Statewide PA

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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”…
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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:
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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”

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    PA RINO Claims 50 Repubicans Ready to Vote Yes on Severance Tax

    If you believe a left-leaning AP reporter and a few RINO sources, Republicans just can’t wait to vote for higher taxes in PA. According to the Democrat who pretends to be a Republican, Eugene DiGirolamo (R-Bucks), there’s “50 Republicans” in the state legislature who would vote for a nosebleed-high severance tax on Marcellus Shale drilling and do so right the heck now.

    Really? How about some names Gene? Besides yourself and two or three other southeastern PA RINOs. Frankly, we think it’s smoke and mirrors to prop up your own pathetic campaign. And by the way–when will the Democrats in southeast PA boot people like DiGirolamo and replace him with a real Democrat, and not a pretender?…
    Read More “PA RINO Claims 50 Repubicans Ready to Vote Yes on Severance Tax”

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    Labor Unions a Powerful Ally for Northeast Shale Industry

    Unions in Pennsylvania, West Virginia and Ohio are backing shale drilling in a big way, and that’s giving lefty Democrats heartburn. The unions note that in the early days of northeast shale drilling a lot of the help came from out of state–places like Texas, Oklahoma and Louisiana. But that’s changed. Today most of the workers are local, and many of them belong to labor unions. Regardless of your opinion on labor unions, there is one inescapable fact–their members want jobs and they’re willing to work and work hard in those jobs.

    Labor unions have become an important and powerful ally for the drilling industry. Here is that story…
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    PA DCNR Releases Report: Drilling Impacts on State Land/Forests

    DCNR logoYesterday the Pennsylvania Department of Conservation and Natural Resources (DCNR) released a new report titled “Shale-Gas Monitoring Report” (full copy embedded below), the first in a series of ongoing reports on the impacts of Marcellus Shale drilling on PA’s state-owned land, including state forests. The DCNR was given a $6 million budget more than three years ago to study drilling impacts. This is the first report, eagerly anticipated by anti-drilling groups like PennFuture. Unfortunately for them, the study contains no indications that drilling is a disaster for public lands, as they had wanted it to say. In fact, the report found that out of 2 million acres of state-owned land, only 1,500 acres were converted from “wild space” to use for drilling (roads, drill pads, compressor stations, etc.). That’s 0.075%–not even 1/10th of a single percentage point. In other words–nothing. Another 9,340 acres were partially developed. Still a very low number and not the environmental holocaust predicted by anti-drillers.

    Dan Devlin, acting deputy secretary for Parks and Forestry, wrote this in the preface: “…shale-gas production on state forest lands is neither benign nor catastrophic. There are clearly impacts and tradeoffs associated with this activity. The question is what tradeoffs are acceptable. The Bureau of Forestry considers these tradeoffs and attempts to balance the various uses and values of the forest.” PennFuture president and CEO Cindy Dunn worked herself up into a lather, saying this about the report: “The suggestion that this industrial activity can be ‘carefully managed’ provides scant comfort to Pennsylvanians who frequent Penn’s Woods.” Below we have the full 268-page report, the DCNR press announcement about the report, and PennFuture’s snit fit response…
    Read More “PA DCNR Releases Report: Drilling Impacts on State Land/Forests”

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    FWW Targets Democrat Candidates to Sign No Fracking Pledge

    In June 2013 when the official Pennsylvania State Democrat Party met in beautiful Lancaster, PA for their annual meeting, they voted to adopt a new official plank in the party that we pointed out is completely insane: an ongoing moratorium (in essence a ban) on all new Marcellus Shale drilling in the state (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). For weeks MDN was the only “news” outlet where you could find any coverage of this lunatic action by one of two major parties in the state. In fact, you would still be hard-pressed to find any media mentions–they simply want to sweep it under the rug. We warned you at the time, and since that time, that this is a five-alarm political emergency. If these kooks retake power in the state and stop all new drilling, it would have a catastrophic effect on the entire nation’s economy, as our buddy Chris Acker points out (see Guest Post: Pennsylvania Drilling Moratorium – Good or Bad?). Folks, this is not hyperbole. It IS that serious.

    The odious (and fascist) Food & Water Watch (FWW) has taken up the call of the official Democrat Party position with a new PR campaign called “Pledge to Halt Fracking.” FWW is pushing the five Democrat candidates running for governor to sign a pledge that they will obey the Party’s official moratorium/ban on new Marcellus drilling should they get elected to the governor’s chair. We continue to ring the alarm! FWW and the Democrats MUST BE STOPPED before they ruin not only PA’s economy, but the entire country’s economy, by shutting down the only thing keeping us from a full-on economic depression. Already one politically brain-dead Democrat candidate for lieutenant governor–Brad Koplinski–has signed it. Will more follow his foolish lead and jump off the political cliff?…
    Read More “FWW Targets Democrat Candidates to Sign No Fracking Pledge”

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    PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue

    Pennsylvania Attorney General Kathleen Kane’s office is interviewing people on the Chesapeake Energy royalties screwing scandal, reportedly. We have mixed emotions about it. Yes, the state needs to investigate and see if there has been malfeasance. However, we question whether an avowedly anti-drilling AG has the moral or ethical ability to do so honestly. Yes, we ARE questioning her fitness for the office. Problem is, Gov. Tom Corbett and other PA Republicans like State Sen. Gene Yaw asked her to investigate–so it’s on their heads if she turns into the proverbial bull in a china closet and takes the opportunity to try and destroy the drilling industry as part of her “investigation.”

    Here’s the latest from the rumor mill on Kane’s so-called royalty investigation…
    Read More “PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue”

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    Pressure Rises for Fair Tax on News Industry (Absurdity Illustrated)

    Since no one else but Gov. Corbett is sticking up for the existing impact fee on Marcellus drilling in PA that raises millions of dollars (and not doing all that great a job of it), on Monday MDN took a stab at making a case for the fundamental unfairness of targeting a specific industry or group of people for high taxes by justifying such an action as being “for the children” (see PA Dem Candidates’ Siren Song: Severance Tax “for the Children”). We told you that Democrats and their sycophantic supporters in the media would turn up the volume on a call for high severance taxes on the natural gas industry. We didn’t know just how quickly our words would come true!

    Today, after having met with and getting stoked by extreme liberal Allyson Schwartz (who is running for governor), the liberal Democrat editorial propagandists at the Scranton Times-Tribune dedicated their precious editorial space to a call for high severance taxes–and to bludgeon Republicans into supporting those high taxes. So we thought we would take the opportunity to tweak their editorial and in every instance of “severance tax” and “natural gas industry” replace those words with “news tax” and “news industry.” We wonder if the Times-Tribune editors would be in favor of this tax if it specifically targeted–or included–their operation and the operations of their liberal brethren? And what if the severance tax bill also included a new, extra 5% tax on the salaries of PA legislators. Would it pass then? You get the idea. Targeting a specific industry or group of people, no matter how “noble” the cause in using the money raised, is an obscene governmental abuse. It is theft. Here is our attempt to illustrate the absurd by using absurdity and turning their argument right back on them…
    Read More “Pressure Rises for Fair Tax on News Industry (Absurdity Illustrated)”

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    PA Dem Candidates’ Siren Song: Severance Tax “for the Children”

    not for the childrenOnce upon a time there was a man who worked really really hard. He was the type to arrive at work early, stay late, and go the extra mile. He paid (as we all do) nearly half of the money he earned in taxes–federal income tax, social security tax, Medicare tax, disability tax, property tax, school tax, state income tax, sales tax on everything he purchased, and fees on just about everything his hands ever touched. It adds up to about 50% of the man’s income (as it does for every single person reading this), whisked away and given to other people. However, because the man made a pretty good salary, the man’s neighbor had a brilliant idea: Each day when the man arrived home the neighbor was waiting, with gun in hand. He would point the gun at the man’s head and demand the man give him “just 5%” of what the man earned that day. It was so easy, the neighbor did this every day–and he targeted other nearby suckers, er hard-working people too–collecting 5% from them.

    Getting shaken down for 5% (on top of 50%) isn’t all that bad, is it? Sure it belongs to the people who worked so hard to earn it. Sure the people who earned it played by the rules, were super careful and considerate of those around them–upstanding members of the community. But the money is going to a good cause–the neighbor’s pocket! (Did we mention the neighbor with the gun doesn’t work nor earn a dime on his own?) Of course, in time, the neighbor with the gun got more greedy and 5% eventually turned into 10%, but hey, the people earning the money still got to keep 40%. I mean, good golly, 40% out of 100% ain’t all that bad, is it?…
    Read More “PA Dem Candidates’ Siren Song: Severance Tax “for the Children””

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    Frack Sand Train Derails Near Allentown, 6 Cars Spill Near Homes

    MDN is always a sucker for a good railroad story. We love how the fracking industry has breathed new life into the short line railroad business–especially in Pennsylvania. However, this particular railroad story is not such a happy one (although it could be worse).

    Last Saturday a 45-car train for the Delaware-Lackawanna Railroad was pulling a load of frack sand through Northampton County (Allentown area) when six of the cars derailed, spilling sand. Even though the accident happened in a populated area near homes and businesses, because the train was going a very slow 5 miles per hour, no one was hurt and no homes or businesses were damaged. Cleanup of the mess is set to begin today…
    Read More “Frack Sand Train Derails Near Allentown, 6 Cars Spill Near Homes”

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    Another Day, Another Sham Study on Marcellus Methane Leaks

    This one is rich. Apparently Cornell anti-drilling professor (and erstwhile stand-up comic) Tony Ingraffea’s name is so toxic when it comes to discredited research, that when he’s part of yet another sham “study” on methane (as in a new one released yesterday), his name doesn’t even come up in the official press release. Neither does his partner in crime Robert Howarth. Both have authored previous “studies” that were completely refuted as junk science. Their names are tucked away in the list of esteemed authors for a new study titled, “Toward a better understanding and quantification of methane emissions from shale gas development” (abstract below). This latest fiasco was published yesterday on the Proceedings of the National Academy of Sciences website. In a nutshell, the “researchers” flew a plane over gas drilling operations in Pennsylvania to collect and analyze samples, looking for that evil fugitive from justice (and causer of global warming)–methane. The so-called study’s findings? There’s a whole lotta methane leakin’ out down they’a. But it gets better.

    You might think an evaluation of methane coming from rocks would include at least one geologist–you know, the scientists that study rocks? For this study, the two lead authors are a chemistry professor (from Purdue University) and an evolutionary biologist (from Cornell). Not one geologist in the entire list. We wonder–did these smarter-than-the-rest-of-us researchers take into account that herd of cattle grazing near the drill site? You do know that cows burping and farting produce more methane per year than oil and gas operations, according to our own federal EPA, right? (See: Biggest Producer of “Fugitive” Methane is… Cows?!). Did our eager beaver researchers take into account all those belching/flatulating bovines as they were flying around the PA countryside with loads of farms?…
    Read More “Another Day, Another Sham Study on Marcellus Methane Leaks”

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    CT May Pass Frack Wastewater Ban; Should PA Pass CT NatGas Ban?

    Even though there is no frackable shale under the ground in Connecticut, state legislators on Monday advanced a bill that will ban frack wastewater and (presumably) drill cuttings from states with fracking operations–like Pennsylvania. We’re reasonably certain no frack wastewater or drill cuttings have ever been hauled to Connecticut for disposal, so this bill seems to be yet another empty gesture. However, the bill does seem to be headed for passage by a May 7 deadline.

    So MDN would like to propose a new bill for PA legislators: How about a law that prohibits the sale of natural gas extracted by fracking to states like Connecticut that don’t want to help out with waste disposal? Seems fair to us. It’s not like Connecticut residents would have to go without natural gas–they can buy it from Russia’s Gazprom for oh, $100-$150 per thousand cubic feet (instead of purchasing PA’s Marcellus gas for $3-4 per Mcf). How about it PA? Let’s play a little hardball and see how those conceited New Englanders like a little taste of their own legislative medicine…
    Read More “CT May Pass Frack Wastewater Ban; Should PA Pass CT NatGas Ban?”

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    Marcellus Entrepreneur Donny Beaver: Silica Dust, Mud & Heck Out

    Donny Beaver is a serial entrepreneur. He co-founded New Pig in the mid-1980s–a company that absorbs anything that leaks, drips, splatters or spills. In 2001 Donny founded what would become a series of exclusive fly fishing clubs/retreat centers called the HomeWaters Club across Pennsylvania. In January 2013 he co-founded and launched HalenHardy, which solves problems for the Marcellus (and by extension construction) industry. Donny would talk to Marcellus workers who frequented his HomeWaters Club and his natural curiosity landed him in a new venture to help solve problems for the industry.

    First up was the excellent and award winning Mobile Air Shower by HalenHardy (MASHH) units that remove silica dust from workers in 30 seconds (see HalenHardy Wins Ben Franklin EHS Award for Silica Air Shower). Next up is a device that removes mud from boots in 30 seconds. And after that? Portable barriers that will keep people away from dangerous construction sites or emergency scenes–as in “keep the heck out,” a product called Heck Out. Perhaps Donny’s key insight, something all entrepreneurs should learn and tattoo on their hearts: “People don’t care about companies; they care about stuff that helps them.” Smart guy. He surrounds himself with talented, creative people. Really smart guy…
    Read More “Marcellus Entrepreneur Donny Beaver: Silica Dust, Mud & Heck Out”

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    Marcellus/Utica Anti-Drilling Group Back with Impacts “Research”

    The Multi-State Shale Research Collaborative (MSSRC) attempts to pass itself off as a non-partisan, “just the facts ma’am” kind of organization dedicated to measuring the “impacts” of Marcellus and Utica Shale drilling. They are anything but. The organization is extremely partisan and anti-drilling, backed by the likes of the Heinz Endowments and Park Foundation, two organizations that back only anti-drillers when it comes to the issue of shale drilling (just ask Bobby Vagt, former president of the Heinz Endowments, Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?).

    Last November the MSSRC issued a faux research “report” that said, “Nah, Marcellus/Utica doesn’t create all that many jobs after all” (see Anti-Drilling Cabal Issues Biased Report on Marcellus/Utica Jobs). The anti-drilling MSSRC is back with a series of four “case studies” on counties in the Marcellus/Utica and how they’ve fared with a number of metrics. As you might expect, the “study” found loads of negative impacts. It’s all crap, but we highlight it for you so you know that it’s crap and so you’re not taken in by their lame attempt at covering up who they really are and their insidious agenda…
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