Regulation

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    Rare Schism Between Landowners & Drillers over PA Royalty Law

    Several weeks ago MDN told you that the Pennsylvania chapter of the National Association of Royalty Owners had sent out a flash email to encourage support of House Bill (HB) 1684, the Guaranteed Minimum Royalty Act. The bill would clear up shady dealings from Chesapeake Energy (and perhaps others) in deducting certain expenses leaving some landowners with checks for royalties way under the 12.5% guaranteed minimum (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). Not long after NARO sounded the rallying cry, the Pennsylvania Farm Bureau joined NARO in supporting HB 1684 (see PA Farm Bureau Joins Chorus Against Chessy on Royalty Issue).

    However, this is one issue on which landowners, who are strongly pro-drilling, and the drilling industry itself, part ways. The Marcellus Shale Coalition, through its new grassroots organization called Shale Advocates, is asking shale supporters to oppose HB 1684. According to the Shale Advocates website, they want their supporters to “Take a few moments to contact your representative and let them know you oppose HB1684 and any effort by the Commonwealth to intervene in private contracts. Here’s your opportunity to be heard. Your voice will make a difference.” After HB 1684 has been larded up with amendments, NARO met to consider whether or not they would still support it and in the end, they see more to like than no like about the bill–so they issued the following press release last week to reaffirm their strong support:
    Read More “Rare Schism Between Landowners & Drillers over PA Royalty Law”

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    Exxon Mobil Shaken Down by NYS Comptroller Thomas DiNapoli

    GoodFellasThe Comptroller of the State of New York, Thomas DiNapoli, is the sole person in charge of The New York State Common Retirement Fund–a fund with $160 billion in it. DiNapoli, or rather the NYS Common Retirement Fund, owns $1.02 billion of Exxon Mobil stock. Unfortunately, DiNapoli is an anti-drilling bully (see our list of MDN articles here). When someone like DiNapoli has you by the short hairs and is pulling, you ask him how high he wants you to jump. That’s what’s happening to Exxon Mobil.

    DiNapoli is forcing Exxon Mobil to write a cockamamie report on the so-called hazards of fracking, to be released this September on the Exxon website. So what if the report shows there are no (or very few) actual hazards in fracking? Yeah, right. They don’t call people like Tommy DiNapoli a goodfella for nuttin’. Exxon is getting shaken down by a bullying investor that holds a lot of stock. And not just any investor–but a government official to boot. It’s sleazy, it’s disgusting, and it’s New York politics. What do you think Exxon’s report on fracking will say?…
    Read More “Exxon Mobil Shaken Down by NYS Comptroller Thomas DiNapoli”

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    UN Global Warming Panel Tells Delegates Get Enlightened…or Else

    Not our usual fare here on MDN, but important to the Marcellus and Utica nonetheless. The United Nations will conduct closed door (i.e. secret) sessions this week in Berlin, Germany on the topic of mythical global warming and how to try and convince those pesky Americans (and other citizens of the world who think for themselves) to bend over and take their medicine. The head of the United Nations scientific panel on climate change “urged” diplomats and scientists to show “enlightenment” on Monday, as they begin a week-long meeting aimed at spelling out in “plain terms” what options the world has if it wants to prevent “catastrophic global warming.”

    Translation: Get your *$%# heads screwed on straight and regurgitate the party line: We believe in global warming. We believe in global warming. We believe in global warming…
    Read More “UN Global Warming Panel Tells Delegates Get Enlightened…or Else”

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    Vicariously Attend FERC Scoping Hearing on Constitution Pipeline

    microphone in auditoriumMDN editor Jim Willis attended the Federal Energy Regulatory Commission (FERC) scoping hearing for the Draft Environmental Impact Statement (DEIS) for the Constitution Pipeline last Wednesday night (April 2nd) in Afton, NY. Held at the local Afton High School auditorium, there were 250-300 people in the audience. Some 50 or so signed up to address the three FERC representatives who were there to listen to public testimony about the DEIS and proposed plan to build a 30-inch, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY to carry cheap, abundant Marcellus Shale gas to markets that include New York City and New England. The pipeline project is projected to cost $683 million (money pumped mostly into the upstate New York economy), and provide 1,300 temporary jobs while it’s built.

    To say it was a lively audience would be an understatement. Jim stuck around for more than two hours to listen and observe. In one sense the hearing was not unlike others Jim has sat through. But in another sense, it was different–even instructive. More than one speaker on the anti-drilling side bemoaned the fact that Williams and the Constitution Pipeline has “split the community” and has “pitted neighbor against neighbor.” Really? What Jim witnessed was a vibrant, healthy, vigorous political discussion not unlike the discussions neighbors have been having with neighbors since the founding of our great country. We gather and engage in a spirited debate–sometimes shouting matches–to avoid killing each other. We are not (yet) a banana republic. We are still (for now) a nation of laws. Loud and boisterous debate is our proud heritage and it should be encouraged–not discouraged. What Jim saw heartened him, instead of the opposite.

    And what did Jim see? You could say the speakers broke into two camps–for and against the pipeline. But that would be too simplistic. Come along with Jim as he introduces you to several speakers from that night, representing not a simple for/against mindset, but a continuum of outright support to outright opposition–with many shades in between. We’ll do it through the lens of four archetypes that we think best represent the passion, emotions and arguments presented at the meeting…
    Read More “Vicariously Attend FERC Scoping Hearing on Constitution Pipeline”

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    OH EPA Issues New Regs for Drillers, Looks for “Fugitive” Methane

    On Friday the Ohio Environmental Protection Agency (OEPA) lowered the boom on shale drillers in the state. Although it’s been expected for some time, the OEPA suddenly issued new rules under their General Permit Program that require drillers to use infrared cameras to scan equipment being used at drill sites once per quarter. For what? Methane, of course. So called “fugitive methane” that, you know, contributes to mythical global warming (that doesn’t really exist). Oh the “fugitive” methane may exist–a little bit. But it’s tie to causing non-existent global warming has never been proven. Makes no difference. All the Kool Aid drinkers are so convinced of a tie between methane and warming that it’s an article of scientific faith now–it’s “scientific consensus” so that means it’s real (at least in their minds). Never mind that said drillers are in the business of capturing as much methane as they can because every atom of it they grab they can sell. But hey, such brutal common sense doesn’t play well with the warmists. Nasty drillers can’t be trusted to do a good job.

    The Environmental Defense Fund, the least offensive of the environmentalist wacko groups, was positively gushing with praise for OH Gov. John “foreigner hunter” Kasich and his Republican administration for implementing the new standards–especially since Republicans are such evil, vile things, ya know. Somehow those Republicans swerved into the doing something good for a change, according to the EDF…
    Read More “OH EPA Issues New Regs for Drillers, Looks for “Fugitive” Methane”

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    Anti-Drillers Force 3rd Vote on Frack Ban in Youngstown

    Even the Democrat Mayor of Youngstown, OH knows that passing a fracking ban for the city would be a “job killer.” Too bad the nutters on his side of the political isle don’t listen to reason. In January MDN told you that the nutters had gathered enough signatures to force a third time-and-money-wasting vote on whether or not the city should outright ban fracking within its borders (see Third Time the Charm? Youngstown Anti-Drillers Try Again for Ban). Not that passing a ban would make a difference–there’s little chance of any active drilling in and around Youngstown. It would be a poke in the eye–spit in the face–of the drilling industry. The drilling industry notices such things and elects to take their business elsewhere when it happens. Hence Youngstown Mayor John A. McNally’s comments last week encouraging residents to reject the ban when they vote on May 6th.

    Along with Mayor McNally, local union reps from the American Federation of State, County and Municipal Employees Ohio Council 8 says three votes is enough and it’s time for this crap to stop…
    Read More “Anti-Drillers Force 3rd Vote on Frack Ban in Youngstown”

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    Lawyers Gutting Act 13 Law Claim PA DEP Covers Up Water Problems

    gutted deerThe Pennsylvania Dept. of Environmental Protection (DEP), along with the Act 13 law, has come under heavy fire from anti-drillers and the seven selfish towns who want to overturn Act 13. Even though the DEP is dedicated to the health and safety of the people and environment in PA, they’re regularly (falsely) accused of colluding with “industry” and throwing both people and the environment under the metaphorical bus. The latest accusations against the DEP stem from the Act 13 lawsuit remanded by the PA Supreme Court back to a lower court. Anti-drillers are doing their best to gut the protections afforded in Act 13 because they want the chance to re-do it and “do it right” (meaning onerous new regulations). And so after the seven selfish towns pulled on one Act 13 thread (zoning) and won, their action now threatens to unravel the entire law (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision).

    Lawyers for the seven selfish towns who are making an attempt to gut the entire Act 13 law in the lower court are accusing the DEP of intentionally suppressing information about contamination of private water wells due to drilling-related activity. The lawyers, along with a sycophantic media willing to regurgitate their claims, say that DEP regulators don’t keep files or issue violation notices to drillers in cases where the driller reaches a private settlement with a landowner. That is, they say it’s a government cover-up of enormous proportions. Which is, of course, preposterous. But it sure sells a lot of newspapers…
    Read More “Lawyers Gutting Act 13 Law Claim PA DEP Covers Up Water Problems”

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    The Human Cost of Delay in New York — Absentee Husband

    New York’s ongoing delay in allowing shale drilling has very real costs for very real people. Some losers say, “That gas has been in the ground for a million years, it ain’t going anywhere. Let’s take our time and figure this out.” Waiting has a cost too–especially since drilling has proven to be safe in over 60,000 shale wells drilled in other states. The 70,000-member Joint Landowners Coalition of New York has sued Gov. Cuomo because he has, in essence, stolen the football off the field of play and has run out of the stadium with it. Under the rules (i.e. New York law) you can’t do that. You must make a decision in a timely manner because lack of decision is recognized as causing harm. But the JLCNY is not the only party to the lawsuit that would force Cuomo to complete the review process. There are also several individuals suing Cuomo too.

    An article in today’s New York Post looks at one of those individuals–Jon Kark. Jon is the owner, with his dad, of a 353-acre farm in Broome County, NY–just a few miles from where MDN editor Jim Willis is writing this very article. Jon is the sixth generation of Karks to own that land. In order to keep the land and the farm operating, Jon is never home–literally. In 2009 Jon had to leave town for a job that will pay the bills, including steep NY taxes assessed on his property. He gets home one or two weeks every year, and that’s it. He’d rather be at home working the farm, but he can’t afford it. His family can’t afford it. He could be at home working the farm, if Cuomo would get off his rear-end, suck it up and make a manly decision for a change, instead of dithering around, showing total lack of leadership…
    Read More “The Human Cost of Delay in New York — Absentee Husband”

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    Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline

    It appears the PA Supreme Court’s ill-fated decision to toss out zoning provisions in the Act 13 drilling law is now affecting more than just drilling. Sunoco Logistics is trying to build a new natural gas liquids (NGL) pipeline that spans the state–running from western PA all the way to the Marcus Hook refinery near Philadelphia (see Sunoco Logistics Planning Second Mariner East Pipeline for NGLs). MDN reported in January that Sunoco Logistics has a lot riding on a court case in Washington County, PA because they are attempting to use eminent domain to force some landowners to allow the pipeline across their property (see PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case).

    We now throw in a new wrinkle for Sunoco Logistics and the Mariner East NGL pipeline: Sunoco Logistics has made a request to the state Public Utility Commission (PUC) to exempt the pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline. Based on the PA Supreme Court decision in December, two Philadelphia state senators say Sunoco Logistics does not have the right to be exempted from local zoning…
    Read More “Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline”

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    Litigious OH Sierra Club Sues ODNR (Again) Over Fracking

    Once again, the ever-litigious, fundraising Ohio Sierra Club (an organization no one should ever support with their money) has sued the Ohio Dept. of Natural Resources because the ODNR is not jumping to every Sierra Club demand to provide emails in triplicate on the topic of crafting new fracking regulations. The Sierra Club is on a fishing expedition. They think they can use language in ODNR emails in future fundraising appeals (See! See! The ODNR sent an email to Chesapeake Energy!) The ODNR is not playing along with their scam, and so the Sierra Club has launched yet another lawsuit (third time in two years). Hey, the lawyers are on staff so who cares, right?

    Here’s the latest fundraising press release from the OH Sierra Club:
    Read More “Litigious OH Sierra Club Sues ODNR (Again) Over Fracking”

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    JLCNY Legal & Moral Response to NY AG’s Request to Dismiss Lawsuit

    scales of justiceYesterday MDN told you about New York’s shameful Attorney General, Eric Schneiderman, had filed to dismiss the lawsuit brought by the 70,000-member Joint Landowners Coalition of New York that seeks to have the courts force Gov. Cuomo and his lieutenants to do their job and release new drilling regulations (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo). Immediately following our publication of that article, the lead attorney for the JLCNY, Scott Kurkoski, emailed MDN two legal documents he had filed in responding to the AG’s request to dismiss.

    The first document (embedded below) is the 43-page “Petitioners-Plaintiffs’ Memorandum of Law in Opposition to Motion to Dismiss”–the official response to Scneiderman’s shameful attempt to deny justice to residents of New York. It contains all of the legal reasons why the Article 78 case should move forward, and why Schneiderman’s request to dismiss should be denied. The second document (also embedded below) is a 113-page “Affirmation of Scott R. Kurkoski in Support of Petitioners-Plaintiffs’ Opposition to Respondents-Defendants’ Motion to Dismiss.” Only a lawyer can come up with a name like that! This second document is Scott essentially saying, “I’m a lawyer in this case with personal knowledge, and I support the JLCNY’s request to deny dismissing the case, and here’s why…” The first document contains the legal reasons why the case should move forward, the second document contains the moral/ethical reasons and pertinent background. Why read through a 113-page legal document?…
    Read More “JLCNY Legal & Moral Response to NY AG’s Request to Dismiss Lawsuit”

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    WV Chief of Homeland Security Not Concerned About Drill Cuttings

    For all the hoopla from anti-drillers in West Virginia over radioactivity in drill cuttings (leftover rock and dirt from drilling the borehole), and the disposal of those cuttings in landfills, you would think the state is in imminent danger of becoming a nuclear waste dump–glowing in the dark and visible from satellites passing through the night sky (see WV Anti-Drillers Continue to Harp on Drill Cuttings in Landfills).

    The chief of Homeland Security and Emergency Response for the West Virginia Dept. of Environmental Protection says the DEP recently tested drill cuttings from EQT heading to the landfill and found radiation levels to be so low, they were barely detectable. In his words, “I am not concerned about it”…
    Read More “WV Chief of Homeland Security Not Concerned About Drill Cuttings”

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    PA Farm Bureau Joins Chorus Against Chessy on Royalty Issue

    The Pennsylvania Farm Bureau is adding its considerable weight behind the effort to pass new legislation that will guarantee landowners in the state don’t get shafted by companies like Chesapeake Energy when it comes to royalty payments. As MDN has previously reported, the royalty situation in PA has turned messy with claims that Chesapeake Energy has engaged in an elaborate scheme to pass post-production costs on to landowners–costs they technically don’t have a right to deduct (see Chesapeake Shafting Landowners out of Royalties Mess Gets Messier). What it means is that some landowners are getting peanuts–far below the state mandated 12.5% minimum royalty.

    The Farm Bureau is up in arms because its members are up in arms–and so the organization is pushing for new legislation to plug the loophole that Chesapeake (and maybe others) are apparently exploiting…
    Read More “PA Farm Bureau Joins Chorus Against Chessy on Royalty Issue”

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    NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo

    In early March MDN told you the sad news that New York’s own Attorney General, Eric Schneiderman, is actively working against the residents of the state of New York by filing to dismiss a lawsuit brought by Norse Energy that would force Gov. Andrew Cuomo, DEC Commissioner Joe Martens and State Health Commissioner Nirav Shah to do their jobs and release new drilling regulations (see NY Attorney General Files to Dismiss Norse Lawsuit, More Delays). The 70,000-member Joint Landowners Coalition of New York also filed an “Article 78” lawsuit, similar to the Norse lawsuit.

    NGI’s Shale Daily is reporting that AG Schneiderman’s office has now filed a motion to dismiss this second lawsuit–fantastically claiming the JLCNY, which represents more than 70,000 New York landowners who want to see drilling commence, has “no standing.” Talk about chutzpah. Here’s the latest on the dysfunctional mess that is called New York State:
    Read More “NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo”

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    Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed

    In a letter to the editor published (amazingly) in the Pittsburgh Post-Gazette, Consumer Energy Alliance Mid-Atlantic executive director Mike Butler points out, in just a few paragraphs, the grave danger now hovering over Pennsylvania because of the PA Supreme Court’s poor decision to side with seven selfish towns to overturn important and large portions of the Act 13 law, and in danger from PA Democrats who want to stop all future Marcellus drilling in the state with an ongoing moratorium.

    Pennsylvania is at a crossroads and if her citizens choose poorly in the next election, they risk plunging the state into an economic disaster, as eloquently pointed out by Mr. Butler:
    Read More “Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed”

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    Rogue Obama EPA Goes on Methane Witch Hunt

    The recent Climate Action Plan to cut methane emissions emitted by the White House last week contains this ominous bullet point: “EPA will assess several potentially significant sources of methane and other emissions from the oil and gas sector. EPA will solicit input from independent experts through a series of technical white papers, and in the fall of 2014, EPA will determine how best to pursue further methane reductions from these sources.”(1) The good news is that the overbearing, out-of-control actions by the Obama EPA will only apply to drilling on federal lands. The bad news is that they will try to bully individual states to adopt the same new onerous regulations, thereby making federal regulations de facto in many locations.

    Will the EPA methane witch hunt affect the Marcellus and Utica region? Too early to tell whether PA, OH and WV will cave to Obama EPA pressure. Here’s an analysis of how onerous new regulations may affect several drillers with major operations in the Marcellus…
    Read More “Rogue Obama EPA Goes on Methane Witch Hunt”