Wall Street Journal Predicts Shale Gas Will Rock the World

Today’s Wall Street Journal includes a special section on energy, and the lead story, taking up the entire front page and continuing inside, is titled, “How Shale Gas is Going to Rock the World.” The article is written by Amy Myers Jaffe, a Fellow in Energy Studies at Rice University. Ms. Jaffe writes a stellar article that shows how shale gas, if not derailed by environmental extremists, will be THE energy story of the next several decades. MDN highly recommends you read this article (generally requires a subscription, but this special supplement is free and open for now—read it while you can).

Here’s a couple of paragraphs from the article to give you a taste:

We’ve always known the potential of shale; we just didn’t have the technology to get to it at a low enough cost. Now new techniques have driven down the price tag—and set the stage for shale gas to become what will be the game-changing resource of the decade.

I have been studying the energy markets for 30 years, and I am convinced that shale gas will revolutionize the industry—and change the world—in the coming decades. It will prevent the rise of any new cartels. It will alter geopolitics. And it will slow the transition to renewable energy.*

And no, slowing the adoption of renewable energy is not a negative—it’s a positive—because it will give renewable technologies time to develop without having to be heavily subsidized with our tax dollars and forced on us by a nanny state government. That is, natural gas is a bridge that will allow the free market (in renewable energy) to take its course naturally. Gotta love capitalism! Capitalism is superior to any other economic system in the world—and Ms. Jaffe shows us why.

*Wall Street Journal (May 10) – Shale Gas Will Rock the World

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PA College of Technology to Offer Marcellus Gas Drilling Courses to High Schoolers in Northern and Central PA

The Pennsylvania College of Technology (part of the Penn State University system) continues to innovate by offering training for those interested in jobs and careers in the gas drilling industry. This time, they’re offering courses to high schoolers:

The National Science Foundation has awarded a $294,689 grant to the Pennsylvania College of Technology to educate and train high school and college students for careers in the Marcellus Shale natural gas industry, according to officials from the college and a press release issued this week by U.S. Rep. Chris Carney’s office.

The college will use much of the money to develop and implement college-level courses that will be offered at high schools in Bradford, Sullivan and other counties to provide training that will be useful in jobs in the natural gas extraction industry, said Jenette Carter, Pennsylvania College of Technology’s director of outreach for K-12.

The high school courses will benefit students from 23 school districts in central and northern Pennsylvania…The high school courses for which college credit will be granted are technical or vo-tech courses in areas such as welding, electronics, diesel technology, heavy equipment operation and repair, forestry, and information technology (networking).*

*Towanda Daily Review (May 6) – High school courses that will lead to careers in gas industry being implemented locally

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Delaware River Basin Commission to Landowners and Drillers: We’re Taking Our Time

As MDN has previously reported, the Delaware River Basin Commission (DRBC) continues to block drilling in the Marcellus Shale anywhere within the DRBC’s jurisdiction. The delays in drilling will continue at least until sometime in 2011 (MDN’s estimate) due to an extended public comment period on new regulations they are drafting, and from their previous statements about waiting for a federal grant “later this year” to study drilling. If you own land in the Delaware River Basin, or you’re a drilling company in that area, good luck. All signs point to an anti-drilling group of Commission members who are intentionally dragging their feet.

From a press release issued by the DRBC today:

(WEST TRENTON, N.J.)—The Delaware River Basin Commission (DRBC) at its May 5, 2010 public business meeting directed commission staff to draft regulations for natural gas well pad projects in shale formations in the Delaware River Basin. The commissioners will consider specific natural gas well pad applications after the new regulations are in place.

“The drafting process is already underway, so it made logical sense for the development of new regulations to move forward in advance of any individual project decisions,” DRBC Executive Director Carol R. Collier said in describing the action taken yesterday by the commissioners representing Delaware, New Jersey, New York, Pennsylvania, and the federal government. The rulemaking process will include public notice and a full opportunity for public comment before the commissioners adopt the regulations.

The DRBC has already conducted a public hearing and received over 2,000 written comments regarding a proposal previously submitted by Stone Energy Corporation for the Matoushek #1 well located in Clinton Township, Wayne County, Pa. The commissioners’ decision to rule upon this and other pending and future specific natural gas well pad project applications after the new regulations are adopted is consistent with many of the public comments submitted.

Commission review of pending or future proposed water withdrawals to be used to supply water to natural gas extraction projects, including Stone Energy’s proposed water withdrawal from the West Branch Lackawaxen River in Mount Pleasant Township, Wayne County, Pa., will proceed in accordance with existing DRBC regulations. The written comments that the DRBC received during the comment period that closed on April 12 pertained to both Stone Energy’s proposed water withdrawal project and its proposed natural gas well drilling project. The earliest that the commission could vote on the Stone Energy proposed water withdrawal project would be its next public business meeting scheduled for July 14, 2010.

*Delaware River Basin Commission Press Release (May 6) – DRBC Will Review Natural Gas Well Pad Projects After Adoption of New Regulations

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CONSOL Energy Building Coal Mine Acid Water Treatment Plants to Produce Water for Marcellus Shale Drilling

CONSOL Energy is a long-time coal producing company and now the third largest player (by acreage) in the Marcellus Shale after buying Dominion Resource’s gas exploration and production division (for $3.5 billion). So what’s next for CONSOL? Water!

CONSOL already traps and treats millions of gallons of water from the coal mining operations they have. They now plan to reuse that water for their Marcellus Shale drilling operations, and perhaps even sell it to their drilling competitors.

“We already have access to all this water that we already own and already treat,” running from underground mines such as the Bailey-Emerald complex in Greene and Washington counties, [Consol CEO J. Brett] Harvey said.

“We are actually going into the water business, I would say,” he said. Natural gas “was a byproduct of coal, and we built a gas company. Now it looks like water is a byproduct of all this (coal production), and we’ll probably develop great water resources for the state.”

Each [coal] mine treats and discharges millions of gallons each year. Consol will spend $200 million to $300 million over the next five years to build four or five new water treatment plants in Marcellus areas, he said, adding, “I’d love to be in the position where I am selling water to all our competitors” who now buy water from municipalities and other sources.

The idea is gaining momentum elsewhere.

“The reusing of acid mine drainage for fracking is a viable alternative to using surface and ground water,” Radisav Vidic, chairman of the civil and environmental engineering department at the University of Pittsburgh, told an audience at a Marcellus Shale conference yesterday at Duquesne University.*

*Pittsburgh Tribune-Review (May 5) – Consol pegs water as next business move

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Northeastern PA Experiencing a Boom for Local Businesses from Marcellus Shale Drilling

A recent meeting of the Wyoming County (PA) Chamber of Commerce saw over 400 members, mostly from area small businesses, networking and listening to presenters who have already reaped financial rewards from Marcellus drilling activity in the area. Two examples:

Early on as the industry developed in Susquehanna County about 18 months ahead of Wyoming County, [Bill Kelley of Taylor Rental] noted an occasional need for drillers to borrow rental equipment when something broke down. Not only did Kelley enhance his inventory, but in the intervening months he saw a need and created a new spinoff business known as BX3 Oilfield Supply. He enlarged his workforce to handle the clients.

Art Carpenter who oversees the Skidder Shop just out Rt. 92 south of Tunkhannock said his business has become a franchise dealer for water tankers and frankly can’t keep the rigs that run around $170,000 on the lot long enough.*

It’s not only landowners and energy companies who benefit from drilling—the entire community benefits.

*The Susquehanna Independent Weekender (May 5) – Gas boom creating opportunity

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‘Energy in Depth’ Sets the Record Straight on Hydraulic Fracturing

Below is an “Issue Alert” published by Energy in Depth (EID) on May 4th—reprinted here with permission. EID is an online educational website sponsored by oil and gas producing associations from across the U.S. It’s mission is to respond to half-truths and outright falsehoods with science and facts. They do an excellent job. The piece below is an important read to help set the record straight about hydraulic fracturing. In recent months, “fracking” has been made out to be dangerous and unsafe and the hue and cry is to outlaw it as a method of harvesting natural gas. EID does a great job in responding to the charges being leveled against this important and safe (and 60-year-old) technology.

Energy in Depth (May 4 Issue Alert) – Evidence is Not the Plural of Anecdote

EID responds to NRDC’s running list of conjectures and distortions targeting safety, performance of hydraulic fracturing

Last month, our friends over at the Natural Resources Defense Council (NRDC) started up a running tally on their blog identifying “incidents where drinking water has been contaminated and hydraulic fracturing is a suspected cause.”

Of course, in a country with more than 470,000 active natural gas wells in operation, providing American consumers with more than 20 trillion cubic feet of natural gas each year, the unfortunate (and inevitable) reality of the situation is that the occasional incident will occur. And since a good number of these wells depend on fracturing to be viable, it’s also inevitable that those who oppose the use of hydraulic fracturing on ideological grounds (as opposed to scientific ones) will continue to blame the heavily regulated, 60-year-old technology for just about everything that may go wrong under the sun.

In a lot of ways, hydraulic fracturing has become the victim of its own success. Almost universally regarded as the sine-qua-non of energy production in America today, hydraulic fracturing—coupled with horizontal drilling technology—allows operators today to produce more than 10 times the amount of energy by drilling fewer than 1/10th the number of wells.

That this is great news for the environment is so self-evident as to require no further explanation. But smaller footprints aside, it also allows us to tap an abundance of resources that simply could not be accessed without it. And that’s the thing: NRDC would prefer these resources be kept in the ground—and at least has the courage to say so. But it knows the way to do that isn’t to attack the jobs, revenue or people associated with bringing this extraordinary resource to the surface. It knows it can’t attack the carpenter. So it’s decided to attack his tools instead.

Read More “‘Energy in Depth’ Sets the Record Straight on Hydraulic Fracturing”

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NY Congressman Michael Arcuri Talks Out Both Sides of His Mouth on Drilling in the Marcellus

Upstate New York Congressman Michael Arcuri says the BP oil disaster in the Gulf of Mexico means we should slow down (or perhaps not even start) drilling in the Marcellus Shale. Yes folks, we don’t make this stuff up! An oil drilling accident off-shore now equates with hydraulic fracturing of shale for natural gas. Go figure.

Mr. Arcuri’s press release below, taken verbatim from his website, is a classic example of a politician talking out of both sides of his mouth:

WASHINGTON, DC – U.S. Rep. Michael A. Arcuri (NY-24) issued the following statement renewing his call for a cautious approach to natural gas drilling in Upstate New York in light of the BP oil spill in the Gulf of Mexico:

“The BP oil spill in the Gulf of Mexico demonstrates how vital it is for us to proceed with the utmost caution when considering natural gas drilling in Upstate New York.  While I support measures to open up energy reserves here at home and create new job opportunities for Upstate families, I also believe that we must carefully examine the potential outcome that natural gas drilling may have on the health of surrounding homes and communities.  Natural gas is a tremendous natural resource with great economic potential, but we must move forward in a way that protects an even more precious natural resource – our abundant supply of clean drinking water.

“New York’s natural gas reserves are not declining in value as they wait to be developed, and methods become safer and more efficient as companies adapt techniques. But, as we have seen in the Gulf of Mexico, we cannot assume a spill will not happen or become careless in protecting the environment because one mistake could be devastating.

“With so many residents who live in rural areas relying completely on well water, we cannot afford to sacrifice the purity of our water by rushing to drill.

“It is my hope that this disaster serves as a reminder to us all just how high the stakes are and that we must take every precaution possible to ensure that a rush to drill the Marcellus Shale does not irreparably contaminate our water.”

*Press Release (May 4) – Arcuri Renews Call for Cautious Approach to Natural Gas Drilling in Upstate New York in Light of Gulf of Mexico Oil Spill

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Anti-Driller Lets the Truth Slip Out: “It’s not about the science”

Don’t look now, but somehow a little bit of truth seeped into the reporting about hydraulic fracturing. And it happened in the Syracuse Post-Standard:

At a public forum in DeWitt, Syracuse University hydrology professor Don Siegel thought he had presented enough unbiased, scientific information to prove that drilling for natural gas in New York would benefit the state far more than it might hurt.

Then someone in the audience of more than 75 stood up.

“With all due respect, Dr. Siegel,” she said, “it’s not about the science.”

Two months later, Siegel still stews over those words.

The debate should be about the science, he contends, as do two retired SU professors, Bryce Hand and Joe Robinson — who have defended high-volume hydraulic fracturing as a safe method to capture a huge supply of underground natural gas in the Marcellus Shale formation.

But opponents of hydrofracking have “dispensed with science and rely on fear” to turn the public against drilling, Siegel said.*

The article quotes one scientist (a Cornell professor) who is opposed to drilling, but at least the pro-drilling (and scientific) side of the debate is fully explored in this article, and is well worth the read. Kudos to the Post-Standard for some honest reporting.

*Syracuse Post-Standard (May 2) – Some scientists say hydrofracking benefits outweigh risks

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More Delay Tactics, Elected Officials in NY Actively Oppose Drilling in the Marcellus Shale

New York State’s future with drilling in the Marcellus Shale continues to be cloudy at best. While MDN believes drilling should start—now—hoping and wishing will not make it happen and New York landowners have to face the cold, hard reality it may not happen until summer 2011 at the very earliest (if indeed it ever happens). Now that the NY Department of Environmental Conservation is proposing two sets of rules for drilling—one for the New York City and Syracuse watershed areas, the other for everyone else—anti-drillers are using it as a wedge issue.

Must be fun being an anti-drilling person in NY. First, you say over and over and over again that drilling in the Marcellus in the watershed may contaminate New York City’s water supply. And so, when finally the DEC throws up its hands and says, “OK, we’ll take drilling in the watershed off the table,” the new argument becomes, “See! See! If it’s not safe for the watershed, it’s not safe anywhere!” Gotta love that twisted logic. Point of fact: Hydraulic fracturing is safe everywhere, including the watersheds.

Here’s some of the latest opposition to drilling from New York’s elected leaders:

Assemblyman Kevin Cahill, D-Kingston, chairman of the Assembly’s Energy Committee, and Assemblywoman Barbara Lifton, D-Ithaca, are preparing legislation that will require the same drilling regulations for all state watersheds, including the Delaware.

Assemblywoman Aileen Gunther, D-Forestburgh, recently co-sponsored a bill calling for a moratorium on drilling at least until a federal study on the impact of “fracking” on drinking water is complete — in about two years.

And on Friday, Rep. Maurice Hinchey, D-Hurley, called on the Delaware Basin Commission, which approves withdrawals of Delaware River water used for “fracking,” to conduct an environmental impact study on the cumulative effects of those withdrawals before it considers any applications.*

So, let’s recite the playbook: Claim it’s not safe. Claim it pollutes water supplies. And when all else fails, call for “let’s go slow and do more studies” and try to delay drilling for at least 2-3 more years to give the anti-drilling forces time to solidify opposition and completely kill it forever.

And lest PA thinks they’re clear of all this, you’re not. The Delaware River Basic Commission has effectively blocked drilling in the Delaware River watershed for now. And your own U.S. Senator, Bob Casey, is asking the U.S. Environmental Protection Agency to get involved in the situation in Dimock, PA.

*Middletown Times Herald-Record (May 2) – Legislators want drilling rules fairly crafted

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PA League of Women Voters Comes Out Against Drilling in the Marcellus

The League of Women Voters of Pennsylvania is anti-drilling. Although they pretend to be a non-partisan group, they are anything but. Not only do they sponsor forums with anti-drilling speakers on a regular basis, they have now issued an official position in favor of an extraction tax on drilling in PA, and they have gone on record favoring strict new regulations for drilling in PA. While they don’t categorically say “don’t drill,” their positions and statements essentially do say it. Here’s the opening (alarmist) paragraph from the press statement announcing their official position on drilling in the Marcellus:

FRAC is a four-letter word, F, R, A, C. FRAC impacts everyone in Pennsylvania. It requires the immediate attention of all–from young and old, from rich to poor, from Pittsburgh to Easton, and from Philadelphia to Erie. Why? Fracturing is an explosive process that expels natural gas from Marcellus Shale, a rock that lies deep beneath two-thirds of our Commonwealth. Natural gas extraction impacts our water, our land, our air, our communities, our public health, and our economy.*

Yes, fracturing is an explosive process—small, controlled explosions that happen a mile below solid rock (conveniently left out of the statement). The language used in the press statement is distorting and pejorative about the process of drilling. But hey, it’ll bring in the contributions and it whips up the faithful!

*Statement by Olivia Thorne, President, PALWV (May 3) – Press Conference on Marcellus Shale Natural Gas Extraction

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Marcellus Shale Companies in Pennsylvania Looking to Fill Jobs and Contract with Local Businesses

Companies involved in drilling, processing and transporting Marcellus Shale gas in Pennsylvania are looking to contract with local businesses and hire local people to work for them. On the list are…

  • Contractors for:
    • clearing land
    • constructing well pads
    • setting up rigs
    • running wirelines
    • hauling waste
    • hauling dirt
    • mechanical work
    • civil work
    • electrical work
    • environmental surveyors
    • installers
  • Real estate/office space
  • Drilling crews
  • Frac crews
  • Right-of-way agents
  • Suppliers for:
    • drilling mud
    • frac fluid
    • steel pipes
    • valves and fittings
    • natural gas compressors
  • Engineering firms
  • Environmental firms
  • Professionals:
    • geologists
    • geophysicists
    • environmental engineers

The companies looking to hire include:

  • East Resources
  • Chief Oil & Gas
  • Laurel Mountain Midstream
  • MarkWest Energy
  • Talisman Energy

For more details, along with contact names and inside tips for submitting a bid or applying for a job, see the article linked below.

*Pittsburgh Business Times (Apr 29) – The Marcellus Shale: How your company could get in on the action

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National Fuel Does Pipeline Deal with Statoil and East Resources to Move Marcellus Shale Gas to Canadian & Northeast US Markets

National Fuel has struck a deal with Statoil and East Resources and is expanding two pipelines to handle Pennsylvania Marcellus Shale gas, sending it to markets in Canada and the Northeastern U.S. The announcement says National Fuel will build 16 miles of new pipeline from Corning, NY to Tioga County, PA, and construct a new interconnection with the Tennessee Gas Pipeline in Ontario County, NY, among other improvements.

From the National Fuel press release:

WILLIAMSVILLE, N.Y.–(BUSINESS WIRE)–National Fuel Gas Supply Corporation (“Supply”) and Empire Pipeline, Inc. (“Empire”), the companies that comprise the Pipeline and Storage segment of National Fuel Gas Company (NYSE: NFG) (“National Fuel”), have reached major milestones on two pipeline expansion projects that are the first in the industry designed to receive natural gas produced from the Marcellus Shale and transport it to key markets of Canada and the Northeast U.S. Supply has entered into a binding precedent agreement with Statoil Natural Gas LLC (“Statoil”) for 100 percent of the capacity on Supply’s “Northern Access” expansion project. Empire also has a binding precedent agreement in place with anchor shipper East Resources, Inc. (“East”) for Empire’s “Tioga County Extension” project, and is concluding negotiations for additional capacity with a second shipper. The precedent agreements provide for Statoil and East to sign, after satisfaction of conditions, firm transportation service agreements under which Supply and Empire will transport natural gas for Statoil and East.

Read More “National Fuel Does Pipeline Deal with Statoil and East Resources to Move Marcellus Shale Gas to Canadian & Northeast US Markets”

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NY DEC Message to Landowners in New York’s Watersheds: Forget About Drilling

These are the bald facts of life for New York landowners who own land in either the New York City or Syracuse watershed areas and may want to lease their land for Marcellus Shale gas drilling: Forget it. That’s the loud and clear message from NY Department of Environmental Conservation (DEC) Commissioner Pete Grannis. After the DEC’s announcement of last week, no energy company in their right mind will be willing to drill in New York’s watersheds (although drilling companies currently drill safely in the Susquehanna River watershed in PA, and are trying to drill in the Delaware River watershed in PA).

Reaction from landowners in New York has been mixed. While some believe watershed landowners are being unfairly penalized, others think this may speed up the process of drilling for everyone else by removing a key objection to drilling—that drilling may contaminate city water supplies.

From a press release issued by the NY DEC last week:

April 23 – New York State Department of Environmental Conservation (DEC) Commissioner Pete Grannis today announced that due to the unique issues related to the protection of New York City and Syracuse drinking water supplies, these watersheds will be excluded from the pending generic environmental review process for natural gas drilling using high-volume horizontal drilling in the Marcellus shale formation. Instead, applications to drill in these watersheds will require a case-by-case environmental review process to establish whether appropriate measures to mitigate potential impacts can be developed. There are 58 pending applications for horizontal drilling in the Marcellus shale; no applications are located in either the New York City or the Skaneateles Lake watersheds (Syracuse utilizes the Skaneateles watershed).

Read More “NY DEC Message to Landowners in New York’s Watersheds: Forget About Drilling”

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Joint Landowner’s Coalition of NY Makes Appeal to Landowners

The Joint Landowner’s Coalition of NY has put out a plea for donations. Drilling in New York may not happen unless landowners can generate enough noise to break through the resistance in Albany. Here is the letter reproduced in full from the JLCNY:

A Message from the JLCNY President Dan Fitzsimmons – April 27, 2010

Fellow Landowners – I don’t have to tell you we have much at stake.  But I do need to sound an alarm:  the time for us to act is NOW.  We are organized.  We are prepared.  And although we have worked intensely over the last two plus years, we are outmanned, outspent, outmaneuvered.  We need to step up our game, and we have a plan to get it done.  But we desperately need your financial support.  Some of you have given generously financially.  Some of you have poured blood, sweat and tears into this effort.  And some of you will make your first donation right now.  We need as much as you can afford to give to fund our efforts to:

  • Hire professionals in Albany who can represent us and make sure our voices are not drowned out by the better-funded extremists.  These professionals can open doors, cut through clutter and red-tape for us and focus us on the most effective strategy for being heard where it counts.

  • Get the word out:  you’ve heard the same arguments I hear:  more people are against drilling than are for it.  We know that’s not true – but we have to erase that perception.  The best way to do that is to blanket our area with lawn signs, drown our airwaves with pro-drilling ads, promote speakers at public forums who can support our issues with facts, erect billboards with clear messages, etc.

  • Continue to support landowners.  In some respect, the work begins when the moratorium is lifted and leases are signed.  Who will advocate for landowners in their negotiations and relations with energy companies?  Who will be a watchdog with the regulatory agencies?  Who will make sure we have the best and latest information on and about the industry and the technology surrounding us?  Landowners will need the JLC more and more as time goes by and as the stakes continue to rise. We cannot sustain it without your support.

We are seeking support from a number of channels:  from corporations and industry; from foundations and other organizations who may provide grants for our work; from local business and farm organizations.  But the most important support we need RIGHT NOW is from you.  Please give what you can today – $10, $20, $100, $500 or more.  See if your company has a matching donation program – or if you know of any other source you can approach for us – please do.  Use PAYPAL on our website: JLCNY.org or send a check to:

PO Box 2839
Binghamton, NY 13902

Thank you from the bottom of my heart.  We will get there, but only if we stay together on this.

Dan Fitzsimmons
President JLCNY

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Kinder Morgan Building New Marcellus Shale Pipeline from Pennsylvania to Michigan

Kinder Morgan, a pipeline and energy storage company, will build a new 250-mile pipeline from Pennsylvania to the Cochin Pipeline in Michigan to move Marcellus Shale gas to processing facilities and markets in the Midwestern U.S. and Canada.

From the Kinder Morgan press release:

HOUSTON, April 20, 2010 – Kinder Morgan Energy Partners, L.P. today announced plans to modify and expand the existing Cochin Pipeline system to provide a solution for transporting natural gas liquids (NGL) from the Marcellus Shale Basin to fractionation plants and chemical markets near Sarnia, Ontario, and Chicago, Ill.

Kinder Morgan plans to build approximately 250 miles of NGL pipeline from the Marcellus Shale Basin in southern Pennsylvania to the Cochin interconnect at Riga, Mich. From Riga, Kinder Morgan anticipates that product will be transported through the existing Cochin Pipeline system to Windsor, Ontario, and then through the Windsor-Sarnia Pipeline to Sarnia. Kinder Morgan also plans to reverse the eastern leg of its Cochin pipeline in order to move NGLs from Riga to the Chicago area, where it expects to build an additional pipeline to connect to existing fractionation facilities and chemical plants.

“Our proposed pipeline and key existing infrastructure offers NGL producers the quickest and most efficient solution to get their product to the market,” said Don Lindley, vice president of business development for Kinder Morgan’s Products Pipeline group.

The pipeline will be designed to transport mixed NGLs (Y-grade), as well as purity NGLs such as ethane, and will have an initial throughput capacity of 75,000 barrels per day and can be expanded to handle up to 175,000 barrels per day.

The recent decision by Canada’s National Energy Board directing the reconnection of the Cochin Pipeline to the Windsor-Sarnia Pipeline will enable Cochin Pipeline shippers to have access to the Sarnia chemical complex. Kinder Morgan anticipates offering transportation from Marcellus to Sarnia for under 14 cents per gallon.

Kinder Morgan expects to move forward with an open season in the second quarter of 2010.

Kinder Morgan Press Release (Apr 20) – Kinder Morgan Offers Quick and Efficient Solution to Move Marcellus NGLs to Market

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A New and Potentially Safer Way to Treat Marcellus Shale Wastewater

A Pittsburgh startup company formed at the Pittsburgh Allegheny-Singer Research Institute believes it has developed a better solution than current alternatives for treating wastewater from drilling Marcellus Shale gas wells. Frac Biologics Inc. was founded by physicians, so it’s no surprise the technology comes from the medical community:

“The idea for the company came from our work with biofilms, which are (cell) communities that we try to manipulate or get rid of to treat human disease,” said Christopher Post, a physician and CEO of the 3-month-old company. Other founders are physician William Costerton and Garth Ehrlich. All three are Allegheny-Singer directors.

Allegheny-Singer researchers found the biofilms love to eat heavy metals, such as strontium, nickel, even uranium. The metals, in effect, fuel the biofilms, Post said.*

Water used in drilling Marcellus wells often comes out of the well containing small quantities of heavy metals. One of the objections to hydraulic fracturing is that wastewater from drilling eventually needs to be returned to the environment, and if it’s laced with heavy metals it is not safe. If Frac Biologics is successful with their concept, perhaps some of those objections can be addressed.

*Pittsburgh Tribute-Review (Apr 22) – New company says it can safely handle Marcellus wastewater