Pennsylvania

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    Shell to Remediate PA Swamp in Return for Falcon Pipe Permit

    Shell is proposing to remediate a swamp in Mercer County as a way to “offset” the “impacts” of building an ethane pipeline to feed it’s mighty cracker plant under construction in Beaver County. Oops. Sorry. Instead of calling it a swamp, the PC term is “wetland.” Shell will make a swampy portion of Neshannock Creek in Mercer County swampier, in return for permission to build the Falcon ethane pipeline elsewhere. Apparently it’s not the first time Shell has proposed such a swap. Shell is in the middle of remediating a swamp in Washington County in return for “local impacts” (i.e. “damage” to the environment) they’re causing by building the cracker plant itself. This is not an uncommon practice–across the country. We happen to think it’s silly. Either a project is worthwhile–worth “damaging” some of our precious environment, because of the greater good it will bring–or not. Playing this game of “I’ll spoil this area here, so I’ll un-spoil that area over there” is senseless, in our humble opinion. But hey, if that’s the game we must play to get it built…
    Read More “Shell to Remediate PA Swamp in Return for Falcon Pipe Permit”

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    FERC Rejects PennEast Pipe Rehearing Request – Antis Sue

    Elvis – song & dance

    Last Friday the Federal Energy Regulatory Commission (FERC) denied a rehearing request by radical enviro groups with respect to the PennEast Pipeline project. That is, FERC said “we’re sticking with our original decision to approve the project.” In January, FERC voted 4-1 to approve the $1 billion, 120-mile natgas pipeline that will stretch from northeast PA to the Trenton area of New Jersey (see FERC Grants Final Approval for PennEast Pipe – Real Battle Begins). FERC Commissioner Richard “Dick” Glick voted against the project claiming it will lead to more man-made global warming. But the other Dem FERC Commissioner, Cheyl LaFleur, voted to approve it–at least in January. In Friday’s “order on rehearing” LaFleur flipped and said she’s had second thoughts about the project. She voted “in part” to rehear the original decision. Glick voted to rehear. Bottom line: both LaFleur and Glick want to kill the PennEast project. That’s the upshot of Friday’s FERC communication. Unfortunately FERC Commissioner Rob Powelson has abandoned us and we will now face a 2-2 deadlock on key decisions like this one for the foreseeable future–because Senate Democrats will block a vote on a new, third, Republican member of the Commission until after the November election. Thanks Rob. The radical anti groups that filed the rehearing request–THE Delaware Riverkeeper (aka Maya van Rossum) and the NJ Sierra Club (aka Jeff Tittel)–immediately filed lawsuits with the Washington, D.C. Circuit Court of Appeals. The antis could only take their case to court once FERC had denied a rehearing request. That’s the song and dance routine we must go through on the way to fighting to build every square inch of any new pipeline project in the northeast. Pipeline company files application, FERC approves, radical groups request a rehearing, rehearing denied, lawsuit filed. That’s the formula that plays out over and over again. Below is a copy of FERC’s approval along with details about antis filing their lawsuits…
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    100+ PA Landowners Sue EQT re Gas Storage Field Payments

    According to Washington County, PA landowner Joe Raposky, EQT has been storing natural gas under his property in Finleyville without permission and without compensation since at least 2007. Last year Raposky asked EQT to compensate him and they refused. So Mr. Raposky has organized over 100 of his neighbors along with landowners who sit over top of other similar underground storage fields in the region, and on July 30 they filed a lawsuit against EQT. PA has some 60 gas storage fields spread across 26 counties in the state. The fields are used to temporarily store and then retrieve natural gas. Storage, which is not something we write about very much, is in fact a big deal when it comes to the natural gas market. Not all gas is used as soon as its extracted and sold along a pipeline. There are two main “seasons” in the natural gas industry–injection season, from April 1 through October 31, when a surplus is stored underground, and withdrawal season, from November 1 through March 31, when more gas is used than is produced. Storage fields like the one in Finleyville are an important part of the natgas puzzle. In some cases, landowners are only now becoming aware of the existing fields under their feet and they (rightly) want to be compensated for the use of their property. Is storage the next big bone of contention between landowners and drillers?…
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    PA PUC Wants to Expand 811 to Include Stripper Wells

    In just about every state in the country, before you start digging a hole in the ground for some reason (water well, septic system, laying an underground electric line, etc.)–the first thing you do is call 811 or some similar phone number. The “one call” or “first call” reaches a state-authorized (not necessarily state-run) office where they have, on file, maps detailing any kind of underground cables, pipelines and other infrastructure. If such underground structures exist, a representative of the owner for the underground line will, if necessary, stop by and mark the areas so when you do begin digging, you don’t hit it. Makes sense. A bill introduced in 2016 in the Pennsylvania legislature “enhances” the existing 811 law in PA. One of the “enhancements” is that it removes an exclusion for low-pressure natural gas gathering pipelines from being required to be part of the 811 system, mainly lines run to conventional gas wells. The bill was opposed by the Pennsylvania Independent Oil & Gas Association (see PIOGA Opposes Bill to Regulate Unregulated PA Gathering Pipelines). The bill was reintroduced in March 2017 (see PA State Senator Introduces Bill to Regulate Gathering Pipelines). Once again PIOGA pushed back. In June 2017, a compromise was reached to exclude pipelines running to “stripper wells”–i.e. low-producing conventional wells. With that compromise in place, both the PA Senate and House voted to adopt the plan and it was signed into law (see Shale + Large Conventional Gathering Pipes Added to PA One Call). The PA Public Utility Commission (PUC) is the state agency charged with oversight of the enhanced 811 system. They have been staffing up and rolling out the changes. We spotted a story that talks about the PUC’s efforts. It mentions (bemoans) the fact that stripper wells are still exempt, and seeks to apply pressure to the owners of those wells to “voluntarily” join the 811 system. We all know what comes next after “voluntarily” joining any government-run program…
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    Chesapeake Settles NEPA Royalty Lawsuit for Pennies on the Dollar

    Chesapeake Energy has, according to the Pittsburgh Post-Gazette, “reached a $7.75 million settlement agreement with about two-thirds of its Pennsylvania natural gas royalty owners.” At the end of last year Chesapeake Energy offered a $30 million deal to Pennsylvania landowners to settle claims the company had screwed them out of royalty money by artificially inflating post-production costs in an elaborate scheme to pocket more money at landowners’ expense (see Chesapeake Agrees to $30M Royalty Settlement for PA Landowners). Chesapeake’s proposed deal last year would have given the average PA leaseholder (some 14,000 of them) a one-time $2,140 payment–adjusted up or down for the size of their acreage. This new deal, for 10,000 of the same leaseholders, offers $7.75 million–an average of $775 per landowner. Which is piddly. It’s nothing. An insult. Last year Chesapeake’s deal with leaseholders required the state Attorney General’s office, which has an ongoing, separate lawsuit filed against Chesapeake over the same issue, to settle as well. The AG’s office refused (see PA AG Not Backing Down re Chesapeake Energy Royalty Lawsuit). In fact, the AG’s office is still refusing to settle, with this new deal. Yet now Chesapeake is willing to move forward without the AG as part of the settlement. Heck yeah! Convince these desperate folks to take, literally, pennies on the dollar. What company wouldn’t go for that deal? Any way you slice this, northeast PA landowners are getting screwed if they agree to Chesapeake’s deal. They get a maximum of 8% back of the inflated “costs” Chesapeake originally deducted from royalty checks. We suppose some will say 8% now is better than maybe nothing or very little years from now. We don’t see it. We see these good landowners getting shafted in this deal…
    Read More “Chesapeake Settles NEPA Royalty Lawsuit for Pennies on the Dollar”

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    Other Shoe Drops: PA Methane Emissions Regs for Existing Sources

    Pennsylvania Gov. Tom Wolf’s Administration has been fiddling with proposed regulations to cut down on so-called fugitive methane emissions from drilling and pipelines for years. The regulations are known as General Permit 5 (GP-5) and General Permit 5A (GP-5A). GP-5 applies to pipelines and compressor stations, while GP-5A applies to well pads and drilling. In June, the PA Dept. of Environmental Protection (DEP), author of the revised regs, published its final final final final version of the regs (see PA DEP Releasing Onerous New GP-5 & 5A Methane Regs June 8). The new regs will go into effect this month. But here’s the thing. These onerous regulations apply only to *new* and not *existing* sources of methane emissions. With the revised regs about to go into effect for new sources, right on cue Big Green groups began pressuring Wolf to apply them to existing sources too (see Big Green Pressures Gov. Wolf to Expand Onerous Methane Regs). That was, of course, the intention all along–to hamstring (and shut down) the Marcellus industry by saddling it with insanely high costs to comply with regulations that won’t do a thing to “save the planet” from methane poisoning (a non-existent threat). Unfortunately the Wolf DEP is signaling it will propose insanely onerous new methane emissions regulations for *existing* sources in early 2019. So this is fair warning to the industry to begin a counter-offensive now. It’s also fair warning to conventional drillers–the DEP is going to float new regs for you in 1Q19 as well…
    Read More “Other Shoe Drops: PA Methane Emissions Regs for Existing Sources”

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    Frack Sand Operation in SWPA is Leaking Sand into Nearby Community

    frack sand

    We spotted a story in the Pittsburgh Post-Gazette that concerns us. There is a transloading terminal in Stowe Township (Allegheny County, Pittsburgh area) that handles, among other things, frack sand. The facility has been there since 1969, so the neighbors can’t complain about stuff coming in by barge (or rail) and going back out by never-ending truck trips. You move to that area, you know what you’re getting. However, one thing the neighbors didn’t bargain for is sand–along roads, bridges, even inside on the furniture. Frack sand is super fine–very small–and acts like asbestos when it gets in your lungs. Not a good thing. OSHA has all sorts of rules for how to handle frack sand. And yet the sand in Stowe is leaking out of rail cars and trucks and ending up scattered throughout the nearby community of Stowe and McKees Rocks. The following story is written by Post-Gazette “reporter” Don Hopey–who is an anti-drilling propagandist. He spins whatever minor foible he can find in the shale industry into a major offense, a crime against the environment and humanity. However, in this case, the concerns Hopey writes about are warranted and should be addressed immediately…
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    Cool New Video Debunks/Explains PA Severance Tax Issue

    Mark Mathis – Clear Energy Alliance

    A killer video on the topic of a severance tax in Pennsylvania has just been published (on Youtube) by the Clear Energy Alliance. The severance tax issue is one that we’ve tracked and written about for years–since Ed “fast Eddie” Rendell was governor. MDN caught up with Mark Mathis, founder of CEA, to talk about his latest video. Mark is an author and documentary film maker, and before that, a television reporter and anchor for ten years. Mark said he’s “a big language guy.” He began tracking issues in the energy industry some 15 years ago. Mark maintains the language we use to talk about energy is wrong–that the public doesn’t really understand. The PA severance tax issue is a perfect example. According to Mark (and the 4 1/2 minute video) PA Gov. Tom Wolf is being disingenuous when he says PA is “the only state without a severance tax.” While technically that’s true, what Wolf and other Harrisburg politicians don’t say is that PA has an “impact fee”–the equivalent of a severance tax. Plus PA has the second highest corporate income tax in the country, while other severance tax states (like Texas) have no corporate income tax. It’s virtually impossible to run an apples to apples comparison when it comes to how much a given company pays in taxes in a specific state. But according to Mark, slapping an additional tax on natural gas production in PA would be a disaster. The short video (which you MUST watch) explains it all in just a few minutes…
    Read More “Cool New Video Debunks/Explains PA Severance Tax Issue”

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    PA Supremes Order Rehearing for Rex Permits Near Martian School

    The Martians and their allies have attacked once again. Run for the hills! This is a long-running story that’s just taken another (unfortunate) twist. A handful of anti-drilling parents from the Mars School District (“Martians”) in Butler County, PA, backed by money and legal help from Philadelphia Big Green groups THE Delaware Riverkeeper and the Clean Air Council, have filed frivolous lawsuit after frivolous lawsuit (see Martians Use Riverkeeper to Continue Court Battle Against Rex). The effort is aimed at denying landowners in Middlesex Township revenue from legally permitted drilling. The actions by these radicalized parents have cost the taxpayers of Middlesex Township over $100,000 in legal fees (we hope the taxpayers enjoying paying for this folly). Eventually most of the lawsuits were won by the good guys and at least two wells got drilled. However, in 2016 the Martians appealed a town ordinance that allows the wells to be drilled about 3/4 of a mile from the school. A panel of three western PA judges in Commonwealth Court heard arguments in the case, and in June 2017 the judges ruled against Riverkeeper and the Martians (see Dela. Riverkeeper Loses Martian Case to Stop Rex Energy Drilling). Riverkeeper, using funding from the William Penn Foundation and Heinz Endowments (among other Big Green funders) pressed on, all the way to the PA Supreme Court. Last Friday the Supremes proved they aren’t so supreme after all. In a ruling, the Supremes told Commonwealth Court to do it over again, this time considering PA’s so-called Environmental Rights Amendment as part of their thinking. In other words, do it over, and rule another way this time–that’s what the Supremes are telling the lower court to do…
    Read More “PA Supremes Order Rehearing for Rex Permits Near Martian School”

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    Sunoco Fined $148K for ME2 Drilling that Fouled PA Water Wells

    At various points over the past year or so, Sunoco Logistics, in using underground horizontal directional drilling (HDD) for the Mariner East 2 pipeline project, has negatively affected some private water wells. A dozen private wells were affected by ME2 work in West Whiteland Township, in Chester County, last summer (see Sunoco LP’s Generous Deal to Chester Co. Residents with Water Issues). Sunoco made the situation right in West Whiteland, paying to extend a local municipal water line to the affected homes. But West Whiteland wasn’t the only location. There were others, in Berks County and Lebanon County. To the best of our knowledge, all of the water well issues have been corrected. But as always happens with these incidents, companies like Sunoco must pay twice. They pay (handsomely) to fix the issue–as they should. But then they pay a fine to the state. The fine for fouling water wells in three counties related to ME2 work was handed down yesterday by the Dept. of Environmental Protection. Sunoco has to pay $148,000 for violating PA’s Clean Streams Law and Dam Safety and Encroachment Act…
    Read More “Sunoco Fined $148K for ME2 Drilling that Fouled PA Water Wells”

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    Riverkeeper Too Late to Challenge Penn East Pipe Water Certificate

    In Feb. 2017, THE Delaware Riverkeeper filed a lawsuit challenging water permits issued by PA for the PennEast Pipeline (see PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP). Riverkeeper filed their challenge late, arguing it was confused over where to file the challenge–in federal or state court. Commonwealth Court told Riverkeeper nice try, but no cigar. Last Wednesday Commonwealth Court told Riverkeeper, “you’re too late.” The court said Riverkeeper’s “confusion” over where they should file is not justification for filing WAY past the deadline to challenge the permit. We doubt Riverkeeper even thought this particular lawsuit (one of dozens they’ve launched against PennEast) would bear fruit. This is just one more instance of Riverkeeper’s “throw it against the wall and see what sticks” legal strategy. This particular handful fell to the ground…
    Read More “Riverkeeper Too Late to Challenge Penn East Pipe Water Certificate”

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    Mariner East 2 Pipeline 99% Done, Online in ~2 Months

    With all of the negative news stories from mainstream media in Pennsylvania regarding the Mariner East 2 (ME2) Pipeline project, and the seemingly endless challenges by Philadelphia politicians in bed with Big Green groups to try and block the project, here’s a couple of facts to warm your heart, and give antis heartburn: (1) ME2 is now 99% done; (2) ME2 will most likely go online in the next two months–by the end of 3Q18. There will still be a few small areas where ME2 proper is not online in two months–locations near Philadelphia where there have been sinkhole problems. But Sunoco Logistics Partners (aka Energy Transfer), the builder, has a workaround–repurposing an out-of-service pipeline for a few months…
    Read More “Mariner East 2 Pipeline 99% Done, Online in ~2 Months”

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    Mariner East 2 Pipeline Protester Sentenced 2-6 Months in Jail

    Huntingdon County, PA landowner Ellen Gerhart, adamantly opposed to the Mariner East 2 pipeline being constructed across her land, had her day in court on Friday. Gerhart, as we recently reported, was accused of violating a 2017 court order preventing her from interfering with ME2 construction on her property. It was alleged that she continued to do so anyway, against a judge’s order, and on Friday, July 27 she was arrested and jailed (see Central PA Landowner Arrested, Jailed for Violating ME2 Court Order). A week later, on Friday, Aug. 3, Gerhart stood before the judge as evidence was presented (videos and testimony from pipeline workers) that showed Gerhart had indeed violated the order. So the judge sentenced her from two to six months in prison, plus a $2,000 fine. Which is sad, but necessary. We (still, so far) live in a society where flagrant violation of the law is punished. The judge said she caused a hazard for pipeline workers…
    Read More “Mariner East 2 Pipeline Protester Sentenced 2-6 Months in Jail”

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    Oilfield Serv. Co. Relocating Office & 200 People from WV to PA

    In early 2017, Baker Hughes (prior to GE buying them) spun off its North American shale fracking business (“pressure pumping”) into a new, standalone company called BJ Services (see 3 Parents Give Birth to New Fracking Co: BJ Services). The “new” company involved investments and assets contributed from both Goldman Sachs and CSL Capital Management, in addition to BH. BJ Services used to exist as a standalone company before it was purchased by, and merged into, Baker Hughes in 2009–for $5.5 billion. BJ remained its own separate division within BH, but then got spun out again, back into its own company. We know, a bit confusing. Here’s what you need to know. In March 2016, BH closed its BJ operation in Mill Hall (Clinton County), PA and moved it to Clarksburg (Harrison County), WV. Now the reverse is happening. BJ, the standalone company, announced it is closing the Clarksburg operation and relocating it back to Mill Hall, along with some 200 people…
    Read More “Oilfield Serv. Co. Relocating Office & 200 People from WV to PA”

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    PA PUC Allows ME2 Pipeline Work to Restart Near Philly

    The Pennsylvania Public Utility Commission (PUC) yesterday voted 3-2 to allow construction to resume on the Mariner East 2 and 2x pipelines in West Whiteland Township, Chester County (near Philadelphia), ending a weeks-long stoppage specific only to that area. The shutdown began in May after a PUC administrative law judge’s highly questionable ruling, which affected ME1, ME2 and ME2x (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). After an initial three-week shutdown, the PUC voted in June to approve the restart of ME1 (see PA PUC Overrules Lib Judge – Mariner East 1 Returns to Service). It was the second time in a little more than a month that the PUC voted to restart the line after finding it poses no risk. Work in West Whiteland Township for ME2 has been paused since the administrative law judge’s May ruling. With the PUC’s action yesterday, Sunoco can resume work on the project in Chester County. Although they can’t resume work on all of it. The vote yesterday does not lift the construction ban on four locations in West Whiteland waiting for new/revised permits from the state Dept. of Environmental Protection (DEP). Still, this is a big positive, and a major blow to antis who are not happy…
    Read More “PA PUC Allows ME2 Pipeline Work to Restart Near Philly”

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    PA Briggs “Rule of Capture” Case Turns on Concept of Drainage

    In April, MDN brought you the news that 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. Two of the three overturned the lower court and sided with the landowner. Southwestern, following that decision, petitioned the Superior Court to have all of the sitting justices (called en banc) hear the case. Sadly, in June the Superiors proved they aren’t so superior after all, declining to rehear the case (see PA Superior Court Rejects Southwestern “Briggs” Trespass Appeal). Southwestern then appealed the case to the PA Supreme Court in early July (see Southwestern Appeals “Briggs” Trespass Case to PA Supreme Court). No word yet on whether or not the Supremes will take the case. In the meantime, this case and its ultimate effect on drilling in PA and beyond is still a hot topic of discussion throughout the industry. We spotted two recent articles tackling it–one from a lawyer who does a great job of crystallizing the important elements in the case–that this case turns on the concept of drainage, and the other article which tackles the broader topic of how energy law in PA is charting its own path separate from Texas and other big oil/gas states…
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