PA Cross Unit Drilling Advances After Senate Ctte Approves
Nobody seems to have noticed, or if they did notice they’re not reporting, what we consider big news: Yesterday the Pennsylvania State Senate Environmental Resources and Energy Committee “reported out” (i.e. approved) Senate Bill (SB) 694, the Senate version of House Bill (HB) 247, a bill which allows fully leased parcels that are part of one drilling “unit” to be combined with parcels in a different unit–“cross unit drilling.”
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A group of enviro-Nazis has sunk to a new low in their holy mission to block Marcellus Shale drilling. A group of colluding Big Green groups along with sympathetic (and sycophantic) “reporters” (i.e propagandists) from the Pittsburgh Post-Gazette are exploiting the pain and suffering of southwestern PA families of children who have cancer in their attempt to stop shale drilling. It’s disgusting and sick.
Energy Transfer continues to squabble with the Pennsylvania Dept. of Environmental Protection (DEP) over the fate of the still-closed Revolution Pipeline in western PA. In May the DEP issued an order to Energy Transfer, builder of Revolution, to “identify and restore or mitigate all streams and wetlands that it illegally eliminated or altered during the construction” of the pipeline (see 
Pennsylvania antis from the Philadelphia area who don’t want pipelines running through their neighborhoods (NIMBY types) have beat the drums of war so loud and for so long, they’ve finally begun to intimidate the non-partisan, shouldn’t-be-intimated PA Public Utility Commission (PUC). The PUC last Thursday launched a “major review of its safety regulations for hazardous liquids pipelines” in response to pressure from Mariner East 2 pipeline foes. It’s sad to see a government body cowed by a few loudmouthed troublemakers.
A Pennsylvania landowner thought he could finagle extra payments from XTO Energy after his land was drilled under from a neighboring property. The landowner had signed a lease, and the lease contains language that says if XTO were to drill “on” his property (i.e. install a well pad) the landowner would receive an extra payment. The landowner sued saying “on” also means “under” when XTO drilled under his property. The Superior Court of Pennsylvania disagreed, saying “on” means “on the surface” and “under” does not mean “on”.
Yesterday the Pittsburgh Business Times broke the news that Range Resources, one of the Marcellus/Utica’s biggest drillers (and in fact the very first driller to sink a Marcellus well, back in 2004), has laid off 40 employees–roughly 5% of its workforce. The layoffs are split between the company’s Pennsylvania and Texas operations.
We had high hopes for Steve Tambini, former vice president of operations at Pennsylvania American Water, when he was appointed Executive Director of the Delaware River Basin Commission in 2014 (see 
Two important pipeline projects, PennEast and Adelphia Gateway, are at various stages of approval. PennEast is a $1 billion (or $1.2 billion, depending on the source) new greenfield pipeline project from Luzerne County, PA to Mercer County, NJ. PennEast will flow PA Marcellus gas to markets in NJ. Adelphia Gateway is an old oil pipeline, already in the ground, that runs from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook. Adelphia will flow Marcellus gas to the Philadelphia region. PennEast was announced in 2014, and Adelphia in 2017. Neither has yet begun construction. What’s the status for each project?
President Trump is pushing members of his administration to work with state regulators in Appalachia–Ohio, West Virginia and Pennsylvania–to “build the country’s first natural gas and petrochemical hub” outside of the Gulf Coast. According to Energy Secretary Rick Perry, such a plan is in the the country’s national security interests. Members of the Trump team are also having discussions with leftists like NY Gov. Andrew Cuomo, to try and convince him to allow pipelines into and through the state. If states like NY won’t allow it, Perry holds out the hope/threat that the feds will invoke the Constitution’s interstate commerce clause to make them.
It looks like Pennsylvania Gov. Tom Wolf’s “promise them anything and everything” Santa Claus routine is working. We’re referring to Wolf’s so-called Restore PA plan that will provide (over a number of years) $4.5 BILLION worth of goodies to Pennsylvanians by slapping a Marcellus-killing severance tax on the already impact taxed shale industry. Legislation was introduced yesterday in the PA House to create Restore PA (House Bill 1585) and fund it with a severance tax, and we’ll be darned if there weren’t 99 House members who signed up to sponsor it (16 of them traitorous Republicans).
In March MDN brought readers a pair of posts about a new bill in the Pennsylvania House of Representatives, HB 247, which would allow fully leased parcels that are part of one drilling “unit” to be combined with parcels in a different unit–“cross-unit drilling” if you will (see 
Pennsylvania State Sen. Gene Yaw, Republican from Lycoming County, PA, seems to have changed his mind about a severance tax on Marcellus Shale production. The Marcellus Shale Coalition (MSC) visited Williamsport in Yaw’s home district yesterday. At a joint press conference to discuss the superiority of an impact fee to a severance tax, Yaw called those supporting a severance tax “bobbleheads.” Whoa, way to go Sen. Yaw! That’s a far cry from his vote in favor of a severance tax in 2017 (see 
In April MDN told you that Pennsylvania State Senators Camera Bartolotta (Washington County) and Pat Stefano (Fayette County) had beaten PA Gov. Tom Wolf at his own game by offering to pay for his so-called Restore PA plan, not by using a severance tax on shale production, but instead by allowing more shale drilling on PA state lands (see