Pennsylvania

Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA | Taxation | Washington County

The Tax Man Returneth — for PA Landowners with Royalties
January 27, 2015January 27, 2015

Landowners who get royalty checks in Pennsylvania beware: the PA tax man may be coming for you. It’s a shame, but landowners who get royalty checks have to employ a bevy of accountants and tax experts in order to file a tax return. Such is life. One of the deductions landowners take from their royalty checks are for production costs. On paper, a landowner may be paid 14% in royalties, but in actuality it works out to be much less. Landowners have to navigate sometimes confusing statements from drillers to put the right numbers in the right boxes. What’s happening now is that the PA Dept. of Revenue is telling some landowners the numbers in the boxes don’t add up–according to their convoluted calculations anyway. And PA wants some of that money back they say should have been paid to them all along. It’s a confusing mess…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684
January 27, 2015January 27, 2015

MDN has written plenty about Pennsylvania’s HB 1684–the Guaranteed Minimum Royalty Act (see these MDN articles). In essence, some companies (cough *Chesapeake Energy* cough) have gotten creative with deducting post-production costs from royalty checks. According to the PA Guaranteed Minimum Royalty Act of 1979, royalty owners (landowners) must receive no less than 1/8, or 12.5%, by law. But when Chessy and others start deducting this and that, never spelled out in the original lease agreement, landowners are getting the shaft–way lower than 12.5%. In some cases they get royalty checks for a few dollars! Bradford County landowner John Williams is concerned, both about HB 1684 and newly elected Gov. Tom Wolf’s stand on that bill, and about Wolf’s proposed 5% severance tax. Will the severance tax be the next deduction gas companies take, further reducing royalty checks? Is the severance tax Tom Wolf proposes a tax that will be paid, in essence, by landowners? We thank John for his guest post…
Read More “Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684”
Commodity Price | Industrywide Issues | Pennsylvania | Statewide PA

MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly”
January 26, 2015January 26, 2015

What’s the prognosis for new drilling activity in the Marcellus Shale? Two industry leaders gave a sobering assessment to the Philadelphia Inquirer. Dave Spigelmyer, president of the Marcellus Shale Coalition (MSC) and Lou D’Amico, president of the Pennsylvania Independent Oil and Gas Association (PIOGA) spoke frankly about where drilling is scaling back (more so in the wet gas areas than the dry gas areas, but dry gas still affected too), and when the outlook is likely to improve (not any time soon)…
Read More “MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly””
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Drillers Take Aim at Pat Henderson’s Move from Govt to MSC
January 26, 2015January 26, 2015

A new hit piece from the drive-by Democrat propagandists known as PBS StateImpact Pennsylvania. Patrick Henderson, formerly PA Gov. Tom Corbett’s Energy Executive, has had the unmitigated gall to land on his feet in a new job–now gainfully employed by the Marcellus Shale Coalition as its Director of Regulatory Affairs. StateImpact is dutifully reporting the Democrat talking points that this “proves” the Corbett administration was in bed with drillers all along. Meanwhile, John Quigley once worked for Ed Rendell and later went to work for Big Environment–an anti-drilling group known as PennFuture–after he left being Secretary of the Dept. of Natural Resources in PA. But not a peep from StateImpact on how that “proves” the Rendell administration was in bed with anti-frackers. Quigley has just been recycled by Tom Wolf (Wolf’s administration increasingly looks like the third term of the Rendell administration) to head the Dept. of Environmental Protection (DEP). No speculation from StateImpact about how Quigley may be “in bed” with the enviros as he assumes his vital-to-the-Marcellus-industry post at the DEP. Nope. Just another day slavishly regurgitating the Dem talking points…
Read More “Anti-Drillers Take Aim at Pat Henderson’s Move from Govt to MSC”
Allegheny County | Chevron | Energy Companies | Industrywide Issues | Jobs | Pennsylvania

Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh
January 23, 2015January 23, 2015

Well, don’t say we didn’t warn you. In November MDN brought you the news that Chevron announced the are “restructuring” their northeast business until to “become more efficient” and for “long-term growth.” We pointed out at the time that kind of language doesn’t inspire confidence (see Chevron Scaling Back in the Marcellus/Utica? Maybe). We also said it was a good sign that no WARN Act notices of impending large layoffs had been issued. Oops. That’s now changed. In an emailed statement yesterday, Chevron said it plans to lay off 162 Pennsylvania workers as part of their “restructuring”–nearly a quarter of their Marcellus workforce. Ouch. It wasn’t so long ago Chevron was planning to build a massive, new 350,000 square foot regional headquarters near Pittsburgh (see Chevron Puts Moon Twp, PA Office Building Project on Hold). It seems that project is now dead–no signs of life. Here’s the disappointing info on Chevron’s coming round of layoffs…
Read More “Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh”
Air Quality | Industrywide Issues | Pennsylvania | Regulation | Research | Sand/Proppant | Wyoming County (PA)

DEP Begins Air Study Near Proposed Frac Sand Facility in NEPA
January 23, 2015January 23, 2015

For some time, MDN has followed the developing story in rural Tunkhannock, PA (Wyoming County) where D&I Silica, now owned by Hi-Crush Partners, wants to build a frac sand transfer station along a rail line. D&I lacked only one thing before they could begin construction–a permit from the county. Residents in the area are concerned that the silica, or frac sand, will become airborne and create health issues–so the county resisted in granting the permit. D&I took the county to court and the case was settled last November, allowing D&I to move forward. However, the county wanted to conduct an air quality study. The state Dept. of Environmental Protection said they would conduct an air quality study, but the county a private, third party company to do the study (see Deuling Air Quality Studies for NEPA Frac Sand Transfer Station). Once the county found out the air quality study would cost them $130,000, they decided the DEP’s study will do just fine, thank you very much. The county decided to pay $7,500 instead to have their independent, third party consultant review the study done by the DEP. Yesterday the DEP showed up and started to set up equipment for the study…
Read More “DEP Begins Air Study Near Proposed Frac Sand Facility in NEPA”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Luzerne County | Pennsylvania

NEPA Anti-Drilling Group Holds Press Conf to Celebrate Court Settlement
January 23, 2015January 23, 2015

On Monday, MDN told you about the resolution of a case in involving a northeast Pennsylvania anti-drilling group, Gas Drilling Awareness Coalition, or GDAC (see NEPA Anti Group Wins Lawsuit, Dropped from Terrorist Watch List). GDAC was placed on a state terrorist watch list in 2010. GDAC says they are peaceful and have never broken any laws in their efforts to stop Marcellus Shale drilling in the Keystone State. GDAC sued the PA Dept. of Homeland Security over the matter and last week the two sides settled the federal lawsuit. Terms of the settlement are private and not disclosed by request of the state, which says to us GDAC probably got money out of it. If taxpayer money has gone to settle the case, why don’t we have the right to know how much? Yesterday GDAC and their attorney held a press conference to discuss the settlement of the case…
Read More “NEPA Anti-Drilling Group Holds Press Conf to Celebrate Court Settlement”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Northampton County | PennEast Pipeline | Pennsylvania | Pipelines

SEPA Towns Manipulated by Big Enviro Groups to Oppose PennEast
January 23, 2015January 23, 2015

You might think, in casually reading the local newspaper in southeast Pennsylvania, that all of your neighbors have spontaneously risen up to oppose an evil, nasty, money-grubbing pipeline called the PennEast. Your neighbors are concerned about safety–and YOU should be too! There’s just one teeny tiny problem–national anti-drilling groups are behind this “spontaneous” uprising. Groups like the Sierra Clubbers, and the odious and misnamed Food & Water Watch (FWW), which is not an impartial group that’s “advocating for clean water and safe food.” FWW are virulent anti-drillers who oppose fossil fuels of any kind and are well-organized and flush with Big Enviro money. FWW descends on small towns–places like Lower Saucon Township in Northampton County, PA (population 9,884)–and they hoodwink local political leaders into believing that the pipeline is evil. So a resolution gets passed by the town board opposing it. Voila, “everyone” is against it. Orgasmic joy sweeps over Food & Water Watch HQ. On to the next town…
Read More “SEPA Towns Manipulated by Big Enviro Groups to Oppose PennEast”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Anti Group Asks PA Court for a Do-Over on State Land Drilling Decision
January 23, 2015January 23, 2015

Earlier this month we reported the crushing defeat of the litigious anti-drilling group Pennsylvania Environmental Defense Foundation (PEDF) in their lawsuit that attempts to stop all drilling and leasing of state-owned lands for oil and gas drilling (see PA Court Rules to Allow More Leasing/Drilling of State-Owned Land). Even though it was a victory for pro-drillers, it was a “dirty” win because it relied on and reinforced the flawed PA Supreme Court “Robinson” case on Act 13 zoning (see Troubling Win in PA Court Victory that Allows State Land Drilling). The litigious PEDF is back to take yet another bite at the apple. They’ve filed an “Application for Reargument” in the case. They want the judge to call a “do-over” so they can try, once again, to ban drilling on state-owned land…
Read More “Anti Group Asks PA Court for a Do-Over on State Land Drilling Decision”
Erie County | Housing | Industrywide Issues | Pennsylvania

Quirky Friday: What’s the Main Selling Point of Erie, PA Trailer Park?
January 23, 2015January 23, 2015

It’s Friday and sometimes the impending weekend puts us in a quirky mood. And then we notice something that strikes us as quirky or interesting–and we pass it along. Such is the case with this story. UMH Properties, Inc. is a real estate investment trust (REIT) that owns and operates manufactured home communities in seven states throughout the northeast–trailer parks and modular home communities. UMH issued a press release yesterday to crow about buying yet another trailer park in Erie, PA for $3.8 million. Stick with us, there is a point. The main advantage/reason that UMH purchased this particular trailer park to add to their growing portfolio? It’s located in the Marcellus/Utica region, and because it’s located in prime shale country, they figure occupancy rates will remain high…
Read More “Quirky Friday: What’s the Main Selling Point of Erie, PA Trailer Park?”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA Senate Reintroduces Two Marcellus Royalty Bills, SB 147 & 148
January 22, 2015January 22, 2015

The “funny business” of shorting royalty checks in Pennsylvania–particularly by Chesapeake Energy–may soon come to an end. A pair of bills that didn’t make it past the House last session have been re-introduced in the Senate and both have already passed the Senate Environmental Resources and Energy Committee unanimously. State Sen. Gene Yaw, Republican from northeast Pennsylvania, re-introduced Senate Bills (SB) 147 & 148. SB 147 allows landowners the right to review drilling company records to verify proper royalty payment. It also requires drillers to pay royalties within 90 days of production. SB 148 prohibits drillers from “retaliating” against a landowner who questions royalty payments by canceling the lease or stopping drilling activity. Both bills are embraced by the Pennsylvania chapter of the National Association of Royalty Owners (NARO)…
Read More “PA Senate Reintroduces Two Marcellus Royalty Bills, SB 147 & 148”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Important Expose on John Quigley, Nominee to Head PA DEP
January 22, 2015January 22, 2015
MDN friend Tom Shepstone, who writes the excellent Natural Gas Now blog site, has just posted a must-read article on John Quigley, PA Gov. Tom Wolf’s choice to lead the Dept. of Environmental Protection. Tom does some real investigative journalism–something you won’t read in the Harrisburg Patriot-News, the Philadelphia Inquirer, or Democrat Party satellite publications like StateImpact Pennsylvania. You certainly won’t read anything detailed about Quigley in the Scranton Times-Tribune! Real investigative journalism has gone out of vogue in those publications. But not with Tom. Rather than copy his excellent work here, we’ll ask you to click on the link below and take time to educate yourself on the “real” John Quigley.
- Natural Gas Now/Tom Shepstone (Jan 21, 2015) – Will the Real John Quigley Please Stand Up?
Butler County | Energy Companies | Pennsylvania | Rex Energy

Rex Energy: Production Up 66% in 2014, New Drilling Area in 2015
January 21, 2015January 21, 2015

Rex Energy, the little energy company that could (and does) successfully drill in the Marcellus and Utica Shale, announced in December that they would reduce their drilling budget in the Marcellus by 44% in 2015 (see Rex Energy Reduces 2015 Marcellus/Utica Drilling Budget by 44%). Yesterday the company released an operational update for 2014 that shows production was up 66% in 2014 over 2013 numbers. Fourth quarter production numbers were up 15% over third quarter. In addition, Rex has begun drilling a series of Marcellus wells in a new area of Butler County, what they call the Moraine East Area. They plan to drill drill 10 to 16 wells in the Moraine East Area and complete 4 to 10 wells in 2015. Here’s the rundown from Rex for what happened in 2014, and what they intend to do in 2015…
Read More “Rex Energy: Production Up 66% in 2014, New Drilling Area in 2015”
Anti-Drilling/Fossil Fuel | Dauphin County | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Fracking Protesters Spoil PA Governor Inauguration Ceremony
January 21, 2015January 21, 2015

Yesterday, Democrat anti-drilling protesters spoiled the inauguration of one of their own–Pennsylvania Gov. Tom Wolf (Democrat, wants to tax the shale drilling industry into oblivion). There were “more than 100” very loud demonstrators outside of the inauguration according to the AP, which in partisan liberal math translates into “several hundred” protesters for PBS’s StateImpact Pennsylvania. Eight of these ill-behaved children adults were were so loud and obnoxious Pennsylvania State Police arrested and removed them. Two of them stood up during the inauguration speech hollering “ban fracking now” and were removed by State Police. The “ban fracking now” chant could be heard throughout the inauguration–spoiling the ceremony for everyone. According to those who organized this shameful performance, they were emboldened by New York’s recent ban–hoping if they can make enough noise and throw enough temper tantrums, they’ll get PA to ban it too. (Hey, it worked for them when they were children, why wouldn’t it work now?)…
Read More “Anti-Fracking Protesters Spoil PA Governor Inauguration Ceremony”
Pennsylvania | Statewide PA | Statewide WV | West Virginia

WV Gov Earl Ray Tomblin Praises Marcellus Shale During Speech
January 21, 2015January 21, 2015

At Pennsylvania Gov. Tom Wolf’s inauguration yesterday, Wolf didn’t even mention the word “Marcellus” and said nothing of shale drilling in the state beyond a vague statement about the state being “blessed with an abundance of natural resources” which includes “gas.” Compare Wolf’s total lack of acknowledgement of the Marcellus and the key role it plays in Pennsylvania with the West Virginia Gov. Earl Ray Tomblin’s State of the State speech last week, a speech in which he positively gushes about the Marcellus, by name. Tomblin even treats two representatives from Southwestern Energy present in the audience as exalted guests, asking them to stand for applause (Southwestern has just invested $5 billion in WV). The kicker: both governors are Democrats. In part, here’s what Tomblin said last week in his annual speech to the state:
Read More “WV Gov Earl Ray Tomblin Praises Marcellus Shale During Speech”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

In His Own Words: Quigley’s Positions on Fracking, NY Ban, Etc.
January 20, 2015January 20, 2015

MDN has done some more digging on Pennsylvania Gov. Tom Wolf’s choice to run the all-important (for Marcellus Shale drilling) Dept. of Environmental Protection (DEP), John Quigley. As it turns out, we didn’t have to dig very far. Quigley himself writes a blog site called “John Quigley’s A Green Thing blog.” The name about says it all. We went looking through his previous statements and found more that concerns us about his impending stewardship of the greatest economic miracle to hit PA in more than 100 years. One of the things Quigley repeatedly lobbies for is a rapid transition from water-based fracking to waterless fracking, something that isn’t remotely possible in the next 10 years…
Read More “In His Own Words: Quigley’s Positions on Fracking, NY Ban, Etc.”