Where is Production Increasing (& Decreasing) in Marcellus/Utica?
Natural gas production in the U.S. has rocketed skyward in just the past few weeks. According to the experts at RBN Energy, “the abruptness and sheer strength with which production has surged” has “taken the market by surprise.” Gas production rose in every region of the country, but it rocketed in one region in particular. Yep, in the Marcellus/Utica. When you look at how much our region was producing on June 7, and then again on June 28, the difference in just those three weeks is astonishing. Production of natgas soared and was 600 million cubic feet per day higher on June 28 than three weeks prior. Amazing! But production did not increase in every area of the Marcellus/Utica region. In one area, production decreased. Below you’ll find out where production went up, and where it went down in the M-U in June…
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This one was easy to predict, because it follows a tried-and-true pattern used by leftists for decades. PA Gov. Wolf’s Administration has been fiddling with proposed regulations to cut down on fugitive methane emissions from drilling and pipelines for years. The regulations are known as General Permit 5 (GP-5) and General Permit 5A (GP-5A). GP-5 applies to pipelines and compressor stations, while GP-5A applies to well pads and drilling. In June, the PA Dept. of Environmental Protection, author of the revised regs, floated its final final final final version of the regs (see 
Southwestern Energy has taken the next step of appealing the “Briggs” trespass case to the Pennsylvania Supreme Court–a case of tremendous importance. In April, MDN brought you the news that Pennsylvania Superior Court had handed down a decision (known as the “Briggs” case) that has the power to greatly restrict, perhaps even stop, Marcellus drilling in PA (see 
Since taking office nearly four years ago, Pennsylvania’s left-leaning Democrat Gov. Tom Wolf has rigidly blocked any new shale leasing of state forest land. Leases and drilling prior to Wolf brought a bountiful harvest of revenue to state coffers. But Wolf, bowing to pressure from radical environmentalists, refuses any new drilling. In February the state Senate, controlled by Republicans, passed a resolution calling on Wolf to restart drilling in state parks (see 
Years ago when Sunoco Logistics Partners (aka Energy Transfer Partners) originally proposed and planned the Mariner East 2 twin pipelines from the edge of eastern Ohio through the entire length of Pennsylvania to the Marcus Hook refinery near Philadelphia, the completion date promised was the end of 2016. Little could Sunoco foresee the multiple lawsuits, regulatory hearings and illegal protest actions that would conspire to throw the project off schedule for more than a year and half. When pipeline companies plan such multi-billion dollar projects, they first get customers (drillers) to sign on the dotted line, guaranteeing there will be enough product (and revenue) to make the project worthwhile. Drillers *did* sign on the dotted line, and they’re still waiting. Waiting and now pressuring Sunoco to get the darned thing up and running. The pipeline itself is 98% complete–in the ground and connected. But an all-important 2% is still not complete, most of it in the Philly suburbs–Delaware and Chester counties. Sunoco continues to have problems with underground horizontal directional drilling and with ongoing litigation by towns in the Philly area. What to do, with customers breathing down your back? Sunoco has come up with an ingenious solution that is sure to send the crazies into orbit. Sunoco is asking the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) for permission to use part of an existing 12-inch pipeline in that area that previously carried refined petroleum products (things like gasoline, heating oil, and jet fuel), repurposing the pipeline to carry NGLs (ethane, propane, butane, etc.). This is only a short-term fix until the last bits of the full ME2 is up and running…
The PA Independent Fiscal Office (IFO) does a pretty good job of guesstimating how much impact fee revenue will get generated in the coming year, based on permit and producing wells activity this year. How good? Last year the IFO predicted that impact fee (equivalent of a severance tax) revenue would be $222 million for 2017 (see 
The radicals of Food & Water Watch (FWW), a disgusting organization, have done us all a huge favor! FWW is composed of some of the worst of the worst when it comes to anti-fossil fuel nuttery. They oppose everything, including low-carbon natural gas, if it’s called a fossil fuel. FWW issued a new “report” last week taking aim at the growing number of Marcellus gas-fired electric plants sprouting up around the state, replacing dirtier coal-fired plants. Only in the mind of a demented liberal is coal better for the environment than natgas. But we digress. FWW’s report is called “Pernicious Placement of Pennsylvania Power Plants: Natural Gas-Fired Power Plant Boom Reinforces Environmental Injustice.” Those alliterations are just ingenious, aren’t they? As part of the report, FWW published a comprehensive list of 48 planned, under construction, or recently commissioned gas-fired power plant projects in the Keystone State. Wow! What a great list! We’ve extracted the list itself and shared it below (so you don’t have to endure the full report). The focus of the report is the baseless charge FWW (and others) make that new power plant projects are built in poor, black areas–where the downtrodden can’t fight back against the machine that is Big Oil/Gas. FWW includes a map (see it below) that charts where “communities of color” (meaning concentrations of black people) live in the state, along with dots that show where existing and planned gas-fired plants are located. Take a look at the dots for planned plants. Almost none of them are near “communities of color!” Whoops. Some intern wasn’t paying attention when she drafted the report…
Perhaps the proposed legislation by PA Rep. Dan Moul (Republican from Gettysburg) to gut not only the DRBC (Delaware River Basin Commission) of its power to regulate groundwater, but also to gut the SRBC (Susquehanna River Basin Commission), is not so far off the mark after all (see 
There is nothing “bipartisan” about Tom Wolf, Governor of Pennsylvania. He’s a hard-left partisan all the way. Yet this year, for the first time since taking office, he signed a “bipartisan” budget on time–before the June 30 deadline. Wolf practically genuflected before the Republicans who control both the House and Senate in PA. This is the first budget Wolf has signed at all. The previous three annual budgets adopted during Wolf’s tenure were done so without his signature. So why did Wolf practically fall over himself to sign a budget that does NOT include a new severance tax, as he has requested each year since taking office? Simple: He’s running for reelection and wants to appear as if he’s actually governing. He’s attempting to smear a little lipstick on the pig of his awful tenure in office. Question is, will it work? Do people have the attention spans of gnats? Or will they remember the pain and suffering he inflicted by dragging out previous budgets for months? Pennsylvanians should understand that Wolf’s nicey-nice with the budget this year will completely evaporate next year (if he’s reelected). Back will be the hard-left partisan who lives under the lipstick…
Once again we’re talking about strippers. Uh, stripper *wells* that is. In 2012 Pennsylvania passed the Act 13 drilling law that includes an impact fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells targeting the Marcellus. All 45 of the vertical-only wells were fracked. Initially those wells produced more than 90 thousand cubic feet per day (Mcf/day), but by December of the year in which they were drilled, the wells produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day, arguing the word “any” is not a get-out-tax-jail-free card. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won the case in March 2017, exempting those wells from paying impact fees (see 
This year’s Pennsylvania budget deal is different from the previous three such annual budgets. One way it’s not different is that this year’s budget once again hits a new high–a massively bloated, morbidly obese $32.7 billion. Although the budget does not include any new taxes, it does increase spending in a number of areas, including “education” (i.e. teacher’s unions). Democrat Gov. Tom Wolf once again asked for a Marcellus-killing severance tax this year, but he didn’t really mean it. He knew he wouldn’t get one. So Wolf brokered a deal with House and Senate Republicans that leaves out a severance tax. In the previous three budgets Wolf demanded a severance tax and delayed adopting each budget by months, in an act of petulance and temper tantrum. Since this is an election year and Wolf is up for reelection, he decided to forgo the histrionics over a severance tax. So, we’ve dodged the tax bullet once again. However, if Wolf is reelected, expect him to double down and perhaps even shut down state government in order to get a severance tax. The tax battle will be super-nasty next year, you can count on it. Meanwhile, the Senate is due to pass the budget on Friday, and Wolf will sign it soon after…
Here’s the latest strategy in THE Delaware Riverkeeper’s ongoing war against fossil fuels, and against natural gas pipelines in particular: Pressure the Delaware River Basin Commission (DRBC) to revoke a permit granted by the agency to the Mariner East 2 (ME2) pipeline project on the flimsy basis that ME2 has “violated” the conditions of the permit. Frankly, we didn’t even know the DRBC had issued a permit for ME2. After all, ME2 is a state-permitted project and does not come under federal authority. We doubt the DRBC has legal authority to issue a permit for the project–but if no one challenges them, their authority stands. ME2 probably thought it easier to just get the permit and not squabble over it. According to Big Green mouthpiece PBS StateImpact Pennsylvania, the DRBC is actually considering Riverkeeper’s request. The problem with this latest strategy by Riverkeeper is that DRBC’s executive director, Steve Tambini, is so weak, he may fold like a cheap deck of cards and actually do it. Tambini, who has been a major disappointment since taking over from the ultra-leftist Carol Collier, seems happy to take his marching orders from Riverkeeper. We have to wonder if this latest strategy will bear fruit. A scary proposition. But Riverkeeper isn’t content to try and scuttle ME2 by pressuring the weak DRBC as its only strategy. Last week the DRBC filed a “groundbreaking” lawsuit against the ME2 project in U.S. District Court for the Eastern District of Pennsylvania, meant to stop the project by court order…