Pennsylvania

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    New 3.5 Mile Pipeline Project to Drill Under the Potomac River

    Click for larger version

    Columbia Pipeline, now owned by TransCanada, recently (in March) filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in West Virginia with the Columbia Gas Pipeline in Pennsylvania. The purpose of the Eastern Panhandle Expansion project is to deliver natural gas via local distribution channels to a new industrial facility in Berkeley County, WV (scheduled to open in Fall 2017), and to provide gas to other local businesses and residents in the Tri-State area. Most of the pipeline crosses through a tiny sliver of Washington County, Maryland. The main issue with the project is that the pipeline will be drilled underneath the Potomac River, which serves as the border between WV and MD. That has antis in an uproar. The good news is that FERC has agreed to prepare an environmental assessment (EA) for the project. That is, this is now a real project with a high degree of likelihood it will get built…
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    Lawyer to PA Drillers: No Royalties? Time to Terminate the Lease

    For the past couple of years MDN has covered the issue of low and no royalties for landowners in Pennsylvania and other states because of the low commodity price for natural gas–and because drillers are deducting post-production expenses. The problem, from the landowner’s perspective, is that gas is still getting pumped–and they aren’t getting anything in royalties. Who would sign up for that?! The problem, from the driller’s perspective, is that they’ve spent big bucks to drill the well and even if they have to sell the gas at a loss, at least they’re getting some revenue through the door–hoping to hang on until prices go higher again. It is a conundrum. Last month the Pennsylvania Chapter of the National Association of Royalty Owners (NARO) held their annual meeting and convention in State College, PA. A number of interesting bits of information came out of that meeting. One interesting tidbit: A Houston lawyer told attendees that he is now using the strategy of telling drillers if they keep sending royalty statements with no checks (i.e. statements showing the driller is not making a profit)–they have 30 days to terminate their lease with those landowners. Some leases (not all) state that if a well quits producing profitable quantities of gas, the lease is officially ended. While in some respects the lawyer’s innovative interpretation of o&g contracts may be an empty threat, the strategy does appear to be getting results. Another tidbit: There is a concern that drillers may try to deduct losses today from profits in the future–from a landowner’s royalty check. What can landowners do to guard against it?…
    Read More “Lawyer to PA Drillers: No Royalties? Time to Terminate the Lease”

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    PA Enviro Justice Listening Tour Continues to Draw Almost No One

    Last December the Pennsylvania Dept. of Environmental Protection (DEP) said it would go on a “listening tour” in early 2017, to focus on so-called environmental justice (see PA DEP to Conduct ‘Listening Tour’ for ‘Environmental Justice’). The DEP finally set up a schedule for its listening tour, which began in March in Greene County (see PA DEP Conducting “Listening Tour” for “Environmental Justice”). Our take: “environmental justice” means asking poor people if they’ve been abused by the oil and gas industry in any way–and if they have a beef, the DEP will “do” something about it. The first session in the tour was interesting for several reasons. For one, just a handful of people turned out–a maximum of 30 in the crowd. For another, the po’ folk didn’t bother coming. It seems only radical activists bothered to turn up, claiming to represent the abused, repeating the same tired, old lies they always repeat. Another stop along the tour was held last week in Williamsport, PA. The pattern repeats. If anything, there were fewer people in the crowd–about 20 according to the local newspaper. Next to nobody turns up for these things. Why is the DEP wasting its time, and PA taxpayers’ money?…
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    Dela. Riverkeeper Protects Wm. Penn Foundation’s Tax Exemption

    MDN friend Tom Shepstone has long pointed out the incestuous connection between THE Delaware Riverkeeper and the William Penn Foundation. William Penn is a nonprofit that, according to its nonprofit charter, cannot use its considerable wealth to engage in political activities. So like an organized crime ring, William Penn uses Riverkeeper as the front organization to do its dirty work–investing millions in the Riverkeeper to carry out its (William Penn’s) radical environmental agenda. All at an arm’s length–to protect William Penn’s tax exempt status (hello IRS and PA Attorney General’s office, are you reading this?). It is a thinly-veiled shell game of money changing hands. The William Penn/Riverkeeper shell game is exposed in a recent article in the Washington Examiner
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    Mariner East 1 Sprang a Small NGL Leak Near Philly, on Apr 1

    Mariner East Pipeline Project map – click for larger version

    The Mariner East 1 pipeline sprung a small leak and spilled 20 barrels (~840 gallons) of ethane and propane in Berks County, near Philadelphia, on April 1. Sunoco Logistics Partners, builder and maintainer of the pipeline, shut it down and fixed it over the next several days. The entire episode, which happened 20 days ago, is only now coming to light. Sunoco is being criticized by antis for not taking out a major advertising campaign to announce the leak. Sunoco says they alerted the National Response Center (NRC), the proper federal authority (a program of the U.S. Coast Guard). Apparently it is the job of the NRC to alert the public. Although this was a small leak which was quickly contained and with no long-term effects, Sunoco seems to have missed an important life lesson: He who gets there with the bad news first, wins. Sunoco LP should have (in our opinion) been more proactive in publicly announcing the leak and the steps taken to contain and fix it–and to reassure folks that measures will be taken to prevent any such leaks in the future. There would have been a day or two of hit pieces by “mainstream” media, and then the story would have disappeared. Now, the story will linger and be used against the company should any more minor spills happen…
    Read More “Mariner East 1 Sprang a Small NGL Leak Near Philly, on Apr 1”

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    Penn Twp Reverses Course, Leases Town Land for Marcellus Drilling

    In May 2016, MDN told you that the Penn Township (in Westmoreland County, PA) zoning board voted to refuse to grant a permit to Apex Energy to build a DEP-permitted well pad in the town (see Penn Twp Commissioners Block Apex Shale Well Request in 3-2 Vote). In June 2016, Penn began considering a far more restrictive ordinance than it currently has–to limit drilling in the township (see Penn Township Considering More Restrictions on Drilling). That didn’t sit well with Huntley & Huntley, a driller that owns leases for some 23% of the land in the township. In August, the debate continued at a public hearing, with pro- and anti-drillers out in force to discuss the potential Marcellus-killing ordinance that had been drafted (see Penn Twp Hearing Discusses Marcellus-Killing Ordinance). So at last check, things were not looking too favorable in Penn Township. Then yesterday, Penn Township commissioners voted to approve leasing 29 acres of town land to Huntley & Huntley. Somewhere along the way there’s been a 180 degree turnaround by Penn on the issue of drilling. How much is H&H paying the town in bonus and royalties? We have the details…
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    PA Bill Would Restore Dormant Mineral Rights to Surface Owners

    The issue of returning mineral rights to surface owners has long been an issue we’ve tracked on MDN–for Ohio. In Ohio, the issue revolves around legislation called the Dormant Minerals Act (DMA). In September 2016, the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). The DMA in its various versions provides for mineral rights that had previously been separated from surface rights to transfer back to the surface owner under certain conditions. That same kind of legislation may be coming to Pennsylvania, under a bill about to be introduced by PA Rep. Garth Everett. Does that name sound familiar? It should. Earlier this year Everett introduced “minimum royalty” legislation that would guarantee PA landowners would get minimum royalty payments of 12.5%–regardless of any kind of post-production expenses (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Everett, a champion for landowners, is now back with a bill that would transfer back mineral rights to the surface owner following 20 years of dormancy…
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    PA Launch 1st of 29 CNG Stations for Public Transit Buses

    Yesterday Pennsylvania officials converged on Cambria County to unveil what is the first of 29 total CNG (compressed natural gas) fueling facilities that are being built in a public/private partnership for PA’s public bus transit fleet. Beginning this year and stretching through 2021, Trillium CNG will build and operate a total of 29 CNG fueling stations around the state. PA is paying Trillium, which is a subsidiary of Loves Travel Stops (see Love’s Travel Stops Buys Trillium CNG, Expands CNG Network), $84.5 million to build the stations. In addition to fueling public vehicles, some of the locations will be open to the public. Once the project is completed in 2021, those 29 CNG fueling stations will provide natgas for more than 1,600 CNG buses at transit agencies across the state–an important new market for homegrown, PA Marcellus Shale gas…
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    PA Lib Dem Introducing Bill to “Fix” Strippers Once and for All

    Pam Snyder

    The kerfuffle over strippers in PA continues–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see PA Court Says Snyder Bros Wells are Strippers, No Impact Fees Due). That sent the state Public Utility Commission (PUC) into a tizzy. The PUC, under liberal Democrat chairwoman Gladys Brown, is painting nightmare scenarios where impact fee revenue will be in jeopardy (see PA PUC Wants Act 13 Language Changed to Avoid Stripper Abuse). Brown wants the PA legislature to pass a new law amending the Act 13 law to “clear up” the language to say if a well produces more than 90 Mcf/day in ANY month, it qualifies to pay the impact fee. Brown has found a willing accomplice in PA State Rep. Pam Snyder, liberal Democrat representing Greene, Fayette, and Washington Counties. Snyder issued a press release to say she’s about to introduce a bill that Brown wants…
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    Elizabeth Twp Hearing re Alternate Location for Gas Power Plant

    In January 2016, Invenergy announced their intention to build a natgas-powered electric plant in Elizabeth Township, in Allegheny County (see Invenergy Eyes SWPA for Second Marcellus-Powered Electric Plant). The proposed Elizabeth plant, modestly sized at 550 megawatts, would be built on a brownfield site near Pittsburgh. Even though the site is a former landfill where fly ash was dumped, making it unusable for just about any other purpose, a group of local residents would prefer to keep the site a contaminated dump rather than convert it to a beneficial use like generating electricity (see Invenergy Gets Pushback on Proposed Natgas Power Plant in SWPA). The local antis enlisted the support of Elizabeth Township’s zoning board, which rejected the plan in June 2016 (see Elizabeth Twp Rejects Clean Invenergy Power Plant at Dump Site). So Invenergy sued the town in October (see Invenergy Sues Elizabeth Twp to Allow NatGas-Fired Electric Plant). Rather than drag out the lawsuit, causing Elizabeth taxpayers big money to defend a defenseless decision, Invenergy offered an olive branch–locating the plant at a new, more rural location about 10 miles away (see Invenergy Proposes Deal to Elizabeth Twp to Move Gas Power Plant). Last night the Elizabeth Planning Commission held a 2-hour hearing to take comments from supporters, and the ninny nannies who still oppose it because it burns an evil, nasty, vile fossil fuel…
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    Penn State Researchers Claim Too Many Pipelines Threaten Forests

    Researchers from the Department of Ecosystem Science and Management at Penn State have just published a new study/paper in the Journal of Environmental Management titled, “Linear infrastructure drives habitat conversion and forest fragmentation associated with Marcellus shale gas development in a forested landscape” (abstract below). Their thesis: “Fragmentation of ecologically important core forests within the northern Appalachians — driven by pipeline and access road construction — is the major threat posed by shale-gas development, according to researchers, who recommend a change in infrastructure-siting policies to head off loss of this critical habitat.” This isn’t the first time we’ve heard about the hazards of so-called forest fragmentation. Back in 2013 the U.S. Geological Survey published a meme on it too (see USGS Study: Marcellus Drilling Fragmenting Forests in PA). The Penn State researchers maintain clearing pathways for pipelines, and keeping them cleared of trees, is damaging the habitat of some species. The study mentions a lot of other studies, but nowhere (that we could find) does it identify a single, specific species that has supposedly been harmed by such “fragmentation” in forests. The aim, the upshot of this research, seems to be an appeal to regulators to clamp down on the siting of pipelines on PRIVATE (not public) land. It aims to be something the DEP can clutch in its hand and say, “Sorry, we can’t authorize that pipeline ’cause it will cause a break in the forest canopy and certain canopy-dwelling species will be affected.” Right. Excuse us Ms. & Mr. researchers: What about the species that BENEFIT from fragmentation? We didn’t read anything about that in the study. The telltale sign that this is bought-and-paid for propaganda and not real research comes at the end, when you find out it was funded, in part, by the virulently anti-drilling Heinz Foundation…
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    PennFuture Radicals Want to Deny Rural Folks Access to NatGas

    Yesterday MDN reported that NARUC (National Association of Regulatory Utility Commissioners), under the watch care of Pennsylvania Public Utility Commission (PUC) member Rob Powelson, currently the president of NARUC, has launched an effort that tries to help rural (and poor) folks without access to cheap, clean-burning natural gas, get access (see NARUC Creates Group to Spread NatGas Use Far and Wide). This is an honest effort to help an overlooked portion of our population enjoy benefits enjoyed by those who live in urban areas. But the radicals at PennFuture want to block such access–because natural gas is a filthy, vile fossil fuel. Better to keep those idiot hicks in the sticks poor and paying high prices for fuel oil and propane, rather than let them get access to cheap natural gas. That’s the conceited attitude displayed by PennFuture…
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    Japanese Now Own 2/3 of Marcellus-Powered Electric Plant in SEPA

    Two weeks ago MDN brought you the news that Japanese company Sojitz Corporation had purchased a one-third (1/3) interest in the 488-megawatt Marcellus gas-fired electric plant being built in Birdsboro, near Philadelphia (see Japanese Co Buys 1/3 of Marcellus-Powered Electric Plant in SEPA). EmberClear plans to begin construction on the Birdsboro Power project in 2018, with an in-service date of June 2019. Word has just come that a second Japanese company, Tokyo Gas (a regional utility company in Japan) has purchased a one-third (1/3) interest in the Birdsboro project–meaning the Japanese will own 2/3 of the plant. However, investment firm Ares EIF will retain the final one-third ownership and provide “day-to-day management” of the facility. While the exact amount of the transaction was not disclosed, it’s said to be “tens of millions of dollars.” What’s up with Japan buying into our powergen projects? In the case of Tokyo Gas it’s crystal clear–they will participate in every aspect of building this project, so they can take their newfound knowledge back home and apply it there. Or depending on your point of view, you might say they want to steal our technology and trade secrets…
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    4 Marcellus Wells Approved in S Buffalo Twp – Concerns Discussed

    In 2012 Pennsylvania under then Gov. Tom Corbett passed the Act 13 law, a major revision to PA’s oil and gas laws. Part of Act 13 would have established a uniform set of zoning ordinances, replacing and superseding any such local ordinances. But then seven selfish towns got together and sued to the state to retain the right of imposing their own zoning ordinances for some oil and gas development. The lawsuit was a years-long process with the case ending up at the PA Supreme Court–where the seven selfish towns won the right to impose their own ordinances on o&g development–up to a point (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). Nowadays, PA towns have their own ordinances to deal with issues like truck traffic, noise, lights, setbacks and more. Fine. It is what it is and instead of a consistent set of rules, drillers are faced with a crazy quilt of differing rules across different townships. Snyder Brothers, which has already drilled several Marcellus Shale wells in South Buffalo Township (Armstrong County), wants to drill four more Marcellus wells in the town–next door to their previously drilled wells. So they applied for “conditional use” permits from the town to drill them. Town supervisors granted the permits, but not before conducting a public hearing where residents sounded off about the project. What is interesting about the hearing is that none of the residents opposed the new wells–but they did have some tough questions for Snyder Bros. about lights and noise and water wells. Good questions. Honest questions. Tough questions. And Snyder Bros. answered those questions and made promises/assurances to local residents. This is how a free, open and democratic society works. This is how adults behave. Give and take, back and forth, in a spirit of “let’s do it right the first time so we don’t have problems.” Hats off to the residents and supervisors of South Buffalo Twp, and to Snyder Brothers, for showing the rest of PA (looking at you Peters Twp) how it’s done…
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    The Key to Unlocking PA’s NatGas Reserves: Pipelines

    Once the slew of approved and under-construction pipeline projects in the Marcellus/Utica region are done, the M-U region will likely go from providing 20-25% of the nation’s total natural gas production to providing one-third of the country’s total natgas production. This astonishing story of production and pipelines in the northeast is really, at its core, a story about Pennsylvania. According to a recent Reuters article, at least five pipelines capable of transporting a combined 7 billion cubic feet per day (Bcf/d) of natgas from the PA Marcellus/Utica are scheduled to open in 2017, with five more transporting another 5 Bcf/d due for completion in 2018. Pipelines are the key to unlocking Pennsylvania’s vast natgas reserves…
    Read More “The Key to Unlocking PA’s NatGas Reserves: Pipelines”

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    PA Teen Sues Trump Over Mythical Man-Made Global Warming

    Eighteen-year-old Sophie Kivlehan has been brainwashed by her parents and grandparents, big believers in the myth of man-made global warming, since she was a tot. Her grandpa, Jim Hansen (astro-physicist at Columbia University) is a smart guy–“perhaps one of the worlds’ most well-known climate scientists.” Grandpa Jim did a good job of making sure young Sophie learned her lessons well–about the evilness of fossil fuels and how Mom Earth is ready to toast–any minute now, thanks to burning fossil fuels. Of course such beliefs must, of necessity, disregard hard scientific facts/data that show temps around Mom Earth aren’t going up and haven’t been for the past 20 years. It’s all about what “might” happen and what’s coming “just around the corner.” All based on cockamamie computer models. The same models can’t predict temperatures and the weather accurately for next week–but boy can they predict that the earth is about to fry. Any year now. But back to you Sophie. She’s decided four months in office for President Trump is long enough. He’s not doing his job to combat mythical global warming, so she’s suing him–hoping the courts will make him do it. Ah, Sophie darlin’, when was the last time anyone made Donald Trump do anything? Of course, Sophie’s lawsuit (really backed by Big Green) is nothing more than a sick publicity stunt…
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