Statewide PA

Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

Successful Open Season Concludes for Marcellus PennEast Pipeline
September 5, 2014September 5, 2014

Barley three weeks ago a consortium of four companies announced a new pipeline project to carry Marcellus Shale gas from Luzerne County in northeastern Pennsylvania to Transco’s Trenton-Woodbury interconnection in New Jersey. The $1 billion PennEast Pipeline will be built by energy utility giant UGI, along with AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The consortium announced yesterday the successful close of a very fast binding open season–a period of time when potential customers sign on the dotted line to take capacity in the new pipeline. Of course it didn’t hurt that the consortium itself had already reserved nearly half of the 1 billion cubic feet per day capacity for themselves! Still, the other half is now sold out too (a total of 965,000 dekatherms, or 936 million cubic feet, or .936 billion cubic feet)…
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Industrywide Issues | Pennsylvania | Research | Statewide PA

MSC Launches Study on Water Sample Testing & Standards
September 5, 2014September 5, 2014

It’s relatively easy for so-called researchers with an agenda (and backed by Park Foundation money), to manufacture “proof” that shale drilling is evil and harms the environment. Duke University seems to be one hotbed of such so-called research (see Duke Study #2: Drilling Causes Methane Migration in Water Wells?). Cornell University is another Park Foundation funded source of so-called research (see Devastating Critique of New Ingraffea/Howarth Methane Study by EID). Much of that so-called research claims when shale drilling arrives, it causes methane to migrate into nearby water wells. That evil ole methane just can’t help itself! The highly respected trade organization, the Marcellus Shale Coalition (MSC), is tired of waiting for the EPA and others to develop standards that can be used when determining whether or not methane in water was caused by drilling–or far more likely–was there all along…
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Economic Impact | Education | Industrywide Issues | New York | Pennsylvania | Research | Statewide NY | Statewide PA

Penn State to Study Effects of “Mailbox Money” in PA Marcellus
September 3, 2014September 3, 2014

Have you ever heard the phrase “mailbox money” used to describe royalty checks (and singing bonuses) landowners receive for Marcellus Shale wells? We hadn’t either–but apparently that’s the phrase that’s used, somewhat pejoratively, to describe this economic miracle. We wonder how money flowing to snotty rich people who inherited their wealth is described–maybe “lazy money” or “daddy’s money” or “trust fund money”? But we digress. Researchers at Penn State University have received a $150,000 grant (“grant money”) to research whether or not Marcellus money going to previously poor, dumb farmers in PA (our interpretation) makes a difference to the health and well being for the kids in those households, vs. the poor, dumb farmer kids across the border in NY who are kept in poverty by the actions of NY’s governor, Andrew Cuomo, who refuses to allow Marcellus drilling. The study will evaluate whether or not Marcellus money affects a child’s well-being–ranging from behavior, psychological and health factors to school success…
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Allegheny County | Energy Companies | EQT Corp | Industrywide Issues | Landfills | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

SWPA Drillers Seriously Underreport Drill Cuttings at Landfills
September 2, 2014September 2, 2014

We’re not quite sure what to make of this story. The Pittsburgh Post-Gazette, which has trended anti-drilling in recent months, has an article that claims both EQT and Range Resources, among the largest of Marcellus drillers, are underreporting the volume of drill cuttings they send to area landfills in southwest Pennsylvania. EQT is by far the biggest “offender” in the PPG article. According to documents filed with the state Dept. of Environmental Protection (DEP), EQT estimates it sent 21 tons of drill cuttings to landfills in 2013. According to hard copy records from six landfills in SWPA, EQT actually sent 95,000 tons of drill cuttings! Yikes, that’s quite a discrepancy…
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Accidents | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Releases List of Water Wells Impacted by Shale Drilling
August 29, 2014August 29, 2014

Here comes the next media smear campaign. This time the meme is “You know that lie we’ve been telling about how shale drilling contaminates water wells? Well it was true all along. Here’s the proof!” Case in point: The Associate Press has a single, breathless story of a new list just released by the Pennsylvania Dept. of Environmental Protection (DEP) of 243 water wells “contaminated” by Marcellus Shale drilling. We’ve included the list below. These 243 are wells DEP officials believe have been affected by shale drilling after conducting an investigation. Some of the cases are still under investigation but included on the list because the DEP thinks they were likely contaminated by drilling. Is this the smoking gun? Is Marcellus drilling a threat to water after all? As always, MDN is here to provide some much needed perspective…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Anti-Drillers Send PA DEP Letter: You’re Falling Down on the Job
August 29, 2014August 29, 2014

A group of virulently anti-drilling (and anti-fossil fuel) groups sent a nasty-gram letter to Pennsylvania Secretary of the Dept. of Environmental Protection, Chris Abruzzo, essentially telling him he’s not doing is job. The groups, sprearheaded by the wacky Sierra Club, THE Delaware Riverkeeper (the haughty and arrogant Maya van Rossum), and PennEnvironment, cite a completely discredited “report” from the politically-motivated Auditor General, Eugene DePasquale (see Anti-Drilling PA Auditor General Criticizes DEP in “Report”), along with other so-called reports from groups like the half-baked Earthworks, to accuse the DEP of being sloppy, neglectful, obstructionist, or all three. Mainstream media spins this as “environment groups send a letter to the DEP with their concerns.” It’s nothing of the sort. It’s pure horse manure and frankly, meaningless…
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Industrywide Issues | NG Vehicles | Pennsylvania | Statewide PA | Taxation

PA Spending $6M on Program to Convert Vehicles to Natgas
August 29, 2014August 29, 2014

The Pennsylvania Marcellus is a gift that keeps on giving. Pennsylvania Gov. Tom Corbett announced yesterday that the third round of funding from Act 13 funds to convert vehicles to run on natural gas will open tomorrow–August 30th. So far PA has collected over $600 million in “impact fees” from Marcellus drillers under the Act 13 law passed by Corbett early in his administration. Most (60%) of impact fee revenue goes back to the local communities where drilling occurs–to compensate them for the hassles or “impacts” that come with drilling. But 40% of the impact fee money goes to communities (or programs) with no active drilling. We uncharitably call it political walking around money. Necessary to grease the hands of greedy politicians. Some of that walking around money goes to fund the conversion of cars and trucks to run on compressed natural gas–a worthy cause in our opinion. This time around $6 million of impact fee money will go to fund natgas vehicle conversions. Who can apply? Just about anyone–except individuals. It must be a company, non-profit or government agency/entity…
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Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA PUC Appeals Act 13 Case to Supreme Court One More Time
August 29, 2014August 29, 2014

It seems there’s still a bit of unfinished business with the ongoing, never-ending lawsuits around the Act 13 oil and gas drilling law in Pennsylvania. At least one final bit of unfinished business. You will recall that seven selfish towns sued the state over the Act 13 law and it’s provision that would substitute a statewide, uniform and fair set of zoning ordinances for drilling in place of a patchwork, crazy quilt system of local ordinances for oil and gas drilling. These seven selfish towns wanted their own ordinances and sued, ultimately winning at the Supreme Court (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The PA Supremes couldn’t, however, be bothered with deciding every tiny bit of nuance and sent some items back to the lower Commonwealth Court for final decisions. One of those decisions was about whether or not the PA Public Utility Commission (PUC) has the right to review any local oil and gas ordinances for compliance with state standards, making the award of impact fee money to a town based on such compliance. The Commonwealth Court gutted that right, taking it away from the PUC in a July decision (see PA Court Says 7 Towns Can Keep Marcellus Money & Ban Drilling Too). The PUC has appealed that decision back up to the Supremes…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA AG Kane Goes on Witch Hunt of Drilling Industry over Royalties
August 28, 2014August 28, 2014

You can’t say we didn’t warn you. In April MDN warned you that by inviting Pennsylvania’s avowed anti-drilling Attorney General Kathleen Kane (Democrat) to investigate Chesapeake Energy for shorting landowners on royalties, an invitation extended by PA Gov. Tom Corbett and PA Sen. Gene Yaw (both Republicans), they would unleash something far worse than they expected (see PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue). We were right. Word has filtered down that Kane is expanding the scope of her investigation “throughout the energy industry” in PA. Translation: the witch hunt has begun…
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Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

PA Gov Corbett Makes Political U-Turn on Pipeline Project
August 27, 2014August 27, 2014

Last week Pennsylvania Gov. Tom Corbett waded into the thorny issue of whether or not the Federal Energy Regulatory Commission (FERC) should approve the Williams Tranco pipeline expansion project. Dubbed the Atlantic Sunrise project, the $3 billion project which reaches far beyond just PA, would carry PA Marcellus Shale gas to the East Coast and to southern states (see Williams Open House Sheds more Light on Transco Atlantic Sunrise). Last week Corbett sent a letter to FERC asking the feds to look carefully at the Atlantic Sunrise expansion project because he’s hearing a lot of noise from voters about it. He also requested FERC to zoom out and look at the big picture–consider all of the proposed pipeline projects for PA and whether as a whole it makes sense–and not just look at each project individually…
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Energy Companies | Pennsylvania | Statewide PA | Talisman Energy

Talks for Repsol to Buy Some/All of Talisman Energy are “Frozen”
August 27, 2014August 27, 2014

Oh oh. Corporate raider Carl Icahn won’t be happy about this one. MDN told you a month ago that Spanish energy company Repsol was seriously considering buying some, or all, of Canadian company Talisman Energy (see Repsol Eyes Talisman Energy for “Assets” – Takeover Target?). Talisman has substantial Marcellus Shale drilling operations in Pennsylvania. Last October, just as he had previously done with Chesapeake Energy, corporate raider Carl Icahn increased his ownership of Talisman stock (see Carl Icahn Snaps Up 6% of His Next E&P Victim: Talisman Energy). That means big changes are coming for Talisman–and not necessarily good changes. When Repsol came sniffing around everyone thought a deal would be likely. But according to an article in yesterday’s Wall Street Journal, the talks for Repsol to buy some or all of Talisman have stalled. The word they use is “frozen”…
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CONE Midstream | CONSOL Energy | Energy Companies | Industrywide Issues | Noble Energy | Pennsylvania | Pipelines | Statewide PA

CONSOL & Noble Energy Form New Marcellus Midstream Company
August 26, 2014August 26, 2014

Rather than contract with MarkWest Energy, Williams, or another midstream company, CONSOL Energy and Noble Energy, who together have a joint venture to drill in certain areas of the Marcellus Shale (or “upstream” venture), have now decided to form their own “midstream” (or pipeline) company too. Dubbed CONE Midstream–perhaps some weird amalgamation of the CONSOL and Noble Energy names–the new midstream company will take the form of a master limited partnership, or MLP. So far CONSOL and Noble have only filed paperwork and announced who will sell units (rough equivalent of shares of stock). While the announcement from CONSOL doesn’t say who will operate the new midstream company, it sure looks to us like CONSOL will be the one calling the shots…
Read More “CONSOL & Noble Energy Form New Marcellus Midstream Company”
Chesapeake Energy | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Pennsylvania | Range Resources Corp | Southwestern Energy | Statewide PA

PA Production Smashes Record Again – Top 10 Wells, Top 5 Counties
August 25, 2014August 25, 2014

Without a doubt the biggest story from last week, which broke on MDN’s first day off in our one-week vacation, was the new natural gas production numbers coming from Pennsylvania and the Marcellus Shale. The PA Dept. of Environmental Protection released production numbers for the first six months of 2014, which show that PA produced an incredible 1.94 trillion cubic feet during that period–up 14% from the last half of 2013 (1.697 Tcf), and comparing apples to apples, up an astonishing 38% from the same period a year ago, the first half of 2013 (1.406 Tcf). PA also produced 1.7 million barrels of condensate (or natural gasoline) and 182,000 barrels of oil. Below we list the Top 10 producing wells in 1H14. Would it surprise you to learn that 9 of the top 10 are found in the same county, drilled by one company? We also include the full list of all 7,679 wells drilled so far…
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Anti-Drilling/Fossil Fuel | Health Impacts | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DOH “Improves” Enviro Health Complaints Process
August 25, 2014August 25, 2014

A completely manufactured smear campaign by anti-drilling PBS reporters at Pennsylvania StateImpact continues to be joined by other willing, colluding accomplices in mainstream media outlets who accuse the PA Department of Health of either ignoring or intentionally hushing up so-called complaints. MDN previously outlined the chronology of the propaganda campaign by StateImpact Pennsylvania and the pushback by Secretary of Health Michael Wolf (see PA’s Sec of Health Fires Back at Reckless Accusations Against Dept). Because anti-drillers believe they have a winning issue (completely divorced from reality, but that doesn’t stop them), they continue to hammer away. And so, finally, Wolf (and Gov. Tom Corbett’s administration) are now playing defense instead of calling out these sleazeballs and exposing them for the frauds they are. The Dept. of Health has recently introduced “improvements to the environmental health complaint processes”…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Rep White Introduces Bill to Double-Tax Marcellus Drilling
August 14, 2014August 14, 2014

What is it with politicians like PA Rep. Jesse White (Democrat, Washington County) and their need to suck taxes out of any and every business and person they can? White, you may recall, was caught using fake online IDs, pretending to be some of his own constituents, using anonymity to attack his own constituents who disagree with his anti-drilling positions (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry). PA legislators (mostly Republican) who crafted the state’s update to oil and gas drilling laws, called Act 13, wisely (presciently) included a clause in the Act 13 law that says if greedy politicians (like White) pass a severance tax on drilling in the state, the current impact fee will end. The intent was to have an impact fee instead of a severance tax. White has just introduced a bill (DOA of course) that will strip out the sunset clause and keep the impact fee even if a severance tax is passed. That is, White and others of his ilk want to double-tax the Marcellus industry in PA, with the end result of killing it…
Read More “PA Rep White Introduces Bill to Double-Tax Marcellus Drilling”
Columbia County | Energy Services | Industrywide Issues | Luzerne County | Lycoming County | Monroe County | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

FERC Says “No Significant Impact” from Leidy Southeast Pipeline
August 13, 2014August 13, 2014

Williams is one very important step closer to beginning construction–this fall–on their Transco Leidy Southeast Expansion project. Last fall Williams filed an official application with the Federal Energy Regulatory Commission (FERC) for permission to proceed with the project, a $610 million project designed to increase the Transco pipeline’s capacity by 525,000 decatherms per day–enough natural gas to serve 2 million homes (see Williams Takes Next Step with Transco Leidy Pipeline Expansion). The expansion will pipe cheap, abundant NEPA Marcellus Shale gas to points from New York City to the southeastern U.S. The project includes construction of approximately 30 miles of additional pipe segments, called loops, in PA and NJ, in addition to modifying some existing compressor stations and valve sites. Earlier this week FERC reported the proposed changes would have “no significant impact” on the environment. What does that mean?…
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