Statewide PA

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    PA Gov. Wolf’s Non-Response Response on Atlantic Sunrise Delays

    Over the past year or more MDN editor Jim Willis has signed numerous petitions supporting the Atlantic Sunrise Pipeline project–but it wasn’t until he signed one at a recent Williams event that the got a response from Pennsylvania Gov. Tom Wolf. Atlantic Sunrise is a $3 billion, 198-mile natural gas pipeline project, most of which will get built in northeast Pennsylvania. The project is ready to begin construction, NOW, but still needs a few permits from the state Dept. of Environmental Protection (DEP). In an attempt to get the DEP (and Gov. Wolf) moving, Williams co-hosted an event in July to pressure the DEP and Wolf into granting final permits (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). As guests entered the event, held at the Shadowbrook Golf Course in Wyoming County, PA, they were asked to sign a petition supporting the project. The petitions were delivered to Gov. Wolf and the DEP. Perhaps signing a paper petition, instead of an online/electronic petition, did the trick. MDN received a form letter email response from Gov. Wolf (below). In his response, Gov. Wolf says he supports pipeline development, but that he also supports “strong regulations” to protect people’s health, water, air, blah-biddy blah blah. It is a masterful example of saying nothing at all, while trying to appear you’re saying something. Here’s what we “heard” in Wolf’s response: Screw you–the project will get approved when it gets approved and I don’t care when that is”…
    Read More “PA Gov. Wolf’s Non-Response Response on Atlantic Sunrise Delays”

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    Philly Refinery “Mired in Debt” – Fights for Survival

    In 2012, Sunoco inked a deal with The Carlyle Group to form a joint venture to keep Philadelphia’s historic refinery operating (see Sunoco & Carlyle Group Ink Joint Venture for Philly Refinery). The jv was called Philadelphia Energy Solutions (PES), and its CEO was the charismatic Philip L. Rinaldi, who was called “fossil Phil.” The refinery flourished–and saved 850 jobs. But PES hasn’t been without its challenges. They tried to expand their operation at the Southport Marine site in Philadelphia by leasing an additional 200 acres to build a terminal for shale oil imports and exports. But in the end, Gov. Wolf (a dunce) decided the land next to the refinery would be better used as a parking lot for imported cars coming from Japan (see PA Gov Wolf Kills Plan for PES Refinery Expansion in Philadelphia). Late last year fossil Phil decided to hang it up and retire (see PES’ Phil Rinaldi Stepping Down; Will Philly Energy Hub Die?). Can’t blame him. PES is now, according to Bloomberg, in a fight for its survival. The culprit is the exorbitant (we’d call it extortionist) fees PES must pay the federal government for something called Renewable Identification Numbers, or RINs. What are they? And will they spell the end of PES?…
    Read More “Philly Refinery “Mired in Debt” – Fights for Survival”

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    PA Rep. Ortitay Intros Watered-Down Minimum Royalty Bill

    Pennsylvania Rep. Jason Ortitay, Republican from South Fayette (Washington & Allegheny Counties), PA who replaced Jesse White in January 2015 (see Pro-Driller Ortitay Replaces Anti-Driller White in PA House) has introduced a new bill in the PA House to bridge the gap between landowners who want a guaranteed minimum royalty of 12.5% regardless of post-production costs, and drillers who adamantly oppose a guaranteed minimum royalty. Rep. Garth Everett, Republican from Lycoming County, has been the champion of landowners and their quest to stop what they see as an abuse of the contracts they signed by implementing a state-mandated 12.5% minimum royalty–even if post-production costs eat into it (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Landowners and groups representing them, like the National Association of Royalty Owners (NARO), point to abuses by companies like Chesapeake Energy and claim some drillers cook up deals with pipeline/processing companies to overcharge, deducting it from royalty checks, and then getting the money back from those pipeline companies via investments. Kind of a kick-back scheme. Drillers maintain you can’t upend legal contracts in response to one or two rotten apples in the barrel. Ortitay believes he can navigate the middle ground, proposing a bill that will require drillers to itemize the deductions made from royalty checks, and prevent drillers from sending landowners a bill, which is beyond-words offensive. Can you imagine any landowner signing a lease that requires the landowner to pay the driller when prices go low? It’s ludicrous, and Ortitay’s bill, House Bill (HB) 1708 aims to fix it…
    Read More “PA Rep. Ortitay Intros Watered-Down Minimum Royalty Bill”

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    More Evidence PA House Repubs Beginning to Cave on Severance Tax

    We continue to read articles about the ongoing effort by Pennsylvania Democrats and some squishy Republicans to slap a severance tax on top of an existing impact tax on natural gas drilling in the Keystone State. As we pointed out yesterday, Philadelphia teacher’s unions are in the forefront of a plan to grab money from drillers and funnel it into the pockets of their members (see Drumbeat Continues: Tax PA Shale & Give Money to Teacher’s Unions). The PA Senate cooked up a horrible plan to implement a “modest” severance tax, along with a gross receipts tax that will tax natural gas again, at the consumer level (see Traitorous PA Senate Republicans Pass Severance Tax Bill). The PA House has stood firm, thus far, against the plan. But then we read PA House Majority Leader Dave Reed is beginning to cave (see PA House Beginning to Cave on Severance Tax? Maybe…). We’re now reading about other members, people we long thought solid, like Rep. Garth Everett (Lycoming County) who now says “The new tax on drilling remains an option.” REALLY disappointing, Rep. Everett. The way the conversation is now going, the House doesn’t have the stomach to slap a gross receipts tax (GRT) on natural gas, phones and electric–but they are A.OK with a severance tax. Since the GRT, under the traitorous Senate Republican plan, is supposed to provide around $400 million in revenue and the severance tax $100 million, what happens without the GRT? Will House Republicans ratchet up the severance tax even more? It’s rapidly turning into a mess. Below is the latest chatter we’ve found, along with a new letter from the Marcellus Shale Coalition to the House leadership warning of the precarious situation a new severance tax will create for future job and economic growth in PA…
    Read More “More Evidence PA House Repubs Beginning to Cave on Severance Tax”

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    PennEast Pipeline Asks FERC for Expedited Final Approval

    Jeff Tittel, the head of the New Jersey Sierra Club, last week called President Trump a “fossil fool in the White House” and panned Trump for doing his Constitutional duty in appointing new members to the Federal Energy Regulatory Commission (FERC). Tittel’s latest titillation came in response to PennEast Pipeline sending a letter to FERC last Thursday requesting the agency move forward posthaste with granting the project a final certificate to proceed to construction–something that terrifies Tittel and his sidekick, THE Delaware Riverkeeper, Maya van Rossum. Tittel and van Rossum have staked their reputations and the reputations of their anti-fossil fuel groups on stopping PennEast. So once the bulldozers fire up and begin digging trenches, it’s all over for them. They might actually have to find real jobs. Below is PennEast’s request to FERC along with the instantaneous (and paranoid) reaction from several Big Green radical groups….
    Read More “PennEast Pipeline Asks FERC for Expedited Final Approval”

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    PA’s Regulatory Mess Slows Marcellus Drilling – Time to Fix It

    Since Tom Wolf assumed office as governor of Pennsylvania in January 2015, the state Dept. of Environmental Protection (DEP) has been in a downward spiral when it comes to the speed with which they approve permits for the Marcellus Shale industry. The DEP has a policy of issuing erosion and sedimentation permits 14 days from the date of application. These types of permits are common and necessary when building roads, well pads, etc. Lately it has taken the DEP 250 days to issue those permits! Permits related to drilling wells are supposed to take no more than 45 days. Those permits now average 93 days. The DEP is hopelessly backlogged–and it’s getting worse. When PA’s traitorous Republican Senate sold out and signed on to a Marcellus Shale severance tax back in July, the Senate also approved (as part of the budget bill) fixes to speed up the permitting process (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). Since DEP can’t seem to fix its own mess, the Senate is willing to “lend a hand” to help them get it done. Kathryn Klaber, former president of the Marcellus Shale Coalition and now CEO of The Klaber Group, writes about the necessary revisions to PA (and the country’s) regulatory mess. She makes the point loud and clear that tweaking regulations is not an attack on the environment, as radicals seek to spin it…
    Read More “PA’s Regulatory Mess Slows Marcellus Drilling – Time to Fix It”

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    Drumbeat Continues: Tax PA Shale & Give Money to Teacher’s Unions

    The steady, daily drumbeat coming from mainstream (i.e. fake) news outlets in Pennsylvania is that the PA House of Representatives is sitting on its hands, dithering, not doing anything about the so-called budget crisis. The fix is, of course, for the House to accept and pass the ludicrous plan from traitorous Senate Republicans that will tax natural gas a total of four times, with four separate taxes (see PA Business Roars Disapproval of Senate’s Plan to Tax Energy 4X). As we have pointed out, for years, PA Gov. Tom Wolf wants to slap a severance tax on top of an impact tax on Marcellus gas as a way of raising money to give to teacher’s unions (i.e. “education”). We’ve shouted this until we are hoarse, yet no one seems to notice that Wolf is attempting political payback by penalizing one industry in favor of another. From time to time we revisit the topic, using mainstream media’s own words against them–to indict them. Here’s yet another example. So-called Rev. Gregory Holston (from Philadelphia) in addressing a rally attempted to make the case that not adopting a Marcellus gas tax is tantamount to racism–because educational funding in PA is “unfair” and the state doesn’t spend enough on minorities in places like Philly. Standing right next to the “Reverend” at the rally was the president of the Philadelphia Teacher’s Union who said, “we are more than happy to lead the charge for a shale tax.” Do you need any more proof to believe our statement that the severance tax is nothing more than a way to funnel money to teacher’s unions?…
    Read More “Drumbeat Continues: Tax PA Shale & Give Money to Teacher’s Unions”

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    One of Nation’s Largest NatGas Microgrids Coming to Philly Navy Yard

    We’re starting to see more and more news about natural gas-fired microgrids, used for “peaking”. Microgrids are small electric generating plants, most often powered by natural gas. They usually produce a few megawatts of electricity. The concept of “peaking” means that during times of high electricity demand, these small microgrids kick on and produce electricity to help meet the demand. Although New York Gov. Andrew Cuomo doesn’t want fracking in the Empire State, he’s in the midst of paying for 11 microgrids throughout the state–all of them using natural gas, mostly fracked gas from Pennsylvania (see NY Building Not Just One, but Eleven (!) NatGas-Fired Micogrids). These microgrids are an important new market for Marcellus/Utica Shale gas. So we perked up when we spotted a story about and press release from Ameresco, headquartered in Massachusetts, that is building a new 6-megawatt microgrid for peaking electricity at the Philadelphia Navy Yard. It will, according to Ameresco, “anchor one of the largest private microgrids in the United States.” Although the announcement doesn’t say, we’re 99.99% sure the gas that will feed it will come from PA’s Marcellus Shale. In addition to the microgrid in Philly, Ameresco also announced a contract in northeast PA, with Luzerne Community College (Wilkes-Barre) to replace 21 outdated electric-resistance heating Roof Top Units (RTU), Heating and Ventilation Units (H&V), and Air Handling Units (AHU) with 21 new, natural gas-fired RTU’s and AHU’s. Yep, you read that right–dumping electric units for natgas units. How “cool” is that? (Pun intended)…
    Read More “One of Nation’s Largest NatGas Microgrids Coming to Philly Navy Yard”

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    PA House Beginning to Cave on Severance Tax? Maybe…

    MDN has covered the ongoing budget debate in Pennsylvania for months. The PA Senate and House are controlled by Republican majorities–but not necessarily conservative majorities. The Republicans fell into a trap set by the Democrats. They passed a ~$32 billion budget with only enough revenue to pay for $30 billion–meaning there’s a $2 billion gap that needs to be filled. Instead of doing the adult thing–cut spending–they decided to allow more spending and figure out how to pay for it “later on.” Later on came, and of course pressure intensified to punish a single industry–natural gas–in order to make up the shortfall. At the end of July MDN brought you the sad news that Republicans in the Senate sold out and voted for a severance tax (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Now the House remains. Will they sell out too? Under the leadership of Speaker Mike Turzai, we had hoped it would not happen. But a comment made yesterday by House Majority Leader Dave Reed has us wondering. Reed said higher taxes on energy sources used by homeowners, like natural gas, telephone, etc. (called a gross receipts tax) is going nowhere fast. However, as for a Marcellus Shale severance tax, Reed indicated they may deal. Although not an exact quote, one news source said Reed expressed this sentiment in his remarks yesterday: “A tax on Marcellus Shale natural gas extraction, which was in the Senate revenue package and projected to raise about $108 million in the current budget year, could come into play in a compromise plan.” The compromise appears to be if Republicans can get Democrats to privatize state liquor sales and/or legalize video gaming terminals, they would be willing to throw the Marcellus industry under the bus with a severance tax. Nice people, those House Republicans. Let’s hope it’s only Reed who feels that way…
    Read More “PA House Beginning to Cave on Severance Tax? Maybe…”

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    Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done

    Those opposing two major Energy Transfer projects–Rover Pipeline and Mariner East 2–will not be happy with the good news coming from ET this week. The company issued its second quarter update and held a conference call yesterday. During the call we learned that Phase 1 of Rover, a $3.7 billion, 711-mile Rover Pipeline project that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, is “substantially complete” with Phase 1A expected to be done next week and online asap. Phase 1A stretches from Cadiz to Defiance, which is most of Ohio. Phase 1B is a short segment from Seneca to Cadiz, and once ET gets clearance from FERC to drill horizontally under Captina Creek, it will only take them about 40 days to complete Phase 1B. If ET can convince FERC to allow them to restart more horizontal directional drilling (HDD) work, Phase 2 will be done soon as well–and the entire project will be up and running by the end of the year. More good news for Rover: The temporary ban on HDD work for Rover in two West Virginia counties that began two weeks ago has now been lifted by the WV Dept. of Environmental Protection. As for ET’s Mariner East 2 (ME2) pipeline project that stretches across Pennsylvania, 80% of the pipeline has been strung, more than 70% is welded and over half has been lowered in and covered up. As we reported yesterday and again today, ET subsidiary Sunoco Logistics Partners (building ME2) has brokered a deal with several radical environmental groups that will slow the project down some, but slow and done is better than no progress at all. Here’s an update on the good news about Rover and ME2…
    Read More “Energy Transfer: Rover Phase 1A Done Next Week; ME2 Half Done”

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    Judge Approves Sunoco Deal w/Devil; Radical Groups Brag About Win

    Yesterday MDN brought you the news that Sunoco Logistics Partners had cut a deal with the devil, meaning three radical Big Green groups, to slow down but eventually complete work on the Mariner East 2 natural gas liquids (NGL) pipeline project in Pennsylvania (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). The deal means Sunoco has to re-submit plans for underground horizontal direction drilling (HDD) in 47 locations to the PA Dept. of Environmental Protection (DEP) for review. The DEP will then get 21 days to review those re-worked plans. But the plan needed to be blessed by Environmental Hearing Board Judge Bernard Labuskes Jr. first. Yesterday Judge Labuskes gave the plan his stamp of approval. Now the three Big Green groups–Clean Air Council, Mountain Watershed Association, and Delaware Riverkeeper Network–are bragging about their victory. High-fiving each other and taking pot shots at the DEP and one of their own–Democrat Gov. Tom Wolf. Wolf is not “pure” enough for Big Green nutters. Only a complete shut-down of the project would be acceptable, which Wolf does not support. However, the Big Greeners are pragmatic. They’ll take half a loaf–in this case slowing the project down…
    Read More “Judge Approves Sunoco Deal w/Devil; Radical Groups Brag About Win”

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    Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2

    Energy Transfer’s Sunoco Logisitics unit has struck a deal with the devil–the devil being the Philadelphia-based (and odoriferous) Clean Air Council, THE Delaware Riverkeeper and Mountain Watershed Association–that will ultimately lift the current ban on underground horizontal directional drilling (HDD) for the Mariner East 2 NGL pipeline project. The three Big Green groups (well funded by colluding leftist organizations) filed an appeal with the Pennsylvania Environmental Hearing Board to block all HDD work following several drilling mud leaks, one of them fouling a water aquifer in Chester County (see Sunoco LP’s Generous Deal to Chester Co. Residents with Water Issues). The Hearing Board judge agreed and stopped all HDD work, temporarily (see PA Enviro Judge Puts 2-Week Pause on ME2 Pipeline Drilling). However, earlier this week the judge allowed a partial lift of the ban (see PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations). Sunoco and the Big Green groups have now “settled.” The terms of the “settlement” call for Sunoco to reevaluate and resubmit plans for HDD drilling at 47 locations for review by the Dept. of Environmental Protection (DEP). Landowners who live within 450 feet of a planned HDD site may request water well testing before, during and after Sunoco’s underground drilling activity. In return, the Big Green groups agreed to drop their appeal requesting no further HDD work. As deals with the devil go, perhaps this one isn’t so bad after all. However, we still question why the groups had standing to bring the action in the first place…
    Read More “Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2″

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    PA Business Roars Disapproval of Senate’s Plan to Tax Energy 4X

    Yesterday a group of Pennsylvania business and economic leaders from trade associations representing thousands of PA businesses held a conference call to roar their disapproval of the GOP-led Senate plan to impose high/new taxes on energy in the Keystone State. Those on the call included: Gene Barr, president of the Pennsylvania Chamber of Business and Industry; Terry Fitzpatrick, president of the Energy Association of Pennsylvania; David Taylor, president of the Pennsylvania Manufacturers Association; Mark Chasse, treasurer for Industrial Energy Consumers of Pennsylvania; Stephanie Catarino Wissman, executive director of Associated Petroleum Industries of Pennsylvania; David Spigelmyer, president of the Marcellus Shale Coalition; and Dan Weaver, president of the Pennsylvania Independent Oil and Gas Association. A group of heavy hitters. Their message was loud and very clear: no new severance tax, no new gross receipts tax. To enslave Pennsylvanians with these taxes now–to fix a single year’s budget–would sacrifice PA’s economic future. Gene Barr pointed out the Senate plan taxes natural gas four different times: 1. when drillers drill a well (impact fee); 2. the gas coming out of the well (severance tax); 3. when the gas gets used by consumers (gross receipts tax); and 4. if drillers make a profit, their profits are taxed too (income tax). It is a plan crafted to satisfy Big Education–to funnel money to teachers, rewarding them for voting Democrat. How many times do we have to point out this is not compromise, it’s insanity!…
    Read More “PA Business Roars Disapproval of Senate’s Plan to Tax Energy 4X”

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    Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement

    Eastern Panhandle Expansion – click for larger version

    In April, MDN brought you the news that Columbia Pipeline (now owned by TransCanada) has filed an application with the Federal Energy Regulatory Commission (FERC) to build a 3.5 mile, 8-inch pipeline that will carry natural gas from Pennsylvania to connect the Mountaineer Gas system in the Eastern Panhandle of West Virginia with the Columbia Gas Pipeline in Pennsylvania (see New 3.5 Mile Pipeline Project to Drill Under the Potomac River). The purpose of the Eastern Panhandle Expansion project is to deliver natural gas via local distribution channels (local utility Mountaineer Gas) to a new industrial facility in Berkeley County, WV, scheduled to open in Fall 2017, and to provide gas to other local businesses and residents in the Tri-State area. Most of the proposed pipeline crosses through a tiny sliver of Washington County, Maryland. The main “issue” with the project is that the pipeline will be drilled underneath the Potomac River, which serves as the border between WV and MD. That has radical anti-fossil fuelers in an uproar. As we pointed out in July, the project is in a fight for its life (see WV Fight Over Simple Expansion of Local Gas Delivery Pipeline). Lack of natural gas is strangling expansion in Jefferson County, WV. But that makes no difference to antis in Maryland who are kicking up a fuss and planning to stage a kayak protest in the Potomac. Below is an update on anti efforts to stop the project, and pro efforts to get it approved and built…
    Read More “Mountaineer Pipeline Under Potomac Latest Focus of Anti Movement”

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    3 PA Senate Bills Would Fundamentally Change Pipeline Economics

    Senator Andy Dinniman

    Pennsylvania State Senator Andy Dinniman (Democrat from Chester County, PA, near Philadelphia) is an anti-driller and anti-pipeliner. Dinniman recently introduced three bills that would, if passed, fundamentally change the economics and likelihood of whether or not pipelines are built in the Keystone State. The first bill Dinniman sponsored would create an “impact fee” on pipelines: 50% of the fee raised would go to the counties where the pipeline crosses, 40% would go to the local municipality where the pipeline is located, and 10% would go to the PA Public Utility Commission. The next bill would allow local municipalities and school districts to slap a big tax on pipelines–on top of the impact fee previously referenced. The final bill requires pipeline land agents to be registered with the Pennsylvania Real Estate Commission. There are elements in each of the bills that, under other circumstances, are interesting and we might even be able to support. SOME elements–not all. But coming from Dinniman the purpose is clear–he aims to shut down natural gas pipelines in PA…
    Read More “3 PA Senate Bills Would Fundamentally Change Pipeline Economics”

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    PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations

    On July 25th, a Pennsylvania state environmental judge issued an order blocking all underground horizontal directional drilling (HDD) work being done across the state to install the Mariner East 2 (ME2) pipeline (see PA Enviro Judge Puts 2-Week Pause on ME2 Pipeline Drilling). The order stopped drilling at some 55 different locations where ME2 must drill underground–say under a stream or roadway. The order was in response to an appeal by radical Big Green groups, including the anti-fossil fuel Clean Air Council (of Philly), THE Delaware Riverkeeper (Maya van Rossum), and Mountain Watershed Association (see Antis’ Fake Outrage at ME2 Construction “Spills,” Demand Stop Work). As we said at the time, although temporary, the two-week pause is troublesome and problematic because Big Green groups have convinced a DEP judge to hear a case that ultimately aims to stop the ME2 project. The somewhat good news is that last Thursday the same judge lifted the HDD drilling ban for 16 of 55 locations. Bear in mind digging trenches for the pipeline (over 90% of the work being done) continues and is not subject to the judge’s order. The odoriferous Clean Air Council (CAC) is the primary group doing the suing. In an interesting development, mainstream news is reporting Sunoco Logistics Partners (building the pipeline) is in “settlement negotiations” with CAC. Settling what, we don’t know. We’re not even sure why the CAC has standing to bring a lawsuit against the project in the first place…
    Read More “PA Enviro Judge Lets Sunoco Restart ME2 Drilling 16 of 55 Locations”