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    FERC Rejects Rehearing Request from Antis re MVP, ACP Projects

    Last September a group of 57 gentry landowners in Virginia and West Virginia, backed by an out-of-state Big Green group, sued the Federal Energy Regulatory Commission (FERC) in an attempt to gut the 80-year old Natural Gas Act that gives FERC the right to grant eminent domain for pipeline projects (see VA, WV Landowners Sue FERC re Pipelines, Seek to Gut Natural Gas Act). Specifically, the colluding landowners oppose Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP) that will stretch from West Virginia through Virginia and into North Carolina, and EQT’s $3.5 billion Mountain Valley Pipeline project, a 303-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The frivolous lawsuit, titled BOLD ALLIANCE, et al. v. FEDERAL ENERGY REGULATORY COMMISSION, et al., was filed in the U.S. District Court for the District of Columbia, which was the wrong court. Only FERC has jurisdiction over the projects and decisions about whether or not they can get built. If a supposedly aggrieved party disagrees with FERC’s decisions, they must first file for a rehearing, and if FERC still refuses, THEN the supposedly aggrieved party can file a lawsuit ONLY with the U.S. Court of Appeals for the District of Columbia. The suers, Big Green group Bold Alliance, filed for a rehearing with FERC. Bold Alliance tried to sidestep the law by moving forward with a lawsuit prematurely. However, the really big no-no is that they filed in U.S. District Court for DC, NOT the Court of Appeals for DC. Big difference. Here’s “the rest of the story”…last Friday FERC rejected Bold Alliance’s request for a rehearing for both MVP and ACP. So we expect the next step is that Bold Alliance will now file an appeal with the correct court, the DC Court of Appeals…
    Read More “FERC Rejects Rehearing Request from Antis re MVP, ACP Projects”

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    TransCanada Asks FERC to Expand Capacity on New England Pipe

    TransCanada is attempting to do what so far, no one else has been able to accomplish: Increase flows of Marcellus/Utica (and perhaps other basin) gas into New England. The way they’re doing it is via the Portland Natural Gas Transmission System (PNGTS), a 295-mile pipeline that spans New England from the Canadian border to pipeline connections in New Hampshire, Maine and Massachusetts. No, TransCanada is not proposing to build any new pipeline as part of their plan. In fact there is no construction of any kind for phases I and II in what TransCanada is calling its Portland XPress Project (PXP). Phase I, which TransCanada filed on April 20, asked FERC for permission to begin flowing an extra 39.8 million cubic feet (MMcf) of natural gas from Pittsburg, NH, to Westbrook, ME, and to increase the flow from and to Canada. In Phase II, which was filed yesterday, TransCanada asked FERC for permission to flow an extra 11.3 MMcf from Westbrook, ME, to Dracut, MA. When the filing for Phase III comes along, they will ask to build a new compressor station, among other bits and bobs. New England and Atlantic Canada desperately need the gas, so there’s no reason why FERC would deny these reasonable requests. Perhaps TransCanada can succeed where Kinder Morgan’s TGP Northeast Energy Direct and Spectra Energy’s Access Northeast projects failed, and boldly go where no pipeline has gone before…
    Read More “TransCanada Asks FERC to Expand Capacity on New England Pipe”

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    Snap: Va. Dems Total Crack with Reality – Call Pipelines “Death Rattle”

    A rather juvenile, kindergartenish attitude appears to be taking root in the Democrat Party–at least in the Old Dominion. Dems there have decided that wind and solar, which provide something like 2.9% of all electric generation in the country, should just take over now and that we should stop building any/all pipelines that flow evil, nasty, “yesterday’s energy” called fossil fuels. And on that self-deluding basis, a group of Dems from Roanoke and across the state signed a (blithering idiot) letter to Democrat Gov. Ralph Northam demanding that he just stop both the Mountain Valley Pipeline and Atlantic Coast Pipeline projects in Virginia–federal projects. Of course the Dems are not really THAT stupid. This is a sleazy political calculation–playing to the nutjob base that elects them. States don’t have the right to overrule the federal government. The last time Virginia tried to overrule the federal government was in 1860, and you know how that turned out…
    Read More “Snap: Va. Dems Total Crack with Reality – Call Pipelines “Death Rattle””

  • Other Energy Stories of Interest: Tue, May 8, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Northeast shale takeaway gets boost from new pipes; to Shell and back – the cracker journey over the last 6 years; crucial components for Shell cracker recently delivered; PA DEP head talks water contamination, fracking & funding; Bakken Shale comes roaring back with higher oil prices; the drive to ban oil trains in NJ will threaten public safety; shale drillers face new test as price tops $70/barrel; natgas injection season finally arrives; pipeline investments dogged by regs, tariffs, protesters and redundancy; and more!
    Read More “Other Energy Stories of Interest: Tue, May 8, 2018”

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    NFG/Seneca: Pursuing Plan B for Blocked NY Pipeline Project

    Last Friday National Fuel Gas Company (NFG), headquartered in Western New York State which operates drilling subsidiary Seneca Resources and pipeline subsidiary Empire Pipeline, issued its second quarter 2018 (everyone else’s first quarter) update. Via Seneca Resources, NFG drills wells in northcentral and northwestern PA. Via Empire Pipeline, they build and maintain hundreds of miles of pipelines. NFG wants to add to their pipeline portfolio by building the Northern Access Pipeline–a $455 million project with 97 miles of new pipeline along a power line corridor from northwestern PA up to Erie County, NY. Northern Access would allow Seneca to drill new wells in an area currently pipeline “constrained.” However, Northern Access construction has been blocked by the corrupt NY Dept. of Environmental Conservation (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). During a conference call with analysts on Friday, NFG CEO Ron Tanski outlined what we call Plan B for the Northern Access. Yes, NFG still wants to build Northern Access, but they now have an alternative. NFG recently signed an agreement with Williams’ Transco Pipeline to flow 300 million cubic feet per day (MMcf/d) of Seneca natural gas to Transco Zone 6 markets. Transco is talking with other shippers before it files to expand the existing pipeline–a project that would not be online until late 2021. If by some miracle NFG could get the corrupt DEC to change its mind and authorize Northern Access, that project would be online in 2020. Other interesting bits of news coming from last week’s update: Seneca plans to drill Utica wells on some of its existing Marcellus well pads. Seneca added a second drilling rig in 2017, and plans to add a third rig any time now…
    Read More “NFG/Seneca: Pursuing Plan B for Blocked NY Pipeline Project”

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    Eclipse 1Q18: No Comment on Process to Buy or Be Bought

    Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, issued its first quarter 2018 update last week. Eclipse has drilled the longest onshore natural gas wells in the world–in the Ohio Utica. Impressive company. In March the company announced it is looking for someone to buy, or (more likely) for someone else to buy them (see Eclipse Resources Board Considering Either Merger or Acquisition). Eclipse CEO Ben Hulburt began the quarterly analyst phone call last week by anticipating questions about the buy/be bought process. He shut down any questioning before it began by saying: “I hope you can understand, because of the nature of this process, we will not be able to address any questions relating to it or discuss it further during today’s call.” So what did Ben discuss? The company drilled 8 wells in 1Q18. They completed (fracked) the company’s first PA Utica well. And he took time to toot the company’s own horn (deservedly so). Eclipse drilled 8 of Ohio’s 10 most productive Utica oil wells in 4Q17. The company has a talent for drilling very long, and very productive wells…
    Read More “Eclipse 1Q18: No Comment on Process to Buy or Be Bought”

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    WV DEP Lifts Block on Rover Pipeline Construction

    The vast majority of Rover Pipeline is done, and most of it is now up and running (see FERC Allows Rover Pipeline Startup in Michigan, Close to 100% Done). But there are a few spots here and there where small sections are still not complete. One of those is in West Virginia. In March, the WV Dept. of Environmental Protection (WVDEP) slapped Rover with a “cease and desist” order, stopping all construction of Rover in the state, because of inspections that found 14 violations of water pollution regulations (see WV DEP Orders Rover Pipe to Stop Construction for Violations). The violations occurred in Doddridge, Tyler and Wetzel counties. Violations ran the range of leaving trash behind at construction sites to improper perimeter controls (no erosion devices installed) to failure to clean up the roads they used. The good news is that last Wednesday, WVDEP told Rover they can now resume construction…
    Read More “WV DEP Lifts Block on Rover Pipeline Construction”

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    Grandma Red Comes Down from Tree After Judge Orders $1K/Day Fine

    Theresa “Red” Terry (whom we call Grandma Red) and her daughter Minor Terry finally came down from the trees where they were perched since April 2 in an illegal attempt to block Mountain Valley Pipeline (MVP) from cutting the trees. They came down on Saturday after a federal judge said if they stayed past midnight Saturday, they would each be fined $1,000 per day. The money would go to MVP. Red said, “Mountain Valley has taken enough from us…There wasn’t a lot more I could do up there besides show my ass and give them money.” As we previously reported, a number of Virginia lawmakers expressed their support of the Terrys and their flagrant disregard of the law (see Virginia Democrat Lawmakers Side with Lawbreakers in MVP Protest). A crowd of 100 or so gathered on Saturday, complete with six packs of beer, to watch the spectacle of Grandma Red coming down to earth. A sycophantic press was there to fawn all over Red and her daughter…
    Read More “Grandma Red Comes Down from Tree After Judge Orders $1K/Day Fine”

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    PennEnvironment Wants Fossil Fuel-Powered (i.e. Electric) Buses

    Last Thursday the radical Big Green group PennEnvironment released a “study” that claims PA should move to adopt electric buses, instead of all other alternatives (like compressed natural gas) because electric buses are (supposedly) more environmentally friendly. We understand the argument about replacing diesel-powered engines to lower the amount of nasty stuff that enters the air. But PennEnvironment’s argument to use electric buses is as much about reducing mythical global warming as it is reducing diesel emissions. And here’s the thing PennEnvironment doesn’t tell you (and what their Big Green supporters are too dull to figure out themselves): electricity comes from somewhere. It’s not magic. It’s produced. In PA, as of January 2018, 54% of all electricity is produced either by coal or natural gas-fired plants. Another 40% is produced by nuclear plants. How much electricity is produced in PA by all those gigantic windmills you see when sailing down the Pennsylvania Turnpike, along with solar? A measly 2.9%. So how “clean” are electric buses, really? Put another way, the majority of what powers electric buses is good old fossil fuels. Does PennEnvironment know they’re advocating for more fossil fuel use? Meanwhile, the Wolf administration (surprisingly) continues to invest in CNG buses, which is the smart thing to do…
    Read More “PennEnvironment Wants Fossil Fuel-Powered (i.e. Electric) Buses”

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    Canadian Lowball Shipping Works, Grabs Market Share from U.S.

    TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal in 2016 to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada from the NEXUS and Rover pipelines (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price by 46% to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. Following a couple of open seasons and stiff regulatory hurdles, the plan was adopted and went into service last November (see TransCanada Pipe Begins Lowball Shipping to Compete with Marc/Utica). In February of this year, TransCanada announced a $1.9 billion plan to expand its Western Canadian pipeline system in a bid to gather up and send even more Western Canadian gas to the East Coast (see TransCanada Spending $1.9B to Bring More Canadian Gas to Northeast). Looks like TransCanada’s gamble paid off. According to records from the U.S. Dept. of Energy, Canada is using more of their own homegrown gas and less gas from the U.S….
    Read More “Canadian Lowball Shipping Works, Grabs Market Share from U.S.”

  • 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”