Statewide PA

Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Drilling Regs in Process Since 2012 Delayed by PA Gov Wolf
February 11, 2015February 11, 2015

The 2012 Act 13 law did a great deal to update oil and gas drilling regulations, something Gov. Ed Rendell failed to do when he was in office. But it didn’t do the whole job. Part of the law left it up to the five-member Oil and Gas Technical Advisory Board, part of the PA Dept. of Environmental Protection, to codify all sorts of new regulations to make drilling better and safer. Remember, this started in 2012 (which tells you how slowly government moves). The original proposal had 23 pages of changes and new rules, which later blossomed to 73 pages (see 1984 PA Oil & Gas Act Rewrite Delayed but Still Coming). In 2013, the DEP took the draft regulations on “road show” seeking public comment, which they extended into early 2014 (see PA DEP Extends Roadshow for Public Comment on New Drilling Rules). The last we heard, the new regs were supposed to be released in very early 2015 (see DEP Sec. Abruzzo Says Budget Bill Means Delay in New Drilling Regs). Scratch that now. A draft of the final final final final rules was supposed to be discussed on Jan. 22, two days after the coronation of Gov. Tom Wolf, but that was canceled to give Wolf and presumably John Quigley, Wolf’s nominee to head the DEP, time to rewrite them yet again…
Read More “PA Drilling Regs in Process Since 2012 Delayed by PA Gov Wolf”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Senators Have Some Tough Questions for DEP Nominee John Quigley
February 10, 2015February 10, 2015

As the time approaches for hearings on newly-elected Pennsylvania Gov. Tom Wolf’s choices to head up key agencies, like John Quigley nominated to heard the Dept. of Environmental Protection, some senators will have some pointed questions for him. MDN has covered some of Mr. Quigley’s controversial positions–things he’s written on his blog and the time he has spent at the anti-drilling PennFuture (see In His Own Words: Quigley’s Positions on Fracking, NY Ban, Etc.). He’s a true believer in global warming and thinks the heavy hand of government should do more to stop it. He’s also on record as saying in PA “in large measure, we have not gotten it right in the past”–referring to Marcellus Shale drilling (see Quigley Says Opportunity to Get Marcellus Drilling “Right” in PA). It’s statements like that that are giving some senators, according to Senate President Pro Tempore Joe Scarnati, “indigestion”…
Read More “PA Senators Have Some Tough Questions for DEP Nominee John Quigley”
Anti-Drilling/Fossil Fuel | Crime | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Drillers Don’t Like Being Considered Suspects in Crimes
February 9, 2015February 9, 2015

Some children are never taught the life lesson that actions have consequences–and that you have to take responsibility for your actions. Some of those children grow into adulthood never learning that lesson. If you belong to groups that engage in “peaceful” blockades of fracking facilities or drill sites or pipeline sites, while shouting and screaming like you’re possessed, you might end up on a “watch list” by law enforcement. Why? Because some who act the very same way you’re acting tilt over into acts of lawlessness–sabotage and breaking things. It’s only prudent to keep an eye on groups of people who might be prone to such actions. But if you’re a spoiled child who grew up to be a spoiled adult, you take offense at being held to account for your actions because, well because YOUR actions shouldn’t have consequences. Your actions never had consequences when you were growing up–why should they now? We’re speaking about those who don’t like the fact that law enforcement–and yes, the drilling industry–keeps an eye on people who may be prone to breaking the law…
Read More “Anti-Drillers Don’t Like Being Considered Suspects in Crimes”
Pennsylvania | Statewide PA

Shale Gas News Radio – Feb 7, 2015 [Audio]
February 9, 2015February 9, 2015

Every Saturday the one-hour Shale Gas News show airs on Scranton, PA’s 94.3 FM “The Talker” radio station. The show is co-hosted by Kevin Lynn of Linde Corporation and Bill desRosiers from Cabot Oil & Gas. MDN brings you the latest program show notes and recordings for Shale Gas News each week (well worth your time to listen). Here’s the latest program, recorded on Saturday, Feb 7…
Read More “Shale Gas News Radio – Feb 7, 2015 [Audio]”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Philly State Senators Want to Slap Marcellus Industry with 9.9% Tax
February 6, 2015February 6, 2015

We seriously wonder if some of the legislators that serve in the Pennsylvania State Legislature are on drugs. Seriously. What else can explain comments like those from Pennsylvania State Senator Vincent Hughes (Democrat from Philadelphia) in saying the Marcellus Shale industry currently pays no taxes, that the drilling industry is making PA children “suffer,” and he thinks the industry should be hit with a new 8% severance tax PLUS another 1.9% impact fee. It’s absolutely mind-blowing–like psychedelic mind blowing. Does Hughes live in an alternate universe? Oh that’s right, he’s in the back pocket of teacher$’ union$ and is $imply their tool…
Read More “Philly State Senators Want to Slap Marcellus Industry with 9.9% Tax”
Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Research | Statewide PA | Sunoco Logistics

New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA
February 6, 2015February 6, 2015

Sunoco Logistics has an important new tool in its fight to build the Mariner East 1 and Mariner East 2 pipeline projects in Pennsylvania. Mariner East 1 is already partially up and running but needs the final leg completed that will connect it to the Marcus Hook refinery near Philadelphia (see Range Cuts 2015 Drilling Budget 33%; Mariner East Up & Running!). Mariner East 2 is still on the drawing board. It will be a new 350-mile pipeline, most of it laid next to Mariner East 1 (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The new tool? Sunoco hired Econsult Solutions Inc. to do a proper, independent, rigorous and accurate study of the potential economic impact from the two projects on the PA economy. The study, titled “The Economic Impact of Sunoco Logistics’ Mariner East Projects in Pennsylvania” (full copy embedded below), says the two projects will add $4.2 billion to Pennsylvania’s economy, support more than 30,000 jobs during the construction period, and create 300-400 permanent jobs…
Read More “New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA High Tax Game Plan: Keep Impact Fee, Add Severance Tax To It!
February 5, 2015February 5, 2015

Here’s how tax-devouring Democrats and RINOs in Pennsylvania plan to pass a Marcellus-killing severance tax: Step 1: Keep the impact fee (which is really a tax) in place, which amounts to the revenue that a 2% 3.2% severance tax would raise. Never mind the state’s corporate income tax more than makes up the other 3% of a proposed 5% severance tax. The media, and politicians, intentionally ignore that inconvenient truth. [UPDATE: MDN has it from a highly-placed and trustworthy source that impact fees now being paid by drillers are actually closer to a 3.2% severance tax, not 2% as we previously noted.] Step 2: Introduce a severance tax bill of 3.2% severance tax bill, offered as a “compromise” that lets local communities keep their 60% of the impact fee, but steals money from landowners and drillers (the other 3.2%) to give to teachers’ unions, feeding the beast to keep it at bay (and to pay back a campaign debt). Step 3: After a year or two, when it’s apparent that Harrisburg’s continuing out-of-control spending hasn’t been reigned in and drilling slows down so there’s less tax revenue coming in, just goose the 3.2% tax all the way up to 5% or higher. That’s the plan of Reps. Gene DiGirolamo, R-Bensalem; Tom Murt, R-Hatboro; Harry Readshaw, D-Pittsburgh; and Pam DeLissio, D-Philadelphia as they introduce their “fair and reasonable” 3.2% severance tax bill…
Read More “PA High Tax Game Plan: Keep Impact Fee, Add Severance Tax To It!”
Dauphin County | Dominion Energy | Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Statewide PA | Supply Chain

Dominion Selects PA Company to Manufacture 540 Miles of Pipe
February 5, 2015February 5, 2015

Keepin’ it in the family. Love it. Dominion plans to build the Atlantic Coast Pipeline–a 550-mile, $5 billion natural gas pipeline that will flow, cheap, abundant, clean-burning Marcellus Shale gas from West Virginia into Virginia and North Carolina (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). Provided the Federal Energy Regulatory Commission (FERC) approves it, construction will begin in 2016. Yesterday, Dominion announced that a Pennsylvania company near Harrisburg–Dura-Bond–has been selected to manufacture 540 of the 550 miles of the pipe needed for the project. It is, according to Dura-Bond, the largest order in the company’s history. The announcement doesn’t disclose the terms of the deal, but we do know it will generate 150 new jobs at Dura-Bond and inject a huge amount of money into the Harrisburg-area economy starting later this year. American/Pennsylvanian jobs, American/Pennsylvanian company. All in the heart of the Marcellus…
Read More “Dominion Selects PA Company to Manufacture 540 Miles of Pipe”
Energy Companies | Pennsylvania | Southwestern Energy | Statewide PA | Susquehanna County | WPX Energy

WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern
February 3, 2015February 3, 2015

WPX Energy announced yesterday they have completed the sale and transfer of some 46,700 acres of leases and 63 operational Marcellus Shale wells in northeastern Pennsylvania to Southwestern Energy. MDN first told you about the $300 million deal in early December (for details and a map, see: First Shoe Drops: WPX Sells 1/2 Marcellus Assets to Southwestern). As we said at the time, that was the first shoe. We’re still waiting for the other shoe. WPX owns acreage and/or wells in Centre, Clearfield and Westmoreland counties, in southwestern PA. According to WPX spokesperson Susan Oliver-Stough, the company is actively shopping those assets too. When sold, WPX’s presence in northeast shale drilling will be done…
Read More “WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern”
Industrywide Issues | Landfills | Pennsylvania | Regulation | Statewide PA

PA DEP Looks Ahead 1,000 Yrs, Changes Landfill Rules for Cuttings
February 3, 2015February 3, 2015

Citing concerns over radon, the Pennsylvania Dept. of Environmental Protection “quietly” change the rules on Marcellus drillers near the end of last year with respect to disposing of shale cuttings at landfills. Starting on Jan. 1 of this year, landfills must move to a monthly, instead of annual, limit on how much “radioactive waste” they accept from drillers in the form of cuttings (leftover rock and dirt). The new standard is calculated so that a person living 1,000 years from now in a house built on the landfill would not be exposed to levels of radiation over what is considered safe today. Nice to know the DEP is always thinking ahead, a thousand years…
Read More “PA DEP Looks Ahead 1,000 Yrs, Changes Landfill Rules for Cuttings”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Towns Don’t Like Gov. Wolf’s Severance Tax Plan
February 3, 2015February 3, 2015

As newly enthroned PA Gov. Tom Wolf considers his misguided attempt at ramming through a Marcellus Shale-killing severance tax, he better talk to PA’s townships–all of which receive at least some money from the current impact fee. If the state suddenly yanks away impact fee revenue from those towns, many of which rely on that money in their annual budgets, Moody’s Investors Service says such an event will be “a credit negative” for those local governments. In other words, you can expect a Moody’s downgrade–making any bonds issued by PA towns more expensive, requiring more taxpayer money to pay back…
Read More “PA Towns Don’t Like Gov. Wolf’s Severance Tax Plan”
Bradford County | Greene County (PA) | Industrywide Issues | Lycoming County | Pennsylvania | Public Opinion | Research | Statewide PA | Washington County

Report: PA’s Youth Not Impressed with Marcellus Industry
February 3, 2015February 3, 2015

A little over a week ago The Center for Rural Pennsylvania, a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly, published the third report in a series of studies commissioned on the Marcellus Shale and its impact on the state (see New Report: Marcellus Shale Drilling’s Impact on PA Schools). The Center has just published a fourth report. Titled “Youth Perspectives on Marcellus Shale Gas Development: Community Change and Future Prospects” (full copy embedded below), the new report tackles the topic of youth attitudes toward the industry. In a quick pass, it seems PA’s youth are not all that impressed with the industry and what it has to offer them. They don’t like the traffic and noise and believe in some places shale drilling has detracted from the natural beauty of the countryside and harmed wildlife…
Read More “Report: PA’s Youth Not Impressed with Marcellus Industry”
Industrywide Issues | Pennsylvania | Research | Statewide PA | Wastewater

What Does Marcellus Wastewater Disposal Look Like in 10-15 Years?
February 2, 2015February 2, 2015

An interesting and well-written article appears in the Pittsburgh Tribune-Review on the topic of disposal and recycling of frack wastewater. Once upon a time drillers in Pennsylvania would send frack wastewater to the local municipal sewage treatment plant. That ended in 2011 under Dept. of Environmental Protection Secretary Michael Krancer (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). Today, some 90% of frack wastewater, which includes both flowback (the stuff that comes back out of the hole for the first couple of weeks following a frack job) and produced water (the naturally occurring water from the depths that continues to come out after the initial frack job), is recycled and used for more fracking. But according to experts quoted, that can only go on for perhaps another 15 years. What happens after that? How do Marcellus/Utica drillers dispose of wastewater when there’s more than they can reuse?…
Read More “What Does Marcellus Wastewater Disposal Look Like in 10-15 Years?”
CNG/LNG | Economic Impact | Exporting | Industrywide Issues | Pennsylvania | Processing Plants | Statewide PA

PA-Based Air Products Wins Another Gulf LNG Plant Contract
January 30, 2015January 30, 2015

Air Products is a Wilkes-Barre, PA manufacturer that builds huge rocket-looking “production trains” or “heat exchangers”–pieces of equipment that turn natural gas into liquefied natural gas, or LNG. Last September, Air Products signed a deal to produce two heat exchangers for an LNG export plant in Texas (see Air Products Wins Contract for TX LNG Plant, Marcellus Connection?). They’ve done it again! Air Products announced Wednesday they’ve signed another agreement–this one is to produce three heat exchangers for the Cameron LNG Liquefaction Project, located in Hackberry, Louisiana. As with the Texas plant, we believe there’s a connection to the Marcellus in this new sale…
Read More “PA-Based Air Products Wins Another Gulf LNG Plant Contract”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Gov Wolf Signs Exec Order to Ban Drilling Under State Land
January 29, 2015January 29, 2015

Pennsylvania Gov. Tom Wolf is, disappointingly, keeping campaign promises to his anti-drilling supporters. Today he will make a trip to Benjamin Rush State Park in northeast Philadelphia to sign an executive order to prohibit (for now) any more leases for drilling under (not on) state-owned land. The move is creating child-like excitement among far-left “environmentalist” groups like PennEnvironment–well known for rabid anti-drilling activities. You may recall two governors ago Democrat Gov. Ed Rendell was hell bent for leather in leasing state-owned land for drilling ON said land. After his voracious appetite for money was sated and his Democrat cronies in the legislature spent all $444 million of it, Rendell tried to pretend that he’s an environmentalist by slapping an executive order–a moratorium–on any more leasing of state-owned land. Hypocrite. Last year Gov. Tom Corbett lifted that moratorium with an executive order of his own so that another $75 million of badly needed revenue could be raised by leases for drilling under (not on) state land. Today, Gov. Wolf will turn down that $75 million with an executive order of his own for purely political pandering reasons. How utterly disappointing (but not surprising)…
Read More “PA Gov Wolf Signs Exec Order to Ban Drilling Under State Land”
Allegheny County | Lease & Royalty Payments | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Pittsburgh Private Equity Fund Looks to Lease in Marcellus/Utica
January 28, 2015January 28, 2015

Not everyone is sitting on the sidelines during the downturn in shale drilling in the northeast. And yes, there is no doubt there’s been a downturn, along with the dropping price of gas (and oil). Ridgetop Capital, located in the Pittsburgh area, has just raised it’s sixth round of private investment capital (cash from wealthy people)–a huge $200 million. Ridgetop’s owner, Brad Carpenter, is now on the prowl to snap up Marcellus and Utica Shale leases that he hopes to get at a bargain because of the slow-down…
Read More “Pittsburgh Private Equity Fund Looks to Lease in Marcellus/Utica”