Cuomo Forces National Grid to Pay $21M for Gas Pipe Violations
In yet another pathetic attempt to deflect attention away from his own crimes while in office (groping women, forcing nursing homes to accept COVID patients who infected other residents who died), Andrew Cuomo’s office yesterday announced a “settlement” with utility company National Grid (provides natural gas to half of New York City and all of Long Island). Cuomo’s office claims National Grid failed to protect underground gas pipelines from corrosion, which translates into $21 million of fines disappearing into the black hole of the Cuomo administration.
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Feedgas, the natural gas flowing to U.S. LNG export terminals that gets liquefied and shipped to foreign destinations, hit a new all-time high on Wednesday: 11.65 billion cubic feet (Bcf) in a single day. All six major U.S. LNG export facilities currently in operation contributed to the surge, including Cove Point in Maryland and Elba Island in Georgia (both export 100% Marcellus/Utica molecules). M-U molecules are also exported from most of the other four active LNG export facilities, including large amounts of our molecules flowing to Cheniere Energy’s Sabine Pass facility.
MARCELLUS/UTICA REGION: 35 PA Democrats urge Gov. Wolf to investigate health impacts associated with natural gas fracking; FirstEnergy and Carl Icahn reach a deal for board seats and influence; NATIONAL: Biden’s ‘backdoor’ climate plan; Henry Hub forwards hit 2-month low as summer supply outlook turns bearish; States sue Biden in bid to revive Keystone XL pipeline; Here’s why Warren Buffett is betting billions on natural gas.
In February 2020, Pennsylvania Dept. of Environmental Protection (DEP) Secretary Pat McDonnell sent a letter to the federal Pipeline and Hazardous Materials Safety Administration (PHMSA). McDonnell’s letter alleges Shell’s 97-mile, two-legged Falcon pipeline system that will carry ethane to the mighty Shell cracker plant now under construction in Beaver County, PA, “may have been conÂstructed with deÂfecÂtive corÂroÂsion coatÂing proÂtecÂtion.” It’s an explosive charge just coming to light now, more than a year later.
Williams, via its wholly-owned subsidiary Transcontinental Gas Pipe Line (Transco), has filed a lawsuit against Mountain Valley Pipeline (a competitor) over MVP’s plan to extend the pipeline an extra 75 miles from southern Virginia into North Carolina. Williams claims some of the land MVP wants to use under eminent domain crosses into Transco’s easements and building MVP so close to Transco may damage Transco’s pipeline and the cathodic anti-corrosion system that protects it.
A third Pennsylvania township, Clara Township in Potter County, is about to be lured onto the same litigation rocks by the siren song of the uber-radical Community Environmental Legal Defense Fund (CELDF) as two other towns, by adopting an illegal “home rule” law in an attempt to block a new wastewater injection well. CELDF lured two other towns onto the same litigation rocks, where they’ve crashed–Grant Township in Indiana County and Highland Township in Elk County. Both towns were sued by the state Dept. of Environmental Protection (DEP) when they tried to block injection wells using the same home rule tactic (see 
Earlier this week the Ohio Supreme Court expanded on one of its prior rulings concerning the Ohio Marketable Title Act (MTA) to try and make things a little bit clearer concerning previously severed mineral rights (severed from surface rights). What is at stake in the MTA is whether surface rights owners can regain possession of mineral rights by using the MTA–at least in some cases. Indeed they can, but certain rules must be obeyed.
New Fortress Energy (NFE), the brainchild of billionaire Wes Edens, came out of nowhere just a few years ago to become one of the world’s leading natural gas infrastructure and logistics operators, delivering natural gas (typically LNG) to customers in a number of other countries. NFE also builds and operates gas-fired electric plants in some of those countries. They own most of the supply chain, from liquefying the gas to shipping it, unloading it, and using it in plants built and operated by the company. We track NFE for their plan to build an LNG liquefaction plant in Bradford County, PA (northeastern part of the state). What’s happening with that project?
Just at the time U.S. exports of LNG are once again ramping up, along comes a “bipartisan” group of legislators proposing a bill to require some LNG exports (as well as some petroleum exports) to be transported from our shores on U.S.-built and U.S.-flagged LNG carriers. The problem is, none currently exist! This is yet another massive screwup coming from some who mean well, and some who don’t. Some of the people backing the bill, like hapless Sen. Bob Casey (from Pennsylvania) likely don’t know this bill will destroy exports of Marcellus/Utica molecules. He’s just too dull to comprehend it. But others, we suspect, know exactly what this bill would do.
All three M-U states received permits to drill new shale wells last week. Pennsylvania received 18 new permits for three drillers, all of them in the western part of the state. Ohio received 5 new permits for two different drillers. And West Virginia received 5 new permits, all for the same company in the same county on the same well pad.