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IPAA Fracking Update: Legislation, Regulation, Litigation
November 4, 2014November 4, 2014

What’s the latest legislative, regulatory and litigation developments with respect to hydraulic fracturing in the Marcellus and Utica region? Thanks to the Independent Petroleum Association of America (IPAA) and their partnership with PIRA Energy Group, a consulting firm that specializes in U.S. and international energy markets research and intelligence, we have an update. Recently the IPAA sent around the quarterly Fracking Policy Monitor. In this latest issue of the Monitor (full copy embedded below) we have news from PA, OH and WV, where drilling happens now, and even news from NY, where drilling doesn’t happen now (thanks to being blocked by Gov. Andrew Cuomo)…
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Chautauqua County | Economic Impact | EmKey Gathering | Energy Companies | Energy Services | Industrywide Issues | Litigation | New York | Norse Energy | Pipelines | Taxation

Cuomo Dithers and Towns Like Gerry, NY Pay the Bill
November 3, 2014November 3, 2014

Not only has NY Gov. Andrew Cuomo’s dithering and refusal to make a decision on whether or not to allow horizontal hydraulic fracturing in the state materially harmed tens of thousands of landowners and farmers in the state (not to mention all of those who would have had high-paying jobs in the industry), it’s also harmed taxpayers in places like Gerry (Chautauqua County), NY. Because Cuomo dithered and Norse Energy went bankrupt, a division of Norse, Norse Pipeline, also went bankrupt because the gas wasn’t available to run through their pipeline in places like Gerry. That pipeline was sold to Emkey and a court has just re-adjusted the assessment of that pipeline’s value–from $2,616,444 to $320,439, causing Gerry to lose $2,305,368 of its tax base. Not only that…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Delaware Riverkeeper Sues to Stop Fracking Under PA State Land
October 31, 2014October 31, 2014

The litigious (and arrogant) Maya van Rossum, aka THE Delaware Riverkeeper, is hoping that lightening, in the form of a lawsuit, will strike twice. The Delaware Riverkeeper was party to the tragedy that overturned a large portion of the 2012 Act 13 drilling law (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The decision made by the PA Supreme Court was a bad one, based on brand new so-called environmental rights that didn’t previously exist. It was also based on the false premise that oil and shale drilling are inherently harmful to the environment (see Industry Vet Points Out Error in PA Supreme Court Act 13 Ruling). We have more than 60 years of active drilling/evidence that says the practice is safe. But we digress. PA Gov. Tom Corbett plans to expand a program already underway in the state to allow a teeny tiny bit more drilling under PA’s state forests. Ms. Rossum is determined to stop it…
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Industrywide Issues | Litigation | Pennsylvania | Sand/Proppant | Wyoming County (PA)

NEPA Town Residents Resist Frack Sand Transfer Station
October 22, 2014December 4, 2014

Hi-Crush Partners, one of three major frack sand companies in the U.S., purchased PA-based D&I Silica for $125 million in May 2013. D&I is planning to build a frack sand transfer station in Tunkhannock (Wyoming County), PA. Except some (many?) residents who live in the area, along with the Wyoming County Planning Commission, don’t want it. All permits are in hand except one–from the Planning Commission. Hi-Crush has sued and the matter sits in court. However, there was a colorful appearance by one local anti-driller who dressed up in a canary outfit to attend the Wyoming County Commissioners meeting last night discussing the proposed transfer station…
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY | Tompkins County

NY High Court Rebuffs Norse Request to Re-hear Town Ban Case
October 20, 2014October 20, 2014

We won’t bother to chronicle, once again, the long fight in New York State over the right of a town board with 3-5 members deciding that every resident in a township will lose the right to use their property the way they want to (even though property ownership is sacrosanct under the U.S. Constitution). In the People’s Republic of New York, the mob rules. The rule of law is out the window. And so, a few New York high court judges who want to retain their posts under Gov. Andrew Cuomo, decided nobody really reads the Constitution anymore anyway–and that local town boards (not individual landowners) will now decide whether or not shale drilling will take place (see Shale Drilling in NY is Over – High Court Upholds Town Bans). One of the litigants in the case was Norse Energy, forced into bankruptcy by New York’s now 6+ year moratorium on fracking. Norse took over leases from Anschutz Exploration and sued the Town of Dryden, NY over their idiotic frack ban. Based on a recent Colorado case that is similar (and found against so-called “home rule” by towns), Norse asked New York’s highest court to re-hear the case (see Norse Energy Appeals Town Ban Case Back to NY High Court). The ~~crooked~~ judges said “nope”…
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Anti-Drilling/Fossil Fuel | Chautauqua County | Electrical Generation | Industrywide Issues | Litigation | New York | Regulation

Dunkirk NY Electric Plant Natgas Conversion Challenged in Lawsuit
October 20, 2014October 20, 2014

There is precisely one (and only one) decision that New York Gov. Andrew Cuomo has made with regard to clean-burning natural gas that we know of. Last December Gov. Cuomo trudged through three feet of snow in Dunkirk, NY to announce a deal had been struck to convert the local coal-burning electrical generating plant to burn natural gas instead (see Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas). If the plant is not allowed to convert, it will close and 435 megawatts of electricity will disappear, and along with it, 40% of the taxes paid to local governments and the local school district will evaporate too. You might think environmentalists would be happy to have the plant convert from “dirty” coal to clean-burning natural gas. How have they responded? By filing lawsuits against the conversion…
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Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Regulation | Washington County

Civil War Between Cecil Supervisors/Zoning Board Over Compressor
October 20, 2014October 20, 2014

As MDN reported in early October, MarkWest Energy finally (after four years) won the right to build a compressor station in Cecil (Washington County), PA (see MarkWest Wins Court Case to Build Compressor Station in Cecil, PA). The compressor station will be built on property owned by Range Resources. It’s Range’s gas that will flow through that station on its way to market. The Cecil Board of Supervisors voted to not challenge a Commonwealth Court (a lower court) decision that said the zoning board erred when denying MarkWest a permit to build the compressor station. However, the zoning board itself can still appeal the decision (see Cecil Supervisors Vote to NOT Appeal MarkWest Compressor Decision). It appears to us like a civil war has erupted between the Cecil board of supervisors and the zoning board…
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Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Rex Energy

Martian Chronicles: Delaware River Basin Shifts to Western PA?
October 14, 2014October 14, 2014

The Martians are getting an assist from THE Delaware Riverkeeper herself (Maya van Rossum). Get this: The Delaware Riverkeeper, along with another anti-drilling group called The Clean Air Council (both based near Philadelphia), have filed an appeal with Adams Township (Butler County), PA over the town’s decision to grant Rex Energy permits to drill gas wells 3/4 of a mile away from the Mars public school. In June, Adams Township supervisors voted 4-1 to allow drilling to commence, subject to getting permits from the Dept. of Environmental Protection (see Adams Twp, PA Votes to NOT Block Drilling “Near” Mars School). Just a month ago, Rex got the permits from the DEP to begin drilling (see Rex Gets Permits to Drill Near Martian School, Antis Apoplectic). Some Martian parents objected, and found a sympathetic wallet all the way across the state in Philadelphia with van Rossum. What does Butler County, on the western edge of PA have to do with van Rossum’s Delaware River Basin group, which is focused exclusively on the eastern edge of PA? NOTHING. Except for her personal hatred of fossil fuels and willingness to spend her own (and other people’s) money to fight shale drilling wherever it happens…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Susquehanna County

Important Landowner/Driller Case Heads to PA Supreme Court
October 13, 2014October 13, 2014

A Pennsylvania landowner signed a lease with Cabot Oil & Gas in 2007. Part of the way through the lease, before Cabot initiated drilling, the landowner sued Cabot to dissolve the lease, citing certain reasons that they believe justified that action. The case went to court and the court eventually threw out the landowner’s case, meaning the lease is still in effect. Cabot then filed a counterclaim to have the lease term extended, something called an “equitable extension of lease terms.” In other words, once sued, the lease term should go on pause, and because they won, Cabot should then be able to un-pause the lease term and continue (which would otherwise have expired due to the long time it takes for court cases to play out). The court did not grant Cabot’s request and the case has now been appealed all the way to the PA Supreme Court. The decision will set an important precedent for both landowners and drillers…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Minuteman Environmental Services | Northumberland County | Pennsylvania

Minuteman Sues AG Kane’s Office for $20M + Punitive Damages
October 10, 2014October 10, 2014

What a sad story. In May 2013, Pennsylvania’s anti-drilling Attorney General, Kathleen Kane, had the offices of Minuteman Environmental Services in Milton (Northumberland County) raided using the FBI, IRS and the PA Dept. of Environmental Protection (DEP) agents, in addition to agents from the AG’s office (see Shale Environmental Services Company Raided by PA AG’s Office). After conducting a witch hunt of Minuteman for 13 months following that raid, Kane finally charged them (see PA’s Anti-Drilling AG Charges Minuteman with Enviro Crimes). During that 13 months and following, Kane’s office terrorized the family and drove the company–that employed over 100 people with $49 million in revenues–into bankruptcy (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Minuteman’s owners threatened to sue the AG’s office and they followed through. We have an exclusive copy of the lawsuit…
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Chester County | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline
October 9, 2014October 9, 2014

Even though Sunoco Logistics’ Mariner East pipeline is already buried in the ground and has been for decades, some communities along the path of the pipeline don’t want Sunoco to repurpose the pipeline for use to flow natural gas liquids (NGLs) like ethane and propane. In order to repurpose the pipeline, Sunoco needs to build 18 pump stations and 17 valve control stations in 31 municipalities along its 299-mile route. Communities like West Goshen (Chester County, near Philadelphia) are fighting it because they don’t want such a station built in their township. Sunoco recently won a very important decision by the state Public Utility Commission (PUC) that said Mariner East always has been and still remains a “public utility” under PA law, which exempts them from local zoning ordinances (see Major Milestone: PA PUC Rules Mariner East IS a Public Utility). West Goshen isn’t happy with that so they’re appealing the decision in PA Commonwealth Court, asking the court to stop Sunoco from beginning construction before the appeal process plays out. West Goshen is holding the gun of the courts to the head of Sunoco and will intentionally try to play this out as long as they can (death by a thousand cuts)…
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Accidents | Energy Companies | EQT Corp | Industrywide Issues | Litigation | Pennsylvania | Regulation | Tioga County (PA) | Wastewater

PA DEP Levies Biggest Fine Ever, $4.5M Against EQT
October 8, 2014October 8, 2014

We’ve got some bad blood happening between EQT–a big Marcellus driller headquartered in Pittsburgh, PA–and the PA Dept. of Environmental Protection (DEP). The DEP has just filed a lawsuit against EQT to force the company to cough up a new record–$4.53 million in fines–for a leaky wastewater impoundment in Tioga County, PA. The fine comes a week after the anti-drilling PA Attorney General, Kathleen Kane, once again abused her office’s powers by filing criminal charges against EQT (see today’s companion story). The DEP says EQT filed for and received permission to build a freshwater impoundment at that location in 2012, but after the impoudment was built, they decided to change and use it for frack wastewater. Problem is, with a wastewater impoundment you need monitoring wells drilled around the impoundment and extra protections that were lacking because it was supposed to be used for freshwater only. EQT then built a second impoundment next to it for wastewater and did install monitoring wells, figuring those monitoring wells would cover both impoundments. The first impoundment leaked and, according to the DEP, EQT just doesn’t get how serious the problems were/are that resulted, and so they’ve slapped them with their biggest single fine ever. EQT is already fighting back both legally and with their own press release…
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Accidents | Energy Companies | EQT Corp | Industrywide Issues | Litigation | Pennsylvania | Regulation | Tioga County (PA) | Wastewater

PA Attorney Gen. Kane Abuses Office Again, Arrest Warrant for EQT
October 8, 2014October 8, 2014

Last year Pennsylvania’s anti-drilling Attorney General, Kathleen Kane, abused her office and filed criminal charges against XTO Energy over a spill of fracking wastewater at a site in Lycoming County, PA that happened more than three years ago–long before she took office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). In a Britney Spears “Oops!…I Did It Again” moment, Kane has filed a second case of criminal charges against a driller over an accident. Last week Kane filed charges against EQT over a leaky wastewater impoundment in Tioga County, PA. Yesterday the PA Dept. of Environmental Protection fined EQT $4.53 million–it’s highest ever fine–over the same incident (see today’s lead story). Kane is claiming that EQT polluted and disturbed PA waterways and committed misdemeanor crimes in the process…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Washington County

Cecil Supervisors Vote to NOT Appeal MarkWest Compressor Decision
October 7, 2014October 7, 2014

Last week ago MDN told you about the victory for MarkWest Energy in Cecil Township (Washington County), PA. A Commonwealth Court judge has ruled Cecil must and will allow MarkWest to build a compressor station in an area clearly zoned for it under Cecil’s own rules–a station they’ve been trying to build since 2010 (see MarkWest Wins Court Case to Build Compressor Station in Cecil, PA). As with all things legal, the question then became–will Cecil appeal the ruling to a higher court in hopes of further delaying the inevitable? That question was partially answered last night. Cecil’s board of supervisors voted 3-2 against appealing the decision–meaning the town must now, as the judge ordered, grant a permit to MarkWest within 45 days (now about 38 days) to build the compressor station. However, there is one more storm cloud ahead for MarkWest…
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Accidents | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County | Wastewater

Hearing on Range Yeager Impoundment/Water Contamination Continues
October 6, 2014October 6, 2014

More from the ongoing hearing into the Pennsylvania Dept. of Environmental Protection’s actions, or lack of actions, in determining a private water well 2,800 feel (half a mile) downhill from a Range Resources wastewater impoundment that was found to be leaky was fouled by that impoundment. We previously explained that in order for a lawsuit by the landowner Loren Kiskadden against Range for “contaminating” his water well to be valid, the DEP must reverse a previous finding that Range’s Yeager impoundment did not foul his well (see Did DEP Mishandle Range Wastewater Impoundment Investigation?). So one of the DEP’s investigators has been on the hot seat explaining his previous findings and reports…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Major Milestone: PA PUC Rules Mariner East IS a Public Utility
October 3, 2014October 3, 2014

Sunoco Logistics is not home free yet–but almost. As MDN readers will know, for some time anti-drillers have attempted to prevent Sunoco Logistics from repurposing their 400+ mile Mariner East pipeline that stretches from western PA to Philadelphia to begin flowing natural gas liquids–ethane and propane. The legal tussle has been over whether or not the pipeline is a “public utility” with the right of eminent domain and the right to be exempt from local zoning ordinances. Bear in mind the Mariner East pipeline has been in the ground for decades, always considered a public utility in years gone by. Local municipalities are now seeking to stop a string of 18 pump and 17 value stations (in 31 locations) that will be needed along the pipeline’s route in order to flow the ethane and propane. So the municipalities launched a legal fight to remove Mariner East’s classification as a public utility. Yesterday the Commissioners of the PA Public Utility Commission put that issue to rest once and for all…
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