Industrywide Issues

Accidents | Chesapeake Energy | Energy Companies | Industrywide Issues | Regulation | Statewide WV | West Virginia

EPA Makes Chesapeake Pay $9.7M for Spilling Dirt in Creeks & Swamps
December 20, 2013December 20, 2013

The federal Environmental Protection Agency (EPA) announced yesterday that they’ve slapped Chesapeake Energy with a $3.2 million fine, and a requirement that Chessy spend another $6.5 million to clean up 27 sites in West Virginia that the EPA says were “damaged by unauthorized discharges of fill material into streams and wetlands.” That is, Chessy got sloppy and dumped some dirt in a few creeks and swamps (the horror!). The EPA used the federal Clean Water Act to extract their multiple pounds of flesh out of Chesapeake. The EPA is all proud of themselves that this is “one of the largest” fines ever levied by the EPA using the CWA.

Here’s the announcement direct from the belly of the rogue beast itself:
Read More “EPA Makes Chesapeake Pay $9.7M for Spilling Dirt in Creeks & Swamps”
Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Ohio | Processing Plants | Statewide OH | Utica Shale

OH Utica Condensate Processing on the Way from MarkWest/EMG
December 20, 2013December 20, 2013

MarkWest Energy Partners and the Energy & Minerals Group (EMG) announced yesterday they have formed a joint venture to build a network of condensate processing facilities in eastern Ohio. The new venture will be called Ohio Condensate Company, LLC and it already has its first customer–Gulfport Energy. According to the announcement the jv is working on signing up more customers. The first project for the jv will be a new condensate stabilization facility with “associated logistics and storage terminal capabilities” to be constructed in Harrison County, OH. That facility is due to be in service by 3Q14.

The details as revealed by MarkWest & EMG yesterday:
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Susquehanna County | WPX Energy

John Hanger Uses Franklin Forks Water Issue to Boost Gov Campaign
December 20, 2013December 20, 2013

Using the case of three families in Franklin Forks, PA who are suing WPX Energy for contaminating their water wells as a political issue, John Hanger, former Secretary of the PA Dept. of Environmental Protection (DEP), says the investigation done by the DEP wasn’t independent enough for his liking and the agency should re-do it. The three families claim WPX caused methane to migrate into their water wells. The reason the story has been in the news is because WPX had tried (and finally gave up) to remove fresh water tanks from the residents after the DEP determined WPX’s drilling was not at fault (see WPX Decides to Let Franklin Forks Families Keep Water Tanks).

Hanger’s protestations give his failing campaign to get the Democrat nomination for governor some badly needed media attention since his candidacy is rapidly sinking. He’s looking for any wedge issue he can find. The WPX story, visible as it is right now, is tailor made. Here’s John’s trumped up reasons for why the investigation should be redone…
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Industrywide Issues | Pipelines | Regulation

Is Federal Regulation of Local Gathering Pipelines on the Way?
December 20, 2013December 20, 2013

The permitting and regulating of pipelines in this country–in particular natural gas pipelines–is complex. Depending on the type of pipeline, different federal and state (and even local) government agencies a) permit it, and then perhaps confusingly, b) a different agency ensures it meets safe operating standards. That is, the people who permit it usually don’t inspect it. The biggest gap in the regulation picture is that of local gathering pipelines running from the wellhead to a larger regional pipeline or compressor plant. Ohio recognized this problem and recently put the Public Utilities Commission of Ohio (PUCO) in charge of inspecting gathering lines (see PUCO Now Regulates Gathering Pipelines in Ohio and Cheat Sheet: Which Agencies Regulate OH Drilling/Pipelines).

Ohio has addressed the “lack of oversight of gathering lines” issue. However, Pennsylvania has not. Gathering lines in the Keystone state are still not regulated or inspected by any government agency, and that gives some people pause–and it gives some a reason to involve the federal government. A DC-based reporter writing for the Chicago-based In These Times publication has written a good article addressing the pipeline issue in general, and PA’s gathering lines in particular. He indicates the federal Pipeline and Hazardous Materials Safety Agency (PHMSA) is sniffing around the regulation of gathering lines, which is worrisome to those of us who believe it’s better regulated at the state level…
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Anti-Drilling/Fossil Fuel | Broome County | Cortland County | Energy Services | Industrywide Issues | Millennium Pipeline | New York | Onondaga County | Pipelines

Millennium Scraps Cortland-to-Syracuse Pipeline, Binghamton Next?
December 19, 2013December 19, 2013

In May MDN told you about plans by the Millennium Pipeline to expand “south to north,” to haul Marcellus Shale gas from Cortland to Syracuse, NY, launching a non-binding “open season” to gauge interest (see The Irony: Millennium Pipeline Expanding in NY for More Shale Gas). The Cortland-to-Syracuse pipeline was part of a larger plan, to go from Binghamton-to-Syracuse. The Millennium’s plan is/was to build a pipeline from Binghamton to Cortland first, and then from Cortland on to Syracuse. The open season in May was to see if there would be enough interest for the Cortland to Syracuse leg. Apparently, there was not.

An article in the Syracuse Post-Standard yesterday says the Millennium has scrapped their plan to build the Cortland-to-Syracuse pipeline. And, even more surprisingly, the Binghamton-to-Cortland pipeline (where the Millennium would connect to the Dominion Transmission pipeline) is now ominously “under review.” Which sure looks to us like the entire project may be scrapped. Question: Did the ever-present opposition from anti-drilling nutters sink the Millennium project?…
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Electrical Generation | Exporting | Hydraulic Fracturing | Industrywide Issues | Meetings | NG Vehicles | Pipelines | Processing Plants

Energy Industry Leaders Gather at Platts Forum in NYC
December 19, 2013December 19, 2013

One week ago, MDN editor Jim Willis attended the Platts Global Energy Outlook Forum in New York City. The Forum, an annual event that attracts the titans of the worldwide energy industry, was held at the swanky Waldorf Astoria Hotel. Although Jim has been traveling to NYC for years and prides himself on his ability to navigate Manhattan on the subway, every now and again he botches it–like this time. So he ended up walking an extra 6-7 city blocks after getting off at the wrong stop (doh!). But that’s OK. It was a brisk day and the walk did him good.

Rather than get on the ungodly 3:10 am bus from Binghamton to NYC, Jim elected to ride the 6:10 am bus, which was late arriving at the Port Authority due to traffic at the Lincoln Tunnel. So he missed the first session and joined the second session shortly after it had begun. But wow, what a session it was! Below Jim shares his notes from the session “Switching, Ditching and Bridging Fuels,” his notes and impressions from the lunch keynote address by DOE Sec. Ernest Moniz, and his notes from the afternoon session titled, “Midstream Gathers Momentum”. Jim got to hear some of the biggest names in energy. It was all a bit heady for a “small time” natural gas blogger with an attitude…
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Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH House Republicans Take Up “Kill Utica Drilling” Tax
December 19, 2013December 19, 2013

Here we go. The Ohio House has taken up and is now considering raising the severance tax on Utica Shale drilling much higher than it has been–which threatens to stall drilling in the state. Some RINO Republicans have signed on to the bill, following the lead of flaky Gov. John Kasich (also a Republican, increasingly looking like a RINO himself).

Here’s the latest on the “kill Utica drilling” tax:
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Energy Services | Ethane | Industrywide Issues | NGLs | NOVA Chemicals | Processing Plants

NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia
December 19, 2013December 19, 2013

If the ethane produced in the Utica and Marcellus region doesn’t get processed in our region by way of an ethane cracker plant–and it won’t for at least another five years, even if a plant is green lighted today–it has to go somewhere else to be processed. That somewhere else is either the Gulf Coast or Canada, where large cracker plants are located. One of those crackers is operated by NOVA Chemicals in Sarnia, Ontario, Canada. Yesterday NOVA issued a press release that talks about their plans to expand the Corunna cracker to handle an additional 20% capacity coming from the Utica/Marcellus, which is good news for producers in the northeast.

NOVA is also planning to expand the manufacturing facilities that accept the output of the Corunna cracker, including a plant that manufactures polyethylene. Here’s the NOVA announcement from yesterday about what’s coming in the next few years in Sarnia…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | New York | Statewide NY

NYC Comptroller-Elect Scott Stringer: Anti-Fracking “Bully”
December 19, 2013December 19, 2013

New York City’s anti-drilling comptroller-elect, Scott Stringer, will take office in January. Even before he ascends to his throne, Stringer is filing a friend of the court (or “amicus”) brief on behalf of the Town of Dryden. Dryden, you may recall, illegally voted to ban fracking and has been challenged all the way to the state’s top court. In filing the amicus brief, Stringer said he wants to use the law as a “bully pulpit”. More like he just wants to bully other people by (ab)using the law.

The really troubling aspect of Stringer’s character is his blatant disregard and mafia-like attitude that he’ll do what he wants to do and no one will stop him. Case in point: Stringer has not “ruled out” (meaning he’s planning to use) the $140 billion pension fund he’ll control when he assumes office to bully corporate boards over issues like fracking. Really nice guy that Scott Stringer…
Read More “NYC Comptroller-Elect Scott Stringer: Anti-Fracking “Bully””
Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Pipelines | Trumbull County

Niles, OH Does Complete Turnaround, Leases Land for Pipeline
December 19, 2013December 19, 2013

What a complete turnaround–dare we say a “revelation”–in Niles, OH. In August, the Niles City Council voted to ban drilling. The measure they passed also prohibited the city from doing business with the drilling industry, which is a problem because the city does a lot of business with the industry (see Niles, OH Considers Vote to Rescind Ill-Advised Frack Ban). So a month after they passed the measure, City Council voted to rescind it (see Niles, OH Votes to Lift Frack Ban One Month After Passing It).

In a complete turnaround from their anti-drilling ways of just a few months ago, City Council voted yesterday, unanimously, to let Halcon Resources lay a new pipeline under a portion of city-owned land…
Read More “Niles, OH Does Complete Turnaround, Leases Land for Pipeline”
Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Supply Chain | Susquehanna County

Scranton TV Station: NEPA Community Benefits from Cabot (Video)
December 19, 2013December 19, 2013

An interesting TV segment was recently filmed about the role of Cabot Oil & Gas in providing local jobs and a boost to the local economy where they drill in rural Susquehanna County, PA. The video, filmed by Scranton TV station WNEP Channel 16, highlights the partnership Cabot has developed with several vendors (supply chain) and points out Cabot’s long-term commitment to the community–a commitment that will go on for decades to come.

If you want “the other side of the story,” the side that shows what a good corporate citizen looks like and how gas drilling enormously benefits an entire community, take the time to watch this enlightening 6-minute video:
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs
December 18, 2013December 18, 2013

Newly appointed Norse Energy lawyer Tom West (from Albany) is a man of his word. He says what he means and means what he says. Exactly two weeks ago West had a “demand” letter hand-delivered to NY Dept. of Environmental Conservation (DEC) Commissioner Joe Martens. The letter, “demanding” to have a release date for the now 5 1/2 year-old draft fracking regulations, was also delivered to State Health Commissioner Nirav Shah and to Gov. Andrew Cuomo himself (see Tom West Demands DEC Com. Martens Release the SGEIS – Soon). The unstated threat was that if there is no response, West fully intends to file an Article 78 lawsuit against all three to force the release. Article 78 is a provision that makes recalcitrant (and ineffective) government officials do their job.

Yesterday afternoon West made good on the threat and filed the lawsuit (see a full copy embedded below). Among the justifications for requesting the court to force the release of the fracking regulations (called the SGEIS), is this “hit it out of the park” statement:
Read More “Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs”
Hydraulic Fracturing | Industrywide Issues | New York | Research | Statewide NY

USGS Study Finds 15% of NY Water Wells Already Have High Methane
December 18, 2013December 18, 2013

Well, imagine that. Even more scientific evidence has just arrived, courtesy the US Geological Survey (USGS), that there’s a whole lotta methane in the ground in the Southern Tier of New York State. So much methane that 15% of the water wells tested across nearly 2,000 square miles for more than a year by the USGS show methane levels so high that the methane needs to be monitored and/or mitigated. That is, miles away from any fracking or existing gas wells, water wells are saturated with naturally occurring methane. In case you miss the point: Fracking is NOT the cause of methane migrating to water wells in northeast PA and in New York. There is no shale fracking in NY! And yet, there’s methane–so much you can, oh, light your tap on fire?

What say you now anti-frackers? Yeah, we thought so. There’s NOTHING you can say. Your lies are exposed. Here’s the press release and a full copy of the study released yesterday by the USGS with data from their tests of water wells in NY state:
Read More “USGS Study Finds 15% of NY Water Wells Already Have High Methane”
Energy Companies | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Seneca Resources | Tennessee Gas Pipeline

TGP Signs up Seneca Resources for Niagara Expansion to Canada
December 18, 2013December 18, 2013

MDN already brought you the announcement that Kinder Morgan, owner of the Tennessee Gas Pipeline, successfully closed an open season that will allow the the TGP to expand their service to the Gulf Coast. A second announcement from KM yesterday says they’re also expanding service northward, to eastern Canada. KM said they’ve signed up Seneca Resources (drilling subsidiary of Buffalo-based National Fuel) to ship 158,000 dekatherms of natural gas per day to eastern Canadian markets on what KM calls their Niagara Expansion Project.

Seneca and their Marcellus Shale production will be the “foundation shipper” for the $74 million Niagara Expansion. Here’s the second KM announcement from yesterday:
Read More “TGP Signs up Seneca Resources for Niagara Expansion to Canada”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

TGP Pipeline Hits Open Season Target, $150M Expansion Coming
December 18, 2013December 18, 2013

Kinder Morgan, owner of the Tennessee Gas Pipeline (TGP), recently ran an open season to sell more capacity along the TGP to deliver Marcellus and Utica Shale gas to points along the Gulf Coast. They were looking to sell an extra 500,000 dekatherms per day. Yesterday KM announced they hit pay dirt and had achieved their goal. KM says they’ll now spend $150 million to extend and expand the TGP to meet the new demand.

Yesterday’s KM TGP announcement:
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Energy Companies | Ethane | Industrywide Issues | Pipelines | Range Resources Corp

Range Resources Inducted into the Marcellus “1 Bcf/d Club”
December 17, 2013December 17, 2013

Range Resources issued an update today on recent activities and recent milestones achieved. They’ve just achieved a huge one. Range is now the third driller to achieve 1 billion cubic feet per day of production in the Marcellus Shale, joining Cabot Oil & Gas and EQT in that distinguished and exclusive “club” (see EQT 2Q13: Welcome to the Marcellus “1 Bcf/d Club”). Range also, ahead of an official announcement from Enterprise Products Partners, says that the ATEX (Appalachia-to-Texas Express) pipeline to the Gulf Coast is now up and running and they’re using it to ship up to 10,000 barrels of ethane per day. MDN knew the pipeline was in the testing phase but we did not know it’s now fully operational (see Let it Flow! ATEX Ethane Pipeline Testing Now, Online Soon).

The full update from Range:
Read More “Range Resources Inducted into the Marcellus “1 Bcf/d Club””