Salvation for the Mountain Valley Pipeline?

MVP route map. Click for larger view. Source: MVP

by Steve Haner

And now, from our “I’ll believe it when I see it” department, comes the expectation that passage of President Joe Biden’s new corporate tax hike and green energy incentives package will be followed by a smooth path to completion for the Mountain Valley Pipeline (MVP) for natural gas.

The topic is everywhere today because Senator Joe Manchin, D-W.Va., included it as a deal point on a summary of what he sees as agreed outcomes from his decision to support the package. But the massive bill does not (and could not) include blanket approval of the pipeline among its provisions.

Instead there is reportedly a side agreement, and future legislation and administrative actions are expected to smooth federal permitting processes for energy projects, including the fossil fuel projects hated by the climate- catastrophe priesthood. A key element would remove the Fourth Circuit Court of Appeals from hearing the multitude of pipeline lawsuits and move them to the District of Columbia Court of Appeals.

The 303-mile pipeline stretching from gas fields in West Virginia to Chatham, Virginia, where it ties into an existing natural gas trunk line, is largely complete but is still fighting for permits to cross various wetlands and federal properties. Already about four years behind schedule, the developers are asking for another four years to get the job done.

The Wall Street Journal editorial page is skeptical that any such deal will hold once Manchin has actually voted to pass the tax hike and tax credit package, which as a budget reconciliation bill is exempt from the filibuster rules. The editors wrote:

What’s needed is a wholesale reform of environmental laws that fossil-fuel opponents have weaponized. Perhaps they should be forced to pay the costs of their obstruction if project developers prevail, as two pipelines did at the Supreme Court in recent years only to be scrapped by investors amid more lawsuits. The incentives have to change.

Will Democrats agree to legislation that stops their allies’ legal barrage against fossil fuels? Unless they do, Mr. Manchin’s reforms will do as much to save fossil fuels as the League of Nations did to stop World War II.

A second bill dealing with energy regulation would be subject to filibuster, thus needing at least ten Democratic votes along with the 50 Republican votes to pass the Senate. Then there is the House, where Democrats hold a stronger majority and may not dare to inflame the environmentalist voters before the November mid-terms.

As a report in today’s Virginia Mercury makes clear, those who believe natural gas is satanic are struggling to balance their hatred for the MVP project with their lust for the huge tax incentives baked into the bill for future renewable energy projects. But some have taken a strong stance:

“We firmly oppose any approach by Congress that sacrifices frontline communities as part of a political bargain,” said Jessica Sims, Virginia field coordinator for environmental and economic development nonprofit Appalachian Voices, in a statement. The group’s North Carolina field coordinator, Ridge Graham, called any legislation requiring completion of Mountain Valley “unacceptable.”

Mercury also reports that Virginia Democratic Senator Tim Kaine is open to new legislation on federal permitting, but it includes no information on how he would feel about the deal Manchin is seeking to immediately smooth the MVP’s current path. Even in this current world-wide energy crisis, Kaine is still questioning whether there was or is any need for the pipeline.

Dwayne Yancey at Cardinal News, its region at the heart of the controversy, seems to accept that the deal is done, that Manchin has succeeded in getting the “Biden administration and top congressional Democrats to back the pipeline.” Yancey is into the political side of the story, the trade-offs, but doesn’t see much benefit to Virginia if the MVP is completed.

His column is clearly an effort to sell the deal to MVP opponents. He starts with an early premise that President Biden is not really an opponent of the “fracking” drilling techniques to release massively more natural gas from the ground and seems to blame Biden’s wishy-washy stance as a reason he almost lost. He sees his region as being sacrificed. He writes:

It’s easier to make tough deals involving somebody else’s sacrifice. Would Schumer have been so keen for this deal if the Mountain Valley Pipeline ran through New York? Would Pelosi have gone along if it went through San Francisco? Probably not, right? It’s a lot easier for those at the national level to be more dispassionate about the deal than those who are closer to the actual pipeline. The Washington Post quoted some on the left who seemed OK with the Mountain Valley-Pipeline-for-Manchin’s vote deal. “We must pass the Inflation Reduction Act if we want to get on track to cutting carbon pollution in half by a decade,” said one California-based energy expert. “Without this legislation we don’t have a pathway to get there; with it, we have a fighting chance….”

There is no fighting chance. Carbon emissions will not, repeat not, be cut in half in our lifetimes, let alone a decade. This coming winter will demonstrate to all that reliance on wind and solar will doom a modern economy to failure unless Putin the Merciless relents and turns on the natural gas taps for Europe. More wind and solar will indeed be built in the U.S. if this bill passes, more electric vehicles sold, but despite the sugar high of the taxpayer-financed subsidies, there will still be days when the sun doesn’t shine, the wind doesn’t blow, and those of us with gas furnaces, propane grills and internal combustion vehicles sigh with relief.

As to getting the Biden Administration or Virginia’s key Democrats to back the Mountain Valley Pipeline, I’ll believe that when I see it. Manchin better get that vote on the board first.


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Comments

35 responses to “Salvation for the Mountain Valley Pipeline?”

  1. James Kiser Avatar
    James Kiser

    Manchin got rolled and is too stupid to realize it. The tax increases on the middle class will go through and the pipeline will not be built. Everything Schumer says is a lie.

    1. First I have heard of tax increases on the middle class. What are they?

      1. James Kiser Avatar
        James Kiser

        read the bill

        1. What section? It is a long bill.

          1. James Kiser Avatar
            James Kiser

            taxes on corporations equal taxes on the middle class.

    2. I agree that everything Chuck Schumer says is a lie. I consider him a completely shameless and reprehensible person.

  2. f/k/a_tmtfairfax Avatar
    f/k/a_tmtfairfax

    Messing with the jurisdiction of federal courts is not a good idea. It’s a slippery slope that will bite everyone’s @&& sooner or later.

  3. Nancy Naive Avatar
    Nancy Naive

    Over budget, and behind schedule, controversial, and…

    1. Stephen Haner Avatar
      Stephen Haner

      Oh, you weren’t discussing an aircraft carrier…sorry. Look, I know nothing about the management of that project, but the delays have largely been imposed by the incredibly aggressive lawfare campaign. Not that it wasn’t be to expected. Remember, when Sleepy Joe was our beloved VP, his boss was all in on natural gas as the replacement for coal. Silly of the investors to take Obama (and McAuliffe) at his word….

      1. Nancy Naive Avatar
        Nancy Naive

        Life is full of bargaining chips. You could well be one, too. If you can’t figure out what’s being bought and sold, it’s you.

        On MVP, I see it when I believe it. It’s what, $6B and rising with estimates of current completion ranging from 50 to 95%?

  4. Can Congress move an active case from one District to another? Have they ever? Surely it would set the case back by years.

  5. I doubt one can streamline NEPA at the litigation level. The long delays are because difficult scientific questions must be answered. What is the nature of the environment? What are the adverse impacts? How can they be minimized or mitigated?

    Agencies can try to duck these nasty issues but if someone presses them in Court it is going to take a long time to answer and resolve them.

  6. LarrytheG Avatar
    LarrytheG

    I guess it depends on how you look at it. More than a few “Dems” and “liberals” (you know, those “fossil fuel haters), are apparently going to agree to a good old fashioned compromise – political backroom style.

    The MVP folks also agreed to go under some streams rather than through them…

    And we’ve heard the ” environmental rules will DESTROY our economy” stuff for as long as I can remember – for coal plants, wastewater treatment plants, automobile lead fuel and mileage standards, DDT, Kepone, even aerosol cans and heat pump refrigerant – you name it. That argument has been used over and over and over and over… by the folks on the right who traditionally have opposed most environmental protections for decades.

  7. Some think there is stuff to like. This says the renewables subsidies are cut 80% which could really slow things down for them.
    https://wattsupwiththat.com/2022/07/29/the-bright-side-of-the-manchin-schumer-climate-deal/

  8. LarrytheG Avatar
    LarrytheG

    Here’s an interesting read from an industry perspective:

    https://uploads.disquscdn.com/images/93cd42c6eaba3072be29f6ac479d6c2f7fcd491a264bf775b56c555849df8c08.jpg

    https://www.eenews.net/articles/how-manchin-schumer-would-change-energy-from-oil-to-solar/

    “The deal is packed with incentives to boost low-carbon technologies, including delivering tax code reforms sought for years by renewable industries, chief among them a 10-year extension of wind and solar’s tax credits.

    It would also offer new tax credits for domestic manufacturing of solar panels, wind turbine parts and other key equipment for growth of renewables. Energy storage projects sited separately from renewable generation would also take advantage of a new investment tax credit.

    For federal land programs, the bill is a mixed bag of reforms and mandates: Answering the call of offshore wind proponents, the measure would undo a Trump-era moratorium on offshore wind leasing that bars new auctions in the southern Atlantic Ocean. Left in place, the moratorium would likely stymie the industry’s growth, according to observers.”

  9. Maybe Manchin is just the man to counter the Putin-pushed anti-MVP enviornistas out of the way so many along the route, at the terminus, and over seas can benefit from clean, affordable natural gas….

  10. LarrytheG Avatar
    LarrytheG

    You KNOW something is going on when in the same bill, the fossil fuel folks hate the solar/wind parts and the green weenies hate the fossil fuel parts.

    worth reading:

    https://uploads.disquscdn.com/images/61256ce743070c98d8ad7a38e26520e7c58e32b8d139d5b5fe852fe0ecc912bb.jpg

    https://www.eenews.net/articles/how-manchin-schumer-would-change-energy-from-oil-to-solar/

  11. LarrytheG Avatar
    LarrytheG

    The MVP was already about 90% completed and if you read the following article, you’ll see that there were already discussions underway between Machin and Biden:

    https://uploads.disquscdn.com/images/a149d14011fe7fb63ada2fe29d9772419259312591e4c3b37f52f2803f6cb801.jpg

    https://www.eenews.net/articles/ferc-approves-change-to-mountain-valley-pipeline-plan/

    and this: ” Cox, the Mountain Valley spokesperson, said last week that the project “was designed to transport 2 Bcf/day of domestic natural gas into regional and national supply markets.” She said its capacity “remains fully subscribed under firm contracts.”

    Then you’ve got this:

    https://uploads.disquscdn.com/images/6dc633864acc5d5b299b0cf270318f486376665685a77a9d1754e04a39b1d11a.jpg

    ” “It’s going to help all of us get through the winters and help us basically with LNG exports,” Manchin said.

    Henry Hub natural gas futures over the 2022-23 winter heating season settled at a price of $7.49/mmBtu on 1 August. That is substantially more than the $5.36/mmBtu spot prices last winter, driven in part by increased gas demand from US LNG export facilities that are running near maximum capacity. Pipeline supporters say finishing the project would boost supply and put downward pressure on prices.

    Even if Manchin’s permitting bill does not revise the targeted in-service date for the Mountain Valley Pipeline, company executives believe its enactment could support its proposals to expand the project and develop the 75-mile extension of the pipeline into North Carolina, called Southgate.”

    Besides export, the Southgate project which is just west of Durham, NC looks to be a major “something”… not even sure if the pipeline to it exists yet:

    https://www.mvpsouthgate.com/wp-content/uploads/2019/10/MVP-Southgate-Proposed-Route_Bing_Roads_October-2019.jpg

    https://www.utilitydive.com/news/appeals-court-ferc-southgate-gas-pipeline-equitrans/626339/

  12. energyNOW_Fan Avatar
    energyNOW_Fan

    Thank you Steve , you saved me writing a blog article about this. My article was going to stray off into the electric vehicle proposals.

    But the new rule if passed gives some handouts to the fossil fuel industry. So I would say MVP looks to be revived.

    On the one hand, particularly given the situation with EU dependence on Russian energy, there is starting to be greater recognition that US natural gas plays an continuing important role in the domestic and global energy transition. On the other hand, US liberals still love to hate U.S. fossil fuels, so nothing is certain anymore except more taxes. Death however can be avoided if we stop all use of fossil fuels in America, they would contend.

    As see it, overall, the US Auto industry probably feels they cannot survive anymore, due to high numbers of employees and retirement obligations etc. So the US Auto industry sees a chance to downsize and convert to be more like more nimble electronics companies. They need Congress to support that transition by giving Americans incentives and mandates to purchase U.S.- made electric cars. It is an existential issue for the US Auto industry, and Manchin and Dems are all inclined to give FORD and GM what they want (which is a hand-out). But Manchin is carving out continued extraction of fossil fuels for power, export and other needs.

    If you think about it, re: Autos, we are not threatened by Japan and Europe where we import cars from. So the need to prop up the US Autos is not as immediately clear to me as the possible need to prop up US chip manufacturing, mostly by China/Taiwan now.

  13. Eric the half a troll Avatar
    Eric the half a troll

    The choke point is at the ports not the pipelines. This pipeline will do nothing to help with NG supply in Europe and we already have plenty for our own use.

    1. LarrytheG Avatar
      LarrytheG

      Yes. And American consumers are lucky it’s constrained. NG fetches 4-5 times as much in Europe so NG companies are pushing as much as they can for export and the export price affects the domestic price. But the pipeline advocates think there is domestic manufacturing and heating demand.

      1. Stephen Haner Avatar
        Stephen Haner

        The irony of the stupid bill is that if you want the manufacturing of solar and wind components in the U.S., 1) why in hell would you remove/reduce the tax deductions available for investments in plant and equipment and 2) why in hell won’t you recognize that gas is essential component in those processes? In China, coal is used to make the silicon solar panels — with the green idiots accept that in an American solar supply chain?

        1. But as all environistas know China/India pollution doesn’t affect the USofA

          1. LarrytheG Avatar
            LarrytheG

            ya know… if Walmart condemned someone’s house to build a Walmart – all hell would break loose. but call it a pipeline and it’s just fine and dandy. Just need govt to okay it.

            The same folks who bleat about property rights in other issues just run away when it comes to pipelines… or solar farms… ..

      2. Stephen Haner Avatar
        Stephen Haner

        The irony of the stupid bill is that if you want the manufacturing of solar and wind components in the U.S., 1) why in hell would you remove/reduce the tax deductions available for investments in plant and equipment and 2) why in hell won’t you recognize that gas is essential component in those processes? In China, coal is used to make the silicon solar panels — with the green idiots accept that in an American solar supply chain?

      3. Eric the half a troll Avatar
        Eric the half a troll

        Based on this chart, high prices in Europe (and elsewhere) are not impacting prices here. That is because the choke point is at the ports (and will be for years) not at the production fields or pipelines. We have plenty of gas.

        https://uploads.disquscdn.com/images/ab2fabcb7f79e85c48d3afd722a6501aab38ef6c44c29993f0a30ac1f738fad3.jpg

        1. energyNOW_Fan Avatar
          energyNOW_Fan

          Well, keep in mind (1) short term, there was an upset with down time at a major new US LNG export plant, so that has given us temporary reprieve, but (2) long term, US is ramping up LNG export capability with new plants coming on line (mostly Gulf Coast). So it would appear to me USA is increasingly entering the world market with our nat gas.

    2. Stephen Haner Avatar
      Stephen Haner

      So you claim. Do you think we have enough to shut down all the coal and replace that with gas, which would result in enormous reductions in CO2 while preserving baseload? That was where the more reasonable Obama Administration was heading.

      1. LarrytheG Avatar
        LarrytheG

        Over 200 coal plants but more likely to be replace with wind/solar and NG backup.

      2. Eric the half a troll Avatar
        Eric the half a troll

        Don’t have to. Renewables just need to increase to replace coal. NG can remain constant. See below…
        https://uploads.disquscdn.com/images/2cd054f581f6e0f1253c999df8e8ae07bfa59b221556498fe6d3eb54e6632f1c.jpg

  14. energyNOW_Fan Avatar
    energyNOW_Fan

    Overall the permit process for pipelines seems crazy. The current process involves ( at least for utilities) moving ahead with massive infrastructure without completed permits. Then after $xx Billions is spent and the pipe is 90% laid, Democrat lawyer circuit judges appointed by Blue states stop the work, not on its merits, but because they have intense political hatred for fossil fuels, and take the opportunity to throw a monkey wrench into the project. The whole process is nuts.

  15. Nancy Naive Avatar
    Nancy Naive

    Bet a dollar, still not in service by September 2024.

  16. energyNOW_Fan Avatar
    energyNOW_Fan

    Overall the current permit process for pipelines seems crazy. The current process involves ( at least for utilities) moving ahead with massive infrastructure without completed permits. Then after $xx Billions is spent and the pipe is 90% laid, Democrat lawyer circuit judges appointed by Blue states stop the work, not on its merits, but because they have intense political hatred for fossil fuels, and take the opportunity to throw a monkey wrench into the project. The whole process is nuts to me, on the face of it. Maybe it’s only monopoly utilities who do it that way since they are using our money, so who cares?

    1. LarrytheG Avatar
      LarrytheG

      It boils down to what the justification is that allows one person to take the property of another.

      Certificate of public convenience and necessity

      that’s what allows one to take the property of another.

      IF what is being proposed is an at-will private, for-profit venture, it’s not the same as something that is required to benefit everyone AND the profit of which is regulated.

      It’s really not a complicated thing. What justifies forcing people to sell their land?

    2. And Russian-supported eco-wakos can file a lawsuit with no penalty if they lose… just to slow down/increase cost of the construction. One thing I like about European law is that the loser of a lawsuit pays all expenses….hence fewer lawsuits.

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