Pennsylvania

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    PennEast Pipeline’s Sole Compressor Station Approved by PA Town

    PennEast Pipeline has just achieved yet another milestone on its way to getting built. At a meeting last Thursday, the Board of Supervisors for Kidder Township (Carbon County, PA) voted 5-0 in favor of issuing a permit to PennEast to site the one-and-only compressor station the 120-mile pipeline will need. Proving yet again that most Pennsylvanians are in favor of this project, contrary to the mainstream/leftist media drumbeat against it. PennEast is a $1 billion primarily 36-inch pipeline from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The company expects final Federal Energy Regulatory Commission (FERC) approval any week now. There are still a few hurdles left–mostly in New Jersey. But those hurdles are certainly surmountable. The radical Sierra Club and THE Delaware Riverkeeper are adamantly opposed and continue to try and throw up legal (and regulatory) roadblocks. No matter. This important pipeline will get built–and this compressor station approval is one more bit of evidence that it will get built…
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    Buffalo Bills Owner Terry Pegula Lives a (Fracking) Double Life

    Terry Pegula is an interesting guy. He’s a billionaire who owns both the Buffalo Sabres (NHL hockey team) and the Buffalo Bills (NFL football team). Pegula is the owner of East Resources, once a big driller (and holder of acreage) in the Marcellus Shale. Pegula sold off East’s Marcellus assets and used the money, in part, to buy the Buffalo Bills in 2014, which gave rise to MDN calling the team “the Marcellus Bills”–since it was Marcellus money that kept the team in Buffalo, instead of moving to another market (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money and Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Yes, “dirty” fracking money saved the Bills! That’s a real conundrum for the lefties in Buffalo, including the Buffalo News. The lefties love the fact the Bills stayed in town, but it was “blood money” that bought the team. That’s the attitude. Recently the Buffalo News woke up to the fact that Pegula is still fracking. He started up a new company, JKLM, in order to keep his finger in the Marcellus/Utica pie. JKLM is, as we reported in July, fracking 12 Utica wells in Potter County, PA this year (see JKLM Drilling 12 Utica Wells in Potter County, PA This Year). The News has finally figured it out, and written an expose on Pegulas “other world,” like he’s hiding another wife and family somewhere secret, living a secret double life. Kind of funny! In a “rare interview,” Pegula is unapologetic for his fracking roots, and for his continued fracking practices. The article shares insights into Pegula’s fascination with the oil and gas industry, and his interest in Potter County, PA…
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    Marcellus Industry Keeps a Close Eye On 3 Pending Bills in PA

    The Marcellus industry is closely watching three pieces of legislation sitting in the Pennsylvania legislature, bills that the industry fervently hopes do not pass. One of the bills is House Bill (HB) 557, introduced by Rep. Garth Everett, which would amend/fix the Oil and Gas Lease Act to ensure landowners get a minimum royalty of 12.5%, regardless of post-production deductions (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Another bill is HB 1624, which would slap a 6.5% severance tax on the drilling industry, with an allowance for drillers to deduct the current impact fee they already pay (the equivalent of a severance tax). So in essence, HB 1624 doubles or triples the existing severance tax (i.e. impact fee) to obscene new highs. The third bill is HB 542, the state budget bill for 2017 passed by the Senate (not the House), which would initiate a new 2% severance tax on top of the existing impact fee (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Two of the three bills are unlikely to get passed during this session. The third is a toss-up. Which is which?…
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    MAX Enviro Not Walking Away from M-U, Wants to Expand PA Landfill

    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. Shawver acknowledged it would have been “nuts” not to pursue business from the shale industry when it was going gangbusters, but Shawver said he would “retool” MAX–away from depending on the Marcellus industry. MAX will no longer be known and branded as a company in the oil and gas space. Shawver is rebranding the company, going after customers that are the region’s “traditional bread and butter”–manufacturing, industrial facilities and construction (see MAX Environmental Walks Away from Marcellus/Utica). Except reality has set in and plans have changed. MAX is applying for a permit to expand the Bulger facility by 21 acres, to continue doing what they are doing now. And what, you may ask, are they doing now? “Most of the residual waste MAX accepts now consists of drill cuttings from the Marcellus Shale industry.” Looks like MAX isn’t walking away from the Marcellus after all…
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    PA House Member Intros Resolution to Stop DRBC Frack Ban Effort

    Rep. Jonathan Fritz

    Pennsylvania House of Representatives member Jonathan Fritz, Republican from Wayne County, PA, is one of the rising stars in the PA House. MDN editor Jim Willis has met and spoken with Rep. Fritz twice. Great guy. Conservative. Head screwed on straight. Fritz serves areas of both Wayne and Susquehanna counties in the northeastern corner of PA. Does Wayne County sound familiar? It should. It’s one of two counties the radicalized Delaware River Basin Commission (DRBC) wants to ban fracking in (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). A few weeks ago, the liberal Democrat governors of three states–PA, NY and DE–had their representatives vote to begin the process of placing a permanent ban on hydraulic fracturing (fracking) within the Delaware River Basin–supposedly because fracking is a threat to some 15 million people who get their drinking water from the Delaware River basin. Just one teeny tiny problem. Fracking IS allowed, and has been happening for over 10 years, in the neighboring Susquehanna River Basin, where over 4 million people get their drinking water. The SRBC (Susquehanna River Basin Commission) wisely does not restrict fracking–they only manage water withdrawals. There have been NO water issues in the SRBC. Yet the libs in the DRBC demand a ban based on a false meme of water contamination risk. Last week, Rep. Fritz introduced House Resolution 515, which (if passed) calls on the DRBC to abandon its efforts to strip away the property rights of people in the DRBC’s jurisdiction by enforcing a frack ban…
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    Texas Private Equity Firm Forms to Invest in Marcellus/Utica

    District 5 Investments, an energy-focused private equity firm based in Texas, has formed a new subsidiary called Pathfinder Resources in order to invest in the Marcellus/Utica region. According to an announcement yesterday, Pathfinder will focus on acquiring “producing and non-producing oil and gas mineral interests, royalty interests and non-operated working interested” across the U.S., but starting first in the Marcellus/Utica. Investment sizes range from $5 million to $35 million. Here’s the latest investor to grab a piece of the Marcellus/Utica pie…
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    Civil Debate in Plum, PA re Proposed Wastewater Injection Well

    As MDN reported in July, the Federal Environmental Protection Agency (EPA), the agency in charge of approving oil and gas wastewater injection wells, is currently reviewing an application and plan from Penneco Environmental Solutions (division of Penneco Oil Co.) to convert a plugged gas well into a brine (wastewater) injection well in Plum, PA–near Pittsburgh (see New Frack Wastewater Well on the Way in Allegheny County, PA). PA has just a handful of wastewater injection wells–less than 10. The most recent two such projects were vigorously opposed by the municipalities where they are located–Highland Township in Elk County, and Grant Township in Indiana County. The towns eventually backed down when they were sued by the PA DEP over their illegal actions (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). Although we expected a huge push-back in Plum, if a meeting held yesterday to debate the project is an indicator, perhaps the push-back won’t be as much as we thought. Yesterday a panel of experts–both pro and con–interacted with a crowd of around 100 people in Plum Council’s chambers. One of the people on the pro side was MDN friend Dave Spigelmyer, president of the Marcellus Shale Coalition. One of the people on the con side was Doug Shields, former Pittsburgh councilman and now paid agitator/protester for the radical Food & Water Watch. You might think there would be fireworks at such a meeting–but there wasn’t. The biggest surprise of the meeting is that there were no surprises–it was civil. No shouting. No theatrics. No loud-mouthed protesters. Such a project comes with serious questions and concerns–like earthquakes and water contamination. Those issues and more were addressed at the meeting…
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    PA Sending Wrong Message to O&G, Petrochemical, Manuf Industries

    Charlie Schliebs – Stone Pier Capital Advisors

    Over the years MDN editor Jim Willis has had the pleasure of meeting many great people–both in the shale industry and in other industries that overlap with shale energy. One such person is Charlie Schliebs, managing director of the Pittsburgh-based Stone Pier Capital Advisors. Charlie is a long-time MDN subscriber (and friend). He’s a money guy, having had a hand in a number of deals to finance Marcellus/Utica drilling. He’s also smart, and a mover-and-shaker–well-connected with many of Pennsylvania’s top business and political leaders. Recently Charlie composed an editorial to share with his clients and friends. The original intent was to write about the severance tax and the sellout by PA’s Republican Senate. However, the editorial grew to encompass the state’s treatment of the petrochemical and even construction industries. We asked Charlie for permission to bring you his editorial, and he graciously agreed. In it, he offers some insight into his original support for Tom Wolf during the last gubernatorial election, his profound disappointment with Wolf (be sure to read about the event Charlie hosted in which then-candidate Wolf participated and made an arrogant fool of himself), and how Wolf settled on a 5% severance tax plan, based on an off-hand remark by EQT. This is great stuff–real behind-the-scenes stuff only someone like Charlie can write about. Take time to read the whole editorial…
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    Corrupt DEC Bans PA Marcellus Brine in NY, Tightens Other Brine Use

    The Andrew Cuomo-corrupted New York State Dept. of Environmental Conservation (DEC), run by NRDC gang member Basil Seggos, has just slammed the door on New York towns using brine from the Pennsylvania Marcellus. Earlier this week the DEC posted new final regulations as part of “strengthening” the state’s solid waste regulations, referred to as Part 360. Brine is another name for produced water. When you drill a hole deep in the ground, well below the water table (which sits at maybe 200 feet down), over time water from the depths (a mile or more down) will come to the surface. This is not wastewater used in fracking (called flowback), but naturally occurring water (brine). It’s called brine because it contains a lot of minerals–far “saltier” than ocean water. There are a number of ways to dispose of all that water coming out of drilled wells for years after they are drilled–dispose of it via an injection wells, recycle it, or in some cases, treat it and use it as a deicer on roadways. Many towns use brine for that purpose. The DEC’s new regulations stipulate that if a town wants to use brine from conventional oil and gas wells, that’s fine (with certain restrictions). But if the brine comes from a Marcellus Shale well–it’s banned. Keep in mind there is virtually no chemical difference between the two. Which leads us to the conclusion that this is one more very intentional swipe at the shale industry by a state that is closed for business…
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    Community College of Beaver County Preps Students for Cracker Jobs

    Looking to land a job at Shell’s $6 billion ethane cracker plant when it’s up and running in a few years? A new program set up by Shell with the Community College of Beaver County (CCBC) may give you a leg up. CCBC offers a program in process technology that leads to an associate’s degree. As of this spring, 45 people were enrolled. CCBC expects 70 people to enroll this fall. CCBC’s process technology degree is just one part of their effort to train people for advanced manufacturing careers with Shell and other petrochemical companies. CCBC is partnering with businesses, nonprofits, other colleges to form the Tri-State Advanced Manufacturing Consortium which will help prepare students and retrain workers to meet the needs of energy and manufacturing companies throughout the region. More deets on getting trained for a future cracker job…
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    Northeast Energy Management Goes Bankrupt; Auctioning Rigs, Assets

    It’s always sad when we have to report that a Marcellus/Utica-focused company goes out of existence. Northeast Energy Management, which operated under the name Northeast Energy with headquarters in Indiana, PA, claimed to be “a leader in tophole drilling in the Marcellus/Utica shale” and “a preferred contractor for many of the largest oil and natural gas exploration and production companies.” Perhaps it was, but it is no more. The company filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court – Western District of Pennsylvania back in January of this year. As of yesterday the court ordered the company’s assets to be liquidated at auction. A live and online auction will take place next week, on Sept. 27, featuring two Schramm drilling rigs, Detroit Diesel engines with pipe handlers, trailer mounted and skid mounted air compressors, boosters, generators, accumulators, trailers and a variety of tractors, pick-up trucks, construction equipment and other drill site related equipment. Here’s the the details about the auction and how you can participate…
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    New MarkWest Processing Plant Approved by Smith Twp in SWPA

    Smith Township, Washington, PA

    In August MarkWest Energy (now part of MPLX) briefed Smith Township (Washington County, PA) officials on plans to build a new natural gas processing plant (see Update on MarkWest Processing Plant Proposal for Smith Twp). The project was first introduced last fall, but then went quiet until May of this year. MarkWest plans to initially building one cryogenic plant and one de-ethanizer at what it calls the Harmon Creek Complex. Eventually MarkWest wants to build four cryogenic plants and two de-ethanizers at complex. Smith officials understandably had questions and wanted certain things in writing before they would consider issuing a “conditional use” permit for the project. Apparently the questions got answered. On Monday, Smith supervisors voted 3-0 to approve the project. However, the backhoes are not firing up just yet. Before the project can get built, the PA Dept. of Environmental Protection must issue an air permit (GP-5) for the project. Anti fossil fuelers were not happy with Smith’s approval, claiming MarkWest has been hiding the full scope of the project…
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    PA Gov. Wolf Visits NEPA to Barter for Marcellus Severance Tax

    Hoping to pressure the Republican legislature to adopt a budget with a new severance tax, Pennsylvania Gov. Tom Wolf (Democrat) visited two towns in northeast PA yesterday that are in the heart of Marcellus Shale country. One of those towns is the bucolic village of Tunkhannock, in Wyoming County. MDN editor Jim Willis visited Tunkhannock a few months ago to attend an Atlantic Sunrise Pipeline rally (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). During his visit yesterday, Wolf said there has been progress in the budget talks, but things are stalled at the moment. The big point Wolf made, the reason for the visit, is that $1 million of state money promised to Tunkhannock to run gas lines in the area for local utilities to tap into abundant, local Marcellus gas is on hold because of the budget impasse. Wolf was dangling a $1 million carrot, implying that if the local yokels want that money to run new gas lines, they dang well better support his plan to pass the budget–a plan that includes a severance tax on the Marcellus. That’s how we read it. From Tunkhannock, Wolf traveled north to Montrose, in Susquehanna County, where he visited the Endless Mountains Hospital–a hospital largely built with Marcellus money from Cabot Oil & Gas. If Wolf’s severance tax had been in place, that hospital would not have gotten built…
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    Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic

    Rich, snobbish homeowners in an “upscale” Philadelphia suburb development are asking an appeals court to stop Sunoco Logistics from building the Mariner East 2 pipeline through the edge of their high-priced development because, they claim, the digging is disturbing the dirt (which is what digging does) and disturbing the dirt is causing lead and arsenic to become dislodged. The lead and arsenic are supposedly in the dirt as a result of pesticides used when the land was an apple orchard. The claim is flat out BS–Barbara Streisand. The Andover Homeowners Association in Thornbury Township (Delaware County) is the same group that a few weeks ago acted like five year-olds by intentionally stepping over a painted line put there to protect them from a ME2 construction zone (see Philly Antis Step Over the Line (Literally) at ME2 Pipeline Site). Spoiled rotten children grow up to be spoiled rotten adults. Here’s the latest tactic to stop a pipeline from the gentry class–just because they don’t like how digging a pipeline makes their development look to the neighbors…
    Read More “Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic”

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    PA Dem Senator Calls for “Study” to Address DEP Permit Delays

    A Pennsylvania Senator from Wilkes-Barre, John Yudichak (Democrat) has floated a “memoranda” among his Senate colleagues asking them to join him in sponsoring a resolution (copy below) for an “independent performance review” of the state Dept. of Environmental Protection (DEP) and its shale permitting program. Since Tom Wolf assumed office as governor of Pennsylvania in January 2015, the DEP has been in a downward spiral when it comes to the speed with which they approve permits for the Marcellus Shale industry. The DEP has a policy of issuing erosion and sedimentation permits 14 days from the date of application. These types of permits are common and necessary when building roads, well pads, etc. Lately it has taken the DEP 250 days to issue those permits! Permits related to drilling wells are supposed to take no more than 45 days. Those permits now average 93 days. The DEP is hopelessly backlogged–and it’s getting worse. When PA’s traitorous Republican Senate sold out and signed on to a Marcellus Shale severance tax back in July, the Senate also approved (as part of the budget bill) fixes to speed up the permitting process (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). Senators included a provision to have third party contractors–people outside of the DEP–review applications at the DEP, including permits for oil and gas drilling, when the DEP can’t review those applications in a timely manner. There’s also a provision that certain permits, like those granted to drillers for sediment and erosion, will automatically be granted if the DEP drags its feet and doesn’t grant the permit by the current, specified deadline (45 days, with a possible 15 day extension). Since DEP can’t seem to fix its own mess, the Republican Senate is willing to “lend a hand” to help them get it done. Democrats are adamantly opposed to the plan. Enter Yudichak and his plan to “study” the situation. This is nothing more than a typical delay and stall tactic. Appear to be addressing the problem when you really aren’t. To which we say–“too much, too little, too late” Sen. Yudichak. Your guy (Wolf) has had nearly three years to fix it and he hasn’t–it’s time to let the Republican legislature get the job done…
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    Atlantic Sunrise Gets Ready to Cross 5 Towns in Lebanon County, PA

    As MDN reported yesterday, construction work on two compressor stations part of the Williams $3 billion Atlantic Sunrise Pipeline project began last Friday, the same day the Federal Energy Regulatory Commission (FERC) gave the project permission to begin construction (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Next up will be digging to lay the pipeline itself. The Lebanon Daily News reports residents in Lebanon County can count on seeing activity there “any day now.” The article names the five townships where the pipeline will cross, and says first up will be staging of equipment, then tree clearing, and finally (perhaps in mid-to-late October) the pipeline itself will get laid in the ground. A few antis in Lebanon have been quite vocal against the project over the past couple of years (see Lebanon County Antis Want Public (Spectacle) Mtg or No Mtg at All). Interestingly, over the past year or so Lebanon antis have been mum. Will we see any nutjobs chain themselves to bulldozers in Lebanon County? We doubt it, but you never know. Depends on whether or not out-of-town Big Green groups send troublemakers into the area. Here’s the list of five towns fortunate enough to see the Atlantic Sunrise, along with the list of four contractors hired to build the pipeline…
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