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PM ACC 31/7/2017
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(ACC Mentioned) The Shale Treasure Hunt
Jul 31, 2017 | Hydrocarbon Engineering
By Callum O'Reilly
The petrochemical industry is booming in the US – largely fuelled by the low cost of shale gas and shale gas liquids as a feedstock. New drilling and exploration techniques enable natural gas and liquids to be extracted cost effectively from shale rock and when employing state-of-the art cryogenic gases technology, even wet shale gas basins can now be developed efficiently to deliver valuable natural gas liquids (NGLs) for various industries. -
Greens Urge Court to Revive EPA's Methane Rule for New Oil and Gas Wells
Jul 31, 2017 | Politico Pro Whiteboard
By Alex Guillen
Environmentalists today asked a federal court to order EPA to resume enforcing its methane rule for new oil and gas wells after the agency did not ask for an appeal in the window provided by the court. -
Gas Project Builder Tries to Get around N.Y. Approval
Jul 31, 2017 | E&E Energywire
By Saqib Rahim
New York has made itself the bane of the natural gas pipeline industry's existence. But according to a recent federal ruling, the industry may have found a workaround through the Federal Energy Regulatory Commission. -
Court Blocks Reopening of Aliso Canyon
Jul 31, 2017 | E&E Greenwire
A California court last week blocked Southern California Gas Co. from reopening its natural gas storage facility at Aliso Canyon in the wake of a 2015 methane blowout that forced thousands of families from their homes. -
White House Shakeup Leaves Gap in U.S. Cyber Leadership
Jul 31, 2017 | E&E Energywire
By Blake Sobczak and Peter Behr
President Trump's latest reboot of the chaotic White House operations includes a new, conflict-tested chief of staff in former Marine Corps Gen. and Secretary of Homeland Security John Kelly.
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(ACC Mentioned) The Shale Treasure Hunt
Jul 31, 2017 | Hydrocarbon Engineering
By Callum O'Reilly
The petrochemical industry is booming in the US – largely fuelled by the low cost of shale gas and shale gas liquids as a feedstock. New drilling and exploration techniques enable natural gas and liquids to be extracted cost effectively from shale rock and when employing state-of-the art cryogenic gases technology, even wet shale gas basins can now be developed efficiently to deliver valuable natural gas liquids (NGLs) for various industries.
While natural gas reserves occur in many other parts of the world, it is in the US where industry is most determined to develop unconventional sources of natural gas in order to reduce dependence on energy imports. But shale gas is a lot more than just a source of energy. Not only is it an ideal fuel for power plants and district heating, it also delivers valuable feedstock such as ethane for the petrochemical industry. Natural gas can be easily converted into base chemicals such as ethylene, which is a hydrocarbon compound and precursor of many common chemicals. The best known are probably the plastics found in everything from packaging and cable insulation through car seats to toys. The American Chemistry Council (ACC) estimates that the shale gas boom has so far fuelled investments to the tune of around US$179 billion in the US petrochemical industry alone.1 Much of the investment is geared toward export markets for chemistry and plastics products. Yet gas fields that will be of real interest to ethylene producers are still at the very early stages of development. Ethylene produced from shale gas has the potential to unleash a new industrial revolution in the US.
Before that can happen, however, there are hurdles to overcome. The shale gas liquid recovery processes typically used thus far are not the most efficient. Efficient processing of these valuable raw materials calls for highly specialised know-how as the quality of shale gas reserves can vary significantly from one shale basin to another.
Wet shale gas is a much more interesting prospect for the petrochemical industry than dry shale gas, as these reserves contain extremely valuable raw materials. Their composition can vary dramatically. Wet shale gas contains less methane, but higher concentrations of ethane (C2) and longer-chain hydrocarbons, such as propane (C3) and butane (C4) , and higher molecular weight hydrocarbons. Referred to as NGLs, they are the perfect feed for gas crackers, which produce ethylene. This translates into a huge market opportunity.
Unconventional reserves present a number of challenges to chemical engineers, however. Wet shale gas is occasionally contaminated with impurities such as trace amounts of mercury and, sometimes, hydrogen sulfide (H2S) as well as carbon dioxide (CO2). These substances must be almost completely removed before the ethane and propane in the shale gas can be fed to an olefin plant. Cryogenic condensation technology that was originally designed for the recovery of…
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Story can be found here: https://www.hydrocarbonengineering.com/gas-processing/31072017/the-shale-treasure-hunt/
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Greens Urge Court to Revive EPA's Methane Rule for New Oil and Gas Wells
Jul 31, 2017 | Politico Pro Whiteboard
By Alex Guillen
Environmentalists today asked a federal court to order EPA to resume enforcing its methane rule for new oil and gas wells after the agency did not ask for an appeal in the window provided by the court.
A panel of three judges on the D.C. Circuit Court of Appeals earlier this month ruled Administrator Scott Pruitt's 90-day stay of the methane rule was unlawful but agreed to keep Pruitt's stay in place for two weeks to give the agency a chance to appeal. That time ran out last week, and while industry groups and states opposed to the rule asked for en banc review by the full court, EPA has remained silent.
The environmental groups today called the industry and state rehearing petitions "transparent attempts to seek further delay" that should not stop the court from ordering EPA to lift Pruitt’s administrative stay, which otherwise is slated to expire on Aug. 31.
“The filing of such flimsy petitions cannot be permitted to accomplish the very delay this Court found unlawful, to the detriment of Petitioners’ members and other Americans who are suffering continued exposure to dangerous—and easily preventable—air pollution,” they wrote.
WHAT’S NEXT: The court must decide whether to grant the environmentalists’ request and order the rule reinstated, or explore the industry and states’ appeal requests. The order keeping Pruitt’s stay of the rule in place temporarily was specifically said to give EPA time to appeal, which the agency has not done.
https://www.politicopro.com/energy/whiteboard
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Gas Project Builder Tries to Get around N.Y. Approval
Jul 31, 2017 | E&E Energywire
By Saqib Rahim
New York has made itself the bane of the natural gas pipeline industry's existence. But according to a recent federal ruling, the industry may have found a workaround through the Federal Energy Regulatory Commission.
On July 21, Millennium Pipeline Co. appealed to FERC for permission to start building the Valley Lateral Project, an 8-mile spur meant to fuel a new natural gas plant north of New York City.
Millennium said New York regulators have had 19 months to act on the application for a Clean Water Act permit, when federal law restricts them to a year, and that FERC should therefore allow Millenium to start building.
The New York State Department of Environmental Conservation pushed back last week, saying it has through at least August to decide, since that's a year from when it received a complete application.
"NYSDEC fully intends to make a final decision after the public comment period has closed, but no later than August 30, 2017," the state said in a filing to FERC, asking the commission to reject Millennium's request.
The case may shed light on how federal authorities want to treat pipeline projects when builders complain they've been stymied by state authorities. New York has won special ire among pipeline builders, as NYSDEC denied federal water permits to two major natural gas pipelines last year, even though both had FERC approval (Energywire, May 5).
FERC approved Millennium in November 2016, on the condition that the company got other necessary authorizations, such as the Clean Water Act Section 401 certificate that falls to state review.
In December, Millennium asked a federal appeals court to review New York's inaction on the certificate. The company said New York had waived its review authority, under the Clean Water Act, by going over 12 months.
Last month, a judge for the U.S. Court of Appeals for the District of Columbia Circuit dismissed the case, saying it's up to FERC to decide.
"So what can Millennium do in the face of the Department's continued inaction?" Judge Sri Srinivasan wrote. "Millennium can go directly to FERC and present evidence of the Department's waiver."
Attorneys with Van Ness Feldman LLP, who helped argue Millennium's side, said the ruling means the industry may have a way around state agencies that take over a year to act.
"While the dismissal of Millennium's petition is technically a loss, the court's opinion is a victory for the industry in that it clarifies that FERC can and should determine whether New York waived its right to issue a water quality certification for failing to act within a year," they wrote in a dispatch this month.
New York has maintained that regardless of FERC action, it has the final say over the 401 permit, and thus the pipeline. But Srinivasan said that if FERC were to grant the waiver, "Millennium would have all the authority it needs to begin construction." NYSDEC could still appeal in the D.C. Circuit, he said.
The Valley Lateral Project is the sole supply source for the CPV Valley Energy Center, a 680-megawatt power plant under construction in Wawayanda, N.Y., about 75 miles north of New York City.
Competitive Power Ventures Holdings LLC, which is developing the project, wants to put the plant into commercial operation by February 2018.
"Without the Valley Lateral Project constructed and capable of delivering natural gas to the CPV Valley Energy Center, the CPV Valley Energy Center will be essentially unable to operate," the company said in a December filing to the D.C. Circuit. "The projected economic harm to CPV Valley from the delay in access to natural gas is over $56 million."
Last year, federal prosecutors accused two former aides to Gov. Andrew Cuomo (D), and one former CPV executive, of a corruption scheme that included the plant.
The facility is part of the state's plan for replacing the retiring Indian Point Energy Center, a 2,000-MW nuclear plant.
State regulators, who report to Cuomo, have approved a portfolio plan to replace that power. It includes transmission projects to clear the way for wind power upstate; energy efficiency and demand response measures; and new natural gas plants downstate, including CPV Valley.
"Already, 730 megawatts of transmission improvements and energy efficiency are in-service via the Public Service Commission's Indian Point Contingency Plan, and more generation resources are slated to come online in the near future," the governor's office said in a February release.
In 2014, New York got 37 percent of its power from gas, 31 percent from nuclear and 27 percent from renewables.
Last August, the PSC approved a plan to get half of the state's power from renewable energy by 2030. The Clean Energy Standard included controversial subsidies for three nuclear plants, on the grounds that gas would replace them if they retired, setting back the state's climate goals.
https://www.eenews.net/energywire/2017/07/31/stories/1060058124
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Court Blocks Reopening of Aliso Canyon
Jul 31, 2017 | E&E Greenwire
A California court last week blocked Southern California Gas Co. from reopening its natural gas storage facility at Aliso Canyon in the wake of a 2015 methane blowout that forced thousands of families from their homes.
The order, issued late Friday by Associate Justice Lamar Baker of the 2nd District Court of Appeal, came just a week after state regulators issued approval to pump gas into the facility's underground storage wells (Energywire, July 20).
The facility has been largely out of commission since 2015, when an old well failed, causing the largest-known release of methane in U.S. history. The incident led to about 8,000 evacuations and a range of health issues for residents in the surrounding area.
County residents, many of whom have moved to get the plant shuttered for good, feared Aliso Canyon would reopen over the weekend without court intervention.
Southern California Gas said in response to the court order that the delays could prevent it from meeting inventory requirements needed to avoid an energy shortage (Brian Melley, San Francisco Chronicle, July 29). — NS
https://www.eenews.net/greenwire/2017/07/31/stories/1060058137
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White House Shakeup Leaves Gap in U.S. Cyber Leadership
Jul 31, 2017 | E&E Energywire
By Blake Sobczak and Peter Behr
President Trump's latest reboot of the chaotic White House operations includes a new, conflict-tested chief of staff in former Marine Corps Gen. and Secretary of Homeland Security John Kelly.
But Kelly's move leaves a significant void at the Department of Homeland Security, which is charged with investigating cyber crimes and developing security policies that affect electric utilities and other major industries. Trump administration cybersecurity policies are still in flux, even as tensions with North Korea increase and officials remain concerned about Russia's capacity to launch attacks on U.S. infrastructure.
Rep. Jim Langevin (D-R.I.), co-chairman of the Congressional Cybersecurity Caucus and a member of the House Homeland Security Committee, told E&E News on the sidelines of the DEF CON hacking conference in Las Vegas that he hopes Kelly "can provide much-needed stability" at the White House.
DHS, which brought together several security arms of the government when it was created after the 9/11 attacks, is still experiencing growing pains. "What it most needs is steady, long-term, consistent leadership," Langevin said.
DHS Deputy Secretary Elaine Duke will take over as acting secretary until Trump nominates a replacement. She served as DHS undersecretary for management for 2008 to 2010 and led a consulting firm before rejoining DHS this year. Kelly's successor will have an important role in shaping the administration's handling of cybersecurity policies and planning for recovery if attacks succeed.
Trump signed an executive order in May that called for a top-level assessment of consequences of a prolonged, widespread blackout caused by an attack on U.S. electric power networks, and of gaps in utility cyberdefenses and recovery strategies. DHS, the Department of Energy and the Office of the Director of National Intelligence were given the task, with a deadline in mid-August.
The gravity of recent North Korean missile testing has made the cyber report even more important, given Pyongyang's previous cyber offensives against the United States and unconfirmed reports that Trump has stepped up the use of cyber weapons to sabotage North Korea's missile tests. One Trump administration official familiar with the cyber assessment said the review's bottom line is ominous. "We are so vulnerable," this person said.
The New York Times reported in April on the high rate of North Korean missile test failures, and a comment by Secretary of State Rex Tillerson that suggested a U.S. hand in the failures. "Cyber tools to disrupt weapons programs — that's another use of the tools, and I make a distinction between those two," Tillerson said in Moscow, responding to a reporter's question. The Timesalso noted the observation by William Perry, President Clinton's Defense secretary. "Disrupting their tests," Perry said, is "a pretty effective way of stopping [them]."
But North Korea's recent tests have not failed. Trump tweeted his personal frustration with the North Korean weapons buildup Saturday, a new attempt by him to pressure China into joining the United States in a new round of punishing economic sanctions.
"I am very disappointed in China. Our foolish past leaders have allowed them to make hundreds of billions of dollars a year in trade, yet ... they do NOTHING for us with North Korea, just talk. We will no longer allow this to continue. China could easily solve this problem!"Restoring order
Shannon Vavra, in an Axios report yesterday, quoted Adm. James Stavridis, former NATO supreme allied commander, saying the United States has "reasonable" cyber options to deploy against North Korea. But "nothing is [foolproof]," he added. Bruce Bennett, a defense researcher at RAND Corp., told Axios that the rudimentary connections between North Korea's computer networks and the global internet matrix make it hard for U.S. cyber countermeasures to be effective.
Trump hasn't revealed his plans for DHS, but speculation on weekend news programs centered on a transfer of Attorney General Jeff Sessions to the security Cabinet post. That would create a vacancy at the Justice Department, where the president could appoint a successor willing to blunt or fire Robert Mueller as head of the special investigation into Russian contacts with Trump's presidential campaign. Senators from both parties have warned Trump to leave Sessions and Mueller alone.
Kelly's move to the White House was well-received over the weekend. Republicans hope he can control the Hatfield-McCoy feuding among the president's White House principals, channel policy more effectively and perhaps even rein in the president's disruptive personal messaging. "He will bring some order and discipline to the West Wing," Sen. Susan Collins (R-Maine) said on NBC's "Meet the Press" program yesterday.
"Gen. Kelly is going to restore order to the staff," former Trump campaign manager Corey Lewandowski said on the same program. "No more stabbing each other in the back," he added (noting that Trump's new communications director, Anthony Scaramucci, prefers to "stab you in the front").
Whether Kelly has the political skills to get the pieces of Trump's foreign and domestic policies moving toward unified goals remains to be seen, observers said. At the same time that Trump is pleading with China to do more to restrain North Korea's missile program, his Commerce Department is finishing work on trade sanctions that are likely to hit Chinese steel exports hard, a cornerstone of the president's tough-on-trade stance.
In his half-year at DHS, Kelly pleased Trump by giving border control a higher public priority than cyberdefense. But members of Congress and security experts have remained dissatisfied with DHS's work on multiple cybersecurity programs and coordinating with critical cyber programs at DOE and the Treasury Department, among others.
Rep. Michael McCaul (R-Texas), chairman of the House Homeland Security Committee, another name in the rumor mill for DHS, has said restructuring the agency is a top priority.
McCaul introduced legislation last week to establish a "Cybersecurity and Infrastructure Security Agency" that would replace DHS's National Protection and Programs Directorate (NPPD). Under the proposal, which passed the Homeland Security Committee on Wednesday, the new agency would gain additional authority to coordinate cyberdefenses for federal and critical infrastructure networks.
A big, uncompleted cybersecurity agenda awaits Kelly's successor, including the potential for a revamped NPPD.
https://www.eenews.net/energywire/2017/07/31/stories/1060058126
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