ODNR’s Proposed New Water Handling Rules for 2014
Here’s a look at proposed new rules and regulations coming to drillers in Ohio’s Utica Shale–this year:
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ODNR Chief Says Utica Shale is “Real Deal” & Feds Should Stay Out
James Zehringer, director of the Ohio Department of Natural Resources (ODNR) recently said that the Utica Shale “is the real deal.” By which he meant the Utica is here to stay and a serious shale play, getting a lot of attention (and development). It was only 15 months ago that there was plenty of angst about the Utica because it wasn’t as “oily” as some had hoped. In fact, at the time, Reuters pronounced the Utica a bust (see Reuters Says Utica Shale Boom is Really a Secret Bust). My oh my how wrong they were!
Just in case there’s any lingering doubt (for people like Reuters reporters), Zehringer set out to dispel the naysayers. In his recent remarks, Zehringer also said the feds should mind their own business and leave oil and gas regulation to the states, where it belongs…
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PA’s Impact Fee in Jeopardy from Supreme Court’s Act 13 Decision
The decision of the PA Supreme Court to invalidate large portions of the 2012 Act 13 Marcellus drilling law, particularly those portions dealing with zoning, have left much of the law–perhaps the entire law–in doubt. The court’s decision was like an explosion, and we’re just now seeing the mushroom cloud but haven’t felt the fallout just yet. Did the Supremes just destroy shale drilling in PA? Is their decision really no big deal? It all depends on whom you ask.
One thing that appears to be in jeopardy is the impact fee/tax that’s already raised over $400 million in the last two years. A lot of that fee gets distributed to the places impacted by drilling, hence its name. It’s a sensible fee notwithstanding our objection that 40% of it goes to politicians to spend in non-drilling parts of the state. However, high court’s decision throws the future of the impact fee into doubt. Last week Gov. Tom Corbett’s administration asked the Supreme Court to reconsider its decision and further clarify some issues in hopes the impact fee (among other things) can be retained…
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PA Drill Equipment Company Predicts Diesel Rigs Gone in 5 Years
For some time now MDN has written about Marcellus drillers who now use dual-fuel drilling rigs–rigs whose big engines are powered by a blend of diesel fuel and natural gas, with some drillers using 100% natural gas-powered engines (see this list of MDN stories). Three weeks ago, CONSOL Energy announced a first–they will use electric motors for drilling near the Pittsburgh Airport (see CONSOL to Use Electric Motors for Drilling at Pittsburgh Airport).
One of the primary suppliers of drilling equipment for Marcellus and Utica drillers, Keystone Drill Services in Somerset County, PA, recently made this startling prediction: Within five years diesel-powered engines will be gone from drill sites. Keystone should know since they’re creating the future now at their Somerset facility…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA
AP Drive-By Article Says Drilling Pollutes Water Wells
A classic example of mainstream media’s drive-by murder of the truth has happened yet again–at the hands of the Associated Press (hitman: Kevin Begos). The introduction to the most recent hit piece (read it below) is that the AP has done extensive “research” (which is, of course, laughable) into all of these numerous cases of potential water contamination by oil and gas drilling and by golly some of those cases are true–oil and gas drilling polluted some people’s well water. Never mind what kind of pollution, the water was polluted and that’s all you need to know.
Near the end of the article the mountain of evidence is offered–and what do we find? A statistically infinitesimally small number of complaints about well water contamination, very few of which were proven to be true. So the opening paragraphs are a clever deception, but most people don’t bother to read down to the point where the truth is revealed–and some may not even grasp the truth when they do read it. This one story, written by a reporter with an anti-drilling agenda, is reprinted ad nauseum in hundreds of local newspapers across the country that never bother to question its veracity or attempt to verify the facts. Welcome to Propaganda 101…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation
Third Time the Charm? Youngstown Anti-Drillers Try Again for Ban
The crazies are back in Youngstown, OH–or more properly, they never left. Anti-drillers couldn’t get the good citizens of Youngstown to vote in favor of a frack ban twice in a row, but that doesn’t stop zealots like members of FrackFree Mahoning Valley from trying again. They’re back at it, circulating a petition that–for a third time–asks residents to put the same tired old “ban fracking” measure on the ballot for a vote. After twice being voted down in large numbers. The nutters call it a “Bill of Rights” hoping to fool people. Call the measure what you want–its effect would be to shut down Youngstown from the drilling industry and deny residents the multitude of benefits they now get from Utica drilling (jobs and business tax revenue).
But hey, it’s (still) America where fruitcakes have the freedom to do what they want–including pestering their neighbors to sign a petition circulated twice before. Our advice: If one of the FrackFree Mahoning fruitcakes comes knocking on your door–hand them the fruitcake you got for Christmas and still haven’t eaten, and send them packing…
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MDN’s Top 10 Most Important Stories of 2013 – Our View
Yes it’s trite and certainly overdone, but hey, it’s the last day of 2013 and a slow news day. So MDN editor Jim Willis thought he would put together a list of what he considered to be the top 10 Marcellus and Utica Shale stories from 2013. It’s a look into what we believe, based on your input and feedback, to be the most relevant and important stories from this year. Enjoy!…
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Peer-Reviewed Fracking Survey Peers into U.S. Minds, and Finds…
A new survey of Americans on the topic of fracking appears in the upcoming February issue of the peer-reviewed journal Energy Policy. The survey, titled “Fracking” controversy and communication: Using national survey data to understand public perceptions of hydraulic fracturing (full draft copy embedded below) was actually conducted in September 2012–so the data is already quite old. Apparently 15 months is how long it takes to get your articles reviewed by journals like Energy Policy. A lot has happened in the last 15 months: FrackNation and Gasland II were both released, Dimock faded away as an issue, Pennsylvania’s natural gas production more than doubled, the U.S. became the world’s #1 producer of both natural gas and oil–the list goes on. Still, the survey is interesting and yields confirmation of what we already know along with the odd insight into what can be used as a predictor of whether or not someone will support fracking and shale drilling.
For example, if you’re conservative, educated and like to let the free market determine which energy sources should win, you support fracking. Conversely, if you’re liberal, less educated and like the idea of government picking the winners (that is, you have a touch of fascism in your philosophy), you don’t support fracking. If you’ve been reading MDN for any length of time, you already know all of this. The benefit of this particular survey is the scientific “rigor” used in testing which characteristics are good predictors of support or lack of support–and which characteristics are not good predictors. That’s what is interesting to MDN about this particular study.
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County | WPX Energy
Hanger Continues to Use Franklin Forks Water as Campaign Issue
As MDN has previously pointed out, former Secretary of the PA Dept. of Environmental Protection (DEP) John Hanger is trying to make political hay out of methane in the water supply of three families in Franklin Forks (Susquehanna County), PA (see John Hanger Uses Franklin Forks Water Issue to Boost Gov Campaign). Which is kind of ironic since Hanger himself was raked over the coals by his own liberal buddies in Gasland for his handling of the same issue about 15 miles away in Dimock, PA. Hanger claims the DEP’s 16-month investigation in Franklin Forks was not independent enough for his taste. The DEP has fired back at their old boss and said they didn’t just rely on WPX’s investigation (as Hanger claims) but that they also conducted their own independent investigation and that Hanger is just making noise to, as we put it, boost his failing campaign for governor.The sentiment coming from the DEP seems to be, “thanks for your unhelpful assistance John–now butt out”…
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Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Lenape Resources | Livingston County | New York | Regulation | Statewide NY
NY’s Ongoing War Against Natural Gas – An Update
Lenape Resources is one of MDN’s favorite NY-based energy companies. We’ve heard their CEO John Holko speak at events touting the benefits of shale drilling in NY. John doesn’t just say good things about drilling, he puts his money (and his time) into the cause as well. In 2012 Lenape sued the Town of Avon, NY (Livingston County) over their hastily passed fracking ban, a ban that not only bans horizontal or shale fracking (which isn’t even allowed in NY) but also ended up banning vertical fracking in the town, something that’s been going on in NY for more than 40 years. Lenape lost the case in lower court and appealed it (see Lenape Appeals Ruling, Seeks to Overturn Frack Ban in Avon, NY).
In its heyday, before the NY frack moratorium that’s now 5 1/2 years old, Lenape employed 100 people. Today? They have 5 people. Sound familiar (cough *Norse Energy* cough)? NY is driving energy companies out of business with ongoing hostility by municipalities like Avon and with delays by the state. NY is about as business unfriendly as you get. Here’s an AP update on Lenape and the ongoing negative impact of the frack moratorium in NY:
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Does PA Supreme Court Act 13 Decision Affect NY Cases?
Apparently there’s been some concern, confusion and downright misleading information circulating since the recent PA Supreme Court decision that grants municipalities in PA the right to continue zoning where shale drilling can and cannot take place (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). Some have tried to draw parallels between the “Dryden” and “Middlefield” cases now before the NY Court of Appeals (NY’s highest court) and the decision by the PA Supreme Court, because both involve issues of home rule or the right of localities to impose zoning on oil and gas drilling.
Even though both the PA Act 13 and the NY Dryden/Middlefield cases are both home rule cases, they are nothing alike and the PA case in no way impacts or affects the NY case. Perhaps the biggest difference between the PA and NY cases is this: In PA even though municipalities can now legally zone for oil and gas drilling, they must still allow oil and gas drilling in at least one zone. In NY, towns have completely banned drilling throughout the entire (rural) township. Huge difference. And there are other differences. Because of the ongoing confusion, the pro-drilling attorney for the Middlefield case, Scott Kurkoski, issued the following statement on the JLCNY website to clear the air and set the record straight…
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Anti-Drilling/Fossil Fuel | Guest Post | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY
NY’s Albany Anti-Frack Protest – Made Possible by Natural Gas
Not only are the crazies marching in Maryland (see today’s story Maryland Anti-Fracking “Madness” Continues – Crazies on the March), they’re also about to descend on Albany, NY. MDN friend and occasional guest blogger Vic Furman, a retired IBMer and one of the leaders of the Joint Landowners Coalition of New York, provided the article below pointing out the hypocrisy of those who oppose shale drilling. Vic says that in nine days when anti-drilling protesters arrive in Albany (many from out of state), they will do so because natural gas and oil from shale drilling made it possible for them to be there.
Take time to read Vic’s post and consider the salient points he makes:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD
Maryland Anti-Fracking “Madness” Continues – Crazies on the March
The anti-drilling crazies in Maryland are on the march, literally! A coalition of extremist so-called “environmental” groups plan to march on Annapolis on the opening day of the General Assembly session to urge legislators to ban shale drilling. No, they are not demanding a moratorium–they are demanding an outright and permanent ban on fracking. How do you reason with unreasonable people? You don’t. You defeat them. And that’s what pro-drilling and clear-thinking people must do in Maryland. There is no sane debate with a crazy people.
Here’s a Maryland “madness” update:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Monroe County | Pennsylvania | Regulation
PA Town in Poconos Symbolically Votes to Condemn Fracking
The day before the PA Supreme Court ruled that towns must allow fracking but can impose their own zoning rules about where it is and isn’t used, the Stroudsburg Borough Council voted, unanimously, to pass a resolution (or depending on your news source, ordinance) that “condemns” fracking. Stroudsburg is located about five miles from the Delaware Water Gap in Monroe County, PA. It’s debatable whether or not there’s anything to frack under Stoudsburg. Because the borough is in the Delaware River Basin the DRBC doesn’t yet allow drilling there anyway–so the vote was purely symbolic.
The ring leader seems to be outgoing councilwoman Kathleen Lockwood who has proven her ignorance on the subject of fracking with her public comments on the matter (see below). Since this was a symbolic vote, we nominate Ms. Lockwood to symbolically remove herself from using all natural gas–she should quit heating her home with it, quit using it to cook her food, and quit using electricity in her home produced by using natural gas–you know, to show the rest of us her resolve in opposing fracking. If fracking is so bad and evil, surely she would want to quit using the results of that fracking–natural gas–right? What’s that? Not so fast? Let’s not be hasty now! Yeah, that’s what we thought…
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Fitch Ratings Says PA Court Decision Translates to Less Production
Elections–and court cases–have consequences. You tax something more, you get less of it. You regulate something more, you get less of it. When there’s less of something, prices for it go up. Fitch Ratings–one of the largest and most prestigious rating agencies in the world–has just weighed in on the ruling by the PA Supreme Court that throws out portions of the Act 13 drilling law (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). According to Fitch, more local regulation of PA’s oil and gas drilling will result in less production. You don’t normally think of Fitch as being in the oil and gas production prediction game–that’s more the purview of the Energy Information Administration (EIA). However, Fitch says the recent PA ruling will almost certainly mean less production coming out of PA–a sobering observation.
Fitch’s opinion counts because investors make decisions based on it. Less gas, higher prices. It also means less tax money will flow to municipalities. Pretty simple economics and Fitch is just stating the obvious. Here’s what Fitch said earlier this week about the PA court decision…
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Hydraulic Fracturing | Industrywide Issues | Monroe County (NY) | New York | Public Opinion | Regulation
Rochester Poll: Cuomo Wrong to Delay, Begin Fracking Now
Unscientific opinion survey? To be sure. But the results from a recent Rochester (NY) Business Journal poll that asks the question of whether or not Gov. Andrew Cuomo should continue to delay a decision on fracking is enlightening. Some 540 RBJ readers participated in the web-based snap poll that asked two questions about fracking. It will be no surprise to you that the vast majority of RBJ readers believe Cuomo should make a decision now–and that the decision should be to allow fracking to commence.
Most people who read the RBJ are small business people–entrepreneurs and managers and people who make things happen. In other words, they are producers–the opposite of the government-dependent leeches we tend to turn out in NY in large numbers. Producers are clear-headed–they know how to evaluate information and come to a logical conclusion. And the conclusion reached in “liberal” Rochester is this: fracking is safe, it’s time to start. Get off the pot Cuomo! Here’s the details from the RBJ snap poll:
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Yes it’s trite and certainly overdone, but hey, it’s the last day of 2013 and a slow news day. So MDN editor Jim Willis thought he would put together a list of what he considered to be the top 10 Marcellus and Utica Shale stories from 2013. It’s a look into what we believe, based on your input and feedback, to be the most relevant and important stories from this year. Enjoy!…
As MDN has previously pointed out, former Secretary of the PA Dept. of Environmental Protection (DEP) John Hanger is trying to make political hay out of methane in the water supply of three families in Franklin Forks (Susquehanna County), PA (see