Some PA Drillers Threaten to Spoil it for All via Royalty Shenanigans
We’ve written a number of posts over the years about the ongoing, sometimes quiet sometimes not, civil war between Pennsylvania landowners and some (not all) drillers who use inflated post-production deductions to pad their own bottom lines, leaving landowners with peanuts–sometimes with no royalties at all (see Deep Dive: PA Royalties Civil War Between Landowners & Drillers). If we can oversimplify and summarize this complex issue, landowners maintain that a 1979 PA law guarantees landowners a 12.5% royalty regardless of expenses involved in extracting the gas, and drillers say no, landowners must abide by the contracts they’ve signed and if those contracts allow post-production costs to be deducted before calculating a royalty, the rate may go lower than 12.5%–sometimes to zero and below. PA landowners have, for the past six plus years, lobbied for legislation to clarify and protect a 12.5% minimum royalty. Today we have a guest post from the landowner point-of-view. Thad Stevens is a Gaines, PA resident and real estate developer. Thad has negotiated more than 50 oil and gas leases. He sits on the Dept. of Environmental Protection Citizen Advisory Council and is a director with the National Association of Royalty Owners PA chapter. We consider Thad a friend. He’s smart and he’s passionate about the the ongoing issue that some companies take inflated post-production deductions leaving PA landowners with little or nothing. Thad writes that some of PA’s gas drillers are displaying real arrogance in their attitudes toward the very people they need the most–landowners…
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Hypersensitive: excessively or abnormally sensitive. That’s the word we would use to describe what’s happening in Chester County, PA–a suburb of Philadelphia–with regard to underground horizontal directional drilling work (HDD) being performed by Sunoco Logisitics Partners on the Mariner East 2 pipeline project. The company keeps having “inadvertent returns”–which we call leaks. Drilling mud (bentonite) used to cool the drill bit goes down the hole, and sometimes it pops back up on the surface in a different place from where it went down. Since the drilling mud is non-toxic clay and water (same stuff used to make kitty litter, toothpaste and lipstick), it’s no big deal. Unless there’s thousands of gallons of it turning up in a creek where it can smother fish and aquatic life. There’s cracks in the ground near the surface and sometimes the mud leaks out of those cracks. Sunoco must track leaks of down to less than one gallon. Antis look at the numbers and make wild claims that the pipeline has leaked “over 100 times” since drilling began. While technically true, many of those leaks are nothingburgers–not worth tracking or talking about (a few gallons at most). However, some of the leaks are big and yes, those do need talking about. Over the past week or so another four leaks have occurred in Chester County, totaling 8,000 gallons. Fortunately none of it ended up in a creek. Because of the leaks, the state Dept. of Environmental Protection (DEP) has, once again, shut down any further HDD work in Chester County…
NOTE: A previous version of this post reported a total price of $3.2 million, now changed to account for the addition of an extra $2.4M for required SEPs. See below.
This is almost beyond words. Earlier this week MDN reported that arrest warrants had been issued for a 61 year-old woman and her daughter sitting 30 feet up in the top of a tree that needs to come down to make way for the Mountain Valley Pipeline (see 
The Penn State campus in Erie County (called Penn State Behrend) has been tapped by the PA Dept. of Community and Economic Development (DCED) to be the “lead partner” for developing business and market opportunities for the state related to the mighty $6 billion Shell ethane cracker–currently under construction in Beaver County. Erie County where Behrend is located is certainly not next door to the cracker, not nearly as close as some other Penn State campuses. So why was Behrend selected? In a word, plastics. “The strength of Erie’s plastics industry and the success of Penn State Behrend’s School of Engineering, which offers one of only six accredited U.S. plastics undergraduate programs, makes Erie of particular interest to DCED.” According to DCED’s Denise Brinley, senior energy adviser, “Penn State Behrend can provide critical connections to research support, materials testing and a talent pipeline that will add value to this large-scale petrochemical investment and associated growth in the plastics sector.” Penn State is kicking in a $250,000 grant to their Energy University Partnership for oil and gas strategies, to help prime the pump…
MDN reported two weeks ago that a subsidiary of Japanese conglomerate Mitsubishi wants to build a huge, new $1.5 billion natural gas-fired electric generating plant in the Meadowlands (New Jersey), just outside of New York City (see 
As supporters of the fossil fuel industry, we must deal with the issue of catastrophic, man-made global warming head-on. Our kids now grow up believing this lie, and they turn into activists demanding action–sometimes to the point of violence–in support of this lie. We recently read an opinion column by a young woman who appears to be bright, earnest, talented, dedicated–and she believes the lies taught to her about fossil fuels and their role in society. She recently protested in Albany, willing to risk arrest, all in the name of demanding Gov. Cuomo end the use of all fossil fuels in New York State. She’s deathly afraid (we’d call it a phobia) of a common occurrence: the construction and operation of a natural gas-fired power plant in Orange County, NY. What this young woman apparently doesn’t understand is that New York would be plunged back into the Dark Ages if we were to forgo all fossil fuel use–as she is demanding via her protests. Wall Street would move to another state with no electricity to operate its computer networks. Disease and death would be rampant throughout the state. Reliable electricity (used to charge the phone she uses to snap selfies of her protest marches and arrests) would be a thing of the past. It’s really quite sad that this young woman has been completely and incontrovertibly miseducated. Lied to. Education malpractice. The real shame is that she parades her abject ignorance for the world to see. The miseducation of our youth–the intentional lies told to them about man-made global warming, must stop…
A new fight is shaping up in the (crumbling) Empire State. Once again Andrew Cuomo, at the prompting of Big Green groups (corrupted by their big donations to his campaign war chest) has instructed his lackeys who run the Dept. of Environment Conservation (DEC) to reject a modest pipeline expansion proposal by Williams’ Transco Pipeline subsidiary. The project, which we’ve previously written about and are actively promoting, is called the Northeast Supply Enhancement (NESE) project (see 
Our favorite government agency, the U.S. Energy Information Administration, yesterday took a close look at natural gas production in Pennsylvania and how it has grown. A few interesting factoids: PA averaged a record high 15 billion cubic feet per day (Bcf/d) of natural gas production in 2017–3% higher than 2016. Most of PA’s natural gas production comes from the Marcellus Shale. PA production accounted for 19% of total U.S. marketed natural gas production in 2017. PA produces more natural gas than any other state except Texas. Several key pipelines have helped move some of PA’s enormous production to other markets. Here’s the insightful look at PA natgas production from expert number crunchers at EIA…
Government agencies, like the Federal Energy Regulatory Commission (FERC), share many of the same characteristics with business entities. For example, each has its own standard operating procedures (SOPs)–the rules that govern how that organization operates. In 1999 FERC adopted SOPs for how it reviews and decides on which pipeline projects it will approve, or not approve (called “Certification of New Interstate Natural Gas Pipeline Facilities – Statement of Policy”). Since 1999 FERC has operated pretty much the same way, taking into consideration certain factors, discounting or ignoring other factors, when approving pipeline projects. It’s time to update FERC’s SOPs. Last week FERC launched a review of its policies in reviewing pipeline projects and has invited the public to provide comments. Anti fossil fuel nutters have been the first in line, hoping to get FERC to adopt policies so strict no pipelines will ever again be approved. Antis have for years lied about FERC’s role in reviewing pipelines, calling the agency a “rubber stamp” approving 99% of the pipeline projects submitted. What antis don’t tell you is that FERC has provided negative feedback for many (most?) pipeline projects, causing the builder to either change the project plan or abandon it altogether. Under current SOPs pipelines either get built “the right way” according to FERC’s strict standards, or the project is withdrawn with no need to be rejected (hence the high “approval” rate). Here’s more background and context for what FERC may be looking to change about the way it approves pipeline projects…
Enough is enough. It’s time to end the silly charade of a 61 year-old kook sitting 30 feet up in the top of a tree that needs to come down to make way for the Mountain Valley Pipeline. Mainstream media could no longer maintain the veneer of credibility and continue to intentionally conceal the identity of the woman who would only call herself “Red”–which they did for weeks. No more. Her name is Theresa Terry. She goes by the nickname “Red.” We call her Grandma Red because she’s older (no idea if she’s actually a grandmother or not). Red’s daughter, also named Theresa, is up the same tree with her. The two Theresas are illegally trespassing on property (the tree) that now belongs to MVP, via eminent domain. As we told you on Friday, a group of far-left, liberal Democrat Virginia lawmakers actually support Red’s illegal action (see