NJ Towns Win Delay for Phase 2 of Garden State Expansion Pipe
You win some, you lose some. Today we brought you the news that THE Delaware Riverkeeper and other radical groups lost their case opposing the Atlantic Sunrise Pipeline project (see Riverkeeper Lawsuit Against Atlantic Sunrise Tossed by Fed Court). However, the same court, the U.S. Court of Appeals for the Third Circuit, went the other way on a different Williams project. Last August two New Jersey towns sued in federal court, seeking to overturn a decision by the Federal Energy Regulatory Commission (FERC) to approve Williams’ Transco Garden State Expansion pipeline project (see FERC Fights NJ Town Effort to Decertify Garden State Expansion). The project was created to address supply disruptions following Superstorm Sandy in 2012. By upgrading compressor stations and adding a new meter station, the Garden State Expansion project will supply an extra 180 million cubic feet per day (MMcf/d) of natural gas to “a new delivery point on Transco’s existing Trenton Woodbury Lateral pipeline.” Two towns in Burlington County (Bordentown and Chesterfield) where some of the work would be done for Phase 2 of the project filed a lawsuit asking the Third Circuit to overturn FERC’s previous decision to allow the project. They also asked that permits issued by the New Jersey Dept. of Environmental Protection (NJDEP) be revoked. Yesterday the court ruled that NJDEP erred by issuing permits for the project. However, the court ruled that the towns’ challenges to FERC’s order allowing the project lack merit (and were dismissed). So, a partial victory–but still more delays because of the ruling re NJDEP…
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Some exciting news to share. Southwestern Energy, headquartered in Texas, has cut a deal to sell all of their Fayetteville Shale (Arkansas) assets to Flywheel Energy for $1.865 billion in cash. The sale makes Southwestern a pure play, 100% focused driller on the Marcellus/Utica region (i.e. Appalachia). What will Southwestern do with an extra $1.865 billion? According to their announcement: (1) Spend $900 million of it on retiring IOUs (“notes”) previously issued. That is, debt retirement. (2) Buy back up to $200 million in outstanding shares of stock. (3) Spend $600 million of it over the next two years (2019 & 2020) on more Marcellus/Utica drilling. But not just any M-U drilling. Southwestern owns acreage in both northeastern PA and the northern panhandle of WV (with a some acreage in Washington County, PA). According to Southwestern’s announcement, the extra $600 million will go to drilling in the company’s “liquids-rich Appalachia assets.” Northeastern PA is dry dry dry–no liquids. WV landowners brace yourselves–Southwestern will soon bring an extra $600 million (over half a billion dollars) worth of drilling to your area. If you’re signed with Southwestern and haven’t yet seen drilling, you now stand a much better chance! Here’s the exciting news, along with extra resources we’ve located to better help you understand the news…
We finally come down to the final two lateral pipelines for Rover. The Federal Energy Regulatory Commission (FERC) played a game of hardball with Energy Transfer (ET) over the Rover Pipeline. For months FERC refused to allow four Rover laterals–feeder pipelines to shuttle gas from where it’s produced into the main Rover pipeline–to start up (see 
It’s an amicable divorce, the split of EQT into upstream (drilling) and midstream (pipelines). But it’s still a divorce, and the parents have to decide which kids will go or stay with which company. The “kids” in this case are the top managers, the executives. And we have the list. After EQT announced its plan to buy/merge in Rice Energy last year, the company got pushback from a couple of so-called activist investors (i.e. corporate raiders). One raider, Jana Partners, tried its best to stop the EQT/Rice deal outright (see 
In early 2013, the Proctor & Gamble manufacturing plant in Wyoming County (northeastern PA) began generating 100% of its own energy needs thanks to the Marcellus Shale beneath plant property (see 
An intriguing concept: What if you could generate your own electricity for your own home–without big, ugly solar panels plastered on your roof, or without an unsightly (and loud) wind mill stuck in your yard? What if all you need is a natural gas pipeline connected to your home. What’s that? You don’t want to contribute to man-made global warming by *burning* natural gas? No problem. This nifty little invention, called a fuel cell, uses natural gas in a *chemical* reaction to create electricity. These types of fuel cells have been around for a while, but what’s new is that they are now getting good enough to be commercially viable. Peoples Natural Gas, the largest natural gas distribution company in PA, providing natural gas service to approximately 700,000 customers in western PA, West Virginia, and Kentucky, has cut a deal with a Westmoreland County fuel-cell manufacturer to put 100 test systems in customer’s homes to create electricity at home. It’s an experiment. If all goes well, more will be deployed. Remember when cable companies first began offering internet access, then telephone access? Yeah, electric utilities and electric generators might want to look over their shoulder. They may get some serious competition! If natgas fuel cells ever take off for the residential market, demand for natural gas would be ginormous. Hence our interest. Is this technology anywhere near mainstream yet? No. But let’s keep a close eye on this potential new market for Marcellus/Utica gas. It may happen sooner than you think…
If you live in New York State, as MDN editor Jim Willis does, you often shake your head at the stupidity of our political leaders. Especially people like Gov. Andrew Cuomo. How could he, in good conscience, turn against natural gas and block pipelines, electric plants and fracking? Is he obtuse? Is he getting paid-off by someone? There has to be a reason for his obviously irrational behavior. What is that reason? We have, perhaps, a better understanding now. The radical left is well-organized–think Saul Alinksy, Obama and Hillary Clinton’s idol. Taking a chapter from Alinksy’s “Rules for Radicals” book, the green radicals in NY have organized themselves to pressure Cuomo. We’d call it highly organized and well-funded. The radicals have weekly meetings, plan strategy, and motivate groups of blind followers to show up and heckle Cuomo at public events. And guess what? Cuomo caves–every time. Like a house of cards. The radicals have found the magic formula to pressure Cuomo into doing their bidding. Andrew Cuomo is actually weak-willed. He’s a patsy for the green movement because he fears them, fears a public shaming by them. And so they have their way with him–every time. None other than a liberal Gannett reporter has outed Cuomo as a Big Green patsy…
You know, for years we’ve poked fun at green leftists, saying they were raised watching Captain Planet cartoons–and that’s what warped their brains. Little did we know how right we were in our jocularity! Captain Planet was a cartoon created and produced by Ted Turner & Barbara Pyle, airing from 1990-1996. Did you know that there’s now a foundation, endowed with big bucks, called The Captain Planet Foundation? No lie! It was set up in 2001, funded by Turner and other lefty whack jobs. This is what we’re up against folks. The Captain Planet cartoon, brainchild of radical leftist Democrat Ted Turner (Turner Broadcasting), intentionally brainwashed a generation of our children, planting kindergartenish, simpleton ideas into our children’s heads. Unfortunately some of our kids never grew up. Not intellectually. Some of them still harbor childish, immature ideas that corporations are out to “loot and plunder”–there’s a character in CP cartoons called Looten Plunder, no lie. Do you know how silly it looks to support a foundation based on a kid’s cartoon?…
In an act still befuddling for us, West Virginia Gov. Jim Justice fired Commerce Secretary Woody Thrasher in June (see 
The Marcellus and Utica Shale layers in Southwestern Pennsylvania, northern West Virginia and eastern Ohio produce a boatload of NGLs–natural gas liquids. One company had the foresight to plan a strategy to separate, transport and sell those NGLs. That company was MarkWest Energy, now known as MPLX following a purchase by/merger into Marathon Petroleum. MarkWest’s plan is firing on all cylinders. The experts at RBN Energy have analyzed MarkWest’s initial strategy, now largely complete, and their long-term strategy, still in the works, to give us a great snapshot of how NGLs are moving from our region to Midwestern and Canadian markets…
This another one of those high finance thangs we don’t fully understand. Dominion Energy spent $4 billion to build their Cove Point LNG export facility in Lusby, Maryland. Somehow and somewhere they got money to build it–investors perhaps, or maybe Dominion had some cash tucked away under the corporate mattress. Dominion wants to get some of that debt off its books, so it has just structured a three-year loan with 20 lenders for $3 billion, reducing the company’s “parent level debt”–as opposed to child or subsidiary level debt. What it all means, if we’re understanding it correctly, is that Dominion is moving debt from the parent company’s balance sheet to the Cove Point subsidiary company’s balance sheet. Prior to this, Cove Point “owed” the money to Dominion itself (all in the family), and now, instead, the Cove Point subsidiary will owe that money to lenders directly. That’s our take. Hopefully it won’t take long for Cove Point to pay off the debt…