Pennsylvania

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    Monroeville, PA Close to Passing Restrictive Seismic Testing Ord.

    Monroeville, PA (suburb of Pittsburgh) is making moves to restrict seismic testing within municipal boundaries–a move meant to restrict future shale well drilling in the area by Huntley & Huntley. In a July story, MDN brought you the news that Cougar Land Services, a subcontractor working with Huntley & Huntley, is planning to conduct seismic testing in two rural areas of the municipality, including “small portions” of Monroeville’s northernmost and southernmost tips (see H&H: Seismic Testing Coming to Monroeville, Not to Oakmont). Monroeville Council recently voted to publish a draft of its new seismic testing ordinance for 30 days of public comment, which means they intend to adopt it following that period. The restrictions are meant to hassle anyone wanting to conduct seismic testing, i.e. Huntley & Huntley. Which is kind of sad, as H&H is headquartered in Monroeville. Kind of like spitting in the company’s face. Perhaps H&H should consider moving? At any rate, H&H says they are reviewing the ordinance now and if it “is outside the state parameters,” H&H will litigate…
    Read More “Monroeville, PA Close to Passing Restrictive Seismic Testing Ord.”

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    PA’s Regulatory Mess Slows Marcellus Drilling – Time to Fix It

    Since Tom Wolf assumed office as governor of Pennsylvania in January 2015, the state Dept. of Environmental Protection (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). Since DEP can’t seem to fix its own mess, the Senate is willing to “lend a hand” to help them get it done. Kathryn Klaber, former president of the Marcellus Shale Coalition and now CEO of The Klaber Group, writes about the necessary revisions to PA (and the country’s) regulatory mess. She makes the point loud and clear that tweaking regulations is not an attack on the environment, as radicals seek to spin it…
    Read More “PA’s Regulatory Mess Slows Marcellus Drilling – Time to Fix It”

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    Drumbeat Continues: Tax PA Shale & Give Money to Teacher’s Unions

    The steady, daily drumbeat coming from mainstream (i.e. fake) news outlets in Pennsylvania is that the PA House of Representatives is sitting on its hands, dithering, not doing anything about the so-called budget crisis. The fix is, of course, for the House to accept and pass the ludicrous plan from traitorous Senate Republicans that will tax natural gas a total of four times, with four separate taxes (see PA Business Roars Disapproval of Senate’s Plan to Tax Energy 4X). As we have pointed out, for years, PA Gov. Tom Wolf wants to slap a severance tax on top of an impact tax on Marcellus gas as a way of raising money to give to teacher’s unions (i.e. “education”). We’ve shouted this until we are hoarse, yet no one seems to notice that Wolf is attempting political payback by penalizing one industry in favor of another. From time to time we revisit the topic, using mainstream media’s own words against them–to indict them. Here’s yet another example. So-called Rev. Gregory Holston (from Philadelphia) in addressing a rally attempted to make the case that not adopting a Marcellus gas tax is tantamount to racism–because educational funding in PA is “unfair” and the state doesn’t spend enough on minorities in places like Philly. Standing right next to the “Reverend” at the rally was the president of the Philadelphia Teacher’s Union who said, “we are more than happy to lead the charge for a shale tax.” Do you need any more proof to believe our statement that the severance tax is nothing more than a way to funnel money to teacher’s unions?…
    Read More “Drumbeat Continues: Tax PA Shale & Give Money to Teacher’s Unions”

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    Shell Pays Varying Amounts for Ethane Pipe Easements – Latest

    MDN has been tracking the prices paid by Shell to landowners to run an ethane pipeline under their land to feed the might cracker plant the company is just now beginning to build in Beaver County, PA. Why? So landowners in Beaver (and other locations) have a useful metric for judging the offers they receive. To be fair, a company that wants to run a local gathering pipeline across someone’s land will pay a lot less than Shell is willing to pay–given you can’t move the cracker plant. Interstate pipelines will likely pay something less too. But still, we find it interesting and useful to know what Shell is up to in Beaver. We don’t have a lot of data points, yet. In June, we learned that Shell paid roughly $75 per foot for 3,138 linear feet of pipeline space in Greene Township (see New Easement for Shell Ethane Cracker Pipeline Reveals Price Paid). In July, Shell paid ~$43/foot for 2,675 linear feet of pipeline space (see Latest Amount Shell Paid for Ethane Pipeline Easements Goes Down). We now have two more data price points to share with you…
    Read More “Shell Pays Varying Amounts for Ethane Pipe Easements – Latest”

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    One of Nation’s Largest NatGas Microgrids Coming to Philly Navy Yard

    We’re starting to see more and more news about natural gas-fired microgrids, used for “peaking”. Microgrids are small electric generating plants, most often powered by natural gas. They usually produce a few megawatts of electricity. The concept of “peaking” means that during times of high electricity demand, these small microgrids kick on and produce electricity to help meet the demand. Although New York Gov. Andrew Cuomo doesn’t want fracking in the Empire State, he’s in the midst of paying for 11 microgrids throughout the state–all of them using natural gas, mostly fracked gas from Pennsylvania (see NY Building Not Just One, but Eleven (!) NatGas-Fired Micogrids). These microgrids are an important new market for Marcellus/Utica Shale gas. So we perked up when we spotted a story about and press release from Ameresco, headquartered in Massachusetts, that is building a new 6-megawatt microgrid for peaking electricity at the Philadelphia Navy Yard. It will, according to Ameresco, “anchor one of the largest private microgrids in the United States.” Although the announcement doesn’t say, we’re 99.99% sure the gas that will feed it will come from PA’s Marcellus Shale. In addition to the microgrid in Philly, Ameresco also announced a contract in northeast PA, with Luzerne Community College (Wilkes-Barre) to replace 21 outdated electric-resistance heating Roof Top Units (RTU), Heating and Ventilation Units (H&V), and Air Handling Units (AHU) with 21 new, natural gas-fired RTU’s and AHU’s. Yep, you read that right–dumping electric units for natgas units. How “cool” is that? (Pun intended)…
    Read More “One of Nation’s Largest NatGas Microgrids Coming to Philly Navy Yard”

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    PA House Beginning to Cave on Severance Tax? Maybe…

    MDN has covered the ongoing budget debate in Pennsylvania for months. The PA Senate and House are controlled by Republican majorities–but not necessarily conservative majorities. The Republicans fell into a trap set by the Democrats. They passed a ~$32 billion budget with only enough revenue to pay for $30 billion–meaning there’s a $2 billion gap that needs to be filled. Instead of doing the adult thing–cut spending–they decided to allow more spending and figure out how to pay for it “later on.” Later on came, and of course pressure intensified to punish a single industry–natural gas–in order to make up the shortfall. At the end of July MDN brought you the sad news that Republicans in the Senate sold out and voted for a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Now the House remains. Will they sell out too? Under the leadership of Speaker Mike Turzai, we had hoped it would not happen. But a comment made yesterday by House Majority Leader Dave Reed has us wondering. Reed said higher taxes on energy sources used by homeowners, like natural gas, telephone, etc. (called a gross receipts tax) is going nowhere fast. However, as for a Marcellus Shale severance tax, Reed indicated they may deal. Although not an exact quote, one news source said Reed expressed this sentiment in his remarks yesterday: “A tax on Marcellus Shale natural gas extraction, which was in the Senate revenue package and projected to raise about $108 million in the current budget year, could come into play in a compromise plan.” The compromise appears to be if Republicans can get Democrats to privatize state liquor sales and/or legalize video gaming terminals, they would be willing to throw the Marcellus industry under the bus with a severance tax. Nice people, those House Republicans. Let’s hope it’s only Reed who feels that way…
    Read More “PA House Beginning to Cave on Severance Tax? Maybe…”

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    Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done

    Those opposing two major Energy Transfer projects–Rover Pipeline and Mariner East 2–will not be happy with the good news coming from ET this week. The company issued its second quarter update and held a conference call yesterday. During the call we learned that Phase 1 of Rover, a $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, is “substantially complete” with Phase 1A expected to be done next week and online asap. Phase 1A stretches from Cadiz to Defiance, which is most of Ohio. Phase 1B is a short segment from Seneca to Cadiz, and once ET gets clearance from FERC to drill horizontally under Captina Creek, it will only take them about 40 days to complete Phase 1B. If ET can convince FERC to allow them to restart more horizontal directional drilling (HDD) work, Phase 2 will be done soon as well–and the entire project will be up and running by the end of the year. More good news for Rover: The temporary ban on HDD work for Rover in two West Virginia counties that began two weeks ago has now been lifted by the WV Dept. of Environmental Protection. As for ET’s Mariner East 2 (ME2) pipeline project that stretches across Pennsylvania, 80% of the pipeline has been strung, more than 70% is welded and over half has been lowered in and covered up. As we reported yesterday and again today, ET subsidiary Sunoco Logistics Partners (building ME2) has brokered a deal with several radical environmental groups that will slow the project down some, but slow and done is better than no progress at all. Here’s an update on the good news about Rover and ME2…
    Read More “Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done”

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    Rex Energy 2Q17: Sells Waterline, Deal with BP to Market NGLs

    Earlier this week Rex Energy issued its second quarter 2017 update. During 2Q17 Rex drilled 2, completed 6 and put online into sales 4 wells in their Butler County, PA acreage. They also began drilling a new 4-well pad in Butler. In the company’s Carroll County, OH acreage, Rex drilled a 3 wells on a single pad. The big news from the update was a deal with BP to market Rex’s natural gas liquids (or C3+) production, and the sale of a water pipeline owned by Rex in Salineville, OH for $8 million. Rex’s finances didn’t do so well. In 2Q17 the company lost $10 million versus making a $16 million profit in 2Q16. Production picked up a bit, from 173.4 million cubic feet equivalent per day (MMcfe/d) in 1Q17 to 177.1 MMcfe/d in 2Q17. The official statement said 2Q17 production was “constrained” during the quarter “due to unplanned maintenance downtime in the company’s midstream services.” Which means they had hoped it would have been higher than 177.1 MMcfe/d. Looking forward to 3Q17 Rex says they plan to bring 12 new wells in Butler County online…
    Read More “Rex Energy 2Q17: Sells Waterline, Deal with BP to Market NGLs”

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    Judge Approves Sunoco Deal w/Devil; Radical Groups Brag About Win

    Yesterday MDN brought you the news that Sunoco Logistics Partners had cut a deal with the devil, meaning three radical Big Green groups, to slow down but eventually complete work on the Mariner East 2 natural gas liquids (NGL) pipeline project in Pennsylvania (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). The deal means Sunoco has to re-submit plans for underground horizontal direction drilling (HDD) in 47 locations to the PA Dept. of Environmental Protection (DEP) for review. The DEP will then get 21 days to review those re-worked plans. But the plan needed to be blessed by Environmental Hearing Board Judge Bernard Labuskes Jr. first. Yesterday Judge Labuskes gave the plan his stamp of approval. Now the three Big Green groups–Clean Air Council, Mountain Watershed Association, and Delaware Riverkeeper Network–are bragging about their victory. High-fiving each other and taking pot shots at the DEP and one of their own–Democrat Gov. Tom Wolf. Wolf is not “pure” enough for Big Green nutters. Only a complete shut-down of the project would be acceptable, which Wolf does not support. However, the Big Greeners are pragmatic. They’ll take half a loaf–in this case slowing the project down…
    Read More “Judge Approves Sunoco Deal w/Devil; Radical Groups Brag About Win”

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    NEPA School w/2 Marcellus Wells in “America’s Best High Schools” List

    In 2014 MDN told you about a rural school district in northeastern Pennsylvania–the Elk Lake School District in Susquehanna County–that had (gasp) drilled two Marcellus Shale wells right on the school campus (see Rural NE PA School Nets $1.7M in Royalties from 2 Marcellus Wells). Not only does that tiny school district still rake in the royalties, they also heat with natural gas (see Elk Lake School LOVES Their 2 Marcellus Shale Wells & Gas Heat). Now comes word that Elk Lake SD is in an elite group–recognized by U.S. News & World Report as among the top 6,041 “Best High Schools in America” for 2017. The U.S. News rankings look at data on more than 22,000 public high schools in 50 states and the District of Columbia. Schools were awarded gold, silver or bronze medals based on their performance on state assessments and how well they prepare students for college. Elk Lake made the cut–getting a bronze award–putting them in the top tier of schools in the country. We mention it for two reasons: (1) The revenue Elk Lake gets from their gas wells, and from saving money on heating with gas, is likely a big contributor to Elk Lake’s success; and (2) other school districts, like the Mars School District in Butler County, PA (adamantly opposed to shale drilling 3/4 of a mile away) can learn something from Elk Lake…
    Read More “NEPA School w/2 Marcellus Wells in “America’s Best High Schools” List”

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    Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2

    Energy Transfer’s Sunoco Logisitics unit has struck a deal with the devil–the devil being the Philadelphia-based (and odoriferous) Clean Air Council, THE Delaware Riverkeeper and Mountain Watershed Association–that will ultimately lift the current ban on underground horizontal directional drilling (HDD) for the Mariner East 2 NGL pipeline project. The three Big Green groups (well funded by colluding leftist organizations) filed an appeal with the Pennsylvania Environmental Hearing Board to block all HDD work following several drilling mud leaks, one of them fouling a water aquifer in Chester County (see Sunoco LP’s Generous Deal to Chester Co. Residents with Water Issues). The Hearing Board judge agreed and stopped all HDD work, temporarily (see PA Enviro Judge Puts 2-Week Pause on ME2 Pipeline Drilling). However, earlier this week the judge allowed a partial lift of the ban (see PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations). Sunoco and the Big Green groups have now “settled.” The terms of the “settlement” call for Sunoco to reevaluate and resubmit plans for HDD drilling at 47 locations for review by the Dept. of Environmental Protection (DEP). Landowners who live within 450 feet of a planned HDD site may request water well testing before, during and after Sunoco’s underground drilling activity. In return, the Big Green groups agreed to drop their appeal requesting no further HDD work. As deals with the devil go, perhaps this one isn’t so bad after all. However, we still question why the groups had standing to bring the action in the first place…
    Read More “Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2″

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    Cabot O&G Countersues Dimock Anti, Lawyers

    It’s about time. Cabot Oil & Gas is tired of being sued, and slandered, by people like Dimock resident Ray Kemble and his ambulance-chasing lawyers. So Cabot has sued back–for $5 million. Kemble lives in Dimock Township, in Susquehanna County, PA. Kemble and other families claimed Cabot’s drilling in the area (nearly 10 years ago) caused problems with their water wells–a claim strongly refuted by Cabot. Cabot settled with most of the landowners, including Kemble.
    Read More “Cabot O&G Countersues Dimock Anti, Lawyers”

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    PA Business Roars Disapproval of Senate’s Plan to Tax Energy 4X

    Yesterday a group of Pennsylvania business and economic leaders from trade associations representing thousands of PA businesses held a conference call to roar their disapproval of the GOP-led Senate plan to impose high/new taxes on energy in the Keystone State. Those on the call included: Gene Barr, president of the Pennsylvania Chamber of Business and Industry; Terry Fitzpatrick, president of the Energy Association of Pennsylvania; David Taylor, president of the Pennsylvania Manufacturers Association; Mark Chasse, treasurer for Industrial Energy Consumers of Pennsylvania; Stephanie Catarino Wissman, executive director of Associated Petroleum Industries of Pennsylvania; David Spigelmyer, president of the Marcellus Shale Coalition; and Dan Weaver, president of the Pennsylvania Independent Oil and Gas Association. A group of heavy hitters. Their message was loud and very clear: no new severance tax, no new gross receipts tax. To enslave Pennsylvanians with these taxes now–to fix a single year’s budget–would sacrifice PA’s economic future. Gene Barr pointed out the Senate plan taxes natural gas four different times: 1. when drillers drill a well (impact fee); 2. the gas coming out of the well (severance tax); 3. when the gas gets used by consumers (gross receipts tax); and 4. if drillers make a profit, their profits are taxed too (income tax). It is a plan crafted to satisfy Big Education–to funnel money to teachers, rewarding them for voting Democrat. How many times do we have to point out this is not compromise, it’s insanity!…
    Read More “PA Business Roars Disapproval of Senate’s Plan to Tax Energy 4X”

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    ‘Father of Marcellus’ Weighs in on Proposed Plum, PA 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 of them. 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). We expect the project in Plum will also encounter stiff opposition. The Pittsburgh Tribune-Review asked Terry Engelder, the now-retired Penn State University professor and geologist who first discovered the potential of the Marcellus (called “the Father of the Marcellus Shale”) to offer his opinion on the injection well proposal for Plum. Engelder’s advice to Penneco? “[B]e a little bit cautious because [you] don’t really know how the rock will respond to this foreign fluid”…
    Read More “‘Father of Marcellus’ Weighs in on Proposed Plum, PA Injection Well”

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    Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement

    Eastern Panhandle Expansion – click for larger version

    In April, MDN brought you the news that Columbia Pipeline (now owned by TransCanada) has filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in the Eastern Panhandle of West Virginia with the Columbia Gas Pipeline in Pennsylvania (see New 3.5 Mile Pipeline Project to Drill Under the Potomac River). The purpose of the Eastern Panhandle Expansion project is to deliver natural gas via local distribution channels (local utility Mountaineer Gas) to a new industrial facility in Berkeley County, WV, scheduled to open in Fall 2017, and to provide gas to other local businesses and residents in the Tri-State area. Most of the proposed pipeline crosses through a tiny sliver of Washington County, Maryland. The main “issue” with the project is that the pipeline will be drilled underneath the Potomac River, which serves as the border between WV and MD. That has radical anti-fossil fuelers in an uproar. As we pointed out in July, the project is in a fight for its life (see WV Fight Over Simple Expansion of Local Gas Delivery Pipeline). Lack of natural gas is strangling expansion in Jefferson County, WV. But that makes no difference to antis in Maryland who are kicking up a fuss and planning to stage a kayak protest in the Potomac. Below is an update on anti efforts to stop the project, and pro efforts to get it approved and built…
    Read More “Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement”

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    PA DEP to Hold Final Atlantic Sunrise Hearing, Antis Plan Walkout

    For those of us who have long supported the Williams Atlantic Sunrise Pipeline project, it seems like it has taken FOREVER for the Pennsylvania Dept. of Environmental Protection (DEP) to issue final water and air permits for the pipeline. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project, most of which will get built in northeast Pennsylvania. In an attempt to get the DEP moving, Williams co-hosted an event a few weeks ago in Wyoming County to pressure the DEP into granting final permits (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). Perhaps the event helped. On the very same day as the event, the DEP announced a supplemental 30-day public comment period to begin on July 22. During this time, the DEP will hold one final public hearing–for feedback on an Air Quality Plan Approval for construction activities related to Atlantic Sunrise. That final public hearing will be held on Monday, August 14, in Lancaster. The anti-pipeline group Lancaster Against Pipelines (organized by some of the same people who illegally protested against the Dakota Access Pipeline in North Dakota), are planning a mass temper tantrum at the hearing. They will stage a “walkout” at the meeting. Adults behaving like spoiled rotten children. We’ve come to expect it from them. MDN encourages pro-pipeliners (i.e. adults) to show up in large numbers so that when the 10-15 antis walk out, nobody will even notice…
    Read More “PA DEP to Hold Final Atlantic Sunrise Hearing, Antis Plan Walkout”