Regulation

Industrywide Issues | Regulation

EPA’s McCarthy Addresses O&G Industry: Arrogant, Clueless, Both?
February 26, 2016February 26, 2016

Federal Environmental Protection Agency (EPA) Administrator was invited and to her credit showed up at IHS’ annual CERAWeek conference earlier this week–a gathering of energy companies (particularly oil and gas companies). She gave the opening plenary speech and following that speech she was interviewed by IHS Vice Chairman Daniel Yergin. In response to a question about EPA regulation of the oil and gas sector, she said the EPA, “doesn’t regulate the oil and gas sector the way we do other sectors.” Does she REALLY believe that? If she does, she’s even more clueless than we thought. The Gas Processors Association isn’t having any of it. They responded with a prime statement…
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Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

Coast Guard Caves to Political Pressure, No Wastewater Barging
February 25, 2016February 25, 2016

What a major shame and disappointment. The Obama bullies have gotten to the U.S. Coast Guard (USCG) and convinced the once-proud protector of our waterways to withdraw a proposed policy they previously floated in 2013 to allow frack wastewater to be shipped on barges down rivers, like the Ohio. The USCG has officially withdrawn their previously published draft policy–a policy that never went into effect–and says drillers and barge operators can still potentially barge wastewater–but it will be on a case by case basis (they’ve yet to approve a single case). Lots of red tape and hoops to jump through, making it virtually impossible to get a shipment approved. It was one year ago this month that a controversy erupted when GreenHunter Resources said an existing USCG regulation from 1987 already grants them the right to barge produced water–i.e. brine, or the water that comes out of the hole long after frack wastewater or flowback is done coming out. The USCG disagreed (see GreenHunter/Coast Guard War of Words — MDN Explains It). GreenHunter kept up the pressure and said they would begin brine shipments without authorization from the USCG (see GreenHunter to Coast Guard, We’re Barging While You Fiddle Around). It is unclear to MDN whether or not that ever happened–we don’t believe GreenHunter ever did send a brine shipment via barge. What happens now? Can GreenHunter and others potentially barge brine “case by case”?…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Gov. Wolf Bans Leases on State Land & Busts DCNR Budget
February 23, 2016February 23, 2016

What happens when anti-drilling lib Dems, like PA Gov. Tom Wolf, get their way? Revenues dry up and the lib Dems have to raid other sources to make up for it. And that’s just what’s happening with the Pennsylvania Department of Conservation and Natural Resources (DCNR). Tom and the Dems made a big deal about not leasing nor allowing any more drilling on or under PA state lands. In fact, one of the first things Wolf did upon taking office in early 2015 was to slap a moratorium on any new state land drilling (see PA Gov Wolf Signs Exec Order to Ban Drilling Under State Land). What followed? No more lease payments for the DCNR, and royalties have fallen dramatically on land previously leased and drilled on/under. Now the DCNR faces a budget shortfall of $51 million–because of no new leases courtesy of Wolf. Wolf’s solution? Steal $61.3 million from the “general fund” to prop up DCNR. Typical…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Susquehanna County | Williams

Judge Tells NEPA Family to Let Williams Cut Maple Trees, Or Else
February 22, 2016February 22, 2016

Starting this week the sugar maples along the path of the Constitution Pipeline will come down. MDN previously told you about the Holleran family in New Milford, PA who make maple syrup by tapping the trees on their five acres of land (see Maple Syrup Farm in Path of PA Pipeline, Antis Make Most of It). While it’s unfortunate that Williams, the builder of the pipeline, could not find an alternate route (they did try), and unfortunate that media reports say up to 80% of their maple trees (~200) will need to be cut, we’re not sympathetic. The Hollerans have steadfastly refused any kind of offer from Williams to compensate them, instead aligning themselves with some of the most radical of radical anti-drillers in a publicity quest to pressure Williams to stop. It didn’t work and now a federal judge is telling the family if they prevent the trees from coming down, starting today, they’re going to the clink…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

FERC Says Rover Pipeline as Planned Negatively Impacts Environment
February 22, 2016February 22, 2016

In December 2014 Energy Transfer Partners filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC) for the ET Rover pipeline (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). Rover is an 800-mile, $4.4 billion pipeline that will connect Pennsylvania, West Virginia and Ohio, crossing pretty much the entire state of Ohio heading northwest before entering Michigan and eventually taking a dog-leg into Ontario. In February of 2015, exactly a year ago, ET filed a full application with FERC. Last week FERC responded with a Draft Environmental Impact Statement (DEIS)–and the news was not so good for Rover. FERC found “adverse and significant” impacts from the project as planned and delivered to ET nearly 25 pages of recommendations that ET will need to fix before they get an approval. Is this a fatal blow to Rover? Or just a speed bump? Time will tell…
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Industrywide Issues | Regulation | Statewide WV | West Virginia

2 Bills Favorable to Drillers Advance in WV Senate – SB 508 & 565
February 22, 2016February 22, 2016

Two bills that favor the drilling industry in West Virginia have recently advanced in the WV Senate. One of the bills we previously told you about–Senate Bill (SB) 508, a bill that would stop endless, frivolous lawsuits from being filed against drillers (see WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers). The other bill is new for us, SB 565, a bill that “would allow oil and gas drillers to begin building well pads and access roads prior to getting a well work permit approved by the state Department of Environmental Protection.” SB 508 passed the Senate Judiciary Committee last week, and SB 565 was passed in the Senate Energy Committee. They are both on their way and likely to pass the full Senate and House…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Pipeline Task Force Report: 658 Pages, 184 “Recommendations”
February 19, 2016February 19, 2016

In May 2015 Pennsylvania Gov. Tom Wolf and his underling Dept. of Environmental Protection (DEP) Secretary John Quigley created a “Task Force on Pipeline Infrastructure Development” (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). The purpose of the group was “to identify best practices for pipeline siting, permitting and safety.” We won’t recount all of the twists and turns–of how the Task Force was packed with government employees beholden to Wolf, etc. Along the way antis tried to protest and derail the meetings held by the Task Force (see PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed”). The final meeting has been held and the final report is now in. Yesterday Quigley released the Task Force’s Final Report, all 658 pages of it with 184 recommendations (full copy below). Along with the release of the final report, Quigley also issued what he calls the top 12 recommendations coming from the Task Force for how PA can and should handle a coming expansion of gathering pipelines in the state…
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Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

More on Wolf/Quigley 4-Point Plan to Reduce Methane Emissions
February 19, 2016February 19, 2016

In January Pennsylvania Gov. Tom Wolf announced a 4-point plan to supposedly reduce the amount of methane leaking from various oil and gas related activities–like drilling, compressor stations, etc. (see PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs). A few days later Wolf’s Secretary for the Dept. of Environmental Protection (DEP), John Quigley, further expounded on this manifestly poor idea (see Quigley Expounds on Methane Emissions Plan: Drillers to Get Hosed). The concern is that methane is a so-called greenhouse gas and that “fugitive” methane escapes into the atmosphere and will toast ole Mom Earth. Dumb as rocks–but there it is. To prevent old Mom Earth from toasting, Wolf and Quigley’s answer is the same as every liberal Democrat’s answer: more regulation. Last week the DEP revealed a little bit more about where they’re going with this…
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Air Quality | Hydraulic Fracturing | Industrywide Issues | Regulation

EPA Targets Fracking Again, This Time via Air Quality Study
February 17, 2016February 17, 2016

Here we go again. The federal Environmental Protection Agency (EPA) couldn’t, after four years of research, find any evidence that fracking negatively impacts groundwater supplies (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). So this out-of-control agency, filled with radicals, has decided to go fishing once again–this time using air quality. The EPA has requested $1.5 million in next year’s budget to begin a years-long study of fracking’s potential impact on air quality. Since the EPA considers the stuff you breathe out with every breath–carbon dioxide (CO2)–to be a “greenhouse gas” (hilarious if it weren’t so tragic), you can bet they’ll find, oh no!…the stuff drillers extract from the ground is methane!!!! And methane is even MORE potent than CO2 as a greenhouse gas, and oh no!, we’ve got to stop this right now…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Senate Democrat Candidates Want to Ban ALL Fracking
February 17, 2016February 17, 2016

Pay attention Pennsylvania voters. You didn’t listen to MDN the last time and elected the disastrous Tom Wolf as your governor–a decision you no doubt kick yourselves for each day. Yes, we told you so. Now listen up–you are facing a U.S. Senate race this November. Sitting Senator Pat Toomey (Republican) is in a tough race to retain his seat. There are (so far) three Democrats running in a primary to oppose Toomey. Two of the three candidates support an immediate ban on fracking–across the state. Everywhere. Both public AND private land (your land!). You CANNOT afford to elect Democrats who want to deny you your Constitutional property rights! PLEASE do not vote for these two extremists who want to ban fracking…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Michigan | Regulation | Statewide MI

Democrats in Michigan Introduce Bill to Ban ALL Fracking
February 17, 2016February 17, 2016

What is it with Democrats? Are they congenitally anti-drilling? Last week Michigan Democrats introduced a bill that would ban all hydraulic fracturing in the state. But just in case fracking still happens, the bill empowers local municipalities regulate it, and the bill requires wells to be at least a mile away from “sensitive locations” like schools, hospitals, homes and public parks. That is, don’t bother drilling anywhere. Michigan Dems may want to visit Pennsylvania where there are schools with their own gas wells sitting right outside of classroom windows, and hospitals that allow drilling on their property. There have been no ill health effects, and those organizations have reaped millions of dollars in revenue. It seems Dems only want money to slide through their fingers first (the way they derive and hold on to power). Tell your local Michigan House member to vote no on this idiotic bill…
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Antero Resources | Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Litigation | Regulation | Statewide WV | West Virginia

WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers
February 16, 2016February 16, 2016

There’s been an interesting twist in pack of so-called “nuisance” lawsuits filed against Antero Resources in West Virginia (see Scores of “Nuisance” Lawsuits Against WV Drillers Combined). As we reported, more than 200 residents in WV (likely those who don’t own the mineral rights under their land) began filing “scores” of “nuisance” lawsuits over the past couple of years against Antero Resources and Hall Drilling, in places like Doddridge County. The lawsuits claim excessive traffic, odors and noise from nearby drilling make it “impossible” for them to enjoy their homes. The individual lawsuits were rolled up into one mega lawsuit that, at the time, sat before the WV Mass Litigation Panel. More recently it seems the mass lawsuit was transferred to Ohio Circuit Court (see More People Pile on Antero, Seek to Join Mass “Nuisance” Lawsuit). The strategy by anti-drillers is to form a piranha-like school of fish to attack a large mammal and kill it with thousands of tiny bites. But a problem has appeared for the antis. A bill was just introduced in the WV Senate on Feb. 4, Senate Bill (SB 508) that defines what, exactly, a nuisance is for the purposes of such lawsuits. In other words, legislators are about to plug a hole being exploited by antis–and the antis are squealing like stuck pigs…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Randolph County | Regulation | Statewide WV | West Virginia

Atlantic Coast Pipeline Proposes New Route to Save the Salamanders
February 16, 2016February 16, 2016

MDN told you last month that the US Forest Service, drunk on its own power, vetoed a path through a few miles of national forests for the $5 billion Atlantic Coast Pipeline (see US Forest Service Blocks Atlantic Coast Pipeline in National Forests). Using cow nob salamanders and red spruce as their excuse, USFS said “nyet comrade” to Dominion in their quest to build a natural gas pipeline from West Virginia to North Carolina. Dominion had requested a special permit to cross teeny tiny sections of the Monongahela and George Washington national forests in West Virginia and Virginia. So now what? Last week Dominion announced an alternate route for the pipeline (see map below) that avoids most of (not all of) the forests–adding another 30 miles to the 564-mile pipeline, and disrupting 249 landowners in Pocahontas and Randolph counties who will now need to sign easements to allow the pipeline across their land. All to avoid a few miles of forestland. Here’s the latest on the mighty Atlantic Coast Pipeline, re-routed because of a salamander…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Lawmaker Wants Turnpike to Allow Pipelines, Charge Ongoing Fee
February 16, 2016February 16, 2016

A RINO member of the Pennsylvania House (from the Philadelphia area) has introduced a new bill that he believes is totally brilliant. Rep. Scott Petri, R-Richboro, introduced a bill to give the PA turnpike commission authority to allow use of its right of way for natural gas pipelines–and charge a fee for it (of course). Rep. Petri, you may recall, LOVES severance taxes (see PA Republicans Commit Adultery with Severance Tax – Again). But a severance tax would generate small potatoes compared with a “fee” assessed on gas flowing through pipelines. Instead of calling his proposal to allow pipelines along turnpike corridors a tax, Petri calls it a fee. Same thing. He’s proposing that the turnpike commission (i.e. the State of Pennsylvania) should all natgas pipelines and receive an ongoing fee for the amount of gas flowing through the pipeline. When NOBODY rushes to sign up for such a plan (should it ever pass), the next step would be to force pipeline companies to use said corridors–banning pipelines from being built on private property. That’s our prediction…
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Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Wolf Vows to Push Forward with Clean Power Plan in PA
February 11, 2016February 11, 2016

Are there any doubts remaining that Pennsylvania Gov. Tom Wolf is anti-fossil fuel? He’s trying to tax the Marcellus gas industry out of existence (see Wolf’s Demented 2nd Budget: Tax PA Marcellus 6.5% Instead of 5%). He’s now trying to regulate the coal industry in PA out of existence. Yesterday we brought you the great news that the U.S. Supreme Court has stayed the execution of coal by stopping–for now–implementation of President Obama’s draconian and misnamed Clean Power Plan (see Supreme Court Shocker – Justices Halt Obama’s Clean Power Plan). That means a decision on whether or not the plan can proceed will come from the courts no earlier than 2017. So what does Tom Wolf say? PA is going to go ahead and put a bullet in the head of coal (and to some degree natural gas) by moving forward with its own implementation of the Clean Power Plan. Arrogance personified…
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Air Quality | Industrywide Issues | Litigation | Regulation

Supreme Court Shocker – Justices Halt Obama’s Clean Power Plan
February 10, 2016February 10, 2016

On January 26, 2016, 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of President Obama’s EPA Clean Power Plan (see 29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP). A week before that a D.C. Circuit Court of Appeals denied such a stay, so the states had no alternative but to take their case all the way to the top. Yesterday, in a surprise decision, the High Court granted their request! That is, the U.S. Supreme Court stopped Obama’s draconian EPA regulations dead in their tracks. Now an extended and protracted court case will ensue. What it means is that CPP is dead for this year, and likely dead altogether…
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