Industrywide Issues

American Water Management | Earthquakes | Energy Services | Industrywide Issues | Mahoning County | Ohio | Regulation | Trumbull County | Wastewater

OH Earthquakes May Delay Opening of New Niles Injection Well
March 24, 2014March 24, 2014

Although Niles (Trumbull County), Ohio is about 18 miles from Poland (Mahoning County), Ohio by car, it’s only about 8-9 miles “as the crow flies.” And that proximity may be a problem for a new Class II frack wastewater injection well set to open in just a few weeks in Niles. Why? Because nearby Poland is where there was a recent series of earthquakes (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?).

American Water Management Services Inc. say they are about two weeks away from opening their new injection well in Niles–or could open if they get the necessary permits. The Ohio Dept. of Natural Resources (ODNR) says it’s too early to say whether or not the new injection well will be allowed to open in the next few weeks because of the ongoing earthquake investigation…
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Blair County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Supply Chain

Companies Flock to Blair County, PA to Serve Marcellus Industry
March 24, 2014March 24, 2014

Blair County, PA (home of Altoona) doesn’t have active Marcellus or Utica Shale drilling. But that doesn’t mean the industry hasn’t been an economic boom for the county. Because it is located at the doorstep of wet gas drilling in southwestern PA, and not all that far from dry gas drilling in northeastern PA, Blair is quickly becoming supply chain central for the drilling industry. In May 2012 MDN told you about a new pump plant setting up in Blair to service the industry (see Altoona Scores a New Pump Plant for the Marcellus). According to the plant manager, 2013 was a banner year and they “exceeded all of our targets and projections.”

HalenHardy LLC, a company that created and manufactures an innovative mobile air unit to suck silica dust off workers’ clothes, opened in Blair in January 2013. HalenHardy won an award last September for their technology (see HalenHardy Wins Ben Franklin EHS Award for Silica Air Shower). They won a second award for their technology last week–at the Oil & Gas Awards (more on that this week, check back). A second Oil & Gas Awards winner has also set up shop in Blair County–Drill Baby Drill Staffing. Read on to learn about other companies that have located and are now flourishing in Blair County–companies aimed at providing products and services for the Marcellus Shale industry…
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Regulation | Williams

Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline
March 24, 2014March 24, 2014

The Bluegrass natural gas liquids (NGL) pipeline is a $1.5 billion project that will stretch from the Utica/Marcellus all the way to Gulf Coast. It’s being built by Williams and Boardwalk Pipeline Partners and as of last October the joint venture partners held an open season and said everything is on track for a 2015 launch (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). But a lot has happened in the past six months, including Boardwalk’s stock tanking (see Serious Concerns about Boardwalk Pipeline Partners Continue). Not only that, but there’s been a lot of anti-pipeline sentiment in Kentucky–one of the states the new pipeline must cross on its way to the Gulf Coast. So much anti-pipeline sentiment that Boardwalk and Williams have threatened using eminent domain in order to get the property they need for a crossing (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court).

The eminent domain issue is coming to a head in Kentucky with respect to the Bluegrass Pipeline. Last Friday the KY House voted to approve House Bill (HB) 31 which will strip NGL pipelines of their right to use eminent domain in the state. The measure now heads to the Senate. What are its chances? No one is saying, although Boardwalk and Williams have hired no less than nine lobbyists to make their case with KY lawmakers…
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Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Research | Statewide WV | West Virginia | Wood County

Report: Coming Economic Miracle in WV from Ethane Cracker Plant
March 24, 2014March 24, 2014

In February MDN told you about a newly released research report from Tom Witt, economist and former director of West Virginia University’s Bureau of Business and Economic Research and professor emeritus at WVU. Witt, now a private consultant, took a close look at realistic numbers for how many jobs and how much money the proposed Odebrecht ethane cracker and associated petrochemical plants will generate for WV and the region (see Economist Releases Report on WV Cracker Plant’s Economic Impact). The numbers are truly astonishing.

In February we could not get our hands a copy of the study, which is titled “Building Value from Shale Gas: The Promise of Expanding Petrochemicals in West Virginia.” We now have a full copy and have embedded it below. We also have an editorial written by Witt and published a few days ago describing the study and his take on the coming economic miracle in WV from Odebrecht’s ethane cracker plant…
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Crosstex Energy | Devon Energy | Energy Companies | Energy Services | EnLink Midstream | Industrywide Issues | M&A

Crosstex Investors Cash in on Merger, Selling 18M Units for $550M
March 24, 2014March 24, 2014

Crosstex Energy recently got hitched with the midstream operation of Devon Energy and the new couple gave birth, or rather transformed itself, into EnLink Midstream (see Time to Congratulate Devon & Crosstex on the Birth of EnLink).The new EnLink has a growing presence in both the Utica and Marcellus Shale. They are a “player” in our space, so we keep a close eye on them.

Last Friday the newly combined and renamed EnLink announced owners of 18 million shares of stock in EnLink (called units) have put their shares up for sale with an eye to raising $550 million. However, that money will not flow to the coffers of EnLink. It will go to the owners of the units–presumably top management and/or investors in the old Crosstex. The action does make us wonder: Is this a prelude to some of top management leaving EnLink, or just big money investors cashing in to realize a big ROI? We don’t know. Here’s the announcement from Friday:
Read More “Crosstex Investors Cash in on Merger, Selling 18M Units for $550M”
Industrywide Issues | Marshall County | Roads | Statewide WV | Taxation | West Virginia

WV Roads in Need of Repair – Fracking to Blame?
March 24, 2014March 24, 2014

There are a number of roadways in Marshall County and other WV counties with active Marcellus and Utica drilling in need of repair. There is no doubt frequent truck traffic related to the drilling industry is partially at fault. However, truck traffic coupled with a brutally cold winter, seems to have made it worse. Not that roads in many WV communities were pristine to begin with! Just ask any driller operating in WV–the roads in WV suck. There’s just no nice way of saying it. They were not good before drilling, so drilling is not totally to blame.

Still, drilling truck traffic has made it worse. So the industry should pay for repairs, right? Well…they already do. It’s called a 5% severance tax paid by drillers on everything they produce. The drillers are certainly paying it. If the state is not sharing that money with local counties for much-needed road repairs–that’s not the drillers’ fault…
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Anadarko | Anti-Drilling/Fossil Fuel | Crime | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania

Protesters Shut Down Anadarko Drill Site in Lycoming County, PA
March 21, 2014March 21, 2014

The very twisted philosophy of so-called “Earth First” group members seems to be that humans are an infestation on Mother Earth, hence the name (full of self-loathing people, apparently). A group of Earth Firsters, most of them not from Pennsylvania, protested and shut down an Anadarko Petroleum drilling site in PA yesterday. Anadarko owns leases land in the Tiadaghton State Forest in Lycoming County, PA where they have an active drilling site (near Williamsport). Three of the protesters locked themselves to a solid concrete pipe embedded with shrapnel that reached across the road blocking the way to the drill site. The protesters had to be cut free at great personal danger to themselves and the first responders who cut them free. Five protesters in all were arrested.

MDN received exclusive photos from someone at the scene (below). We’ve also located a video showing the shrapnel embedded in a solid concrete pipe–and the gentle care the local first responders took in protecting the protesters as they cut them free. First responders put their own lives at risk to free these idiots. We would have been far less gentle (picking the whole thing up with a forklift and dropping it on the side of the road–with these kooks attached–comes to mind). Read the news, look at the photos, and be sure to watch the video below to see what we’re up against with extreme Earth First nutters…
Read More “Protesters Shut Down Anadarko Drill Site in Lycoming County, PA”
Earthquakes | Hydraulic Fracturing | Industrywide Issues

Fracking has (so far) Triggered Earthquakes 3x – Out of 60K Wells
March 21, 2014March 21, 2014

MDN has been following the story of 11 small earthquakes in the Youngstown, Ohio area early last week (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?). We pointed out in that story that we are aware of exactly one proven instance where fracking a well has caused an earthquake–in England. Yesterday we ran a story about the PA DEP granting permits to Hilcorp to drill 7 new wells just 6 miles away from where Hilcorp voluntarily stopped drilling in Ohio while Ohio officials check out a possible connection between their drilling and the earthquakes (see Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone).

In yesterday’s story we made the statement that “fracking simply does not cause earthquakes.” That statement was our short-hand way of saying “almost never, statistically never” but as one MDN reader pointed out, “not” means “100% not” and so our statement was factually incorrect. For that we apologize and want to correct the record and tell you about the three known times fracking has caused earthquakes…
Read More “Fracking has (so far) Triggered Earthquakes 3x – Out of 60K Wells”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Shale Industry Demonized for “Lack” of Severance Tax
March 21, 2014March 21, 2014

The Democrats in Pennsylvania are bound and determined to impose a nosebleed severance tax on shale drilling in the state. Their latest effort comes from the partisan so-called Independent Fiscal Office, a branch of the state legislature, that just released an apples to oranges comparison of PA with other states claiming PA doesn’t pay as much in taxes as those other states. Of course what the very flawed analysis by the IFO doesn’t show are all of the other taxes and fees in PA not levied in those other states that more than make up for the “lack” of a severance tax.

PA Dems seem to have the philosophy that 100% of the money earned by other people (drillers in this case) belongs to the state (i.e. them) for redistribution purposes, and how dare the industry oppose them from extracting 5%, or preferably 10%, right off the top (see PA State Treasurer Rob McCord Unveils Gas Death Plan). Here’s the latest salvo in the PA Dem war to regain the governor’s chair this November by demonizing the shale industry as not paying their “fair share”…
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Anti-Drilling/Fossil Fuel | Chautauqua County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Chautauqua County Fed Pack of Lies about Fracking, Considers Ban
March 21, 2014March 21, 2014

And so it begins. MDN told you yesterday about the City of Dunkirk, NY that has bitten off the natural gas hand that feed them–by passing a fracking ban (see Dunkirk, NY City Council Bites Off the NatGas Hand that Feeds It). The dolts on Dunkirk City Council said they want the entire county–Chautauqua County–to follow suit and ban fracking countywide. County legislators attended a special session Wednesday night where they heard some truth, and a whole lotta lies, about hydraulic fracturing.

Here’s how it went…
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Industrywide Issues | Regulation | Statewide WV | Taxation | West Virginia

Back to the Future (Fund) – WV Gov. Tomblin Signs New Law
March 21, 2014March 21, 2014

Last year a bunch of West Virginia lawmakers went on a quick vacation to North Dakota (of all places), at a cost of $25,000 to WV taxpayers, to try and convince those lawmakers to look at and adopt a “future fund” similar to ND’s “legacy fund” (see 18 WV Lawmakers Flying to ND for a $20K Overnighter on Drill Tax). The Future Fund bill, which would set aside 3% of revenue raised from WV’s oil and gas severance tax in a rainy day fund, came up for a vote a few weeks ago. It passed, but not the way hoped for (see Fate of 3 WV Laws that Impact Marcellus/Utica Drilling). The final bill was altered so that only if certain economic conditions are met would the 3% be set aside.

However, that makes no difference when it comes to photo ops. Yesterday WV Gov. Earl Ray Tomblin signed the bill into law and the headlines today all ready that WV now has a Future Fund and the state’s politicians are almost breaking their arms patting themselves on the back–even though it’s doubtful that money will be set aside for years to come…
Read More “Back to the Future (Fund) – WV Gov. Tomblin Signs New Law”
Industrywide Issues | Ohio | Statewide OH | Supply Chain

FL Company Gets Contract to Process Chemical Sludge in Marcellus
March 21, 2014March 21, 2014

Handex Industrial Services (HIS), based in Winter Park, FL, announced yesterday that they’ve been awarded a $750,000 contract to clean and treat chemical “sludge” left over from treating frack wastewater for…someone. The customer is not named. Actually, we think the press release from HIS is a bit screwed up. It says the contract is with “an environmental engineering and consulting firm conducting hydraulic fracturing.” We think they mean “an oilfield services firm.” We’re not aware of any engineering firms that do fracking. Where is the unnamed company located? “…the Marcellus Shale Formation in east central Ohio.” Er, we think they mean the Utica Shale in east central Ohio. Is there Marcellus there? Yes. But not a lot of drilling in the Marcellus layer in that area at this time.

At any rate, our point is this: A Florida company is doing work on cleaning up leftover chemical waste from frack wastewater. Other drillers/oilfield companies may be interested in knowing that, and other companies that can do the same thing located in the northeast should pay attention to the opportunities in their own back yard. Here’s the somewhat hard-to-understand press release from HIS:
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Economic Impact | Industrywide Issues | Jobs | Research

America’s Cities Big Winners from Cheap Marcellus Shale Gas
March 21, 2014March 21, 2014

Yesterday the U.S. Conference of Mayors released a new study from IHS that shows the positive impact inexpensive and abundant natural gas is having on the manufacturing sector. Titled “Impact of the Manufacturing Renaissance from Energy Intensive Sectors” (full copy embedded below), the report provides analysis and detailed data on the impact for jobs and the economy in 363 metro areas across the United States. Nine key sectors are analyzed, including: Basic organic chemicals; iron and steel mills; fabricated metals; machinery; nonmetallic minerals; resin, rubber and fiber; plastics and rubber; agricultural chemicals; and petroleum and coal products. According to the report, in 2011 and 2012, demand from the Marcellus and other growing shale plays for new pipelines and mining equipment ignited the nation’s steel, iron, fabricated metals, and machinery manufacturing industries. In U.S. metro areas, these sectors saw real sales and employment jump by 17% and 9.7%, respectively, during those years.

Through 2020, the report projects energy intensive manufacturing employment will expand by more than 1% annually nationwide, with 72% of those jobs coming in metro areas. That is, America’s cities are the beneficiaries, both economically and in job growth, because of cheap natgas. Below are the key findings of the report, followed by a full copy…
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Anti-Drilling/Fossil Fuel | Chautauqua County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Dunkirk, NY City Council Bites Off the NatGas Hand that Feeds It
March 20, 2014March 20, 2014

Talk about biting (off) the hand that feeds you. Get this one: The dunderheaded City Council members of Dunkirk, NY (near Buffalo) voted yesterday to ban fracking. Not only that, they want the entire county to follow suit! City Council members recited, almost chapter and verse, the same worn-out old lies told in Gasland, the fictitious movie from Josh Fox. After reading their comments we’re left to think the sum total of research done by the braintrust in Dunkirk into fracking was to munch popcorn and watch a movie. They apparently bought it hook, line and sinker. What dolts.

Here’s the thing. Three months ago almost to the day Andrew “can’t make a decision” Cuomo visited Dunkirk to tell them that the coal-powered electric generating plant that was about to close, and take some 40% of the local tax contributions to the City with it, had his lordship’s permission to convert to burning natural gas–fracked gas–instead (see Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas). City Council rejoiced. “Yah! We get to keep 40% of the taxes that would have disappeared overnight!” And now? “Ban that evil, nasty fracking.” The very same fracking that will bring natgas from other states to Dunkirk so they can burn it to make electricity. Maybe that electric plant should reconsider its decision and close after all. Hmmm….
Read More “Dunkirk, NY City Council Bites Off the NatGas Hand that Feeds It”
Earthquakes | Energy Companies | Hilcorp Energy | Industrywide Issues | Lawrence County | Mahoning County | Ohio | Pennsylvania

Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone
March 20, 2014March 20, 2014

Oh oh. It appears one hand does not know what the other is doing. Last week a new series of small earthquakes–barely able to be felt, but there all the same–rumbled through the Mahoning Valley–near Youngstown, OH. Because of injection well related earthquakes near Youngstown two years ago, residents are understandably jittery and wonder if the drilling industry is somehow at fault with this new outbreak. So the Ohio Dept. of Natural Resources (ODNR), out of what they call “an abundance of caution,” asked Hilcorp to stop all drilling and fracking activity in the area (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?).

Hilcorp readily complied. We’ve discussed (endlessly) that fracking simply does not cause earthquakes–injection wells can and have caused earthquakes, when injecting fluid over an active fault. However, it’s best to play it safe in this situation. Two days after the earthquakes and Hilcorp’s cessation of drilling in Mahoning County, the Pennsylvania Dept. of Environmental Protection (DEP) awarded Hilcorp permits to drill seven new horizontal shale wells in Lawrence County, PA–about six miles from where they stopped drilling over the border in Ohio. Oops…
Read More “Hilcorp Awarded Permits to Drill 7 New Wells Near Earthquake Zone”
Accidents | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County | Wastewater | Williams

Williams Pipeline Connection in NEPA Leaks Brine Near Local Lake
March 20, 2014March 20, 2014

A Williams pipeline in Susquehanna County, PA used to carry brine (salty water from the depths that comes out long after fracking is done and over) was found leaking earlier this week. A pipeline interchange leaked an unspecified amount of brine and left what appeared to be a copper-colored dust over land owned by the Loomis Lake Association.

The Lake Association is understandably concerned that some of the brine may have leaked into the lake itself. Daily testing is underway to determine if the brine reached the lake. Williams has cleaned up the leftover dust–and the PA Dept. of Environmental Protection is investigating. No one is panicking, but everyone is on high alert and keeping a close eye on the situation…
Read More “Williams Pipeline Connection in NEPA Leaks Brine Near Local Lake”