AI | Anti-Drilling/Fossil Fuel | Industrywide Issues | Lackawanna County | Pennsylvania | Regulation | Statewide PA
Some PA Republican Lawmakers Getting Sucked into Anti-Data Center
Although there are legitimate concerns over data centers locating in populated communities (noise, water use, etc.), make no mistake: The anti-data center movement is nothing more than the anti-fracking movement in new clothes (see More Evidence that PA’s Anti-Frackers are Now Anti-Data Center). Unfortunately, some Republican lawmakers in Pennsylvania are getting sucked (and suckered) into supporting the anti-data center movement. They’re making a tragic mistake. Read More “Some PA Republican Lawmakers Getting Sucked into Anti-Data Center”
Yesterday, the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for October through December 2025 (full copy below). There were 129 new horizontal wells spud (drilled) in 4Q25, a big increase of 46 wells (+55%) compared to 4Q24. Natural gas production volume was 1,934 billion cubic feet (Bcf) in 4Q25 (same as 3Q25), up 63 Bcf (+3.4%) from 1,871 Bcf produced in 4Q24. The average Pennsylvania spot hub price was $3.08, an increase of $1.07 (+53%) from the prior year’s $2.01. All in all, it was a great fourth quarter for the PA Marcellus. The numbers are going in the right direction. However, the big news is annual production. 
Today, we revisit a topic that (at first glance) is a bit complex: a federal EPA regulation called Subpart OOOOc (“Quad O”), which addresses methane emissions from existing sources. Under the Biden administration, Quad O was twisted and used in an attempt to force oil and gas drillers, especially small conventional drillers, out of business. The policy was set, and the individual states were instructed to bring their own regulations and policies into compliance. But then the Democrats lost the White House. No worries…the Dems running the Pennsylvania Department of Environmental Protection (DEP) eagerly developed onerous regs to comply with the Biden EPA’s Quad O standards. The DEP’s regs are ready to go and could be adopted at any time. However, the Trump EPA delayed implementation of Quad O until 2027 while it works to revise or scrap it. 
PJM Interconnection, the electrical grid operator that covers Pennsylvania (along with all or parts of 12 other states and the District of Columbia), has once again caved to the political demands of PA Gov. Josh Shapiro to artificially cap prices in its upcoming capacity auctions for the next two years. PJM caved for the July 2025 auction (see 
On Wednesday, the Pennsylvania Senate approved Senate Bill (SB) 704, known as the Grid Stabilization and Security Act, sponsored by Republican State Senator Gene Yaw. This legislation directs the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) to collaborate to identify suitable sites for natural gas-powered electricity generation. By streamlining site preparation, the bill aims to address critical shortfalls in electricity generation on the PJM grid and attract new investment in baseload power, which has stagnated since 2019. 
Pennsylvania Governor Josh Shapiro (far-left Democrat) has a plan to address rising electricity costs by “increasing oversight” of investor-owned utilities, which he claims generate “excessive profits” at the expense of Pennsylvania ratepayers. That’s code for take them over and have the government (liberal Dems) run them. Last time we checked, we still live in the USA, land of the free and home of the brave. We don’t live in the USSR. 
In 2025, the Pennsylvania Department of Environmental Protection (DEP) achieved “historic success” by eliminating a longstanding permit backlog of over 2,400 applications. The DEP acted on more than 40,000 permits and conducted 116,364 inspections to ensure environmental safety. Key initiatives included the launch of the Streamlining Permits for Economic Expansion and Development (SPEED) program. The DEP is celebrating its success by creating a brand new bureaucracy: the Bureau of Permitting Coordination. Kind of a bureau of coordinating bureaus. (You know, the word bureaucracy comes from bureau, meaning a government department, and cracy, meaning rule. Literally, to be ruled by government bureaucrats who are not elected.) 
There’s just no other way to say this: Pennsylvania is on the cusp of flushing $92 billion down the toilet because resistance is preventing new data centers from being built. We’ve been warning about this danger for months (see 
Last Friday, the Trump administration officials joined several governors from the 13 states that are part of the PJM Interconnect grid to outline a broad plan they say will ensure customers of the grid will not face skyrocketing electric prices due to new AI data centers getting built in the region (see 
There are two universal, unavoidable truths of life: (1) death, and (2) Democrats love to tax anything and everything. Pennsylvania Democrats are urging state lawmakers to tax data centers to shield residents from rising energy bills. During a hearing held by PA House Democrats on January 20, so-called experts argued that data centers must “pay their own way” for grid upgrades necessitated by their high demand, rather than passing those costs to households. With grid operator PJM Interconnection warning that surging demand could cause blackouts, Democrats proposed legislation to protect ratepayers from price spikes. Although some officials value the industry’s job creation, tax proponents insist that ordinary consumers should not subsidize the infrastructure needed to support the state’s expanding and energy-intensive digital industry. 
On Friday, the White House joined with the 13 governors whose states in whole or in part are served by the PJM Interconnection electric grid, the largest grid in the country, to propose a solution that “protects consumers” from soaring electric rates due to the addition of new AI data centers (see 
In 2015, a group of landowners in northeastern Pennsylvania who had leased their land for fracking filed a lawsuit against Chesapeake Energy, Anadarko, Statoil (now Equinor), Mitsui E&P, and Access Midstream (later bought by Williams), alleging the companies had improperly deducted post-production costs (e.g., gas gathering and transportation expenses) from royalties owed to the landowners in breach of their respective leases. The lawsuit also alleged collusion and conspiracy to defraud the landowners (antitrust violations). The lawsuit was on hold for many years while other lawsuits played out. In 2024, a federal court in Scranton unpaused the lawsuit, and the judge ruled, tossing out the landowners’ royalty claims (see