Statewide WV

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    Robert Murray Exposed as Funding Opposition to WV NatGas Plants

    Robert Murray of Murray Energy – the man behind the OVJA curtain

    In July MDN brought you an article that exposes the Ohio Valley Jobs Alliance (OVJA) as a front group for Murray Energy–coal people trying to block new natural gas-fired electric plants from getting built in West Virginia (see OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants). A new article appearing the the Charleston Gazette-Mail goes deeper, ripping the mask off to reveal Robert Murray (CEO of Murray Energy) as the puppet master pulling the strings of OVJA.
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    Dominion’s Supply Header Pipe to Feed Atlantic Coast Pipe

    A part of Dominion’s Atlantic Coast Pipeline (ACP) project is a less-talked-about, smaller pipeline called the Supply Header Project. As indicated by its name, the Supply Header is a short, 37.5-mile pipeline at the “head” of ACP, a pipeline that will flow natural gas from West Virginia, Ohio and western Pennsylvania into the top of (i.e. supply) ACP–shale molecules that will eventually go as far south as North Carolina.
    Read More “Dominion’s Supply Header Pipe to Feed Atlantic Coast Pipe”

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    Murray Energy Continues to Block Gas-Fired Plants in WV

    In July MDN said it’s time to reveal who is blocking new gas-fired electric plants in West Virginia (see OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants). WV has a long, proud history as a coal producer. According to West Virginia Coal Association, 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. Last year then-WV Sec. of Commerce Woody Thrasher observed that Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, while WV has built NONE. Why not? Because of Robert Murray, CEO and founder of Murray Energy, one of the largest independent coal mine operators in the U.S. Bob Murray is using a front organization called Ohio Valley Jobs Alliance (OVJA) to file a blizzard of frivolous lawsuits that have kept all new gas-fired plant projects from being built in WV. Three such plants have been on the books, planned, for years. The first plant may begin construction this year (see WV Close to Starting Construction on First Natgas-Fired Plant). That is, it will start construction if the project sponsors can beat back yet another challenge by the Murray-backed OVJA to the issuance of an air permit. The thing that frosts us is that Murray Energy continues to deny that it is the one funding/behind OVJA…
    Read More “Murray Energy Continues to Block Gas-Fired Plants in WV”

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    WV Shale Industry Pushes Back Against Severance Tax Increase

    What is it about teachers’ unions that makes them so greedy for other people’s money? We’ve told you, for years, about the quest by Pennsylvania’s teachers’ unions (most of them in the Philadelphia area) who want to raid the coffers of Marcellus drillers via a confiscatory severance tax slapped on top of an existing impact tax slapped on top of corporate income taxes. You can never have too many taxes in education-land. That’s the only way they get paid. In West Virginia it’s the same routine. WV already has a severance tax, a nosebleed-high severance tax of 5% (one of the highest in the country). And yet teachers want to increase it–so they can grab that money for moi (see WV Teachers Get Greedy, Want to Boost Already-High Severance Tax). Ever-vigilant, the shale industry is pushing back against the money-grabbers. At a recent “interim meeting” of the WV legislature, Anne Blakenship, executive director of the West Virginia Oil and Natural Gas Association (WVONGA), told legislators that the oil and gas industry is not asking for a reduction in the severance tax, but they ARE asking that the rate not go up. Phil Reale from the West Virginia Independent Oil and Gas Association (WV IOGA) said, “We certainly don’t want to be taxed more.” Let’s hope lawmakers were listening and not looking at their smart phones…
    Read More “WV Shale Industry Pushes Back Against Severance Tax Increase”

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    WV Consumers Saved $4B Over 10 Years Thx to M-U Shale

    Although the push is on to get Marcellus/Utica molecules to new markets where they can fetch higher prices, there is a group who has benefited in a major way from an abundance of cheap, clean-burning shale gas. That would be the residents and businesses located in West Virginia. Industry group Consumer Energy Alliance (CEA) has just published a new report that reveals WV residents and businesses have saved a cumulative $4 billion from 2006-2016 as a result of the decreasing price of natural gas in the state. You may recall not long ago CEA published a similar study for Pennsylvania (see PA Consumers Save $30B Over 10 Years Thx to Marcellus Shale). Yes, PA’s numbers were much bigger than WV’s, but PA has more population (12.8 million in PA vs. 1.8 million in WV), therefore more chances for savings. And PA has more natgas in the ground than WV. But still, $4 billion in savings is nothing to sneeze at! That’s $4 billion in money in people’s pockets that didn’t come from other people’s pockets (via taxes) and got spent on goods and services with a beneficial ripple effect throughout the economy. Here’s the CEA report on the great news that West Virginian’s hit the $4 billion lottery in shale…
    Read More “WV Consumers Saved $4B Over 10 Years Thx to M-U Shale”

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    Responding to Sore Loser Antis re Shale Court Cases

    Blond Boy Crying

    Ever notice how antis get all hot and bothered when they lose a court case? They holler and scream and rant and rave. Some even lay down and roll on the floor like two-year-olds. The refrain is always the same: “The court sided with the natural gas industry!” But that claim is not true. The editorial writers at the Charleston (WV) Gazette-Mail recently penned an editorial that, in so many words, tells antis to grow up. They do an excellent job of pointing out the courts are not siding with the industry, they’re siding with the law. Which is a strange and unfamiliar concept for many snowflake antis who were never told “NO” by their parents…
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    Southwestern Sells Fayetteville Shale, Now Focused 100% on M-U

    Some exciting news to share. Southwestern Energy, headquartered in Texas, has cut a deal to sell all of their Fayetteville Shale (Arkansas) assets to Flywheel Energy for $1.865 billion in cash. The sale makes Southwestern a pure play, 100% focused driller on the Marcellus/Utica region (i.e. Appalachia). What will Southwestern do with an extra $1.865 billion? According to their announcement: (1) Spend $900 million of it on retiring IOUs (“notes”) previously issued. That is, debt retirement. (2) Buy back up to $200 million in outstanding shares of stock. (3) Spend $600 million of it over the next two years (2019 & 2020) on more Marcellus/Utica drilling. But not just any M-U drilling. Southwestern owns acreage in both northeastern PA and the northern panhandle of WV (with a some acreage in Washington County, PA). According to Southwestern’s announcement, the extra $600 million will go to drilling in the company’s “liquids-rich Appalachia assets.” Northeastern PA is dry dry dry–no liquids. WV landowners brace yourselves–Southwestern will soon bring an extra $600 million (over half a billion dollars) worth of drilling to your area. If you’re signed with Southwestern and haven’t yet seen drilling, you now stand a much better chance! Here’s the exciting news, along with extra resources we’ve located to better help you understand the news…
    Read More “Southwestern Sells Fayetteville Shale, Now Focused 100% on M-U”

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    WV’s Acting Secretary of Commerce is MIA – Hurting Investment?

    In an act still befuddling for us, West Virginia Gov. Jim Justice fired Commerce Secretary Woody Thrasher in June (see WV Commerce Secretary Who Brokered $83B China Deal…Fired). Thrasher took over as Commerce Secretary in January 2017 as part of the new Gov. Jim Justice Administration. Thrasher is “the guy” most responsible for putting together the massive $83.7 billion deal signed by China last November to invest in WV shale and petrochemicals (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). It was the relationships established by Thrasher that led to that deal. So what happened to Thrasher? Why was he fired? It has nothing to do with the China deal. Anyway, Justice appointed W. Clayton Burch as Acting Secretary of Commerce. According to attendees at the recent West Virginia Chamber of Commerce Annual Meeting and Business Summit, nobody has seen Burch. Or at least, almost nobody. The head of the Chamber had face-to-face meeting with him once. Business leaders and legislators in WV are grumbling that they haven’t seen or heard from Burch since his appointment 80 days ago. It’s pretty obvious he’s just filling in until Justice gets off his derriere and appoints a new, permanent Secretary. The concern is that important projects, like the $83.7 billion deal with China, are suffering. Who will invest in WV if there’s no one to make decisions and propel projects forward?…
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    MVP 2nd Big Win This Wk – 4th Circuit Lifts Stay of Water Permit

    As we reported yesterday, EQT Midstream’s Mountain Valley Pipeline (MVP) got some excellent news–that the Federal Energy Regulatory Commission had lifted a stop-work order on the project (see FERC Lifts Mountain Valley Pipe Stop-Work Order, Rehiring). However, two clouds remain over the project, both created by the Fourth District U.S. Circuit Court of Appeals in response to lawsuits from the Sierra Club. One of those clouds is from the Fourth Circuit overturning permits issued by the U.S. Forest Service and Bureau of Land Management that allows MVP to cross 3.5 miles of Jefferson National Forest in West Virginia and Virginia (see Court Cancels Permits for Mountain Valley Pipe on Fed Land). EQT is working on resolving the issue so that USFS and BLM can reissue permits that will pass muster with the court. The other cloud appeared when the Sierra Club convinced the Fourth Circuit 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 West Virginia. The Clubbers got the court to suspend stream and river crossings based on a technicality–that MVP could not, in the case of four river crossings, get the work done within the 72 hour period stipulated by the permit. Therefore the court suspended work at all 591 stream/river crossings the pipeline traverses in WV (see Sierra Club Succeeds in Delaying MVP Project in WV via Court Order). In early July, the Army Corps reworked and reinstated the permit as it applies to the four river crossings in question (see Army Corps Engrs Reinstates MVP Permits for 4 WV River Crossings). The good news is that the Fourth Circuit has granted a motion by the Army Corps to reinstate its permits for all stream/river crossings for MVP. Sunlight is breaking through!…
    Read More “MVP 2nd Big Win This Wk – 4th Circuit Lifts Stay of Water Permit”

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    FERC Approves Mountaineer XPress Pipe Rate Increase

    We spotted a story that contains information we don’t fully understand. Columbia Gas Transmission is currently building the Mountaineer XPress Pipeline, a $2 billion, 170-mile pipeline that will flow 2.7 billion cubic feet (Bcf) per day of natural gas from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). At 2.7 Bcf/d, Mountaineer XPress is the second largest (by volume) new pipeline project for the Marcellus/Utica region–second only to Rover’s 3.25 Bcf/d pipeline. It is a big and important project. When Columbia (aka TransCanada) filed the original application, approved by the Federal Energy Regulatory Commission, they sought permission to charge $9.827 per dekatherm (one dekatherm is equivalent to one thousand cubic feet, or 1 Mcf) to flow gas along the pipeline. Put another way, shippers without a contract who want to ship along the pipeline will pay $9.83/Mcf to ship gas. Since gas typically fetches less than $3/Mcf, how can you make any money? That’s what we can’t figure out. Perhaps one of our sharp MDN readers can enlighten us? MDN Note: We have THE BEST readers! Dmitry Brown, a Senior Analyst with UGI Energy Services, wrote to clear up our confusion. The prices are per month, not per day. Shippers on MXP were expecting to pay $9.827/Mcf/month, or $ 0.32/Mcf/day. Columbia recently filed a request with FERC to increase the charge from $9.83/Mcf to a whopping $14.66/Mcf! The reason, according to Columbia, is that project costs have ballooned from $2 billion to $3 billion, “related to contractor labor costs, inspection costs, and outside services costs that substantially exceeded the contingency established for such charges.” Last Friday FERC approved the 49% increase. Now shippers will have to pay $14.663/Mcf/month, or $0.48/Mcf/day. Quite an increase…
    Read More “FERC Approves Mountaineer XPress Pipe Rate Increase”

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    China Official Says $83.7B Deal with WV Still On, Some Progress

    Some encouraging words, but also some outright lies, coming from Ling Wen, president of China Energy Investment about China’s planned investment in West Virginia. Wen addressed reporters yesterday in Hong Kong, and some of the conversation turned to China Energy Investment’s 20-year deal to invest $83.7 billion in WV’s shale and petrochemical industries (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). Months ago we speculated that the impending trade war with China might put that investment on hold, a fear that was confirmed in June. Chinese officials were supposed to attend the Northeast U.S. Petrochemical Construction Conference in Pittsburgh to announce the first round of investments in WV. However, Brian Anderson, director of the West Virginia University Energy Institute, said given the trade war with China, the officials elected to stay home instead. Anderson said at that time, “The pending trade war has put this project in jeopardy” (see Trade War Puts $83.7 Billion Chinese Investment in WV on Hold). But a few weeks later Anderson changed his tune. He told a reporter, “In terms of the development process, we continue to move forward…We’re even working on the next potential visits by officials and team members, so it’s not just the high-level executives, but development teams” (see $83.7B Chinese Investment in WV Shale & Petchem Still Alive?). Yesterday Ling Wen said even though there is an ongoing trade war between China and the U.S., the WV deal is still on. That’s good news. Wen also said that media reports that China cancelled trips “was not true.” That’s an outright lie. They did cancel trips in June…
    Read More “China Official Says $83.7B Deal with WV Still On, Some Progress”

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    WV Teachers Get Greedy, Want to Boost Already-High Severance Tax

    We’ve written, forever, about the quest by Pennsylvania’s teacher’s unions (most of them in the Philadelphia area) who want to raid the coffers of Marcellus drillers via a confiscatory severance tax slapped on top of an existing impact tax slapped on top of corporate income taxes. You can never have too many taxes in education-land. That’s the only way they get paid. Neighboring states like Ohio and West Virginia already have a severance tax. It’s hard comparing apples to apples, but essentially PA drillers pay a bit more than OH drillers, but a whole lot less than WV drillers. The severance tax in OH is 1.25%. In WV the severance tax is a whopping 5%. And yet, amazingly, the teacher’s unions in WV are now clamoring to boost the severance tax even more! They want to boost the tax by 2.5% to 7.5%–which would kill the Marcellus/Utica industry in the state. It would be a death sentence. The West Virginia Oil and Natural Gas Association (WVONGA) is on the case, pushing back against this lunacy…
    Read More “WV Teachers Get Greedy, Want to Boost Already-High Severance Tax”

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    FERC Lets MVP Restart Work on 25% of Pipe; MVP Lays off ‘Thousands’

    The Federal Energy Regulatory Commission (FERC) has had a change of heart–sort of–with respect to their stop-work order issued to Mountain Valley Pipeline (MVP). We previously told you that on August 3, FERC told MVP to stop all construction prompted by an order from the U.S. Court of Appeals for the Fourth Circuit vacating permits issued for the project as it crosses 3.5 miles of Jefferson National Forest in West Virginia and Virginia (see FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA). In a letter to FERC this past Tuesday, MVP asked FERC to reconsider and allow them to restart construction for at least part of the pipeline. FERC agreed and partially lifted the stop-work order a day later, on Wednesday. The new order allows MVP to work on the project for 77 of its 303 miles–about 25%. However, in a sad announcement, MVP said because so much of the project remains (for now) idled, it is laying off 50% of the workers who had been working on it. It’s estimated that around 6,000 people are employed directly or indirectly on the project, which means “thousands” (perhaps as many as 3,000 people) are now out of work–thanks to the Sierra Club and their lawsuit. Hey, how many jobs has the Sierra Club created? What’s that? NONE?! And how many jobs has the Sierra Club destroyed? We’d estimate it to be in the tens of thousands. MVP also announced that due to the ongoing work stoppage and delays, the project completion and in-service date has now slipped to the end of next year–an additional nine months. It’s a sad day indeed…
    Read More “FERC Lets MVP Restart Work on 25% of Pipe; MVP Lays off ‘Thousands’”

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    Atlantic Coast Pipeline Asks FERC to Lift Stop-Work Order

    Borrowing a chapter from EQT and their Mountain Valley Pipeline project, Dominion Energy has asked the Federal Energy Regulatory Commission (FERC) to lift a stop-work order for its 600+ mile Atlantic Coast Pipeline (ACP) project. On Tuesday MVP sent a letter to FERC requesting the agency lift it’s stop-work order for them (see Mountain Valley Pipe Asks FERC to Lift Stop Work Order). A day later, yesterday, ACP did the same thing. Last week a federal court pulled permits for approximately 100 miles (of 600 miles) for ACP in response to a frivolous lawsuit filed by the anti-American Sierra Club (see FERC Shuts Down ALL Work on Atlantic Coast Pipeline). The Clubbers convinced the Fourth Circuit Court of Appeals to overturn permits granted by the U.S. Fish and Wildlife Service and the U.S. National Park Service, granted to ACP to cross the Blue Ridge Parkway. The court, in rolling back ACP’s permits, told FERC they should shut down work on the entire project until this matter is resolved. Last Friday FERC did just that. Yesterday Dominion politely asked FERC to ignore the court and lift the ban for those portions not part of the actual court order. Dominion got some moral support from West Virginia’s congressional delegation in their effort. Senators Joe Manchin and Shelley Moore Capito, along with Rep. David McKinley wrote a letter to FERC asking the agency to lift the stop-work order for both ACP and MVP…
    Read More “Atlantic Coast Pipeline Asks FERC to Lift Stop-Work Order”

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    WV Supreme Court Crisis – House Votes to Impeach Sitting Judges

    What in the world is going on in West Virginia? Last Friday in our “best of the rest” list of energy stories, we ran a brief piece about a WV House panel voting to impeach the remaining four (of five) sitting WV Supreme Court justices, claiming the justices had abused taxpayer funds (see Energy Stories of Interest: Fri, Aug 10, 2018). We didn’t think much of it at the time, partially because it was a CNN story–a known source of fake news. Yet the news, in this case, was not fake. On Monday the full WV House voted to impeach all of the sitting justices. One them (a Democrat) promptly resigned her position so that Gov. Jim Justice could not replace her with his own pick. Instead, her office will go on the ballot this November. The Wall Street Journal ran an article yesterday outlining in more detail what the alleged charges are (bordering on embezzlement), and speculating on what happens now. We’re interested in this story because earlier this year it was this group of justices that reversed itself in a highly unusual practice to allow EQT to deduct post-production expenses from flat rate leases (see WV Supreme Court Reverses Itself, Post-Production Deductions OK). That sparked a rebellion in the WV legislature which led to a new law reversing the Supreme Court’s ruling (see WV Gov Justice Signs Bill to Guarantee 12.5% Minimum Royalty). There are other oil and gas cases that may be impacted by a wholesale change in the court as well. Here’s the latest on this developing situation in WV…
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    WV DEP Proposes Changes in Pipeline Stream Crossing Permit

    West Virginia has just published a draft revision for terms and conditions under which the state will issue a “Section 401” water permit for federally approved pipeline projects. Under the federal Clean Water Act (CWA), the federal government delegates some of the responsibility in approving a pipeline project to the individual states. It’s a small but important part of the regulatory pie. Under Section 401 of the CWA, states get one year to review a pipeline project–to evaluate where that project will cross streams and rivers. If the state doesn’t like something about the plan, they tell the pipeline company and the plan gets revised. That’s how it’s supposed to work. Instead, some states (like New York) are abusing Section 401 and simply refusing to issue the permit, effectively killing entire pipeline projects. That’s not the intent of the regulation, something Congress is now looking to fix. We can’t have tinhorn dictators like Andrew Cuomo telling other states (like Pennsylvania) that you can no longer build pipelines into or through a neighboring state. That’s why approval of interstate pipeline projects resides at the federal level and not the state level–to prevent one state holding another hostage. WV has had some issues of their own with respect to Section 401 approvals (see WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline). Perhaps because of previous problems, like the issue with MVP, the WV Dept. of Environmental Protection has just floated proposed changes to the criteria they use in awarding a Section 401 permit…
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