Regulation

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    PA DEP Reports: Air Emissions from Shale Industry Improved in 2015

    The Pennsylvania State Dept. of Environmental Protection (DEP) keeps track of emissions from various sources–including the shale industry. When drillers drill and pipeline companies pipe, the equipment used leaks some nasty stuff into the air. Frankly it’s no different for any industrial activity or business. Even homes. We all emit stuff into the air. The question is, how much do we emit and does it rise to the level of being harmful? Yesterday the DEP released air emissions numbers for the shale industry for 2015–the most recent year in which they have completed data. What does it show? According to DEP Secretary Pat McDonnell, it presents a “mixed picture.” Some of the nastiest pollutants, like nitrogen oxides (NOx), sulfur dioxide (SOx) and particulate matter (PM2.5), decreased from 2014 levels. Some things like methane (natural gas, considered a “pollutant” if it escapes into the atmosphere where it’s said to contribute to mythical global warming) are increasing. Because methane is increasing, McDonnell says more needs to be done to stem the leaking. On balance, this report looks pretty good to us–pollution from the gas industry (the things that really matter like NOx, SOx and PM2.5, are decreasing. A reason to celebrate the good work being done by the industry…
    Read More “PA DEP Reports: Air Emissions from Shale Industry Improved in 2015”

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    PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018

    It looks like Pennsylvania’s conventional (non-shale) oil and gas drillers will get a reprieve from onerous new drilling rules–at least until next year. PA Gov. Tom Wolf has been obstinate in demanding onerous new drilling rules for the conventional, as well as unconventional (shale) drilling industry since he took office. Reworked drilling rules for both conventional and shale drillers were done and ready to go under previous Gov. Tom Corbett. Then Corbett lost to Wolf, and Wolf demanded changes to the common sense rules everyone had already agreed to (see New Draft Drilling Regulations in PA: Wastewater Impoundments Out). Wolf’s changes for conventional drillers threatened to run PA’s traditional, small conventional drillers out of business by applying the same regulations to them that will apply to shale drillers. The Pennsylvania Independent Oil & Gas Association (PIOGA) represents many of those small conventional drillers and vigorously fought back (see PIOGA Turns Up the Heat on Wolf/Quigley Over TAB/Chapter 78 and PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). In the end, Wolf’s own Democrat Party legislators in the House and Senate abandoned him and the writing was on the wall: The entire package of drilling rules, for both conventional (Chapter 78) and shale (Chapter 78a) was headed for defeat. The legislature was about to repeal both sets of newly-minted DEP rules–so in 2016 Wolf pivoted and decided to accept half a loaf–passage of the shale rules, Chapter 78a (see Wolf Really Didn’t Wise Up, He Just Took Half a Loaf re Drilling Regs). Since that time, we’ve not heard much about Chapter 78, which applies to conventional drillers. In the August 19 Pennsylvania Bulletin, the DEP published a short notice to say the agency will now wait until late 2018 before attempting changes to Chapter 78 for conventional drillers…
    Read More “PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018”

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    Did Shell Pull a Fast One on Big Green Groups re Air Permit?

    Earlier this week MDN reported that Shell had settled an action brought by Big Green groups against an air permit issued for their now under construction ethane cracker plant in Beaver County, PA (see Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit). In 2015, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories) filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board, a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups wanted fence line monitoring. So Shell “caved” and agreed. But in reading an account of the agreement, it dawned on us, reading between the lines, that perhaps this is what Shell planned all along! That is, Shell already planned to do fence line monitoring. The settlement Shell signed earlier this week ensures the Big Green groups can’t bring any further actions with regard to the air permit. We don’t know for sure, but it seems to us like maybe Shell was playing a long game of chess, and knew this kind of action would come, and held back the fenceline monitoring piece until the right time to play it–trading the fence line monitoring pawn for inoculation against future Big Green litigation. Smart…
    Read More “Did Shell Pull a Fast One on Big Green Groups re Air Permit?”

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    Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0

    Yesterday MDN brought you the news that Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011 (see Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well). In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). The DEP said a Range well, drilled in 2011 in Lycoming County, PA, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled said methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board. In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We thought that was THE END. But it wasn’t. On Monday of this week, both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” We now have a copy of the settlement itself–and it shows the DEP will not extra one penny from Range over what they previously said should cost $8.9 million. Interesting. Antis like THE Delaware Riverkeeper, Maya van Rossum, are “dumbfounded” at the settlement. Below is a copy of the settlement paperwork and select anti reaction to it…
    Read More “Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0”

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    Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline

    Last week MDN brought you the news that THE Delaware Riverkeeper had lost a federal lawsuit against Kinder Morgan’s Orion Project to expand the Tennessee Gas Pipeline in northeast Pennsylvania (see Dela. Riverkeeper Loses Fed. Court Case Against NEPA Pipeline). Riverkeeper argued that both the U.S. Army Corps of Engineers and the PA State Dept. of Environmental Protection (DEP) should not have issued Clean Water Act stream crossing permits for the project. Last week a federal court ruled that the U.S. Army Corps was well within its right to do so. This week the other shoe dropped. The U.S. Court of Appeals for the Third District ruled that the DEP was also within its right to issue a permit. In this case, two strikes and THE Delaware Riverkeeper is out. The project, which received full Federal Energy Regulatory Commission approval in February of this year, remains on track to be built/online in June 2018…
    Read More “Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline”

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    Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill

    Will anti-fossil fuel Big Green groups succeed in turning a molehill into a mountain? That’s what they are attempting to do with the latest tiny spill (50 gallons) of drilling mud by Sunoco Logistics Partners in underground drilling work for the Mariner East 2 pipeline project in Dauphin County, PA. Over the past several months, Sunoco has experienced some “inadvertent returns” (i.e. leaks) of drilling mud at various locations. One of those was in Chester County, where a serious leak temporarily fouled a water aquifer and clouded drinking water for 15 local households (see Sunoco Stops ME2 Drilling in Chester County Following Water Issue). Sunoco took extraordinary steps to make it right, going so far as to pay to run municipal water to affected homeowners. Earlier this month Sunoco struck a deal with several Big Green groups to provide stricter regulation for ME2’s underground drilling (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Part of the deal says if Sunoco experiences two leaks of drilling mud at the same location, they must shut down drilling in that location and wait for the state Dept. of Environmental Protection to further review drilling plans before they can restart. On August 24th there was a 50-gallon drilling mud spill into the Susquehanna River in Dauphin County related to ME2. (A quick reminder: drilling mud, or “bentonite,” is non-toxic–the same stuff found in toothpaste and kitty litter). Thing is, there was another spill of 495 gallons at the same location a week earlier. Antis say Sunoco must now shut down drilling in that spot until further notice. Sunoco is saying that particular location was not part of the signed agreement…
    Read More “Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill”

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    Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well

    Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011. In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Range’s enviro crime? Methane migration from a well in Lycoming County, PA. The DEP says the Range well, drilled in 2011, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled say methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board (see PA DEP’s $8.9M Methane Migration Fine Appealed by Range Resources). In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We assumed that was the end of the matter. But alas, no. We now, finally, have an end. Both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” The paperwork (copy below) does not say what the terms of the settlement are. Both Range and the DEP are being mum about the terms…
    Read More “Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well”

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    Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1

    Atlantic Sunrise Pipeline – click for larger version

    An important piece of Williams’ $3 billion Atlantic Sunrise Pipeline project, meant to flow Marcellus gas to new markets in the Mid-Atlantic and southeast, is about to go online in the next few days. You read that right. Most of the coverage here on MDN with respect to the Atlantic Sunrise project has been about the most controversial part of the project–183 miles of new “greenfield” (brand new) pipeline construction that will happen in Pennsylvania–a project referred to as the Central Penn Line. Small groups of antis in places like Lebanon and Lancaster counties have vigorously opposed the new pipeline portion of the project in their communities. However, upgrades to several compressor stations and fixes to the existing Transco pipeline as it runs through states like Maryland and Virginia are also needed in order to make Transco bi-directional–able to continue flowing gas from the Gulf to the northeast, but now, also able to reverse and flow gas from the Marcellus/Utica in the other direction. Although the greenfield portion of the project has not yet begun (should in the next few weeks), the “brownfield” or tweaks to the existing pipeline/compressor stations has been underway, since February, and is now ready. The Federal Energy Regulatory Commission (FERC) has just granted Williams permission to bring the new tweaks online, which will allow Transco to reverse and flow an extra 400 million cubic feet per day (MMcf/d) of natural gas from Lancaster County, PA all the way to Choctaw County, Alabama…
    Read More “Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1”

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    OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands

    Ohio Gov. John Kasich (RINO) promised, five years ago, to allow shale drilling on state-owned forests and parks. He promptly then reneged on his promise. The way Kasich blocked drilling was to refuse adding new members to the Oil and Gas Commission, charged with approving potential drillers on state land. Kasich created a de facto moratorium that prevents fracking on state-owned land. In May of this year, Republican legislators, tired of Kasich’s recalcitrance, added a “little-noticed provision” in the state budget deal that will give the legislature, and not the governor, the power to select members of the Ohio Oil and Gas Commission (see Ohio Legislators Push to Allow Fracking in State Parks, Forests). Kasich vetoed the measure but legislators overrode the veto. As we reported in July, Kasich was on the verge of losing his power to block state land drilling (see Ohio Gov Kasich About to Lose Power to Stop Drilling on State Land). Faced with humiliating defeat, Kasich decided to act and is now reportedly “working hard” to get the appointments made…
    Read More “OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands”

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    Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit

    Exactly two years ago, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories)–filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca, PA (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board–a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups want fenceline monitoring and restrictions on flaring. Shell caved and gave them most of what they want, signing a settlement agreement last Friday (copy below). Shell did win one important concession: the litigious Big Green groups can’t sue Shell over any of their wild claims in the original filing…
    Read More “Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit”

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    PA DEP Raising Shale Well Permit Fee Later This Year

    The Pennsylvania Dept. of Environmental Protection has put drillers (and everyone) on notice that it will bump up the fee to file for a permit to drill a Marcellus Shale well. Prior to 2013, the permit fee for a new Marcellus well was $3,200. In 2013 the DEP bumped it up by 56%, to $5,000 (see Higher Marcellus Permit Fees Coming for PA Drillers). The DEP says statutorily it must review the fee “every three years” and now is the time (past time, really). The DEP is signaling “the need for a fee increase.” How much? The DEP is being coy about what kind of a jump they plan this time…
    Read More “PA DEP Raising Shale Well Permit Fee Later This Year”

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    NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline

    There’s been an interesting twist in the saga of National Fuel Gas Company’s (NFG) Northern Access Pipeline project. The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. The Federal Energy Regulatory Commission (FERC) granted final approval for the project in February of this year (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). Shortly after, NFG filed a request with FERC (in March) to bypass the New York Cuomo-corrupted Dept. of Environmental Conservation (DEC) because the DEC was dragging its feet on a decision to grant stream crossing permits for the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). Needless to say, the DEC didn’t like it. In April of this year, the DEC ruled against granting the project stream crossing permits, effectively killing it, at least for now (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). After DEC’s denial, NFG sued the DEC in the Second Circuit of the U.S. Court of Appeals to overturn their denial (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). OK, now is where it gets interesting. A similar court case was filed by the Constitution Pipeline against the DEC with the 2nd Circuit. The court ruled against the Constitution and for the DEC on August 18 (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). We’re sure NFG can see the writing on the wall for their lawsuit. So NFG has gone back to FERC and their request filed back in March that FERC bypass the DEC and go ahead and grant permission anyway. NFG made a motion for an “expedited request” by FERC last week. What if FERC agrees and overrules the DEC? And what if they don’t?…
    Read More “NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline”

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    New FERC Quorum Votes Final Approval for NEXUS Pipeline

    Two new members added to the Federal Energy Regulatory Commission by President Trump (Neil Chatterjee and Rob Powelson), added to the Obama-appointed member (Cheryl LaFleur) have not wasted any time in authorizing their first major pipeline project as a group. Last week the trio voted to approve the first major pipeline project since a quorum has been reestablished–NEXUS, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. On August 4th, NEXUS, which is a jointly owned project between DTE Energy and Spectra Energy (now part of Enbridge), sent a letter to the new FERC quorum urging fast action (see NEXUS Pipeline to FERC: Please Approve Project – NOW). Perhaps the letter did the trick. On Friday, August 25th, the three issued a certificate of public convenience and necessity (full copy below) allowing the project to move forward. Because of the delay when FERC was without a quorum, NEXUS says the pipeline will now evaluate and supply a new construction schedule, but they do plan to have the pipeline up and running sometime in 2018…
    Read More “New FERC Quorum Votes Final Approval for NEXUS Pipeline”

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    Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe

    The Sisters of the Corn have lost their battle to prevent the Williams Atlantic Sunrise Pipeline from crossing their cornfield. Last month MDN told you about a group of Catholic nuns who, with the help of radical Big Green groups, cleared a portion of a corn field they own (local farmer uses for planting corn), plopped a couple of wooden park benches and portable flower trestle in the middle of the corn field, and declared the spot a “chapel” (see Catholic Nuns Use Radicals to Build Chapel in Path of PA Pipeline). It’s a joke. But they weren’t laughing. They really thought that (a) if they refused to sign an easement granting a right-of-way to Williams, and (b) if they stuck a couple of park benches in a corn field, a judge would stop the pipeline from passing through–at least on their land. They were wrong. The Sisters of the Corn (as we call them, the actual name is The Adorers of the Blood of Christ) were one of five holdout property owners who would not sign easements. Last week a judge granted the easements anyway. Atlantic Sunrise now has 100% of the land they need to build the pipeline. Oh! The interesting thing about the Sisters of the Corn? The Sisters use natural gas to heat a retirement community they operate on the very same property where they don’t want a natural gas pipeline…
    Read More “Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe”

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    Haynesville Shale Tops Marcellus Rig Count, 1st Time Since 2011

    The Haynesville Shale, found in East Texas and Louisiana, last week surpassed the Marcellus for total number of active drilling rigs. That’s the first time the Haynesville has had more active rigs than the Marcellus since 2011–six years. What’s up with the “sleepy” Haynesville? It’s not so sleepy anymore. Last year one of the biggest and best drillers in the Marcellus, Range Resources, paid $4.4 billion to buy out and take over a Louisiana driller (see Range Resources Buys Louisiana Driller in Deal Worth $4.4B). Range drills in the Terryville Field in Louisiana, which sits just over top of the Haynesville. This year Range is spending 34% of their capital expenditure budget on Louisiana drilling–money that could have been spent in the Pennsylvania Marcellus. Why is the Haynesville picking up again? (1) It costs less to drill in Louisiana because taxes and other drilling costs are lower, and (2) pipeline infrastructure is already in place to sell the gas into higher-paying markets. This is a very loud warning to those in PA who say “drillers won’t go anywhere else ’cause the gas is here” as a justification for slapping a severance tax on top of the impact fee on top of a corporate state income tax: THEY’RE ALREADY LEAVING PENNSYLVANIA, going to the Haynesville and other plays. How obtuse can you be? How stupid is it to RAISE taxes when drillers are already shifting away from the state? If PA lawmakers insist on slapping drillers with a severance tax, drillers will be happy to turn the spigots off for a while until prices go up and they can afford to pay the tax. Drillers are equally happy to spend their money drilling new wells in other states, given regulatory problems and high taxes. And then where will your “easy money” come from to balance an overspent state budget?…
    Read More “Haynesville Shale Tops Marcellus Rig Count, 1st Time Since 2011”

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    Faux “Conservative” Group Runs Attack Ads re Fixing PA DEP

    We have more evidence that a so-called “Conservative” environmental group, calling themselves Conservatives for Responsible Stewardship, is anything but conservative. Let’s strip the euphemisms away, shall we? Conservatives for Responsible Stewardship is a group of liberal Democrats pretending to be conservative Republicans. It is a pretense. A lie. How do we know? It all goes back to the budget bill passed by the Pennsylvania Senate. Republicans, which control both the House and Senate in Pennsylvania, passed an unbalanced budget of $32 billion. Problem is, there’s only $30 billion of projected revenue. So after passing the spending part of the budget, the legislature (i.e. Republicans) now have to “come up with” $2 billion to cover the difference. The pressure has been intense to punish the successful Marcellus industry by stealing even more of their money (PA already takes an overly generous portion of their profits). Senate Republicans caved to the pressure and floated a spending plan that includes a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). The House, so far, has resisted the siren song that wants to lure them onto the rocks of killing the Marcellus industry. The Marcellus industry has, for years, complained about the sloooooooow response times in approving drilling permits by the Dept. of Environmental Protection (DEP). As an olive branch to the industry, Senate Republicans also included (in the budget bill) fixes to the slow DEP, to speed things up (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). So-called Conservatives for Responsible Stewardship are now spending big money advertising against the Republicans who voted for the budget bill because of the DEP fix included. Thing is, a LOT of PA Senate Democrats (11 of 17) also voted for that budget–but “Conservatives” for Responsible Stewardship isn’t spending a dime to run advertising against the Democrats. What does that tell you?…
    Read More “Faux “Conservative” Group Runs Attack Ads re Fixing PA DEP”