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NFG’s Northern Access Pipe Wins “Final” Court Case Against NY
The final hurdle for National Fuel Gas Company’s (NFG) Northern Access Pipeline as it travels through New York State has fallen. Yesterday the U.S. Court of Appeals for the Second Circuit ruled that yes, New York (according to federal guidelines) waived its right to grant a Section 401 water crossing permit under the federal Clean Water Act when NY declined to rule on the permit application within one calendar year. That means NFG can now proceed with the project, although the company previously said they would not begin to build until 2022.
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Pennsylvania Gov. Tom Wolf continues his efforts to force his state, without approval by its citizens (via the legislature) to join the so-called Regional Greenhouse Gas Initiative (RGGI), a glorified carbon tax on coal- and gas-fired power plants. What Wolf and his lackey Pat McDonnell at the Dept. of Environmental Protection refuse to tell PA citizens is just how high the RGGI carbon tax has climbed. The U.S. Energy Information Administration reports the most recent RGGI quarterly auction, held on March 3, 2021, resulted in the highest price (tax) per ton of CO2 yet.
In a very gentle and diplomatic way, Pennsylvania State Senator John Yudichak (Independent from Wilkes-Barre) told Department of Community & Economic Development (DCED) Secretary Dennis Davin on Monday he’s not doing his job. Yudichak told Davin “site selectors” (people who work with companies to select sites for big manufacturing and other types of facilities across the U.S.) aren’t aware of the tax credits available as part of Act 66, a law passed last year aimed at building new petrochemical plants in PA.
Yet another attack on the oil and gas industry by the officially out-of-control Democrats in Congress. In years gone by a few fringe leftists from the Democrat Party have introduced several bills, including the FRAC Act, aimed at permanently ripping the U.S. Constitution apart by overriding states’ rights to regulate and control oil and gas drilling within their own borders. Using the faux excuse of man-made global warming, the FRAC Act overrides the individual states and grants broad/sweeping power to the federal Environmental Protection Agency (EPA) to regulate fracking. The Dems are at it again, reintroducing the FRAC Act and four other bills (called the “Frack Pack”), all aimed at restricting/eliminating fracking nationwide.
MARCELLUS/UTICA REGION: Babst Calland named to Pennsylvania Business Central’s top 100 organizations; Mariner East opponents have gone home, but ET is still helping others; Borowicz pleased with update on unique energy project in county; Gov. DeWine names former Franklin County judge as next PUCO chairwoman; OTHER U.S. REGIONS: Residential bills would grow 20 percent under Bangor Natural Gas rate hike; US natural gas storage likely posts modest draw as injection season looks to start early; INTERNATIONAL: Qatar tightens global gas market grip with bold expansion moves.
If you live in Pennsylvania, actually in just about any state, you couldn’t miss the big splash made yesterday when PA’s worst governor in the past 50 years, Tom Wolf, announced a massive taxpayer-funded initiative to build seven new solar energy facilities in six PA counties that will strip away some 2,000 acres of valuable PA farmland to produce enough electricity to power just half of PA’s state government. (Perhaps we can call it the half-baked solar project?) Leftists in mainstream media are falling over themselves to praise Wolf. We (as usual) have a different take.
When Equitrans’ 303-mile Mountain Valley Pipeline, which will connect West Virginia and bountiful supplies of Marcellus/Utica gas to southern Virginia (eventually beyond), is finally done, will Equitrans send a bill to the odious Sierra Club and other Big Green groups that have intentionally held up the project *for years* with a blizzard of frivolous lawsuits? Frivolous lawsuits holding up the MVP project have had very real costs. For example, Equitrans’ “all-in” cost to ship an Mcf of gas through the pipeline (when it finally is in-service) has doubled because of the delays. We think Equitrans should sue the litigious enviro groups to recover the escalating cost they will pay. Let’s put the Sierra Club out of business.
We’ve written plenty about Shell’s mighty ethane cracker plant project happening in Beaver County, PA. It is one of the biggest construction projects currently underway in the entire country. When the COVID-19 pandemic hit one year ago, the construction site closed down, going from 8,000 workers to a skeleton crew of 300. The way Shell handled the closure, and handled the subsequent reopening, is worth understanding and studying.
The Federal Energy Regulatory Commission (FERC) is finally making official what has, until now, been unofficial (but enforceable via court orders): State environmental agencies have exactly one year to either grant or reject issuing a Clean Water Act Section (CWA) 401 permit for pipelines (and other federal projects) to cross rivers and streams and wetlands. A final rule is now drafted and 90 days after it’s published in the Federal Register the rule will be in place and enforceable.
Make no mistake–Big Oil companies like Exxon, Chevron, and Shell are not friends of the shale industry. Indeed, these so-called supermajors despise smaller competitors called independents. Which explains why these three companies, along with seven other major oil and gas companies, acted like sycophants in a meeting yesterday, obsequiously bowing before dementia Joe’s attack dog Gina McCarthy in pledging their undying support of a carbon tax that they foolishly believe won’t somehow end up shutting down their own companies. For big, important people, the CEOs of these companies sure can be stupid.
Just two of the three M-U states received permits to drill new shale wells last week. Pennsylvania received only 3 new permits for two drillers. One of the two is a completely new company for us! Ohio received 0 new permits last week. And West Virginia received 7 new permits, all for the same company in the same county on the same well pad as all of the permits issued two weeks ago.
All the wheels have officially come off the cart for a proposed $346 million pipeline project in northeastern Virginia called the Header Improvement Project. Virginia Natural Gas (VNG) filed a plan last December to build the Header Improvement Project, 24 miles of new pipeline and two new compressor stations (expanding a third compressor) connecting to the mighty Transco pipeline system to flow Marcellus/Utica gas to the northeast Virginia region (see 
In February West Virginia Gov. Jim Justice announced a plan to eliminate the state’s personal income tax. Who wouldn’t love that idea? But in order to replace the $2.1 billion received annually from the personal income tax, Justice would raise other taxes, including a tiered system that potentially raises the state’s oil and gas severance tax (see