Statewide PA

Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Time to Fire John Quigley Following Remarks to Marcellus Investors
March 14, 2016March 14, 2016

John Quigley – Sec. PA DEP

John Quigley should be fired–immediately. He is the Secretary of the Pennsylvania Dept. of Environmental Protection (DEP). Quigley previously worked for the anti-drilling PennFuture organization, an organization that seems to still have a big influence over him. On Friday, March 4, in his role as DEP Secretary, Quigley did intentional, massive damage to the state’s ability to attract new investment to the Marcellus industry. Quigley used calculated, disparaging comments about the industry during a call with Deutsche Bank Markets Research, broadcast to big money investors. He actually intended to, and did, talk down the industry and its prospects in Pennsylvania–meaning many investors decided to write PA off their list of places where they might want to invest. By all accounts, Quigley wants to discourage more investment in his state’s Marcellus industry. Although not criminal, it is unforgivable and he needs to be removed from office–NOW…
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Somber Milestone – US Rig Count Hits Lowest Level in 68 Years
March 14, 2016March 14, 2016

Baker Hughes released their weekly rig count numbers last Friday (see full report below). We typically don’t report on the weekly ups and downs of rig counts, preferring to check in on a monthly basis to get an idea of the overall trend. But last week’s weekly report was historic, which is why we’re commenting on it now. Baker Hughes began tabulating weekly rig counts 68 years ago. The number of working rigs in the United States last Friday hit 480–the lowest number on record since Baker Hughes began keeping records. While the Marcellus count went up by 3 last week, right now there are only 19 rigs operating in Pennsylvania–less than before the Marcellus boom began and down from the high water mark of 114 rigs operating in 2012. When rigs are operating, it means jobs and economic stimulus for a community and region. It also means landowners get royalties, and that money gets invested and/or spent in a community. The converse is also true: no rig activity, fewer jobs and economic impact. Therefore the number of rigs operating is always of keen interest…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA RINO Rep. Kate Harper Trots Out Severance Tax, Again
March 14, 2016March 14, 2016

What is it about elected “Republicans” in the Philadelphia orbit? Seems to us most of them are Republicans in Name Only (RINOs). One such elected RINO, PA House of Representatives member Kate Harper, R-61, is once again floating a severance tax plan. Her 3.5% tax plan sounds better (on the surface) than Democrat Gov. Tom Wolf’s 6.5% plan–except she also wants to keep the impact fee and not allow that fee to be deducted from the 3.5% tax she wants to raise for the teachers’ unions. At least Wolf allows impact fees to be deducted from his plan. The point is, Harper is completely bonkers. Out of her mind. Read today’s companion story about rig counts and how PA has been decimated. And she wants to slap a tax on production?…
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Energy Services | Ethane | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco LP Takes a Bow for Mariner East 1, Looks Ahead to ME2
March 11, 2016March 11, 2016

Sunoco Logistics Partners issued an update yesterday to discuss the success they’re having with the Mariner East 1 pipeline–and to talk about what’s coming for the Mariner East 2 pipeline. Mariner East 1 began carrying propane in December 2014. Ethane shipments went online just last month, and the very first shipload of exported ethane left port two days ago (see Bon Voyage! First Ethane Export Ship Leaves Marcus Hook in Philly). The Mariner East 2 pipeline is on track to be completed by mid-2017, which will bring online another 275,000 barrels per day of natural gas liquids shipping capacity from western PA and eastern OH. What’s funny is that Sunoco got a bunch of politicians to say nice things about the Mariner East project. Why is that funny? Because two of them–PA Gov. Tom Wolf and US Senator Robert Casey (both Democrats)–hate pipelines and hate fossil fuels! But they said nice things about Sunoco and Mariner East likely as a future chit to raise money from Sunoco for their campaigns. Hypocrites…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Auditor General Commits to Half-an-Audit of Shale Impact Fee $
March 11, 2016March 11, 2016

Coming soon to a Pennsylvania township near you: the jackbooted thugs from the office of the PA Auditor General, Eugene DePasquale. You may recall that since he assumed office, DePasquale has had a chip on his shoulder when it comes to the Marcellus Shale (see Newly Elected PA Auditor General Targets DEP First Day on Job). He put together a sham report on the DEP, calling attention to “problems” fixed years earlier, before he assumed office (see DEP to DePasquale: Problems Fixed Years Ago, Where Have You Been?). He couldn’t discredit the Marcellus industry via the DEP, so recently he started on a new track–the millions of dollars raised in a severance tax-like fee called the impact fee (see PA Auditor General to Investigate “Lost” $30M Marcellus Impact Fee). On Thursday DePasquale announced he will conduct a thorough anal exam, er, a, audit of all Act 13 impact fee money distributed to towns and municipalities. Just to be sure they aren’t blowing it on trips and new cars, but actually spending it as intended under the law. Ah, Mr. Auditor General sir? Some 60% of the impact fee revenue raised goes to local towns and municipalities where drilling occurs. The other 40% goes into the black hole of politicians’ sticky fingers in Harrisburg. Are you also going to audit the 40% that stays in Harrisburg and gets redistributed as political favors? If he doesn’t also audit the 40%, we’d call his audit “half-an-audit”…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Dela. Riverkeeper Sues FERC Again – Over Leidy Pipeline Expansion
March 11, 2016March 11, 2016

It’s another week, so it must be time for another lawsuit from THE Delaware Riverkeeper against the Federal Energy Regulatory Commission (FERC). Literally. Last week THE Delaware Riverkeeper, aka Maya van Rossum, filed a lawsuit against FERC to try and shut the agency down (see THE Delaware Riverkeeper Sues FERC, Tries to Close it Down). Not trusting their frivolous lawsuit will actually go anywhere, this week Riverkeeper filed another lawsuit (in a string of many)–this one aimed at making FERC reverse a decision to allow an expansion of Transcontinental Gas Pipeline Co.’s (Transco’s) Leidy Southeast pipeline. A year ago Riverkeeper filed a lawsuit against the same project in an attempt to stop tree clearing–a tactic that ultimately failed (see Dela. Riverkeeper Loses Bid to Stop Transco Expansion in PA). When will a judge slap Riverkeeper with a fine for its continued practice of filing frivolous lawsuits? Here’s the latest…
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Housing | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA

Trailer Park Company Credits Marcellus/Utica for Record Profits
March 11, 2016March 11, 2016

A company we’ve written about for the past few years is UMH Properties–a real estate company that keeps snapping up trailer parks in the Marcellus/Utica region (see our UMH Properties stories here). UMH is a public company with shares of stock. Therefore, it files quarterly and annual reports, and hosts analyst conference calls. MDN picked through the latest from UMH to find some interesting quotes. In essence, UMH still loves the Marcellus/Utica and will continue to look for new acquisitions in our neck of the woods. The company made $14 million last year (in the black). So you see, not everyone in the Marcellus/Utica is going through tough times. Here’s a few select quotes from the annual report and from the UMH earnings phone call with analysts…
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Energy Services | Ethane | Exporting | Industrywide Issues | Pennsylvania | Statewide PA | Sunoco Logistics

Bon Voyage! First Ethane Export Ship Leaves Marcus Hook in Philly
March 10, 2016March 10, 2016

An Ineos tanker ship carrying 173,000 barrels of Marcellus ethane set sail yesterday from the Marcus Hook terminal near Philadelphia. On Feb. 24 we brought you the story that the ship would set sail “within a week” (see Marcellus Ethane Export Sets Sail “Within a Week” from Philly). One week turned into two weeks–perhaps that’s to be expected. But finally! Our Marcellus ethane is now on the high seas heading for Norway…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts for World, US & Marcellus/Utica Crash in February
March 8, 2016March 8, 2016

Just when you thought the rig count couldn’t possibly get any worse–it does. Baker Hughes released their average rig count data for February yesterday–and it’s not a pretty picture. Worldwide the total number of active rigs in February was 1,018, down 27 from the 1,045 counted in January. But in the U.S., the rig count was 532, down 122 from the 654 counted in January 2016. That’s a huge 19% in a single month. The Marcellus/Utica region was similarly affected. It used to be when rig counts were crashing everywhere else, they held firm or slightly declined in the northeast. No more. In February the Marcellus/Utica lost another 10 rigs, from 52 in January to 42 in February–or a 19% decrease in a single month. Ouch. Below are the full details and charts that tell the story…
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Industrywide Issues | Litigation | Pennsylvania | Statewide PA

PEDF Argues Before PA Supreme Court to End Drilling on Public Land
March 8, 2016March 8, 2016

Over a year ago in a crushing blow to the litigious anti-drilling group Pennsylvania Environmental Defense Foundation (PEDF), the PA Commonwealth Court ruled against the PEDF’s lawsuit that attempts to stop all drilling and leasing of state-owned lands for oil and gas drilling (see PA Court Rules to Allow More Leasing/Drilling of State-Owned Land). The court said a) such drilling is just fine and b) the decision of whether or not to allow drilling on state-owned lands (and which parcels) rests with the Department of Conservation and Natural Resources. The court further said that the General Assembly can decide how the monies received from leasing and production royalties will be spent–even as part of the general budget. The problem with the decision is how the court arrived at it (see Troubling Win in PA Court Victory that Allows State Land Drilling). It’s taken more than a year, but the PEDF appealed the lost case to PA’s Supreme Court and tomorrow the PEDF will argue before the high court that the state’s constitution is really meaningless and should be disregarded. Radical environmental organizations have filed a “friend of the court” brief in support of the PEDF. The radicals joining PEDF are the nutty Sierra Clubbers, THE Delaware Riverkeeper, PennFuture (the organization that spawned current DEP Secretary John Quigley), and the Pennsylvania Land Trust Association…
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About MDN | Industrywide Issues | Maryland | New York | Ohio | Pennsylvania | Research | Statewide MD | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

5 Key Insights from MDN’s 2015 Databook Vol. 3 – Just Released
March 7, 2016March 18, 2016

MDN recently published Volume 3 of the 2015 Marcellus and Utica Shale Databook. In 103 jam-packed pages you will get the latest information on what’s happening (or not happening) with drilling in the Marcellus/Utica region. Much of the Databook is a series of county maps–one map for each county where there’s permit activity for Marcellus or Utica drilling. Each county map shows a dot for where a permit was issued–along with the name of the driller next to it. The maps also show major natural gas pipelines and compressor stations. Each map offers you a quick, visual way of understanding where drilling is happening, and who’s doing the drilling.

For this new edition, MDN editor Jim Willis spent several weeks compiling and completely revising a directory of frack waste facilities, including the addition of hundreds of injection wells. The 3-volume series is just $350 (single volumes are $225). All three volumes are meant to work together. This is the PERFECT resource for drillers, pipeline companies, law firms, landmen and many others. Below we’ve included sample pages along with 5 key insights from this latest edition of the Databook…
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Pennsylvania | Statewide PA

“Dramatic” Scale Back in Marcellus/Utica Drilling – Rigs Idled
March 7, 2016March 7, 2016

Over the past several weeks we’ve seen a flurry of quarterly updates for Marcellus and Utica Shale drillers. While the news hasn’t been all bad, a lot of it has been bad–and a lot of the news is about how these companies are spending less to drill in 2016 than they did in 2015. We’ve also seen the continuing downward trend in the number of active drilling rigs–both here in the northeast and across the country. All of that combines to a “dramatic” scale back for drillers in the Marcellus/Utica, according to a Sunday article in the Pittsburgh Tribune-Review. In fact, some of what had been (until recently) the biggest drillers in our region have zero rigs operating right now. Which ones?…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP On Course to Jam New Regulations Down Drillers’ Throats
March 4, 2016March 4, 2016

In January, MDN told you that the Pennsylvania Dept. of Environmental Protection (DEP) finally pushed out new drilling regulations, required under the 2012 Act 13 law (see PA DEP Issues “Final” New Drilling Regulations; Industry Pushback). The new regulations were already done and ready to be adopted–and then radical leftist Tom Wolf took office and decided to put his own environmentalist fingerprints all over the regulations–ruining them. The industry is pushing back. Not at stricter controls here and there, but against superfluous and stupid requirements that cost a lot of money but don’t make the environment (or people) safer. Last month we told you that the DEP continue to keep secret some of the parts of the new regulations (see PA DEP Sec. Quigley Keeps Secret Key Part of New Drilling Regs). That’s shifty. Sneaky. Sleazy. So what’s the status? During an education presentation last week in Murrysville (Westmoreland County), PA, DEP deputy secretary for oil and gas management, Scott Perry, said the DEP will push through the new regulations as written. In other words, open wide drillers, here it comes…
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Industrywide Issues | Jobs | Pennsylvania | Regulation | Statewide PA

PA Gov. Wolf Refuses to Let DEP Hire People–When Money is There
March 2, 2016March 2, 2016

Yesterday Pennsylvania Dept. of Environmental Protection (DEP) Secretary John Quigley was grilled by PA lawmakers as to why his department continues to be understaffed–when there’s money earmarked to hire new people. Quigley’s roundabout answer? His boss, Gov. Tom Wolf, won’t let him hire anyone new, using the excuse that last year’s budget is not finalized. The radically partisan Wolf continues to use the budget as a political weapon against Republicans. But here’s the thing–the money to hire new DEP personnel is already there, raised from fees assessed on drillers or transferred from the federal government. The money required for hiring many of the new people for the DEP isn’t part of the general fund. Yet Wolf won’t let Quigley hire, sleazily trying to spin it as a “Republicans won’t pass the budget” excuse. Shame on Wolf for lying about what he’s doing. Quigley was on the hot seat yesterday, and Republican legislators didn’t hold back, telling Quigley to quit whining and to start owning his own mess…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

PA Landowners Ask Judge to Intervene in Chesapeake Royalty Case
March 1, 2016March 1, 2016

In March 2015 MDN reported on the “Demchak” royalty case in which a group of Pennsylvania landowners had agreed to a settlement with Chesapeake over Chessy’s alleged shorting of royalty payments (see Chesapeake’s PA Royalty Settlement Affects Some, Not All Landowners). As we reported at the time, “several thousand” landowners (we now know the number is 9,000 landowners) would share two-thirds of the $11 million settlement (the other one-third going to the lawyers), which doesn’t seem all that great a deal to us. Toward the end of last year the issue got heated again as many landowners were faced with a decision of whether or not to opt out of the settlement (see Packed Meeting in Towanda Discusses Chesapeake Royalty Settlement). Then the whole thing came to a screeching half with a new lawsuit by PA Attorney General Kathleen Kane. Her lawsuit stopped the settlement from proceeding (see PA AG’s Lawsuit Derails Demchak/Chesapeake Royalty Settlement). Afraid that Chesapeake will file for bankruptcy protection (not related to this case), landowners in the Demchak case are asking a federal judge to appoint a mediator and finish the deal–so at least they will get pennies on the dollar instead of nothing at all…
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Atlas Energy | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Atlas Energy Issues 2015 Update + More Details on Company Layoffs
February 26, 2016February 26, 2016

Yesterday Atlas Energy issued its fourth quarter and full year 2015 update. Atlas, as we’ve pointed out in the past, has sold most of its Marcellus assets in two huge deals: a $4.3 billion deal with Chevron in 2011 and in a $7.7 billion deal with Targa Resources in 2014. Atlas operates mostly conventional (some unconventional) oil and gas wells in a number of states: New York, Pennsylvania, Ohio, West Virginia, Virginia, Tennessee, Indiana, Alabama, Colorado, Oklahoma, Texas and New Mexico. Sizable company. Recently, as MDN has exclusively reported, the company laid off a number of its employees (see Atlas Energy Update – 125 Layoffs Companywide). We’ve since learned, from a highly placed source with knowledge of the layoffs, that the number of companywide layoffs is closer to 150–approximately 20% of the Atlas workforce. There’s no mention of that in yesterday’s update. So what does the update show? Atlas lost $240 million in 2015–but if you back out the paper losses of impairments and depreciation, the company actually made money. In the update Atlas mentions they shut in their prolific Marcellus wells in Lycoming County, PA during 4Q15 due to low prices. Below is the Atlas update, and more details about how many Atlas employees were laid off–and where…
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