Pennsylvania

Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

CBS Philly Manufactures False Story about Marcellus Freight Trains
March 5, 2015March 5, 2015

Is it a case of yellow journalism? Anti-drilling conspiracy? Or is it the case of an ignorant editor at a major Philadelphia news outlet? Take your pick. We’re referring to the headline and accompanying picture (see below) that are 100% false. The headline says, “Local Environmental Groups Warn of Accident Potential From Marcellus Shale Freight Trains” and shows a picture of a train derailment from three years ago that has nothing to do with shale oil. That’s called manufactured news folks. It’s also called a lie. And it appears boldly on the website of Philadelphia’s CBS News affiliate (channeling the lying Dan Rather are we?). The article refers to a new propaganda piece issued by Penn Environment and Frac Tracker Alliance–both strongly anti-drilling organizations. The “report” issued is a “boy who cried wolf” missive that warns PA residents of oil trains passing through the state, coming from the North Dakota Bakken Shale, with scary stories of exploding trains because of shale oil. And therein is the egregious lie–not only is the picture false (nothing to do with Bakken oil or oil of any kind), the headline is false–THERE ARE NO MARCELLUS OIL TRAINS. Any oil or condensate or natural gas liquids in the Marcellus region are transported by pipelines–not rail cars…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Gov Wolf Increases DRBC Funding by 73% to 3/4 Million Bucks
March 5, 2015March 5, 2015

On Tuesday, PA Gov. Tom Wolf delivered the most expensive budget in PA history, a budget that plans to steal money from landowners and drillers and give it away to Big Education (see Post-Gazette: Wolf Budget with Severance Tax “a Miss…Utter Folly”). Not only does Tom Wolf want to “restore funding” for Big Education, he also, disappointingly, intends to restore funding for the Delaware River Basin Commission (DRBC) so it can continue its anti-drilling ways. Wolf wants to lavish the DRBC with 3/4 of a million dollars, which is a 73% increase over last year’s funding under then-Gov. Tom Corbett. The problem with funding the DRBC is that PA taxpayers are footing most of the bill because other member states, including NY, NJ and the federal government, are short-changing the DRBC–not paying what they owe. Delaware is the lone member that pays what it’s supposed to (which is much less than PA). So PA taxpayers are in the unenviable position of propping up an organization that acts against their interests…
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Cleveland Fed Finds PA Natgas Production Up 1000% from 2009-2014
March 5, 2015March 5, 2015

Earlier this week the Federal Reserve Bank of Cleveland published a paper titled “Trends in Energy Production and Prices” (full copy below). In the paper, Cleveland Fed researchers examine national and Fourth District (KY, OH, WV, PA) trends in energy production and prices. What did they find? OH and WV doubled their natural gas production from 2009 to 2014. However, production in PA went up 1000% during that time, thanks to the Mighty Marcellus. Because of shale gas, energy prices are generally down across the region. Coal production is also on the decline in the northeast…
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Housing | Industrywide Issues | Pennsylvania | Research | Statewide PA

New Report: Housing and Marcellus Shale Development in PA
March 5, 2015March 5, 2015

The Center for Rural Pennsylvania, a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly, continues to pump out the reports on the Marcellus Shale and its impacts on the state. In January, the Center published their third report in the Marcellus series (see New Report: Marcellus Shale Drilling’s Impact on PA Schools). In February, they issued their fourth report (see Report: PA’s Youth Not Impressed with Marcellus Industry). In March? Yep–a fifth report. This one is titled “Housing and Marcellus Shale Development” (full copy below). This study takes a look at how you house all those Marcellus workers when they show up to start drilling–and does it affect rent prices?…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Post-Gazette: Wolf Budget with Severance Tax “a Miss…Utter Folly”
March 4, 2015March 4, 2015

Using the same class warfare language all Democrats resort to when they want to justify their enormous appetite for taxing and spending, yesterday Pennsylvania Gov. Tom Wolf introduced the highest-ever budget in PA and attempted to lay a huge theft, in the form of a so-called severance tax, on the Marcellus industry by saying, “We deserve to be fairly compensated for the use of our resources.” Just one problem Tom: IT’S NOT YOUR RESOURCES! The resources in question belong to private landowners and your proposal to steal their money, along with the money of the drillers who risk a lot of capital to drill, is abhorrent. The justification is that the money stolen will be given “to the children”–by which he means given to teachers’ unions who turned out the vote for him. The Wolf budget landed yesterday–with a thud–and it calls for $1 billion in taxes on the Marcellus industry. Wolf thinks he can get buy-in by ensuring $225 million of that amount will be kept local, like the old “impact fee.” That’s the payoff to try and get support for this Marcellus-killing budget. He plans to fork over the rest of it to Big Education as their reward for voting for him. Even the Pittsburgh Post-Gazette calls his budget “a miss” and “utter folly.” Can you believe that? It’s so bad even the anti-drilling editors at the Post-Gazette don’t like it…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

More Troubling Remarks by Wolf’s Acting DEP Sec. John Quigley
March 4, 2015March 4, 2015

PA Gov. Tom Wolf’s Acting Secretary of the Dept. of Environmental Protection (DEP), John Quigley, is increasingly bold in his pronouncements about the Marcellus industry, which is deeply troubling. He did, after all, once work for and advocate for the anti-drilling PennFuture (see Ripping the Mask off PennFuture & It’s Former Employees). In reading an article where Quigley is quoted, we’re somewhat alarmed at his increasing boldness in trash-talking the Marcellus industry…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Sen. Joe Scarnati Admits Impact Fee is Really a Tax
March 4, 2015March 4, 2015

In all of the coverage of PA Gov. Wolf’s ill-fated budget–the highest ever for the state of Pennsylvania–we spotted one comment that validates what we’ve been saying for more than two years: The Act 13 “impact fee” is really just a tax. In fairness, it’s 60% fee and 40% tax because 60% of it stays in the communities where drilling happens to reimburse them for things like improving roads, extra law enforcement personnel and beefing up local fire departments. The 40% portion disappears into the black hole of Harrisburg–into greasy politicians’ fingers. In February 2012 MDN pointed out the so-called impact fee is really just a tax (see PA’s New Tax on Drilling (er Sorry, Impact Fee)). The chief architect of the impact fee, State Sen. Joe Scarnati (Republican from Jefferson) finally admitted it yesterday. He blamed Gov. Tom Corbett for not wanting to call the impact fee what it really is–a tax–and he said so to the Philadelphia Inquirer…
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Housing | Industrywide Issues | Litigation | Pennsylvania | Washington County

Prejudice in Washington, PA – Judge Says No Marcellus Boarding House
March 3, 2015March 3, 2015

Discrimination and prejudice have finally won in Washington, PA–and a dilapidated eyesore will continue to exist because of it. We’re speaking about plans to renovate a former, run-down convent into a boarding house for Marcellus Shale workers in Washington, PA. We’ve previously chronicled City Council’s opposition to the project (see Washington, PA Votes to Reject Marcellus Boarding House). We’ve also chronicled the shameful opposition of Rev. William Feeney and the Immaculate Conception church across the street from their denomination’s abandoned convent–opposed to the plan because it might attract “transients” to the neighborhood (see Marcellus Prejudice on Display at Washington, PA Church). The reverend and parishioners may want to re-read Matthew 25:31-40. The developer looking to create Marcellus housing at the old convent, Robert Starr, took the matter to court. Yesterday he lost…
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Pennsylvania | Potter County | Utica Shale

Dr. Terry Engelder Says Utica the Best Bet in Potter County, PA
March 3, 2015March 3, 2015

At a recent meeting in Coudersport (Potter County), PA, Dr. Terry Engelder of the Dept. of Geosciences at Penn State University and one of the leading experts on the Marcellus spoke to a packed room of more than 100 people about the Marcellus, the Utica, and the prospects for drilling in Potter County. Engelder said Potter County’s best bet is likely the Utica Shale layer…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Dramatic Budget Cutbacks in Marcellus Budgets for 2015
March 3, 2015March 3, 2015

It’s not an understatement to say that drillers in Pennsylvania are in a fight for their very existence. Socialist Gov. Tom Wolf has convinced a great many PA residents in the state that it’s perfectly fine to steal money from drillers and landowners and redistribute it to Big Education. What Wolf and those who blindly follow him don’t realize is that Wolf’s nosebleed severance tax is the equivalent of a butcher knife to the neck of the goose laying Marcellus golden eggs–those eggs being jobs and current tax revenue. If Wolf & company pull the trigger on the tax, it will be catastrophic for the drilling industry in the state. Drilling is already decreasing–by huge numbers. Capital budgets for 2015 have been slashed–typically in one-third to one-half of 2014 levels. New drilling may all but stop with such a new tax–denying the tax and spend Democrats the revenue they seek “for the children.” What will they do then? The Marcellus Shale Coalition is blowing the trumpet to warn people of the coming train wreck that is Tom Wolf’s severance tax. One of the ways they are doing it is with an emailed newsletter called Marcellus Moments. Yesterday’s edition contains an excellent table showing Marcellus drillers and how much they’ve announced they are cutting back on their capital budgets for 2015. When you see it table form (below), it’s rather shocking. Do the Dems really think drillers will just keep on drilling when their already-squeezed profits disappear into a socialist tax black hole? Although the Marcellus is the biggest, it’s not the only shale play around. Rigs can be moved…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Taxation

Beaver County Officials Don’t Think Wolf’s Tax Will Kill Shell Cracker
March 3, 2015March 3, 2015

Let’s do some simple arithmetic and use some basic logic. If you drill less Marcellus and Utica Shale wells, you get less natural gas and gas liquids–like ethane. If you have less ethane, and if there’s already several pipelines flowing that lesser amount of ethane out of the region, you don’t have much left over to feed a big ethane cracker plant–like the one Shell is considering for Beaver County, PA. Make sense? It does to PA’s new Senate Majority Leader, Jake Corman, who said a proposed severance tax–that would cause drilling to drastically be scaled back–may kill the Shell project (see New PA Senate Leader Says Severance Tax Could Kill Cracker Plant). Although Democrats like PA Gov. Tom Wolf don’t like the fact that actions (and not good intentions) have consequences, they do. And a severance tax will drastically reduce the number of new Marcellus wells drilled in the state, and cause a decrease in the amount of ethane being extracted. Local business and political leaders in Beaver County don’t quite see it that way though…
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Industrywide Issues | Pennsylvania | Public Opinion | Statewide PA | Taxation

Majority of PA Voters DON’T Support a New Severance Tax Right Now
March 2, 2015March 2, 2015

The results of a recent poll conducted of PA voters, paid for by the Marcellus Shale Coalition, is (in our opinion) being misreported. The headlines, which all seem to quote a single story in the Pittsburgh Tribune-Review, claim that a “majority” of PA voters support slapping a new tax on shale drillers. That’s not how we read the results…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Wastewater

CSSD Expands Certification Standard to Include Wastewater Disposal
March 2, 2015March 2, 2015

The Center for Sustainable Shale Development (CSSD) has popped back into the news. The CSSD is an effort by both the drilling industry and environmental groups to craft a set of standards that both sides can support resulting in (for those companies who follow the standards)–a sort of Underwriters Laboratory “seal of approval” certification. You can boil it down to an effort to, “Can’t we all just get along?” As MDN has chronicled over the past two years since it was launched in March 2013, it’s been a rocky start for the CSSD (see MDN’s string of stories on the CSSD here). MDN has been critical of the organization from the beginning, although lately we’ve begun to warm to the organization and its mission. We’ve spoken in person with both the former executive director of the CSSD, Andrew Place (from EQT) and the current executive director, Susan LeGros. They both make a compelling case for the organization. LeGros and the CSSD announced last week they have, for the first time, expanded one of their 15 standards to include guidelines for what happens to frack wastewater after it has left the drilling site…
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Anti-Drilling/Fossil Fuel | Columbia County | Industrywide Issues | Pennsylvania

A Picture of a “Peaceful” Protester “Targeted” by the Evil Gas Industry
March 2, 2015March 2, 2015

Three weeks ago we told you about Wendy Lee, a Marxist professor at Bloomsburg University (Columbia County, PA) who feels like she’s being singled out for scrutiny by law enforcement authorities because of her protest activities against shale gas drilling (see Anti-Drillers Don’t Like Being Considered Suspects in Crimes). A PA State Trooper showed up on her doorstep a year ago to ask her some uncomfortable questions. She’s still spitting and sputtering about it a year later, even though she was never arrested nor even accused of anything. Lee maintains she’s just an aw shucks peaceful protester and the big, evil, nasty drilling industry is trying to silence her with scare tactics. Just one teeny tiny problem with her contention that she’s “just a peaceful protester.” In this case, a picture is truly worth a thousand words…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Ripping the Mask off PennFuture & It’s Former Employees
February 27, 2015February 27, 2015

For months now, since the announcements of who then Gov.-elect Tom Wolf would appoint in his new administration to head up environmental efforts at both the Dept. of Environmental Protection (John Quigley) and the Dept. of Conservation and Natural Resources (Cindy Dunn), MDN has called attention to the fact that both of those individuals are problematic based on their previous roles in the anti-drilling organization PennFuture. A third member of the Wolf administration is John Hanger, a previous Secretary at the DEP and an early member (supposedly founder) of PennFuture. All three once worked for Democrat Gov. Ed “Fast Eddie” Rendell and now are at the top of the power structure in Harrisburg working for Wolf. MDN friend and ace analyst Tom Shepstone rips the mask off PennFuture and exposes it for what it is in a new article published on his always excellent Natural Gas Now website. Tom delves into the intricate (and sleazy) web that connects PennFuture to anti-drilling organizations like the Heinz Endowments, the Delaware Riverkeeper, William Penn Foundation, FracTracker Alliance and others. Because it’s important for PA citizens to understand who these people are–and because it’s important for PA’s legislators to question (grill) Quigley and Dunn about their anti-drilling activities before confirming them–we bring you Tom’s excellent expose below…
Read More “Ripping the Mask off PennFuture & It’s Former Employees”
Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Potter County | Regulation | Statewide PA | Tioga County (PA)

Crushing Defeat for PennFuture in Lawsuit re Compressor Stations
February 27, 2015February 27, 2015

PennFuture, the anti-drilling organization that has produced three top lieutenants in the PA Gov. Tom Wolf administration (see Ripping the Face off PennFuture & It’s Former Employees), frequently uses the court system in its attempt to slow or stop the Marcellus industry. One such case was a lawsuit PennFuture filed against Ultra Resources in 2011. Ultra had eight compressor stations scattered across Tioga and Potter counties–all of them many miles apart from each other. PennFuture tried to make the legal argument that all of the compressor stations should be combined together and treated as a single entity for the purposes of the federal Clean Air Act, which would have resulted in either very expensive equipment to reduce each facility’s nitrgen oxide (NOx) output, or perhaps closed some of them down to make the combined total come in under a certain threshold. PennFuture tried to say the eight facilities are “adjacent” for the purpose of the Clean Air Act. Ultra argued adjacent means “next to,” as in sharing a border. It all boils down to what the definition of adjacent means. Earlier this week U.S. District Court for Pennsylvania’s Middle District ruled in favor of Ultra and against PennFuture…
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