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    Anti-Pipe Objections Aired in Wrong Forum in Morgan County, WV

    As MDN has previously reported, Mountaineer XPress Pipeline includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Just last month the Federal Energy Regulatory Commission (FERC) gave Moutaineer XPress and its companion project, Gulf XPress, a favorable final environmental impact statement (see FERC Issues Favorable Final EIS for Mountaineer/Gulf XPress Pipes). The only thing left now is for FERC to issue a certificate for construction to begin–which won’t happen until Sen. Chuck Schumer and obstructionist Democrats allow a Senate vote on new commissioners, to restore a voting quorum at FERC. Don’t hold your breath. At any rate, a few local residents in Morgan County, WV appeared before the Morgan County Commission last night to complain about the project. The residents were there at the prompting of several Big Green groups, who organized the effort. Problem is, Morgan County can’t do a thing about the pipeline project. It was the wrong forum to complain in, but that didn’t stop them…
    Read More “Anti-Pipe Objections Aired in Wrong Forum in Morgan County, WV”

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    Nova Scotia’s Bear Head LNG Sees Surge of Interest

    For the past few years, MDN has tracked the progress of an LNG export plant planned for the eastern shore of Nova Scotia, the Bear Head LNG project (see our Bear Head LNG stories here). Of all the Canadian LNG export projects, Bear Head seems to have the most momentum. The project has received most of the necessary permits it needs to proceed. In fact, an official from the project says it is “shovel-ready” and can begin at any time. However, they aren’t ready to begin quite yet. The reason we track the project is because the most probable source of natural gas to feed the plant would come from the Marcellus Shale via the Maritimes & Northeast pipeline, converted to be bidirectional (see FERC Approves Atlantic Bridge Project for New England/Canada). However, the recent uptick in interest in Bear Head is not coming from the Marcellus, but because another LNG project on Canada’s West Coast was canceled last week. That has gas producers in Western Canada expressing interesting in piping their gas cross-country to the Bear Head project…
    Read More “Nova Scotia’s Bear Head LNG Sees Surge of Interest”

  • Marcellus & Utica Shale Story Links: Thu, Aug 3, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: NY politicians don’t let facts on fracking stand in way of ignorance; rig count rises in OH Utica; class-action lawsuit against Range Resources over wages; Atlantic Coast Pipeline debated at WV DEP hearing; WV Northern Panhandle needs more roads for natgas growth; Weymouth, Mass. compressor station badly needed; Pioneer gets more gas than expected from Permian; scientists use big data in hunt for oil/gas; Japan’s LNG imports expected to drop in 2 years; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Aug 3, 2017”

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    Lancaster Anti-Pipe Protesters Sell Protest Camp to Pipeline Co.

    In March, MDN told you about a small group of radical protesters who established a protest “camp” on a private farm along the path of the Williams $3 billion, 198-mile Atlantic Sunrise Pipeline in Lancaster County, PA (see Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster). Some of the so-called protesters had previously participated in illegal protests in Standing Rock, North Dakota, against the Dakota Access Pipeline being built there. Channeling that protest, the crazies in Lancaster stenciled “WELCOME TO THE STAND” across the side of the barn on the farm where they decided to form a new/illegal protest camp–hinting at what’s to come. The protesters were using the farm location to stash food, water, toilet paper, condoms…whatever. Hippie protesters need supplies, man. Well guess what? The farm’s owners, sympathetic to the protesters’ aim to block Atlantic Sunrise–just sold their farm to Atlantic Sunrise. How’s that for principled protest? Yep–gotta stop that evil pipeline from ruinin’ the pristine cornfields in Lancaster County–unless the price is right. And then it doesn’t matter…
    Read More “Lancaster Anti-Pipe Protesters Sell Protest Camp to Pipeline Co.”

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    Atlantic Sunrise Pipe Introduces App to Funnel Work to Local Biz

    There’s an app for that! Williams is launching an app (for smartphones) latter this month to connect Williams contractors with local businesses–to ensure as much of the work (and supplies) as possible is sourced from local businesses for the Atlantic Sunrise Pipeline project. This is a great sign that Williams believes they are about to receive final permits from the foot-dragging Pennsylvania Dept. of Environmental Protection (DEP) to begin work. In August, Williams will launch WillShop Local, a digital application designed to connect local businesses with contractors and construction crews working in the project area. The app is not for local businesses but for the contractors and workers working on the pipeline to locate local suppliers. So how do you, as a local business, get listed on the app? Glad you asked! Just fill out this form online. Here’s the lowdown on getting your piece of the $3 billion pie when Williams begins building Atlantic Sunrise…
    Read More “Atlantic Sunrise Pipe Introduces App to Funnel Work to Local Biz”

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    CONSOL Energy 2Q17 – Utica Well Problems, Production Decline

    CONSOL Energy released its second quarter 2017 update yesterday, along with a conference call to discuss results in 2Q17 and what’s ahead for the rest of 2017 and even a hint of what’s coming in 2018. Perhaps the biggest news coming from yesterday is that CONSOL had problems with two well pads in the Ohio Utica during last quarter–problems which slowed them down and resulted in a rare decrease in natural gas production year over year. CONSOL production was down 7% due to problems with drilling out frack plugs at two well pads in Monroe County, OH. According to CONSOL COO Tim Dugan, they were “one-time” events and unusual. Dugan said, more or less, CONSOL is experimenting and hey, sometimes the experiments go wrong. But the “operational improvements” the company has made by experimenting have far outweighed any temporary problems like those in Monroe County. CONSOL will spend more and drill more in 2017 than previously forecast–spending $620-$645 million to drill 34 wells this year (which works out to close to $19 million/well on the high end). In 2018, CONSOL will add a third drilling rig, although they’re not yet saying where it will get deployed (PA Marcellus or OH Utica). Here’s the latest from a company that will soon split in two (coal and gas) and rename itself…
    Read More “CONSOL Energy 2Q17 – Utica Well Problems, Production Decline”

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    Rover Drilling Contractor that Spilled Kept ‘Incomplete Records’

    Rover is Energy Transfer’s $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. On April 13, Rover workers experienced an “inadvertent return” of “horizontal directional drilling fluid”. That is, they sprung a leak and spilled nearly 2 million gallons of drilling fluid (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The leak did not spill into the Tuscarawas River (thankfully), but into a swamp (i.e. “wetland”) next to the river. The Ohio Environmental Protection Agency (OEPA) investigated the spill (following a tip) and claimed to find the presence of diesel fuel in the spilled mud (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). OEPA reported their findings to FERC and FERC launched an investigation into the Tuscarawas spill. FERC hired engineering firm J.D. Hair & Associates to review what went wrong. The Hair report is in. The reviewers can’t say with any confidence whether or not Rover (Energy Transfer) and the contractor doing the underground horizontal direction drilling (HDD) at Tuscarawas, Pretec Directional Drilling, followed project requirements. Why? Because of “very limited” documentation. That is, poor record-keeping. The 425-page report (full copy below) does offer some theories as to why Pretec’s HDD drilling leaked: Pretec encountered “sticky clay” while drilling, so they doubled the amount of drilling mud to clean the cutter. The extra pressure forced the mud out of cracks in the ground–and resulted in a 2 million gallon spill…
    Read More “Rover Drilling Contractor that Spilled Kept ‘Incomplete Records’”

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    ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company

    Last Friday MDN told you about two Democrat backbenchers trying to make trouble for Energy Transfer (via Rover Pipeline), as well as make trouble for the Federal Energy Regulatory Commission (see Two Democrat Backbenchers Try to Interfere in Rover Pipe, FERC). Sen. Maria Cantwell (from Washington State) and Congressman Frank Pallone (from New Jersey) are using recent problems with the construction of the $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, to target Energy Transfer and FERC. To be sure, Rover has had its issues–with drilling mud spills, water in trenches and knocking down a dilapidated old house that was on a list of historic sites. In a surprising (and frankly, stupid) move, Energy Transfer’s CEO Kelcy Warren wrote a letter responding to lightweights Cantwell and Pallone. He calls a FERC investigation of his company (which is part of what Cantwell and Pallone are demanding), based on problems with Rover, to be “unprecedented” and “extrajudicial.” Warren is right, of course. But he’s not the one who should be making the case. It makes Energy Transfer seem defensive. In the case of backbenchers Cantwell and Pallone, best just to ignore them…
    Read More “ET Rover Pipeline CEO “Baffled” by Dems Targeting His Company”

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    Calif. Microturbine Company Sells First Unit in Utica Shale

    MDN has highlighted Capstone Turbine Corporation, a California company that manufactures small electric-generating plants that run on natural gas, several times in the past. Our most recent story (in February) shared the news that Capstone had sold three more of their “microturbines” to midstreamers in the Marcellus Shale play (see Calif. Microturbine Company Sells More Units in the Marcellus). Capstone is back with another announcement. This time they’ve sold one of their newest model microturbines to an exploration & production company (i.e. driller) in the Utica Shale–to someone operating in Monroe County, OH. It is, according to Capstone, their first sale to someone in the Utica region…
    Read More “Calif. Microturbine Company Sells First Unit in Utica Shale”

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    DTE Energy Files to Build New Natgas-Fired Elec Plant in Michigan

    Proposed DTE Energy natgas-fired electric plant for Michigan

    DTE Energy has just filed paperwork in Michigan to build a new “state-of-the-art” natural gas-fired power plant in St. Clair County. The gas-fired plant would produce 1,100 megawatts of electricity, enough to power 850,000 homes. As with all of these kinds of projects, there are MANY regulatory hoops to jump through. If all goes according to plan, the new plant will go online five years from now–in 2022. The plant will cost nearly $1 billion to build and employ “hundreds” during its construction. It will offset, in part, three coal-fired plants set to be retired by 2023. While DTE makes no mention of the source of natgas that will feed it, two Marcellus/Utica pipelines–Rover and NEXUS–will cross parts of Michigan. It’s not much of a stretch to imagine that at least some (perhaps all) of the natural gas that will fire this plant will come from our region…
    Read More “DTE Energy Files to Build New Natgas-Fired Elec Plant in Michigan”

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    Oil & Gas Industry Created 656K Jobs, $90B in PA-OH-WV in 2015

    Yesterday the American Petroleum Institute (API) released a new study showing that the natural gas and oil industry supported 10.3 million U.S. jobs and added $1.3 trillion to the nation’s economy in 2015. The study, “Impacts of the Natural Gas and Oil Industry on the US Economy in 2015” (full copy below) found that jobs supported by the o&g industry increased by half a million since 2011, and showed that all 50 states, whether producing or non-producing, continued to benefit from the o&g industry. The study was conducted by PricewaterhouseCoopers (PwC) and commissioned by API. Yes, it’s an industry-funded study. But hey, if we don’t do the research and toot our own horn, you can be sure anti-fossil fuelers won’t do it for us! This is solid, no-nonsense (and real) economic research. We thought it would be interesting to look at the impact of the o&g industry in Pennsylvania, Ohio and West Virginia–the only three states producing Marcellus and Utica Shale gas and oil. Yes, each of those states still has a thriving conventional o&g industry as well and conventional numbers are part of the study–but let’s be honest. The unconventional (shale) sector dwarfs production of the conventional sector. When you look at o&g’s impact in our region, you find that it created 322,600 jobs in PA, 262,800 jobs in OH, and 70,900 jobs in WV. Value added (economic impact) for each state was: $44.4 billion in PA, $37.9 billion in OH, and $8 billion in WV. Add them all together and you get roughly 656,000 jobs and $90 billion of economic contribution in 2015. From one industry–oil and gas. WE LOVE FOSSIL FUELS!…
    Read More “Oil & Gas Industry Created 656K Jobs, $90B in PA-OH-WV in 2015”

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    The Adult Approach to Negotiating with Pipeline Companies

    Many times MDN has opined, as we cover the news about pipeline projects, that landowners need to realize they can’t just act like children stomping their feet and refuse to deal with pipeline companies–and expect the companies to give up and go away. Doesn’t happen. However, if landowners behave like rational adults and talk to pipeline companies–“Hey, don’t run it here through my best hay field but over there, through that field”–they stand a much better chance of a positive outcome. Landowners need to be respectful, open, honest, firm, but above all, talk to pipeline companies when they come calling. And when they do, they almost always get a much better result than they otherwise would have. We spotted an article written by a law firm operating in Ohio that takes the approach we’ve advocated. Sitterley, Vandervoort & Davis writes, “While the knee-jerk reaction may be to fight, to make it as difficult as you can for the pipeline company, employing a “take-no-prisoners” attitude that is aggressive may not be the best decision.” Well said. Sometimes a more firm approach is warranted–we’re not saying you have to fold like a cheap suit. What we are saying is that there’s a time and place for being nice, and maybe later, not so nice. Kindness works best…
    Read More “The Adult Approach to Negotiating with Pipeline Companies”

  • Marcellus & Utica Shale Story Links: Wed, Aug 2, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Analysts, investors, landowners all look for signs of Utica Shale revival; Bayesville (OH) developing plan to protect source water with power plant coming online; OH pipelines pump up Airgas; OH Supreme Court rules in lease case; Shell warehouse in Hopewell to employ 200 beginning next year; Wilmington (PA) supervisors approve gas drilling ordinance; the PA Senate’s budget farce; WVDEP hosts public hearing on Atlantic Coast Pipeline; state and local governments pledge to shackle their economies in name of global warming Paris agreement; court tells EPA to enforce Obama disastrous methane rule; American-made plastic making a comeback; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Aug 2, 2017”

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    Gulfport 2Q17: Most Active Utica Quarter Ever, 29 Wells Added

    Yesterday Gulfport Energy released the company’s second quarter 2017 operational (not financial) update. Gulfport is one of those companies that teases by separating the two. Normally we’d wait and report both together, but there is some interesting news coming from the operational side. Gulfport, which drills mainly in the Utica (but also the SCOOP, in Oklahoma) reports production is through the roof, mainly due to bringing online 29 new Utica wells during 2Q17. Gulfport said in a statement that 2Q17 for the Utica Shale was “the most active quarter from a tie-in line perspective the Company has experienced since entering the play in 2011.” Meaning some (many?) of the wells were already drilled, but they all got completed and hooked up to production in 2Q17. When you add all of Gulfport’s production together across the Utica (the majority) and the SCOOP and tiny bit in Louisiana, the company joined the 1 billion cubic feet per day (Bcf/d) club in 2Q17. If you look only at Utica production, Gulfport averaged 867 million cubic feet (MMcf) per day of production, which is getting close to the 1 Bcf mark–in just the Utica. That is a massive amount of production in the Utica…
    Read More “Gulfport 2Q17: Most Active Utica Quarter Ever, 29 Wells Added”

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    Energy Transfer Sells 32% Ownership in Rover Pipe to Blackstone

    In a surprise move, Energy Transfer Partners has sold what amounts to be 32.44% of the ownership of the still uncompleted Rover Pipeline to Blackstone, a private equity and so-called alternative equity firm based in New York City. In fact, Blackstone is the largest alternative equity firm (investing in things other than stocks/bonds/cash) in the world. Blackstone is paying ET $1.57 billion in a somewhat complicated transaction. There are multiple companies, on paper, involved. ET has a subsidiary (on paper) called HoldCo which owns 65% of the Rover project. Blackstone (and its subsidiary Blackstone Energy Partners) is buying 49.9% of HoldCo. When you do the math, it works out to be a 32.44% stake in the Rover Pipeline venture. Rover, as we have covered, is the $3.7 billion, 711-mile pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The project is facing setbacks and delays in both Ohio and West Virginia due to various accidents and spills. Phase 1 of the project–from Cadiz, OH to Defiance, OH–was supposed to be online by yesterday. That has now slipped to “late summer” (see Rover Pipeline’s Phase 1 In-Service Date Slips to “Late Summer”). The ET/Blackstone deal will close by the end of this year, presumably when the pipeline is up and running…
    Read More “Energy Transfer Sells 32% Ownership in Rover Pipe to Blackstone”

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    Anatomy of a Merger – The Years’ Long Road to EQT/Rice Deal

    In June EQT and Rice Energy announced that EQT will buy out and merge in Rice Energy, to create (in EQT) the largest natural gas-producing company in the United States (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). You may see headlines from time to time that say EQT is paying $6.7 billion for Rice. However, EQT is also assuming $1.5 billion worth of Rice Energy debt as part of the deal–so in our book, the total price paid is $8.2 billion, not $6.7 billion. Have you ever wondered how a massive deal like this comes together? Did the top brass at EQT phone up the top brass at Rice and say “let’s go for coffee” and a few months later there’s a deal? Nope. Doesn’t happen that way. In paperwork filed with the Securities and Exchange Commission, EQT (and Rice) outlined the chronology of how this deal came together. It’s far more complicated than the most complicated soap opera you can imagine. The story begins with EQT keeping a close eye on available acreage in the southwestern Marcellus region. EQT noticed an “accelerating trend” of consolidation. In 2015, a full two years before the EQT/Rice announcement, EQT lusted for more acreage and feared that if Rice combined with someone else, an important opportunity would be lost. So EQT got outside help (Wachtell Lipton) to begin the process of evaluating a buyout of Rice (June 2015). In July 2015, the muckety mucks from both Rice and EQT got together to talk, and “informally” discussed the potential benefits of a merger. But the talks went nowhere at the time. In early 2016, two other companies (unnamed) held similar talks with Rice. EQT then jumped back into the mix, in May 2016. EQT and Rice promptly got more serious about sniffing around each other, signing confidentiality agreements and beginning the due diligence process. Things moved quickly. Rice investigated mergers with two other companies and with EQT. EQT pressed Rice for an answer in July 2016. Talks broke down by the end of the summer in 2016. Rice then bought out Vantage and EQT snapped up more Marcellus acreage in various deals. And the soap opera goes on from there. We have the full script below…
    Read More “Anatomy of a Merger – The Years’ Long Road to EQT/Rice Deal”