FERC Approves NY Methane Storage Project

Vineyards in the Seneca Lake (Wikipedia)

Brushing aside warnings of dangerous geological risk, federal regulators say construction can start immediately on a methane gas storage project next to Seneca Lake that has galvanized opposition from wine and tourism businesses across the Finger Lakes in upstate New York.

The Sept. 30 decision by the Federal Energy Regulatory Commission represents a major breakthrough for Houston-based Crestwood Midstream. The company has been waging a five-year campaign for permission to convert long-abandoned lakeside salt caverns into a regional storage hub for both methane gas and liquid petroleum gas, or LPG, from fracking operations in Pennsylvania. Continue reading FERC Approves NY Methane Storage Project

Fossil Fuels Get Huge Master Limited Partnership Tax Breaks – “Green” Energy Shut Out

Since 2008, investors have poured several hundred billion dollars into fossil fuel-related master limited partnerships that shield income from virtually all corporate taxation. The MLP tax loophole — a sort of reverse carbon tax — has heavily subsidized the nation’s ongoing oil and natural gas fracking boom.

Solar, wind and other renewable energy companies are not eligible for the MLP tax dodge. Although bipartisan support is building in Congress to extend the tax deductions to them, insiders say legislation to do so will most likely have to wait for and be a part of a comprehensive tax reform package, which has proven elusive.

Until then, existing incentives will serve as a drag on the U.S. economy’s transition from fossil fuels to renewable energy sources. As long as Congress fails to act, fossil fuels will continue to exploit their government-approved competitive advantage even as mounting evidence shows their use accelerates global warming and prompts calls to tax carbon. Continue reading Fossil Fuels Get Huge Master Limited Partnership Tax Breaks – “Green” Energy Shut Out

Landmark Decision for Local Control – Major Setback for Fracking Supporters

Anti-fracking protestors, a recent march in Albany, call for Gov. Andrew to ban tracking statewide. (Photo: 350.org)

ALBANY, N.Y. — Towns across New York State and as far away as Texas and Colorado may soon feel the aftershocks of a landmark decision June 30 by the highest court in New York that towns have the authority to ban drilling for natural gas.

The 5-2 ruling by the state Court of Appeals has emboldened opponents of high-volume hydraulic fracturing, for fracking, and they hope to make the most of it.

“Any town that has held off banning fracking for fear of getting sued by the frackers just got a neon green light to proceed with a ban,” said Chip Northrup, an energy investor turned anti-drilling activist from Cooperstown. “While they are at it, they should ban frack waste, since most New York towns are more liable to being dumped on than fracked.” Continue reading Landmark Decision for Local Control – Major Setback for Fracking Supporters

Geologist Says Feds Made “Incredible Error” Ignoring Huge N.Y. Salt Cavern Roof Collapse

The salt and storage wells of the Watkins Glen brine field lie 2,000 feet below the network of small roads just north of the US Salt plant on Seneca Lake in New York. The Village of Watkins Glen is just outside the picture to the south.

In the 1960s, a 400,000-ton block of rock fell from the roof of an old salt cavern in the Finger Lakes region of New York — a cavity that new owners now want to reopen and use to store highly pressurized natural gas.

The Midwestern energy company that seeks a federal permit for the storage project has denied knowing the roof failure ever happened. And the Federal Energy Regulatory Commission (FERC), which is poised to rule on the company’s permit application, has never publicly acknowledged the event.

But a Houston geologist hired by lawyers for opponents of the project characterized the omission by Arlington Storage Co. and FERC as “an incredible error” that heightens safety concerns about the project next to Seneca Lake, less than three miles from the Village of Watkins Glen, population 1,860.

“Clearly, Arlington’s application and FERC’s conclusions are compromised by this error,” H.C. Clark wrote in a Jan. 15 letter that is now part of FERC’s public record in the case. Continue reading Geologist Says Feds Made “Incredible Error” Ignoring Huge N.Y. Salt Cavern Roof Collapse