Industrywide Issues

Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Seneca Resources | Statewide PA

PA Enviro Groups Oppose Using Acid Mine Water for Fracking
March 18, 2013March 18, 2013

The Pennsylvania Dept. of Environmental Protection and elected officials want Marcellus drillers to help them with a big problem in the state: acid mine drainage. To solve two “problems” at once—lessen the amount of acid mine water that drains into PA waterways and supply water for fracking—PA encourages drillers to use acid mine water with the Environmental Good Samaritan Act and with a Consent Order and Agreement (see PA Wants Drillers to Use Acid Mine Water in Fracking – Will They?). PA’s efforts have started to pay off. Seneca Resources and at least 10 other drillers have started to use acid mine water for fracking.

However, just like a bad Western movie, extremist environmental organizations have ridden in to ruin the day. Legislation to encourage more use of acid mine water for fracking was recently introduced by a Democrat (!) Senate member. PennEnvironment and other “environmental activists” have sidelined the legislation…

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

Are Celebrities Breaking NY Law in Anti-Fracking Activities?
March 18, 2013March 18, 2013

Are anti-drilling one-percenters like Yoko Ono, Sean Lennon and Susan Sarandon breaking the law because they haven’t registered as lobbyists in New York State? According to the AP, maybe…

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Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County | Wastewater

Range Gets Violation Notice for Wastewater Spill in SW PA
March 18, 2013March 18, 2013

A very small spill (about 40 barrels, or 1,680 gallons) of recycled fracking water with no chemical additives in it was spilled in Cross Creek County Park (Washington County), PA on Feb. 12 by Range Resources. The state Dept. of Environmental Protection has issued Range a notice of violation and is investigating…

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Economic Impact | Exporting | Industrywide Issues | Jobs | Ohio | Statewide OH

OH Congressmen Form LNG Working Group to Encourage Exports
March 18, 2013March 18, 2013

Ohio Congressman Tim Ryan announced last week that he and Ohio Congressman Bill Johnson have founded the “Liquefied Natural Gas (LNG) Export Working Group” for the 113th Congress. The purpose of the group is to encourage the Obama administration (specifically the Dept. of Energy) to get off it’s collective rear-end and start approving some of the many requests for permits to export natural gas.

Congressman Ryan’s press announcement:

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Broome County | Chenango County | Hydraulic Fracturing | Industrywide Issues | New York | Research

USGS: Best Places in NY Southern Tier to Get Water for Fracking
March 15, 2013March 15, 2013

The U.S. Geological Survey (USGS) has identified three large-scale groundwater supply sources along the Susquehanna River in Broome and Chenango counties (New York State) in an announcement about a newly completed study (full copy of the study is embedded below). The USGS says these three potential groundwater supply locations are in areas where there may be future shale gas drilling activities.

Essentially, the USGS has provided the drilling industry and regulators at the DEC and SRBC with a helpful “best places to get water for fracking” guide…

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Carroll County | Forced Pooling | Industrywide Issues | Ohio | Statewide OH

2nd Forced Pooling Order in OH Utica, Landowner Gets No Bonus
March 15, 2013March 15, 2013

For the second time since the Utica Shale drilling boom began, the Ohio Dept. of Natural Resources (ODNR) Division of Oil and Gas Resources Management (DOGRM) has issued a forced pooling order (in Carroll County). In Ohio it’s called a “unitization order.” No matter what you call it, it means that the driller—Chesapeake Energy—will be allowed to drill under someone’s property that doesn’t want it because a majority of the surrounding property (88% in this case) is leased and the property in question is needed to complete a drilling unit.

Not only is this news because it’s only the second unitization order issued for Utica Shale drilling, it’s news because in this case DOGRM is not forcing Chesapeake to pay a leasing bonus to the reluctant landowner—a change from the first unitization order:

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Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Ohio County | Wastewater | West Virginia

GreenHunter Buys Barge Terminal in Wheeling for Frack Wastewater
March 15, 2013March 15, 2013

Yesterday, GreenHunter Water announced they have purchased a 10.8 acre barge terminal site in Wheeling, WV that sits along the Ohio River. GreenHunter plans to convert the former gasoline storage facility into a shale wastewater handling and storage facility that will recycle wastewater so drillers can reuse it, or ship it by barge to other locations (like injection wells) for disposal. The GreenHunter announcement raises a number of questions and observations. MDN will add its analysis below.

First, the announcement from GreenHunter issued yesterday:

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Commodity Price | Electrical Generation | Industrywide Issues

NatGas Prices Inching Higher, $4 Mcf This Summer?
March 15, 2013March 15, 2013

This is not a story about the Marcellus/Utica per se, but it has a direct bearing on landowners (how big their royalty checks are) and the drilling industry (whether or not they’re willing to sink a hole) in Appalachia.

The enormous success of the shale drilling industry has been its own worst enemy in one respect: Demand for natural gas as not kept pace with the enormous flood of new supplies, and that has led to a commodity price “collapse” since 2011. Even though domestic supplies of natural gas are now at an all-time high, prices are once again inching up and it’s expected the commodity price will hit $4 per thousand cubic feet (Mcf) sometime this year—perhaps this summer. Why? The switch from coal to natgas in electric power generating plants…

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Accidents | Carrizo Oil & Gas | Energy Companies | Industrywide Issues | Pennsylvania | Wyoming County (PA)

Carrizo Problem Fracking NE PA Well, Evacuates 3 Nearby Families
March 15, 2013March 15, 2013

Carrizo Oil & Gas temporarily lost control of a Marcellus Shale gas well they were fracking in Wyoming County, PA on Wednesday. The company was in the 23rd stage Wednesday about 6:00 pm when wastewater and brine started to flow at a rate of about 800 gallons per minute—too fast to control. The concern was that natural gas (methane) would start pouring out of the hole too, so Carrizo and a specialty well control crew worked through the night and by early Thursday had the problem contained, and by Thursday afternoon they had the well capped. No methane was released into the atmosphere and the wastewater was contained.

During the episode three families that lived within 1,500 feet of the well were evacuated as a precaution. They returned on Thursday. Here’s the details about the accident as we know them:

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Beck Energy | Belmont County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | XTO

XTO, Beck Energy Appeal OH Case Allowing Lease Termination
March 15, 2013March 15, 2013

Earlier this week MDN told you about 600-700 landowners in Ohio who won a lawsuit allowing them to terminate leases held with Beck Energy and XTO Energy (see OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases).

Beck and XTO are none too happy with the decision and have appealed it to the Ohio Court of Appeals:

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Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA | Supply Chain

Marcellus Supply Chain: How Credit Union Targets PA Shale Workers
March 15, 2013March 15, 2013

MDN always marvels at the innovative ways businesses figure out how to market and do business in the Marcellus and Utica Shale drilling industry. Often referred to as “the supply chain,” businesses doing business in the shale industry is an often overlooked success story. We often hear about restaurants and hotels seeing a large increase in business, but numerous other businesses also benefit. Case in point: Utilities Employees Credit Union.

UECU has begun new marketing strategies to attract customers from those working in the Pennsylvania Marcellus Shale industry. Here’s their strategies to increase business from the Marcellus:

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Columbia Pipeline Group | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

Columbia’s SE PA Pipeline Project Includes Compressor Upgrade
March 15, 2013March 15, 2013

Columbia Gas Transmission, a subsidiary of Nisource, has applied to the Federal Energy Regulatory Commission (FERC) to add 16 miles of new pipeline in southeastern PA and NJ to help fire a natural gas-fired electricity generating plant with cheap Marcellus Shale gas. As part of that project, Columbia is upgrading a compressor station in Forks Township (Northampton County), PA. The interesting thing about the upgrade? The compressor station’s next door neighbors don’t mind at all…

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

JLCNY Issues Update, Begins Fundraising to Finance NY Lawsuit
March 14, 2013March 14, 2013

The Joint Landowners Coalition of New York (JLCNY), an organization representing 77,000 landowners with over 1 million acres, issued an extensive update late yesterday on: the status of their lawsuit (which is proceeding); their need for fundraising to finance the lawsuit; and the rationale/strategy for the lawsuit. Even though recent comments by Gov. Cuomo offer a “tease” that he may soon approve fracking, the JLCNY says it’s moving forward with the lawsuit anyway, essentially telling Cuomo “we’ll believe it when we see it.”

Landowners in NY have had too many broken promises and too much double-speak from Albany politicians (see NY Assemblywoman Donna Lupardo: Fracking Friend or Foe?). Through the JLCNY, landowners are now acting to protect their Constitutional property rights. It seems Cuomo, Lupardo and other Democrats have miscalculated when it comes to NY landowners and they will now pay the political and economic price. Here’s the entire update from the JLCNY, worth the read:

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Allegheny County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

PA Town First to Try Regulating Pipelines – Will Ordinance Stand?
March 14, 2013March 14, 2013

On Monday, supervisors for Forward Township (Allegheny County), PA unanimously approved what is believed to be the first (and perhaps an illegal) zoning ordinance targeting and extensively regulating both gathering and transmission pipelines in the township. Sunoco is building a low-pressure liquid-gas transmission pipeline from a processing plant in Houston, Washington County that passes through about 275 properties in Forward to a distribution point in Delmont, Westmoreland County.

The town solicitor has said existing pipelines are not affected by the new ordinance. Problem is, interstate transmission lines are regulated by the federal government, and smaller gathering pipelines are regulated by the state. Pipelines are not regulated by municipalities. A lawyer at Babst Calland makes this observation on the ShaleEnergyLawBlog.com:

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

Bloomberg Tries to Stir-up NY over Compulsory Integration Issue
March 14, 2013March 14, 2013

Mainstream media sources, like Bloomberg, often tip their hand as to which way they think the wind is blowing on an issue. You just have to take time to observe. For example, someone at Bloomberg believes New York Gov. Andrew Cuomo is about to decide in favor of fracking. How do we know they think that? Because they run hit pieces that try to scare readers as a tactic to “stir-up the natives” so they’ll make noise.

The latest stir-up-the-natives-against-fracking hit piece from Bloomberg is on the topic of compulsory integration. If 60% of your neighbors sign a lease in New York, and fracking is allowed, and if your property is in a drilling unit (640 acres or one square mile), your land may be included in the fracking operation. Nothing would be built on top of your land, but drilling may be done under it—a mile or more down—even if you don’t want it. Bloomberg found an anti-driller—someone who has bought the lies from the anti-drilling left hook, line and sinker—and they’ve milked it (or should we say slaughtered it) for all it’s worth…

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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Zeits Takes A Closer Look at the Bluegrass NGL Pipeline
March 14, 2013March 14, 2013

Energy analyst Richard Zeits, writing on the Seeking Alpha website, turns his attention to the recently announced Bluegrass Pipeline which will transport natural gas liquids (NGLs) from the Marcellus/Utica region to the Gulf Coast for processing (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline for background and MDN’s analysis). Zeits begins his deep dive on the Bluegrass (and the wider issue of NGLs) this way:

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