PA Releases Study on Bakken Crude Shipments Passing Through
God protect us from politicians whose “top priority” is to protect us. MDN previously told you that America’s most liberal governor, PA Gov. Tom Wolf, hired a high-priced consultant from the University of Delaware in April to do a top to bottom review on railway safety with a focus on how PA might better “protect” (i.e. prevent) Bakken shale oil shipments traveling through the state on the way to refineries (see PA Gov Wolf Takes Aim at Bakken Oil Trains Traveling Thru PA). The high-priced consultant, Dr. Allan Zarembski, has turned in his assignment with 27 recommendations (full copy of his report below). In eyeballing the list some of the recommendations certainly look reasonable: slow down to 35 mph if you’re passing through a city with a population of 100,000 or more; test the tracks three times a year; hire inspectors who know what they’re doing; etc. We suspect when the experts at Norfolk Southern and CSX have had a chance to review the report we’ll hear how these recommendations are intended to slow or stop crude by rail (CBR) shipments through PA. We’d like to be wrong about that, but given Wolf’s behavior an uppity attitude toward the railroads so far, we’re pretty sure we aren’t wrong…
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Where does the Pennsylvania budget negotiation/standoff stand? Depends on who you ask. There have been some intense negotiations over the past few days (a room with a bunch of men hollering at each other). When he emerges from the meetings, PA Gov. Tom Wolf, the most liberal governor in the United States, paints a smile on his face and mouths unspecific platitudes about making progress. When Wolf’s top surrogate emerges, State Sen. Vincent Hughes (Democrat from Philadelphia), Hughes says they aren’t any closer to getting Republicans to cave on a Marcellus Shale-killing severance tax. And that irks him. And Hughes blusters that there will be NO budget without a severance tax as part of it. Good luck with that Sen. Hughes. We applaud Republicans for preserving the Marcellus industry–what’s left of it in this low price environment. Let’s hope Republicans don’t cave to the bluster and deceit being pedaled by the Democrats in Harrisburg. We certainly understand the Dems are in a real bind. They PROMISED the teachers unions big money in return for their support. This is a payoff–shaking down the Marcellus industry to give the money to overpaid teachers and union bosses. And if Wolf doesn’t pull it off–he can kiss a second term good-bye as far as the unions are concerned. They play for keeps and Wolf knows it. Here’s the latest in the ongoing budget battle…
Major changes are on the way for Pennsylvania’s conventional (vertical) and unconventional (shale/horizontal) drillers. In 2011 PA began a process that’s gone on way too long, to update certain regulations that apply to oil and gas drillers known as Chapter 78 of the 1984 Oil and Gas Act. Along the way the PA legislature decided there should be separate rules governing conventional and unconventional drilling–so Chapter 78 has become Chapter 78 (conventional) and 78a (unconventional). PA was close to adopting the new rules at the end of the Tom Corbett administration but then he lost his bid for re-election, throwing the process into turmoil once again with newly elected Tom Wolf and his PennFuture buddies wanting to put their own stamp on drilling regulations in the Keystone State (see 
If you’re a Big Green group, like THE Delaware Riverkeeper, you have millions of dollars to a) launch lawsuits against the natural gas industry, and b) buy yourself research studies that support your twisted viewpoints. It is the latter that happened yesterday. CNA, a not-for-profit organization once called the Center for Naval Analyses, sells itself to the highest bidder (the oldest profession in the world). Most recently they sold themselves to THE Delaware Riverkeeper (we certainly hope they used protection). CNA and THE Delaware Riverkeeper held a press briefing yesterday to release a “study” by CNA titled “The Potential Environmental Impacts of Fracking in the Delaware River Basin” (full copy below). What did the “researchers” at CNA, which is based in Arlington, VA just outside the DC orbit, find? If the moratorium is lifted and shale drilling is allowed in the Delaware River Basin–essentially Wayne and Pike counties in Pennsylvania–CNA says it will lead to “land cover disturbance” in “core forest areas”, extreme water withdrawals from poor little creeks and streams, nasty wastewater polluting everything, erosion everywhere, multiple compressor stations and untold ill health impacts for 75,000 people who live close to all of this mess. See what $320,444 (the actual cost of this study) can buy you? We hope it felt good for Riverkeeper…
On Friday Baker Hughes, which is being forced into a merger with Halliburton by the end of this year/early next year, issued a summary of rig counts last Friday. At first blush it appears to be good news, but when you dig under the surface, it’s not–at least for the Marcellus/Utica. The international rig count was 1,118, down 28 from the 1,146 counted in June 2015. However, the average U.S. rig count for July 2015 was 866, up 5 from the 861 counted in June 2015. It appears we’ve turned the corner on how low rig counts will go–we’ve bottomed and are either holding steady (in the U.S.), or perhaps every so slightly gaining ground again. But then we ran the numbers for the Marcellus/Utica and found rig counts continue to decline month over month…