Statewide PA

Industrywide Issues | NG Vehicles | Pennsylvania | Statewide PA | Wastewater

Envelope Please: Winners of Shale Gas Innovation Contest are…
May 8, 2013May 8, 2013

For the second year running, the Ben Franklin Technology Partners’ Shale Gas Innovation & Commercialization Center selects three winners from a field of 12 entrants to award a $25,000 prize in its Shale Gas Innovation Contest–a contest that recognizes startups and small businesses and gives them visibility and encouragement for their efforts.

MDN previously highlighted this year’s entrants, particularly because we’re acquainted with one of them (see REV LNG, 11 Others Finalists in Shale Gas Innovation Contest for the entire list of this year’s entrants). We won’t keep you waiting any longer. The envelope please! This year’s three winners are…
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Health Impacts | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Senator Proposes Panel to Study Health Impacts from Drilling
May 8, 2013May 8, 2013

The main architect of Pennsylvania’s Act 13 legislation that was passed last year was Republican state Senator Joe Scarnati. Act 13 was PA’s most sweeping revision of oil and natural gas drilling in decades, providing for (among other things) the collection of an “impact fee” (or tax) that resulted in $204 million in revenue in 2012.

Scarnati is back with a proposal for more legislation that will impact the Marcellus Shale–this time, he wants to create an advisory panel to investigate public health issues related to Marcellus drilling…

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | New York | Pennsylvania | Regulation | Statewide NY | Statewide PA

Manhattan Institute Study: Lifting NY Frack Ban Would Mean Billions
May 7, 2013May 6, 2013

$MI fracking study cover$ The New York-based Manhattan Institute, a non-profit think tank with a mission “to develop and disseminate new ideas that foster greater economic choice and individual responsibility,” released a new report yesterday titled, “The Economic Effects of Hydrofracturing on Local Economies: A Comparison of New York and Pennsylvania” (full copy embedded below). The report finds that if New York lifted its moratorium on fracking, it would mean billions of dollars in income for upstate New Yorkers and for the state as a whole.

MI researchers closely examined counties in Pennsylvania and found a) those counties with shale wells did better economically, b) the more wells, the better they did, c) counties with shale wells experienced double-digit rises in per capita income, and d) perhaps most surprisingly, PA counties with no shale wells or fracking saw per capita incomes rise an average 8%! Across the board, fracking has benefited PA enormously and this report proves it. The authors also say NY is screwing itself (our words) if it continues to ban fracking…
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Energy Companies | Industrywide Issues | Pennsylvania | Pennsylvania General Energy | Statewide PA | Wildlife

Marcellus Driller Asked to Replace PA Woodrat Habitat
May 7, 2013May 6, 2013

Once upon a time a little fish not much bigger than a paperclip, called a snail darter, was considered “endangered” and the prospect of disturbing its “habitat” delayed the erection of a major dam. That was in the 1970s. Today? Today we have the endangered Allegheny woodrat–otherwise known as a packrat. Please…try not to laugh! Although the Allegheny woodrat is not on the federal endangered species list, it is on the PA “threatened and protected” list–and therein lies the connection to Marcellus drilling…
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Chesapeake Energy | Energy Companies | EQT Corp | Pennsylvania | Statewide PA | Washington County

Chesapeake Fire Sale Continues – EQT Picks up 99K Acres in SW PA
May 6, 2013May 6, 2013

The Chesapeake Energy fire sale of assets continues. On Friday, EQT Corp. announced they’re picking up 99,000 acres of leases and 10 horizontal wells in the Marcellus Shale from Chessy in southwestern PA for $113 million. Of that number, $60 million is the price for the acreage (and $53 million for the 10 operating wells). If you run the math, that’s $606 per acre ($60M/99K)–i.e. fire sale price.

Below is the EQT announcement (first), and analysis of the deal by Seeking Alpha blogger and energy analyst Richard Zeits (second):
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Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

List of “Things to Consider” Before You Sign a Pipeline Lease
May 3, 2013May 3, 2013

The rapid ramp-up in Utica Shale drilling in Ohio, and Marcellus drilling in Pennsylvania and West Virginia, has meant a shortage of “infrastructure” like pipelines to carry all of the bountiful shale gas being mined. Infrastructure development–pipelines and processing plants–are not being built at a furious pace across both the Utica and Marcellus–but particularly in the Utica. That means a pipeline company landman may come knocking on your door, if you’re a landowner. What are the things to watch out for, before you sign a lease to allow a pipeline?

The attorneys at Bricker & Eckler (with several offices in Ohio) have a handy list of “things to consider” before you sign on the dotted line to allow a pipeline across your property…
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Chesapeake Energy | Energy Companies | Pennsylvania | Southwestern Energy | Statewide PA | Susquehanna County

More on Chesapeake’s Fire Sale of PA Acreage to Southwestern
May 1, 2013May 1, 2013

A blogger on the Seeking Alpha website delivers a bit more information about the announcement earlier this week that Chesapeake is selling their leases for 163,000 acres in NE PA to Southwestern Energy for what MDN called the “fire sale” price of $574 per acre (see Southwestern Energy Buys 162K PA Marcellus Acres from Chesapeake).

According to Seeking Alpha, Chesapeake paid an average of $610 per acre to lease that acreage between 2006-2009, so they actually lost money on the deal…
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Berks County | Energy Services | Industrywide Issues | Inergy | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services | WGL Holdings

Berks County Officials Think Commonwealth Pipeline Will Rise Again
May 1, 2013May 1, 2013

The Commonwealth Pipeline, a joint venture between Inergy, UGI and WGL Holdings, was suspended indefinitely just a few weeks ago (see PA’s Commonwealth Pipeline Project Suspended – Indefinitely). However, officials from Berks County, PA, in the southeastern part of the state and a county through which the Commonwealth Pipeline was slated to pass through, don’t buy it. They believe the project will come back to life and pass through their county, eventually…
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Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Southwestern Energy | Statewide PA

Southwestern Energy Buys 162K PA Marcellus Acres from Chesapeake
April 30, 2013April 30, 2013

Southwestern Energy announced yesterday that they’ve picked up 162,000 Marcellus Shale acres in northeastern Pennsylvania from Chesapeake Energy for $93 million. Along with the acreage comes 17 producing (1.2 net) wells with a (very small) 2 million cubic feet of net production per day. The Southwestern purchase nearly doubles the amount of their Marcellus Shale acreage.

The first interesting thing to MDN about the deal is that all of this new acreage–as well as all of Southwestern’s existing Marcellus acreage–is squarely in the “dry gas” area of NE PA. Obviously Southwestern, like Cabot Oil & Gas, believes there is money to be made in the dry gas window of the play. The second interesting thing is that Southwestern got the acreage at the fire sale price of $574 per acre…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Did PBT “Badger” PA Gov Corbett on Shell Cracker Plant Date?
April 30, 2013April 30, 2013

Yesterday MDN told you about comments from PA Gov. Tom Corbett that seemed to indicate he’s changed his story about when a final final final decision may come from Shell about whether or not they will move forward with building an ethane cracker plant in Monaca, PA (see Corbett Story Changes: Decision on PA Cracker Plant Delayed Again). However, Corbett’s may not be the only story that got changed. According to a spokesman for the governor, the editorial board of the Pittsburgh Business Times “badgered” Corbett into forecasting the 2014 date when a decision may be made, and then shaded their coverage to make it seem as though Corbett has changed his story…

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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Corbett Story Changes: Decision on PA Cracker Plant Delayed Again
April 29, 2013April 29, 2013

In what looks to be like more backpedaling, PA Gov. Tom Corbett told the Pittsburgh Business Times on Friday he now doesn’t expect a final decision on whether Shell will build a new $2 billion ethane cracker plant in Monaca, PA until 2014. Last December he said Shell needed another six months (until the end of June) for lawyers “dotting I’s and crossing T’s” (see Gov Tom Corbett: Shell Cracker Plant in PA Not “Off the Rails”). Now the story is, “I’ve always thought it would be early next year,” meaning 2014. Hmmm. Then why didn’t he say that last December?

From the Pittsburgh Business Times:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

John Hanger’s Proposals for PA Shale Drilling: Tax & Regulate
April 26, 2013April 26, 2013

John Hanger is currently a lawyer in private practice in Harrisburg, but previously served as the Secretary of the PA Dept. of Environmental Protection under then Democrat Gov. Ed Rendell, prior to the Republican Tom Corbett administration. Last year, John Hanger was the featured speaker for MDN’s very first webinar (watch it here: Webinar Replay: John Hanger on Gas Drilling and Energy Choices). John is also running for the Democrat nomination for PA governor, to run against Corbett. He’s a serious guy and although the list of Dems running in PA is long, he stands a good chance of being the nominee. When John talks about shale drilling in the state and what he would do if elected governor, you need to pay attention.

John has just released a list of how he would do things differently to restore “public confidence” in the PA drilling industry, should he be elected the Keystone state’s governor this fall. Top of that list? Implement an expensive severance tax. Next in line? Heavy regulation. We’re not quite sure how taxes inspire so-called lost confidence—other than the sleazy aspect of buying off people who didn’t earn it (primarily politicians). As for regulation, air pollution seems to be at the top of his agenda. He also wants to ban drilling in all state parks. Here’s exactly what John says he’ll do if elected:

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Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources 1Q13 Update: Marcellus Provides "Impressive Results"
April 26, 2013April 26, 2013

Range Resources, the first driller to sink a Marcellus Shale well in western PA in 2004, issued their first quarter financial and operational update yesterday. According to Range, the liquids-rich Marcellus in southwestern PA “continues to provide impressive results.” Range’s daily production hit new highs in 1Q13. Most of their Marcellus work is concentrated in the “super rich” area of SW PA where they brought 25 new wells online in the first quarter. However, Range also drilled 7 new wells in NE PA, in the “dry gas” zone of the Marcellus.

Here’s part of the Range update, including details on their Marcellus operations:

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Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Susquehanna County

Big News: PA Supreme Court Decides Shale Mineral Rights Case
April 25, 2013April 25, 2013

The Pennsylvania Supreme Court has just ruled on a case with huge consequences for the natural gas drilling industry in the state. We won’t keep you in suspense: the ruling is favorable to the drilling industry.

In Butler v Powers, the Supreme Court justices took up the issue of whether or not natural gas rights should be part of the broader concept of “mineral rights” in PA. In most states when a deed or lease agreement is signed for mineral rights it includes natural gas as well, on the theory that the gas comes from a mineral—shale rock. But that has not been the case in PA. Going all the way back to a case in 1882, PA has had “the Dunham rule” which separates natural gas rights from the broader concept of mineral rights (for background on the Dunham rule, see the MDN article PA Supreme Court Hears Arguments in Critical O&G Case).

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Drilling Eco-Nuts on Parade in PA for Earth Day
April 23, 2013April 23, 2013

In honor of “worship Mother Earth Day,” small groups of anti-drilling eco-nuts paraded themselves in front six different Pennsylvania Dept. of Environmental Protection offices around the state yesterday (see Protesters Rally Outside DEP Offices On Earth Day To Fight Marcellus Shale Fracking). They apparently don’t have jobs and do have lots of extra time on their hands to do such things.

In contrast to the intentional know-nothings who oppose fracking, in honor of Earth Day, the American Thinker (great site by the way) published the account of an air pollution meteorologist who recently visited actively drilled well sites in southwest PA. Here’s what someone with a brain reports about what he witnessed:

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Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

ShaleNavigator Expands Again: Adds New Areas to Online Mapping App
April 23, 2013April 23, 2013

Although technically not in the purview of MDN’s coverage, we want to alert you that MDN partner ShaleNavigator—the top-notch online mapping service that brings you those marvelous maps in the Marcellus and Utica Shale Databook—is expanding. ShaleNavigator founder Ed Camp has added the Collingwood and Antrim Shale plays in Michigan to his coverage.

Here’s Ed’s press release announcing the expansion of his excellent service:

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