Statewide PA

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    More on Wolf/Quigley 4-Point Plan to Reduce Methane Emissions

    In January Pennsylvania Gov. Tom Wolf announced a 4-point plan to supposedly reduce the amount of methane leaking from various oil and gas related activities–like drilling, compressor stations, etc. (see PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs). A few days later Wolf’s Secretary for the Dept. of Environmental Protection (DEP), John Quigley, further expounded on this manifestly poor idea (see Quigley Expounds on Methane Emissions Plan: Drillers to Get Hosed). The concern is that methane is a so-called greenhouse gas and that “fugitive” methane escapes into the atmosphere and will toast ole Mom Earth. Dumb as rocks–but there it is. To prevent old Mom Earth from toasting, Wolf and Quigley’s answer is the same as every liberal Democrat’s answer: more regulation. Last week the DEP revealed a little bit more about where they’re going with this…
    Read More “More on Wolf/Quigley 4-Point Plan to Reduce Methane Emissions”

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    “Independent” Fiscal Office Says PA Impact Fee Revenue Drops 17%

    ifo logoThe Pennsylvania Public Utility Commission (PUC) is the organization charged with assessing and collecting the state’s impact fee on Marcellus drillers–PA’s equivalent of a severance tax. But that doesn’t stop the the extremely partisan, Democrat-controlled, so-called “Independent” Fiscal Office, or IFO from trying to steal the PUC’s thunder when it comes to announcing revenue from the impact fee. Each year the Dems at the IFO release their estimates for how much revenue will be collected for the impact fee months ahead of the PUC. The IFO doesn’t disappoint this year. Yesterday the IFO released their estimates for the fees to be collected from 2015 drilling (full report below), and the IFO estimates revenues will go down by $38 million over 2014 revenue–to $185.5 million. That’s a 17% decrease, even though the number of wells drilled in 2015 versus 2014 went down 43%. And that’s IF the IFO’s numbers are accurate, which is questionable given their extreme bias…
    Read More ““Independent” Fiscal Office Says PA Impact Fee Revenue Drops 17%”

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    PA’s 2015 Production Numbers Show Slight Gain, 4.18 Tcf for Year

    There were 653 more producing shale gas wells at the end of 2015 than there were at the end of 2014 in Pennsylvania. By year end 2015, some 6,618 producing wells were online and pumping. However, because the pace of drilling slowed down (older wells don’t produce as much as newer wells), and because drillers began “shutting in” some wells, overall production in PA from shale wells increased a minuscule 2.7% in 2015 over the year before. Still, overall production in PA was extremely impressive: 4.18 trillion cubic feet for the year. The top five producers remained the same in 2015 as 2014, but top producing counties shifted a bit…
    Read More “PA’s 2015 Production Numbers Show Slight Gain, 4.18 Tcf for Year”

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    PA Newspaper Claims 25 House Repubicans Want Severance Tax

    The unofficial campaign staffer for PA Gov. Tom Wolf working at the Democrat-controlled Harrisburg Patriot-News is Candy Woodall. She calls herself a reporter but in reality she’s a propagandist. Woodall loves to bash the Marcellus industry. Her latest creative writing efforts (otherwise called “reporting”) is to say, essentially, “PA elected Republicans want a severance tax after all–they really wanted it last year, but they voted it down because they didn’t want higher income taxes. They really want to pass a tax on the Marcellus industry this year.” This is pure fiction/fantasy. Woodall claims there are 25 elected Republicans in the PA House who are ready to sign on to a severance tax proposal–yet she doesn’t list their names. Her main source appears to be Wolf’s policy secretary, John Hanger, who ran for governor on a platform of legalizing marijuana. In her latest fiction, Woodall and Hanger savage a truly great Pennsylvanian, House Speaker Mike Turzai, because of Turzai’s steadfast opposition to a tax that would assassinate the Marcellus industry. Woodall implies Turzai is in the pocket of the industry. Hey Candy–did you investigate whether pot growers donated money to Hanger’s campaign the way you “investigated” Marcellus drillers donating money to Turzai’s campaign? No, we didn’t think so…
    Read More “PA Newspaper Claims 25 House Repubicans Want Severance Tax”

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    PA Senate Democrat Candidates Want to Ban ALL Fracking

    Pay attention Pennsylvania voters. You didn’t listen to MDN the last time and elected the disastrous Tom Wolf as your governor–a decision you no doubt kick yourselves for each day. Yes, we told you so. Now listen up–you are facing a U.S. Senate race this November. Sitting Senator Pat Toomey (Republican) is in a tough race to retain his seat. There are (so far) three Democrats running in a primary to oppose Toomey. Two of the three candidates support an immediate ban on fracking–across the state. Everywhere. Both public AND private land (your land!). You CANNOT afford to elect Democrats who want to deny you your Constitutional property rights! PLEASE do not vote for these two extremists who want to ban fracking…
    Read More “PA Senate Democrat Candidates Want to Ban ALL Fracking”

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    PA Lawmaker Wants Turnpike to Allow Pipelines, Charge Ongoing Fee

    A RINO member of the Pennsylvania House (from the Philadelphia area) has introduced a new bill that he believes is totally brilliant. Rep. Scott Petri, R-Richboro, introduced a bill to give the PA turnpike commission authority to allow use of its right of way for natural gas pipelines–and charge a fee for it (of course). Rep. Petri, you may recall, LOVES severance taxes (see PA Republicans Commit Adultery with Severance Tax – Again). But a severance tax would generate small potatoes compared with a “fee” assessed on gas flowing through pipelines. Instead of calling his proposal to allow pipelines along turnpike corridors a tax, Petri calls it a fee. Same thing. He’s proposing that the turnpike commission (i.e. the State of Pennsylvania) should all natgas pipelines and receive an ongoing fee for the amount of gas flowing through the pipeline. When NOBODY rushes to sign up for such a plan (should it ever pass), the next step would be to force pipeline companies to use said corridors–banning pipelines from being built on private property. That’s our prediction…
    Read More “PA Lawmaker Wants Turnpike to Allow Pipelines, Charge Ongoing Fee”

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    FTS International Lays off PA Workers – Won’t Say How Many

    More job causalities from the slowdown in Marcellus/Utica drilling to report. FTS International, the largest private well-completion company in North America with offices and employees in the Marcellus/Utica, has laid off workers. But they’re not saying how many. There were reports FTS had closed their offices in Eighty Four and Venetia–but FTS says that’s not true. Here’s what’s known (which isn’t much)…
    Read More “FTS International Lays off PA Workers – Won’t Say How Many”

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    Philly Judge Says Case Against Mariner East 2 Can Proceed

    A Philadelphia judge for the Court of Common Pleas (low-level court in PA) has ruled in favor of the anti-drilling Clean Air Council against Sunoco Logistics Partners and their Mariner East 2 pipeline. The ruling is nothing more than “this case has merits” (in the eyes of the judge) and can proceed. The case itself is challenging the right of Mariner East 2 to use eminent domain against landowners in building the new pipeline. The Clean Air Council’s argument is that since most of the natural gas liquids that will flow through the pipeline will get exported or otherwise not used in PA itself, that moves Mariner East from being a public utility with eminent domain power to an interstate pipeline more properly reviewed and permitted by federal authorities. It’s a delay tactic, because if Mariner East 2 were to come under the aegis of the Federal Energy Regulatory Commission and eventually permitted, they would also be entitled to use eminent domain. But a FERC review would take years. Which is what the Clean Air Council wants. Here’s the latest minor setback for Sunoco, whose eminent domain has been upheld in other PA courts and who is beginning to clear trees for the Mariner East 2 pipeline right now…
    Read More “Philly Judge Says Case Against Mariner East 2 Can Proceed”

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    More on Wolf’s New 6.5% Severance Tax – What Could of Been

    A quick update on the new, higher severance tax being proposed by Pennsylvania Gov. Tom Wolf in his second budget (the first budget never passed and the state has survived on continuing budget resolutions). We reported yesterday that the new 6.5% severance tax would be “on top of” the existing impact fee. That may have left a wrong impression. Yes, the impact fee, which is already high, would remain. But drillers would be able to deduct the impact fee from the 6.5% severance tax, lowering the severance tax for them. It still works out to a 6.5% rate–ON TOP OF corporate income taxes these companies pay. Meaning Wolf’s new severance tax would be one of the highest in the country, if you include corporate income taxes paid by drillers (income taxes that don’t exist in other oil & gas states). In addition to more comment on Wolf’s proposed severance tax, we also have some inside scuttlebutt about the severance tax and what could have been had Wolf not blown it last year…
    Read More “More on Wolf’s New 6.5% Severance Tax – What Could of Been”

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    Wolf Vows to Push Forward with Clean Power Plan in PA

    Are there any doubts remaining that Pennsylvania Gov. Tom Wolf is anti-fossil fuel? He’s trying to tax the Marcellus gas industry out of existence (see Wolf’s Demented 2nd Budget: Tax PA Marcellus 6.5% Instead of 5%). He’s now trying to regulate the coal industry in PA out of existence. Yesterday we brought you the great news that the U.S. Supreme Court has stayed the execution of coal by stopping–for now–implementation of President Obama’s draconian and misnamed Clean Power Plan (see Supreme Court Shocker – Justices Halt Obama’s Clean Power Plan). That means a decision on whether or not the plan can proceed will come from the courts no earlier than 2017. So what does Tom Wolf say? PA is going to go ahead and put a bullet in the head of coal (and to some degree natural gas) by moving forward with its own implementation of the Clean Power Plan. Arrogance personified…
    Read More “Wolf Vows to Push Forward with Clean Power Plan in PA”

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    Wolf’s Demented 2nd Budget: Tax PA Marcellus 6.5% Instead of 5%

    straight jacketSomeone needs to bring out a straight jacket for PA Gov. Tom Wolf. He’s gone stark…raving…mad. He’s not only a danger to himself, he’s a danger to all of Pennsylvania. The only thing missing from yesterday’s budget address in Harrisburg was frothing at the mouth. In his mean-spirited budget address, Wolf insulted nearly everyone present–blaming everyone but himself for the budget disaster of last year. Wolf is either bipolar (off his meds) or just plain nuts. How else can you explain that after not passing his first budget because he demanded a 5% severance tax on drilling (which was really closer to 15%, see Pittsburgh Economic Leader Says Wolf Severance Tax Really 15% Rate), in the worst oil and gas downturn in 30 years, he’s just proposed a second budget with a 6.5% severance tax? It’s sheer madness…
    Read More “Wolf’s Demented 2nd Budget: Tax PA Marcellus 6.5% Instead of 5%”

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    EIA Feb DPR: Utica NatGas Output Continues to Increase

    Earlier this week our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The February 2016 report shows what the EIA predicts oil and natural gas production will be in March from the seven largest commercial shale plays in the U.S. What does the report (full copy below) show? Very broadly, it shows that the decline in natural gas production is picking up speed, while the decline in oil slowed (reversed, actually). In January’s report, the EIA said for February the combined output of natgas would decline by 405 million cubic feet per day (MMcf/d). In this report, forecasting March production, the EIA says the decline will go down another 451 MMcf/d over the February number. That is, the rate of decline is increasing. There’s only one shale play of the seven with an increase in natgas output from the previous month. Can you guess which one? That’s right–the Utica…
    Read More “EIA Feb DPR: Utica NatGas Output Continues to Increase”

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    PA Rig Count Hits 9-Year Low Last Week

    Two days ago MDN briefed you on the latest rig counts–worldwide, U.S. and for the Marcellus/Utica (see Rig Counts for World, US & Marcellus/Utica Continue to Tumble). What we didn’t note in that article is last week Baker Hughes showed the number of active rigs in Pennsylvania had fallen to 19. Eeeks! That is the lowest number of active rigs working in PA since before the Marcellus Shale revolution got underway in 2007. How much lower will it go?…
    Read More “PA Rig Count Hits 9-Year Low Last Week”

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    Philly Council President Says Green Jobs Plan to Create 10K Jobs

    Philadelphia City Council President Darrell Clarke was one of the chief opponents of a deal that would have sold the city-owned Philadelphia Gas Works (PGW) to Connecticut utility company UIL for $1.86 billion. Clarke, more than anyone, torpedoed the deal (see UIL Makes it Official: $1.86B Deal to Buy Phila. Gas Works is Dead). Clarke is, in our opinion, corrupt and in the pockets of unions and others who benefited from that deal falling through. So it was with some amusement we noticed that Clarke announced on Monday that somehow, somewhere, he’s going to magically put his hands on $1 billion to “invest” in a “green jobs” boondoggle that will, supposedly, create 10,000 jobs over the next 10 years. This would be fall-off-your-seat funny if it weren’t so sad and angering. The city could have had a legitimate infusion of non-taxpayer money–$1.86 billion to be exact–but instead has chosen to continue its corrupt ways of using taxpayer money to line the pockets of political supporters…
    Read More “Philly Council President Says Green Jobs Plan to Create 10K Jobs”

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    PA Republicans Commit Adultery with Severance Tax – Again

    What is it with Republicans in Pennsylvania? They’ve just won a major victory by not putting a bullet in the head of the Marcellus Shale industry, i.e. by not implementing Gov. Tom Wolf’s horrible idea of a severance tax. Major victory. But then they return to a severance tax like a cheating spouse who is serially unfaithful. Some Pennsylvania “Republicans” in the state legislature are once again committing adultery with a Marcellus-killing severance tax plan–the day before Wolf re-introduces such a losing plan for a second year in a row. The PA House Environmental Resources and Energy Committee held an informational meeting yesterday to consider two Republican-backed severance tax bills. One bill is being floated by Rep. Kate Harper, RINO-Montgomery County, the other by Rep. Scott Petri, RINO-Bucks County. Notice both RINOs are from the Philly vicinity, which is where most of the nonsense typically comes from. Even House Majority Leader David Reed, R-Indiana County, seems to be going squishy. His mouthpiece said, “It’s just prudent to kind of go through these bills and see what they do.” We disagree. The chairman of the House Environmental Resources and Energy Committee, Rep. John Maher, RINO-Allegheny County, is a sellout too, saying: “I think that there are many people who are open to the idea of a properly crafted severance tax.” With “Republicans” like these, who needs Democrats?…
    Read More “PA Republicans Commit Adultery with Severance Tax – Again”

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    Rig Counts for World, US & Marcellus/Utica Continue to Tumble

    Shell Gas Drilling Rig Used in Tioga County, PAThe number of active drilling rigs worldwide, in North America and in the Marcellus/Utica continued to tumble in January. Baker Hughes released their average rig count data for January last Friday. The news, as we expected (but nevertheless hoped wouldn’t be the case) was not good. Worldwide the number of active oil and gas rigs fell by 78. In North America the rig count went down by 28 rigs, but that’s not the full story. Rig counts in the United States fell by a whopping 60 while the rig count in Canada went up by 32. So here at home the story was bloodier than the top level numbers indicate. What about in the Marcellus/Utica? Once again MDN brings you the exclusive chart for Marcellus/Utica rig counts over the past 12 months. Region-wide rigs went down another by seven in the Marcellus/Utica. All three states that we track–PA, OH, WV–had rig count losses in January…
    Read More “Rig Counts for World, US & Marcellus/Utica Continue to Tumble”