Regulation

Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Gives Public 45 Days to Comment on O&G Rule Changes
April 7, 2015April 7, 2015

The 2012 Act 13 law required the Pennsylvania Dept. of Environmental Protection (DEP) to update sections of the older 1984 PA Oil & Gas Act (see Rewrite of 1984 PA Oil and Gas Act Underway). That process was pretty much done and dusted under PA Gov. Tom Corbett. But then his Secretary of the DEP, Chris Abruzzo, resigned near the end of Corbett’s term, throwing the department into some disarray (see PA DEP Sec. Chris Abruzzo Resigns Following Porn Email Scandal). Tom Wolf won the governor’s race and installed John Quigley to head up the DEP and Quigley had other ideas about the rewrite that was nearly done (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Now that Quigley has changed things up, he’s going to give the “public” a good long look. Instead of the typical 30 day comment period, Quigley’s DEP announced yesterday they will give the public three hearings and 45 days (ending May 19) in which to comment on their changed new rule changes…
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Butler County | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Why < 9% PA Towns Haven't Passed O&G Zoning Regs: Anti-Drillers
April 7, 2015April 7, 2015

There’s a reason that less than 9% of communities in the 33 Pennsylvania counties with shale drilling have passed ordinances specifically aimed at the drilling industry. They look at the grief experienced in places like Middlesex Township (Butler County) where Martians–a few parents from the local Mars School District–are agitating to prevent a shale well from being drilled 3/4 of a mile from the school (see Rex Drilling Operation Near Mars School Put on Hold). Those towns see how so-called non-profits like the Delaware Riverkeeper are operating outside of their jurisdictional (we would argue outside of their legal) parameters, costing communities like Middlesex big bucks (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). Other towns look at that festering mess and say, “no thanks,” which is kind of ironic since the towns themselves sued to overturn portions of the Act 13 law, giving them the right to enact their own oil and gas zoning regulations…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

EPA Expanding CWA (Again), Applies to Shale Drillers re Wastewater
April 7, 2015April 7, 2015

We have mixed emotions about a new rule proposed by the federal Environmental Protection Agency (EPA) that further extends the Clean Water Act behemoth by applying it (yet again) to regulating the oil and gas industry. The new rule, titled “Effluent Limitations Guidelines and Standards for the Oil and Gas Extraction Point Source Category” (document number EPA-HQ-OW-2014-0598, full copy below) would prevent untreated frack wastewater from being treated by municipal sewer and water treatment plants. The entire rule is created because once upon a time this sort of thing did happen in Pennsylvania, before then PA DEP Secretary Michael Krancer put a stop to it in 2012 (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). The EPA thinks because PA used to do it, there’s nothing to say they might not fall into their old, bad habits and do it again “someday,” so the EPA wants to put a new unvoted-on law in place to prevent it…
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Anti-Drilling/Fossil Fuel | Cuyahoga County | Hydraulic Fracturing | Industrywide Issues | Litigation | Ohio | Regulation

Broadview Heights, OH Moms: Don’t Frack With Us
April 7, 2015April 7, 2015

Three weeks ago anti-drillers in the Cleveland suburb of Broadview Heights were handed a crushing defeat in which a County Common Pleas Court judge struck down a so-called community “bill of rights”–the only “right” of which was to deny legitimate oil and gas drillers the ability to conduct business. We pointed out what sore losers anti-drillers are (see OH Antis Handed Crushing Defeat in Broadview Hghts Home Rule Case). The immediate reaction from the small group of antis in Broadview Heights was to engage in borderline sedition–calling the government and the courts illegitimate. They’ve appeared to dial back that rhetoric just a tad (perhaps their lawyer told them to pipe down), but they’re still PO’d (personally offended). Last night Mothers Against Drilling In Our Neighborhood (MADION) held a rally to spout and vent…
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Brooke County | Economic Impact | Electrical Generation | Industrywide Issues | Jobs | Regulation | West Virginia

Brooke County, WV Marcellus-Powered Electric Plant Plan Advances
April 6, 2015April 5, 2015

A month ago MDN brought you the big news that the father and son team building a $615 million, 549 megawatt electrical generating plant near Moundsville, WV that will be powered by Marcellus Shale gas are planning to build three more of them–all in West Virginia (see Big News: 3 More Marcellus-Powered Electric Plants Coming to WV). Two of the three new plants will, if built, be located in Brooke County, WV. Last month the Brooke County Commission signed two memorandums of understanding with Energy Solutions Consortium (father and son Andrew and Matthew Dorn) to agree to a plan to let the Dorns build the plants and then sell them to the county, leasing them back to run them–a plan called a PILOT plan, or “payment in lieu of taxes.” The plan allows the Dorns to avoid paying prohibitively high property taxes on the plants while still generating a big, fat payment to the county and local school district. Last week the local board of education and town council also signed on to the plan, an important next step in making the project a reality…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA’s First Monthly O&G Production Report Goes Live
April 2, 2015April 2, 2015

Pennsylvania has now moved to the head of Marcellus pack when it comes to production reporting. Previously drillers in the state were required to file production numbers with the Dept. of Environmental Protection (DEP) every six months, but last October the Republican state legislature passed a bill that Republican Tom Corbett signed into law moving reporting from every six months to every month (see 2 Bills on PA Gov’s Desk: Monthly Production #s, Lease Termination). The first monthly production report, for January 2015, is now available. The DEP says 80% of drillers filed on time (representing 99.5% of shale wells in the state). What do the numbers show?…
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Industrywide Issues | Pennsylvania | Regulation | Taxation | Wyoming County (PA)

PA Dem Seeks Severance Tax Break for 2 P&G Wells in His District
April 2, 2015April 2, 2015

One of the unsung hero stories we’ve told a few times on MDN is about the only Proctor & Gamble manufacturing plant in the world that is 100% energy self-sufficient. It’s located in Wyoming County, PA (see PA P&G Plant: 100% Energy Self-Sufficient from Marcellus Gas and P&G Plant in NEPA Adds Marcellus CNG Filling Station). The reason the P&G plant is energy self-sufficient and in fact the reason it sells energy back to the local power utility is because it drilled and operates two Marcellus Shale wells on company property. The gas from those wells feeds an electric generating plant that produces more electricity than P&G can use at the plant. It’s a very cool story. But now, here comes Democrat Gov. Tom Wolf who wants to tax the shale gas industry into oblivion. The severance tax he’s proposing would apply to the two wells on P&G’s property–even though they don’t sell the gas for a profit. So local PA Rep. Mike Carroll, a Democrat from Avoca (who supports Wolf’s tax and spend policies), is trying to carve out an exception for the two P&G shale wells because…well because P&G is in his district employing lots of Carroll’s voters and no doubt a big contributor to his campaign coffers, either directly or via the salaries P&G pays to people who work at the plant and contribute to Carroll…
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Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill HB 2688 May Get Another Vote This Fall
April 1, 2015April 1, 2015

After five years of trying, it seemed that a forced pooling bill was finally going to pass in West Virginia during the 2015 WV 60-day legislative session. But at the literal eleventh hour of the last day of the session, it failed (see The Real Story of Why Forced Pooling Bill Failed in WV). The bill this time was House Bill (HB) 2688 and was introduced and championed by Delegate Woody Ireland, R-Ritchie. Ireland was a bit dumbstruck after HB 2688 failed and he didn’t have much to say. But Woodie is talking now–and talking about re-introducing the bill this fall…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

It’s Official: Williams Files with FERC for Atlantic Sunrise Pipeline
April 1, 2015April 1, 2015

It’s finally time for the sun to rise on Williams’ Transco Atlantic Sunrise pipeline project. It seems like we’ve covered the story of Atlantic Sunrise forever–a $2.1 billion project consisting of compression and looping of the Transco Leidy Line in Pennsylvania along with a greenfield (brand new) pipeline segment of 178 miles, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania (see Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs). We’ve covered many of the anti-drilling nutball antics in opposing the pipeline (see Convicted Lancaster Protesters Taunt Williams After Court Date). Even though Williams has conducted countless meetings and filed reams of paperwork–it was only yesterday that Williams filed the full, complete, and official application with the Federal Energy Regulatory Commission (FERC), asking FERC to approve the project…
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Hydraulic Fracturing | Industrywide Issues | Regulation

Equitable Origin: Another Organization Wants to Regulate Fracking
March 31, 2015March 31, 2015

It seems everybody and his brother (and sister) want to regulate shale drilling in the U.S. The latest group attempting to set itself up as some sort of standard is Equitable Origin (EO), which originated in South America and has offices in both New York City and Bogata, Columbia. EO has been around since 2009 trying to horn in on regulating conventional oil and gas drilling in this country by arrogantly setting up a so-called standard that they hope everybody will just adopt, called the EO100 Standard. Two weeks ago EO introduced an update to that standard called EO100.1 for Shale Oil and Gas Operators (full copy below). It will, of course, go nowhere. The interesting thing to MDN is the increasing number of organizations who want to regulate what is Constitutionally a state’s right to regulate…
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Hydraulic Fracturing | Industrywide Issues | Regulation

Dem Congress Members Collude with White House to Target Fracking
March 31, 2015March 31, 2015

It was easy to predict–so easy, in fact we did predict it back in 2012. The “it” is the federal effort to regulate all of fracking and oil and gas drilling in the U.S. (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking). The Obama White House and EPA have desired to control fracking for years. Since Republicans controlled the House, Obama couldn’t push through a complete takeover of fracking (although increasingly he ignores the law and does what he wants anyway, petulant man-child that he is). Obama’s Bureau of Land Management (BLM) has just released their final rules for fracking on federal lands (see BLM Introduces “Final” Fracking Rules for Fed Lands – 3 Yrs Late). In a well-timed move (collusion), five Congressional Democrats introduced legislation that would put the Environmental Protection Agency (EPA) in control of fracking–usurping the states and their Constitutional rights to do so. One of the five is, shamefully, Pennsylvania Senator Bob Casey…
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Anti-Drilling/Fossil Fuel | Cuyahoga County | Industrywide Issues | Lancaster County | Litigation | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA

CELDF Costing Towns Big $ With Losing Pipeline/Drilling Bans
March 30, 2015March 30, 2015

Communities that attempt to block pipelines (and drilling) with illegal so-called community rights ordinances that seek to block those activities are losing in court and, in at least some of the cases, taxpayers in those communities end up paying the legal fees for the pro-drilling side. That’s the good news we find in an article by a PBS “reporter” (we’d call her an anti-drilling propagandist) writing on the StateImpact Pennsylvania website. To the small group of fossil fuel-hating nutters in Conestoga Township (Lancaster County), PA, you may want to consider the considerable cost of launching yet another campaign funded by outsiders Community Environmental Legal Defense Fund (CELDF), the shadowy group behind much of this mischief. Be sure to ask the CELDF if they’re willing to pay tens of thousands of dollars in legal fees if you lose (as you surely will) a legal challenge to a pipeline ban in the township. Make them put their money where their huge mouth is…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH | Summit County

CORNy Effect on FERC: NEXUS Forced to Consider Alternative Route
March 30, 2015March 30, 2015

The NEXUS Pipeline is a proposed 42-inch, now $2 billion natural gas pipeline that will carry Utica and Marcellus Shale gas spanning 11 counties in Ohio, 3 counties in Michigan, and eventually connect to the Dawn Energy Hub in Canada (see NEXUS Gas Pipeline Pre-Files with FERC, New Details Come to Light). MDN told you about a local anti-drilling group that’s trying to stop it or change it, flying under the acronym of CORN–Coalition to Reroute NEXUS (see CORNy Opposition to NEXUS Pipeline in Eastern Ohio). It looks like the CORNballs may have had an effect. The Federal Energy Regulatory Commission (FERC) told Spectra Energy and the other companies building the NEXUS they’ve been getting a lot of complaints and FERC wants the companies to investigate an alternative route for the NEXUS, away from the CORNfields of Green (Summit County), OH…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Fireworks at First PA DEP Conventional O&G Board Meeting
March 27, 2015March 27, 2015

Well well. It seems by giving out the consolation prize of putting PIOGA (the Pennsylvania Independent Oil & Gas Association) and other industry reps on the PA Dept. of Environmental Protection’s newly created conventional board isn’t working out quite as well as expected for Acting DEP Sec. John Quigley (see PA Marcellus Industry Consolation Prize: DEP Conventional Board). While PIOGA and other industry associations were denied a seat on the arguably more powerful Oil & Gas Technical Advisory Board (TAB), they were given a seat (and a voice) on the Conventional Oil and Gas Advisory Committee (COGAC)–a rule-making board that covers traditional, vertical-only drilling. At the inaugural meeting of COGAC, yesterday, there were fireworks from PIOGA and others…
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Anchor Drilling Fluids | Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Jefferson County (OH) | Ohio | Regulation

When the OH “CURE” is Worse than the Disease: Antis Nit Pick
March 27, 2015March 27, 2015

Sometimes the CURE is worse than the disease. Such is the case with the anti-drilling Communities United for Responsible Energy (CURE) in eastern OH. The group agitated and squawked and carried on with such histrionics that they’ve gotten the Ohio Dept. of Natural Resources (ODNR) to order an oilfield services company to shut down a satellite location in Jefferson County, OH. The offense? Depends on who you ask. The company, Anchor Drilling Fluids, says it didn’t have a permit to store excess drilling mud–the stuff used by drillers to keep a drill bit cool and lubricated and free of bacteria. The ODNR says Anchor was recycling at that site and lacked a proper waste recycling permit. Question: If you mix drilling mud at a well site but don’t use all of it, and you then truck it back to HQ to store it for a few days or weeks before taking it somewhere else, is that “recycling”? Apparently it is for the ODNR…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Obi-Wan Quigley: These are Not the TAB Droids You’re Looking For
March 26, 2015March 26, 2015

Pennsylvania’s Acting Dept. of Environmental Protection (DEP) Secretary, John Quigley, continues to come under fire from PA Republican legislators over his (so far) less-than-transparent operation of the department–especially over firing the former Oil & Gas Technical Advisory Board members and replacing them with his own people, including so-called “non-voting” members (see Why did PA DEP Acting Sec Quigley Mass Fire Gas Advisory Board?). Since he’s losing the PR battle on that front, he’s changed tactics, referring to the TAB almost as window dressing…no big deal…they don’t even have any authority or power to really do anything…nothing to see here, these are not the droids you’re looking for, move along…
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