PA Marcellus News Digest
A large Digest today, since we have been away at a conference this week
"Truthland," the factual alternative to "Gasland," launches nationwide
Wallaby
June 14
Film leverages facts, interviews with experts to tell real story behind shale development; major summer screening tour kicks off.
The development of enormous reserves of American energy from tight formations such as shale has been hailed as a “game-changer” by the Energy Information Administration, as playing a “key role in our nation's clean energy future,” according to the Environmental Protection Agency, and as a means of helping our country “create jobs and power trucks and factories that are cleaner and cheaper,” President Obama said earlier this year.
Link: http://wallaby.telicon.com/PA/library/2012/2012061578.HTM
Van Gas Technologies Offers Economical and Ecological Solutions for Natural Gas Dehydration
Wallaby
PR Newswire
June 19
Harmful emissions are generated during natural gas dehydration as water vapor is removed from gas using traditional Triethylene glycol dehydrators. Water vapor and other impurities must be removed from natural gas, because these impurities can damage equipment and delay or stop transportation. "It is therefore necessary to employ dehydration systems," states Tyler Currie, Western Sales Manager for Van Gas Technologies. "Economical and ecology-friendly fuel gas conditioning is the focus of our business."
Link: http://wallaby.telicon.com/PA/library/2012/2012061988.HTM
Lutherans Call for Fracking Moratorium
Assembly cites human health concerns, advocacy for most vulnerable
Protecting Our Waters
Iris Marie Bloom
June 18
Less than a week after Pennsylvania farmers called for a moratorium on unconventional gas extraction, a large gathering of Pennsylvania Lutherans has also formally passed a resolution calling for a statewide halt on shale gas drilling.
Link: http://protectingourwaters.wordpress.com/2012/06/18/lutherans-call-for-fracking-moratorium/
Fitzgerald to Open First Session of Penn State Extension’s “Marcellus & Beyond” Shale Gas Summer Series
Wallaby
June 20
PITTSBURGH – Allegheny County Executive Rich Fitzgerald will provide opening remarks at the first session of Penn State Extension’s “Marcellus & Beyond” Shale Gas Summer Series at 7:00 p.m. on Tuesday, June 26, at Rodef Shalom’s Levy Hall located at 4905 5th Avenue in Pittsburgh’s Oakland neighborhood.
Link: http://wallaby.telicon.com/PA/library/2012/2012062076.HTM
Aqua America Increases Investment in Pennsylvania, New Jersey and Ohio to Address Water-Energy Nexus
Wallaby
Business Wire
June 20
BRYN MAWR, Pa.-Aqua America, Inc. (NYSE: WTR) Chairman and CEO Nicholas DeBenedictis detailed Aqua’s sustainability initiatives with respect to its growing water-energy nexus at the Citi Global Water and Renewables Investment Conference held today in New York City.
Link: http://wallaby.telicon.com/PA/library/2012/2012062038.HTM
White bill to create non-taxpayer fund for ethane-cracker development
Measure would let taxpayers off the hook for $1.6 billion Royal Dutch Shell tax credit
Wallaby
June 20
HARRISBURG, June 20 – State Rep. Jesse White, D-Washington/Allegheny/Beaver, is introducing legislation to attract the global gas company Royal Dutch Shell to Pennsylvania, but without the use of any taxpayer dollars.
Link: http://wallaby.telicon.com/PA/library/2012/2012062058.HTM
Governor Tom Corbett Highlights Potential for Jobs, Economic Growth from Building Petrochemical Industry in PA
Wallaby
June 20
Harrisburg – Governor Tom Corbett was joined today by members of his cabinet, elected state officials and representatives of labor and business to highlight the importance of bringing a petrochemical complex to Pennsylvania.
Link: http://wallaby.telicon.com/PA/library/2012/2012062045.HTM
White proposes surtax to support cracker plant
Observer-Reporter
Christie Campbell
June 21
Even as Gov. Tom Corbett on Wednesday highlighted the importance of bringing a petrochemical complex to Pennsylvania, a local lawmaker was introducing legislation to attract the complex and others without using taxpayer dollars.
Link: http://www.observer-reporter.com/or/story11/Corbett-cracker-plant
Justice is lacking in Shipman case
Observer-Reporter
Editorial
June 21
[...]For those who haven’t followed the story, Shipman, the former owner of a wastewater disposal company, was accused of dumping millions of gallons again, millions of gallons of gas-drilling wastewater, sewage sludge and restaurant grease into streams and mine shafts over a six-county area.
Link: http://www.observer-reporter.com/or/editorial11/Toothman-editorial
Marcellus talk draws crowd in Buffalo Township
Observer-Reporter
Scott Beveridge
June 21
TAYLORSTOWN A Clean Air Council representative and other environmentalists visited Washington County Wednesday to express and discuss their concerns about air pollution relating to the Marcellus Shale natural gas development boom.
Link: http://www.observer-reporter.com/or/story11/Buffalo-Marcellus-worries
Low natural gas prices contribute to risky renewable energy investing
Post-Gazette
Amy Friedenberger
June 20
Aol Energy covered the 9th Annual Renewable Energy Finance Forum Wall Street yesterday in New York. The common theme: renewable energy project financing and development is falling to the wayside as regulatory uncertainty and low natural gas prices continue to be a major influence, resulting in a risky situation for investors.
Link: http://shale.sites.post-gazette.com/index.php/news/archives/24634
New Data Documents Shale Gas Is The Difference Between Coal Booming Globally But Busting in North America
John Hanger's Facts of the Day
Blog
June 19
BP's 2011 Statistical Energy Review confirms that shale gas is the difference between coal booming or busting. Last year, coal boomed globally, reaching its highest share of global energy consumption since 1969, but it busted in North America.
Link: http://johnhanger.blogspot.com/2012/06/new-data-documents-shale-gas-is.html
Chesapeake Energy announces upcoming roadwork in northern Pa.
Daily Review
June 19
TOWANDA - Chesapeake Energy Corp. announced Monday the following ongoing, upcoming and completed roadwork projects in Bradford, Susquehanna, and Sullivan counties to improve regional transportation infrastructure. These projects are part of Chesapeake's ongoing commitment to responsible development of the Marcellus Shale in Pennsylvania. Chesapeake has invested more than $300 million since 2010 repairing and rebuilding more than 450 miles of road infrastructure in northern Pennsylvania and expects to invest $25 million this year upgrading approximately 56 miles of state roads and another $15 million on township roads:
Link: http://thedailyreview.com/news/chesapeake-energy-announces-upcoming-roadwork-in-northern-pa-1.1331625
Lawmaker fighting for release of air data
Observer-Reporter
Christie Campbell
June 19
Although the state Department of Environmental Protection insists nothing of significance was found from recent air testing at a Smith Township medical center, a local lawmaker wants the department to release the raw data from those tests.
Link: http://www.observer-reporter.com/or/story11/06-19-2012-White-DEP
Consider pros and cons of leasing before signing on
Observer-Reporter
Pat McCune and Bill Summers
June 18
It's no secret that the Marcellus is a capital intensive arena. The amount of equipment and inventory necessary to develop a world-class energy play are staggering. Businesses usually borrow money to buy property or equipment. However, for tangible assets, such as construction equipment or reusable items, you may wish to lease.
Link: http://www.observer-reporter.com/or/business11/06-18-2012-FINANCING-IN-THE-MARCELLUS---MON-BIZ
New Data Documents Shale Gas Is The Difference Between Coal Booming Globally But Busting in North America
John Hanger's Facts of the Day
Blog
June 19
BP's 2011 Statistical Energy Review confirms that shale gas is the difference between coal booming or busting. Last year, coal boomed globally, reaching its highest share of global energy consumption since 1969, but it busted in North America.
Link: http://johnhanger.blogspot.com/2012/06/new-data-documents-shale-gas-is.html
PA Loses Jobs in April & May: Needs More Than Just Marcellus Shale
John Hanger's Facts of the Day
Blog
June 18
After compiling a jobs creation record over the last year that put Pennsylvania among the worst performing states, Pennsylvania has lost jobs during April and May. Here are the troubling numbers that demonstrate Pennsylvania needs more jobs than the gas boom by itself can provide.
Link: http://johnhanger.blogspot.com/2012/06/pa-loses-jobs-in-april-may-needs-more.html
SWPA-EHP releases guidelines to monitor, test private wells
Post-Gazette
Amy Friedenberger
June 18
The Southwest Pennsylvania Environmental Health Project, nonprofit environmental health project funded by The Heinz Endowments, the Pittsburgh Foundation and the Claneil Foundation, released a set of guidelines for monitoring and testing private wells in the effort to address the concerns of Washington County residents who are worried about the safety of water from private wells near natural gas drilling locations.
Link: http://shale.sites.post-gazette.com/index.php/news/archives/24628-swpa-ehp-releases-guidlines-to-monitor-test-private-wells
Big test for Corbett looms in election, tax credit
Times Leader
Marc Levy, AP
June 18
HARRISBURG — It’s budget season again for Gov. Tom Corbett, and that means the same thing as last year: His approval rating has plummeted as Pennsylvania’s no-new-taxes chief executive preaches austerity for public schools and social services while prescribing tax cuts and tax breaks for businesses.
Link: http://www.timesleader.com/stories/Big-test-for-Corbett-looms-in-election-tax-credit,164883
Chartiers residents voice concern over gas well
Observer-Reporter
Kathie O. Warco
June 16
During a public hearing Tuesday on a proposed oil and gas extraction ordinance to make Chartiers Township compliant with the state's new gas drilling law, the supervisors heard from residents unhappy a gas well may be coming to their neighborhood.
Link: http://www.observer-reporter.com/or/story11/06-16-2012-chartiers-act-13-hearing
Drilling won’t threaten Pa. parks, officials say
The Vindicator
Jeanne Starmack
June 17
[...]
The view is breathtaking, and worth protecting. There is no fracking going on underneath the gorge — fracking is not allowed under any state park land, said Terry Brady, deputy press secretary for the Pennsylvania Department of Conservation and Natural Resources.One of the wells is drilled and fracking is under way, said John Poister, spokesman for the Pennsylvania Department of Environmental Protection. Work has started on a second well.
What would happen if a well casing failed, or a blowout threatened the watershed or the creek?
Poister said the DEP regularly inspects the wells, even when they are capped, to make sure no failed casings could allow fracking fluid or natural gas to migrate to ground water.
Link: http://www.vindy.com/news/2012/jun/17/drilling-wont-threaten-pa-parks-official/
Panel OK's bill to keep gas drill waste out of NJ
Bloomberg Businessweek
Andrew Duffelmeyer
AP
June 15
Lawmakers on Thursday approved legislation banning hydraulic fracturing byproducts from other states from entering New Jersey, citing concerns about waste from neighboring Pennsylvania endangering public health and the environment in the Garden State.
Link: http://www.businessweek.com/ap/2012-06/D9VDJSR00.htm
Fracking Forces Central PA Mobile Home Residents Out
Allegheny Front
Emily Reddy
June 16
(includes audio)
Just over three months ago residents of a mobile home park in Central Pennsylvania were told they had to leave. The Riverdale Mobile Home Park, near Jersey Shore, had been sold.
Link: http://www.alleghenyfront.org/story.html?storyid=201206141024390.197551
If state must compete, tax credits are better option
Patriot-News
David E. Black, President Harrisburg Regional Chamber & Capital Region Economic Development Corporation
Letter to the Editor
June 15
[...]The Corbett administration has been a quiet, nose-to-the-grindstone bunch for the most part. That's good from a work perspective, but in the realm of public policy it gives political opposition the opportunity to define Team Corbett, which is unfortunate given the challenges of government in these times of a still soft economy, growing pension costs and flat (at best) revenues.
Link: http://www.pennlive.com/letters/index.ssf/2012/06/if_state_must_compete_tax_cred.html
Gov. Corbett advocates for state's environment
Gas wells in parks more than a drill
Pitt Trib
Nafari Vanaski
June 13
It's a gorgeous day and you don't have to go to work, so you pack a lunch and go on a picnic in the park with a friend.
The two of you decide to toss around the Frisbee. On your first throw, the wind takes it -- right into a drilling rig.
Talk about a daydream buster. It might sound far-fetched, but if Allegheny County Councilman Matt Drozd has his way, it might happen.
Link: http://triblive.com/news/columnists/1994030-74/drilling-parks-drozd-county-gas-park-lot-acres-allegheny-arabia
Labor fights unpaid OT in gas industry
Standard Speaker
Laura Legere
June 15
The U.S. Department of Labor has started a new effort to combat unfair pay practices in the natural gas industry in the northeastern United States, focusing on subcontractors who avoid paying taxes, overtime and workers' compensation premiums by wrongly classifying employees as independent contractors.
Link: http://standardspeaker.com/news/labor-fights-unpaid-ot-in-gas-industry-1.1330049
Gas group CEO: Industry must communicate with adversaries
Observer-Reporter
Michael Bradwell
June 15
With America's recent ascent as the world's No. 1 producer of natural gas, it would appear that Regina Hopper's job would be an easy one.
In November 2009, Hopper was named president and chief executive officer of the newly created America's Natural Gas Alliance, which represents 30 of North America's largest independent natural gas exploration and production companies, which include those working in the unconventional shale plays that have produced a surplus of natural gas over the past few years.
Link: http://www.observer-reporter.com/or/story11/06-15-2012-ANGA-PRESENTATION-TO-CHAMBER
Pennsylvania lobbying for DRBC fracking rules
Morning Call
Tim Darragh
June 14
Gov. Tom Corbett's administration has been lobbying neighboring states to approve regulations to open the Delaware River basin to natural gas drilling, a plan that came to a screeching halt in November when Corbett's counterpart in Delaware said the proposal lacked sufficient public health protections.
Link:http://www.mcall.com/news/nationworld/pennsylvania/mc-allentown-marcellus-fracking-20120614,0,4013578.story
CORBETT: SHELL CRACKER PLANT COULD SPUR “NEW INDUSTRIAL REVOLUTION” IN PA
Pennsylvania Legislative Services
Mike Howells
Juen 21
(full text below)
Gov. Tom Corbett was joined today by members of his administration, the General Assembly, and business and labor leaders to tout the employment and economic potential of a Royal Dutch Shell ethane cracker plant in Beaver County. Legislation has been offered to provide Shell, which is considering a number of other locations in other states, $66 million in annual performance-based tax credits if the company locates the plant in western Pennsylvania. Pennsylvania is currently the primary choice for Shell as it considers its options.
“We are investing in the opportunity for thousands of Pennsylvanians to have a good job,” Gov. Corbett said. According to the American Chemistry Council (ACC), the petrochemical complex could result in 10,000 construction jobs, 400 direct plant jobs, and 17,000 associated jobs in related industries.
Labor and Industry Secretary Julia Hearthway said the plant could be a “big win” for the state’s labor force and for its business owners, and would create an entirely new industry segment in the Commonwealth.
Gov. Corbett emphasized the initiative is bipartisan in nature, and called the tax credit, HB 2478, sponsored by Rep. Jim Christiana (R-Beaver), “a jobs bill.”
“Even across the party lines, even across the lines of labor and business, we all understand that this is an opportunity for the future of our state,” Gov. Corbett said.
“We are investing…in a new industrial revolution in Pennsylvania,” the governor added. He detailed potential benefits of the industry that would extend beyond Beaver County, notably cheap ethane for consumer product manufacturers throughout the Commonwealth.
“The benefits of employing 10,000 more Pennsylvanians and lowering the cost of raw materials for Pennsylvania manufacturers for outweigh the investment that we’re making,” Gov. Corbett contended.
Allegheny County Executive Rich Fitzgerald, a Democrat, said the potential for “new wealth” flowing into the western part of the state as a result of Shell building the plant in Beaver County means all sides have to come together to achieve a consensus. He emphasized the state is “not giving anything away” and said for the $66 million annual tax credit cap, Shell will have to achieve a variety of benchmarks related to economic development.
Frank Sirianni, President of the Pennsylvania Building Construction Trades Council, said the measure would mean a great deal to the construction industry in Pennsylvania.
“We are usually the last ones to recover from an economic downturn,” Sirianni said, noting unemployment in the construction sector remains above 20 percent across the Commonwealth. “We are urging every legislator to step forward and work on this issue.”
John DeFazio, District Director for US Steelworkers, called the possibility of the cracker plant “the opportunity of ten lifetimes.” He said the payout for the Commonwealth will be “good paying jobs” that he suggested will remain for many years.
Sen. Elder Vogel (R-Beaver) expressed confidence the Shell plant, if located in Beaver County, would change the face of Southwestern Pennsylvania. He expressed his thanks to the company for considering Pennsylvania given the fact that Louisiana already has the infrastructure in place to accommodate the plant.
“We have the chance of a lifetime, once again, to start something here,” Sen. Vogel said.
Sen. Tim Solobay (D-Washington), whose district includes part of Beaver County, pointed to the success of the Commonwealth's Film Tax Credit in attracting the movie industry and turning Pennsylvania into “the Hollywood of the East.” He indicated the tax credit being offered in HB 2478 could help the Commonwealth retain its status as the “Energy Capital of the East,” while reinvigorating the manufacturing sector.
Sen. John Wozniak (D-Cambria), a native of Johnstown, offered a glimpse into the effects the collapse of manufacturing had on cities throughout Pennsylvania, including Johnstown, Pittsburgh, and Bethlehem. He said the opportunity to bring manufacturing back to Pennsylvania requires all parties to work together quickly to conclude the deal.
Rep. Jim Christiana (R-Beaver), sponsor of HB 2478, thanked Gov. Corbett and his administration and said the governor is part of the reason for Pennsylvania's success so far in the race to win the cracker plant. He remarked the tax credit he authored is not tailored to one single company or even one industry.
“We need to create a partnership with government, labor, and private business to put our folks back to work,” Rep. Christiana said.
Rep. Rob Matzie (D-Washington) recounted how his grandfather, an Italian immigrant, came to America and found work with the American Bridge Company for forty years. He said his family has never lived more than a third of a mile from the rowhouse that was built by the American Bridge Company for his grandfather to live in, and expressed hope a rejuvenated manufacturing sector can ensure such traditions can continue in Pennsylvania.
David Taylor, Executive Director of the Pennsylvania Manufacturing Association, said the coalition assembled in support of the Shell plant is “pro-production.” He said its goal is to “seize the high common ground” to achieve more prosperity for Pennsylvania and “especially the 475,000 Pennsylvanians who are today looking for work.”
Taylor called the proposed tax credit “perfectly defensible,” arguing it is performance-based, makes for a lasting investment as the plant would be “impossible” to move once sited, and promises guaranteed technologies and products.
“Any Pennsylvania manufacturer using ethylene in its production process would benefit,” Taylor said.
Speaking to his confidence in the job estimates provided by the ACC, Gov. Corbett said the projections are based on past experiences in the industry and were made by people who have a great deal of experience in the sector. He added the Commonwealth is in competition with Ohio, West Virginia, and Louisiana, among others for the plant. The governor pointed out that there are also projections that a cracker plant would attract other associated businesses to Pennsylvania statewide. He noted propane is a byproduct of the process and said companies in the southeast may look to obtain their propane from Shell as a result.
Gov. Corbett indicated both the Department of Revenue and the Department of Community and Economic Development are currently engaged in internal “fact-checking” of job and economic growth projections. He noted there are also lessons being taken from the industry that exists on the Gulf Coast and said in Pennsylvania the plant would be that much closer to the “feedstock” of natural gas which would then stay within the state. Sec. Hearthway clarified an early estimate of 6,500-8,000 jobs from her department is only the first of two phases of its projection, and includes only the construction jobs and not ongoing operations.
“Numbers – it's going to be a lot of jobs,” the governor stated.
Gov. Corbett reported the administration is currently conducting outreach with legislators and expressed confidence “support will be there” to pass a tax credit bill. With respect to concerns voiced by some lawmakers that the $66 million annual figure has the potential to grow, Gov. Corbett stressed the law has not been passed yet. He predicted considerable debate on both the House and Senate floor and indicated the possibility that the figure, as it is finalized, could well “see movement.”
On the question of what assurances exist that the tax credit will not be “misused,” Gov. Corbett reiterated the credit is performance-based, and will only be conferred if Shell meets various economic goals. He expressed confidence revenues from the new industry will meet or exceed the value of the tax credit.
Asked what impact the tax credit may have on education spending, Gov. Corbett emphasized the initiative has no impact on the upcoming budget, and conceded the current budget environment remains “tough.” He indicated a strong likelihood more money will be put back in on top of the original proposed budget in various areas.
On the possibility of more “broad-based” tax reductions to encourage smaller companies to generate smaller numbers of jobs, Gov. Corbett said “I don't see those kinds of companies coming in and saying 'we're going to provide thousands of jobs – we don't want you to give us money up front, we want to earn it.'” He conceded, however, that he and the legislature would likely listen to other companies who made such a pitch.
CLEAN WATER ACTION RALLY FOR MARCELLUS GAS DRILLERS TO IMPROVE PROTECTIONS
Pennsylvania Legislative Services
Jasmine Ohadi
June 19
(full text below)
Numerous members from environmental and community organizations gathered today at the Capitol for a rally organized by Clean Water Action to demand that the three major Marcellus Shale gas drilling companies improve their protections for Pennsylvania communities from natural gas drilling activities.
Myron Arnowitt, PA State Director for Clean Water Action, briefly stated various issues concerning drilling near residential communities. “We will ask them over and over again when they will get CLEAN.”
According to Arnowitt, CLEAN embraces five steps to improve protections: Comply with new EPA air regulations; end the use of frack pits to prevent leaking; end the allocation of wastewater into rivers; partake in annual testing for all water supplies near gas wells; and zone oil and gas operations at least 3,000 feet from residential or commercial areas.
Ralph Kisberg, President of the Responsible Drilling Alliance, made few statements regarding Range Resources, commenting on the industries several environmental mishaps over the years. According to Kisberg, three Washington County families are suing Range Resources for conspiracy to conceal the families’ exposure to toluene, benzene, arsenic, cobalt and cadmium.
“We all know what is in Article 1, Section 27 of the PA Constitution—‘the people have the right to clean air, pure water, and the preservation of the natural, scenic, historic, and atheistic value’s of the environment,’” Kisberg stated.
“Range does a better job than other drillers in terms of violations, but that does not excuse the problems they have caused and continue to cause. Legislation that allows them to destroy people’s quality of life, and effect their health, or ruin their property values, while hiding behind a heartless legal system does not give Range the moral authority to do what we know what they have done to those people,” Kisberg added.
Heather Arnet, CEO of the Women and Girls Foundation, introduced several speakers from their GirlGov program. “We are certainly in favor of having jobs—we all need jobs in our state, and we especially need jobs for women,” she said. “But as we focus on the economic development of our region, we should also make sure that we are securing the basic human rights to clean air and clean water.”
Veronica Tatone, a resident of Derry Township, expressed her concerns and experiences living in a community where drilling operations occur not far from her home. According to Tatone, there were several instances where fires occurred due to flammable gas at the drilling sites.
Pam Parson, Gas Truth of Central PA, also expressed her frustrations with drilling operations.
