Energy In-depth: Regulators shut down drilling in central Oklahoma after 5.0 earthquake

Editor’s note: Each Friday, Talk Business & Politics provides “Energy In-depth,” a round-up of energy and regulatory news. 

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REGULATORS SHUT DOWN DRILLING IN CENTRAL OKLAHOMA AFTER 5.0 EARTHQUAKE
The Oil and Gas Division of the Oklahoma Corporation Commission (OCC) on Tuesday implemented an emergency plan to shutdown 58 disposal wells in response to a recent 5.0 earthquake in the Cushing area that was felt in six states. Cushing, in central Oklahoma, is the hub for the world’s largest petroleum storage facility, and is the starting point for the controversial 440-mile Diamond Pipeline project that will deliver premium grade crude oil across the state of Arkansas to Valero Corp.’s refinery in Memphis.

The Oklahoma response plan covers drilling activity in the Arbuckle formation, a 15,000 square mile deep underground rock basement that is used to dispose of waste from oil and gas drilling operations. State regulators also warned oil and gas operators in the area that work is underway on a broader plan that will encompass a greater area and more Arbuckle disposal wells. Work is expected to take several weeks. Regulators said they will target areas for additional scrutiny that are experiencing increased seismic activity, which has led to the shutting down of disposal wells or reducing the volume “fracking” activity in known fault lines where there is a correlation to earthquakes.

ENTERGY ACCELERATES PLANS TO DECOMMISSION VERMONT NUCLEAR PLANT
Entergy Corp., parent company of Entergy Arkansas, on Tuesday (Nov. 8) announced an agreement to sell Entergy Nuclear Vermont Yankee and transfer the U.S. Nuclear Regulatory Commission licenses to subsidiaries of NorthStar Group Services, Inc. to accelerate decommissioning and site restoration by decades. In addition, Entergy announced plans to accelerate the transfer of all spent nuclear fuel to dry cask storage at the Vermont Yankee Nuclear Power Station, from 2020 to 2018.

The sale of Entergy’s Nuclear Vermont Yankee (ENVY) is subject to closing conditions, including approval by the NRC and the Vermont Public Service Board. Entergy and NorthStar will ask the Public Service Board to approve proposed site restoration standards that are generally consistent with those of other regional decommissioning projects. The companies anticipate that the transaction will close by the end of 2018.

SOURCEGAS PARENT BUYS WIND ENERGY PROJECT IN COLORADO
Black Hills Corp., which completed its $2 billion acquisition of SourceGas earlier this year, has closed on the purchase of the $109 million, 60-megawatt Peak View Wind Project. Commercial operations will began on Nov. 7, nearly two months earlier than originally planned. “The Peak View Wind Project,” located about 40 miles south of Pueblo, Colorado, was constructed by Invenergy Wind Development Colorado LLC under a 2015 build-transfer agreement. Black Hills Energy said it will recover its investment through customer billing adjustment clauses for the first 10 years of operation. SourceGas has more than 160,000 customers in Northwest Arkansas.