Industrywide Issues

  • | | |

    PA House Ctte Votes to Rename “Impact Fee” to “Severance Tax”

    The Pennsylvania House Environmental Resources and Energy Committee amended a bill yesterday that will rename PA’s impact fee to a “severance tax,” a move which really ticked off the high taxers in the legislature, and anti-drillers (most of them one and the same). The PA House came back into session yesterday and 25 House members (most of them Democrats) made a move to get a vote on a bill with a 3.5% severance tax. The Republican majority on the committee flipped things around and replaced that measure with a vote to rename the impact fee–as a way of illustrating that the industry IS ALREADY TAXED, JUST LIKE A SEVERANCE TAX, even if you don’t call it one. So, let’s just call it one! Brilliant! Of course there are differences between a severance tax and an impact fee–actually the fee is a better revenue generator than a severance tax. However, the point remains: the industry is already paying a high tax, and to slap another on top of it is suicide. Republicans on the committee got their point across…
    Read More “PA House Ctte Votes to Rename “Impact Fee” to “Severance Tax””

  • | | |

    Compression Training Schools in the Marcellus/Utica Region

    Looking for a good job in the Marcellus/Utica industry? You may want to consider a job working at a compressor station. You know, those big facilities that sit every 30-40 miles along pipelines to keep the gas flowing through them? According to an article in COMPRESSORtech2 magazine (yes, there’s a magazine devoted to it!), “Indications are that the gas industry is recovering from the latest slump and can expect slow, steady growth in the next 10 years.” There are several college-level programs in the Marcellus/Utica region that train workers for compressor stations. We have the list below, just in case you’re looking for a rewarding career, or career change…
    Read More “Compression Training Schools in the Marcellus/Utica Region”

  • | | | | | | | |

    Jefferson County, WV Hopes Hinge on Gas Pipe Under Potomac River

    Jefferson County, WV has been working for the last 30 years to get natural gas piped into the community. Jefferson is on the cusp of seeing that long-time dream turn into reality–if anti fossil-fuelers in Maryland don’t screw it all up. In April, MDN brought you the news that Columbia Pipeline (now owned by TransCanada) has filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in the Eastern Panhandle of West Virginia with the Columbia Gas Pipeline in Pennsylvania (see New 3.5 Mile Pipeline Project to Drill Under the Potomac River). The purpose of the Eastern Panhandle Expansion project is to deliver natural gas via local distribution channels (local utility Mountaineer Gas) to a new industrial facility in Berkeley County, WV, scheduled to open this fall, and to provide gas to other local businesses and residents in the Tri-State area. Most of the proposed pipeline crosses through a tiny sliver of Washington County, Maryland. The main “issue” with the project is that the pipeline will be drilled underneath the Potomac River, which serves as the border between WV and MD. That has radical anti-fossil fuelers in an uproar (see Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement). Here’s a look at the faces of those whose lives will be changed for the good by a short, 3.5 mile pipeline under the Potomac, IF…
    Read More “Jefferson County, WV Hopes Hinge on Gas Pipe Under Potomac River”

  • | |

    Manhattan Institute Report: Why America Needs More Pipelines

    The New York-based Manhattan Institute, a non-profit think tank with a mission “to develop and disseminate new ideas that foster greater economic choice and individual responsibility” recently released a new report titled, “The Energy Bottleneck: Why America Needs More Pipelines” (full copy embedded below). The 16-page report says that while America is enjoying an energy renaissance thanks to fracking, there is a growing energy bottleneck that is forcing oil and gas companies to turn increasingly to more “accident-prone and more expensive shipping alternatives, such as trucks, railroads, and tankers.” The report says to maximize the benefits of America’s energy renaissance, the Trump administration, Congress, and federal and state regulators should “prioritize expanding and upgrading the country’s inadequate pipeline infrastructure.” We agree! Here’s the latest from the MI calling for more pipelines…
    Read More “Manhattan Institute Report: Why America Needs More Pipelines”

  • | | | | |

    Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit

    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 (Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network) 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, last week the WVDEP caved and reversed their decision, rescinding (called “vacating”) the permit for MVP. The WVDEP says they will now “re-evaluate the complete application to determine whether the state’s certification is in compliance with Section 401 of the federal Clean Water Act.” Another victory for the forces of evil…
    Read More “Trouble for Mountain Valley Pipe: WV DEP Withdraws Water Permit”

  • | | | | | | |

    Ridgetop Capital Raises $200M to Invest in Marcellus/Utica Leases

    Ridgetop Capital Partners, founded in 2007 and headquartered in the Pittsburgh area, is a private institutional investment firm focused mainly on the oil and gas space. That is, they raise money from rich people (and businesses) and invest that money in projects which they closely watch and influence, hoping to make their money back with a generous interest rate. A LOT of private money funds oil and gas development–there is nothing new or novel about Ridgetop. However, what is new and novel is that the company has just closed on another round of fundraising–chasing $200 million through the door–which they will now use to buy natural gas mineral rights (i.e. leases) in the Marcellus/Utica. The company previously invested ~$130 million in our region’s shale, snapping up ownership in over 30,000 acres (most, perhaps all of it, in joint ventures with major M-U drillers). Where will Ridgetop likely invest to buy new acreage? They’ve given us a big clue…
    Read More “Ridgetop Capital Raises $200M to Invest in Marcellus/Utica Leases”

  • | | | | | | |

    WV Surface Owners Win Important Case Against EQT re Drill Pad

    A West Virginia Circuit Court case decided last week (by jury) found in favor of surface owners against a well pad constructed by EQT. The decision has far-reaching implications for not only surface owners and drillers, but mineral rights owners too. From the first time we read about so-called “joint development” legislation being promoted by the drilling industry in WV (back in February), we’ve not been fans (see More on WV’s Push for “Joint Development” Instead of Forced Pooling). In brief, there are a number of existing old leases in WV, signed before shale drilling began, that prevents drillers from drilling a horizontal well across an individual property boundary line–until a new lease is signed. Joint development says if the driller already owns the leases on all adjoining properties they want to combine into a drilling unit, they can do so without signing a new lease. The proposed joint development law seemed to us to be a way for drillers to avoid negotiating and paying more for new leases–which they should be willing to do! However, the case of Crowder and Wentz v EQT puts joint development in a new light for us. The case appears (to us) to be an abuse of power by surface owners against both drillers and mineral rights owners–by using the current prohibition against joint development. We certainly understand why surface rights owners would resist having a drill pad on their property, however, that’s life. They bought land (or inherited it, etc.) that doesn’t have mineral rights attached. Under existing WV law, a well pad can be drilled, taking 10-15 acres of the surface land (against the surface landowner’s wishes, but with compensation), in order to access the minerals under that specific piece of property. However, the court ruled last week in Crowder and Wentz v EQT that a driller cannot then use that same already-constructed well pad to further drill wells that access minerals under other, adjacent properties. Which in our book makes a strong case for a joint development law, to avoid this kind of misuse by surface landowners…
    Read More “WV Surface Owners Win Important Case Against EQT re Drill Pad”

  • | | | | | |

    NY DEC Grants Permit for Millennium Pipe Eastern System Upgrade

    The New York Dept. of Environmental Conservation (DEC) is tap dancing to explain why they refused to grant a water crossing permit for a 7.8-mile pipeline in Orange County to Millennium Pipeline Valley Lateral Project, yet a few days before that refusal they granted a water crossing permit to Millennium for the Eastern System Upgrade, which includes 7.8 miles of looping pipeline in yes, Orange County! The Millennium Pipeline stretches ~244 miles from Independence in Steuben County, NY to Buena Vista in Rockland County, NY. The Millennium, which is supplied by local production (much of it Marcellus Shale gas) and storage fields and interconnecting upstream pipelines, serves customers along its route in New York’s Southern Tier region and helps meet the energy needs of northeast markets. In August 2016, Millennium filed an application for what it calls its Eastern System Upgrade (see Millennium Pipe Asks FERC to Approve Eastern System Upgrade in NY). The ESU would add 7.8 miles of extra looped pipeline in Orange County, upgrade a compressor station in Delaware County, build a new compressor in Sullivan County and make some minor tweaks to metering stations in Rockland County. Just days before the DEC denied a water permit for the Valley Lateral Project (see Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline), the DEC issued the same permit for the much larger ESU project. The DEC denied Valley Lateral on the premise that the Federal Energy Regulatory Commission (FERC) had not done a proper job in evaluating the global warming potential of the new power plant that pipeline will feed. Yet the DEC saw no problem with bumping up capacity by 223 million cubic feet of natural gas flowing per day along the mainline Millennium, which the ESU project will do. Lucy! You have some ‘splainin to do! Aside from the flaming DEC contradiction, Millennium has just asked FERC to please hurry up a final OK of the ESU project, before the DEC changes it mind…
    Read More “NY DEC Grants Permit for Millennium Pipe Eastern System Upgrade”

  • | | | | | | |

    NY’s Critical Error in Denying Millennium Pipe for Power Plant

    On August 30th the New York Dept. of Environmental Conservation (DEC) issued a refusal to grant a water permit to Millennium Pipeline to build a tiny, 7.8 mile pipeline spur from the main Millennium Pipeline to an under-construction natural gas-fired electric generating plant in Orange County (see Corrupt NY DEC Denies Water Permit for 7.8 Mile Power Plant Pipeline). The electric plant will get finished either way, whether it’s fed by natural gas or, alternatively, by dirtier fuel oil. The DEC has blocked many (not all, but many) recently filed pipeline projects in the state–because of undue and corrupt influence from our governor, Andrew Cuomo. Cuomo seeks to appease his radical/left base. The DEC previously denied a water permit for the Constitution Pipeline, stating Constitution had not provided all of the required information the DEC needs to properly evaluate the project (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The DEC later refused a water permit for NFG’s Northern Access Pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). In the case of Northern Access, the DEC claimed they did have enough information, but in their opinion the project would do too much damage to Mom Earth. Both the Constitution and Northern Access projects are in court to try and overturn the DEC’s decision to block. However, in refusing Millennium’s tiny 7.8 mile pipeline to the Valley Energy Power plant, the DEC claimed the Federal Energy Regulatory Commission (FERC) didn’t do a proper job in evaluating the project’s impact on mythical man-made global warming. The pipeline will feed gas to an electric plant, and the DEC says the electric plant will produce air emissions that will help toast Mom Earth. A couple of top energy attorneys from the law firm Blank Rome explain how the DEC has made a critical error in judgment with their refusal of the Millennium project, a decision they say stands a “very high” chance of being overturned on appeal…
    Read More “NY’s Critical Error in Denying Millennium Pipe for Power Plant”

  • | | | | |

    No DRBC Frack Ban…Yet; A Look at DRBC Corruption & Incompetence

    Last week the rumor mill was hot with speculation that on Friday the Delaware River Basin Commission would release a draft document outlining their proposal to ban hydraulic fracturing in the Delaware River Basin permanently (see DRBC Secretly Working on Permanent Delaware Basin Frack Ban). Fortunately, that didn’t happen. But don’t start celebrating just yet. The rumors are still swirling. Apart from a single Associated Press article (run in dozens of newspapers), there has been no other coverage of this big news. Why is that? Why is mainstream media so uncurious about a potential DRBC frack ban? The person doing the real work on this story is MDN friend Tom Shepstone. Writing on his blog site Natural Gas Now on Saturday, Tom did a masterful job of chronicling the foibles of the DRBC–and he laid out how we got to where we are now, with a potential permanent ban. In a nutshell, landowners in Wayne County, PA sued to reverse a grievous error, challenging the DRBC’s authority to regulate fracking in the basin. That lawsuit, and the very real possibility that a decision will go against the DRBC, prompted radical environmental groups like THE Delaware Riverkeeper to push for a DRBC permanent ban. The effort for a permanent ban, which (for now) would only affect Wayne and Pike counties in PA, went into overdrive a few months ago. Here’s Tom’s excellent article, which will bring you up to speed and prepare you for when the news of a permanent ban eventually does break–possibly this week at the DRBC regularly scheduled meeting…
    Read More “No DRBC Frack Ban…Yet; A Look at DRBC Corruption & Incompetence”

  • | | | | |

    DRBC Secretly Working on Permanent Delaware Basin Frack Ban

    It was just yesterday that MDN highlighted a story written by friend Tom Shepstone on his Natural Gas Now website theorizing that the Delaware River Basin Commission, long influenced by big money coming from the Haas family via the William Penn Foundation and their surrogates, is planning to implement a full ban on fracking in the Delaware River Basin (see Tom’s story: Is the William Penn Foundation Planning a DRBC Ban?). Looks like Tom is a soothsayer. Elements of the William Penn cabal are leaking, like a sieve, news that the DRBC is about to introduce a permanent frack ban, which includes a ban in Wayne and Pike counties in Pennsylvania. The proposed ban may be introduced as early as today. We suppose the news shouldn’t surprise us, given that in July anti groups, including the William Penn lobbying arm Delaware Riverkeeper, hit the panic button (because of a lawsuit) and ramped up an effort to push a permanent ban (see Anti Groups Panic, Demand Govs Ban Fracking in Dela. River Basin). The big question is what will the prevaricating PA Gov. Tom Wolf do? He has mouthed support for a moratorium, but so far has not signed on for a permanent ban. Will he sell out all the way and now support a ban–screwing thousands of his own constituents? Who knows. Here’s the breaking news…
    Read More “DRBC Secretly Working on Permanent Delaware Basin Frack Ban”

  • | | | | |

    M-U Pipeline Co. Eureka Midstream Expands Line of Credit to $400M

    Eureka Midstream, which was once called Eureka Hunter (a subsidiary of Magnum Hunter Resources) has popped back up on the radar screen. Eureka, which operates exclusively in the Marcellus/Utica with ~200 miles of local gathering pipelines, announced yesterday it has expanded its line of credit from $225 million to $400 million, with an “accordion” option to further expand it to $500 million. Last time we wrote about Eureka (in December 2015), parent Magnum Hunter was looking to sell it off (see Magnum Hunter De-Listed from NYSE; Still Shopping Eureka Hunter). A lot has happened since that time. Magnum Hunter filed for and later emerged from bankruptcy, minus its colorful CEO Gary Evans (see Magnum Hunter Emerges from Bankruptcy with CEO Gary Evans Gone). During the bankruptcy process, Eureka was not sold but instead spun off into its own standalone company. Magnum Hunter, later renaming itself to Blue Ridge Mountain Resources, has remained a major customer for Eureka. Eureka says it will use the $400-$500M line of credit for “capital expenditures, financing permitted acquisitions, funding working capital, and general corporate purposes.” Here’s an update on Eureka, which has successfully charted a course away from former parent Magnum Hunter…
    Read More “M-U Pipeline Co. Eureka Midstream Expands Line of Credit to $400M”

  • | | | | | | |

    WB XPress Pipeline Gets Important USDA Approval for Natl Forest

    TransCanada’s WP XPress pipeline project has just scored an important permit from the U.S. Dept. of Agriculture (USDA) Forest Service that allows the project to move forward in the Monongahela National Forest. In Jan. 2016, Columbia Pipeline Group (now owned by TransCanada) filed a full, official application with the Federal Energy Regulatory Commission (FERC) for approval of the $850 million WB XPress Project (see Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA). WB XPress consists of two new compressor stations, 26 miles of pipeline replacement located along existing corridors (11.6 miles of it in Monongahela National Forest), and 2.9 miles of new pipeline in Virginia and West Virginia. The WB XPress Project will expand capacity of the Columbia Gas Transmission pipeline system in the region by 1.3 billion cubic feet per day (Bcf/d), linking Marcellus gas supplies to new markets. FERC issued a favorable environmental assessment for the project in March of this year (see FERC Gives Columbia WB XPress Enviro Thumbs Up). While the Forest Service has given its blessing, the project still needs a final approval from FERC before it can begin construction–something TransCanada asked for just last week. Here’s where things stand with the WP XPress project…
    Read More “WB XPress Pipeline Gets Important USDA Approval for Natl Forest”

  • | | |

    Philly RINO Proposes High-Tax PA Budget, Incl. a 3% Severance Tax

    We’ve written plenty about Philadelphia-area RINO (Republican In Name Only) State Rep. Gene DiGirolamo. In May DiGirolamo introduced yet another severance tax bill (see Tiresome: Philly RINO Rep Gene DiGirolamo Intros Severance Tax Again). Like a bad penny, Gene keeps turning up. Yesterday, without consulting Republican leadership (because, he said, they would have tried to talk him out of it), DiGirolamo introduced his own version of a plan to supply the missing funds to balance the state budget. Like all good Democrats, DiGirolamo’s plan is packed with tax increases, including (yes) a severance tax. Oh wait! He’s a Republican, not a Democrat. Or is he? In addition to slapping a 3% severance tax ON TOP OF the impact fee, DiGirolamo wants to raise the state income tax from 3.07% to 3.32%–a hefty 8.1% increase. Pennsylvanian’s won’t miss it, right? And besides, the teachers unions in Philly really want that money, bad…
    Read More “Philly RINO Proposes High-Tax PA Budget, Incl. a 3% Severance Tax”

  • | | | |

    Radical CCAN to Protest VA DEQ Against Marcellus/Utica Pipelines

    Radicals from the Chesapeake Climate Action Network (CCAN) say they will stage massive protests at several Virginia Department of Environmental Quality offices next week to protest against two Marcellus/Utica pipeline projects: the $5 billion Atlantic Coast Pipeline and $3.5 billion Mountain Valley Pipeline. Both projects have large segments crossing Virginia. CCAN says up to 1,000 people (mostly brainwashed college kids) will turn up to behave badly at DEQ office sites–using sit-ins, “prayer circles” (although Whom they pray to is unspecified) and sidewalk “rallies.” The DEQ is getting ready for the miscreants. The aim of the protests is to convince the DEQ to deny water crossing permits for the two pipeline projects. The DEQ has decided to let the U.S. Army Corps of Engineers handle the stream crossing evaluation, which doesn’t sit well with the radicals. They’re demanding the DEQ reassert authority in issuing the permits. Of course, the only outcome the radicals will accept is if the DEQ decides NOT to issue the permits. Is mob rule coming to the Old Dominion?…
    Read More “Radical CCAN to Protest VA DEQ Against Marcellus/Utica Pipelines”

  • | | | |

    Mahoning County Bans Frack Ban Measure from Nov Ballot in Youngstown

    In July MDN told you that puppets of the PA-based Community Environmental Legal Defense Fund (CELDF) have once again gotten enough signatures to put a so-called Community Bill of Rights (i.e. frack ban) ballot measure on the ballot this November in Youngstown, Ohio–for the 7th time (see Youngstown Frack Ban Vote on November Ballot – for 7th Time). The same people have tried six times before–and the ballot measure failed every single time. However, as we pointed out, this time is different. In addition to the usual no fracking, no pipelines pablum, this 7th petition has language that makes it legal to break the law. You read that right. If the ballot measure were to pass, and if an anti got it into her head to sit in front of a bulldozer that was about to clear ground for a wellpad, or dig a trench for a pipeline, the police would not be able to arrest and remove the anti. It would be within her rights to sit there and block legal, legitimate activity–all in the name of saving the planet. It would, in essence, legalize mob rule. The good news is that the Mahoning County Board of Elections has had enough of this nonsense. The Board voted to NOT allow measure on the ballot in November. The antis (with the help of Big Green money) are firing up lawsuits…
    Read More “Mahoning County Bans Frack Ban Measure from Nov Ballot in Youngstown”