A Short History Lesson on Why NY’s Pipeline Bans are Illegal
On multiple occasions we have outlined the reasons why federal agencies like the Federal Energy Regulatory Commission (FERC) exist–in order to prevent individual states from harming their neighbors economically. An individual state can’t block a new interstate highway, or the trucks and cars that travel it, from entering their state. It’s the same for power transmission lines and for pipelines. Yet New York Gov. Andrew Cuomo is violating that law by rejecting interstate pipelines.
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One of the few “green” advocates we respect is Michael Shellenberger, a Time Magazine “Hero of the Environment,” Green Book Award Winner, and president of Environmental Progress, a research and policy organization. His articles often appear on the Forbes website (we’ve linked to many of them in our “Best of the Rest” roundup). Shellenberger, one of the few environmentalists to endorse and defend fracking, recently penned an article that accuses the fracking/shale industry of a double standard when it comes to their opposition to bailing out nuclear plants with government subsidies.
MARCELLUS/UTICA REGION: Shut down Mariner East II, for good; NYC Comptroller Scott Stringer calls on Con Ed to prove NESE is necessary; OTHER U.S. REGIONS: Pipeline protesters could face 10 years in prison under bill OK’d by Texas House; Venture Global LNG achieves regulatory milestone for Plaquemines LNG, Delta LNG export project; NJ gets ready to commit energy suicide; NATIONAL: 2020 Dems take extreme positions on oil & gas development; Flex LNG to list shares on New York Stock Exchange; LaFleur says climate split is harming FERC’s work; Will Chevron come over the top to buy Anadarko?; Chevron should walk away from Anadarko deal; Activist investor urges Carrizo Oil & Gas to sell; INTERNATIONAL: ‘Freedom gas’: US opens LNG floodgates to Europe.
The Pennsylvania Dept. of Environmental Protection (DEP) has just fined EQT $330,775 for erosion and sedimentation violations at two well sites in Forward Township, Allegheny County, PA. Water with sediment in it leaked from the well sites in early 2018, which sometimes happens. The reason for the stiff fine is that EQT failed to notify the DEP when it happened. If the DEP finds out via its own inspections first, the cost goes way up.
On April 25 the Rice brothers (Toby and Derek) sued EQT alleging the company is trying to confuse shareholders by requiring some of the board candidates the Rice boys are proposing get commingled with EQT’s own slate of candidates (see 
In October 2017, MDN told you a second Marcellus gas-fired electric generating plant is planned for Greene County, PA (see 
We have news of a new, small pipeline project with the potential to carry more PA Marcellus natural gas to several locations in Delaware and Maryland. Eastern Shore Natural Gas Company (ESNG), a subsidiary company of Chesapeake Utilities Corporation, filed a request with the Federal Energy Regulatory Commission (FERC) in Sept. 2018 to build 19+ miles of new pipeline and new meter and delivery stations in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland. FERC has just issued a positive environmental assessment (EA) for the project.
The battle to buy Anadarko Petroleum by Chevron and Occidental Petroleum (Oxy) has taken an interesting turn. Over the weekend Oxy revised its offer. It will still pay Anadarko shareholders $57 billion (as before), but the offer was revised to dial up the amount of cash and dial down the amount of stock swaps. Never hurts to use cash as a sweetener. The new offer did the trick. Although Anadarko previously signed an agreement to sell itself to Chevron, Anadarko announced yesterday they are leaving Chevron at the altar and riding off into the sunset to elope with Oxy.
Last Friday the Federal Energy Regulatory Commission (FERC) issued a final approval for Williams’ Northeast Supply Enhancement (NESE) pipeline project by a vote of 3-1 (full copy below). The only remaining regulatory hurdles are for both New York State and New Jersey to issue federal Clean Water Act 401 certificates to allow the project to cross bodies of water in their respective territorial waters. All eyes are now on NY Gov. Andrew Cuomo and what he will do. Will he approve the project, benefiting New York City and Long Island with much-needed gas? Or will he veto the project, harming millions of NY residents, simply to placate a small group of very vocal radical leftists who pretend to care about the environment? He has until May 16 to decide.
“In our exploration and production business, even though we achieved our highest ever average daily production rate this past quarter, we were expecting more. It’s a slight disappointment that we modestly lowered the midpoint of our production guidance to the low end of the range that we established last August.” So said National Fuel Gas Company (NFG) CEO Ron Tanski in talking about NFG’s Seneca Resources shale drilling subsidiary on a conference call last Friday.
Gulfport Energy, one of the biggest drillers in the Ohio Utica Shale (210,000 acres) with record production in the Utica last year, announced last week (as part of its first quarter update) it has sold a “small footprint” of Marcellus drilling rights on some of their Utica acreage in southeastern Ohio for $30 million. Gulfport concentrates its drilling in the Ohio Utica and the Oklahoma SCOOP plays. Piecing together the company’s plans for this year, we’re calling 2019 the “Year of the DUC” for Gulfport.
Dominion Energy, a huge (one of the biggest) gas and electric utilities (and power generator) in the U.S., as well as a major pipeline company, issued its first quarter 2019 update last week. Our main concern and focus with the update is what Dominion said about the 600-mile, $7-$7.5 billion Atlantic Coast Pipeline (ACP) project. Given the ongoing lawsuits by radical green groups that have delayed the project and skyrocketed costs, Dominion CEO Tom Farrell said “it’s been a very frustrating process,” but “we are winding our way through it…and we’re making progress.” Farrell still plans to restart construction of ACP (currently stopped thanks to lawsuits) in the third quarter of this year.
This is a glittering example of how people who fancy themselves as “smart” are actually quite stupid. The so-called political leaders of Philadelphia are commissioning a study (paid for by Mike Bloomberg) on how the city can convert Philadelphia Gas Works, the nation’s largest municipal-owned utility company, into dumping natgas. Because, ya know, global warming. It’s bizarre (and breath-taking) to watch just how stupid people can get.