Industrywide Issues

Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Did PA DEP Undercount Act 13 Wells & Forfeit $303M in Revenue?
January 10, 2013January 24, 2013

Note: MDN’s headline originally stated “$100M” in revenue was forfeited. The study’s lead author, Joel Gehman, contacted MDN to correct that number. We misunderstood. They believe the DEP has forfeited two to three times that amount: $205-$303 million.

In an attempt to shame the Pennsylvania Dept. of Environmental Protection (DEP) into action to improve their data reporting for unconventional shale wells, researchers at the University of Alberta and McGill University (both in Canada) have published a paper in the journal Environmental Practice claiming the DEP undercounted the number of natural gas wells used for assessing the new Act 13 impact fee, thereby denying the state an extra ~~$100~~ $205-$303 million they could have received in tax revenue (see article below).

The article/study is titled “An Analysis of Unconventional Gas Well Reporting Under Pennsylvania’s Act 13 of 2012” and is peer reviewed, which supposedly blesses it as being accurate. However, the PA DEP strongly objected to the methodology used by the researchers and has said, point blank, they misunderstand the Act 13 requirements for what constitutes an unconventional well under the Act 13 law. DEP says there is no missing tax revenue due to an undercount. The researchers glibly reply the purpose of the article is to needle the DEP into “fixing” their data problem.

Read More “Did PA DEP Undercount Act 13 Wells & Forfeit $303M in Revenue?”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

PA DEP Finalizes Procedure for Using Acid Mine Water in Fracking
January 10, 2013January 10, 2013

For most of 2012 the Pennsylvania Dept. of Environmental Protection (DEP) researched how it might encourage, evaluate and control the use of acid mine drainage water for use in fracking natural gas wells. Such a practice would fix two problems at the same time—clean up acid mine drainage, and provide an abundant source for water to use in fracking. The DEP announced yesterday they have finalized their procedures and have published them in a white paper (see the white paper embedded below).

More than 300 million gallons of water is discharged from mines in PA waterways every day—a really big problem. This initiative is a win/win for the state.

Read More “PA DEP Finalizes Procedure for Using Acid Mine Water in Fracking”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Out-of-Towners Show up at NY State of State Address to Oppose Fracking
January 10, 2013January 10, 2013

Unfortunately MDN editor Jim Willis could not attend the Albany, NY rally yesterday to show support for fracking. Both sides of the debate were out with placards and signs in the state capital in a show of support (or opposition) for the benefit of a single person: Gov. Andrew Cuomo, who delivered his State of the State address. On his way to the Capitol, Cuomo got to see signs and shouts of support/opposition from both sides. What did he see?

Read More “Out-of-Towners Show up at NY State of State Address to Oppose Fracking”
Hydraulic Fracturing | Industrywide Issues | Regulation

Rumor Mill: Who Will Obama Choose to Run EPA?
January 9, 2013January 9, 2013

With the resignation of Lisa Jackson as Administrator of the federal Environmental Protection Agency (EPA)—good riddance!—the speculation now turns to who her replacement will be, and whether or not that replacement will continue her legacy of trying to screw up fossil fuel energy in this country. The rumor mill has begun in earnest over who Obama will select.

Here’s a short list of possible replacements, picked up from a Bloomberg article, along with MDN’s own pick:

Read More “Rumor Mill: Who Will Obama Choose to Run EPA?”
eCORP International | eCORP Stimulation Technologies | Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues

eCORP Tests New Waterless LPG Fracking Method on First Shale Well
January 9, 2013January 9, 2013

Last year MDN told you about a deal in Tioga County, NY between landowners with 135,000 acres and drilling company eCORP to use liquefied petroleum gas (LPG, or propane) fracking as an alternative to water-based fracking. The deal, which had a complicated structure with the landowners as part-owners of the venture, fell apart (see Tioga County, NY Lease Deal with eCORP Falls Apart). One of the interesting aspects of that story is that by using a non-water-based fracking method, eCORP may have been able to proceed with drilling ahead of New York’s much-delayed new fracking regulations. However, that theory never came to a test.

Here’s the new news: eCORP was going to use GASFRAC’s LPG fracking technology in Tioga County. Since that time, a newly formed subsidiary of eCORP called eCORP Stimulation Technologies has developed its own LPG fracking technology that uses 100% propane and zero chemicals or additives of any kind. eCORP fracked the very first shale well with the new technology in December…

Read More “eCORP Tests New Waterless LPG Fracking Method on First Shale Well”
Health Impacts | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY | Uncategorized

NY Assemblyman Try to Stop the Clock on Fracking Comment Period
January 9, 2013January 9, 2013

Three anti-fracking New York Assembly Democrats—all three chairmen of important Assembly committees—sent a letter on Monday (full copy embedded below) to Gov. Andrew Cuomo asking, or rather demanding, that the state Dept. of Environmental Conservation stop the clock on the current 30-day public comment period. Their rationale? An old internal DEC report produced and never released to the public says fracking won’t harm public health. “Wrong answer” is their response—and they intend to make noise about it until they get the “right answer”—which of course (for them) is that fracking does harm public health.

Read More “NY Assemblyman Try to Stop the Clock on Fracking Comment Period”
Commodity Price | Industrywide Issues | Pennsylvania | Research | Statewide PA | Statewide WV | West Virginia

Marcellus Shale’s Prominent Role in Latest EIA Outlook
January 9, 2013January 9, 2013

Yesterday the U.S. Energy Information Administration (EIA) released their monthly Short-Term Energy Outlook (STEO), which includes the outlook for natural gas. EIA has some of the best and brightest that crunch the numbers, so when they issue their reports, people pay attention. EIA reports are not exactly a crystal ball to predict the future—but they’re darned close.

The Marcellus Shale of Pennsylvania and West Virginia is mentioned prominently in this update, including its predicted role in boosting overall natural gas production this year. Below is the natural gas portion of the STEO, with predictions for prices, production and consumption in 2013:

Read More “Marcellus Shale’s Prominent Role in Latest EIA Outlook”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Landowners Converge on Albany in Show of Support for Fracking
January 9, 2013January 9, 2013

Hundreds of New York State landowners are expected to show up today, Wednesday, Jan. 9, in Albany, NY in a show of support for fracking and shale drilling to Gov. Andrew Cuomo as he delivers his State of the State address. Anti-drillers are expected to make a showing as well.

The 77,000-member Joint Landowners Coalition of New York (JLCNY) released this statement ahead of their rally today:

Read More “NY Landowners Converge on Albany in Show of Support for Fracking”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Politicians Renew Request for Longer Fracking Comment Period
January 8, 2013January 8, 2013

Different day, same old broken tune from Mayors Matt Ryan (Binghamton), Sue Skidmore (Elmira) and an assortment of lefty elected officials, holding offices from mayor to dog catcher, who want to ban fracking.

Yesterday the group Elected Officials to Protect New York (see their website so you know whom to vote against in the next election) issued yet another tiresome nag request at a press conference in Binghamton to Gov. Andrew Cuomo asking him to extend the public comment period on the latest minor revisions to proposed fracking rules from 30 days to 90 days, knowing full well that if he does, it will kill fracking in New York. Thankfully the governor is ignoring the group.

Read More “NY Politicians Renew Request for Longer Fracking Comment Period”
Energy Services | Industrywide Issues | New York | Pipelines | Statewide NY | Transco | Williams

Williams Files with FERC for New Access Point to NYC from Transco Pipeline
January 8, 2013

New York City Mayor Michael Bloomberg has said it’s critical that NYC get more supplies of shale gas—in the near future. New York has new rules going into effect starting in 2015 that will ban certain types of fuel oil, which means all of those apartment buildings will need to be heated with an alternative, and windmills won’t do the job (see Why Mayor Mike Bloomberg Suddenly Loves Fracking).

Williams Partners yesterday filed an application with FERC to provide a new delivery point from their Transco pipeline to provide additional natural gas to NYC—but it involves constructing a new 3.2-mile pipeline (mostly offshore) to make it happen. Welcome to the next flashpoint in the anti-fracking wars…

Read More “Williams Files with FERC for New Access Point to NYC from Transco Pipeline”
Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

MD Commission Finally Makes Recommendations on Shale Drilling
January 8, 2013January 8, 2013

The Maryland Marcellus Shale Advisory Commission, appointed by MD Gov. Martin O’Malley in 2011 to study natural gas drilling and produce a set of best practices for hydraulic fracturing has finally made a series of recommendations for how to regulate shale gas drilling in the state. It took the Commission 15 months to cast their first vote (see MD Fracking Commission Casts First Vote – in 15 Months!), so let’s just say the Commission isn’t setting any speed records for activity.

The recommendations agreed to today are a first pass and leave out some key provisions. The recommendations, such as they are, will be forwarded to the Maryland state legislature which meets for 90 days each year starting in January.

Read More “MD Commission Finally Makes Recommendations on Shale Drilling”
Air Quality | Hydraulic Fracturing | Industrywide Issues

John Hanger: How the U.S. Cut Carbon Emissions 12% in 5 Years
January 8, 2013January 8, 2013

John Hanger, former Secretary of the Pennsylvania Dept. of Environmental Protection (DEP), candidate for the Democrat nomination to run as governor in PA, and MDN’s very first webinar guest (see Webinar Replay: John Hanger on Gas Drilling and Energy Choices), posted his Top Energy Fact of 2012 last Friday on his “Facts of the Day” blog site. And what might his top fact be for all of 2012? The United States has cut carbon emissions from 2007 to 2012 by 12%—while at the same time growing its economy and using more energy.

How is such an incredible feat possible? Glad you asked. John has the answer: shale gas and the miracle of hydraulic fracturing.

Read More “John Hanger: How the U.S. Cut Carbon Emissions 12% in 5 Years”
Hydraulic Fracturing | Industrywide Issues

MDN Goes to the ‘Promised Land’
January 7, 2013January 7, 2013

MDN decided to “take one for the team” and attend Promised Land, the new anti-fracking movie by Matt Damon and Gus Van Sant, this past weekend. Prior to attending, MDN had read a number of reviews from both pro- and anti-fracking writers. Almost all of those reviews said the same thing—this movie was no China Syndrome for the fracking movement. That is, Promised Land will not be a watershed movie that wins the hearts and minds of average Americans, turning them against fracking (see Anti-Drillers Disappointed with Promised Land).

We have to agree with that assessment. However, we’ll be more charitable than many anti-fracking critics by saying overall, we thought it was a decent flick, as movies go. But then, we like sentimental “the good guy wins” kinds of movies.

Spoiler Warning: This review gives it all up. If you haven’t seen the movie yet and plan to go, don’t read this review just yet. Go and see the movie, then come back and read this review. So let’s get down to it…

Read More “MDN Goes to the ‘Promised Land’”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC Com. Joe Martens Sends Letter to NY Landowner Group
January 7, 2013January 7, 2013

Dan Fitzsimmons, president of the Joint Landowners Coalition of New York (JLCNY), received a letter from NY Dept. of Environmental Conservation (DEC) Commissioner Joe Martens last week (see a copy embedded below). It seems Gov. Andrew Cuomo personally asked Martens to respond, in writing, to the JLCNY’s concerns about the latest delay in the release of new fracking regulations—the delay to allow for a public health review. The latest number on the NY moratorium clock (on the right) shows New York’s ban on high volume hydraulic fracturing is 4 years, 5 months and 15 days old—so far. The patience of New York’s landowners is wearing thin.

According to the letter, Gov. Cuomo and Martens want the JLCNY to know, well, nothing new that we don’t already know! It’s the gesture itself that’s important—the fact that Cuomo and Martens took the time to write. Martens’ gesture in sending the letter gives the JLCNY reason to be “cautiously optimistic that the DEC will soon complete the SGEIS and regulations,” according to an email MDN received from Fitzsimmons.

Read More “NY DEC Com. Joe Martens Sends Letter to NY Landowner Group”
Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Dominion Wins Case, New Cove Point LNG Export Facility Proceeds
January 7, 2013January 7, 2013

A court battle that started in early 2012 has a happy conclusion for energy giant Dominion. More than a year ago, Dominion filed for a permit to liquefy natural gas and export it from their facility at Cove Point, Maryland—60 miles southeast of Washington, D.C. Dominion has Japanese customers ready and waiting to buy natural gas from the U.S. But a 1970s legal settlement granted the Sierra Club with the power to reject significant changes to the facility. True to character, the Sierra Club objected in April (see Sierra Club Will Try to Block Maryland LNG Export Terminal).

On Friday, a Maryland judge ruled in favor of Dominion, which means Dominion can now proceed with their plans to invest up to $3.5 billion in the facility (an regional economic tsunami) to get it ready to export Marcellus Shale LNG from Cove Point.

Read More “Dominion Wins Case, New Cove Point LNG Export Facility Proceeds”
Industrywide Issues | Landfills | Ohio | Stark County

Concerns about Radioactive Drill Cuttings in OH Landfill
January 7, 2013January 7, 2013

A controversy is brewing in Stark County where a private landfill wants to build a 12-mile pipeline to carry landfill liquids (called leachate) to the Canton municipal sewage treatment plant for treatment and disposal into the Nimishillen Creek, which in turn runs into the Tuscarawas River. The “problem” is that the landfill accepts Utica Shale drill cuttings—leftover mud, rock and dirt from drilling operations.

One Stark County official, Councilwoman-at-large Mary Cirelli, is concerned the drill cuttings at the landfill will create leachate with high levels of radioactivity and if treated at the Canton sewage plant, it will contaminate the Tuscarawas River. Similar scenarios with concerns over radioactive drill cuttings has played out in Marcellus Shale locations as well (see this MDN story). Those locations, which now accept drill cuttings, have no reported instances of radioactive leachate.

Read More “Concerns about Radioactive Drill Cuttings in OH Landfill”