Industrywide Issues

  • | | | | | |

    Monroeville Seismic Testing Ordinance Court Case Settled

    Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance is meant to hassle Huntley & Huntley (H&H), which wants to conduct seismic testing in two rural areas of the municipality. In October, the contractor hired to do the seismic work for H&H, Geokinetics, took Monroeville Council to court over their punitive seismic ordinance (see Monroeville Seismic Testing Ordinance Challenged in Court). In the complaint, Geokinetics said, “Monroeville’s intransigence is not motivated by any legitimate concerns for the health and safety of its citizens, but rather by its council’s concerns about November elections.” The elections have come and gone and the hostile-to-shale Monroeville Council has settled the court case with Geokinetics. And yes, seismic testing will now begin!…
    Read More “Monroeville Seismic Testing Ordinance Court Case Settled”

  • | | |

    Ray of Hope in PA Severance Tax Debate: Lib Dems Attack M-U

    MDN has closely followed the effort to pass a dreadful bill in Pennsylvania known as House Bill (HB) 1401, which would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state. Last week, just ahead of the Thanksgiving holiday, the House debated the bill for two days–then left town “abruptly” without taking any further action (see Update on PA Severance Tax Bill – More Progress, House Leaves Town). What happens now? Mainstream media is doing its best to put on a brave face that the bill is inevitable (see Final Push to Tax PA Drillers & Give Money to Philly Teachers). However, we’ve spotted more than one article in which the liberal Democrats who advocate for this bill are complaining about oil and gas “lobbying” being done in Harrisburg–blaming the big, bad Marcellus industry for continuing to block the bill. We take that as a very good sign–that the lib Dems are moaning and complaining. If they thought they had a prayer of a chance in passing 1401, they wouldn’t lash out in frustration as (for example) PA Rep. Vitali is now doing–lib Dem from the Philadelphia area. Nor would lib Dem newspapers like the Delaware County Daily Times run an “editorial” blaming Republicans playing politics for refusing to do what “everyone knows” should be done–pass a severance tax. These are a sure signs the lib Dems think they’ve lost and will not get the disastrous HB 1401 bill passed. Which makes us break out in a broad smile…
    Read More “Ray of Hope in PA Severance Tax Debate: Lib Dems Attack M-U”

  • | | |

    PA Awards 5 “Alternative Fuel” Projects $1.1M – All Fossil Fuels

    Yesterday Pennsylvania Gov. Tom Wolf (liberal Democrat) issued a press release to take credit for/crow about handing out another $1 million of taxpayer money. This time the money is part of the state’s Alternative Fuel Incentive Grants (AFIG) program–a program aimed at replacing gasoline and diesel fuel. At least replacing a little bit of it–a token gesture. The state issued grants totaling more than $1.1 million in their effort to replace fossil fuels as the fuel that powers vehicles. And what “alternative” will replace those nasty fossil fuels? What clean-burning, good-for-the-environment option did PA deign to fund for over $1 million? Was the money used to purchase new electric charging stations for Chevy Volts, Nissan Leafs, and Teslas? Nope. The superior option to replace those nasty fossil fuels is…other fossil fuels! The grants will buy buses that run on propane, and build compressed natural gas (CNG) refueling stations for vehicles that run on CNG. No electric outlets in sight. By using propane and CNG, Wolf says PA will replace “hundreds of thousands of gallons of fuel” (meaning gasoline and diesel), making PA’s air cleaner. We think it’s kind of funny that Wolf’s enviro left hates natural gas, yet Wolf calls it clean and green and hands out money to make it more widely available…
    Read More “PA Awards 5 “Alternative Fuel” Projects $1.1M – All Fossil Fuels”

  • |

    Status Report for 10 Vital Marcellus/Utica Pipeline Projects

    There are a number of important pipeline projects, key to moving Marcellus/Utica gas either out of our region, or to places in our region that urgently need it. Some projects we’ve been writing about for years–like the stalled Constitution Pipeline from Susquehanna County, PA into New York State. Others are relatively recent, like the Valley Lateral Pipeline, a short pipeline to feed a power plant being built in Orange County, NY. Some projects like PennEast Pipeline are not yet fully approved by the Federal Energy Regulatory Commission (FERC), and now face an uphill battle in New Jersey where an ultralib just got elected governor–saying he’ll do his best to hassle the project. What we need is a scorecard! What’s the status of all these important projects? Fortunately the sharp writers at E&E News (Energy & Environment Publishing) has just issued such a scorecard, chronicling 10 important, we’d call them vital, pipeline projects in the East: Constitution, Northern Access, Valley Lateral, PennEast, Atlantic Sunrise, NEXUS, Rover, Mountain Valley, Atlantic Coast, and Sabal Trail. Here’s a status report for each project…
    Read More “Status Report for 10 Vital Marcellus/Utica Pipeline Projects”

  • | | | | |

    Michelle Hook: NatGas Missionary in Hostile Territory (New York)

    We live in a different world here in New York State–MDN’s beloved, lifelong home state. We suppose it’s like living in East Germany just after The Wall was built. Our wall is not physical but political. Even so, it’s just as real. Our state has become something of a socialist/Communist dictatorship. Our Constitutional property rights have been stripped away. Some private companies are actively opposed and frustrated by our governor, who then turns around and doles out taxpayer money to other private companies who are his cronies. We have no shale drilling, and no prospect of it until Cuomo is voted out of office. He’s even taken to stopping pipelines. Fortunately some pipelines, like the Millennium, were built before Cuomo caught the green fever. However, if you try to expand existing pipelines, say by running a 7.8 mile spur to an electric power generating plant that’s almost built, Cuomo will try and stop you. He’s like a hostile war lord in a third-world country. A tinpot dictator. Operating a pipeline in such a climate is not easy. It brings to mind stories of missionaries who put their own lives at risk to travel to hostile lands to bring religion to the heathen–whoops, to the indigenous population. One such pipeline missionary operating in New York is Michelle Hook, director of public relations for the Millennium Pipeline Company. How does Michelle do it, without going crazy?…
    Read More “Michelle Hook: NatGas Missionary in Hostile Territory (New York)”

  • | | | | | |

    Fed Court Grants Green, OH Request to Stop NEXUS Pipe Construction

    Who says you can’t buy a court decision–at least a temporary one? Back in May MDN told you about the antis running the City of Green, Ohio hellbent on stopping the NEXUS Pipeline, all of it (see Green, OH Paying Lawyers $100K to Fund Stop NEXUS Crusade). Green City Council voted to use $100,000 of taxpayer money to hire a Cleveland law firm to file a lawsuit “aimed at stopping the pipeline from being built or stopping the project altogether.” NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, was the first major pipeline project to get approved after the Federal Energy Regulatory Commission (FERC) once again had a quorum (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). Green’s high-priced lawyers filed their lawsuit in the 6th U.S. Circuit Court of Appeals, requesting an emergency stay blocking construction. Late last week a three-judge panel voted 2-1 in favor of Green’s request for an emergency stay, which temporarily blocks further construction of an 8-mile segment of the NEXUS Pipeline in the vicinity of Green (but not anywhere else). The judges believe Green’s lawsuit is likely to prevail in court–hence stop any construction for now around Green. The big problem, from our limited legal understanding, is that the underlying lawsuit filed by Green challenges the Ohio EPA’s decision to grant water crossing permits for the ENTIRE 257-mile pipeline through Ohio. If Green prevails in that case, construction on the entire pipeline (as it passes through Ohio) is stopped–not just an 8-mile segment around the pipeline-phobic Green…
    Read More “Fed Court Grants Green, OH Request to Stop NEXUS Pipe Construction”

  • | | | | | | |

    Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop

    In September MDN told you about Craig Butler, director of the Ohio Environmental Protection Agency (OEPA), that Bulter had gone off the rails on a power trip, claiming OEPA has the power to regulate the federally regulated Rover Pipeline project (see Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe). Butler is fining Rover for a string of some major, mostly minor drilling mud spills related to underground horizontal directional drilling (HDD). Earlier this month Butler fleeced the Ohio Attorney General into suing Rover (see OH EPA Director Manipulates Atty General to Sue Rover Pipeline). Like Captain Ahab obsessed with Moby-Dick, Butler continues his quest to stop Rover. Butler’s latest attempt is to “request” (i.e. demand) Rover stop all HDD work now under way because another drilling mud spill happened on November 16th. The latest spill (called an “inadvertent return”) was 200 gallons and ended up in the Black Fork Mohican River in Ashland County. For new MDN readers: drilling mud is bentonite clay–the same stuff used to make kitty litter, toothpaste and cosmetics. It’s nontoxic and perfect safe for the environment–unless there’s a lot of it, and then it can smother critters like salamanders and fish. But honestly, 200 gallons of it is NOTHING. Butler sent a letter to Rover and has also sent it to the Federal Energy Regulatory Commission (FERC) in yet another attempt to get FERC to halt all Rover HDD work…
    Read More “Ohio EPA Continues Vendetta Against Rover Pipe, Demands HDD Stop”

  • | | |

    New Gas-Fired Power Plant Announced for Tioga County, PA

    Energy Solutions Consortium, based in Buffalo, NY, has been trying to build a number of gas-fired electric plant projects in West Virginia for years (see Big News: 3 More Marcellus-Powered Electric Plants Coming to WV and WV Builder Tells PSC Power Plant Can Burn Methane AND Ethane). However, the regulatory environment in WV creeps along, like molasses, and none of the projects are even under construction–yet. WV’s own Secretary of Commerce, Woody Thrasher, recently said WV is downright unfriendly to electric plant projects (see WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants). Meanwhile, Pennsylvania is building new Marcellus-fired electric plants left and right. Perhaps noticing the difference in regulatory climates, Energy Solutions has decided to try a project in PA–in Tioga County (about 2.5 hours from Buffalo). The $500 million project will be called Tioga County Power–a 680 megawatt plant capable of powering 430,000 homes, fed by yummy Marcellus Shale gas produced in PA…
    Read More “New Gas-Fired Power Plant Announced for Tioga County, PA”

  • | | | | |

    Tenaska Westmoreland Power Stn Construction Milestone: 1M Hours

    Artist’s rendering of what Tenaska Westmoreland will look like

    In August 2016, energy giant Tenaska (headquartered in Omaha, NE) broke ground to build a 925-megawatt natural gas-fueled power plant in Westmoreland County, PA (see Groundbreaking for Tenaska Marcellus-Fired Electric Plant in SWPA). The Tenaska Westmoreland Generating Station is costing $780 million to build. Some of that money, $22 million so far, is being spent to upgrade the local Municipal Authority of Westmoreland County water treatment plant (see Tenaska Spends $22M in Water Plant Upgrades Ahead of Elec Project). The plant is on track to be completed by late 2018 when it will go online, providing power for 925,000 homes. Some 600 workers are active on the project. Tenaska recently announced a major milestone in the construction of the plant: Those 600 workers have now logged 1 million hours of work in building the plant, and there’s still plenty of hours to go. That’s 600 workers being paid with private money–money that circulates and recirculates in the local and regional economy, into the pockets of other businesses, into the pockets of labor unions (via dues), and into the pockets of local municipalities (and the state) via tax revenue. Westmoreland County and PA owe Tenaska a huge “thank you” for building the Tenaska Westmoreland Generating Station…
    Read More “Tenaska Westmoreland Power Stn Construction Milestone: 1M Hours”

  • | | | | | | |

    Converted Oil Pipeline Near Philly Extends Open Season for NatGas

    Earlier this month we shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook had been purchased by a subsidiary of New Jersey Resources will get converted to flow more Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline has been named the Adelphia Gateway. On Nov. 2nd the project began an “open season”–a period of time when shippers can reserve capacity along the pipeline. Such contracts typically run for 10-20 years and guarantee the pipeline (which will invest millions) can recoup its investment and make a profit. The open season was scheduled to expire on Nov. 20th, but Adelphia has extended the open season to Dec. 8th. Adelphia says the extension was to allow for the Thanksgiving holiday. Typically such an extension means the project hasn’t secured enough business to be profitable. We don’t have a feel one way or the other for this project. Perhaps a number of people did take off for the Thanksgiving holiday and this will give Adelphia a chance to button up previously expressed interest. Signing on the dotted line means an office full of lawyers will need to review it first–and lawyers like their vacations…
    Read More “Converted Oil Pipeline Near Philly Extends Open Season for NatGas”

  • | | |

    Final Push to Tax PA Drillers & Give Money to Philly Teachers

    The tax-and-spend liberals in Pennsylvania and those who oppose fossil fuels (almost always one-and-the-same) are still pushing a dreadful, devastating severance tax bill proffered by RINOsaur (i.e. ancient RINO) State Rep. Gene DiGirolamo known as House Bill (HB) 1401. The bill, if passed into law, would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). Last week, just ahead of the Thanksgiving holiday, the House debated the bill for two days–then left town “abruptly” without taking any further action (see Update on PA Severance Tax Bill – More Progress, House Leaves Town). What happens now? The House doesn’t return for voting work until next Monday, Dec. 4th. In the meantime, the bill’s lib supporters in mainstream media are trying to create the impression the bill will get adopted when the House returns from break…
    Read More “Final Push to Tax PA Drillers & Give Money to Philly Teachers”

  • | | |

    “Environmental Justice” Lunacy in Allegheny County, PA

    In Pennsylvania, the “Office of Environmental Justice” (sounds like a comic book thing) is nothing more than a way for po’ folk and minorities to sue the Marcellus industry over non-existent transgressions. In 2015, then-Secretary of the Dept. of Environmental Protection (DEP), John Quigley, “reactivated” the Office of Environmental Justice (see Environmental “Justice” for Some, Not for All, Courtesy PA DEP). If you live in a PA community where at least 20% of the people are below the poverty line, or if the community is composed of at least 30% minorities (defined as “non-whites”), the so-called Office of Environmental Justice will give you special treatment if you claim to have been harmed somehow by the Marcellus industry. Everyone else gets ordinary/regular environmental “justice”–no special treatment if you’re white or middle class. In Allegheny County local officials are miffed that the municipality of McCandless got labeled as an environmental justice community, but Etna didn’t. McCandless is too white and too rich, whereas Etna is not. We would find it all rather comical–if the Environmental Justice Leaguers didn’t have such a potent weapon to oppose the shale industry…
    Read More ““Environmental Justice” Lunacy in Allegheny County, PA”

  • | | |

    Update on PA Severance Tax Bill – More Progress, House Leaves Town

    We have a brief respite, but are still in a dangerous position. The Pennsylvania House continued to debate and vote on amendments to House Bill (HB) 1401 yesterday–the Frankenstein bill introduced by RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) that would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). Debate on the bill began Monday, making quick progress (see Disastrous PA Severance Tax Bill Debated in House, Makes Progress). More progress was made yesterday. Some amendments to the bill passed, some failed–and then the House “abruptly adjourned” late last night without voting on the full bill itself. They got outta Dodge. The House returns to Harrisburg for more voting on Dec. 4th, so we have nearly two weeks of a reprieve before the battle begins again. It is vital this bill NOT PASS–for the future of Marcellus drilling in PA. Below is a list of the amendments that have, so far, passed and not passed, and how they tweak and change the overall Marcellus-killing HB 1401 bill…
    Read More “Update on PA Severance Tax Bill – More Progress, House Leaves Town”

  • | | | | |

    DRBC Lawyer Nearly Faints 2nd Time When Questioned by Fed Judges

    This is getting pretty old, fast. Two weeks ago MDN told you about a lawsuit that finally got it’s day in court–a case brought by a Wayne County, PA landowner against the Delaware River Basin Commission (DRBC) over its ongoing, 10+ year ban on fracking in the Delaware River Basin (see DRBC Attorney Faints in Federal Court During Questioning). Under “heaving questioning” the attorney for the DRBC fainted in the court room, ending the session that day. Both sides were back in court yesterday to finish what began two weeks ago, and the judges once again turned up the heat on the DRBC attorney–and he almost fainted again, having to sit down (delaying proceedings for a time). Every time this lawyer gets tough questions that he doesn’t like, he pulls this fainting routine. Is it legitimate? Does he have a “condition?” Frankly, we don’t care. His “condition”–if that’s what it is–keeps blocking justice. If he’s not up to the job, remove him. Get someone who can handle the pressure. At least the session yesterday finished. Oral arguments are now done. MDN friend Tom Shepstone listened to a recording of the session and filed a fantastic report, recounting the back and forth–and how the DRBC’s defense collapsed (metaphorically) under the sharp eye of the judges doing the questioning. The DRBC and its shill leader Steve Tambini (a MAJOR disappointment since he was appointed in 2014) were exposed yesterday as the obstructionists they are…
    Read More “DRBC Lawyer Nearly Faints 2nd Time When Questioned by Fed Judges”

  • | | |

    Report: Utica Drillers Spend $300M (so far) on Fixing Ohio Roads

    The Ohio Oil and Gas Association (OOGA) and Energy In Depth (EID) Ohio recently published a new report that shows Utica drillers have spent more than $300 million in eight Ohio counties from 2011 until earlier this year improving and fixing 630 miles of Ohio’s roadways. The study, titled “Ohio’s Oil & Gas Industry Road Improvement Payments” (full copy below) takes a close look at Road Usage Maintenance Agreements (RUMAs) in eight counties. You read that right. The O&G industry has spent over $300 million in eight counties over the past seven years. That’s $300 million in PRIVATE (not government-confiscated-via-taxes) money to fix up roads. Those living in eastern Ohio are lucky dogs…
    Read More “Report: Utica Drillers Spend $300M (so far) on Fixing Ohio Roads”

  • | | |

    Basin Energy Buys/Merges in Marcellus-Utica Co. Katko

    Basin Energy, which acts as a holding company to invest in (and run) other companies located in the Marcellus/Utica, is based in Bridgeport (Harrison County), WV. Basin’s first acquisition was ProActive Services, an operator of natural gas pipeline compressor stations and other related oilfield services. In September 2015, Basin closed a deal on their second subsidiary–the Jane Lew (Lewis County), WV-based Starett’s Well Service, a specialty roustabout services firm, focused on well site and midstream natural gas infrastructure in the Marcellus and Utica Shale regions (see WV Roustabout Company Sells Itself to Another WV Company). Since that time Basin has been busy. In January of this year, Basin closed on acquiring Appalachian Production Services (APS), a company focused on focused on providing services for producers in the Marcellus and Utica Shale. A few weeks ago Basin did it again, closing a deal to acquire Katko, LTD. Katko is focused on providing well hook up services, maintenance of midstream and production assets and specialty welding services in OH, PA and WV. The the owner and founder of Katko, John Bettem, will join Basin’s board of directors. Terms of the private deal were not disclosed. Basin Energy has come out of nowhere in a few short years to become an important oilfield services player in the Marcellus/Utica…
    Read More “Basin Energy Buys/Merges in Marcellus-Utica Co. Katko”