Industrywide Issues

Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Albany Times Union Announces Support for Fracking
June 18, 2012June 19, 2012

Whoa, wait a minute. The editorial board of the very liberal Albany Times Union is (gasp) in favor of limited fracking in New York State as a test. Really? Really.

But of course, they condition it all on prior assurances of safety from DEC and EPA, and they want all sorts of ands, ifs and buts inserted to conduct such a test.

Here’s what they said in a recent editorial (and below, why this is politically significant):

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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Susquehanna County | Williams

The Next Battleground for Shale Drilling: Compressor Plants
June 18, 2012June 18, 2012

As the number of Marcellus gas wells increase in Pennsylvania, so too do the number of pipelines to move the gas and the number of natural gas compressor stations. Compressor stations push the gas along the pipeline until the pipeline connects to a larger pipeline. Compressor stations are the next battleground for anti-drillers who want to plant the seeds of doubt.

For example, 29 permits have been or are being considered for compressor stations in northeastern PA, and of those, nearly two dozen of them are within a 15-mile radius of Dimock, PA. Since 2005, 383 permits have been issued statewide, but not all of them have been or will be built. The issue of contention is air pollution. Each station emits some volatile organic compounds (VOCs) and nitrogen oxides (NOx). How much they emit, and their combined effect in a region, is what is in dispute.

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Earthquakes | Hydraulic Fracturing | Industrywide Issues

NRC Study: Fracking Does Not Cause Earthquakes
June 18, 2012June 18, 2012

Does hydraulic fracturing—the process of forcing water, sand and a few chemicals down the bore hole and into shale formations—cause earthquakes? The National Research Council (NRC), part of the National Academies of Science, says the answer to that would be “no, fracking does not cause earthquakes.” That’s according to a new study just released by the NRC titled “Induced Seismicity Potential in Energy Technologies” (a link to the full study is embedded below).

The study found that out of a sample size of 35,000 oil and gas wells that have been horizontally fracked, earthquakes have been detected—get ready—in one instance. One. Which is statistically dead zero.

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

Enfield, NY Town Board Bans Fracking for it’s Landowners
June 18, 2012June 18, 2012

Another New York town votes to ban fracking for one year. Not that it makes a hill of beans worth of difference. The town board for Enfield, in Tompkins County, New York, voted last Wednesday to ban fracking:

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Economic Impact | Industrywide Issues | Ohio | Statewide OH

Shale Drilling’s Positive Effect on OH Commercial Real Estate
June 18, 2012June 18, 2012

The numbers in Ohio show that the Utica and Marcellus Shale drilling boom is already having a positive affect on the commercial real estate market. Late payments for commercial mortgages and loan delinquency rates have dropped, significantly, in just the past year.

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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Statewide NY

Victory for NY Landowners in Chesapeake Force Majeure Case
June 15, 2012June 15, 2012

In a major victory for New York landowners, Attorney General Eric Schniederman’s office reached a settlement with Chesapeake Energy to allow 4,400+ landowners with a collective 264,000 acres to renegotiate old gas drilling leases that Chesapeake was attempting to extend using the “force majeure” clause. MDN has followed this story for more than a year (see this MDN story from May 2011 for history and background).

As a brief background, a number of New York landowners—many of them in the Southern Tier area of New York—signed gas drilling leases in 2000 with small drilling companies. The leases had a 10-year term. Most of the landowners got $3 per acre as a signing bonus. Those leases, along with leases signed prior to 2000, were bought by Chesapeake in the mid-2000s. In 2009, Chesapeake sent letters to New York landowners invoking the force majeure clause, which is legalese for “we’re extending the contract term due to extenuating circumstances, which we believe is our right to do.” The extenuating circumstance? The moratorium on high volume hydraulic fracturing that was implemented by then-Gov. David Paterson in 2008.

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

NY Gov. Cuomo Speaks Out on Leaked Fracking Plan
June 15, 2012June 15, 2012

Did New York Gov. Andrew Cuomo’s trial balloon plan to allow fracking just burst? Yesterday, the governor was peppered with questions about his unofficially announced plan to allow limited fracking of natural gas wells in five Southern Tier counties and only in communities that want it.

Appearing on an Albany radio program, Gov. Cuomo said:

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

Dueling Rallies in Albany Over Cuomo’s Fracking Plan
June 15, 2012June 15, 2012

Both anti- and pro-drillers staged rallies in Albany, NY yesterday in response to the leaked plan by the Cuomo administration to allow limited hydraulic fracturing of gas wells in five Southern Tier counties.

Perhaps two dozen anti-drilling protestors showed up outside of Gov. Cuomo’s office for their PR appearance before the cameras. An hour later, they went to stand outside of a much a larger crowd of pro-drillers who staged a press conference featuring five town supervisors who were there to say they want drilling in their townships.

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Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

Gov. Corbett’s PR Campaign for $1.7B Cracker Plant Tax Break
June 15, 2012June 15, 2012

Pennsylvania Gov. Tom Corbett officially launched his public relations effort yesterday to get the PA legislature to pass a package of tax credits for Shell to build an ethane cracker plant in the state. The package of tax credits will amount to $1.7 billion over a 25-year period (up to $66 million per year) and will not begin until 2017 at the earliest.

Three of Corbett’s cabinet secretaries held a forum at the Beaver County community college yesterday, near the location of the proposed plant (in Beaver County), to push for the tax credits. When the new plant is built, it will result in 20,000 new jobs throughout the region.

Corbett is making a push to get the legislature to adopt the package by the end of June, before legislators adjourn for summer recess. But many legislators complain they don’t know enough about the plan (yet) to cast a vote either way. This effort by Corbett and his administration is an attempt to bridge that gap.

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Hydraulic Fracturing | Industrywide Issues

Update on NETL Faults & Fracking Study
June 15, 2012June 15, 2012

Earlier this week MDN covered news of a study about to be released by the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) which looks at whether or not fracking fluids can find their way to the surface through faults or cracks (see this MDN story).

Based on the article MDN read, we floated the question, “Are we being set up?” Any time MDN reads about “this is science and incontrovertible and this will settle it once and for all” it sets off red flags—like we’re about to be railroaded.

Fortunately Pam Casey, a reporter with the West Virginia State Journal, read the MDN article and dug deeper. What she found is reassuring:

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Energy Companies | Industrywide Issues | Litigation | New York | Norse Energy | Statewide NY

Norse Says NY Force Majeure Settlement Doesn’t Apply to Them
June 15, 2012June 15, 2012

MDN reported today that New York Attorney General Eric Schneiderman’s office struck a deal with Chesapeake Energy over the issue of extending landowner leases in New York using the “force majeure” clause in the contract (see this MDN story). Norse Energy issued a press release saying essentially that the deal does not apply to them, and their force majeure claims are still in place until overturned by a court.

Here’s the Norse press release:

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Industrywide Issues | Jobs | Statewide WV | West Virginia

WV Oil & Gas Employment Numbers: Underreported by 14K?
June 15, 2012June 15, 2012

MDN reported two days ago that WorkForce West Virginia reported that direct jobs held by West Virginians in the oil and gas industry in the state had actually decreased from 2010 to 2011 (see this MDN story). We observed the total number of jobs cited, 2,179 in 2011, seemed really low, and perhaps inaccurate. WorkForce WV says that’s the total number of “direct” jobs held by West Virginians so we took them at their word.

But what’s a “direct” as opposed to an “indirect” (but created because of the drilling industry) job? Seems we’ve hit some semantic issues here. According to the Independent Oil and Gas Association of West Virginia, the actual number is something over 16,000 jobs:

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Energy Companies | Energy Services | Industrywide Issues | Lycoming County | National Fuel | Pennsylvania | Pipelines | Seneca Resources

Trout Run Pipeline Goes Operational, Seneca Wells Connect
June 15, 2012June 15, 2012

National Fuel Gas Midstream’s new Trout Run Gathering System (Lycoming County, PA) came online May 30 and is now delivering natural gas to the Transcontinental Gas Pipe Line (Transco). Because the new pipeline is now operational, Seneca Resources has brought online four new wells. As of a few days ago, the wells were producing a combined 45 million cubic feet of gas per day.

National Fuel Gas’ press release:

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Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

NY Chefs Form Group to Oppose Fracking
June 15, 2012June 15, 2012

This is interesting—and odd—news: A bunch of chefs in New York City (where else?) have formed a group to support a ban on the fracking that if it happens, will happen four hours from where they live and work. Why? Uh yeah, good question.

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About MDN | Hydraulic Fracturing | Industrywide Issues

MDN Attends Screening of ‘Truthland’ Movie
June 14, 2012June 14, 2012

It was MDN’s pleasure to attend a screening of the newly released Truthland movie last evening at the Susquehanna Valley High School in Conklin, NY. Truthland is a short film, about 34 minutes in length, that takes as its mission the debunking of Josh Fox’s well-known movie Gasland.

The star of Truthland is a Pennsylvania woman by the name of Shelly DePue. She and her husband Phil and their children live on a farm in northeastern PA—land that’s been in Phil’s family for the past 120 years. They leased their land for shale gas drilling several years ago, and then along came Gasland with wild claims that fracking is hugely dangerous. The movie raised red flags and questions for Shelly and sent her on a journey to find out the truth (or as it turns out, half- and un-truth) about Gasland. This movie (watch it below) chronicles her quest to get her questions answered.

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

Swift Response to Cuomo’s NY Fracking Plan
June 14, 2012June 14, 2012

As MDN predicted yesterday, the initial reaction of anti-drillers in New York that Gov. Cuomo is considering limited fracking in the state has been negative (see this MDN story). They needn’t worry, and once they figure it out, they’ll be happy with Andy’s latest plan because it gives them an excuse to protest and rabble-rouse at town board meetings for the next two years. The fight is going local in New York.

The Albany Times Union hints that Cuomo’s “announcement” of his plans for fracking—which was leaked to the New York Times yesterday—is a trial balloon to gage public reaction to the idea that he would allow drilling in five (MDN calls it the “Lucky Five”) Southern Tier counties of New York for a couple of years to see how it goes.

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