Pennsylvania

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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”

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    Pass One Last Joint for John Hanger

    John Hanger, the former Secretary of the PA Dept. of Environmental Protection under Gov. Ed Rendell, withdrew from the Democrat primary for governor last week. John is an “all of the above” kind of guy–in favor of wind and solar as much as natural gas. He’s also a very left-leaning liberal, in favor of legalizing pot smoking in the Keystone State. A few months ago we coined the phrase “pass a joint for John,” to, you know, give his campaign a boost (see PA Gov. Corbett’s Bold Plan for More Drilling in State Forests).

    But our best efforts to give John a boost apparently fell short. John supports restrictions on shale drilling. He even refused to denounce the crazies in his own party who want to ban all new Marcellus drilling (now part of the PA Democrat Party’s official platform, see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). Even so, the crazies just couldn’t stomach someone like John who gives even the smallest credence to fossil fuels. So John is now out of the running. He should have concerned himself more with the wacko left in his own party rather than repeatedly rail against the Tea Party…
    Read More “Pass One Last Joint for John Hanger”

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    Will Scranton/Wilkes-Barre Ever See Marcellus Drilling? Depends

    Both Lackawanna and Luzerne counties in northeastern Pennsylvania have been largely drill-less when it comes to the Marcellus Shale bonanza happening all around them. One reason is that both counties are urban–Lackawanna is home to the city of Scranton, and Luzerne home to Scranton’s twin-joined-at-the-hip Wilkes-Barre. However, the bigger reason why there has been no gas drilling is because of the geology under both counties. A few test wells have been drilled in the past–all of them unsuccessful.

    Does that mean that all Marcellus drilling in Lackawanna and Luzerne will be barren forevermore? Not necessarily…
    Read More “Will Scranton/Wilkes-Barre Ever See Marcellus Drilling? Depends”

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    Update on Project Using Marcellus $ to Treat PA Acid Mine Water

    Late last year MDN brought you the story of how $1 million of Marcellus Shale Act 13 impact fee money (about to dry up thanks to seven PA litigious townships) was awarded as a grant to help fund a project that will clean up one of PA’s biggest ongoing environmental disasters and the single largest source of pollution for the Chesapeake Bay–acid mine drainage from the Old Forge borehole near Scranton, PA (see Specifics on Marcellus $ Helping to Clean Chesapeake Bay Pollution). Susquehanna Mining Solutions plans to build a plant to strip out the minerals from the water that comes from long-abandoned coal mines.

    A quick update on the project:
    Read More “Update on Project Using Marcellus $ to Treat PA Acid Mine Water”

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    PA Environmental Council Appoints New Leader, Ties to CSSD

    The mostly anti-drilling Pennsylvania Environmental Council has a new leader. We say “mostly” in deference to being corrected by the PEC a few years ago when we called them outright anti-drilling (see Pennsylvania Environmental Council Publishes New “Green Lease” Guide). On Friday the PEC named Davitt B. Woodwell to the position of president and chief executive officer, succeeding Paul M. King, who is retiring. The PEC is not dogmatically opposed to Marcellus drilling like many similar organizations in the environmentalist movement. The PEC at least allows there will be some drilling (they’re pragmatic). But make no mistake–they really wish there was no shale drilling in the state. They wouldn’t say that out loud in polite company–but that’s what they think and talk about behind closed doors.

    The newly promoted Mr. Woodwell is a participant in the so-far underwhelming Center for Sustainable Shale Development (CSSD)–an uneasy partnership between the shale drilling industry and environmentalists (see CSSD’s Andrew Place Talks About 3-Leg Approaches & Firehoses). Woodwell belongs to the Standards and Evaluation Committee of the CSSD. We’ll keep a close eye on the PEC and Mr. Woodwell for signs of Marcellus trouble-making. Meanwhile, here’s Friday’s announcement and brief bio (with lots of enviro-cred) for Mr. Woodwell:
    Read More “PA Environmental Council Appoints New Leader, Ties to CSSD”

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    Shell’s Shale Pessimism Signals Worry for Some re PA Cracker

    The Shell emotional roller coaster continues to gyrate up and down when it comes to the fate of a multi-billion dollar ethane cracker plant previously announced by Shell for Beaver County, PA. We knew it would be a years-long process just to make a decision, and told you that two years ago almost to the day (see Shell’s Cracker Plant Actually “Years Away”?). Since that time it seemed at one point like all was lost (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). Over the past two years we’ve written dozens of stories, at first it seemed like a sure thing, then it wasn’t, then it was again, then it wasn’t again… you get the idea (see our list of Shell cracker stories here).

    According to a Morningstar analyst interviewed by the Pittsburgh Post-Gazette, the pendulum has now swung back to the pessimistic side again in light of Shell CEO Ben van Beurden’s comments yesterday knocking U.S. shale (see our companion story today). van Beurden said Shell is triming back on U.S. shale investments this year, “restructuring” those assets (which is CEO talk for selling a good portion of it). Although the ethane cracker will be fed by Marcellus and Utica Shale gas, Shell’s impotence when it comes to turning a profit from shale drilling doesn’t mean they will walk away from a huge petrochemical plant. Such big projects are what they think they’re best at doing. Still, van Beurden’s comments have at least one analyst wondering if the PA cracker plant is now down the list of Shell’s priorities…
    Read More “Shell’s Shale Pessimism Signals Worry for Some re PA Cracker”

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    Chesapeake Shafting Landowners out of Royalties Mess Gets Messier

    Corporate raider Carl Icahn is likely developing a case of heartburn over his investment in Chesapeake Energy. He’s been responsible for cutting thousands of jobs and selling off billions in assets at Chesapeake, but there is a developing situation he can’t control that will definitely affect his pocketbook. Pennsylvania’s landowners are up in arms over what they perceive to be theft of their royalty payments by Chesapeake Energy. We told you about the recent rally in Bradford County, and about Gov. Corbett and others who invited PA’s anti-drilling Attorney General, Kathleen Kane, to get involved (see Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans). It’s now a royal mess and likely to get messier as time goes on.

    The sorta short version of the story is this: A few years ago Chesapeake was hammered by bad press (because the media hates Aubrey McClendon, then CEO). Chessy’s stock tanked and with lots of debt, McClendon couldn’t find any more money to borrow at a reasonable rate. So McClendon invented a clever scheme to re-interpret leases that would allow Chessy to deduct certain pipeline fees from landowner royalties. The expenses would be paid to Access Midstream (spun off from Chesapeake) in return for Access giving Chessy a big, fat pile of cash/investment. The inflated pipeline fees paid to Access–now deducted from royalty checks–would generate enough revenue for Access to recoup their investment in Chessy. It was a clever way of extracting money from landowners by doing it through the intermediary of a pipeline company. At least that’s the theory spun by the anti-drilling ProPublica/Daily Beast. Is it true?…
    Read More “Chesapeake Shafting Landowners out of Royalties Mess Gets Messier”

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    PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission

    Last August MDN told you about the moonlighting PA Game Commission employee, William A. Capouillez, the director of the Bureau of Wildlife Habitat Management at the Game Commission (see PA Director of Game Commission Double-Dipping with Gas Leases?). Capouillez’s day job is to oversee leasing 1.4 million acres of public game lands for oil and gas drilling. But in his off hours he negotiates leases for oil and gas drilling for private landowners–sort of an “on the side” landman. When it all came to light in the *Philly Inquirer* last year, it prompted an ethics investigation (see PA Game Comm. Head Not Afraid of Gas Leasing Ethics Investigation).

    How’s the investigation going? No one will say. However, the PA Game Commission is considering promoting Capouillez to the top job of executive director. PA Gov. Tom Corbett (Republican) isn’t impressed. In fact, he’s sent a warning shot across the bow of the independent 8-member board of the Commission, saying he will actively work to block the promotion…
    Read More “PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission”

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    Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport

    More than a year ago the Pittsburgh International Airport, located about 20 miles west of downtown Pittsburgh, elicited bids to have shale drilling done on 9,263 acres of airport-owned land. After some toing and froing, CONSOL Energy was awarded the contract. After some more toing and froing, CONSOL raised the lease signing bonus to 50 million smackeroos (see CONSOL Increases Bonus Offer to Pgh Airport by 2.4 Times to $50M). Then the real work began. CONSOL has put together a plan to drill 47 wells on 6 well pads, building three water impoundments (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). CONSOL is going to extraordinary lengths with the airport project, including the use of all-electric drilling rigs (a first in the Marcellus). Problem is, three people on the Findlay Township board have the power to approve, or not, the permits to drill. Findlay has CONSOL by the proverbial short hairs, especially since the right to zone oil & gas activities by local municipalities was upheld when the Act 13 law was trampled by seven PA towns that sued and won in state Supreme Court–a decision handed down just a few months ago.

    Last night CONSOL presented their safety plan to the three Findlay board members and interested local residents who attended the board’s regular meeting. The bone of contention (for some local residents) is the location for one of the proposed drill pads–about a half mile from a populated neighborhood. When the hour plus presentation by CONSOL was over, and local residents had had their say, the Findlay board members decided to postpone a decision to approve CONSOL’s permits, yet again…
    Read More “Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport”

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    Forced Pooling Circus (ie Hearing) Coming to Lawrence County, PA

    The circus will come to town in New Castle (Lawrence County), PA on March 25 and 26. No, not Ringling Bros. and Barnum & Bailey, but something sure to be far more entertaining. There will be a PA Dept. of Environmental Protection hearing on Hilcorp’s request to force four landowners to allow drilling under their property. We first brought you this story last October (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner). MDN has always held a dim view of forced pooling, so you can’t say we didn’t warn them. Hilcorp has brought this on themselves by invoking a 1961 PA law to sue the landowners to allow drilling.

    Here’s the latest, including details on where the circus, er, hearing will be held…
    Read More “Forced Pooling Circus (ie Hearing) Coming to Lawrence County, PA”

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    Earth to Mars (School District) – Time to Check into Funny Farm?

    We wonder what they teach at the Mars Area School District (Butler County, PA). One thing they don’t teach is logic and scientific inquiry. Probably too busy showing American Idol re-runs to the kiddies to bother with heftier education pursuits. How else can you explain a school board, and parents, who turn down $1 million+ to lease 175 acres of school land for shale drilling that would happen more than a mile below solid rock with no adverse affects and with no surface disturbances? We’d call it mass insanity (time to check into the local psychiatric hospital)–but that would be unkind.

    Tuesday night the Mars Area School District school board voted 9-0 to reject an offer from Rex Energy to lease the school’s property, which sits next to private property Rex has already leased and will still drill on anyway. The Rex offer was $4,000 per acre up front as a signing bonus, and another $330,000 in advance royalties, for a grand total of $1 million. Drilling will go on all around the school, but those sharp-as-a-tack board members have now denied the children $1 million they could of had. Hey, it’s always for “the children,” right? Heartless board. The anti-drillers present for the vote were positively orgasmic that the school board voted it down unanimously. Go figure…
    Read More “Earth to Mars (School District) – Time to Check into Funny Farm?”

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    Noble Energy’s Huge Vote of Confidence in the Marcellus

    Noble Energy has big plans for the Marcellus. Yesterday the company confirmed they will be new tenants in a huge new office building going up in the Southpointe business park near Pittsburgh. The new building being built by Horizon Properties will be 208,000 square feet, of which Noble is leasing 138,000 square feet. Noble’s president & CEO David Stover says the Marcellus is “the premiere gas play in the United States,” and the Marcellus figures prominently in Noble’s future plans.

    Noble plans to employ 200 people in the new facility by the end of this year, and eventually–400-450 people at the facility. PA welcomes Noble to the Marcellus!…
    Read More “Noble Energy’s Huge Vote of Confidence in the Marcellus”

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    DRBC Selects Steve Tambini as New Leader, Enviro Groups Unsure

    Steve TambiniIt is the end of an ignominious era. Carol Collier, whose own anti-drilling views have stopped any forward progress on potential Marcellus Shale drilling in the Delaware River Basin, will tomorrow leave the Delaware River Basin Commission (DRBC) that she has headed for 15 years. Last September when she announced she would retire this March, we predicted her platitudes about finalizing draft shale drilling plans would go nowhere. We were right (see DRBC Director Carol Collier Announces Her Retirement). It’s now goodbye and good riddance.

    In Collier’s place as the new executive director of the DRBC is Steven J. Tambini, currently vice president of operations at Pennsylvania American Water. Steve has been a water guy for over 30 years with lots of experience in water supply engineering and water resource planning. He will take over on August 1st. Until then, Steve is not saying much. The Marcellus Shale Coalition says they’re looking forward to working with Tambini to craft common sense regulations that will allow shale drilling in places like Wayne County, PA. The rabidly anti-drilling Delaware Riverkeeper organization says they don’t know Tambini. Translation: “He’s not one of us.” Which may indeed be a good sign…
    Read More “DRBC Selects Steve Tambini as New Leader, Enviro Groups Unsure”

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    Fascinating Look Behind the Curtain of the Phila. Gas Works Deal

    Last week MDN told you about the potential sale of the country’s largest municipal-owned natural gas utility–the Philadelphia Gas Works (PGW)–to Connecticut utility company UIL (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). The law firm that structured and brokered the deal says that while the legal aspects were complicated, the legal aspects were the “easy” part. The hard part? The coming political buzz saw from selling the city-owned asset (an asset that’s been losing money for forever under city ownership). Labor unions are actively opposing the sale, afraid it will mean layoffs.

    Why buy a money loser? According to the lawyer in charge of the deal, Gregory L. Seltzer, UIL wanted to buy PGW for three reasons…
    Read More “Fascinating Look Behind the Curtain of the Phila. Gas Works Deal”

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    Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV

    Socialists and hardened anti-drillers are trying a new approach. Adopt non-partisan sounding names, like the “Pennsylvania Budget and Policy Center,” “Policy Matters Ohio,” and “West Virginia Center on Budget and Public Policy,” and use those names to try and pass a high severance tax across all three states–effectively killing drilling. Those groups are some of the most partisan in existence. If Socialist politicians like OH State Rep. Robert Hagan (Democrat anti-driller) of Youngstown, OH can’t stop drilling, they want to profit from it by “spreading the wealth around” in classic socialist fashion. Tax drilling at high rates, then redistribute the money to people who will continuously vote said politicians back into office over and over. That’s how it works. Enslave people on public welfare handouts and buy their votes. It’s sick, anti-American, and corrupt.

    Various politicians like Hagan, flying under the banner of the groups named above, are now preening about advocating a “common sense” and “uniform” severance tax of 5% (minimum) across PA, OH and WV. Such a stupid idea would immediately tank the economic miracle happening in PA. You WANT states competing against each other for shale drilling–lowering and even eliminating taxes. Everyone wins when states compete–it keeps natural gas prices low for consumers, benefits landowners in that state, generates thousands of jobs and millions of dollars in local and state tax revenues. A high severance tax is not needed. So when you read about this so-called “fair” proposal, you know what it really is: a naked political power grab meant to empower corrupt politicians to retain their hold on power…
    Read More “Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV”

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    TV Worth Watching: Scranton Station Interviews 3 Marcellus Advocates

    Time to watch a little TV (something we rarely, if ever, do). We actually have some TV worth watching! Three Marcellus drilling advocates appeared on Scranton TV station WBRE this past weekend. MDN editor Jim Willis has met two of the three and counts one of them, John Augustine of the Marcellus Shale Coalition, as a friend. Appearing on the half hour talk show with John were Mark Volk, President of Lackawanna College (whom we have also met) and Brian Oram, a Geologist and principle with B and F Environmental Consultants (whom we have not met but have corresponded with on a number of occasions). All three are terrific representatives for the benefits of Marcellus Shale drilling and the prosperity it’s brought to Pennsylvania.

    Hosted by WBRE Senior Producer Jayne Ann Bugda and PA Live Host Dave Kuharchik, the pair asked our three Marcellus reps a variety of questions about drilling and its safety, benefits and potential drawbacks. Give the program a watch (in two sections, click each in turn)…
    Read More “TV Worth Watching: Scranton Station Interviews 3 Marcellus Advocates”