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    Energy Transfer Wants to Build New Compressor Station in SWPA

    New Sewickley Township (Beaver County), PA

    In June 2015, MDN reported on an important new project in the Marcellus/Utica being built by Energy Transfer Partners (see ETP Announces $1.5B Revolution Pipeline/Plant Project in SWPA). The project, dubbed the Revolution Project, includes a 100-mile gathering pipeline system in Butler County, PA (lots of wet gas to move), along with a new cryogenic gas processing plant to be constructed “in western Pennsylvania”–which we later discovered is in Washington County, PA. The original plan was to have the cryogenic processing plant (in Washington County) up and running by 2Q17. That didn’t happen. We spotted a story from September last year which said it was due to go online “later this year”–meaning by the end of 2017. Is it online now? We don’t know/couldn’t find out. Possibly. What we do know is that the cryogenic plant will separate the wet gas into methane and NGLs, and that the NGLs will hitch a ride on the Mariner East 2 Pipeline all the way to Marcus Hook. That’s the plan. The pipeline itself that gathers and sends wet gas to the cryogenic processing plant has one compressor station to compress the gas and send it on its way. However, Energy Transfer wants to build a second compressor station to assist. And they want to build it now, as in right now, before summer, in New Sewickley Township (Beaver County)…
    Read More “Energy Transfer Wants to Build New Compressor Station in SWPA”

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    PA’s Uneven Tax Treatment of Marcellus Industry vs. Amazon HQ2

    What if a private company wanted to locate in a state, bringing with it 243,000 direct and spin-off jobs with an average salary of $93,000? And what if that company invested billions of dollars in the state economy? No doubt the state (and local municipalities) would offer up plenty of incentives to ensure they get the business. Pittsburgh and Philadelphia (and the State of Pennsylvania) are doing just that–offering up all sorts of incentives to attract Amazon to build its HQ2 project in the Keystone State–a project that promises a huge investment and thousands of employees. However, Amazon’s HQ2 will not employ 243,000 people and inject billions–not anywhere close. But there is an industry that is ALREADY doing exactly what we’ve outlined in the opening sentence. The Marcellus Shale industry has created 243,000 direct and indirect jobs (with an average salary of $93K per year) and has already pumped billions of dollars into the economy. And yet the State of PA and places like Pittsburgh and Philly are, in many ways, fighting against the industry! They don’t offer tax breaks, instead they offer new tax increases! What’s going on here? Why does PA treat Jeff Bezos and Amazon one way, and the Marcellus industry another? Why does PA pick “winners” and “losers” economically? That’s the important topic of a column we recently spotted by Lowman Henry, chairman and CEO of the Lincoln Institute…
    Read More “PA’s Uneven Tax Treatment of Marcellus Industry vs. Amazon HQ2”

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    Obtuse NY Assemblywoman from Ithaca Proposes “No-Tenancy” Bill

    Barbara Lifton

    Ithaca, NY is unfortunately saddled with an Assemblywoman who is, charitably, not too bright. Assemblywoman Barbara Lifton is a virulent anti-fossil fueler, even though she herself uses fossil fuels each and every day of her life. She was dead set against converting a coal burning plant near Ithaca into burning natural gas (see Cayuga Power Plant Stays Open (Burning Coal) – Thx to Fractivists). Thanks (in large part) to Lifton, the residents of Ithaca continue to breathe dirty air. She also tried to stop a federally permitted natgas pipeline from expanding in the region (see NY State Legislator Tries to Derail Dominion New Market Project). And now she’s at it again. Even though there is no shale drilling in New York, apparently Lifton wants to drive the final nail in the coffin of the conventional drilling industry too, driving out all oil and gas activity in the state. Lifton has introduced a bill that we call “no-tenancy.” You’ve been reading about West Virginia’s co-tenancy bill here on MDN, a bill that would allow rights owners in property to sign a lease if 75% or more of the owners agree to lease terms. It corrects a situation where dozens, sometimes hundreds of people who own a fractional share in property can’t be found, or refuse to sign, screwing all of the other owners of the property. Lifton’s bill, A2499, would require 100% of all rights owners to sign leases “for oil, gas or mineral rights, and any modification, extension or renewal thereof.” It is plainly meant to end any future drilling of any kind in the state. That’s the aim. The Independent Oil & Gas Association of New York (IOGANY) is pushing back…
    Read More “Obtuse NY Assemblywoman from Ithaca Proposes “No-Tenancy” Bill”

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

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: How’s the Rice Energy into EQT merger going?; Antero appoints new member to Board; Crawford/Venango counties get new natgas buses; East Coast natgas prices hit all-time highs during cold snap; law prof says California climate change lawsuits are a for-sure loser; EIA says ethane consumption, exports will increase this year; frac sand shortage threatens shale boom; Cheniere talks with Panama Canal about more LNG shipments; and more!
    Read More “Other Energy Stories of Interest: Wed, Feb 21, 2018”

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    XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated

    Last Thursday XTO Energy was drilling a fourth Utica Shale well on the Schnegg well pad near Captina Creek (York Township, Belmont County, OH) when XTO “lost control” of the well and it exploded and caught fire. There were 24 people working at the well pad at the time. Fortunately, none of them were injured. Following the explosion and fire, 36 nearby homes and farms (around 100 people) were evacuated. So far the evacuees have not been allowed to return, although that may change today. XTO is putting them up at nearby hotels in St. Clairsville, Moundsville and Wheeling. Crews have worked to try and keep the brine gushing from the well from reaching Captina Creek. XTO hired Wild Well Control to put out the fire (which happened quickly). XTO has also hired Cudd Energy Services to cap the well. Three wells on the pad that were producing have been shut down for the time being. Below is the chronology of the explosion and aftermath, as it happened. This story is still unfolding, now five days later…
    Read More “XTO Energy Utica Well Explosion in Belmont County – 100 Evacuated”

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    PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline

    Once again, in what appears to be a pattern, the Pennsylvania State Dept. of Environmental Protection (DEP) is caving to pressure from virulent anti-fossil fuelers. This time in regard to Shell’s proposed Falcon Ethane Pipeline project. Shell is working on an ethane “pipeline system” with two “legs” to feed the mighty cracker plant being built in Monaca, Beaver County (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Last October Shell filed an application with the PA DEP for the PA portions of the pipeline, some 60 miles of the total system (see Shell Files PA Application for Ethane Pipe to Feed Cracker Plant). The DEP advertised an official comment period for the project on Jan. 20, giving interested parties until Feb. 20 to file their comments–an entire month (see PA DEP Invites Public Comment on Shell 60-Mile Ethane Pipeline). However, one month isn’t enough time for anti-drillers to marshal the faithful to try and sink the project. FracTracker Alliance, an anti-fossil fuel organization, colluded with other groups to put the word out to flood the DEP with demands to keep the comment period open. The DEP folded, like a flimsy house of cards, and has now extended the comment period to April 17th along with three public hearings (circus freak shows), which will give the FracTracker faithful time to mount publicity and legal offensives to try and stop the project. If the pipeline doesn’t happen, work at the cracker plant stops. Which, of course, isn’t going to happen. But it illustrates the true aim of FracTracker and other virulent (way, way, WAY outside the mainstream) anti-fossil fuel groups…
    Read More “PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline”

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    NJDEP Hail Mary – Pleads with FERC to Stop PennEast Pipeline

    The now fully politicized New Jersey Dept. of Environmental Protection (NJDEP), along with the Delaware and Raritan Canal Commission, filed a joint request with the Federal Energy Regulatory Commission (FERC) last Friday asking FERC to reconsider and rescind its approval of the PennEast Pipeline project, which FERC granted just last month (see FERC Grants Final Approval for PennEast Pipe – Real Battle Begins). PennEast is a $1 billion, 120-mile primarily 36-inch natural gas pipeline that will stretch from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The pipeline is an important conduit to move gas from the prolific gas fields of northeastern PA to markets in southeast PA and New Jersey. From the beginning of the project there have been a collection of so-called environmental organizations opposing it–including THE Delaware Riverkeeper, NJ Sierra Club, and the NJ Conservation Foundation. All radical groups. Unfortunately NJ elected an authoritarian Democrat as governor–Phil Murphy–who pledged to try and stop the project (see Dem Candidate for NJ Gov Opposes PennEast, After He $upported It). Murphy (a tool of Big Green) has politicized the NJDEP and has caused them to dance to his radical tune. In addition to receiving a formal request by NJDEP, FERC also received the same request from the nutty Sierra Club (no surprise there), and also a far-left Democrat State Senator, who is using the request as a fundraiser for his next campaign…
    Read More “NJDEP Hail Mary – Pleads with FERC to Stop PennEast Pipeline”

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    OH Supreme Court Rejects Anti Request to Stop Wastewater Disposal

    The Ohio Dept. of Natural Resources (ODNR) is actively working on new regulations “regarding storage, recycling, treatment, processing, and disposal of brine and other waste substances.” That is, for wastewater treatment and disposal from the oil and gas industry. It’s taking the ODNR a while to hash out the new regs (they were instructed to do so back in 2014). However, in the meantime, ODNR issues special orders/permits on a case by case basis to allow wastewater treatment and disposal facilities to start up and operate. Hoping to shut down all drilling (in Ohio and other states that send wastewater to Ohio), the odious Food and Water Watch and misnamed FreshWater Accountability Project sued in the Tenth District Court of Appeals, arguing that because ODNR hasn’t released the new regs, they shouldn’t be allowed to keep issuing temporary/special permits. The Tenth District said the radical enviro groups didn’t have standing to file the case and dismissed it. On appeal to the State Supreme Court, the Supremes said the same thing. Therefore, ODNR’s authority to continue granting temporary/special permits for wastewater treatment remains in effect. Another huge loss for Food and Water Watch…
    Read More “OH Supreme Court Rejects Anti Request to Stop Wastewater Disposal”

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    WV’s Northern Panhandle Sits in the Shale Catbird Seat

    The Northern Panhandle of West Virginia is doubly blessed. The Panhandle is four counties: Hancock, Brooke, Ohio and Marshall. Some add a fifth–Wetzel County. The first four counties in the list sit in a slice of real estate located between Pennsylvania and Ohio. The Panhandle currently produces 38% of WV’s natural gas production, and nearly 70% of its oil production. That’s the first blessing–good rock sits under those counties. The second blessing is the panhandle’s location between PA and OH. On one side, sitting just a few minutes away, is the mighty Shell ethane cracker plant, currently under construction in Monaca (Beaver County, PA). On the other side, also just a few minutes away, sits the proposed PTT Global Chemical ethane cracker site in Dilles Bottom (Belmont County, OH). The second blessing is this: many petrochemical and manufacturing companies will build, even relocate, their operations to take advantage of the raw materials that will come from both cracker plants. And guess where many of them will choose to locate? Yep–right smack in the middle, which is where the Northern Panhandle happens to be–sitting in the catbird seat…
    Read More “WV’s Northern Panhandle Sits in the Shale Catbird Seat”

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    Yet Another Fracking-Causes-Earthquakes “Study” – This Time in Utica

    Yet another “fracking may cause earthquakes” study has been published in the so-called peer reviewed journal PNAS (Proceedings of the National Academy of Sciences). Researchers from the University of Miami (in Ohio) admit the kind of earthquakes they talk about in their paper, potentially caused by Utica Shale drilling, are “rare.” But, they are also “concerning.” Yes, everyone should be concerned that in zero percent of Utica well drilling cases (statistically speaking) there have been NO earthquakes. Actually a couple of cases are thought to be related to fracking over a fault–but it’s still unproven. Statistically speaking, it’s 0%. But, there could be problems! Maybe. If the conditions are “just right.” Ya never know. We note the researchers didn’t address concerns over fans in football stadiums that, when they all stomp their feet at the same time, have caused “earthquakes” that are higher on the Richter scale than the ones they postulate “may, maybe, might” happen in Utica drilling. No mention of football fan earthquakes in this study. Below is the “news” about this latest, breathlessly urgent report that everyone should read…
    Read More “Yet Another Fracking-Causes-Earthquakes “Study” – This Time in Utica”

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    PA Town Sues Sunoco for ME2 Pipe Construction “Too Close” to Homes

    We understand why folks in Uwchlan Township (Chester County, PA) may be upset with Sunoco Logistics and the Mariner East 2 NGL pipeline that’s crossing through their area. Last summer drilling work for the pipeline in Uwchlan created cloudy well water for some residents (see ME2 Pipe Work in Chester County Creates Water Well Issue for Some). The PA Dept. of Environmental Protection (DEP) recently allowed Sunoco to resume work in the township (and elsewhere)–after Sunoco paid a $12.6 million fine (see PA DEP Allows ME2 Underground Drilling to Resume in Chester County). So yeah, residents have some concerns. However, they’re going about venting their frustration in the wrong way. Last week supervisors in Uwchlan Township voted unanimously to enforce an ordinance that requires pipelines like ME2 to be set back 1,000 feet from buildings. In some cases, ME2 is being built within 100 feet of buildings. While we appreciate Uwchlan’s concerns, the simple fact is, local municipal ordinances DO NOT override state regulations. In this case, it is the state DEP and Public Utility Commission that regulate the project. It is state law that trumps local ordinances–as it should be. By all means, wheel and deal and pressure and try to get Sunoco to change the route–but you cannot take the law into your own hands, which is exactly what Uwchlan is attempting to do…
    Read More “PA Town Sues Sunoco for ME2 Pipe Construction “Too Close” to Homes”

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    Williams 17/18 Update: Full Atlantic Sunrise Startup Slightly Delayed

    Last week Williams, the largest pipeline/midstream company operating in the Marcellus/Utica region, released its fourth quarter and full year 2017 update. While the company lost $342 million in 4Q17 due to “non-cash charges related to Tax Cuts and Jobs Act of 2017,” the company made a profit of $871 million for the year, up 100% from making $431 million in 2016. The company brought five big projects online in 2017–Gulf Trace, Hillabee Phase 1, Dalton, New York Bay and Virginia Southside II–which added an extra 2.8 billion cubic feet per day of capacity and led to record-breaking volumes of gas flowing along the Transco pipeline (see Williams Marcellus Buildout Leads to Record Transco Pipe Volumes). However, it was the Atlantic Sunrise Pipeline project that stole most of the limelight in last week’s update. Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County, PA. The pipeline will be ready in July, on schedule. However, an associated compressor station will take “a few months longer” than July, meaning the pipeline won’t be online until early fall sometime (not on schedule). Below is last week’s Williams update, a copy of the latest PowerPoint presentation, and excerpts from the analyst phone call…

    2/22/18 Update: Our original thought was that with a delay in the compressor station starting up, the entire pipeline would be delayed in starting up. Not true! We reached out to Williams for an explanation for how the pipeline could stay on schedule without the compressor going online initially. We got this statement back: “The gas that is placed into the system by producers enters the pipeline at very high pressures. In addition, we have existing Transco compression near the terminus of the line that is pulling the gas through the line. This push/pull dynamic is what allows gas to flow through the pipe prior to the full commissioning of the project’s compression.” So there you have it. While the full startup will be slightly delayed, the pipeline will still flow much of the volume intended–on schedule in July.
    Read More “Williams 17/18 Update: Full Atlantic Sunrise Startup Slightly Delayed”

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    TransCanada Spending $1.9B to Bring More Canadian Gas to Northeast

    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 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). Last week 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–to compete with the Marcellus/Utica…
    Read More “TransCanada Spending $1.9B to Bring More Canadian Gas to Northeast”

  • Other Energy Stories of Interest: Tue, Feb 20, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: PA’s rig count hits highest level since 2015; OH compressor company returns to full employment; Bethlehem wants PennEast Pipeline moved; NY in a natgas death spiral; U.S. northeastern economy at risk from high energy costs; flaring still a problem in ND; Democrat Mayor in Illinois wants to slap 4% tax on natgas; my bloody valentine (natgas stats); U.S. methane emissions have virtually no impact on climate; OPEC & shale together keep oil above $60/barrel; China-Russia gas pipeline; and more!
    Read More “Other Energy Stories of Interest: Tue, Feb 20, 2018”

  • MDN Off Today – President’s Day Holiday

    Believe it or not, today is a New York Stock Exchange holiday (i.e. bank) holiday. MDN rarely takes a day off, so we tend to track with those holidays observed by the NYSE. Have no fear, we are monitoring the news and if anything earth-shattering happens, we’ll bring you the latest.  Otherwise, look for full-strength MDN to return tomorrow. In the meantime, we have issued the weekly calendar of events.

    – Jim Willis, Editor

  • Calendar of Marcellus/Utica Events for Feb 19 – May 18

    Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.

    To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address. Thank you!
    Read More “Calendar of Marcellus/Utica Events for Feb 19 – May 18”