Regulation

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    PA DEP Fines 3 Marcellus Drillers $374K for Methane Migration

    finedYesterday the Pennsylvania Dept. of Environmental Protection announced an agreement/settlement with three Marcellus drillers operating in the northeastern portion of the state. The three–Chesapeake Energy, XTO Energy and SWEPI (i.e. Shell) were fined a collective $374,481 for methane migration related to their drilling activities at three locations (three different counties) in 2011 and 2012. The bad news is that 13 private water wells between the three incidents were negatively affected, along with several local creeks. The good news is that the problems are all fixed. Methane migration is an eminently fixable condition. Here are the details for each fine, including what happened and where it happened…
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    NY Secession Movement Gains Momentum – Landowners to Rally Sunday

    secedeIt is an issue that simply won’t go away. Frankly, we’ve thought (until now) that it was more or less a publicity stunt. Pro-drillers and pro-gun rights residents of New York State have, since Gov. Andrew Cuomo banned fracking last December, called for upstate counties to secede from New York and either form a new state, or join with Pennsylvania. On the surface it may sound silly, but did you know secession has happened in our country three times before? And one of those times was for land that used to be part of New York State? No, we didn’t know that bit of history either. This Sunday, August 30th, a rally will be held in the tiny village of Bainbridge (Chenango County), NY from 1-3 pm for Marcellus/Utica landowners, gun owners and other overtaxed and over-regulated NY residents to demonstrate their support for secession. This is a movement that is gaining momentum. It’s a serious movement. None other than the liberal USA Today files this very serious report…
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    FERC Approves Dominion WV/OH Compressor Project, Rips Anti Group

    ripped to shredsIn June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The Clarington project, costing a modest $76.5 million, will allow Dominion to provide 250,000 dekatherms (Dth) per day of firm transportation service for CNX Gas, otherwise known as CONSOL Energy. One week ago today, FERC approved Dominion’s request. Below we outline the particulars of what Dominion requested and was granted. However, the project was not without opposition. The Allegheny Defense Project filed a motion to intervene. Allegheny tried to force FERC into denying Dominion’s application–but it didn’t work. What’s most interesting to MDN about the FERC approval of the Clarington Project is their very extensive, line by line response to Allegheny. In FERC’s response, they rip Allegheny’s arguments apart, bit by bit, argument by argument–and expose the group for the outrageous extremists they are, devoid of facts, with a total reliance on empty allegations and innuendo. We LOVE FERC’s response that puts Allegheny in its place…
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    PA Ethics Commission Clears Jessup Council to Vote on Electric Plant

    approvedAs MDN has previously chronicled, Chicago-based Invenergy hopes to build what will be the largest (to date) electric generating plant in the state of Pennsylvania powered by natural gas (see Public Hearing on NEPA Proposed Marcellus-Powered Electric Plant). Invenergy hopes to build the 1500-megawatt plant in the borough of Jessup (Lackawanna County), near Scranton. The project its wacko opponents, some of whom make some outrageous claims (see Gas-Powered Electric Plant to be Built “on Thousands of People”). However, the project continues to hum along. In April, local utility UGI announced they will upgrade existing and build new pipeline to feed the plant (see UGI to Feed Jessup, PA Electric Plant with Marcellus Shale Gas). One of the remaining hurdles is a vote by Jessup Borough on zoning for the plant. That vote will take place tonight. In advance of the vote, two of the borough council members asked the PA ethics commission to render an opinion on whether or not it’s OK for them to vote on the measure. The Ethics Commission gave them a green light…
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    Blockbuster: Obama/Govs/EPA/Tom Steyer Collude on Climate Rules

    big newsA blockbuster report from the Energy & Environment Legal Institute blows the doors off the potentially illegal collusion between the Obama White House, several state governors, and climate scare-monger groups backed by billionaire Tom Steyer. The report, titled Private Interests & Public Office: Coordination Between Governors, the Obama White House and the Tom Steyer-“Founded and Funded” Network of Advocacy Groups to Advance the “Climate” Agenda (full copy below) connects the dots of a disgusting, coordinated attack on fossil fuels (specifically coal, but also other fossil fuels). Using open records laws E&E Legal has produced a must-read exposé that lays bare how environmental extremists have put their own self-interests ahead of the nation, profiting from it as they do so. “This is the 5th transparency report in a series that E&E Legal has published on the ‘green movement’ and its network of public, private, and business interests, and what is clear is that 1%-ers are using ‘climate’ policies to destroy politically disfavored industries in order to transfer wealth to the politically preferred,” said Craig Richardson, E&E Legal Executive Director. We encourage you to read the report, and get as angry as we are about the ongoing deception that begins at the very top–with Barack Hussein Obama…
    Read More “Blockbuster: Obama/Govs/EPA/Tom Steyer Collude on Climate Rules”

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    Labor Dept. Unfairly Targets Marcellus Industry in SWPA & WV

    Witch HuntThe U.S. Labor Department is on a witch hunt, unfairly targeting not only the Marcellus/Utica drilling industry–but any company in the entire supply chain that benefits from drilling, including hotels, restaurants and convenience stores. When you have the full force and backing of an out-of-control president like B.H. Obama, you get kind of drunk on your own power. That seems to be what has happened at the Labor Department. The Department of Labor’s wage and hour division in Pittsburgh has been targeting Marcellus-related companies since 2012, arriving for surprise audits of how companies classify employees–and how they pay them (particularly overtime payments). The jack boots have investigated 395 companies in three years and assessed $10 million in wages, civil penalties and liquidated damages and spurred a number of lawsuits by employees (and even the Labor Dept. itself) against employers. One question: Why hasn’t the Labor Department launched ANY investigations into the employment practices of Big Green organizations like the Sierra Club, THE Delaware Riverkeeper, William Penn Foundation, Heinz Endowments, PennFuture, Clean Air Council, Food & Water Watch and a myriad of other such organizations where wild-eyed zealots appear to work 24/7 for weeks on end in their mission to end all fossil fuels? Surely there are some overtime violations happening in Big Green…
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    Ohio and 15 Other States Ask EPA to Delay Clean Power Plan

    guest postMDN is pleased to add another occasional voice to Marcellus Drilling News. Stephen Heins is an energy and regulatory consultant for a Wall Street firm, and the former vice president of communication for Orion Energy Systems. Steve has penned an article (below) pointing out five critical problems with the recently announced EPA Clean Power Plan. Steve makes a strong case that the EPA needs to hold off on implementing this draconian new plan until the Supreme Court hears a case brought against the plan by 16 states. Pull up a chair and enjoy Steve’s expert insights…
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    Coal Magnate Says Obama Waging War on All Fossil Fuels

    Obamas War On Fossil FuelsWhile MDN has long commented that while natural gas burns cleaner than coal and oil, we are by no means against other forms of fossil fuels. We have not fallen pray to the temptation to “pile on” coal and oil as inferior forms of energy in a vain attempt to prop up natural gas. Why? Because we know how liberals like Obama and the Democrats think. Once they are through destroying coal, they’ll come for natural gas and attempt to destroy it as well. That is now happening. As Robert Murray, chairman and CEO of Murray Energy Corp (big coal company) says, all forms of fossil fuels are under attack by the Obama administration. Murray also points out those who support natural gas and have supported Obama’s rhetoric against coal should not be surprised they have been betrayed by Obama and now are, themselves, a target for elimination. As Murray rightly says, affordable, reliable electricity in America is being destroyed by Big Green groups like the odious Sierra Clubbers…
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    PA Landowners File Countersuit Against Mariner East 2 Pipeline

    MDN told you last week that unfortunately Sunoco Logistics was forced to file eminent domain cases against several landowners in Washington and Huntingdon counties in Pennsylvania to gain access to survey those properties as a future possible site where the Mariner East 2 NGL pipeline will run (see Sunoco Files Eminent Domain Cases in PA Courts for Mariner East 2). Four landowners in Washington County have hired Hershey-based attorney Michael Faherty to represent them in an attempt to stop Sunoco’s efforts–in essence either reroute the pipeline (starting things all over again) or shut it down permanently. Faherty successfully won a case against Sunoco Logistics in York County last year and “feels confident” that efforts to stop Sunoco will “be successful.” His legal argument is an interesting one…
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    US Circuit Court: NY Landowners Released from Marcellus Leases

    court gavelThe U.S. Court of Appeals for the Second Circuit, located in New York State, released a decision yesterday in a case known as Beardslee v. Inflection Energy, LLC (copy of the decision is embedded below) that may create problems for future shale drilling in New York State–should the existing statewide ban ever be lifted. Yesterday’s decision is good news for landowners in one sense–it officially upholds the right of Tioga County, NY landowners party to the lawsuit to be released from old leases made in pre-Marcellus days when landowners signed leases for $3 per acre. Those leases were signed before the words “Marcellus” or “Utica” meant anything other than municipalities in New York State. (Interesting factoid: both shale plays are named after the NY towns where they were first identified. Further interesting factoid: both Marcellus, NY and Utica, NY banned fracking before the statewide ban was official.) The Second Circuit upheld a previous decision which we first wrote about in 2012 (see Judge Rules Against Chesapeake, Inflection in NY Lease Case), a decision appealed to NY’s highest court that upheld it (see NY High Court Decision Creates Toxic Environment for O&G Companies). The energy companies then appealed the decision to U.S. District Court, where they have now lost. The ultimate issue at the core of this case is whether or not New York’s government action in disallowing fracking of shale wells should be considered a “force majeure” event that extends a lease beyond the initial term. It is the one issue the none of the courts ever directly answered, including the Second Circuit…
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    Lawless EPA Issues New Methane Rule to Cripple U.S. O&G Drilling

    lawlessThe gloves are now off and everything is out in the open: President Barack Hussein Obama wants to destroy the oil and gas industry in the United States of America. Yesterday Obama’s preferred tool of destruction, the federal Environmental Protection Agency (EPA), released a plan that brings the jackboots of the federal government down on the necks of the industry–forcing them to “reduce” methane emissions by 40-45%. Methane, you may recall, is what drillers actually extract from the ground and sell. Methane is what they get paid for–the very thing they are incentivized to capture so they can sell it. Drillers have reduced their methane emissions–the stuff leaking out around the edges–by at least 40-45% over the past few years. In other words, the industry is already doing what the EPA wants them to do. Which means this action is a blatant attempt at stifling drilling in this country. Let us be crystal clear: This action by the EPA is illegal. This is an outright attempt to regulate the oil and gas industry, contrary to the U.S. Constitution which reserves such regulation to the individual states. Just have a look at the so-called “rule” the EPA has published (all 591 pages of it). It is a top to bottom set of unlegislated regulations that will put all oil an gas drilling in the regulatory hands of the EPA.

    This is a big and important story, so we’ve broken it into several posts. Below, in this post, is the EPA press release–a masterful propaganda spin job–along with a copy of the 591-page “rule” the EPA will first publish in the Federal Register, and then, 60 days later, adopt as an unlegislated law that will become of the law of the land governing oil and gas drilling. All done through the back door of trying to reduce methane emissions as a way of controlling mythical global warming.
    Read More “Lawless EPA Issues New Methane Rule to Cripple U.S. O&G Drilling”

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    Pro-Drilling Groups Weigh in on Lawless EPA Methane Rule

    white hatAs for the good guys, the guys in the white hats who support clean-burning natural gas and fossil fuels, they also weighed in on the EPA’s lawless new methane reduction rule, otherwise known as 40 CFR Part. Here’s what the good guys from ANGA, API, Marcellus Shale Coalition, WVONGA and even what three U.S. Senators had to say…
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    Anti-Drilling Groups Weigh in on Lawless EPA Methane Rule

    black hatIf you wonder whether or not a new regulation is good or bad, you can always tell by who supports it and who doesn’t. In the case of the EPA and their lawless new methane reduction rule, otherwise known as 40 CFR Part 60, national radical environmental groups like Earthjustice and the Sierra Club, along with regional and local radical groups like the Ohio Environmental Council and the Philadelphia-based Clean Air Council, are applauding the action taken by the Obama EPA…
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    The One Graph that Exposes the EPA Lie re Methane Regulation

    The graph below puts to rest the lie that the EPA’s action in trying to control oil and gas drilling via the back door of controlling methane emissions will do anything to help so-called global warming. It won’t. Not a thing. Why? One-third of all methane emissions are naturally occurring–coming from “wetlands” (i.e. swamps, representing 22%), the ocean (3%) and yes, termites (4%). Who knew termites fart that much? But wait, there’s even more farting. Of all “man-caused” methane emissions, cow farts, otherwise referred to as “enteric fermentation” represent 16% of all methane emissions, and “animal waste” (i.e. cow manure) represents another 5% of all methane emissions. That is, agriculture is responsible for 21% of all “fugitive” methane emissions. Oil & gas and coal extraction? That represents 19%. So the EPA is focusing on 19% of the problem and ignoring the other 81% of the problem, claiming that will magically reduce global warming. What utter cow manure…
    Read More “The One Graph that Exposes the EPA Lie re Methane Regulation”

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    PA DEP: We’re Not Close to Being Done with New Drilling Regs

    you ain't seen nothing yetYou know what happens when you elect Big Government liberals to important positions, like governor? You get high taxes and onerous regulations across all industries–but particularly on the drilling industry. Welcome to Pennsylvania and the floundering administration of Gov. Tom Wolf and his PennFuture sidekicks who pretty much run the whole show for Wolf–including the PennFuture Sec. of the Dept. of Environmental Protection, John Quigley. PennFuture is an anti-drilling environmental group that Quigley used to work for prior to being appointed by Wolf to run the DEP, the agency in charge of drilling (how’s that for ironic?). On a conference call yesterday Quigley said, of the current round of new drilling rules and regulations, you ain’t seen nothin’ yet. He plans to attack the Marcellus industry with even more onerous rules and regulations in the coming months and years of a (hopefully) one-term Wolf administration. Quigley is making his onerous list and checking it twice; gonna find out who’s naughty and naughtier (there is no nice in fossil fuels, ya know)…
    Read More “PA DEP: We’re Not Close to Being Done with New Drilling Regs”

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    2 Marcellus LNG Export Projects Get Canadian Approval

    Two Canadian LNG export projects have made significant progress–but both are still far away from actually getting built. A year ago MDN supplied you with a list of five potential Canadian LNG export projects along the East Coast of Canada (see List of LNG Export Projects for Marcellus/Utica Shale Gas). Two of those projects–Bear Head LNG and Goldboro LNG, both located in Nova Scotia–have received a green light from the U.S. Dept. of Energy (see 2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas). Both projects received a green light last week from the Canadian National Energy Board (see the article below). The gazillion dollar question is: Where will the natural gas come from that gets exported via these facilities? We’ve long hoped that Marcellus Shale gas would be some of that gas–we have way more than we can use here at home. But at the recent RBN Energy “State of the Energy Markets” conference in New York City, RBN’s Rusty Braziel said virtually none of the gas going to New England via the proposed Kinder Morgan Northeast Energy Direct pipeline nor the Spectra Energy Access Northeast pipeline would be exported. Frankly, if Marcellus gas doesn’t get piped to Canada, we think there’s virtually no chance these LNG projects will get built. Our sentiments were recently echoed by Moody’s Investors Services (see Moody’s: “Vast Majority” of LNG Export Projects Will be Canceled). So, read the following article, but do so with your head swiveling around as ours is. Will Marcellus gas get exported? Will the Maritimes & Northeast pipeline get FERC permission to reverse its flow and send gas from the U.S. into Canada? Will Kinder and Spectra actually build their pipelines to New England? A lot of unanswered questions when you consider whether or not Canada will actually build any of these LNG projects…
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