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    Shell Pays $43/Foot in Recent Deal for Ethane Pipeline Easements

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    In February 2016, MDN exclusively broke the news that Shell had begun to sign leases with landowners for a 97-mile ethane pipeline (two branches) to feed their mighty cracker plant (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). Since that time we’ve tracked any news we could find that reveals what Shell is paying landowners in Beaver County (and elsewhere) for the right to run the ethane pipeline (called the Falcon Ethane Pipeline) across their land. So far, we’ve seen rates as high as $75 per foot, and as low as $43 per foot. In the most recent round of easements–the first signed since August–Shell once again paid landowners $43/foot. Here’s the details of where the latest easements were signed, and for how much…
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    PTT Global Signs Memorandum with Ohio re Belmont Ethane Cracker

    On Monday, Mr. Supattanapong Punmeechaow, president and CEO of PTT Global Chemical (Thailand’s largest petrochemical company) signed a Memorandum of Understanding (MOU) with JobsOhio regarding PTT’s proposed ethane cracker plant. The MOU pledges to “enhance the well-being and quality of life” for those living in the area near the proposed cracker plant. PTT announced in April 2015 they are interested in building a $5 billion ethane cracker plant complex in Belmont County, OH (see It’s Official: Belmont County Chosen as POSSIBLE Cracker Plant Site). Since that time, all of the signs have been positive. PTT has said a final investment decision will be forthcoming by the end of this year. The MOU signing ceremony on Monday is yet more evidence that this project will happen. The ceremony itself is kind of interesting. It was not held in Ohio–but in Washington, D.C. where a trade delegation from Thailand was visiting (Punmeechaow was part of the delegation). So John Minor, president of JobsOhio, traveled to D.C. for the signing ceremony, which was held in what we can only describe as a garage…
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    FERC Advances Plan to Reverse Part of TGP to Haul M-U NGLs to Gulf

    There’s lots of acronyms in that headline, so right up front let us restate the headline in clearer language: The Federal Energy Regulatory Commission (FERC) has just taken the next step to advance a project by Kinder Morgan to reverse a portion of the mighty Tennessee Gas Pipeline (TGP) to reverse its flow, to go from the northeast to the southwest, in order to haul Marcellus/Utica natural gas liquids (NGLs) to the Gulf Coast. Currently TGP hauls natural gas (not liquids) from the Gulf to the northeast. With a bumper crop of natural gas produced by the Marcellus/Utica, gas from the Gulf is no longer needed. Kinder Morgan, the owner/operator of TGP, first floated the idea to reverse 964 miles of their pipeline back in 2013 (see KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South). The pipeline reversal is part of the broader $4 billion Utica Marcellus Texas Pipeline (UMTP) project. The first step in making the project a reality is to get FERC’s permission to “abandon” (stop using) the 964-mile segment, called Pipeline No. 1, from Louisiana to Ohio. TGP filed to get permission to abandon it in Feb. 2015. Last Friday FERC granted permission for TGP to abandon that segment of the pipeline. Plenty of people objected to the plan, including existing natural gas customers along the 964 miles who now get their gas from TGP. FERC investigated all claims and found the project will not negatively impact the environment, or the pocketbooks, of those who objected. The question now is, when will work begin to abandon that portion of the pipeline?…
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    New M-U Pipes Ease Constraints, Another 4.5 Bcf/d Coming Early ’18

    According to experts speaking at the Platts Houston Energy Forum held yesterday, new pipelines going into service in the Marcellus/Utica region are having an effect. Pipeline constraints–not enough capacity to get the gas to markets outside of the region–are easing. Prices in some areas of our region where gas is bought and sold are improving (going up), but prices still have a long way to go. Perhaps the biggest eyeopener is that at least in the near-term, we may end up having more pipeline capacity than gas to fill it. By next spring, another 4.57 billion cubic feet per day (Bcf/d) of new pipeline capacity will go online: Access South and Adair Southwest projects on Texas Eastern Transmission will add another 520 million cubic feet per day (MMcf/d); Leach XPress on Columbia Gas Pipeline will add 1.5 Bcf/d; Rover Pipeline will get finished, bringing online an additional 2.55 Bcf/d (on top of the existing 700 MMcf/d flowing now). Here’s what the experts had to say about what’s coming down the pike in our region over the next year or so…
    Read More “New M-U Pipes Ease Constraints, Another 4.5 Bcf/d Coming Early ’18”

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    Lancaster PA Hospital Goes Political with Anti-Fracking Article

    Perhaps it’s time for those who support using clean-burning natural gas to find a new hospital–if they live in the Lancaster, PA area. In the fall edition of The Journal of Lancaster General Hospital, an anti-fossil fuel doctor who practices at the hospital published an outrageous political smear job pretending to be a scientific article–lying about natural gas and its extraction and its “pollution” of the environment. Dr. Alan S. Peterson, M.D., who specializes in geriatrics (he’s 71 himself), is an anti-driller with a history of activism against the shale industry. In an article in the Fall issue of the Journal, Peterson quotes a number of discredited “studies” funded with money from Big Green groups to make a case against the shale industry. Unfortunately, the article is dressed up scientific garb, giving it the illusion of accuracy. It is nothing more than typical anti hoo-ha. Two weeks ago Dr. Peterson penned an op-ed for a local Lancaster news outlet opposing a plan to fix dramatically slow response times at the Dept. of Environmental Protection (DEP) when issuing permits related to shale drilling. Peterson is political, plain and simple–and he opposes the extraction of fossil fuels, which says all you need to know about Dr. Peterson, and about Lancaster General…
    Read More “Lancaster PA Hospital Goes Political with Anti-Fracking Article”

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    Antis Rally in Orange County, NY Against Clean-Burning NatGas Plant

    For more than two years MDN has chronicled the journey of Competitive Power Ventures (CPV) to build a $900 million Marcellus gas-fired electric plant in Wawayanda, NY, called the Valley Energy Center. Early on the project faced court challenges, but a judge gave final approval to build it in September 2015 (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). On Aug. 30, the Cuomo-corrupted NY Dept. of Environmental Conservation (DEC) issued a letter to FERC and Millennium, denying Millennium the right to build a 7.8 mile pipeline to feed the new plant (see Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline). Two weeks later overrode the DEC and told Millennium they can build it anyway (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). A group of anti-everythings in Orange County are adamantly opposed to the project–and they think if they can stop the pipeline, they can stop the project. Not true. If a gas pipeline is not run to the plant, CPV plans to use fuel oil instead (see If NatGas Pipeline is Blocked, NY Elec Plant Will Use Oil Instead). One way or the other, the plant will be completed in early 2018–and go online, producing electricity. As for what powers it–that remains to be seen. We found it interesting (and amusing) that a group of ninny nannies staged a rally on Monday in Wawayanda (where the CPV plant is under construction), to once again oppose the project–and to encourage the Orange County Legislature to pass a non-binding resolution against the project, hoping for…hoping for we’re not sure what! The plant is getting built. It’s a done deal. It’s going online early next year. It’s a done deal. The only thing that remains is to decide if clean-burning natural gas will power it–or much dirtier fuel oil. Apparently the antis are too obtuse to grasp this simple fact…
    Read More “Antis Rally in Orange County, NY Against Clean-Burning NatGas Plant”

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    Con Edison Plans to Pay Customers to Use Less NatGas

    This story is really rich. Consolidated Edison (ConEd) is one of the nation’s largest investor-owned energy companies. ConEd is a utility, operating in the New York City area. It is one of the largest (perhaps the largest) seller of natural gas in NYC area. In a press release that has us equally laughing and crying, ConEd floats a new plan to meet the “growing natural gas demand” it’s seeing from customers. Early in the release ConEd states the facts: “construction of new natural gas pipelines [in New York] is not keeping pace with growing demand.” Why? Because New York has a corrupt governor, Andrew Cuomo, who caters to wild radicals that give him money for his campaigns. Yes, CORRUPT. And so Cuomo issues edicts to executive agencies, like the Dept. of Environmental Conservation (DEC), to deny permits for new pipelines. Hence, NY doesn’t have enough pipelines to flow increasing demand for natural gas. ConEd just admitted that. So how does ConEd plan to solve the problem they have? Maybe anchor a floating LNG import terminal off Long Island? Nope. Virtual pipelines to haul more gas to its facilities? Nope. How about rail cars hauling CNG or LNG? Nope. Here’s the brilliance at ConEd–they want to raise everyone’s gas and electric rates so they can pay building owners to not use as much gas! What?! That’s right, ConEd has filed a rate case with the New York State Public Service Commission that requests permission to raise rates and pay people to use less natural gas. Welcome to Wonderland (i.e. New York), Alice…
    Read More “Con Edison Plans to Pay Customers to Use Less NatGas”

  • Marcellus & Utica Shale Story Links: Wed, Oct 4, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Ohio school gets $42M from single natgas power plant; US Senate discusses $10B NGL hub for northeast; natgas fuels manufacturing in PA; Trumpe EPA plans to repeal Obama Clean Power Plan; Scotland gets ready to ban fracking permanently; new LNG trucks from Volvo; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Oct 4, 2017”

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    PA State Budget Deal Close, with NO Severance Tax

    Yesterday afternoon Pennsylvania Senate Majority Leader Jake Corman told the media that talks on finishing the state budget are “closer than we’ve been in some time.” He also cautioned, “nothing is agreed to until everything is agreed to.” As for a severance tax, Corman said current discussions do not include a severance tax, which is interesting as Corman is one of the traitorous Republican Senators who voted for a severance tax back in July (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Maybe he’s now seen the light? So how will the state raise more revenue to meet its voracious appetite to overspend? Basically from three sources: (1) truck stop slot machines and “mini” casinos; (2) borrowing against future tobacco settlement payments; and (3) new taxes on warehouses. We haven’t 100% dodged the severance tax bullet for this year, but we’d say we’re 99% sure there will be no severance tax as part of the final budget, which is very good news…
    Read More “PA State Budget Deal Close, with NO Severance Tax”

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    Fed Judge Rules for Seneca Resources in PA Injection Well Fight

    An update in the ongoing case of a proposed injection well in Highland Township (Elk County), PA. In 2013 the radical leftist group Community Environmental Legal Defense Fund (CELDF) convinced ignoramuses in Highland Township to pass a so-called Community Bill of Rights. Seneca Resources, a driller with leases and an active drilling program in Elk, had planned to drill an injection well on their own property to dispose of their own flowback and produced water. The CELDF-inspired ordinance in Highland prevented it, and Seneca threatened to sue the town (see Seneca Resources Threatens to Sue PA Town over Injection Well). Seneca made good and filed to sue, but the town and CELDF tried to block the lawsuit. Didn’t work. The lawsuit advanced. New supervisors were elected and promptly voted to overturn the so-called Community Bill of Rights (see Elk County Town Wises Up, Abandons Effort to Block Injection Well), enraging the nutters. However, last November enough locals remained fleeced to pass a so-called home rule charter which contained language making injection wells illegal. The charter was/is essentially the Community Bill of Rights under a different name and different legal structure. In an effort to extract itself from a legal hellhole of its own making, the new Highland supervisors asked a federal judge to rule in favor of Seneca Resources, but to not make Highland pay legal fees and penalties for delaying the injection well (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). Last Friday the judge did rule in favor of Seneca, gutting provisions in the home rule charter that attempt to regulate oil and gas (and its waste). It is a legal victory for Seneca Resources and their plan to drill an injection well in Elk County…
    Read More “Fed Judge Rules for Seneca Resources in PA Injection Well Fight”

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    Sales Tax Revenue in OH Counties with Utica Shale Soars

    New research done by our friends at Energy in Depth has found that sales tax revenue generated by Ohio’s top eight Utica Shale counties–Belmont, Carroll, Columbiana, Guernsey, Harrison, Jefferson, Monroe and Noble–rose 45% from 2011 to 2016, while sales tax revenue in the state’s other 80 counties rose an average of 30%. That is, shale counties (collectively) brought in 15% more revenue into both county and state coffers than non-shale counties. Ohio levies a 6.75% sales tax on goods sold. Of that, 5.75% goes into the state budget (the black hole in Columbus), while 1% stays in the county budget. Conclusion: shale is helping to fund the entire state. That is, all state residents benefit from the shale industry in Ohio, in a very tangible way. Here’s the update from EID showing how shale counties are outperforming non-shale counties in the Buckeye State…
    Read More “Sales Tax Revenue in OH Counties with Utica Shale Soars”

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    Competition Heats Up Between W. Canadian & Marcellus/Utica Gas

    Last week MDN reported the Canadian National Energy Board (NEB) had approved of TransCanada’s plan to lowball the price to haul natural gas all the way from Alberta (in western Canada) to the Toronto Dawn Hub in eastern Canada (see Canadians Approve TransCanada Pipe Lowball Plan to Compete with M-U). TransCanada cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. TransCanada’s pipeline theoretically can ship 3.5 billion cubic feet per day (Bcf/d) of natural gas from west to east. When Rover Pipeline is full online sometime in 2018, it will ship up to 3.25 Bcf/d of Marcellus/Utica gas to the Dawn Hub. If NEXUS Pipeline ever gets built, it too will one day flow gas all the way to the Dawn Hub–up to 1.5 Bcf/d. TransCanada is attempting to get there first. In this clash of the titans, between western Canadian gas and Marcellus/Utica gas, who wins? There will be a number of winners, including the drillers shipping the gas. And the pipeline companies shipping the gas. But perhaps the biggest winners will be Ontario residents who use natural gas. Their prices to buy and use gas are heading much lower…
    Read More “Competition Heats Up Between W. Canadian & Marcellus/Utica Gas”

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    Sierra Club in Court Oct 18 Against Cove Point, 2 More LNG Plants

    The deep pockets of the radical Big Green group, the Sierra Club, continue to vex the oil and gas industry. The Sierra Club is involved in so many lawsuits against our industry, you literally need a score card to keep track. Three of the cases the Clubbers have on deck come before the D.C. Circuit Court of Appeals in two weeks–on Oct. 18th. The three cases involve Federal Energy Regulatory Commission (FERC) approved LNG export projects. One of the three is Dominion’s Cove Point project, which is due to export its first shipment this month or next (see Cove Point to Begin LNG Exports in October or November!). The other two LNG projects in the Clubbers’ sights are both Cheniere Energy projects–Sabine Pass and Corpus Christi. Sabine Pass is currently the only LNG export plant in operation in the U.S. The Sierra Club lawsuit against all three projects challenges FERC’s approval of them, arguing the plants negatively affect the environment and will make Mom Earth sick. While no one expects these lawsuits to go anywhere, you never know, which is why it’s important to keep an eye on it…
    Read More “Sierra Club in Court Oct 18 Against Cove Point, 2 More LNG Plants”

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    Ethane Storage a Hot Topic at Shale Insight – Who Will Use It?

    One of the major themes at last week’s Shale Insight conference was NGLs (natural gas liquids), in particular ethane–and how the petrochemical industry that uses those NGLs will revolutionize the economic landscape of western PA, eastern OH, and northern WV–the tri-state area. One of the hottest of the hot topics is ethane storage. As we reported in early September, a research team from West Virginia University spent the past year studying geologic regions in 50 counties in the Marcellus/Utica Shale region to see if our region would support a proposed $10 billion ethane storage hub (see WVU Appalachia Ethane Storage Hub Final Report – We Need it Bad). The conclusion? Heck yeah! WVU researchers released their findings in a 181-page report titled “A Geologic Study to Determine the Potential to Create an Appalachian Storage Hub for Natural Gas Liquids.” Among the study’s findings: A shale ethane storage hub could help create $36 billion in investment and more than 100,000 permanent jobs. The report and its findings were on the lips of a number of speakers at Shale Insight…
    Read More “Ethane Storage a Hot Topic at Shale Insight – Who Will Use It?”

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    FERC’s Rapid Response in Sabal Trail Case Shuts Down Sierra Club

    In August the D.C. Court of Appeals ruled in a case that (we previously thought) may have long-term, very negative consequences for the oil and gas industry related to pipeline development (see DC Court of Appeals Legislates New Law re FERC & Global Warming). The litigious, anti-fossil fuel radicals of the Sierra Club previously filed a lawsuit against the Federal Energy Regulatory Commission (FERC) blaming FERC for not considering mythical man-made global warming as it conducted a review of three pipelines in the southeast. The Southeast Market Pipelines Project (SMP) is an umbrella project for three natural gas pipelines in Alabama, Georgia, and Florida. The linchpin of the project is the Sabal Trail pipeline, which travels from Tallapoosa County in eastern Alabama, across southwestern Georgia, and down to Osceola County, Florida, just south of Orlando (nearly 500 miles). The Sierra Club said the three projects together didn’t take into consideration an increase in carbon and methane that would result from the three projects serving electric generating plants, and that said carbon and methane will contribute to global warming. The D.C. Court of Appeals agreed and instructed FERC to reconsider its environmental assessment of the three projects–vacating an approval of the main part of the project, the Sabal Trail pipeline. In a brilliant move, last week FERC filed a draft supplemental environmental impact statement (SEIS) to fulfill the court’s order. In it, FERC looks at the potential for extra carbon/methane in the atmosphere from several electric generating plants fed by the SMP pipelines. As for evaluating the overall effect on Mom Earth, FERC said there currently is no accurate method available that can do it. In other words, this lawsuit that the Clubbers so fervently thought would lead to stopping all sorts of projects just fizzled out (we can’t be happier) thanks to FERC’s quick action. FERC has effectively shut down the Sierra Club’s best chance of stopping pipeline projects…
    Read More “FERC’s Rapid Response in Sabal Trail Case Shuts Down Sierra Club”

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    EIA’s 2016 Natural Gas Annual Report – TX Down, PA Up

    Last Friday the U.S. Energy Information Administration, our favorite government agency, released its Natural Gas Annual 2016 report (full copy below). Weighing in at 214 pages, this report is full of data. It is a datamonger’s dream come true. A few highlights: In 2016, U.S. dry gas production actually FELL from the previous year, the first time that has happened since 2005. Texas saw the biggest dry gas production decline (10%), while Pennsylvania had the biggest increase in production (10.2%). This is the fourth straight year PA production has gone up–thank you Marcellus Shale! Natural gas consumption across the country reached a new record high–for the seventh year in a row. Imported natural gas went down again–for the ninth year in a row. Here’s the full report, and a few bullet point highlights to feed your inner datamonger…
    Read More “EIA’s 2016 Natural Gas Annual Report – TX Down, PA Up”