Statewide PA

Crime | Industrywide Issues | Pennsylvania | Research | Statewide PA

Report: Effects of Marcellus Shale Dev on Criminal Justice System
March 30, 2015March 30, 2015

The Center for Rural Pennsylvania (CRP), a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly, continues to pump out the reports on the Marcellus Shale and its impacts on the state at a prodigious rate. They issued the third report in a series in January, another in February, and a third in March (see New Report: Housing and Marcellus Shale Development in PA). The reports each focus on a single topic and how the Marcellus Shale industry in the state is affecting (or not) that particular constituency. The newest/fourth this year (sixth in the series) study from the CRP is titled “Effects of Marcellus Shale Development on the Criminal Justice System” (full copy below). MDN friend Tom Shepstone of NaturalGasNow.org describes the report this way: “Once again, the narrative is an equivocal document apparently intended to give any reader something they’ll like. The data, however, is extensive, there is none of the unprofessional focus group commentary that has characterized some previous reports in this series and there are actual comparisons between Marcellus and non-Marcellus counties that allow for more useful analysis. What’s most interesting about the report is that it completely voids most of the fractivist junk science and junk journalism we’ve seen on the subject of shale crime.”…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Fireworks at First PA DEP Conventional O&G Board Meeting
March 27, 2015March 27, 2015

Well well. It seems by giving out the consolation prize of putting PIOGA (the Pennsylvania Independent Oil & Gas Association) and other industry reps on the PA Dept. of Environmental Protection’s newly created conventional board isn’t working out quite as well as expected for Acting DEP Sec. John Quigley (see PA Marcellus Industry Consolation Prize: DEP Conventional Board). While PIOGA and other industry associations were denied a seat on the arguably more powerful Oil & Gas Technical Advisory Board (TAB), they were given a seat (and a voice) on the Conventional Oil and Gas Advisory Committee (COGAC)–a rule-making board that covers traditional, vertical-only drilling. At the inaugural meeting of COGAC, yesterday, there were fireworks from PIOGA and others…
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Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

2015 Northeast Oil & Gas Awards: A Quick Recap & List of Winners
March 27, 2015March 27, 2015

This is a shout out to the marvelous people we (meaning me, Jim Willis) met in Pittsburgh on Wednesday at the 3rd Annual Oil & Gas Awards. I was truly humbled and thrilled to meet so many MDN readers! You gave me some great feedback on MDN–feedback that has me thinking about some new initiatives going forward. So stay tuned for the future and what I believe will be some good things coming. During the day I was privileged to host two panel discussions. A special thank you to the panelists on the “Minimizing Environmental Impact” panel: Melissa Hamsher, Vice President at Eclipse Resources; Lauren Parker, Principal at Civil & Environmental Consultants; and Gregg Stewart, Permitting Manager with PennEnergy Resources. And a special thank you to the panelists on the “Health and Safety” panel: Charlie Dixon, Safety and Workforce Director with Ohio Oil and Gas Energy Education Program; Frank Harrison, President of Areion Energy; and Chad McCutcheon, Communications Professional with McCutcheon Enterprises. Stellar panelists all! They made me look good, and that’s a hard thing to do. 😉 There were about 150 attendees at the Industry Summit during the day. MDN will bring you videos (when they become available) for each of the sessions. The evening was the “main” event–a gala awards ceremony with folks decked out in tuxedos and evening gowns. We have the complete list of winners for the 2015 Northeast Oil and Gas Awards below…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Obi-Wan Quigley: These are Not the TAB Droids You’re Looking For
March 26, 2015March 26, 2015

Pennsylvania’s Acting Dept. of Environmental Protection (DEP) Secretary, John Quigley, continues to come under fire from PA Republican legislators over his (so far) less-than-transparent operation of the department–especially over firing the former Oil & Gas Technical Advisory Board members and replacing them with his own people, including so-called “non-voting” members (see Why did PA DEP Acting Sec Quigley Mass Fire Gas Advisory Board?). Since he’s losing the PR battle on that front, he’s changed tactics, referring to the TAB almost as window dressing…no big deal…they don’t even have any authority or power to really do anything…nothing to see here, these are not the droids you’re looking for, move along…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Counties Line Up Against Wolf Severance Tax, Distrust Assurances
March 26, 2015March 26, 2015

Pennsylvania counties are saying “no thanks” to PA Gov. Tom Wolf’s severance tax plan. They don’t believe (justifiably so) that they’ll make out just as well under a severance tax as they have under an impact fee. They’re not falling for Wolf’s “just trust me, ya’ll will be just fine” routine. Wolf is not in a political pickle because the County Commissioners Association of Pennsylvania is lining up against his high severance tax proposal. Wolf tells counties they’ll still get what they were getting under the impact fee. They’re telling him, politely, that he’s full of beans…
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Bradford County | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Susquehanna County | Tioga County (PA)

PA DEP Issues Drought Watch in 27 Counties, Including Marcellus
March 26, 2015March 26, 2015

Yesterday the Pennsylvania Dept. of Environmental Protection issued a drought watch for 27 counties in the state, including some of the most heavily drilled Marcellus Shale well counties–including Susquehanna, Bradford and Tioga counties. A drought watch is, according to the DEP, the first and least-severe level of the state’s three drought classifications and calls for water users to voluntarily conserve 5% of the water they have been using…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Marcellus Industry to DEP Tech Advisory Bd: You’re Out of Order!
March 25, 2015March 25, 2015

The Marcellus industry in Pennsylvania is none too happy with the performance thus far of Acting Secretary of the Dept. of Environmental Protection, John Quigley. As MDN has noted, Quigley first fired the members of the DEP’s Oil & Gas Technical Advisory Board (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?), then he pulled a fast one, changing up revised drilling rules that were already done and ready to go under Tom Corbett’s administration (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Needless to say, Quigley isn’t impressing anyone so far. The reporters at Marcellus.com have noticed and selected out some choice comments by the industry, illustrating their frustration with the new regime. One comment even channels Al Pacino…
Read More “Marcellus Industry to DEP Tech Advisory Bd: You’re Out of Order!”
Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Even with Capex Budgets/Jobs Slashed, NE Production Still Rising
March 25, 2015March 25, 2015

Capital expenditure budgets slashed 20%, 30%, 40% and more. Mass firings in the thousands by oilfield services companies. The mad dash to raise cash to keep going. Shutting in wells to slow or stop production. Some days it seems like the news is all doom and gloom. But what’s this? Even though rig counts are down, capex is slashed and jobs are dwindling, production in the Marcellus/Utica will continue to go UP in 2015. You read that right. How can that be? According to some excellent research published by NGI’s Shale Daily, production will continue to go up because “efficiencies in drilling techniques and low operating costs are overcoming the energy industry downturn.” That is, good old American ingenuity is once again figuring out how to do more with less. What did the ace reporters at Shale Daily discover when they dug down into the data?…
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Economic Impact | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Research | Statewide PA

New Study Finds PennEast Pipeline to Save PA & NJ Residents $900M
March 25, 2015March 25, 2015

Concentric Energy Advisors Inc., an independent management consulting and financial advisory firm focused on the North American energy industry, has just published a new report that shows the economic impact from the PennEast Pipeline will be huge for both Pennsylvania and New Jersey residents. The study, titled “Estimated Energy Market Savings From Additional Pipeline Infrastructure Serving Eastern Pennsylvania And New Jersey” (full copy embedded below) finds that PA electric and natural gas customers will see a combined savings of over $500 million, while NJ electric and gas customers will see a combined savings of nearly $400 million…
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

Range Resource Secret to Drilling More Productive Wells for Less $
March 24, 2015March 24, 2015

Every year drillers get better at what they do. They experiment, they learn, they grow. Here’s an example from Range Resources. Range went back to a well pad they previously drilled with five wells and drilled two more. The two new wells used a different technique. Comparing the first year of production from the new wells with the first year of the original wells, the two new wells produced 53% more natural gas (per well) than the old wells did. Tell us again, peak oil/gas theorists, how the shale boom is just a flash in the pan and will be all gone by the end of this decade. Here’s more details on how Range increased production by 53%–what their “secret” is to drilling more productive wells using LESS money per well…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Gov Wolf Digs In Like a Chigger with Severance Tax Plan
March 24, 2015March 24, 2015

Newly elected Pennsylvania Gov. Tom Wolf, whose administration is filled with Ed Rendell retreads, remains “dug in” when it comes to a severance tax. One of the Rendell retreads (with ties to the anti-drilling PennFuture) is John Hanger, former Secretary of the Dept. of Environmental Protection under Rendell. Hanger is Wolf’s Secretary of Planning and Policy (see PA Gov-Elect Wolf Appoints John Hanger Secretary of High Taxes). Hanger ran against Wolf and Wolf’s (now) chief of staff, Katie McGinty, who is herself another Rendell retread, before dropping out of the governor race last year (see Pass One Last Joint for John Hanger). True to his far-left lib Dem roots, Hanger (as Wolf’s mouthpiece on this issue) is saying we need those high severance taxes and we need them now. Squishy RINO Republicans, like Senator Joe Scarnati, will consider adopting the severance tax–but only after ~~being bribed enough~~, er, ah, pension reform is dealt with first…
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Industrywide Issues | Pennsylvania | Research | Statewide PA

PA 2014 Top 5 Lists for: Wells Drilled / Inspections / Violations
March 24, 2015March 24, 2015

We’ve written about it before, but once again we want to highlight the excellent service provided by Marcellusgas.org. They maintain a data site filled with facts and figures on every shale well in Pennyslvania. Everything from production to how much brine/wastewater is produced to the number (and type) of violations for each well (and for each driller). It’s a true treasure trove. You can access a lot with a free membership, but it only costs $20 a year to access a whole lot more. (No, we don’t even know the guy who runs it and we don’t get paid to sing their praises!) Marcellusgas.org recently sent an email to members with some “top 5” lists for 2014: the top 5 counties with highest number of wells drilled, top 5 drillers by number of wells drilled, top 5 for number of inspections (by county and driller) and top 5 for number of violations (by county and driller). We found the lists interesting and thought you would too…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Marcellus Industry Consolation Prize: DEP Conventional Board
March 24, 2015March 24, 2015

Pennsylvania Dept. of Environmental Protection Acting Sec. John Quigley packed the DEP’s Oil & Gas Technical Advisory Board with members who will rubber stamp his onerous new drilling rules (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Quigley used the excuse that the board was splitting in two, one board (the TAB) to cover unconventional/shale drilling, the other–Conventional Oil and Gas Advisory Committee (COGAC)–to cover traditional, vertical-only drilling. TAB is arguably the more important board because conventional drilling, which once was the only kind of drilling in the state, has all but shriveled up. There’s hardly any conventional drilling in PA these days. So with the TAB safely full of Quigley acolytes, it’s time to hand out the consolation prizes to the industry by giving them seats on the COGAC. Which is exactly what happened yesterday…
Read More “PA Marcellus Industry Consolation Prize: DEP Conventional Board”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules
March 23, 2015March 23, 2015

Perhaps we now know why PA’s Acting Secretary of the Dept. of Environmental Protection, John Quigley, fired the entire DEP Oil & Gas Technical Advisory Board once he took office, something no other incoming governor/administration has done in more than a generation (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?). Why? To pack the board with new members who will agree to onerous changes to the 1984 PA Oil and Gas Act. Changes to the Act were required under the 2012 Act 13 law (see Rewrite of 1984 PA Oil and Gas Act Underway). A very long and detailed process took place over the past three years and that process was very nearly complete–frankly was complete, until Tom Wolf was elected governor. Wolf’s election put the final adoption of new rules on hold. In came the PennFuture administration (Quigley along with Cindy Dunn as head of the Dept. of Conservation and Natural Resources and John Hanger as Wolf’s head of policy are all alumni of the anti-drilling PennFuture). The PennFuture brigade has screwed around with the rules, adding their own anti-drilling changes, and they now want the Technical Advisory Board to rubber stamp it. Needless to say, the Marcellus industry isn’t taking it well…
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CNG/LNG | Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Lots of Interest in Building LNG Facility at PGW’s Philly Port
March 23, 2015March 23, 2015

Could LNG (liquefied natural gas) fed by Marcellus Shale gas one day be exported from Philadelphia to Europe? That’s the hope being offered by one company to the struggling Philadelphia Gas Works. Another company also wants to beef up the LNG operation at Port Richmond (owned by PGW), but their plan would be to sell LNG domestically–for use here in the U.S. Now that the corrupt Philadelphia City Council has quashed plans for PGW to be sold and privatized (see Philly City Council Kills the Phila. Gas Works $1.86B Deal), it seems everyone has a “great idea we’d like to run by you” for PGW to consider…
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Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Shell | Statewide PA

Shell #2 to Receive Sustainable Shale Development Certification
March 19, 2015March 19, 2015

The Center for Sustainable Shale Development (CSSD) announced yesterday that a second company has achieved the organization’s vaunted seal of approval: Shell. You may recall last September Chevron became the first Marcellus driller to receive CSSD certification (see CSSD Bestows First Certification for Sustainable Drilling: Chevron). Both Chevron and Shell, along with EQT and CONSOL Energy, are founding members of the organization. The CSSD is a partnership between the Marcellus industry and environmental groups to boost the standards–and the image–of shale drilling. It got its start two years (see Important: Drillers & Enviros Form New Group, Launch Cert Program). MDN was initially critical of the organization, with concerns about the expense of a certification for smaller companies–and because CSSD may be setting artificially high requirements that won’t “protect” the environment any more than existing state standards–why spend money and jump through hoops when there’s no real gain in environmental protection? (It also didn’t help that their early attitude was our way or the highway.) However, we’ve spoken to both Andrew Place of EQT, the original acting executive director for the organization, and Susan LeGros, current executive director. In speaking with them, many of our concerns were addressed. We’re not yet full-blown fans, but we’re also not taking pot shots at the organization. Their objective is a worthy one. Will it catch on? That remains to be seen. Here’s the announcement that Shell is now CSSD certified…
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