UGI Marcellus-fed LNG Plant in NEPA Now Online
In May 2015, MDN brought you news that UGI Energy Services, a subsidiary of northeast PA utility giant UGI Corporation, announced they will spend $60 million to build a new LNG production plant in Wyoming County, PA (see UGI Building LNG Plant in NEPA, Local Marcellus Gas to Feed It). The facility will liquefy locally produced Marcellus Shale gas–with a capacity of up to 120,000 gallons of LNG per day. There will also be a storage facility on site. UGI said the market for LNG is rapidly growing. Not only do trucking fleets, like UPS, use it, but drillers use it to power rigs and industrial plants use it in locations where there are no natural gas pipelines. Some good news to report: The plant is built and now in operation…
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The lengths to which the leadership of the Democrat Party in Pennsylvania is willing to go to tax Marcellus Shale drillers is amazing. And alarming. As we have pointed out, repeatedly, PA does not have a revenue shortfall problem–it has a spending problem. Like an alcoholic you can’t reason with and convince to stop drinking, PA Dems are taxaholics–addicted to sticking their fingers in other people’s pockets to transfer money to voters who will keep them in office. That’s the sleazy, disgusting mess in Harrisburg going on right now. Republicans stupidly voted to pass a $32 billion state budget with only $30 billion of it covered by current revenue sources. So now the pressure is on to cover the “gap” between expected revenue and overspending. From the very beginning of Gov. Tom Wolf’s tenure as the most failed governor of PA in our lifetime, we pointed out Wolf’s desire and plan to pass a new tax on a single industry, the Marcellus industry, as nothing more than political payback for teacher’s unions. The unions supported and voted for Wolf, and he dearly wants to give them money via a new severance tax, as payback. The interesting/jaw-dropping thing is, the teacher’s unions admit it! They admit, openly via a recent op-ed article penned by Jerry Jordan, president of the Philadelphia Federation of Teachers, that a severance tax is needed for union members. Do Pennsylvanians not see this for what it is–theft and political graft? Jordan wants PA legislators to aim the gun of the government at the heads of drillers (and landowners), take their money, and hand it over to union members…
When huge ethane crackers like the proposed Shell cracker in Beaver County, PA use steam to “split” or “crack” ethane to form ethylene (the raw material used to make plastics), it takes a lot of energy, and there’s a lot of “leftover” energy and leftover carbon dioxide (CO2). As the mythology goes, more CO2 in the atmosphere leads to global warming (if you believe in that sort of thing). Scientists have long known of other ways to convert “heavier” hydrocarbons, like ethane, into “lighter” hydrocarbons, like ethylene, using metals via a chemical process. But the metals used are rare and expensive–things like rhodium, ruthenium and iridium. Researchers at the University of Pennsylvania say they have found a way to use cheaper, more abundant metals, like titanium, to transform natural gas, ethane and other hydrocarbons into more useful chemicals like ethylene. The big bonus? No leftover CO2 to worry about…
NGI’s Shale Daily has done it again. Ace reporter Jamison Cocklin has unearthed news that (so far) no one else has: Rice Energy has quietly, confidentially, hush-hush purchased all of the assets of LOLA Energy. The sale raises a lot of questions. But first, who is LOLA? No, not the show girl in Barry Manilow’s 1978 hit song Copacabana. LOLA Energy was birthed near the end of 2015, by former EQT executives using $250 million of private equity money from Denham Capital (see 
Radical anti-fossil fuelers with THE Delaware Riverkeeper and New Jersey Sierra Club, along with a mish mash of other fringe “environmental” groups, are becoming shrill in their demand that fracking be permanently banned in the Delaware River Basin. Riverkeeper, Sierra Club and other nutjob groups are this week delivering a petition they claim has over 63,000 signatures (many of them made up or dead) calling on the governors of the four states that are part of the Delaware River Basin Commission (DRBC) to vote to permanently ban fracking in the DRBC’s jurisdiction. Each day this week the group of, whatever you call them, are delivering the petitions in staged media events, in each state capital. These groups have wanted and lobbied for a permanent ban for years. Why push so hard for it now? What’s the urgency? Why go on the road now to demand an outright ban? There is only one reason we can think of for why these radicals are pushing so hard now: they are running scared, concerned that a lawsuit by a Wayne County landowner in federal court will go against the DRBC and finally force the issue, allowing fracking (see 
West Goshen Township, in the Philadelphia suburb of Chester County, has won a short-lived, temporary victory in their efforts to stop Sunoco Logistics’ Mariner East 2 NGL pipeline in its community. Last March MDN told you about the desperate last stand taken by liberal anti-pipeliners in West Goshen (see 
Since 2012, Pennsylvania has collected the equivalent of a severance tax from Marcellus Shale drillers via something called an impact fee. Same concept as a severance tax. You drill a well, gas comes out, you pay a tax. Except with an impact fee you pay whether or not anything comes out of the ground, meaning an impact fee is superior to a severance tax, which is based on how much comes out of the ground. The impact fee quickly started to generate hundreds of millions of dollars a year in extra revenue for Pennsylvania–60% of which goes back to the communities where drilling happens (which Philadelphia politicians hate), and 40% of which goes to the black hole of Harrisburg for redistribution (which Philadelphia politicians love). Drilling began to slow in 2014, and crashed in 2015/2016, with low low commodity prices for natgas. The impact fee doled out this year is based on revenues raised last year, in 2016, during the worst part of the downturn. So it’s no surprise that impact fees collected and distributed this year, in 2017 have been the lowest since the impact fee began (see 
Last Thursday some 450-500 supporters, oil and gas industry workers and politicians gathered at the Shadowbrook Golf Course in Wyoming County, PA to express support for Williams’ $3 billion, 198-mile Atlantic Sunrise Pipeline project, most of which will get built in northeast Pennsylvania. The event was organized and sponsored by Cabot Oil & Gas, one of the major beneficiaries of the pipeline, and Williams, which will build and operate the pipeline. The overall purpose of the event was to give a metaphorical kick in the rear-end of Gov. Tom Wolf and his Dept. of Environmental Protection (DEP), which appears to be intentionally dragging its feet with granting stream crossing permits–about the only thing left before the backhoes fire up and start digging. The event, held from noon to 2pm, began with lunch–barbecue pulled pork and chicken–followed by a series of short speeches by political leaders from the region. With people gathered at tables, and some standing, a half dozen speakers stood on a giant flatbed trailer underneath what has to be the biggest American flag MDN editor Jim Willis has ever seen, hoisted and held between two large cranes (see the pic). The upshot of the speeches can best be summarized in a single statement delivered by Alan Hall, Chairman of the neighboring Susquehanna County Board of Commissioners, when he said: “It’s time to kick the politicians in the ass and get this [pipeline] done.” There were some other great one-liners too…
Apparently under pressure from environmentalist wackos, last Friday the Pennsylvania Dept. of Environmental Protection (DEP) issued a statement that says, in essence, we’re on the back of Sunoco Logistics over problems with construction the Mariner East 2 Pipeline. Gov. Wolf and DEP Secretary McDonnell both felt it necessary to voice their “concerns” over some of the episodes that have happened with construction the twin Mariner East 2 NGL pipelines that will stretch from eastern OH to the Philadelphia area. According to the announcement, the DEP has so far issued 4 “Notices of Violation” and 1 “Consent Order and Agreement” with a fine of $87,600 for “inadvertent returns” (what we call leaks) of drilling mud and water at an underground horizontal directional drilling (HDD) location in Cumberland County, PA. To the best of our knowledge, this is the first we’ve heard of that spill. It was actually a series of spills (or leaks) over a number of different days. All told, some 160,000 gallons of drilling fluids came out of the ground at that location. In addition, the DEP released a table outlining 49 incidents–some just a few gallons, others several hundred (or several thousand) gallons of drilling fluid leaks. We have the list of 49 problem areas below, the details on the Cumberland County leaks, and the DEP announcement…
The “most serious remaining legal challenge” to Sunoco Logistics’ Mariner East 2 Pipeline project is a challenge by the odious Big Green group, the Clean Air Council, based in Philadelphia. CAC claims in a court case in Common Pleas Court in Philly that ME2 violates the federal and state constitutions. The case takes up constitutional claims that have “not yet been addressed in other litigation.” It dawned on us when reading an account of the case and who says what about whether or not Sunoco has the right to use eminent domain and whether or not ME2 is a public utility, is why does the CAC even care? Why are they the ones bringing the lawsuit? After all, pipelines don’t pollute the air! Well, technically that’s not 100% true–pipeline compressor stations do emit some air pollution, depending on how they are powered (diesel engines). But at the end of the day, pipelines pollute the air far less than other forms of transportation, like trucks and trains. How does CAC even have “standing” to bring such a lawsuit? Of course the fact that CAC is litigating is a tip-off that there is Big Green money behind the effort–and CAC is just a tool being used in a wider collusion (conspiracy?) to stop the pipeline…
In December 2015, Pennsylvania’s felony-indicted Attorney General, Kathleen Kane (now gone), brought a lawsuit against Chesapeake Energy, Anadarko and Williams accusing them of, among other things, royalty fraud (see 
The Federal Environmental Protection Agency (EPA), which is the agency in charge of approving oil and gas wastewater injection wells, will hold a hearing next Wednesday in Plum, PA (Allegheny County, near Pittsburgh) on whether or not to approve 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. Typically when a hearing like this is held, it’s an indicator that the EPA will approve the project. However, just because the EPA approves it doesn’t mean it’s a done deal. After an EPA approval, the application then goes to the PA State Dept. of Environmental Protection where it goes through another round of reviews–and likely more public hearings. The stuff getting disposed of, which we generically call wastewater, is technically called brine, because of it’s salty/mineral-ly composition. Brine is naturally occurring water from the depths that comes out of oil and gas wells for years after they are drilled. Because of the high concentration of minerals in the water, it either must go through a rigorous recycling process, or get disposed of via an injection well. OH has more than a hundred such wells. WV has a few dozen. PA has less than a dozen, due to the geology needed. Every new injection well in PA is a big deal, including this one…
Not long after Michael Krancer was appointed Secretary of the Pennsylvania Dept. of Environmental Protection in 2011, he “requested” (which was more order than request) that municipal sewage treatment plants still accepting and processing Marcellus drilling wastewater stop the practice. At the time there were 15 plants accepting Marcellus wastewater. Under pressure from Krancer, they ended the practice in May 2011 (see 
While we wrote about a Penn State research study today that appears legitimate, but seven years too late (see New Penn State Frack Wastewater “Study” Beats a Dead Horse), there is another recently published Penn State study that is also legit that is not yet a huge issue, but certainly has potential to be a big deal. Penn State’s College of Agricultural Sciences has found that invasive, non-native plants are making significant inroads with shale gas development in Pennsylvania, with negative consequences for PA forests. How so? The invasive, non-native plants are hitching a ride on gravel and equipment used to create roadways in forested areas, and once those plants take root, they crowd out local, native plants. The study, titled “Unconventional gas development facilitates plant invasions” and published in the Journal of Environmental Management, concludes that more monitoring and early detection can help put a lid on the problem…
Once again it’s necessary to counter the false narrative in Pennsylvania media that “Pennsylvania is the only state without a severance tax” and “a severance tax will magically fix our over budget mess.” Last week MDN brought you news that 12 so-called Republicans in the PA House were behind an effort to force a vote on a severance tax (see 
Anti fossil fuelers believe they have a new angle in their years-long war to prevent Sunoco Logistics Partners from building the Mariner East 2 twin pipelines across the state: drilling mud spills. When a pipeline company installs a new pipeline, the vast majority of pipe is laid in trenches. However, there are places (creeks, rivers, wetlands, roadways) where you can’t just dig a trench to lay the pipe. In those cases, you drill underground horizontally, something called horizontal directional drilling (HDD). When you drill through rock, you need drilling mud to cool the drill bit as it chews away. Drilling mud is typically bentonite, a non-toxic clay substance used to manufacture things like toothpaste, cosmetics and kitty litter. The only threat from bentonite is that it can smother aquatic life if enough is spilled. Or it can foul a water aquifer–making the water in your well cloudy for a period of time, until it settles. Such an instance recently happened in Chester County, when Sunoco’s drilling for ME2 fouled an aquifer, causing well water for some 15 homes to become temporarily unusable (see