Industrywide Issues

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    Youngstown Plant Starts Operations, Selling Pipes to Shale Industry

    Although drilling activity in the Marcellus/Utica, indeed across all shale plays, has decreased in the past six months, that doesn’t mean all gas and oil related businesses have been adversely affected. Take Vallourec’s VAM USA LLC subsidiary–a pipe manufacturer with a facility in Youngstown, Ohio. In May, VAM began producing the first pipes for commercial sale at its new premium threading plant in Youngstown. More money, more jobs, rolling into eastern Ohio–thanks to the miracle of hydraulic fracturing. Here’s the details on VAM’s startup in producing pipe products for the shale industry…
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    Bumper Sticker: Ban Food & Water Watch Now

    Ban Food & Water Watch Now. That’s the bumper sticker we think people should put on their vehicles to express displeasure with the lies peddled by this un-American organization. Big Green organizations like the Park Foundation and the William Penn Foundation fund the activities of Food & Water Watch and other virulently anti-drilling organizations (including the Sierra Clubbers). In turn, these partisan hacks peddle lies at public meetings, and use money from their Big Green benefactors to launch frivolous lawsuits that slow down and in some cases stop shale drilling and pipeline projects. We think they should be stopped. They should be banned. What? “That’s outrageous! They have a right to express themselves!” So too, do pro-drillers. We have as much right to demand that THEIR organization be banned as they have to demand that fracking and pipelines (and all of the jobs and economic benefits that come from it) be banned. We’re simply putting the shoe on the other foot to see how they like wearing it. At a minimum, the IRS needs to investigate their tax exempt status with an eye to revoking it…
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    Antis Hate Marcellus Shale Drilling…Because of Richard Nixon?!

    Richard NixonOne of the most hated politicians (for the liberal left) in all of American history was Richard Milhous Nixon, 37th President of these United States. Which is ironic, because it was Nixon who created the blight on America we have today known as the Environmental Protection Agency–one of the libs’ favorite government agencies. Anywho, imagine our delight when we read this headline from a letter to the editor in the Pittsburgh Post-Gazette: “Pennsylvania’s Marcellus Shale fulfills President Nixon’s dream of energy independence.” The letter (full copy below) is written by MDN friend Joe Massaro from Energy in Depth. It got us to thinking, maybe the libs hate Marcellus Shale drilling not only because they consider it a crime against Mother Earth, with so-called global warming, but maybe they instinctively hate it because they hate Richard Nixon! Yeah! Libs don’t have to make sense (they rarely do)–and this explanation is as good as any, right? Read on to see how our buddy Joe found yet another liberal sore spot–associating Marcellus drilling with Richard Nixon–and jammed his foot on it…
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    Problematic: McClendon’s AEP Not Paying Some of its Bills

    Houston, We Have a ProblemDoes Aubrey McClendon’s American Energy Partners (AEP)–the new company he founded after being unceremoniously booted from Chesapeake Energy–have cash problems? You certainly wouldn’t think so. At last check in May 2014, McClendon had raised a staggering $8.7 billion in little more than a year (see Aubrey McClendon Raises Huge $8.7B for Shale Drilling…So Far). But the evidence keeps piling up that Aubrey isn’t paying his bills. In April, McClendon created a “blank check” company to raise $200 million in cash (see Aubrey McClendon’s New “Blank Check Company” Looks to Raise $200M). In May, Paloma Resources said a 3-way deal including McClendon’s AEP to lease 130,000 acres in the Ohio Utica Shale went bust because Aubrey didn’t have enough money to close the deal (see McClendon Running Out of Money?! Paloma Utica Deal Goes Bust). Last week MDN told you about a contractor working for AEP with several hundred thousand dollars in outstanding invoices that have gone unpaid–for more than 120 days (see Big McClendon News: Sells 35K Utica Acres, Creates New Company). Now the latest: a group of Ohio landowners have sued McClendon’s AEP along with an affiliate company and a land services company working for AEP, for non-payment of lease bonuses…
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    List of Who’s Still Active/Drilling in the Ohio Utica Shale

    Who’s still drilling/active in the Ohio Utica Shale? Depends on what criteria you use to measure it. We spotted a list of 19 “active” drillers in the Utica based on the criteria of who had producing wells in the first quarter of 2015. Fair enough. But as for who is actively drilling new holes in the ground right now? That’s a slightly different list. MDN recently published Volume 1 for the 2015 Marcellus and Utica Shale Databook (now in our fourth year of publishing this series). Our list shows 12 drillers who received at least one permit to drill in the Utica during the first four months of 2015. We have both lists below…
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    PA PUC Sues Snyder Bros to Collect $500K in Unpaid Impact Fees

    CORRECTION: The PUC misspoke in the figures given to the Pittsburgh Post-Gazette. Snyder Brothers were actually fined a total of $499,520 — $390,250 for impact and administrative fees, $11,707.50 in interest and a fine of $97,562.50. Our thanks to NGI’s Shale Daily for tracking down the mistake and alerting us to it!

    Last year we brought you the interesting story of strippers in the Marcellus–stripper wells, that is (see High-Priced Strippers in PA: Semantic Gymnastics with Impact Fee). Synder Brothers is an oil/gas producer in Pennsylvania. Most of the wells they drill are vertical-only wells. Among them are 24 wells from 2011 and 21 wells from 2012 that are vertical only–but all targeting the Marcellus. According to the definition of a stripper well under the Act 13 law passed in 2012, a well qualifies as a stripper well if it doesn’t produce over 90 thousand cubic feet (Mcf) of natural gas per day. Synder Bros. says their wells don’t, ergo their wells are stripper wells and not liable to pay an impact fee. The PA Public Utility Commission (PUC), charged with evaluating what does and does not qualify, says nope–your wells target the Marcellus formation and produced above 90 Mcf for at least one month out of the year, therefore must pay the impact fee. So the PUC has sued Snyder Bros. and intends to collect $500,000 in unpaid fees in the next 20 days, PLUS a $50,000 fine for inconveniencing the PUC…
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    Why Haven’t Anti Groups Opposed Andrew Place for PA PUC?

    Andrew Place - EQTSurprisingly, a very perceptive article in the Harrisburg Patriot-News asks the question, Why hasn’t there been a peep on the part of anti-drillers over the nomination of EQT’s Andrew Place to become a member of the board for the state’s Public Utility Commission (PUC)? Indeed, it’s a great question. EQT is a major Marcellus Shale driller based in Pittsburgh. The PUC is charged with collecting impact fees from shale drillers. The author of the article says imagine this headline, if it were 2014: “Corbett administration taps shale industry exec for key regulatory post.” Mainstream (Democrat) media would have a field day! We would have been treated to nonstop exposés on how Tom Corbett is in the back pocket of the drilling industry…political payoff…political patronage…backroom dealing…conflict of interest…et cetera ad nauseam. A year later it’s a Democrat governor doing the appointing, so the obedient Democrat media hasn’t breathed a word questioning the appointment. We’ve seen wingnut groups disagree with Wolf when it comes to drilling–they’d rather have no drilling than tax it, given the option. So why are these same “environmental” groups, like PennFuture which is opposed to the drilling industry and anyone/anything connected to it, apparently OK with the nomination of Andrew Place?…
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    Poll: Majority of Voters in VA, WV, NC Favor Atlantic Coast Pipeline

    The Consumer Energy Alliance, a non-partisan group providing consumers with sound, unbiased information on U.S. and global energy issues, recently published the results of a scientific poll of residents in North Carolina, Virginia and West Virginia that has major implications for pipelines and infrastructure work in the Marcellus/Utica. The poll found majorities of voters in NC, VA and WV have heard about Dominion’s $5 billion, 550-mile Atlantic Coast Pipeline–and they support it. Voters overwhelmingly believe pipelines are the safest means to transport natural gas. More than 80% of the voters surveyed said energy will be a significant factor in how they vote. This is really good news for the shale industry. Seems we’re constantly bludgeoned in the northeast when it comes to pipeline projects (NY, MA, NH, et al). But not in the southeast. Voters there have their heads screwed on straight and can tell the difference between the truth and lie–and they know that pipelines like the Atlantic Coast Pipeline will be good for their region. Of course, voters in the southeast tend to be Republican/Conservative and sure enough, the results show that a large majority of those identifying as Republicans and/or Conservatives support pipelines, whereas a majority of Democrats/Liberals don’t. Pipelines, like drilling, are a partisan issue. It shouldn’t be that way! These issues should be decided on the science–but science was thrown out the window a long time ago. Drilling and pipelines–indeed your attitude on the use of fossil fuels–is largely determined by your political philosophy. Below we have a summary of the poll, along with the details (crosstabs), for those who want to dig into the nitty gritty…
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    OH Agency Greenlights NRG Utica Pipeline to Feed Electric Plant

    Utility energy giant NRG, with loads of coal and natural gas electric generating plants scattered across the country, has just received the OK from the Ohio Power Siting Board to build a 20-mile pipeline from rural Lorain County, OH (where it will connect with a Dominion East Ohio pipeline) and connect to an NRG-owned natural gas powered electric generating plant in Avon Lake. The pipeline will flow Utica Shale gas to power the plant. Some landowners along the proposed route fought the plan, but the Ohio Power Siting Board rejected their claims there are better routes, saying NRG looked at all the possible routes. With the Board’s approval, NRG is taking the landowners to court with eminent domain cases…
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    Manhattan Institute Report Says Shale 2.0 Just Getting Started

    The New York-based Manhattan Institute, a non-profit think tank with a mission “to develop and disseminate new ideas that foster greater economic choice and individual responsibility,” released a new report in May titled, “Shale 2.0: Technology and the Coming Big-Data Revolution in America’s Shale Oil Fields” (full copy embedded below). The report explores and debunks the current meme coming from mainstream media, Saudi Arabia and other opponents of shale energy that with the current low price climate shale energy in the U.S. is done…fini…kaput. Mark Mills, Senior Fellow at the Manhattan Institute and author of the paper, says Shale 1.0 is now done, having run it’s course. But we’re still very early in the game and Shale 2.0 is just getting started. And oh, the (economic) places Shale 2.0 will take us!…
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    Pitt. Post-Gazette Affirms AMA Lie re Frack Chemical Disclosure

    Shale drillers already full disclose the relative thimbleful of chemicals used in fracking solutions. They do so by listing them on the FracFocus.org website–well by well for each well they drill. Recently the American Medical Association, either through ignorance or (more likely) an intentional desire to mislead the American public voted to adopt a resolution calling for the full disclosure of chemicals used in fracking (see American Medical Assoc Votes for Full Disclosure of Frack Chemicals). Makes no difference that this already happens. The point is to further the myth that it doesn’t happen. Just to ensure low information headline readers are 100% brainwashed on this issue, the editorial writers at the Pittsburgh Post-Gazette come along to affirm the AMA’s lie…
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    OH Congressman Bill Johnson: It’s Time US Ramps Up LNG Exports

    U.S. Congressman Bill Johnson, who represents eastern and southeastern Ohio (Utica Shale country) has introduced HR 315, a bill to force the Dept. of Energy to make decisions within 30 days for each new LNG project filed with the agency. Johnson also recently went on a trip to Portugal, Belgium, and the Ukraine to discuss energy policy–specifically liquefied natural gas (LNG) exports from the United States. Johnson penned the following column following his trip, advocating for U.S. LNG exports and discussing HR 315…
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    FrackFeed Site Uses Pop Culture to Spread Truth about Fracking

    You Have Fracking Questions?An edgy new pro-fracking website has sprung up that deserves your attention. It’s called FrackFeed.com and it’s designed along the lines of BuzzFeed, a news and entertainment site aimed at Millennials. FrackFeed, like BuzzFeed, contains short, “pithy” articles–but in FrackFeed’s case the articles respond to and expose the lies peddled by anti-drillers–using humor. The format is meant to be easily “consumed” on a smart phone–and shared with others. Of course the “cool, hipster” anti-drilling nutters are flustered that pro-drillers are turning one of their own tools against them–exposing them for the humorless mind-numbed robots they are. We love it when someone figures out how to get under their skin! Example: categories on the site include Quizzes, Memes and something called “Listicles”. FrackFeed uses the image of the fictional Ron Burgundy (actor Will Ferrell) of the Anchorman movies with the superimposed statement: “You Have Fracking Questions? I Have Fracking Answers!” Love it!…
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    Tackling a Tough Issue: Compressor Stations Near Populated Areas

    tough issuesThere’s no denying that compressor stations located in populated neighborhoods create problems. We have two examples to share–one from Lawrence County, PA, and one from Broome County, NY (MDN’s backyard). The usual complaint about compressor stations–required to compress natural gas and send it on its way through a pipeline system–is the noise. Noise seems to be the chief issue with a compressor station in Lawrence County, PA where landowners, many of them (most? all?) have signed leases with Hilcorp, the company that owns the compressor station in Mahoning Township, a township that borders Ohio. Although noise has also been an issue at the compressor station in the Town of Windsor, NY (Windsor borders Pennsylvania)–about five miles from the border of the City of Binghamton–noise at the Williams compressor station is now largely mitigated. In the case of the Williams compressor, the concerns by those who live closest to it are regular releases of mercaptan and constant truck traffic to and from the station…
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    Harvard Study: Fracking is Safe, Profitable, Good for Environment!

    Wow–who woulda thought Harvard University would publish a report that says fracking is a good thing (when done right) and that it will create 3.8 million new jobs by 2030 AND lower carbon emissions? The report, titled “America’s Unconventional Energy Opportunity” (full copy below) outlines “a strategic, fact-based approach to developing America’s new energy advantage to increase U.S. competitiveness and drive much-needed job and economic growth, to reducing environmental impacts, and to accelerating progress on climate change.” The authors say that with some tweaks to regulations and by using know best practices, hydraulic fracturing is safe–and an economic bonanza for America–AND good for the environment (reduces nasty carbon dioxide which causes mythical global warming)! It’s important to note the study was self-funded and published by the Harvard Business School. No outside money was involved from the likes of the Park Foundation or Heniz Endowments or William Penn Foundation–virulent anti-drilling Big Green organizations that routinely purchase “scientific” studies with pre-determined outcomes. This time is different. The authors were not beholden to big money benefactors. They are smart people tackling tough issues with an open mind–and the conclusion they come to is the same conclusion reached by millions of people who bother to research the issues: fracking is safe…
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    Williams Transco Leidy Pipeline Ruptures in Lycoming County, PA

    A Williams Transco Leidy pipeline ruptured in Lycoming County, PA around 9:30 pm Wednesday night. There was no fire–and no one was injured–but families within a 3-mile radius were evacuated as a safety precaution. By 11:45 pm they were allowed to return home. Williams is not yet sure what caused the rupture–they’ve sent off a section of the pipeline to a lab for analysis. No word (yet) on how long before the pipeline is repaired and flowing again…
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