Pennsylvania

Commodity Price | Energy Services | Industrywide Issues | Pennsylvania | Supply Chain | UGI Energy Services | Union County

Marcellus Shale Gas Road Show Visits Union County, PA
May 18, 2015May 18, 2015

Last Friday approximately 100 business leaders gathered in Lewisburg (Union County), PA for the “Think About Energy” briefing hosted by America’s Natural Gas Alliance (ANGA), UGI Utilities, Inc., UGI Energy Services and the Greater Susquehanna Valley Chamber of Commerce. The energy briefing is the seventh such briefing in a series being held throughout PA over the past year. The briefings focus on the supply outlook for natural gas and natural gas liquids, as well provide information on production, consumption trends, utilization opportunities and infrastructure developments. That is–the briefings help those who own or run businesses use and profit from the availability of cheap, abundant Marcellus Shale gas and figure out how to plug into the supply chain. Such sessions are not uncommon. What is uncommon about this session is it’s location–Union County–which is south of Lycoming County and east of Centre County. Union has not (yet) seen a single Marcellus Shale well drilled…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

More Signs Shell is Close to Decision on PA Ethane Cracker Plant
May 15, 2015May 15, 2015

More signs that Shell is much closer to a decision on whether or not it will build an ethane cracker plant in Monaca (Beaver County), PA. An executive vice president with Shell Chemicals, speaking off-script at an event in Germany, said the company expects to make a decision “soon.” After that an official Shell spokesman, speaking on-script, came along to clean up the EVP’s poopy mess and said there is no timeline on a decision. Another positive sign, according to the EVP, is that the front-end engineering and design study on the project has been completed. But according to the spokesman, even though the study is done, there are “still hurdles” before making such a large investment decision. So it’s a tit for tat, back and forth. Our take: even though we’re suffering from cracker fatigue, we continue to be hopeful that Shell will be the first of those to announce a possible cracker to actually pull the trigger and build it…
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CNG/LNG | Energy Services | Industrywide Issues | Pennsylvania | UGI Energy Services | Wyoming County (PA)

UGI Building LNG Plant in NEPA, Local Marcellus Gas to Feed It
May 15, 2015May 15, 2015

We think this is very cool, and forward looking. UGI Energy Services, a subsidiary of northeast PA utility giant UGI Corporation, announced yesterday they will spend $60 million to build a new LNG production plant in Wyoming County, PA (northeast part of the state). The facility will liquefy locally produced Marcellus Shale gas–with a capacity of up to 120,000 gallons of LNG per day. There will also be a storage facility on site. UGI says the market for LNG is rapidly growing. Not only do trucking fleets, like UPS, use it, but drillers use it to power rigs and industrial plants use it in locations where there are no natural gas pipelines. UGI sees a rosy future for LNG in northeast PA…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

StateImpact Targets Philly Mayoral Candidate for “Ties” to Marcellus
May 15, 2015May 15, 2015

The anti-drilling StateImpact Pennsylvania, an initiative of taxpayer-funded PBS, recently published an “expose” on the race for Philadelphia mayor and how fossil fuel companies–namely the Marcellus Shale industry–are corrupting the race with huge donations to candidates. We mean, it’s just so unbelievable that, well, we don’t believe it! Huge. Money corrupts. Bags and bags of money from those evil, nasty frackers meant to buy off the mayor’s race in the liberal bastion of Philly. It’s absolutely sinister. Oh. How much money is being donated by frackers? Because he’s a state senator, only one of the dozen or so running is required to file financial statements–State Senator Anthony Hardy Williams. So we have the best data on Tony. By the way, Tony’s wife Shari (a fine lady whom we are privileged to have as an acquaintance) works for the enemy–the Marcellus Shale Coalition. StateImpact hates the MSC and by extension, anyone associated with them. So StateImpact poured over the recent financial filing by Williams and this is the huge smoking gun they found…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

PA Anti-Driller Scroggins Indicted with Felony Counts for Illegal Taping
May 14, 2015May 14, 2015

A little-known (outside of northeast Pennsylvania) anti-driller, Vera Scroggins, was fined $1,000 last month in Susquehanna County court and the judge told her she’s going to jail if she doesn’t pay it (see PA Anti-Driller Fined $1K for Trespassing on Cabot O&G Site, Jail?). This month she was permanently banned from trespassing on Cabot Oil & Gas property in the county (see PA Fracktivist Permanently Banned from Cabot Property). It seems Vera’s legal problems are not over yet. She’s just been indicted on several felony counts for allegedly secretly videotaping and recording a conversation with a lawyer that happened two years ago, without permission…
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Energy Companies | Hilcorp Energy | Industrywide Issues | Lawrence County | Pennsylvania | Regulation

Conflict of Interest Prevents Hilcorp Wellpad Approval, What Now?
May 14, 2015May 14, 2015

A strange ending occurred at the Pulaski Township (Lawrence County), PA Board of Supervisors meeting Monday night. The marathon four hour hearing saw Pulaski’s three Supervisors (actually, two of the three) approve one of two conditional use permits to allow Hilcorp to construct a wellpad on the property of Victor A. Litwinovich on Topper Hill Road–much to the consternation of anti-fossil fuel ninnies who were present. But when it came to approving a second Hilcorp wellpad–on the property of Sam Varano and his wife, Beverly, on Evergreen Road–the board couldn’t get a single motion among the three Supervisors to approve it. Why? Because one of the Supervisors is Sam Varano himself–a clear conflict of interest. A second Supervisor is Greg Carna, who owns land adjacent to Varano that is leased to Hilcorp and, presumably, would be included in the Varano well drilling unit–also a conflict of interest. That left the third Supervisor, Lori Sniezek, who won’t vote any Hilcorp matters because she is employed full-time by Hilcorp. Ethics rules barred any of the three from making a motion to approve the wellpad. Without a motion, Varano gavelled the marathon session to a close. What will happen next?…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

West Goshen, PA Reversal: Votes to Approve Mariner East Pipeline
May 14, 2015May 14, 2015

One by one the remaining communities that were fighting Sunoco Logistics and the company’s plans to re-purpose the Mariner East pipeline to flow natural gas liquids is disappearing. Sunoco is working with communities individually to address their concerns and resolve the issue to the point that the company must be near to completing the Mariner East project. As evidence, it was only last fall that West Goshen Township (near Philadelphia) took Sunoco Logistics to court in an attempt to stop them (see West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline). Yesterday West Goshen officials voted to accept a settlement agreement with Sunoco Logistics. West Goshen didn’t get everything they wanted and Sunoco didn’t either. But the agreement is done and the pipeline, which is already in the ground in West Goshen, will receive some safety enhancements and become operational…
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Pennsylvania | Statewide PA | Statewide WV | West Virginia

Winners of $100K for 2015 Shale Gas Innovation Contest Announced
May 14, 2015May 14, 2015

A huge congratulations for the four winners of this year’s Annual Shale Gas Innovation Content, hosted by the Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC). The four winners each received a check for $25,000 and bragging rights as being among the most innovative with products and/or services that are new, and make a difference in Marcellus and Utica Shale energy. The four winners are: Appalachian Drilling Services, EthosGen, Fairmont Brine Processing and PixController. Here’s the unique products/services each one provides…
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Anti-Drilling/Fossil Fuel | Bradford County | Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

Reversal: Media Discredits Penn State Water Contamination Study
May 13, 2015May 13, 2015

The mask has been ripped off fractivist liars peddling what they pretend is science–and it’s been ripped off by mainstream media outlets including the Associated Press, USA Today, the International Business Times and (yes) The New York Times. Let us explain. Last week MDN brought you a story about a new research study that was ostensibly authored by Penn State researchers which found, using “non-traditional” methods of research, that wastewater leaking from an above-ground impoundment had migrated up to a mile and a half away and had contaminated three private water wells in PA–five years ago (see Penn State Finds Chemical Migration in 3 PA Water Wells from 2010). We told you how mainstream media, including the AP, had gone wild with excitement, endlessly repeating the story with the implication this is the smoking gun. The so-called research paper was published in the peer reviewed journal Proceedings of the National Academy of Sciences–a gold standard among academic journals. It seems one of the authors of that paper lied…
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Air Quality | Energy Companies | Energy Services | Industrywide Issues | Litigation | Lycoming County | National Fuel | Pennsylvania | Regulation | Seneca Resources

PA DEP Loses its ‘Common Sense’ in Seneca Air Pollution Ruling
May 13, 2015May 13, 2015

Every now and again the legal definition of “adjacent” and “contiguous” pops up in lawsuits in Pennsylvania related to natural gas drilling. Two years ago we highlighted the issue (see Should PA Compressor Plants Miles Away be Considered “Adjacent”?). The argument revolves around lumping together several potential air pollution sources, like compressor plants and even well pads and pipelines–into one, common, larger source of air pollution for the purposes of regulation. Smaller sources are regulated by the PA Dept. of Environmental Protection (DEP) and larger sources, over a certain threshold, by the federal Environmental Protection Agency (EPA), with much stricter and more expensive standards. The PA DEP, for whatever reason, has gone after Seneca Resources and its parent company National Fuel Gas Co. for their operations in Lycoming County, PA. Even though Seneca’s well pads, pipelines and compressor stations are miles apart, because they are all owned by one corporate entity, the DEP wants them all lumped together into one source for pollution regulation. Although the combined single source would not trigger EPA regulation, Seneca/National Fuel Gas is suing the DEP to push back, on principle. The case will get a hearing in court this week…
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Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Regulation | XTO

XTO Files Paperwork to Double Size of NGL Plant in W PA
May 12, 2015May 12, 2015

In 2013 XTO Energy began operation at its very own natural gas liquids (NGL) cryogenic processing facility in Butler County, PA (see XTO’s New NGL Recovery Plant in Butler County, PA Now Online). Life is good in the midstream. According to the Pittsburgh Business Times, XTO has just filed paperwork with the state to build a new plant at the site, doubling capacity at the facility…
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Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

USGS Research – Marcellus Wastewater from 13 PA Wells Tested
May 12, 2015May 12, 2015

The U.S. Geological Survey (USGS) has just published a new research paper on the topic of produced water–the water that comes out of a drilled hole, drilled for an oil or gas well. The paper, titled “Organic and inorganic composition and microbiology of produced waters from Pennsylvania shale gas wells” was published in the journal Applied Geochemistry and looked at produced water samples from Pennsylvania Marcellus Shale wells. The weakness in the research is that it is based on water samples from only 13 wells. Quite frankly, the research (which we think pursues a worthwhile line of inquiry) raises more questions than it answers. What can we divine from this study? In our cursory review, it appears two things stand out: (1) Although the inorganic chemistry of the produced water was pretty consistent across all 13 wells, there were big differences in the organic geochemistry and microbiology (bacteria) from well to well; and (2) volatile organic compounds (VOCs) were found in only a few samples–just 4 of the 13 wells…
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Belmont County | Energy Companies | Greene County (PA) | Ohio | Pennsylvania | Rice Energy | Washington County

Rice Energy 1Q15 Earnings Call: 100% Focused on 3 Counties
May 11, 2015May 11, 2015

Last Friday MDN brought you the Rice Energy first quarter 2015 update (see Rice Energy Doubles Production 1Q15; Utica Flows; Ekes Out a Profit). On Friday, Rice’s upper management held an earnings call with analysts and as always, quite a bit more comes out in the call than in the official press release. Below is Rice Energy CEO Dan Rice’s prepared remarks on that call with some interesting details on both their Marcellus and Utica operations. Among the interesting comments: Rice is 100% focused on just three counties in the Marcellus/Utica…
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Butler County | Carroll County | Energy Companies | Lawrence County | Ohio | Pennsylvania | Rex Energy

Rex Energy to Sell Acreage in OH & PA, Focus on 3 Counties
May 11, 2015May 11, 2015

Last week MDN brought you the first quarter 2015 update for State College, PA-based Rex Energy (see Rex Energy 1Q15: Production Up 61%, Revenue Down 33%, Gulf Coast Deal). Rex’s management held an earnings call later that day, and as is typical, a some important news was revealed on that call that was not included in the press release update. Namely, Rex is looking to sell it’s leased Utica Shale property in Belmont, Guernsey and Noble counties in Ohio. They also plan to sell leases in Westmoreland, Clearfield, and Centre counties in PA. When it’s all over and done, Rex will be concentrating on just three counties…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA

More Marcellus Gas for Philly: Texas Eastern Pipeline Expansion
May 11, 2015May 11, 2015

A new pipeline expansion project that will bring more cheap, abundant and wholesomely fracked Marcellus Shale gas to the Philadelphia, PA area was announced late last year by Spectra Energy–and somehow it escaped our notice! The Greater Philadelphia Expansion Project will not involve building any new greenfield pipeline but rather will expand (using larger diameter pipes and looping new pipes next to existing pipes) for the Texas Eastern pipeline that already serves the Philly area. Currently, the Texas Eastern pipeline delivers 550,000 dekatherms per day (Dth/d) of natural gas into the greater Philadelphia region (roughly 550 million cubic feet per day). The expansion will add an additional 475,000 Dth/d (or 475 Mmcf/d)–nearly doubling capacity. The open season–the time when customers can officially sign contracts to reserve capacity–ended last Friday. No word yet on how that went. According to Spectra Energy, this is very early days yet in the life of this proposed project. Below we have more details about the project along with a map…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell to Close on PA Cracker Plant Property in “Next Few Months”
May 11, 2015May 11, 2015

Last week we told you a positive sign that the proposed $2-$3 billion ethane cracker plant to be built by Shell in Monaca (Beaver County), PA was the joint information session recently held by the Dept. of Environmental Protection and Shell to discuss an air quality permit the DEP will issue for the project (see Progress: DEP & Shell Hold Info Session on PA Cracker Plant). Here’s yet another very encouraging sign: Horsehead Corporation, which still owns the site Shell would use to build the plant, said in their first quarter update that they expect to close on a sale of the property to Shell “within the next few months”…
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