Regulation

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    Is New PA AG Shapiro Targeting Marcellus Industry like Kane Did?

    Steve Santarsiero

    We have some chilling and disturbing news to share with our fiends in the Marcellus industry in Pennsylvania. When Kathleen Kane, the now removed-from-office, former Attorney General of PA, took office in 2013, we speculated (based on her previous statements) whether or not she would target the drilling industry (see Will New PA AG Go After the Marcellus Drilling Industry?). Over the next several years, she did indeed target the industry, attempting to turn accidents into crimes (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO; PA’s Anti-Drilling AG Charges Minuteman with Enviro Crimes; and PA Attorney Gen. Kane Abuses Office Again, Arrest Warrant for EQT). Kane was later hoist with her own petard, jailed for a crime unrelated to the drilling industry (see PA’s Anti-Drilling AG Kathleen Kane Sentenced to Jail for Perjury). A fitting end to an undistinguished career. Kane’s successor, Attorney General Josh Shapiro, may be heading in the same direction as Kane by targeting the industry. Shapiro has just appointed an anti-driller, Steve Santarsiero, as Chief Deputy Attorney General of the Environmental Protection Section. It will be Santarsiero’s job to aggressively “prosecute cases against anyone or any company that breaks the law and harms our environment.” Santarsiero helped ban fracking on PA state land under former Gov. Ed “fast Eddie” Rendell…
    Read More “Is New PA AG Shapiro Targeting Marcellus Industry like Kane Did?”

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    Congress Considers Expanding FERC Authority to Fix Pipe Approvals

    The U.S. The House of Representatives’ Committee on Energy and Commerce held a hearing on Wednesday to hear testimony on a proposed plan to grant the Federal Energy Regulatory Commission (FERC) more authority to speed up the pipeline approval process. Up for discuss is an amendment to the Natural Gas Act to grant FERC more authority in coordinating what is, admittedly, a complex review process. A more powerful FERC would, for example, likely be able to override states like New York that refuse to grant water crossing permits (permits that are issued under a federal law!). Don Santa, executive director of the Interstate Natural Gas Association of America, was one of the people testifying before the assembled Congressmen. He said things have gotten pretty bad over the past two years–yes with FERC, but also with other federal and state agencies. Here’s some of what was said at the hearing…
    Read More “Congress Considers Expanding FERC Authority to Fix Pipe Approvals”

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    Ohio Legislators Push to Allow Fracking in State Parks, Forests

    Thumbing their collective noses at Ohio RINO Gov. John “foreigner hunter” Kasich, Republican legislators in the House 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. That small change would have huge consequences. How? the Oil and Gas Commission is charged with approving potential drillers on state land. Five years ago, Kasich flip-flopped on the issue and since then has not allowed shale drilling in state-owned forests and state-owned parks–by refusing to add any new members to the Commission. It is a de facto moratorium from the governor that prevents fracking on state-owned land. Enough is enough. Republicans intend to change it this year…
    Read More “Ohio Legislators Push to Allow Fracking in State Parks, Forests”

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    Antis Mad Middletown Won’t Block Mariner East 2 Pipe Near Homes

    Looks like Middletown Township, in Delaware County, PA (Philadelphia suburb), has finally faced reality that the Mariner East 2 Pipeline is coming through town. To be fair, town council came to that conclusion last September when they voted to grant easements to Sunoco Logistics Partners to build Mariner East 2 across four parcels of public land (see SEPA Town Votes to Allow Mariner East 2 Across Town Land). However, Middletown has still officially opposed the pipeline. In January Middletown colluded with other towns to pass a resolution opposing it–a totally empty gesture meant to placate a few disgruntled residents (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?). Those disgruntled residents are still not placated. Six residents living near where the pipeline will pass asked town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. At a meeting earlier this week, town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped up and agitated by Big Green groups, is considering a lawsuit against the pipeline to force it to conform with Middletown’s ordinance… Read More “Antis Mad Middletown Won’t Block Mariner East 2 Pipe Near Homes”

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    And Then There was One – Another FERC Commissioner Resigns

    Colette Honorable

    Just last week MDN highlighted the urgent need for more commissioners to be appointed by President Trump to the Federal Energy Regulatory Commission (see Dear President Trump: FERC Needs a Quorum. NOW.). FERC is the agency that, among other things, reviews and approves interstate oil and gas pipeline projects. A full commission has five members. The agency has been without a quorum since Feb. 3, when Norman “cry baby” Bay quit in a huff, leaving the commission with just two members (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). Both sides of the isle–those who support drilling and pipelines, and those who don’t–have been pleading with President Trump to get new members appointed. Last Friday one of the final two members, Colette Honorable, said she will leave the commission when her term expires in June. The only commissioner left will be current Chairperson Cheryl LaFleur. What’s going on? Why hasn’t the White House nominated anyone yet?…
    Read More “And Then There was One – Another FERC Commissioner Resigns”

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    WV Forced Pooling Lite Not Dead Yet – EQT Wants Special Session

    In early April MDN reported that West Virginia’s effort to pass a law dealing with co-tenancy and joint development–what we called forced pooling lite–had gone up in pot smoke (see WV Force Pooling Lite Goes Down in Flames – Lawmakers Blame Pot). Legislators in the House go bogged down debating pot smoking and didn’t have enough time to finish debate and vote on Senate Bill (SB) 576 (for background on what the bill would do, see Analysis of New WV Bill SB 576 re Co-Tenancy & Joint Development). The West Virginia Oil & Natural Gas Association (WVONGA) pulled out all the stops to support the legislation. They organized a bus-in rally at the Capital where nearly 1,000 people showed up to support the legislation (see WVONGA Delivers ~1,000 at Rally to Support Co-Tenancy, Joint Dev.). We thought for sure it was a fait accompli, because WV’s new Governor, Jim Justice, threw his support behind the bill. But at the last minute, the bill failed–as forced pooling bills have failed five times before. However, we did say this back in early April: “So is it curtains for the sixth time on forced pooling? We’re not ready yet to declare it dead during this legislative tenure. The governor in West Virginia has the power to convene a special session. We saw it happen when Earl Ray Tomblin was governor.” It seems our words were prophetic. EQT, one of the biggest drillers in the state, is pushing hard for Gov. Justice to convene a special session and to pass SB 576. EQT is providing some not-so-subtle pressure by indicating they may reallocate some of their drilling budget elsewhere if WV doesn’t pass the law…
    Read More “WV Forced Pooling Lite Not Dead Yet – EQT Wants Special Session”

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    Fed Court Strikes Major Blow to Obama Clean Power Plan

    An important breakthrough in our long struggle to overthrow the odious and misnamed Obama Clean Power Plan–a plan that assassinates coal and mortally wounds natural gas (see Obama Stabs Natural Gas Electric Plants in Clean Power Plan). On Friday, a federal court granted the Trump administration’s request to suspend a myriad of lawsuits against the CPP. Essentially what the court has done is to push the pause button on the CPP for the next 60 days to allow the Environmental Protection Agency (EPA), the agency that perpetrated the CPP crime on the country, an opportunity to figure out how to repeal it and just be done with it. None other than the mouthpiece of the establishment–the Washington Post–says the court ruling signals “the likely end of President Barack Obama’s signature climate policy.” They’re in mourning over at the Post. Here’s the good news that the CPP is on life support, waiting for Scott Pruitt to pull the plug and finally kill it…
    Read More “Fed Court Strikes Major Blow to Obama Clean Power Plan”

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    OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants

    In January, MDN highlighted a developing issue in Ohio that potentially impacts Utica/Marcellus shale in the region (see OH Power Cos. Try to Stop Gas-Fired Plants with “Re-Regulation”). Three large utility companies–FirstEnergy, American Electric Power, and Dayton Power and Light–are behind an effort to re-regulate the electric power generation industry in Ohio. The electricity industry is a complicated industry, with some some power producers operating as “regulated” and some operating as “unregulated.” Regulated power producers have their rates, and rate of profit, set by government regulators–which limits but also guarantees profits. Unregulated power producers, on the other hand, do not have the safety net of the government forcing ratepayers to pony up–they operate in the free market, taking all of the risks, and reaping the rewards if those risks prove worthwhile. Many (most?) of the new natural gas-fired electric plants getting built, like those we have focused on in Ohio, are of the unregulated kind. If Ohio rolls back the clock 18 years to re-regulate, it would likely spell the end of billions of dollars of investments in unregulated/shale-powered electric plants. A disaster. The latest tact companies like FirstEnergy are using to force through a rotten piece of legislation is to claim without it, their nuclear power plants will close down. And precious “diversity” of sources to generate electricity is needed. The legislation proposed (Senate Bill 128 and House Bill 178, same language) is actually a $5.4 billion bailout for FirstEnergy. So says Clean Energy Future CEO Bill Siderwicz. Clean Energy is in the middle of investing $4.5 billion in five new shale-fired electric plants in Ohio. That investment and those plants will disappear if this disastrous “bailout FirstEnergy” bill becomes law…
    Read More “OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants”

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    NJ DEP Temporarily Rejects PennEast Request for Wetland Permits

    The New Jersey Department of Environmental Protection (NJDEP) has temporarily rejected PennEast Pipeline’s Freshwater Wetlands Individual Permit and Water Quality Certificate application, submitted April 6. NJDEP said in their response that PennEast has not provided enough detail about the project–leaving out key pieces of information for two-thirds of the pipeline’s 37-mile trek through NJ. NJDEP says they want the application refiled within 30 days, and if PennEast doesn’t give them what they want within 60 days, the DEP will consider the application “withdrawn.” The news from NJ comes on the heels of the U.S. Army Corps of Engineers also telling PennEast they need more information too. Radicalized antis are rejoicing and their mouthpieces in mainstream media are painting this as a grim development for PennEast–perhaps the death rattle has begun. PennEast, on the other hand, is treating the news as a minor bump in the road–the application has just a “few outstanding items” that PennEast needs to track down and provide to the DEP, and then all will be just fine. We suppose the next 30-60 days will tell the tale…
    Read More “NJ DEP Temporarily Rejects PennEast Request for Wetland Permits”

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    Rover Pipeline Paying $2.3M for Knocking Down Historic OH House

    On Feb. 3, the Federal Energy Regulatory Commission (FERC) gave its final approval to Energy Transfer’s Rover Pipeline project–a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). Normally when FERC approves such a project, they issue a “blanket certificate” that allows the pipeline company to move forward with construction without getting “Mother May I?” permission for every step along the way. But FERC denied ET a blanket certificate for Rover. Why? Because Rover demolished a house that was under consideration for a national registry of historic homes, without first telling FERC (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. FERC says Rover should have reported their decision to demolish the house, which has Rover in hot water with FERC and the Advisory Council on Historic Preservation. That’s the last we had heard about the “historic” house–until we spotted an article that makes reference to a deal Rover agreed to, to pay out $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office. A total of $1 million is for preservation work in the 18 counties crossed by the pipeline. The rest of the money will be used for projects across the state.” So Rover didn’t pay a fine. Instead, they paid hush money. A shakedown, with money going to a PRIVATE nonprofit organization…
    Read More “Rover Pipeline Paying $2.3M for Knocking Down Historic OH House”

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    New PA Bill an Overreaction to Court Ruling on Strippers

    As previously reported, liberal Pennsylvania House of Representatives Democrat Pam Synder has now introduced a bill (HB 1283, copy below) to “clear up” what the state Public Utility Commission (PUC) is a loophole in the Act 13 law that may allow some drillers to avoid paying impact fees (i.e. drilling taxes) on some Marcellus Shale wells (see PA Lib Dem Introducing Bill to “Fix” Strippers Once and for All). In 2012 Pennsylvania passed the Act 13 law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, targeting the Marcellus–all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, won their case in March, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy. The PUC and the PA Democrat Party is using the court case to try and accomplish two things they haven’t been able to accomplish heretofore: (1) claim this is a prime example of why a nosebleed high severance tax is needed, in this year’s budget, and (2) fundamentally change the intent of the Act 13 law by passing a “clarification” as introduced by Snyder’s HB 1283 bill. Below we explore this issue in depth and tell you why the Snyder case win is NOT a way for drillers to avoid paying impact fees. In fact, the court’s decision makes it clear that drillers cannot simply reduce production for one month and then claim it’s a stripper well under the 90 Mcf/day definition. Snyder’s bill is an overreaction and does not clear up anything. Instead, it changes everything…
    Read More “New PA Bill an Overreaction to Court Ruling on Strippers”

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    Seneca Resources Fined $375K by PA DEP for “Multiple Violations”

    The Pennsylvania Dept. of Environmental Protection has just fined driller Seneca Resources $325,000 for a series of violations that occurred between 2013 and 2015. It seems in moving dirt around when building drill pads, Seneca caused erosion to occur. They also spilled ~100 barrels of crude oil in one location, and ~500 barrels of wastewater at another location. The violations happened in Forest, McKean, and Elk Counties. Here’s the notice issued by the PA DEP…
    Read More “Seneca Resources Fined $375K by PA DEP for “Multiple Violations””

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    PR Campaign Gets Atlantic Sunrise Pipe to Change Course in PA

    Nesbitt Memorial Hospital – click for larger version

    If you’re a landowner and want to dissuade a pipeline, like, say, the Atlantic Sunrise Pipeline, from crossing your property–what can you do? It helps if your property belongs to one of the local dynasties (i.e. BIG money) and if you can hire high-priced lawyers and issue a blizzard of press releases via Business Wire at $500 a pop. Apparently that’s what it takes to convince a pipeline company to change its course. At least, that’s the lesson we take away from Geraldine Nesbitt, landowner of The Nesbitt Parcel in Dallas Township (Luzerne County, near Wilkes-Barre), PA. Nesbitt has been 100% against the Atlantic Sunrise project since learning its proposed route would cross her big-monied estate. Nesbitt’s heir, Abram Nesbitt, once built a hospital in Kingston, PA that reminds of Downton Abbey (see the picture). Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. In February the Federal Energy Regulatory Commission (FERC) gave its final seal of approval for the project (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). After FERC’s approval, Ms. Nesbitt’s lawyers began an aggressive publicity campaign to try and convince FERC to stop the project. Last week Williams (builder of Atlantic Sunrise) filed a request with FERC to adopt an alternative route around the Nesbitt estate–and all of a sudden Ms. Nesbitt “has never been opposed to natural gas pipelines.” What disgusting hypocrisy. If Joe Farmer wants the pipeline rerouted around his prized hay field–good luck with that. But if an old-line establishment family with BIG MONEY like the Nesbitts wants a reroute, they get it. We don’t like it…
    Read More “PR Campaign Gets Atlantic Sunrise Pipe to Change Course in PA”

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    New 3.5 Mile Pipeline Project to Drill Under the Potomac River

    Click for larger version

    Columbia Pipeline, now owned by TransCanada, recently (in March) 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 West Virginia with the Columbia Gas Pipeline in Pennsylvania. The purpose of the Eastern Panhandle Expansion project is to deliver natural gas via local distribution channels to a new industrial facility in Berkeley County, WV (scheduled to open in Fall 2017), and to provide gas to other local businesses and residents in the Tri-State area. Most of the 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 antis in an uproar. The good news is that FERC has agreed to prepare an environmental assessment (EA) for the project. That is, this is now a real project with a high degree of likelihood it will get built…
    Read More “New 3.5 Mile Pipeline Project to Drill Under the Potomac River”

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    NY Landowner Group Asks Pres. Trump for Help Battling Gov. Cuomo

    The Joint Landowners Coalition of New York (JLCNY), a group representing over 70,000 landowners with a collective 1 million acres of land that could be leased for oil and gas drilling, only if, has just sent off a letter to President Trump asking for his help. The JLCNY, via the letter, alerts Trump to Gov. Andrew Cuomo’s shenanigans in blocking natural gas pipelines. The letter also asks Trump to support legislation we’ve previously highlighted by Congressman Tom Reed to protect landowners in New York (and other states) from government actions that block oil and gas development (see JLCNY Rally in NY to Support Defense of Property Rights Bill). Here’s what the JLCNY sent along to The Donald…
    Read More “NY Landowner Group Asks Pres. Trump for Help Battling Gov. Cuomo”

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    NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection

    Earlier this month MDN brought you the sad (and angering) news that once again Gov. Andrew Cuomo has caved to political pressure from environmental Nazis and instructed the now-corrupted Dept. of Environmental Conservation (DEC) to deny stream crossing permits for National Fuel Gas Company’s (NFG) Northern Access Pipeline project (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). A few days later, NFG issued a statement to say their proposed pipeline project would have FAR LESS impact on the environment “than either exploding an entire bridge structure and dropping it into Cattaraugus Creek (Route 219) or developing and continuously operating a massive construction zone in the middle of the Hudson River (Tappan Zee Bridge) for a minimum of five years” (see NFG Calls Cuomo DEC Denial of Northern Access Pipe “Troubling”). Both of those projects were reviewed and approved by Cuomo’s DEC, yet the DEC rejected a benign pipeline project. At the time we said this: “While there is no mention of a lawsuit against the DEC, you can bet your bottom dollar such a suit is coming.” Once again, we were right. Last Friday NFG sued the DEC in federal court, asking the court to review the DEC’s action in rejecting permits for the federally-approved project…
    Read More “NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection”