FERC: No reason to approve Rover

A few talking points for FERC scoping meetings.

This email is in response to comments made by the Michigan Chamber of Commerce, Rover, unions, and others at the FERC Rover scoping meeting in Chelsea (November 20). Comments such as:
· about 3,000 temporary jobs would be created in Michigan
· around $13.4 million in higher tax revenues for local governments
· Energy is the livelihood of Michigan's economy, and the Rover pipeline will inject new life into that economy. Michigan will need more gas.
http://www.heritage.com/articles/2014/11/21/chelsea_standard/news/doc546f7e75099d6298155091.txt?viewmode=fullstory

Future meetings will be held in Adrian (12/1), Flint (12/10) and Richmond (12/11). https://secure.sierraclub.org/site/SPageServer;jsessionid=7B623BE60E79ED0B9BF38304C28E8681.app201a?pagename=MINaturalGasPipelinesInterests&AddInterest=8275


Jobs and economic activity
3,000 temporary jobs is a token amount. (Michigan has over 4.4 million total jobs.) Plus, these temporary pipeline jobs would be created purely to support degrading our property and environment and enabling more fracking - one of the most polluting industries in the US.
More pipelines enable more fracking.

One Michigan study concludes at least 15,000 long term jobs would be created just by fixing Michigan roads. http://www.swmpc.org/downloads/michigans_roads_the_cost_of_doing_nothing_and_the_rewards_of_bold_action.pdf

A study by the Michigan Conservative Energy Forum concluded that by continuing the current Michigan energy efficiency program and increasing the State's renewable energy requirement to 20% by 2025 would add 100,000 jobs and $10 BILLION in economic activity to Michigan. http://www.micef.org/index.php/documents

Unlike stated at the meeting, energy is not a major industry in Michigan. It is much smaller in comparison to manufacturing, tourism, agriculture and many others.

Tax revenues and declining property values
Local tax receipts from Rover may be entirely offset by disfiguring and devaluing 12,147 acres of Michigan land and probably lowering tax revenues because of lower property values.

There are conflicting studies on lower property values and pipelines.
However it needs to be pointed out that landowners in Texas are WINNING millions in law suits because gas pipeline easements often cause significant damages to property beyond the easement area. http://www.prnewswire.com/news-releases/texas-landowners-win-21-million-judgment-against-pipeline-company-over-lower-property-value-251945191.html

Plus, possible problems with property insurance, mortgages, titles, resale and increased road damage, burden on local fire and police, etc.

Declining natural gas use in Michigan
Natural gas usage in Michigan has actually DECLINED over the past 40 years according to US Energy Information Administration. http://www.eia.gov/dnav/ng/ng_sum_lsum_dcu_SMI_a.htm

Even with additional coal plant retirements, higher energy efficiency and renewable energy requirements in Michigan will negate the need for more natural gas for electric generation, building and water heating.

President's commitment, methane, FERC and climate change
President Obama committed the US to cut greenhouse emissions. This includes considerable CO2 from burning natural gas and from methane emissions from leaks. Methane is 86 times more detrimental than carbon dioxide as a GHG during the two decades after it enters the atmosphere. In most cases, this makes natural gas worse for climate change than coal and oil.
As part of the US government, FERC must take serious steps to achieve the President's goals to reduce CO2 and methane emissions. This includes pipelines.

(More on Rover, GHG and FERC meetings in http://adrianoil.blogspot.com/ )

FERC, what is the GHG impact of the Rover pipeline including CO2 and methane leakage?

There is no need for Rover
Michigan already has considerable gas pipeline inflow and outflow capacity with considerable existing capacity to and from Ontario. There are at least 5 gas pipelines between Michigan and Ontario.
http://www.eia.gov/naturalgas/data.cfm#pipelines

DTE and CMS told a Michigan legislator that they did not request the Rover pipeline.

DTE is planning their own Nexus pipeline which will serve Michigan and Canada. Most of it is already built in Michigan.

Michigan has its own large natural gas reserves in the Antrim and Utica-Collingwood fields. http://www.greatlakesenergyforum.com/topics/michigan-shale

Michigan had more underground natural gas storage capacity than any other state in the nation with over 1 trillion cubic feet of capacity. This negates the need for extra pipelines to meet seasonal demands. http://www.eia.gov/state/print.cfm?sid=mi

Energy Transfer and FERC agreed in November 2013 that no additional natural gas pipeline capacity was needed in the Midwest
Energy Transfer stated there was excess pipeline capacity serving the Midwest region. https://elibrary.ferc.gov/idmws/doc_info.asp?document_id=14040896
FERC agreed to allow ET to abandon this gas pipeline in the Midwest stating, "Trunkline is not obligated to continue to operate capacity … for which there is no demonstration of market demand." CP12-491
https://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=13392374

Canada has plenty of natural gas and gas pipelines and does not need Rover.
· Canada has more natural gas reserves that the US including considerable reserves Ontario, Quebec and Nova Scotia.
· There are at least eight existing pipelines crossing between Canada and Eastern US states. Many of them are already sending Marcellus/Utica shale gas to Canada.
· And at least six new pipelines and pipeline expansions planned to supply US gas to Eastern Canada. http://www.fossil.energy.gov/programs/gasregulation/border.html
http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/impex_map.html
· Even with coal plant retirements in Ontario, hydro and nuclear account for roughly 90% of total Ontario and Quebec electric generation and wind is a growing percentage of the total.

Drillers want more pipelines because of their profit desire to produce gas far in excess of final customer needs
Drillers/shippers like Range and Antero Resources and American Energy-Utica have spent billions to secure too many oil and gas leases in Marcellus and Utica and are rushing production way beyond demand before many of these leases expire.

Summary
"Public convenience and necessity" should be determined by the natural gas needs of the final customers who will use the gas and not by the profit objectives of shippers and pipeline companies.

Real need, the environment, people's rights, health and quality of life should take precedence as well as the CO2 and methane reduction goals of our country.

FERC please don't be a party to the excessive gas drilling madness.

Just because they are proposed, they don't have to be approved.