Pennsylvania

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    Landowners Go to Harrisburg to Pressure Lawmakers on Royalty Bill

    Mr. Smith Goes to Washington
    Mr. Smith Goes to Washington

    Pennsylvania landowners are, as we recently pointed out, in a civil war with the Marcellus industry over the issue of royalties (see Deep Dive: PA Royalties Civil War Between Landowners & Drillers). Landowners want House Bill (HB) 1391 passed–a bill guaranteeing landowners will receive a minimum 12.5% royalty payment regardless of post-production costs. Drillers, being represented by the Marcellus Shale Coalition, are pushing back by saying landowners must live under the contracts they’ve signed. It’s complicated–read our previous articles about it here. With a short time left in this legislative session, landowners continue to press their case with lawmakers. The latest in the skirmish is that landowners have set up a table in the Capitol Rotunda in Harrisburg to lobby (i.e. pressure) lawmakers into taking action on the bill…
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    Shale Insight Starts Today – Visit MDN in Booth 208

    Shale InsightWelcome to Pittsburgh! MDN editor Jim Willis always enjoys the City of Bridges. Today begins Shale Insight. If you’re attending (and a number of MDN subscribers do attend), please stop by Booth 208 and say hello. There will be a number of top notch speakers both today and tomorrow. The person grabbing most of the headlines is Donald Trump, who will speak tomorrow. However, there are many other noteworthy speakers on the agenda. Harold Hamm, CEO of Continental Resources is one of them. Gary Heminger, CEO of Marathon Petroleum is another. Other standouts for MDN: Stacey Olson, the new president of Chevron Appalachia; Gladys Brown, chairwoman of the PA Public Utility Commission; Keith Burdette, Secretary of the West Virginia Department of Commerce; Camera Bartolotta, PA Senator; and Alex Epstein, author of the book, “The Moral Case for Fossil Fuels” (great book, Jim has read it). For the list of speakers and a full agenda, visit: //shaleinsight.com. See you in Pittsburgh!

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    Fossil-Fuel-Hating Sierra Clubbers Plan to Protest Shale Insight

    haterAnti-coal, anti-natural gas, anti-oil, anti-logic…the radicals who make up the Sierra Club are anti-everything. They can’t even stand themselves! Self-loathing seems to be a requirement for membership. The Allegheny sub-group of the Sierra Club is planning to protest in front of the David L Lawrence Convention Center in Pittsburgh this coming Thursday morning. Why? Because presidential candidate Donald Trump is scheduled to speak and they HATE HIS GUTS. They also hate frackers and those who support them, like your humble editor. There’s no better unifier on the left than hatred. MDN will be on location at the event and if we get a chance we’ll snap a picture or two of the nutters out front protesting. Meanwhile, here’s the Sierra Club game plan for Thursday…
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    SWEPI Puts 9,346 Acres of PA Marcellus Leases Up for Auction

    auctionFrom time to time exploration and production companies (aka “drillers” or “producers”) decide to sell leases for acreage they don’t plan to drill on or under. Typically when a new play is discovered there is a bit of a land rush as drillers begin leasing. In the Marcellus, a driller may decide to concentrate on a specific county in the state, as Cabot Oil & Gas did with Susquehanna County in northeastern PA. Cabot happened to hit the jackpot with some of the most productive gas wells on the planet. Other times, when the leasing is done and drilling has begun drillers begin to figure out where they want to spend their money. It takes a lot of money to drill a Marcellus well–on the order of $7 million. Eventually drillers find there are isolated tracts of acreage they’ve leased that don’t fit with their future plans, so they either horse trade and swap, or perhaps put the acreage leases up for public auction. Such is the case with Shell’s SWEPI subsidiary. They recently posted three largish tracts of leased acreage up for auction–two in Tioga County, PA and one in Potter County, PA. Here’s a description of the land SWEPI is trying to dump…
    Read More “SWEPI Puts 9,346 Acres of PA Marcellus Leases Up for Auction”

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    DC Liberal Says Shell Cracker a Bad Deal for PA Taxpayers

    unbelievableThis story is unbelievable on so many levels. A pointy-headed liberal who cloisters himself inside the insular Beltway of Washington, DC made a trip to Pittsburgh last week to talk to a small class of 70 students at Carnegie Mellon University. In this talk the lib proclaimed that the “incentives” provided by PA to Shell to lure a cracker plant to the state are, essentially, monies the state didn’t have to spend and a burden to the taxpayers of PA because Ohio and West Virginia may also reap some of the benefits of the cracker (without “paying” for it). The lib’s operating assumption is that 100% of everyone’s money belongs to the all-knowing government–including money made by big, evil corporations like Shell. He further states that by granting a few exemptions on taxes to Shell, PA is taking money out of the pockets of common folk. His philosophy and assumptions are so twisted it’s beyond belief. What’s more twisted is that the Pittsburgh Post-Gazette wrote a major story about the talk–as if it’s news…
    Read More “DC Liberal Says Shell Cracker a Bad Deal for PA Taxpayers”

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    700+ Landowner Rally in Bradford County, PA Pushes Royalty Bill

    civil-warFor some time now MDN has highlighted the ongoing internal division among the ranks between Pennsylvania landowners and drillers over the issue of royalty checks. PA landowners are supporting House Bill (HB) 1391 which would guarantee landowners receive a minimum 12.5% royalty check regardless of post-production costs (see New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties). Disagreement over the bill has erupted into a full-blown civil war, with landowners in Bradford County, PA–one of the most heavily drilled counties in the state–leading the charge (see Civil War: Bradford PA Escalates Fight with MSC re Royalty Bill). Last night the troops in Bradford assembled, and their numbers were 700+ strong, a very impressive showing. The rally’s purpose in Bradford was to call attention to HB 1391 and to specifically put pressure on PA legislators, whom attendees said were bowing to pressure (and money) from industry lobbyists–namely the Marcellus Shale Coalition. Here’s what went down at last night’s assembling of the troops…
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    Former PA Game Commissioner Fined $75K for Lease Moonlighting

    william-capouillez
    William Capouillez

    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. It became a serious legal issue for at least one driller–Range Resources. The independent 8-member board that runs the Game Commission was about to promote Capouillez to the top job of executive director when then-Gov. Tom Corbett put the brakes on it (see PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission). In September the chairman of the PA House Committee on State Government, Daryl Metcalfe, asked the State Ethics Commission to investigate his activities (see PA Game Comm. Head Not Afraid of Gas Leasing Ethics Investigation). Capouillez’s response was “bring it on.” He said he had not taken on new clients for his moonlighting job in three years and had done nothing wrong. The State Ethics Commission did investigate and now, three years later, the Commission levied a $75,000 fine, which Capouillez has agreed to pay, although he remains defiant and says the fine is a tiny fraction of the original fine sought–indication of his vindication…
    Read More “Former PA Game Commissioner Fined $75K for Lease Moonlighting”

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    PA DEP Tells Mariner East 2 to Correct “Significant Deficiencies”

    Mariner East 2
    Mariner East 2 – click for larger version

    John Hohenstein, the head honcho for dams, waterways and wetlands with the Pennsylvania Dept. of Environmental Protection (DEP) sent a strongly-worded missive (21 pages long, full copy below) to Matthew Gordon, principle engineer and project manager for Sunoco Logistics’ Mariner East 2 pipeline project last week. The letter was an assessment of Mariner East 2’s application with the state to cross numerous waterways and swamps as it is (mostly) built next to existing pipelines and stretches across 17 PA counties, spanning the state. In the letter Hohenstein tells Gordon there are “significant technical deficiencies” in the application, and unless those deficiencies are addressed by November 7, Sunoco can kiss stream-crossing approval goodbye…
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    PA Town’s Angst Over Mariner East 2 Pipeline Near School, Park

    logo-transThere is no doubt Sunoco Logistics Partners has been pushing a boulder up a hill when it comes to the Mariner East 2 pipeline project–a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia, carting ethane, butane and propane to the facility from both the Utica and Marcellus region. For over a year the project was mired in legal challenges of whether or not it can claim public utility status, with a right to use eminent domain. In July, PA’s Commonwealth Court ruled it is a public utility with a right to use eminent domain (see Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline). But the fight continues–town by town. Nowhere is that more evident than Middletown Township in Delaware County, PA. Monday night the town council voted, unanimously, to put an ordinance on the docket for council members to vote on at the Sept. 26 meeting, an ordinance that if passed, will allow Sunoco LP to move forward with building the pipeline on public land in the town–in one case across a park, and in another close to an elementary school…
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    Spectra Admits Detecting Corrision in Exploded TETCO Pipe 4 Yrs Ago

    Spectra blazeOn April 29, Spectra Energy’s Texas Eastern Transmission (TETCO) “Delmont Line 27” pipeline exploded in Westmoreland County, PA, seriously injuring one resident who still cannot walk after being burned over much of his body (see Texas Eastern Pipeline Explodes near Pittsburgh, Antis Celebrate). The reason for the explosion and fire was corrosion on welds covered with a particular kind of pipe tape no longer in use (see Spectra Says PA Pipeline Explosion “Unacceptable,” Blames Pipe Tape). Brace yourself for news that may make you angry: An investigation four years ago (in 2012) discovered corrosion in the very area where the pipe would eventually explode. Spectra says they documented the corrosion, but pipe corrosion happens over time–this is nothing new–and the thing to do is to monitor it. Spectra planned to reexamine the welds and the corrosion again in 2019, per the normal and accepted safety schedule. According to Spectra, until now it has been observed that corrosion of pipes happens at a rate of no more than 2-3% per year. In the case of the exploding TETCO pipeline, the corrosion rate was vastly accelerated, more like 10-15% per year since the last examination. What made it speed up?…
    Read More “Spectra Admits Detecting Corrision in Exploded TETCO Pipe 4 Yrs Ago”

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    Visit MDN at Shale Insight in Pittsburgh Next Week

    Shale InsightBy our reckoning, the 2016 Shale Insight event being held in Pittsburgh next week (Sept. 21-22) will be MDN editor Jim Willis’ fifth consecutive Shale Insight event. In past years Jim has hung out at the NGI (Natural Gas Intelligence) booth. This year Jim and Marcellus Drilling News will have their own booth: #208 (near the entrance). Jim invites MDN readers who are attending to stop by and say hello! Jim will bribe passersby with free candy, so stop by and grab a piece! What’s that? You aren’t (yet) registered to attend Shale Insight? Let’s get that rectified right now. There are many reasons to attend, including keynote addresses by Harold Hamm, CEO of Continental Resources, and a closing keynote by none other than The Donald (as in Trump). Here’s a rundown of what’s happening next week at Shale Insight…
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    DOE Gives $13M in Grants for Methane Emissions, Some in PA

    money-bag.jpgLast week the U.S. Department of Energy (DOE) doled out a total of $13 million in grants for twelve multi-year research projects. The aim of the projects is to develop ways to mitigate methane emissions from natural gas pipelines and storage infrastructure, ways that don’t break the bank. Two of the twelve projects will be run in Pittsburgh. PPG Industries, the Gas Technology Institute and RTI International received a combined $876,639 to study remote monitoring of natural gas pipelines. The University of Pittsburgh and Corning together got a whopping $1.2 million to develop an advanced distributed optical fiber technology for natural gas infrastructure monitoring. Here’s the lowdown from the DOE…
    Read More “DOE Gives $13M in Grants for Methane Emissions, Some in PA”

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    Twitter Fight Over PA HB 1391 Royalty Bill

    tweetmeChanneling our inner Joan Rivers: Can we talk? It hurts when a good friend publicly criticizes you. It feels like you’ve been stabbed in the back. Perhaps a case of public criticism is one of the reasons for the developing rancor (we call it a civil war) between landowners and the Marcellus industry in Pennsylvania. Landowners are upset that their royalty checks are, in some cases, pennies–as in less than one dollar. Drillers claim that super low prices they receive for the gas are to blame–that nobody is making money right now. Landowners say that drillers (e.g. Chesapeake Energy) are deducting post-production costs that they shouldn’t be allowed to deduct, resulting in worthless royalty checks. For a number of years landowners in Pennsylvania have supported legislation to force drillers to pay a minimum 12.5% royalty, which is stipulated under a 1979 law. Drillers say post-production costs are written into many contracts and if it’s there, landowners must live by the contract. It’s turning into a mess. We’ve covered it extensively (see our articles on HB 1391). When we write about it, it’s from the perspective of a broken heart that we have a civil war brewing. When mainstream media writes about it, it’s typically with some degree of glee and happiness that “the other side” has infighting going on. An article appearing in today’s Pittsburgh Post-Gazette does a good job of summarizing what we’ve previously posted on the issue. However, the Post-Gazette article adds one new bit of information we didn’t know about: earlier this summer there was a Twitter fight/dust-up between PA-NARO (National Association of Royalty Owners) and the MSC (Marcellus Shale Coalition)…
    Read More “Twitter Fight Over PA HB 1391 Royalty Bill”

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    Explosion, Fire Shut Down PA NatGas Electric Power Plant

    talen-energy-fire2There was an explosion, followed by a fire, at a natural gas-fired electric generating plant last night at Talen Energy’s Lower Mount Bethel power plant along Depues Ferry Road in Lower Mount Bethel Township, Northampton County, PA (Lehigh Valley area). Near as anyone can tell, the explosion and fire had nothing to do with natural gas or the plant itself. The explosion and fire were in an electrical transformer on the outside of the building that houses the machinery producing electricity. The entire plant is currently shut down, not producing electricity, to fix the transformer and to understand what happened to prevent it from happening again. Nobody was injured. The entire thing is pretty much a non-event. We mention it because of the breathless way it’s being reported–with headlines trumpeting a fire at a natgas power plant. Every year (month? week?) transformers blow up around the country outside of other types of buildings, including nuclear plants (see this one from Sept. 4 in Florida, and this one from Aug. 30 in Tennessee). Because natural gas is connected to the story in Northampton County, it’s a major headline. Again, natgas had nothing to do with explosion and subsequent fire… Read More “Explosion, Fire Shut Down PA NatGas Electric Power Plant”

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    DCNR Blocks New Marcellus Drilling on PA State Lands

    DCNR logoWhat happens when you put a virulent anti-driller in charge of a state’s forestry service, a state that previously had a small, safe, healthy program to allow some shale drilling, giving taxpayers a break with a source of new revenue? Of course the anti-driller immediately tries to quash any more new drilling efforts. And that’s just what has happened with former PennFuture president and current Secretary of the PA Dept. of Conservation and Natural Resources (DCNR), Cindy Dunn. We called for her firing back in June when she was caught using–we’d say misappropriating–taxpayer money to send her staff to Big Green reeducation events (see Time to Fire Cindy Dunn, Last of Wolf Admin’s PennFuture Radicals). But no. She remains at her post, obstructing drilling in any way she can. The latest in her efforts is an updated plan from the DCNR’s Bureau of Forestry, which manages 2.2 million acres of state lands, in which the DCNR pledges to block any new Marcellus drilling on state lands and outlines their plans to begin hassling those who own mineral rights under state lands (and can legally extract shale gas) by requiring “definitive proof” that they own the mineral rights. In other words, they’re going to try and tie rights owners and drillers up in so much red tape, they’ll never even think about drilling a new well on state land…
    Read More “DCNR Blocks New Marcellus Drilling on PA State Lands”

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    Moxie Chooses EthosEnergy to Run NEPA NatGas Electric Plant

    ethoseenergyIn June 2014 MDN broke the news that Moxie Energy was in the hunt to begin a third new Marcellus gas-powered electric plant project in Pennsylvania, near Wilkes-Barre (see Moxie Energy in Hunt for Third Marcellus-Powered Electric Plant?). Indeed, our suspicions were borne out. In November 2015 Moxie selected Gemma Power to build the plant, and construction began a month later (see Moxie Marcellus-Powered Electric Plant Breaks Ground in NEPA). The 850-megawatt plant will use local Marcellus Shale gas to power it. Last week came the news that Moxie has contracted with EthosEnergy to run and maintain the plant. EthosEnergy announced it will 20 full-time employees from the area to run the plant. This is great news, signaling the project nears completion and start-up…
    Read More “Moxie Chooses EthosEnergy to Run NEPA NatGas Electric Plant”