Statewide PA

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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”

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    See Awesome Shale Technologies on Display at SGICC Awards

    For the third year running the Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) is holding a contest for the best shale gas-oriented innovations/new products/new service ideas. This year’s contest will award $25,000 to four winners (see 2014 Ben Franklin Shale Gas Contest – $100K in Cash Prizes!). The deadline to enter the contest is long over (Feb. 1st). However, you can attend the awards ceremony–FREE–in Pittsburgh and get a close-up look at the 13 finalists and their awesome products and services. And see who takes home the prize money!

    Here’s an announcement from the SGICC with details about attending the awards ceremony on May 15th in Pittsburgh…
    Read More “See Awesome Shale Technologies on Display at SGICC Awards”

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    Join Us for PA Jobs, PA Energy Rally in Harrisburg, PA on May 6

    PA Jobs PA Energy RallyIn less than two weeks–on Tuesday, May 6th–thousands of farmers, laborers, landowners, conservation groups, local government leaders, and the business community, will gather together at PA’s State Capitol in Harrisburg, PA for a historic march. United Shale Advocates is orchestrating a unique Pennsylvania Jobs, Pennsylvania Energy rally that will bring thousands of Pennsylvanians together to speak with a united voice in support of responsible energy development. Why march? Policy proposals in Harrisburg – including burdensome layers of new energy taxes on job creators and consumers, as well as other measures, would heavily tip the competitive scales against Pennsylvania – would place everything that’s been achieved at risk. Now is the time to march and to make our collective voices heard–loudly.

    MDN has been warning you since last year that Marcellus drilling is at risk in Pennsylvania–from moratoriums, high severance taxes and frivolous lawsuits. This event is for anyone who supports Marcellus Shale drilling–your chance to express your loud and strong support to politicians and the media. A crowd of thousands will get noticed–make no mistake. Would you PLEASE consider joining us? And we say “us” because MDN editor Jim Willis (a native New Yorker) will attend and march in support of shale drilling in PA. Yes, it’s a sacrifice and takes a day of your time. But it’s worth it. Below are the agenda and details for how you can join us and get a FREE bus ride to the event. However, the deadline to sign up for a spot on a bus is tomorrow, April 25th–so you need to sign up right away…

    YOU CAN STILL REGISTER ONLINE. PLEASE JOIN JIM ON THE BUS! LET’S FILL THE SUSQUEHANNA COUNTY BUS…
    Read More “Join Us for PA Jobs, PA Energy Rally in Harrisburg, PA on May 6”

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    Was PA Court Decision Really an OK for Forced Pooling?

    Sometimes language is a funny thing. Terms come into use and and thrown around–but in different contexts they mean different things. MDN recently noticed that earlier this month EQT won a lawsuit against landowners in Allengheny County, PA. The landowners had leased their land with EQT, but we’re guessing they were old leases, done some number of years ago, because the landowners said EQT could not drill under their properties collectively–in a drilling unit. Apparently the landowners wanted EQT to drill on each individual property–or perhaps (more likely) renegotiate the old leases for better money to allow horizontal shale drilling. Bear in mind EQT and the landowners–all of them–already have contractual leases.

    EQT sued (EQT Production Co. v. Opatkiewicz et al.) to “force” the landowners to allow them to do their job–drill horizontally under several properties as part of a drilling unit. The court ruled in favor of EQT (copy of the decision is embedded below) saying the landowners can’t stipulate how EQT gets the gas from leased contiguous properties. That is our essential understanding of the case. However, it’s widely being reported that the court “supported forced pooling”…
    Read More “Was PA Court Decision Really an OK for Forced Pooling?”

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    PA HB 1684 Guaranteed Minimum Royalty Act Hits a Snag

    For nearly a month, the National Association of Royalty Owners (NARO) Pennsylvania Chapter has been pushing for passage of House Bill (HB) 1684, the Guaranteed Minimum Royalty Act (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). HB 1684 would ensure landowners get a minimum 12.5% in royalty payments from drillers. This is in response to alleged rumors that Chesapeake Energy has been screwing landowners by deducting transportation and other costs in a somewhat underhanded way. HB 1684 is supposed to stop that–going forward.

    However, HB 1684 has “hit a snag” according state Rep. Matt Baker. As MDN has previously noted, this particular bill has divided landowners and drillers, something we don’t see often (see Rare Schism Between Landowners & Drillers over PA Royalty Law). The latest on the fate of HB 1684:
    Read More “PA HB 1684 Guaranteed Minimum Royalty Act Hits a Snag”

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    SD Co. Building PA Frack Wastewater Plant Wins 1st Prize in Paris

    MDN is aware of several companies working on a solution to “the water problem”–a better solution for handling frack wastewater–better than disposing of it via injection wells. The technologies we’ve heard about are truly exciting. One such company, which is headquartered in South Dakota (but building a treatment plant in Pennsylvania to service the Marcellus and Utica) is Advanced Water Recovery (AWR). AWR recently participated in the Global Water Initiative in Paris, France. They entered the Global Water Awards competition–and won first place in the category Water Technology Idol.

    We look forward to learning more about AWR’s technology and where, precisely, they’re building their plant in Pennsylvania, which is due to be completed this summer. Below is the press release announcing their first prize placement in the Paris competition, along with other background we are able to gather up…
    Read More “SD Co. Building PA Frack Wastewater Plant Wins 1st Prize in Paris”

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    More Pushback from PA Residents on Proposed Mariner East Pipeline

    pushing backAs part of the good news story about the “makeover” of the Marcus Hook refinery near Philadelphia, MDN came across more details about Sunoco Logistics’ plans to potentially use eminent domain in order to lay pipeline that will bring natural gas liquids, like ethane, to Marcus Hook. You may recall a few weeks ago we told you Sunoco Logistics had made a request with the Pennsylvania Public Utility Commission (PUC) to exempt the Mariner East pipeline from local zoning regulations in building some 31 pump and valve control stations across the length of the pipeline (see Sunoco Logistics’ New Roadblock in Building Mariner East Pipeline). A court case in Washington County, PA challenged that right in light of the decision from the PA Supreme Court that grants zoning rights, even for oil and gas development, to local municipalities.

    Sunoco Logistics is now being challenged in court in Chester County, questioning their right to become a “public utility corporation” with the right of eminent domain. Just to confuse the issue further, a public utility corporation is not the same thing as being a public utility in PA. However, if Sunoco Logistics is granted public utility corporation status, it means they have the right of eminent domain but are overseen by the Federal Energy Regulatory Commission and not by the PA PUC. In other words, they get the benefits of being a public utility, without the “burdens” of PA state oversight. That has some residents up in arms…
    Read More “More Pushback from PA Residents on Proposed Mariner East Pipeline”