Industrywide Issues

Chevron | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

CSSD Bestows First Certification for Sustainable Drilling: Chevron
September 18, 2014September 18, 2014

In March 2013, the Center for Sustainable Shale Development (CSSD) burst onto the scene. It had been a closely guarded secret, the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. They worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, it would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe driller. We were somewhat skeptical from the start (see Important: Drillers & Enviros Form New Group, Launch Cert Program). However, the time for skepticism may be over. Today the CSSD announced they have certified their very first driller–one of their founding members–Chevron…
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Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Wastewater

GreenHunter Gets Green Light for 4 New OH Injection Wells
September 18, 2014September 18, 2014

This one won’t please the anti-drilling nutters in Ohio. GreenHunter Resources (division of Magnum Hunter) announced on Tuesday they have received permits and have concluded successful testing to bring four new Utica/Marcellus wastewater injection wells online in Meigs County, OH. With the addition of these four new injection wells, GreenHunter will be operating a total of 13 such wells. Each of the new wells can handle 3,000-5,000 barrels of brine/wastewater per day. According to GreenHunter, most of that new capacity coming online is already spoken for. They already have major drillers locked up as customers for the new capacity because the need is so great. The company also says the wells are ready to be begin accepting wastewater that’s barged down the Ohio River (hint hint U.S. Coast Guard)…
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CNG/LNG | Economic Impact | Exporting | Industrywide Issues | Luzerne County | Pennsylvania

Air Products Wins Contract for TX LNG Plant, Marcellus Connection?
September 18, 2014September 18, 2014

This is the kind of story MDN enjoys telling–connecting dots that others haven’t noticed. In broad brush strokes, Air Products announced on Tuesday that they have won the contract to provide two massive liquefied natural gas heat exchangers for Freeport LNG in Freeport, Texas. The heat exchangers will take two years to build and both will be built at their Wilkes-Barre, PA plant. At first blush you may not think there is a connection to the Marcellus/Utica, but there is. Here’s how the Air Products announcement all ties together for the Marcellus Shale (and what you won’t find anywhere else)…
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CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble Energy | Pipelines

CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M
September 18, 2014September 18, 2014

Three weeks ago MDN brought you the news that CONSOL Energy together with Noble Energy (two drillers who joint venture together on some Marcellus drilling) have joined forces to form a midstream (pipeline) company called CONE Midstream to hook up pipelines to their Marcellus wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). The new pipeline company will take the corporate form of a master limited partnership, or MLP. Yesterday Noble announced an initial public offering (IPO) for “units” in the new company (think shares of stock). The companies hope to sell 20.1 million units and raise $422.6 million for the fledgling midstream company…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Scientific American Reporter Admits Real Reason He Hates Fracking
September 18, 2014September 18, 2014

For years MDN has made the case that so-called environmental groups and individuals highly placed in the environmental movement are not opposed to shale drilling because “fracking contaminates water supplies” and all of the other arguments they frequently throw out as red herrings to confuse and obfuscate. Recent studies by the federal government and researchers at top universities are proving the converse–that fracking and shale drilling doesn’t contaminate water, the environment, etc. Our observation and contention (for years) has been these people have had a philosophical snap–a mental breakdown–and they now irrationally hate all fossil fuels as a source of energy. Maybe they overdosed on Frosted Flakes and Captain Planet cartoons on Saturday mornings as children…who knows? What is indisputable is their abject hatred of oil and gas simply because it comes from the ground (“extractive”) and it’s based on carbon–the same element their own bodies are based on. How utterly stupid is that? We have yet more proof that these nutters infest even storied publications like Scientific American…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

The Urgent Case for a Ban on Food & Water Watch
September 18, 2014September 18, 2014

The anti-drilling nuts at Food & Water Watch (FWW) just keep getting nuttier. FWW is a highly partisan, highly anti-drilling non-profit that raises huge sums of money to fund faux research and efforts to get fracking, shale drilling–anything to do with fossil fuels–banned. We often refer to them as “odious” because that’s precisely what they are. They lie so often about shale drilling it’s hardly worth mentioning any more. Their lies aren’t doing the trick, so they’ve amped it up a notch and have just issued a brand new report titled, “The Urgent Case for a Ban on Fracking” (full copy below). Hence the title of this article. We think there’s a much stronger case to be made to ban FWW than to ban fracking…
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Greene County (PA) | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research

Federal NETL Study: Fracking Doesn’t Contaminate Water Supplies
September 17, 2014September 17, 2014

This is a very important story that MDN has been following for more than two years. In June 2012, MDN reported the launch “out of nowhere” of a study by U.S. Dept. of Energy’s National Energy Technology Laboratory (NETL) to test whether or not faults, or large cracks that sometimes exist through multiple rock layers, can create a pathway for hydraulic fracturing fluids to migrate to aquifers (see NETL Study of Faults & Fracking, Are We Being Set Up?). We were a tad skeptical at first, but we were soon reassured this is real and unbiased science (see Update on NETL Faults & Fracking Study). A year later, the preliminary data reported by NETL was encouraging (see Breaking: Obama DOE Says Study Shows Fracking Fluids Don’t Migrate). The final version of the study, more than two years in the making, was published in the Proceedings of the National Academy of Sciences on Monday (full copy below). What did it show? According to the headline of an AP story: “Landmark fracking study finds no water pollution”…
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Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy New England Pipeline Gets a Name & a Partner
September 17, 2014September 17, 2014

Yikes. Pipelines planned for the northeast continue to spring up. They’re needed, that’s to be sure. And they bring with them billions of investment (and loads of jobs). All good things. Ultimately it will mean lower utility costs for gas and electric, particularly in New England–if these companies can get them built. One of the most recent entrants is Spectra Energy with their announcement in July to expand the Algonquin and Maritimes pipeline systems adding an additional 1 billion cubic feet of natural gas per day by 2017, much of it slated for New England’s electric generating plants (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project now has a name and a new partner. It’s being called the Access Northeast project and Spectra has picked up a partner in Northeast Utilities to help shoulder the expense, pegged at $3 billion to build it…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | M&A

Morgan Stanley Buys Partnership in Eureka Hunter for $65M
September 17, 2014September 17, 2014

Yesterday Magnum Hunter, a Marcellus/Utica driller with a number of subsidiaries, including midstream company Eureka Hunter, announced that Morgan Stanley is becoming a partner in Eureka Hunter. Price tag for becoming a partner? $65 million. According to Magnum Hunter and Morgan Stanley, Eureka Hunter is now worth $1 billion. The deal itself is complicated and includes multiple subsidiaries and names you’ve likely never heard of (like Ridgeline Midstream and ArcLight Capital Partners). We just told you the news in a nutshell. Below is the press release from Magnum Hunter announcing that news–a press release obviously written by lawyers, rendering it virtually unreadable for the rest of us…
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Hydraulic Fracturing | Industrywide Issues | Ohio | Portage County | Research | Utica Shale

OH Village Water Study Finds Utica Drilling Doesn’t Pollute
September 17, 2014September 17, 2014

Smart people in Garrettsville, Ohio. Garrettsville is a small village (population 2,325) located in Portage County, OH. In 2011 there were five Utica Shale wells being drilled near the village. Some of the residents were concerned that the drilling may affect sources of public drinking water the village relies on. So the village Board of Public Affairs contacted and arranged to have the Natural Gas and Water Resources Institute at Youngstown State University monitor some 20 water wells in the area to see if Utica drilling affected any of them. The study began in 2012 and is “ongoing.” What has it found?…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lebanon County | Pennsylvania | Pipelines | UGI Energy Services | Williams

Pavlovian Opposition Continues Against PennEast, Atlantic Sunrise
September 17, 2014September 17, 2014

Whenever a major new interstate pipeline is proposed, especially in the northeast where more such pipelines are desperately needed, anti-drillers jump up and begin protesting immediately. It’s like a knee-jerk reaction–a Pavlov’s dog experiment gone awry. They don’t even know why they oppose it–they just do. Can’t help themselves. And so earlier this week we have two anti-pipeline meetings–one in New Jersey against the PennEast Pipeline project, the other in Pennsylvania against the Atlantic Sunrise Pipeline project. Whenever these nuts gather their conversation turns to the shrill and irrational. Try this one on. The proposed PennEast Pipeline will “cut a wide ‘virgin’ path along the entire western edge of the county” in Hunterdon County, NJ, according to Sierra Clubers at an anti-pipeline meeting on Monday. Kind of conjures up rape, does it not? That’s just what they intend with their incendiary language…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation

Mich. AG Continues to Target Chesapeake, Racketeering Charge
September 17, 2014September 17, 2014

In June 2012 Reuters tried to stir up trouble against Chesapeake Energy by broadcasting “leaked” (Watergate anyone?) emails that somehow magically appeared on the Reuters doorstep that supposedly show Chesapeake trying to collude with Encana Energy to keep the price of Michigan state land oil and gas leases artificially low (see Did Reuters Break the Law with Latest Chesapeake Story?). Eventually the Michigan Attorney General’s office filed charges against Chesapeake, even though the federal government had investigated and didn’t find anything worth pursuing (see Feds Clear Chesapeake & Encana in Collusion Case, Michigan Next?). Michigan is still hell-bent on shaking down Chesapeake (see Michigan AG (Unbelievably) Files More Charges Against Chesapeake). The same Michigan Attorney General, Bill Schuette, has also filed charges against Chesapeake’s leasing arrangements with private landowners. On Monday, a Michigan court said Chessy must face a trial on one charge of racketeering (a felony) and 20 counts of using false pretenses to allegedly defraud private landowners in the state…
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Anti-Drilling/Fossil Fuel | Centre County | Industrywide Issues | Pennsylvania

‘Marcellus Shale Documentary Project’ opens Sept. 23 @ Penn State
September 17, 2014September 17, 2014

Penn State will debut the “Marcellus Shale Documentary Project” in State College, PA on Sept. 23 at the Palmer Museum of Art. We don’t know for certain, but we’re 99.9% sure this is more anti-drilling clap trap dressed up as a serious pursuit of the truth behind the Marcellus. The project “features photographic images that tell the personal stories of Pennsylvanians affected by the Marcellus Shale gas industry.” As part of this “important” new exhibition, a series of events are planned, referred to as a “museum crawl” (something like a pub crawl, only you get drunk on “art” instead of booze). A panel discussion to bash fossil fuels and “extractive industries” will happen in late October as part of the project. The panel is being sponsored (paid for) by Penn State, the Institute for the Arts and Humanities, and something called The Rock Ethics Institute. Bet you didn’t know that rocks have ethics, did you?…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

New Study Finds Well Casings, Not Fracking, Cause Methane Migration
September 16, 2014September 16, 2014

Another new “study” and already the headlines are blaring. A research team led by Ohio State University and composed of researchers at Duke, Stanford, Dartmouth, and the University of Rochester have just published their findings that methane migrates from some shale wells into local water wells. It certainly doesn’t sound like earth-shattering news, but the headlines across the country range from “Bad fracking wells taint water, scientists find” (Sacramento Bee) to “Weak wells not fracking caused US gas leaks into water” (BBC). The media has picked up on this latest study and, depending on the view of the reporter, has spun it to either say fracking is the culprit, or fracking isn’t the culprit–and just about everything in between. Once again MDN will break it down for you and tell you what the study really says. And, we have a copy of the published findings (embedded below) so you can read it for yourself and make up your own mind…
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY | Tompkins County

Norse Energy Appeals Town Ban Case Back to NY High Court
September 16, 2014September 16, 2014

In April MDN reported on the rumors that Norse Energy, the ill-fated company that bet big on New York State with 180,000 acres of leased land in NY, had been sold at bankruptcy court (see Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?). As we pointed out in the story, we don’t know if the company was actually sold, and if it was, who the actual buyer was. We still don’t know. What we do know is that the only thing left to sell were Norse’s leases, since they had already sold off all of the hard assets (see Lights Turned Off, Door Closed – Good Night, Norse Energy). However, the Norse trustee retained at least some of the leases assets so the company could continue their lawsuit against New York for bankrupting them. Try to get back at least some of that money. Then the double-whammy: The New York Court of Appeals (our highest court) ruled against Norse and said local towns can ban fracking (see Shale Drilling in NY is Over – High Court Upholds Town Bans). The new news, just coming to light for us, is that Norse appealed that decision back to the Court of Appeals for a second time, based on a recent decision in a Colorado court…
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Anti-Drilling/Fossil Fuel | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation

Athens, OH Anti-Frackers Demand Army Corps Count Each Form Letter
September 16, 2014September 16, 2014

The silly (and vacuous) “protesters” who don’t want GreenHunter to build a barge facility on the Ohio River (where there are what, dozens, hundreds of such facilities?) think that if they can convince enough like-minded (we use the term “minded” loosely) anti-fossil fuelers to sign their John Hancock on form letters that the U.S. Army Corps of Engineers should count each form letter individually instead of lumping them together. So instead of a “massive” 4,000 form letters received, the Corps records getting “fewer than 1,000” so-called protest letters against the wastewater barge facility. Appearances and raw numbers are all that matter to the carbon energy-allergic members of the Athens County Fracking Action Network (ACFAN). What’s the answer for this small group of people whose lives have no meaning apart from being against something? According to ACFAN and their odious backers at Food & Water Watch–sign more form letters to demand the Corps count their previous form letters!…
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