Appalachian Storage Hub

West Virginia Gas Companies Wined and Dined Lawmakers Before Scoring Favorable Fracking Legislation

Read time: 9 mins
Wine and dinner

A country club luncheon. A $130 steak dinner. A whiskey tasting. Dinner at an historic neo-Georgian mansion.

These are just a few examples of the many occasions last year when oil and gas lobbyists wined and dined West Virginia state lawmakers on key committees that craft fossil fuel legislation. Lobbyists representing industry players including natural gas giant EQT, Antero Resources, TransCanada, and multiple oil and gas trade associations wooed state lawmakers with thousands of dollars’ worth of food and drink throughout 2017, according to lobbying records obtained by DeSmog.

West Virginia Candidate Ousted From Hearing for Reading Industry Donors. But Bill She Opposed Just Passed in House.

Read time: 4 mins
Lissa Lucas being removed from the West Virginia Senate hearing on HB 4268

On Friday, February 9, Lissa Lucas — a Democratic Party candidate for West Virginia's House of Delegates — was forcibly removed from a Senate hearing for calling out how many thousands of dollars legislators backing a pro-oil and gas industry bill have received from that very industry.

The video of Lucas's public comment and removal has gone viral and served as a launching pad for her campaign, which has raised more than $46,000 since the incident. Previously, she had raised just over $4,000. Coincidentally, Lucas supports a publicly funded campaign finance system. 

The bill (HB 4268) she opposed, however, has passed in the West Virginia House of Delegates.

That law, “forced pooling” legislation which makes it easier for the oil and gas industry to obtain mineral rights from private landowners as a precursor to drilling, has the support of the West Virginia Oil and Natural Gas Association. It enables oil and gas companies to perform more hydraulic fracturing (“fracking”) on private land in the state by mandating that, rather than securing land lease contracts from all landowners, companies only need 75 percent of those living in an area to sign leases and are granted the remaining 25 percent by default.

China Is Financing a Petrochemical Hub in Appalachia. Meet its Powerful Backers.

Read time: 16 mins
U.S. President Trump, Chinese President Xi Jinping, and West Virginia Commerce Sec. Thrasher join in the Great Hall in Beijing for MOU signing for the Appalachian Development Hub  in November 2017

Over the past year, oil and gas industry plans to build a petrochemical refining and storage hub along the Ohio River have steadily gained traction. Proponents hope this potential hub, which would straddle Pennsylvania, Ohio, West Virginia, and Kentucky, could someday rival the industrial corridor found along the Gulf Coast in Texas and Louisiana.

Those plans center around creating what is known as the Appalachian Storage Hub, which received a major boost on November 9 during a trade mission to China attended by President Donald Trump and U.S. Secretary of Commerce Wilbur Ross. At that trade mission, also attended by Chinese President Xi Jinping, the China Energy Investment Corp. announced the signing of a memorandum of understanding (MOU) to invest $83.7 billion into the planned storage hub over 20 years. For comparison, West Virginia's gross domestic product (GDP) in 2016 was $72.9 billion.

Though called the Appalachian Storage Hub as a broad-sweeping term, in practice the hub could encompass natural gas liquids storage, a market trading index center, a key pipeline feeding epicenter, and a petrochemical refinery row. Its prospective development has been spurred by the current construction of a $6 billion petrochemical refining facility in Pennsylvania owned by Shell Oil.

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