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    CNX Res. 2018 Plans: 65% Marcellus Drilling, 35% Utica Drilling

    CNX Resources, the gas drilling part of what used to be CONSOL Energy (but now is it’s own separate company), issued guidance yesterday for how much money they intend to spend on drilling in 2018. CNX will spend somewhere between $790-$880 million on drilling and midstream projects this year, with 65% of that total going for Marcellus projects, and 35% for Utica projects. That high level number breaks down as $515-$580 million for drilling and completions, and $275-$300 million for water, land and midstream infrastructure. CNX expects to drill 75 wells, 60 of them in the Marcellus, in PA and WV, and 15 in the Utica, in PA and OH. CNX plans to frack 51 wells this year, mostly in PA, and bring 59 wells online to production, again mostly in PA. The company also provided a big tease by saying it will spend $75-$100 million on running water pipelines “for two major stacked pay project areas that the company expects to be ready in the fourth quarter of 2019.” Hmmm. Wonder where they intend to expand in 2019? No CNX’s tease will stoke the rumor mill. As part of yesterday’s announcement, CNX also provided impressive data on a pair of dry Utica wells they recently drilled in Westmoreland County, PA…
    Read More “CNX Res. 2018 Plans: 65% Marcellus Drilling, 35% Utica Drilling”

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    Confirmed: LNG Coming to Boston on Jan 22 is Illegal Russian Gas

    We now have confirmation from the Russians themselves that the natural gas shipment on its way to Boston we alerted you to a few days ago is, indeed, Russian gas from the Yamal LNG plant, located in the Russian Arctic (see Russian LNG Coming to Boston to Alleviate NatGas Shortage?!). Even the ultra libs at the Boston Globe are admitting it’s Russian gas. We certainly hope American authorities are on the case and will stop the shipment because it is ILLEGAL. As we told you in our story posted Monday, the U.S. slapped the Yamal LNG plant with sanctions following Russia’s moves against the Ukraine. It’s illegal to receive gas produced from that plant. Shippers attempted to whitewash the gas by unloading it in the UK, and a few days later, reloading it on a different ship, the Gaselys, now heading at full speed for Boston. This is an outrage, for a number of reasons, but we’ll mention two: (1) The gas is illegal. (2) More pipelines from the Marcellus Shale region, about 300 miles from Boston, would alleviate the high prices and shortages New England currently experiences. Instead, the “leaders” of New England continue to block pipelines–preferring to get their gas illegally from America’s enemies…
    Read More “Confirmed: LNG Coming to Boston on Jan 22 is Illegal Russian Gas”

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    New Bill Would Force PA DEP to Work WITH the Marcellus Industry

    Pennsylvania State Rep. Brian Ellis (Republican from Butler County) introduced House Bill (HB) 1960 on Jan. 5. The bill, known as the “State Agency Regulatory Compliance Officer Act,” would create a new Regulatory Compliance Officer position in each state agency, including the Dept. of Environmental Protection (DEP). The new Compliance Officer would have the authority “to block an agency from imposing fines and penalties for violations and to rewrite the policies under which fines and penalties are imposed.” The aim of the bill is to force all PA state agencies (including the DEP) to work *with* the people and companies they regulate. It would create a different mindset–instead of “gotcha” enforcement of regulations, it’s aimed at making it easy to comply with regulations. The bill states this in its opening lines: “(1) It is the purpose of this act for agencies to work collaboratively with, instead of acting punitively towards, regulated communities. (2) Agencies should strive to make the regulations which the agencies administer and enforce as clear and easily navigable as possible for regulated communities. (3) In administering a regulation, an agency’s primary goal should be to ensure compliance rather than to exact punishment.” Those who love Big Government don’t like this bill. Will this bill go anywhere? Who knows! What the bill indicates to us is that at least some legislators (Republicans) in Harrisburg are listening and “get it.” What do they get? That PA has developed a reputation for burdensome regulations and if the state wants the Marcellus miracle to continue, and grow, things need to change at the DEP. A $83.7 billion investment by China in neighboring WV’s shale/petrochemical industries should be a bright, red slap across every PA legislator’s face. Wake up! If you don’t fix the DEP, quickly, you’ll lose PA’s Marcellus momentum to someone else…
    Read More “New Bill Would Force PA DEP to Work WITH the Marcellus Industry”

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    Work on Mariner East 2 Continues Following “Stop Work” Order

    Last week MDN reported the news that the Pennsylvania Dept. of Environmental Protection (DEP) has suspended all construction work on the Mariner East 2 Pipeline (ME2) project until further notice (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). However, all doesn’t necessarily mean all. A Chester County, PA anti’s celebration of the stop work order came crashing down when she noticed that work was still happening in an area located near her home. How can this be?! It seems the DEP’s statement that “all construction must stop” means “all construction which the DEP permits and authorizes must stop,” which can be further defined as “anything that disturbs the ground.” If the work involves digging, shoveling, etc., it’s stopped. But there’s still plenty of work that can continue–work that is not permitted by the DEP, including welding pipes together. That’s what’s happening at the site in Chester County–and local antis desperate to stop ME2 are mad and discouraged that Sunoco Logistics Partners continues to keep at least some of their workers busy while the company works to get full construction activity restored…
    Read More “Work on Mariner East 2 Continues Following “Stop Work” Order”

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    Jessup Town Board Continues Effort to Stop Gas-Fired Elec Plant

    We don’t know how many times we have to keep ringing the bell–this is a five-alarm situation! Wake up! A group of Democrats elected to the Jessup, PA Borough Council (Scranton suburb) are actively trying to block the completion of the state’s largest natural gas-fired electric generating plant–the first phase of which will be ready to go online in a little over a month. A bunch of ninny nanny antis didn’t like that they couldn’t stop the project, so they used money and help from Big Green groups last November to launch successful campaigns to defeat incumbent Council members who voted to authorize the Lackawanna Energy Center to be built by Invenergy (see Scranton Antis Get Political Revenge for Gas-Fired Power Plant). A new majority of anti-power plant radicals took office last week and wasted no time in attempting to slow (or stop) the project (see New Town Board Tries to Stop Nearly-Done Gas-Fired Plant in Jessup). Yesterday, Jessup Council members voted unanimously to hire the same attorney used by Big Green group Delaware Riverkeeper, Jordan Yeager, to “investigate” a request by Invenergy to flush 56,000 gallons of heated water (used to cool the plant) per day down the municipal sewer system. Council voted, unanimously, to pay Yeager and another attorney from the same Big Green law firm $225 per hour for their “expertise” in reviewing Invenergy’s request. No doubt the new council members are hoping Yeager can figure out a way to deny Invenergy’s request and perhaps kill the plant–or at the very least delay the project as long as possible. That seems to be the strategy here. Why else would Jessup Council hire a Big Green lawyer like Yeager? This is NOT a good faith effort to work with Invenergy, as some Council members pretend. It is a bad faith effort to screw Invenergy and stop the plant…
    Read More “Jessup Town Board Continues Effort to Stop Gas-Fired Elec Plant”

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    Hand Wringing in PA Following FERC Rejection of Coal/Nuke Subsidies

    Pennsylvania legislators (Democrats and RINOs) who were banking on the federal government to “fix” the problem of the free market are panicking after the Federal Energy Regulatory Commission rejected DOE Sec. Rick Perry’s so-called Grid Resiliency Pricing Rule that would tip the scales in favor coal and nuclear energy, keeping unprofitable electric generators in business longer (see FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid). The PA legislators are panicking because nuke and coal plants in the state may now shut down much sooner than expected. To be fair, those plants employ a number of good people–and we hate to see anyone lose a job. But the fact is new gas-fired plants are taking their place, and those new gas plants generate good jobs too. The legislators were hoping the feds would do something, and since the feds aren’t doing anything, that means the problem now bounces back to the individual states, including PA. There’s a lot of hand wringing around Harrisburg. To which we say, relax! Marcellus Shale gas has got your back. Most of the noise about this issue comes from those who own the dinosaur/dying facilities. They don’t really give a flip about “grid reliability.” They only care about their own businesses and seek crony capitalism to prop up the bottom line. FERC made the right decision. PA legislators need to get a grip. This is not the end of the world…
    Read More “Hand Wringing in PA Following FERC Rejection of Coal/Nuke Subsidies”

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    During Drilling “Downturn” PA Local Govts Still Reap Econ Benefits

    One of the loudest, most persistent arguments by Democrats (and RINOs) in Pennsylvania in favor of a severance tax is that the existing impact fee (actually, better called an impact “tax”) have decreased over time because of a decrease in the number of new wells drilled due to the downturn in the market. There are two gigantic problems with their argument: (1) the impact tax has turned around, and is rising again (see IFO Predicts PA Impact Fees for 2017 Will Soar, Near Record High); and (2) a new study by environmental think tank Resources for the Future finds that even during the “downturn years,” the most heavily drilled shale states (including PA) saw an increase in revenue to local governments. Although impact tax revenue may fluctuate up and down, on average townships in PA now have more revenue because of shale than they did prior to the Marcellus revolution. Although the oil and gas industry has always been a “boom and bust” industry, and will remain so, it now appears the highs will not be as high and the lows not as low as they once were. Below is a full copy of “Local Fiscal Effects of a Drilling Downturn: Local Government Impacts of Decreased Oil and Gas Activity in Five US Shale Regions”…
    Read More “During Drilling “Downturn” PA Local Govts Still Reap Econ Benefits”

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    Our Favorite Govt Agency, EIA, Gets New Leader: Dr. Linda Capuano

    Dr. Linda Capuano

    Our favorite government agency, the U.S. Energy Information Administration (EIA), now has a new Administrator. President Trump has appointed Dr. Linda Capuano to the position. She began her new job yesterday. Capuano was, until her new job at EIA, a fellow in energy technology at the Baker Institute Center for Energy Studies. She was also on the faculty of Rice University’s Jones Graduate School of Business, where she taught operations strategy for the executive MBA program. EIA is about as non-political of an agency as you can find in Washington, DC. We’re sure she will keep it that way. EIA needs to be apolitical because they publish critical information on energy–both its production and use. There’s no room in cold, hard data for political gamesmanship. We religiously follow the EIA’s monthly Drilling Productivity Report (see the most recent edition here: EIA Dec ’17 Drilling Report: New Year to Begin in Record Territory). Please join us in welcoming Dr. Capuano to this very important position…
    Read More “Our Favorite Govt Agency, EIA, Gets New Leader: Dr. Linda Capuano”

  • Marcellus & Utica Shale Story Links: Wed, Jan 10, 2018

    The “best of the rest”–stories that caught MDN’s eye over the break that you may be interested in reading. In today’s lineup: Interview with CRSD’s Susan LeGros; NY Gov. Cuomo’s latest energy proposals try to cut down natgas; rig count stands at 21 in OH Utica; Arctic blast send natgas prices through the roof in North Carolina; California municipalities may have committed securities fraud in targeting Exxon; corporate raider Carl Ichan still hassling SandRidge Energy; utilities cut rates, credit Trump tax reforms; Agility Gas gets patent for ethylene shipping on LNG carriers; Germany scraps 2020 climate change targets because they won’t meet them; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Jan 10, 2018”

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    FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid

    On September 29, U.S. Energy Secretary Rick Perry sent a letter to the Federal Energy Regulatory Commission (FERC) directing the agency to complete action on a “Grid Resiliency Pricing Rule”–ostensibly within 60 days. The proposed rule Perry proffered, sometimes referred to as the Notice of Proposed Rulemaking (NOPR), would put in place regulations that favor electric generating plants powered by coal and nuclear. That is, it would allow unprofitable ventures to pass along new costs, making them profitable–in the name of protecting the electric grid. The theory Perry (and by extension President Trump) subscribe to is that if the free market drives out coal and nuke plants, the electric grid would be “vulnerable” to far fewer sources to power it. If coal and nukes are all but gone, and all of sudden there’s a natural gas shortage, or prices spike for natural gas, it would endanger the electric supply in this country. On one side of the argument are those who believe the free market sometimes needs a helping hand (via regulation), and on the other those who believe the free market will sort it all out and we are not vulnerable. The incoming/new chairman of FERC, Kevin McIntyre, asked for an extension so he and another new FERC member could take a little time to do a proper review (see Kevin McIntyre Sworn in as 5th FERC Commissioner, New Chairman). The review is done and yesterday all five FERC commissioners voted unanimously to reject Perry’s Grid Resiliency Pricing Rule. However, as a consolation prize, FERC launched an effort to formally canvas electric grid operators, compelling them to respond with details of their plans for grid resiliency. It’s a small bone to coal and nuclear, but a bone nonetheless…
    Read More “FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid”

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    DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation

    In September, MDN told you that the obsequious members of the Delaware River Basin Commission (DRBC) had slavishly obeyed their radical environmental masters by voting to move forward with a permanent ban on fracking in the Delaware River Basin (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The final ban language/regulation was dropped like a bomb by DRBC staff on Nov. 30 (see DRBC Drops Permanent Frack Ban Bomb – Public Hearings in January). In dropping their bomb, the DRBC said (with no proof) that fracking “poses significant, immediate and long-term risks” to the waters in the basin. Then they declared, by fiat, that “High volume hydraulic fracturing in hydrocarbon bearing rock formations is prohibited within the Delaware River Basin.” However, they also said (in the fine print) that water from the Delaware River Basin can be used by frackers in other locations–which sent antis like THE Delaware Riverkeeper into apoplectic shock. The DRBC announced they would allow public comment, via written communication, through Feb. 28. They also planned four public hearings (i.e. freak shows) to allow antis the opportunity to parade before the microphones and make jerks of themselves (we’ve seen it many times). Antis said three months wasn’t enough time to crank up the form letter machine nor is it enough freak show opportunities (see Enviros Tell DRBC Not Enough Freak Shows Scheduled on Frack Ban). True to form, the DRBC has, once again, caved to the only constituency they listen to: anti-drillers. Yesterday the DRBC announced they will extend the public comment period from Feb. 28 to Mar. 30, and they will add another two freak show public hearings to the roster…
    Read More “DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation”

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    Williams Marcellus Buildout Leads to Record Transco Pipe Volumes

    Transco Pipeline Map – click for larger version

    Williams’ Transcontinental Gas Pipe Line (Transco) is the largest natural gas pipeline (by volume pumped) in the United States. Transco and its various branches stretch from the Texas Gulf Coast all the way to New York City. As MDN previously reported, Transco completed five important expansion projects in 2017: Gulf Trace, Hillabee Phase 1, Dalton, New York Bay, and Virginia Southside II (see Transco Pipeline Update: 5th Expansion Done, More Coming 2018). Because of those expansions, Transco flowed a record-breaking, all-time high of 15.58 million dekatherms (15.58 billion cubic feet, or Bcf) of natural gas in a single day–on Jan. 5, 2018. That’s approximately 20% of all the natural gas consumed in the entire country on that day. Amazing! Two more important expansion projects that are part of the Transco system are due to complete construction and go online in 2018: Atlantic Sunrise Pipeline and Garden State Phase II. Atlantic Sunrise will feed 1.7 Bcf/day of Marcellus Shale gas from northeastern PA into the Transco system, moving it south. As an interesting aside, Cabot Oil & Gas will provide 1 Bcf/d out of the 1.7 Bcf/d on Atlantic Sunrise when it’s completed (see FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity). Here’s the Williams statement about their recent Transco record-breaking day…
    Read More “Williams Marcellus Buildout Leads to Record Transco Pipe Volumes”

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    New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy

    In February 2015, Philadelphia-based economic consulting firm Econsult Solutions released a study looking the potential economic impact of the Mariner East 1 & 2 projects, concluding the two project together would result in $4.2 billion coming to Pennsylvania (see New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA). However, projects like Mariner East change over time. Econsult revisited and revamped their original study to reflect those changes. Know what they found? ME1 & ME2 together will result in over $9 billion of economic impact in PA! How could it be that much? Just consider, the two projects together will have created 57,000 direct, indirect and induced jobs between 2014 and 2019 (9,500 jobs annually) with earnings of $2.7 billion impacting multiple industries. And that’s just the jobs piece of the puzzle! Although total economic impact will exceed $9 billion, the pipeline will continue to generate revenue for PA state coffers for years into the future, via taxes and by feeding the petrochemical industry in the Philadelphia area. It’s not $9B total–it’s $9B initially. Sadly, the PA Dept. of Environmental Protection last week halted all work on Mariner East 2, delaying the economic benefits of the project in PA (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). Let’s hope ME2 resumes work quickly. In the meantime, we have a copy of Econsult’s new report below, along with comments by antis who ignore the hard science in front of their faces that the Mariner pipelines are a bonanza for PA…
    Read More “New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy”

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    Minuteman Seeks Justice Against Kathleen Kane & PA AG’s Office

    One of the companies in the Marcellus industry targeted for extinction by Pennsylvania’s former Attorney General, Kathleen Kane, was Minuteman Environmental Services (see PA’s Anti-Drilling AG Charges Minuteman with Enviro Crimes). Minuteman was a Pennsylvania company serving the shale industry with several different businesses. In 2014, Kane orchestrated what can only be called a terror attack on Minuteman and its owner Brian Bolus and his family (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Kane’s vendetta against Minuteman was one of the most egregious examples of her abuse of power while she was AG. Kane’s attack on this small business literally drove it out of existence–they finally went bankrupt. One of the charges Kane used against the owner of the business, Brian Bolus, is that he illegally added his mom and dad to the health insurance plan for the company, even though they were not employees. Fantastically, Kane went after mom and dad, charging them with health care fraud! That charge, along with other charges, were dropped in 2016 (see Former PA AG Kathleen Kane’s Vendetta Against Marcellus Co Over). In fact, out of the original 83 charges (56 charges being felonies), 81 of the charges have been dropped. The final two charges–misdemeanors (barely above a traffic ticket in the pecking order), go to trial this month and will (hopefully) also be dropped. It has taken four, long, years for Bolus and Minuteman to be exonerated legally. During that time, Kane herself was tried and convicted for committing perjury–a felony–and removed from office (unrelated to the Marcellus industry). Kane and the AG’s office caused extreme harm to Brian Bolus and his family–reputationally, and economically. Nothing can ever make up for the years and loss of reputation and forcing a company to go bankrupt, throwing hundreds of people out of jobs. However, there is *something* can be done. Bolus has filed a lawsuit (copy below) against Kane and the AG’s office and some of the people in the AG’s office that maliciously targeted him and his company. He’s demanding a jury trial–to help right the extreme wrong that’s been done…
    Read More “Minuteman Seeks Justice Against Kathleen Kane & PA AG’s Office”

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    Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC

    Last week we noticed the large merger/acquisition by Dominion Energy in buying South Carolina-based SCANA Corporation. We didn’t think much of it at the time. SCANA is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. In other words, the local electric and gas company for much of South Carolina. Dominion is a big company with many operations–they are a pipeline company, an electric generating company, and a utility company (like SCANA). The merger makes sense–Dominion gets to grow and add more customers to its utility business. We didn’t think there was a tie-in with the Marcellus/Utica region, which is why we haven’t (until now) brought you the news about Dominion’s $7.9 billion all-stock purchase of SCANA. However, there is a big potential connection to the Marcellus/Utica. You may recall we brought you news in early December that Dominion and their partner in the Atlantic Coast Pipeline (ACP) project Duke Energy are considering expanding the original ACP to more locations in North Carolina, AND expanding the pipeline into South Carolina (see Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC). Dominion is now openly saying that the SCANA purchase makes it more likely they will push to expand ACP into SC–meaning even more Marcellus/Utica gas could be flowing to Dixie…
    Read More “Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC”

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    NY Moves Forward with Fracked Gas Microgrid in Middle of Albany

    Last May, New York Gov. Andrew Cuomo announced plans to construct a new “state-of-the-art, locally-sourced mini-power grid” that will connect to the statewide electric grid but will also be able to operate independently, to power the Empire State Plaza in Albany–a complex of buildings in downtown Albany housing much of New York State government (see NY Gov Cuomo Building New Fracked Gas Elec Plant to Power Albany!). The energy-efficient microgrid, which will be powered by fracked natural gas from Pennsylvania, will supply 90% of the power for the 98-acre downtown Albany complex, and is expected to save the Plaza more than $2.7 million in annual energy costs. The project will also remove more than 25,600 tons of greenhouse gases from the atmosphere each year – the equivalent of taking more than 4,900 cars off the road – supporting New York’s goal to reduce emissions by 40 percent by 2030 from 1990 levels. In an emergency, it can power a shelter for Albany residents. As we pointed out at that time, Cuomo building a fracked-gas-powered microgrid is just about the ultimate in hypocrisy. He blocks fracking in NY, and he even blocks the pipelines needed to flow gas from PA into NY. But hypocrisy doesn’t bother Lord Cuomo. The project is on track to select a contractor by the end of March, and begin construction by the end of this year. The plan is to have the new natgas-fired microgrid up and running by the end of 2019…
    Read More “NY Moves Forward with Fracked Gas Microgrid in Middle of Albany”