Pennsylvania

Alternative Energy | Industrywide Issues | Pennsylvania | Statewide PA

PennEnvironment Wants Fossil Fuel-Powered (i.e. Electric) Buses
May 7, 2018May 7, 2018

Last Thursday the radical Big Green group PennEnvironment released a “study” that claims PA should move to adopt electric buses, instead of all other alternatives (like compressed natural gas) because electric buses are (supposedly) more environmentally friendly. We understand the argument about replacing diesel-powered engines to lower the amount of nasty stuff that enters the air. But PennEnvironment’s argument to use electric buses is as much about reducing mythical global warming as it is reducing diesel emissions. And here’s the thing PennEnvironment doesn’t tell you (and what their Big Green supporters are too dull to figure out themselves): electricity comes from somewhere. It’s not magic. It’s produced. In PA, as of January 2018, 54% of all electricity is produced either by coal or natural gas-fired plants. Another 40% is produced by nuclear plants. How much electricity is produced in PA by all those gigantic windmills you see when sailing down the Pennsylvania Turnpike, along with solar? A measly 2.9%. So how “clean” are electric buses, really? Put another way, the majority of what powers electric buses is good old fossil fuels. Does PennEnvironment know they’re advocating for more fossil fuel use? Meanwhile, the Wolf administration (surprisingly) continues to invest in CNG buses, which is the smart thing to do…
Read More “PennEnvironment Wants Fossil Fuel-Powered (i.e. Electric) Buses”
Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Sunoco’s ME1 Pipe Restarts, ME2 Pipe Pays Another $355K in Fines
May 4, 2018May 4, 2018

On March 3, the Mariner East 1 (ME1) natural gas liquids (NGL) pipeline was suddenly switched off by order of the Pennsylvania Public Utility Commission (PUC) after a sinkhole opened up under the pipeline in Chester County, exposing some of the bare steel to the open air (see PA PUC Shuts Down Mariner 1 Pipeline Due to Mariner 2 Sinkhole). Sunoco Logistics Partners, the owner of ME1, is building a new set of pipelines called Mariner East 2 (ME2) close to the existing ME1 pipeline. Construction work in the area on ME2 led to the sinkhole that exposed ME1. The PUC asked Sunoco to drill holes and pour concrete in them to firm up ME1, which Sunoco did (see PA PUC Asks Sunoco to Drill Holes, Pour Concrete to Firm Up ME1). A full two months after ordering ME1 turned off, costing Sunoco (and Range Resources) millions of dollars in lost revenue, the PUC told Sunoco they could restart ME1. As of today, propane and ethane have resumed flowing through ME1. But what The Almighty State grants with one hand, it takes away with the other. Although Sunoco paid a massive $12.6 million fine in February to the Dept. of Environmental Protection related to ME2 construction misadventures (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction), yesterday the DEP assessed Sunoco *another* $355,622 penalty for more ME2 misadventures–what DEP calls “violations of the Clean Streams Law”…
Read More “Sunoco’s ME1 Pipe Restarts, ME2 Pipe Pays Another $355K in Fines”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Shale Industry Outlines Case Against Latest PA Severance Tax Plan
May 4, 2018May 4, 2018

As we reported earlier this week, Pennsylvania Gov. Tom Wolf, who has been lauded as the most liberal governor in America, once again pushed for a Marcellus-killing severance tax (see Broken Record: Wolf, Dems & RINOs Float 4% Severance Tax). Since Wolf stood flanked by two Republican and two Democrat lawmakers earlier this week in announcing a pair of new severance tax bills, mainstream media has continuously run the headline of a “bipartisan” effort. What they don’t tell you is that the two RINOs who stood with Wolf are just about the only ones who support this lunacy. As must happen with each renewed effort by Wolf to steal money from the industry to hand it over to teacher unions in Philadelphia (which IS the purpose of the severance tax, we are not engaging in hyperbole), the industry must launch a counter-offensive. The shale industry, in remaining vigilant, has published a number of comments and columns to set the record straight. We must tell the truth about Wolf’s proposed severance tax. Stepping up the plate to do so is the Marcellus Shale Coalition (MSC), the Pennsylvania Independent Oil & Gas Association (PIOGA), and the American Petroleum Institute of PA (API-PA). Here, in their own words, is the response to Wolf’s “four year bad idea”…
Read More “Shale Industry Outlines Case Against Latest PA Severance Tax Plan”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Southwestern Energy | Statewide PA | Susquehanna County

Another Look at “Rule of Capture” Case that Threatens PA Marcellus
May 4, 2018May 4, 2018

MDN brought you important news in April that the Pennsylvania Superior Court had handed down a decision (known as the “Briggs” case) that has the power to greatly restrict, perhaps even stop, Marcellus drilling in PA (see PA Superior Court Overturns “Rule of Capture” for Marcellus Well and PA “Rule of Capture” Case has Power to Limit Marcellus Drilling). The issue, in brief, is that the Superior Court decision disallows using an age-old principle called the “rule of capture” when it comes to shale drilling and fracking. It opens the door to a myriad of frivolous lawsuits claiming that a fracture, a crack created during fracking, is draining gas from a neighbor’s property without justly compensating the neighbor for the gas. Southwestern successfully argued in a lower court that the odd crack here and there that may slip under a neighbor’s property is permissible. The landowner appealed to Superior Court and three judges heard the case. Southwestern, following the decision, petitioned the Superior Court to have all of the sitting justices (called en banc) hear the case (see Southwestern Appeals “Trespass” Case to Entire PA Superior Court). No word yet on whether the Superiors will do it. In the meantime, we spotted an article by the ace lawyers at the Blank Rome law firm discussing the case and its implications. We can’t stress enough just how critical this case is to the future of drilling in Pennsylvania, which is why we bring you the following…
Read More “Another Look at “Rule of Capture” Case that Threatens PA Marcellus”
Ashtabula County | Crawford County | Energy Services | Erie County | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | RH energytrans

FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29
May 3, 2018May 3, 2018

Click for larger version

Last October MDN brought you details about the proposed $86 million 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 installed in Pennsylvania and approximately 12 miles of new pipeline will be installed in Ohio–meaning 28 miles of brand new “greenfield” pipeline needs to get built. Two school districts in Ohio where the pipeline will traverse agreed to reduce the amount of property tax the pipeline would need to pay by 75% over a 15-year period, a huge vote of confidence (see Update on Proposed 60-Mile Pipeline from NW Pa. to NE Ohio). We have an update on the project. On Tuesday, the Federal Energy Regulatory Commission (FERC) said it will issue an environmental assessment (EA) for the project on or by June 29th. Both the U.S. Army Corps of Engineers and the Pennsylvania Fish and Boat Commission are “cooperating agencies” and part of the EA review process. Following the EA, the clock will begin ticking and FERC will have until Sept. 27th to make a final decision about the project…
Read More “FERC Review of Risberg Pipeline in NE OH/NW PA Coming June 29”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Bills Limit PA DEP Permit Appeals, Reduce Enviro Judge Terms
May 3, 2018May 3, 2018

As we reported yesterday, Big Green radicals in Pennsylvania are grumpy that the PA House passed five bills meant to fix the dysfunctional PA Dept. of Environmental Protection (see PA House Passes 5 Bills to Fix Broken DEP, Environuts React). Conservative Republicans in the House continue to play offense (which we love). On Monday of this week, PA Sen. Camera Bartolotta (R-Washington) sent around a memo to fellow House members asking them to co-sponsor two new bills she plans introduce. The first bill will narrow the grounds on which a DEP-issued permit may be appealed. Antis love to file endless appeals of permits for drilling and pipelines, dragging out the process in hopes of eventually defeating a given project. The first bill will fix that. The second bill reduces the terms of sitting Environmental Hearing Board judges. If a judge has been on the bench for 10 or more years, their term will expire and they will not get a chance to continue. The second bill is aimed at draining the EHB swamp (pun intended). Both bills are common sense measures, and of course, Big Green radicals are already howling at the moon because of them…
Read More “New Bills Limit PA DEP Permit Appeals, Reduce Enviro Judge Terms”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Antis Weaponize PA Enviro Rights Amendment in Effort to Kill Shale
May 3, 2018May 3, 2018

AR-15 rifle

The Pennsylvania Environmental Rights Amendment (ERA), passed by the good citizens of PA in 1971, is a poorly worded piece of legislation with good intentions, adopted in a hurry in response to a disaster. Like all legislation that’s hurried and adopted in response to disasters (natural or man-made), the ERA is deeply flawed. Antis are now using the ERA as a bludgeon–perhaps a better analogy is more like an AR-15 semi-automatic rifle–in their attempt to assassinate the Marcellus Shale industry. Unfortunately, they are having some success in the PA court system. The ERA laid dormant after its adoption until an awful PA Supreme Court decision in 2013 breathed new life into it for antis (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). Since that time, antis have sued drillers and pipeline companies a number of times, citing the ERA, and in some cases winning (see PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev). Emboldened by these wins, “Article 1, Section 27” as the ERA is known, is being employed in more places, even (especially) outside the court room…
Read More “Antis Weaponize PA Enviro Rights Amendment in Effort to Kill Shale”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA House Passes 5 Bills to Fix Broken DEP, Environuts React
May 2, 2018May 2, 2018

In March the Pennsylvania House State Government Committee debated and voted to approve a slate of five bills aimed at fixing not only the slowmo way the state Dept. of Environmental Protection (DEP) approves shale permits, but also roll back some of the egregious regulatory overreach that now exists in PA (see PA House Committee Approves 5 “Fix DEP” Bills – What’s Next?). The vote to report the bills out of committee was along party lines, with zero liberal Democrats voting in favor of fixing the DEP. In a move that has alarmed and angered Big Green and its supporters, all five bills were voted on by the full House yesterday–and all five passed! Once again, not a single Democrat voted to fix the DEP. What happens now?…
Read More “PA House Passes 5 Bills to Fix Broken DEP, Environuts React”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Broken Record: Wolf, Dems & RINOs Float 4% Severance Tax
May 1, 2018May 1, 2018

Every year it’s the same thing from “America’s most liberal governor,” PA’s Gov. Tom Wolf: propose a severance tax on natural gas production, a tax in addition to the existing impact tax (which is already the equivalent of a severance tax), and demagogue the issue in hopes of shaming/pressuring/bullying Republicans into passing such a tax. When/if such a tax is passed, give every last dime of it to teachers unions in the Philadelphia area–the people who elected Wolf to office. That’s been Wolf’s modus operandi since he assumed office. And it has just happened again, for the fourth time. Wolf, along with two liberal Democrats and two Republicans in Name Only (RINOs, from the Philly area) gathered yesterday to announce new severance bills introduced in both the PA House and Senate that will slap a Marcellus-killing 4% tax on shale production, on top of the existing ~4% impact tax. Here we go again…
Read More “Broken Record: Wolf, Dems & RINOs Float 4% Severance Tax”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA

PA Court Rules ME2 Pipe has Power of Eminent Domain, Period
May 1, 2018May 1, 2018

One of the ways anti-fossil fuel groups have tried to stop the Mariner East 2 Pipeline project is by tying it up in court. Various lawsuits have been filed going back years (see our list of lawsuit stories here). One litigant, a Big Green group headquartered in Philadelphia, the so-called Clean Air Council, has tried repeatedly to get the courts to deny ME2 the right to use eminent domain in cases where landowners refuse to cooperate (see Clean Air Council’s Strange War Against Mariner East Pipeline). CAC argued that ME2 is not a “public utility” and therefore not entitled to the use of eminent domain. That argument flamed out. They also argued since ME2 crosses a state boundary–into a small part of Ohio–it’s not an intrastate but interstate project and should be subject to the Federal Energy Regulatory Commission (FERC) instead of the PA state Public Utility Commission (PUC). That argument bombed too. CAC then argued ME2 is using a public taking for a private enterprise (not for the public good). Also tossed out. A court case that began in 2015 made its way to the PA Commonwealth Court and yesterday the Commonwealth Court finally shut down the CAC’s long-running lawsuit once and for all, denying their wild claims…
Read More “PA Court Rules ME2 Pipe has Power of Eminent Domain, Period”
Crime | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

ATF Cuts Back on Agents Hunting for Perps Who Stole Dynamite
May 1, 2018May 1, 2018

As we previously reported, someone(s) stole a bunch of dynamite and the blasting caps (used to ignite the dynamite) on the weekend of April 14-15 from a locked storage trailer sitting at an Atlantic Sunrise Pipeline construction site in Lancaster County, PA (see Dynamite Stolen from Atlantic Sunrise Pipe Site in Lancaster County, PA). The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) immediately swung into action, offering $20,000 for information leading to an arrest and flooding the county with agents (see ATF Doubles Reward re Stolen Dynamite; 40 Agents in Lancaster Co.). Then last week, someone discovered some, perhaps all of the stolen dynamite (see Stolen Dynamite from Atlantic Sunrise Site Discovered in Creek). The ATF has still not found a suspect. They now believe the amount of dynamite recovered was all of it. Some 10 agents are left in the county, working their way through interviewing 900 workers who had access to the site…
Read More “ATF Cuts Back on Agents Hunting for Perps Who Stole Dynamite”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Atlantic Sunrise Doles Out $264,300 in Grants to Schools, Towns
May 1, 2018May 1, 2018

Pipeline companies are known for their largess in showering local schools, towns and nonprofit agencies with money for worthy causes. Among those who engage in this civic practice is Williams’ Atlantic Sunrise Pipeline project. Atlantic Sunrise is 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, PA. In 2015, the Atlantic Sunrise Community Grant Program was established to benefit community organizations in communities within the Atlantic Sunrise footprint. Since 2015, the Atlantic Sunrise has doled out more than $2 million across the 10-county project area in support of noteworthy projects. And they’ve just done it again. A total of 41 PA organizations have just received a total of $264,300 in contributions–more than a quarter of a million dollars! We have the full list below, along with information about how your organization can apply for the next round…
Read More “Atlantic Sunrise Doles Out $264,300 in Grants to Schools, Towns”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G 1Q18: Important New Markets Opening Up Now
April 30, 2018April 30, 2018

Note: A previous version of this post incorrectly stated Cabot is pumping 3.75 Bcf/d of natural gas now. The correction is that according to the CEO, the company has the capability to pump that much as soon as all pipelines are in place and existing planned wells are online–likely in 2020. We regret the error!

One of our favorite Marcellus drillers, Cabot Oil & Gas, provided their first quarter 2018 update on Friday. Cabot never disappoints! What did we learn from the update? For one thing, when all pipeline infrastructure is in place and all planned wells are drilled and online, the company will be pumping a massive 3.75 billion cubic feet per day (Bcf/d) of natural gas out of Susquehanna County, PA. Cabot is working with Williams to increase the capacity of their gathering system to support even more gas than 3.75 Bcf/d. It would not surprise us if Cabot becomes the first 4 Bcf/d Marcellus/Utica driller in the next few years. So Cabot has plenty of production. What about demand? Lots of production with little or no demand equals prices in the basement. There was good news on the demand front too. Cabot said there are two gas-fired electric plants starting up by June 1st–both of them powered with Cabot Marcellus gas. Add to that the now-operational Cove Point LNG export plant with Cabot’s contract to sell gas to Japan–and it equals a massive increase in demand for Cabot’s gas going into the second quarter. Later this year, in the second half sometime, Atlantic Sunrise will come online increasing Cabot’s flow to new markets even more. We’d call Cabot’s Friday 1Q18 update the “stars are finally in alignment” update for Cabot. Here are some more pickings from the update, along with a copy of the full update…
Read More “Cabot O&G 1Q18: Important New Markets Opening Up Now”
Energy Companies | EQT Corp | Greene County (PA) | Lease & Royalty Payments | Pennsylvania | Washington County

EQT Pays PA DCNR $874,200 to Lease Under Ten Mile Creek
April 30, 2018April 30, 2018

This is a story that continues to bug us. The state of Pennsylvania, specifically the Dept. of Conservation and Natural Resources (DCNR), is grabbing money that we think belongs to private landowners. The DCNR has been, for years, claimed that under a centuries-old law that the state of PA “owns” the property under “navigable” waterways–including rivers and streams (see PA DCNR Publishes Lease Agreements for Deals Under Rivers/Creeks). We understand the state claiming the Delaware River, and maybe the Susquehanna River, is a “navigable” body of water. The DCNR uses the “navigable waterway” excuse to sign leases with drillers under much smaller waterways than the Delaware and Susquehanna–siphoning money that would have gone to landowners. A landowner might own the land on both sides of, say, Ten Mile Creek, as we’re sure happens. However, the land under Ten Mile Creek does not technically belong to them. In fact, certain long portions of the land under Ten Mile Creek are now leased to EQT, and EQT paid handsomely for it. The company leased 218.55 acres under Ten Mile Creek in Greene and Washington counties (southwestern PA) for $874,200, which works out to be exactly $4,000 per acre! Not to mention a whopping 20% royalty! That’s money that (in our opinion) should go to the landowners who own the land along the creek, not to the state. Until landowners sue or the legislature acts, the state will continue to pick the pockets of landowners who own land along PA’s waterways…
Read More “EQT Pays PA DCNR $874,200 to Lease Under Ten Mile Creek”
Coterra Energy (Cabot O&G) | Electrical Generation | Energy Companies | Industrywide Issues | Lackawanna County | Luzerne County | Pennsylvania

Cabot Says 2 NEPA Gas-Fired Plants Go Operational by June 1
April 30, 2018April 30, 2018

Lackawanna Energy Center – concept drawing

Tucked away in the comments made by Cabot Oil & Gas CEO Dan Dinges on an investor conference call last Friday, MDN picked up on what we consider big news: Both the Moxie Freedom (Luzerne County, Wilkes-Barre area) and Lackawanna Energy Center (Lackawanna County, Scranton area) Marcellus-fired power plants are about to go fully operational–sometime in May (by June 1). Both plants will exclusively use Marcellus gas extracted by Cabot in Susquehanna County, PA. For nearly a year the plan had been for Moxie Freedom to be built and online in May of this year, so that announcement isn’t so much a surprise as it is welcomed news (see NEPA Moxie Freedom Power Plant on Track for May 2018 Launch). However, in March we reported Lackawanna was going through a “short” commissioning stage and would be firing up at any time (see Gas-Fired Power Plant Near Scranton Nears Startup; Yellow Smoke). The Lackawanna project has faced fierce local resistance. A group of Democrats got themselves elected to the local town board in Jessup, taking office in January, trying their best to block startup of the Lackawanna project by employing a Big Green lawyer (who works for Riverkeeper) at a cost to taxpayers of $225/hour. Looks like it was wasted money as Dinges says Lackawanna will be operational, with large volumes of Cabot gas flowing to it, within weeks…
Read More “Cabot Says 2 NEPA Gas-Fired Plants Go Operational by June 1”
Chester County | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

Philly Dem Senator Tries to Shut Down ME2 Pipe Construction
April 30, 2018April 30, 2018

PA State Senator Andy Dinniman

A Chester County, PA (Philadelphia area) Democrat State Senator by the name of Andy Dinniman (who we think looks like Tony Soprano) continues his mission to stop the Mariner East 2 (ME2) project. This is nothing new for Dinniman. He’s been agitating and lobbying and demanding and pouting for over a year in his quest to shut down ME2 (see our Dinniman stories here). According to a press release from Dinniman issued last Thursday, the Senator has filed “a formal legal complaint and a petition for interim emergency relief with the Pennsylvania Public Utility Commission (PUC) to prohibit construction of the Mariner East 2 (ME2) and Mariner East 2X (ME2X) pipelines in West Whiteland Township.” Dinniman claims Sunoco Logistics Partners (builder of ME2) has 20 days to respond to the complaint. No doubt Sunoco will respond, and there’s little doubt the PUC will not do anything about Dinniman’s request…
Read More “Philly Dem Senator Tries to Shut Down ME2 Pipe Construction”