Pennsylvania

Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Range Resources Drills Longest Marcellus Well Ever – in Washington Co.
June 19, 2017July 3, 2017

Somerset Township, Washington, PA

While it’s not as long as the longest Utica well in the world drilled by Eclipse Resources (19,500 feet long, see today’s lead story), Range Resources is tooting its own horn about drilling the longest Marcellus well–a huge 15,000 feet long horizontally. Range is the company that drilled the very first horizontal Marcellus Shale well, back in 2004. In those early days, the average length of the horizontal portion of the well (called the lateral) was around 2,500 feet long (half a mile). Today, the average lateral length is closing in on 3 miles! Recently Range was drilling a series of Marcellus wells in Somerset Township (Washington County), PA. When the lateral length hit 15,000, Range knew it was a new company record. As they began checking, they found it was also a Marcellus record–in Pennsylvania, West Virginia and Ohio. The Range wells in Somerset are the (so far) longest Marcellus Shale wells ever drilled…
Read More “Range Resources Drills Longest Marcellus Well Ever – in Washington Co.”
Electrical Generation | Industrywide Issues | Luzerne County | Pennsylvania

NEPA Moxie Freedom Power Plant on Track for May 2018 Launch
June 19, 2017June 19, 2017

Artist’s rendering for Moxie Freedom project – click for larger version

In June 2014 MDN broke the news that Moxie Energy was in the hunt to begin a third new Marcellus gas-powered electric plant project in Pennsylvania, near Wilkes-Barre (see Moxie Energy in Hunt for Third Marcellus-Powered Electric Plant?). Indeed, our suspicions were borne out. In November 2015, Moxie selected Gemma Power to build the plant, and construction began a month later (see Moxie Marcellus-Powered Electric Plant Breaks Ground in NEPA). The 850-megawatt plant will use local Marcellus Shale gas to power it. Last September, Moxie contracted with EthosEnergy to run and maintain the plant (see Moxie Chooses EthosEnergy to Run NEPA NatGas Electric Plant). And since then, we haven’t heard anything. What’s the status of the plant? We spotted an update in a Wilkes-Barre newspaper from Caithness Energy (project builder) that says the project is on track to be “fully commercial next May, generating over 1,000 megawatts of electricity.” That’s interesting. Somewhere along the way the plant increased in size from 850 to 1,000+ megawatts. The update also states 23 of the 24 permanent positions are already hired and currently in training. Here’s the update…
Read More “NEPA Moxie Freedom Power Plant on Track for May 2018 Launch”
Anti-Drilling/Fossil Fuel | Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

Sunoco Seeks Injunction Against Radicalized ME2 Pipe Protesters
June 16, 2017June 16, 2017

You may recall our story about the daughter of a Huntingdon County, PA landowner, radicalized by Big Green groups (as evidenced by her association with well known protesters previously arrested), who took to a tree on her mom’s property in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). It ultimately didn’t matter, because Sunoco came back and cut down the few trees they need to cut anyway (see Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees). In December, the up-a-tree girl and her mom (Elise and Ellen Gerhart), with lawyers and backing by Big Green money, launched a final “hail Mary” pass by appealing a case to the PA Commonwealth Court, asking the court to stop the ME2 project by claiming it doesn’t have the right to use eminent domain (see Desperate Antis Try One Last Legal Maneuver to Stop Mariner East 2). Like so many other “hail Mary” desperation passes, this one never found the arms of a receiver. In May, the court turned down the appeal (see Huntingdon Family Lawsuit Against ME2 Pipeline Fails, Game Over). With nothing left to do but break the law in an attempt to block the pipeline from their property, that’s just what the Gerharts have pledged to do. That is, invite in outside help (i.e. paid protesters) to block the path, so Sunoco Logistics Partners can’t build the pipeline across their property. Sunoco has asked a Huntingdon County judge to order the family and the outsiders to step aside, or be thrown in jail…
Read More “Sunoco Seeks Injunction Against Radicalized ME2 Pipe Protesters”
Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | Taxation | West Virginia

Showdown: Comparing PA Impact Fee to WV Severance Tax
June 16, 2017June 16, 2017

Yesterday the Pennsylvania Public Utility Commission (PUC), the agency charged with keeping tabs on impact fee revenue from shale drillers (PA’s version of a severance tax), released the final numbers for impact fee revenues and disbursements in 2016 (see PA PUC Impact Fee Report: Revenue Down Again in 2016). Revenues were from the impact fee were down for the third straight year. And since politicians in Harrisburg are in the midst of budget negotiations and attempting to close a perennial gap in the budget, we have no doubt the hew and cry will go out, yet again, to enact a severance tax on shale gas and oil–either in addition to or on top of the impact fee. We’ve written about PA Gov. Wolf’s (and his fellow Democrats’) manifestly dumb idea of implementing a severance tax (see our numerous stories on the topic here). The new argument that will be used in Harrisburg is this: If we only had a severance tax, we wouldn’t experience as much of a decrease in revenue as we have with an impact fee. This post aims to debunk that claim. In fact, an impact is far superior to a severance tax (the tax “everyone has but us here in PA”). Why so? Because, as the numbers below show, PA’s decrease in revenue from an impact fee has been far less than the drop in severance taxes in other states, like West Virginia…
Read More “Showdown: Comparing PA Impact Fee to WV Severance Tax”
Beaver County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Pipelines | Shell

New Easement for Shell Ethane Cracker Pipeline Reveals Price Paid
June 15, 2017June 16, 2017

Bit by bit, piece by piece, Shell is getting landowners in Beaver County, PA to sign easements for its 94-mile Falcon Ethane Pipeline–a pipeline with two “legs” that will feed Shell’s mighty ethane cracker plant. MDN exclusively broke the news in February 2016 that Shell had begun to sign leases with landowners for the pipeline (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). As we later learned, it’s “one” pipeline with “two” legs or branches. There were more easements signed in January (see Shell Leases More PA Properties to Build Ethane Pipeline), and again in May (see Another 7 Easements Signed for Shell’s Falcon Ethane Pipeline). The latest news is that Shell has acquired another 3,183 feet. What’s different this time, however, is that we know how much Shell paid to lease those 3,138 feet. We’ve not seen any mentions of payments in the past (Shell preferring to keep it private). We won’t keep you in suspense, the price paid works out to be $75 per foot…
Read More “New Easement for Shell Ethane Cracker Pipeline Reveals Price Paid”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA PUC Impact Fee Report: Revenue Down Again in 2016
June 15, 2017June 15, 2017

Each June, the Pennsylvania Public Utility Commission (PUC), the agency charged with keeping tabs on impact fee revenue from shale drillers (PA’s version of a severance tax) releases the final numbers of impact fee revenues and disbursements. Today is the appointed day for 2016 impact fees. The PUC reports impact fees on natural gas producers in 2016 totaled $173,258,900–the lowest annual revenue generated from the fee to date (since the fee began in 2011). However, 2016 was the low point for drillers drilling new wells–the bottom of the valley in the oil and gas industry. Since mid-2016 we’ve been on an upswing in drilling new wells, which will no doubt be reflected in 2017 impact fee revenues. We have the PUC press release below, and screenshots for many of the pretty color pie charts showing topline numbers. What was the #1 county receiving impact fee revenue (meaning the #1 county drilled) in 2016? Washington County. The driller paying the most in impact fees in 2016? Range Resources. The municipality receiving the most revenue from impact fees? Interestingly, that would be Cummings Township–in Lycoming County. Here’s the 411 on impact fees (i.e. taxes) raised and spent in PA for 2016…
Read More “PA PUC Impact Fee Report: Revenue Down Again in 2016”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

PA Court Rules Fracking Not ‘Abnormally Dangerous’ Under PA Law
June 14, 2017June 14, 2017

An article in the left-leaning Harrisburg Patriot-News has this incendiary opening: “Is it ‘abnormally dangerous’ to drill and frack for oil under a massive oil refinery, particularly if that well is bored beneath a tank filled with 3.6 million gallons of gasoline? A decision issued by a divided Commonwealth Court panel on Monday will give a Pennsylvania community a chance to find out.” In a court decision filed on Monday, the Commonwealth Court of Pennsylvania will allow a driller to drill and frack a well that is close to (but not directly underneath) the above-ground 3.6 million gallon petroleum tank. At first blush, especially when reading an opening like the one in the Patriot-News story, the average reader would think such a plan is stark raving mad. But when you dig into the details, a far different story emerges. As usual, mainstream media misrepresents many of the facts. We’re here to sort it out for you…
Read More “PA Court Rules Fracking Not ‘Abnormally Dangerous’ Under PA Law”
Energy Companies | Industrywide Issues | Litigation | Olympus/Huntley & Huntley | Pennsylvania | Regulation | Westmoreland County

Westmoreland Zoning Challenge Heads to Court, Delays H&H Drilling
June 14, 2017June 14, 2017

Westmoreland County townships (Click for larger version)

In May MDN told you that Huntley & Huntley was conducting seismic surveys in Lower Burrell, in Westmoreland County, PA (see Huntley & Huntley Targets New Drilling in Westmoreland County, PA). When a company begins to conduct seismic surveys, you know that applications for drilling permits are not far behind. Next door to Lower Burrell is Upper Burrell. H&H plans to drill there too. A landowner in Upper Burrell filed an appeal against Upper Burrell’s zoning ordinance that allows drilling in rural, agricultural districts. H&H plans to drill a well near where this woman lives, and she’s arguing such drilling will violate the state’s environmental rights clause and (more importantly), “devalue her property.” Of course nothing of the kind has happened in areas where there is drilling. Quite the opposite, in fact. Still, the lawsuit is stopping H&H from sinking any new holes in the ground. 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. The only problem with that is the judge may decide to hold off on a decision until two similar cases are heard and decided by the PA Supreme Court. No telling how long that will take…
Read More “Westmoreland Zoning Challenge Heads to Court, Delays H&H Drilling”
Columbia County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Transco | Williams

Atlantic Sunrise Hearing in Bloomsburg Repeat of Previous Hearings
June 14, 2017June 14, 2017

As we reported yesterday, the first two (of four) public hearings were held on Monday by the Pennsylvania Dept. of Environmental Protection (DEP) to elicit comments on the proposed $3 billion, 198-mile Atlantic Sunrise Pipeline, an expansion of Williams’ Transco Pipeline system (see Atlantic Sunrise Supporters Far Outnumber Antis at PA DEP Hearings). Supporters of the pipeline far outnumbered opponents at both hearings, which has left antis spitting and sputtering: “How did we get outmaneuvered?” The third hearing was held last night, in Bloomsburg, PA (Columbia County). How did it go there? Pretty much a repeat of the meetings on Monday night: supporters far outnumbered opponents of the pipeline. Like the other meetings, a somewhat odd alliance between the local Chamber of Commerce and labor unions provided many of the supporters who attended–to talk about the jobs and enormous positive economic impact of the project…
Read More “Atlantic Sunrise Hearing in Bloomsburg Repeat of Previous Hearings”
Allegheny County | Meetings | Pennsylvania

DUG East Coming to Pittsburgh June 20-22
June 14, 2017June 14, 2017

If you’re deeply involved, or even peripherally involved, with the Marcellus/Utica, there are two events each year that you should attend. One of those events is DUG East (hosted by Hart Energy), and the other is Shale Insight (hosted by the Marcellus Shale Coalition). DUG East will be held next week in Pittsburgh. Unfortunately MDN will not be able to attend this year (we did last year). But we have reviewed the agenda and we can highly recommend next week’s event. Next week you will find out what’s working, what’s not and what’s next for upstream producers and midstream operators in the Marcellus and Utica–the biggest natural gas-producing region in the United States…
Read More “DUG East Coming to Pittsburgh June 20-22”
Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Regulation | Transco | Williams | Wyoming County (PA)

Atlantic Sunrise Supporters Far Outnumber Antis at PA DEP Hearings
June 13, 2017June 13, 2017

Yesterday saw the first two (of four) public hearings being hosted this week by the Pennsylvania Dept. of Environmental Protection (DEP) to elicit comments on the proposed $3 billion, 198-mile Atlantic Sunrise Pipeline, an expansion of Williams’ Transco Pipeline system. One of yesterday’s meetings was held in Lancaster (Lancaster County), and the other in Tunkhannock (Wyoming County). The striking thing about both meetings is that they were not the usual circus freak shows by anti-fossil fuelers we’ve come to expect. Indeed, in both venues, an overwhelming majority of those speaking were there to speak IN FAVOR of the projects. Oh, there were detractors, to be sure. Nonsensical statements made by people like Malinda Clatterbuck, one of the locals in Lancaster who is attempting to turn Lancaster into another North Dakota fiasco. Clatterbuck said “angst over the pipeline has caused premature births, divorces and heart attacks” among people she knows. Complete rubbish. Anyone can say (or do) anything at these hearings. Mark Clatterbuck (Malinda’s husband) also spoke. Mark was a protester in North Dakota against the Dakota Access Pipeline. He warned (threatened?) DEP representatives of a coming “community uprising” against the Atlantic Sunrise pipeline. Even though there was some opposition like the clattering Clatterbucks at last night’s hearings, the big news is that their opposition was drowned out by supporters of the pipeline project. And that’s good news for all Pennsylvanians…
Read More “Atlantic Sunrise Supporters Far Outnumber Antis at PA DEP Hearings”
Butler County | Energy Companies | Pennsylvania | Rex Energy

Rex Energy Crows re Results from New 4-Well Pad in Butler County, PA
June 13, 2017June 13, 2017

Rex Energy began selling natural gas, gas liquids and condensate from its four newest wells, part of the “Baird” pad (in Butler County, PA) on May 31st. The company issued a press release yesterday to do some well-deserved crowing about their wells. Two of the wells (the 1H and 4H) are Marcellus wells and initial production is averaging 12.1 million cubic feet equivalent per day (Mmcfe/d). The other two wells (the 2H & 3H) target the Upper Devonian layer and initial production for those wells has been 8.1 Mmcfe/d. Rex also posted a new company PowerPoint presentation (full copy below) which shows a new 6-well pad in Butler County will go online to sales in August, another 4-well pad in September, and a 2-well pad and 4-well pad sometime in the fourth quarter. In addition, Rex expects to begin drilling a 3-well pad in the Ohio Utica (in Carroll County) in July…
Read More “Rex Energy Crows re Results from New 4-Well Pad in Butler County, PA”
Electrical Generation | Industrywide Issues | Pennsylvania | Regulation | Washington County

Details on New Marcellus-Fired Electric Plant Coming to Robinson Twp
June 12, 2017June 12, 2017

In delicious irony, Robinson Township (Washington County), PA, one of the original seven selfish towns that sued Pennsylvania and eventually won at the PA Supreme Court, overturning a portion of the state’s 2012 Act 13 shale drilling law (granting towns the right to self-regulate some aspects of oil and gas drilling by using onerous zoning ordinances), is about to get a new Marcellus gas-fired electric plant. That is, a plant that burns the stuff they don’t like drilled. In April, MDN shared a list of five new Marcellus gas-fired plants coming in Southwestern PA (see 5 Big & Small Marcellus-Powered Electric Plants Coming in SWPA). In that list was a project called Beech Hollow Power Plant, to be built by Robinson Power Co. LLC. Other than a mention the plant would generate 950 megawatts of electricity (later revised to 1,000 MW), we really didn’t have any details. Until now. The PA Dept. of Environmental Protection (DEP) issued a press release last week to say a public hearing will be held on July 12 at the Fort Cherry Jr./Sr. High School Auditorium in McDonald, PA to accept comments on the project. In issuing the press release, the DEP also posted a couple of documents filed by Robinson Power in applying for the project. It’s pretty much everything you would want to know about the project, chapter and verse. We have it for you below…
Read More “Details on New Marcellus-Fired Electric Plant Coming to Robinson Twp”
Anadarko | Chesapeake Energy | Energy Companies | Energy Services | Equinor/Statoil | Industrywide Issues | Lease & Royalty Payments | Litigation | Mitsui | Pennsylvania | Statewide PA | Williams

NEPA Landowners Fight to Sue Chesapeake’s Partners
June 12, 2017June 12, 2017

We’re going to take a stab at this, and we are not confident we will get it 100% right. With that as a warning, we recently reported that a case brought by landowners in northeastern PA against Chesapeake Energy over unwarranted royalty deductions suffered a bit of a setback (see Chesapeake Scores Court Victory to Prevent PA Royalty Class Action). Essentially, the landowners (in this case Scout Energy) argued that since the leases signed say royalty disputes must go to arbitration, we want mass arbitration. A class action, in other words. In May, U.S. District Judge Matthew Brann of the Middle District of Pennsylvania (overseeing the case) issued an opinion that said Chesapeake is right in demanding each case get arbitrated individually–not as part of a class action. The landowners in four cases (all of which seem to be joined, or at least moving along together) filed briefs last week to make a new argument. And here’s where we are not 100% sure, but we think the argument is this: OK, we have to go to arbitration and now it has to be individually. However, there are other defendants named in the case (Anadarko, Williams, Statoil, Mitsui E&P). Since the lease language says the lease is between the landowner and the driller (i.e. Chesapeake), that means the other defendants are NOT covered by the arbitration clause and we (the landowners) can still sue them as a class action. Why? Because (allegedly) those companies colluded together with Chesapeake to “reduce, restrain or eliminate competition for gas and mineral rights, operations rights and gathering serves in multiple counties in Northern Pennsylvania.” Oy vey! It keeps getting more complicated as the days go by…
Read More “NEPA Landowners Fight to Sue Chesapeake’s Partners”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

MSC Tells PA DEP What it Thinks of Onerous New Methane Regs
June 12, 2017June 12, 2017

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 shale industry is calling this a potential 5-alarm fire–a direct threat to Marcellus drilling (see Unmasking PA DEP’s War on Shale via Methane Regulations). The Marcellus Shale Coalition (MSC) has raised awareness of this issue from the beginning, and attempted to work with the DEP to modify the rules. To no avail. The DEP presses forward. So the MSC filed their own official, specific objections to both GP-5 and GP-5A with the DEP last week. We scored a copy of those comments and have them below…
Read More “MSC Tells PA DEP What it Thinks of Onerous New Methane Regs”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

Reminder: Public Hearings This Week for Atlantic Sunrise Pipeline
June 12, 2017June 12, 2017

Just a quick reminder that the Pennsylvania Dept. of Environmental Protection is conducting four public hearings, beginning today and running through Wednesday, for the Williams Atlantic Sunrise Pipeline project. If there is any way you can make it to one of the hearings to show your support for the project, do it! Below is the DEP announcement sharing the locations for the hearings. Today are two hearings, both from 6-9p, one in Tunkhannock and the other in Lancaster. Tomorrow the hearing is in Bloomsburg, and Wednesday in Annville. Come out to support this critical pipeline project…
Read More “Reminder: Public Hearings This Week for Atlantic Sunrise Pipeline”