Environment

Shell Chemical Wins Air Permit for Proposed Marcellus Ethane Plant

MONACA, Pa. (AP) — Shell Chemical has been granted an air quality permit for a proposed petrochemical plant in western Pennsylvania, a step the company called "a critical milestone" as it decides whether to build the multibillion-dollar project along the Ohio River. The state Department of Environmental Protection announced Monday that it had approved the company's air quality plan and several water-related permits for the site in Potter Township, Beaver County.

Ethanol Production May Be Approaching 'Blend Wall'

It’s onward and stubbornly upward for the U.S. ethanol industry, which shows little sign of slowing after a record year in 2014. Weekly ethanol production matched its record high in the first week of June, equaling output from the week ending December 19, 2014. At 992,000 bpd, production is up 20,000 bpd from last week and more than 100,000 bpd since the beginning of May.

Photos of Ruptured West Coast Pipeline Offer Clues of Reason for Leak

LOS ANGELES (AP) — Photos of the pipeline that spilled oil on the Santa Barbara coast show extensive corrosion and provide clues about the cause of the rupture, experts said. Corrosion visible around the crack, coupled with wear documented inside the pipe, led Robert Bea, a civil engineering professor emeritus at the University of California, Berkeley, to believe the pipe burst during a pressure spike when the operator restarted pumps that had failed the morning of the May 19 spill.

Changes to PHMSA Rules Affect Wide Range of Inspections, Reports

The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) published a new final rule amending the pipeline safety regulations for both gas (§192) and liquid (§195) in multiple subject areas. The final rule also made several editorial changes in the regulations. The changes are effective Oct. 1.

Presidents Report Finds Energy Infrastructure Needs Major Investments

The need for major changes to the nation’s energy infrastructure is why President Obama initiated a quadrennial cycle of energy reviews to provide a multiyear roadmap for U.S. energy policy. The result is the recent release of the initial installment of the first-ever Quadrennial Energy Review 2015 (QER) prepared by the White House task force.

TransCanada Ready To Begin Work on B.C. Gas Pipeline

TransCanada made a positive final investment decisionfrom LNG for the proposed Pacific NorthWest (PNW) LNG liquefaction and export facility in the Port Edward district of British Colombia. “This development is a significant step forward,” said Russ Girling, TransCanada's president and chief executive officer. The move advances the company’s $46 billion capital growth plan, which includes more than $13 billion in proposed natural gas pipeline projects in support of the emerging LNG industry on the B.C. coast.

Oil, Gas Operators Managing Risks When Energy Prices are Down

Today, let’s imagine that we are a company producing oil and gas in the Eagle Ford Shale, the Permian Basin, and the Denver-Julesburg Basin in Colorado. We own and operate well pads, pipelines flowing from wells to facilities treating those flows, and bigger pipelines which take our products to sales points and “ring the cash register.”

Crude by Rail Boosts West Coast Supply as Regional Production Falls

While U.S. crude oil production increased by nearly 3.2 MMbpd from 2010 to 2014, production in the West Coast region decreased by 100,000 bpd, continuing a long-term decline, EIA data showed. With no major crude oil pipelines connecting the West Coast to other parts of the country, refineries on the West Coast adjusted by increasing imports of foreign crude oil, reaching an average of 1.1 MMbpd over the past five years.

California Oil Spill Cleanup Cost Reaches $62 Million

GOLETA, CA — The cost of cleaning up the oil spill that fouled beaches last month on the California coast has reached $62 million so far, pipeline company Plains All American Pipeline said Wednesday. Costs are running at $3 million a day, and there is no timetable for when the cleanup will be complete, the company's on-scene coordinator, Patrick Hodgins, told The Associated Press. The Plains All American is responsible for footing the bill after a pipeline break near Santa Barbara forced the closure of two state beaches and prompted a fishing ban in the area.

Developing Engineering-Based Integrity Programs for Pipelines, Plants

Integrity assessment has always been a part of operations and maintenance activities. As plant piping and pipeline infrastructure has aged, industry first developed basic tools, and as their importance became apparent, these tools improved to meet those increasing needs.

PG&E Completes Cast-Iron Replacement, Earns Safety Certifications

Since Pacific Gas and Electric Company (PG&E) finished replacing all 835 miles of cast-iron pipeline in its system ahead of its 2014 year-end goal, the company has turned its attention to further modernizing its infrastructure with the latest gas-safety technology and by building a skilled workforce. The decommissioning of cast-iron pipe, which began in 1985, covered enough distance to run from Seattle to San Francisco, and has been followed by implementation of one of the most comprehensive modernization programs in the nation.

Pipeline Firm Told California Oil Spill 'Extremely Unlikely'

LOS ANGELES (AP) — A Texas company whose ruptured pipeline created the largest coastal oil spill in California in 25 years had assured the government that a break in the line while possible was "extremely unlikely" and state-of-the-art monitoring could quickly detect possible leaks and alert operators, documents show. Nearly 1,200 pages of records, filed with state regulators by Plains All American Pipeline, detail a range of defenses the company established to guard against crude oil spills and, at the same time, prepare for the worst should a spill occur.

Former BP Cleared of Lying about Oil Spill

NEW ORLEANS (AP) — A federal jury has found a former BP executive not guilty of making false statements to investigators in connection with the 2010 Gulf of Mexico oil spill. Prosecutors said David Rainey, the former vice president of Exploration for the Gulf of Mexico, in the early days of the spill, manipulated calculations to match a far-too-low government estimate of the amount of oil spewing into the Gulf following the explosion of the Deepwater Horizon drilling rig. However, defense attorneys said Rainey's figures were made honestly and that he had no reason to lie.

EPA: No widespread Harm to Drinking Water from Fracking

WASHINGTON (AP) — Hydraulic fracturing to drill for oil and natural gas has not caused widespread harm to drinking water in the United States, the Environmental Protection Agency (EPA) said Thursday in a report that also warned of potential contamination of water supplies if safeguards are not maintained.

Ruptured Santa Barbara Pipeline Badly Corroded, Report Says

LOS ANGELES (AP) — A pipeline rupture that spilled an estimated 101,000 gallons of crude oil near Santa Barbara last month occurred along a badly corroded section that had worn away to a fraction of an inch in thickness, according to federal regulators. The preliminary findings released Wednesday by the federal Pipeline and Hazardous Materials Safety Administration point to a possible cause of the May 19 spill that blackened popular beaches and created a 9-mile slick in the Pacific Ocean.

Opportunities Burning Bright for Natural Gas, AGA Chairman Says

At least for his new role as 2015 chairman of the American Gas Association Terry D. McCallister doesn’t have far to travel. The 59-year-old natural gas executive who is chairman and CEO of WGL Holdings and Washington Gas Light Co., the 165-year-old utility company that services the Potomac region, has plenty on his plate these days, as this interview found, so time is at a premium.

Government: House Leaders Sound Alarm over Slow Pipeline Safety Regulations

Key House members berated the federal pipeline safety agency in advance of upcoming efforts by Congress to reauthorize federal pipeline safety laws. Leaders of the House Subcommittee on Railroads, Pipelines and Hazardous Materials were harshly critical of the Pipeline and Hazardous Materials Safety Administration (PHMSA) for failing to complete numerous rulemakings stemming from the 2012 Pipeline Safety Act. Hearings in the subcommittee took place April 14. That unhappiness could result in more onerous safety regulations for natural gas transportation companies.

In The News: Obama Gives Final Approval to Cove Point LNG Terminal

The Obama administration on May 7 granted final approval to a $3.8 billion natural gas export facility in Calvert County, MD – the first gas export site on the East Coast. Environmentalists sued within hours to stop the project.

Wood Group CEO Puts Core Values to Work

Bob Keiller, CEO of Wood Group, knows that merely speaking of an organization’s core values is not even worth talking or writing about it unless you put it into practice. Even before he was named to head the global energy service company in November 2012 the native Scotsman has always made sure that any who works for him knows that THE core value in the energy industry starts with one word: safety. After all, if you’re a real people person, what is more important than ensuring that your employees work in the safest environment possible?

Prepare Now for Uncertain LNG Future

Natural gas trade in the Asia is growing 5.6% per year, and while the region is currently dominated by LNG, pipeline natural gas is set to grow at a CAGR of 23% between 2012 and 2020. Moreover, a new wave of LNG is expected from Australia and the United States, depending on how factors such as Asian demand, oil prices, and North American and Australia exports play out.

Transco Seeks Regulatory Approval for Dalton Expansion Project

Williams announced that Transco has filed an application with FERC for its Dalton Expansion project, which would support providing Marcellus gas to the Southeast for electricity generation and local natural gas distribution.

Role of Quality Management System in Project Completion

Quality is critical and the most important factor for completion of a project on time and within the allocated budget. If proper quality checks are not in place, defective materials or work may cause damage to equipment and facilities, and potentially resulting in health and safety hazards. Successful projects are those that meet business requirements and are delivered on schedule. Many factors contribute to a project’s success such as project planning, resource allocation, risk management and governance criteria, but effective quality management is critical for any project success.

Containment System for Deepwater Gulf Wells

Marine Well Containment Company (MWCC) recently delivered its Expanded Containment System (ECS), designed for well-containment capabilities and response readiness for operators in the deepwater U.S. Gulf of Mexico. The enhanced system builds on the equipment and technology put into place with MWCC’s Interim Containment System, made available in February 2011.

PHMSA Wants to Extend New Integrity Verification Program to Hazardous Liquid Pipelines

Hazardous liquid pipelines are unhappy with how the Pipeline and Hazardous Materials Safety Administration (PHMSA) wants to implement a provision of the 2011 pipeline safety law requiring companies to go back and test old steel pipelines for integrity.

Big Bully Busicks Mantra: Know Safety, No Accidents

Nick “Big Bully” Busick knows something about safety. In fact, he knows a lot about safety. You don’t step into the ring against the likes of the legendary Abdullah the Butcher without knowing how to keep yourself safe or you won’t survive 10 seconds against someone like the 400-pound madman from Sudan, who has torn apart more than one opponent’s face with his teeth, a pencil or whatever his favorite foreign object of the moment happens to be.

Growing PRCI Membership Tackles Inline Inspection, Regulatory Concerns

Pipeline Research Council International (PRCI), which has led the drive for more reliable pipeline technologies since 1952, recently selected new research projects to fund for the coming year. In an energy environment increasingly focused on safety and driven by regulatory concerns, its members chose to concentrate on improving inline inspection (ILI), preventing third-party intrusions along rights-of-way and compiling data that could enable changes from the EPA over compressor pump regulations.

Designing, Building Pipeline Infrastructure for CO2 Transport

With energy security and climate change at the top of the global agenda, carbon capture utilization and storage (CCUS) is gaining momentum. CCUS technology offers a solution supporting production of incremental hydrocarbon reserves from existing fields while storing CO2 away from the atmosphere.

TransCanada Delays Energy East, Reviews Terminal Siting

TransCanada postponed the building of its Energy East pipeline project and decided against building a marine and associated tank terminal in Cacouna, Québec. The company said alternative terminal options are under review, and that Québec and New Brunswick refineries would continue to be connected directly to Energy East.

Crude Oil Export Ban: Dated Policy with Real-Life Implications

If you are lucky enough to have grown up in Texas, you are all too familiar with how popular culture, particularly Hollywood, has glamorized the life of a wildcatter or roughneck. The movie Giant depicts James Dean on a windswept Texas countryside, sopping head to toe in newly discovered oil. While maybe a compelling drama, as a Texas Railroad Commissioner, I can tell you this is far from reality.

Texas Permiting Rules Post-Denbury Green

The Texas Railroad Commission adopted new rules in December concerning pipeline permit applications involving 16 Texas Administrative Code §3.70. It has been three years since the state Supreme Court’s opinion in Denbury Green, which took a dim view of the commission’s “check the box” rules regarding Form T-4 pipeline permit application which automatically created common carrier status to the pipeline operator.