Industrywide Issues

Energy Services | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Sunoco Logistics Planning Second Mariner East Pipeline for NGLs
November 22, 2013November 22, 2013

More than a year ago MDN brought you the news that Sunoco Logistics’ Mariner East pipeline–an existing pipeline being upgraded to convey propane and ethane from western Pennsylvania all the way to the Marcus Hook refinery near Philadelphia–was completely spoken for (see Mariner East Pipeline to Philly Refinery 100% Committed). Range Resources announced at the time that they would be the main user of the pipeline (see Range Announces They’re Main Shipper for Mariner East Pipeline). Upgrades to the Mariner East are under way now and will be online beginning in 2014.

In re-reading those stories from last year, we should have noticed something we did not. Sunoco said they were considering a second “open season” for Mariner East. If the pipeline is already 100% committed, how can they take on even more customers? Answer: Build a second Mariner East pipeline. Thanks to an excellent bit of reporting in the Harrisburg Patriot-News, we now understand what that statement meant last year. In a story published yesterday, the Patriot-News says Sunoco is working on a plan to build a second Mariner East pipeline across PA. Although there are currently few details, the outlines of where the pipeline may go are taking shape thanks to notifications received by PA landowners in the Susquehanna Valley area…

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Anti-Drilling/Fossil Fuel | Industrywide Issues | Jobs | Research

Anti-Drilling Cabal Issues Biased Report on Marcellus/Utica Jobs
November 22, 2013November 22, 2013

A collection of highly partisan anti-drillers (people who abjectly hate fossil fuels) get together and issue a “report” that claims to be backed by “research” (a few interviews with a few people in a few counties), and it’s instantly news. The officious sounding and never before heard from Multi-State Shale Research Collaborative has just issued a report saying, “Nah, the Marcellus and Utica Shale industry doesn’t create all that many jobs after all.” Er, right. Who is the Multi-State Shale Research Collaborative? A group of five anti-drilling groups who use the word “nonpartisan” so many times if we had a nickle for every time it appears on their websites…you get the idea. This new league of anti-drillers (“cabal” about pegs it) attempts to appear nonpartisan and above it all. They are not. They are completely partisan on the issue of drilling. How do we know? Look at who funds them and their so-called research on employment: The Heinz Endowments, Hillsdale Fund, Park Foundation, and Stoneman Family Foundation. Need we say more?

Below are the press release and the full report issued by the cabal. It’s not really worth anyone’s time to read it–we present it to you so you are informed of the latest coordinated and scripted attack against shale drilling–so when you see Reuters/Bloomberg/AP/Gannett et all pick it up and breathlessly report it as real news, you’ll know what you’re looking at. Just more propaganda from the usual suspects…
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Industrywide Issues | Lackawanna County | Pennsylvania | Taxation

Marcellus Drilling Helps Fix Biggest Polluter of Chesapeake Bay
November 22, 2013November 22, 2013

Natural gas will help clean up the single largest source of pollution to the Chesapeake Bay. What is that source? Acid mine drainage that pours out of a single hole called the Old Forge borehole drilled by the federal government (Army Corps of Engineers) in 1962. Some 60-100 million gallons of acid mine water pour out of that hole every day–into the Lackawanna River which dumps into the Susquehanna River which empties into the Chesapeake Bay.

Where does all that water come from (what causes it), and what does natural gas have to do with fixing the problem? Read on…
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Hydraulic Fracturing | Industrywide Issues | Research

New Report Goes Back to Basics: What is Fracking & Is It Safe?
November 22, 2013November 22, 2013

Every now and again it helps to take a step back and review the fundamentals–the basics. A wide swath of the American public still doesn’t understand what fracking is, and only reads the occasional headline that seems to paint the picture that shale drilling is negative or dangerous for the environment. Wouldn’t it be great to have a “this is basics of shale drilling and fracking” kind of document? A primer of sorts, that strips out the wild allegations and concentrates on the facts–including facts about the negatives of shale drilling?

We now have such a document. Earlier this week, the nonpartisan Heartland Institute issued a 36-page primer/research paper titled, “Hydraulic Fracturing: A Game-Changer for U.S. Energy and Economies” (full copy embedded below). This excellent paper answers the “What is it and how does it work?” questions along with environmental safety questions. The paper is written in understandable language and is extensively footnoted (i.e. they offer proof for their statements). Here’s the announcement about this important new resource:
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Crime | Industrywide Issues | M&A | Mahoning County | Ohio

Denver Co Buys OH Wastewater Polluter D&L Energy for $20.7M
November 21, 2013

MDN has long chronicled the bad actions of Ben Lupo, the guy who directed one of his employees to dump thousands of gallons of frack wastewater down a drain that eventually ended up in the Mahoning River near Youngstown, OH (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). The business that did the dumping was Hardrock Excavating, but because Lupo owns several businesses and because they’re all so intertwined together, another of his businesses, D&L Energy, got caught in the mess and ended up in bankruptcy (see OH Wastewater Dumper D&L Energy Gets Business Death Sentence).

For a time, the Ohio Dept. of Natural Resources would not let D&L sell off it’s assets (see D&L Wants to Sell Remaining Assets at Auction, ODNR Says No). However, they finally agreed to a plan for D&L to auction its assets and that happened last week. The U.S. Bankruptcy Court of the Northern District of Ohio approved the auction yesterday. Who bought D&L? And what does it mean for landowners who signed with D&L (the company owned over 30,000 acres of shale drilling leases)? Read on…
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Hydraulic Fracturing | Industrywide Issues | Regulation

House Passes Bills to De-Fang BLM Frack Rules, Speed Up Permits
November 21, 2013November 21, 2013

Republicans have grown tired of heavy-handed regulations coming out of the Obama administration, from the Obama EPA and Dept. of Interior (DOI) that seek to strangle the blossoming energy industry in this country due to shale drilling. Mainstream media tells you Obama is an “all of the above” guy–he likes that shale drilling stuff ’cause he’s a big thinker and sees the big picture, and even some in his own party grumble and complain about his support for drilling. It’s bunkum. Obama and his sycophants seek to enforce federal regulations on drilling any way they can–to slow it down.

Republicans have had enough and passed two bills yesterday: one would de-fang the DOI Bureau of Land Management’s plan to enforce new fracking regulations on federal lands; the other speeds up the permitting process for drilling on federal lands, to allow more drilling more quickly…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Research | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica States Slip in Global Petroleum Survey
November 21, 2013November 21, 2013

Each year, the Canadian-based Fraser Institute surveys petroleum industry executives and managers (864 of them for 2013) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? It’s vitally important to understand what drives investors because without money, drilling doesn’t happen.

The Global Petroleum Survey, as it’s called, tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. MDN reported the rankings last year (see Energy Execs Rank Drilling Locations Including WV, OH, PA, NY). A copy of this year’s full report/rankings is embedded below. How did Pennsylvania, Ohio, West Virginia and (yes) New York fare this year, compared to last?…
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Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

OH Annual O&G Report: Utica 36% of All Wells Drilled in 2012
November 21, 2013November 21, 2013

On Tuesday the Ohio Dept. of Natural Resources (ODNR) published their 48th annual “McCormac Report”–the 2012 Ohio Oil & Gas Summary report chocked full of charts, maps and statistics about oil and gas drilling in Ohio (full copy embedded below). As you can imagine, a lot of the report is dedicated to Utica Shale drilling. The report covers calendar year 2012, the year when Ohio’s Utica Shale really started to blossom. However, it does not include data for 2013, which is the year when the OH Utica grew up and became a serious shale play contender. Still, there’s lots to love about the McCormac Report, so named for Mike McCormac, the guy who’s been producing it for the past 32 years.

We learn in the report that in total, $706 million worth of natural gas and oil was drilled in Ohio in 2012. We also learn the state saw it’s longest ever horizontal well drilled–16,664 feet! That’s an astonishing 3.15 miles long (drilled in Jefferson County). And we learn that 36% of all wells drilled in 2012 were Utica Shale wells. Here’s a few highlights from the report:
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Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Utica Shale

Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling
November 21, 2013November 21, 2013

A 51-year old forced pooling law in Pennsylvania that strangely does not apply to the Marcellus Shale layer, but does apply to the deeper Utica Shale layer, is being put to the test. In early October, MDN told you that Hilcorp had decided to take “the low road” and sue a landowner in Lawrence County, PA to force that landowner to allow his 14.6 acres to be drilled under using the old law (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner).

The PA Dept. of Environmental Protection balked at invoking the old law to force the landowner and instead tossed this hot potato to the Environmental Hearing Board. The Hearing Board ruled this week that it doesn’t have jurisdiction and that the matter properly does belong back at the DEP. So what will the DEP do now?…
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Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

Forced Pooling Talk at WV Legislative Interim Meeting
November 21, 2013November 21, 2013

Like a bad penny, the issue of forced pooling (or “unitization” or whatever you want to call it) keeps turning up in West Virginia. WV legislators are in the midst of holding an interim meeting, and this week they heard from both supporters and opponents of forced pooling.

The sharp lawyers from Lewis Glasser Casey & Rollins made this observation about the session where it was discussed:
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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Congressman Chides Cuomo for Continued Fracking Delay
November 21, 2013November 21, 2013

Well there’s at least one New York Congressman with a spine–willing to stand up and call Gov. Andrew “can’t make up his mind on fracking” Cuomo what he is: someone who kowtows to fringe anti-drilling, anti-business wackos. Republican Congressman Chris Collins represents the 27th district in western NY–everywhere from the edge of Buffalo to the edge of Rochester, and from Lake Ontario to halfway down the state. It’s a large district.

Collins was speaking on the floor of the house yesterday in support of H.R. 2728 (see our companion story today on the two pro-drilling House bills that passed yesterday). Here’s Collins chiding his lordship Andy:
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

AP’s “Evidence” Shell Still Considering a PA Cracker Plant
November 20, 2013November 20, 2013

It seems that darned West Virginia ethane cracker plant is just getting too much attention, so the AP has written a “Me too! Me too! Look at me! Pick me!” article about the proposed Shell ethane cracker plant planned for Beaver County, PA. AP has “investigated” (there’s a first!) and found certain evidence that may point to Shell actually going forward with their cracker plant. As MDN pointed out tongue-in-cheek just last week, the Greater Pittsburgh area has some angst that the WV cracker may spell the end of the Shell cracker in their state–so there’s a bit of trash talking going on (see Clash of the Ethane Cracker Titans: PA vs WV Smackdown).

AP to the rescue! Here’s the evidence from the AP that yes indeed, Shell really really really is maybe considering may possibly might actually build a cracker plant near Pittsburgh after all:
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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Allegheny County (PA) Council Votes Down Drill Ban for Parks
November 20, 2013November 20, 2013

A few weeks ago MDN told you about a meeting convened by PA State Sen. Jim Ferlo (we called it Ferlo’s Follies) where Ferlo and other anti-drillers carped and complained about a proposed plan to allow drilling under (not on) some Allegheny County, PA parks. We noted that one anti-driller at the meeting offensively and shamefully shoved an 8 year-old child in front of the microphones to plea for a ban on drilling in parks (see PA Anti-Drillers Shove Their Children Before the Microphones).

We’re happy to report the anti-drilling rabble-rousers have been defeated–soundly. Last night the Allegheny County Council voted down the proposed 3-year moratorium on drilling under (not on) county parks, and they voted it down rather convincingly: 9 to 2…
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Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | West Virginia | Wood County

Analysis: Why Parkersburg, WV for a Cracker Plant Complex?
November 20, 2013November 20, 2013

Don Surber from the Charleston Daily Mail writes a good analysis article in today’s edition that attempts to answer the question, “Why would Brazilian company Odebrecht pick Parkersburg, WV to build an ethane cracker plant?” Surber argues the selection of Parkersburg as the location vaults it into potentially being the most important city in the entire state of WV. He’s right.

Surber’s main point: Don’t focus on the ethane cracker, as nice as that will be. Instead, it’s the three polyethylene plants Odebrecht is going to build that are the real story, the real diamond, if (still a big if) the ethane cracker gets built. Why? It is the polyethylene (plastics) plants that will create a renaissance in manufacturing (i.e. jobs) in the region…
Read More “Analysis: Why Parkersburg, WV for a Cracker Plant Complex?”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation | Wastewater

NJ Antis Say Delaware River May See Barged Frack Wastewater
November 20, 2013November 20, 2013

This was predictable. The radical Sierra Club (of New Jersey) and other anti-drilling organizations including the New Jersey Environmental Federation, Environment New Jersey and the always rabidly anti-drilling Delaware Riverkeeper have joined forces in a coordinated attack against the U.S. Coast Guard’s proposal to allow barges to carry frack wastewater on America’s waterways–including the mighty Delaware River.

Never mind that barges containing chemicals far more deadly than frack wastewater make their way up and down our rivers every day (including the Delaware)–right now. Anti-drillers conveniently don’t mention that little fact. They just want fracking wastewater to be banned, because they want fracking banned, because fracking leads to more drilling and use of that awful, nasty, horrible fossil fuel, natural gas…
Read More “NJ Antis Say Delaware River May See Barged Frack Wastewater”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Lackawanna County | Pennsylvania | Regulation

Scranton Area TU Chapter Hears about New Tactic to End Drilling
November 20, 2013November 20, 2013

As MDN pointed out a few days ago, anti-drilling members of the anti-drilling Trout Unlimited (TU) have changed tactics (see TU: If You Can’t Beat Shale Drillers, Try a New Lie). Instead of calling for an outright ban on Marcellus Shale drilling in Pennsylvania, they’ve decided to call for over-regulation–attempting to make their requests sound reasonable and fair. The intent is still the same: stop drilling any way you can.

TU community ~~agitator~~ organizer Paula Piatt traveled from Mifflin County (central PA) to Lackawanna County (northeast PA) to spread the “let’s regulate them to death” message yesterday…
Read More “Scranton Area TU Chapter Hears about New Tactic to End Drilling”