Statewide WV

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    Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe

    In a pattern that has become obvious, and disturbing, the radicalized Sierra Club has once again prevailed in shutting down work on a second mammoth pipeline project–Dominion’s Atlantic Coast Pipeline (ACP)–by concentrating their legal arguments at one small, specific point of the project. This happened with Mountain Valley Pipeline (MVP). As we reported yesterday, the Federal Energy Regulatory Commission (FERC) told MVP to stop work on the entire project, at least for now (see FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA). The Sierra Club convinced the without-experience-in-the-oil-and-gas-industry judges of the federal Fourth Circuit Court of Appeals to overturn permits granted by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM) to build MVP across 3.5 miles of Jefferson National Forest, on the border of WV and VA. This time, with ACP, the Sierra Club convinced the Fourth Circuit to overturn permits granted by the U.S. Fish and Wildlife Service (FWS) and the U.S. National Park Service (NPS) granted to ACP to cross the Blue Ridge Parkway. However, the rolled-back permits affect more of ACP than MVP–about 100 miles of work out of 600+ miles. The court, in rolling back ACP’s permits all but told FERC they need to shut down work on the entire project until this matter is resolved. The court can’t order FERC to do so, but they strongly cautioned FERC that they should do so. Since FERC stopped work on MVP, it stands to reason they will do it with ACP too. So lightening has now struck twice, and it’s not good. Dominion maintains they will continue to build ACP except for those areas where the Fourth Circuit has rolled back permits. In other words, they’ll keep building it in North Carolina and some locations in WV. All eyes are now on FERC. We hate to say this, but our guess is that FERC will shut down the entire ACP project, for now. It’s virtually the same scenario as MVP which FERC elected to shut down. Why would this project be any different?…
    Read More “Federal Court Stops Works on Some (All?) of Atlantic Coast Pipe”

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    FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA

    The radical Sierra Club can claim a new temporary victory in its war to stop a major natural gas pipeline. We previously told you the Clubbers, who use money from donors to weaponize our own court system against us, convinced the U.S. Court of Appeals for the Fourth Circuit to overturn permits issued by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM) that allows EQT Midstream’s 303-mile Mountain Valley Pipeline 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). The court says USFS and BLM didn’t come to the right conclusion about sedimentation and erosion impacts of MVP. The judges (who don’t know a thing about these issues) say USFS and BLM’s contention that impacts can be adequately mitigated is in error. Because the project is stopped at that one tiny 3.5-mile location, on Friday the Federal Energy Regulatory Commission (FERC) issued a stop work order for the entire project. At least for now. In the stop work order, FERC indicates they think the USFS and BLM will soon reissue the permits overturned by the Fourth Circuit, and when that happens, work on the rest of the project will resume. But FERC can’t predict when that will happen, so in the meantime, all work (except to stabilize certain areas to protect against erosion) must stop. What gripes us is that Sierra Club radicals were able to shut down an entire project by concentrating on a technicality at one, small point. What a disgusting, anti-American organization. MVP issued a statement this morning to say the the pipeline will get built, and will likely keep its schedule of going online in the first quarter of 2019…
    Read More “FERC Shuts Down ALL Work on Mountain Valley Pipeline in WV, VA”

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    WV’s Top Brass Meeting with Chinese Next Week re $83.7B Deal

    A little over two weeks ago MDN wrote a post speculating about whether or not China’s deal to invest $83.7 billion in West Virginia shale and petrochemicals is now dead, given the current “trade war” with China (see $83.7B Chinese Investment in WV Shale & Petchem Still Alive?). 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 now on with China, the officials elected to stay home instead. Anderson said, “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 appeared to change 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?). Now comes word that next week, on Aug. 9, both WV Congressman David McKinley and WV Gov. Jim Justice will meet with Chinese officials “to discuss the future of the investment deal.” No word on whether that meeting is in WV or in China. McKinley would not comment on specifics about the meeting, but he did say he thinks the $83.7 billion Chinese investment is still on track and will happen…
    Read More “WV’s Top Brass Meeting with Chinese Next Week re $83.7B Deal”

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    Court Cancels Permits for Mountain Valley Pipe on Fed Land

    The Sierra Club and two other far-out, radical “environmental” groups have scored a minor victory in convincing the U.S. Court of Appeals for the Fourth Circuit to overturn permits issued by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM) that allows EQT Midstream’s Mountain Valley Pipeline to cross 3.5 miles of Jefferson National Forest in West Virginia and Virginia. The court says USFS and BLM didn’t come to the right conclusion about sedimentation and erosion impacts of MVP. The judges (who don’t know a thing about these issues) say USFS and BLM’s contention that impacts can be adequately mitigated is in error. Ever notice how some judges love to tell other people how to do their jobs? In practical terms, the decision is merely an irritation–affecting maybe 1% of the overall project. But the broader implications are troubling. The Clubbers and their friends have a similar case against MVP at the same court (Fourth Circuit) that asks the court to block construction of MVP throughout Virginia on the theory that a stream crossing permit issued by the U.S. Army Corps of Engineers is faulty (see Army Corps Engrs Reinstates MVP Permits for 4 WV River Crossings). Will the Fourth Circuit judges now tell the Army Corps how to do their job too? That’s the strategy outlined in the Sierra Club’s arrogant, boastful press release following the decision stopping construction of MVP in Jefferson National Forest…
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    EQT Still Fighting WV Minimum Royalty Law for Flat Rate Leases

    Follow the bouncing ball. 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). The new law 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 old flat rate leases. 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 landowners get are piddly anyway. But 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 in April filed a lawsuit asking a judge to stop the law from taking effect (see EQT Sues WV for Passing Minimum Royalty Law re Flat Rate Leases). WV responded in June, asking the judge to dismiss EQT’s lawsuit (see WV Files Motion to Dismiss EQT Lawsuit Targeting Royalty Law). And now the ball has bounced again. EQT just filed paperwork asking the judge to deny the state’s motion to dismiss the lawsuit, claiming the new law improperly invokes “police power”…
    Read More “EQT Still Fighting WV Minimum Royalty Law for Flat Rate Leases”

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    Do Property Values Along Pipeline Routes Go Down? Not in WV

    One of the oft-repeated canards by antis is that having a drill pad near you, or a pipeline crossing your property, will devalue (lower the value) of your property’s assessment and worth. If you want to sell the property you won’t get as much for it–if you can sell it at all. Who wants to live near a big, ugly drill site, or have an “explosive” pipeline running near the house? Except you can’t even see a drill pad from more than a few hundred feet away after the wells are drilled, and when the pipeline is in the ground and replanted over the top of it–you don’t see or even think about it. Let’s take the later case, of pipelines. Is there evidence that when a pipeline passes through your property, the value goes down? According to property assessors in West Virginia, the answer is “no.” At least not in the short term. Longer term, they say, will have to be watched. IF there are more incidents like the landslide that caused the Leach XPress pipeline to explode, maybe there will be an impact on assessments. But then, if you live in an area where there are frequent landslides, you have bigger valuation problems than a pipeline running through it…
    Read More “Do Property Values Along Pipeline Routes Go Down? Not in WV”

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    WV Driller Northeast Natural Energy Grows – Fracking Petri Dish

    Northeast Natural Energy (NNE) is a small-to-midsized driller headquartered in Morgantown, WV. It’s a young company, drilling its first shale well in 2013. In April 2017 MDN reported that NNE had obtained $300 million of investment from two investment firms (see WV Driller Northeast Natural Energy Gets $300M Investment). They’ve put the money to good use. NNE owns 56,000 acres of leases “in the heart of the Marcellus Fairway,” with 44,000 acres in WV and 12,000 acres in southwestern PA. The company has drilled and brought online 57 shale wells. By this time next year the company expects that number to be nearly 100. One of the most interesting things about NNE is its involvement with government and university researchers. NNE drilled several test shale wells near Morgantown. The wells are part of an ongoing laboratory experiment that measures and pokes and prods everything, in an effort to learn more about shale drilling and its impacts. NNE’s test wells are a sort of living fracking petri dish. Reams of data pour in and get analyzed. Our friends at Kallanish Energy have done a deep dive into NNE. Here is a portion of their insightful report on this young and growing driller…
    Read More “WV Driller Northeast Natural Energy Grows – Fracking Petri Dish”

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    WV Gov. Justice Perpetrating an Injustice on NatGas Developer

    Steven B. Hedrick

    In June MDN told you about a controversy swirling around Steven B. Hedrick, CEO of Appalachia Development Group and also CEO of the non-profit Mid-Atlantic Technology, Research and Innovation Center, or MATRIC (see Manufactured Controversy re $10B NGL Storage Hub Proponent). Hedrick, in his role as CEO of Appalachia Development Group, has led an effort to get a $10 billion NGL storage hub established in Appalachia–most likely in West Virginia. It’s a huge amount of money, will take cooperation from multiple states and will require multiple sources of funding to make it all happen. Hedrick has led the effort. Both of WV’s U.S. Senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat) have worked on behalf of this project and have had words of high praise for Hedrick and his efforts. And then, “out of the blue” last month comes an attack on Hedrick from the Charleston Gazette-Mail. We now know why–the attacks were instigated by WV Gov. Jim Justice. Which makes us scratch our head. What in the world is Justice thinking? Why would he attack the one person who is key to the state attracting a project (and investment) equivalent to two cracker plants? What is Justice smoking?…
    Read More “WV Gov. Justice Perpetrating an Injustice on NatGas Developer”

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    $83.7B Chinese Investment in WV Shale & Petchem Still Alive?

    Chinese yuan

    Is China’s $83.7 billion investment in West Virginia’s shale and petrochemical industries, announced last November, on hold or not? In early April, when the current “trade war” with China began to heat up, we said this with respect to the deal China signed to invest $83.7 billion in West Virginia shale and petrochemicals: “However, if a trade war does develop, it would be foolish to not think those investments (withholding them) will be used against us.” (see Will Trade War with China Affect $83.7B Investment in WV Shale?) In June at the Northeast U.S. Petrochemical Construction Conference in Pittsburgh, our fears (and prediction) were confirmed. Chinese officials were due to attend the event and announce the first round of investments in WV. However, Brian Anderson, director of the West Virginia University Energy Institute, said given the trade war now on with China, the officials elected to stay home instead. Anderson said, “The pending trade war has put this project in jeopardy” (see Trade War Puts $83.7 Billion Chinese Investment in WV on Hold). But what’s this? Anderson now appears to have changed his tune. He recently 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.” Hmmm. Which is it? Is the deal in jeopardy or moving forward?…
    Read More “$83.7B Chinese Investment in WV Shale & Petchem Still Alive?”

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    Where is Production Increasing (& Decreasing) in Marcellus/Utica?

    Natural gas production in the U.S. has rocketed skyward in just the past few weeks. According to the experts at RBN Energy, “the abruptness and sheer strength with which production has surged” has “taken the market by surprise.” Gas production rose in every region of the country, but it rocketed in one region in particular. Yep, in the Marcellus/Utica. When you look at how much our region was producing on June 7, and then again on June 28, the difference in just those three weeks is astonishing. Production of natgas soared and was 600 million cubic feet per day higher on June 28 than three weeks prior. Amazing! But production did not increase in every area of the Marcellus/Utica region. In one area, production decreased. Below you’ll find out where production went up, and where it went down in the M-U in June…
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    OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants

    Enough is enough. It’s time to name names and put an end to blocking new gas-fired electric plants planned in West Virginia. WV has a long, proud history as a coal producer. 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. 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. Drew Dorn, Director of ESC Harrison County Power and President of Energy Solutions Consortium (the company that has filed to build several new gas-fired plants in WV), points out Murray’s hypocrisy on the shale issue, by saying: “Murray Energy is trying to kill thousands of jobs on these projects. Murray Energy has made huge amounts of money off of natural gas in rights-of-way and other means, but when it comes to West Virginia natural gas making electricity, the company is trying to achieve through the courts what it could not through the marketplace.” The gloves are now off and it’s time to fight back–to get gas-fired plants built in WV. It’s time to “out” Bob Murray for the obstructionist he has become, and to expose him for the economic damage he’s causing…
    Read More “OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants”

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    Army Corps Engrs Reinstates MVP Permits for 4 WV River Crossings

    In May, the radical Sierra Club claimed a victory in temporarily stopping construction work of the Mountain Valley Pipeline (MVP) at four river crossings in West Virginia (see Army Corps Engineers Suspends MVP Permit for River Crossings). The Sierra Club and a mishmash of other radicalized green 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 was this: When constructing the pipeline across a river, the stated standard (according to the permit) 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 Corps said they had reviewed the standards and at that point (in May) rescinded the permit as it applies ONLY to those four rivers, NOT to any locations. The Corps has just reissued the permit in question, tweaked to allow MVP more time. That’s the new news and the good news. However, in June the Fourth District Court agreed with the Clubbers and for now, has stopped construction at all 591 stream crossings the pipeline traverses in WV (see Sierra Club Succeeds in Delaying MVP Project in WV via Court Order). So even though the underlying reason the case was brought in the first place, that construction will take longer at four crossings (out of 591) is now resolved, the court order is still in place preventing work at any of the crossings in WV…
    Read More “Army Corps Engrs Reinstates MVP Permits for 4 WV River Crossings”

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    EQT Confirms Sale of Huron Shale to Diversified for $575M

    MDN exclusively brought you the news, on June 19, that Diversified Gas & Oil had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see Diversified Gas & Oil Adds to Conventional Assets in KY, VA, WV). At that time, Diversified did not disclose who it had purchased the assets from. MDN provided a guess, but that guess proved wrong. Within an hour of posting about the sale, an MDN tipster confirmed for us the seller was EQT, which we subsequently updated, providing the MDN audience with the inside skinny. On Friday, June 29, EQT issued a press release (below) confirming that yes, it was they who had sold the acreage/assets, including nearly 12,000 wells with 200 million cubic feet per day of natural gas production, to Diversified. The deal also includes 2.5 million acres of leases and some 6,400 miles of gathering pipelines. What we didn’t know about the deal (until now) is that it includes 8 field offices and 250 employees. Here’s the EQT announcement with full details of the deal…
    Read More “EQT Confirms Sale of Huron Shale to Diversified for $575M”

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    Anti Group Sues WVU to Disclose Details of $83.7B China Deal

    Appalachian Mountain Advocates, a far-left, radical anti-drilling organization that some media outlets refer to as a simple “nonprofit law firm,” has filed a lawsuit against West Virginia University to force the university to hand over privileged and secret communications concerning the deal WV struck with China to invest $83.7 billion in the state, in the shale and petrochemical industries. As you may recall, that deal was announced last November (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). The particulars of the “deal” have never been announced–other than the top line number of $83.7 billion in investments. In fact, the “deal” was called a “memorandum of understanding” (MOU), which we said at the time: “[the deal] signed in China yesterday is a Memorandum Of Understanding (MOU). It’s a handshake–a gentleman’s agreement. And sometimes those agreements disappear. So this is far from a done deal.” In early December, following calls to disclose the deal, WV Gov. Jim Justice said the specifics are confidential (see WV Gov Justice Says China Investment Specifics are “Confidential”). So now, here comes a Big Green group trawling for trash–attempting to use (abuse) anything they can to make trouble for the shale industry. They hope if they can get their hot red hands on emails to and from the Red Chinese, they can fabricate a mountain out of a mole hill…
    Read More “Anti Group Sues WVU to Disclose Details of $83.7B China Deal”

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    WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub

    A recent article in the left-leaning Roll Call (official publication for Washington, D.C. swamp dwellers) attempts to paint the Trump Administration as out of step with the people he wants to help in West Virginia. The article says Trump’s strategy to prop up failing coal and nuclear plants is an attempt to boost coal mining jobs in WV, but is running counter to the state’s strategy of embracing the natural gas industry. Perhaps they have a point. However, what’s most interesting about the article is not the ginned up conflict between Trump and WV, but how the article spotlights WV’s two U.S. Senators–Republican Shelley Moore Capito and Democrat Joe Manchin–and their continuing role in trying to make a $10 billion NGL (mostly ethane) storage hub facility become a reality. The storage hub will be a jobs magnet with some estimates that it will create more than 100,000 new jobs in the state. The storage hub will also draw manufacturers looking to locate near ethane crackers, as a source for plastics used in their manufacturing process. Capito, in her comments, attempts to gloss over the rivalry between coal and natural gas, saying “all those rivalries have gone by the wayside.” Er, a, we beg to differ. But leaving aside the coal v. natgas focus of the article, we found two very interesting items. (1) The Dept. of Energy loan guarantee that would cover $1.9 billion of the estimated $10 billion cost to build it is a much bigger deal that we had realized. Why? Because any project that wins such a guarantee has gone through a rigorous review process. Winning such a guarantee is like conferring a triple A rating on the project for others who will consider investing in the project. It gives them confidence that the project has been thoroughly vetted and is low risk. (2) Manchin, in speaking with DOE Sec. Rick Perry, is using an interesting and novel argument to convince Perry the storage hub is a good thing to do. Manchin said when hurricanes hit the Gulf Coast, it knocks out petrochemical industry there, with a cascading effect across the U.S. Cracker plants (fed by the storage hub) in the northeast, are not susceptible to hurricanes. So Manchin’s pitch to Perry is this: Keep the Gulf Coast crackers cooking for products to export to other countries, but let’s build the storage hub (and crackers) in the northeast, so our country’s petchem industry isn’t adversely affected by a major hurricane…
    Read More “WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub”

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    Sierra Club Succeeds in Delaying MVP Project in WV via Court Order

    The insidious and well-funded Sierra Club has scored another temporary legal victory in stopping Mountain Valley Pipeline (MVP) construction throughout West Virginia. One month ago we reported that the Clubbers had claimed a temporary victory in stopping construction work of MVP at four river crossings in WV. At that time (in May), the Clubbers 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 (see Army Corps Engineers Suspends MVP Permit for River Crossings). The Clubbers’ tortured logic was this: When constructing the pipeline across a river, the stated government 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 Corps said they had reviewed the standards and have (for now) rescinded the permit as it applies ONLY to those four rivers, NOT to any other locations. However, the Fourth District Court ruled late last week that construction at all 591 stream crossings the pipeline traverses must now be immediately stopped until the court farts around and considers the full lawsuit brought by the radicalized Clubbers. Enough of this nonsense!…
    Read More “Sierra Club Succeeds in Delaying MVP Project in WV via Court Order”