Hydraulic Fracturing

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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…
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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…
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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…
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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…
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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…
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    Reminder: Ben Franklin Shale Gas Contest Deadline is Feb 1

    MDN previously told you about the Ben Franklin Shale Gas Innovation and Commercialization Center’s $100,000 contest (see 2014 Ben Franklin Shale Gas Contest – $100K in Cash Prizes!). A gentle reminder that the Institute’s deadline to apply to receive one of four $25K prizes for an up-and-coming innovator is quickly approaching–February 1st. Here’s more details from the Institute:
    Read More “Reminder: Ben Franklin Shale Gas Contest Deadline is Feb 1”

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    Breaking: NY Court Decisions in Binghamton & Sidney Cases

    exclusiveAn important development in two New York court cases that potentially impacts shale drilling in the state–and no, neither is (directly) about the Dryden or Middlefield town ban cases currently before New York’s highest court, the Court of Appeals. The two cases we’re referring to are (1) the City of Binghamton and their ill-fated “moratorium” thrown out by a lower court judge in 2012 and subsequently appealed, and (2) a similar moratorium in the Town of Sidney, NY.

    In the Binghamton case, the appeal of the tossed-out fracking moratorium authored by anti-drilling husband and wife team of David and Helen Slottje has been withdrawn–so that case is now officially ended and the moratorium remains tossed and unenforceable. This is big news with big implications. In the case of Sidney, the judge in that case (different judge from the Binghamton case) issued a decision yesterday, but as of the time we wrote and posted this story, we still do not have a copy of the decision. We’ll post it as soon as we get it. Let’s dive deeper into both cases…

    (Important update at the end of this article)
    Read More “Breaking: NY Court Decisions in Binghamton & Sidney Cases”

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    PA Democrat Gov Candidates Support Partial/Full Moratorium

    Last night, eight Democrat candidates participated in a forum in Philadelphia, all of them seeking the Democrat nomination for governor to run this November. Pay close attention: Seven of the eight support a shale drilling moratorium–either statewide or in certain parts of the state. This is profoundly bad news if the good citizens of PA are unwise enough to elect one of them to the governorship.

    If you want a good idea of the calamity that awaits PA in choosing a Democrat governor, House and Senate, PLEASE read (or re-read) MDN contributor Chris Acker’s article here: Guest Post: Pennsylvania Drilling Moratorium – Good or Bad?. Here’s how it played out last night in Philly with regard to Democrat support for a moratorium on shale drilling:
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    New Fracking Book from ABA Good for Lawyers & Laymen Alike

    The American Bar Association has just published a new book on fracking titled “Beyond the Fracking Wars.” According to the press announcement, the book ($119) strikes a balance between the legal, regulatory, social and technical aspects of fracking. It further explains the numerous policy choices and decisions that influence fracking development and expansion, taking an approach that is neither pro- nor anti-fracking. A “just the facts, ma’am” kind of book.

    The ABA announcement:
    Read More “New Fracking Book from ABA Good for Lawyers & Laymen Alike”

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    PA Dems Lick Their Chops over Chance to Tax Marcellus Drilling

    Sad and tragic is how we would term it. Pennsylvania’s elected Democrats in both the House and Senate are licking their chops, salivating at the chance to get rid of a mostly fair fee/tax on the Marcellus drilling industry–the “impact fee” created under the now largely gutted Act 13–and replace it instead with a harmful, regressive severance tax they can use to endlessly fund their pork barrel projects and frankly, line their own pockets. The Dems are almost like kids at Christmas, jumping up and down can’t wait to open the presents happy over the possibilities…
    Read More “PA Dems Lick Their Chops over Chance to Tax Marcellus Drilling”

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    Industry Vet Points Out Error in PA Supreme Court Act 13 Ruling

    Timothy Merrill, a now-retired resident of western Pennsylvania who worked 40 years as a buyer and marketer in the natural gas industry, wrote a sterling analysis of the Act 13 decision by the PA Supreme Court a few days ago in the Pittsburgh Post-Gazette. In his article, Merrill points out the whopping error upon which Chief Justice Ron Castille (a Republican!) based his decision. Castille states in his decision he believes drilling and fracking are inherently harmful to the environment. Problem is, says Merrill, there’s 60 years of drilling and fracking history in PA that proves just the opposite (something called “evidence,” Mr. Chief Justice). Unfortunately Castille, along with the three anti-drilling Democrats on the high court, have now invented new rights that didn’t exist before–creating bad case law that will have a profound impact for years to come.

    Here’s Merrill’s “what for” article that takes the disappointing Castille to the woodshed for his profound lack of judgment…
    Read More “Industry Vet Points Out Error in PA Supreme Court Act 13 Ruling”

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    Radio Disney Pressured, Pulls Out of OH O&G Education Program

    Radio Disney had been participating in a tour of elementary schools in Ohio as part of an education project that, among other things, educates kids on how oil and gas drilling and pipelines work. Called “Rocking in Ohio” the program’s intent is to foster interest in science and technology. Because the tour is sponsored by the Ohio and Gas Energy Education Program and partially funded by the drilling industry, the anti-drilling brigade came out in force and has now pressured Disney into withdrawing from the program. We can’t have the truth getting out there in song and dance, ya know!

    Few American-based media outlets are covering the story, so we have to get the Disney story from the pro-terrorist Al Jazeera America network. You know, the network that paid Al Gore a gazillion dollars for his dying Current TV network, finally making Al a rich man and giving Al Jazeera access to American airways to spread their garbage. The network that hires CNN has-beens like Soledad O’Brien to put a pretty face on an ugly network. The network that loves to air terrorists beheading people? Yeah, that network–the network owned by Middle Eastern oil sheiks who fear fracking will end their massive wealth gives us the Disney pulling out in Ohio story…
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    Philly Inquirer Misidentifies Photo in Act 13 Article

    The decision in December by the Pennsylvania Supreme Court that essentially guts large portions of the Act 13 Marcellus drilling legislation that all of a sudden anti-drillers have started calling Gov. Tom Corbetts “signature legislation” (funny how they never called it that prior to the ruling in December), continues to stir controversy. Gov. Corbett’s administration has filed a motion with the court to have it reconsider parts of their decision and in the meantime has asked drillers to voluntarily obey certain provisions in the law, like drilling at least 300 feet away from certain areas (see Gov Corbett Requests Drillers Continue to Honor Act 13 Setbacks).

    The Philadelphia Inquirer ran an article yesterday with more analysis of the decision and its repercussions. Interestingly, they either mistakenly, or more likely intentionally, ran a huge picture over the article of what appears to be a large crowd of protesters outside of the Philly Convention Center and identified the picture as being from a protest rally “last year.” It was not. How do we know? MDN editor Jim Willis was there–at the Shale Insight event–and there were no protests last year. There were perhaps a half dozen people standing around with signs at one point. The protest rally in the picture was from two years ago (Jim attended the Shale Insight event two years ago too)–which tells you something. The Marcellus protest movement in PA is losing steam–but it seems the Philly Inquirer editors are happy to lie to support their narrative…
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