Pennsylvania

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    PA Marcellus Production Flies by 5 Trillion Cubic Feet in 2016

    Pennsylvania moved to the head of Marcellus pack when it comes to production reporting back in 2015. Until January 2015, drillers in PA were required to file production numbers with the Dept. of Environmental Protection (DEP) every six months, in October 2014 the Republican state legislature passed a bill that then-Gov. Tom Corbett signed into law moving reporting from every six months to every month (see 2 Bills on PA Gov’s Desk: Monthly Production #s, Lease Termination). The first monthly production report, for January 2015, was made available in April of 2015 (see PA’s First Monthly O&G Production Report Goes Live). Earlier this week the DEP posted production reporting numbers for December 2016, the latest monthly report to be released. When you aggregate all of the production numbers for 2016, you find that the Keystone State produced a new record high in 2016, even though new drilling slowed down for most of the year. PA produced 5.1 trillion cubic feet (Tcf) of natural gas last year–an astonishing number! That’s up from 4.6 Tcf in 2015. We thought it would be interesting to compare the monthly numbers from 2015 to 2016, now that we have all of the data. Here’s a series of charts we created, showing production for natural gas, condensate, and oil…
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    DRBC Secretly Deliberating on Rules to Lift Shale Drilling Ban

    The Delaware River Basin Commission (DRBC) held a regularly scheduled business meeting yesterday in Washington Crossing, PA. As predicted, a number of anti-fossil fuel zealots turned up to make noise about the PennEast Pipeline project–and about the prospect of the DRBC allowing shale drilling. As we disclosed yesterday, the zealots all read from the same document prepared by Her Eminence, THE Delaware Riverkeeper, Maya van Rossum (see THE Dela. Riverkeeper Issues Final Orders to Minions re DRBC Mtg). It’s tiresome reporting on the same, predictable behavior by children in adult bodies who never learned manners from their parents. So we’re not going to comment on the circus freak show that was the public comment period yesterday. However, there was an interesting development to report. Lt. Col. Michael Bliss of the U.S. Army Corps of Engineers (the Army Corps is one of the standing members of the DRBC Commission) read a statement about the history and possible future of DRBC regulations that may allow shale drilling in the basin. You read that right. According to Bliss, since 2010 the staff of the DRBC has actively been engaged in private (i.e. secret) discussions with various state agencies (we’re assuming the Pennsylvania Dept. of Environmental Protection) in an effort to, at some point, release regulations that will allow shale drilling in the Delaware River Basin. He said those discussions are ongoing and that before any kind of regs are released, there will be plenty of notice and public hearings…
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    DRBC has No Power to Stop Shale Drilling in Delaware River Basin

    You’ve heard the phrase, “The Emperor has no clothes.” A lawsuit against the Delaware River Basin Commission (DRBC) by a Wayne County, PA landowner over the DRBC’s ongoing moratorium of shale gas drilling, is exposing the DRBC as having “no clothes” when it comes to their authority over shale drilling (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). In fact, the DRBC has no authority to stop shale drilling, as they are now being forced to admit in response to the lawsuit. That fact has the DRBC, and radical environmentalists like THE Delaware Riverkeeper, petrified. MDN friend Tom Shepstone, author of the always-excellent Natural Gas Now website, writes about the DRBC’s lack of authority and the need for Pennsylvania to immediately defund the DRBC–until the agency stops their sham pretense of blocking shale drilling…
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    MSC Responds to Sec DCED’s Call for High Severance Tax

    Last week MDN published a letter to the editor (Philadelphia Inquirer) from Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED), supporting his boss’ desire for a new, very high Marcellus Shale severance tax (see PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax). As we said at the time, we prefer to think the letter was written by someone in the governor’s office and pushed in front of Davin for his signature. The column smacks of socialistic crap about how the severance tax is PA’s “fair share” of the Marcellus Shale boom. It’s nothing of the sort. The severance tax is a political payback to teachers’ unions for backing Wolf, which Davin surely knows. He and his excellent staff have been tireless promoters of the Shell ethane cracker–we have a favorable opinion of the DCED. MDN friend Dave Spigelmyer, president of the Marcellus Shale Coalition, noticed Davin’s letter too. So Dave wrote his own letter to the editor, to respond…
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    Report by Philly Antis Proves Mariner East 2 Pipeline is Safe

    A group of anti-fossil fuel nutters from the Philadelphia suburb of Middletown, PA (Delaware County) spent good money to buy themselves a report from an “independent” consultant that they say proves the Mariner East 2 Pipeline is too dangerous to build through their township. We don’t know how much the Middletown Coalition for Community Safety blew on the study, but we do know that Middletown Township is blowing $45,000 of taxpayer’s hard-earned money for a similar study (see Middletown PA Decides to Blow $45K (not $100K) on Mariner 2 Study). The Middletown Coalition was antsy, they didn’t want to wait for the town study to be completed, and they couldn’t risk a truly independent study finding the pipeline will be safe. So the Coalition moved ahead, no doubt using money from Big Green organizations to produce a report titled “Hazard Calculations for the Mariner East II Pipeline” (full copy below). The Coalition asked Quest Consultants, an Oklahoma-based firm, to evaluate what would happen IF a bunch of unlikely events were to happen. The report concludes: “IF the pipe were to rupture in Middletown Township, and IF the pipeline were operating at 1,500 psi while transporting ethane, and IF the release were oriented near to horizontal in the direction of the wind, and IF there are few obstructions to vapor cloud dispersion, and IF the weather conditions were 5 mph winds and stable atmosphere, the flammable vapor cloud could extend up to 1,800 feet from the pipeline.” The huge, gaping omission, the question the report does not address, is this: How likely is it that any or all of those things would actually happen? Our answer: near zero percent. In other words, the report just released by the Middletown Coalition proves that ME2 is safe!…
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    How to Do Business with the Shell Ethane Cracker Plant

    Some 400 business, education and government officials attended a sold-out forum last week in Titusville, PA to hear about doing business with the $6 billion Shell ethane cracker project in Beaver County, PA. The stakes are high. One PA official said, “This is the greatest generational economic development we’ve seen in Pennsylvania, maybe ever.” According to a Louisiana resident involved with crackers in his state, for ever job the Shell cracker creates there will be 8.3 jobs somewhere else–at other companies in the region–to support the plant. It is an incredible opportunity. The question, for businesses in the region, is: How do we get a piece of the cracker pie? We now have an answer–at least in part. If you want to supply goods and services for the construction of the plant, the key is in working with the main contractor building the plant–Bechtel. Below we have details on how to plug in to the Bechtel supply chain system, along with advice for job seekers who want to work at the cracker plant once it’s built…
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    PA Now Producing 20% of Nation’s Natural Gas

    A few fun facts for this festive Friday. In 2016, the state of Pennsylvania produced 5.26 trillion (with a “t”) cubic feet of natural gas–roughly 20% of all natural gas produced in the U.S. last year. Amazing! What’s even more amazing is that 10 years ago, prior to the Marcellus, PA produced 176 billion cubic feet of natgas–or just 3% of the natgas PA produced last year. Behold the miracle of the Marcellus Shale! Here’s some more details about PA’s natgas production history…
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    West Goshen’s Last Stand to Stop Mariner East 2 Pipeline

    There are a few last, desperate gasps at attempting to stop Sunoco Logistics Partners’ Mariner East 2 natural gas liquids (NGL) pipeline from being built. The pipeline is currently under construction (see Mariner East 2 Pipeline Constructions Begins Across PA). Even though trees are getting cut and pipeline is being laid, that doesn’t stop libs in places like West Goshen Township (Chester County, near Philadelphia) from attempting to deny Sunoco a zoning permit for a valve on the pipeline. Sunoco has politely, but firmly, told West Goshen the pipeline doesn’t need a permit from the town to install a valve because it’s a state-permitted project. In other words, go pound sand. Sunoco plans to move forward, at the appropriate time, with installation and wants assurances from West Goshen the town won’t send in a local cop to stop them. It could get messy…
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    PA DEP Cries the Blues: Getting $728M, “We Need More Money”

    The Pennsylvania Dept. of Environmental Protection (DEP) says 2,400 staffers and $728 million (proposed for 2017-2018) isn’t enough. More! Feed me! I need more!! Appearing at a budget hearing yesterday with state legislators, Acting Secretary of the DEP Pat McDonnell cried the blues. The DEP is authorized, according to last year’s budget, to have 2,700 employees, but McDonnell says the agency currently has 2,400. Not sure what the 300 difference is about. But, whatever. He also says the federal EPA is about to whack the money it hands out to state agencies, including the DEP, and that has McDonnell concerned…
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    Gas-Related Water Well Survey Coming in Clinton County, PA

    Letters are on their way to 283 Clinton County, PA property owners asking them to participate in a “free” (i.e. paid for by taxpayers) sampling of their well/drinking water supply. The U.S Geological Survey is conducting a study in the area in part to gauge the impact of nearby shale drilling on water supplies. What’s that? Is there ANY Marcellus drilling in Clinton County? As it turns out, there are a few wells–or at least there have been a handful of permits issued over the years, so we’re guessing some of those permits turned into drilled wells. Hey, we’re not complaining. Every time these types of studies are done they always come out the same way: shale drilling doesn’t impact water drinking water supplies. So have at it. We can always use yet one more study to prove what has already been proven…
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    Names Mentioned for 3rd FERC Post, Incl. PA’s Powelson

    Rob Powelson

    Yesterday MDN brought you the exciting news that President Trump plans to nominate Jones Day attorney Kevin McIntyre as chairman of the Federal Energy Regulatory Commission (FERC), and nominate Neil Chatterjee, senior energy adviser to Senate Majority Leader Mitch McConnell, as a Commission member (see Breaking: Kevin McIntyre, Neil Chatterjee are Trump Picks for FERC). However, there is a third open position on FERC. Lips are flapping around Washington and several names are being circulated as potential nominees. One of them REALLY excites us: Rob Powelson. Rob is a member of the Pennsylvania Public Utilities Commission (PUC). At one point, under then-Gov. Tom Corbett, Powelson was the PUC Chairman (see PA’s PUC Pro-Drilling Chairman Powelson Leads Mid-Atlantic Group). After Democrat Tom Wolf was elected as governor, he replaced Powelson with Gladys Brown as Chairwoman (see Anti-Drillers Cheer PA Gov Wolf’s New Appointment to Head PUC). However, Powelson remains on the PUC as a member. He’s one of the good guys–someone who supports shale energy. Rob’s stature and reputation went up again late last year when he elected as the new president of the National Association of Regulatory Utility Commissioners (NARUC). He’s serving a one-year term with NARUC. It’s not a full-time gig–he remains a commissioner with the PA PUC. Wouldn’t it be terrific if this Marcellus-loving regulator were the third new FERC commissioner appointed by Trump?…
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    Shell Cracker Makes Progress; Biggest Problem So Far? Parking

    Jim Sewell, the Environmental Manager for the Shell ethane cracker project being built in Beaver County, PA, recently gave an update on the project to members of the Ohio Valley Oil and Gas Association. Sewell spoke about the reason Shell chose the Monaca site. He also gave an update on progress at the site. The biggest problem they’re trying to solve right now? Parking for workers…
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    Gorsline Zoning Case Argued Before PA Supreme Court Justices

    Not long after the Pennsylvania legislature passed the Act 13 Marcellus Shale drilling law in 2012, signed into law by then-Gov. Tom Corbett, seven selfish towns sued, claiming they should have the right (via zoning laws) to determine just where an oil and gas well can be located within their borders. The challenge was brought by rabid anti-drillers and appealed all the way to the PA Supreme Court, where unfortunately the antis won (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). What the antis didn’t think about was the fact some towns may decide to exercise their newly-won rights–to allow wells, instead of prohibit them. Whoops. Guess they didn’t see that one coming. A town in Lycoming County decided to allow a shale well on property zoned residential/agricultural (i.e. farming country). Anti-drilling Big Green groups, including PennFuture, THE (arrogant) Delaware Riverkeeper, and the Peters Township gang (none of which are from mid-PA where the town is located) sued to deny the town the right to exercise its Act 13 authority to allow a shale well. A sham county judge granted a victory to the antis. But it was temporary. On appeal, the higher PA Commonwealth Court obliterated the faulty reasoning of the lower court and, significantly, redefined how courts should interpret the results of the Act 13 zoning lawsuit that allows local municipalities the right to restrict, or allow, shale drilling (see Major Victory for PA Landowners/Drillers in Lycoming County Case). The case, Brian Gorsline v. Board of Supervisors of Fairfield Township (Gorsline is an avowed anti-driller), was appealed to the PA Supreme Court and yesterday in Philadelphia the Supremes heard oral arguments. Can we determine anything from the tone of the questions?…
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    Anadarko Settles Criminal Case, Pays $53K for Killing Salamanders

    When was the last time you heard of someone indicted on criminal charges and instead of doing time in jail, they just paid money? While some crimes involve fines, they always involve jail, or probation, or some form confinement/punishment other than just paying money. At least that’s what we always thought. But if you’re part of the Gestapo, otherwise known as the Environmental Crimes Unit of the Pennsylvania Attorney General’s Office, apparently the rules don’t apply. People in the AG’s office can accuse you of a crime, then shake you down for money, and give that money away to anyone they want. That’s what just happened with Anadarko. As we recently reported (see Anadarko Indicted for Killing 165 Salamanders in Lycoming County), in February 2015 a storage tank at an Anadarko well pad leaked. Approximately 1,000 gallons of produced water leaked out of the tank and into a drainage ditch (i.e. “unnamed tributary”), ending up in a local creek where it killed 169 (or 165, depending on the source) salamanders. It was an accident. However, the Environmental Crimes Unit of the PA Attorney General’s office hauled Anadarko and their contractor into court, charging them with environmental crimes. In order to make it all go away quickly, Anadarko and the contractor settled, paying $53,078. The kicker is this: the bulk of the fine money doesn’t even go to the state of PA. Instead, $40,000 of the fine money goes to a private non-profit organization–the Northcentral Pennsylvania Conservancy. Nothing against the Conservancy and good work they do, but this is wrong…
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    Positive Signs that Shale Drilling is Coming Back in Central PA

    As MDN has noted over the past several months, the signs have been positive that Marcellus/Utica drilling is picking up once again. But that doesn’t mean it’s picking up in every location. Or does it? One of the hotbeds of drilling activity “back in the day” was in several northeastern/central Pennsylvania counties, including Tioga, Bradford, Lycoming and Sullivan. But then the bottom fell out of the industry (with super low prices) and drilling all but dried up in those counties. The good news is that there are signs of life, once again, in the central counties of PA. Between Nov. 1 and Mar. 6, 30 drilling permits were issued in Tioga County, 12 permits in Lycoming County, and (somewhat surprising), 8 permits issued in Sullivan County. Shale is coming back!…
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    PA State Senator Introduces Bill to Regulate Gathering Pipelines

    PA Senator Lisa Baker

    We’re not quite sure what to think about this one. A Republican PA State Senator, Lisa Baker, on Monday introduced a bill in the PA Senate (SB 488, see a copy below) to regulate low-pressure natural gas gathering pipelines. Currently those lines, over 3,600 miles of them, are not regulated by any state or federal agency. Baker’s bill would put them under the oversight of the PA Public Utility Commission. Hey, we’re not against regulation in general. It’s an important part of the puzzle that makes energy possible. We are, however, against unnecessary and onerous regulation. We are against barriers that would slow, to a crawl, the installation of new gathering lines–what are by all accounts very safe pipelines. When was the last time you heard about a local gathering line that sprung a gas leak, blew up, etc.? Yeah, us too. Never. So the real question here is: Is regulating these lines even necessary? We suspect not, but we’ll keep an open mind while this plays out…
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