Industrywide Issues

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    DEP Sec. Abruzzo Praised for Quick Response to Chevron Well Fire

    Pennsylvania Secretary of the Dept. of Environmental Protection, Chris Abruzzo, is getting high marks for the DEP’s handling of the recent Chevron well fire in Greene County, PA–by both Republicans and Democrats. You may recall that former DEP Sec. John Hanger, running for the Democrat nomination for governor, called Abruzzo’s appointment by Gov. Corbett “bizarre and irresponsible” (see Former PA DEP Sec. Hanger Blasts Interim Replacement for Krancer). MDN editor Jim Willis had the pleasure of interviewing Sec. Abruzzo last September at the Shale Insight conference (see Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo). Our impression then, as now, was that he is a sharp guy and a good leader. Although it took a sad tragedy, we were proven right–and Hanger was proven wrong. Hey, don’t forget to “pass a joint for John” to help him with his failing campaign for governor, k?

    Meanwhile, here’s the story of politicians from both parties heaping praise on Abruzzo for a job well done:
    Read More “DEP Sec. Abruzzo Praised for Quick Response to Chevron Well Fire”

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    EPA Issues Final “Guidance” Defining Diesel Fuel re Frack Fluid

    Ten days ago the federal Environmental Protection Agency (EPA) released a “guidance” to define what is and is not diesel fuel for the purposes of deciding (on a case by case basis) whether or not a driller can use that substance in their fracking fluid. In 2005 Congress passed a law that says diesel fuel can only be used as a component in fracking fluid if specifically approved, on a case by case basis. Very few (if any) drillers use diesel fuel in their fracking fluid. These days, the race is on to see how green fracking fluid can be made (see Fracking Fluids/Technology Getting Greener Each Year). However, the EPA feels duty-bound (we’d call it zealous) to ensure everyone knows exactly what is, and is not, diesel fuel for the purposes of complying with the law. The guidance just released establishes those boundaries.

    Below is the EPA announcement making what was previously a draft guidance a final guidance, along with a copy of the guidance itself…
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    EPA OIG Begins Project to “Evaluate” Water Threats from Fracking

    MDN has warned you for years that the federal Environmental Protection Agency (EPA) has an earnest desire to take over (illegally, in our opinion) the role of regulating oil and gas drilling in this country. Regulation of oil and gas falls, Constitutionally, to the individual states–not the federal government. So meddling bureaucrats, like the EPA’s Office of Inspector General (OIG), have to use creative excuses to begin the process of a federal takeover–and they only have a few years left in Obama’s term to do it (we hope). What better excuse to use than fracking may, might, theoretically could, possibly, concerningly, disturbingly, maybe…threaten water supplies. And so of course the OIG needs to hurry up and take a look at that–before time runs out! It’s what comes after “taking a look” that concerns us.

    Below is a memo from the Acting Administrator for Water saying she’s about to convene a project that will “determine and evaluate what regulatory authority is available to the EPA and states, identify potential threats to water resources from hydraulic fracturing, and evaluate the EPA’s and states’ responses to them.” Translation: We’re comin’ for ya states–and we’re really comin’ for you drillers. Hey OIG–your bosses in the EPA are already in the midst of a multi-year “study” of fracking with a final report due soon (see Big News: EPA Fracking Study Delayed 2 Years – Now Due 2016). Why do you need to meddle too? Here’s the OIG’s opening salvo in the fracking wars:
    Read More “EPA OIG Begins Project to “Evaluate” Water Threats from Fracking”

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    Beaver County, PA – In the Marcellus/Utica Catbird Seat

    In many ways, Beaver County, PA is in the catbird seat with respect to the Marcellus and Utica Shale. The county has seen some Marcellus drilling with 17 unique well permits were issued for Beaver for the last four months of 2013 according to the latest volume of the Marcellus and Utica Shale Databook. However, it is Beaver’s geography for reasons other than drilling that gives it its advantage: the Ohio River flows through Beaver; two interstate highways pass through; lots of railroads; and of course, close to the Pittsburgh International Airport.

    Beaver is also the chosen location for Shell and their $2-$3 billion ethane cracker plant. It’s been a roller coaster of will they or won’t they build it? Lately, it certainly seems like Shell is favoring a green light for the project–but only when they finally buy the property on which a now closed zinc plant sits will everyone breath a sigh of relief that the project is a done deal. (See Shell to Begin Demolition at PA Ethane Cracker Site Early 2014 for the latest.) Even if Shell doesn’t build the cracker plant, Beaver County officials say there’s still a lot happening in the county and the future looks bright, because of the Marcellus…
    Read More “Beaver County, PA – In the Marcellus/Utica Catbird Seat”

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    NGPL Launches Open Season to Expand, Carry NE Gas South

    Two days ago Natural Gas Pipeline Company of America LLC (NGPL), a division of America’s largest midstream company Kinder Morgan, announced a 14-day non-binding open season to gauge interest in the potential expansion of its Gulf Coast mainline system. The expansion would increase NGPL’s flow capability up to 750,000 dekatherms per day of incremental volume from the Rockies Express Pipeline (REX) interconnection at Moultrie, IL. I would reverse the flow at several compressor stations, sending Marcellus and Utica Shale gas south on its pipeline system to Texas and Louisiana.

    Here’s Kinder Morgan’s announcement of the NGPL open season, which runs through March 4th:
    Read More “NGPL Launches Open Season to Expand, Carry NE Gas South”

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    Remains of Chevron Contractor Found at Greene County Well Site

    light a candleUnfortunately our worst fears were realized when PA State Police announced yesterday they had removed “what appear to be” the remains of Ian McKee, 27, a Cameron International contractor working at the Chevron Marcellus well site in Greene County. A warning folks, this is a bit gruesome. Apparently they found some bones but no body. It is a heart-rending story. No matter who it would have been, it’s a tragedy. In the case of Ian, he was young, living with his fiance with a baby on the way. Please say a prayer for his family and friends–they will need it in the coming days as they deal with this.

    To their credit Chevron released a statement about finding Ian (see below). Oddly, the company Ian worked for that was doing contract work for Chevron–Cameron International–has not posted any public statements on their website… from the beginning. Below Chevron’s statement is a news account of the “somber” news conference held yesterday where Chevron announced finding Ian’s remains…
    Read More “Remains of Chevron Contractor Found at Greene County Well Site”

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    Chevron: Sorry Turning Your Life Upside Down–Here’s a Free Pizza

    In the midst of a public relations emergency (nightmare), snap decisions are made quickly. Frankly, it’s tough to be critical about the decisions made under such pressure. It’s tough to imagine what someone goes through until you “walk in their shoes.” We’re mindful of that and this is not an attempt at “piling on.” But we can’t ignore the story of how Chevron has addressed the current Greene County, PA well fire crisis. A worker from a contracting company–Cameron International–lost his life in the explosion and fire that raged for nearly five days before it burned out. As we’ve noted several times, to their credit, Chevron was open and transparent, posting frequent updates on their website (see Chevron’s Updates here).

    During the crisis emergency equipment, personnel and around-the-clock activity in the area greatly disrupted the lives of those living nearby. Someone at Chevron decided it would be a good idea to show the company’s appreciation to those neighbors whose lives were turned upside down. So Chevron reps went door to door at about 30 nearby homes and handed out…a coupon for a free pizza and 2 liter soda–value $12. Thunk. While we appreciate they wanted to do something, this was decidedly not the best decision that could of been made by Chevron during this entire crisis, as noted by the Washington Observer-Reporter:
    Read More “Chevron: Sorry Turning Your Life Upside Down–Here’s a Free Pizza”

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    WV Forced Pooling Bill Already in Trouble, Passage Doubtful

    Yesterday MDN told you about the new initiative in the West Virginia legislature to revive (yet again) a forced pooling bill (see WV Legislature Makes Another Run at Forced Pooling/Unitization). A few more details on that initiative have (as we suspected) appeared in WV media outlets. Not only was House Bill (or HB) 4558 introduced, but a companion bill Senate Bill (SB) 578 was also introduced. Already one of the senators sponsoring the Senate bill has asked his name to be removed and is backing away from it, saying the measure “will not pass.”

    Even Corky Demarco, executive director of the West Virginia Oil and Natural Gas Association, says he’s “not sure” of the outcome for the legislation. All of which means it sure looks to us like it’s (once again, thankfully) DOA for this session. However, we’ll continue to keep an eye on it. Here’s the latest…
    Read More “WV Forced Pooling Bill Already in Trouble, Passage Doubtful”

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    WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition

    MDN told you in stories both yesterday and today about WV House Bill (HB) 4558 that would allow forced pooling in the state–a bill that seems headed for defeat. However, there is a second House Bill actively under consideration related to the Marcellus/Utica drilling industry in the state. HB 4411 would establish in law that WV municipal landfills can legally accept over the current legal monthly maximum limit of drill cuttings for disposal (full copy of the bill is embedded below). Last year the WV DEP issued a directive that allows landfills to accept drill cuttings over the maximum 10,000 tons, something that some landfills have done since that time (in some cases landfills are accepting up to 40 tons per month). Apparently HB 4411 will codify the DEP directive into law, meaning future administrations can’t arbitrarily decide to rescind the more generous directive in place now.

    A House hearing was held yesterday on HB 4411. Of the 20 speakers who addressed the House panel, 19 of them spoke against the law. The sole supporter was Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia. Here’s more of the story on disposing of drill cuttings (leftover rock and dirt) in municipal landfills…
    Read More “WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition”

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    Another Day, Another “Study” Saying Marcellus Kills Nature

    We sometimes wonder: Do some humans suffer from species guilt? Why do some people seem to believe that the human animal–the crowning achievement of all of God’s (or evolution, depending on your view of origins) animals–is actually an infestation on Mother Earth? There is a direct correlation between man’s development and use of energy, and man’s advancement. We live longer, are healthier, and enjoy more “stuff” than ever–largely because of energy: electricity, oil, natural gas and coal. Everything from your phone to your computer to the clothes you wear and the shoes on your feet, even what you eat–all of it is derived from and delivered by abundant energy sources. And yet, some humans want to turn the clock back–they want less energy. It’s like they have a death wish for the human species, or perhaps they are self-loathing. It’s simply irrational and unfathomable.

    Those are the thoughts we had after reading about the latest release of a “study” that takes a look at how drilling in the biggest and best shale play–the Marcellus–maybe, might, possibly, could, theoretically lead to the destruction of wildlife habitat and freshwater ecosystems. But why stop there? Let’s throw in wind power too! Wind power also screws up wildlife habitats. And so this latest “research” study, titled Shale Gas, Wind and Water: Assessing the Potential Cumulative Impacts of Energy Development on Ecosystem Services within the Marcellus Play (copy embedded below, authored by the anti-drilling Nature Conservancy and published in a “peer-reviewed” journal), seeks not to eliminate Marcellus drilling (because that train has already left the station), but instead encourages Soviet-style central planning by government bureaucrats to minimize the effects of all this willy nilly drilling that’s goin’ on out they’a…
    Read More “Another Day, Another “Study” Saying Marcellus Kills Nature”

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    The Twisted Logic of an Anti-Driller: Blame Natgas for Everything

    If you try to enter the mind of a devoted anti-driller to understand their viewpoint and how they think, you risk going insane. We caution against it.

    Here’s an example of how “logic” works for anti-drillers. There’s a big chemical spill that affects the drinking water for 300,000 West Virginians–caused by the coal mining industry. You no doubt remember the headlines from a month or so ago. Since the coal industry caused the problem, we need new legislation that targets the shale drilling industry. Wait, what??? Yeah, that’s how logic works for an anti-driller…
    Read More “The Twisted Logic of an Anti-Driller: Blame Natgas for Everything”

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    Halliburton Fined $1.8M for Storing/Treating HCl at W PA Facility

    got caught red handedIn one of the biggest (perhaps the biggest) fines levied by the Pennsylvania Dept. of Environmental Protection (DEP), Halliburton has been fined $1.8 million for storing and treating hydrochloric acid (HCl) at a facility in Homer City, PA (about 50 miles from Pittsburgh). The HCl shipped and treated at the Homer City site happened over a 13-year period of time from 1999-2011, meaning most of it came from conventional natural gas well sites, although some it likely came from Marcellus Shale sites too (the conventional/unconventional split is not identified in the DEP paperwork). Marcellus drilling in PA didn’t ramp up until around 2006-2007. The DEP says Halliburton had claimed exemption from the state’s Solid Waste Management Act of 1980 for their Homer City facility, saying they were shipping and storing very small amounts of HCl at the facility when in fact that was not the case. Based on their false claim, Halliburton was given a pass on inspections, paperwork filing, signage, and the requirement to use certified hazardous waste haulers on more than 250 truck trips in and out of the facility–hauling HCl. Halliburton was in the wrong, they now acknowledge it (having been caught), and they’ve been levied a steep fine.

    Both the DEP and Halliburton stress that there “is no evidence that Halliburton’s handling of the hazardous waste caused any actual harm to the public or the environment.” However, Halliburton violated both the spirit and the letter of the law and have now been caught. Shame on them. Below is the announcement from the DEP, a copy of the consent order signed by Halliburton admitting guilt, and an article providing important details about this story not found elsewhere…
    Read More “Halliburton Fined $1.8M for Storing/Treating HCl at W PA Facility”

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    WV Legislature Makes Another Run at Forced Pooling/Unitization

    Breaking news: The West Virginia Legislature is once again taking up the issue of forced pooling–or as they are calling it, “unitization”. The forced pooling bill was introduced once again, as it has been for several years running, just a few days ago. Each year the WV legislature meets for a 60-day session and that’s it. So work has to get done quickly. An alert MDN reader tipped us that later today the House of Delegates Energy Committee will consider H.B. 4558 (full copy of the bill embedded below) at a 3 pm session today. The committee must vote to report the bill out of committee before a vote by the entire House can be taken. Will that happen? Not sure.

    According to the West Virginia Natural Gas Blog (written by law firm Lewis Glasser Casey & Rollins), both of WV’s natural gas associations are in favor of the bill. MDN has not had time to read/review the bill and therefore won’t (at this time) render an opinion. But our long-standing view remains unchanged–we take a dim view of forced pooling period. Unitization–the right to re-sell already-leased land, or to include small bits of land where the owner cannot be tracked down after a good-faith effort–is one thing. Coming in and saying 51% of your neighbors have signed, we’ll take yours too if you don’t–that’s a completely different matter and for us, should not be done. We’re sure there will be more press on today’s hearing, which we’ll bring you when we see it…
    Read More “WV Legislature Makes Another Run at Forced Pooling/Unitization”

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    US Sec of Energy Moniz Gives Cuomo Swift Kick over Fracking Delay

    U.S. Secretary of Energy, Ernest Moniz, gave NY Gov. Andrew “Can’t-Make-a-Decision” Cuomo a metaphorical kick in the rear yesterday by saying Cuomo ought to consider the economic prosperity fracking has brought to Pennsylvania. He also said fracking can and is being done safely–that it’s “manageable.” In other words, wise up Andy.

    Three cheers for Ernie! Here’s what Moniz told Politico’s Capital New York publication:
    Read More “US Sec of Energy Moniz Gives Cuomo Swift Kick over Fracking Delay”

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    2 OH Anti-Drilling Dems Miffed at Being Fingered in ODNR Memo

    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”

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

    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”