PA Senate Bill Would Block Municipalities from Banning NatGas Use
A number of municipalities (mainly cities) in states like California, Washington, and Massachusetts have passed local ordinances banning the use of natural gas in new or refurbished construction. That is, they’ve become energy bigots, institutionalizing discrimination against forms of energy they irrationally hate. Prejudice and discrimination (hatred) are always ugly, whatever form they take, whether against other humans or against energy sources. Some states have passed new laws to prohibit local municipalities from engaging in energy discrimination and natural gas bans. Pennsylvania is the latest to consider such protection.
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It honestly is one of the most bizarre things we’ve ever seen. The largest publicly-owned natural gas utility in the country, Philadelphia Gas Works, is actually looking at and considering the best ways it can kill itself. The implications are many. First and foremost it’s completely racist, as ending the sale of natural gas so will skyrocket the utility bills of its 500,000 customers, who are primarily people of color (44% African American, 14% Latino, 7% Asian = 65% in total). There is no way a majority of Philly residents can afford to wholesale replace their stoves and furnaces at a cost of tens of thousands of dollars. Yet there’s no mention of racism in reporting on this bizarre issue.
The Massachusetts Municipal Wholesale Electric Company (MMWEC) has paused plans (30 days minimum) to build a much-needed natural gas “peaker” power plant in Peabody, MA. Why? “To address concerns raised by local residents and advocacy groups.” In other words, a small number of crazies are out in force, bullying a tiny power plant that will only operate during peak demand–somewhere around 10 days out of the whole year!
Ellen Wald is a senior fellow at the Atlantic Council’s Global Energy Center, and president of Transversal Consulting, a global energy and geopolitics consultancy. She is the author of “Saudi, Inc.,” a history of Aramco and how the Saudi royal family controls this multitrillion-dollar enterprise. Ellen is one of our favorite Forbes authors. She recently published a fantastic editorial in The Hill (rag targeting DC swamp dwellers). Wald writes that President Biden’s plan that commits the U.S. to reduce its greenhouse gas (GHG) emissions over the next eight years to about 50 percent of what they were in 2005 is “impossible, unrealistic and insufficient.”
MARCELLUS/UTICA REGION: Antero can’t skip trial in W.Va. royalty owners’ payment suit; Ohio House passes bill blocking cities from banning natural gas; OTHER U.S. REGIONS: Tellurian to finish commercialization of Driftwood LNG first phase in few weeks; Texas is fighting back against big businesses that threaten oil, gas jobs; NATIONAL: EIA forecasts less natural gas-fired electricity generation this summer; Pipeline operator Energy Transfer mulls chemicals acquisition.
Once again the Pennsylvania Dept. of Environmental Protection (DEP) is falling down on the job. For years we’ve covered the news that DEP delays in issuing simple permits for erosion and sediment control are taking far longer–months longer–than they should. A Chapter 102 Erosion and Sedimentation permit is supposed to take 14 days to review and issue. In the Southwest DEP office, it’s taking an average of five months! Enough is enough. It’s time to pass legislation (one of three bills) now working its way through the PA House and Senate that allows private, third-party engineers to review and approve permits since the DEP (under Sec. Pat McDonnell) is incapable of doing its job.
Back in 2018 MDN analyzed the economic impact from just one driller (Cabot Oil & Gas) in one county (Susquehanna County, PA) and discovered Cabot had put $1.5 billion into the pockets of private landowners through signing bonuses and royalties, and had spent another $3.5 billion on drilling (over $5 billion total spent) over a 10-year period–all in Susquehanna County (see 
ECA Marcellus Trust I, traded over-the-counter on the pink sheets, canceled distributions (dividends) to investors for the first three quarters of 2020 due to the pandemic and the crash in oil and gas prices. The company restarted paying dividends in 4Q20–a grand total of 9/10ths of one penny per unit (see 
All three M-U states received permits to drill new shale wells last week. Pennsylvania received a big 18 new permits (after receiving no new permits the previous week). More than half of those 18 permits were for wells on two pads in southwestern PA. Ohio received 7 new permits last week all in one county (Jefferson), split between Encino Energy and Ascent Resources. And West Virginia received 10 new permits with 7 of them for a single pad in Lewis County.
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 
Nuverra Environmental Solutions (formerly Heckmann) is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. We keep an eye on its performance as an indicator of whether there is more or less drilling happening in the M-U. For over a year, it’s been less. In 2020 Nuverra’s revenue sank by 34% and the rig count that it tracks fell by 27% (see 
Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil, and produced water gathering (pipeline) systems in several unconventional shale plays, including the Marcellus and Utica. Last week Summit issued its first-quarter 2021 update. The company’s Utica Shale segment continued to be the star performer.