Pennsylvania

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    New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy

    In February 2015, Philadelphia-based economic consulting firm Econsult Solutions released a study looking the potential economic impact of the Mariner East 1 & 2 projects, concluding the two project together would result in $4.2 billion coming to Pennsylvania (see New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA). However, projects like Mariner East change over time. Econsult revisited and revamped their original study to reflect those changes. Know what they found? ME1 & ME2 together will result in over $9 billion of economic impact in PA! How could it be that much? Just consider, the two projects together will have created 57,000 direct, indirect and induced jobs between 2014 and 2019 (9,500 jobs annually) with earnings of $2.7 billion impacting multiple industries. And that’s just the jobs piece of the puzzle! Although total economic impact will exceed $9 billion, the pipeline will continue to generate revenue for PA state coffers for years into the future, via taxes and by feeding the petrochemical industry in the Philadelphia area. It’s not $9B total–it’s $9B initially. Sadly, the PA Dept. of Environmental Protection last week halted all work on Mariner East 2, delaying the economic benefits of the project in PA (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). Let’s hope ME2 resumes work quickly. In the meantime, we have a copy of Econsult’s new report below, along with comments by antis who ignore the hard science in front of their faces that the Mariner pipelines are a bonanza for PA…
    Read More “New Study Says Mariner East 1 & 2 will Deliver $9B to PA Economy”

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    Minuteman Seeks Justice Against Kathleen Kane & PA AG’s Office

    One of the companies in the Marcellus industry targeted for extinction by Pennsylvania’s former Attorney General, Kathleen Kane, was Minuteman Environmental Services (see PA’s Anti-Drilling AG Charges Minuteman with Enviro Crimes). Minuteman was a Pennsylvania company serving the shale industry with several different businesses. In 2014, Kane orchestrated what can only be called a terror attack on Minuteman and its owner Brian Bolus and his family (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Kane’s vendetta against Minuteman was one of the most egregious examples of her abuse of power while she was AG. Kane’s attack on this small business literally drove it out of existence–they finally went bankrupt. One of the charges Kane used against the owner of the business, Brian Bolus, is that he illegally added his mom and dad to the health insurance plan for the company, even though they were not employees. Fantastically, Kane went after mom and dad, charging them with health care fraud! That charge, along with other charges, were dropped in 2016 (see Former PA AG Kathleen Kane’s Vendetta Against Marcellus Co Over). In fact, out of the original 83 charges (56 charges being felonies), 81 of the charges have been dropped. The final two charges–misdemeanors (barely above a traffic ticket in the pecking order), go to trial this month and will (hopefully) also be dropped. It has taken four, long, years for Bolus and Minuteman to be exonerated legally. During that time, Kane herself was tried and convicted for committing perjury–a felony–and removed from office (unrelated to the Marcellus industry). Kane and the AG’s office caused extreme harm to Brian Bolus and his family–reputationally, and economically. Nothing can ever make up for the years and loss of reputation and forcing a company to go bankrupt, throwing hundreds of people out of jobs. However, there is *something* can be done. Bolus has filed a lawsuit (copy below) against Kane and the AG’s office and some of the people in the AG’s office that maliciously targeted him and his company. He’s demanding a jury trial–to help right the extreme wrong that’s been done…
    Read More “Minuteman Seeks Justice Against Kathleen Kane & PA AG’s Office”

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    PA DEP Adopting New Rules for Gas Wells Located Near Coal Mines

    In December, the Pennsylvania Dept. of Environmental Protection (DEP) released “interim final technical guidance” (i.e., new regulations) for drilling Marcellus Shale natural gas wells in areas where there is longwall coal mining. Sometimes drillers want to lease and drill under coal mines. Since coal mines sink large holes in the ground, there are existing guidelines in place for how closely an oil/gas well can be drilled on or under a coal mine–guidelines put in place in 1957. As a result of legislation passed in 2011 called Act 2, a review was conducted to see if the standards for oil/gas drilling near coal mines might be modified, allowing such drilling to happen in conditions not currently allowed. A study was performed and in January 2017 the DEP rejected that study–preferring to keep a default ban on any drilling under coal mines for the time being (see PA DEP Rejects Revisions to Regs re Drilling Near Coal Mines). Since that time the DEP has continued to work on the issue and has now produced guidelines it thinks can safely allow shale drilling under coal mines, at least in certain circumstances. The DEP issued their interim final guidelines back in December and will accept public comment until Jan. 31 of this year. After that, the DEP will make final tweaks and slap a “done” sticker on it. We have a copy of the interim guidelines below, which may affect some of our shale drilling subscribers…
    Read More “PA DEP Adopting New Rules for Gas Wells Located Near Coal Mines”

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    Attorney for Anti Group CELDF Fined $52K for “Bad Faith”

    Tom Linzey, the attorney who founded and runs the Community Environmental Legal Defense Fund (CELDF), has just been sanctioned by Federal Judge Susan Paradise Baxter and ordered to pay $52,000 to Pennsylvania General Energy (PGE) for his “bad faith” in continuing to press legal arguments on behalf of Grant Township (Indiana County, PA)–legal arguments that say the people of Grant have rights they actually don’t have. Linzey has continued to claim rights for the citizens of Grant that have no legal basis and have been discredited in court. Not only that, but Judge Baxter also referred the matter to the Disciplinary Board of the Pennsylvania Supreme Court with a request that they review Linzey’s actions with an eye to imposing more punishments against him. We’ve previously reported on the story of two Pennsylvania towns that were either hoodwinked, or perhaps willing led astray, by the radical CELDF into passing (now overturned) bans on fracking and injection wells in their towns–Highland Twp (Elk County) and Grant Twp (Indiana County). The two townships thought they would do an end-run around the state’s authority to issue permits for two injection wells–one in each township, by re-incorporating under so-called home rule charters. The towns essentially declared themselves independent of the state for a variety of matters, including oil and gas permits, which PA state law clearly says is a function of ONLY the state Dept. of Environmental Protection. In March, the DEP issued final permits for the injection wells AND sued each town to get those portions of their home rule charters, dealing with oil and gas, overturned (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). Both towns eventually backed down (see 2 PA Townships Won’t Enforce “Home Rule” Against Injection Wells). However, in May, Grant’s attorneys (i.e. Linzey) filed a counter-claim against PA asking Commonwealth Court to recognize a sort-of extra-judicial set of rights the town can exercise over top of, or in addition to, state laws–instead of their previous position of trying to replace state laws (see CELDF Continues to Agitate Against Indiana, PA Injection Well). The company building the injection wells, PGE, has been economically harmed by the actions of the towns and attorney Linzey, and sued to recoup costs. This decision in part satisfies that lawsuit. The judge, in very strong language, is punishing Linzey for his continued, intentional abuse of the legal system. We note she is not punishing the towns but rather Linzey…
    Read More “Attorney for Anti Group CELDF Fined $52K for “Bad Faith””

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    Shale Wastewater Treatment Plant Planned for Potter County, PA

    A new shale wastewater treatment facility that works in tandem with a local sewage treatment plant may be on the way in Coudersport (Potter County), PA. Epiphany Water Solutions, via a subsidiary company called Epiphany Allegheny, filed for a permit to build a centralized water treatment facility in Coudersport in July 2017. The initial application with the Dept. of Environmental Protection (DEP) was deemed “incomplete”–so Epiphany filed again and this time the application was complete. The DEP will hold a Jan. 16 public hearing in Coudersport to gain local resident’s input on the facility. This is not the first we’ve heard of Epiphany. They were one of four winners of the Ben Franklin Institute’s Fifth Annual Shale Gas Innovation Contest in 2016 (see 4 Winners Bag $80K at 5th Annual Shale Gas Innovation Contest). Epiphany started life as a company with a mission to pioneer the use of solar technology to desalinate water so people in poor countries have safe drinking water. Laudable goal. However, Epiphany found they actually need to turn a profit and pay bills first–and their technology works equally well for the oil and gas industry. CONSOL Energy (now CNX Resources) was an early backer and user of their technology. JKLM Energy, owned by Buffalo “Marcellus” Bill’s owner Terry Pegula and with active drilling in Potter County, needs a better way to dispose of frack wastewater. So Pegula turned to Epiphany and Epiphany is working with the Coudersport Area Municipal Authority (CAMA) to make it happen…
    Read More “Shale Wastewater Treatment Plant Planned for Potter County, PA”

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    Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits

    Last year the pressure was intense to pass a severance tax in Pennsylvania to help fill a budget gap. The severance tax issue in PA is a political football–a promise made by current Gov. Tom Wolf to pay off teacher’s unions in Philadelphia for voting him into office. During the budget machinations, traitorous Republicans in the PA Senate caved to pressure and in July passed a budget bill that hikes taxes on lots of things, including a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). As part of the Senate’s misguided and mangled budget bill, Republicans slipped in fixes to the state Dept. of Environmental Protection’s chronic delays in issuing permits related to shale drilling (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). As we said at the time, the writing was already on the wall–Democrats would lobby to remove the DEP fix and leave the severance tax. The DEP fix (surprisingly) continued in further revisions to the budget plan–until October, when the DEP fixes came out (see Latest PA Budget Bill Drops Fix for Slow DEP Permit Reviews). Although the fix came out, the severance tax came out too and was never passed (thank God for small miracles). But problems remain for Marcellus drillers. Delays are long in the Keystone State when it comes to permits for shale wells. The problems need to get fixed. So PA House Rep. Greg Rothman (Republican from Cumberland County) has just introduced a standalone bill to fix the problem. Predictably, enviro nuts and Democrats are lining up to oppose the fix…
    Read More “Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits”

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    Finalists Announced for 2018 Northeast & 2018 Texas Oil & Gas Awards

    Once again Marcellus Drilling News is happy to partner with and support the Oil & Gas Awards, for 2018. The Awards boys have just released two lists of finalists–one for the Northeast Awards, being held March 1 in Pittsburgh; and one for the Texas Awards, being held March 7 in Houston. This year six of the entrants for the awards contracted with MDN editor Jim Willis to help them prepare their entries (both Northeast and Texas). It was a blast for Jim to dig in and understand more about the companies submitting an application for the awards–and to help them craft what we hope are winning entries! Jim worked with some true professionals from the companies entering the awards–it was a pleasure. Below is a list of the finalists in each region. Good luck!…
    Read More “Finalists Announced for 2018 Northeast & 2018 Texas Oil & Gas Awards”

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    Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?

    The news that the Pennsylvania Dept. of Environmental Protection (DEP) has suspended all construction work on the Mariner East 2 Pipeline project until further notice continues to reverberate (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). MDN has taken some heat for our implication that the main reason for the shutdown is pressure from radical Big Green groups. While we maintain our view is not incorrect, we also don’t want to leave the impression that there aren’t problems that need to be addressed with ME2 construction. There are. And the DEP is right to address them. What we DO take issue with is a complete shutdown of ALL construction. If the underground horizontal directional drilling (HDD) work is the primary issue, shut that down–but not all construction, including trench work. At any rate, we spotted a story about a landowner in Cumberland County who says his private water well was fouled when ME2 construction began–and it’s still not right. Below is his story as an example of what the DEP *should* be paying attention to…
    Read More “Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?”

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    Propane Prices in the Northeast & ME2 Pipeline

    A lot of the talk and chatter this week has been about the spike in the price of natural gas (see today’s lead story, NatGas Trading in NYC Hits $175/Mcf – Highest Ever Recorded!). The other hot topic of the week is the decision by the Pennsylvania Dept. of Environmental Protection (DEP) to temporarily suspend all construction work on the Mariner East 2 (ME2) Pipeline. What antis in the Philadelphia area don’t realize is that ME2 is vital to their own region and their own pocketbooks. Yesterday we brought you one take on why Philly residents are missing the boat in opposing ME2 (see It’s Time We Stop Missing the Point About the Mariner East Pipes). In that guest post, MDN friend Garland Thompson makes the salient point that jobs and the Philly economy are tied to petrochemicals and the NGLs that will flow through the Mariner East pipelines. Today we bring you another article about why ME2 is so vital to the Philly area: the cost of propane. One of the primary NGLs that will flow through ME2 is propane, used in a variety of applications, but particularly used in places where there are not natural gas pipelines to deliver gas to homes (like the various suburbs around Philly, the ones opposing ME2). Propane prices are going up because (a) much of the propane produced by Marcellus/Utica drillers goes by railcars to Kansas, where it catches a ride on a pipeline to the Gulf Coast, and (b) the propane that does come to the Philly area also comes via rail cars, at a much higher price than if it were shipped via pipeline. Add to that other countries want our propane and are bidding the price up–and you have a prescription for spiking propane prices around Philly. The article below delves into the business of propane, explaining terms you may have heard but don’t know what they mean–like “contango” and “backwardation.” Buckle up–here’s a deep dive into the economics of propane, and why Philadelphia desperately needs the ME2 pipeline–without delay…
    Read More “Propane Prices in the Northeast & ME2 Pipeline”

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    PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline

    We suppose it was bound to happen sooner or later. The Pennsylvania Dept. of Environmental Protection (DEP) has caved to intense pressure from a cabal of Big Green groups and has told Sunoco Logistics Partners to suspend all work on the $2.5 billion Mariner East 2 (ME2) NGL pipline–from one side of the state to the other. Just yesterday MDN told you about the mounting pressure on the DEP to halt ME2 work, particularly work on underground horizontal directional drilling (see Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat). The shrill voices of Democrat Gov. Tom Wolf’s left flank were so shrill he couldn’t ignore them any longer, hence this action. The DEP in its order said construction will be halted, “until Sunoco can demonstrate that the permit conditions can and will be followed.” So there’s no particular time frame for when Sunoco can resume work–it will be up to the arbitrary gut feeling of the DEP. However, DEP does offer some criteria for when construction may be able to resume. Work can resume IF Sunoco satisfies the terms outlined in DEP’s order, including, but not limited to: (1) Address all impacts to private water wells in Silver Spring Township, Cumberland County; (2) Identify all in-progress or upcoming construction activities and detail the specific Chapter 102 and Chapter 105 permit under which the activity is authorized; (3) Submit a detailed Operations Plan outlining additional measures and controls to minimize inadvertent returns. In essence, the DEP is saying Sunoco has willfully violated the permits (and previous settlement) in constructing ME2, and they (DEP) have had enough. The DEP’s action immediately throws thousands of pipeline workers out of jobs across the state–thank you Tom Wolf and DEP. Big Green groups, including the odious Clean Air Council of Philadelphia, pounced on the DEP announcement, saying the agency should not just suspend construction, but CANCEL it. That has been their aim all along. These pressure groups want to stop the ME2 project cold. End it. Kill it. Finish it off. The DEP isn’t ready to grant that particular wish–yet. However, the suspension is certainly not good news for the project nor for thousand of families who will now have to make do with unemployment checks…
    Read More “PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline”

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    It’s Time We Stop Missing the Point About the Mariner East Pipes

    Yesterday the Pennsylvania Dept. of Environmental Protection suspended all work on the Mariner East 2 NGL Pipeline project (see today’s lead story, PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). The project has been vigorously opposed by antis in the greater Philadelphia area from the beginning. Their opposition stems from a deeper philosophical preference to end the use of fossil fuels. Last September, MDN editor Jim Willis had the pleasure of meeting and talking with Garland Thompson at the Shale Insight event in Pittsburgh. Garland, who lives in Philly, has written for the Career Communications Group of publications, including US Black Engineer & Information Technology, Hispanic Engineer & IT, and their siblings Woman of Color and Science Spectrum, for many years. He’s covered the shale revolution for those publications since 2008–before MDN began writing about it! Jim had an interesting conversation with Garland, about the need to educate folks, particularly the folks in the greater Philly area, about the benefits of pipelines. Springboarding on yesterday’s news, Garland has written a great opinion piece pointing out that opposition to the Mariner East pipelines (plural) is misguided and shortsighted. Garland builds a case for why everyone in the Philly region should want to see these important projects get built…
    Read More “It’s Time We Stop Missing the Point About the Mariner East Pipes”

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    Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA

    In November MDN brought you details about a 100% FREE training program for those interested in a career building pipelines in the Marcellus/Utica region (see 4-Wk FREE Training Program Helps Unemployed Get M-U Pipeline Jobs). The first batch of students to successfully complete the training (classes held each Wednesday), graduate today! Following graduation is a job fair with potential employers who are ready, willing and eager to hire those new graduates. A next section of the 4-week program begins next Wednesday at Indiana University of Pennsylvania’s campus in the Northpointe Technology Center (Armstrong County, PA). Believe it or not (we don’t know how this can be true), there’s still a few open spots. Each section is limited to 20 students. If you are interested and live somewhere within driving distance of Armstrong County, what are you waiting for? We have the details of how to enroll for FREE in this training course–a course worth $3,500…
    Read More “Still a Few Openings for Free Training for M-U Pipeline Jobs in SWPA”

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    New Town Board Tries to Stop Nearly-Done Gas-Fired Plant in Jessup

    Just yesterday MDN warned you about a group of antis who had seized political control in the Pennsylvania borough of Jessup, where Invenergy is nearing completion of the state’s largest natural gas-fired electric generating plant (see PA’s Largest NatGas-Fired Elec Plant Near Scranton Nears Startup). True to form, no sooner than the antis were sworn in, they began to throw up roadblocks to completing the Lackawanna Energy Center project. As we explained yesterday, Invenergy has filed a request with Jessup to use the borough’s sewer system to dispose of up to 56,600 gallons of “wastewater” (heated water) per day. The first thing the new board did was to hire a radical, far-left attorney (who also represents the odious Delaware Riverkeeper) to “review” Invenergy’s request. It’s a total sham. Jessup’s new Council President, Gerald Crinella, lied through his teeth when he said, “What we’re looking to do is have an expert look at it and say, ‘What other options are available?’ What are the pros and cons of them? What are the costs associated with them?” The aim of hiring the Riverkeeper attorney is to STOP this project and has nothing to do with being extra careful. Council is supposed to vote by Jan. 15 on Invenergy’s request to use the sewer system in order for the project to remain on track. The yesterday decided to ask Invenergy to delay the Jan. 15 date–the classic first move antis always make. First delay, then deny. We predict a lawsuit will swiftly be filed by Invenergy, who will be ready to start the plant up in February…
    Read More “New Town Board Tries to Stop Nearly-Done Gas-Fired Plant in Jessup”

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    Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat

    Sunoco Logistics Partners continues to feel the heat over their construction of the Mariner East 2 (ME2) natural gas liquids (NGL) pipeline project. Most of the heat comes from underground horizontal directional drilling (HDD)–drilling holes to install pipelines under structures like roads and streams, in places where you can’t just dig a trench. The problem is that sometimes the mud used to cool the drill bit for HDD work “leaks” or disappears into cracks and crevices, and sometimes the drilling mud ends up coming back to the surface. It’s called an “inadvertent return.” Bear in mind that drilling mud is otherwise known as bentonite–a nontoxic clay mixture. Bentonite is the same chemical compound used to make kitty litter, toothpaste and all sorts of cosmetics. It’s totally safe for the environment–unless you spill a lot of it and smother little critters like salamanders and fishies. Several Big Green groups sued to stop ME2’s HDD work last year. In August, Sunoco “settled” that lawsuit. The terms of the “settlement” called for Sunoco to reevaluate and resubmit plans for HDD drilling at 47 locations for review by the Dept. of Environmental Protection (DEP). Since that time more spills have occurred, and keep occurring (see Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations). Sometimes a spill is a few gallons–literally a nothing, but it must be reported anyway. Sometimes a few hundred gallons gets spilled–again, not a threat to the environment. But sometimes the spills are in the thousands of gallons–and that does begin to be a problem. Because of the ongoing spills, a Big Green group (part of the original lawsuit) is now demanding the PA DEP shut down all further HDD work. They admit their aim is to “shut down the entire project”–not just HDD drilling. While the DEP isn’t ready for such a drastic measure, the DEP is turning up the heat on Sunoco. Here’s an update…
    Read More “Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat”

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    Murrysville PA Approves Dominion Plan to Expand Compressor Stn

    Dominion recently received an important approval from Murrysville, PA (Westmoreland County) Council to expand the existing JB Tonkin compressor station. The expansion is part of Dominion’s Supply Header Project, a $500 million project of approximately 38 miles of natural gas pipeline and modified existing compression facilities in West Virginia and Pennsylvania. The project will provide natural gas supplies to various customers, including (most importantly) the $5 billion Atlantic Coast Pipeline (ACP) Dominion plans to begin building this year. Some residents resisted the approval voicing concerns about noise. As part of the approval, Dominion agreed to conduct a post-construction noise survey, even though technically they don’t have to. Here’s an update on the Murrysville approval of this important piece of what ultimately will feed ACP…
    Read More “Murrysville PA Approves Dominion Plan to Expand Compressor Stn”

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    Chesapeake Agrees to $30M Royalty Settlement for PA Landowners

    Chesapeake Energy is holding out an olive branch to Pennsylvania landowners–the offer of settling a years-old class action lawsuit for $30 million–as reparations for shafting PA landowners out of royalties. But–and it’s a big but–Chesapeake is also snatching the olive branch away unless/until the PA Attorney General’s office resolves its separate lawsuit against Chesapeake for the same thing. No deal with the AG? No final settlement. Chesapeake’s lawyer calls it “global peace”–which we find amusing. The lawyer said “we need global peace,” meaning both lawsuits must be settled. His comment reminds us of the recent song blaring on the radio over the holidays called, “My Grown-Up Christmas List.” Yeah, don’t we all want “global peace.” Chesapeake’s proffered deal will give 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. Frankly, it’s chump change. The big concession by Chesapeake in the proposed deal is that it gives landowners the right to clarify the terms of their leases: “Every Chesapeake lessor will get to pick how their royalties are paid going forward.” Landowners can choose to continue letting Chesapeake market the gas outside of the region (theoretically for a higher price) but requiring the landowner to share in post-production expenses with Chessy as has been the case, OR landowners can rework the lease so there are no post-production expenses deducted. In the second case royalties will be based on the local price of gas in that landowner’s area (typically in the basement). It’s a tough decision. So, landowners got shafted in the past, but the past is the past. Going forward, let’s not get shafted any more. That’s what this proposed deal seems to boil down to. Oh, and throw in a few grand as the cherry on top. The billion dollar question is whether or not the AG’s office will go for it. The AG’s office is signaling it may settle, IF Chesapeake picks a number higher than $30 million as a settlement number…
    Read More “Chesapeake Agrees to $30M Royalty Settlement for PA Landowners”