Pennsylvania

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    PA House Introduces Balanced Budget with NO Severance Tax

    The Republicans in the Pennsylvania House of Representatives have done the hard work that PA Senate Republicans failed (or refused) to do: they have just introduced a budget bill that doesn’t raise a single tax, including no horrible severance tax–and yet they will balance a wildly overspent budget. How will they accomplish this feat of Houdini magic? By tapping into the bloated extra money budgeted but not spent by numerous state agencies. For example: mass transit, ports, rails and infrastructure accounts have a cumulative extra $507 million sitting in bank, unused. Why not reallocate it? Hazardous waste and industrial cleanups, agriculture, environmental, conservation and recycling programs have an extra $440.5 million laying around. Why not reallocate it? Etc. House Republicans, unlike their traitorous Senate counterparts, have “found” $2.4 billion in money laying around, unused in other accounts, that they plan to reallocate to the state budget. Genius! This is why House Speaker Mike Turzai should be PA’s next governor, not the inept Tom Wolf…
    Read More “PA House Introduces Balanced Budget with NO Severance Tax”

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    PA DEP Report on Emissions Exposes Wolf’s Methane Plan as a Dud

    In January 2016 Pennsylvania Gov. Tom Wolf and his now-fired Secretary of the Dept. of Environmental Protection (DEP), John Quigley, introduced an awful four-point plan to supposedly reduce methane emissions by 40% over the next five years (see PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs). Even though the plan has not (so far) been implemented, due to the negative effects it would have on the drilling industry, the happy news is that air emissions have improved, dramatically, as a recent PA DEP annual report chronicled (see PA DEP Reports: Air Emissions from Shale Industry Improved in 2015). Although methane emissions went up a tiny bit because there’s more drilling and more pipelines than ever, the big news is that methane emissions per unit of production actually went DOWN. But you won’t read that in mainstream news where they trumpet a so-called increase in methane as an excuse to implement Wolf’s dud plan…
    Read More “PA DEP Report on Emissions Exposes Wolf’s Methane Plan as a Dud”

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    PA-Based Talen Energy (Elec Generator) Sells NatGas Trading Biz

    Talen Energy was birthed in June 2015–a combination of PPL Energy Supply and certain assets of Riverstone Holdings. The company, headquartered in Allentown, PA, is one of the largest competitive energy and power generation companies in North America. Talen owns or controls 16,000 megawatts of generating capacity in wholesale power markets, primarily in the Northeast, Mid-Atlantic and Southwest regions of the U.S. Talen has gotten into converting and building natural gas-fired electric plants, stories we’ve covered over the past few years (see our Talen Energy stories here). At one time Talen employed around 500 people in Allentown at its HQ. In summer 2016 the company announced layoffs for 131 people. In May of this year, the trend continued (see Allentown-Based Talen Energy (Elec Generator) Laying Off Workers). Now comes word that the company is selling off its natural gas trading business for $54 million, transferring another 11 Talen employees from its Allentown HQ to the company buying the business. Talen considers buying and selling natgas on the commodities markets as “noncore” to its power generation business…
    Read More “PA-Based Talen Energy (Elec Generator) Sells NatGas Trading Biz”

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    TGP’s Susquehanna West Project Gets Green Light to Begin Service

    In April 2015 Kinder Morgan’s Tennessee Gas Pipeline (TGP) subsidiary filed an application with the Federal Energy Regulatory Commission (FERC) to build 8.2 miles of new looping pipeline in Tioga County, PA and beef up two compressor stations in Bradford County, PA. The $142 million project is called the Susquehanna West Project. It will increase capacity along the 300 Line section of TGP, bumping it up by 145 million cubic feet per day (Mmcf/d). All of the extra capacity is spoken for by Statoil and the wells they’ve drilled in NEPA. Last September, FERC approved the project (see FERC Approves Another KM Pipeline Project in the PA Marcellus). The project was forecast to be done and dusted, going online, by Nov. 1. Usually we bring you news about such projects being delayed. In a happy reversal of that trend, last week FERC granted Kinder Morgan permission to bring the project online, NOW, a full two months ahead of schedule. Christmas came early this year…
    Read More “TGP’s Susquehanna West Project Gets Green Light to Begin Service”

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    Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP

    The red lines show the Atlantic Sunrise Pipeline expansion. The light blue lines are the existing Transco system.

    Great news to report! Both the U.S. Army Corps of Engineers (ACE) and the Pennsylvania Dept. of Environmental Protection (DEP) have now issued federal Clean Water Act stream crossing permits for the Atlantic Sunrise Pipeline–a $3 billion, 198-mile 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. In addition, portions of the project that don’t include laying new pipeline (the “brownfield” part of the project) running from Lancaster County, PA all the way to Choctaw County, Alabama go online today–reversing the mighty Transco and increasing its flow rate by 400 million cubic feet per day (MMcf/d). One permit remains to be issued–an air permit–by the PA DEP. Williams expects to begin construction on the new pipeline (“greenfield” part) later this month…
    Read More “Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP”

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    PA DEP Reports: Air Emissions from Shale Industry Improved in 2015

    The Pennsylvania State Dept. of Environmental Protection (DEP) keeps track of emissions from various sources–including the shale industry. When drillers drill and pipeline companies pipe, the equipment used leaks some nasty stuff into the air. Frankly it’s no different for any industrial activity or business. Even homes. We all emit stuff into the air. The question is, how much do we emit and does it rise to the level of being harmful? Yesterday the DEP released air emissions numbers for the shale industry for 2015–the most recent year in which they have completed data. What does it show? According to DEP Secretary Pat McDonnell, it presents a “mixed picture.” Some of the nastiest pollutants, like nitrogen oxides (NOx), sulfur dioxide (SOx) and particulate matter (PM2.5), decreased from 2014 levels. Some things like methane (natural gas, considered a “pollutant” if it escapes into the atmosphere where it’s said to contribute to mythical global warming) are increasing. Because methane is increasing, McDonnell says more needs to be done to stem the leaking. On balance, this report looks pretty good to us–pollution from the gas industry (the things that really matter like NOx, SOx and PM2.5, are decreasing. A reason to celebrate the good work being done by the industry…
    Read More “PA DEP Reports: Air Emissions from Shale Industry Improved in 2015”

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    PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018

    It looks like Pennsylvania’s conventional (non-shale) oil and gas drillers will get a reprieve from onerous new drilling rules–at least until next year. PA Gov. Tom Wolf has been obstinate in demanding onerous new drilling rules for the conventional, as well as unconventional (shale) drilling industry since he took office. Reworked drilling rules for both conventional and shale drillers were done and ready to go under previous Gov. Tom Corbett. Then Corbett lost to Wolf, and Wolf demanded changes to the common sense rules everyone had already agreed to (see New Draft Drilling Regulations in PA: Wastewater Impoundments Out). Wolf’s changes for conventional drillers threatened to run PA’s traditional, small conventional drillers out of business by applying the same regulations to them that will apply to shale drillers. The Pennsylvania Independent Oil & Gas Association (PIOGA) represents many of those small conventional drillers and vigorously fought back (see PIOGA Turns Up the Heat on Wolf/Quigley Over TAB/Chapter 78 and PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). In the end, Wolf’s own Democrat Party legislators in the House and Senate abandoned him and the writing was on the wall: The entire package of drilling rules, for both conventional (Chapter 78) and shale (Chapter 78a) was headed for defeat. The legislature was about to repeal both sets of newly-minted DEP rules–so in 2016 Wolf pivoted and decided to accept half a loaf–passage of the shale rules, Chapter 78a (see Wolf Really Didn’t Wise Up, He Just Took Half a Loaf re Drilling Regs). Since that time, we’ve not heard much about Chapter 78, which applies to conventional drillers. In the August 19 Pennsylvania Bulletin, the DEP published a short notice to say the agency will now wait until late 2018 before attempting changes to Chapter 78 for conventional drillers…
    Read More “PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018”

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    Did Shell Pull a Fast One on Big Green Groups re Air Permit?

    Earlier this week MDN reported that Shell had settled an action brought by Big Green groups against an air permit issued for their now under construction ethane cracker plant in Beaver County, PA (see Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit). In 2015, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories) filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board, a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups wanted fence line monitoring. So Shell “caved” and agreed. But in reading an account of the agreement, it dawned on us, reading between the lines, that perhaps this is what Shell planned all along! That is, Shell already planned to do fence line monitoring. The settlement Shell signed earlier this week ensures the Big Green groups can’t bring any further actions with regard to the air permit. We don’t know for sure, but it seems to us like maybe Shell was playing a long game of chess, and knew this kind of action would come, and held back the fenceline monitoring piece until the right time to play it–trading the fence line monitoring pawn for inoculation against future Big Green litigation. Smart…
    Read More “Did Shell Pull a Fast One on Big Green Groups re Air Permit?”

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    Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0

    Yesterday MDN brought you the news that Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011 (see Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well). In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). The DEP said a Range well, drilled in 2011 in Lycoming County, PA, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled said methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board. In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We thought that was THE END. But it wasn’t. On Monday of this week, both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” We now have a copy of the settlement itself–and it shows the DEP will not extra one penny from Range over what they previously said should cost $8.9 million. Interesting. Antis like THE Delaware Riverkeeper, Maya van Rossum, are “dumbfounded” at the settlement. Below is a copy of the settlement paperwork and select anti reaction to it…
    Read More “Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0”

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    Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline

    Last week MDN brought you the news that THE Delaware Riverkeeper had lost a federal lawsuit against Kinder Morgan’s Orion Project to expand the Tennessee Gas Pipeline in northeast Pennsylvania (see Dela. Riverkeeper Loses Fed. Court Case Against NEPA Pipeline). Riverkeeper argued that both the U.S. Army Corps of Engineers and the PA State Dept. of Environmental Protection (DEP) should not have issued Clean Water Act stream crossing permits for the project. Last week a federal court ruled that the U.S. Army Corps was well within its right to do so. This week the other shoe dropped. The U.S. Court of Appeals for the Third District ruled that the DEP was also within its right to issue a permit. In this case, two strikes and THE Delaware Riverkeeper is out. The project, which received full Federal Energy Regulatory Commission approval in February of this year, remains on track to be built/online in June 2018…
    Read More “Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline”

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    PA Sen. Gene Yaw Defends Vote for Severance Tax

    PA Sen. Gene Yaw

    As MDN previously reported, in July the Pennsylvania Senate, which is controlled by Republicans, voted to enact a new severance tax on top of the existing impact fee (see Traitorous PA Senate Republicans Pass Severance Tax Bill). We named names in that article of those Republicans we consider to be traitors to the industry by voting for this insanity. One of those Senators is Gene Yaw, from Williamsport. Until now, we had not publicly read of how northeast PA Senators justify their vote for the severance tax. We now have. Sen. Yaw provided a statement to a local newspaper in Sayre with statements to explain his vote. Among his justifications: It was his “constitutional obligation” to vote for it, to “steady a sinking financial ship.” Yaw points out he voted for the original impact fee and that over time, revenue from that fee has trailed off, creating the need for a new revenue source (from the Marcellus industry) to replace it. The severance tax fits the bill for Yaw. Here is how Sen. Yaw justifies his vote…
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    Sisters of the Corn Say Fight to Stop Atlantic Sunrise Not Over

    We don’t often highlight news from the Amazon-owned Washington Post, since much of its reporting is fake news (outright lies, many times), but this time we couldn’t resist. A Washington Post article published yesterday appears to contain at least some truth–about a group of Lancaster nuns. We’ve previously written about a group we call Sisters of the Corn. They stuck a few wooden park benches in the middle of a corn field that they own (leased to a local farmer), and called it a “chapel” so they can claim the planned Atlantic Sunrise Pipeline that will go through that field violates their so-called religious freedom. It’s a sham–backed by local radicals calling themselves Lancaster Against Pipelines. As we reported on Monday, a PA judge, in an eminent domain case, ruled against the Adorers of the Blood of Christ (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe). However, the Sisters have also filed a frivolous federal lawsuit claiming religious freedom violation, which could still go in their favor, odds about 99 to 1 against (see Lancaster Nuns Sue FERC to Stop Atlantic Sunrise Pipeline). If all else fails, the radical antis that the Sisters have aligned themselves with are pledging to sit their rear-ends in the middle of the corn field and “pray” (who knows to whom?) in a bid to prevent construction of the pipeline through the field. That is, they will engage in an illegal activity requiring police involvement to remove them–which of course will create a media circus. The kicker: the Sisters operate a retirement community on the same property–heated by natural gas…
    Read More “Sisters of the Corn Say Fight to Stop Atlantic Sunrise Not Over”

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    Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill

    Will anti-fossil fuel Big Green groups succeed in turning a molehill into a mountain? That’s what they are attempting to do with the latest tiny spill (50 gallons) of drilling mud by Sunoco Logistics Partners in underground drilling work for the Mariner East 2 pipeline project in Dauphin County, PA. Over the past several months, Sunoco has experienced some “inadvertent returns” (i.e. leaks) of drilling mud at various locations. One of those was in Chester County, where a serious leak temporarily fouled a water aquifer and clouded drinking water for 15 local households (see Sunoco Stops ME2 Drilling in Chester County Following Water Issue). Sunoco took extraordinary steps to make it right, going so far as to pay to run municipal water to affected homeowners. Earlier this month Sunoco struck a deal with several Big Green groups to provide stricter regulation for ME2’s underground drilling (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Part of the deal says if Sunoco experiences two leaks of drilling mud at the same location, they must shut down drilling in that location and wait for the state Dept. of Environmental Protection to further review drilling plans before they can restart. On August 24th there was a 50-gallon drilling mud spill into the Susquehanna River in Dauphin County related to ME2. (A quick reminder: drilling mud, or “bentonite,” is non-toxic–the same stuff found in toothpaste and kitty litter). Thing is, there was another spill of 495 gallons at the same location a week earlier. Antis say Sunoco must now shut down drilling in that spot until further notice. Sunoco is saying that particular location was not part of the signed agreement…
    Read More “Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill”

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    PA 2Q NatGas Production Report – Another New Record

    It continues to be another banner year for natural gas production in Pennsylvania, going by the latest quarterly production report. Yesterday, the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for May-Jun 2017 (full copy below). It shows natgas production rose 3.8% compared to the same period last year. It also shows the number of producing wells is up 7.5% from last year. Total natural gas production volume was 1,315.7 billion cubic feet (Bcf) and the number of producing wells in 2Q17 was 7,853. Perhaps the biggest news is that 2Q17 saw the highest quarterly production–ever. Another interesting fact from the latest report: Four counties (Susquehanna, Washington, Bradford and Greene) comprised two thirds (68%) of statewide production. All counties except Greene and Lycoming registered production gains. The #1 county for natgas production in 2Q17? Susquehanna County. The #1 driller in that county? Cabot. You might say, with some justification, that the success of Cabot’s drilling program in Susquehanna County has translated into success for all of Pennsylvania…
    Read More “PA 2Q NatGas Production Report – Another New Record”

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    Potter County, PA Could Support 3K+ Shale Wells, Theoretically

    When it comes to shale drilling in the northern-tier of Pennsylvania, counties like Susquehanna (#1 producing county in the state), Bradford (#3 producing county) and event Tioga (#7 producing county) may come to mind. But what about the county west of Tioga–Potter County? Potter isn’t even in the top 10 producing counties in the state. But that doesn’t mean there’s not shale drilling activity. In July MDN reported that JKLM Energy (owned by Buffalo Bills owner Terry Pegula) is in the process of drilling a dozen Utica wells in Potter this year (see JKLM Drilling 12 Utica Wells in Potter County, PA This Year). The residents in the county are being proactive about promoting shale drilling in Potter. They’ve formed the Potter County Natural Gas Resource Center Steering Committee, complete with its own website. At a recent meeting of the Steering Committee, Penn State’s Jim Ladlee told attendees that Potter County could, theoretically, support 3,000+ shale wells. That certainly doesn’t mean it will ever see that many, but what it does indicate is that there is potential in Potter County far beyond the dozen or so shale wells currently planned. Here’s a report from the meeting…
    Read More “Potter County, PA Could Support 3K+ Shale Wells, Theoretically”

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    South Jersey Resources to Manage NatGas Supply for W PA Elec Plant

    South Jersey Resources Group has cut a five-year deal to provide natural gas for the Hickory Run Energy Station in Lawrence County, PA. Just two weeks ago MDN told you that the Hickory Run Energy Marcellus gas-fired electric plant planned for Lawrence County appears to be active and moving forward once again (see Signs of Life in Lawrence County, PA NatGas-Fired Electric Plant). Tyr Energy, a subsidiary of ITOCHU Corporation, purchased the Hickory Run Energy project in 2016 from LS Power Development. South Korea’s KB Asset Management announced they are investing $150 million in the project, which we said is “a sure sign that the pieces are now coming together for construction to begin.” Little did we know how prophetic those words were. Two days later, another report in the Korean Investors publication reported that French banking giant BNP Paribas has originated $460 million worth of loans for the project–of which the KB Asset Management investment is part (see Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?). The article also reported, “Ground has been broken for the plant.” Cool. Now another piece of this fast-moving puzzle falls into place. South Jersey Resources will contract for and supply natural gas to the plant, when it fires up…
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