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NE PA Audience Hears How to Plug in to the Marcellus Supply Chain

The Marcellus means jobs and an economic boom for northeast Pennsylvania. That was the message delivered yesterday in Wilkes-Barre at a Marcellus forum hosted by State Sen. John Yudichak and State Sen. John Blake (both from the Scranton/W-B area). The forum was attended by over 100 people–local contractors, trade unions, small manufacturers and others. MDN friend John Augustine from the Marcellus Shale Coalition was one of the featured speakers, with lots of good tips for those who want to plug in to the Marcellus supply chain.

The Wilkes-Barre Times Leader was on hand and filed this helpful report:
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Cabot’s Big CNG Celebration at Johnson College in Scranton, PA

Yesterday Cabot Oil & Gas held a “CNG Celebration” at Johnson College in Scranton, PA. Unfortunately MDN could not be on hand to help celebrate. However, we do have a couple of stories to bring you from that event.

The purpose of the event was several-fold: announce Johnson College’s curriculum expansion with new courses in compressed natural gas (CNG) technology and eventually a certification (with financial and technical assistance from Cabot); PA DEP Sec. Chris Abruzzo was on hand to announce $3 million in grants to businesses and organizations to purchase or retrofit vehicles to run CNG (see our companion story today); welcome the Marcellus Shale Coalition’s new executive director, David Spigelmyer; and show off some impressive big trucks and other vehicles running CNG. “Celebration” is an appropriate word that about covers it!…
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Williams Takes Next Step with Transco Leidy Pipeline Expansion

Williams is hard at work on expanding their Transco Leidy interstate natural gas pipeline–especially in northeast PA around the Scranton area. The “Transco Leidy Southeast Expansion Project” is a massive $610 million project designed to increase the pipeline’s capacity by 525,000 decatherms per day–enough natural gas to serve 2 million homes. The expansion will pipe Marcellus Shale gas to points from New York City to the southeastern U.S. The project includes construction of approximately 30 miles of additional pipe segments, called loops, in PA and NJ, in addition to modifying some existing compressor stations and valve sites.

The Transco Leidy Southeast Expansion is a multi-year project that Williams hopes will be in service by the end of 2015. They recently took the next step in the project with an official filing with the Federal Energy Regulatory Commission (FERC). An update on the project’s status and what will happen next…
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Williams Goes Back to (PR) School Over Controlled Release Panic

Williams scared the bejeebers out of teachers and students at the Dallas School District (near Scranton/Wilkes-Barre, PA) last Thursday when they did a controlled release of natural gas from their nearby Transco interstate natural gas pipeline. Williams was emptying part of the pipeline to work on it and the controlled release caused a panic and calls to 911 with concerns over a gas leak. Williams admits they could of/should of done a better job in communicating with residents in the community, and that they should of waited until after (or before) school hours to do the controlled release. Of course local anti-drillers seized on the “incident” to make some PR hay.

So, did Williams learn their lesson?…
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Cabot to Teach Hazelton, PA 9th Graders How to Frack

Ninth-grade students at a new magnet school opening this fall in the Hazelton, PA area will be taught a series of lessons on the technology, economics and environmental issues related to fracking and shale gas drilling. The plan calls for the school’s teachers to lead four lessons in the series, an “environmentalist” (i.e. anti-driller) will teach one lesson, and someone from Cabot Oil & Gas, the northeast PA driller funding the program, will teach two of the lessons. There’s sure to be stiff opposition to Cabot’s involvement from the anti-drillers. “Fair” to them would be Cabot pays for the whole thing but anti-drillers are the only voices heard in the classroom. Not this time!

MDN finds it amusing the program will feature a mock town hall meeting complete with squabbling neighbors and people falsely claiming their water wells have been contaminated. We need to learn ’em young, ya know…
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Drilling Supply Chain Businesses “Popping Up” in OH & PA

More tales of how Utica/Marcellus drilling leads to new businesses moving in to an area (or starting up), which leads to new jobs, new sources of tax revenue and an overall economic boost.

These two latest reports come from (1) St. Clairsville, in Belmont County, OH (close to Wheeling, WV), and (2) northeast PA (near Scranton). Businesses related to the drilling supply chain–from clothing supply stores to construction companies to railroad transloading facilities–are “popping up” all over the Utica and Marcellus. Perhaps their stories will inspire you and your business to get involved with the drilling supply chain…
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FERC Hearing Near Wilkes-Barre for Transco Pipeline Expansion

The Federal Energy Regulatory Commission (FERC), the agency tasked with approving new interstate pipeline construction, will conduct a public hearing near Wilkes-Barre, PA on Wednesday, June 12 to consider an application by Williams to expand the Transco natural gas pipeline in the area. The proposed expansion in Luzerne County, PA (and in several other locations) will allow Williams to use more Marcellus Shale gas to service an addition 2 million homes along the pipeline’s route…
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Scranton Newspaper Plays Both Sides of Fracking – For Profit?

Last week MDN told you about a non-story story written by the Scranton Times-Tribune which was immediately picked up and amplified by the AP (see AP’s Non-Story About PA Water Wells “Contaminated” by Drilling). The story tries (and fails) to say Marcellus drilling is causing a huge number of instances of methane contamination of water supplies in PA. We debunked it of course. But now we may know the real reason for that story. The owner of the Times-Tribune recently purchased an environmental services company that supposedly investigates and fixes such water-related issues. What a racket: Scare the *#$! out of people, then sell them a fix for their fears.

We get the story about this slimy setup by the Times-Tribune from a Wayne County landowner writing on the Natural Gas Now blog site:
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Air Products in Wilkes-Barre, PA – A Shale Gas Success Story

Air Products is located on the outskirts of Wilkes-Barre, PA. If you’ve ever heard of the Air Products business, you may conjure up an image of small cylinder tanks of helium or other "rare" gases sitting inside a chain fence. Yes, Air Products sells gases by the tank, but they also manufacture the mother of all gas tanks, and that’s where the shale gas business comes in…

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Luddites of Luzerne: UGI Scraps Plan for PA Compressor Station

The forces of anti-drilling and anti-progress have won in Luzerne County, PA. UGI Energy has scrapped plans to build a new pipeline compressor station in Luzerne after facing stiff opposition from citizens and the county zoning board. The zoning board refused to permit the new compressor station last year and UGI was in the process of appealing it with a local court (see UGI Plans Start of PA Marcellus Pipeline Despite Zoning Appeal). Apparently UGI has lost its appetite to fight the Luddites of Luzerne County (maybe there’s a new HBO series in there somewhere?):

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UGI Plans Start of PA Marcellus Pipeline Despite Zoning Appeal

Pennsylvania energy utility UGI is working hard to bring low-cost, locally produced Marcellus Shale gas to its customers in the Wilkes-Barre/Scranton area. Currently UGI gets natural gas for its northeast PA customers from the Gulf of Mexico, which is crazy given the abundant, local Marcellus natural gas supplies all around them. But the Luzerne County zoning board last September denied UGI the right to build a much-needed compressor station that would help bring local gas to local customers (see Luzerne County Denies UGI Permit to Build Compressor Station).

UGI appealed that decision in court, and in the meantime, they’re moving forward with building a 28-mile pipeline anyway—an extension of the Auburn Pipeline from Wyoming County to Luzerne County (see the map below for the route of the new pipeline). If UGI’s appeal for the compressor station for the new pipeline fails, they do have a backup plan…

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Updated Study: Marcellus Drilling Economic Benefits in NE PA

Several colleges in northeast Pennsylvania including Keystone College, King’s College, Luzerne County Community College, Misericordia University, Penn State Wilkes-Barre, University of Scranton and Wilkes University belong to, support and form an organization called the Institute for Public Policy and Economic Development. In 2008 the Institute published a study comparing economic and demographic changes of three shale plays in three specific areas of three shale plays: the Barnett, the Fayettville and the Marcellus.

The purpose of the original study was to show what may lie ahead in northeast PA should it follow a similar track to the then far more mature shale plays in the South and Southwest. The Institute has just released an update to the original study in a new report titled “A Review of Changes in Selected Economic & Demographic Indicators in Particular Counties in the Barnett, Fayetteville and Marcellus Shale Play” (embedded below). Wow, what a difference four years makes! The Marcellus in many ways has eclipsed the Barnett and Fayettville and continues to grow. But has that growth translated into good things in northeast PA? That’s the question asked and answered in this latest update by the Institute.

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New PVR Marcellus Pipeline Comes Online in Northeast PA

The newest Marcellus Shale pipeline became operational today. PVR Partners made an announcement that their Wyoming Pipeline, a 30-mile pipeline running from northern Wyoming County, PA south to Luzerne County where it connects to the Transco interstate pipeline, is now operational. The new pipeline has a 750 million cubic feet per day capacity (MMcfd), of which 255 MMcfd (so far) has been spoken for by producers.

From the announcement:

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Luzerne County Denies UGI Permit to Build Compressor Station

Sadly, the Luzerne County, PA zoning hearing board has voted to deny UGI Energy Services a permit to build a much-needed compressor station in West Wyoming. The station would help bring low-cost shale gas to local customers. Apparently local customers in Luzerne County prefer paying higher costs for their natural gas.

Here’s what happened last night:

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