Statewide PA

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    Cleveland Fed Finds PA Natgas Production Up 1000% from 2009-2014

    Earlier this week the Federal Reserve Bank of Cleveland published a paper titled “Trends in Energy Production and Prices” (full copy below). In the paper, Cleveland Fed researchers examine national and Fourth District (KY, OH, WV, PA) trends in energy production and prices. What did they find? OH and WV doubled their natural gas production from 2009 to 2014. However, production in PA went up 1000% during that time, thanks to the Mighty Marcellus. Because of shale gas, energy prices are generally down across the region. Coal production is also on the decline in the northeast…
    Read More “Cleveland Fed Finds PA Natgas Production Up 1000% from 2009-2014”

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    New Report: Housing and Marcellus Shale Development in PA

    The Center for Rural Pennsylvania, 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. In January, the Center published their third report in the Marcellus series (see New Report: Marcellus Shale Drilling’s Impact on PA Schools). In February, they issued their fourth report (see Report: PA’s Youth Not Impressed with Marcellus Industry). In March? Yep–a fifth report. This one is titled “Housing and Marcellus Shale Development” (full copy below). This study takes a look at how you house all those Marcellus workers when they show up to start drilling–and does it affect rent prices?…
    Read More “New Report: Housing and Marcellus Shale Development in PA”

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    Post-Gazette: Wolf Budget with Severance Tax “a Miss…Utter Folly”

    Swing and a MissUsing the same class warfare language all Democrats resort to when they want to justify their enormous appetite for taxing and spending, yesterday Pennsylvania Gov. Tom Wolf introduced the highest-ever budget in PA and attempted to lay a huge theft, in the form of a so-called severance tax, on the Marcellus industry by saying, “We deserve to be fairly compensated for the use of our resources.” Just one problem Tom: IT’S NOT YOUR RESOURCES! The resources in question belong to private landowners and your proposal to steal their money, along with the money of the drillers who risk a lot of capital to drill, is abhorrent. The justification is that the money stolen will be given “to the children”–by which he means given to teachers’ unions who turned out the vote for him. The Wolf budget landed yesterday–with a thud–and it calls for $1 billion in taxes on the Marcellus industry. Wolf thinks he can get buy-in by ensuring $225 million of that amount will be kept local, like the old “impact fee.” That’s the payoff to try and get support for this Marcellus-killing budget. He plans to fork over the rest of it to Big Education as their reward for voting for him. Even the Pittsburgh Post-Gazette calls his budget “a miss” and “utter folly.” Can you believe that? It’s so bad even the anti-drilling editors at the Post-Gazette don’t like it…
    Read More “Post-Gazette: Wolf Budget with Severance Tax “a Miss…Utter Folly””

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    More Troubling Remarks by Wolf’s Acting DEP Sec. John Quigley

    PA Gov. Tom Wolf’s Acting Secretary of the Dept. of Environmental Protection (DEP), John Quigley, is increasingly bold in his pronouncements about the Marcellus industry, which is deeply troubling. He did, after all, once work for and advocate for the anti-drilling PennFuture (see Ripping the Mask off PennFuture & It’s Former Employees). In reading an article where Quigley is quoted, we’re somewhat alarmed at his increasing boldness in trash-talking the Marcellus industry…
    Read More “More Troubling Remarks by Wolf’s Acting DEP Sec. John Quigley”

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    Sen. Joe Scarnati Admits Impact Fee is Really a Tax

    In all of the coverage of PA Gov. Wolf’s ill-fated budget–the highest ever for the state of Pennsylvania–we spotted one comment that validates what we’ve been saying for more than two years: The Act 13 “impact fee” is really just a tax. In fairness, it’s 60% fee and 40% tax because 60% of it stays in the communities where drilling happens to reimburse them for things like improving roads, extra law enforcement personnel and beefing up local fire departments. The 40% portion disappears into the black hole of Harrisburg–into greasy politicians’ fingers. In February 2012 MDN pointed out the so-called impact fee is really just a tax (see PA’s New Tax on Drilling (er Sorry, Impact Fee)). The chief architect of the impact fee, State Sen. Joe Scarnati (Republican from Jefferson) finally admitted it yesterday. He blamed Gov. Tom Corbett for not wanting to call the impact fee what it really is–a tax–and he said so to the Philadelphia Inquirer…
    Read More “Sen. Joe Scarnati Admits Impact Fee is Really a Tax”

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    Dramatic Budget Cutbacks in Marcellus Budgets for 2015

    It’s not an understatement to say that drillers in Pennsylvania are in a fight for their very existence. Socialist Gov. Tom Wolf has convinced a great many PA residents in the state that it’s perfectly fine to steal money from drillers and landowners and redistribute it to Big Education. What Wolf and those who blindly follow him don’t realize is that Wolf’s nosebleed severance tax is the equivalent of a butcher knife to the neck of the goose laying Marcellus golden eggs–those eggs being jobs and current tax revenue. If Wolf & company pull the trigger on the tax, it will be catastrophic for the drilling industry in the state. Drilling is already decreasing–by huge numbers. Capital budgets for 2015 have been slashed–typically in one-third to one-half of 2014 levels. New drilling may all but stop with such a new tax–denying the tax and spend Democrats the revenue they seek “for the children.” What will they do then? The Marcellus Shale Coalition is blowing the trumpet to warn people of the coming train wreck that is Tom Wolf’s severance tax. One of the ways they are doing it is with an emailed newsletter called Marcellus Moments. Yesterday’s edition contains an excellent table showing Marcellus drillers and how much they’ve announced they are cutting back on their capital budgets for 2015. When you see it table form (below), it’s rather shocking. Do the Dems really think drillers will just keep on drilling when their already-squeezed profits disappear into a socialist tax black hole? Although the Marcellus is the biggest, it’s not the only shale play around. Rigs can be moved…
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    Majority of PA Voters DON’T Support a New Severance Tax Right Now

    The results of a recent poll conducted of PA voters, paid for by the Marcellus Shale Coalition, is (in our opinion) being misreported. The headlines, which all seem to quote a single story in the Pittsburgh Tribune-Review, claim that a “majority” of PA voters support slapping a new tax on shale drillers. That’s not how we read the results…
    Read More “Majority of PA Voters DON’T Support a New Severance Tax Right Now”

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    CSSD Expands Certification Standard to Include Wastewater Disposal

    The Center for Sustainable Shale Development (CSSD) has popped back into the news. The CSSD is an effort by both the drilling industry and environmental groups to craft a set of standards that both sides can support resulting in (for those companies who follow the standards)–a sort of Underwriters Laboratory “seal of approval” certification. You can boil it down to an effort to, “Can’t we all just get along?” As MDN has chronicled over the past two years since it was launched in March 2013, it’s been a rocky start for the CSSD (see MDN’s string of stories on the CSSD here). MDN has been critical of the organization from the beginning, although lately we’ve begun to warm to the organization and its mission. We’ve spoken in person with both the former executive director of the CSSD, Andrew Place (from EQT) and the current executive director, Susan LeGros. They both make a compelling case for the organization. LeGros and the CSSD announced last week they have, for the first time, expanded one of their 15 standards to include guidelines for what happens to frack wastewater after it has left the drilling site…
    Read More “CSSD Expands Certification Standard to Include Wastewater Disposal”

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    Ripping the Mask off PennFuture & It’s Former Employees

    ripping mask offFor months now, since the announcements of who then Gov.-elect Tom Wolf would appoint in his new administration to head up environmental efforts at both the Dept. of Environmental Protection (John Quigley) and the Dept. of Conservation and Natural Resources (Cindy Dunn), MDN has called attention to the fact that both of those individuals are problematic based on their previous roles in the anti-drilling organization PennFuture. A third member of the Wolf administration is John Hanger, a previous Secretary at the DEP and an early member (supposedly founder) of PennFuture. All three once worked for Democrat Gov. Ed “Fast Eddie” Rendell and now are at the top of the power structure in Harrisburg working for Wolf. MDN friend and ace analyst Tom Shepstone rips the mask off PennFuture and exposes it for what it is in a new article published on his always excellent Natural Gas Now website. Tom delves into the intricate (and sleazy) web that connects PennFuture to anti-drilling organizations like the Heinz Endowments, the Delaware Riverkeeper, William Penn Foundation, FracTracker Alliance and others. Because it’s important for PA citizens to understand who these people are–and because it’s important for PA’s legislators to question (grill) Quigley and Dunn about their anti-drilling activities before confirming them–we bring you Tom’s excellent expose below…
    Read More “Ripping the Mask off PennFuture & It’s Former Employees”

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    Crushing Defeat for PennFuture in Lawsuit re Compressor Stations

    Bill Clinton definition of is isPennFuture, the anti-drilling organization that has produced three top lieutenants in the PA Gov. Tom Wolf administration (see Ripping the Face off PennFuture & It’s Former Employees), frequently uses the court system in its attempt to slow or stop the Marcellus industry. One such case was a lawsuit PennFuture filed against Ultra Resources in 2011. Ultra had eight compressor stations scattered across Tioga and Potter counties–all of them many miles apart from each other. PennFuture tried to make the legal argument that all of the compressor stations should be combined together and treated as a single entity for the purposes of the federal Clean Air Act, which would have resulted in either very expensive equipment to reduce each facility’s nitrgen oxide (NOx) output, or perhaps closed some of them down to make the combined total come in under a certain threshold. PennFuture tried to say the eight facilities are “adjacent” for the purpose of the Clean Air Act. Ultra argued adjacent means “next to,” as in sharing a border. It all boils down to what the definition of adjacent means. Earlier this week U.S. District Court for Pennsylvania’s Middle District ruled in favor of Ultra and against PennFuture…
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    PA’s “Independent” Fiscal Office Says Drillers Pay Low Taxes

    It appears PA Gov. Tom Wolf’s severance tax proposal isn’t the slam dunk he thought it would be. Must be time to sneak in a supposedly “impartial study” that says raising taxes on drillers won’t hurt anybody–they ain’t goin’ nowhere ’cause that gas in under Pennsylvania soil. And right on cue the partisan so-called Pennsylvania Independent Fiscal Office (IFO)–populated with Democrats appointed by Ed Rendell and paid with taxpayer’s money–has issued a “research brief” which says the “effective tax rate” on PA drillers four years ago was 5.3%–but today it’s a measly 2.1% (robber barrons!). The new “brief” delights Gov. Wolf and the soak-the-drillers-we-hate-fossil-fuels-anyway Democrats in Harrisburg. This is not the first so-called research issued by the IFO calling for high taxes on drillers. They said the same thing last year–only last year’s report was longer (see PA Partisan Study Finds PA Needs to Soak Drillers with New Taxes). Here’s the latest pathetic attempt to build a case for stealing the money from one industry (oil & gas) to give it away to another (big education)…
    Read More “PA’s “Independent” Fiscal Office Says Drillers Pay Low Taxes”

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    Member of Wolf DEP Transition Team Confused by Severance Tax Plan

    confusedCharlie Schliebs is managing director of Stone Pier Capital Advisors in Pittsburgh–a boutique mergers & acquisitions (M&A) advisory firm that provides “highly sophisticated services to companies with enterprise values ranging from $5 million to over $50 million” according to their website. Charlie was on the PA Gov. Tom Wolf transition team for the Dept. of Environmental Protection (DEP) and said “it was a good experience.” Charlie is also, generally, a Tom Wolf fan. He likes the fact that Wolf isn’t a typical politician and was/is a successful businessman. Charlie supported Wolf in the last election. Charlie is also an MDN reader. You know we’re not Tom Wolf fans–in particular with respect to his severance tax proposal. In Stone Pier’s latest newsletter for friends and customers, Charlie writes an important cover story about Wolf and his severance tax proposal–and why he’s confused by it. We’re happy to bring it to you–it’s an important read…
    Read More “Member of Wolf DEP Transition Team Confused by Severance Tax Plan”

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    Wolf’s Severance Tax Threat Costs Small PA Town $315,000

    threatTwo weeks ago the hapless newly elected governor of Pennsylvania, Tom Wolf, introduced a new 7.5% severance tax plan to soak the Marcellus Shale industry in his state (see PA Gov Wolf Proposes Marcellus-Killing 7.5% Severance Tax). Wolf wants to target one industry, oil and gas, to give their hard-earned money away to another industry, teachers. He’s trying to pay back all of those good union voters in Philadelphia who elected him. But Wolf’s threat of a tax is already having very tangible consequences. Huntley & Huntley Energy Exploration has pulled out of a deal to lease 90 acres of land owned by Harmar Township (Allegheny County), PA. That just cost Harmar $315,000. Why did Huntley & Huntley pull out? The uncertainty over Wolf’s severance tax. If the tax passes, a great deal of drilling in PA’s Marcellus Shale will be idled–and that’s not idle speculation…
    Read More “Wolf’s Severance Tax Threat Costs Small PA Town $315,000”

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    Will DEP Sec Quigley Intentionally Miss Deadline for New Drilling Regs?

    Last week MDN gave you the heads up that new “acting” Sec. of the PA Dept. of Environmental Protection, John Quigley, is already signaling his desire to clamp down on the Marcellus industry. He mass-fired the members of the Oil and Gas Technical Advisory Board (OGTAB)–something no other governor and head of the DEP has done in living memory (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?). Scott Perry, deputy secretary of the DEP, says long-awaited new regulations formulated after the Act 13 law was passed in 2012 will not be delayed because of the mass firings on the OGTAB. Others, however, are not so sure. We still see tremors of a coming earthquake in which Wolf/Quigley screw around and miss the deadline (intentionally) and then rewrite the new regulations once again, to suit their own proclivities on drilling…
    Read More “Will DEP Sec Quigley Intentionally Miss Deadline for New Drilling Regs?”

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    PA MCOR Director Goes on the Road — to Alergia

    We’ve never been to Algeria, but Thomas Murphy, the co-director of the Marcellus Center for Outreach and Research (MCOR), has. Last week Murphy attended an oil and gas conference in Algiers, Algeria to present on the “American experience” in extracting oil and gas from shale. We don’t have a transcript of his statements, but we do have international reaction. According to reports, Murphy admitted that “the shale industry will always pose some environmental risk” including “the contamination of aquifers, infiltration of natural gas in drinking water or failures related to landfill processes of chemical and radioactive waste are the main risks relating to the exploitation of unconventional gas.” We suspect the comments in context are a simple acknowledgement that you have to be careful and follow regulations to avoid problems. But international Arab media seems to be presenting his comments as some sort of grudging admission that shale drilling pollutes the environment, which of course is not the case (when it’s done properly)…
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    PA Gov Wolf Tries to Walk Back Ban Comment, PIOGA Doesn’t Buy It

    passive aggressiveIs Pennsylvania Gov. Tom Wolf an extortionist? Or is he just dumb? Last week, in response to a reporter’s question about his proposed severance tax and what might happen if it doesn’t pass the legislature, Wolf said this: “You know, the alternative is not really no tax… the alternative is no drilling – a ban as in the case of New York” (see PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax). What the heck did he mean by that? And why are there NO mainstream media outlets covering it? Yesterday Wolf tried to walk back his comment without looking like a dolt. He didn’t succeed. The Pennsylvania Independent Oil and Gas Association (PIOGA) is fighting mad and says Wolf’s comment is tantamount to extortion (see their letter below). So which is it Gov. Wolf? Are you threatening the Marcellus industry in your state–pay the tax or die? Did you take one too many Xanax pills before the presser last week and you “misspoke”? What, precisely, did you mean by your comment?…
    Read More “PA Gov Wolf Tries to Walk Back Ban Comment, PIOGA Doesn’t Buy It”