Category Archives: Fracking

A Wrong Turn For Southwest Pennsylvania

Photo: The bright lights and early emissions of the Shell Pennsylvania Petrochemical Complex in Potter Township, Beaver County.

Petrochemical plants are an environmental and economic dead end

By Matt Mehalik
Pittsburgh Post-Gazette Op-Ed

DEC 11, 2022 – Southwestern Pennsylvania could have a brighter and healthier future — if only our state and region made better economic investments. After all, you get what you pay for.

Instead, the region is on a path to a dead-end by pursuing a futile, harmful fossil-fuel based economic strategy. Just last month, Shell’s massive polyethylene resin plant began production near Pittsburgh and is already proving to be a threat to the area.

What’s worse, Pennsylvania taxpayers are bankrolling it. Pennsylvania granted Shell $1.65 billion in state tax credits in 2016, one of the largest tax incentives in state history. In addition, in November the state legislature and governor passed and signed a bill that provides over $2 billion in subsidies over 20 years for natural gas, hydrogen and petrochemical industries — with less than a half-day’s notice and no public hearings.

Additionally, the Department of Energy is looking to provide $8 billion in additional federal subsidies for fossil-based hydrogen hubs. Despite alternative strategies for accelerating decarbonization and promoting inclusive economic growth, our region’s leadership doubled down on a call for fossil fuel subsidies, as detailed in “Our Region’s Energy Future” by the Allegheny Conference on Community Development earlier this year.

The Shell subsidy alone would be enough to cover a payroll of $95,000 per year over 25 years for the 400-600 permanent employees the plant was expected to employ. Shell stated that at peak construction, the site employed more than 8,500 workers. However, these temporary jobs mostly went to construction workers from other states, and have dropped now that the plant is open.

Why should taxpayers continue to subsidize a mature industry that does not deliver jobs and prosperity widely to our communities, and that also locks in harmful air, water and climate pollution?

The Pittsburgh region still suffers from some of the worst air pollution in the country. Allegheny and Beaver County for example, have elevated cancer risks and rates of asthma, heart disease and early deaths. Pennsylvania as a whole has the greatest number of excess deaths due to exposure to fine particle air pollution from fossil fuel sources per person in the country. And half of the region’s pollution still comes from industrial plants.

Emissions from the new Shell plant will add to the already-devastating concentration of pollutants in our air, and undermine the country’s progress on meeting national climate goals. The Shell plant in Beaver County would be the second highest hazardous air polluter in the state, and the 20th most polluting in the country.

The Shell plant is permitted to emit 522 tons of volatile organic compounds (VOCs) and 30.5 tons of Hazardous Air Pollutants (HAPs) per year. These chemicals are, according to the USEPA, known to “cause cancer and other serious health impacts.” VOCs for example, are also known to be damaging to lung tissue. The 159 tons of fine particles the plant will release per year will further contribute to respiratory and cardiac diseases in the region.

The people of Southwestern Pennsylvania should feel confident that the air we breathe won’t make us sick. We have the right to live and work in clean, safe and healthy environments. Why are we subsidizing the opposite of this vision, particularly when it undermines national climate goals as well?

The plant is estimated to release 2.2 million tons of carbon-dioxide-equivalent emissions per year: That’s the equivalent of the emissions from 474,000 passenger vehicles, which is more than half the number of vehicles registered in Allegheny County. The plant will also produce plastic resins that will be used to manufacture more single-use plastic goods in a world that already has too much plastic. Today, 36% of plastic production goes toward single-use plastics, specifically plastic packaging.

These are not investments we should be making or celebrating in a region that shows so much promise in going beyond the fossil fuel economy. Further, they are not a proven way to secure long-term jobs or economic growth. Studies show that wind and solar manufacturing would employ more people than comparable investments in oil and gas: More than 15,000 jobs for the same investment that is producing only a few hundred jobs at the Beaver County plant.

Our neighbors in New York State understand this. According to New York’s “Clean Energy Investment Report 2022,” New York added over 24,000 jobs in the renewable energy sector between 2015 and 2021. That’s a growth of 17% after the governor announced a $1.5 bllion investment in clean energy.

New York is continuing these fossil-free investments, and the growth is accelerating. These are not temporary jobs; rather, they are being built on a solid foundation because they are not based on extracting resources that will someday run out, and because they align with the health, climate and overall well-being needs of communities. They are long-term investments, not short-term stopgaps.

Community organizations in the region understand this. Reimagine Beaver County released a vision in 2019 that outlined a more economically viable future than petrochemicals, one made possible by investing in four major sectors of economic development: energy innovation, green chemistry and manufacturing, sustainable agriculture, and riverfront recreation and tourism.

Just think of where our region would be if we had embraced this vision, instead of propping up petrochemicals and fossil fuels.

That’s why the Breathe Project calls for imagining a brighter, healthier and more prosperous future than the one promised by fossil fuels and petrochemicals. This includes building a new workforce with diverse jobs in solar, wind and other clean technologies that will include everyone from blue-collar workers to high-tech researchers. It also includes transitioning to electric cars, buses and trucks; improving bicycle lanes; and providing more public transportation options.

While our policymakers continue to fail us, we’re glad that other leaders have stepped in. We recently appreciated a huge boost from Mike Bloomberg and Bloomberg Philanthropies’ Beyond Petrochemicals campaign that will invest $85 million in new funding for local advocacy groups in these efforts.

As someone who grew up in the Monongahela Valley, I am ready to see economic and environmental optimism for our region, based on a different vision that recognizes that fossil-fuel-based industries are not in Pittsburgh’s best interests, now and into the future. It is time to go in a different direction. Stop throwing good money after bad investments. Stop subsidizing a mature, private industry that casts burdens on our communities while allowing a narrow few to reap large profits at our expense.

Our economic future should not, and will not, be hitched to subsidizing new uses for dirty materials like petrochemicals. We can have healthy people, healthy workers, a healthy economy and a healthy environment. We deserve a bright future.

Matt Mehalik is Executive Director of the Breathe Collaborative and its communication platform, the Breathe Project.

A New, Massive Plastics Plant in Southwest Pennsylvania Barely Registers Among Voters

Environmentalists in Beaver County alarmed by harmful emissions from the plant once it opens say they are discouraged by most voters’ inattention, but not deterred.

By Emma Ricketts

Inside Climate News
November 5, 2022

Photo: Shell’s new petrochemical plant in Beaver County, Pennsylvania. Credit: Emma Ricketts

Environmentalists Fear a Massive New Plastics Plant Near Pittsburgh Will Worsen Pollution and Stimulate Fracking


Oct. 27, 2017 – A New Shell Plant in Pennsylvania Will Soon Become the State’s Second Largest Emitter of Volatile Organic Chemicals


ALIQUIPPA, Pa.—From the tranquility of her garden in Beaver County, Pennsylvania, Terrie Baumgardner worries that her grandchildren will grow up without access to clean air, clean water and a safe space to play outdoors.

For decades, Beaver County’s economy has been dependent on polluting industries—first steel, and more recently natural gas drilling. Many longtime residents, who remember the prosperity brought by the steel industry, have welcomed the construction of a massive new Shell petrochemical plant and the politicians that support it.

Baumgardner and other environmental activists are discouraged that local residents and politicians favor the continuation of fracking and the new mega plastics plant it has spawned, but they are not giving up their fight.

“People say that’s what we do in Beaver County—we trade our health for jobs,” Baumgardner said. “But it’s unfortunate, because it doesn’t have to be that way now.”

A reluctant activist, Baumgardner first became involved in environmental issues in 2011, when she learned about the dangers posed by fracking. Concern for the environment and health of local residents led her to canvas for signatures in 2016 as Shell moved toward building the plastics plant.

Spanning nearly 800 acres along the Ohio River, the plant is expected to open later this year. The facility will convert fracked gas into 1.6 million metric tons of polyethylene per year.

Polyethylene, made from ethane, a form of natural gas, is the key building block in numerous common plastic products—from food wrapping and trash bags to crates and bottles.


Despite assurances from Shell that the facility will be safe for the surrounding community, environmental activists have warned that the plant will cause air and water pollution, and a protracted dependence on fracking.

Under Shell’s permit, the plant can release up to 159 tons of fine particulate matter and 522 tons of volatile organic compounds per year. Exposure to these emissions has been linked to issues in the brain, liver, kidney, heart and lungs. They have also been associated with miscarriages, birth defects and cancer.

“They’re going to unload all of these toxic chemicals, hazardous air pollutants, volatile organic compounds and millions of tons of CO2 gas. What’s going to happen?” asked Bob Schmetzer, a local councilman from nearby South Heights and a long-time spokesperson for Beaver County’s Marcellus Awareness Committee. He has opposed the plant since it was first proposed 10 years ago.

Jack Manning, a Beaver County Commissioner, does not share these concerns. “I have great faith in the technology and in the competency of those that will be running the facility,” he said. “It’s a state-of-the-art, world-class facility.”

Manning blamed people’s apprehension on unfair comparisons between the environmental impacts of the plant and those of the steel mills that used to occupy the area. “Those heavy particulates are a different type of pollution,” he said.

Shell has assured residents of the safety of its plant. “At Shell, safety is our top priority in all we do and that includes being a good neighbor by communicating about plant activities that could cause concern if not expected,” Virginia Sanchez, a Shell spokesperson, said in a statement. “When we are in steady operations, it is our goal to have little to no negative impact on our neighbors as a result of our activities.”

For activists, these assurances do little to allay concerns. On a grassy hillside overlooking the massive complex, Schmetzer spoke with his friend and fellow activist, Carl Davidson. While the plant is not yet operational, the grinding sounds of industrial machinery and screeches of train cars disturbed the clear fall day.

Photo: Bob Schmetzer and Carl Davidson, standing above the petrochemical plant. Credit: Emma Ricketts


Davidson, a self-professed “solar, wind and thermal guy,” wore a Bernie cap and alluded to his youth as a student leader of the New Left movement in the 1960s. While he estimates that around one-third of residents were concerned about the plant’s potential impacts from the beginning, he expects this number to grow once it opens. “People are starting to see two things,” he said. “Number one, there is all kinds of pollution that they didn’t know about. And second, all the jobs that were promised aren’t real.”

The plant sparked hope for a revival of economic prosperity in the area. However, now that construction is largely complete and thousands of workers have finished working on the site, the plant is expected to only employ about 600 people going forward, according to Shell.

While opponents wait anxiously for the plant to begin operations, they don’t think it will influence next week’s elections. The Shell plant has been a non-issue in the tight race for the 17th Congressional District in Beaver County between Democrat Chris Delluzio and Republican Jeremy Shaffer, both of whom support continued fracking.

In the state’s closely watched U.S. Senate race between Democrat John Fetterman and Republican Mehmet Oz, both of whom support fracking, the environment has barely come up in a nasty campaign focused on abortion rights.

Similarly, fracking and the environment have hardly been mentioned in the governor’s race between Democrat Josh Shapiro, the state’s attorney general, and Republican state Sen. Doug Mastriano, a Trump supporter and election denier.

Beaver County, while only counting for 1.3 percent of the votes cast in any given election in Pennsylvania, is a bellwether, according to Professor Lara Putman of the University of Pittsburgh. “It is socio-demographically similar to counties that, collectively, make up about one-quarter of Pennsylvania’s population. So in that sense, when Beaver shifts other places are usually shifting as well,” she said.

Baumgardner called the political candidates’ silence “disheartening.”

“I wish they would have the courage to speak up, to take a position and stick with it,” she said.

However, she understands the political risks associated with taking an environmental stand in a community that believes its economic fortunes are tied directly to pollution. She just wishes this wasn’t still the case. “We have alternatives,” she said. “We just need our political leaders to embrace them and get serious about renewables and removing the subsidies on fossil fuels.”


According to Davidson, the key to awakening the public is to ensure that alternatives are tangible. Good ideas aren’t enough to make people give up the job opportunities they have, he said. Clean energy projects are great in theory, but until workers can see a real job with similar wages, many will continue to support the status quo.

Progress might be slow, but Baumgardner, Davidson and Schmetzer remain hopeful that the realities of the plant will sway public opinion once residents’ senses are assaulted with the acrid smells and cacophony of relentless sound they expect the new plastics plant will emit. They each stand ready to educate people on its health and environmental impacts, as soon they are ready to listen. They may be discouraged, but are not deterred.

“Nothing is going to shut me down as long as my grandkids are here,” Baumgardner said.


Emma Ricketts is a graduate student at Northwestern University’s Medill School of Journalism. She focuses on politics, policy and foreign affairs reporting, with a particular interest in climate change and environmental issues. Previously, Emma practiced as a lawyer in a New Zealand-based commercial litigation team where she focused on climate-related risk.

Covid19 and Unions in Beaver County

Covid19 forced Shell to focus on workers’ health &safety at its construction site in Beaver County.

By Randy Shannon
Beaver County Blue

For months 8,000 workers were laboring, eating, and bus riding in close quarters. Some local construction workers said it was the safest cleanest site they had known. When Covid19 came around construction workers were worried but they couldn’t say anything. When a few cases showed up in Beaver County including one at Eaton Corp and one at Anchor-Hocking, then family members – spouses – decided the money Shell paid wasn’t worth risking the lives of their families.

Tina Shannon, the leader of Progressive Democrats of America starting receiving a few messages from people she knows, who had significant others working at Shell. They were concerned that the filth and the packed lunch rooms and buses would spread the virus.

The next day Tina posted a Call-In Day Event Page on Facebook and a massive email, asking people to call the County Commissioners and tell them to demand Shell shut down the construction site. As she publicized the Event, she got a lot of positive feedback. One local union friend did, however, respond by suggesting that her demand would “rob thousands of employees and their families of a living.”

Tina’s response, on March 18th, was: “Drawing everyone from throughout the County into this one place is a recipe of how to spread a virus. This is unconscionable. Take a look at Italy and then compare our very conservative numbers. We’re going to have to have federal legislation to give people income to get through this.”

In two days local folks, including people in Pittsburgh (located downwind) had bombed the County Commissioners with phone calls. The third day the County Commissioners held a press conference announcing that they wanted Shell to shut down construction immediately to prevent spread of Covid19. On March 18th Shell announced it was closing while claiming that it was safe and clean. Continue reading Covid19 and Unions in Beaver County

Jessica Benham Endorsed by Pittsburgh Trades Union

Jessica Benham - PHOTO: COURTESY THE CAMPAIGN

Photo: courtesy the campaign: Jessica Benham

Following Democratic committee snub

Pittsburgh City Paper

Disability-rights advocate Jessica Benham (D-South Side) has been running for Pennsylvania state House District 36 for several months and picked up a number of Democratic endorsements along the way, including Pittsburgh City Council President Theresa Kail Smith (D-West End) and state Sen. Lindsey Williams (D-West View).

But on Sunday, the Allegheny County Democratic Committee (ACDC) endorsed Benham’s opponent Heather Kass (D-Carrick) despite Kass’ past social media posts where she praised Donald Trump, decried the Affordable Care Act, and shared a far-right meme about Hillary Clinton.

The Allegheny-Fayette Labor Council issued a rebuke of the ACDC endorsement of Kass, saying, “There is no room — in the labor movement or in the Democratic party — for someone who trashes the Affordable Care Act and pushes propaganda from right-wing think tanks that exist to attack unions, hurt workers, and help corporate interests.”

WESA reported that AFLC didn’t endorse any candidate, but that Benham came closest to the threshold of votes needed to get the labor council’s endorsement.

Today, a local union that sits within the AFLC has announced it is endorsing Benham in the District 36 race.

Operating Engineers Local 66 is backing Benham and Local 66 business manager Jim Kunz says in a press release that Benham “will be an advocate for our workers and for family-sustaining union jobs in the natural gas industry, ensuring that our members will have a voice in conversations about jobs and the environment.”

OE Local 66 represents more than 7,900 members in 33 Western Pennsylvania counties as well as three counties in Ohio. Members complete construction and other work for contractors, private businesses, and municipalities. OE Local 66 members are currently working on the ethane cracker plant in Beaver County and a power plant in Lawrence County.

“In my ongoing conversations with them, we have discussed the necessity of a public policy that protects our environment without leaving workers behind,” said Benham in a press release.

“When I talk about clean air and water, I want to center everyone who is impacted.”

Benham says she looks forward to working with unions, community members, and environmental advocates to move the region toward a sustainable energy future.

Continue reading Jessica Benham Endorsed by Pittsburgh Trades Union

Fracking-Well Blast 60 Miles From Pittsburgh Leaked More Methane Than Some Countries Emit In a Year

By Ryan Deto
Pittsburgh City Paper

Dec 17, 2019 – In 2018, a natural-gas well exploded near Powhatan Point in Ohio, a small town that sits along the Ohio River, just 60 miles from Pittsburgh as the crow flies. The fracking well was owned and operated by a subsidiary of oil giant Exxon.

According to a study published yesterday in the Proceedings of the National Academy of Sciences, this single explosion emitted a gargantuan amount of methane into the atmosphere. Over the 20 days it took for Exxon to plug the well, more than 57,000 metric tons of methane was released, at a rate of about 120 metric tons of methane per hour.

This figure, from one well in less than three weeks, eclipsed the annual amount of methane that is emitted by the oil and gas industries of France, Norway, and the Netherlands combined. The Ohio blast is now the largest known methane leak on record in the U.S. and was twice as large as the previous largest leak that occurred at an oil and gas storage facility in California in 2015.

@NaomiAKlein: Terrifying story about a blowout in Ohio that released “as much methane as the entire oil and gas industries of some nations release in a year.” EDF – which has aggressively pushed NatGas as a “bridge fuel” – explains that this could be happening every day https://nyti.ms/34tdR7f

The findings mark a step forward in using space technology to detect leaks of methane, a potent greenhouse gas, from oil and gas sites worldwide.

Methane is an extremely powerful greenhouse gas. Studies vary, but methane is generally considered to be between 25-84 times more potent of a greenhouse gas than carbon dioxide.

The study determined the scope of the leak using satellite technology, and the authors praised the mapping system to reveal just how damaging the incident was in terms of how much greenhouse gas was emitted. Continue reading Fracking-Well Blast 60 Miles From Pittsburgh Leaked More Methane Than Some Countries Emit In a Year

Pennsylvania Is Ready For A Just, Clean-Energy Future

By Colleen Kennedy
OurFuture.org

Oct 7, 2019 – Pennsylvania is ready for a just, clean-energy future. Ever since 1859, when Edwin Drake ushered in the modern era’s addiction to fossil fuels when he struck “rock oil” in Titusville, our state has been at the front lines of the extraction industry’s booms and busts. We are way past ready for a Just Transition to renewable sources of energy and a sustainable future for us all.

For a century and a half, we’ve watched corporations pull poisons from the ground, then leave the health and safety of our communities in ruins as they move on with all the riches. From poisoned rural waterways to the nearly catastrophic explosion at a South Philadelphia oil refinery earlier this year, no part of the state has been left unscathed. But even after a century and a half, the extraction industry still thinks the people of Pennsylvania can be fooled by its false narrative. We won’t.

Rose Tennent, a longtime conservative pundit and surrogate for the Trump campaign, now leads this unholy choir in Pennsylvania. She recently penned an op-ed decrying Senator Elizabeth Warren’s proposal to ban fracking entirely under her presidency.

Presumptuously claiming to speak for all Pennsylvanians, Tennent argues Warren’s proposal will kill the “desirable” jobs that have accumulated in the state as a result of the fracking industry, which she irresponsibly calls “responsible.”

Let’s talk jobs first – because the statistical data Tennent relies on is grossly inaccurate. She overstates the positive impact the fracking industry has had on communities.

Speaker Mike Turzai, Tennent’s extraction-loving wing man in the Pennsylvania House of Representatives, doesn’t even bother to remove industry emblems from the handouts he uses to promote fracking. Like Tennent, he touts the number of jobs he says fracking has created in the state. But we need to look beyond this headline to get to the truth. Continue reading Pennsylvania Is Ready For A Just, Clean-Energy Future

Investigation: Cracker Plant Will bring Jobs, Pollution

Some medical experts said breathing will be much harder once plant is up and running

By Paul Van Osdol
WTAE Investigative Reporter

May 9. 2019 – MONACA, Pa. — The massive ethane cracker plant in Beaver County is bringing thousands of jobs to Western Pennsylvania.

But Action News Investigates has learned it may also bring thousands of tons of air pollutants to a region that already has some of the nation’s dirtiest air.

At the cracker plant site, dozens of cranes soar into the sky as thousands of construction workers assemble the petrochemical facility that will convert natural gas liquids into plastics.

The project has breathed new life into what was an industrial wasteland.

But some medical experts who are also environmental advocates said breathing will be much harder once the plant is up and running.

“To me it’s about breathing. It’s about health,” said Dr. Ned Ketyer, a retired pediatrician affiliated with Pitt’s Climate and Global Change Center.

He said the plant’s toxic fumes will affect health as far south as Pittsburgh.

“Allegheny County is already dealing with higher risks of cancer because of air pollution and I believe this is going to make things much worse,” Ketyer said.

Volatile organic compounds, or VOCs, are a major industrial pollutant. Environmental Protection Agency records show the industrial plant with the largest VOC emissions in Western Pennsylvania is the Clairton Coke Works, with 291 tons of VOCs in 2014, the most recent year available.

But the cracker plant’s state permit says it is allowed up to 522 tons of VOCs per year.

Ammonia is another air toxin.

“That can have immediate effects on the brain and the liver,” Ketyer said.

EPA records show the Coke Works and U.S. Steel’s Edgar Thomson Works in Braddock combined emitted 139 tons of ammonia in 2014.

But the cracker plant’s permit allows for even more — 152 tons. Continue reading Investigation: Cracker Plant Will bring Jobs, Pollution

Industry Officials, Protesters Confront Appalachia’s Future as a Possible Petrochemical Hub

Protestors outside the Marcellus and Manufacturing Development Conference in Morgantown, West Virginia on April 9, 2019. (Photo by Kat Procyk/PublicSource)

By Oliver Morrison

PublicSource.org

April 10, 2019 – Attendees at an industry conference in West Virginia on Tuesday cheered projections for increased petrochemical production in the next 40 years, while protesters outside held up withered single-use plastic bags to show the environmental harm of petroleum products.

Both groups, however, shared a common view that the economic hype and resulting environmental impact predicted for the region may not pan out. It’s how they feel about the prospect that diverges.

The Ohio River Valley region is projected to be on the brink of a petrochemical boom adding to its already booming natural gas industry: Production of ethane, which is used to make plastics, is expected to quadruple by 2025, according to a presentation by Brian Anderson, the director of the National Energy Technology Center at the U.S. Department of Energy.

Several top industry executives and analysts at the Marcellus and Manufacturing Development Conference in Morgantown spoke about the rare opportunity to create 100,000 jobs, an industry estimate, and bring billions of dollars in economic growth to the region, which includes Pennsylvania, West Virginia and Ohio.

“This is the chance of a lifetime to create a generational change for the region,” said Michael Graney, executive director of the West Virginia Development Office.

But the mood at the conference was not always celebratory. Several speakers focused on the urgent need to continue to sell the Appalachian region’s potential to the rest of the world. Continue reading Industry Officials, Protesters Confront Appalachia’s Future as a Possible Petrochemical Hub

Opposition Growing Against Natural Gas Pipeline To Supply Beaver County Cracker Plant

Dec 3, 2018 – BEAVER, PA. (KDKA) — Some pipelines in the region have ruptured, causing massive explosions. Others under construction, like the Mariner East pipeline, have been slapped with hundreds of violations for spills.

Now, opposition is growing for another pipeline to supply the cracker plant in Beaver County.

With the sprawling $6 billion plant under construction on the banks of the Ohio River, Shell Oil promises to bring thousands of jobs and economic vitality back to the county.

The mammoth plant also, however, brings safety and environmental concerns, including the proposed pipeline that will bring it natural gas.

“There’s never been a pipeline that never leaked. That’s a fact. Every pipeline leaks sooner or later, and some of them, as we just saw in Center Township, they explode,” Bob Schmetzer, of Aliquppa, said.

New natural gas pipelines are criss-crossing the state, and the Energy Transfer Company gas line exploded less than a week into its operation. The fact that the explosion was caused by shifting ground doesn’t inspire confidence in homeowners like Rachel Meyer.

“We certainly know that this past year with the rains, we’ve seen a lot of landslides, and it looks like that was the reason that that happened. So, you know, it’s scary that there wasn’t more preparation and understanding that that could have been something that would happen,” Meyer said.

The cracker plant will need a continual supply of ethane gas to crack or transform into plastics. Shell is proposing the two-legged, 97-mile Falcon Pipeline to bring the gas from Washington County, Ohio and West Virginia.

But it will need to cross streams and wetlands like the Beaver County Conservation District and the headwaters and water line of the Ambridge reservoir that supplies more than 6 million gallons of water per day to people in Allegheny and Beaver counties.

Residents like Bob Schmetzer worry about pollution and spills contaminating the water supply.

“This needs another route. Stay out of the watershed. Take it around. Do what you have to do, but don’t come through here and jeopardize 100,000 people and a whole economy,” he said.

For its part, Shell says it has spent two years working with landowners and engineers to put establish pipeline route, taking into account environmental concerns and planning safeguards for streams and water sources.

In a statement, the company said: “Shell executed numerous environmental studies and intends to take other steps to avoid or minimize any potential environmental impacts that could arise as a result of construction and operation of the Falcon Pipeline. Protecting the environment and ensuring the safety of communities where we operate is Shell’s top priority.”

Still, the Ambridge Water Authority opposes the route and the state Department of Environmental Protection has sent the oil giant a “technical deficiency letter” withholding construction permits at this time.

The cracker plant is already employing thousands of construction workers and promises to be an economic boon to Beaver County, but folks in the region say that should not come at the expense of the environment or their safety.

Continue reading Opposition Growing Against Natural Gas Pipeline To Supply Beaver County Cracker Plant

We Are the Only Oil-and-Gas State Not Taxing Drilling

Strapped for cash, Pennsylvania may finally grant the governor a victory and enact a severance tax. But it’s an uphill battle.
Governing Magazine
DECEMBER 2017 – Hydraulic fracking has “brought back great-paying jobs,” says Steve Miskin, spokesman for Pennsylvania House Speaker Mike Turzai. (AP Photo/Ralph Wilson, File)

If your state is the only oil and gas producer in the nation that doesn’t have a severance tax, there’s going to be a lot of pressure on you to enact one. But given the amount of money involved, it’s easier to talk about creating such a tax than actually imposing it. In Pennsylvania, that talk has blossomed into a fight over more than just money; it now involves lobbying, environmental protection and the next campaign for governor.

Pennsylvania became the first place in the world to successfully drill for oil back in the 1850s. Over the past decade, however, natural gas has overtaken oil as the big game in the state. Pennsylvania is now the nation’s second-leading producer of natural gas, after Texas. Naturally, lawmakers are wary of tampering with the golden goose. “Right now, you have an industry that’s growing and not asking for state dollars, like others,” says Steve Miskin, a spokesman for state House Speaker Mike Turzai. “It has brought back great-paying jobs.”

The industry has spent more than $60 million on lobbying and campaign donations in the state over the past decade to ward off a severance tax on its profits. Industry officials like to point out that, even in the absence of a severance tax, Pennsylvania’s general business tax rates are often higher than those in other production states — notably Texas, which doesn’t tax corporate income. What’s more, Pennsylvania five years ago imposed an impact fee on drillers, which generated $173 million last year. “The comparison with other states shouldn’t stop and start just with the severance tax,” says Kevin Sunday, chief lobbyist with the Pennsylvania Chamber of Business and Industry. “We have to look at the whole structure.”

But no one disputes that fiscally challenged Pennsylvania could use the money a severance tax would bring in — easily as much as $100 million a year. So quite a few legislators are determined to pass one. The state Senate actually approved a severance tax earlier this year.

It’s been a tough sell in the House, though, and not only because Turzai and other Republicans are largely opposed. State Rep. Greg Vitali, a Democrat who became the first legislator to propose a severance tax nearly a decade ago, came out against the Senate package, arguing it would also loosen state control of drilling permits and weaken environmental protection. “I find myself in the odd position during these budget negotiations to suddenly be opposing it,” he says. “The passage of a severance tax now is linked to some very bad provisions that in my view would cripple the Department of Environmental Protection’s ability to do its job.”

Meanwhile, the severance tax has become a sensitive campaign issue. A leaked tape captured Republican state Sen. Scott Wagner, a likely gubernatorial candidate next year, predicting that passage of the tax would guarantee a second term for Democratic Gov. Tom Wolf, a leading severance tax advocate, because he’d have a big victory to tout.

The specter of handing Wolf a win has become the final and perhaps the biggest hurdle for the severance tax to overcome. “Both the Democrats and the Republicans,” Vitali says, “are viewing the severance tax through the lens of the gubernatorial election.”