Pennsylvania

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

How Do You Talk to (Educate) Friends & Neighbors About Shale?
October 10, 2013October 10, 2013

It’s a common problem for those of us who are immersed in the shale energy industry. We are so saturated all the time with the arguments and counter-arguments and details about shale drilling, that when faced with a family member, friend or neighbor who isn’t well-versed in the industry, we grope for the words and terms to use to describe this incredible industry and its successes. Most of the time our friends and family have a built-in reticence and caution about shale drilling because they know nothing more than what mainstream media feeds them, most of it untrue.

So how do we quickly, accurately and effectively communicate the positive shale drilling message? Michael Krancer, former Secretary of the PA Dept. of Environmental Protection, has a solution, which he shared recently at the Energy Inc. conference in Pittsburgh…

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Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

More on “Pro-Drilling” Conversion of Gasland II Star from Dimock
October 10, 2013October 10, 2013

A few days ago we told you that one of Josh Fox’s stars in Gasland II, Victoria Switzer, has changed sides and now wants to work with the drilling industry to ensure the air is clean in Susquehanna County, PA (see Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism”). This is a huge problem for the anti-drilling movement, a movement that is typically shrill and frankly, unthinking. We now have at least a few people who, while they don’t like natural gas drilling going on around them, are willing to have a cogent, what they call “respectful” dialog about it. They also recognize shall drilling is here to stay–they are realists. Finally, some people on the other side of the issue we can talk to!

A bit more about the new tone and the new group which Switzer and other former anti-drillers have formed–a group called Breathe Easy Susquehanna County…
Read More “More on “Pro-Drilling” Conversion of Gasland II Star from Dimock”
Air Quality | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Regulation | Statewide PA

Should PA Compressor Plants Miles Away be Considered “Adjacent”?
October 9, 2013October 9, 2013

A few weeks ago at the Shale Insight 2013 event in Philadelphia, MDN heard a panel discussion that tackled a thorny, and on-going, issue in Pennsylvania. The issue is complex, but if we can condense it to a brief statement, it would be this: Should processing and compressor plants that are connected by pipelines but not directly next to each other be considered a “single source” when it comes to the pollution they emit? The argument comes down to the concept of adjacency–what does the word “adjacent” mean in the federal Clean Air Act? Does it mean “directly next to each other,” or “in the same general vicinity” (up to X miles away)?

If the plants scattered in a general area–say 20-30 miles around–are considered a single source or “adjacent”, it means collectively they would be considered a “major source” of pollution and therefore subject to very strict federal guidelines under the Clean Air Act. If they are not adjacent and not a single source, they are regulated by the state and the state has less onerous rules when it comes to air pollution emissions. It may sound like a small difference, but being regulated by the EPA or the state of Pennsylvania is a huge (and expensive) difference. The real question is, are residents who live in areas with an abundance of compressor stations and processing plants being exposed to dangerously high levels of air pollution?…
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Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

17 State Chambers of Commerce to EPA: States Regulate Fracking
October 9, 2013October 9, 2013

On Sept. 20, 17 state Chambers of Commerce sent a joint letter to President Obama’s new EPA Administrator, Gina McCarthy. They opened the letter (full copy below) with a nice greeting and a congratulations on her recent confirmation as administrator, and then immediately launched into a statement (not really a request) that tells her to, in so many words, keep her mitts off fracking. That is, leave the regulation of fracking where it properly and Constitutionally belongs–with the individual states.

The federal government does not have a Constitutional role in regulating fracking and the Chambers of Commerce, representing 34% of all states and from the biggest oil and gas producing states in the Union–want to keep it that way. Not surprisingly, among the signatories are the Pennsylvania, Ohio and West Virginia Chambers of Commerce…
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Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA Republicans Introduce 4 Royalty Bills, Mea Culpa?
October 9, 2013October 9, 2013

A new PA law was supposed to give leased landowners whose property has had drilling more protections with respect to royalties, but instead ended up harming some landowners who are not leased by allowing forced pooling of their land–weakening their bargaining position (see PA Gov Corbett Signs Back-Door Forced Pooling Bill into Law). PA landowners in general and the National Association of Royalty Owners (NARO), PA chapter in particular were not pleased with the new law. Perhaps in an attempt to get back into the good graces of PA landowners, several Republican state lawmakers whose districts are in the Marcellus Shale have introduced a plethora of new bills to protect royalty interests of landowners.

A group of four House Republicans, led by Rep. Garth Everett (R-Lycoming County), recently introduced House Bill 1684, which seeks to clarify state law regarding the minimum royalty payment for landowners so that the deduction of post-production costs from unconventional wells may not result in royalty payments less than the guaranteed minimum. On the Senate side, Sen. Gene Yaw, whose district covers many of the northeastern PA drilling counties, introduced a series of three companion bills to HB 1684. It seems the Republicans can’t do enough now to help out leased landowners…
Read More “PA Republicans Introduce 4 Royalty Bills, Mea Culpa?”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Litigation | Pennsylvania

Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner
October 8, 2013October 8, 2013

This is not the kind of story we enjoy sharing with you. Hilcorp, a major driller in the Utica and Marcellus Shale, has decided to take what we consider “the low road” and is using a 1961 Pennsylvania law to sue a landowner to allow them to drill under their property. It’s called “forced pooling,” “compulsory integration,” and a variety of other terms. MDN does not support it. Our argument is simple: My neighbor should not have the right to tell me I can’t drill on and under my land, and I should not have the right to force it on my neighbor if they don’t want it. We believe it’s the only defensible position in the drilling debate.

Regardless, Hilcorp has moved forward with a legal action against a landowner in Lawrence County, PA who owns just 14.6 acres in a drilling unit leased by Hilcorp–and that 14.6 acres apparently prevents Hilcorp from drilling. So off to court they go…
Read More “Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

Dow Disingenously Tells Shell to Forget About a PA Cracker Plant
October 8, 2013October 8, 2013

Manufacturing and labor leaders held a confab yesterday in Pittsburgh to discuss jobs, the economy, and how the Marcellus is lifting both in southwestern Pennsylvania (see our companion story today). One of the speakers at yesterday’s meeting was Peter Molinaro, vice president and senior advisor on government affairs for The Dow Chemical Co. One of Dow Chemical’s chief rivals and competitors is Shell Chemical. Shell, as MDN readers are well aware, is currently conducting a multi-year evaluation of whether or not to build a regional ethane cracker plant in Beaver County, PA, outside Pittsburgh about 30 miles.

It probably won’t surprise you that Dow’s Molinaro said at yesterday’s meeting that PA probably doesn’t need a cracker plant after all. Are Molinaro’s comments about a PA cracker wise and measured counsel from an industry participant who has a feel for the economics of U.S. manufacturing and what it truly needs? Or are his comments trash-talking a competitor in hopes of scuttling a deal and eliminating competition so more ethane will be pipelined to the Gulf–where Dow’s cracker plants are located? You decide…
Read More “Dow Disingenously Tells Shell to Forget About a PA Cracker Plant”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided”
October 8, 2013October 8, 2013

MDN editor Jim Willis had the great pleasure of meeting and speaking with former PA Dept. of Environmental Protection (DEP) Sec. Michael Krancer at Shale Insight 2013 a few weeks ago. Jim doesn’t mind telling you what he told Sec. Krancer to his face: “I’m a huge fan!” Krancer did some great work at the DEP during his too-short tenure. Since then, Krancer has moved on to private practice in Philadelphia, working on energy law for powerhouse law firm Blank Rome.

Sec. Krancer minces no words, which is what we love about him. He’s also extremely smart. And, he’s no fan of recently introduced legislation by PA Sen. Jim Ferlo who wants to ban fracking in Pennsylvania–Ferlo calls it a moratorium but it’s “open-ended,” meaning it’s really a ban (see PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill). Krancer penned a devastating rebuttal to Ferlo’s bill and indeed to obtuse anti-fossil fuel advocates throughout Pennsylvania. Sec. Krancer sent along a copy of his sterling piece, first published on the Law360 website, with permission for MDN to distribute it far and wide. Forthwith, from the sharp pen of Sec. Krancer…
Read More “PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided””
Allegheny County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Washington County | Westmoreland County

Pittsburgh Summit: Marcellus the WD-40 of SW PA Rustbelt Economy
October 8, 2013October 8, 2013

Yesterday a group of manufacturing and labor leaders gathered at the International Brotherhood of Electrical Workers headquarters on Pittsburgh’s South Side to talk about the creation of more manufacturing jobs in the greater Pittsburgh area–specifically about how Marcellus Shale is changing the landscape and is a tremendous jobs creator in the region. Several publications attended and each put their own angle on what was said at the meeting.

MDN picks through the stories to bring you the bits and pieces we found interesting–news about how the Marcellus is changing the picture in southwest PA and beyond. One of those interesting tidbits: the chairman of the PA Public Utility Commission said Marcellus Shale gas has been responsible for power prices dropping an average 52% across the state–for everyone. Incredible! And a comparison between the Marcellus and WD-40…
Read More “Pittsburgh Summit: Marcellus the WD-40 of SW PA Rustbelt Economy”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Washington County

Strange Twist: Rep. Jesse White Calls His Own Words “Hate Speech”
October 7, 2013October 7, 2013

For some time MDN has chronicled the sad story of western PA Rep. Jesse White, an anti-driller with a grudge against Range Resources who turned to using fake online IDs in order to trash talk his own constituents (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry). White eventually (months later) saw the error of his ways when he was outed at Harvard summer school and his “peers” told him “Jesse, you done wrong” (see PA Rep. White Says Fake IDs were “Error in Judgment”).

So get this. Some of White’s constituents, rightly outraged that he is still in office, put his own fake ID words on a big poster board and showed it at an information table set up at the local Fall Festival at an area park. Local Democrat officials were miffed that someone had the audacity to tell the truth about one of their own–in public! Some of the local Dems resigned from their respective boards in protest over the booth. Jesse called his own words on that poster “hate speech.” Huh? That’s right–the fact that someone took his exact words and showed them to local residents (because the media continues to fail to do its job), and White said it’s hate speech. Yeah Jesse, we’re glad you agree that what you previously said is indeed “hate speech”…
Read More “Strange Twist: Rep. Jesse White Calls His Own Words “Hate Speech””
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Susquehanna County

Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism”
October 7, 2013October 7, 2013

What’s this…one of the stars of Gasland II, someone who trash-talked the shale drilling industry in Dimock, PA has changed sides? Yep. Well, sort of. Victoria Switzer has given up what she calls “tunnel vision” and has adopted “realism.” She says, “Realism is good.” She no longer calls for a halt to drilling in PA and instead wants to ensure it’s done safely–by working with industry and regulators. Welcome to logic and sanity! Glad to have you on our side.

Watch out Josh Fox: Switzer is not the only former anti-driller now whistling a different tune…
Read More “Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism””
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Susquehanna County

The Cabot O&G Marcellus Rocketship – To the Moon!
October 4, 2013October 4, 2013

Cabot Oil & Gas, one of our favorite Marcellus drillers, continues to amaze and astound just about everyone. Last Friday (a week ago) the company issued a new “guidance” or “this is our best, educated guess” as to how much natural gas production the company will end up producing for 2013, and how much they believe it will grow in 2014. Given Cabot is already the number one natural gas producer in PA and the first member of what MDN calls the “billion cubic feet per day” club (see Who’s a Member of the Marcellus “1 Bcf/d” Club?), it’s amazing that in 2014 they predict production will be up another 30-50% over this year. Wow!

Something just as startling and no doubt the envy of all their competitors, Cabot CEO Dan Dinges tips their hand as to what the breakeven price is at which the company starts to make money. It’s a LOT lower than even we thought is was…
Read More “The Cabot O&G Marcellus Rocketship – To the Moon!”
Carlyle Group | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Philly Refinery Processes 190K Barrels/Day of Shale Oil
October 4, 2013October 4, 2013

My how times change. A year ago the then-Sunoco Philadelphia refinery was set to close its doors with a loss of 850 jobs. But something happened on the way to closing down: shale. Shale oil, in particular. Today, the refinery is called Philadelphia Energy Solutions (PES), a joint venture between the Carlyle Group and Sunoco (Sunoco merged with and is now known as Energy Transfer Partners). As MDN chronicled in July 2012, three shale plays will ultimately play an important role for the refinery–the Bakken, the Marcellus and the Utica (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). However, PES is also eyeing other shale plays, like oil from the Permian Basin (in Texas). That would be a hoot–Pennsylvania refining Texas oil!

More than half of the refinery’s 350,000 barrel per day capacity now comes from the Bakken Shale in North Dakota. How? Mostly by railroad, with the rest by barge. According to PA Gov. Tom Corbett, on hand for a ribbon-cutting ceremony at the refinery earlier this week, the Marcellus and Utica will soon play a role at the refinery too: “There’s a pipeline coming over here soon that’s going to be bringing natural gas over. You’re using natural gas now to fuel some of your efforts here but also to create a propane and ethane facility here”…
Read More “Philly Refinery Processes 190K Barrels/Day of Shale Oil”
Bradford County | Pennsylvania | Susquehanna County

435 Acres of Marcellus Land in NE PA Goes to Auction Oct 30
October 4, 2013October 4, 2013

MDN welcomes a new advertiser to our website this week. United Country Real Estate sought out opportunities to make know an upcoming auction of Marcellus acreage and MDN fit the bill–we thank them! (See their ad on the right side of any page.) The auction, which many MDN readers will be interested in, is for 435 acres of land, including mineral rights, in northeast PA. The seven separate tracts of land up for auction are located in prime Marcellus Shale country–in Bradford and Susquehanna counties. This is a court-ordered land sale. The auction will take place on October 30 at the Fairfield Inn & Suites by Marriott in Wysox, PA.

Here are the full details from United Country Real Estate:
Read More “435 Acres of Marcellus Land in NE PA Goes to Auction Oct 30”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Indiana County | Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

What’s Missing in Latest Duke “Radioactive” Study? Real Science
October 3, 2013

Those crazy, anti-drilling kids at Duke University are at it again. They released a “study” in a “peer-reviewed” journal yesterday (a study funded in part by the anti-drilling Park Foundation) that took samples from a creek downstream from a wastewater treatment plant that used to (but no longer does) treat Marcellus fracking wastewater. Republican Michael Krancer put an end to frack wastewater treatment by such facilities in early 2011, something the Rendell administration couldn’t or wouldn’t do. Krancer and the Marcellus Shale Coalition said municipal plants processing frack wastewater was creating an issue (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). So the Park/Duke kids sampled a single creek before the practice had ended and found, not surprisingly, high (but not dangerous) levels of radioactivity in the stream bed. In other words, they’re reporting what we’ve known for the past three years.

What do the headlines in hundreds of newspapers and online sources (with lazy reporters) blare out today? Fracking causes radioactivity in streams and rivers (plural) in Pennsylvania. Even though the Duke study only looks at a single location in a single creek and the data predates when the practice ended. Real science would have investigated multiple wastewater treatment plants, not just cherry-picking one. Real science is not funded by an avowed anti-drilling organization like the Park Foundation. And real science would have pointed out frack wastewater treatment at these plants ended several years ago. But then, no one ever accused Park/Duke kids of performing real science…
Read More “What’s Missing in Latest Duke “Radioactive” Study? Real Science”
Beaver County | Columbiana County | Energy Services | Mahoning County | MarkWest Energy | Ohio | Pennsylvania

MarkWest Energy Buys an Ohio Short Line Railroad – Why?
October 3, 2013October 3, 2013

As we’re always fascinated with a good railroad story, our eyes perked up when we saw that a MarkWest subsidiary company is about to close a deal to purchase a 36-mile short line railroad from the Columbiana County (OH) Port Authority–for just $3 million. The railroad, known as the Youngstown & Southern Railroad, runs from Boardman (Mahoning County), OH through Columbiana, Rogers and Negley (all in Columbiana County), ending it’s tracks at Darlington (Beaver County), PA.

What will MarkWest do with a railroad? Right now, they’re being tight-lipped…
Read More “MarkWest Energy Buys an Ohio Short Line Railroad – Why?”