Regulation

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    Sixth Circuit Court Stops EPA from Implementing WOTUS Anywhere

    court gavelThank God for the U.S. Court of Appeals for the Sixth Circuit! Last Friday the Sixth Circuit issued a stay on the odious and overreaching Environmental Protection Agency (EPA)/Army Corps of Engineers’ (ECA) so-called update that redefines Waters of the United States (WOTUS) to include just about everything, including mud puddles (see EPA Power Grab: Redefines Waters of the U.S. to Include Everything). The new rule will have a profoundly negative impact on the oil and gas industry. Some 13 states sued the EPA/ACE to stop this draconian rule from going into effect. In August a federal judge temporarily blocked the new WOTUS rule to give the lawsuit brought by the 13 states a chance (see EPA’s Draconian WOTUS Rule Blocked by Federal Judge). However, the EPA, acting like petulant children, said they would move forward with implementing the rule in the other 37 states anyway. The Sixth Circuit on Friday put an end to that plan. Now WOTUS is not enforceable by the EPA, at least until the lawsuit plays out…
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    The Dirt on Basil Seggos – Cuomo’s Disastrous Pick to Run the DEC

    investigateEarly last week MDN told you about NY Gov. Andrew Cuomo’s disastrous new pick to run the Dept. of Environmental Conservation (DEC), the agency that oversees oil and gas drilling in the Empire State (see Disaster at NY DEC: Cuomo Nominates Anti-Driller to Helm Agency). It was early days, but we offered up evidence that we felt show the anti-drilling tendencies of Basil Seggos to head the DEC. MDN friend Tom Shepstone has done some more of his superb investigative work and presents “the rest of the story.” Tom says not only were our suspicions about Seggos correct, it’s even worse than we had imagined. It’s a big, incestuous mess that all leads back to the odious NRDC…
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    API Updates Recommended Fracking Standards

    recommendedThe oil and gas industry is far better at self-regulation and self-policing than any government agency can provide. Governmental regulators take forever to inflict new regulations–and they take even longer to lift those regulations when they’re no longer necessary or useful (witness the ban on crude oil exports in place since the early 1970s that the House of Representatives voted to lift last Friday, but Obama has promised to veto). A great example of self-regulating and self-policing is the American Petroleum Institute (API). Last week the API issued updated hydraulic fracturing standards with an aim to continuously improve well integrity, groundwater protection, and environmental safety. While API’s recommended practices are not binding on drillers, API standards are highly respected and used by many drillers–those who care about doing it right…
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    PA Gov Wolf Signs Acid Mine Water for Fracking Law

    it's a miracleIt’s a miracle! Pennsylvania Gov. Tom Wolf actually did something right–he signed Senate Bill (SB) 875 into law yesterday. You may recall on Tuesday we told you that the PA Senate and House had passed SB875 and sent it on to Wolf for his signature (see PA Acid Mine Water Bill Passes, Waiting for Gov. Wolf’s Signature). The bill legally protects Marcellus Shale drillers should they decide to use acid mine water (AMW) as a source of water for fracking. Anti-drilling groups will only be too happy to launch frivolous lawsuits against drillers should they use AMW. This bill prevents those shenanigans from happening. It is a win/win for the environment–helping to lessen the amount of fresh water needed in fracking, and cleaning up a huge problem in the state of millions of gallons of AMW flowing out of abandoned coal mines. Congratulations to State Senator Camera Bartolotta (Republican) for writing and sponsoring the bill, and for making it happen. Too bad she isn’t the governor of PA right now…
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    NC Legislature Makes Local Frack Bans/Moratoria Illegal

    illegalLast week we told you how heartbreaking it is to see well-meaning (but ignorant) county officials in Stokes County, NC pass a three-year moratorium on fracking–repeating the same mistakes made in New York State (see Sad: NC County Passes 3-Year Moratorium on Fracking). Don’t look now, but that moratorium is now null and void. The North Carolina legislature passed a law in 2014 that specifically says local municipalities can’t regulate oil and gas exploration–it is the sole responsibility of the state to do so. Some municipalities, like Stokes, thought there were loopholes they could use, and so they enacted a moratorium. The last bill the NC General Assembly approved before adjourning, which is a 41-page “technical corrections” bill (literally passed in the middle of the night) introduced language which closes any perceived loopholes and makes any actions like the one in Stokes illegal. Let the fracking begin!…
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    Disaster at NY DEC: Cuomo Nominates Anti-Driller to Helm Agency

    Basil Seggos
    Basil Seggos – Nominated by Cuomo to head the DEC

    It appears that New York Gov. Andrew Cuomo is attempting to shove the teetering oil and gas industry in the state over a metaphorical cliff and put it completely out of business. Last Friday Cuomo nominated an anti-driller, Basil Seggos, to be the next Secretary of the Dept. of Environmental Conservation (DEC)–the organization that oversees oil and gas drilling in the state. Seggos will replace another anti-driller, Joe Martens, complicit in Cuomo’s decision to ban fracking. Seggos will continue and likely expand the same policies begun by Martens. Seggos previously worked for seven years as the chief investigator and lawyer (chief litigator) for the radical environmental organization Riverkeeper. That alone should disqualify him from serving in such an important position–but in New York, the inmates run the asylum. You can tell Seggos will be a disaster (for the oil and gas industry) in his new position by the list of anti-drilling organizations falling all over themselves to congratulate Cuomo on the appointment. Seggos’ appointment is another in a string of disastrous decisions by the corrupt Andrew Cuomo administration…
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    PA Acid Mine Water Bill Passes, Waiting for Gov. Wolf’s Signature

    acid mine waterIn June MDN told you about an idea “whose time has come”–legislation in Pennsylvania that will allow drillers to use acid mine water (AMW) from abandoned coal mines as fracking fluid, reducing the need for using fresh water sources (see New Bill Allows Drillers to Use Acid Mine Water for Fracking in PA). The legislation, sponsored by Sen. Camera Bartolotta (Republican), would let drillers use AMW without fear that they will be sued from sun-up to sundown by radical environmentalists. The current laws on the books say “if you touch it, you own it” and drillers are afraid if they begin using AMW, litigious lawyers for Big Green groups like Food & Water Watch, Delaware Riverkeeper, Sierra Club, National Resources Defense Council and others will take them to court and try to bankrupt them–claiming the AMW, even if treated, is causing negative environmental and health issues. Senate Bill (SB) 875 would fix that problem. VERY good news: SB875 was passed by both the Senate and House last week and sent to Gov. Tom Wolf’s desk for his signature. Since Wolf plays dirty and uses political blackmail (holding up the state budget over a Marcellus severance tax), there’s no telling when, or if, he’ll sign SB875 since it “benefits” the Marcellus industry…
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    Did US Army Corps of Engineers Just Make it Harder for O&G in PA?

    what just happenedIt appears to us that the U.S. Army Corps of Engineers (USACE) has just made it harder for drillers and pipeline companies operating in Pennsylvania to do their job–although we’re not 100% sure. Last week the USACE issued a public notice about revisions to the Pennsylvania State Programmatic General Permit – 4 (PASPGP-4). According to the legal beagles at Babst Calland, “PASPGP-4 authorizes the discharge of dredged or fill materials and the placement of temporary or permanent structures that result in impacts to one acre or less of waters of the United States, including jurisdictional wetlands.” The USACE has added more threatened and endangered species, as listed on the Pennsylvania Natural Diversity Inventory (PNDI), to the PASPGP-4, meaning there’s more bats and bugs and other critters drillers and pipeliners must avoid when moving earth and cutting down trees. At least that’s what we think is happening. The USACE says it’s “streamlining” the review process. Looks to us like what they’re doing is adding more hoops the oil and gas industry must jump through…
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    NH PUC Grants Liberty Utilities Final Approval to Buy Gas from NED

    nprIt’s kind of funny to hear anti-drilling liberal NPR reporters interview each other and present it as news. Hilarious, in fact. They do their dead-level best to sound objective (which they aren’t) and knowledgeable (which they sometimes are) and haughty (which they always are). Here’s what precipitated the latest round of self-interviews. In July, MDN told you that the New Hampshire Public Utilities Commission (PUC) had given preliminary approval to Liberty Utilities (a NH utility company) to purchase firm capacity on Kinder Morgan’s proposed Northeast Energy Direct extension of the Tennessee Gas Pipeline (see Kinder Morgan Scores Important Victory in NH to Build NED Pipeline). Late Friday, the PUC gave their final approval, so it’s now a 100% done deal. If the pipeline gets built, one of the customers will be Liberty Utilities. And that’s a big problem for anti-fossil fuel nutters whose strategy has been to get deals like the Liberty Utilities deal blocked–thereby denying Kinder the customers they need to build the pipeline. With no one to talk to but themselves, the NPR “reporters” discussed this latest development and what it may mean for the anti-fossil fuelers in New England who oppose it…
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    PA DEP Issues Notice of Violation to JKLM Energy for Spilled Soap

    Dawn dish soapOn Monday MDN told you about an accident in Sweden Township (Potter County), PA where JKLM Energy released soap into a water aquifer while trying to fish out a broken drill bit from a Utica Shale bore hole (see JKLM Energy Accident Contaminates 5 PA Water Wells with Soap). The soap migrated into five nearby water wells. JKLM promised to provide daily updates on the situation and their progress with correcting the soap leak, and they’ve kept their word. Our previous post brought you all of the updates through Sept. 27. This post brings you the updates from Sept. 28 through yesterday, Oct. 1. We also have more news about the accident: the PA Dept. of Environmental Protection has issued a notice of violation because of the accident. No word yet on how much money spilling 55 gallons of soap into a water aquifer is going to cost JKLM, but you can be sure it won’t be cheap. Here’s the latest on the accident…
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    PA Utility’s Plan to Deliver Marcellus Gas Approved by PUC

    love it when a plan comes togetherLast November, MDN told you about an innovative plan by PECO, a utility company based in Philadelphia serving some 500,000+ natural gas customers in southeastern PA, to allow customers to sign up for its natural gas service and spread the cost over 20 years (see PA Utility’s Innovate Plan to Deliver Marcellus Gas to Customers). It costs a lot of money to install new gas mains through an area–$500,000 – $1,000,000 per mile–and PECO needs a lot of customers along a route to sign up to make it profitable. So they innovated a plan to make it possible. But the plan needed approval from the Pennsylvania Public Utility Commission (PUC). Yesterday the PUC approved PECO’s plan citing the goal of getting more Pennsylvanians using more of the home-grown Marcellus Shale gas produced in the state…
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    Federal Judge Blocks BLM Rules for Fracking on Federal Lands

    judge says noFinally a spot of good news in the never-ending battle to keep the federal government out of the business of regulating oil and gas drilling. Going all the way back to 2012, the federal Bureau of Land Management (BLM), an agency that sits under the umbrella of the U.S. Dept. of Interior (DOI), proposed draft rules for fracking on federally-controlled land (see BLM Issues Proposed New Rule for Fracking Federal Lands). There are some federal lands in the Marcellus/Utica–but not much. However, it’s the larger principle at stake: Will we allow the federal government under the Obama Administration to continue violating the U.S. Constitution, which specifically leaves oil and gas regulation to the individual states? Since 2012 several drafts of BLM’s fracking regulations have been released, the final version in March of this year (see BLM Introduces “Final” Fracking Rules for Fed Lands – 3 Yrs Late). The BLM adopted the new rules in March with the intent of enforcing them, but they were quickly sued in federal court by the Independent Petroleum Association of America, the Western Energy Alliance, the Ute Indian tribe and the states of Wyoming, North Dakota, Colorado and Utah. A federal judge ruled yesterday that the BLM cannot enforce their new fracking rules pending the outcome of the larger case. The judge believes the states (and IPAA and WEA) will prevail in their case–saying that Congress has not specifically granted the BLM the power to regulate fracking. Perhaps this will also put the breaks on the out-of-control EPA in its quest to regulate fracking…
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    OH & Other States Release Report on Injection Wells & Earthquakes

    StatesFirst Seismicity PrimerCountless times MDN has told you that in rare cases, injecting fracking wastewater into a deep, underground Class II injection well (for disposal) can cause earthquakes–if the injection well is located over a fault. When you inject fluids under high pressure into rock formations with a fault it can act like a lubricant, allowing the rocks to slip and slide–causing a low-level earthquake. It’s happened in Ohio. It’s happened (a lot) in Oklahoma. It’s happened in Texas. And in other states too. Thirteen oil and gas states joined together with the Interstate Oil and Gas Compact Commission (IOGCC) and Ground Water Protection Council (GWPC) to form the StatesFirst Initiative, a working group to pool their knowledge and try and figure out how, and under what conditions, injection wells cause earthquakes. Co-heading the initiative is Ohio’s Chief for the Division of Oil & Gas Resources Management (Ohio Dept. of Natural Resources), Rick Simmers. Rick and the working group have just released a 150-page Primer (copy below) to help regulatory agencies evaluate and develop good policies to mitigate and prevent earthquakes from injection wells…
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    Jeb Bush Visits Rice Energy in PA, Ticks Off Sierra Clubbers

    Jeb BushLooking like he’d had his morning Ensure drink, Republican presidential candidate Jeb Bush had plenty of energy as he talked about energy policy in a speech he delivered yesterday at the headquarters of Rice Energy in Washington County, PA. As predicted, Bush said things the oil and gas industry can stand up and cheer for: lift the ban on exporting crude oil, make it easier to export natural gas, and repeal some of the onerous regulations now on the books. He would also roll back Barack Obama’s Clean Power Plan regulations that target coal (and natural gas) with a regulatory death sentence. Below is how it was reported, followed by Bush’s policy paper on how he would handle energy policy if he were to get out of single digits in the polls and get the nomination (something not very likely)…
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    EPA Visits Pittsburgh for Final Hearing on Methane Emissions Law

    what you believeYour beliefs matter. For example, if you believe in the fairy tale of man-made global warming (see Inconvenient Global Warming Fact: Avg Temp Hasn’t Risen in 18 Yrs), then you will attempt to force the greatest country on earth–the United States–to abandon the extraction and burning of fossil fuels. It is that erroneous belief that animates the Kool Aid drinkers in the so-called environmental movement. If you’re a real creep, you try to prey on the unthinking public’s fears that the planet will bake and your health is at risk by continued extraction of fossil fuels. The federal EPA is preying on those fears with their latest power grab to illegally regulate the oil and gas industry through the back door by creating new, unlegislated laws to reduce so-called methane emissions from oil and gas drilling. Regulation of oil and gas drilling is Constitutionally left to the individual states. The EPA wants to corrupt that and was in Pittsburgh yesterday for a final public hearing on their draconian new unlegislated laws on methane emissions. The EPA got an earful–from both anti-drilling wackos and from the oil and gas industry…
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    Sad: NC County Passes 3-Year Moratorium on Fracking

    heartbreakerIt’s heartbreaking, but not surprising, to see residents in a North Carolina make the same mistakes made by residents in New York State. Monday night the Stokes County (NC) Board of Commissioners voted to enact a three-year moratorium on potential shale drilling in the county. Well-meaning but completely ignorant residents agitated and cajoled the commissioners into voting for no drilling. Stokes, located in northern NC, is part of the Dan River sub-basin, which in turn is part of the larger Triassic Basin. Earlier this year the state cleared the way for fracking to begin (see Triassic Park: North Carolina Becomes 34th State to Frack Shale). The ignorant agitators are happy with the moratorium as a first step, but ultimately (like New York) hope they can ban fracking altogether…
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