Statewide PA

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

PA Supreme Court Resignation Affects Act 13 Zoning Decision
March 26, 2013March 26, 2013

Landowners and drillers have been waiting since last year for the results of a case before the Pennsylvania Supreme Court. Early last year the PA legislature passed the most sweeping new oil and gas drilling regulations in decades, called Act 13. Part of Act 13 replaces a crazy quilt patchwork of local zoning regulations with a set of uniform state zoning regulations. Towns didn’t like being told they can no longer fiddle with where a well can and can’t be drilled in their borders, so just over one year ago they sued (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law).

Lower courts ruled in favor of the towns, striking down the zoning provisions of Act 13. The state appealed (and expedited) the rulings all the way to the state Supreme Court. The Supremes heard arguments in October (see PA Supreme Court Hears Testimony on Act 13 Zoning). Since then? We’ve waited for their decision on this vitally important case. Now we have a new wrinkle. One of the Supreme Court justices, Joan Orie Melvin, is being removed from office following conviction for a minor offense (she used state staffers and office space to assist her campaign for the high court). That leaves six justices, and a 3-3 decision is no good, and a real possibility…

Read More “PA Supreme Court Resignation Affects Act 13 Zoning Decision”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Former PA DEP Sec. Hanger Blasts Interim Replacement for Krancer
March 25, 2013March 25, 2013

Last Friday Gov. Tom Corbett announced the disappointing resignation of PA PA Dept. of Environmental Protection (DEP) Sec. Michael Krancer (see Developing… PA DEP Sec. Krancer Resigns). In comments clearly tainted by his own run for governor against Corbett, former DEP Sec. John Hanger (who served under Gov. “Fast Eddie” Ed Rendell) blasted the temporary appointment of Corbett’s deputy chief of staff, E. Christopher Abruzzo, to serve as acting secretary while a new person is found to fill the position.

Hanger called Abruzzo’s appointment “bizarre and irresponsible”…

Read More “Former PA DEP Sec. Hanger Blasts Interim Replacement for Krancer”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Newspaper Wants New CSSD Drilling Standards Adopted as Law
March 25, 2013March 25, 2013

Right on cue and easily predicted, a left-leaning (mostly anti-drilling) mainstream newspaper, the Scranton Times-Tribune, has published an editorial not only endorsing the new Center for Sustainable Shale Development (see Important: Drillers & Enviros Form New Group, Launch Cert Program), they’ve breathlessly posited the “brilliant” idea that the standards proposed by the CSSD should be adopted as regulatory law throughout Pennsylvania. Which of course was the endgame all along…

Read More “PA Newspaper Wants New CSSD Drilling Standards Adopted as Law”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Developing… PA DEP Sec. Krancer Resigns
March 22, 2013March 22, 2013

Big, late-breaking news as we go to press: Pennsylvania Dept. of Environmental Protection Secretary, Michael Krancer, is resigning his post effective April 15. The press release announcing his resignation states Krancer will return to private law practice and offers no further explanation. This is a surprising (to us) development…

Read More “Developing… PA DEP Sec. Krancer Resigns”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Research | Statewide PA

Out of the Shadows: Another New Group Wants to Regulate PA Shale
March 22, 2013March 22, 2013

Apparently the announcement that there’s a new kid in town when it comes to “regulating” Marcellus Shale drilling—The Center for Sustainable Shale Development (CSSD)—has prompted another group to stand up and say, “Me too! Me too! Look at me!”

MDN told you about the launch of the CSSD yesterday (see Important: Drillers & Enviros Form New Group, Launch Cert Program). In today’s Pittsburgh Business Times, we learn of yet another group that until now has met in secret, attempting (like CSSD) to craft new guidelines (let’s call them what they really are, regulations) for Marcellus Shale drilling. This new group is being run by the University of Pittsburgh’s Institute on Politics and includes some of the same participants powering the CSSD as well as Gov. Corbett’s energy executive and a representative from the state DEP. They call their group the “Shale Gas Roundtable.”

Perhaps feeling as though their work may have been upstaged by the CSSD’s announcement, the Shale Gas Roundtable came out of the shadows today…

Read More “Out of the Shadows: Another New Group Wants to Regulate PA Shale”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

More Groups Weigh In For/Against New Sustainable Shale Center
March 22, 2013March 22, 2013

More fallout from the launch of The Center for Sustainable Shale Development (CSSD), a new group aimed at slapping restrictive new rules on Marcellus Shale drillers (see Important: Drillers & Enviros Form New Group, Launch Cert Program). It seems MDN is not the only one to distrust the new group. On the other side of the drilling debate isle, the Sierra Club came out swinging yesterday—saying this new group will legitimize “dirty, dangerous fossil fuels, like natural gas” (they are a whacky bunch, aren’t they?).

John Hanger, former Secretary of the PA Dept. of Environmental Protection (now running for governor in PA), endorses the CSSD’s bullying approach of “get a certification from us or screw you” (our words, not his):

Read More “More Groups Weigh In For/Against New Sustainable Shale Center”
Chevron | CONSOL Energy | Energy Companies | EQT Corp | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Shell | Statewide PA

Important: Drillers & Enviros Form New Group, Launch Cert Program
March 21, 2013March 21, 2013

Two years ago, an informal group of high level leaders from both the Marcellus drilling industry (companies like Shell, CONSOL, Chevron and EQT) sat down with high level people from organizations trying to stop shale drilling (organizations like the Heniz Endowment, PennFuture, GASP and the Clean Air Taskforce), to see if both sides could agree on standards that would tell the world, “this activity is safe to do.” There were times, early on, when both sides thought the effort would be fruitless. But somewhere along the way, they “came together” and formed what was officially announced yesterday: The Center for Sustainable Shale Development (CSSD).

The CSSD proposes 15 new “performance standards” for those in the industry to follow—for drillers, midstream companies and in some cases the supply chain companies that work for them. Depending on your viewpoint, the CSSD and their standards are either a brilliant compromise that will make drilling safer and polish up the image of the industry, or a new group of mafia-like bullies out to force companies to pony up $30,000 to get certified “or else.” The group clearly wants (demands?) to be the certification body for Marcellus drillers, and if you don’t seek certification, they clearly intend to make you a pariah.

This MDN article will necessarily be much longer than most. We sat in on yesterday’s press conference by the CSSD (via phone), and will have our opinion as to the group, what they said, and what it means. We list our own summary of the 15 proposed new standards below (very important for those in industry to review this list). We also link to a number of other news accounts, so you can get other opinions.

The new CSSD has the power and potential to affect every single stakeholder in the shale drilling debate: from landowners to regulators to drillers and supply chain companies. Yes, it’s that important…

Read More “Important: Drillers & Enviros Form New Group, Launch Cert Program”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Clash of the (Marcellus) Titans: MSC vs CSSD
March 21, 2013March 21, 2013

Yesterday saw the launch of The Center for Sustainable Shale Development (CSSD), a new organization that aims to be the source that certifies drillers and other industry participants in the Marcellus Shale (see our companion story from today—very important to read it). Early in the press conference announcing the CSSD, the master of ceremonies and CSSD board member Robert “Bobby” Vagt (president of the Heniz Endowments) made a curious statement. He said the CSSD is “not simply about best practices” or “the how,” but is instead about “performance standards.” That statement immediately struck MDN as a swipe at the Marcellus Shale Coalition.

Has the gauntlet been thrown down?…

Read More “Clash of the (Marcellus) Titans: MSC vs CSSD”
Anti-Drilling/Fossil Fuel | Delaware County (PA) | Industrywide Issues | Pennsylvania | Statewide PA

PA’s Ranking Dem on House Enviro Committee Big-Time Anti-Driller
March 20, 2013March 20, 2013

Need proof that many (most?) of Pennsylvania’s elected Democrats are anti-drilling dunderheads who have gorged themselves at the man-causes-global-warming-we-must-quickly-end-the-use-of-all-fossil-fuels buffet? How about this opinion piece, written by State Rep. Greg Vitali (Delaware County), the ranking Democrat on the PA House Environmental Resources and Energy Committee:

Read More “PA’s Ranking Dem on House Enviro Committee Big-Time Anti-Driller”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Seneca Resources | Statewide PA

PA Enviro Groups Oppose Using Acid Mine Water for Fracking
March 18, 2013March 18, 2013

The Pennsylvania Dept. of Environmental Protection and elected officials want Marcellus drillers to help them with a big problem in the state: acid mine drainage. To solve two “problems” at once—lessen the amount of acid mine water that drains into PA waterways and supply water for fracking—PA encourages drillers to use acid mine water with the Environmental Good Samaritan Act and with a Consent Order and Agreement (see PA Wants Drillers to Use Acid Mine Water in Fracking – Will They?). PA’s efforts have started to pay off. Seneca Resources and at least 10 other drillers have started to use acid mine water for fracking.

However, just like a bad Western movie, extremist environmental organizations have ridden in to ruin the day. Legislation to encourage more use of acid mine water for fracking was recently introduced by a Democrat (!) Senate member. PennEnvironment and other “environmental activists” have sidelined the legislation…

Read More “PA Enviro Groups Oppose Using Acid Mine Water for Fracking”
Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA | Supply Chain

Marcellus Supply Chain: How Credit Union Targets PA Shale Workers
March 15, 2013March 15, 2013

MDN always marvels at the innovative ways businesses figure out how to market and do business in the Marcellus and Utica Shale drilling industry. Often referred to as “the supply chain,” businesses doing business in the shale industry is an often overlooked success story. We often hear about restaurants and hotels seeing a large increase in business, but numerous other businesses also benefit. Case in point: Utilities Employees Credit Union.

UECU has begun new marketing strategies to attract customers from those working in the Pennsylvania Marcellus Shale industry. Here’s their strategies to increase business from the Marcellus:

Read More “Marcellus Supply Chain: How Credit Union Targets PA Shale Workers”
Columbia Pipeline Group | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

Columbia’s SE PA Pipeline Project Includes Compressor Upgrade
March 15, 2013March 15, 2013

Columbia Gas Transmission, a subsidiary of Nisource, has applied to the Federal Energy Regulatory Commission (FERC) to add 16 miles of new pipeline in southeastern PA and NJ to help fire a natural gas-fired electricity generating plant with cheap Marcellus Shale gas. As part of that project, Columbia is upgrading a compressor station in Forks Township (Northampton County), PA. The interesting thing about the upgrade? The compressor station’s next door neighbors don’t mind at all…

Read More “Columbia’s SE PA Pipeline Project Includes Compressor Upgrade”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA House Dem Introduces Bill to Ban New Drilling on State Land
March 14, 2013March 14, 2013

Pennsylvania Democrat State Rep. Greg Vitali introduced a bill last week (H.B. 950, full copy embedded below) that would permanently ban the leasing of any additional state land for Marcellus Shale gas drilling.

Here’s Vitali’s announcement about the bill, with his reasons for introducing it (complete with obligatory eco-nut language like “old growth forests” and “fragile ecosystems”):

Read More “PA House Dem Introduces Bill to Ban New Drilling on State Land”
Industrywide Issues | Pennsylvania | Research | Statewide PA

New Study: PA Marcellus Shale Drilling Doesn’t Pollute Waterways
March 12, 2013March 11, 2013

A new research study published Monday in the Proceedings of the National Academies of Sciences shows that Marcellus Shale drilling in Pennsylvania does not pollute the state’s waterways—at least not appreciably. The paper is titled “Shale gas development impacts on surface water quality in Pennsylvania” (full copy embedded below) and looks only at surface water—not underground aquifers. The study is significant because it looks at nearly 5,000 shale drilling sites in the state, and according to the lead author, they “didn’t find evidence in waterways of significant chemical spills from drill sites.”

Read More “New Study: PA Marcellus Shale Drilling Doesn’t Pollute Waterways”
Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Marcellus Shale will Hit 10 Bcf/d in Production in 2013
March 12, 2013March 11, 2013

Another stellar article on the Seeking Alpha website by energy analyst Richard Zeits. This one takes a look at the Marcellus Shale and notes that something “inconceivable” even a few years ago will become true this year: The Mighty Marcellus Shale will hit 10 billion cubic feet of natural gas production per day. Wow!

Here’s how the article starts:

Read More “Marcellus Shale will Hit 10 Bcf/d in Production in 2013”
Economic Impact | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA

Latest Fed Beige Book Credits Shale with Economic Expansion
March 8, 2013March 8, 2013

Two days ago the Federal Reserve released their bi-monthly survey of regional economic trends, called “the Beige Book.” One of the stars in the current edition of the Beige Book (full copy embedded below) is the Marcellus and Utica Shale. Shale drilling is mentioned prominently for Region III (Philadelphia) and Region IV (Cleveland).

According to the Fed, shale drilling is expanding rapidly, and along with it an increase in banking, manufacturing and other sectors. Sort of “a rising tide raises all boats” theme.

Read More “Latest Fed Beige Book Credits Shale with Economic Expansion”