Industrywide Issues

Air Quality | Industrywide Issues | Pennsylvania | Research | Statewide PA

CU & NOAA Do Fly Over of Marcellus to Measure Methane Leaks
December 13, 2013December 13, 2013

Is there too much methane leaking from shale drilling operations and electrical generating plants that burn methane in the Marcellus Shale? A plane ride last summer hopes to help answer that question.

Researchers from the University of Colorado Boulder and the National Oceanic and Atmospheric Administration did a fly over of the Marcellus Shale in northeastern PA, along with fly overs in two other major shale plays. They’re still studying the data from they collected. In reading the news story about the study and the fly over, it all appears a bit murky to us. Lots of “estimates” and comparing this study with that study and “top down” and “bottom up” estimates to come up with answers. We like real, hard science. Things you measure–things that are testable and repeatable. Not political science where you spin fanciful theories. Was this fly over and the resulting study the former, or the later? Time will tell…
Read More “CU & NOAA Do Fly Over of Marcellus to Measure Methane Leaks”
Air Quality | Industrywide Issues | Ohio County | Research | West Virginia

WV County Health Dept Investigates Wells for Air Pollution
December 13, 2013December 13, 2013

Is Marcellus Shale drilling in West Virginia causing elevated levels of cancer-causing benzene (and other pollutants) to spread near well sites? That’s the question being investigated by the Wheeling-Ohio County Health Department. They’ve been sampling air around wells in Ohio County and have concerns, particularly about benzene levels. They’ve sent their findings to Michael McCawley, chairman of the Department of Occupational & Environmental Health Sciences in the School of Public Health at West Virginia University. McCawley, you may remember, has been beating the drum for some time that setbacks for drilling in WV are not enough and that air pollution coming from drilling operations is a serious issue (see WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites).

The source of the benzene is not from what’s coming out of the borehole–it’s from heavy equipment running at the drill site and trucks coming and going to the site. Benzene is found in diesel fuel and a lot of equipment at a drill sites runs on diesel…
Read More “WV County Health Dept Investigates Wells for Air Pollution”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Ritchie County | Tyler County | Utica Shale | Washington County (OH) | West Virginia

Magnum Hunter 2014 CapEx: Utica/Marcellus
December 13, 2013December 13, 2013

In our season of 2014 guidance statements, Magnum Hunter Resources has just issued theirs. And what do we find when we open this particular Christmas present? The company will spend $400 million on capital expenditure projects in 2014, and the vast majority of it will go to the Utica and Marcellus Shale. Magnum Hunter plans to lease more acreage in the Marcellus/Utica, increase drilling rigs from two to three, and build out more pipelines in the northeast too. The Ohio Utica is a particular focus for Magnum Hunter in 2014.

Here is their 2014 blueprint, including which counties in OH and WV will see drilling action from Magnum Hunter in 2014:
Read More “Magnum Hunter 2014 CapEx: Utica/Marcellus”
Energy Companies | Exxon Mobil | Industrywide Issues | Research

ExxonMobil Annual Energy Report: NatGas Fastest Growing Fuel
December 13, 2013December 13, 2013

Understanding the global energy picture is helpful so we know where the shale energy piece “fits” in that picture. Each year ExxonMobil prepares an annual energy outlook. Yesterday they released the 2014 ExxonMobil Outlook for Energy: A View to 2040 report (full copy embedded below). Some interesting tidbits from the report: ExxonMobil says global energy demand will be 35% higher in 2040 than it was in 2010. Not surprisingly, they figure 60% of the world’s energy needs for the foreseeable future (until 2040) will be met by oil and natural gas, although renewables continue to grow.

Something else they note of great interest to MDN readers: “Natural gas will continue to be the fastest-growing major fuel source as demand increases by about 65 percent. Natural gas is projected to account for more than one quarter of all global energy needs by 2040 and it is expected to overtake coal as the largest source of electricity.” Here’s ExxonMobil’s press release announcing some of the key findings in this year’s report, followed by a full copy of the report:
Read More “ExxonMobil Annual Energy Report: NatGas Fastest Growing Fuel”
Bradford County | Energy Services | Eureka Resources | Industrywide Issues | Lycoming County | Pennsylvania | Wastewater

2 NE PA Wastewater Recycling Plants Get Upgrades
December 13, 2013March 7, 2019

The Marcellus Shale wastewater recycling plants in Williamsport and Towanda, PA, operated by Eureka Resources, have been upgraded. A crystallizer and a methanol recovery system have been installed at both plants allowing Eureka to separate out minerals and compounds that they have been trucking to Ohio for disposal in an injection well. The side benefit: They’ll now begin producing and selling oil, methanol and sodium chloride–a new revenue stream for the plants.

The two plants will bring the new upgrades online in January…
Read More “2 NE PA Wastewater Recycling Plants Get Upgrades”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Launches Public Comments on New Drilling Rules, Roadshow
December 13, 2013December 13, 2013

The PA Dept. of Environmental Protection (DEP) and their Environmental Quality Board are launching a 60-day public comment period starting Dec. 14 to allow PA residents to comment on proposed new Marcellus Shale drilling rules called for under the Act 13 law passed in early 2012. The new rules will address well pad construction, water impoundments, pipelines and surface impacts of drilling, among other things. It is a major revision to PA’s drilling rules.

In addition to emailing or sending in hard copy, the DEP will conduct a series of road shows in various locations to discuss the proposed new rules. They’re also holding two online webinars (Dec. 19 and Jan. 3). The announcement from the DEP about the proposed new rules and the comment period:
Read More “PA DEP Launches Public Comments on New Drilling Rules, Roadshow”
Industrywide Issues | Jefferson County (PA) | Pennsylvania | Wastewater

Innovative Wastewater Treatment Plant Looks for Investors
December 13, 2013December 13, 2013

Pssst. Hey buddy, have a spare $25 million to invest? Chief chemist and president of ProChemTech International (Brockway, PA), Tim Keister, says he’s figured out how to build a shale drilling wastewater plant that can make $35,000 per day and not charge drillers a dime to treat their wastewater. Keister’s innovative design removes barium and radium and turns them into barium sulfate. From barium sulfate you can make products like rubber, glass and drilling mud. Extract the barium and radium, create barium sulfate, sell it. Easy!

Except it’s not so easy when you’re the first. Investors are risk-averse and Keister has had a hard time finding someone to build the plant–so he’s going to build the first one himself. But there’s still that little problem of needing 25 mil…
Read More “Innovative Wastewater Treatment Plant Looks for Investors”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA RINO Rep. Gene DiGirolamo Proposes Marcellus Tax Hike – Again
December 13, 2013December 13, 2013

Seeking to kill the economic miracle that has been shale gas drilling in Pennsylvania, the so-called “brave” Republican (really a RINO) PA Rep. Gene DiGirolamo is proposing a 4.9% tax on the value of natural gas extracted and sold from state wells. That’s in addition to the impact fee/tax already in place. The new tax would supposedly raise another $640 million of money that politicians like DiGirolamo could get their grubby hands on to parcel out in vote buying schemes (rather than continue to do the hard work begun by Tom Corbett in reigning in spending).

DiGirolamo has been pedaling higher taxes on Marcellus drilling since at least Sept. 2011 (see Marcellus & Utica Shale Story Links: Thursday, Sep 22, 2011). Such a plan doesn’t stand a prayer of a chance while Republicans hold both houses and the governor’s chair. Which raises the question of why DiGirolamo would float this plan again now. Likely a sleazy political ploy to curry favor with his Democrat friends because he figures they’ll be taking over next year after the election…
Read More “PA RINO Rep. Gene DiGirolamo Proposes Marcellus Tax Hike – Again”
Industrywide Issues | Lackawanna County | Luzerne County | Pennsylvania | Taxation

Specifics on Marcellus $ Helping to Clean Chesapeake Bay Pollution
December 13, 2013December 13, 2013

A month ago MDN brought you the good news that money raised as part of the Marcellus Shale impact fee in PA is being used to launch a project that is hoped will clean up the single largest source of pollution for the Chesapeake Bay–the Old Forge borehole near Scranton, PA (see Marcellus Drilling Helps Fix Biggest Polluter of Chesapeake Bay). The initial story outlines the high level plan by Susquehanna Mining Solutions LLC to build a treatment plant that will convert acid mine water coming from the borehole (some 60-100 million gallons per day) into clean water for other uses.

The original article was short on specifics. We now have a few of the specifics for how Susquehanna Mining Solutions will perform this miracle. It’s no small task…
Read More “Specifics on Marcellus $ Helping to Clean Chesapeake Bay Pollution”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Tompkins County

Groton, NY (borders Dryden) Votes DOWN 6-Month Frack Moratorium
December 12, 2013December 11, 2013

Whattya know? Maybe there is hope for the People’s Republic of Tompkins County, NY after all. Tompkins County is home to anti-drilling organizations including the partisan Park Foundation and the many people it funds–like Cornell professors Tony Ingraffea and Robert Howarth, and the wife and husband lawyer team of Helen and David Slottje, who make mischief at local town board meetings, encouraging them to institute illegal bans and moratoriums on fracking.

One of the the towns the Slottjes duped into passing a ban was Dryden, NY–in Tompkins County. The Dryden ban has been appealed all the way to the highest court in New York, the Court of Appeals where the case will be heard in early 2014. We’re sure the taxpayers of Dryden enjoy footing that portion of the legal bill not generously covered by the Park Foundation. Anywho, the town next door to Dryden is Groton. The Groton town board voted down a proposed six-month moratorium on fracking at their Tuesday night meeting. It’s a small victory for democracy and right thinking. Too bad some of Groton’s common sense wouldn’t rub off on their Dryden neighbors…
Read More “Groton, NY (borders Dryden) Votes DOWN 6-Month Frack Moratorium”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

The Secret Back Room Deal to Raise OH’s Utica Shale Tax
December 12, 2013December 11, 2013

Ohio’s top two industry trade groups, the Ohio Oil and Gas Association (OOGA) and the Ohio Petroleum Council (OPC) are not “on the same page” when it comes to the Republican raise-taxes-on-Utica-drilling plan 3.0. MDN recently told you about the latest incarnation of Gov. John Kasich’s desire to “spread the wealth around” in classic socialist fashion (see OH Repubs Offer Excuses Why This Time High Utica Taxes are OK). OOGA was in on the secret dealings to craft the latest tax hike (shame on them). OPC was not and so far they’re staying neutral and not giving their support. Not yet anyway. Let’s hope it stays that way.

The story about OOGA vs OPC in raising Utica Shale taxes:
Read More “The Secret Back Room Deal to Raise OH’s Utica Shale Tax”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

PA Sen. Bob Casey “Pressures” Shell to Commit to PA Cracker Plant
December 12, 2013December 11, 2013

This is rich. MDN has long chronicled the flakiness of U.S. Bob Casey (Democrat, PA) on the shale drilling issue. On one hand he wants the heavy hand of the federal government to regulate drilling, violating the Constitution in doing so. On the other hand, like a typical sleazy politician, he has his hand out and wants the money and jobs shale drilling generates (see The Two Faces of Sen. Robert Casey (D-PA) on Shale Drilling).

The hand-stuck-out-for-money-and-jobs Casey is manifesting again at present. He just fired a letter off to Shell to “pressure them” into making a decision about moving forward with an ethane cracker in PA. Which is kind of funny, that he’s posturing and preening and pretending to goad Shell along when Shell is already well along and likely to move forward with no regard for what Bob Casey wants or thinks (see Odds in Favor of a PA Ethane Cracker Just Went WAY Up). What a waste of a Senate seat. Here’s what the preening Bob Casey said to Shell…
Read More “PA Sen. Bob Casey “Pressures” Shell to Commit to PA Cracker Plant”
Air Quality | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Washington County

MarkWest Chartiers Twp Plant Sued for “Trespassing” on Air Space
December 12, 2013December 11, 2013

Two couples with the same last name and who both live near the MarkWest gas processing plant in Chartiers Township (Washington County), PA are suing MarkWest claiming the plant is causing air pollution and is “trespassing” on their air space. MDN has chronicled problems at the plant in the past (see MarkWest Served Violation Notice for Chartiers Processing Plant).

Both couples, with the last name Sethman, report a variety of physical ailments they claim are caused by air pollution from the plant…
Read More “MarkWest Chartiers Twp Plant Sued for “Trespassing” on Air Space”
Energy Companies | Halcon Resources | Industrywide Issues | Lease & Royalty Payments | Litigation | Mercer County | Pennsylvania

Mercer County Landowners Suing Halcon Get Small Victory
December 12, 2013December 11, 2013

Last fall Halcon Resources signed letters of intent with landowners in Mercer County, PA to lease some 60,000 acres for drilling, via CX Energy (Co-eXprise). In September 2012 Halcon called a meeting with landowners and told them they would only proceed with leasing about half of the acreage (see Halcon Says No Drilling for Half of Mercer County Landowners). Needless to say the half that were jilted didn’t take it well. In fact, they felt defrauded by Halcon and filed a class action lawsuit in federal court against Halcon.

The U.S. Court of Appeals Third Circuit has just passed the case (“remanded” it) back to a Pennsylvania trial court, which is a small victory for the landowners. How so? Well, it’s complicated, but we’ll do our best to explain it…
Read More “Mercer County Landowners Suing Halcon Get Small Victory”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

New Drilling Regulations Coming to OH in Next 30-60 Days
December 11, 2013December 11, 2013

The Ohio Department of Natural Resources (ODNR) will soon release new rules for shale drilling in the state. The new rules will cover well pad construction, wastewater treatment and a number of other aspects of drilling. According to ODNR’s Chief of the Division of Oil and Gas Resources Management, Rick Simmers, the new rules are “good stuff.” The question is, good for who?

Some of the new rules will be released later this month and some in early January. Others will take longer. The route to becoming enforceable “law” (or “regulation” which is the same thing) is somewhat circuitous. The rules will be subject to a 30-day public comment period and will go before a special committee with members from both the OH State Senate and House before final approval and acceptance…
Read More “New Drilling Regulations Coming to OH in Next 30-60 Days”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

After 9 Months, Chris Abruzzo Confirmed as Sec. of PA DEP
December 11, 2013December 11, 2013

In September MDN told you that Chris Abruzzo, the “Acting” Sec. of the PA Dept. of Environmental Protection (DEP) was nominated by Gov. Tom Corbett to fill the post vacated by former Sec. Michael Krancer (see No More “Acting” for Abruzzo – Nominated as Secretary PA DEP). Last week Senate Democrats tried to rake Abruzzo over the global warming coals because Abruzzo doesn’t believe global warming is quite the big deal they do (see PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming).

We’re happy to report that Abruzzo has now been confirmed by the Senate (42-8, with partisan Democrats voting against). Finally, after holding and executing the duties of the office for nine months, E. Christopher Abruzzo is the full Sec. of the PA DEP. We congratulate him!…
Read More “After 9 Months, Chris Abruzzo Confirmed as Sec. of PA DEP”