Statewide PA

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    Study Says Each PA Well Creates $5-$10K+ in Road Damages

    A new study recently published in the peer reviewed Journal of Infrastructure Systems from a half dozen students and professors, some of them working for RAND Corporation, attempts to answer the question, How much road damage due to truck traffic happens in Pennsylvania–and how much does it cost? The study, titled “Estimating The Consumptive Use Costs of Shale Natural Gas Extraction on Pennsylvania Roadways” (full copy embedded below), was submitted for consideration a year ago–in March 2013. It was accepted by the Journal in November and finally published in their February 2014 issue.

    The folks doing the research are smart–members of the American Society of Civil Engineers–we don’t dispute their credentials. What did they find? Using estimates of how many truck trips it takes to drill a well from data collected by the New York Dept. of Environmental Conservation (yes, NY data where there is no shale drilling), the authors estimate that for more frequently traveled state and local roads in PA the damage amounts to an average of $5,000 to $10,000 per well drilled. If you include less-traveled rural roads, that number jumps to $13,000 to $23,000 per well average…
    Read More “Study Says Each PA Well Creates $5-$10K+ in Road Damages”

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    County Officials Meet with Shell on PA Cracker, Come Away Hopeful

    Seems like it’s “cracker day” at MDN. Long before Odebrecht announced their potential ethane cracker plant for Parkersburg, WV, Shell announced plans to build a cracker in Pennsylvania. In fact it was exactly two years ago this month that Shell announced the location would be Monaca (Beaver County), PA (see Shell Announces Location of Ethane Cracker Plant). PA state legislators eventually voted on a package of significant tax breaks for the proposed new plant (see PA Legislature Reaches Deal on Tax Credit for Cracker Plant). However, since that time, it seems like the PA cracker deal has cycled through highs and lows as to whether it would actually get built (see PA Ethane Cracker – On Again, Off Again…Now On Again?).

    More recently MDN told you the pendulum had swung back to the pessimistic side (see Shell’s Shale Pessimism Signals Worry for Some re PA Cracker). But what’s this? Last week some 30 Beaver County officials met with Shell about the proposed ethane cracker plant and left that meeting feeling “hopeful”–which is a good sign. Shell told the officials about moving forward with plans to move a portion of a local roadway, relocate power lines and other big-ticket projects that Shell would not be spending money on unless there is serious interest in moving forward. Here’s more from last week’s hopeful meeting between Shell and Beaver County officials…
    Read More “County Officials Meet with Shell on PA Cracker, Come Away Hopeful”

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    PA Dem Floats 5% Marcellus Severance Tax “For the Children”

    Pennsylvania Democrats continue their push for economic suicide. Borrowing from their 50 year-old playbook, the latest push is to impose a 5% severance tax on Marcellus Shale drilling in the state–which would effectively kill all drilling–and use the money (please don’t laugh)…”for the children.” Yes folks, PA’s schools suck big-time, and the only thing that can save them now is to extract some money out of the pockets of those nasty, filthy (and rich) drillers so teachers can educate young crumb crunchers to the superiority of socialism and taking money from one group (those who work) to redistribute to another (those who don’t work). What better way than to sink a pipeline right into the piles of money that come from drilling? What dunces.

    State Sen. Vincent Hughes, dunderhead Democrat from the Philadelphia area, said he will introduce legislation to impose a 5% Marcellus Shale severance tax that will be DOA, so he and other Dems can use it as a politically divisive campaign issue come November. Such caring (and intelligent) folks those PA Democrats. Just a teeny, tiny problem Vinny–your party has voted to stop all Marcellus drilling (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). How will you tax something that doesn’t happen anymore? Oops…
    Read More “PA Dem Floats 5% Marcellus Severance Tax “For the Children””

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    Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax

    A few weeks ago MDN said the plan floated by lefties and libs to create a so-called uniform severance tax across PA, OH and WV is one of the dumbest things we’ve heard in a long time (see Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV). The plan as proposed means all three states hold hands and jump off the economic cliff together. Apparently it’s more fun to die together (economically) than alone.

    MDN is not the only voice to point out the lunacy of this plan. The head of the PA Chamber of Business and Industry also says the proposed mega-tax is nuts. As Gene Barr highlights in the following letter to the editor, it’s apparent the people proposing such a plan–including the Pennsylvania Budget and Policy Center–are ignorant of how taxes in PA and other places actually work. You would think an organization with a name that includes the word “budget” would employ at least one economist or accountant. Apparently they don’t. They are economic illiterates who don’t realize what they are proposing is anything but fair–especially to Pennsylvanians…
    Read More “Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax”

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    Anti-Drillers Attack Crude-by-Rail Traveling Through PA

    The leftist anti-drillers at the Pennsylvania news organization called PublicSource, backed by the likes of Teresa Heinz Kerry, is taking aim at shale-produced crude oil that travels by railroad. In a hit piece in which they begin by doing a bait-and-switch, starting with a derailment of ethanol (nothing at all to do with oil or gas), they then parry and say derailments of oil in Pennsylvania are an imminent threat and danger to PA residents. The hue and cry has gone up: Either have the feds regulate shale oil on railroads out of existence, or preferably just stop shipping crude by rail. Who wants all that nasty crude from North Dakota anyway? Funny how the answer is always the same no matter the question: just stop extracting fossil fuels.

    Here’s how the latest PublicSource hit piece begins…
    Read More “Anti-Drillers Attack Crude-by-Rail Traveling Through PA”

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    Birthplace of Fracking (NE USA) Once Again Leads O&G Innovation

    Fracking as a concept has been around for a long time. Would you believe us if we said the first rudimentary forms of fracking date back to the 1860s–around the time of the American Civil War? That’s when liquids were first used to fracture “shallow, hard rock wells” in places like PA, NY and WV. Somewhere along the way oil and gas drilling drifted to places like Texas and Louisiana and Oklahoma. In the modern era, fracking started to be widely used commercially in 1947. Oil and gas drilling “grew up” in, and innovations came from, drilling in the southwestern part of the U.S.

    Shale drilling is a more recent development–the combination of fracking and horizontal drilling. Shale drilling has been around commercially for 15-20 years, and yes, it was first pioneered and developed by George Mitchell in the Barnett Shale of Texas. However, drillers in Texas and other locations are now learning from innovations coming from the Marcellus and Utica Shale. The country and indeed the world now looks to how companies like Cabot Oil & Gas are able to economically drill for gas in a low-price environment. The innovation that started in the northeast “once upon a time” some 150 years ago has finally returned to its birthplace in the northeast, and the northeast is showing the world how to do it better, faster, and safer than ever before…
    Read More “Birthplace of Fracking (NE USA) Once Again Leads O&G Innovation”

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    PA Shale Industry Demonized for “Lack” of Severance Tax

    The Democrats in Pennsylvania are bound and determined to impose a nosebleed severance tax on shale drilling in the state. Their latest effort comes from the partisan so-called Independent Fiscal Office, a branch of the state legislature, that just released an apples to oranges comparison of PA with other states claiming PA doesn’t pay as much in taxes as those other states. Of course what the very flawed analysis by the IFO doesn’t show are all of the other taxes and fees in PA not levied in those other states that more than make up for the “lack” of a severance tax.

    PA Dems seem to have the philosophy that 100% of the money earned by other people (drillers in this case) belongs to the state (i.e. them) for redistribution purposes, and how dare the industry oppose them from extracting 5%, or preferably 10%, right off the top (see PA State Treasurer Rob McCord Unveils Gas Death Plan). Here’s the latest salvo in the PA Dem war to regain the governor’s chair this November by demonizing the shale industry as not paying their “fair share”…
    Read More “PA Shale Industry Demonized for “Lack” of Severance Tax”

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    MSC Launches Shale Advocates – An Army of Shale Volunteers

    The Marcellus Shale Coalition (MSC) is the premier organization of its kind for promoting shale drilling in the Marcellus Shale. Headquartered in Pittsburgh, the MSC has some 300 members and associate members–a veritable Who’s Who in Marcellus drilling. All of the big boys (drillers and midstream companies) and many of the smaller ones belong. The MSC has enormous influence with lawmakers and does a great job with publicity for shale drilling. Just one thing missing–and that’s a way to involve people who “advocate” or support shale drilling but don’t necessary work in the industry or belong to the MSC. How to enlist the help of the army of volunteers who would be willing to spread the word to family and friends–and perhaps nudge their local political officials–to support responsible shale drilling?

    The MSC has the answer. Yesterday they launched a new initiative and website called Shale Advocates (www.shaleadvocates.com) that encourages shale supporters–no matter where they are and who they are–to help write letters and emails, and even call, political officials. It is a way to focus the efforts of the vast army of volunteers who support shale energy–a force for good. And frankly, a force for reason in an age of unreason. Here’s more on the new Shale Advocates movement and what the MSC aims to do by launching it…
    Read More “MSC Launches Shale Advocates – An Army of Shale Volunteers”

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    PA State Treasurer Rob McCord Unveils Gas Death Plan

    Poor old “Pass a Joint for John” Hanger dropped out of the race to be the Democrat nominee for governor in PA. Who will be next? Apparently not State Treasurer Rob McCord. Get this, he’s just released an utterly brilliant natural gas plan–tax the whole darned thing 10%…on everything produced. According to McCord, that will raise $1.63 billion for the state in just the first year.

    Of course the plan is, in reality, utterly brain dead and moronic. If such a plan were ever to see the light of day it would effectively kill all shale drilling in the state. Done. Finished. Over. And then instead of the $200 million+ PA now extracts in a reasonable impact fee–they would get nothing. How on earth do these people keep getting elected to office? Here’s more of the moronic McCord gas death plan:
    Read More “PA State Treasurer Rob McCord Unveils Gas Death Plan”

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    PA Game Commission Stops Promotion of Moonlighting Staffer

    Last week MDN told you about the moonlighting head of oil and gas leasing for the Pennsylvania Game Commission and his impending promotion (see PA Gov Corbett Blocks Promotion of Moonlighter at Game Commission). The independent 8-member board that runs the commission was about to promote William A. Capouillez to the top job of executive director. Capouillez manages the Commission’s 1.4 million acres of land for leasing by day, but in his off hours he assists private landowners with leasing their land to some of the same companies he brokers deals with during his day job. In other words, it has the appearance, if not the realistic possibility, for a conflict of interest.

    Gov. Tom Corbett put the breaks on Capouillez’s promotion. He also put the breaks on a deal the Game Commission had cooked up to give it’s outgoing executive director a $220,000 severance package. (Hey, where do we sign up to be members of the PA Game Commission board?) Yesterday the Game Commission said they would not promote Capouillez and they have put a stop payment on the $220K check to outgoing director Carl Roe due to objections from the governor…
    Read More “PA Game Commission Stops Promotion of Moonlighting Staffer”

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    PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684

    The Pennsylvania chapter of the National Association of Royalty Owners (NARO) sent out a flash alert email yesterday asking members to contact their state representatives to encourage a “yes” vote on House Bill (HB) 1684–the Guaranteed Minimum Royalty Act. This bill is partially in response to the apparent gouging Chesapeake Energy has done with respect to royalty payments. A vote may come as early as TODAY.

    Here is the text of the email from PA NARO president Jackie Root:
    Read More “PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684”

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    Pittsburgh TODAY’s CSSD Propaganda Piece – Gag Me with a Spoon

    like gag me with a spoonA masterful piece of propaganda written by Pittsburgh TODAY appears on the Washington Observer-Reporter website promoting the so-far underwhelming Center for Sustainable Shale Development (CSSD). The CSSD, announced exactly one year ago this week, is a joint effort between a few big drilling industry players and a few environmentalist organizations–an uneasy partnership created to make shale drilling palatable to crazy anti-drillers (see Important: Drillers & Enviros Form New Group, Launch Cert Program). If we might summarize, the article about the CSSD on the anniversary of its debutante ball adopts the the classic “against all odds” storytelling formula.

    According to PT, the CSSD is the story of a (very few) brave men and women who dared to buck the odds and sit down at the table to discuss their differences on shale drilling–people from both the industry and (more importantly of course) from environmentalist wacko groups. These brave men and women faced challenges, both internal (they agonized in their souls, am I selling out?) and external (they fought their own organizations and their brethren in other companies/green organizations). Against all odds, they stuck to it, found “common ground” (i.e. industry caved), and in the end, they “hammered out” 15 standards that if adopted (at extreme cost by the industry) will mean precious Mother Earth will survive this nasty, filthy activity called shale drilling after all. The End.
    Read More “Pittsburgh TODAY’s CSSD Propaganda Piece – Gag Me with a Spoon”

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    PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan

    Another hypocritical PA House Democrat takes a potshot at the sitting Republican governor over the issue of drilling in PA state forests. As you may recall, Gov. Tom Corbett included a plan to raise $75 million for the state budget by allowing a bit more drilling than there already is in state forests (see PA Gov. Corbett’s Bold Plan for More Drilling in State Forests). The $75 million he would raise is out of a $29.4 BILLION budget–or exactly 0.00255 of the budget. Essentially a rounding error. And yet, hypocritical Democrats like State Rep. Greg Vitali (Delaware County, PA) chairman of the Pennsylvania House Environmental Resources and Energy Committee, continue to heckle Corbett over that $75 million (see his letter below).

    Here’s the hypocrisy that needs to be thrown right back in Vitali’s face: His committee previously approved plans that allowed then-Gov. Ed “Fast Eddie” Rendell (a Democrat) to raise $444 MILLION from doing the very same thing! It was only after Fast Eddie had his cash that he closed down drilling in state forests with an executive order. Corbett had the guts to lift that order and ask for another $75 million on non-invasive, under the ground (not on the surface) drilling to raise some more money for the budget, and the Dems throw a hypocritical cow. Shame on them…
    Read More “PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan”

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    Pass One Last Joint for John Hanger

    John Hanger, the former Secretary of the PA Dept. of Environmental Protection under Gov. Ed Rendell, withdrew from the Democrat primary for governor last week. John is an “all of the above” kind of guy–in favor of wind and solar as much as natural gas. He’s also a very left-leaning liberal, in favor of legalizing pot smoking in the Keystone State. A few months ago we coined the phrase “pass a joint for John,” to, you know, give his campaign a boost (see PA Gov. Corbett’s Bold Plan for More Drilling in State Forests).

    But our best efforts to give John a boost apparently fell short. John supports restrictions on shale drilling. He even refused to denounce the crazies in his own party who want to ban all new Marcellus drilling (now part of the PA Democrat Party’s official platform, see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). Even so, the crazies just couldn’t stomach someone like John who gives even the smallest credence to fossil fuels. So John is now out of the running. He should have concerned himself more with the wacko left in his own party rather than repeatedly rail against the Tea Party…
    Read More “Pass One Last Joint for John Hanger”

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    PA Environmental Council Appoints New Leader, Ties to CSSD

    The mostly anti-drilling Pennsylvania Environmental Council has a new leader. We say “mostly” in deference to being corrected by the PEC a few years ago when we called them outright anti-drilling (see Pennsylvania Environmental Council Publishes New “Green Lease” Guide). On Friday the PEC named Davitt B. Woodwell to the position of president and chief executive officer, succeeding Paul M. King, who is retiring. The PEC is not dogmatically opposed to Marcellus drilling like many similar organizations in the environmentalist movement. The PEC at least allows there will be some drilling (they’re pragmatic). But make no mistake–they really wish there was no shale drilling in the state. They wouldn’t say that out loud in polite company–but that’s what they think and talk about behind closed doors.

    The newly promoted Mr. Woodwell is a participant in the so-far underwhelming Center for Sustainable Shale Development (CSSD)–an uneasy partnership between the shale drilling industry and environmentalists (see CSSD’s Andrew Place Talks About 3-Leg Approaches & Firehoses). Woodwell belongs to the Standards and Evaluation Committee of the CSSD. We’ll keep a close eye on the PEC and Mr. Woodwell for signs of Marcellus trouble-making. Meanwhile, here’s Friday’s announcement and brief bio (with lots of enviro-cred) for Mr. Woodwell:
    Read More “PA Environmental Council Appoints New Leader, Ties to CSSD”

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    Chesapeake Shafting Landowners out of Royalties Mess Gets Messier

    Corporate raider Carl Icahn is likely developing a case of heartburn over his investment in Chesapeake Energy. He’s been responsible for cutting thousands of jobs and selling off billions in assets at Chesapeake, but there is a developing situation he can’t control that will definitely affect his pocketbook. Pennsylvania’s landowners are up in arms over what they perceive to be theft of their royalty payments by Chesapeake Energy. We told you about the recent rally in Bradford County, and about Gov. Corbett and others who invited PA’s anti-drilling Attorney General, Kathleen Kane, to get involved (see Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans). It’s now a royal mess and likely to get messier as time goes on.

    The sorta short version of the story is this: A few years ago Chesapeake was hammered by bad press (because the media hates Aubrey McClendon, then CEO). Chessy’s stock tanked and with lots of debt, McClendon couldn’t find any more money to borrow at a reasonable rate. So McClendon invented a clever scheme to re-interpret leases that would allow Chessy to deduct certain pipeline fees from landowner royalties. The expenses would be paid to Access Midstream (spun off from Chesapeake) in return for Access giving Chessy a big, fat pile of cash/investment. The inflated pipeline fees paid to Access–now deducted from royalty checks–would generate enough revenue for Access to recoup their investment in Chessy. It was a clever way of extracting money from landowners by doing it through the intermediary of a pipeline company. At least that’s the theory spun by the anti-drilling ProPublica/Daily Beast. Is it true?…
    Read More “Chesapeake Shafting Landowners out of Royalties Mess Gets Messier”