Pennsylvania

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    Penn Hills, PA Grudgingly Votes 5-0 to Allow H&H Seismic Testing

    What a difference two months–and the very real threat of a lawsuit–can make. At the end of July Penn Hills (in Allegheny County, near Pittsburgh) voted to ban seismic testing in their community as a symbolic action “meant to send a message to companies that the municipality is against oil and gas activities on Penn Hills property.” Driller Huntley & Huntley has hired Texas-based Geokinetics to conduct seismic testing in the region and had wanted to conduct testing on 37 municipal-owned properties in Penn Hills, about 390 acres total. But Penn Hills resisted. So H&H’s attorneys at Steptoe & Johnson sent a “we’ll sue your rear-ends” letter and that got the attention of the symbolizers. Last night another vote was taken. This time it was 5 to 0 in favor of allowing seismic testing after all. The mayor (grumbling) said the municipality did it’s best to resist…
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    PA House Ctte Votes to Rename “Impact Fee” to “Severance Tax”

    The Pennsylvania House Environmental Resources and Energy Committee amended a bill yesterday that will rename PA’s impact fee to a “severance tax,” a move which really ticked off the high taxers in the legislature, and anti-drillers (most of them one and the same). The PA House came back into session yesterday and 25 House members (most of them Democrats) made a move to get a vote on a bill with a 3.5% severance tax. The Republican majority on the committee flipped things around and replaced that measure with a vote to rename the impact fee–as a way of illustrating that the industry IS ALREADY TAXED, JUST LIKE A SEVERANCE TAX, even if you don’t call it one. So, let’s just call it one! Brilliant! Of course there are differences between a severance tax and an impact fee–actually the fee is a better revenue generator than a severance tax. However, the point remains: the industry is already paying a high tax, and to slap another on top of it is suicide. Republicans on the committee got their point across…
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    Ridgetop Capital Raises $200M to Invest in Marcellus/Utica Leases

    Ridgetop Capital Partners, founded in 2007 and headquartered in the Pittsburgh area, is a private institutional investment firm focused mainly on the oil and gas space. That is, they raise money from rich people (and businesses) and invest that money in projects which they closely watch and influence, hoping to make their money back with a generous interest rate. A LOT of private money funds oil and gas development–there is nothing new or novel about Ridgetop. However, what is new and novel is that the company has just closed on another round of fundraising–chasing $200 million through the door–which they will now use to buy natural gas mineral rights (i.e. leases) in the Marcellus/Utica. The company previously invested ~$130 million in our region’s shale, snapping up ownership in over 30,000 acres (most, perhaps all of it, in joint ventures with major M-U drillers). Where will Ridgetop likely invest to buy new acreage? They’ve given us a big clue…
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    No DRBC Frack Ban…Yet; A Look at DRBC Corruption & Incompetence

    Last week the rumor mill was hot with speculation that on Friday the Delaware River Basin Commission would release a draft document outlining their proposal to ban hydraulic fracturing in the Delaware River Basin permanently (see DRBC Secretly Working on Permanent Delaware Basin Frack Ban). Fortunately, that didn’t happen. But don’t start celebrating just yet. The rumors are still swirling. Apart from a single Associated Press article (run in dozens of newspapers), there has been no other coverage of this big news. Why is that? Why is mainstream media so uncurious about a potential DRBC frack ban? The person doing the real work on this story is MDN friend Tom Shepstone. Writing on his blog site Natural Gas Now on Saturday, Tom did a masterful job of chronicling the foibles of the DRBC–and he laid out how we got to where we are now, with a potential permanent ban. In a nutshell, landowners in Wayne County, PA sued to reverse a grievous error, challenging the DRBC’s authority to regulate fracking in the basin. That lawsuit, and the very real possibility that a decision will go against the DRBC, prompted radical environmental groups like THE Delaware Riverkeeper to push for a DRBC permanent ban. The effort for a permanent ban, which (for now) would only affect Wayne and Pike counties in PA, went into overdrive a few months ago. Here’s Tom’s excellent article, which will bring you up to speed and prepare you for when the news of a permanent ban eventually does break–possibly this week at the DRBC regularly scheduled meeting…
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    DRBC Secretly Working on Permanent Delaware Basin Frack Ban

    It was just yesterday that MDN highlighted a story written by friend Tom Shepstone on his Natural Gas Now website theorizing that the Delaware River Basin Commission, long influenced by big money coming from the Haas family via the William Penn Foundation and their surrogates, is planning to implement a full ban on fracking in the Delaware River Basin (see Tom’s story: Is the William Penn Foundation Planning a DRBC Ban?). Looks like Tom is a soothsayer. Elements of the William Penn cabal are leaking, like a sieve, news that the DRBC is about to introduce a permanent frack ban, which includes a ban in Wayne and Pike counties in Pennsylvania. The proposed ban may be introduced as early as today. We suppose the news shouldn’t surprise us, given that in July anti groups, including the William Penn lobbying arm Delaware Riverkeeper, hit the panic button (because of a lawsuit) and ramped up an effort to push a permanent ban (see Anti Groups Panic, Demand Govs Ban Fracking in Dela. River Basin). The big question is what will the prevaricating PA Gov. Tom Wolf do? He has mouthed support for a moratorium, but so far has not signed on for a permanent ban. Will he sell out all the way and now support a ban–screwing thousands of his own constituents? Who knows. Here’s the breaking news…
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    Philly RINO Proposes High-Tax PA Budget, Incl. a 3% Severance Tax

    We’ve written plenty about Philadelphia-area RINO (Republican In Name Only) State Rep. Gene DiGirolamo. In May DiGirolamo introduced yet another severance tax bill (see Tiresome: Philly RINO Rep Gene DiGirolamo Intros Severance Tax Again). Like a bad penny, Gene keeps turning up. Yesterday, without consulting Republican leadership (because, he said, they would have tried to talk him out of it), DiGirolamo introduced his own version of a plan to supply the missing funds to balance the state budget. Like all good Democrats, DiGirolamo’s plan is packed with tax increases, including (yes) a severance tax. Oh wait! He’s a Republican, not a Democrat. Or is he? In addition to slapping a 3% severance tax ON TOP OF the impact fee, DiGirolamo wants to raise the state income tax from 3.07% to 3.32%–a hefty 8.1% increase. Pennsylvanian’s won’t miss it, right? And besides, the teachers unions in Philly really want that money, bad…
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    PA State Sen. Intros Meaningless Resolution Urging Natgas Exports

    In our daily trawl of the news, we came across the text of a resolution by Pennsylvania State Senator Stewart J. Greenleaf. Sen. Greenleaf is looking for co-sponsors of the resolution, which urges PA natural gas producers to export natural gas to European countries in order to curtail a Russian natgas monopoly. Greenleaf said, “Copies of this resolution will be transmitted to the Marcellus Shale Coalition, the Secretary of the Pennsylvania Department of Community and Economic Development, the President of the United States, the presiding officers of each house of Congress and to each member of Congress from Pennsylvania.” We thought: Nice sentiment…raise the natgas flag…rah rah and all that jazz. But at the end of the day, a resolution is meaningless. It has no force of law. It does nothing. It’s purely public relations bupkis. We wondered, why would Sen. Greenleaf, from Montgomery County (near Philadelphia) introduce this now? We revisited the list of traitorous Republican Senators who voted for the state budget that includes a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). And yes, we discovered Sen. Greenleaf is one of the traitorous Republicans who voted for the horrible severance tax (and horrible gross receipts tax on natural gas, phones and electricity). The light went on. Greenleaf is using this resolution as a sleazy political ploy to try and curry favor with the natural gas industry–after he stabbed it in the back…
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    PA DEP Says 3 ME2 Spills Violate Agreement with Big Green

    It looks like Big Green has succeeded in conflating a mole hill into a mountain in Pennsylvania. In early August, Sunoco Logistics struck a deal with with several Big Green groups to provide stricter regulation for Mariner East 2 Pipeline’s underground drilling (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Part of the deal says if Sunoco experiences two leaks of drilling mud at the same location, they must shut down drilling in that location and wait for the state Dept. of Environmental Protection to further review drilling plans before they can restart. On August 24th there was a 50-gallon drilling mud spill into the Susquehanna River in Dauphin County related to ME2. A quick reminder: drilling mud, or “bentonite,” is non-toxic–the same stuff found in toothpaste and kitty litter. The 50-gallon spill would be like spilling 50 one-gallon jugs (maybe 10 bags) of kitty litter into the enormous Susquehanna River–a non-event. However, the Philadelphia-based Clean Air Council cried foul over the spill (see Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill). And now the state Dept. of Environmental Protection (DEP) has agreed, saying that spill plus spills in two other locations violate Sunoco’s agreement with Big Green…
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    Philly Antis Step Over the Line (Literally) at ME2 Pipeline Site

    Acting like 5-year olds who have been told not to do something, but defiantly do it anyway, several homeowners in a housing development in Delaware County who were specifically instructed not to interfere with clearing work for the Mariner East 2 Pipeline in a Philadelphia suburb. The homeowners intentionally crossed a clearly-marked line into the construction zone, putting themselves at risk. The homeowners, who object to the pipeline, wanted to “push the buttons” of the workers at the construction site. The workers promptly called the cops and of course, work could not commence while the police interviewed everyone to see what’s what. In the end, no arrests were made. The homeowners were on jointly-owned housing development property. Their lawyer told them they could enter the work area as long as they didn’t stop the work being done. One of the babies homeowners admitted she wanted to chain herself to a tree, but she restrained herself. So big of her…
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    FirstEnergy Knocks $100M Off Sale Price of 4 PA Gas Power Plants

    FirstEnergy, based in Akron, OH, is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. FirstEnergy owns a variety of regulated and non-regulated power generation plants. Last November the company announced it wants to sell five power generating plants, four of them natural gas-fired plants in Pennsylvania, plus a hydroelectric plant in Virginia (see FirstEnergy Selling 4 NatGas-Fired Electric Plants in PA). The plants being sold are non-regulated–part of FirstEnergy’s strategy to become a 100% “regulated” utility in the next 12 months. Last December FirstEnergy announced they had found a buyer, LS Power Equity Partners, willing to pay $885 million (later revised to $925 million) for the whole package (see FirstEnergy Finds Buyer for 4 PA NatGas-Fired Power Plants). However, negotiating the finer points of the deal has been “a challenge” and now FirstEnergy says in order to complete the deal, they’re willing to lower the price to $825 million…
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    PA House Introduces Balanced Budget with NO Severance Tax

    The Republicans in the Pennsylvania House of Representatives have done the hard work that PA Senate Republicans failed (or refused) to do: they have just introduced a budget bill that doesn’t raise a single tax, including no horrible severance tax–and yet they will balance a wildly overspent budget. How will they accomplish this feat of Houdini magic? By tapping into the bloated extra money budgeted but not spent by numerous state agencies. For example: mass transit, ports, rails and infrastructure accounts have a cumulative extra $507 million sitting in bank, unused. Why not reallocate it? Hazardous waste and industrial cleanups, agriculture, environmental, conservation and recycling programs have an extra $440.5 million laying around. Why not reallocate it? Etc. House Republicans, unlike their traitorous Senate counterparts, have “found” $2.4 billion in money laying around, unused in other accounts, that they plan to reallocate to the state budget. Genius! This is why House Speaker Mike Turzai should be PA’s next governor, not the inept Tom Wolf…
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    PA DEP Report on Emissions Exposes Wolf’s Methane Plan as a Dud

    In January 2016 Pennsylvania Gov. Tom Wolf and his now-fired Secretary of the Dept. of Environmental Protection (DEP), John Quigley, introduced an awful four-point plan to supposedly reduce methane emissions by 40% over the next five years (see PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs). Even though the plan has not (so far) been implemented, due to the negative effects it would have on the drilling industry, the happy news is that air emissions have improved, dramatically, as a recent PA DEP annual report chronicled (see PA DEP Reports: Air Emissions from Shale Industry Improved in 2015). Although methane emissions went up a tiny bit because there’s more drilling and more pipelines than ever, the big news is that methane emissions per unit of production actually went DOWN. But you won’t read that in mainstream news where they trumpet a so-called increase in methane as an excuse to implement Wolf’s dud plan…
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    PA-Based Talen Energy (Elec Generator) Sells NatGas Trading Biz

    Talen Energy was birthed in June 2015–a combination of PPL Energy Supply and certain assets of Riverstone Holdings. The company, headquartered in Allentown, PA, is one of the largest competitive energy and power generation companies in North America. Talen owns or controls 16,000 megawatts of generating capacity in wholesale power markets, primarily in the Northeast, Mid-Atlantic and Southwest regions of the U.S. Talen has gotten into converting and building natural gas-fired electric plants, stories we’ve covered over the past few years (see our Talen Energy stories here). At one time Talen employed around 500 people in Allentown at its HQ. In summer 2016 the company announced layoffs for 131 people. In May of this year, the trend continued (see Allentown-Based Talen Energy (Elec Generator) Laying Off Workers). Now comes word that the company is selling off its natural gas trading business for $54 million, transferring another 11 Talen employees from its Allentown HQ to the company buying the business. Talen considers buying and selling natgas on the commodities markets as “noncore” to its power generation business…
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    TGP’s Susquehanna West Project Gets Green Light to Begin Service

    In April 2015 Kinder Morgan’s Tennessee Gas Pipeline (TGP) subsidiary filed an application with the Federal Energy Regulatory Commission (FERC) to build 8.2 miles of new looping pipeline in Tioga County, PA and beef up two compressor stations in Bradford County, PA. The $142 million project is called the Susquehanna West Project. It will increase capacity along the 300 Line section of TGP, bumping it up by 145 million cubic feet per day (Mmcf/d). All of the extra capacity is spoken for by Statoil and the wells they’ve drilled in NEPA. Last September, FERC approved the project (see FERC Approves Another KM Pipeline Project in the PA Marcellus). The project was forecast to be done and dusted, going online, by Nov. 1. Usually we bring you news about such projects being delayed. In a happy reversal of that trend, last week FERC granted Kinder Morgan permission to bring the project online, NOW, a full two months ahead of schedule. Christmas came early this year…
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    Atlantic Sunrise Pipe Gets Water Permits from Army Corps, PA DEP

    The red lines show the Atlantic Sunrise Pipeline expansion. The light blue lines are the existing Transco system.

    Great news to report! Both the U.S. Army Corps of Engineers (ACE) and the Pennsylvania Dept. of Environmental Protection (DEP) have now issued federal Clean Water Act stream crossing permits for the Atlantic Sunrise Pipeline–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. In addition, portions of the project that don’t include laying new pipeline (the “brownfield” part of the project) running from Lancaster County, PA all the way to Choctaw County, Alabama go online today–reversing the mighty Transco and increasing its flow rate by 400 million cubic feet per day (MMcf/d). One permit remains to be issued–an air permit–by the PA DEP. Williams expects to begin construction on the new pipeline (“greenfield” part) later this month…
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    PA DEP Reports: Air Emissions from Shale Industry Improved in 2015

    The Pennsylvania State Dept. of Environmental Protection (DEP) keeps track of emissions from various sources–including the shale industry. When drillers drill and pipeline companies pipe, the equipment used leaks some nasty stuff into the air. Frankly it’s no different for any industrial activity or business. Even homes. We all emit stuff into the air. The question is, how much do we emit and does it rise to the level of being harmful? Yesterday the DEP released air emissions numbers for the shale industry for 2015–the most recent year in which they have completed data. What does it show? According to DEP Secretary Pat McDonnell, it presents a “mixed picture.” Some of the nastiest pollutants, like nitrogen oxides (NOx), sulfur dioxide (SOx) and particulate matter (PM2.5), decreased from 2014 levels. Some things like methane (natural gas, considered a “pollutant” if it escapes into the atmosphere where it’s said to contribute to mythical global warming) are increasing. Because methane is increasing, McDonnell says more needs to be done to stem the leaking. On balance, this report looks pretty good to us–pollution from the gas industry (the things that really matter like NOx, SOx and PM2.5, are decreasing. A reason to celebrate the good work being done by the industry…
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