• Other Energy Stories of Interest: Mon, May 21, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Trillium opens third CNG station in New Castle, PA; Energy Transfer’s growth projects; M-U Shale Crescent offers big advantages for investors; Trump tax cuts flow through to PA utility customers; energy speakers say pipelines key to natgas boom; the bitter world of fractivism; thank goodness for U.S. natgas exports; California and Texas may see power shortages this summer; Russian pipeline to Europe a bargaining chip; and more!
    Read More “Other Energy Stories of Interest: Mon, May 21, 2018”

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    Clock Runs Out – Rex Energy Files for Chapter 11 Bankruptcy

    In early April, Rex Energy, a driller focused solely on the Marcellus/Utica driller, defaulted on payments it owes to debtholders (see Rex Energy Defaults on IOUs, Can’t File Annual Report on Time). Rex told the Securities and Exchange Commission (SEC) the company could not make a semi-annual interest payment due on senior notes on April 2. Rex said in the filing that the noteholders to whom payment is due signed a temporary “forbearance” agreement that gives Rex a little breathing room, until April 16. The April 16 payment didn’t happen. Rex and the noteholders signed a second forebearance agreement giving Rex another extension, then another, then another. At least four, maybe five such extensions were granted. But in the end, Rex could not work out favorable terms. And lack of progress caused the banks that lend Rex money to call in the loans. With no money to pay those loans, Rex has no choice but to file for Chapter 11. Rex reported in an SEC 10-Q filing on Tuesday that: “An acceleration notice from the lenders of our senior term loan has been received and we lack the liquidity to pay these obligations. Given these circumstances, the Company is currently in the process of preparing to file for protection under Chapter 11 of the U.S. Bankruptcy Code which is expected to occur imminently following the filing of this Form 10-Q.” Rather ominously, the next sentence reads: “There can be no assurances that the Company will be able to reorganize its capital structure on terms acceptable to the Company, its creditors, or at all.” What does this mean for Rex’s Marcellus/Utica drilling program?…
    Read More “Clock Runs Out – Rex Energy Files for Chapter 11 Bankruptcy”

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    U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe

    Disgusting and frustrating. That’s our reaction to a decision by the U.S. Fourth Circuit Court of Appeals that invalidates (vacates) 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. The Sierra Club, Defenders of Wildlife and Virginia Wilderness Committee (all radical left organizations) previously sued in federal court asking the court to stop work on ACP until the Federal Energy Regulatory Commission makes a decision on whether or not to “rehear” their decision to approve the project in the first place. In March, the court declined to stop work on ACP (see Fed Court Dismisses Anti Lawsuit to Stop Atlantic Coast Pipeline). However, as part of the effort to stop ACP, Sierra Club, et al also asked the court to invalidate a key permit by the U.S. Fish and Wildlife Service, which the court did do on Tuesday. Sierra Club is now demanding that the court revisit its decision about whether to stop all work on the pipeline. In the meantime, work does continue. Dominion says while it’s disappointed in the decision and will have to get a new, more specific permit from Fish and Wildlife, in the meantime they’ll continue construction in those (many) places not under the now-invalid permit. That is, most construction will continue. This does not really hamper the project. Not yet anyway. As long as the Fourth Circuit doesn’t shut it all down…
    Read More “U.S. Fourth Circuit Court Vacates Key Permit for Atlantic Coast Pipe”

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    Fed Court Forces FERC to Decide on MVP Rehearing, No More Delays

    It was a big week for Sierra Clubbers. The radical environmental organization (that irrationally hates all fossil fuels, even fossil fuels they used to love, like natural gas) previously filed a lawsuit in the U.S. District Court of Appeals for D.C. asking the court to consider whether or not the Federal Energy Regulatory Commission (FERC) should have issued an approval for Mountain Valley Pipeline (MVP). MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–to move Marcellus/Utica gas south. No, the court did not rule FERC was out of order in its decision. Not yet, anyway. This gets in the weeds just a bit, so bear with us. The first step in the process of challenging a pipeline is to ask FERC to rehear their decision. If FERC refuses to rehear (reconsider) the decision, then whoever asked for the rehearing is free to file a lawsuit in the court system to challenge FERC’s decision to approve a project. FERC has 30 days to make a rehearing decision–unless they pull out the “tolling order” card and play it. A tolling order allows FERC more time to decide on rehearing–months, even a year. FERC played the tolling order card here and told the court, “We haven’t decided on rehearing yet, so you need to toss out the radical Sierra Club lawsuit challenging our decision to approve MVP” (MDN condensed version). This week the court said a very loud “NO” to FERC’s request. The court further told FERC to get off its duff and make the rehearing decision within 30 days. In the meantime, the Sierra Club of course wants MVP construction “paused indefinitely” while they continue to tie it up in legal knots. Don’t look for that to happen…
    Read More “Fed Court Forces FERC to Decide on MVP Rehearing, No More Delays”

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    FERC Tax Decision Forces Williams to Restructure – No More MLP

    It appears a decision by the Federal Energy Regulatory Commission (FERC) earlier this year that strips away the main advantages of the tax-advantaged master limited partnerships (MLP) structure is causing the MLP to go the way of the dodo bird. Because of the Trump tax cut, in March FERC reversed a previous policy and will no longer allowed MLP interstate oil and gas pipelines to include an income tax allowance in their cost-of-service rates (see FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut). Not long after, Tallgrass Energy, owner of the Rockies Express Pipeline, announced they would phase out their MLP structure (see Tallgrass Energy Eliminating MLP – First “Casualty” of Tax Cut?). As we predicted, it was the first of many to do so. Williams is now the latest midstream company to dump its MLP. Williams is essentially two companies–Williams (the corporation) and Williams Partners (the MLP). The MLP owns most of the assets. Williams Partners will be no more and instead, all of the assets will now live under the Williams (corporation) umbrella. Which shouldn’t surprise anyone. Once upon a time Williams had plans to merge the two together–but that all got mothballed when they ended up first fighting against, then trying to merge with Energy Transfer Equity (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). FERC’s action in March provided the motivation for Williams to move forward with phasing out the Williams Partners MLP, which will cost Williams (the corporation) $10.5 billion to do…
    Read More “FERC Tax Decision Forces Williams to Restructure – No More MLP”

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    Williams Refiles Application with NY DEC for Transco NESE Project

    In April MDN told you that the New York Dept. of Environment Conservation (DEC) had rejected a modest pipeline expansion proposal by Williams’ Transco Pipeline subsidiary (see Cuomo-Corrupted DEC Denies Permit for Williams NESE Pipe Project). The project, which we’ve previously written about and are actively promoting, is called the Northeast Supply Enhancement (NESE) project (see Time to Support Transco’s Northeast Supply Enhancement Project). NESE is meant to increase pipeline capacity and flows heading into northeastern markets. Transco wants to provide more Marcellus natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Long Island, Rhode Island and Massachusetts. There are a number of components to the project, but the key component, the heart of the project, is a new 23-mile pipeline from the shore of New Jersey into (on the bottom of) the Raritan Bay–running parallel to the existing Transco pipeline–before connecting to the Transco offshore. The DEC warned Williams that they would reject the application as incomplete unless/until FERC itself provides an environmental assessment of the project. That happened in March, but the DEC said it didn’t have enough time to review it and requested Williams refile (we’ve heard that one before). Given Cuomo is refusing to approve any new natural gas pipeline projects (see him say it point blank in this video), we’re not optimistic that the DEC will actually approve it this time either…
    Read More “Williams Refiles Application with NY DEC for Transco NESE Project”

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    Atlantic Sunrise Pipeline Nearly Done in Lancaster County – July

    Good news. The main part of the Atlantic Sunrise Pipeline project–where it runs through Lancaster County, PA–is almost finished. Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. The most opposition to the pipeline has happened in Lancaster County. Right now 90% of the pipeline has been welded in Lancaster County and sits above ground. By the end of July, all of it will be done and buried in the ground. It won’t be long after that that the entire 198 miles will begin to flow northeast PA Marcellus gas…
    Read More “Atlantic Sunrise Pipeline Nearly Done in Lancaster County – July”

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    Liberal Groups Force Range, Anadarko to Consider Global Warming

    We get tired of saying it, but perhaps we should never get tired of saying that according to the most reliable methods of tracking temperatures on earth (by satellite), THERE IS NO GLOBAL WARMING. The only way global warming alarmists get away with claiming the earth is heating up is by using doctored computer algorithms. The actual testing and measurement of temps doesn’t show we’re heating up! And yet the manipulators who persist in using scare tactics that mankind is somehow causing the earth to heat up catastrophically by burning fossil fuels and leaking methane into the atmosphere, have just claimed a couple of more scalps in their efforts to shut down the fossil fuel industry. A so-called church, the Unitarian Universalist Association (people who believe in everything, consequently they believe in nothing) bought $2,000 worth of Range Resources stock and proposed a resolution to all shareholders at the annual meeting that forces Range to publish a report on how evil the company is for causing global warming (i.e. produce a report on Range’s efforts to scale back methane emissions). The measure passed by 50.25%. A group called As You Sow bought Anadarko stock and floated a resolution instructing the company to produce a report on how mythical man-made global warming will affect the company financially as it will no doubt have to scale back its exploration and production. That resolution passed by 53%. These groups, with innocent-sounding names, are NOT innocent. They are far left, liberal groups that have snookered shareholders into voting against their own best interests by harming the very companies they invest in, forcing those companies, ultimately, to stop drilling. All in the name of “climate change” (i.e. global warming)…
    Read More “Liberal Groups Force Range, Anadarko to Consider Global Warming”

  • Other Energy Stories of Interest: Fri, May 18, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA Sen. Scott Wagner (friend of gas) wins PA primary to challenge Tom Wolf for governor; industry invests $63.9B in Ohio Utica; UGI lowering natgas rates starting June 1; PA EQB taking public comment on raising shale permit fees 250%; could Utah see the country’s largest shale oil operation?; the great Bakken rebound; CFTC issues report on LNG markets; Gulf Coast ports limiting crude oil exports; Trump Justice Dept. tells court climate lawsuits violate Constitution; US o&g companies have invested $108B (!) in greenhouse gas reduction since 2000; and more!
    Read More “Other Energy Stories of Interest: Fri, May 18, 2018”

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    NY Gov. Cuomo Says He’ll Block All New Gas-Fired Elec Plants

    We’re simply at a loss for words. New York Gov. Andrew Cuomo is not a dictator, or is he? Cuomo said on a recent campaign stop that he will unilaterally, illegally, block all new “fossil fuel” powered electric plants in the state, including clean-burning natural gas-fired plants. The man is delusional. He doesn’t have that power–unless the sheeple that live in NY allow him to get away with it. We New Yorkers must rise up and stop this megalomaniac before he plunges NY into the ash heap of history. During a campaign event last Thursday, May 10, in Manhattan, Cuomo said with respect to new gas-fired electric plants: “I have not approved any new ones, and I won’t.” He also said that the state currently has gas-fired plants “all over the state” and that the “long-term plan is to close them.” Breathtaking arrogance! We’ve checked the state Constitution and we don’t find anything in it that vests the governor with the power to ban specific types of businesses in the state, whether for energy or otherwise. Where does he get off?…
    Read More “NY Gov. Cuomo Says He’ll Block All New Gas-Fired Elec Plants”

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    Update on Hess’ Activity in the Ohio Utica: Completing 5 Wells

    It’s been a while–quite a while–since we’ve heard anything about Hess’ Utica drilling program. The last article we ran on Hess drilling in the Utica was in April 2016 when Hess management said that while they have “good rock” in the Utica, they would mothball their Utica operations until more pipelines are built. Looks like the pipelines are built. We spotted a story that gives new information about Hess’ plans in the Utica. They currently have 59 wells producing in the Ohio Utica. They’re working to complete another 5 previously drilled (in 2015?) wells, which will give them 64 producing wells “in the next month or so.” As for new drilling, the company will hopefully restart their program to drill new wells “hopefully in mid-2019.” Here’s what Hess’ “Utica operations area lead” guy had to say at a Kiwanis Club meeting last week in Steubenville about how much, and where, they’re drilling in the Utica…
    Read More “Update on Hess’ Activity in the Ohio Utica: Completing 5 Wells”

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    FERC OKs Start of Bidirectional Flow on Transco/Atlantic Sunrise

    On Tuesday, the Federal Energy Regulatory Commission (FERC) granted Williams’ Transco Pipeline permission to reverse the flow along part of the pipeline to begin sending more Marcellus gas south. The order allows Transco to start up modified compressor stations in Maryland, Virginia and North Carolina, and to begin flowing an extra 150 million cubic feet per day (MMcf/d) of yummy Marcellus gas southward. Most of the time when we report on Atlantic Sunrise, we talk about the greenfield (brand new pipeline) being installed in 10 Pennsylvania counties. What’s often overlooked are other aspects of the project, like this one, that will kit out the Transco to flow 1.7 billion cubic feet per day of Marcellus gas to the south and to the Gulf Coast. The greenfield portion of the pipeline is due to be completed sometime soon–by “mid-2018.” This latest order allowing the startup of bidirectional flow along certain portions is an important part of the project…
    Read More “FERC OKs Start of Bidirectional Flow on Transco/Atlantic Sunrise”

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    Dela. Riverkeeper Demands DRBC Seize Control, Block PennEast

    THE Delaware Riverkeeper, Maya van Rossum, issued a letter/petition to THE Delaware River Basin Commission (DRBC) back in February–which escaped our notice at the time. The petition demands that the DRBC “man up” and exercise complete and total authority over the PennEast Pipeline project–and stop it cold by prohibiting tree clearing. Riverkeeper maintains that if tree clearing is allowed to begin, it will negatively impact water supplies in the Delaware River Basin–therefore it’s within the DRBC’s purview, in fact responsibility, to take hold of the situation and stop it. This is just one of a many-pronged attack by Riverkeeper to try and stop PennEast, a 120-mile pipeline that will run from near Wilkes-Barre, PA to near Trenton, NJ. The planned route passes through Luzerne, Carbon, Northampton, and Bucks counties in PA, and through Mercer and Hunterdon counties in NJ. The pipeline is needed to move PA’s abundant Marcellus gas to markets in NJ. Last week we told you about Riverkeeper’s latest lawsuits to stop PennEast (see Desperate Riverkeeper Files Multiple Lawsuits re PennEast Pipe). All it would take is for one court, or one quasi-government agency like DRBC, to put a kibosh to the project, which is what Riverkeeper is so desperately trying to do…
    Read More “Dela. Riverkeeper Demands DRBC Seize Control, Block PennEast”

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    DOE Sec. Perry Hints Trump May Overrule States Blocking Pipelines

    Is there a white knight that can ride in and save the day for pipelines being blocked by radicals like Andrew Cuomo in New York State? There may just be! Last week while testifying at a House Committee on Science, Space and Technology hearing, Dept. of Energy Secretary Rick Perry said that he believes states do not have the right to block interstate pipelines. Perry stopped short of saying that President Trump would consider issuing an Executive Order to approve projects like the Constitution Pipeline and Northern Access Pipeline projects in New York. But he did appear to hint at the possibility…
    Read More “DOE Sec. Perry Hints Trump May Overrule States Blocking Pipelines”

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    PJM to Study Electric Grid “Fuel Security” of Relying on NatGas

    The trend is undeniable that coal powered electric generating plants are closing, and in their place, natural gas-fired plants are being built. In fact, natgas is also bumping off old nuclear plants, which presents a delicious dilemma for enviro freaks who have traditionally hated nukes for their waste that lasts a thousands years, yet because the electricity they produce is “carbon free” they now support nukes. Grid resiliency is the watchword. If the electric grid depends too much on a single source, can the entire grid become threatened should that source dramatically increase in price, or worse yet, dry up? What’s the likelihood of that happening? That’s what PJM, the largest regional transmission organization (RTO) in the U.S. (that oversees the electric grid in the Mid-Atlantic and Midwest) will study in the coming months. In other words, if coal plants, and nuclear plants, continue to shut down as they have been, and we’re left with mainly natural gas-fired plants in their place (as well as renewables and other sources like hydro), is that a “threat” to the entire grid?…
    Read More “PJM to Study Electric Grid “Fuel Security” of Relying on NatGas”

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    LNG Exports to Add $1-$2 Trillion to U.S. Economy by 2050

    Here are some numbers that are, frankly, hard for us to wrap our heads around. LNG Allies, a nonprofit trade group, recently issued a study they conducted showing that LNG exporters will add between $716 billion and $1.267 trillion in cumulative “direct, indirect, or induced value added” to the U.S. economy by 2050. Yes, trillion, with a “t”. During the same period of time, the study says value added to the economy from supplying the natural gas to those LNG plants (that is, all of the drilling and fracking), will be worth $948 billion to nearly (gasp) $2 trillion! No wonder President Trump is pushing hard to get more LNG export plants online. Here’s a quick overview, followed by a copy of the study/slide deck…
    Read More “LNG Exports to Add $1-$2 Trillion to U.S. Economy by 2050”