Ultimatum to PA Gov: Withdraw RGGI Carbon Tax or No New PUC Appts
It’s nice to see Pennsylvania’s Republican legislators playing hardball with the out-of-control governor of Pennsylvania, Tom Wolf. Yesterday PA Senate Republicans wrote a letter to Gov. Wolf to advise him they will reject all future nominees to the state Public Utility Commission (PUC) until he withdraws his executive order joining the so-called Regional Greenhouse Gas Initiative (RGGI), a carbon tax scheme aimed at shutting down coal and natural gas-fired power plants in the state.
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State legislators in Pennsylvania are attempting to restore some sanity to overregulation inflicted by unelected bureaucracies in the state, like the Dept. of Environmental Protection (DEP). Republicans have introduced and are pushing along a couple of bills that will reign in the DEP (and other overzealous agencies) in PA. One bill requires the legislature to approve any new regulation that impacts a regulated community by more than $1 million. Another bill allows third parties to assist the DEP in reviewing and approving certain permits. The DEP can’t seem to get its act together and there are always loooong delays in approving new permits.
American Energy Partners, Inc. (AEPT), based in Allentown, PA, is a small but diversified company. They have their fingers in a number of different oil and gas pies, including subsidies in drilling, remediation, water, valuation services, and education. AEPT announced a new deal today to purchase three conventional oil and gas operators with assets in Western Pennsylvania and West Virginia for $10.8 million. The three operators (unnamed) come with a collective 467 conventional wells and 1,250 MMcfe/d of natural gas production.
Have you ever heard the trite but true phrase, “words mean things”? Never has that been more true than in Pennsylvania and the simple word called “royalty.” Somewhere along the way the word “royalty” got watered down and changed. A new bill being introduced by PA State Rep. Eric Davanzo (Republican from Westmoreland County) will clear up the confusion and bastardization of the term royalty, making it easy for everyone to know what can and cannot be deducted from royalties with respect to oil and gas leases.
In July 2020, PA Gov. Tom Wolf signed into law House Bill (HB) 732, a bill that grants tax breaks to companies willing to build brand new petrochemical plants in the Keystone State–plants that use huge quantities of Marcellus Shale gas (see 
When you see the words “environmental justice,” that’s just another way of saying racist–or the new shorthand “woke.” Pennsylvania Gov. Tom Wolf’s plan to participate in the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme assumes all fossil fuel-powered electric generating plants in the state are built in communities of color or in communities that are economically poor and therefore those communities can’t fight back against the injustice of being “polluted.” RGGI presumes fossil power plants are racist and sets out to correct the injustice by eliminating those power plants via taxing them out of existence.
Some days it’s tough. You try to keep your head held high, but then you read of someone you (used to) highly respect, someone like former Secretary of the Pennsylvania Dept. of Environmental Protection, Mike Krancer, who now supports Pennsylvania being forced to join the so-called Regional Greenhouse Gas Initiative (RGGI), which is nothing more than an obscene carbon tax that would force gas-fired power plants out of existence. Krancer bases his support on the flimsiest of excuses: That the tax revenues raised by RGGI (coming out of the pockets of ALL Pennsylvanians) will help plug a few more of the hundreds of thousands of old/abandoned conventional oil and gas wells throughout the state. Really Mike?
For years PA’s small, independent conventional oil and gas drillers have objected to the one-size-fits-all regulations concocted by the Wolf DEP that applies the same regulations to small conventional drillers as those used for big shale drillers. The two types of drilling are apples and oranges. Making small conventional drillers jump through the same hoops as big shale drillers will bankrupt many of the smaller companies. As in previous years, a bill will soon be introduced to separate the regulations for the two…
We don’t write much about Alta Resources, a shale drilling company co-founded by the inventor of shale fracking, George Mitchell. But that doesn’t mean Alta doesn’t drill in the Marcellus. In 2020 Alta was in the Top 10 PA drillers list (see 
In May 2020 the Pennsylvania Supreme Court heard oral arguments in a case challenging whether or not the state Attorney General’s office has the right to use a consumer protection law to prosecute companies like Chesapeake Energy and Anadarko over royalty payment shenanigans (see 
The Enervus U.S. rig count continues to climb (a very good sign). For the week ending March 24, the U.S. rig count climbed another 11 active rigs to 513. The oil-focused Permian Basin added eight new rigs. The Marcellus stayed even at 33 active rigs while the Ohio Utica picked up one active rig and now has 12 active rigs. The other major shale gas play, the Haynesville, stayed even at 47 active rigs.
In a very gentle and diplomatic way, Pennsylvania State Senator John Yudichak (Independent from Wilkes-Barre) told Department of Community & Economic Development (DCED) Secretary Dennis Davin on Monday he’s not doing his job. Yudichak told Davin “site selectors” (people who work with companies to select sites for big manufacturing and other types of facilities across the U.S.) aren’t aware of the tax credits available as part of Act 66, a law passed last year aimed at building new petrochemical plants in PA.