NG Advantage Virtual Pipe “Done Deal” in Broome County, Antis Stymied
MDN recently told you about a proposed “virtual pipeline” (i.e. trucking system) coming to MDN’s neighborhood. NG Advantage wants to build a new compressor station and tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called “virtual pipelines” compress natural gas and load it onto tanker trucks, and then distribute that gas to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: lots of truck traffic. Fenton’s Planning Board recently approved the project and although we thought it wasn’t quite yet a done deal, apparently it is a done deal, as a small group of antis learned earlier this week at a Town of Fenton meeting. Town of Fenton Planning Board approval is all that’s required. The Fenton Town Board has no say in the matter. It’s “a done deal” according to a town official speaking at the meeting. MDN friend Vic Furman attended the meeting and filed a report. Vic says he faced down the antis following the meeting with some hard truth: the reason they now have to live with this virtual pipeline and the traffic it will generate…is because they objected to an in-the-ground pipeline (the Constitution). Vic said they grudgingly agreed that he’s right…
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We’ve all heard and read about the massive protest camp that formed in North Dakota (see 
PennEast Pipeline has just released a list of 11 non-profit organizations receiving grants of “up to” $5,000 from the pipeline company. It’s not the first time (
Southwestern Energy, a huge driller which operates mainly in the Marcellus/Utica region, is losing its chief financial officer, Craig Owen, to a “non-competing” driller, Rosehill Resources. Rosehill drills in Texas and New Mexico, focusing on the giant Permian Basin oil play. Apparently Rosehill made Owen an offer he couldn’t refuse. We certainly don’t take this as bad news for Southwestern–other than losing a talented bean counter. It’s not an indication of problems at Southwestern–just somebody furthering his career. You can’t fault Owen for that. Meanwhile, Southwestern has hung out the “help wanted” sign for a new CFO, in case you know of someone…
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Ohio testing drinking water wells near Rover Pipeline; OH voters reject bailouts for nuclear power; OH Utica well permits recover in May; PA Senate approves bill to promote more use of natgas vehicles; WV severance tax helping budget deficit; the next big U.S. shale play; Shell tanker diverted from Qatar roils LNG market; and more! 
The International (non-U.S.) Baker Hughes rig count for May 2017 was 957, up 1 from the 956 counted in May 2017, and up 2 from the 955 counted in May 2016. However, the U.S. rig count for May 2017 was 893, up 40 from the 853 counted in May 2017, and up 485 from the 408 counted in May 2016. Like last month, the U.S. rig count continues to be more than double year-ago levels. Canada’s rig count continued further into the abyss in May, falling another 23 after falling 145 last month–down to 85. However, Canada’s May rig count was 43 higher than May 2016. So perhaps it’s not yet an apocalypse for our Canadian cousins. What about rig counts in the Marcellus/Utica? Although 1 net rig changed location–from WV to OH, overall the combined PA/OH/WV rig count remained the same as last month: 68 active rigs drilling…
Pennsylvania’s landowners, at least many of them, continue to be angry about getting low–or no–royalty checks. That’s not what they signed up for when leasing their property. A group of 200+ landowners packed a meeting last week in Wyoming County, PA to discuss the situation, and what to do next. The meeting was organized by the Pennsylvania Chapter of the National Association of Royalty Owners (NARO). One distinct possibility raised at the meeting: force Chesapeake (and others) into arbitration. NARO’s approach is to push for legislation, specifically PA House Bill (HB) 557 (see 
Tuesday night in Clarksburg, WV, the state Public Service Commission heard public comments about a non-utility utility–the Energy Solutions Consortium Harrison County Power plant project. The project is a Marcellus-gas fired electric generating plant that will produce 580 megawatts of electricity to sell to the PJM power grid serving 13 states. Hence our label of a “non-utility utility” project. Technically, the project is not a utility because it’s not regulated with strict price controls, like “traditional” utilities. However, it will sell electricity to regulated utilities. ESC was founded by father and son team Andrew and Matthew Dorn, based in Buffalo, NY. The Dorns are behind a series of WV natgas-fired electric plants, the first of which will get built in Marshall County (see 
Since the beginning of this year, MDN has warned our readers about a push by the Pennsylvania Dept. of Environmental Protection (DEP) to revise methane emissions rules, something called Air Quality General Permit 5 (GP-5), and Air Quality General Permit 5A (GP-5A). According to the DEP, proposed GP-5 and GP-5A, “establish updated Best Available Technology (BAT) requirements for the industry regarding air emission limits, source testing, leak detection and repair, recordkeeping, and reporting requirements for the applicable air pollution sources.” The Marcellus industry perceives the changes to be a threat to the future of the industry in the state (see 
It seems the Pennsylvania Dept. of Environmental Protection (DEP) has some air cover in its war against the Marcellus Shale industry (see Unmasking PA DEP’s War on Shale via Methane Regulations). The DEP has support from 10 PA legislators who have become fractivist tools by all using the same form letter/template in writing to the DEP. It’s really kind of funny. Below we have a copy of all ten letters so you can see for yourself. The letter signers (since they didn’t actually write them) are from eight PA House Democrats (Dom Costa, Dan Frankel, Robert Freeman, Patty Kim, Stephen Kinsey, Daniel Miller, Greg Vitali, Jake Wheatley), and from two PA Senate Democrats (Art Haywood, Sharif Street). Each form letter starts the same way: “It is critical that as a Commonwealth we continue our efforts to protect our residents and the environment from emissions associated with natural gas drilling.” And the drivel goes on from there. Oh, each one varies a word here or there, but make no mistake, this is form letter fractivism, plain and simple. Look for yourself at the Attack of the Clones…
In May, MDN noted a disturbing trend in the Commonwealth of Virginia of entangling law enforcement in the non-criminal issue of surveying for a federally-authorized pipeline project (see 
A somewhat obscure court case in Pennsylvania has potentially big implications for drillers who also own pipeline subsidiaries. In Lycoming County, PA, Seneca Resources (subsidiary of National Fuel Gas Company) drilled a series of wells on a pad called Well Pad E. Another NFG subsidiary, NFG Midstream, connected gathering lines to Well Pad E. NFG Midstream operates a compressor station to push the gas through the pipeline system. Both the well pad and the pipeline/compressor station are subject to air emissions regulations by the state Dept. of Environmental Protection (DEP). Each subsidiary on its own–the well pad, and the compressor station–don’t produce enough emissions to trip a costly upgrade in technology. However, if you combine both together into a single “source,” the two together do cross the threshold and would cost NFG big bucks in emissions technology to comply. The DEP lumped both together and told NFG to upgrade their emissions technology. Thing is, if another company owned the pipeline system, say Williams, the DEP would not have tried combining the two into a single source. So NGF appealed the DEP decision to the Environmental Hearing Board (EHB), a quasi-court set up to hear appeals of DEP decisions. The EHB found in favor of the DEP, so NFG appealed it again, this time to PA Commonwealth Court. Last week the court overturned the DEP decision and said just because two subsidiaries have the same parent, you can’t just lump them together as a single source for air emissions regulations… 
Exelon Corporation, the company that operates the Three Mile Island nuclear power plant near Harrisburg (yes, THAT infamous TMI), is accomplishing what it set out to do. Nuclear power simply can’t compete against low-cost, abundant, clean-burning natural gas. And it’s losing. Just like coal did. But nuke plants produce a lot of electricity. And until the past few years, they’ve been quite profitable for the companies that own them. Not any more. So what do those companies, like Exelon, do? Ask the government to stack the deck, of course! Exelon recently announced they will close TMI in the next year or two–unless Pennsylvania behaves like socialist New York and Illinois to prop up the money-losing plant with subsidies. We wrote about this issue recently (see 
Yesterday we reported on the federal Environmental Protection Agency’s wise move to begin the process of rolling back Obama-era regulations on methane, designed to regulate the oil and gas industry (see 