Industrywide Issues 1286 - Marcellus Drilling News

PA Act 13 Zoning Lawsuit Goes to Trial in June

May 10, 2012May 10, 2012

An update on the Act 13 lawsuit filed by seven Pennsylvania municipalities and the Delaware Riverkeeper Network at the end of March (see this MDN story). Act 13 is a set of new drilling rules and regulations adopted by the PA legislature and signed by Gov. Tom Corbett in February of this year. Part of the new regs included a statute that says state rules on zoning for oil and gas drilling supersede or override local zoning laws. The seven towns and Riverkeeper sued to stop that portion of the new law and Commonwealth Court Judge Keith Quigley granted a temporary, 120 day injunction (see this MDN story).

The case will now be heard by the full nine-member Commonwealth Court between June 4-8. That’s big news. But there’s even bigger news:

Industrywide Issues | Pipelines

DHS & FBI Investigate Cyber Attacks on NatGas Pipelines

May 10, 2012May 10, 2012

According to an article published by Natural Gas Intelligence (NGI), the Department of Homeland Security (DHS) and FBI are investigating a series of ongoing cyber attacks against the computer networks of major natural gas pipelines in the U.S. The attackers use “spear-phishing” techniques, which use Facebook and other public sources of information to gather details about employees to send emails from alleged coworkers in order to trick them into revealing information or clicking on infected links.

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Property Value | Washington County

Homeowner Refused Mortgage Because of Nearby Gas Drilling

May 9, 2012May 9, 2012

One of the arguments used against natural gas drilling is that it can drive down property values of nearby homes. While MDN has not seen studies to prove or disprove that argument, we did spot this story about a homeowner in western PA who has been refused refinancing of their mortgage by three different national lenders because there’s active natural gas drilling across the street from their home:

Hydraulic Fracturing | Industrywide Issues | Regulation

Vermont will Become First State to Ban Fracking

May 9, 2012May 9, 2012

Not that it matters beyond PR value, but Vermont will become the first state to ban the practice of hydraulic fracturing, either later this week or next:

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

Ohio DNR Hires 70 New Field Inspectors for Utica Shale

May 9, 2012May 9, 2012

In yet another sign that Utica Shale drilling for oil and gas is rapidly expanding in Ohio, the Ohio Department of Natural Resources (ODNR) has hired and is training 70 new field inspectors to help with the well permitting and reviews.

Industrial Complex near Columbiana, OH Gets Shale Makeover

May 9, 2012May 9, 2012

The former National Refractories complex just outside Columbiana, OH is getting a shale gas makeover. Owner Jerry Stoneburner says the 300,000 square foot facility that sits on 100 acres will become both a shale gas wastewater treatment center and a transfer point to load railroad cars with crude oil and condensate being produced in the Marcellus and Utica Shale.

Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Washington County

Pittsburgh Newspapers Sue to Unseal Drilling Court Case

May 9, 2012May 9, 2012

The Pittsburgh Post-Gazette and the Observer-Reporter of Washington, PA have sued to open sealed court documents in a case involving a Pennsylvania couple who previously were outspoken critics of the natural gas drilling industry and who made claims that drilling had contaminated their water supply. Last week, anti-drillers joined their cause and filed a brief in state Superior Court.

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

SRBC “Insists” Drillers Use Acid Mine Water if Possible

May 8, 2012May 7, 2012

An idea that’s been floating “out there” for some time, at least in Pennsylvania, is for gas drillers to use acid mine water that flows from abandoned coal mines. It’s estimated there is some 300 million gallons per day of acid mine water—more than enough to frack every well drilled in PA each year. Last year, Gov. Tom Corbett’s Marcellus Shale Advisory Commission recommended that the state Department of Environmental Protection set up an approval process to make it happen—something now in the works.

Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Legislators Vote to Approve New Drilling Rules

May 8, 2012May 7, 2012

The Ohio Joint Committee on Agency Rule Review, a committee made up of five Ohio State Representatives and five Ohio State Senators, has approved new rules for constructing oil and gas wells in the state. They also approved new guidelines for Utica and Marcellus Shale drilling permits.

MarkWest Buys Keystone Midstream for $512M

May 8, 2012May 7, 2012

Pipeline giant MarkWest has just gobbled up another, albeit much smaller, competitor. MarkWest announced yesterday it is purchasing Keystone Midstream for $512 million. Keystone is owned by Stonehenge Energy Resources and Rex Energy with operations primarily in Butler County, PA.

As part of the deal, MarkWest will gain contracts and a partnership with Rex Energy and Sumitomo Corporation to transport and process their rapidly expanding production in the liquids-rich portion of the Marcellus Shale in Butler and Beaver counties in Pennsylvania. MarkWest and Rex are also exploring a deal for Utica Shale production in eastern Ohio.

MarkWest Inks Two New Deals to Expand Processing in WV

May 8, 2012May 7, 2012

MarkWest has been in the news a lot lately, signing a raft of new agreements and even buying out a competitor. Last Friday, MarkWest announced they had signed an agreement (terms not disclosed) to expand MarkWest’s processing capacity in the Marcellus Shale to handle more Chesapeake production. The areas covered by the agreement include northern West Virginia (Brooke, Ohio and Marshall counties), and Washington County in Pennsylvania.

Hydraulic Fracturing | Industrywide Issues | Regulation

BLM Issues Proposed New Rule for Fracking Federal Lands

May 7, 2012May 7, 2012

On Friday, the Department of Interior’s Bureau of Land Management (BLM) released the long anticipated new rule for hydraulic fracturing on federally-owned and Indian-owned land (see a copy of the proposed new rule embedded below). The question for MDN readers is, does this have any impact on drilling in the Marcellus and Utica Shale? The answer to that question is…

The AP Calculates 2011 Shale Gas Revenue for PA & WV

May 7, 2012May 7, 2012

The Associated Press (AP) did an analysis of how much natural gas was produced in Pennsylvania and West Virginia during 2011 and have run some basic calculations based on an assumed average price (last year) of $3.50 per thousand BTUs (or mBtus). The results of those calculations should put to bed any claims that shale gas drilling does not have a profound economic impact that touches every resident in a shale gas producing state.

According to the AP analysis:

Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

NY Town Votes NOT to Ban Drilling (!)

May 7, 2012May 7, 2012

In a somewhat unique turnabout, some townships in New York State are voting to not adopt a gas drilling ban, preferring to let the state complete it’s now four-year-long review process before making any decisions about drilling. One of those towns is Colesville:

Unproductive PA Wells Still Liable for Partial Impact Fee

May 7, 2012May 7, 2012

The price for drilling a Marcellus Shale gas well in Pennsylvania that “misses” and is not economically viable may have just gotten a lot steeper. It looks like the state Public Utility Commission (PUC), charged with collecting and distributing the new impact fee under Act 13, is going to levy the fee on exploratory wells that end up not being productive and plugged.

Hydraulic Fracturing | Industrywide Issues | Regulation

EPA Issues Draft Rule on Using Diesel Fuel in Fracking Fluid

May 7, 2012May 7, 2012

Friday was document-dump day at the federal government. In addition to the Bureau of Land Management’s new hydraulic fracturing on federal land proposed rule (see this MDN story), the Environmental Protection Agency issued a new policy, or “Guidance” as they call it, for granting drilling permits to drillers who want to use diesel fuel as a component in their fracking fluid mix (a copy of the new Guidance is embedded below).