Statewide PA

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    Research Says Converting Marcellus Gas into Methanol is Profitable

    The Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) funded a research study that looks at the potential to convert natural gas to methanol on a small to medium size plant scale. The study, titled “Natural Gas Utilization via Small-Scale Methanol Technologies” (copy below) concludes that yes indeed, such a use for potentially significant quantities of natural gas is feasible. Methanol is the simplest alcohol and is a light, volatile, colorless, and flammable liquid with a distinctive odor. Methanol is produced mainly using a two-step catalytic chemical process. It is an important chemical with a wide range of applications and end-uses. The SGICC’s research shows that methanol is priced similar to oil (i.e. much more profitable than regular natgas) and building plants in remote areas without pipeline infrastructure is relatively fast and effective. What’s not to like?…
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    Two Thumbs Down on John Quigley as Sec of PA DEP

    2 thumbs downYesterday Pennsylvania Gov. Tom Wolf’s pick to head the all-important Dept. of Environmental Protection (DEP), John Quigley, faced a confirmation hearing in the PA Senate. Quigley sparred with Republican Senators who challenged him over his two-year stint at the anti-drilling organization PennFuture. He also assured the Senators that if Gov. Wolf’s insidious severance tax is passed, the “industry’s not going anywhere” he said. In other words, we have them by the short hairs and they have no other options. Au contraire, Mr. Quigley. Au contraire. We’ve made no bones about our disdain for Quigley. He shouldn’t be the next Secretary of the DEP. But we’re under no illusion. He’ll likely get approved. What was interesting, however, is that at the conclusion of the hearing, the Senators on the panel voted to refer Quigley’s appointment to the full Senate–without recommendation. That’s extremely rare. It was a vote of no confidence by the senators, as in “here, we’ll let ya’ll vote on him any which way you want to, we wash our hands of it.” It will be interesting to see how many vote against his confirmation. It’s good to know we’re not a lone voice crying in the wilderness. There is someone else–a very important someone else–who also doesn’t think Quigley should be confirmed. That important someone else is John Peterson, former U.S. Congressman and Executive Director of the Allegheny Forest Alliance…
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    Another Marcellus-Area Trailer Park Sold – For $3.5M

    Seems like every now and again UMH Properties, a New Jersey-based real estate investment company, snaps up yet another trailer park. The company has added a number of them in Pennsylvania (see More Housing for Marcellus/Utica on the Way in Pittsburgh Region; Quirky Friday: What’s the Main Selling Point of Erie, PA Trailer Park?; and UMH Pays $5.3M for 2 Trailer Parks in W PA for Marcellus/Utica). UMH buys these properties specifically because they are located in active Marcellus/Utica drilling areas. Until now, all of the properties they’ve purchased close to shale activity have been located in western PA. UMH has just purchased another trailer park for $3.5 million–this one in northeastern PA…
    Read More “Another Marcellus-Area Trailer Park Sold – For $3.5M”

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    PA Official Admits Wolf Severance Tax Highest in Nation @ 17.3%

    I admit itThe head of Pennsylvania’s so-called Independent Fiscal Office (a partisan organization) testified before a joint hearing of the state Senate’s energy and finance committees yesterday and said (fantastically) non-Pennsylvanians will “eventually” pick up most of the tab for a nosebleed high severance tax proposed by PA Gov. Tom Wolf (Democrat). Matthew Knittel, head of the Independent Fiscal Office, also testified under oath that Wolf’s severance tax will have an initial effective rate of 17.3% in 2016–instantly skyrocketing to become the nation’s highest severance tax…
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    PA Gov Wolf Tax Package (Incl Severance Tax) Voted Down 193-0

    Pennsylvania Gov. Tom Wolf has proposed a slew of new taxes as part of his proposed budget. Yes, there’s a 15% (or according to his own government advisers, 17.3%) severance tax in the package of tax increases Wolf wants. But there are a number of other taxes the PA Democrat governor, who took office in January, wants as well. When you add it all up, its over $12 billion in new economy-crushing taxes. So the Republicans running the PA House held a vote yesterday on the entire package of Wolf’s tax proposals. In other words, do you really want this? Is this the way to go? The vote was taken, and every single House member, all 193 of them–Republicans and Democrats–voted against Wolf’s tax proposals. Wolf called the vote a “stunt” and said, “This is the kind of gamesmanship that we were not sent here to play.” Er, did we miss something? YOU wanted all of these new taxes Gov. Wolf. So when YOUR taxes were voted on–all together in one package–you didn’t want it after all? Did you have a change of heart? Why did you propose those taxes if you didn’t want them voted on? This is the kind of gamesmanship we’ve come to expect from the Democrats in the Keystone State. The kind of political “stunts” they play. When the Democrats’ enormous appetite for taxing and spending is exposed and brought out into the open, they run away…
    Read More “PA Gov Wolf Tax Package (Incl Severance Tax) Voted Down 193-0”

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    Norfolk Southern Responds to PA Gov Wolf’s Letter re Oil Trains

    A few weeks ago Pennsylvania Gov. Tom Wolf sent an open and public letter to CSX Transportation and Norfolk Southern Railway, two major railroads operating in the state, trying to pressure them into accepting the idea that PA may try and slip its own regulations on top of federal regulations with regard to crude oil trains traveling through the state, most of them coming from the North Dakota Bakken Shale region (see PA Gov Wolf Takes Aim at Bakken Oil Trains Traveling Thru PA). Wolf, in his letter, urged both companies “to join Burlington Northern and Santa Fe (BNSF) in adopting improved safety initiatives for all trains with crude-by-rail (CBR) cars operating in Pennsylvania and to fully and expeditiously comply with the U.S. Department of Transportation’s announced Final Rule.” Norfolk Southern has responded with their own open letter back to Wolf (copy embedded below). It’s message? We’re already in compliance with most of the DOT’s Final Rule, and we go over and above the standards in the Final Rule and standards followed by others like BNSF. So put that in your pipe and smoke it Mr. Wolf…
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    Getting Marcellus NatGas to Customers without Pipelines

    NOTE: This post was updated on 7/30/15 per the request of Compass Natural Gas Partners. The updates reflect that Compass does not market to rural communities/end users, but rather to manufacturers, fleets and businesses that are not located near natural gas pipelines. We thank Compass for setting the record straight. – Jim Willis, Editor, MDN

    Wouldn’t it be great if you could sell Pennsylvania’s abundant, clean-burning and cheap Marcellus Shale gas to areas without access to a pipeline or natural gas? Just wave the magic wand and presto-magico gas is delivered to manufacturers, fleets and businesses where no infrastructure now exists. That’s the premise behind a very real company that aims to accomplish that lofty objective. Compass Natural Gas Partners, based in Camp Hill, PA, is building a first of its kind compressed natural gas (CNG) terminal in Lycoming County, PA that will accept Marcellus Shale gas in, clean it up (get rid of the water in it), compress it to 3600 psi, and load it into specially designed trailers that haul it to customers. If this project catches on, it has the power to change how natgas is distributed to locations with no pipelines…
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    Industry-Backed Ad Turning the Tide Against PA Severance Tax

    media biasMust be that new advertisement airing in Pennsylvania warning folks against Gov. Tom Wolf’s Marcellus-killing 15% severance tax is having an effect. How can we tell? Because mainstream media outlets like the ABC affiliate in Harrisburg is manufacturing a false controversy about who’s behind the ads–quoting anti-drillers like Jan Jarrett from the non-transparent partisan group called the Pennsylvania Budget and Policy Center–to distract people from the effectiveness of the ad. Plus, the pro-Democrat Harrisburg Patriot-News doesn’t even bother manufacturing a false controversy–they just outright criticize and ridicule the ad, not even bothering with a veneer of objectivity…
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    PA Drought Conditions Begin to Affect Marcellus Drilling

    Drought conditions now exist over a large part of Pennsylvania, and because of it, we are beginning to see some impacts on Marcellus Shale drilling. The PA Dept. of Environmental Protection (DEP) oversees water management/withdrawals from streams and rivers in the central and western part of the state. The Susquehanna River Basin Commission (SRBC) oversees it in the northeastern part of the state. The DEP has not (yet) issued any restrictions, but the SRBC reports that restrictions previously written into water permits for drillers in the northeast have affected the withdrawals of two drillers: Cabot Oil & Gas (in Susquehanna County) and Seneca Resources (in Tioga County)…
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    Who Ya Gonna Call? PA DEP (Noise) Ghostbusters!

    ghostbustersThe Pennsylvania Dept. of Environmental Protection is wading into an area that’s likely best left to towns and municipalities: regulation of noise coming from Marcellus Shale drilling operations. The DEP wants drillers to craft a site-specific plan for noise mitigation for each and every well pad they drill. Problem is, the DEP won’t give drillers any standards against which to devise their plans. That is, the DEP isn’t willing to say “this loud is too loud at this distance from the drill site.” Drillers are understandably confused. How do you draw up a plan with no standards/no regulations? The DEP says noise is a funny thing–it can carry in one place but not another. They claim you can’t draw up hard and fast guidelines. One noise expert says trying to figure out the source of noise (and how to prevent it) is “sort of chasing ghosts”…
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    Research: Marcellus Frack Wastewater More Radioactive than Thought

    A study published in April reportedly concludes that fracking wastewater may be “more radioactive than researchers previously believed.” The study, titled “Understanding the Radioactive Ingrowth and Decay of Naturally Occurring Radioactive Materials in the Environment: An Analysis of Produced Fluids from the Marcellus Shale” (full copy below) was published in the peer reviewed journal Environmental Health Perspectives. In a nutshell, the study says previous looks at the “you’ll glow in the dark, you’re all getting irradiated” issue has only looked at the presence of radium in frack wastewater. The researchers say that in order to judge the true radioactivity of frack wastewater you need to consider the isotopes that radium and radon breaks down into hours, days, weeks, months and years later–especially in closed tanks. And when you do, the authors say the level of radiation people (and the environment) is exposed to goes much higher that previously thought. Is this the smoking gun? Here’s MDN’s layman’s perspective on this new study…
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    Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force

    Pennsylvania Gov. Tom Wolf has proven, once again, the job he was elected to do is just too big for him. He’s not up to the task. Gov. Wolf has just announced the creation of a “Task Force on Pipeline Infrastructure Development” that will add an additional layer of interference by anti-drilling “environmental organizations” on where pipelines can and (preferably, from their viewpoint) can’t be laid. The Task Force is supposedly an “unprecedented collaboration of stakeholders” from government, drillers, midstreamers, and anti-drillers (euphemistically referred to as environmentalists). A “can’t we all just get along” committee. And this Task Force will “recommend a series of best practices” for where/when/how gathering pipelines will get laid in the Keystone State. John Quigley, acting secretary of the Department of Environmental Protection (DEP) and former staffer at the anti-drilling PennFuture, will serve as chairman of the Task Force. God help us all…
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    WPX Completes $200M Sale to Still-Unnamed Buyer in NE Marcellus

    Earlier this month MDN told you that WPX Energy had sold contracts and contracted capacity to buy and sell natural gas on on Transco’s Northeast Supply Link pipeline for $200 million to an undisclosed buyer (see Mystery Buyer to Pay WPX Energy $200M for NE Marcellus Assets). We told you our best guess for who the buyer likely is: Southwestern Energy, the same company that just completed purchasing WPX’s leases and wells in Susquehanna County in February for $300 million (see WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern). Yesterday WPX issued a press release to say the deal is now done and the money in the bank–but they still don’t/won’t name who the buyer was…
    Read More “WPX Completes $200M Sale to Still-Unnamed Buyer in NE Marcellus”

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    Democrats Admit Wolf’s PA Severance Tax Goes as High as 20%

    A diverse coalition of industry and business groups has come together, led by the Pennsylvania Chamber of Business and Industry, to oppose PA Gov. Tom Wolf’s disastrous idea of a severance tax on the Marcellus Shale industry. The coalition has just launched a very effective television commercial. How do we know it’s effective? The Democrat PR machine (i.e. PBS’s StateImpact Pennsylvania) writes about the commercial and shows a screen shot of the Youtube version of it–but they don’t embed the Youtube version so you can actually watch it . Don’t worry, we embed it below. PBS can’t have anyone actually watch the thing for goodness sake! That might actually sway a few people. Amazingly, we do get an admission from the Democrats at StateImpact that if the price of natgas remains low in PA, Wolf’s severance tax actually zooms up to 20%–not the 5% he claims it is. Looks like somebody at StateImpact didn’t follow instructions to let the governor’s office review the story before it was published. Oh oh…
    Read More “Democrats Admit Wolf’s PA Severance Tax Goes as High as 20%”

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    Pittsburgh Newspaper Calls Out Dela. Riverkeeper over Penn East

    It’s so unusual we have to highlight it. One of two major newspapers in Pittsburgh, the Tribune-Review, has called out THE Delaware Riverkeeper over its opposition to the Penn East Pipeline. The Penn East, if built, will run 114 miles from the Scranton, PA area to the Trenton, NJ area. An editorial in the Tribune-Review last Friday questions the true motivation of THE Delaware Riverkeeper in their opposition to Penn East and tells the group, in so many words, to put up or shut up. Tell us exactly how the pipeline will “damage” the environment–and if you can’t, go away and leave us all in peace to build a pipeline with tremendous economic benefits in both jobs and lower energy costs for consumers…
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    PA Landowners Beware Antis Wanting to “Help You” w/Pipeline Deal

    Landowners in northeast and central Pennsylvania should be wary of (and avoid) a new effort to try and recruit them into a “landowner group” that’s really just an anti-drilling group being formed to fight Williams and their much-needed Atlantic Sunrise Pipeline project. Two anti-drilling kids (or youths, if you prefer) are spearheading the effort. Alex Lotorto is one of them. Alex has been one of the community agitators against the natural gas fired electric generating plant proposed for Jessup, PA (see Serial Protestor Alex Lotorto Seeks New Venue in Jessup). Alex and another twenty-something anti-driller, Allison Petryk (from New Jersey), recently conducted a meeting for unsuspecting landowners at the Tunkhannock Public Library in Wyoming County…
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