Statewide PA

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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Anti-Drilling/Fossil Fuel | Erie County (NY) | Industrywide Issues | New York | Pennsylvania | Potter County | Statewide PA | Tioga County (PA)

MDN Prediction Comes True: Anti Criticizes Bills Sale to Fracker
October 15, 2014October 15, 2014

Just last week, with respect to the sale of the Buffalo “Marcellus” Bills to East Resources CEO Terry Pegula, we said the following tongue-in-cheek: “What’s interesting to us is that there’s zero talk about how Marcellus “blood money” has purchased the Bills. No talk that Pegula is an evil, nasty fracker….The talk, universally, is of a really great guy with a big heart that’s whip smart and committed to the Buffalo region (he previously bought the NHL Buffalo Sabres team). Where are the crazies and their loony toons criticisms? Where are the protesters? Nowhere to be found” (see Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Well, such a loon has now been found, and a Wilkes-Barre newspaper published his rantings…
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About MDN | Economic Impact | Industrywide Issues | Maryland | MDN Resources | New York | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide MD | Statewide NY | Statewide OH | Statewide PA | Statewide VA | Statewide WV | Virginia | West Virginia

MDN Research: $58B in NE Infrastructure Projects, List of Top 5
October 14, 2014October 14, 2014

Marcellus Drilling News collaborates with the excellent ShaleNavigator service to publish a series of research reports called the Marcellus and Utica Shale Databook. MDN editor Jim Willis is very excited to announce that Volume 2 for the 2014 Databook series has just been released–and it is, without question, our best-ever. Among the pearls in this newest edition: Jim completely updated a comprehensive list of Marcellus/Utica Shale midstream and infrastructure projects (pipelines and processing plants) that first appeared in Vol. 2 of last year’s series. At that time, in 2013, projects either under construction or planned added up to a staggering $40 billion of investment coming to the northeast. This year? It’s even more mind-blowing. Infrastructure projects planned for the northeast now tally $58 billion–a 45% increase! Read on for the list of the top 5 big-money projects planned for the Marcellus/Utica…
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Crestwood Midstream | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

Crestwood Midstream Marcellus Volume Up 10%, New NEPA Pipeline
October 14, 2014October 14, 2014

Crestwood Midstream filed their latest quarterly operations update yesterday, for third quarter 2014. Crestwood has pipeline gathering/processing systems in three major U.S. shale gas plays: the Marcellus, the Niobrara and the Barnett. They also have an oil pipeline gathering system in the Bakken Shale. The Marcellus is the largest of their natgas gathering systems, and according to the update, flows for the Marcellus system were up another 10% in 3Q14. At one point, the system hit a new daily average high of 700 million cubic feet per day (Mmcf/d). With a couple of new compressor stations coming online, the system will have a capacity of 875 Mmcf/d…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Corbett Starting to Cave on Taxing Natgas? Sort of…
October 14, 2014October 14, 2014

In a fight for his political life, PA Gov. Tom Corbett is dipping his toe in waters he has, until now, not been willing to enter. In an interview with the anti-drilling PBS reporters at StateImpact Pennsylvania, Corbett talked about the possibility of a “transmission tax” on natural gas. He still doesn’t support a severance tax (thank God), but he is talking about a new tax on gas flowing through pipelines in the state. Dangerous talk, if you ask us. Corbett’s best shot at re-election is to NOT cave on the issue of unfairly taxing the drilling industry so grubby politicians in Harrisburg can redistribute the wealth, spending it on their own pet projects (pork barreling)…
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Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Statewide PA | Tioga County (PA) | Washington County | Wastewater

Second Generation Wastewater Impoundments – Truly Safe?
October 13, 2014October 13, 2014

Little did we know it at the time, but former PA Dept. of Environmental Protection Chris Abruzzo’s last public interview was granted to MDN editor, Jim Willis, just three weeks ago before Abruzzo resigned (see PA DEP Sec. Abruzzo’s Last Public Interview…with MDN). Topic A that Jim asked Sec. Abruzzo was about the recent record fine of Range Resources ($4.15 million) for a series of leaky wastewater impoundments. Abruzzo stated during that interview, several times, that newer “next generation” impoudments have come along that are much safer. What are these “next generation” impoundments and are they really safer?…
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Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Susquehanna County

Important Landowner/Driller Case Heads to PA Supreme Court
October 13, 2014October 13, 2014

A Pennsylvania landowner signed a lease with Cabot Oil & Gas in 2007. Part of the way through the lease, before Cabot initiated drilling, the landowner sued Cabot to dissolve the lease, citing certain reasons that they believe justified that action. The case went to court and the court eventually threw out the landowner’s case, meaning the lease is still in effect. Cabot then filed a counterclaim to have the lease term extended, something called an “equitable extension of lease terms.” In other words, once sued, the lease term should go on pause, and because they won, Cabot should then be able to un-pause the lease term and continue (which would otherwise have expired due to the long time it takes for court cases to play out). The court did not grant Cabot’s request and the case has now been appealed all the way to the PA Supreme Court. The decision will set an important precedent for both landowners and drillers…
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CNG/LNG | Exporting | Industrywide Issues | Luzerne County | Pennsylvania | Statewide PA

MSC Pushes Back Against NEPA Newspaper Sham Editorial on Exports
October 9, 2014October 9, 2014

Three cheers for Marcellus Shale Coalition president David Spigelmyer for responding to a bone-headed editorial that recently appeared in the Wilkes-Barre, PA Times Leader castigating potential natural gas exports and denigrating the entire Marcellus Shale industry. The “reporters” of the Times Leader, in their sycophantic zeal and eagerness to obsequiously seek favor with their favorite candidate, Tom Wolf, ran an editorial titled, “Our Opinion: Exporting Pennsylvania’s natural gas to the globe defies good sense” in which they take pot shots at the men and women of the Marcellus along with mis-characterizing the issue of Marcellus gas exports. Mr. Spigelmyer had the ~~balls~~ intestinal fortitude to verbally slap them across the face and tell them to grow up…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Luzerne County | Northampton County | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

Update on PennEast Pipeline–Its Physical & Emotional Path
October 9, 2014October 9, 2014

The anti-drilling nutters at the Sierra Club (we call them Sierra Clubbers, you know, people who like to go “clubbing“?) have apparently polled a new phrase that they think is a winner. They’ve found when you say magic words, like “pipeline x will leave a nasty, ugly scar that’s irreversible” on Old Mother Nature, that gets low information people really fired up. So that’s the new phrase they toss around for projects like the recently announced PennEast Pipeline (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). PennEast will run from Wilkes-Barre, PA all the way to a spot near Trenton, NJ. Communities along the proposed route have been organizing meetings with the express purpose of castigating and ridiculing the proposed $1 billion project. “Not in my back yard!” they yell. The Sierra Clubbers helpfully sprinkle magic words like “scar the earth” which whips them up into even more of frenzy. So UGI and the four other partners in the project have abruptly stopped attending those meetings and will, instead, host their own meetings in an attempt to keep anti-drillers from trying to manipulate people’s emotions. Good for them…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

DEP to DePasquale: Problems Fixed Years Ago, Where Have You Been?
October 6, 2014October 29, 2024

The Pennsylvania Dept. of Environmental Protection (DEP) is, once again, defending itself from baseless allegations from PA’s pro-wind (and anti-natural-gas) Auditor General, Eugene DePasquale (Democrat). As MDN readers know, DePasquale, upon taking office, set out to castigate and denigrate the fine men and women of the DEP by conducting a years long study of the department’s ancient history and then claiming the DEP wasn’t ready to handle the sudden onslaught of Marcellus drilling in the state–as if any department could have foreseen it (see Anti-Drilling PA Auditor General Criticizes DEP in “Report”). Immediately, former DEP secretary, Michael Krancer, identified gaping holes and inaccuracies in DePasquale’s “report” (see Former DEP Sec. Krancer Skewers Auditor General “Report”). Last week DePasquale participated in more Democrat theater designed to shake public confidence in a solid and professional organization, the DEP (see Sleazy: PA Dem Senators Use Unpublished “Study” to Smear Shale Drilling). The DEP said “enough” and called out DePasquale and his continued lies…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Chris Abruzzo Resigns Following Porn Email Scandal
October 3, 2014October 3, 2014

We warned you about Pennsylvania Attorney General Kathleen Kane when she was elected (see Will New PA AG Go After the Marcellus Drilling Industry?). It wasn’t long before she started trolling years-old cases to see what she could turn into big headlines, attempting to damage the Marcellus industry (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). She not only went after the big players like XTO, she’s done her best to shut down smaller players too (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit). Now her latest scalp. She went digging through five year-old computer records and found a couple of emails received and sent that contained porn on the computer of PA state employee Chris Abruzzo, back in 2009, when Abruzzo worked for then-Attorney General (and current Governor) Tom Corbett–long before Abruzzo was appointed as Secretary of the PA Dept. of Environmental Protection (DEP). A week after she started airing her charges to left-leaning media outlets, Abruzzo resigned…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Wastewater

PA DEP Sec. Abruzzo’s Last Public Interview…with MDN
October 3, 2014October 3, 2014

Sadly, Pennsylvania’s Sec. of the Dept. of Environmental Protection, Christopher Abruzzo, resigned yesterday. See our lead story today for the details. Below is a podcast/recording of what MDN believes is Abruzzo’s last publicly recorded interview before he resigned–an interview with MDN editor Jim Willis. The interview was conducted at the Shale Insight event on Wednesday, Sept. 24 at the David L. Lawrence Convention Center in Pittsburgh. It was one day later, on Sept. 25, that news broke of five year-old emails, passed between Abruzzo and friends, that allegedly contained pornographic images. The issue triggered Abruzzo’s resignation yesterday. Regardless of his departure, Jim’s interview concerned important issues for the environment and the drilling industry in PA. Here’s the tough issues Jim tackled during the interview…
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