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    Liberty Utilities Floats Plan for 27-Mile Pipeline in Southern NH

    All New England states are in desperate need of more natural gas–for both consumers (residences and businesses that use it to heat and cool) and for power generating plants. Yet each New England state in one fashion or another has actively opposed any new interstate pipelines to bring in more gas. Two major pipeline projects were proposed to help alleviate the situation. Kinder Morgan’s Northeast Energy Direct (NED) was canceled in April 2016 (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Spectra Energy’s Access Northeast project has been dormant, although as we reported earlier this week, it may once again have a pulse (see NH Supreme Court Decision Puts New England Pipe Back in Play). A New Hampshire utility company, Liberty Utilities, floated a new plan this week for a teeny tiny new pipeline, called Granite Bridge, that will run underground along Route 101 from Stratham to Manchester. In addition, Liberty proposes building a natgas storage facility in an empty quarry in Epping. We’re not exactly sure where the extra gas will come from that will get stored and then pumped along this new pipeline (Liberty says it’s coming from the “Seacoast”). Our reason for highlighting this story is this: Can ANY state in New England build ANY kind of natural gas pipeline? Even a pipeline project as small and modest as this one? That’s the gajillion dollar question…
    Read More “Liberty Utilities Floats Plan for 27-Mile Pipeline in Southern NH”

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    EnerVest & EV Energy Partners on the Rebound with $70+ Oil

    Private equity firm EnerVest owns a lot of acreage and wells (most of them conventional) in the Marcellus/Utica region. In addition to investing in land and wells, EnerVest also has its own drilling subsidiary, EV Energy Partners (EVEP), with operations and assets in OH, PA and WV. EVEP is an MLP–a master limited partnership. While EVEP is joined at the hip with EnerVest, they are (on paper) two different companies. EnerVest has vast holdings and is in the top 25 oil & gas companies in the nation. Last July the Wall Street Journal ran a story that said EnerVest was worth nothing on paper. EnerVest pushed back on that story saying it wasn’t true–at least not completely true. EnerVest chief administrative officer, Ron Whitmire, said the company’s vast holdings are structured as more than a dozen companies. Although some of EnerVest’s companies are in trouble, the entire pie, according to Whitmire, is not in danger of bankruptcy. Conversely, Whitmire’s comment also meant that at least one or more of the EnerVest companies were/are in danger of bankruptcy. EVEP was one of them, filing in early April (see EV Energy Partners Files for Chapter 11 Bankruptcy). A new Bloomberg story takes a look at EnerVest and its 72 year-old CEO, John Walker. The article says Walker, “sees redemption ahead as oil prices rise and EnerVest gets its finances in order.” That’s certainly some good news for the company. We might summarize it this way: The current high price of oil has just pulled EV’s bacon out of the fire…
    Read More “EnerVest & EV Energy Partners on the Rebound with $70+ Oil”

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    Once Again Wolf Pushes DCED Sec. to Support Severance Tax

    Dennis Davin – Sec. DCED

    Secretary of the Pennsylvania Dept. of Community and Economic Development (DCED), Dennis Davin, is once again doing what he’s told, in order to keep his job. The DCED’s job is to promote new business to locate in PA, not drive it away. Davin is a bright guy. He knows that higher taxes drive businesses away. But he works for the most liberal governor in America (well, maybe second most, next to Andrew Cuomo). And when Wolf says “Jump!”, Davin has to ask, “How high?” That’s the only explanation we can think of for why Davin continues to support an insane severance tax on top of the existing impact tax–a double tax that would, along with the already-high corporate income tax in PA, force PA into the role of having the highest effective oil and gas taxes in the country. Davin wrote an editorial recently appearing in the leftist Pittsburgh Post-Gazette, supporting his boss’ insane plan for a severance tax. It’s not the first time Davin has had to stoop this low. He did the same thing last year (see PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax). Poor Dennis…
    Read More “Once Again Wolf Pushes DCED Sec. to Support Severance Tax”

  • Other Energy Stories of Interest: Fri, May 25, 2018

    NOTE: Beginning today, we are trying an experiment. There are a number of stories we notice during our daily trawl of the news that catch our interest for one reason or another. We list them in our “best of the rest” each day. Beginning today we are including a note at the end of each brief we share, [inside brackets like this], to let you know what about the story caught our interest, or why the story is worthy of your attention, or what is important to know about the story. Sometimes the note will add extra details not found in the story as reported. Our note at the end of each entry is our brief explanation for “why you should care” about that particular story.

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA Game Commission bans wind turbines on 1.5M acres; JKLM hosts PennState tour in Potter County; ceremonial groundbreaking for Atlantic Coast Pipe in WV; local college programs train o&g workers; NJ regulators approve $1.9B natgas system upgrade; Trump tax cuts become an issue in PA gov race; Trump’s Keystone XL pipe approval has its day in court; electric vehicles for the rich subsidized by all of us; coal goes after natgas; enviro radicals’ new favorite strategy is litigation; LNG bunkering; toxic solar panels; snap – climate scientist claims global warming will lead to extinction of mankind; and more!
    Read More “Other Energy Stories of Interest: Fri, May 25, 2018”

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    Shell Cracker Advertises First 40 Permanent Production Jobs

    Although Shell has hired a few permanent workers for its mighty $6 billion ethane cracker complex currently under construction in Monaca (Beaver County), PA, the company has just (for the first time) posted a job notification for bulk hiring of permanent positions. The job notice, posted on the BrassRing HR website, provides a detailed job description for “Shell Production Operators” in Monaca–40 of them. The job includes, “monitoring, controlling, starting and stopping equipment (such as furnaces, pumps, compressors, etc.), conducting activities that pertain to unit operation, and taking corrective action when necessary to ensure that all unit conditions and operations are in compliance with safety, environmental, and operating policies and procedures.” In order to qualify, prospects must jump through a several hoops (mechanical aptitude tests). If selected, candidates will go through extensive training from now until the plant opens some 2-3 years from now. Here’s the deets, including the full job description…
    Read More “Shell Cracker Advertises First 40 Permanent Production Jobs”

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    PA Senate Passes Bill Making Pipeline Trespass a Felony

    It’s about time! One of the favorite tactics of antis to fall back on when they don’t win in court is to simply take the law into their own hands (i.e. anarchy). If the courts or a regulatory body (like FERC, or the PA DEP) refuse to stop a critical energy infrastructure project, like a pipeline, antis take it upon themselves to trespass, illegally, in an attempt to block work on the project. They call it “free speech.” It’s nothing of the sort. To trespass is, by definition, breaking the law. Antis know this. However, such a violation of the law is currently only a misdemeanor–a lessor penalty. The PA Senate has just approved a bill that would make infrastructure trespass for pipelines and other key energy infrastructure a felony, giving antis more incentive to behave themselves. Most Republican Senators (except a few Philly RINOs) voted for the bill. Most Democrat Senators (who prefer to be lawless), voted against it. We can only hope the bill gets adopted–it now goes to the House–although with Wolf as governor, we’re not confident it will get signed into law…
    Read More “PA Senate Passes Bill Making Pipeline Trespass a Felony”

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    Big Data Comes to EQT – Drilling Now Done Remotely from Pittsburgh

    Noble Energy drilling simulator

    Back in 2015 MDN editor Jim Willis had an experience he won’t forget. Cabot Oil & Gas chief geologist Buddy Wylie gave Jim and landowner Chris Acker a personal tour of two wells being drilled on Chris’ property. Wyle is THE guy most responsible for Cabot’s enormously successful drilling program in Susquehanna County. As a reminder, Cabot (a single company) currently produces 2.2 billion cubic feet per day of natural gas out of Susquehanna County (a single county), representing 2.6% of ALL natural production in the U.S.! Jim won’t forget Buddy regaling us with the wonders of mud logging. 🙂 Part of the tour included a visit to “the dog house”–the control center that sits atop the drilling rig. The dog house/control center is packed with computers and monitors–akin to something you might see in a jet cockpit. Just like the military now flies airplanes unmanned (drones) with people sitting in a control room thousands of miles away, drilling rigs are now being steered and controlled by a remote cockpit (dog house) hundreds of miles away. Big Data has come to the oil patch–at least it has for the country’s largest natural gas-producing company, EQT. What started as an experiment a year ago has blossomed into a control center operating all 10 of EQT’s active drilling rigs. All directional drilling, geosteering and drilling engineering, happens from a control center in EQT’s Pittsburgh headquarters. It’s really cool stuff. Beyond being cool, it saves money and time, making the company more efficient. Up next? Remote control of fracking operations…
    Read More “Big Data Comes to EQT – Drilling Now Done Remotely from Pittsburgh”

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    NH Supreme Court Decision Puts New England Pipe Back in Play

    A recent New Hampshire Supreme Court decision may breathe new life into a natural gas pipeline project believed to be dead–or at least on life support. Spectra Energy (now owned by Enbridge) first announced an unnamed pipeline project to shuttle gas from the Marcellus/Utica to New England in July 2014 (see Spectra Energy to the Rescue! New England Pipeline Expansion). In September 2014 Spectra announced they had named the project Access Northeast and added Northeast Utilities–now called Eversource Energy–as a partner (see Spectra Energy New England Pipeline Gets a Name & a Partner). In December 2014, Spectra formed an alliance with a competitor, the Iroquois Gas Transmission pipeline, to further extend the reach of the project (see Spectra Energy Alliance with Iroquois to Sell Marcellus Gas to NE). The project is pegged to cost around $3 billion and would connect four different pipeline systems: Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast. But then Spectra/Eversource was dealt a body blow by Massachusetts in 2016 (see MA Supreme Court Ruling Endangers New England Gas Pipelines). The project was dealt a second body blow in 2016 by New Hampshire when regulators said Eversource could not pass along some of the costs of the pipeline to electric rate payers (see NH Regulators Veto Access Northeast Pipeline Contract). The NH Supreme Court has just overturned the ruling by NH regulators and has said yes, Eversource CAN pass along some of the costs, because electric customers will directly benefit from the pipeline project…
    Read More “NH Supreme Court Decision Puts New England Pipe Back in Play”

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    Radical Groups Band Together to Pressure Gov Wolf to Ban Fracking

    A mishmash of national Big Green and local Little Green (funded by Big Green) groups from Pennsylvania have banded together in order to apply pressure on (i.e. bully) a weak-willed governor, PA Gov. Tom Wolf. A coalition of anti-fossil fuel groups, calling themselves Pennsylvania Fracking Health Impacts, has begun protesting Wolf outside of fundraisers and other venues. Their demand? That Wolf enact an immediate moratorium (i.e. ban) on all fracking in the state. One of the useful idiots providing support to the new coalition is actor and fractivist Mark Ruffalo (who plays The Incredible Hulk in Marvel’s Avengers movies). Ruffalo trash-talked Wolf and said that Wolf, “has done nothing to help the many families who have been harmed by fracking. Now I am joining with the Pennsylvanians who are launching this public health impacts campaign to help shine a light on this unjust tragedy and ask when will Governor Wolf act?” Just because Ruffalo is a good actor doesn’t mean he’s smart. Far from it! He’s about as stupid as they come. Talented actor–you can’t take that away from him. But when it comes to actually having a brain? Sadly, he was passed over. The aim of the new group in PA is to see if they might be able to shame and pressure Wolf into shutting down the Marcellus industry. We seriously doubt that will happen, but hey, one never knows when it comes to Lib Dems…
    Read More “Radical Groups Band Together to Pressure Gov Wolf to Ban Fracking”

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    Only 10 Miles of Atlantic Coast Pipeline Affected by Court Ruling

    Last week MDN told you that the U.S. Fourth Circuit Court of Appeals had invalidated (vacated) a permit issued by the U.S. Fish and Wildlife Service that allows Dominion Energy’s Atlantic Coast Pipeline (ACP) to accidentally kill a few bats and bumble bees (classified as endangered) as it builds the massive $6.5 billion, 600-mile project from West Virginia to North Carolina (see U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe). The Sierra Club and several other radical, far-left groups were behind the court case that led to the decision. However, as it turns out, the decision doesn’t really hurt the project all that much. The vacated permit isn’t so “key” after all. Of the 600 or so miles of pipeline getting built, the vacated permit from Fish and Wildlife only affects about 10 miles of pipeline. A nothingburger. Dominion continues to build ACP and the 10 miles of affected construction will get done after Fish and Wildlife redoes the paperwork to the court’s liking. Antis are furious (as they always are), claiming the court ruling shuts down all construction. Not so. Construction continues, despite antis’ moaning and groaning…
    Read More “Only 10 Miles of Atlantic Coast Pipeline Affected by Court Ruling”

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    New Yorkers Pay 44% More for Electric than Neighboring States

    On average, New York residents pay 44% more for electricity than neighboring states, like Pennsylvania. In January of this year, New Yorkers (and NY utility companies) were briefly forced to pay a record high of $140.25 per thousand cubic feet (Mcf) for natural gas, as opposed to what everyone else was paying (an average of $3.08/Mcf)–which is 46 times as much! Both stats are rooted in the same issue: NY pays WAY MORE for energy than it has to, because Andrew Cuomo is blocking natural gas pipelines into the state from PA. So says a new report titled “Pipelines and their Benefits to New York” (full copy below). The report, published by the Consumer Energy Alliance, examines the benefits of pipelines to New York, highlighting the need for affordable energy supplies to keep the daily lives of families and businesses across New York moving. Without those pipelines, we’re toast. You can’t build windmills and solar farms fast enough to meet the growing demand for electricity–and natgas. Cuomo’s dysfunctional energy policies are blocking all New Yorkers, upstate and downstate, from living even moderately prosperous lives…
    Read More “New Yorkers Pay 44% More for Electric than Neighboring States”

  • Other Energy Stories of Interest: Thu, May 24, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: ODNR issued single OH Utica permit last week; NJ gov OKs $300M annual ratepayer bailout for nuke plants; WV legislature votes to join energy consortium; OH EPA seeks feedback on Shell ethane pipeline; Harold Hamm says oil heading for $80/barrel; gas market is in “serious” but “stable” condition; US battles Canada for gas market share; states & Trump admin ask court to dismiss climate change lawsuits; and more!
    Read More “Other Energy Stories of Interest: Thu, May 24, 2018”

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    Rex Energy Owes Nearly $1B – Who They Owe & How Much

    Last week Rex Energy filed for Chapter 11 bankruptcy protection (see Clock Runs Out – Rex Energy Files for Chapter 11 Bankruptcy). Right after filing, the company announced it has put up essentially all of its Marcellus/Utica assets (leases, wells, etc.), for sale, in order to pay off what it owes (see Fire Sale: Rex Energy Selling Everything to Pay Back Lenders). Which begs the question: What does the company owe? As it turns out, it’s close to $1 billion. The company, in a filing made on the first day of bankruptcy proceedings, included a list of who it owes, for what purpose, and how much–totaling $984.5 million. The biggest chunk is owed to a Delaware bank, some $617 million. However, Rex also owes money to 29 other entities, including MarkWest Energy, various oilfield services companies, taxes, and even some royalties are owed. We have the full list of the 30 entities that are owed money–detailing how much and for what purpose…
    Read More “Rex Energy Owes Nearly $1B – Who They Owe & How Much”

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    UGI Expanding NEPA Gathering System to Flow More Cabot Gas

    UGI, a large utility (and pipeline) company located in Pennsylvania, has announced they will expand a northeastern PA pipeline gathering system. UGI built what they call the Auburn Gathering System between 2011 and 2015–46 miles of pipe, two compressors stations and various other pipeline related facilities located in Susquehanna, Wyoming, and Luzerne counties (near Scranton). UGI spent $215 million to build the system, a system that currently flows 470 million cubic feet per day (MMcf/d) of natural gas. Much (most?) of that the gas comes from Cabot Oil and Gas in Susquehanna County. The new news is that UGI will build two new compressor stations, adding to the existing two, which will increase flows through the system by another 150 MMcf/d–all of the increase coming from Cabot. Here’s the good news that more Cabot gas will soon flow through the Auburn System, connecting with two of the biggest pipeline systems in the country–the Tennessee Gas Pipeline (Kinder Morgan) and the Transco Pipeline (Williams)…
    Read More “UGI Expanding NEPA Gathering System to Flow More Cabot Gas”

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    Top NJ Officials Continue Attacks Against PennEast Pipeline

    New Jersey’s Attorney General, Gurbir Grewal (Democrat), and New Jersey Senator Corey Booker (also a Democrat) continue a coordinated attack on the PennEast Pipeline in an effort to appease their radical/left base of supporters. PennEast is a $1 billion, 120-mile, 36-inch pipeline from Dallas (Luzerne County), PA to Pennington (Mercer County), NJ. The Federal Energy Regulatory Commission (FERC) granted final approval for the project in January (see FERC Grants Final Approval for PennEast Pipe – Real Battle Begins). Since that time the NJ Sierra Club along with other so-called environmental organizations have coordinated legal and regulatory attacks against the project, enlisting willing accomplices Grewal and Booker. In March Grewal asked the U.S. District Court in NJ to overturn PennEast’s federally-delegated right to use eminent domain to take state-owned AND private-owned property in the path of the pipeline. In early April, Sen. Booker asked FERC to reconsider its approval of the project. And earlier this week, the NJ Dept. of Environmental Protection and Delaware and Raritan Canal Commission, represented by Grewal, asked the D.C. Circuit Court of Appeals to review FERC’s January approval of the project. NJ has all guns out and shooting in an attempt to assassinate PennEast…
    Read More “Top NJ Officials Continue Attacks Against PennEast Pipeline”

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    Crestwood Testing Proposed LPG Storage Site @ Seneca Lake for Leaks

    Lately we’ve wondered what’s been going on in the years-long struggle by Crestwood to create an LPG (liquefied petroleum gas, or propane) storage facility in a depleted salt cavern along the shoreline of Seneca Lake in the Finger Lakes region of Upstate New York. Last December we brought you the news that Crestwood had won a victory when a chief administrative law judge, part of the state Dept. of Environmental Conservation (DEC), ruled against antis who are demanding ongoing, never-ending hearings about the project–a transparent tactic to continue the years-long delay in perpetuity (see Crestwood Scores Big Victory in Seneca Lake LPG Storage Project). The judge said the DEC has all the evidence it needs to make a decision. Of course, the decision will get made by a radical anti who heads up the DEC–Basil Seggos (part of the National Resources Defense Council cabal that opposes all fossil fuel projects). So the project still has miles to go before it becomes reality. But now, a new setback, not that the project hasn’t been “setback” from the beginning by radicals. This time the setback comes from within. An attorney representing the project sent a letter to the DEC on May 17 asking them to delay (?!) a decision while Crestwood runs more tests on well pressure to “determine its suitability as a gas storage unit.” That is, the depleted salt cavern may leak. Radicalized antis have pounced, demanding the DEC cancel the project forthwith–even before the test results are in…
    Read More “Crestwood Testing Proposed LPG Storage Site @ Seneca Lake for Leaks”