Statewide PA

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…
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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…
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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?…
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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…
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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)…
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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…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Research | Statewide PA

Anti-Drilling Environment America Issues “Report” of Top Violators in PA
January 28, 2015January 30, 2015

Looky here–another new “report” has just been issued by yet another anti-drilling organization. Must be time for a new fundraising campaign. The far-left, anti-fossil fuel Environment America (aka PennEnvironment) has just released a sham “report” titled “Fracking Failures: Oil and Gas Industry Environmental Violations in Pennsylvania and What They Mean for the U.S.” (full copy below). The “report” claims, “Fracking operators in Pennsylvania have committed thousands of violations of oil and gas regulations since 2011. These violations are not ‘paperwork’ violations, but lapses that pose serious risks to workers, the environment and public health.” The “report” was authored by a lawyer and a journalist, both anti-fossil fuelers that use fossil fuels every day of their lives, and funded by the Colcom Foundation–a far-out organization dedicated to removing the “scourge” of humankind from the face of the earth (and no, we’re not making it up). This latest “report,” which will no doubt be reported by sycophants at places like StateImpact Pennsylvania as “news,” claims that Cabot Oil & Gas is the number one violator of the environment in Pennsylvania. The “report” also throws heaps of mud on the Center for Sustainable Shale Development and the four companies that have endorsed the CSSD’s strict operating standards…
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Education | Industrywide Issues | Pennsylvania | Research | Statewide PA

New Report: Marcellus Shale Drilling’s Impact on PA Schools
January 28, 2015January 28, 2015

The Center for Rural Pennsylvania, a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly, has just published the third report in a series of studies commissioned on the Marcellus Shale and its impact on the state. Titled “Marcellus Shale Gas Development and Impacts on Pennsylvania Schools and Education” (full copy embedded below), the report looks at whether or not the rapid development of shale drilling in the state has stressed local schools in areas with the most Marcellus Shale drilling. It was feared that with an influx of workers, and potentially families, local schools would see a spike in enrollment. The report says that hasn’t happened. There was also a concern about dropout rates–perhaps kids leaving school early to work in the gas fields. That hasn’t happened either. In fact, if anything, the Marcellus has contributed more money to the coffers of local schools. No negative impacts, lots of positive impacts from northeast shale drilling…
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Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA | Taxation | Washington County

The Tax Man Returneth — for PA Landowners with Royalties
January 27, 2015January 27, 2015

Landowners who get royalty checks in Pennsylvania beware: the PA tax man may be coming for you. It’s a shame, but landowners who get royalty checks have to employ a bevy of accountants and tax experts in order to file a tax return. Such is life. One of the deductions landowners take from their royalty checks are for production costs. On paper, a landowner may be paid 14% in royalties, but in actuality it works out to be much less. Landowners have to navigate sometimes confusing statements from drillers to put the right numbers in the right boxes. What’s happening now is that the PA Dept. of Revenue is telling some landowners the numbers in the boxes don’t add up–according to their convoluted calculations anyway. And PA wants some of that money back they say should have been paid to them all along. It’s a confusing mess…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Guest Post: Bradford Co Landowner Asks Gov. Wolf to Support HB 1684
January 27, 2015January 27, 2015

MDN has written plenty about Pennsylvania’s HB 1684–the Guaranteed Minimum Royalty Act (see these MDN articles). In essence, some companies (cough *Chesapeake Energy* cough) have gotten creative with deducting post-production costs from royalty checks. According to the PA Guaranteed Minimum Royalty Act of 1979, royalty owners (landowners) must receive no less than 1/8, or 12.5%, by law. But when Chessy and others start deducting this and that, never spelled out in the original lease agreement, landowners are getting the shaft–way lower than 12.5%. In some cases they get royalty checks for a few dollars! Bradford County landowner John Williams is concerned, both about HB 1684 and newly elected Gov. Tom Wolf’s stand on that bill, and about Wolf’s proposed 5% severance tax. Will the severance tax be the next deduction gas companies take, further reducing royalty checks? Is the severance tax Tom Wolf proposes a tax that will be paid, in essence, by landowners? We thank John for his guest post…
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Commodity Price | Industrywide Issues | Pennsylvania | Statewide PA

MSC & PIOGA: Marcellus Drilling is Scaling Back “Significantly”
January 26, 2015January 26, 2015

What’s the prognosis for new drilling activity in the Marcellus Shale? Two industry leaders gave a sobering assessment to the Philadelphia Inquirer. Dave Spigelmyer, president of the Marcellus Shale Coalition (MSC) and Lou D’Amico, president of the Pennsylvania Independent Oil and Gas Association (PIOGA) spoke frankly about where drilling is scaling back (more so in the wet gas areas than the dry gas areas, but dry gas still affected too), and when the outlook is likely to improve (not any time soon)…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Drillers Take Aim at Pat Henderson’s Move from Govt to MSC
January 26, 2015January 26, 2015

A new hit piece from the drive-by Democrat propagandists known as PBS StateImpact Pennsylvania. Patrick Henderson, formerly PA Gov. Tom Corbett’s Energy Executive, has had the unmitigated gall to land on his feet in a new job–now gainfully employed by the Marcellus Shale Coalition as its Director of Regulatory Affairs. StateImpact is dutifully reporting the Democrat talking points that this “proves” the Corbett administration was in bed with drillers all along. Meanwhile, John Quigley once worked for Ed Rendell and later went to work for Big Environment–an anti-drilling group known as PennFuture–after he left being Secretary of the Dept. of Natural Resources in PA. But not a peep from StateImpact on how that “proves” the Rendell administration was in bed with anti-frackers. Quigley has just been recycled by Tom Wolf (Wolf’s administration increasingly looks like the third term of the Rendell administration) to head the Dept. of Environmental Protection (DEP). No speculation from StateImpact about how Quigley may be “in bed” with the enviros as he assumes his vital-to-the-Marcellus-industry post at the DEP. Nope. Just another day slavishly regurgitating the Dem talking points…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Anti Group Asks PA Court for a Do-Over on State Land Drilling Decision
January 23, 2015January 23, 2015

Earlier this month we reported the crushing defeat of the litigious anti-drilling group Pennsylvania Environmental Defense Foundation (PEDF) in their lawsuit that attempts to stop all drilling and leasing of state-owned lands for oil and gas drilling (see PA Court Rules to Allow More Leasing/Drilling of State-Owned Land). Even though it was a victory for pro-drillers, it was a “dirty” win because it relied on and reinforced the flawed PA Supreme Court “Robinson” case on Act 13 zoning (see Troubling Win in PA Court Victory that Allows State Land Drilling). The litigious PEDF is back to take yet another bite at the apple. They’ve filed an “Application for Reargument” in the case. They want the judge to call a “do-over” so they can try, once again, to ban drilling on state-owned land…
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Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA Senate Reintroduces Two Marcellus Royalty Bills, SB 147 & 148
January 22, 2015January 22, 2015

The “funny business” of shorting royalty checks in Pennsylvania–particularly by Chesapeake Energy–may soon come to an end. A pair of bills that didn’t make it past the House last session have been re-introduced in the Senate and both have already passed the Senate Environmental Resources and Energy Committee unanimously. State Sen. Gene Yaw, Republican from northeast Pennsylvania, re-introduced Senate Bills (SB) 147 & 148. SB 147 allows landowners the right to review drilling company records to verify proper royalty payment. It also requires drillers to pay royalties within 90 days of production. SB 148 prohibits drillers from “retaliating” against a landowner who questions royalty payments by canceling the lease or stopping drilling activity. Both bills are embraced by the Pennsylvania chapter of the National Association of Royalty Owners (NARO)…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Important Expose on John Quigley, Nominee to Head PA DEP
January 22, 2015January 22, 2015
MDN friend Tom Shepstone, who writes the excellent Natural Gas Now blog site, has just posted a must-read article on John Quigley, PA Gov. Tom Wolf’s choice to lead the Dept. of Environmental Protection. Tom does some real investigative journalism–something you won’t read in the Harrisburg Patriot-News, the Philadelphia Inquirer, or Democrat Party satellite publications like StateImpact Pennsylvania. You certainly won’t read anything detailed about Quigley in the Scranton Times-Tribune! Real investigative journalism has gone out of vogue in those publications. But not with Tom. Rather than copy his excellent work here, we’ll ask you to click on the link below and take time to educate yourself on the “real” John Quigley.
- Natural Gas Now/Tom Shepstone (Jan 21, 2015) – Will the Real John Quigley Please Stand Up?
Anti-Drilling/Fossil Fuel | Dauphin County | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Fracking Protesters Spoil PA Governor Inauguration Ceremony
January 21, 2015January 21, 2015

Yesterday, Democrat anti-drilling protesters spoiled the inauguration of one of their own–Pennsylvania Gov. Tom Wolf (Democrat, wants to tax the shale drilling industry into oblivion). There were “more than 100” very loud demonstrators outside of the inauguration according to the AP, which in partisan liberal math translates into “several hundred” protesters for PBS’s StateImpact Pennsylvania. Eight of these ill-behaved children adults were were so loud and obnoxious Pennsylvania State Police arrested and removed them. Two of them stood up during the inauguration speech hollering “ban fracking now” and were removed by State Police. The “ban fracking now” chant could be heard throughout the inauguration–spoiling the ceremony for everyone. According to those who organized this shameful performance, they were emboldened by New York’s recent ban–hoping if they can make enough noise and throw enough temper tantrums, they’ll get PA to ban it too. (Hey, it worked for them when they were children, why wouldn’t it work now?)…
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