FERC Rejects Blue Racer Midstream Plan to Change NGL Pipe Rates
We have to confess this story is a bit complex to understand. We will take a stab at making the complex understandable. Blue Racer Midstream has a subsidiary called Blue Racer NGL Pipelines LLC. The subsidiary operates the G-150 pipeline system, which provides batched propane and butane service. G-150 currently, located in West Virginia, connects a Natrium, WV processing plant to the TE Products Pipeline Co. (TEPPCO). The G-150 pipeline will also have a connection to the Mariner East 2 Pipeline when it goes into service, theoretically in June of this year. Currently the G-150 is flowing about 6,300 barrels per day of product through it–only 20% of its capacity. When the connection with ME2 is up and running, Blue Racer says it can handle 30,000 bbl/d through the G-150. However, Blue Racer itself signed up for most of the capacity (27,000 bbl/d). Blue Racer recently asked the Federal Energy Regulatory Commission (FERC) to allow it to have two different rate structures–a lower rate for “committed” shippers (Blue Racer itself with its 27,000 bbl/d) and a higher rate for uncommitted shippers. FERC rejected the request pointing out that existing shippers with contracts–namely Chesapeake Energy–would be left out in the cold in favor of Blue Racer moving its own volumes at lower prices. Yes, it’s complicated. Bottom line, Blue Racer can’t do what it wants and has to go back to the drawing board…
Read More “FERC Rejects Blue Racer Midstream Plan to Change NGL Pipe Rates”
Dominion Energy’s $6.5 billion Atlantic Coast Pipeline (running from West Virginia through Virginia and into North Carolina) is supposed to get built this year. ACP began to cut trees along the pipeline’s path in late January (see 
Rover Pipeline is in hot water again. This time it’s not Captain Craig “Ahab” Butler from the Ohio EPA, but the West Virginia Dept. of Environmental Protection. In a letter just released publicly (dated March 5), WVDEP slapped Rover with a “cease-and-desist” order, stopping all construction of Rover in the state, because of inspections in February that found 14 violations of water pollution regulations. 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. In addition to trouble in WV, Rover is also facing new issues in both Ohio and Pennsylvania. In February heavy rains in the region caused “slippage issues” where the pipeline is being installed. Rover filed a report with the Federal Energy Regulatory Commission (FERC) last week to say it has eight crews working to correct slippage issues at six locations along its 51-mile Burgettstown Lateral. Here’s the latest on WV shutting down Rover, and Rover’s work to fix slippage issues…
While everyone was focused on the passage of a co-tenancy bill in West Virginia (see 
West Virginia Gov. Jim Justice has done a complete 180 degree turn around with respect to signing a co-tenancy bill. As we previously reported, the co-tenancy bill was passed first by the House, and then the Senate (see 
Sometimes radicals who have “jumped the shark” and descended into complete lunacy go up a tree–literally. We’ve spotted this mental condition before (see 
On Saturday, the full West Virginia Senate voted on House Bill (HB) 4268–the “co-tenancy” bill–passing the measure by a vote of 23-11. This is tremendously good news–for both landowners and drillers. Although WV Gov. Jim Justice had previously threatened to veto the bill because he wanted it tied (like a millstone) to the neck of another bill (joint development), Justice backed off that position after getting a lot of blowback, from virtually everyone (see 
The Japanese recently found out more about the Marcellus/Utica and the region in the Mid-Ohio Valley called the “Shale Crescent.” In June 2016, MDN told you about an economic development group of business and government leaders from Ohio and West Virginia (the Mid-Ohio Valley) called Shale Crescent (see 
Well looky at this. West Virginia Gov. Jim Justice has pulled his head out of his…political fugue…and has reversed course on his opposition to the existing co-tenancy bill that’s near final passage. Justice previously threatened to veto the bill if it should hit his desk…
It seems that all new Marcellus/Utica pipelines run through West Virginia, at one point or another. That means there are (and will be) a lot of jobs available for those trained to work on them. The question is, how do you get trained? According to a recent article, there’s two potential pathways to training, and getting a job, in the midstream industry, in WV. One way is to get an associates (two-year) degree in petroleum or welding technology–like the degrees offered by West Virginia Northern Community College (WVNCC). The other way is to get training from a labor union, like the International Union of Operating Engineers…
Earlier this week MDN told you that West Virginia royalty owners are pushing Senate Bill (SB) 360 to fix the issue of post-production deductions drillers take from royalty checks (see 
West Virginia royalty owners (which sometimes means landowners, sometimes not) are pushing Senate Bill (SB) 360 to fix the issue of post-production deductions drillers take from royalty checks. A brief history: In December 2016, MDN reported on the huge WV Supreme Court decision against EQT that disallows EQT from deducting post-production expenses from royalty checks, even with signed contracts in place (see 
MDN has written a number of posts about an effort in West Virginia to correct an ongoing issue called co-tenancy (
Two days ago we reported that the West Virginia House of Delegates was due to vote on House Bill (HB) 4268, the “Co-tenancy Modernization and Majority Protection Act” (see