Pennsylvania 506 - Marcellus Drilling News

Northeast PA Starting to Feel the Dry Gas Drilling Slowdown

February 20, 2012February 20, 2012

The decision by Chesapeake Energy and other drillers to reduce drilling in dry gas (methane only) areas and instead concentrate on wet gas (natural gas liquids) areas is already having an impact on Pennsylvania’s northeastern counties where drilling last year was extremely active. Rig counts are going down, and with them, the amount of drilling activity goes down. It ultimately impacts the local economy in those areas, as noted in a recent Scranton Times Tribune article.

Industrywide Issues | Jobs | Lackawanna County | Pennsylvania

PA CareerLink Offers Free Training to Work in Drilling

February 20, 2012February 20, 2012

Pennsylvania CareerLink announced they are offering a training program for those interested in working as roustabouts in the shale gas drilling industry for free for 20 people. The four- to six-week training course normally costs $2,500.

Drilling Liquids Spill at Chevron Gas Well in SW PA

February 20, 2012February 20, 2012

The Pennsylvania Department of Environmental Protection reports it is investigating a spill of condensate at a gas well in Washington County, in the southwestern part of the state.

Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Marcellus Shale Jobs in Southwestern PA

February 17, 2012February 17, 2012

Looking to land a job in the Marcellus Shale drilling industry? You’re not alone. According to Mike Forgione, a representative from the PA Institute of High Priority Occupations, there are a number of jobs available, including:

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

2012 PA Impact Fee Revenue of $180M – Where Will it Go?

February 16, 2012February 16, 2012

pie chart Pennsylvania finally passed new Marcellus Shale drilling legislation last week, and Gov. Corbett signed the new legislation into law on Monday of this week (see this MDN story). One of the key provisions, and certainly one of the most contentious, is a provision to collect a new impact fee. But let’s be honest among friends, it’s really just a tax (see this MDN story for why we call it a tax). Regardless of what it’s called, the new fee/tax will raise an estimated $180 million in new revenue for state and local coffers this year alone. So where will all that money go?

Six PA Counties to Receive $10M+ from New Impact Fee in 2012

February 16, 2012February 16, 2012

Washington County is among six counties in Pennsylvania that stand to receive more than $10 million in impact fee revenue this year from the newly adopted Marcellus drilling legislation signed into law by Gov. Corbett on Monday.

Butler County | Industrywide Issues | Pennsylvania | Taxation

Butler County Adopts New PA Impact Fee Ordinance in 2 Days

February 16, 2012February 16, 2012

Butler County, PA commissioners have already voted to adopt an ordinance to collect the newly created impact fee, just two days after the new law was enacted:

Gov. Corbett Signs New Marcellus Drilling Law

February 14, 2012April 16, 2026

private No public ceremony for the signing of historic legislation to regulate Marcellus Shale gas drilling in Pennsylvania. Monday evening, Gov. Tom Corbett’s office announced he had privately signed the new legislation into law. A detailed summary of the legislation is embedded below.

Among the key provisions in the final bill:

PA Finally Joins the Cracker Plant Sweepstakes

February 14, 2012February 14, 2012

It seems that Pennsylvania has finally woken up to the fact that Shell is about to decide where they will invest some $2 billion and generate thousands of new jobs by building an ethane cracker plant. One of three bills signed into law by PA Gov. Tom Corbett on Monday was a bill that,

Bradford County | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

Bradford County, PA: “The Recession Passed Right Over Us”

February 14, 2012February 15, 2012

A balanced article looking at arguments both for and against shale gas drilling posted on the 13-WHAM TV website begins this way:

EPA Investigation Launched in Washington County, PA

February 13, 2012February 13, 2012

Washington County is the most active county in southwestern Pennsylvania for Marcellus drilling, including most numbers of wells drilled, pipelines to transport the gas and compressor stations to power the pipelines. Word has just leaked that last September the federal Environmental Protection Agency (EPA) began a “multi-media” probe into drilling in Washington County. A multi-media probe means they analyze air, water and land impacts of drilling. Apparently the EPA doesn’t believe the PA Department of Environmental Protection can do its own job and needs an assist.

How Much Revenue will NE PA Counties Get from Impact Fee?

February 13, 2012February 13, 2012

Pennsylvania’s northeastern counties stand to bring in millions of new revenue this year under the impact fee that Gov. Corbett is soon due to sign. Once the legislation is signed, county governments will have 60 days to decide whether or not to adopt an ordinance adopting the new fee structure, along with the restrictions it imposes on a county’s ability to regulate drilling via zoning (see this MDN story). Each county is allowed to keep 60 percent of the total impact fee collected. The other 40 percent? That goes to the state. The 40 percent is the “spread the wealth around” compromise lawmakers needed to strike in order to pass the legislation.

Here’s a rundown on how much in new revenue northeastern PA counties stand to collect in direct fees, the 60 percent portion:

Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA’s New Tax on Drilling (er Sorry, Impact Fee)

February 13, 2012February 13, 2012

The new Marcellus drilling legislation passed by the Pennsylvania House and Senate (both controlled by Republicans), and due to be signed by Gov. Tom Corbett (also a Republican) is a great milestone. It places new restrictions on drilling and makes regulation of drilling across the state more even-handed. There are many things to like about the new legislation.

But it’s also a disappointment. The so-called impact fee is really just a tax trying to fly under the radar as a fee. Why a tax? Because the fee as originally proposed would stay in the areas where drilling happens, where drilling is having an “impact.” If a municipality has to repair roads, or spend more on emergency services and policing, or hire extra workers in government offices—that extra expense should be reimbursed. That’s what an impact fee is supposed to do.

PA DEP Fines Chesapeake Energy $565K for Three Violations

February 10, 2012February 10, 2012

gavel on money The Pennsylvania Department of Environmental Protection (DEP) yesterday fined Chesapeake Energy a total of $565,000 for major violations at three Marcellus Shale wells in Potter and Bradford counties in 2010 and 2011.

From the DEP press release:

Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

DOE Sec. Chu Goes to Pittsburgh, Promotes Shale Gas Drilling

February 10, 2012February 10, 2012

Secretary of the U.S. Department of Energy (DOE), Steven Chu, visited Pittsburgh on Wednesday. Part of his visit was to (sort of) promote shale gas drilling. Among other things, Mr. Chu said hydraulic fracturing can be done “in an environmentally responsible way.”

Centre County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Pro & Anti Drilling Increasingly Divides Along Party Lines

February 10, 2012February 10, 2012

With the new Pennsylvania law to regulate Marcellus drilling about to be signed by Gov. Tom Corbett, counties are already gearing up to vote on whether or not to accept the new impact fee provided for in the legislation. Although support or lack of support for Marcellus and Utica drilling cuts across political party lines, increasingly it tends to be Republicans in favor of drilling, and Democrats against. Take Centre County (State College area, smack in the very middle of PA) as an example, where commissioners are already planning a vote.