High Stakes Game of Chicken Between Westinghouse & Mariner East 2
Westinghouse Electric tried “an ambitious new approach to building nuclear power plants” by building sections of the plants in one location before sending them to the construction site for assembly. They tried the process with two nuke plants–one in Georgia and the other in South Carolina. The process they “innovated” failed and took the company down–into bankruptcy. What does that have to do with the Mariner East 2 (ME2) Pipeline project? Westinghouse Electric is headquartered just outside of Pittsburgh and owns a fair amount of land. Mariner East 2 intends to cross a portion of that land. Sunoco Logistics Partners, builder of ME2, attempted to negotiate a payment for an easement to cross Westinghouse’s land–but Westinghouse wanted more than ME2 offered. So ME2 filed paperwork to use eminent domain and “condemn” the Westinghouse property. In other words, let a judge decide how much is fair. Westinghouse joined the chorus that “ME2 isn’t really a public utility”–sounding no different than the Sierra Club and others who oppose the project. That strategy went nowhere, so Westinghouse eventually came back to the bargaining table and this time, worked out a deal–to sell some of their land to ME2. Now Westinghouse is asking the bankruptcy judge in charge of their case to approve the land sale, ahead of the judge’s decision on other matters to do with the bankruptcy. Here’s an account of the high stakes of “chicken” between Westinghouse and ME2…
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Yesterday Noble Energy dropped a bombshell that it has sold its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to “an undisclosed buyer.” That works out to be $3,181 per acre. Not included in the sale is Noble’s half operating interest in the CONE Midstream pipeline gathering system. It was just three years ago that Noble announced it would lease 138,000 feet in a new office building in Southpointe, and move in 200 employees (see 
We live in a country of laws, governed by “the rule of law.” That means we elect people to pass laws, and then we collectively live under those laws–whether we like them or not. If we don’t like the laws, we vote in new representatives to change the laws. Or we challenge the laws in court. But what if those laws become tyrannical? Our founding fathers, like Thomas Jefferson, said a little revolution every now and again isn’t a bad thing and may be necessary. There is a small but well-funded group of radical environmentalists who apparently believe the time has come for revolution. Their motivation is an irrational hatred of fossil fuels, operating under the wrong belief that by burning fossil fuels mankind is doomed. That belief motivates them to use (and abuse) the court system to try and block any and all drilling and pipeline projects. And when the courts don’t decide a case their way? They threaten revolution. They call it “peaceful protest”–but we’ve seen what they mean by that (see 
As construction of the Mariner East 2 NGL (natural gas liquids) pipeline project heats up, thousands of Pennsylvanians are going back to work. Sunoco Logistics Partners (now called Energy Transfer Partners) said it would take some 8,000 workers to build the twin pipelines called Mariner East 2–from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. When Sunoco LP signed a deal to hire union workers for the pipeline, the deal stipulates half of the hires are local–from within PA. Sunoco has lived up to its word, as evidenced by the testimony of the Operating Engineer’s Union (Harrisburg) who has already seen 50 of its members hired to work on the project. What about the other half, the “foreigners” who come from other states? They’re brought in because of required specialized skills. But even the out-of-staters are welcomed–they’re adding big bucks to the local economy… 
Looks like Middletown Township, in Delaware County, PA (Philadelphia suburb), has finally faced reality that the Mariner East 2 Pipeline is coming through town. To be fair, town council came to that conclusion last September when they voted to grant easements to Sunoco Logistics Partners to build Mariner East 2 across four parcels of public land (see 
It seems no matter how many times we calmly, rationally, factually respond to and refute the intellectual dishonesty around the issue of a severance tax in Pennsylvania, PA Democrats pop up to make the same already-refuted, debunked lies they spew, again and again. They must be of the opinion that if you repeat the same lies long enough, people will begin to believe them. And so a group of elected (and appointed) Democrat “leaders” gathered in Wilkes-Barre yesterday to rehash and repeat the same tired old lies about a severance tax. The organizer of the event was State Rep. Eddie Day Pashinski (Democrat from Wilkes-Barre) who stated at the event he doesn’t think the gas companies pay “their fair share.” That is such a bogus statement in so many ways. When did privately earned money suddenly belong to the state in the first place? Does Rep. Pashinski know that drillers already pay a severance tax–called an impact fee? And that by passing a severance tax on top of an impact fee, PA vaults to the top of the list–it would have the highest taxation of the industry in the United States at an effective rate of 9% (see 
Seems like every time we talk about Big Money foundations, those foundations (which are tax exempt) are far-left in philosophy and when they fund anything to do with the environment or education or business, it’s always with strings attached that said activity will have an anti-drilling bias. Need money for a new “study” to bash shale energy? Take your pick. In Philadelphia, there is the William Penn Foundation. In New York (and North Carolina) there’s the Park Foundation. And in Pittsburgh, the Heinz Foundation–run by Teresa Heinz Kerry (whom we call Mamma Teresa here on MDN). Hard left, all of them. So when we spotted an article about another Pittsburgh-based foundation–the Benedum Foundation–that is donating money to HELP the shale industry, well, we knew that’s a “man bites dog” story worthy of highlighting. The Benedum Foundation does a great deal of its grantmaking for science, technology, medical and engineering (STEM) education. Lately they’ve concentrated on training students who will, after school, land a job at someplace like CONSOL Energy, or the under-construction Shell ethane cracker plant in Beaver County. Although Benedum doesn’t spend nearly as much as the larger Heinz Foundation, we see Benedum as the antidote–a counterbalance–to some of the damage caused by Mamma Teresa and her married-into, huge piles of money that she spends to oppose shale energy…
Fire departments, schools, parks and townships are some of the 44 Pennsylvania organizations in 11 counties that will receive $326,800 in funding *this spring* from Williams–through its bi-annual community grant program. Grants up to $10,000 per organization are being awarded by Williams in communities where the proposed Atlantic Sunrise pipeline project will be constructed and operated. This is the fifth round of grants for areas that will host or be affected by the Atlantic Sunrise Pipeline. All together (including this latest round of $326,800), Williams has now given away $1.79 million to communities on behalf of Atlantic Sunrise. Now that’s something worth celebrating! Is your organization eligible? Grant applications are available at 
Whenever a big, important project like the Shell ethane cracker, reported to be a $6 billion investment, goes forward, a whole lotta people were involved before the decision was made. However, if there is one universal truth in business it is this: There is always a champion at the center of any important project. The one person who’s responsibility it is to propel that project forward. The person who, we like to say, has their “butt in a sling.” It is on their shoulders to ensure the projects success. When you dig down into the story of the multi-billion dollar Shell cracker plant now being built in Beaver County, PA, you will find that one person. His name is Brent Vernon. He worked for more than five years to lure Shell to the Keystone State. Vernon was senior project manager for energy for the state when he began working, full time, on the Shell project in 2011. Since then he was promoted, first to deputy director and eventually director of the Governor’s Action Team, a role he continues. Vernon is key–one of the linchpins without whom the Shell deal would not have happened…
More fake “research” is on the way courtesy of the anti-drilling Southwest Pennsylvania Environmental Health Project. The Project is launching a so-called public health registry. Log in to the website and if you live within five miles of a drilling site, you can report your latest headache in an attempt to link it to (and smear) shale development. Yep, just blame everything on drilling. Got allergies? Blame drilling. Headache? Blame drilling. Earache? Blame drilling. Er, a “performance issues?” Blame drilling. (Maybe they’ll give you some free Viagra.) That’s the purpose of this latest sham initiative by the same group that has brought us such glittering examples of “research” as “The List of the Harmed”…
Talk about a waste of taxpayer time and money. The so-called leaders of Newtown Township in Bucks County (Philadelphia orbit) took time out to compose, debate, and pass a resolution opposing the PennEast Pipeline. Even though the pipeline isn’t coming anywhere near Newtown Township. What the vote reveals is that Newtown is led by far-left anti-fossil fuelers with nothing better to do than get on their soapbox and prance around discussing issues that don’t affect the residents of the town. Typical leftist politicians that believe they know better than you what’s best for you–even if it doesn’t even affect you…
Truly maddening. A Pennsylvania farming family has had to put up with Chesapeake Energy’s lame justifications for not paying them a dime in royalties over the past two years, even though Chesapeake continues to extract gas from their property. Chesapeake claims that since 2015, their costs to extract/sell gas from Russ Forba’s land exceeded any revenue generated–by $112,000. Chesapeake promised Forba that the company would not try to recoup those “costs” from future royalties. The company just broke its promise. On Monday, Forba received a statement from Chesapeake revising the price of the gas sold (down), and revising the post-production costs claimed (up) for the month of April 2015. Chesapeake then deducted the extra $5,700 “loss” from current royalty payments to cover the difference–something they PROMISED would never happen. This is why PA landowners are incensed and calling for legislation. We don’t blame them…
Penn State University professor Terry Engelder, the geologist who first discovered the potential of the Marcellus (and called “the Father of the Marcellus Shale”) is retiring from Penn State in June. The Marcellus Shale boom, while starting with a single Range Resources well in 2004, is largely due to the insights of Engelder. In 2007 he did some “back of the envelope” calculations that showed (first) there is roughly 50 trillion cubic feet (Tcf) of recoverable natural gas in the Marcellus. He later revised that number, to 489 Tcf. It was Engelder’s calculations that caught the interest and confidence of drillers who then decided to give the Marcellus a try. The rest is history–and we have Dr. Engelder to thank. Penn State News does a good job in providing a tribute to celebrate the contributions of Engelder to the university’s geosciences department. What will Engelder miss the most when he retires? Finding new shale layers? Figuring out new techniques to extract oil and gas? Maybe a better way of predicting earthquakes? Nope. He’ll miss the people–students and the professors/staff at “one of the finest geosciences departments in the world.” Here’s a proper sendoff for a key figure, a giant in the canon of the Marcellus story…