Statewide PA

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    PA Senator Reintroducing Bill to Reduce Marcellus Waste Reporting

    PA State Sen. Elder Vogel

    On Tuesday, PA State Sen. Elder Vogel (Republican from Beaver, PA) circulated a co-sponsor memo that states his intent to re-introduce a bill that will remove some of the hassles drillers now face with the recent adoption of new Marcellus drilling regulations. Specifically, Vogel wants to change the DEP (Dept. of Environmental Protection) regulation requirement that drillers must file paperwork to report the amount and disposition of drilling waste–which would include wastewater and drill cuttings–from monthly to every six months. Every gallon of frack and produced water that comes out of a well, and every square inch of leftover rock and dirt, must be tracked and a report filed. The new Chapter 78a drilling regulations adopted by the DEP requires monthly reports to be filled out–a virtual blizzard of paperwork. Vogel wants to make it more manageable with biennial reports instead…
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    PA Gov Wolf Signals his Support for Mariner East 2 Pipeline

    PA Gov. Tom Wolf

    PA Gov. Tom Wolf has been, to be frank, a disaster as a governor. On many issues. But the issue that primarily concerns us is the oil and gas industry. Wolf will soon introduce his third budget and for a third straight year he will call for a Marcellus-killing severance tax. He still owes the teachers unions payback for supporting him and getting him elected. Wolf pretty much screwed up the Dept. of Environmental Protection (DEP) when he installed an anti-driller as its head, John Quigley. He later fired Quigley when it was discovered Quigley was colluding with Big Green groups. Given Wolf’s treatment of the industry, it was with some surprise to read that Wolf, in comments made to a Chamber of Commerce group last week, mouthed his support for the Mariner East 2 NGL (natural gas liquids) pipeline that will traverse the state. The pipeline is opposed by a few anti-fossil fuel zealots and some townships along its route. The DEP is reviewing permits for the project and the hints coming from Wolf and the DEP are that the project will receive its approvals soon. Which is really good news…
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    RINO PA Senator from Philly Introducing 5% Severance Tax Bill

    Why doesn’t it surprise us that a Republican-in-Name-Only (RINO) State Senator from the 6th District (Bucks County, Philadelphia suburbs) is not only in favor of, but sponsoring a bill to levy a Marcellus-killing severance tax? PA State Senator Robert “Tommy” Tomlinson, an establishment lifer who has been in the state legislature since 1991 (first as a Representative, later as a Senator), sent around a “Co-Sponsorship Memoranda” yesterday asking Democrats, and along with any suckers from the Republican Party, to co-sponsor a bill he plans to introduce calling for a new severance tax on Marcellus drilling. Tommy wants to tax Marcellus drilling an extra 5%, on top of the existing impact fee, which is a severance tax under a different name, to give the money to (you guessed it) teachers unions. Tommy wants transfer millions of dollars out of the pockets of landowners and drillers and into the sinkhole of the failing “unfunded” pension system for state workers and teachers. The instantaneous effect of Tommy’s tax would be to kill all drilling in the state, which apparently doesn’t bother Tommy in the least…
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    EQT Wins Court Case Against PA DEP re $4.5M Wastewater Leak Fine

    In October 2014 the Pennsylvania Dept. of Environmental Protection (DEP) fined PA driller EQT $4.53 million for a leaky wastewater impoundment in Tioga County, PA (see PA DEP Levies Biggest Fine Ever, $4.5M Against EQT). While EQT did not say there wasn’t a problem with leaks at the site, they did say the way the DEP calculated the fine is unreasonable and arbitrary. In fact, EQT says the DEP levied the fine and took EQT to court because a few weeks prior EQT had sued the DEP over a different matter. EQT appealed the fine and the case to PA Supreme Court and a year later the high court handed EQT a “procedural victory” by saying EQT has a point about the manner in which the DEP is calculating the fine (see PA Supreme Court Gives EQT “Procedural Victory” in $4.5M Fine Case). The Supreme Court sent the case back to a lower court, PA Commonwealth Court, for follow up work. The work is done and EQT has won. A three-judge panel ruled that the method the DEP currently uses to assess fines–by how many days pollution lingers, instead of by how many days the initial release of pollution lasted–is not legal nor common sense. The judges said such a method in fining, “would result in potentially limitless continuing violations.” Under the old way of calculating fines, the DEP was considering upping the fine on EQT to an insane $157 million. Calculating it under the new way will mean a fine of around $120,000. This is a major victory for EQT and a reigning in of egregiously overzealous state regulators…
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    PA Gov Wolf Asks for Severance Tax 3rd Year in a Row

    Pennsylvania Gov. Tom Wolf is…what adjective can we use? Recalcitrant. Stubborn. Pigheaded. Stupid. Perhaps all of the above. Wolf is clearly in over his head and the most ineffective PA governor in more than a generation. When he assumed office in 2015, he floated a budget calling for a new 5% severance tax on the Marcellus industry–a tax which even his supporters admitted would be closer to 17% (see PA Official Admits Wolf Severance Tax Highest in Nation @ 17.3%). Such a tax would literally kill the entire industry. That budget deal was a disaster. Wolf held up the budget for nine months into the new budget year, and finally caved (see Hubris: PA Gov. Wolf Caves on Budget, then Claims He Won). Beaten but unrelenting, Wolf came back last year with yet another severance tax proposal–this time an astonishing 6.5% tax (see More on Wolf’s New 6.5% Severance Tax – What Could of Been). What a putz. Yes, he lost again. Republicans held firm and he dropped his demand. As we’ve chronicled repeatedly, Wolf insists on such a tax because of his quid pro quo payoff to teachers unions for their support in getting him elected. Sleazy. PA already has a higher tax rate on natural gas than other oil and gas producing states. PA has an impact fee plus a corporate income tax. The two together are, on average, higher than the severance tax rates in Texas, Oklahoma, Louisiana, Colorado and other o&g states. We’ve already seen big Marcellus drillers leave and go to other states. A severance tax will greatly reduce the amount of drilling in PA. So, it’s now Wolf’s third year and he is about to release another budget. And you will not believe it. This dolt is calling for a severance tax again! Third year in a row! But he won’t say how high of a tax, at least not yet…
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    Bill Aims to Fix PA DEP Conflict of Interest re Penalty Revenue

    PA Sen. Scott Hutchinson

    Pennsylvania State Senator Scott Hutchinson says the PA Dept. of Environmental Protection (DEP) has a built-in conflict of interest. The DEP has broad powers of investigating and assessing fines and penalties on the oil and gas industry for violations of the rules the DEP itself makes. The icing on the cake is that the DEP gets to keep the money it levies in fines and penalties. Hmmm. You make up the rules, you get to aggressively enforce the rules, and then you get to keep the money that results. What’s wrong with this picture? Hutchinson says if you put someone else (the PA legislature, in this case) in charge of the money raised from the fines and penalties, that makes the situation a little more fair and balanced. We couldn’t agree more…
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    Eastern Shore Files with FERC to Expand Delmarva Pipeline

    In July 2016 MDN told you about a smallish, but important pipeline project in the Delmarva Peninsula area, which includes most of Delaware and portions of Maryland and Virginia. Eastern Shore Natural Gas’ 2017 System Expansion project will bring new sources of natgas from an interconnection Eastern Shore has with the mighty TETCo (Texas Eastern Company) pipeline near Philadelphia (see PA/MD/DE Pipeline Project Heats Up with Open House Mtgs This Week). Although Eastern Shore, a subsidiary of Chesapeake Utilities Corporation, ran a non-binding open season in 2015, and although they pre-filed for the expansion project in May 2016, they have only just filed a full, official application with the Federal Energy Regulatory Commission (FERC). Originally the project was slated to run ~33 miles of pipeline looping in PA, MD and DE. That number seems to have gone down, to 23 miles. Compressor upgrades and other pipeline will also be added. Chesapeake Utilities, the parent company, calls the project the single largest such expansion in Eastern Shore’s history, a project that will bump up gas delivery volumes by 25%…
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    2 Failing Big Green Groups in PA Quasi-Merge, PennFuture & CVPA

    Two radical Pennsylvania-based “environmental” groups are not exactly merging–but almost. One group is the radical PennFuture, which gave rise to such luminaries as John Quigley (fired as Sec. of the PA Dept. of Environmental Protection), John Hanger (left the state, former DEP Secretary, ran for governor last time, lost, supports legalizing pot), and Cindy Dunn (currently Secretary of Dept. of Conservation and Natural Resources). PennFuture is tax exempt, yet it routinely engages in political activity in violation of its IRS 501(c)(3) status. The other group is Conservation Voters of PA, a 501(c)(4) advocacy organization affiliated with a political action committee (PAC). The two groups are combining certain portions of their operations–“policy, advocacy, and legal resources”–in an attempt to “hold legislators accountable, mobilize voters, and shine a spotlight on candidates’ records on clean air, water and energy issues.” Our view is that their organizations’ membership and donations are dwindling and this is two failing organizations clinging to each other so they don’t slip beneath the waves into oblivion…
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    Climate Radicals Protest in Philly Against Trump’s Cabinet Picks

    Some 200 leftist/radical bought-and-paid-for “protesters” (paid by Big Green groups) “rallied” in downtown Philadelphia yesterday in front of both of PA’s U.S. Senate office (Bob Casey, total jerk and Democrat hack, and Pat Toomey, marginal Republican). They were protesting President-elect Trump’s picks to run the EPA, Dept. of Energy and Dept. of Interior–calling them “climate deniers.” This is part of a national campaign paid for by radical environmental groups, like 350.org and the Sierra Club, groups totally invested in the theory that mankind is causing the earth to catastrophically heat up–even though the temperature record doesn’t back up the theory. Holding silly banners like “NO CLIMATE DENIAL CABINET” they paraded around, collected their paychecks, bought a few dime bags of weed while they were in the ‘hood and generally had a good time. What’s really offensive is that these same idiots demanded that Republicans rubber stamp Obama’s radical cabinet when he assumed office–which stupid Republicans did. These same “protesters” now demand the victor (yes, Trump won) cave to their childish demands. Fortunately Trump is a different kind of Republican and doesn’t back down from a fight…
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    Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?

    Several townships in the Philadelphia orbit appear to be colluding with each other and with the Philadelphia-based Clean Air Council in passing nearly identical resolutions opposing the Mariner East 2 natural gas liquids pipeline. Eight townships or boroughs along or “close to” (meaning not along) the route in Delaware and Chester counties have published resolutions or proclamations badmouthing the project. The municipalities include: Edgmont, West Goshen, Thornbury, Middletown, Westtown, Rose Valley, Swarthmore and Media. Some of the self-incriminating evidence for collusion comes from an admission by one of them: “The community statements are similar to each other because of consultation between their leaders.” And this, from the odious Clean Air Council: “Alex Bomstein, a lawyer with the environmental group Clean Air Council, said that while there are other local campaign such as those in Lebanon and Huntingdon Counties, the efforts in Delaware and Chester Counties are more ‘developed’ in the Philadelphia suburbs. ‘There are more people organizing than elsewhere,’ he said, probably because of a greater population density closer to Philadelphia.” Why would the StateImpact Pennsylvania propagandist quote the CAC in the same article as the colluding towns, unless they were somehow tied together?…
    Read More “Towns Near Philly Collude with CAC to Block Mariner East 2 Pipe?”

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    Radical Democrat PA House Member Tossed to Curb by his Own Party

    Rep Greg Vitali

    Sometimes crazy, wacko environmentalist Democrats in the Pennsylvania legislature are so far left, so crazy, so wacko, it’s even too much for the PA Democrat party. Such is the case with “outspoken” (we’d say loud-mouthed) Rep. Greg Vitali, from the Philadelphia area. We’ve written a number of articles prominently mentioning Rep. Vitali, who wants PA residents to use less natural gas (see PA Rep. Vitali Wants to Force Residents to Use LESS Natgas). However, the wacko Vitali has burned bridges in Harrisburg. He has aggressively crossed swords with PA’s Dem Governor, Tom Wolf, after Wolf understandably fired John Quigley as Secretary of the Dept. of Environmental Protection when Quigley was caught using a private email account to collude with his buddies in the Big Green movement (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Vitali savaged Wolf for not supporting Quigley (see PA Dems Eating Their Own – Turn on Gov. Wolf over Quigley Firing). Since last June, Vitali has continued his infighting and it’s now caught up with him. He arrived in his office in Harrisburg one day to find a computer, and the person who operates it, being reassigned to the the new chairman of the House Environmental Resources and Energy committee–a committee Vitali used to chair. It was the first he’d heard of being tossed to the curb…
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    Court Denies PA Senators Right to Join Lawsuit Against DRBC

    Last May MDN told you about a group of brave landowners in Wayne County, PA who have had their property rights stolen by the Delaware River Basin Commission (see Wayne County, PA Landowner Sues DRBC Over Fracking Ban). They filed a lawsuit against the DRBC asking a judge to declare the DRBC does not have jurisdiction to prevent construction of a natural gas well. Several northeastern PA counties (unfortunately) are located in the Delaware River Basin and the DRBC has steadfastly refused to allow them to drill any shale wells, citing concerns that the Delaware River supplies fresh water to millions downstream–even though they can’t explain how that water might get contaminated. A few months later, the DRBC’s best friend and patron, THE Delaware Riverkeeper, sued to join the lawsuit to help defend the inept DRBC (see Delaware Riverkeeper “Intervenes” to Protect its Patsy – the DRBC). In November, three PA senators filed to join the lawsuit on behalf of the landowners that they represent (see PA Senators File to Join Case Against DRBC Fracking Moratorium). Predictably, THE Delaware Riverkeeper sought to prevent the senators from joining the lawsuit. You see, it’s OK for Riverkeeper to participate as an outsider, but not OK for the Senators to participate to ensure the people they represent get represented in the lawsuit. That’s how it works in the world of enviro radicalism. Unfortunately, the court where the case is being heard sided with the radicals and has ruled the Senators have no right to represent the people they were elected to represent when it comes to a court case…
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    PA DEP Slowing Down Permits to Construct Well Pads & Pipelines

    In 2012, the Pennsylvania Dept. of Environmental Protection (DEP) launched an “expedited” review process for erosion and sediment control general permits that it grants when drillers or pipeline companies plan to push dirt around on more than 5 acres at a time. Which means every pipeline built and every shale well pad constructed. The expedited review process shortened the time to get a permit down to as little as 14 days–provided the paperwork was filled out correctly. The DEP conducted an internal review and found that 59% of the time they didn’t get the paperwork in a form they wanted, so they disqualified those applications. Now the DEP is revising its rules for expedited review, meaning they’re pretty much doing away with it. Welcome back to long delays in getting permits to push dirt around. This action appears to be a response to stinging criticism from the PA legislature that permits, which are supposed to be issued in 14 days, are taking over 100 days–a charge leveled by PA Sen. Camera Bartolotta who is introducing legislation to put a burr under the DEP’s saddle. So the DEP is saying fine, we’ll just change it back to the way it used to be. You can now expect long permit delays from the outset. Your state government at work, serving the people…
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    FERC Grants Permission to Begin Leidy South Construction in PA/VA

    In August of 2016 the Federal Energy Regulatory Commission (FERC) finally granted a certificate to Dominion to build its Leidy South Project, a $210 million to build and/or upgrade six compressor stations along the DTI pipeline system in Pennsylvania, Maryland and Virginia (see FERC OKs 6 Dominion Compressor Station Upgrades in PA, MD, VA). The upgraded compressors would allow DTI to pump an additional 155,000 dekatherms per day of natural gas, providing that gas to new and expanding natgas-fired electric generating plants. But apparently “yes” doesn’t mean “yes you can begin construction.” Earlier this week FERC granted its permission to Dominion to begin actual construction on the compressor stations…
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    High-Priced PA Strippers Go Back to Court, Impact Fee Semantics

    In 2014 we brought you the interesting story of strippers in the Marcellus–stripper wells, that is (see High-Priced Strippers in PA: Semantic Gymnastics with Impact Fee). Synder Brothers is an oil/gas producer in Pennsylvania. Most of the wells they drill are vertical-only wells. Among them are 24 wells from 2011 and 21 wells from 2012 that are vertical only–but all targeting the Marcellus. According to the definition of a stripper well under the Act 13 law passed in 2012, a well qualifies as a stripper well if it doesn’t produce over 90 thousand cubic feet (Mcf) of natural gas per day. Synder Bros. says their wells don’t, ergo their wells are stripper wells and not liable to pay an impact fee. The PA Public Utility Commission (PUC), charged with evaluating what does and does not qualify, says nope–your wells target the Marcellus formation and produced above 90 Mcf for at least one month out of the year, therefore must pay the impact fee. So the PUC sued Snyder Bros., intending to collect $500,000 in unpaid fees PLUS a $50,000 fine for inconveniencing the PUC (see PA PUC Sues Snyder Bros to Collect $500K in Unpaid Impact Fees). Now, more than a year after first hearing the case, PA Commonwealth Court wants to hear it all over again. Can’t enough of those strippers…
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    Marcellus/Utica Drillers Ask for Special Permit to Kill Some Bats

    In April 2015 the Obama administration’s U.S. Fish and Wildlife Service (USFWS) did a disservice to not only the drilling industry, but the wind industry, farmers and the construction industry. USFWS listed the northern long-eared bat as “threatened” under the Endangered Species Act (see US Fish & Wildlife Fixes Wrong Problem for Northern Long-Eared Bat). USFWS says a fungus is spreading through the bat population, killing it. The northern long-eared bat is found in pretty much the eastern two-thirds of the country, minus Florida. The Independent Petroleum Association of America (IPAA) pointed out that USFWS has admitted the the bat is threatened because of something called white nose syndrome–which has nothing to do with habitat destruction. Yet drillers and midstreamers are now hamstrung with new regulations to “save the bats” even though they are not the ones causing harm to the bats. There are other bat species also on the threatened and endangered list, including the Indiana bat, eastern small-footed bat, little brown bat and tri-colored bat. All five species are in decline because of white nose syndrome. Drillers and midstreamers can’t cut down trees from April 1st through October 31st of each year for fear of killing a bat that may be roosting in the tree. This is nuts! Cutting a few trees here and there will not further deplete the bat population–but the thugish USFWS won’t budge. So a coalition of Marcellus/Utica drillers and midstreamers have asked the USFWS to grant them a special permit to allow them to inadvertently kill the odd bat between April and October. USFWS is now conducting a full environmental impact statement, which won’t be ready until next year…
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