Pennsylvania

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    PA Court Upholds $1.1M Fine on EQT re Wastewater Impoundment

    Yesterday Pennsylvania’s Commonwealth Court upheld a PA Dept. of Environmental Protection (DEP) fine levied on EQT for $1.1 million related to a leaky wastewater impoundment in 2012. The case dates back to 2014 when the PA Dept. of Environmental Protection (DEP) slapped EQT with a $4.53 million fine for a leaky wastewater impoundment in Tioga County, something that happened two years earlier (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). EQT never said there wasn’t a problem with leaks at the site, but they did say the way the DEP calculated the fine was unreasonable and arbitrary. EQT appealed the fine and the case all the way to the PA Supreme Court, and in April of this year, the Supremes ruled in favor of EQT, saying that the DEP’s levied fine was excessive and that the DEP misinterpreted language in the 1937 Clean Streams Law (see PA Supreme Court Axes DEP $4.5M Fine in EQT Tioga Wastewater Leak). We thought that was the end of the case. But it wasn’t. The Supremes ruled on “water to water” contamination in the case, but not on “ground to water” contamination. PA law allows for companies to be on the hook for each day a contaminant enters the water table. In May the court heard oral arguments over how to prove whether contaminants in the soil have moved into groundwater (see EQT Continues to Fight PA DEP Fine re Wastewater Impoundment). What lawyers argued was whether or not, and how, the DEP can prove contaminants in the ground, there because of EQT’s leak, can be proven to have leached into the water on any given day. DEP claimed to have a formula and calculated a revised $1.1 million fine based on assumptions about how many days the contaminants leaked out of the ground. Yesterday, Commonwealth Court agreed with DEP and upheld the fine…
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    Lancaster Nuns Appeal Atlantic Sunrise Pipe Case to US Supreme Court

    The Sisters of the Corn (our name for the a group of nuns in Lancaster County, PA) are not giving up their wildly hypocritical lawsuit against Williams for building the Atlantic Sunrise Pipeline across their property. The good sisters are asking the U.S. Supreme Court to hear the case, claiming infringement of religious freedom. The nuns use natural gas to heat an old folks home they operate, yet are trying to block the Atlantic Sunrise Pipeline from traversing that very same property. We don’t know how they justify using natural gas yet actively try to block a pipeline that delivers it. The nuns, with the help of local anti group Lancaster Against Pipelines, stuck a garden trellis and a few wooden park benches in the middle of a corn field owned by the nuns (leased to a local farmer) directly in the path of the pipeline, declaring the site a “chapel.” Hence our attempt at humor, calling them “Sisters of the Corn.” The sisters then sued to block the pipeline based on religious grounds (see Lancaster Nuns Demand “Religious Freedom” Trial re Pipeline). It was a flimflam lawsuit from the beginning and the courts saw through it. The case was thrown out by a lower court, and appealed to the U.S. Court of Appeals for the Third District. In July, the Third District tossed the case too (see Fed Court Tosses Lancaster Nuns’ Lawsuit re Atlantic Sunrise Pipe). The only legal option left to the sisters is to pray for a miracle–that the U.S. Supreme Court will hear the case, and find in their favor…
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    Risberg Pipe from NW PA to NE OH Plans Construction in October

    Click for larger version

    RH energytrans, which plans to build a 60-mile, $86 million pipeline from Crawford County, PA through Erie County and into Ashtabula County, OH, says they expect to begin digging for the new pipeline soon. RH officials told North Kingsville officials (Ashtabula County) last week that “construction could begin soon.” How soon? Early October, provided they get a final OK from the Federal Energy Regulatory Commission (FERC). Last October MDN brought you details about the proposed Risberg Line pipeline project (see New 60-Mile Pipeline Proposed from NW Pa. to NE Ohio). The project will use approximately 32 miles of existing pipeline in an established Right of Way originating in the Meadville, PA area. Approximately 16 miles of new pipeline will be built in Pennsylvania and approximately 12 miles of new pipeline will be built in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. In late June, FERC issued a favorable environmental assessment for the project (see 60-Mile Pipeline from NW PA to NE OH Gets Favorable FERC Review). A favorable EA is the penultimate step before FERC gives a final OK. That final OK is due no later than Sept. 27. Clearly RH believes they will get a final OK within the next two weeks, and they’re communicating with communities, alerting them construction is about to begin…
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    Jessup Town Board Grills Invenergy re Tiny Emissions Releases

    Antis on the Jessup (near Scranton, PA) Town Council delight in grilling officials from the Lackawanna Energy Center (LEC) at each monthly board meeting. LEC is a 1,480 megawatt, $1 billion Marcellus gas-fired electric plant still under construction, now 97% complete. When the plant is done it will be Pennsylvania’s largest natural gas-fired electric generating plant. The plant is being built in three trains or units. The first train/unit was done and online producing electricity since June–despite the efforts of a local group of antis who seized power of the local town board last November (see Jessup Town Board Continues Effort to Stop Gas-Fired Elec Plant). The second train went online in late July/early August. The third train will go online this month–in September. Cabot Oil & Gas is supplying all of the gas for the plant from neighboring Susquehanna County. At the monthly Jessup Council meeting last night, anti board members needled and smeared an LEC rep, implying LEC is hiding problems at the plant. Since May, when the plant began testing, there have been six releases of nitrogen oxide (NOx) emissions that exceeded state standards. On July 31, the plant exceeded the NOx standard of 2.0 parts-per-million (ppm) by a razor thin 0.1 ppm–for a whole 10 minutes. Which is a nothingburger. And yet the anti board members jumped all over LEC for not phoning up the neighbors the minute it happened…
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    Center for Responsible Shale Development has NOT Folded Its Tent

    Correction: MDN received the following statement on 9/11/18 from CRSD board member Chevron Appalachia to let us know that the organization is still alive and exploring a path forward for the future: “CRSD remains focused on its core mission of collaborating with a diverse group of stakeholders to drive continuous environmental performance improvement in shale gas operations throughout the Appalachian Basin. As was announced in a statement earlier this year, CRSD retained the services of the Meridian Institute to help it develop a long-range strategic plan that would enable the organization to build on the successes achieved in its first five years. The Board of CRSD is continuing its work with Meridian to finalize its long-term plan and will have more to announce once that effort is complete.” – Trip Oliver, Chevron Appalachia

    It appears that the Center for Responsible Shale Development (CRSD) is, for all intents and purposes, no more. CRSD began life as the CSSD, the Center for Sustainable Shale Development, back in March 2013 (see Important: Drillers & Enviros Form New Group, Launch Cert Program). The original CSSD was a closely guarded secret until it was unveiled. The organization was the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. The members worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, they would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe and “responsible” driller. We were somewhat skeptical from the start, but later relaxed our skepticism. One of the participants helping to birth the group was Bobby Vagt, at that time president of the Heniz Endowments. Because of his involvement, Mamma Teresa Heinz Kerry fired him (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?). There’s zero tolerance for reaching across the isle for Big Green radicals like Mamma Teresa. Other enviros who dared to participate were blackballed by the radical environmental movement. The CSSD soldiered on, despite several enviros leaving the fold, and awarded its first-ever certification in September 2014 to Chevron (see CSSD Bestows First Certification for Sustainable Drilling: Chevron). In the end, another three companies sought and received certification: Shell, CONSOL Energy (now CNX Resources) and EQT. It looks like you can’t fund a certification program with just four applicants. In April of this year, the renamed CRSD lost its executive director, Susan LeGros. The CRSD website has since removed the staff page and according to an industry source, the organization has folded its tent and is no longer in operation. Which we think is a shame…
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    Atlantic Sunrise Pipeline Delayed Another Week, Now Sept 17

    Today was the day that the $3 billion expansion of the Transco Pipeline in 10 northeastern Pennsylvania counties known as Atlantic Sunrise was supposed to up and running, following a slight delay from an August start (see Atlantic Sunrise Pipeline Slightly Delayed, Ready by Sept 10). But unfortunately, there’s been a second delay. Williams signaled last Friday that there will be yet another delay, due to weather. The start date, according to a notification on the Williams electronic bulletin board (below) is that Atlantic Sunrise will now be operational on or by September 17th–a week from today. However, we’d like to make an observation. Hurricane Florence is said to be aiming for the coast of North Carolina/Virginia, and on its current track, the remnants of that storm may well affect northeastern PA this coming weekend. So don’t be disappointed if there’s a third delay in the startup of Atlantic Sunrise…
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    Philly RINO Wants “Risk Assessment” of ME2, Now That It’s Built

    RINO (Republican In Name Only) Pennsylvania House of Representatives member Chris Quinn, from the Philadelphia area, introduced House Resolution 1034 last Wednesday. The resolution instructs the PA Dept. of Environmental Protection (DEP) and the PA Public Utility Commission (PUC) to prepare a “comprehensive risk assessment of the Mariner East 2 [ME2] Pipeline.” Even though ME2 is 99% built and will soon go online. The resolution, which if passed doesn’t have any practical effect since it’s not a law, is actually an exercise in political derrière covering. What if the DEP and PUC performed such a risk assessment, and what if the report they issued found there are some risks associated with ME2 (as there are will any/all pipeline projects, roads, electric lines, stepping outside your door, etc.)? What then? The pipeline isn’t going away. It’s still going to be used, now that it’s built. Such is how the game is played by political swamp dwellers. Quinn also says he’s about to introduce House Bill (HB) 2609 requiring the state Attorney General to draft a landowner “bill of rights”–issued to landowners who may be subject to eminent domain for pipelines. Can’t wait to see what that bill says…
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    CEC Interview: 6-9 Mo Delays for New Drilling Permits in PA

    Civil & Environmental Consultants (CEC) is a large engineering firm with offices scattered across the country. We’re not sure which office is “headquarters,” but we know they have a sizable office in Pittsburgh. While CEC provides services to a number of industries, they have been a big part of the Marcellus/Utica since its birth in the 2000s. As the Farmer’s Insurance commercials say, “They know a thing or two because they’ve seen a thing or two.” Which is, of course, an understatement. They know a lot because they’ve seen (and done) a lot–when it comes to the Marcellus. Another large company, law firm Buchanan Ingersoll & Rooney (headquartered in Pittsburgh), recently interviewed CEC Founding Principal and Strategic Development Officer Greg Quatchak for their “Energy Insider” series of interviews. Quatchak talks about CEC and it’s important role (as he should), but woven into the responses to BIR’s questions we learn some important information, like this: It still takes 6-9 months on average for Pennsylvania Dept. of Environmental Protection to issue Marcellus Shale drilling permits. In Texas it takes their counterpart (the Texas Railroad Commission) about a week to issue the same type of permit. Yes, there are important differences between Texas and PA–geography, wetlands, threatened/endangered species, archaeology. And yes, the time to get a permit in PA has improved over the past year or two. But come on, 6-9 months! Here’s an interesting interview of one of the principals in an employee-owned company…
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    6 Charged with Bypassing Emissions Controls on Marcellus Trucks

    We may not always agree with certain rules and regulations, but skirting or ignoring them is not an option. Especially not in the Marcellus industry. A small group of men (six so far) in Williamsport (Lycoming County), PA are accused of conspiring to illegally alter emission systems on 30+ trucks with heavy-duty diesel engines. The trucks belong to Rockwater Northeast of Canonsburg, a subsidiary of Rockwater Energy Solutions Inc. of Houston, Texas, used to haul fresh water and wastewater to/from Marcellus Shale wells being drilled. The men “tampered with and removed emission monitoring devices on trucks to reduce repair costs and maintenance down time.” Five of the six have already plead guilty, and a sixth was recently charged in the scheme. They all face jail time and stiff fines. Folks, this is not acceptable behavior for our industry…
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    Small Group of Old Hippies Oppose Shell Ethane Pipeline

    A small group boasting a big name, The Breathe Project, recently sent a letter to the Pennsylvania Dept. of Environmental Protection proclaiming their opposition to Shell’s planned Falcon Ethane Pipeline–a 97-mile pipeline system with two “legs” that will feed Shell’s mighty ethane cracker plant now under construction in Monaca, PA. Right. So the DEP and Shell should simply give up on the $6 billion ethane cracker, which can’t operate without ethane to feed it–ethane that will flow through this pipeline. Of course the group’s opposition is for show, maybe for fundraising, and certainly not serious. The funny thing for us was in viewing a picture of some of the members of the group, standing around clutching signs that say SHELL FALCON PIPELINE with a big circle/slash through it. The group, when you look at them, is the geriatric squad. Old folks. In our opinion, they look like old hippies–people who likely protested the Vietnam War in the 60s and have now found their new reason for living–to defeat a small ethane pipeline. On Thursday a tiny protest of the Falcon Pipeline (under two dozen people) caught the interest of the Pittsburgh Business Times on a slow news day…
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    PA Consumers Save $30B Over 10 Years Thx to Marcellus Shale

    Although the push is on to get Marcellus molecules to new markets where they can fetch higher prices, there is one group who has benefited in a major way from an overabundance of cheap, clean-burning Marcellus Shale gas. That would be the residents and businesses located in the great state of Pennsylvania. Industry group Consumer Energy Alliance has just published a new report that reveals PA residents and businesses have saved a cumulative $30.5 billion from 2006-2016 as a result of the decreasing price of natural gas in the state. Can you imagine the economic impact! What president or governor or state legislator wouldn’t salivate over a cash infusion of $30 billion over ten years! It’s mind-blowing. And it’s all thanks to the Marcellus Shale. And that $30B is just the savings that went into folks’ pockets (and got spent on other things). That number doesn’t even take into consider the billions upon billions of dollars paid out in signing bonuses, royalties, and drilling work done. The Marcellus industry has single-handedly lifted many PA residents out of poverty. Hey, how much revenue and how many jobs and how much energy savings have groups like Delaware Riverkeeper, Sierra Club, Clean Air Council, Food & Water Watch, PennEnvironment, PennFuture and other radical Big Green groups generated for PA? What’s that? They’ve actually COST the state money? Think about that the next time you read about these so-called environmental groups and how much they “care” about the Keystone State…
    Read More “PA Consumers Save $30B Over 10 Years Thx to Marcellus Shale”

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    Riverkeeper Lawsuit Against Atlantic Sunrise Tossed by Fed Court

    In May 2016, three Big Green groups–THE Delaware Riverkeeper, Lancaster Against Pipelines and the Sierra Club (fueled by money from the William Penn Foundation and Heinz Endowments)–conspired and sued the Pennsylvania Dept. of Environmental Protection (DEP) saying the DEP erred in granting federal Clean Water Act “401” stream crossing permits for Williams’ Atlantic Sunrise Pipeline project (see Dela. Riverkeeper Launches Lawsuit Against Atlantic Sunrise Project). It took nearly two and a half years, but yesterday the U.S. Court of Appeals for the Third Circuit finally rejected the lawsuit. Although the lawsuit was frivolous and a long-shot to begin with, we’re glad to see it resolved. It’s never good to have these lawsuits hanging out there–especially since startup of Atlantic Sunrise is coming any day now, which will be the ultimate victory over these nutters (see Atlantic Sunrise Pipeline Slightly Delayed, Ready by Sept 10). Riverkeeper’s Maya van Rossum, who fancies herself the sole protector of the Delaware River, threw a snit fit…
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    2nd PA Toilet Paper Plant Converting from Coal to Gas-Fired Elec

    In early 2013, the Proctor & Gamble manufacturing plant in Wyoming County (northeastern PA) began generating 100% of its own energy needs thanks to the Marcellus Shale beneath plant property (see PA P&G Plant: 100% Energy Self-Sufficient from Marcellus Gas). The plant, which manufactures Pampers and Luvs diapers and Charmin toilet tissue, uses a LOT of electricity and natural gas. They built their own gas-fired electric plant and began generating all of their own electricity–enough electricity to power 40,000 homes! Fast forward to today. P&G competitor Kimberly Clark has just announced that it too will build a gas-fired electric plant, in Delaware County (near Philadelphia), to power its plant that manufactures Scott 1000 toilet paper. What is it about toilet paper and gas? Kimberly Clark is getting a $6 million grant from PA toward the $150 million project. Make way for another new major customer for PA’s Marcellus fracked gas…
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    Pittsburgh Utility Experiments with NatGas Fuel Cells in Homes

    An intriguing concept: What if you could generate your own electricity for your own home–without big, ugly solar panels plastered on your roof, or without an unsightly (and loud) wind mill stuck in your yard? What if all you need is a natural gas pipeline connected to your home. What’s that? You don’t want to contribute to man-made global warming by *burning* natural gas? No problem. This nifty little invention, called a fuel cell, uses natural gas in a *chemical* reaction to create electricity. These types of fuel cells have been around for a while, but what’s new is that they are now getting good enough to be commercially viable. Peoples Natural Gas, the largest natural gas distribution company in PA, providing natural gas service to approximately 700,000 customers in western PA, West Virginia, and Kentucky, has cut a deal with a Westmoreland County fuel-cell manufacturer to put 100 test systems in customer’s homes to create electricity at home. It’s an experiment. If all goes well, more will be deployed. Remember when cable companies first began offering internet access, then telephone access? Yeah, electric utilities and electric generators might want to look over their shoulder. They may get some serious competition! If natgas fuel cells ever take off for the residential market, demand for natural gas would be ginormous. Hence our interest. Is this technology anywhere near mainstream yet? No. But let’s keep a close eye on this potential new market for Marcellus/Utica gas. It may happen sooner than you think…
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    PA Natural Gas Production Hits Another All-Time High in 2Q18

    Last Thursday the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Apr-Jun 2018 (full copy below). It shows natgas production rose 9.9% compared to the same period last year–same as the increase in 1Q18 (see PA Natural Gas Production Hits New All-Time High in 1Q18). The report also shows the number of producing wells is up 10.4% from last year. Total natural gas production volume was 1,455.8 billion cubic feet (Bcf), and the number of producing wells in 2Q18 was 8,672 (of which 8,194 were shale wells). The biggest news is that once again 2Q18 saw the highest quarterly production of natural gas in the state–ever. This is the seventh quarter in a row there has been an increase in production. Two-thirds of the state’s natural gas production consistently comes from four counties: Susquehanna, Washington, Bradford and Greene. The #1 county for natgas production in 2Q18 was, as it was in each quarter of 2017 and in 1Q18, Susquehanna County, in the northeastern corner of the state. The #1 producing driller in Susquehanna County is Cabot Oil & Gas. Here’s the full 2Q18 natural gas production report from the IFO…
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    Shell Ethane Cracker Gets Reprieve from Trump Steel Quotas

    Shell ethane cracker plant under construction in Monaca, PA – so many cranes you can’t count them!

    RINO Pat Toomey can rest easy–there will be no delays in building the $6 billion Shell ethane cracker near Pittsburgh. The Trump Administration previously slapped a 25% tariff (i.e. tax) AND quotas on imported steel coming from countries dumping steel in our markets, driving out our own steel industry. Last week Trump lifted the quota from steel coming from certain countries, including Brazil. Shell is getting steel they need for the cracker from Brazil. Indeed, Shell’s Brazilian steel is already sitting in a U.S. port, undelivered due to the quota (a limit on how much can be imported). Now Shell’s steel can get shipped to Pittsburgh and used by the army of people working there. But get this: Shell will still have to pay the 25% tariff/extra charge for their Brazilian steel. Toomey, an early and persistent Trump critic (and a DC swamp dweller), one of PA’s two U.S. Senators, recently claimed Trump’s quotas/tariffs would result in layoffs and delays at the cracker (see Sen. Pat Toomey Claims Trump Tariffs Will Delay Shell Cracker). With that barrier now gone, Toomey will have to find something else to criticize about Trump. How about his hair?…
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