PA Republican Senate Changes Lease Terms for Landowners
The Pennsylvania State budget is a complicated pile of…bills. At it’s core are three basic budget-related bills that implement the $31.9 billion state budget (unwisely) passed in June. It was unwisely passed because Republican lawmakers voted for a plan to spend money without having a way to pay for it. Stupid. PA Gov. Tom Wolf (liberal Democrat) demanded part of the new revenue required to pay for all that wild spending is to tax the Marcellus industry with a severance tax–on top of the existing impact tax (already the equivalent of a severance tax in other states). One of the three main bills to pay for the budget is the Fiscal Code bill–House Bill 674. HB 674 was adopted by the PA Senate on Monday (vote of 41-9). In the Senate version, which now goes to the House for final adoption, there are a number of “environmental riders”–or bits of legislation that have nothing to do with the budget or spending, but tacked on as a way of getting them passed without the mess of voting on them individually. Swamp politics. One of those provisions is “SECTION 1610-E” which gives drillers the right to reactivate old, non-producing wells after they have not been producing (and the lease considered terminated) under certain conditions…
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As MDN has explained in a companion story appearing today (see PA Republican Senate Changes Lease Terms for Landowners), the PA legislature has slipped a number of “environmental riders” into one of the final budget bills. The riders are bits of legislation that have nothing to do with the budget or spending, but tacked on as a way of getting them passed without the mess of voting on them individually. One of those riders affects the potential to drill for oil and gas in southeast PA. Back in 2012, an eleventh hour deal was snuck into the Pennsylvania budget signed into law by then-Gov. Tom Corbett (see 
EQT’s Equitrans (pipeline) Expansion Project is on track to begin construction by the end of this year–likely sometime in November. We first covered this project in 2015 (see 
The Pennsylvania Supreme Court said last week it will accept a case about strippers–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 drilling law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see 
As predicted earlier this week, yesterday the Pennsylvania House Finance Committee voted to approve a 3.2% severance tax on top of the existing 5%+ impact tax (see 
Yesterday the Pennsylvania House of Representatives passed House Bill (HB) 542 to try and finalize the three month plus late PA budget. This latest bill (see the summary below) uses mostly borrowing, against tobacco settlement money and small tax increases on online businesses and fireworks distributors to balance this year’s budget. The bill does NOT include a severance tax. Sounding like Johnny One-Note, PA Gov. Wolf immediately said any final deal must include a Marcellus-killing severance tax, or he won’t sign it. Some of the traitorous Republicans in the Senate still want to see a severance tax too (see 
A group of anti-fossil/anti-pipeline radicals held a rally yesterday to spread lies and innuendo about the safety of pipelines in general, with a focus on stopping construction of the Mariner East 2 pipeline project in particular. Supposedly 150 people turned up (including Democrat lawmakers) to bash pipeline projects in the Keystone State. What mainstream media reports don’t tell you is that it was a staged event, organized by the loathsome Food & Water Watch–a Big Green group that lobbies against all fossil fuel projects. Media reports tell you a bunch of moms and dads and kids “negatively impacted” by pipelines showed up to plead their case. Bunkum. It was a publicity stunt, and the calls by these radicals to suspend pipeline construction are a pipe dream (pun intended). Here’s how it was reported, followed by the real story…
Greg Guidry is the executive vice president of Shell’s unconventionals business. That is, he’s in charge of shale drilling for the company. Talking to a reporter at the Energy Dialogues LLC’s North American Gas Forum earlier this month, Guidry said shale is “a future growth opportunity because of its long-term growth potential.” Guidry is interested in promoting shale as “a lower-carbon energy source.” He believes the way to properly promote shale gas is by partnerships between the oil and gas industry and non-governmental organizations (NGO). Guidry then used the Center for Responsible Shale Development (CRSD), a group headquartered in Pittsburgh, as the model for how such a partnership can and should be done. In March 2013, the Center for Sustainable Shale Development (CSSD) burst onto the scene. It had been a closely guarded secret, the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. They worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, it would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe driller. In January of this year the CSSD changed its name to CRSD–the Center for Responsible Shale Development (see 
RINOsaur /ri-no-sor/ (noun) – 1. a very old (fossil-worthy) Republican-In-Name-Only, someone who, if he were truly honest, would have registered as a Democrat decades ago. 2. so-called moderate Republican whom voters should have been put out to pasture decades ago. 3. Gene DiGirolamo. Pennsylvania State Rep. Gene DiGirolamo, a Republican-in-Name-Only (RINO) from the Philadelphia area, has been trying to punish the Marcellus industry in the state since 2011 when he first introduced legislation to impose a Marcellus-killing severance tax. And pretty much every year since then he has re-introduced a severance tax bill. Sometimes it’s for 3.2%. Other times 4.9% (
Yesterday MDN told you about an effort under way in Pennsylvania to reign in the ever-expanding power of executive agencies in Pennsylvania, like the Dept. of Environmental Protection, by passing a law that requires the PA legislature to approve “economically significant” final regulations (see 
MDN friend Tom Shepstone (Natural Gas Now) has long pointed out that the William Penn Foundation funds a variety of front groups to push an anti-fossil fuel agenda. William Penn funds groups like the Sierra Club, THE Delaware Riverkeeper, and the New Jersey Conservation Foundation. William Penn also funds “news” outlets, including StateImpact Pennsylvania and NJ Spotlight. So this is how it happens: Riverkeeper, the Sierra Club and others issue wild claims about a project like the PennEast Pipeline, and then StateImpact and NJ Spotlight report it like it’s news. Incestuous. At the center of it all is the William Penn Foundation. MDN friend Kevin Moody does a great job of exposing this web of deceit targeting PennEast Pipeline in an article published on The Daily Signal…
The Pittsburgh Post-Gazette has done it again. They’ve posted another fake news story about the Marcellus Shale industry. Here’s how it works: A Big Green group, like the odious Earthworks, enlists the help of a servile, biased “reporter”–feeding all sorts of false information to said “reporter”–the “reporter” essentially takes dictation, writes it up, and publishes it as “news.” Earthworks and Moms Clean Air Force, both national, radical, out-of-the-mainstream anti fossil-fuel groups, have colluded with the Post-Gazette to release a fake news “report” that says because some of Pennsylvania’s children go to school within a half mile of an oil or gas well, those children are endangered from emissions, including methane. Yeah, methane–you know, natural gas. IF methane happens to leak (which doesn’t happen often) it simply goes straight up into the atmosphere where it supposedly contributes to man-made global warming. It certainly doesn’t endanger anyone on the ground. The Big Green groups publishing the report say 311,000 kids in PA go to school near an oil or gas well (the vast majority being conventional, non-shale wells). Big Green totally lies about the risks. But let’s set that aside for the moment. Why are only children endangered? Why not adults too? Or pets? Or zombies? Big Green is (ab)using children in their narrative because everyone has a knee-jerk reaction when it comes to kids. We all will protect our children with our own lives–it’s an ingrained, automatic reaction. These sleazeballs are playing off that fear with a false report–and the Pittsburgh Post-Gazette is complicit in spreading the lie…