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(ACC Mentioned) McSally Internal Poll Shows Tie With Ward
Nov 27, 2017 | PoliticoPro
By Maggie Severns
The American Chemistry Council, which began airing ads backing Michigan Democratic Sen. Debbie Stabenow and the GOP's Heller last week, also plans to air ads supporting North Dakota Sen. -
EU Backs Five-Year Extension for Weed-Killer Glyphosate
Nov 27, 2017 | Reuters (In The New York Times)
By Alastair Macdonald
EU countries approved on Monday the use of weed-killer glyphosate for the next five years after a heated debate over whether it causes cancer. -
EU Member States Consider Titanium Dioxide Labelling Issue
Nov 27, 2017 | Chemical Watch
The European Commission has asked member state competent authorities to come up with solutions to a titanium dioxide labelling problem, arising from the proposed carcinogenicity classification. -
Chemical Company Stays Silent As Water Concerns Mount
Nov 27, 2017 | E&E Greenwire
For six months, Chemours Co. has faced concerns about an unregulated chemical it has dumped into the Cape Fear River for as long as four decades. -
With Prodding, Retailers Push Chemical Policies
Nov 27, 2017 | Chemical & Engineering News
By Melody M. Bomgardner
A year ago, the Mind the Store campaign of consumer activist organization Safer Chemicals, Healthy Families issued a report card grading 11 retail chains on their efforts to reduce or eliminate hazardous chemicals in products they carry. -
Keystone Spills Larger Than Company Predicted Before It Was Built
Nov 27, 2017 | The Hill - E2 Wire
By Devin Henry
Spills from the Keystone pipeline, including one in South Dakota this month, have exceeded the amount predicted by its developer before the pipeline began operating, Reuters reported Monday. -
The East Coast's Pipeline Wars: A Cheat Sheet
Nov 27, 2017 | E&E Energywire
By Ellen M. Gilmer, Jenny Mandel and Saqib Rahim
The expansion of natural gas infrastructure along the East Coast has created a seemingly endless queue of new pipeline battles involving landowners, environmentalists, states and the federal government. -
Agency Floats Overhaul of Energy Efficiency Standards
Nov 27, 2017 | E&E Greenwire
By Christa Marshall
The Department of Energy is weighing a complete overhaul of efficiency standards to allow more "flexibility," prompting warnings from environmentalists that the program could be weakened dramatically. -
LNG Exports Won’t Make Or Break Gas Market, But E&Ps May Benefit
Nov 27, 2017 | Natural Gas Intelligence
By Leticia Gonzales
Vast supplies of low-cost natural gas have put the United States on track to becoming the largest exporter of liquefied natural gas (LNG) within the decade. -
D.C. Circuit Grants Former Obama Officials Role in RMP Delay Suit
Nov 27, 2017 | Inside EPA
A federal appeals court has granted former Obama worker safety officials' request to back environmentalist and Democratic state attorneys general in a suit challenging the Trump administration's nearly two-year delay of Obama EPA revisions tightening the Risk Management Plan (RMP) facility accident prevention rule. -
CSX Train Carrying Harmful Chemicals Derails in Florida
Nov 27, 2017 | Reuters (In The New York Times)
By Gina Cherelus
A CSX Corp freight train carrying hazardous molten sulfur derailed in central Florida on Monday, prompting authorities to tell residents to stay indoors for several hours, company officials said. -
Trump Races to Pick Judges Who Oversee Environment Cases
Nov 27, 2017 | E&E Climatewire
By Robin Bravender and Scott Waldman
President Trump has dismissed global warming as a hoax, snubbed the Paris emissions pact and scrapped U.S. EPA climate rules. -
EPA Official Explains Why More Time's Needed for Brick Rules
Nov 27, 2017 | E&E Greenwire
By Sean Reilly
A senior U.S. EPA official attempts in a new court filing to explain what EPA lawyers recently couldn't: why the agency needs almost two years to again revisit air emission standards for the brick industry that were originally due in 2000.
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(ACC Mentioned) McSally Internal Poll Shows Tie With Ward
Nov 27, 2017 | PoliticoPro
By Maggie Severns
EARLY POLLING DATA — FIRST IN SCORE — McSally internal poll shows tie with Ward: An internal polling memo from Arizona Rep. Martha McSally's campaign, obtained by Morning Score, has the congresswoman essentially tied with former State Sen. Kelli Ward in the state's GOP Senate primary. The survey has McSally earning 38 percent of the vote to Ward's 36 percent, with 26 percent undecided. Public polling in the race, mostly IVR surveys, has shown Ward with a significant lead over McSally, who has yet to officially launch her campaign. "Contrary to what some public polls suggest, Kelli Ward does not hold a strong position in the Primary race for United States Senate in Arizona. The limitations of these poorly-conducted surveys have created a misleading dialogue about the state of the nomination contest," WPA Intelligence pollsters Chris Wilson and Alex Muir write. Read the full memo here.
SEXUAL HARASSMENT FALLOUT — “Conyers allegations put Pelosi in tight spot,” by POLITICO’s Kyle Cheney and Heather Caygle: “Rep. John Conyers said Sunday he was stepping down from his post as the top Democrat on the Judiciary Committee amid accusations of sexual harassment that have put his party's leaders in a bind. The decision by the Michigan lawmaker — who has held his seat since 1965 and who denies the harassment allegations — followed several days of internal deliberation and pressure from Democratic colleagues, including Minority Leader Nancy Pelosi, who wanted Conyers to leave the high-profile post but didn't want to be seen as forcing him out. Congressional Black Caucus Chairman Cedric Richmond (D-La.) and assistant Democratic leader Jim Clyburn(D-S.C.) reached out to some CBC members over the Thanksgiving recess to take the temperature of the caucus, according to multiple sources. The group is arguably the most powerful bloc within the House Democratic Caucus and is fiercely protective of its members, particularly Conyers, who was a founding member.”
— “In an interview Sunday on NBC’s ‘Meet the Press,’ Pelosi seemed to underscore the cautious approach by taking pains to praise Conyers' record and call for ‘due process,’ even as she said she believed ‘he will do the right thing.’ She also referred to Conyers as an ‘icon’ for his lengthy service and work ‘to protect women.’ … After criticism on social media of her use of the word ‘icon,’ Pelosi quickly endorsed Conyers’ decision to step aside from the committee post. ‘No matter how great an individual’s legacy, it is not a license for harassment,’ she said in a statement.” Full story.
— Primary politics note: Conyers has faced contested primaries in each of the last three elections, getting less than 61 percent of the Democratic vote twice. If Conyers does decide to run for reelection, don’t sleep on the prospect of him losing this time around despite his “safe” district.
AIR WARS — FIRST IN SCORE — Not One Penny targets Murkowski, Capito in new ads: Not One Penny, a coalition of Democratic groups fighting the GOP plan for tax reform, is out with new television ads pressuring Sens. Shelley Moore Capito of West Virginia and Lisa Murkowski of Alaska to vote against the plan. The ad aimed at Capito notes the plan “cuts access to affordable health care, including coverage for opioid addiction treatment,” while the ad encouraging voters to call Murkowski says the “congressional Republican tax plan delivers tax breaks to billionaires, millionaires and wealthy corporations.” The ads are part of a seven-figure national ad buy, which also includes spots aimed at Maine Sen. Susan Collins and Nevada Sen. Dean Heller. Watch the ads here and here. Full story here.
—American Chemistry Council backs Heitkamp, Barrasso with TV ads: The American Chemistry Council, which began airing ads backing Michigan Democratic Sen. Debbie Stabenow and the GOP's Heller last week, also plans to air ads supporting North Dakota Sen. Heidi Heitkamp and Wyoming Sen. John Barrasso, according to FEC disclosures. Heitkamp faces a tough fight for reelection, while Barrasso may face a GOP primary challenge. The group is spending $571,000 on ads supporting Stabenow, $590,000 on ads supporting Heller, $153,000 on ads supporting Heitkamp and $133,000 on ads backing Barrasso. The 30-second spot ad boosting Heitkamp says “she fights to provide a strong safety net for our agriculture industry while working to lessen regulations for our farmers and small businesses.” Watch the ad here.
CASH CRISIS — NRSC raises $2.1M, spends $2.7M in October: The NRSC spent $2.7 million and raised just $2.1 million in October, according to FEC records, the fourth month in a row the group spent more than it brought in. The committee has about $14.3 million on hand, but still has $10.3 million in debt. Its counterpart, the DSCC, raised $4.1 million, spent $2.4 million and has $17.5 million on hand. The DSCC has about $8 million in debt, which includes the mortgage on its Capitol Hill offices. Full report here.
Days until the 2018 election: 344.
WOMEN RULE WEEK! POLITICO is partnering with women-led businesses in the DC-metro area to offer a full week of exclusive perks in conjunction with the 5th annual Women Rule Summit! Join the fun at participating businesses during Women Rule Week (Nov. 27 – Dec. 1) for exclusive deals and tweet 5x using #WomenRule for a chance to win two free tickets to the Summit on Dec. 5!
UH OH — “The time to hack-proof the 2018 election is expiring — and Congress is way behind,” by POLITICO’s Martin Matishak: “Lawmakers are scrambling to push something — anything — through Congress that would help secure the nation’s voting systems ahead of the 2018 elections. But it might already be too late for some critical targets. By this point during the 2016 election cycle, Russian hackers had already been in the Democratic National Committee’s networks for at least three months. … Voters in Texas and Illinois will take to the polls in the country’s first primaries in just over three months — a narrow timeline for implementing software patches, let alone finding the funds to overhaul creaky IT systems, swap out aging voting machines or implement state-of-the-art digital audits.” Full story here.
ICYMI — “Moore communications director resigns”: “Embattled Alabama GOP Senate nominee Roy Moore has lost his campaign communications director with only three weeks to go before the Dec. 12 special election, Moore's campaign announced. … The statement did not include a reason for Rogers' departure.” Full story here.
— “Pro-Jones super PAC touts Democrat's Christian values and support for gun rights,” by POLITICO’s Daniel Strauss: “A new ad by the pro-Doug Jones super PAC Highway 31 argues that the Democratic Senate nominee in Alabama would be led by his Christian convictions and is a strong defender of gun rights. ‘He's the tough prosecutor who brought the [1996 Atlanta] Olympics bomber, Eric Rudolph, to justice,’ the narrator in the ad says.” Full story here.
— Trump weighed in on Jones over the weekend: “The last thing we need in Alabama and the U.S. Senate is a Schumer/Pelosi puppet who is WEAK on Crime, WEAK on the Border, Bad for our Military and our great Vets, Bad for our 2nd Amendment, AND WANTS TO RAISES TAXES TO THE SKY. Jones would be a disaster!” Trump wrote on Twitter. More from POLITICO’s Matthew Nussbaum here.
FLIPPING 24 SEATS — March On’s Fight Back PAC announced a new fundraising campaign for 2018 called $24 for 24. Per a press release, “the campaign is centered around impeachment and the concern that the Republican Congress would not initiate impeachment proceedings no matter what Special Counsel Robert Mueller reports. The only way we can be sure any potential allegations against Donald Trump and his cronies are handled correctly is to flip the 24 Congressional seats needed to take back the majority in Congress. ... Andi Pringle, Executive Director of March On’s Fight Back PAC, said, 'Flipping Congress is no easy task. Whether you’re a committed activist or not, $24 for 24 is a way everyone can participate in the vitally important work of reclaiming our country from the extreme Right. That is the only way we’ll be able to turn the tide on issues of importance to our community, whether that’s women’s reproductive health, climate change protections or impeachment.'”
FLORIDA MAN — “John Morgan: I'm leaving Democratic party, Nelson should run for governor,” BY POLITICO Florida’s Matt Dixon: “John Morgan tossed a bomb Friday into the 2018 political landscape, saying in a post-Thanksgiving message he is leaving the Democratic Party, and that Democratic Sen. Bill Nelson should not run for re-election, but rather seek the governor's mansion so he can leave a ‘legacy.’ … Morgan did not close the door on the idea of running for governor himself — a notion supported by many in his party — but said in his message, if he did, he would do so as an independent.” Full story here. Read Morgan’s Facebook post here.
QUOTE OF THE DAY: “I'm not aware of a single senator of either party who was elected for supporting leadership, and I know there hasn't been a candidate elected by opposing Mitch McConnell,” said GOP strategist Josh Holmes, a former McConnell chief of staff, downplaying the notion that candidates stand to gain by avoiding McConnell this year in POLITICO.
https://www.politico.com/newsletters/morning-score/2017/11/27/mcsally-internal-poll-shows-tie-with-ward-032062
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EU Backs Five-Year Extension for Weed-Killer Glyphosate
Nov 27, 2017 | Reuters (In The New York Times)
By Alastair Macdonald
BRUSSELS — EU countries approved on Monday the use of weed-killer glyphosate for the next five years after a heated debate over whether it causes cancer.
Diplomats said Germany swung the vote, coming off the fence after abstaining in previous meetings to oppose its key EU partner France, which wanted a shorter licence extension.
The European Commission said in a statement that 18 countries had backed its proposal to renew the chemical's licence, with nine voting against and one abstaining, declaring this to be a "positive opinion".
Europe has been wrestling for the past two years over what to do with the chemical, a key ingredient in Monsanto's top-selling Roundup, whose licence was set to expire on Dec. 15.
The chemical has been used by farmers for more than 40 years, but its safety was cast in doubt when a World Health Organization agency, the International Agency for Research on Cancer (IARC), concluded in 2015 it probably causes cancer.
The European Union agreed to roll over the licence for 18 months pending the results of a study by the European Chemicals Agency, which said in March this year that there was no evidence linking glyphosate to cancer in humans.
Protest groups, however, seized on the IARC report, questioned the science in other studies and complained about the influence of big business.
In theory, the Commission could have pushed through a licence extension, but it said it wanted governments to make the call on an issue that has become so politically charged. After a series of indecisive votes, they finally produced a clear majority in favour of the Commission's proposal.
"Today's vote shows that when we all want to, we are able to share and accept our collective responsibility in decision making," said health and food safety commissioner Vytenis Andriukaitis.
Diplomats said the key swing vote came from Germany, whose government is still operating in an acting capacity following an indecisive September election. Berlin abstained earlier, but threw its weight behind a decision opposed by France.
Three other abstainers, Poland, Bulgaria and Romania, all did likewise leaving only Portugal on the fence on Monday. The result could scarcely have been closer. The extension required 16 states representing 65 percent of the Union's population to vote in favour. The 18 supporters account for 65.7 percent.
https://www.nytimes.com/reuters/2017/11/27/us/27reuters-eu-health-glyphosate.html
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EU Member States Consider Titanium Dioxide Labelling Issue
Nov 27, 2017 | Chemical Watch
The European Commission has asked member state competent authorities to come up with solutions to a titanium dioxide labelling problem, arising from the proposed carcinogenicity classification.
Echa's Risk Assessment Committee (Rac) decided in July that the substance should be classified under EU CLP as a category 2 carcinogen by inhalation.
The toxic effect is specific to the inhalation of small titanium dioxide particles. In its Opinion, the Rac describes it as "particle carcinogenicity".
But the classification, and therefore also the labelling requirements, would apply to all forms of titanium dioxide, and mixtures containing it, including:larger particles;so-called massive forms, in which the substance does not comprise particles at all, but rather distinct, solid blocks; andsuspensions, in which the substance as particles is dispersed evenly through a liquid.
The Commission has concerns because such forms and mixtures may not pose a hazard to human health. Consequently, last week, it asked member state Competent Authorities for REACH and CLP (Caracal) for their views on the application of labelling 'derogations' for them.
A labelling derogation might apply to paints containing titanium dioxide under Annex 1, section 1.3.4 of CLP, if they qualified as mixtures containing polymers or elastomers, the Commission said. But it added that:the derogation would not apply to mixtures containing titanium dioxide if they did not also contain polymers or elastomers;the applicability to borderline cases, such as spray applications, would need to be clarified; andthe derogation would require demonstration that there was no risk to human health by inhalation.
The Commission also said that Article 12 "could be taken into account" to avoid classification of mixtures containing titanium dioxide. This approach would be based on the idea that non-respirable particles do not lead to exposure and therefore there is no bioavailability.
A spokesperson for the Commission told Chemical Watch that the problem was recognised by all the member states, but it would require some creativity. No solution has been arrived at yet.
As an expert group, Caracal has no decision-making responsibility – its role is advisory. Normally, the Commission provides general information about upcoming harmonised classifications. But in the case of titanium dioxide, it decided that wider involvement was needed.
Caracal is likely to discuss a draft amendment to technical progress (ATP) for harmonised classification, at its meeting next March. The final decision will be made by Echa’s REACH Committee, which in most cases signs off harmonised classifications according to Rac Opinions with few changes. Publication of the legislative changes is expected in early 2019, followed by an 18-month transition period.
Caracal members also discussed the possibility of extending the scope of the classification to other poorly soluble low toxicity particles (PSLTs). The Commission spokesperson said that any extension to cover more PSLTs would require a new dossier because the one currently under consideration is specific to titanium dioxide.
https://chemicalwatch.com/62028/eu-member-states-consider-titanium-dioxide-labelling-issue
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Chemical Company Stays Silent As Water Concerns Mount
Nov 27, 2017 | E&E Greenwire
For six months, Chemours Co. has faced concerns about an unregulated chemical it has dumped into the Cape Fear River for as long as four decades. The chemical GenX has unknown health consequences, and the river provides drinking water for hundreds of thousands of people.
The chemical company's response? Silence.
Chemours has said almost nothing in its defense and skipped legislative hearings on the matter.
North Carolina environmental regulators may fine the company and revoke its license to discharge wastewater. A criminal probe was also mentioned after regulators say the company failed to report a chemical spill last month. Chemours did respond to that, saying it is dedicated to running its plant "in accordance with all applicable laws and in a manner that respects the environment and public health and safety."
GenX is used to make Teflon and other industrial items. The state cannot legally enforce GenX standards, but officials detected the chemical above recommended levels in dozens of private wells near a plant in Fayetteville and at a water treatment plant 100 miles downstream.
There are no federal health standards for GenX.
Chemours became a separate company from its predecessor, DuPont Inc., two years ago. DuPont switched to GenX after West Virginia residents said a different fluorinated compound made them sick, leading to more than 3,500 lawsuits.
In 2016, a jury found both DuPont and Chemours liable for a man's testicular cancer linked to the Parkersburg, W.Va., plant (Emery Dalesio, AP/Salt Lake Tribune, Nov. 26). — NS
https://www.eenews.net/greenwire/2017/11/27/stories/1060067303
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With Prodding, Retailers Push Chemical Policies
Nov 27, 2017 | Chemical & Engineering News
By Melody M. Bomgardner
A year ago, the Mind the Store campaign of consumer activist organization Safer Chemicals, Healthy Families issued a report card grading 11 retail chains on their efforts to reduce or eliminate hazardous chemicals in products they carry. No company received an A grade; Target and Walmart were the only ones to even get a B.
This year’s report card, out on Nov. 14, looks quite different. . .
Access to full text unavailable - subscription required.
Story can be found here: https://cen.acs.org/articles/95/i47/prodding-retailers-push-chemical-policies.html?type=paidArticleContent
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Keystone Spills Larger Than Company Predicted Before It Was Built
Nov 27, 2017 | The Hill - E2 Wire
By Devin Henry
Spills from the Keystone pipeline, including one in South Dakota this month, have exceeded the amount predicted by its developer before the pipeline began operating, Reuters reported Monday.
According to documents reviewed by Reuters, TransCanada Corp. and a risk management company told regulators they estimated the risk of a Keystone leak of more than 50 barrels of oil was “not more than once every seven to 11 years over the entire length of the pipeline in the United States.”
In South Dakota, the firms estimated the pipeline would leak “no more than once every 41 years.”
The Keystone pipeline spilled 5,000 barrels of oil in rural South Dakota earlier this month. It reported previous spills in 2011 and 2016. It began operating in 2010.
The leak came days before the Nebraska Public Service Commission approved a permit allowing a new TransCanada project, the Keystone XL pipeline, to cross the state. Regulators in the state could not factor in previous oil spills because spill prevention and cleanup is considered a federal issue, not a state one.
The Keystone XL project is still subject to legal challenges and federal permitting decisions.
As of Friday, TransCanada had recovered 44,730 gallons of oil from this month’s Keystone leak. At the time, the company said it had 170 people working on site to clean up the spill.
http://thehill.com/policy/energy-environment/361956-keystone-spills-larger-than-company-predicted-before-it-was-built
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The East Coast's Pipeline Wars: A Cheat Sheet
Nov 27, 2017 | E&E Energywire
By Ellen M. Gilmer, Jenny Mandel and Saqib Rahim
The expansion of natural gas infrastructure along the East Coast has created a seemingly endless queue of new pipeline battles involving landowners, environmentalists, states and the federal government.
Some of the proposed pipelines have similar names. A handful have similar routes. Many have been in the news for years, while others seem to have sprung from nowhere. They're all accompanied by a nonstop stream of procedural and legal drama.
Even the most astute pipeline watchers have trouble keeping it all straight. Was it Atlantic Coast or Atlantic Sunrise that just got approved? Wait, how many projects are on hold in New York? And aren't there nuns protesting somewhere?
Here's a breakdown of some of the most interesting projects to help you avoid getting your wires — er, pipelines — crossed.Constitution
Length: 126 miles
Route: Northeast Pennsylvania to central New York
Status: Company wants FERC to waive a state-issued water permitThe fate of this project might not just be a matter of laws and regulations; it may also be a battle of political wills. Democratic Gov. Andrew Cuomo of New York has held up a number of high-profile gas projects, including the Constitution pipeline. For its part, Williams Cos. Inc., the lead sponsor of the project, is banking on favorable treatment by the Federal Energy Regulatory Commission.
It all began early last year, when New York regulators denied Constitution a water permit required by the Clean Water Act. Williams challenged that decision in the 2nd U.S. Circuit Court of Appeals. The court let New York's decision stand, but it declined to rule on a critical issue Williams had asked about: whether New York had ceded that authority to the feds by taking too long to review the project.
Now Williams is asking FERC to find "waiver" so that it can start construction on the nearly $700 million project. CEO Alan Armstrong has said the company is pressing FERC and the Trump administration to overrule New York, and lobbying records confirm that representatives for Williams have held meetings with the White House and federal agencies.
For now, Williams doesn't see the pipeline going online before 2019. "Plenty of fight left in this dog, and I think we're well-positioned for it," Armstrong told analysts this month. "But we've got — we will have a fight on our hands, I suspect."Northern Access
Length: 99 miles and associated infrastructure
Route: Northwest Pennsylvania to western New York
Status: Company appealing New York permit denial at 2nd Circuit, at FERC and in state courtNational Fuel Gas Co., the lead sponsor of the Northern Access project, launched a bevy of legal challenges after New York regulators denied its water permit this year. But even the company's president and CEO, Ronald Tanski, has conceded that "it's anyone's guess when we might get an answer."
The roughly half-billion-dollar project would beef up the pipelines and other infrastructure that send gas across the Pennsylvania border into the Buffalo area. It had approvals from FERC and Pennsylvania regulators, but the April decision by the New York State Department of Environmental Conservation left it one permit shy.
National Fuel Gas is challenging New York's denial in the 2nd Circuit, and it's also asking FERC to declare state authority "waived." But as Tanski has acknowledged to investors, some of the pivotal legal questions are getting worked out in other cases, such as the Valley Lateral project in New York. Northern Access has no official service date.Valley Lateral
Length: 7.8 miles
Route: Connects Millennium Pipeline Co.'s main line to a power plant in Orange County, N.Y.
Status: Construction halted pending arguments at 2nd CircuitWhat could have been a routine approval for a $39 million fuel line to a power plant has evolved into a high-stakes case with a federalist twist.
The brouhaha began in August, when the New York State Department of Environmental Conservation denied a water permit that Millennium had to get under the Clean Water Act. Millennium protested to FERC, saying New York had taken longer to reach that decision than the statute allowed: a year.
FERC agreed, saying New York had waived its authority to do the review and that Millennium could go ahead.
Not so fast, the 2nd U.S. Circuit Court of Appeals said.
New York has argued to the federal court that it was within its one-year period when it denied Valley Lateral in August. It simply disagrees with the company on when it got a complete application. And it thinks states' interpretations on this issue trump Washington's.
Now New York, FERC and Millennium will meet in the 2nd Circuit to debate this little piece of the Clean Water Act. They'll attempt to resolve a question that will be significant for other interstate gas pipeline projects.PennEast
Length: 120 miles
Route: Northeast Pennsylvania to central New Jersey
Status: Awaiting final approval at FERC before reapplying to New JerseyFirst proposed in 2014, the roughly billion-dollar project would connect gas fields in the Marcellus Shale to New Jersey, a state that gets more power from gas than any other fuel. But the project hit a speed bump in June when state regulators under Republican Gov. Chris Christie blocked the project's application for a water certificate required under federal law.
PennEast says it's preparing to reapply, but the delay could be costly. Democrat Phil Murphy won convincingly in this month's gubernatorial election, and he enters office with Democratic majorities in the statehouse and ambitious plans for renewable energy.
If Murphy sets up anti-pipeline leadership at the state Department of Environmental Protection, New Jersey could become the next front in the pipeline wars. But if his union supporters convince him otherwise, Murphy could just as soon let the project proceed. He takes office in January.Atlantic Sunrise
Length: 183 miles and multiple expansions and upgrades
Route: Southern Pennsylvania to northern Pennsylvania and upgrades across East Coast network
Status: Approved by FERC; under constructionAtlantic Sunrise encompasses new construction in Pennsylvania and an array of upgrades along the existing Transcontinental Gas Pipe Line Co. LLC system that runs down the Eastern Seaboard to the Gulf Coast.
The $3 billion project has attracted the most pushback in Pennsylvania, where landowners, environmentalists and a group of Catholic nuns have led opposition. The Adorers of the Blood of Christ sued FERC over its approval of the pipeline, arguing that routing the line across their land violates their religious rights. A district court dismissed their claim, and it's now on appeal.
Environmentalists have raised various other challenges to the project, including whether Pennsylvania regulators properly considered its impacts and whether FERC acted beyond its authority when it issued orders related to the pipeline without a quorum.
Atlantic Sunrise opponents had brief success earlier this month, securing a construction freeze. The victory was short-lived, however, and the freeze lasted only two days. The other challenges are pending, and additional lawsuits are expected.Nexus
Length: 255 miles
Route: Eastern Ohio to southeastern Michigan
Status: Approved by FERC; under constructionThe $2 billion Nexus pipeline in Ohio has been a hotbed of legal challenges since before it was approved. Landowners filed a novel lawsuit in May, arguing that FERC's practice of granting eminent domain authority to pipeline developers is unconstitutional. That case is still pending in federal court in Ohio.
Nexus has also spurred a challenge to a longtime FERC practice of issuing "tolling orders" that extend the agency's deadline for responding to rehearing requests. That lawsuit has been sidelined for now, but environmentalists will likely raise the issue again.Rover
Length: 713 miles
Route: From processing plants in Pennsylvania, West Virginia and Ohio to delivery points in Ohio and Michigan
Status: Some segments in service, others under construction; completion expected in early 2018The $4.2 billion Rover project to move up to 3.25 billion cubic feet of gas from Mid-Atlantic shale plays is being developed by Energy Transfer Partners LP, the company behind the heavily protested Dakota Access oil pipeline.
The project had problems with drilling fluid leaks and other environmental issues in Ohio almost as soon as construction started this spring, and the state of Ohio is suing Energy Transfer Partners on charges that it violated state air and water protection laws. West Virginia regulators also briefly stopped construction on the project, and Energy Transfer Partners is operating under construction limitations from FERC.
FERC also has an ongoing investigation into whether the company used unapproved ingredients in its drilling fluid mix. In 2015, Energy Transfer Partners purchased a historic home near the pipeline route with assurances that it would be protected, but instead demolished it. FERC and Ohio state agencies negotiated a settlement for potential violation of the National Historic Preservation Act, and the company paid a portion of the agreed fine but has indicated it will not pay the balance.Mountain Valley
Length: 303 miles
Route: Northern West Virginia to southern Virginia
Status: Approved by FERC; state permits pendingThe $3.5 billion Mountain Valley project is being developed by Pittsburgh-based EQT Corp. and partners to carry shale gas from West Virginia to markets in Virginia. The project has been controversial in Virginia, with pushback from environmentalists and landowner groups, and is the subject of a legal challenge that says the use of eminent domain for the pipeline violates landowners' constitutional rights and the Natural Gas Act.
The project is also notable for an unusual situation in West Virginia, where developers first secured state water permits only to see them withdrawn by the state Department of Environmental Protection in response to charges that the state's review was inadequate. State officials initially said they intended to review the permits but instead opted to waive their right to regulate the project's water quality impacts, a decision that shifts the responsibility onto the Army Corps of Engineers.
When the pipeline was approved by FERC, it received a split vote, with one of the three voting commissioners dissenting on the grounds that the project was similar to the Atlantic Coast project and could potentially be combined with it to reduce their combined environmental impacts.Atlantic Coast
Length: 600 miles
Route: Northern West Virginia to eastern Virginia and North Carolina
Status: Approved by FERC; state permits pendingAtlantic Coast is a $5.1 billion project developed by four energy companies — Dominion Resources Inc., Duke Energy Corp., Piedmont Natural Gas Co. Inc. and Southern Company Gas — to deliver Mid-Atlantic shale gas to local markets in Virginia and North Carolina. It has faced strong local opposition in both states and was a point of debate in a fierce governor's race in Virginia. Democrat Ralph Northam, who largely dodged taking a position on the project but once supported it, won that race.
The Atlantic Coast project and another pipeline with a similar route, Mountain Valley, were approved by FERC in October. The decision triggered a rare dissenting opinion from one of the three sitting commissioners, who said the two projects were largely similar and could potentially be combined to minimize their collective environmental impacts. Atlantic Coast is also the subject of some legal challenges over the use of eminent domain authority.
Another controversy: The pipeline is slated to end 12 miles short of the South Carolina border, but there is speculation — fueled by October remarks by a Dominion Energy Inc. executive — that the developers want to extend it farther.Sabal Trail
Length: 515 miles
Route: Eastern Alabama to central Florida
Status: Partially in service; FERC is conducting supplemental reviewSabal Trail is most notable for sparking a legal battle that forced FERC to take a closer look at the project's climate change impacts.
The $3.2 billion pipeline, part of the broader Southeast Market Pipelines Project, sends gas to power plants in Florida. According to the U.S. Court of Appeals for the District of Columbia Circuit, FERC is required to estimate the greenhouse gas emissions from burning the gas. The August decision was the D.C. Circuit's most forceful decision to date requiring more climate analysis for pipelines.
Now, environmentalists are urging the D.C. Circuit to halt pipeline operations until FERC completes additional review. The agency is working to comply with the court order in a hurry. It issued a draft analysis in September, but critics say it's not enough.
https://www.eenews.net/energywire/2017/11/27/stories/1060067235
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Agency Floats Overhaul of Energy Efficiency Standards
Nov 27, 2017 | E&E Greenwire
By Christa Marshall
The Department of Energy is weighing a complete overhaul of efficiency standards to allow more "flexibility," prompting warnings from environmentalists that the program could be weakened dramatically.
In a request for information Friday, the agency floated the idea of making efficiency standards more like corporate average fuel economy (CAFE) standards for vehicles. That could, in theory, allow efficiency trading, so that manufacturers, companies or industries could buy and sell and products below and above a given efficiency level to meet an overall average.
That would divert from the current DOE system, which requires all products like refrigerators and lightbulbs to meet mandatory efficiency levels.
"Market-based policy mechanisms are potentially less burdensome alternatives as they use markets, price and other economic variables to provide incentives for regulated entities to reduce or eliminate negative environmental externalities in the least cost way," states the document, which is not yet published in the Federal Register.
Its publication would start a 90-day comment period.
The request doesn't outline a specific plan but highlights CAFE and market-based programs, like the cap-and-trade system for acid rain.
In a section on how earlier models would apply to DOE, the document states that a CAFE-style system would allow "manufacturers already producing efficiency models to continue improving efficiency."
Lauren Urbanek, a senior energy policy advocate at the Natural Resources Defense Council, said the concept would substantially affect consumers and possibly lead to a dramatic drop in energy savings.
"Any changes or revisions to the efficiency standards program have to be considered from the perspective of consumers, the people ultimately using the appliances and equipment in question. The trading mechanisms DOE has proposed could lead to market confusion," Urbanek said.
Moving to a trading mechanism could mean that two otherwise identical products could have drastically different energy use — and it may be very difficult for consumers to know which to choose, she said.
Andrew deLaski, executive director at the Appliance Standards Awareness Project, said he was concerned that CAFE-style standards applied to the efficiency program could make it much more complex and increase administrative costs. There also would be concerns about companies gaming such a system, he said.
"You don't want to mess with success. Why change something that has been working very well?" deLaski asked.
At the same time, he said DOE did not appear to want to eliminate the efficiency program, and the document was thoughtful. Having a discussion about how to make the program more efficient, perhaps through a pilot project, is worthwhile, he said.
Under an "anti-backsliding" provision in federal law, DOE can't issue standards lower than what's already on the books, he said.
Francis Dietz, vice president of public affairs at the Air-Conditioning, Heating and Refrigeration Institute, said, "We are pleased that the department is taking this collaborative approach, and we look forward to working with DOE on ways to establish mutually beneficial flexibilities in the appliance standards program."
The Trump administration angered environmentalists earlier this year by not finalizing several efficiency standards issued by the Obama administration. A lawsuit was filed by multiple states (Greenwire, April 3).
DeLaski said the administration also has missed requirements set by Congress for issuing rules on a half-dozen appliances.
"They are falling behind legal deadlines for a number of products," deLaski said.
https://www.eenews.net/greenwire/2017/11/27/stories/1060067347
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LNG Exports Won’t Make Or Break Gas Market, But E&Ps May Benefit
Nov 27, 2017 | Natural Gas Intelligence
By Leticia Gonzales
Vast supplies of low-cost natural gas have put the United States on track to becoming the largest exporter of liquefied natural gas (LNG) within the decade. But before reaching that level of global dominance, a handful of export facilities due to begin service over the next year will provide some much-needed relief to producers in key unconventional plays and serve as a test for a gas market contending with new demand.
Nearly 20 Bcf/d of U.S. approved LNG export facilities are either under construction or waiting to break ground. Already, the United States is exporting roughly 3 Bcf/d of LNG, and that number will grow by more than 1 Bcf/d over the next year as the fourth train at Cheniere Energy Inc.’s Sabine Pass, along with Dominion Resources Inc.’s Dominion Cove Point LNG and Kinder Morgan Inc.’s (KMI) Elba Island LNG facilities enter service.
Still, the new demand won’t make or break the natural gas market. Even with new demand coming from LNG exports, analysts expect weather to remain the key driver for the gas market. Exports, in general, increase baseload demand almost year-round, said RBN Energy gas analyst Sheetal Nasta.
“Of course, we can’t assume they’ll operate at full capacity all the time. So maintenance outages, either on the pipeline or terminal side, could still cause some disruptions/volatility,” Nasta said.
But weather is the key factor the market is watching even as more exports begin commercial service during the height of the winter season. In fact, if the coming winter is a repeat of the last two mild winter seasons, overall demand may not be enough to offset the production growth occurring at the same time, even with incremental LNG export demand.
“Part of why we’ve seen prices go up recently is because we finally had more normal weather in October and in the past week or so, we’ve also seen some much colder-than-normal weather,” Nasta said.
To illustrate how fickle the gas market is, as of Tuesday (Nov. 21), the New York Mercantile Exchange (Nymex) December contract sat at $3.017, more than 20 cents below prices two weeks prior as warming trends in the long-range weather forecasts pressured the market.
For the coming winter, under a scenario where production averages 74-75 Bcf/d, imports are flat to last winter and LNG exports run at full capacity all season, “then you’re going to have 3.5-4.5 Bcf/d more supply in the market this winter than last, and only 3.0 Bcf/d more demand winter on winter,” Nasta said. That includes Mexican exports averaging 4.5 Bcf/d and power, residential/commercial and industrial demand remaining relatively flat to last year.
Meanwhile, 6.0 Bcf/d of new takeaway capacity is coming online this winter, which could boost production even more. The largest among those is Energy Transfer Partners LP’s 3.25 Bcf/d Rover Pipeline, which has begun flowing gas with the second part of the project’s Phase 1 expected online before year’s end.
Columbia Gulf Transmission LLC’s 1 Bcf/d Rayne XPress and Texas Eastern Transmission LP’s (Tetco) Adair Southwest and Access South expansions also have begun service. The in-service date for Columbia Gas Transmission LLC's 1.5 Bcf/d Leach XPress has since been pushed back to January 2018.
Nasta said the market could see a little more demand from exports to Mexico over the next few months too, which could help the market overall.
“But in general, with another mild winter like last year and production near 75 Bcf/d, the balance would be bearish compared to last winter when production averaged only 70.5 Bcf/d. If we get close to normal or below-normal temperatures for much of this winter, however, the balance could end up tightening significantly.”
PA Consulting analyst Michael Bennett agreed that while the market is tight, it also has been waiting for LNG export demand to emerge for years.
“Weather will be and always has been the great unknown with gas markets. 2018 will certainly be a test given that Sabine’s train 4 and Cove Point alone could add an additional 1.2 Bcf/d of demand, but production has started to climb as of late and increased demand could open the door for further production gains,” Bennett said.
However, the high demand experienced to date could foretell what’s to come if cold weather arrives, Bennett said.
“Demand peaked in the upper 90s Bcf/d on Oct. 10, representing some of the highest early winter demand on record,” he said. “This was possible due in part to new export dynamics from both Mexico and LNG. With storage inventories sitting roughly 100 Bcf below the five-year average, a cold winter and this new baseload export demand could result in much larger swings in demand and spot prices.”
If milder temperatures are on tap for the remainder of the winter season, LNG exports would then provide a buffer to prevent a complete fall-out of prices, said BTU Analytics analyst Matthew Hoza.
The Lakewood, CO, analytics company is projecting demand to average 97 Bcf/d this winter, assuming normal weather, “which seems to be a bigger and bigger if,” Hoza said. BTU expects production to average 85 Bcf/d.
Relieving Pennsylvania Takeaway
While LNG exports are not expected to have a material impact on the market immediately, the emergence of new demand should lead to changing dynamics on a regional level, Hoza said. Cheniere’s Sabine Pass facility has the benefit of being located on the Gulf Coast, while Dominion’s Cove Point, for example, would have direct access to the vast supply from the Marcellus and Utica shales.
Cove Point would able to receive gas from Transcontinental Gas Pipe Line Co. (Transco), Dominion and Columbia Gas pipelines, and the project would benefit Appalachian producers, Hoza said, especially once Transco’s Atlantic Sunrise pipeline goes online.
Cabot Oil & Gas Corp. plans to move up to 850 MMcf/d to the terminal via Atlantic Sunrise, but the 1.7 Bcf/d project is not expected in service before mid-2018. The operator is one of a handful of dominant producers active in the bottlenecked northern tier of the Marcellus.
Construction resumed on the project earlier this month after the U.S. Court of Appeals for the District of Columbia denied an emergency motion to stay FERC’s certificate for the expansion. Work was halted for three days while the three-judge panel ordered a temporary administrative stay of the project’s certificate on Nov. 6, forcing Transco parent Williams Partners LP to suspend construction while the court considered an emergency motion filed by a coalition of environmental groups. The court had limited the stay only to construction in Pennsylvania and not other operations outside the state or partial service that was started on the project over the summer.
Atlantic Sunrise would move natural gas from a constrained area in northeastern Pennsylvania to Mid-Atlantic and Southeast markets. Brownfield construction on mainline replacements and equipment modifications started months ago, while greenfield construction started in September.
“Cove Point has said they have other ways to get the gas there, so it’ll be interesting to see how flows evolve there,” Nasta said.
KMI’s Melissa Ruiz, director of corporate communications, said while the gas coming from the Elba Island’s interconnect with Transco is likely to originate from Pennsylvania and Ohio, it could also be sourced from conventional Gulf of Mexico resources off the Transco system through Elba Express Pipeline or from various sources along the Southern Natural Gas (SNG) system.
KMI’s Elba Express Pipeline is a 200-mile system that extends from the Elba Island LNG terminal to the Transco pipeline in Hart County, GA, and Anderson County, SC.
“Transco connects to Elba right near the intersection of Transco zone 4 and zone 5, and I think Transco is still flowing net northbound through part of zone 5, (where the null point on Transco is). Atlantic Sunrise will change that,” Nasta said.
PA’s Bennett agreed, noting backhauls on Transco that would bring Marcellus/Utica supplies to Elba Express may mean that gas would compete with Northeast demand in the winter months. It could present an opportunity for the null point on Transco to swing if Gulf Coast volumes are priced low enough.
Tetco’s Access South can also deliver into SNG. Access South is one of two pipeline reversal projects that Tetco has recently brought online; the other is Adair Southwest. They each target Marcellus/Utica production. Combined, the brownfield projects are designed to add 520,000 Dth/d of incremental north-to-south Appalachian takeaway capacity on Tetco, which runs from the Gulf Coast to the Northeast.
Tetco’s initial in-service request to FERC included 416,000 Dth/d of the total designed capacity [CP16-3]. The pipeline expects to ramp up to 500,000 Dth/d on the expansions later this month.
Exports Won’t Egg E&Ps To Ramp Up
Meanwhile, the growth in LNG exports, particularly on the East Coast, has undoubtedly been a consideration for some E&Ps making their production plans for 2018. While most producers are making decisions based on numerous market dynamics and financial obligations, both Cabot and Antero Resources Corp. have supply contracts with off-takers at the Cove Point facility.
“Unless these producers have enough drilled but uncompleted wells to support an extra 600 [Mcf] or so a day of demand, they have most certainly been preparing for this new demand,” Bennett said.
With Cabot being subscribed to large amount of the Atlantic Sunrise project, the producer can opt to send these molecules to the Atlantic Seaboard and Southeast in the event gas is not needed at the Cove Point, which will put downward pressure on pricing in these regions, he said.
For others producers, however, the recurring theme in most E&P 3Q2017 earnings calls was spending within cash flow.Speaking during the 3Q2017 call, Devon Energy Corp. CEO Dave Hager was blunt. “We fully acknowledge that our industry in general has not delivered acceptable returns. And that we are absolute -- and I would include Devon in it -- we are absolutely committed, on a go-forward basis, to deliver acceptable returns at the corporate level to our shareholders.”
During Southwestern Energy Co.’s 3Q2017 earnings call, CEO Bill Way said the focus is on creating value and improving returns on every dollar it invests.
“We'll take the options of investing at the drillbit and weigh those with debt reduction and any other options that come to the table” to create the highest value-adding plan to go forward,” Way said. This “isn't about production growth at all costs; it hasn't been for us, and it won't be for us going forward. It's an outcome.”
Chesapeake Energy Corp. CFO Nick Dell’Osso echoed those sentiments on third quarter call, indicating the focus continues to be “value versus volumes.” He said the operator would “remain flexible with our capital should prices rise or fall dramatically, but we do not plan to chase capital higher as a result in the recent modest increase in the 2018 strip.”
LNG Exports At A Glance
More than 1 Bcf/d of LNG exports will soon hit the U.S. gas market, laying the groundwork for a major structural shift toward more flexible and globalized gas markets.
Cheniere, the first mover in the Lower 48 for exports, achieved first production at the fourth train of its six-train Sabine Pass in Louisiana last summer. Commissioning cargoes have boosted deliveries to more than 3 Bcf/d. The company is on track for that cargo to see a date of first commercial delivery (DFCD) in the first half of 2018, management said.
For the first five LNG trains at Sabine Pass, 19.75 of the 22.5 million metric tons/year (mmty) nominal production capacity (about 88%) has been contracted to third party, foundation customers on a long-term free-on-board basis under sale and purchase agreements (SPA). Foundation customers include Royal Dutch Shell plc, Gas Natural Fenosa, Korea Gas Corp., Gail (India) Ltd., Total SA and Centrica plc. Any excess capacity not sold under long-term SPAs to foundation customers is available for Cheniere marketing.
During the quarter, Cheniere exported a total of 44 LNG cargoes from Sabine Pass, said CEO Jack Fusco said during the 3Q2017 earnings call. A total of 144 TBtu of LNG was loaded during the quarter, including 18 TBtu of commissioning cargoes. To date, a total of 200 LNG cargoes have been exported from Sabine Pass to 25 of the world's 40 importing countries. Cheniere also is building an export terminal in Corpus Christi, TX.
Meanwhile, Cove Point is underway with commissioning activities in Maryland. The project is nearly completed and in the final phase of start-up, according to Community Relations Manager Karl Neddenien.
“We have completed the initial operating run on our auxiliary boilers, steam turbine generators, Frame 7EA combustion turbines and numerous motors, pumps and compressors that are part of the liquefaction process,” Neddenien said.
The facility, with a capacity of about .75 Bcf/d, would be bidirectional, offering import and export capability. Commercial service at the facility -- the first on the East Coast -- should begin by the end of the year.
Cove Point’s marketed capacity is fully subscribed under 20-year service agreements. Pacific Summit Energy LLC, a U.S. affiliate of Japan's Sumitomo Corp., as well as Gail (India) affiliate Gail Global (USA) LNG LLC, each have contracted for half of the marketed capacity. Sumitomo has agreements to serve Tokyo Gas Co. and Kansai Electric Power Co. Inc.
Finally, KMI, which has partnered with EIG Global Energy Partners, is expecting to bring online its 10-train Elba Island LNG facility beginning in mid-2018. Capacity at the 2.5 mmty facility is fully subscribed by Shell.
“Construction activity at Elba Island is well underway, and the first unit has been completely shipped and delivered to Elba Island and has already been placed on its foundation,” said KMI’s Ruiz.
The Elba Island facility differs from the other U.S. facilities as each of the 10 modular units is rated at about .25 mmty, or 35,000 Mcf/d. Each unit was built in Texas and shipped in components to be erected on site in a sequential manner over one year, with the final unit expected to be placed in service by mid-2019, Ruiz said.
Each of the units is a standalone liquefaction facility that can be erected, commissioned and operated independently. The LNG outflow from each unit would flow into the existing common storage and loading facilities on Elba Island, she said.
“At the time the project was originally conceived, modular liquefaction units such as these were not common; however, in recent times other developers have begun to see the advantages associated with smaller liquefaction units similar to those being installed at Elba,” Ruiz said. “These smaller-type modular liquefaction units provide increased operating flexibility at a competitive cost in the marketplace.”
Indeed, Cheniere in October proposed to FERC a new design for trains 4 and 5 at the Corpus Christi facility, which would instead use seven smaller trains and increase the throughput capacity to 9.5 mmty, or 1.36 mmty at each mid-scale train [No. PF15-26-000]. The original capacities of the proposed trains 4 and 5 were 4.5 mmty each (9 mmty total).
The new design provides an extra 0.5 mmty in total throughput capacity. Trains 1 and 2, currently under construction, fall under stage 1 of development. Stage 2 would add train 3, which is awaiting a final investment decision. The new Stage 3 plan calls for seven mid-scale electric drive trains, as opposed to the natural gas-driven compressors used at Sabine Pass and at the first three trains at Corpus Christi.
Cheniere expects to file its application with the Federal Energy Regulatory Commission early next year, and also plans to update its worldwide free/non-free trade agreements because of increasing the throughput.
In a bullish outlook for the growth of overall U.S. LNG exports by 2024, Mizuho Securities LLC's energy research group said the expansion includes small-scale and mega projects. Smaller facilities are looking to drive down costs significantly, according to analyst Tim Rezvan. U.S. exports are expected hit a projected 53 Bcf/d, or 400 mmty, in 2024, compared to 2016 totals of 34 Bcf/d, or 260 mmty, he said.
"The United States is expected to be competitive in fighting for market share, given the deep inventory of low-cost natural gas available," Rezvan said.
Meanwhile, Sempra Energy’s Cameron LNG project in Hackberry, LA, previously expected to come online next summer, has been pushed to 2019 because of engineering, procurement and construction issues by a principal contractor, Chicago Bridge & Iron Co. NV. During a 3Q2017 earnings conference call, Sempra CEO Debra Reed reiterated that the first three trains would be operating in 2019.
"We firmly believe that from everything we see now that Cameron will be liquefying gas on all three trains come 2019," Reed said. "They've made a lot of progress on construction, and things seem to be going very well,” with little impact from last summer’s Hurricane Harvey.
Export Model Not One-Size-Fits-All
The U.S. LNG export business, still in its infancy, is sure to lead to changes as fundamentals and market conditions change. It’s a major consideration for companies like KMI, who opted to have the facility’s capacity fully subscribed as a means of protecting itself from the fluctuations that could arise in the market.
“Unlike some other developers who do not have their facilities fully subscribed and have decided to participate in LNG market volatility by selling LNG commodity themselves, we have chosen to implement a tolling model which provides us with a low-risk, long-term steady revenue stream associated with a fully subscribed facility,” KMI’s Ruiz said.
Cheniere, meanwhile, not only processes the gas into LNG under a tolling model, the company also procures supply used for feedstock. Once the natural gas is liquefied, the customer takes delivery at the tailgate of the terminal. As a result, Cheniere is expected to become one of the largest buyers of natural gas in the U.S. once all of the trains are operational.
Cheniere’s gas procurement business has secured long-term transportation capacity on many pipelines to ensure reliable gas deliverability and diverse access to multiple producing basins. It also entered into several supply arrangements to purchase natural gas from suppliers at prices discounted to applicable market indices.
With no one-size-fits-all approach in the LNG export business, PA’s Bennett said 2018 is going to be a test for the U.S. LNG market. He likened the LNG market in 2018 to the power market in 2016, when most of the coal retirements resulted from the Environmental Protection Agency’s Mercury and Air Toxics Standards, and Henry Hub pricing around $2.50.
“It was a good test of the new dynamics and baseload shifts in power burn, and the market got a feel for how high burn could actually go,” he said.
Most available information indicates that cargos will be indexed to Henry Hub, which makes hedging easier. Contract holders have typically paid a fixed fee for the right to export LNG, somewhere in the $2-3.50/Mcf range, and then they pay Henry Hub +15% when they actually export gas, Bennett said.
“Depending on the specifics of the offtaker’s contracts at Cove Point and Elba Island, we could see capacity holders decide to sell their gas in the U.S. spot market if regional prices spike high enough. This is especially true for Cove Point, which has direct access to Transco Zone 6 non-NY. Alternatively, we could see those off-takers lift cargos despite spreads to the ultimate destination being negative.”
Most decisions to lift a cargo would be made on a spot basis, he said, assuming the contract holder has no downstream obligations that would make uneconomic netbacks irrelevant. This contract structure is somewhat analogous to firm capacity on natural gas pipelines.
“You pay an upfront fee for the right to move gas, and then pay a small commodity charge when you actually flow volumes, but there is no obligation to move that gas,” Bennett said.
http://www.naturalgasintel.com/articles/112546-lng-exports-wont-make-or-break-gas-market-but-eps-may-benefit
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D.C. Circuit Grants Former Obama Officials Role in RMP Delay Suit
Nov 27, 2017 | Inside EPA
A federal appeals court has granted former Obama worker safety officials' request to back environmentalist and Democratic state attorneys general in a suit challenging the Trump administration's nearly two-year delay of Obama EPA revisions tightening the Risk Management Plan (RMP) facility accident prevention rule.
In a Nov. 21 order, the U.S. Court of Appeals for the District of Columbia Circuit grants the request from David Michaels and Jordan Barab, the former chief and deputy chief of the Obama Occupational Safety and Health Administration (OSHA), as well as former Chemical Safety Board (CSB) member Beth Rosenberg to participate as amicus curiae in the case, Air Alliance Houston, et al v. EPA, et al.
In the same order, the court also grants a similar request for amici status from the Institute for Policy Integrity at the New York University School of Law, which has faulted the Trump EPA's economic analysis supporting the delay.
Environmental, labor and 11 Democratic state attorneys general are challenging EPA Administrator Scott Pruitt's June 14 rule delaying implementation of the Obama RMP rule by 20 months from June 19, 2017 to Feb. 19, 2019. Pruitt claimed broad Clean Air Act authority to set effective dates after seeking public input, and has signaled that the administration plans to significantly revise the Obama-era rule updating the agency's RMP rule with new requirements.
In a Nov. 1 amicus brief in the case, the former Obama OSHA and CSB officials backed petitioners' arguments that the Trump administration's delay of the RMP rule violates a Clean Air Act limit on delaying effective dates and the Administrative Procedure Act.
“The Delay Rule was not based on analysis of whether the new effective date would fulfill the protective purposes of the Chemical Disaster Rule or was necessary to make industry compliance with its provisions practicable,” the former officials have said. “[R]ather, it was explicitly designed to spare industry the burden of complying or even having to prepare to comply with the rule while EPA reconsidered it.”
The Obama EPA's Jan. 12 final RMP update rule brought new requirements for independent audits, hazard analysis, as well as provisions for streamlining release of facility data to first responders and the public. EPA issued the rule in response to an executive order on improving facility safety issued after an April 2013 fertilizer facility explosion in West, TX, killed 15 people, including first responders.
https://insideepa.com/daily-feed/dc-circuit-grants-former-obama-officials-role-rmp-delay-suit
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CSX Train Carrying Harmful Chemicals Derails in Florida
Nov 27, 2017 | Reuters (In The New York Times)
By Gina Cherelus
(Reuters) - A CSX Corp freight train carrying hazardous molten sulfur derailed in central Florida on Monday, prompting authorities to tell residents to stay indoors for several hours, company officials said.
No one was hurt, Jacksonville, Florida-based CSX said in a statement.
The train was traveling to Winston, Florida, from Waycross, Georgia, when nine carriages, including four with molten sulfur, went off the track at around 2 a.m. EST in Lakeland, Florida, nearly 60 miles south of Orlando, said CSX spokesman Rob Doolittle.
CSX officials said in the statement that several of the derailed cars were reported to be leaking molten sulfur, which is used in making rubber, detergent and fertilizers.
"CSX personnel and contractors have responded to the site to assess the situation and develop a plan to remediate the scene, re-rail the affected cars and restore service," the statement said.
Fire department officials in Polk County, Florida, had spotted several train cars rolled over and mangled after returning from a medical call, authorities said. A small fire was extinguished by firefighters.Continue reading the main story
As a precaution, emergency officials initially ordered local residents to remain in their homes with the windows closed and to shut off their air conditioners.
That order was lifted shortly before 9 a.m., but residents were advised to stay away from the derailment site as officials work to clean the spillage and remove the damaged cars.
Molten sulfur, a highly flammable chemical with a faint odor of rotten eggs, can release poisonous gases such as hydrogen sulfide, which can be lethal to those exposed to it, according to the National Oceanic and Atmospheric Administration's website. The chemical is transported at elevated temperatures, typically at 290 degrees Fahrenheit (134 degrees Celsius), to prevent solidification.
The train, comprised of three locomotives, 120 loaded railcars and 72 empty railcars, was carrying a variety of other cargo, including cardboard, oats and rocks, CSX officials said.
(Reporting by Gina Cherelus in New York; Editing by Lisa Von Ahn)
https://www.nytimes.com/reuters/2017/11/27/us/27reuters-florida-train-derailment.html
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Trump Races to Pick Judges Who Oversee Environment Cases
Nov 27, 2017 | E&E Climatewire
By Robin Bravender and Scott Waldman
President Trump has dismissed global warming as a hoax, snubbed the Paris emissions pact and scrapped U.S. EPA climate rules.
But executive actions can be fleeting — as the Trump administration has shown by moving swiftly to unravel many of President Obama's climate change policies.
Yet there's a major piece of Trump's climate legacy that could be more enduring: his court picks. The Trump administration has acted expeditiously to fill vacancies on top courts around the country, including the Supreme Court and powerful lower courts that could decide the fate of regulatory challenges and novel lawsuits, like localities suing oil companies for damages caused by sea-level rise. Those judges could be weighing in on climate change cases long after Trump leaves 1600 Pennsylvania Ave.
Trump's judicial appointments rank "pretty high" in terms of his climate change legacy, said Glenn Sugameli, who runs the Judging the Environment project, which tracks judicial nominees' environmental records.
"They're the ones that are going to determine whether the actions taken by the Obama administration, by states and local governments are justified, are legal, are sustainable," he said. And "they're the ones that are going to decide whether the actions taken by the Trump administration are legal."
Richard Lazarus, an environmental law expert and professor at Harvard Law School, said courts have played an "outsized role" in climate policy in recent years because regulators are working with an old law to deal with a problem its authors weren't specifically addressing.
"The reason why the courts play a big role right now is that, whether the executive branch is run by [President George W.] Bush or the executive branch is run by Obama, each time they're kind of stuck with old language," Lazarus said, noting that the 1970 Clean Air Act hasn't seen a major overhaul since 1990.
The Obama administration tried to use the existing language to support the administration's signature climate rule, the Clean Power Plan, and "you can expect that Trump judges would be more skeptical of those activities."
Trump has already picked one Supreme Court justice, Neil Gorsuch, a conservative whose appointment was viewed by some as a nail in the coffin for legal efforts to preserve the Clean Power Plan. Court watchers predict Trump may make one or more additional Supreme Court nominations before his term expires.
Legal experts note that judges' opinions in environmental cases won't necessarily fall strictly along ideological lines, but that conservative judges are often more likely to reject arguments calling for more regulation or trying to fit climate change rules within the existing Clean Air Act.
Lazarus pointed to Brett Kavanaugh, a conservative judge on the U.S. Court of Appeals for the District of Columbia Circuit, as an example of a jurist who "is not ready to give EPA a lot of deference if they're taking language which was crafted at one time and trying to push it at the edges to deal with a problem of another time, like climate change." Kavanaugh, a Bush appointee who sits on the court that hears challenges to Clean Air Act rules, became known as a vocal critic of Obama EPA rules.
Kavanaugh's name was tacked on earlier this month to a list of Trump's potential Supreme Court nominees. Trump has touted the fact that the names on his list — some of whom he has already appointed to lower court jobs — have been vetted by "respected conservative leaders."
The judiciary's role over climate policy could change, Lazarus said. "If Congress steps up to the plate, then the courts won't be so significant."
But recent efforts on Capitol Hill to tackle climate change have foundered, and the political polarization in Congress makes the prospects for such controversial legislation dim. So in the near term, executive actions are likely to continue, as are efforts to unravel them in court.
Beyond challenges to federal rulemaking, many of which are resolved in the D.C. Circuit court, there are other climate lawsuits underway across the country that could ultimately be heard by Trump appointees.
In California, for example, a city and two counties are suing oil companies, arguing that the companies' greenhouse gas emissions are pushing sea levels up. In another case at a federal district court in Oregon, a group of kids is suing the federal government over its contributions to climate change.
Michael Gerrard, director of the Sabin Center for Climate Change Law at Columbia Law School, said he's also expecting to see "a lot more litigation about fossil fuel extraction, especially on federal lands and waters," as the Trump administration seeks to expand domestic energy production.Can Trump tip ideology?
With widespread vacancies in federal courts at the end of Obama's term and more openings since Trump took office, the administration has the potential to remake the federal judiciary and shape numerous legal decisions related to climate and environmental policy.
Trump has already appointed eight appellate court judges, a rapid pace that's been fueled by the GOP-controlled Senate and pressure from conservative advocacy groups. The administration has focused on longevity over experiences in some cases, ensuring that the judges would shape key legal decisions for years. Brett Talley, 36, was nominated for a federal district court in Alabama even though he has virtually no trial experience.
The swift pace of confirmations is in large part due to a rule change enacted by Democrats when they controlled the Senate and were flustered by efforts to stymie Obama's court picks. In 2013, the Democrats enacted the so-called nuclear option, requiring 51 votes instead of 60 to clear executive branch and some judicial nominees.
Another rule shift in the Senate could signal that Republicans are open to an even quicker approval process that also strips Democrats of what's been their primary leverage in blocking court appointees. The so-called blue slip process allows lawmakers to weigh in on judicial nominees in their states. It was kept in place during the Obama administration, by agreement of Republicans and Democrats. But earlier this month, Senate Judiciary Chairman Chuck Grassley (R-Iowa) threw out the process for some judicial nominees after Sen. Al Franken (D-Minn.) blocked a Trump nominee from his state.
While the pace of appointments is significant, it would likely take years for the Trump administration to equal the influence of the Obama administration, said Jonathan Adler, director of the Center for Business Law and Regulation at the Case Western Reserve University School of Law. He noted that the Obama administration appointed about 40 percent of the federal judiciary in active service. He said if Trump is president for eight years, he could have a similar influence. But it will take years for Trump to tip the ideological balance of the courts, he said.
"What's interesting here is that this administration is moving more aggressively and more quickly than administrations usually do at the beginning of their terms, and that may be a cause or a consequence of the fact that the administration has not been able to do much else, certainly not legislatively," he said. "There is every reason to think this will be a lasting legacy of the Trump administration, but it takes awhile for that effect to really manifest itself."
Still, when Trump was inaugurated, there were more than 110 vacancies on the federal courts, representing about 12 percent of the total judiciary, and the most for any incoming president since Bill Clinton took office, according to Adler.
For now, the effect of Trump's appointments on environmental policy is limited because his appointments have not tipped the balance of liberal and conservative judges in any of the key appeals courts, including the 9th Circuit in California that encompasses Nevada, Oregon, Washington, Idaho, Montana, Alaska, Arizona, Hawaii, Guam and the Northern Mariana Islands. Trump has also not tipped the balance in the 10th Circuit, where federal land cases might be heard, and which includes Utah, Wyoming, Colorado, New Mexico, Kansas and Oklahoma.
The administration has nominated a judge to the D.C. Circuit, which is tremendously influential in federal policy, but that move would replace a conservative with a conservative. The balance on that court still favors Democratic nominees, who make up seven active members of the court compared with four Republicans.
Any shift in the courts toward a more conservative bent on environmental policy would reset the balance of power away from the federal government and back toward the states where it belongs, said Hans von Spakovsky, senior legal fellow at the Heritage Foundation, which has been instrumental in helping the Trump administration shape the courts.
He said EPA and other federal agencies that set environmental policy have exceeded the bounds of their authority in recent years and that the federal role has overshadowed the state role in environmental policy, where the two should be equal. He said Trump's judicial appointments will bring the federal government back inside the bounds of legislation passed by Congress.
"Conservatives, just like liberals, want a clean environment," Spakovsky said. "But we expect federal agencies to act within the authority delegated to them by Congress and to do so in compliance with all applicable laws and regulations. Trump's judges will help make sure that happens."
https://www.eenews.net/climatewire/2017/11/27/stories/1060067245
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EPA Official Explains Why More Time's Needed for Brick Rules
Nov 27, 2017 | E&E Greenwire
By Sean Reilly
A senior U.S. EPA official attempts in a new court filing to explain what EPA lawyers recently couldn't: why the agency needs almost two years to again revisit air emission standards for the brick industry that were originally due in 2000.
The declaration by Panagiotis Tsirigotis outlines a 16-step schedule for developing a new set of regulations following EPA Administrator Scott Pruitt's decision to reconsider parts of the 2015 Obama-era version in light of concerns raised by brick and ceramic tile manufacturers.
Tsirigotis, the longtime chief of the Sector Policies and Programs Division in EPA's Office of Air Quality Planning and Standards, filed the declaration, which he said also "takes in consideration" other obligations that the division must meet during the same two-year period, last Wednesday with the U.S. Court of Appeals for the District of Columbia Circuit.
Under the timetable, Tsirigotis wrote that he expects to have a proposed rule ready for Pruitt's signature by next September, followed by the final regulations in June 2019, or about two months ahead of the date the administrator initially set in agreeing to grant reconsideration (Greenwire, Nov. 6).
Budget and other resource constraints "influence the manner and schedule by which EPA takes actions under the [Clean Air Act]," Tsirigotis said.
The declaration is a belated response to questions posed by a three-judge panel on the D.C. Circuit at Nov. 9 oral arguments over litigation surrounding the 2015 regulations (Greenwire, Nov. 9).
To the judges' ire, two attorneys representing EPA were then unable to detail how the agency decided that another two years was warranted to revise the rule.
Among the steps outlined in Tsirigotis' timetable: the development of detailed regulatory options by a project work group, briefings for senior EPA officials who will decide which options to fold into the new regulations, and reviews by the White House Office of Management and Budget of both the proposed and final rule.
Under the 1990 Clean Air Act Amendments, the maximum achievable control technology (MACT) standards for brick and tile manufacturers were due in 2000. The 2015 regulations replaced an earlier version that the D.C. Circuit struck down in 2007 as inadequate. Until last week, one of the attorneys of record for the Brick Industry Association, an industry plaintiff, was Bill Wehrum, who became head of EPA's Office of Air and Radiation on Nov. 13.
Wehrum, formerly with the firm Hunton & Williams LLP, formally withdrew from the case last Monday. Before winning Senate confirmation for the EPA post, Wehrum had said he would not participate in matters involving former clients for a year after last providing a service.
https://www.eenews.net/greenwire/2017/11/27/stories/1060067349
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