PA’s Shale Impact Fee Benefits Every Corner of the State
Stephanie Catarino Wissman, executive director of the American Petroleum Institute Pennsylvania, argues in a recent op-ed that Pennsylvania’s Act 13 natural gas impact fee has successfully paired shale development with local investment since 2012. Unlike a severance tax, the fee directs revenue to counties, municipalities, and environmental programs, generating nearly $3 billion overall and more than $1 billion from 2020 to 2024. Funds have supported roads, bridges, stormwater systems, emergency services, parks, watershed restoration, abandoned mine reclamation, orphan well plugging, and tax relief. Read More “PA’s Shale Impact Fee Benefits Every Corner of the State”
Energy Transfer (ET) disclosed last week that co-CEO Marshall “Mackie” McCrea III will retire on or before December 31, 2026, with co-CEO Thomas Long set to become sole CEO upon McCrea’s departure. The company said McCrea cited a desire to pursue personal objectives and spend more time with his family, while also expressing confidence that the partnership is well-positioned for the future. ET owns important assets in the Marcellus/Utica region, including the Mariner East and Rover pipeline systems. Does McCrea’s retirement signal anything about the company’s future with the M-U? 
According to José Costa of the Northeast Gas Association, Massachusetts’ high energy bills (some of the highest in the country!) stem from infrastructure constraints rather than price volatility. That is, Democrat politicians like Gov. Maura Healey have blocked new pipelines with additional capacity from entering the state. Although the nearby Marcellus Shale produces abundant, affordable natural gas, New England’s pipeline system operates at capacity during extreme winter cold. These physical bottlenecks restrict gas delivery, driving up spot prices to nearly 17 times Pennsylvania’s levels. The same supply with far more demand equals soaring prices. It’s Economics 101. 
On March 18, President Trump issued a 60-day waiver pausing the enforcement of the Jones Act (see 
NATIONAL: U.S. natural gas futures pull back after gains; Why America can’t build the natural gas pipelines it needs; INTERNATIONAL: Oil retreats on global demand fears; Israel fires back at Iran after missile attacks; UK sees risk of $100 oil until 2028; Survey shows OPEC output plunges further; Qatar quietly sends LNG tanker through Hormuz despite tensions. 
The Marcellus/Utica region received 30 new drilling permits last week, May 25 – 31, up from 15 permits issued two weeks ago. However, not all 30 permits reported last week were issued last week. Ohio, which is occasionally tardy in updating its public reports, included permits in last week’s report that should have been included in the previous week’s report. Last week, Pennsylvania issued 8 permits. Ohio issued 17 new permits, of which 9 were from last week, and 8 were from the week before but not reported until last week. West Virginia issued 5 new permits last week. The drillers who received new permits included: Antero Resources, Ascent Resources, Clean Energy E&P, EOG Resources, Expand Energy, Grenadier Energy, and Range Resources. 
In a significant ruling for Utica and Marcellus shale landowners, the Ohio Seventh District Court of Appeals affirmed a trial court’s decision denying a motion by Ascent Resources to compel arbitration in a lease-expiration dispute. The court ruled that when an oil and gas lease expires by its own terms without active production or drilling operations, the lease’s arbitration clause does not survive the lease’s expiration to govern subsequent disputes—such as claims of trespass and unauthorized drilling. To force arbitration on post-expiration events, a lease must contain explicit “survival” language or involve rights that accrued/vested while the lease was still active. 
Google has partnered with Voltus to fund a three-year, 100-megawatt (MW) so-called “virtual power plant” in the PJM Interconnection (roughly the Marcellus/Utica region). VPPs are designed to address soaring data center demand. Voltus will “aggregate” distributed energy resources from residential, commercial, and industrial customers. We call foul. So-called VPPs are fake—they don’t actually exist. They simply use existing grid electricity taken from other sources. Creating a VPP just takes a little software and a lot of apathy from citizens to make it work. Google will, in essence, pay other electricity consumers to shift or forgo energy use. Google says it’s faster and more cost-effective to buy electricity from other electricity users rather than build an actual, honest-to-God power plant. 
The experts at NGI (
AI (artificial intelligence) data centers are vital to both the natural gas industry and the national security of the United States. Yet, many Americans (a majority?) have turned against data centers. Sure, sometimes the builders of these facilities have shot themselves in the foot by not being more transparent and attempting to build facilities too close to population centers. Our thesis is that reasonable people can compromise, address issues, and move forward with data centers. But that’s not happening. Why? 
Although there are legitimate concerns over data centers locating in populated communities (noise, water use, etc.), make no mistake: The anti-data center movement is nothing more than the anti-fracking movement in new clothes (see 
In mid-April, MDN brought you the great news that a major lawsuit had been filed against New York State alleging a “taking” of private property by the state via the state ban on fracking (see 
The Democrats who rule New York State with an iron fist recently signed a new budget bill into law (57 days late). In New York, the sleazy politicians who run the state slip all sorts of legislation into bills unrelated to the budget. They operate on the “throw as much crap against the wall as you can to see what sticks” theory of legislating. This year, the legislature and governor finally had to face the reality that the state’s 2019 Climate Leadership and Community Protection Act (CLCPA) was not feasible. So they changed it, much to the distress of the radical environmental left. As part of the budget bill, the Dems lightened up on requirements in the CLCPA. The end result is that natural gas infrastructure, including new gas pipelines, is once again on the agenda.