Antis Apoplectic at Sight of Steam Coming from NY Power Plant
Do the anti fossil-fuel foes in Orange County, NY still not get it? Do they not understand a new gas-fired power plant is about to go online? Competitive Power Ventures (CPV) is building a legal, legitimate, safe, low-emissions electric generating plant in Wawayanda. The plant is almost done and is now preparing for commissioning. This is the same facility Manhattanite Hollywood star James Cromwell (with a summer home in the area) has protested over the past few years (see our stories here). This is the same facility that will be fed by a 7.8-mile natural gas pipeline that connects to the Millennium Pipeline, being fought tooth and nail by Andrew Cuomo’s corrupt Dept. of Environmental Conservation (see NY DEC Asks Court to Toss FERC Order re Millennium Pipe Project). One fact remains: the plant is built and it will go online–soon. Last Friday crews were cleaning in the plant, using low-pressure steam to clean the piping in advance of the commissioning/start-up process. Some of the steam (water vapor, H2O) escaped into the air and area antis were prostrate on the ground, seized with fear that the plant had started operating and was using oil to power it. Antis are still in 100% complete denial that the plant is about to start up–within WEEKS. An area newspaper ran a story which unintentionally made the antis look foolish–frightened at the site of water vapor (i.e. steam)–referring to the steam as “plumes.” The story magically disappeared from the newspaper’s website a day later–but not before we grabbed a copy…
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In early January, the Pennsylvania Dept. of Environmental Protection (DEP) told Sunoco Logistics Partners to suspend all work on the $2.5 billion Mariner East 2 (ME2) NGL pipline–from one side of the state to the other (see 
Yesterday MDN brought you the news that the Federal Energy Regulatory Commission (FERC) has slapped a stop work order on underground horizontal direction drilling (HDD) for Rover Pipeline at the site crossing under the Tuscarawas River (see 
A newly introduced bill in the West Virginia legislature–Senate Bill (SB) 295–appears to give WV counties the power to impose their own “impact fee” on the oil and gas industry. We say appears because the words “oil” and “gas” never appear in the bill–but those words do appear in a newspaper article discussing the bill. WV counties are in a bind. In PA, counties and towns get a healthy stream of revenue from PA’s “impact fee” (equivalent of a severance tax). When drilling comes to town roads get a lot of heavy truck traffic. Public services of all kinds–police, fire, government buildings–see more use. PA’s impact fee helps with those things. In Ohio, towns sign RUMAs with drillers–Road Use Maintenance Agreements. But in WV, the tax money counties did receive from the oil and gas industry was reduced in 2011 when the state legislature granted discounts to companies spending more than $50 million in the state. Want to fix or build a new road to handle traffic? Good luck! Enter SB 295 which (again) appears to grant counties the ability to assess certain fees, including an “impact fee,” on certain companies in order to assist with things like building and fixing roads. Here’s what we could find about SB 295…
Last September, amidst a heated state budget battle in Pennsylvania (where the phrase “severance tax” was on the lips of every Democrat and RINO in Harrisburg), a group of PA House Republicans did the hard work Gov. Tom Wolf and his cronies in the legislature refused to do: They figured out how to fund a wildly overspent budget without raising a single tax (see 
In November 2015 MDN reported on a zoning court case in Westmoreland County, PA (see 
Philadelphia is the sixth most populous city in the United States, with over 1.5 million residents. And yet *maybe* 120 people turned out yesterday for a Delaware River Basin Commission (DRBC) hearing on their proposed plan to permanently ban fracking in the Delaware River Basin. A pair of hearings were held earlier this week in rural northeast PA–in Waymart–where the turnout was upward of 150 people! Judging from the wild claims by green groups like THE Delaware Riverkeeper that thousands (millions!) of people don’t want fracking in the river basin, you’d think more than maybe 120 people would turn up for a hearing in a city like Philly. Could it be not all that many people in southeast PA give a hoot about fracking in two northeastern PA counties? That thought crossed our minds as we read the accounts of those who showed up at yesterday’s meetings in Philly. Yes, antis outnumbered those in favor of fracking, but that’s to be expected in Philly. Here’s a recap of yesterday’s meetings…
The price of natural gas is a complicated subject. First, “the price” is never just “the price.” Many people look to the NYMEX or Henry Hub spot price as “the price.” Indeed, most of the financial contracts for natural gas are based on the Henry Hub price. However, as we’ve written many times over the years, gas is bought and sold at hundreds of points along major interstate natural gas pipelines. The price at one place on a pipeline, like the Tennessee Gas Pipeline Zone 4 in northeastern Pennsylvania, is vastly different from the Henry Hub. Price is dependent on many factors–supply and demand to be sure. But also weather. Weather is probably the biggest influencer of natgas prices. Why? The warmer (or colder) it is, the more natural gas is used to cool or heat homes and businesses. The more demand, the higher the price. Conversely, the less demand, the lower the price. Henry Hub is a useful yardstick and the most-watched natural gas price in the world. Our favorite government agency, the U.S. Energy Information Administration, recently published their Short-Term Energy Outlook (STEO). In the STEO, EIA predicts the price of natural gas at Henry Hub will remain relatively flat both this year and next year. This year (2018), EIA says the average price of gas at Henry Hub will be $2.88 per thousand cubic feet (Mcf). Next year? EIA says the price will average $2.92/Mcf. The average price of gas at Henry Hub for all of 2017 was $2.99/Mcf. Bottom line: The price of gas is a bit depressing for gas drillers for the foreseeable future. Here’s EIA’s reasoning…
Yesterday Range Resources released a pair of press releases. One outlines a high level overview for what the company will spend in 2018 and beyond, for the next five years. The other release trumpets Range’s “proved reserves.” As for 2018, Range says they are reducing the amount of money they will spend to drill this year versus what they spent last year. Range previously said they would spend $1.15 billion this year. That’s now been reduced to $941 million. Last year Range spent $1.27 billion, so this year’s spending is down 26% over last year. That’s a pretty hefty decrease. The good news is that Range will spend 80% of this year’s budget on drilling in the Marcellus, mainly in southwestern Pennsylvania. Even though Range will spend and drill less this year, they predict production will grow another 25%. As for the 5-year outlook, Range says almost all growth will come in the Marcellus (not the Louisiana Haynesville, their other drilling location). Range still has some 3,200 locations where they can drill new wells. Range CEO Jeff Ventura says shale has entered a “new era” of shale development where companies (like Range) have “captured the most prolific resources” and will now switch to focus on returns for shareholders. Translation: We won’t be drilling as much as we did in the past so we can concentrate on bottom line profitability. Which explains why Range is spending less this year than last. In the release Range calls the Marcellus its “flagship asset” and clearly signals the company will keep its focus here, in our region. As for proved reserves (how much gas and oil is in the ground, retrievable with today’s technology and at today’s costs), Range says proved reserves as of December 31 increased by 26% from the prior-year, now at 15.3 trillion cubic feet equivalent (Tcfe). That’s alotta gas! We have the Range announcements below, along with an updated PowerPoint slide deck chocked full of useful information…
At the end of last year Chesapeake Energy offered a $30 million olive branch to Pennsylvania landowners to settle claims the company had screwed them out of royalty money by artificially inflating post-production costs in an elaborate scheme to pocket more money at landowners’ expense (see 
The Ohio EPA continues its yapping insistence that the Federal Energy Regulatory Commission (FERC) *permanently* shut down underground horizontal directional drilling (HDD) work being done by Rover Pipeline near the Tuscarawas River over concerns that nontoxic (totally safe) drilling mud keeps disappearing down the borehole. FERC listened, sort of. In an order dated yesterday, FERC told Rover to *temporarily* stop HDD work at Tuscarawas until Rover can outline a plan for moving forward that FERC has confidence will address concerns over the disappearing drilling mud. When mud used for drilling holes comes out on the surface any place other than the hole from which it went down, it’s called an “inadvertent return.” We call it a leak. However, if that same mud never comes back to the surface, as sometimes happens, it’s fine. Except when it’s a LOT of mud, as is the case in drilling near Tuscarawas where a cumulative 200,000 gallons of it have disappeared down hole, not (so far) coming back out. Sooner or later it seems likely that at least some of that mud will come back to the surface–somewhere. That’s the concern that no doubt prompted FERC to send Rover a letter yesterday telling them to (for now) stop HDD work at Tuscarawas…
You may recall our story about the daughter of a Huntingdon County, PA landowner who took to a tree on her mom’s property in March 2016 in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see 
In 2016 the Pennsylvania legislature, over the objections of PA Gov. Tom Wolf, voted to shift $24 million away from a boondoggle program called the PA Alternative Energy Investment Act and into a new program called the Pipeline Investment Program, or PIPE (see 
That didn’t take long. We knew it wouldn’t. Last Friday the Federal Energy Regulatory Commission (FERC) gave its full, final approval for the PennEast Pipeline project, a $1 billion, 120-mile primarily 36-inch natural gas pipeline that will stretch from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. (see 
On Tuesday, two left-leaning, Harrisburg-based Democrat groups with innocent sounding names–the Keystone Research Center and the Pennsylvania Budget and Policy Center–introduced what they labeled as “The Pennsylvania Promise” during a presentation in the Capitol Rotunda. We call it “The Pennsylvania Grand Theft.” No doubt inspired by autocrat Andrew Cuomo in the state next door and his “free college tuition” program, the groups want to give away a “free” college education to PA residents who go to a PA state college or university. Of course nothing is free. The program would cost $1 billion a year and would be funded in part by (you guessed it), a Marcellus Shale severance tax. The personal state income tax would also go up in order to help pay for this “free” program. How is this not theft? Transferring money from those who work hard to earn it–to those who don’t. Government theft, plain and simple. We have such a program here in New York State and people are leaving our state in DROVES. Year in and year out NY loses population, particularly in the Upstate region. Socialism, the transference of wealth from those who earn it to those who don’t (or won’t), eventually breaks down when the earners get tired of being shaken down by their government and move away. That’s what will happen in PA if a cockamamie plan like “The Pennsylvania Promise” is adopted…