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PA DEP Signals Approval for Adelphia Gateway Pipe Near Philly

Adelphia Gateway map (click for larger version)

In January the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment for New Jersey Resources’ Adelphia Gateway pipeline project in the Philadelphia area (see Adelphia Gateway Pipe Enviro Assessment Approved by FERC). On Saturday, the Pennsylvania Dept. of Environmental Protection (DEP) indicated it will soon issue a federal “401” Clean Water Act stream crossing permit for the project.
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SE PA Republicans Ask Adelphia Pipe to Move Compressor Station

Click for larger version

Two weeks ago the Pennsylvania Dept. of Environmental Protection held a public hearing for the Adelphia Gateway project, a plan to convert an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, to instead pump natural gas (see PA Residents Sound Off Against Adelphia Pipe at DEP Hearing). It was pretty easy to predict that the hearing would elicit negative feedback, based on previous stories of residents unhappy with the location of a planned compressor station in Bucks County. And it did. The public reaction did not escape the attention of local Republican politicians. Congressman Brian Fitzpatrick and state Rep. Craig Staats, both representing Bucks County, wrote a joint letter to the Federal Energy Regulatory Commission asking that the location of a planned compressor station in Bucks be moved.
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Liens Against ME2 Pipeline Landowners Near Philly Dismissed

That was fast. Last week we reported that lawyers for a Mariner East 2 (ME2) subcontractor, United Piping Inc., had filed liens against the property of three landowners near Philadelphia because the ME2 contractor they worked for, Welded Construction, had declared bankruptcy and couldn’t pay them. And since ME2 builder Sunoco Logistics (along with Atlantic Sunrise Pipeline builder Williams) withheld payments from Welded, forcing it into bankruptcy, United figured they would extract their pound of flesh from landowners. Which, as we said, is outrageous and wrong (see Bankrupt Pipeline Contractor Leads to Liens Against PA Landowners). A day after that story broke, the companies involved (namely Energy Transfer, on behalf of Sunoco Logistics) got it resolved.
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PA Residents Sound Off Against Adelphia Pipe at DEP Hearing

The Pennsylvania Dept. of Environmental Protection held a public hearing last week for the Adelphia Gateway project, a plan to convert an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, to instead pump natural gas (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). It was pretty easy to predict that the hearing would elicit negative feedback, based on previous stories of residents unhappy with the location of a planned compressor station (see Update on Adelphia Gateway – Converting Oil Pipeline to Flow NatGas). And sure enough, many who spoke at the hearing were not happy.
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Update on Adelphia Gateway – Converting Oil Pipeline to Flow NatGas

Adelphia Pipeline route – click for larger version

One year ago, in November 2017, MDN shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, had been purchased by a subsidiary of New Jersey Resources and will get converted to flow Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline is called the Adelphia Gateway. In January of this year, NJ Resources filed an official application with the Federal Energy Regulatory Commission (FERC) to convert the existing pipeline to flow natural gas, and add various facilities, like meter stations and a compressor station (see Adelphia Gateway Pipeline Near Philly Files with FERC). The compressor station is planned for a residential neighborhood in Bucks County. The neighbors are most definitely not happy.
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Dominion Looking to Sell Gas-Fired Power Plants in PA, RI

Dominion Energy, headquartered in Richmond, VA, is a large utility and pipeline company providing ~6 million customers in 19 states with natural gas and electricity. Dominion not only flows energy to customers, it also generates it. In 2016, Dominion brought online a brand new, 1,358 megawatt, natural gas-fired generating plant in Brunswick County, VA (see Dominion Brunswick NatGas-Fired Plant Begins Electric Generation). Dominion built and now operates the Cove Point LNG export facility, which began exporting Marcellus gas in April of this year (see First-Ever Shipment of Marcellus LNG Leaves Cove Point, Maryland). In other words, Dominion really digs natural gas. Yet the company is rumored to be shopping two of its natgas-fired generating plants, looking to make $1-$1.5 billion. One plant, the Fairless Power Station, is located in Bucks County, PA near Philadelphia. The other, Manchester Street Power Station, is located in the People’s Republic of Rhode Island. So why on earth would Dominion, a company that really digs natgas, want to dump two of its power generating plants situated in large, urban areas? It all has to do with regulation…
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Trout Unlimited Launches Spy/Snitch Program for PennEast Pipeline

Let’s be right up front about how we feel about the innocent-sounding Trout Unlimited (TU). Four years ago the organization was outed as a radical, far-left environmentalist group–hellbent on opposing fossil fuels (see Trout Unlimited, Other Groups Outted as Radical Green Groups). We have zero respect for the organization. Yes, there are some well-meaning (hoodwinked, misguided) people who belong to it. Good people. But tricked into supporting an anti-American, anti-fossil fuel agenda. (You need to get out!) TU has just announced a new spy/snitch training program to keep an eye on the PennEast Pipeline–when it actually starts to get built. TU will soon begin training for a so-called “water monitoring” program in PA counties where PennEast will run–Luzerne, Carbon, Northampton and Bucks counties. To which we say, knock yourselves out. PennEast has nothing to hide. The pipeline won’t negatively impact waterways–not in any meaningful, long-term way. So if you want to spy and snitch, go right ahead. There won’t be anything to snitch about…
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Converted Oil Pipeline Near Philly Extends Open Season for NatGas

Earlier this month we shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook had been purchased by a subsidiary of New Jersey Resources will get converted to flow more Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline has been named the Adelphia Gateway. On Nov. 2nd the project began an “open season”–a period of time when shippers can reserve capacity along the pipeline. Such contracts typically run for 10-20 years and guarantee the pipeline (which will invest millions) can recoup its investment and make a profit. The open season was scheduled to expire on Nov. 20th, but Adelphia has extended the open season to Dec. 8th. Adelphia says the extension was to allow for the Thanksgiving holiday. Typically such an extension means the project hasn’t secured enough business to be profitable. We don’t have a feel one way or the other for this project. Perhaps a number of people did take off for the Thanksgiving holiday and this will give Adelphia a chance to button up previously expressed interest. Signing on the dotted line means an office full of lawyers will need to review it first–and lawyers like their vacations…
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PA Republican Senate Extends SE PA Drilling Ban in Newark Basin

As MDN has explained in a companion story appearing today (see PA Republican Senate Changes Lease Terms for Landowners), the PA legislature has slipped a number of “environmental riders” into one of the final budget bills. The riders are bits of legislation that have nothing to do with the budget or spending, but tacked on as a way of getting them passed without the mess of voting on them individually. One of those riders affects the potential to drill for oil and gas in southeast PA. Back in 2012, an eleventh hour deal was snuck into the Pennsylvania budget signed into law by then-Gov. Tom Corbett (see Republicans Sneak SE PA Drilling Ban into Budget Deal). An amendment was introduced to the budget that established a moratorium on drilling in southeastern PA in the South Newark Basin, a small area which stretches from New Jersey through Bucks, Montgomery and Berks counties in PA. Caving to pressure from the libs that elect them, RINOs (Republicans in Name Only) placed an ongoing moratorium on any kind of drilling–test wells or otherwise–in their region. Disgusting. However, Section 1607, as it is called, had this provision: “This section shall expire January 1, 2018.” Senate Republicans have once again screwed the drilling industry by removing the expiration date, but leaving the moratorium in place. There are certain conditions that must be met according to 1607 (see them below), but practically speaking, we doubt those provisions will ever happen, meaning there will never be drilling in southeast PA…
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PA Town Votes to Oppose PennEast Pipe; Not Even Coming Close

Talk about a waste of taxpayer time and money. The so-called leaders of Newtown Township in Bucks County (Philadelphia orbit) took time out to compose, debate, and pass a resolution opposing the PennEast Pipeline. Even though the pipeline isn’t coming anywhere near Newtown Township. What the vote reveals is that Newtown is led by far-left anti-fossil fuelers with nothing better to do than get on their soapbox and prance around discussing issues that don’t affect the residents of the town. Typical leftist politicians that believe they know better than you what’s best for you–even if it doesn’t even affect you…
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Japanese Now Own 2/3 of Marcellus-Powered Electric Plant in SEPA

Two weeks ago MDN brought you the news that Japanese company Sojitz Corporation had purchased a one-third (1/3) interest in the 488-megawatt Marcellus gas-fired electric plant being built in Birdsboro, near Philadelphia (see Japanese Co Buys 1/3 of Marcellus-Powered Electric Plant in SEPA). EmberClear plans to begin construction on the Birdsboro Power project in 2018, with an in-service date of June 2019. Word has just come that a second Japanese company, Tokyo Gas (a regional utility company in Japan) has purchased a one-third (1/3) interest in the Birdsboro project–meaning the Japanese will own 2/3 of the plant. However, investment firm Ares EIF will retain the final one-third ownership and provide “day-to-day management” of the facility. While the exact amount of the transaction was not disclosed, it’s said to be “tens of millions of dollars.” What’s up with Japan buying into our powergen projects? In the case of Tokyo Gas it’s crystal clear–they will participate in every aspect of building this project, so they can take their newfound knowledge back home and apply it there. Or depending on your point of view, you might say they want to steal our technology and trade secrets…
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Japanese Co Buys 1/3 of Marcellus-Powered Electric Plant in SEPA

Birdsboro Power Plant concept drawing

Speaking of Pennsylvania Marcellus gas-fired projects, here’s an update on a power plant we first told you about last October, coming to the Philadelphia area (see New NatGas-Fired Electric Plant Coming Near Philadelphia). In 2015, EmberClear filed an application to build a new 488-megawatt natural gas-fired electric plant in Birdsboro (Berks County). The new plant is called Birdsboro Power and requires various approvals before it can be built. The Federal Energy Regulatory Commission (FERC) is involved. PJM Interconnection is involved. And the PA Dept. of Environmental Protection is involved. All three have issued various permits and edicts in connection with the project. EmberClear plans to begin construction in 2018, with an in-service date of June 2019. As often happens with these projects, which cost big bucks to build, the Birdsboro plant has just taken on a major investor/joint owner, from Japan. Sojitz Corporation has just purchased one-third of the project for an undisclosed sum. Below is a bit more about Sojitz, and the latest details about the Birdsboro project…
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Latest Tax Marcellus Bill from Rep Tina Davis: Effective Rate of 11%

It’s another day, must be time for another liberal Pennsylvania Democrat to propose taxing the the Marcellus industry into oblivion, and right on cue PA Rep. Tina Davis (Bucks County, near Philadelphia) has introduced one. Her plan goes well beyond the plan offered earlier this week by PA Gov. Tom Wolf. Wolf’s plan is for a 7.5% tax, that taken with the existing state corporate income tax pushes an effective severance tax rate to well over 10%. That’s not enough for the tax ravenous Tina Davis: She not only wants a 5.2% severance tax with 4.6 cents per Mcf (effective rate of maybe 8% total), she wants to keep the current impact fee, which is another 3% (not the 1.9% claimed), creating an effective rate of somewhere around 11%. Let’s just save the Dems some time: Tax the Marcellus industry 99% and let those money-grubbing corporations keep 1%. That’s what PA Dems really want. What’s that? You say not all money earned by corporations (and citizens) belongs to the government? You silly goose. Of course it all belongs to the state…
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3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ

A third new pipeline has been proposed–seriously proposed and already in the planning stages–to carry Marcellus Shale gas from northeastern Pennsylvania all the way to New Jersey. Yesterday a consortium of four companies, including energy utility giant UGI, along with AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries announced the PennEast Pipeline, a 105-mile long, 30” diameter interstate natural gas pipeline. The new pipeline will cost $1 billion to build (providing 2,000+ jobs for seven months) and when finished, carry 1 billion cubic feet of natural gas per day. Here’s the full details for the new project…
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2 Spineless PA RINOs Join Call for High Marcellus Severance Tax

Several mainstream media outlets are trumpeting that “Republicans join the call for tax on Marcellus drillers.” Of course you have to read the fine print of the story to learn the so-called Republicans, which are really Republicans-In-Name-Only (RINOs), are really just two Republicans from the Philadelphia area where there is no drilling. They both want to stick their fingers into the pockets of landowners and drillers so they have funny money to throw around and buy votes with. Yes, we’re talking to you Gene DiGirolamo (Bucks County) and Tom Murt (Montgomery/Philadelphia counties). Shame on both of you.

The real story is this: Two spineless RINO sellouts from the Philly area “join the call” for obscene taxes on the drilling industry. There is no mass movement among Republicans in Pennsylvania to kill off the drilling industry with high severance taxes being advocated by just about every Democrat legislator and Democrat candidate in the state. We sure hope the people of PA have wised up to the Dem drivel about taxing one industry (shale drilling) to give the Dems (and RINOs) boatloads of money to squander on pet projects–the chief pet project being to put money into the pockets of people who will vote for them…
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