Partial Victory for PA Drillers re DEP Chapter 78a Drilling Regs
The Pennsylvania Commonwealth Court has handed PA drillers a partial victory in their quest to block onerous new drilling regulations, part of something called Chapter 78a. In October 2016, after five years in the making, PA adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf Administration. Wolf’s people mangled the regulations under the Dept. of Environmental Protection (DEP) Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). In December 2016, the DEP escalated the case by asking the PA Supreme Court to undo the block on those regulations imposed by the lower Commonwealth Court. Last October the Supremes heard oral arguments in the case, and in June of this year the Supremes ruled to not undo the block on DEP’s onerous regs–but instead bumped the case back down to Commonwealth Court to let the matter play out there (see PA Supreme Court Upholds Block on DEP Chapter 78a Drilling Regs). Last week Commonwealth Court struck down provisions in Chapter 78a (f) and (g) defining “common areas of a school’s property and playgrounds,” and “species of special concern” as public resources under Act 13. While we didn’t get 100% of what we wanted, we got maybe 95%–at least for the two provisions in sections (f) and (g). Other parts of the lawsuit are still under consideration by Commonwealth Court. Here’s the deets on this important victory for Marcellus drillers…
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Sometimes you spot an innocent, off-the-cuff remark that’s not really part of the intended story–but has huge meaning. Such was the case when we spotted a story quoting Ohio House of Representatives member Andy Thompson (Republican, 95th District covering Carroll, Harrison and Noble counties, and portions of Washington and Belmont counties). Thompson, who (to his credit) is not running for reelection after four terms [NOTE: a sharp MDN reader emailed to say Mr. Thompson was term-limited out and could not run again], gave a speech at the Ohio Mid-Eastern Governments Association last week in St. Clairsville. In his remarks, Thompson talked about the work of Shale Crescent USA, an economic development organization formed a few years ago to encourage business growth in the Ohio Valley based on low natural gas prices that allow manufacturers to operate more efficiently–with easy access to half the population of the United States and Canada. Although Thompson’s focus was not on the PTT Global Chemical ethane cracker project potentially planned for Belmont County, he had some VERY interesting remarks about that project and others like it…
Here’s some dots that we’ve not seen anyone else connect. There are two competing pipeline projects that generally run along the same route to shuttle Marcellus/Utica gas to the southeastern U.S. One project is EQT Midstream’s Mountain Valley Pipeline (MVP), which runs 303 miles from West Virginia into southern Virginia. MVP is facing a court case that’s idled three-fourths of the project, leading to a layoff of “thousands” of workers (see 
EQT signed a lease with a landowner in Washington County, PA back in 2007 that allows the company to drill and/or develop surface property–building things like a freshwater (NOT wastewater) pond that can be used for nearby drilling. The landowner’s daughter, who either doesn’t understand drilling (or more likely does understand but doesn’t like it) claims there is an unmarked, single grave somewhere on the property (presumed to be an Indian), using that claim to stop EQT’s work on building the water pond. EQT is patiently playing along, waiting for–even paying for and assisting with–an archaeological dig to see if the grave and other Indian remains can be located. So far, nothing has been unearthed–except for a lot of hot air…
We’ve written, forever, about the quest by Pennsylvania’s teacher’s unions (most of them in the Philadelphia area) who want to raid the coffers of Marcellus drillers via a confiscatory severance tax slapped on top of an existing impact tax slapped on top of corporate income taxes. You can never have too many taxes in education-land. That’s the only way they get paid. Neighboring states like Ohio and West Virginia already have a severance tax. It’s hard comparing apples to apples, but essentially PA drillers pay a bit more than OH drillers, but a whole lot less than WV drillers. The severance tax in OH is 1.25%. In WV the severance tax is a whopping 5%. And yet, amazingly, the teacher’s unions in WV are now clamoring to boost the severance tax even more! They want to boost the tax by 2.5% to 7.5%–which would kill the Marcellus/Utica industry in the state. It would be a death sentence. The West Virginia Oil and Natural Gas Association (WVONGA) is on the case, pushing back against this lunacy…
One more piece of the Obama “legacy”–the onerous, wildly unpopular Clean Power Plan (CPP) that assassinates coal powered energy and mortally wounds natural gas in favor of so-called renewable sources of energy–is now history. Well, it will be history after a few more years of legal wrangling. Let’s say the CPP is well on its way to the garbage can of history, where it belongs. The CPP (see 
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: PA Auditor General DePasquale resurrects old claims of DEP problems; Carnival Cruise to park LNG liner at Canaveral; the next big bet in fracking – water; US natgas supplies & price, again; FERC outsources to help with LNG inspections; US natgas exports go up with new pipes into Mexico; Venezuela to flow gas to Trinidad for liquefaction; Aramco IPO halted; why worry about Russia’s Nord Stream 2; natgas prices in Europe surge; and more!
MDN editor Jim Willis is taking a rare few days off this week, beginning Wednesday and running through Friday. No new MDN stories will be published on those days.
MDN brought you the exciting news that last week a New York “Supreme Court” judge (Supreme Court in NY is a lower court, one step up from county court) overruled a last-minute dirty trick by the Dept. of Environmental Conservation (DEC) to block a Marcellus-fired electric plant from starting operations (see 
It dawned on us, reading yet another story about how EQT/Mountain Valley Pipeline (MVP) has laid off around half of the MVP workforce, perhaps up to 3,000 people (see 
Radical environmentalists who want to “keep it in the ground”–the “it” being fossil fuels–are emboldened by the actions of New York Gov. Andrew Cuomo. Cuomo, you may recall, effectively blocked and stopped in its tracks the federally-approved Constitution Pipeline, in April 2016 (see 
“Hey Jim, we’re tired of reading your rants about antis. Get off it, will ya? Focus on the good news of where drilling and pipeline work is actually happening.” We sometimes get those kinds of emails. What those folks don’t seem to realize is that we are in a fight to the (economic) death with people who hold a dangerous philosophy. They are people who are, in part, funded by Russia (as you’ll see below), working against America’s best interests. They are, in a word, anti-American. And we’re outing them for who they really are. Exposing them to the light of day. Yes, it is important to beat the drum, frequently, to bring to your attention just how the fight is going and who’s engaged in this fight–so you know why it takes so long to drill a well or build a pipeline. Why landowners don’t see more drilling sooner. Why natural gas and NGLs and oil can’t get to market, or get to markets that pay more. There is a reason, and it’s because of groups like the NRDC and Sierra Club…
Last week MDN told you about a George H.W. Bush district court judge in South Carolina who reversed EPA Administrator Scott Pruitt’s order ending the tragedy of Obama’s Waters of the United States (WOTUS) rule (see