PHMSA Issues New Gas Utility Pipeline Regs to “Improve Safety”
Columbia Gas of Massachusetts (NiSource) never quite recovered from a series of explosions in September 2018 that occurred with its local delivery pipelines north of Boston (see Local NatGas Pipes Explode Near Boston Killing 1, Injuring 25). The explosions and resulting fires tragically killed one teenager and injured 25 others. It left some 8,600 households and businesses in the Merrimack Valley without natural gas for months. Several class action lawsuits were filed against the company, which got settled for $143 million (see Columbia Gas Pays $143M to Settle Lawsuit from Mass. Explosions). The company reached a plea deal to (a) sell the company and (b) pay the largest criminal fine ever imposed under the Pipeline Safety Act (see Columbia Gas of Mass. Sentenced to $53M Fine, Probation, Sell Co.). The Biden Pipeline and Hazardous Materials Safety Administration (PHMSA) is using the Merrimack Valley episode to float a raft of proposed new regulations that will supposedly ensure the safety of millions of miles of local natgas delivery pipelines.
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Over the past 12 months, the NYMEX Henry Hub price for natural gas (front month contract) has traded as high as $9.68/MMBtu (August 22, 2022) and as low as $2.01/MMbtu (April 13, 2023). Lately, we’ve been hovering around the $2.50 mark. One of the energy industry’s favorite parlor games is guessing where the price will go over the next year or so. Once a month, the U.S. Energy Information Administration (EIA) hauls out its dart board and makes a prediction. Various analysts and consulting/analytics firms chime in from time to time. Today, we have a price prediction through the end of 2024 from a highly respected source: RBN Energy.
MARCELLUS/UTICA REGION: Now the time to expand Utica Shale usage; Hydrogen brings opportunities, challenges for West Virginia; NATIONAL: Biden admin blocks off millions of acres from oil, gas leasing.
Last November, one of the ten natural gas storage wells at the Equitrans Rager Mountain Gas Storage Area in Jackson Township, Cambria County (in Pennsylvania) began to leak. The well leaked roughly 100 million cubic feet per day (MMcf/d) of gas into the atmosphere (see 
East Daley Analytics, based in Colorado, is a consulting firm that specializes in identifying, understanding, and monitoring operational risk throughout the oil and gas value chain. A “Daley Note” published yesterday by the company focused on the Mountain Valley Pipeline (MVP), providing a status update and a couple of intriguing (some might say controversial) comments. East Daley says while Equitrans, the builder of MVP, says it will finish the project by the end of this year, East Daley’s analysts don’t think so. East Daley also says when (not if) the pipeline gets done and comes online, the newly available capacity won’t translate into new/more shale drilling in the Marcellus/Utica–at least not initially.
The U.S. Dept. of Energy (DOE) is giving utility giant Duke Energy (mega profitable) and one of its natural gas suppliers, Williams (i.e., the Transco Pipeline, also mega profitable) $1 million of taxpayer money to do their jobs of monitoring for methane leaks. Dontcha love corporate welfare? Of course, if the government is going to blow taxpayers’ money on energy projects like uncompetitive and unreliable renewables, why not give a little love to fossil energy too, right? Still, it bugs us.
Carbon offsets are the same thing as carbon taxes. A carbon offset refers to reducing so-called greenhouse gas emissions by buying a credit from someone who plants trees or agrees not to cut down trees. A company gets to keep on polluting as long as it pays a tax to do it–pretending they are helping the precious environment by paying to plant or not chop down trees. It is the darnedest feat of mental gymnastics we’ve ever seen. Who thinks up this stuff? (Hey, wanna buy a bridge in Brooklyn? We have one to sell!) A new study by the leftists at the University of Cambridge published yesterday in the journal Science exposes the sale of carbon credits as a scam.
Bonus post today! Something we came across after completing our list of stories to write and share–but just too good to pass up. This story perfectly illustrates what has happened inside the Democrat Party from its fearmongering about climate change and demonization of fossil energy. A group of kids in their early 20s (thoroughly brainwashed from K-12 and now in college) showed up at a hoity-toity, very exclusive fundraiser for Massachusetts Gov. Maura Healey, herself a hardened anti-fossil fuel leftist. The kids crashed her party being held at a private Nantucket Island home. The kids demanded Healey shut down all new fossil-fuel projects in the Bay State, and demanded she answer “yes or no” right then and there to their demands. Healey demurred, and the wacko kids got loud and mouthy and had to be escorted out of the event. It came close to a fistfight between some of the older leftwing libs attending the event and the kids. Civil war in the Democrat Party.
New shale permits issued for Aug 14 – 20 in the Marcellus/Utica finally turned around. There were 27 new permits issued last week, way up from the 10 issued the prior week. Last week’s permit tally included 21 new permits in Pennsylvania, 2 new permits in Ohio, and 4 new permits in West Virginia (after no permits in WV for three weeks in a row). The top permittee for the week, for the second week in a row, was Chesapeake Energy, receiving 6 permits–5 in Bradford County and 1 in Susquehanna County.
An Act of Congress (the Fiscal Responsibility Act) cleared away the remaining obstacles to completing the 303-mile Mountain Valley Pipeline (see 
Two Marshall County, WV landowners with the same last name (obviously related) sued Southwestern Energy (SWN), accusing the company of “well bashing,” in March of this year (see 
Two weeks ago MDN told you that eight “blue” states, including New Jersey (the Blue State Mafia), are challenging the Williams Regional Energy Access Expansion (REAE) project, a plan to beef up the Transco pipeline in Pennsylvania and New Jersey to deliver an extra 829 MMcf/d of Marcellus gas to PA, NJ, and Maryland (see 