Statewide PA

Industrywide Issues | Litigation | Pennsylvania | Statewide PA

PA Court: Preparing to Drill Locks Up All Land in a “Unit”
August 19, 2013August 19, 2013

PA landowners listen up: If your gas/oil lease is near the end of its term with no drilling and you looking forward to signing a new lease, you may have a problem. If the driller holding the lease decides to do work in preparation for drilling on your neighbor’s property, you’re locked in too if your land is part of the drilling “unit.” According to a court case recently decided in PA, if a driller prepares to drill (which may be as little as moving around some dirt, depending on the language in the lease), the obligations of the lease are then fulfilled and all land in that unit is locked in–even if actual drilling doesn’t happen for a long time.

In legalese it’s called the habendum clause…
Read More “PA Court: Preparing to Drill Locks Up All Land in a “Unit””
Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Statewide PA

PA Director of Game Commission Double-Dipping with Gas Leases?
August 19, 2013August 19, 2013

An extensive investigative article about the director for the Pennsylvania Game Commission, William A. Capouillez, appears in yesterday’s Philadelphia Inquirer. The article spotlights a potential conflict of interest between Capouillez’s day job and his moonlighting side job as an agent for property owners who lease their land for oil and gas development. The issue? He signs private deals with the same companies that often work with his state agency. For one driller–Range Resources–it’s become a serious (legal) issue.
Read More “PA Director of Game Commission Double-Dipping with Gas Leases?”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

PA Sierra Club Looks for a New Warmist to Lead the Faithful
August 19, 2013August 19, 2013

The head of the extremist Sierra Club for the state of Pennsylvania is retiring, and the “race is on” to find someone just as extreme to fill his shoes. What does the PA Sierra Club’s Jeff Schmidt think is the most pressing issue facing the Keystone State? Of course it’s the mythical bogeyman “climate change.” What utter folly to say the climate changes! It’s like saying the sun shines and the earth rotates–which happen to be the two things that most affect the weather on this chunk of rock we call planet earth. Of course the climate changes–it’s definitional. What Schmidt means is that he believes man is causing catastrophic global warming–or anthropogenic warming. When the so-called “average temperature” on earth stopped warming about 15 years ago, the true believers had to quickly rename their manufactured crisis to “climate change.”
Read More “PA Sierra Club Looks for a New Warmist to Lead the Faithful”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Research | Statewide PA

Shale Gas Roundtable Issues Recommendations for PA Gas Drilling
August 16, 2013August 16, 2013

In March, MDN told you about the Shale Gas Roundtable, a group of high level participants from industry, government and academe organized and run by the University of Pittsburgh’s Institute on Politics (see Out of the Shadows: Another New Group Wants to Regulate PA Shale). The Roundtable has intentionally maintained a low profile–some might call it secrecy–in an attempt to craft a set of recommendations that will be taken seriously by both sides of the drilling debate and actually acted on, instead of being shelved as just another list of “nice to do” initiatives.

The group, which first met in September 2011, came all the way out of the shadows yesterday by releasing a 139-page report (full copy below) on their best thinking and recommendations to date. The report is a duesy–and we mean that in a mostly good way. Thorough and long, and full of concrete recommendations, the report tackles everything from proposed changes in the PA Dept. of Environmental Protection to new standards for water sourcing, biodegradable fracking chemicals, erosion controls, proposed new laws and even (yes) a vote in favor of forced pooling as the best way to minimize disturbance of surface land…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

Is an “Independent” Shale Research Organization Possible?
August 16, 2013August 16, 2013

The Shale Gas Roundtable–a southwestern PA group made up of representatives from the oil and gas industry, government and academe–released an important new study on Wednesday with a list of comprehensive recommendations for how shale drilling can and should go forward in Pennsylvania (see today’s companion story). One of the boldest proposals by the group is the establishment of an independent research organization to study the effects of shale drilling. The trick is to craft an organization whose research is unassailable–no accusations that “industry” or “enviro groups” funded the research and therefore said research is skewed or tainted. How to do that?

The Roundtable proposes to borrow an idea from the automotive industry…
Read More “Is an “Independent” Shale Research Organization Possible?”
Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Astonishing: Marcellus Gas Production Up Estimated 50% Over 2012
August 15, 2013August 15, 2013

According to Bentek Energy, Marcellus Shale gas production is up 50% compared with the same time last year–much more than energy experts had predicted. And apparently there’s no end in sight.

Bentek also says Marcellus production is so prolific it’s “actually starting to displace” natural gas production from the Gulf of Mexico…
Read More “Astonishing: Marcellus Gas Production Up Estimated 50% Over 2012”
Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

July Permits Issued in Utica/Marcellus for Tri-State Area
August 15, 2013August 15, 2013

An excellent permit “check-in”–a roundup of how many drilling permits were issued by county and driller, from Farm and Dairy, for the month of July in eastern Ohio, southwestern Pennsylvania and northern West Virginia:
Read More “July Permits Issued in Utica/Marcellus for Tri-State Area”
Forced Pooling | Industrywide Issues | Pennsylvania | Statewide PA

Courageous PA State Rep Tackles Shameful Forced Pooling Law
August 14, 2013August 14, 2013

Finally, a PA state representative with ~~balls~~ intestinal fortitude: Rep. Michele Brooks (Republican from Greenville, 17th District). MDN previously told you about bone-headed legislation (SB259) signed into law last month by PA Gov. Tom Corbett (see PA Gov Corbett Signs Back-Door Forced Pooling Bill into Law). No matter how you try to pretty it up, and no matter what redeeming qualities the legislation has for landowners who need more royalty calculation transparency–at the last minute a provision was slipped in to the law providing for forced pooling for some landowners with old leases. It’s a bad law for PA landowners. Already EQT has used the law against landowners in the Pittsburgh area (see Bad News: EQT Sues 70 Landowners Using New PA Forced Pooling Law).

PA Rep. Michele Brooks has had the courage to step forward to offer a new bill repealing the forced pooling provision in SB259. She’s currently looking for some of her fellow Republicans (and perhaps a few pro-drilling Dems) to stand up and be counted with her. Who will match her courage?
Read More “Courageous PA State Rep Tackles Shameful Forced Pooling Law”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide PA

Chesapeake Short-Changes PA Landowner on Royalty Checks
August 14, 2013August 14, 2013

MDN has brought you a couple of stories in recent weeks about landowners suing Chesapeake Energy over royalty checks, claiming Chesapeake is playing fast and loose with post-production expenses (see Bradford County, PA Landowners Sue Chesapeake over Royalties). A new Chesapeake royalty story (below) appears on the ProPublica website. It opens with a poignant tale of yet another landowner who was apparently screwed by Chesapeake with respect to royalties. It’s maddening.

However, we have to put the story in proper perspective. ProPublica is anti-drilling through and through. They have an agenda and that agenda is to make all drillers and anyone/anything connected to fossil fuels look bad, so as you read the story below, keep that in mind. Still, if even 10% of what is reported below is true, it’s disturbing. More than ever, it’s vital that landowners have a detailed, well-spelled-out lease that’s been reviewed and tweaked by a lawyer who knows oil and gas contracts inside and out. It’s also important to monitor every royalty statement…
Read More “Chesapeake Short-Changes PA Landowner on Royalty Checks”
Air Quality | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Which Option are PA Drillers Choosing for New Air Emission Regs?
August 13, 2013August 13, 2013

Last week MDN told you that tough new air emission standards would begin this week for drillers in Pennsylvania’s Marcellus Shale (see Tough New Air Standards for PA Marcellus Drillers Start Next Week). The PA Dept. of Environmental Protection (DEP) is giving drillers two options: either get an air quality plan pre-approved by the DEP for every well drilled (adding lots of time to drilling a well), or comply with the DEP’s stricter version of new federal standards issued in April 2012–that is, become certified that every well you drill lives up to a certain standard.

Which option are drillers choosing–a plan for every well or the tweaked federal standard? According to the industry organization Marcellus Shale Coalition, looks like most drillers are going with…
Read More “Which Option are PA Drillers Choosing for New Air Emission Regs?”
Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Transco | Williams

Open Season to Expand Transco Pipeline in PA Marcellus
August 13, 2013August 13, 2013

Williams has announced last Thursday an “open season” (a time to lock in contracts for natgas pipeline capacity) for their Transco pipeline in the Marcellus/Utica Shale region. If Williams gets enough interest, they’ll look to expand the Transco pipeline in PA and eventually move an additional 1 billion cubic feet of natural gas per day from the northeast to markets along the East Coast and the southeast.

The story from Reuters:
Read More “Open Season to Expand Transco Pipeline in PA Marcellus”
Industrywide Issues | Jobs | Pennsylvania | Statewide PA

US Sen Casey (PA) Wants Money for Marcellus Jobs Training
August 13, 2013August 13, 2013

Politicians like U.S. Senator Bob Casey (from Pennsylvania) are sickening. He makes us want to throw up. Casey introduced and is lead sponsor of legislation in the Senate called the FRAC Act—Fracturing Responsibility and Awareness of Chemicals. It is an anti-drilling bill plain and simple. Casey has repeatedly called for federal intervention in his own state on the issue of fracking and shale drilling. Then he turns around and sticks his hand out and wants Shell to locate a $2 billion ethane cracker plant that uses shale gas in his state (see The Two Faces of Sen. Robert Casey (D-PA) on Shale Drilling).

Once again, Casey has conveniently flipped sides and has his hand out. The enormous job growth in Pennsylvania due to shale drilling cannot be ignored, so Casey figures he can grab some money from the federal till for a jobs training program in his state (buys him more votes, you see). Earth to Casey: The shale drilling industry is already hiring and training thousands of people in your state–without the need to transfer taxpayers’ hard-earned money to your walking-around, vote-buying account…
Read More “US Sen Casey (PA) Wants Money for Marcellus Jobs Training”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

SRBC to Get New Executive Director in Sept: Andrew Dehoff
August 12, 2013August 12, 2013

The Susquehanna River Basin Commission (SRBC), one of two governmental agencies created to oversee rivers and tributaries in the northeast, has just named a new executive director effective Sept. 19. Andrew Dehoff will become the third person to hold that position in the SRBC’s 42-year history.

The SRBC is important to the shale drilling industry in Pennsylvania because it regulates how much–and when/if–water can be taken from rivers and streams for use in fracking. The SRBC announcement:
Read More “SRBC to Get New Executive Director in Sept: Andrew Dehoff”
Air Quality | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Tough New Air Standards for PA Marcellus Drillers Start Next Week
August 9, 2013August 9, 2013

Starting next week, Marcellus Shale drillers in PA will face strict new rules on air emissions at drill sites. The new rules (i.e. “technical guidance”) won’t officially be released until Saturday, August 10 when published in the Pennsylvania Bulletin. The rules will limit noxious emissions, including nitrogen oxides, volatile organic compounds and hazardous air pollutants. The rules also include an almost-total ban on flaring of wells–only short-term or emergency flaring allowed.

Drillers will be given one of two choices for compliance under the new rules: either get an air quality plan pre-approved by the PA Dept. of Environmental Protection (DEP) for each well drilled–adding a lot of time to the drilling process, or comply with new DEP standards that are even more strict than federal standards issued in April 2012–in essence have your drilling operation certified as complying with super-strict DEP standards. Which option will drillers chose? The Marcellus Shale Coalition says drillers are mulling it over now…
Read More “Tough New Air Standards for PA Marcellus Drillers Start Next Week”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

New Twist in PA Act 13 Case: Motion to Re-Hear Oral Arguments
August 8, 2013August 8, 2013

A new twist in the ongoing court battle over Pennsylvania’s still relatively new Act 13 Marcellus Shale drilling law. A court case has been before the PA Supreme Court since last year challenging provisions in the new law to replace local zoning of oil and gas drilling with a uniform, statewide standard. As MDN told you a few weeks ago, it appears the newly sworn-in seventh justice on the PA Supreme Court will not participate in the decision, leaving a split 3-3 decision a likely outcome (see PA Problem: Act 13 Zoning Case to be Decided by 6 Supremes, Not 7). Split decisions are not good for anyone, and a split decision in this case would leave the lower court rulings stand, gutting part of the Act 13 law.

The new twist: On Tuesday, the PA state Public Utility Commission (PUC) and the Dept. of Environmental Protection (DEP) filed a joint request that the entire seven-member court re-hear oral arguments in the case so the entire court can make a decision and finally lay this thing to rest, one way or the other. The towns that brought the lawsuit in the first place are objecting because they think they have a better chance at winning with a six-justice panel–a split decision means they win. Are the towns trying to cheat justice?…
Read More “New Twist in PA Act 13 Case: Motion to Re-Hear Oral Arguments”
Anti-Drilling/Fossil Fuel | Guest Post | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

What if PA Dems Win the Next Election and Ban Drilling Statewide?
August 8, 2013August 8, 2013

MDN reader, friend and contributor Chris Acker provides the insightful commentary below in response to (and building on) our article of a few days ago, titled: 18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium.

Chris delves into the economic apocalypse that would happen should PA Democrats gain power again in the next election and fulfill their promise of enacting a statewide moratorium/ban on drilling. It is, as Chris points out, a true nightmare scenario:
Read More “What if PA Dems Win the Next Election and Ban Drilling Statewide?”