NATURAL GAS

EnerKnol’s Visual Primer – SoCalGas Seeks Authorization to Resume Gas Injections at Aliso Canyon

Southern California Gas has requested regulatory approval to resume natural gas injections at the Aliso Canyon storage facility, nearly one year after a massive leak prompted regulators to ban injections into the underground storage field until the completion of a comprehensive review. The interagency task force, established in response to the incident, has issued recommendations for additional actions to reduce similar incidents in the nation’s 400 plus facilities. The PHMSA is set to issue the first federal standards for underground natural gas storage facilities incorporating the task force recommendations.

Pennsylvania Issues New Regulations for Unconventional Drilling

The Pennsylvania Department of Environmental Protection has published regulations to set performance standards for surface activities associated with unconventional drilling, representing the first update to oil and gas well regulations since Marcellus shale development transformed natural gas production in the state. Some of the changes implement the requirements of Act 13 enacted in 2012 to overhaul Pennsylvania’s oil and gas regulations. The Pennsylvania Supreme Court has rescinded several provisions of Act 13, reflecting support for municipal authority in the light of several state decisions that quashed local bans on hydraulic fracturing.

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EnerKnol’s Visual Primer – Pennsylvania Issues New Regulations for Unconventional Drilling

The Pennsylvania Department of Environmental Protection has published regulations to set performance standards for surface activities associated with unconventional drilling, representing the first update to oil and gas well regulations since Marcellus shale development transformed natural gas production in the state. Some of the changes implement the requirements of Act 13 enacted in 2012 to overhaul Pennsylvania’s oil and gas regulations. The Pennsylvania Supreme Court has rescinded several provisions of Act 13, reflecting support for municipal authority in the light of several state decisions that quashed local bans on hydraulic fracturing.

Ohio Approves 1,105 MW Natural Gas-Fired Power Plant Adding to List of Projects Replacing Coal

The Ohio Power Siting Board has approved South Field Energy’s proposal to construct a 1,105 MW natural gas-fired electric generation facility in Ohio’s Columbiana County. The project adds to the growing list of natural-gas fired power plants taking over the market share of coal-fired generation that is retiring due to tighter environmental regulations and higher costs.

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EnerKnol’s Visual Primer – Ohio Approves 1,105 MW Natural Gas-Fired Power Plant Adding to List of Projects Replacing Coal

The Ohio Power Siting Board has approved South Field Energy’s proposal to construct a 1,105 MW natural gas-fired electric generation facility in Ohio’s Columbiana County. The project adds to the growing list of natural-gas fired power plants taking over the market share of coal-fired generation that is retiring due to tighter environmental regulations and higher costs.

Access Northeast $3B Pipeline Project in Peril as Utilities Cancel Capacity Contracts

After a court ruling forbidding the Massachusetts Department of Public Utilities to approve contracts requiring electric customers to pay for new gas pipelines, electric utilities have withdrawn their petitions to acquire capacity on the Access Northeast. The ruling deals a setback to New England state plans examining ways to advance regional pipeline projects through capacity contracts with electric distribution companies.

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Enerknol’s Visual Primer – Access Northeast $3B Pipeline Project in Peril as Utilities Cancel Capacity Contracts

After a court ruling forbidding the Massachusetts Department of Public Utilities to approve contracts requiring electric customers to pay for new gas pipelines, electric utilities have withdrawn their petitions to acquire capacity on the Access Northeast. The ruling deals a setback to New England state plans examining ways to advance regional pipeline projects through capacity contracts with electric distribution companies.

Impact of New Pipeline Infrastructure Tied to Firm Capacity Contract Debates

On May 2, 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment for the Atlantic Bridge natural gas pipeline project that would supply New England states and the Maritime provinces of Canada. The project would provide additional firm pipeline capacity required to meet Northeast market growth and has preexisting agreements to account for its entire capacity. FERC has convened a technical conference to consider wholesale market rules that encourage firm capacity contracts to facilitate pipeline expansions and projects. Electric market design changes providing ways to recover the cost of firm pipeline capacity – where needed for electric reliability – would support existing and incentivize additional pipeline infrastructure necessary to alleviate constraints.

California Addresses Gas Shortage Risks Following Aliso Canyon Leak

On April 5, 2016, California energy agencies released an action plan identifying measures to preserve gas and electric reliability in the greater Los Angeles area following a major leak at the Aliso Canyon underground natural gas storage facility. The plan is expected to reduce the possibility of electric interruptions, although it will not completely eliminate the risk. The incident, which has triggered regulatory efforts at state and federal levels, could bolster the Administration’s plans to curb methane emissions and further regulate underground storage.

PHMSA Proposes Revisions to Expand Scope of Natural Gas Pipeline Safety Regulations

On March 17, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed revisions to safety standards for onshore natural gas transmission and gathering pipelines. The revisions could impose significant regulatory requirements for additional miles of natural gas pipelines, including pre-1970 pipelines previously exempt from PHMSA regulations, and are estimated to cost industry between $39.8 and $47.4 million a year. Regulatory requirements for automatic shut-off valves and underground storage have been postponed for future rulemaking.

California Leak Exposes Risks of Increasing Reliance on Natural Gas

Key Takeaways: The California Department of Conservation (DOC) will issue emergency natural gas storage regulations in response to a persistent leak at the Aliso Canyon Natural Gas Storage Facility in Los Angeles County This incident exposes underground storage risks and regulatory disparity as utilities continue to increase natural gas-fired generation Innovative methane detection technology will…...

Regulators Reconsider Utility Hedging Policies Given Shifts In Natural Gas Flow

Key Takeaways: Florida’s investor-owned utilities will continue to employ current natural gas hedging practices, which have resulted in approximately $6B opportunity costs Evolving supply-demand dynamics of the natural gas market spur utility commissioners to reconsider hedging policy Ongoing state efforts to enhance hedging mechanisms reflect the need for long-term supply contract structures   Insight for…...