Statewide PA

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    PA’s Uneven Tax Treatment of Marcellus Industry vs. Amazon HQ2

    What if a private company wanted to locate in a state, bringing with it 243,000 direct and spin-off jobs with an average salary of $93,000? And what if that company invested billions of dollars in the state economy? No doubt the state (and local municipalities) would offer up plenty of incentives to ensure they get the business. Pittsburgh and Philadelphia (and the State of Pennsylvania) are doing just that–offering up all sorts of incentives to attract Amazon to build its HQ2 project in the Keystone State–a project that promises a huge investment and thousands of employees. However, Amazon’s HQ2 will not employ 243,000 people and inject billions–not anywhere close. But there is an industry that is ALREADY doing exactly what we’ve outlined in the opening sentence. The Marcellus Shale industry has created 243,000 direct and indirect jobs (with an average salary of $93K per year) and has already pumped billions of dollars into the economy. And yet the State of PA and places like Pittsburgh and Philly are, in many ways, fighting against the industry! They don’t offer tax breaks, instead they offer new tax increases! What’s going on here? Why does PA treat Jeff Bezos and Amazon one way, and the Marcellus industry another? Why does PA pick “winners” and “losers” economically? That’s the important topic of a column we recently spotted by Lowman Henry, chairman and CEO of the Lincoln Institute…
    Read More “PA’s Uneven Tax Treatment of Marcellus Industry vs. Amazon HQ2”

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    PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline

    Once again, in what appears to be a pattern, the Pennsylvania State Dept. of Environmental Protection (DEP) is caving to pressure from virulent anti-fossil fuelers. This time in regard to Shell’s proposed Falcon Ethane Pipeline project. Shell is working on an ethane “pipeline system” with two “legs” to feed the mighty cracker plant being built in Monaca, Beaver County (see Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker). Last October Shell filed an application with the PA DEP for the PA portions of the pipeline, some 60 miles of the total system (see Shell Files PA Application for Ethane Pipe to Feed Cracker Plant). The DEP advertised an official comment period for the project on Jan. 20, giving interested parties until Feb. 20 to file their comments–an entire month (see PA DEP Invites Public Comment on Shell 60-Mile Ethane Pipeline). However, one month isn’t enough time for anti-drillers to marshal the faithful to try and sink the project. FracTracker Alliance, an anti-fossil fuel organization, colluded with other groups to put the word out to flood the DEP with demands to keep the comment period open. The DEP folded, like a flimsy house of cards, and has now extended the comment period to April 17th along with three public hearings (circus freak shows), which will give the FracTracker faithful time to mount publicity and legal offensives to try and stop the project. If the pipeline doesn’t happen, work at the cracker plant stops. Which, of course, isn’t going to happen. But it illustrates the true aim of FracTracker and other virulent (way, way, WAY outside the mainstream) anti-fossil fuel groups…
    Read More “PA DEP Caves to Pressure, Extends Comment Period for Shell Pipeline”

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    Williams 17/18 Update: Full Atlantic Sunrise Startup Slightly Delayed

    Last week Williams, the largest pipeline/midstream company operating in the Marcellus/Utica region, released its fourth quarter and full year 2017 update. While the company lost $342 million in 4Q17 due to “non-cash charges related to Tax Cuts and Jobs Act of 2017,” the company made a profit of $871 million for the year, up 100% from making $431 million in 2016. The company brought five big projects online in 2017–Gulf Trace, Hillabee Phase 1, Dalton, New York Bay and Virginia Southside II–which added an extra 2.8 billion cubic feet per day of capacity and led to record-breaking volumes of gas flowing along the Transco pipeline (see Williams Marcellus Buildout Leads to Record Transco Pipe Volumes). However, it was the Atlantic Sunrise Pipeline project that stole most of the limelight in last week’s update. Atlantic Sunrise is a $3 billion, 198-mile pipeline project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County, PA. The pipeline will be ready in July, on schedule. However, an associated compressor station will take “a few months longer” than July, meaning the pipeline won’t be online until early fall sometime (not on schedule). Below is last week’s Williams update, a copy of the latest PowerPoint presentation, and excerpts from the analyst phone call…

    2/22/18 Update: Our original thought was that with a delay in the compressor station starting up, the entire pipeline would be delayed in starting up. Not true! We reached out to Williams for an explanation for how the pipeline could stay on schedule without the compressor going online initially. We got this statement back: “The gas that is placed into the system by producers enters the pipeline at very high pressures. In addition, we have existing Transco compression near the terminus of the line that is pulling the gas through the line. This push/pull dynamic is what allows gas to flow through the pipe prior to the full commissioning of the project’s compression.” So there you have it. While the full startup will be slightly delayed, the pipeline will still flow much of the volume intended–on schedule in July.
    Read More “Williams 17/18 Update: Full Atlantic Sunrise Startup Slightly Delayed”

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    PA DEP Wants to Boost Shale Fees 250% to Help Fund Non-Shale Work

    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 last week 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. The DEP Oil and Gas Technical Advisory Board (TAB) met yesterday to discuss the permit fee increase. It was DEP Deputy Sec. Scott Perry’s job to be the point guy, the spear catcher to stick up for this insane hike in fees. We understand…The DEP has fewer people working there than it once did and needs to hire more. (Although the DEP somehow found half a million bucks lying around to hire 92 interns to help out. See PA DEP’s Short-Term Solution to Get More Help – Hire 92 Interns). PA Gov. Tom Wolf wants to slap a new severance tax on shale drillers to give their money away to Philadelphia teacher’s unions. The DEP (an executive agency, part of the Wolf administration) is taking a page from Wolf’s playbook. 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: “Mr. Perry said they [shale permit fees] 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? Kind of like robbing Peter to pay Paul…
    Read More “PA DEP Wants to Boost Shale Fees 250% to Help Fund Non-Shale Work”

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    ME2 Pipeline’s $12.6M Shakedown Money Won’t Pay for Cleanup

    Last week MDN brought you the news that Sunoco Logistics Partners had 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). Supposedly Sunoco’s ME2 construction activities have 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 Sunoco is paying will be used to “fix” those problems, right? Wrong. Every single penny is going to other pockets (black holes) within the DEP, proving our contention that this was nothing more than a shakedown by a government agency. Essentially Sunoco had to pay DEP mobsters a “bribe” in order to restart work on the ME2 project. The DEP had Sunoco by the short hairs, blocking any new work until the money was paid. So what about “cleaning up” the problems created by ME2 construction? “[I]t’s highly likely that Sunoco will be required to clean up the damage caused by its botched construction, in addition to paying the penalty,” according to a former DEP Secretary. If that doesn’t beat all. Fine them AND make them pay even more for the cleanup. Welcome to doing business in Pennsylvania…
    Read More “ME2 Pipeline’s $12.6M Shakedown Money Won’t Pay for Cleanup”

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    Big Green Targets PA Marcellus via DEP Water Quality Review

    The efforts by radical environmental groups like THE Delaware Riverkeeper and PennFuture to try and shut down the Marcellus industry in Pennsylvania never stop. Like ocean waves that continue to crash into the shoreline, Riverkeeper and PennFuture constantly, regularly, launch new initiatives aimed at hassling, slowing, stopping and reversing the Marcellus industry. Sometimes (often) their efforts are focused on filing frivolous lawsuits. Sometimes it’s a publicity stunt/protest. And sometimes they take aim at regulatory bodies, like the PA Dept. of Environmental Protection (DEP). It is that last one that is the focus of a new campaign to stifle the Marcellus industry. Every three years the DEP conducts a review of water quality standards. Riverkeeper and PennFuture have put the call out to their radical faithful to inundate the DEP with public comments (due by Feb. 16) to create new regulations that will “protect” PA streams “from impacts like brine gas drilling wastewater” and “road salt applications in the winter”–perfectly safe salt that comes from processed wastewater. In other words, this is yet another attempt to shut down the drilling industry by neutering its ability to properly dispose of brine wastewater…
    Read More “Big Green Targets PA Marcellus via DEP Water Quality Review”

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    PA Auditor General Goes After SRBC, DRBC with “First-Ever” Audits

    2/14/18 Update: Shortly after this post went live, MDN received a tip from a reliable source that sheds more light on the audit and why DePasquale is moving forward with it. (Hint: He’s being forced to.) See our note below.

    This should be interesting to watch. Democrat partisan hack PA Auditor General Eugene DePasquale is about to conduct an in-depth (very invasive and painful) “audit” of the finances for both the Susquehanna River Basin Commission (SRBC) AND the out-of-control Delaware River Basin Commission (DRBC). That is, we have a Democrat turning on some of his own. DePasquale previously audited the PA Dept. of Environmental Protection during the administration of Republican Gov. Tom Corbett. DePasquale’s “audit” highlighted problems that had already been fixed, for years (see DEP to DePasquale: Problems Fixed Years Ago, Where Have You Been?). It was a political stunt, meant to embarrass Tom Corbett and shame the Marcellus industry. When that didn’t work, DePasquale ran a sham audit two years later looking at the impact tax–the money raised by shale drilling–that looks and acts and walks and quacks like a severance tax in PA (see PA Anti-Drilling Auditor General Bashes Impact Fee Spending). His audit found the system needs better paperwork. Yeah, that’ll fix things. More paperwork. DePasquale’s targets have been Republicans and the things they like, as in drilling. So it surprised us to learn that DePasquale will now go after (at least in the case of the DRBC) some of his own. Perhaps DePasquale will “discover” all sorts of nasty problems with the SRBC, but the DRBC will be clean and pure as the wind-driven snow. That’s what we expect from a partisan hack like DePasquale…
    Read More “PA Auditor General Goes After SRBC, DRBC with “First-Ever” Audits”

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    Severance Tax Battle in PA Heats Up One More (Last?) Time

    As MDN reported last week, Pennsylvania Gov. Tom Wolf, an extremely partisan Democrat, is once again beating the drum for a Marcellus Shale-killing severance tax in the last of his annual budgets (see PA Gov. Wolf Broken Record: Proposes Budget with Severance Tax). At least, we hope it’s Wolf’s last budget and that Pennsylvanians won’t be foolish enough to re-elect him for another four years (fool me once…). Wolf’s plan, in a nutshell, is to tax drillers (and by extension, landowners) to the tune of $250 million a year, and give that money away to teachers and their unions in the Philadelphia region–the people who elected him to office. We spotted dueling newspaper editorials from last week–one from the (sometimes) conservative Pittsburgh Tribune-Review, the other from the (always) liberal Democrat-owned Scranton Times-Tribune. Below are those editorials illustrating clear-headed thinking, and muddled thinking (respectively), along with a January column co-written by the Marcellus Shale Coalition and the Pennsylvania Chamber of Business & Industry laying out the case against a severance tax in the Keystone State. Unfortunately this is an ongoing battle we must fight every single year. But fight it we must…
    Read More “Severance Tax Battle in PA Heats Up One More (Last?) Time”

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    Fractivists Gear Up to Fight Conversion of Philly Pipe for NatGas

    A far-left group of radicals calling themselves Ending Dirty Gas Exploitation Philadelphia (EDGE Philly) is borrowing a tactic first pioneered by THE Delaware Riverkeeper, to oppose a short pipeline project near Philadelphia. In November, MDN shared the exciting news that an old oil pipeline stretching from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook, had been purchased by a subsidiary of New Jersey Resources and will get converted to flow Marcellus natural gas to the greater Philadelphia region (see Oil Pipeline Near Philly to be Converted to Flow Fracked NatGas). The project/pipeline is called Adelphia Gateway. Adelphia ran an open season–a period of time when shippers can reserve capacity along the pipeline–and got requests for twice the amount of capacity the pipeline will hold (see Converted Pipeline Near Philly Gets 2X More Interest than Capacity). That was more than enough for NJ Resources to move forward with the project. In January NJ Resources filed an official application with the Federal Energy Regulatory Commission (FERC) to convert the existing pipeline to flow natural gas, and add various facilities (like meter stations) along the way (see Adelphia Gateway Pipeline Near Philly Files with FERC). The irrational fossil fuel haters from EDGE Philly want to stop the project. So they’re coaching as many blind followers as possible to file as “intervenors” in the project–hoping to flood FERC with intervenor applications, slowing down the entire approval process, bringing it to a halt…
    Read More “Fractivists Gear Up to Fight Conversion of Philly Pipe for NatGas”

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    Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction

    In what can only be considered a government shakedown, Sunoco Logistics Partners has 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.” The fine, along with a “stringent compliance review” going forward, gives the DEP enough confidence to allow Sunoco to resume construction on the ME2 project, which has been halted since January 3rd (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). Last Friday Sunoco appealed the DEP’s stop work order to a special court set up to hear appeals of DEP decisions (see Sunoco Appeals DEP’s ME2 Pipe Suspension to Enviro Hearing Board). DEP couldn’t risk having their order overturned–not when there’s a shakedown in progress! With respect to the “deal,” Sunoco said, in so many words, that while they (strongly) disagree with the DEP’s statements in making the deal, Sunoco is willing to pay the fine so they can get back to work and finish the project. A cost of doing business in PA, apparently. Beginning today, thousands of people who had been thrown out of work by the DEP order will resume their jobs. All it took was 12.6 big ones to make it happen…
    Read More “Sunoco LP Pays PA DEP $12.6M to Resume ME2 Pipeline Construction”

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    PA Superior Court Upholds Challenge to “Title Washing”

    Ever hear of “title washing?” MDN alerted readers about this funny sounding practice that has to do with mineral rights in Pennsylvania, with possible implications for landowners and drillers, back in 2016 (see PA Supreme Court Decides “Title Washing” OK in Mineral Rights Case). In 2016, the Pennsylvania Supreme Court issued a 5-0 ruling that upholds the practice of title washing in the Keystone State. What is it, and how does it affect landowners and drillers? In the case of Herder Spring Hunting Club v. Keller there had been a tax sale in 1935 for a property in Centre County, PA where the mineral rights had previously been separated. Prior to 1948 if mineral rights that had been separated were not properly recorded (it was incumbent on the owner of the subsurface rights to ensure the sale was recorded at the assessor’s office), and the surface land was later sold, both the mineral rights (subsurface) and the surface land became part of the sale. If the rights owner didn’t record the sale, they lost their ownership rights. That, in essence, is title washing. After 1948 a law prevented this from happening, so such cases only apply to land sold before 1948. The PA Supremes upheld title washing in the 2016 case. Another case, Woodhouse Hunting Club, Inc. v. Hoyt, made a run at challenging title washing–this time in Pennsylvania Superior Court. However, the Superiors have sided with the Supremes in shooting down the challenge…
    Read More “PA Superior Court Upholds Challenge to “Title Washing””

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    “Talk About It” Substitutes for Real Science in Marcellus Study

    This is one of those zany Friday kind of stories. Yet another so-called study on the Marcellus Shale industry recently caught our attention. We’ve often pointed out the “bought and paid for” research that abounds on shale drilling. This one goes to a whole new metaphysical plane. Instead of researching and drawing conclusions from research data, the recently published study “Engaging over data on fracking and water quality” (University of Pittsburgh and Penn State University) talks about talking about the issue of Marcellus Shale drilling. Yeah. How do you *feel* about drilling? Here, lie down on this sofa while we ask you some questions about your childhood and fracking practices. OK, so maybe a study about how people talk about the issues involved with Marcellus Shale drilling isn’t so far-fetched–if such a “study” were to appear in the Journal of Idiosyncratic Sociology. This “study” however, was published in the journal Science. As in hard science–not social science. So now it no longer matters what real science finds–whether or not fracking actually pollutes water and air. Whether or not living near a fracking site will stunt your growth. Whether or not fracking carves up forests or increases automobile accidents or any of a plethora of other issues. What REALLY matters is what you *think* about all that. That’s what now passes for science in Science…
    Read More ““Talk About It” Substitutes for Real Science in Marcellus Study”

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    NEPA Republican Lawmaker Intros Marcellus Health Registry Bill

    In 2011, then-Gov. Tom Corbett’s Marcellus Shale Advisory Commission filed a final report with 96 recommendations (see PA Marcellus Shale Advisory Commission Final Report with 96 Recommendations). One of those recommendations is to establish a population-based health registry. The aim would be to collect and evaluate clinical data from health care providers and monitor citizens living near drilling sites. Sounded good to us then, still sounds good now. One of the early attempts at this came from the private sector. Geisinger Health Systems proposed to use data already in the files to begin tracking potential issues related to shale drilling (see PA Marcellus Health Study by Geisinger Turns into Data Warehouse). But as we later learned, Geisinger was in it for the money (can’t blame them). They wanted $24 million and didn’t get it, so that effort flopped. A Republican State legislator from Scranton, PA, Rep. Karen Boback, is attempting to reignite interest in the health registry issue. On Monday, Rep. Boback introduced House Bill (HB) 2055 (full copy below) that would establish a health registry to collect health-related data from those living near shale drilling. The PA Dept. of Health would be the agency tasked with the data collection. Rep. Boback figures it will take $1 million per year to fund the initiative, far less than what Geisinger wanted…
    Read More “NEPA Republican Lawmaker Intros Marcellus Health Registry Bill”

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    PennEast Files Eminent Domain Against 44 Landowners, Wants Marshals

    As we told you last week, Monday (Feb. 5) was the final day for landowners who live along the path of the PennEast Pipeline to accept an offer from PennEast to lease their land for the pipeline (see PennEast Pipe Gives Holdout Landowners Feb 5 Deadline to Sign). The landowners have had nearly three years to deal in good faith negotiations with PennEast, and their time has now run out. On Tuesday PennEast regrettably was forced to file eminent domain lawsuits against 44 holdout landowners. PennEast also asked the court to approve the use of federal marshals to protect workers due to threats the company has received from landowners and radical antis who say they will hassle workers and block construction. A prudent request given the sometimes violent nature of the Big Green movement (e.g. Dakota Access Pipeline violence). Here’s the latest on PennEast, as they get ready to begin construction…
    Read More “PennEast Files Eminent Domain Against 44 Landowners, Wants Marshals”

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    PA Gov. Wolf Broken Record: Proposes Budget with Severance Tax

    Here we go again. Supposedly striking a more “cooperative tone,” Pennsylvania Gov. Wolf’s sympathetic media buddies are trying to spin, as best they can, Wolf’s state budget proposal delivered yesterday. Wolf is a hyper-partisan who, in this latest budget, continues to demand a $250 million/year Marcellus-killing severance tax–on top of the existing impact tax. It is the only new tax in the budget, a budget that increases the already wildly overspent state budget by an additional $1 billion! Spending in Harrisburg is completely out of control–a disaster. The last governor (frankly the only governor in a generation) who tried to correct Harrisburg’s voracious appetite to spend more, Tom Corbett, got voted out of office after one term. Wolf is hoping to score a second term by continuing his Santa Claus routine–by pulling money from the pockets of those who earn it (landowners and drillers) to give away to those who don’t (teacher’s unions in Philadelphia). We are not exaggerating–this is fact. In his proposed $32.9 million budget, Wolf claims a “modest” severance tax will generate $248.7 million this year, and ALL OF IT will go to “education”–meaning teachers and their unions in the Philadelphia region. It’s political payback for their ongoing support and for their efforts to get Wolf elected in the first place. Why is this FACT not discussed openly in the media? It is repugnant to use the gun barrel of the state to steal the wealth of one group and transfer it to another as political patronage. Yet that is Wolf’s mission. Republican legislators reacted negatively to Wolf’s wildly overspent budget (and severance tax), as did the Marcellus industry…
    Read More “PA Gov. Wolf Broken Record: Proposes Budget with Severance Tax”

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    PA Senate Passes Meaningless Resolution to “Study” Slow DEP Permits

    This is what passes for “action” in the swamp of Harrisburg. Over the past couple of years the Pennsylvania Dept. of Environmental Protection (DEP) has gotten slower and slower in issuing permits for shale drilling–for simple things, like erosion permits a driller needs to push dirt around to create a well pad. The DEP has a policy of issuing erosion and sedimentation permits 14 days from the date of application. As of last summer it was taking the DEP over 250 days to issue those permits (see More Pushback on PA Senate Plan to Fix Slow DEP Permit Reviews). The drilling industry has been loudly pushing for a change. The DEP says it has fewer people on staff and that’s the reason for the slowdown. The thing is, the number of requests for permits has gone down too–so that particular argument doesn’t hold a lot of water. PA House Republicans have introduced a number of bills to “fix” the DEP, not least of which is a bill introduced that allows certified third parties to assist the DEP in reviewing permit applications (see Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits). The PA Senate wants in on the “fix DEP” action too. A Senate Democrat, John Yudichak from Wilkes-Barre, proposed a resolution to study the problem (see PA Senate Ctte Sends “Study Slow DEP” Resolution for Full Vote). A resolution to study something is swamp code for “don’t do a darned thing about it.” Yudichak’s meaningless resolution passed the full Senate yesterday. PA Senators can now all pat themselves on the back, pretending they’ve actually done something to address this critical problem when in fact, they’ve done nothing at all…
    Read More “PA Senate Passes Meaningless Resolution to “Study” Slow DEP Permits”