Pennsylvania

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov Wolf Tries to Walk Back Ban Comment, PIOGA Doesn’t Buy It
February 20, 2015February 20, 2015

Is Pennsylvania Gov. Tom Wolf an extortionist? Or is he just dumb? Last week, in response to a reporter’s question about his proposed severance tax and what might happen if it doesn’t pass the legislature, Wolf said this: “You know, the alternative is not really no tax… the alternative is no drilling – a ban as in the case of New York” (see PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax). What the heck did he mean by that? And why are there NO mainstream media outlets covering it? Yesterday Wolf tried to walk back his comment without looking like a dolt. He didn’t succeed. The Pennsylvania Independent Oil and Gas Association (PIOGA) is fighting mad and says Wolf’s comment is tantamount to extortion (see their letter below). So which is it Gov. Wolf? Are you threatening the Marcellus industry in your state–pay the tax or die? Did you take one too many Xanax pills before the presser last week and you “misspoke”? What, precisely, did you mean by your comment?…
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Air Quality | Industrywide Issues | Pennsylvania | Research | Statewide PA

New Peer Reviewed Study: Marcellus Fugitive Methane is Minuscule
February 20, 2015February 20, 2015

A new study on methane emissions in the Marcellus by researchers at the University of Colorado’s Cooperative Institute for Research in Environmental Sciences and the National Oceanic and Atmospheric Administration (NOAA) has just been published in the peer reviewed Journal of Geophysical Research: Atmospheres. The study, titled “Quantifying atmospheric methane emissions from the Haynesville, Fayetteville, and northeastern Marcellus shale gas production regions” (full copy below), finds very little methane leakage in the Marcellus Shale region. This study is one more nail in the coffin of the wild theories of professors Robert Howarth and Tony Ingraffea (from the once-great Cornell University) about “fugitive methane” leaking out all over the place, heating up Mother Earth. In fact, this new research finds leakage from Marcellus operations is between 0.18% to 0.41%. That’s less than 2/10ths of a percent to about 4/10ths of a percent on average. It’s minuscule…
Read More “New Peer Reviewed Study: Marcellus Fugitive Methane is Minuscule”
Access Midstream Partners | Bradford County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Williams

PA Landowners File RICO Royalty Lawsuit Against Chesapeake/Williams
February 19, 2015February 19, 2015

Along with acquiring Access Midstream (formerly Chesapeake Midstream), Williams has just acquired a brand new lawsuit. Two Bradford County, PA law firms along with a New Jersey law firm on Tuesday filed a RICO (Racketeer Influenced and Corrupt Organizations Act) lawsuit on behalf of 90 landowners in Bradford County against Chesapeake Energy and Williams Partners (because Williams is now the owner of what was Access Midstream) claiming Chessy and Williams/Access conspired to defraud landowners of royalty money by deducting post-production expenses they had no right to deduct…
Read More “PA Landowners File RICO Royalty Lawsuit Against Chesapeake/Williams”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Susquehanna County

Cabot O&G Loses PA Supreme Court Case to Extend Lease
February 19, 2015February 19, 2015

In 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. Learning that others in the area got better deals and feeling they were not only hoodwinked but pressured into signing, they sued Cabot halfway through the lease to dissolve it. 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 on Tuesday they rendered their decision…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Northampton County | PennEast Pipeline | Pennsylvania | Pipelines

PA’s Schizophrenic Anti-Drillers: Go Slow, Hurry Up
February 19, 2015February 19, 2015

Anti-drillers are an interesting (and hypocritical, perhaps schizophrenic) bunch, as we’ve pointed out many times. They eschew “dirty” fossil fuels, yet they use fossil fuels every day, from the moment they wake up to the moment they go to bed (and even while they’re sleeping). Take the anti-drillers in Pennsylvania. A story mainstream media refused to report was the fact that the PA State Democrat Party–the home of anti-drillers in the Keystone State–passed an official plank in their platform in June 2013 ahead of the election for governor that would place an ongoing moratorium on all new Marcellus Shale drilling in the state (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). Their reasoning? We need more data. We need to slow it down. We don’t have enough facts. We need to deliberate. Contrast that with anti-drilling Supervisor Andy Donello from Upper Nazareth Township in southeast PA (and others like him) with respect to the PennEast Pipeline…
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Pennsylvania | Statewide PA

PA Production in 2H14 Soars to New Record; 4 Tcf in 2014
February 18, 2015February 18, 2015

The Pennsylvania Dept. of Environmental Protection (DEP) published its semi-annual (every 6 months) production report yesterday for Marcellus/Utica Shale gas production. The big news is that once again PA has shattered another record. In the second half of 2014 PA produced 2 trillion cubic feet (Tcf) of natural gas, making it ~4 Tcf for the entire year. That works out to be around 16% of all gas used throughout the United States–coming from a single state. Chesapeake Energy produced the most gas in 2H14 (with 712 producing wells), followed by Cabot Oil & Gas (340 producing wells). Below we have some more stats and facts about PA’s production for 2014…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax
February 18, 2015February 18, 2015

Somehow in the flurry of news last week when Pennsylvania Gov. Tom Wolf released his so-called proposal to tax the Marcellus Shale industry (see PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax), we missed the fact that Wolf threatened the entire Marcellus Shale industry with a ban on drilling if the industry doesn’t fall into line and support his tax. Sure sounds like good old Philly-style break-their-kneecaps talk from the kinder, gentler and oh-so-much-smarter than everyone else Tom Wolf. His precise words: “…the alternative is not really no tax, the alternative is no drilling, a ban as in the case of New York.” Our collective jaws hit the ground. How can anyone not see this man for what he is? For what he’s trying to do (end drilling)? Like an old-style mob boss–you pay him or you get hurt–and hurt real bad. Fortunately, some groups like the Pennsylvania Independent Oil and Gas Association (PIOGA) isn’t taking Wolf’s threat lying down. They’re in the mood to fight…
Read More “PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Why did PA DEP Acting Sec Quigley Mass Fire Gas Advisory Board?
February 18, 2015March 26, 2015

Even though he’s still only “acting” Secretary of the Dept. of Environmental Protection (DEP), John Quigley is cleaning house at the DEP–installing his own yes-men and women in important positions–and doing it just prior to issuing important new drilling regulations. For some time politicians and old-line mom and pop conventional (non-shale) drillers have been making a fuss that the rules that apply to shale drillers should not apply to non-shale drillers. Fair enough. There are some major differences. But the timing for creating a new Conventional Oil and Gas Advisory Committee in addition to the Oil and Gas Technical Advisory Board (OGTAB)–and mass firing the members of the OGTAB (as Quigley has done) seems darned peculiar in light of the fact they have to publish new drilling regulations this year or what has been a 3-year process will need to be restarted all over again…
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Electrical Generation | Industrywide Issues | Pennsylvania | Snyder County

Panda Power Building 3rd Marcellus-Fired Electric Plant in PA
February 18, 2015February 18, 2015

MDN has previously told you about Panda Power Funds, a private equity firm located in Dallas, TX that’s building two 829-megawatt electric generating plants in Pennsylvania (see Plugging in to Panda Power’s Electric Generation Supply Chain). Panda Liberty is located in Towanda, and Panda Patriot in Williamsport. Both will be fed by abundant, cheap and clean-burning Marcellus Shale gas. You can now add a third such project to the Panda portfolio. Yesterday Panda announced a joint venture with Sunbury Generation to build a whopping 1,000-megawatt plant on the site of a recently retired coal-fired plant near Shamokin Dam in Snyder County, PA…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Snyder County | UGI Energy Services

UGI Building 35-Mile Pipeline for Panda Power Electric Plant
February 18, 2015February 18, 2015

Panda Power announced yesterday that they will build a new 1,000-megawatt electric generating plant powered by Marcellus Shale gas in Snyder County, PA (see today’s companion story). In order to get Marcellus gas to the plant site, a 35-mile pipeline is needed. Enter UGI, one of Pennsylvania’s largest utility companies with a midstream subsidiary that builds pipelines. UGI has committed $160 million to build the 20-inch pipeline needed to supply the plant…
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Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA DCNR Program Leases Under Rivers/Creeks for Marcellus Drilling
February 17, 2015February 17, 2015

Well now THIS is just not supposed to happen. The pure-as-the-wind-driven-snow PA Gov. Tom Wolf’s Dept. of Conservation and Natural Resources (DCNR) is stepping up its program of leasing underneath rivers, creeks and mud puddles for Marcellus and Utica Shale drilling–much to the consternation of anti-drilling groups like PennFuture (whose immediate past president, Cindy Dunn, is about to become Secretary of DCNR). When DCNR collected for river and stream leases under Republican Gov. Tom Corbett, the Democrat media machine reported it as a clandestine and secretive activity (see PA’s “Secret” Deal to Lease Land Under Rivers & Streams (Gasp!)). It actually has been quite public–MDN told you about this program all the way back in 2012 when it was launched (see PA DCNR Wants Money for Drilling Under Public Streams/Rivers). Our concern was/remains that the state of Pennsylvania may be claiming money for land that belongs to private landowners–denying private landowners of lease bonuses and royalties. Below we have the lease terms dictated by DCNR, a map of the (almost innumerable) waterways PA claims they own, a list of the names for those waterways, and the criteria DCNR uses in determining whether or not a waterway is owned by the state…
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Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA | Taxation

PA Dept of Revenue Still Takes Bite from Royalties, Just Smaller
February 17, 2015February 17, 2015

Last month we shared with Pennsylvania landowners who receive royalty checks the distressing news that the PA Dept. of Revenue is attempting to deny them deductions for certain production costs (see The Tax Man Returneth — for PA Landowners with Royalties). It appeared that the DOR was ramping up an aggressive campaign to drill landowners for money, sending out semi-threatening letters. Accountants told landowners to sit tight and see how this shakes out. Turns out that was good advice. DOR is now backing down on their previous aggressive claims. Oh they still want a pound or so of flesh–they still claim not all deductions are allowed that have been taken–but they are being more reasonable…
Read More “PA Dept of Revenue Still Takes Bite from Royalties, Just Smaller”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Pennsylvania | Regulation | Statewide PA | Wastewater

PA Dem Congressman “Steps Up” Frack Waste Witch Hunt
February 17, 2015February 17, 2015

Pennsylvania Congressman Matt Cartwright, an anti-drilling Democrat from northeast PA, began a bash-shale-drilling meme late last year (see PA Dem Congressman Demands Info from DEP on Frack Waste and PA Dem Congressman Cartwright Continues to Bash DEP). Cartwright wants to violate the U.S. Constitution and remove individual states rights to regulate oil and gas drilling and instead concentrate that power in Washington, D.C. where people like the arrogant Cartwright can control it via fiat. Cartwright is at it again. He’s “stepped up” his so-called investigation into shale waste disposal. The AP recently visited with Cartwright to take dictation…
Read More “PA Dem Congressman “Steps Up” Frack Waste Witch Hunt”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Susquehanna County

Cabot O&G Clipped $50K by SRBC for Lack of Water Permit
February 16, 2015February 16, 2015

Timing is everything. If you start drilling a hole too early, it will cost you. In this case, $50,000. That’s the amount Cabot Oil & Gas has offered to pay the Susquehanna River Basin Commission (SRBC) for their eager-beaver error in drilling a hole on a new well pad in Susquehanna County, PA before they had the necessary approval from the SRBC. No, the SRBC doesn’t suddenly issue permits to drill–that’s the job of the DEP (Dept. of Environmental Protection). However, the SRBC does issue permits for the water that’s needed to drill, and it was that permit Cabot didn’t have in hand when they started to drill late last year. The SRBC says it’s not a big deal and that Cabot is normally “very compliant.” That is, it was a mistake and not intentional. There was no environmental harm as a result. However, for Cabot, it was a costly mistake…
Read More “Cabot O&G Clipped $50K by SRBC for Lack of Water Permit”
Pennsylvania | Statewide PA

Shale Gas News Radio – Feb 14, 2015 [Audio]
February 16, 2015February 16, 2015

Every Saturday the one-hour Shale Gas News show airs on Scranton, PA’s 94.3 FM “The Talker” radio station. The show is co-hosted by Kevin Lynn of Linde Corporation and Bill desRosiers from Cabot Oil & Gas. MDN brings you the latest program show notes and recordings for Shale Gas News each week (well worth your time to listen). Here’s the latest program, recorded on Saturday, Feb 14…
Read More “Shale Gas News Radio – Feb 14, 2015 [Audio]”
Energy Companies | JKLM Energy | Lease & Royalty Payments | Pennsylvania | Potter County | Utica Shale

Potter County, PA Hospital Leases Land to JKLM for Utica Drilling
February 13, 2015September 28, 2015

UPDATE: A sharp MDN reader tipped us with more of the details on this deal. The Cole property is 742.9 acres (located in the Townships of Eulalia and Sweden, and in the Borough of Coudersport); the lease signing bonus payment is reportedly $2,200 per acre, which makes the up-front payment to Cole Memorial a whopping $1,634,380; and the royalty is rumored to be 15%. Thanks to our great reader!

Cole Memorial Hospital in Coudersport (Potter County), PA has reportedly signed a lease with JKLM Energy to allow shale drilling on a “substantial amount” of hospital-owned property. What we don’t know about the deal is more than we do know. We don’t know how many acres. We don’t know how much the signing bonus was for. And we don’t know what royalty was agreed to. How’s that for good reporting? What we do know is that they signed a lease, JKLM has “ties” to Buffalo “Marcellus” Bills owner Terry Pegula. JKLM is potentially interested in the Utica layer and they will only be allowed to drill on non-hospital campus property…
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