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    PA Senate Pipeline Hearing Turns into Bash ME2 Pipe; Antis Act Up

    Two Pennsylvania Senate committees–the Environmental Resources and Energy and the Consumer Protection and Professional Licensure committees–held a joint hearing on Tuesday supposedly on the topic of “pipeline safety”–but instead the hearing turned into a bash Sunoco Logisitcs and the Mariner East 2 (ME2) Pipeline hearing. A variety of witnesses testified. Unfortunately, State Sen. Gene Yaw (RINO from Lycoming County), chairman of the Environmental Resources and Energy Committee, didn’t invite Sunoco to testify, so it was a one-way bash fest. Sunoco was not allowed to respond. Thanks Gene. It wasn’t a court hearing, so we can’t call it a kangaroo court. Perhaps we can call it a kangaroo Senate hearing? While the discourse in the hearing was mostly civil (although it was nonstop bashing of Sunoco), a group of rabble rousers nearby was not. A group of 10-15 (depending on the news source) marched on Gov. Tom Wolf’s office. They were there to serve Wolf with a mock “Notice of Probable Violation and Summons,” which the malcontents say requires Wolf to appear in Chester County before families impacted by construction of ME2. The small mob was met with locked doors and Capitol Police who turned them away…
    Read More “PA Senate Pipeline Hearing Turns into Bash ME2 Pipe; Antis Act Up”

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    Philly Suburbanites Launch Class Action Lawsuit Against ME2 Pipe

    Sunoco Logistics Partners (aka Energy Transfer Parnters) has had its challenges in constructing the twin Mariner East 2 (ME2) pipelines across Pennsylvania. Earlier this month MDN told you that underground horizontal directional drilling (HDD) work in Chester County had led to a third sinkhole developing in that area (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). For most of its length, ME2 is being built right next to ME1 (Mariner East 1), a liquids pipeline originally built in 1931. The third sinkhole in Chester County exposed a portion of ME1, leading to the state Public Utility Commission temporarily shutting down ME1 (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). Now added to Sunoco’s complications, two residents living near the sinkholes in Chester County have filed a class action lawsuit against Sunoco, saying the company was negligent for using a drilling technique (HDD) not suitable for the geology in the area…
    Read More “Philly Suburbanites Launch Class Action Lawsuit Against ME2 Pipe”

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    PA Extends Tri-State Shale Coalition Agreement with OH & WV

    Let’s be honest. Pennsylvania, Ohio and West Virginia compete against each other, fiercely, to attract business to their respective states. However, in 2015 the three states agreed to lay aside their competitive natures when it comes to shale and cooperate (pool resources) for things like marketing and promotion, workforce development, transportation/infrastructure and research (see PA/OH/WV Agree to Stop Competing, Begin Cooperating on Shale). The governors of the three states signed a Memorandum of Understanding in 2015 to cooperate on shale issues. Two of the three governors are now different (in OH and WV). However, the three states have just re-signed the original statement from 2015, extending another three years to Dec. 31, 2021. Which is a good thing…
    Read More “PA Extends Tri-State Shale Coalition Agreement with OH & WV”

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    Youngstown Antis “Tilting at Windmills” with Frack Ban Ballot Measure

    Tilting at windmills by Gustave Doré

    In July 2017 MDN told you that puppets of the PA-based Community Environmental Legal Defense Fund (CELDF) had once again gotten enough signatures to put a so-called Community Bill of Rights (i.e. frack ban) ballot measure on the ballot last November in Youngstown, Ohio–for a 7th time (see Youngstown Frack Ban Vote on November Ballot – for 7th Time). The same people had tried six times before–and the ballot measure failed every single time. However, as we pointed out, the 7th time was different. In addition to the usual no fracking, no pipelines pablum, the 7th petition had language that makes it legal to break the law. If the ballot measure had passed, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. It would, in essence, legalize mob rule. Fortunately the Ohio Supreme Court had the good sense to block the 7th ballot initiative from appearing on the ballet last November (see OH Supreme Court Blocks Youngstown Frack Ban Ballot Measure). However, some antis in Youngstown just won’t give up. They’re heading back to the Ohio Supremes to ask them to reconsider and allow the ballot measure, since the court was split in its decision last year (4-3). What’s interesting is that even the local newspaper, the Youngstown Vindicator, has had enough of these these puppets of the CELDF. The Vindicator calls the ring leaders out by name in a scathing editorial…
    Read More “Youngstown Antis “Tilting at Windmills” with Frack Ban Ballot Measure”

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    Virginia Governor Moves to Bypass FERC in Regulating Pipe Projects

    Virginia Governor Ralph Northam

    Not until a few years ago when the corrupt Andrew Cuomo decided to block federally approved pipeline projects like the Constitution, and then Northern Access, did the issue of states rights verses the rights of the federal government come into sharp focus with respect to pipeline projects. At its core, it is an age-old issue. During the founding of our country the early leaders wrestled with how much control a federal government should have. We have a Bill of Rights (and a Constitution) specifically to LIMIT how much control the federal government exercises over the individual states. We support a very limited federal government. However, the founders recognized there will be times when the interests and “rights” of states clash with the federal government, and with other states. How to break a tie when deciding competing interests? Perhaps not in their wildest dreams would the founders have foreseen things like interstate highways, high tension electric lines, and yes, natural gas pipelines. Through the years our country has innovated a system based on the original founders’ vision, using agencies like the Federal Energy Regulatory Commission to oversee the permitting and permissioning of infrastructure projects like pipelines. What happens if several states want and need gas from a pipeline, but a single state stands in the way and blocks it, denying the citizens of other states the benefit of that gas? That’s why FERC was created–to referee such “wisdom of Solomon” situations. New York plunged us down the slippery slope of overturning long-established law with their lawless action in blocking FERC-permitted pipelines. Other states noticed and are now trying it themselves (like Massachusetts). The latest state to take a stab at assuming powers it doesn’t legally possess is Virginia, under a Democrat governor who plans to pass legislation that can willy nilly stop construction of federally approved pipelines like Dominion’s Atlantic Coast Pipeline…
    Read More “Virginia Governor Moves to Bypass FERC in Regulating Pipe Projects”

  • Other Energy Stories of Interest: Thu, Mar 22, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Kucinich a no-show at fake Ohio leasing forum; Atlantic Coast Pipeline cited for tree-cutting violations in Virginia; new o&g regulations coming to Hampton Twp; natgas rates going down in Altoona; Pivotal completes 1st LNG delivery to NASA; New Haven, CT goes out of its fracking mind; U.S. exported more natgas in 2017 than it imported (1st time since 1957); electricity from fossil fuels declined in 2017; asset sales in o&g accelerate; Germany’s pivot from Russian gas will be costly; and more!
    Read More “Other Energy Stories of Interest: Thu, Mar 22, 2018”

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    NY DEC Files Response re Constitution Pipe Case @ Supreme Court

    There’s a number of threads to the ongoing saga of Constitution Pipeline, a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to move Marcellus gas into New York State and from there, into New England. The Andrew Cuomo-corrupted NY Dept. of Environmental Conservation (DEC) refused to grant the pipeline necessary federal stream crossing permits, blocking construction, in April 2016 (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Constitution filed an appeal of the DEC’s arbitrary and capricious decision with the U.S. Court of Appeals for the Second Circuit, asking the court to overturn DEC’s decision. Unfortunately the Second Circuit refused (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). So Constitution appealed the Second Circuit’s rejection to the U.S. Supreme Court in January (see Constitution Pipeline Appeals NY Fight Directly to U.S. Supreme Court). The Supremes have not yet agreed to accept the case. Hoping to head off a decision to hear the case, the DEC filed a brief last week with the Supreme Court to say Constitution Pipeline has “misread” the Second Circuit’s decision,  claiming the DEC was well within their rights to issue the rejection…
    Read More “NY DEC Files Response re Constitution Pipe Case @ Supreme Court”

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    Antis Mad at DEP re Yellow Smoke at Gas-Fired Plant Near Scranton

    Antis in the Scranton suburb of Jessup just won’t leave it alone. They’re mad they can’t stop what will be the state’s largest natural gas-fired electric plant (fed by Marcellus gas) from coming online–and they’ve turned their anger on the state Dept. of Environmental Protection (DEP). As we reported two weeks ago, a puff of yellow “smoke” (more like vapor) was seen coming from the plant for a brief period of time and it sent antis into an apoplectic shock (see Gas-Fired Power Plant Near Scranton Nears Startup; Yellow Smoke and More on Yellow Smoke Coming from Gas-Fired Plant Near Scranton). According to Invenergy, the builder of the 1,480-megawatt Lackawanna Energy Center in Jessup, there were “no chemicals” involved in the yellow smoke. The only people reporting ill health affects from the yellow smoke were antis. Nobody else seems to have been affected by it. Maybe Invenergy secretly put something in the smoke that only affects antis? Inquiring minds want to know. Apparently the DEP isn’t inquiring fast enough nor deep enough for Jessup antis, who have their knickers in a twist…
    Read More “Antis Mad at DEP re Yellow Smoke at Gas-Fired Plant Near Scranton”

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    Antis Use Corruption Trial Verdict to Challenge NY Gas Power Plant

    In September 2016, MDN brought you the sad news that the former head of external affairs and government relations for Competitive Power Ventures (CPV), Peter Kelly, was indicted for bribing New York Gov. Cuomo’s long-time top aide Joseph Percoco to get state approvals for CPV’s $900 million Valley Energy Center natural gas-fired electric generating plant in Orange County, NY (see NY NatGas-Fired Electric Plant an Inside Job for Corrupt Cuomo Aide). Both Kelly and Percoco, along with a third person, Todd Howe (lobbyist who used to work for Cuomo) were indicted. The trial was recently held and a few weeks ago the verdicts came in: Both Percoco and Howe, the people close to Cuomo, were convicted. The jury could not decide on CPV’s Kelly–so Kelly skated. While the entire sordid affair is interesting for those of us who smell the foul stench of corruption that surrounds Andrew Cuomo, and while the trial and its result is interesting to MDN because of the gas-fired CPV project in Orange County, the reason we’re bringing it to your attention is because antis are using the Percoco/Howe convictions in the case to try and shut down the now-completed CPV Valley Energy Center project, claiming the plant would have never been approved without bribes and corruption…
    Read More “Antis Use Corruption Trial Verdict to Challenge NY Gas Power Plant”

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    Praying Against the Mountain Valley Pipeline in Virginia

    When was the last time you read a news story about 50 people gathering to pray…*against* an infrastructure project? Ever see or read a news story about people gathered to pray against a new highway being built? What about people who pray against construction of a new bridge? Or maybe those who pray against a new high-tension electric line coming through the area? We’ve never heard of or read any of those kinds of stories. Ever. So why does Virginia Public Radio feel compelled to publish a story about 50 people gathering to pray against the Mountain Valley Pipeline? What about the 5,000 people who live in the same area who are just fine with the pipeline? Do you think they might deserve a story too?…
    Read More “Praying Against the Mountain Valley Pipeline in Virginia”

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    New Study Says Petchem Investment in M-U Better than Gulf Coast

    This week representatives from Shale Crescent USA are in Houston, TX attending the 33rd Annual World Petrochemical Conference–and they have in hand a dynamite study that shows it’s more cost effective to build a petrochemical plant in the Marcellus/Utica region than it is along the Gulf Coast. Which is heresy if you live along the Gulf Coast. “Benefits, Risks, and Estimated Project Cash Flows: Ethylene Project Located in the Shale Crescent USA versus the US Gulf Coast” is an independent report by IHS Markit commissioned by Shale Crescent USA to evaluate and compare the financial returns and risks of a major petrochemical and plastics investment in the region with an identical investment in the US Gulf Coast. The numbers don’t lie. Here’s one juicy statistic from the newly released study: ethane (the feedstock used to make raw plastics) in our region costs 32% less than it does in the Gulf Coast region. One more factoid from the report: If the Marcellus/Utica were its own country, it would be the #3 natural gas producing country, IN THE WORLD! Our region produces more natural gas than the countries of Saudi Arabia, Iran and Qatar. Last year the Shale Crescent folks were the new kids at the World Petrochemical Conference. They were just about laughed out of the event. We have a feeling this year is going to be a lot different…
    Read More “New Study Says Petchem Investment in M-U Better than Gulf Coast”

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    Massachusetts Blocking Atlantic Bridge Pipeline from Completion

    In January 2017 the Federal Energy Regulatory Commission (FERC) granted final approval for the $452 million Atlantic Bridge expansion project (see FERC Approves Atlantic Bridge Project for New England/Canada). The Spectra Energy/Enbridge project beefs up capacity along the Algonquin Pipeline, along with more capacity for Spectra Energy’s Maritimes & Northeast Pipeline, to carry more Marcellus/Utica gas into New England and (eventually) all the way to Nova Scotia, Canada. Much of the project is now done–except in Massachusetts where a critical compressor station planned for Weymouth is stalled. The delay is causing hardships in both Maine and in Canada, due to declining offshore gas supplies. Maine needs the gas for electric generating plants. Actually, Massachusetts itself needs the gas as much as Maine–but the obtuse idiots that pretend to run the state are resisting the project because it flows an evil fossil fuel. The Massachusetts Dept. of Environmental Protection (DEP) technically has until January 2019 to complete a health impact assessment (HIA) and make a decision on whether or not to issue an air quality permit. By all appearances the DEP is taking its sweet time. If the permit is granted by DEP, Weymouth then has until June 2019 to complete an appeals process. Meanwhile, folks across the border in Maine will begin to experience rolling blackouts if they can’t find a new source of natural gas…
    Read More “Massachusetts Blocking Atlantic Bridge Pipeline from Completion”

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    FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut

    Last Thursday the Federal Energy Regulatory Commission (FERC) held an open meeting during which the commissioners “took significant action” to address the Trump tax cut legislation enacted last December. FERC wants to be sure the tax cuts coming to electric companies and pipeline companies are passed on to consumers and pipeline shippers. We are still trying to make sense of it all and frankly, we still don’t fully understand it. What we can tell you about what FERC did last week is this: 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. A good 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 (most?) MLPs don’t look like such a hot investment anymore, at least on paper. Which has caused pipeline companies, many of them with operations in the Marcellus/Utica, to issue a flurry of public announcements to say “FERC’s actions won’t impact us all that much.” The stock market certainly didn’t share that sentiment with shares (called “units”) in MLPs taking a hit since FERC’s announcement. Below is a collection of stories–bits of stories–that we’ve pieced together in an attempt to shed light on what is happening, and how it may change the pipeline business in the future…
    Read More “FERC Takes Aim at Adjusting Pipe Rates in Light of Trump Tax Cut”

  • Other Energy Stories of Interest: Wed, Mar 21, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Indiana company buys Pittsburgh pipe company; OH Democrat lawmaker proposes frack ban in state parks; Appalachian Storage Hub is WV’s foundation for future investment; feds lighten up on bird & bat rules, extend tree-cutting windows; oil drillers look to Oklahoma for cheaper prices; Wisconsin frac sand industry roars back; FERC’s Powleson lectures New England to learn from PA; big data in big oil is big business; and more!
    Read More “Other Energy Stories of Interest: Wed, Mar 21, 2018”

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    ME2 Drilling at 2 Locations Near Altoona Shut Down for Leaks

    In early March MDN reported that Sunoco Logistics’ underground horizontal drilling (HDD) work on its massive Mariner East 2 NGL pipeline near Philadelphia had resulted in several sinkholes developing (see 3rd Sinkhole Appears Near ME2 Construction in Chester County, PA). Yesterday we reported the Pennsylvania Dept. of Environmental Protection (DEP) had stopped ME2 HDD work in Lebanon County following a 50 gallon drilling mud leak (see ME2 Construction in Lebanon County Stopped for 50 Gal Mud Spill). And now, more trouble for ME2 HDD work. This time Sunoco’s work at two different locations in Blair County (Altoona area) has resulted in the DEP shutting down further HDD work at both sites. In one case, around 200 gallons of drilling mud leaked out where it wasn’t supposed to (called an “inadvertent return”)–into a wetland. In the other case, a drill pit overflowed and leaked diluted drilling fluid into the Frankstown Branch of the Juniata River. Here’s the latest in Sunoco’s series of unfortunate events…
    Read More “ME2 Drilling at 2 Locations Near Altoona Shut Down for Leaks”

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    Cove Point LNG: BP Ship Coming for 1st M-U Pickup; India Wants Swap

    “Hey Jim, what’s happening with Cove Point LNG? Didn’t you say a ship was on the way to pick up the very first cargo of Marcellus molecules?” Great question. Cove Point did see its first cargo set sail in early March (see Cove Point Ships First LNG Cargo – But Not M-U Gas). However, that first cargo was imported gas (from Nigeria) used to test the facility as part of the commissioning process. The plant chilled the Nigerian gas and loaded it onto a waiting LNG tanker and the tanker left. So yes, the plant works, but the first batch wasn’t M-U molecules, so in our book it doesn’t really count. We also told you that a second LNG tanker, called Methane Spirit, was on the way to Cove Point and would be the first ship to load and distribute M-U molecules to distant shores. Orders have changed. Methane Spirit is no longer en route to Cove Point. However, a BP-chartered ship by the name of Patris is on the way to Cove Point. Meanwhile, those who keep an eye on these things say there is currently very little feed gas (i.e. Marcellus gas) flowing into the Cove Point facility. Meaning what? Meaning it looks like the original rumor from January that Cove Point won’t be up and running, shipping Marcellus gas until April, was correct (see Uh-Oh: Cove Point LNG Exports Possibly Delayed Until April). The Patris is not due to dock at Cove Point until April 9th. Meanwhile, as India gets ready for its first contracted shipment of LNG from Cove Point, the country no longer wants it! They want to swap their Cove Point shipments with someone else. We explain it below…
    Read More “Cove Point LNG: BP Ship Coming for 1st M-U Pickup; India Wants Swap”