Is it Time to Tax Big Pipelines in PA?
An Associated Press (AP) story appearing in multiple newspapers and in online outlets has returned to the meme of how unfair it is that pipelines in Pennsylvania are not taxed, as they are in other states like New York, Ohio and West Virginia. Perhaps they have a point? No, MDN isn’t going “soft”! We’ve long made the argument that a permanent structure in the ground should benefit landowners beyond a one-time, up-front payment (see the suggestion by Bryant LaTourette made at the Constitution Pipeline scoping hearing in April 2014: Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The counter to landowners receiving ongoing royalties for pipelines is the argument of electric power lines. They run everywhere over people’s property. You can’t build a structure under or near such lines once they are in place. Yes, they can be taken down/removed (i.e. not “permanent”), but when was the last time that happened? Landowners are not given an ongoing royalty for the electricity flowing through power lines that criss cross their land. Why would you grant an ongoing payment/royalty for a pipeline in the ground if you don’t for a power line above the ground? You see this is a thorny, complex issue. Although individual landowners in states like New York don’t receive an ongoing royalty for pipelines, the pipelines themselves are considered property and pipeline companies are taxed for having them in the ground, giving a community-wide benefit to all residents in a town or village. We’ve remarked before that the property taxes where we live (in NY) have gone DOWN because of a local pipeline. When’s the last time you heard about taxes going down in New York State?! In Pennsylvania, pipelines are NOT taxed, and therefore taxpayers in those communities don’t benefit. That’s the bone of contention…
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In a big metaphorical slap across the face, the Pennsylvania Dept. of Environmental Protection’s Oil and Gas Technical Advisory Board (TAB) has voted to not endorse re-worked drilling regulations proposed by the PennFuture Sec. of the DEP, John Quigley. We told you two days ago the DEP was meeting with TAB to get the group’s rubber stamp of approval (see 
Wow. We didn’t think it possible. The PennFuture Secretary of the Pennsylvania Dept. of Environmental Protection (DEP), John Quigley himself, is sticking up for the honor and reputation of his agency. Last week the Democrat-run Harrisburg Patriot-News ran an attack series against shale energy. We told you about it by reprinting Tom Shepstone’s excellent critique (see 
About 20 hippie retreads showed up in Harrisburg, PA on Wednesday to protest outside of the Dept. of Environmental Protection (DEP) regional office in Harrisburg to protest the fourth meeting of Gov. Tom Wolf’s Pipeline Infrastructure Taskforce. In May Gov. Wolf announced he was forming a taskforce to study and make recommendations on how the state can better work with (i.e. control) where local gathering pipelines are installed (see 
Way back in May 2014 MDN told you that UGI Energy Services, a subsidiary of UGI (a utility company in northeast PA) would build two new pipelines in northeast PA for $80 million that will allow them to transport cheap, abundant, locally extracted natural gas from Cabot Oil & Gas in Susquehanna County to residents in the greater Scranton/Wilkes-Barre area (see 
Shortly after assuming the office of Secretary of the Pennsylvania Dept. of Environmental Protection, John Quigley (who formerly worked for the anti-drilling Big Green group PennFuture) mass-fired a very important group at the DEP called the Oil & Gas Technical Advisory Board, or TAB (see 
We’ve heard just about everything blamed on fracking. Global warming? Yep–blame fracking because fracking produces natural gas and natural gas, when burned, turns into carbon dioxide and and abundance of CO2 in the atmosphere supposedly heats the planet (although the average temp hasn’t gone up in nearly 19 years now). What about STDs–sexually transmitted diseases? Yep–blame fracking because nefarious roustabouts from “foreign” locations like Texas and Oklahoma show up to work on rigs, and the only off-hours things they do is screw the local women-folk and spread STDs all over the place (do you honestly think they have an ounce of energy left after working a 12-15 hour day lifting heavy stuff at a rig site?). Here’s a new one we’ve just heard for the first time: you can blame fracking in places like Pennsylvania for the high cost of firewood this winter. Say what???…
EdgeMarc Energy is a small driller headquartered in the Pittsburgh area, formed in 2012. The company has leased 50,000 acres in the Marcellus and Utica Shales. On Monday EdgeMarc issued a press release to announce they’ve attracted a new investor–the Ontario Teachers’ Pension Plan–which has promised the company up to $300 million in cash in return for part ownership (called an “equity commitment”). The announcement also says EdgeMarc currently drills and produces natural gas in Monroe and Washington counties in Ohio, and Butler County in Pennsylvania. In checking the latest issue of our 
Layoffs in the natural gas industry have cut wide and deep. We spotted one article recently that said layoffs worldwide have hit 200,000 (see Forbes: 
A gang of Big Green groups are tickled pink–or is it tickled “green”–that their continuous frivolous lawsuits against the federal Environmental Protection Agency (EPA) have once again yield the desired result. Radical leftist “green” groups like Earthworks, Environmental Integrity Project, THE Delaware Riverkeeper, and yes, PennFuture (where PA’s current Secretary of the Dept. of Environmental Protection, John Quigley, used to work), had previously sued the federal EPA to force onerous new reporting rules on natural gas processing plants, using lies about the kinds of air pollutants released by the plants. The EPA cooperates with these sleazy organizations in a “sue and settle” scam. “Hey, you sue us for this, a liberal judge will ‘make us’ do it–then we can bypass Congress and everyone else and set up our own laws outside of that stupid old Constitution.” That’s how these groups collude with the EPA (see 
More electricity is disappearing from the electrical grid thanks for Barack H. Obama’s war on coal. AES had considered converting a coal-powered electric plant is operates in Potter County, PA into burning natural gas–indeed had applied for and received permits to do it–but instead they reversed course and have now shuttered the plant they operate in Potter known as the Bear Valley plant…
Good old fracked Pennsylvania Marcellus Shale gas will begin powering passenger trains in Philadelphia starting in 2017, if all goes according to plan. SEPTA (Southeastern Pennsylvania Transportation Authority) announced as part of its “sustainability” efforts they plan to build their own electric generating plant powered by Marcellus Shale gas. The $26.8 million plant will save them money, be better for the environment, and heat SEPTA’s largest bus garage (with excess heat from the plant) to boot. It’s a win/win/win all the way around…
The Keystone Sanitary Landfill is Pennsylvania’s third busiest landfill–located on the outskirts of Scranton. The Keystone Landfill accepts drill cuttings from Marcellus drilling. Last year Keystone applied for a permit to expand the landfill once again–but instead of outward, they want to expand it upward, making it higher, to gain more capacity. At present about 10% of the incoming waste stream at the landfill is shale waste. The Pennsylvania Dept. of Environmental Protection (DEP) had, as of last summer, delayed granting the expansion request pending more study (see 
Last week 17 top Marcellus Shale-related executives–including those from CONSOL Energy, Chevron, Huntley & Huntley, MarkWest Energy, Williams and Columbia Pipeline Group–sent a letter to the Pennsylvania legislature and to PA Gov. Tom Wolf. The letter point blank said don’t slap a new/high severance tax on Marcellus Shale in addition to the already-high tax (called an impact fee). We couldn’t find a copy of the letter to share with you. However, we do have reaction from America’s most liberal governor, Tom Wolf, whose office responded with the “same tired argument” always trotted out by Wolf: he still wants to tax shale to give the money away to teachers’ unions in return for electing him to office. We don’t know how many times we have to say this: these are not empty threats by the industry. The industry is telling Wolf exactly what will happen if he institutes the tax–they’ll leave town…