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    Rex Energy Settled Butler County Water Lawsuits for $159K

    Beginning in 2012, MDN reported on the story of a community in western Pennsylvania (in Butler County) whose residents said that nearby drilling by Rex Energy led to contamination of their water wells (see PA Residents Weary of Fight with Rex over Water Contamination and Rex Energy Water Contamination Case Shifts Focus to Water Pipeline). Several of the families sued Rex. The PA Dept. of Environmental Protection, after an extensive investigation, said that Rex’s drilling did not cause the situation. Apparently water quality in the area was never the greatest to begin with. Rex had built a water line in the area to supply water for fracking and had expected to turn over control/ownership of that line in 2013. That water line could be used to supply fresh water to the affected homes. The debate has been: Who will pay to hook up the homes and to maintain the pipes and infrastructure required? Since Rex, according to the DEP, is not to blame for the poor water quality in the area, the company understandably doesn’t want to pay big bucks to connect and maintain the line to residences in the area. As far as we can tell, the water line never got hooked up. However, there has been a resolution of the situation, of sorts. What had been sealed court documents (unsealed because of Rex’s bankruptcy proceedings) show that in April of this year Rex settled with the suing families, paying them between $16,250 and $27,125 each–a cumulative $159,000. Rex maintains the settlement is not an indication of guilt…
    Read More “Rex Energy Settled Butler County Water Lawsuits for $159K”

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    Big Green Pressures Gov. Wolf to Expand Onerous Methane Regs

    This one was easy to predict, because it follows a tried-and-true pattern used by leftists for decades. PA Gov. Wolf’s Administration has been fiddling with proposed regulations to cut down on fugitive methane emissions from drilling and pipelines for years. The regulations are known as General Permit 5 (GP-5) and General Permit 5A (GP-5A). GP-5 applies to pipelines and compressor stations, while GP-5A applies to well pads and drilling. In June, the PA Dept. of Environmental Protection, author of the revised regs, floated its final final final final version of the regs (see PA DEP Releasing Onerous New GP-5 & 5A Methane Regs June 8). The new regs will go into effect in August. But here’s the thing. These onerous regulations apply only to *new* and not *existing* sources of methane emissions. Now that the revised regs are about to go into effect for new sources, right on cue Big Green groups are pressuring Wolf to apply them to existing sources too. That was, of course, the intention all along–to hamstring (and shut down) the Marcellus industry by saddling it with insanely high costs to comply with regulations that won’t do a thing to “save the planet” from methane poisoning. A classic “bait and switch” routine…
    Read More “Big Green Pressures Gov. Wolf to Expand Onerous Methane Regs”

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    Ulster County Executive Opposes Tiny 20 MW Gas-Fired Plant

    Another case of irrational fossil fuel hatred has cropped up in (surprise!) New York State, in Ulster County (Hudson Valley area). This time the hater is Democrat County Executive Michael Hein. He doesn’t want a teeny tiny 20 megawatt gas-fired electric generating plant because he’d rather have thousands of acres plastered with solar panels and/or windmills–to produce the same drop of electricity this small gas-fired plant would produce. We have to wonder: Why is no one calling for psychological tests of these people? They are literally insane! Pathological conditions. Hein is fine with solar panels and windmills junking up the landscape, but not with a single tiny power plant that nobody would even see. Why? Because it doesn’t have the word “renewable” in the title. And because it uses an evil, vile, nasty “fossil fuel” called natural gas to power it. The plant, proposed by GlidePath, is a “peaker.” It’s a small electric generating plant (powered by natural gas) that doesn’t even run most of the time! It only comes online during “peak” electric demand periods–times when the grid needs some extra juice. It’s used to avoid blackouts, like the one happening right now in Los Angeles. But perhaps Hein and his buddy Andy Cuomo actually *want* New Yorkers to experience prolonged blackouts? GlidePath has responded, strongly, to the blithering idiot Hein, to set the record straight and correct Hein’s lies. Prepare to enter through the Looking Glass…
    Read More “Ulster County Executive Opposes Tiny 20 MW Gas-Fired Plant”

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    Shell Cracker to the Rescue – Saving the Erie, PA Plastics Industry

    The benefits of the mighty Shell ethane cracker now under construction in Beaver County, PA just keep multiplying. In April MDN brought you news that Penn State Behrend (in Erie County) had been tapped by the PA Dept. of Community and Economic Development (DCED) to be the “lead partner” with a $250,000 grant for developing business and market opportunities for the state related to the cracker (see Penn State to Help Create New Biz Opportunities from Shell Cracker). Erie County, where Behrend is located, is certainly not next door to the cracker. It’s two hours away! There are several other Penn State campuses closer to the cracker. So why was Behrend selected? In a word, plastics. “The strength of Erie’s plastics industry and the success of Penn State Behrend’s School of Engineering, which offers one of only six accredited U.S. plastics undergraduate programs, makes Erie of particular interest to DCED.” A new article says that the cracker will not only preserve the 4,300 plastics-related jobs in and around Erie, there’s reason to believe the plastics industry in Erie will “grow larger and stronger” because of the two-hours-away cracker. Again we ask the question, Why? Answer: Because buying plastics pellets from the Shell cracker two hours away is a whole lot cheaper (due to shipping costs) than buying plastics pellets from the Gulf Coast, as happens now. One would be justified in saying, Shell cracker to the rescue!…
    Read More “Shell Cracker to the Rescue – Saving the Erie, PA Plastics Industry”

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    Want a Great Job in the M-U Industry? Take a FREE Pipeline Class

    The Gas Technology Institute (GTI) continues to offer its popular 100% free training program for those interested in a career building pipelines in the Marcellus/Utica region. Starting salaries often exceed $40,000 per year, and a six-figure income is attainable for employees with time and experience. Hey, where do we sign up! Get this: Companies supporting the GTI program have told GTI they anticipate hiring 1,100+ workers over the next two years. And that comes from an informal survey of just 11 (of the many) companies working and hiring in the region. There’s no excuse. If you want a high-paying job, get the 4-week training and get yourself to work. Because of ongoing construction programs within the utility and pipeline industry, and because of aging workforce retirements, the M-U pipeline industry has an acute need for reliable gas pipeline workers. Below are details of how to enroll for FREE in this valuable training course–a course worth $3,500…
    Read More “Want a Great Job in the M-U Industry? Take a FREE Pipeline Class”

  • Energy Stories of Interest: Wed, Jul 11, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA rig count drops; still no power for 1,900 LA residents following heat wave; EIA revises Henry Hub price forecast; new futures contract coming pegged to Sabine Pass LNG; Trump’s pick for Supreme Court has ruled on a number of cases affecting M-U; China a key destination for increasing U.S. energy exports; new EPA boss same as old; natgas drillers are “fighting for their lives”; and more!
    Read More “Energy Stories of Interest: Wed, Jul 11, 2018”

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    Activist Investor Pressures Range to Change Board, Mgmt Structure

    What constitutes an “activist investor” and what constitutes a “corporate raider?” Depends on whom you ask. We address the semantics issue below in more detail. The reason we raise it is because of some big, breaking news: Activist investor SailingStone Capital Partners is forcing Range Resources to do some things Range may not prefer to do. Nearly two years ago, in August 2016, MDN told you that investment firm SailingStone Capital had purchased 11% of Range Resources stock (see SailingStone Capital Buys 11% of Range Stock, Gets Board Seat). They got a board seat out of their investment, and the right to nudge Range in a certain direction, to some degree. Although we were suspicious, at the time it appeared SailingStone was more of a partner assisting Range rather than what we call a corporate raider. SailingStone now owns 17% of Range’s outstanding shares, and they are throwing their weight around. In an announcement made yesterday, we learn that SailingStone has pressured Range into granting them two more seats on the board–for a total of three (out of ten). Is it fair that SailingStone controls 30% of the board but only owns 17% of the company? SailingStone has also forced Range CEO Jeff Ventura to relinquish his title (and power) as Chairman of the Board, appointing a new “independent” Chairman. SailingStone is also forcing Range to hire a new outsider as executive VP, to “supplement and strengthen the management team.” Is SailingStone “helping” Range make changes that Range truly needs to make to benefit shareholders? Or is there something more nefarious going on?…
    Read More “Activist Investor Pressures Range to Change Board, Mgmt Structure”

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    Millennium Lateral Pipe to NY Gas-Fired Elec Plant Begins Service

    This is a red-letter day indeed! We have waited so long for this day to arrive. Andrew Cuomo (ignominious governor of NY) has lost his battle to stop a short, 7.8 mile pipeline, a lateral/offshoot of the main Millennial Pipeline, to flow Marcellus gas to a newly completed gas-fired electric generating plant in Wawayanda (Orange County), NY. Yesterday the Federal Energy Regulatory Commission (FERC) granted permission for Millennium’s Valley Lateral pipeline to begin operation. As we previously reported, once the gas is flowing to the Competitive Power Ventures (CPV) Valley Energy Center, the plant itself will begin operation (see Orange County, NY Electric Plant to Start Up in June). We’re a little delayed. It’s not June, as originally forecast, but hey, early July is A.O.K. As you read this, gas is flowing through the Valley Lateral to the CPV plant. Following yesterday’s announcement, CPV said it will begin final testing of the plant this week, and the plant will go operational in August. Woo hoo!…
    Read More “Millennium Lateral Pipe to NY Gas-Fired Elec Plant Begins Service”

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    Southwestern Appeals “Briggs” Trespass Case to PA Supreme Court

    Southwestern Energy has taken the next step of appealing the “Briggs” trespass case to the Pennsylvania Supreme Court–a case of tremendous importance. In April, MDN brought you the news that Pennsylvania Superior Court had handed down a decision (known as the “Briggs” case) that has the power to greatly restrict, perhaps even stop, Marcellus drilling in PA (see PA Superior Court Overturns “Rule of Capture” for Marcellus Well and PA “Rule of Capture” Case has Power to Limit Marcellus Drilling). The issue, in brief, is that the Superior Court decision disallows using an age-old principle called the “rule of capture” when it comes to shale drilling and fracking. It opens the door to a myriad of frivolous lawsuits claiming that a fracture, a crack created during fracking, is draining gas from a neighbor’s property without justly compensating the neighbor for the gas. Southwestern successfully argued in a lower court that the odd crack here and there that may slip under a neighbor’s property is permissible. The landowner appealed to Superior Court and three judges heard the case. Two of the three overturned the lower court and sided with the landowner. Southwestern, following the decision, petitioned the Superior Court to have all of the sitting justices (called en banc) hear the case. Sadly, in June the Superiors proved they aren’t so superior after all, declining to rehear the case (see PA Superior Court Rejects Southwestern “Briggs” Trespass Appeal). Southwestern promised to appeal this critically important case to the PA Supreme Court, and yesterday they did just that. We have a comment from Southwestern below, along with a copy of the brief they filed, and our own thoughts on where this may go after the Supreme Court…
    Read More “Southwestern Appeals “Briggs” Trespass Case to PA Supreme Court”

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    CELDF Finds New Group of Suckers in Columbus for Utica Frack Ban

    The spirit of P.T. Barnum is alive and well in Columbus, OH where enough suckers have been tricked by the odious anti-fracking group Community Environmental Legal Defense Fund (CELDF) to sign a petition to get a misnamed “Community Bill of Rights” onto the ballot this November. It’s more of the same from the PA-based CELDF. The Bill of Rights is a document in direct contravention to the Ohio Constitution, which reserves the right to regulate oil and gas drilling to the state itself–not to local municipalities. Each time the CELDF has tried this nonsense in other locations it has failed. The CELDF ballot initiative in Youngstown has now been voted down by voters seven times (see Ohio Antis Suffer Big Election Defeats in Youngstown, Statewide). In those locations where CELDF-backed initiatives have passed, like Highland Township (Elk County, PA) and Grant Twp (Indiana County, PA), the measures were overturned by the courts (see Attorney for Anti Group CELDF Fined $52K for “Bad Faith”). But none of that matters to the SUCKERS in Columbus who have signed the latest CELDF petition…
    Read More “CELDF Finds New Group of Suckers in Columbus for Utica Frack Ban”

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    OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants

    Enough is enough. It’s time to name names and put an end to blocking new gas-fired electric plants planned in West Virginia. WV has a long, proud history as a coal producer. According to West Virginia Coal Association President Bill Raney, some 95% of the electricity produced and used in the Mountain State comes from coal-fired plants. However, natural gas burns cleaner than coal, and frankly, natgas is now cheaper than coal. Yet WV still has not permitted or allowed a single new gas-fired plant to be constructed. Last year then-WV Sec. of Commerce Woody Thrasher observed that Ohio has built 19 new gas-fired power plants, and Pennsylvania has built 22 new gas-fired power plants, while WV has built NONE. Why not? Because of Robert Murray, CEO and founder of Murray Energy, one of the largest independent coal mine operators in the U.S. Bob Murray is using a front organization called Ohio Valley Jobs Alliance (OVJA) to file a blizzard of frivolous lawsuits that have kept all new gas-fired plant projects from being built in WV. Drew Dorn, Director of ESC Harrison County Power and President of Energy Solutions Consortium (the company that has filed to build several new gas-fired plants in WV), points out Murray’s hypocrisy on the shale issue, by saying: “Murray Energy is trying to kill thousands of jobs on these projects. Murray Energy has made huge amounts of money off of natural gas in rights-of-way and other means, but when it comes to West Virginia natural gas making electricity, the company is trying to achieve through the courts what it could not through the marketplace.” The gloves are now off and it’s time to fight back–to get gas-fired plants built in WV. It’s time to “out” Bob Murray for the obstructionist he has become, and to expose him for the economic damage he’s causing…
    Read More “OVJA Exposed as Front for Murray Energy Blocking Gas-Fired Plants”

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    PA DEP Appoints New Director of So-Called “Environmental Justice”

    Allison Acevedo

    The Pennsylvania Dept. of Environmental Protection (DEP) has a department within its department called Environmental Justice. In March 2017, then-Acting (now full) Secretary of the DEP Patrick McDonnell went on an environmental justice “listening tour” (see PA DEP Conducting “Listening Tour” for “Environmental Justice”). So what is so-called environmental justice? As near as we can tell, “environmental justice” means asking poor people or minorities (African Americans and Hispanics) if they feel like they’ve been abused by the oil and gas industry in any way–and if they have a beef, the DEP will “do” something about it. The reason we bring all this up is because the DEP has just appointed a new Director of Environmental Justice–Allison Acevedo. She’s a former tax and labor attorney from Philadelphia. We hope her appointment is largely ceremonial–a do-nothing job. We fear the opposite…
    Read More “PA DEP Appoints New Director of So-Called “Environmental Justice””

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    Pipeline Companies Launch “Charm Offensive” to Woo Support

    We spotted an article last week about how pipeline companies are changing the way they do business, in order to stay in business. The article refers to a “charm offensive” pipeline companies are now engaged in, in an attempt to get pipeline projects approved. Several of the examples used come from the Marcellus/Utica region, including Kinder Morgan’s UTOPIA pipeline in Ohio. What is the “charm offensive?” We’d sum it up this way: better communication earlier in the process with landowners, and spreading more cash around in the communities where the pipeline will travel. The companies are also getting better at organizing supporters, by building contact databases and encouraging letter writing and email campaigns, and calls to regulators. It’s been slow in coming, but finally our side is taking a few cues from the other side…
    Read More “Pipeline Companies Launch “Charm Offensive” to Woo Support”

  • Energy Stories of Interest: Tue, Jul 10, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Five Utica permits in OH last week; ME2 drills under Raystown Lake; shale impact tax money funds opioid prevention program for Little Leaguers; Texas drillers cut down on light pollution to help observatory; 100 more rigs coming this year; why natgas hasn’t (and won’t) dethrone gasoline; acting EPA chief plans to stick with Trump’s priorities; fracking key to wealth creation in Quebec; can the UK government solve the shale challenge?; and more!
    Read More “Energy Stories of Interest: Tue, Jul 10, 2018”

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    Surprise! NJ Issues Permits for Meadowlands Marcellus-Fired Plant

    MDN reported in April that a subsidiary of Japanese conglomerate Mitsubishi wants to build a huge, new $1.5 billion natural gas-fired electric generating plant in the Meadowlands (New Jersey), just outside of New York City (see Marcellus Electric Plant Proposed for Meadowlands to Power NYC). The North Bergen Liberty Generating Project, at 1,200 megawatts, will help replace some of the electricity lost when the Indian Point Nuclear plant located in New York along the Hudson River closes down in 2021. We suspect that since the mighty Transco pipeline, which flows mostly Marcellus molecules in the northeast, will feed the Meadowlands project, this plant will become an important new market for PA Marcellus production. The town where the plant will be located, North Bergen, is jazzed about the plant (see NJ Town Ready to Approve Meadowlands Marcellus-Fired Power Plant). Of course the plant is opposed by radicals in the nutty Sierra Club and other Big Green groups who despise all fossil fuels and demand that you and I end our use of fossil fuels to make them feel better about themselves. The Sierra Clubbers, namely Jeff Tittel, thought he could tell NJ’s newly elected leftist Democrat Gov. Phil Murphy to block the project. After all, they’re best buds. Tittel strongly supported Murphy’s campaign. But a funny thing happened on the way to the forum. In a surprise move, the Murphy Administration has just approved the first in a series of required permits, indicating ole Phil is in favor of the project after all and wants it built. Which has Jeff Tittel hopping mad…
    Read More “Surprise! NJ Issues Permits for Meadowlands Marcellus-Fired Plant”

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    Va. Supreme Court Upholds Pipeline Survey Law for 3rd Time

    In 2016 the Virginia Supreme Court accepted a case from an 83-year old granny who didn’t want surveyors working for Dominion’s Atlantic Coast Pipeline to enter her property to conduct a survey for a possible pipeline route (see A Supreme Court to Hear Atlantic Coast Pipe Survey Case). A 2004 Virginia law specifically allows surveyors to enter a property WITHOUT landowner permission, as long as the surveyors provide ample, advance notice of when they are coming. Granny’s case attempted to challenge and end that law. She failed. Last July the Supremes ruled against her (see Va. Supreme Court Rules Against Granny in Pipeline Survey Case). However, Dominion did get a slap on the wrist. The justices said notifications sent for when surveyors will arrive can no longer say the surveyors will arrive “on or after,” because “after” can mean years later. Instead, Dominion will have to give several potential, specific dates when surveyors will visit a property. Fair enough. Except yet another group of landowners sued attempting to overturn the same law–now for a third time. And this third case also ended up in state Supreme Court. Last Thursday the Supremes ruled 6-1 to uphold the existing law that grants pipelines permission to enter property with advance notice. Third time’s a charm?…
    Read More “Va. Supreme Court Upholds Pipeline Survey Law for 3rd Time”