West Virginia

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    3 Mass. Kids Arrested for Blocking MVP Work in W.V.

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    Three radicalized children from Massachusetts–kids who irrationally hate fossil fuels–chained themselves to construction equipment in Monroe County, WV in an attempt to block work on the Mountain Valley Pipeline (MVP). It’s the latest tactic by the left to overthrow our system of laws and justice in a misguided attempt to stop man-made global warming. The three, one boy and two girls (aged 24, 21 and 18) delayed construction for “a few hours” before police “cut them out” and arrested them. All three were charged with misdemeanors: for trespassing, obstructing justice, and resisting arrest. If convicted, they could spend up to two and a half years in jail. Notice the kids are part of an organized Big Green movement. All three are out-of-staters, sent there to make trouble. We wonder if the glamour will wear off after they sit in a cold, mountain jail cell for a few months? Our only conclusion as to why these kids would behave like this is miseducation. They’re ignorant–of history, the U.S. Constitution, and frankly, of the real world. Too much time with their noses stuck in a cell phone or watching cartoons. No training in rational thinking. Notice (below) how Big Green spins the episode, that the police “threatened violence” against the protesters. Which means the police told the spoiled rotten kids, “stop it now or we’ll (gently) cut you out and take you to police HQ.” That’s how radicals define police “violence.” Here’s the news of the latest Big Green offensive against MVP–an offensive that uses ignorant kids…
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    WV DEP Holds Hearing on Proposed Injection Well in Upshur Co.

    Mountain V Oil and Gas owns a Marcellus Shale well drilled in 2014 in Upshur County, WV that was a bust. You don’t often hear about Marcellus wells that don’t produce. Because their Marcellus well is a non-producer, Mountain V wants to convert it into a wastewater injection well. The neighbors are not happy about it. The WV Dept. of Environmental Protection held a public hearing last week about the proposal. Twelve local residents spoke at the hearing–every one of them against the project. No one spoke in favor. Is that really a surprise? The comments made at the hearing referred to the potential for earthquakes and pollution of the water table. Here’s what the good (but misinformed) residents of Upshur don’t understand about injection wells: (1) There are hundreds of thousands of them across the country, and have been for decades. (2) The wastewater (brine) going down the proposed injection well first came up from the same deep sources–we’re just putting it back where it came from. (3) If the well is properly cased, and rest assured these wells are heavily regulated and regularly checked, there is no way for the wastewater to seep back up to the surface. The water was down there for millennia and didn’t make its way to the surface, so why would it now? (4) Earthquakes can happen, but only when massive amounts of fluids are injected into an existing fault, or crack, in the rock layers. Earthquakes from injection wells, at least in the northeast, are as rare as hen’s teeth. Look, in all honesty, we wouldn’t be overly thrilled with an injection well locating near us either. However, if you’re going to object, as a first step you need to get your facts straight. Here’s more about last week’s hearing and the lack of facts (and wild statements) that circulated at that meeting…
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    Utica Shale Beginning to Get More Love in PA and WV

    The Utica Shale is starting to get more love. No, not in Ohio where the play is already well-loved, but in Pennsylvania and West Virginia. Although it’s always been known that the Utica underlies the Marcellus and in fact covers a larger geography than the Marcellus, drillers have not targeted the Utica nearly as much outside of OH. Why? Because it’s nearly twice as deep as the Marcellus and costs more to tap it. The Marcellus is roughly a mile below the surface, and the Utica roughly two miles below. However, there is renewed interest in the Utica in PA and WV in 2018. Most of the Utica wells drilled in PA have, so far, been drilled by Hilcorp. JKLM is targeting the Utica in Potter County. SWEPI (Shell) has drilled a few Utica test wells, as has EQT, CNX and others. Most recently CNX and Seneca Resources mentioned targeting the Utica in their quarterly updates. Throw it all in the mix and what it spells is more Utica drilling on the way in what has, until now, been largely Marcellus country…
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    MarkWest to Remediate 2016 WV Mobley Plant Chemical Spill

    In February 2016 there was an accidental release of a hazardous chemical at the MarkWest Energy cryogenic processing plant in Mobley (Wetzel County), WV (see MarkWest’s Mobley Processing Plant Spills Hazardous Oil into Creek). The fluid in question is DOWTHERM™ MX Heat Transfer Fluid, a chemical used as as a heat transfer fluid meant for closed-loop systems. An estimated 3,000 gallons of the fluid spilled, some of it reaching the North Fork of Fishing Creek and some of that entered the water intake for the community of Pine Grove, WV. However, the plant (Pine Grove Water Works) was closed before any of the water was used by local residents–so there was no health threat. A month later MarkWest reported they were done cleaning up the spill and the Pine Grove Water Works was back up and running (see MarkWest Hazardous Spill at Mobley Plant Now Cleaned Up). We thought that was the end of it, but alas, it was not. The Office of Environmental Remediation (OER) at the WV Dept. of Environmental Protection (WVDEP) reports it has just accepted a “Voluntary Remediation Program” application submitted by MarkWest to address ongoing environmental conditions at the Mobley Plant related to the Feb. 2016 spill. The plan will look at current and future uses of the site and determine how best to prevent migration of anything leftover from the spill…
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    Army Corps Engineers Suspends MVP Permit for River Crossings

    The radical Sierra Club is claiming a victory in temporarily stopping construction work of the Mountain Valley Pipeline (MVP) at four river crossings in West Virginia. On Tuesday the Sierra Club and a mishmash of other radicalized groups filed a motion asking the Fourth District U.S. Circuit Court of Appeals to suspend a permit issued by the U.S. Army Corps of Engineers that allows MVP to construct the pipeline across streams and rivers in the Mountain State. The Clubbers’ tortured logic is this: When construction of the pipeline across a river, the stated standard is that construction can take no longer than 72 hours. MVP says it will need longer when constructing the pipeline across four rivers–Elk, Gauley, Greenbrier and Meadow. Therefore (say the Clubbers), MVP is in violation of the general permit issued by the Corps and that means ALL (not just those four rivers) construction should be stopped, immediately. The Fourth Circuit has not yet rendered a decision, however, the Corps itself said they had reviewed the standards and have (for now) rescinded the permit as it applies ONLY to those four rivers, NOT to any locations. So it’s a partial, and temporary, victory for the Clubbers…
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    More MarkWest Construction Under Way in Doddridge County, WV

    MarkWest Energy – Sherwood Complex

    MarkWest Energy’s Sherwood Complex in Doddridge County, WV has been in operation since 2012. Since that time, MarkWest has built and currently operates nine processing plants at the complex, capable of separating methane from NGLs. The plant continues to grow. MarkWest is currently building another two processing plants at the Sherwood Complex, to be done and in operation this year. And if that isn’t enough, MarkWest says there is potential to build another six (!) processing plants at Sherwood. As we previously noted, Sherwood is right now the fourth largest gas processing plant in the U.S., and by the end of this year, it will be number one (see MarkWest Building 6 New Processing Plants, 3 Fractionators in 2018). One of the primary reasons for the rapid expansion at Sherwood is Antero Resources, which uses the Sherwood operation to service its vast WV drilling program. Needless to say, the ever-expanding Sherwood facility is a huge blessing, economically, to Doddridge County. Here’s a deep dive into future plans for Sherwood, and how the plant benefits the local community…
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    TransCanada Pipe Construction Crew Helps Locate Missing WV Boy

    Little boy who went missing in WV

    It’s every parent’s worst nightmare. Last Monday afternoon a three year-old boy wandered into the woods near his home in Jackson County, WV and got lost. The parents could not find him. WV State Police and several local fire departments aided in a search effort, canvasing the woods. TransCanada is building the Mountaineer XPress Pipeline project several miles from where the toddler went missing. Upon hearing of the missing boy, the people in charge of the project flew into action, delivering supplies and port-a-potties to the searchers. They also provided maps of the area made by TransCanada–maps which ended up being instrumental in finding the boy. Some 15 hours after he went missing, on Tuesday morning, he was found–safe and sound. Authorities credit TransCanada as being instrumental in the process. TransCanada’s people didn’t do it for accolades. They did it because it was the right thing to do–even though it delayed the project and cost the company money. This episode paints a far different picture of pipeline companies than you typically hear about, does it not? Pipeline companies are not the heartless, “damn the environment and everyone who lives in the path of the pipeline” meme antis feed to sycophantic “reporters” in mainstream media. Quite the opposite. These are people who care about the work they do, and how it impacts the people where they do it. They care about the communities in which they work–and live…
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    WV Coal Industry Continues to Fight NatGas Electric Plants

    West Virginia has a long, proud history as a coal producer. And according to West Virginia Coal Association President Bill Raney, some 95% of the electricity produced and used in the Mountain State comes from coal-fired plants. However, natural gas burns cleaner than coal, and frankly, natgas is now cheaper than coal. Yet WV still has not permitted or allowed a single new gas-fired plant to be constructed. Why not? The obvious answer is because Big Coal is pushing back and pushing back hard. Last September WV’s Secretary of Commerce, Woody Thrasher, admitted publicly that his beloved state is unfriendly to new natgas-fired electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). In a speech before state legislators, Thrasher said while Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, WV has built NONE. Zero. Nada. Even though perhaps a dozen such projects have now been proposed. When will the situation change? If Big Coal has its way, it won’t…
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    Atlantic Coast Actual Pipeline Construction Begins in WV

    On Friday, the Federal Energy Regulatory Commission (FERC) issued Dominion Energy permission to begin construction of the actual pipeline for the Atlantic Coast Pipeline (ACP) project–in West Virginia. ACP is a (now) $6.5 billion project, up from a projected $5 billion due to delays from regulatory agencies and frivolous lawsuits filed by Big Green groups, that will run from WV through Virginia and into North Carolina–almost to the border with South Carolina. Until now FERC had allowed prep work, like tree cutting. But now actual pipeline construction can begin, which is a momentous occasion, worthy of celebration!…
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    Mountain Valley Pipe Continues to Get FERC Approval for Construction

    Despite all of the media attention on a handful of protesters who sit in the tops of trees or on top of a poll in order to block construction of the Mountain Valley Pipeline (MVP), the pipeline nonetheless continues to receive regular new permissions from the Federal Energy Regulatory Commission (FERC) to construct the actual pipeline and (yes), even to cut trees past the March 31 deadline. The good news is that MVP is on track to be completely built and flowing Marcellus/Utica gas by the end of THIS YEAR! Despite the best efforts of radical protesters and multiple lawsuits by Big Green groups. Recent FERC permissions for MVP include: (1) allow MVP to cut trees in Jefferson National Forest past the March 31 deadline; (2) build parts of the pipeline in Roanoke and Franklin Counties, VA; (3) work 24/7 on building a compressor station in Wetzel County, WV; and (4) build pipeline in Jefferson National Forest, on both the VA and WV sides…
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    WV DEP Lifts Block on Rover Pipeline Construction

    The vast majority of Rover Pipeline is done, and most of it is now up and running (see FERC Allows Rover Pipeline Startup in Michigan, Close to 100% Done). But there are a few spots here and there where small sections are still not complete. One of those is in West Virginia. In March, the WV Dept. of Environmental Protection (WVDEP) slapped Rover with a “cease and desist” order, stopping all construction of Rover in the state, because of inspections that found 14 violations of water pollution regulations (see WV DEP Orders Rover Pipe to Stop Construction for Violations). The violations occurred in Doddridge, Tyler and Wetzel counties. Violations ran the range of leaving trash behind at construction sites to improper perimeter controls (no erosion devices installed) to failure to clean up the roads they used. The good news is that last Wednesday, WVDEP told Rover they can now resume construction…
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    WV’s Thrasher Says Tariffs “Shouldn’t” Derail China Shale Investment

    West Virginia Secretary of Commerce, Woody Thrasher, once again addressed the issue of an ongoing trade war with China at yesterday’s West Virginia Oil and Natural Gas Association (WVONGA) conference at Oglebay Park. Last November Thrasher signed a memorandum of understanding with the Chinese government, an agreement in which the Chinese pledged to spend $83.7 billion over the next 20 years in WV’s shale and petrochemical sectors (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). So far, six months later, not one red yuan has been invested. And since that time, a trade war has erupted. President Trump told a number of countries, including China, that the U.S. has had enough of being screwed over in trade deals. It’s time to emphasize “fair” instead of “free” when it comes to trade. China (and other countries) have a history of “dumping” steel in our country–selling it at far below the cost of producing it. Such practices result in our steel companies closing their doors, sometimes permanently. Later on, when a country has the market cornered, the price goes up. Trump recently slapped China with a 25% steel tariff and 10% aluminum tariff. China isn’t happy. The question becomes: Will China use their promised $83.7 billion investment in WV as a bargaining chip in the trade war? Will China slow, or even cancel, their investments in WV’s shale industry? Back in April Thrasher, at another industry event, said he doesn’t think so (see WV’s Thrasher “Hopeful” First Chinese Project Announcement Soon). At yesterday’s WVONGA event, Thrasher reiterated that he believes there will be a flurry of announcements “soon” about the first projects China will invest in, and that China will not cancel their promised WV investments…
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    Will New WV Exec Order Speed Up Gas-Fired Power Plant Projects?

    WV Gov. Jim Justice

    Yesterday West Virginia Gov. Jim Justice issued a new Executive Order (EO)–the third of his tenure thus far. The new EO cuts through regulatory red tape and instructs all WV governmental departments that issue permits to prioritize “permits for projects of critical economic concern.” That would include permits for Marcellus/Utica Shale projects. The EO requires agencies to issue written reports to the permit applicant, the executive director of the state Development Office, and to the Governor, explaining why they haven’t gotten off their rear-ends and acted on a given critical permit. As we read about this interesting development, it immediately struck us that we hope the EO also affects the permitting process for new natural gas-fired electric plants. Last September WV Secretary of Commerce, Woody Thrasher, admitted publicly that his beloved state is unfriendly to new natgas-fired electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). In a speech before state legislators, Thrasher said while Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, WV has built NONE. Zero. Nada. Even though perhaps a dozen such projects have been proposed. The first sliver of light in that respect came in February of this year when finally the very first such project in WV was approved by the Public Service Commission (see Brooke County WV Power Plant Wins State Approval). So when we read about the new EO signed by Justice, our thoughts didn’t jump to permits for shale wells, our thoughts turned to permits stalled for new electric power plant projects–which use Marcellus/Utica shale gas…
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    EQT Sues WV for Passing Minimum Royalty Law re Flat Rate Leases

    Earlier this year the West Virginia legislature passed Senate Bill (SB) 360, which Gov. Jim Justice subsequently signed into law (see WV Gov Justice Signs Bill to Guarantee 12.5% Minimum Royalty). SB 360 overturns a ruling by the WV Supreme Court in Leggett v. EQT Production, a case in which the Supremes (in a very unusual move) reversed their own previous decision and allowed EQT to deduct post-production expenses in an old flat rate lease. In essence, SB 360 guarantees rights owners/landowners a 12.5% minimum royalty, regardless of post-production deductions–but only in flat rate leases. A flat rate lease is a lease in which a company pays a regular (in EQT’s case, annual) payment, regardless of how much oil/gas is produced. Traditionally drillers don’t deduct post-production expenses because the payments they make aren’t all that much anyway. But then EQT began to claim deductions, prompting a lawsuit that went all the way to the Supreme Court. The legislature aimed to “fix” what they considered an error in the court’s ruling. EQT claims the new law is unconstitutional and last week filed a lawsuit (copy below) asking a judge to block implementation of the law, set to take effect on May 31…
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    WV’s Thrasher “Hopeful” First Chinese Project Announcement Soon

    Yesterday the seventh Marcellus and Manufacturing Development Conference was held in Morgantown, WV. The event keynote speaker was Steve Winberg, the U.S. Dept. of Energy’s Assistant Secretary for Fossil Energy. He talked about the relationship between manufacturing and shale production. Fortunately for us, Winberg (part of the Trump Administration) said the DOE’s attitude is to not interfere with the shale miracle. Other speakers included Brian Anderson, director of the WVU Energy Institute. However, it was a brief comment made by WV Secretary of Commerce, Woody Thrasher, that really caught our attention. Last November Thrasher signed a memorandum of understanding with the Chinese government, an agreement in which the Chinese pledged to spend $83.7 billion over the next 20 years in WV’s shale and petrochemical sectors (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). So far, five months later, not one red yuan has been invested. What’s the holdup? For one thing, there’s a developing trade war (see Will Trade War with China Affect $83.7B Investment in WV Shale?). Thrasher said yesterday he doesn’t think the trade war will interfere with China’s WV investment (if wishes were horses…). Thrasher also said he’s “very hopeful in the near future that we’ll be able to announce the first project” using Chinese money. Now that is definitely good news–perhaps the biggest news coming from yesterday’s event…
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    WV’s Severance Tax Rate at 5% is Already Too High; Don’t Raise It

    It appears Pennsylvania is not the only state in the Marcellus/Utica region facing pressure to kill the drilling industry with high severance taxes. West Virginia is now facing a fight of its own. WV already has the highest severance tax among the three M-U producing states. Ohio’s effective severance tax rate is 1.3%. Pennsylvania’s effective severance tax rate (called an impact fee, roughly the same thing), works out to be around 2.9%. WV’s severance tax is an already-high 5%–yet in WV (like PA) teacher’s unions are pressuring politicians to raise the severance tax. In WV they want a boost to a “modest” 7.5%. It would make WV the highest severance tax in the lower 48 if it went to 7.5%. WV is rattled following an extended teacher strike, looking to prevent a future strike. While we’ve not read of any specific new proposals (bills) to increase the severance tax, folks from the drilling industry are worried enough that a past president of IOGAWV penned the following editorial on the topic…
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