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Is PA Gov Wolf Targeting the Marcellus Industry for Extinction?

Daniel Markind
Daniel Markind

Is Pennsylvania Gov. Tom Wolf actually *trying* to kill the Marcellus Shale industry? It’s not our question, but a serious question being asked by Dan Markind, a lawyer and partner with Weir & Partners in Philadelphia. In today’s guest post, Dan recounts Wolf’s actions during his first ten months in office and asks a serious question about what Wolf is trying to do to the Marcellus industry. Actions speak louder than words. [Incidentally, no one else seems to recall, but we do, that California billionaire and environmental activist Tom Steyer gave Wolf something like $14 million for his campaign (see CA Anti-Driller Tom Steyer Purchasing Tom Wolf PA Governorship). Perhaps Wolf is paying off his campaign debt to Steyer by targeting the Marcellus for extinction?]

Dan also updates us on the situation with the Constitution Pipeline–delayed by New York’s Dept. of Environmental Conservation; the Obama Administration’s decision to oppose ending a ban on crude oil exports; and a huge oil find in Israel, or is it really in Syria?…
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What Have We Learned from EPA’s Gold King Mine Disaster?

guest postOn January 9, 2014, a Freedom Industries facility next to the Elk River leaked ~10,000 gallons of crude 4-methylcyclohexanemethanol (MCHM) used in coal mining into the river, which is a tributary to the Kanawha River that runs through Charleston, WV. The results of that leak were dramatic. Some 300,000 residents from nine counties in the Charleston metropolitan area were without access to potable water for five days. Several Freedom Industries officials are now in jail and the company went bankrupt because of that single accident. Contrast coverage of that accident with another accident–caused by the federal Environmental Protection Agency (EPA) at the Gold King Mine in Colorado. EPA personnel were fiddling around “testing” at a gold mine wastewater storage impoundment and accidentally unplugged it, dumping 3 million gallons of some of the nastiest wastewater you can imagine–with lead, arsenic and other heavy metals–into the Animas River north of Silverton, CO (see EPA Causes Environmental Disaster in CO; Connection to Marcellus?). The Gold King Mine spill turned the Animas “an opaque orange color reminiscent of boxed mac and cheese.” Question: Should EPA Administrator Gina McCarthy be locked up and the EPA dismantled based on a single accident? Is there a double standard when it comes to environmental reporting?

Stephen Heins, an energy and regulatory consultant for a Wall Street firm, and former vice president of communication for Orion Energy Systems, is an occasional guest blogger here on MDN. Steve has penned an excellent article (below) that takes a look at EPA’s response to the Gold King Mine disaster. Steve says he’s not second-guessing the accident itself–it was an accident (they do happen). He’s interested in how the EPA responded, what we can learn from it, and whether or not a double standard exists when it comes to environmental reporting about government-caused accidents vs. those caused by private companies…
Read More “What Have We Learned from EPA’s Gold King Mine Disaster?”

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Ohio and 15 Other States Ask EPA to Delay Clean Power Plan

guest postMDN is pleased to add another occasional voice to Marcellus Drilling News. Stephen Heins is an energy and regulatory consultant for a Wall Street firm, and the former vice president of communication for Orion Energy Systems. Steve has penned an article (below) pointing out five critical problems with the recently announced EPA Clean Power Plan. Steve makes a strong case that the EPA needs to hold off on implementing this draconian new plan until the Supreme Court hears a case brought against the plan by 16 states. Pull up a chair and enjoy Steve’s expert insights…
Read More “Ohio and 15 Other States Ask EPA to Delay Clean Power Plan”

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The Rotten Core of Obama’s Clean Power Plan: Global Warming Myth

The uber-arrogant Barack H. Obama and his bullying Environmental Protection Agency have given us an untenable Clean Power Plan that a) guts the rest of the coal industry, and b) sets its sights on gutting the natural gas industry, for power generation, too (see Obama Stabs Natural Gas Electric Plants in Clean Power Plan). The core tenant/religious belief perpetrated by Obama is the myth that mankind’s burning of fossil fuels, with an increase in carbon dioxide, is leading to a catastrophic warming of the earth’s atmosphere. There is no credible scientific proof for such a theory–it’s only a theory. But that doesn’t stop Obama and his minions from using it as an excuse to shut down legal and legitimate businesses that use fossil fuels to generate electricity. Since global warming jiggery-pokery is central to Obama’s Clean Power Plan, we thought it would be instructive to show you the headlines from six years, in the run-up to the United Nations Climate Change Conference in Copenhagen. The headlines then, as now, blare that we have “just five years left” before it’s “too late”. We’re now six years later without the beseeched onerous policies and guess what: We’re no worse off today than we were then. The planet didn’t get warmer (and hasn’t for 18 years now). In fact, the global warming meme has been circulating for 100 years (see Global Warming Meme has Been Around Nearly 100 Years). Today we bring you a guest blogger that illustrates the falseness of global warmers’ claims by comparing their predictions from six years ago (that didn’t come true) with their predictions now…
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Guest Post: The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal

MDN friend Charlie Schliebs, managing director of Stone Pier Capital Advisors in Pittsburgh, sent along a copy of his firm’s latest newsletter yesterday. In it, Charlie has penned a superb article about the PA Gov. Tom Wolf administration’s current disaster with respect to the state budget (and Wolf’s demand for a high severance tax). As MDN reported yesterday, Wolf did something no governor has done for 40 years–he vetoed the entire budget (see PA’s Partisan Gov Wolf Vetoes No-Severance-Tax State Budget). Let’s put Wolf’s veto in perspective. He turned down, wholesale, a balanced budget that raises education funding (for the chil’ren) all while holding the line on tax increases. Instead, Wolf chose to shut down the PA state government. Why? Because he wants a nosebleed high tax on Marcellus Shale drillers to transfer their hard-earned money over to teachers’ unions. It’s sick. Charlie is more of a diplomat than we are and uses nicer words, but make no mistake, he has an iron fist in his velvet editorial glove when it comes to “The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal”…
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Opposing Viewpoint on Gulfport Water Lawsuit Against Barnesville

MDN reader Eric Fenster, who lives in the Piedmont Lake area of Ohio, wrote to take issue with MDN’s “take” on the lawsuit brought by Gulfport Energy against Barnesville for breach of contract in selling them water for use in drilling and fracking (see Barnesville Officials “Didn’t Think” When Signing Gulfport Water Deal). Mr. Fenster believes MDN has it mostly wrong and that the Gulfport lawsuit is frivolous and should be dismissed. He outlines his thinking in the following guest post…
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Guest Post: The Self Delusion of Anti-Pipeliners in New England

Yesterday MDN ran a story from NGI’s Daily Gas Price Index that delves into the motivation behind the intense opposition to pipeline projects in the northeast (see Why Such Intense Opposition to Pipelines in the Northeast?). Rick Groll, a geologist and industrial seismologist living and working in the Boston area, has some of his own observations on the motives of his fellow New Englanders. What makes these anti-pipeliners tick? Rick offers us some insight in this guest post…
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Guest Viewpoint: Best to Lease ALL Rock Layers at One Time

Last week MDN told you about possibility that a rock layer some 20,000 feet below the surface may one day be an important player in natural gas and oil for the northeast (see Trenton-Black River: New Natgas Rock Layer in Your Future?). As part of that story, we wrote the following: “Landowners listen up. When you lease, ALWAYS specify the layer(s) in the lease that you will allow an energy company to drill. That way, in future years when yet other layers are “discovered” to have natural gas or oil deposits, you can re-lease for the new layer. Energy companies will understandably want to negotiate a lease for all layers. Landowners (and their lawyers) need to watch for and construct leases that favor the landowner. A word to the wise…” An MDN subscriber wrote us to take issue with that statement, to point out potential weaknesses in our argument. We are happy (with permission) to bring you the following guest post from Paul David Burke, VP & General Counsel for Huntley & Huntley, Inc…
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Guest Article: Decline Curves Demystified – Chris Acker

Chris AckerAck is back! MDN is pleased to bring you another guest post from our very good friend Chris Acker. Chris is a geological engineer with an MBA. He grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos (see www.PianoGrands.com). A few years ago, it was established that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He is now happily engaged once again in energy economics, with emphasis, naturally, on gas. In this post Chris gives us the lowdown on what every landowner with a well sooner or later wants to know: How fast will production from my well peter out? It’s called a “decline curve” and Chris gives us a great understanding of the fundamentals…
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Guest Viewpoint – Solar Guy Knocks Chesapeake Energy

Last week MDN was contacted by Robert Magyar, Managing Director at Navitus Strategies, to offer a guest viewpoint to run on MDN. We occasionally post guest articles and agreed to post Bob’s article (below). His article takes a look at Chesapeake Energy and offers the view that although Chesapeake has laid off more than a thousand people and sold off (and continues to sell off) key assets, the company is still financially unhealthy. Bob offers his reasons why (mostly from hedging agreements). He also highlights the recent and ongoing problems Chessy has with royalty payments in Pennsylvania.

In our email correspondence Bob says, “we need natural gas” and that he is not anti-drilling by any stretch. However, we would note for the record that his company, Navitus, works on alternative energy projects–primarily solar–and so it seems in his own best interests to knock the shale industry (and one of it’s most prominent players) around just a bit. With that as a preface, here is Bob’s article on Chessy “continuing to grind down,” which first appeared on the freelance article website Examiner.com:
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Guest Post: Pennsylvania Drilling Moratorium – Good or Bad?

Chris AckerBefore Pennsylvanians head to the polls in November to elect a new governor and new legislators, they may want to consider the consequences of installing Democrats to re-assume power in the state. Specifically, Democrats have vowed to slap an ongoing moratorium–essentially a ban–on Marcellus Shale drilling should they regain control. MDN has been one of the few places in the media to even cover this story, and we’ve called it just what it is: economic insanity (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide).

MDN friend and contributor Chris Acker, a Pennsylvania property owner and geological engineer with an MBA, does a deep dive into the issue to explore what would happen should PA slap a moratorium on new shale drilling. Hint: It’s like experiencing someone’s worst nightmare…
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NY’s Albany Anti-Frack Protest – Made Possible by Natural Gas

Not only are the crazies marching in Maryland (see today’s story Maryland Anti-Fracking “Madness” Continues – Crazies on the March), they’re also about to descend on Albany, NY. MDN friend and occasional guest blogger Vic Furman, a retired IBMer and one of the leaders of the Joint Landowners Coalition of New York, provided the article below pointing out the hypocrisy of those who oppose shale drilling. Vic says that in nine days when anti-drilling protesters arrive in Albany (many from out of state), they will do so because natural gas and oil from shale drilling made it possible for them to be there.

Take time to read Vic’s post and consider the salient points he makes:
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Marcellus in Perspective – 5th Largest Natgas Producing “Country”

Last week MDN told you about the U.S. Energy Information Administration’s finding that Marcellus Shale production had passed 12 billion cubic per day (Bcf/d), a full two years ahead of predictions made by Penn State’s Terry Engelder (see New EIA Drilling Productivity Report: Marcellus Passes 12 Bcf/d!). MDN friend and prolific story idea/link contributor Chris Acker, a geological engineer with an MBA who grew up in the oil fields of Venezuela where his dad was a petroleum engineer, offers the following helpful perspective on just how much 12 Bcf/d really is…
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What if PA Dems Win the Next Election and Ban Drilling Statewide?

MDN reader, friend and contributor Chris Acker provides the insightful commentary below in response to (and building on) our article of a few days ago, titled: 18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium.

Chris delves into the economic apocalypse that would happen should PA Democrats gain power again in the next election and fulfill their promise of enacting a statewide moratorium/ban on drilling. It is, as Chris points out, a true nightmare scenario:
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Guest Post: Susquehanna County’s Astonishing Resource Potential

Chris Acker The following article was written by MDN friend and prolific contributor of links and story ideas, Chris Acker. Chris splits his time between Montrose, PA (in Susquehanna County) and Savannah, GA. Here is his biography from the Seeking Alpha website:

Christopher Acker, Geological Engineer with an MBA, grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos. See www.PianoGrands.com. A few years ago, it was established that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He is now happily engaged once again in energy economics, with emphasis, naturally, on gas.

Here is Chris’ thoroughly researched, extensively footnoted, superb analysis of Susquehanna County’s potential Marcellus Shale natural gas yield…

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Guest Post: Corporate Hubris Humbles Chesapeake – Cabot Soars Sure & Steady

The following guest post is from MDN subscriber and friend, Chris Acker. Every day Chris sends MDN editor Jim Willis a list of items he notices in the news that may be of interest to MDN readers, and Jim includes many of them. The MDN service is made better because of readers like Chris—and we publicly thank him.

Chris owns property in Susquehanna County, PA, which is leased with Cabot Oil & Gas. He looks forward to the day when his property is drilled by Cabot. In the meantime, Chris watches Cabot (and other drillers) and keeps tabs on their operational and financial health. Chris points out in his post below that for the first time in many years, Cabot Oil & Gas’ market capitalization has exceeded that of Chesapeake Energy. Chesapeake is the country’s second largest natural gas driller with revenues many times that of Cabot—so this is a true milestone.

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