Dear MDN Subscribers (and site visitors):
MDN will take a short break for summer vacation Wednesday, July 8 through Friday, July 10. We will be back at full strength, rested and recharged, on Monday, July 13. If anything of major consequence happens over the next three days, we will post. Otherwise, see you next Monday!
Jim Willis
Editor
Please see the note on this article for an update about this story.
In September 2013 MDN told you about an innovative new $300 million gas-to-liquids (GTL) plant being built in Ashtabula, OH that will convert Marcellus and Utica Shale gas into chemicals and diesel fuel (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH and More Details on Ashtabula, OH Gas-to-Liquids Plant). The plant was going to be built by a Houston-based company called Pinto Energy using technology created by UK-based Velocys. But last June Velocys announced they were buying out Pinto Energy lock, stock and barrel–including (and primarily for) the Ashtabula GTL plant (see UK-based Velocys Buys Ashtabula, OH GTL Plant). The last we heard about the Ashtabula GTL plant was that the Ohio EPA issued a draft Lake Erie discharge permit in March 2015 and scheduled hearings about the plant (see OH EPA Issues Draft Lake Erie Discharge Permit for Ashtabula GTL Plant). Here’s the bombshell: Velocys has just suspended its Chief Executive Officer, Roy Lipski, pending an investigation into “allegations of serious misconduct”…
Read More “Velocys GTL Company Suspends CEO for Possible Serious Misconduct”
We wouldn’t classify it as one of the major miracles, but perhaps as a minor miracle. Something comparable to a picture of the Madonna weeping real tears. The Pennsylvania Dept. of Environmental Protection (DEP), under the leadership of DEP’s PennFuture Secretary John Quigley, has signed off on a MarkWest Energy request to double the size of the Bluestone natural gas processing facility in Butler County. MarkWest plans to build two new units at the facility (200 million cubic feet per day of capacity for each, or 400 Mmcf/d total). The first of the two will, if all goes as planned, come online by the end of this year…
Read More “DEP Approves MarkWest Plan to Expand Bluestone Gas Processing Plant”
In the midst of a political debate about whether or not to enact a severance tax comes another masterful one-two punch. First punch: the Democrat-controlled Pennsylvania Independent Fiscal Office (which is manifestly NOT “independent” but indeed is VERY dependent–on the Democrat Party) has issued an analysis that the world is ending for the impact fee assessed on Marcellus drillers. The IFO, spreading FUD (fear, uncertainty and doubt) says this year the impact fee is on track to raise the least amount of money it has raised since it’s introduction in 2012 (gasp!). How much less? Somewhere between $14 million and $33 million less (between 6-13% less). Why? Because drillers have slowed down and in some cases stopped drilling new wells due to low prices for natural gas. We note the IFO has never before, according to our recollection, issued such a forecast this early in the year. Why is that? Because the Dems need something/anything to try and bludgeon and bully Republicans into accepting the worst idea ever–taxing a single industry to transfer its wealth to another group of people who don’t earn any wealth on their own–teachers’ unions. Big Education only takes–they never give (except to transfer some of their taken money via union dues back the Democrat Party in a quid pro quo). The second punch then arrives right on cue, from a Democrat sycophantic news outlet publishes this breathless “news”…
Read More “FUD Splatter: PA IFO Says Lower Impact Fee Revenue Coming in 2015”
As part of an artful Democrat scheme to try and build support for PA Gov. Tom Wolf’s worst idea ever–a high severance tax on the Marcellus industry–the Pennsylvania “Independent” Fiscal Office (nothing of the sort) issued projections that cast fear, uncertainty and doubt that the state’s annual impact fee, which is really just another form of severance tax, will decrease this year (see our companion story today). In making their scary prediction, the IFO quotes several statistics about PA drilling as it stands so far in 2015 that MDN found enlightening (and we think you will too). Note: We’re not saying the IFO’s stats are wrong, we’re saying their conclusions are (with respect to a severance tax). The IFO-quoted stats tell us how much new well drilling is down (so far) in 2015, how many wells have been drilled but not completed, and how many drilled/completed wells have been turned off (“shut-in”)…
Read More “Snapshot of 2015 PA Marcellus Activity So Far – Numbers are Down”
People are phobic (fearful) of the darnedest things. Some people are afraid of germs (germophobia). Some are afraid of spiders (arachnophobia). Some are even afraid of furry little kitty cats (ailurophobia). Seems that all of us have one phobia or another. Some folks who live near the Keystone Sanitary Landfill outside of Scranton, PA have a phobia over sand that may be hauled to the facility (an irrational fear of sand is eremikophobia). Because Keystone accepts drill cuttings and has, in the past, also been permitted to accept frac sand waste from drilling operations, some people who live in the area are afraid. Of what? That the sand may contain nasty fracking chemical residue and that residue will leach out of the ground and enter their bodies–ahhhhhh! Never mind that the residue in frac sand waste, chemicals like hydrochloric acid, is in such minuscule quantities it’s the equivalent of the amount of hydrochloric acid found in eye drops (yes, eye drops). But facts never get in the way of a good phobia–or a good lie spun by the likes of anti-drilling groups like Food & Water Watch that exist to stop legal, legitimate and safe businesses in the United States from operating…
Read More “Fracsandphobia for Some Who Live Near Keystone Sanitary Landfill”
Primoris Services Corporation, a pipeline building company based in Dallas, TX, announced today they’ve landed a contract to build 6.8 miles of 16” diameter natural gas pipeline in Susquehanna County, PA. They’ll pick up a tidy $10 million for their efforts. Although Primoris doesn’t name the “midstream customer” in the announcement, it’s almost certainly Williams. While there are several smaller players in Susquehanna County when it comes to midstream and pipelines, Williams is pretty much the dominant force in that area and the only midstreamer we’re aware of that’s building anything right now…
Read More “Primoris Scores $10M Pipeline Contract in Susquehanna County, PA”
Everybody knows a lawsuit is coming against the New York Dept. of Environmental Conservation’s “Findings Statement” that bans fracking (see It’s Official: Cuomo Bans Economic Opportunity & Prosperity in NY). Anti-drillers, including DEC Commissioner Joe Martens, the guy hired by the Rockefellers to ban fracking who is now leaving the DEC to return to a Rockefeller job at his previous organization (the Open Spaces Institute), certainly expects there to be a legal challenge to his non-science-based political decision to ban fracking…
Read More “Everyone’s Talking Lawsuit over New York DEC Frack Ban”
A small (very small) victory for natural gas in New York State. And it’s sad that we have to accord this bit of news as actual news. Direct Energy and Xpress Natural Gas (XNG) announced today that they have just opened New York State’s very first compressed natural gas (CNG) production facility and distribution terminal–located in Central New York, east of Utica in Herkimer County. The facility will handle large volumes of natural gas, most of it coming from the Pennsylvania Marcellus (excuse us while we wipe tears away from the keyboard over the destruction to our upstate economy by Andrew Cuomo with his frack ban). This high volume facility, which can handle up to 5.7 billion cubic feet per year, is meant to serve businesses and even entire towns that are not located near a natural gas pipeline. Direct Energy and XNG are targeting not only New York State but also businesses and municipalities in Vermont, Massachusetts and Connecticut…
Read More “Let’s Celebrate a Small NY Victory: CNG Distro Center Opens in CNY”
Since most of the staff from one of Pennsylvania’s biggest anti-drilling groups, PennFuture, has moved to Harrisburg to work in the Gov. Tom Wolf administration (often referred to as the PennFuture administration around the halls of the Capitol), it’s time to appoint a new anti-driller to head the remaining husk of the organization left behind. John Quigley, now Secretary of the Dept. of Environmental Protection used to work for PennFuture. So did John Hanger, Wolf’s Secretary of Planning and Policy. Cindy Dunn, the current Secretary of the Dept. of Conservation and Natural Resources was, until she moved to DCNR, the head of PennFuture. Her departure left a hole that has now been filled by another trusted anti-driller, Larry Schweiger, someone with enviro street cred who worked for the National Wildlife Organization, Chesapeake Bay Foundation, Western Pennsylvania Conservancy, and the partisan environmental committee of the Pennsylvania General Assembly. He’s also good with a Kodak camera–snapping pictures of the BP oil spill in the Gulf (before all of the oil disappeared three weeks after the leak was fixed)…
Read More “Anti-Drilling PennFuture Gets New President to Replace Cindy Dunn”
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Tue, Jul 7, 2015”
Another new un-legislated law, euphemistically called a “rule”, is on the way from the federal Pipeline and Hazardous Materials Safety Administration (PHMSA). Last week the PHMSA released details of a new rule that would, among other things, require operators of interstate pipelines (pipelines that cross state borders) that flow natural gas or natural gas liquids or oil or condensate or… you get the idea–those pipelines must report a leak within 60 minutes (but “at the earliest practicable moment” meaning 60 seconds or less if you can manage it) to the feds from when the company becomes aware of such a leak. The new “rule” will also punish big pipeline projects costing more than $2.5 billion by hiking fees on the pipeline to cover PHMSA expenses in putting such a project through a PHMSA anal exam/review. Want to reverse the flow of the already-built pipeline? Tell the PHMSA first. Want to provide a tap on a pipeline for farms? Tell the PHMSA first. Had an accident/spill? Every employee from the janitor on up who may have had something to do with the operation of that pipeline will now get subjected to a PHMSA drug AND alcohol test. Welcome back to the USSR PHMSA…
Read More “Federal PHMSA Proposes New “Rule” for Interstate Pipelines”
Support for Dominion’s $5 billion, 550-mile Atlantic Coast Pipeline got a huge boost recently when a new group of over 100 businesses, labor organizations, and other local, state and national groups announced the formation of EnergySure – Standing Up for Reliable Energy. The founding members of EnergySure represent millions of employees and individuals across Virginia, West Virginia and North Carolina. You may recall MDN’s previous stories about rich, white Republicans (RINOs) opposing the Atlantic Coast Pipeline because it may leave a dark spot on some of their horse farms (see VA Gentry Class Raising $1M to Oppose Atlantic Coast Pipeline and Virginia RINOs in League with Dems to Stop Atlantic Coast Pipeline). We also told you about a small group of partisan, liberal, left-wing Democrats pretending to be a huge group of “concerned residents” from “Virginia and West Virginia” forming a group called Allegheny-Blue Ridge Alliance to oppose the project (see New Coalition of Same Old Antis Opposes Atlantic Coast Pipeline). All of those anti-pipeline efforts look like amateur hour compared to EnergySure with its backing of MILLIONS of people who support the Atlantic Coast Pipeline…
Read More “Millions of People Support Atlantic Coast Pipeline via New Group”
One of the informal metrics we’ve been following to see when the current slide in rig counts (and consequently drilling activity) has truly turned around is to follow the active rig counts for Patterson-UTI, a major drilling contractor with operations in the Marcellus/Utica region. In March, Patterson ran an average of 142 U.S. rigs and 4 Canadian rigs. In April, they ran an average of 131 U.S. rigs and 2 Canadian rigs. In May, Patterson ran an average of 122 U.S. rigs and 1 Canadian rig. You see the trend. What about June? Patterson recently issued June numbers, and sadly the slide continues. In June, Patterson ran an average of 112 drilling rigs in the U.S. and retained one active rig in Canada…
Read More “Patterson-UTI Active Rig Count Continues to Slide in June”
The Susquehanna River Basin Commission (SRBC), charged with protecting and managing the water resources in the Susquehanna River Basin, continues to perform its duty with distinction (unlike another commission with a similar name nearby that fails miserably to perform its duties). In 2010 the SRBC began collecting the data through a state-of-the-art Remote Water Quality Monitoring Network (RWQMN). Part of the remit in that effort is to determine whether or not Marcellus Shale drilling is having an effect on the quality of water in rivers and streams in the SRBC region. Two prior reports issued by the SRBC had shown no impact on the water quality of rivers and streams from drilling. Last week the SRBC delivered its third such report (full copy below). It is the most comprehensive study to date, covering data collected from 2010-2013. And guess what? The new report shows that Marcellus Shale drilling has not impacted local rivers and streams. Period. End of story. So now we have both the federal government, via the EPA, saying fracking doesn’t harm water supplies, and the SRBC saying the same thing. And the politicians in New York State ban fracking because of “maybes” and “mights” and “possibles”–all while real data from real drilling shows shale drilling does not harm the environment–not in the way claimed by NY political charlatans. Here’s what the SRBC said in releasing their latest report on water quality in the Marcellus region…
Read More “3rd SRBC Report: Marcellus Drilling Doesn’t Affect Water Quality”
An update on the potentially hostile takeover of Williams Companies by Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams is trying to get Energy Transfer CEO Kelcy Warren to sign a “standstill” clause before giving Warren access to Williams’ books. Such a clause would restrict Warren from buying shares of stock in Williams, lobbying investors and nominating his own candidates to the Williams board of directors–at least until a deal is cut. Warren is, so far, resisting and keeping up the pressure that he will move in a hostile manner to take over the company if they don’t cut a deal with him asap. This just in: Williams is now actively shopping itself and has “reached out” to more than 15 potential buyers, two of which have signed the standstill agreement and are, right now, poring over Williams’ books…
Read More “Williams Continues to Resist ET Offer, Talks with Other Suitors”