Regulation

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    Gun Loaded & Cocked, Maryland About to Commit Fracking Suicide

    Several weeks ago the Maryland House of Delegates put the bullet in the chamber of gun when they voted to ban fracking (see Maryland House overwhelmingly approves fracking ban). Yesterday the Maryland Senate cocked the hammer of the gun by voting 35-10 in favor of a frack ban. Now the legislation goes to Republican Gov. Larry Hogan (traitor, ran on a platform supporting fracking) who has pledged to pull the trigger and shoot the state in the head, committing fracking suicide (see Maryland’s Traitorous “Republican” Gov Caves, Supports Frack Ban). What a shame. Democracy and freedom never die from invading countries–it’s always internal, from within, from the people themselves who willingly give up the freedoms won with the blood and sacrifice of their ancestors. RIP Maryland–a once-great state. We recommend a total boycott of Maryland from now on. If you can avoid it, don’t shop there, don’t stop there, don’t stay there, quit buying anything made in Maryland–just avoid it whenever and wherever possible…
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    Coal King Robert Murray Still Spoiling for a Fight with NatGas

    Robert Murray

    Murray Energy CEO Robert Murray is an interesting character. We’ve reported on him a number of times over the years. Murray went after Aubrey McClendon when Aubrey named is new company American Energy Partners. Murray claimed a subsidiary company he owns already had that name. Eventually a court told Aubrey he could keep the name (see Federal Court Decides McClendon Can Keep ‘American Energy’ Name). In early 2016 Murray went after the shale gas industry in West Virginia. He said WV should lower the coal severance tax from 5% to 2%, and raise the natgas severance tax from 5% to whatever, in order to give coal a break in the Mountain State (see Why Can’t We be Friends: Can Coal & NatGas Get Along in WV?). Even though he rails against natural gas, Murray found it in his heart to lease some of his coal mining property for natgas drilling, twice (see Coal Company Leases 6K Acres for Natgas Drilling in Belmont, OH and Coal Co. Murray Energy Sells 5,900 OH Utica Acres – Who Bought?). The second lease was for $10,800/acre. Seems Murray says one thing but does another when it comes to natgas. Today President Trump delivers on yet another campaign promise by rolling back some of Obama’s draconian environmental regulations–specifically the Clean Power Plan–which will benefit Robert Murray and the coal industry. At least, theoretically. The jury is still out on whether coal will ever come back. Recently the Columbus Dispatch interviewed Murray. He maintains that coal can compete with natural gas “all day long” if only coal had a “level playing field.” Here’s what he said…
    Read More “Coal King Robert Murray Still Spoiling for a Fight with NatGas”

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    Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC

    In May 2016 a landowner in Wayne County, PA–in the Delaware River Basin–filed a lawsuit against the Delaware River Basin Commission (DRBC) asking a judge to declare the DRBC does not have jurisdiction to prevent construction of a natural gas well (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). MDN has chronicled, for years, the lawless actions of the DRBC in seizing power it does not have to block shale drilling in essentially two PA counties where measurable quantities of shale gas could be extracted: Wayne County and Pike County. DRBC’s former director, Carol Collier, is a hardened anti-driller who colluded with Josh Fox in making his infamous propaganda film Gasland. Collier is gone and it was thought her replacement, Steve Tambini would bring some order and sense to the organization (see DRBC Selects Steve Tambini as New Leader, Enviro Groups Unsure). Unfortunately that hasn’t happened–so far. The DRBC has blocked drilling since it considered rules for drilling in 2010, when it put a “temporary” ban in place. A Wayne County landowner argued in the lawsuit that oil and gas wells, under the DRBC’s charter, do not constitute a “project” that is regulated by the DRBC and therefore are exempt from oversight from the DRBC. Last week U.S. District Judge Robert Mariani disagreed and ruled against the landowner (copy of his ruling below). However, this may not be “bad news” for landowners and “good news” for the DRBC, as it may first appear, on the surface…
    Read More “Judge Tosses Wayne County, PA Landowner Lawsuit Against DRBC”

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    PA DEP Permit Delays Causing Slowdown in New Marcellus Drilling

    Delays in turning around permit applications for new Marcellus drilling is hurting the industry, according to the Marcellus Shale Coalition (MSC). MSC president Dave Spigelmyer says lack of certainty in the PA Marcellus means more drilling goes to neighboring West Virginia and Ohio–even to Louisiana. The PA Dept. of Environmental Protection (DEP), responsible for reviewing and issuing permits, sounds somewhat defensive about their lack of performance, blaming delays on staff shortages, staff turnover, and “enhanced scrutiny of permit applications.” The Pittsburgh office now takes over 200 days (over 6 months!) to process an erosion control permit–up from 139 days in 2015. Simply not acceptable…
    Read More “PA DEP Permit Delays Causing Slowdown in New Marcellus Drilling”

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    Anti-Pipeline Jihadists Pressure FERC re Atlantic Bridge Project

    Click for larger version

    In January the Federal Energy Regulatory Commission (FERC) gave its final stamp of approval for Spectra Energy’s Atlantic Bridge project (see FERC Approves Atlantic Bridge Project for New England/Canada). Atlantic Bridge will beef up capacity on the Algonquin Gas Transmission and Maritimes & Northeast Pipeline systems–to move more Marcellus/Utica gas to New England and Canada. Anti-fossil fuel jihadists like Food & Water Watch and the two U.S. Senators from Massachusetts, Elizabeth “Pocahontas” Warren and Ed “inside trader” Markey are doing their best to stop the FERC-approved project (see Mass. Senators Ask FERC to Reverse Atlantic Bridge Certification). The newest attack comes from Food & Water Watch, attempting to pressure/bully FERC into stopping construction until a “re-hearing” request is decided. Groups that don’t like a FERC decision can file for a re-hearing. FERC has X many days to consider the request until it is automatically denied. Once a re-hearing request is denied by FERC, enviro-jihadists can then file a lawsuit in court to try and make their case–but not before the re-hearing is denied. Since FERC does not currently have a quorum of three Commissioners to decide a re-hearing request (after Norman “cry baby” Bay left in a huff), FWW and others are demanding FERC put the brakes on Atlantic Bridge construction projects…
    Read More “Anti-Pipeline Jihadists Pressure FERC re Atlantic Bridge Project”

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    OOGA Joins Fight Against Obama BLM Venting-Flaring Rules

    In January 2016, the Obama Dept. of Interior posted a new rule that will make it all but impossible for oil and gas drillers to drill on federal lands (see Obama’s Interior Dept. Sneaks in New Rule to Limit Methane). The new 298-page rule requires companies to use expensive equipment to capture every last molecule of methane, the stuff these companies already capture so they can sell it, to prevent any “fugitive” methane from escaping into the atmosphere where it contributes to mythical global warming. Obama has also hiked the price drillers will pay to drill on federal lands. The aim is, of course, to shut down drilling on all federal lands. The “venting and flaring rule,” as it’s known, was adopted by the outgoing Obamadroids in the closing days of Obama’s ignominious administration. The new rule was due to be rolled back by a vote in the new Republican-controlled Senate. But that hasn’t happened–yet. Timid Republicans are afraid that rolling back the horrible rule will lose them votes with green radicals (not that greens will ever vote for them anyway). There is a full court press to get the Senate to vote. The Ohio Oil & Gas Association (OOGA), representing hundreds of Ohio drillers, has joined the effort and is trying to convince Ohio Republican Sen. Rob Portman to support the repeal of the BLM rule…
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    FERC Green Lights Construction of Dominion Project in Upstate NY

    In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. In March 2015 MDN friend Andy Leahy wrote about the pitched battle antis waged against the project (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). The antis were unsuccessful. The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). And then a REAL miracle happened. The corrupt New York Dept. of Environmental Conservation (DEC) approved the New Market compressor stations on Dec. 23, 2016 (see Miracle! NY DEC Approves Dominion’s New Compressor Stations). Barbara Lifton, an eco-left Democrat from Ithaca who serves in the New York Assembly, recently tried to stop the project from proceeding by sending letters to both FERC and the DEC, hoping she could (ab)use her position to pressure one or the other (or both) to delay the project, which is the antis’ first step in killing a project (see NY State Legislator Tries to Derail Dominion New Market Project). We’re delighted to report she failed. Last Friday FERC sent a letter to Dominion to let them know, now more than three years after filing, they can start the bulldozers and begin construction. In Communist NY! Who woulda thunk?!…
    Read More “FERC Green Lights Construction of Dominion Project in Upstate NY”

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    WVONGA Delivers ~1,000 at Rally to Support Co-Tenancy, Joint Dev.

    The West Virginia Oil & Natural Gas Association (WVONGA) has just raised the stakes significantly in a bid to pass new “forced pooling lite” legislation. In the past six years, the oil and gas industry in WV has pushed for a forced pooling law five times. It’s failed every time. So this year the industry, represented by WVONGA, said it would not push forced pooling but instead would try to get a bill passed to address two of the issues that were previously part of a larger forced pooling bill–something called co-tenancy and joint development (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). Co-tenancy says 51% of the rights owners can vote to accept a lease for drilling. It corrects a situation in which multiple rights owners are listed for a property–and sometimes (often?) it’s difficult to track them all down and get them to sign on the dotted line. Joint development is a bit more nuanced. Currently there are a number of existing old leases, 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. WVONGA says it corrects a loophole that prevents more drilling from happening. Rights owners say joint development legislation lets drillers have a freebie–instead of signing a new lease (for more money), the driller gets something never envisioned when the original lease was signed. Yesterday WVONGA bused a bunch of people (mostly oil & gas workers) from across the state to the Capitol steps in Charleston for a rally in support of new legislation to pass co-tenancy and joint development. Depending on the news source, “several hundred” or “nearly 1,000” attended the rally. It was a lot of people. One of the star speakers was newly minted Gov. Jim Justice (a Democrat who supports the industry). Justice came out in full-throated support of co-tenancy and joint development. The rally certainly seemed to have an impact on WV legislators, some of whom attended…
    Read More “WVONGA Delivers ~1,000 at Rally to Support Co-Tenancy, Joint Dev.”

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    PA DEP Launches Online Access to Shale Driller Documents

    The Pennsylvania Dept. of Environmental Protection (DEP) yesterday released a new online search tool for the public which enables anyone to search through electronic documents filed by Marcellus Shale drillers. Last year the DEP created new regulations for shale drillers called Chapter 78a (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Some of the new regulations were challenged in court by the Marcellus Shale Coalition in a lawsuit that is not yet resolved (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). However, a portion of 78a that requires drillers to file paperwork electronically was not challenged and has gone into effect. The DEP wants to share that information with the public via a new website (found here). While more information faster is generally a good thing, in this case we expect antis to use the information to try and spin and lie about the industry. Perhaps that’s the cost of free speech? Here’s the announcement about the new tool, along with a screenshot…
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    OH Lawmakers Propose Their Own Version of a PA Impact Fee

    We find it kind of amusing. Anti-drillers and Democrats (usually one and the same) in Pennsylvania bellyache and moan and groan that PA is “the only oil and gas state without a severance tax” and how life would be SO much better if only PA had a severance…blah blah blah. They point out that Ohio has a severance tax. West Virginia has a severance tax. EVERYBODY has a severance tax. Of course they conveniently ignore (or lie about) the fact that PA has an impact fee, or an impact tax, if you will. The impact fee levies a charge on new wells for a number a years on a sliding scale. Think of the impact fee like a property tax, and a severance tax like a sales tax on goods sold. The beauty of the impact fee is that 60% of it stays in the communities where drilling actually happens. Impact fee revenue goes to local municipalities to offset the “impacts” of drilling in those communities, money used for things like fire departments, police, roads, etc. An impact fee is superior to a severance tax in many ways. While OH and WV’s severance tax revenue went over a cliff when the price of natural gas went over a cliff, PA’s impact fee was far less affected. But the point of this post is not in the relative merits in the type of taxation. The point is that legislators in Ohio want to reallocate some of their severance tax revenue to be used in communities where Utica drilling happens. That is, they want to convert some of the OH severance tax into, essentially, an impact fee. So while PA bellyaches about having an impact fee and not a severance tax, states (like OH) that actually have a severance tax, would rather have an impact fee!…
    Read More “OH Lawmakers Propose Their Own Version of a PA Impact Fee”

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    Update on Trump’s FERC Appointments – “Fixing FERC”

    It sure seems like it’s taking a long time for President Trump and his team to announce and put forward his nominees for the Federal Energy Regulatory Commission (FERC). Shortly after taking office, Trump elevated one of the three sitting, Democrat Commissioners, Cheryl LaFleur to be Acting Chairman of the agency. That ticked off the then-current Chairman, Norman “crybaby” Bay, who promptly resigned (see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). Perhaps he saw the writing on the wall. The sitting President gets to appoint three of the five members of the Commission from his own party–so one of the Dems would have to go. Bay probably figured it would be him, so he jumped ship early, causing some damage to Marcellus/Utica projects because there is currently no quorum for important votes (see FERC Commissioner Norm Bay Targets M-U on Way Out the Door). Bay’s last day was Feb. 3–and still we’ve not heard an official peep from the White House about Trump’s planned three nominees. We’ve heard leaks about who Trump’s picks will be (see Breaking: Kevin McIntyre, Neil Chatterjee are Trump Picks for FERC and Names Mentioned for 3rd FERC Post, Incl. PA’s Powelson). But we’ve not had confirmation of those names, nor a timetable for when they will be proffered to the Senate for a vote, which is required. Frankly, it’s frustrating. We spotted an article about “fixing FERC” that includes a full rundown/bio for each of the three leading candidates that are rumored to in line for an appointment…
    Read More “Update on Trump’s FERC Appointments – “Fixing FERC””

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    Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC

    A disappointing setback for the much-needed Constitution Pipeline–a $683 million, 124-mile pipeline due to run from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. As you may recall, in April 2016, New York’s anti-drilling governor, Andrew Cuomo, decided he would cave to pressure from radical environmentalists and block the building of the federally-approved Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). Cuomo’s toadies at the Dept. of Environmental Conservation (DEC) decided not to grant (i.e. denied) the Constitution the permits it needs to cross creeks and swamps. That was finally enough for Williams and the other partners in the project, who promptly sued NY in federal, NOT state, court (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). Judge Norman Mordue of the Northern District of New York ruled last week that since NY has not officially denied the water crossing permits–simply not yet acted on them–there is no injury to the project. Even though the pipeline is losing money every day it doesn’t get built due to NY’s inaction. We fail to see how not acting on the permits over the long-term is any different from denying those same permits. It is a distinction without a difference in our book. But that’s what the judge ruled, granting the DEC’s motion to dismiss the case. The thread of hope that remains for the project is another case in which Williams (the builder of the Constitution) filed in an appeals court. Williams is maintaining the second case will go in their favor and when it does, construction is not far behind…
    Read More “Federal Judge Rejects Constitution Pipe Request to Bypass NY DEC”

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    Maryland’s Traitorous “Republican” Gov Caves, Supports Frack Ban

    There were early signs that Maryland’s newly elected “Republican” governor was weak on the subject of fracking, as we pointed out in 2015 when we said that then-new Gov. Larry Hogan, who was elected on a platform of supporting shale drilling, had decided to let a two-year moratorium on shale drilling become law without his signature (see Maryland’s Pusillanimous Gov Allows Frack Moratorium to Become Law). We should have know then that Hogan has no political courage. Recently environmental nutjobs in Maryland have turned up the heat, demanding a total and complete fracking ban by passing a law. The House passed a bill to ban fracking (see Maryland Democrat Lawmakers Continue to Torpedo Fracking). The bill has, so far, been stalled in the Senate. But maybe not for long. On Friday, Gov. Hogan, a spineless “Republican,” said he now supports a complete and total ban on fracking, forever, in his state. He’s “concerned” that if the Senate puts the measure out for a public vote/referendum, fracking in the state might actually happen one day. That’s called governing against the will of the people Mr. Hogan. That’s something Democrats do, not Republicans. What a disappointment this one-term governor has turned out to be…
    Read More “Maryland’s Traitorous “Republican” Gov Caves, Supports Frack Ban”

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    Horray! Trump Budget Fires 20% of EPA Staff, Trims 31% of Budget

    Yesterday President Trump released a detailed budget proposal which includes reducing the way-overbloated (and insidiously bureaucratic) Environmental Protection Agency budget by 31%. The budget would also ax some 3,200 EPA employees–about 21% of the 15,000 employed at the agency. It is sheer brilliance and long overdue. The EPA, under Barack Obama, sought to enforce national regulation of the oil and gas industry–something not permitted under the Constitution. It’s about time the agency was right-sized and its mission reigned in. Of course the reaction by the left has been predictable–from apoplexy to terror (snowflakes always melt so quickly). Here’s how the EPA budget news is being spun by mainstream media…
    Read More “Horray! Trump Budget Fires 20% of EPA Staff, Trims 31% of Budget”

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    EPA Administrator Pruitt Questions CO2 as Source of Global Warming

    Scott Pruitt

    MDN is not a blog/news site about debunking global warming flummery. However, we do mention it from time to time because a religious belief (against any objective proof) that mankind is causing Mom Earth to toast is at the center, the core, of so-called environmentalists who oppose fracking, pipelines and anything to do with burning fossil fuels. In an interview on March 9th with CNBC, new EPA Administrator Scott Pruitt said he does not agree that carbon dioxide (CO2) is the primary contributor to “the global warming we see.” He said measuring human activity’s impact on climate change is challenging to do. He is on solid scientific ground–and honest scientists, who happen to believe in man-made global warming, agree with his statements…
    Read More “EPA Administrator Pruitt Questions CO2 as Source of Global Warming”

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    DRBC Secretly Deliberating on Rules to Lift Shale Drilling Ban

    The Delaware River Basin Commission (DRBC) held a regularly scheduled business meeting yesterday in Washington Crossing, PA. As predicted, a number of anti-fossil fuel zealots turned up to make noise about the PennEast Pipeline project–and about the prospect of the DRBC allowing shale drilling. As we disclosed yesterday, the zealots all read from the same document prepared by Her Eminence, THE Delaware Riverkeeper, Maya van Rossum (see THE Dela. Riverkeeper Issues Final Orders to Minions re DRBC Mtg). It’s tiresome reporting on the same, predictable behavior by children in adult bodies who never learned manners from their parents. So we’re not going to comment on the circus freak show that was the public comment period yesterday. However, there was an interesting development to report. Lt. Col. Michael Bliss of the U.S. Army Corps of Engineers (the Army Corps is one of the standing members of the DRBC Commission) read a statement about the history and possible future of DRBC regulations that may allow shale drilling in the basin. You read that right. According to Bliss, since 2010 the staff of the DRBC has actively been engaged in private (i.e. secret) discussions with various state agencies (we’re assuming the Pennsylvania Dept. of Environmental Protection) in an effort to, at some point, release regulations that will allow shale drilling in the Delaware River Basin. He said those discussions are ongoing and that before any kind of regs are released, there will be plenty of notice and public hearings…
    Read More “DRBC Secretly Deliberating on Rules to Lift Shale Drilling Ban”