Industrywide Issues

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…
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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!…
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Energy Services | Ethane | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Extends Open Season for “Little” Ethane Pipeline
December 11, 2013December 11, 2013

MarkWest conducted an open season for their “little” 30-mile ethane pipeline that will run from Majorsville, PA to Houston, PA (in Washington County) from early November until December 9th. The MarkWest Liberty Ethane Pipeline is a pipeline to other pipelines (see MarkWest Open Season for “Little” Ethane Pipeline). Ethane arriving in Houston, PA will be able to hitch a ride out of the northeast via other pipelines to cracker plants and processing facilities in Canada and the Gulf Coast.

Apparently the open season didn’t garner as much business as MarkWest had hoped, because yesterday they announced “ya got a few more days to sign up.” The new deadline for the open season is this Friday, December 13th at 5:00 pm Eastern. So hurry and sign up, while you still can! Here’s the MarkWest announcement from yesterday extending the open season for the Liberty Ethane Pipeline:
Read More “MarkWest Extends Open Season for “Little” Ethane Pipeline”
Energy Companies | Halcon Resources | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Trumbull County

Halcon Proposes 14-Mile Pipeline from Vienna to Lordstown, OH
December 11, 2013December 11, 2013

Halcon Resources has been pretty tightfisted when it comes to spending money on leases for drilling–and now, perhaps–for pipelines as well. More than a year ago MDN told you about a landowner group that had formed in the Lordstown, OH area that hoped to negotiate new leases. The landowners were bound under 20-50 year-old leases purchased by Halcon that never envisioned shale drilling. Halcon said they wanted to work with landowners but stopped short of agreeing to renegotiate the leases (see Halcon Resources Responds to Lordstown, OH Landowners Group).

Halcon not only drills wells, they also have a midstream (pipeline) division to connect them. Halcon even stores and ships oil and gas–they’re building a $70 million storage and railroad transloading facility in Lordstown (see Halcon Resources Plans $70M Oil Terminal in Lordstown, OH). As part of the new storage facility, Halcon wants to run a 14-mile pipeline from Vienna to Lordstown. The problem, according to some communities along the route, is that Halcon doesn’t want to pay all that much to install a permanent pipeline…
Read More “Halcon Proposes 14-Mile Pipeline from Vienna to Lordstown, OH”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Handful Protest Mariner East Pipeline at Sunoco HQ in Philly
December 11, 2013December 11, 2013

Something like two dozen paid, professional protesters showed up at Sunoco Logistics headquarters yesterday in downtown Philadelphia to preen before (a few) media cameras and make outrageously false statements about the Mariner East pipeline. These are people with nothing better to do with their time than to desperately try to grab 15 minutes of fame.

Here’s an example of the bilge that flowed from the groups financing the protest:
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Hydraulic Fracturing | Industrywide Issues | Marion County | West Virginia

WV Well Pad Liner Company Gets Shot of Investment Money to Grow
December 11, 2013December 11, 2013

Extreme Plastics Plus (EPP) has been manufacturing and installing well pad liners since 2007. Pad liners protect the ground from accidental spills of frack wastewater and chemicals used during the drilling process. Located in Fairmont, WV, EPP’s customers are in the Marcellus and Utica Shale region. In order to expand, EPP has just accepted an undisclosed amount of investment money from Hastings Equity Partners. According to EPP CEO Bennie Wharry, the money, and Hastings’ expertise, will help EPP grow “to the next level.”

The Hastings/EPP announcement:
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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Can Towns Ban Fracking in NY? Webinar Today Tackles Question
December 11, 2013December 11, 2013

Can localities ban oil and gas development in New York State? That is the question New York’s highest court (Court of Appeals) will answer when it hears arguments by attorneys representing Norse Energy and a dairy farmer versus the towns of Dryden and Middlefield. The decisions in these two important cases could have a huge impact on the future of shale development in New York. If the court decides that municipalities can ban drilling town- or citywide, MDN believe’s it lights out on serious shale drilling in New York–forever. Happily, we don’t think the court will decide that way.

A webinar is being offered today, Wednesday, Dec. 11 at 1 pm that will address that issue. Greg Sovas, President and owner of XRM, LLC and former Director of the Division of Mineral Resources at the NYS DEC will review the history of the supersession clause and its importance, implementation over the past thirty years and what has changed, the arguments being made on both sides in the court case, and how a decision either way could affect the future of oil and gas development in New York State. A Q&A at the end.

MDN encourages you to attend this 30-minute presentation. Sign up here: https://www1.gotomeeting.com/register/694678240.
Broome County | Energy Services | Industrywide Issues | Laser Northeast Gathering | New York | Pipelines | Williams

Williams Files to Expand Marcellus Pipeline in Broome County, NY
December 10, 2013December 10, 2013

Two years ago the newly completed Laser Northeast Gathering pipeline, a 33-mile pipeline stretching from Susquehanna County, PA across the border into Broome County, NY where it connects to the Millennium Pipeline, was sold by Delphi Midstream Partners to Williams Partners (see Laser Northeast Pipeline Selling to Williams for $750M). There is “new news” to share about the formerly named Laser, now named the “New York Mainline,” courtesy of MDN friend Andy Leahy, writing on his excellent NY Shale Gas Now! blog.

Sifting through a pile of digital paperwork, Andy found that in early December Williams filed a request to expand the Laser/NY Mainline by adding an additional 16″ pipeline loop–right here in the good old Town of Windsor, NY (where MDN is written!). The new pipeline loop will expand the capacity of Marcellus Shale gas flowing out of northeast PA and into the Millennium pipeline. Here’s Andy’s report…
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Anti-Drilling/Fossil Fuel | Chautauqua County | Electrical Generation | Industrywide Issues | New York | Regulation | Tompkins County

Anti-Drillers Oppose Converting 2 NY Electric Plants to NatGas
December 10, 2013December 10, 2013

This is the tale of two electrical generating power plants. Both are located in New York State–on opposite sides of the state. One is in Tompkins County (near Ithaca, NY), the other in Chautauqua County (Dunkirk, near Buffalo, NY). Both are powered by coal and both will either need to convert to natural gas or close down.

Something else both have in common: anti-drilling nutters want them closed rather than converted from burning coal to burning natural gas–even though closure means school and property taxes in both areas will go through the roof–higher than the nosebleed rates they already are. In both cases the power plants are the single largest taxpayer in their respective municipalities. Makes no difference to the nutters because most of them don’t live there and could care less. An update for both the Cayuga Power Plant and the Dunkirk Power Plant…
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Hydraulic Fracturing | Industrywide Issues | Research

EIA’s Dec DPR: Marcellus Now Provides 18% of US NatGas
December 10, 2013December 10, 2013

Our new favorite monthly report from the ace analysts at the U.S. Energy Information Administration (EIA) was issued yesterday–the latest and third installment of the Drilling Productivity Report (DPR). We’ve embedded a full copy of the report below for your viewing pleasure (love the charts they use). The monthly DPR provides key information about how quickly wells decline in production–it’s one report you want to keep a close eye on.

In addition to the latest DPR below, we’ve also included screenshots for two tables with the raw numbers EIA uses to generate the reports (tables we wish they would include in the monthly DPR). Below the DPR we’re including a bit of analysis work done by the EIA based on the DPR. The EIA analysts say their research shows the mighty Marcellus, as of this month, is producing 18% of all natural gas produced in the U.S. A single play! Truly astonishing. It shows the incredible importance of the Marcellus to our country’s energy infrastructure…
Read More “EIA’s Dec DPR: Marcellus Now Provides 18% of US NatGas”
CONSOL Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Statewide WV | West Virginia

CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too
December 10, 2013December 10, 2013

MDN brought you today’s CONSOL press announcement that they have closed a deal with Dominion Resources to take over 90,000 acres of Marcellus and Upper Devonian Shale leases for $190 million (see separate story today). Not mentioned in the CONSOL announcement is the deal also includes CONSOL using Dominion to pipeline their West Virginia production to market. Dominion reports in addition to the deal with CONSOL they’ve signed agreements with several other companies too, and will deliver WV production to pipelines in Ohio.

Here’s the “complimentary/competing” press announcement issued today from Dominion. Their side of the story, if you will…
Read More “CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH Repubs Offer Excuses Why This Time High Utica Taxes are OK
December 10, 2013December 10, 2013

Speaker of the Ohio House William G. Batchelder (Republican-Medina), Speaker Pro Tempore Matt Huffman (Republican-Lima), and other members of the Ohio House Republican Caucus offered their pathetic excuses on why this time it’s a-OK to steal money from Ohio landowners and drilling companies and give it to other residents of Ohio–in the form of an income tax break. Apparently there’s lack of spine to do the right thing and reduce spending in Ohio (although that particular disease is not endemic to Ohio).

Here’s the Republican so-called leadership’s bland, generic ~~excuses~~ statement about why it’s OK to raise taxes on drilling this time:
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Open Season for Bluegrass NGL Pipeline Extended Extra 30 Days
December 10, 2013December 10, 2013

In October MDN told you the proposed Bluegrass Pipeline, a natural gas liquids (NGL) pipeline that will be built from the Marcellus/Utica to the Gulf Coast, was far enough along that joint venture partners in building the Bluegrass Williams and Boardwalk Pipeline launched an open season to lock in drillers who want to ship their NGLs out of the northeast (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). The open season was due to end next week, Dec. 16.

Late yesterday Williams/Boardwalk extended the open season another month, to Jan. 17, 2014. They say the extension is at the request of shippers who need more time to decide. Is that just blowing smoke? For real? How would you read the tea leaves? Here’s the announcement:
Read More “Open Season for Bluegrass NGL Pipeline Extended Extra 30 Days”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Owner of Former Sunoco Refinery Speaks on Marcellus, Future
December 10, 2013December 10, 2013

The new owner of the former Sunoco refinery in South Philadelphia says purchasing the refinery did not start out as a rescue operation (saving 850 jobs), but it did end up being one. Philip Rinaldi, CEO of Philadelphia Energy Solutions, was the guest of honor at a United Steelworkers Local 10-1 banquet last Saturday. His comments reveal him to be plain spoken and not without a surprise or two. Rinaldi fancies himself an old-style industrialist–he likes businesses that make things, saying you can’t have a society that only flips hamburgers.

Rinaldi also said the Marcellus will play a key part in his future plans. Here’s the interesting Q&A with Philip Rinaldi, his comments about why he chose the Philly refinery and about what the future may hold:
Read More “Owner of Former Sunoco Refinery Speaks on Marcellus, Future”
Anti-Drilling/Fossil Fuel | Crestwood Midstream | Energy Services | Industrywide Issues | Inergy | New York | Schuyler County

Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’
December 9, 2013December 9, 2013

It’s interesting to MDN that when anti-fracking protesters call for boycotts of businesses that either support or (gasp) are part of the shale drilling industry, such a boycott is considered brave and courageous and a-OK. But when someone on the pro-drilling side suggests those who support fracking and the natural gas industry may want to boycott the businesses donating money and time to fight the natural gas industry, that’s “bullying” and mean and evil. Anyone else smell a hypocritical rat? We’re referring to a recent brouhaha over Inergy Midstream’s (now part of Crestwood Midstream) plan to develop a liquid propane storage facility using depleted salt caverns along the edge of Seneca Lake near Watkins Glen, NY. MDN has long covered the fight by Inergy to bring the only new storage facility proposed in the northeast (badly needed), and the people who want to stop it (see NY Protesters Arrested for Blocking NatGas Storage Facility).

In June, a VP for Inergy sent an email to 25 people suggesting they may want to boycott the businesses using their time and money to actively oppose the Inergy facility. Those businesses are part of the “Business Coalition” of the organization called Gas Free Seneca (GFS). The email sent by the Inergy VP–now six months old but but just coming to light–has GFS in a tizzy. GFS has responded with their own email that they are “extremely disturbed” by this “bullying” from Inergy. That is, GFS doesn’t like the shoe being on the other foot for a change (poor babies). We have the story of the email, and the list of the (current) 181 NY businesses that Inergy (and you) may want to consider boycotting…
Read More “Inergy: Boycott NY Businesses that Support ‘Gas Free Seneca’”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

PA Media Continues to Henpeck Corbett Admin on Warming Mythology
December 9, 2013December 9, 2013

The reliably anti-drilling StateImpact Pennsylvania (left-leaning NPR affiliate) continues to henpeck PA Gov. Tom Corbett’s administration over the fantasy of “global warming.” They’re trying to fabricate an issue out of the fact that some on the Corbett team don’t believe in global warming as strongly as they do. Some in the Corbett administration have the temerity (we’d say the guts) to challenge the notion that Planet Earth is about to fry to a crisp because of the carbon-producing activities of humans. The whole notion is so silly it’s beyond belief, but saying so out loud will earn you the badge of being a quack–a badge that MDN proudly wears.

StateImpact PA tried to tar & feather Acting Secretary of the Dept. of Environmental Protection Chris Abruzzo last week (see PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming). StateImpact PA thought they might as well do a 2-for-1 drive-by reporting special, so they also went after Corbett energy adviser Patrick Henderson. Here’s how that went…
Read More “PA Media Continues to Henpeck Corbett Admin on Warming Mythology”