Industrywide Issues 1293 - Marcellus Drilling News

Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law

March 30, 2012March 30, 2012

A threatened lawsuit to overturn Pennsylvania’s newly passed Act 13 law that preempts local zoning ordinances passed to prevent shale gas drilling has finally materialized. The lawsuit was filed yesterday by seven PA municipalities and several other people (a copy of the lawsuit is embedded below). Act 13, signed into law in February by Gov. Tom Corbett, contains a provision that disallows local PA municipalities from passing zoning laws that are specifically aimed at preventing shale gas drilling. The loss of zoning power has some municipalities hopping mad.

GASFRAC’s LPG Fracking Method (and Future) Looking Good

March 30, 2012March 30, 2012

In a follow-up to yesterday’s blockbuster news that fracking may begin in New York sooner rather than later if Tioga County, NY landowners move forward with LPG fracking (see this MDN story), the website Seeking Alpha makes the following interesting comment about the proprietary LPG technology used by GASFRAC, and about GASFRAC’s future prospects:

Compressor Station Explosion in Susquehanna County, PA

March 30, 2012March 30, 2012

A natural gas compressor station located in Susquehanna County, PA owned and operated by Williams Partners experienced an explosion yesterday morning that blew a hole in the roof of the complex. There were no injuries and the automated emergency shutdown kicked in preventing gas from entering or leaving the station.

Commodity Price | Industrywide Issues

NatGas Commodity Price Hits a New 10-Year Low

March 30, 2012March 30, 2012

The commodity price for natural gas in the U.S. hit a 10-year low yesterday after a government report of a larger-than-expected jump in supplies. There’s now more natural gas in storage than the entire country uses in a month.

Alternative Fracking Method May Soon Debut – in New York!

March 29, 2012March 29, 2012

fox in hen house The anti-drilling crowd is about to be tested as to their true reasons for opposing shale gas drilling, and it will happen in leftist paradise—New York State.

What if you removed 99 percent of the stated objections to fracking? Took away the millions of gallons of water needed to frack a single well? Took away almost all of the chemicals used? Took away fracking wastewater that either needs to be recycled or treated or injected into a deep well? Took away almost all of the heavy truck traffic and noise and other industrialization concerns? In short—what if you took away almost every reason to oppose gas drilling?

Economic Impact | Industrywide Issues | Jobs | Luzerne County | Pennsylvania

Two PA Construction Companies Double in Size from Marcellus Work

March 29, 2012March 29, 2012

The Wilkes-Barre newspaper The Citizens’ Voice has an inspirational article in today’s edition about women working in jobs operating heavy equipment—not something you hear about often. As part of the story, we learn about the enormous impact Marcellus Shale drilling has had in the northeast Pennsylvania area on business in general, and on two construction-related businesses in particular:

Economic Impact | Industrywide Issues | New York | Statewide NY

NY Universities to Buy Cheap PA Marcellus Shale Gas

March 29, 2012March 29, 2012

Oh the irony of it. New York State wants cheap natural gas—and in fact the state wants shale gas—but they won’t allow drilling. That doesn’t stop state officials from recognizing a good deal when they see it. So New York has struck a deal to buy shale gas from Pennsylvania for five NY state universities. Why? Because it’s cheap!

Why Sunbury, PA Mayor Supports Marcellus Waste Facility

March 29, 2012March 29, 2012

As MDN reported yesterday, Clean Harbors Environmental Services of Norwell, Mass. wants to build a Marcellus Shale waste processing facility in Sunbury, PA (see this MDN story). Some area residents are not happy about it, but not so with Mayor David Persing. He supports it and offers his thinking and rationale for supporting the proposed project:

New Compressor Station Near Pittsburgh Hits Opposition

March 29, 2012March 29, 2012

Superior Appalachian Pipeline LLC has filed for a permit to construct a new compressor station in northern Allegheny County, PA (near Pittsburgh):

Industrywide Issues | Ohio | Statewide OH | Taxation

OOGA Comes Out Swinging Against Kasich Tax Proposal

March 28, 2012March 28, 2012

The Ohio Oil and Gas Association (OOGA) issued a press release on Monday taking Ohio Gov. John Kasich to task for his proposal to slap a severance tax increase on the nascent Utica Shale drilling industry and use the proceeds to give taxpayers an income tax reduction. The new tax increase on drillers has been tentatively removed from budget discussions, but OOGA believes Kasich won’t let it rest and will likely try to resurrect it.

From the OOGA press release:

After 7 Years of No Drilling, PA Families Sue to End Contract

March 28, 2012March 28, 2012

Seven Beaver County, PA families filed a lawsuit yesterday in Common Pleas Court accusing O&G Investments of Wooster, Ohio of not drilling on their land (and not paying them) for the past seven years. The lawsuit also names Chesapeake Energy, who purchased the leases from O&G last year and who now, “at the last minute,” is trying to tie up the land and continue the contract by moving in equipment to start a drill pad—even though they haven’t received any permits to drill.

Marcellus Waste Processing Facility Planned for Sunbury, PA

March 28, 2012March 28, 2012

Clean Harbors Environmental Services of Norwell, Mass. has applied for a permit to build a “waste processing facility” in Sunbury (Northumberland County), PA. The facility will accept up to 1,000 tons of Marcellus Shale drill cuttings, drilling mud and other materials per day. Although the waste is not toxic, some local officials are concerned and upset that the state DEP alone will make a decision about whether or not to approve the permit (Sunbury has no say in the matter). Sunbury mayor David Persing supports the new facility.

Change in Location for MarkWest Processing Plant in Ohio

March 28, 2012March 28, 2012

A new natural gas processing plant to be built by MarkWest Energy was supposed to be built in Monroe County, Ohio, but the geography has now shifted west and the plant will be built in neighboring Noble County, Ohio instead.

Industrywide Issues | Pipelines | Processing Plants

Private Investors Aim Their Money at Pipelines/Midstream

March 28, 2012March 28, 2012

Pipelines and the “midstream” are the next big investment opportunities for investors—so says an article by Bloomberg.

A quick primer on the oil and gas business. Drilling for oil and gas, often referred to as exploration and production (or E&P) is what is usually called “upstream.” The term “midstream” refers to the pipelines, compressor stations and processing plants that move and refine oil and gas. “Downstream” is the distribution and marketing of oil and gas to end customers. There’s some blurring of those lines; for example, big oil refineries are usually considered downstream. But you get the idea.

Alternative Energy | Industrywide Issues

Fracking’s Existential Threat to Green Energy

March 28, 2012March 28, 2012

Check out an excellent column today by Paul Driessen on the TownHall.com website. Paul is a senior policy adviser for the Committee For A Constructive Tomorrow (CFACT), and a senior policy adviser to the Congress of Racial Equality. He’s also author of Eco-Imperialism: Green Power – Black Death.

In today’s column, Paul makes the point that the Sierra Club and other so-called environmental groups oppose clean-burning natural gas and shale drilling because it’s a threat to their alternative-energy-nirvana ideology (something MDN has long pointed out). The column starts this way:

Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Wells Fargo Study: 60% of New PA Jobs from Gas Drilling

March 27, 2012March 27, 2012

jobs Wells Fargo Securities economists recently issued a report on the effects of Marcellus Shale drilling on Pennsylvania jobs (a copy of the 12-page report is embedded below). The report offers both an optimistic and pessimistic forecast of job growth, along with what they believe to be a realistic forecast. And all of their numbers are backed up with plenty of commentary so the reader understands why they predict what they predict. The bottom line?