Industrywide Issues

Hydraulic Fracturing | Industrywide Issues | Regulation

North Carolina Shames New York: Fracking Begins in 2015
July 15, 2014July 15, 2014

It’s taken six long years and New York State still has no regulations in place to allow high volume hydraulic fracturing–to it’s utter shame and the shame of Gov. Andrew Cuomo. When it is allowed (and it will be allowed at some point, you can bank on it), the fight will go local because of a bone-headed decision by the state’s highest court (see Shale Drilling in NY is Over – High Court Upholds Town Bans). By this time next year, North Carolina will have active fracking and shale drilling. How long did it take that state? Two years from the time they placed a moratorium on fracking (in 2012) until last week when the Republican governor of North Carolina signed a law to allow it by next year…
Read More “North Carolina Shames New York: Fracking Begins in 2015”
Anti-Drilling/Fossil Fuel | CNG/LNG | Crime | Exporting | Industrywide Issues

24 Anti-Drilling Protesters Arrested by Homeland Security in DC
July 15, 2014July 15, 2014

MDN reported yesterday on the massive flop of a protest in Washington, DC against the Cove Point, Maryland LNG export facility (see Anti-Cove Point LNG Protest in DC Flops Bigtime). The so-called protest literally got no coverage from the media–except for the terrorist-loving Al Jazeera America network. What to do? Some of the more virulent protesters desperately craved some media attention, so they did what they often do–break the law. More than 30 anti-drilling “protesters” locked arms and blocked the entrance to the Federal Energy Regulatory Commission building in downtown DC yesterday. Homeland Security arrested 24 of them…
Read More “24 Anti-Drilling Protesters Arrested by Homeland Security in DC”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Dominion to Begin Cove Point LNG Construction in Next 2 Mos
July 15, 2014July 15, 2014

Despite the best protest efforts by anti-drillers against the Cove Point, Maryland LNG export facility in Washington (see our stories from yesterday and today), Dominion waits for final approval from the Federal Energy Regulatory commission (FERC) to begin construction. Dominion previously got a green light from the Dept. of Energy last September (see Celebrate! Dominion Wins DOE Approval for MD LNG Export Facility). Dominion also got an initial green light from FERC (see FERC Final EIS: Cove Point Won’t Hurt Environment). However, Dominion needs a final approval from FERC before they can begin construction. They expect that approval very soon…
Read More “Dominion to Begin Cove Point LNG Construction in Next 2 Mos”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Pipelines | Wastewater | West Virginia

GreenHunter’s Unidentified Barge Facility Pipeline Destination
July 15, 2014July 15, 2014

John Jack, VP of business operations for GreenHunter Water, is being a bit cagey. Two weeks ago GreenHunter announced they will build three new, short pipelines for different purposes: one for frack wastewater/brine, one for fresh water, and one for condensate (see 3 New (Short) Pipelines from GreenHunter in Tri-state Area). Two of the pipelines will originate in southwestern PA and one in WV. All of them will connect with one of GreenHunter’s barge terminals on the Ohio River. That’s what Jack is being cagey about: where will the three pipelines connect? Which barge terminal?…
Read More “GreenHunter’s Unidentified Barge Facility Pipeline Destination”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

Magnum Hunter Proved Reserves Up 10.7%, Marcellus/Utica Tops
July 15, 2014July 15, 2014

Magnum Hunter Resources (MHR) provided a mid-year update yesterday that shows the company’s proved reserves increased an impressive 10.7%–just since December 2013. The Marcellus/Utica has also become more important for MHR. As NGI’s Shale Daily points out in a story published yesterday, “Magnum Hunter Resources Corp. said Monday the Appalachian Basin now accounts for approximately 80% of its total proved reserves, up from 70% at the end of last year as it continues to divest non-core assets to focus on developing nearly 200,000 net Marcellus/Utica acres.” Translation: MHR is inching ever closer to becoming a “pure-play” driller. Here’s yesterday’s update from MHR:
Read More “Magnum Hunter Proved Reserves Up 10.7%, Marcellus/Utica Tops”
Hydraulic Fracturing | Industrywide Issues | Research

July DPR: Marcellus Production Up 28%, No End in Sight
July 15, 2014July 15, 2014

The Marcellus Shale continues to be a monster for production. Yesterday the Energy Information Administration released their latest monthly Drilling Productivity Report (DPR) and it shows the Marcellus will average 15.235 billion cubic feet a day this month, up 28 percent from a year earlier. The Marcellus now produces 16% of all natural gas in the United States. Below is the full DPR issued yesterday, along with a couple of charts not in the DPR that MDN finds useful…
Read More “July DPR: Marcellus Production Up 28%, No End in Sight”
Concord Energy | Industrywide Issues | NGLs | Trucking | West Virginia | Wood County

New Truck-to-Rail Transload Facility for Condensate/NGLs in WV
July 14, 2014July 14, 2014

Marcellus and Utica Shale drillers who are looking to sell more of their condensate and natural gas liquids (NGLs) have a new option. Concord Energy has just announced they will open a new Utica/Marcellus condensate & NGL transloading facility (truck to rail) in Parkersburg, WV. The new facility, which should be operational by mid-August of this year, will allow Concord to ship up to 150,000 barrels per month of condensate and NGLs. Here’s the particulars…
Read More “New Truck-to-Rail Transload Facility for Condensate/NGLs in WV”
Allegany County | Garrett County | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland Releases 2nd Report on Shale Drilling: “Best Practices”
July 14, 2014July 14, 2014

Maryland finally released their “Internal Final Best Practices” (Part II) study on Friday. The behemoth 255-page study (full copy below) appears to be an exercise in how to stifle Marcellus Shale drilling in the two western Maryland counties where it’s found. This is the second of three reports being produced by a joint effort of the Maryland Dept. of the Environment (MDE) and the Maryland Dept. of Natural Resources (DNR), as required under an executive order from outgoing Gov. Martin O’Malley (see Maryland Marcellus Shale Commission to Have First Meeting This Week – One Meeting Down, Three More Years of Meetings to Go). There’s lots to like in this so-called best practices (more like “no practices”) report–if you’re anti-drilling…
Read More “Maryland Releases 2nd Report on Shale Drilling: “Best Practices””
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Is PA’s Act 13 Law on Last Legs with Passage of PA Budget?
July 14, 2014July 14, 2014

It’s early days yet–but here’s a developing and potentially disturbing story for drillers (and landowners, and supply chain companies) in Pennsylvania. As MDN reported, last week PA Gov. Tom Corbett signed a $29.1 billion budget bill (see PA Budget Signed by Gov. Corbett – No Severance Tax This Year). The good news is there will be no jobs-and-drilling killing severance tax–this year. The bad news is that regulations that should have been standalone–to separate conventional and unconventional drilling–were slipped into the budget bill. Why is that bad? Because, as StateImpact Pennsylvania is reporting, it may lead to the total gutting of the Act 13 law…
Read More “Is PA’s Act 13 Law on Last Legs with Passage of PA Budget?”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Anti-Drilling Group Sues PA over Budget and $ from State Leases
July 14, 2014July 14, 2014

The litigious anti-drilling group Pennsylvania Environmental Defense Foundation (PEDF) waited all of about two hours after PA Gov. Tom Corbett signed the 2014 PA budget before filing a lawsuit to prevent the use of money from leasing more state forestland and parks for drilling under (not on). Gov. Corbett originally requested $75 million in new revenue from the effort. As we pointed out, that $75M represents exactly 0.00255 of the budget (see PA Dems: No Leg to Stand on Criticizing $75M Forest Drilling Plan). In other words, a rounding error. Never mind that Ed “fast Eddie” Rendell sold $444 million worth of leases that drill on as well as under, when he was governor. House and Senate Republicans upped the number to $95M and Corbett signed the budget, so the PEDF is trying to make legal mischief, once again…
Read More “Anti-Drilling Group Sues PA over Budget and $ from State Leases”
Industrywide Issues | Ohio | Statewide OH | Violence

Ohio Keeps Oil Train Shipment Timing Secret – Media Complains
July 14, 2014July 14, 2014

Last week MDN told you that eight so-called environmental groups are attempting to use a Freedom of Information Law (FOIL) request to force New York State to divulge when large shipments of oil are crossing the state by railroad–making a perfect target for terrorists (see NY Enviro Groups Seek to Use Oil Trains to Their Advantage). A number of other states are facing the same issue–whether or not to divulge the timing of rail shipments of Bakken light crude oil. One of those states is Ohio, and fortunately for Ohioans, the state has decided to keep the timing of oil shipments secret, to avoid (as MDN has pointed out) making shipments an easy target for terrorists…
Read More “Ohio Keeps Oil Train Shipment Timing Secret – Media Complains”
Anti-Drilling/Fossil Fuel | CNG/LNG | Industrywide Issues

Anti-Cove Point LNG Protest in DC Flops Bigtime
July 14, 2014July 14, 2014

Well that certainly went bust. Last week MDN told you that anti-drillers would protest yesterday (Sunday) on the Mall in Washington, DC against the already approved Cove Point, MD LNG export facility (see Anti-Drilling Rally Against Cove Point LNG Plant in DC on Sunday). We found one blog site that covered the rally. The only “news” site we could find that ran a story was the terrorist-loving Al Jazeera America (formerly Al Gore’s network). Why no coverage? Because a max of maybe 200 people even bothered to show up. In the same philosophical vein of “If a tree falls in the forest and no one is around to hear it, does it make a sound?” We ask: “If a protest rally is held in Washington and no reporters show up, did it really happen?”…
Read More “Anti-Cove Point LNG Protest in DC Flops Bigtime”
Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA

Commerce Dept Slaps Foreign Countries for Steel Pipe Dumping
July 14, 2014July 14, 2014

MDN has kept an eye on the developing story of foreign countries–particular South Korea–“dumping” cheap steel pipes in the U.S., pipes used in the shale drilling industry (see US Senators Join Chorus: “Illegal” Steel Pipe Dumping by S Korea and “Dumping” Leads to 177 Jobs Lost at PA Marcellus Pipeline Plant). Seems that the Obama Commerce Department agrees and has taken decisive action to put an end to it. Last Friday the Commerce Department slapped a stiff tariff (i.e. tax) on tubular goods (steel pipes) coming in to the U.S. from South Korea and eight other countries…
Read More “Commerce Dept Slaps Foreign Countries for Steel Pipe Dumping”
Appalachian Oilfield Services | Crime | Energy Services | Industrywide Issues | Ohio | Statewide OH

Feds Slap Appalachian Oilfield Svcs with $129,802 for Back Wages
July 11, 2014July 11, 2014

The federal government has slapped Appalachian Oilfield Services with a hefty fine. The U.S. Dept. of Labor investigated the company and found they were shorting employees by not paying them overtime. So 25 Appalachian employees working in Ohio will be given $129,802 in back wages/overtime according to an announcement by the DOL. Appalachian Oilfield Services is based in Lafayette, LA but as the name suggests, they focus on northeast drilling–providing equipment and personnel to assist with fracking operations. The company has an office in New Matamoras, OH. Here’s the feds tooting their own horn…
Read More “Feds Slap Appalachian Oilfield Svcs with $129,802 for Back Wages”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA Budget Signed by Gov. Corbett – No Severance Tax This Year
July 11, 2014July 11, 2014

Pennsylvania Gov. Tom Corbett, a Republican, signed a Republican-passed budget for the state yesterday. The budget, thankfully, does not include a Marcellus Shale severance tax. It does, however, include new regulations that separate drilling standards between conventional (vertical only) and unconventional (shale) drilling. MDN has long chronicled the battle by PA’s Democrats to transfer wealth from the drilling industry to PA schools, and in the process kill the goose laying the golden eggs in PA (see PPG Op-Ed: Don’t Kill the Marcellus Goose Laying the Golden Eggs). In signing the budget, Corbett axed a bunch of money from the legislature’s budget, which has led to a Republican civil war in Harrisburg…
Read More “PA Budget Signed by Gov. Corbett – No Severance Tax This Year”
Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Trucking | Washington County

Range’s Next Battle in Robinson Twp: Water Tank Facility
July 11, 2014July 11, 2014

In May MDN told you that after a two-year intentional delay by Robinson Township (Washington County), PA, Range Resources finally won the right to move forward with drilling two wells (see Range Resources Finally Wins Case to Drill 2 Wells in Robinson Twp). Robinson is one of the seven selfish towns that sued Pennsylvania over zoning provisions in the Act 13 law–a case they eventually won. Robinson tries to block drilling as much as they can–but the court has goosed them and told them they can’t stop all of it. Range’s next battle is whether or not Robinson will allow them to build a “tank pad”–a pad with tanks to store fresh water used in drilling and fracking operations…
Read More “Range’s Next Battle in Robinson Twp: Water Tank Facility”