Why the PA House Must Reject 1-Sided Budget/Tax Deal from Senate
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…
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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 
There’s an app for that! Williams is launching an app (for smartphones) latter this month to connect Williams contractors with local businesses–to ensure as much of the work (and supplies) as possible is sourced from local businesses for the Atlantic Sunrise Pipeline project. This is a great sign that Williams believes they are about to receive final permits from the foot-dragging Pennsylvania Dept. of Environmental Protection (DEP) to begin work. In August, Williams will launch WillShop Local, a digital application designed to connect local businesses with contractors and construction crews working in the project area. The app is not for local businesses but for the contractors and workers working on the pipeline to locate local suppliers. So how do you, as a local business, get listed on the app? Glad you asked! Just 
Yesterday the American Petroleum Institute (API) released a new study showing that the natural gas and oil industry supported 10.3 million U.S. jobs and added $1.3 trillion to the nation’s economy in 2015. The study, “Impacts of the Natural Gas and Oil Industry on the US Economy in 2015” (full copy below) found that jobs supported by the o&g industry increased by half a million since 2011, and showed that all 50 states, whether producing or non-producing, continued to benefit from the o&g industry. The study was conducted by PricewaterhouseCoopers (PwC) and commissioned by API. Yes, it’s an industry-funded study. But hey, if we don’t do the research and toot our own horn, you can be sure anti-fossil fuelers won’t do it for us! This is solid, no-nonsense (and real) economic research. We thought it would be interesting to look at the impact of the o&g industry in Pennsylvania, Ohio and West Virginia–the only three states producing Marcellus and Utica Shale gas and oil. Yes, each of those states still has a thriving conventional o&g industry as well and conventional numbers are part of the study–but let’s be honest. The unconventional (shale) sector dwarfs production of the conventional sector. When you look at o&g’s impact in our region, you find that it created 322,600 jobs in PA, 262,800 jobs in OH, and 70,900 jobs in WV. Value added (economic impact) for each state was: $44.4 billion in PA, $37.9 billion in OH, and $8 billion in WV. Add them all together and you get roughly 656,000 jobs and $90 billion of economic contribution in 2015. From one industry–oil and gas. WE LOVE FOSSIL FUELS!…
When a state produces more energy than it consumes, that state is a net energy “supplier” (or exporter). States consume energy in the form of oil, gas, coal and electricity, primarily. They produce energy in the same way. Our favorite government agency, the U.S. Energy Information Administration, recently released State Energy Data System estimates for net energy supply, state by state, from 1960-2015. Their analysis found that currently, for the year 2015, some 12 states produced more primary energy than they consumed, while 38 states and the District of Columbia were net recipients of energy. Among the state producing more than they consume, two of the top five are Marcellus Shale states: Pennsylvania and West Virginia. PA’s net supplier status is due mostly to the rise of the Marcellus. In the case of WV, the state still is a big coal producer, but it is the Marcellus that lifts the state into the column of net energy supplier…
Yesterday the Pennsylvania Senate voted 26-24 to pass a so-called compromise budget bill that adopts a Marcellus-killing severance tax. What’s most distressing about the situation is the betrayal of Senators like Gene Yaw, of northeastern PA. The bill not only raises taxes on drillers, slapping a severance tax on top of the existing impact fee, it also slaps a 5.7% gross receipt tax (GRT, or “usage tax”) on natural gas used by homes and businesses, meaning PA gas bills will go up starting August 1st (if the bill passes the House). What happens next? The bill has gone to the PA House for consideration. The pressure on the House, and Speaker Mike Turzai, is intense. The Senate has done a big disservice to the House by not getting agreement ahead of time. But we deal with the cards in our hand. What’s going to happen now?…
As part of the horrible severance tax bill the Pennsylvania Senate passed yesterday (see today’s companion story), Republican Senators placed into the bill what they hope is “an olive branch” (more like a withered twig) by including reforms to the regulatory process they say the drilling industry has been asking for. Senators included a provision to have third party contractors (people outside of the Dept. of Environmental Protection) review applications at the DEP, including permits for oil and gas drilling, when the DEP can’t review those applications in a timely manner. There’s also a provision that certain permits, like those granted to drillers for sediment and erosion, will automatically be granted if the DEP drags its feet and doesn’t grant the permit by the current, specified deadline (45 days, with a possible 15 day extension). Those permits are currently taking up to 200 days to be granted. Enough. If the DEP can’t get it done, the permit gets granted automatically or goes to someone on the outside who can get it done. There are other provisions in the severance tax bill as well. Of course these proposed changes have antis in an uproar. You see, “compromise” for antis and Democrats means “you do it all our way, and we give you nothing in return.” That Republicans actually want something in return for voting for a horrible tax bill is beyond belief for antis, who are now squealing like stuck pigs. Here’s what we’ve been able to find out about the proposed changes, the “olive branch” offered by traitorous Republicans, as part of the newly passed severance tax bill…
Pennsylvania Senate Majority Leader Jake Corman and Senate President Pro Tempore Joe Scarnati have betrayed the Marcellus gas industry and should be tossed out on their rear-ends in the next election. Corman, Scarnati and other so-called Republicans in the PA Senate leadership have signed on to promote a severance tax plan to “close” the budget gap THEY CREATED by idiotically passing a bloated spending plan they couldn’t pay for. Now, caving to pressure from a tax-and-spend liberal media and tax-and-spend Democrat Party, PA Senate Republicans have opened a door that should never have been opened. PA’s Marcellus drillers already pay the equivalent of a 9.16% severance tax–highest in the country (called an impact fee). This new plan leaves the impact fee in place, AND places a severance tax on top of it, guaranteeing LESS drilling (and less tax money) for PA, not more. How utterly stupid is that? Last night 19 members of the PA Senate Appropriations Committee voted on a plan that, among other things, puts a 2 cents per thousand cubic feet severance tax on all natural gas produced, which, according to the wizards of smart in the Senate, will raise an extra $108 million. Today the package goes to the full Senate for a vote, where it is expected to pass. It then goes to the House. If a severance tax is passed (big if), Gov. Wolf can finally “check a box on a campaign promise” to give away other people’s money to teacher’s unions. Our only line of defense now is the steel backbone of PA House Speaker Mike Turzai and the House Republicans, to hold the line and reject the severance tax proposal coming from the Senate…
Anti-fossil fuelers who irrationally hate anything to do with natural gas, including the super-safe pipelines that flow it, have found a sympathetic judge inside the Dept. of Environmental Protection’s Environmental Hearing Board to side with them in a campaign to stop the Mariner East 2 pipeline project. At least temporarily. Yesterday Environmental Hearing Board Judge Bernard Labuskes, Jr. issued an order stopping all underground horizontal directional drilling (HDD) across PA related to the ME2 project. The order affects some 55 different locations where HDD is being used. Headlines in left-leaning anti pubs like StateImpact Pennsylvania and the Pittsburgh Post-Gazette mislead people into thinking ALL construction of ME2 has stopped. That is manifestly untrue. The only thing stopped, for the next two weeks, is HDD. The other 90% (or more) of the project, which is digging trenches for the twin pipelines, continues. Only in locations where ME2 must drill underground–say under a stream or roadway–are affected by the judge’s order. The order is 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 
The lengths to which the leadership of the Democrat Party in Pennsylvania is willing to go to tax Marcellus Shale drillers is amazing. And alarming. As we have pointed out, repeatedly, PA does not have a revenue shortfall problem–it has a spending problem. Like an alcoholic you can’t reason with and convince to stop drinking, PA Dems are taxaholics–addicted to sticking their fingers in other people’s pockets to transfer money to voters who will keep them in office. That’s the sleazy, disgusting mess in Harrisburg going on right now. Republicans stupidly voted to pass a $32 billion state budget with only $30 billion of it covered by current revenue sources. So now the pressure is on to cover the “gap” between expected revenue and overspending. From the very beginning of Gov. Tom Wolf’s tenure as the most failed governor of PA in our lifetime, we pointed out Wolf’s desire and plan to pass a new tax on a single industry, the Marcellus industry, as nothing more than political payback for teacher’s unions. The unions supported and voted for Wolf, and he dearly wants to give them money via a new severance tax, as payback. The interesting/jaw-dropping thing is, the teacher’s unions admit it! They admit, openly via a recent op-ed article penned by Jerry Jordan, president of the Philadelphia Federation of Teachers, that a severance tax is needed for union members. Do Pennsylvanians not see this for what it is–theft and political graft? Jordan wants PA legislators to aim the gun of the government at the heads of drillers (and landowners), take their money, and hand it over to union members…
When huge ethane crackers like the proposed Shell cracker in Beaver County, PA use steam to “split” or “crack” ethane to form ethylene (the raw material used to make plastics), it takes a lot of energy, and there’s a lot of “leftover” energy and leftover carbon dioxide (CO2). As the mythology goes, more CO2 in the atmosphere leads to global warming (if you believe in that sort of thing). Scientists have long known of other ways to convert “heavier” hydrocarbons, like ethane, into “lighter” hydrocarbons, like ethylene, using metals via a chemical process. But the metals used are rare and expensive–things like rhodium, ruthenium and iridium. Researchers at the University of Pennsylvania say they have found a way to use cheaper, more abundant metals, like titanium, to transform natural gas, ethane and other hydrocarbons into more useful chemicals like ethylene. The big bonus? No leftover CO2 to worry about…
Radical anti-fossil fuelers with THE Delaware Riverkeeper and New Jersey Sierra Club, along with a mish mash of other fringe “environmental” groups, are becoming shrill in their demand that fracking be permanently banned in the Delaware River Basin. Riverkeeper, Sierra Club and other nutjob groups are this week delivering a petition they claim has over 63,000 signatures (many of them made up or dead) calling on the governors of the four states that are part of the Delaware River Basin Commission (DRBC) to vote to permanently ban fracking in the DRBC’s jurisdiction. Each day this week the group of, whatever you call them, are delivering the petitions in staged media events, in each state capital. These groups have wanted and lobbied for a permanent ban for years. Why push so hard for it now? What’s the urgency? Why go on the road now to demand an outright ban? There is only one reason we can think of for why these radicals are pushing so hard now: they are running scared, concerned that a lawsuit by a Wayne County landowner in federal court will go against the DRBC and finally force the issue, allowing fracking (see