Pennsylvania

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    Shell Files PA Application for Ethane Pipe to Feed Cracker Plant

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    Shell’s long-talked about ethane pipeline, called Falcon Pipeline, is finally official. That is, official in the sense that Shell filed an application with the Pennsylvania Dept. of Environmental Protection last week, looking for permission to build it. Brief history: In February 2016, MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June 2016 (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily broke a story in August 2016 that shed new light on the project–news that Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). As NGI reported at that time, the new ethane pipeline system has a name: the Falcon Ethane Pipeline System. In October 2016 Shell launched a binding open season for the Falcon pipeline (see Shell Launches Open Season for PA-WV-OH Falcon Ethane Pipeline). You might justifiably think that with open seasons and a scad of easements signed between landowners and Shell, that the project had already filed for permission to build. Not so. Last week Shell made it official by filing that paperwork–for the portion of the pipeline running through PA…
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    Pin Oak Energy’s Unique Strategy and PA Focus

    MDN has run two stories about a new Marcellus/Utica drilling company called Pin Oak Energy Partners, one in August (see New Marcellus/Utica Driller Snaps Up Assets in OH, PA) and the other just last week (see Pin Oak Energy Snaps Up 4,300 Acres, 16 Wells from Seneca in NWPA). While Pin Oak is a “new” company, the people running it have been around. CEO Chris Halvorson says Pin Oak is comprised of folks who were formerly with AB Resources. You may recall that AB Resources built a position in the southwestern “core” of the Marcellus and sold out to Chevron several years ago. Pin Oak is “what’s next” for for the former AB folks. Their target: the Appalachian basin. However, they’re doing things differently than most others–zigging while everyone else zags. They like to pick up already-producing oil and gas wells instead of raw acreage. And they don’t take private equity money to fund their operations. They’re using cash from producing wells to help finance new drilling. How about that? Someone that wants to “pay as you go.” That is unique! Here’s a closer look at Pin Oak’s aggressive strategy to expand quickly in north central and northwestern PA…
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    Harrisburg Job Fair Oct 6-7 Looks to Fill 400 Pipeline Jobs

    Listen up job seekers in eastern Pennsylvania: The International Brotherhood of Teamsters is looking for 400 people to work on building Williams’ Atlantic Sunrise Pipeline–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. The job fair is happening TODAY (Friday) and TOMORROW (Saturday) ath the Harrisburg-Hershey Crown Plaza located at 23 South 2nd Street in Harrisburg (8am-4pm both days). According to the Teamsters, there are “hundreds of jobs to fill” and they are “looking to expand our workforce quickly.” Qualifications? You need to be 21 years old or older, have a driver’s licence, and be willing to travel. Construction experience is a plus, but not required. Here’s the deets…
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    Shell Holding Career Expo in SWPA Oct 12 to Discuss Cracker Jobs

    While the Teamsters are holding a job fair today and tomorrow in Harrisburg to recruit for pipeline workers (see today’s lead story), next week Shell and the Community College of Beaver County (CCBC) will hold two back-to-back career expos on the other side of the state, in the Pittsburgh region, to “inform residents about all the current and emerging job opportunities” at Shell’s ethane cracker plant. On Thursday, Oct. 12, Shell will host the Pennsylvania Chemicals Military Petrochemical Day from 8am to 2pm–for former military service members. The event will be held in room 9103 of CCBC’s Learning Resources Center. Then at 6pm on the 12th, a free career expo will be held at the CCBC Dome–open to the public. Preregistration is not required, but is encouraged. This is your chance to meet with folks face-to-face who can help you land a job working on (or in) the mighty Shell ethane cracker. Don’t miss it!…
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    India’s RIL, Carrizo Sell NEPA Marcellus Assets for $210M

    Reliance Industries Limited (RIL) is the single largest company in India, and one of the largest energy companies in the world. RIL invested $3.5 billion in a Marcellus joint venture with Atlas Energy in 2010, and later battled Chevron to buy Atlas–but Chevron won, so RIL became a jv partner with Chevron. RIL currently has 3 U.S. shale joint ventures: the Chevron jv in the Marcellus (owns 40% of that acreage), a jv with Carrizo Oil & Gas in the northeast PA Marcellus (owns 60% of that acreage), and a jv with Pioneer Natural Resources in the Texas Eagle Ford (owns 45% of that acreage). Back in 2015, RIL signaled they are looking to dump all of their U.S. shale assets (see Indian Giant RIL Looking to Dump its Marcellus Joint Ventures). It took a few years, but earlier today Banpu, Thailand’s largest coal producer, announced that is has purchased all of the RIL/Carrizo jv (from both RIL and Carrizo) in northeastern PA–for $210 million. Does Banpu sound familiar? It should. This is the fifth investment Banpu, via its American subsidiary Kalnin Ventures, has made in the northeast Marcellus…
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    ME2 Pipe Blasting in Lebanon County Uncovers Old Pollution

    Blasting and drilling work in Lebanon County, PA related to building the Mariner East 2 Pipeline may have caused old deposits of MTBE (a gasoline additive) that had been stored at an old Sunoco facility to dislodge and migrate–into a nearby farmer’s water well. A subcontractor doing blasting work on Sept. 11 experienced “complications” during a detonation. Pieces of rock and debris hit a nearby house and swimming pool. Not a good thing. That blasting may also have led to the migration of MTBE to a nearby farm where MTBE had not previously been detected. Also not a good thing. Sunoco used to operate the Quentin terminal from 1940 to 1993 that served as a petroleum storage facility for the original Mariner East Pipeline–that flowed petroleum. That pipeline has since been repurposed and now flows natural gas liquids. Leaks from the old storage facility were known to have contaminated the ground in the area. It appears the blasting may have disturbed some of the pollution sitting under ground…
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    FERC Issues Final Approval for Delmarva Pipeline Expansion

    In July 2016 MDN told you about a smallish, but important pipeline project in the Delmarva Peninsula area, which includes most of Delaware and portions of Maryland and Virginia. Eastern Shore Natural Gas’ 2017 System Expansion project will bring new sources of natgas from an interconnection Eastern Shore has with the mighty TETCo (Texas Eastern Company) pipeline near Philadelphia (see PA/MD/DE Pipeline Project Heats Up with Open House Mtgs This Week). The project includes 22.7 miles of new looping pipeline (laid next to existing pipeline) in Pennsylvania, Maryland and Delaware; a 16.9-mile extension to a pipeline in Sussex County, DE; and upgrades to compressor and valve stations. Chesapeake Utilities, the parent company, calls the project the single largest such expansion in Eastern Shore’s history, a project that will bump up gas delivery volumes by 25%. In May the Federal Energy Regulatory Commission (FERC) gave the project a glowing environmental review (see Delmarva Pipeline Expansion Gets Positive FERC Enviro Review). A favorable EIS from FERC is typically prelude to a full, final approval. And such is the case with this project. On Wednesday, FERC issued a certificate approving the project–a final approval. The next step will be for Chesapeake Utilities, the parent company building the project, to request FERC permission to start the bulldozers and backhoes…
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    Southwestern Energy Reduces Methane Leaks, WITHOUT Onerous Regs

    The debate rages, both nationally and on the state level (in Pennsylvania, anyway) about the best way to reduce fugitive methane. That is, to stop methane from leaking out of pipes and into the atmosphere where it supposedly contributes to mythical man-made global warming. Leaving aside the nonsensical global warming stuff, it’s in the best interests of any producer (or pipeline company) to ensure no methane molecules leak out of the system. It’s the stuff they extract and sell! They don’t want their inventory flying away into heaven. The debate is how best to ensure less methane leaks. On one side you have the typical Big Government types that want to regulate everything, down to the type of equipment you use to detect leaks and the methods for fixing it. We have nothing against common sense regulations, but as everyone knows, government tends to screw things up, rather than fix things. On the other side you have drillers and midstream companies who content “just give us a standard and let us figure out how best to meet that standard.” Case in point is Southwestern Energy. Southwestern launched a leak detection and fixing program five years ago–and has dramatically cut the amount of methane leaking from its operations. Southwestern, and others, show us the way it should be done, WITHOUT needing onerous regulations from the federal government or from the regulation-happy PA Gov. Tom Wolf…
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    PA DEP Offers $1M in Grants for CNG, Propane Refueling Stations

    The Pennsylvania Dept. of Environmental Protection (DEP) is offering $1 million in grants to companies willing to build “alternative fuel infrastructure projects” in Pennsylvania. What the heck is that? CNG (compress natural gas) fueling stations, propane fueling stations, and electric vehicle charging stations. The catch? The fueling stations must be open and available to the general public, and must be located with the “designated alternative fuel corridors” of certain interstate highways: I-76, I-276, I-476, I-70, I-95, and I-80. PA wants to goose the use of alternative fuels. Here’s the deets on the program…
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    Big Green Group PennFuture Targets Shell Cracker w/Smear Campaign

    Last week the radicals at Big Green group PennFuture launched an advertising campaign that targets both U.S. Steel Corp. and the might Shell ethane cracker. The ad campaign, called “Your Toxic Neighbor” includes big ads on the sides of buses and on billboards in the Pittsburgh region. From the beginning of PA Gov. Tom Wolf’s administration, PennFuture radicals have populated his administration. Two PennFuture radicals previously in the Wolf cabinet are now gone: former Secretary of Policy, John Hanger (now gone, supposedly to spend more time with his wife and daughter in Massachusetts) and former Secretary of the Dept. of Environmental Protection, John Quigley (fired for conspiring with Big Green groups and getting caught doing it). The one remaining PennFuture radical still in the Wolf cabinet is Secretary of the Dept. of Conservation and Natural Resources (DCNR), Cindy Dunn. Time for Wolf to show her the door too (see Time to Fire Cindy Dunn, Last of Wolf Admin’s PennFuture Radicals). PennFuture tries to pass itself off as some sort of reasonable, pro-environment “let’s just make PA a better place to live” kind of group. Nothing of the sort. They are completely out of the mainstream, which is why we call them what they are: RADICALS. Here’s the latest smear campaign from a fringe group…
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    PA Gov Wolf “Acts” to Finalize the State Budget, No Severance Tax

    Attempting to bluster his way through an epic fail to get a budget agreement done, Pennsylvania Gov. Tom Wolf tried to lay the blame for a late budget on House Republicans, for their refusal to pass a severance tax. Yesterday Wolf unilaterally acted to plug a budget deficit (to fill the gap in a wildly overspent budget) by borrowing $1.25 billion from the state’s Liquor Control Board, from future liquor revenue payments. Playing politics, Wolf laid blame on Republicans in the House, saying he has “had enough of the games” and is “drawing a line in the sand.” Wolf’s willingness to act unilaterally by borrowing against future liquor revenues appeared to have stunned Republicans in the House, who rightly ask this question: If Wolf could have acted unilaterally like this to pull forward revenue and plug the gap, why didn’t he do it a month ago to prevent a downgrade in PA’s credit rating? That’s a great question. So who’s really playing politics with the people of PA? Wolf’s official statement belies his petulant, crybaby attitude in not getting his own way with a Marcellus-killing severance tax. Wolf held out hope that traitorous Republicans in the Senate could bully House Republicans into accepting a severance tax. Wolf lost that political gamble and he now must scramble to try and cover his political backside before the next election. Wolf’s base of far-left Philadelphia teachers won’t be happy. Wolf couldn’t get a severance tax passed in his first four years in office–so why expect he can in the next four? Wolf’s future as governor is now on life support–thanks to principled House Republicans who held the line and refused to cave to the pressure. So for now, the budget battle has ended. It’s over. Yes, a few more things need to get done, but the pressure is off. You might as well say the budget for this year is a done deal, WITHOUT a severance tax!…
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    Greene County, PA Green Lights APV Marcellus-Fired Electric Plant

    In March MDN brought you the news that APV Renaissance Partners (a subsidiary of American Power Ventures) wants to build a 1000 megawatt, combined-cycle power plant at the old Hatfield’s Ferry site in Greene County, PA–to be powered with Marcellus Shale gas (see Marcellus Gas-Fired Power Plant Coming to Greene County, PA). In April, APV officially unveiled their plans for the old Hatfield’s Ferry site, in Monongahela Township (see More Details on Marcellus Power Plant Coming to Greene County, PA). On Monday, the Greene County Planning Commission granted conditional final approval for the project. Before APV gets final final approval from the county, it must first meet a number of conditions–most of them a part of the state permitting process. Here’s the good news that the APV project is one step closer to reality…
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    2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA

    In reporting on APV Renaissance Partners’ plan to build a 1000 megawatt electric power plant in Monongahela Township (Greene County), PA, today, we noticed an interesting closing paragraph in the story we quoted, which says: “Another energy company, Hill Top Energy Center, also has proposed constructing a natural gas power plant in Greene County. Hill Top has proposed building a 536-megawatt plant on 41 acres of land off Thomas Road in Cumberland Township. A public hearing on Hill Top’s proposed air quality plan will be held by DEP at 6 p.m. Nov. 2 in the Carmichaels Area High School auditorium.” A second Marcellus-fired power plant planned for Greene! Who knew? We went searching for details we could find to share with you about this second project, which will get a DEP hearing in a month…
    Read More “2nd Marcellus-Fired Electric Plant Proposed for Greene County, PA”

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    Pin Oak Energy Snaps Up 4,300 Acres, 16 Wells from Seneca in NWPA

    In August MDN introduced you to a new-to-us driller based in Akron, Ohio–Pin Oak Energy Partners (see New Marcellus/Utica Driller Snaps Up Assets in OH, PA). Pin Oak is owns both conventional and unconventional (shale) oil and natural gas wells, along with associated assets (like pipelines). At the time, Pin Oak currently operated 363 wells producing nearly 5.7 MMcfe/d (32% liquids) across more than 32,000 acres in the Marcellus/Utica region. You can now add another 16 wells (14 Marcellus, 2 Utica) and 4,300 acres to those totals. Yesterday Pin Oak announced they have purchased wells and acreage from Seneca Resources–in Forest, Elk, McKean and Cameron counties in Pennsylvania. Terms of the deal were not disclosed. We can also tell you that last week Pin Oak got an increase in their line of credit with the bank–now able to borrow up to $150 million. Here’s the latest on the newest (rapidly growing) entrant to the Marcellus/Utica…
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    Huntley & Huntley Starts Shale Drilling in Plum, PA Next Month

    Plum, PA – click for larger version

    Huntley & Huntley, a Marcellus/Utica driller headquartered in Monroeville, PA (near Pittsburgh), will begin drilling a shale well in Plum (Allegheny County, also near Pittsburgh), PA next month. It will be H&H’s first shale well in the Borough of Plum. Yesterday H&H spokesman Ed Valentas gave a presentation to the Plum Chamber of Commerce, to update them on what to expect and to dispel some of the fear mongering going on with respect to shale drilling. Construction of the well pad in Plum will begin next month. Drilling the first well is scheduled for February, with fracking soon to follow. Currently H&H has just one well pad (multiple wells) permitted in Plum–but they are considering other locations around Plum too…
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    Latest PA Budget Bill Drops Fix for Slow DEP Permit Reviews

    In an issue that’s growing old, fast, the Pennsylvania legislature has still not dragged the dead horse known as the 2017 state budget across the finish line. It all started months ago when the Republican-led legislature passed a $32 billion budget–with only $30 billion available to pay for it. Big mistake. The pressure was intense to pass a severance tax to help fill the gap. Traitorous Republicans in the Senate caved to that 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 that misguided and mangled budget bill, Senate 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 yesterday, when the DEP fixes came out. Fortunately there is still no severance tax. However, Republicans have floated a plan to nearly double the tax on hotel/motel rooms. Such a tax would make Philadelphia’s hotel tax a staggering 21.25%, the highest in the nation! Gov. Tom Wolf is (so far) not commenting on the hotel tax idea–he still wants a severance tax and said so yesterday. So although a severance tax appears dead, and we think it’s 99% dead, it’s not yet 100% dead–so we need to remain vigilant in our efforts to kill it. And although the fixes to the DEP would be most welcomed, they won’t happen as part of the budget. There’s still some hope those fixes will happen apart from the budget bill. Here’s the latest word on PA budget negotiations…
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