Marcellus Industry Wants Biden EPA to Modify Onerous Reg
The Bidenistas waited until the UN’s 2022 Climate Change Conference, called COP 27, was up and running (in Egypt) before going to Egypt in November to announce their latest attack on the oil and natural gas industry. At COP27 in Sharm el Sheikh, Egypt, the U.S. Environmental Protection Agency (EPA) announced it is “strengthening its proposed standards to cut methane and other harmful air pollution” in the oil and gas industry. In other words, yet another massive power grab in attempting to regulate oil and gas at the federal level, instead allowing O&G to be regulated at the Constitutionally-designated state level. The Marcellus industry in Pennsylvania is hoping it can work with the EPA to blunt the onerous rule they know is coming. Good luck with that.
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There are advantages and disadvantages to being publicly or privately owned. In the oil and gas sector, most large companies are publicly owned–meaning they have a board of directors, and the “owners” hold shares of stock in the company, shares traded on public exchanges. In the Marcellus/Utica, most of the top drillers are publicly owned: Range Resources, Coterra Energy, CNX Resources, EQT Corporation, Antero Resources, Southwestern Energy, Repsol, National Fuel Gas Company (i.e. Seneca Resources), and Gulfport Energy. Several others are privately owned, including Ascent Resources (Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S.), Greylock Energy (based in West Virginia), and Olympus Energy (which drills in the Pittsburgh suburbs).
Yesterday MDN brought you the news that as of Friday, a new regulation controlling volatile organic compound (VOC) emissions, and by extension methane emissions, for Pennsylvania’s conventional oil and gas drillers went into effect (see 
This morning the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for July through September 2022 (full copy below). There were 158 new horizontal wells spud (drilled) in 3Q22, an increase of 47 wells (+42%) compared to 3Q21. However, natural gas production volume was 1,878 billion cubic feet (Bcf) in 3Q22, a slight decrease (-0.8%) from 3Q21. It is the third quarterly decrease in production in a row (comparing the same quarters year-over-year). However, 3Q22 production was up slightly (+1.4%) from 2Q22.
This one came right out of left field, and we didn’t see it coming. Totally unexpected. Yesterday, outgoing U.S. Senator Pat Toomey, from Pennsylvania, introduced a bill to reform pipeline permitting. The bill specifically approves and would push through final construction for Mountain Valley Pipeline (MVP), a pipeline that doesn’t even touch PA (it starts in Wetzel County, WV, and ends in Pittsylvania County, VA). The bill was concurrently introduced in the House by Congressman Mike Kelly, also from PA. Weird. Does this bill stand even a remote chance of passing before Congress adjourns and the next Congress takes over in early January?
Updates for Pennsylvania’s conventional oil and gas drillers, both environmental protection standards and waste handling standards (two different updates), will now fall to the incoming Josh Shapiro administration. So says the Acting Secretary of the Dept. of Environmental Protection (DEP), Kurt Klapkowski. In other words, Klapkowski and his boss, Gov. Tom Wolf, are punting these important updates to the anti-drilling Shapiro. Washing their hands of it.
Three weeks ago, one of the ten natural gas storage wells at the Equitrans Rager Mountain Gas Storage Area in Jackson Township, Cambria County (in Pennsylvania) began to leak and ended up leaking roughly 100 million cubic feet per day (MMcf/d) of gas into the atmosphere (see 
Yesterday the Pennsylvania Environmental Quality Board (EQB), a part of the PA Dept. of Environmental Protection, voted to adopt a last-minute, rushed-through-in-a-hurry regulation to control volatile organic compound (VOC) emissions (and by extension, methane emissions) from conventional oil and gas operations in the state. The DEP and EQB had more than five years to work on these regulations and chose to fritter away the time. Faced with losing federal highway budget money without a new regulation in place, they rushed it–and botched it. Now the mom-and-pop oil and gas companies across the state will pay the price (and some will go out of business).
The Bidenistas continue their drive to kill fossil energy production in this country. The latest attack comes from the Bureau of Land Management (BLM), a part of the Dept. of Interior. Earlier this week, the BLM released a new draft regulation to “address the waste of natural gas during the production of oil and gas on federal and Tribal lands.” Sounds like a good thing, right? The regulation will force expensive new equipment to be purchased, enforce new methods to reduce methane emissions, and in general, bury both new drillers and existing producers under mountains of paperwork required to prove wells aren’t leaking methane. One of the places this proposed new reg will affect is the Allegheny National Forest (ANF) in northwestern Pennsylvania.
Last week the Pennsylvania Independent Regulatory Review Commission (IRRC) voted to approve the Pennsylvania Dept. of Environmental Protection (DEP) and its Environmental Quality Board’s (EQB) rammed-through (in a rush) regulation to control volatile organic compounds (VOCs), and by extension methane, for conventional drilling sites throughout the state (see