Industrywide Issues

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    PA Gov Tom “Severance Tax” Wolf: America’s Most Liberal Governor

    The non-partisan website InsideGov, a site built and maintained by technology company FindTheBest, used public statements, press releases, campaign platforms and voting records to score each state governor’s view on important issues. InsideGov then used the data they collected to assign values for the most conservative political philosophy, and the most liberal. No lie–the single most liberal state governor in the United States is not Andrew Cuomo–he’s #5 in the list of most liberal. Nope. The single most liberal governor in these United States is (trumpet fanfare): Tom Wolf, from Pennsylvania. Wolf is ahead of the whack-a-doos in New York, Vermont, Connecticut and even Minnesoooota. Yeah, the same Tom Wolf who wants to steal the profits from Marcellus drillers to give to teachers’ unions to pay them back for voting him into office. That Tom Wolf. Most liberal. And what do the libs at Philadelphia Magazine write? (This is hilarious.) They write that even though Wolf walks like a liberal duck, quacks like a liberal duck, swims like a liberal duck–he isn’t really all THAT liberal…
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    FBI Investigates Death Threats Against PennEast Pipeline Workers

    We don’t want to broad-brush paint all anti-drillers opposed to pipelines, like the PennEast Pipeline, as whack-a-doos. But clearly some of them are–and some of them are potentially violent. It has just come to light that PennEast Pipeline received letters this past spring threatening to kill PennEast Pipeline employees. The FBI is investigating–talking to some of the whack-a-doos to ask them if they know about the letters…
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    Is Shale Wastewater Causing Radiation Spike in Ten Mile Creek?

    radiationfolo-clyde_mine2
    Click image for larger version – Tests continue on drainage from the Clyde Mine in East Bethlehem Township, Washington County, for radiation and bromide levels. The mine, which is abandoned, is the responsibility of the Pennsylvania Department of Environmental Protection. (Photo by Natasha Khan)

    Ten Mile Creek runs through Washington and Greene counties in southwestern Pennsylvania and is considered a “major tributary” to the mighty Monongahela River, a 130-mile-long river in north-central West Virginia and southwestern Pennsylvania. The Monongahela joins the Allegheny River to form the Ohio River at Pittsburgh. An abandoned coal mine, the Clyde Mine, sits near the Ten Mile Creek where the creek joins the Monongahela, and the abandoned coal mine (as many do) leaks acid mine water into the creek and ultimately into the Mon River. Anti-drillers suspect, apparently with no basis for doing so, that shale wastewater has been dumped in the Clyde Mine and is leaking out along with the acid mine water and is creating a radioactive hazard that could affect water in the Mon River used for drinking water sources. The PA Dept. of Environmental Protection (DEP) ran some initial tests in April 2014 and found ” high levels of radioactive materials and other chemicals typically related to Marcellus Shale drilling operations” according to the left-leaning news agency PublicSource. The DEP ran more tests in June of this year, but because the testing followed heavy rains, anti-drillers have already said they “won’t accept” the results from those tests. Anti-drillers love to cherry-pick their “science”. What’s really going on with Ten Mile Creek? Has there been, or is there still, illegal wastewater dumping going on at the Clyde Mine?…
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    PennEast Changes Route Where it Crosses Appalachian Trail

    This story is cool on many levels. Score another PR victory, and another clever re-route, for the PennEast Pipeline. PennEast, you may recall, is a $1 billion, 110-mile, 36-inch diameter natural gas pipeline that will run from Luzerne County, PA to Mercer County, NJ. It is vigorously opposed by Big Green groups like the nutty Sierra Clubbers and THE Delaware Riverkeeper. Some who oppose it have threatened violence (see today’s companion story). Why? Because the PennEast will flow that evil, nasty fossil fuel called natural gas. Can’t have that, you know. PennEast has made a course correction that is sure to cut down on the time it requires to get approved. The course correction is where the PennEast will cross the Appalachian Trail in Carbon County, PA. The course correction also lets the PennEast deliver cheap Marcellus Shale gas to a new electric generating plant being built by the Blue Mountain Ski Resort…
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    New England’s Obdurate (and Foolish) Opposition to Pipelines

    Yet another example (not that you need it) that most folks who oppose pipelines, and shale drilling, and anything to do with shale energy–do so because they irrationally hate fossil fuels. This latest example comes from the land of liberal lunacy–Massachusetts. Leigh Youngblood, director of the Mount Grace Land Conservation Trust, community organized a protest rally preceding a Federal Energy Regulatory Commission (FERC) scoping session on Wednesday in Greenfield, MA. The FERC scoping session was to hear about potential environmental impacts from the proposed Tennessee Gas Pipeline interstate project known as Northeast Energy Direct, or NED. Youngblood, true to lib Dem form, believes that Massachusetts should dump dirty fossil fuels and instead concentrate their “superior” intellects on using so-called alternative energy sources. Renewable energy is the future, dontchya know…
    Read More “New England’s Obdurate (and Foolish) Opposition to Pipelines”

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    Range Resources Chops 11% of Workforce (so Far) in 2015

    The low price drillers receive for natural gas, NGLs and oil, and the results those prices have on revenues for drillers, continues to take a big bite out of the industry. Companies, rightly or wrongly, reduce head count in order to keep the balance sheet less red than it otherwise would be. One of the easiest and quickest ways to improve finances at big companies is to cut head count. Two weeks ago CONSOL Energy laid off 10% of its workforce–some 470 people (see CONSOL Slashes 10% of Workforce – 470 Jobs Gone). Range Resources is latest to confirm company-wide layoffs. So far this year Range has cut 11% of its workforce. In May, Range laid off 41 people in the Marcellus/Utica region…
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    Protecting the Miracle of Fracking: NCPA Sounds Alarm on Bans

    The misguided attempt to ban or restrict fracking (i.e. using fracking in shale drilling) threatens our country’s economic health and even our security. So says a new video and map published by the non-partisan National Center for Policy Analysis (NCPA). The NCPA sounds the alarm on (yes) successful anti-fracking efforts that have “swept the nation.” We applaud the NCPA for not turning away or ignoring the successes our opponents have achieved. There are hundreds of local and state frack bans and moratoriums in place–choking our economic growth and making us less secure from petrostates that finance terrorism against the U.S. Have a look at the NCPA map (below) for an indication of just how widespread bans and moratoriums and other unnecessary restrictions on fracking have become…
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    Electric Grid & NE Pipeline Companies Get Up Close and Personal

    PJM Interconnection is a regional electric transmission organization that coordinates wholesale electricity for 13 states and the District of Columbia. PJM, headquartered in Valley Forge, PA, covers the electric grid in the Marcellus/Utica region, including PA, OH, WV, MD, KY and VA. It is the world’s largest competitive wholesale electricity market with 900 members serving 61 million people! In a clear signal just how important shale gas has become for electric generators, PJM yesterday announced yesterday an agreement (deal?) to work more closely with a group of the biggest pipeline companies in the Marcellus/Utica “to work more closely with each other to improve operational planning and address growing interdependence between the electric and natural gas industries”–at least through June 2016. Working more closely means sharing non-public information back and forth between PJM and the pipeline companies…
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    How Shale Gas May Change the Gasoline You Buy at the Pump

    Shale drilling may play an important role in the gasoline you purchase at the pump. No, not because compressed natural gas (CNG) will replace gasoline–that frankly isn’t happening any time soon. Other hydrocarbons come out of the ground along with methane–or what we call natural gas. Those other hydrocarbons are oil and NGLs–natural gas liquids. NGLs can be further separated into their component parts–ethane, pentane, propane and butane. It is butane that may play a role in the gasoline you buy at the pump. It all has to do with “alkylation.” Let us explain…
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    1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1

    U-TurnSomething really big is about to happen in the Marcellus/Utica region. Starting August 1, the Rockies Express Pipeline (REX), originally built from Colorado and Wyoming to Monroe County, OH to bring natural gas from west to east, will reverse the flow for a large and important section of the pipeline. On August 1, the section of REX from Monroe County, OH to Mexico, MO will reverse the flow and carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. This flow reversal has the power to a) increase prices northeast drillers receive for their natural gas, and b) lower the cost of natural gas for consumers (and industrial companies, and electric generating plants, etc.) in places like Chicago. It is a win/win scenario. It is so important, and will have such a profound affect on natgas prices in the Midwest, that our friends at NGI’s Daily Gas Price Index have created a “REX Tracker”–a free daily chart updating the price of natural gas along the REX’s Zone 3 section…
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    2 Pipelines Will Raise Gas Sale Price by $1 for Range Resources

    As we told you yesterday, Range Resources is excited about two pipeline projects that will go online soon–Spectra Energy’s Uniontown to Gas City (U2GC) Project and Mariner East I–Sunoco Logistics’ NGL pipeline from western PA to the Marcus Hook refinery near Philadelphia. On the quarterly analyst conference call yesterday, Range Resources CEO Jeff Ventura led off with a discussion about those two projects. To point out the importance of pipelines, these two projects will mean, according to Ventura, that Range will get $1 per Mcf more for their production once the pipelines go online. That’s a huge increase–as much as 33%–over what they receive now. Here are Ventura’s enlightening comments from yesterday’s conference call…
    Read More “2 Pipelines Will Raise Gas Sale Price by $1 for Range Resources”

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    PA Court: Gas Storage Fields Lock Up Property for Drilling Too

    In some locations there are small or large underground storage fields for natural gas located in the Marcellus/Utica. We’ve covered stories in the past about one such field–the Brinker Storage Field, a 35,000 acre area in Columbiana County, Ohio that Columbia has used to store natural gas going back more than 50 years (see Some Brinker Field (OH) Leases Revised, Others in Lawsuit). More often than not these fields seem to be a flash point with respect to leases and potential drilling under them. Because the fields were leased years ago, there are disagreements about what the leases say about royalties for any gas drilled under them. Little did we know (in fact we didn’t know) there are such storage fields located in Pennsylvania too. A case went to court challenging the right of Range Resources and NiSource (their Columbia Gas subsidiary) to retain lease rights for both storing natural gas and drilling for natural gas for property partially included in a unit that includes a 14,000 underground Donegal Storage Field operated by NiSource in Washington County, PA. The landowners have just lost the case–meaning units with storage fields under them can “hold by production” undrilled land in the unit solely because there is gas stored…
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    Stanford Univ Misses the Mark with Fracking Depths Study

    missing the markWhat could of been a valuable research project by a Stanford University researcher is, instead, just more “fracking maybe/might/could/possibly affect groundwater” headline grabber. Stanford environmental scientist Dr. Rob Jackson, a seasoned researcher, set out to determine at what depths is fracking safe and does not affect groundwater (“The Depths of Hydraulic Fracturing and Accompanying Water Use Across the United States” — abstract below). The press release describing the research attempts to redefine any shale well drilled and fracked at less than one mile down as a “shallow” well. This is an inaccurate characterization. From the release: “The most recent such study, published in Environmental Science & Technology, finds that at least 6,900 oil and gas wells in the U.S. were fracked less than a mile (5,280 feet) from the surface, and at least 2,600 wells were fracked at depths shallower than 3,000 feet, some as shallow as 100 feet. This occurs despite many reports that describe fracking as safe for drinking water only if it occurs at least thousands of feet to a mile underground, according to Jackson.” If a well was drilled at 3,000 feet down, that’s still 2,000-2,500 feet below water aquifers–a quarter of a mile of solid rock between the two! Not to mention that 2,600 wells out of 44,000 wells Dr. Jackson studied is a puny 6% of the total–a very small percentage. In other words, the vast majority of shale wells drilled are a mile or more under the surface. Interestingly, for all of the talk about “shallow” wells and the potential dangers of fracking, Dr. Jackson’s study “has not found evidence that frack water contaminants seep upward to drinking-water aquifers from deep underground”…
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    Pitt Law School Launches ‘Energy Law and Policy Institute’

    A meaningful percentage of MDN’s paying subscribers are lawyers. Energy lawyers. Why? Just about everything involved with shale energy–from exploration to signing leases to drilling, pipelines, production and even selling the end product involves lawyers. Whether the energy industry is in a up-cycle or down-cycle, the one recession-proof area of the industry is the law. So it was no surprise to learn that the University of Pittsburgh’s School of Law has just launched an Energy Law and Policy Institute. The institute “is a major priority of the School of Law and the University” according to the Pitt announcement. The purpose of the Institute? To “advance the training of law students to become leaders in providing legal services to the regional, national, and international energy sectors” by offering new courses, seminars, conferences and the like. Here’s the announcement…
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    NY Antis Now Want LPG Fracking Banned Too, Letter to DEC

    At the risk of sounding pedantic and endlessly repeating what we’ve said many times before–the frack ban in New York is not about water quality concerns or any of the other myriad so-called “problems” that come from using water to hydraulically fracture an oil or gas well. This is how we know. If you remove water from the equation, which is the major concern and why the New York Dept. of Environmental Conservation (DEC) has decided to ban fracking (supposedly), anti-drillers still object to fracking. A group of virulent, hardened, and frankly nutty anti-drillers from the National Resources Defense Council (NRDC), Earthjustice and Frack Action have just sent a letter to the NY DEC asking the DEC to ban ALL fracking, including LPG (propane) fracking that a group of landowners in Tioga County, NY plan to use (see NY Landowners File to Frack Horizontal Well w/Waterless Tech). What has anti-drillers so terrified of LPG fracking? If LPG fracking is used in NY, it will prove that fracking can be done safely in NY–and once that happens, it’s game over for those who object to fracking. Anti-drillers’ call to ban LPG fracking points out what we’ve said for years: these people object to fracking because they irrationally, psychotically, hate fossil fuels–not because fracking pollutes water supplies, because it doesn’t…
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    Special Election for NY Senate in Binghamton Tied to Fracking

    Sadly, pro-drillers in New York State recently lost a big supporter in the NY Senate–Sen. Tom Libous. For those who don’t live in New York, Libous was the long-time Senator from the Binghamton area, in the Senate for 27 years and a powerful member as deputy majority leader of the Senate. Libous was recently found guilty of lying to the FBI about using his influence to get his son a politically connected job. Libous has been removed from office. Essentially Libous got his son a job he didn’t have to work at but got paid for (see this Gannett story). Slimy to say the least, but we can list numerous ethics violations far worse on the Democrat side of the isle. For all of his faults, Libous was a friend to the pro-drilling movement in the state. The race is now on to replace Libous in a special election. The early leader, if you believe local news outlets (which we don’t), is Democrat Barbara Fiala–someone who once supported drilling but now, because she’s in Andrew Cuomo’s back pocket, opposes it…
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