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    DOE Sec. Perry Attends Cove Point LNG Ribbon-Cutting Ceremony

    Yesterday a bunch of dignitaries gathered in Lusby, Maryland to celebrate the launch of Dominion’s Cove Point LNG facility with a ribbon-cutting ceremony. Yes, the facility has been up and running since April (see Cove Point LNG Ships First Marcellus Cargo to Japan). This was a well-deserved, back-slapping soiree, made all the more sweet for the obstacles Dominion had to overcome from antis when building the facility. Joining the celebration were officials from Japan and India (the countries buying all of the gas shipped from Cove Point), along with the top brass from Dominion. Special guest of honor was Dept. of Energy Secretary Rick Perry, there to deliver a message from his boss, Donald Trump. Perry said Trump is, “eager to unleash our bounty to the world” and that’s why President Trump is “so supportive of this infrastructure project right here in Cove Point.” Very very supportive. 😉 Here’s how it went down yesterday on the shore of the beautiful Chesapeake Bay…
    Read More “DOE Sec. Perry Attends Cove Point LNG Ribbon-Cutting Ceremony”

  • Energy Stories of Interest: Fri, Jul 27, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Beaver Community College gets another $1M to help train cracker plant workers; BP pays $10.5B for BHP Billiton’s U.S. shale assets; residents in Virginia worry solar farm will hurt the environment; energy companies (falsely) praise carbon tax bill; acting EPA administrator challenges Big Corn; US natgas storage increases, prices stay the same; new pipeline testing tool from Baker Hughes; heatwave tests the limits of so-called renewables; the regulation that could push oil to $200/barrel; and more!
    Read More “Energy Stories of Interest: Fri, Jul 27, 2018”

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    PA DEP Orders CNX, XTO & Diversified to Plug 1,058 Abandoned Wells

    Yesterday the Pennsylvania Department of Environmental Protection (DEP) issued administrative orders requiring three oil and gas companies–Alliance Petroleum Corporation (a subsidiary of Diversified Gas & Oil), XTO Energy, and CNX Resources–to plug 1,058 abandoned oil and gas wells across Pennsylvania. Alliance has 638 wells, CNX has 327, and XTO has 93. In a quick scan of the list of wells to be plugged, we didn’t spot a single shale well. All 1,058 wells are conventional/vertical wells. So why is this news for MDN? Because all three drillers (but in particular CNX and XTO) drill shale wells, and plugging old conventional wells takes time and money–time and money that could be spent on drilling shale wells. It takes anywhere from $10,000 to $100,000 to plug an abandoned conventional oil/gas well. Most of the wells are located in the southwestern part of the state. CNX responded that in reviewing the list, some 190 of the wells in their list (out of 327) were part of a recent asset sale. Here’s the details on where, and how long these companies have, to plug old/abandoned oil and gas wells…
    Read More “PA DEP Orders CNX, XTO & Diversified to Plug 1,058 Abandoned Wells”

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    Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe

    It’s the end of the road for a highly hypocritical order of nuns in Lancaster, the Adorers of the Blood of Christ, who use natural gas to heat an old folks home they operate, yet are trying to block the Atlantic Sunrise Pipeline from traversing that very same property. The nuns appear to be radical environmentalists. We don’t know how they justify using natural gas yet actively try to block a pipeline that delivers it. Only in the mind of a leftist. The nuns, with the help of local anti group Lancaster Against Pipelines, stuck a garden trellis and a few wooden park benches in the middle of a corn field they own (leased to a local farmer), declaring it a “chapel”–hence our attempt at humor, calling them “Sisters of the Corn.” The sisters then sued to block the pipeline based on religious grounds (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). It was a sham lawsuit from the beginning and the courts saw through it. The case was thrown out by a lower court, and appealed to the U.S. Court of Appeals for the Third District. Yesterday that court tossed the case too. The nuns now say they are “exploring their options” for what to do next. We’d say they’ve run out of options. Upon hearing of the court’s ruling, the radicals at Lancaster Against Pipelines encouraged fellow wackos to continue breaking the law (i.e. “civil” disobedience) in order to protest the pipeline…
    Read More “Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe”

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    FERC Greenlights Atlantic Coast Pipeline Construction in NC

    Despite intense opposition from nutty so-called environmentalists (i.e. fossil fuel haters), the Federal Energy Regulatory Commission issued permission on Tuesday to Dominion Energy to commence construction of the 600-mile, $6 billion Atlantic Coast Pipeline as it passes through North Carolina. Antis like those from the Southern Environmental Law Center are up in arms. Their strategy to stop the project is to attack it in small, specific areas. There is a pending lawsuit against the project using the Endangered Species Act, potentially blocking construction in certain geographies. If that lawsuit goes against the pipeline, it only affects construction in a small area and for a limited time. Yet Southern Environmental Law Center claims that if a pipeline project is stopped at any point along its route, that should trigger stopping the entire project at all points along the route. FERC isn’t buying into the legal bull and has cleared Dominion to start up the bulldozers. This pipeline will get built, despite the best efforts of antis. In fact, Dominion says it will be built and online by late 2019…
    Read More “FERC Greenlights Atlantic Coast Pipeline Construction in NC”

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    DCNR Report: Less Shale Drilling in PA State Forests Due to Ban

    It’s probably self-evident to most people that if you slap a ban on new leasing of state land for shale drilling, as was first done by liberal Democrat Ed Rendell, and later solidified by liberal Democrat Gov. Tom Wolf, it will result in (tada!) less drilling on state land. That’s the conclusion of an updated report just issued by the Dept. of Conservation and Natural Resources (DCNR). The “Shale Gas Monitoring Report” (full copy below) was first published in 2014. An updated second edition of the report was just issued by DCNR. It shows: gas development on state forest lands has “slowed considerably” since 2014; even though roads to interior parts of forests have been improved (paid for by shale drillers), some folks would rather have “pristine” dirt roads full of potholes instead; there has been a growth of “invasive” plants, perhaps carried into forests by hitching a ride on drilling equipment; drilling hasn’t affected the quality of nearby creeks and rivers. Here’s an overview of the report, followed by a copy of the full 202-page report…
    Read More “DCNR Report: Less Shale Drilling in PA State Forests Due to Ban”

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    Ascent’s $1.5B OH Utica Deal Yields $1.4M in Fees for 2 Counties

    In late June Ascent Resources, a company founded by Aubrey McClendon after he left Chesapeake Energy, announced it is buying 113,400 Utica Shale acres along with 93 operating wells located in eastern Ohio for $1.5 billion (see Ascent Resources Spends $1.5 Billion to Buy OH Utica Acreage, Wells). It’s a big deal, making Ascent one of the largest privately owned exploration and production companies in the U.S. It’s also a big deal for the counties where the land is changing hands. A large part of the acreage is located in Jefferson County, with sizable chunks in Belmont, Noble and Harrison counties. Why is it a big deal for the counties? It takes time (and consequently fees) to transfer all those thousands of leases from one owner to another. Counties stand to make a big windfall. For example, in Jefferson County, some $305 million worth of transfers will take place between CNX and Ascent, netting the Jefferson clerk’s office $1.2 million in fee revenue! It is the single largest ownership transfer in Jefferson County history. In neighboring Belmont County (to the south of Jefferson), $58 million worth of transfers are taking place, netting the county $173,000 in transfer fees. No word yet on how much money Noble and Harrison stand to make…
    Read More “Ascent’s $1.5B OH Utica Deal Yields $1.4M in Fees for 2 Counties”

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    Energy & Business Groups Urge Trump to Fill Vacant FERC Seat ASAP

    Yesterday MDN posted a story about our growing grumpiness that Federal Energy Regulatory (FERC) Commissioner Rob Powelson is about to leave FERC to further his own career, jeopardizing a number of important pipeline projects (see FERC Gridlock Coming Thx to Rob Powelson (Selfishly) Leaving). With Powelson gone in mid-August, the Commission will be split 2-2 on approving new pipeline projects. It’s an unfortunate given that the two Democrats on the Commission will vote against all new pipeline projects, claiming mythical man-made global warming as the excuse. Predictable and maddening. But there you go. What is, is. It seems MDN is not the only outpost concerned about the impending gridlock at FERC. A number of energy and business trade groups, led by the Energy Equipment and Infrastructure Alliance (EEIA), drafted and sent a letter to President Trump last week urging the President to nominate a candidate to replace Powelson “at your earliest opportunity.” They point out in the letter there is a serious risk of deadlock with Powelson out of the mix, jeopardizing critical natural gas pipelines, export facilities, and other critical bits of infrastructure. The letter hits all the right notes–jobs, investment, manufacturing…
    Read More “Energy & Business Groups Urge Trump to Fill Vacant FERC Seat ASAP”

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    Forced Rolling Blackouts Come to California – Lack of NatGas

    Although this story concerns California, it is a preview of what’s coming to New England. Because of ongoing record-high heat in Cali, the Los Angeles Department of Water and Power (DWP) is telling residents to either “voluntarily” stop using electricity, or DWP is going to cut electricity to different communities on a rolling blackout basis. The cancer of anti-fossil fuel hatred has more fully metastasized in Cali than elsewhere in the country, and therefore Cali is an instructive case study. California, if it were it’s own country (now there’s a thought!), would be the fifth-largest economy in the world–larger than the United Kingdom, India and Brazil. Cali is the third largest consumer of gasoline and diesel on the planet, behind only China and the United States. And yet Cali persists in blocking new gas-fired electric plants, blocking pipelines, and shutting down existing oil and gas drilling. They are, in a word, insane. And now their insanity is on display for the world to see. Because of the heat wave and lack of natural gas supplies, natgas prices in Cali have zoomed to nearly $40/Mcf (thousand cubic feet). Residents now face either “voluntary” reduction in electric use–or forced blackouts. We take no pleasure (well, maybe a little pleasure) in saying Cali is reaping what it has sown…
    Read More “Forced Rolling Blackouts Come to California – Lack of NatGas”

  • Energy Stories of Interest: Thu, Jul 26, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Shell opening another parking lot for 1,000 cracker workers; CSX fined $2.2M for 2015 WV crude by rail spill; Bloom Energy IPO vs Tesla’s IPO – natgas the key; new pipelines lead to 5 Bcf/d of natgas exports to Mexico for first time; update on MLPs; the Love Boat orders two LNG cruise ships; India amends definition of hydrocarbon to include shale; European Union says it will import more US shale; and more!
    Read More “Energy Stories of Interest: Thu, Jul 26, 2018”

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    Genscape Confirms Atlantic Sunrise Pipe Ready to Flow in August

    Last week MDN brought you the exciting news that Williams says their $3 billion Atlantic Sunrise Pipeline that runs through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County will go online in August (see Williams: Atlantic Sunrise Pipeline Going Online in August). We have no reason to doubt Williams. After all, if they make an announcement like that and then don’t live up to it, there will be PR hell to pay. It’s in their own best interests to tell the truth about these things. Then again, deadlines have been known to slip and companies always like to put the best possible spin on company news–in an effort to boost the stock price for investors. So perhaps it’s good to have an independent, third party come along from time to time to verify claims like those of Williams and Atlantic Sunrise. But how in the world can you verify a claim that a pipeline is almost done and will go online in the next month or so? By using drones and/or airplanes to fly over the entire length of the project, that’s how. And that’s what Genscape, an analytics and real-time data company has done. Their conclusion? Williams is telling the truth–Atlantic Sunrise WILL go online sometime in August…
    Read More “Genscape Confirms Atlantic Sunrise Pipe Ready to Flow in August”

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    Huge Pieces of Hickory Run Power Plant Arrive in Port of Erie

    Calypso Sal – the ship delivering Hickory Run parts at Port of Erie

    In February 2013 MDN told you about a plan to build the Hickory Run Energy Center–a $750 million electric generating plant at a former manufacturing site in New Castle (Lawrence County), PA (see NW PA Town Approves Site for Marcellus-powered Electric Plant). Original plans called for Hickory Run to be online and operating sometime in 2016. That never happened and the project seemed to have died. But then the project got sold by LS Power, the original owner, to a subsidiary of Japan’s second largest corporation, ITOCHU Corporation. And new life was breathed into the project. The initial design called for a 900 megawatt facility, powered by Marcellus gas. More recent plans indicate the facility will be 1,000 megawatts (or 1 gigawatt), enough electricity to power 1 million homes! Ground was broken for Hickory Run last year (see Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?). Fast forward to this year. A massive load of components for the plant arrived by ship at the Port of Erie on Sunday. It is by far the largest ship to dock at the port in the last five years. Aboard the ship are more than 13 million tons of components and parts destined for the plant. Special permits and trucks will be required to get the equipment on location some 100 miles away in New Castle…
    Read More “Huge Pieces of Hickory Run Power Plant Arrive in Port of Erie”

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    Speaker Didn’t Tell Middletown Pipe Antis What They Wanted to Hear

    Anti fossil fuel radicals continue to try and stir up opposition to the Mariner East 2 (ME2) pipeline project near Philadelphia. Local supervisors in Middletown (Delaware County, PA) walk a tightrope between a desire to protect area residents and anti groups fomenting irrational fears. The Board of Supervisors hired a consultant to advise them on potential safety issues with ME1 & 2. Monday night the supervisors held a public meeting to allow residents to hear from and ask questions of the consultant. The consultant, to his credit, maintained his objectivity. He’s not for or against pipelines–he’s looking at safety issues and discussing realistic scenarios. His responses to some of the questions were not what antis in the crowd wanted to hear. They wanted him to feed their fear-mongering (and false) beliefs. The consultant refused to do so. We found one bit of news from the session highly instructive. There is an anti group calling itself Middletown Coalition for Public Safety. The group presents itself as a “nonpartisan grassroots group of parents and residents whose goal is to educate elected officials and the public regarding the risks associated with the proposed Mariner East 2 pipeline.” It is the exact opposite. Rabidly partisan (Democrat). And not composed of residents. The people who belong to the group, at least its leaders, aren’t from Middletown! At the Monday meeting one of their members, Eric Friedman, was not allowed to question the consultant because he doesn’t live in Middletown. What does that tell you about how these “grassroots” groups are operated and funded?…
    Read More “Speaker Didn’t Tell Middletown Pipe Antis What They Wanted to Hear”

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    Nelson County, VA Refuses to Sell Water to Atlantic Coast Pipe

    Talk about obtuse–about cutting off your nose to spite your face. The dunderheads at the Nelson County Service Authority have just voted to turn down $3.5 million of revenue from Dominion Energy’s Atlantic Coast Pipeline (ACP) over the next two years. ACP wanted to buy water from the authority to use in underground horizontal directional drilling for the pipeline as it passes through the region. ACP would have paid half a million dollars for a hookup fee and a rate of 10 cents a gallon for the water. The five dunderheads on the board–three of them brand new in the past month–offered up all sorts of excuses to cover the fact they simply don’t want the pipeline. They don’t want to be seen “supporting” it. Makes for uncomfortable conversations at the local Five & Dime. Frankly, it doesn’t matter. ACP has said they already have an alternative source for the water and will simply truck it in. Congratulations to the Service Authority Board–you just made your community less safe and poorer. Less safe because now water truck after water truck will clog up the highways (running the risk of accidents), and poorer because you turned down $3.5 million you could have used to give a break in water fees to county residents…
    Read More “Nelson County, VA Refuses to Sell Water to Atlantic Coast Pipe”

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    Nova Scotia LNG Export Project Signs Agreement with Labor Unions

    MDN has tracked the progress of an LNG export plant planned for the eastern shore of Nova Scotia, called Bear Head LNG, for the past several years (see our Bear Head LNG stories here). Of all the Canadian LNG export projects, Bear Head appears to have the most momentum. The project has received most of the necessary permits it needs to proceed. An official from the project says it is “shovel-ready” and can begin at any time. However, they aren’t ready to begin just yet. The reason we track the project is because the most probable source of natural gas to feed the plant would come from the Marcellus Shale via the Maritimes & Northeast pipeline, converted to be bidirectional (see FERC Approves Atlantic Bridge Project for New England/Canada). For the first time in nearly a year, we have some new news to report on Bear Head. LNG Limited, the company behind Bear Head, announced this morning it has signed a Memorandum of Agreement (MOA) with two labor union groups to supply skilled workers to build the plant–when it gets built. While a timeline is not given, the announcement says Bear Head will need “several hundred workers” over “the next several years” to build the facility. Which we take as a positive sign that this project is close to starting…
    Read More “Nova Scotia LNG Export Project Signs Agreement with Labor Unions”

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    FERC Gridlock Coming Thx to Rob Powelson (Selfishly) Leaving

    Our sadness that Federal Energy Regulatory Commission (FERC) Commissioner Rob Powelson is leaving is quickly turning to anger–against Powelson. In June we told you that Powelson will be leaving FERC in mid-August (see Sad News: FERC’s Rob Powelson (from PA) Resigns Effective August). Powelson has been a breath of fresh air and a strong proponent for pipelines. He’s a former utility regulator from Pennsylvania. Smart guy. Nice guy. And now, a selfish guy. It’s predictable and unsurprising that the two Democrats on FERC have sold out to radical elements in their own party and now vote against every new pipeline project that comes along, using mythical man-made global warming as the excuse. With Powleson leaving in August, gridlock will ensue. It’s easy to predict a a string of 2-2 decisions coming, which means important projects will not get approved in a timely manner. Powelson is leaving to further his own career. While we can appreciate that, we think there’s a higher calling for Powelson–to stick around and ensure important projects are not delayed by gridlock. Powelson needs to “take one for the team” and put his own ambitions aside for another year or two. If a string of important pipeline projects are delayed because Powelson leaves, he won’t be remembered fondly. “But,” you may ask, “won’t President Trump just quickly replace him?” “Quickly” is the operative word there. The rumor mill is already in overdrive on who Powelson’s replacement will be. However, most experts who watch this space are predicting the earliest Trump will be able to get someone seated at FERC will be in early 2019. And maybe longer. Meanwhile, important pipeline projects will be in limbo. And that makes us grumpy with Mr. Powelson…
    Read More “FERC Gridlock Coming Thx to Rob Powelson (Selfishly) Leaving”