Maryland

Tue, 2014-08-26 03:00Steve Horn
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Judge Nixes Cove Point LNG Zoning Permit as Dominion Says Will Soon Receive Federal Permit

Co-Written with Caroline Selle

An August 6 court decision handed down by Calvert County Circuit Court Judge James Salmon could put Dominion Resources’ timeline for its proposed Cove Point liquefied natural gas (LNG) export facility in jeopardy.

Salmon ruled that an ordinance exempting the Lusby, Md.-based LNG project from local zoning laws — Ordinance 46-13 — violated both a section of a state Land Use law, as well as Maryland's constitution. The facility will be fueled by gas obtained via hydraulic fracturing (“fracking”).

In the ruling, Judge Salmon described the zoning exemption as “a very unusual situation.” In 2013, the Calvert County Board of County Commissioners and the Calvert County Planning Commission carved out both LNG export and import facilities from zoning laws.

“To my knowledge no other municipality or county in Maryland has attempted to do what the Calvert County Board of County Commissioners has attempted to do, i.e. completely exempt two uses from being covered by zoning regulations while requiring everyone else in the County to abide by those regulations,” wrote Salmon.

Environmental groups fighting against the Cove Point LNG export terminal hailed Salmon's judgment as a major grassroots victory.

“At a minimum, this ruling will likely cause real delay in the ability of Dominion to begin major construction of this controversial $3.8 billion fossil fuel project,” Mike Tidwell, executive director of Chesapeake Climate Action Network (CCAN), said in a press release. “The ruling should certainly give pause to the Wall Street investors that Dominion is seeking to recruit to finance this expensive, risky project.”

The plaintiffs in the lawsuit, AMP Creeks Council (shorthand for Accokeek Mattawoman Piscataway Creeks Council), came to a similar conclusion.

“This is a remarkable victory for the people of Lusby, Maryland, and folks fighting fracking and LNG exports throughout the Mid-Atlantic region,” Kelly Canavan, President of AMP Creeks Council, said in a press release.

Yet, Salmon concluded the ruling out by stating his decision “has no direct bearing on whether the facility will be built or not.” And even AMP Creeks acknowledged in its press release that its legal team “is still sorting out the implications of this ruling.”

Further, Canavan told DeSmogBlog in an interview that she agrees with Salmon, at least in terms of the legal argument he put forward about his role in the final destiny of the Cove Point LNG export facility. 

“Even if he wanted to, he does not have the power to determine whether or not the facility will be built,” she said. “It doesn’t mean there won’t be a ripple effect.”

So, what gives? Is the decision a game-changer or something less? Dominion certainly thinks the latter, based on a review of its quarter two earnings call transcript.

Wed, 2014-08-20 07:00Justin Mikulka and Steve Horn
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Big Rail Cites Bin Laden, Al Qaeda to Fend Off Oil-by-Rail Route Transparency

While many states around the U.S. have released information to the public about the frequency and routes of trains carrying oil obtained from hydraulic fracturing (“fracking”) in North Dakota’s Bakken Shale basin, holdouts still remain. 

Why the delay? Homeland security concerns, claim some companies. 

In an ongoing Maryland court case over the issue of transparency for in-state oil-by-rail routes, a July 23 affidavit from Carl E. Carbaugh — director of infrastructure security for Norfolk Southern — goes into extensive detail about the supposed risk presented by terrorism attacks on “Bomb Trains.” 

In so doing, Carbaugh mentions Al-Qaeda. 

The most recent edition of Inspire magazine, March 2014, the online, English-language propaganda publication of [Al-Qaeda in the Arabian Peninsula], presents a full-page collage depicting varied images…in order to construct an explosive device,” reads Carbaugh’s affidavit

Among these images are a derailed passenger train and a partly covered note paper listing cities in the [U.S.] as well as the terms ‘Dakota’ and ‘Train crude oil.’” 

Carbaugh also cited Osama bin Laden, the late Al-Qaeda international ring-leader, in his affidavit.

Among the materials seized in the May 1, 2011, raid on Osama bin Laden’s compound in Abbottabad, Pakistan, were notes indicating interest in ‘tipping’ or ‘toppling’ trains — that is causing their derailment,” Carbaugh wrote.

Osama Bin Laden Compound Diagram; Image Credit: Wikimedia Commons

Fri, 2014-02-21 11:34Guest
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We Need a Surgeon General’s Report for Fracked Gas Exports at Cove Point

This is a guest post by Katie Huffling, Mike Tidwell, and Joelle Novey

Fifty years ago the US Surgeon General’s report on cigarettes and lung cancer changed America forever. Before the report, Americans generally thought smoking was okay – maybe even good for us given ads like, “More doctors smoke Camels than any other cigarette!” But then the hard evidence – the undeniable facts – came to the surface and we changed.

That’s the good news. The bad news for Maryland is that we have a new “Camel cigarette” problem. For the past several months, a powerful corporation called Dominion Resources has been telling Marylanders that we can light something else on fire – something called “fracked gas” – and that it will be good for public health and the environment.

Dominion wants to build a massive industrial plant at a place called Cove Point in southern Maryland to systematically collect, process, liquefy, and export to faraway Asia a huge quantity of gas taken from hydraulic fracturing drilling sites all across our region. To understand the full-blown public health emergency that could result from this, you need to remember this number: 19. That’s how many Maryland counties – 19 out of a total of 23 – that have recently been mapped and found to have gas basins below their surface. Every one of those 19 counties could get fracked – with all the attendant problems ranging from flammable tap water to deforestation – thanks directly or indirectly to Dominion’s Cove Point plan.

We are Maryland leaders working with health organizations, religious communities, and environment groups, and we are simply appalled by Dominion’s Cove Point gas “liquefaction” and export proposal now before the Maryland Public Service Commission. Indeed on February 20th, outside the PSC’s downtown Baltimore office, we joined demonstrators from across the state in one of the largest environmental protests in the city’s history. Our message to the PSC: “Don’t let Dominion addict Maryland to harmful energy. Stop the Cove Point gas export plant.”

Thu, 2014-02-13 16:27Caroline Selle
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Maryland At High Risk of Water Contamination From Fracking, Independent Assessment Finds

An independent assessment commissioned by the Chesapeake Climate Action Network and Citizen Shale, two Maryland environmental groups, warns hydraulic fracturing (fracking) in the state would pose a “high risk” to Maryland air and water.

The assessment, titled, “Shale Gas Risk Assessment for Maryland,” was conducted by Ricardo-AEA, the same United Kingdom-based independent environmental consulting firm that led the European Commission’s hydraulic fracturing risk assessment and regulatory review.

To develop an evaluation of the potential impacts of fracking in Maryland, the firm reviewed evidence of environmental and health issues associated with hydraulic fracturing, the gas industry’s standard operating practices and Maryland’s current regulatory framework. In the process, Ricardo-AEA conducted a literature review of more than 200 documents and evaluated Maryland-specific geological data. The study did not address climate or carbon footprint issues.

The assessment found a cumulative risk grade of “high” or “very high” in nine of ten qualities if fracking were to occur in Maryland. The qualities included a high risk of surface water contamination, ground water contamination, noise impacts, visual impacts, increased traffic and threats to biodiversity.

Additionally, the study notes fracking is estimated to use 3.88 million gallons of water per well, threatening Maryland water supplies from two sides. Fracking would also produce dangerous air emissions such as particulate matter, nitrogen oxides, carbon monoxide, volatile organic compounds and sulfur dioxide.

The study also predicts a “very high risk” of undeveloped land being taken over for development, with up to 10 percent more land needed for full development of a gas reservoir than is currently described as developed in Maryland's Allegheny and Garrett counties.

Though two western Maryland counties, Allegheny and Garrett, lie above the Marcellus Shale, fracking is currently prohibited in the state.

Wed, 2014-02-12 05:00Steve Horn
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Documents Reveal Calvert County Signed Non-Disclosure Agreement with Company Proposing Cove Point LNG Terminal

Co-authored by Steve Horn and Caroline Selle

DeSmogBlog has obtained documents revealing that the government of Calvert County, MD, signed a non-disclosure agreement on August 21, 2012, with Dominion Resources — the company proposing the Cove Point Liquefied Natural Gas (LNG) export terminal in Lusby, MD.  The documents have raised concerns about transparency between the local government and its citizens.

The proposal would send gas obtained via hydraulic fracturing (“fracking”) from the Marcellus Shale basin to the global market. The export terminal is opposed by the Chesapeake Climate Action Network, Maryland Sierra Club and a number of other local environment and community groups.

The Accokeek Mattawoman Piscataway Creeks Council (AMP Council), an environmental group based in Accokeek, MD, obtained the documents under Maryland's Public Information Act and provided them to DeSmogBlog.

Cornell University’s Law School explains a non-disclosure agreement is a “legally binding contract in which a person or business promises to treat specific information as a trade secret and not disclose it to others without proper authorization.”

Upon learning about the agreement, Fred Tutman, CEO of Patuxent Riverkeeper — a group opposed to the LNG project — told DeSmogBlog he believes Calvert County officials are working “in partnership with Dominion to the detriment of citizen transparency.”

We’re unhappy that it does seem to protect Dominion's interest rather than the public interest,” Tutman said. “The secrecy surrounding this deal has made it virtually impossible for anyone exterior to those deals, like citizens, to evaluate whether these are good transactions or bad transactions on their behalf.”

Tue, 2014-02-04 05:00Caroline Selle
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Fisherman Fighting Dominion Cove Point LNG Export Terminal Worried About Explosions, Long-Term Impacts

Pete Ide probably isn’t the first person you’d expect to oppose the Dominion Cove Point liquefied natural gas (LNG) terminal.    

First of all, I have to be frank,” he says. “I depend on fossil fuels to make a living.” A charter boat captain on the Chesapeake Bay, Ide has fished his entire life. As such, he’s seen the decline in water quality and marine life in the Chesapeake firsthand.

The water quality has been so bad these past two years, I had to move my boat because there weren’t any fish here,” he says. The dead zones get larger every year as algae blooms exacerbated by runoff from farm fertilizer, industrial livestock and poultry production eat up the oxygen marine life needs to survive.

Though the Dominion Cove Point LNG terminal won’t be dumping fertilizer, Ide says it will just be one more step in the degradation. “It’s not going to put me out of business,” he says, “but it's another brick in the wall. It's 49 more acres of heavy industrial build-out on the shores of the Chesapeake Bay.”

Through seafood production and tourism, the Chesapeake Bay supports more than a trillion dollars of economic activity. The Calvert County shore in Maryland, where Dominion Energy plans to build the liquefaction facility, is home to wetlands and rare species of plants and animals, including migratory birds. Construction would require clearing forests and bringing in heavy construction materials on the Patuxent River.

Dominion Energy’s plans require constructing an on-site 130 megawatt power plant, storage units and a liquefaction facility. Upstream, pipelines, pier adjustments and compressor stations will need to be constructed or adapted for shipping natural gas.

When constructed, the facility will be the fourth largest greenhouse gas emitter in Maryland, and it won’t just be pumping out greenhouse gases. Nitrogen oxides, sulfur dioxide and particulates are all byproducts of natural gas usage and are air pollutants regulated by the Environmental Protection Agency under the Clean Air Act. The World Health Organization recognized the negative health effects of air pollution, such as cancer, earlier this year.

Tue, 2014-01-28 11:06Caroline Selle
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Maryland Residents Fight Cove Point LNG Export Plans That Threaten To Turn Area Into “Industrial Site”

When Jean Marie Neal and her husband moved to Calvert County, Maryland, she knew natural gas was imported nearby at the Dominion Cove LNG plant. 

“We did not object,” Neal says, “because we knew at that point the United States needed to import gas.” But now, with Dominion's proposal to build a liquefied natural gas export terminal (LNG) on land not far from her neighborhood, Neal’s feelings on natural gas infrastructure have changed dramatically. “It’s not even for us,” she says.

Dominion Energy plans to obtain gas from Marcellus Shale frack fields in Pennsylvania and transport it via pipeline through the Old Line state. The proposed $3.8 billion Dominion Cove Point liquefied natural gas (LNG) export terminal, located in Lusby, Maryland, would liquefy more than 750 million cubic feet of natural gas per day for shipments to India and Japan.

Now Neal, formerly a chief of staff in both the House of Representatives and the Senate, represents the Cove of Calvert homeowners’ association. She says the residents of Cove Point are speaking up because they’re having trouble finding answers.

Neal echoes the sentiments of many Marylanders, who say their opposition to the Cove Point export plan is more than a NIMBY concern. It’s part of a larger debate about whose interests natural gas exports are really in — corporate interest or the public interest?

Wed, 2013-09-11 12:45Steve Horn
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Breaking: First Marcellus Fracked Gas Export Permit Approved by Energy Dept

The U.S. Department of Energy (DOE) has granted the first ever LNG export permit license to Dominion Resources, Inc. to export gas obtained from the controversial hydraulic fracturing (“fracking”) process in the Marcellus Shale basin.  

It's the fourth ever export terminal approved by the DOE, with the three others along the Gulf Coast: Cheniere's Sabine Pass LNG, Freeport LNG (50-percent owned by ConocoPhillips) and Lake Charles Exports, LLC

Located in Lusby, Maryland, the Dominion Cove Point LNG terminal will be a key regional hub to take gas fracked from one of the most prolific shale basins in the world - the Marcellus - and ship it to global markets, with shale gas exports a key geopolitical bargaining chip with Russia, the biggest producer of conventional gas in the world.

Dominion owns not only Cove Point, but also the pipeline infrastructure set to feed the terminal.

“Dominion…owns both the existing Cove Point LNG Terminal and the 88-mile Cove Point pipeline,” explained industry publication LNG Global. “Dominion Cove Point…stated in their application that natural gas will be delivered to the Cove Point Pipeline from the interstate pipeline grid, thereby allowing gas to be sourced broadly.”

DOE handed Dominion a permit lasting a generation.  

Wed, 2012-05-02 10:04Steve Horn
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ALEC Wasn't First Industry Trojan Horse Behind Fracking Disclosure Bill - Enter Council of State Governments

19th Century German statesman Otto von Bismarck once said, “If you like laws and sausages, you should never watch either one being made.”

The American Legislative Exchange Council (ALEC), put on the map by the Center for Media and Democracy in its “ALEC Exposed” project, is the archetype of von Bismarck's truism. So too are the fracking chemical disclosure bills that have passed and are currently being pushed for in statehouses nationwide.

State-level fracking chemical disclosure bills have been called a key piece of reform in the push to hold the unconventional gas industry accountable for its actions. The reality, though, is murkier.

On April 21, The New York Times penned an investigation making that clear. The Times wrote:

Last December, ALEC adopted model legislation, based on a Texas law, addressing the public disclosure of chemicals in drilling fluids used to extract natural gas through hydraulic fracturing, or fracking. The ALEC legislation, which has since provided the basis for similar bills submitted in five states, has been promoted as a victory for consumers’ right to know about potential drinking water contaminants.

A close reading of the bill, however, reveals loopholes that would allow energy companies to withhold the names of certain fluid contents, for reasons including that they have been deemed trade secrets. Most telling, perhaps, the bill was sponsored within ALEC by ExxonMobil, one of the largest practitioners of fracking — something not explained when ALEC lawmakers introduced their bills back home.

The Texas law The Times refers to is HB 3328, passed in June 2011 in a 137-8 roll call vote, while its Senate companion bill passed on a 31-0 unanimous roll call vote. Since then, variations of the model bill have passed in two other key states in which fracking is occuring.

Like dominos falling in quick succession over the following months, ColoradoPennsylvania and, most recently, the Illinois Senate passed bills based on the ALEC model. Louisiana also has introduced a similar bill. 

Fri, 2011-11-18 05:15Steve Horn
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ExxonMobil and Shell Eyeing North American LNG Export Deals

Yesterday, LNG World News reported that ExxonMobil Vice President Andrew Swiger announced, at a conference hosted by Bank of America Merrill Lynch, that it was actively seeking LNG (liquefied natural gas) export terminals throughout North America, including, but not limited to, in British Columbia and on the Gulf Coast.

In terms of exports from North America, whether it is the Gulf Coast or whether it is Western Canada, it’s something we’re actively looking at,” said Swiger.

So, where are these prospective export terminals located, what are the key pipelines carrying the unconventional gas produced from shale basins, and what are the key shale basins in the mix? Hold tight for an explanation.

Golden Pass LNG Terminal and Golden Pass Pipeline

The LNG World News article explains that ExxonMobil “has a stake in the Golden Pass LNG Terminal in Texas,” but does not explain exactly what the “stake” is.

A bit of research shows that ExxonMobil is a 17.6% stakeholder in the Golden Pass LNG Terminal, according to a March 2011 article publshed by Platts. It is co-owned by ConocoPhillips and Qatar Petroleum, who own a 12.4% and 70% stake in Golden Pass LNG, respectively.

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