Anti Groups Panic, Demand Govs Ban Fracking in Dela. River Basin
Radical anti-fossil fuelers with THE Delaware Riverkeeper and New Jersey Sierra Club, along with a mish mash of other fringe “environmental” groups, are becoming shrill in their demand that fracking be permanently banned in the Delaware River Basin. Riverkeeper, Sierra Club and other nutjob groups are this week delivering a petition they claim has over 63,000 signatures (many of them made up or dead) calling on the governors of the four states that are part of the Delaware River Basin Commission (DRBC) to vote to permanently ban fracking in the DRBC’s jurisdiction. Each day this week the group of, whatever you call them, are delivering the petitions in staged media events, in each state capital. These groups have wanted and lobbied for a permanent ban for years. Why push so hard for it now? What’s the urgency? Why go on the road now to demand an outright ban? There is only one reason we can think of for why these radicals are pushing so hard now: they are running scared, concerned that a lawsuit by a Wayne County landowner in federal court will go against the DRBC and finally force the issue, allowing fracking (see Wayne County Landowner Files Brief in Case Against DRBC Frack Ban). Once fracking begins in the Delaware River Basin–and let us assure you, it will–and once everyone sees that fracking is safe and has zero impact on drinking water supplies, the lie anti-frackers have pedaled since Josh Fox and Gasland will be exposed for all to see. That’s why they are in a panic, “demanding” that fracking be banned, NOW. They need to get it banned before the judge makes a decision to allow it…
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New York City needs more natural gas pipelines–and it needs them BAD. That’s the upshot of a newly released report from the New York Building Congress, a trade group representing some 450 other building-related trade groups with 250,000+ members. The report, titled “Electricity Outlook: Powering New York City’s Future” (full copy below) says NYC needs more pipelines built before the Indian Point Nuclear plant closes in 2021–both for electric generation (to replace Indian Point’s electricity) and because of the prohibition coming on heavier fuel oil used for wintertime heating. Interesting (and mind-blowing) fact: 81.5% of the electricity flowing in the five boroughs of NYC comes from natural gas-fired electric plants. The report calls for the Federal Energy Regulatory Commission to promptly approve Transco’s Northeast Supply Enhancement Project, when FERC has a quorum, which will flow more PA Marcellus gas to NYC and New Jersey. The report also calls on officials to approve Millennium Pipeline’s expansion request in Upstate. Of course the irony is not lost on those of us who live in Upstate New York–the irony being that we could be the ones providing at least some of that natural gas to our cousins in the City, if sleazeball Gov. Andrew Cuomo hadn’t banned fracking. So yes, New York needs more natural gas and needs it asap, but New York has banned the production of it–so we’ll have to get it from places like Pennsylvania, Ohio and West Virginia instead. Bad for us, but good for them…
West Goshen Township, in the Philadelphia suburb of Chester County, has won a short-lived, temporary victory in their efforts to stop Sunoco Logistics’ Mariner East 2 NGL pipeline in its community. Last March MDN told you about the desperate last stand taken by liberal anti-pipeliners in West Goshen (see
Can proposed NGL storage facilities in the Marcellus/Utica benefit the environment? The answer is a resounding, YES! How? First you must understand what an NGL is, and why we have so much of it in the northeast. NGL stands for natural gas liquid. When you drill a hole in the ground to extract oil, or natural gas, you almost always get not only oil, but natural gas (and vice versa). In addition, you also get NGLs. They are all hydrocarbons with slightly different atomic configurations. NGLs include propane, butane, isobutane and ethane. Aside from natural gas (or oil), the most common hydrocarbon coming out of a well is ethane. Ethane, as it turns out, is quite useful. It can be “cracked” chemically and turned into ethylene, which is the raw feedstock for manufacturing plastics, among other things. We have at least one ethane cracker plant coming in our neck of the woods–Shell’s cracker plant in Beaver County, PA (near Pittsburgh). Another one is likely to get built by PTT Global Chemical–in Belmont County, OH. Other smaller plants that process ethane are also likely to get built. They all need a ready supply of ethane. Enter storage hubs–huge underground caverns to store NGLs until they can be used. Mountaineer NGL Storage is close to beginning work on such a facility (see
Since 2012, Pennsylvania has collected the equivalent of a severance tax from Marcellus Shale drillers via something called an impact fee. Same concept as a severance tax. You drill a well, gas comes out, you pay a tax. Except with an impact fee you pay whether or not anything comes out of the ground, meaning an impact fee is superior to a severance tax, which is based on how much comes out of the ground. The impact fee quickly started to generate hundreds of millions of dollars a year in extra revenue for Pennsylvania–60% of which goes back to the communities where drilling happens (which Philadelphia politicians hate), and 40% of which goes to the black hole of Harrisburg for redistribution (which Philadelphia politicians love). Drilling began to slow in 2014, and crashed in 2015/2016, with low low commodity prices for natgas. The impact fee doled out this year is based on revenues raised last year, in 2016, during the worst part of the downturn. So it’s no surprise that impact fees collected and distributed this year, in 2017 have been the lowest since the impact fee began (see
For years anti-drillers have used the word “frack” and “fracking” as a pejorative, to try and smear the oil and gas industry. The word is shortened from “hydraulic fracturing” and meant to connote a “naughty” word of similar sound. The supremely untalented Julian Lennon (son of Beatle legend John Lennon) and his stepmom, Yoko Ono, went on Jimmy Fallon’s show a few years ago to sing a song called “Don’t Frack My Mother” (watch it below). That’s the mentality of anti-drillers. The word “frack” is short, sounds like something dirty, and is useful for protest signs, bumper stickers, and songs. Never mind that fracking is only one small part of the success in extracting shale oil and gas. The larger, arguably more important technological breakthrough is horizontal drilling. But it’s hard to shorten “horizontal drilling” into a bumper sticker slogan that sounds dirty. So back in 2013 we offered to enhance the fracking phrase (see
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: PA’s Environmental Rights Amendment revisited; Butler County 3rd in SWPA for natgas production; corp raiders target NRG Energy; Trump names more nominees to EPA; electric vehicles are unsustainable (without subsidies); Schlumberger looks to take a bite out of Wall Street’s lunch; Halliburton back in the black; low oil prices pressure OPEC; and more!
Last Thursday some 450-500 supporters, oil and gas industry workers and politicians gathered at the Shadowbrook Golf Course in Wyoming County, PA to express support for Williams’ $3 billion, 198-mile Atlantic Sunrise Pipeline project, most of which will get built in northeast Pennsylvania. The event was organized and sponsored by Cabot Oil & Gas, one of the major beneficiaries of the pipeline, and Williams, which will build and operate the pipeline. The overall purpose of the event was to give a metaphorical kick in the rear-end of Gov. Tom Wolf and his Dept. of Environmental Protection (DEP), which appears to be intentionally dragging its feet with granting stream crossing permits–about the only thing left before the backhoes fire up and start digging. The event, held from noon to 2pm, began with lunch–barbecue pulled pork and chicken–followed by a series of short speeches by political leaders from the region. With people gathered at tables, and some standing, a half dozen speakers stood on a giant flatbed trailer underneath what has to be the biggest American flag MDN editor Jim Willis has ever seen, hoisted and held between two large cranes (see the pic). The upshot of the speeches can best be summarized in a single statement delivered by Alan Hall, Chairman of the neighboring Susquehanna County Board of Commissioners, when he said: “It’s time to kick the politicians in the ass and get this [pipeline] done.” There were some other great one-liners too…
Apparently under pressure from environmentalist wackos, last Friday the Pennsylvania Dept. of Environmental Protection (DEP) issued a statement that says, in essence, we’re on the back of Sunoco Logistics over problems with construction the Mariner East 2 Pipeline. Gov. Wolf and DEP Secretary McDonnell both felt it necessary to voice their “concerns” over some of the episodes that have happened with construction the twin Mariner East 2 NGL pipelines that will stretch from eastern OH to the Philadelphia area. According to the announcement, the DEP has so far issued 4 “Notices of Violation” and 1 “Consent Order and Agreement” with a fine of $87,600 for “inadvertent returns” (what we call leaks) of drilling mud and water at an underground horizontal directional drilling (HDD) location in Cumberland County, PA. To the best of our knowledge, this is the first we’ve heard of that spill. It was actually a series of spills (or leaks) over a number of different days. All told, some 160,000 gallons of drilling fluids came out of the ground at that location. In addition, the DEP released a table outlining 49 incidents–some just a few gallons, others several hundred (or several thousand) gallons of drilling fluid leaks. We have the list of 49 problem areas below, the details on the Cumberland County leaks, and the DEP announcement…
In May MDN brought you the news that the Ohio Environmental Protection Agency (OEPA) was going after Rover Pipeline for failing to properly plan storm water management which resulted in heavy storm water runoff into farmers’ fields where Rover is digging trenches (see
Washington County, OH, along the southeastern tip of active Utica drilling, has never been known as a hotbed of Utica drilling. However, there is at least some drilling in the county. In 2016 and the first quarter of 2017 there were eight (8) active Utica wells producing hydrocarbons–gas and oil and NGLs. Those eight wells are owned by three companies: Edgemarc Energy, Protege Energy and PDC Energy. PDC, you may recall, announced in May that it has put all of its remaining Utica assets up for sale, including wells/land in Washington County, so it can use the proceeds to drill for oil in Texas and Colorado (see
The CORNballs of Ohio continue to try and shut down the $2 billion, 255-mile NEXUS interstate natural gas pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. CORN stands for Coalition to Reroute NEXUS. CORNballs is what we affectionately call the group–as a way of pointing out their nutty true purpose–to try and shut the NEXUS project down. Period. Their aim has nothing to do with “rerouting” and everything to do with shutting it down. In May 2017, the CORNballs revealed their true colors when they filed a lawsuit in federal court in Akron, OH (see
The “most serious remaining legal challenge” to Sunoco Logistics’ Mariner East 2 Pipeline project is a challenge by the odious Big Green group, the Clean Air Council, based in Philadelphia. CAC claims in a court case in Common Pleas Court in Philly that ME2 violates the federal and state constitutions. The case takes up constitutional claims that have “not yet been addressed in other litigation.” It dawned on us when reading an account of the case and who says what about whether or not Sunoco has the right to use eminent domain and whether or not ME2 is a public utility, is why does the CAC even care? Why are they the ones bringing the lawsuit? After all, pipelines don’t pollute the air! Well, technically that’s not 100% true–pipeline compressor stations do emit some air pollution, depending on how they are powered (diesel engines). But at the end of the day, pipelines pollute the air far less than other forms of transportation, like trucks and trains. How does CAC even have “standing” to bring such a lawsuit? Of course the fact that CAC is litigating is a tip-off that there is Big Green money behind the effort–and CAC is just a tool being used in a wider collusion (conspiracy?) to stop the pipeline…
Last week the Monroe County, OH Chamber of Commerce and other organizations held an information forum to highlight what’s coming down the pike in the way of drilling and pipeline work for the county. Monroe is one of the leading Utica Shale counties in Ohio. According to Mike Chadsey, director of public relations for the Ohio Oil and Gas Association (OOGA), “Monroe County has been at the heart of the industry coming out of the downturn.” He also had an interesting perspective on the issue of “boom and bust” in the oil and gas business. We’ve written a number of times about the cycles experienced in the o&g industry. Drillers expand like crazing, creating a “boom,” and when too much of oil or gas floods the market and prices crash, a “bust” follows. Chadsey has different terminology. He thinks it is more accurate to call those cycles “ebb and flow” rather than “boom and bust.” We like it! A number of people addressed the forum, including drillers Rice Energy and EdgeMarc. Here’s how Monroe is leading the way out of the downturn…
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.