Pennsylvania

Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell

MDN’s “Juvenile” Needling of Shell over Slow Cracker Pace
November 4, 2014November 4, 2014

An MDN reader wrote editor Jim Willis yesterday to take issue with our observation that “it’s about time” Shell did something to advance their ethane cracker project in Beaver County, PA (see Shell to Hold Info Session on Monaca Ethane Cracker Next Week). In a not-so-subtle way, the reader essentially told us to get our heads out of our…frac sand…and take note that Shell has been very active over the past year or so with advancing their project, contrary to our “juvenile” remarks suggesting otherwise. In particular, the old Horsehead Holding Corp. zinc smelter at the site was shut down this past May. The buildings were knocked down and are now almost completely removed from the site. Our not-so-subtle source also pointed us to Jeff Burd’s excellent blog site called Building Pittsburgh. Jeff refers to Shell and their cracker project as being like a duck…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell to Hold Info Session on Monaca Ethane Cracker Next Week
November 3, 2014November 3, 2014

All’s we can say is, It’s about time! Shell will hold a pair of public meetings next Thursday, Nov. 13, at the Lincoln Park Performing Arts Center in Midland (Beaver County) PA to discuss their plans for an ethane cracker plant in Monaca with area residents. Yes, no doubt the crazies from outside of the area will show up to gripe and complain, as always happens. No big deal. As of next week it be exactly one year ago that Odebrecht announced their “world scale” ethane cracker for Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Seems to us that since that time all of the momentum to actually build a cracker plant has been with Odebrecht/WV and that Shell’s PA effort seems to have lost steam. Perhaps Shell is finally stepping up their game once again and getting serious about building a plant, originally announced all the way back in March 2012 (see Shell Announces Location of Ethane Cracker Plant)…
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Economic Impact | Industrywide Issues | Pennsylvania | Washington County

Fracking is Feeding Americans by Saving the Family Farm
November 3, 2014November 3, 2014

Natural gas drilling is saving the family farm in Pennsylvania–literally. Farmers who receive bonus and royalty checks are using that money to buy new equipment and continue doing what they love to do–operate the family farm. It would not be a stretch to say that fracking is helping to feed Americans. Take the case of this organic farmer in Washington County, PA…
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Industrywide Issues | M&A | Pennsylvania | Supply Chain | Westmoreland County

Big Georgia Engineering Firm Buys Marcellus Engr Firm in SWPA
November 3, 2014November 3, 2014

Bigger companies gobbling up smaller companies is certainly not a new story–even in the Marcellus/Utica region. However, when the bigger company is from outside of the region (Georgia, in this case) and the company being purchased is in our region (Pennsylvania), it bears coverage. Enercon Services, Inc. with headquarters in Atlanta (Kennesaw), GA and 29 offices (with 1,600 employees) nationwide is an engineering services/consulting/land surveying company. They’ve just purchased, for an undisclosed sum, TRI-COUNTY Engineering of New Stanton, PA. New Stanton is located in Westmoreland County, in the southwest region of the state–positioned perfectly for the flurry of Marcellus and Utica drilling in the tri-state region of PA, WV and OH…
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New York | Pennsylvania | Statewide NY | Statewide PA

Election Day 2014: PA & NY at the Crossroads
November 3, 2014November 3, 2014

MDN has largely stayed out of detailed coverage of tomorrow’s election cycle. For those in New York, we recommend to you the always-excellent Joint Landowners Coalition of New York, a 70,000-member organization that seeks to get drilling moving in the Empire State. The JLCNY has a list of pro-gas candidates that they support here. We can’t point you to a similar list for PA (or WV or OH), although we assume such sources exist. If so, list them below in the comments! However, we do want to share with you a press release from the Pennsylvania Independent Oil & Gas Association (PIOGA) concerning the election of PA’s next governor. Tom Wolf (largely an anti-drilling Democrat) is running against Tom Corbett, the incumbent Republican who is pro-gas. Wolf recently made what we consider to be a lunatic statement–worthy of institutionalization. He said slapping a new 5% severance tax on natural gas production in the state will actually help the drilling industry! How does one even respond to such utter stupidity?…
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Pennsylvania | Statewide PA

New Book: The Law of Oil & Gas in Pennsylvania
November 3, 2014November 3, 2014

The Pennsylvania Bar Institute (no…silly, not the drinking kind of bar, the practicing law kind of bar!) recently published the first comprehensive book on oil and gas law in the Keystone State since the Marcellus Shale revolution began less than 10 years ago. The 494-page books is “meticulously researched” by 28 authors (at least one of whom subscribes to MDN) who wrote 21 chapters that span the history of PA’s oil and gas law (did you know the very first oil well drilled in the U.S. was drilled in PA?) to the recent decision by the PA Supreme Court with regard to the Act 13 law that gutted the zoning provisions of the law. It’s all in there. Here’s an overview…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Delaware Riverkeeper Sues to Stop Fracking Under PA State Land
October 31, 2014October 31, 2014

The litigious (and arrogant) Maya van Rossum, aka THE Delaware Riverkeeper, is hoping that lightening, in the form of a lawsuit, will strike twice. The Delaware Riverkeeper was party to the tragedy that overturned a large portion of the 2012 Act 13 drilling law (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The decision made by the PA Supreme Court was a bad one, based on brand new so-called environmental rights that didn’t previously exist. It was also based on the false premise that oil and shale drilling are inherently harmful to the environment (see Industry Vet Points Out Error in PA Supreme Court Act 13 Ruling). We have more than 60 years of active drilling/evidence that says the practice is safe. But we digress. PA Gov. Tom Corbett plans to expand a program already underway in the state to allow a teeny tiny bit more drilling under PA’s state forests. Ms. Rossum is determined to stop it…
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Energy Services | Pennsylvania | Statewide PA | UIL Holdings

Mayor Nutter, State PUC Attempt CPR on Dead PGW Deal
October 31, 2014October 31, 2014

The corrupt Philadelphia City Council killed the sale of the municipally-owned Philadelphia Gas Works earlier this week (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). PGW is bleeding money and rates for residents are sky high, in no small part because they still buy their gas from the Gulf Coast instead of getting it from the nearby (and super cheap) Marcellus region in their own state! What’s next in the process? Philly’s Democrat Mayor, Michael Nutter, along with the state Public Utility Commission (PUC), haven’t quite given up on the deal–not yet. They’re bringing enormous pressure on council members to at least take a vote, something Council President Darrell Clarke has been unwilling to do. The PUC had been waiting to conduct hearings on PGW because of the impending sale. With the sale off, the PUC is turning up the heat and will hold hearings in the next two weeks to demand answers from PGW (and Council) on how they’ll fix the mess they’ve created…
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Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

Invenergy Buys Land in NEPA for Natgas Electric Generating Plant
October 31, 2014October 31, 2014

More than a year ago MDN told you about a new natural gas-powered electric generating plant being planned for Jessup (Lackawanna County, PA (see Marcellus Gas to Power Combined-Cycle Electricity Plant in NE PA). Invenergy, the company that will build the plant (and North America’s largest wind power generator), says the Jessup plant is still “years down the road.” But they’ve just taken the first step on that road by purchasing 80 acres of old coal property…
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Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Mariner East NGL Pipeline Begins Tests in Lebanon, PA
October 30, 2014October 30, 2014

It’s funny how reading anti-drilling media reports you get the impression that projects like Sunoco Logistics’ Mariner East Pipeline may be in jeopardy. The pipeline runs 300 miles from the western edge of Pennsylvania (and beyond) to southeastern PA in the Philadelphia area–to the Marcus Hook refinery. The pipeline, which will flow ethane and propane (natural gas liquids) is already in the ground except for a few miles in western PA. The only thing needed is approval to build 18 pump stations and 17 valve control stations in 31 municipalities along the route. Some of the municipalities are resisting by throwing up legal roadblocks (see West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline). Meanwhile, Sunoco plows ahead and has started testing the pipeline, to get it ready to go. In other words, this is not a question of if, it’s a question of when…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Pennsylvania | Regulation | Statewide PA | Wastewater

PA Dem Congressman Demands Info from DEP on Frack Waste
October 30, 2014October 30, 2014

An anti-drilling Pennsylvania Democrat Congressman, Matt Cartwright, believes Washington, DC and not the individual states should be the ones regulating shale oil and gas drilling. So Cartwright, under the pretense of seeking information, has sent a letter to the acting Secretary of the PA Dept. of Environmental Protection (DEP) seeking information on how the state oversees frack waste disposal (wastewater and drill cuttings). Cartwright is the just the latest PA Democrat to bash away at the single industry keeping the PA economy out of the economic crapper. Cartwright, in his letter, refers to the flawed “report” from another high profile PA Dem who is critical of the industry, state Auditor General Eugene DePasquale (see Anti-Drilling PA Auditor General Criticizes DEP in “Report”)…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA | UGI Energy Services

Spectra Energy Becomes 6th Partner in PennEast Pipeline Project
October 30, 2014October 30, 2014

The more the merrier. The quintet of companies who are partnering to build the 100-mile PennEast Pipeline from northeastern PA to Trenton, NJ has turned into a sextet. Large regional utility company UGI has been/continues to be the lead company building the pipeline (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The other original investors were AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries. In September, the four original partners were joined by PSEG Power, New Jersey’s largest utility (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). Now it’s partner number six: Spectra Energy…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!
October 29, 2014October 29, 2014

Last week Cabot Oil & Gas issued its third quarter update. The official announcement was long on the financials and very short on details for their ongoing Marcellus Shale program in Susquehanna County, PA. We’ve lifted the relevant (short) section below. However, the company also held the ubiquitous analyst phone call and in that phone call (transcript below), we get a lot more detail about Cabot’s Marcellus program. One gem: the company is now producing 1.8 to 2.0 billion cubic feet per day of natural gas in the Marcellus. Cabot will be the first company to be officially inducted into the record-breaking 2 Bcf/d Club! Although the company plans to drill 180-190 new wells in 2015, only about half of those wells will be in the Marcellus. Alas, another shale play is now turning the head of Cabot…
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Bradford County | Energy Companies | Lycoming County | Pennsylvania | Southwestern Energy | Susquehanna County

Southwestern 3Q14: 2 Wells Near NY Border are “Promising”
October 29, 2014October 29, 2014

Southwestern Energy released their third quarter financial and operational update late last week. Picking through the release we find that their Marcellus gas production is up 47% from a year ago this time. At the end of September, the company had 234 operating Marcellus wells in production, and another 102 wells in various stages of being drilled. The vast majority of Southwestern’s wells are in Susquehanna and Bradford counties (PA), with a fair number also in Lycoming County, PA. Southwestern says they continue to test “the Upper Marcellus” and have drilled three such wells to date. Perhaps the biggest news (for New Yorkers) is this statement: “Two wells have also been drilled near the New York border in Susquehanna County. Early results are positive and work has begun to build a gathering system for future development in this area.” You can’t tell us there isn’t a boatload of gas sitting right across the border in the Empire State–if only the man-child Andrew Cuomo would make up his mind to allow drilling…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UIL Holdings

Philly City Council Kills the Phila. Gas Works $1.86B Deal
October 28, 2014October 28, 2014

There’s a reason Philadelphia has the reputation of being one of the most corrupt cities in America–because it is. We have proof. Back in March of this year, after a long, hard process, the Democrat Mayor of Philly, Michael Nutter, announced a deal to sell the municipally-owned (and bleeding money) Philadelphia Gas Works to UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility holding company (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). The deal would have injected $424 million into the city’s failing pension fund. It was a win/win all the way around. What did the corrupt City Council do? Diddle around, giving special interests time to mount opposition (see Philly City Council Continues to Diddle Around on PGW Sale). Yesterday the corrupt City Council announced they were killing the deal Nutter, one of their own, worked so hard to negotiate…
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CNG/LNG | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Regional LNG Plant, Filling Stations Coming to Pittsburgh Region
October 28, 2014October 28, 2014

A man with a long history of projects and companies dealing in LNG (liquefied natural gas) and CNG (compressed natural gas), Robert E. Petsinger, has announced he’s putting together financing for a $440 million company that will (a) build a regional LNG production plant along the banks of the Ohio River somewhere near Pittsburgh, and (b) build 50 LNG and LNG-derived compressed natural gas stations within a 500-mile radius of Pittsburgh. The reason for the location? To use cheap, abundant, locally mined Marcellus Shale gas. Given Petsinger’s history, this is no blue flame pipe dream. You can take it to the bank…
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