Industrywide Issues

Energy Services | Ethane | Harrison County | Industrywide Issues | Kinder Morgan | NGLs | Ohio | Pipelines | Statewide OH

UTOPIA is Coming! The UTOPIA Pipeline, that is…
December 17, 2013December 17, 2013

Kinder Morgan announced yesterday a plan to build a new 210-mile natural gas liquids (NGL) pipeline that will connect multiple fractionation facilities in Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada where they will be delivered to NOVA Chemicals. The new $300 million, 10-inch pipeline from OH to MI has been cleverly named Utica To Ontario Pipeline Access (UTOPIA). The NGLs that will flow through the pipeline will already be refined (“fractionated” or separated) and will include ethane and propane.

Here’s Kinder Morgan’s good news announcement that UTOPIA is coming:
Read More “UTOPIA is Coming! The UTOPIA Pipeline, that is…”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Obstinately Says He’ll Continue to Dither on Frack Decision
December 17, 2013December 17, 2013

New York Gov. Andrew Cuomo continues to prevaricate/dither/postpone his decision on whether or not to allow fracking for shale gas in New York State. He said so yesterday at a news conference. By continuing to delay a decision far past everyone’s measure of reasonableness, he’s totally eliminated any chance he had of running for president. He’s also courting a lawsuit that will embarrassingly force him to do his job and make him release the new drilling rules (see Tom West Demands DEC Com. Martens Release the SGEIS – Soon). Today is the deadline by which Norse Energy’s lawyer Tom West has demanded a fixed date when the Cuomo administration will release new drilling regs. If that doesn’t happen (and it almost certainly won’t), a lawsuit to force the issue will be filed–perhaps as early as this month. Cuomo is out of time and out of options–yet he continues to prevaricate.

Meanwhile, Cuomo’s State Health Commissioner, Nirav Shah, continues to be Cuomo’s spear catcher and take all the heat because Shah refuses (at Cuomo’s direction) to announce whether or not he believes proposed drilling rules will protect the nebulous “public health.” Shah has humorously taken to spouting things about science being done in “sacred places.” Apparently sacred places are located everywhere but New York. Here’s how Cuomo’s dithering talk went yesterday…
Read More “Cuomo Obstinately Says He’ll Continue to Dither on Frack Decision”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

A Natural Gas Christmas Carol, Starring Gov. Andy
December 17, 2013December 17, 2013

An early Christmas present for New York landowners and those with an interest in drilling in New York State, provided by our friends at the Joint Landowners Coalition: a “Natural Gas Christmas Carol”. It is funny, and sad–all at the same time. Give it a read! (Hey, it’s better than a lump of coal.)

Here’s the letter and a link to the PDF from the JLCNY…
Read More “A Natural Gas Christmas Carol, Starring Gov. Andy”
Exporting | Industrywide Issues | Research

EIA Early Release of 2014 Report Shows Plenty of Gas for Exports
December 17, 2013December 17, 2013

Yesterday the U.S. Energy Information Administration (EIA)–the one government agency MDN actually likes and believes to be effective–released preliminary data and an abridged version of their Annual Energy Outlook (AEO) for 2014 (full copy of the “early release” version embedded below). The full version will be along in Spring 2014.

So what does the early release version show? U.S. production of crude oil and natural gas will continue to go through the roof–thanks to natural gas. Crude oil production will continue to grow until 2020 or there about, before leveling off. Natural gas? Production increases until at least 2040. In addition, EIA says the increased production in natgas means exports–by both pipeline and LNG carriers–won’t negatively affect domestic prices. That is, EIA report provides justification for further approvals to export American natural gas…
Read More “EIA Early Release of 2014 Report Shows Plenty of Gas for Exports”
Electrical Generation | Energy Services | Greene County (PA) | IMG Midstream | Industrywide Issues | Pennsylvania

New Marcellus Gas-Fired Electric Plant Proposed for Greene County
December 17, 2013December 17, 2013

Another new natural gas-fired electric generating plant may be on the way in PA courtesy of cheap, abundant Marcellus Shale gas. Bayles Energy LLC, a subsidiary of IMG Midstream, has proposed building a 20-megawatt plant in Greene Township in (yes) Greene County, PA. The new plant would generate enough electricity to serve 13,000 homes on the area.

More details…
Read More “New Marcellus Gas-Fired Electric Plant Proposed for Greene County”
Industrywide Issues | Mercer County | Noise | Pennsylvania | Supply Chain

Quieter Drilling, Compressor Plants on the Way in the Northeast
December 17, 2013December 17, 2013

Noise Solutions Inc., headquartered in Alberta, Canada, makes buildings, walls and enclosures that keep the noise down. They like to say they make communities quieter, and they’ve been doing it since 1997. One of the primary markets for Noise Solutions is the oil and gas industry. They recently announced an expansion into the Marcellus and Utica Shale region, setting up a new facility in Sharon (Mercer County), PA. Noise Solutions has already hired 30 employees at the new facility with plans to have 125-200 employees hired in the next three years. This is great news for the Marcellus/Utica drilling industry and for Mercer County.

Noise Solutions’ recent announcement:
Read More “Quieter Drilling, Compressor Plants on the Way in the Northeast”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County | WPX Energy

WPX Decides to Let Franklin Forks Families Keep Water Tanks
December 16, 2013December 16, 2013

WPX Energy has made not only a smart move, but is doing the right thing. MDN told you last week about the three families in Franklin Forks, PA who say nearby Marcellus drilling by WPX Energy caused methane to migrate into their water wells (see WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp). The PA Dept. of Environmental Protection investigated (for years) and found the methane in the families’ wells is naturally occurring and not from WPX’s work. So WPX tried to remove the water tanks (“buffaloes”) they voluntarily provided to the families.

One family let them remove the water buffalo, the other two illegally resisted, so WPX was scheduled to come back today with warrants in hand to remove them. But last week WPX had a change of heart and said in essence, “Go ahead and keep the water buffaloes. We’ll donate them to you if you want them that badly.” To which we say, it was not only a smart PR move but a nice thing, the “right thing,” to do. It immediately denies the anti-drilling crazies more parading in front of TV cameras to talk about how heartless the drilling industry is. Here’s the latest on the Franklin Forks saga…
Read More “WPX Decides to Let Franklin Forks Families Keep Water Tanks”
Anti-Drilling/Fossil Fuel | Chautauqua County | Electrical Generation | Industrywide Issues | New York

Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas
December 16, 2013December 16, 2013

Looks like the good residents in Dunkirk, NY (near Buffalo) have dodged a major tax bullet. Last week MDN told you about hypocritical anti-drillers who oppose converting coal-powered electric plants in both Ithaca and Dunkirk into being powered by natural gas–simply because they don’t like fossil fuels (see Anti-Drillers Oppose Converting 2 NY Electric Plants to NatGas). As we pointed out, the plants in Dunkirk and Ithaca provide something like 40% of the tax revenue for the local towns and schools where they are located. Closing either plant would devastate that community and force some residents to leave after taxes skyrocket. The Dunkirk plant has been saved.

In a strange twist of fate, Gov. Andrew “the fracking ditherer” Cuomo slogged through three feet of snow in Dunkirk to crow that a deal has been reached to keep the plant open and convert it from burning coal to burning natural gas. Oh, the plant will burn natural gas fracked in other states and pipelined to NY. Ironic, no? Here’s the story…
Read More “Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas”
Anti-Drilling/Fossil Fuel | Athens County | Industrywide Issues | Ohio

Athens County Apologizes for Calling Anti-Drillers ‘Terrorists’
December 16, 2013December 16, 2013

Funny, unsettling, maddening–all of the above is the situation in Athens County. It is indisputable that some extreme environmentalists are terrorists–they damage property and inflict terror, which is the definition of terrorist. However, not all anti-drillers are terrorists. But some are. And so the Athens County Emergency Management Agency in selecting a pretend scenario to use for training selected an unnamed (totally fictional) anti-fracking extremist group as the focus of their training exercise.

Selecting anti-frackers for their training scenario drove the wackos in the Athens County Fracking Action Network right over the proverbial edge. They spit and sputtered and blustered that their sensibilities had been mightily offended, and so the Athens County Emergency Management Agency issued an apology to the poor babies, even though the Fracking Action Network was not the named boogeyman of the exercise–nor even hinted at…
Read More “Athens County Apologizes for Calling Anti-Drillers ‘Terrorists’”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Seneca Resources

Seneca Resources – Now Drilling 2X Wells in Same Amount of Time
December 16, 2013December 16, 2013

Yesterday the Philadelphia Inquirer took an inside look at major Marcellus Shale driller Seneca Resources (the drilling subsidiary of National Fuel Company) and the dramatic increase in efficiencies Seneca has achieved. Like Cabot and other Marcellus drillers, Seneca just keeps getting better with time. A few years ago it took Seneca a month to drill a new Marcellus well. Today? About 16 days–roughly half the time. Put another way–they now drill two wells in the time it used to take them to drill one.

Not only that, the length of the borehole Seneca drills is much longer, meaning each well is more productive (more gas flows out). No wonder those in the industry call shale fracking a miracle. Those who say shale drilling “won’t last, wells will run dry before you say Bob’s your uncle” are either willfully ignorant of the facts–or just plain lying. Here’s a look behind the scenes at dramatically improved Seneca…
Read More “Seneca Resources – Now Drilling 2X Wells in Same Amount of Time”
Crime | Industrywide Issues | Litigation | Ohio | Trumbull County | Wastewater

Youngstown Protesters Get Light Treatment in Local Court
December 16, 2013December 16, 2013

Two ~~nutjobs~~ protesters were arrested last month for blocking trucks from accessing an injection well facility in Niles (Trumbull County), Ohio–near Youngstown (see 2 Anti-Drillers Arrested at Youngstown Injection Well). We now know their names: John D. Williams, 57, of North Cleveland Avenue, Niles, and Mary C. Khumprakob, 21, of Glacier Heights Road, Youngstown.

On Friday they both pleaded no-contest, meaning “guilty,” in Niles Municipal Court, and the judge, Thomas Townley, gave them the equivalent of a love tap on the wrist–a $50 fine and $137 in court costs. Seems it’s pretty cheap to shut down a legal, legitimate business in Niles…
Read More “Youngstown Protesters Get Light Treatment in Local Court”
Crime | Indiana County | Industrywide Issues | Pennsylvania

Falcon Drilling COO Pleads to Embezzling $9.2M from Company
December 16, 2013December 16, 2013

A story that began more than a year ago is still playing out. In December 2012, two employees of Falcon Drilling Company, a Marcellus Shale drilling contractor with 13 rigs headquartered in Indiana, PA, were charged with embezzling money from the company (see 2 Employees Charged with Embezzling $6M from Falcon Drilling). One of those employees, the Chief Operating Officer no less, worked out a plea bargain with federal prosecutors just last week.

Here’s what’s known (and what isn’t) about the plea deal:
Read More “Falcon Drilling COO Pleads to Embezzling $9.2M from Company”
Energy Services | Industrywide Issues | Kinder Morgan | MarkWest Energy | NGLs | Pipelines

Kinder Morgan/MarkWest Proposed NGL Pipeline Gets a Nickname, Map
December 16, 2013December 16, 2013

A month ago MDN told you about a then-unnamed new natural gas liquids (NGL) pipeline being planned by Kinder Morgan and MarkWest that will run from the Utica/Marcellus to the Gulf Coast (see KM & MarkWest Announce Open Season for NE to Gulf NGL Pipeline). At the time Kinder announced an open season for the new pipeline that will end this week, on Dec. 20.

What we didn’t have then but do have now is a name for the pipeline, and a map. The name is the Utica Marcellus Texas Pipeline. We even have a nickname from Kinder. Because the pipeline will transport Y-Grade NGLs from the Utica and Marcellus Shales to the Texas Gulf Coast, they call it “the Y-Grade Pipeline”. Below is a description of the Y-Grade project along with a full-size map showing the proposed route…
Read More “Kinder Morgan/MarkWest Proposed NGL Pipeline Gets a Nickname, Map”
Accidents | Energy Companies | Health Impacts | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Did Range Resources Cover-Up Spill at Well Site in PA?
December 13, 2013December 13, 2013

Here we go again. A lawsuit has been filed against Range Resources in Amwell Township (Washington County), PA by a group of neighbors close to the Yeager well drilled by Range with claims that they were “sickened” (no word on how) by drilling at the well site. The big news is that there was an alleged spill at the drill site in 2010 (three years ago!) and that the spill was “covered up” and not properly reported by Range. A juicy rumor like that is all PA Rep. Jesse “fake online ID” White needed to demand that state Attorney General Kathleen Kane (an anti-driller) and a host of other government officials should investigate this forthwith. Jesse, you may recall, was caught red-handed using fake online IDs to impersonate and slander his own pro-drilling constituents. He still hasn’t had the decency to resign and the Democrat Party in PA hasn’t had the decency to remove him from office. A new low in PA politics.

Here’s the rumor about a three year-old spill that may or may not have happened and the dreaded cover-up by the evil villain, ~~Snidely Whiplash~~ Range Resources (sarcasm intended):
Read More “Did Range Resources Cover-Up Spill at Well Site in PA?”
Anti-Drilling/Fossil Fuel | Energy Companies | Erie County (NY) | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Seneca Resources

Erie County, NY Falls for the FWW Lie, Bans Fracking & Road Salt
December 13, 2013December 13, 2013

On Monday MDN told you about an eminent vote in western NY to ban fracking (see Erie County (Buffalo) NY to Vote on “Near-Ban” of Fracking). Yesterday, legislators for Erie County, NY fell into the trap set by the odious Food & Water Watch–legislators voted 9-2 to ban the use of road salt and dust suppressant safely manufactured from brine water that comes from oil and gas drilling. They also voted to deny taxpayers in Erie County the right to profit from drilling on county-owned land, when and if it ever comes to the county.

Right at the front of the hit parade gloating was FWW agitator, er, “organizer” Rita Yelda, who continues to falsely slander fracking and the products made as a result of fracking, like deicer (road salt). We hope Erie County residents enjoy paying for steep legal fees when this illegal law is challenged next year by Buffalo-based National Fuel (Seneca Resources)…
Read More “Erie County, NY Falls for the FWW Lie, Bans Fracking & Road Salt”
Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Very Cool Map from ODNR Showing OH Utica Wells Permitted/Drilled
December 13, 2013December 13, 2013

Last week the Ohio Dept. of Natural Resources (ODNR) released a very handy map that shows where Utica Shale drilling is happening in the state. It has different colored dots to denote where permits have been issued, where wells have been drilled, and where wells have been drilled and are now producing. Running along the right bottom corner is a tally (as of 12/6/13) for how many permits have been issued by driller, which now totals over 1,000 permits.

We really like this map, and you think you will to! Here it is:
Read More “Very Cool Map from ODNR Showing OH Utica Wells Permitted/Drilled”