OSU’s Helpful Tips for Negotiating a Pipeline Contract
Pipelines have been, and continue to be, a big deal throughout the Marcellus and Utica region. Landowners who are approached about placing a pipeline through their property should (1) never sign the standard contract presented, and (2) never sign anything without first running it by a lawyer. Beyond that, what else should landowners think about/do when negotiating a pipeline easement? Clif Little from the Ohio State University Extension gives us some helpful tips…
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The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Sierra Club lies (again) about PennEast Pipeline; Vermont missing out on low natgas prices; Mass. residents gear up to oppose compressor station; OPEC agrees to cut output & prices jump; valuing our energy infrastructure; Sept natgas output lower despite higher prices; US will be 3rd largest natgas exporter by 2020; and more!
The world’s third largest oilfield services company, Baker Hughes, has struggled to stay afloat given the radical reduction in revenue they get for the services they offer. BH’s recent third quarter update showed the company lost $430 million, which is down from losing $912 million in 3Q15, a positive sign we suppose (see 
In November 2014, MDN told you about an innovative plan by PECO–formerly known as the Philadelphia Electric Company, is the largest combined electric/natural gas utility company in PA serving some 500,000+ natural gas customers in southeastern PA–to allow customers to sign up for its natural gas service and spread the cost over 20 years (see 
Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale with 90,000 acres of leases. Last year Stone quit drilling in the northeast and actually shut-in part of their production due to low prices (see 
Earlier this week MDN reported that Pennsylvania Gov. Tom Wolf helped kill a plan by Philadelphia Energy Solutions to expand its shale oil refinery in Philly by denying a lease on 200 acres at the Southport Marine site (see 
Word has leaked out that WGL Holdings, the umbrella company that owns Washington (DC) Gas Light Company and WGL Midstream, is considering selling itself to utility giant (and Spanish-based) Iberdrola. The deal, if it happens, has implications for the Marcellus. Earlier this month MDN reported that WGL Midstream, which already is a 7% owner in the Mountain Valley Pipeline project, had upped its ownership stake to 10% (see 
In May, U.S.-based oilfield services company FMC Technologies announced they will merge with their much larger quasi-competitor, France-based Technip, in an all-stock deal that will create a new company called TechnipFMC worth $13 billion (see 
Middle Eastern counties who sell us oil, including Saudi Arabia, have never been our “friends.” To pretend otherwise is dangerously stupid. We have depended on them for their oil, plain and simple. Oil equals energy and energy equals freedom and prosperity for the U.S. In the 1970s OPEC, the Organization of the Petroleum Exporting Countries, flexed its economic muscles against our country and brought us to our knees with an oil embargo that caused shortages and prices to skyrocket. MDN editor Jim Willis recalls growing up in the 1970s when gas was rationed and you could only buy gas every few days (odd and even days) based on your license plate number. A scary time in our country. Thing is, our enemies haven’t changed–they are still there. They’re just a whole lot richer than they were back then, richer with our money in their pockets. The shale revolution changed all that. We are close to being 100% energy independent–without the need to import oil. Oh, we’ll have to keep importing for the foreseeable future. We don’t have enough refineries here to process the type of oil we produce (light sweet crude). But in a pinch, we’d figure out a way. OPEC and Saudi Arabia have badly misjudged America. They thought they could flood the market with cheap oil and bankrupt America’s shale drillers. Didn’t happen. In fact, we got better. We figured out how to drill for less money. Little known fact: Bakken drillers can now make money with oil selling as low as $29 per barrel! In other words, it’s now time to put the last nail in OPEC’s coffin and kiss them goodbye. We sincerely hope finally defeating OPEC will be a top priority in the new Trump Administration…
It’s now apparent that the fix has been in from the beginning–that New York’s corrupt Gov. Andrew Cuomo, colluding with New York’s corrupt Attorney General, Eric Schneiderman, were on a mission to block the construction of the federally approved Constitution Pipeline, due to run from Susquehanna County, PA into Upstate New York (to Schoharie County). Before Cuomo decided to take the breathlessly lawsless act of blocking the pipeline by denying stream-crossing permits (being challenged in court), the Constitution asked for permission to begin clearing trees along the pipeline’s path. In January 2016, Schneiderman immediately objected (see 
The Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, last year reversed the flow for a large and important section of the pipeline. On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. REX has been hard at work on plans to expand capacity even more by beefing up compressor stations along portions of the pipeline. Their efforts have paid off. REX previously filed a plan with FERC to add another 800 million cubic feet per day (MMcf/d) of capacity along the same portion of the reversed pipeline. Yesterday the Federal Energy Regulatory Commission (FERC) gave REX the go-ahead to start additional compressors added at three locations along the route…
The city of Green in Summit County, OH has put NEXUS Pipeline on notice that if surveyors show up to survey in the city and if those surveyors don’t have permission from the landowner, or a judge’s order, those surveyors will be arrested and charged with trespassing. Apparently Green hasn’t gotten the memo that pipelines are the safest form of transportation on earth–period. NEXUS, as well as other pipeline projects, face a classic Catch-22 situation. In order to get the Federal Energy Regulatory Commission to grant a certificate to build the pipeline, the pipeline company must first conduct initial surveys to plan the route. With a certificate from FERC in hand, the pipeline then has the power of eminent domain to use on recalcitrant landowners to build the pipeline across their land. The open question is whether or not the pipelines can use eminent domain to conduct the survey ahead of a full FERC certificate. That’s the Catch-22. Surveying doesn’t do a single thing to a property, other than a few guys and gals running around for a short time looking through a transit and taking measurements. It’s a shame that landowners, in some cases, won’t even allow that. So Green has put NEXUS and the world on notice that the city and its residents don’t want to participate in the riches that come from shale. Fine. Let them eat dirt…