Regulation

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    PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again

    Gavel-falling.jpgThe Democrat-controlled Pennsylvania Supreme Court ruled yesterday in another (hopefully final) decision on the 2012 Act 13 Marcellus drilling law passed and signed by then-Gov. Tom Corbett. Four Democrat judges have just struck down more of Act 13, leaving not much left except the part that raises money and gives it away (called an impact fee, otherwise known as a severance tax). You will recall that seven selfish towns sued the state over the Act 13 law and it’s provision that would substitute a statewide, uniform and fair set of zoning ordinances for drilling in place of a patchwork, crazy quilt system of local ordinances for oil and gas drilling. These seven selfish towns wanted their own ordinances and sued, ultimately winning at the Supreme Court (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The PA Supremes couldn’t, however, be bothered with deciding every tiny bit of nuance and sent some items back to the lower Commonwealth Court for final decisions. Following several cases in the lower courts, some of it came back to the Supreme Court for a final decision, and that just happened. The Supreme’s ruling (full copy of their decision is embedded below) affects the use of eminent domain, what information can be shared by doctors as it relates to privileged trade secrets for drillers, and most importantly, a decision that ends the right of the PA Public Utility Commission (PUC) to keep an eye on the zoning regulations passed by towns, to ensure those regulations don’t supersede state oil and gas regulations. Most of Act 13 is now down the toilet, thanks to four left-wing Democrat judges…
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    Maryland Beats Deadline, Submits Onerous New Fracking Rules

    deadlineLast week the Baltimore Sun ran an article (a portion of which we picked up) that said “sources” were telling the Sun that the Maryland Dept. of the Environment (MDE) would miss a deadline to submit revisions to revisions of revisions of fracking regulations that will allow the state to begin fracking on or about October 1, 2017 (see Maryland Will Miss Important Fracking Deadline on Oct 1). In order to meet the 2017 deadline when the current two-year moratorium expires, the new revisions must be issued by October 1, 2016, a year earlier. The Sun said that wouldn’t happen. But it did. In releasing the new revisions yesterday, Maryland Secretary of the Environment, Ben Grumbles, called the new regulations “the most stringent” regulations in the country. Strangely, a copy of the new revisions just released can’t be found on the MDE website. What we know from various news accounts is that there will be no drilling or fracking within 2,000 feet of a private water well. And that’s just one of the show-stopping requirements. Translation: there never will be any fracking in Maryland, mark our words. Or if there is, it will be isolated and rare as hen’s teeth…
    Read More “Maryland Beats Deadline, Submits Onerous New Fracking Rules”

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    PA Landowners Rally in Harrisburg to Support Royalty Bill

    Pennsylvania State CapitolLandowners from Bradford, Susquehanna, Wyoming and Lycoming counties (Pennsylvania) attended a rally in Harrisburg, at the Capitol, on Tuesday. They were there to lobby for and support passage of House Bill (HB) 1391, a bill that would guarantee landowners a minimum 12.5% royalty payment regardless of post-production costs. We have extensively covered this issue, which is causing a schism between landowners and drillers (see our most recent article: Guest Post: A Possible Solution for the PA Royalty Issue). Affected landowners are extremely mad, and want their legislators in Harrisburg to pass HB 1391. They were there to make the case. Although they had hoped the measure might come up for a vote on Wednesday, the bill’s sponsor, Garth Everett, said it won’t be considered until October when the House is back in session…
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    SEPA Town Votes to Allow Mariner East 2 Across Town Land

    Yes No tickbox with green YES tick
    Yes No tickbox with green YES tick

    MDN has previously highlighted the fight to build the Mariner East 2 pipeline. Town by town, opponents of the pipeline have tried to stop it with zoning regulations. And town by town, those efforts are failing. A prime example is Middletown, PA, in Delaware County (near Philadelphia). The Middletown Town Council voted earlier this month to put an ordinance on the docket for council members to vote on at the Sept. 26 meeting, an ordinance that if passed, will allow Sunoco LP to move forward with building the pipeline on public land in the town–in one case across a park, and in another close to an elementary school (see PA Town’s Angst Over Mariner East 2 Pipeline Near School, Park). Town council members faced heaving criticism and opposition, but in the end they did the right thing. Monday night the Town Council voted to grant permits to Mariner East 2, provided there are certain safeguards…
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    Mt Pleasant Twp Approves Range Well Near School

    approvedSomething noteworthy is happening in southwest Pennsylvania. Landowners and pro-gas supporters are turning out at local hearings to support more drilling. Case in point: Range Resources had applied for a permit to build a drill pad near a local elementary school in Mt. Pleasant (Westmoreland County), PA. Moms Clean Air Force and other anti-drillers turned out to oppose the plan. A local town board meeting was packed to capacity. However, a majority of those packing the meeting were pro-gas and wore t-shirts with “Land Owners United” printed on them. Cool! About time our side began to turn up for these meetings to support the industry…
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    Guest Post: A Possible Solution for the PA Royalty Issue

    ChrisAcker.jpgMDN is pleased to bring you another guest post from our very good friend Chris Acker. Chris is a geological engineer with an MBA. He grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos (see www.PianoGrands.com). A few years ago, it was established that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He leased with Cabot Oil & Gas and has a well sitting off his front porch not more than 200 yards away. Chris is now happily engaged once again in energy economics, with an emphasis, naturally, on gas. Chris is MDN editor Jim Willis’ right arm when it comes to scanning for stories, something Jim is profoundly grateful for. Chris sent Jim a note about the royalty issue, just a couple of paragraphs–and Jim found more wisdom in his few sentences than he has seen to date. So Jim asked Chris for permission to post his pearls of wisdom, and Chris decided to expand it. Below is a very thoughtful, intelligent, useful post on the royalty issue currently causing a schism between landowners and drillers in the Keystone State. We encourage everyone with an interest in this issue to read it. It contains a few new ideas we’ve not heard either side float–ideas that may help us find a way out of the current mess…
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    Status Update for 5 Important Bills Affecting PA Fracking Industry

    update.jpgThe legal beagles at the Norton Rose Fulbright law firm recently issued a post on their Hydraulic Fracking Blog with updates on five important bills currently before the PA House and Senate that will affect the Marcellus industry (drillers, midstreamers and landowners)–with details for what’s in the bills and the status for each bill. Likely the most controversial of the bills is House Bill (HB) 1391, which would guarantee PA landowners a 12.5% minimum royalty regardless of post-production costs. That bill is due for a procedural vote today. Other bills are in bottled up in various committees where they may or may not make it out for a full vote. The PA House is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26, and Nov 14, 15. That’s it–just 10 more days in session before the end of the year. The PA Senate is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26. Just 8 more days for the Senate. So whatever is going to happen must happen quickly. Here’s a rundown on the five important bills, including HB 1391 (“Amendments to Oil and Gas Lease Act”), HB 2275 (“Changes to Environmental Quality Board membership”), HB 2277 (“Amendment to Oil & Gas Act related to bonding requirements”), HB 2319 (“Amendment to Oil & Gas Lease Act”), and HB 2361 (“Pennsylvania Turnpike Right-of-Way Act”)…
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    Obama’s Disastrous Clean Power Plan Goes to Court Today

    court-houseWe’ve written plenty about President Obama’s so-called Clean Power Plan (CPP), introduced last summer, a plan to force electric generators to convert to using more “renewable” sources of energy–and less fossil fuels (see Obama Stabs Natural Gas Electric Plants in Clean Power Plan). The CPP outright assassinates coal powered generation, and wounds (but doesn’t kill) natural gas. It is Obama’s attempt at picking winners and losers in who and how we get our energy. We all saw how that worked out with Solyndra. Earlier this year 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of the CPP (see 29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP). In a shock decision, the Supreme Court did just that (see Supreme Court Shocker – Justices Halt Obama’s Clean Power Plan). Today the enormously complex CPP gets its day in court. The Court of Appeals for the District of Columbia Circuit will hear arguments from 16 lawyers (egads!) in a marathon session that will run for nearly four hours. Here’s a bit more about what to expect today, and in the days ahead, for this disastrous regulation forced on the American population by a dictatorial El Presidente…
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    Radical Enviros Beg FERC to Pull Plug on PennEast Pipeline

    bamboozleYet another desperate attempt by radical environmentalists to stop the much-needed PennEast Pipeline from getting built. Yesterday the New Jersey Conservation Foundation (NJCF) and Stony Brook-Millstone Watershed Association (SBMWA) asked (more liked begged) the Federal Energy Regulatory Commission (FERC) to withdraw the PennEast application, something called a “no alternative” action, and just let it die a stillborn death. Their argument to FERC seems to rely on the old tactic of “if you can’t dazzle them with brilliance, baffle them with bull$#@!.” Because a few sympathetic rads exist within government agencies like the EPA and Fish & Wildlife Service, and because those agencies were co-opted into sending negative comments about the project to FERC, the radicals at NJ Conservation and Stony Brook Watershed tell FERC it’s best just to scrap the whole thing. No sense in continuing. Move along–nothing else to see here. A nice try at bamboozling FERC, but it’s an agency wise to such deceptions…
    Read More “Radical Enviros Beg FERC to Pull Plug on PennEast Pipeline”

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    Guest Post: HB 1391 Will Restore What Bradford Landowners are Owed

    guest postLast Friday MDN ran a guest post from an executive who works for a Pennsylvania exploration and production company (E&P, what we call a “driller” here on MDN). In the post, titled Why PA HB 1391 Bill is Bad for the Marcellus, MDN invited those with an opposing view to send us a guest post on the other side of the issue. A landowner from Bradford County has done just that (read it below). We also include a recent AP article highlighting other landowners in Bradford who have been wronged by Chesapeake Energy (according to the landowners interviewed). With the highest amount of respect to the Bradford landowner writing the guest post, we must point out that in a way his post “makes the case” for the industry’s view as posted last Friday, a case *against* HB 1391. How?…
    Read More “Guest Post: HB 1391 Will Restore What Bradford Landowners are Owed”

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    PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8

    Scott Perry, PA DEP
    Scott Perry, PA DEP

    Some important news came out of a session held last week at the Marcellus Shale Coalition’s Shale Insight event. During one of the sessions, Pennsylvania Dept. of Environmental Protection (DEP) Deputy Secretary of the DEP’s Office of Oil and Gas Management, Scott Perry, said that the very long awaited new Chapter 78a shale drilling rules will go into effect on Oct. 8th. You may recall the last time MDN covered the issue, in August, there was some controversy and question over whether or not the final new rules would get published in the Pennsylvania Bulletin (see New PA Drilling Regs Closer to Reality, Questions Remain). We can now lay that question to rest. On Oct. 8, according to Perry, the rules as they are (no further tweaks) will get published and then, immediately, become law…
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    $1.1B Utica-Powered Electric Plant in Columbiana Gets State Approval

    approvedNatural gas-fired electric plants are a really big deal throughout the Marcellus/Utica region. Each time one of these plants gets built, it injects upward of $1 billion (or more) into the local and regional economy, creates 500 or more temporary jobs and 25-30 permanent jobs. And the gas it uses…oy vey! They are an important new customer for the abundant supplies of natural gas we have. So it’s a big deal when a new plant gets announced, and then, when that plant gets officially approved. Last October (nearly a year ago now) Advanced Power Services announced they want to build a second mega-electric generating plant that taps into and uses Ohio’s Utica Shale. The new plant will generate a whopping 1,100 megawatts of electricity and be located in Columbiana County, OH (see New $1.1B Utica-Powered Electric Plant Coming to Columbiana County). Good news: the Ohio Power Siting Board has given the project its blessing. Construction will begin in January 2017…
    Read More “$1.1B Utica-Powered Electric Plant in Columbiana Gets State Approval”

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    Guest Post: Why PA HB 1391 Bill is Bad for the Marcellus

    guest postWe don’t mind telling you that the royalty issue in Pennsylvania, specifically passage of House Bill (HB) 1391 to ensure landowners are guaranteed 12.5% royalty checks regardless of post-production costs, is a thorny issue for MDN. We can see both sides of the issue, but tend to favor the landowner side–slightly. The drilling industry knows that there is no bigger booster for them than MDN. So our periodic coverage and editorializing in favor of 1391 is a bone of contention. Drillers are not happy with your faithful editor. A long-time MDN subscriber and friend who works for a sizable driller in PA recently wrote us an email that (a) lays out the case for not tampering with existing, signed contracts, and (b) gently chides MDN for taking the landowners side in this issue. We asked for and received permission to bring you his email. As we responded to our friend, we are interested in getting this issue settled quickly. It breaks our heart to see allies divided. We all need to be firing at the other side, not within our own ranks. MDN is happy to run guest posts and views on this issue (or any issue). This letter writer does a good job, and makes a compelling case, for NOT passing HB 1391. Does he change your mind on the issue?…
    Read More “Guest Post: Why PA HB 1391 Bill is Bad for the Marcellus”

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    Spectra’s Algonquin Apologizes to FERC for Not Asking “Mother May I?”

    Mother-May-I.jpgRunning a bulldozer a few feet into a swamp–without written permission–can land you in a lot of hot water. That’s what Spectra Energy is learning following such an incident. Well, we don’t know if it was actually a bulldozer or not, but here is what we do know. On August 28, 2016, Algonquin Gas Transmission (a Sepctra company) experienced a break in the drill stem while attempting the pullback of a 5,000-foot-long HDD (horizontal directional drill) along the Hudson River in New York. The work being done is for Spectra’s Algonquin Incremental Market (AIM) Project. The Federal Energy Regulatory Commission (FERC) had an on-site Compliance Monitor, and that person WAS informed that Algonquin believed the break was within a wetland (i.e. swamp) adjacent to the drill entry side, and that Algonquin would like to “excavate the wetland” which includes removing a few trees, to access the drill stem. The Compliance Monitor (sort of like the old Soviet political officer) told Algonquin that he needed more information before taking such an action. Then it all gets muddled. Algonquin says it was a misunderstanding, and the FERC Compliance Officer says they ignored him (our interpretation of what’s being said). At any rate, the upshot is if Algonquin had waited for the written permission slip from the political officer, er, a, Compliance Monitor, there wouldn’t be a story. But Algonquin went ahead, encroaching on about 381 square feet of swamp–about the size of an average living room. And because of it, FERC has rained down hell fire on Algonquin…
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    THE Dela. Riverkeeper Sends Letter to Congress: Shut Down FERC

    investigationMaya van Rossum, who is THE Delaware Riverkeeper (the river’s mamma), got 182 of her friends, whom she calls “organizations” to sign a letter and sent it to the U.S. Senate demanding (she always demands, never politely asks) for hearings into the Federal Energy Regulatory Commission (FERC). Why? Because they’re actually doing their job–and that just can’t stand. Instead, she wants FERC shut down so no new pipeline projects will get approved. That’s the only acceptable outcome for Mamma Maya. She alleges that FERC is misusing its power under the federal Natural Gas Act. One of Mamma Maya’s friends, CORNball Paul Gierosky (cofounder of COalition to Reroute Nexus, or CORN) says: “FERC is corrupt and needs to be reformed.” What hubris…
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    PA Gov Wolf Said He May Ask NY Gov Cuomo to OK Constitution Pipe

    manoamanoOne of the interesting tidbits to come out of yesterday’s first day of the Shale Insight conference in Pittsburgh was an off-the-cuff remark from Pennsylvania Gov. Tom Wolf’s special assistant for infrastructure, Yesenia Bane, who said that Gov. Wolf is “willing to talk” with New York Gov. Andrew Cuomo to ask him to approve the Williams Constitution Pipeline project in the Empire State. Bane said Wolf has met with Williams and other stakeholders in the Constitution project, and apparently Wolf was impressed enough that he’s willing to add his own voice to those calling for an approval of the Constitution. Democrat on Democrat. Mano a mano. Should be interesting, if Wolf ever gets up the nerve to do it…
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