• Other Energy Stories of Interest: Mon, May 7, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Lawrence County students build, demo gas and oil rig; PA’s Dem lt. gov. candidates hate pipelines; union welders come out to support Williams NESE pipe project; Cabot buys equipment for NEPA fire companies; irreconcilable differences over PA severance tax; Permian natgas prices collapsing as production takeaway hits capacity limit; radical enviros put people last, destroy habitats and wildlife to end fossil fuels; XTO moving its HQ to Exxon’s Houston office; will oil prices go higher if Trump axes Iran nuke deal; and more!
    Read More “Other Energy Stories of Interest: Mon, May 7, 2018”

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    Sunoco’s ME1 Pipe Restarts, ME2 Pipe Pays Another $355K in Fines

    On March 3, the Mariner East 1 (ME1) natural gas liquids (NGL) pipeline was suddenly switched off by order of the Pennsylvania Public Utility Commission (PUC) after a sinkhole opened up under the pipeline in Chester County, exposing some of the bare steel to the open air (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). Sunoco Logistics Partners, the owner of ME1, is building a new set of pipelines called Mariner East 2 (ME2) close to the existing ME1 pipeline. Construction work in the area on ME2 led to the sinkhole that exposed ME1. The PUC asked Sunoco to drill holes and pour concrete in them to firm up ME1, which Sunoco did (see PA PUC Asks Sunoco to Drill Holes, Pour Concrete to Firm Up ME1). A full two months after ordering ME1 turned off, costing Sunoco (and Range Resources) millions of dollars in lost revenue, the PUC told Sunoco they could restart ME1. As of today, propane and ethane have resumed flowing through ME1. But what The Almighty State grants with one hand, it takes away with the other. Although Sunoco paid a massive $12.6 million fine in February to the Dept. of Environmental Protection related to ME2 construction misadventures (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction), yesterday the DEP assessed Sunoco *another* $355,622 penalty for more ME2 misadventures–what DEP calls “violations of the Clean Streams Law”…
    Read More “Sunoco’s ME1 Pipe Restarts, ME2 Pipe Pays Another $355K in Fines”

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    CNX Resources 1Q18: Record High Production as Utica Skyrockets

    Yesterday CNX Resources, formerly CONSOL Energy, released its first quarter 2018 update–its first full 3-month update since separating from the coal company. CONSOL began life as a coal company 150 years ago and only in recent decades entered the oil and gas business. The company split itself into coal and oil/gas back in November (see CONSOL Energy Split Done – Meet “New” Gas Driller CNX Resources). So 1Q18 is the first full quarter as a standalone o&g company for CNX. And what a quarter it was! Production of everything–gas, NGLs and oil, called “equivalent” was 129.5 billion cubic feet equivalent (Bcfe) in 1Q18, which works out to be 1.4 Bcfe per day–an increase of 36% over 1Q17. Production from Marcellus wells (gas and liquids), which is the majority of CNX’s wells, was up 14%. However, production from CNX’s Utica wells was up a huge 184% over 1Q17. Utica volumes (43.5 Bcfe in 1Q18) are rapidly catching up to Marcellus volumes (65.9 Bcfe in 1Q18). Here’s the latest from CNX…
    Read More “CNX Resources 1Q18: Record High Production as Utica Skyrockets”

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    Shale Industry Outlines Case Against Latest PA Severance Tax Plan

    As we reported earlier this week, Pennsylvania Gov. Tom Wolf, who has been lauded as the most liberal governor in America, once again pushed for a Marcellus-killing severance tax (see Broken Record: Wolf, Dems & RINOs Float 4% Severance Tax). Since Wolf stood flanked by two Republican and two Democrat lawmakers earlier this week in announcing a pair of new severance tax bills, mainstream media has continuously run the headline of a “bipartisan” effort. What they don’t tell you is that the two RINOs who stood with Wolf are just about the only ones who support this lunacy. As must happen with each renewed effort by Wolf to steal money from the industry to hand it over to teacher unions in Philadelphia (which IS the purpose of the severance tax, we are not engaging in hyperbole), the industry must launch a counter-offensive. The shale industry, in remaining vigilant, has published a number of comments and columns to set the record straight. We must tell the truth about Wolf’s proposed severance tax. Stepping up the plate to do so is the Marcellus Shale Coalition (MSC), the Pennsylvania Independent Oil & Gas Association (PIOGA), and the American Petroleum Institute of PA (API-PA). Here, in their own words, is the response to Wolf’s “four year bad idea”…
    Read More “Shale Industry Outlines Case Against Latest PA Severance Tax Plan”

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    Va. State Senator Suing Forest Service for Blocking Illegal Protests

    There is nothing mysterious or complex about the actions taken by a Virginia State Senator, Chap Petersen (Democrat from the swamp, the D.C. area). Petersen is a lawyer and has just sued the U.S. Forest Service because the Forest Service is blocking a road in the Jefferson National Forest, which is their RIGHT to do (they manage it), because down that gravel road are several ILLEGAL TRESPASSERS who refuse to come down from trees that need to be cut down to make way for the federally-approved Mountain Valley Pipeline. There’s nothing complex in understanding that Petersen (did we mention he’s a Democrat?) supports lawlessness and anarchy. Imagine that, a lawmaker who supports people that break the laws he makes. How idiotic is that? Here’s the story of how Virginia Dems in high places continue to flout the laws of our country in their quest to retain political power (and contributions) by currying favor with radical Big Green supporters…
    Read More “Va. State Senator Suing Forest Service for Blocking Illegal Protests”

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    Another Look at “Rule of Capture” Case that Threatens PA Marcellus

    MDN brought you important news in April that the Pennsylvania Superior Court had handed down a decision (known as the “Briggs” case) that has the power to greatly restrict, perhaps even stop, Marcellus drilling in PA (see PA Superior Court Overturns “Rule of Capture” for Marcellus Well and PA “Rule of Capture” Case has Power to Limit Marcellus Drilling). The issue, in brief, is that the Superior Court decision disallows using an age-old principle called the “rule of capture” when it comes to shale drilling and fracking. It opens the door to a myriad of frivolous lawsuits claiming that a fracture, a crack created during fracking, is draining gas from a neighbor’s property without justly compensating the neighbor for the gas. Southwestern successfully argued in a lower court that the odd crack here and there that may slip under a neighbor’s property is permissible. The landowner appealed to Superior Court and three judges heard the case. Southwestern, following the decision, petitioned the Superior Court to have all of the sitting justices (called en banc) hear the case (see Southwestern Appeals “Trespass” Case to Entire PA Superior Court). No word yet on whether the Superiors will do it. In the meantime, we spotted an article by the ace lawyers at the Blank Rome law firm discussing the case and its implications. We can’t stress enough just how critical this case is to the future of drilling in Pennsylvania, which is why we bring you the following…
    Read More “Another Look at “Rule of Capture” Case that Threatens PA Marcellus”

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    1Q18 Midstream Potpourri: Williams, MarkWest, Summit, Tallgrass

    Every three months publicly traded companies, including those with major operations in the Marcellus/Utica, issue a required quarterly update for stockholders. It’s often referred to as “earnings season.” We like to cull through the updates to share items of interest with MDN readers. For drilling companies we dedicate an entire post to each company. We typically don’t cover midstream (i.e. pipeline) companies as much. However, there are a number of important projects cooking with companies like Williams, MarkWest Energy (MPLX), Summit Midstream and Tallgrass (REX Pipeline). We culled through the press releases and analyst phone call transcripts to pick out comments and portions that we think are helpful in understanding where some of these important projects are, and how they impact the bottom line of said companies. Below is our 1Q18 midstream potpourri…
    Read More “1Q18 Midstream Potpourri: Williams, MarkWest, Summit, Tallgrass”

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    Americans Being Duped by Russians into Opposing Pipelines

    This story should make every patriotic American good and angry–at how Russia continues to try to defeat the American shale miracle (for Russia’s own selfish economic reasons). And it should make anti-fossil fuelers ashamed at how easily they’re played (and how stupid they really are), to fall for the propaganda campaigns run by Russia against American shale energy. An article recently appearing on the McClatchy news service exposes how Russian operatives, using false identities on Twitter and other social media platforms, convinced a handful of stupid anti-fossil fuelers in Miami to turn up at a fake rally, and then a Russian television network swooped in to film it, circulating that footage, convincing even more antis to organize and rise up against the Sabal Trail pipeline. It was a resistance movement generated whole cloth from nothing by Russia. All in an effort to get the pipeline shut down. Which may now happen! Bottom line: a bunch of stupid American antis allowed themselves to be played by Russians against their own country. Russian money also pours into groups like the Sierra Club via offshore accounts. The Sierra Club turns around and uses that money to oppose American infrastructure projects in the oil and gas industry. Call Robert Mueller! Somebody needs to investigate!…
    Read More “Americans Being Duped by Russians into Opposing Pipelines”

  • Other Energy Stories of Interest: Fri, May 4, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Crawford County CNG fueling station opens; Broome County admits solar farm deal was bad; Green, OH hosts town hall to discuss NEXUS pipe safety; power plant projects invest $4.6B in Mahoning Valley; Susquehanna County training kids for careers in the gas fields; anti-frackers hope to fool Youngstown voters with lies; for 40 years Hollywood tried to kill nuke energy–now its trying to save it; natgas to flow to Scugog Island; China is getting better at fracking; and more!
    Read More “Other Energy Stories of Interest: Fri, May 4, 2018”

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    Chesapeake Energy 1Q18: M-U Dominates with 45% of Production

    Yesterday Chesapeake Energy, now the #2 natural gas producer in the U.S. (after EQT), released its first quarter 2018 financial and operational update. The company reported 1Q18 profits of $268 million, up 257% from the $75 million in profits during 1Q17. The key for increased profits was an increase in production while lowering costs. As we scanned over the numbers, one thing stood out for us: 26% of Chesapeake’s production comes from the Marcellus Shale, and 19% comes from the Utica. Add them together (45%) and no other region comes close. M-U success is Chesapeake’s success. It shows just how key the M-U region is for the mighty Chesapeake. During 1Q18 the company drilled and placed into production 10 wells in the Ohio Utica and 6 wells in the PA Marcellus. 2Q18 plans are to drill and bring online 7 Utica wells and 17 Marcellus wells. However, Chesapeake’s head has been turned. Their primary 2018 focus appears to be the Texas Eagle Ford Shale–an oil play. The company is currently running 5 drilling rigs in the Eagle Ford. They drilled and brought online 23 Eagle Ford wells in 1Q18, with plans to drill and bring online another 50 wells in 2Q18. Chessy has fallen and fallen hard for the siren song of oil. Here’s the latest from the #2 natural-gas producing company in the U.S. that now loves oil…
    Read More “Chesapeake Energy 1Q18: M-U Dominates with 45% of Production”

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    PTT Buys Another 300+ Acres for Belmont County, OH Cracker

    In yet another very good sign that the proposed PTT Global Chemical ethane cracker plant in Belmont County, OH is headed for a positive final investment decision (FID), PTT has just purchased another 300+ acres to go along with the previous acreage they purchased as the site for the future cracker/petrochemical project. Last July MDN reported PTT had spent $13.8 million to buy 168 acres at the proposed site for a second Appalachia ethane cracker, in Belmont County, OH (see PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). That site, the former R.E. Burger power plant property (owned by FirstEnergy Corp.), is the primary location for the proposed cracker. However, more land is needed. A deed filed earlier this week shows that PTT has purchased another 300+ acres for $17.5 million from the Ohio-West Virginia Excavating company. Together, both parcels are roughly 500 acres, which is more than enough land for the facility. Until now numbers like $6.5 billion have been thrown around as the total project cost. The number has now gone up–to as much as $10 billion! Here’s the latest good news that it’s looking better and better for a second ethane cracker in Appalachia…
    Read More “PTT Buys Another 300+ Acres for Belmont County, OH Cracker”

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    FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29

    Click for larger version

    Last October MDN brought you details about the proposed $86 million Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. Two school districts in Ohio where the pipeline will traverse agreed to reduce the amount of property tax the pipeline would need to pay by 75% over a 15-year period, a huge vote of confidence (see Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio). We have an update on the project. On Tuesday, the Federal Energy Regulatory Commission (FERC) said it will issue an environmental assessment (EA) for the project on or by June 29th. Both the U.S. Army Corps of Engineers and the Pennsylvania Fish and Boat Commission are “cooperating agencies” and part of the EA review process. Following the EA, the clock will begin ticking and FERC will have until Sept. 27th to make a final decision about the project…
    Read More “FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29”

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    New Bills Limit PA DEP Permit Appeals, Reduce Enviro Judge Terms

    As we reported yesterday, Big Green radicals in Pennsylvania are grumpy that the PA House passed five bills meant to fix the dysfunctional PA Dept. of Environmental Protection (see PA House Passes 5 Bills to Fix Broken DEP, Environuts React). Conservative Republicans in the House continue to play offense (which we love). On Monday of this week, PA Sen. Camera Bartolotta (R-Washington) sent around a memo to fellow House members asking them to co-sponsor two new bills she plans introduce. The first bill will narrow the grounds on which a DEP-issued permit may be appealed. Antis love to file endless appeals of permits for drilling and pipelines, dragging out the process in hopes of eventually defeating a given project. The first bill will fix that. The second bill reduces the terms of sitting Environmental Hearing Board judges. If a judge has been on the bench for 10 or more years, their term will expire and they will not get a chance to continue. The second bill is aimed at draining the EHB swamp (pun intended). Both bills are common sense measures, and of course, Big Green radicals are already howling at the moon because of them…
    Read More “New Bills Limit PA DEP Permit Appeals, Reduce Enviro Judge Terms”

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    Antis Weaponize PA Enviro Rights Amendment in Effort to Kill Shale

    AR-15 rifle

    The Pennsylvania Environmental Rights Amendment (ERA), passed by the good citizens of PA in 1971, is a poorly worded piece of legislation with good intentions, adopted in a hurry in response to a disaster. Like all legislation that’s hurried and adopted in response to disasters (natural or man-made), the ERA is deeply flawed. Antis are now using the ERA as a bludgeon–perhaps a better analogy is more like an AR-15 semi-automatic rifle–in their attempt to assassinate the Marcellus Shale industry. Unfortunately, they are having some success in the PA court system. The ERA laid dormant after its adoption until an awful PA Supreme Court decision in 2013 breathed new life into it for antis (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). Since that time, antis have sued drillers and pipeline companies a number of times, citing the ERA, and in some cases winning (see PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev). Emboldened by these wins, “Article 1, Section 27” as the ERA is known, is being employed in more places, even (especially) outside the court room…
    Read More “Antis Weaponize PA Enviro Rights Amendment in Effort to Kill Shale”

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    Home Rule Chaos Reigns in NY – Towns Vote to Block Wind, Solar

    In June 2014, New York’s highest court, the Court of Appeals, reaffirmed two lower court rulings that empowers townships and municipalities across the state to strip away property owners’ rights to allow drilling and other energy projects (see Shale Drilling in NY is Over – High Court Upholds Town Bans). NY’s high court ruled in the “Middlefield” and “Dryden” cases that local municipalities have the right to regulate energy development within their jurisdictions–where it can and cannot happen. The seeds planted with the “Dryden” and “Middlefield” cases has sprouted and is now in full bloom–like spring daffodils. So-called “renewable” energy projects are now being blocked using the very same decisions meant to block natural gas drilling–delicious irony that puts a big, fat smile on our face. On the other hand, it points out the truly horrific consequences by NY’s highest court in allowing each community to, in effect, regulate energy production. It is utter folly and lunacy. Welcome to New York…
    Read More “Home Rule Chaos Reigns in NY – Towns Vote to Block Wind, Solar”

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    Study: The Closer People Live to Fracking, the More They Like It!

    You might think people who are not leased and live close to shale drilling activity, that is, those with the most “impacts” from that activity, would be the ones most opposed to it. However, you would be wrong. That’s according to a new study just published by the ultra liberal Oregon State University. A study appearing in monthly peer reviewed academic journal Risk Analysis titled, “The Effect of Geographic Proximity to Unconventional Oil and Gas Development on Public Support for Hydraulic Fracturing,” finds that the closer you live to shale drilling, even those who are not leased, the more supportive of it they are. Why is that? Because they understand it–they’re more familiar with it. MDN has spoken to residents in Susquehanna County, PA who live close to drilling yet are not, themselves, drilled on/under. Their opinion? Sure they’d like it if they got money. After all, they incur the impacts (trucks, noise, lights, dust), but don’t directly benefit with money in their pockets. Yet, when asked if they had a choice and could wave a magic wand so there never would have been drilling, the answer is swift and universal: NO! They still prefer nearby drilling, because it benefits their neighbors and, to some degree, the community at large via tax revenue and charitable contributions. Here’s news of a study that proves the closer you are to drilling, the more you like it…
    Read More “Study: The Closer People Live to Fracking, the More They Like It!”