Industrywide Issues

Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Anti-Drillers Attempt a Brave Face with NY Appeals Court Decision
August 30, 2013August 30, 2013

MDN was one of the first news/blog sites yesterday to break the news that the New York Court of Appeals has decided to hear the Dryden and Middlefield appeals. This is the best possible news landowners could receive (see BREAKING: NY Court of Appeals will Hear Dryden/Middlefield Case). As promised, below is MDN’s explanation of why we believe the Court of Appeals decision is the single most positive development NY landowners have had in several years (not hyperbole!).

However, before our analysis, some background on yesterday’s decision as given by an objective news source (the Wall Street Journal) and by a not-so-objective news source (the Albany Times Union)…
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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

RINO NY Sen Greg Ball Comes Out in Favor of Fracking…Sort of
August 30, 2013

Anti-drilling New York State Sen. Greg Ball (a Republican-In-Name-Only from Putnam County), perhaps sensing his next election prospects slipping away, has had a conversion of sorts to becoming a teeny, tiny little bit pro-drilling. In January 2012, Ball introduced a bill that would extend New York’s fracking moratorium until June 1st of this year (Bill to Extend Fracking Moratorium until 2013 Hits NY Senate). Obviously the law didn’t pass and wasn’t even needed. However, it showed the true colors of Greg Ball. Now he’s “seen the light,” supposedly…

Ball “came out” yesterday with an editorial published on his website and picked up by several media outlets. Here is his explanation for his change of heart and new-found, lukewarm, conditional support for fracking in NY:
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Allegheny County | CONSOL Energy | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

NIMBY Town to Provide Water for Fracking at Pittsburgh Airport
August 30, 2013August 30, 2013

Two towns located near the Pittsburgh Airport are set to make big money from the drilling that will happen at the airport–even though the drilling is not within their own boundaries. How? They’re going to sell water to CONSOL Energy to be used for fracking 47 wells at the airport–up to 300 million gallons of water.

One of the towns selling water, Findlay, recently approved three new shale wells in the town–the first three to be drilled there (see Findlay Twp, PA Approves First 3 Marcellus Wells, Range to Drill). Findlay’s approval of Marcellus wells indicates they are favorable to shale drilling. The second town that will sell water for fracking at the airport, Moon Township, is not so favorable toward fracking. Last December the Moon Board of Supervisors voted to ban drilling in 75% of the their town (see Moon Twp, PA Votes to Ban Fracking in 75% of the Town). We find it interesting that a town that leans against drilling is willing to sell water for drilling–as long as the drilling is not in their backyard…

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Norse Energy 2Q13: Concerned About Remaining ‘a Going Concern’
August 30, 2013August 30, 2013

MDN told you a few days ago about the sad state of affairs at Norse Energy (see Norse Can’t Dump NY Leases at Auction, Creditors Get Ready to Sue). The company released their second quarter update today (full copy embedded below). The update is based on the assumption the company will remain “a going concern.” They state that if they can’t sell their 130,000 acres of New York leases at a decent price, they’ll have to turn the lights off and walk away. The company is currently under bankruptcy protection and has been ordered to sell their last remaining asset–the leases.

One item from the 2Q13 update that caught our attention is that a group of approximately 60 landowners with a collective 6,000 acres are suing Norse to end their leases. Norse had invoked force majeure on the leases–a legal maneuver that states, roughly, “due to a circumstance beyond our control we’re extending the original lease term.” Of course the unforeseen circumstance is the now 5+ year moratorium on drilling in New York. If Norse starts losing already-signed leases left and right, they’ll have no assets left to sell at auction, so they are vigorously fighting the action by the landowners…
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Economic Impact | Ethane | Industrywide Issues | Processing Plants | West Virginia | Wood County

Wood County, WV “Still in the Running” for a Cracker Plant
August 30, 2013August 30, 2013

West Virginia continues to make noise about an ethane cracker plant for the state, even though Shell is looking to build one in Pennsylvania. Earlier this week WV Gov. Earl Ray Tomblin was once again talking up a cracker for WV (see WV Gov. Tomblin Beats the Ethane Cracker Drum Once Again).

Now, another WV voice has joined the cracker chorus. Wood County, WV says they have a site under serious consideration by an unnamed company as a possible location for a $3 billion ethane cracker plant. According to a Wood official, they’re “definitely still in the running”…
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Energy Services | Industrywide Issues | Marshall County | NiSource | Pipelines | West Virginia

NiSource Installs 4 New Engines at Majorsville, WV Compressor Stn
August 30, 2013August 30, 2013

The natural gas compressor station located in Majorsville (Marshall County), WV has just received a major upgrade according to owner NiSource. Four really old (1956!) engines were replaced with four brand new CAT 3606 engines, which will increase throughput on the pipeline by 70-80 million cubic feet per day.

The NiSource announcement:
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Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

BREAKING: NY Court of Appeals will Hear Dryden/Middlefield Case
August 29, 2013August 29, 2013

Important and breaking news as MDN gets published… The New York Court of Appeals (our state’s highest court) has decided to review a lower court ruling on the Dryden and Middlefield cases in which townships banned shale drilling and fracking for everyone in the town. This is fantastic news for New York landowners. We will have more analysis tomorrow. In the meantime, here’s a statement issued by the Joint Landowners Coalition of New York:
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BP | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Trumbull County | Utica Shale

Utica Drilling Innovation: Plastic Pipelines Replace Water Trucks
August 29, 2013August 29, 2013

An interesting innovation that we have not heard of before: BP is using temporary, plastic pipelines to transport water to the test wells they’re drilling in Trumbull County, OH. When a series of wells are finished being drilled, the pipes can be rolled up and used somewhere else without having to dig a trench and leave a permanent pipeline underground. No more thousands of trips by water trucks to drill a well!

Could this be the start of yet another new, environmentally-friendly innovation by the shale drilling industry?…
Read More “Utica Drilling Innovation: Plastic Pipelines Replace Water Trucks”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia

WV Gov. Tomblin Beats the Ethane Cracker Drum Once Again
August 29, 2013August 29, 2013

At a business summit yesterday at the Greenbrier Resort in West Virginia, Gov. Earl Ray Tomblin once again voiced his opinion that WV will have an ethane cracker plant of its own in the near future and that such a plant is needed to keep jobs in WV. He went a bit further than we’ve heard before and said WV has the right to expect a partnership between drillers and manufacturers to process WV ethane and other natural gas liquids (NGLs) in WV. According to Tomblin, his administration is burning the midnight oil to make a WV ethane cracker a reality…
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Access Midstream Partners | Chief Oil & Gas | Electrical Generation | Energy Companies | Energy Services | Industrywide Issues | Pennsylvania | PVR Midstream | Statewide PA

Chief Strikes Deal to Provide Marcellus Gas for Electric Plants
August 29, 2013August 29, 2013

Chief Oil & Gas announced yesterday they have crafted a deal to supply some of the Marcellus Shale gas they produce in PA to IMG Midstream. You may think IMG is a pipeline company because of the word “midstream” in its name–but you would be wrong. IMG Midstream (formerly known as Iron Mountain Generation) develops, owns, and operates small-scale electric generation plants powered by natural gas. As part of the new deal, Chief will use pipelines from Access Midstream and PVR Midstream to get the gas from their wells to IMG’s new electric plants (to be built) in northeastern PA.

With that explanation to clear up who the players are, here’s the (somewhat confusing) press release announcing the deal…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Pennsylvania | Regulation | Statewide NY | Susquehanna County

What Did NYC Lawmakers Find when Visiting NE PA Frack Sites?
August 29, 2013August 29, 2013

A small group of anti-drilling New York State lawmakers from Westchester County and New York City came to Susquehanna County, PA yesterday for a “tour” of one of the most drilled (and productive) natural gas counties in PA. We’re guessing local anti-drilling celebrity (and potty mouth) Vera Scroggins led the tour, although we don’t know for sure. Regardless of who led it, the aim was to show the devastation fracking hath wrought to this poor, defenseless county. Unfortunately for Vera and other anti-drillers, reality trumps their hallucinations.

MDN was not along for the so-called tour, but we know what the visiting city folks found because we’ve also toured the county and its drilling sites: They found a pretty, rural county where the people are happy and employed, (some of them newly rich, which disgusts the old rich of NYC), and where there is no industrial wasteland. Sometimes trucks clog the roadways–but nothing like the traffic the visiting downstate lawmakers experience every day of their lives…
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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Announces “Open Season” for Potential PA Ethane Cracker
August 28, 2013August 28, 2013

Time for Shell to get serious about whether or not they plan to build a $2 billion ethane cracker plant in Monaca, PA. Shell announced yesterday they will have something akin to a pipeline open season, a period of time when drillers can bid on capacity to send the plant (should it be built) their locally-produced ethane supplies. The bidding period will run from August 27 through October 4 and will give Shell a good idea of just how much ethane will be available for them to “crack” at the plant.

Shell reports they already have commitments from CONSOL Energy, Noble Energy, Seneca Resources and Hilcorp Energy should they decide to build the cracker. Shell is still about a year away from a final final final final decision (see our June 2012 story – Shell: Final Decision on Cracker Plant Still 18-24 Mo. Away). The next few months are likely to be crucial to that decision…
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Health Impacts | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Is Cuomo Buying Off Health Commissioner to Delay Fracking Report?
August 28, 2013August 28, 2013

It’s now apparent to everyone that NY Gov. Andrew “Ditherer” Cuomo is using State Health Commissioner Nirav Shah as his excuse to delay making a decision about whether or not to allow fracking in the state. What’s Shah been up to? Going on junkets–trips where he supposedly confers with people knowledgeable about fracking in other states (and countries). For what? He can’t pick up the phone and call? Doesn’t he have email (or a physical mailing address) so people can send him information? Does he need to be face-to-face so he can look in their eyes to be double-dog sure they’re telling him the truth?

Sure sounds to us like Shah is being bought off with all-expenses paid vacations (averaging about one a month) from Prince Andrew in return for being the whipping boy. Here’s the timeline of Shah’s junkets…
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Energy Companies | Industrywide Issues | Litigation | New York | Norse Energy | Statewide NY

Norse Can’t Dump NY Leases at Auction, Creditors Get Ready to Sue
August 28, 2013August 30, 2013

Norse Energy, the little energy that ultimately couldn’t (drill, because of Andrew Cuomo), bet big on New York State. It was the wrong bet. Norse holds 130,000 acres of leases in New York and literally bet the company’s future on New York’s willingness to allow fracking. The company lost the bet when they went into bankruptcy last year and finally had to put the only assets they had left on the auction block–130K leased acres–earlier this year (see Bankrupt Norse Energy to Sell NY Leases – Who Will Want Them?). As we stated at the time, who would be willing to purchase the Norse leases with a) Cuomo still not decided on whether drilling can happen in NY, and b) the courts still not decided about whether towns can ban drilling. Our answer: no one will be willing.

Norse has confirmed our logical deduction. The company issued a short statement yesterday stating they received a few low-ball bids for the leases, but the bid amounts are not near enough to satisfy creditors left holding the bag. Those creditors are now looking at filing lawsuits against Norse and its management…
Read More “Norse Can’t Dump NY Leases at Auction, Creditors Get Ready to Sue”
Allegheny County | CONSOL Energy | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport
August 28, 2013August 28, 2013

CONSOL Energy and Pittsburgh Airport officials held a joint press conference yesterday to share more of the details for CONSOL’s plan to drill on airport-owned property. You may recall the airport authority signed a deal with CONSOL in February of this year, netting the airport a nifty check for $50 million as the signing bonus (see $50M Check in the Mail: Pittsburgh Airport Lease a Done Deal). However, the signing bonus is just an hors d’oeuvre. All done and told–after receiving royalties for years to come–the airport expects the project to bring in a staggering $1 billion or more.

The proposed drilling plan (see the map below) calls for 6 well pads, 47 Marcellus Shale wells on those pads (with the possibility of drilling Upper Devonian wells later on), three fresh water ponds (“impoundments”) and 17 miles of gathering pipelines. CONSOL said that seismic testing in and around the airport property will begin in late October of this year, however, the first test wells will not be drilled until third quarter of 2014…
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Industrywide Issues | Pennsylvania | Research | Statewide PA

Anti-Drillers Smear PA DEP Over Delayed Global Warming Report
August 28, 2013August 28, 2013

A Pennsylvania state report on the impacts of the mythical concept of human-induced global warming on residents of the state is a year and a half late. Boo hoo. Big deal. Aren’t there enough of these kinds of “reports” circulating already? Why is another one needed? Apparently anti-drillers in PA and at the NPR reporters at StateImpact Pennsylvania want to see it published. They also want it to contain a reference to the totally debunked and discredited “study” by Cornell professors Robert Howarth and Anthony Ingraffea. You know, the study that laughably says burning coal is better for the environment than natural gas. MIT later put that whopper to rest (see New MIT Study on Fugitive Methane Discredits Cornell Study).

But let’s not let real science get in the way here! Anti-drilling groups like PennFuture want Howarth’s discredited “research” to be included in the final report. When someone from the PA DEP dared to say it ought to be removed, well, the antis had a cow. PennFuture went on a fishing expedition and obtained internal emails and drafts of the report and leaked it to sympathetic StateImpact reporters. It’s now time to crucify the DEP official who wanted the holy words of Bobby & Tony removed…
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