• Marcellus & Utica Shale Story Links: Wed, Jan 10, 2018

    The “best of the rest”–stories that caught MDN’s eye over the break that you may be interested in reading. In today’s lineup: Interview with CRSD’s Susan LeGros; NY Gov. Cuomo’s latest energy proposals try to cut down natgas; rig count stands at 21 in OH Utica; Arctic blast send natgas prices through the roof in North Carolina; California municipalities may have committed securities fraud in targeting Exxon; corporate raider Carl Ichan still hassling SandRidge Energy; utilities cut rates, credit Trump tax reforms; Agility Gas gets patent for ethylene shipping on LNG carriers; Germany scraps 2020 climate change targets because they won’t meet them; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Jan 10, 2018”

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    FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid

    On September 29, U.S. Energy Secretary Rick Perry sent a letter to the Federal Energy Regulatory Commission (FERC) directing the agency to complete action on a “Grid Resiliency Pricing Rule”–ostensibly within 60 days. The proposed rule Perry proffered, sometimes referred to as the Notice of Proposed Rulemaking (NOPR), would put in place regulations that favor electric generating plants powered by coal and nuclear. That is, it would allow unprofitable ventures to pass along new costs, making them profitable–in the name of protecting the electric grid. The theory Perry (and by extension President Trump) subscribe to is that if the free market drives out coal and nuke plants, the electric grid would be “vulnerable” to far fewer sources to power it. If coal and nukes are all but gone, and all of sudden there’s a natural gas shortage, or prices spike for natural gas, it would endanger the electric supply in this country. On one side of the argument are those who believe the free market sometimes needs a helping hand (via regulation), and on the other those who believe the free market will sort it all out and we are not vulnerable. The incoming/new chairman of FERC, Kevin McIntyre, asked for an extension so he and another new FERC member could take a little time to do a proper review (see Kevin McIntyre Sworn in as 5th FERC Commissioner, New Chairman). The review is done and yesterday all five FERC commissioners voted unanimously to reject Perry’s Grid Resiliency Pricing Rule. However, as a consolation prize, FERC launched an effort to formally canvas electric grid operators, compelling them to respond with details of their plans for grid resiliency. It’s a small bone to coal and nuclear, but a bone nonetheless…
    Read More “FERC Rejects Trump DOE Plan to Favor Coal & Nukes re Electric Grid”

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    DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation

    In September, MDN told you that the obsequious members of the Delaware River Basin Commission (DRBC) had slavishly obeyed their radical environmental masters by voting to move forward with a permanent ban on fracking in the Delaware River Basin (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The final ban language/regulation was dropped like a bomb by DRBC staff on Nov. 30 (see DRBC Drops Permanent Frack Ban Bomb – Public Hearings in January). In dropping their bomb, the DRBC said (with no proof) that fracking “poses significant, immediate and long-term risks” to the waters in the basin. Then they declared, by fiat, that “High volume hydraulic fracturing in hydrocarbon bearing rock formations is prohibited within the Delaware River Basin.” However, they also said (in the fine print) that water from the Delaware River Basin can be used by frackers in other locations–which sent antis like THE Delaware Riverkeeper into apoplectic shock. The DRBC announced they would allow public comment, via written communication, through Feb. 28. They also planned four public hearings (i.e. freak shows) to allow antis the opportunity to parade before the microphones and make jerks of themselves (we’ve seen it many times). Antis said three months wasn’t enough time to crank up the form letter machine nor is it enough freak show opportunities (see Enviros Tell DRBC Not Enough Freak Shows Scheduled on Frack Ban). True to form, the DRBC has, once again, caved to the only constituency they listen to: anti-drillers. Yesterday the DRBC announced they will extend the public comment period from Feb. 28 to Mar. 30, and they will add another two freak show public hearings to the roster…
    Read More “DRBC Schedules More Freak Shows on Proposed Frack Ban Regulation”

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    Williams Marcellus Buildout Leads to Record Transco Pipe Volumes

    Transco Pipeline Map – click for larger version

    Williams’ Transcontinental Gas Pipe Line (Transco) is the largest natural gas pipeline (by volume pumped) in the United States. Transco and its various branches stretch from the Texas Gulf Coast all the way to New York City. As MDN previously reported, Transco completed five important expansion projects in 2017: Gulf Trace, Hillabee Phase 1, Dalton, New York Bay, and Virginia Southside II (see Transco Pipeline Update: 5th Expansion Done, More Coming 2018). Because of those expansions, Transco flowed a record-breaking, all-time high of 15.58 million dekatherms (15.58 billion cubic feet, or Bcf) of natural gas in a single day–on Jan. 5, 2018. That’s approximately 20% of all the natural gas consumed in the entire country on that day. Amazing! Two more important expansion projects that are part of the Transco system are due to complete construction and go online in 2018: Atlantic Sunrise Pipeline and Garden State Phase II. Atlantic Sunrise will feed 1.7 Bcf/day of Marcellus Shale gas from northeastern PA into the Transco system, moving it south. As an interesting aside, Cabot Oil & Gas will provide 1 Bcf/d out of the 1.7 Bcf/d on Atlantic Sunrise when it’s completed (see FERC Approves Atlantic Sunrise Pipeline! Cabot Grabs More Capacity). Here’s the Williams statement about their recent Transco record-breaking day…
    Read More “Williams Marcellus Buildout Leads to Record Transco Pipe Volumes”

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    New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy

    In February 2015, Philadelphia-based economic consulting firm Econsult Solutions released a study looking the potential economic impact of the Mariner East 1 & 2 projects, concluding the two project together would result in $4.2 billion coming to Pennsylvania (see New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA). However, projects like Mariner East change over time. Econsult revisited and revamped their original study to reflect those changes. Know what they found? ME1 & ME2 together will result in over $9 billion of economic impact in PA! How could it be that much? Just consider, the two projects together will have created 57,000 direct, indirect and induced jobs between 2014 and 2019 (9,500 jobs annually) with earnings of $2.7 billion impacting multiple industries. And that’s just the jobs piece of the puzzle! Although total economic impact will exceed $9 billion, the pipeline will continue to generate revenue for PA state coffers for years into the future, via taxes and by feeding the petrochemical industry in the Philadelphia area. It’s not $9B total–it’s $9B initially. Sadly, the PA Dept. of Environmental Protection last week halted all work on Mariner East 2, delaying the economic benefits of the project in PA (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). Let’s hope ME2 resumes work quickly. In the meantime, we have a copy of Econsult’s new report below, along with comments by antis who ignore the hard science in front of their faces that the Mariner pipelines are a bonanza for PA…
    Read More “New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy”

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    Minuteman Seeks Justice Against Kathleen Kane & PA AG’s Office

    One of the companies in the Marcellus industry targeted for extinction by Pennsylvania’s former Attorney General, Kathleen Kane, was Minuteman Environmental Services (see PA’s Anti-Drilling AG Charges Minuteman with Enviro Crimes). Minuteman was a Pennsylvania company serving the shale industry with several different businesses. In 2014, Kane orchestrated what can only be called a terror attack on Minuteman and its owner Brian Bolus and his family (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Kane’s vendetta against Minuteman was one of the most egregious examples of her abuse of power while she was AG. Kane’s attack on this small business literally drove it out of existence–they finally went bankrupt. One of the charges Kane used against the owner of the business, Brian Bolus, is that he illegally added his mom and dad to the health insurance plan for the company, even though they were not employees. Fantastically, Kane went after mom and dad, charging them with health care fraud! That charge, along with other charges, were dropped in 2016 (see Former PA AG Kathleen Kane’s Vendetta Against Marcellus Co Over). In fact, out of the original 83 charges (56 charges being felonies), 81 of the charges have been dropped. The final two charges–misdemeanors (barely above a traffic ticket in the pecking order), go to trial this month and will (hopefully) also be dropped. It has taken four, long, years for Bolus and Minuteman to be exonerated legally. During that time, Kane herself was tried and convicted for committing perjury–a felony–and removed from office (unrelated to the Marcellus industry). Kane and the AG’s office caused extreme harm to Brian Bolus and his family–reputationally, and economically. Nothing can ever make up for the years and loss of reputation and forcing a company to go bankrupt, throwing hundreds of people out of jobs. However, there is *something* can be done. Bolus has filed a lawsuit (copy below) against Kane and the AG’s office and some of the people in the AG’s office that maliciously targeted him and his company. He’s demanding a jury trial–to help right the extreme wrong that’s been done…
    Read More “Minuteman Seeks Justice Against Kathleen Kane & PA AG’s Office”

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    Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC

    Last week we noticed the large merger/acquisition by Dominion Energy in buying South Carolina-based SCANA Corporation. We didn’t think much of it at the time. SCANA is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. In other words, the local electric and gas company for much of South Carolina. Dominion is a big company with many operations–they are a pipeline company, an electric generating company, and a utility company (like SCANA). The merger makes sense–Dominion gets to grow and add more customers to its utility business. We didn’t think there was a tie-in with the Marcellus/Utica region, which is why we haven’t (until now) brought you the news about Dominion’s $7.9 billion all-stock purchase of SCANA. However, there is a big potential connection to the Marcellus/Utica. You may recall we brought you news in early December that Dominion and their partner in the Atlantic Coast Pipeline (ACP) project Duke Energy are considering expanding the original ACP to more locations in North Carolina, AND expanding the pipeline into South Carolina (see Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC). Dominion is now openly saying that the SCANA purchase makes it more likely they will push to expand ACP into SC–meaning even more Marcellus/Utica gas could be flowing to Dixie…
    Read More “Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC”

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    NY Moves Forward with Fracked Gas Microgrid in Middle of Albany

    Last May, New York Gov. Andrew Cuomo announced plans to construct a new “state-of-the-art, locally-sourced mini-power grid” that will connect to the statewide electric grid but will also be able to operate independently, to power the Empire State Plaza in Albany–a complex of buildings in downtown Albany housing much of New York State government (see NY Gov Cuomo Building New Fracked Gas Elec Plant to Power Albany!). The energy-efficient microgrid, which will be powered by fracked natural gas from Pennsylvania, will supply 90% of the power for the 98-acre downtown Albany complex, and is expected to save the Plaza more than $2.7 million in annual energy costs. The project will also remove more than 25,600 tons of greenhouse gases from the atmosphere each year – the equivalent of taking more than 4,900 cars off the road – supporting New York’s goal to reduce emissions by 40 percent by 2030 from 1990 levels. In an emergency, it can power a shelter for Albany residents. As we pointed out at that time, Cuomo building a fracked-gas-powered microgrid is just about the ultimate in hypocrisy. He blocks fracking in NY, and he even blocks the pipelines needed to flow gas from PA into NY. But hypocrisy doesn’t bother Lord Cuomo. The project is on track to select a contractor by the end of March, and begin construction by the end of this year. The plan is to have the new natgas-fired microgrid up and running by the end of 2019…
    Read More “NY Moves Forward with Fracked Gas Microgrid in Middle of Albany”

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    PA DEP Adopting New Rules for Gas Wells Located Near Coal Mines

    In December, the Pennsylvania Dept. of Environmental Protection (DEP) released “interim final technical guidance” (i.e., new regulations) for drilling Marcellus Shale natural gas wells in areas where there is longwall coal mining. Sometimes drillers want to lease and drill under coal mines. Since coal mines sink large holes in the ground, there are existing guidelines in place for how closely an oil/gas well can be drilled on or under a coal mine–guidelines put in place in 1957. As a result of legislation passed in 2011 called Act 2, a review was conducted to see if the standards for oil/gas drilling near coal mines might be modified, allowing such drilling to happen in conditions not currently allowed. A study was performed and in January 2017 the DEP rejected that study–preferring to keep a default ban on any drilling under coal mines for the time being (see PA DEP Rejects Revisions to Regs re Drilling Near Coal Mines). Since that time the DEP has continued to work on the issue and has now produced guidelines it thinks can safely allow shale drilling under coal mines, at least in certain circumstances. The DEP issued their interim final guidelines back in December and will accept public comment until Jan. 31 of this year. After that, the DEP will make final tweaks and slap a “done” sticker on it. We have a copy of the interim guidelines below, which may affect some of our shale drilling subscribers…
    Read More “PA DEP Adopting New Rules for Gas Wells Located Near Coal Mines”

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    Fracker Keane Group Doubles Line of Credit from $150M to $300M

    Frackers are in big demand. However, it takes a lot of cash to operate a fracking business. Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. Keane has just doubled its line of credit and can now tap up to $300 million in cold, hard cash–if it needs it. In January 2016, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. The buyout, and Keane’s hard work, bore fruit. In December 2016, the privately-held company announced it will go public with an initial public offering (IPO) of stock, hoping to raise $287.5 million with the IPO (see Oilfield Services Co. Keane Group Floats $288M IPO). Then in May 2017, Keane announced it is expanding again, buying out fracker RockPile Energy Services for $284.5 million (see Fracker Keane Group Continues Expansion, Buys RockPile Energy). Keane continues to do well and has proven to its bankers that the company has enough assets to warrant an increase in their line of credit…
    Read More “Fracker Keane Group Doubles Line of Credit from $150M to $300M”

  • Marcellus & Utica Shale Story Links: Tue, Jan 9, 2018

    The “best of the rest”–stories that caught MDN’s eye over the break that you may be interested in reading. In today’s lineup: Dominion donates $1 million to charity; NY town to vote on law banning wind energy development; Woody Thrasher gets West Virginian of the Year award for China deal; what happens when you don’t build natgas pipelines?; six months later Dakota Access Pipe proves its value; still a shortage of frac services in shale; energy sector predictions for 2018; the “great crew change” coming in O&G; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jan 9, 2018”

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    Attorney for Anti Group CELDF Fined $52K for “Bad Faith”

    Tom Linzey, the attorney who founded and runs the Community Environmental Legal Defense Fund (CELDF), has just been sanctioned by Federal Judge Susan Paradise Baxter and ordered to pay $52,000 to Pennsylvania General Energy (PGE) for his “bad faith” in continuing to press legal arguments on behalf of Grant Township (Indiana County, PA)–legal arguments that say the people of Grant have rights they actually don’t have. Linzey has continued to claim rights for the citizens of Grant that have no legal basis and have been discredited in court. Not only that, but Judge Baxter also referred the matter to the Disciplinary Board of the Pennsylvania Supreme Court with a request that they review Linzey’s actions with an eye to imposing more punishments against him. We’ve previously reported on the story of two Pennsylvania towns that were either hoodwinked, or perhaps willing led astray, by the radical CELDF into passing (now overturned) bans on fracking and injection wells in their towns–Highland Twp (Elk County) and Grant Twp (Indiana County). The two townships thought they would do an end-run around the state’s authority to issue permits for two injection wells–one in each township, by re-incorporating under so-called home rule charters. The towns essentially declared themselves independent of the state for a variety of matters, including oil and gas permits, which PA state law clearly says is a function of ONLY the state Dept. of Environmental Protection. In March, the DEP issued final permits for the injection wells AND sued each town to get those portions of their home rule charters, dealing with oil and gas, overturned (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). Both towns eventually backed down (see 2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells). However, in May, Grant’s attorneys (i.e. Linzey) filed a counter-claim against PA asking Commonwealth Court to recognize a sort-of extra-judicial set of rights the town can exercise over top of, or in addition to, state laws–instead of their previous position of trying to replace state laws (see CELDF Continues to Agitate Against Indiana, PA Injection Well). The company building the injection wells, PGE, has been economically harmed by the actions of the towns and attorney Linzey, and sued to recoup costs. This decision in part satisfies that lawsuit. The judge, in very strong language, is punishing Linzey for his continued, intentional abuse of the legal system. We note she is not punishing the towns but rather Linzey…
    Read More “Attorney for Anti Group CELDF Fined $52K for “Bad Faith””

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    Russian LNG Coming to Boston to Alleviate NatGas Shortage?!

    This is so wrong on so many levels. Our blood pressure went through the roof when we spotted a story that a shipload of Russian-produced LNG (liquefied natural gas) is almost certainly coming to Boston and will be delivered on Jan. 22nd. We suspect it may be an illegal shipment. Here’s what happened. The LNG tanker Christophe de Margerie loaded a shipment of LNG at Russia’s Yamal LNG plant–in the Russian Arctic–delivering it to the UK at the Isle of Grain terminal in Kent. The LNG was offloaded and stored, but not pumped into the UK grid. Instead, officials said the LNG would be resold to a higher paying customer. A few days later the tanker Gaselys loaded LNG from the same terminal in Kent. While those who own the shipment won’t say, it’s almost certain the LNG they loaded was the very same LNG unloaded a few days prior–from Russia. Gaselys is coming to America–to unload the Russian LNG in Boston, because New England is natural gas starved at the moment due to the ongoing cold snap. Why not just bypass the unloading/reloading process and ship direct to the U.S.? Because the U.S. slapped the Yamal LNG plant with sanctions following Russia’s moves against the Ukraine. It’s illegal to receive gas produced from that plant. So the people involved “whitewashed” the gas by unloading in Kent, and then pretending they’ve reloaded different gas molecules from the same facility. It’s a farce. Fake. Fraud. The gas coming to Boston is Russian gas. The reason New England needs gas so bad is because of their elected leaders, like Massachusetts Attorney General Maura Healey and Massachusetts Sen. Elizabeth Warren–both of whom adamantly oppose new natural gas pipeline projects in their state that would deliver cheap Marcellus/Utica gas to the region. Massachusetts residents should rise up against Healey and Warren for their actions which now mean New England is paying our ENEMIES for natural gas. How screwed up is that?…
    Read More “Russian LNG Coming to Boston to Alleviate NatGas Shortage?!”

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    Shale Wastewater Treatment Plant Planned for Potter County, PA

    A new shale wastewater treatment facility that works in tandem with a local sewage treatment plant may be on the way in Coudersport (Potter County), PA. Epiphany Water Solutions, via a subsidiary company called Epiphany Allegheny, filed for a permit to build a centralized water treatment facility in Coudersport in July 2017. The initial application with the Dept. of Environmental Protection (DEP) was deemed “incomplete”–so Epiphany filed again and this time the application was complete. The DEP will hold a Jan. 16 public hearing in Coudersport to gain local resident’s input on the facility. This is not the first we’ve heard of Epiphany. They were one of four winners of the Ben Franklin Institute’s Fifth Annual Shale Gas Innovation Contest in 2016 (see 4 Winners Bag $80K at 5th Annual Shale Gas Innovation Contest). Epiphany started life as a company with a mission to pioneer the use of solar technology to desalinate water so people in poor countries have safe drinking water. Laudable goal. However, Epiphany found they actually need to turn a profit and pay bills first–and their technology works equally well for the oil and gas industry. CONSOL Energy (now CNX Resources) was an early backer and user of their technology. JKLM Energy, owned by Buffalo “Marcellus” Bill’s owner Terry Pegula and with active drilling in Potter County, needs a better way to dispose of frack wastewater. So Pegula turned to Epiphany and Epiphany is working with the Coudersport Area Municipal Authority (CAMA) to make it happen…
    Read More “Shale Wastewater Treatment Plant Planned for Potter County, PA”

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    Former Ormet Site in SE OH Changes Hands, Gas-Fired Plant Coming

    Rendering of the 485 MW power plant at the Long Ridge Energy Terminal

    Back in 2014 MDN told you that the former Ormet aluminum plant in Hannibal (Monroe County), OH had been purchased out of bankruptcy by Niagara Worldwide and turned into the Center Port Transload Facility, with an emphasis on providing services for the Marcellus/Utica industry (see Center Port Transload Facility Already Up & Running in OH). In April 2017, we brought you news about plans to build a 485-megawatt Utica gas-fired electric plant at the Center Port location (see More on Gas-Fired Elec Plant Coming to Center Port Terminal). A lot has happened since that time. Most of the facility (not all) changed hands again, selling to Fortress Transportation and Infrastructure for $30 million last June. Since that time, what was called Center Port Terminal has been renamed–to Long Ridge Energy Terminal. The new owners are moving forward, quickly, with plans to build the gas-fired power plant, which is now called the Hannibal Port Power Project. According to the Long Ridge website, the Hannibal Port Power gas plant will be operational by 2020–meaning construction will begin this year…
    Read More “Former Ormet Site in SE OH Changes Hands, Gas-Fired Plant Coming”

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    Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits

    Last year the pressure was intense to pass a severance tax in Pennsylvania to help fill a budget gap. The severance tax issue in PA is a political football–a promise made by current Gov. Tom Wolf to pay off teacher’s unions in Philadelphia for voting him into office. During the budget machinations, traitorous Republicans in the PA Senate caved to pressure and in July passed a budget bill that hikes taxes on lots of things, including a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). As part of the Senate’s misguided and mangled budget bill, Republicans slipped in fixes to the state Dept. of Environmental Protection’s chronic delays in issuing permits related to shale drilling (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). As we said at the time, the writing was already on the wall–Democrats would lobby to remove the DEP fix and leave the severance tax. The DEP fix (surprisingly) continued in further revisions to the budget plan–until October, when the DEP fixes came out (see Latest PA Budget Bill Drops Fix for Slow DEP Permit Reviews). Although the fix came out, the severance tax came out too and was never passed (thank God for small miracles). But problems remain for Marcellus drillers. Delays are long in the Keystone State when it comes to permits for shale wells. The problems need to get fixed. So PA House Rep. Greg Rothman (Republican from Cumberland County) has just introduced a standalone bill to fix the problem. Predictably, enviro nuts and Democrats are lining up to oppose the fix…
    Read More “Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits”