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    Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?

    The news that the Pennsylvania Dept. of Environmental Protection (DEP) has suspended all construction work on the Mariner East 2 Pipeline project until further notice continues to reverberate (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). MDN has taken some heat for our implication that the main reason for the shutdown is pressure from radical Big Green groups. While we maintain our view is not incorrect, we also don’t want to leave the impression that there aren’t problems that need to be addressed with ME2 construction. There are. And the DEP is right to address them. What we DO take issue with is a complete shutdown of ALL construction. If the underground horizontal directional drilling (HDD) work is the primary issue, shut that down–but not all construction, including trench work. At any rate, we spotted a story about a landowner in Cumberland County who says his private water well was fouled when ME2 construction began–and it’s still not right. Below is his story as an example of what the DEP *should* be paying attention to…
    Read More “Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?”

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    Propane Prices in the Northeast & ME2 Pipeline

    A lot of the talk and chatter this week has been about the spike in the price of natural gas (see today’s lead story, NatGas Trading in NYC Hits $175/Mcf – Highest Ever Recorded!). The other hot topic of the week is the decision by the Pennsylvania Dept. of Environmental Protection (DEP) to temporarily suspend all construction work on the Mariner East 2 (ME2) Pipeline. What antis in the Philadelphia area don’t realize is that ME2 is vital to their own region and their own pocketbooks. Yesterday we brought you one take on why Philly residents are missing the boat in opposing ME2 (see It’s Time We Stop Missing the Point About the Mariner East Pipes). In that guest post, MDN friend Garland Thompson makes the salient point that jobs and the Philly economy are tied to petrochemicals and the NGLs that will flow through the Mariner East pipelines. Today we bring you another article about why ME2 is so vital to the Philly area: the cost of propane. One of the primary NGLs that will flow through ME2 is propane, used in a variety of applications, but particularly used in places where there are not natural gas pipelines to deliver gas to homes (like the various suburbs around Philly, the ones opposing ME2). Propane prices are going up because (a) much of the propane produced by Marcellus/Utica drillers goes by railcars to Kansas, where it catches a ride on a pipeline to the Gulf Coast, and (b) the propane that does come to the Philly area also comes via rail cars, at a much higher price than if it were shipped via pipeline. Add to that other countries want our propane and are bidding the price up–and you have a prescription for spiking propane prices around Philly. The article below delves into the business of propane, explaining terms you may have heard but don’t know what they mean–like “contango” and “backwardation.” Buckle up–here’s a deep dive into the economics of propane, and why Philadelphia desperately needs the ME2 pipeline–without delay…
    Read More “Propane Prices in the Northeast & ME2 Pipeline”

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    CNX’s Pipelines to be Used for “Partners” – Not Just CNX Res.

    Yesterday we brought you the news that CONE Midstream has been renamed to CNX Midstream, and that CNX Resources is now the sole owner of the entire gathering pipeline system (see CONE Midstream Gets a New Name: CNX Midstream Partners). CONE was originally a joint venture between CONSOL Energy (the “CO” part of the name) and Noble Energy (the “NE” part of the name). CONSOL and Noble had a joint venture on hundreds of thousands of Marcellus/Utica Shale acres. Some of the wells drilled were “owned” by CONSOL, some by Noble. CONSOL and Noble decided to divide up the JV, each taking a piece, in late 2016 (see Divorce: CONSOL & Noble Dissolve M-U Joint Venture). Then in May 2017, Noble up and sold all of their Marcellus leases and wells, to HG Energy (see Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?). Not long after, Noble announced they also want to sell their share of CONE. Long story short, CNX (formerly CONSOL) bought Noble’s CONE share, and now owns it lock, stock and barrel. Does that mean CNX will no longer flow gas from HG Energy (formerly Noble) wells served by their 100%-owned pipelines? Not on your life! CNX will continue to service HG Energy’s wells, and may even run gathering lines to other competitors’ wells (i.e. “partners”) in the areas where CNX Midstream operates. So said CNX CEO Nick DeIuliis on a conference call yesterday with analysts. DeIuliis is jazzed that his company now owns 100% of the pipeline gathering system because it will allow them to “move quickly” to seize opportunities…
    Read More “CNX’s Pipelines to be Used for “Partners” – Not Just CNX Res.”

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    As MVP Gears Up for Feb 1 Construction, WV Landowners Try to Block

    A relatively small number of landowners in West Virginia is using a novel legal argument to try and stop Mountain Valley Pipeline (MVP) from beginning construction. MVP is a $3.5 billion, 303-mile natural gas pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The Federal Energy Regulatory Commission (FERC) issued a final approval for the project in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). In order to keep the project on track for completion by the end of 2018, they need to begin tree clearing no later than Feb. 1st. Problem is, there are landowners in WV (and VA) who won’t negotiate with MVP on leases–so MVP has sued them using eminent domain. Here’s what typically happens in an eminent domain case (knowledge we gained at a session at last year’s Shale Insight event): Since this is a federally regulated project, MVP has the right (under FERC authority) to use eminent domain to “condemn” properties where the landowners won’t play ball. The cases are typically filed in U.S. District Court–in this case for the Southern District of West Virginia. MVP filed that paperwork back in October. What usually happens next is that the judge/court will grant an order allowing the pipeline company to enter the property and do the work–but the details about how much money the landowner gets is not decided, sometimes for a year or more. That’s a separate issue. First the company is allowed in and does the work, later on the court will decide how much money to award the landowner for the work. However, the WV landowners filed a response and motion for partial summary judgment in late December that makes the argument that how much each landowner gets should come first, before MVP is allowed on their property. Frankly, it just doesn’t work that way. Question is, what will the justices do in this case?…
    Read More “As MVP Gears Up for Feb 1 Construction, WV Landowners Try to Block”

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    SRBC Facts Expose DRBC Lies with Respect to Fracking

    The difference between the Susquehanna River Basin Commission (SRBC) and Delaware River Basin Commission (DRBC) with respect to the issue of shale drilling is striking. The SRBC wisely knows it is not charged with regulating oil and gas drilling within their borders. They are charged with (and do a great job of) managing the water resources within the basin. On the other hand, the DRBC is populated with ultra-liberals who disregard Constitutional law and have taken it on themselves to simply ban shale drilling within their basin. A court case is now playing out that will slap the DRBC back into its proper role. The DRBC claims the water that flows through the basin provides drinking water for 15 million people, including New York City. The SRBC provides drinking water for 4.1 million people. If fracking really does “harm” the environment–specifically water resources–you would think with thousands of Marcellus wells drilled in the SRBC area something would have shown up long ago. But it has not–which exposes the lies being used to try and stop fracking in the DRBC area. In December Penn State University’s Marcellus Center for Outreach and Research entered the lion’s den–by giving a presentation and answering questions at a meeting of the Upper Delaware Council, held in Narrowsburg, NY. David Yoxtheimer from MCOR compared the SRBC to the DRBC and used science to debunk many of the wild claims heard in DRBC’s efforts to ban fracking. While Yoxtheimer’s presentation was by-the-book and based on science (he’s not a combative guy), there’s no missing the fact that he obliterated the anti-fracking arguments put forth by the DRBC…
    Read More “SRBC Facts Expose DRBC Lies with Respect to Fracking”

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    FERC’s Vital Role as Referee in Building NatGas Pipelines

    The current cold snap and resulting high prices for natural gas in New York City and Boston are happening for one simple reason: lack of pipelines. In particular, as we pointed out yesterday, much of the blame can be laid at the feet of New York’s corrupt governor, Andrew Cuomo (see New England Can “Thank” NY Gov. Cuomo for Sky High NatGas Prices). Cuomo, using his lackeys at the state Dept. of Environmental Conservation, has blocked numerous important pipeline projects from entering NY from PA. Those pipelines can/would provide more natural gas for New Yorkers, AND provide more gas to other states, the New England states. Instead of paying $10-$15/thousand cubic feet (Mcf) for natural gas, New York and Boston are paying up to $175/Mcf and $105/Mcf respectively. It’s insane! The Federal Energy Regulatory Commission (FERC) was created to oversee authorization and construction of pipelines that cross state lines–specifically to prevent a single state (like NY) from blocking a pipeline that will benefit other states (like the New England states). We often read the flat-out lie that FERC is a rubber stamp for pipeline companies because in all of its history it’s only reject two pipeline projects. That’s just not true. Pipeline projects are submitted and FERC will tell the builder “make this change or that change, or you don’t get a permit”–and the changes get made. Or the pipeline company simply withdraws the project from consideration. A proper understanding of FERC and its role is crucial to the ongoing debate about whether states like NY can/should be allowed to destroy opportunities for other states. Writing in the Houston Chronicle, the president of the Iroquois Pipeline, Jeff Bruner, gives us a proper understanding of FERC and its vital role…
    Read More “FERC’s Vital Role as Referee in Building NatGas Pipelines”

  • Marcellus & Utica Shale Story Links: Fri, Jan 5, 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: Natgas prices falling for some Ohioans despite arctic weather; Appalachian E&Ps work hard to fend off cold, keep the gas flowing; natgas hits record highs as cold bomb targets northeast; 8 more Utica permits in Ohio; New Mexico becomes nation’s #3 oil producer thx to shale; U.S. is on the cusp of becoming an “energy superpower”; bitcoins to BTUs, cryptocurrency’s impact on natgas; China set to top Japan as world’s biggest natgas importer; and more!
    Read More “Marcellus & Utica Shale Story Links: Fri, Jan 5, 2018”

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    PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline

    We suppose it was bound to happen sooner or later. The Pennsylvania Dept. of Environmental Protection (DEP) has caved to intense pressure from a cabal of Big Green groups and has told Sunoco Logistics Partners to suspend all work on the $2.5 billion Mariner East 2 (ME2) NGL pipline–from one side of the state to the other. Just yesterday MDN told you about the mounting pressure on the DEP to halt ME2 work, particularly work on underground horizontal directional drilling (see Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat). The shrill voices of Democrat Gov. Tom Wolf’s left flank were so shrill he couldn’t ignore them any longer, hence this action. The DEP in its order said construction will be halted, “until Sunoco can demonstrate that the permit conditions can and will be followed.” So there’s no particular time frame for when Sunoco can resume work–it will be up to the arbitrary gut feeling of the DEP. However, DEP does offer some criteria for when construction may be able to resume. Work can resume IF Sunoco satisfies the terms outlined in DEP’s order, including, but not limited to: (1) Address all impacts to private water wells in Silver Spring Township, Cumberland County; (2) Identify all in-progress or upcoming construction activities and detail the specific Chapter 102 and Chapter 105 permit under which the activity is authorized; (3) Submit a detailed Operations Plan outlining additional measures and controls to minimize inadvertent returns. In essence, the DEP is saying Sunoco has willfully violated the permits (and previous settlement) in constructing ME2, and they (DEP) have had enough. The DEP’s action immediately throws thousands of pipeline workers out of jobs across the state–thank you Tom Wolf and DEP. Big Green groups, including the odious Clean Air Council of Philadelphia, pounced on the DEP announcement, saying the agency should not just suspend construction, but CANCEL it. That has been their aim all along. These pressure groups want to stop the ME2 project cold. End it. Kill it. Finish it off. The DEP isn’t ready to grant that particular wish–yet. However, the suspension is certainly not good news for the project nor for thousand of families who will now have to make do with unemployment checks…
    Read More “PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline”

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    It’s Time We Stop Missing the Point About the Mariner East Pipes

    Yesterday the Pennsylvania Dept. of Environmental Protection suspended all work on the Mariner East 2 NGL Pipeline project (see today’s lead story, PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). The project has been vigorously opposed by antis in the greater Philadelphia area from the beginning. Their opposition stems from a deeper philosophical preference to end the use of fossil fuels. Last September, MDN editor Jim Willis had the pleasure of meeting and talking with Garland Thompson at the Shale Insight event in Pittsburgh. Garland, who lives in Philly, has written for the Career Communications Group of publications, including US Black Engineer & Information Technology, Hispanic Engineer & IT, and their siblings Woman of Color and Science Spectrum, for many years. He’s covered the shale revolution for those publications since 2008–before MDN began writing about it! Jim had an interesting conversation with Garland, about the need to educate folks, particularly the folks in the greater Philly area, about the benefits of pipelines. Springboarding on yesterday’s news, Garland has written a great opinion piece pointing out that opposition to the Mariner East pipelines (plural) is misguided and shortsighted. Garland builds a case for why everyone in the Philly region should want to see these important projects get built…
    Read More “It’s Time We Stop Missing the Point About the Mariner East Pipes”

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    Appalachian NGL Storage Hub Gets Serious with DOE Loan Guarantee

    Just yesterday MDN told you that Mountaineer NGL Storage wants to be THE main ethane/NGL storage hub for the Marcellus/Utica region (see Mountaineer NGL Wants to be THE Appalachian Storage Hub). There has long been talk of a major, $10 billion regional NGL storage hub. But until know it’s been just that–talk. A major hub is now much more of a possibility. Last June West Virginia’s U.S. Senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat), introduced Senate Bill 1337–the “Capitalizing American Storage Potential (CASP) Act”–a bill that would make a regional ethane storage hub (hopefully built in WV) eligible for the Department of Energy’s Title XVII loan guarantee program (see WV Sens. Capito & Manchin Introduce 2 More Ethane Storage Hub Bills). The bill didn’t go anywhere, but the intention of the bill certainly did. Yesterday it was announced that the DOE has invited those promoting the regional ethane storage hub to submit “Part II” of the application for a Title XVII loan guarantee of $1.9 billion. There’s a lot to unpack in the announcement below. First, the regional storage hub has an official name: The Appalachia Storage & Trading Hub (first time we’d read of it). Second, the project has an official backer: the Appalachia Development Group, LLC (or “ADG”). Third, ADG previously filed Part I of the application with the DOE, back in September. Fourth, since the DOE has invited ADG to supply Part II of the application, that implies Part I from September was/is approved. Fifth, $1.9 billion is far short of the eventual cost bandied about of $10 billion–but it can certainly get this project off the ground and running. And sixth, this is NOT a loan from the government, it is a guarantee. Someone else would make the loan, but the full faith and credit of the United States would back it up, in case of default. A Title XVII loan guarantee makes it much easier to find a loan…
    Read More “Appalachian NGL Storage Hub Gets Serious with DOE Loan Guarantee”

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    DOE Spending $8M on Research to Evaluate Nora Field in SW VA

    Yesterday the U.S. Department of Energy (DOE) announced the selection of six projects to receive approximately $30 million in federal funding for cost-shared research and development in unconventional oil and natural gas recovery. One of the six projects is for the Appalachian region (Marcellus/Utica area). DOE is chipping in $8 million and another $3.1 million is coming from other sources for a total of $11.1 million to study “the resource potential for multi-play production of emerging unconventional reservoirs in the Nora Gas Field of southwest Virginia.” That’s the first we’ve heard of the Nora Gas Field. Turns out the Nora field, located mainly in Dickenson County, VA, has a lot of conventional and coalbed methane gas wells. The research project will determine if the gas locked away in the Nora might be accessed with horizontal fracking. The project will also look at “novel completion strategies for lateral wells in the unconventional Lower Huron Shale” and the “resource potential of the Cambrian Rogersville Shale.” In other words, this research may well lead to active shale drilling in the Old Dominion State…
    Read More “DOE Spending $8M on Research to Evaluate Nora Field in SW VA”

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    CONE Midstream Gets a New Name: CNX Midstream Partners

    CONE Midstream is, or rather was, a pipeline joint venture between CONSOL Energy and Noble Energy (“CO” from CONSOL and “NE” from Noble Energy), formed in the summer of 2014 to service wells drilled as part of CONSOL & Noble’s drilling joint venture (see CONSOL & Noble Energy Form New Marcellus Midstream Company). Following Noble’s exit from the Marcellus last year, they began to shop their 50% share of CONE, and thought they had found a buyer in Quantum Energy Partners–for $765 million. However, as we reported in December, that deal hit a snag (see Noble’s 50% CONE Midstream Sale in Trouble – Shopping Deal to CNX). Not long after, CNX Resources (formerly CONSOL Energy) issued a press release to announce they had cut a deal to buy Noble’s 50% CONE share–for $305 million, which is 60% less than of the deal price Noble previously worked out with Quantum (see CNX to Buy Noble’s 50% Share of CONE Midstream for $305M). Two bits of news to share with you regarding the CONE deal: (1) the deal is now done, and (2) CNX Resources has renamed CONE Midstream to be CNX Midstream–which should not be a surprise since the NE part of CONE is now gone, and since the CO part changed its name. Here’s the news…
    Read More “CONE Midstream Gets a New Name: CNX Midstream Partners”

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    Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA

    In November MDN brought you details about a 100% FREE training program for those interested in a career building pipelines in the Marcellus/Utica region (see 4-Wk FREE Training Program Helps Unemployed Get M-U Pipeline Jobs). The first batch of students to successfully complete the training (classes held each Wednesday), graduate today! Following graduation is a job fair with potential employers who are ready, willing and eager to hire those new graduates. A next section of the 4-week program begins next Wednesday at Indiana University of Pennsylvania’s campus in the Northpointe Technology Center (Armstrong County, PA). Believe it or not (we don’t know how this can be true), there’s still a few open spots. Each section is limited to 20 students. If you are interested and live somewhere within driving distance of Armstrong County, what are you waiting for? We have the details of how to enroll for FREE in this training course–a course worth $3,500…
    Read More “Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA”

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    FERC Launches Review for for Transco “Gateway Expansion Project”

    In November Williams filed an application with the Federal Energy Regulatory Commission (FERC) to upgrade certain facilities in New Jersey along Williams’ mighty Transco Pipeline (see Williams Files FERC Appl for Transco “Gateway Expansion Project”). The $85 million project, called the Transco “Gateway Expansion Project,” will flow an extra 65,000 dekatherms per day (or 65 million cubic feet) of natural gas to a couple of utility companies that have already signed on the dotted line as customers. The upgrades include a new compressor unit at Transco’s existing Compressor Station 303 in Essex County, NJ, a new valve and electric transformer also in Essex County, and equipment upgrades at a metering station in Passaic County, NJ. Both PSEG Power and UGI Energy Services have signed up to receive the extra gas–to be distributed to their customers in the region. On Tuesday FERC announced it has launched an environmental review of the project–the first step in approving such a project. FERC is accepting comments on the project through February 2nd…
    Read More “FERC Launches Review for for Transco “Gateway Expansion Project””

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    Dominion, MVP File to Dismiss VA-WV Lawsuit Against Pipe Projects

    In September a group of 57 gentry landowners in Virginia and West Virginia, backed by an out-of-state Big Green group, sued the Federal Energy Regulatory Commission (FERC) in an attempt to gut the 80-year old Natural Gas Act that gives FERC the right to grant eminent domain for pipeline projects (see VA, WV Landowners Sue FERC re Pipelines, Seek to Gut Natural Gas Act). Specifically, the colluding landowners oppose Dominion’s $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina, and EQT’s $3.5 billion Mountain Valley Pipeline project, a 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The frivolous lawsuit, titled BOLD ALLIANCE, et al. v. FEDERAL ENERGY REGULATORY COMMISSION, et al., was filed in the U.S. District Court for the District of Columbia. It claims the landowners’ property is a “taking” not properly compensated under the U.S. Constitution. Yesterday two important parties to the lawsuit–Dominion (representing Atlantic Coast Pipeline) and Mountain Valley Pipeline–filed a motion to dismiss the case. They have a strong argument. Why dismiss? Because the gentry landowners filing the lawsuit have ignored United State laws, which specifically state that (a) ONLY FERC has jurisdiction over the projects and decisions about whether or not they can get built, (b) if a supposedly aggrieved party disagrees with FERC’s decisions, they must first file for a rehearing, and if FERC still refuses, then (c) the supposedly aggrieved party can file a lawsuit ONLY with the U.S. Court of Appeals for the District of Columbia. The suers (Bold Alliance) did file for a rehearing and FERC has not yet ruled on the rehearing. Bold Alliance tried to sidestep the law by moving forward with a lawsuit prematurely. However, the really big no-no is that they filed in U.S. District Court for DC, NOT the Court of Appeals for DC. Big difference. We see no other choice for the judges in U.S. District Court but to dismiss the case since Bold Alliance should not have brought the case in their court in the first place…
    Read More “Dominion, MVP File to Dismiss VA-WV Lawsuit Against Pipe Projects”

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    New England Can “Thank” NY Gov. Cuomo for Sky High NatGas Prices

    As we pointed out earlier this week, New England now has the dubious distinction of paying the highest prices for natural gas–in the world (see New England’s Lack of Pipelines = Most Expensive Gas in the WORLD). The recent cold snap, which continues, has made natgas in New England about as valuable as gold. As we pointed out in our post, New Englander’s have nobody to blame but themselves and their uber-liberal, lefty, know-nothing leaders. Except maybe there is someone else who shares at least some of the blame–New York’s corrupt Democrat governor, Andrew Cuomo. Cuomo not only banned fracking (which screws all New Yorkers), he’s also blocked important pipeline projects through NY that would connect Marcellus gas supplies to New England (screwing New Englanders). So New Englanders can blame themselves AND blame Gov. Cuomo. Forbes writer David Blackmon does a masterful job in laying the blame where it belongs–at the feet of Prince Andrew…
    Read More “New England Can “Thank” NY Gov. Cuomo for Sky High NatGas Prices”