Pennsylvania

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?”
Bucks County | Montgomery County | Pennsylvania

Could Philly Burbs See Shale Drilling?! PA DCNR Launches Study
October 3, 2013October 3, 2013

Last summer MDN told you about a new U.S. Geological Survey (USGS) “discovery” that there are more untapped shale plays in the northeast. One of those plays is the Newark Basin that underlies parts of New Jersey, Maryland, and yes, Pennsylvania (see the USGS report and map here: Maryland has Multiple Shale Basins?!). In particular, the South Newark Basin lies under parts of southeastern PA–Philadelphia and its suburbs. While no one believes there will ever be a drilling rig in Philadelphia, there is the possibility of drilling out in the burbs.

The PA Dept. of Conservation and Natural Resources (DCNR) has just “quietly” awarded a contract to Penn State University to study “what lies beneath” in Bucks and Montgomery counties. The contract began July 1 and won’t be completed until June 30, 2015–two full years. When done, we should have a good idea of whether or not there’s recoverable shale gas in the area. So, is this study a prelude to drilling one day?…
Read More “Could Philly Burbs See Shale Drilling?! PA DCNR Launches Study”
Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Transco | Williams

Williams Goes Back to (PR) School Over Controlled Release Panic
October 3, 2013October 4, 2013

Williams scared the bejeebers out of teachers and students at the Dallas School District (near Scranton/Wilkes-Barre, PA) last Thursday when they did a controlled release of natural gas from their nearby Transco interstate natural gas pipeline. Williams was emptying part of the pipeline to work on it and the controlled release caused a panic and calls to 911 with concerns over a gas leak. Williams admits they could of/should of done a better job in communicating with residents in the community, and that they should of waited until after (or before) school hours to do the controlled release. Of course local anti-drillers seized on the “incident” to make some PR hay.

So, did Williams learn their lesson?…
Read More “Williams Goes Back to (PR) School Over Controlled Release Panic”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Pennsylvania | Statewide OH | Statewide PA

Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future
October 1, 2013October 1, 2013

Gary Evans, CEO of Magnum Hunter, presented at the IPAA Oil and Gas Investment Symposium yesterday in San Francisco. He did a deep dive into MH’s Marcellus and Utica Shale operations and plans moving forward. Evans said the company now owns 490,000 net acres in the northeast (Appalachia) with 81,000 net acres in the Marcellus Shale and 80,000 net acres in the Utica Shale. They have investments and operations in both drilling and in the midstream (pipelines) segment via subsidiary Eureka Hunter.

Below are Evans’ comments from yesterday along with a PowerPoint presentation which we believe is likely the one he used (or very similar to the one he used). Slides #13-#27 cover the Marcellus and Utica–well worth your time to review, some great maps and charts. Also included, a nifty picture of MH’s new robotic drilling rig (slide #26)…
Read More “Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Pipelines | Statewide PA | Sunoco Logistics

A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly
September 30, 2013

Problem: How can Philadelphia benefit from cheap, abundant Marcellus Shale natural gas being produced in such large quantities in Pennsylvania that the state can’t use it all and is now a net exporter? Yes, as Drexel president John Fry said at Shale Insight last week, Philly can provide education and research to assist the shale revolution (see Shale Insight 2013: Final Wrap-Up, The Big Surprise). But aside from education and research, how can Philly realize the tangible benefits of low-cost shale gas? Answer: Install a big, fat pipeline into Philly to deliver cheap Marcellus Shale gas to residents and businesses that can use it.

New Problem: Where do you run a new pipeline in a densely populated city like Philly? New Answer: Under the Delaware River (?!?!)…
Read More “A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County | Wastewater

Mt Pleasant Tells Range Resources “No Deal” on Water Impoundments
September 30, 2013September 30, 2013

An update of the ongoing kerfuffle between Range Resources and their four water impoundments (i.e. ponds) and Mt. Pleasant Township officials in Washington County, PA (for background, see Range Water Impoundment Public Hearing Postponed 2nd Time). Mt. Pleasant recently served Range with zoning violation notices for the four impoundments–they want them all closed. Range recently proposed a compromise that would allow them to keep three of the four impoundments open.

The town board of supervisors met and discussed Range’s proposal during a rare Saturday session–and said “no thanks” to the proposal…
Read More “Mt Pleasant Tells Range Resources “No Deal” on Water Impoundments”
Berks County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy

Spectra’s TEAM 2014 Pipeline Loops Coming to Berks County, PA
September 30, 2013September 30, 2013

Spectra Energy is in the midst of a multi-year $500 million project to expand its Texas Eastern pipeline in the northeast to boost capacity to bring Marcellus and Utica Shale gas to markets in the northeast, Midwest and south. The project, called the Texas Eastern Appalachia to Market Expansion 2014 (or “TEAM 2014”) involves upgrading existing compressor plants and building new “loops” of pipeline next to existing pipeline in southeastern Pennsylvania.

One of the counties where Spectra plans to build new looping pipeline is Berks County, where residents have until mid-October to make comments on (and support!) Spectra’s proposed TEAM 2014 plans…
Read More “Spectra’s TEAM 2014 Pipeline Loops Coming to Berks County, PA”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP’s O&G Division Gets High Marks from Independent Review
September 30, 2013September 30, 2013

An independent, third-party peer review organization–State Review of Oil and Natural Gas Environmental Regulations, Inc.–has given the Pennsylvania Dept. of Environmental Protection’s (DEP) Office of Oil and Gas Management a very close examination. What did they find? They found it to be “proficient” and “ready to address the increase in oil and gas operations in Pennsylvania.” The review gave the DEP high marks for the actions they’ve taken (and new regulations instituted) over the past two years under Gov. Tom Corbett.

DEP Acting Sec. Chris Abruzzo said this independent review proves that PA’s world class shale drilling is matched by world class oil and gas management and regulations…
Read More “PA DEP’s O&G Division Gets High Marks from Independent Review”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | XTO

Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo
September 27, 2013September 27, 2013

MDN became aware that newly nominated (and currently Acting) Secretary of the PA Dept. of Environmental Protection, Chris Abruzzo, would be attending Shale Insight 2013. So we requested an interview with the Secretary, and he obliged! To our knowledge, we were the only media interview he granted during a brief walking around the show visit on Wednesday.

MDN editor Jim Willis asked Sec. Abruzzo some tough questions, including his take on the PA Attorney General’s criminal lawsuit against XTO (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO); his biggest challenge since holding the office in April; how he responds to the charge that the DEP is sometimes too cozy with the drilling industry; an update on the DEP’s study of air quality near drilling sites and compressor stations (see DEP Marcellus Air Study in SW PA Extended Extra Half Year); and his response to John Hanger (former Secretary of the DEP) about his remarks that Abruzzo’s appointment was “bizarre and irresponsible”…
Read More “Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | UGI Energy Services | Wyoming County (PA)

Victory! UGI Nears Completion of New Pipeline Gate Station
September 27, 2013September 27, 2013

It’s a small victory, but a victory nonetheless. The point where two different natural gas transmission pipelines connect–to transfer gas from one to the other–is called a gate station. Utility company UGI wanted to build a gate station near Scranton, PA so it could tap into locally-produced (and very cheap) Marcellus Shale gas from northeast PA. And of course anti-drillers objected, even though there’s been another gate station operating safely in the area for 50 years (see Anti-Drillers Try to Stop Pipeline Connector in NE PA and Back to Kindergarten: UGI Explains NatGas Gate Stations).

In August a judge finally cleared the way for UGI to build their new gate station–and it’s nearly done. Finally! A victory against the anti-drilling Luddites…
Read More “Victory! UGI Nears Completion of New Pipeline Gate Station”
Butler County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pipelines | Rex Energy

Rex Energy Water Contamination Case Shifts Focus to Water Pipeline
September 27, 2013September 27, 2013

An update on the lingering/ongoing story of a community in western Pennyslvania (in Butler County) who say that nearby drilling by Rex Energy led to contamination of their well water supplies. The last MDN update on this story was in August of last year (see PA Residents Weary of Fight with Rex over Water Contamination). Some families have retained legal help and either have, or intend, to sue Rex. The PA Dept. of Environmental Protection, after an extensive investigation, said that Rex’s drilling is not at fault in the situation.

However, for most of the families, the issue has now progressed beyond blame–apparently water quality in the area was never the greatest to begin with. Rex had built a water line in the area to supply water for fracking and expects to turn over control/ownership of that line later this year. That water line can potentially be used to supply fresh water to the affected homes. The debate now: Who will pay to hook up the homes and to maintain the pipes and infrastructure required?
Read More “Rex Energy Water Contamination Case Shifts Focus to Water Pipeline”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Soil | Statewide PA | Wastewater

Pittsburgh Water-Testing Lab’s Certification Pulled, $60K Fine
September 27, 2013September 27, 2013

We don’t know if any Marcellus drillers in Pennsylvania were previously using Pittsburgh-based Microbac Laboratories to test water or soil for drilling purposes–but we do know they aren’t using them now. The PA Dept. of Environmental Protection (DEP) investigated Microbac and found 50 violations at their Baltimore, Maryland lab. Microbac has voluntarily relinquished its accreditation and will pay a $60,000 fine. Ouch. They will also pay to have an independent third-party audit (i.e. someone will come in and tell them what they’re doing wrong)…
Read More “Pittsburgh Water-Testing Lab’s Certification Pulled, $60K Fine”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Meetings | Pennsylvania | Statewide PA

Shale Insight Philadelphia: Day One (Tuesday)
September 25, 2013September 25, 2013

MDN editor Jim Willis is in Philadelphia for the next few days attending the Marcellus Shale Coalition’s Shale Insight event. Jim is taking copious notes, as he does when visiting such events–so you’ll get to read about it in the coming days. Yesterday (Tuesday) was the “pre-conference” day. Of special interest was the Technology Showcase where established and up-and-coming companies shared their technologies for treating water, dealing with silica dust and a variety of other applications. If you’re “into shale,” it was fascinating.

Rather than recount it all for you right now, we’ll share a good story (very fair and balanced, surprisingly) written by the Philadelphia Inquirer who had a reporter on hand. The write-up does a good job of recounting the Technology Showcase, and in forecasting the coming protest from anti-drillers. One thing we can tell you–security is really, really tight at the Philadelphia Convention Center. They clearly believe there’s going to be a sizable crowd of antis parading out front…
Read More “Shale Insight Philadelphia: Day One (Tuesday)”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PennEnvironment Supports PA Dem Frack Ban Bill, Gins Up Report
September 25, 2013September 26, 2013

Editor’s Correction: We slipped up! The original version of this story contained a headline and introduction (below) that said PennFuture was the organization that issued the report. It was not. It was PennEnvironment. Our sincere apologies to PennFuture.

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In a pathetic attempt to give political cover to their anti-drilling collaborators in the PA legislature, yesterday anti-drilling group ~~PennFuture~~ PennEnvironment issued a so-called report that demands that Pennsylvania turn the lights out on fracking for shale gas–at least for now and the foreseeable future–until…we don’t know, just until. Until they say so.

Last week MDN told you about PA Democrats who decided to leap over the cliff hoping a net (of public support) would appear by introducing legislation to ban fracking in the state (see PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill). Thunk. No net appeared and the Dems now face annihilation at the next election. So ~~PennFuture~~ PennEnvironment is attempting to throw out a lifeline with a ginned up “report” that supports a loony frack ban…
Read More “PennEnvironment Supports PA Dem Frack Ban Bill, Gins Up Report”
Energy Services | Industrywide Issues | Pennsylvania | Regulation | TerrAqua Resource Mgmt | Washington County | Wastewater

TerrAqua a Half Step Closer to New Frack Wastewater Facility
September 25, 2013September 25, 2013

TerrAqua Resource Management wants to build a new frack wastewater recycling/treatment plant in Smith Township, Washington County, PA (see Hearing on Proposed TerrAqua Wastewater Recycling Facility in PA). A public hearing was held Monday night, which moves TerrAqua one step closer to gaining permission.

However, the Smith Township public hearing was not without its bumps for TerrAqua…
Read More “TerrAqua a Half Step Closer to New Frack Wastewater Facility”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter
September 24, 2013September 23, 2013

Chesapeake Energy recently settled a lawsuit with Pennsylvania landowners in which they agree to pay (a pitifully small) $7.5 million to landowners after shorting them on royalty payments (see Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M). The National Association of Royalty Owners Pennsylvania chapter is telling landowners to pay “very close attention” to the settlement letter when it comes.

The settlement letter may have much broader implications than just getting a check for a few bucks from Chesapeake. It may set the rules for how your future royalties will be calculated…
Read More “Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter”