US regulators approve more ETP Rover pipeline drilling

On December 14, US energy regulators approved Energy Transfer Partners (ETP) LP's request to resume horizontal drilling at eight sites in Ohio and West Virginia, as the company works to complete part of the Rover natural gas pipeline by the end of the year.

The approvals come as the Ohio Environmental Protection Agency (EPA) is seeking a pause in Rover's horizontal drilling in the state due to repeated spills of the clay-and-water mix used to lubricate the drilling blades.

The Ohio EPA asked the US Federal Energy Regulatory Commission (FERC) for the pause on November 24.

Pipeline companies use horizontal directional drilling (HDD) to cross under large obstacles like highways and rivers.

Once complete, the $4.2-B Rover pipeline will carry up to 3.25 Bft³d of gas from the Marcellus and Utica shale fields in Pennsylvania, Ohio and West Virginia to the US Midwest and to Ontario in Canada.

1 Bft³d of gas can supply approximately 5 MM US homes.

In a letter filed with FERC, ETP said the Ohio EPA "grossly mischaracterizes Rover's activities."

ETP said the five spills identified by the Ohio EPA in its November 24 request were at two locations, Captina Creek and Black Fork Mohican, and not "significant" in size, the biggest being an estimated 1,188 gal (4,500 l) at Captina Creek on October 11.

Ohio EPA spokesman James Lee said that there have been two additional spills since November 24, the biggest being an estimated 350 gal.

ETP said in its letter that Rover was in compliance with the FERC-approved plan that allowed the company to start horizontal drilling again in September.

FERC banned ETP from new horizontal drilling in May following a spill of around 2 MM gal (7.6 MM l) into the Tuscarawas River wetland in Ohio. There were traces of diesel found in that spill, which is the subject of a separate FERC investigation. Diesel was not allowed in the drilling fluid.

Resumption of drilling under the Tuscarawas River was included in the eight horizontal drills allowed by FERC on December 14.

ETP said that Rover was more than 95% complete. It expects to finish the first phase of the project in Ohio by year end, and the second phase from Ohio to Michigan by the end of 1Q 2018.

Major gas producers that have signed up to use Rover include units of privately held Ascent Resources LLC, Antero Resources Corp., Range Resources Corp., Southwestern Energy Co., Eclipse Resources Corp. and EQT Corp.

(Reporting by Scott DiSavino; editing by Richard Chang and Sandra Maler)

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