Industrywide Issues

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    FANG Protesters Chain Themselves to RI Compressor Station Gate

    FANG logoLet’s talk about optics and the strategies employed by fossil fuel haters. We’ll leave aside our standard argument that people who hate fossil fuels, like natural gas, are wildly hypocritical as their very existence is a direct result of the benefits of fossil fuels. Today we focus on two men who hit life’s lottery–one (younger) became a pediatrician, the other (older) a physics professor. Last week the two chained themselves to the entrance of Spectra Energy’s Burrillville, Rhode Island compressor station to call attention to Spectra’s Algonquin Incremental Market (AIM) project to beef up the compressor station and add pipelines to bring more cheap, abundant, clean-burning Marcellus Shale natural gas to gas-starved Rhode Island and other New England states. The two protesters belong to a fossil fuel hate group called FANG–Fighting Against Natural Gas. Using PVC pipe, chicken wire and (yes) tar, they intertwined their arms to make it extremely difficult to un-knot them. The police had to cut away a section of the fence and cart the fence and the two protesters to the hospital where doctors and nurses had to waste time untangling the mess. The optics, of course, is that FANG wants you to hear about a doctor and a physics professor (supposedly smart people) who put themselves in harm’s way to protest something–so the something must be evil and rotten since these two virtuous “high value” (and smarter than the rest of us) members of society are sounding the alarm. We think you should focus on different optics–the logo/mascot FANG uses on their website (pictured here, taken from their website). A wolf bearing its fangs indicates extreme danger–and a willingness to go to extremes to cause property, and perhaps even bodily, damage. Homeland Security should take note…
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    OH Anti-Drilling November Ballot Measures Tossed in 3 Counties

    Anti-drillers in Ohio are persistent–we’ll grant them that. Local anti-drillers in three Ohio counties–Athens, Fulton and Medina–have been hoodwinked (are being used by) Big Green groups like the Community Environmental Legal Defense Fund (CELDF), attempting to get so-called Community Bill of Rights measures on the ballot in those counties. Problem is, the Ohio Supreme Court has already ruled such measures unconstitutional (see OH Supreme Court Strikes Down Home Rule in Gas Drilling Case). And yet, certain counties with high concentrations of wackos keep trying again and again and again–even though the very same type of measure has already been ruled illegal. What was that definition of insanity promulgated by Albert Einstein? “Insanity: doing the same thing over and over again and expecting different results.” That about sums up the latest efforts by Athens, Fulton and Median county anti-drillers. They’ve filed petitions with enough signatures to once again put so-called “home rule” measures on the ballot. But this time officials in those three counties appealed to the Ohio Secretary of State who has ruled, striking down the ballot measures. A small victory for sanity in Ohio…
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    WV Shale Drillers: New Safety Regs on the Way in 2016

    Drillers in West Virginia–you’re on notice that Gov. Earl Ray Tomblin thinks it’s time to make shale drilling in the Mountain State safer than it is right now. Translation: new regulations will be coming at you in the 2016 legislative session. Tomblin formed the 19-member Oil and Natural Gas Industry Safety Commission with an executive order (see WV Establishes New Commission to Study Drilling/Pipeline Safety). The aim of the group is to present a list of recommendations in a final report on Nov. 16–a list that will be used to craft new rules and regulations and laws to be presented during next year’s legislative session. Now is the time for drillers to participate in the process. The kickoff session spent much the time reviewing previous accidents and dangers associated with oil and gas drilling…
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    Cenergy Expands in WV for 4th Time; Gov Tomblin Celebrates

    Founded in 2006, Cenergy is a West Virginia-based contractor for the natural gas industry providing turn-key facility and equipment engineering and fabrication for natural gas producers in West Virginia, Ohio and Pennsylvania. The Cabell County company last week held a grand opening for an expansion at its Milton, WV facility. Special guest of honor: WV Gov. Earl Ray Tomblin. Gov. Tomblin was there to brag that WV held on to Cenergy and the extra jobs that come with the new expansion. The young-but-rapidly-growing company has expanded four times in Milton and currently employs 170 people, many of them welders…
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    When Will There be Enough Pipelines in the Marcellus/Utica?

    How low can and will prices go in the Marcellus/Utica? Without pipelines like the Constitution, Northeast Energy Direct and Access Northeast (among others), prices for natgas in the Marcellus/Utica can and will go pretty low. Would you believe the price of natural gas selling at the Dominion South trading point in southwestern Pennsylvania briefly hit $0.71 (yes, 71 cents) per thousand cubic feet in early July? Would you believe there’s talk the price could even go as low as 60 cents/Mcf? That’s apocalyptic, end of any more drilling kind of prices. Without pipeline infrastructure, shale drilling shuts down. Which is why it is vital these pipelines get built. One bright spot is the recent reversal of the Rockies Express Pipeline now carting Marcellus/Utica gas to the Midwest (see 1.8 Bcf/d of Marcellus/Utica Gas Heads West on REX Starting Aug 1). Two more pipeline projects, due to be fully online in September, will also help: Spectra Energy’s Uniontown to Gas City (U2GC) Project Sunoco Logistics’ Mariner East 1 NGL pipeline from western PA to the Marcus Hook refinery near Philadelphia (see 2 Pipelines Will Raise Gas Sale Price by $1 for Range Resources). More on how pipelines are directly tied to the price of gas and the future of drilling…
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    MarkWest Sued for “Wrongful Death” in Washington, PA Car Crash

    On Saturday, Jan. 3, 2015, a MarkWest Energy truck driven by a MarkWest worker, according to court documents, failed to stop at a stop sign at the intersection of Route 136 and Brownlee Road in Washington County, PA. That failure had tragic consequences. The Chevy Silerado truck hit a tiny Ford Fiesta car and a passenger in the car, Donna Simboli, 58, was killed. A lawsuit has just been filed in Washington County on behalf of Simboli’s two children (no ages given) against MarkWest for “wrongful death”…
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    OH Minority Report: Shut Down Wells Before They Cause Earthquakes

    Minority ReportThe Chief of the Division of Oil and Gas Resources Management for the Ohio Dept. of Natural Resources (currently Rick Simmers) is a man with a lot of power. He has the power, according to a ruling just handed down on August 12, to make his own decisions about suspending permits to operate in the absence of specific violations of a law or regulation. In September 2014 Simmers suspended permits for two wastewater injection wells in Trumbull County, OH after a very low level earthquake was detected close to those wells (an earthquake that couldn’t be felt at the surface and caused no damage of any kind). American Water Management Services sued saying they hadn’t violated any laws or regulations on the books and their permits could not just be arbitrarily revoked like that. But the Ohio Oil and Gas Commission said nope–Tom Cruise, er, a, Mr. Simmers can arbitrarily do what he wants when there is no specific rule or guideline or law–because he has the best interests of the people at heart…
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    It Speaks! An “Ecosystem” has Filed to Join a Lawsuit in PA

    Better be careful, the water table running under your property may decide to sue you for sinking a water well into it and withdrawing water for drinking, showers, etc. What…Absurd? Funny? Foolish? We’re not kidding. It seems that water tables and rock and dirt are now considered “ecosystems” and, if a lawsuit is allowed to stand in a Pennsylvania court, such an “ecosystem” has the right, under law, to sue. A motion has been filed by the radical leftist PA-based group Community Environmental Legal Defense Fund (CELDF) on behalf of an ecosystem to intervene in a federal lawsuit to defend its own “right” to exist and flourish. Background: In 2013 the CELDF convinced enough ignoramuses in Highland Township in Elk County, PA to pass a so-called Community Bill of Rights. Essentially it’s a way to prevent wastewater injection wells from being drilled in the township. Seneca Resources filed a lawsuit to overturn the illegal law. Highland Twp taxpayers are now defending their illegal action with $upport from the deep pockets of Big Green groups (i.e. the CELDF). In an attempt to bully Seneca into backing down from the lawsuit, the CELDF claims to speak for the ecosystem and has filed a lawsuit on behalf of the ecosystem. It’s utter bull crap of the highest order–but a dangerous precedent if allowed. We can see your dog suing you, the trees that ring your property suing you, wrongful death lawsuits for killing a snake…you get the idea. An ecosystem filing a lawsuit would be funny, if it weren’t such a tragically vicious attack against the fabric of this country and the HUMANS that live in it (the only living things with “rights” under our Constitutional form of law)…
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    CELDF Tries to Shut Down GreenHunter’s OH Injection Wells

    The radical leftist PA-based group Community Environmental Legal Defense Fund (CELDF) is making mischief in neighboring Ohio. The CELDF is using some of its millions of Big Green dollars to file a lawsuit against Meigs County, OH Commissioners because the commissioners refuse to put an illegal ballot measure up for a vote in November. The CELDF pressured the citizens of Highland Township in Elk County, PA in 2013 to pass a so-called Community Bill of Rights–the same kind of law they want Meigs County to adopt (see today’s companion story about the ecosystem that speaks). Meigs County already has two injection wells recently brought online by GreenHunter Resources, with plans to bring another two online in the near future (see GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH). GreenHunter has built out a barge terminal along the Ohio River in Meigs County where they plan to unload barged brine for disposal (see GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells). The CELDF so-called Community Bill of Rights would stop GreenHunter’s injection wells and the barge terminal from operating. Can you imagine the lawsuits and the amount of money Meigs County residents would have to pay out if that happened? It would likely bankrupt the county. Meigs County commissioners rightly seek to protect the citizens they were elected to represent from this horrific economic apocalypse. And so now, the CELDF is suing Meigs commissioners because they won’t allow the ballot measure to proceed…
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    Is Wayne County, OH Sheriff Breaking the Law re NEXUS Pipeline?

    It appears that an anti-pipeline member of the Wayne County, OH sheriff’s department, Capt. Doug Hunter, has convinced his boss, Sheriff Travis Hutchinson, to ride roughshod over the members of the department–telling deputies they can’t, in their off-duty hours, moonlight as security guards for the NEXUS Pipeline. Hunter’s argument to Hutchinson is that a member of the sheriff’s department going out with surveyors, who have been threatened by anti-pipeline wackos, somehow “intimidates” landowners. Even though the sheriff’s deputies are not in uniform, not driving a police car, and are otherwise unrecognizable to landowners as belonging to the sheriff’s department when they tag along to be sure the surveyors don’t get accosted by the peace-loving landowners the sheriff is “sworn to serve.” Sheriff Hutchinson bought Hunter’s argument hook, line and sinker. And so Sheriff Hutchinson has told his deputies what they can and can’t do in their off-duty hours. Hmmm. We wonder how the deputies like being told what they can and can’t do when they’re off the clock? We wonder if they like the sheriff preventing them from earning extra money working for a private company (a common practice with off-duty law officers)? Could the sheriff himself be breaking the law by disallowing his deputies from working for one specific private company, when (we presume) he allows the very same practice for other private companies?…
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    Stark County, OH Judge Orders Sheriff to Assist NEXUS with Surveys

    In Summit County, OH, a county judge has denied NEXUS Pipeline’s request to force recalcitrant landowners to allow surveyors on their property (see Summit County, OH Judge Denies NEXUS Request to Survey Properties). In neighboring Stark County, it’s the reverse. A judge in Stark County granted NEXUS a court order allowing them to survey properties where the pipeline may potentially run. And whereas in Wayne County (borders both Summit and Stark) the Wayne County Sheriff won’t let his deputies work as off-duty security guards for NEXUS (see today’s story questioning the legality of the Sheriff’s action), the judge in Stark County has ORDERED the sheriff there to enforce NEXUS’ right to enter properties to survey them. The Stark County sheriff is telling his on-duty deputies to accompany surveyors to protect them. Is your head spinning yet?…
    Read More “Stark County, OH Judge Orders Sheriff to Assist NEXUS with Surveys”

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    Differing Versions of How PA Budget/Severance Tax Talks are Going

    baseball bat kneecapsWhere does the Pennsylvania budget negotiation/standoff stand? Depends on who you ask. There have been some intense negotiations over the past few days (a room with a bunch of men hollering at each other). When he emerges from the meetings, PA Gov. Tom Wolf, the most liberal governor in the United States, paints a smile on his face and mouths unspecific platitudes about making progress. When Wolf’s top surrogate emerges, State Sen. Vincent Hughes (Democrat from Philadelphia), Hughes says they aren’t any closer to getting Republicans to cave on a Marcellus Shale-killing severance tax. And that irks him. And Hughes blusters that there will be NO budget without a severance tax as part of it. Good luck with that Sen. Hughes. We applaud Republicans for preserving the Marcellus industry–what’s left of it in this low price environment. Let’s hope Republicans don’t cave to the bluster and deceit being pedaled by the Democrats in Harrisburg. We certainly understand the Dems are in a real bind. They PROMISED the teachers unions big money in return for their support. This is a payoff–shaking down the Marcellus industry to give the money to overpaid teachers and union bosses. And if Wolf doesn’t pull it off–he can kiss a second term good-bye as far as the unions are concerned. They play for keeps and Wolf knows it. Here’s the latest in the ongoing budget battle…
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    New NatGas Powered Electric Plant Coming to…Rhode Island?!

    Yet another new electric generating plant that will use abundant, cheap and clean-burning natural gas to power it was recently announced in…Rhode Island? Yep–Rhode Island, the socialist paradise on the East Coast. Home to old money and people who oppose change of any kind. At a big ceremony last week none other than RI’s Gov. Gina Raimondo joined the CEO of Invenergy to announce the Clear River Energy Center–a 900 megawatt electric generating plant that runs on natural gas. The new plant will lower RI residents’ electric bills by a collective $280 million and replace aging coal and oil power plants–cleaning the air in the process. With the jobs created, the investment in the facility, and lower electric rates, it’s calculated this single plant will have a $1.3 billion impact on the economy of RI. Now if we can only get either the Kinder Morgan’s Northeast Energy Direct or Spectra Energy’s Access Northeast pipelines built…
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    Moody’s Says Oil & Gas Prices Staying Low Another 3 Years

    How long will oil and gas prices still in the basement? Isn’t that the quadrillion dollar question! A new report from Moody’s Investors Service says, after evaluating data on 90 companies, it expects oil and gas prices to stay low for another three years. Ouch. Here’s some insights from the wizards of smart at Moody’s…
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    Frack Wastewater Treatment Market Still Worth $1.9 Billion

    Even though we’ve had a dramatic decline in global oil prices–a price collapse from near $100 per barrel to less than $45 per barrel in under a year, and even though that price collapse is directly related to less shale drilling and fracking everywhere–including the Marcellus/Utica, water reuse/recycling in the Marcellus Shale is still in demand says a new report by Lux Research. In fact, the market for frack water management across the country is still estimated to be worth $1.9 billion, not including water transportation and disposal…
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    PA DEP Finalizes Onerous New Drilling Regs, Industry Opposes

    fireworksMajor changes are on the way for Pennsylvania’s conventional (vertical) and unconventional (shale/horizontal) drillers. In 2011 PA began a process that’s gone on way too long, to update certain regulations that apply to oil and gas drillers known as Chapter 78 of the 1984 Oil and Gas Act. Along the way the PA legislature decided there should be separate rules governing conventional and unconventional drilling–so Chapter 78 has become Chapter 78 (conventional) and 78a (unconventional). PA was close to adopting the new rules at the end of the Tom Corbett administration but then he lost his bid for re-election, throwing the process into turmoil once again with newly elected Tom Wolf and his PennFuture buddies wanting to put their own stamp on drilling regulations in the Keystone State (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Yesterday the Dept. of Environmental Protection (DEP) released the final draft version for both Chapter 78 and 78a (copy below). Last week the group that will consider this new draft for conventional drilling, the Conventional Oil and Gas Advisory Committee (COGAC), preemptively said they would vote against adopting the draft (see PA DEP Sec Quigley’s Own Committee Appointees Turn Against Him). PennFuture DEP Sec. Quigley said, “COGAC’s opposition will not hinder the progress of the final rule, and I hope when they meet in August that they are prepared to engage with us as we finalize the rule.” In other words: “Screw you, I’ll do what I want to do anyway.” We predict fireworks at the COGAC meeting on August 27 in Harrisburg…
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