FERC Tells Dominion to Flip Switch on Clarington Expansion Project
In June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The Clarington project, costing a modest $76.5 million, will allow Dominion to provide 250,000 dekatherms (Dth) per day of firm transportation service for CNX Gas, otherwise known as CONSOL Energy. Last August, FERC approved Dominion’s request (see FERC Approves Dominion WV/OH Compressor Project, Rips Anti Group). FERC gave Dominion a year to complete the project, but Dominion filed a request in July requesting more time. FERC agreed and has extended the project completion date an extra year (see FERC Grants Dominion Clarington Project a 1-Year Extension). Looks like Dominion didn’t need the extra time after all. Yesterday FERC granted Dominion permission to begin service for the expansion project…
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Yesterday EQT announced a pair of deals that will net the company another 60,000 Marcellus/Utica acres including 44 Marcellus wells producing a collective 44 million cubic feet equivalent per day (MMcfe/d) of natural gas. Most of the acreage (42,600) is in three West Virginia counties, with another 17,000 acres in three Pennsylvania counties. EQT is paying a total of $683 million for the two deals. In the first deal, EQT is buying Trans Energy, Inc., which will become a wholly-owned subsidiary of EQT. EQT is also buying Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (WV). In the second deal, EQT is buying 17,000 acres from an unidentified third party in southwestern PA, in Washington, Westmoreland and Greene counties. EQT describes the purchases as adding acreage to their “core development area.” You may recall that EQT closed a deal in July, just three months ago, to purchase 62,500 acres from Statoil in WV for $407 million (see 
We have, as long as we’ve been writing the MDN website, warned that the federal Environmental Protection Agency, particularly under B.H. Obama, is an out-of-control, lawless, aggressive cancer on the country. The EPA has repeatedly attempted to UNCONSTITUTIONALLY control oil and gas drilling–something only state governments have the right to regulate. The EPA has repeatedly sought to influence (i.e. control) o&g development via other means–like expanding the Clean Water Act, the Clean Air Act, and Waters of the United States (WOTUS). The latest evidence of EPA’s illegal overreach comes with EPA’s bullying of the Federal Energy Regulatory Commission (FERC). EPA is telling FERC to get its head screwed on straight with respect to an approval for two Marcellus/Utica projects–Leach Xpress and Rayne Xpress Expansion projects. EPA says FERC is ignoring mythological man-made global warming bullcrap in their review of the projects, and EPA is demanding a meeting with the top brass at FERC to bully them into submission…
Since April of 2014, MDN has written about and monitored a new project to build a $615 million electrical generating plant in Marshall County, WV that will burn Marcellus Shale gas (see 
In April 2014 MDN brought you the exciting news that a father and son team, Andrew and Matthew Dorn (based in Buffalo, NY) would build a 549-megawatt electric generating plant, powered by Marcellus Shale, in Moundsville (Marshall County), WV (see 
Brooke County, WV makes it four for four in denying Statoil’s request to refund tax overpayments made by the company. Statoil, based in Norway, is a big player in the West Virginia Marcellus Shale. Statoil paid property taxes to Brooke, Marshall, Ohio and Wetzel counties (all in WV) in 2015 and later found, during an audit/review, that they had overpaid those counties. They overpaid Brooke by $1.8 million, Ohio by $2.9 million, Wetzel by $1.6 million and Marshall by $342,000. We previously reported on Marshall’s refusal to refund the money (see 
It’s not all doom and gloom in the Marcellus/Utica. Seems like for the best part of a year we’ve only heard about layoffs and companies filing for bankruptcy, due to the major slowdown in drilling in our neck of the woods. But that’s not an accurate picture. Take an old steel plant in the Wheeling, WV area that had been closed for 30 years. A new business now occupies the old Wheeling-Pittsburgh Steel Corp. plant in Benwood, WV. JLE Industries has set up shop in the old plant with (so far) 25 full-time workers to inspect and repair metal tubes used in shale drilling. Chris Harris, the owner/operator, believes the company will continue to grow…
Statoil, based in Norway, is a big player in the West Virginia Marcellus Shale. Statoil paid property taxes to Marshall County, WV in 2015 and later found, during an audit/review, that they had overpaid the county by some $300,000. Ouch. So Statoil politely asked for their money back. Marshall County has said “nei.” The WV Tax Department argues that Statoil “acted negligently” and exercised “poor judgment” in not finding the mistake sooner. At least that’s how we read it. So Marshall and WV intend to keep the overpayment. Apparently Marshall isn’t the only county where Statoil says it overpaid on taxes. The company is also seeking refunds in Wetzel, Ohio and Brooke counties as well…
It will be fun to watch how anti-fossil fuelers will take this news–and attempt to spin and demagogue it. Blue Racer Midstream, a joint venture between Caiman Energy II and Dominion, owns several natural gas processing and fractionation plants, 650 miles of natgas gathering pipelines, and 155 miles of NGL and condensate pipelines in OH and WV. Blue Racer is a privately-held company, so we don’t have SEC reports and public statements about the company. However, every now again Blue Racer’s upper management shows up at an industry conference, as they did a few weeks ago at the Utica Midstream Seminar in Canton, OH (see 
In December MDN told you that Axiall Corporation, a large petrochemical manufacturer, had made a final investment decision to move ahead and build a $3 billion ethane cracker/petrochemical facility in Louisiana (see 
It’s been a while since we’ve checked in on the proposed 549 megawatt, $615 million electrical generating plant to be built near Moundsville (Marshall County), WV. At last check almost a year ago, Moundsville Power was on schedule for an opening in 2018 (see 
Details are just now coming to light of a new E&P (exploration and production, or drilling) company headquartered in Pittsburgh and focused totally on the Marcellus and Utica region. Until now the company has flown under our radar. The company is American Petroleum Partners (APP)–not to be confused with Aubrey McClendon’s American Energy Partners (AEP)–and is headed by Rice Energy alumnus Varun Mishra, who is the founder and CEO. The big news is that last September Mishra’s new company, founded in 2014, received a major injection of investment capital. Apollo Global Management invested $411 million in APP with the option to double it up to $800 million. MDN has it on very good authority that although APP quietly issued a press release about this last September (see it below), the company has intentionally kept the news quiet. Not any more! Big mouth MDN is blabbing it to the world. Below are the bits and pieces we’ve been able to put together about this newest Utica/Marcellus driller…