Industrywide Issues

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    Riverkeeper Campaign Pressures Towns to Support DRBC Frack Ban

    THE Delaware Riverkeeper is a far-left, radical environmental group that is the self-appointed “caretaker” of the entire Delaware River Basin. It’s run by Maya van Rossum and gets its funding from a variety of foundations, mainly the William Penn Foundation. Riverkeeper’s cause célèbre is a complete, and permanent, ban on fracking in the Delaware River Basin. They’d actually like a permanent ban throughout Pennsylvania (and every other state in the Union), but they’ll take a ban in the River Basin as a first step. Unfortunately Riverkeeper has the ear of the Delaware River Basin Commission (DRBC) and has pressured the DRBC for years to institute a total ban on fracking. The DRBC finally took a step in that direction in September (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). There has been no fracking in the River Basin for 10+ years. So why the urgency for the board to pass a ban now? Because a Wayne County, PA landowner has taken the DRBC to court, challenging their right to impose such a ban. After all, the adjacent Susquehanna River Basin (overseen by the Susquehanna River Basin Commission) is loaded with fracking–with NO harmful effects on water supplies. Earlier this month oral arguments were heard in federal court on the case. The attorney for the DRBC fainted under heaving questioning (see DRBC Attorney Faints in Federal Court During Questioning). The case was postponed to an as-yet-unscheduled future date. Neat trick–faint and the case is postponed another few months. In the meantime, Riverkeeper is obviously not convinced the DRBC will follow through with their threat to pass a permanent ban–or perhaps they want to give the DRBC more ammunition to do so. Riverkeeper is hosting a webinar next Monday–to stoke their crazy groupies. Mamma Maya’s sidekick Tracy Carluccio (Riverkeeper Deputy Director) will give the faithful instructions for how to harass local town boards to the point they’ll sign a petition to support a permanent ban. MDN has a mole on Riverkeeper’s email list and we have their invite below…
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    Marcellus Landfill in Washington Co. Seeks to Expand, Add TENORM

    MAX Environmental has operated the Bulger hazardous waste landfill in Smith Township (Washington County), PA since 1958. One of the primary customers for the landfill over the past 10 years has been the Marcellus industry–dumping drill cuttings (leftover dirt and rock from drilling) at the landfill. Earlier this year, MAX sold itself to Altus Capital Partners–a private equity investment firm–for an undisclosed amount (see Pittsburgh-based MAX Environmental Purchased by Investment Firm). With the closing of the deal, MAX’s CEO/owner, William Spencer, rode off into the sunset and Bob Shawver was brought in as the new CEO. At first Shawver signaled the operation would move away from focusing on Marcellus customers. Then reality set in and plans changed (see MAX Enviro Not Walking Away from M-U, Wants to Expand PA Landfill). MAX intends to ask the PA Dept. of Environmental Protection for a permit to expand the Bulger facility by 21 acres. They also want to begin accepting technologically enhanced naturally occurring radioactive materials, or TENORM, from shale drillers. The first stop is, however, is to get local officials on board with their plans. Smith Township has held several hearings about the proposal and last night met to talk about it again. Smith’s attorney prepared a motion for town supervisors that includes 32 conditions before they town will grant an OK to MAX to expand the Bulger facility…
    Read More “Marcellus Landfill in Washington Co. Seeks to Expand, Add TENORM”

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    Corp Raider Slinks Away After Losing EQT Fight; Selling Stock

    On Monday, Rice Energy was merged into EQT, creating the largest onshore natural gas producing company these United States (see Out with the Old: Rice Energy Sign Comes Down Day of EQT Merger). The $8.2 billion deal was first announced back in June (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). There was plenty of drama along the way to the deal getting done–primarily opposition by evil corporate raider Jana Partners, in collusion with Atlas Energy (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Jana was fresh off from helping Amazon take over the Whole Foods grocery store chain. Yet somehow EQT was able to vanquish Jana’s efforts to stop the merger. How did EQT do it? We went behind the curtain yesterday to share EQT’s winning strategy in defeating Jana (see EQT’s 4-Pronged Strategy for Defeating Corp Raider Jana in Rice Deal). They way corporate raiders work, as we’ve explained many times before, is to buy enough stock in a company to get a board seat, then agitate in the board room, forcing the company to layoff people and sell assets–all in a bid to make the stock price pop so the raider can sell their shares at a handsome profit and move on to the next victim. Disgusting organizations. Since Jana lost face and reputation by not stopping the EQT/Rice merger, they’ve decided to slink away, back into the darkness. We spotted a story that says Jana has already sold a portion of their EQT stock–and they continue shop more of it. They’ve thrown in the towel on EQT and will now go pick on someone else to destroy…
    Read More “Corp Raider Slinks Away After Losing EQT Fight; Selling Stock”

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    4 Months After Buying Baker Hughes, GE Wants to Sell It

    Industrial giant GE (General Electric) wooed and won the hand of Baker Hughes (BH)–the third largest oilfield services company in the world–buying/merging in Baker Hughes with GE’s Oil and Gas division just four months ago (see Baker Hughes and GE Complete Merger, World’s 1st Fullstream Co.). It didn’t take much for BH to say “yes” to GE’s proposal for marriage, coming off a botched attempt at marriage with Halliburton–a deal that the Obama DOJ destroyed (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). But now, four months into wedded bliss, GE has a new CEO and he wants out of the marriage. CEO John Flannery is looking to sell all of, or part of, GE’s majority stake in what is now called “Baker Hughes, a GE Company.” GE wants the nameplate on the door to just say “Baker Hughes, a Company.” Man oh man–four months and he already wants out of the marriage. What does that do to the self-esteem of the BH bride? Maybe GE can get an annulment? After all, it’s only been four months…
    Read More “4 Months After Buying Baker Hughes, GE Wants to Sell It”

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    IEA World Energy Outlook 2017 – U.S. Becoming Energy Dominant

    Each year the International Energy Agency (IEA) issues a special World Energy Outlook report. The 2017 edition was recently published. This latest edition of the Outlook says the global energy market will be completely reshaped over the next 25 years by four main forces: (1) the U.S. (because of shale) will become THE global oil and gas leader; (2) the cost of renewables will fall, meaning we’ll see more renewable energy; (3) electricity’s share of the energy mix will grow; and (4) China is going greener. We don’t know about that last one. Ever visited Beijing? Don’t go outside without a gas mask–the pollution is so heavy you literally can’t breathe. Anywho…Perhaps the biggest force is the first one. In addition to leading the world in oil and gas production, the U.S. will become the world’s largest LNG exporter in the next few years–by the mid-2020s according to IEA. That changes everything. Even with the rise of natgas (via LNG) and renewables over the next few decades, IEA says it’s still too soon to hold a funeral for oil. Global oil demand will continue to grow year in and year out through the forecast period (all the way to 2040). Tell us again, green Nazis, how renewables will take over the world within a generation. (We just picked ourselves up off the floor from laughing so hard.) Oil and natural gas are the primary sources of energy for the world, and they will be after everyone reading this is long dead…
    Read More “IEA World Energy Outlook 2017 – U.S. Becoming Energy Dominant”

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    63K Gal. Brine Spill at Inflection Well Pad in Lycoming County

    Approximately 63,000 gallons of treated brine (naturally occurring, very “salty” water that comes out of a well long after it’s drilled) spilled in an accident at an Inflection Energy well pad in Eldred Township, Lycoming County, PA, on Monday. Inflection blames a contractor and operator error for the spill, which happened after an already-full tank was overfilled. Some of the brine (no word on how much) reached a nearby unnamed creek that flows into the Loyalsock Creek. However, testing done on the Loyalsock shows no presence of contamination. The Loyalsock flows into the Susquehanna River, and the Susquehanna is used as a public drinking water source–hence the concern. There are no warnings to public drinking water operations along the Susquehanna because there is no problem to report. Now comes an investigation, and no doubt fines, for the accident. Here’s what we’re able to find out about the episode–an occurrence so rare it’s newsworthy when it happens…
    Read More “63K Gal. Brine Spill at Inflection Well Pad in Lycoming County”

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    Williams Files FERC Appl for Transco “Gateway Expansion Project”

    Yesterday Williams filed an application with the Federal Energy Regulatory Commission (FERC) to upgrade certain facilities in New Jersey along the Williams mighty Transco Pipeline, in order to flow an extra 65,000 dekatherms per day (or 65 million cubic feet) of natural gas to a couple of utility companies that have already signed on the dotted line as customers. The project is called the Transco “Gateway Expansion Project” and will cost roughly $85 million. The upgrades include a new compressor unit at Transco’s existing Compressor Station 303 in Essex County, NJ, a new valve and electric transformer also in Essex County, and equipment upgrades at a metering station in Passaic County, NJ. Both PSEG Power and UGI Energy Services have signed up to receive the extra gas–to be distributed to their customers in the region. The extra 65K dekatherms that will flow because of the upgrades is enough natural gas to meet the daily needs of ~300,000 homes. Here’s the lowdown on this latest Williams project…
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    PA Rep. Garth Everett Explains Severance Tax Comments to MDN

    PA Rep. Garth Everett

    Earlier this week MDN ran a story (and our response) highlighting what appears to be a change in position by Pennsylvania Rep. Garth Everett, Republican from Muncy (Lycoming County), PA, on the issue of a severance tax (see Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap). Everett had spoken to the local Williamsport Sun-Gazette and the resulting article quoted Everett as saying he, “feels the time has come for the gas industry to pay a tax on production costs.” The article also said that he is, “fine with a [severance tax] measure that doesn’t transfer the tax to landowners.” Which led us to chide Everett–someone we’ve long admired. Folks around Lycoming County, where Marcellus drilling is big business, read the Sun-Gazette article and the MDN response and began calling Everett to ask him about his sudden change. Everett contacted MDN, requesting a call to clarify what he did–and did not–say to the Sun-Gazette. MDN is happy to report that we now have the full story, and feel much better, about Everett’s position on the severance tax. Here’s a summary of our conversation with Rep. Garth Everett…
    Read More “PA Rep. Garth Everett Explains Severance Tax Comments to MDN”

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    EQT’s 4-Pronged Strategy for Defeating Corp Raider Jana in Rice Deal

    On Monday, Rice Energy was merged into EQT, creating the largest onshore natural gas producing company these United States (see Out with the Old: Rice Energy Sign Comes Down Day of EQT Merger). The $8.2 billion deal was first announced back in June (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). There was plenty of drama along the way–primarily opposition to the deal by evil corporate raider Jana Partners, in collusion with Atlas Energy (see Proxy Fight: Jana Partners, Atlas Tries to Stop EQT/Rice Deal). Another corporate raider, D.E. Shaw, piled on too, but at least they supported the deal to merger Rice into EQT (see Under Pressure, EQT Moves Up Timeline to Explore Splitting Co.). You know we loathe corporate raiders. They buy enough stock in a company to get a board seat, then agitate, forcing the company to layoff people and sell assets–all in a bid to make the stock price pop so they can sell their shares at a handsome profit and move on to the next victim. Disgusting organizations and disgusting people. Jana was the primary opponent to the EQT/Rice deal. Jana was fresh off from helping Amazon take over the Whole Foods grocery store chain. Yet somehow EQT was able to fend off Jana’s efforts against their company. How did they do it? That was the subject of a recent post on the Seeking Alpha investor’s website. Here’s a fascinating look at the strategy EQT used to fend off an evil corporate raider…
    Read More “EQT’s 4-Pronged Strategy for Defeating Corp Raider Jana in Rice Deal”

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    PA DEP Sec. Visits Snyder County Gas-Fired Power Plant; 2nd Plant?

    Yesterday Patrick McDonnell, Secretary of the Pennsylvania Dept. of Environmental Protection, went on a field trip and took a tour of the Panda Power Funds Hummel Station natural gas power plant site in Synder County. In February 2015, Panda announced a joint venture with Sunbury Generation to build a whopping 1,124-megawatt plant on the site of a recently retired coal-fired plant near Shamokin Dam in Snyder County (see Panda Power Building 3rd Marcellus-Fired Electric Plant in PA). Since that time the project has made steady progress and is now 88% complete. Panda said on the tour yesterday it expects to complete the plant and begin full operations in February of next year–just a little over three months from now. UGI has already built a 34-mile pipeline to feed the plant (see UGI Ready to Begin Flowing Gas via $150M Sunbury Pipeline in PA). Sec. McDonnell is tickled pink (or should we say natgas flame blue) with the project, and said so yesterday. Perhaps the biggest news to come from the tour yesterday is that Panda and Sunbury Generation have partnered for a second gas-fired power plant–right next door to the Hummel Station plant…
    Read More “PA DEP Sec. Visits Snyder County Gas-Fired Power Plant; 2nd Plant?”

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    PJM Double Talk: Grid Operator Floats Plan to Favor Nukes & Coal

    We’re wondering if anyone else smells a tad bit of hypocrisy with this one. In March, PJM Interconnection–the regional transmission organization (RTO) that operates the electric grid in all or parts of 13 states and the District of Columbia (including PA, OH and WV), released a study saying even with fewer coal plants producing electricity, PJM’s electric supplies–using more and more natgas and renewables–will be just fine (see Is PJM Electric Grid at Risk by Using More NatGas? Study Says No). Then just last month, PJM said DOE Sec. Rick Perry’s plan to favor electricity from nuclear energy plants and coal, in the name of “grid reliability,” is not needed (see Appalachian Grid Operators: We Don’t Need Trump’s Reliability Plan). But yesterday PJM turned around and released their own plan…which does just that! PJM published “Proposed Enhancements to Energy Price Formation” (full copy below) to set rates that supposedly more accurate reflect the contributions “fixed” electric producers like coal and nuclear make to the grid. That is, PJM is proposing changes to the pricing scheme that will cause a 2-5% increase for all electric rate payers in PJM–in the name of grid reliability. They want to deliver on Trump’s aim of grid reliability, but do it in a different way (with the same result of higher prices for everybody)…
    Read More “PJM Double Talk: Grid Operator Floats Plan to Favor Nukes & Coal”

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    Antis at DRBC Meeting Act Like Children, Demand Total Frack Ban

    We told you back in September that the obsequious members of the Delaware River Basin Commission (DRBC) will obey their radical environmental masters by voting to move forward with a permanent ban on fracking in the Delaware River Basin (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The form the final ban language will take has yet to be delivered–it’s due by Nov. 30th. However, the DRBC isn’t singing from the same song sheet as the radicals at THE Delaware Riverkeeper. A total frack ban isn’t good enough for the nutters. You see, they don’t like language in a draft resolution they’ve read that would allow frack wastewater to be hauled/disposed of inside their precious Delaware River Basin playground (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). The DRBC held a regular meeting yesterday, and the nutters showed up in force–behaving like the children-in-adult-bodies they are. There were, “About two dozen protestors, some of them with cloth gags in their mouths,” protesting at the meeting, calling on board members to not only ban fracking, but ban any kind of water use in the basin related to it. Here’s an account of what happened, and what lies ahead…
    Read More “Antis at DRBC Meeting Act Like Children, Demand Total Frack Ban”

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    NAACP Claims Atlantic Coast Pipeline is Racist, Harms Blacks Most

    We find it particularly offensive when a liberal/leftist group, like the National Association for the Advancement of [Liberal] Colored People, or NAACP, declares a pipeline project to be racist. The far-left organization made the outrageous claim, in a report they issued yesterday called “Fumes Across the Fence-Line: The Health Impacts of Air Pollution from Oil and Gas Facilities on African American Communities” (full copy below), that Dominion’s $5 billion 594-mile Atlantic Coast Pipeline (ACP) will force black people in low income communities in eastern North Carolina to bear “more than their fair share” of the so-called “risks” posed by the pipeline. ACP is a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The Federal Energy Regulatory Commission (FERC) issued a final approval for ACP in October (see FERC Approves Atlantic Coast, Mountain Valley Pipeline Projects). Since that time socialist/Democrat groups have marshaled their forces to oppose it. The Sierra Club is opposing it in court. Just yesterday we told you about a cadre of regional radical groups (backed by larger groups like Sierra Club) that have filed a petition with FERC opposing ACP (see Little Green Takes 1st Step in Suing to Block Atlantic Coast Pipe). The NAACP “report” is the latest in what appears to be a coordinated attack on the project by the usual suspects…
    Read More “NAACP Claims Atlantic Coast Pipeline is Racist, Harms Blacks Most”

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    ME2 Drilling in Delaware Co. Creates Small Sinkhole, Antis Swarm

    Sunoco Logistics Partners has had another “inadvertent return” (i.e. leak of drilling mud) while drilling underground in Delaware County, PA–in a Philly suburb. Every time it happens, no matter how little mud comes out of the ground (even less than a gallon), extremist antis jump up and down and declare an environmental holocaust. What makes this most recent episode different is that a sink hole has opened up near where the drilling mud and water came out of the ground. Not a good situation as the sink hole is not far from a home. The homeowner is not pleased. However, the homeowner is an anti, which makes it even worse. As soon as the mud came out of the ground and the hole appeared, the homeowner called in a swarm of other antis, supposedly to “document” the situation. They were really there to obstruct Sunoco workers who were trying to clean it up and prevent any further damage. Because the antis wouldn’t move their rear-ends out the way, Sunoco had to call in the police to move them. The anti homeowner got all hot-and-bothered that Sunoco had the nerve to call the cops on his anti buds. So far we’ve only found one mainstream media article about the episode, which is quite biased against Sunoco…
    Read More “ME2 Drilling in Delaware Co. Creates Small Sinkhole, Antis Swarm”

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    CELDF Continues to Agitate Against Indiana, PA Injection Well

    We previously reported on the story of two Pennsylvania towns that were either hoodwinked, or perhaps willing led astray, by the radical Community Environmental Legal Defense Fund (CELDF) into passing (now overturned) bans on fracking and injection wells in their towns–Highland Twp (Elk County) and Grant Twp (Indiana County). The two townships thought they would do an end-run around the state’s authority to issue permits for two injection wells, one in each township, by re-incorporating under so-called home rule charters. The towns essentially declared themselves independent of the state for a variety of matters, including oil and gas permits, which the PA state constitution clearly says is a function of ONLY the state Dept. of Environmental Protection. In March, the DEP issued final permits to each town, and at the same time sued each town to get those portions of their home rule charters, dealing with oil and gas, overturned (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). The towns agreed to “stand down” and, during their lawsuits, not oppose the DEP’s permits for the injection wells (see 2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells). We thought that would be the end of it. But no, it seems in Grant Township the so-called leaders of the town continue to be brainwashed by the CELDF. In May, Grant’s attorneys filed a counter-claim against PA asking Commonwealth Court to recognize a sort-of extra-judicial set of rights the town can exercise over top of, or in addition to, state laws (instead of their previous position of trying to replace state laws). Unfortunately the judge is willing to give them some rope. Here’s an update on the CELDF anarchist-backed challenge happening in Grant–a threat to our very Constitutional form of self-government…
    Read More “CELDF Continues to Agitate Against Indiana, PA Injection Well”

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    WV DEP Secretary Issues Letter Explaining MV Pipeline Decision

    In March, the West Virginia Dept. of Environmental Protection (WVDEP) issued a federal water crossing permit for the Mountain Valley Pipeline (MVP)–a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA (see WV DEP Grants Mountain Valley Pipeline Water Crossing Permit). In June, a group of profoundly radical “environmental” organizations filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit against the WVDEP for doing their job issuing the permit (see Radicals File Lawsuit Against WV DEP for Approving MV Pipeline). Because of the pressure of that lawsuit, WVDEP caved and reversed their decision in September, rescinding (called “vacating”) the permit for MVP (see Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit). The WVDEP said they would “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” The 4th U.S. Circuit Court of Appeals upheld WVDEP’s decision and granted the agency’s motion to invalidate the previous certificate they granted the project (see Court Backs WVDEP Move to Cancel Permits for Mountain Valley Pipe). Then earlier this month, in yet another 180 degree about face, WVDEP announced it has “lifted the suspension” of the MVP stormwater permit–and that the agency has decided to waive the permit, MVP has no need to get it before beginning construction (see WVDEP Reverses, Waives Water Permit for Mountain Valley Pipeline). Since that time WVDEP has faced withering criticism from antis, accusing the agency of abandoning their oversight of the project. On Monday, WVDEP Secretary Austin Caperton issued a letter to agency staffers (and to the public) to explain the agency hasn’t given up anything–that instead they have opted for a different type of oversight of the MVP project. We have to confess, it’s a very good letter and explains a lot. Bottom line: WVDEP is still very much large and in charge when it comes to overseeing impacts from the project on WV’s streams and rivers…
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