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    Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule

    Earth moving has begun for a compressor station in Columbia County. (Williams Partners)

    Well that didn’t take long! Yesterday MDN brought you the fantastic news that the Federal Energy Regulatory Commission (FERC) had granted Williams a certificate/go-ahead to begin construction on Atlantic Sunrise, a $3 billion, 198-mile natural gas pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County (see FERC Greenlights Construction of Atlantic Sunrise Pipeline). FERC issued their permission to begin construction last Friday. Based on a previous Williams statement, we expected construction to begin tomorrow, on Sept. 20th. However, as soon as Williams had the certificate in their hands, they began construction–LAST FRIDAY. Where? Williams fired up bulldozers at two locations–one in Wyoming County, the other in Columbia County (both in northeast PA), to clear land for two new compressor stations they will build as part of the project. Yesterday both Williams AND Cabot Oil & Gas issued the same press release to announce construction has begun. Interesting that Cabot issued the release too, showing just how important this project is to Cabot’s future (and to their stock price)…
    Read More “Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule”

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    FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that (will eventually) run from PA, WV and eastern OH through OH into Michigan and on to Canada–began flowing natural gas through a large portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). In the past three weeks, Phase 1A of the pipeline has steadily increased its throughput and now flows over 700 million cubic feet per day (MMcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH. However, it could flow more, if the Federal Energy Regulatory Commission (FERC) would lift its considerable boot off Rover’s neck and let them finish Phase 1B pipeline work in eastern Ohio to feed more gas to the main part of the pipeline. The problem is that Rover had early missteps, the most serious of which spilled 2 million gallons of non-toxic drilling mud in a swamp near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). An investigation by the Ohio Environmental Protection Agency (OEPA) found the presence of diesel fuel in the drilling mud, which means the mud wasn’t so non-toxic after all (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). Rover believes sabotage may have been the cause. Since April, FERC has blocked all new underground HDD work for the Rover project. Rover has asked (begged, pleaded) FERC, several times, for permission to restart the HDD work–at least in a few select locations. In August, FERC issued eight conditions before they would agree to lifting the HDD ban (see FERC Issues Rover 8 Commandments to Restart Horizontal Drilling). Rover says they have met all of those conditions. However, the OEPA says they have not. Last week OEPA asked FERC to continue blocking HDD activity until they (OEPA) are satisfied (see Rover Pipeline Still Battling Ohio EPA, Asks FERC to Lift HDD Ban). Rover fired off a letter to FERC that says OEPA’s public statements are opposite of their private statements with Rover. In other words, OEPA is lying. Who will FERC listen to? Now we know. They’re listening to Rover. Yesterday FERC lifted the ban on HDD for nine key locations–NOT including the Tuscarawas River site. FERC says they are still investigating that spill. FERC said, in lifting the HDD ban, that “Rover has demonstrated sufficient progress on the required rehabilitation and restoration of the areas affected by the inadvertent release and drilling mud contamination” and that the company is following FERC’s 8 Commandments. We’re pretty sure yesterday’s FERC decision won’t make the OEPA happy…
    Read More “FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes”

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    PA House Getting Ready to Cave on Severance Tax? Say it Ain’t So!

    It’s funny how mainstream media–and liberal Democrats–can turn on a dime. It was just a few days ago we read an AP story endlessly regurgitated across PA about how the PA budget fight had turned “ugly” and “personal” (see Pennsylvania’s ugly budget fight gets personal and regional). The story began this way: “The feel-good bipartisan spirit that Democratic Gov. Tom Wolf tried to instill last year in Pennsylvania’s Capitol is gone, stomped to bits in an increasingly ugly budget stalemate. Now, the Capitol seems gripped by a feud that is perhaps less partisan than it is regional and personal.” And now, a few days later, everyone is all-of-a-sudden happy and feeling better. It’s all bipartisan butterflies and unicorns popping up in Harrisburg. Why the change? Because now there are whispers that House Republicans may cave on adopting a Marcellus-killing severance tax. That has the antis, and the Dems (often one and the same) all giddy and feelin’ good. Is there any truth to the rumors?…
    Read More “PA House Getting Ready to Cave on Severance Tax? Say it Ain’t So!”

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    EIA Sept Drilling Report: Marcellus/Utica Production Hits New High

    MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR), yesterday. The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Last month EIA combined the Marcellus and Utica plays into a category they call Appalachia–a big change in the report (see EIA Makes Big Changes to Monthly Drilling Report, Combines M-U). What does the latest report forecast for the coming month? EIA says that natural gas production across all seven major shale regions will jump another 788 million cubic feet per day (MMcf/d) to a record high of 59.7 billion cubic feet per day (Bcf/d), with nearly half of the increase next month coming from one region–Appalachia. Here’s the latest edition of our favorite monthly report, with some analysis…
    Read More “EIA Sept Drilling Report: Marcellus/Utica Production Hits New High”

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    Constitution, NFG Pipes to Seek FERC Relief from NY DEC Tyranny

    Yesterday we told that you history has been made–the Federal Energy Regulatory Commission (FERC) has broken the back of the New York Dept. of Environmental Conservation (DEC) by overturning the DEC’s decision to block a short pipeline Millennium wants to build to a power plant in Orange County (see History Made! FERC Overrules NY DEC on Millennium Pipe Permit). The DEC has also blocked federally-approved pipeline projects in two other cases–the Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas (a Williams project), and the Northern Access Pipeline, a $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY, to carry Marcellus gas northward (a National Fuel Gas Company project). Given Millennium’s success in having FERC overrule NY DEC, one would think these other two projects would also file requests with FERC for the same thing. According to Reuters, NFG already has filed such a request, and Williams is about to…
    Read More “Constitution, NFG Pipes to Seek FERC Relief from NY DEC Tyranny”

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    Sierra Club Radicals Use FL Court Case to Challenge 2 M-U Pipelines

    In August, the D.C. Court of Appeals ruled in a case that 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 profoundly 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 Sierra Club is known for filing frivolous lawsuit after frivolous lawsuit. This is just one in a long line. The Southeast Market Pipelines Project 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), feeding gas-fired power plants in the region. The Sierra Club antis said the three projects together didn’t take into consideration an increase in carbon and methane that would result from the three projects getting approved, and that said carbon and methane will contribute to man-made 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. Just one teeny tiny problem (for the antis): all three pipelines–Sabal Trail, Hillabee Expansion and Florida Southeast Connection–are up and running. This decision likely will not shut them down. But the decision does have a big impact on projects not yet built. Drunk on their earlier success, yesterday the Sierra Club filed two requests (demands?) with FERC requesting the agency redo their already-done environmental impact statements for Dominion’s $5 billion Atlantic Coast Pipeline from WV through VA and into NC, and for EQT’s $3.5 billion Mountain Valley Pipeline, from WV into VA. The Sierra Club says the Sabal Trail decision is all they need to force FERC into redoing the EIS’–to force FERC to consider mythical man-made global warming…
    Read More “Sierra Club Radicals Use FL Court Case to Challenge 2 M-U Pipelines”

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    Ultra Petroleum Not Out of Woods Yet, Corp Raider Fir Tree Attacks

    Ultra Petroleum, based in Houston, TX, is an independent exploration and production (E&P) company mainly focused on drilling in the Green River Basin of Wyoming. Ultra also drills for oil in the Uinta Basin/Three Rivers area in Utah. In addition, Ultra maintains a “non-operated” (someone else does the drilling) position in the Pennsylvania Marcellus shale with leases on 72,000 net acres–no small amount. One year ago, in April 2016, Ultra filed for Chapter 11 bankruptcy (see Ultra Petroleum (with 184K Marcellus Acres) Files for Bankruptcy). A year later, Ultra announced it has emerged from bankruptcy, raising nearly $3 billion to pay back creditors and floating 195 million shares of new stock (see Ultra Petroleum Does Bankruptcy Right, Exits with Higher Value). We thought Ultra was out of the woods, now on a strong footing. But perhaps not. Yesterday a loathsome corporate raider, Fir Tree Partners, announced it’s intention to “immediately engage with Company management to pursue value-maximizing strategic alternatives for UPL.” UPL is Ultra’s stock ticker acronym. Unfortunately for Ultra, Fir Tree is their largest stockholder. As a quick reminder for those new to MDN, corporate raiders (these days renamed to “activist investors”) take a major position in a company so they can pressure the company into firing hundreds (or thousands), and selling off assets, in order to make the company look better on paper. Once the company looks better, the share price goes up and the raider sells its stock in the target company, taking a big profit and moving on to the next target. It’s disgusting. And now it’s happening to Ultra…
    Read More “Ultra Petroleum Not Out of Woods Yet, Corp Raider Fir Tree Attacks”

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    EIA: Gas & Oil Will Dominate Energy Mix for Next 20+ Years

    Last week our favorite government agency, the U.S. Energy Information Administration (EIA), released its annual “International Energy Outlook 2017” (full copy below). What does the report show? EIA predicts energy consumption is set to increase 28% from 2015 levels by 2040–in a little over the next 20 years. To meet this huge uptick in energy, EIA predicts fossil fuel use–led by natural gas and oil–will continue to account for about 77% of energy consumption through 2040. So much for the renewable nirvana future we’re always just a year or two away from (according to Al Gore). Fossil fuels will remain the #1 fuel of choice by the world for the next generation, and almost certainly the generation after that, and the one after that. Do you now see why drilling for oil and gas in shale is so vital to the future of not only our country, but the world? According to EIA, most of the growth in energy consumption (and fossil fuels) will come from China and India. Here’s the lowdown on what’s just around the corner…
    Read More “EIA: Gas & Oil Will Dominate Energy Mix for Next 20+ Years”

  • Marcellus & Utica Shale Story Links: Tue, Sep 19, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: The best opportunity to keep WV’s bright young people in the state is O&G; North Dakota sets record natgas output in July; wastewater pipelines see big growth in Texas; BH rig count drops by 8 to 936; coal faces a gassy death in US; the new rock star of oil & gas is digitalization; potential scenarios for 2017-18 natgas market withdrawals; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Sep 19, 2017”

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    History Made! FERC Overrules NY DEC on Millennium Pipe Permit

    Finally the Federal Energy Regulatory Commission (FERC) has had enough shenanigans from the corrupted New York Dept. of Environmental Conservation (DEC). In a historic, precedent-setting decision, on Friday FERC overruled DEC’s denial of a water permit for Millennium Pipeline’s tiny 7.8 mile pipeline spur from the main Millennium Pipeline to a natural gas power plant under construction in Orange County, NY. On Wednesday, Aug. 30, the DEC issued a denial letter to FERC and Millennium. In it, they claim that FERC’s review of the power plant project (that the pipeline will feed) is deficient based on a recently-decided court case about a pipeline project in Florida (see Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline). The radicalized DEC used the Florida case as an excuse to refuse stream crossing permits for the Millennium Pipeline project–claiming FERC had not considered long-term effects of mythical man-made global warming that would come from the power plant if the Millennium pipeline is connected to and feeds the plant. The DEC decision was a naked attempt to grab power not given to it under federal law. FERC said ENOUGH, and ruled on Friday the DEC had taken too long (over one year) in dithering with a decision on the Millennium pipeline request. A recent ruling by the U.S. Court of Appeals for the District of Columbia said FERC has the power and authority to overrule the DEC when they take longer than one year to grant permits (see DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay). So FERC just exercised their federal, court-approved authority and smashed the DEC into the ground. LOVE IT! Of course the humiliated DEC spit and sputtered and said they will likely sue…
    Read More “History Made! FERC Overrules NY DEC on Millennium Pipe Permit”

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    FERC Greenlights Construction of Atlantic Sunrise Pipeline

    Bad news for the Sisters of the Corn and the radicals at Lancaster Against Pipelines. On Friday the Federal Energy Regulatory Commission (FERC) granted Williams permission to begin construction on Atlantic Sunrise, a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. Last week the Sierra Club and a mish mash of other nutball groups begged FERC to delay issuing an order that Williams can commence with construction, claiming FERC’s delay in considering a rehearing delayed a lawsuit and the lawsuit hasn’t had enough time to work it’s way through the court system (see Big Green Begs FERC to Delay Construction of Atlantic Sunrise Pipe). As was expected, Big Green’s begging and pleading fell on deaf ears. Williams previously said they plan to begin construction on Sept. 20th–this Wednesday. Ladies and gentleman, start your (backhoe) engines! Sisters of the Corn (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe), you may want to pick up your wooden park benches and the flower trestle–what you call a “chapel”–in the middle of your corn field. Here comes the Atlantic Sunrise!…
    Read More “FERC Greenlights Construction of Atlantic Sunrise Pipeline”

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    Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U

    TransCanada, one of Canada’s leading midstream/pipeline companies, 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. The original open season last year was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). The plan needs a bevy of regulatory approvals, the main one being the Canadian National Energy Board (NEB). The clock is ticking and time is running out. In hearings before the NEB last week, the Canadian Association of Petroleum Producers pleaded their case that the plan get approved. Without it, western Canadian gas simply can’t compete with cheap, abundant Marcellus/Utica Shale gas flowing north. In somewhat dramatic terms, Canadian drillers claimed the “future of western Canada’s natural gas industry could depend on pipeline company TransCanada winning regulatory approval” of their lowball plan…
    Read More “Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U”

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    19 Radicals Arrested for Blocking DEQ Building in Richmond, Va.

    As MDN told you two weeks ago, radicals from the Chesapeake Climate Action Network (CCAN) said they would stage “massive” protests at several Virginia Department of Environmental Quality offices last week to protest against two Marcellus/Utica pipeline projects: the $5 billion Atlantic Coast Pipeline and $3.5 billion Mountain Valley Pipeline. Both projects have large segments crossing Virginia (see Radical CCAN to Protest VA DEQ Against Marcellus/Utica Pipelines). CCAN said up to 1,000 people would turn up to behave badly at DEQ office sites–using sit-ins, “prayer circles” and sidewalk “rallies.” The so-called “massive” rallies where held–and it was bust. At the main DEQ office in Richmond, “dozens” turned out to protest the pipelines. If it weren’t for the signs and sloppy dress code, you wouldn’t have known they where there–they would have blended in with the crowd. In the end, 19 of the radicals were arrested for blocking an entrance to the building where the DEQ has its office. The news account of the “arrest” of these radicals sounds more like a tea party than a crime scene. One radical said she though the police “were just great”…
    Read More “19 Radicals Arrested for Blocking DEQ Building in Richmond, Va.”

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    Big Green Mouthpiece StateImpact PA Gets $653K Propaganda Grant

    It certainly isn’t journalism. It’s one-sided, anti-fossil fuel advocacy. And it’s profoundly biased. StateImpact Pennsylvania, a Public Broadcasting initiative that’s funded, in part, with taxpayer money, is about to expand by adding another three propagandists to the three it has now. Joy. Four PBS organizations, led by WITF in Harrisburg, PA, is receiving a $652,902 grant from the Corporation for Public Broadcasting (CPB) to expand its propaganda operation and write more anti-drilling, anti-pipeline stories. Stories that are one-sided. Aren’t you glad your taxpayer dollars go to fund this “reporting?” They’ll throw in a little global warming hysteria, just to spice it up…
    Read More “Big Green Mouthpiece StateImpact PA Gets $653K Propaganda Grant”

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    PIOGA Corrects PA Rep. Kate Harper’s Whoppers on Severance Tax

    Republicans hold majorities in both the Pennsylvania Senate and the Pennsylvania House. As is happening on the national level, the Republican Party in PA is also rife with establishment, left-leaning members who are not in their positions to benefit their constituents and all residents of the Keystone State, but are there to feather their own nests. Swamp dwellers. They are Republicans In Name Only (RINOs). One such RINO is PA Rep. Kate Harper, a “Republican” from Montgomery County–a Philadelphia suburb. Harper has been in the House since Jan. 2, 2001 (16 years, long past time she was voted out of office). Harper proposed an insane severance tax as part of this year’s budget deal. It’s not her first time at the trough. Harper has been proposing a severance tax for years (see PA RINO Rep. Kate Harper Trots Out Severance Tax, Again). Harper got her nose bent out of joint last week when her latest severance tax proposal, which she was just sure would make it this time, was removed from the budget bill during a committee vote. In responding to that removal, Harper made some inaccurate claims about the severance tax and the drilling industry. PIOGA (Pennsylvania Independent Oil & Gas Association) has stepped up to set the record straight on Ms. Harper’s whoppers…
    Read More “PIOGA Corrects PA Rep. Kate Harper’s Whoppers on Severance Tax”

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    ExxonKnew Radicals Suffer Major Federal Court Defeat in Mass.

    Last week MDN told you that New York’s highest court, the Court of Appeals, had just ruled that the New York State Attorney General, Eric Schneiderman, has the right to demand documents in a court case that accuses Exxon of hiding internal research that shows burning oil and gas leads to catastrophic, man-made global warming (see NY Court Tells Exxon to Turn Over Records to Corrupt AG). This part of the coordinated, colluding effort by Big Green groups to try and shake down Exxon for billions, to “take down one of the biggest” fossil fuel companies, hoping others would fold like a deck of cheap cards, part of the #ExxonKnew campain. Since we brought you that bad news, it’s only fair to bring you the good news too. Not long after the corrupted high court in NY delivered that verdict, a federal judge in Boston dealt a major blow to environmental activist groups suing Exxon as part of the #ExxonKnew campaign. In Boston, a judge ruled the Conservation Law Foundation (CLF) suing Exxon had unnecessarily injected global warming flummery into its lawsuit–and the CFL was ordered to refile their lawsuit without it–essentially gutting their effort to sue Exxon. It was a stand-up-and-cheer moment…
    Read More “ExxonKnew Radicals Suffer Major Federal Court Defeat in Mass.”