Second Circuit follows lead of Seventh: Nuke subsidies upheld

On September 27, 2018, the Second Circuit Court of Appeals issued its decision in Coalition for Competitive Electricity v. Zibelman, 2nd Cir. No. 17-2654, 2018 U.S. App. LEXIS 27605 (Sep. 27, 2018). This decision, which follows the Seventh Circuit’s decision in Elec. Power Supply Assn. v. Anthony M. Star, summarized here, is the second decision in the span of two weeks to affirm a state’s subsidization of nuclear generation facilities. As in Star, the principal issue in Zibelman was whether the Federal Power Act, specifically 16 U.S.C. § 824(b)(1), which provides that the Federal Energy Regulation Commission (FERC) is to regulate the sale of electricity in interstate commerce, and the states are to regulate local distribution and the facilities used to generate power, preempts a state law that seeks to subsidize some of the state’s nuclear generation facilities in the form of zero emission credits (ZEC) credits. Following the Seventh Circuit’s lead, the Second Circuit held that the state program was not preempted by the Federal Power Act; however, the decision differed in two main respects. For more, read the full publication.

National

EnerVest names new president

Judson B. Walker has been named the new president of EnerVest Ltd, according to Globe Newswire. In this capacity, he will be responsible for managing the direction of EnerVest alongside CEO John B. Walker. For more, read the full story

National

Ohio and Oklahoma drilling expansions boost Gulfport production

Gulfport Energy Corp. saw a 28 percent production increase of natural gas equivalent in the second quarter, led by its recent drilling expansion into Ohio and Oklahoma, according to NewsOK. Ohio’s Utica Shale was especially successful, producing almost 97 billion cubic feet of natural gas equivalent. For more, read the full story

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FERC unlikely to act on pipeline review before Powelson exit

The Federal Energy Regulatory Commission (FERC) will not take any surprise action on its pipeline policy review at its Thursday open meeting, as comments are still coming in until July 26, Commissioner Cheryl LaFleur said Tuesday. FERC will instead focus on a slate of individual orders before Commissioner Robert Powelson steps down next month. For more, read the full story

National

Shale gas revolution expected to continue growing

After a decade of transformative progress, economic growth from the shale gas revolution is not projected to slow down anytime soon, according to Forbes. IHS Markit recently reported its projection for natural gas production to expand by another 60% within the next two decades. For more, read the full story.

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Former EPA official becomes acting agency leader

Following the resignation of EPA deputy administrator Scott Pruitt, Ohio native Andrew Wheeler will be filling the role for at least a year, according to the Columbus Dispatch. If President Trump decides to nominate Wheeler to the position permanently, a Senate vote would be required. For more, read the full story

National, Ohio

Massive power plant construction planned in Virginia

Construction of the gas-fired Chickahominy Power Station, so massive that it ties for the position of largest natural gas-fired plant ever built, will soon begin in Charles City County, according to the Marcellus Drilling News. Charles City County is located between the cities of Richmond and Jamestown, near the Chickahominy River. For more, read the full story.

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EV Energy Partners emerges from bankruptcy court as Harvest Oil & Gas

After spending two months in bankruptcy court and shedding $355 million in debt, the original EV Energy Partners (EVEP) became Harvest Oil & Gas, according to Marcellus Drilling News. EVEP was originally a master limited partnership (MLP), but Harvest Oil & Gas is now a corporation. For more, read the full story.

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EIA expects major increase in Northeast natural gas takeaway capacity this year

Assuming all projects come online by their scheduled in-service dates, the U.S. Energy Information Administration expects more than 23 billion cubic feet per day (Bcf/d) of natural gas pipeline takeaway capacity to be online in its Northeast region, which includes Ohio, Pennsylvania and West Virginia, by the end of 2018. The agency says that will be up from an estimated 16.7 Bcf/d at the end of 2017 and more than three times the takeaway capacity at the end of 2014. EIA notes that the growth of natural gas production in the Marcellus and Utica shale basins is “constrained by the lack of available takeaway pipeline capacity to move it to new markets,” and new projects will create an outlet for increased production. For more, read the full EIA report.

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FERC allows start of Atlantic Coast Pipeline construction in West Virginia

Marcellus Drilling News reports that the Federal Energy Regulatory Commission (FERC) has given permission to Dominion Energy to begin construction of the Atlantic Coast Pipeline in West Virginia. The news site says the $6.5 billion natural gas line will run from West Virginia through Virginia and into North Carolina. Click here to read more.

National, West Virginia
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