Statewide PA

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    PA DEP Adopting New Rules for Gas Wells Located Near Coal Mines

    In December, the Pennsylvania Dept. of Environmental Protection (DEP) released “interim final technical guidance” (i.e., new regulations) for drilling Marcellus Shale natural gas wells in areas where there is longwall coal mining. Sometimes drillers want to lease and drill under coal mines. Since coal mines sink large holes in the ground, there are existing guidelines in place for how closely an oil/gas well can be drilled on or under a coal mine–guidelines put in place in 1957. As a result of legislation passed in 2011 called Act 2, a review was conducted to see if the standards for oil/gas drilling near coal mines might be modified, allowing such drilling to happen in conditions not currently allowed. A study was performed and in January 2017 the DEP rejected that study–preferring to keep a default ban on any drilling under coal mines for the time being (see PA DEP Rejects Revisions to Regs re Drilling Near Coal Mines). Since that time the DEP has continued to work on the issue and has now produced guidelines it thinks can safely allow shale drilling under coal mines, at least in certain circumstances. The DEP issued their interim final guidelines back in December and will accept public comment until Jan. 31 of this year. After that, the DEP will make final tweaks and slap a “done” sticker on it. We have a copy of the interim guidelines below, which may affect some of our shale drilling subscribers…
    Read More “PA DEP Adopting New Rules for Gas Wells Located Near Coal Mines”

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    Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits

    Last year the pressure was intense to pass a severance tax in Pennsylvania to help fill a budget gap. The severance tax issue in PA is a political football–a promise made by current Gov. Tom Wolf to pay off teacher’s unions in Philadelphia for voting him into office. During the budget machinations, traitorous Republicans in the PA Senate caved to pressure and in July passed a budget bill that hikes taxes on lots of things, including a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). As part of the Senate’s misguided and mangled budget bill, Republicans slipped in fixes to the state Dept. of Environmental Protection’s chronic delays in issuing permits related to shale drilling (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). As we said at the time, the writing was already on the wall–Democrats would lobby to remove the DEP fix and leave the severance tax. The DEP fix (surprisingly) continued in further revisions to the budget plan–until October, when the DEP fixes came out (see Latest PA Budget Bill Drops Fix for Slow DEP Permit Reviews). Although the fix came out, the severance tax came out too and was never passed (thank God for small miracles). But problems remain for Marcellus drillers. Delays are long in the Keystone State when it comes to permits for shale wells. The problems need to get fixed. So PA House Rep. Greg Rothman (Republican from Cumberland County) has just introduced a standalone bill to fix the problem. Predictably, enviro nuts and Democrats are lining up to oppose the fix…
    Read More “Bill Introduced to Fix PA DEP’s Extreme Delays Issuing Permits”

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    Finalists Announced for 2018 Northeast & 2018 Texas Oil & Gas Awards

    Once again Marcellus Drilling News is happy to partner with and support the Oil & Gas Awards, for 2018. The Awards boys have just released two lists of finalists–one for the Northeast Awards, being held March 1 in Pittsburgh; and one for the Texas Awards, being held March 7 in Houston. This year six of the entrants for the awards contracted with MDN editor Jim Willis to help them prepare their entries (both Northeast and Texas). It was a blast for Jim to dig in and understand more about the companies submitting an application for the awards–and to help them craft what we hope are winning entries! Jim worked with some true professionals from the companies entering the awards–it was a pleasure. Below is a list of the finalists in each region. Good luck!…
    Read More “Finalists Announced for 2018 Northeast & 2018 Texas Oil & Gas Awards”

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    Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?

    The news that the Pennsylvania Dept. of Environmental Protection (DEP) has suspended all construction work on the Mariner East 2 Pipeline project until further notice continues to reverberate (see PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). MDN has taken some heat for our implication that the main reason for the shutdown is pressure from radical Big Green groups. While we maintain our view is not incorrect, we also don’t want to leave the impression that there aren’t problems that need to be addressed with ME2 construction. There are. And the DEP is right to address them. What we DO take issue with is a complete shutdown of ALL construction. If the underground horizontal directional drilling (HDD) work is the primary issue, shut that down–but not all construction, including trench work. At any rate, we spotted a story about a landowner in Cumberland County who says his private water well was fouled when ME2 construction began–and it’s still not right. Below is his story as an example of what the DEP *should* be paying attention to…
    Read More “Was PA DEP Justified in Shutting Down All ME2 Pipe Construction?”

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    Propane Prices in the Northeast & ME2 Pipeline

    A lot of the talk and chatter this week has been about the spike in the price of natural gas (see today’s lead story, NatGas Trading in NYC Hits $175/Mcf – Highest Ever Recorded!). The other hot topic of the week is the decision by the Pennsylvania Dept. of Environmental Protection (DEP) to temporarily suspend all construction work on the Mariner East 2 (ME2) Pipeline. What antis in the Philadelphia area don’t realize is that ME2 is vital to their own region and their own pocketbooks. Yesterday we brought you one take on why Philly residents are missing the boat in opposing ME2 (see It’s Time We Stop Missing the Point About the Mariner East Pipes). In that guest post, MDN friend Garland Thompson makes the salient point that jobs and the Philly economy are tied to petrochemicals and the NGLs that will flow through the Mariner East pipelines. Today we bring you another article about why ME2 is so vital to the Philly area: the cost of propane. One of the primary NGLs that will flow through ME2 is propane, used in a variety of applications, but particularly used in places where there are not natural gas pipelines to deliver gas to homes (like the various suburbs around Philly, the ones opposing ME2). Propane prices are going up because (a) much of the propane produced by Marcellus/Utica drillers goes by railcars to Kansas, where it catches a ride on a pipeline to the Gulf Coast, and (b) the propane that does come to the Philly area also comes via rail cars, at a much higher price than if it were shipped via pipeline. Add to that other countries want our propane and are bidding the price up–and you have a prescription for spiking propane prices around Philly. The article below delves into the business of propane, explaining terms you may have heard but don’t know what they mean–like “contango” and “backwardation.” Buckle up–here’s a deep dive into the economics of propane, and why Philadelphia desperately needs the ME2 pipeline–without delay…
    Read More “Propane Prices in the Northeast & ME2 Pipeline”

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    PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline

    We suppose it was bound to happen sooner or later. The Pennsylvania Dept. of Environmental Protection (DEP) has caved to intense pressure from a cabal of Big Green groups and has told Sunoco Logistics Partners to suspend all work on the $2.5 billion Mariner East 2 (ME2) NGL pipline–from one side of the state to the other. Just yesterday MDN told you about the mounting pressure on the DEP to halt ME2 work, particularly work on underground horizontal directional drilling (see Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat). The shrill voices of Democrat Gov. Tom Wolf’s left flank were so shrill he couldn’t ignore them any longer, hence this action. The DEP in its order said construction will be halted, “until Sunoco can demonstrate that the permit conditions can and will be followed.” So there’s no particular time frame for when Sunoco can resume work–it will be up to the arbitrary gut feeling of the DEP. However, DEP does offer some criteria for when construction may be able to resume. Work can resume IF Sunoco satisfies the terms outlined in DEP’s order, including, but not limited to: (1) Address all impacts to private water wells in Silver Spring Township, Cumberland County; (2) Identify all in-progress or upcoming construction activities and detail the specific Chapter 102 and Chapter 105 permit under which the activity is authorized; (3) Submit a detailed Operations Plan outlining additional measures and controls to minimize inadvertent returns. In essence, the DEP is saying Sunoco has willfully violated the permits (and previous settlement) in constructing ME2, and they (DEP) have had enough. The DEP’s action immediately throws thousands of pipeline workers out of jobs across the state–thank you Tom Wolf and DEP. Big Green groups, including the odious Clean Air Council of Philadelphia, pounced on the DEP announcement, saying the agency should not just suspend construction, but CANCEL it. That has been their aim all along. These pressure groups want to stop the ME2 project cold. End it. Kill it. Finish it off. The DEP isn’t ready to grant that particular wish–yet. However, the suspension is certainly not good news for the project nor for thousand of families who will now have to make do with unemployment checks…
    Read More “PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline”

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    It’s Time We Stop Missing the Point About the Mariner East Pipes

    Yesterday the Pennsylvania Dept. of Environmental Protection suspended all work on the Mariner East 2 NGL Pipeline project (see today’s lead story, PA DEP Caves to Big Green Pressure, Stops All Work on ME2 Pipeline). The project has been vigorously opposed by antis in the greater Philadelphia area from the beginning. Their opposition stems from a deeper philosophical preference to end the use of fossil fuels. Last September, MDN editor Jim Willis had the pleasure of meeting and talking with Garland Thompson at the Shale Insight event in Pittsburgh. Garland, who lives in Philly, has written for the Career Communications Group of publications, including US Black Engineer & Information Technology, Hispanic Engineer & IT, and their siblings Woman of Color and Science Spectrum, for many years. He’s covered the shale revolution for those publications since 2008–before MDN began writing about it! Jim had an interesting conversation with Garland, about the need to educate folks, particularly the folks in the greater Philly area, about the benefits of pipelines. Springboarding on yesterday’s news, Garland has written a great opinion piece pointing out that opposition to the Mariner East pipelines (plural) is misguided and shortsighted. Garland builds a case for why everyone in the Philly region should want to see these important projects get built…
    Read More “It’s Time We Stop Missing the Point About the Mariner East Pipes”

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    Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat

    Sunoco Logistics Partners continues to feel the heat over their construction of the Mariner East 2 (ME2) natural gas liquids (NGL) pipeline project. Most of the heat comes from underground horizontal directional drilling (HDD)–drilling holes to install pipelines under structures like roads and streams, in places where you can’t just dig a trench. The problem is that sometimes the mud used to cool the drill bit for HDD work “leaks” or disappears into cracks and crevices, and sometimes the drilling mud ends up coming back to the surface. It’s called an “inadvertent return.” Bear in mind that drilling mud is otherwise known as bentonite–a nontoxic clay mixture. Bentonite is the same chemical compound used to make kitty litter, toothpaste and all sorts of cosmetics. It’s totally safe for the environment–unless you spill a lot of it and smother little critters like salamanders and fishies. Several Big Green groups sued to stop ME2’s HDD work last year. In August, Sunoco “settled” that lawsuit. The terms of the “settlement” called for Sunoco to reevaluate and resubmit plans for HDD drilling at 47 locations for review by the Dept. of Environmental Protection (DEP). Since that time more spills have occurred, and keep occurring (see Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations). Sometimes a spill is a few gallons–literally a nothing, but it must be reported anyway. Sometimes a few hundred gallons gets spilled–again, not a threat to the environment. But sometimes the spills are in the thousands of gallons–and that does begin to be a problem. Because of the ongoing spills, a Big Green group (part of the original lawsuit) is now demanding the PA DEP shut down all further HDD work. They admit their aim is to “shut down the entire project”–not just HDD drilling. While the DEP isn’t ready for such a drastic measure, the DEP is turning up the heat on Sunoco. Here’s an update…
    Read More “Big Green Says ME2 Pipe Violating Settlement; DEP Turns Up Heat”

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    Chesapeake Agrees to $30M Royalty Settlement for PA Landowners

    Chesapeake Energy is holding out an olive branch to Pennsylvania landowners–the offer of settling a years-old class action lawsuit for $30 million–as reparations for shafting PA landowners out of royalties. But–and it’s a big but–Chesapeake is also snatching the olive branch away unless/until the PA Attorney General’s office resolves its separate lawsuit against Chesapeake for the same thing. No deal with the AG? No final settlement. Chesapeake’s lawyer calls it “global peace”–which we find amusing. The lawyer said “we need global peace,” meaning both lawsuits must be settled. His comment reminds us of the recent song blaring on the radio over the holidays called, “My Grown-Up Christmas List.” Yeah, don’t we all want “global peace.” Chesapeake’s proffered deal will give the average PA leaseholder (some 14,000 of them) a one-time $2,140 payment–adjusted up or down for the size of their acreage. Frankly, it’s chump change. The big concession by Chesapeake in the proposed deal is that it gives landowners the right to clarify the terms of their leases: “Every Chesapeake lessor will get to pick how their royalties are paid going forward.” Landowners can choose to continue letting Chesapeake market the gas outside of the region (theoretically for a higher price) but requiring the landowner to share in post-production expenses with Chessy as has been the case, OR landowners can rework the lease so there are no post-production expenses deducted. In the second case royalties will be based on the local price of gas in that landowner’s area (typically in the basement). It’s a tough decision. So, landowners got shafted in the past, but the past is the past. Going forward, let’s not get shafted any more. That’s what this proposed deal seems to boil down to. Oh, and throw in a few grand as the cherry on top. The billion dollar question is whether or not the AG’s office will go for it. The AG’s office is signaling it may settle, IF Chesapeake picks a number higher than $30 million as a settlement number…
    Read More “Chesapeake Agrees to $30M Royalty Settlement for PA Landowners”

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    PA Fed Judge Rejects Class Action in Chesapeake Royalty Case

    Yesterday a Pennsylvania federal judge denied a group of 600+ Marcellus Shale landowners’ request to form a class action in arbitrating a royalty case against Chesapeake Energy. Although the judge’s decision is a disappointment for landowners, his decision should come as a surprise. In April, the same judge, U.S. District Judge Matthew Brann for the Middle District of PA, telegraphed that the landowners, under the law (and under the leases they signed) did not have a right to form a class action (see Chesapeake Scores Court Victory to Prevent PA Royalty Class Action). However, the landowners continued to pursue it by appealing the judge’s initial decision. Brann, in rendering yesterday’s decision, begins his written ruling with a quote from the Lord of the Rings: “Short cuts make long delays.” His point: The landowners tried to short circuit the legal process and they can’t. Landowners will need to individually litigate/arbitrate their cases with Chesapeake. The judge lectured landowners that they could have already been well on their way to a resolution of their individual cases had they not stubbornly continued to pursue class action arbitration. Below we have a brief background on the case to better understand the decision, followed by a copy of Judge Brann’s decision from yesterday… Read More “PA Fed Judge Rejects Class Action in Chesapeake Royalty Case”

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    Antis Meet with PA Gov. Wolf, Ask Him to Illegally Block ME2 Pipe

    A group of six radical Democrats who oppose the Mariner East 2 pipeline through southeast Pennsylvania met yesterday with Democrat Gov. Tom Wolf to gripe and moan–and to ask Wolf to illegally shut down construction of the pipeline (a pipeline which is now 91% done). Wolf politely listened–and then did nothing. Which is good. The radicals hold out hope that Wolf will change his mind and use his executive authority under Title 35 (dealing with health and safety) as an excuse to shut down all ME2 construction. Good luck with that. A statement issued later in the day by a Wolf spokesman seems to indicate the governor is punting any decisions about shutting down construction over to the Public Utility Commission. Yesterday the PUC vote to allow already-shut-down ME2 construction in one SE PA town to resume (see today’s story, PA PUC Votes to Let ME2 Pipeline Restart Construction in West Goshen). All of which says to us that Wolf won’t do a thing to stop completion of ME2, which angers the radicals all the more…
    Read More “Antis Meet with PA Gov. Wolf, Ask Him to Illegally Block ME2 Pipe”

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    Obscure Committee with Power Over PA Gathering Pipes Staffing Up

    An obscure committee of individuals will begin to wield big power over Pennsylvania’s natural gas (and oil) gathering pipelines beginning next year. In just about every state in the country, before you start digging a hole in the ground for some reason (water well, septic system, laying an underground electric line, etc.)–the first thing you do is call 811 or some similar phone number. The “one call” or “first call” reaches a state-authorized (not necessarily state-run) office where they have, on file, maps detailing any kind of underground cables, pipelines and other infrastructure. If such underground structures exist, a representative of the owner for the underground line will, if necessary, stop by and mark the areas so when you do begin digging, you don’t hit it. Makes sense. A bill introduced last year (in 2016) in the Pennsylvania legislature “enhances” the existing 811 law in PA. One of the “enhancements” is that it removes an exclusion for low-pressure natural gas gathering pipelines from being required to be part of the 811 system, mainly lines run to low-producing conventional gas wells. The bill was opposed by the Pennsylvania Independent Oil & Gas Association (see PIOGA Opposes Bill to Regulate Unregulated PA Gathering Pipelines). The bill was reintroduced in March of this year (see PA State Senator Introduces Bill to Regulate Gathering Pipelines). Once again PIOGA pushed back, and in June a compromise was reached to exclude pipelines running to “stripper wells”–i.e. low-producing conventional wells. With that compromise in place, both the PA Senate and House have voted to adopt the plan and it was signed into law (see Shale + Large Conventional Gathering Pipes Added to PA One Call). The PA Public Utility Commission is the state agency charged with oversight of the enhanced 811 system. The PUC announced yesterday it is looking for nominations of individuals to sit on the utility and pipeline Damage Prevention Committee (DPC). We spotted this note about the power of this small group of people: “The DPC will meet regularly to review alleged violations of the Act and make determinations as to the appropriate response including, but not limited to, the issuance of warning letters or administrative penalties.” Sounds to us like this obscure committee now holds great power over PA’s gathering pipeline infrastructure…
    Read More “Obscure Committee with Power Over PA Gathering Pipes Staffing Up”

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    SE PA Politicians Introduce Bills to Prevent Future Pipeline Development

    Weak-kneed, swamp-dwelling politicians from the Philadelphia area continue to ratchet up the noise on stopping all work for the Mariner East 2 Pipeline. State Sen. Andy Dinniman (Democrat from the 19th District) and State Sen. John Rafferty (RINO from the 44th District) say the impacts of ME2’s construction are “unacceptable.” A few of their loudmouthed constituents (mostly likely members of Big Green groups) are complaining to these weak-kneed politicians and in turn the politicians have introduced four new bills in the PA Senate that will not do a @#$% thing about ME2, but will potentially stop future pipeline projects in the state. The aim of the bills is to tie up pipeline projects with so much red tape in various reviews, and by paying new fees for so-called “safety” measures, as to make the pipelines unbuildable. Here’s the latest effort from the Philly area to derail the Marcellus miracle in PA…
    Read More “SE PA Politicians Introduce Bills to Prevent Future Pipeline Development”

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    Converted Pipeline Near Philly Gets 2X More Interest than Capacity

    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 more 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 the Adelphia Gateway. On Nov. 2nd, the project began an “open season”–a period of time when shippers can reserve capacity along the pipeline. Such contracts typically run for 10-20 years and guarantee the pipeline (which will invest millions) can recoup its investment and make a profit. The open season was scheduled to expire on Nov. 20th, but Adelphia extended the open season to Dec. 8th, owing to the Thanksgiving holiday and folks not being at their desks to make such decisions (see Converted Oil Pipeline Near Philly Extends Open Season for NatGas). Looks like extending the open season was the right call. New Jersey Resources says the open season was a huge success, with requests for double the amount of offered capacity along the pipeline…
    Read More “Converted Pipeline Near Philly Gets 2X More Interest than Capacity”

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    PA DEP Goes Paperless, Jumps # of Well Inspections in 2017

    It’s GO-TIME at the Pennsylvania Dept. of Environmental Protection (DEP). GO-TIME stands for Governor’s Office of Transformation, Innovation, Management and Efficiency. In English, please! “Eliminate paper by using electronic devices.” Yesterday DEP Deputy Secretary for Oil and Gas Management Scott Perry said that by dumping paper and using apps on iPads, oil and gas inspectors save goodles of time by not filling out paperwork “back at the office” and instead stay in the field longer. All of which means that even with using less inspectors in 2017, the DEP actually increased the number of well site inspections by an extra 2,000 over 2016, saving the agency half a million dollars. It’s about time the DEP came into the 21st century. Now if we could only get them to speed up well permit approvals…
    Read More “PA DEP Goes Paperless, Jumps # of Well Inspections in 2017”

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    PA Dems Turn on One of Their Own for Missing Severance Tax Vote

    Yesterday MDN brought you the news that on Tuesday the latest effort to keep debating (and potentially pass) a horrible severance tax bill had failed by a single vote in the PA House (see 1 Vote Saves the Day – PA Severance Tax Vote Delayed to Next Year). Momentum is everything in these kinds of fights, and the severance tax bill has lost its momentum. It now will not be considered until at least Jan. 22 of next year. Democrats are fuming at the loss–a single vote! So they began scouring the list of those who voted for extending debate (and potentially voting to pass the bill), and found one of their own missed the vote. State Rep. Kevin Haggerty, Democrat from Scranton, didn’t show up for the vote–and he’s a reliable Big Left/Democrat voter. He assuredly would have voted to approve continuing the debate. Thing is, Haggerty has now missed 23 straight voting sessions and 300 roll call votes. So the long knives have come out for Haggerty. He blew it. And the Dems are fuming mad. Why has Haggerty missed so many days and so many votes? Because he’s going through a divorce and he needs to stay home with his two young children. If Haggerty were a woman–or a transgender–and made the same excuse for missing votes, Democrats would have been silent. Not a peep. But because Haggerty is a white male (the worst of the worst of the WORST), his fellow lefty Democrats are willing to boil him in political oil…
    Read More “PA Dems Turn on One of Their Own for Missing Severance Tax Vote”