Pennsylvania

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    PA State Senator Floats Bill to Make Criminal Protesters Pay

    PA residents in Lancaster County have a keeper in freshman Senator Scott Martin. Back in May MDN reported that Martin was cooking up legislation to send the cleanup bill for illegal protests–to the protesters (see PA State Senator Introducing Law to Send Protesters Cleanup Bill). The bill is now here–Senate Bill (SB) 754 (full copy below). Sen. Martin has refined his ideas. Law and order folks (those of us who are sane, rational people) are tired of the lawless actions by a few who oppose pipelines, drilling, Trump…whatever. Sen. Martin and those in the drilling/pipeline industry fully support free speech the right of antis to make fools of themselves. It provides entertainment! What Sen. Martin and those in the industry don’t support, however, is when paid protesting thugs break the law by destroying property and blocking access to legal businesses attempting to do legal work. We saw how so-called environmentalists (who were actually anarchists) “protested” in South Dakota–leaving behind an environmental disaster that cost millions to clean up–far worse than any pipeline spill would have been. Police and first responders were deployed–at a cost of millions of dollars. South Dakota bore most of the cost. That is, taxpayers paid for it. Under Sen. Martin’s bill, if protesters break the law while protesting in PA, incidents that require police and other first responders to handle the situation, those law-breaking protesters will pay the cost of said police and first responders. WE LOVE IT! It’s about time people were actually held accountable for their illegal actions…
    Read More “PA State Senator Floats Bill to Make Criminal Protesters Pay”

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    Faux “Conservative” Group Campaigns Against Fixing PA’s Broken DEP

    A national group of antis calling themselves “conservative” are attempting to meddle in the affairs of Pennsylvania. If you’ve been reading MDN for any time, you know about the current huge, stinking mess of a budget in Pennsylvania. Republicans, which control both the House and Senate, passed an unbalanced budget of $32 billion. Problem is, there’s only $30 billion of projected revenue. So after passing the spending part of the budget, they now have to “come up with” $2 billion to cover the difference. The pressure has been intense to punish the successful Marcellus industry by stealing even more of their money (PA already takes an overly generous portion of their profits). Senate Republicans caved to the pressure and floated a spending plan that includes a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). The House, so far, has resisted the siren song that wants to lure them onto the rocks of killing the Marcellus industry. So far. The Marcellus industry has, for years, complained about the sloooooooow response times in approving drilling permits by the Dept. of Environmental Protection (DEP). As an olive branch to the industry, Senate Republicans also included (in the budget bill) fixes to the slow DEP, to speed things up (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). Now we hear from some national group, calling themselves Conservatives for Responsible Stewardship, that the PA Senate plan to fix the DEP will create an environmental holocaust. Let us assure you, there is nothing “conservative” about Conservatives for Responsible Stewardship. They are Big Green liberals pretending to be conservative. They’re now spending big money (from their Big Green friends) to advertise, in a bid to pressure the legislature to dump the “fix the DEP” plan…
    Read More “Faux “Conservative” Group Campaigns Against Fixing PA’s Broken DEP”

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    PA Gov. Wolf’s Non-Response Response on Atlantic Sunrise Delays

    Over the past year or more MDN editor Jim Willis has signed numerous petitions supporting the Atlantic Sunrise Pipeline project–but it wasn’t until he signed one at a recent Williams event that the got a response from Pennsylvania Gov. Tom Wolf. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project, most of which will get built in northeast Pennsylvania. The project is ready to begin construction, NOW, but still needs a few permits from the state Dept. of Environmental Protection (DEP). In an attempt to get the DEP (and Gov. Wolf) moving, Williams co-hosted an event in July to pressure the DEP and Wolf into granting final permits (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). As guests entered the event, held at the Shadowbrook Golf Course in Wyoming County, PA, they were asked to sign a petition supporting the project. The petitions were delivered to Gov. Wolf and the DEP. Perhaps signing a paper petition, instead of an online/electronic petition, did the trick. MDN received a form letter email response from Gov. Wolf (below). In his response, Gov. Wolf says he supports pipeline development, but that he also supports “strong regulations” to protect people’s health, water, air, blah-biddy blah blah. It is a masterful example of saying nothing at all, while trying to appear you’re saying something. Here’s what we “heard” in Wolf’s response: Screw you–the project will get approved when it gets approved and I don’t care when that is”…
    Read More “PA Gov. Wolf’s Non-Response Response on Atlantic Sunrise Delays”

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    Babst Calland Adds 6 New Lawyers in Pittsburgh O&G Practice

    Babst Calland is one of the biggest and best energy law firms in the northeast, with its headquarters in Pittsburgh. MDN is a long-time fan and reader of the company’s Shale Energy Law Blog. One of the ways you know whether the shale industry is getting busier, or less busy, is to watch the law firms that practice in the shale space. Here’s a bit of good news to share. Babst Calland has, in one fell swoop, added six new members to its energy practice–all of them with experience and expertise in oil and gas. Yes, the firm already has some 130 attorneys on staff. Adding another 6 energy lawyers boosts the size of the firm’s headcount another 5%. That’s pretty significant–and evidence that the Marcellus/Utica shale space is heating up. Here’s BC’s announcement of who just joined up…
    Read More “Babst Calland Adds 6 New Lawyers in Pittsburgh O&G Practice”

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    Findlay Twp Signs Deal w/Range to Drill Under Town Park, $3K/Acre

    Findlay Township (Allegheny County, PA, west of Pittsburgh) has just signed a deal with Range Resources to allow drilling under (not on) the towns 61-acre Clinton Park. Terms of the deal: Findlay gets a $3,000 per acre signing bonus and when the gas begins to flow, an 18% royalty. That means Findlay will get a nice, fat check for $183,000 in the next 90 days. The lease has been a long time in coming. Town supervisors worked on a deal five years ago, but then drilling slowed down and the deal was “put on the shelf.” Range will actually drill under the property from the Seibel Farm, which sits just over the border in Beaver County. The board of supervisors voted unanimously to approve the deal…
    Read More “Findlay Twp Signs Deal w/Range to Drill Under Town Park, $3K/Acre”

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    Shell Cracker Plans to Build Truck Facility in Washington County

    Click for larger version

    Please note: Thanks to MDN reader Todd S. from Washington County, PA for correcting our map/distance from the Starpointe Business Park to the cracker plant location in Monaca, PA. Our previous Google map showed an incorrect distance (46 miles). It is actually ~28 miles. The story below has been corrected to reflect it.

    It looks like Shell is going to build a trucking dispatch operation for its ethane cracker–but it won’t be located anywhere near the cracker site. The new trucking facility will be located in Washington County, PA–a half hour away. MDN was one of the first to announce Shell’s final investment decision to build an ethane cracker plant (that we now know will cost $6 billion) in Beaver County, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). A lot has happened at the site, situated on a former zinc smelting plant site in Monaca, PA. Shell built a new access road for trucks accessing the site–a concrete bridge overtop an adjacent highway–even before the final investment decision (see Shell Begins Building Bridge to PA Cracker Plant Site). Shell leased a huge office building and parking lot near the site (see Shell Leases 76,000 Sq Ft Office Space Near Cracker Plant Site). Shell even leased part of a nearby mall parking lot, for workers to park there (see More Evidence that the Shell Ethane Cracker Plant in PA is a Go). Everything we’ve seen thus far seems to be activity in and around Monaca–in Beaver County. That is, until now. A meeting yesterday of the Washington County (PA) Board of Commissioners hinted that Shell is about to build a facility there. Yesterday the commissioners voted to approve a new 31-acre development with a “90-bay distribution center and trucking dispatch operation” at Starpointe Business Park, in Hanover Township. The resolution contained this language in describing the project: “…to construct a two-unit building for Shell.” County officials and Shell officials won’t confirm a thing, but it seems pretty likely Shell is planning to build a big trucking facility in the business park, which is (by our calculations) about 28 miles and a half hour from the cracker site…
    Read More “Shell Cracker Plans to Build Truck Facility in Washington County”

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    Lawrence County, PA O&G Production “Inching Upward Again”

    Lawrence County, located along Pennsylvania’s border with Ohio, is not the first county you think of when discussing Marcellus/Utica drilling in western PA. There have been no permits to drill new shale wells in Lawrence so far this year. However, the county does have 58 operating shale wells–and the amount of gas those wells produce is gradually rising. All but 10 of the wells are owned and operated by Hilcorp. Most of the wells are located in just two townships: Pulaski and Mahoning. Linda Nitch, executive director of economic business development for the Lawrence County Regional Chamber of Commerce, believes Hilcorp is pumping more gas from the wells it owns in Lawrence. She’s hearing from some landowners that their royalty checks are “getting a little bigger”…
    Read More “Lawrence County, PA O&G Production “Inching Upward Again””

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    Philly Refinery “Mired in Debt” – Fights for Survival

    In 2012, Sunoco inked a deal with The Carlyle Group to form a joint venture to keep Philadelphia’s historic refinery operating (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). The jv was called Philadelphia Energy Solutions (PES), and its CEO was the charismatic Philip L. Rinaldi, who was called “fossil Phil.” The refinery flourished–and saved 850 jobs. But PES hasn’t been without its challenges. They tried to expand their operation at the Southport Marine site in Philadelphia by leasing an additional 200 acres to build a terminal for shale oil imports and exports. But in the end, Gov. Wolf (a dunce) decided the land next to the refinery would be better used as a parking lot for imported cars coming from Japan (see PA Gov Wolf Kills Plan for PES Refinery Expansion in Philadelphia). Late last year fossil Phil decided to hang it up and retire (see PES’ Phil Rinaldi Stepping Down; Will Philly Energy Hub Die?). Can’t blame him. PES is now, according to Bloomberg, in a fight for its survival. The culprit is the exorbitant (we’d call it extortionist) fees PES must pay the federal government for something called Renewable Identification Numbers, or RINs. What are they? And will they spell the end of PES?…
    Read More “Philly Refinery “Mired in Debt” – Fights for Survival”

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    Frivolous Lawsuit Delays H&H Drilling in Westmoreland County, PA

    Huntley & Huntley has plans to drill 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 Westmoreland Zoning Challenge Heads to Court, Delays H&H Drilling). H&H plans to drill a well near where the woman lives, and she’s arguing such drilling will violate the state’s environmental rights clause and “devalue her property.” The case was supposed to go to township’s Zoning Hearing Board, but all of the (many) lawyers involved agreed to instead move it to county court, making the process faster and less expensive. Last month the judge said he would make a decision in the case “next month” (meaning in August) about whether or not the town can issue conditional use in agricultural-residential zoning district (see Westmoreland Zoning Challenge re H&H Wells Closer to Resolution). But on Monday, the judge put the case on pause again because the landowner has sued the town claiming the town’s very right to issue conditional use permits in agricultural-residential districts is unconstitutional. A hearing on that charge will happen in October. H&H is in a holding pattern, thanks to a frivolous lawsuit…
    Read More “Frivolous Lawsuit Delays H&H Drilling in Westmoreland County, PA”

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    Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?

    It was only two days ago MDN told you that a Marcellus gas-fired electric plant planned for Lawrence County, PA 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. The news we brought you earlier this week is that South Korea’s KB Asset Management just 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. Another report in the Korean Investors publication reports 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. Not only that, the article also reports, “Ground has been broken for the plant.” We don’t know for sure whether or not that is true, but if ground has not yet been broken, we expect it will happen soon…
    Read More “Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?”

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    Fed Court Exonerates Anadarko in PA Wrongful Death Lawsuit

    In May 2012 a water truck driver delivering water to an Anadarko Marcellus Shale well pad in Clinton County, PA missed a turnoff for the road he was supposed to take, at 2:30 am in the morning. A couple of miles later he crashed and tragically died because the road he was on was not marked well and not conducive to the truck he was driving. There was a sign warning the driver not to go beyond a certain point. The driver had previously–that night–already delivered to the well pad and successfully turned onto the road he was supposed to take. Why did he miss it the second time? His widow maintains that even though he worked for a subcontractor, Anadarko was the company in charge and should have had a light illuminating the “No Anadarko Traffic Beyond This Point” sign. So she sued Anadarko, and the subcontractor, for wrongful death. Lower courts threw out the lawsuit but a federal appeals court reinstated a civil suit against Anadarko (see Fed Court Rules PA Wrongful Death Lawsuit Against Anadarko Proceeds). The federal court has just ruled. The judge found that Anadarko is not at fault in this tragic accident…
    Read More “Fed Court Exonerates Anadarko in PA Wrongful Death Lawsuit”

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    Cabot O&G Wants Consolidation, Won’t Rule Out PA Marcellus Sale

    We have to confess, we are not only shocked, but somewhat distressed at news we are reading that Cabot Oil & Gas is considering all options, including a sale of its Marcellus acreage in Susquehanna County, PA. To be fair, and to keep it in balance, it seems that the company would prefer to add to its Marcellus acreage, rather than sell it. However, chief financial officer Scott Schroeder said at a conference in Denver yesterday that all options are on the table, including a Marcellus acreage sale “if the terms are right.” MDN editor Jim Willis lives next door to Susquehanna County (and regularly visits Montrose, PA), and knows landowners in the county signed with Cabot. You have to understand how fundamentally Cabot has changed the county, by investing $1.5 billion into the pockets of landowners over the past 10 years, along with spending another $3.1 billion to do the drilling (see Amazing: Cabot O&G Invests $4.6 BILLION in One PA County in 10 Yrs). Cabot produces nearly 2 billion cubic feet of natural per day from Susquehanna County–around 3% of total U.S. production. One county! One driller! Every landowner we know who is signed with Cabot LOVES the company. Even idle talk that the muckety mucks at the top would consider a sale of their Marcellus acreage will come as shock, we have no doubt. We have repeatedly heard Cabot officials state they are in Susquehanna County “for the next 40 years or more.” Unless, apparently, they decide to sell…
    Read More “Cabot O&G Wants Consolidation, Won’t Rule Out PA Marcellus Sale”

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    PA Rep. Ortitay Intros Watered-Down Minimum Royalty Bill

    Pennsylvania Rep. Jason Ortitay, Republican from South Fayette (Washington & Allegheny Counties), PA who replaced Jesse White in January 2015 (see Pro-Driller Ortitay Replaces Anti-Driller White in PA House) has introduced a new bill in the PA House to bridge the gap between landowners who want a guaranteed minimum royalty of 12.5% regardless of post-production costs, and drillers who adamantly oppose a guaranteed minimum royalty. Rep. Garth Everett, Republican from Lycoming County, has been the champion of landowners and their quest to stop what they see as an abuse of the contracts they signed by implementing a state-mandated 12.5% minimum royalty–even if post-production costs eat into it (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Landowners and groups representing them, like the National Association of Royalty Owners (NARO), point to abuses by companies like Chesapeake Energy and claim some drillers cook up deals with pipeline/processing companies to overcharge, deducting it from royalty checks, and then getting the money back from those pipeline companies via investments. Kind of a kick-back scheme. Drillers maintain you can’t upend legal contracts in response to one or two rotten apples in the barrel. Ortitay believes he can navigate the middle ground, proposing a bill that will require drillers to itemize the deductions made from royalty checks, and prevent drillers from sending landowners a bill, which is beyond-words offensive. Can you imagine any landowner signing a lease that requires the landowner to pay the driller when prices go low? It’s ludicrous, and Ortitay’s bill, House Bill (HB) 1708 aims to fix it…
    Read More “PA Rep. Ortitay Intros Watered-Down Minimum Royalty Bill”

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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…
    Read More “More Evidence PA House Repubs Beginning to Cave on Severance Tax”

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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”