Pennsylvania

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    Companies Flock to Blair County, PA to Serve Marcellus Industry

    Blair County, PA (home of Altoona) doesn’t have active Marcellus or Utica Shale drilling. But that doesn’t mean the industry hasn’t been an economic boom for the county. Because it is located at the doorstep of wet gas drilling in southwestern PA, and not all that far from dry gas drilling in northeastern PA, Blair is quickly becoming supply chain central for the drilling industry. In May 2012 MDN told you about a new pump plant setting up in Blair to service the industry (see Altoona Scores a New Pump Plant for the Marcellus). According to the plant manager, 2013 was a banner year and they “exceeded all of our targets and projections.”

    HalenHardy LLC, a company that created and manufactures an innovative mobile air unit to suck silica dust off workers’ clothes, opened in Blair in January 2013. HalenHardy won an award last September for their technology (see HalenHardy Wins Ben Franklin EHS Award for Silica Air Shower). They won a second award for their technology last week–at the Oil & Gas Awards (more on that this week, check back). A second Oil & Gas Awards winner has also set up shop in Blair County–Drill Baby Drill Staffing. Read on to learn about other companies that have located and are now flourishing in Blair County–companies aimed at providing products and services for the Marcellus Shale industry…
    Read More “Companies Flock to Blair County, PA to Serve Marcellus Industry”

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    PPG Blesses Deer Lakes Park Drilling in Allegheny County, PA

    Stop Press! The Pittsburgh Post-Gazette editorial board has blessed the proposed deal to drill under (not on) Deer Lakes Park in Allegheny County, PA. Last Thursday MDN told you how County Executive Rich Fitzgerald got even more money out of Range Resources than originally proposed (see Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal). Anti-drillers are squawking (what’s new?). However, the increasingly anti-drilling Pittsburgh Post-Gazette endorsing the deal? Now that IS news!

    Here’s what they wrote in today’s editorial…
    Read More “PPG Blesses Deer Lakes Park Drilling in Allegheny County, PA”

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    Protesters Shut Down Anadarko Drill Site in Lycoming County, PA

    confessions of an eco-terroristThe very twisted philosophy of so-called “Earth First” group members seems to be that humans are an infestation on Mother Earth, hence the name (full of self-loathing people, apparently). A group of Earth Firsters, most of them not from Pennsylvania, protested and shut down an Anadarko Petroleum drilling site in PA yesterday. Anadarko owns leases land in the Tiadaghton State Forest in Lycoming County, PA where they have an active drilling site (near Williamsport). Three of the protesters locked themselves to a solid concrete pipe embedded with shrapnel that reached across the road blocking the way to the drill site. The protesters had to be cut free at great personal danger to themselves and the first responders who cut them free. Five protesters in all were arrested.

    MDN received exclusive photos from someone at the scene (below). We’ve also located a video showing the shrapnel embedded in a solid concrete pipe–and the gentle care the local first responders took in protecting the protesters as they cut them free. First responders put their own lives at risk to free these idiots. We would have been far less gentle (picking the whole thing up with a forklift and dropping it on the side of the road–with these kooks attached–comes to mind). Read the news, look at the photos, and be sure to watch the video below to see what we’re up against with extreme Earth First nutters…
    Read More “Protesters Shut Down Anadarko Drill Site in Lycoming County, PA”

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    PA Shale Industry Demonized for “Lack” of Severance Tax

    The Democrats in Pennsylvania are bound and determined to impose a nosebleed severance tax on shale drilling in the state. Their latest effort comes from the partisan so-called Independent Fiscal Office, a branch of the state legislature, that just released an apples to oranges comparison of PA with other states claiming PA doesn’t pay as much in taxes as those other states. Of course what the very flawed analysis by the IFO doesn’t show are all of the other taxes and fees in PA not levied in those other states that more than make up for the “lack” of a severance tax.

    PA Dems seem to have the philosophy that 100% of the money earned by other people (drillers in this case) belongs to the state (i.e. them) for redistribution purposes, and how dare the industry oppose them from extracting 5%, or preferably 10%, right off the top (see PA State Treasurer Rob McCord Unveils Gas Death Plan). Here’s the latest salvo in the PA Dem war to regain the governor’s chair this November by demonizing the shale industry as not paying their “fair share”…
    Read More “PA Shale Industry Demonized for “Lack” of Severance Tax”

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    Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone

    Oh oh. It appears one hand does not know what the other is doing. Last week a new series of small earthquakes–barely able to be felt, but there all the same–rumbled through the Mahoning Valley–near Youngstown, OH. Because of injection well related earthquakes near Youngstown two years ago, residents are understandably jittery and wonder if the drilling industry is somehow at fault with this new outbreak. So the Ohio Dept. of Natural Resources (ODNR), out of what they call “an abundance of caution,” asked Hilcorp to stop all drilling and fracking activity in the area (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?).

    Hilcorp readily complied. We’ve discussed (endlessly) that fracking simply does not cause earthquakes–injection wells can and have caused earthquakes, when injecting fluid over an active fault. However, it’s best to play it safe in this situation. Two days after the earthquakes and Hilcorp’s cessation of drilling in Mahoning County, the Pennsylvania Dept. of Environmental Protection (DEP) awarded Hilcorp permits to drill seven new horizontal shale wells in Lawrence County, PA–about six miles from where they stopped drilling over the border in Ohio. Oops…
    Read More “Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone”

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    Williams Pipeline Connection in NEPA Leaks Brine Near Local Lake

    A Williams pipeline in Susquehanna County, PA used to carry brine (salty water from the depths that comes out long after fracking is done and over) was found leaking earlier this week. A pipeline interchange leaked an unspecified amount of brine and left what appeared to be a copper-colored dust over land owned by the Loomis Lake Association.

    The Lake Association is understandably concerned that some of the brine may have leaked into the lake itself. Daily testing is underway to determine if the brine reached the lake. Williams has cleaned up the leftover dust–and the PA Dept. of Environmental Protection is investigating. No one is panicking, but everyone is on high alert and keeping a close eye on the situation…
    Read More “Williams Pipeline Connection in NEPA Leaks Brine Near Local Lake”

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    Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal

    In December MDN told you that Allegheny County, PA was close to a deal with Range Resources to all drilling under (not on) Deer Lakes Park (see Range’s Big Money Deal to Drill Under Deer Lakes Park in SW PA). The deal at that time called for a $3.5 million signing bonus and a royalty of 17%, meaning over time the county stands to gain something like $70 million.

    The final deal has been struck between Range and County Executive Rich Fitzgerald. That old Rich, he’s wily and a tough negotiator. The final deal is a $4.7 million signing bonus and 18% royalties. Now it’s up to the Allegheny County Council to approve it. Let’s see–$70 million+ on one hand with no environmental impacts, or please a few loud-mouthed hippies who watched Gasland and don’t want us to drill. Tough decision…
    Read More “Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal”

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    MSC Launches Shale Advocates – An Army of Shale Volunteers

    The Marcellus Shale Coalition (MSC) is the premier organization of its kind for promoting shale drilling in the Marcellus Shale. Headquartered in Pittsburgh, the MSC has some 300 members and associate members–a veritable Who’s Who in Marcellus drilling. All of the big boys (drillers and midstream companies) and many of the smaller ones belong. The MSC has enormous influence with lawmakers and does a great job with publicity for shale drilling. Just one thing missing–and that’s a way to involve people who “advocate” or support shale drilling but don’t necessary work in the industry or belong to the MSC. How to enlist the help of the army of volunteers who would be willing to spread the word to family and friends–and perhaps nudge their local political officials–to support responsible shale drilling?

    The MSC has the answer. Yesterday they launched a new initiative and website called Shale Advocates (www.shaleadvocates.com) that encourages shale supporters–no matter where they are and who they are–to help write letters and emails, and even call, political officials. It is a way to focus the efforts of the vast army of volunteers who support shale energy–a force for good. And frankly, a force for reason in an age of unreason. Here’s more on the new Shale Advocates movement and what the MSC aims to do by launching it…
    Read More “MSC Launches Shale Advocates – An Army of Shale Volunteers”

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    PA State Treasurer Rob McCord Unveils Gas Death Plan

    Poor old “Pass a Joint for John” Hanger dropped out of the race to be the Democrat nominee for governor in PA. Who will be next? Apparently not State Treasurer Rob McCord. Get this, he’s just released an utterly brilliant natural gas plan–tax the whole darned thing 10%…on everything produced. According to McCord, that will raise $1.63 billion for the state in just the first year.

    Of course the plan is, in reality, utterly brain dead and moronic. If such a plan were ever to see the light of day it would effectively kill all shale drilling in the state. Done. Finished. Over. And then instead of the $200 million+ PA now extracts in a reasonable impact fee–they would get nothing. How on earth do these people keep getting elected to office? Here’s more of the moronic McCord gas death plan:
    Read More “PA State Treasurer Rob McCord Unveils Gas Death Plan”

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    PA Game Commission Stops Promotion of Moonlighting Staffer

    Last week MDN told you about the moonlighting head of oil and gas leasing for the Pennsylvania Game Commission and his impending promotion (see PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission). The independent 8-member board that runs the commission was about to promote William A. Capouillez to the top job of executive director. Capouillez manages the Commission’s 1.4 million acres of land for leasing by day, but in his off hours he assists private landowners with leasing their land to some of the same companies he brokers deals with during his day job. In other words, it has the appearance, if not the realistic possibility, for a conflict of interest.

    Gov. Tom Corbett put the breaks on Capouillez’s promotion. He also put the breaks on a deal the Game Commission had cooked up to give it’s outgoing executive director a $220,000 severance package. (Hey, where do we sign up to be members of the PA Game Commission board?) Yesterday the Game Commission said they would not promote Capouillez and they have put a stop payment on the $220K check to outgoing director Carl Roe due to objections from the governor…
    Read More “PA Game Commission Stops Promotion of Moonlighting Staffer”

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    Leatherstocking to Tap Constitution Pipeline for Local Deliveries

    Rural residents (and an aerospace manufacturer) located in New York’s Southern Tier and Central New York areas have a lot to be thankful for with the upcoming Constitution Pipeline–a natural gas pipeline that will deliver natural gas from the Marcellus Shale gas fields of Susquehanna County, PA all the way to two major interstate pipelines near Schoharie, NY (see New Marcellus Constitution Pipeline Announces “Final” Route). Williams is building the 124-mile pipeline with backing from Cabot Oil & Gas, whose gas will flow through it.

    However, a regional gas pipeline company (think gas utility) founded just a few years, Leatherstocking Gas, will tap into the Constitution at (so far) four different locations along the pipeline so they can deliver that homegrown Marcellus gas to rural customers who are not being served by the big utilities like New York State Electric & Gas (NYSEG, owned by Iberdrola). Yesterday Williams and Leatherstocking announced the deal to tap into the Constitution Pipeline in four locations…
    Read More “Leatherstocking to Tap Constitution Pipeline for Local Deliveries”

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    Small Marcellus Drill Cuttings Company Gobbled Up by Bigger Fish

    A small and rapidly growing company–Susquehanna Services, Inc.–uses a special process to safely process and dispose of drill cuttings (leftover rock and dirt) from shale drilling in the Marcellus, Utica and Green River (WY) shale plays. The company was founded in 2010 (near Scranton, PA) and it’s been nothing but rapid expansion ever since. The founder and president of Susquehanna Services, John Yarosz, has just realized his American Dream. His company was bought out by a bigger fish: Specialty Waste Operating Partners. Yarosz will stay on as president and continue to run the operation day to day–at least for now.

    Here’s the press release announcing the deal:
    Read More “Small Marcellus Drill Cuttings Company Gobbled Up by Bigger Fish”

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    PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684

    The Pennsylvania chapter of the National Association of Royalty Owners (NARO) sent out a flash alert email yesterday asking members to contact their state representatives to encourage a “yes” vote on House Bill (HB) 1684–the Guaranteed Minimum Royalty Act. This bill is partially in response to the apparent gouging Chesapeake Energy has done with respect to royalty payments. A vote may come as early as TODAY.

    Here is the text of the email from PA NARO president Jackie Root:
    Read More “PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684”

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    Pittsburgh TODAY’s CSSD Propaganda Piece – Gag Me with a Spoon

    like gag me with a spoonA masterful piece of propaganda written by Pittsburgh TODAY appears on the Washington Observer-Reporter website promoting the so-far underwhelming Center for Sustainable Shale Development (CSSD). The CSSD, announced exactly one year ago this week, is a joint effort between a few big drilling industry players and a few environmentalist organizations–an uneasy partnership created to make shale drilling palatable to crazy anti-drillers (see Important: Drillers & Enviros Form New Group, Launch Cert Program). If we might summarize, the article about the CSSD on the anniversary of its debutante ball adopts the the classic “against all odds” storytelling formula.

    According to PT, the CSSD is the story of a (very few) brave men and women who dared to buck the odds and sit down at the table to discuss their differences on shale drilling–people from both the industry and (more importantly of course) from environmentalist wacko groups. These brave men and women faced challenges, both internal (they agonized in their souls, am I selling out?) and external (they fought their own organizations and their brethren in other companies/green organizations). Against all odds, they stuck to it, found “common ground” (i.e. industry caved), and in the end, they “hammered out” 15 standards that if adopted (at extreme cost by the industry) will mean precious Mother Earth will survive this nasty, filthy activity called shale drilling after all. The End.
    Read More “Pittsburgh TODAY’s CSSD Propaganda Piece – Gag Me with a Spoon”

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    NatGas Replaces Coal to Generate Electricity in Steamtown USA

    Coal has been a fixture in the Scranton/Wilkes-Barre area for generations. It is so much a part of the fabric of the community that there is a National Park smack in the middle of downtown Scranton called Steamtown National Historic Site. Railroad engines used to run on coal back in the day–so it figures Scranton was a major nexus for trains–the city was really the coal capital of the northeast. So when natural gas displaced coal at a 50 year-old coal-powered electrical generating plant south of Wilkes-Barre a few years ago, that was interesting and noteworthy. The Hunlock plant was converted to run on natural gas by installing two new turbines. The waste heat from the new turbines now powers the old/original turbine once powered by heat from burning coal. It’s called “combined cycle” electric generation and it’s happening across the United States.

    The Obama EPA has demonized coal to the point that electric generating plants are switching (by necessity) to natural gas in large numbers. Hey, *something* has to create electricity–a very small scintilla of electricity comes from so-called alternative sources like wind and solar. Fossil fuels will, for generations to come, bear most of the burden when it comes to creating the electricity that powers your smart phone, lights, and your (*cough*) electric car. That’s the stark reality. The following article is an intriguing look at how utilities convert aging coal-fired electric plants into less-polluting, more efficient natgas-fired plants–in this case plants that run on Marcellus Shale gas…
    Read More “NatGas Replaces Coal to Generate Electricity in Steamtown USA”

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    PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan

    Another hypocritical PA House Democrat takes a potshot at the sitting Republican governor over the issue of drilling in PA state forests. As you may recall, Gov. Tom Corbett included a plan to raise $75 million for the state budget by allowing a bit more drilling than there already is in state forests (see PA Gov. Corbett’s Bold Plan for More Drilling in State Forests). The $75 million he would raise is out of a $29.4 BILLION budget–or exactly 0.00255 of the budget. Essentially a rounding error. And yet, hypocritical Democrats like State Rep. Greg Vitali (Delaware County, PA) chairman of the Pennsylvania House Environmental Resources and Energy Committee, continue to heckle Corbett over that $75 million (see his letter below).

    Here’s the hypocrisy that needs to be thrown right back in Vitali’s face: His committee previously approved plans that allowed then-Gov. Ed “Fast Eddie” Rendell (a Democrat) to raise $444 MILLION from doing the very same thing! It was only after Fast Eddie had his cash that he closed down drilling in state forests with an executive order. Corbett had the guts to lift that order and ask for another $75 million on non-invasive, under the ground (not on the surface) drilling to raise some more money for the budget, and the Dems throw a hypocritical cow. Shame on them…
    Read More “PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan”