Pennsylvania

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    FERC Rejects Antis’ Request to “Rehear” Atlantic Sunrise Decision

    In March of this year, a variety of anti-fossil fuel Big Green groups filed a rehearing request with the Federal Energy Regulatory Commission (FERC), asking the agency to reconsider its decision to approve the Atlantic Sunrise Pipeline project (see Antis Attempt to Stop Atlantic Sunrise Pipe by Attacking FERC Order). Atlantic Sunrise is a $3 billion, 198-mile natural gas 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. Before Big Green groups can sue FERC in federal court to try and stop a project, they must first file a request for rehearing. If the antis can get FERC to agree to a re-hearing, it effectively slows, even stops, an active pipeline project. So in an effort to prevent important projects from being slowed or stopped, FERC developed something called a “tolling order” which grants FERC more time to consider whether or not a full rehearing is justified. During the time of the tolling order, work on a pipeline continues. Sometimes the work even gets completed! Which of course drives antis bonkers. By using a tolling order, FERC can drag out the process of deciding to deny a rehearing, avoiding the inevitable frivolous lawsuit that follows. That is, work on important projects actually gets done. Even though a tolling order was in place for the Atlantic Sunrise decision, antis still sued in federal court (several times, for a myriad of reasons), in an attempt to stop Atlantic Sunrise. It hasn’t worked. Construction is going strong. Last week FERC finally responded to the original request for a rehearing lodged back in March. FERC denied the request. When you read through FERC’s response, you’ll find many of the people and groups who requested a rehearing didn’t follow the rules and were simply dismissed as not having standing in the case. For those who do/did have standing, FERC methodically, meticulously, patiently explained why they are full of it…
    Read More “FERC Rejects Antis’ Request to “Rehear” Atlantic Sunrise Decision”

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    PA Landowners: Don’t Cash that Surprise Royalty Check Just Yet

    Pennsylvania landowners may think Christmas came early this year. Perhaps you’re a landowner and just received a surprise royalty check in the mail for a long-dormant well on your property. That well hasn’t produced in what seems like forever. Last time you got a royalty check was what…maybe 10 years ago? And look at this! Santa just visited! After all that time the driller decided to pump some more from that old well. But before you run to the bank and cash the check, thinking you can pay for more Christmas presents, better think twice. Or three times. You may about to be taken for ride. In July the Pennsylvania Senate passed an awful budget bill that includes a variety of new taxes, including a new severance tax on the Marcellus industry. The Senate also slipped in Section 1610 into the budget bill, which changes established lease law with respect to oil and gas wells that no longer produce anything (see PA Senate Slips Anti-Landowner Measure into State Budget Bill). Under then-existing law, when an oil or gas well stops producing–and the landowner quits getting royalty checks–the lease is considered terminated. Done. Finished. Under new Section 1610, drillers can resurrect those dead leases under a couple of conditions. If the landowner doesn’t officially declare “your lease is now dead since you’re not producing anything” a driller can quick-like-a-bunny restart production at the well and send the landowner a piddly royalty check, re-starting (or continuing) the existing lease with its existing terms. Or if the driller sends a notice to the landowner stating its intention to drill a new well on the property, and if the landowner doesn’t object within a 3-month time limit, the driller is free to begin drilling a NEW well, under the OLD lease terms. Section 1610 really stinks. Landowners are shafted out the opportunity to sign new leases with new bonuses and better royalty rates. Fortunately the severance tax didn’t make the final cut in the budget bill. Unfortunately Section 1610 did make it–and is now PA law. If you get a royalty check “out of the blue” for a long-dormant well, head for a lawyer, quick, BEFORE you cash that check…
    Read More “PA Landowners: Don’t Cash that Surprise Royalty Check Just Yet”

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    NYU Buying Frivolous Enviro Lawsuits by Hiring Lawyers for State AGs

    Somebody needs to sue the New York University (NYU) School of Law and 10 state Attorneys General to stop a grievous practice–a bastardization of our justice system. We are floored to learn that NYU is paying to hire attorneys to work inside the offices of the Attorneys General in 10 different states–Pennsylvania being the latest. The aim of hiring these new assistants to work alongside AGs is to launch lawsuits to “protect” the environment–i.e. sue fossil fuel companies. It is a gross perversion of our legal system meant to challenge policies the very liberal NYU doesn’t like. Our legal system is now, apparently, for sale–at least it is in PA and nine other blue Democrat-controlled states. THIS MUST STOP. NOW. Since when does private money get to buy state workers? Since when does private money with VERY long strings attached get to determine how and what state workers will work on? This is wrong in so many ways. And probably illegal, which the NYU School of Law should know. If it’s not illegal (big if), at a minimum it’s grossly unethical. Paging U.S. Attorney General Jeff Sessions: You need to stop this–now!…
    Read More “NYU Buying Frivolous Enviro Lawsuits by Hiring Lawyers for State AGs”

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    E Goshen Twp Asks PA to Step in and Authorize Anarchy re Pipelines

    A township supervisor in East Goshen (Chester County), PA doesn’t like a pipeline coming through a portion of his township. So he’s asking PA Gov. Tom Wolf and state legislators to overturn 200+ years of law in the United States to empower him to either prohibit the pipeline from coming through his town, or drastically alter its course (making it unfeasible). Apparently Supervisor Marty Shane missed an important civics lesson in his elementary school social studies class. (Maybe he was taught in a Philadelphia school–that would explain it.) Mr. Shane wants municipal ordinances to supersede state and national regulations when it comes to pipelines. That is, he wants to reverse the way the law has worked for over 200 years–which is federal on top, then state, then local. Apparently Mr. Shane wants to grant his local fiefdom the same powers as (in this case) the state government. What Shane advocates, perhaps without realizing it, is a path to anarchy–where mobs of people determine what happens. The ultimate end of that is Lord of the Flies (read it sometime). Our founders, who (ironically) met in Philadelphia, crafted a system that created the single greatest country on earth. We the people elect representatives to represent us (called a republic, NOT a straight up democracy). Mobs do not make good decisions and our founders knew it. Under the U.S. Constitution, the federal government reigns over all. Then the state. And finally, local governments. The federal government reserves the right, under laws and statutes, to regulate interstate pipelines–precisely to prevent small-minded people from blocking them. After the feds come the states, who regulate oil and gas activity, and any pipelines not regulated by the feds (which covers the pipeline going through East Goshen). Local governments can and do pass ordinances on land use–but not ordinances that supersede the power of the state or the feds to site and regulate pipelines. Shane wants to reverse the order…
    Read More “E Goshen Twp Asks PA to Step in and Authorize Anarchy re Pipelines”

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    Enviros Tell DRBC Not Enough Freak Shows Scheduled on Frack Ban

    In September, MDN told you that the obsequious members of the Delaware River Basin Commission (DRBC) had slavishly obeyed their radical environmental masters by voting to move forward with a permanent ban on fracking in the Delaware River Basin (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The final ban language/regulation was dropped like a bomb by DRBC staff on Nov. 30 (see DRBC Drops Permanent Frack Ban Bomb – Public Hearings in January). In dropping their bomb, the DRBC said (with no proof) that fracking “poses significant, immediate and long-term risks” to the waters in the basin. Then they declared, by fiat, that “High volume hydraulic fracturing in hydrocarbon bearing rock formations is prohibited within the Delaware River Basin.” However, they also said (in the fine print) that water from the Delaware River Basin can be used by frackers in other locations–which sent antis like THE Delaware Riverkeeper into apoplectic shock. The DRBC is allowing public comment, via written communication, through Feb. 28. They will also hold four public hearings (i.e. freak shows) to allow antis to parade before the microphones and make jerks of themselves. We know what we’re speaking about–we’ve been to a number of similar hearings and can attest, first-hand, to how they behave during these hearings. Even though the public has a full 90 days to provide written comment, and four hearings in which to sound off–that’s still not enough for the nutters. They want the deadline for public comment extended and more freak shows to be added to the lineup…
    Read More “Enviros Tell DRBC Not Enough Freak Shows Scheduled on Frack Ban”

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    New Study Shows NO Link Between Marcellus & PA Mortality Rates

    An important research report has just been released that shows no connection between Marcellus Shale drilling and death (i.e. mortality) rates in Pennsylvania. Since the dawn of shale fracking, antis have made wild claims about fracking leading to low birth weights, asthma, and early death for those who live near active shale drilling operations. This study (full copy below) refutes that junk science–by using real data and real facts. Energy in Depth (an industry group) sponsored the research, but they hired an independent researcher to do the work. Hey, if we don’t pay for real research, it won’t get done! The independent researcher analyzed Pennsylvania Department of Health data for the state as a whole and the counties of Bradford, Greene, Lycoming, Susquehanna, Tioga, and Washington from 2000 to 2014. The data shows mortality rates in those six PA counties (which happen to be the counties with the most Marcellus Shale development) have declined or remained stable since shale production began in the region. In fact, the top Marcellus counties experienced declines in mortality rates in most of the indices. This is yet more proof that natural gas is not only good for the environment, it’s good for humans too…
    Read More “New Study Shows NO Link Between Marcellus & PA Mortality Rates”

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    Baker Hughes Nov Rig Count – US & Marc/Utica Counts Go Down

    The International (non-U.S.) Baker Hughes rig count for November 2017 was 942, down 9 from the 951 counted in October 2017, but up 17 from the 925 counted in November 2016. The U.S. rig count for November 2017 was 911, down 11 from the 922 counted in October 2017, but up 331 from the 580 counted in November 2016. The average Canadian rig count for November 2017 was 204, unchanged from the 204 counted in October 2017, and up 31 from the 173 counted in November 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig (second month in a row PA has lost a rig), running an average of 31 rigs during October. Ohio gained a rig to run an average of 30 rigs. West Virginia saw the biggest swing–a huge swing–by losing 3 rigs, running an average of 12 rigs last month. So the Marcellus/Utica combined lost 3 rigs last month. Here’s the BH update…
    Read More “Baker Hughes Nov Rig Count – US & Marc/Utica Counts Go Down”

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    Eclipse Buys 44.5K “Core” Utica Acres for $93.7M…in Central PA!

    Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, drills almost exclusively in the Ohio Utica. That is, until now! Yesterday Eclipse announced it has purchased 44,500 acres of oil and gas leases and producing wells in Tioga and Potter counties in north central Pennsylvania for $93.7 million–which works out to be ~$1,900/acre (very low cost). The aim of the purchase is to drill in the Pennsylvania Utica Shale. For the past few years MDN has heard about/highlighted stories of drillers going after the Utica Shale in PA–particularly in Tioga County (see Another Impressive Utica Well Pops Up…in Pennsylvania!). Eclipse cut a deal to buy the land and wells from Travis Peak Resources. We wrote about Travis Peak in December 2015 (see The 411 on New Driller Firing Up Rig in Tioga County, PA). Travis Peak, based in Austin, TX, was founded in November 2013 by a group of experienced guys who previously worked for companies like Amoco, Exxon, Pioneer Natural Resources and Newfield Exploration. A small company consisting of industry pros with financial backing from EnCap Investments. The best part of this deal for Eclipse? No money changed hands. Eclipse issued shares of stock in the company in return for picking up the acreage/wells. Also part of yesterday’s announcement by Eclipse is that they have picked up “outstanding equity interests” in small Marcellus/Utica pipeline company Cardinal Holdings–paying $18.3 million in cash. We have the full announcement below, a copy of the Eclipse presentation with lots of pretty maps and charts, and commentary about the Eclipse purchase…
    Read More “Eclipse Buys 44.5K “Core” Utica Acres for $93.7M…in Central PA!”

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    Banpu/Kalnin Buys 5,289 Ac & 35 Wells in NEPA Marcellus for $105M

    Banpu Pcl, Thailand’s largest coal producer, in cooperation with their American-based partner Kalnin Ventures, has just snapped up their sixth piece of the Marcellus Shale–once again in northeast Pennsylvania. Kalnin announced this morning they have cut a deal, using $105 million of Banpu’s money, to buy an unspecified amount of Marcellus acreage and 35 producing shale wells in Wyoming County, PA from Warren Resources. Based on a previous Kalnin story, yesterday’s announcement, and the Warren Resources website, MDN believes the total acreage involved is 5,289 net acres (6,982 gross). Which doesn’t seem like much. But you have to view the purchase in context. That $105 million paid is mostly for the producing 35 wells (roughly $3M per well). Plus, the acreage is no doubt adjacent to previous acreage and wells Kalnin/Banpu bought in Wyoming County back in May (see Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA). It was just last week we spotted and highlighted a story that quotes Banpu’s CEO Somruedee Chaimongkol as saying her company is considering “putting more money on top of the $500 million” already committed for shale gas purchases in the Marcellus (see Thailand’s Banpu Looking to Invest More Money in NEPA Marcellus). The “considering” period didn’t last long! This sixth investment now puts Banpu’s investment stake in the NEPA Marcellus at $522 million, with no end in sight…
    Read More “Banpu/Kalnin Buys 5,289 Ac & 35 Wells in NEPA Marcellus for $105M”

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    Cabot O&G Asks Judge to Make Dimock Anti Pay for Extortion, Slander

    Cabot Oil & Gas is tired of being sued, and slandered, by people like Dimock resident Ray Kemble and his ambulance-chasing lawyers. So in August Cabot sued back–for $5 million (see Cabot O&G Countersues Dimock Anti, Lawyers). Kemble lives in Dimock Township, in Susquehanna County, PA. Kemble and other families claimed Cabot’s drilling in the area (10 years ago) caused problems with their water wells–a claim strongly refuted by Cabot.
    Read More “Cabot O&G Asks Judge to Make Dimock Anti Pay for Extortion, Slander”

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    Plum, PA Passes Ordinance to Allow Fracking – Antis Livid

    In October, local officials in Plum, PA (Allegheny County) approved a plan by Huntley & Huntley (H&H) to drill a series of Marcellus wells on a single well pad in their municipality (see Plum, PA Gives Huntley & Huntley Green Light for Shale Drilling). Plum’s leaders got blowback from some residents (antis) over their decision to conditionally approve H&H’s request. In Plum, fracking is allowed in any zone if a conditional use is granted. That’s what happened in October–the Plum Council issued a conditional use exception for H&H to drill on 92 acres near Coxcomb Hill Road in Plum. To avoid dealing with more such conditional cases, Plum Council cooked up proposed changes to zoning ordinances (ordinances which haven’t been updated since 1993) that will only allow fracking in rural residential and industrial zones (see Plum, PA Officials Hold Hearing on New Restrictions for Fracking). At the time, H&H said the changes would be too restrictive. However, they appear to have adopted the “half a loaf is better than no loaf” philosophy, opting to support the new rules. Yesterday Plum Council moved ahead and adopted the new rules. Antis blew a gasket. They think the new rules are still too lenient because it allows drilling in rural residential areas. One mouthy anti planted herself in front of the microphone yesterday and refused to move, threatening to sue everyone and everything related to the vote “if my family, my property, myself is damaged in any way.” Whatever. Here’s what went down yesterday in Plum…
    Read More “Plum, PA Passes Ordinance to Allow Fracking – Antis Livid”

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    Post-Gazette Editors Show Total Ignorance re Severance Tax

    The lefty propagandists, who refer to themselves as “editors” of the Pittsburgh Post-Gazette, are at it again. Last Friday they ran an editorial calling out State Rep. Eli Evankovich, a Republican from Murrysville, saying he should be “ashamed of himself.” Why? Did he secretly use false personas of his own constituents to attack the oil and gas industry? No, that was State Rep. Jesse White, whom the Post-Gazette “editors” were strangely silent about (see PA Rep. White Says Fake IDs were “Error in Judgment”). Rep. Evankovich’s transgression is that he offered an amendment to the insane severance tax bill being considered in the PA House, HB 1401. Evankovich’s amendment would require natural gas utilities to add a line item in the gas bill consumers get in the mail each month. The line would have the names of the governor and the local representatives who voted for the severance tax, along with the portion of the gas bill that goes to pay for the tax. Heresy! Off with his head! You NEVER actually tell the hoi polloi, the common people, the truth! That’s just not done. And so the editors of the Post-Gazette want to shame (better yet vote out of office) Evankovich for daring to throw this disgusting tax–all of which will go to Philadelphia teachers to repay them for voting for Wolf–right back in their leftist faces. Unfortunately Evankovich’s amendment was voted down…
    Read More “Post-Gazette Editors Show Total Ignorance re Severance Tax”

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    PA Severance Tax Bill Continues to be Blocked by Republicans

    Did you know there is major news this week about the proposed Pennsylvania severance tax bill, House Bill (HB) 1401? No, you won’t read anything about what has happened with the bill this week, since the return of the PA House, in mainstream media. Why? Because mainstream media refuses to actually report news any more. They only pedal advocacy. HB 1401 continues to be blocked by courageous House Republicans, even though a variety of amendments have been raised and there was more floor debate on the bill–this week. The bill’s failure to garner a vote and the increasing likelihood it won’t, doesn’t fit mainstream media’s “this tax is inevitable” narrative. Go ahead–do a news search. Nothing in the Harrisburg Patriot-News (the “record” of what happens in the state legislature). Nothing in the Pittsburgh Post-Gazette, a reliable anti-drilling screed. Nothing in the Philadelphia Inquirer (is Andrew Maykuth on vacation?). And yet, there IS major news! The only source we could find to inform us of what’s happening is the leftist, Big Green former Secretary of the state Dept. of Environmental Protection, writing on a blog site. Our hat is off to David Hess for his willingness to do the job no one else will do, bringing us the blow by blow of what’s happening with HB 1401…
    Read More “PA Severance Tax Bill Continues to be Blocked by Republicans”

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    Report: PA Natural Gas Production Hits All-Time High in 3Q17

    It continues to be a banner year for natural gas production in Pennsylvania, going by the latest quarterly production report. Yesterday, the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Jul-Sep 2017 (full copy below). It shows natgas production rose 4.8% compared to the same period last year. It also shows the number of producing wells is up 9.3% from last year. Total natural gas production volume was 1,326.2 billion cubic feet (Bcf) and the number of producing wells in 3Q17 was 8,073. The biggest news is that 3Q17 saw the highest quarterly production of natural gas in the state–ever. The previous quarterly report had been the highest ever until this report came out (see PA 2Q NatGas Production Report – Another New Record). The #1 county for natgas production in 3Q17 was, as it was was in 2Q17, Susquehanna County. The #1 producing driller in Susquehanna County is Cabot. As we pointed out in our remarks with the last quarterly report, you might say–with some justification–that the success of Cabot’s drilling program in Susquehanna County has translated into huge success for all of Pennsylvania. Let’s dive into the full report…
    Read More “Report: PA Natural Gas Production Hits All-Time High in 3Q17”

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    Antis Target PA Gov Wolf Aide as Payback, Husband Works for EQT

    We find this particularly loathsome. A Big Green supporter and far-left radical environmentalist who lives in Chester County, PA, Caroline Hughes, has filed a complaint with the Pennsylvania State Ethics Commission against PA Gov. Tom Wolf’s deputy chief of staff, Yesenia Bane. The complaint is a ginned up allegation that Bane “was regularly involved in meetings and travel related to her husband’s natural gas industry clients.” The so-called evidence comes from a copy of Bane’s travel schedule in 2016. She attended various shale meetings and conferences, on behalf of Gov. Wolf, and because she did so, Ms. Hughes would like to see Ms. Bane lose her job. Nice people those antis. Hughes makes the baseless charge that because Bane attended meetings where Bane’s husband, first a lobbyist for the shale industry and now an employee of EQT, had clients, her mere presence at such meetings constitutes a “conflict of interest.” Why? Because Bane’s presence somehow “benefits” her husband and his business. There’s no allegation of back room dealings or financial benefit from those meetings. No. Just a wild accusation, targeting someone because her husband has the gall to work for the shale industry. But that’s not all. Ms. Bane had the gall to remove a anti-pipeline radical from the Wolf Pipeline Task Force back in 2015. That little episode is mentioned in the same Big Green story as the charge that Bane had a conflict of interest. In other words, the conflict of interest charge is a ruse. This is payback for Bane’s action in removing the anti from the Task Force…
    Read More “Antis Target PA Gov Wolf Aide as Payback, Husband Works for EQT”

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    PA DEP Issues Air Permit for Gas-fired Elec Plant Next to Pot Farm

    In early October MDN told you about a second Marcellus gas-fired electric generating plant being planned for Greene County, PA (see 2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA). Hill Top Energy Center, based in Huntington Bay, N.Y., is planning to build a 620 megawatt plant (original story had it wrong, saying 536 MW) on 41 acres of land off Thomas Road in Cumberland Township. The PA Dept. of Environmental Protection (DEP) held a public hearing in early November about the project. Only 20 people turned up and nobody objected. Last Friday the DEP issued an air quality permit for the project–the last major hurdle before the project can begin. In press coverage of the permit and the project advancing, we discovered one piece of new information: The plant will be built next door to a “medical marijuana operation”–i.e., a pot growing farm. Well now that’s interesting! Workers at the new electric plant can slip out the back door on break and roll a joint for later…
    Read More “PA DEP Issues Air Permit for Gas-fired Elec Plant Next to Pot Farm”