Update on PA Severance Tax Bill – More Progress, House Leaves Town
We have a brief respite, but are still in a dangerous position. The Pennsylvania House continued to debate and vote on amendments to House Bill (HB) 1401 yesterday–the Frankenstein bill introduced by RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) that would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). Debate on the bill began Monday, making quick progress (see Disastrous PA Severance Tax Bill Debated in House, Makes Progress). More progress was made yesterday. Some amendments to the bill passed, some failed–and then the House “abruptly adjourned” late last night without voting on the full bill itself. They got outta Dodge. The House returns to Harrisburg for more voting on Dec. 4th, so we have nearly two weeks of a reprieve before the battle begins again. It is vital this bill NOT PASS–for the future of Marcellus drilling in PA. Below is a list of the amendments that have, so far, passed and not passed, and how they tweak and change the overall Marcellus-killing HB 1401 bill…
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This is getting pretty old, fast. Two weeks ago MDN told you about a lawsuit that finally got it’s day in court–a case brought by a Wayne County, PA landowner against the Delaware River Basin Commission (DRBC) over its ongoing, 10+ year ban on fracking in the Delaware River Basin (see 
Since Aubrey McClendon and Chesapeake Energy first burst on the scene to announce the Utica Shale is “the best thing to hit the state of Ohio economically since maybe the plow” and Chesapeake leased and drilled in Carroll County, OH, Carroll has been the single most Utica drilled county in the state. Activity in Carroll remains strong, but as the play has matured and drillers have experimented in other counties, the “sweet spot” for Utica drilling moved south, to places like Belmont, Monroe and Guernsey counties. The most productive Utica wells drilled are in those southern counties. So it was not all that big a surprise, but certainly noteworthy, to read that Belmont County has now passed Carroll for total number of permits issued to drill Utica wells. A “changing of the guard.” We hasten to add Carroll still has more drilled and producing Utica wells than Belmont–at this point in time. At some point that dynamic will change. Below we have the latest numbers, and a special sneak preview of MDN’s forthcoming Marcellus & Utica Shale Almanac showing a breakdown of numbers for Carroll County, still (for now) the most drilled Utica Shale county in the Buckeye State…
The Ohio Oil and Gas Association (OOGA) and Energy In Depth (EID) Ohio recently published a new report that shows Utica drillers have spent more than $300 million in eight Ohio counties from 2011 until earlier this year improving and fixing 630 miles of Ohio’s roadways. The study, titled “Ohio’s Oil & Gas Industry Road Improvement Payments” (full copy below) takes a close look at Road Usage Maintenance Agreements (RUMAs) in eight counties. You read that right. The O&G industry has spent over $300 million in eight counties over the past seven years. That’s $300 million in PRIVATE (not government-confiscated-via-taxes) money to fix up roads. Those living in eastern Ohio are lucky dogs…
Basin Energy, which acts as a holding company to invest in (and run) other companies located in the Marcellus/Utica, is based in Bridgeport (Harrison County), WV. Basin’s first acquisition was ProActive Services, an operator of natural gas pipeline compressor stations and other related oilfield services. In September 2015, Basin closed a deal on their second subsidiary–the Jane Lew (Lewis County), WV-based Starett’s Well Service, a specialty roustabout services firm, focused on well site and midstream natural gas infrastructure in the Marcellus and Utica Shale regions (see 
Earlier this year Xpress Natural Gas (XNG) spent $18.6 million to build a “virtual pipeline” facility in Susquehanna County, PA that employs ~90 people and loads up to 100 compressed natural gas (CNG) tanker trucks each day with PA Marcellus gas, for deliveries to customers across the Northeast and Mid-Atlantic states (see 
A class action lawsuit was filed last week by 12 New England power customers who claim that two New England utility companies–Eversource and Avangrid–intentionally manipulated the flow of gas along the Algonquin natural gas pipeline by placing and later withdrawing orders, in order to spike the cost of gas which then spiked the cost of electricity generated by the resulting higher cost gas. It is a convoluted, cockamamie charge first brought by the radical antis at the Environmental Defense Fund (see 
In a companion story today, MDN tells you about a frivolous lawsuit that claims two New England utilities have been manipulating gas flows along the Algonquin Pipeline, by “constraining” those flows (see New England Lawsuit Claims Utilities “Constrained” NatGas Pipeline). It’s bupkis. That is, the utilities are not the ones constraining pipelines in New England. What is constraining New England pipelines is high demand for natural gas–and NOT ENOUGH PIPELINES to flow it–both for end users like residences and business, and major users like electric generating plants. So says the head of the electric grid in New England, Gordon van Welie. Speaking at a recent energy conference in Rhode Island, van Welie said, “regional pipelines were built for gas distribution companies’ heating demands, not for power generation. [van Welie] says they’re at, or near capacity, in winter and generators have to use more expensive fuels, including oil and liquefied natural gas.” van Welie also said, “The gas problem [lack of it] is going to live with us for a long time” because more than 50% of New England’s electric power generation comes from gas-fired plants. What about Big Green favorites, wind and solar? van Welie rained on Big Green’s parade, saying wind and solar can’t replace gas because they’re “intermittent sources of power.” Whoops! Big Green’s bubble just got burst by reality and good old common sense. Here’s more about the meeting, and van Welie’s remarks…
Marcellus Drilling News typically takes Thanksgiving and the day after off to rest and relax with family. We will be sure to keep an eye on the news and if there is anything earth-shattering, we will bring you that news. Otherwise, we’ll see you next Monday. Have a great Thanksgiving! – Jim Willis, Editor
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Man accused of stealing from shale biz in OH; Univ. at Buffalo invests in fracking, ticks off green snowflakes; Cornell prof wants NY to go climate berserk with new regs; TransCanada still investigating Keystone leak; growing gas glut threatens W TX oil boom; OPEC-U.S. shale showdown continues; Trump & antis both want court to leave BLM frack ruling intact; natgas inventories down; Poland signs deal to buy US LNG; Norway isn’t turn away from fossil fuels; and more!