Pennsylvania

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    Editorial: No University of Pittsburgh, Period

    We have a concern about the kind of education being offered by the very high-priced University of Pittsburgh. What are the professors actually teaching to those young skulls full of mush? Judging by the kinds of editorials coming from the student-run Pitt News newspaper, we’d have a big concern about the education (or rather, miseducation) coming from Pitt, especially if we were parents of students at Pitt. In today’s editorial, titled “No Mariner East II pipeline, period.”, the writers actually, fantastically say this: “But as our levels of dependency on oil combined with estimates of what’s left in the earth come to a head in the next few decades, investing in infrastructure to increase our fossil fuel consumption is both unwise and irresponsible.” Are these young people just really stupid? Or have they been miseducated? Do they not know that the same flawed, “We’re going to run out of fossil fuels any decade now” thinking has been around for the past 40+ years? And that we have MORE supplies of fossil fuels today than we thought possible just a decade ago? The entire editorial is a rail against Mariner East 2, and against all pipelines, because they flow fossil fuels. This is nuttery. And frankly, it’s not acceptable from so-called “educated” students at a reputable university. We think an investigation should be launched into how this sort of obviously flawed thinking can happen at a place like Pitt…
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    Finally! PA DEP Issues Final Permits for Mariner East 2 Pipeline

    Mariner East 2 Pipeline – click for larger version

    Game, set and match. Finally, after five circuses, er, a, public hearings, and 29,000 form letter comments, the Pennsylvania Dept. of Environmental Protection (DEP) has issued the final Chp. 105 (Water Obstruction and Encroachment) and Chp. 102 (Erosion and Sediment Control) permits for the Mariner East 2 pipeline project. PA has cleared the project to begin construction–there are no more permits required from PA. However, before the bulldozers start, there is one remaining hurdle: permission from the U.S. Army Corps of Engineers (which under President Trump, is a foregone conclusion). Mariner East 2, as a reminder, is a $2.5 billion, 306-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. It will flow mostly ethane, but also propane and butane. There have been numerous legal battles and roadblocks thrown up by some of the townships along the route–but that’s now behind us. Oh, there’s still a few troublemakers (see Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?), but their troublemaking will go nowhere. This has been a long time coming, and a cause to celebrate…
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    PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP

    PennEast Pipeline proposed route – click for larger version

    PennEast Pipeline is reporting a major milestone in getting their project approved: the Pennsylvania Dept. of Environmental Protection last Friday awarded the pipeline a 401 Federal Clean Water Act “Water Quality Certification.” PennEast is a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. Although the PA DEP’s water certificate is certainly good news, it comes not long after a continuing cloud over the project–yet another delay by the Federal Energy Regulatory Commission (see FERC Delays PennEast Pipeline Final Review – Again). FERC was supposed to issue a final environmental assessment for PennEast last August. Then it got changed to December. Then it got changed to this month, February. There will almost certainly be a fourth delay as there are now not enough FERC Commissioners to vote on the assessment (since Norman Bay quit in a huff, see FERC Commissioner Resigns Threatening Major M-U Pipeline Projects). However, for now, let’s revel in the current good news for the project…
    Read More “PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP”

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    PA Lawmakers Push Back Against DEP’s Draft Methane Regs

    In December 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 is likely to disappear under President Trump, PA Gov. Wolf still intends to push forward with these regulations. After some final tweaks, the DEP released draft versions of the new permits (i.e. regulations) last week, opening them up for public comment over the next 45 days. However, chairman of the Pennsylvania House State Government Committee, Rep. Daryl Metcalfe, sent a letter to the DEP (full copy below) to let the DEP know they have overstepped their bounds in issuing the draft permits. Metcalfe accuses the DEP of “lack of transparency, accountability and judicious use of regulatory authority.” In other words, cease and desist. Another PA legislator, Sen. Guy Reschenthaler, introduced a bill in January that would prohibit PA from adopting regulations that are stricter than federal standards. It seems the DEP has a fight on its hands–from the PA legislature…
    Read More “PA Lawmakers Push Back Against DEP’s Draft Methane Regs”

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    10% of PA Farms Received Avg $154K in Lease/Royalties in 2014

    Some farms not only produce products like milk, meat, eggs and/or crops–some farms produce energy. Would it surprise you to learn that in 2014 (the most recent year with stats available), energy companies paid farmers a staggering $2.9 billion for the energy extracted from private farms? The U.S. Dept. of Agriculture posted a brief blurb from their Amber Waves magazine yesterday, recounting stats from a report released last November. The report, “Trends in U.S. Agriculture’s Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass” (full copy below) points out it’s not just oil and gas extraction that farmers receive income from. Some farmers lease their land for solar and wind generation. Some biomass. However, it was one particular chart and stat that caught our attention: About 9.6% of Pennsylvania farms received energy income in 2014. The average amount received, per farm? $157,000! Almost all of that revenue came from the Marcellus Shale…
    Read More “10% of PA Farms Received Avg $154K in Lease/Royalties in 2014”

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    PA Landowner Wins Case Against Chesapeake re Royalty Deductions

    Paul Sidorek, an accountant representing some 60 northeastern Pennsylvania landowners who receive royalty income from drilling, is also a landowner himself. In 2009 Sidorek leased 145 acres, a lease that was eventually sold to Chesapeake Energy. Because of the troubles encountered by others, Sidorek wrote into his lease a 20% royalty and made sure the lease explicitly stated that no expenses could be deducted from the sale of the gas produced on his property. That is, NO post-production expenses could be deducted. And yet, Chesapeake disregarded the lease and deducted as much as 30 percent from his royalties, attributing it to “gathering” and “third party” expenses, an amount that adds up to some $40,000 a year (see Chesapeake Short-Changes PA Landowner on Royalty Checks). Sidorek fought Chesapeake in court, and ended up in arbitration. The arbitrator has just ruled–in Sidorek’s favor. The good news is that a PA landowner has gotten some justice against Chesapeake’s sleazy practice. The bad news is that it’s not a precedent and can’t be used in other court cases…
    Read More “PA Landowner Wins Case Against Chesapeake re Royalty Deductions”

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    Josh Fox & Antis Plan to Disrupt DRBC Meeting This Wednesday

    There may, finally, be movement by the recalcitrant Delaware River Basin Commission (DRBC) to finally, after eight years, begin to move in the direction of guidelines to allow shale drilling in two northeastern PA counties: Wayne and Pike. Why is there movement now? Because last year landowners launched a lawsuit against the DRBC, a lawsuit the DRBC now senses they may lose (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). So one of the chief antis, charlatan Josh Fox (of Gasland infamy) has put out the call to rally the radical troops to show up at this week’s DRBC meeting, with plans to disrupt the meeting. Bullying with fear and intimidation is the weapon of choice for this group…
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    Williams Cuts Deal to Increase Ownership in NEPA Pipeline System

    In the midstream (i.e. pipeline) world, it seems like nobody owns 100% of anything. Big midstream companies like Williams and Kinder Morgan (and others) are composed of subsidiaries and (sometimes) MLPs–master limited partnerships. And beyond the companies within companies (like a Russian nesting doll), often pieces of pipeline systems are co-owned with other companies, even competitors! In 2014 Williams bought out Access Midstream, the renamed and former division of Chesapeake Energy called Chesapeake Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). When Williams bought Access, one of the regional pipeline gathering systems it got as part of that deal is what Williams calls the Bradford Supply Hub (named after Bradford County, PA). Yesterday Williams announced a deal with a part-owner for portions of the Bradford Supply Hub, Western Gas, to buy out Western’s portion. Through an elaborate deal, Williams gets Western’s 33.75% ownership stake in what is called the Rome and Liberty natural gas gathering systems (part of the Bradford Supply Hub), along with a check for $155 million. In return, Williams is transferring to Western its 50% ownership stake in the Delaware Basin JV Gathering pipeline system, located along the New Mexico/Texas border…
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    PA Case Highlights Risk in Using Non-Lawyer to Negotiate Lease

    In August 2013 an extensive investigative article about a then-director for the Pennsylvania Game Commission, William A. Capouillez, appeared in the Philadelphia Inquirer (see PA Director of Game Commission Double-Dipping with Gas Leases?). The article spotlighted a potential conflict of interest between Capouillez’s day job and his moonlighting side job as an agent for property owners who lease their land for oil and gas development. The issue? He was signing private deals with the same companies that often work with his state agency. The State Ethics Commission did a lengthy investigation and three years later, the Commission levied a $75,000 fine, which Capouillez agreed to pay (see Former PA Game Commissioner Fined $75K for Lease Moonlighting). Although he paid the fine, Capouillez remained defiant and said the fine is a tiny fraction of the original fine sought–an indication of his vindication. There is new litigation involving Capouillez. One of the leases he negotiated was on behalf of the Laurel Hill Game and Forestry Club with Range Resources. The way Capouillez constructed his leases was that he would get a cut, a percentage, of any lease signing bonus and ongoing royalty payments, in return for the leases he brokered. Range never drilled on Laurel Hill’s property, but they did start to push dirt around a few hours before the lease expired as a way of holding the acreage (some would call their action a less-than-honorable practice). Laurel Hill sued Range and the lawsuit was later settled by drafting up a new lease with new terms. The new lease/terms were not brokered by Capouillez and he was cut out of the deal–so Capouillez sued both Laurel Hill and Range. The moral of the story, according to lawyers writing about the case, is to never use non-lawyers to represent you in lease negotiations…
    Read More “PA Case Highlights Risk in Using Non-Lawyer to Negotiate Lease”

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    Drexel Study Claims Fugitive Methane Increasing in the Marcellus

    For those of us in a certain generation, you will recognize this: Fred, Daphne, Shaggy, Velma…and of course, Scooby-Doo! If you were raised watching cartoons on Saturday morning, and you watched Scooby-Doo, do you remember the name of the van they traveled around in? That’s right, the Mystery Machine! An image of the Mystery Machine is what floated through our brain as we read about the latest venture in researching air quality in Pennsylvania near drilling sites. Researchers from Drexel University (in Philadelphia) set out across Marcellus territory in “Drexel’s Mobile Laboratory, a Ford cargo van equipped with all the equipment necessary for measuring concentrations of chemicals and particles in the air at 1-10 second intervals while driving.” The Mystery Machine! And what, pray tell, did our intrepid Marcellus sleuths find be-bopping around the countryside? In the recently published study, “Analysis of local-scale background concentrations of methane and other gas-phase species in the Marcellus Shale” (full copy below), researchers say they found that even though the number of Marcellus wells being drilled has slowed quite a bit over the past few years, the amount of fugitive methane in the air has increased. And the increase can’t be explained by a general global increase in fugitive methane. The increase in fugitive methane in the Marcellus is due, our methane sleuths say, to the “increased production of natural gas from the region which has increased significantly over the 2012 to 2015 period.” The researchers conclude that “because everybody knows how evil and nasty fugitive methane is for global warming” (our words), this study is yet more evidence that Marcellus shale drilling (and pipelines, etc.) leak so much methane as to make any benefits we get from extracting and burning methane, over say coal, muted–even lost. Because we can’t put a cork in it, by extracting and using methane we’re making poor old Mom Earth even sicker. Which is, of course, total bunkum…
    Read More “Drexel Study Claims Fugitive Methane Increasing in the Marcellus”

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    County Reaction to PA Gov. Wolf’s 6.5% Severance Tax: “Insane”

    Yesterday MDN brought you the disappointing news that Pennsylvania Gov. Tom Wolf, America’s most liberal governor, has once again introduced a 6.5% severance tax plan as part of his 2017 budget (see PA Gov Wolf’s New Budget Calls for 6.5% Severance Tax (Again)). As part of that story we brought you some initial reaction to the proposal. We have some more reaction. Needless to say, PA counties are not impressed with the plan. Although Wolf claims counties will still see their cut of the current impact tax, counties see through the ruse. A county commissioner from Bradford, Doug McLinko, has this blunt assessment of Wolf and his severance tax plan: “I think the governor is insane.” That about sums it up. Hey, we didn’t say it! Doug did. Here’s what else Doug had to say about Wolf’s budget plan, along with some Republican legislators from the Philadelphia area…
    Read More “County Reaction to PA Gov. Wolf’s 6.5% Severance Tax: “Insane””

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    PA Gov Wolf’s New Budget Calls for 6.5% Severance Tax (Again)

    Yesterday Pennsylvania Gov. Tom Wolf released his 2017 budget proposal. Twice before, Wolf has attempted to levy a severance tax Marcellus drilling in the state–in addition to the existing impact tax. A severance tax would cause drilling in the state to stop, by giving PA one of the highest severance tax rates in the nation. (Yes, drillers do have other options and will go to other shale plays!) However, in this new budget, Wolf is once again attempting to impose a severance tax–this time 6.5% (same as last year)–as a payback to the teachers’ unions that helped elect him. Wolf’s plan this year is to transfer away nearly $300 million from drillers and landowners, via a high severance tax, and give it to “education.” As soon as Wolf was done with his divisive budget address yesterday, top Republicans declared the severance tax plan dead–about as dead as Wolf’s fledgling reelection effort…
    Read More “PA Gov Wolf’s New Budget Calls for 6.5% Severance Tax (Again)”

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    Anti-Pipeliners Meet with PA DEP Sec. McDonnell, Get No Satisfaction

    Acting Pennsylvania Dept. of Environmental Protection (DEP) Secretary Patrick McDonnell held a “hastily arranged” meeting on Monday with several antis who are opposed to Sunoco Logistics Partners’ Mariner East 2 pipeline project. You may recall these same antis predicted the DEP would grant the final permits needed for Mariner East 2 last Friday (see Mariner East 2 Permits May Come Today – Antis Foment Civil Unrest). But as they so often are, they were wrong yet again. The permits did not appear on the appointed day. However, the permits are expected soon, and no doubt McDonnell held the meeting to help prepare them for that eventuality. (Snowflake antis have delicate sensibilities, dontcha know.) The meeting went on for some 70 minutes. The antis tried to get the DEP to further delay the project with another useless public comment period. The DEP has already received over 29,000 public comments–what’s left to be said? At the end of the meeting, the antis got (our words, their sentiment)–“no satisfaction”…
    Read More “Anti-Pipeliners Meet with PA DEP Sec. McDonnell, Get No Satisfaction”

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    Antis Plan a Weekend Campout to Protest Atlantic Sunrise Pipeline

    Anti-fossil fuel protesters (some of them paid) will go on a camp-out in Amish country (Lancaster County, PA) beginning this Friday to protest the imminent start of construction for the Williams Atlantic Sunrise Pipeline project. The same group built themselves a magic tree house along the planned route of the pipeline (see PA Antis Build 2nd Magic Tree House to Stop Atlantic Sunrise Pipe). Then the bottom dropped out of their world. Last Friday the Federal Energy Regulatory Commission (FERC) issued a final authorization to begin construction (see Atlantic Sunrise Pipeline Gets Final Approval by FERC). Williams still needs permits from the PA Department of Environmental Protection (DEP) and the U.S. Army Corps of Engineers. However, permits from PA & the Army Corps is perfunctory. The only thing antis can do now is attempt to gin up hundreds (or thousands) of people to attempt an illegal blockade to prevent construction of the pipeline. You know, a “peaceful” act of civil disobedience, like that in North Dakota (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). So beginning Friday the antis will grab their sleeping bags and head to the magic tree house…
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    PA DEP Seeks Public Comment on Regs for Methane, Compressor Stns

    In December 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 (to be published “soon”) were originally prompted by bullying from the federal Environmental Protection Agency. Even though EPA pressure is likely to disappear under President Trump, PA Gov. Wolf still intends to push forward with these 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 has just released draft versions of the new permits (i.e. regulations), opening them up for public comment over the next 45 days. At the end of that time, we expect it will take a month or so and then the DEP will publish the revised permits and they will become (in essence) the law. Below we have the DEP’s announcement in releasing the draft permits, along with copies of the draft permits and associated documentation…
    Read More “PA DEP Seeks Public Comment on Regs for Methane, Compressor Stns”

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    Pittsburgh-based MAX Environmental Purchased by Investment Firm

    In 2014 MDN reported that MAX Environmental, operator of the Bulger hazardous waste landfill in Smith Township (Washington County), PA since 1958, planned to expand the landfill by 21 acres in order to handle an increase of drill cuttings and even liquid waste (which they will turn to solid waste) coming from Marcellus Shale drilling (see New Landfill Expansion in SWPA Aimed at Marcellus Drillers). That did happen and the landfill accepts Marcellus/Utica waste. The new news is that MAX has sold itself to Altus Capital Partners–a private equity investment firm–for an undisclosed amount. As soon as the deal closes, MAX will get a new CEO and MAX’s current CEO/owner, William Spencer, will ride off into the sunset…
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