Regulation

Industrywide Issues | Pipelines | Regulation

Industry Supports Bill Forcing FERC to Approve Pipelines <1 Year
March 6, 2014March 6, 2014

Apparently a year is not long enough for employees at the Federal Energy Regulatory Commission (FERC) to approve new pipeline applications. FERC is the agency charged with approving new interstate natural gas (and other types of) pipelines. It’s a long, arduous, and complex process to approve and build a new pipeline. You might think if an agency had 100% completed paperwork before them it wouldn’t take an entire year to evaluate and approve it–but indeed, it often takes longer. Much longer. Years, in fact.

Enter Congressman Mike Pompeo, Republican from Kansas. Last year he introduced H.R. 1900 which would bring some “discipline” to the process by making FERC approve or deny newly proposed pipeline projects within a year of receiving all necessary paperwork. Jeff Wright, director of FERC’s Office of Energy Projects, promptly threatened lawmakers, telling them if FERC is backed into a corner, the agency will simply start denying projects left and right (see FERC Warning to Lawmakers: Back Us in a Corner, You’ll be Sorry). We hadn’t heard anything further on H.R. 1900 since Wright’s threat, until we spotted this…
Read More “Industry Supports Bill Forcing FERC to Approve Pipelines <1 Year”
Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

Mt. Pleasant, PA Continues to Ride Range Over Water Ponds
March 5, 2014March 5, 2014

As we told you last week, when PA towns make up their own zoning laws for oil and gas drilling, chaos and confusion reigns, as is the case in Mt. Pleasant (Washington County), PA (see Mt Pleasant Twp Shenanigans re Range Request for Water Ponds). Mt. Pleasant, one of seven townships that successfully sued the state to overturn Act 13 effectively screwing every municipality in the state out of millions of dollars of impact fee money, continues their snit fit over Range using a few water ponds to drill new shale wells in non-Mt. Pleasant locations.

The board voted to uphold their zoning violations of four such ponds so Range has filed yet another lawsuit hoping they can find an impartial judge to set the matter straight. Here’s the latest…
Read More “Mt. Pleasant, PA Continues to Ride Range Over Water Ponds”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Political Opposites Unite to Form Pro-Fracking Group in NY
March 4, 2014March 4, 2014

The 70,000-member Joint Landowners Coalition of New York (JLCNY), along with the Broome County Farm Bureau and several Southern Tier labor unions formed a new group (perhaps confederation is a better word) yesterday called Southern Tier Residents for Economic Independence. The new group illustrates how the fracking issue unites groups of people that often are on opposite sides of the political spectrum. Many labor unions are pro-fracking, a little-known secret anti-drilling “environmentalist” groups like to hide since labor unions usually swing Democrat/Liberal with their voting block. The fact that unions are defecting to “the other side” on this issue is causing heartburn inside anti-fracking central–places like Citizen Action of New York and the Park Foundation. Such anti-drilling groups haughtily believe they “own” the labor unions. Problem is, rank and file union members didn’t get that particular memo.

Here’s the story of people with different political philosophies reaching across the isle for a righteous cause–shale drilling in NY…
Read More “Political Opposites Unite to Form Pro-Fracking Group in NY”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

OH Anti-Drillers Call for ODNR Chief’s Resignation Over PR Plan
March 4, 2014March 4, 2014

A few weeks ago we told you about the Ohio Dept. of Natural Resources’ brilliant communications plan to counter the wackos in their state on the issue of drilling under (not on) one state forest and two state parks (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). We also told you that this issue won’t go away for a while, and that Gov. John “foreigner hunter” Kasich has already backed down (see The Disgusting PR Mess in Ohio – No One Smells Pretty). As we predicted, the wacko contingent in Ohio never lets a good manufactured crisis go to waste, and so now a group of the nuttiest of the nuts is calling for the resignation of ODNR chief James Zehringer.

The only problem is, Kasich & co seem to be so intimidated by these kooks, you have to wonder if he’ll cave and make Zehringer a sacrificial lamb on the green altar…
Read More “OH Anti-Drillers Call for ODNR Chief’s Resignation Over PR Plan”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

Williams Happy with FERC Progress on NE Pipeline Expansions
March 4, 2014March 4, 2014

Yesterday Williams issued a press release touting last Friday’s Federal Energy Regulatory Commission (FERC) issuance of a final environmental review for the Transco Pipeline’s Rockaway Lateral and Northeast Connector expansions. The final review is prelude to a final decision by FERC to green light the projects, something Williams (the owner of Transco) clearly believes will happen. The final FERC decision will be issued this spring. When it is, and when Williams builds those expansions, it means more gas will flow to New York City by next winter–in time for the winter heating season.

The irony is, of course, that none of the gas flowing through the Transco to NY will be from New York State itself but instead will come mostly from the Marcellus Shale in Pennsylvania. Keep an eye out for the loonies who are bound to come out of the woodwork to oppose the expansion. Perhaps we’ll see more nutjobs like those that opposed the now-functioning Spectra Energy pipeline to Manhattan (see NYC Pipeline Protesters Get Naked, Paint Themselves Green). Here is yesterday’s “attaboy FERC” announcement from Williams:
Read More “Williams Happy with FERC Progress on NE Pipeline Expansions”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Public Opinion | Regulation | Statewide NY

Binghamton Newspaper’s Informal Fracking Poll – Cast Your Vote Now
March 4, 2014March 4, 2014

Just a quick word of encouragement to participate in an informal poll on the Binghamton Press & Sun-Bulletin website that asks the question: “Should New York approve natural gas drilling?” This poll has been active since late last week, so we expect them to shut it down at any time–be sure to vote right away (if that’s your pleasure). As of this morning, some 18,133 people had voted. Here was how the results stood…
Read More “Binghamton Newspaper’s Informal Fracking Poll – Cast Your Vote Now”
Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Public Opinion | Regulation | Statewide NY | Statewide PA | Williams

Constitution Pipeline Payments to Groups – Donations or Payola?
March 3, 2014March 3, 2014

What do you call it when a company pays money to local organizations and agencies before the project has been fully approved by federal, state and local agencies? These payments, mind you, are not fees for permits or licenses, but voluntary chunks of money offered to groups that may be affected by the project if it’s built–in this case a pipeline. Is it called, Good corporate citizenship? Being a responsible member of the local community? Or perhaps, payola?

Regardless of what you call it, the Constitution Pipeline, a desperately needed natural gas pipeline that will run from the gas fields of Susquehanna County, PA to central New York where it will connect to two major interstate pipelines, has now paid out more than $1 million in “community grants” to help build support for the pipeline. Is that a good thing, or bad? We think it’s time to have that discussion…
Read More “Constitution Pipeline Payments to Groups – Donations or Payola?”
Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

Will WV Lawmakers Have Guts to Tackle Cuttings in Landfills Bill?
March 3, 2014March 3, 2014

Two weeks ago MDN told you about a House Bill (HB) 4411, actively under consideration by the West Virginia state legislature, that would codify into law the right for landfills in the state to accept Marcellus and Utica Shale drill cuttings (see WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition). At the time a parade of speakers spoke against the bill with one speaker (from the Independent Oil and Gas Association of West Virginia) speaking in favor. The bill would codify into law the right for landfills to accept larger amounts of cuttings, which anti-drillers object to because it encourages more drilling.

What we didn’t know at the time is why the WV Dept. of Environmental Protection is supporting the bill: because it will codify into law the protections they drafted as a temporary measure (now in place). Yes, protections, like separating the cuttings into their own cell within a landfill, the use of special liners, and lechate monitoring. The DEP is keeping a close eye on this issue and believes the proper place to have the debate about it, along with a resolution to the debate, is in the state legislature–if they have the intestinal fortitude to address it…
Read More “Will WV Lawmakers Have Guts to Tackle Cuttings in Landfills Bill?”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Voting for the Lesser of the PA LibDem Loonies
March 3, 2014March 3, 2014

There’s at least a few prominent Democrats running in the primary for Lieutenant Governor that have departed from the Democrat Party’s lunatic demand to stop all Marcellus drilling in the state–precious few, but at least a few that don’t share that view. So if you’re a registered LibDem and you must (hold your nose and) swing the lever for a Dem, you might want to consider who should get your vote based on their loony rating.

Hint: Don’t vote for Brenda Alton or Brad Koplinksi, both support an immediate ban on further shale drilling…
Read More “Voting for the Lesser of the PA LibDem Loonies”
Accidents | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Marcellus Industry’s Biggest Fines & Biggest Violators
February 28, 2014February 28, 2014

NPR’s StateImpact Pennsylvania is only too happy to bring us the breathless news of who the baddest of the bad were in the Marcellus drilling industry in PA for 2013. How do they measure who was naughty and who was nice? Well, they’re all naughty (right?), but the naughtiest were those who paid the biggest fines last year. It may surprise you to know that the when you add all fines together, the company paying the most in 2013 was Williams, a pipeline operator–not a driller. Williams settled up in 2013 for violations going back several years, mostly related to accidents and drilling mud spills that resulted from foul weather (including Hurricane Irene and Tropical Storm Lee). Williams’ total fine tab in 2013 was $388,694 (for violations occurring in 2011-2012). Coming in at #2 was National Fuel Gas Company’s Seneca Resources subsidiary. They were clipped $377,000 for violations occurring from 2010 to 2013.

Below are the top 5 violators cumulatively (adding up all of their violations), along with the top 5 biggest single violations from last year, in the PA Marcellus drilling industry:
Read More “PA Marcellus Industry’s Biggest Fines & Biggest Violators”
Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County

Mt Pleasant Twp Shenanigans re Range Request for Water Ponds
February 28, 2014February 28, 2014

This is what happens when local townships create their own oil and gas zoning laws: chaos and confusion. Like that in Mt. Pleasant (Washington County), PA over water impoundments (ponds) that Range Resources wants to use for drilling in nearby townships. Mt. Pleasant was one of seven infamous anti-drilling townships that sued the state (and eventually won) to overturn the Act 13 law, a law that provided for expert, even-handed and uniform zoning practices throughout the state with regard to oil and gas drilling (see Happy Story Ends Badly Because of 7 PA Towns). What’s left in the wake of overturning Act 13 is petty squabbling by town boards ill-equipped to handle complex oil and gas oversight–i.e., Mt. Pleasant.

We’ve chronicled the long history of Range’s ongoing disagreement with Mt. Pleasant over water impoundments (see previous MDN stories on Range & Mt. Pleasant). The latest Mt. Pleasant town board shenanigan is to impose yet another delay:
Read More “Mt Pleasant Twp Shenanigans re Range Request for Water Ponds”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Attorney General Actively Works Against 70K NY Landowners
February 27, 2014February 27, 2014

As hard as it is to believe, New York’s Attorney General continues to work against his own constituents. We’ve known since his election that Democrat Eric Schneiderman is anti-drilling–what we didn’t know was was how much of an activist he would be, using his office to further his own distorted views on oil and gas drilling. He’s misused the power of the subpoena to go after drillers (see NY Attorney General Schneiderman Subpoenas Shale Drillers). He’s abused the power of his office to investigate town board members in towns that voted to “wait and see” (i.e. not ban) shale drilling (see NY Attorney General Investigates Towns Who Won’t Ban Fracking).

Now, unbelievably, he has asked the court (and succeeded) in delaying a lawsuit brought by 70,000 New York residents–the people he’s sworn to protect–against Gov. Andrew Cuomo. It seems that Cuomo is the only person in the state Schneiderman wants to protect. He’s Andy’s personal junk yard guard dog–on a not-so-short leash. The Joint Landowners Coalition of New York (JLCNY) recently sued Cuomo with an Article 78 lawsuit, in essence asking the court to force Cuomo to do the job he won’t do and release new oil and gas drilling regulations (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah). Schneiderman has gotten the court to delay any action on the lawsuit from March 7 to April 4, to give Schneiderman and his lieutenants, what, more time after 5 1/2 years?…
Read More “NY Attorney General Actively Works Against 70K NY Landowners”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Taxation

Happy Story Ends Badly Because of 7 PA Towns
February 27, 2014February 27, 2014

Who doesn’t like a county (or state) park, or a newer trend–converting old railroad beds into “rail trails”–resurfacing them for walkers, joggers, bikers and roller skaters? We sure love and use them. This story begins happily, with York County spending $100,000 to improve the Old Northern Central Railroad tracks and a portion of the York County Heritage Rail Trail that runs alongside them. Where did the money come from–taxpayers? Nope. It came from the Marcellus Shale industry, from the impact fee levied as part of the Act 13 law. In fact York County has received, so far, nearly 3/4 of a million dollars from that fund–even though there’s no active shale drilling in the county–thanks to Act 13.

But the story ends badly, because quite likely starting next year, all of that impact fee money will disappear (see PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt). There will be no more impact fee money because seven townships in PA got their knickers in a twist, insisting their own layman zoning regulations were better than a set of statewide, uniform regulations designed by geologists and experts. So the seven petulant towns sued to toss out large portions of the Act 13 law, and it now looks like the impact fee will be tossed out too….
Read More “Happy Story Ends Badly Because of 7 PA Towns”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!
February 25, 2014February 25, 2014

It’s been a loooong road in Maryland, evaluating whether or not they should, and if so how, to move forward with hydraulic fracturing of shale in two counties in the state. Failed Gov. Martin O’Malley appointed a commission nearly three years ago to study it. A couple of studies have been created with two more still to go–due by August 1st of this year. The two remaining studies are nebulous “heath effects” (sound familiar?) and economic impacts from drilling. MDN has always joked that Maryland was the only state more dysfunctional than New York when it comes to shale drilling. We were wrong–New York is at the bottom of the heap. We think Maryland could actually beat us to the drill bit. Maybe.

However, we noticed an op-ed written by three members of the Maryland Safe-Drilling Advisory Commission, all three anti-drilling, that argues Maryland should be *more* like New York and delay. They say, in essence, “Ain’t no way those two studies can done in time.” So the answer? Delay. Hey, the delay strategy has worked in spades for NY–why not try it in MD? Here’s the op-ed (and what you get when you appoint anti-drillers to a drilling commission)…
Read More “3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt
February 24, 2014February 24, 2014

The Pennsylvania Supreme Court continues their lunacy. On Friday they obstinately said they would not revisit their decision on the Act 13 Marcellus drilling law passed in early 2012 (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). PA Gov. Tom Corbett asked them to reconsider but the haughty response is a big “no way.” And so the very real possibility that the Supreme Court has just shut off the spigot to $200 million+ per year in impact fees. The Supremes vacated large sections of the Act 13 law that involve the collection and distribution of the Act 13 impact fee, a fee that has benefited countless communities around the state–particularly those where drilling’s impact is felt the most (hence the name). Now? Screw you seems to be the attitude of the justices.

And so we hope the seven “brave” townships that sued and kept suing are happy that they’ve just hosed the entire state with their actions–spoiling it for everyone. Congratulations…
Read More “PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees
February 24, 2014February 24, 2014

PA’s Secretary of the Dept. of Environmental Protection, Chris Abruzzo, told lawmakers last week that he plans to hire “several dozen” new staffers in the oil and gas regulation area of the DEP by using new money from a bump up in well permitting fees. Abruzzo said the current 83 inspectors in the field are enough to get the job done, but what they do need is extra help back in the office–support staff.

MDN told you last September that well permit fees are set to go up 56%–from $3,200 per horizontal well to $5,000 (see Coming Soon: PA Drillers to Pay 56% More for Marcellus Permits). The new fee was approved by the DEP’s Environmental Quality Board but needs several more approvals before going into effect (expected soon). Once it does, the help wanted ads will begin to run…
Read More “New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees”