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  • Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH

    ETP Says Much (Not All) of Rover Phase I Will Go Online in July

    July 10, 2017July 10, 2017
    Rover route through Ohio – click for larger version

    Last Friday MDN brought you the news that Energy Transfer is changing some of its previously planned underground horizontal directional drilling (HDD) to trenching in order to keep the 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, on schedule (see Rover Pipeline Converts Some Horizontal Drilling to Trenches Instead). Phase I of the project is the section from eastern Ohio, Pennsylvania and West Virginia to the Midwest Hub in Defiance, OH, via what is called Rover’s “Mainline A” segment. That entire segment was supposed to be completed this month–July 2017. Ain’t gonna happen. However, Energy Transfer says a significant portion of Phase I–from Cadiz, OH to Defiance, OH–will be completed this month. That’s a pretty big portion of the Phase I project–essentially spanning the state from eastern OH to northwestern OH. If ET can pull it off, it will be an impressive feat, given delays imposed by the Federal Energy Regulatory Commission…
    Read More “ETP Says Much (Not All) of Rover Phase I Will Go Online in July”

  • Broome County | CNG/LNG | Energy Services | Industrywide Issues | Litigation | New York | NG Advantage

    NG Asks Judge to Toss Case Blocking Virtual Pipeline in NY

    July 10, 2017July 10, 2017

    NG Advantage wants to build a “virtual pipeline” operation in ultra-liberal Broome County, NY, in a suburb of Binghamton. The location NG picked, after considering up to six locations in the region, was selected because of it’s proximity to major highways, proximity to the Millennium Pipeline, and availability of high-power electric lines. A virtual pipeline is nothing more than a compressor plant (series of compressor plants) that grabs gas from a pipeline, in this case the Millennium, and compresses it and loads it onto special tractor trailers that then deliver the gas to industrial customers like manufacturing plants, hospitals, and even small regional systems servicing homes. The location NG selected, in the Town of Fenton (within spitting distance of Hillcrest and Port Dickinson) was approved by the Town of Fenton after a detailed review. The area they selected is zoned industrial and is, in fact, a former dump site. However, residents from nearby neighborhoods (Hillcrest and Port Dick) were not aware of the project (so they claim) and when construction began to clear the dump site, and residents learned what was going to be built at the site, some of them demanded court action to oppose it. So far we’ve had two court cases asking county-level court (called “Supreme Court” in NY) to stop the project, which it temporarily did (see Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off). MDN editor Jim Willis attended a meeting by NG Advantage held for area residents and he has to say the company is bending backward, forward, sideways, upside-down, back flipping–and in general doing anything and everything they can–to prove to residents that a few trucks an hour hauling natural gas is not the horror they have been led to believe it will be. But in an all-too-familiar pattern, the residents’ minds are made up and nothing short of shutting the project down will be acceptable. And so the fight now goes to court. Last week NG responded to the temporary restraining order, asking the judge to toss it out so they can get back to building the facility. If for some reason NG is blocked, the company will be out $23 million…
    Read More “NG Asks Judge to Toss Case Blocking Virtual Pipeline in NY”

  • Empire Pipeline | Energy Companies | Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Seneca Resources | Statewide NY

    Northern Access Pipeline Court Case Further Threatens NY DEC

    July 10, 2017July 10, 2017
    NY DEC is on legal precipice

    A new threat against the New York Dept. of Environmental Conservation’s authority over pipeline projects is coming from yet another federal court. Last month MDN brought you the huge news that the U.S. Court of Appeals for the District of Columbia Circuit dismissed a lawsuit brought by the Millennium Pipeline against the NY DEC for delaying a decision to authorize a 9-mile pipeline Millennium wants to build from their main pipeline to an under-construction natgas-fired electric plant in Orange County, NY, called the Valley Lateral Project. Which may, at first blush, seem like a defeat. It was anything but a defeat. The justices, in their decision, said that the Federal Energy Regulatory Commission (FERC) has the right and responsibility to step back in and issue the water crossing permits themselves, overruling the NY DEC, if FERC so chooses (see DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay). A second court case in a different federal court, the U.S. Court of Appeals for the 2nd Circuit, is now progressing. That case was brought by National Fuel Gas Company in April against the NY DEC for a similar reason: delay and denial of federal 401 stream crossing permits for NFG’s Northern Access Pipeline project (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). That case is now advancing and the lawyers for NFG are quoting the decision from the Millennium case as precedent for a ruling by the 2nd Circuit Court that the DEC cannot arbitrarily stop a federally-permitted pipeline project…
    Read More “Northern Access Pipeline Court Case Further Threatens NY DEC”

  • Energy Companies | JKLM Energy | Pennsylvania | Potter County

    JKLM Drilling 12 Utica Wells in Potter County, PA This Year

    July 10, 2017July 11, 2017

    It’s been a while since we’ve updated you on a little-known (but rapidly becoming better known) company called JKLM Energy. In May 2016, the last time we wrote about JKLM, we told you the company had successfully drilled and was flowing gas from Potter County, PA’s first Utica Shale well (see Potter County, PA’s First Utica Well Fracked & Flowing). JKLM is owned by Terry Pegula, the guy who sold most of his Marcellus assets and used the money to buy the Buffalo Bills football team (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money and Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Pegula’s former company is East Resources. [Update: an alert MDN reader informed us that Pegula still owns East Resources.] JKLM is Pegula’s way of keeping his finger in the Marcellus/Utica pie. So what’s the latest? According to a brief article we spotted, JKLM “continues to move forward with an ambitious plan” to drill a dozen Utica wells in Potter County this year…
    Read More “JKLM Drilling 12 Utica Wells in Potter County, PA This Year”

  • Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Sunoco Logistics

    ME2 Pipe Workers Make Positive Impression in Lebanon County, PA

    July 10, 2017July 10, 2017

    Here’s not something you read every day, especially in Lebanon County, PA where local media seems only too interested in covering negative stories about pipelines: “What I have heard has all been positive – that the workers were willing to go beyond anything that might be expected of them and do little special things for the landowners.” That statement is from a town official in Lebanon County, talking about Mariner East 2 pipeline construction workers who are busy in the Lebanon County installing the first of two ME2 pipelines. Of course, not everyone is happy. But then, not everyone is always happy with anything–even a sunshiny day! Here’s what’s happening in Lebanon County with ME2…
    Read More “ME2 Pipe Workers Make Positive Impression in Lebanon County, PA”

  • Accidents | Chester County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Sunoco Logistics

    ME2 Pipe Work in Chester County Creates Water Well Issue for Some

    July 10, 2017July 10, 2017

    While the construction of the Mariner East 2 natural gas liquids (NGL) pipelines in Lebanon and Lancaster Counties appears to be sailing along with very few issues (see today’s companion story), the project did hit a small bump in the road in nearby Chester County, PA. A dozen families reported their water wells became cloudy–or lost pressure–after underground horizontal directional drilling (HDD) by Sunoco Logistics Partners in attempting to install pipes underground in places where digging trenches will not work. The company put up five families in local hotels for several nights. Sunoco also provided bottled water for all of the affected families. The working theory is that bentonite clay (i.e. drilling mud) is the source of the cloudiness. Fortunately, bentonite is non-toxic and used to manufacture many products, including toothpaste and kitty litter. The incident, while troubling and inconvenient for the families involved, has not set back the project–at all. Drilling and construction of the pipeline resumed on Saturday…
    Read More “ME2 Pipe Work in Chester County Creates Water Well Issue for Some”

  • Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation | Statewide VA | Virginia

    VA DEQ Schedules Public Hearings for MVP, Atlantic Coast Pipes

    July 10, 2017July 10, 2017

    In April MDN told you that the Virginia Dept. of Environmental Quality (DEQ) had succumbed to political pressure from the MANY lib Dems in the state that oppose benign pipeline projects, like the Atlantic Coast Pipeline (ACP) and Mountain Valley Pipeline (MVP), and changed their minds about the process they will use in issuing water quality certifications under Section 401 of the federal Clean Water Act (see Virginia DEQ Plans to Give 2 Pipeline Projects Detailed Exam). The DEQ will examine each segment of both ACP and MVP before issuing the required permits. The DEQ has scheduled five public hearings (i.e. circus freak shows) to accept comments on the projects. The hearings (scheduled below) will be held in August…
    Read More “VA DEQ Schedules Public Hearings for MVP, Atlantic Coast Pipes”

  • Electrical Generation | Energy Services | Industrywide Issues | Pennsylvania | Regulation | Talen Energy | York County

    York, PA Elec Plant Dropping Coal for Now, Burning Marcellus Gas

    July 10, 2017July 10, 2017
    Brunner Island Power Plant

    The Brunner Island Power Plant is located in York County, PA, but straddles Lancaster County. It is a huge 1,490 megawatt coal-fired electric generating plant, and has been the target of environmentalists for years. In February, MDN told you that the new owners of the plant are investing $100 million to retrofit the plant so it can, at least part of the time, burn Marcellus Shale gas (see York County, PA Electric Plant Begins Using NatGas as Fuel). The plant was issued a draft permit by the Pennsylvania Dept. of Environmental Protection (DEP) in April allowing the plant to discharge pollutants (into the atmosphere) and heated water into the Susquehanna River. The DEP is holding a public hearing on the draft permit, on July 24 in Manchester, PA. All of which sounds rather mundane. However, in coverage of the upcoming hearing, we read that Talen Energy (the new owner) “plans to burn little or no coal until 2019 as part of a ‘site evaluation.'” Now that is interesting. If true, that means either right now, or very soon, almost all (perhaps all) of the fuel powering the plant is Marcellus Shale gas…
    Read More “York, PA Elec Plant Dropping Coal for Now, Burning Marcellus Gas”

  • Calendar

    Calendar of Marcellus/Utica Events for Jul 10 – Oct 9

    July 10, 2017July 10, 2017

    Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.

    To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address. Thank you!
    Read More “Calendar of Marcellus/Utica Events for Jul 10 – Oct 9”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Jul 10, 2017

    July 10, 2017July 10, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: CONSOL CEO says Trump Admin wants to facilitate Marcellus/Utica; the recent surge in northeast gas production; 11 more Utica permits in Ohio; Mountaineer NGL looking for NGL storage customers; US will speed up approvals for o&g exploration on federal land; OFS companies go on the hunt for artificial lift; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Jul 10, 2017”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Transco | Williams

    Catholic Nuns Use Radicals to Build Chapel in Path of PA Pipeline

    July 7, 2017July 7, 2017

    Here’s a story of some Catholic nuns who have forsaken their vow to serve Christ, and instead have taken up a vow to serve radical environmentalism–which is apparently their new religion. A group of nuns in Lancaster County, PA invited the radical group Lancaster Against Pipelines (whose organizer participated in the illegal blockage of the Dakota Access Pipeline) to build a “prayer chapel” in the middle of a cornfield that belongs to the Adorers of the Blood of Christ (as they are called). The chapel is meant to stand in the way of Williams’ Atlantic Sunrise Pipeline, slated to go through that field. The so-called prayer chapel is little more than a few portable benches and a pop-up shelter like the one you would use when camping–just about big enough to cover a gas grill and leave enough room for two or three people to stand under it. The “prayer chapel” is obviously a statement thing. Knowing it will get torn down at some point, the sisters and their radical friends didn’t want to waste a lot of money on the project. Essentially this is a setup for a photo op when the bulldozers come through. It’s truly a shame to see how those who have dedicated themselves to the work of Jesus Christ have been co-opted and distracted from their far higher, and much better, calling. Unfortunately, the nuns are rank hypocrites. They themselves use–and promote the use of–natural gas for their own ministry on the very same parcel of property…
    Read More “Catholic Nuns Use Radicals to Build Chapel in Path of PA Pipeline”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

    Rover Pipeline Converts Some Horizontal Drilling to Trenches Instead

    July 7, 2017July 7, 2017

    Phase I of the 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada is supposed to be completed by July 2017, while Phase II is supposed to be done by November 2017. Will Phase I be done by the end of this month? We sure wouldn’t want to take that bet, but we suppose there’s still a slim chance. While building the $3.7 billion pipeline project, Energy Transfer (or more correctly its contractors) hit some snags, including spilling 2 million gallons of non-toxic drilling mud near the Tuscarawas River (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). The Federal Energy Regulatory Commission (FERC) slapped a stop work order on any horizontal directional drilling (HDD, or underground drilling) projects for Rover not already underway. A tipster later claimed diesel fuel was being added to the drilling mud and after testing a sample from the spill near the Tuscarawas, the Ohio EPA claimed to have found diesel in the mud (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). That made FERC really upset and touched off a full investigation. Meanwhile, Rover hired a new firm to oversee HDD activity and pledged with a cross-your-heart-pinky-swear to FERC that those kinds of accidents would not happen again. FERC recently allowed Rover to restart some of the work halted, which has radicals at the Sierra Club fit to be tied. However, in the “you can start again” order, we noticed that Rover has changed some (much?) of the remaining HDD projects into digging trenches instead. Obviously you can’t dig a trench across the Tuscarawas River–or a highway–or other such structures. But you can dig a trench right up to the edge of those structures. It’s our observation that a change from HDD to trenching has allowed Rover to restart stopped work in a number of locations…
    Read More “Rover Pipeline Converts Some Horizontal Drilling to Trenches Instead”

  • Energy Companies | EQT Corp | Industrywide Issues | M&A | Rice Energy

    Corp Raider Jana Sends Nastygram to EQT Demanding it Split in Two

    July 7, 2017July 13, 2017

    Earlier this week MDN told you the news that corporate raider Jana Partners, along with the Cohen family (of Atlas Energy fame), are colluding to try and stop the merger/sale of Rice Energy to EQT (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). The two groups together now own nearly 6% of EQT’s stock. Jana is trying to get two people added to EQT’s board. Their demands? Abandon the buyout/merger of Rice Energy, and that EQT needs to split itself in two, right now, into upstream (drilling) and midstream (pipelines). Jana filed the required paperwork with the Securities and Exchange Commission on July 3rd. On July 5th, Jana’s founder and managing partner, Barry Rosenstein, sent a letter (i.e. nastygram) to EQT–his list of demands. It’s going to be a long summer for EQT…
    Read More “Corp Raider Jana Sends Nastygram to EQT Demanding it Split in Two”

  • Energy Companies | Energy Services | EQT Corp | Industrywide Issues | M&A | Rice Energy | Rice Midstream

    Rice Midstream Investors Hope Deal with EQT Doesn’t Happen

    July 7, 2017July 7, 2017

    When EQT and Rice Energy announced a deal in June for EQT to buyout and merge in Rice to create the largest natgas-producing company in the U.S., it seemed like a match made in heaven (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). However, not everyone is in favor of the merger, including a corporate raider who know owns nearly 6% of EQT’s stock (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). You can add another group–from the “inside”–that doesn’t want to see the merger happen either: investors in Rice Midstream. Rice Midstream is an MLP, or master limited partnership, a different structure from the usual stockholding corporation. In an MLP, investors hold “units” instead of shares, and those units are tax-advantaged. The bottom line is that Rice Midstream investors are, according to a Bloomberg Businessweek article, concerned that they will get the short end of the stick in a post-merger EQT world. Already the value of their units has fallen 20% since the announcement of the merger. It wouldn’t hurt Rice Midstream investors’ feelings at all if Jana (evil corporate raider) prevents the merger from happening. For Rice Midstream investors, the enemy of my enemy is my friend…
    Read More “Rice Midstream Investors Hope Deal with EQT Doesn’t Happen”

  • Energy Services | Patterson-UTI

    Patterson-UTI Rig Count Hits New High of 160 in June

    July 7, 2017July 7, 2017

    As we do every month (and have for more than two years), MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for rig count health in general and rig count health in the Marcellus/Utica in particular. Patterson recently bought out and merged in Seventy Seven Energy (see Patterson-UTI Energy Completes Merger with Seventy Seven Energy). The addition of SSE’s rigs served to rocket up Patterson’s rig count number in April and May (see Patterson-UTI Rig Count Continues to Rocket Skyward – 159 in May). With the SSE now fully absorbed into Patterson, the rig count number has settled down. In June, Patterson’s count went up by a single new rig in North America, to 160. That is the 13th month in a row Patterson’s rig count has gone up–an astonishing run…
    Read More “Patterson-UTI Rig Count Hits New High of 160 in June”

  • Energy Services | Industrywide Issues | Marathon Petroleum | MarkWest Energy | Ohio | Pipelines | Statewide OH

    3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running

    July 7, 2017July 7, 2017

    In February MDN reported that Marathon Petroleum had begun to build a 49-mile condensate pipeline, called HALI–the Harpster to Lima Pipeline (see Marathon Begins to Build New 49-Mile Utica Pipeline in Ohio). The purpose of the project is a pipeline “for efficient and safe delivery of condensate from the Utica Shale to refineries where it can be processed into gasoline and diesel in order to meet the needs of producers, mid-streamers, marketers, diluent blenders, and refiners as the Utica Shale continues to develop.” At the time, the pipeline was expected to go online in July–this month. It beat the clock and went live last month (see Marathon Completes 49-Mile Utica Condensate Pipeline in Ohio). MarkWest, now owned by Marathon, issued an announcement yesterday to point out not only is HALI now up and running, but so too are two other liquids pipelines that MarkWest worked to expand: East Sparta to Heath, and Heath to Harpster. Together the three pipelines are moving liquids to refineries throughout the Midwest. Marathon is also working on a project to extend their service for diluents to western Canada…
    Read More “3 MarkWest Utica “Build-Out” Pipeline Projects Now Up & Running”

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