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    Potter County, PA Could Support 3K+ Shale Wells, Theoretically

    When it comes to shale drilling in the northern-tier of Pennsylvania, counties like Susquehanna (#1 producing county in the state), Bradford (#3 producing county) and event Tioga (#7 producing county) may come to mind. But what about the county west of Tioga–Potter County? Potter isn’t even in the top 10 producing counties in the state. But that doesn’t mean there’s not shale drilling activity. In July MDN reported that JKLM Energy (owned by Buffalo Bills owner Terry Pegula) is in the process of drilling a dozen Utica wells in Potter this year (see JKLM Drilling 12 Utica Wells in Potter County, PA This Year). The residents in the county are being proactive about promoting shale drilling in Potter. They’ve formed the Potter County Natural Gas Resource Center Steering Committee, complete with its own website. At a recent meeting of the Steering Committee, Penn State’s Jim Ladlee told attendees that Potter County could, theoretically, support 3,000+ shale wells. That certainly doesn’t mean it will ever see that many, but what it does indicate is that there is potential in Potter County far beyond the dozen or so shale wells currently planned. Here’s a report from the meeting…
    Read More “Potter County, PA Could Support 3K+ Shale Wells, Theoretically”

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    South Jersey Resources to Manage NatGas Supply for W PA Elec Plant

    South Jersey Resources Group has cut a five-year deal to provide natural gas for the Hickory Run Energy Station in Lawrence County, PA. Just two weeks ago MDN told you that the Hickory Run Energy Marcellus gas-fired electric plant planned for Lawrence County appears to be active and moving forward once again (see Signs of Life in Lawrence County, PA NatGas-Fired Electric Plant). Tyr Energy, a subsidiary of ITOCHU Corporation, purchased the Hickory Run Energy project in 2016 from LS Power Development. South Korea’s KB Asset Management announced they are investing $150 million in the project, which we said is “a sure sign that the pieces are now coming together for construction to begin.” Little did we know how prophetic those words were. Two days later, another report in the Korean Investors publication reported that French banking giant BNP Paribas has originated $460 million worth of loans for the project–of which the KB Asset Management investment is part (see Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?). The article also reported, “Ground has been broken for the plant.” Cool. Now another piece of this fast-moving puzzle falls into place. South Jersey Resources will contract for and supply natural gas to the plant, when it fires up…
    Read More “South Jersey Resources to Manage NatGas Supply for W PA Elec Plant”

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    Central PA Counties form Co-op to Expand NatGas Service Locally

    Juniata County just became the fifth central Pennsylvania county to join the SEDA-COG Natural Gas Cooperative. SEDA-COG stands for Susquehanna Economic Development Association – Council of Governments. Collectively, SEDA-COG is a group of 11 central PA counties. The other four counties that belong to the Natural Gas Cooperative include Clinton, Centre, Mifflin, and Perry. So what’s the big deal about this group? In 2013 MDN reported that SEDA-COG was working on an initiative to bring natural gas to more residents and businesses in their collective 11-county region (see Central PA Counties Cooperate on Infrastructure for More Gas Use). That cooperative effort eventually, in early 2016, gave birth to the SEDA-COG Natural Gas Cooperative group. Between 2014-2016 SEDA-COG conducted two studies to identify key targeted investment areas for establishment or expansion of natural gas service in its 11 member counties. Earlier this year, they issued a final report (full copy below). The report outlines ways in which the counties can cooperate to bring new gas infrastructure (distribution pipelines) to the region–delivering gas to homes and businesses. It is local government at its best, putting their heads together to benefit the entire region. The great news is that these central PA counties either have local shale wells, or are situated close to abundant shale production in nearby counties. Now it’s just a matter of getting folks hooked up to the gas…
    Read More “Central PA Counties form Co-op to Expand NatGas Service Locally”

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    Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well

    Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011. In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Range’s enviro crime? Methane migration from a well in Lycoming County, PA. The DEP says the Range well, drilled in 2011, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled say methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board (see PA DEP’s $8.9M Methane Migration Fine Appealed by Range Resources). In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We assumed that was the end of the matter. But alas, no. We now, finally, have an end. Both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” The paperwork (copy below) does not say what the terms of the settlement are. Both Range and the DEP are being mum about the terms…
    Read More “Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well”

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    EIA: Gas Processors Key to Rapid Growth in Marcellus/Utica

    Ever hear the old proverb: “Success has many fathers, but failure is an orphan.” There are many reasons, many “fathers” for why the Marcellus/Utica region has become the highest producing natural gas region in the U.S. We have great shale rock. We have a lot of shale rock. We’re located close to major markets. We have a large and ready workforce. Increasingly, we have pipeline infrastructure to move the gas to new markets. All of those things contribute to the success of our region. But there’s one element that is critical, but often overlooked–gas processing and fractionation. Gas processing cleans up the hydrocarbons coming out of the ground–removing water and impurities, and separating methane (i.e. natural gas) from natural gas liquids (NGLs). Fractionation further separates NGLs into their components–ethane, propane, butane, pentane, etc. The U.S. Energy Information Administration (our favorite government agency) published an article yesterday looking at they critical role played by processing and fractionation in the Marcellus/Utica. They point out that when the shale revolution really began to take off in our area, circa 2010, we had roughly 1.1 billion cubic feet per day (Bcf/d) of gas processing capacity. In 2016, that number had zoomed up by a factor of nearly 10, to 10 Bcf/d of gas processing capacity. Without the ability the process the gas, it can’t be sold. One of the main “fathers” of success in the Marcellus/Utica, is processing…
    Read More “EIA: Gas Processors Key to Rapid Growth in Marcellus/Utica”

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    Antis Continue to Fight Inevitable NEXUS Pipe, Change Strategies

    Anti fossil fuelers committed to stopping (NOT rerouting) the newly approved NEXUS Pipeline in Ohio continue to pin their hopes on a meritless lawsuit against the Federal Energy Regulatory Commission (see CORNballs Strike Again, File Lawsuit to Stop NEXUS Pipeline). However, just in case that doesn’t work (which of course it won’t), members of the Coalition to Reroute NEXUS (or CORN, folks we call CORNballs), have two more strategies up their sleeve which they hope will work. The first is to convince the Ohio EPA to deny a federal stream crossing permit for the project. That tactic worked in Communist New York State, so they hope maybe it will work in Ohio. Second, if all else fails, a couple of CORN members are running for the local town board in the districts where they live (in Media County). No doubt they plan to make mischief at the town board level, perhaps by introducing/passing illegal zoning ordinances to try and slow down or stop NEXUS…
    Read More “Antis Continue to Fight Inevitable NEXUS Pipe, Change Strategies”

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    3rd University of Cincinnati Finds No Problems with Utica Fracking

    The University of Cincinnati (UC) has now used $470,000 of taxpayer money for three research studies (over the past four years) to study the health effects of Utica Shale fracking. One of the studies dealing with ambient air pollution (published in March 2015) had such major errors the authors retracted it in June 2016 (see Ohio Air “Study” Near Frack Sites Retracted for Basic Math Error). Kind of embarrassing. Another study was completed 18 months ago, looking at potential issues of fracking on nearby water wells in Ohio. That study was funded, in part, by anti organizations who didn’t like the findings–that there IS NO negative impact of fracking on groundwater. So they’ve hushed it up and have refused to allow it’s publication (see Chorus Grows Louder for U of Cinci to Release Fracking Study). Now come leaks that a third research project has been completed at UC, once again looking at air samples near fracking sites–this time looking for elevated levels of volatile organic compounds (VOCs) and formaldehyde. The findings are that, “none of the air sample averages exceeded EPA levels of health concern.” Looks like yet another UC study that will get buried and never see the light of day…
    Read More “3rd University of Cincinnati Finds No Problems with Utica Fracking”

  • Marcellus & Utica Shale Story Links: Wed, Aug 30, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Columbiana County, OH to get jobs, tax boost from NEXUS Pipeline; energy groups fight back against radical efforts to shut down Dakota Access Pipeline; Harvey’s widespread destruction tests US shale; O&G companies respond to Harvey crisis with millions in donations; the next tech wave in drilling; trimming produced water costs; electric vehicles a boon for gas-fired plants; Russian Gazprom profit plunges 80% in Q2; Nigeria supplies stranded industries with LNG tanker trucks; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Aug 30, 2017”

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    Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1

    Atlantic Sunrise Pipeline – click for larger version

    An important piece of Williams’ $3 billion Atlantic Sunrise Pipeline project, meant to flow Marcellus gas to new markets in the Mid-Atlantic and southeast, is about to go online in the next few days. You read that right. Most of the coverage here on MDN with respect to the Atlantic Sunrise project has been about the most controversial part of the project–183 miles of new “greenfield” (brand new) pipeline construction that will happen in Pennsylvania–a project referred to as the Central Penn Line. Small groups of antis in places like Lebanon and Lancaster counties have vigorously opposed the new pipeline portion of the project in their communities. However, upgrades to several compressor stations and fixes to the existing Transco pipeline as it runs through states like Maryland and Virginia are also needed in order to make Transco bi-directional–able to continue flowing gas from the Gulf to the northeast, but now, also able to reverse and flow gas from the Marcellus/Utica in the other direction. Although the greenfield portion of the project has not yet begun (should in the next few weeks), the “brownfield” or tweaks to the existing pipeline/compressor stations has been underway, since February, and is now ready. The Federal Energy Regulatory Commission (FERC) has just granted Williams permission to bring the new tweaks online, which will allow Transco to reverse and flow an extra 400 million cubic feet per day (MMcf/d) of natural gas from Lancaster County, PA all the way to Choctaw County, Alabama…
    Read More “Williams Atlantic Sunrise Project to Begin Partial Service on Sept 1”

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    Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again

    A Broome County, NY judge ruled yesterday that the Town of Fenton Planning Board did not take a hard enough look at environmental and traffic issues related to their approval of NG Advantage’s plan to construct a facility in the town to compress and load natural gas onto tractor trailers for delivery to regional customers who desperately need the gas–what is called a “virtual pipeline.” MDN has chronicled the project from the beginning (see our NG Advantage stories here). Yesterday’s ruling was not an indictment of the project itself by the judge–only the way in which it was approved by the local town planning board. The judge left the door open for the town to re-do it’s approval process–this time including a full environmental impact study and an aquifer study. NG’s CEO Rico Biasetti said that while he is disappointed, the company remains committed to building the facility at the Fenton location and will work with Fenton to try again…
    Read More “Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again”

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    OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands

    Ohio Gov. John Kasich (RINO) promised, five years ago, to allow shale drilling on state-owned forests and parks. He promptly then reneged on his promise. The way Kasich blocked drilling was to refuse adding new members to the Oil and Gas Commission, charged with approving potential drillers on state land. Kasich created a de facto moratorium that prevents fracking on state-owned land. In May of this year, Republican legislators, tired of Kasich’s recalcitrance, added a “little-noticed provision” in the state budget deal that will give the legislature, and not the governor, the power to select members of the Ohio Oil and Gas Commission (see Ohio Legislators Push to Allow Fracking in State Parks, Forests). Kasich vetoed the measure but legislators overrode the veto. As we reported in July, Kasich was on the verge of losing his power to block state land drilling (see Ohio Gov Kasich About to Lose Power to Stop Drilling on State Land). Faced with humiliating defeat, Kasich decided to act and is now reportedly “working hard” to get the appointments made…
    Read More “OH Gov Kasich Finally Caves, Will Allow Drilling Under State Lands”

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    Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit

    Exactly two years ago, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories)–filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca, PA (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board–a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups want fenceline monitoring and restrictions on flaring. Shell caved and gave them most of what they want, signing a settlement agreement last Friday (copy below). Shell did win one important concession: the litigious Big Green groups can’t sue Shell over any of their wild claims in the original filing…
    Read More “Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit”

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    Allegheny Institute: PA Impact Fee is Better than a Severance Tax

    The Allegheny Institute is out with another top notch policy brief. This one tackles the state’s existing impact fee and addresses the issue of why revenues from the impact fee have slid over the past several years. The Institute is not denigrating the impact fee, but lauding it as a better system of taxation than a severance tax. The Allegheny Institute exists to conduct research, education and advocacy work in a mission to defend taxpayers and businesses against burdensome taxation, inefficiency and intrusiveness of an ever expanding government–a pretty tall order because government at all levels is always expanding, like a voracious monster. Think of the Allegheny Institute as a mini version of the Heritage Foundation–focused specifically on Pennsylvania. The newest brief, titled “Shale Gas Impact Fee Revenue Continues to Slide” (full copy below) takes an honest, and hard look, at the impact fee. Researchers conclude that slapping a severance tax on top of the impact fee would be a disaster and violate the state’s commitment to drillers when they passed the impact fee…
    Read More “Allegheny Institute: PA Impact Fee is Better than a Severance Tax”

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    CIA Veteran Says Russia Funneling Money to Va. Anti-Pipe Groups

    An extensive expose appearing on The Daily Signal blows the doors off collusion and money funneling from Russia to several Big Green groups using that money to oppose pipeline projects, including opposition to the Mountain Valley Pipeline and Atlantic Coast Pipeline projects here in the Marcellus/Utica region. A 29-year CIA veteran does a masterful job of connecting the dots between the Kremlin and so-called environmental groups that are using Russian money to oppose these American, much-needed pipeline projects. Group allegedly receiving Russian money include Virginia Organizing, Preserve Montgomery County and Friends of Nelson County in Virginia. Nationally, groups on the take with Russian money include the Natural Resources Defense Council, Sierra Club, and League of Conservation Voters Education Fund. Are they committing treason? We report, you decide…
    Read More “CIA Veteran Says Russia Funneling Money to Va. Anti-Pipe Groups”

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    PA DEP Raising Shale Well Permit Fee Later This Year

    The Pennsylvania Dept. of Environmental Protection has put drillers (and everyone) on notice that it will bump up the fee to file for a permit to drill a Marcellus Shale well. Prior to 2013, the permit fee for a new Marcellus well was $3,200. In 2013 the DEP bumped it up by 56%, to $5,000 (see Higher Marcellus Permit Fees Coming for PA Drillers). The DEP says statutorily it must review the fee “every three years” and now is the time (past time, really). The DEP is signaling “the need for a fee increase.” How much? The DEP is being coy about what kind of a jump they plan this time…
    Read More “PA DEP Raising Shale Well Permit Fee Later This Year”

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    NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline

    There’s been an interesting twist in the saga of National Fuel Gas Company’s (NFG) Northern Access Pipeline project. The $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. The Federal Energy Regulatory Commission (FERC) granted final approval for the project in February of this year (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). Shortly after, NFG filed a request with FERC (in March) to bypass the New York Cuomo-corrupted Dept. of Environmental Conservation (DEC) because the DEC was dragging its feet on a decision to grant stream crossing permits for the project (see Gutsy: NFG Asks FERC to Cut NY DEC Out of Pipeline Approval). Needless to say, the DEC didn’t like it. In April of this year, the DEC ruled against granting the project stream crossing permits, effectively killing it, at least for now (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). After DEC’s denial, NFG sued the DEC in the Second Circuit of the U.S. Court of Appeals to overturn their denial (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). OK, now is where it gets interesting. A similar court case was filed by the Constitution Pipeline against the DEC with the 2nd Circuit. The court ruled against the Constitution and for the DEC on August 18 (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). We’re sure NFG can see the writing on the wall for their lawsuit. So NFG has gone back to FERC and their request filed back in March that FERC bypass the DEC and go ahead and grant permission anyway. NFG made a motion for an “expedited request” by FERC last week. What if FERC agrees and overrules the DEC? And what if they don’t?…
    Read More “NFG Asks FERC for Speedy Re-hearing to Bypass NY DEC re Pipeline”