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    Lobbyists Tell PA Lawmakers Nukes Safer than Gas-Fired Plants

    Sometimes you can’t convey it all in a headline that should be 65 characters or less (in order to make the Google gods happy). In this case, the longer headline we would have used is this: “Lobbyists tell Pennsylvania lawmakers that nuclear powered electric plants are safer from cyber and physical attack than natural gas-fired plants (and therefore should be preferred to gas-fired plants).” That was the upshot of a hearing held yesterday by the PA House-Senate Nuclear Caucus, a hearing in which nuclear energy lobbyists claimed “no mandatory physical or cyber security standards exist for natural gas systems” in contrast to the nuclear energy industry that has to meet “demanding security requirements.” We should hope so! We hope that nuke facilities are more strictly regulated than natural gas facilities. If a nuke goes offline/has an accident/is overtaken in a physical attack, thousands of people die and it’s an environmental disaster. If a natgas-fired plant goes offline, the lights go out for a while. Big difference, we would say…
    Read More “Lobbyists Tell PA Lawmakers Nukes Safer than Gas-Fired Plants”

  • Energy Stories of Interest: Wed, Sep 26, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA General Assembly advances bill on conventional drilling; Natural gas company helps flood victims; NEXUS revenue questions: Sen. Gardner to meet with Woodmore board; State PUC urges Philly to get rid of ‘duplicative’ gas commission; Shell’s Pennsylvania cracker on schedule, budget; Environmentalists causing delays for midstream pipeline companies; For environmentalists fighting natural gas, safety issue comes to the forefront; Natural gas surges past $3 as traders focus on low storage levels; Houston energy co.’s unsolicited acquisition offer rejected; LNG shipping rates spike, no end in sight; OPEC sees competition with U.S. shale oil subsiding after 2023; Oil giants use size to overcome fracking challenges.
    Read More “Energy Stories of Interest: Wed, Sep 26, 2018”

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    Dominion Sells 2 Gas-Fired Plants; Blue Racer Midstream For Sale

    Dominion Energy has found a buyer for two of its natural gas-fired electric generating plants, one located in Pennsylvania, the other in Rhode Island. In July MDN told you that Dominion was shopping the two plants, hoping to raise $1+ billion (see Dominion Looking to Sell Gas-Fired Power Plants in PA, RI). One plant, the Fairless Power Station, is located in Bucks County, PA near Philadelphia. The other, Manchester Street Power Station, is located in the People’s Republic of Rhode Island. So why would Dominion, a company that really digs natgas, want to dump two of its natgas power generating plants situated in large, urban areas? In a word, regulation, or rather lack of it. Both of the plants Dominion wants to dump are “merchant plants”–meaning they sell electricity on the open market, at market rates. Regulated plants, on the other hand, have their prices determined by quasi-governmental agencies. Selling electric that’s regulated means the potential upside is limited, but it also means you are guaranteed a certain price and can count on receiving that price year in and year out. In the lingo of high finance, being regulated “derisks” a company–makes revenue streams predictable, which investors like. So Dominion is on a mission to (a) pay down debt by selling assets like these two merchant power plants, and (b) provide more revenue certainty for investors. And it looks like they achieved their goal, selling the two plants for $1.23 billion to Starwood Energy. In the same Dominion announcement about the Starwood sale, the company said they will continue to shop their 50% ownership stake in Blue Racer Midstream, which is the first we’ve heard that Dominion is looking to unload their share. Dominion says there is “strong interest” in buying it…
    Read More “Dominion Sells 2 Gas-Fired Plants; Blue Racer Midstream For Sale”

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    How Much Does it Cost to Build a Pipeline in the Northeast?

    The short answer to the question posed in our headline is, “Too much.” The reason it’s costing too much is because of a blizzard of frivolous lawsuits launched by anti-fossil fuel groups, funded with money from big foundations (see Big Green Exposed: List of Liberal Foundations Donating $3.7B and New Study, Video Exposes 19 Foundations Funding Climate Hoax), and because of the heavy hand of government regulation. Those two things together–lawsuits and punitive regulations–drive the cost of pipeline construction in the Marcellus/Utica region to heights where it may not make sense, economically, to build new projects. How much per mile does it cost to build a major pipeline that flows 1 billion cubic feet per day (Bcf/d) or more of low-carbon, clean-burning Marcellus/Utica shale gas? These days, it costs anywhere between $2.9 million to a whopping $13 million *per mile* to build a new pipeline in the northeast. Yeah, way too much. How much did Atlantic Sunrise cost Williams to build per mile? And how much is Atlantic Coast Pipeline costing Dominion Energy to build? We’ve got the numbers below…
    Read More “How Much Does it Cost to Build a Pipeline in the Northeast?”

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    Diversified’s Schedule to Plug Abandoned PA Wells in Dispute

    Diversified Gas & Oil has been on a mission to buy as many non-shale (conventional) oil and gas wells as it can in the Appalachian Basin. In June, MDN brought you the exclusive news that Diversified had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see Diversified Gas & Oil Adds to Conventional Assets in KY, VA, WV). The sale included nearly 12,000 conventional wells with 200 million cubic feet per day of natural gas production, 2.5 million acres of leases, and some 6,400 miles of gathering pipelines. Along with all those wells comes a number of wells that don’t produce any more and need to be plugged (see PA DEP Orders CNX, XTO & Diversified to Plug 1,058 Abandoned Wells). Plugging wells is not cheap, although Diversified seems to have found a way to do it cheaper than other companies like EQT can do it. Still, Diversified is faced with plugging thousands of wells. You don’t do it all at once–you have tackle it well by well, year by year. The Pennsylvania Dept. of Environmental Protection told Diversified it wants 1,000 of its nonproducing wells plugged in the next five years. Diversified countered it would like to plug 2,000 wells over the next 20 years. Diversified’s strategy, according to a Pittsburgh Post-Gazette article, is to push off plugging as long as possible…
    Read More “Diversified’s Schedule to Plug Abandoned PA Wells in Dispute”

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    Allegheny LibDem Wants to Throttle Fracking with Lease Database

    Why can’t liberal Democrats, for once, just be honest about their intentions and motivations? A liberal Democrat who sits on the Allegheny County (PA) Council, Anita Prizio, is floating a plan that requires drillers to provide information on their oil and gas leases (shale AND conventional) in digital format to the county recorder of deeds. The supposed aim is to create an easy-to-access database/registry showing which land has been leased and which has not. We won’t lie (unlike lib Dems)–such a registry would be worth its weight in gold to many people, including landowners, other drillers/competitors, but most of all to antis who want to make trouble. Why do we say Ms. Prizio has ill-intent, even though she claims she has no ulterior, anti-drilling motive? Because she’s floating this plan for a lease registry at the prompting of radical leftist and anti-driller Doug Shields, from the odious group Food & Water Watch. Before joining FWW, Shields was himself a Pittsburgh Councilman for 20 years–lobbying for a total frack ban on more than one occasion (see Pittsburgh Councilman Doug Shields Lobbies to Get Drilling Ban Added to City’s Charter). Prizio’s connection to Shields is the tip-off that this is not some innocent proposal, but instead yet another case of collusion between lib Dems and Big Green. Follow the money…
    Read More “Allegheny LibDem Wants to Throttle Fracking with Lease Database”

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    Lawyers Make Out Like Bandits in PA O&G Overtime Case

    We have a lot of lawyer friends, and lot of loyal MDN readers are lawyers. With all due respect to our lawyer friends and readers, we are outraged at the amount of money awarded to the attorneys in a recent oil and gas case in PA. Let’s back up. This post is primarily a warning to drillers and their contractors to play it straight when it comes to classifying who is exempt from overtime and who is not. You know who’s really “hourly” and who isn’t, and if you screw that up, it will come back to bite you–in a major way. A group of oilfield service workers in western PA were, according to the workers, misclassified as exempt from overtime when working over 40 hours per week. They sued. The details are below, but the short version is that the eight employees who stuck it out until the bitter end won their case. Collectively they got just over $1 million in back wages and “damages.” However (and here’s our outrage), the lawyers got a “reasonable fee” of $2.3 million! Really? It’s “reasonable” that the lawyers got more than twice what the employees got?…
    Read More “Lawyers Make Out Like Bandits in PA O&G Overtime Case”

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    New Williams Board Appointment Raises Ethics Question

    On July 31 midstream giant Williams announced it had added a new member to its board of directors, Vicki Fuller. We didn’t think much of it at the time. We included a mention in our “best of the rest” section the following day (see Energy Stories of Interest: Wed, Aug 1, 2018). Fuller is an accomplished woman–very smart. Prior to assuming her part-time role at Williams (for a cool $275,000 per year), she was the chief investment officer of the New York State Common Retirement Fund. That is, she decided how and where to invest the $207 billion worth of investments in the pension fund, put there by New York State workers (teachers and others), used to cover their retirement pensions. That’s a lot of responsibility riding on one person’s shoulders. And therein is the rub. Anti fossil fuel radicals have been pushing New York State Comptroller Thomas DiNapoli (a wildly left liberal himself) and Fuller (appointed by DiNapoli) to divest the Common Retirement Fund from fossil fuel companies–companies like Williams. To his credit, DiNapoli has resisted the political pressure to divest, realizing that millions of pensioners’ investments would fall by billions of dollars if that happens. And to her credit, Fuller did not cave to the pressure either. Liberal media (PBS) is now going after Fuller and her appointment to the Williams board, implying it’s some sort of quid pro quo–that Fuller got the job and a big salary for doing part-time work, in return for not divesting the pension fund from Williams stocks and bonds. Which is a stretch. A big stretch. However, the timing of her departure as CIO of the pension fund and her appointment to the Williams board (both in the same week) doesn’t look good…
    Read More “New Williams Board Appointment Raises Ethics Question”

  • Energy Stories of Interest: Tue, Sep 25, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Infinity and beyond! Activist denies high costs of Youngstown anti-fracking measure; Upshur County pipeline site providing jobs, boost to local economy; Group from Colombia tours sites in Beaver County; No link between Barnett Shale natural gas production and methane in groundwater, studies conclude; Republicans push back against states seen as too pro-regulation; Oil CEO and Trump donor Dan Eberhart says the shale boom gives Trump an edge; Crude oil was the largest U.S. petroleum export in the first half of 2018; E&Ps grind out production growth through incremental capex increases; Predictions of early ‘peak oil’ demand don’t pass the Goldilocks test; McIntyre absent from FERC meeting as chief of staff controversy swirls; Russian gas and the case for sanctions; Shell CEO considers new natural-gas bet; Big Oil pledges to slash potent greenhouse gas emission.
    Read More “Energy Stories of Interest: Tue, Sep 25, 2018”

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    Columbia Gas Appoints Ret. Navy Captain to Oversee Disaster Recovery

    More coverage in our ongoing coverage of the aftermath resulting from a chain-reaction of explosions in local natural gas delivery pipelines about 25 miles 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 without natural gas–for up to two months. Can you imagine not being able to cook meals, or heat your home, because of no natural gas? What will those people do in the meantime? Columbia Gas (part of NiSource), whose pipelines are the ones that exploded, began distributing some 7,000 electric hot plates over the weekend. Gov. Charlie Baker mobilized the Massachusetts National Guard to help. Since Gov. Baker also requested an “outside contractor” to take charge of the situation, Columbia announced they have appointed retired Navy Captain Joe Albanese, founder and CEO of Commodore Builders (a construction management firm) to become the Chief Recovery Officer in attempting to put Humpty Dumpty back together again. Assisting Captain Albanese will be retired Rear Admiral Richard Cellon, president of Cellon and Associates. Cellon has loads of experience in construction in the Middle East–helping war-torn areas recover. It’s already getting cold in New England, so beginning this week Columbia has a hoard of electricians, plumbers, and “assessors” working to assess and install some 24,000 space heaters in homes. It’s no small feat. Local fire departments are involved to ensure the space heaters don’t create a fire hazard…
    Read More “Columbia Gas Appoints Ret. Navy Captain to Oversee Disaster Recovery”

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    Did Atlantic Sunrise Pipe Contribute to Mobile Home Park Flood?

    Sometime this week we expect to blow the trumpets and wave the flags that finally (finally!) the Atlantic Sunrise Pipeline in Pennsylvania has begun flowing Marcellus gas south. Typically pipelines like Williams’ Atlantic Sunrise do a good job of working with landowners and municipalities to address concerns and tweak the route. We’ve heard some legitimate complaints over the past few years when a pipeline company seemed to turn a deaf ear to concerns by landowners. But usually those complaints were from other builders, not Williams. This time we have a story to share that (for us) is atypical. When building Atlantic Sunrise in Lancaster County, Williams said it was necessary to “temporarily” remove a stormwater basin (small pond to catch runoff) near two dozen mobile homes in Rapho Township. Over the objections of the local town, Williams went ahead (with state Dept. of Environmental Protection blessing) and completely removed the stormwater basin. Then a series of unfortunate events happened. Some 10 inches of rain fell–quite unheard of, supposedly a 1,000-year event. And the mobile home park got flooded. Would the nearby stormwater basin have helped prevent the flood if it were still there? Maybe, but (according to town officials), probably not. Not with 10 inches of rain. Still, it does raise a question. Was the flooding of the park made worse because the basin was gone? And if so, how much worse?…
    Read More “Did Atlantic Sunrise Pipe Contribute to Mobile Home Park Flood?”

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    3 PA Senators Seek to Join Lawsuit Against DRBC Frack Ban

    A bit of encouraging news to share with respect to a lawsuit against the Delaware River Basin Commission (DRBC) and their attempt to ban fracking and shale drilling in the basin. In May 2016, a landowner in Wayne County, PA filed a lawsuit against the DRBC asking a judge to declare that the DRBC does not have jurisdiction to prevent construction of a natural gas well (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). The Wayne landowner argued in U.S. District Court that oil and gas wells, under the DRBC’s charter, do not constitute a “project” that is regulated by the DRBC and therefore are exempt from oversight from the DRBC. The way the DRBC so broadly reinterprets the word “project” in the original charter, it allows them to regulate anything and everything. The case was eventually appealed to the U.S. District Court of Appeals for the Third Circuit. In July that court sent the case back down to U.S. District Court with orders to more fully consider what is, and what is not, meant by the word “project” in the original DRBC charter (see Major Federal Court Decision Opens Door to Stop DRBC Frack Ban). It was a MAJOR victory for the landowner, and a MAJOR defeat of the DRBC. No, the case isn’t over yet, but now the full case will get heard. The legal arguments in the case clearly support the landowner. The new news is that three prominent Pennsylvania State Senators, Lisa Baker, Gene Yaw and Senate President Pro Tempore Joe Scarnati, have all filed to join the lawsuit as “intervenors” on behalf of the Wayne landowner. They want to add their two cents, on behalf of the Commonwealth of PA, to influence the court to rule in favor of the landowner (overruling the DRBC). What’s noteworthy about this development is that long-time senators typically don’t make risky political moves. The senators are either confident that the landowner will win the case, or if he loses, that public sentiment is with the landowner (a political win). The senators’ participation has the DRBC even more nervous, as evidenced by statements from their mouthpiece THE Delaware Riverkeeper’s Maya van Rossum…
    Read More “3 PA Senators Seek to Join Lawsuit Against DRBC Frack Ban”

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    XNG Virtual Pipe Facility in NH Hits Roadblock re Town Zoning

    NG Advantage, a pioneer in “virtual pipeline” trucked CNG service, tried to build a compressor station/trucking hub in a Binghamton, NY suburb, but that effort failed earlier this year due to local opposition (see NG Advantage Virtual Pipeline Project Near Binghamton is Dead). Let’s be honest. Nobody wants an endless stream of trucks driving through their neighborhood, especially a populated neighborhood. That was the issue in Fenton (and neighboring Hillcrest) where NG planned to build their facility. A similar situation has sprouted up in New Hampshire. Different company, XNG (Xpress Natural Gas), but similar in that a local town, Chesterfield, NH, is opposing a plan by XNG to locate a truck terminal in the town. The town zoning board refused to grant a special exemption for the “short-term-parking” terminal. XNG sued in county court and the judge ordered the zoning board to rehear the matter. The board issued a second rejection and the matter is back in court, which you can read about below. The point of our post is to tackle the “not-in-my-back-yard” (NIMBY) issue. These types of CNG/trucking facilities are still relatively new. They are needed and no doubt more will get built. And, these types of facilities face increasing NIMBYism. It’s a real concern. The philosophy of no pipelines, and now a philosophy of no natural gas deliveries via truck, is a societal issue we must deal with. Eliminating natural gas in a geography spells loss of companies and loss of jobs. It also spells super-high prices for electricity. Somehow, for the good of society, we must negotiate through these issues. Can reasonable people reach a reasonable compromise? Are there any reasonable people left?…
    Read More “XNG Virtual Pipe Facility in NH Hits Roadblock re Town Zoning”

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    Murray Energy Continues to Block Gas-Fired Plants in WV

    In July MDN said it’s time to reveal who is blocking new gas-fired electric plants in West Virginia (see OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants). WV has a long, proud history as a coal producer. According to West Virginia Coal Association, some 95% of the electricity produced and used in the Mountain State comes from coal-fired plants. However, natural gas burns cleaner than coal, and frankly, natgas is now cheaper than coal. Yet WV still has not permitted or allowed a single new gas-fired plant to be constructed. Last year then-WV Sec. of Commerce Woody Thrasher observed that Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, while WV has built NONE. Why not? Because of Robert Murray, CEO and founder of Murray Energy, one of the largest independent coal mine operators in the U.S. Bob Murray is using a front organization called Ohio Valley Jobs Alliance (OVJA) to file a blizzard of frivolous lawsuits that have kept all new gas-fired plant projects from being built in WV. Three such plants have been on the books, planned, for years. The first plant may begin construction this year (see WV Close to Starting Construction on First Natgas-Fired Plant). That is, it will start construction if the project sponsors can beat back yet another challenge by the Murray-backed OVJA to the issuance of an air permit. The thing that frosts us is that Murray Energy continues to deny that it is the one funding/behind OVJA…
    Read More “Murray Energy Continues to Block Gas-Fired Plants in WV”

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    Virginia Tech Radical Prof Gets Light Sentence for Pipeline Crime

    It doesn’t help the cause of justice to let a repeat offender who breaks the law in order to protest pipeline projects, off easy. That’s what happened last week in Virginia when a U.S. Magistrate Judge essentially slapped the wrist of Virginia Tech radical professor Emily Satterwhite following yet another violation in her protest of Mountain Valley Pipeline (MVP). Police had taped a “no trespass” area and Satterwhite brazenly violated it, using the excuse she was taking pictures of other nutjob protesters who intentionally ran into the construction zone. OK, so she crossed a taped line. That’s no big deal is it? Thing is, she previously chained herself to a bulldozer, delaying construction of MVP for a whole day. The tape is up for a reason–to protect bystanders and workers. She violated it. She got off easy. The charge will be dropped if she doesn’t repeat offend yet again (fat chance of that happening)…
    Read More “Virginia Tech Radical Prof Gets Light Sentence for Pipeline Crime”