Pennsylvania

Industrywide Issues | Litigation | Pennsylvania | Warren County | Wastewater

PA DEP Consent Decree Against Waste Treatment’s Warren Plant
November 26, 2013November 26, 2013

A month ago MDN told you a lawsuit had been filed by anti-drilling Clean Water Action (CWA) against the municipal sewage treatment plant in Warren, PA operated by Waste Treatment Corporation. The lawsuit claimed the Warren plant, based on testing of the Allegheny River, continues to process and dump treated frack wastewater into the river (see CWA Sues/Accuses Waste Treatment Corp of Continued Shale Pollution). A day after that story broke, both Waste Treatment and the Pennsylvania Dept. of Environmental Protection responded and said that no, the plant does not and has not treated shale frack wastewater since 2011 (see Waste Treatment, PA DEP Respond to CWA Lawsuit).

However, as we said at the time, the fact that the DEP had also (quietly) filed their own lawsuit against Waste Treatment raises more questions than it answers. We now begin to get some of those answers. Yesterday, the DEP announced a “Proposed Consent Decree” with Waste Treatment that will reduce the amount of total dissolved solids it releases into the Allegheny River. The (important) question remains: If the effluent from the Warren plant is not coming from processing shale fracking wastewater, where is it coming from? What is the source of this super-salty wastewater that’s being processed by this plant?…
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Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

Cabot Buys Second Dimock, PA Property on Carter Road
November 25, 2013November 25, 2013

Contrary to the desires of Josh Fox and other anti-drillers, the “Dimock” story continues to fade away into obscure history. A month ago MDN told you about the former house of some of the loudest Cabot critics who used to live in Dimock, PA–the Sautners. Craig and Julie Sautner sold their house and 3.6 acres to Cabot last year and snuk out of town with $167,500 (see Fracking Opponents Craig & Julie Sautner Sell, Leave Dimock). Last month, the old Sautner house was leveled and the property was sold to the neighbor for a measly $4,000 (see End of an Era? Sautner’s Dimock Home Leveled, Property Sold).

Another Dimock property has just been sold to Cabot, albeit for not quite as much. Mike Ely sold his 12-acre property on Carter Road (including double-wide trailer) to Cabot for $140,000…
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Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

Cabot O&G: Marcellus Cost Structure Goes Through the…Floor!
November 25, 2013November 25, 2013

Cabot Oil & Gas continues to impress and astonish the drilling industry. MDN has written many times before about Cabot’s ability to spin “gold” (profits) from “hay” (low cost price environment). Cabot recently presented at a pair of “global energy conferences” arranged by investment firms Jeffries & Co. and Bank of America Merrill Lynch. We have the slide deck from each (which is pretty much identical) and we’ve embedded it below. You’ll want to review it if you have an interest in the Marcellus Shale.

One of the startling pieces of information we glean from it: Starting in 2009 Cabot’s cost to drill and produce gas was $2.47 per thousand cubic feet (Mcf). By 2013, that number had dropped to an average $1.37/Mcf. Next year, in 2014, Cabot says their Marcellus per unit cash cost, the cost of drilling and producing, will be around…
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Economic Impact | Industrywide Issues | Lycoming County | Pennsylvania

Is the Marcellus Already Going Bust in Lycoming County, PA?
November 25, 2013November 25, 2013

Has the Marcellus Shale drilling industry already going bust? If you read the headlines of say, oh, the Philadelphia Inquirer, that may be the conclusion you reach. But if you read beyond the headlines you’ll find a different story.

The number of drilling rigs in the Marcellus is down a bit from what it was a year or two ago, that’s for sure. With less drilling comes less of a lot of other things needed for drilling (hotel visits, construction, security, catering, etc.). However, it may be more accurate to view the Marcellus drilling industry as more like taking a breather. Regrouping. Assessing. One thing is for sure, although some parts of the Marcellus drilling industry may have dipped (not gone bust, but slowed a bit), other parts of it are just picking up steam. A better metaphor is “ebb and flow”…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Deloitte & EIA: 90,000 Marcellus Wells Drilled in Next 20 Years
November 25, 2013November 25, 2013

A new report published by consulting powerhouse Deloitte references (and affirms) U.S. Energy Information Administration’s predictions that it will take at least $5 trillion of investment in the oil and gas sector between now and 2035 to main current levels of oil and natural gas production and meet future demand as it rises. The report is titled “The challenge of renaissance: Managing an unprecedented wave of oil and gas investment.” Unfortunately we couldn’t locate a copy–but reportedly it’s full of interesting facts–like the $5 trillion number.

Another eye-popping number from the report: Current estimates are that 90,000 Marcellus Shale wells will be drilled over the next 20 years. That kind of activity will spur an unfathomable economic revival in the northeast like we haven’t seen in since, well, forever! The study says while “trillions” will be spent on upstream (drilling), “hundreds of billions” will need to be spent on midstream (pipelines & processing plants) in order to keep up with the production. More from the Deloitte study…
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About MDN | Allegheny County | Industrywide Issues | Jobs | MDN Resources | Pennsylvania | Supply Chain | Washington County

Want to Plug in to the Marcellus Industry? These Groups Can Help
November 25, 2013November 25, 2013

For individuals living in Greater Pittsburgh looking for a job in the drilling industry, or companies looking to break into the Marcellus Shale supply chain, the Pittsburgh Business Times published a helpful list of organizations (and their websites) that may be able to give you an assist with your pursuit…
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Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

The One Issue on Which Anti- and Pro-Drillers Agree
November 22, 2013November 22, 2013

Is there an issue on which both anti- and pro-drillers can agree? Is there ever a time both sides can sit at the same table and discuss a potential problem, and do so without hyperbole and snarky comments? Is there an issue over which both sides can talk and not have it end in shouting? Indeed there is–and it is the issue of air pollution. MDN realizes we’re on shaky ground with our industry friends by writing this, but on several occasions we’ve pointed out there is a growing body of evidence that shows a marked increase in air pollution in heavily drilled areas–mostly from compressor plants, but also from drilling rigs, truck traffic, etc. (see PA DEP Report: Counties with Fracking Have More Air Pollution). The issue of air pollution is enough to unite two neighbors from Dimock, PA who were formerly on opposite sides of the drilling debate.

One of those neighbors starred in Josh Fox’s Gasland II fiction–Victoria Switzer (see More on “Pro-Drilling” Conversion of Gasland II Star from Dimock). We wouldn’t say Vickie is exactly pro-drilling these days, but she’s decided to be realistic and constructive, instead of obstructive, and that’s a positive change. She’s once again on speaking terms with her Dimock neighbor Ron Teel, a pro-drilling landowner. Ron and Vickie both belong to the local advocacy group Breathe Easy Susquehanna County…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Cracker Talk: Shell Rumored to be Buying Up Land Near Site
November 22, 2013November 22, 2013

Yes, more “cracker talk,” but we’re hopelessly addicted to cracker talk. The Pittsburgh Post-Gazette is reporting that Shell is buying up more land around a proposed ethane cracker site in Beaver County, PA. If Shell has decided to not build the cracker, it certainly doesn’t make sense for them to spend money on purchasing land. So, maybe this is a good sign that Shell is moving forward with their cracker?

The race is now on to see who will build the first ethane cracker in the northeast: PA or WV. Is the talk about Shell buying land just more hype by the Pittsburgh media? Or is there something “there” with this story? The latest scuttlebutt about the Shell cracker…
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Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logistics Planning Second Mariner East Pipeline for NGLs
November 22, 2013November 22, 2013

More than a year ago MDN brought you the news that Sunoco Logistics’ Mariner East pipeline–an existing pipeline being upgraded to convey propane and ethane from western Pennsylvania all the way to the Marcus Hook refinery near Philadelphia–was completely spoken for (see Mariner East Pipeline to Philly Refinery 100% Committed). Range Resources announced at the time that they would be the main user of the pipeline (see Range Announces They’re Main Shipper for Mariner East Pipeline). Upgrades to the Mariner East are under way now and will be online beginning in 2014.

In re-reading those stories from last year, we should have noticed something we did not. Sunoco said they were considering a second “open season” for Mariner East. If the pipeline is already 100% committed, how can they take on even more customers? Answer: Build a second Mariner East pipeline. Thanks to an excellent bit of reporting in the Harrisburg Patriot-News, we now understand what that statement meant last year. In a story published yesterday, the Patriot-News says Sunoco is working on a plan to build a second Mariner East pipeline across PA. Although there are currently few details, the outlines of where the pipeline may go are taking shape thanks to notifications received by PA landowners in the Susquehanna Valley area…

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Industrywide Issues | Lackawanna County | Pennsylvania | Taxation

Marcellus Drilling Helps Fix Biggest Polluter of Chesapeake Bay
November 22, 2013November 22, 2013

Natural gas will help clean up the single largest source of pollution to the Chesapeake Bay. What is that source? Acid mine drainage that pours out of a single hole called the Old Forge borehole drilled by the federal government (Army Corps of Engineers) in 1962. Some 60-100 million gallons of acid mine water pour out of that hole every day–into the Lackawanna River which dumps into the Susquehanna River which empties into the Chesapeake Bay.

Where does all that water come from (what causes it), and what does natural gas have to do with fixing the problem? Read on…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Research | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica States Slip in Global Petroleum Survey
November 21, 2013November 21, 2013

Each year, the Canadian-based Fraser Institute surveys petroleum industry executives and managers (864 of them for 2013) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? It’s vitally important to understand what drives investors because without money, drilling doesn’t happen.

The Global Petroleum Survey, as it’s called, tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. MDN reported the rankings last year (see Energy Execs Rank Drilling Locations Including WV, OH, PA, NY). A copy of this year’s full report/rankings is embedded below. How did Pennsylvania, Ohio, West Virginia and (yes) New York fare this year, compared to last?…
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Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Utica Shale

Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling
November 21, 2013November 21, 2013

A 51-year old forced pooling law in Pennsylvania that strangely does not apply to the Marcellus Shale layer, but does apply to the deeper Utica Shale layer, is being put to the test. In early October, MDN told you that Hilcorp had decided to take “the low road” and sue a landowner in Lawrence County, PA to force that landowner to allow his 14.6 acres to be drilled under using the old law (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner).

The PA Dept. of Environmental Protection balked at invoking the old law to force the landowner and instead tossed this hot potato to the Environmental Hearing Board. The Hearing Board ruled this week that it doesn’t have jurisdiction and that the matter properly does belong back at the DEP. So what will the DEP do now?…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

AP’s “Evidence” Shell Still Considering a PA Cracker Plant
November 20, 2013November 20, 2013

It seems that darned West Virginia ethane cracker plant is just getting too much attention, so the AP has written a “Me too! Me too! Look at me! Pick me!” article about the proposed Shell ethane cracker plant planned for Beaver County, PA. AP has “investigated” (there’s a first!) and found certain evidence that may point to Shell actually going forward with their cracker plant. As MDN pointed out tongue-in-cheek just last week, the Greater Pittsburgh area has some angst that the WV cracker may spell the end of the Shell cracker in their state–so there’s a bit of trash talking going on (see Clash of the Ethane Cracker Titans: PA vs WV Smackdown).

AP to the rescue! Here’s the evidence from the AP that yes indeed, Shell really really really is maybe considering may possibly might actually build a cracker plant near Pittsburgh after all:
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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Allegheny County (PA) Council Votes Down Drill Ban for Parks
November 20, 2013November 20, 2013

A few weeks ago MDN told you about a meeting convened by PA State Sen. Jim Ferlo (we called it Ferlo’s Follies) where Ferlo and other anti-drillers carped and complained about a proposed plan to allow drilling under (not on) some Allegheny County, PA parks. We noted that one anti-driller at the meeting offensively and shamefully shoved an 8 year-old child in front of the microphones to plea for a ban on drilling in parks (see PA Anti-Drillers Shove Their Children Before the Microphones).

We’re happy to report the anti-drilling rabble-rousers have been defeated–soundly. Last night the Allegheny County Council voted down the proposed 3-year moratorium on drilling under (not on) county parks, and they voted it down rather convincingly: 9 to 2…
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Pennsylvania | Utica Shale | Warren County

Penn State Gives Warren County Some Hard Truth, Hope re Drilling
November 20, 2013November 20, 2013

Warren County, PA, located in the northwestern part of the state, is not in the “sweet spot” for Marcellus/Utica Shale drilling. That was the blunt (but kindly delivered) message from two Penn State Marcellus Education Team educators at a meeting yesterday at the Warren Public Library.

Warren County does have a few Utica wells: 12 permitted with 5 already drilled or being drilled right now. However, widespread drilling will not come to Warren in the near future. Question: Will it ever come to Warren? Answer…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Lackawanna County | Pennsylvania | Regulation

Scranton Area TU Chapter Hears about New Tactic to End Drilling
November 20, 2013November 20, 2013

As MDN pointed out a few days ago, anti-drilling members of the anti-drilling Trout Unlimited (TU) have changed tactics (see TU: If You Can’t Beat Shale Drillers, Try a New Lie). Instead of calling for an outright ban on Marcellus Shale drilling in Pennsylvania, they’ve decided to call for over-regulation–attempting to make their requests sound reasonable and fair. The intent is still the same: stop drilling any way you can.

TU community ~~agitator~~ organizer Paula Piatt traveled from Mifflin County (central PA) to Lackawanna County (northeast PA) to spread the “let’s regulate them to death” message yesterday…
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