Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA
PA PUC Fines Revolution Pipe Another $1M on Top of $30M
Energy Transfer’s (ET) Revolution Pipeline in southwestern Pennsylvania is the financial gift that keeps on giving–for the state of Pennsylvania. Revolution Pipeline runs through Bulter, Beaver, Allegheny, and Washington counties. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed). ET has just agreed to pay *another* $1 million fine–on top of previous fines totaling over $30 million–because of the explosion.
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Big Green insanity continues at the so-called Pennsylvania Environmental Defense Foundation (PEDF). The only thing they “defend” is their own twisted philosophy of trying to gouge out the eyes of the oil and gas industry in PA–even at the expense of de-funding their own beloved PA Dept. of Conservation and Natural Resources (DCNR). The PEDF has convinced the liberal Democrats on the PA Supreme Court (again) to block using revenues from oil and gas drilling on state land to fund the DCNR’s own budget! Truly insane.
Because of recent sinkholes developing near the construction of the Mariner East 2X pipeline, Chester County, PA officials have sent a letter to the Pennsylvania Public Utility Commission (PUC) asking the agency to immediately shut down flows along the existing Mariner East 1 pipeline. All of the ME pipelines flow NGLs, mainly ethane (sometimes propane and butane). Officials say seven sinkholes have developed near ME construction *just this year* and they are concerned more sinkholes will develop and potentially crack or break an existing pipeline. One recent sinkhole swallowed a small tree (caught on video, below).
New permit activity once again picked up last week after the previous week showed a paltry number of permits. In Pennsylvania 10 new permits were issued, all but one of them in the northeastern dry gas area of the state. In Ohio 4 new permits were issued, all of them for the same driller on the same well pad. And in West Virginia, 7 new permits were issued. One of the permits appears to be issued to a private landowner drilling his own shale well! And in another oddity, four WV permits were issued to a midstream company.
A new study prepared for Shell Chemical Appalachia earlier this year is just coming to light now. The study, researched by professors at Robert Morris University (RMU), calculates the impact on the Pennsylvania economy from the soon-to-be-completed Shell ethane cracker plant in Beaver County, PA. The numbers are staggering. Each and every year that cracker operates RMU projects the cracker will create $3.7 billion throughout the PA economy. Amazing! And it’s ALL private money–no government transfers from one taxpayer to another. Joe Biden should be jumping up and down and extolling this from the rooftops! Instead, he’s attacking fossil fuels.
In a brilliant move aimed at boxing in the Delaware River Basin Commission (DRBC), two northeastern Pennsylvania State Senators–Gene Yaw and Lisa Baker–along with members of the PA Senate Republican Caucus (27 Senators in all), filed a lawsuit in January against the DRBC accusing the quasi-governmental agency of “taking” the property rights of PA residents without just compensation under the law (see 
Pennsylvania Gov. Tom Wolf pulled a fast one. He pressured the PA Environmental Quality Board (EQB), a powerful committee operating under the larger umbrella of the PA Dept. of Environmental Protection (DEP), to hold a hearing and cast a vote yesterday (in the dead of summer with everyone out of town) on whether or not PA should join the Regional Greenhouse Gas Initiative (RGGI), an obscene tax on carbon for power generators including natgas power plants. The EQB, packed with people who depend on Wolf for their jobs (he’s their boss), voted in favor of advancing the $2.6 billion RGGI carbon tax proposal by 15-4. No surprise there. It was an inside job.
This is so tiresome. The Chester County District Attorney’s office continues to persecute two lowly Pennsylvania Constables for doing their job in warning off crazy anti-fossil fuel fanatics who approached a construction site for the Mariner East 2 pipeline project. The DA’s office thought it could fool everyone with a catchy slogan, calling what the constables did a “buy a badge scheme.” What it was, was two guys working for near minimum wage who happen to have a badge, using that badge to keep people from hurting themselves. And for that, they’re being prosecuted by the Chester DA. Shameful. The case is being tried before a jury right now.
According to an analysis done by S&P Global Market Intelligence, the five largest drillers in the Pennsylvania Marcellus Shale resumed their drilling in June in a big way. S&P’s analysis shows those five drillers were responsible for 51% of the new drilling permits issued last month, up from 28% of new permits issued in May. Perhaps we know why. The price of natgas at regional hubs in PA rocketed over the past month. At the Leidy Hub in the northeast’s dry gas window (centered on Susquehanna County, PA), cash prices went from a low of 93.7 cents/MMBtu on May 3 to $3.07/MMBtu at the end of June.
Charlie Melançon is a former U.S. Congressman from Louisiana who played an integral role in rebuilding Louisiana’s infrastructure following the devastation caused by Hurricanes Katrina and Rita. Melançon served on the House Committee on Energy and Commerce, which oversaw energy policy and environmental quality among other issues. He sees a lot of parallels between his home state of Louisiana and Pennsylvania. Melançon has written an editorial appearing in a major PA newspaper hoping to inform and encourage Pennsylvanians to wake up to the fact that pipelines are the key to PA becoming the energy hub of the northeast. Conversely, without (more) pipelines, PA will not realize its potential. Pipelines are the key. Melançon is uniquely qualified to know.
