Pennsylvania

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

2013 PA Impact Fee Sets Record: $224.5M, Grand Total Now $630M
April 7, 2014April 7, 2014

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”
Anti-Drilling/Fossil Fuel | Berks County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Processing Plants

0.0024 of Berks County Population Opposes New $1B GTL Plant
April 7, 2014April 7, 2014

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”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Lawyers Gutting Act 13 Law Claim PA DEP Covers Up Water Problems
April 4, 2014April 4, 2014

The 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”
Air Quality | Industrywide Issues | Pennsylvania | Research | Statewide PA

PA DEP Releases 2012 Air Emissions from Drilling/Pipelines Report
April 4, 2014April 4, 2014

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”
Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline
April 4, 2014April 4, 2014

It appears the PA Supreme Court’s ill-fated decision to toss out zoning provisions in the Act 13 drilling law is now affecting more than just drilling. Sunoco Logistics is trying to build a new natural gas liquids (NGL) pipeline that spans the state–running from western PA all the way to the Marcus Hook refinery near Philadelphia (see Sunoco Logistics Planning Second Mariner East Pipeline for NGLs). MDN reported in January that Sunoco Logistics has a lot riding on a court case in Washington County, PA because they are attempting to use eminent domain to force some landowners to allow the pipeline across their property (see PA Judge Hears Mariner East NGL Pipeline Eminent Domain Case).

We now throw in a new wrinkle for Sunoco Logistics and the Mariner East NGL pipeline: Sunoco Logistics has made a request to the state Public Utility Commission (PUC) to exempt the pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline. Based on the PA Supreme Court decision in December, two Philadelphia state senators say Sunoco Logistics does not have the right to be exempted from local zoning…
Read More “Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline”
Industrywide Issues | Pennsylvania | Seismic Testing | Washington County

Peters Twp School Board Votes Down Seismic Testing
April 3, 2014April 3, 2014

Peters Township in southwestern Pennsylvania is one of the seven selfish towns that challenged the Act 13 oil and gas law passed a few years ago–and won (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). What did they win? The state is in disarray and doubt about the future of the $200 million plus per year collected from Marcellus Shale drilling, thanks to Peters and the other litigious towns. The “selfish seven” believe their own local zoning boards with no geologists or oil and gas experts are better equipped to handle complex matters of oil and gas drilling than the geologists and experts who work for the state Dept. of Environmental Protection. The very definition of hubris.

So it should come as no surprise that the Peters school board has just voted to deny a request by a seismic company to run some wires across school property to conduct seismic testing and mapping of what lies below not only the school’s property, but the land neighboring the school’s property…
Read More “Peters Twp School Board Votes Down Seismic Testing”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA Farm Bureau Joins Chorus Against Chessy on Royalty Issue
April 3, 2014April 3, 2014

The Pennsylvania Farm Bureau is adding its considerable weight behind the effort to pass new legislation that will guarantee landowners in the state don’t get shafted by companies like Chesapeake Energy when it comes to royalty payments. As MDN has previously reported, the royalty situation in PA has turned messy with claims that Chesapeake Energy has engaged in an elaborate scheme to pass post-production costs on to landowners–costs they technically don’t have a right to deduct (see Chesapeake Shafting Landowners out of Royalties Mess Gets Messier). What it means is that some landowners are getting peanuts–far below the state mandated 12.5% minimum royalty.

The Farm Bureau is up in arms because its members are up in arms–and so the organization is pushing for new legislation to plug the loophole that Chesapeake (and maybe others) are apparently exploiting…
Read More “PA Farm Bureau Joins Chorus Against Chessy on Royalty Issue”
Chester County | Industrywide Issues | Pennsylvania | Pipelines

Pipeline Information Website for Chester County, PA Goes Live
April 3, 2014April 3, 2014

Lynda Farrell and her husband Steve, landowners in Chester County, PA (near Philadelphia) first learned of pipelines in 1992 when a pipeline close to their home was excavated to check for a leak. In 2008 Williams informed the Farrells and their neighbors they wanted to expand a pipeline in their area (you can see where this is going). In 2011, Lynda, tired of not having good information about what pipelines were where, and who’s planning what, started a non-profit called the Pipeline Safety Coalition.

Lynda’s efforts have borne fruit. Chester County, where she lives, has just launched a Pipeline Information Center complete with interactive maps of where existing pipelines are located, who owns them, and more. Lynda is now on a mission to get the other 66 PA counties to do the same thing. While we suspect Lynda considers herself to be against shale drilling and that her motivation in starting the Pipeline Safety Coalition is to whip up public dissent to new pipelines (and thereby shale drilling), we believe she’s done PA residents a good service. The site and the information are very good, and we’re big believers that more information when it comes to drilling and pipelines is a good thing. So, hats off to Lynda…
Read More “Pipeline Information Website for Chester County, PA Goes Live”
Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Taxation | York County

York County Park Getting $150K Upgrade Courtesy Marcellus $
April 3, 2014April 3, 2014

Even though there is no Marcellus Shale drilling in York County, PA, residents of the county will get $150,000 of improvements to a county park courtesy of Marcellus Shale drilling. MDN sees at least two or three of these kinds of stories–every week. We ignore most of them, but every now and again we bring you one of them to remind you of what the state is about to lose thanks to the “selfish seven” townships that sued the state to gut the Act 13 Marcellus drilling law–a law that provides for an impact fee that raises over $200 million per year that is distributed throughout the state–some of it in places like York County.

Here’s the story of the $150,000 upgrade coming to a York County park courtesy the drillers and landowners out of whose pockets the money comes…
Read More “York County Park Getting $150K Upgrade Courtesy Marcellus $”
Allegheny County | CNX Resources | CONSOL Energy | Energy Companies | Pennsylvania

CONSOL Gets FAA Clearance for Take Off with Pitt Airport Drilling
April 2, 2014April 2, 2014

Really good news for CONSOL Energy and their CNX Gas subsidiary: The Federal Aviation Administration (FAA) has given their blessing for CONSOL’s plan to drill at Pittsburgh International Airport. Not only has the FAA granted it’s approval, so too has the federal Environmental Protection Agency, the U.S. Fish & Wildlife Service, the Federal Highway Administration and the U.S. Army Corps of Engineers.

For more than a year CONSOL has been working on a plan that will please everyone so they can drill on Pittsburgh Airport property–a plan that the Airport hopes will ultimately net them $1 billion or more (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). Just about every letter in the alphabet soup of Washington, DC agencies has now reviewed and approved CONSOL’s plan to drill at the Pittsburgh Airport. So, can we get drilling already?!…
Read More “CONSOL Gets FAA Clearance for Take Off with Pitt Airport Drilling”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Taxation

Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed
April 2, 2014April 2, 2014

In a letter to the editor published (amazingly) in the Pittsburgh Post-Gazette, Consumer Energy Alliance Mid-Atlantic executive director Mike Butler points out, in just a few paragraphs, the grave danger now hovering over Pennsylvania because of the PA Supreme Court’s poor decision to side with seven selfish towns to overturn important and large portions of the Act 13 law, and in danger from PA Democrats who want to stop all future Marcellus drilling in the state with an ongoing moratorium.

Pennsylvania is at a crossroads and if her citizens choose poorly in the next election, they risk plunging the state into an economic disaster, as eloquently pointed out by Mr. Butler:
Read More “Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Pennsylvania | Regulation

New Hearing Dates for Hilcorp’s Forced Pooling Request in PA
April 1, 2014April 1, 2014

Last October MDN told you about Hilcorp’s request to force some Pennsylvania landowners in Lawrence County, PA to allow Hilcorp to drill under (not on) their property in the Utica Shale layer (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner). After much tooing and froing, the PA courts told the Dept. of Environmental Protection (DEP) that the DEP would need to make the decision (see Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling). The DEP set a public hearing for March 25 & 26 in Lawrence County, and then postponed it (see Hilcorp Forced Pooling Hearing Postponed, More Landowners Added).

We finally have final final final hearing dates from the DEP–May 7 & 8. Here’s the lowdown from the DEP, in which they say the hearings will be conducted “like a trial”…
Read More “New Hearing Dates for Hilcorp’s Forced Pooling Request in PA”
Lease & Royalty Payments | Pennsylvania | Statewide PA

PA’s “Secret” Deal to Lease Land Under Rivers & Streams (Gasp!)
April 1, 2014April 1, 2014

Pssst. We need to whisper this news, because no one is supposed to know. Those nefarious Republicans in Harrisburg, PA have been (gasp) leasing land underneath rivers and streams to those nasty, evil shale drillers–shameless Republican mooks. And such leasing has brought in $5.9 million into the coffers of the state for politicians to redistribute.

So says the reliably anti-drilling StateImpact Pennsylvania–which is really just a couple of NPR reporters that issue their anti-drilling views via a website. The state, since 2012, has leased more than 1,000 acres under rivers and streams for $4,000 per acre signing bonus, and when/if drilling happens, 20% royalties. Pretty darned good deal if you ask us. So has Gov. Tom Corbett been hushing this up, keeping it a secret?…
Read More “PA’s “Secret” Deal to Lease Land Under Rivers & Streams (Gasp!)”
Butler County | Energy Companies | Pennsylvania | Rex Energy

Rex Predicts Record 1Q14 Production, Bank Floats Extra $50M
April 1, 2014April 1, 2014

Rex Energy’s banker apparently likes what it sees in the State College, PA-based Marcellus/Utica driller, so they’ve decided to raise Rex’s line of credit another $50 million (from $325 million to $350 million). And what’s not to like? Rex reported last week that they expect first quarter production to come in near the high end of their previous guidance numbers–close to the 118 million cubic feet per day number. Last week Rex also announced they’re adding a second drilling rig in their Butler, PA operation–and (most exciting to us) they’re drilling two stacked Upper Devonian Burkett/Marcellus tests in 2014, one of them with the new rig they’ve just added.

Here’s a pair of announcements from Rex, the operational update from last week and the good news from Rex’s banker from yesterday…
Read More “Rex Predicts Record 1Q14 Production, Bank Floats Extra $50M”
Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Judge Lets PA Anti-Driller Sip More Lattes, Attorney Claims “Big Win”
March 31, 2014March 31, 2014

Last Monday a little known anti-driller with a potty mouth from northeast PA–Vera Scroggins–had her day in court. You may recall that Vera had repeatedly trespassed on drilling sites owned by Cabot Oil & Gas in Susquehanna County and a judge slapped her with a restraining order last year. Vera said the court order prevented her from sipping lattes at the local Price Chopper grocery store (land leased by Cabot) so she got herself a lawyer from the American Civil Liberties Union and asked the judge to reconsider (see PA Anti-Drilling Activist Asks Court to Lift Cabot Restraining Order). Cabot had no objections as long as she’s still barred from active drill sites and Cabot offices. So the judge, late last week, did just that–he tweaked the restraining order to allow Vera to go sip her lattes, but nothing else has changed. That is, she’s still barred from trespassing on active drill sites and Cabot office property.

One of Vera’s attorneys claims the judge’s decision is a “big win.” Er, OK. Whatever. What Vera actually won was exactly nothing, except another 5 minutes of “fame” in local media around Montrose–population 1,617…
Read More “Judge Lets PA Anti-Driller Sip More Lattes, Attorney Claims “Big Win””
Chenango County | Energy Services | Industrywide Issues | New York | Otsego County | Pennsylvania | Pipelines | Regulation | Schoharie County | Susquehanna County | Williams

JLCNY Encourages Support of Constitution Pipeline — This Week
March 31, 2014March 31, 2014

MDN has done a fair bit of reporting on a desperately needed new natural gas pipeline due to be built from Susquehanna County, PA all the way to Schoharie County, NY. The Constitution Pipeline will be built by Williams starting later this year, if all goes according to plan (see New Marcellus Constitution Pipeline Announces “Final” Route). Last week MDN told you that both the federal EPA and Dept. of Interior have asked for more time to provide their own comments on the new pipeline (see EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline). FERC, the Federal Energy Regulatory Commission, has itself told Williams they will need to make a few adjustments to their plans (see FERC: Constitution Pipeline Should Make Changes to Lessen Impacts).

FERC will ultimately decide whether or not to allow Williams to build the pipeline. We doubt there’s much doubt about the plan–it’s almost certain to be built. FERC themselves say it’s really really needed. However, FERC must go through the motions, and one of those motions is to hold public “scoping” hearings where people (often anti-drillers) show up to gripe and moan about the plan. FERC is conducing a series of four hearings this week, starting today. The Joint Landowners Coalition of New York sent the following email (with hearing details) to request members of the JLCNY and all pro-drillers attend a meeting near them, to show support for natural gas in our region…
Read More “JLCNY Encourages Support of Constitution Pipeline — This Week”