Pennsylvania

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    EIA: Marcellus #1 Proved Reserves Shale in U.S., PA #2 for Gas

    Yesterday the U.S. Energy Information Administration (EIA), our favorite government agency (the only one worth funding in our opinion) issued its annual U.S. Crude Oil and Natural Gas Proved Reserves for 2012 report (full copy embedded below). It takes a long time to crunch and analyze the numbers, hence these kinds of reports are 2 years delayed. But wow! What an interesting report. It shows that in 2012 the Marcellus Shale became the nation’s largest shale play–at least by proved reserves–surpassing the Barnett Shale in Texas, the former reigning champ of proved reserves. Pennsylvania rocketed from fifth to second largest gas reserve state. The report also shows the Texas Eagle Ford Shale play passed the North Dakota Bakken to become the largest tight oil shale play in the U.S. That’s the big big news. But there’s plenty of smaller big news too.

    First up, what the heck is proved reserves? The EIA defines it this way: “Proved reserves are volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.” You might think proved reserves are our best guess as to how much total oil or gas is down there, based on sound scientific data. But you would be wrong. It’s what’s down there that we’re willing to go get based on today’s economics. Important distinction. What that means is the commodity price for oil and gas has a lot to do with proved reserves numbers. The oil and gas can be locked away down there (indeed it is down there), but if we’re not willing to get it out of the ground because we can’t make a profit–it might as well not exist…
    Read More “EIA: Marcellus #1 Proved Reserves Shale in U.S., PA #2 for Gas”

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    Sham Study by UK Authors Says PA Shale Wells Fail at High Rate

    A new “study” is starting to make the rounds in the incestuous echo chamber of anti-drillers and their sycophantic supporters in the mainstream media. The study, titled “Oil and gas wells and their integrity: Implications for shale and unconventional resource exploitation” is published in the “peer-reviewed” Marine and Petroleum Geology journal (full copy of the study embedded below). It’s written mainly by UK authors, with a couple of US authors thrown in to sweeten the pot. None of them are from universities in Pennsylvania. Here’s a typical headline generated by this new study: “Pennsylvania Fracking Wells Are Dangerous, Study Finds.” Which is a lie. But the media hopes you won’t read beyond the headlines. We actually do.

    Here’s the first thing to know about this “study”: There is no (that is zero) new data in the study. It’s a review of other people’s data and research in “the published literature and online.” That is, the authors didn’t do any actual science or field work–they just read what anti-drilling wackos have published on websites and in print and rounded it all up and called it science. The second thing to know, regarding their evaluation of the data from Pennsylvania, is this: “the search criteria used to categorise leakage incidents in Pennsylvania followed the approach described by [Anthony] Ingraffea.” That is, the authors intentionally chose to ignore the better data of what constitutes well leakage in Pennsylvania tabulated and tracked by the agency charged with monitoring it (the PA DEP) and instead chose to use Cornell anti-drilling professor Tony Ingraffea’s wild interpretations of the DEP data. That right there tells you all you need to know about this sham of a “study”…
    Read More “Sham Study by UK Authors Says PA Shale Wells Fail at High Rate”

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    PA DEP Says Chevron Blocked Access to Greene County Well Fire

    On Feb. 11 Chevron’s Lanco 7H well in Greene County, PA exploded and caught fire. Although it’s not clear what caused the explosion, workers were connecting the well to a gathering pipeline (i.e. welding) and it’s not much of a stretch to connect the dots. One of the workers at the site tragically lost his life (see Remains of Chevron Contractor Found at Greene County Well Site). The fire at Lanco 7H spread to the well next it–Lanco 6H. After five days the twin fires were put out and eventually the wells were capped (see Chevron Well Fire Update: 2nd Well Capped, Work on 7 Wells Stopped).

    Both the PA Dept. of Environmental Protection (DEP) and Chevron continue to investigate what went wrong. However, three weeks ago the DEP issued a preliminary Notice of Violation about the accident and fires (see it embedded below). The surprising revelation in the NOV is that Chevron blocked DEP personnel from accessing the site for two days while the fire burned. DEP personnel, by law, have carte blanche access to any well anywhere at any time. Chevron was no doubt trying to protect the DEP agents, however, blocking them from the site clearly rankled the agency and will now be part of a fine they eventually assess on Chevron…
    Read More “PA DEP Says Chevron Blocked Access to Greene County Well Fire”

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    WV Conference Speaker Says PA is Tops with Spill Containment Regs

    The main focus for the West Virginia Oil and Natural Gas Association’s ShaleSafe Conference and Expo at Oglebay Park in Wheeling this week was silica dust exposure (see MDN’s related article published today). However, another session was a close second as Topic A–the session on spill containment. The sole presenter on spill containment was Beth Powell from New Pig Energy. Spill containment became a huge topic for everyone in West Virginia after a chemical spill related to coal mining affected the drinking water for 300,000 WV residents earlier this year. In the aftermath of that spill, the WV legislature passed new regulations for chemical storage tanks–regulations that affect not only the coal industry guilty of the spill, but also the shale drilling industry too (see Impact of WV’s New Chemical Tank Law on Marcellus Drillers).

    Ms. Powell had some interesting things to say about spill containment–and she should know since well pad containment systems are New Pig’s business. Among her comments, Powell said Pennsylvania’s Dept. of Environmental Protection (DEP) regulations are far more strict than either West Virginia or Ohio when it comes to spills and spill containment. Now that’s something you don’t hear from anti-drillers in PA who try to paint the DEP as lax, derelict in their duty, and in bed with the drilling industry…
    Read More “WV Conference Speaker Says PA is Tops with Spill Containment Regs”

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    2 Spineless PA RINOs Join Call for High Marcellus Severance Tax

    Several mainstream media outlets are trumpeting that “Republicans join the call for tax on Marcellus drillers.” Of course you have to read the fine print of the story to learn the so-called Republicans, which are really Republicans-In-Name-Only (RINOs), are really just two Republicans from the Philadelphia area where there is no drilling. They both want to stick their fingers into the pockets of landowners and drillers so they have funny money to throw around and buy votes with. Yes, we’re talking to you Gene DiGirolamo (Bucks County) and Tom Murt (Montgomery/Philadelphia counties). Shame on both of you.

    The real story is this: Two spineless RINO sellouts from the Philly area “join the call” for obscene taxes on the drilling industry. There is no mass movement among Republicans in Pennsylvania to kill off the drilling industry with high severance taxes being advocated by just about every Democrat legislator and Democrat candidate in the state. We sure hope the people of PA have wised up to the Dem drivel about taxing one industry (shale drilling) to give the Dems (and RINOs) boatloads of money to squander on pet projects–the chief pet project being to put money into the pockets of people who will vote for them…
    Read More “2 Spineless PA RINOs Join Call for High Marcellus Severance Tax”

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    Bad to Worse: PA Royalty Owner Asks Court for Chessy Class Action

    from bad to worseChesapeake Energy continues to find itself under the metaphorical gun with respect to royalty payments in Pennsylvania. The PA legislature is considering a bill (HB 1684) that would plug a legal loophole and require Chesapeake and other drillers to pay landowners a 12.5% minimum royalty regardless of post-production costs (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). Landowners in Bradford County sued Chessy held an anti-Chesapeake rally to further express their extreme displeasure (see Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans). Gov. Corbett asked PA’s anti-drilling Attorney General, Kathleen Kane, to investigate (showing how bad it’s gotten–to stoop to asking her to get involved).

    And now from bad to worse: a company that owns royalty rights in PA, Scout Petroleum, claims they’ve been screwed out of royalties by Chesapeake and has asked a judge for a full refund and to force Chesapeake into arbitration and grant class-action status to the whole, festering mess…
    Read More “Bad to Worse: PA Royalty Owner Asks Court for Chessy Class Action”

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    Act 13 Case Goes Back to Court, Drillers Petition to Join Lawsuit

    The Marcellus Shale drilling industry in Pennsylvania is trying to make some lemonade from the truckload of lemons handed to them by the PA Supreme Court’s ill-fated decision to let seven selfish townships gut the state’s Act 13 drilling law passed in 2012. We’ve covered the issue extensively (see a list of MDN’s Act 13 articles here). Perhaps the most egregious and outrageous miscarriage of justice in the case is that the drilling industry, which is directly affected by the case, was never allowed to join the case. The courts said they didn’t have “standing”–and yet those same courts allowed the virulently anti-drilling Delaware Riverkeeper Network to be party to the case. Simply boggles the mind.

    The PA Supreme’s in their “wisdom,” decided the zoning portions of the case and sent the rest of the case back to a lower court so they could finish gutting the Act 13 law. As MDN previously reported exactly a month ago, the drilling industry has, once again, respectfully requested they be allowed to join the case now that it’s in the home stretch (see Drillers Petition PA Court (Again) to Participate in Act 13 Case). While the drilling industry can’t undo what has been done by the Supreme Court, it is clear that they believe they can lessen the damage done if they win certain arguments in lower court–arguments like affirming the Public Utility Commission’s authority to review whether a zoning ordinance crosses the line and preempts state oil and gas law. In other words, the seven selfish towns may not have gotten their own selfish way after all–not entirely. The hearing on whether to allow the industry to join what’s left of the lawsuit is today…
    Read More “Act 13 Case Goes Back to Court, Drillers Petition to Join Lawsuit”

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    NOVA Visits Pittsburgh, Takes About Sarnia Cracker Expansion

    Last December MDN brought you the news that NOVA Chemicals, which operates the Corunna ethane cracker plant in Sarnia, Ontario (Canada) plans to expand their cracker plant using more Marcellus and Utica Shale ethane (see NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia). At that time NOVA said they will expand capacity by an additional 20% gradually between 2014 and 2018.

    At a special event in Pittsburgh designed to strengthen the already-strong connection between Pennsylvania and Canada, called Pop-Up Canada, NOVA vice president John Hotz provided a few more details about NOVA’s plans for the Corunna cracker plant…
    Read More “NOVA Visits Pittsburgh, Takes About Sarnia Cracker Expansion”

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    Anti-Drilling Groups Want PA DEP to Investigate 2-Yr Old EQT Spill

    News flash: A bunch of virulently anti-drilling groups, including PennEnvironment, PennFuture, the [so-called] Responsible Drilling Alliance, the Delaware Riverkeeper Network, Clean Water Action, and the Lower Susquehanna Riverkeeper are asking the Pennsylvania Dept. of Environmental Protection (DEP) to investigate a two-year old spill of frack water in Tioga County, PA by EQT. Further news flash: said virulently anti-drilling groups think EQT is an “irresponsible operator” in the Marcellus. Film at 11.

    Here’s the propaganda fundraiser (also called a press release) issued by said virulently anti-drilling groups:
    Read More “Anti-Drilling Groups Want PA DEP to Investigate 2-Yr Old EQT Spill”

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    Plugging in to Panda Power’s Electric Generation Supply Chain

    As we reported in December, Panda Power Funds, a private equity firm located in Dallas, TX, purchased the rights to build two electric generating plants–one in Bradford County, PA and the other in Lycoming County, PA (see Panda Power Buys Rights for 2nd Marcellus-Fueled Electric Plant). Construction on the Bradford County plant, dubbed Panda Liberty, is under way now. Panda is spending northward of $1.3 billion to build the two plants–an incredible amount of money that’s being pumped into the northeastern Pennsylvania economy.

    MDN spotted an article that mentions Panda and their projects, including the two PA electric plants. The reason that we bring it to you is that it provides background on the vendors Panda is using to build the plants. Which may be of interest to companies that would like to plug into the supply chain and see if they can drum up some business from these two projects…
    Read More “Plugging in to Panda Power’s Electric Generation Supply Chain”

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    Rare Schism Between Landowners & Drillers over PA Royalty Law

    Several weeks ago MDN told you that the Pennsylvania chapter of the National Association of Royalty Owners had sent out a flash email to encourage support of House Bill (HB) 1684, the Guaranteed Minimum Royalty Act. The bill would clear up shady dealings from Chesapeake Energy (and perhaps others) in deducting certain expenses leaving some landowners with checks for royalties way under the 12.5% guaranteed minimum (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). Not long after NARO sounded the rallying cry, the Pennsylvania Farm Bureau joined NARO in supporting HB 1684 (see PA Farm Bureau Joins Chorus Against Chessy on Royalty Issue).

    However, this is one issue on which landowners, who are strongly pro-drilling, and the drilling industry itself, part ways. The Marcellus Shale Coalition, through its new grassroots organization called Shale Advocates, is asking shale supporters to oppose HB 1684. According to the Shale Advocates website, they want their supporters to “Take a few moments to contact your representative and let them know you oppose HB1684 and any effort by the Commonwealth to intervene in private contracts. Here’s your opportunity to be heard. Your voice will make a difference.” After HB 1684 has been larded up with amendments, NARO met to consider whether or not they would still support it and in the end, they see more to like than no like about the bill–so they issued the following press release last week to reaffirm their strong support:
    Read More “Rare Schism Between Landowners & Drillers over PA Royalty Law”

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    New CSSD Director Says “Entrenched Views” Biggest Obstacle

    In January MDN told you that the Center for Sustainable Shale (CSSD) had come roaring back to life and had appointed a new executive director. Environmentalist lawyer Susan LeGros from Philadelphia was appointed to the post. In her previous law practice she worked with solar companies–which seems like an odd fit for someone to head up an organization aimed at shale drilling. As we said at the time, we’ll withhold judgment for the time being (see Center for Sustainable Shale Comes Roaring Back (to Life)).

    The Pittsburgh Post-Gazette caught up with Ms. LeGros to ask her how it’s going at the CSSD and how she likes her new home in Pittsburgh. Here’s what she had to say:
    Read More “New CSSD Director Says “Entrenched Views” Biggest Obstacle”

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    2013 PA Impact Fee Sets Record: $224.5M, Grand Total Now $630M

    On Friday, PA Gov. Tom Corbett announced the Act 13 impact fee for 2013 will deliver the biggest haul yet–$224.5 million, which is up 11% from the monies collected under the impact fee for 2012. The official tallies are not yet released by the state Public Utility Commission (PUC), the agency charged with collecting the fees. However, the bills have gone out and drillers have until April 15 to pay the tax man.

    There may be a few quibbles about how the numbers were calculated, but overall, the PUC knows about how much it will receive and so Gov. Corbett, feeling pressured by the tax-and-spend Democrat candidates running for his job (cough *Tom Wolf* cough), wanted to release the good news now…
    Read More “2013 PA Impact Fee Sets Record: $224.5M, Grand Total Now $630M”

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    0.0024 of Berks County Population Opposes New $1B GTL Plant

    Over the past several years MDN has told you about a number of gas-to-liquids (GTL) projects trying to get underway in the Marcellus and Utica Shale region. GTL converts cheap, abundant natural gas into motor oils and diesel fuel. Kind of like spinning gold from hay. One of those projects is a proposal by Canadian company EmberClear Corp. that wants to build such a plant in Berks County, PA–near Philadelphia. EmberClear proposes to spend upward of an eye-popping $1 billion to build a plant that will create 100 permanent jobs when it’s completed–to say nothing of the hundreds of temporary jobs needed to build it (see Another New Gas-to-Liquids Plant Coming in PA – Near Philly).

    As soon as you announce such a project, wacko anti-drillers pop up (like a game of Whack-a-Mole) to oppose it. Such a group has formed in Berks County. Called the South Heidelberg Community Association, the group has gotten 1,000 people to sign a petition against this $1 billion economic miracle that would exist in their area. Let’s see, 1,000 people of the Berks County population of 411,442–or 2/10ths of one percent. Will this infinitesimally small number of people ruin it for everyone?…
    Read More “0.0024 of Berks County Population Opposes New $1B GTL Plant”

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    Lawyers Gutting Act 13 Law Claim PA DEP Covers Up Water Problems

    gutted deerThe Pennsylvania Dept. of Environmental Protection (DEP), along with the Act 13 law, has come under heavy fire from anti-drillers and the seven selfish towns who want to overturn Act 13. Even though the DEP is dedicated to the health and safety of the people and environment in PA, they’re regularly (falsely) accused of colluding with “industry” and throwing both people and the environment under the metaphorical bus. The latest accusations against the DEP stem from the Act 13 lawsuit remanded by the PA Supreme Court back to a lower court. Anti-drillers are doing their best to gut the protections afforded in Act 13 because they want the chance to re-do it and “do it right” (meaning onerous new regulations). And so after the seven selfish towns pulled on one Act 13 thread (zoning) and won, their action now threatens to unravel the entire law (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision).

    Lawyers for the seven selfish towns who are making an attempt to gut the entire Act 13 law in the lower court are accusing the DEP of intentionally suppressing information about contamination of private water wells due to drilling-related activity. The lawyers, along with a sycophantic media willing to regurgitate their claims, say that DEP regulators don’t keep files or issue violation notices to drillers in cases where the driller reaches a private settlement with a landowner. That is, they say it’s a government cover-up of enormous proportions. Which is, of course, preposterous. But it sure sells a lot of newspapers…
    Read More “Lawyers Gutting Act 13 Law Claim PA DEP Covers Up Water Problems”

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    PA DEP Releases 2012 Air Emissions from Drilling/Pipelines Report

    Yesterday the Pennsylvania Dept. of Environmental Protection (DEP) released their annual natural gas drilling emissions inventory data report. The data tabulates air pollution from drilling and pipelines for all of 2012 and came from 56 Marcellus Shale drillers covering 8,800 natural gas wells and from 70 operators of 400 compressor stations, which received gas from Marcellus Shale and traditional oil and gas well sites. Important to note: New to the 2012 report were 250 additional compressor stations that process gas from traditional (not shale) well sites. These compressor stations were not required to report in 2011.

    What does the latest report show? As you might expect, when you drill more wells and move more gas through pipelines, there’s more air pollution. However, the DEP is quick to point out that cumulatively, for all Pennsylvanians, air pollution is down–rather dramatically. Why? Because with more natural gas use in electric generating plants (replacing coal) and as a substitute for diesel fuel, overall pollution drops. Still, as MDN has pointed out on previous occasions, we must keep a close eye on air pollution in heavily drilled areas to ensure residents in those areas are not exposed to unsafe levels of pollutants. Below we have the DEP’s announcement from yesterday, a copy of the 2012 numbers, links back to the 2011 numbers (so you can compare them), and a few more thoughts on drilling and air pollution…
    Read More “PA DEP Releases 2012 Air Emissions from Drilling/Pipelines Report”