Industrywide Issues

Ethane | Industrywide Issues | Meetings | Statewide WV | West Virginia | Wood County

WV Marcellus to Manufacturing (M2M) Talks Crackers, Jobs & More
March 27, 2014March 27, 2014

The 2014 Marcellus to Manufacturing Ethane Development Conference (M2M) is part of a larger event taking place this week in Charleston, WV–the West Virginia Construction and Design Expo, being held at the Charleston Civic Center. Yesterday most of the talk at M2M revolved around the Antero Resources announcement that they will provide 30,000 barrels of ethane per day for the proposed Odebrecht cracker plant (see today’s lead story). However, there were other presentations and topics, including jobs, the petrochemical industry in WV, and more.

Here’s a first-hand account of yesterday’s M2M from a Parkersburg reporter:
Read More “WV Marcellus to Manufacturing (M2M) Talks Crackers, Jobs & More”
Accidents | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Sunoco Logistics

Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve
March 27, 2014March 27, 2014

Last Tuesday Sunoco Logistics discovered a 5-inch crack leaking crude oil from their Mid-Valley Pipeline–and the oil was leaking into the Oak Glen Nature Preserve just west of Cincinnati, OH. Ouch. Initial reports were that 10,000 gallons of oil had leaked before the pipeline between Hebron, KY and Lima, OH was shut off. That estimate has been doubled–it’s now thought more than 20,000 gallons of oil leaked. Double ouch.

What does this have to do with Marcellus/Utica shale drilling? Not much. It’s possible some of the oil comes from Ohio–more likely from other locations (we don’t know). Sunoco Logistics is the company that has built (and is building) the Mariner West and Mariner East ethane/NGL pipelines–but it’s a stretch to compare those gas pipelines with the Mid-Valley oil pipeline. The connection between the oil spill and northeast shale drilling is this: MDN editor Jim Willis first learned about the leak at the Oil & Gas Awards’ “Conference for Excellence” last week in Pittsburgh. Jim was sitting next to an official from McCutcheon Enterprises–one of the companies called in to clean up the mess–who told Jim about the spill and his company’s rapid response to work on getting it cleaned up…
Read More “Sunoco Logistics Oil Pipeline Leaks 20K Gal in OH Nature Preserve”
Anchor Drilling Fluids | Energy Services | Industrywide Issues | M&A

Downstream Petrochemical Co Buys Upstream Frack Fluid Co
March 27, 2014March 27, 2014

Calumet Specialty Products Partners, a company that processes crude oil and other feedstocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial and automotive products, has just purchased Anchor Drilling Fluids outright for $235 million in cash. Anchor manufactures drilling mud and frack fluids used in shale drilling in the Marcellus, Utica and just about every other major shale play across the U.S. It certainly makes sense for Calument, a huge chemical company already in the “downstream” petrochemical space to move into chemical manufacturing for the “upstream” exploration and production space.

You may recall Calument is also building a gas-to-liquids (GTL) plant at their Karns, PA location to convert Marcellus Shale gas to diesel fuel (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA). Here’s yesterday’s announcement that Calumet has plunked down $235 million for Anchor Drilling Fluids…
Read More “Downstream Petrochemical Co Buys Upstream Frack Fluid Co”
CNG/LNG | Exporting | Industrywide Issues

Russia, Obama, Europe and Marcellus Shale Gas – They are Related
March 27, 2014March 27, 2014

In a move sure to tick off those on the anti-fossil fuel loony left, yesterday President Obama and members of the European Union issued a joint statement from an economic summit in Brussels, Belgium in which they say (our words): Bring on the LNG exports from the USA! It’s an important signal from Obama that his administration may speed up approvals for facilities that want to export liquefied natural gas (LNG) to Europe and beyond–partially in an effort to weaken Russia’s influence in the region. Europe currently gets 40% of their natural gas from Russia–so if Putin decides to turn off the spigot (as he’s done in the past with Poland and the Ukraine), it can have catastrophic consequences. Europe, and now apparently Obama, are ready to use American shale gas to reduce and even replace gas from Russia.

Even a dolt like Obama is bound to get something right at some point–so let’s give some credit where it’s due. His administration recently approved the Cove Point, Maryland LNG export facility that is being built by Dominion. When it’s operational (2015?) Marcellus Shale gas will be going to India and Japan. More export facilities are waiting to be approved that will move Marcellus and other shale play gas to other countries. Hopefully this new-found interest from the EU will encourage Obama to get on the stick and approve those facilities. Below is the joint statement between the U.S. and the EU, along with an article from The Hill highlighting LNG exports from the good ole US of A…
Read More “Russia, Obama, Europe and Marcellus Shale Gas – They are Related”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

Ohio Republicans About to Go Goose Hunting with Severance Tax?
March 26, 2014March 26, 2014

It seems MDN is not alone in encouraging the weak-kneed Republican politicians in Ohio to not screw up the economic miracle happening in their state by imposing an overzealous severance tax on Utica Shale drilling.

The editorial writers at the Wheeling News-Register think Gov. John Kasich and the House Republicans should tread lightly and make double-dog sure whatever new taxes they vote for, they don’t kill the goose laying the golden eggs in Ohio…
Read More “Ohio Republicans About to Go Goose Hunting with Severance Tax?”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Update: Norse/JLCNY Lawsuit Hearing Date Set for April 25
March 26, 2014March 26, 2014

Sadly, politics in New York State have become so corrupt that even the State Attorney General, Eric Schneiderman, actively works against the interests of the people he’s sworn to protect–the citizens of New York State. Late last year Norse Energy sued Gov. Andrew Cuomo, DEC Commissioner Joe Martens and State Health Commissioner Nirav Shah over their collusion to stop shale drilling in the state (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs). Later, the 70,000-member Joint Landowners Coalition of New York joined that lawsuit (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah).

How has AG Schneiderman reacted? By filing to dismiss the lawsuits and delay (see NY Attorney General Files to Dismiss Norse Lawsuit, More Delays). It’s utterly shameful. The lawsuit was scheduled for a hearing first in January, then moved to February, then March, and now April. It appears Norse and the JLCNY, whose cases are now tied together, will finally get a hearing at the end of April–on the 25th…
Read More “NY Update: Norse/JLCNY Lawsuit Hearing Date Set for April 25”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell

Cracker Plant Talk Spurs Economic Growth in Beaver County, PA
March 26, 2014March 26, 2014

Over the past couple of years the prospects for an ethane cracker plant in Beaver County, PA have swung from wild optimism to wild pessimism and everything in between. Most recently the pendulum has once again tilted negative (see Shell’s Shale Pessimism Signals Worry for Some re PA Cracker). But don’t talk negative to the businesses setting up shop and expanding in Beaver County. The mere talk that it’s possible Shell will build the $2-$3 billion ethane cracker in Monaca has caused a significant uptick in the local economy. One Realtor has said for businesses looking to get a piece of the coming economic pie–you’re already late! Many have already grabbed up space and it’s increasingly difficult to find commercial real estate in the county.

Here is the story of the economic boom already under way in Beaver County just from talk–talk that Shell may build a cracker plant there…
Read More “Cracker Plant Talk Spurs Economic Growth in Beaver County, PA”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | Pipelines | Regulation | Williams

Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY
March 26, 2014March 26, 2014

On Monday MDN brought you the news that the Kentucky House had voted to strip the right to use eminent domain from natural gas liquids pipelines (see Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline). An alert MDN reader predicted the measure wouldn’t get signed into law because the KY Senate president said with only 10 days left in this session, it’s not likely to come up for a vote in the Senate (see Bluegrass Pipeline bill passes House).

Looks like it won’t matter what the KY legislature does. Last December a lawsuit was filed by a group calling itself KURE (Kentuckians United to Restrain Eminent Domain), to prevent the Bluegrass Pipeline from using eminent domain in the Bluegrass state (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court). Yesterday Franklin Circuit Judge Phillip J. Shepherd ruled in KURE’s favor and said the Bluegrass cannot use eminent domain to force landowners to allow the pipeline to be buried under their property…
Read More “Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY”
Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Taxation | West Virginia

Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax
March 26, 2014March 26, 2014

A few weeks ago MDN said the plan floated by lefties and libs to create a so-called uniform severance tax across PA, OH and WV is one of the dumbest things we’ve heard in a long time (see Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV). The plan as proposed means all three states hold hands and jump off the economic cliff together. Apparently it’s more fun to die together (economically) than alone.

MDN is not the only voice to point out the lunacy of this plan. The head of the PA Chamber of Business and Industry also says the proposed mega-tax is nuts. As Gene Barr highlights in the following letter to the editor, it’s apparent the people proposing such a plan–including the Pennsylvania Budget and Policy Center–are ignorant of how taxes in PA and other places actually work. You would think an organization with a name that includes the word “budget” would employ at least one economist or accountant. Apparently they don’t. They are economic illiterates who don’t realize what they are proposing is anything but fair–especially to Pennsylvanians…
Read More “Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax”
Accidents | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Anti-Drillers Attack Crude-by-Rail Traveling Through PA
March 26, 2014March 26, 2014

The leftist anti-drillers at the Pennsylvania news organization called PublicSource, backed by the likes of Teresa Heinz Kerry, is taking aim at shale-produced crude oil that travels by railroad. In a hit piece in which they begin by doing a bait-and-switch, starting with a derailment of ethanol (nothing at all to do with oil or gas), they then parry and say derailments of oil in Pennsylvania are an imminent threat and danger to PA residents. The hue and cry has gone up: Either have the feds regulate shale oil on railroads out of existence, or preferably just stop shipping crude by rail. Who wants all that nasty crude from North Dakota anyway? Funny how the answer is always the same no matter the question: just stop extracting fossil fuels.

Here’s how the latest PublicSource hit piece begins…
Read More “Anti-Drillers Attack Crude-by-Rail Traveling Through PA”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Birthplace of Fracking (NE USA) Once Again Leads O&G Innovation
March 26, 2014March 26, 2014

Fracking as a concept has been around for a long time. Would you believe us if we said the first rudimentary forms of fracking date back to the 1860s–around the time of the American Civil War? That’s when liquids were first used to fracture “shallow, hard rock wells” in places like PA, NY and WV. Somewhere along the way oil and gas drilling drifted to places like Texas and Louisiana and Oklahoma. In the modern era, fracking started to be widely used commercially in 1947. Oil and gas drilling “grew up” in, and innovations came from, drilling in the southwestern part of the U.S.

Shale drilling is a more recent development–the combination of fracking and horizontal drilling. Shale drilling has been around commercially for 15-20 years, and yes, it was first pioneered and developed by George Mitchell in the Barnett Shale of Texas. However, drillers in Texas and other locations are now learning from innovations coming from the Marcellus and Utica Shale. The country and indeed the world now looks to how companies like Cabot Oil & Gas are able to economically drill for gas in a low-price environment. The innovation that started in the northeast “once upon a time” some 150 years ago has finally returned to its birthplace in the northeast, and the northeast is showing the world how to do it better, faster, and safer than ever before…
Read More “Birthplace of Fracking (NE USA) Once Again Leads O&G Innovation”
Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Ben Lupo Admits Guilt in OH Frack Wastewater Dumping, Prison Next?
March 25, 2014March 25, 2014

Last week MDN speculated that Ben Lupo, the business owner of a trucking company who instructed an employee to repeatedly dump frack wastewater down a drain that emptied into the Mahoning River near Youngstown, OH, would change his plea from not guilty to guilty (see Youngstown Wastewater Dumping Case Nears End, Lupo to Plead Guilty?).

Indeed, Lupo did change his plea yesterday in a federal court in Cleveland…
Read More “Ben Lupo Admits Guilt in OH Frack Wastewater Dumping, Prison Next?”
Anti-Drilling/Fossil Fuel | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County

PA Anti-Drilling Activist Asks Court to Lift Cabot Restraining Order
March 25, 2014March 25, 2014

Vera Scroggins, a local and outside NEPA a little-known anti-driller in Susquehanna County with a potty mouth (see this video of her harassing filmmaker Phelim McAleer), had her day in a Montrose, PA court yesterday in which she and her commie-lib ACLU lawyers tried to get a restraining order lifted. Vera, according to Cabot Oil & Gas, repeatedly violated no trespassing requests from the company. She would show up at Cabot drill sites playing tour guide to obtuse politicians from New York City and on occasion even Hollywood celebrities (like Susan Sarandon), pretending the drill sites and compressor plants she showed them are somehow harming the environment. Cabot repeatedly told Vera to please stop entering roadways and drill sites as a safety precaution. She wouldn’t listen, so Cabot was forced to turn to the local Susquehanna County Court for help (see NE PA Anti-Driller Slapped with Trespassing Injunction)…
Read More “PA Anti-Drilling Activist Asks Court to Lift Cabot Restraining Order”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Litigation | Pennsylvania | Regulation

Hilcorp Forced Pooling Hearing Postponed, More Landowners Added
March 24, 2014March 24, 2014

MDN previously told you about Hilcorp’s lawsuit to force some hold-out landowners in Lawrence County, PA to allow drilling under their land–a concept called forced pooling. The PA Dept. of Environmental Protection (DEP) and the PA courts treated it like a hot potato. The courts finally told the DEP that they (the DEP) would need to decide the matter. So the DEP had set aside two days this week to conduct public hearings in New Castle (see Forced Pooling Circus (ie Hearing) Coming to Lawrence County, PA).

However, the circus/hearing scheduled for this week has been postponed. No new date has been announced. The DEP and Hilcorp both wanted the delay offering the explanation that they need more time, “to provide more complete notice to potentially affected people.” Apparently some landowners haven’t yet been served notice that they will be affected–forced–to be part of a Hilcorp drilling unit, and both Hilcorp and the DEP want them to know it before the public hearing commences. Seems like the forced pooling in Lawrence issue keeps getting better and better (not)…
Read More “Hilcorp Forced Pooling Hearing Postponed, More Landowners Added”
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…
Read More “OH Earthquakes May Delay Opening of New Niles Injection Well”
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…
Read More “Companies Flock to Blair County, PA to Serve Marcellus Industry”