Statewide PA

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    PA Energy Rally Huge Success with Thousands Marching to Capitol

    I Missed the BusA (not so funny) thing happened on the way to the forum, er PA Energy Rally yesterday. MDN editor Jim Willis showed up at the appointed bus stop at 6:45 am with 15 minutes to spare–and as he pulled in, the bus was pulling out onto Interstate 81. Jim missed the bus! The Marcellus Shale Coalition has been very apologetic (and very upset with the bus company–the contract clearly states don’t leave until 7 am). So after inviting you to the rally, and with intentions of having a first-hand account report, Jim missed it. He was equal parts sad and angry–but that’s life.

    But don’t despair. By all accounts it was a great day with anywhere from 2,500-3,000 people marching to the Capitol steps in Harrisburg. By the way, when was the last time you heard about 3,000 anti-drillers marching in Harrisburg? Yeah, us neither. There were, however, anti-drillers who tried to rain on the parade–something like 6 to 8 anti-drillers. You read that right–single digits for the loonies who turned out to hold up a sign against shale drilling in their big, huge “counter protest.” The only people who even noticed them were reporters sticking cameras in their faces. At one point a single anti-driller tried to shout something. A few pro-drillers noticed–and laughed. Silly fools.

    Below we have a couple of media accounts of the rally. Strangely, the AP article is about the most fair and balanced we found. The reliably anti-drilling StateImpact Pennsylvania covered it too, with their reliably anti-drilling slant. We also have a funny sour grapes comment from the anti-drilling Jan Jarrett, former president/CEO of the anti-drilling environmentalist group PennFuture…
    Read More “PA Energy Rally Huge Success with Thousands Marching to Capitol”

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    Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline

    An update on Sunoco Logistics’ legal battles to build a 50-mile pipeline in western PA to connect to an older 8-inch pipeline that’s being re-purposed to flow ethane and propane from western PA all the way to the Marcus Hook refinery near Philadelphia along the Delaware River. The problem is push-back from residents along the pipeline’s route–for the new 50 miles of pipeline and for the compressor stations that need to be built along the entire route (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Sunoco feels it has no choice but to be granted state recognition as a public utility corporation (not the same thing as a public utility).

    They have a lot riding on their request to be recognized as a public utility corporation, so Sunoco has just hired a couple of big gun energy law firms to give them a hand with their multiple legal battles. One of those firms is Blank Rome, handling Sunoco’s application to be classified as a public utility corporation. The Sunoco case at Blank Rome is being headed by Michael Krancer–former Secretary of the PA Dept. of Environmental Protection, super sharp lawyer and all-around nice guy (MDN has spoken to, and heard Mike speak, a number of times). The other law firm lending a hand is Obermayer, Rebmann, Maxwell & Hippel, who will help out with Sunoco’s problems with new pipeline construction in western PA…
    Read More “Sunoco Hires Big Gun Law Firms to Help Complete Ethane Pipeline”

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    Radical Trout Unlimited Says Fracking OK Sometimes…Really??

    For the past few years MDN has pointed out that groups like Trout Unlimited (TU) are strongly anti-drilling. Maybe not every last member is against drilling, but every quote we’ve ever read from the organization proper or it’s members comes down on the side of being against shale drilling. In February the watchdog group Center for Consumer Freedom named TU and others as “radical green groups” (see Trout Unlimited, Other Groups Outted as Radical Green Groups).

    We thought it was interesting, and funny, that the increasingly anti-drilling Pittsburgh Post-Gazette (must be the industry spends more ad dollars with their rival the Pittsburgh Tribune-Review) ran an article focusing on the ever-so-reasonable TU and it’s considered, erudite, nuanced approach to shale drilling. A TU senior official says in the article: “We’re not opposed to fracking, we just think it shouldn’t happen everywhere.” Right. Just change that last word to “anywhere” and you have their real sentiments…
    Read More “Radical Trout Unlimited Says Fracking OK Sometimes…Really??”

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    Rex Energy 1Q14: Record High Production, Stacked Plays & Long Laterals

    Rex Energy, our “little energy company that could (and is)” continues to chug along. And because of the Marcellus, Rex isn’t so little anymore. They release their first quarter operations and financial update earlier this week. The Rex update shows quarterly production has hit 122.2 MMcfe/d, a new record for the company. Rex is drilling stacked plays, targeting not only the Marcellus and Utica but the Upper Devonian layer too–and experimenting with different lateral lengths. Doing all the right things, and it’s paying off for Rex.

    A a comprehensive update from the little energy company that’s doing it right…
    Read More “Rex Energy 1Q14: Record High Production, Stacked Plays & Long Laterals”

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    EQT: We’ll Let Range & Others Figure Out the Utica in SW PA

    Figure it OutLast Friday MDN told you that EQT is a bit wary and skeptical of the Utica Shale–at least in Ohio (see EQT Leaving the Utica? Maybe. Guernsey County Wells Disappoint). But what about the Utica in Pennsylvania? EQT CEO David Porges, in a Q&A with reporters yesterday, said the company is watching and waiting when it comes to the Utica in southwestern PA.

    Porges said “the Utica’s potential is enormous,” but…
    Read More “EQT: We’ll Let Range & Others Figure Out the Utica in SW PA”

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    U.S. Capital Advisers: PA Marcellus “Gift that Keeps on Giving”

    Investment firm U.S. Capital Advisers has just issued their third in a series of resource basin and infrastructure studies. Titled “Appalachia Infrastructure & Marcellus Basin Study Summary” (full copy embedded below), the new study begins this way: “Why Appalachia? It’s the biggest, baddest basin there is when it comes to gas production and the gift that keeps on giving, even in a $4 gas environment.” The study focuses exclusive on the Marcellus in Pennsylvania but the authors promise more studies are coming that will cover the West Virginia Marcellus and Ohio Utica Shale. Can’t wait!

    Read on to learn more about pipelines, NGLs, and even which counties showed the most well productivity improvement…
    Read More “U.S. Capital Advisers: PA Marcellus “Gift that Keeps on Giving””

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    PA Reporter Gets Law Firm to Withdraw from Sunoco Pipeline Case

    Since we’re tracking the progress of Sunoco Logistics’ Mariner East pipeline, and since this (minor) story has a potential impact on it, we’ll bring it to your attention. On Monday the anti-drilling PBS “reporter” Marie Cusick, who never misses a chance to trash-talk the Marcellus Shale industry, published an article on the reliably anti-drilling StateImpact Pennsylvania website highlighting what theoretically could be considered a conflict of interest for the law firm representing Sunoco Logistics. The law firm of McNees, Wallace and Nurick representing Sunoco Logistics is an associate member of the (hated) Marcellus Shale Coalition and they regularly represent (evil) gas industry companies. However, over the past two years McNees has also been used as outside (not inside, but outside) counsel for the state Public Utility Commission (PUC).

    The potential conflict is that the Mariner East case requesting Sunoco Logistics be classified as a public utility corporation with right of eminent domain is right now before the PUC and it is the PUC that will make a decision. Although different attorneys work for Sunoco case than for the PUC, the surface appearance of a conflict still exists (it’s the same law firm)–that we have to admit. A day after the story ran McNees filed paperwork removing themselves from the case. Now Marie can do a happy dance and put a feather in her cap. Atta girl, Marie! Not that it will make one fig of a difference in the end…
    Read More “PA Reporter Gets Law Firm to Withdraw from Sunoco Pipeline Case”

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    Range’s Record-Setting Marcellus Well Nearly Ties Best Utica Well

    super achieverYesterday on an their quarterly analyst phone call, Range Resources CEO Jeffrey Ventura announced the company drilled their best-ever well in the “super-rich” portion of the Marcellus Shale in southwestern Pennsylvania during 1Q14. Indeed, it is the best-ever Marcellus well drilled by anyone–not just Range. When we compare the results of Range’s top well with the best well we’ve heard of in the Utica–it nearly ties the top Utica contender, Antero Resource’s Yontz well (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). We were not able to locate the name or specific location of the Range well, but what we can tell you is this: It was drilled in SW PA on a pad with two other wells. It had an initial 24-hour rate of 6,357 barrels per day (versus the Yontz well’s 8,879 boe/d), or 38.1 million cubic feet equivalent per day (versus the Yontz well’s 38.9 Mmcfe/d). The Range well has a 7,065 foot lateral length (nearly a mile and a half long) with 36 stages tapping the Marcellus Shale. Truly impressive stuff. Even more impressive–there’s a Utica Shale layer below it and an Upper Devonian layer above it that Range can drill in the future. In other words, Range is just getting started.

    Below we have a quote from CEO Jeff Ventura on yesterday’s investor analyst phone call along with the press release Range issued on Monday summarizing first quarter results. We’ve also included the PowerPoint presentation (VERY interesting slides) Range released on Monday…
    Read More “Range’s Record-Setting Marcellus Well Nearly Ties Best Utica Well”

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    Range CEO & COO Talk Marcellus, Utica & More

    Although analyst calls are sometimes dry affairs, MDN found a lot to like in yesterday’s Range Resources analyst call that discussed first quarter 2014 results along with some predictions for where the company is going. The call kicked off with Range CEO Jeffrey Ventura and Range COO and Executive VP Ray Walker. Here’s a portion of the transcript from the call worth reading:
    Read More “Range CEO & COO Talk Marcellus, Utica & More”

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    Latest Attack on PA Drillers: Discrimination

    horse pooPennsylvania’s Act 13 Marcellus drilling law, passed two years ago and now partially gutted by seven selfish towns (see Act 13 Case Goes Back to Court, Drillers Petition to Join Lawsuit), has a provision that requires PA drillers to provide “maximum practicable contracting opportunities for diverse small businesses,” defined as minority, women, or veteran-owned businesses. Please don’t get us started on reverse discrimination in this country. Just play along for the moment and pretend such silly ideas are good and righteous (when indeed they are not). Fortunately the Act 13 law does not set quotas–but it does require an annual survey to be filled out and returned to the state. Apparently some drillers have not been filing their paperwork (naughty white boys) providing platitudes about how they try to find “diverse small business” to shower with their largess. Voila! A new, instant issue which anti-drillers will use to try and bludgeon to death the miracle of hydraulic fracturing and the economic miracle happening in Pennsylvania.

    The hew and cry will go out that drillers are all white, rich men who discriminate against the poor and disadvantaged. Which is, of course, horse manure…
    Read More “Latest Attack on PA Drillers: Discrimination”

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    Attorney Says Sunoco Should Seek FERC Approval for Mariner East

    A Pittsburgh attorney, writing in the Pittsburgh Post-Gazette, weighs in on the complex issue of whether or not Sunoco Logistics is a public utility corporation under Pennsylvania’s definition with the right to use eminent domain to force landowners in Washington and Westmoreland counties to allow Sunoco to lay pipeline under their land. The pipeline in question, as we previously wrote about, is the Mariner East ethane pipeline. Sunoco needs to lay 50 miles of pipeline in western PA. Most of the Mariner East pipeline already exists (being repurposed) and stretches from western PA all the way to Philadelphia and the Marcus Hook refinery. Sunoco still needs to build 31 compressor stations along the pipeline’s route as it crosses PA (see More Pushback from PA Residents on Proposed Mariner East Pipeline).

    Sunoco is facing a plethora of lawsuits and filings to counter their request to be declared a public utility corporation (not to be confused with being a public utility proper). Pittsburgh attorney William P. Bresnahan II says that Sunoco likely is a public utility based on a definition by the Federal Energy Regulatory Commission (FERC). He hints that if Sunoco plays their cards right–by which he means seeking and getting FERC approval for the Mariner East project–Sunoco will put to rest endless local lawsuits. However, getting FERC’s buy-in is not an easy matter…
    Read More “Attorney Says Sunoco Should Seek FERC Approval for Mariner East”

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    Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law

    Anti-drilling Democrat PA Rep. Robert F. Matzie (District 16) is set to introduce new legislation in the Republican-controlled PA House that will make it nearly impossible for seismic testing to take place in the state. He intends to introduce a bill that automatically assumes seismic testing is responsible for damage to property within 1,000 feet of where it happens. If a thumper truck goes down your road, and you want to get that crack fixed that’s been in your basement wall for the past 10 years, here’s your chance. Just claim seismic testing is at fault and send the bill to the testing company. Nuts.

    Here’s the rather funny announcement from Matzie saying this legislation is really not anti-drilling, oh no, and that he only wants to protect Pennsylvanians from evil, nasty seismic testing companies…
    Read More “Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law”

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    Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters

    Queen BeeIn a hilarious set of meetings with reporters in Harrisburg, PA, Democrat primary candidate for governor Allyson Schwartz had a spitting and sputtering fest. We truly wish we were there. She repeatedly attempted to lob verbal molotov cocktails at both Republican Gov. Tom Corbett (running for re-election) and at her chief primary rival and fellow anti-driller Tom Wolf. But the verbal bombs she lobbed just wouldn’t go off–and one of them exploded in her own face. At times pleading and at other times scolding, Schwartz essentially begged reporters to criticize Wolf and Corbett on her behalf.

    One of those reporters had had enough and asked her: since Tom Corbett has released 10 years of tax returns, why don’t you? Schwartz went nearly apoplectic. How DARE a reporter challenge the Queen Bee!? Her response was, essentially, “good for thee but not for me.” Which is the way anti-drillers like Schwartz always operate, with double standards…
    Read More “Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters”

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    PA Labor Unions Break Ranks with Dems to Support Shale Industry

    Organized labor continues to roar its approval for fracking, pipelines and the shale oil and gas industry in Pennsylvania and beyond. Breaking ranks with its own anti-drilling Democrat Party in PA, Laborers International Union of North America (LUNA) with more than 20,000 PA members, wrote an editorial appearing in the Erie Times-News that supports expansion of fracking in PA as opposed to silly moratoriums and more restrictions proposed by the Democrat Party and their candidates for governor on down…
    Read More “PA Labor Unions Break Ranks with Dems to Support Shale Industry”

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    New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations

    The Babst Calland law firm has put out an alert that proposed new rules recently issued by the Pennsylvania Environmental Quality Board to require “reasonably available control technology” (RACT) will affect “hundreds of facilities” that produce nitrogen oxides (NOx) or volatile organic compounds (VOCs), requiring them to spend money and install new equipment. There are nine source categories covered by the new rule, and although none of those categories say “compressor stations,” one of them is “turbines” which may cover compressor stations. At any rate, pipeline compressor stations are a major source of NOx and VOCs and will almost certainly be affected by the coming changes.

    Here’s the Administrative Watch for the RACT proposed rules, issued by the legal beagles at Babst Calland:
    Read More “New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations”

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    4 Anti Groups File Petition Against Sunoco Logistics with PUC

    Last Friday an environmentalist lawyer, on behalf of a group of residents from West Goshen, PA, filed an official request (or petition) with the Pennsylvania Public Utility Commission (PUC) to argue that Sunoco Logistics and its Mariner East natural gas liquids pipeline should not be granted “public utility corporation” status (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Four well-funded anti-drilling groups joined in the chorus and filed their own petitions with the PUC by the deadline on Monday. Those groups include The Delaware Riverkeeper (see Delaware Riverkeeper Gets a French Kiss from Phila. Inquirer), the Clean Air Council, the Pipeline Safety Coalition and the Mountain Watershed Association.

    All of the groups filing argue that Sunoco Logistics–actually a subsidiary called Sunoco Pipeline–does not meet “the legal standard” to qualify as a public utility corporation–which is not to be confused with being a public utility proper…
    Read More “4 Anti Groups File Petition Against Sunoco Logistics with PUC”