Statewide PA

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    PA Natural Gas Production Hits New All-Time High in 1Q18

    Yesterday, the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for Jan-Mar 2018 (full copy below). It shows natgas production rose 9.9% compared to the same period last year. It also shows the number of producing wells is up 9.1% from last year. Total natural gas production volume was 1,441.2 billion cubic feet (Bcf), and the number of producing wells in 1Q18 was 8,402 (of which 7,913 were shale wells). The biggest news is that once again 1Q18 saw the highest quarterly production of natural gas in the state–ever. The previous quarterly report had been the highest ever until this report (see PA Natural Gas Production Hits Another All-Time High in 4Q17). Two-thirds of the state’s natural gas production comes from four counties: Susquehanna, Washington, Bradford and Greene. The #1 county for natgas production in 1Q18 was, as it was in each quarter of 2017, Susquehanna County, in the northeastern corner of the state. The #1 producing driller in Susquehanna County is Cabot Oil & Gas. Here’s the full 1Q18 natural gas production report from the IFO…
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    PA DEP Hellbent to Ram Through 250% Hike in Shale Permit Fee

    Pennsylvania Gov. Tom Wolf’s Dept. of Environmental Protection (DEP), the agency charged with overseeing oil and gas drilling in the state, “blindsided” the shale industry in February with a proposal to hike the fee required when submitting an application to drill a new shale well (see PA DEP Plans to Raise Marcellus Well Permit Fee by 250%). The current fee is $5,000. The proposed new fee is $12,500–or 2.5 times (250%) higher. We understand…the DEP has fewer people working there than it once did and needs to hire more help. However, the DEP wants to slap this insanely high fee on shale drillers to (in part) cover the expenses associated with non-shale activities! According to the Pittsburgh Post-Gazette, the shale permit fees will, “fund the broad scope of the [DEP] office’s operations, including its oversight of traditional [i.e. conventional] oil and gas wells, gas storage wells, abandoned wells and earthmoving activities.” How is it, in any sense, fair to hike the fees of shale drillers so DEP agents can better keep an eye on non-shale wells? The DEP plans to steamroller this increase through. Last week the DEP’s own Environmental Quality Board approved the increase. The next step is to publish a notice about the increase in the Pennsylvania Bulletin. That will trigger a 30-day public comment period. However, don’t look for the fee increase to happen right away. It appears DEP thinks they’ll have a royal fight on their hands (which they will), because they said the fee increase won’t happen until 2019 or maybe even 2020…
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    Towns Compete in PA DEP Hunger Games to Grab $12.6M of ME2 Cash

    Que the music with dramatic drums, cymbals and trumpets. Camera A, zoom in on Secretary McDonnell. The whole state is watching. It’s time for the Pennsylvania Dept. of Environmental Protection (DEP) Hunger Games to begin! In February Sunoco Logistics Partners agreed to pay a massive (historically high) $12.6 million fine to the PA Dept. of Environmental Protection (DEP) for “permit violations related to the construction of the Mariner East 2 pipeline project” (see Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction). Sunoco’s ME2 construction activities caused a few erosion issues here and some drilling mud leaks there–so-called “harms” to the environment. Surely some of the massive, historically high $12.6 million fine will be used to “fix” those problems, right? Wrong. Sunoco had to pay twice–pay to clean up the problems AND pay the fine. The fine was essentially a shakedown, Sunoco had to pay it or they would not be allowed to resume construction work on ME2. In April the DEP announced a new program to distribute the $12.6 million of fine money (see PA DEP Hunger Games Competition to Distribute $12.6M in ME2 Money). In Hunger Games tradition, the DEP is conducting a lottery for the 85 municipalities along ME2’s path, allowing those “districts” to submit begging proposals to request some of the money for programs in their district. The contestants have 45 days, from May 7 to June 20, to make a grab for the cash (i.e. submit a grant application). Here’s how one town in Lebanon County is preparing what they hope is a winning entry–their chance to grab some of ME2’s money…
    Read More “Towns Compete in PA DEP Hunger Games to Grab $12.6M of ME2 Cash”

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    Faux “Conservative” PA Energy Group Launches Promoting Solar/Wind

    Last week at a press conference an organization calling itself the Pennsylvania Conservative Energy Forum (PennCEF) officially launched. The group says it, “seeks to provide a conservative voice in the state energy policy debate, supporting common-sense, all-of-the-above energy solutions that are good for the economy, grid and national security, and the conservation of our state’s natural resources.” PBS’ StateImpact Pennsylvania, a mouthpiece for Big Green groups, opens its glowing article of the new “conservative” organization this way: “A group of political conservatives wants a voice in the state’s energy future.” Big red flag when StateImpact writes positively about a “conservative” group. We read the StateImpact article, located the PennCEF press release from last week, and looked over their website in detail. It appears PennCEF promotes an “all of the above” energy philosophy–EXCEPT fossil fuels, which are THE major source of energy today and for the next several generations. The use of the phrase “all of the above” used by PennCEF sounds eerily like what Lord Obama used to say. He said “all of the above” but meant he would pick the winners and losers. Solar and wind are the winners, fossil fuels the losers. Which is not truly an “all of the above” philosophy. We scoured the PennCEF website and a single reference (on an infographic) to natural gas. Nothing else about shale gas and its role in a clean energy future. We reviewed the Executive Leadership Council bios, the people who run the organization, and found Big Green, Big Solar, Big Wind, and Big Libs among those steering the organization. Our conclusion? There’s nothing “conservative” about PennCEF–other than a misappropriation of the word conservative…
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    PA House Bill to Neuter SRBC, DRBC Makes It to First Base

    As we reported in April, a Pennsylvania House of Representatives member, Dan Moul (Republican from Gettysburg), introduced a bill, House Bill (HB) 2222, that would replace the Delaware River Basin Commission (DRBC) and Susquehanna River Basin Commission (SRBC) authority to regulate groundwater by vesting that authority solely in the hands of the state Dept. of Environmental Protection (see PA House Bill Would Neuter SRBC, DRBC Regulation of Ground Water). Moul’s ire is particularly focused on the SRBC and how the organization has interfered with (and charged a lot of money to) big water users, like farmers, in Moul’s district. It is about perceived abuses by the SRBC. That appears to be the bee in Moul’s bonnet. So he’s taking aim at removing the guts of both SRBC and DRBC and placing their power in the hands of the PA DEP, which presumably Moul thinks would be more amenable to the legislature with regard to water policies. While the DRBC is without question a rogue organization that needs reigning in, our impression of the SRBC has been, on balance, positive. SRBC doesn’t try to regulate fracking the way DRBC is attempting to do. At any rate, the point of this post is that we noticed Moul’s bill actually has some traction and has been assigned out to the House State Government Committee for consideration. A bill must first go to a committee and be reported out before it can go to the floor for a full vote by all members. This is step #1, or using a baseball metaphor, the bill made it to first base…
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    Sunoco Appealing ME1 Shutdown to Full PUC to Overturn Lib Judge

    As MDN reported last Friday, fossil fuel opponents finally located a liberal judge that they could persuade to abuse her judicial power to shut down not only construction on the 98% complete Mariner East 2 (ME2) pipeline project, but also shut down Mariner East 1 (ME1), a pipeline that has been working with no issues or problems for over a year (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). It is an outrage that a single judge can inflict such economic damage. Sunoco responded by saying they are pursuing “all legal remedies to overturn this Order, including our right to request PUC review of the Order, which will be filed within the next seven days.” If/when Sunoco appeals to the Public Utility Commission (PUC), the full commission can and likely will meet right away, in a non-public hearing, and could restore ME1’s right to flow NGLs immediately, overruling the judge’s overtly political order. It could happen as fast as this week, although it’s more likely to happen next week. In the meantime, every day ME1 is down, great economic harm comes to companies like Sunoco and their customers that use ME1, primarily Range Resources…
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    Utica Shale Beginning to Get More Love in PA and WV

    The Utica Shale is starting to get more love. No, not in Ohio where the play is already well-loved, but in Pennsylvania and West Virginia. Although it’s always been known that the Utica underlies the Marcellus and in fact covers a larger geography than the Marcellus, drillers have not targeted the Utica nearly as much outside of OH. Why? Because it’s nearly twice as deep as the Marcellus and costs more to tap it. The Marcellus is roughly a mile below the surface, and the Utica roughly two miles below. However, there is renewed interest in the Utica in PA and WV in 2018. Most of the Utica wells drilled in PA have, so far, been drilled by Hilcorp. JKLM is targeting the Utica in Potter County. SWEPI (Shell) has drilled a few Utica test wells, as has EQT, CNX and others. Most recently CNX and Seneca Resources mentioned targeting the Utica in their quarterly updates. Throw it all in the mix and what it spells is more Utica drilling on the way in what has, until now, been largely Marcellus country…
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    Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice

    Anti-fossil fuel nutters have finally, after months and years, scored a minor victory. They’ve been shopping to locate an ultra-liberal judge who would ignore the law and instead issue edicts from the bench–to shut down both the Mariner East 1 (ME1) and Mariner East 2 (ME2) pipeline projects. Yesterday Elizabeth Barnes, an administration law judge for the Pennsylvania Public Utility Commission (PUC), unilaterally ordered Sunoco Logistics Partners to “cease and desist all current operation, construction, including drilling activities on the Mariner East 1, 2 and Mariner East 2X pipeline” in West Whiteland Township (Chester County, PA). The judge also moved to shut down all operations of Mariner East 1 across the state, ruling that she is “enjoining Respondent from operating Mariner East 1.” It is a breathtaking display of arrogance and seizure of power that does not belong to her. The ruling runs counter to other decisions regarding these critical pipeline projects–projects that have been thoroughly vetted by numerous regulatory agencies. Construction of ME2 is 94% complete! ME1 has been flowing NGLs for over a year–with ZERO problems! And yet Barnes has shut it all down, with the stroke of a pen. We predict it won’t last long…
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    Once Again Wolf Pushes DCED Sec. to Support Severance Tax

    Dennis Davin – Sec. DCED

    Secretary of the Pennsylvania Dept. of Community and Economic Development (DCED), Dennis Davin, is once again doing what he’s told, in order to keep his job. The DCED’s job is to promote new business to locate in PA, not drive it away. Davin is a bright guy. He knows that higher taxes drive businesses away. But he works for the most liberal governor in America (well, maybe second most, next to Andrew Cuomo). And when Wolf says “Jump!”, Davin has to ask, “How high?” That’s the only explanation we can think of for why Davin continues to support an insane severance tax on top of the existing impact tax–a double tax that would, along with the already-high corporate income tax in PA, force PA into the role of having the highest effective oil and gas taxes in the country. Davin wrote an editorial recently appearing in the leftist Pittsburgh Post-Gazette, supporting his boss’ insane plan for a severance tax. It’s not the first time Davin has had to stoop this low. He did the same thing last year (see PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax). Poor Dennis…
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    PA Senate Passes Bill Making Pipeline Trespass a Felony

    It’s about time! One of the favorite tactics of antis to fall back on when they don’t win in court is to simply take the law into their own hands (i.e. anarchy). If the courts or a regulatory body (like FERC, or the PA DEP) refuse to stop a critical energy infrastructure project, like a pipeline, antis take it upon themselves to trespass, illegally, in an attempt to block work on the project. They call it “free speech.” It’s nothing of the sort. To trespass is, by definition, breaking the law. Antis know this. However, such a violation of the law is currently only a misdemeanor–a lessor penalty. The PA Senate has just approved a bill that would make infrastructure trespass for pipelines and other key energy infrastructure a felony, giving antis more incentive to behave themselves. Most Republican Senators (except a few Philly RINOs) voted for the bill. Most Democrat Senators (who prefer to be lawless), voted against it. We can only hope the bill gets adopted–it now goes to the House–although with Wolf as governor, we’re not confident it will get signed into law…
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    Radical Groups Band Together to Pressure Gov Wolf to Ban Fracking

    A mishmash of national Big Green and local Little Green (funded by Big Green) groups from Pennsylvania have banded together in order to apply pressure on (i.e. bully) a weak-willed governor, PA Gov. Tom Wolf. A coalition of anti-fossil fuel groups, calling themselves Pennsylvania Fracking Health Impacts, has begun protesting Wolf outside of fundraisers and other venues. Their demand? That Wolf enact an immediate moratorium (i.e. ban) on all fracking in the state. One of the useful idiots providing support to the new coalition is actor and fractivist Mark Ruffalo (who plays The Incredible Hulk in Marvel’s Avengers movies). Ruffalo trash-talked Wolf and said that Wolf, “has done nothing to help the many families who have been harmed by fracking. Now I am joining with the Pennsylvanians who are launching this public health impacts campaign to help shine a light on this unjust tragedy and ask when will Governor Wolf act?” Just because Ruffalo is a good actor doesn’t mean he’s smart. Far from it! He’s about as stupid as they come. Talented actor–you can’t take that away from him. But when it comes to actually having a brain? Sadly, he was passed over. The aim of the new group in PA is to see if they might be able to shame and pressure Wolf into shutting down the Marcellus industry. We seriously doubt that will happen, but hey, one never knows when it comes to Lib Dems…
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    DEP Continues to Block Use of Brine on PA Dirt Roads

    Correction: PIOGA contacted MDN to let us know it is only brine from conventional (non-shale) wells that has been allowed to be spread on PA roadways–NOT brine from shale wells. Thanks to PIOGA for letting us know! We have tweaked the story below to reflect the change.

    One more way the Pennsylvania Dept. of Environmental Protection (DEP) is hassling both the PA conventional industry and local towns is via an ongoing embargo against the use of brine–water from the depths that comes out of drilled wells for months and years as the well is producing natural gas. Drillers need to dispose of the brine–it’s an expense. Brine is nothing more than very minerally water. It’s called brine because it’s “salty.” An ongoing beneficial deal was struck by drillers and local towns in years gone by. Towns need a source of water to spread on dirt roads during summer. Drillers have an overabundance of brine. So drillers have been giving their brine to towns, for free. The towns don’t have to pay to buy water, and drillers don’t have to pay to dispose of it. A real win/win. Except a rabid anti from Warren County (no doubt prompted and sponsored by Big Green groups) challenged the arrangement last summer. The challenge was against a DEP policy that allows shale brine to be used by towns. The matter went to the Environmental Hearing Board (EHB), a special court set up to hear appeals of DEP decisions. Out of the blue, the DEP slammed the door on allowing towns to use brine, supposedly waiting to see what the EHB decides. The EHB just decided–that the DEP was well within its rights to allow towns to use brine for road spreading. However, the DEP still refuses to lift the ban, using the excuse they’re reviewing the policy even though the EHB says it’s OK. Towns did not budget money to buy water for dirt roads, which they will now have to do. Thanks DEP! You’ve just hosed (pun intended) a number of towns in rural locations with your bureaucratic, rear-end covering excuses…
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    NJ & PA Could Have Saved $1.3 Billion if PennEast Were Live

    Click image for larger version

    Too bad it takes so long to approve a new natural gas pipeline like PennEast–a $1 billion, 120-mile, 36-inch pipeline from Dallas (Luzerne County), PA to Pennington (Mercer County), NJ. Why does it take so long–years, in fact? Well there’s the federal regulatory process. But then there are the multiple, ongoing challenges from Big Green groups, people who irrationally hate all fossil fuels. Big Green launches lawsuit after lawsuit in an attempt to bury projects like PennEast in legal horse manure. One of the chief purveyors of said horse manure is THE Delaware Riverkeeper (Maya van Rossum). What if PennEast had been built two years ago, right after filing their well-laid-out, safe plan? If it had been built, consumers in PA and NJ over the past two winters would have saved $1.3 billion, according to a new study by Concentric (full copy below). Can you imagine the good things that could be done with an extra $1.3 billion in the hands of private citizens? All of the economic benefits that would ripple through the economies of PA and NJ? Instead, all of that benefit is being blocked by a few radical greens…
    Read More “NJ & PA Could Have Saved $1.3 Billion if PennEast Were Live”

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    Upstream PA Conference: Marcellus Shale Changed the Game

    Dr. Terry Engelder – closing presenter

    Last week MDN editor Jim Willis had the pleasure of presenting at Shale Directories‘ PA Upstream 2018 event with the theme: “The New Upstream: 10 Years Later.” There were a number of great presentations–from people like David Spigelmyer, president of the Marcellus Shale Coalition, Jude Clemente, analyst and author who frequently writes for the Forbes magazine website, and Pennsylvania House Speaker Mike Turzai. One quick story and some shameless name-dropping. Jim is always jazzed to meet people who read his stuff. Writing is a lonely affair, so getting to industry events every now and again is a great chance to connect with readers. In the hallway ahead of Speaker Turzai taking the stage, Jim was introduced to him (for the first time). When Speaker Turzai heard what Jim does–writing Marcellus Drilling News–he said: “Oh yeah, I read your stuff all the time!” Which put a big smile on Jim’s face. Jim also connected with long-time friend George Stark from Cabot Oil & Gas; another long-time friend, Rick Stouffer, from the always excellent Kallanish Energy, and with Dr. Terry Engelder, the “father of the Marcellus.” Dr. Engelder is now retired from PennState and keeps himself busy writing and speaking. What a treat to meet Dr. Engelder for the first time, after hearing of and writing about him for years! At any rate, as you can imagine, when you give a presentation, your mind is not totally engaged with the presentations you’re hearing. You’re thinking about the presentation you’re about to give! Fortunately, another MDN friend, Nicole Jacobs (from Energy in Depth), was at the event and recorded the highlights…
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    Average Workers at Top Marcellus Drillers Make $100K+ Salary

    The average worker who works for producers (i.e. drillers) in the Pennsylvania Marcellus makes among the highest average salaries of any industry in the state. Looking at six of the state’s top Marcellus drillers, the average worker made $113,610 last year! That’s an average taken from workers at CNX Resources, Range Resources, Chesapeake Energy, Southwestern Energy, EQT and Cabot Oil & Gas. We hasten to add not “all workers” but “average” or “median” workers–meaning there are people who make below that number and people who make well above that number. It also means the majority of Marcellus workers in those companies made at least $100,000 per year. Those working for oilfield services (OFS) companies like Halliburton, Baker Hughes and others didn’t fare quite as well, making an average of $52,000-$80,000 per year. Still, hey, it ain’t bad money! Here’s a look at the average wage for top Marcellus drillers and the OFS companies that serve them…
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    PA Green Group Uses Kids to Sue Feds for “Indifference to Science”

    In August 2015, MDN told you about a lawsuit brought by a group of left coast radicalized children who want to force the federal government to become communist and “force action” on mythical climate change (see Group of Kids Sues U.S. Govt to Force Action on “Climate Change”). There have been a number of legal twists and turns since that time, but the bottom line is the U.S. Court of Appeals for the Ninth Circuit (in California), often called the “Ninth Circus” because of the clowns who pass for judges who sit on the bench, in March ruled the lawsuit can proceed (see 9th Circus Allows Climate Lawsuit by Radicalized Kids to Proceed). What we didn’t know/realize is that Pennsylvania has its own version of the same lawsuit playing out. The Philadelphia-based Clean Air Council (radical enviro group) glommed onto two children to perpetrate the same kind of fraudulent lawsuit in federal court in the Keystone State. In November 2017, CAC and the two kids they’ve tricked sued Donald Trump (President), Scott Pruitt (EPA), Rick Perry (Dept. of Energy) and Ryan Zinke (Dept. of Interior) claiming their collective actions in “rolling back” environmental protections (put in place by Lord Obama) shows “reckless indifference to science” and should not be allowed. No, this is not the script for a sitcom. This is real. On May 3, the defendants (the federal government) filed a motion to dismiss this nonsensical lawsuit. On May 11, the CAC and radicalized kids responded asking the court to not dismiss…
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