Statewide PA

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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…
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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”

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    DEP Will Use Fed Standards as Back Door to Control Methane Leaks

    We’re now learning more about how the Pennsylvania Dept. of Environmental Protection (DEP) plans to implement Gov. Tom Wolf’s onerous regulations that supposedly will cut down on fugitive methane from escaping from drill pads and pipelines. In December 2016, the DEP unveiled new methane regulations (see PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites). According to the DEP, the proposed General Permit 5A (GP-5A) and the revised General Permit 5 (GP-5), will “establish updated Best Available Technology (BAT) requirements for the industry regarding air emission limits, source testing, leak detection and repair, recordkeeping, and reporting requirements for the applicable air pollution sources.” After some final tweaks, the DEP released draft versions of the new permits (i.e. regulations) in February (see PA DEP Seeks Public Comment on Regs for Methane, Compressor Stns). The Marcellus Shale Coalition, among others, strongly pushed back on these unnecessary and costly regulations (see MSC Tells PA DEP What it Thinks of Onerous New Methane Regs). Following the pushback, there was a lull in activity. The lull ended two weeks ago when the DEP issued reworked regs, yet again (see PA DEP Signals Onerous New GP-5 & 5A Methane Regs Coming 1Q18). At an advisory meeting yesterday the DEP outlined a subtle change in strategy. They now will adopt and use federal guidelines for cutting smog-causing pollutants (VOCs, or volatile organic compounds) that will, as a side benefit, supposedly reduce fugitive methane from existing well pads and pipelines. That is, the DEP intends to use the back door to try and control methane leaks coming from the shale industry. Here’s the thing: a recent Penn State study found very little methane actually leaks from shale operations–less than one-half of one percent (see Penn State Study Finds Very Little Methane Leaks from Shale Op). In typical government fashion, the DEP is trying to fix a problem that doesn’t exist!…
    Read More “DEP Will Use Fed Standards as Back Door to Control Methane Leaks”

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    1 Vote Saves the Day – PA Severance Tax Vote Delayed to Next Year

    A single vote saved the day on Tuesday, preventing the horrible Pennsylvania House Bill (HB) 1401 from potentially coming up for a full vote. We’ve covered this insane bill repeatedly because it is an existential threat to the Marcellus Shale industry in the Keystone State (see our stories here). State Rep. (and RINO) Todd Stephens, from Montgomery County, made a motion on the floor Tuesday evening to keep debating HB 1401 as a “Special Order of Business” after all the business was done for the day. Tuesday was the last day of the current session until late January next year. Stephens’ motion received 100 votes. It needed 101 to pass. What does it mean? At the earliest the bill won’t be considered again until Jan. 22. Practically speaking, since the bill has not been able to muster enough support to get a vote by the full House, it means the bill is now on life support–near death. Which is a VERY good thing for PA…
    Read More “1 Vote Saves the Day – PA Severance Tax Vote Delayed to Next Year”

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    FERC Rejects Antis’ Request to “Rehear” Atlantic Sunrise Decision

    In March of this year, a variety of anti-fossil fuel Big Green groups filed a rehearing request with the Federal Energy Regulatory Commission (FERC), asking the agency to reconsider its decision to approve the Atlantic Sunrise Pipeline project (see Antis Attempt to Stop Atlantic Sunrise Pipe by Attacking FERC Order). Atlantic Sunrise is a $3 billion, 198-mile natural gas 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. Before Big Green groups can sue FERC in federal court to try and stop a project, they must first file a request for rehearing. If the antis can get FERC to agree to a re-hearing, it effectively slows, even stops, an active pipeline project. So in an effort to prevent important projects from being slowed or stopped, FERC developed something called a “tolling order” which grants FERC more time to consider whether or not a full rehearing is justified. During the time of the tolling order, work on a pipeline continues. Sometimes the work even gets completed! Which of course drives antis bonkers. By using a tolling order, FERC can drag out the process of deciding to deny a rehearing, avoiding the inevitable frivolous lawsuit that follows. That is, work on important projects actually gets done. Even though a tolling order was in place for the Atlantic Sunrise decision, antis still sued in federal court (several times, for a myriad of reasons), in an attempt to stop Atlantic Sunrise. It hasn’t worked. Construction is going strong. Last week FERC finally responded to the original request for a rehearing lodged back in March. FERC denied the request. When you read through FERC’s response, you’ll find many of the people and groups who requested a rehearing didn’t follow the rules and were simply dismissed as not having standing in the case. For those who do/did have standing, FERC methodically, meticulously, patiently explained why they are full of it…
    Read More “FERC Rejects Antis’ Request to “Rehear” Atlantic Sunrise Decision”

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    PA Landowners: Don’t Cash that Surprise Royalty Check Just Yet

    Pennsylvania landowners may think Christmas came early this year. Perhaps you’re a landowner and just received a surprise royalty check in the mail for a long-dormant well on your property. That well hasn’t produced in what seems like forever. Last time you got a royalty check was what…maybe 10 years ago? And look at this! Santa just visited! After all that time the driller decided to pump some more from that old well. But before you run to the bank and cash the check, thinking you can pay for more Christmas presents, better think twice. Or three times. You may about to be taken for ride. In July the Pennsylvania Senate passed an awful budget bill that includes a variety of new taxes, including a new severance tax on the Marcellus industry. The Senate also slipped in Section 1610 into the budget bill, which changes established lease law with respect to oil and gas wells that no longer produce anything (see PA Senate Slips Anti-Landowner Measure into State Budget Bill). Under then-existing law, when an oil or gas well stops producing–and the landowner quits getting royalty checks–the lease is considered terminated. Done. Finished. Under new Section 1610, drillers can resurrect those dead leases under a couple of conditions. If the landowner doesn’t officially declare “your lease is now dead since you’re not producing anything” a driller can quick-like-a-bunny restart production at the well and send the landowner a piddly royalty check, re-starting (or continuing) the existing lease with its existing terms. Or if the driller sends a notice to the landowner stating its intention to drill a new well on the property, and if the landowner doesn’t object within a 3-month time limit, the driller is free to begin drilling a NEW well, under the OLD lease terms. Section 1610 really stinks. Landowners are shafted out the opportunity to sign new leases with new bonuses and better royalty rates. Fortunately the severance tax didn’t make the final cut in the budget bill. Unfortunately Section 1610 did make it–and is now PA law. If you get a royalty check “out of the blue” for a long-dormant well, head for a lawyer, quick, BEFORE you cash that check…
    Read More “PA Landowners: Don’t Cash that Surprise Royalty Check Just Yet”

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    NYU Buying Frivolous Enviro Lawsuits by Hiring Lawyers for State AGs

    Somebody needs to sue the New York University (NYU) School of Law and 10 state Attorneys General to stop a grievous practice–a bastardization of our justice system. We are floored to learn that NYU is paying to hire attorneys to work inside the offices of the Attorneys General in 10 different states–Pennsylvania being the latest. The aim of hiring these new assistants to work alongside AGs is to launch lawsuits to “protect” the environment–i.e. sue fossil fuel companies. It is a gross perversion of our legal system meant to challenge policies the very liberal NYU doesn’t like. Our legal system is now, apparently, for sale–at least it is in PA and nine other blue Democrat-controlled states. THIS MUST STOP. NOW. Since when does private money get to buy state workers? Since when does private money with VERY long strings attached get to determine how and what state workers will work on? This is wrong in so many ways. And probably illegal, which the NYU School of Law should know. If it’s not illegal (big if), at a minimum it’s grossly unethical. Paging U.S. Attorney General Jeff Sessions: You need to stop this–now!…
    Read More “NYU Buying Frivolous Enviro Lawsuits by Hiring Lawyers for State AGs”

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    New Study Shows NO Link Between Marcellus & PA Mortality Rates

    An important research report has just been released that shows no connection between Marcellus Shale drilling and death (i.e. mortality) rates in Pennsylvania. Since the dawn of shale fracking, antis have made wild claims about fracking leading to low birth weights, asthma, and early death for those who live near active shale drilling operations. This study (full copy below) refutes that junk science–by using real data and real facts. Energy in Depth (an industry group) sponsored the research, but they hired an independent researcher to do the work. Hey, if we don’t pay for real research, it won’t get done! The independent researcher analyzed Pennsylvania Department of Health data for the state as a whole and the counties of Bradford, Greene, Lycoming, Susquehanna, Tioga, and Washington from 2000 to 2014. The data shows mortality rates in those six PA counties (which happen to be the counties with the most Marcellus Shale development) have declined or remained stable since shale production began in the region. In fact, the top Marcellus counties experienced declines in mortality rates in most of the indices. This is yet more proof that natural gas is not only good for the environment, it’s good for humans too…
    Read More “New Study Shows NO Link Between Marcellus & PA Mortality Rates”