. You need an army of bulldozers, backhoes, truckers, welders and construction workers to lay a pipeline (see today’s lead story and the awesome video of the Rover Pipeline getting built in Richland County). Antis say, “But jobs building pipelines and power plants and processing plants are temporary. They’re illusory. No long-term benefit.” We’ll never forget the powerful statement given at a hearing about the proposed Constitution Pipeline from Francis Cooney, a 28-year member of the plumber and pipe-fitters union. He said this in response to the “those jobs are temporary” meme offered by antis that evening: “For 28 years every job I’ve had has been a temporary job! My temporary jobs have put two kids through Syracuse University” (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). Which obliterates the nonsense about “temporary jobs.” Good news for Ohioans who work “temporary jobs” in the trades in Stark and surrounding counties: Dave Kirven, president of the East Central Ohio Building & Construction Trades Council, says there’s plenty of work for tradespeople–that demand is “strong” for tradespeople for at least the next three years. Why? Mostly due to the Utica Shale…
    Read More “Jobs in Building Trades “Strong” for Next 3 Yrs in OH Utica”

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    Coal King Robert Murray Still Spoiling for a Fight with NatGas

    Robert Murray

    Murray Energy CEO Robert Murray is an interesting character. We’ve reported on him a number of times over the years. Murray went after Aubrey McClendon when Aubrey named is new company American Energy Partners. Murray claimed a subsidiary company he owns already had that name. Eventually a court told Aubrey he could keep the name (see Federal Court Decides McClendon Can Keep ‘American Energy’ Name). In early 2016 Murray went after the shale gas industry in West Virginia. He said WV should lower the coal severance tax from 5% to 2%, and raise the natgas severance tax from 5% to whatever, in order to give coal a break in the Mountain State (see Why Can’t We be Friends: Can Coal & NatGas Get Along in WV?). Even though he rails against natural gas, Murray found it in his heart to lease some of his coal mining property for natgas drilling, twice (see Coal Company Leases 6K Acres for Natgas Drilling in Belmont, OH and Coal Co. Murray Energy Sells 5,900 OH Utica Acres – Who Bought?). The second lease was for $10,800/acre. Seems Murray says one thing but does another when it comes to natgas. Today President Trump delivers on yet another campaign promise by rolling back some of Obama’s draconian environmental regulations–specifically the Clean Power Plan–which will benefit Robert Murray and the coal industry. At least, theoretically. The jury is still out on whether coal will ever come back. Recently the Columbus Dispatch interviewed Murray. He maintains that coal can compete with natural gas “all day long” if only coal had a “level playing field.” Here’s what he said…
    Read More “Coal King Robert Murray Still Spoiling for a Fight with NatGas”

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    Respectable Volume of Oil (Yes, Oil!) Coming from Marcellus/Utica

    We spotted an article on The Motley Fool website by one of our favorite authors, Matt DiLallo. The article shines a light on the states that produce the most shale oil. Surprisingly (for us), the Marcellus/Utica was in the list. Appreciable amounts of shale oil are coming from Ohio, Pennsylvania and West Virginia, from both the Marcellus and Utica formations. Of course the amount produced in our neighborhood pales in comparison to the enormous amounts of oil coming from the Texas Permian and North Dakota Bakken. But hey, the fact that we even show up in such a list is kind of exciting…
    Read More “Respectable Volume of Oil (Yes, Oil!) Coming from Marcellus/Utica”

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    OH Court Says Grandkids Can Claim Mineral Ownership Under DMA

    MDN has previously highlighted the importance of last year’s Ohio Supreme Court decision with regard to the Ohio Dormant Mineral Act (DMA). In September 2016 the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). Following that ruling, we brought you insights on what it means from international law firm Jones Day (see One More Look at Important OH Supreme Court DMA Decision). We later ran a copy of an analysis done by attorney David Wigham, who said, “[T]he landscape regarding title and ownership to mineral interests in Ohio has significantly changed” (see Expert Says OH DMA Decision “Significantly Changed” Mineral Rights). The ramifications of the Supreme Court’s decision continues–and various aspects of the now-settled law are still, well, getting settled. Under the DMA if a surface landowner advertises his or her intent to reclaim mineral rights (when the rights have been dormant for period of years), the rights owners have a certain amount of time to respond to reassert their ownership. But what if the original rights owners are now dead. Can their heirs, as in grandchildren, claim those rights? Under a case just decided in Ohio’s Seventh District Court of Appeals, the answer to that would be, “Yes”…
    Read More “OH Court Says Grandkids Can Claim Mineral Ownership Under DMA”

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    OOGA Joins Fight Against Obama BLM Venting-Flaring Rules

    In January 2016, the Obama Dept. of Interior posted a new rule that will make it all but impossible for oil and gas drillers to drill on federal lands (see Obama’s Interior Dept. Sneaks in New Rule to Limit Methane). The new 298-page rule requires companies to use expensive equipment to capture every last molecule of methane, the stuff these companies already capture so they can sell it, to prevent any “fugitive” methane from escaping into the atmosphere where it contributes to mythical global warming. Obama has also hiked the price drillers will pay to drill on federal lands. The aim is, of course, to shut down drilling on all federal lands. The “venting and flaring rule,” as it’s known, was adopted by the outgoing Obamadroids in the closing days of Obama’s ignominious administration. The new rule was due to be rolled back by a vote in the new Republican-controlled Senate. But that hasn’t happened–yet. Timid Republicans are afraid that rolling back the horrible rule will lose them votes with green radicals (not that greens will ever vote for them anyway). There is a full court press to get the Senate to vote. The Ohio Oil & Gas Association (OOGA), representing hundreds of Ohio drillers, has joined the effort and is trying to convince Ohio Republican Sen. Rob Portman to support the repeal of the BLM rule…
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