Long Island Town Votes to Allow New Gas-Fired Elec Plant

Caithness Energy is a privately held company that specializes in buying or building (and operating) renewable energy and natural gas-fired power plants. We’ve written about a number of gas-fired generating projects they own or are involved with, over the years (see our Caithness stories here). Caithness owns a 350 megawatt natgas-fired power plant in Yaphank, NY–on Long Island. For more than four years Caithness has had a plan to build a second natgas-fired plant next to the first. The original plan was for a 750 MW plant, later scaled back to 600 MW. Local leaders in Brookhaven Town in which the existing and proposed power plant projects sit has been against the plan for a new power plant. The town passed restrictions in 2015 that tied the hands of Caithness, making the project impossible to build. As recently as May of this year, members of the town board expressed their doubts about the new project. But then, all of a sudden, the board reversed course and last Thursday voted to repeal the 2015 restriction that limits the type of equipment Caithness can use in building the plant. No, it’s not a ringing endorsement and it’s not full approval of the plan (many more local and state hoops will have to be jumped through). But it certainly signals a change of heart by town leaders…
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The NEXUS Pipeline project, owned by DTE Energy and Spectra Energy (Enbridge), is being sued by a farmer in Stark County, OH. NEXUS is a $2 billion, 255-mile interstate pipeline that runs from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. The Stark County farmer signed an easement with NEXUS in 2016. Construction began earlier this year. In late March, a lawyer hired by the farmer sent NEXUS a letter telling the company of erosion at the farm, due to their digging activities. The farmer estimated about $23,000 of damage at the time. But, according to the lawsuit, NEXUS didn’t fix the problem and that led to more damage–now up to $55,000 worth. The problem is that topsoil on the farm has been washed away. The farmer wants it replaced. If true, it certainly seems like a reasonable request to us. The farmer isn’t demanding millions of dollars, just the cost to replace soil swept away by NEXUS-related digging…
Joe Kelliher, executive vice president of NextEra Energy, is also the former Republican chairman of the Federal Energy Regulatory Commission under George W. Bush. Testifying before a Senate committee last week, Kelliher said New England doesn’t need new interstate natural gas pipelines to be built. Kelliher parrots language we’ve heard antis use–that New England’s pipeline system is adequate for “all but 12 days of the year.” For years pipeline companies (and grid operators) have been warning that without new pipelines to the region, New England is heading for rolling blackouts when temps get severe. So why would Kelliher take the opposite view at the hearing? Because his company, NextEra Energy, profits from lack of pipelines in the region! Kelliher is not a disinterested party in these matters. In 2016 we told you about NextEra and two other companies that were actively lobbying against new pipelines (see
Over the years the Nature Conservancy, whose mission is “to conserve the lands and waters on which all life depends,” has put its support behind restrictive, anti-drilling measures. However, they’re not typically one of the Big Green groups that actively goes out of its way to block all fossil fuel extraction. They’re not as bad as the Sierra Club, or NRDC, or Earthworks. In what is perhaps a new chapter in cooperation with the industry (sure to get them tossed off the Christmas card list by other Big Green groups), the Nature Conservancy worked with eight of the largest pipeline companies in the U.S. (all but one with operations in the Marcellus/Utica) to produce a report titled, “Improving Steep-Slope Pipeline Construction to Reduce Impacts to Natural Resources” (full copy below). The report’s aim is to provide a list of best practice aimed at reducing the environmental impacts of natural gas pipeline construction. Particularly in areas prone to landslides. Working with Nature Conservancy on the report was Dominion Energy, Enbridge, EQT Midstream Partners, Kinder Morgan, NiSource, Southern Company Gas, UGI Energy Services and Williams–all of which have committed to adopting the guidelines put forth in the report. Notice that Nature Conservancy’s approach is not “never build another pipeline again”–as it is for most Big Green groups (including the ones we listed above). Instead, Nature Conservancy worked with pipeline companies to develop standards and practices that will protect the environment, while still allowing for pipeline construction. That is, they are being reasonable. Hats off to the Nature Conservancy for their efforts and reasonableness. Unfortunately for them, they are now sure to be ostracized by their Big Green brethren…
In January Dominion Energy announced a deal to buy out and merge in South Carolina-based SCANA Corporation (see 
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Rig count drops in OH Utica as production rises; turnaround in WV construction jobs thx to shale; WV state officials must work to protect China deal; spotlight on Chevron’s head of Marcellus/Utica, Stacey Olsen; MDN called out by Athens News for supporting Scott Pruitt; America’s oil & gas boom is spreading; the future of energy is U.S. natgas; cybersecurity threats growing; FERC denies LNG approval delays; Trump & Putin; and more!
TransCanada’s Leach XPress is a 160-mile natural gas pipeline (and compression facilities) located in southeastern Ohio and West Virginia’s northern panhandle. Leach XPress flows 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky–hence the name. The pipeline went online January 1st, and a section of it exploded and burst into flames on June 7 (see 
Yesterday our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. The Marcellus/Utica region (called Appalachia in the report) continues to see production go through the roof. As has been happening for the past 6 months or so, production in the Marcellus/Utica region will grow another 1/3 billion cubic feet (Bcf) in the coming month. It’s simply amazing! Our region adds another 1 Bcf/d every three months now. With no end in sight. If you add up new gas production for all seven major plays, the U.S. will produce an additional 1 Bcf/d in August. That’s 1 Bcf more in August than it produced in July. Mind blowing. No less impressive is U.S. oil production from shale. In last month’s report, EIA said oil production would grow 141,000 barrels. This month? Oil production will grow ANOTHER 143,000 barrels per day! Once again, new records for gas (and oil) will be shattered in August…

Pennsylvania Gov. Tom Wolf’s Dept. of Environmental Protection (DEP), the agency charged with overseeing oil and gas drilling in the state, “blindsided” the shale industry in February with a proposal to hike the fee required when submitting an application to drill a new shale well (see 