Industrywide Issues

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

NY Health Experts Completed Fracking Review >1 Month Ago
February 11, 2013February 11, 2013

This is the week New York landowners will know of Gov. Cuomo’s decision, one way or the other, about whether or not he will allow fracking to proceed in New York. In a big way, this week will determine Cuomo’s future on the national political stage. He (laughingly) thinks he has a shot a running for president in 2016. Let’s not burst his bubble at the moment.

Part of the potential setup to further delay fracking (which is really a decision by the gov to kill it) is to say “we’re waiting for the results of a health review” and blame the delay on three consultants who were hired to conduct a review of the DEC’s work in regard to fracking’s potential impacts on “public health,” whatever that is. It has just come to light those three outside experts turned in their homework more than a month ago, but DEC Commissioner Joe Martens and NYS Health Commissioner Nirav Shah have cagily concealed that little fact in statements given at recent public hearings:

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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Anti-Drillers Claim DEP Discriminates Against Poor, Minorities
February 11, 2013February 11, 2013

Anti-drillers in Pennsylvania, including the anti-drilling organization PennFuture, claim that the state Dept. of Environment Protection (DEP) is discriminating against the poor and minorities that live in certain communities because it doesn’t give them “enhanced notification” about Marcellus Shale drilling permits issued in those communities. It’s just the latest in a string of desperate attempts by anti-drillers to slow or shut down the miracle of hydraulic fracturing in PA.

This latest fabricated “crisis” has to do with the nonsensical, gobbledygook concept of “environmental justice communities”…

Read More “PA Anti-Drillers Claim DEP Discriminates Against Poor, Minorities”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Libs Renew Call for Severance Tax, O&G Industry Pushes Back
February 11, 2013February 11, 2013

Liberals everywhere believe that high taxes and massive spending will cure all of society’s ills. Well, they actually don’t believe that, but they do get intoxicated on the power that comes from spending other people’s money—and it tends to keep them in power when they spend enough of it on people who didn’t earn it and won’t work for it.

Such is the situation in Pennsylvania. The new “impact fee” on oil and gas drilling in the state—which is really a tax—is not even five months old, and already the libs (i.e. Democrats) are calling for a new severance tax on oil and gas drilling. The Pennsylvania Oil & Gas Association is pushing back:

Read More “PA Libs Renew Call for Severance Tax, O&G Industry Pushes Back”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

1984 PA Oil & Gas Act Rewrite Delayed but Still Coming
February 11, 2013February 11, 2013

In February 2012, Pennsylvania state lawmakers adopted new shale drilling regulations called Act 13. MDN reported several months later, in August 2012, that Act 13 “didn’t do the whole job” and written into the Act 13 law itself was a requirement that the state’s 1984 oil and gas law undergo a complete regulatory rewrite (see Rewrite of 1984 PA Oil and Gas Act Underway). At that time (in August), the five-member Oil and Gas Technical Advisory Board issued 23 pages of proposed changes to the 1984 law and said they planned to have the rewrite done and dusted by December 2012.

It’s February 2013 and the 23-page draft has now grown to be 73 pages, and the original December deadline for completing the rewrite has now turned into “next winter.” However, progress is being made on what one board member calls a “big deal”…

Read More “1984 PA Oil & Gas Act Rewrite Delayed but Still Coming”
Broome County | Hydraulic Fracturing | Industrywide Issues | Jobs | New York | Regulation

Binghamton Area Union Members Rally to Support Fracking
February 11, 2013February 11, 2013

Some 125 union members gathered in Binghamton last Thursday at a rally to support shale gas drilling and the enormous number of jobs it would bring to New York State if Gov. Cuomo green lights fracking:

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Broome County | Hydraulic Fracturing | Industrywide Issues | New York

Join MDN at FrackNation Screening in Binghamton on Feb. 10 [Free]
February 8, 2013February 8, 2013

A quick reminder that in spite of the impending snow storm which will be cleaned up by sometime Saturday, MDN editor Jim Willis will attend the 2pm Sunday, Feb. 10 screening of Phelim McAleer’s new documentary FrackNation at Regal Cinemas Binghamton 12 on Front Street in Binghamton. Phelim will be there! We’d like you to come along and watch it too (free). Here are the details:

Read More “Join MDN at FrackNation Screening in Binghamton on Feb. 10 [Free]”
Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down
February 8, 2013February 8, 2013

Yesterday MDN told you about the (likely) criminal act by Hardrock Excavating, a Youngstown, OH company owned by D&L Energy, when it dumped up to 50,000 gallons of fracking wastewater down a storm drain (see OH Company Dumps 50K Gal of Fracking Wastewater in Storm Drain). The fallout from that act continues. Yesterday the Ohio Dept. of Natural Resources (ODNR) revoked all operating permits—permanently—for both Hardrock Excavating and D&L Energy. Ouch.

D&L says it may appeal the ODNR decision to permanently shut them down…

Read More “OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down”
Energy Companies | Energy Corporation of America | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Federal Judge Upholds Split Decision in PA Royalty Case
February 8, 2013February 8, 2013

A group of landowners who signed leases in western Pennsylvania with Energy Corporation of America (ECA) filed a lawsuit in June 2012 (Pollock, et al v Energy Corporation of America) alleging ECA improperly deducted certain expenses, and didn’t include certain revenues, when calculating and paying royalties. At the time, ECA counter-sued asking for summary judgment that the way they calculate royalties and revenues is OK according to accepted practice and previous court rulings.

Last fall Magistrate Judge Robert Mitchell “partially granted and partially denied” the summary judgment request from ECA. It was mostly a victory for ECA because it dismissed all but one of the charges by the landowners. The case was appealed by both sides to federal court and on Jan. 24, Judge Joy Flowers Conti of the Western District of Pennsylvania said Judge Mitchell’s interpretation of the case is correct. She upheld his decision. This is an instructive case for both landowners and drillers, and a caution to be sure the lease you sign spells out in minute detail how royalties will be calculated…

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Economic Impact | Electrical Generation | Industrywide Issues | Lawrence County | Pennsylvania

NW PA Town Approves Site for Marcellus-powered Electric Plant
February 8, 2013February 8, 2013

North Beaver (Lawrence County), PA supervisors have approved a request from LS Power Development to build a new $750 million electric generating plant at a former manufacturing site along the Mahoning River. The new 900-megawatt plant, when built, will be powered by Marcellus Shale natural gas. Current plans call for the new plant to be online by 2016.

More details:

Read More “NW PA Town Approves Site for Marcellus-powered Electric Plant”
Beck Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Ohio | Regulation | Summit County

OH Appeals Court Strikes Down Home Rule for Drilling
February 7, 2013February 7, 2013

In 2012, Beck Energy Corp. got a permit from the OH Dept. of Natural Resources (ODNR) to drill on property located in the City of Munroe Falls (Summit County), OH. Beck started drilling and the city slapped a Stop Work Order on them and took them to court, saying Beck was not in compliance with a number of local ordinances and necessary permits. The local trial court supported Munroe Falls’ position and ruled in their favor.

Beck appealed the trial court decision to the Ohio Court of Appeals (Ninth District) and in a decision handed down yesterday, the appellate court sided with Beck and against so-called “home rule” when it comes to oil and gas drilling. The Ninth District instructed the lower court to reverse its opinion. This decision (full copy embedded below) has major consequences for both Utica Shale drillers and municipalities throughout the state…

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Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

OH Company Dumps 50K Gal of Fracking Wastewater in Storm Drain
February 7, 2013February 7, 2013

The Youngstown Vindicator is reporting that a Youngstown company, Hardrock Excavating, intentionally dumped 40,000-50,000 gallons of fracking wastewater down a storm drain and eventually ended up in the Mahoning River.

To say people are “outraged” doesn’t even begin to capture the emotion over this incident:

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Hydraulic Fracturing | Industrywide Issues | Regulation

Obama Picks REI CEO to Head Dept. of Interior
February 7, 2013February 7, 2013

President Obama has picked Sally Jewell, a “conservation advocate” and the CEO of outdoor retailer Recreational Equipment Inc. (REI) to be his next secretary for the Dept. of Interior, filling the post that Ken Salazar is vacating. The DOI and its Bureau of Land Management have developed new rules for hydraulic fracturing on federal lands that Obama “hopes” may serve as a “template” for fracking on private land (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking). The new BLM rules generated a lot of controversy in 2012 and Salazar and the DOI backed off implementing them until a rewrite is completed.

Jewell, if confirmed, will enter the battle over hydraulic fracturing and whether or not the federal government has a role to play in it (MDN and the U.S. Constitution says the feds don’t have a role). The extremist environmental organization Sierra Club likes Jewell, which is a huge red flag. However, she did once work for Mobil Oil (now Exxon Mobil)—for a few years just out of college.

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

NY’s Anti-Drillers Attempt Smear of Geologists Consulting for DEC
February 7, 2013February 7, 2013

How does one convey the lunacy of the anti-drilling position in New York State? Latest example: The NY Dept. of Environment Conservation (DEC) has hired two geologists as consultants to evaluate earthquake risks associated with fracking (yes we know, there is no earthquake risk, but humor us for a bit). In a coordinated attack, anti-drillers say that because the two geologists have also done consulting assignments for nasty, evil drilling companies, they’re tainted. Damaged goods. Shills and tools of the drilling industry. Not to be trusted. Even though they’ve also done consulting work for environmentalist (anti-drilling) organizations. Doesn’t matter.

Such is how far anti-drillers have sunk in their campaign of smears and lies to try and prevent the miracle of hydraulic fracturing—which is already being done in NY in vertical conventional wells and has been for decades—from happening in the state for horizontal shale wells too.

Read More “NY’s Anti-Drillers Attempt Smear of Geologists Consulting for DEC”
Huntingdon County (PA) | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Supply Chain

Small Business Startup to Furnish PA Drillers with Act 9 Signs
February 7, 2013February 7, 2013

MDN loves small business—we would argue they are the backbone of job creation in this country. Score another victory for a small business that picked up on a supply chain opportunity—an opportunity to provide a product or service to the shale drilling industry. In February 2012, the Pennsylvania legislature passed a new law called Act 9. Similar to Act 13, Act 9 deals with regulating Marcellus and Utica Shale drilling in PA. Act 9’s purpose? Make well pad drill sites safer. Part of Act 9 requires drillers to post new signage with safety information at the entrance of each drill site (example below).

Enter a new small business: Unconventional Well Pad Signs. Located near Altoona, PA, Unconventional Well Pad Signs is a division of another company—HomeWaters Retreats. HomeWaters, which provides vacation retreats and camps, is a business completely unrelated to manufacturing or any of the types of businesses you normally associate with providing products and services to the drilling industry. Gotta love small business entrepreneurs…

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Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH | Tennessee Gas Pipeline | Utica Shale

TGP Seeks to Convert Pipeline into Utica Wet Gas Gathering Line
February 7, 2013February 7, 2013

The Tennessee Gas Pipeline Co. recent made a filing with the Federal Energy Regulatory Commission (FERC) declaring its intention to convert an existing “lean gas” pipeline in the Ohio Utica Shale into a gathering pipeline to move wet gas from the Utica to market. TGP is getting a lot of pushback from existing pipeline customers that would be affected by the change:

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Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

Details of OH Gov. Kasich’s Utica Shale Severance Tax Hike
February 6, 2013February 6, 2013

Ohio Gov. John Kasich released his budget for fiscal years 2014 & 2015 yesterday, and along with it, he resurrected the same plan he first introduced a year ago to increase severance tax on oil and gas production in the Utica Shale (see Details on Ohio Gov. Kasich’s New Tax on Shale Drilling). The plan in a nutshell: Hike the severance tax on Utica Shale drilling, then spread the new-found wealth around to buy votes to get re-elected.

Here’s a summary of the coming changes (and make no mistake, the plan will pass this time):

Read More “Details of OH Gov. Kasich’s Utica Shale Severance Tax Hike”