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    PA House Passes Bill Exempting Conventional Drillers from Shale Regs

    In March, two identical bills were introduced, one in the PA Senate, the other in the PA House, that would “roll back” (more like “lock in”) regulations that govern conventional PA drilling to the Oil and Gas Act of 1984 (see 2 PA Bills Would Roll Back Conventional Drilling Regs to 1984). The bills are in response to coming changes proposed by leftist Gov. Tom Wolf to over-regulate conventional drillers. Big Green didn’t waste any time opposing the bills, spinning them as a lessening of environmental protections in a letter to legislators (see Big Green Opposes Bill to Relax Regs for PA Conventional Drillers). The big news is that the House’s version of the bill, HB 2154, passed yesterday by a vote of 111-84. The issue now swings to the Senate (SB 1088), where its future is more uncertain. Let’s assume the Senate passes SB 1088 (a really big assumption). Lefty Gov. Tom Wolf is vehemently against it and will veto the bill when it hits his desk–so says one of his top lieutenants. It’s not clear if there would be enough votes in the Senate (or House) to override a Wolf veto. Hey, we’re still hopeful, but in all honesty, this legislation faces an uphill battle…
    Read More “PA House Passes Bill Exempting Conventional Drillers from Shale Regs”

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    PA House Speaker Turzai Nukes Wolf’s Severance Tax Proposal

    Speaker of the PA House, Mike Turzai – credit: Wikipedia

    A few weeks ago Secretary of the Pennsylvania Dept. of Community and Economic Development (DCED), Dennis Davin, wrote an embarrassing editorial published in the Pittsburgh Post-Gazette (see Once Again Wolf Pushes DCED Sec. to Support Severance Tax). Davin knows that a high severance tax will drive Marcellus drillers out of the state–but (we conclude) he wants to keep his job for another four years, so he goes out as the spear-catcher for his boss, lefty Gov. Tom Wolf. PA House Speaker Mike Turzai is an impressive guy. He’s always stood, steadfast, with the Marcellus industry, against Wolf’s insane plan to tax the industry out of existence. Turzai sent the Post-Gazette a column of his own, to counter the inanities of Davin’s column–and wonder of wonders, they published it! Turzai does a masterful job with his response to Davin. Our favorite part is where Turzai obliterate’s Davin’s claims about the “minimal” revenue raised by PA’s impact fee. In PA, instead of a severance tax, the legislature passed an impact fee (i.e., tax) in 2012, which has raised far more than the severance tax in neighboring states. For example, in 2017, Ohio raised $36.7 million via its severance tax. In 2017, West Virginia raised $69 million from its severance tax. In 2017, PA raised a whopping $173.3 million from its impact fee. Tell us again, Mr. Davin, about the “superiority” of a severance tax!…
    Read More “PA House Speaker Turzai Nukes Wolf’s Severance Tax Proposal”

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    3 Mass. Kids Arrested for Blocking MVP Work in W.V.

    Click image for larger version

    Three radicalized children from Massachusetts–kids who irrationally hate fossil fuels–chained themselves to construction equipment in Monroe County, WV in an attempt to block work on the Mountain Valley Pipeline (MVP). It’s the latest tactic by the left to overthrow our system of laws and justice in a misguided attempt to stop man-made global warming. The three, one boy and two girls (aged 24, 21 and 18) delayed construction for “a few hours” before police “cut them out” and arrested them. All three were charged with misdemeanors: for trespassing, obstructing justice, and resisting arrest. If convicted, they could spend up to two and a half years in jail. Notice the kids are part of an organized Big Green movement. All three are out-of-staters, sent there to make trouble. We wonder if the glamour will wear off after they sit in a cold, mountain jail cell for a few months? Our only conclusion as to why these kids would behave like this is miseducation. They’re ignorant–of history, the U.S. Constitution, and frankly, of the real world. Too much time with their noses stuck in a cell phone or watching cartoons. No training in rational thinking. Notice (below) how Big Green spins the episode, that the police “threatened violence” against the protesters. Which means the police told the spoiled rotten kids, “stop it now or we’ll (gently) cut you out and take you to police HQ.” That’s how radicals define police “violence.” Here’s the news of the latest Big Green offensive against MVP–an offensive that uses ignorant kids…
    Read More “3 Mass. Kids Arrested for Blocking MVP Work in W.V.”

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    The Battle for Dawn Hub Begins: M-U vs. Western Canada

    Canadian natural gas customers in Ontario and Quebec can expect to begin paying less for their gas, courtesy of their American cousins. Starting last week, Marcellus/Utica gas is now flowing all the way to the Dawn Hub in Ontario, via the Rover Pipeline connected to the Vector Pipeline (see M-U Gas Now Travels to Dawn Hub in Canada via Rover Pipeline). Western Canadian producers beat Rover to the punch last year when TransCanada radically reduced prices to cart gas thousands of miles away to the Dawn Hub (see Canadian Lowball Shipping Works, Grabs Market Share from U.S.). Now that M-U gas is also hitting the Dawn Hub, there’s an abundance (over abundance?), which has driven prices to their lowest in 10 years. The battle for Dawn Hub, between M-U and Canadian gas, has begun, and Canadian gas customers are already winners…
    Read More “The Battle for Dawn Hub Begins: M-U vs. Western Canada”

  • Energy Stories of Interest: Wed, Jun 6, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Mariner East 2 landowner accused of harassing workers; PA state legislators ask feds to support ethane storage hub; Rick Perry’s Obama imitation; UK renews pledge of support for shale gas; Europe still addicted to Russian gas; Saudi, Russia move to curb oil price surge (for now); and more!
    Read More “Energy Stories of Interest: Wed, Jun 6, 2018”

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    EQT Looks to “Graduate from” (Exit) Huron Shale “Prep School”

    Looks like EQT, the largest natural gas-producer in the U.S., is graduating from prep school. That is, EQT is about to sell all of its remaining assets in the Huron Shale play. The Huron is located mainly in West Virginia and Kentucky, also poking up into Ohio and traveling along the edge of Virginia. Most of EQT’s considerable Huron assets (some 12,000 wells) are located in Kentucky. From what we can tell, most of those wells are conventional. That is, not horizontal wells but vertical. The Huron was EQT’s early experiment in shale before shale was “a thing.” EQT played around in the Huron to learn how to drill in shale. According to former CEO Steve Schlotterbeck, “the Huron play was like prep school for us.” Last Thursday EQT filed a Form 8-K with the Securities and Exchange Commission advertising the news they have plans to sell their Huron assets–not only the wells but the pipeline system that connects the wells…
    Read More “EQT Looks to “Graduate from” (Exit) Huron Shale “Prep School””

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    U.S. Supreme Court Lets Stand Eminent Domain for ME2 Pipeline

    It’s been a long, tough fight to get the Mariner East 2 Pipeline (ME2) project built. In fact, it’s still not 100% built (it is about 98% done). Construction on a tiny section near Philadelphia is currently being stopped by a liberal judge (see Antis Get Lib Judge to Shut Down All Mariner East Pipes, Dems Rejoice). We expect that to be resolved soon. However, the project has been sued multiple times in different courts. One of the favored legal arguments was/is to say the project does not have the right to use the power of eminent domain to force recalcitrant landowners from accepting it. One such case, brought by a Lebanon County, PA landowner, was appealed all the way to the U.S. Supreme Court. On Monday the Supremes declined to review the case, a challenge to ME2’s ability to use eminent domain, thereby cementing a ruling by the PA Commonwealth Court that ME2 can indeed use eminent domain. Period. End of sentence. The Supreme Court ruling is just the latest in a string of rulings favoring the ME2 project. Last summer, a three-judge Commonwealth Court panel ruled in favor of ME2, upholding its status as a public utility because it will provide increased public access to energy resources like propane. Huntingdon County Common Pleas Court Judge George Zanic ruled against efforts to delay construction of ME2 after Commonwealth Court validated the utility status by dismissing an appeal. None of this is new. The court have repeatedly ruled against challenges to the state Public Utility Commission’s designation of ME2 as a public utility with  public benefits. And now, the Supremes have rendered the final word: ME2 is a public utility…
    Read More “U.S. Supreme Court Lets Stand Eminent Domain for ME2 Pipeline”

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    Westmoreland Town Votes to Overturn Restrictive Shale Ordinance

    Elections have consequences, including local elections. Here’s a story that caught our eye because it’s so unusual (“man bites dog” type of story). Donegal Township in Westmoreland County (southwestern PA) is a rural township: population 2,465 people living in 42 square miles. There was some Marcellus well drilling in the town several years ago, but after WPX plugged wells in the town (see WPX Plugging 9 Wells in Westmoreland County, PA), we find no actively producing wells nor any permits to drill new wells, according to the forthcoming Marcellus & Utica Shale Upstream Almanac 2018 (due out later this week!). Even so, most residents support more Marcellus development. We base that on this observation: A previous town board passed a restrictive zoning ordinance, aimed at blocking shale drilling. Donegal had no zoning ordinance of any kind before the board passed one (last year? year before?). Opponents to the ordinance got themselves elected to the board last November and last Tuesday night voted 4-1 to repeal the zoning ordinance put there by the previous board. According to one of the new board members, tossing out the zoning ordinance “will be helpful to the residents because they’ll have more freedom.” What a breath of fresh air!…
    Read More “Westmoreland Town Votes to Overturn Restrictive Shale Ordinance”

  • WV Files Motion to Dismiss EQT Lawsuit Targeting Royalty Law

    Earlier this year the West Virginia legislature passed Senate Bill (SB) 360, which Gov. Jim Justice subsequently signed into law (see WV Gov Justice Signs Bill to Guarantee 12.5% Minimum Royalty). The new law overturns a ruling by the WV Supreme Court in Leggett v. EQT Production, a case in which the Supremes (in a very unusual move) reversed their own previous decision and allowed EQT to deduct post-production expenses in old flat rate leases. In essence, SB 360 guarantees rights owners/landowners a 12.5% minimum royalty, regardless of post-production deductions–but only in flat rate leases. A flat rate lease is a lease in which a company pays a regular (in EQT’s case, annual) payment, regardless of how much oil/gas is produced. Traditionally drillers don’t deduct post-production expenses because the payments landowners get are piddly anyway. But then EQT began to claim deductions, prompting a lawsuit that went all the way to the Supreme Court. The legislature aimed to “fix” what they considered an error in the court’s ruling. EQT claims the new law is unconstitutional and in April filed a lawsuit asking a judge to stop the law from taking effect (see EQT Sues WV for Passing Minimum Royalty Law re Flat Rate Leases). WV has just responded, in a big way, by asking the judge to dismiss EQT’s lawsuit…
    Read More “WV Files Motion to Dismiss EQT Lawsuit Targeting Royalty Law”

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    Quaker “Friends” Turn Unfriendly re Pipelines, Support Illegal Action

    Who knew that Quakers, formally known as the “Religious Society of Friends” or “Friends Church,” could be so, well, unfriendly? Turns out the Quakers, who at first blush you might think are conservative, like the Amish, are far-left liberals. At a recent meeting of the Roanoke Friends, the Quakers adopted a statement (below) to “speak out against two natural gas pipelines [Mountain Valley Pipeline and Atlantic Coast Pipeline] proposed in Virginia, and all pipelines transporting gas extracted by hydraulic fracking. Fracking is a process documented to contaminate air and water with toxic chemicals, accelerating climate change and encouraging our dependence on fossil fuels.” Sorry my Quaker friends, but you just out-and-out lied. Fracking is not documented to contaminate air and water with toxic chemicals. Period. If you have real scientific evidence to the contrary, please produce it. If we take them at their word, the “friendly” Quakers want all pipelines that flow natural gas everywhere–including the ones that feed their own homes (!)–to be shut down. All pipelines, including local utility pipelines that feed the homes of millions of Americans, flow “fracked” gas. Most gas these days is “fracked.” The “friendly” Quakers also state their support of illegal, law-breaking protesters who sit in trees against a judge’s order, to stop work on pipelines. The Quaker Friends in Roanoke have shown themselves to be just one more non-thinking, knee-jerk reacting group of liberals who really don’t know what they’re talking about…
    Read More “Quaker “Friends” Turn Unfriendly re Pipelines, Support Illegal Action”

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    All MVP Tree-Sitting Protesters have Now Dropped Back to Earth

    We’re happy to report that “Fern” and “Decard” have joined “Ink,” “Sprout,” “Red” and “Nutty” back here on Mother Earth. No, we’re not talking about a new Disney “Snow White” remake (Sneezy, Sleepy, Dopey, et al). The names we listed are the names of so-called protesters who have been sitting in the tops of trees (or in the case of Fern and Nutty, on top of poles) in Virginia, part of an illegal action to prevent the construction of the Mountain Valley Pipeline. These last two protesters, Fern and Decard, were recently forced down to earth and arrested. Pipeline construction through the areas they once occupied has resumed. Which is good news. This bunch of kooks were making a mockery of our justice system. Nutty was a woman who sat on top of a pole for nearly two months. Yeah, her self-selected nom de guerre was appropriate. She finally came down two weeks ago when she ran out of Snickers bars (see MVP “Nutty” Protester Drops Back to Earth – Out of Food). But around that same time, another woman, Fern, went up a pole about a mile up the road from Nutty (see “Nutty” is as Nutty Does – 2nd MVP Protester Goes Up a Pole in VA). Fern only last a couple of weeks–not nearly as long as her “hero” Nutty. We’re just happy to say that all of the nuts have now dropped to earth and we can put this sad chapter behind us…
    Read More “All MVP Tree-Sitting Protesters have Now Dropped Back to Earth”

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    Trump Makes Rare Wrong Move – Protects Coal & Nuke Plants

    We admire President Trump and the job he’s doing–and aren’t afraid to say so publicly. However, we don’t always agree with his decisions and policies. This is one of those times. In fact, we strongly disagree with a new Trump policy. President Trump has decided that the nation’s electricity grid, in order to be “secure” and not vulnerable to outages, needs to have a diversity of sources producing electricity. Even if those sources (coal and nuclear) are no longer economic. Natural gas, and to a far less degree, renewables like wind and solar, are replacing both coal and nuclear power plants. The gas is abundant, it’s cheap, it burns clean and just makes sense. Yet powerful lobbying interests for coal and nuclear have convinced Trump that without their higher-priced electricity in the mix, the country is somehow threatened. That’s bunkum. Last Friday, President Trump ordered Dept. of Energy Secretary Rick Perry to “prepare immediate steps” to stop the coal and nuke plants from retiring. That is unfortunate. Obama picked energy winners and losers. Fossil fuels like coal were targeted for extinction by Obama. Now, Trump is doing the same thing but in reverse. By propping up coal and nuclear, he will make electricity far more expensive for everyone. The right answer here, as it always has been, is to let the free market work…
    Read More “Trump Makes Rare Wrong Move – Protects Coal & Nuke Plants”

  • Energy Stories of Interest: Tue, Jun 5, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Dem FERC Commissioners keep voting against pipelines re global warming; whatever happened to Dakota Access Pipeline?; Williams appoints new independent board member; Cali judge extols the virtues of fossil fuels; 15 states ask judge to dismiss “climate” lawsuit; the path to American energy independence – shale; U.S. natgas markets now tied to LNG exports; Poland wants to buy into American LNG exports; India begins importing Russian LNG; Japan’s Isuzu tests LNG truck; and more!
    Read More “Energy Stories of Interest: Tue, Jun 5, 2018”

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    Rumor: EnCap Working on Plan to Merge Eclipse & Penn Energy

    Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA, announced in March the company is looking for another company to buy, or (more likely) for another company to buy them (see Eclipse Resources Board Considering Either Merger or Acquisition). We have some new news to report, about a potential sale of Eclipse. Or more properly, a potential merger. EnCap Investments is a private equity/investment firm headquartered in Houston. EnCap owns a majority of Eclipse’s common stock. Put another way, Eclipse is considered a “portfolio company” of EnCap–because he who owns the most stock controls the company. EnCap has a number of portfolio companies–other energy companies in which they invest. One of them is PennEnergy Resources, an active driller in the southwest PA Marcellus (see Top 10 Drillers in SWPA, by Number of Permits Issued). According to sources who have spoken to the Pittsburgh Business Times, EnCap is actively pursuing a combination/merger between Eclipse and Penn Energy…
    Read More “Rumor: EnCap Working on Plan to Merge Eclipse & Penn Energy”

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    PA Supreme Court Rules on Gorsline Zoning Case – Mixed Decision

    Not long after the Pennsylvania legislature passed the Act 13 Marcellus Shale drilling law in 2012, signed into law by then-Gov. Tom Corbett, seven selfish towns sued, claiming they should have the right (via zoning laws) to determine just where an oil and gas well can be located within their borders. The challenge was brought by rabid anti-drillers and appealed all the way to the PA Supreme Court, where unfortunately the antis won (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). What the antis didn’t think about was the fact some towns may decide to exercise their newly-won rights to allow wells, instead of prohibit them. Whoops. Guess they didn’t see that one coming. A town in Lycoming County decided to allow a shale well on property zoned residential/agricultural (i.e. farming country) by using a “conditional use” permit. Anti-drilling Big Green groups, including PennFuture, THE (arrogant) Delaware Riverkeeper, and the Peters Township gang (none of which are from mid-PA where the town is located) sued to deny the town the right to exercise its Act 13 authority to allow a shale well. The case, Brian Gorsline v. Board of Supervisors of Fairfield Township (Gorsline is an avowed anti-driller), was appealed to the PA Supreme Court and in March 2017 (over a year ago!) the Supremes heard oral arguments (see Gorsline Zoning Case Argued Before PA Supreme Court Justices). Last Friday the Supremes came down from Mt. Olympus to issue their ruling–and they ruled (4-3) against the town and for the antis. However, before you jump to any conclusions and before you believe headlines from Big Green supporters trumpeting their “victory,” you need to know this: the decision potentially makes it harder (not easier) for antis to stop drilling in the future. We’ll explain…
    Read More “PA Supreme Court Rules on Gorsline Zoning Case – Mixed Decision”

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    PA Supreme Court Upholds Block on DEP Chapter 78a Drilling Regs

    In October 2016, after five years in the making, Pennsylvania 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). The judge agreed to “temporarily” block some of the items in the MSC list (see PA Judge Temporarily Blocks Some DEP Chapter 78a Drilling 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 (see PA DEP Asks Supreme Court to Overturn Stay on New Regs). Last October the Supremes heard oral arguments in the case (see PA Supreme Court Hears Arguments on DEP Request to Unblock Regs), and on Friday 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…
    Read More “PA Supreme Court Upholds Block on DEP Chapter 78a Drilling Regs”