Pennsylvania

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    DEP Approves MarkWest Plan to Expand Bluestone Gas Processing Plant

    We wouldn’t classify it as one of the major miracles, but perhaps as a minor miracle. Something comparable to a picture of the Madonna weeping real tears. The Pennsylvania Dept. of Environmental Protection (DEP), under the leadership of DEP’s PennFuture Secretary John Quigley, has signed off on a MarkWest Energy request to double the size of the Bluestone natural gas processing facility in Butler County. MarkWest plans to build two new units at the facility (200 million cubic feet per day of capacity for each, or 400 Mmcf/d total). The first of the two will, if all goes as planned, come online by the end of this year…
    Read More “DEP Approves MarkWest Plan to Expand Bluestone Gas Processing Plant”

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    FUD Splatter: PA IFO Says Lower Impact Fee Revenue Coming in 2015

    mud splatterIn the midst of a political debate about whether or not to enact a severance tax comes another masterful one-two punch. First punch: the Democrat-controlled Pennsylvania Independent Fiscal Office (which is manifestly NOT “independent” but indeed is VERY dependent–on the Democrat Party) has issued an analysis that the world is ending for the impact fee assessed on Marcellus drillers. The IFO, spreading FUD (fear, uncertainty and doubt) says this year the impact fee is on track to raise the least amount of money it has raised since it’s introduction in 2012 (gasp!). How much less? Somewhere between $14 million and $33 million less (between 6-13% less). Why? Because drillers have slowed down and in some cases stopped drilling new wells due to low prices for natural gas. We note the IFO has never before, according to our recollection, issued such a forecast this early in the year. Why is that? Because the Dems need something/anything to try and bludgeon and bully Republicans into accepting the worst idea ever–taxing a single industry to transfer its wealth to another group of people who don’t earn any wealth on their own–teachers’ unions. Big Education only takes–they never give (except to transfer some of their taken money via union dues back the Democrat Party in a quid pro quo). The second punch then arrives right on cue, from a Democrat sycophantic news outlet publishes this breathless “news”…
    Read More “FUD Splatter: PA IFO Says Lower Impact Fee Revenue Coming in 2015”

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    Snapshot of 2015 PA Marcellus Activity So Far – Numbers are Down

    As part of an artful Democrat scheme to try and build support for PA Gov. Tom Wolf’s worst idea ever–a high severance tax on the Marcellus industry–the Pennsylvania “Independent” Fiscal Office (nothing of the sort) issued projections that cast fear, uncertainty and doubt that the state’s annual impact fee, which is really just another form of severance tax, will decrease this year (see our companion story today). In making their scary prediction, the IFO quotes several statistics about PA drilling as it stands so far in 2015 that MDN found enlightening (and we think you will too). Note: We’re not saying the IFO’s stats are wrong, we’re saying their conclusions are (with respect to a severance tax). The IFO-quoted stats tell us how much new well drilling is down (so far) in 2015, how many wells have been drilled but not completed, and how many drilled/completed wells have been turned off (“shut-in”)…
    Read More “Snapshot of 2015 PA Marcellus Activity So Far – Numbers are Down”

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    Fracsandphobia for Some Who Live Near Keystone Sanitary Landfill

    People are phobic (fearful) of the darnedest things. Some people are afraid of germs (germophobia). Some are afraid of spiders (arachnophobia). Some are even afraid of furry little kitty cats (ailurophobia). Seems that all of us have one phobia or another. Some folks who live near the Keystone Sanitary Landfill outside of Scranton, PA have a phobia over sand that may be hauled to the facility (an irrational fear of sand is eremikophobia). Because Keystone accepts drill cuttings and has, in the past, also been permitted to accept frac sand waste from drilling operations, some people who live in the area are afraid. Of what? That the sand may contain nasty fracking chemical residue and that residue will leach out of the ground and enter their bodies–ahhhhhh! Never mind that the residue in frac sand waste, chemicals like hydrochloric acid, is in such minuscule quantities it’s the equivalent of the amount of hydrochloric acid found in eye drops (yes, eye drops). But facts never get in the way of a good phobia–or a good lie spun by the likes of anti-drilling groups like Food & Water Watch that exist to stop legal, legitimate and safe businesses in the United States from operating…
    Read More “Fracsandphobia for Some Who Live Near Keystone Sanitary Landfill”

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    Primoris Scores $10M Pipeline Contract in Susquehanna County, PA

    Primoris Services Corporation, a pipeline building company based in Dallas, TX, announced today they’ve landed a contract to build 6.8 miles of 16” diameter natural gas pipeline in Susquehanna County, PA. They’ll pick up a tidy $10 million for their efforts. Although Primoris doesn’t name the “midstream customer” in the announcement, it’s almost certainly Williams. While there are several smaller players in Susquehanna County when it comes to midstream and pipelines, Williams is pretty much the dominant force in that area and the only midstreamer we’re aware of that’s building anything right now…
    Read More “Primoris Scores $10M Pipeline Contract in Susquehanna County, PA”

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    Anti-Drilling PennFuture Gets New President to Replace Cindy Dunn

    Since most of the staff from one of Pennsylvania’s biggest anti-drilling groups, PennFuture, has moved to Harrisburg to work in the Gov. Tom Wolf administration (often referred to as the PennFuture administration around the halls of the Capitol), it’s time to appoint a new anti-driller to head the remaining husk of the organization left behind. John Quigley, now Secretary of the Dept. of Environmental Protection used to work for PennFuture. So did John Hanger, Wolf’s Secretary of Planning and Policy. Cindy Dunn, the current Secretary of the Dept. of Conservation and Natural Resources was, until she moved to DCNR, the head of PennFuture. Her departure left a hole that has now been filled by another trusted anti-driller, Larry Schweiger, someone with enviro street cred who worked for the National Wildlife Organization, Chesapeake Bay Foundation, Western Pennsylvania Conservancy, and the partisan environmental committee of the Pennsylvania General Assembly. He’s also good with a Kodak camera–snapping pictures of the BP oil spill in the Gulf (before all of the oil disappeared three weeks after the leak was fixed)…
    Read More “Anti-Drilling PennFuture Gets New President to Replace Cindy Dunn”

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    3rd SRBC Report: Marcellus Drilling Doesn’t Affect Water Quality

    The Susquehanna River Basin Commission (SRBC), charged with protecting and managing the water resources in the Susquehanna River Basin, continues to perform its duty with distinction (unlike another commission with a similar name nearby that fails miserably to perform its duties). In 2010 the SRBC began collecting the data through a state-of-the-art Remote Water Quality Monitoring Network (RWQMN). Part of the remit in that effort is to determine whether or not Marcellus Shale drilling is having an effect on the quality of water in rivers and streams in the SRBC region. Two prior reports issued by the SRBC had shown no impact on the water quality of rivers and streams from drilling. Last week the SRBC delivered its third such report (full copy below). It is the most comprehensive study to date, covering data collected from 2010-2013. And guess what? The new report shows that Marcellus Shale drilling has not impacted local rivers and streams. Period. End of story. So now we have both the federal government, via the EPA, saying fracking doesn’t harm water supplies, and the SRBC saying the same thing. And the politicians in New York State ban fracking because of “maybes” and “mights” and “possibles”–all while real data from real drilling shows shale drilling does not harm the environment–not in the way claimed by NY political charlatans. Here’s what the SRBC said in releasing their latest report on water quality in the Marcellus region…
    Read More “3rd SRBC Report: Marcellus Drilling Doesn’t Affect Water Quality”

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    Chesapeake Energy’s Theft of PA Landowner’s Royalties

    It’s no wonder Pennsylvania landowners are up in arms over their treatment by Chesapeake Energy. Two weeks ago MDN told you about a new bill, HB 1391, that will ensure Pennsylvania landowners receive a minimum 12.5% in royalties for any gas or oil taken from their land (see New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties). The reason such a bill is necessary is because landowners are being robbed by some (not all) drillers who are deducting certain “post production” expenses from royalty checks–essentially stealing money that belongs to landowners. Here is a perfect example from Bradford County, PA–the most drilled Marcellus county in the state…
    Read More “Chesapeake Energy’s Theft of PA Landowner’s Royalties”

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    “Researchers” Take to the Sky to Locate Marcellus Methane Leaks

    Tower: “Global Warming Nutjob One–you’re cleared for takeoff on runway three.” GWNO: “Roger. Global Warming Nutjob One is taxiing and will takeoff from runway three. Have a nice, carbon-free day Tower.” Tower: “Er, thanks, we think.” As the Twin Otter airplane takes off into the sunrise, it burns copious amounts of fossil fuels and belches carbon like a dragon as it heads off to monitor whether a teeny tiny amount of methane (natural gas) is leaking from Marcellus Shale drilling sites. Anyone else see the irony here? The Philadelphia Inquirer has written an (article? propaganda piece? promotional advertisement?) about a “research” project under way between Penn State, University of Colorado and the National Oceanic and Atmospheric Administration (NOAA) to fly over Marcellus Shale drill sites in Pennsylvania to see if they can catch drillers in the act of leaking methane…
    Read More ““Researchers” Take to the Sky to Locate Marcellus Methane Leaks”

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    Alpha Natural Res. Expands in Marcellus, Drilling Begins in 30d

    Aaannnd, we're backCoal company Alpha Natural Resources is expanding their operation in the Marcellus Shale natural gas business. Yesterday Alpha announced its wholly-owned subsidiary, Pennsylvania Services Corporation (PSC), has purchased back a 50% interest in its natural gas exploration and production joint venture, Pennsylvania Land Resources Holding Company (PLR) from joint venture partner EDF Trading Resources (EDFTR) for $126 million. Alpha’s PSC subsidiary now becomes the the sole owner and operator of the PLR joint venture (which is no longer joint). Lots of acronyms of subsidiaries owning subsidiaries! Bottom line: Alpha can now control and expand a highly economic natural gas development program with 25,000+ net acres AND associated infrastructure–in the Marcellus Shale. Alpha’s EVP Brian Sullivan says they plan to begin drilling in their Marcellus acreage position (in Greene County, PA) in the next 30 days…
    Read More “Alpha Natural Res. Expands in Marcellus, Drilling Begins in 30d”

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    PA Court Decision: Leases Don’t Go on Pause When Landowners Sue

    Put on your hip boots, we have some deep waters to wade through with respect to an important court decision in Pennsylvania that affects landowners and drillers. Last October MDN told you about an important lawsuit that went to the Pennsylvania Supreme Court, a case called Harrison v Cabot Oil & Gas (see Important Landowner/Driller Case Heads to PA Supreme Court). In brief, Susquehanna County, PA landowners Wayne and Mary Harrison signed a lease with Cabot Oil & Gas for $100 per acre and 12.5% royalties in 2010. Learning that others in their area got better deals and feeling they were not only hoodwinked but pressured into signing, they sued Cabot halfway through the lease (before any drilling was done) to dissolve the lease. Ultimately that lawsuit was decided in favor of Cabot. But by the time the lawsuit was done and dusted, the original 5-year term had expired without Cabot drilling. The Harrisons claimed since Cabot hadn’t drilled, the lease is now over with. Cabot said the lease went on “pause” when the Harrison’s sued–you can’t very well drill with an active lawsuit. This “lease on pause” case was appealed all the way to the Supreme Court in PA, and in February the Supreme Court ruled that just because there is ongoing litigation, Cabot didn’t have the presumption that the lease was paused (see Cabot O&G Loses PA Supreme Court Case to Extend Lease). That is, Cabot lost the case. But it was referred back to the Third Circuit Court of Appeals for more work before a final final ruling. We now have that final final ruling…
    Read More “PA Court Decision: Leases Don’t Go on Pause When Landowners Sue”

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    Shell Greenlights Offshore Platform – Good Sign for PA Cracker?

    reading tea leavesTime, once again, to haul out the tea leaves to see if there’s anything we can divine from an announcement yesterday by Shell that they’ve made a “final investment decision” (or FID) to move forward with a multi-billion dollar project to build a new deep-water offshore drilling platform in the Gulf of Mexico. What in the world does that have to do with the Marcellus/Utica? Good question! Let us read the tea leaves and connect some dots for you…
    Read More “Shell Greenlights Offshore Platform – Good Sign for PA Cracker?”

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    Guest Post: The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal

    MDN friend Charlie Schliebs, managing director of Stone Pier Capital Advisors in Pittsburgh, sent along a copy of his firm’s latest newsletter yesterday. In it, Charlie has penned a superb article about the PA Gov. Tom Wolf administration’s current disaster with respect to the state budget (and Wolf’s demand for a high severance tax). As MDN reported yesterday, Wolf did something no governor has done for 40 years–he vetoed the entire budget (see PA’s Partisan Gov Wolf Vetoes No-Severance-Tax State Budget). Let’s put Wolf’s veto in perspective. He turned down, wholesale, a balanced budget that raises education funding (for the chil’ren) all while holding the line on tax increases. Instead, Wolf chose to shut down the PA state government. Why? Because he wants a nosebleed high tax on Marcellus Shale drillers to transfer their hard-earned money over to teachers’ unions. It’s sick. Charlie is more of a diplomat than we are and uses nicer words, but make no mistake, he has an iron fist in his velvet editorial glove when it comes to “The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal”…
    Read More “Guest Post: The Political Disaster that is Gov. Wolf’s PA Severance Tax Proposal”

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    PA’s Partisan Gov Wolf Vetoes No-Severance-Tax State Budget

    Proving just how partisan (and mean spirited) the Democrats in Pennsylvania have become, every single Democrat senator voted against a Republican balanced budget bill yesterday (highly partisan, those Dems) and when the bill went to Gov. Tom “in over his head” Wolf, Wolf immediately vetoed the budget bill–the first time a sitting governor has vetoed an entire budget bill in 40 years. Tell us again, John Hanger, whose philosophy is “my way or the highway”? It’s certainly not the Republicans’ philosophy. Wolf and the Dems are playing a high stakes game of “chicken.” They are in the minority in PA and they want to see if they can bully, pressure, and otherwise force Republicans to tax the Marcellus Shale industry out of existence in the state. The Republicans, to their credit, are hanging tough. Unfortunately the Republicans don’t have enough of a majority to simply override Wolf’s childish veto–but give it time. Sooner or later, if they hang tough, some Democrats will cave and vote to override the veto…
    Read More “PA’s Partisan Gov Wolf Vetoes No-Severance-Tax State Budget”

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    New EIA Monthly Report Breaks Out Natgas Production by PA/OH/WV

    Our favorite government agency, the U.S. Energy Information Administration (EIA), has just replaced a previous monthly report with a new report that will be of keen interest to MDN readers. It used to be that the EIA produced the Monthly Natural Gas Gross Production Report. That report is no more. Instead, it has been replaced by the Monthly Crude Oil and Natural Gas Production report. The old report tracked and reported natgas production by state/region for LA, NM, OK, TX, WY and the Federal Gulf of Mexico. Those locations were, traditionally, where the vast majority of natural gas was produced in the U.S. But with the shale revolution, that’s now changed–dramatically. In addition to reporting monthly natgas production by state for the traditional locations, the EIA is adding 10 new states to the monthly report: AR, CA, CO, KS, MT, ND, OH, PA, UT and WV. Yep–where the super producing shale plays are located, including PA, OH and WV where the Marcellus/Utica is located. What’s the difference between this new report (which we’ve included below) and the monthly Drilling Productivity Report (DPR) produced by the EIA?…
    Read More “New EIA Monthly Report Breaks Out Natgas Production by PA/OH/WV”

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    MDN Interprets NEPA Editorial on Coal, Natgas, Electric Generation

    Sometimes you need a plain language guide to help you decipher the gobbledygook editorials issued by liberal newspapers. It’s like, what do they really mean? What are they trying to say? Why don’t they just use plain English to say what they mean? We spotted such an editorial in the Scranton Times-Tribune with respect to coal, natural gas, electric generation and so-called alternative energy sources, like wind. Below we’ve interpreted what the editorial writers really wanted to say in their otherwise indecipherable editorial…
    Read More “MDN Interprets NEPA Editorial on Coal, Natgas, Electric Generation”