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    Rover Pressuring FERC to Approve Final 2 Laterals ASAP

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    In a respectful, but strongly worded letter to the Federal Energy Regulatory Commission (FERC), Energy Transfer Partners’ Rover Pipeline asks FERC to (our words) get off its rear-end and approve the Burgettstown and Majorsville laterals. The two laterals, or off-shoots of the pipeline system, both reach into western Pennsylvania and are (from what we can tell) the final two pieces of the Rover pipeline that are not yet online. Rover asked FERC to approve the two laterals, along with other portions of the pipeline, by June 1st, in a letter dated May 24th. FERC did approve some items on the list, but not the two laterals (see M-U Gas Now Travels to Dawn Hub in Canada via Rover Pipeline). In a June 21 letter (read it below) Rover then asked FERC to approve the two laterals by June 25, this past Monday. That date came and went with no approvals. Rover said in its letter: “significant volumes of natural gas have been unable to flow on pipeline facilities that have been completed for nearly a month.” You can feel the frustration when reading the letter. So what, exactly, is the holdup anyway?…
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    NY Asks FERC to Hassle AIM Pipeline, Restrict Flows

    Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system designed to carry 342 million cubic feet of natural gas per day to New England states that badly need the gas. On March 3, 2015 the Federal Energy Regulatory Commission (FERC) issued their final approval for the project, allowing it to go forward. Construction began in 2015 and, following extreme opposition from New York State over a small portion of the project, it finally went online in in 2016. New York’s radical, anti-drilling governor, Andy Cuomo, tried to stop the Algonquin using the flimsy excuse that some of the drilling for the pipeline would happen a half mile from a nuclear power plant–a plant that’s shutting down anyway (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). A few weeks after Cuomo requested FERC shut it down, they told him “no”–which was the cue for Big Green groups to file an appeal with the liberal District of Columbia Court of Appeals (see Radical Enviro Groups File Appeal to Stop AIM Pipeline in NY/CT). Didn’t work. New York State’s two radically leftist Democrat Senators, Chuck Schumer and Kirsten Gillibrand, the Senator nobody knows about and nobody cares about, tried to stop it too (see NY’s 2 Radical Senators Call for Halt in Building Algonquin Pipeline). Didn’t work. Now that the pipeline expansion has been up and running safely for more than a year, you’d think they would give up. Nope. Cuomo previously ordered a “safety analysis” of the project, back in 2016. That report was just released (executive summary embedded below) and four state agencies, all under the executive branch umbrella (i.e., under Cuomo’s thumb), jointly wrote a letter to FERC asking FERC to further hassle the AIM project by restricting flows along it and shutting it down when work to decommission the nearby nuke plant begins…
    Read More “NY Asks FERC to Hassle AIM Pipeline, Restrict Flows”

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    Handy List of 48 New/Planned Gas-Fired Plants in PA, Courtesy FWW

    The radicals of Food & Water Watch (FWW), a disgusting organization, have done us all a huge favor! FWW is composed of some of the worst of the worst when it comes to anti-fossil fuel nuttery. They oppose everything, including low-carbon natural gas, if it’s called a fossil fuel. FWW issued a new “report” last week taking aim at the growing number of Marcellus gas-fired electric plants sprouting up around the state, replacing dirtier coal-fired plants. Only in the mind of a demented liberal is coal better for the environment than natgas. But we digress. FWW’s report is called “Pernicious Placement of Pennsylvania Power Plants: Natural Gas-Fired Power Plant Boom Reinforces Environmental Injustice.” Those alliterations are just ingenious, aren’t they? As part of the report, FWW published a comprehensive list of 48 planned, under construction, or recently commissioned gas-fired power plant projects in the Keystone State. Wow! What a great list! We’ve extracted the list itself and shared it below (so you don’t have to endure the full report). The focus of the report is the baseless charge FWW (and others) make that new power plant projects are built in poor, black areas–where the downtrodden can’t fight back against the machine that is Big Oil/Gas. FWW includes a map (see it below) that charts where “communities of color” (meaning concentrations of black people) live in the state, along with dots that show where existing and planned gas-fired plants are located. Take a look at the dots for planned plants. Almost none of them are near “communities of color!” Whoops. Some intern wasn’t paying attention when she drafted the report…
    Read More “Handy List of 48 New/Planned Gas-Fired Plants in PA, Courtesy FWW”

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    Enviro Radicals Target MVP in Va. Following WV Court “Win”

    The lawyers that infest the Sierra Club are still celebrating a temporary court victory last week that essentially stops construction of the Mountain Valley Pipeline (MVP) in West Virginia (see Sierra Club Succeeds in Delaying MVP Project in WV via Court Order). Their strategy was/is to bamboozle a court into stopping construction at stream crossings (hundreds of them) by using a technical loophole that MVP can’t complete required work at four of the crossings within the stated 72 hours, therefore the court needs to reassess the umbrella permit issued for all crossings. So the court is doing that, temporarily suspending work at all 591 streams MVP plans to cross in WV. The Sierra Clubbers think that because they won that temporary court victory in WV, maybe they can get lightening to strike twice, convincing the court to pull the permit in Virginia too…
    Read More “Enviro Radicals Target MVP in Va. Following WV Court “Win””

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    Anti Group Sues WVU to Disclose Details of $83.7B China Deal

    Appalachian Mountain Advocates, a far-left, radical anti-drilling organization that some media outlets refer to as a simple “nonprofit law firm,” has filed a lawsuit against West Virginia University to force the university to hand over privileged and secret communications concerning the deal WV struck with China to invest $83.7 billion in the state, in the shale and petrochemical industries. As you may recall, that deal was announced last November (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). The particulars of the “deal” have never been announced–other than the top line number of $83.7 billion in investments. In fact, the “deal” was called a “memorandum of understanding” (MOU), which we said at the time: “[the deal] signed in China yesterday is a Memorandum Of Understanding (MOU). It’s a handshake–a gentleman’s agreement. And sometimes those agreements disappear. So this is far from a done deal.” In early December, following calls to disclose the deal, WV Gov. Jim Justice said the specifics are confidential (see WV Gov Justice Says China Investment Specifics are “Confidential”). So now, here comes a Big Green group trawling for trash–attempting to use (abuse) anything they can to make trouble for the shale industry. They hope if they can get their hot red hands on emails to and from the Red Chinese, they can fabricate a mountain out of a mole hill…
    Read More “Anti Group Sues WVU to Disclose Details of $83.7B China Deal”

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    DOE Publishes Updated NGL Primer for Marcellus/Utica

    Last December the Trump Dept. of Energy published a 45-page report called, “Natural Gas Liquids Primer: With a Focus on the Appalachian Region” (see DOE Publishes NGL Primer for Marcellus/Utica, Pushes NGL Storage). The DOE used its own data along with data from the U.S. Energy Information Administration (our favorite government agency) to create an up-to-date picture of Appalachian NGL supply, demand, and infrastructure. It’s only been six months, but the DOE is back with an updated edition of the same report. Hey, things are changing fast in this space, and Team Trump is on top of those changes. What’s different between the last report and this one? The new report includes “even larger projections for ethane production from the Marcellus and Utica shale plays than previously estimated.” There’s a new section identifying R&D opportunities related to natural gas and NGLs production, conversion, and storage. Perhaps most eye-opening is this: NGLs production in the M-U region is projected to increase over 700% from 2013 to 2023. Yikes! Here’s the latest and greatest from one of the few functional government agencies in Washington…
    Read More “DOE Publishes Updated NGL Primer for Marcellus/Utica”

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    BP: NatGas is “Destination” Fuel, Not Just Bridge to Renewables

    We have long thought (and written) that to concede the argument that renewable energy–wind and solar–is some sort of nirvana, a magical destination, that renewables are our inevitable energy future–is a mistake. To box ourselves in by buying into the argument that natural gas is a “bridge” to get us lower carbon emissions until renewable heaven arrives is faulty thinking. And now, none other than the CEO of BP is saying the same thing. Not in quite the same words we’ve used, but certainly the same sentiment. BP still bows to the alter of man-made global warming nonsense. But at least they have the guts to say, out loud, that natural gas itself is good enough–the “destination” as a fuel, and not simply a “bridge” to renewables. BP CEO Bob Dudley said that this week on a panel at the World Gas Conference in Washington, D.C. On the same panel, French oil giant Total CEO, Patrick Pouyanne, said, “This idea of natural gas as a transition fuel to renewables is strange.” Yes! Finally some clear thinkers willing to stand up for fossil fuels! We need more people to stand up and shout, “The renewables Emperor has no clothes!”…
    Read More “BP: NatGas is “Destination” Fuel, Not Just Bridge to Renewables”

  • Energy Stories of Interest: Thu, Jun 28, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Decade of study shows PA’s environment, shale drilling can coexist; natgas execs see 100 years of supply; natgas will figure big in pared-down GE’s future; Rick Perry says “stubborn opposition” to fossil fuels keeps billions in poverty; power plant emissions continue to fall thx to natgas; protesters ineffective in stopping pipelines; Panama Canal drops LNG transit restrictions; China trucking LNG to overcome lack of pipelines; natgas costs rising in Canada where fracking is banned; and more!
    Read More “Energy Stories of Interest: Thu, Jun 28, 2018”

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    Huge New Marcellus-Fired Power Plant Coming Near Richmond, VA

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    While it’s been in the planning stages since 2016, we’ve only just become aware of an important new (mammoth) Marcellus-fired electric generating plant coming to Charles City County in Virginia. What’s that? Never heard of “Charles City” County? Neither had we. The county is located southeast of Richmond and west of Jamestown. It is bordered on the south by the James River and on the east by the Chickahominy River. The Chickahominy Power Station, as it’s called, will be a 1,650 megawatt state-of-the-art natural gas-fired power plant. The facility is owned and being developed by Balico, and built by Gemma Power Systems. According to a press release announcing Gemma’s involvement with the project, “The project will be powered exclusively by clean natural gas from the Marcellus shale formation.” That’s cool! We’re not exactly sure which pipeline(s) will flow Marcellus gas to the plant, but it’s good to know that our gas will power it. This is a huge plant. It ties as being the largest natgas-fired plant ever, along with the 1,650 MW Apex Power plant being planned for Guernsey County, OH (see Country’s Biggest NatGas Power Plant Breaking Ground in OH Oct-Nov). Here’s more on the coming Chickahominy Power Station near Richmond…
    Read More “Huge New Marcellus-Fired Power Plant Coming Near Richmond, VA”

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    EQT & Range Recent Cutbacks Won’t Affect Production

    Sources talking to the Pittsburgh Business Times have tipped the paper that EQT recently idled something like five fracking crews, and that Range Resources recently idled a top hole drilling rig. Oh oh. Is this an early sign that the gas patch is slowing down again? Are we heading into a downturn? Don’t panic. Although there has been some scaling back, both companies say activity levels and most importantly, production levels, are not jeopardized by their actions. Instead, the moves are about “saving money” and “increasing efficiencies.” The truth is, as technology and strategies continue to improve over time, drillers don’t have to drill as many holes in order to produce the same or more than they produce now. The companies in the Marcellus/Utica patch are getting leaner–more efficient at what they do, and how they do it. Yeah, it sucks when local jobs get whacked due to “efficiencies,” but ultimately it’s a good sign. It means the companies are getting stronger and will stick around for the long term–providing jobs and economic benefits in the communities where they work for years to come…
    Read More “EQT & Range Recent Cutbacks Won’t Affect Production”

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    PA DEP Notifies Shell of “Technical Deficiencies” with Ethane Pipe

    Shell delivered some good news at last week’s Northeast U.S. Petrochemical conference in Pittsburgh: The Falcon ethane pipeline will get built next year (see Shell Says Falcon Ethane Pipeline to Get Built in 2019). The pipeline won’t actually flow ethane to the Shell cracker in Monaca until 2020 at the earliest, because the cracker plant itself won’t go online until 2020 at the earliest. The 97-mile consists of “two legs,” with about half of the pipeline located in PA, the other half in OH. The Pennsylvania Dept. of Environmental Protection (DEP) conducted three public hearings on the project earlier this year, in preparation for issuing permits. Antis came out in force and behaved badly, as they typically do (see More of the Same at Final DEP Hearing for Shell Ethane Pipeline). No matter. The pipeline will get built. But not without jumping some hurdles first. On June 1, the DEP issued three letters identifying what it calls “serious technical deficiencies” in Shell’s pipeline plan, for townships in three different counties along the pipeline’s PA route. Shell maintains this type of notification is “common” in the permitting process, and is committed to working with the DEP to address any issues of concern…
    Read More “PA DEP Notifies Shell of “Technical Deficiencies” with Ethane Pipe”

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    WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub

    A recent article in the left-leaning Roll Call (official publication for Washington, D.C. swamp dwellers) attempts to paint the Trump Administration as out of step with the people he wants to help in West Virginia. The article says Trump’s strategy to prop up failing coal and nuclear plants is an attempt to boost coal mining jobs in WV, but is running counter to the state’s strategy of embracing the natural gas industry. Perhaps they have a point. However, what’s most interesting about the article is not the ginned up conflict between Trump and WV, but how the article spotlights WV’s two U.S. Senators–Republican Shelley Moore Capito and Democrat Joe Manchin–and their continuing role in trying to make a $10 billion NGL (mostly ethane) storage hub facility become a reality. The storage hub will be a jobs magnet with some estimates that it will create more than 100,000 new jobs in the state. The storage hub will also draw manufacturers looking to locate near ethane crackers, as a source for plastics used in their manufacturing process. Capito, in her comments, attempts to gloss over the rivalry between coal and natural gas, saying “all those rivalries have gone by the wayside.” Er, a, we beg to differ. But leaving aside the coal v. natgas focus of the article, we found two very interesting items. (1) The Dept. of Energy loan guarantee that would cover $1.9 billion of the estimated $10 billion cost to build it is a much bigger deal that we had realized. Why? Because any project that wins such a guarantee has gone through a rigorous review process. Winning such a guarantee is like conferring a triple A rating on the project for others who will consider investing in the project. It gives them confidence that the project has been thoroughly vetted and is low risk. (2) Manchin, in speaking with DOE Sec. Rick Perry, is using an interesting and novel argument to convince Perry the storage hub is a good thing to do. Manchin said when hurricanes hit the Gulf Coast, it knocks out petrochemical industry there, with a cascading effect across the U.S. Cracker plants (fed by the storage hub) in the northeast, are not susceptible to hurricanes. So Manchin’s pitch to Perry is this: Keep the Gulf Coast crackers cooking for products to export to other countries, but let’s build the storage hub (and crackers) in the northeast, so our country’s petchem industry isn’t adversely affected by a major hurricane…
    Read More “WV’s US Senators Lead the Charge to Build $10B NGL Storage Hub”

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    Indiana Utility Files Request to Build New Gas-Fired Electric Plant

    Many (most?) electric generating companies in the U.S. are regulated–highly regulated. They’re guaranteed a certain, predictable level of (low) profits. But in return for guaranteed profitability, every single thing they do is monitored and authorized in triplicate, with one or another government agency reviewing anything and everything that happens. It’s the deal they’ve struck with the regulatory devil. Vectren is one such regulated utility in the great state of Indiana. Vectren operates the F. B. Culley Generating Station, a 369 megawatt (MW) coal power plant located in Warrick County, Indiana. They plan to close the coal-fired plant in 2023. In its place, they want to build a 900 MW natgas-fired plant and a 50-acre solar farm. Building the gas plant and solar farm would cost Vectren (meaning ratepayers) $940 million. The cost is passed on to ratepayers because Vectren is regulated. That’s the way it works. The bargain struck with the devil. The gas-fired plant will be cleaner than coal, more efficient, cheaper to operate, and better for the environment. We suspect Utica/Marcellus gas would help feed the plant. And yet, anti-fossil fuel wackos oppose the plan to switch to cleaner-burning natgas. Would they prefer no electricity?…
    Read More “Indiana Utility Files Request to Build New Gas-Fired Electric Plant”

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    SRBC Elects New Officers, NY Becomes Chair on July 1

    Perhaps the proposed legislation by PA Rep. Dan Moul (Republican from Gettysburg) to gut not only the DRBC (Delaware River Basin Commission) of its power to regulate groundwater, but also to gut the SRBC (Susquehanna River Basin Commission), is not so far off the mark after all (see PA House Bill to Neuter SRBC, DRBC Makes It to First Base). We always viewed the SRBC as a good steward of water resources within the river basin it governs, preferring to “stay in its lane” and not presume to regulate shale drilling the way the DRBC has (see SRBC Tells Anti-Drillers “We’ll Stay in Our Lane” on Water Study). Apparently each year (or two or three, we’re not sure) the SRBC rotates the positions of Chair and Vice Chair among its four members (US Army Corps of Engineers, New York, Pennsylvania, Maryland). Currently the Chair belongs to the Army Corps, but on July 1st it will change to NY. The problem is that NY’s rep on the Commission is Basil Seggos, NY Dept. of Environmental Conservation (DEC) Commissioner and an appointee by Andrew Cuomo. Seggos is a hardened, very politically left anti-fossil fueler–a puppet and tool of Cuomo. Will this change in leadership at the SRBC have an impact on how the organization operates?…
    Read More “SRBC Elects New Officers, NY Becomes Chair on July 1”

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    First Pipeline “Casualty” of Trump Tax Cut Dissolves MLP Jun 29

    In March, MDN brought you the news that the Federal Energy Regulatory Commission (FERC) had taken “significant action” to address the Trump tax cut legislation enacted last December (see FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut). FERC wants to be sure the tax cuts coming to electric companies and pipeline companies are passed on to consumers and pipeline shippers. The agency proposed new solutions to eliminate “tax loopholes” for natural gas pipelines. Closing these so-called loopholes will eliminate certain tax benefits for MLPs–master limited partnerships. Many pipeline companies (most) are organized as MLPs, which allows tax advantages to flow to investors. With certain tax benefits for MLP unitholders on the chopping block, all of a sudden some MLPs don’t look like such a hot investment anymore, at least on paper. Some analysts have speculated this may be the beginning of the end for MLPs. A few years ago Kinder Morgan got rid of all it’s MLP subsidiaries, combining them all into a single “C” corporation. In March, Tallgrass Energy, builder/operator of the mighty Rockies Express (REX) pipeline which flows Marcellus/Utica gas, announced it would do the same (see Tallgrass Energy Eliminating MLP – First “Casualty” of Tax Cut?). Yesterday Tallgrass MLP unitholders voted “overwhelmingly” to dissolve the MLP and merge it in with the corporation, which will happen later this week…
    Read More “First Pipeline “Casualty” of Trump Tax Cut Dissolves MLP Jun 29″

  • Energy Stories of Interest: Wed, Jun 27, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA PUC hosts natgas distribution emergency exercise; NY a cautionary tale for other states re shale gas; Chevron, Exxon worry warts over trade war; NERC says grid resiliency keeps on improving, without coal/nuke bailout; US reduces emissions while emissions from all other Paris accord counties goes up; will a hot summer boost natgas prices?; start treating natgas like the national treasure it is; China to be top natgas importer by 2019; regs & taxes causing drillers to leave Canada and drill for oil across the border in the US; and more!
    Read More “Energy Stories of Interest: Wed, Jun 27, 2018”