Statewide PA

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…
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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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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Federal Court Tosses Out Lawsuit by Dr. in PA Act 13 Law – Again
March 19, 2015March 19, 2015

The end of a loooong chapter in lawsuits over Pennsylvania’s Act 13 drilling law came earlier this week when a federal appeals court ruled that no, Dr. Alfonso Rodriguez, a nephrologist from Dallas in Luzerne County, PA does NOT have “standing” to claim Act 13 applies some sort of medical “gag rule” that doesn’t allow doctors access to information they need to treat their patients. Dr. Rodriguez, along with seven selfish towns, sued to overturn Act 13. The towns didn’t like being told they couldn’t zone drilling out of existence within their borders, and the doctor didn’t like being told he couldn’t blab drillers’ trade secrets all over the place. So it went to PA’s Supreme Court and they ruled in favor of the towns, but sent parts of the lawsuit back to a lower court, including the doctor’s portion (see Act 13 Goes Back to Lower Court, Disturbing Comments from Judge). The case has now been tossed out no less than three times in federal court. Hopefully this third time is the charm…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Dela. Riverkeeper Leidy Lawsuit Costing Williams $125K per Day
March 19, 2015March 19, 2015

The clock is ticking. As we told you on Monday, THE Delaware Riverkeeper–Maya van Rossum–is using her bags of money from the William Penn Foundation to try and stop the FERC-approved expansion of the Transco pipeline in northeastern Pennsylvania (see Dela. Riverkeeper Halts Transco Pipeline Upgrade with Lawsuit). The project, known as the Leidy Southeast expansion project, would add new pipeline next to existing pipeline–called looping. Williams (owner of the Transco) can only cut trees down along the path it needs to clear until April 1st. After that, they must wait until Nov. 1st to begin cutting again in order to avoid cutting down trees that may (or may not) become roosting spots for the endangered Indiana bat. van Rossum & company have gotten a sympathetic judge in D.C. to halt the tree cutting while he reviews her latest frivolous lawsuit. She’s trying to run the clock down. The D.C. Circuit Court of Appeals was supposed to rule earlier this week. They didn’t. Every day they delay is costing Williams $125,000. We sincerely hope Williams sends that bill to van Rossum once the tree cutting begins again…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

Chutzpah: Dela. Riverkeeper Takes Credit for Pushing DRBC Around
March 19, 2015March 19, 2015

As part of a story about THE Delaware Riverkeeper’s frivolous lawsuits to stop both the Leidy Southeast pipeline project and the PennEast pipeline project, an article quotes Maya van Rossum, head of Delaware Riverkeeper, claiming that SHE is the reason the Delaware River Basin Commission now puts all pipeline projects under a microscope. That’s real chutzpah. The DRBC quickly denounced van Rossum’s bunkum and said their standards for evaluating pipeline projects haven’t changed…
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Indiana County | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Wastewater

Change in PA DEP Tone Toward Marcellus Industry Noticeable
March 19, 2015March 19, 2015

The newly reconstituted Pennsylvania Dept. of Environmental Protection has taken on a decidedly more antagonist tone with the Marcellus drilling industry, unfortunately. You can detect this new tone, no doubt fostered by its new Acting Secretary, John Quigley (formerly from the anti-drilling PennFuture), in its press releases. Like the one below. The story is that there is a coal refuse site in Indiana County, PA used to process and store waste from coal mining. Close to that site is a wastewater impoundment where leachate (nasty water coming from the coal refuse site) was collected and stored, creating a somewhat toxic sludge under the impoundment. In addition, some shale drilling wastewater was stored in that same impoundment. It appears that most of the environment hazards come from the coal waste leachate, but notice how shale brine is intertwined, mixed in, subsumed and painted with the same toxic brush as the coal waste leachate–as if brine has the same (or worse) toxicity (which it doesn’t)…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Investigation: Delaware Riverkeeper Violates Non-Profit Charter
March 18, 2015March 18, 2015

Two days ago MDN brought you the story that two Philadelphia-area so-called non-profit organizations–THE Delaware Riverkeeper and the Clean Air Council–are not only interfering in a town on the opposite side of the state, they’ve caused the residents of that town to pay (so far) over $35,000 in legal fees (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). Our good friend Tom Shepstone from the always-excellent Natural Gas Now website did some digging and has found Delaware Riverkeeper is violating the terms of their non-profit charter by doing what they’re doing in Middlesex–something the IRS should investigate post haste…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Kathleen “Wag the Dog” Kane Says Chessy Investigation Almost Done
March 18, 2015March 18, 2015

One of the Democrats’ favorite tactics: When the spotlight is on you because of your own criminal behavior, try to turn it elsewhere. Quick, anywhere! Bill Clinton tried it when he was being dogged by the Monica Lewinsky scandal–he bombed an aspirin factory in the Sudan. It’s called Wag the Dog–as in create a new issue to distract people from the old issue you don’t want them to focus on any more. Apparently Pennsylvania’s Attorney General, Kathleen Kane, is using the same tactic. A grand jury says Kane broke the law herself in her role as AG by committing perjury (see PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath). Kane is fighting the charge in court by using Bill Clinton’s lawyer attack dog Lanny Davis. Apparently Lanny is now advising Kane to Wag that Dog too. So Kane is saying her investigation of Chesapeake Energy over shorting landowners out of royalties due to them is “almost wrapped up”–which of course has everyone buzzing and forgetting about her own criminal behavior…
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Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Susquehanna County

What’s Wrong with the Employment Picture in the Marcellus? Ageism.
March 17, 2015March 17, 2015

This is not an easy story to write. It’s about employment in the Marcellus Shale industry–and about age discrimination. Until late last year, by all accounts the Marcellus Shale industry was, from a jobs perspective, going great guns. Yes, sometimes it was/is necessary to import workers from other states to handle specialized jobs. But increasingly the jobs have been going to local workers and not out-of-staters. Yesterday we received a heartfelt letter (below) from an MDN subscriber. This gentleman is a mechanical engineer with degrees from Penn State and Lafayette College. He has loads of experience in a variety of areas–engineering, contracting, even running a small business. He wants to get involved with the greatest industry on the planet–the Marcellus Shale energy industry. He can paper every room in his house with the number of resumes and job applications he’s filled out. He’s applied for everything from technician to field hand to roustabout (he’s physically fit). In the last five years that he’s been trying, he hasn’t been called for a single interview. Not one. He’s now 52 years old. We don’t like calling attention to stories like this one, but MDN doesn’t shy away from sharing the “bad news” about our beloved industry along with the overwhelming good news…
Read More “What’s Wrong with the Employment Picture in the Marcellus? Ageism.”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Important & Overlooked Details on PA Gov Wolf’s Severance Tax
March 17, 2015March 17, 2015

More details continue to come out about PA Gov. Tom Wolf’s Marcellus-killing severance tax. For example, did you know that towns and counties that previously received money from the impact fee will continue to get money under this tax–but that the amount they get will be capped? Under the existing impact fee the more drilling in an area the more money that area receives to compensate for the drilling (roads that need repairing, beefing up first responders, etc.). No more. Under Wolf’s plan, there is an upper limit on how much money he’s willing to give those locations that actually see drilling. The rest, you see, must go to pay off campaign debts to teachers unions. Another fatal flaw in Wolf’s severance tax: He calculates the tax based on $2.97 per thousand cubic feet sale price, regardless of what the actual sale price is. Do you know what the sale price for natural gas at the Leidy hub was on March 13th? It was $1.435/Mcf–about half of what Wolf is using as the standard rate. That means the effective tax rate for drillers selling gas for $1.435 is twice what it is for drillers selling at Wolf’s magical $2.97. What do you think drillers in northeast PA (near the Leidy hub) will do? That’s right. Shut in their wells and lay down their rigs…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Pike County | Regulation | Statewide PA | Wayne County

PA Gov Tom Wolf Supports DRBC Moratorium on Marcellus Drilling
March 17, 2015March 17, 2015

As we’ve stated a number of times, newly-elected PA Gov. Tom Wolf is a major disappointment–a man out of his depth in attempting to run an entire state. Now comes word that Wolf supports the Delaware River Basin Commission’s (DRBC) anti-drilling policies that prevent drilling in his own state. We previously told you Wolf had employed the former anti-drilling head of the DRBC as a member of his transition team (see PA Gov-Elect Wolf Transition Team Includes DRBC’s Carol Collier). Two weeks ago, Wolf proposed increasing the DRBC’s budget by 73%, while states like New York and New Jersey continue to refuse paying their fair share (see PA Gov Wolf Increases DRBC Funding by 73% to 3/4 Million Bucks). Now he adds insult to injury by saying he supports the drilling ban in Wayne and Pike counties in his own state…
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Economic Impact | Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Research | Statewide PA | Transco | Williams

Atlantic Sunrise Will Pump $1.6B into Economy, Create 8K Jobs
March 17, 2015March 17, 2015

Williams pushed out a new economic analysis of their Atlantic Sunrise pipeline project yesterday. The project, if built, will cost $2.1 billion and consist of compression and looping of the Transco Leidy Line in Pennsylvania along with a greenfield pipeline segment, called the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania. Additional existing Transco facilities are being added or modified to allow gas to flow bi-directionally. The preliminary project design includes 178 miles of new greenfield pipe (Central Penn North & Central Penn South), two pipeline loops totaling about 12 miles (Chapman Loop, Unity Loop), 2.5 miles of existing pipeline replacement, two new compressor facilities in PA, and other facility additions or modifications in five states (PA, MD, VA, NC, SC). There’s been some push back by small groups of anti-drillers in places like Lebanon County and Lancaster County (PA) where a phony Indian tribe claims the pipeline will run through ancient burial grounds (see Convicted Lancaster Protesters Taunt Williams After Court Date). Meanwhile, the adults at Williams continue to make progress. The analysis they released yesterday shows the Atlantic Sunrise project will pump $1.6 billion into the economies of the states where it’s built, and create 8,000 jobs…
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