Monroeville Responds to Court Challenge re Seismic Testing Ord
Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry and continues to display their hostility in court. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance was meant to hassle Huntley & Huntley (H&H), which had wanted to conduct seismic testing in two rural areas of the municipality. The contractor doing the seismic work for H&H, Geokinetics, took Monroeville Council to court over their punitive seismic ordinance (see Monroeville Seismic Testing Ordinance Challenged in Court). In the complaint, Geokinetics said, “Monroeville’s intransigence is not motivated by any legitimate concerns for the health and safety of its citizens, but rather by its council’s concerns about November elections.” Claiming seismic testing will “potentially have a profound impact upon the environment,” the solicitor for Monroeville filed a rebuttal on Monday. The municipality is fighting an injunction of their junk seismic ordinance with wild claims that tapping the ground will damage the environment…
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We chalk this one up as outrageous. The Pennsylvania Dept. of Environmental Protection (DEP) has just shut down further drilling for the Mariner East 2 Pipeline project at Snitz Creek in Lebanon County, PA–because of a “less than one gallon” spill of non-toxic drilling mud. Drilling mud is composed of bentonite–the same clay compound used in kitty litter, toothpaste and cosmetics. A spill of less than a gallon is NOTHING. It’s not even worth reporting. Yet Sunoco Logistics, the company drilling, was honest and reported the “inadvertent return” as it is called. And because Sunoco previously had another small spill at the same location, the DEP, bowing to pressure from radical environmental groups, has halted any further horizontal directional drilling (HDD) work at the Snitz Creek location. This is bizarre, but perhaps not unexpected. It all stems to a deal Sunoco made with the devil…
Texas-based Newpark Resources, a drilling fluids and specialty services company for the oil and gas industry, announced yesterday it is buying Well Service Group located in Robinson Township, near Pittsburgh, for $75 million. Well Service Group, a containment and well site service company, was founded in 2012 and has sold and serviced equipment for Newpark from the beginning. So it seems like a natural marriage. It is one company (Newpark) buying out one of its best distributors (Well Service Group). No word on potential layoffs due to the buyout, but we doubt there will be any. This is a relatively small deal as deals go in the oil patch…
A cabal of three, rabid, radical so-called environmental groups are once again trying to obstruct the legally-permitted Mariner East 2 (ME2) natural gas liquids pipeline project in Pennsylvania. Clean Air Council, THE Delaware Riverkeeper and the Mountain Watershed Association filed a motion with the PA Environmental Hearing Board, a special court set up to hear appeals of decisions made by the Dept. of Environmental Protection, to revoke permits previously issued by the DEP for the ME2 project–WITHOUT holding a trial. The groups are attempting to rush through a decision to block work on the pipeline by claiming there are “facts” in the case “not in dispute” and that the judge can simply take the reigns of justice into his own hands and rule by fiat. The heart of their case is that DEP granted federal water crossing permits for ME2 for “exceptional value” swamps, er, a, wetlands–and ya know, that just ain’t right. Even the attorney for the odious (and odoriferous) Clean Air Council says the judge won’t rule on the motion for at least two months–which is about the time the pipeline will be done anyway. So we’re not quite sure what these rabid groups hope to accomplish with their latest stunt. Perhaps it’s yet another fundraiser? The holidays are fast approaching…
An extensive article in the Pittsburgh Business Times calls attention to the developing shortage of qualified construction workers in southwest Pennsylvania. So far the need for workers has been met, but it’s not hard to predict that as Shell ramps up its “vertical construction” (building the buildings to house the cracker) this fall, that shortages will happen–not only for Shell’s project, but for other expansion projects in the area as well. Shell is the anchor. There are dozens (perhaps hundreds) of other businesses that will launch, relocate or expand to take advantage of Shell’s forthcoming supply of cheap plastics. All of those projects will create thousands of jobs in the construction industry. Various colleges and unions have launched training programs to meet the need for electricians, carpenters, iron workers, steamfitters, insulators and sheet metal workers. Question is, will it be enough?…
Cabot Oil & Gas, one of our favorite Marcellus drillers, released its third quarter 2017 update on Friday. Some of the things we learn from the report and the analyst phone call held by Cabot’s top brass: Production grew another 12% during 3Q17. In the Marcellus, Cabot’s natural gas production averaged just over 2 billion cubic feet per day gross (Bcf/d). If you use U.S. Energy Information Administration numbers from the most recent monthly drilling report, Cabot’s 2 Bcf/d equals 8% of all Marcellus production, and 3.3% of all shale gas production in the U.S! That’s truly amazing, considering it all comes from Susquehanna County (with a couple of wells in neighboring Wyoming County), in northeast PA. Profitability returned in 3Q17 with net income of $32 million, versus a net loss of $16.7 million in 3Q16. In the Marcellus, Cabot drilled and completed 13 net wells and placed online into production 15 net wells. They now have 49 “fourth generation” wells online and producing at an average of 4.4 Bcf per 1,000 feet. They also have 12 “fifth generation” wells online. One of the highlights for Cabot during 3Q17 was the announcement that Williams is now building their $3 billion, 198-mile Atlantic Sunrise natural gas pipeline project. Cabot says when the pipeline is done in mid-2018, Cabot will flow 1 Bcf/d of gas to new markets. Cha ching! New markets equal higher prices and more profitability for the company. Below is the full 3Q17 update, followed by remarks from CEO Dan Dinges made during the analyst call…
Sunoco Logistics has been slapped down in a ruling by the Pennsylvania Public Utility Service (PUC) with respect to a valve station, part of the Mariner East 2 (ME2) pipeline project. In March, MDN told you about an attempt by liberal anti-pipeliners in West Goshen (Chester County) to block the ME2 project (see 
For some reason Tom Wolf has successfully cultivated a public persona of a genteel, non-partisan businessman–from the very beginning of his race for the governor’s chair even through today. We weren’t fooled, but many were. He’s proven to be just what we thought he was: a vicious partisan liberal, a spoiled rich kid who grew up to be a spoiled rich adult. Someone who throws a fit when he doesn’t get his own way. The severance tax is a perfect example. From his first day in office, Wolf lobbied hard for a severance tax. Such a tax was thought to be an easy way to pour billions of dollars into “education.” It was Wolf’s quid pro quo with Philadelphia teacher’s unions. They voted him into office, and he would repay them with big money–getting it from an “easy mark”–the Marcellus industry. Turns out the industry wasn’t such an easy mark after all. It has been a long, bloody fight, but the fight (for this year) is now over and Wolf has lost, third year in a row, to get a severance tax passed. His anger bubbled over last week and Wolf revealed his true character. When asked about the budget process, Wolf’s office issued this statement about House Republicans, attributed to Wolf: their opposition to a severance tax “has revealed the worst of Harrisburg.” In other words, Wolf just called House Republicans, his principled opponents, “the worst of Harrisburg.” His comment is the political equivalent of a five year-old stomping his feet and throwing himself on the floor when he doesn’t get his own way. Thank God for House Republicans who held the line against this insane severance tax, and shame on Senate Republicans who turned traitor. Hopefully they’ve learned a lesson from their courageous House colleagues about holding the line…
Last week the University of Pennsylvania published “Pennsylvania’s Gas Decade,” a study looking at the impact of the Marcellus Shale on the state’s utility customers over a ten-year period, from 2007-2016 (full copy below). The study shows that on average, PA customers now pay 40% less for natural gas than they did ten years ago. The study also shows electricity customers are paying less–thanks to the Marcellus. Before Marcellus drilling began, PA produced 1% of the nation’s natural gas supplies. Today? PA produces 16% of our country’s natgas supplies. Thank you Marcellus! The study’s author predicts the trend toward lower natgas prices for PA residents will reverse–eventually. Why? The Federal Energy Regulatory Commission has approved a staggering 53 interstate pipeline projects that cross PA (more than twice that of any other state). Once/if those projects are built, more gas will flow out of the state, meaning prices for gas will rise. Hey, drillers aren’t sticking around in PA just to break even or lose money. They are in the state to make money, and part of making money is getting the gas to other markets. In the meantime, before the plethora of pipelines are built, PA residents should enjoy the low prices they’re paying…
This is the perfect illustration of how parts of state government, like the so-called Environmental Justice division of the Pennsylvania Dept. of Environmental Protection (DEP), get co-opted by Big Green groups. In 2015 then-Secretary of the DEP, John Quigley, “reactivated” the Office of Environmental Justice at the DEP to give poor folks and minorities an important new weapon to oppose shale drilling (see 
The Pennsylvania legislature has spoken. The PA Senate and House have now sent all three budget-related bills to liberal Gov. Tom Wolf for his signature. In the end, severance tax proponents, including traitorous Republicans in the Senate (and House), could not ramrod through a new, punishing tax on the Marcellus industry–on top of the many taxes the industry already pays. RINOsaur Gene DiGirolamo could not get his 3.2% severance tax bill passed in time for this year’s budget–but it hangs out there like a zombie, not quite ready to die, just yet (see 
While Pennsylvania legislators and PA Gov. Tom Wolf work to finish up the four-month-late state budget, the issue of whether or not to enact a severance tax to help pay for Harrisburg’s wild overspending is still alive. We think it’s mostly dead, but the severance tax keeps coming back to life like a zombie in a B horror flick. The latest incarnation comes from a Republican in Name Only (RINO), Gene DiGirolamo, a Philadelphia area member of the PA House. As we previously reported, DiGirolamo’s House Bill (HB) 1401 would slap a 3.2% severance tax on top of the existing impact tax, which is the equivalent of a 5%+ severance tax already (see 
Yesterday MDN told you about two different environmental “riders” snuck into the Pennsylvania Fiscal Code bill that is part of the annual state budget (now four months late). The riders have nothing to do with the budget or raising revenue. It’s a sleazy political ploy to pass unpopular measures that wouldn’t get passed on a standalone vote. One of the riders changes the terms of existing leases by allowing drillers to reactivate old/expired leases, either by restarting production or by drilling a new well if the landowner doesn’t object within 90 days of notification (see 
Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see