Missing Pieces of M-U Hydrogen Puzzle: Regulations & Permitting
Three advocates for Appalachian hydrogen and carbon capture projects–two lawyers and the head of Appalachian Energy Future–say that Pennsylvania (and Ohio and West Virginia) are missing key pieces of the hydrogen puzzle before a billion-dollar hydrogen hub can become a reality in any of those states. The missing pieces are permitting and regulations.
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As we mentioned in passing in our post yesterday about Pennsylvania Gov. Josh Shapiro’s first budget, one of the items in his budget (and in his speech) was support for a $1 billion hydrogen hub project in the Keystone State (see
Newly-elected Pennsylvania Governor Josh Shapiro unveiled his first-ever budget yesterday, and it was a whopper, coming in at $44.4 BILLION. We were keeping an eye on his budget for two primary things: (1) Does it include a severance tax? (2) Does Shapiro plan to get revenue from the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme? For the first, the answer is no. Thankfully, Shapiro did not lobby nor request a Marcellus-killing severance tax. Which is sure to tick off the left. However, it was a mixed bag because the budget DOES assume RGGI will kick in and provide the state with $663 million in proceeds for 2023-24. Wait, you thought Shapiro was against RGGI following his comments slamming it? Surely you’re not that dumb?
Some 18 pro-business groups in Pennsylvania joined forces to send a letter to newly-elected Gov. Josh Shapiro and every member of the PA legislature. The letter, spearheaded by the PA Chamber of Business and Industry (also the Marcellus Shale Coalition and the American Petroleum Institute of PA), congratulates Shapiro and all those winning election or reelection. It was a verbal slap on the back. But the letter goes on to request all of these newly elected officials to work together to promote domestic energy production in the Keystone State. In other words, Why can’t we be friends?
Could air pollution related to drilling shale wells affect those who live nearby? In particular, does shale drilling negatively affect the health of older folks (over age 65)? How would we know if it is affecting their health? Researchers set out to answer that question by analyzing Medicare data for older folks who live near Marcellus drilling in Pennsylvania, comparing the data with older folks who live in nearby New York, where there is no Marcellus drilling. The researchers conclude that living near shale drilling increases the likelihood of old folks having a heart attack, stroke, and other cardiovascular issues.



Isn’t it typical for Democrats to try and use a crisis that has nothing whatsoever to do with shale and natural gas to block shale and natural gas? Seven members of Pennsylvania’s Congressional delegation, every single one of them a Democrat, sent a letter (copy below) to another Democrat, Secretary of Transportation Pete Buttigieg (an incompetent nincompoop), asking him to permanently delete a rule adopted during the Trump administration that allows LNG to be safely transported by special rail cars. The reason cited for banning LNG by rail? The train derailment in East Palestine, Ohio–an event that has nothing whatsoever to do with shale energy.
On February 15, 2023, the Supreme Court of Pennsylvania agreed to hear the case Dressler Family, LP v. PennEnergy Resources, LLC, a case addressing the question of whether Pennsylvania is an “at-the-well” jurisdiction, or a “first-marketable product” jurisdiction. The case may have profound implications for Pennsylvania landowners and drillers. The issue in this case revolves around whether or not a driller is allowed to deduct expenses from royalty payments for transporting and cleaning up natural gas between the well and the point of sale. Can a driller claim post-production deductions even if there are clauses that prohibit them?
We have a second article today dealing with post-production deductions in Pennsylvania oil and gas leases. Although this is an “in the weeds” legal article, it’s worth your time and attention (if you are a PA landowner or driller) to read it and understand it. The lawyers at Houston Harbaugh, P.C. have discovered an ingenious way of exposing “net back pricing” and claiming post-production deductions under market enhancement royalty clauses as being hypocritical–by using a clause found in some leases that allows “free gas.”
Big Green is Big Business–especially in Pennsylvania, where leftist groups routinely file a blizzard of lawsuits against the shale industry. Some Big Green groups receive funding from foreign sources, including Russia and China. They seem to have endless pools of money to litigate every square inch of new pipeline and every proposed new well pad. As if being repeatedly sued isn’t enough, these disgusting groups want the fossil fuel industry to pay them for their lawyers! When the groups are the ones filing the lawsuits!! The Democrat judges of the Pennsylvania Supreme Court, in a poorly reasoned decision issued yesterday, have granted Big Green the power to sue, and then get paid for suing.
Last summer then-Gov. Tom Wolf instructed the Pennsylvania Dept. of Environmental Protection (DEP) to conduct a comprehensive review of conventional oil and gas driller compliance with an eye on locating enough dirt to justify creating onerous new regulations for the industry (see
Pennsylvania State Rep. Martin Causer, Republican from Bradford (McKean County), PA, is introducing a new bill to prohibit PA municipalities from banning the installation and use of natural gas stoves and furnaces. “Pennsylvanians deserve better than to have their freedom restricted by an overly involved government that thinks it knows better than they do,” Causer wrote in a memorandum to his fellow House members, asking them to join him in co-sponsoring the bill. In our opinion, every single Republican member of the PA House should be listed as a co-sponsor of Causer’s “energy freedom” bill.
The difference between the Susquehanna River Basin Commission (SRBC) and the Delaware River Basin Commission (DRBC) is stark. The former is well-run and rational, the latter is disorganized and irrational. At least with respect to fracking. Over the weekend, the SRBC published a notice in the Pennsylvania Bulletin to announce that during the month of January, the agency approved 38 requests for daily water use on shale well pads in the SRBC’s jurisdictional territory in Pennsylvania, totaling some 233.5 million gallons. Put another way, this is a handy list of where drilling will soon happen in northeastern PA.