Industrywide Issues

Energy Services | Heckmann | Industrywide Issues | Wastewater

Wastewater Company Nuverra: Too Much Success in Marcellus/Utica
July 31, 2013July 31, 2013

Nuverra Environmental Solutions (formerly Heckmann), a company that recycles and otherwise disposes of shale drilling wastewater and leftover rock and dirt from drilling, decided to release the “bad news” ahead of an earnings call on August 8 that 2Q13 profits will not meet expectations. They’ll show earnings of a measly $165.5 million. Nuverra has a growing presence in the Marcellus and Utica Shale region.

So what were the challenges in 2Q13 that caused Nuverra to falter financially? Believe it or not, one of the reasons for their “poor” financial showing is stronger than predicted growth for their business in the Marcellus/Utica. The strong growth forced them to parcel out work to subcontractors, which costs more than having your own employees do the work. Nuverra says they’re now ramping up and expanding their own people in the Marcellus/Utica…
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Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

LA Times Attempts New Hatchet Job on Fracking in Dimock
July 30, 2013July 30, 2013

It appears that the Los Angeles Times needs to bump up their circulation numbers, so this past Sunday they trotted out the “Dimock” story once again (perhaps inspired by watching Gasland 2 on HBO). The Times claims to have a leaked “internal report” from the EPA, which we learn is (laughably) a PowerPoint presentation, not a real report. The article’s fictional thesis is that “big oil” has gotten to the Obama EPA and that at least some brave souls inside the EPA still believe, contrary to their own scientist’s research, that shale drilling in Dimock, PA was responsible for “contaminating” nearby water wells with methane and nefarious chemicals like arsenic–even though arsenic is naturally occurring throughout the region. (Pay no attention to those naturally-occurring chemicals behind the curtain, Toto!)

MDN would like to make a bold assertion: The LA Times emperor has no clothes. We’ve searched high and low and the so-called PowerPoint “EPA report” they claim to have possession of is nowhere to be found. We think it probably exists. Maybe. Perhaps. However, what we have is the LA Times making a wild claim–their own interpretation–of what is on the PowerPoint slides, without sharing the source document with anyone else. Given the Times and its reporters are liberal and anti-drilling in the extreme, excuse us if we say that until they share the so-called EPA internal report, we assume they’re lying about what’s in it. The motives and veracity of reporting by the Times is to be questioned and is, for us, the real story here…
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Hydraulic Fracturing | Industrywide Issues | Muskingum County | Ohio | Regulation | Utica Shale

Surprise! Blue Rock State Forest in Eastern OH to be Fracked
July 30, 2013July 30, 2013

MDN has kept readers informed about new federal fracking rules proposed by the Dept. of Interior’s Bureau of Land Management (BLM), rules that will make it quite expensive to drill (see New BLM Fracking Rule will Cost Drillers Nearly $100K per Well). We haven’t been overly concerned about the new BLM fracking regulations in the Marcellus/Utica because, as we told you, the rules will only affect fracking on federal land–almost all of which is located in the western U.S. Until now, our concern with the BLM rules has been that the federal government may, at some point, force the BLM rules on the states (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking).

However, it now appears the new BLM rules may apply in the Utica Shale much sooner than we thought. The Blue Rock State Forest, a 4,578-acre forest in Muskingum County where the state of Ohio owns the surface but the federal government owns the mineral rights, will soon be opened up by the feds for fracking. This revelation will no doubt set off the berserker alarms at anti-drilling HQ…
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Access Midstream Partners | Columbiana County | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | NGLs | Ohio | Processing Plants | Statewide OH | Utica Shale

M3’s Kensington, OH NGL Plant Now Live & Processing
July 30, 2013July 30, 2013

A new $400 million natural gas liquids (NGL) processing plant in Kensington (near Hanoverton, OH) has went online Sunday. The Utica East Ohio Midstream (UEO) plant, a joint venture owned by M3 Midstream, Access Midstream (formerly Chesapeake Energy) and EV Energy Partners, was originally supposed to be online in May. That date slipped. In June, MDN picked up on a bit of news that indicated the plant would go live “by the end of July” (see M3 Midstream’s Kensington, OH NGL Plant Launch Date Slips). The July rumored date proved correct.

Yesterday, M3 issued the following press release announcing that the UEO plant is now operating and processing NGLs. It is the first plant of its kind to go online in the Utica Shale:
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Antero Resources | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

Antero Resources: Proved Reserves Up 47% from December
July 30, 2013July 30, 2013

Major Marcellus Shale driller Antero Resources announced yesterday that their “proved reserves” are up a healthy 47% from the end of last year–to 6.3 trillion cubic feet equivalent. If you look at their 3P reserves–proved, probably and possible–the number is 27.7 trillion cubic feet. Keeping an eye on a company’s reserves is important to know how much gas they will likely produce. It’s a measure often used by stock analysts and investors, but it’s a metric worth minding for landowners too. The numbers indicate what Antero says is in the ground, how much of it is there, and how healthy the company’s balance sheet is likely to look in the coming next few years.

Antero’s announcement from yesterday, with details about what makes up the reserve number (methane, ethane, etc.):
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Hydraulic Fracturing | Industrywide Issues

Father of Shale Fracking George Mitchell Dies at Age 94
July 29, 2013July 29, 2013

On Friday, the father of modern-day shale fracking and Texas billionaire oilman George Mitchell died. More than any other person, Mitchell is responsible for the current shale drilling revolution that has changed America’s (and the world’s) energy picture. It was Mitchell who kept experimenting, with his own money, on shale drilling until he finally “cracked” the secret in the Barnett Shale in Texas in the 1990s.

In 2012, Mitchell went a little wobbly and called for federal regulation of fracking, a position we heartily disagreed with (see Father of Shale Fracking George Mitchell Talks to Forbes). However, Mitchell was a giant in the industry, and we pay our respects to him and his family. This world would be a poorer place were it not for George Mitchell and his persistence in figuring out how to frack shale. So we send him on to that great gusher in the sky…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

AP Attempts to Smear Shale Drillers as Arrogant
July 29, 2013July 29, 2013

Another AP story with anti-drilling overtones is making the rounds. This one, written by AP reporter Kevin Begos, attempts (in our opinion) to unfairly shade comments by both John Hofmeister, the former president of Shell, and Terry Engelder, Penn State geologist and the “father of the Marcellus,” as tacitly admitting that drilling has caused chemical contamination in some water supplies. They never said it, and to imply it is an outrage.

Here’s the AP article now making its way around the mainstream media echo chamber with the pretentious title, “Industry Arrogance Fueling Fracking Anger?”…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Lycoming County | Pennsylvania

The Real Reason Eco Groups Bash Fracking: Fundraising
July 29, 2013July 29, 2013

In an article published on the Enter Stage Right website, author Paul Driessen provides an eloquent defense of the many benefits–both economic and environmental–of hydraulic fracturing (i.e. fracking). The article uses the miracle of the Marcellus Shale in Williamsport, PA as a prime example (he personally visited and saw it with his own eyes).

Near the end of the article, Driessen both asks and answers and important question. If fracking is largely a good thing, and since science shows it to be safe, why do so-called “environmentalist” organizations like the Sierra Club and a plethora of “riverkeeper” clubs keep bashing it? Answer: Follow the money. It’s great for donations…
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Hydraulic Fracturing | Industrywide Issues | Statewide WV | West Virginia | Wetzel County

Striking a Balance: Preserving the Surface While Drilling in WV
July 29, 2013July 29, 2013

What happens when the mineral rights for oil and gas under a piece of land are owned by someone other than those who own the surface land itself? In West Virginia, that happens a lot–it’s a called a “split estate” and was done years ago for coal mining. Furthermore, what happens if the surface owner is the county or state government, and the land is a nature preserve, used for hunting and outdoor enthusiasts? It is a conundrum. Clearly the mineral owners have the right to access the minerals under the land, but in doing so, there’s going to be inconvenience for hunters and others using the surface land. Both sides have to work together.

The Lewis Wetzel Wildlife Management Area in Wetzel County, WV is a good example where both sides have not found a perfect solution, but it seems they have found a workable one…
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Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court to PUC: Knock Off the Zoning Reviews (for Now)
July 26, 2013July 26, 2013

Yesterday, the Pennsylvania State Supreme Court issued a ruling quashing (stopping) the state Public Utility Commission from carrying out some of its duties as specified under PA’s 2012 Marcellus Shale Act 13 law–duties tied to Act 13’s zoning provisions. It is a small and perhaps short-lived victory for the towns who had sued the PUC asking for relief from the PUC’s reviews of their zoning laws. It is a short-lived victory for the towns because the Supreme Court is due to decide on Act 13’s zoning provisions soon, so this decision is in effect until that bigger (and final) decision is made.

That’s the news. Now, to bring you up to speed on the background of this case and what yesterday’s decision means…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation | Wastewater

New CLEANER Act for Drilling Waste has a Dirty Purpose
July 26, 2013July 26, 2013

Pennsylvania Congressman Matthew Cartwright, Democrat – 17th District, has just introduced a new bill in the House of Representatives: the Closing Loopholes and Ending Arbitrary and Needless Evasion of Regulations (CLEANER) Act. The way Democrats euphomize the titles of their proposed bills is funny–torturing the language to make it sound like something it’s not. We’d like to propose our own legislation: Stop Torturing Us People In Democrat Idiotic Talkative Yammering (STUPIDITY).

This latest travesty–the CLEANER Act–perpetuates the lie that somehow oil and gas drilling have been inappropriately “exempted” from federal laws that apply to other industries. In this case, anti-drillers maintain oil and gas drilling have been inappropriately exempted from the Resource Conservation and Recovery Act (RCRA) of 1976 via legislation passed in 1980. To put oil and gas drilling under RCRA’s purview now would be to reclassify drilling waste as toxic waste (similar to nuclear waste), requiring very strict tracking and disposal regulations that go far beyond the actual hazard posed by oil and gas drilling waste. The CLEANER bill is unnecessary and its purpose is to make drilling uneconomic–i.e. to stop it.
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Hydraulic Fracturing | Industrywide Issues | Research

USGS: Consider Disposing Nuclear Waste in…Shale?!
July 25, 2013July 25, 2013

This is truly rich. While anti-drillers prattle on about how a few gallons of chemicals a mile down in the earth will magically defy gravity and climb uphill through a mile of solid rock to contaminate water supplies (yeah, it NEVER happens), the scientists at the U.S. Geological Survey have written a research paper that says shale is so secure, we ought to consider using it to dispose of spent nuclear waste–stuff that hangs around for millions of years!

You read the above statement correctly. Scientists at the USGS have just published a paper titled “Can Shale Safely Host U.S. Nuclear Waste?” in EOS, a journal by the American Geophysical Union (full copy embedded below). The conclusion of their investigation into whether or not nuclear waste could be disposed of in shale: “Although shales and similar rocks have not been considered for hosting nuclear waste in the United States, recent research points to them as a very promising option.” Note to emergency rooms throughout the Southern Tier of NY: Prepare to receive large numbers of apoplectic anti-drillers when they read about this…
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Energy Companies | Energy Services | Ethane | Industrywide Issues | MarkWest Energy | NGLs | Pipelines | Processing Plants | Range Resources Corp | Sunoco Logistics

Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant
July 25, 2013July 25, 2013

Every now and again you come across a big, fat gold nugget of news in a press release. That happened for MDN today when we read yesterday’s press release from Range Resources, innocently announcing their second quarter 2013 results (see today’s story about Range). The gold nugget? Range reports that on July 21st their first deliveries of ethane via the Mariner West pipeline were made to Sarnia, Ontario, Canada. This is the first time ethane has made it to a processing (cracker) plant.

The little nugget of gold from Range, the only Marcellus driller (so far) to sell ethane…
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Accidents | Energy Services | Enterprise Products Partners | Industrywide Issues | Muskingum County | Ohio | Pipelines

Pipeline Construction Run-Off Hits Local Creek, Muskingum River
July 25, 2013July 25, 2013

A minor incident–but an incident nonetheless. As part of digging and drilling to lay pipeline for the ATEX Express ethane pipeline that will run from western PA through OH and all the way to the Gulf Coast, heavy rainwater has been washing through the dug up dirt and rock at one of the construction locations in eastern Ohio, running off into the Wakatomika Creek (Muskingum County), which in turn empties into the Muskingum River. The rainwater/mud mix is not toxic, but it does have the potential to affect fish and aquatic life along the creek and the river…
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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Speakers at JLCNY 5-Year Moratorium Event Take Aim at Gov Cuomo
July 24, 2013July 24, 2013

Yesterday marked the very sad and tragic five-year anniversary of no shale drilling in New York State. The moratorium, first instituted by then-Gov. David Paterson in 2008, has increasingly frustrated the 77,000 members of the Joint Landowners Coalition of New York (JLCNY). The JLCNY and New York elected representatives made their collective displeasure with the ongoing moratorium known at a rally yesterday in Binghamton, NY. Addressing a packed room of some 150 drilling supporters, the JLCNY’s attorney Scott Kurkoski gave a stirring speech, followed by a number of elected state and local officials. Each of them took direct aim at Gov. Andrew Cuomo, telling him “it’s been long enough” and “it’s time to move forward.” Watch a video of the speeches below (22 minutes long), courtesy WIVT/WBGH News Channel 34.

The JLCNY also released the following statement yesterday:
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Hydraulic Fracturing | Industrywide Issues | New York | Public Opinion | Statewide NY

The One Fracking Poll Gov Cuomo *Should* Be Worried About
July 24, 2013July 24, 2013

MDN subscriber and friend Ken Kamlet, an attorney with one of Binghamton’s premier law firms–Hinman, Howard & Kattell (HHK), recently wrote an article for the HHK legal blog that takes a close look at public polling in New York State on the issue of shale drilling and fracking. It’s a marvelous article, both in depth and breadth, providing superb insights into what New Yorkers think about the drilling issue (we recommend you read the whole article).

In Ken’s conclusion, he hits on the one public poll that should matter the most to NY Gov. Andrew Cuomo. And no, it’s not how many New Yorkers are for or against fracking and shale drilling. The poll that Cuomo should pay attention to is the one that shows a convincing majority of New Yorkers on both sides of the drilling issue believe Cuomo is “dragging his feet” on the drilling issue. Rather than being perceived as careful and deliberative on the drilling issue, he is instead perceived as weak and ineffective, lacking leadership–not good qualities for someone who seeks higher office…
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