Pennsylvania

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    Marcellus Gas Now Powers Mohegan Sun Casino in the Poconos

    Mohegan Sun Pocono CEO & President, Anthony Carlucci, UGI Energy Services President, Joe Hartz, Director of Capital Expenditure for Mohegan Gaming & Entertainment, Jeff Seidel, and UGI Business Development Manager, Steve Johnson, all spoke at and celebrated this milestone. In attendance also, was Cassandra Coleman with the Pennsylvania Governor’s office and Chief of Staff for Pennsylvania Rep. Mike Carroll, Ron Ralston.
    Click for larger version

    The Mohegan Sun Pocono casino, located near Wilkes-Barre, PA, is now powered by Marcellus Shale gas. On June 20 casino officials along with utility giant UGI and local/state politicians gathered to unveil an all-new co-generation energy plant at the casino. The plant uses Marcellus Shale gas to create electricity. The resulting heat is also trapped and used, to heat water, etc. (the “co” in co-generation). The plant cost $3 million to build. Roughly $1 million from a grant from the Commonwealth Financing Authority. The new plant reduces the Mohegan Sun Pocono casino’s so-called carbon footprint by 3,900 metric tons annually–it’s like taking 820 cars off the road. Here’s the story of how a fossil fuel–Marcellus Shale gas–is helping to clean up the environment, and make it cheaper to run the slot machines, at the same time…
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    Ambulance Service Sues Rice Energy for $27K re Jan. Well Pad Fire

    In January, MDN reported on a well pad fire at Rice Energy’s Papa Bear well pad in Somerset Township (Washington County), PA (see Explosion & Fire at Rice Energy Drill Pad in Washington County, PA). Although no one was hurt, the explosion and fire ended up ruining six of the 20 pumps, and damaging four pumper trucks. As might be expected, local first responders were called to the scene, including four ambulances from Bearcat EMS Inc. Following the initial incident, Bearcat sent a bill to Rice for $26,742 to cover their costs of responding. Rice responded that they didn’t call Bearcat, and that Bearcat didn’t actually do anything, so they don’t owe them a penny. Bearcat, in paperwork filed in a lawsuit against Rice, says even though they didn’t help Rice personnel/contractors, they did provide services to other EMS staff at the scene, over a four-hour period. Therefore, pay up. The matter now sits in court…
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    PA Budget Massively Overspends, Increases Pressure for Sev. Tax

    Pennsylvania does not have a revenue problem–it has an overspending problem. Once again the Republican-majority legislature in PA is caving to the siren song/pressure of wild-spending, liberal Democrats and will pass a budget that is $2 billion over the revenue they can reasonably expect–sprinkled with giveaways like an extra $100 million for teachers unions–and beginning next week the Republicans will face a barrage of media stories and pressure to create a severance tax to help make up the difference. Already we’re seeing stories about the need for a “fair gas tax” and that a severance tax is “long overdue.” What about passing a “fair budget” that doesn’t overspend? What about “fiscal responsibility” that’s long overdue? Where are those stories? And, when will Republicans learn to quit playing the Dem’s game?…
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    PA Dems Continue to Push Severance Tax Instead of Spending Cuts

    Pennsylvania does not have a taxing problem, as people like Gov. Tom Wolf pretend–it has a spending problem, as in they spend beyond their means. The last governor that tried to correct that problem–Tom Corbett–got handed one term in the big chair for his efforts at dealing honestly with it. Big Education and Big Labor knifed Corbett in the back, politically, after he cut the mammoth increase in their growth. (FEED ME FEED ME) If you want to know why PA is in budget trouble, look no further than it’s Secretary of the Dept. of Community and Economic Development, Dennis Davin. Every econ growth guy we’ve ever talked to knows that increasing taxes gets less of what you tax–it is an incontrovertible fact in economics. Yet Davin, who’s boss is utter failure Tom Wolf, is pushing hard for a huge tax increase on the Marcellus industry–the very industry that has singlehandedly kept PA out of an economic abyss. And yet the guy who should understand the issue the best, is pushing hardest for the tax. That tells you all you need to know about the Wolf Administration and it’s utter failure…
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    PA Anti Strategy: Weaponize Recent Court Ruling Against Shale Dev

    It’s clear that radical environmentalists who (irrationally) oppose the use of fossil fuels believe the recent decision by Pennsylvania Supreme Court is a gift from Gaia (Mother Earth goddess). As MDN previously reported, last week the Pennsylvania Supreme Court of Appeals, in a sharply divided 3-2 decision, sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and drilling on state-owned land MUST be used solely for conservation and the environment (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). However, denying the state Dept. of Environmental Conservation (DCNR) from funding itself with lease/royalty revenue was inconsequential, a distraction from the real aim. The decision, according to the radicals, further strengthens the state’s so-called Environmental Rights Amendment to the state constitution. What it means, in very practical terms, is that the antis now plan to use a decision ostensibly about how a single state agency gets its funding, to apply the philosophical underpinnings (the right to a clean environment) as a weapon against judges and the Dept. of Environmental Protection (DEP), to force them to consider whether or not issuing a given permit for a project “harms” the “rights” of PA citizens to a “clean environment.” In other words, the radicals are weaponizing a court decision to use against the shale industry–and they’re signaling, via their sycophantic mouthpieces at StateImpact Pennsylvania, that’s exactly what they intend to do…
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    Pittsburgh Suburb Moves to Regulate Seismic Testing by H&H

    One of the first steps before a company decides to drill for shale gas (or oil), is to conduct a seismic survey–bouncing sound waves through the rock layers a mile or more down–to “see” what the geology looks like. It helps drillers target locations with the best possibility of success, which is a good thing for everyone (no unnecessary “misses” when drilling a well). One of objectives of the original Act 13 law passed in PA in 2012 was to provide uniform zoning ordinances for the oil and gas industry, so drillers don’t have to work with a crazy quilt patchwork of zoning requirements in every new town in which they drill. That failed when seven selfish towns filed a lawsuit that ultimately went to the PA Supreme Court, where the towns won the right to pass their own zoning regulations for oil and gas drilling (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). So now drillers have to face different standards/restrictions/rules in every town where they drill. Thank you seven selfish towns! Huntley and Huntley is one of those drillers. In May MDN told you that H&H is conducting seismic surveys in Westmoreland County (see Huntley & Huntley Targets New Drilling in Westmoreland County, PA). H&H now wants to conduct seismic surveys in neighboring Allegheny County, in the Borough of Oakmont (suburb close to Pittsburgh, northeast side of the city). Because of H&H’s interest, Oakmont has (surprise!) proposed a new seismic survey ordinance. We have a copy of the 9-page ordinance below. Oakmont will hold a special meeting on July 3rd to discuss it…
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    Shell Gets Important Wastewater Permit for Beaver Cracker Plant

    It was more than six months in the making, but finally the Pennsylvania Dept. of Environmental Protection has granted Shell a permit that allows the facility to discharge wastewater and storm water into the Ohio River. Which may sound like Shell just got a permit to pollute the Ohio River–but that’s not what is happening. Shell is building their mighty $6 billion ethane cracker on a site formerly used as a zinc smelter. The old Horsehead Corp. plant held a permit that allowed the plant to discharge wastewater with some total dissolved solids (TDS) into the Ohio. When Shell bought the site, they also inherited the Horsehead permit for wastewater discharge. Shell filed a plan back in December with the PA DEP to modify that permit for the forthcoming cracker plant (see Shell Cracker Wastewater Discharge Becomes an Issue). So-called environmentalists jumped up and down like a rattlesnake had entered the room–but their showboating had no effect. After six months of review, the DEP has determined Shell’s wastewater request is OK by them, and will not unduly harm the environment. So last Friday, the DEP issued a National Pollution Discharge Elimination System (NPDES) permit amendment for the cracker plant. This is an important step, without which construction on the plant would not begin…
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    Lancaster Anti-Pipeliners Reach New Low with Fake Graveyard

    Just when you thought you’ve seen how low some anti-pipeline fanatics will go, they surprise you and go even lower. Antis set up a fake graveyard with a half dozen authentic, 19th century tombstones, right next to a pipeline right of way for the Williams Atlantic Sunrise Pipeline in Lancaster County, PA. Williams is hypersensitive to ensure they don’t violate any “Native American” or other kinds of historic sites. So when they came across the fake graveyard, they thought it was real and proceeded as such, spending time and money to plan a route for construction that would protect the fake site. And antis, with full knowledge, lied to Williams’ people (not telling them is the same as lying in our book). And laughed their considerable derrieres off the entire time, wondering when those poor dunderheads at Williams would figure it out. Now Williams may have the last laugh, because what the antis did is fraud and prosecutable. So-called local Native Americans (i.e. Indians) were in on the “joke.” And now those Indian activists have the gall to say if Williams didn’t recognize something as fake, how will they recognize real Indian artifacts that need protecting? We ask a different question: Who will ever believe these so-called Native American activists again–when they are self-professed liars?…
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    PA DCED Sec Davin Visits Shell Cracker Site, Pushes Severance Tax

    Dennis Davin

    Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED) took a field trip to visit the Shell ethane cracker site in Beaver County, PA last Friday. Davin was there to do some justified bragging about the facility and what it will mean for the Keystone State over the next 10 years. However, Davin was also there to push for a disastrous severance tax plan. Davin is a smart and competent guy. But he’s also a Democrat and his boss, Gov. Tom Wolf, sends Davin out to try and sell what can’t be sold: a severance tax that would literally kill the Marcellus Shale, the very thing making the Shell cracker plant a reality. Talk about conflicted! But Davin was there to do his master’s bidding, and that he did…
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    Radical Enviros Now the Tail Wagging the PA DCNR Dog re Funding

    As they so often do, radical environmentalists are creating chaos and confusion–this time in Pennsylvania. As MDN reported, earlier this week the Pennsylvania Supreme Court of Appeals, in a sharply divided 3-2 decision, sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and drilling on state-owned land MUST be used solely for conservation and the environment (see PA Supreme Court Hands Antis Partial Victory re State Land Drilling). The aim of the PA EDF is to disrupt Marcellus Shale drilling by any means necessary. This is one of those means. The three liberal justices who rendered the decision say the law is clear on intent–that money raised from leasing state-owned lands for drilling must be used for environmental purposes. Now the PA EDF is arrogantly telling the State of Pennsylvania that the money raised from drilling can’t be used for general operating expenses of the Dept. of Conservation and Natural Resources (DCNR)–the very organization that oversees the state lands and is in charge of said leasing. In the upcoming budget, due to be ratified by June 30th, PA Gov. Tom Wolf and the legislature had planned to use $100 million from the lease and royalty fund to “pay for DCNR’s daily operations or be transferred to another fund for statewide environmental and infrastructure projects.” But in an ominous threat, the EDF lawyer said spending money on DCNR operations “doesn’t comply with the court opinion on how the funds can be used.” Which begs the question: What in the world CAN you spend the $100 million raised from royalties and lease fees on?…
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    Braskem Says Future Investment in Marcus Hook Still Possible

    Nearly five years ago, in July 2012, then-PA Gov. Tom Corbett announced that some of the Sunoco Marcus Hook Refinery assets had been purchased by Braskem America (see Marcellus to the Rescue: Marcus Hook Refinery to Reopen). Braskem, a division of Brazilian company Odebrecht, uses the Marcus Hook facility to manufacture polypropylene plastics. The facility gets some of (most of?) its raw materials (i.e. ethane) from the Marcellus Shale. Interestingly, Braskem’s US operations are headquartered in Philadelphia. When it came time to invest $675 million to build a new polypropylene plant–Braskem chose Texas as the site, not Marcus Hook in their own back yard. Which is a huge disappointment. Why the Texas Gulf Coast? Because of “a ready supply of raw material from nearby petrochemical operations.” But that may not be the end of the story. Braskem CEO Mark Nikolich said just because they chose Texas for this project, doesn’t mean they still don’t love Marcus Hook just as much–and it doesn’t rule out expanding the Philly plant in the future. Just as soon as there’s more ethane available (hello Mariner East 2!)…
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    PennEnergy: Core of Marcellus Extends Under & North of Pittsburgh

    Green and Washington counties, south of Pittsburgh (Allegheny County), have long been considered the “core” of Marcellus Shale play in southwestern PA. The wells there get GREAT results–a mix of dry and wet gas (wet gas being natural gas liquids, like ethane, propane and butane). But one company, PennEnergy Resources, says the data shows that the same great Marcellus deposits are located underneath the great City of Pittsburgh itself, and in the towns north of the city (Allegheny County). And PennEnergy can prove it, with their own well results. Does that mean Pittsburgh itself may one day get drilled under?! Don’t hold your breath on drilling under Pittsburgh any time soon. However, according to Greg Muse, chief operating officer for PennEnergy, there’s plenty of gas to be drilled just north of the city–and the deposits are just as good as those south of the city. Muse also said PennEnergy is looking to either take the company public, merge with another company, or sell…
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    Marcellus/Utica Region Could Support 4 More Crackers, but Will It?

    In March of this year, the Team Pennsylvania Foundation released a report called “Prospects to Enhance Pennsylvania’s Opportunities in Petrochemical Manufacturing” (see PA Study Finds Marcellus/Utica Can Support 4 More Ethane Crackers). The report is derived from a comprehensive study conducted by powerhouse oil & gas consulting firm IHS Markit. According to the report, Pennsylvania can easily handle another two ethane cracker plants (aside from the already under construction Shell cracker), and Ohio and West Virginia can handle another two cracker plants between them, for a total regional capacity of another four ethane cracker plants. But realistically, will another four actually get built in our region? That was the topic addressed during the Northeast U.S. Petrochemical Construction conference held earlier this week in Pittsburgh. PA officials talked openly and honestly about the challenges in attracting more crackers–and about their mission, which is “the development of sites” to attract more crackers. It was an interesting, and candid, discussion with helpful information about what crackers look for in a potential site…
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    Shell’s Ethane Pipeline “Right on Track,” Construction Starts 2019

    Falcon Ethane Pipeline map – click for larger version

    Quite a bit of news came from the recent Northeast U.S. Petrochemical Construction conference held earlier this week in Pittsburgh. One session featured a Shell rep talking about Shell’s Falcon Ethane Pipeline, 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). Steady progress is being made in signing up landowners to allow the pipeline across their property. With so many anti groups opposing simple natural gas pipelines, like the CORNballs who oppose NEXUS (see CORNballs Strike Again, File Lawsuit to Stop NEXUS Pipeline), radicals trying to stop active construction on Rover (see Antis Ask Army Corps of Engrs to Yank Rover Pipeline Blanket Approval), and the DOPEs opposing Duke’s tiny pipeline into Cincinnati (see DOPEs Get Ready to Fight 13 Mile Pipeline Near Cincinnati), what Shell is reporting about how they are striking deals with landowners–landowners who actually support Shell and the pipeline–stands out as unique. What’s different about Shell’s ethane pipeline? For one thing, the Shell ethane pipeline is a private project, so it can’t use eminent domain. This is a high stakes gamble for Shell. If one landowner won’t deal and the pipeline doesn’t get built, how will Shell feed the cracker beast? So Shell deals with landowners (i.e. pays them big bucks) in order to get easements signed. Perhaps there’s a lesson here for other pipelines to follow? The Shell rep reported to conference attendees that the Falcon project is “right on track” and construction will begin in 2019, with completion set for 2020. That’s about two years ahead of when the cracker will go online…
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    Anti 2fer: Nutters Rally & March at 2 Marcellus Events in Pittsburgh

    It’s kind of humorous when a small group of insane anti-fossil fuelers participate in a march that they call “Stop the Madness.” Kind of meta, dontcha think? An anti reporter from the Pittsburgh Post-Gazette tagged along (who could tell the difference?) to “report” on a group of “about 100 protesters from 11 organizations” who rallied and marched from one Marcellus event to another being held in Pittsburgh on Tuesday. The protesters, dressed in clothes made from petrochemicals, wearing sneakers made from petrochemicals, and holding signs made from petrochemicals (after arriving at the “rally” and “march” in fossil fuel-powered transportation), rallied outside of the Northeast U.S. Petrochemical Construction conference–to protest petrochemicals, and then marched across town to the convention center to protest fracking outside of the DUG (Developing Unconventional Gas) East event. The group was a mish mash of the usual suspects–hard left nutters who pop up again and again to grab a headline bashing fossil fuels, before scarpering home using the fossil fuels they just bashed, going to houses and apartments heated and cooled using fossil fuels. Typical…
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    Primoris Lands Another Pipeline Contract for $53M in PA Marcellus

    Primoris Services Corporation, a pipeline building company based in Dallas, TX, has built a number of gathering pipelines in the Marcellus region. We’ve been covering some of the projects Primoris has been involved with since 2013 (see our Primoris stories here). Their announcements don’t name the customer. The amounts are typically in $10-$90 million range. Sometimes it’s easy to figure out who they are doing the work for. Sometimes not. This morning Primoris issued a press release to trumpet the fact they’ve just landed another project to build 27 miles of gathering pipelines in the PA Marcellus–for $53 million. This release is pretty thin. We don’t have good speculation on what part of PA (although in the recent past it’s been in the northeastern part of the state). We reached out to Primoris for more details and got this back: “I’m sorry, but we don’t share that information.” Here’s the piddly bit of information they do share, from the press release…
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