CEA Launches Non-partisan “Campaign for America’s Energy” in PA
Today is election day across the U.S. It is an “off-year” election, meaning no national elections on the ticket–only state and local elections. Last week, in advance of today, the Consumer Energy Alliance (CEA) launched a non-partisan “Campaign for America’s Energy” across 12 key states, including Pennsylvania. The campaign aims to educate families, businesses, and state and local lawmakers about the benefits of energy production and delivery, without getting bogged down in contentious politics–IF that’s even possible! CEA is making a good-faith effort at it. MDN editor Jim Willis interviewed CEA’s president, David Holt, back in 2014. You can listen to that interview here. As part of the the CEA campaign, the organization reached out to every single PA state legislator, sending them a letter (below). CEA is an “all of the above” energy organization–interested in fossil fuels AND renewables. We find their approach refreshing, and their willingness to reach across the isle and at least attempt to have a dialog with antis, admirable…
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We find this story amusing. A group of left-leaning Catholic nuns in Lancaster County, PA, whipped up by radical environmentalists with ties to Big Green organizations, got it into their heads to try and block a very-safe natural gas pipeline from crossing their property–the Atlantic Sunrise Pipeline being built by Williams. The Sisters call themselves Adorers of the Blood of Christ. We call them Sisters of the Corn, because they put a couple of wooden park benches in a cornfield on their property (leased to a local farmer), christening it a “chapel” and claiming because the pipeline would run through the middle of their so-called chapel, building a pipeline is a violation of freedom of religion. In September a federal judge tossed the lawsuit (see 
An off-hand comment by a Pennsylvania Gov. Wolf staffer has landowners in northeast PA hopping mad–and with good reason. Speaking on the topic of PA landowners getting screwed out of royalty payments by drillers deducting inflated post-production costs (sometimes sending royalty statements where landowners OWE the drillers money!), Wolf deputy policy director Sam Robinson said this: “I think there was a crescendo of that kind of claim in 2015 to 2016…There’s been real movement in a positive direction on that issue.” Really? Not according to Bradford County Commissioner Doug McLinko and National Association of Royalty Owners (NARO) PA president Jackie Root. Not only is the issue not resolved, but the industry, under the prompting of EQT, snuck through an “environmental rider” in the recently passed-and-signed-into-law Fiscal Code bill (called Section 1610) that gives drillers a back door to reactivate old, non-producing wells after they have not been producing (and the lease considered terminated) under certain conditions (see 
Although there is still quite a bit less drilling than there was in 2014-2015, for a number of reasons, there are plenty of jobs to be had in the Marcellus/Utica Shale–especially in southwest PA. Companies that do work in the industry held a job fair last Thursday night at the Deer Lakes High School, looking for truck drivers, roustabouts and construction workers. Seems like a week doesn’t go by now that we don’t read about a job fair somewhere in the Pittsburgh region. Yes, there may be less drilling, but there’s still plenty of jobs to be filled, especially with Shell’s cracker plant construction ramping up. Below is news about last week’s job fair–who was looking, and what they’re willing to pay…
Recently the profoundly biased mouthpiece for Big Green groups, PBS StateImpact Pennsylvania, ran an article about the political fallout around the construction of what will be Pennsylvania’s largest natural gas-fired electric generating plant, located near Scranton. Invenergy is currently building the Lackawanna Energy Center, a 1,480 megawatt plant in Jessup, PA that will cost “well over $1 billion” according to an exclusive MDN source working on the project. The PA Dept. of Environmental Protection (DEP) approved the plant in December 2015 (see 
Exciting! We have a brand new pipeline project to tell you about–located in the Greater Philadelphia area. Although the project is new, the pipeline is old–already in the ground. Talen Energy, birthed in June 2015 from a combination between PPL Energy Supply and certain assets of Riverstone Holdings, is one of the largest competitive energy and power generation companies in North America. Talen’s core business is building and operating electric generating power plants. One of the assets Talen inherited in the merger is an 84-mile pipeline called the Interstate Energy Company which runs from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook. Talen announced yesterday they’ve sold the Interstate Energy Company (the pipeline) to Adelphia Gateway, a subsidiary of New Jersey Resources, for $189 million. The northern 34 miles of the pipeline was converted to flow natural gas back in 1996. The southern 50 miles currently flows oil, but Adelphia (NJ Resources) announced yesterday they will convert the oil portion of the pipeline to instead flow natural gas. The bottom line is that a wide swath of Greater Philly is about to get a new source of clean-burning, abundant fracked PA natural gas…
The odious Sierra Club is at it again. Using what appears to be endless supplies of money from people like the Rockefellers, the Sierra Club, along with a mishmash of other radical environmental groups, filed an emergency motion in federal court on Monday, asking the court to stop any further work on the Atlantic Sunrise Pipeline. Atlantic Sunrise is 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. Williams, the company building/owning the project, broke ground in September (see 
The Pennsylvania Dept. of Environmental Protection (DEP) continues its quest to put Mariner East 2 (ME2) Pipeline construction under a microscope. Two days ago MDN told you that the DEP had issued a Notice of Violation (NOV) for ME2 work in Lebanon County, PA, for spilling LESS THAN 1 gallon of non-toxic drilling mud (see 
UGI is a major utility company in Pennsylvania, providing natural gas and electric service to 700,000 Pennsylvania residents across the state. UGI, via its Energy Services subsidiary, operates natural gas storage facilities, compressor stations, LNG plants and local pipeline gathering systems. UGI operates several gathering systems in northeastern PA. Yesterday the company announced is has purchased an existing gathering system from Rockdale Marcellus for an undisclosed sum. The Rockdale gathering system consists of 60 miles of gathering lines–along with dehydration and compression facilities–located in Tioga, Lycoming and Bradford counties in northeast PA. The system was purchased, on paper, by UGI subsidiary Texas Creek, so the gathering system has been rebranded UGI Texas Creek. MDN has a map of the new system below…
Normally when you read about a raucous crowd at a public meeting dealing with shale gas, it’s raucous because of misbehaving antis. This time the shoe is on the other foot. Huntley & Huntley has plans to drill four shale wells in Upper Burrell Township (Westmoreland County), PA. As MDN reported in June, a landowner in Upper Burrell filed an appeal against Upper Burrell’s zoning ordinance that allows drilling in rural, agricultural districts (see 
Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry and continues to display their hostility in court. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see 
We chalk this one up as outrageous. The Pennsylvania Dept. of Environmental Protection (DEP) has just shut down further drilling for the Mariner East 2 Pipeline project at Snitz Creek in Lebanon County, PA–because of a “less than one gallon” spill of non-toxic drilling mud. Drilling mud is composed of bentonite–the same clay compound used in kitty litter, toothpaste and cosmetics. A spill of less than a gallon is NOTHING. It’s not even worth reporting. Yet Sunoco Logistics, the company drilling, was honest and reported the “inadvertent return” as it is called. And because Sunoco previously had another small spill at the same location, the DEP, bowing to pressure from radical environmental groups, has halted any further horizontal directional drilling (HDD) work at the Snitz Creek location. This is bizarre, but perhaps not unexpected. It all stems to a deal Sunoco made with the devil…
Texas-based Newpark Resources, a drilling fluids and specialty services company for the oil and gas industry, announced yesterday it is buying Well Service Group located in Robinson Township, near Pittsburgh, for $75 million. Well Service Group, a containment and well site service company, was founded in 2012 and has sold and serviced equipment for Newpark from the beginning. So it seems like a natural marriage. It is one company (Newpark) buying out one of its best distributors (Well Service Group). No word on potential layoffs due to the buyout, but we doubt there will be any. This is a relatively small deal as deals go in the oil patch…
A cabal of three, rabid, radical so-called environmental groups are once again trying to obstruct the legally-permitted Mariner East 2 (ME2) natural gas liquids pipeline project in Pennsylvania. Clean Air Council, THE Delaware Riverkeeper and the Mountain Watershed Association filed a motion with the PA Environmental Hearing Board, a special court set up to hear appeals of decisions made by the Dept. of Environmental Protection, to revoke permits previously issued by the DEP for the ME2 project–WITHOUT holding a trial. The groups are attempting to rush through a decision to block work on the pipeline by claiming there are “facts” in the case “not in dispute” and that the judge can simply take the reigns of justice into his own hands and rule by fiat. The heart of their case is that DEP granted federal water crossing permits for ME2 for “exceptional value” swamps, er, a, wetlands–and ya know, that just ain’t right. Even the attorney for the odious (and odoriferous) Clean Air Council says the judge won’t rule on the motion for at least two months–which is about the time the pipeline will be done anyway. So we’re not quite sure what these rabid groups hope to accomplish with their latest stunt. Perhaps it’s yet another fundraiser? The holidays are fast approaching…
An extensive article in the Pittsburgh Business Times calls attention to the developing shortage of qualified construction workers in southwest Pennsylvania. So far the need for workers has been met, but it’s not hard to predict that as Shell ramps up its “vertical construction” (building the buildings to house the cracker) this fall, that shortages will happen–not only for Shell’s project, but for other expansion projects in the area as well. Shell is the anchor. There are dozens (perhaps hundreds) of other businesses that will launch, relocate or expand to take advantage of Shell’s forthcoming supply of cheap plastics. All of those projects will create thousands of jobs in the construction industry. Various colleges and unions have launched training programs to meet the need for electricians, carpenters, iron workers, steamfitters, insulators and sheet metal workers. Question is, will it be enough?…
Cabot Oil & Gas, one of our favorite Marcellus drillers, released its third quarter 2017 update on Friday. Some of the things we learn from the report and the analyst phone call held by Cabot’s top brass: Production grew another 12% during 3Q17. In the Marcellus, Cabot’s natural gas production averaged just over 2 billion cubic feet per day gross (Bcf/d). If you use U.S. Energy Information Administration numbers from the most recent monthly drilling report, Cabot’s 2 Bcf/d equals 8% of all Marcellus production, and 3.3% of all shale gas production in the U.S! That’s truly amazing, considering it all comes from Susquehanna County (with a couple of wells in neighboring Wyoming County), in northeast PA. Profitability returned in 3Q17 with net income of $32 million, versus a net loss of $16.7 million in 3Q16. In the Marcellus, Cabot drilled and completed 13 net wells and placed online into production 15 net wells. They now have 49 “fourth generation” wells online and producing at an average of 4.4 Bcf per 1,000 feet. They also have 12 “fifth generation” wells online. One of the highlights for Cabot during 3Q17 was the announcement that Williams is now building their $3 billion, 198-mile Atlantic Sunrise natural gas pipeline project. Cabot says when the pipeline is done in mid-2018, Cabot will flow 1 Bcf/d of gas to new markets. Cha ching! New markets equal higher prices and more profitability for the company. Below is the full 3Q17 update, followed by remarks from CEO Dan Dinges made during the analyst call…