Industrywide Issues

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    Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet

    Rabidly anti-drilling organizations like the Philadelphia-based Clean Air Council (CAC) have been using the deep pockets of their contributors to stir up dissent against Sunoco’s Mariner East 2 NGL pipeline, particularly in towns in the Philly orbit (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?). CAC has towns like Middletown (Delaware County) so agitated, Middletown’s town council foolishly voted to allocate $100,000 out of $1.8 million the town received for leasing rights-of-way for the pipeline to assess risks and create an emergency response plan for the pipeline. Sunoco is politely telling Middletown–you’re flushing 100 grand down the toilet. Federal guidelines already provide most if not all of the information (and planning) required to protect the good citizens of Middletown. So why is the town council throwing good money away?…
    Read More “Mariner East 2 Tells PA Town: You’re Flushing $100K Down Toilet”

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    Proposed VA Law Would Protect Frack Chemical Trade Secrets

    We have to chuckle. It was just two months ago, in November 2016, that Virginia Gov. Terry McAuliffe approved changes to environmental regulations that requires “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning” (see Virginia Adopts New Frack Chemical Regs – Fracking to Begin?). In other words, drillers would have to disclose all fracking chemicals. While leftie Big Green groups love the new rules, the drilling industry set about to ensure trade secrets (exact combinations of chemicals) can’t be discovered by using Freedom of Information Act laws. Two new bills have already been introduced in the Virginia legislature this year–House Bill (HB) 1678 HB 1679 (copies below)–that will ensure trade secrets are kept safe. Big Green groups like the Southern Environmental Law Center are having a cow, claiming death and destruction await if the bills are passed…
    Read More “Proposed VA Law Would Protect Frack Chemical Trade Secrets”

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    What Do Kitty Litter and Shale Drilling Have in Common?

    GN Shale Shaker – Mini Mud Recycling System

    This is kind of an offbeat story for a Friday. What do kitty litter and fracking have in common? It’s not a trick question! They both use something called bentonite. Over 90% of all bentonite mined is mined in the U.S. Some half of all bentonite worldwide (found in volcanic ash) comes from one state: Wyoming. Bentonite, which is nontoxic, is called the mineral of 1,000 uses: “It clarifies wine and other alcoholic beverages, forms an impervious liner to keep landfills from leaking, removes ink during paper recycling, and goes into a slew of homeopathic remedies.” However, the two biggest uses for bentonite are (yep) kitty litter and drilling mud used to drill conventional and unconventional (shale) oil and gas wells. Bentonite keeps the drill bit cool and carries cuttings (dirt and rock chips) to the surface. You’ll find big tanks full of the stuff sitting on drill pads. Drilling mud gets recycled on location…
    Read More “What Do Kitty Litter and Shale Drilling Have in Common?”

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    Witch Hunt: Leading Climate Scientist Resigns from Georgia Tech

    Regardless of what you think about so-called man-made global warming, you would think that scientists should be allowed to express their views on the topic without being hunted down and burned at the stake like a witch, reputationally speaking. Yet if a climate scientist dares to express misgivings about the actual data behind global warming, that is exactly what happens. Dr. Judith Curry, a highly respected climate scientist, recently resigned her tenured position at Georgia Tech–because of climate witch hunters. Dr. Curry started out as a man-made global warming true believer, but was shocked at the “Climategate” emails that show researchers with the Climatic Research Unit (CRU) at the University of East Anglia were intentionally making up the numbers in an effort to prove their theories. False data. Lies. Distortions. Dr. Curry investigated and questioned climate orthodoxy, and for that, she has been hounded out of Georgia Tech. What is wrong with this picture? When did science become politics? When did simply asking tough questions become the basis for destroying someone’s reputation?…
    Read More “Witch Hunt: Leading Climate Scientist Resigns from Georgia Tech”

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    Potter Twp Inches Closer to Approving Permits for Shell Cracker

    In December the Potter Township Board of Supervisors convened a public hearing on the proposed Shell ethane cracker plant–to be built in Potter Twp–that ended up going on for 10 hours (see Potter Twp Declines to Approve Permits for Shell Cracker, For Now). The intent was to approve Shell’s request for permits to begin construction on the multi-billion dollar ethane cracker plant. That didn’t happen. Instead, the supervisors decided to hold another hearing the following night. They did, and that hearing went for over an hour, in closed-door session. At the conclusion, the supervisors made a couple of requests from Shell, which Shell agreed to. However, the supervisors were still not ready to approve the permits and instead asked for more paperwork to be filed–by both Shell and the radical, anti-fossil fuel Big Green group Clean Air Council (from Philadelphia). The supervisors are certainly no rubber stamp for the cracker project. They are working hard to ensure area residents are protected when (not if) it gets built. But that’s not good enough for radical, anti-fossil fuel nutters who (irrationally) want nothing to do with natural gas. The supervisors held another meeting last night and a small group of antis attended with preprinted signs. One sign said “Deficient = DENY.” The other said, “Disaster Decision.” The first sign was flashed as supervisors tried to conduct their business. When the supervisors finally held a vote to ask the town attorney to draw up an official document to approve the cracker, the antis got mouthy (as they always do) and flashed the other sign. Amidst the shouting by antis, one supervisor asked for order in the room. One horse’s rear-end shouted, “Maybe the public wants disorder.” Here’s how it went last night…
    Read More “Potter Twp Inches Closer to Approving Permits for Shell Cracker”

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    EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine

    In October 2014 the Pennsylvania Dept. of Environmental Protection (DEP) fined PA driller EQT $4.53 million for a leaky wastewater impoundment in Tioga County, PA (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). While EQT did not say there wasn’t a problem with leaks at the site, they did say the way the DEP calculated the fine is unreasonable and arbitrary. In fact, EQT says the DEP levied the fine and took EQT to court because a few weeks prior EQT had sued the DEP over a different matter. EQT appealed the fine and the case to PA Supreme Court and a year later the high court handed EQT a “procedural victory” by saying EQT has a point about the manner in which the DEP is calculating the fine (see PA Supreme Court Gives EQT “Procedural Victory” in $4.5M Fine Case). The Supreme Court sent the case back to a lower court, PA Commonwealth Court, for follow up work. The work is done and EQT has won. A three-judge panel ruled that the method the DEP currently uses to assess fines–by how many days pollution lingers, instead of by how many days the initial release of pollution lasted–is not legal nor common sense. The judges said such a method in fining, “would result in potentially limitless continuing violations.” Under the old way of calculating fines, the DEP was considering upping the fine on EQT to an insane $157 million. Calculating it under the new way will mean a fine of around $120,000. This is a major victory for EQT and a reigning in of egregiously overzealous state regulators…
    Read More “EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine”

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    USFWS Pulls the Trigger and Lists Bumble Bee as Endangered

    Rusty patched bumble bee

    As the ignominious rule of Barack Hussein Obama draws to a close on Jan. 20, government agencies that are part of the Executive Branch, like the EPA and the U.S. Fish and Wildlife Service (USFWS), continue to issue “midnight” rulings and edicts that will have tragic consequences–until Trump arrives and reverses it (hard to do, but not impossible). We’ve written before about the thuggish nature of USFWS. They are a (police) force unto themselves, kind of like the old East German Stasi. The USFWS is responsible for recommending and listing varies species, empowered to do so under the Endangered Species Act (ESA). They have WAY too much power under dictatorial rulers like Obama. On September 22, 2016 the USFWS published a proposed rule to list the rusty patched bumble bee (Bombus affinis) as “endangered” under the ESA. The rusty patched bumble bee is found in the Midwest and eastern parts of the U.S. If it gets listed, it will have SIGNIFICANT impacts on drillers and midstreamers (see “Endangered” Bumble Bee May Slow/Stop O&G Projects in Northeast). Well, with just a few days left in Obama’s reign of terror, they’ve pulled the trigger and done it. The USFWS has just listed the lowly bumble bee as endangered…
    Read More “USFWS Pulls the Trigger and Lists Bumble Bee as Endangered”

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    Details on Newly Announced Trumbull Energy Center Electric Plant

    Yesterday MDN ran an important story about 10 proposed (or already under construction) Utica Shale gas-powered electric plants planned for Ohio (see List of 10 Utica-Powered Electric Plant Projects Coming to Ohio). Tucked in the list of 10 projects is a brand new project, officially announced just yesterday, in Trumbull County. MDN readers already know about this project. Last June, Massachusetts-based Clean Energy Future broke ground on their $800 million, 940-megawatt Utica gas-fired electric plant in Lordstown (Trumbull County), OH (see Lordstown Energy Center Breaks Ground on $890M Electric Plant). Construction is under way and the plant will go online in 2018. In February of last year, MDN reported that the owner of the Lordstown Energy Center project, Clean Energy Future, was considering building a second plant at the same site (see Lordstown, OH May Get Second Utica Gas-Powered Electric Plant). The rumor was correct. In November, one of the companies partnering on the project, Fluor Corporation, spilled the beans and announced the second power plant, to be called the Trumbull Energy Center, would indeed get built. However, the project’s main sponsor, Clean Energy, has been mum on the project–until now. Yesterday afternoon the project was officially announced. We have the particulars on this new, second power plant that will be bigger than its older twin…
    Read More “Details on Newly Announced Trumbull Energy Center Electric Plant”

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    Maryland Democrat Lawmakers Continue to Torpedo Fracking

    Maryland is a lot like New York–populated with lefty liberals who love to tell other people how to live their lives. Maryland went through a years-long process, just like New York, and eventually released what would likely be the strictest drilling regulations in the nation, in late 2014 (see Fracking in Maryland (!) in 2015? Quite Possibly). On his way out of office, then-Gov. Martin O’Malley (a Democrat) published the regs and prepared the state to frack (see Maryland Gets Ready to Frack! Gov O’Malley Files New Regulations). But then the Maryland legislature passed a temporary moratorium which the newly elected Republican Governor, Larry Hogan, allowed to become law (see Maryland’s Pusillanimous Gov Allows Frack Moratorium to Become Law). Hogan and the Maryland Dept. of the Environment (MDE) returned with more tweaks which tightened the proposed regs even more–to the point no one would want to drill and frack anyway. But still the crazies objected (see Maryland Holds Hearings on Fracking, Crazies Turn Out to Complain). Maryland legislators, almost all of them liberal Democrats, want to ensure there is never any fracking in Maryland. So they’ve they’ve placed a “temporary” hold on new regulations that allow fracking. The new General Assembly kicked off its 2017 session yesterday, and while the House and Senate are quibbling over what to call it (a ban or a moratorium), one thing is clear: Maryland Democrat legislators are out to torpedo fracking in Maryland…
    Read More “Maryland Democrat Lawmakers Continue to Torpedo Fracking”

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    Obama’s DOE Secretary Politicizes Science on his Way Out the Door

    As is so often the case, when leftists/liberals claim they are doing one thing, it is, in fact, the opposite they are doing. Case in point: Obama’s Dept. of Energy (DOE) Secretary Ernest “hair” Moniz has released an 11th hour “scientific integrity” policy for the DOE that supposedly inoculates and protects “real” scientists who work for the agency from politics–allowing them to freely vomit their political, whoops, scientific views whenever and wherever they want, without fear of retribution or losing their job. What it does is to set up a situation where the incoming Trump Administration (specifically Rick Perry, the new DOE Secretary) are handcuffed to a bunch of leftists in the department–people who insist on the fairy tale of man-made global warming. If Perry wants to clean house, there will be weeping and wailing and gnashing of teeth, along with lawsuits that it violates agency policy. This is a typical sleazy move by the Obamadroids to dirty things up before they leave town–scorched earth policy. In case you think we’re engaging in hyperbole, the Union of (Liberal) Concerned Scientists are “thrilled” with the new policy. Need we say more?…
    Read More “Obama’s DOE Secretary Politicizes Science on his Way Out the Door”

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    Electricity Prices Fell in 2016 – Thanks to Shale Gas

    The U.S. Energy Information Administration (EIA) is fresh out with analysis of wholesale electricity prices in 2016 and finds electric prices were down for the year primarily because of the low price of natural gas–and the switching currently under way from coal to natgas. EIA says for the first 10 months of last year electric generating plants paid an average of $2.78/Mcf (thousand cubic feet) for natgas–down 17% from the same period in 2015. Because of the ongoing switching from coal to natgas, EIA says electricity generated from natgas power plants rose 6% in the first 10 months compared to the same period a year earlier. The truly astonishing factoid from EIA: “Natural gas was the primary source of U.S. electricity generation (when measured on an annual basis) in 2016 for the first time.” Here’s the full EIA analysis…
    Read More “Electricity Prices Fell in 2016 – Thanks to Shale Gas”

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    List of 10 Utica-Powered Electric Plant Projects Coming to Ohio

    Note: Thanks to our trusty fact-checker, Jim has fixed a few numbers below. Had a wrong decimal!

    Here’s an interesting number: 9,805. That’s how many megawatts of electricity will be produced each and every hour by Utica Shale-powered electric plants if 10 announced projects get built in Ohio. To put it in perspective, 9,805 megawatts is enough to power 9.8 million homes, if the power runs continuously. Ohio’s population is 11.5 million people living in 4.4 million households. Obviously the plants don’t run at full tilt 24/7/365. The U.S. Energy Information Administration reported in 2015 that combined-cycle natgas electric plants ran at an average of 56.3% of the time. Where are we going with this? Those 10 plants, if they all get built, have the potential to use a maximum (24/7/365) of 98 million cubic feet (MMcf) of Utica Shale gas each and every hour. That’s about 0.1 billion cubic feet (Bcf) per hour. But let’s assume the plants all average running times of 56.3%. That’s still 55 MMcf/hour, 0.05 Bcf/hour. There are, last time we checked, 24 hours in a day, which means over the next several years, as these plants go online, these 10 electric plants alone will sop up a huge 1.2 Bcf of Utica gas per day. The Utica, right now, is producing something like 4.2 Bcf/d. Our point: electric generation is a very important new market for both Utica and Marcellus gas. Below is the list of the 10 natgas electric generation projects announced for Ohio, complete with name, location, megawatts produced and status of the project…
    Read More “List of 10 Utica-Powered Electric Plant Projects Coming to Ohio”

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    PA Gov Wolf Asks for Severance Tax 3rd Year in a Row

    Pennsylvania Gov. Tom Wolf is…what adjective can we use? Recalcitrant. Stubborn. Pigheaded. Stupid. Perhaps all of the above. Wolf is clearly in over his head and the most ineffective PA governor in more than a generation. When he assumed office in 2015, he floated a budget calling for a new 5% severance tax on the Marcellus industry–a tax which even his supporters admitted would be closer to 17% (see PA Official Admits Wolf Severance Tax Highest in Nation @ 17.3%). Such a tax would literally kill the entire industry. That budget deal was a disaster. Wolf held up the budget for nine months into the new budget year, and finally caved (see Hubris: PA Gov. Wolf Caves on Budget, then Claims He Won). Beaten but unrelenting, Wolf came back last year with yet another severance tax proposal–this time an astonishing 6.5% tax (see More on Wolf’s New 6.5% Severance Tax – What Could of Been). What a putz. Yes, he lost again. Republicans held firm and he dropped his demand. As we’ve chronicled repeatedly, Wolf insists on such a tax because of his quid pro quo payoff to teachers unions for their support in getting him elected. Sleazy. PA already has a higher tax rate on natural gas than other oil and gas producing states. PA has an impact fee plus a corporate income tax. The two together are, on average, higher than the severance tax rates in Texas, Oklahoma, Louisiana, Colorado and other o&g states. We’ve already seen big Marcellus drillers leave and go to other states. A severance tax will greatly reduce the amount of drilling in PA. So, it’s now Wolf’s third year and he is about to release another budget. And you will not believe it. This dolt is calling for a severance tax again! Third year in a row! But he won’t say how high of a tax, at least not yet…
    Read More “PA Gov Wolf Asks for Severance Tax 3rd Year in a Row”

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    New Law Blocks Anti-Drilling Ballot Measures in Ohio

    Enough is enough. As MDN reported last June, anti-drilling zealots in Youngstown, OH filed a petition to place a frack ban resolution on the November ballot–for the 6th time (see Brain Dead: Youngstown Antis File Petition for 6th Frack Ban Vote). The petition held up, there were just enough signatures. And once again in November, as the five times that preceded it, Youngstown voters rejected the misnamed, so-called Community Bill of Rights ballot measure–yet another humiliating defeat for the PA-based Community Environmental Legal Defense Fund (CELDF) which is behind the measure (see Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time). The measure was voted down by an 11-point margin (i.e. landslide against it). The radicals of the CELDF are behind most, if not all, such measures throughout Ohio and Pennsylvania (see our CELDF stories here). Like the six times before, recalcitrant antis say they will try yet again, and keep trying. Except in Ohio they now won’t get that chance. Ohio legislators are heard the pleas of local municipalities that are spending big money (in legal fees) dealing with these patently illegal ballot measures. So the legislature passed House Bill (HB) 463 in December (full copy below)–a measure that says you can’t add a ballot measure (like home rule for oil and gas regulation) that expressly contradicts state law. Gov. John Kasich signed the bill on Jan. 4–meaning no more Youngstown ballot “Community Bill of Rights” measures on the ballot…
    Read More “New Law Blocks Anti-Drilling Ballot Measures in Ohio”

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    Look Ma, No Pipeline! Lycoming County Co. Begins CNG Shipments

    In June 2015 MDN told you about a really cool plan by a Pennsylvania company to establish a CNG (compressed natural gas) terminal in Lycoming County, PA as a way to get natural gas to manufacturers, fleets and businesses where no pipeline infrastructure now exists (see Getting Marcellus NatGas to Customers without Pipelines). Compass Natural Gas Partners, based in Camp Hill, PA, said they would build a first-of-its-kind CNG terminal in Lycoming County that will accept Marcellus Shale gas in, clean it up (get rid of the water in it), compress it to 3600 psi, and load it into specially designed trailers that haul it to customers. And then the project went quiet for the next year and a half. Except it wasn’t really quiet. Compass, with a tag line on their website that says “All We Need is Road,” built the terminal and it went fully operational in December. Trucks are now servicing customers in Cambria and Mifflin counties…
    Read More “Look Ma, No Pipeline! Lycoming County Co. Begins CNG Shipments”

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    EQT Closes on Trans Energy Deal; Investment Bank Makes Big Boasts

    In October EQT announced a deal to buy Trans Energy, Inc., a public pure-play driller in the Marcellus in West Virginia, which will become a wholly-owned subsidiary of EQT (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). EQT is also buying Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (in WV). The deal has now closed and investment bank Gordian Group is strutting around making some big boasts about their role in the deal. Gordian, via a press release issued yesterday, takes credit for keeping Trans Energy out of bankruptcy court and for soaking EQT on the purchase price. Here’s Gordian’s expert piece of self puffery….
    Read More “EQT Closes on Trans Energy Deal; Investment Bank Makes Big Boasts”