Industrywide Issues

Energy Services | Industrywide Issues | Ion GX Technology | Pennsylvania | Seismic Testing | Westmoreland County

Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?
December 9, 2013December 9, 2013

It’s certainly not a lot of money, but landowners in the Murrysville (Westmoreland County), PA area may have the opportunity to pick up some pocket change. One method used in seismic testing–finding out what’s down there–is to use “thumper trucks” that pound the ground, sending sound waves into the earth that are recorded with special equipment which allows geologists to draw maps of underground rock structures.

ION Geophysical Corporation of Houston, TX is sending thumper trucks to the Murrysville area in February, and landowners who are selected and agree to allow the trucks access on their land can get a one-time payment of $5 per acre. Depending on how much land you own, it will at least buy a few cups of coffee at Starbucks…
Read More “Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?”
Anti-Drilling/Fossil Fuel | Erie County (NY) | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Wastewater

Erie County (Buffalo) NY to Vote on “Near-Ban” of Fracking
December 9, 2013December 9, 2013

The odious Food & Water Watch (FWW), a partisan anti-drilling organization headquartered in Washington, D.C., is behind a scare effort to get the Erie County (Buffalo), NY legislature to ban fracking on county-owned land, ban the treatment of frack wastewater, and ban the use of processed brine (sometimes erroneously called frack wastewater) as a deicer and dust suppressant throughout the county. Using processed brine–water from drilled gas wells with heavy minerals and anything harmful removed–as a deicer and dust suppressant has been happening safely across the country for years. Hey, if Erie residents want to double the price they pay for road salt (and they use a LOT of road salt for Buffalo winters), who are we to stop them?

The full Erie County legislature will vote on the ill-advised proposed ban this week at its December 12th meeting:
Read More “Erie County (Buffalo) NY to Vote on “Near-Ban” of Fracking”
Industrywide Issues | Jobs | Statewide WV | West Virginia

One of WV Gov. Tomblin’s Biggest Fears: Untrained Workers
December 9, 2013December 9, 2013

Gov. Earl Ray Tomblin went to Europe to find him an ethane cracker plant, and by golly he did (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Tomblin knows that an ethane cracker plant is an economic bonanza like none seen in the northeastern U.S. in generations–maybe centuries. Yes, it’s that big a deal–and he knows it. Kudos to Gov. Tomblin for persevering and finding a cracker plant for WV.

Now that it looks as if a cracker will come to WV, something else is keeping Gov. Tomblin up at night. Last week at a breakfast meeting Tombin said that one of his biggest fears is not having a trained workforce in WV to build and operate the cracker. So Gov. Tomblin is now on a new mission: get WV residents trained and ready…
Read More “One of WV Gov. Tomblin’s Biggest Fears: Untrained Workers”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation | Wastewater

Enviro America Sends 29K Form Letters Opposing Barged Frack Water
December 9, 2013December 9, 2013

Lookie here. A couple thousand members of Environment America (or maybe it’s just a couple hundred since they hide their enrollment numbers) have mass produced 29,000 form letters opposing the U.S. Coast Guard’s plan to allow safe shipping of frack wastewater on American rivers (see Coast Guard Green Lights Barge Transport of Frack Wastewater). Never hear of Environment America (EA)? Not many have. The organization was spawned from the “PIRG” (Public Interest Research Groups) in 2007. What you need to know is that EA is strongly anti-drilling.

We’re sure the Coast Guard appreciates the considerateness of EA in providing form letters so once they’ve read one of the letters, they’re read all of them. Saves time that way–very thoughtful of EA–although a lot of trees were slaughtered (very un-green!) to produce all that paper. So really, the headline should say that EA has sent one letter from their members, not 29,000, because that about sums up this non-story. Here’s the press announcement from EA, laced with toxic terminology and filled with bogus claims:
Read More “Enviro America Sends 29K Form Letters Opposing Barged Frack Water”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Odds in Favor of a PA Ethane Cracker Just Went WAY Up
December 6, 2013December 6, 2013

At the end of October, MDN told you about comments from Shell’s retiring CEO Peter Voser that stoked fears that the previously announced Pennsylvania ethane cracker plant they may build was in doubt (see Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?). Voser said that Shell’s wishlist included three major projects: the ethane cracker in PA, a gas-to-liquids plant in Louisiana, and an LNG plant in Canada. At the time Voser said Shell cannot build all three projects and would need to make “hard choices.”

It looks like the choice has been made and it’s very good news for PA! Yesterday Shell announced they are nixing the gas-to-liquids project in Louisiana, which (MDN’s view) makes it much more likely the PA ethane cracker plant will go forward. Here’s Shell’s statement from yesterday:
Read More “Odds in Favor of a PA Ethane Cracker Just Went WAY Up”
Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines

Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon
December 6, 2013December 6, 2013

When it comes to carting away lucrative ethane from the Marcellus/Utica, there’s been a horse race between Sunoco Logsitics and their Mariner West pipeline to Sarnia, Canada, and the Enterprise Products Partners and their ATEX (Appalachia-to-Texas Express) pipeline to the Gulf. Mariner West recently won the race in a photo finish (see “Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?). However, Enterprise announced yesterday they are now filling the ATEX pipeline with ethane and testing it. The pipeline should be fully operational by the end of December–months ahead of schedule.

The exciting thing about the ATEX pipeline is it’s connection to four different fractionation (“separating”) plants: two in OH, one each in PA and WV. Why are these two ethane pipelines a big deal? Great question…
Read More “Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

IOGA of NY Dumps PR Consultant, Media Speculation Goes Wild
December 6, 2013December 6, 2013

This is an “inside baseball” kind of story–or in this case, inside New York oil & gas politics. The Independent Oil & Gas Association of New York (IOGA of NY) recently underwent some belt-tightening. You look over your budget–the money coming in and the money going out–and you make decisions. That’s what companies, and organizations, do. The government doesn’t do that because they just take it from we citizens to pay for their voracious drunken spending habits. But that’s another story for another time.

IOGA of NY looked at declining membership revenues because oil and gas drillers are leaving or staying away from New York over an ongoing five and a half year moratorium, and IOGA decided they could do without the services of their high priced PR consultant. Happens every day in thousands of companies and organizations across the world. But only in NY do the media try to fabricate a story out of it to say IOGA of NY is throwing in the towel…giving up…admitting defeat. We say it’s wishful thinking on the part of NY’s anti-fracking media. IOGA of NY is doing nothing of the sort…
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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Pathetic Response to Threatened Lawsuit over NY Frack Regs
December 6, 2013December 6, 2013

On Monday, Tom West, an attorney for Norse Energy, sent a “demand” letter addressed to NY Dept. of Environmental Conservation (DEC) Commissioner Joe Martens with the not-so-subtle threat that unless Martens releases the fracking regulations (called the SGEIS), Norse will sue Martens, and Gov. Andrew Cuomo, and State Health Commissioner Nirav Shah under Article 78 for not doing their jobs. That is, Norse (via West) will sue to force the release of the SGEIS (see Tom West Demands DEC Com. Martens Release the SGEIS – Soon). All three of the anti-fracking cabal (Cuomo, Martens, Shah) got the letter.

So far Cuomo himself hasn’t had the guts to say anything about the letter or potential lawsuit. Neither has Joe Martens. Instead, they continue to let State Health Commissioner Shah catch the spears for it. At a public health forum in Manhattan on Tuesday, Shah addressed the issue by saying, in essence, Shazam! We done just got us some new informations in just the past few weeks (can ya’ll believe that?)! Ya’ll can’t rush this, ya know. To which we say, “pathetic”…
Read More “Pathetic Response to Threatened Lawsuit over NY Frack Regs”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Regulation | Williams

Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court
December 6, 2013December 6, 2013

A small but dedicated group of anti-drillers in Kentucky continue to oppose plans by Williams and Boardwalk Partners to build the Bluegrass natural gas liquids (NGL) pipeline through their state. The Bluegrass will stretch from the Marcellus/Utica all the way to the Gulf Coast. MDN estimates it will cost at least $1.5 billion to build it (see 2013 Marcellus and Utica Shale Databook – Volume 2). We told you about previous efforts to stop the pipeline in, ironically, the Bluegrass state–Kentucky (see Bluegrass NGL Pipeline Encounters Resistance from Some in KY and Bluegrass NGL Pipeline Hits Brick Wall in the Bluegrass State). We even told you about God getting involved (see Thank God the Bluegrass Pipeline will Bypass Marion County Nuns).

Looks like the anti-drillers have not given up. A new group with the cutsie name KURE (Kentuckians United to Restrain Eminent Domain) has formed to oppose the pipeline. Their strategy is to deny the Bluegrass the right to use eminent domain to lay pipeline under property where landowners don’t want it. KURE filed a lawsuit yesterday in Franklin Circuit Court (Frankfort, KY) questioning the legality of eminent domain for the Bluegrass…
Read More “Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court”
Commodity Price | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

NYC’s Energy Infrastructure “Transformed,” Boston’s is Not – Why?
December 6, 2013December 6, 2013

We find it amusing that mainstream media is so narcissistic and navel-gazing that if a story doesn’t originate from NYC/DC media axis, it’s as if the story never existed. Case in point: The Atlantic magazine trumpets “no one noticed” that last month a whole lot more natural gas started flowing to New York City because of a new $1.2 billion pipeline from Spectra Energy connecting NJ to NY. Uh, excuse us Atlantic, but MDN noticed. We’ve been covering this story for the past two years! We told readers back on Oct. 21 that Spectra was opening the valves on an additional 800 million cubic feet of mostly cheap Marcellus Shale gas per day (see Spectra NJ-NY Marcellus Gas Pipeline Goes Online Nov. 1).

It may take a few months, but we’re glad to see some mainstream media outlets finally, grudgingly, report the good news. However, there are other stories the media continues to ignore, like why Boston will continue to pay high prices for their natural gas even though there’s plenty of cheap gas to be had. There’s a pretty simple explanation…
Read More “NYC’s Energy Infrastructure “Transformed,” Boston’s is Not – Why?”
Energy Services | Industrywide Issues | Marathon Petroleum | Ohio | Pipelines | Statewide OH | Utica Shale

Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline
December 5, 2013December 5, 2013

Another new pipeline is on the way in the Utica Shale. This one will be built by Marathon Petroleum Corporation, the largest refiner in the Utica Shale region. The Cornerstone pipeline, as they’re calling it, will stretch nearly 50 miles from the MarkWest cryogenic processing plant in Cadiz, OH northwest connecting to M3’s fractionator plant in Scio and M3’s cryogenic processing plant in Leesville along the way as it terminates and connects to Marathon’s refinery in Canton, OH (see map below). The pipeline will carry, at various times, crude oil, condensate and natural gasoline.

The Cornerstone pipeline is slated to be built and in operation in 2016, according to Marathon officials. Here’s what Garry Peiffer, President of Marathon’s Master Limited Partnership MPLX GP said about the Cornerstone project on an analyst call yesterday:
Read More “Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline”
Energy Services | Industrywide Issues | NGLs | Pipelines | Sunoco Logistics

Into the Light: Open Season Announced Mariner East 2 NGL Pipeline
December 5, 2013

A few weeks ago MDN observed that Sunoco Logistics’ is planning a second Mariner East NGL pipeline to run alongside the pipeline they’re working to complete now that runs from western PA all the way to the Marcus Hook refinery near Philadelphia (see Sunoco Logistics Planning Second Mariner East Pipeline for NGLs). We wouldn’t say Sunoco’s plans for a second pipeline have been shrouded in secrecy or conspiratorial, but we would say they haven’t exactly been forthcoming about their plans either–until now.

Yesterday Sunoco announced a binding open season to allow producers to sign up for capacity on the Mariner East 2 pipeline (official name). The open season began yesterday but we find no mention of when it will end, so perhaps it’s open-ended for now. (Usually open seasons last for a month or so.) The plan is to have this new pipeline operational in early 2016. Here’s the press release from Sunoco Logistics announcing the open season for Mariner East 2 (with map):
Read More “Into the Light: Open Season Announced Mariner East 2 NGL Pipeline”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Must-See Video Sticks It to Hollywood Anti-Frackers
December 5, 2013December 5, 2013

Throwing their own words right back in their smug faces, a new video released on Tuesday by the Western Energy Alliance uses real people to tell the truth about fracking, and tells off the know-nothing Hollwood stars that appear in a recent anti-fracking video.

A Washington Times story about the new video appears directly below, followed by the video itself. Please take time to give it a watch–it’s under one minute long and will put a smile on your face like it did ours…
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Industrywide Issues | Ohio | Statewide OH | Taxation

OOGA Caves, Endorses New Higher Tax on OH Utica Shale
December 5, 2013December 5, 2013

It looks like taxes on the Utica Shale in Ohio will go up. Yesterday OH Rep. Matt Huffman and Speaker William Batchelder (both Republicans) introduced House Bill 375 which would raise taxes on Utica Shale drilling. Efforts have been under way for the past two years by OH Gov. John “foreigner-hunter” Kasich. He’s into socialism these days–raise taxes on one set of people and give it to another. He’s had some assistance from his fellow Republicans in this regard–but the efforts have (thankfully) gone nowhere.

But now it’s different. This time the Ohio Oil & Gas Association (OOGA), long opposed to raising the Utica Shale tax, has endorsed the latest proposal, which means it’s probably not as much as Kasich wanted, but it’s certainly more that what it is now. Sadly, OOGA has also (for political expediency) endorsed the concept of giving “the extra money” raised by new taxes to voters (i.e. vote buying) in the form of a state income tax cut…
Read More “OOGA Caves, Endorses New Higher Tax on OH Utica Shale”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming
December 5, 2013December 5, 2013

We already had a high opinion of Acting Secretary of PA’s Dept. of Environmental Protection (DEP), Chris Abruzzo. But our already high opinion just went higher. Abruzzo has been “acting” secretary since the spring. He finally had his hearing yesterday before the PA Senate where senators got to grill him on various issues before they vote to confirm him as the real-deal secretary. At the hearing Abruzzo was asked about the global warming mythology and whether or not he believes in ~~Santa Claus~~ global warming.

Abruzzo had the unmitigated gall to speak the truth (always a dangerous thing to speak truth to politicians). He said he thinks global warming is happening a teeny bit, but it’s not adversely affecting humans or animals or plants. It’s minor. Not a big deal. And it’s certainly not something PA can or should address with heavy-handed government policies. Well! You would think he had grown two heads right there before their very eyes! Some of the warmers were ready to roll out the old elevated platform they used to hang people from who were thought to be witches! Three cheers for Abruzzo, who has brass…er, Christmas ornaments…for not sugarcoating his views. Here’s how his grilling was reported by the reliably anti-drilling StateImpact Pennsylvania:
Read More “PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming”
Harrison County | Industrywide Issues | Pipelines | Supply Chain | West Virginia

Supply Chain: WV Company Specializes in Hard-to-Lay Pipelines
December 5, 2013December 5, 2013

Looking to get a piece of the Marcellus/Utica Shale business for your company (i.e. plug in to the supply chain)? Think niches. An interesting story about a West Virginia construction company that specializes in digging and laying pipelines for the oil and gas industry. But they don’t specialize in the easy stuff–they specialize in the hard stuff…laying pipeline over hills and mountains.

The company, Ronald Lane Inc., has to hang their backhoes from two to four steel cables, dangling on the side of mountains! And they have all the work they can handle because of the Marcellus…
Read More “Supply Chain: WV Company Specializes in Hard-to-Lay Pipelines”