Industrywide Issues

Anti-Drilling/Fossil Fuel | Cuyahoga County | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation | Statewide OH

2 OH Anti-Drilling Dems Miffed at Being Fingered in ODNR Memo
February 19, 2014February 19, 2014

Yesterday MDN told you about the Ohio Dept. of Natural Resources’ innovative strategy to deal with the issue of drilling under (not on) a state forest and two state parks. Frankly, the came up with a brilliant public relations plan (see ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan). But they decided in the end not to pursue the plan, knowing about the loud (and foul) mouthed opposition they would face. Listed by name in the list of dunderheads who oppose shale drilling in the state were none other than OH Rep. Robert Hagan, Democrat from Youngstown, and OH Rep. Nickie Antonio, Democrat from Lakewood (notice a trend here?). The two have called on the Speaker of the Ohio House to launch an investigation into what they creatively call “Frackgate”. It will never happen, but that’s not the point.

We’d say Representatives Hagan and Antonio are up to their necks in…fracking waste. But then that would be unkind, wouldn’t it? So we’ll just say this is “more of the same” and gives the anti-drilling Hagan and Antonio an excuse to (once again) trot out the same old tired lies they’ve told a thousand times before. Here’s 1001…
Read More “2 OH Anti-Drilling Dems Miffed at Being Fingered in ODNR Memo”
Anti-Drilling/Fossil Fuel | Athens County | Crime | Industrywide Issues | Ohio | Wastewater

Break the Law in OH, Get an Award – Anti-Drilling Nuttery on Display
February 19, 2014February 19, 2014

Here’s a life lesson for the kiddies: Start an “organic” farm, and when you don’t get a lot of business because your prices are twice those of everyone else, become a shrill anti-driller and claim Mother Earth is getting poisoned by evil fracking (gets you noticed). Then, take “direct action” against those nasty drillers, which is a euphemism for break the law. And when you’re done, receive an award for it! That’s the brief story of Gilbert (Kip) Rondy, co-owner of Green Edge Gardens in Amesville, OH.

Rondy is one of the so-called “Athens 8” arrested for illegally blocking access to an injection well site near Athens, OH. To reward his illegal behavior, the Ohio Ecological Food and Farm Association is bestowing on him their Stewardship Award. How nice. We wonder, how would Rondy like it if a group a pro-drillers showed up and blocked access to his organic farm for oh, say a week or so? Would that be worthy of an award too?…
Read More “Break the Law in OH, Get an Award – Anti-Drilling Nuttery on Display”
Anti-Drilling/Fossil Fuel | Belmont County | Hydraulic Fracturing | Industrywide Issues | Monroe County | Noble County | Ohio | Public Opinion | Regulation | Statewide OH | Utica Shale | Violence

ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan
February 18, 2014February 18, 2014

In August of 2012 staffers at the Ohio Dept. of Natural Resources (ODNR) made a boo-boo. They put into writing (in the form of a 13-page memo, embedded below) a draft plan to promote Utica Shale drilling under (not on) Sunfish Creek State Forest (in Monroe County), under (not on) Barkcamp State Park (in Belmont County), and under (not on) Wolf Run State Park (Noble County). The memo begins by saying there will be a communications problem to solve: “An initiative to proactively open state park and forest land to horizontal drilling/hydraulic fracturing will be met with zealous resistance by environmental activist opponents, who are skilled propagandists. Neutral parties in particular — such as ordinary citizens concerned about their families’ health — will be vulnerable to messaging by opponents that the initiative represents dangerous and radical state policy by Gov. Kasich.” (emphasis original) The memo states later on that, “Anti-fracking activists will attempt to legally and physically disrupt or halt the drilling projects, including staging dangerous protests on state lands. (This will require sustained legal countermeasures and crisis readiness by ODNR.)”

May we translate? Groups like the Sierra Club lie to people about the drilling issue–and they sometimes engage in bullying (and violent) behavior. Of course the Sierra Club liars are just a bit miffed at being called out as liars and bullies–by no less than a state agency charged with regulating oil and gas. So they are on the offensive. The first thing the Sierra Club and similar groups will do (are doing) is to get their buddies in the slavishly devoted mainstream media to pick up their “ODNR are scumbags” meme and run with it. The second thing is they will use the ODNR memo in fundraising letters, which is really what the shale drilling issue is for them–a big, fat fundraiser…
Read More “ODNR Ticks Off Anti-Drilling Sierra Club with Drilling PR Plan”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OOGA Actually Surprised at Double-cross in Severance Tax Deal
February 18, 2014February 18, 2014

This one is really kind of funny. The Ohio Oil & Gas Association (OOGA) made nicey nice with Ohio’s Republicans in Name Only (RINOs), and supported a small, modest, ever-so-tiny severance tax increase (that we lambasted here: OOGA Caves, Endorses New Higher Tax on OH Utica Shale).

Even before the ink was dry and before the proposed law is brought up for a vote, those same slimy RINO politicians have done a double-cross and raised the tax rate in the bill. And OOGA is actually surprised! We hate to say we told you so (but we did)…
Read More “OOGA Actually Surprised at Double-cross in Severance Tax Deal”
Clearfield County | Industrywide Issues | Pennsylvania | Regulation | Wastewater

New Wastewater Injection Well Approved in Clearfield County, PA
February 18, 2014February 18, 2014

The federal Environmental Protection Agency has approved a new injection well in Clearfield County, PA. Windfall Oil and Gas received the permit allowing them to build an injection well in Brady Township that will pump wastewater from oil and gas drilling, including shale drilling, some 7,300 feet down for permanent disposal. (Self-serving advertisement: For a complete list of existing PA injection wells used by Marcellus drillers, see the just-published Marcellus and Utica Shale Databook, Volume 3.)

Clearfield County is located roughly in the center of the state, so it’s a good location for both northeastern and southwestern shale drillers. Here’s the details about this newest injection well coming to PA:
Read More “New Wastewater Injection Well Approved in Clearfield County, PA”
Chesapeake Energy | Elexco Land Services | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Do PA Drillers have Law on Their Side in Royalty Debate?
February 18, 2014February 18, 2014

A sharp MDN reader, John S., emailed MDN to remind us of how PA landowners ended up in the quagmire they are now in with regard to royalties with drillers (like Chesapeake) deducting post-production expenses from what they pay to landowners. We had forgotten about the Kilmer v ElexCo Land Services case from March 2010 in which the PA Supreme Court ruled that drillers could indeed deduct certain post-production expenses without violating the law that says landowners must be paid a 12.5% minimum royalty (see Breaking News: PA Supreme Court Rules Against Landowner Seeking to Invalidate Lease).

PA Gov. Tom Corbett wrote a letter to Doug “the ax” Lawler at Chesapeake telling him the company’s royalty calculations were unfair at best, and perhaps illegal. Doug just has to point to the 2010 PA Supreme Court case. Here’s more information about the 2010 case and what the decision means, and doesn’t mean:
Read More “Do PA Drillers have Law on Their Side in Royalty Debate?”
Energy Companies | EQT Corp | Industrywide Issues | Reserves (Proved and Unproved) | Utica Shale

EQT 2013 Year in Review: Proved Reserves Up 38% from 2012
February 18, 2014February 18, 2014

EQT became the latest driller to announce huge volumes of proved reserves in the Marcellus and northeast shale plays–8.3 trillion cubic feet equivalent, to be exact. That’s up 2.3 Tcfe (or 38%) from just a year ago. Total proved, probable and possible (3P) reserves by end of 2013 stood at 36.4 Tcfe, an increase of 10.5 Tcfe, or 40%, over the 2012. They also doubled net income during 4Q13 over 4Q12. Clearly this is a company on the grow–particularly in the Marcellus.

Here’s a look back at EQT’s stellar 2013, by the numbers…
Read More “EQT 2013 Year in Review: Proved Reserves Up 38% from 2012”
Accidents | Energy Services | Industrywide Issues | Pipelines | Public Opinion | Williams

KY Natgas Pipeline Explosion Used to Fight Bluegrass NGL Pipeline
February 18, 2014February 18, 2014

Last Thursday a section of the Columbia Gulf Transmission Line 200 30-inch natural gas pipeline exploded in rural northern Kentucky (Adair County). These kinds of things unfortunately do happen from time to time. Two people were slightly injured (treated and released). Two nearby houses were destroyed. Emergency shut-off procedures worked. The cause is still not known and nearly a week later the story has all but disappeared from the news.

Although an accident and tragedy, the real damage (potentially) is for the Bluegrass NGL pipeline that Williams is trying to build through Kentucky. The Bluegrass is already facing stiff opposition, as we’ve written about a number of times (see Bluegrass NGL Pipeline Hits Brick Wall in the Bluegrass State). Williams felt it necessary to invoke eminent domain because of the problems they’ve faced in Kentucky, a decision that’s still tied up in court (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court). Those opposed to drilling and the Bluegrass pipeline will no doubt shamelessly use the Columbia pipeline explosion as fuel for their cause…
Read More “KY Natgas Pipeline Explosion Used to Fight Bluegrass NGL Pipeline”
Ethane | Exporting | Industrywide Issues | Pipelines | Processing Plants

The Complex Issue of Ethane – Pipelines, Cracker Plants & Exports
February 18, 2014February 18, 2014

Ethane–a natural gas liquid (NGL)–is bountiful in parts of the Marcellus and Utica Shale. So bountiful, it’s causing problems. Until very recently, ethane was considered a waste product. You either had to burn it (increasingly hard to do because of regulations), or blend it with methane. It has been a cost center when in fact ethane is normally a profit center–something that makes drillers money. But you can only make money on it if you can get it to market.

Enter several ethane-specific, and coming soon, NGL pipelines that can carry ethane (and other NGLs) to the Gulf Coast, Canada or Philadelphia for processing and sale. The problem is, if you don’t have a long-term contract on one of those pipelines, you’re hosed. Your competitors are making money on ethane while you’re still spending money on it. That, in a nutshell, is why two regional ethane cracker plants are so desperately needed (Shell’s cracker plant in Beaver County, PA and Odebrecht’s cracker in Parkersburg, WV). The Pittsburgh Tribune-Review took an in-depth look at “the ethane issue” last Friday. It’s a good article providing us with insights into the complex issue of what drillers can/should/are doing with ethane:
Read More “The Complex Issue of Ethane – Pipelines, Cracker Plants & Exports”
Anti-Drilling/Fossil Fuel | Cuyahoga County | Industrywide Issues | Lease & Royalty Payments | Ohio | Utica Shale

Cleveland Suburb’s Socialist Model for Restricting Utica Drilling
February 18, 2014February 18, 2014

Is Utica Shale drilling on the way to the Cleveland, OH area? It is if you listen to the mayor of the Cleveland uppity suburb of Gates Mills. Mayor Shawn Reilly wants landowners in Gates Mills to lock themselves into restrictive land trust deals–you know, to “manage” all that nasty, evil drilling if/when it gets there–in an estimated 10-12 years. This is not your typical landowner coalition being suggested. The good mayor wants landowners to sign over their mineral rights (via deed) to a “trust” managed by people appointed by the village (copy of the proposal embedded below). MDN’s advice to landowners in Gates Mills–run! Absolutely do not assign your mineral rights to a socialist organization that will not have your best interests at heart.

Here’s an article full of errors–like it takes 200 acres for a horizontal drill pad, when it actually takes about 20 acres…
Read More “Cleveland Suburb’s Socialist Model for Restricting Utica Drilling”
Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania

Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans
February 17, 2014February 17, 2014

Landowners in Bradford County, PA feel like they’re getting screwed by Chesapeake Energy on royalty payments, a complaint they’ve been making for some time now (see Bradford County, PA Landowners Sue Chesapeake over Royalties). PA state law guarantees a minimum 12.5% royalty to landowners, but because Chesapeake keeps deducting post-production expenses (like pipeline costs, processing costs, perhaps marketing costs), landowners end up getting squat–in some cases a 1.5% royalty. The landowners have some righteous anger over the issue. More than 100 landowners and officials gathered at the Bradford County Courthouse in Towanda on Friday in a rally to raise awareness of the issue and to support passage of PA House Bill 1648, which would protect landowners from large deductions from their royalty checks for post-production costs.

We applaud these landowners and their elected representatives for seeking justice in this situation. The problem is, they’ve invited a fox into the hen house to help them out. State Senator Gene Yaw, whose district includes Bradford County, along with PA Gov. Tom Corbett, has asked PA’s anti-drilling Attorney General, Kathleen Kane, to investigate Chesapeake and this matter of landowners getting shorted on royalty payments. She’s only too glad to “help out.” Normally that would be a good thing, except Kane is just as likely to turn around and bite the people she’s supposed to be helping. She hasn’t met a driller yet she wouldn’t rather see behind bars (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). If it were up to Kathleen Kane, there would be no Marcellus drilling at all and consequently no royalties for landowners to argue about. We think it’s an ill-advised move to involve Kane, but that’s just our humble opinion…
Read More “Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans”
Anti-Drilling/Fossil Fuel | Broome County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Shame & IgnomiNY: Cuomo Sued by 70K NY Residents over Frack Delay
February 17, 2014February 17, 2014

The shame and ignominy of being sued by residents of your own state to do you job. That’s what happened to Gov. Andrew “Can’t Make a Decision” Cuomo on Friday when the 70,000-member Joint Landowners Coalition of New York filed an Article 78 lawsuit last Friday (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah). You might think 70,000 residents suing a governor would be important news–even the whiff of something like that should rate at least a mention in the news, right? If you live in Binghamton (where the JLCNY is headquartered), and your newspaper is a local liberal Gannett newspaper–that answer would be: “wrong.” In the lead-up to the lawsuit being filed, the Binghamton Press & Sun-Bulletin obstinately (and angrily) refused to cover the story. They censored it. It was only after MDN friend and intrepid blogger Andy Leahy, writer of NY Shale Gas Now! prodded and poked and agitated the great dragon did they finally deign to post an article about the lawsuit.

The article finally appeared in the Saturday, Feb 15 edition (the day no one reads the paper). To their credit, it was a front-page story–“above the fold.” But it was tucked along the right side (see the front page of that issue below). What, you may ask, was the all-important lead news item dominating the front page, taking up more than half of the editorial space? An open house at Binghamton University. Talk about journalistic integrity and keen insight–people with a real bead on what’s important for readers. Those editors at the PSB, there’re a sharp bunch…
Read More “Shame & IgnomiNY: Cuomo Sued by 70K NY Residents over Frack Delay”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Chevron Well Fire Update: Fire Spreads to 2nd Well, Both Fires Out
February 17, 2014February 17, 2014

MDN previously told you about an explosion and well fire at a Chevron drilling site in Greene County, PA last Tuesday (see Explosion & Fire at Chevron Well in SWPA – 1 Person Missing). We then brought you Chevron’s series of updates on progress (or lack thereof) in extinguishing the fire and locating a missing worker (see Update: Chevron Well Fire in Greene County Still Burning). On Saturday, a second well at the pad caught fire and started to burn–something Chevron feared may happen. However, as of 3 pm on Saturday, both well fires were out, although Chevron isn’t quite sure why (theory: lack of gas to fuel them). The very careful work of removing a badly burned crane now begins so Chevron can start “well intervention work.”

There is still, so far, no sign of the missing worker, who is presumed dead. Chevron has issued a steady flow of updates on their website. Below are the most recent three updates issued (since the first four we brought you), which gives a timeline for what’s happened at the site since the explosion…
Read More “Chevron Well Fire Update: Fire Spreads to 2nd Well, Both Fires Out”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Chevron Well Fire Victim – Native of Warren County, PA
February 17, 2014February 17, 2014

Although we’ve not heard the missing worker at the site of a Chevron well fire in Greene County, PA has been located, we do now know who it is that is missing. His name is Ian McKee and he’s a native of Warren County, PA. Ian works for Cameron International, the sub-contractor working on completing and hooking up the shale well to a gathering pipeline.

A prayer vigil was held for Ian last Thursday night…
Read More “Chevron Well Fire Victim – Native of Warren County, PA”
CONSOL Energy | Energy Companies | Ethane | Exporting | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA

CONSOL to Begin Ethane Shipments Next Year–to Europe?!
February 17, 2014February 17, 2014

CONSOL Energy is a big, important driller in the Marcellus and Utica Shale. Most of their operations are in “wet gas” areas–those locations that produce a lot of natural gas liquids (NGLs), like ethane, along with “dry gas” or methane. Although CONSOL has a lot of acreage in southwestern PA and in WV and eastern OH, the ethane they produce will not be going to a proposed new ethane cracker plant being built by Odebrecht in Parkersburg, WV. Instead, CONSOL is going to send their ethane by pipeline to an export facility in Philadelphia, and from there, on to Europe for processing and use in European petrochemical factories.

Why in the world ship ethane all the way to Europe for processing instead of selling it in your own back yard? Timing. CONSOL doesn’t want to wait the 4-5 years for an ethane cracker to be built (if it’s built at all). They’ve adopted a “bird in hand” strategy. They’d rather start shipping it next year, when Sunoco Logstics’ Mariner East pipeline is up and running, rather than wait. And so CONSOL, according to their announcement below, has locked in a deal with Ineos Europe AG. But don’t despair, CONSOL also previously signed an agreement with Shell to provide its cracker plant in Beaver County, PA with ethane–when and if that plant gets built…
Read More “CONSOL to Begin Ethane Shipments Next Year–to Europe?!”
Energy Services | Ethane | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia | Williams

Williams’ Oak Grove, WV Plant (Slowly) Gets New De-Ethanizer
February 17, 2014February 17, 2014

The Oak Grove processing plant in Marshall County, WV is about to get its first de-ethanizer, a huge piece of equipment that strips ethane from “wet gas” so it can be sold, via pipeline. Until recently most ethane in the northeast has been a waste product for drillers–something that’s blended with other hydrocarbons or even burned (flared) to get rid of. However, with two new ethane pipelines up and running–one to Sarnia, Canada (Mariner West) and one to the Gulf Coast (ATEX), ethane is a valuable commodity. And so Williams is adding a de-ethanizer to their still-under-construction Oak Grove processing plant.

The de-ethanizer recently arrived by train at Benwood CSX rail yard along the Ohio River. Now the 123-feet long (and 14 feet wide) piece of equipment will go on a very special “superload” truck and it will take 3 days to go just 30 miles to reach the Oak Grove site. If you live in WV, you might want to reconsider plans to travel along routes WV-88 or US-250 later this week, unless you like moving along at 5 miles per hour…
Read More “Williams’ Oak Grove, WV Plant (Slowly) Gets New De-Ethanizer”