Statewide PA

Pennsylvania | Statewide PA

New Book: The Law of Oil & Gas in Pennsylvania
November 3, 2014November 3, 2014

The Pennsylvania Bar Institute (no…silly, not the drinking kind of bar, the practicing law kind of bar!) recently published the first comprehensive book on oil and gas law in the Keystone State since the Marcellus Shale revolution began less than 10 years ago. The 494-page books is “meticulously researched” by 28 authors (at least one of whom subscribes to MDN) who wrote 21 chapters that span the history of PA’s oil and gas law (did you know the very first oil well drilled in the U.S. was drilled in PA?) to the recent decision by the PA Supreme Court with regard to the Act 13 law that gutted the zoning provisions of the law. It’s all in there. Here’s an overview…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Delaware Riverkeeper Sues to Stop Fracking Under PA State Land
October 31, 2014October 31, 2014

The litigious (and arrogant) Maya van Rossum, aka THE Delaware Riverkeeper, is hoping that lightening, in the form of a lawsuit, will strike twice. The Delaware Riverkeeper was party to the tragedy that overturned a large portion of the 2012 Act 13 drilling law (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The decision made by the PA Supreme Court was a bad one, based on brand new so-called environmental rights that didn’t previously exist. It was also based on the false premise that oil and shale drilling are inherently harmful to the environment (see Industry Vet Points Out Error in PA Supreme Court Act 13 Ruling). We have more than 60 years of active drilling/evidence that says the practice is safe. But we digress. PA Gov. Tom Corbett plans to expand a program already underway in the state to allow a teeny tiny bit more drilling under PA’s state forests. Ms. Rossum is determined to stop it…
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Energy Services | Pennsylvania | Statewide PA | UIL Holdings

Mayor Nutter, State PUC Attempt CPR on Dead PGW Deal
October 31, 2014October 31, 2014

The corrupt Philadelphia City Council killed the sale of the municipally-owned Philadelphia Gas Works earlier this week (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). PGW is bleeding money and rates for residents are sky high, in no small part because they still buy their gas from the Gulf Coast instead of getting it from the nearby (and super cheap) Marcellus region in their own state! What’s next in the process? Philly’s Democrat Mayor, Michael Nutter, along with the state Public Utility Commission (PUC), haven’t quite given up on the deal–not yet. They’re bringing enormous pressure on council members to at least take a vote, something Council President Darrell Clarke has been unwilling to do. The PUC had been waiting to conduct hearings on PGW because of the impending sale. With the sale off, the PUC is turning up the heat and will hold hearings in the next two weeks to demand answers from PGW (and Council) on how they’ll fix the mess they’ve created…
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Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Mariner East NGL Pipeline Begins Tests in Lebanon, PA
October 30, 2014October 30, 2014

It’s funny how reading anti-drilling media reports you get the impression that projects like Sunoco Logistics’ Mariner East Pipeline may be in jeopardy. The pipeline runs 300 miles from the western edge of Pennsylvania (and beyond) to southeastern PA in the Philadelphia area–to the Marcus Hook refinery. The pipeline, which will flow ethane and propane (natural gas liquids) is already in the ground except for a few miles in western PA. The only thing needed is approval to build 18 pump stations and 17 valve control stations in 31 municipalities along the route. Some of the municipalities are resisting by throwing up legal roadblocks (see West Goshen’s Legal Shenanigans Try to Block Mariner East Pipeline). Meanwhile, Sunoco plows ahead and has started testing the pipeline, to get it ready to go. In other words, this is not a question of if, it’s a question of when…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Pennsylvania | Regulation | Statewide PA | Wastewater

PA Dem Congressman Demands Info from DEP on Frack Waste
October 30, 2014October 30, 2014

An anti-drilling Pennsylvania Democrat Congressman, Matt Cartwright, believes Washington, DC and not the individual states should be the ones regulating shale oil and gas drilling. So Cartwright, under the pretense of seeking information, has sent a letter to the acting Secretary of the PA Dept. of Environmental Protection (DEP) seeking information on how the state oversees frack waste disposal (wastewater and drill cuttings). Cartwright is the just the latest PA Democrat to bash away at the single industry keeping the PA economy out of the economic crapper. Cartwright, in his letter, refers to the flawed “report” from another high profile PA Dem who is critical of the industry, state Auditor General Eugene DePasquale (see Anti-Drilling PA Auditor General Criticizes DEP in “Report”)…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy | Statewide PA | UGI Energy Services

Spectra Energy Becomes 6th Partner in PennEast Pipeline Project
October 30, 2014October 30, 2014

The more the merrier. The quintet of companies who are partnering to build the 100-mile PennEast Pipeline from northeastern PA to Trenton, NJ has turned into a sextet. Large regional utility company UGI has been/continues to be the lead company building the pipeline (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The other original investors were AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries. In September, the four original partners were joined by PSEG Power, New Jersey’s largest utility (see NJ’s Largest Utility Becomes 5th Partner in PennEast Pipeline). Now it’s partner number six: Spectra Energy…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UIL Holdings

Philly City Council Kills the Phila. Gas Works $1.86B Deal
October 28, 2014October 28, 2014

There’s a reason Philadelphia has the reputation of being one of the most corrupt cities in America–because it is. We have proof. Back in March of this year, after a long, hard process, the Democrat Mayor of Philly, Michael Nutter, announced a deal to sell the municipally-owned (and bleeding money) Philadelphia Gas Works to UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility holding company (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). The deal would have injected $424 million into the city’s failing pension fund. It was a win/win all the way around. What did the corrupt City Council do? Diddle around, giving special interests time to mount opposition (see Philly City Council Continues to Diddle Around on PGW Sale). Yesterday the corrupt City Council announced they were killing the deal Nutter, one of their own, worked so hard to negotiate…
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CNG/LNG | Industrywide Issues | Ohio | Pennsylvania | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

Regional LNG Plant, Filling Stations Coming to Pittsburgh Region
October 28, 2014October 28, 2014

A man with a long history of projects and companies dealing in LNG (liquefied natural gas) and CNG (compressed natural gas), Robert E. Petsinger, has announced he’s putting together financing for a $440 million company that will (a) build a regional LNG production plant along the banks of the Ohio River somewhere near Pittsburgh, and (b) build 50 LNG and LNG-derived compressed natural gas stations within a 500-mile radius of Pittsburgh. The reason for the location? To use cheap, abundant, locally mined Marcellus Shale gas. Given Petsinger’s history, this is no blue flame pipe dream. You can take it to the bank…
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Pennsylvania | Statewide PA

MSC Releases New Video – “Shale: Unifying America”
October 24, 2014October 24, 2014

Want to watch a video that makes you feel good (and chokes you up) all at the same time? Following its annual meeting this week, the Marcellus Shale Coalition (MSC) released a new year-in-review video titled Shale: Unifying America. “This video highlights and reflects the game-changing benefits tied to safe, job-creating shale development for our communities, the entire Commonwealth and our nation,” said MSC President Dave Spigelmyer. “Shale truly is, in every sense, strengthening and unifying our nation, and our industry is deeply committed to and focused on ensuring that these opportunities are fully realized for Pennsylvania families and small businesses.” Take 9 minutes to watch it here…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Law: PA Monthly Production Reports Starting in 2015
October 23, 2014October 23, 2014

On Tuesday MDN told you about two new bills passed in the Pennsylvania legislature–one that will move oil and gas reporting from every six months to every month, the other that requires drillers who have leases expire to issue a “surrender document” as proof the lease has ended (see 2 Bills on PA Gov’s Desk: Monthly Production #s, Lease Termination). Both bills where authored and sponsored by Rep. Tina Pickett (Republican, Bradford/Sullivan/Susquehanna). Good news for landowners–Gov. Tom Corbett signed both bills into law yesterday. Beginning next year (March 31, 2015), PA will move from semi-annual to monthly production reports…
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Chevron | Education | Energy Companies | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Chevron Launches Appalachia Partnership Initiative with $20M
October 22, 2014October 22, 2014

Kudos to Chevron. Yesterday the company announced $20 million in grants for education and workforce development in 27 counties across Pennsylvania, West Virginia and Ohio. Called the Appalachia Partnership Initiative, Chevron aims to fund education (for students) and training (for workers) in STEM–Science, Technology, Engineering and Math. A variety of programs and organizations will be the recipients of Chevron’s largess…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

2 Bills on PA Gov’s Desk: Monthly Production #s, Lease Termination
October 21, 2014October 21, 2014

A pair of bills recently passed both the Pennsylvania House and Senate now sit on Gov. Tom Corbett’s desk that are sure to delight landowners and (likely) frustrate drillers. The prime sponsor and author of both bills is PA Rep. Tina Pickett (Republican, Bradford/Sullivan/Susquehanna). House Bill (HB) 2278 will require drillers to file monthly production numbers with the Dept. of Environmental Protection. They currently file every six months. The second bill, HB 402, requires a driller to present a “recordable surrender document” to a landowner within 30 days of a lease cancellation/termination. With such a document, landowners know for sure, they have proof, that they can re-lease with someone else if they so choose…
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Aqua America | Energy Services | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Supply Chain

Water Pipelines for Drillers Great Idea, But Few & Far Between
October 21, 2014October 21, 2014

An excellent article appears in today’s Pittsburgh Post-Gazette, written by one of the few (perhaps only) reporters they have who is objective when it comes to writing about the natural gas industry: Anya Litvak. Anya used to write for the Pittsburgh Business Times before the Post-Gazette poached her. Anya’s article addresses the issue of using water pipelines to feed the growing demand for water used by shale drillers. It’s a win/win because it tends to be cheaper and it reduces truck traffic. However, the up-front cost to build a pipeline (on the part of a water company) is not cheap and many drillers aren’t willing to commit to the 3-15 year term that water utilities want to have before they are willing to build such a pipeline. As part of the article we get this interesting update on PA water company Aqua America…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Taxation

New PA Legislation SB 1499 Would Stop Many Pipeline Projects
October 16, 2014October 16, 2014

In a cleverly disguised move to stop Marcellus drilling, two Philadelphia-area state senators–Andy Dinniman (Democrat, Chester) and John Rafferty (RINO, Montgomery)–have teamed up to introduce legislation, Senate Bill (SB) 1499 (full copy below) that would assess an “impact fee” on new pipelines and possibly existing pipelines re-purposed for a different use. The pipelines getting this new fee are pipelines that specifically carry natural gas, NGLs or oil (other pipelines don’t count). The fee would only be assessed on pipelines in what they define as “high-consequence areas” like, you know, the Philly area. Places with lots of residences and businesses. You live in the sticks? They don’t care. You don’t get nuthin. You live someplace “important” like Philly? Soak ’em. Similar to the current drilling impact fee part of Act 13 (this is what’s clever), the money raised stays local–50% of it to the county, 40% to the town/city where the pipeline runs, and 10% to the state Public Utility Commission. How much of this new “impact fee” does the landowner get–the people who are most inconvenienced by having the pipeline? 0%…
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Allegheny County | Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Odebrect Cracker Aims to Attract Chemical/Plastics Manufacturing
October 16, 2014October 16, 2014

David Peebles, Odebrecht’s vice president of business development and the guy working to make the $4 billion ethane cracker and petrochemical plant project in Parkersburg, WV a reality, gave some great insights into just how vast and complex a process building that plant is. Speaking yesterday at the Penn State Natural Gas Utilization Conference in Southpointe, PA, Peebles said…
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Energy Companies | Pennsylvania | Statewide PA | WPX Energy

WPX Marcellus Assets Being Shopped in “Controlled Auction”
October 15, 2014October 15, 2014

As MDN has pointed out for some time now, Elvis, er um, WPX has left the building. Meaning WPX, although finishing up wells already permitted and started in the Marcellus–will not drill any new wells in the Marcellus. Does that mean landowners should be concerned that WPX will sell their already-drilled (and producing) wells in the Marcellus? In February, WPX spokeswoman Susan Oliver told MDN the company is definitely not selling their already drilled wells–100 of them or so (see WPX Gives MDN an Update on Their 2014 Marcellus Plans). However, an analysis by a trusted energy analyst has us wondering…
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