Pennsylvania

Energy Companies | Energy Services | Ethane | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Sunoco Logistics

Philly Refinery Strikes Deal to Export SW PA Marcellus Ethane
January 25, 2013January 25, 2013

Marcellus Shale ethane, a valuable hydrocarbon recovered from natural gas wells in areas of southwestern Pennsylvania, will be exported to Norway from the recently reopened Sunoco Logistics terminal in Marcus Hook (near Philadelphia). Ethane and propane exports from the terminal are expected to ramp up in about two years once the new Mariner East pipeline from southwest PA is completed.

So who’s buying the ethane, and who’s selling it?…

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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA DEP Pushes Back: We Did NOT Undercount Wells for Impact Fee
January 24, 2013January 24, 2013

A newly-minted Ph.D. from Penn State, Joel Gehman, got his first teaching job last year as an assistant business professor at the University of Alberta in Canada. He wasted no time in addressing the issue of “publish or perish” in academe. In May of 2012, even before he began his official duties at UA, he co-authored and published a paper titled, “Fracking Patents: The Emergence of Patents as Information Containment Tools in Shale Drilling.” The title itself tells you about Dr. Gehman’s proclivities when it comes to the issue of fracking. (Learn more about his views on his blog). This month Dr. Gehman is back as lead author of a new paper published in the journal Environmental Practice titled, “An Analysis of Unconventional Gas Well Reporting under Pennsylvania’s Act 13 of 2012.”

Dr. Gehman’s new paper makes the strong claim that the DEP did not exploit loopholes in the new Act 13 law to drain every last penny they could via the new impact fee/tax on oil and gas wells, thereby leaving up to $303 million uncollected (see our story Did PA DEP Undercount Act 13 Wells & Forfeit $303M in Revenue?). Michael Krancer, Sec. of the DEP, sent a letter to Gehman on Tuesday with some pretty strong claims of his own…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Controversy Continues Over PA DEP Water Testing Near Frack Sites
January 24, 2013January 24, 2013

In November, MDN told you about a new controversy that began when PA State Rep. Jesse White (Democrat from the Pittsburgh area) claimed the PA Dept. of Environmental Protection was knowingly covering up water well testing data that may “prove” fracking activities in some cases are contaminating groundwater supplies (see PA DEP Accused of Skewing Water Tests from Wells Near Drilling). The DEP immediately responded that White and those claiming there’s a cover-up are wrong. The Marcellus Shale Coalition also jumped into the debate to shine a light on White’s anti-drilling tendencies (see MSC Responds to Allegations PA DEP Skews Drilling Water Tests). It does appear White has an ongoing blood feud with Range Resources, but in fairness, he contacted MDN to assert he is not anti-drilling.

The latest round in this controversy comes from an article that appears in the Beaver County Times on Tuesday. The article is perhaps the best we’ve seen that outlines what the controversy involves (although the article tends to the anti- side). In brief, it’s all about “Suite Codes” and whether or not the DEP intentionally did not order the appropriate tests in some cases of suspected water contamination—and in other cases did not report back full results from tests done. There are three Suite Codes potentially used by the DEP when ordering and reporting on water testing, as described in the article:

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Industrywide Issues | Pennsylvania | Statewide PA | Supply Chain

Marcellus Drillers Look for Partners to Supply Products/Services
January 23, 2013January 23, 2013

The Altoona-Blair County Development Corp. (ABCD) and the Blair County Chamber of Commerce partnered to host a seminar yesterday to help local businesses get a piece of the natural gas industry pie—or “plug into the supply chain” as it’s commonly referred to. The seminar was aimed at helping companies find business opportunities in the Marcellus Shale drilling industry, and although it was aimed at businesses in south central PA, the information shared will help businesses throughout the Marcellus/Utica region.

According to speakers at the seminar, one driller in particular who is new to the Marcellus is looking for business partners in the Marcellus to provide them with products and services. Who is that driller and whom should you talk to there? What types of businesses stand a good chance of getting business in the shale drilling industry? And where, geographically, are the best opportunities in PA? Read on…

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

Duke/Kent State Publish New Research on Marcellus Wastewater
January 23, 2013January 23, 2013

A new report by researchers at Duke and Kent State universities takes a close look at the wastewater produced in Marcellus Shale gas well drilling. The paper, titled “Generation, transport, and disposal of wastewater associated with Marcellus Shale gas development,” appears in the January issue of the journal Water Resources Research. MDN was not able to score a copy of the full article and so must rely on the abstract and the press release (below) to describe it’s findings. However, from what we’ve read, it appears to be a careful, balanced and scientific look at the issue of drilling wastewater.

What did the researchers find? Shale wells produce about 10 times more wastewater than conventionally drilled wells, but they produce 30 times more natural gas. That is, shale wells are far more efficient and produce less wastewater per amount of gas produced than conventional wells. However, there are so darned many shale wells (in the Marcellus and other shale plays), the sheer volume of wastewater threatens to overwhelm the ability to deal with it.

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Energy Companies | Lycoming County | Pennsylvania | Seneca Resources

Seneca Resources: Impressive Results for 6 PA Marcellus Wells
January 22, 2013January 22, 2013

Seneca Resources, the drilling arm and subsidiary of National Fuel Gas Company, released a brief statement today announcing some very impressive initial flow rates on six recently completed Marcellus Shale wells in Lycoming County, PA—some of the best results in the Marcellus we’ve seen:

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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Research | Statewide PA

PA NatGas Pipelines: Coming to a Roadway Near You?
January 22, 2013January 22, 2013

An excellent report on natural gas pipelines in Pennsylvania issued in December has just come to our attention. The report (full copy embedded below) was created by PA Gov. Tom Corbett’s Energy Executive, Patrick Henderson, as a requirement under the state’s new Act 13 drilling law. The report provides a brief history of natural gas pipelines in the state with an excellent overview of how pipelines are regulated and who regulates them, followed by 16 recommendations for lawmakers to consider in crafting new policies.

Among the recommendations: Run new pipelines along existing local and state road right-of-ways; make it easier to share pipeline capacity without forcing a pipeline into becoming a public utility (with the associated nightmare of heavy regulation); and the state’s Public Utility Commission should create and maintain a comprehensive map displaying the routes for all shale gas pipelines.

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Broome County | Chenango County | Delaware County | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Schoharie County | Susquehanna County | Williams

New Marcellus Constitution Pipeline Announces “Final” Route
January 21, 2013January 27, 2013

After more than a year of work, Williams has finalized the route for the new Marcellus Shale Constitution Pipeline that will run from the heavily-producing Marcellus Shale gas fields of Susquehanna County, PA all the way up to Schoharie County, NY, where the pipeline will connect with two large interstate pipelines: the Iroquois and the Tennessee. A copy of the map showing the “final” route is embedded below.

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Auditor General Targets State’s Marcellus Drilling Industry
January 21, 2013January 21, 2013

Pennsylvania Dept. of Environmental Protection (DEP): Prepare for a painful anal exam, coming courtesy the newly elected PA Auditor General Eugene DePasquale. That was the gist of a letter sent by DePasquale to Michael Krancer, Secretary of the DEP, on DePasquale’s first day on the job (a copy of the full letter is embedded below).

The DEP’s response to DePasquale? Bring it on…

Read More “PA Auditor General Targets State’s Marcellus Drilling Industry”
Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pennsylvania General Energy | Statewide PA | Universal Well

PA Frack Pumps Converting to Use LNG for Fuel
January 21, 2013January 21, 2013

EQT was the first driller in the Marcellus Shale to convert a drilling rig to run on electricity produced by engines using an LNG/diesel mix (see this MDN story). CONSOL was next to experiment with converting some of their rigs to use LNG/diesel (see this MDN story). Then Seneca Resources, the gas drilling arm of National Fuel Gas Company, announced two of their drilling rigs will use 100% LNG as fuel (see this MDN story).

What started as a trickle is turning into a flood in Pennsylvania and throughout the Marcellus/Utica region and beyond. More companies are in the process of converting fleets to run on LNG or a mix of LNG/diesel. These new conversions will not only power initial drilling, but will also power the massive pump engines and heavy equipment used in the fracking process itself…

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Allegheny County | CONSOL Energy | Energy Companies | EQT Corp | Lease & Royalty Payments | Pennsylvania

Pittsburgh Airport Wants More $ from CONSOL…After Accepting Bid
January 18, 2013January 18, 2013

The story of the Pittsburgh International Airport’s acceptance of a bid from natural gas driller CONSOL Energy to drill on and under airport property, a bid that would provide less than half the money that a bid from EQT would have provided, continues to get curiouser and curiouser (see Inside Job? Pittsburgh Airport Leases Land to CONSOL for background and MDN’s original comments).

Apparently MDN isn’t, as we had thought, the only one who noticed this deal smells to high heaven. The latest news: PIA is negotiating with CONSOL to get them to raise the signing bonus, which is now rumored to be somewhere in the neighborhood of “$35 million to $40 million.” That’s certainly better, but still not has high as EQT’s offer of a $44 million bonus payment.

And what’s with “negotiating” after a bid has been accepted? A bid is a bid—you accept or reject it, especially if a public agency is involved. You don’t accept an offer and then promptly start negotiating to change it! Something is still very “off” about all of this…

Read More “Pittsburgh Airport Wants More $ from CONSOL…After Accepting Bid”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

Looney Toons Anti-Fracking Celebrities Visit Montrose, PA
January 18, 2013January 18, 2013

Yesterday John Lennon’s widow Yoko Ono and son Sean Lennon, along with reliably left movie star Susan Sarandon, boarded a Mercedes tour bus in New York City (burning gobs of diesel, a hated fossil fuel) and headed to the Montrose area of northeastern PA to “tour” drilling and compressor plant sites, visit with the commoners, and make pretentious pronouncements about how gas drilling is killing everyone and everything.

Ono and Lennon, in a bid to boost their non-existent public profiles, started a group last year called “Artists Against Fracking,” which is really kind of funny. Neither Ono nor Lennon can hold a tune in a bucket (see this hysterically funny video of them singing a song about fracking). But perhaps the “art” in “artists” comes from the pornography the 79 year-old Ono creates (see this story about her 2012 “fashion line for men”).

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Bradford County | Industrywide Issues | NG Vehicles | Pennsylvania

Northeast PA Convenience Store Chain Installs CNG Pumps
January 18, 2013January 18, 2013

In what seems to be a flood of news about CNG (compressed natural gas) filling stations popping up for vehicles, a convenience store chain in the Marcellus-rich area of northeastern PA is in the process of installing CNG filling pumps at three (so far) of it’s 70 stores in PA and NY.

One of the three locations—Towanda (Bradford County), PA—is having its “grand opening” today, but the new pump has already been operating for about month. Towanda is the very first public CNG filling location in northern PA:

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Industrywide Issues | Lycoming County | Pennsylvania | Violence

PA Marcellus Drilling Site Vandal Gets Probation, Told “Grow Up”
January 18, 2013January 18, 2013

In what can only be called an act of utter stupidity, a 21-year-old man from Trout Run, PA, vandalized and damaged a bunch of expensive equipment and the environment last August at a drill site in Lycoming County, PA. Was he drunk? An anti-drilling crusader? Showing off for his girlfriend? We don’t know the details or his motivation—but at a sentencing hearing yesterday (where he got probation), the judge told him to “grow up.”

The punch line? “He recently got work with another natural gas company, court records state.” Let’s name names:

Read More “PA Marcellus Drilling Site Vandal Gets Probation, Told “Grow Up””
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Newly Elected PA Auditor General Targets DEP First Day on Job
January 16, 2013January 16, 2013

Keeping a campaign pledge—because it’s always good to keep a pledge if you’re an anti-drilling Democrat, but it’s OK to conveniently forget all the other pledges you made—the newly sworn-in Auditor General for Pennsylvania, Eugene DePasquale, has targeted the state Dept. of Environmental Protection (DEP) in what can only be described as a political attack in his very first day on the job:

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Allegheny County | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Man Bites Dog: Pittsburgh Law Firm Opens Operation in Houston
January 16, 2013January 16, 2013

In the news business, no one wants to run a story along the lines of “dog bites man”—that’s not news. But when the story is “man bites dog,” that’s news. This is one of those stories. Hardly a week goes by that MDN does not read about a law office expanding it’s practice somewhere in the Marcellus or Utica Shale region, many times it’s a branch office of a large Houston, TX law firm opening up in the Marcellus region. Such announcements are (let us be honest) self-serving advertisements to try and get business. Nothing wrong with that! But it’s not something MDN readers will be interested in reading about.

This time, however, a law office expansion is news. Why? Because it’s not a big Houston energy law firm setting up shop in Pittsburgh, but the other way around. For MDN, the story points out how the Marcellus Shale has changed the energy game in the U.S. and is, ever so gradually, shifting the center of power in the energy universe from Houston to Pittsburgh…

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