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A volunteer group in Westmoreland County called the Murrysville Stream Monitoring Group tests seven local streams once each month, looking for total dissolved solids. They’ve been testing since September of last year. The group was started and is populated by anti-drillers, people opposed to Marcellus Shale drilling. The locations they’ve selected to test are close to active Marcellus well drilling operations. What have they found so far? Nothing. Each stream has passed every test they’ve done—both upstream close to well drilling and downstream away from drilling. Same result—nothing.
Since they aren’t finding anything in the streams, maybe it’s time for the Murrysville Group to turn their attention to the air. And so they have. But monitoring air is expensive, requiring equipment that costs $3,000 per unit. The group wants three units, and they want taxpayers to fund it:
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The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Two years ago, an informal group of high level leaders from both the Marcellus drilling industry (companies like Shell, CONSOL, Chevron and EQT) sat down with high level people from organizations trying to stop shale drilling (organizations like the Heniz Endowment, PennFuture, GASP and the Clean Air Taskforce), to see if both sides could agree on standards that would tell the world, “this activity is safe to do.” There were times, early on, when both sides thought the effort would be fruitless. But somewhere along the way, they “came together” and formed what was officially announced yesterday: The Center for Sustainable Shale Development (CSSD).
The CSSD proposes 15 new “performance standards” for those in the industry to follow—for drillers, midstream companies and in some cases the supply chain companies that work for them. Depending on your viewpoint, the CSSD and their standards are either a brilliant compromise that will make drilling safer and polish up the image of the industry, or a new group of mafia-like bullies out to force companies to pony up $30,000 to get certified “or else.” The group clearly wants (demands?) to be the certification body for Marcellus drillers, and if you don’t seek certification, they clearly intend to make you a pariah.
This MDN article will necessarily be much longer than most. We sat in on yesterday’s press conference by the CSSD (via phone), and will have our opinion as to the group, what they said, and what it means. We list our own summary of the 15 proposed new standards below (very important for those in industry to review this list). We also link to a number of other news accounts, so you can get other opinions.
The new CSSD has the power and potential to affect every single stakeholder in the shale drilling debate: from landowners to regulators to drillers and supply chain companies. Yes, it’s that important…
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The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Even though it didn’t happen in the Marcellus or Utica Shale area, this one is just too delicious not to share. The location was outside of Boulder, Colorado, but this story could just as easily have been in the Marcellus/Utica. The same kind of anti-drilling nutters inhabit the Eastern seaboard area too.
Some 30 protesters showed up last Saturday at a horizontal drilling/fracking site in Boulder County, CO where Encana is drilling five wells. Although the protesters claim that drilling and fracking create a toxic hell on earth, at least 10 of the “protesters” were their own children, one of them a one-year old. Brought along to a dangerous drilling site with “millions of gallons of industrial waste.” Must be it wasn’t so dangerous after all:
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The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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This past week brought a surprise announcement from “stalled at the gate” New York State. A group of landowners in Tioga County, NY (which sits between Binghamton and Elmira, in what is called the Southern Tier region of New York) are signing a lease with eCorp to allow Marcellus drilling using a waterless fracking technology pioneered by the Canadian company GASFRAC (see this MDN story). By using LPG fracking technology, eCorp and the Tioga landowners can move forward with drilling now—they won’t have to wait for New York’s four-year-old moratorium on fracking to be lifted. They can frack now with this waterless technology.
In the article about the Tioga landowner deal, MDN speculated that given most or all of the stated reasons anti-drillers oppose drilling would be gone, they will invent new reasons to not like waterless fracking too. That is, this situation will show the true colors of anti-drillers—that their agenda is really one of not only opposing the recovery of, but also the use of fossil fuels because of a misguided belief/philosophy/worldview that fossil fuels are evil.
Which brings us to this week’s poll question: Will anti-drillers oppose waterless LPG fracking too? I’d like to know what you think. Will those who oppose drilling now get on board? Or is their position so hardened, so unbending, so “over the top” that they will oppose any kind of extraction of natural gas? Head on over to the right side of any page and register your vote.
Last Week’s Poll Results
Last week MDN wanted to know if you believe that energy companies are intentionally overstating just how much recoverable gas there is in shale deposits. Here’s the results:
Are drillers overstating recoverable shale gas estimates to increase the stock price and attract investors?
No (55%, 150 Votes)
Yes (26%, 71 Votes)
Not sure (19%, 53 Votes)
Total Voters: 274
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
Happy fracking,
Jim Willis, Editor
P.S. Sales of the new “Marcellus and Utica Shale Databook 2012” continue to be strong—thanks! The Databook is a 116-page comprehensive guide to drilling in the Marcellus and Utica Shale. Chock full of maps showing where permits have been issued, including details on drillers, pipelines and regulations, this new publication is indispensable if you have an interest in shale drilling in the Marcellus and Utica. For more details, including sample pages, visit: MarcellusDrilling.com/Databook.
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The most read story on MDN over the past seven days was about estimates of how much natural gas the Marcellus contains—and for good reason.
Last year the New York Times started a riff about how evil natural gas is. One of themes from the Times has been that the amount of shale gas in general that is recoverable (“proven reserves”) has been vastly overstated by the energy industry (see this MDN story). The Times, and most recently Rolling Stone (see this MDN story), have tried to make the case that shale gas drillers know there’s not as much recoverable shale gas as they state on their balance sheets and that they intentionally overstate how much gas there is to attract more investment and drive up the stock price for their companies. The Times and Rolling Stone claim the situation is akin to a Ponzi scheme, a house of cards that will at some point come tumbling down.
There’s just one small problem with that particular bit of fiction: a glut of new natural gas that’s hit the market and has driven the commodity price of natural gas to 10-year price lows. If the gas really isn’t there, why is there so much of it flooding the market?
Which brings us to this week’s poll question: Are drillers intentionally overstating how much shale gas there is to drive up the value of their companies and attract investors? What’s your opinion? Head on over to the right side of any page and register your vote.
Last Week’s Poll Results
Last week MDN wanted to know if you were surprised that the EPA found no water problems caused by fracking in Dimock, PA. And no surprise here: Most MDN readers were not surprised.
Were you surprised the EPA found no water problems from drilling in Dimock?
No (82%, 197 Votes)
Yes (18%, 43 Votes)
Total Voters: 240
Marcellus and Utica Shale Databook 2012
Thank you to the many MDN readers who have already purchased the “Marcellus and Utica Shale Databook 2012.” The Databook is a 116-page comprehensive guide to drilling in the Marcellus and Utica Shale. Chock full of maps showing where permits have been issued, including details on drillers, pipelines and regulations, this new publication is indispensable if you have an interest in shale drilling in the Marcellus and Utica. For more details, including sample pages, visit: MarcellusDrilling.com/Databook.
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
May the odds be ever in your favor,
Jim Willis, Editor
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The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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It certainly has been an eventful week. Two stories loomed large. The first was Shell’s announcement on Thursday that they have signed a letter of intent with Horsehead Corporation for a zinc processing plant location in Monaca, PA (Beaver County) as the location where they intend to build a multi-billion dollar ethane cracker plant (see this MDN story). See an aerial photograph of the plant location by clicking the image on the right (courtesy of ShaleNavigator).
Building a petrochemical plant of this size in the Appalachian region is an amazing benefit to the entire northeastern economy and will be for years to come. The only “downside” (if you can call it that) is that construction to build the plant is at least two years away. Still, this is a huge vote of confidence in the Marcellus and Utica Shale and it’s potential. As one commenter pointed out, Shell has run the numbers in their spreadsheets, basing their decision on economics—and their spreadsheets tell them the Marcellus and Utica are winners.
The other major news from this past week was that the Environmental Protection Agency (EPA) released the first round of water test results from their own testing in Dimock, PA and has found the water is safe to drink (see this MDN story). The families suing Cabot Oil & Gas hoping for a big payday are not happy with the EPA results. MDN wondered where Josh Fox and his banjo, and Mark Ruffalo and his “spotless mind” were? They were no place to be found around Dimock—but then Dimock was always just a stage prop for them anyway—a way to gain yet another 15 minutes of national attention.
The EPA test results are not yet all done, but this first round certainly seems to indicate the EPA will perhaps finally butt out of Dimock.
The Dimock situation fosters this week’s poll question: Were you surprised that the EPA found no water problems in Dimock? Not, “Were you happy?” or “Were you distressed?” But, did it surprise you? It would be a surprise if you expected the EPA to find water problems. MDN is interested in knowing what your expectations were with EPA’s testing.
Head on over to the right side of any page and register your vote.
Last Week’s Poll Results
Last week MDN asked your opinion on whether or not plans like that being promoted by Gov. John Kasich in Ohio to “spread the wealth” by taxing drilling (one group) to give it to another group via lower taxes, is a good idea. The majority said no, it’s not a good idea.
Is it OK to tax shale drilling and share the proceeds with all citizens via an income tax cut?
No (52%, 135 Votes)
Yes (40%, 105 Votes)
Not sure (8%, 22 Votes)
Total Voters: 262
Coming This Week – MDN’s First Paid Publication
MDN editor Jim Willis is super excited to announce MDN’s first paid publication will become available this week. It’s called “Marcellus and Utica Shale Databook 2012.” The Databook is a 116-page comprehensive guide to drilling in the Marcellus and Utica Shale. Chock full of maps showing where permits have been issued, including details on drillers, pipelines and regulations, I believe you will find this new publication indispensable if you have an interest in shale drilling in the Marcellus and Utica. Watch the MDN site this week for a special announcement!
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
Happy reading,
Jim Willis, Editor
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Stop Press: Shell Chemical has selected a location in Beaver County, Pennsylvania to potentially build an ethane cracker plant. Shell announced yesterday afternoon that the company has signed a land option agreement with Horsehead Corporation to “evaluate a site” near Monaca, PA, which is about 35 miles northwest of Pittsburgh, along the Ohio River (see the inset map). The site is about 15 miles from the borders of both West Virginia and Ohio, so Shell chose a location about as close to the tri-state border as it could get.
This is headliner news because the facility itself will mean at least $2 billion of investment to build, creating some 10,000 jobs both to build it and to operate it after it’s built. One of the components of “wet gas” or natural gas liquids found more often in western Pennsylvania and eastern Ohio is ethane. An ethane cracker plant chemically “cracks” the ethane into ethylene, which is a raw material used to make plastics and other materials. With an abundant supply of wet Marcellus and Utica Shale gas, the plant will have plenty of cheap ethane to crack.
Once the plant is built, other businesses that use cheap ethylene to manufacture plastics will also locate in the vicinity of the plant. The multiplier effect will be huge in the entire region—some estimates are as high as $15-$20 billion of new economic activity could come as a result of the plant.
All three states lobbied Shell heavily, offering various incentives to locate the plant in their state. A few weeks ago, MDN readers and MDN editor Jim Willis had some fun predicting where the plant may go. Jim was wrong! He predicted it would be built in West Virginia’s panhandle for a variety of reasons (see this MDN story). However, MDN readers guessed correctly. In a poll taken Feb. 12-18, 42 percent of MDN readers said the plant would be built in PA, 31 percent said OH and 27 percent said WV. Kudos to MDN’s readers!
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This past week brought the news that Ohio Gov. John Kasich will this week unveil a plan to assess a new tax on shale gas drilling (see this MDN story). Unlike Pennsylvania’s recently passed tax (oops, impact fee) where 60 percent stays in the local community to offset the effects of where drilling actually happens and “only” 40 percent goes to Harrisburg for politicians to play with, it appears that 100 percent of this new Ohio tax will go to the general revenue fund so that Kasich can give all residents an Ohio state income tax cut.
MDN has been accused of having Tea Party views when it comes to taxes. Guilty as charged. As we pointed out in a second story this week, the Ohio Oil and Gas Association also agrees with MDN’s view that the proposed new tax essentially “spreads the wealth” unfairly from those who own the resource (landowners) and those who work hard to produce it (drillers) to those who have had nothing to do with it. But, it seems, such is the world we’ve come to live in. What’s yours is mine and if you don’t like it, well, we’ll elect people who will forcibly take it from you and give it to me! Welcome to Ameritopia where we’re born free and then taxed to death.
But MDN wonders, is this the price we must pay to develop this natural resource? Do we have to “buy off” the population at large? Would such a strategy work in New York too? If you take a certain percentage of the proceeds from drilling and just hand it out, as Alaska does with oil tax money to its citizens—would that change public opinion toward shale oil and gas drilling? The sad truth is, it might well.
So this week we ask you the question, what do you think? Is it OK to tax shale drilling and share the proceeds with everyone via a personal income tax cut? It will be interesting to see what MDN readers think.
Last Week’s Poll Results
Last week MDN asked a question to find out if you personally know people in the shale drilling industry—or if you work in the industry yourself. By a hefty 3 to 2 margin the answer is “yes” you do personally know people working in the industry.
Do you or someone you know (family member, friend, acquaintance) work in the shale gas industry?
Yes (64%, 138 Votes)
No (36%, 77 Votes)
Total Voters: 215
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
Happy “spring forward”,
Jim Willis, Editor
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The past few weeks there have been a lot of stories about, and interest in, shale industry jobs. When I compile the “top five most viewed stories” for the past week and the past month, I leave out of the list hits on non-article pages, like the Landowner’s directory, which usually receives as many or more reads as some MDN stories in a given week.
One item that caught my attention for this past week was the number of views for a calendar item—the first time I recall a calendar item getting more views than a story! The calendar item as for a job recruitment fair near Pittsburgh held yesterday: PIOGA Job Recruitment Expo – Washington, PA. That little calendar entry on MDN received the second most number of reads in the past seven days (731), although I did not include it in the “top 5” stories list below (I don’t include calendar items in that list, only stories).
I asked myself, why that calendar item? In digging through the web analytics, I found the vast majority of incoming visitors to that page came from Google searches, which says to me there was local media coverage in Pittsburgh for the job fair, and that coverage sent people scrambling to search for more details on the expo. Many people fire up Google to perform a search for information. The number one search phrase people used in Google to find more details for the expo, at least for the ones who came to MDN, was “pioga recruitment expo”. MDN’s calendar item is, as of today, the number two result for that search on Google. PIOGA themselves are the number one result.
There really is no mystery in why people are interested in shale gas jobs. The job-generating power of shale gas can not be overstated. It’s potential is huge. Over the past week we had the release of a study predicting 65,000 new jobs in Ohio from shale gas drilling by 2014—two short years away. New facilities are being built (see this article on Baker Hughes) creating even more jobs. And anecdotally, it seems almost daily in my own personal circle of family, friends, and acquaintances, I hear of someone who now works in the shale industry now. What’s so amazing about that? I live in New York, where there is no drilling! To be fair, I live about 15 miles from the border of Susquehanna County, Pennsylvania, and there is a LOT of drilling happening there—and that’s where my family and friends are finding work. So even though New York is still stuck at the starting gate with respect to drilling, there are some New Yorkers who live near border areas in what is called the Southern Tier of New York who are benefiting from the drilling that happens in PA. Go PA!
With an abundance of new shale jobs, I wonder (and hence this week’s poll question), do either you, or someone you know (friend, family member, acquaintance) work for the shale gas industry? I would like to know how widespread this phenomenon is. Register your vote on the right side of any page on the website.
Last Week’s Poll Results
Actually, last week’s poll ran for two weeks. I wanted to know whether or not you have enough land to lease and if you do, if it’s now under lease for drilling. The poll found of those who own enough land to lease, it’s pretty close between those who have signed and those who have not—roughly half and half. Thanks for participating!
For those in the Marcellus/Utica Shale region, is your land:
Leased for drilling (42%, 167 Votes)
Not leased for drilling (48%, 191 Votes)
Does not apply to me (10%, 40 Votes)
Total Voters: 398
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
Happy reading,
Jim Willis, Editor
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This week MDN asks a question about you, our valued reader. Do you live in the Marcellus or Utica Shale region? If so, is your land leased for drilling? Not leased? Or does the question not apply to you—either you don’t own land, or you don’t own enough to be worthwhile for drilling, or maybe you own a house inside of a city or village, or maybe you don’t live in the Marcellus/Utica region. I would like to take the pulse of those who are reading MDN on a regular basis.
Speaking of which, MDN has just passed another major milestone. There are now over 40,000 unique individuals who visit the site each and every month. Some visit more than once (some many times!), so the number of visits on a monthly basis is now 70,000. Thank you!
In addition, some hardcore people subscribe to receive MDN’s daily email alert (subscribe here) that contains the headlines for stories posted that day (Monday through Friday, plus Sunday). That number now stands at 2,300. Again, thank you!
Since there are so many new visitors, I would like to know a bit more about who is reading. One of the best ways of doing that is to find out if your interest lies in leasing your land for drilling. Please take a moment to vote on the right side of any page in the site. It’s completely anonymous.
Last Week’s Cracker Plant Poll & MDN’s Prediction
Last week’s MDN poll asked you to put on your prognosticator’s hat and predict where Shell will decide to build its new billion dollar ethane cracker plant. I asked you to refrain from boosterism and tell me where you think it will be built, not where you want it to be built. The overwhelming majority believe it will be built in Pennsylvania. After that, Ohio, and last, West Virginia. Let me tell you what I think!
MDN must depart from the wisdom of the the crowd and predicts it will be built in West Virginia. Please don’t mistake this prediction for cheerleading or preference. I believe having it built in any of those states is a fine choice. Let me tell you why I think it will be WV.
The plant must be located near the wet gas areas of the Marcellus and Utica Shales. That means either southwest PA, WV or eastern OH. No mystery or great brainpower there. The company building the plant, Shell, also has extensive lease holdings throughout the region for drilling. The plant will be operated by a different division than the drilling, but it’s still the same company. Here’s the relevant things I would consider if I were Shell:
- In PA, the largest city in the western part of the state is Pittsburgh—arguably the energy capital of the Marcellus and Utica Shales. Pittsburgh has banned drilling and has threatened communities upstream with “toxic trespass” from drilling in their communities—they are very threatening and menacing to their neighbors. They also have a U.S. Senator, Bob Casey, who has introduced federal legislation that would severely limit hydraulic fracturing and make what is a state regulatory issue a federal issue, i.e., it would trample states’ rights. If I were them, I’d find Casey’s incessant cheerleading to land my plant hypocritical to say the least. In PA’s favor, they did just pass new legislation that makes drilling throughout the state a bit less uncertain by limiting local zoning laws that apply to drilling, and their version of a severance tax (called an impact fee) is very reasonable.
- In Ohio, we have the Utica Shale, and it’s hot. We have a governor, John Kasich, who wants the plant badly and a legislature willing to grant Shell $1.4 billion in incentives to build it—that goes a long way. But Ohio also has a Republican attorney general, Mike DeWine, who seems to want to score political points by going after drillers who he claims are polluting, and he’s trying to deny a wastewater treatment plant a permit to operate previously granted (saying it was granted illegally). Will Mr. DeWine come after Shell in the future? It seems the leaders of Ohio are not all on the same page when it comes to drilling. Still, it has its appeals—that $1.4B is a big incentive!
- Then there’s West Virginia. This past year they passed new gas drilling legislation in record time. They’ve passed a law saying if Shell invests $2 billion in a plant there, they won’t have to pay any property taxes for 25 years, and taxes on machinery and equipment will be drastically reduced. They’re also willing to install short line railroads, new railroad bridges, and do just about anything else Shell needs to make a site perfect for their needs. And they’ve been courting Shell, nonstop, for more than year. All of their leaders are on the same page, the welcome mat is out, and the panhandle area is smack in the middle of the tri-state region where Shell wants to be. OH on one side, PA on the other.
That’s how I would think about the decision before Shell, and why I predict it will be West Virginia. Of course there are other key considerations, like a suitable site that can be obtained at the right price, major highways and railways nearby, close to the river. But if all of those factors are about the same, I think Shell will favor WV for the reasons I’ve stated.
Caveat: I have absolutely no insider knowledge. No tips from anyone. I have not spoken to Shell. I make my prediction based purely on speculation and reading, widely, about the issue. That’s it. So if it’s one of the other states, oh well! I’ll eat some humble pie. The bottom line here is, no matter where it’s built, it’s a huge win for everyone in the entire northeast.
Poll results: Where will Shell build its new cracker plant?
Pennsylvania (42%, 144 Votes)
Ohio (31%, 106 Votes)
West Virginia (27%, 93 Votes)
Total Voters: 343
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
Happy reading,
Jim Willis, Editor
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This week MDN asks the poll question, “Where will Shell build its new cracker plant?” MDN reported some three weeks ago that the timing for Shell’s announcement had changed from January to February (see this MDN story). Unless the timeline changes again, which is not beyond the realm of possibility, we should find out very soon where Shell has decided to build a plant.
Since there are new MDN readers each week, a very brief petrochemical lesson in case you’re not quite sure what a cracker plant is, and why it’s important. When natural gas is drilled, the primary chemical compound that comes out of the bore hole is methane, what you typically think of as “natural gas.” But other chemical compounds come out as well, along with the methane. The second largest chemical component by volume is a chemical called ethane (one of the natural gas liquids, see this MDN story for more on NGLs). Anywhere from one to six percent of what is mined is ethane. All of the gas that is mined needs processing to separate it into its components. What happens with ethane?
Ethane can be further processed, or chemically “cracked” into ethylene, which is a raw material used to make plastics. When Shell builds its $1.5-$2.0 billion ethane cracker plant, it means that dozens, perhaps hundreds of other businesses that manufacture plastics will locate around the plant like satellites orbiting a planet. All of sudden, what is a great opportunity—two billion dollars of investments and thousands of jobs—becomes 15 to 20 billion dollars of economic activity, tens of thousands of jobs, and billions in new tax revenue. It is truly a mind-blowing opportunity for the state that lands the cracker plant.
So now you have an inkling why West Virginia voted to eliminate property tax for any plant that invests at least $2 billion. And why Ohio is offering $1.4 billion in incentives. And why the governors of both WV and OH have flown to Houston to meet with Shell to try and convince them to select their state (see this MDN story). Lately, Pennsylvania is also getting in on the action, with Sen. Bob Casey calling and issuing press releases every other day (see this MDN story). And as everyone knows, PA has a pro-drilling governor, Tom Corbett.
So where will it go? It’s truly anyone’s guess. We know this much: It will be built in either West Virginia, Ohio or Pennsylvania. Shell has stated they have certain requirements, like easy access to a river and railroad lines. WV has all but promised to build new short line railroads and bridges if necessary. All of the states are “bidding” to get the plant by offering various deals.
What do you think? Not, “what do you hope.” From reading various accounts of who’s trying the hardest to attract the plant, where do you think Shell will end up building it? Register your vote along the right side of any page on the site. Let’s have some fun and see if the MDN readership can accurately guess the outcome.
Last Week’s Poll
Last week’s MDN poll asked your opinion of the documentary file Gasland. A sizable number, nearly one quarter, have not yet seen it. Of those who have watched it, a majority of MDN readers believe Josh Fox is not playing fair with his viewers. MDN doesn’t think so either. Here are the results:
Is the documentary Gasland:
Mostly inaccurate/propaganda (56%, 132 Votes)
Haven’t watched it (23%, 53 Votes)
Mostly accurate/truthful (21%, 49 Votes)
Total Voters: 234
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
Happy reading,
Jim Willis, Editor
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Here’s an “I told you so.” Last week, MDN covered the story of the arrest of Gasland filmmaker Josh Fox at a Congressional hearing (see this MDN story). That episode gave rise to MDN’s weekly update this past Sunday, and the current MDN poll which asks if Gasland is truth or fiction.
In Sunday’s weekly update, MDN wrote:
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