Industrywide Issues

  • | | | | | |

    Battle Royale in NY Townships – Support or Ban Fracking?

    Battle RoyaleMany townships in the Southern Tier area of New York State want Gov. Andrew Cuomo and the Department of Environmental Conservation to know they support responsible gas drilling. Tuesday night the town board in Bainbridge (Chenango County) voted to adopt a resolution supporting drilling (if by support you mean let’s wait until the DEC issues its new rules). The towns of Preston and Guilford, also Chenango County, both voted to approve the resolution Wednesday night. The resolution was slated for a vote in both Afton and Oxford townships (again, Chenango County), but MDN does not have details yet on the outcomes there—although it was likely positive.

    A copy of the resolution as adopted in May by the Town of Windsor, in Broome County, NY, is embedded below. That same resolution, more or less, is what the other towns are adopting.

    Read More “Battle Royale in NY Townships – Support or Ban Fracking?”

  • |

    Nationwide Is Not on Your Side – If You Frack for O&G

    If you’re a landowner who leases your land for gas drilling, Nationwide Mutual Insurance Company is definitely not on your side (and you may want to consider changing insurers). They announced yesterday they will not cover any damage related to natural gas drilling and fracking. Their denial of coverage will also apply to landowners who lease their land for drilling and make a claim that arises from an issue related to drilling.

    Frankly, there’s nothing new about homeowner insurance not covering industrial processes—the drillers have their own insurance accidents and damage. But Nationwide’s statement—and the way they are spinning it—shows hostility to the natural gas industry. That’s why you should dump them.

    Read More “Nationwide Is Not on Your Side – If You Frack for O&G”

  • | | |

    Why Would Seismic Testing Happen Inside City Limits?

    An article in The Marietta Times (Marietta, Ohio) does an excellent job of describing the process of seismic mapping recently performed in the City of Marietta. Having a map of underground structures—how the rock formations and layers are arranged—is worth millions to drillers. So they hire companies to create maps.

    Cables are laid along side roadways and a truck moves along “stopping at regular intervals to lower large vibrating metal disks from each truck onto the road surface.” The cables record seismic vibrations and create a 2-dimensional map of structures under the surface.

    The initial 2-D mapping shows what’s happening directly beneath the road. If companies see areas that pique their interest, they then order a 3-D map, a more involved process. But they hardly ever (perhaps never) order 3-D maps for cities because drillers typically don’t want to deal with signing hundreds or thousands of individual landowners over a relatively small area. So the question is, why were seismic trucks doing 2-D mapping inside the city limits of Marietta if no drillers would ever want to drill there?

    Read More “Why Would Seismic Testing Happen Inside City Limits?”

  • | |

    The Economist Says Every Gas Field Should be Like Marcellus

    MDN had to do a double-take. We just read a story in The Economist magazine about the aesthetics of Marcellus Shale drilling. Normally The Economist leans anti-drilling in its coverage of the shale development issue. But this article is complimentary! The article does a good job of describing the drilling and hydraulic fracturing process, and describes how after the drilling is done, there’s hardly anything on the surface that would indicate there was once drilling at that location.

    Here’s the closing few sentences:

    Read More “The Economist Says Every Gas Field Should be Like Marcellus”

  • |

    Fitch Ratings Looks at Major Pipeline Projects in Marcellus

    Fitch Ratings issued a special report on Tuesday titled, “Marcellus Shale Report: Midstream and Pipeline Sector — Challenges/Opportunities.” Fitch is a credit ratings agency so their primary focus is evaluating companies and the risks those companies face that might affect their stock price and credit worthiness. So bear that in mind.

    But the analysts who wrote this special report (see below) do a good job of identifying the major midstream (pipeline) companies in the Marcellus, and a good job of outlining the prospects (and risks) to those companies. Starting on page 4 the report chronicles the major Marcellus Shale pipelines underway, and page 12 shows a chart of the top 10 drilling companies in the Marcellus, complete with estimates of how much natural gas they produce in the Marcellus, and how much of the overall Marcellus acreage they lease. A very handy chart indeed.

    Read More “Fitch Ratings Looks at Major Pipeline Projects in Marcellus”

  • | | | | | |

    NiSource Announces $4B Upgrade Plan for Interstate Pipelines

    Midstream and utility company NiSource is in the news for a second time this week. On Monday, NiSource announced a joint venture with Hilcorp to build new Utica Shale gathering pipelines and a processing plant in eastern Ohio and western Pennsylvania (see this MDN story).

    Yesterday NiSource announced a new project to rebuild and upgrade 12,000 miles of its Columbia Gas Transmission interstate pipelines and compressor stations to the tune of $4 billion over the next 15 years. Much of that work will benefit the Marcellus and Utica Shale region, resulting in more shale gas finding its way to market, according to NiSource.

    NiSource reps, federal government officials and the Mayor of Columbus held a press conference yesterday to talk about this major new initiative by NiSource. Below is the follow-up press release, rearranged by MDN to show the important information first:

    Read More “NiSource Announces $4B Upgrade Plan for Interstate Pipelines”

  • | | |

    Webinar Replay: John Hanger on Gas Drilling and Energy Choices

    John_Hanger_1On July 12, former Sec. of the Pennsylvania Dept. of Environmental Protection presented MDN’s first webinar, titled: The Truth About Gas Drilling and America’s Energy Choices. John spoke of his love of alternative energy sources—especially wind and solar—but he also spoke about the overblown criticism of natural gas drilling. He pointed out there are advantages and disadvantages to every form of energy, and if you say “no” to one form, you must say “yes” to another form.

    Following the webinar John took a number of questions from the MDN audience. It was a lively and informative session. MDN subscribers can replay it below. A copy of the PowerPoint slides is also available for download below.

    Read More “Webinar Replay: John Hanger on Gas Drilling and Energy Choices”

  • |

    DOE National Lab Tackles Question of Fracking Fluid Migration

    NETL logoThe Department of Energy’s National Energy Technology Laboratory (NETL) in Pittsburgh is tackling the thorny question raised by Duke University earlier this week: Can and does fracking fluid (or any fluid) migrate upward through rock layers? The Duke study released earlier this week suggests it’s possible for fluids to migrate from thousands of feet down (see this MDN story) up to water aquifers near the surface. News of the Duke study continues to reverberate throughout the media with hundreds of stories being written and endlessly recycled.

    The NETL will tackle the same question using an active, commercially drilled Marcellus Shale natural gas well in southwestern Pennsylvania. Using a single well won’t provide definitive answers because Marcellus geography varies from region to region—but at least it’s a start. Recall that the Duke study focused on data from six northeastern Pennsylvania counties and their data did not include sampling from active drilling sites.

    Read More “DOE National Lab Tackles Question of Fracking Fluid Migration”

  • | | | | | |

    Ohio DNR Visits Patriot Water Facility in Warren, OH

    Patriot Water in Warren, Ohio is fighting a battle on both the legal and publicity fronts. Yesterday they scored some points in the publicity column by (finally) getting a representative from the Ohio Department of Natural Resources (ODNR) to tour their facility.

    Brief background: Patriot’s facility processes wastewater from hydraulic fracturing, removing the nasty stuff so the water is clean and able to be disposed of through the local Warren municipal wastewater processing plant. But the Ohio Attorney General, Mike DeWine, and the Ohio Environmental Protection Agency rescinded Warren’s permit to accept the wastewater from Patriot, saying Patriot’s technology is not up to scratch (see this MDN story for more background on Patriot’s legal squabble with the OEPA).

    Read More “Ohio DNR Visits Patriot Water Facility in Warren, OH”

  • | | | | | |

    Marcellus to the Rescue: Marcus Hook Refinery to Reopen

    The Marcus Hook Refinery in the Philadelphia, PA area was closed down in April. Owned by Sunoco, it is one of three refineries in the greater Philly area. A few weeks ago MDN told you about a study that Marcus Hook and Delaware County spent $100,000 on detailing potential uses and markets for the refinery (see this MDN story).

    At the time, MDN asked the question if the Marcellus Shale would save the Marcus Hook refinery. Looks like it did. Yesterday, PA Gov. Tom Corbett’s office announced that some of the Marcus Hook Refinery assets have been purchased by Braskem America. Braskem will use it to manufacture polypropylene plastics. The press release says Braskem will secure feedstocks (raw materials) from “multiple sources,” without naming those sources. You can be sure natural gas liquids from the Marcellus and Utica Shale will be a big source—perhaps the main source—for the refinery.

    Read More “Marcellus to the Rescue: Marcus Hook Refinery to Reopen”

  • | | | |

    Sullivan County, NY Township Votes to Ban Fracking

    Another one bites the dust. A township in Sullivan County—the Catskill region of New York State—has voted to ban hydraulic fracturing ahead of the state allowing it (if they allow it). The Town of Highland board voted 5-0 to ban fracking Tuesday night.

    What you don’t hear about so often in the press are all of the towns voting in favor of drilling—or at least in favor of letting the DEC do it’s job and not prejudging the outcome. Anecdotal evidence MDN has heard is that something over 100 townships have voted to ban fracking (most of them not in the Marcellus Shale region), while perhaps 50 have voted to allow the DEC to do it’s job—what anti-drillers view as being supportive of drilling. Most of those are in the Marcellus Shale region.

    Read More “Sullivan County, NY Township Votes to Ban Fracking”

  • | | |

    WV Gov. Tomblin Appoints Members to NatGas Vehicle Task Force

    West Virginia Gov. Earl Ray Tomblin yesterday announced the members of his Natural Gas Vehicle Task Force. Tomblin announced the formation of the Task Force a month ago with the mission of investigating if, and how, the state can convert all of it’s state-owned vehicles to run on natural gas (see this MDN story).

    Yesterday’s announcement names the members of the new Task Force. It’s all all-star cast from some of the country’s biggest drillers and pipeline companies.

    From the Governor’s press release:

    Read More “WV Gov. Tomblin Appoints Members to NatGas Vehicle Task Force”

  • | | | |

    Concerns about Small Wastewater Spill on OH Roadway

    There was a small spill of brine (Utica Shale wastewater) from a tanker truck in Trumbull County, Ohio last weekend. An estimated 100-150 gallons leaked from the back of the truck along a roadway for about 5 miles. The county engineer is concerned about it—the Ohio Environmental Protection Agency says there’s nothing to worry about.

    Read More “Concerns about Small Wastewater Spill on OH Roadway”

  • | |

    New Report Says EPA Fracking Study Methods Need Help

    You need helpA major new report was released yesterday from the Battelle Memorial Institute that reviews the Environmental Protection Agency’s stated plan to study hydraulic fracturing and its impacts on water. The 166-page report (embedded below) says the EPA has it wrong with how they are proceeding.

    The report was funded by the American Petroleum Institute (API) and America’s Natural Gas Alliance (ANGA), perhaps the two largest energy-related associations in the U.S. (ranked by funding). So the obligatory “but it was funded by the industry!” arguments will come out, to be sure. But you can’t argue with the findings in this report. Battelle is an independent non-profit, science and technology research and development organization with an excellent reputation—a reputation they want to keep.

    This is not an industry shill report, but a serious look at how the EPA might better conduct a serious scientific investigation, rather than a sham pretense for an activist government bent on phasing out fossil fuels.

    Read More “New Report Says EPA Fracking Study Methods Need Help”

  • | | | | | | | | |

    Williams Does Second Midstream Deal with Caiman Energy

    Midstream giant Williams Partners continues an aggressive push into the Marcellus and Utica Shale and continues to cozy up with Caiman Energy as well. Yesterday Williams announced it will contribute $380 million toward a new $800 million joint venture with Caiman and several other partners to develop pipelines and processing facilities for natural gas, natural gas liquids and oil in the Utica Shale region of northeast Ohio and northwest Pennsylvania.

    Earlier this year Williams spent $2.5 billion to purchase Caiman subsidiary Caiman Eastern Midstream, giving Williams a major midstream presence in the Marcellus/Utica region in northern West Virginia, southwestern Pennsylvania and eastern Ohio (see this MDN story). The recurring theme for Williams’ latest jv and acquisitions seems to be, “Get thee to the wet gas.”

    Read More “Williams Does Second Midstream Deal with Caiman Energy”

  • | | | | |

    NY Constitution Pipeline Route Change?

    Cabot Oil & Gas and Williams are partnering to build a new $750 million, 120-mile “Constitution Pipeline” to bring Marcellus Shale gas all the way from Susquehanna County, PA to Schoharie County, NY where it would connect to the Iroquois Gas Transmission pipeline and the Tennessee Gas pipeline (see this MDN story).

    But the route the new pipeline takes through New York (see the map below) is being opposed by some area residents and by two Republican state legislators: Assemblyman Pete Lopez and Sen. James Seward. They want the pipeline to “hug” the Interstate 88 corridor instead.

    Read More “NY Constitution Pipeline Route Change?”