PA Drilling Permit Requests Way Down After Huge Fee Increase
Leftists, like Pennsylvania Gov. Tom Wolf, always have to learn lessons the hard way. In August, Wolf’s Dept. of Environmental Protection (DEP) finalized and put into effect a massive increase in the permit fee to drill new shale wells, going from $5,000 per well to $12,500 (see Permit Fee to Drill PA Shale Well Officially Went Up 250% on Aug 1). The fee was based on the assumption the state would continue to see 2,000 new permit applications per year. From August to November the state received (drum roll please)…202 new permit requests. A total BUST.
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Two weeks ago MDN reported that Enbridge, builder of the Weymouth, Massachusetts compressor station, said the compressor would come online Dec. 4 (see 
Anti-fossil fuelers have a new favorite lie to tell: Any kind of power plant or pipeline that uses natural gas is racist. It’s a sick and twisted lie, but that’s the line they now use. For example, the Virginia Air Pollution Control Board recently approved a permit for the construction of a new 17-megawatt natural gas power plant to power the Norfolk Naval Shipyard in Portsmouth, Virginia. Environuts are hollering it’s racist.
In Pennsylvania, there are two permits required by the Dept. of Environmental Protection (DEP) for nearly every shale well drilling project: A Chapter 102 (erosion and sediment control) and a Chapter 105 (water obstructions and encroachments). The DEP has proposed and is seeking comments on wide-ranging amendments to its Chapter 105 regulations.
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In March 2019 MDN told you about Kinder Morgan’s Natural Gas Pipeline Company of America LLC (NGPL) project that carries Marcellus/Utica gas from the Midwest all the way to the Gulf Coast to feed just about any of the existing or under construction LNG export plants in the region (see 
The State of Connecticut’s “Siting Council” changed its mind in July 2019 and approved NTE Energy’s proposed project to build a 650-megawatt natural gas-fired electric plant in Killingly, after initially rejecting it (see 
Last week Pennsylvania issued 21 new shale well drilling permits scattered across both northeast and southwest PA. Ohio issued 5 new shale well permits, all of them to the same company and the same well pad. West Virginia issued 3 new shale well permits, all in different counties.
By now it’s a cliche to say that 2020 has been an exceptional year–and not in a good way. For the first time in our memory of writing MDN, we witnessed widespread curtailments or “shut-ins” of wells in the Marcellus/Utica during 2020. That is, drillers voluntarily turned the values off and flowed less gas in a bid to (a) not sell the gas at prices that don’t return a profit, and (b) drive up the price of gas (see