Industrywide Issues

Aither Chemicals | Energy Services | Industrywide Issues | Kanawha County | Processing Plants | West Virginia

New Movement on the Aither Chemicals Cracker Plant in WV?
May 3, 2012May 3, 2012

A month and a half ago it seemed imminent that Aither Chemicals would announce they would build a new ethane cracker plant at the Bayer CropScience plant site at Institute Industrial Park, located in Kanawha County, near Charleston, WV (see this MDN story). Bayer CropScience, owner of the site, and MarkWest Energy, a huge pipeline company, were named as potential partners in the deal. But the expected announcement never came, and all has been silent since.

An article in the Charleston Daily Mail caught MDN’s eye, an article that says the local city of Nitro, WV have filed a petition with Kanawha County to annex 44 properties surrounding the Bayer CropScience plant. The properties in that area of the county are unincorporated—no official town or city municipal government control—and if Nitro annexes the property surrounding the plant, it prevents any other communities from trying to annex the plant itself at some future date.

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Broome County | Chenango County | Coterra Energy (Cabot O&G) | Delaware County | Energy Companies | Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Schoharie County | Susquehanna County | Williams

Williams & Cabot Partner on New 120-Mile PA to NY Pipeline
May 3, 2012May 3, 2012

Williams Partners and Cabot Oil & Gas are working on a new 120-mile natural gas pipeline, dubbed the Constitution Pipeline, that will stretch from Susquehanna County, PA through Broome County, NY, and on through Chenango County, Delaware County, and terminate in Schoharie County, connecting to the Iroquois Gas Transmission pipeline and the Tennessee Gas pipeline (see the map embedded below).

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Hydraulic Fracturing | Industrywide Issues

New “Research” Says Fracking will Contaminate Aquifers
May 2, 2012May 2, 2012

A new research paper titled “Potential Contaminant Pathways from Hydraulically Fractured Shale to Aquifers,” bought and paid for by anti-drilling organizations Catskill Mountainkeeper and the Park Foundation, christened “peer-reviewed” and published in an obscure journal called Ground Water, concludes that fracking fluids won’t stay put a mile below solid rock and will instead travel uphill, through that mile of solid rock, and contaminate water aquifers—within a few years.

What scientific method was used to conduct this all-important research that foretells the end of safe drinking water as we know it? Computer models. Yeah, the author of this “important new study” sat and played with computer models, got a few of his buddies to sign off on his “research,” got paid a boatload of money from anti-drilling organizations and published it. And now, shazam, everyone is supposed to run for the hills and end all fracking everywhere. Nice try.

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Chesapeake Energy | Commodity Price | Energy Companies | Industrywide Issues

Chesapeake’s NatGas Production Cuts Never Materialized
May 2, 2012May 2, 2012

In January 2012, Chesapeake Energy announced they would curtail (reduce) their natural gas production by 1/2 billion cubic feet (bcf) per day. In February, they announced they would double it to 1 bcf per day (see this MDN story). Other energy companies also announced they would cut production, all in an attempt to reduce supply and boost the price of natural gas. But commodities traders were wary of those announcements, saying in essence, “We’ve heard this before,” and that real cuts in production were never forthcoming (see this MDN story). Looks like the wary traders were right.

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Range Resources Corp | Regulation

EPA Administrator Al Armendariz Resigns over Crucify Comment
May 1, 2012May 1, 2012

Al Amrendariz, EPA Region 6 administrator (Texas and surrounding states) has been hoist by his own petard. Yesterday he resigned—in disgrace. It seems nearly everyone (but anti-drillers) were calling for his resignation after a video of Armendariz came to light where he outlined his philosophy of enforcement against energy company “violators” to that of the Romans who used to enter a village, find the first five men, and crucify them—which had the effect of, shall we say, making everyone else behave themselves (see MDN’s previous story on Armendariz to watch the infamous video).

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Commodity Price | Industrywide Issues

Graph Showing NatGas Rig Count vs NatGas Price
May 1, 2012May 1, 2012

In a Reuters news story about the Energy Information Administration’s (EIA) latest report showing natural gas production fell slightly in February, we get the following graphic which MDN found interesting. It shows the Baker Hughes rig count (number of natural gas drilling rigs) plotted as one line, with the second plotted line representing natural gas futures prices. The natural gas rig count—drilling rigs dedicated to drilling for natural gas in the lower 48 states—is now at a 10-year low. The count as of last Friday was 613, the lowest it’s been since April 2002. Gas prices are also at 10-year lows.

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Bradford County | Hydraulic Fracturing | Industrywide Issues | Luzerne County | Lycoming County | Pennsylvania | Susquehanna County | Tioga County (PA)

SRBC Lifts PA Water Withdrawal Restrictions, Drilling Resumes
May 1, 2012May 1, 2012

There is no official notice posted on the Susquehanna River Basin Commission’s (SRBC) website, but according to a Reuters news story, the SRBC has lifted its temporary ban on water withdrawals implemented two weeks ago on April 18. Hydraulic fracturing uses a lot of water. Drillers get the water from various sources, most often rivers and streams. If that river or stream happens to be located in the Susquehanna River Basin, withdrawals are overseen by the SRBC, which ensures water levels do not get too low.

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Aqua America | Energy Services | Hydraulic Fracturing | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | PVR Partners

New Water Pipeline Reduces Water Truck Trips in PA
May 1, 2012May 1, 2012

Aqua America and Penn Virginia Resource Partners (PVR) issued a press release yesterday to call attention to a recently completed private pipeline project in the Marcellus Shale in north-central PA. What’s new and different about this pipeline is what it carries: water. The newly completed pipeline supplies water to drilling sites without the need for water trucks—and that’s the “angle” Aqua America and PVR are pushing. They tout the fact that already, in less than a month of operation, the pipeline has eliminated more than 2,000 water truck trips.

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Industrywide Issues | Lackawanna County | Landfills | Pennsylvania

Scranton Suburb Ends Objection to Shale Cuttings at Landfill
May 1, 2012May 1, 2012

Opposition from a local township to a landfill outside of Scranton, PA that sought and was granted a permit to accept more shale cuttings has ended. Keystone Sanitary Landfill, a privately owned and operated municipal solid waste landfill located in Dunmore, PA applied to increase the daily volume of shale cuttings (leftover rock waste from drilling) from 600 to 1,000 tons per day. They also requested the Department of Environmental Protection (DEP) change their permit so they could receive the cuttings in an “unprocessed or unsolidified form” (see this MDN story).

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Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

PA DEP Continues Investigating 2 Water Wells Near Dimock
April 30, 2012April 30, 2012

Old news being reported as new news: The PA Department of Environmental Protection continues its investigation into a possible case of methane migration in two water wells just outside of Dimock Township. The investigation started in 2010 and is not part of the ongoing Dimock situation. The “new news” part of the story is that Cabot Oil & Gas added more cement in the casing of a nearby Greenwood 1 well (in March).

DEP officials are now monitoring to see if the additional cemented casing cuts down on methane in the two water wells. If it does, it will be obvious that Cabot’s Greenwood 1 well is the cause. If it does not reduce methane in the water wells, back to the drawing board and the investigation continues.

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Economic Impact | Industrywide Issues | Ohio | Statewide OH

Gov. Kasich: Shale Drilling is Good, but OH Needs Diversity
April 30, 2012April 30, 2012

Speaking at the Eastern Ohio Development Alliance’s annual meeting last Friday, Ohio Gov. John Kasich said that although he supports shale oil and gas drilling in the Marcellus and Utica Shales in his state, he doesn’t want to put all of Ohio’s economic eggs in one basket. He said the state needs to focus on more than just the energy sector to help elevate Ohio out of its current economic doldrums.

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

NY DEC Chief Says Supportive Towns More Likely to be Drilled
April 27, 2012April 27, 2012

MDN reported earlier this week that certain key New York State senators (and others) were signaling that if/when hydraulic fracturing is allowed to go forward in the state, it may only happen in communities that support it (see this MDN story). We now have further confirmation that indeed that will likely be the case from none other than Joe Martens, the Commissioner of the Department of Environmental Conservation (DEC).

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

Woodstock & Fracking Have One Thing in Common
April 27, 2012April 27, 2012

The Town of Bethel, in Sullivan County, NY, was home to the Woodstock “music festival” in 1969. Bethel is also the latest New York township to ban hydraulic fracturing. Both events have at least one thing in common: They’re both supported by hippies and hippie-wannabes.

Last night, the Bethel town board voted 5-0 to ban fracking before a “crowd” of 70 in attendance:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

New Video about Dimock, PA Tells the Real Story
April 27, 2012April 27, 2012

There’s been no shortage of pejorative media coverage painting the small town of Dimock, PA (in Susquehanna County) as the new Love Canal—a chemical wasteland. The image portrayed in a constant drumbeat by mainstream media, and Hollywood celebrities, is that Marcellus Shale gas drilling has fouled the water in and around Dimock. MDN will not recount the history of Dimock, just do a search on MDN for a myriad of background stories.

What you need to know is that the water is clean (proven clean by multiple tests, the latest of which is from the federal EPA themselves). And what you further need to know is that anti-drillers, in their zeal to find one place, anyplace, they can point to where water was affected by drilling, has unfairly destroyed the reputation of this innocent town.

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Yet Another PA Township “Supports” Act 13 Lawsuit
April 27, 2012April 27, 2012

Wednesday night, Scott Township, PA commissioners unanimously voted to pass a resolution showing symbolic (but no real) support for the PA townships that have sued the State of Pennsylvania over provisions in the new Act 13 Marcellus drilling law. The lawsuit takes exception to state rules replacing local zoning laws that control oil and gas drilling.

Scott is just the latest municipality, in addition to Pittsburgh, Tullytown, Wilkinson, Luzerne, Buffalo, Hanover and other municipalities who have also expressed support, but refuse to actually join the lawsuit (see this MDN story).

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Dominion Energy | Energy Services | Exporting | Industrywide Issues

Japan Negotiates to Buy Marcellus Gas
April 27, 2012April 27, 2012

Japan needs natural gas and they need it badly. After the Fukushima nuclear disaster last year, Japan has shut down 49 of their 50 nuclear reactors. That spells an impending shortage of electricity in the country. One of the ways to make it up is by using natural gas. Natural gas currently costs over $17 per million BTUs (mmBtu) in Asia. The U.S. commodity price of natural gas is currently under $2 mmBtu. So Japanese trading house Sumitomo Corp and Tokyo Gas Co Ltd are in talks with Dominion Resources to import up to 2.3 million tons of liquefied natural gas (LNG) per year for 20 years starting in 2017.

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