Posts

Early Construction (2016) of Shell Ethane Cracker in Monaca, Beaver County, Pennsylvania

House Bill 1100: What you need to know

Pennsylvania’s House Bill 1100, sponsored by state Rep. Mike Turzai, has passed through the House and Senate with broad bipartisan support. If approved, the bill would provide billions of dollars in subsidies to energy and fertilizer companies that use fracked natural gas as feedstock.

The Bill is part of “Energize PA,” a package of bills that encourage natural gas and petrochemical development by providing companies with streamlined permitting processes and subsidies. The Shell ethane cracker plant in Beaver County received $1.6 billion in state subsidies, the largest tax break in state history. HB1100 would provide similar tax credits to additional petrochemical and natural gas projects.

According to its Republican sponsors, HB1100 is “designed to make Pennsylvania attractive to outside businesses, create family-sustaining jobs and provide economic benefits to underserved regions, without creating any new fees or taxes.” Indeed, the cumulative wage impacts of the Appalachian basin shale gas build-out was around $21 billion from 2004 to 2016, according to a 2019 Carnegie Mellon University study.

March 25, 2020 Update

After weeks of sitting on the bill, the Pennsylvania General Assembly passed HB1100, and the Pennsylvania Senate submitted it to Governor Wolf on March 18. This came amidst the chaos of the COVID-19 outbreak. The Governor is still expected to veto the bill, after which point, the General Assembly is likely to attempt an override.

March 27, 2020 Update

Governor Wolf said in his press release:

“Rather than enacting this bill, which gives a significant tax credit for energy and fertilizer manufacturing projects, we need to work together in a bipartisan manner to promote job creation and to enact financial stimulus packages for the benefit of Pennsylvanians who are hurting as they struggle with the substantial economic fallout of COVID-19.” Read the full press release here.

Some lawmakers have said that they will attempt to override the veto.

 

Fiscal Responsibility

However, both Energize PA and HB1100 have been criticized for their overall economic inefficacy and environmental externalities. The aforementioned CMU study found that the cumulative air pollution damage cost about $23 billion and the cumulative greenhouse gas damage reached $34 billion, leading the authors to conclude that the negative environmental and health externalities outweigh the benefits of shale gas development.

Diana Polson, Senior Policy Analyst at Pennsylvania Budget and Policy Center, has also raised concerns about the economics of the petrochemical buildout in Pennsylvania. At a recent town hall meeting in Millvale, Pennsylvania, she made the point that tax incentives are rarely a deciding factor in a company’s decision on where to operate. This means that initiatives like “Energize PA” have little impact in terms of private investment decisions. Many factors outweigh the impact that tax credits have on a private company’s bottom line, such as proximity to a strong workforce, other existing industries, and access to supply chains.

Employment

What about job creation? The Pennsylvania Department of Revenue estimates that the HB1100 tax credit program would cost the Commonwealth $22 million per plant per year over the next 30 years. Diana Polson estimates that this would equate to about $8.8 million per permanent job over the course of the tax break.

This cost-to-job ratio is unacceptable to representatives like Sara Innamorato. “According to Shell, the cracker plant in Beaver will support 6,000 construction jobs at the peak of work, but will only lead to a possible 600 permanent jobs. Each of these jobs costs $2.75 million in subsidies — money that could have sustained many more families currently struggling to make ends meet in our communities,” the State Representative wrote. “Imagine how many workers we could employ with that level of investment in rebuilding our crumbling roads and bridges, replacing lead pipes, and repairing bus-swallowing sinkholes.”

Corporate tax revenue has fallen to 14% of Pennsylvania’s General Fund revenue, about half of what it was in the 1970’s. Without these corporate tax cuts, Pennsylvania would have about $4 billion more in corporate tax revenue per year than it does today. Critics like Innamorato believe that the state should respond to an already large public investment deficit by subsidizing investments such as education, human services, infrastructure, and environmental protection. HB1100 runs counter such public investments, particularly Democratic Governor Tom Wolf’s efforts to instate a severance tax on fracking operations that would subsidize infrastructure projects.

Environmental & Climate Impacts

Critics of HB1100 also raise environmental concerns. Much of the petrochemical buildout in the Appalachian basin would produce plastics, exacerbating the problem of single-use plastic pollution. There are also worries about the industry’s contributions to climate change. A recent report co-authored by FracTracker Alliance and the Center for Environmental Integrity found that plastic production and incineration in 2019 contributed greenhouse gas emissions equivalent to that of 189 new 500-megawatt coal power plants. If plastic production and use grow as currently planned, these emissions could rise to the equivalent to the emissions released by more than 295 coal-fired power plants. Locking in these emissions for decades to come has some wondering how Pennsylvania will reach its carbon budget goal of 58 million tons of CO2 in 2050.

 

Health Concerns

In addition to economic and environmental concerns, HB1100 has come under criticism for its potential to worsen the health impacts associated with natural gas and petrochemical development, which range from asthma attacks, cardiovascular disease, strokes, abnormal heart rhythms and heart attacks. Research has also shown that natural gas and petrochemical development increase the risk of cancer, and there is growing evidence that air pollution affects fetal development and adverse birth outcomes.

Moving Forward

It is now in the hands of Governor Wolf to either pass or veto HB1100. Wolf’s spokesman J.J. Abbott said that the governor “believes such projects should be evaluated on a specific case-by-case basis. However, if there was a specific project, he would be open to a conversation.”

One in three jobs in Pennsylvania’s energy sector are in clean energy. Many taxpayers will continue to push for policies that support this kind of job creation and investment in public services and infrastructure. Will our Commonwealth leaders listen, or will they continue to prioritize fossil fuel companies?

Learn More

Visualize the petrochemical buildout by exploring FracTracker’s maps.

Attend an informative press conference

Penn Future and dozens of other groups are holding a press conference in Harrisburg on March 9th.

Harrisburg Press Conference - March 9

When: Monday, March 9, 10:00 – 11:00 AM
Where: Pennsylvania State Capitol – Main Rotunda
State and Third Street
Harrisburg, PA 17101

The list of speakers is subject to change. Current confirmed speakers include:
Jacquelyn Bonomo, President and C.E.O., PennFuture
State Representative Sara Innamorato, (21st House District)
State Representative Chris Rabb, (200th House District)
State Representative Carolyn Comitta, (156th House District)
State Senator Katie Muth, (44th Senatorial District)
Veronica Coptis, Executive Director, The Center for Coalfield Justice
Ashleigh Deemer, Deputy Director, PennEnvironment
Rabbi Daniel Swartz, Temple Hesed
Briann Moye, One Pennsylvania

You can contact PennFuture Western Pennsylvania Outreach Coordinator, Kelsey Krepps, at krepps@pennfuture.org or (412) 224 – 4477 with any questions or concerns.

Cover photo showing early construction (2016) of the Shell Ethane Cracker in Beaver County, PA. By Ted Auch, FracTracker Alliance. Aerial assistance provided by LightHawk. Provided by FracTracker Alliance, fractracker.org/photos.

Support this work

Stay in the know

National Energy and Petrochemical Map

FracTracker Alliance has released a new national map, filled with energy and petrochemical data. Explore the map, continue reading to learn more, and see how your state measures up!

The items on the map (followed by facility count in parenthesis) include:

         For oil and gas wells, view FracTracker’s state maps. 

This map is by no means exhaustive, but is exhausting. It takes a lot of infrastructure to meet the energy demands from industries, transportation, residents, and businesses – and the vast majority of these facilities are powered by fossil fuels. What can we learn about the state of our national energy ecosystem from visualizing this infrastructure? And with increasing urgency to decarbonize within the next one to three decades, how close are we to completely reengineering the way we make energy?

Key Takeaways

  • Natural gas accounts for 44% of electricity generation in the United States – more than any other source. Despite that, the cost per megawatt hour of electricity for renewable energy power plants is now cheaper than that of natural gas power plants.
  • The state generating the largest amount of solar energy is California, while wind energy is Texas. The state with the greatest relative solar energy is not technically a state – it’s D.C., where 18% of electricity generation is from solar, closely followed by Nevada at 17%. Iowa leads the country in relative wind energy production, at 45%.
  • The state generating the most amount of energy from both natural gas and coal is Texas. Relatively, West Virginia has the greatest reliance on coal for electricity (85%), and Rhode Island has the greatest percentage of natural gas (92%).
  • With 28% of total U.S. energy consumption for transportation, many of the refineries, crude oil and petroleum product pipelines, and terminals on this map are dedicated towards gasoline, diesel, and other fuel production.
  • Petrochemical production, which is expected to account for over a third of global oil demand growth by 2030, takes the form of chemical plants, ethylene crackers, and natural gas liquid pipelines on this map, largely concentrated in the Gulf Coast.

Electricity generation

The “power plant” legend item on this map contains facilities with an electric generating capacity of at least one megawatt, and includes independent power producers, electric utilities, commercial plants, and industrial plants. What does this data reveal?

National Map of Power plants

Power plants by energy source. Data from EIA.

In terms of the raw number of power plants – solar plants tops the list, with 2,916 facilities, followed by natural gas at 1,747.

In terms of megawatts of electricity generated, the picture is much different – with natural gas supplying the highest percentage of electricity (44%), much more than the second place source, which is coal at 21%, and far more than solar, which generates only 3% (Figure 1).

National Energy Sources Pie Chart

Figure 1. Electricity generation by source in the United States, 2019. Data from EIA.

This difference speaks to the decentralized nature of the solar industry, with more facilities producing less energy. At a glance, this may seem less efficient and more costly than the natural gas alternative, which has fewer plants producing more energy. But in reality, each of these natural gas plants depend on thousands of fracked wells – and they’re anything but efficient.Fracking's astronomical decline rates - after one year, a well may be producing less than one-fifth of the oil and gas it produced its first year. To keep up with production, operators must pump exponentially more water, chemicals, and sand, or just drill a new well.

The cost per megawatt hour of electricity for a renewable energy power plants is now cheaper than that of fracked gas power plants. A report by the Rocky Mountain Institute, found “even as clean energy costs continue to fall, utilities and other investors have announced plans for over $70 billion in new gas-fired power plant construction through 2025. RMI research finds that 90% of this proposed capacity is more costly than equivalent [clean energy portfolios, which consist of wind, solar, and energy storage technologies] and, if those plants are built anyway, they would be uneconomic to continue operating in 2035.”

The economics side with renewables – but with solar, wind, geothermal comprising only 12% of the energy pie, and hydropower at 7%, do renewables have the capacity to meet the nation’s energy needs? Yes! Even the Energy Information Administration, a notorious skeptic of renewable energy’s potential, forecasted renewables would beat out natural gas in terms of electricity generation by 2050 in their 2020 Annual Energy Outlook.

This prediction doesn’t take into account any future legislation limiting fossil fuel infrastructure. A ban on fracking or policies under a Green New Deal could push renewables into the lead much sooner than 2050.

In a void of national leadership on the transition to cleaner energy, a few states have bolstered their renewable portfolio.

How does your state generate electricity?
Legend

Figure 2. Electricity generation state-wide by source, 2019. Data from EIA.

One final factor to consider – the pie pieces on these state charts aren’t weighted equally, with some states’ capacity to generate electricity far greater than others.  The top five electricity producers are Texas, California, Florida, Pennsylvania, and Illinois.

Transportation

In 2018, approximately 28% of total U.S. energy consumption was for transportation. To understand the scale of infrastructure that serves this sector, it’s helpful to click on the petroleum refineries, crude oil rail terminals, and crude oil pipelines on the map.

Map of transportation infrastructure

Transportation Fuel Infrastructure. Data from EIA.

The majority of gasoline we use in our cars in the US is produced domestically. Crude oil from wells goes to refineries to be processed into products like diesel fuel and gasoline. Gasoline is taken by pipelines, tanker, rail, or barge to storage terminals (add the “petroleum product terminal” and “petroleum product pipelines” legend items), and then by truck to be further processed and delivered to gas stations.

The International Energy Agency predicts that demand for crude oil will reach a peak in 2030 due to a rise in electric vehicles, including busses.  Over 75% of the gasoline and diesel displacement by electric vehicles globally has come from electric buses.

China leads the world in this movement. In 2018, just over half of the world’s electric vehicles sales occurred in China. Analysts predict that the country’s oil demand will peak in the next five years thanks to battery-powered vehicles and high-speed rail.

In the United States, the percentage of electric vehicles on the road is small but growing quickly. Tax credits and incentives will be important for encouraging this transition. Almost half of the country’s electric vehicle sales are in California, where incentives are added to the federal tax credit. California also has a  “Zero Emission Vehicle” program, requiring electric vehicles to comprise a certain percentage of sales.

We can’t ignore where electric vehicles are sourcing their power – and for that we must go back up to the electricity generation section. If you’re charging your car in a state powered mainly by fossil fuels (as many are), then the electricity is still tied to fossil fuels.

Petrochemicals

Many of the oil and gas infrastructure on the map doesn’t go towards energy at all, but rather aids in manufacturing petrochemicals – the basis of products like plastic, fertilizer, solvents, detergents, and resins.

This industry is largely concentrated in Texas and Louisiana but rapidly expanding in Pennsylvania, Ohio, and West Virginia.

On this map, key petrochemical facilities include natural gas plants, chemical plants, ethane crackers, and natural gas liquid pipelines.

Map of Petrochemical Infrastructure

Petrochemical infrastructure. Data from EIA.

Natural gas processing plants separate components of the natural gas stream to extract natural gas liquids like ethane and propane – which are transported through the natural gas liquid pipelines. These natural gas liquids are key building blocks of the petrochemical industry.

Ethane crackers process natural gas liquids into polyethylene – the most common type of plastic.

The chemical plants on this map include petrochemical production plants and ammonia manufacturing. Ammonia, which is used in fertilizer production, is one of the top synthetic chemicals produced in the world, and most of it comes from steam reforming natural gas.

As we discuss ways to decarbonize the country, petrochemicals must be a major focus of our efforts. That’s because petrochemicals are expected to account for over a third of global oil demand growth by 2030 and nearly half of demand growth by 2050 – thanks largely to an increase in plastic production. The International Energy Agency calls petrochemicals a “blind spot” in the global energy debate.

Petrochemical infrastructure

Petrochemical development off the coast of Texas, November 2019. Photo by Ted Auch, aerial support provided by LightHawk.

Investing in plastic manufacturing is the fossil fuel industry’s strategy to remain relevant in a renewable energy world. As such, we can’t break up with fossil fuels without also giving up our reliance on plastic. Legislation like the Break Free From Plastic Pollution Act get to the heart of this issue, by pausing construction of new ethane crackers, ensuring the power of local governments to enact plastic bans, and phasing out certain single-use products.

“The greatest industrial challenge the world has ever faced”

Mapped out, this web of fossil fuel infrastructure seems like a permanent grid locking us into a carbon-intensive future. But even more overwhelming than the ubiquity of fossil fuels in the US is how quickly this infrastructure has all been built. Everything on this map was constructed since Industrial Revolution, and the vast majority in the last century (Figure 3) – an inch on the mile-long timeline of human civilization.

Figure 3. Global Fossil Fuel Consumption. Data from Vaclav Smil (2017)

In fact, over half of the carbon from burning fossil fuels has been released in the last 30 years. As David Wallace Wells writes in The Uninhabitable Earth, “we have done as much damage to the fate of the planet and its ability to sustain human life and civilization since Al Gore published his first book on climate than in all the centuries—all the millennia—that came before.”

What will this map look like in the next 30 years?

A recent report on the global economics of the oil industry states, “To phase out petroleum products (and fossil fuels in general), the entire global industrial ecosystem will need to be reengineered, retooled and fundamentally rebuilt…This will be perhaps the greatest industrial challenge the world has ever faced historically.”

Is it possible to build a decentralized energy grid, generated by a diverse array of renewable, local, natural resources and backed up by battery power? Could all communities have the opportunity to control their energy through member-owned cooperatives instead of profit-thirsty corporations? Could microgrids improve the resiliency of our system in the face of increasingly intense natural disasters and ensure power in remote regions? Could hydrogen provide power for energy-intensive industries like steel and iron production? Could high speed rail, electric vehicles, a robust public transportation network and bike-able cities negate the need for gasoline and diesel? Could traditional methods of farming reduce our dependency on oil and gas-based fertilizers? Could  zero waste cities stop our reliance on single-use plastic?

Of course! Technology evolves at lightning speed. Thirty years ago we didn’t know what fracking was and we didn’t have smart phones. The greater challenge lies in breaking the fossil fuel industry’s hold on our political system and convincing our leaders that human health and the environment shouldn’t be externalized costs of economic growth.

Support this work

Stay in the know

destroyed home following pipeline explosion in San Bruno, CA

Pipelines Continue to Catch Fire and Explode

For the past decade, petroleum operators in the United States have been busy pumping record amounts of oil and gas from the ground. But has the pace been too frenzied? Since the vast majority of the oil and gas is not used in situ, the industry must transport these hydrocarbon products to other locations. The principal way of achieving this is through pipelines, a process which has resulted in thousands of incidents, causing hundreds of injuries and fatalities, thousands of evacuations, and billions of dollars’ worth of damage.

The United States has an estimated 3 million miles of hazardous liquid, gas distribution, and gathering and transmission pipelines in operation, and more are being built every day. Not only have the pipelines themselves become so ubiquitous that most people never give them a second thought, the incidents themselves have become so familiar to us that even severe ones struggle to gain any attention outside of the local media area.

In 2019, there were 614 reported pipeline incidents in the United States, resulting in the death of 10 people, injuries to another 35, and about $259 million in damages. As mentioned below, some of these totals are likely to creep upward as additional reports are filed. In terms of statistical fluctuations, 2019 was slightly better than normal, but of course statistics only tell a part of the story. Friends and family of the ten people that died last year would find no comfort knowing that there were fewer such casualties than 2017, for example. Similarly, it would be useless to comfort a family that lost their home by reminding them that someone lost an even bigger and more expensive home the year before.

Keeping in mind the human impact, let’s take a look at the data.

Pipeline Incident Summary

These incidents are broken into three separate reports:

  1. Hazardous Liquids (including crude oil, refined petroleum products, and natural gas liquids).
  2. Gas Distribution (lines that take gas to residents and other consumers),
  3. Gas Transmission & Gathering (collectively bringing gas from well sites to processing facilities and distant markets), and

View map fullscreen | How FracTracker maps work

Table 1: Summary of pipeline incidents from 1/1/2010 through 12/31/2019

Report Incidents Fatalities Injuries Evacuees Damages ($) Fires Explosions
Hazardous Liquids Lines 3,978 10 26 2,482 2,812,391,218 130 15
Gas Transmission & Gathering Lines 1,226 25 108 12,984 1,315,162,976 133 57
Gas Distribution 1,094 105 522 20,526 1,229,189,997 659 257
Totals 6,298 140 656 35,992 5,356,744,191 922 329

But is increasing the capacity of the pipes a good idea? As FracTracker has shown in the past, pipeline incidents occur at a rate of about 1.7 per day incidents per day. This holds true with updated data, showing 6,298 incidents from January 1, 2010 through December 17, 2019, which was the latest report filed when the data was downloaded in early February 2020.

Pipeline Usage in the United States

In 2018, roughly three million miles of natural gas pipelines transported almost 28 trillion cubic feet (Tcf) of gas, which is roughly 13 times the volume of Mount Everest. For liquids, pipeline data is available showing shipments of from one region of the country (known as a PAD District) to another, which shows that 1.27 billion barrels of crude oil were shipped through almost 81,000 miles of pipelines in 2018, and 3.39 billion barrels through nearly 214,000 miles of pipes when counting natural gas liquids and refined petroleum products.

Note that these figures are less than 2018 estimates based on 70% of liquid petroleum products being moved by pipeline. This discrepancy could be accounted for by the dramatic increase in production in recent years, or perhaps by intra-PAD shipments not listed in the data above. For example, petroleum produced in the Permian Basin in western Texas and eastern New Mexico may travel nearly 500 miles by pipeline en route to export terminals on the Gulf coast, while remaining in the same PAD District. If the 70% estimate holds true, then roughly 2.8 billion barrels (117 billion gallons) of crude would be shipped by pipeline, more than twice as much as the 1.27 billion barrel figure shown above.

The drilling boom in the United States was quickly followed by a boom in pipeline construction. Total mileage for liquid pipelines – known as hazardous liquid lines – increased by 20% from 2010 to 2018. For those aware of thousands of miles of recent gas pipeline projects, it is confusing to hear that the data from the Pipeline and Hazardous Materials Safety Administration (PHMSA) are mixed for natural gas. It does show a 2.4% increase in total miles for gas distribution mainlines to 1.3 million miles, and a 2.0% increase over the same time in distribution service lines, which run from the mainlines to the consumer. However, the total mileage for transmission lines – which are large diameter pipes that move gas long distances – actually contracted 2.1% to just under 302,000 miles. Total mileage for gathering lines fell even more, by 8.4% to just under 18,000 miles. However, since PHMSA estimates only 5% of gathering lines report to the agency, this last figure is probably not a valid estimate.

If this data is accurate, it means that the thousands of miles of transmission and gathering lines built in recent years were more than offset by decommissioned routes. However, given the record production levels mentioned above, it is almost certain that total capacity of the system has gone up, which can be accomplished through a combination of increased pressure and diameter of the pipe.

Hazardous Liquids

Table. 2. Hazardous Liquid Pipeline Incident Impact Summary. Data from PHMSA.
Year Incidents Fatalities Injuries Evacuees Damages ($) Fires Explosions
2010 350 1 3 686 1,075,193,990 8 1
2011 344 0 1 201 273,526,547 9 2
2012 366 3 4 235 145,477,426 10 2
2013 401 1 6 858 278,525,540 15 2
2014 455 0 0 34 140,211,610 20 4
2015 460 1 0 138 256,251,180 16 1
2016 420 3 9 104 212,944,094 17 2
2017 415 1 1 58 163,118,772 7 0
2018 405 0 2 165 152,573,682 15 1
2019 362 0 0 3 114,568,377 13 0
Grand Total 3978 10 26 2482 2,812,391,218 130 15

The most important statistics when considering pipeline incidents are those representing bodily harm – injuries and fatalities. In those respects, at least, 2019 was a good year for hazardous liquid pipelines, with no reported injuries or fatalities. Most of the other metrics were below average as well, including 362 total incidents, three evacuees, $115 million in damages, and zero explosions. The 13 reported fires represents a typical year. However, we should keep in mind that the results may not be complete for 2019. The data was downloaded on February 3, 2020, but represented the January 2020 update of the dataset. Additionally, there is often a gap between the incident date and the reporting date, which is sometimes measured in months.

One thing that really sticks out about hazardous liquid pipelines is that the pipelines that fail the most often are the newest. Of the hazardous liquid incidents since 2010, 906 occurred in pipelines that were installed within the decade. By means of comparison, the same amount of incidents occurred in the same period for pipes installed in the 40 years between 1970 and 2009. Of course, the largest category is “Unspecified,” where the install year of the pipeline was left blank in 1,459 of the 3,978 total incidents (37%).

The causes of the incidents are dominated by equipment failure, where the 1,811 incidents accounted for 46% of the total. The next highest total was corrosion failure with 798 incidents, or 20% of the total. Six of the incidents in the “Other Outside Force Damage” are attributed to intentional damage, representing 0.15% of the total.

Gas Transmission & Gathering

Table. 3. Gas Transmission and Gathering Pipeline Incident Impact Summary. Data from PHMSA.
Year Incidents Fatalities Injuries Evacuees Damages ($) Fires Explosions
2010 116 10 61 373 596,151,925 19 7
2011 128 0 1 874 125,497,792 14 6
2012 116 0 7 904 58,798,676 15 7
2013 112 0 2 3,103 53,022,396 11 4
2014 142 1 1 1,482 61,533,154 15 6
2015 149 6 16 565 61,498,753 10 6
2016 97 3 3 944 107,524,564 8 4
2017 126 3 3 202 85,665,233 17 7
2018 118 1 7 4,088 77,753,611 17 6
2019 122 1 7 449 87,716,872 7 4
Grand Total 1,226 25 108 12,984 1,315,162,976 133 57

One person died and seven were injured from gas transmission and gathering line accidents that were reported to PHMSA in 2019, which were both below average for this dataset. The total number of incidents was typical, while the 499 evacuees, $88 million in property damage, seven fires, and four explosions were all below normal. Note that only a small fraction of the nation’s gathering lines are required to report incident data to PHMSA, so this data should not be seen as comprehensive. And as with the hazardous liquid incidents, it is likely that not all incidents occurring during the year have had reports filed in time for this analysis.

The distribution of the age of pipes that failed within the past decade is different from the hazardous liquid pipelines. Pipes installed in the 1950s, 1960s, and 1970s were the most likely to fail, although failures in routes built this century represent a secondary peak. The number of incidents where the age of pipe data field was not completed remains high at 135 incidents, but the data gap is not as outrageous as it is for hazardous liquid lines.

Once again, equipment failure is the most common cause of transmission and gathering line accidents, with 390 incidents accounting for 32% of the total. Corrosion failure was the second most common reason, with 239 incidents accounting for an additional 19%. One incident was attributed to intentional damage, accounting for 0.08% of the total.

Gas Distribution

Year Incidents Fatalities Injuries Evacuees Damages ($) Fires Explosions
2010 120 11 44 2,080 21,155,972 82 29
2011 116 13 53 4,417 27,105,022 73 32
2012 88 9 46 746 25,556,562 61 22
2013 104 8 36 1,606 37,363,960 59 20
2014 106 18 93 2,037 72,885,067 61 30
2015 101 4 32 948 32,176,608 65 24
2016 115 10 75 2,510 56,900,068 71 28
2017 104 16 34 1,960 72,226,380 57 17
2018 110 7 81 2,561 827,647,610 64 31
2019 130 9 28 1,661 56,172,748 66 24
Grand Total 1,094 105 522 20,526 1,229,189,997 659 257
Table 4. Gas Distribution Pipeline Incident Impact Summary. Data from PHMSA.

The nine fatalities and 28 injuries reported for gas distribution lines in 2019 were obviously tragic, but these totals are both below what would be expected in a typical year. The 130 incidents and 66 fires were both above average totals, while the 1,661 evacuees, $56 million in property damage, and 24 explosions were all below average. As with the other reports, these totals are subject to change as additional reports are filed.

The distribution for the age of pipes that failed during the past decade is more like a normal (or bell curve) distribution than the other two datasets, with the most incidents occurring in pipeline routes laid in the 1990s. Much like the hazardous liquids dataset, however, the largest category is “Unspecified”, where the age of the pipe was not entered into the data for one reason or another. These 222 incidents account for 20% of the total, and if we had this data, the distribution could be significantly different.

The causes of distribution line incidents are attributed very differently than either the hazardous liquids or transmission and gathering line datasets. The leading cause is “Other Outside Force Damage,” with 355 incidents accounting for 32% of the total, followed by 330 “Excavation Damage” incidents accounting for an additional 30%. This difference could well be explained because this type of line tends to occur in highly populated areas. The largest subtype for the outside force damage category is damage by motor vehicles not involved in excavation, with 160 incidents, followed by fires or explosions which the operator claims did not originate with the pipeline, with 78 incidents. Intentional damage remains rare – although still way too high – with 15 incidents, or 1.4% of the overall total.

Data Notes

PHMSA incident data is ultimately self-reported by the various operators. Because the vast majority of gathering lines do not report to the agency, this dataset should not be seen as comprehensive for incidents in that category.

There were eleven issues with faulty location data that we were able to correct for this map. There are likely to be more, as only the ones with coordinates rendering outside of the United States were identified. Some of these had mixed up latitude and longitude values, or omitted the negative value for longitude, placing the points in Kyrgyzstan, the Himalayas, and Mongolia. One record had no coordinates at all, but included a detailed description of the location, which was then found on Google Maps. Two wells that rendered in Canada were on the correct longitude for the county that they belonged in, but had faulty latitude values. One of these was reduced by exactly 20° of latitude, while the other was reduced by exactly 7° of latitude, and were then located in the proper county. Other than the adjustments for these eleven incidents, all location data reflects the data available on the PHMSA .

Additional Leaks

The data above reflects 6,298 incidents over the course of a decade, with a few more incidents likely to trickle in during the next few updates of the reports by PHMSA. And while these discrete incidents account for the majority of human impacts in terms of life and well-being, it is worth noting that these 1.7 incidents per day are not the only problems that occur along millions of miles of pipelines in this country.

William Limpert has analyzed information about pipeline leakage in gas transmission lines, which found that 0.35% of the volume of gas was lost in transmission, one tenth of which was vented or flared intentionally, for example in compressor station blowdown events. This means that 0.315% of the gas is released unintentionally.

These numbers sound tiny, but due to the enormous volume of gas transported in pipes, they really add up quickly. For example, the Atlantic Coast Pipeline, Mr. Limpert’s primary focus, is scheduled to transmit 1.5 billion cubic feet (Bcf) of natural gas per day. At a typical rate of failure, we could expect leakage of 4.725 million cubic feet (MMcf) per day, or 1.725 billion cubic feet over the course of a year. That’s enough gas to provide to all Pennsylvania residential consumers for about 13 days in August, and this is just from one pipeline.

As mentioned above, the entire pipeline network moved about 28 Tcf in 2018. The estimated amount leaked at 0.315% is 88.2 Bcf. What would residential consumers pay for that volume of gas? Even with the current low prices due to the gas glut, the average residual price was $9.43 per Mcf in November 2019, the most recent data available. That means that residential consumers would pay roughly $832 million for an equivalent amount of gas.

Still More Leaks

There are also countless leaks that occur during the construction of the pipelines themselves. When pipelines are built, they have numerous obstacles to navigate during their construction. Among the most challenging are linear obstacles, such as roads and streams. A method that the industry regularly uses to avoid having to trench through these features is horizontal directional drilling (HDD).

While HDDs are meant to minimize impacts, they very frequently result in an incident known as an “inadvertent return,” when volumes of drilling mud return to the surface through a series of underground voids, frequently karst geology or abandoned mines. The leaking borehole under the road or stream then leaks drilling mud – sometimes thousands of gallons of it – which can then affect aquatic stream life. Additionally, these areas represent voids in the matrix that is intended to keep the pipeline stable and may represent future opportunities for catastrophic failure.

These features are so prevalent in some parts of the country that pipeline operators seem to be unable to avoid them, and regulators seem unwilling to press the issue in a proactive fashion. For example, Energy Transfers’ Mariner East II pipeline is currently being built to move natural gas liquids from Appalachia to its industrial complex and export terminal at Marcus Hook, Pennsylvania. During construction, there have been hundreds of inadvertent returns, both to the soil and waters of the Commonwealth. The presence of karst and abandoned mines along the route were well known ahead of time to the operator designing and implementing the HDDs, as well as the regulators who approved their use.

The many issues along the Mariner East II route, when combined with a massive pipeline explosion in Beaver County led to Pennsylvania’s decision to temporarily block all permit actions by the operator statewide. That hold is now lifted, leading residents along the route worried about a new batch of inadvertent returns, related sinkholes, and other follies as the project is completed. Construction activities for the parallel Mariner East 2X pipeline are already underway.

While residents along the Mariner East pipeline system have seen more than their fair share of impacts from the construction, these impacts are not at all rare on unusual. What is unusual, however, is for regulators to provide data highlighting these types of errors. In Pennsylvania, enough people requesting data on a variety of problematic pipelines has prompted the Department of Environmental Protection to create a Pennsylvania Pipeline Portal page. This only includes information on recent major pipeline projects and is not comprehensive in terms of content, but it is a major step in the right direction in terms of data transparency.

Can We Do Better?

Statistics can never capture the full force of tragedies. Most of us are aware of this point intellectually, and yet when we are confronted with such numbers, it seems that we are obliged to process them in one form or another. Perhaps the most common way is to compartmentalize it, where we might acknowledge the data and misfortune that they represent, but the file it away in the messy cabinet of our mind, clearing the slate of active thought for the next bit of information. Many of us never stop to question whether we can do better.

So, can we do better with pipelines? Perhaps so. If there are structural hazards such as abandoned mines or karst, perhaps regulators could demand that the operator route around them. If there are residents nearby, communities should demand that the pipeline get rerouted as well. Of course, these reroutes will just push the impacts elsewhere, but hopefully to an area where people won’t be affected by them, if such a place exists. Certainly, there could be better standards for construction and identification, so that there are fewer accidents involving pipelines. Or better yet, we could transition to renewable fuels for an ever-increasing share of our energy needs, making dirty and dangerous pipelines a relic of the past.

The one thing that we can no longer afford to do is continue to stick our fingers in our ears and dismiss the entire issue of pipeline safety as manageable or the cost of doing business.

By Matt Kelso, Manager of Data and Technology, FracTracker Alliance

Feature image at top of page shows San Bruno, California, following the 2010 pipeline explosion

Support this work

Stay in the know

 

Virtual Pipelines - Potential Routes to Cayuga

Virtual pipelines: Convenient for Industry, a Burden on Communities

As the natural gas industry faces harsher and more widespread critiques from environmentalists and citizens, pipeline projects are facing delays, fines, and defeat. Aside from the questionable economics behind transporting gas and oil by pipeline, there are broad economic risks associated with pipeline accidents. With an increasing list of pipeline-related accidents in the public eye, including the two this past summer in Texas and Kansas, blasts this fall in Beaver County, PA, and in Boston, MA, scrutiny of new pipeline projects is on the uptick.

That being said, what is the alternative?

Virtual Pipelines?

Virtual Pipeline - Oil and gas truck

Loaded CNG transport vehicle

Industry, not deterred by resistance from regulators and environmentalists, has developed a new work-around method to get their product to market. Rather than build pipelines across rugged, remote, or highly-populated terrain, a new “solution” called “virtual pipelines” has come on the scene, with roots in New England in 2011.

The term “virtual pipeline,” itself, is so new that it is trademarked by Xpress Natural Gas (XNG), Boston, MA. XNG and other virtual pipeline companies use specially-designed tanker trucks to move compressed natural gas (CNG) or liquefied natural gas (LNG) via our public roads and highways. CNG in this system is under very high pressure — up to 3,600 psi when tank trailers are full. Rail and barge shipments are also considered part of the system, and trailers are designed to be easily loaded onto train cars or boats.

For the gas industry, virtual pipelines can be used in locales where gas is only needed for a limited time period, the pipeline network is not developed, or opposition by landowners is too contentious to make eminent domain an option, among other issues. These virtual pipeline trucks are identifiable by the hazard .1 placard they carry: 1971, indicative of flammable, compressed natural gas or methane.

Restricted only by permissible weight limits on roads (up to 80,000 pounds or more), 5-axle trucks may make in excess of 100 round trips a day from the fueling location to their destination — sometimes hundreds of miles away. These trucks, which may travel alone or in caravans, are identifiable by the hazard class 2.1 placard they carry: 1971, indicative of flammable, compressed natural gas or methane. Manufacturers of these virtual pipeline rigs tout the safety considerations that go into their engineered design. These considerations include special pressure monitoring for the dozens of tanks and super-strength materials to protect against ruptures.

Specialized equipment has been created to load compressed gas tanks into the trailers that will carry them to their destinations. Here’s a promotional video from Quantum:

Loading CNG into specialized trailers for transport

Impacts on Communities

Following New York State’s rejection of the Constitution Pipeline in 2016 based on water quality concerns, industry has been looking for ways to move natural gas from Pennsylvania’s Marcellus gas fields to the Iroquois Pipeline. The current strategy is to load the gas in canisters from a special compressor facility, and re-inject the gas to a pipeline at the journey’s endpoint. The extent to which virtual pipelines may be utilized in New York State and New England is not well known, but the natural gas industry does speak in sanguine terms about this strategy as a solution to many of its transportation issues.

Citizen blogger/activist Bill Huston has compiled a list accidents that have occurred with CNG transport trucks along the virtual pipeline that runs from a “mother station” at Forest Lake, PA to Manheim, NY, near the Iroquois pipeline. While there have been no explosions or loss of life as a result of these accidents, there are a number of reported incidents of trucks tipping or rolling over, sliding off the road, or spontaneously venting.

To move CNG from “Point A” to “Point B,” truck traffic through populated areas is unavoidable. In central New York, public outcry about virtual pipelines is rising, due in large part to the safety issues associated with increased truck traffic on state highways. In rural New York, state highways run through towns, villages, and cities. They are not separated from population centers in the way that interstate highways typically are. Traffic from CNG transport trucks clogs roadways, in some cases burdening the pass-through communities with 100 or more tractor trailers a day. Routes pass directly in front of schools and health care facilities.

In short, virtual pipelines present a public safety hazard that has yet to be addressed.

Virtual Pipelines and the Cayuga Power Plant 

In Lansing, NY, there is an inefficient and economically-beleaguered power plant, currently run on coal, that the power utility would prefer to see shut down. The Cayuga Power Plant was cited in 2016 for exceeding mercury emissions by nearly 2000%. Its inherently inefficient design makes it a significant greenhouse gas contributor. Years ago, it provided considerable tax benefits to its host community of Lansing, and as such has some lingering support. After both a devastating fire in one stack and mechanical failure in another, the plant has been barely running for the past 3 or 4 years. It is currently used as a “peaker plant“, operating only during periods of excessive demand on the electric grid, during summer months.

New York State’s Governor, Andrew Cuomo, has stated that all coal-power plants will be shut down by 2020.

Cayuga Power Plant in Lansing, NY.

Nonetheless, the plant owners are pushing to re-power the Cayuga Power Plant with natural gas. Currently, however, there is no pipeline to deliver the gas to the plant.  Without support by the public nor the Public Service Commission for the construction of a supply pipeline, Cayuga Power Plant has revealed they plan to receive gas deliveries via truck.

Scenario Maps

FracTracker has modeled the five most likely scenarios that would take compressed natural gas from a loading station in northern Pennsylvania to the Cayuga Power Plant in Lansing. All of the scenarios bring the trucks through populated communities, in dangerous proximity to high-risk facilities where both human safety and evacuations are problematic. The routes also pass through intersections and road stretches that have some of the highest accident rates in the area.

Route 1: This route passes within a half mile of homes of 36,669 people in the Villages of Lansing, Candor, Spencer, Owego; Towns of Ithaca, Lansing, Newfield, Danby, Candor, Spencer, Tioga, Owego, Vestal; and the City of Ithaca. Within the half-mile evacuation zone of this route, should there be an accident, are:

  • 17 health care facilities
  • 20 day care centers
  • 4 private school
  • 21 public schools

Click on the tabs in the box above to explore the five potential truck routes with maps.

Interactive Map

For a full interactive map of the potential routes for CNG delivery to the Cayuga Power Plant, and the schools, health care facilities, etc. within a half-mile evacuation zone of the routes, view the interactive map below.

View map fullscreen | How FracTracker maps work

A Call for Alternative Energy

Despite the apparent convenience that virtual pipelines present for the fossil fuel industry, they are not the solution the future energy supply needs. Yes, they present an alternative to pipeline transportation — but they also play a disastrous role in continuing our descent into climate chaos caused by increasing greenhouse gas concentrations in the atmosphere.

Methane leakage is an unavoidable component of the entire life cycle of natural gas usage — from “cradle to grave” — or more precisely, from the moment a well is drilled to when the gas is combusted by its end-user. And methane, as a greenhouse gas, is up to 100 times more potent than carbon dioxide. The Intergovernmental Panel on Climate Change’s (IPCC) recent report (see summary here) is unflinching in its clarion call for immediate, and extreme, cut-backs in greenhouse gas production. If we choose not to heed this call, much of humanity’s future survival is called into question.


By Karen Edelstein, Eastern Program Coordinator, FracTracker Alliance

More of the details about the Cayuga Power Plant will be explained in the upcoming weeks in a related guest blog by environmental activist and organizer, Irene Weiser, of Tompkins County, NY.

 

 

Gas-Fired Power Plant Buildout in PA

Wanted: More Places to Burn Natural Gas

By Alison Grass, Senior Researcher at Food & Water Watch

Over the past decade, the natural gas industry has experienced a renaissance that has been a boon to energy company profits. But it has altered the quality of life for the rural communities where most new gas wells have been drilled. Now, fracking is fueling a gas-fired power plant boom in Pennsylvania, with 47 new facilities. Most have already been approved, with a handful in commercial operation (see map below).

New research by Pennsylvanians Against Fracking shows, in vivid detail, the scale of this buildout, and the impacts it will have on Pennsylvania communities.

Current & Potential PA Gas-Fired Power Plants & their Emissions

View Map Fullscreen

Approximately half of the new gas power plants are located in northeastern region of Pennsylvania, a part of the state already overburdened by the lingering environmental maladies of coal mining and the more recent dangers associated with fracking. These rural communities may see increased drilling, fracking and pipeline construction to support the power plants — and the siting could be strategic. In a StateImpact Pennsylvania article about the first Marcellus shale gas power plant, for example, a company representative admitted that the location was chosen specifically due to its convenient access to shale gas. “This plant was sited precisely where it is because of its access to the abundant, high-quality natural gas that’s found a mile to two miles beneath our feet.”

Drilling Trends

The first modern Marcellus well was drilled in Pennsylvania by Range Resources in 2003, and commercial production began in 2005. Although fracking expanded rapidly in several areas across the country, Pennsylvania has been ground zero of the fracking boom, with just over 10,000 shale gas wells drilled between 2005 and 2016. Since then, however, there has been a rapid downturn in new wells drilled. After the early and dramatic increase in drilling – from 9 shale wells in 2005 to 1,957 shale wells in 2011 – the number dropped to 504 in 2016.

According to Natural Gas Intelligence, natural gas from the Appalachian Basin “…hit a roadblock in 2016, as pipeline projects struggled to move forward and a storage glut slowed the region’s previously rapid production growth.” Thus, it appears that in order to maintain fracking’s profitability, the gas industry is relying on new gas-fired power plants to alleviate the storage glut, while potentially increasing demand for shale gas (which could propagate more drilling and fracking).

Gas-Fired Power Plant Siting

The siting of these power plants also enables companies to use Pennsylvanian fracked gas to generate power for larger regional markets. This is because northeastern Pennsylvania is close to dense populations, including New York City. In Luzerne County, for instance, the new Caithness Moxie Freedom Generating Station gas-fired power plant will supply electricity to not just Pennsylvania residents, but also to New Jersey and New York State. And in the more central region of the state in Snyder County, the Panda Hummel Station will send “much of its power to the New York City market.”

Siting gas-fired power plants in the northeast may also increase drilling and fracking in the region, where gas is predominantly “dry”  and less profitable than the “wet” gas found in southwest PA. This trend is largely due to a resurgence in North American petrochemical markets and increased ethane exports that rely on wet gas. (Dry natural gas contains primarily methane and smaller amounts of other hydrocarbons, while wet natural gas has higher concentrations of natural gas liquids. Natural gas liquids — predominantly ethane but also propane, butane, isobutane and pentanes — are the raw materials for manufacturing petrochemicals.)

Well Integrity and Other Risks

However, increased drilling and fracking mean more pollution for the Marcellus shale region of Pennsylvania, where shale gas wells have proven to be more prone to well construction “impairments” and well integrity problems, compared to conventional wells. This risk is especially true in the northeastern part of the state, where over nine percent of shale gas wells have indications of compromised well integrity.

Overall, fracking causes many public health and environmental problems. Methane, fracking fluids, and wastewater can pollute water supplies and imperil the livelihoods of farmers, who rely on clean water. Increased truck traffic and drilling emissions reduce air quality, and methane leaks contribute to global warming. Meanwhile, the proliferation of natural gas derricks and associated infrastructure destroys pristine landscapes (and related tourism and recreation industries).

The last thing that Pennsylvanians need is another way for the oil and gas industry to capitalize on shale at the expense of residents’ health and well-being.

Photo by David Nix 2015

Documenting Oil and Gas Industry Damage in North Dakota

North Dakota is now in its third oil boom due to the drilling technologies of horizontal drilling and hydraulic fracturing that have made once-inaccessible oil accessible. The Bakken formation covers western North Dakota, eastern Montana, and parts of Manitoba and Saskatchewan. At the height of the boom in 2014, just under 12,000 wells were active across the west, extracting 1.1 million barrels (bbl) of oil per day and flaring at 32%. The boom has bumped North Dakota to the second largest oil and gas producing state, second only to Texas.

Dakota Resource Council (DRC) is a member-led, grassroots organization that has been working in extraction-impacted communities in North Dakota since 1978. DRC’s members work on oil and gas campaigns that aim to eliminate impacts to land, air, water, and livelihoods of the citizens of North Dakota. Campaign issues on oil and gas industry damage include: flaring, pipelines, radioactive/oilfield waste, state accountability, and oil-by-rail.

The following photos from DRC show impacts of current and legacy oil and gas extraction in western North Dakota – an area in the heart of the Bakken that is historically a rich agricultural and ranching region. The vast contrast between the two industries are not complementary.

Bear Den Bay Incident

Fort Berthold Indian Reservation is the epicenter of fracking in the Bakken. On July 8, 2014 a wastewater pipeline rupture was accidentally discovered in rural Mandaree on the reservation. The pipeline is owned by Crestwood Midstream, LLC – a Texas-based company.

An estimated 1 million gallons of toxic saltwater ran down a ravine, ending up in the tributary of Bear Den Bay, which is located ¼ mile from the city of Mandaree’s water intake. The spill was contained, but the state doesn’t know exactly how much waste went into the bay. Tribal administration released a statement that beaver dams prevented the fluids from reaching the lake.

Weeks after the incident Crestwood released a statement saying:

… while assessment of the effect is ongoing, examination and testing to date show that an area of grass, brush and trees about 200 yards long sustained damage. Some produced water ran down a ravine into natural pools in a small stream at the bottom, but it appears that the produced water stopped there… The impact on fish and wildlife appears to have been minimal, in fact beavers, turtles, frogs, deer and pelicans have been seen returning to and re-inhabiting the impacted area.

To date, there has been no penalty for the damage that has been done to the land and reclamation is ongoing. Below are photos documenting the incident’s effects:

The Legacy of North Dakota Oil Booms

Western North Dakota has weathered through two previous oil booms in the early 1950’s and 1980’s. Previous booms left behind infrastructure that sits abandoned today. Due to hydraulic fracking technology, once-inaccessible oil is now accessible. These pre-existing wells are called legacy wells, that produce roughly 5% of North Dakota’s 1.2 million barrels per day.

Much of these wells contain infrastructure that has been in place for over 60 years. Pipelines have not been mapped or regulated in North Dakota until recently. Farmers are finding underground tanks and pipelines filled with toxic sludge. Just like previous oil booms, North Dakota was not prepared for the cost of extraction. Scroll through the following gallery showing a variety of legacy sites in ND.


By Nicole Donaghy, Dakota Resource Council

Events

Nothing Found

Sorry, no posts matched your criteria