Statewide PA

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    PA Awards 5 “Alternative Fuel” Projects $1.1M – All Fossil Fuels

    Yesterday Pennsylvania Gov. Tom Wolf (liberal Democrat) issued a press release to take credit for/crow about handing out another $1 million of taxpayer money. This time the money is part of the state’s Alternative Fuel Incentive Grants (AFIG) program–a program aimed at replacing gasoline and diesel fuel. At least replacing a little bit of it–a token gesture. The state issued grants totaling more than $1.1 million in their effort to replace fossil fuels as the fuel that powers vehicles. And what “alternative” will replace those nasty fossil fuels? What clean-burning, good-for-the-environment option did PA deign to fund for over $1 million? Was the money used to purchase new electric charging stations for Chevy Volts, Nissan Leafs, and Teslas? Nope. The superior option to replace those nasty fossil fuels is…other fossil fuels! The grants will buy buses that run on propane, and build compressed natural gas (CNG) refueling stations for vehicles that run on CNG. No electric outlets in sight. By using propane and CNG, Wolf says PA will replace “hundreds of thousands of gallons of fuel” (meaning gasoline and diesel), making PA’s air cleaner. We think it’s kind of funny that Wolf’s enviro left hates natural gas, yet Wolf calls it clean and green and hands out money to make it more widely available…
    Read More “PA Awards 5 “Alternative Fuel” Projects $1.1M – All Fossil Fuels”

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    Final Push to Tax PA Drillers & Give Money to Philly Teachers

    The tax-and-spend liberals in Pennsylvania and those who oppose fossil fuels (almost always one-and-the-same) are still pushing a dreadful, devastating severance tax bill proffered by RINOsaur (i.e. ancient RINO) State Rep. Gene DiGirolamo known as House Bill (HB) 1401. The bill, if passed into law, would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). Last week, just ahead of the Thanksgiving holiday, the House debated the bill for two days–then left town “abruptly” without taking any further action (see Update on PA Severance Tax Bill – More Progress, House Leaves Town). What happens now? The House doesn’t return for voting work until next Monday, Dec. 4th. In the meantime, the bill’s lib supporters in mainstream media are trying to create the impression the bill will get adopted when the House returns from break…
    Read More “Final Push to Tax PA Drillers & Give Money to Philly Teachers”

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    Update on PA Severance Tax Bill – More Progress, House Leaves Town

    We have a brief respite, but are still in a dangerous position. The Pennsylvania House continued to debate and vote on amendments to House Bill (HB) 1401 yesterday–the Frankenstein bill introduced by RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) that would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers, thereby effectively killing any new Marcellus drilling in the state (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). Debate on the bill began Monday, making quick progress (see Disastrous PA Severance Tax Bill Debated in House, Makes Progress). More progress was made yesterday. Some amendments to the bill passed, some failed–and then the House “abruptly adjourned” late last night without voting on the full bill itself. They got outta Dodge. The House returns to Harrisburg for more voting on Dec. 4th, so we have nearly two weeks of a reprieve before the battle begins again. It is vital this bill NOT PASS–for the future of Marcellus drilling in PA. Below is a list of the amendments that have, so far, passed and not passed, and how they tweak and change the overall Marcellus-killing HB 1401 bill…
    Read More “Update on PA Severance Tax Bill – More Progress, House Leaves Town”

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    Disastrous PA Severance Tax Bill Debated in House, Makes Progress

    Warning: Pennsylvania House Republicans are about to kill Marcellus drilling in PA by adopting a severance tax on top of the existing impact tax–creating the highest taxation of the oil and gas industry in the United States. Is PA ready to trade away an entire industry propping up its sorry finances–just to give money to Philly teacher’s unions? This is a TRAGEDY in the making. RINOsaur Gene DiGirolamo (“Republican” from the Philadelphia area) introduced a Frankenstein bill earlier this year called House Bill (HB) 1401 (see PA Frankenstein House Bill Merges Severance Tax & Minimum Royalty). The bill would tack a 3.2% severance tax on top of the existing ~5% impact tax (called a “fee”) already levied on Marcellus drillers. As soon as the bill made its way out of committee to the full House for consideration, over one hundred amendments were attached to it. Most of those amendments have been ruled “out of order” and removed from the bill, reviving the bill which is now under active consideration. A number of important amendments still remain and some of those were voted on yesterday. What you need to know front and center is that this bill is about a massive transference of wealth from those who produce wealth by working hard (drilling companies and landowners) to those who don’t (teacher’s unions). One of the amendments to HB 1401 passed yesterday reserves the first $150 million of the new severance tax solely for Big Education. The entire amount of revenue raised from a new severance tax, according to RINOsaur DiGirolamo, is expected to be $150 million. That is, ALL of the severance tax will go to Big Education, as payback. And you thought MDN was just spouting off, using hyperbole, ignorant or just plain mistaken all these years we’ve been screaming at the top of our lungs that the severance tax is nothing more than payback to Philly teachers for voting Tom Wolf into office. We (don’t) hate to say it: we were right. And now traitorous Republicans are making it possible for this to happen–for Wolf to get his way and corruptly funnel money back to the unions that elected him. Is any one else outraged at this? Are House Republicans asleep at the wheel???…
    Read More “Disastrous PA Severance Tax Bill Debated in House, Makes Progress”

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    Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations

    Sunoco Logistics Partners (part of and owned by Energy Transfer Partners) has had its fair share of “inadvertent returns” (i.e. leaks of drilling mud) while drilling underground for the Mariner East 2 pipeline project that stretches across the width of Pennsylvania. Some would say Sunoco has had more than its fair share of mud spills. Bear in mind that drilling mud is otherwise known as bentonite–the nontoxic clay mixture used to cool the drill bit as it chews away underground. 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. When installing a pipeline, you don’t just dig a trench across a roadway or dam up a creek or river. Instead, you use horizontal directional drilling (HDD) to dig under it. ME2 is some 350 miles long, so there are a number of places where HDD must be used. There are always small drilling mud spills, or inadvertent returns, associated with HDD work. However, Sunoco has had, at last count, 96 such instances (see the list below). Antis seek to make the most of each and everyone spill episode. The most recent such spill is associated with a sink hole believe caused by HDD drilling in Delaware County last week (see ME2 Drilling in Delaware Co. Creates Small Sinkhole, Antis Swarm). The PA Dept. of Environmental Protection (DEP) sent a notice of violation for last week’s mud spill (see it below). DEP officials admit they are somewhat overwhelmed with trying to keep an eye on the project and are considering “additional enforcement” actions against Sunoco LP for ME2…
    Read More “Sunoco Continues to Rack Up ME2 Drilling Mud Spill Violations”

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    PA Class Action Royalty Lawsuit Against XTO Settles for $11M

    A journey which began for Pennsylvania landowners in Butler County, PA in July 2015 is nearing an end. Two Butler County, PA landowners with a combined 245.7 acres of land leased to XTO Energy sued XTO in 2015 claiming that XTO is breaking the lease agreement by paying royalties below 1/8 of what XTO receives in revenue for the gas (see PA Landowners Sue XTO Energy for Shorting Them on Royalties). The case, known as Marburger et al V. XTO Energy Inc., asserted the lease signed with landowners did not include language that would allow XTO to deduct post-production charges (that they had been deducting). The two landowning families that launched the lawsuit, the Marburgers and the Thieles, sought to turn the lawsuit into a class action, involving potentially hundreds or thousands of others. It didn’t take long for XTO to oppose the lawsuit and its certification as a class action (see XTO Files Motion to Dismiss Royalty Lawsuit in Butler County, PA). Since that time we’ve not heard much of anything about the lawsuit. And then out the blue comes word that via arbitration, XTO has agreed to settle the lawsuit. The settlement includes turning it into a class action, and paying out a total of $11,010,000. As part of the settlement, XTO admits to nothing. That is, they do not concede the plantiffs have a valid case against them. It’s simply cheaper to settle it and move on rather than to keep fighting. Below we have the relevant court documents with the details of the settlement…
    Read More “PA Class Action Royalty Lawsuit Against XTO Settles for $11M”

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    Penn State MCOR Says Drilling, Jobs on an Uptick in PA Marcellus

    There’s no doubt about it, there is more drilling in the Marcellus/Utica today than there was just one year ago. Just look at the rig counts then and now. However, the recovery has been slow in coming, and even though more people are back at work and more work is getting done, activity is still not at the level of a few years ago, before the price crash and downturn. Pennsylvania Business Central recently interviewed Tom Murphy, co-director of the Marcellus Center for Outreach and Research at Penn State University, to ask him about the current uptick in Marcellus activity. Where are the rigs operating now? What about workers who were laid off–are they now back at work? And what role does price play in driving the uptick? Murphy gives some enlightening answers to those important questions…
    Read More “Penn State MCOR Says Drilling, Jobs on an Uptick in PA Marcellus”

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    Riverkeeper Campaign Pressures Towns to Support DRBC Frack Ban

    THE Delaware Riverkeeper is a far-left, radical environmental group that is the self-appointed “caretaker” of the entire Delaware River Basin. It’s run by Maya van Rossum and gets its funding from a variety of foundations, mainly the William Penn Foundation. Riverkeeper’s cause célèbre is a complete, and permanent, ban on fracking in the Delaware River Basin. They’d actually like a permanent ban throughout Pennsylvania (and every other state in the Union), but they’ll take a ban in the River Basin as a first step. Unfortunately Riverkeeper has the ear of the Delaware River Basin Commission (DRBC) and has pressured the DRBC for years to institute a total ban on fracking. The DRBC finally took a step in that direction in September (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). There has been no fracking in the River Basin for 10+ years. So why the urgency for the board to pass a ban now? Because a Wayne County, PA landowner has taken the DRBC to court, challenging their right to impose such a ban. After all, the adjacent Susquehanna River Basin (overseen by the Susquehanna River Basin Commission) is loaded with fracking–with NO harmful effects on water supplies. Earlier this month oral arguments were heard in federal court on the case. The attorney for the DRBC fainted under heaving questioning (see DRBC Attorney Faints in Federal Court During Questioning). The case was postponed to an as-yet-unscheduled future date. Neat trick–faint and the case is postponed another few months. In the meantime, Riverkeeper is obviously not convinced the DRBC will follow through with their threat to pass a permanent ban–or perhaps they want to give the DRBC more ammunition to do so. Riverkeeper is hosting a webinar next Monday–to stoke their crazy groupies. Mamma Maya’s sidekick Tracy Carluccio (Riverkeeper Deputy Director) will give the faithful instructions for how to harass local town boards to the point they’ll sign a petition to support a permanent ban. MDN has a mole on Riverkeeper’s email list and we have their invite below…
    Read More “Riverkeeper Campaign Pressures Towns to Support DRBC Frack Ban”

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    PA Rep. Garth Everett Explains Severance Tax Comments to MDN

    PA Rep. Garth Everett

    Earlier this week MDN ran a story (and our response) highlighting what appears to be a change in position by Pennsylvania Rep. Garth Everett, Republican from Muncy (Lycoming County), PA, on the issue of a severance tax (see Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap). Everett had spoken to the local Williamsport Sun-Gazette and the resulting article quoted Everett as saying he, “feels the time has come for the gas industry to pay a tax on production costs.” The article also said that he is, “fine with a [severance tax] measure that doesn’t transfer the tax to landowners.” Which led us to chide Everett–someone we’ve long admired. Folks around Lycoming County, where Marcellus drilling is big business, read the Sun-Gazette article and the MDN response and began calling Everett to ask him about his sudden change. Everett contacted MDN, requesting a call to clarify what he did–and did not–say to the Sun-Gazette. MDN is happy to report that we now have the full story, and feel much better, about Everett’s position on the severance tax. Here’s a summary of our conversation with Rep. Garth Everett…
    Read More “PA Rep. Garth Everett Explains Severance Tax Comments to MDN”

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    A Closer Look at Kalnin Ventures and Their Marcellus Investments

    It’s time to look deeper into Kalnin Ventures, a Denver, CO-based investment firm that invests in U.S. upstream (mostly shale) deals. Sound familiar? Kalnin has been the “front man” for Banpu Pcl, Thailand’s largest coal producer. Over the past year and a half Kalnin/Banpu have snapped up some 55,000 acres and 355 shale wells–in the northeast Pennsylvania Marcellus (see our Kalnin/Banpu stories here). At least, we thought Kalnin was the “front man” for Banpu. It’s certainly Banpu money buying the leases and the wells, so we figured Kalnin was just an American subsidiary on paper for Banpu. But it turns out the truth is more nuanced. Kalnin is its own company. Yes, Banpu is the major benefactor providing the funds, but Kalnin is clearly in the driver’s seat with these Marcellus deals. Kalnin is not an operator. While news coverage may say Kalnin is “a top-20 gas producer,” as the Bloomberg article below says, that does not mean Kalnin is an operator. They’re investors. They’re owners. Other people do the actual drilling and management of the wells. In checking out the Kalnin website we found this description of the company: “Kalnin Ventures currently is backed by investors with equity fund commitments of USD 500 million, within its oil and gas fund BKV Oil and Gas Capital Partners, L.P. The company seeks to invest in attractive upstream oil and gas opportunities in North America (United States of America and Canada) with the goal of creating long-term sustainable value in the energy industry.” And right under that statement, this interesting statement: “Kalnin Ventures supports and upholds biblical principles as the foundations for the company’s values and underpins our company’s promise of integrity and transparency to our investors and partners.” Hats off to Kalnin for being upfront and unashamed of their God-honoring, faith-based principles. Not many companies have the guts to be so bold these days. Here’s an inside look at Kalnin Ventures, and how they continue to make money on Marcellus shale deals–even in a low-gas-price world…
    Read More “A Closer Look at Kalnin Ventures and Their Marcellus Investments”

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    PA House Speaker Mike Turzai, Friend of O&G, Running for Governor

    Mike Turzai – PA House Speaker

    It’s certainly past time to end the miserable failure that is the Tom Wolf Administration. Republicans are lining up to run against him. But first will come a primary. One prominent state figure, PA House Speaker Mike Turzai, has kept his intentions about running close to the vest. But yesterday Turzai announced he would throw his hat in the ring, to run in the Republican primary in 2018 for the right to face off against failure Tom Wolf in November. We think it’s a no-brainer. Turzai has been a steadfast friend of the Marcellus industry over the years. It has been Turzai’s opposition that has held the line against a Marcellus-killing severance tax. He’s conservative. He’s pro-gas. And he’s anti-tax. Turzai is the leader PA needs to recover from the bumbling Tom Wolf…
    Read More “PA House Speaker Mike Turzai, Friend of O&G, Running for Governor”

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    Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap

    We have long admired Pennsylvania State Rep. Garth Everett, Republican from Muncy (Lycoming County), PA. Everett has been in the forefront of trying to get “minimum royalty” legislation passed that would guarantee PA landowners would get minimum royalty payments of 12.5%–regardless of any kind of post-production expenses. He’s been introducing a bill to do just that for the past three sessions (six years), the most recent attempt this year in February (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Although Everett’s stance on the minimum royalty bill has him at odds with the drilling industry, he has always struck us as pro-gas and a friend to the industry. So we were particularly saddened to read Everett is now voicing support for a Marcellus-killing severance tax. Perhaps Everett has been influenced by fellow Lycoming County politico State Sen. Gene Yaw, who sold out the industry by supporting a severance tax during the recent budget votes (see Traitorous PA Senate Republicans Pass Severance Tax Bill). MDN note: Sen. Yaw reached out to MDN several times with caustic comments, taking issue with our view of his betrayal of the industry. Or maybe Everett’s newfound love of taxation has happened in response to the industry vigorously opposing his minimum royalty bill for the past six years, i.e. revenge. Whatever the reason, Everett is now saying he supports a severance tax–as long as the tax can’t be deducted from landowner royalties…
    Read More “Et tu Brute? PA Rep. Garth Everett Falls for Severance Tax Trap”

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    Court Lifts Atlantic Sunrise Stop Work Order – 2,500 Back to Work

    Yesterday was quite a roller coaster ride for Williams with regard to a work stoppage in building the $3 billion Atlantic Sunrise Pipeline. It was just two days ago that the Federal Court of Appeals for the District of Columbia issued an emergency stop work order for Atlantic Sunrise, idling some 2,500 workers in PA and costing the company $8 million a day in downtime (see DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work and Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work). The stop work order was in response to a lawsuit filed by the Sierra Club, Lancaster Against Pipelines and several other radical Big Green groups. Williams, the builder of the pipeline, filed a “Motion for Clarification” to ask the court what the order means, stop only the work on the pipeline in Pennsylvania? Or does the stop work order include other states too, where new gas supplies are already flowing? In their motion, Williams also asked the court to make the Sierra Club and the other radical groups to collectively post an $8 million per day bond–to cover Williams’ expenses if/when the radicals lose their case. After all, their actions are costing Williams $8M a day. Early yesterday the court responded to Williams’ motion with an answer: Stop work only applies in PA, and no, the court won’t make the radicals post an $8M/day bond. Bummer. That was the low point of the day. But then came a second response from the court in the late afternoon: The court said (our words), “The emergency stop work order is over, you can go back to work, and after reviewing the petition from the nutjobs, we’ve found they don’t have a case. Case dismissed.” That was the high point of the day. And so today, Thursday, Nov. 9, some 2,500 PA workers are back on the job laying pipe–including laying pipe through a cornfield in Lancaster County owned by a group of misguided nuns (who have sued to stop it). The nuns’ property will be the very first location to see the new pipeline installed and buried…
    Read More “Court Lifts Atlantic Sunrise Stop Work Order – 2,500 Back to Work”

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    Energy Transfer 3Q17: ME2 Startup Slips, Rover Complete in 1Q18

    Energy Transfer’s top brass delivered some bad news and some good news on yesterday’s analyst phone call to discuss third quarter 2017 performance. Two projects vital to the Marcellus/Utica are being built by ET–Mariner East 2 (ME2) and Rover Pipeline. The bad news is that ME2, a natural gas liquids (NGL) pipeline project that stretches from eastern Ohio across the state of PA to the Marcus Hook refinery near Philadelphia, will be delayed an extra nine months. ME2 has a new in-service target date of “second quarter 2018.” Progress on ME2 is not as fast as it could be primarily due to an ongoing onslaught of lawsuits by Big Green organizations, coupled with delays from the PA Dept. of Environmental Protection. The good news for ME2 is that by Dec. 31st, 99% of the pipeline will be in the ground and buried. The news for Rover is all good. Rover is a $3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. Rover had been dogged by problems with horizontal directional drilling (HDD), but those problems are now behind it. Yes, head of the Ohio EPA, Craig Butler, continues his Captain Ahab routine to try and stop the project (see OH EPA Director Manipulates Atty General to Sue Rover Pipeline). So far he’s been unsuccessful. At any rate, construction in Ohio and elsewhere is full speed ahead. On yesterday’s call ET CFO Tom Long said Rover Phase 1 (both A and B) will be done by Dec. 31st. That’s very good. Long said the company is “very confident” Phase 2 of Rover will be online no later than March 31, 2018. Also very good. Below we’ve grabbed excerpts of yesterday’s analyst call to share, covering both ME2 and Rover…
    Read More “Energy Transfer 3Q17: ME2 Startup Slips, Rover Complete in 1Q18”

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    Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work

    Just before the holidays, thousands of workers who were working on the Atlantic Sunrise Pipeline project have been escorted to the unemployment office–courtesy the odious Sierra Club. Yesterday we brought you the sad news that the Sierra Club’s lawsuit has stopped work on the $3 billion pipeline project (see DC Court Forces “Emergency Stop” of Atlantic Sunrise Pipeline Work). Companies building closely-vetted and highly regulated projects like Atlantic Sunrise project are jobs creators. The Sierra Club is a jobs destroyer. We asked Williams how many workers have been idled because of the work stoppage from the “temporary” order from the court. Williams spokesman Chris Stockton replied: “The exact number is 2,500.” He also said this: “It is costing about $8 million per day in idle construction costs.” The Clubbers’ frivolous lawsuit is causing real pain and real suffering for thousands of workers…and their families…and their children. Williams issued a press release yesterday to say they have filed a “Motion for Clarification” to determine what the emergency stop work order affects–just construction work in PA? Or the work they’ve already done (and are doing) outside of PA, which would stop new quantities of Marcellus gas already flowing south? Williams says they expect the court will conduct their review “expeditiously” and end this charade (our word) very soon. Antis rejoiced in the news of the stop work order, including one of the “leaders” of the airheaded opposition, who sounded like an 80s Valley Girl when she said: “I can’t believe it, like, does this mean they can’t continue with construction? Like, seriously?” Meanwhile, like some 2,500 people are like tragically out of work–including like 370 in Schuylkill County alone. Merry Christmas from the Sierra Club and from a small group of radicals called Lancaster Against Pipelines…
    Read More “Sierra Club Pipeline Lawsuit Throws 2,500 in PA Out of Work”

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    Baker Hughes Oct Rig Count – US Slides by 18, PA Drops 1 Rig

    The International (non-U.S.) Baker Hughes rig count for October 2017 was 951, up 20 from the 931 counted in September 2017, and up 31 from the 920 counted in October 2016. The U.S. rig count for October 2017 was 922, down 18 from the 940 counted in September 2017, but up 378 from the 544 counted in October 2016. Notice that we have almost as many rigs operating in the U.S. as the entire rest of the world (minus Canada). Canada’s rig count has improved a lot since earlier this year. However, Canada’s October rig count drooped a bit–204 in October (down 4 from September) but up 48 from October 2016. What about rig counts in the Marcellus/Utica? Pennsylvania lost one rig and ran an average of 32 rigs during October, versus Ohio running 29 rigs and West Virginia running 15 rigs, the same as September…
    Read More “Baker Hughes Oct Rig Count – US Slides by 18, PA Drops 1 Rig”