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    Mountain Valley Pipeline Cost Goes Up $1.1B, Online by Late 2019

    The price tag to build the 303-mile Mountain Valley Pipeline is going up. When first announced, the project, which will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA, was originally estimated to cost $3.5 billion. That number was tweaked this summer to $3.7 billion. Now MVP (i.e. EQT Midstream) says it will cost a whopping $4.6 billion–more than a billion dollars higher than the original estimate. Why the big hike? Two things, says MVP: (1) A work stoppage imposed by the courts and by FERC (thank you Sierra Club), and (2) heavy rain. The rise in cost is due more the former rather than the later. It was only yesterday we ran a story about how much it costs, per mile, to build a major pipeline in the northeast (see How Much Does it Cost to Build a Pipeline in the Northeast?). The costs to build all northeast pipelines continue to rise because of frivolous lawsuits by groups like the Sierra Club (nasty organization). We told you yesterday that it’s costing MVP’s chief competitor, Dominion’s Atlantic Coast Pipeline, $8.5 million per mile to build. Doing the math with the new/higher cost, the 303-mile MVP project will cost $15.2 million per mile to build! Ouch. The one bit of good news coming from MVP is that they say the project is still on track to be built and flowing gas by the end of 2019…
    Read More “Mountain Valley Pipeline Cost Goes Up $1.1B, Online by Late 2019”

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    Senate Committee Hears Testimony on Foreign Meddling in PA Shale

    The Pennsylvania Senate Environmental Resources and Energy Committee yesterday heard testimony from several witnesses on the topic of foreign meddling meant to suppress or stop Marcellus Shale production in the Keystone State (and beyond). There were three witnesses, all of them stars (and all MDN friends). One of the three was MDN buddy Tom Shepstone, writer of the always-excellent Natural Gas Now website. As he so deftly does, Tom connected the dots between foreign money and (in this case) the Heinz Endowments, further connecting Heinz to non-profits like THE Delaware Riverkeeper and PBS’ StateImpact Pennsylvania. Here’s how it works: Chris Heinz (one of the directors of the Heinz Endowments) is heavily invested in a Ukrainian gas company. That company is competing with, and wants to suppress, American (including Marcellus) gas from being sold to Europe. Heinz Endowments pumps big money into Riverkeeper, StateImpact and other anti-fracking shill groups, enabling them to file lawsuits, launch negative PR, and make all manor of mischief to slow and stop Marcellus drilling. Which benefits Chris Heinz’s back pocket. The solution, according to Tom, is “sunlight.” Force these non-profits to disclose who is funding them. And get the Auditor General to investigate the “unholy alliance” between these nonprofits and foreign entities. We’d add a third item: Get the IRS to investigate funders like Heinz, organizations that engage in overtly political activities via proxy, in violation of their tax-exempt status…
    Read More “Senate Committee Hears Testimony on Foreign Meddling in PA Shale”

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    PA Republicans Support Bill to Make Pipeline Trespass a Felony

    Perhaps this is an overstatement and a tad too generalistic, but once again Republican lawmakers have shown they are the party of law and order, while Democrats have shown they are the party of lawlessness and disorder–at least in Pennsylvania. Yesterday the PA House Environmental Resources and Energy Committee tweaked and then passed (on a party line vote) Senate Bill (SB) 652 which makes trespassing on rights-of-way of “critical infrastructure” (pipelines, power lines, refineries, etc.) a felony instead of a misdemeanor. Democrats don’t like it, because their party’s members are typically the ones who engage in illegal trespass in order to slow down and block work on things like don’t like–like pipelines. Dems maintain they have a right to “free speech” to illegally block pipeline work, just because they don’t like it and can’t stop it using lawful means. The difference between the two sides could not be more clear…
    Read More “PA Republicans Support Bill to Make Pipeline Trespass a Felony”

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    Proposed Meadowlands Marcellus-Fired Electric Plant in Trouble

    Manneken Pis – famous statue in Brussels, Belgium

    MDN reported in April that a subsidiary of Japanese conglomerate Mitsubishi wants to build a huge, new $1.5 billion natural gas-fired electric generating plant in the Meadowlands (New Jersey), just outside of New York City (see Marcellus Electric Plant Proposed for Meadowlands to Power NYC). The North Bergen Liberty Generating Project, at 1,200 megawatts, will help replace some of the electricity lost when the Indian Point Nuclear plant located in New York along the Hudson River closes down in 2021. We suspect that since the mighty Transco pipeline, which flows mostly Marcellus molecules in the northeast, will feed the Meadowlands project, this plant will become an important new market for PA Marcellus production. The town where the plant will be located, North Bergen, is jazzed about the plant (see NJ Town Ready to Approve Meadowlands Marcellus-Fired Power Plant). And wonder of wonders, liberal Democrat NJ Gov. Phil Murphy approved the first in a series of required permits in July (see Surprise! NJ Issues Permits for Meadowlands Marcellus-Fired Plant). Yes, it did seem like things were going too well. The Sierra Club has been lobbying nonstop to defeat the project, and their efforts at spreading doom and gloom are, unfortunately, bearing fruit. Somehow the Clubbers have convinced the New York ISO (the electricity authority for NY, where the electricity from this plant will be sold) to claim it doesn’t really need the electricity after all. Even though 25% of its electricity will soon disappear from the grid when Indian Point closes. NY’s claim now means the project will be delayed and that the builders will need to produce a report proving NY really does need the electricity. An electric peeing match. The Clubbers have also spread rumors to neighboring towns, telling them the plant will poison their air, so some neighboring towns are now opposed to the project…
    Read More “Proposed Meadowlands Marcellus-Fired Electric Plant in Trouble”

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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”