Pennsylvania

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    Civil Debate in Plum, PA re Proposed Wastewater 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. 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). Although we expected a huge push-back in Plum, if a meeting held yesterday to debate the project is an indicator, perhaps the push-back won’t be as much as we thought. Yesterday a panel of experts–both pro and con–interacted with a crowd of around 100 people in Plum Council’s chambers. One of the people on the pro side was MDN friend Dave Spigelmyer, president of the Marcellus Shale Coalition. One of the people on the con side was Doug Shields, former Pittsburgh councilman and now paid agitator/protester for the radical Food & Water Watch. You might think there would be fireworks at such a meeting–but there wasn’t. The biggest surprise of the meeting is that there were no surprises–it was civil. No shouting. No theatrics. No loud-mouthed protesters. Such a project comes with serious questions and concerns–like earthquakes and water contamination. Those issues and more were addressed at the meeting…
    Read More “Civil Debate in Plum, PA re Proposed Wastewater Injection Well”

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    PA Sending Wrong Message to O&G, Petrochemical, Manuf Industries

    Charlie Schliebs – Stone Pier Capital Advisors

    Over the years MDN editor Jim Willis has had the pleasure of meeting many great people–both in the shale industry and in other industries that overlap with shale energy. One such person is Charlie Schliebs, managing director of the Pittsburgh-based Stone Pier Capital Advisors. Charlie is a long-time MDN subscriber (and friend). He’s a money guy, having had a hand in a number of deals to finance Marcellus/Utica drilling. He’s also smart, and a mover-and-shaker–well-connected with many of Pennsylvania’s top business and political leaders. Recently Charlie composed an editorial to share with his clients and friends. The original intent was to write about the severance tax and the sellout by PA’s Republican Senate. However, the editorial grew to encompass the state’s treatment of the petrochemical and even construction industries. We asked Charlie for permission to bring you his editorial, and he graciously agreed. In it, he offers some insight into his original support for Tom Wolf during the last gubernatorial election, his profound disappointment with Wolf (be sure to read about the event Charlie hosted in which then-candidate Wolf participated and made an arrogant fool of himself), and how Wolf settled on a 5% severance tax plan, based on an off-hand remark by EQT. This is great stuff–real behind-the-scenes stuff only someone like Charlie can write about. Take time to read the whole editorial…
    Read More “PA Sending Wrong Message to O&G, Petrochemical, Manuf Industries”

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    Corrupt DEC Bans PA Marcellus Brine in NY, Tightens Other Brine Use

    The Andrew Cuomo-corrupted New York State Dept. of Environmental Conservation (DEC), run by NRDC gang member Basil Seggos, has just slammed the door on New York towns using brine from the Pennsylvania Marcellus. Earlier this week the DEC posted new final regulations as part of “strengthening” the state’s solid waste regulations, referred to as Part 360. Brine is another name for produced water. When you drill a hole deep in the ground, well below the water table (which sits at maybe 200 feet down), over time water from the depths (a mile or more down) will come to the surface. This is not wastewater used in fracking (called flowback), but naturally occurring water (brine). It’s called brine because it contains a lot of minerals–far “saltier” than ocean water. There are a number of ways to dispose of all that water coming out of drilled wells for years after they are drilled–dispose of it via an injection wells, recycle it, or in some cases, treat it and use it as a deicer on roadways. Many towns use brine for that purpose. The DEC’s new regulations stipulate that if a town wants to use brine from conventional oil and gas wells, that’s fine (with certain restrictions). But if the brine comes from a Marcellus Shale well–it’s banned. Keep in mind there is virtually no chemical difference between the two. Which leads us to the conclusion that this is one more very intentional swipe at the shale industry by a state that is closed for business…
    Read More “Corrupt DEC Bans PA Marcellus Brine in NY, Tightens Other Brine Use”

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    Community College of Beaver County Preps Students for Cracker Jobs

    Looking to land a job at Shell’s $6 billion ethane cracker plant when it’s up and running in a few years? A new program set up by Shell with the Community College of Beaver County (CCBC) may give you a leg up. CCBC offers a program in process technology that leads to an associate’s degree. As of this spring, 45 people were enrolled. CCBC expects 70 people to enroll this fall. CCBC’s process technology degree is just one part of their effort to train people for advanced manufacturing careers with Shell and other petrochemical companies. CCBC is partnering with businesses, nonprofits, other colleges to form the Tri-State Advanced Manufacturing Consortium which will help prepare students and retrain workers to meet the needs of energy and manufacturing companies throughout the region. More deets on getting trained for a future cracker job…
    Read More “Community College of Beaver County Preps Students for Cracker Jobs”

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    Northeast Energy Management Goes Bankrupt; Auctioning Rigs, Assets

    It’s always sad when we have to report that a Marcellus/Utica-focused company goes out of existence. Northeast Energy Management, which operated under the name Northeast Energy with headquarters in Indiana, PA, claimed to be “a leader in tophole drilling in the Marcellus/Utica shale” and “a preferred contractor for many of the largest oil and natural gas exploration and production companies.” Perhaps it was, but it is no more. The company filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court – Western District of Pennsylvania back in January of this year. As of yesterday the court ordered the company’s assets to be liquidated at auction. A live and online auction will take place next week, on Sept. 27, featuring two Schramm drilling rigs, Detroit Diesel engines with pipe handlers, trailer mounted and skid mounted air compressors, boosters, generators, accumulators, trailers and a variety of tractors, pick-up trucks, construction equipment and other drill site related equipment. Here’s the the details about the auction and how you can participate…
    Read More “Northeast Energy Management Goes Bankrupt; Auctioning Rigs, Assets”

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    New MarkWest Processing Plant Approved by Smith Twp in SWPA

    Smith Township, Washington, PA

    In August MarkWest Energy (now part of MPLX) briefed Smith Township (Washington County, PA) officials on plans to build a new natural gas processing plant (see Update on MarkWest Processing Plant Proposal for Smith Twp). The project was first introduced last fall, but then went quiet until May of this year. MarkWest plans to initially building one cryogenic plant and one de-ethanizer at what it calls the Harmon Creek Complex. Eventually MarkWest wants to build four cryogenic plants and two de-ethanizers at complex. Smith officials understandably had questions and wanted certain things in writing before they would consider issuing a “conditional use” permit for the project. Apparently the questions got answered. On Monday, Smith supervisors voted 3-0 to approve the project. However, the backhoes are not firing up just yet. Before the project can get built, the PA Dept. of Environmental Protection must issue an air permit (GP-5) for the project. Anti fossil fuelers were not happy with Smith’s approval, claiming MarkWest has been hiding the full scope of the project…
    Read More “New MarkWest Processing Plant Approved by Smith Twp in SWPA”

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    PA Gov. Wolf Visits NEPA to Barter for Marcellus Severance Tax

    Hoping to pressure the Republican legislature to adopt a budget with a new severance tax, Pennsylvania Gov. Tom Wolf (Democrat) visited two towns in northeast PA yesterday that are in the heart of Marcellus Shale country. One of those towns is the bucolic village of Tunkhannock, in Wyoming County. MDN editor Jim Willis visited Tunkhannock a few months ago to attend an Atlantic Sunrise Pipeline rally (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). During his visit yesterday, Wolf said there has been progress in the budget talks, but things are stalled at the moment. The big point Wolf made, the reason for the visit, is that $1 million of state money promised to Tunkhannock to run gas lines in the area for local utilities to tap into abundant, local Marcellus gas is on hold because of the budget impasse. Wolf was dangling a $1 million carrot, implying that if the local yokels want that money to run new gas lines, they dang well better support his plan to pass the budget–a plan that includes a severance tax on the Marcellus. That’s how we read it. From Tunkhannock, Wolf traveled north to Montrose, in Susquehanna County, where he visited the Endless Mountains Hospital–a hospital largely built with Marcellus money from Cabot Oil & Gas. If Wolf’s severance tax had been in place, that hospital would not have gotten built…
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    Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic

    Rich, snobbish homeowners in an “upscale” Philadelphia suburb development are asking an appeals court to stop Sunoco Logistics from building the Mariner East 2 pipeline through the edge of their high-priced development because, they claim, the digging is disturbing the dirt (which is what digging does) and disturbing the dirt is causing lead and arsenic to become dislodged. The lead and arsenic are supposedly in the dirt as a result of pesticides used when the land was an apple orchard. The claim is flat out BS–Barbara Streisand. The Andover Homeowners Association in Thornbury Township (Delaware County) is the same group that a few weeks ago acted like five year-olds by intentionally stepping over a painted line put there to protect them from a ME2 construction zone (see Philly Antis Step Over the Line (Literally) at ME2 Pipeline Site). Spoiled rotten children grow up to be spoiled rotten adults. Here’s the latest tactic to stop a pipeline from the gentry class–just because they don’t like how digging a pipeline makes their development look to the neighbors…
    Read More “Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic”

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    PA Dem Senator Calls for “Study” to Address DEP Permit Delays

    A Pennsylvania Senator from Wilkes-Barre, John Yudichak (Democrat) has floated a “memoranda” among his Senate colleagues asking them to join him in sponsoring a resolution (copy below) for an “independent performance review” of the state Dept. of Environmental Protection (DEP) and its shale permitting program. Since Tom Wolf assumed office as governor of Pennsylvania in January 2015, the 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). Senators included a provision to have third party contractors–people outside of the DEP–review applications at the DEP, including permits for oil and gas drilling, when the DEP can’t review those applications in a timely manner. There’s also a provision that certain permits, like those granted to drillers for sediment and erosion, will automatically be granted if the DEP drags its feet and doesn’t grant the permit by the current, specified deadline (45 days, with a possible 15 day extension). Since DEP can’t seem to fix its own mess, the Republican Senate is willing to “lend a hand” to help them get it done. Democrats are adamantly opposed to the plan. Enter Yudichak and his plan to “study” the situation. This is nothing more than a typical delay and stall tactic. Appear to be addressing the problem when you really aren’t. To which we say–“too much, too little, too late” Sen. Yudichak. Your guy (Wolf) has had nearly three years to fix it and he hasn’t–it’s time to let the Republican legislature get the job done…
    Read More “PA Dem Senator Calls for “Study” to Address DEP Permit Delays”

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    Atlantic Sunrise Gets Ready to Cross 5 Towns in Lebanon County, PA

    As MDN reported yesterday, construction work on two compressor stations part of the Williams $3 billion Atlantic Sunrise Pipeline project began last Friday, the same day the Federal Energy Regulatory Commission (FERC) gave the project permission to begin construction (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Next up will be digging to lay the pipeline itself. The Lebanon Daily News reports residents in Lebanon County can count on seeing activity there “any day now.” The article names the five townships where the pipeline will cross, and says first up will be staging of equipment, then tree clearing, and finally (perhaps in mid-to-late October) the pipeline itself will get laid in the ground. A few antis in Lebanon have been quite vocal against the project over the past couple of years (see Lebanon County Antis Want Public (Spectacle) Mtg or No Mtg at All). Interestingly, over the past year or so Lebanon antis have been mum. Will we see any nutjobs chain themselves to bulldozers in Lebanon County? We doubt it, but you never know. Depends on whether or not out-of-town Big Green groups send troublemakers into the area. Here’s the list of five towns fortunate enough to see the Atlantic Sunrise, along with the list of four contractors hired to build the pipeline…
    Read More “Atlantic Sunrise Gets Ready to Cross 5 Towns in Lebanon County, PA”

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    Sprague Expands Fueling Footprint in Marc/Utica, Buys Coen Energy

    Here’s a business you might not think about nor associate with Marcellus/Utica drilling–fuel deliveries. If you own a home and live outside of an urban area, you know all about fuel deliveries, because you likely either burn fuel oil or propane to heat your home. What you may not know is that drilling operations need a similar service–diesel fuel deliveries (mostly) at drill pads, to run the engines that generate electricity to run drilling and fracking operations. And fuel deliveries to trucking fleets, to keep the trucks moving. Perhaps an unglamorous part of the business–but vital nonetheless. Fuel deliveries run 24/7 in the oilfield, just like every other activity associated with drilling wells. Sprague Resources, founded in 1870 (not a typo!), is one of the largest independent suppliers of energy and materials handling services in the Northeast with products including home heating oil, diesel fuels, residual fuels, gasoline and natural gas. Sprague has just bought out Coen Energy, headquartered in Washington, PA. Coen pretty much does the same thing, but specializes in servicing the fueling (and storage) needs of Marcellus/Utica drillers. No financial details were included in the announcement, other than Sprague expects the addition of Coen to its company will result in an extra $7-$8 million of revenue per year. Here’s the news about one competitor gobbling up another in order to expand its presence in the Marcellus/Utica…
    Read More “Sprague Expands Fueling Footprint in Marc/Utica, Buys Coen Energy”

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    Rex Energy Update – Brings 10 New Wells Online in Butler Co. PA

    Rex Energy, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), is a plucky company. Although it has faced its share of financial challenges, it continues to drill in the Marcellus/Utica–bringing new wells online. Rex released an announcement yesterday to tout two new wells pads with a cumulative 10 new wells between them that the company has now brought online into production. Rex always refers to their drilling program in three areas: “Bulter Legacy” and “Moraine East” are drilled on Rex’s leases in Butler County, PA; “Warrior North” refers to Rex’s drilling program on land in Carroll County, OH. The latest two pads were both drilled in Rex’s Moraine East area of Butler County. One of the pads, the “Shields” pad with six wells, produced an initial cumulative rate of 9.2 million cubic feet equivalent per day (MMcfe/d), dropping to 7.9 MMcfe/d after 30 days. The “Mackrell” pad with four wells produced an initial cumulative rate of 8.4 MMcfe/d. No 30-day rate (yet) for the Mackrell pad. Here’s the particulars of our “little driller that could”…
    Read More “Rex Energy Update – Brings 10 New Wells Online in Butler Co. PA”

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    Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule

    Earth moving has begun for a compressor station in Columbia County. (Williams Partners)

    Well that didn’t take long! Yesterday MDN brought you the fantastic news that the Federal Energy Regulatory Commission (FERC) had granted Williams a certificate/go-ahead to begin construction on Atlantic Sunrise, 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 (see FERC Greenlights Construction of Atlantic Sunrise Pipeline). FERC issued their permission to begin construction last Friday. Based on a previous Williams statement, we expected construction to begin tomorrow, on Sept. 20th. However, as soon as Williams had the certificate in their hands, they began construction–LAST FRIDAY. Where? Williams fired up bulldozers at two locations–one in Wyoming County, the other in Columbia County (both in northeast PA), to clear land for two new compressor stations they will build as part of the project. Yesterday both Williams AND Cabot Oil & Gas issued the same press release to announce construction has begun. Interesting that Cabot issued the release too, showing just how important this project is to Cabot’s future (and to their stock price)…
    Read More “Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule”

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    PA House Getting Ready to Cave on Severance Tax? Say it Ain’t So!

    It’s funny how mainstream media–and liberal Democrats–can turn on a dime. It was just a few days ago we read an AP story endlessly regurgitated across PA about how the PA budget fight had turned “ugly” and “personal” (see Pennsylvania’s ugly budget fight gets personal and regional). The story began this way: “The feel-good bipartisan spirit that Democratic Gov. Tom Wolf tried to instill last year in Pennsylvania’s Capitol is gone, stomped to bits in an increasingly ugly budget stalemate. Now, the Capitol seems gripped by a feud that is perhaps less partisan than it is regional and personal.” And now, a few days later, everyone is all-of-a-sudden happy and feeling better. It’s all bipartisan butterflies and unicorns popping up in Harrisburg. Why the change? Because now there are whispers that House Republicans may cave on adopting a Marcellus-killing severance tax. That has the antis, and the Dems (often one and the same) all giddy and feelin’ good. Is there any truth to the rumors?…
    Read More “PA House Getting Ready to Cave on Severance Tax? Say it Ain’t So!”

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    FERC Greenlights Construction of Atlantic Sunrise Pipeline

    Bad news for the Sisters of the Corn and the radicals at Lancaster Against Pipelines. On Friday the Federal Energy Regulatory Commission (FERC) granted Williams permission to begin construction on Atlantic Sunrise, 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. Last week the Sierra Club and a mish mash of other nutball groups begged FERC to delay issuing an order that Williams can commence with construction, claiming FERC’s delay in considering a rehearing delayed a lawsuit and the lawsuit hasn’t had enough time to work it’s way through the court system (see Big Green Begs FERC to Delay Construction of Atlantic Sunrise Pipe). As was expected, Big Green’s begging and pleading fell on deaf ears. Williams previously said they plan to begin construction on Sept. 20th–this Wednesday. Ladies and gentleman, start your (backhoe) engines! Sisters of the Corn (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe), you may want to pick up your wooden park benches and the flower trestle–what you call a “chapel”–in the middle of your corn field. Here comes the Atlantic Sunrise!…
    Read More “FERC Greenlights Construction of Atlantic Sunrise Pipeline”

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    Big Green Mouthpiece StateImpact PA Gets $653K Propaganda Grant

    It certainly isn’t journalism. It’s one-sided, anti-fossil fuel advocacy. And it’s profoundly biased. StateImpact Pennsylvania, a Public Broadcasting initiative that’s funded, in part, with taxpayer money, is about to expand by adding another three propagandists to the three it has now. Joy. Four PBS organizations, led by WITF in Harrisburg, PA, is receiving a $652,902 grant from the Corporation for Public Broadcasting (CPB) to expand its propaganda operation and write more anti-drilling, anti-pipeline stories. Stories that are one-sided. Aren’t you glad your taxpayer dollars go to fund this “reporting?” They’ll throw in a little global warming hysteria, just to spice it up…
    Read More “Big Green Mouthpiece StateImpact PA Gets $653K Propaganda Grant”