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WInTeR 2014 | VOl. 4 | ISSue 1

SUStAiNABlE

REVOLUTION

A rise for wind energy in Pennsylvania // Page 16

Fall 2013 | VOl. 3 | ISSue 4

4 // export terminals bring promise for international clout

PUBLISHER’S NotE

Shipping ports could see 16 billion cubic feet of gas leave the U.S. per day.

t

wirling high above Pennsylvania’s mountain tops, wind turbines crank out enough energy to power hundreds of thousands of homes and businesses. technology is improving to make wind farms more productive and more profitable. // Realistically, we might see wind power fill only 2 percent of Pennsylvania’s electricity needs in the next five years. Considering that ten years ago wind energy was merely a whisper in the state, that 2 percent is significant and double its current output. Experts say by 2025 we may see as much as 14 or 15 percent of our energy made from wind as the industry strives to keep up with state and federal demands. // At the NEPA Energy Journal, we were intrigued enough with the whimsical and more frequently appearing windmills spinning on the horizon, so we took a hard look at the likelihood they will continue to turn in Pennsylvania.

16 // Change is on the wind

Windmill prevalence in Pennsylvania is expected to double in the next five years.

OUR tEAm eXeCuTIVe eDITOR George Spohr PROJeCT eDITOR Dan Burnett RePORTeRS Jon o’Connell | Steve mocarsky DeSIGneRS Amanda Dittmar | tina murdock PHOTOGRaPHeR Amanda Dittmar aDVeRTISInG eXeCuTIVe trish Roe 570-970-7361 | proe@civitasmedia.com

2 // NEPA Energy Journal

19 // meet Jake Padula

Rain or shine, this guy keeps the wells in line.

13 // On jobs and the environment

Guest opinion by Gov. tom Corbett

14 // Shale news 24 // Tax now for future problems

Guest commentary | Dr. michael macDowell

25 // Taxes won’t fix everything

Guest commentary | Dr. thomas Jiunta

27 // Preview: 2014 gubernatorial race 30 // Supreme Court strikes down parts of act 13

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10/3/13 10:01 AM Sustainable Revolution // 3

If it fits, it ships JOn O’COnnell | JoCoNNEll@CivitASmEDiA.Com

T

he United States lost its “major global exporter” status more than 30 years ago when steel production stymied and the country started importing more of its raw materials than shipping them.

For the most part, we’ve settled to exporting mostly information via tech-types in Silicon Valley.

But 27 permit applications for liquefied natural gas export terminals hover in limbo.

They are poised to return the United States to or near its

4 // NEPA Energy Journal

previous status — and garner significant geopolitical bargaining leverage.

The natural-gas reserves below the Marcellus Shale region have umpteenth-generation Saudi sheiks quivering that we may soon surpass them in annual production.

But Saudi Arabia can play a stronger hand when it comes to selling its fuel to the highest bidder. The Middle East country has export terminals, seaports where natural gas is chilled to minus 260 degrees

Fahrenheit at which point it becomes liquid. Pressurized and pumped into tanks in enormous ships, the gas is carted across the ocean where it again becomes gas upon delivery.

Several other countries — like Britain, Australia and Russia — also export LNG. The United States had one export terminal in Kenai, Ala., which exported gas to Japan, but the permit for the terminal, run by Phillips Alaska Natural Gas and Marathon Oil, expired in 2011.

The U.S. Department of

Energy has granted one permit for the LNG processing company, Cheniere Energy in Houston, Texas, to build one export terminal in Cameron Parish, La. Twenty-six others are under review as federal officials decide how many companies should be allowed to sell LNG to countries that do not have free-trade agreements with the United States.

The Federal Energy Regulatory Commission, FERC, which is a division of the DOE, has the power to hold up appli-

The Department of Energy and Federal Energy Regulatory Commission have yet to give international sale of natural gas their full vote of confidence

large ocean liners stand to be the greatest expense for corporations looking to export natural gas that has been converted to liquid, much of which could come from the marcellus Shale region.

cations at will, which seems to be the case. FERC regulates the national and international transmission of energy.

Of the 27 permits, those in the gas biz predict only a handful will ever ship liquid gas.

The reason: It’s grossly expensive to get these terminals approved. Cheniere spent $220 million just to slough through the FERC application process, according to Erica Bowman, vice president and chief economist for America’s Natural Gas Alliance, ANGA.

After that, it costs between $6 billion and $10 billion to construct the liquefying apparatus and to build the gas-carrying ocean liners.

Despite these towering obstacles, Chenerie plans to have its Louisiana terminal online by the end of 2015.

WHaT’S aT STaKe There’s an urgency among export companies to push through applications and start construction.

“A big reason for why its so

important for DOE to act fast, there is a window of opportunity here. We’ll be in the game, but if we wait too long, we’ll be out of it,” Bowman said.

China could prove to be a major importer of U.S. LNG, Bowman said, but our timeline is limited.

Vast reserves of natural gas have been found in Chinese shale formations; however, the country lacks the technology and infrastructure to get it out of the ground.

But certainly, that circum-

stance won’t last forever, and export contracts with China could lock down a steady customer even after the country’s reserves are tapped.

Russia is right next door to China. It could offer to build pipelines into China, which would sever chances for the U.S. to sell gas there.

The ability for the United States to leverage natural gas export could bode well when it comes to making deals on the international front.

See SHIP, PaGe 8

Sustainable Revolution // 5

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Sustainable Revolution // 7

Ship from page 5 “Think about the benefits you gain by exporting gas to the rest of the world, even outside the jobs,” Bowman said. “You’re also gaining a lot of geopolitical maneuvering that you didn’t have before. It’s something that we haven’t done as a country in 30 to 40 years.”

With lower labor prices, export terminals in Qatar can effectively ship off LNG for about $1 per 1,000 cubic feet (Mcf). The United States can produce LNG for about $3 per Mcf. Qatar could easily decide to ramp up production and sell the same product at a lower price, stifling the U.S’ chance of breaking into the market, Bowman said.

THe PRICe DRIVeR Since December 2012, the going rate for one Mcf has hovered around $4.30, a mere shadow of the $12 per Mcf in 2007 when natural-gas development boomed in Pennsylvania.

While gas-drilling companies now shiver at the low market price — low prices mean a higher percentage of the profit margin has to be used for overhead — consumers have seen their gas prices go down slightly since the United States started relying on domestic gas for residential heating and manufacturing.

Many fear if our gas hits the international market, the domestic price will rise.

Without export terminals, we get to keep it all to ourselves, right?

A study commissioned by the Energy Department and completed

by ICF International shows breaking into the global market could drive up the national price by $0.32 to $1.02 depending on daily exports, with the lowest price impact occurring if we export 4 Bcf per day and the highest striking at 16 Bcf per day.

Totaled together, the LNG export applications now under review total more than a collective 30 Bcf in liquefied natural gas leaving the country per day.

But Bowman said LNG export is just like any other natural gas consumer.

Whether manufacturers start buying more for plastics production, power plants convert to natural-gas generators or more homes make the switch to natural gas for heat, the price of natural gas could rise as production lags behind.

“There’s not something special about LNG exports that would make that increase,” Bowman said. “Anything could make it go up.” n

8 // NEPA Energy Journal

“You’re also gaining a lot of geopolitical maneuvering that you didn’t have before. it’s something that we haven’t done as a country in 30 to 40 years.”

-erica Bowman Chief economist, anGa

lnG tankers could haul up to 16 billion cubic feet daily out of u.S. export terminals; however, the lengthy and expensive permitting process through the Department of energy and its Federal energy Regulatory Commission is holding up any of these terminals from being built.

Sustainable Revolution // 9

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12 // NEPA Energy Journal

Protecting our environment Growing our economy In 1859, Colonel Edwin Drake struck gold — black gold — when he drilled the first successful commercial oil well in Titusville, Crawford County.

We soon became the energy Guest Opinion capital of the nation.

Gov. Tom Corbett Pennsylvania was off and running, powering an industrial revolution that created a new middle class, raised the quality of life for tens of millions of people and changed the world forever.

Today, thanks to abundant natural resources right here in Pennsylvania, we stand on the verge of a new energy revolution. Pennsylvania is home to vast quantities of natural gas nestled deep underSustainable ground, in formations like theRevolution Marcellus// Shale. Experts estimate there are nearly 500 trillion cubic feet of natural gas beneath our feet — enough to power our homes, facto-

We are committed to protecting and restoring our environment and precious natural resources, respecting the communities where shale development is occurring, and providing the financial resources to make sure that county and municipal governments have the tools they need to do their job.

— Gov. Tom Corbett ries and vehicles for more than a hundred years. More than 240,000 Pennsylvanians work in our oil and gas industries and in jobs made more secure by its activity, in family sustaining jobs that pay as much as $30,000 more than the average state wage.

We’re marching toward energy independence, becoming a net exporter of natural gas for the first time in 100 years. We’re making the air cleaner in our towns and cities. And we’re saving Pennsylvanians — all Pennsylvanians — nearly $1,200 a year or more in lower natural gas and electricity prices thanks to lower-cost natural gas. We didn’t create this opportunity — but we are poised to seize it.

That wasn’t the case in 1859. Towns sprang up almost overnight, including helter-skelter arrangements such as Pithole City in Venango County. It had 54 hotels, its own daily newspaper and the thirdbusiest post office in the state. Today, it’s a tumble of brick foundations and overgrown streets — a testament to an earlier generation’s failure to ask a simple question: “What next?”

Things are a bit different this time 13 around. We have learned some valuable lessons over the past 150 years. It’s not enough to simply pull the resource from the ground. We need to build industries around it — right here in Pennsylvania. Just as natural gas is a fuel, we need to make that industry a fuel for the engine of a wider manufacturing economy.

We’re also going to ensure that protection of our environment and respect for our local communities are our highest priorities. Abundant gas means nothing if we do not have clean water, clean air and safe communities. After all, these are our local communities, and it’s our air and water.

That’s why I partnered with Democratic and Republican members of the General Assembly, along with environmental, conservation, local government organizations and others in passing Act 13 of 2012, the most comprehensive enhancement of our environmental law in nearly three decades.

Our goals were clear: seize this opportunity, in a manner that protects the environment and public health; grows jobs; reduces our dependency on foreign energy; and prepares our young people for the jobs of today and tomorrow.

Act 13 contains significant new environmental safeguards, including drilling distance setbacks from streams, water wells, and buildings; increased well bonding to make sure wells are properly closed down

Submitted photo

Gov. Tom Corbett was the keynote speaker for the 2012 Shale Insight conference held at the Philadelphia Convention Center in downtown Philadelphia. He told the audience about his administration goals to provide a job in Pennsylvania for every person who wants one and outlined his vision for Pennsylvania to be a leader in energy production into the future.

in the future; increased notice of permit applications; and increased transparency of inspections, violations and penalties. We also adopted the most advanced hydraulic fracturing disclosure law in the nation.

And we worked in partnership to craft a fair impact fee, generating money for county and municipal governments to help address the unmet needs identified through the deliberations of my Marcellus Shale Advisory Commission. I was adamant that these dollars go back to the communities where they were needed. County and municipal officials told us what they needed, and we listened. Over $10 million to date has flowed directly to northeastern Pennsylvania counties. Other competitive grants are providing opportunities for vehicle fleets to convert to home-grown natural gas, like recycling trucks in Luzerne County, or funding baseline water quality tests in places like Wayne County.

From Susquehanna, Bradford and Wyoming counties, to Washington, Greene and Fayette counties, more than 7,000 wells have been drilled in nearly 40 counties, covering nearly two-thirds of our state’s geogSee CORBETT, Page 18

SHALE NEWS

WASHINGTON, D.C. Industry contributions to congressional campaigns growing In a November report, Citizens for Responsibility and Ethics in Washington (CREW) detailed how congressional candidates are benefiting from companies operating hydraulically fractured wells and trade associations supporting the fracking industry.

In the report, “Natural Cash: How the Fracking Industry Fuels Congress,” CREW — using federal campaign contribution

data tracked by MapLight — found contributions from the industry to House and Senate candidates from districts and states home to fracking activity rose by 231 percent between the 2004 and 2012 election cycles, from approximately $2.1 million to $6.9 million.

In contrast, industry contributions to candidates from nonfracking districts rose by 131 percent, from approximately $2.2 million to $5.1 million, over the same time period.

“Like many industries under increasing scrutiny, the frack-

ing industry has responded by ratcheting up campaign donations to help make new friends in Congress,” said CREW Executive Director Melanie Sloan. “As CREW’s report shows, the fracking boom isn’t just good for the industry, but also for congressional candidates in fracking districts.”

The steady increases in federal campaign contributions from the fracking industry correlate with the intensifying debate over whether the federal government should have more oversight of the industry. For example, the biggest increase in industry contributions — nearly 41 percent between the 2010 and 2012 election cycles — came at a time when Congress was actively debating fracking.

The top 10 recipients of

fracking industry contributions are a mix of strong industry supporters and Republican leadership. Rep. Joe Barton, R-Texas, chairman emeritus of the House Committee on Energy and Commerce, received the most contributions, raking in $509,447 between the 2004 and 2012 election cycles — over $100,000 more than the next closest recipient, Senate Minority Leader Mitch McConnell, R-Ky., who received $384,700. While serving as chairman of the committee, Barton sponsored the Energy Policy Act of 2005, which exempted fracking from the Safe Drinking Water Act. Overall, nearly 80 percent of fracking industry contributions went to Republican congressional candidates.

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14 // NEPA Energy Journal

HARRISBURG

$5.2 million from impact fee to aid mine drainage cleanup The Commonwealth Financing Authority approved $5.2 million in funding to support 12 abandoned mine drainage abatement and treatment projects in Pennsylvania using funds from Marcellus Legacy Fund programs.

“We established these programs to ensure a portion of the funds collected goes back to local communities to support environmental enhancement and conservation programs,” Gov. Tom Corbett said.

The Abandoned Mine Drainage Abatement and Treatment program addresses mine-drainage treatment, new mine-drainage site remediation and the repair of existing project sites.

The 12 approved abatement and treatment projects are in Allegheny, Bedford, Blair, Butler, Centre, Clarion, Clearfield, Clinton, Elk, Jefferson, Indiana, Northumberland, Schuylkill, Somerset, Venango, Tioga and Westmoreland counties.

Act 13, signed into law in 2012, authorized counties to impose an impact fee on unconventional natural-gas wells.

The fee has generated more than $400 million. The majority of the revenues are distributed to local governments where drilling is taking place, with the remainder used for statewide initiatives.

The programs are administered jointly by the Department of Community and Economic Development, the Department

of Conservation and Natural Resources and the Department of Environmental Protection, with oversight from the Commonwealth Financing Authority.

SCRANTON

State awards 33 Alternative Fuel Incentive Grants The Corbett Administration has awarded more than $3 million in Alternative Fuel Incentive Grants (AFIG) to 33 companies, counties and organizations making the switch to compressed natural gas, liquefied natural gas, or propane for medium to light-weight fleet vehicles.

“This funding makes it possible for many commercial, county and non-profit groups to convert their lighterweight vehicles to natural gas

or other alternative fuels,” Department of Environmental Protection Secretary Chris Abruzzo said.

The awarded AFIG grants will help pay for the conversion or purchase of 351 natural gas vehicles and 337 propane vehicles weighing less than 14,000 pounds. An estimated 15 new fueling stations and 30 existing stations will be supported by these vehicles.

AFIG grants are an annual solicitation, providing financial incentive for a variety of transportation projects with the result of reducing air emissions in Pennsylvania. Last year, AFIG grants focused on medium to light-weight vehicles. DEP will announce the focus of the next round of grants when it opens, which is expected in early 2014. n

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Amanda Dittmar | NEPA Energy Journal

Turbines like these produce one to two megawatts per day, depending on wind consistency. Windmills in Pennsylvania are generally most productive at night when the wind blows more steadily.

16 // NEPA Energy Journal

CHANGE iS oN

tHE WIND JOn O’COnnell | JoCoNNEll@CivitASmEDiA.Com

P

ennsylvania ranks 15th in a race to be powered by renewable energy.

With a little more than 1 percent of its electricity coming from wind turbines, Pennsylvania trails far behind larger, flatter states like California and Texas, where wind energy powers more than 2.1 million and 3.3 million homes respectively.

While the larger states produce more electricity with wind, Iowa leads the charge with often more than 25 percent of its population receiving electricity from turbines, depending on wind consistency. Texas wind farms supply their denizens with a little more than 8 percent of the state’s power demand.

About 390,000 Pennsylvania homes are powered with wind energy, according to the environmental group PennFuture, but experts predict the number could double in five years. The state’s abundance of mountain tops make it a fair match for the power source that many are eyeing as a champion for the future of renewable energy.

TImInG anD TOPOGRaPHy

Winter is the season of choice for Pennsylvania wind farms.

Heavier, more consistent air flow keeps the mountain-top pinwheels pushing out constant currents of electricity.

There are some, however, who say that wind energy is a distraction from finding true sustainable energy.

Lisa Linowes, director of the WindAction Group, said that the ultimate renewable energy generator probably has not been invented yet, but she does not believe wind is part of the solution.

“Wind is too big, it produces too little and at the wrong time,” Linowes said. “The time it does produce is largely at night, which is when we least need the energy. Our first step is to go to much more natural gas. That alone has reduced our carbon footprint in the United States.”

aS THe TuRBIneS TuRn

On a gusty day in December, all but one of the Bald Mountain Wind Farm’s 12 windmills in Bear Creek Township swooped with lazy consistency.

A winter storm had coated one turbine with ice and Brandon Nehring, the farm’s manager, turned out the blades to be perpendicular with the wind, stopping movement completely.

Nehring had shut down the turbine until it shed the ice to protect the apparatus and his four employees.

But the company he works for, Infigen, loses money when the blades aren’t spinning. Though Nehring has the final say, it doesn’t stop the daily, sometimes hourly calls from Infigen’s Texas headquarters asking why the turbines are not running at full capacity.

Nehring pointed to a chalk board on the field office wall and grinned. Scrawled across the board a message reads: “This site has been accident free for 2,759 days,” a statistic for which Nehring will take some heat to preserve.

Chunks of ice the size of cinder blocks lay below one turbine that had returned to service after the storm. Nehring approached cautiously, scanning each 140-foot fiberglass blade carefully for remaining ice. Turbines are never approached until the blades are clear, Nehring said.

With the hub at about 300 feet in the air, the spinning blades consume space a little larger than one acre.

The blades swooped by slowly, spinning at about 10 metersper-second or 20 revolutions in a minute. Other than the rhythmic whizzing sound made by the blade tips, the turbines crank out one to two megawatts each day in near perfect silence.

Power generated atop Bald Mountain feeds substations where the electricity is measured and enters transmission lines at about 69,000 volts. The energy generated by Bald See WInDmIll, PaGe 20

Sustainable Revolution // 17

Corbett from page 13 raphy. But the benefits of this shale revolution are being felt across the entire state.

Beyond the drilling activity, we’ve seen tremendous opportunities for supply

Our goals were clear: seize this opportunity, in a manner that protects the environment and public health; grows jobs; reduces our dependency on foreign energy; and prepares our young people for the jobs of today and tomorrow.

— Gov. Tom Corbett

18 // NEPA Energy Journal

chain and service operators, including engineering and architecture firms like Borton-Lawson, or wire rope manufacturers like Bridon. Still others are benefitting from access to significantly lower energy prices — firms like Procter and Gamble and Sanofi Pasteur. And delivering locally-produced Marcellus natural gas from Northeastern Pennsylvania to Northeastern Pennsylvania markets — such as the recent UGI distribution expansions that will bring Marcellus Shale gas to Wilkes-Barre and Scranton consumers — will save tens of millions of dollars in lower-cost gas and avoided long-distance transportation costs. Everyone uses energy — and everyone can benefit from this abundant resource.

I’ve said many times: Energy equals jobs.

And we’re seeing that equation come true across our great Commonwealth thanks to our shale gas resources.

We’re growing our economy, providing opportunities for thousands of businesses while lowering energy costs for millions of consumers. Lower-cost energy equals more money to invest; to hire more

employees; to grow our economy. Record natural-gas production equals energy security and independence, keeping our dollars here at home and reducing our dependence on nations that too often don’t like us that much.

The Marcellus and other shale gas resources of our Commonwealth present a great opportunity, but with great opportunity comes an even greater responsibility. It carries with it an obligation to make sure we get it right. We are committed to protecting and restoring our environment and precious natural resources, respecting the communities where shale development is occurring, and providing the financial resources to make sure that county and municipal governments have the tools they need to do their job.

We can have a cleaner, healthier environment, while enhancing the quality of life for our children and families. We’re seeing the results, with the promise of more to come. Working in partnership with all stakeholders, I’m committed to making sure that we do this right, for the betterment of all Pennsylvanians. n

A Southwestern shoe-in Jon O’Connell | joconnell@civitasmedia.com

Jake Padula buckles down for a long winter tending gas wells, and an even longer career with SWN.

Jake Padula explains how cold weather affects his daily routine as a field operator for Southwestern energy. Padula and his colleagues have to watch for ice, as moisture that travels up with gas from deep underground can freeze when it enters wellhead pipes.

JOn O’COnnell | JoCoNNEll@CivitASmEDiA.Com Jake Padula looks down on his superiors from an elevated viewpoint. The lanky 21-yearold Southwestern Energy field operator from Dunmore stands about 6-feet, 5-inches tall with a wide and genuine grin that matches his stature.

He’s just wrapping up his first year with the company after an extended internship through Lackawanna College’s School of Petroleum & Natural Gas turned into a career, one Padula said he expects to continue for the rest of his life.

He was a late add to the natural gas program at Lackawanna, applying to college months later than his Dunmore High School classmates scampering off to become doctors, engineers and therapists. He graduated in 2012 one of 17 classmates with a degree in naturalgas production. He enrolled right before the region realized Lackawanna had the only gas well-tending degree this side of the Mississippi river.

A year out of school, he said the program is full. His sister was warned when she enrolled to study at the same school that, if she wanted to study natural-gas production, she’d have to wait a year and half.

But Padula entered the school reluctantly.

“I didn’t know where I wanted to go, I didn’t have the greatest SAT scores,” Padula said. “My parents came and said, ‘Listen, there’s this natural gas north of Tunkhannock and we think you should look into it.’ At first I thought they were nuts.

“They pushed me toward this school, and it’s the best choice I ever made. … I fell in love with the industry, the area, the outdoors, it’s all me,” Padula said.

He filled his internship credits for Southwestern and, after extending his internship to work full time for the company while still studying full time, he applied for a field operator position and slid right in.

With a team, Padula inspects and maintains 68 wells every day.

“We put eyes on every flowing well every day to make sure everything is working properly, there’s nothing wrong with the equipment. We’re there to prevent (problems) from happening or fix them when they happen, no matter what,” Padula said. “Twenty-four/seven we’re out there. The wells are our children, and we take care of them.”

“It’s my job to make sure when the next person comes to that well, they walk into something that’s safe. There is a slight danger to everything out here.”

About 200 employees work from a field office where Padula reports in Nicholson in Wyoming County. The company has 173 wells producing more than 600 billion cubic feet of natural gas out of the Marcellus Shale every day.

Southwestern’s Pennsylvania Operations Manager Dave Sweeley said 78 percent of their employees hail from local communities. Many of the administrative positions are filled by out-of-staters, people who are more versed in the industry, Sweeley said. Southwestern’s headquarters are in Houston, Texas.

Sweeley said he’s happy with the mix of employees, pointing to the company’s offbeat logo in raised relief on the wall, an equation R2/A = V+.

The graphic represents the company’s commitment to pumping “assets through the

right people doing the right things to achieve added value.”

Southwestern stamps it on just about everything.

At a two-well pad in New Milford, Susquehanna County, Padula tucked his chin into his collar bracing from a bonechilling breeze that swept over the mountain top. He walked through the steps of the simple apparatus before him: two well heads delivering gas from more than a mile underground.

The winter brings a stack of problems unique to the season.

Water often flows up with the gas and, when it’s very cold, the water can freeze in the pipes before reaching a dehydrator unit or warming devices.

These are the kinds of problems Padula used to read about in textbooks, but never quite understood until he had to make sure it didn’t happen.

“Until you put your hands on it, you have expectations, but you really don’t know. In a classroom it’s a perfect-world setting, In the field there’s a lot of different aspects to it,” Padula said. n

Field Operator Jake Padula, 21, visits around 30 well pads daily in Susquehanna and Wyoming counties, performing routine maintenance and inspecting wellhead components.

Photos by Amanda Dittmar | NEPA Energy Journal

Sustainable Revolution // 19

Amanda Dittmar | NEPA Energy Journal

Bald mountain Road Wind Farm site manager Brandon nehring climbs inside an unused turbine blade, explaining how the fiberglass structures, about 140 feet long, are fastened to the turbine hub with 90 1-foot bolts.

20 // NEPA Energy Journal

Windmill from page 17 Mountain’s turbines is enough to power 6,480 homes each year.

TaX CReDIT BeneFITS

The federal government offers tax credits for renewable-energy producers determined by their production in kilowatt hours. Wind-production tax credits have always expired on Dec. 31 each year and require new legislation to live again.

The expiration date came and went last year, but they may be re-enacted, the credits can be applied retroactively.

Inconsistency in tax credits leaves investors on shaky ground when considering pumping cash into the industry, said Elowyn Corby, a clean-air representative for PennEnvironment, a Philadelphia-based environmental advocacy group “The important thing about tax credits and having them last over time is that it provides stability. It makes them a much safer investment,” Corby said. “If you don’t know what the field is going to look like in a year because the tax credits are set to expire, it’s much more risky than it needs to be.”

The expiring tax credits are opposite President Barack Obama’s intentions to encourage renewable-energy goals and see renewable energy production double by year 2020, and in doing so provide energy to more than 6 million homes; however, the credits by law must be born in the U.S. House of Representatives, where they still sit.

But Linowes said dependency on tax credits indicates power from wind is not the answer to renewable energy.

“It will never live without the subsidies. The reason is it does not produce enough electricity in the course of the year to cover its costs,” said Lisa Linowes, executive director of WindAction Group.

WindAction is not a pro-gas organization and gets no funding from gas interests. Linowes believes wind farms distract developers from finding the optimal renewable energy source.

Linowes said that the only reason wind energy has survived well enough in Pennsylvania is because tax credits have renewed every year since around 1992.

“They haven’t had that kind of pressure to live without it,” Linowes said.

Linowes predicted if the production tax credits are renewed, it will not happen until March and they likely will be accompanied by a larger taxreform bill.

WIlDlIFe InTeRaCTIOn

In December, Obama publicly turned a blind eye to the fact that dozens of endangered eagles, the bald and golden varieties, were killed illegally

by swinging windmill blades.

Obama said wind farm operators will not be held liable for eagle deaths for the next 30 years to allow technology to develop, according to an Associated Press report.

But Corby said the alternatives are worse.

“I hate to sound insensitive, but often it seems that argument is a red herring and a distraction from the real impact,” Corby said. “The impacts on natural habitats from dirty power sources like coal are so much greater in the long run. Animals and wildlife are better protected in the long run by a transition into clean energy.”

Nehring, who manages a second wind farm in New Jersey and travels the country supporting Infigen’s operations said he has never seen a dead bird near a wind farm, and said the eagle problem is likely isolated to a poorly-planned wind farm site.

Infigen surveyors scouted the Bald Mountain ridge and made note of the bird populations there.

“If there’s going to be some sort of an impact, we don’t put a site up,” Nehring said.

FuRTHeR uP, FuRTHeR In

A recent study by PJM, the entity that administers the mid-Atlantic power grid, found the network could stand to see renewables power up to 30 percent of its electricity demands without threatening service consistency.

Bruce Burcat, executive director for the Mid-Atlantic Renewable Energy Coaltion, said that comes from a highly-efficient network of power plants that use a diverse portfolio of fuel, including nuclear, coal, natural gas and wind.

Burcat said the PJM report explains that, while the Mid-Atlantic power grid can bear 30 percent of its energy from wind, what will likely occur is much less. He bases his estimates on new renewable energy requirements from the federal government.

PJM estimates we will see 13 to 14 percent of our energy from renewable sources, including solar and hydroelectric generators in accordance with new state and federal mandates, though most of that will be from wind, Burcat said.

While wind is significantly cheaper to produce as it bears almost no fuel cost and takes fewer workers to maintain, consumers might notice only marginal decreases in their electric bills as more wind farms are added to the grid, which is supported by many different sources that dictate the wholesale rate of power.

New research and engineering allows turbines to be raised higher and catch more consistent air streams. They cost less to construct and they can be built in more remote regions, Corby said.

“We’re finding ways to put them places that we didn’t realize they could go,” Corby said. “Without a question, wind is both a solid investment financially and also the responsible choice in terms of our environment.” n

Sustainable Revolution // 21

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GueST COmmenTaRy michael a. macDowell

NATURAL GAS TAX COULD PROTECT PA.’S ENVIRONMENT

A severance tax on natural gas extracted from Pennsylvania at drilling operations like this one in New Albany, Bradford County, could help to offset potential environmental impacts, should they emerge in the years and decades ahead.

British economist John Maynard Keynes once quipped that, “In the long run we are all dead.” Through the years, economists have interpreted his comment in various ways.

One clear intention suggests that answers to specific long-run questions about economic policy are difficult to find because few policies have either the track record or the staying power to overcome the vagaries of time. There are several noteworthy exceptions. One, buttressed by overwhelming evidence, shows that market forces, if left alone, will provide the optimal number of goods and services at the least expensive price over time.

Even complex, international markets, like the one for energy, are subject to the laws of supply and demand. Increases in the domestic quantity of natural gas and oil, and the recent decrease in America’s demand for energy should have resulted in a price decrease – and that is exactly what has happened.

Only a few years ago, pundits were predicting gasoline would climb to $5 a gallon. Prices now are hovering close to $3.25 nationally and will probably decline further if the nation does not face an unusual cold spell this winter. The reason for these relatively low prices is not magical. The increase in the quantity of oil and natural gas from shale in the past five years has been remarkable. Domestic oil production is at a 24-year high while foreign imports of oil are at a 17-year low.

For the first time since the early 1990s, U.S. crude oil production has outpaced domestic consumption. Part of the reason for this turnaround is that America has been able to increase its contribution to the 89 million gallons of oil the world consumes each day by 8 percent in the past five years.

24 // NEPA Energy Journal

times leader file photo

For the driving public, as well as those who are concerned about instability in Iran, Iraq, Syria and other countries in that part of the world, this is good news.

Gregory Zuckerman’s new book, “The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters,’’ suggests that both sides of the supply-and-demand equation, along with innovations and entrepreneurial ability, have worked to bring about lower energy prices. In the first place, horizontal drilling accompanied by fracking has increased the supply of oil in the Dakotas and other areas. That same process also has generated significant increases in natural gas production. The greater use of clean-burning natural gas, in turn, has led to much lower costs for the production of electricity and for manufacturing.

Our country also has realized reduced energy consumption. Part of the decrease in demand was driven by the rise in the cost of energy throughout most of the 1990s and the first decade of this century. But it was not the market alone that caused this decrease in demand. Instead, several energy conservation policies were adopted to increase the mileage ratings of automobiles.

Other energy savings policies, many based on market-driven incentives, also were put into place.

Does this means that markets don’t work?

Not exactly. The market works well in allocating current goods and services. It does not do as good of a job in addressing longerrun issues because today’s prices for goods and services might not take into consideration future social costs. For instance, had we foreseen 100 years ago the long-term environmental impact of anthracite mining in Northeastern Pennsylvania, a designated tax could have been developed to address

future mitigation of culm banks, acid mine drainage, mine subsidence and more.

That trust fund could have then been used to cover the costs of reclaiming our lands and restoring them to public use some 60 to 90 years after large anthracite mining concerns ceased operations here.

For this reason, it might make sense to initiate a severance tax on the natural gas industry in Pennsylvania. This suggestion comes with a major caveat, however. The tax cannot be at a level that is so onerous that it creates disincentives for energy companies to explore and recover gas here. There will be no windfall if natural gas companies opt to drill in other states.

There is another important point worth noting. Overall, government has a poor track record in establishing and particularly maintaining “rainy day” funds. There are plenty of worthy causes that can benefit from the increase in revenues. In order for this plan to work properly, the commonwealth must maintain fiscal fortitude. The state must allocate this new funding stream to the mitigation of any environmental issues that might arise from fracking.

After the mitigation fund is established, any additional revenues could be used to enhance Pennsylvania’s infrastructure. No state can enjoy sustained economic prosperity if its roads and bridges – the facilitators of wealth creation – are not sound.

In the long run, all of us will certainly succumb to our ultimate demise. But if good policies are put in place, the Commonwealth of Pennsylvania will live in perpetuity. n michael A. macDowell, of Harveys lake, served as president of misericordia University in Dallas township from 1998 to 2013. He is a former economics professor and is now the managing director of the Calvin K. Kazanjian Economics Foundation.

New taxes won’t

cut it

Guest Commentary Dr. Thomas Jiunta Spokesman, Gas Drilling Awareness Coalition

In his letter, Dr. Michael MacDowell tries to make the case that a natural gas tax can help protect Pennsylvania’s environment.

He cites that market forces, if left alone, would help regulate the optimal number of goods and services at the least expensive price over time. Unfortunately, he fails to mention that the oil and gas industry receives corporate subsidies of well over $7 billion. Maybe the economist John Maynard Keynes would question why we have not let market forces dictate the fate of the fossil-fuel industry. The sustainable energy research and development sector receives no such parity. American taxpayers are getting tired of paying for superfund cleanup sites, tired of paying for the cleanup after climate change disasters, as in last years Hurricane Sandy and are starting to see the risk/benefit profile of fossil fuels doesn’t make sense anymore.

Dr. MacDowell also predicts that with our abundant natural gas supply, prices should continue to decline. What he fails to mention, as do most gas-industry spokes-

people touting energy independence, is that the industry is moving ahead with exporting our shale gas to foreign countries willing to pay 3 to 4 times what we pay domestically. I bet anyone can guess what that will ultimately do to our naturalgas prices at home. Natural gas prices will rise. The industry has already received approval of three natural gas export terminals and has applications for more than 20 more to sell our gas overseas. Do you think it cares about Americans having secure low gas prices over making higher corporate profits?

The scariest logic of his editorial is that if we just tax the industry more we can protect our environment. Never mind that taxing the industry to try and clean up after the fact harm is short-sighted and in many cases impossible. Taxpayers are still paying to clean up the effects of dirty coal mining and burning, but there is no way to bring back those that have succumbed to black lung, like my grandfather, nor reverse the alarming documented negative neurological, cardiovascular and respiratory harms fueled by coal burning.

Unfortunately, the negative environmental and health effects from the gas industry predicted by many physicians may be even greater.

How do we reverse the already alarming asthma rates around gas drilling sites, correct the lung damage which will increase from the tons of hazardous air pollutants spewing out of the growing amount of compressor stations that are steadily being built to pump the gas through the expanding pipeline network? The compressor stations, which are predicted to grow in the northeast region, put out cancer causing agents such as benzene and formaldehyde and will increase our lung disease, asthma and can cause leukemia and neurological damage. Will taxing the industry help when you or your family member comes down with cancer or put clean water back in the polluted drinking water aquifers? The water taken for gas drilling, after being injected with numerous toxic chemicals, cannot be returned to its pristine state and will be lost from the water cycle forever.

If we continue on this course, we the people will have to pay for this mess with our health, our dollars and our lives. We are privatizing the profits and socializing the costs of this dirty industry. Can’t we just be proactive and subsidize sustainable energy research and development more and recognize the writing on the wall for fossil fuels? n Sustainable Revolution // 25

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PREVIEW:

THE 2014 Wolf R O F Schwartz E RAC Hanger G Myers OVERNOR nty McGi

Litz

Pawlowsk i

McCor

d

STeVe mOCaRSKy | SmoCARSKY@CivitASmEDiA.Com

All of the Democratic gubernatorial candidates believe the state should impose a natural-gas severance tax All of the Democrat candidates for Pennsylvania governor this year have at least one thing in common: Unlike the current governor, they support imposing a severance tax on natural gas extracted in the commonwealth.

And with Gov. Tom

one of those Democrats might unseat him in the November election. This in a state that has so far never failed to re-elect an incumbent governor.

Harper Polling and Quinnipiac University polls show that U.S. Rep. Allyson Schwartz

unlike the current governor, they support imposing a severance tax on natural gas extracted in the commonwealth.

Corbett’s low approval ratings, political observers believe there’s a reasonable chance that

is the Democrat candidate who would most handily beat Corbett if the election were held

when those polls were taken in November and December.

Other Democratic candidates scoring high are former Pennsylvania Department of Environmental Protection secretaries Kathleen McGinty and John Hanger and state Treasurer Rob McCord.

The other candidates who have entered the race are Allentown Mayor Ed Pawlowski, businessman and former pastor Max Myers, former Secretary of Revenue Tom Wolf and Lebanon County Commissioner Jo Ellen Litz.

public schools; rebuild our roads, bridges, and mass transit; establish the Commonwealth as a model for clean energy development; and launch a manufacturing renaissance.”

She says Corbett is squandering the opportunity and noted that even though gas production has been surging in Pennsylvania, revenue generated by Corbett’s “wholly inadequate gas impact fee actually dropped” in 2012.

Schwartz advocates for a 5-percent extraction

allySOn SCHWaRTZ Schwartz, of Philadelphia, says that gas extracted from the Marcellus Shale presents Pennsylvania with “an extraordinary opportunity (to) transform our See GOVeRnOR, PaGe 28

Sustainable Revolution // 27

Governor from page 27 tax that she says would generate $612 million for Pennsylvania this budget year alone, adding that revenue would increase annually, reaching $2 bilSCHWARtZ

She favors maintaining the existing impact fee, which, together with a severance tax, would generate $16.6 billion over the next 10 years. lion in 2022-23. She favors maintaining the existing impact fee, which, together with a severance tax, would generate $16.6 billion over the next 10 years, she said, citing Pennsylvania Budget and Policy Center estimates.

Schwartz also notes that she voted against the Safe Water Drinking Act under President George W. Bush in 2005 because it exempted hydraulic fracturing, or fracking — the controversial process used to extract gas from the underground shale formations.

KaTHleen mCGInTy McGinty, of Wayne, Chester County, believes that as long as natural gas development is “subject to tough regulations that protect the environment,” it can “help power new industries, lead to a renaissance in

28 // NEPA Energy Journal

manufacturing and create good-paying jobs for Pennsylvanians.”

She supports a “reasonable severance tax” similar to West Virginia’s that would be two-tiered, with a 4.5-percent tax on the well-head price of gas and a $0.02 per 1,000 cubic feet production tax that would initially generate $600 million and could generate as much as $1.8 billion annually over the next decade. She would keep the impact fee intact to “provide infrastructure funding to communities directly affected by shale development.”

McGinty noted that shale gas development in Pennsylvania began at the end of her tenure with the DEP in 2008 and, under her watch, Pennsylvania began the process of “rewriting the rules for natural gas development.” As governor, she would conmCGiNtY

She supports a “reasonable severance tax” with a 4.5-percent tax on the well-head price of gas and a $0.02 per 1,000 cubic feet production tax that would initially generate $600 million and could generate as much as $1.8 billion annually over the next decade. tinue that effort, expand Marcellus job training for Pennsylvanians, make the Pennsylvania Turnpike a “Green Highway” with refueling stations for natural gas and electric vehicles and increase the numbers and skills of well inspectors.

She also would push for full disclosure of hydraulic fracturing liquids; repeal of a “gag rule” that prevents doctors from shar-

ing medical information about patients exposed to fracking chemicals; “green completion” of gas wells to reduce greenhouse gas emissions; zero net water consumption; proper handling, treatment, and disposal of produced and flowback water; and adequate setbacks and buffers around streams. She would continue a moratorium on leasing state forest lands to drillers.

JOHn HanGeR Hanger, of Hummelstown, Dauphin County, criticized Corbett for squandering Pennsylvania’s energy advantage, abandoning renewable energy and energy efficiency; and not defending its wind energy jobs. He says West Virginia’s severance tax has proven “functional and workable” at 5 percent with 10 percent of the net going to local governments. He thinks a tax at least equal to that one would be appropriate. He would prefer to “merge” the impact fee with a severance tax.

“There isn’t one gas drilling company paying Pennsylvania’s corporate net income tax, not one.

Gov. Corbett and his minions have said such things (about gas companies already paying high state taxes). … At most, they pay the equivalent of the personal income tax rate, which is among the lowest in the country,” Hanger said. “When I was running DEP, indus-

try leaders practically laughed that Pennsylvania didn’t have a tax in place.

They felt it was incredibly foolish.”

He said he would use HANGER

He would prefer to “merge” the impact fee with a severance tax. at least half the revenue to address the “education crisis” in Pennsylvania.

He would also budget revenue for renewable energy programs, including solar, and as well as his Growing Greener III proposal for stream cleanup and other restoration. He feels “uniquely qualified” because he has spent 29 years working on energy issues.

He also wants to establish fueling and charging stations for electricity, gas, and diesel statewide; increase electricity from renewables; extend and expand the state’s energy efficiency initiatives; establish an ombudsman’s office to receive and investigate citizen complaints about gas drilling; start an investigation to identify cost effective measures to protect the energy grid from storm damage; and support research for implementing carbon capture and storage technology.

natural-gas drilling policy in coming months. With regards to a severance tax, he believes gas companies should pay their fair share.

“Whether that is a severance tax or some other means of compensation, Pennsylvania taxpayers should not be expected to foot the bill in order to subsidize this industry,” mCCoRD

With regards to a severance tax, he believes gas companies should pay their fair share.

McCord said, noting the impact drillers have on infrastructure, air quality, water quality, and state and local agencies that oversee drilling. He said he would be a tough, fair regulator committed to ensuring the industry does not compromise smart land management and conservation and would “do more to encourage natural gas use.”

McCord said the argument against a severance tax “is nothing more than a scare tactic masquerading as a talking point. The fact is, the natural gas is beneath our feet, it has a significant value, and it’s not going anywhere.

Drillers want it and Pennsylvania deserves to be compensated fairly for allowing drillers to generate profits from our resources.”

McCord doesn’t see a severance tax as “a panacea for all of the state’s funding needs. It’s simply a matter of fairness.”

He wants to work with the industry to ensure Pennsylvanians are fairly compensated, but at the same time, we he would like to put in place programs that increase domestic demand for ROB mCCORD McCord, of Bryn Mawr, natural gas, because “that Montgomery County, will create jobs in the plans to roll out a detailed state.”

eD PaWlOWSKI Pawlowski, of Allentown, Lehigh County, says Corbett has “sacrificed public school funding in order to fund more corporate tax giveaways that in some cases businesses didn’t ask for or even need.”

Pawlowski vowed to eliminate “a slew of special interest” corporate tax breaks that he says are estimated to reduce corporate tax revenue by 4 percent in 2013-14, as well as push to abolish the impact fee and replace it with a severance tax of 5 percent that he says could generate as much as $1.5

spends only about 38 percent. Expanding pre-kindergarten programs and making higher education more affordable are two ways he would put the additional revenue to use.

But one of his first priorities would be to expand oversight and inspection of the natural gas industry, he says. That would include adding inspectors to assure the safety of the proposed 80,000 miles of pipeline to transport the gas, cover the increased road and highway costs required by the additional commercial vehicles from the natural gas industry and protect natural resources from unintended or unforeseen impacts from drilling.

PAWloWSKi

He vowed to eliminate corporate tax breaks that he says are estimated to reduce corporate tax revenue by 4 percent, push to abolish the impact fee and replace it with a severance tax of 5 percent that could generate as much as $1.5 billion per year by 2019-20. billion per year by 201920 — funds he says he’ll put toward public education.

Increasing state education funding would be a priority for Pawlowski, who says the national average for public school funding is about 43 percent while Pennsylvania

THOmaS W. WOlF Wolf, of Mount Wolf, York County, called for a severance tax on natural gas extraction and responsible development four years ago, referring to the commonwealth as “the Saudi Arabia of natural gas.” His campaign did not provide what he would consider an appropriate rate for a severance tax, nor whether he would keep the impact fee in place.

Wolf says “Corbett’s failed leadership has given away our state’s valuable resources without generating revenue for critical investments like schools, roads, and economic development and harmed our environment.” He would direct funding to “strategic

investments in schools, Susquehanna County as roads and renewable evidence “contamination does occur.” energy technology.”

“Common sense dicAnd, unlike Corbett, tates that if you are going to pump millions of galWolF lons of toxic chemicals He would into the ground, they will revisit us some day down direct funding the road. … Additionally, to “strategic everything deteriorates investments in over time. No matter how schools, roads and well constructed the natrenewable energy ural gas well linings and caps may be, they will technology.” deteriorate. Will it be in our lifetime? Perhaps not, Wolf says, he would but it could be in our chil“make sure state agen- dren’s or grandchildren’s cies tasked with environ- lifetime,” he said, noting mental oversight are ade- that earthquakes could quately funded, staffed also lead to a disastrous and supervised to prevent release of chemicals. reckless drilling, and that irresponsible companies mYERS are held accountable.”

He “strongly favors” To that end, he supan extraction tax ports increasing funding for the Department of 5 percent and of Environmental leaving in place the Protection, and requirimpact fee. ing drillers to publicly disclose chemicals used A moratorium, he says, in the hydraulic fracturing process and lifting “would allow everyone to the current gag order on catch their breath after a very aggressive drillphysicians. ing expansion season.

The moratorium period should be used to review data in an honest and open arena.” He would support university and private sector research to find a better extraction method.

In the end, he says, it will need to be a citizens’ movement that compels the legislature “to do the right thing and stand up for our Pennsylvania families and environment” and a topic that his maX myeRS Myers, of proposed Pennsylvania Commission M e c h a n i c s b u r g , Peoples Cumberland County, would address. “strongly favors” an extraction tax of 5 perlitZ cent and leaving in place the impact fee. Revenues She supports a would go to education.

6-percent tax, which And while he is “not opposed to the natural she says would have brought in $765 gas industry as a whole,” he also sees “wisdom” in million in revenue a moratorium on frackthis fiscal year. ing, pointing to Dimock,

JO ellen lITZ Admittedly the underdog in the race, Litz, of Lebanon, Lebanon County, says it’s unfair Pennsylvania has a “disappearing” impact fee and no extraction tax while other states with shale drilling do. She supports a 6-percent tax, which she says would have brought in $765 million in revenue this fiscal year.

Litz says revenues should be used for “obvious expenses” such as road and bridge repair, clean water projects, more environmental inspectors, emergency management and education. And she doesn’t think instituting a higher extraction tax will scare off drillers.

“Let’s face it. Marcellus drillers aren’t going anywhere.

Pennsylvania offers benefits that other states may envy, and drillers know benefit their pocketbooks. First, we are close to gas transmission lines. … Further, the quality of PA Marcellus is good — pure and dry, which takes little processing. Not so in other areas with wet and dirty gas.

And finally, abundance,” Litz said.

Litz said she brings local government experience to the table.

As chairwoman of the County Commissioners Association of Pennsylvania in 2013, traveled throughout the state and shared the stage with Corbett on several occasions, finding that she disagreed with him on many issues. n Sustainable Revolution // 29

Supreme Court knocks down Act 13 zoning provisions Jon O’Connell | joconnell@civitasmedia.com On Dec. 19, the Pennsylvania Supreme Court found provisions of the mammoth Act 13 of 2012, a revision to the state’s Oil and Gas Law, violate the commonwealth’s duties as a trustee of the state’s natural resources.

In its decision, the court returned zoning power to municipal governments and lifted the statewide zoning ordinance requirements that several township leaders argued overstepped the original design of municipal zoning codes, codes that empower the state’s smallest governments to assign uniform land designations that best suit their communities.

Act 13 was signed by Gov. Tom Corbett in February 2012 and updated the state’s resource-development laws taking into consideration the untapped decades-worth of natural gas stored deep underground and the new methods, namely horizontal drilling and hydraulic fracturing, to get it out.

Part of the new law applied blanket zoning for all municipalities to allow for this new technology and development.

The court’s decision came as a dizzying blow to the natural-gas industry in Pennsylvania, and it’s largely undetermined at this time how it will effect new natural-gas development in the state.

Corbett immediately responded to the court’s decision that hacked away at legislation he supported.

“The act was crafted with strong input and support from Pennsylvania’s local government organizations,” Corbett said.

“I will continue to work with members of the House and Senate to ensure that Pennsylvania’s thriving energy industry grows and provides jobs while balancing the interests of local communities.”

David Spigelmyer — CEO for Marcellus Shale Coalition, an organization made of industry-leading corporations — that same day published a statement expressing his dissatisfaction with the ruling.

“Although we will continue to collaborate with communities across the Commonwealth, today’s decision is a

30 // NEPA Energy Journal

disappointment and represents a missed opportunity to establish a standard set of rules governing the responsible development and operation of shale gas wells in Pennsylvania,” Spigelmyer said.

Spigelmyer said the coalition is reviewing at what level the decision will affect its members’ operations. He said if economic prosperity is the goal, “we must commit to working together toward common-sense proposals that encourage — rather than discourage — investment into the commonwealth.”

Conversely, environmental-advocacy groups cheered at the decision. Erika Staaf, clean-water advocate for the Philadelphiabased PennEnvironment called it an “early holiday gift.”

“The local zoning preemption provisions that were struck down today were shocking and appalling — tying the hands of local communities,” Staaf said. “We are heartened to see that the court recognized this massive overreach by the Pennsylvania legislature is indeed unconstitutional.”

OPPOSED FROM THE START The matter came before the courts when leaders from municipalities in several counties where gas drilling is happening appealed Act 13’s sweeping zoning rules one month after it became law.

In its final opinion published Dec. 19, the justices said they found the appellants’ claim had merit that gas drilling had wrecked the expected aesthetic qualities of their communities and ruled in favor of the townships.

The decision was accelerated through the judicial system, the opinion said, because the judges found the law itself was moved quickly to reach the governor’s pen and the citizenry stood to suffer economically if the mandated statewide zoning codes persisted.

Decision appealed On Jan. 2, DEP and PUC lawyers jointly applied to the court for reconsideration urging the court to vacate its judgment,

claiming facts and understanding were absent when it decided to side with the appellants.

“It appears that the court based its sweeping factual conclusions, at least in part, on affidavits submitted … by municipalities and their proxies in support of their request for summary relief,” the application says.

The application calls for the case to be moved back to a trial court where facts can be gathered, and argues that the Supreme Court was out of line for issuing statements of fact, statements fitting for the lower Commonwealth Court to determine, but out of the Supreme Court’s jurisdiction. n

Excerpt from the Pennsylvania Constitution’s Environmental Rights Amendment used by the state Supreme Court to knock down parts of Act 13.

“The people have a right to clean air, pure water, and to the preservation of the natural, scenic, historic and esthetic values of the environment.

Pennsylvania’s public natural resources are the common property of all the people, including generations yet to come.”

Manufacturing Excellence Dedicated Commitment Integrity Customer Satisfaction Ongoing Improvements

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STAY SMART AT HOLIDAY INN EXPRESSÂŽ GIBSON

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The Holiday Inn Express Gibson is a beautiful hotel located only 12 miles from Elk Mountain Ski Resort.

Experience the comfort and convenience of all its modern services and amenities. Stay SmartÂŽ...stay at Holiday Inn Express â&#x20AC;˘ Complimentary HOT â&#x20AC;˘ Business Center ExpressÂŽ Start Breakfast â&#x20AC;˘ Fitness room â&#x20AC;˘ Free Wireless high-speed â&#x20AC;˘ Restaurants nearby Internet Access â&#x20AC;˘ All guestrooms include â&#x20AC;˘ Indoor heated pool microwave and refrigerator

RATES STARTING AT

129

$

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PER NIGHT PLUS TAX (Based on Availability)

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SERVING 20 PA COUNTIES

I-81 at Exit 219 (Gibson) â&#x20AC;˘ New Milford, PA 18834 â&#x20AC;˘ 1-800-HOLIDAY â&#x20AC;˘ www.hiexpress.com/gibson

Horlacher &

Sherwood

Serving the Forestry And Natural Gas Industries With The BEST In Equipment, Parts & Service

MERICLE HAS THE SPACE YOU NEED.

NOW.

We have more Ready to Go sites and Ready to Go buildings than any other developer in Pennsylvania, plus our in-house team of professionals will customize an existing building or get your new structure up in record time.

INDUSTRIAL, OFFICE AND WAREHOUSE SPACE OUTDOOR STORAGE FLEXIBLE SHORT AND LONG TERM LEASES

mericle â&#x20AC;˘ com

DAN WALSH 570.823.1100

Mericle, a Butler Builderâ&#x201E;˘, is proud to be part of a network of building professionals dedicated to providing you the best construction for your needs.

Transport Trailers, Frac Tanks, Bob Tails,Tractors,Winch Trucks, Hot Shots, Or Vac Truck Parts Horlacher & Sherwood Inc, has what you need! Give us a call today and see what we can do for you!!!

Dragon Products, Stephens Pneumatics, Anderson Trailers, Pequea Trailers,Western Star, Freightliner, Elliot, Pik-Rite, Prebola, National Vaccuum SALES - PARTS - SERVICE

EQUIPMENT AND TRUCK SALES

Art Carpenter Office: 570-996-4692 â&#x20AC;˘ Call: 570-240-0713 Email: skiddershop@epix.net

www.skiddershop.com Sustainable Revolution // 31

Mt. Zion Material Handling Equipment Inc. 570-388-4001 • www.mtzionmh.com

We specialize in industrial products that offer cost effective solutions for your material handling needs. We are committed to providing quality products at competitive prices Mt. Zion is a family run and locally owned business.We have over 50 years of combined experience in our industry.We are located in Dallas PA and are able to serve your needs regardless of your location. Mt Zion Material Handling has been in business for over a decade and has served numerous businesses with their equipment needs.

CALL TO REQUEST A FREE MATERIAL HANDLING & STORAGE EQUIPMENT CATALOG

MT. ZION PRODUCTS

Loading Docks • Doors • Mezzanines & Offices Hoist & Crane • Storage Systems • Work Positioners Lift Assistants • Conveyer Systems

LOADING DOCKS

Exclusive local distributor of

Kelley Loading Dock Equipment Systems

Call For A Free Quote Today!

COMMERCIAL DOORS

We offer a wide variety of doors to meet your industrial needs from production areas, clean room applications, warehousing & loading dock areas.

Our doors are the most versatile in the industry.

Available in steel, aluminum, or stainless steel.

Built for superior operation and durability.