Pennsylvania

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    Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations

    Sunoco Logistics Partners (part of and owned by Energy Transfer Partners) has had its fair share of “inadvertent returns” (i.e. leaks of drilling mud) while drilling underground for the Mariner East 2 pipeline project that stretches across the width of Pennsylvania. Some would say Sunoco has had more than its fair share of mud spills. Bear in mind that drilling mud is otherwise known as bentonite–the nontoxic clay mixture used to cool the drill bit as it chews away underground. 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. When installing a pipeline, you don’t just dig a trench across a roadway or dam up a creek or river. Instead, you use horizontal directional drilling (HDD) to dig under it. ME2 is some 350 miles long, so there are a number of places where HDD must be used. There are always small drilling mud spills, or inadvertent returns, associated with HDD work. However, Sunoco has had, at last count, 96 such instances (see the list below). Antis seek to make the most of each and everyone spill episode. The most recent such spill is associated with a sink hole believe caused by HDD drilling in Delaware County last week (see ME2 Drilling in Delaware Co. Creates Small Sinkhole, Antis Swarm). The PA Dept. of Environmental Protection (DEP) sent a notice of violation for last week’s mud spill (see it below). DEP officials admit they are somewhat overwhelmed with trying to keep an eye on the project and are considering “additional enforcement” actions against Sunoco LP for ME2…
    Read More “Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations”

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    Paid Agitators Shut Down Traffic at Energy Co Offices Near Pittsburgh

    One of the crazies protesting in front of Southpointe

    Hey, it’s Thanksgiving break, woo hoo! Time for brainwashed college kids to break the law and claim they’re doing their civic duty by shutting down traffic in front of “evil” companies that are part of the Marcellus industry. A lawless mob of perhaps two dozen maleducated young people along with some old hippies (most of whom were from out-of-state, i.e. paid agitators) set up roadblocks and other elaborate structures in front of the Southpointe business park in Washington County, PA, near Pittsburgh. A variety of Marcellus-related companies have offices in Southpointe, including Range Resources, CONSOL Energy, Halliburton, and Chesapeake Energy. The malcontents’ complaint? They have a psychological disorder in which they irrationally hate fossil fuels, and by extension, those who extract and sell them. Even though the clothes on their bodies and the sneakers on their feet come from fossil fuels. And even though they woke up in homes and apartments heated by fossil fuels. And even though they arrived at the protest in vehicles powered by fossil fuels. And even though the signs they made and carried were made from fossil fuels. Yeah, totally nutso. The lawlessness went on for about four hours before local police finally ejected the last of the nutters. They had a chance to make their statement and disrupt legitimate, salary-paying and valued businesses for a while, all in the name of anarchy and mob rule–driven by abject hatred. We often wonder if this is how it felt during the rise of the Nazi Party in the 1920s…
    Read More “Paid Agitators Shut Down Traffic at Energy Co Offices Near Pittsburgh”

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    PA Class Action Royalty Lawsuit Against XTO Settles for $11M

    A journey which began for Pennsylvania landowners in Butler County, PA in July 2015 is nearing an end. Two Butler County, PA landowners with a combined 245.7 acres of land leased to XTO Energy sued XTO in 2015 claiming that XTO is breaking the lease agreement by paying royalties below 1/8 of what XTO receives in revenue for the gas (see PA Landowners Sue XTO Energy for Shorting Them on Royalties). The case, known as Marburger et al V. XTO Energy Inc., asserted the lease signed with landowners did not include language that would allow XTO to deduct post-production charges (that they had been deducting). The two landowning families that launched the lawsuit, the Marburgers and the Thieles, sought to turn the lawsuit into a class action, involving potentially hundreds or thousands of others. It didn’t take long for XTO to oppose the lawsuit and its certification as a class action (see XTO Files Motion to Dismiss Royalty Lawsuit in Butler County, PA). Since that time we’ve not heard much of anything about the lawsuit. And then out the blue comes word that via arbitration, XTO has agreed to settle the lawsuit. The settlement includes turning it into a class action, and paying out a total of $11,010,000. As part of the settlement, XTO admits to nothing. That is, they do not concede the plantiffs have a valid case against them. It’s simply cheaper to settle it and move on rather than to keep fighting. Below we have the relevant court documents with the details of the settlement…
    Read More “PA Class Action Royalty Lawsuit Against XTO Settles for $11M”

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    Smith Twp Votes Down Plan to Expand MAX Bulger Marcellus Landfill

    In a disappointing development, the supervisors of Smith Township (Washington County), PA have voted to turn down MAX Environmental’s request to expand the Bulger landfill they operate in the town (see Marcellus Landfill in Washington Co. Seeks to Expand, Add TENORM). One of the primary customers for the landfill over the past 10 years has been the Marcellus industry–dumping drill cuttings (leftover dirt and rock from drilling) at the landfill. MAX intends to ask the PA Dept. of Environmental Protection for a permit to expand the Bulger facility by 21 acres. They also want to begin accepting technologically enhanced naturally occurring radioactive materials, or TENORM, from shale drillers. The first stop is, however, is to get local approval. The DEP wants to see local approval before they consider a state approval. Until now, the word coming from the supervisors is that they were duty-bound to approve the request, as long as “reasonable conditions” were made in the request. The town held several public hearings about the project. Apparently some local loudmouths got to the supervisors and spooked them. At a meeting last Thursday night the supervisors voted 3-0 against approving the request. MAX said they will wait to get the official document, expected today, before deciding on whether or not to litigate (an almost certainty)…
    Read More “Smith Twp Votes Down Plan to Expand MAX Bulger Marcellus Landfill”

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    Atlantic Sunrise Pipe Begins Work in Northumberland County, PA

    Good news for Northumberland County: Atlantic Sunrise is rising in your neighborhood. Work on the $3 billion, 198-mile natural gas pipeline project that will run through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County has begun in Northumberland County. Last week a Williams subcontractor working on that portion of the project gave a tour to a local newspaper. Atlantic Sunrise will pass through approximately 10 miles of Northumberland County, entering from Columbia County and exiting to Schuylkill County. So far, “Everything seems to be going really well” according to the contractor in charge of that portion of the project. They expect to begin welding pipes together by the end of this month…
    Read More “Atlantic Sunrise Pipe Begins Work in Northumberland County, PA”

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    5 More Protesters Arrested in Lancaster Co. Blocking Pipeline Work

    Five more members of the nutty Lancaster Against Pipelines group have been arrested, including a minor. It’s bad enough putting your own life at risk. We consider it child abuse to put your child’s life in danger by sitting the kid down in front of heavy equipment–in a deluded attempt to stop construction. Just last week we told you about three old ladies who did the same thing (see 3 Old Ladies Cause 3 Hr Delay in Atlantic Sunrise Construction). The latest five were arrested in the same general vicinity as the three old ladies–Martic Township. The five were arrested for sitting down in front of a working backhoe. No doubt they were imagining old Captain Planet episodes in their minds as they did so. You know, the Saturday morning cartoon from decades ago where defenseless kids go up against evil big corporations whose only goal is to destroy Mom Earth? All’s lost until the kids combine their “powers” and magically transform into Captain Planet (Planet…Planet…Planet). Did you hear that echo? At any rate, this latest small group didn’t hold up the works as long as the old ladies did, which is good. The grand total of protesters arrested now stands at 45–quite a few less than the “over a thousand” who supposedly had signed up to sacrifice themselves in front of pipeline construction equipment, according to the leaders of Lancaster Against Pipelines…
    Read More “5 More Protesters Arrested in Lancaster Co. Blocking Pipeline Work”

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    Out with the Old – Part 2: EQT Sign Replaces Rice at HQ Building

    On Monday, Rice Energy was merged into EQT, creating the largest onshore natural gas producing company in these United States (see Out with the Old: Rice Energy Sign Comes Down Day of EQT Merger). In that post we shared with you a short video taken by an MDN friend that showed a pair of cranes taking down the Rice Energy name from Rice’s (now former) headquarters building in Canonsburg, PA (just outside Pittsburgh). Another MDN friend sent us a pair of pictures (below), taken the following day, which show an EQT sign now fixed over top of where the Rice Energy sign once stood. Our second MDN friend also told us that all the parking lot signs at the facility have EQT stickers on them, covering over the Rice Energy name. As we said in our Tuesday post, EQT isn’t wasting any time making a statement: Out with the old, in with the new. EQT is firmly large and in charge. A few days after the merger and Rice is already a memory, starting to fade away…
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    FERC Issues Favorable EA for Power Plant Pipeline Near Philly

    In October the Pennsylvania Dept. of Environmental Protection held a hearing on a proposed 488-megawatt natural gas-fired electric plant in Birdsboro, in Berks County, near Philadelphia (see PA DEP Public Hearing on Japanese Gas-Fired Elec Plant in SEPA). The project, first proposed in 2015 by Canadian-based EmberClear Corp., is making progress, as evidenced by the DEP hearing. In April of this year, two different Japanese companies, Sojitz Corporation and Tokyo Gas, each purchased a one-third share ownership of the project (see Japanese Now Own 2/3 of Marcellus-Powered Electric Plant in SEPA). You can’t have a Marcellus-fired electric plant without a pipeline to feed it. On May 1st of this year, DTE Midstream filed plans with the Federal Energy Regulatory Commission (FERC) to build 13.2-mile, 12-inch diameter pipeline from the Texas Eastern Transmission Company (TETCO) pipeline in Berks County to the Birdsboro site. On Wednesday, FERC issued a favorable environmental assessment (EA)–telegraphing that a final approval for the pipeline project is on the way soon…
    Read More “FERC Issues Favorable EA for Power Plant Pipeline Near Philly”

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    Penn State MCOR Says Drilling, Jobs on an Uptick in PA Marcellus

    There’s no doubt about it, there is more drilling in the Marcellus/Utica today than there was just one year ago. Just look at the rig counts then and now. However, the recovery has been slow in coming, and even though more people are back at work and more work is getting done, activity is still not at the level of a few years ago, before the price crash and downturn. Pennsylvania Business Central recently interviewed Tom Murphy, co-director of the Marcellus Center for Outreach and Research at Penn State University, to ask him about the current uptick in Marcellus activity. Where are the rigs operating now? What about workers who were laid off–are they now back at work? And what role does price play in driving the uptick? Murphy gives some enlightening answers to those important questions…
    Read More “Penn State MCOR Says Drilling, Jobs on an Uptick in PA Marcellus”

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    Riverkeeper Campaign Pressures Towns to Support DRBC Frack Ban

    THE Delaware Riverkeeper is a far-left, radical environmental group that is the self-appointed “caretaker” of the entire Delaware River Basin. It’s run by Maya van Rossum and gets its funding from a variety of foundations, mainly the William Penn Foundation. Riverkeeper’s cause célèbre is a complete, and permanent, ban on fracking in the Delaware River Basin. They’d actually like a permanent ban throughout Pennsylvania (and every other state in the Union), but they’ll take a ban in the River Basin as a first step. Unfortunately Riverkeeper has the ear of the Delaware River Basin Commission (DRBC) and has pressured the DRBC for years to institute a total ban on fracking. The DRBC finally took a step in that direction in September (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). There has been no fracking in the River Basin for 10+ years. So why the urgency for the board to pass a ban now? Because a Wayne County, PA landowner has taken the DRBC to court, challenging their right to impose such a ban. After all, the adjacent Susquehanna River Basin (overseen by the Susquehanna River Basin Commission) is loaded with fracking–with NO harmful effects on water supplies. Earlier this month oral arguments were heard in federal court on the case. The attorney for the DRBC fainted under heaving questioning (see DRBC Attorney Faints in Federal Court During Questioning). The case was postponed to an as-yet-unscheduled future date. Neat trick–faint and the case is postponed another few months. In the meantime, Riverkeeper is obviously not convinced the DRBC will follow through with their threat to pass a permanent ban–or perhaps they want to give the DRBC more ammunition to do so. Riverkeeper is hosting a webinar next Monday–to stoke their crazy groupies. Mamma Maya’s sidekick Tracy Carluccio (Riverkeeper Deputy Director) will give the faithful instructions for how to harass local town boards to the point they’ll sign a petition to support a permanent ban. MDN has a mole on Riverkeeper’s email list and we have their invite below…
    Read More “Riverkeeper Campaign Pressures Towns to Support DRBC Frack Ban”

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    Marcellus Landfill in Washington Co. Seeks to Expand, Add TENORM

    MAX Environmental has operated the Bulger hazardous waste landfill in Smith Township (Washington County), PA since 1958. One of the primary customers for the landfill over the past 10 years has been the Marcellus industry–dumping drill cuttings (leftover dirt and rock from drilling) at the landfill. Earlier this year, MAX sold itself to Altus Capital Partners–a private equity investment firm–for an undisclosed amount (see Pittsburgh-based MAX Environmental Purchased by Investment Firm). With the closing of the deal, MAX’s CEO/owner, William Spencer, rode off into the sunset and Bob Shawver was brought in as the new CEO. At first Shawver signaled the operation would move away from focusing on Marcellus customers. Then reality set in and plans changed (see MAX Enviro Not Walking Away from M-U, Wants to Expand PA Landfill). MAX intends to ask the PA Dept. of Environmental Protection for a permit to expand the Bulger facility by 21 acres. They also want to begin accepting technologically enhanced naturally occurring radioactive materials, or TENORM, from shale drillers. The first stop is, however, is to get local officials on board with their plans. Smith Township has held several hearings about the proposal and last night met to talk about it again. Smith’s attorney prepared a motion for town supervisors that includes 32 conditions before they town will grant an OK to MAX to expand the Bulger facility…
    Read More “Marcellus Landfill in Washington Co. Seeks to Expand, Add TENORM”

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    63K Gal. Brine Spill at Inflection Well Pad in Lycoming County

    Approximately 63,000 gallons of treated brine (naturally occurring, very “salty” water that comes out of a well long after it’s drilled) spilled in an accident at an Inflection Energy well pad in Eldred Township, Lycoming County, PA, on Monday. Inflection blames a contractor and operator error for the spill, which happened after an already-full tank was overfilled. Some of the brine (no word on how much) reached a nearby unnamed creek that flows into the Loyalsock Creek. However, testing done on the Loyalsock shows no presence of contamination. The Loyalsock flows into the Susquehanna River, and the Susquehanna is used as a public drinking water source–hence the concern. There are no warnings to public drinking water operations along the Susquehanna because there is no problem to report. Now comes an investigation, and no doubt fines, for the accident. Here’s what we’re able to find out about the episode–an occurrence so rare it’s newsworthy when it happens…
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    PA Rep. Garth Everett Explains Severance Tax Comments to MDN

    PA Rep. Garth Everett

    Earlier this week MDN ran a story (and our response) highlighting what appears to be a change in position by Pennsylvania Rep. Garth Everett, Republican from Muncy (Lycoming County), PA, on the issue of a severance tax (see Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap). Everett had spoken to the local Williamsport Sun-Gazette and the resulting article quoted Everett as saying he, “feels the time has come for the gas industry to pay a tax on production costs.” The article also said that he is, “fine with a [severance tax] measure that doesn’t transfer the tax to landowners.” Which led us to chide Everett–someone we’ve long admired. Folks around Lycoming County, where Marcellus drilling is big business, read the Sun-Gazette article and the MDN response and began calling Everett to ask him about his sudden change. Everett contacted MDN, requesting a call to clarify what he did–and did not–say to the Sun-Gazette. MDN is happy to report that we now have the full story, and feel much better, about Everett’s position on the severance tax. Here’s a summary of our conversation with Rep. Garth Everett…
    Read More “PA Rep. Garth Everett Explains Severance Tax Comments to MDN”

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    A Closer Look at Kalnin Ventures and Their Marcellus Investments

    It’s time to look deeper into Kalnin Ventures, a Denver, CO-based investment firm that invests in U.S. upstream (mostly shale) deals. Sound familiar? Kalnin has been the “front man” for Banpu Pcl, Thailand’s largest coal producer. Over the past year and a half Kalnin/Banpu have snapped up some 55,000 acres and 355 shale wells–in the northeast Pennsylvania Marcellus (see our Kalnin/Banpu stories here). At least, we thought Kalnin was the “front man” for Banpu. It’s certainly Banpu money buying the leases and the wells, so we figured Kalnin was just an American subsidiary on paper for Banpu. But it turns out the truth is more nuanced. Kalnin is its own company. Yes, Banpu is the major benefactor providing the funds, but Kalnin is clearly in the driver’s seat with these Marcellus deals. Kalnin is not an operator. While news coverage may say Kalnin is “a top-20 gas producer,” as the Bloomberg article below says, that does not mean Kalnin is an operator. They’re investors. They’re owners. Other people do the actual drilling and management of the wells. In checking out the Kalnin website we found this description of the company: “Kalnin Ventures currently is backed by investors with equity fund commitments of USD 500 million, within its oil and gas fund BKV Oil and Gas Capital Partners, L.P. The company seeks to invest in attractive upstream oil and gas opportunities in North America (United States of America and Canada) with the goal of creating long-term sustainable value in the energy industry.” And right under that statement, this interesting statement: “Kalnin Ventures supports and upholds biblical principles as the foundations for the company’s values and underpins our company’s promise of integrity and transparency to our investors and partners.” Hats off to Kalnin for being upfront and unashamed of their God-honoring, faith-based principles. Not many companies have the guts to be so bold these days. Here’s an inside look at Kalnin Ventures, and how they continue to make money on Marcellus shale deals–even in a low-gas-price world…
    Read More “A Closer Look at Kalnin Ventures and Their Marcellus Investments”

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    PA DEP Sec. Visits Snyder County Gas-Fired Power Plant; 2nd Plant?

    Yesterday Patrick McDonnell, Secretary of the Pennsylvania Dept. of Environmental Protection, went on a field trip and took a tour of the Panda Power Funds Hummel Station natural gas power plant site in Synder County. In February 2015, Panda announced a joint venture with Sunbury Generation to build a whopping 1,124-megawatt plant on the site of a recently retired coal-fired plant near Shamokin Dam in Snyder County (see Panda Power Building 3rd Marcellus-Fired Electric Plant in PA). Since that time the project has made steady progress and is now 88% complete. Panda said on the tour yesterday it expects to complete the plant and begin full operations in February of next year–just a little over three months from now. UGI has already built a 34-mile pipeline to feed the plant (see UGI Ready to Begin Flowing Gas via $150M Sunbury Pipeline in PA). Sec. McDonnell is tickled pink (or should we say natgas flame blue) with the project, and said so yesterday. Perhaps the biggest news to come from the tour yesterday is that Panda and Sunbury Generation have partnered for a second gas-fired power plant–right next door to the Hummel Station plant…
    Read More “PA DEP Sec. Visits Snyder County Gas-Fired Power Plant; 2nd Plant?”

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    Rex Energy 3Q17: $47M Loss, 10 More Utica Wells on the Way

    Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), issued their third quarter 2017 update earlier this week. The company continues to bleed money, losing $47 million in 3Q17, versus losing $55 million in 3Q16. An improvement, but showing a profit would be a whole lot better than a loss at this point. Highlights for 3Q17: Rex placed the four-well Wilson pad into sales (Butler County, PA) with initial 24-hour average sales rate per well of ~10.9 million cubic feet equivalent per day (MMcfe/d). Total production averaged 182 MMcfe/d–with 38% of that liquids production. Rex drills in both western PA and eastern OH. Rex officials said they are currently working on 10 new wells in Carroll County, OH that will go online in 2018. So far Rex has drilled 30 wells in the Buckeye State. Below is the full 3Q17 update, along with excerpts from the analyst phone call and the latest Rex slide deck…
    Read More “Rex Energy 3Q17: $47M Loss, 10 More Utica Wells on the Way”