Hydraulic Fracturing

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    PA DEP Extends Roadshow for Public Comment on New Drilling Rules

    Roadshow! The Pennsylvania Environmental Quality Board (EQB), a division of the state Dept. of Environmental Protection (DEP), has been in the midst of a 60-day tour, visiting different locations across the state, to elicit public comment on proposed new Marcellus Shale drilling rules called for under the Act 13 law passed in early 2012 (see PA DEP Launches Public Comments on New Drilling Rules, Roadshow).

    Must be the EQB is having fun because they’ve just extended the roadshow for another 30 days. Instead of wrapping up public comments on the proposed new drilling rules by Feb. 12, the new deadline will be Mar. 14. Oh, and they’ve added a couple of more stops to the roadshow tour: Troy and Warren, PA. Here’s the EQB roadshow extension announcement:
    Read More “PA DEP Extends Roadshow for Public Comment on New Drilling Rules”

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    CSSD Makes Case for Quasi-Regulation of Marcellus Drilling

    Yesterday MDN told you that the Center for Sustainable Shale Development (the CSSD) is back, in a big way (see Center for Sustainable Shale Comes Roaring Back (to Life)). About the time we posted that story, we received a number of announcements from the CSSD. One of those announcements was about a session for the press–to listen to and ask questions of CSSD interim director Andrew Place (from EQT) and former governor and EPA administrator Christine Todd Whitman. MDN dialed in to listen, this is what we heard…
    Read More “CSSD Makes Case for Quasi-Regulation of Marcellus Drilling”

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    Are CSSD’s Standards Really Needed? Comparison with PA/OH/WV/Feds

    The Center for Sustainable Shale Development (CSSD) has a big hurdle to leap–convincing drillers to spend a lot of money and time (up to $50,000 and hundreds of hours) to become CSSD certified–and then ongoing monitoring to keep that certification. They’re using a carrot and stick. The carrot is that if you become certified, you’re elite, you’re “in”, you’re special–and landowners will be able to trust you. You’ll have the “Goodhouskeeping seal of approval” on your drilling because you’ve got the cert. The stick is that if you don’t get certified, you’re suspect, you’re in the “out” crowd, you’re not “one of us” and therefore landowners should be wary of signing a lease to have you drill on their property.

    Beyond the perceptions, the real question is whether or not the standards themselves will achieve what they say they will achieve–safer and “sustainable” drilling that does a minimum amount of damage to the environment while retrieving low-cost, more efficient and better for the environment natural gas. But wait (you may ask), don’t the states and even the feds already have a bookshelf full of standards and regulations drillers must follow? Indeed they do. The CSSD says, in essence, those standards are fine, but our (CSSD) standards are far better. The crux of the CSSD argument is that you should voluntarily (with peer pressure and cajoling) follow our standards because we have PA, OH, WV and even the feds beat on how strict and yummy good for the environment our standards are over theirs. In fact, the CSSD has produced a chart (embedded below) to “prove” it…
    Read More “Are CSSD’s Standards Really Needed? Comparison with PA/OH/WV/Feds”

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    Minnesota Film Festival Bows to Pressure, Censors FrackNation

    It looks like the peace-loving, open-minded, love and daisies anti-drilling liberals have bullied another venue into dropping a screening of the pro-drilling (and highly recommend) FrackNation. The Frozen River Film Festival in Winona, MN said they had been pressured by libs from Mountain Film in Telluride and the Sundance Film Festival. And so they caved and went running with their tail between their legs instead of standing up for free speech and an alternative view.

    Ever notice how free speech only applies when mouthy anti-drillers want to shut down a public meeting or show their propaganda somewhere–but when the other side wants to talk or show a film, it’s “off with their heads!” Hypocrites–the lot of them. Here’s an update from MDN friend and FrackNation director and star Phelim McAleer about Frozen River Film Festival’s censorship of his film…
    Read More “Minnesota Film Festival Bows to Pressure, Censors FrackNation”

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    Center for Sustainable Shale Comes Roaring Back (to Life)

    roaring backFinally, signs of life from the Center for Sustainable Shale Development (CSSD), a new independent certification organization for Marcellus Shale drillers launched with much fanfare in March of last year. Both drillers and environmentalist organizations, along with non-profits like the mostly anti-drilling Heinz Endowments, cooperated to develop a set of 15 standards drillers should meet to receive the CSSD’s official stamp of approval (see Important: Drillers & Enviros Form New Group, Launch Cert Program for MDN’s mixed feelings about the organization and its standards). Heinz Endowments president Bobby Vagt lost his job for promoting the CSSD (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?).

    Since launching, aside from the Vagt/Heinz flap, all has been quiet with the CSSD. However, the CSSD was busy working behind the scenes. From the beginning, Andrew Place, corporate director of energy and environmental policy for EQT has served as interim director of the CSSD. News reports are now coming fast and furious. First, environmentalist lawyer Susan LeGros from Philadelphia has been named the director of the CSSD. She’ll be making a move to Pittsburgh where CSSD HQ is located. Second, Bureau Veritas (BV) has been selected as the company to audit/evaluate companies that want to spend the $30-$100K required to become certified. After they evaluate, a 3-member panel will decide on whether they get the stamp of approval. Two of those three people are Christy Todd Whitman, former governor of NJ and former EPA chief, and former Treasury Secretary Paul O’Neill. Third, it appears to MDN that no one else has joined the CSSD beyond the initial handful of signups (Shell, EQT, Chevron, CONSOL Energy), and that no one has sought certification–although that may change now that the cert process is up and running…
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    Deloitte’s View: 2014 Spending Shifts from Upstream to Midstream

    From time to time it’s helpful to zoom out to the “40,000-foot view” of the oil and gas industry, because understanding the bigger picture helps us understand the smaller picture that MDN concentrates on–the Marcellus and Utica Shale. One of the better analysts of the bigger picture (in our humble opinion) is consulting powerhouse Deloitte. John England, Deloitte’s U.S. Oil & Gas leader, recently posted a 40,000-foot view of what’s happening in the oil and gas sector in the U.S.–and where he believes it’s headed in 2014.

    England, quoting the Oil & Gas Journal, says E&P (exploration and production) spending in the U.S. was $354.8 billion in 2013. However, spending on the midstream–the pipelines and processing plants that get all of that production to market–was only $46.4 billion in 2013 (although that’s up 360% from the $12.8 billion spent on midstream in 2012). England says as we head into 2014, look for investments to continue shifting from the upstream sector (E&P) to the midstream sector–to infrastructure like pipelines and processing plants, refinery operations, and petrochemical facilities. MDN concurs. Just reference our massive list of 111 midstream/infrastructure projects underway or planned in the Marcellus/Utica (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). Here’s England’s take on where we’ve been, and where we’re headed in 2014…
    Read More “Deloitte’s View: 2014 Spending Shifts from Upstream to Midstream”

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    “Enviro” Groups: Keep Acid Mine Drainage So Drillers Can’t Use It

    How to Be Your Own Selfish PigGet this: Environmentalists (like those at PennEnvironment) hate fossil fuels from shale drilling so much, they would rather have millions of gallons of acid mine drainage pour into creeks and rivers in PA every day rather than let shale drillers use that drainage as a fracking fluid–thereby freeing up fresh water sources and solving one of the state’s most pernicious long-term pollution problems. Anti-drillers can’t stand the idea that drillers might, in any way, be perceived as helping the environment. Talk about selfish pigs.

    The residents in PA should be outraged at the 35 groups listed below, including PennEnvironment, that sent a letter last Thursday to political leaders asking them to abandon support for one of the best ideas to roll around in generations–cleaning up acid mine drainage by using it as a fracking fluid…
    Read More ““Enviro” Groups: Keep Acid Mine Drainage So Drillers Can’t Use It”

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    Article Falsely Implies Driller Interested in S Maryland Drilling

    A highly misleading headline (and article) running in an AOL-based “local” Patch publication trumpets, “Energy Company Eyeing Gas Basin that Runs Under Southern Maryland.” The “deck” or smaller headline under it goes on to reinforce this misconception by saying, “A gas basin underneath five counties in Southern Maryland is drawing a Texas-based energy company’s attention.” Both statements are, in a way true. However, the impression they leave–that a Texas driller is actively looking to lease land in southern MD for shale drilling, is 100% false. Hence another propaganda campaign is born by another anti-drilling “reporter.”

    This particular falsehood is aimed at whipping up Marylanders against common sense regulations that would allow shale drilling in the Marcellus–which is only found under parts of two MD counties in extreme western Maryland’s panhandle area–Garrett and Allegany counties. Landowners in that area have been stymied almost as along as landowners in New York State–locked in an ongoing moratorium while politicians dither and preen. MDN has already told you about the shale basin mentioned in this new Patch story which drillers want to tap–in Virginia (see Fracking Finally on the Way in Virginia? Maybe Yes, Maybe No). The same basin underlying parts of VA, called the Taylorsville, underlies a few counties in southern MD too. But not one driller has mentioned leasing any land in anti-drilling MD. Quite the opposite–they’re staying away from Maryland like it’s radioactive…
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    Fracking Justice Denied NY Landowners Yet Again Thanks to NY AG

    justice delayed is justice deniedA liberal New York judge has just just granted New York State an additional month and a half to get their act together to respond to the Article 78 lawsuit filed by attorney Tom West on behalf Norse Energy. You may recall West filed the lawsuit in the middle of December in an attempt to force Gov. Andrew Cuomo, DEC Commissioner Joe Martens, and Health Commissioner Nirav Shah to actually do their jobs (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs). It’s been 5 1/2 long years and the state continues to intentionally delay the release of fracking regulations–the delay, which is now obvious to everyone, is for political reasons. The delays eventually sent Norse Energy into bankruptcy. The company can’t even sell their leases via auction to compensate shafted investors because of the continuing delay by Cuomo. West was hired to force the governor and his minions to suck it up and do their jobs.

    How does the state respond? Cuomo’s Attorney General Eric Schneiderman (a strong anti-driller himself) has found a sympathetic lib judge to, incredibly, further delay! Until March 7 (instead of the scheduled January 24)–to give the state “more time” to…I don’t know, to do what? Make more coffee runs to Dunkin Donuts? Apparently 5 1/2 years isn’t enough time! West said it’s this very kind of delay tactic that prompted Norse to file the lawsuit in the first place! So now, justice is delayed yet again. You know the old saying, justice delayed is justice denied. Landowners in NY have certainly been denied justice under this corrupt governor and his AG…
    Read More “Fracking Justice Denied NY Landowners Yet Again Thanks to NY AG”

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    BP’s Annual Energy Outlook Through 2035 – Fool’s Errand?

    Yesterday BP, a huge driller with a sizable acreage position in the Utica Shale (84,000 leased acres), issued its annual BP Energy Outlook 2035 (full copy embedded below). The 96-page report sets out BP’s view of the most likely developments in global energy markets to 2035, based on up-to-date analyses. BP experts expect global energy demand to rise 41% from now until 2035 with 95% of that growth coming from “emerging economies.” According to BP, gas as a source of energy is growing fastest among the fossil fuels and by 2035 gas is expected to be at parity with coal–each providing about 27% of power needs in 2035. BP says shale gas will make up 68% of U.S. gas production by 2035.

    Of course, all of this speculation is fun to read, but frankly is just so much folly. MDN editor Jim Willis heard Charif Souki, CEO of Cheniere Energy address the predictions game at the Platts Global Energy Forum in New York City last December (see Energy Industry Leaders Gather at Platts Forum in NYC). At that forum, Souki said any kind of prediction beyond 2-3 years in the rapidly changing energy industry is meaningless. He said if you go back 20 years and look at those predictions about today, none of them predicted shale and how the industry would change so dramatically. We concur with Souki–making these kinds of predictions is a fool’s errand. Still, it’s fun to read and muse about what might be…
    Read More “BP’s Annual Energy Outlook Through 2035 – Fool’s Errand?”

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    Quarterly OH Utica Shale Report from CSU: Huge Economic Impact

    Each quarter, researchers at Cleveland State University publish the Ohio Utica Shale Gas Monitor, a report that looks at the economic impacts of Utica and Marcellus Shale drilling in Ohio. The latest report was issued a few weeks ago and MDN has just now been able to locate a copy to share with you (full copy of the 39-page report embedded below). What does the report tell us? The number of counties with “strong” shale activity has gone to eight from 15, and the number of counties with “moderate” shale drilling activity has gone to five from 30. That’s a head-turner! The “strong” counties, in addition to producing methane (or dry gas), are also producing “commercial amounts” of natural gas liquids (wet gas).

    Here’s a good overview of the report as provided by NortheastPA.com:
    Read More “Quarterly OH Utica Shale Report from CSU: Huge Economic Impact”

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    NY Judge Tosses Out Sidney Moratorium Law for Procedural Issues

    sort-of-smile faceIt was a good day for New York landowners and pro-drillers yesterday. MDN told you on Monday that we had confirmed a decision had been made in the lawsuit brought by landowners in Delaware County against the Town of Sidney, NY for passing a moratorium on fracking (see Breaking: NY Court Decisions in Binghamton & Sidney Cases). We knew there had been a decision by Supreme Court Judge John F. Lambert–we just didn’t know what the decision was.

    MDN received a copy of the decision yesterday (full copy embedded below) and it’s good news for landowners. The moratorium law was ruled “invalid”–but not because it was a moratorium. The law was tossed out because of the way it was enacted–for procedural issues. In fact, Judge Lambert was careful in his decision to point out that, “…the court has not addressed the moratorium issue.” So although this was a good decision and a reason to be happy, it wasn’t a jump-up-and-down-let’s-celebrate decision that seals of the fate of fracking moratoriums in NY. It occupies the middle ground on the happy face scale for us…
    Read More “NY Judge Tosses Out Sidney Moratorium Law for Procedural Issues”

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    Binghamton’s New Mayor Fesses Up to Withdrawing Moratorium Appeal

    Yesterday MDN told you the great news that the City of Binghamton had withdrawn its appeal of a court decision overturning the moratorium passed by an all-Democrat City Council and mayor at the eleventh hour in 2011 (see Breaking: NY Court Decisions in Binghamton & Sidney Cases). As we said yesterday, the interesting aspect of the Binghamton development is the timing–coming so close to a new mayor taking office. We said it sure looks like new Republican Mayor Rich David played an important role in the decision to withdraw the appeal. We were right.

    MDN contacted the mayor’s office and we were told he’s traveling at the moment and would respond upon his return. However, a few hours later his office issued the following statement in which Mayor David lays out the timeline and his role in ending the long, drawn-out process. David came down on the side of landowners and pro-drillers–so three cheers for Mayor David! Here’s the statement issued by his office midday yesterday:
    Read More “Binghamton’s New Mayor Fesses Up to Withdrawing Moratorium Appeal”

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    Frack Tank Explosion in Tyler County Shuts Down Jay-Bee Pad

    Try as we might, sometimes an important news story slips by our otherwise keen eye on the Marcellus and Utica. Case in point: On Jan. 2 there was a rare accident at a shale drilling site in Tyler County, WV, a drill site operated by WV-based Jay-Bee Oil & Gas. A flow-back tank on the drill pad exploded, injuring a worker at the site and causing the spill of a “black sludge” onto a neighboring field. The West Virginia Dept. of Environmental Protection (DEP) shut down the Lisby drill pad operation, which is located along Big Run Road, roughly 6 miles southeast of Middlebourne, WV, and issued Jay-Bee a citation over the incident.

    Jay-Bee was supposed to have provided a report to the DEP by yesterday outlining what happened and why. The DEP is also requiring Jay-Bee to provide a best management practices plan for flow-back tank systems at all of its operations in WV. In other words, Jay-Bee is now on the hot seat and needs to prove to the DEP that they can operate safely. Here’s what we can so far find about the accident, including the WVDEP’s statement about it…
    Read More “Frack Tank Explosion in Tyler County Shuts Down Jay-Bee Pad”

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    Bobby Vagt Leaves Heinz, Will Become Chairman of Rice Energy

    Looks like Bobby Vagt, current and soon to be former president of the Heinz Endowments, will get the last laugh. Vagt, you may recall, announced his “retirement” as president of the Heinz Endowments in October of last year. It has never been confirmed, but there’s plenty of anecdotal evidence to suggest mommie dearest Teresa Heinz Kerry bounced him out for his participation in helping to form the Center for Sustainable Shale Development (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?). Momma Teresa never gave Bobby permission to get that cozy with the drilling industry, and that, dear friends, was a no-no for Bobby.

    So Bobby is taking off. And where is he going? To become chairman of the board at Rice Energy, once they complete their IPO (see Rice Energy Launches IPO, Hopes to Raise $840M). Bobby is already a wealthy man, but helping to steer the direction of Rice Energy will no doubt make him a lot wealthier. Which is amusing to MDN. You see, Bobby is making his money the old-fashioned way–he’s earning it. Momma Teresa made her money the liberal way–she married it. Here’s the story about Bobby saying bye-bye to Teresa and heading off to (much) greener pastures…
    Read More “Bobby Vagt Leaves Heinz, Will Become Chairman of Rice Energy”