Industrywide Issues

Economic Impact | Industrywide Issues | Research

Report: Marcellus Worth Another $90 Billion, 25K Wells Thru 2035
August 29, 2014August 29, 2014

Wood Mackenzie (WM) is a global energy, metals and mining research and consulting company based in Edinburgh, Scotland with 25 offices around the world, including Houston, TX. The company has just released a new report on the Marcellus Shale. The report, titled “Marcellus Key Play Analysis,” contains some interesting findings. Among them: WM analysts say there is $90 billion left in the Marcellus Shale. That number is calculated as how much revenue drillers will derive from selling the gas they mine from the play minus development costs. The report estimates that the top 20 drillers in the Marcellus will drill 25,000 wells in the play through 2035. Improved efficiency has lowered drilling costs according to WM. But the real secret, according to WM, to unlocking value in both the Marcellus and other shale plays is…
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Electrical Generation | Industrywide Issues | Marshall County | Regulation | West Virginia

Marshall County Votes to Accept Gas-Powered Electric Plant
August 29, 2014August 29, 2014

In April MDN told you about a plan from a Buffalo, NY company to build an electric generating power plant in Marshall County, WV that will use Marcellus Shale gas to power it (see Marcellus-Powered Electric Plant Coming to Marshall County, WV). The plan is a bit complicated, as we’ve previously outlined. In essence, Moundsville Power, the name of the company, will build the plant and then turn over the deed to the plant to the county. Since it will be county-owned, on paper, the company will not pay any property taxes. Instead, they will pay annual “rental” payments to the county in lieu of property taxes (see Complicated Deal for Proposed WV Gas-Powered Electric Plant). It makes the project affordable and doable. County officials recently approved the plan…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Anti-Drillers Send PA DEP Letter: You’re Falling Down on the Job
August 29, 2014August 29, 2014

A group of virulently anti-drilling (and anti-fossil fuel) groups sent a nasty-gram letter to Pennsylvania Secretary of the Dept. of Environmental Protection, Chris Abruzzo, essentially telling him he’s not doing is job. The groups, sprearheaded by the wacky Sierra Club, THE Delaware Riverkeeper (the haughty and arrogant Maya van Rossum), and PennEnvironment, cite a completely discredited “report” from the politically-motivated Auditor General, Eugene DePasquale (see Anti-Drilling PA Auditor General Criticizes DEP in “Report”), along with other so-called reports from groups like the half-baked Earthworks, to accuse the DEP of being sloppy, neglectful, obstructionist, or all three. Mainstream media spins this as “environment groups send a letter to the DEP with their concerns.” It’s nothing of the sort. It’s pure horse manure and frankly, meaningless…
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Industrywide Issues | NG Vehicles | Pennsylvania | Statewide PA | Taxation

PA Spending $6M on Program to Convert Vehicles to Natgas
August 29, 2014August 29, 2014

The Pennsylvania Marcellus is a gift that keeps on giving. Pennsylvania Gov. Tom Corbett announced yesterday that the third round of funding from Act 13 funds to convert vehicles to run on natural gas will open tomorrow–August 30th. So far PA has collected over $600 million in “impact fees” from Marcellus drillers under the Act 13 law passed by Corbett early in his administration. Most (60%) of impact fee revenue goes back to the local communities where drilling occurs–to compensate them for the hassles or “impacts” that come with drilling. But 40% of the impact fee money goes to communities (or programs) with no active drilling. We uncharitably call it political walking around money. Necessary to grease the hands of greedy politicians. Some of that walking around money goes to fund the conversion of cars and trucks to run on compressed natural gas–a worthy cause in our opinion. This time around $6 million of impact fee money will go to fund natgas vehicle conversions. Who can apply? Just about anyone–except individuals. It must be a company, non-profit or government agency/entity…
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Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA PUC Appeals Act 13 Case to Supreme Court One More Time
August 29, 2014August 29, 2014

It seems there’s still a bit of unfinished business with the ongoing, never-ending lawsuits around the Act 13 oil and gas drilling law in Pennsylvania. At least one final bit of unfinished business. You will recall that seven selfish towns sued the state over the Act 13 law and it’s provision that would substitute a statewide, uniform and fair set of zoning ordinances for drilling in place of a patchwork, crazy quilt system of local ordinances for oil and gas drilling. These seven selfish towns wanted their own ordinances and sued, ultimately winning at the Supreme Court (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The PA Supremes couldn’t, however, be bothered with deciding every tiny bit of nuance and sent some items back to the lower Commonwealth Court for final decisions. One of those decisions was about whether or not the PA Public Utility Commission (PUC) has the right to review any local oil and gas ordinances for compliance with state standards, making the award of impact fee money to a town based on such compliance. The Commonwealth Court gutted that right, taking it away from the PUC in a July decision (see PA Court Says 7 Towns Can Keep Marcellus Money & Ban Drilling Too). The PUC has appealed that decision back up to the Supremes…
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Air Quality | Industrywide Issues | Research

Enviro Emergency: 570 Methane Plumes Discovered Along East Coast
August 29, 2014August 29, 2014

You know how dangerous that filty, vile fugitive is, fugitive methane, right? “Learned” professors like Cornell’s Robert Howarth and Tony Ingraffea have used all sorts of money from the Park Foundation to spin out “studies” to try and convince us that too much methane from natural gas drilling is escaping into the atmosphere where it’s baking Mother Earth with global warming (even though the forecast for the next year is cooler than normal, ahem). So imagine our surprise when we saw a newly released study that says researchers have noticed more than 570 (!) methane “seeps”–places where methane is leaking pell-mell into the atmosphere–from the ocean floor along the East Coast. And just where are Howarth and Ingraffea now, when there’s a five alarm methane emergency coming from Mother Earth?…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pike County | Research

USGS Study: Pike County Water has Methane, Radon – No Drilling
August 28, 2014August 28, 2014

In the summer of 2012, the U.S. Geological Survey (USGS) began a groundwater survey in Pike County, PA. Pike, located in northeastern PA, is one of the counties with the dubious distinction of being under the regulatory purview of the Delaware River Basin Commission which has, so far, refused to allow any Marcellus Shale drilling. The survey’s purpose is to provide baseline numbers prior to any Marcellus drilling activity. So, just to be clear, there has been NO drilling thus far in Pike nor anywhere near Pike. And yet, what did the USGS survey, published in July 2014 (full copy below) show? Some 80% of the water wells tested in Pike have “detectable concentrations of methane” and 10% of the wells (2 of the 20 tested) have high levels of methane. Not only that, 85% (!) of the wells tested have (gasp) really high radon levels–over the proposed safe limit of 300 picocuries per liter. One well was as high as 4,500 picocuries! But it gets worse–there’s also measurable quantities of nasty stuff like barium, strontium, and the dreaded chloride (salt). And yet, not a Marcellus Shale well in sight. Now how can that be?…
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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA AG Kane Goes on Witch Hunt of Drilling Industry over Royalties
August 28, 2014August 28, 2014

You can’t say we didn’t warn you. In April MDN warned you that by inviting Pennsylvania’s avowed anti-drilling Attorney General Kathleen Kane (Democrat) to investigate Chesapeake Energy for shorting landowners on royalties, an invitation extended by PA Gov. Tom Corbett and PA Sen. Gene Yaw (both Republicans), they would unleash something far worse than they expected (see PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue). We were right. Word has filtered down that Kane is expanding the scope of her investigation “throughout the energy industry” in PA. Translation: the witch hunt has begun…
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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Mahoning County | Ohio | Processing Plants | Supply Chain | Utica Shale

Blue Racer to Build New Wet Gas Plant in Mahoning County, OH
August 28, 2014August 28, 2014

Listen up supply chain companies who want to get involved with a big new project coming in the Ohio Utica Shale. Blue Racer Midstream, the $1.5 billion joint venture between Caiman Energy II, LLC and Dominion formed in December of 2012, plans to build a new wet gas processing facility in Mahoning County by June 2016. The new facility, located near Petersburg in Springfield Township appears to be “back on track” according to an article in the Youngstown Business Journal…
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CONSOL Energy | Energy Companies | Energy Services | Greene County (PA) | Halliburton | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

Frack It Again – CONSOL’s Experiment in Refracking a Success
August 28, 2014August 28, 2014

Frack and refrack? Yep. CONSOL Energy started drilling Marcellus Shale wells in 2009. In fact, they drilled half a dozen wells in Greene County at the time. Five years ago is an eternity in the shale drilling business. Knowledge and experience has expanded maybe a hundred-fold since that time. With every new well CONSOL and other drillers learn what does and what does not work. So CONSOL had an interesting idea: what would happen if we went back and refracked some of those early wells, which were not good producers? CONSOL hired Halliburton to refrack and the results were so good, they’re going to refrack another 200 wells…
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Industrywide Issues | Regulation

Obama Back Door Climate Plan: Use UN to Police US Global Warming
August 28, 2014August 28, 2014

President Barack Obama intends to once again act illegally and unlawfully–in contravention to the U.S. Constitution and it’s separation of powers. Obama’s flouting of the Constitution has been breathtaking during his ignominious presidency–and it’s about to get worse. On Tuesday the New York Times reported a story that Obama and his global warming cronies are concocting a plan to sign a binding agreement, in essence a new treaty–without consent of two-thirds of the Senate as required by the Constitution–that would commit the U.S. to arbitrary and punitive emissions standards to be enforced by the United Nations. Talk about chutzpah…
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CNG/LNG | Industrywide Issues | Processing Plants

Deal to Purchase Site for Nova Scotia LNG Plant Advances Quickly
August 28, 2014August 28, 2014

One month ago MDN brought you the news that Liquefied Natural Gas Limited (LNGL) was in the process of purchasing a 255-acre site in Nova Scotia, Canada from Anadarko Petroleum to be used as an LNG export facility (see New LNG Plant in Nova Scotia Will Use Marcellus Gas). The reason that’s news for MDN is because some of the gas that will feed the facility is slated to be Marcellus Shale gas, piped up to Nova Scotia. Today LNGL announced the purchase of what they call the Bear Head LNG site is now complete, ahead of schedule. LNGL paid a drop in the bucket–$11 million–for the site. If they move forward with building an LNG export facility, they’ll invest something like $2.2 billion…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Michigan | Statewide MI

Michigan Sierra Clubs Spreads Lies About Fracking
August 28, 2014August 28, 2014

The Sierra Club, in this case from Michigan, continues to spread lies about hydraulic fracturing to unsuspecting (and mostly unthinking) residents. Last night a representative from Michigan’s so-called Beyond Natural Gas campaign showed up at the Brighton, MI Library to spread some more lies…
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Energy Services | Industrywide Issues | Lancaster County | Lebanon County | Pennsylvania | Pipelines | Regulation | Statewide PA | Transco | Williams

PA Gov Corbett Makes Political U-Turn on Pipeline Project
August 27, 2014August 27, 2014

Last week Pennsylvania Gov. Tom Corbett waded into the thorny issue of whether or not the Federal Energy Regulatory Commission (FERC) should approve the Williams Tranco pipeline expansion project. Dubbed the Atlantic Sunrise project, the $3 billion project which reaches far beyond just PA, would carry PA Marcellus Shale gas to the East Coast and to southern states (see Williams Open House Sheds more Light on Transco Atlantic Sunrise). Last week Corbett sent a letter to FERC asking the feds to look carefully at the Atlantic Sunrise expansion project because he’s hearing a lot of noise from voters about it. He also requested FERC to zoom out and look at the big picture–consider all of the proposed pipeline projects for PA and whether as a whole it makes sense–and not just look at each project individually…
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Allegheny County | Industrywide Issues | Pennsylvania | Regulation | Venango County | Wastewater

PA Driller Slapped with $250K Fine for Dumping Brine, Erosion
August 27, 2014August 27, 2014

UPDATE: An alert MDN reader from Venango County with industry knowledge contacted MDN to say he very much doubts Henderson has done any Marcellus Shale drilling. Henderson’s history is as a shallow/conventional driller and not a shale driller. Thanks for that clarification!

William Henderson, the president and operator of three companies–Titusville Oil & Gas Associates Inc., Eagle Line Corporation, and Olympia Oil Services Inc.–has been fined $250,000 by the Pennsylvania Dept. of Environmental Protection (DEP) for violations of the Clean Stream Law, Solid Waste Management Act, and Oil and Gas Act. The DEP says Henderson and his companies have caused environmental damage from illegal discharges of production fluids (brine), for causing erosion, and more. The violations occurred from 2010 to 2014. It’s not clear to MDN that any of the violations were from Marcellus Shale drilling activities, but it seems likely. Here’s what the DEP said, along with information not provided by the DEP that MDN has dug up on Henderson from 2011…
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Energy Services | Industrywide Issues | Pipelines | Transco | Williams

Williams to Expand Transco Pipeline Again, More Marcellus to NE
August 27, 2014August 27, 2014

There’s no doubt that Williams is a major midstream player in the Marcellus and Utica Shale. Williams is in the process of growing–massively–by purchasing Access Midstream (see Big News: Williams Partners Buying Access Midstream for $6B). Williams is also the owner of the Transcontinental (or Transco) pipeline, a 10,200-mile pipeline system, extending from South Texas to New York City. Williams wants to further expand the Transco with it’s Atlantic Sunrise project to bring Marcellus gas to the northeast and southern states (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). Yesterday Williams announced an open season (period of time when new customers can sign up) for yet a another expansion of the Transco, this time to bring more Marcellus Shale gas to places like New Jersey and New York City. This newest expansion is being called the Diamond East Project and Williams expects to pony up $500-$800 million to make it happen by 2018…
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