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    Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin

    Well they did it. Yesterday at a regularly scheduled meeting of the Delaware River Basin Commission (DRBC), representatives for the five voting members voted to begin the process of formalizing a permanent ban on fracking in the Delaware River Basin. It wasn’t unexpected, but it was hotly contested–by both sides in the debate. As we’ve previously chronicled, the DRBC is composed of five voting members: the governors of Pennsylvania, New York, Delaware, New Jersey, along with the U.S. Army Corps of Engineers. The governors all sent people to represent them at the meeting, with clear instructions. The three Democrat governors–Tom Wolf (PA), Andrew Cuomo (NY), and John Carney (DE) all voted in favor of a resolution to take the next step in the process of a permanent ban, voting to adopt a draft resolution MDN previously shared (see DRBC Votes Tomorrow on Permanent Frack Ban Resolution). Gov. Chris Christie’s (NJ) rep abstained from the vote, and the Army Corps, which answers to the White House, voted NO. Steven Tambini, DRBC’s executive director, has clearly lost control of the organization. Or perhaps he never had control to begin with. Tambini urged critics to “withhold judgment” until they see the regulations that Big Green groups cook up. Big Green groups like THE Delaware Riverkeeper (aka Maya van Rossum) should be elated–but they still had sourpusses on. They didn’t like language in the resolution that would allow frack wastewater to be hauled/disposed of inside their precious Delaware River Basin playground. Meanwhile, landowners in Wayne and Pike counties in PA are getting the royal shaft–they will never be able to lease their land for drilling. In 2015 PA Gov. Wolf offered to help those landowners, in return for a political quid pro quo–support his severance tax plan (see PA Gov Wolf Offered Deal in ’15 to Open Dela. River Basin Drilling). The landowners did not support Wolf’s loony severance tax plan, so now it’s payback. Wolf is going to strip their property rights away…
    Read More “Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin”

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    PA House Holds the Line – Passes Budget with No Severance Tax

    Three cheers for Pennsylvania House Republicans. Hip hip, hooray! House Republicans did the near impossible–they held the line against a cockamamie plan to raise all sorts of taxes, including slapping a severance tax on the Marcellus gas industry (on top of the existing impact tax). You may recall our story about a group of hardworking Republican House members who, during the recent recess, did a masterful forensic accounting job of locating existing money sitting idle in a variety of programs and departments–money that can used to plug a deficit in the budget this year (see PA House Introduces Balanced Budget with NO Severance Tax). House members pulled a rabbit out of the hat by finding $2.4 billion in money laying around, unused in various accounts, that they plan to reallocate to the state budget. Yesterday the House voted. As always, battle plans never survive first contact with the enemy. The final version of the House budget plan passed yesterday includes a $1 billion loan from money the state is set to get in the future from the long-ago tobacco company settlement, an expansion of casino-style gambling, and “hundreds of millions” from the money House members found laying around, unused. The key is that there are no new taxes in the House budget plan. No severance tax. No gross receipts tax (on telephone, electricity and natural gas). Read my lips: No New Taxes. They did it! And they are to be applauded for it. Now the plan goes to the Senate where its future is less than certain. Gov. Wolf immediately blasted the House plan because it doesn’t include any new taxes…
    Read More “PA House Holds the Line – Passes Budget with No Severance Tax”

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    Senators Try to Remove Sev. Tax Stain by Chiding Wolf re DRB Vote

    Following yesterday’s vote by the Delaware River Basin Commission (DRBC) to take the first step in a permanent ban on fracking in the Delaware River Basin (DRB), reaction from those who support drilling was swift. The American Petroleum Institute issued a statement saying, among other things, that the DRBC’s intention to permanently ban fracking in the DRB is “bad public policy.” More than a few Pennsylvania legislators took issue with PA Gov. Wolf’s vote to endorse a permanent frack ban. Three ranking State Senators–Senate President Pro Tempore Joe Scarnati, Senate Majority Leader Jake Corman, and Senate Environmental Resources and Energy Chair Gene Yaw, ripped into Wolf with a joint press release yesterday, saying they “strongly objected” to Wolf’s vote. The three said a permanent ban on natural gas drilling in the Delaware River Basin is “arbitrary, short-sighted and a blow to economic development, job-creation and landowner’s rights.” We appreciate their support. However, those same three Senators recently sold out the gas industry when they voted for a severance tax. They were part of the high-tax cabal that made the job of the House that much harder (thank God the House passed a no-severance-tax budget yesterday, see today’s companion story). While we appreciate the Senators’ support on the DRB frack ban issue, their bloviating against Wolf on the frack ban vote doesn’t remove the stain of their betrayal of the gas industry in voting for the severance tax. All three Senators need to go at the next primary…
    Read More “Senators Try to Remove Sev. Tax Stain by Chiding Wolf re DRB Vote”

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    Rover Pipeline Still Battling Ohio EPA, Asks FERC to Lift HDD Ban

    Rover project map – click for larger version

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada–starting flowing natural gas through a portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Since then, Phase 1A of the pipeline has steadily increased its throughput and now flows over 700 million cubic feet per day (MMcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH. However, it could flow more, if the Federal Energy Regulatory Commission (FERC) would lift its considerable boot off Rover’s neck and let them finish Phase 1B–pipeline work in eastern Ohio to feed more gas to the main part of the pipeline. The problem is that Rover had early missteps, the most serious of which spilled 2 million gallons of non-toxic drilling mud in a swamp near the Tuscarawas River back in April (see Rover Pipeline Accident Spills ~2M Gal. Drilling Mud in OH Swamp). An investigation by the Ohio Environmental Protection Agency (OEPA) found the presence of diesel fuel in the drilling mud, which means the mud wasn’t so non-toxic after all (see OH EPA Says Diesel Fuel Found in Rover 2M Gal Drilling Mud Spill). Rover believes sabotage may have been the cause (see ET Says Accident or Anti Sabotage Caused Diesel in Rover Mud Leaks). Since April, FERC has blocked all new underground HDD work for the Rover project. Rover has asked (begged, pleaded) FERC, several times, for permission to restart the HDD work–at least in a few select locations. In August, FERC issued eight conditions before they would agree to lifting the HDD ban (see FERC Issues Rover 8 Commandments to Restart Horizontal Drilling). Rover says they have met all of those conditions. However, the OEPA says they have not, and is asking FERC to continue blocking HDD activity until they (OEPA) are satisfied. Rover fired off a letter to FERC that says OEPA’s public statements are opposite of their private statements with Rover. In other words, OEPA is lying. Who will FERC listen to?…
    Read More “Rover Pipeline Still Battling Ohio EPA, Asks FERC to Lift HDD Ban”

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    Monroeville, PA Passes Restrictive Seismic Testing Ordinance

    Monroeville, PA (Allegheny County, suburb of Pittsburgh) voted last night to restrict seismic testing within municipal boundaries–a move meant to restrict future shale well drilling in the area by Huntley & Huntley. In a July story, MDN brought you the news that Cougar Land Services, a subcontractor working with Huntley & Huntley, is planning to conduct seismic testing in two rural areas of the municipality, including “small portions” of Monroeville’s northernmost and southernmost tips (see H&H: Seismic Testing Coming to Monroeville, Not to Oakmont). Monroeville Council voted in early August to publish a draft of its new seismic testing ordinance for 30 days of public comment, prelude to a final vote (see Monroeville, PA Close to Passing Restrictive Seismic Testing Ord.). The restrictions are meant to hassle anyone wanting to conduct seismic testing, i.e. Huntley & Huntley. Which is kind of sad, as H&H is headquartered in Monroeville. Kind of like spitting in the company’s face. Last night Monroeville hawked up a huge wad of phlegm and let a big one fly in the face of H&H. Not to worry. If the ordinance “is outside the state parameters,” H&H intends to sue. Just to add insult to injury and let the Marcellus industry know how unwelcome they truly are, the council also voted to put a new ordinance on the agenda that pretty much blocks all Marcellus Shale drilling throughout the municipality…
    Read More “Monroeville, PA Passes Restrictive Seismic Testing Ordinance”

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    Mountaineer NGL Storage Project Delayed Until 2018

    Mountaineer NGL Storage wants to build a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica). As we reported in April, the company need customers to sign up to use the facility–a minimum of 1 million barrels of storage would get it going (see More Clarity on Status of Mountaineer NGL Storage Facility in OH). Mountaineer still needs to build a 3.25 million barrel brine pond, used to pump out the stored NGLs. Mountaineer is waiting for a clearance from the Ohio Dept. of Natural Resources to build the pond, which (in June) we said would likely to take “a few more months.” Strike that. The CEO of the project recently said he now does not expect to get those permits until “first or second quarter of next year.” He hastens to add that’s no problem, because his two biggest potential customers–the Shell ethane cracker in Beaver County, PA and the closer-by PTT Global Chemical cracker in Belmont County, OH, won’t be ready to start using ethane until 2020 at the earliest…
    Read More “Mountaineer NGL Storage Project Delayed Until 2018”

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    Westmoreland Water Authority Expects $3M in Gas Royalties This Yr

    In an incredible story of how Marcellus Shale drilling benefits local communities, the Municipal Authority of Westmoreland County (i.e. the water authority) reports that it expects royalties received from 52 shale wells drilled on authority-owned land will jump another $1 million this year, to a total of over $3 million. The authority is still pushing forward with a three-year rate hike plan that began in 2016–so customers will get a 7% rate hike this year. Even though the authority has all of that extra cash. Why not suspend the rate hike because of the extra royalty money? Because, says an authority official, “The rate hikes were designed to help pay for a $140 million loan finalized last year for capital improvements to the water system that serves more than 120,000 customers in five counties as well as nearly 25,000 sewer customers.” What will the authority do with the extra $1 million they hadn’t planned on receiving? It’s “more money to be reinvested into the system.” Here’s the lowdown on Westmoreland’s windfall from gas royalties, and why royalties are jumping this year…
    Read More “Westmoreland Water Authority Expects $3M in Gas Royalties This Yr”

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    PA AG Criminal Lawsuit Against XTO Energy Dismissed After 4 Yrs

    Four years after then-Pennsylvania Attorney General Kathleen Kane decided to turn an accident into a criminal prosecution against XTO Energy, the final chapter has been written. Anti-drilling Kane attempted to criminalize the accidental spill of a small amount of recycled wastewater by XTO that happened years before she took office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). There was an accidental spill of ~50,000 gallons of frack wastewater at an XTO drill site in 2010 in Lycoming County, PA. XTO remediated the site, digging up affected soil, and paid out a $100,000 settlement in 2013. By the time Kane took office, the matter had been over and done for over two years. But Kane wanted/needed a quick way to make a splash with her hardcore left fringe supporters (payback time for money and volunteers), so she re-opened the case and fantastically filed criminal charges saying XTO showed a pattern of brazen disregard for safety, blah blah blah. In 2013, XTO filed to dismiss the Kane lawsuit (see XTO Energy Files to Have AG Kane’s Lawsuit Dismissed). The federal EPA also got into the act and last year XTO settled a violation of the Clean Streams Law and Solid Waste Management Act. Pricetag? Another $300,000. Now that the company has paid out the nose ($400,000 total), U.S. Middle District Judge Matthew Brann yesterday approved a motion filed by the U.S. attorney’s office to end the case. Finally. After four years…
    Read More “PA AG Criminal Lawsuit Against XTO Energy Dismissed After 4 Yrs”

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    200+ Binghamton-Area Residents Sign Petition Supporting Virtual Pipe

    Who knew there was ANYBODY who supported a virtual pipeline project in Broome County, NY?! As MDN recently reported, a Broome County judge ruled that the Town of Fenton (Binghamton area) 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–called a “virtual pipeline” (see Judge Rules Against Broome Virtual Pipe, NG Advantage to Try Again). The judge’s ruling delays the project for months at least. NG must now resubmit the project for approval by the Fenton Planning Board. Before doing that, NG must first conduct a full environmental impact study and an aquifer study. Even with environmental studies, don’t expect the locals, who appear to have very closed minds, to accept the outcome. Travel around the community where the project is slated to be built and almost every home within a mile has a “NO COMPRESSOR STATION” sign. Read local news coverage of the issue and you come to the conclusion there isn’t a single soul in the county (apart from MDN editor Jim Willis) who supports the project. NG is out to counter that media narrative. NG has just launched a petition to support the project. And guess what? Already over 200 local residents have signed it. Yeah, there’s likely at least that many against it, but the point is this is not a one-sided issue. People in the community are starting to speak up in support of the project. If you live in the general vicinity, here’s how you can sign the petition…
    Read More “200+ Binghamton-Area Residents Sign Petition Supporting Virtual Pipe”

  • Marcellus & Utica Shale Story Links: Thu, Sep 14, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Mountain Valley Pipe sidetracked, but still needed; ODNR issues 16 permits in OH Utica; Delco RINOs push severance tax; Okla. earthquakes blamed on fracking in new lawsuit; Gulf Coast energy hub “too important to fail”; Big Tech enters energy markets; natgas storage on track to be full by end of Nov.; climate kook Michael Mann shrieks at “inhuman cretins” who don’t believe has he does; Europeans approve new natgas security rules; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Sep 14, 2017”

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    OH, WV Landowners Sue Antero re Post-Production Royalty Deductions

    Lawsuits filed against Antero Resources in both Ohio and West Virginia seek class action status. Both lawsuits make similar claims: Namely that Antero has improperly deducted post-production expenses from royalty checks (not allowed under lease terms), and that Antero has avoided, with creative accounting, paying royalties on natural gas liquids (NGLs) produced. The OH lawsuit was first filed in January of this year, followed by a lawsuit filed in WV in May. We have copies of both complaints below, so you can read the language for yourself. In the case of the OH lawsuit, Antero filed a motion to dismiss. The landowners amended the complaint and Antero dropped their motion to dismiss. The OH lawsuit, and as near as we can tell, the WV lawsuit, are both moving forward. Here’s our summary of both lawsuits–the MDN Cliffs Notes version…
    Read More “OH, WV Landowners Sue Antero re Post-Production Royalty Deductions”

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    PA Gov Wolf Offered Deal in ’15 to Open Dela. River Basin Drilling

    Here’s a surprise: Big Green mouthpiece PBS StateImpact Pennsylvania is dishing some dirt on one of their own–PA Gov. Tom Wolf. We’ve been closely following the developing situation with the Delaware River Basin Commission (DRBC) finally coming out of the closet as an extended arm of radical Big Green group Delaware Riverkeeper. The DRBC will vote (today) on beginning the process to permanently ban fracking in the Delaware River Basin (DRB), which will prevent landowners in Wayne and Pike counties (PA) from accessing the bountiful shale gas under their land (see our article yesterday, DRBC Votes Tomorrow on Permanent Frack Ban Resolution). The DRBC is composed of five voting members: the governors of NY, PA, DE, NJ and the U.S. Army Corps of Engineers. A final new regulation that permanently bans fracking would need those five votes. According to an article published yesterday by StateImpact PA, in a 2015 meeting with Wayne County landowners who support fracking, Gov. Wolf offered to work on opening up the DRB for fracking–IF the landowner group in Wayne County would support his push for a severance tax in return. People at the meeting said, “it almost felt like a bribe.” Maybe because it *was* a bribe! A political bribe. Fortunately the landowners from Wayne didn’t take the bait, they did not support his loony tunes severance tax plan. So now it’s payback time, with Wolf signaling he will vote for a permanent ban on fracking…
    Read More “PA Gov Wolf Offered Deal in ’15 to Open Dela. River Basin Drilling”

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    Lawyers ask US Supreme Court to Hear WV EQT Royalty Case

    WV Supreme Court Justice Beth Walker

    In a decision that thrilled drillers, but angered landowners, the West Virginia Supreme Court decided in May to overturn its own previous decision (from last December) and allow driller EQT to deduct post-production expenses from royalty payments (see WV Supreme Court Reverses Itself, Post-Production Deductions OK). Last December MDN reported on the huge WV Supreme Court decision against driller EQT that disallows EQT from deducting post-production expenses from royalty checks, even with signed contracts in place (see WV Supreme Court Rules EQT Can’t Deduct P-P Costs from Royalties). The justices, in their ruling, said that drillers can “not deduct from that (royalty) amount any expenses that have been incurred in gathering, transporting or treating the oil or gas after it has been initially extracted, any sums attributable to a loss or beneficial use of volume beyond that initially measured or any other costs that may be characterized as post-production.” A really big deal. Then in February, with a brand new justice on the bench, the WV Supreme Court agreed to rehear the case after an appeal filed by EQT–a rare and unusual step (see EQT Catches Big Break in WV Supreme Court re Royalty Deductions). Those who won the case say newly elected Supreme Court Justice Elizabeth Walker had conflicts of interest and should not have been allowed to vote to rehear the case in the first place (which she did). On that basis, they tried to avoid the rehearing altogether, but that failed. As it turns out, the lawyers mainly argued over the meaning of three short words: “at the wellhead” (see WV Supreme Court Post-Production Royalty Case Hinges on 3 Words). In the May decision, the justices reversed their earlier decision, voting 4-1 in favor of allowing EQT to deduct “reasonable” post-production expenses. Newly elected Justice Beth Walker, with (according to the other side) conflicts of interest, voted in favor of EQT. On the basis that Walker should not have been part of the process at all, lawyers for the losing landowners have appealed the case all the way to the United States Supreme Court…
    Read More “Lawyers ask US Supreme Court to Hear WV EQT Royalty Case”

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    Shale Crescent’s Ambitious Plan to Bring 100K Jobs to Mid-Ohio Valley

    In June 2016, MDN told you about an economic development group of business and government leaders from Ohio and West Virginia (the Mid-Ohio Valley) called Shale Crescent (see Group Promotes Mid-Ohio Valley for Petrochem: Shale Crescent USA). The group was two years in the making and officially launched in June at a public event in Washington County, OH. The aim of the group is to attract manufacturers–particularly petrochemical manufacturers–to set up shop in the region. It didn’t take long for the fledgling organization to begin having an impact. Within months it was talking to large petchem companies with “household names” about building plants in the Mid-Ohio Valley region to take advantage of cheap Marcellus/Utica Shale gas and NGLs (see Shale Crescent Luring Petchem Companies to Mid-Ohio Valley). Shale Crescent continues to impress. The organization has an ambitious plan to lure 100,000 new jobs to the Mid-Ohio Valley over the next eight years…
    Read More “Shale Crescent’s Ambitious Plan to Bring 100K Jobs to Mid-Ohio Valley”

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    It’s Time to Start Drilling, Fracking & Piping in…New Jersey?!

    Will fracking come to New Jersey? We asked that question back in 2013 (see Will Fracking Come to…New Jersey?!). At the time we pointed out the Marcellus/Utica only marginally touches the border of NJ, but that another rock layer called the Newark Basin underlies most of the state. We cautioned folks not to hold their breath, with good reason. There’s been zero talk about drilling in NJ since that time. However, there’s been plenty of talk about building pipelines to carry PA’s fracked Marcellus gas into the Garden State. What got us to thinking about fracking in NJ was an opinion article published yesterday by TV and radio personality Bill Spadea–a conservative Republican who lives and works in NJ (qualifies him as a missionary, in our book). Spadea makes a strong case that if NJ wants to fix its perpetual budget mess (huge state debts), there is a way–by encouraging (yes) fracking, and off-shore drilling, and more pipelines into and through the state. If NJ takes his advice, it would “Make New Jersey great again”…
    Read More “It’s Time to Start Drilling, Fracking & Piping in…New Jersey?!”

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    MDN’s Prayer for North Carolina Clergy Who Pray Against Pipeline

    We spotted an article that says clergy and lay people from the United Church of Christ in Robeson County, North Carolina will hold a prayer vigil today. A liberal pastor has decided to show up at the state Department of Environmental Quality (DEQ) to pray against approval for Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline (ACP)–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. The DEQ is scheduled to announce a decision about granting the project a necessary permit, at a meeting on Sept. 19th. Which got us to thinking. Perhaps we should pray for the pastor and lay people who will show up to pray today. Here’s our prayer…
    Read More “MDN’s Prayer for North Carolina Clergy Who Pray Against Pipeline”