PA PUC Pushes Forward with Onerous New Regs for Liquids Pipelines
Some three years ago the Pennsylvania Public Utility Commission (PUC) began the process of formulating new regulations that will apply to intrastate pipelines transporting gasoline, petroleum, crude oil, and natural gas liquids like ethane. In July 2021, the PUC finally published a draft of proposed new regs (see PA PUC Proposes New Regs for Pipelines – Landmen Must be Licensed). After initial feedback, the PUC officially published their draft regs in February 2022, called a Notice of Proposed Rulemaking Order (or a NOPR). On April 12, last week, the PA Dept. of Environmental Protection (DEP) along with affected groups like the American Petroleum Institute (API) filed comments on the PUC’s new regulations.
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GAI Consultants, headquartered in Pittsburgh, is a planning, engineering & environmental consulting firm serving clients in the energy, transportation, development, government, and industrial markets. GAI has been in business since 1958 and has served the oil and gas industry since the early 1980s. The shale industry was a big boom for GAI’s business. Shale is helping GAI to grow again–exponentially. GAI announced last Friday the company has expanded further into the oil and gas industry with the acquisition of PGH Petroleum & Environmental Engineers LLC, headquartered in Austin, Texas.
Last Tuesday, Pennsylvania’s Commonwealth Court ruled that Gov. Tom Wolf’s obscene carbon tax, called the Regional Greenhouse Gas Initiative (RGGI), will not go into effect until “pending further order of the court” (see 
Pennsylvania, Ohio, and West Virginia are all scrambling to form intrastate working groups or other alliances in an attempt to be THE state chosen for one of four regional hydrogen hubs funded by the recently passed so-called Biden infrastructure bill (see 
On Tuesday, Pennsylvania’s Commonwealth Court ruled that Gov. Tom Wolf’s obscene carbon tax, called the Regional Greenhouse Gas Initiative (RGGI), will not go into effect until “pending further order of the court.” What further action from the court is necessary was not disclosed. What is obvious is that Wolf’s attempt to force the state to join RGGI is now on a very long pause, until more court cases are filed. The end game (for Republicans) is to run out the clock until a new governor is elected in November (hopefully a Republican). Either that, or convince the 5-2 liberal majority of the PA Supreme Court (which is likely where this will end up) to rule against Wolf’s unilateral attempt to force the state into the RGGI compact.
In January MDN reported comments by a Shell representative who said the mighty ethane cracker the company is building in Monaca (Beaver County), PA was 95% complete (see 
Analysis by S&P Market Intelligence notes that new shale drilling permits issued in Pennsylvania dipped in February 2022 when compared to February 2021 (and dipped compared with January of 2022). Fair enough. The question is, Why did permits dip in February? The article alludes to a possible reason–a dip in the Henry Hub NYMEX price in February, going below $5/MMBtu. While price may have played a role, we believe there’s another contributing factor to the permit dip in February.
We spotted two different articles published over the past couple of days about the recently nixed Marcellus LNG export plant that was planned for Wyalusing (Bradford County), PA (see 
There’s a lot of finger-pointing going on about why a project to build a tiny $60 million LNG plant in South Philadelphia has come off the rails (i.e. dead). The developer for the project, Liberty Energy Trust, says Philadelphia Gas Works (PGW), the owner of the site, dithered around and took too much time to settle on a plan and now the “opportunity has passed” to build the project. Liberty has moved on to bigger and better things. PGW says developer Liberty Energy Trust tried to make “unacceptable changes” to the terms of the deal to develop the site and blames the company for not sealing the deal. Neither side has declared the project 100% dead, but it sure looks that way to us.