Industrywide Issues

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    Ithaca Power Plant Tries Once Again to Convert from Coal to Gas

    In 2013 so-called environmentalists protested, agitated and lobbied to prevent an electrical generating power plant in Tompkins County, near Ithaca, NY, to switch from burning coal to burning natural gas–because they’re afraid it will mean more fracking (see NY Eco Group Protest to Stop Plant Converting from Coal to NatGas). The owner of the plant, Cayuga Operating Co., ended up selling it two years ago. The new owner, Riesling Power, tried to continue to get approval for converting the coal-fired plant to burn natural gas (not only cleaner, but also cheaper). Ultimately, the Cuomo-controlled Public Service Commission (PSC) turned down the request to convert. So the new owner kept operating it as a coal-fired plant–belching out far more pollution than a natgas plant would. Congratulations idiot fractivists (including obtuse Assemblywoman Barbara Lifton, who wanted the plant closed). They screwed themselves and all of their neighbors too. But what’s this? Riesling Power has just filed another application to close the coal-fired plant, and reopen it as a gas-fired plant. But instead of using pipelines to feed the gas-fired plant, they will use compressed natural gas (CNG), trucked in. Which has set off the local crazies once again, spewing fossil fuel hatred and talking about “bomb trucks” visiting the area. Incredibly, the antis would rather keep a nasty coal-fired plant operating than switch to natural gas. Clinically insane…
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    Rhode Island Gas-Fired Plant Making Money – Before It’s Built!

    At a big ceremony in 2015, none other than Rhode Island Gov. Gina Raimondo joined the CEO of Invenergy to announce the Clear River Energy Center–a 900-1,000 megawatt electric generating plant that runs on natural gas (see New NatGas Powered Electric Plant Coming to…Rhode Island?!). A new gas-fired plant planned for the socialist paradise of Rhode Island, home to old money and people who oppose change of any kind. Who woulda thunk? The new plant will lower RI residents’ electric bills by a collective $280 million and replace aging coal and oil power plants–cleaning the air in the process. With the jobs created, the investment in the facility, and lower electric rates, it’s calculated this single plant will have a $1.3 billion impact on the economy of RI. The plan was to begin construction in summer 2016 and have the plant up and running by 2019. What’s happened since the initial announcement? A lot of bureaucratic bull. The project is under review now and a final decision by the Rhode Island Public Utilities Commission will not happen until January of next year. In the meantime, the plant is making money, even though it’s not yet built! How? By selling its contracts to provide electricity. The plant won’t be running next year, so Invenergy, the builder, has sold the right to provide electricity to the grid (for a time) to different plant…
    Read More “Rhode Island Gas-Fired Plant Making Money – Before It’s Built!”

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    PA Gov. Wolf Signs On-Time Budget with No Severance Tax

    There is nothing “bipartisan” about Tom Wolf, Governor of Pennsylvania. He’s a hard-left partisan all the way. Yet this year, for the first time since taking office, he signed a “bipartisan” budget on time–before the June 30 deadline. Wolf practically genuflected before the Republicans who control both the House and Senate in PA. This is the first budget Wolf has signed at all. The previous three annual budgets adopted during Wolf’s tenure were done so without his signature. So why did Wolf practically fall over himself to sign a budget that does NOT include a new severance tax, as he has requested each year since taking office? Simple: He’s running for reelection and wants to appear as if he’s actually governing. He’s attempting to smear a little lipstick on the pig of his awful tenure in office. Question is, will it work? Do people have the attention spans of gnats? Or will they remember the pain and suffering he inflicted by dragging out previous budgets for months? Pennsylvanians should understand that Wolf’s nicey-nice with the budget this year will completely evaporate next year (if he’s reelected). Back will be the hard-left partisan who lives under the lipstick…
    Read More “PA Gov. Wolf Signs On-Time Budget with No Severance Tax”

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    Fake Duke Study Says Fracking Will Make you Fat

    Yet another wild, totally false “study” has been published by Duke University and University of Missouri researchers that finds when you pump rats full of chemicals, some of which may (or may not) be used in fracking, dosing the rats at many multiples of times more that any human would ever be exposed to, it makes the rats gain weight. And voila, a new meme in mainstream faux media is born: fracking makes you fat. How do “researchers” actually get jobs after publishing this kind of garbage? Who would hire them? Perhaps the Heniz Endowments or William Penn Foundation. This is the same “research” team that tried to connect shale drilling to impaired immune systems, low sperm counts, ovarian follicle problems and pre-cancerous mammary gland lesions, in previous fictional studies. More of the same with this study…
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    PA Impact Fee/Tax Hauls in $210M in 2017 – Third Highest Ever

    Click for larger version

    Each June, the Pennsylvania Public Utility Commission (PUC), the agency charged with keeping tabs on impact fee revenue from shale drillers (PA’s version of a severance tax) releases the final numbers of impact fee revenues and disbursements. Yesterday was the appointed day for 2017. The PUC reports impact fees on natural gas producers in 2017 totaled $209,557,300–the third highest yearly amount of revenue generated since the fee/tax was implemented in 2011. That follows the lowest annual revenue generated from the fee to date last year, for 2016 (see PA PUC Impact Fee Report: Revenue Down Again in 2016). However, 2016 was the low point for drillers drilling new wells–the bottom of the valley in the oil and gas industry. Since mid-2016 we’ve been on an upswing in drilling new wells, which is reflected in 2017 impact fee revenues. Below we include the PUC press release, and screenshots for many of the pretty color pie charts showing topline numbers. What was the #1 county receiving impact fee revenue (meaning the #1 county drilled) in 2017? Once again it was Washington County. The driller paying the most in impact fees in 2017? Range Resources. The municipality receiving the most revenue from impact fees (meaning the most drilled municipality)? Center Township, in Greene County. Here’s the 411 on impact fees (i.e. taxes) raised and spent in PA for 2017…
    Read More “PA Impact Fee/Tax Hauls in $210M in 2017 – Third Highest Ever”

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    PUC Says PA Strippers Reduced 2017 Impact Fee by $6.1 Million

    Once again we’re talking about strippers. Uh, stripper *wells* that is. In 2012 Pennsylvania passed the Act 13 drilling law that includes an impact fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells targeting the Marcellus. All 45 of the vertical-only wells were fracked. Initially those wells produced more than 90 thousand cubic feet per day (Mcf/day), but by December of the year in which they were drilled, the wells produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day, arguing the word “any” is not a get-out-tax-jail-free card. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won the case in March 2017, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy with claims the Act 13 impact fees are now in jeopardy. So the PUC appealed the case to the PA Supreme Court. The Supremes heard arguments in the case in April (see PA Supreme Court Takes a Close Look at Strippers…as in Wells). The PUC released its full impact fee revenue generated and disbursed report yesterday (see today’s lead story). The PUC reports that not only are the fees from the Snyder wells missing from the total, but fees for some wells from other drillers as well–some 318 wells in all. Those other drillers cite the Snyder Bros. case as evidence they don’t owe money on what they consider to be stripper wells. In fact, when you total it all up, the PUC says the impact fee revenue for 2017 would have been ~$6.1 million higher if the “missing” fees from those 318 wells were part of the mix…
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    NY Landowner Who Sued for “Takings” re Frack Ban Loses Fed Case

    Is this the sad end to a noble cause? In 2015 MDN told you about an Allegany County, NY attorney/landowner who filed a lawsuit against the New York Dept. of Environmental Conservation (DEC) over their infamous and politically-motivated ban on fracking (see 1st Lawsuit Filed Against NY Cuomo Frack Ban – in Allegany County). The lawsuit was filed in state Supreme Court in Allegany County. Don’t be fooled by the Supreme Court label. In NY, Supreme Court is one level up from county court. The Supreme Court judge tossed the case saying the attorney/landowner didn’t have standing to file the lawsuit in the first place because he never had a permit to drill on his property. The Appellate Division later upheld the decision. The attorney/landowner then filed the same lawsuit in federal court–bypassing Cuomo-appointed state judges–in federal court last December (see NY Resident (& Lawyer) Sues DEC in Federal Court re Frack Ban). On Monday U.S. District Judge Michael Telesca ruled in that case–against the attorney/landowner, on what amounts to a technicality, saying the case violates the 11th Amendment of the U.S. Constitution which protects states from being sued for money in a federal court. Is this now the end? Does our intrepid attorney/landowner, have anything else up his legal sleeve?…
    Read More “NY Landowner Who Sued for “Takings” re Frack Ban Loses Fed Case”

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    Latest EDF Methane “Leakage” Study Picks Numbers Out of the Air

    Another fake study is leading to a plethora of fake news stories–from the usual sources. The Environmental Defense Fund (EDF) used to be, once upon a time, at least somewhat reasonable. Out of the crop of environmentalist wackos, they were the best. People you could have a rational conversation with about fossil fuels. People you could carry on a civil debate with. No more. For the past few years the organization has taken a hard left turn and never looked back. Their latest annual “methane is leaking/the sky is falling” report is proof of that. Over the past six years the EDF has published study after study estimating methane leakage from gas drilling/pipelines/delivery systems somewhere between 1.2% and 1.5%. We all know that some methane leaks out–it’s inevitable. Gas companies are in the business of ensuring it doesn’t happen–it’s the commodity they sell! But sometimes it leaks–out of valves, or pipeline connections, etc. Methane is, as the false-but-popular meme goes, a “far more potent greenhouse gas” than carbon dioxide. Warmists say it so often to themselves, it’s like a mantra. “Methane is worse that CO2.” But the newest EDF “study,” which isn’t really new, pulls new numbers out of the air and now claims 2.3% of methane leaks out of the system. The EDF study is published in the so-called journal Science (which should be renamed Political Science), giving mainstream leftist news sources like the New York Times, Bloomberg and others permission to trumpet headlines that “methane leaks are far worse than the EPA, and we all, thought.” Even if we accept EDF’s new, much higher number of 2.3% leaking (which we don’t accept, but let’s pretend), even at that “high” number, EDF’s own warmist kindred admit extracting and burning natgas to generate electricity is STILL more beneficial for the climate than burning coal (Princeton University says the threshold is 3.2% leakage where natgas is no longer “good” for the climate). So while this is a big story in the leftist media echo chamber, it’s really no story at all…
    Read More “Latest EDF Methane “Leakage” Study Picks Numbers Out of the Air”

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    IHS Report: Shale Gale Turns 10, Looking Back & What’s Ahead

    Here’s a bold prediction: The Age of Natural Gas will replace the Age of Oil–within our lifetimes. That’s the thought running through our head as we read a new report from analytics/consulting powerhouse IHS Markit titled, “The Shale Gale Turns 10: A Powerful Wind at America’s Back.” IHS Markit expects natural gas production to rise by almost 8 billion cubic feet per day (Bcf/d), more than 10%, in 2018 alone. Altogether, U.S. production is expected to grow by another 60% over the next 20 years, according to the report. Additionally, IHS Markit now estimates that approximately 1,250 trillion cubic feet (Tcf) of U.S. supply is economic below $4 per thousand cubic feet (Mcf). That’s up from a previous estimate of 900 Tcf in 2010. “To say that the ‘Shale Gale’–as IHS Markit originally coined it in 2010–has been anything but a veritable revolution would be an understatement,” says Daniel Yergin, vice chairman, IHS Markit and co-author of the report. “It represents a dramatic and largely unanticipated turnaround that dramatically changed both markets and long-term thinking about energy.” Indeed. Here’s more about the report…
    Read More “IHS Report: Shale Gale Turns 10, Looking Back & What’s Ahead”

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    CNX Signs Deal with Evolution to Use 100% Electric Fracking Fleet

    CNX Resources announced Tuesday that the company has signed a long-term contract with Evolution Well Services to use Evolution’s 100% natural gas-fueled electric pressure pumping equipment. That is, CNX will use electric fracking equipment, with the electricity generated by burning natural gas (instead of diesel). According to Evolution, their “next generation” equipment saves drillers “up to 95 percent on fuel costs.” Whoa! If that claim is true (we have no reason to disbelieve it), it certainly changes the economics of fracking. Using natgas to generate the electricity, instead of diesel, also has the benefit of cleaner air. And here’s the coolest part: The natural gas used to power the electric generator comes from other other CNX wells in the area, i.e. “field gas.” Look ma, no more endless truck deliveries of diesel fuel! Here’s the exciting news that CNX is a “first-mover” on this new technology…
    Read More “CNX Signs Deal with Evolution to Use 100% Electric Fracking Fleet”

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    No Severance Tax in This Year’s Massive, Way-Too-High PA Budget

    This year’s Pennsylvania budget deal is different from the previous three such annual budgets. One way it’s not different is that this year’s budget once again hits a new high–a massively bloated, morbidly obese $32.7 billion. Although the budget does not include any new taxes, it does increase spending in a number of areas, including “education” (i.e. teacher’s unions). Democrat Gov. Tom Wolf once again asked for a Marcellus-killing severance tax this year, but he didn’t really mean it. He knew he wouldn’t get one. So Wolf brokered a deal with House and Senate Republicans that leaves out a severance tax. In the previous three budgets Wolf demanded a severance tax and delayed adopting each budget by months, in an act of petulance and temper tantrum. Since this is an election year and Wolf is up for reelection, he decided to forgo the histrionics over a severance tax. So, we’ve dodged the tax bullet once again. However, if Wolf is reelected, expect him to double down and perhaps even shut down state government in order to get a severance tax. The tax battle will be super-nasty next year, you can count on it. Meanwhile, the Senate is due to pass the budget on Friday, and Wolf will sign it soon after…
    Read More “No Severance Tax in This Year’s Massive, Way-Too-High PA Budget”

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    SWPA Gas-fired Elec Plant Next to Pot Farm Nears Final Approval

    Last October MDN told you that a second Marcellus gas-fired electric generating plant is planned for Greene County, PA (see 2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA). Hill Top Energy Center, based in Huntington Bay, N.Y., is planning to build a 620 megawatt plant on 41 acres of land off Thomas Road in Cumberland Township. The PA Dept. of Environmental Protection (DEP) held a public hearing in early November, and in early December the DEP issued an air quality permit for the project (see PA DEP Issues Air Permit for Gas-fired Elec Plant Next to Pot Farm). The plant will be built next door to a “medical marijuana operation”–i.e., a pot growing farm. Here’s an idea: Why not burn pot to generate the electricity instead of natgas? Roughly the same CO2 footprint, with the added benefit of lacing the air in the region with happy smoke. Oh well, back to reality. What’s left to do before construction begins on the Hill Top Energy Center? The facility needs a building permit from Cumberland Township. Plans will be reviewed at the next town meeting on July 2. If the plans are approved, a building permit will follow in short order. However, Hill Top says they don’t plan to begin construction until early 2019…
    Read More “SWPA Gas-fired Elec Plant Next to Pot Farm Nears Final Approval”

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    Presbyterians Vote to Divest from Fossil Fuels – Yet Keep Using Them

    Liberal Presbyterians in Pittsburgh, along with their comrades from New York, have succeeded in pressuring a once-great denomination, Presbyterian Church (U.S.A.), into adopting a proposal that forces the denomination to divest from all investments in fossil fuel companies, and instead invest in so-called renewable energy companies. The measure says divestment is “the beginning of a faithful response to the devastating and urgent reality of climate change.” The leaders of the divestment movement within the denomination say investing in fossil fuels is the moral equivalent of investing in tobacco, alcohol and gambling. And yet the very same people and the very same denomination refuse to lead by example. They don’t force their churches to quit using “devastating fossil fuels” to heat and cool their buildings. They don’t demand parishioners quit driving fossil-fuel powered automobiles to church. And they certainly don’t refuse tithes and offerings from those who work at evil fossil fuel companies (nor do they prohibit contributions from fossil fuel companies). Just a tad hypocritical?…
    Read More “Presbyterians Vote to Divest from Fossil Fuels – Yet Keep Using Them”

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    Antis Convince Chatham County, NC to Extend Frack Moratorium

    In 2014, the North Carolina legislature passed a law that specifically says local municipalities can’t regulate oil and gas exploration–it is the sole responsibility of the state to do so. Some municipalities thought there were loopholes they could use. Stokes and Chatham counties enacted moratoriums instead of outright bans, hoping to game the system. In order to plug the loopholes, the NC General Assembly approved a 41-page “technical corrections” bill (literally passed in the middle of the night) in September 2015 (see NC Legislature Makes Local Frack Bans/Moratoria Illegal). The technical corrections bill, signed into law by then-Gov. Pat McCrory, introduced language which closes any perceived loopholes and makes any actions like the ones in Stokes and Chatham illegal. And yet the moratoriums in those counties persist, contravening NC law. On Monday night Chatham County commissioners voted (unanimously) to extend their illegal moratorium until Jan. 31, 2019. How do they get away with it? The obvious answer is that nobody cares about drilling in Chatham County, otherwise there would have been a lawsuit to challenge this blatant violation of the law…
    Read More “Antis Convince Chatham County, NC to Extend Frack Moratorium”

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    Dela. Riverkeeper Pressures DRBC to Revoke ME2 Pipe Permit

    Here’s the latest strategy in THE Delaware Riverkeeper’s ongoing war against fossil fuels, and against natural gas pipelines in particular: Pressure the Delaware River Basin Commission (DRBC) to revoke a permit granted by the agency to the Mariner East 2 (ME2) pipeline project on the flimsy basis that ME2 has “violated” the conditions of the permit. Frankly, we didn’t even know the DRBC had issued a permit for ME2. After all, ME2 is a state-permitted project and does not come under federal authority. We doubt the DRBC has legal authority to issue a permit for the project–but if no one challenges them, their authority stands. ME2 probably thought it easier to just get the permit and not squabble over it. According to Big Green mouthpiece PBS StateImpact Pennsylvania, the DRBC is actually considering Riverkeeper’s request. The problem with this latest strategy by Riverkeeper is that DRBC’s executive director, Steve Tambini, is so weak, he may fold like a cheap deck of cards and actually do it. Tambini, who has been a major disappointment since taking over from the ultra-leftist Carol Collier, seems happy to take his marching orders from Riverkeeper. We have to wonder if this latest strategy will bear fruit. A scary proposition. But Riverkeeper isn’t content to try and scuttle ME2 by pressuring the weak DRBC as its only strategy. Last week the DRBC filed a “groundbreaking” lawsuit against the ME2 project in U.S. District Court for the Eastern District of Pennsylvania, meant to stop the project by court order…
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    TransCanada Says Exploded Leach XPress Pipe Back Online in July

    TransCanada’s Leach XPress project–some 160 miles of new natural gas pipeline and compression facilities in southeastern Ohio and West Virginia’s northern panhandle which flows 1.5 billion cubic feet (Bcf) of gas all the way to Leach, Kentucky (hence the name)–went online January 1st. A section of the pipeline exploded and burst into flames on June 7 (see Leach Xpress Pipeline Explodes in Marshall County, WV). TransCanada (and their Columbia Gas Transmission subsidiary) is working feverishly to get the pipeline back online. As of last Friday, the Stagecoach-LXP meter, which ties into the Strike Force South gathering system station, was back up and flowing, up to 190 million cubic feet per day (see Part of Leach XPress Pipe Up and Running Following Explosion). The company told shippers earlier this week they expect to have the full 1.5 Bcf/d pipeline back online “early in July.” Still no word on what caused the explosion, although a stray comment we read leads us to speculate…
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