Regulation

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    EDF Endorses Drilling & Fracking Again, Sort Of

    Former Mayor of New York City Michael Bloomberg, a very wealthy Democrat who ran as a Republican and then changed to become an Independent, along with the mostly anti-drilling head of the Environmental Defense Fund, Fred Krupp, teamed up to write an op-ed which they sent around to, well, everyone, including MDN. The New York Times picked it up and ran it, so we though we would insert it below. It essentially says regulations so strict they force the breath out of shale drillers is a good thing. So let’s continue to let them drill, as long as they jump through fractals of hoops while they do it.

    The piece is noteworthy because the EDF, the “best” of the anti-drilling wacko so-called environmentalist organizations, frequently is criticized by their wacko “green” brethren because they won’t call for an outright ban on all shale drilling. And indeed in this op-ed Krupp endorses shale drilling and fracking–but like we said, as long as it’s regulated so tight it leaves drillers with little profit or incentive…
    Read More “EDF Endorses Drilling & Fracking Again, Sort Of”

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    Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law

    Anti-drilling Democrat PA Rep. Robert F. Matzie (District 16) is set to introduce new legislation in the Republican-controlled PA House that will make it nearly impossible for seismic testing to take place in the state. He intends to introduce a bill that automatically assumes seismic testing is responsible for damage to property within 1,000 feet of where it happens. If a thumper truck goes down your road, and you want to get that crack fixed that’s been in your basement wall for the past 10 years, here’s your chance. Just claim seismic testing is at fault and send the bill to the testing company. Nuts.

    Here’s the rather funny announcement from Matzie saying this legislation is really not anti-drilling, oh no, and that he only wants to protect Pennsylvanians from evil, nasty seismic testing companies…
    Read More “Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law”

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    Altoona Hearing on Latest EPA Outrage: Redefining Clean Water Act

    The latest breath-taking power grab attempt by the rogue and out-of-control federal Environmental Protection Agency was highlighted at a Congressional hearing held yesterday in Altoona, PA. The EPA wants to redefine which bodies of water fall under the 1972 Clean Water Act–so that the agency essentially would oversee not only “navigable waterways” but all waterways, usurping states rights in the process. It is, as Congressman Bill Shuster (from PA) said, more evidence of President Obama’s “imperial presidency”–by which he means Obama is grabbing power by force that is not his Constitutionally. The hearing yesterday was an attempt to point out the perils of the EPA’s latest overreach.

    Shale drillers clearly understand the implications and at least one attended to voice concerns. According to CONSOL Energy, the new “guidelines” from EPA would add upward of $10 million per natgas pipeline they install due to the delays, paperwork and new hoops they will need to jump through. It is unnecessary and (in our opinion) unconstitutional…
    Read More “Altoona Hearing on Latest EPA Outrage: Redefining Clean Water Act”

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    Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters

    Queen BeeIn a hilarious set of meetings with reporters in Harrisburg, PA, Democrat primary candidate for governor Allyson Schwartz had a spitting and sputtering fest. We truly wish we were there. She repeatedly attempted to lob verbal molotov cocktails at both Republican Gov. Tom Corbett (running for re-election) and at her chief primary rival and fellow anti-driller Tom Wolf. But the verbal bombs she lobbed just wouldn’t go off–and one of them exploded in her own face. At times pleading and at other times scolding, Schwartz essentially begged reporters to criticize Wolf and Corbett on her behalf.

    One of those reporters had had enough and asked her: since Tom Corbett has released 10 years of tax returns, why don’t you? Schwartz went nearly apoplectic. How DARE a reporter challenge the Queen Bee!? Her response was, essentially, “good for thee but not for me.” Which is the way anti-drillers like Schwartz always operate, with double standards…
    Read More “Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters”

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    Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?

    soldOn Friday two major stories developed involving Norse Energy. You may recall Norwegian-based Norse Energy rolled the dice and placed all their bets on shale drilling in New York State, leasing some 180,000 acres, of which 130,000 acres are in the Marcellus and/or Utica Shale region. Never in their wildest dreams did Norse believe it would take six years or more for the state to allow high-volume hydraulic fracturing. Things started to go downhill for Norse when landowners sued to say Norse did not have the right to continue the leases indefinitely (beyond five years) because of New York’s tardiness in approving fracking (see New Rough Patch for Norse Energy: Force Majeure Lawsuit). Eventually the state’s ongoing moratorium on fracking led to Norse’s bankruptcy (see Lights Turned Off, Door Closed – Good Night, Norse Energy). Norse sued the state to force it to release fracking regulations so their remaining asset, the leases, could be sold for at least some value to compensate investors (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs).

    Here’s where it gets complicated. On Friday in U.S. bankruptcy court, three bids for the leases and other company assets were unsealed. The highest was for $2.65 million–which is pennies on the dollar compared to the value of the company just a year ago before NY’s action forced it into bankruptcy. The New York Post reported the company behind the winning bid was hedge fund Mason Capital. From what MDN is able to determine, that may not be correct. The highest bid was from Any Acquisition, LLC–which may or may not be backed by Mason Capital. More important, there has been no official word that the judge awarded the sale to anyone on Friday. Below we tackle a complex deal-in-the-making and sort it out with help from our friends at NGI’s Shale Daily, who did some proper, old-fashioned reporting and got the real goods…
    Read More “Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?”

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    NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah

    On Friday a lower court judge heard testimony in the “Article 78” case brought by Norse Energy and the Joint Landowners Coalition of New York (JLCNY) against Gov. Cuomo, Dept. of Environmental Conservation Commissioner Joe Martens, and State Health Commissioner Nirav Shah–to force the release of new fracking regulations. Sadly, the man who is supposed to work for the residents of New York, Attorney General Eric Schneiderman, decided instead he works for the man-child who can’t make a decision, Andy Cuomo, so he filed a motion to dismiss the Article 78 lawsuit brought by Norse and the JLCNY (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo). The judge on Friday held a hearing to consider that motion. Fortunately, the motion to dismiss was not granted. Not yet anyway.

    The heart of Friday’s hearing centered on the issue of, “How long is long enough?” for the state to conduct a review and release new drilling regulations. We have quotes from various sources who were there. It was obvious the judge grilled the pro-drilling side harder than the rep from the AG’s office. However, near the end (as you’ll see below), the AG rep shot herself right in the foot and perhaps tilted the chances for the lawsuit to go forward in favor of Norse/JLCNY…
    Read More “NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah”

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    CONSOL to Begin Drilling at Pittsburgh Airport Next Week

    coming next weekThe last hurdle has been jumped for CONSOL Energy with their plan to begin drilling at Pittsburgh International Airport. MDN has extensively covered the plan put forward by CONSOL to drill 47 wells on airport property–a plan that will ultimately net the airport something like $1 billion in revenue (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). The last hurdle was zoning permit approval from Findlay Township, where the property is located. MDN pointed out more than a month ago that Findlay was holding things up (see Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport).

    Wednesday night, Findlay supervisors voted 2-1 to approve CONSOL’s permits to drill at the airport. But not without 23 “conditions” attached to their approval, including limits on noise, working hours, creation of a public complaint hotline and air monitoring throughout drilling operations. Still, CONSOL was happy with the end result and says they’re ready to begin, as early as next week, a drilling program that will be “a model for the entire nation”…
    Read More “CONSOL to Begin Drilling at Pittsburgh Airport Next Week”

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    Republicans (!) Seek to Slow Approval of Deer Lakes Park Lease?

    To us, a somewhat strange case in the ongoing effort for Allegheny County, PA to lease land under Deer Lakes Park for drilling. Allegheny County Executive Rich Fitzgerald squeezed Range Resources hard and negotiated a deal to allow Range to drill under (not on) Deer Lakes Park for a $4.7 million in signing bonus and 18% royalties, which will net the county something over $70 million over the next 20-30 years (see Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal). It’s a sweet deal. The only thing that remains is for the 15-member county council to approve it.

    The strange part is a bid by a pair of Republicans to enlist outside legal counsel to review the lease–when council already has its own attorney for that purpose. Normally it’s the Republicans who are pro-drilling. The effort to get outside counsel, which failed in committee along a party-line vote of 5-2, is nothing more than a “stall tactic” according to Rich Fitzgerald. That’s the strange part–why would the Republicans want to delay this lease? Council will meet next Wednesday to take up the Deer Lakes Park lease again–hopefully to approve it…
    Read More “Republicans (!) Seek to Slow Approval of Deer Lakes Park Lease?”

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    New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations

    The Babst Calland law firm has put out an alert that proposed new rules recently issued by the Pennsylvania Environmental Quality Board to require “reasonably available control technology” (RACT) will affect “hundreds of facilities” that produce nitrogen oxides (NOx) or volatile organic compounds (VOCs), requiring them to spend money and install new equipment. There are nine source categories covered by the new rule, and although none of those categories say “compressor stations,” one of them is “turbines” which may cover compressor stations. At any rate, pipeline compressor stations are a major source of NOx and VOCs and will almost certainly be affected by the coming changes.

    Here’s the Administrative Watch for the RACT proposed rules, issued by the legal beagles at Babst Calland:
    Read More “New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations”

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    PA HB 1684 Guaranteed Minimum Royalty Act Hits a Snag

    For nearly a month, the National Association of Royalty Owners (NARO) Pennsylvania Chapter has been pushing for passage of House Bill (HB) 1684, the Guaranteed Minimum Royalty Act (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). HB 1684 would ensure landowners get a minimum 12.5% in royalty payments from drillers. This is in response to alleged rumors that Chesapeake Energy has been screwing landowners by deducting transportation and other costs in a somewhat underhanded way. HB 1684 is supposed to stop that–going forward.

    However, HB 1684 has “hit a snag” according state Rep. Matt Baker. As MDN has previously noted, this particular bill has divided landowners and drillers, something we don’t see often (see Rare Schism Between Landowners & Drillers over PA Royalty Law). The latest on the fate of HB 1684:
    Read More “PA HB 1684 Guaranteed Minimum Royalty Act Hits a Snag”

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    800 NY Officials Work Against Constituents to Ban Fracking

    A group of 800 elected New York State officials has decided to actively work against the best interests of their constituents. Only in New York, right? A group calling themselves Elected Officials to Protect New York, mostly comprised of members from outside of where shale drilling would happen, are spreading lies about the so-called dangers of drilling and calling on the state to extend a nearly six year-old moratorium. Which of course is a joke–the ongoing moratorium is in essence a ban. Extending it is a euphemism for ban it permanently.

    Their motivation is irrational fossil fuel hatred. They believe we can stick up solar panels and wind mills all over the place and replace those evil, nasty fossil fuels–including “fracked” natural gas. They are, in a word, nuts. Here’s the bupkis emanating from the so-called “Elected Officials to Protect New York”…
    Read More “800 NY Officials Work Against Constituents to Ban Fracking”

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    Anti Group Stops Wastewater Injection Wells Near Mansfield, OH

    Anti-drilling group Frack Free Ohio (we call them Fracking Up Ohio) is claiming victory in stopping a pair of proposed frack wastewater injection wells that were planned for Mansfield (Richland County), OH. Fracking Up spread enough lies and innuendo around to confuse 63% of the voters into passing a resolution opposing the injection wells. Since the company planning to build the injection wells just wasted $200,000–now down the toilet–you can expect other Utica-related companies to give Mansfield a pass in the future. Bye bye jobs. Bye bye increased tax revenues. Bye bye Mansfield.

    Now the folks from Fracking Up Ohio want to spread their anti-drilling disease to other locations–like Ashland and Crawford counties…
    Read More “Anti Group Stops Wastewater Injection Wells Near Mansfield, OH”

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    More Pushback from PA Residents on Proposed Mariner East Pipeline

    pushing backAs part of the good news story about the “makeover” of the Marcus Hook refinery near Philadelphia, MDN came across more details about Sunoco Logistics’ plans to potentially use eminent domain in order to lay pipeline that will bring natural gas liquids, like ethane, to Marcus Hook. You may recall a few weeks ago we told you Sunoco Logistics had made a request with the Pennsylvania Public Utility Commission (PUC) to exempt the Mariner East pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline (see Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline). A court case in Washington County, PA challenged that right in light of the decision from the PA Supreme Court that grants zoning rights, even for oil and gas development, to local municipalities.

    Sunoco Logistics is now being challenged in court in Chester County, questioning their right to become a “public utility corporation” with the right of eminent domain. Just to confuse the issue further, a public utility corporation is not the same thing as being a public utility in PA. However, if Sunoco Logistics is granted public utility corporation status, it means they have the right of eminent domain but are overseen by the Federal Energy Regulatory Commission and not by the PA PUC. In other words, they get the benefits of being a public utility, without the “burdens” of PA state oversight. That has some residents up in arms…
    Read More “More Pushback from PA Residents on Proposed Mariner East Pipeline”

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    NY DOH Docs Show Geisinger Fishing for $, Ralph Nader Lurking

    The anti-drilling Seneca Lake Pure Waters Association and the Gannett Albany Bureau filed identical Freedom of Information Law (or FOIL) requests in Jaunary of this year to get information about the so-called review of health effects from fracking, a review being conducted by the NY Dept. of Health (DOH) and it’s resigning Commissioner, Nirav Shah. Some five CDs and one DVD full of information later and we have a few interesting tidbits. One tidbit is that Geisinger Health System, which famously launched a multi-year study of the “health effects” of fracking in PA without any money to fund the study (see PA Marcellus Health Study Still No Pulse – Needs Extra $24M), tried to enlist Shah and the NY DOH, no doubt believing NY is flush with Wall Street cash. NY politely declined.

    We also learn the wacky Ralph Nader requested a meeting with NY Dept. of Environmental Conservation Commissioner Joe Martens. Ralph wants all fracking everywhere–from here to Pluto–to stop. Martens politely declined the meeting (time waster for Joey). Here’s an overview, based on the documentation, of what the DOH has–and has not–done in their ongoing, never ending review of the “science”…
    Read More “NY DOH Docs Show Geisinger Fishing for $, Ralph Nader Lurking”

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    Lawyers Give Heads-up on Cobra Pipeline in Warren, OH

    MDN makes no claims to omniscience when it comes to Marcellus and Utica drillers and pipeline operators–but it’s not often a completely new name pops up to surprise us–something we had not heard of before. Such is the case with Cobra Pipeline. According to the Cobra Pipeline website: “Cobra Pipeline Co., LTD is an Ohio based intrastate natural gas pipeline company headquartered in Willoughby, Ohio. Cobra Pipeline Co, LTD owns approximately 300 miles of intrastate gas pipeline and compression within the State of Ohio. Our system connects natural gas suppliers with major interstate transmission pipeline systems. Cobra Pipeline provides competitively priced gas transportation service as well as operating a safe and efficient gas pipeline system.”

    So it appears Cobra is a local gathering system that perhaps at one point connected conventional (vertical only) wells, but increasingly now connects unconventional (shale) wells to larger pipeline systems. The reason it popped up on the radar is because a couple of lawyers recently spoke to a small group of landowners in Marietta (Washington County), OH about Cobra’s plans to come through that area–mostly along an existing route used by Columbia Pipeline. The lawyers were there to give landowners a heads-up and tips for how to negotiate the best deal for a pipeline easement, and what to do if eminent domain rears its ugly head…
    Read More “Lawyers Give Heads-up on Cobra Pipeline in Warren, OH”

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    Striking Similarities Between Keystone XL Pipeline & NY Fracking

    The Keystone XL Pipeline and high volume hydraulic fracturing (fracking) in New York State have a lot in common. In fact, we were thunderstruck by the similarities when reading in the Wall Street Journal on Saturday that President Obama has, once again, delayed a decision on the Keystone–likely until after the fall elections. Note how these two are similar: both the Keystone and NY fracking have been in limbo, on hold, for almost the same amount of time–just about six years; both are being delayed by indecisive Democrats who fear the rabidly left nutters in their party that make a lot of noise; both “leaders”–President Obama and Gov. Cuomo–are depending on the media to assist them and for voters to ignore their torpidity on this vital issue; both “leaders” are flagrantly violating law and litigation has ensued in both cases.

    Not that it is a Marcellus or Utica story per se, but below is the WSJ article from Saturday. See if you too notice how closely the Keystone XL parallels fracking in NY…
    Read More “Striking Similarities Between Keystone XL Pipeline & NY Fracking”