The Independent Oil and Gas Association of New York (IOGA NY), after studying the new draft drilling rules issued by the state Department of Environmental Conservation (DEC) wrote a letter to DEC Commissioner Joe Martens and Gov. Andrew Cuomo on September 2 stating that the new rules, as written, are not acceptable if the state wants there to be any shale gas drilling. A copy of the 15-page letter with attachments (31 pages total) was obtained by Gannett News and can be downloaded below.
In yesterday’s Pittsburgh Business Times, reporter Anya Litvak does a good job of analyzing the prospects for various ethane pipelines that may (or may not) be constructed from the Marcellus region to other geographies in order to process the ethane into ethylene (a raw material used in making plastics). She keyed off the news that the joint venture from El Paso Corp. and Spectra Energy to build a Marcellus Ethane Pipeline Systems (MEPS) didn’t attract enough interest for it to go forward.
However, as MDN mentioned yesterday, Enterprise Products Products is building an ethane pipeline and Chesapeake Energy will be its first customer (see this MDN story). That pipeline is due to go in service in 2014.
Gastar Exploration, a Houston-based driller with operations in the Marcellus recently released its third quarter report. By the end of this year, Gastar says it will have nine Marcellus wells in full production and online with another 10 wells drilled and awaiting completion. Weather damage to a pipeline caused a decrease in output for two wells for about a month (end of September to end of October). Details of Gastar’s Marcellus operations in West Virginia and Pennsylvania follow: