IECA Comes Out Swinging: Urges FERC to Approve 10 M-U Pipes NOW
Industrial Energy Consumers of America
(IECA) is the only national cross industry trade association dedicated to a broad array of energy/environment related issues. IECA is a 501(C)(6) nonprofit, member-led organization created to promote the interests of manufacturing companies for which the availability, use and cost of energy, power or feedstock play a significant role in their ability to compete in domestic and world markets. The IECA is using its considerable heft and going to bat for ten pipeline projects critical to manufacturers–projects that move Marcellus/Utica gas out of the northeast to other parts of the country. IECA’s “aggressive lobbying” is chiding FERC for moving too slowly in approving NEXUS Pipeline (DTE Energy & Spectra Energy), Mountaineer Xpress Pipeline (Columbia Gas Transmission), Leach Xpress Project (Columbia Gas Transmission), Eastern System Upgrade (Millennium Pipeline), Atlantic Coast Pipeline (Dominion), Atlantic Bridge Pipeline (Spectra Energy), Mountain Valley Pipeline (EQT & NextEra Energy), Susquehanna West Project (Kinder Morgan), Transco to Charleston Pipeline (Dominion), and VEPCO – Warren County Project (Columbia Gas Transmission). In each filing with FERC, the IECA asks FERC to ignore the shrill voices of “keep it in the ground” nincompoops. IECA says, “Manufacturing companies do not have an alternative for natural gas. Major manufacturing production processes and equipment are designed to specifically use natural gas. Nothing else can be substituted for natural gas. We cannot operate manufacturing facilities on electricity, especially solar or wind power. Coal and oil are also not an alternative for a variety of reasons, including EPA air regulations that limit their use.” Here is a brief description for each project, along with the IECA brief filed with FERC for each of those six projects…
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As we have pointed out in past articles, the electricity industry is a complicated industry, with some some power producers operating as “regulated” and some operating as “unregulated.” Regulated power producers have their rates, and rate of profit, set by government regulators–which limits profits but also guarantees profits. Unregulated power producers, on the other hand, do not have the safety net of the government forcing ratepayers to pony up–they operate in the free market, taking all of the risks–and reaping the rewards if those risks prove worthwhile. Many (most?) of the new natural gas-fired electric plants getting built, like those we have focused on in Ohio over the past several days (see
Inspired by the criminal actions of eco-terrorists in North Dakota (see
Rabidly anti-drilling organizations like the Philadelphia-based Clean Air Council (CAC) have been using the deep pockets of their contributors to stir up dissent against Sunoco’s Mariner East 2 NGL pipeline, particularly in towns in the Philly orbit (see
We have to chuckle. It was just two months ago, in November 2016, that Virginia Gov. Terry McAuliffe approved changes to environmental regulations that requires “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning” (see
For the past couple of years Gulfport Energy has made major investments in the local communities where it operates in Appalachia (see 
Regardless of what you think about so-called man-made global warming, you would think that scientists should be allowed to express their views on the topic without being hunted down and burned at the stake like a witch, reputationally speaking. Yet if a climate scientist dares to express misgivings about the actual data behind global warming, that is exactly what happens. Dr. Judith Curry, a highly respected climate scientist, recently resigned her tenured position at Georgia Tech–because of climate witch hunters. Dr. Curry started out as a man-made global warming true believer, but was shocked at the “Climategate” emails that show researchers with the Climatic Research Unit (CRU) at the University of East Anglia were intentionally making up the numbers in an effort to prove their theories. False data. Lies. Distortions. Dr. Curry investigated and questioned climate orthodoxy, and for that, she has been hounded out of Georgia Tech. What is wrong with this picture? When did science become politics? When did simply asking tough questions become the basis for destroying someone’s reputation?…
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Surpise! Washington Post says Maryland should NOT ban fracking; AEP wants to upgrade electric line to help Utica industry; Shell closes on 2 remaining properties for cracker; the anti-pipeline, anti-enviros; global upstream outlook for 2017 is optimistic; from Russia with love, for American fractivists; drillers start hiring again; and more!
In December the Potter Township Board of Supervisors convened a public hearing on the proposed Shell ethane cracker plant–to be built in Potter Twp–that ended up going on for 10 hours (see
In October 2014 the Pennsylvania Dept. of Environmental Protection (DEP) fined PA driller EQT $4.53 million for a leaky wastewater impoundment in Tioga County, PA (see 
We always find it distressing when companies begin to tap dance to please corporate raiders. That is apparently what is now happening at Marathon Petroleum, owner of MarkWest Energy. We don’t pretend to fully understand what’s happening (this is all high finance stuff), but our impression is that Marathon is “dropping down” certain assets (i.e. moved from one legal corporate entity to another) more quickly than it otherwise would have, due to pressure on the company from Elliott Management, a so-called activist investor in the company. “Activist investor” is what used to be called “corporate raider” 25 years ago, which are companies or people who invest just enough in a company to control it, forcing the company to shed assets and fire people in order to boost the stock price–just to turn around and sell and make a quick buck. Apparently Elliott wants Marathon to a) move assets around from one company to another PDQ, and b) consider spinning out Speedway into its own company, or selling it. Speedway, you may or may not know, is Marathon’s retail gas filling station business. Speedway bought out and merged in the old Hess filling stations (see
Maryland is a lot like New York–populated with lefty liberals who love to tell other people how to live their lives. Maryland went through a years-long process, just like New York, and eventually released what would likely be the strictest drilling regulations in the nation, in late 2014 (see
Energy Transfer Equity (ETE), owner of more than 62,500 miles of natural gas and natural gas liquids pipelines, with many miles in the Marcellus/Utica, has just gone a cash-raising bender. ETE is, by the way, the owner of the planned Rover Pipeline–a $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 Monday the company announced they have raised $580 million in cash by selling new 32 million new units (think shares of stock). In addition, yesterday the company said it had floated new notes (IOUs) worth nearly $1.5 billion. Wow! Add it together and the total is over $2 billion–a serious pile of cash. What are they doing with all that cash? Paying off old debt…