Statewide PA

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    Time to Start Prosecuting Towns that Pass Illegal Frack Bans?

    indictmentAs a general rule and principle, local control over decisions that affect an entire community is a good thing. Our great country as founded gives precedence to individual freedom. However, what do you do when two neighbors disagree on an important, community-changing issue? Our founding fathers wrestled with this concept and crafted an ingenious solution. If everyone in a community voted on every issue, the founding fathers recognized such a system descends into mob rule. However, in order to preserve democracy and cherished individual freedom, people should have the right to vote. Instead of voting on every issue, the founders created a system where citizens vote for small groups of representatives who act as a buffer between the “mob” and common sense/fairness for everyone–people who dedicate their time to understanding issues, how their constituents feel about those issues, and then voting in accordance with their own conscience and findings. Such a representative democracy is called a republic, which is the political system we have in the United States (NOT a straight up democracy). Even among the layers of elected representatives (local, state, federal) there is a pecking order. The founders recognized there are certain rights and issues best decided and enforced on either the federal or state level, rather than the local level. Each local community (lets call it a township) does NOT have the right to craft its own constitution and confer rights on individuals, corporations, eco-systems or any other entity. Conferring of such rights is the purview of either the federal or state government–NOT a local government. For example, in every state in the union oil and gas development is regulated by the state–not by local entities. In some states, Pennsylvania among them, zoning can affect and influence oil and gas development–where it happens, when it happens–but not control how it happens. So what if a community decides to ban oil and gas development (or pipelines, or injection wells)–in other words, “whether” such an activity happens? Such a ban is illegal. Introducing zoning regulations that result in a de facto ban is also illegal–but it’s happening in pockets across the Keystone State. Perhaps it’s time to criminally charge local representatives who pass these illegal laws (laws that trample individual property rights guaranteed under the U.S. Constitution) under a PA law called “official oppression.” That’s what the Pennsylvania Independent Oil & Gas Association (PIOGA) is considering right now…
    Read More “Time to Start Prosecuting Towns that Pass Illegal Frack Bans?”

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    Lawyer Breaks Down PA Supreme Court’s Latest Act 13 Ruling

    one-more-timeWe’re not trying to beat a dead horse here with yet more coverage of last week’s PA Supreme Court ruling in yet another Act 13 case (see PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again), but that decision is important enough that it bears viewing from multiple angles. Below is an article from the Saul Ewing law firm. It does a good job of breaking down the key items decided by the judges, and what it means for the drilling industry and for PA residents–in terms non-lawyers (like us!) can understand. The article also points out there is at least one more aspect of the Act 13 case that has yet to be decided…
    Read More “Lawyer Breaks Down PA Supreme Court’s Latest Act 13 Ruling”

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    PIOGA Makes Legal Play to Stop Chapter 78a Regs from Taking Effect

    appealLast Friday the Pennsylvania Independent Oil and Gas Association (PIOGA) filed a letter with the PA Joint House Senate Committee on Documents asking them to NOT publish the Dept. of Environmental Protection’s (DEP) final Chapter 78a Marcellus Drilling regulations, citing last week’s PA Supreme Court ruling on Act 13 as the basis. As MDN previously reported, the DEP plans to publish the final regulations in this week’s Oct. 8 Pennsylvania Bulletin (see PA’s New Article 78a Drilling Regs Go into Effect Oct 8). PIOGA previously sued asking the Commonwealth Court to block the new regulations based on the legal fact that key parts of Act 13, which Chapter 78a is based on, have been “enjoined” that prevent certain Chapter 78a provisions from being adopted in their current form. It kind of gets into the weeds with legal speak, but essentially PIOGA is (a) warning these agencies they should not publish the new regulations, which prevents the regs from going into effect, until the invalid provisions are removed, and (b) further litigating to keep the regulations stopped. Below is an overview of what’s happening, along with the letter sent by PIOGA to the Joint Committee, and a copy of the appeal filed to the Supreme Court…
    Read More “PIOGA Makes Legal Play to Stop Chapter 78a Regs from Taking Effect”

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    PA’s Supreme Court Orders Up the Impossible re Act 13

    cluelessYesterday MDN reported that the Pennsylvania Supreme Court has essentially gutted the rest of the Act 13 drilling law passed in 2012 (see PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again). One of the four provisions in the law eviscerated in the most recently ruling deals with notifications following a spill of chemicals or frack wastewater. The Act 13 law provided for a mechanism (requirement) that local public water drinking systems be notified following a spill. Immediately. But the law did not provide for the same notification to owners of private water wells. Why was that? Was it a sweetheart deal with evil, nasty frackers who don’t care if they poison the water wells of nearby residents–interested only in money? Uh, no. The fact is Pennsylvania is one of the few states that does not regulate private water wells, so there is no registry, no way to know WHO to inform in case of a spill. How can you require a company to do something when there is no way to do it? Which raises this question: Do the Democrats on the Supreme Court who made this decision even understand the issue at all? Are they totally clueless?…
    Read More “PA’s Supreme Court Orders Up the Impossible re Act 13”

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    PA Supreme Court’s Final Evisceration of Act 13 – Big Deal or Not?

    eviscerationFollowing up on yesterday’s Pennsylvania Supreme Court decision to eviscerate the rest of the 2012 Act 13 drilling law (see PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again), there have been a number of articles and reactions to the decision. Most point out that the items struck down by the Supremes in their great wisdom were not really being followed or implemented after earlier court cases questioned Act 13. But some maintain there are aspects of this week’s decision that portend future trouble for the drilling industry, while others say it’s no big deal. Here’s one on each side of the issue…
    Read More “PA Supreme Court’s Final Evisceration of Act 13 – Big Deal or Not?”

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    PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again

    Gavel-falling.jpgThe Democrat-controlled Pennsylvania Supreme Court ruled yesterday in another (hopefully final) decision on the 2012 Act 13 Marcellus drilling law passed and signed by then-Gov. Tom Corbett. Four Democrat judges have just struck down more of Act 13, leaving not much left except the part that raises money and gives it away (called an impact fee, otherwise known as a severance tax). You will recall that seven selfish towns sued the state over the Act 13 law and it’s provision that would substitute a statewide, uniform and fair set of zoning ordinances for drilling in place of a patchwork, crazy quilt system of local ordinances for oil and gas drilling. These seven selfish towns wanted their own ordinances and sued, ultimately winning at the Supreme Court (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The PA Supremes couldn’t, however, be bothered with deciding every tiny bit of nuance and sent some items back to the lower Commonwealth Court for final decisions. Following several cases in the lower courts, some of it came back to the Supreme Court for a final decision, and that just happened. The Supreme’s ruling (full copy of their decision is embedded below) affects the use of eminent domain, what information can be shared by doctors as it relates to privileged trade secrets for drillers, and most importantly, a decision that ends the right of the PA Public Utility Commission (PUC) to keep an eye on the zoning regulations passed by towns, to ensure those regulations don’t supersede state oil and gas regulations. Most of Act 13 is now down the toilet, thanks to four left-wing Democrat judges…
    Read More “PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again”

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    PA Landowners Rally in Harrisburg to Support Royalty Bill

    Pennsylvania State CapitolLandowners from Bradford, Susquehanna, Wyoming and Lycoming counties (Pennsylvania) attended a rally in Harrisburg, at the Capitol, on Tuesday. They were there to lobby for and support passage of House Bill (HB) 1391, a bill that would guarantee landowners a minimum 12.5% royalty payment regardless of post-production costs. We have extensively covered this issue, which is causing a schism between landowners and drillers (see our most recent article: Guest Post: A Possible Solution for the PA Royalty Issue). Affected landowners are extremely mad, and want their legislators in Harrisburg to pass HB 1391. They were there to make the case. Although they had hoped the measure might come up for a vote on Wednesday, the bill’s sponsor, Garth Everett, said it won’t be considered until October when the House is back in session…
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    SEPA Town Votes to Allow Mariner East 2 Across Town Land

    Yes No tickbox with green YES tick
    Yes No tickbox with green YES tick

    MDN has previously highlighted the fight to build the Mariner East 2 pipeline. Town by town, opponents of the pipeline have tried to stop it with zoning regulations. And town by town, those efforts are failing. A prime example is Middletown, PA, in Delaware County (near Philadelphia). The Middletown Town Council voted earlier this month to put an ordinance on the docket for council members to vote on at the Sept. 26 meeting, an ordinance that if passed, will allow Sunoco LP to move forward with building the pipeline on public land in the town–in one case across a park, and in another close to an elementary school (see PA Town’s Angst Over Mariner East 2 Pipeline Near School, Park). Town council members faced heaving criticism and opposition, but in the end they did the right thing. Monday night the Town Council voted to grant permits to Mariner East 2, provided there are certain safeguards…
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    Guest Post: A Possible Solution for the PA Royalty Issue

    ChrisAcker.jpgMDN is pleased to bring you another guest post from our very good friend Chris Acker. Chris is a geological engineer with an MBA. He grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos (see www.PianoGrands.com). A few years ago, it was established that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He leased with Cabot Oil & Gas and has a well sitting off his front porch not more than 200 yards away. Chris is now happily engaged once again in energy economics, with an emphasis, naturally, on gas. Chris is MDN editor Jim Willis’ right arm when it comes to scanning for stories, something Jim is profoundly grateful for. Chris sent Jim a note about the royalty issue, just a couple of paragraphs–and Jim found more wisdom in his few sentences than he has seen to date. So Jim asked Chris for permission to post his pearls of wisdom, and Chris decided to expand it. Below is a very thoughtful, intelligent, useful post on the royalty issue currently causing a schism between landowners and drillers in the Keystone State. We encourage everyone with an interest in this issue to read it. It contains a few new ideas we’ve not heard either side float–ideas that may help us find a way out of the current mess…
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    Penn State’s Marcellus Center Gets New Co-Director

    nyblade
    Andrew Nyblade

    Penn State has given us some of the best research (and personnel) we’ve ever seen when it comes to the Marcellus Shale. In particular we’re thinking of Penn State’s Marcellus Center for Outreach and Research (MCOR). Great people. Super research. One of the co-directors of MCOR, Michael Arthur, is stepping down from his position (no reason stated in the announcement). In his place will be Andrew Nyblade, professor of geosciences. Here’s an updated/fresh look at MCOR and at one of it’s two leaders…
    Read More “Penn State’s Marcellus Center Gets New Co-Director”

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    Status Update for 5 Important Bills Affecting PA Fracking Industry

    update.jpgThe legal beagles at the Norton Rose Fulbright law firm recently issued a post on their Hydraulic Fracking Blog with updates on five important bills currently before the PA House and Senate that will affect the Marcellus industry (drillers, midstreamers and landowners)–with details for what’s in the bills and the status for each bill. Likely the most controversial of the bills is House Bill (HB) 1391, which would guarantee PA landowners a 12.5% minimum royalty regardless of post-production costs. That bill is due for a procedural vote today. Other bills are in bottled up in various committees where they may or may not make it out for a full vote. The PA House is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26, and Nov 14, 15. That’s it–just 10 more days in session before the end of the year. The PA Senate is in session today, tomorrow, and then Oct 17, 18, 19, 24, 25, 26. Just 8 more days for the Senate. So whatever is going to happen must happen quickly. Here’s a rundown on the five important bills, including HB 1391 (“Amendments to Oil and Gas Lease Act”), HB 2275 (“Changes to Environmental Quality Board membership”), HB 2277 (“Amendment to Oil & Gas Act related to bonding requirements”), HB 2319 (“Amendment to Oil & Gas Lease Act”), and HB 2361 (“Pennsylvania Turnpike Right-of-Way Act”)…
    Read More “Status Update for 5 Important Bills Affecting PA Fracking Industry”

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    Guest Post: HB 1391 Will Restore What Bradford Landowners are Owed

    guest postLast Friday MDN ran a guest post from an executive who works for a Pennsylvania exploration and production company (E&P, what we call a “driller” here on MDN). In the post, titled Why PA HB 1391 Bill is Bad for the Marcellus, MDN invited those with an opposing view to send us a guest post on the other side of the issue. A landowner from Bradford County has done just that (read it below). We also include a recent AP article highlighting other landowners in Bradford who have been wronged by Chesapeake Energy (according to the landowners interviewed). With the highest amount of respect to the Bradford landowner writing the guest post, we must point out that in a way his post “makes the case” for the industry’s view as posted last Friday, a case *against* HB 1391. How?…
    Read More “Guest Post: HB 1391 Will Restore What Bradford Landowners are Owed”

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    PennEast Tweaks Pipeline Route in 26 PA, 7 NJ Locations

    penneastContrary to irrational fossil fuel haters and the lies they spread about pipeline companies, those companies do listen and work with local communities and individual landowners to tweak the route of a proposed pipeline in an effort to minimize impacts. Case in point: PennEast Pipeline is a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. It’s being vigorously opposed by anti-drillers including THE Delaware Riverkeeper, the Sierra Clubbers and others. Last Friday PennEast filed 33 changes to the proposed route with the Federal Energy Regulatory Commission (FERC), to accommodate landowners and communities. This is how adults behave, unlike the childish, petulant, spoiled children who run organizations like Riverkeeper and the Sierra Club. PennEast listened, reflected, and changed. The response from the antis? “You can’t build it. CAN’T CAN’T CAN’T CAN’T CAN’T.” There is no reasoning with people who are un-reasonable. Here’s a description of the changes PennEast made to the route through PA and NJ…
    Read More “PennEast Tweaks Pipeline Route in 26 PA, 7 NJ Locations”

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    PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8

    Scott Perry, PA DEP
    Scott Perry, PA DEP

    Some important news came out of a session held last week at the Marcellus Shale Coalition’s Shale Insight event. During one of the sessions, Pennsylvania Dept. of Environmental Protection (DEP) Deputy Secretary of the DEP’s Office of Oil and Gas Management, Scott Perry, said that the very long awaited new Chapter 78a shale drilling rules will go into effect on Oct. 8th. You may recall the last time MDN covered the issue, in August, there was some controversy and question over whether or not the final new rules would get published in the Pennsylvania Bulletin (see New PA Drilling Regs Closer to Reality, Questions Remain). We can now lay that question to rest. On Oct. 8, according to Perry, the rules as they are (no further tweaks) will get published and then, immediately, become law…
    Read More “PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8”

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    Guest Post: Why PA HB 1391 Bill is Bad for the Marcellus

    guest postWe don’t mind telling you that the royalty issue in Pennsylvania, specifically passage of House Bill (HB) 1391 to ensure landowners are guaranteed 12.5% royalty checks regardless of post-production costs, is a thorny issue for MDN. We can see both sides of the issue, but tend to favor the landowner side–slightly. The drilling industry knows that there is no bigger booster for them than MDN. So our periodic coverage and editorializing in favor of 1391 is a bone of contention. Drillers are not happy with your faithful editor. A long-time MDN subscriber and friend who works for a sizable driller in PA recently wrote us an email that (a) lays out the case for not tampering with existing, signed contracts, and (b) gently chides MDN for taking the landowners side in this issue. We asked for and received permission to bring you his email. As we responded to our friend, we are interested in getting this issue settled quickly. It breaks our heart to see allies divided. We all need to be firing at the other side, not within our own ranks. MDN is happy to run guest posts and views on this issue (or any issue). This letter writer does a good job, and makes a compelling case, for NOT passing HB 1391. Does he change your mind on the issue?…
    Read More “Guest Post: Why PA HB 1391 Bill is Bad for the Marcellus”

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    Study: Lower Mortgage Defaults, Higher FICO Scores in PA Marcellus

    trending-down.jpgThe benefits of shale energy are almost too numerous to list. Contrary to the ninny nannies who spit and spout and preen about yelling the sky is falling if we frack one more well–the OPPOSITE is the truth. Shale is GREAT for America, in so many ways. Channeling our inner Donald Trump, “It’s very very great. So great you won’t believe how great it is. You’re gonna love it!” Here’s just one more way shale is great. A researcher from Clemson University (in South Carolina) poured over mortgage data for the state of Pennsylvania. As you know, not all of PA is blessed with being located in the Marcellus Shale–but much of it is. The intrepid Clemson researcher found in reviewing records from 2004 to 2011 that those with mortgages who live in areas where there is Marcellus Shale defaulted on those mortgages 58% LESS than the statewide average. That is, shale means there’s more money to pay bills, a mortgage being one of them. Might we say that the Marcellus can literally save the family farm? Yes, we can say it, and back it up with data! The Clemson researcher also found living in a shale region boosts your FICO credit score…
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