Monroeville Back from Edge of Insanity, Allows Some Fracking
Common sense has broken out in Monroeville. Either that, or fear of litigation. Either way, Monroeville (Allegheny County, PA) has rolled back an overly-restrictive zoning ordinance meant to hassle Huntley & Huntley’s plans to drill wells in the township–the very same township where H&H has its headquarters. Last October, Monroeville Council passed a temporary ban on oil and gas well drilling everywhere except for those areas marked M-2 industrial zoning–a big change (see Monroeville, PA Hostile to Shale, Bans Drilling in Most Places). Previously, drilling permits were “conditional use” in Monroeville, meaning each permit was evaluated on its own merits, regardless of which zoning district it was located in. By limiting drilling to M-2, Council severely limited drilling in the municipality–but at least drilling was still allowed. Then in January, Monroeville Council advertised their new zoning ordinance to FURTHER RESTRICT any kind of oil and gas activity–not just drilling, but pipelines, compressor plants, etc.–to a 150-acre parcel located next to the city dump (see Monroeville Pushes Ban on NatGas Activity, Incl. Drilling & Plants). It would be, in essence, a total ban on shale drilling activity throughout the township. Two weeks ago Monroeville Council voted (unanimously) to withdraw the proposed new ordinance, which means the zoning ordinance from last October limiting drilling to M-2 remains the law. Still not good, but better than a total ban…
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Earlier this month MDN reported that the Southern Environmental Law Center and Appalachian Mountain Advocates, on behalf of a mishmash of second tier radical groups, filed a “hail Mary” request with the federal Fourth Circuit Court of Appeals to stop construction of Dominion Energy’s Atlantic Coast Pipeline until a lawsuit sitting before the Fourth Circuit questioning the validity of the permits granted for the project is played out (see
The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: FERC denies stay of Mountaineer Xpress, Gulf Xpress; rural OH schools benefit from pipeline tax revenue; Range Resources’ CFO retiring in May; comment period of DRBC frack ban rules ends Friday; LNG in Jacksonville; Chevron’s climate court case kind of like Big Tobacco; gas is the new oil; climate change lawsuit avalanche is coming; Trump to name Energy Dept. official as top aide; Russian LNG heads to India; and more!
Last Friday MDN editor Jim Willis had the pleasure of speaking at the National Association of Royalty Owners (NARO) Pennsylvania Chapter annual convention in State College, PA. Jim was humbled to present alongside a cast of terrific speakers, including Scott Perry, Deputy Secretary of the Office of Oil and Gas Management at the PA Dept. of Environmental Protection, Tom Murphy, Director of Penn State’s Marcellus Center of Outreach and Research (MCOR), and Scott Kurkoski, a top lawyer and head of the energy practice for Levene, Gouldin & Thompson (thanks for the ride home Scott!). One of the first attendees at the event to stop by the MDN table for a chat asked if we had heard about a letter recently sent by EQT to PA landowners. We had not. He gave us a copy (below). In the letter, EQT claims they have been “subsidizing a portion of the cost to gather the gas” produced by their PA wells, and they intend to begin claiming new deductions from royalty checks beginning this year. The way they position it in the letter is that landowners will begin “sharing” in these post-production costs. Who doesn’t like to share, right? We can tell you, not a single attendee at the event was impressed with EQT’s “sharing” letter. It smacks of the road Chesapeake Energy has gone down in robbing landowners of their royalties…
The Pennsylvania Dept. of Conservation and Natural Resources (DCNR) has just amended an existing lease with EQT that allows EQT to extract natural gas (and other hydrocarbons) from underneath the Monongahela River in Allegheny, Greene, Fayette, Washington and Westmoreland counties. EQT is paying $4,000 per acre for 392 acres ($1.568 million total) in a signing bonus, along with a big 20% royalty on anything produced. However, the announcement raises an important question we’ve asked for more than four years: Is the land under rivers and streams actually owned by the state? PA says yes. We suspect landowners who own land along those rivers and streams would say otherwise. The state grabbing money for land under bodies of water has been going on for years (see
One of the lies told by Pennsylvania Gov. Tom Wolf in attempting to sell a Marcellus-killing severance tax to the general population is that most of the tax would fall on businesses and corporations outside of PA. The rallying cry has always been that PA landowners would not bear any of the severance tax–as in deductions from royalties paid. That lie was exposed by none other than the PA Independent Fiscal Office last week when the IFO released a report that calculates of the estimated $210 million in severance taxes that would be raised, per year, by the latest Wolf proposal–some $28 million of it (over 13%) would come out of the pockets of landowners–IN THE FIRST YEAR. By the third year, that number rockets to $51 million (or 24%). That is, a meaningfully large portion of the proposed severance tax WILL get passed on to landowners as deductions from their royalties. Lesson for landowners: Don’t fall for the siren song from Wolf and RINOs who say “If you support the severance tax (it won’t affect you), we’ll get you your minimum royalty bill.” It’s a farce…
It takes a loooooong time to get a wastewater injection well approved and then up and running in Pennsylvania. Maybe that’s way there are less than a dozen of them in the entire state. In February 2014, the federal Environmental Protection Agency (EPA) gave a “final” approval to Windfall Oil and Gas to drill a wastewater injection well near Dubois (Clearfield County), PA (see
In a sad postscript, it appears that NG Advantage, which had once hoped to establish a virtual pipeline operation (compressing natural gas from the Millennium Pipeline) in the Town of Fenton (suburb of Binghamton), has finally given up on building the project in Fenton and is instead looking elsewhere. At least that’s our impression based on a couple of sources. We have no confirmation nor comment from NG–so this is purely our own speculation. However, a local television station in Binghamton recently noticed that NG is loading pipes onto a trailer, moving them out of the former construction site. The Town of Fenton Zoning Board of Appeals (ZBA) ruled in February that the facility does not qualify as an allowed use under existing zoning regulations (see
The Adorers of the Blood of Christ, a group of nuns in Lancaster County, PA, simply can’t stay away from sacrificing Christ on the alter of politics. The Sisters didn’t want the Atlantic Sunrise Pipeline project passing through their property. They own several buildings (one of them an old folks home heated with natural gas) on the very same property. The pipeline was due to run through a nearby field owned by the Sisters that they lease to a local farmer who grows corn on it. The Sisters took up with radical anti-fossil fuelers from Lancaster Against Pipelines to protest the project, putting a few wooden park benches and a flower tressle in the middle of the corn field, calling it a “chapel” (see
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
Pennsylvania Gov. Tom Wolf has been obstinate in demanding onerous new drilling rules for the conventional, as well as unconventional (shale) drilling industry since he took office. Reworked drilling rules for both conventional and shale drillers were done and ready to go under previous Gov. Tom Corbett. Then Corbett lost to Wolf, and Wolf demanded changes to the common sense rules everyone had already agreed to (see
The shale industry produces a lot of water. You read that right. The industry not only *uses* a lot of water (roughly 5 million gallons per well for fracking), it also *produces* a lot of water. Some 80% of the water used in fracking never comes back out of the ground–it seeps into the ground and stays there. However, there is naturally occurring water from the depths–from far below what we think of as “the water table” that sits a few hundred feet down. When you drill a hole in the ground a mile, or two miles down–there’s water down there too. It’s super-salty (full of minerals), which is why it’s called brine. In the industry the phrase used to describe this naturally occurring water is produced water. And it comes out long after fracking is over and done. It comes out for years–decades even. Drillers have to dispose of it somehow. The preferred method is to recycle it and use it for other drilling. When brine is recycled and the minerals (i.e. salt) is removed, the salt can be put to good uses, like spreading it on roads during the winter. Antis paint a scary picture of environmental holocaust in using “fracked salt”–but it’s nonsense. A bipartisan bill in Ohio is getting fresh attention, a bill that will allow for the sale of “fracked” brine for deicing roads in the Buckeye State during winter…
In August 2016, Millennium Pipeline, which stretches from Corning, NY to just outside New York City, filed an application for what it calls its Eastern System Upgrade (see