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?…
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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 
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 
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…
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 
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!…
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 
We’ve noticed a meme, largely started by an Associated Press article endlessly repeated and published in dozens of news outlets across Pennsylvania, that the recent budget deal (with a severance tax) passed by the traitorous Republican-controlled PA Senate “jams a shale tax and industry permits into unhappy package” that now sits before a House that essentially has no choice but to adopt it. Here’s the establishment “received wisdom” in a nutshell: Drillers don’t get what they want (a severance tax), but they do get what environmentalist wackos don’t want (streamlined approvals for permits). And guess what? “That’s politics.” And if you don’t like it, on either side of the equation, you’re an unrealistic dope who doesn’t know anything about politics. We manifestly reject that assertion. Here’s why this deal is one sided–a severance tax only deal. Big Green groups with endless pockets to fund litigation factories are already talking about how if this budget is passed with what they want (a high severance tax) but also with what they don’t want (streamlined approvals for permits), no problem. They’ll just sue to remove the streamlined permits part, leaving drillers with the high severance tax. That’s how “fairness” works for Democrats and antis. Get part of what you want, then litigate the rest–force it on people who don’t want it. That’s the strategy laid out in the AP article claiming both sides are unhappy, implying it’s a good deal because both sides are getting something they want and something they don’t want. The clear signal being sent by environmentalists is that they’ll litigate their way to happiness. Meanwhile the Marcellus industry will get the shaft, which is why the House MUST reject this budget as written…
What’s this? The Pennsylvania State Senate, which is controlled by the Republican Party, has added insult to injury. We’ve already told you about Republican traitors in the Senate who sold out their House counterparts by voting for a disastrous severance tax to raise money to give away to teachers’ unions (see 
We suspect Pennsylvania Gov. Tom Wolf (a Democrat) may be smoking some of the state’s medical marijuana–sampling the goods, just to be sure it’s safe, ya know. During an interview with a PA public radio station yesterday, commenting on the horrible budget bill passed by traitorous Senate Republicans, Wolf said, “I believe that the House will support the Marcellus Shale tax as well.” Notice the Freudian slip? Wolf WANTS to target the Marcellus industry. He called it a “Marcellus Shale tax” as opposed to a severance tax. The Dems are attempting to conflate a “Marcellus Shale tax” with things like a “cigarette tax.” Nasty, vile stuff–but if people want it, tax ’em to hell and back. RINOs in the Senate fell for the severance tax trap sprung by Wolf and the Dems. We predict the House will NOT pass the Marcellus tax, Mr. Wolf. We don’t smoke weed–so we have a clear head about these things…
Good news if you’re a welder, or interested in a welding career, and you live in southwestern Pennsylvania. Shell needs you. Shell is in the process of building a massive, $6 billion ethane cracker plant in Beaver County, PA (northwest of Pittsburgh). Cracker plants have lots of pipes that need to be welded as the plant goes up. While these jobs are not long-term, as in “the rest of you career,” they’re long enough, likely lasting several years. Steamfitters Local 449 is right now recruiting new apprentices, offering a free 17-week apprentice training program. Local 449 is holding an open house this Saturday…
In March, MDN told you about a small group of radical protesters who established a protest “camp” on a private farm along the path of the Williams $3 billion, 198-mile Atlantic Sunrise Pipeline in Lancaster County, PA (see