Pennsylvania

Pennsylvania | Statewide PA

“Survival” – PIOGA Expands Membership to Industrial End Users
April 15, 2016April 15, 2016

The sudden slowdown in drilling activity not only affects drillers, oilfield services companies, midstreamers and the many supply chain companies (restaurants, hotels, fencing, etc.) that service them–it also affects trade associations. Last November America’s Natural Gas Association merged with the more flush American Petroleum Institute (see Two Top O&G Trade Groups to Merge: ANGA & API). In January the Center for LNG announced it is merging with the Natural Gas Supply Association (see CLNG Merges with NGSA, Gets New Director from Former ANGA). Not every association is looking to merge in order to stay alive. The Pennsylvania Independent Oil & Gas Association (PIOGA), headed by the fearless Lou D’Amico, is hurting. Membership (and along with it, dues) is down 40% in the past two years. Ouch. But Lou isn’t looking to merge, instead, he’s looking to expand. That is, expand the types of members that belong to PIOGA. Traditionally small conventional drillers have been the bulk of PIOGA’s membership. Shale drillers, to some extent, have joined too. But with conventional drilling taking a nosedive, Lou needs to cast the net wider–so he’s now looking for industrial customers, manufacturers and the like, who are big users of natural gas, to join…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov. Wolf Promotes New Budget with (Yes) Severance Tax
April 15, 2016April 15, 2016

Randy Albright

We just have to shake our heads. Did Pennsylvania Gov. Tom Wolf learn nothing in his first year in office? Does he not see that expanding taxes during the Obama recession is a recipe for disaster? Is cutting spending (for a Democrat like Wolf) congenitally impossible–like cutting off your own arm? Apparently all of the above is true. Even though we have the worst economy nationally (and in PA) in the past eight years, thanks to Obama and his policies; and even though the shale industry is still in free fall because of low prices (victims of our own success); and even though the default budget passed in PA without a huge increase in education spending for this past school year didn’t result in any “harm” being done to little kiddies; PA Gov. Tom Wolf and his budget lackey Randy Albright are once again out there promoting (i.e. demanding) huge tax increases in the budget due in June of this year. Wolf/Albright want to raise the personal income tax in PA, and (once again) take a run at instituting a Marcellus-killing severance tax, even though the state already has the FULL equivalent of a severance tax when you add corporate income taxes with the impact fee they now pay. Words escape us. It’s beyond insanity. Perhaps gross mismanagement and leadership malpractice?…
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Cameron County | Industrywide Issues | McKean County | Pennsylvania | Pipelines | Potter County | Regulation | Statewide PA

Mr. Causer Goes to Washington – To Talk About PA Pipelines
April 15, 2016April 15, 2016

Pennsylvania State Rep. Martin Causer (R-Turtlepoint) testified before the U.S. House Committee on Agriculture in Washington, DC on Wednesday, April 13. Causer was there to tell the House Agriculture Committee that new pipelines are desperately needed in the farm country he represents. We have a copy of Rep. Causer’s masterful testimony below…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

PennEast Pipeline Spreads Some More Coin in PA/NJ Communities
April 14, 2016April 14, 2016

PennEast Pipeline Route – Click for larger version

PennEast Pipeline yesterday released a list of the latest recipients of its “Community Connector” grants–money that goes to local worthy nonprofit organizations like firefighters and first responders. PennEast awarded $85,000 to 17 different groups, saying they are “proud to help support community organizations where we live and work” across both Pennsylvania and New Jersey. Cynics would say the company is buying local support for the pipeline. Those in the industry (and yes, we’ve heard from them on this issue) say it shows good faith–a willingness to be good corporate citizens. Industry folks also say this kind of support won’t disappear after the pipeline gets built–these kinds of donations are not just a tactic to gain popular support. We’ll hold them to it. This isn’t the first round for PennEast. With this latest $85,000, the company has donated a total of $325,000 since 2014 (see our previous stories here). Here’s the list of the latest 17 organizations to benefit from the PennEast Pipeline…
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Alpha Natural Resources | Energy Companies | Greene County (PA) | Pennsylvania | Rice Energy

Rice Energy Offers Bankrupt ANR $200M for Marcellus/Utica Assets
April 13, 2016April 27, 2016

In March MDN told you that Alpha Natural Resources (ANR), primarily a coal company with 27,400 acres of Marcellus/Utica Shale leases, was throwing in the towel and calling it quits (see Alpha Natural Resources Selling Marcellus/Rice Energy Stake). In March ANR received what it called a “stalking horse bid” for the Marcellus acreage. It will come as no surprise that the bidder, as we learned yesterday, is none other than Rice Energy. Rice and ANR previously worked together on a joint venture. Yesterday Rice confirmed it has entered into a purchase agreement “to acquire Marcellus and Utica assets in central Greene County, Pennsylvania for $200 million in cash, subject to purchase price adjustments.” Rice also announced they will float a new round of stock in order to finance the $200 million purchase (see today’s companion story). Here’s the details on the Rice offer to buy ANR’s Marcellus/Utica assets…
Read More “Rice Energy Offers Bankrupt ANR $200M for Marcellus/Utica Assets”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA House and Senate Panels Vote to Reject DEP’s New Drilling Regs
April 13, 2016April 13, 2016

Yesterday the Pennsylvania State House and Senate energy committees voted to disapprove the state Dept. of Environmental Protection’s proposed new Article 78 and 78a drilling rules. In February when the Pennsylvania Environmental Quality Board (EQB) approved the new regulations after those regs were vigorously opposed by conventional drillers in the state, the Pennsylvania Independent Oil & Gas Association (PIOGA) blasted the decision calling the DEP “deceptive” (see PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). The Pennsylvania Independent Petroleum Producers Association (PIPP) filed a lawsuit on March 24, 2016, in the Commonwealth court of Pennsylvania challenging the legality of controversial new regulations (see PA Conventional Drillers File Lawsuit to Stop New DEP Regulations). The fight has now gone to the legislature, which has some, but not ultimate, authority to derail the new regulations. Yesterday the legislature used that authority when the energy committees for both houses voted to not approve the new regs. What happens next? The state’s the Independent Regulatory Review Commission (IRRC) will review the new regs on April 21 and make a decision about whether to approve them or not…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Talks About Appeal Request re Tragic Dimock Verdict
April 13, 2016April 13, 2016

Last week MDN brought you news that mainstream media has all but ignored, in hopes of burying it: Cabot Oil & Gas has filed a legal motion to appeal the OJ jury decision to award two landowner families in Dimock, PA $4.24 million (see Cabot Files Appeal in Dimock Case – Alleges Judicial Misconduct). The jury made the award even though there was hard evidence that Cabot did not cause methane migration into the landowners’ water wells. Which is why we call them the equivalent of the OJ jury. Total disregard for evidence and decide “with your heart” instead. “That evil big oil & gas company has boatloads of money. Look at those little kids on the stand. Let’s just give them some money, even if the evidence says otherwise.” That must have been the thinking. At any rate, on Sunday Cabot, who has until now been silent about the appeal, issued the following statement. They’re either asking for (a) the court to overturn the verdict, or (b) order a new trial because of judicial misconduct on the part of the landowners’ attorney…
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Energy Companies | Ethane | Exporting | Industrywide Issues | NGLs | Pennsylvania | Rex Energy | Statewide PA

Rex Energy Cuts Deal to Export Ethane, Propane to Europe via Philly
April 12, 2016April 12, 2016

Rex Energy has stepped up to be the second Marcellus/Utica driller to cut a deal using the Mariner East pipeline to ship ethane, propane and (eventually) butane from western PA to the Marcus Hook refinery in Philadelphia, and from there load it onto ships heading to (in this case) Europe. Range Resources was the first driller to use Sunoco Logistics Partners’ Mariner East pipeline to send ethane to Marcus Hook and on to exporting (see Range Resources Ethane Heading to Marcus Hook Beginning February). The Swiss-based company INEOS cut a deal to buy Range Resources ethane to power both Norwegian and Scottish cracker plants (see Cracker Plant in Scotland “Brought Back to Life” Thx to Marcellus Ethane). Now, Rex Energy has cut a deal with INEOS to buy ethane, propane and butane, according to an announcement yesterday by Rex. The particulars (i.e. financial aspects) of the deal were not announced…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

List of 2016 Shale Gas Innovation Contest Finalists
April 12, 2016April 12, 2016

On May 18, the Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC) will announce four $20,000 winners of this year’s Shale Gas Innovation Contest. In addition to showcasing the 12 finalists, this year’s event will also feature a Poster Contest highlighting research underway related to the oil and gas sector–from four major regional research universities. Below we have the list of all 12 finalists with a description of their qualifying technologies. Among the list is one of our favorite companies, HalenHardy, a previous winner of another SGICC award for Shale Gas Environmental, Health, & Safety (see HalenHardy Wins Ben Franklin EHS Award for Silica Air Shower). HalenHardy is headed by serial and intrepid entrepreneur (and MDN friend) Donny Beaver. Good luck Donny!…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA

HBK 2016 Energy Assessment, Predictions for OH/PA on Pipes, Taxes
April 12, 2016April 12, 2016

CPA/consulting firm HBK (Hill, Barth & King) is fresh out with their 2016 Energy Assessment–an analysis of energy trends, opportunities, challenges and risks. In the assessment (full copy below) HBK Energy Advisors (a division of HBK) weighs in on issues like Obama’s odious Clean Power Plan, renewable energy, LNG and more. Of particular interest to MDN is a series of predictions made not in the official assessment, but in an accompanying blog post on the HBK website. The analysts make a series of predictions for Pennsylvania, Ohio, New Jersey and Florida. The first prediction for Ohio is that pipeline work in the Buckeye State will increase, mostly due to the NEXUS pipeline. Which we find interesting. Just last week we told you an analyst from Wood Mackenzie predicted the NEXUS won’t get built (see Utica Event: OH Landowners Will Lose $6.5B in 5 Yrs, NEXUS Nixed). Now we have another analyst/company saying it will get built! Have a look at HBK’s predictions and see if you agree with them…
Read More “HBK 2016 Energy Assessment, Predictions for OH/PA on Pipes, Taxes”
Energy Services | Industrywide Issues | Lebanon County | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

Lebanon County Judge Says Mariner East 2 Can Use Eminent Domain
April 11, 2016April 11, 2016

The last refuge of the desperate in Lebanon County, PA to stop new pipelines from being built is to use the courts to try and delay or stop both the Williams Transco Atlantic Sunrise or the Sunoco Logistics Partners Mariner East 2 pipelines. That refuge is now gone–at least for Mariner East 2. Last Thursday Lebanon County Judge Robert Eby ruled that yes, Mariner East 2 is an intrastate as well as interstate pipeline–giving it authority under PA state law to use eminent domain for those (very) few holdout landowners who refuse to bargain in good faith and simply want to stop the pipeline…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Statewide PA

Delaware Riverkeeper Keeps Up Aggressive Attack on FERC, New Angle
April 11, 2016April 11, 2016

THE Delaware Riverkeeper, a radical left-wing group that’s not much more than its director, Maya van Rossum, and a lawyer, continues (with big money funding from NGOs like the Heinz Endowments and the Park Foundation) to aggressively attack the Federal Energy Regulatory Commission. We warned you last year that Riverkeeper was attempting to overload FERC’s approval process for the PennEast Pipeline by encouraging anti-drilling zealots to register, en masse, as “intervenors” (see Delaware Riverkeeper Scams FERC in Review of PennEast Pipeline). Riverkeeper even asked their wacko followers to register their own children as intervenors–again in an attempt to overload FERC’s workload. Riverkeeper has sued FERC God knows how many times now (see THE Delaware Riverkeeper Sues FERC, Tries to Close it Down). But since none of those efforts are working, Riverkeeper (and van Rossum) are trying yet another tactic. They want the Government Accountability Office (GAO) to conduct a “review” of FERC in hopes that somebody–Obama? Congress? another agency?–at the federal level will come down on FERC to prevent the agency from doing its job–reviewing and approving new pipelines. We have evidence…
Read More “Delaware Riverkeeper Keeps Up Aggressive Attack on FERC, New Angle”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

PA Senate Race – Dems Try to Outdo Each Other as Anti-Frack
April 11, 2016April 11, 2016

“I hate frackers more than you do and I’ll screw them more than you will.” “No, I hate them more than you do!” And so it goes with the Democrats running in the primary for the U.S. Senate in Pennsylvania. The three candidates vying to run on the Dem ticket in November are all, to one degree or another, anti-fracking. The lead candidate is Kathy McGinty, former chief of staff for failing Gov. Tom Wolf and former head of the Dept. of Environmental Protection under Ed “fast Eddie” Rendell. Her challengers are accusing her of being in bed with the frackers. She says fracking is OK–as long as you regulate it to death. None of them are qualified to be Senator, but then look who’s president right now…
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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell has Spent “Half a Billion Dollars” on PA Cracker Already!
April 8, 2016April 8, 2016

The Pittsburgh Business Times hosted an event yesterday in Beaver County, PA–the place where Shell is spending money to explore whether or not to build an ethane cracker plant. Seems like we’ve been writing about Shell’s potential ethane cracker forever. We’ve chronicled just about every up and down. We’ve also highlighted various initiatives they’ve undertaken since announcing Monaca, PA as their chosen site–something they did back in March 2012, now four years ago (see Shell Announces Location of Ethane Cracker Plant). Since that time Shell has purchased the property where they want to build the plant; they’re building a bridge and roads to the plant site; they’ve leased office space near the plant site. They’ve done a whole lot more. What we didn’t realize is that when you add it all together, according to Pat Nardelli, a partner at Castlebrook Development and speaker at the PBT event, Shell has spent “half billion to date if not more, and it’s going up every day.” Yikes! In this economy nobody blows a half bil on something they just decide to walk away from…
Read More “Shell has Spent “Half a Billion Dollars” on PA Cracker Already!”
Anti-Drilling/Fossil Fuel | Crime | Energy Services | Huntingdon County (PA) | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees
April 8, 2016April 8, 2016

Last week MDN told you about the daughter of a Huntingdon County, PA landowner radicalized by Big Green groups–as evidenced by her association with well known protesters previously arrested–who took to a tree on her mom’s property in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). Even though she was breaking the law–and a judge’s order–local law enforcement couldn’t be bothered with climbing the tree to arrest her (see ‘Wackos in the Trees’ Protest Continues in Huntingdon County, PA). Nor, does it seem, did they arrest her after she came down on April 1. She stayed up a tree until April 1 because crews can no longer clear trees for fear of harming the threatened Indiana bat species that sometimes hangs out in those trees. Or at least, that’s what we thought. In a very clever move, tree clearing crews returned to the property this week, after April 1, and cleared more trees previously inhabited by the nutty landowner’s daughter. Don’t worry, they got permission…
Read More “Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Files Appeal in Dimock Case – Alleges Judicial Misconduct
April 8, 2016April 8, 2016

Cabot Oil & Gas has appealed the (OJ-like) jury verdict in the “Dimock” case–a case where the jury ignored the evidence and instead found Cabot guilty of methane contamination of two families’ water wells in Dimock, PA–even though the families admit their wells were fouled BEFORE Cabot began to drill (see Dimock Jury Levies $4.25M Judgement Against Cabot in Dimock Case). Not a single news outlet is covering the appeal. Mainstream media’s favorite tactic is to ignore stories in hopes people won’t notice. Fortunately there are now alternative news outlets, like MDN, where you can learn the truth. The only way we knew about the Cabot appeal was through friend Phelim McAleer, the talented director and star of the documentary FrackNation. Phelim is reporting the appeal on his Facebook page. In the appeal, Cabot says the attorney for the plaintiffs engaged in “repeated misconduct” during the trial. She’d lob false innuendos and statements that were immediately retracted–but the jury heard and obviously believed her. You can’t “unhear” a false statement. In other words, she gamed the system–she didn’t play by the rules. Cabot is asking a judge to overturn the verdict…
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