Slight Delay in PA Adopting Obscenely High New Shale Permit Fees
MDN previously told you that Pennsylvania would finally adopt insanely new high permit fees for Marcellus Shale drilling when the state Independent Regulatory Review Commission (IRRC) meets on June 3 (see Massive Hike in PA Shale Permit Fees Coming at June 3 Meeting). That meeting has been delayed again, for the fourth time.
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Last year a sewage treatment facility in Belle Vernon (Fayette County, PA) claimed the effluent (runoff) it was receiving from a nearby landfill in Westmoreland County contained high levels of salt and radioactivity and was causing damage to their treatment system (see 
Last time we wrote about a zoning ordinance in Murrysville Township (Westmoreland County) was three years ago, in May 2017, when the town and local drillers struck a compromise on the distance of setbacks (see
This has to be a first in the modern shale era. There are now more active fracking crews working in the Marcellus Shale than in any other shale play, including the oily Permian. There are 450 fracking fleets available in the U.S., but only 70 of them are active right now. The Marcellus is using 31% of those active fleets, while the Permian is using 30%. We never thought we’d live to see the day!
It had to happen sooner or later. Pennsylvania’s Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for January through March 2020 (full copy below). It shows natgas production in PA rose 6.8% compared to the same period last year. However, overall production fell compared to 4Q19’s record high, breaking a streak that went back 3.5 years.
On October 3, 2016, landowner James Slamon filed a lawsuit against Carrizo and Reliance Industries in the Susquehanna County (PA) Court of Common Pleas. Slamon alleged Carrizo and Reliance underpaid royalties on oil and gas leases to him and a class of other landowners “exceeding one hundred members.” The drillers got the case moved to federal court on October 31, 2016. Fast forward to this past Monday and a judge in the federal court case has certified (in part) the class-action request. The lawsuit will now move forward.
Big time opposition continues to Pennsylvania Gov. Tom Wolf’s plan to force the state to participate in the so-called Regional Greenhouse Gas Initiative (RGGI), a tax on carbon aimed at coal and natural gas-fired electric power plants, with an eye to driving them out of business (
In Ohio, it costs drillers $5,500 to file for and receive a permit to drill a new shale well. In West Virginia, the cost is $10,150. In Pennsylvania, it currently costs drillers $5,000 for a new shale well permit. Following an upcoming meeting by the state Independent Regulatory Review Commission on June 3, PA’s permit fee will zoom to the top of the M-U list: $12,500 (2 1/2 times the previous fee).
Last week MDN brought you the news of another Pennsylvania Pipeline Investment Program (PIPE) grant being issued–this one in Luzerne County, near Wilkes-Barre (see
The crash in the drilling rig count continued last week for the ninth straight week, although the decline slowed for a third week in a row. U.S. oil and gas rigs for land-based operations fell another 29 last week, to a total of 369 active rigs. Most of the decrease comes from oil-focused rigs. However, we’ve noticed a disturbing trend in the Marcellus rig count.
Shell continues to ramp back up work being done at its mighty ethane cracker construction site in Beaver County, PA following a shutdown of activity due to the coronavirus pandemic. The company has announced plans to add 300 employees back each week until they are back up to full compliment.
We have some exclusive news to share about a northeast PA LNG plant project. In August 2018, New Fortress Energy announced plans to build at least one LNG liquefying plant in Wyalusing, PA (see