Pennsylvania

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    Radicals Protest Outside PA Senate Hearing on NatGas Benefits

    On Wednesday, the Pennsylvania Senate Majority Policy Committee and Environmental Resources and Energy Committee held a joint hearing to examine the economic benefits natural gas production has brought the Keystone State. MDN friend David Spigelmyer, president of the Marcellus Shale Coalition, was present and let legislators know that PA has become the #2 natural gas producer in the country, and that remarkable feat has brought PA billions of dollars in investment. The investment in new or converted natural gas electric plants alone has reached $10 billion! Thad Hill of Calpine Corporation (nation’s largest generator of electricity from natural gas) also spoke. While the adults were inside talking about serious issues, children in adult bodies were outside misbehaving, as they typically do. Radicals (paid protesters) from Earthworks held a protest rally on the steps of the Capitol where they held up big, black balloons. Yeah, we have no idea what makes them tick either… Read More “Radicals Protest Outside PA Senate Hearing on NatGas Benefits”

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    MarkWest’s Washington, PA Processing Plant Plans Reactivated

    In October 2016, MDN reported that electric company FirstEnergy had begun construction of a new electric substation in Washington County, PA to provide electricity to “support two natural gas processing facilities being developed in the area” (see Work Begins on $40M Electric Substation in W PA to Help Marcellus). At the time we speculated that at least one of the beneficiaries would be MPLX’s MarkWest Energy subsidiary. We were right. Not long after, NGI’s Shale Daily reported that one of the projects to be served by FirstEnergy’s new substation will be the MarkWest Harmon Creek Complex, a new processing plant that would be built to process natgas for Range Resources (see MarkWest Building New Processing Plant in Washington County, PA). But then all went quiet, when the project went on “indefinite hold.” The hold is now over. MarkWest officials recently attended a Smith Township planning commission meeting (where it will get built) to discuss the project which is now front and center once again. 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… Read More “MarkWest’s Washington, PA Processing Plant Plans Reactivated”

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    Local Lancaster Businesses Ready to Profit from Atlantic Sunrise Pipeline

    When (not if) the Atlantic Sunrise Pipeline begins construction this summer in Lancaster County, PA, area businesses plan to take advantage of the economic boon that will arrive along with some 250 workers who will build it. Atlantic Sunrise is 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. Construction in Lancaster County will last approximately nine months and is projected to inject $75 million in the local economy. What kinds of businesses will benefit? Some include “housing, rental equipment, food sources, welding supplies, waste disposal, construction material, security, fuel, water trucks, concrete services, buses and transportation, auto repair, laundry services, drain tile work and hauling services.” And that’s only some of the services needed. Campgrounds are another business expected to experience a big uptick in demand. According to Williams spokesman Christopher Stockton, “We are encouraging all our construction contractors to utilize local service providers as much as possible.” That’s good news for local businesses. Here’s how local businesses in Lancaster County (and elsewhere) can sign up to get their piece of the Atlantic Sunrise action… Read More “Local Lancaster Businesses Ready to Profit from Atlantic Sunrise Pipeline”

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    Fake Harvard Study Generates Fake News re NatGas Storage in M-U

    Here we go again. A new “study” published today by Harvard University researchers supposedly indicates that Pennsylvania, Ohio, and West Virginia are loaded with underground natural gas storage sites that may leak like the Aliso Canyon debacle in California. The new study published in the journal Environmental Research Letters, titled “A national assessment of underground natural gas storage: identifying wells with designs likely vulnerable to a single-point-of-failure” (full copy below), says there are 14,138 active underground storage (UGS) wells in 317 locations/facilities in the U.S. The study identifies 2,715 active UGS wells across 160 facilities that, like the failed well at Aliso Canyon, were not originally designed for gas storage. (Gasp) Even worse: The majority (88%) of these repurposed wells are located in OH, MI, PA, NY, and WV. (Double gasp) Here’s the thing: Aliso Canyon was one facility that had a catastrophic failure (a failure which, by the way, hurt no one–it just released some extra methane into the air). While it may be interesting and useful to know (for accident prevention) that there are other facilities constructed years ago, like Aliso Canyon, that were later repurposed to be used for underground storage–each and every location is different, with unique characteristics. No two storage sites are the same geologically. It does not follow, as implied in the report, that because Aliso Canyon leaked, that these other “similar” facilities will eventually fail and leak. However, our main objection to this research–and why we call it fake research–is that the researchers never bothered to go into the field and take air samples to see if there is any ACTUAL leaking going on at any of these thousands of other sites! Fake mainstream news sources are just now picking up on the story and running it. Nothing sells newspapers (or grabs online eyeballs) like fear. And hey, it serves the mainstream narrative that fossil fuels are the ultimate evil. Here’s the kicker: This latest “research” was funded, in large part, by the virulent anti-fossil fuel Heinz Foundation and The Nature Conservancy. That tells you all you need to know about this latest bought-and-paid-for “research” study with a Harvard label slapped on it…
    Read More “Fake Harvard Study Generates Fake News re NatGas Storage in M-U”

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    Marcellus DUCs Lay Golden Eggs for Northeast Drillers

    We’ve written a number of times about DUCs–otherwise known as drilled-but-uncompleted wells. When a shale driller drills a new well, it doesn’t always happen all in one go. You first drill the hole down, and then curve the drillbit and drill the horizontal portion–called the lateral. Then you pull the drill bit out of the ground and (at some point) the fracking process begins. Fracking doesn’t always happen right away. Sometimes wells are initially drilled but not fracked–essentially putting them in inventory to be fracked later. Those wells are DUCs. Since a lot of the cost to develop the well has already been spent in preparing the site and drilling the hole, to come along at a later time and frack is much “cheaper” if you (as a driller) want to bump up your production. Price of gas low right now? Drill the initial hole, mothball the project, and come back later when the price of gas goes up and finish it off and hook it up to production. The DUC inventory is a closely watched number. Analysts at Platts have been watching and have noticed something interesting. In most shale plays–particularly oil plays like the Permian in Texas–drillers are sinking initial holes as fast as they can and the DUC inventory numbers are going up up up. The Permian has seen 476 new DUCs added since January! But in the Marcellus, only 3 new DUCs have been added since last December. Which is “puzzling.” What does it mean?…
    Read More “Marcellus DUCs Lay Golden Eggs for Northeast Drillers”

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    No More “Acting” for Pat McDonnell – Confirmed PA DEP Secretary

    No more “acting” for Pennsylvania’s Secretary of the Dept. of Environmental Protection (DEP). In May 2016, DEP Secretary John Quigley was fired for using a PRIVATE email account to collude with his Big Green friends to try and bully PA’s legislators into supporting his onerous proposed regulations (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Richly deserved. The man who took his place as Acting Secretary is Patrick McDonnell, a 19-year veteran of the DEP. Pat made it clear from the beginning he’d like to move from “acting” to full Secretary. It took Wolf long enough, but finally last September he put Pat’s name forward as permanent DEP Secretary (see Gov. Wolf Nominates Pat McDonnell to Head PA DEP, Finally). We’re not sure what the holdup was, but the PA Senate Environmental Resources and Energy Committee finally held a hearing and grilled McDonnell a few weeks ago, after which the panel voted to recommend he be confirmed (see PA DEP Acting Secretary McDonnell Will Soon Drop “Acting” from Title). We’re happy (we think) to announce that Pat McDonnell was confirmed by a full vote by the PA Senate. The vote was unanimous…
    Read More “No More “Acting” for Pat McDonnell – Confirmed PA DEP Secretary”

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    DEP GP-5 & 5A Regs – Imminent Threat to PA Marcellus Drilling

    In December 2016, the Pennsylvania Dept. of Environmental Protection (DEP) unveiled new regulations to clamp down on methane emissions and other other air pollution that allegedly comes from shale drilling sites (see PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites). The onerous new regulations, not in effect yet, were originally prompted by bullying from the federal Environmental Protection Agency. Even though EPA pressure has disappeared under President Trump, PA Gov. Wolf still intends to push forward with these onerous (frankly, disastrous) regulations. According to the DEP, the proposed General Permit 5A (GP-5A) and the revised General Permit 5 (GP-5), “establish updated Best Available Technology (BAT) requirements for the industry regarding air emission limits, source testing, leak detection and repair, recordkeeping, and reporting requirements for the applicable air pollution sources.” After some final tweaks, the DEP released draft versions of the new permits (i.e. regulations) in February (see PA DEP Seeks Public Comment on Regs for Methane, Compressor Stns). The original public comment period was slated to last 45 days, ending in March. For no stated reason, the DEP extended the comment period until June 5th (see PA DEP Extends Public Comment Period for Methane Regs). In March, MDN editor Jim Willis heard former DEP Secretary Mike Krancer say if GP-5A is enacted as written, it will result in a 12-18 month moratorium on new production in Pennsylvania (see Big News from the O&G Awards Northeast Industry Summit). The shale industry is taking the changes very seriously and has initiated a full court press to oppose the new regulations as written…
    Read More “DEP GP-5 & 5A Regs – Imminent Threat to PA Marcellus Drilling”

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    PA NatGas Production for Jan-Mar 2017 Hits New High

    It’s shaping up to be another banner year for natural gas production in Pennsylvania, going by the latest quarterly production report. The PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Jan-Mar 2017 (full copy below). It shows natgas production rose 1.7% compared to the same period last year. It also shows the number of producing wells is up 8% from last year. Total natural gas production volume was 1,305.7 billion cubic feet (bcf) and the number of producing wells in 1Q17 was 7,678. Perhaps the biggest news is that 1Q17 saw the highest quarterly production–ever. Another interesting fact from the latest report: Four counties (Susquehanna, Washington, Bradford and Greene) comprised two thirds of statewide production. The #1 county for natgas production in 1Q17? Susquehanna County. The #1 driller in that county? Cabot. You might say, with some justification, that the success of Cabot’s drilling program in Susquehanna County has translated into success for all of Pennsylvania…
    Read More “PA NatGas Production for Jan-Mar 2017 Hits New High”

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    Shell Lines Up 3K+ Parking Spaces for Cracker Construction Workers

    Believe it or not, Shell previously hired a third-party consultant to perform a traffic study in the area where Shell plans to build a $6 billion ethane cracker in Beaver County, PA. Based on the findings and recommendations of that study, Shell has begun to secure parking spots for construction workers that will descend on that location to build the plant–beginning later this year. One of the recommendations is to limit the number of parking spots to no more than 1,500 at any one location. Shell currently has three locations lined up and (mostly) ready to go, enough for 3,100 parking spots. At its peak, the project will employ something like 6,000 workers. So either Shell will line up more spots, or maybe workers will carpool…
    Read More “Shell Lines Up 3K+ Parking Spaces for Cracker Construction Workers”

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    ExxonMobil & Employees Contribute More than $50M to Higher Ed

    You know how money-grubbing, cheap, careless and in general no-good those Big Oil companies are, right? They only care about themselves. They seek to rape and pillage Mom Earth, keeping piles of gold in their coffers, killing humankind in the process. That’s the picture painted by anti-fossil fuel nuts. Here’s the real picture: In 2016, between employees and the corporation, Exxon Mobil donated more than $50 million to colleges and universities across the United States. That is a staggering number. Many of those colleges and universities were located in the Appalachian basin (Marcellus/Utica), including $2.7 million in PA, $800K in OH, $1.4 million in VA, $3.2 million in NY and $1.2 million in NJ. Just the opposite of the negative picture painted by the enemies of fossil fuels… Read More “ExxonMobil & Employees Contribute More than $50M to Higher Ed”

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    PA Appeals Court Clears Way for EQT to Drill Jefferson Hills Well

    In December 2015 MDN told you about EQT’s application to drill a single shale well in Jefferson Hills (Allegheny County), PA (see Jefferson Hills, PA Antis Oppose EQT Well Near Future School Site). The well would be drilled “near” where a new school is due to be built, which provided anti-fossil fuelers with an excuse to oppose the project. As part of the a conditional use permit, EQT agreed to (a) not use Borough roads during construction, (b) use a pipeline from a local water company instead of trucks for the water needed to drill and frack, greatly reducing the amount of truck traffic, (c) pledged the project would not impact local streams and wetlands, (d) comply with local lighting regulations, and (e) install sound walls if needed. In other words, EQT bent backwards, forwards, sideways, jump through numerous hoops and turned itself inside out to comply with requests from the town. The Borough Planning Commission unanimously approved the conditional use permit request. But then the town, bowing to pressure from local antis, rejected the request in December 2015, saying the proposed project would endanger local health and the environment. In other words, they had no basis for rejecting the permit. EQT sued and won in the Court of Common Pleas of Allegheny County in June 2016. Jefferson Hills appealed and last week, the Commonwealth Court of Pennsylvania upheld the EQT verdict saying the town arbitrarily rejected the permit and EQT should be allowed to drill…
    Read More “PA Appeals Court Clears Way for EQT to Drill Jefferson Hills Well”

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    Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline

    Click for larger version

    Last year MDN shared details about Shell’s Falcon Ethane Pipeline system–a pipeline with two “legs” that will feed Shell’s mighty ethane cracker plant in Beaver County, PA (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Before the pipeline system had a name (Falcon), Shell had begun the process of signing up landowners to allow the pipeline to cross their property–as far back as February 2016 (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). In January 2017, we reported on Shell’s progress in leasing land for the pipeline (see Shell Leases More PA Properties to Build Ethane Pipeline). This is a further update. Shell has signed an additional seven parcels of property–in Beaver County–bringing the total to 32 easements now secured for the project in Beaver County… Read More “Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline”

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    Mon Valley in Catbird Seat, Close to Both Shell & PTT Crackers

    As we have endlessly covered, Shell is in the midst of building a $6 billion ethane cracker plant in Beaver County, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Cracker plants chemically “crack” ethane to produce ethylene–the raw material used to make plastics, anti-freeze and more. As we point out in another article today, these ethane crackers (along with an ethane storage hub) have the ability to turn the Marcellus/Utica into a new Gulf Coast for petrochemical manufacturing (see Study: Appalachia the New Gulf Coast for Petchem w/NGL Storage Hub). Other cracker plants have been mentioned for the region–the most realistic being a second cracker in Belmont County, OH by Thailand-based PTT Global Chemical. PTT announced earlier this year they are delaying a final investment decision until “late 2017” (see PTT Global Delays Final Investment Decision for OH Ethane Cracker). However, most people (including MDN) think it’s a safe bet that PTT will move forward with the project. The Shell cracker, and the prospect of the PTT cracker, is stirring up a lot of interest in the part of manufacturers to locate in the Mon Valley–that area along the Monongahela River south of Pittsburgh. That region is ideally located–about an hour from the Shell cracker in Beaver County, and about an hour from the proposed PTT cracker in Belmont County, OH. We call it the catbird seat… Read More “Mon Valley in Catbird Seat, Close to Both Shell & PTT Crackers”

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    Getting to Know Rob Powelson, Our Next/New FERC Commissioner

    As MDN alerted you on May 10, President Trump has nominated two highly qualified individuals to serve on the Federal Energy Regulatory Commission–Neil Chatterjee and Rob Powelson (see Trump Nominates 2 New FERC Commissioners – Powelson & Chatterjee). Rob is a member of the Pennsylvania Public Utilities Commission (PUC), and currently the president of the National Association of Regulatory Utility Commissioners (NARUC). Big Green is amping up its opposition to Rob Powelson. In March, Powelson had the temerity to tell the truth. During a speech he compared wacko pipeline protesters who were camping out at FERC members’ homes–threatening the commissioners–to Islamic jihadists (see Powelson Under Fire for Calling Enviro Jihadists, “Jihadists”). The enviro jihadists jumped on that, demanding Powelson be dropped from consideration for a FERC post. We’re happy to see Trump metaphorically stick his finger in their eye. We spotted an article that goes into a bit more depth on Powelson’s background and qualifications to hold this very important position. Let’s get to know Rob Powelson just a little bit better… Read More “Getting to Know Rob Powelson, Our Next/New FERC Commissioner”

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    MDN Guide to the PA DEP 2016 Annual Oil & Gas Report

    The Pennsylvania Department of Environmental Protection (DEP) yesterday published its 2016 Oil and Gas Annual Report. This year the DEP has published the report in an interactive, electronic (i.e.online) format ONLY, with a stated purpose “to improve public access to well information.” This is the first time the report has been published electronically. While it’s interesting to have the report issued online only, it’s not as useful as a PDF or printed document, in our humble opinion. DEP Acting Secretary Pat McDonnell said, “Pennsylvania is the second-largest producer of natural gas in the country and one of the most transparent states in making oil and gas data publicly accessible. Making the Annual Report completely digital is just the next step in our continued effort to share as much information as possible.” We’ll give the DEP an “A” for effort, but a “C” for execution. What does the report show? The number of unconventional (shale) well drilling permits issued in 2016 decreased 59% since 2014. The total number of conventional well drilling permits issued in 2016 decreased 87% since 2014. It is a dramatic drop. There were 1,321 unconventional well drilling permits issued in 2016, and 158 conventional well drilling permits issued in 2016. Even though the number of permits to drill new wells dropped from 2015 to 2016, the number of well inspections hit an all-time high in 2016–some 35,556 inspections. The boys and girls at the DEP have been busy beavers. Below we have the DEP announcement about the new report and its format, along with select charts & information–so you don’t have to wade through the (somewhat confusing) report yourself. We call it the MDN Guide to PA’s 2016 Oil and Gas Annual Report…
    Read More “MDN Guide to the PA DEP 2016 Annual Oil & Gas Report”

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    Digital H2O Comes to the Marcellus/Utica

    Digital H2O is a “digital oilfield water management solutions company.” What the heck does that mean? Water is not only the key ingredient in life, it’s also the key ingredient in the shale industry. It takes a lot of water to drill and frack a shale well. Locating sources for that water, getting it shipped to and then from a well pad, and disposing of it, is a logistical challenge. Digital H2O helps helps drillers source water, transport it, and dispose of it–at a cheaper cost than they otherwise could have. Digital H2O accomplishes this magic with a sophisticated computer software program–populated with all sorts of information (i.e. data). Until now, Digital H2O has concentrated its service on the Permian and Bakken shale regions in Texas, North Dakota, and New Mexico. The company has now turned its attention to the Pennsylvania Marcellus and now offers it service in our neck of the woods… Read More “Digital H2O Comes to the Marcellus/Utica”