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    Free Pipeline Training Course in April in SWPA & Eastern OH

    The Gas Technology Institute (GTI) has previously offered a 100% free training program for those interested in a career building pipelines in the Marcellus/Utica region (see 4-Wk FREE Training Program Helps Unemployed Get M-U Pipeline Jobs and Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA). GTI is offering the same training program once again in April, at two locations: Armstrong County Industrial Development Council in Freeport, PA, and Belmont College in St. Clairsville, OH. Each location is limited to 20 students. If you are interested and live somewhere within driving distance of either location, what are you waiting for? Sign up before all slots are taken! Starting salaries for graduates “often exceed $50,000” and can lead to careers with salaries in the six-figure range (hey, where do we sign up?!). We have the details of how to enroll for FREE in this valuable training course–a course worth $3,500…
    Read More “Free Pipeline Training Course in April in SWPA & Eastern OH”

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    Riverkeeper, Big Green Groups Want FERC to Bend Rules for Them

    We are a country governed by the rule of law. Part of our system of laws (for better or worse) invests government bureaucracies with delegated power to make rules and regulations–which carry the weight of law. Children who are not disciplined (at home and at school) grow up to be adults who think silly things like rules don’t apply to them–because they don’t want them to. THE Delaware Riverkeeper falls into that camp. The Federal Energy Regulatory Commission (FERC) has rules and regulations in place to keep the agency from descending into chaos in reviewing and approving pipeline projects. One of FERC’s rules, which has been on the books for years, is that if a person or group wants to “intervene” (become an intervenor) in a project, they must file with FERC “in a timely manner.” FERC sets the amount of time, which varies with each project. It’s been our observation FERC gives at least 30 days, sometimes more, for folks to file to intervene. One of the sleazy strategies used by Riverkeeper is to get thousands of individuals (including children) to sign up as intervenors for a project in a quest to flood and overload the FERC system, slowing or stopping progress on a given project (see FERC Confirms “Intervenors” Slowing Down Pipeline Approvals). FERC has had enough. FERC commissioners have voted to tighten up the loosey-goosey way FERC has treated people and groups who file late to intervene. No more bending of the rules. In the past, Riverkeeper and others have filed to intervene weeks after the deadline for such action, and FERC has just added them as intervenors anyway. No more. Either Riverkeeper and their ilk file on time from now on, or they won’t be considered intervenors, which has them hopping mad…
    Read More “Riverkeeper, Big Green Groups Want FERC to Bend Rules for Them”

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    Tallgrass Energy Eliminating MLP – First “Casualty” of Tax Cut?

    Last week MDN brought you the news that the Federal Energy Regulatory Commission (FERC) had taken “significant action” to address the Trump tax cut legislation enacted last December (see FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut). FERC wants to be sure the tax cuts coming to electric companies and pipeline companies are passed on to consumers and pipeline shippers. The agency proposed new solutions to eliminate “tax loopholes” for natural gas pipelines. Closing these so-called loopholes will eliminate certain tax benefits for MLPs–master limited partnerships. Many pipeline companies (most) are organized as MLPs, which allows tax advantages to flow to investors. With certain tax benefits for MLP unitholders on the chopping block, all of a sudden some MLPs don’t look like such a hot investment anymore, at least on paper. Some analysts have speculated this may be the beginning of the end for MLPs. A few years ago Kinder Morgan got rid of all it’s MLP subsidiaries, combining them all into a single “C” corporation. Now, Tallgrass Energy, builder/operator of the mighty Rockies Express (REX) pipeline which flows Marcellus/Utica gas, is doing the same as Kinder did. Which causes us to ask the question, is Tallgrass’ MLP the first “casualty” of the Trump tax cut among pipeline companies?…
    Read More “Tallgrass Energy Eliminating MLP – First “Casualty” of Tax Cut?”

  • Other Energy Stories of Interest: Thu, Mar 29, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Hilcorp files for new drilling permits in Columbiana County, OH; FirstEnergy files to close 3 nuke plants in OH, PA; FERC scolds Rover over missed deadlines; bogus petition with 70K signature filed protesting pipelines in Virginia; LNG supplier helps fund Greensburg, PA shelter; Texas sinkholes from o&g drilling; why $3 natgas continues to elude the market; Chesapeake Energy is not “desperate” to sell assets; media ignores real Russian meddling–in U.S. energy markets; Saudis & Russians tag-team to fend off American shale; and more!
    Read More “Other Energy Stories of Interest: Thu, Mar 29, 2018”

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    MVP Pipeline Cleared to Begin Building Pipeline in Virginia

    In January, MDN reported that Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA–had received permission from the Federal Energy Regulatory Commission (FERC) to begin tree clearing and construction of access roads and construction yards in five West Virginia counties (see Mountain Valley Pipe Gets FERC Approval to Begin WV Construction). That was MVP’s very first permission to begin construction-related activities. It was the trickle. The flood gates burst open in February when FERC issued four new orders granting MVP permission to continue not only tree clearing and building roads, but also to begin construction of the actual pipeline itself in WV, and tree clearing/preliminary construction activity in VA (see FERC Grants MVP OK to Begin Pipeline Construction in Virginia & W.V.). The activity in VA was in just one county (Giles) and in one location. MVP still could not construct pipeline in VA pending required state permits. The situation in VA fundamentally changed this week. On Monday, the VA Dept. of Environmental Quality (DEQ) issued erosion, sediment and storm water control permits for the project–meaning actual pipeline construction can now begin. And yesterday, FERC granted MVP permission to construct pipeline not only in Giles, but also in Craig, Montgomery and Roanoke counties. MVP is now fully authorized in VA and there’s no stopping it…
    Read More “MVP Pipeline Cleared to Begin Building Pipeline in Virginia”

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    A (Very) Rough Method for Calculating Royalties on Cabot Wells

    Cabot Oil & Gas, one of our favorite Marcellus drillers, has just published a new PowerPoint slide deck presentation as part of an investor’s conference they attended earlier this week (the Scotia Howard Weil Energy Conference). Normally a new slide deck isn’t all that big a deal. However, thanks to MDN friend Chris Acker who pointed it out to us, there is some new information in the deck worthy of note. Back in December MDN brought you the news that Cabot had signed a deal to sell off their Texas Eagle Ford Shale assets in order to concentrate solely on the Marcellus (see Cabot O&G Sells Texas Eagle Ford Assets for $765M, Focus on Marc.). The slide deck notes that the Eagle Ford divestiture closed on Feb. 28th (slide #3). Also in the slide deck is a mention that Cabot plans to experiment with drilling “upper Marcellus” wells in the second half of 2018 (slide #11). Most (all?) of the wells they’ve drilled to date are “lower Marcellus.” A successful program of drilling upper Marcellus certainly bodes well for existing landowners with existing lower Marcellus wells–perhaps Cabot will revisit those pads to drill new wells? Slide #11 has some great information on it. We’ve used it to create a (very) rough royalty estimation calculator for Cabot landowners…
    Read More “A (Very) Rough Method for Calculating Royalties on Cabot Wells”

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    Antero Res. Considers Mining its Own Frac Sand to Cut Costs

    If you hang around the business world long enough (as we have), you notice certain trends. One such trend from yesteryear is companies integrating up and down the supply chain. Like when a widget manufacturing company buys the company that supplies it the raw materials used to make the widgets. Example: a car manufacturer buys the company that supplies it with plastic dashboards–and then buys the chemical company that produces the plastic to make the dashboards. And then the same car company, on the other side, buys the credit union that makes the loans to buy their cars! The company becomes integrated. But then the pendulum swings and in recent years, the trend has been about dis-integrating–spinning things off into their own self-contained units. Better to focus on one thing and do it well, rather than be like GE and spread yourself around to multiple industries and specialties. In the oil and gas world, Chesapeake Energy once owned its own oilfield services company (Chesapeake Oilfield Services)–which they later sold. One thing you don’t hear much about is shale companies vertically integrating and buying suppliers. However, Antero Resources, one of the biggest and best drillers in the Marcellus/Utica, is actively considering such a move. Antero wants to buy its own frac sand company as a way of controlling costs. Is it a good idea, or a bad idea?…
    Read More “Antero Res. Considers Mining its Own Frac Sand to Cut Costs”

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    Cove Point LNG Gets Ready to Ship First Marcellus Molecules in Apr

    Patris LNG tanker

    In early March Dominion Energy’s Cove Point LNG plant shipped its first-ever load of LNG (liquefied natural gas), although the gas itself was imported from Nigeria, used in testing the plant (see Cove Point Ships First LNG Cargo – But Not M-U Gas). Last week MDN told you that a BP-contracted LNG tanker, Patris, is on the way to Cove Point but will not dock until April 9th (see Cove Point LNG: BP Ship Coming for 1st M-U Pickup; India Wants Swap). The Patris will be the first ship to carry Marcellus molecules from the facility to distant shores. It now looks like we have confirmation, of a sort, that indeed the Patris will dock and load Marcellus LNG on April 9. That confirmation comes from Platts, which reports that on Monday feed gas (from the Marcellus) spiked up to 640 million cubic feet per day (MMcf/d), which is “the highest level in more than three weeks” of gas flowing into the facility. Here’s the latest on our continuing watch of Cove Point, a true game-changer for the Marcellus, and for companies like Cabot Oil & Gas that will send gas to the facility…
    Read More “Cove Point LNG Gets Ready to Ship First Marcellus Molecules in Apr”

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    PA DEP Stops ME2 Drilling in Huntingdon County for < 1 Gal. Spill

    Sunoco Logistics Partners has had its share of problems in building the Mariner East 2 (ME2) twin NGL pipelines that run from eastern Ohio all the way to Marcus Hook, near Philadelphia. The main issue with construction of the pipeline has been underground horizontal directional drilling (HDD)–drilling under things like roads and bridges and streams and rivers–places where you can’t just dig a trench to lay pipeline. Some early problems with HDD caused the Pennsylvania Dept. of Environmental Protection (DEP) to shut down all ME2 HDD work (indeed all work period) for an extended period in January (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). After Sunoco agreed to pay the DEP a whopping $12.6 million “fine” (i.e. shakedown money), the DEP allowed work to resume in February (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction). While doing ME2 HDD work in Huntingdon County last week, Sunoco contractors reported less than one gallon of non-toxic drilling mud (bentonite) went missing–it came back out of a hole it didn’t go down. And because of that, the DEP has shut down all work at the site…
    Read More “PA DEP Stops ME2 Drilling in Huntingdon County for < 1 Gal. Spill"

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    PA Court Tells SWPA Town Can’t Restrict MarkWest Compressor Stn

    Cecil Township

    Cecil Township (Washington County, PA) is one of the original seven selfish towns that sued Pennsylvania over the 2012 Act 13 oil and gas law, a law that replaced a mishmash of local zoning ordinances governing oil and gas activity with one uniform, and fair, set of state regulations. Cecil and the other selfish towns won their case on appeal with the PA Supreme Court (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). Although Cecil (and other towns) have been zealous in using their authority to zone out drilling and pipeline activity, sometimes they go too far, as Cecil has done. The PA Commonwealth Court ruled last Friday that Cecil exceeded their authority by “imposing a slew of conditions” (26 conditions!) on a proposed MarkWest Energy compressor station planned for the municipality, a plant first proposed back in 2010…
    Read More “PA Court Tells SWPA Town Can’t Restrict MarkWest Compressor Stn”

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    Yale Study Claims Ohio Utica Fracking Causes STDs

    What a shame that a university with one of the best reputations in the world, Yale, has sunk this low–to pedal yet another so-called study that claims where there is fracking in the Ohio Utica, there’s also a higher incidence of sexually transmitted diseases (STDs) like gonorrhea and chlamydia. This isn’t the first “fracking causes STDs” study. Antis have issued these “studies” for years (see MDN coverage here). This latest study by Yale “researchers” was published in an online journal with no standards, PLOS ONE. Other bought-and-paid-for anti-fracking “science” has been published by the PLOS ONE research-mill (see a list of other fake studies bashing shale appearing in PLOS ONE). PLOS ONE is a favorite place to publish research that can’t meet the rigorous review process of real journals. Here’s the latest substandard anti-drilling “research” from the Yale School of Public Health…
    Read More “Yale Study Claims Ohio Utica Fracking Causes STDs”

  • Other Energy Stories of Interest: Wed, Mar 28, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: UGI looks to combine gas divisions into one unit; PA unions throw their political weight behind natgas; Wellsville Intermodal facility may qualify as national Opportunity Zone; India looks to swap LNG cargoes from Sabine Pass; India sells Texas shale assets for $100M; US LNG exports quadrupled in 2017; and more!
    Read More “Other Energy Stories of Interest: Wed, Mar 28, 2018”

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    Eclipse Resources Board Considering Either Merger or Acquisition

    Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, has just done it again. The company has drilled another massively long onshore lateral–19,335 feet long–in the Ohio Utica. It’s not the longest onshore lateral in the world (currently the Eclipse Outlaw well, at 19,600 feet), but this one comes close. Although drilling a new super lateral is big news, there was other news that (for us) is even bigger: Eclipse issued a statement yesterday that says, in part, the company “has initiated a process to evaluate and consider a full range of potential strategic, operational and financial alternatives to maximize shareholder value.” Eclipse hired investment firm Jefferies LLC and international law firm Norton Rose Fulbright to help with the process. Both firms specialize in mergers and acquisitions (M&A). The statement also says, “There is no assurance that the review by the Board will result in a transaction or other strategic alternative,” which we interpret to mean Eclipse is looking either to buy another company (like EQT did with Rice Energy), or sell itself to another company (like Rice Energy did to EQT). That’s our take on this seemingly innocuous announcement. Big news indeed!…
    Read More “Eclipse Resources Board Considering Either Merger or Acquisition”

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    PA Appeals Court Rules ME2 Pipe NOT Under Local Zoning

    The entire panel of judges sitting on Pennsylvania’s Commonwealth Court, an appeals court in PA, ruled yesterday that zoning regulations in a local municipality–in this case Middletown (Delaware County)–do NOT supersede the state Public Utility Commission when it comes to regulating Sunoco Logistics Partners Mariner East 2 (ME2) NGL pipeline. In May 2017, six anti-pipeline residents living near where the ME2 pipeline will pass asked the Middletown town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. The town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped-up, agitated and funded by Big Green groups filed a lawsuit against ME2, to force it to conform with Middletown’s ordinance (see 6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe). The lawsuit was filed in the the Delaware County Court of Common Pleas. The judge dismissed the case in June, so the antis, again funded by Big Green groups, appealed the case to the next higher court, Commonwealth Court. An “en banc” panel (meaning all of the judges) heard the case, indicating its high importance. The en banc panel ruled yesterday, against the Middletown residents…
    Read More “PA Appeals Court Rules ME2 Pipe NOT Under Local Zoning”

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    Coudersport Council Votes to Oppose Frack Wastewater Facility

    In January MDN told you that a new shale wastewater treatment facility that works in tandem with a local sewage treatment plant is on the way in Coudersport (Potter County), PA (see Shale Wastewater Treatment Plant Planned for Potter County, PA). Epiphany Water Solutions, via a subsidiary company called Epiphany Allegheny, plans to build a centralized water treatment facility in Coudersport to process brine coming from shale wells drilled by JKLM. That has brought out the antis who make all sorts of wild accusations. The main accusation is that brine contains radioactivity and that even processed water will contain some radioactivity and will, over time, affect the stream or river where it is released (in this case the Allegheny River). A Seneca Indian tribe that lives 65 miles downstream opposes the project claiming radioactivity will pollute them. Epiphany has pushed back against false claims of radioactivity in their processed water (see Spirited Defense of Proposed Potter County Shale Wastewater Plant). However, real science and facts have fallen on deaf ears. Coudersport Borough Council, which has NO jurisdiction over the facility nor over the Coudersport Area Municipal Authority’s sewage treatment plant that plans to dispose of the processed wastewater, voted last week to go on record opposing Epiphany’s plan. Epiphany says the vote is meaningless and the plant will get built, with or without Coudersport Council’s so-called approval…
    Read More “Coudersport Council Votes to Oppose Frack Wastewater Facility”

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    W Pike Run Antis Want 1000′ Setback to Zone Out EQT Drilling

    A debate is playing out in West Pike Run Township in Washington County, PA (near Pittsburgh) that we find interesting. A quick PA history lesson: Back in 2012 PA passed the Act 13 law to update oil and gas regulations to account for shale drilling. One of the updates was a uniform set of zoning requirements to protect residents and the environment. Unfortunately, seven selfish townships sued and eventually won (at the PA Supreme Court) challenging those regulations. So PA towns won the right to impose restrictions on drilling activities. In West Pike Run, the debate is over “setbacks”–how far does a well have to be from nearby structures, like homes and barns and businesses. State law imposes a minimum of 500 feet from the wellhead to an “occupied” structure–and 300 feet from the well to a body of water. In West Pike Run, antis want to up that number to 1,000 feet, which would effectively prevent any more drilling by EQT, the primary driller in the township. The town recently held a hearing on the proposed 1,000 foot setback, a hearing which has been continued to a future meeting on April 16…
    Read More “W Pike Run Antis Want 1000′ Setback to Zone Out EQT Drilling”