Pennsylvania

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    More Evidence PA House Repubs Beginning to Cave on Severance Tax

    We continue to read articles about the ongoing effort by Pennsylvania Democrats and some squishy Republicans to slap a severance tax on top of an existing impact tax on natural gas drilling in the Keystone State. As we pointed out yesterday, Philadelphia teacher’s unions are in the forefront of a plan to grab money from drillers and funnel it into the pockets of their members (see Drumbeat Continues: Tax PA Shale & Give Money to Teacher’s Unions). The PA Senate cooked up a horrible plan to implement a “modest” severance tax, along with a gross receipts tax that will tax natural gas again, at the consumer level (see Traitorous PA Senate Republicans Pass Severance Tax Bill). The PA House has stood firm, thus far, against the plan. But then we read PA House Majority Leader Dave Reed is beginning to cave (see PA House Beginning to Cave on Severance Tax? Maybe…). We’re now reading about other members, people we long thought solid, like Rep. Garth Everett (Lycoming County) who now says “The new tax on drilling remains an option.” REALLY disappointing, Rep. Everett. The way the conversation is now going, the House doesn’t have the stomach to slap a gross receipts tax (GRT) on natural gas, phones and electric–but they are A.OK with a severance tax. Since the GRT, under the traitorous Senate Republican plan, is supposed to provide around $400 million in revenue and the severance tax $100 million, what happens without the GRT? Will House Republicans ratchet up the severance tax even more? It’s rapidly turning into a mess. Below is the latest chatter we’ve found, along with a new letter from the Marcellus Shale Coalition to the House leadership warning of the precarious situation a new severance tax will create for future job and economic growth in PA…
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    Big Green Groups Stage Walkout at PA DEP Atlantic Sunrise Hearing

    Last night the Pennsylvania Dept. of Environmental Protection (DEP) held one final public hearing for the Williams Atlantic Sunrise Pipeline project–in Lancaster. As we previously reported, anti-fossil fuel nutters planned to gather prior to the meeting so they could choreograph a “walkout” of the meeting, as a form of protest (see PA DEP to Hold Final Atlantic Sunrise Hearing, Antis Plan Walkout). Indeed that is just what happened. A group of petulant babies got up during the meeting, theatrically put on surgical masks, and walked out. They then held their own meeting outside, to regurgitate the same lies and smears they’ve been spreading for months. Meanwhile, inside the meeting, the adults who remained spoke up about legitimate concerns with the project, which is why the meeting was held in the first place…
    Read More “Big Green Groups Stage Walkout at PA DEP Atlantic Sunrise Hearing”

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    Update on MarkWest Processing Plant Proposal for Smith Twp

    MarkWest facilities – click for larger version

    The MarkWest Harmon Creek Complex planned for Washington County, PA continues to make progress. Last fall NGI’s Shale Daily reported that MarkWest planned to build a new processing plant to process natural gas for Range Resources (see MarkWest Building New Processing Plant in Washington County, PA). But following the initial announcement, all went quiet and the project went on “indefinite hold.” In May of this year, the project restarted when MarkWest officials attended a Smith Township planning commission meeting (the town where it will get built) to discuss the project (see MarkWest’s Washington, PA Processing Plant Plans Reactivated). According to MarkWest, plans call for initially building one cryogenic plant and one de-ethanizer. Eventually MarkWest wants to build four cryogenic plants and two de-ethanizers at the Harmon Creek Complex. MarkWest reps were back before Smith Township supervisors on August 2nd to discuss more about their plans. The town must grant a “conditional use” permit before the project can get built. Before that happens, the town wants certain things in writing…
    Read More “Update on MarkWest Processing Plant Proposal for Smith Twp”

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    Signs of Life in Lawrence County, PA NatGas-Fired Electric Plant

    A Marcellus gas-fired electric plant planned for Lawrence County, PA, which had been dead, has roared back to life and now looks like it will get built. In February 2013 MDN first told you about a plan by LS Power Development to build Hickory Run Energy–a $750 million electric generating plant at a former manufacturing site along the Mahoning River in North Beaver, PA (see NW PA Town Approves Site for Marcellus-powered Electric Plant). The 900-megawatt plant, when built, would be powered by Marcellus Shale natural gas. A couple of months after the initial announcement, there was some early opposition to the plant (see Supporters, Detractors Meet on Proposed NatGas Power Plant in PA ). The original plans called for Hickory Run to be online and operating sometime in 2016. That never happened. It was at that point the story went cold for us. What we didn’t realize was that the project got sold by LS Power to a subsidiary of Japan’s second largest corporation. In June 2016, Tyr Energy, a subsidiary of ITOCHU Corporation, announced they had purchased the project and that they hoped to have financing and paperwork done by June of this year to begin construction this fall. We don’t know if that schedule still holds, but we do know that South Korea’s KB Asset Management just announced they are investing $150 million in the project–a sure sign that the pieces are now coming together for construction to begin on the Hickory Run Energy plant…
    Read More “Signs of Life in Lawrence County, PA NatGas-Fired Electric Plant”

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    PennEast Pipeline Asks FERC for Expedited Final Approval

    Jeff Tittel, the head of the New Jersey Sierra Club, last week called President Trump a “fossil fool in the White House” and panned Trump for doing his Constitutional duty in appointing new members to the Federal Energy Regulatory Commission (FERC). Tittel’s latest titillation came in response to PennEast Pipeline sending a letter to FERC last Thursday requesting the agency move forward posthaste with granting the project a final certificate to proceed to construction–something that terrifies Tittel and his sidekick, THE Delaware Riverkeeper, Maya van Rossum. Tittel and van Rossum have staked their reputations and the reputations of their anti-fossil fuel groups on stopping PennEast. So once the bulldozers fire up and begin digging trenches, it’s all over for them. They might actually have to find real jobs. Below is PennEast’s request to FERC along with the instantaneous (and paranoid) reaction from several Big Green radical groups….
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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″