Lycoming County

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    Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap

    We have long admired Pennsylvania State Rep. Garth Everett, Republican from Muncy (Lycoming County), PA. Everett has been in the forefront of trying to get “minimum royalty” legislation passed that would guarantee PA landowners would get minimum royalty payments of 12.5%–regardless of any kind of post-production expenses. He’s been introducing a bill to do just that for the past three sessions (six years), the most recent attempt this year in February (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Although Everett’s stance on the minimum royalty bill has him at odds with the drilling industry, he has always struck us as pro-gas and a friend to the industry. So we were particularly saddened to read Everett is now voicing support for a Marcellus-killing severance tax. Perhaps Everett has been influenced by fellow Lycoming County politico State Sen. Gene Yaw, who sold out the industry by supporting a severance tax during the recent budget votes (see Traitorous PA Senate Republicans Pass Severance Tax Bill). MDN note: Sen. Yaw reached out to MDN several times with caustic comments, taking issue with our view of his betrayal of the industry. Or maybe Everett’s newfound love of taxation has happened in response to the industry vigorously opposing his minimum royalty bill for the past six years, i.e. revenge. Whatever the reason, Everett is now saying he supports a severance tax–as long as the tax can’t be deducted from landowner royalties…
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    UGI Buys NatGas Pipeline Gathering System in NE PA

    UGI is a major utility company in Pennsylvania, providing natural gas and electric service to 700,000 Pennsylvania residents across the state. UGI, via its Energy Services subsidiary, operates natural gas storage facilities, compressor stations, LNG plants and local pipeline gathering systems. UGI operates several gathering systems in northeastern PA. Yesterday the company announced is has purchased an existing gathering system from Rockdale Marcellus for an undisclosed sum. The Rockdale gathering system consists of 60 miles of gathering lines–along with dehydration and compression facilities–located in Tioga, Lycoming and Bradford counties in northeast PA. The system was purchased, on paper, by UGI subsidiary Texas Creek, so the gathering system has been rebranded UGI Texas Creek. MDN has a map of the new system below…
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    PA AG Criminal Lawsuit Against XTO Energy Dismissed After 4 Yrs

    Four years after then-Pennsylvania Attorney General Kathleen Kane decided to turn an accident into a criminal prosecution against XTO Energy, the final chapter has been written. Anti-drilling Kane attempted to criminalize the accidental spill of a small amount of recycled wastewater by XTO that happened years before she took office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). There was an accidental spill of ~50,000 gallons of frack wastewater at an XTO drill site in 2010 in Lycoming County, PA. XTO remediated the site, digging up affected soil, and paid out a $100,000 settlement in 2013. By the time Kane took office, the matter had been over and done for over two years. But Kane wanted/needed a quick way to make a splash with her hardcore left fringe supporters (payback time for money and volunteers), so she re-opened the case and fantastically filed criminal charges saying XTO showed a pattern of brazen disregard for safety, blah blah blah. In 2013, XTO filed to dismiss the Kane lawsuit (see XTO Energy Files to Have AG Kane’s Lawsuit Dismissed). The federal EPA also got into the act and last year XTO settled a violation of the Clean Streams Law and Solid Waste Management Act. Pricetag? Another $300,000. Now that the company has paid out the nose ($400,000 total), U.S. Middle District Judge Matthew Brann yesterday approved a motion filed by the U.S. attorney’s office to end the case. Finally. After four years…
    Read More “PA AG Criminal Lawsuit Against XTO Energy Dismissed After 4 Yrs”

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    PA Sen. Gene Yaw Defends Vote for Severance Tax

    PA Sen. Gene Yaw

    As MDN previously reported, in July the Pennsylvania Senate, which is controlled by Republicans, voted to enact a new severance tax on top of the existing impact fee (see Traitorous PA Senate Republicans Pass Severance Tax Bill). We named names in that article of those Republicans we consider to be traitors to the industry by voting for this insanity. One of those Senators is Gene Yaw, from Williamsport. Until now, we had not publicly read of how northeast PA Senators justify their vote for the severance tax. We now have. Sen. Yaw provided a statement to a local newspaper in Sayre with statements to explain his vote. Among his justifications: It was his “constitutional obligation” to vote for it, to “steady a sinking financial ship.” Yaw points out he voted for the original impact fee and that over time, revenue from that fee has trailed off, creating the need for a new revenue source (from the Marcellus industry) to replace it. The severance tax fits the bill for Yaw. Here is how Sen. Yaw justifies his vote…
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    Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well

    Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011. In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Range’s enviro crime? Methane migration from a well in Lycoming County, PA. The DEP says the Range well, drilled in 2011, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled say methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board (see PA DEP’s $8.9M Methane Migration Fine Appealed by Range Resources). In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We assumed that was the end of the matter. But alas, no. We now, finally, have an end. Both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” The paperwork (copy below) does not say what the terms of the settlement are. Both Range and the DEP are being mum about the terms…
    Read More “Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well”

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    PA Court Rules Compressor, Gas Well Not “Single” Emission Source

    A somewhat obscure court case in Pennsylvania has potentially big implications for drillers who also own pipeline subsidiaries. In Lycoming County, PA, Seneca Resources (subsidiary of National Fuel Gas Company) drilled a series of wells on a pad called Well Pad E. Another NFG subsidiary, NFG Midstream, connected gathering lines to Well Pad E. NFG Midstream operates a compressor station to push the gas through the pipeline system. Both the well pad and the pipeline/compressor station are subject to air emissions regulations by the state Dept. of Environmental Protection (DEP). Each subsidiary on its own–the well pad, and the compressor station–don’t produce enough emissions to trip a costly upgrade in technology. However, if you combine both together into a single “source,” the two together do cross the threshold and would cost NFG big bucks in emissions technology to comply. The DEP lumped both together and told NFG to upgrade their emissions technology. Thing is, if another company owned the pipeline system, say Williams, the DEP would not have tried combining the two into a single source. So NGF appealed the DEP decision to the Environmental Hearing Board (EHB), a quasi-court set up to hear appeals of DEP decisions. The EHB found in favor of the DEP, so NFG appealed it again, this time to PA Commonwealth Court. Last week the court overturned the DEP decision and said just because two subsidiaries have the same parent, you can’t just lump them together as a single source for air emissions regulations… Read More “PA Court Rules Compressor, Gas Well Not “Single” Emission Source”

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    PA Enviro Justice Listening Tour Continues to Draw Almost No One

    Last December the Pennsylvania Dept. of Environmental Protection (DEP) said it would go on a “listening tour” in early 2017, to focus on so-called environmental justice (see PA DEP to Conduct ‘Listening Tour’ for ‘Environmental Justice’). The DEP finally set up a schedule for its listening tour, which began in March in Greene County (see PA DEP Conducting “Listening Tour” for “Environmental Justice”). Our take: “environmental justice” means asking poor people if they’ve been abused by the oil and gas industry in any way–and if they have a beef, the DEP will “do” something about it. The first session in the tour was interesting for several reasons. For one, just a handful of people turned out–a maximum of 30 in the crowd. For another, the po’ folk didn’t bother coming. It seems only radical activists bothered to turn up, claiming to represent the abused, repeating the same tired, old lies they always repeat. Another stop along the tour was held last week in Williamsport, PA. The pattern repeats. If anything, there were fewer people in the crowd–about 20 according to the local newspaper. Next to nobody turns up for these things. Why is the DEP wasting its time, and PA taxpayers’ money?…
    Read More “PA Enviro Justice Listening Tour Continues to Draw Almost No One”

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    Voice Support for Atlantic Sunrise @ PA DEP Event Apr 19

    For months MDN has encouraged its readers to get behind and support Williams’ Atlantic Sunrise Pipeline project–a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County. In February the Federal Energy Regulatory Commission (FERC) gave its final seal of approval for the project (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). But such approvals are never the last word in the complex world of building pipelines. In addition to FERC’s approval, Williams still needs permits from the PA Department of Environmental Protection (DEP) and the U.S. Army Corps of Engineers. The DEP moves like a glacier, but finally they are holding their first public hearing on the project. The hearing will deal specifically and only with a compressor station in Lycoming County, PA. The hearing is scheduled for April 19 (next Wednesday) in Jersey Shore, PA. You KNOW the antis will launch an all-out assault at the meeting. It is important for those of us who support Atlantic Sunrise to also attend and offer words of support for the compressor station, and the project. Williams has a special form (click here) where you can register your intent to attend…
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    Gorsline Zoning Case Argued Before PA Supreme Court Justices

    Not long after the Pennsylvania legislature passed the Act 13 Marcellus Shale drilling law in 2012, signed into law by then-Gov. Tom Corbett, seven selfish towns sued, claiming they should have the right (via zoning laws) to determine just where an oil and gas well can be located within their borders. The challenge was brought by rabid anti-drillers and appealed all the way to the PA Supreme Court, where unfortunately the antis won (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). What the antis didn’t think about was the fact some towns may decide to exercise their newly-won rights–to allow wells, instead of prohibit them. Whoops. Guess they didn’t see that one coming. A town in Lycoming County decided to allow a shale well on property zoned residential/agricultural (i.e. farming country). Anti-drilling Big Green groups, including PennFuture, THE (arrogant) Delaware Riverkeeper, and the Peters Township gang (none of which are from mid-PA where the town is located) sued to deny the town the right to exercise its Act 13 authority to allow a shale well. A sham county judge granted a victory to the antis. But it was temporary. On appeal, the higher PA Commonwealth Court obliterated the faulty reasoning of the lower court and, significantly, redefined how courts should interpret the results of the Act 13 zoning lawsuit that allows local municipalities the right to restrict, or allow, shale drilling (see Major Victory for PA Landowners/Drillers in Lycoming County Case). The case, Brian Gorsline v. Board of Supervisors of Fairfield Township (Gorsline is an avowed anti-driller), was appealed to the PA Supreme Court and yesterday in Philadelphia the Supremes heard oral arguments. Can we determine anything from the tone of the questions?…
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    Anadarko Settles Criminal Case, Pays $53K for Killing Salamanders

    When was the last time you heard of someone indicted on criminal charges and instead of doing time in jail, they just paid money? While some crimes involve fines, they always involve jail, or probation, or some form confinement/punishment other than just paying money. At least that’s what we always thought. But if you’re part of the Gestapo, otherwise known as the Environmental Crimes Unit of the Pennsylvania Attorney General’s Office, apparently the rules don’t apply. People in the AG’s office can accuse you of a crime, then shake you down for money, and give that money away to anyone they want. That’s what just happened with Anadarko. As we recently reported (see Anadarko Indicted for Killing 165 Salamanders in Lycoming County), in February 2015 a storage tank at an Anadarko well pad leaked. Approximately 1,000 gallons of produced water leaked out of the tank and into a drainage ditch (i.e. “unnamed tributary”), ending up in a local creek where it killed 169 (or 165, depending on the source) salamanders. It was an accident. However, the Environmental Crimes Unit of the PA Attorney General’s office hauled Anadarko and their contractor into court, charging them with environmental crimes. In order to make it all go away quickly, Anadarko and the contractor settled, paying $53,078. The kicker is this: the bulk of the fine money doesn’t even go to the state of PA. Instead, $40,000 of the fine money goes to a private non-profit organization–the Northcentral Pennsylvania Conservancy. Nothing against the Conservancy and good work they do, but this is wrong…
    Read More “Anadarko Settles Criminal Case, Pays $53K for Killing Salamanders”

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    Positive Signs that Shale Drilling is Coming Back in Central PA

    As MDN has noted over the past several months, the signs have been positive that Marcellus/Utica drilling is picking up once again. But that doesn’t mean it’s picking up in every location. Or does it? One of the hotbeds of drilling activity “back in the day” was in several northeastern/central Pennsylvania counties, including Tioga, Bradford, Lycoming and Sullivan. But then the bottom fell out of the industry (with super low prices) and drilling all but dried up in those counties. The good news is that there are signs of life, once again, in the central counties of PA. Between Nov. 1 and Mar. 6, 30 drilling permits were issued in Tioga County, 12 permits in Lycoming County, and (somewhat surprising), 8 permits issued in Sullivan County. Shale is coming back!…
    Read More “Positive Signs that Shale Drilling is Coming Back in Central PA”

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    Anadarko Indicted for Killing 165 Salamanders in Lycoming County

    BREAKING NEWS, BREAKING NEWS: Anadarko well pad site leaks wastewater and kills 165 salamanders. Funeral services are being arranged. This would almost be funny, if it wasn’t real. No, not funeral services for salamanders (although it’s not beyond believable in this day and age). In 2014 Anadarko drilled a shale well in Lycoming County, PA. In February 2015, a storage tank at the well pad–used to temporarily store produced water coming from the well (wastewater storage happens at ALL shale well sites)–either experienced a leaky valve, or was overfilled, depending on whom you ask. About 1,000 gallons of produced water leaked out of the tank and subsequently out of containment and into a drainage ditch (i.e. “unnamed tributary”) and found its way into a local creek, killing 165 (or 169, depending on the source) salamanders. And now (no lie), the Environmental Crimes Unit of the PA Attorney General’s office is hauling Anadarko and their contractor into court, charging them with environmental crimes. A PA Fish and Boat Commission biologist estimates the dead salamanders were worth $6,156–or ~$37 each. Careful where you step! If you step on a salamander in PA and accidentally kill it, the state will charge you $37 and somebody from the AG’s office will pay you a visit. It can get expensive walking along a creek in PA….
    Read More “Anadarko Indicted for Killing 165 Salamanders in Lycoming County”

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    PA Case Highlights Risk in Using Non-Lawyer to Negotiate Lease

    In August 2013 an extensive investigative article about a then-director for the Pennsylvania Game Commission, William A. Capouillez, appeared in the Philadelphia Inquirer (see PA Director of Game Commission Double-Dipping with Gas Leases?). The article spotlighted a potential conflict of interest between Capouillez’s day job and his moonlighting side job as an agent for property owners who lease their land for oil and gas development. The issue? He was signing private deals with the same companies that often work with his state agency. The State Ethics Commission did a lengthy investigation and three years later, the Commission levied a $75,000 fine, which Capouillez agreed to pay (see Former PA Game Commissioner Fined $75K for Lease Moonlighting). Although he paid the fine, Capouillez remained defiant and said the fine is a tiny fraction of the original fine sought–an indication of his vindication. There is new litigation involving Capouillez. One of the leases he negotiated was on behalf of the Laurel Hill Game and Forestry Club with Range Resources. The way Capouillez constructed his leases was that he would get a cut, a percentage, of any lease signing bonus and ongoing royalty payments, in return for the leases he brokered. Range never drilled on Laurel Hill’s property, but they did start to push dirt around a few hours before the lease expired as a way of holding the acreage (some would call their action a less-than-honorable practice). Laurel Hill sued Range and the lawsuit was later settled by drafting up a new lease with new terms. The new lease/terms were not brokered by Capouillez and he was cut out of the deal–so Capouillez sued both Laurel Hill and Range. The moral of the story, according to lawyers writing about the case, is to never use non-lawyers to represent you in lease negotiations…
    Read More “PA Case Highlights Risk in Using Non-Lawyer to Negotiate Lease”

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    Northeastern PA Counties Explore Alliance to Pass Royalty Reform

    One of the issues that isn’t going away is the demand by landowners in some Pennsylvania counties, like Bradford, for lawmakers in the state to pass a bill that guarantees them what they believe they are already guaranteed–a 12.5% minimum royalty, based on a 1979 law that states they should get such a royalty. We’ve extensively covered what we call a civil war between two parties who are otherwise friendly toward each other–landowners and shale drillers. Last year the issue came to a head with House Bill (HB) 1391 (see our list of stories here). In a nutshell, landowners say Chesapeake Energy and some other drillers are taking post-production deductions out of landowners’ royalty checks, resulting in royalty payments far below 12.5%. In some cases landowners are receiving bills for money owed to the driller–after the driller pulled the gas out of the ground! Who in their right minds leases land for drilling so they can PAY the driller! It is an outrage and landowners want it stopped. Drillers, on the other hand, say you can’t just change contracts after they’ve been signed, punishing the entire industry for the bad actions of a few. Drillers say the proper response is for landowners to sue the bad apples. Frankly, it’s all a mess. The new news is that landowners from Bradford and several other northeastern PA counties, tired of being outmaneuvered by drillers, are actively talking about forming an alliance to try and garner enough support in Harrisburg to get a bill like HB 1391 passed this year…
    Read More “Northeastern PA Counties Explore Alliance to Pass Royalty Reform”

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    Look Ma, No Pipeline! Lycoming County Co. Begins CNG Shipments

    In June 2015 MDN told you about a really cool plan by a Pennsylvania company to establish a CNG (compressed natural gas) terminal in Lycoming County, PA as a way to get natural gas to manufacturers, fleets and businesses where no pipeline infrastructure now exists (see Getting Marcellus NatGas to Customers without Pipelines). Compass Natural Gas Partners, based in Camp Hill, PA, said they would build a first-of-its-kind CNG terminal in Lycoming County that will accept Marcellus Shale gas in, clean it up (get rid of the water in it), compress it to 3600 psi, and load it into specially designed trailers that haul it to customers. And then the project went quiet for the next year and a half. Except it wasn’t really quiet. Compass, with a tag line on their website that says “All We Need is Road,” built the terminal and it went fully operational in December. Trucks are now servicing customers in Cambria and Mifflin counties…
    Read More “Look Ma, No Pipeline! Lycoming County Co. Begins CNG Shipments”

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    Anadarko Sells All Marcellus Assets for $1.24B to Alta Resources

    One of the country’s largest oil drillers is calling it quits in the Marcellus natural gas play. Earlier today Anadarko announced it has cut a deal to sell all of its Marcellus acreage and wells to Alta Resources for $1.24 billion. The deal is big, including 195,000 acres and daily production from wells that averages 470 million cubic feet per day (MMcf/d). That’s the news you’ll get everywhere else. Here’s the part of the story you’ll read exclusively here on MDN: Anadarko has a partner in the Marcellus–Mitsui–which is also selling their interest in the PA Marcellus to Alta, for $207 million. Also, background on the deal you won’t read anywhere else: Alta was an early investor in the Marcellus, but sold out all of their acreage in 2010. Now they’re back. Anadarko and Mitsui sold for far less than the acreage was valued at in 2010–we’d call it getting taken to the cleaners. MDN sorts it all out below…
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