Industrywide Issues

Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

WV Legislator Offers Forced Pooling for Higher Severance Tax
January 6, 2012January 6, 2012

In December of 2011, West Virginia passed new Marcellus Shale drilling laws raising certain fees and putting new requirements in place (see this MDN story). The drilling industry, while saying it was not a perfect law, in the end supported it. But there was on thing the new law did not address that the industry wants to see: forced pooling. That issue is once again being discussed for possible action in the legislature this year.

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Economic Impact | Energy Services | Industrywide Issues | Jobs | Processing Plants | Sunoco Logistics

Southern NJ Refinery May Reopen Thanks to Shale Fracking
January 6, 2012January 6, 2012

A closed refinery in West Deptford Township (Gloucester County), NJ may soon reopen thanks to hydraulic fracturing. The refinery, owned by Sunoco, is looking at two possibilities: Refine oil from the Bakken Shale region of North Dakota; or convert the refinery into a processing plant to move and store ethane from the Marcellus Shale region.

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

NY Gov. Cuomo Dumps Reference to Fracking in Big Speech
January 5, 2012January 5, 2012

Yesterday, all eyes were on New York Gov. Andrew Cuomo and his second “State of the State” address, delivered in Albany. The popular governor has walked a tightrope on the issue of hydraulic fracturing, but after yesterday’s speech, MDN wonders if he’s fallen off that tightrope.

Since his inauguration in 2011, Gov. Cuomo has seemed to be on the side of allowing gas drilling, but then, good politicians “seem” to be on everyone’s side at one point or another. Gov. Cuomo was due to address the issue of fracking in yesterday’s speech. In fact, there’s a short 125 words dedicated to it under the subtitle of “Hydraulic Fracturing in the Southern Tier.” The interesting thing is, he left that section out when he delivered the speech—he never uttered the words. Here’s what he was going to say:

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Alternative Energy | Economic Impact | Industrywide Issues

Solar Panels Can’t Compete with Cheap Shale Gas
January 5, 2012January 5, 2012

An article published today by NPR (no less) exposes the simple truth about solar energy: It just can’t compete with shale gas economically.

The article recounts the experience of a Pennsylvania family who installed 21 solar panels with government subsidies (that is, the government sliding their sticky fingers into your pockets to help pay for it). The end result? Even with taxpayer subsidies, the payback period for solar energy is 17 years—the lifetime of the system. At best it’s break-even, but in reality, it actually costs you more money than other forms of energy.

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Accidents | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Talisman Energy | Tioga County (PA)

Talisman Fined for Drilling Accident from January 2011
January 5, 2012January 5, 2012

Nearly a year after an accident which happened during hydraulic fracturing of a gas well in Tioga County, PA, the State Department of Environmental Protection (DEP) has fined Talisman Energy $51,478. From a DEP press release issued yesterday:

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Delaware County (PA) | Economic Impact | Energy Services | Hydraulic Fracturing | Industrywide Issues | Jobs | Pennsylvania | Preferred Sands

Philly Frack Sand Company Expands, Buys WI Company
January 5, 2012January 5, 2012

Preferred Sands, a privately-held company headquartered in the Philadelphia suburb of Radnor, PA, has just bought out another sand company—Winn Bay Sand, located in Blair, Wisconsin—for $200 million. Preferred Sands is a frack sand and proppant company launched in 2007. It’s the largest frack sand producer in Canada, and one of the top three in the U.S.

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Industrywide Issues | Pipelines

Teamsters Marcellus Pipeline Workers Walk Out on Strike
January 4, 2012January 4, 2012

Some 200 hundred Teamsters union members working on Marcellus Shale gas pipeline construction have walked out on strike in Pennsylvania and West Virginia, and the strike could grow to more than 700 workers in the near future, according to a Teamsters press release (see below).

At issue is a contract up for renewal with the Pipe Line Contractors Association (PLCA). The PLCA wants to let workers provide for their retirement benefits using 401(k) plans instead of a traditional defined-benefit pension plan. A 401(k) provides for individual investments in stocks or mutual funds, and the Teamsters say that Wall Street investments are too risky for their members.

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Will New PA Drilling Law/Impact Fee Pass in 2012?
January 4, 2012January 4, 2012

Although the Pennsylvania House, Senate and governorship are all controlled by Republicans (for the first time in many years), they have not yet agreed on new legislation that puts stricter environmental controls in place over shale gas drilling in the state. The pending legislation, introduced last year after Gov. Tom Corbett appointed an advisory commission to propose new regulations, also includes an impact fee assessed on each new well drilled.

PA Senate President Pro Tempore Joe Scarnati believes all parties to the discussion are very close to agreement and hopes the legislation will be passed by early February, before it can get bogged down in election-year politicking.

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Energy Services | Enterprise Products Partners | Industrywide Issues | Pipelines | Utica Shale

New Ethane Pipeline from Marcellus/Utica to TX Now Official
January 4, 2012January 4, 2012

In October 2011, Enterprise Products Partners announced they were considering building a 1,230 mile pipeline to transport ethane from the Marcellus and Utica Shale regions in Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast (see this MDN story). Shortly after the announcement, Chesapeake Energy signed on to be the first customer for the new pipeline, if it’s built (see this MDN story).

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

EPA Says Gaps Exist in Dimock, PA Water Tests
January 3, 2012January 3, 2012

The federal Environmental Protection Agency (EPA) is once again stirring up trouble in Dimock, PA by “reopening” a review of Dimock Township water supplies after recent tests from a private testing service hired by Cabot Oil & Gas turned up “gaps” in the data that the EPA wants to explore. This is less than a month after the EPA sent a letter to residents, on Dec. 2, telling them the same test results showed well water in the area “does not present an immediate health threat to users” (see this MDN story for a copy of the letter).

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

Anti-Frackers in NY Target Cuomo with Home Rule Legislation
January 3, 2012January 3, 2012

In the ongoing struggle to start gas drilling in New York State, those who oppose it, including State Senator James Seward of Oneonta (a RINO), are trying a new tactic. That new tactic is to take the fight local, in town by town, by using “home rule” laws. But they have a hurdle to jump first: New York State law currently does not permit local municipalities to regulate oil and gas drilling.

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Earthquakes | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Trumbull County | Wastewater

Youngstown Earthquake Update
January 3, 2012January 3, 2012

John Armbruster, a seismologist from Columbia University’s Lamont-Doherty Earth Observatory in Palisades, NY is one of the researchers investigating a string of 11 earthquakes near Youngstown, OH, the most recent of which occurred on New Year’s Eve in the afternoon. Armbruster says a local injection well, which injects wastewater from shale gas drilling under high pressure deep into the ground, is “almost certainly” the cause of the earthquakes.

As MDN pointed out yesterday, injection wells are not fracked gas wells (see this MDN story). But some politicians keep trying to tie the two together. A spokesman for Ohio Gov. John Kasich, Rob Nichols, does a great job in pointing out the difference:

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Industrywide Issues | Kanawha County | NG Vehicles | West Virginia

WV County to Invest $50K in NG Vehicle Conversion Center
January 3, 2012January 3, 2012

Kanawha County, WV wants to become a leading location to convert vehicles to run on natural gas, and County Commission President Kent Carper plans to use $50,000 of county money to make it happen.

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Economic Impact | Energy Companies | Industrywide Issues | Ohio | Processing Plants | Shell | Statewide OH | Statewide WV | West Virginia

Ohio Offers Shell Cracker Plant $1.4B in Tax Incentives
January 2, 2012January 2, 2012

Competition to attract an ethane cracker plant is heating up. West Virginia has made no bones that they intend to be the winners of the investment that will be made to build an ethane cracker plant to be built by Shell. The plant will cost upward of $2 billion and will create thousands of jobs to build the plant, operate the plant, and just as importantly, in the industries that will locate near the plant once it’s operational. It’s an economic jackpot worth $5 billion or more, and those who are in the game to attract it are in it to win.

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Earthquakes | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Trumbull County | Wastewater

Youngstown Earthquake and Fracking: Is There a Connection?
January 2, 2012January 2, 2012

A 4.0 earthquake in the Youngstown, OH area on Saturday afternoon is thought to be connected to a local injection well. MDN has chronicled previous episodes of earthquakes thought to be connected with injection wells in Arkansas and Texas. Saturday’s earthquake was the 11th in the Youngstown area in recent months, and by far the strongest. The theory is that fluid, which is pumped nearly two miles underground under very high pressure, had migrated to a nearby fault and is causing the fault to shift.

Until it can be determined what, exactly, is happening, all further injection of fluid into the well has been stopped. In fact, fluid injection had stopped a day earlier, on Friday, before Saturday’s quake. But pressure in the well would remain high for a period of time, likely leading to the 4.0 quake.

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

The Real Story Behind Binghamton’s Fracking Ban
January 2, 2012January 2, 2012

MDN recently covered the vote to enact a two-year moratorium on hydraulic fracturing in the City of Binghamton (see MDN stories here). It took some time, but we finally received a copy of the actual legislation that was enacted. The legislation is embedded below, along with all of the associated paperwork that goes with it.

Tom Shepstone, head of Energy in Depth’s Northeast Marcellus Initiative, was also at the Binghamton City Council public hearing and the vote that followed. Tom has written an excellent article titled, “Pulling the Curtain Back on the Binghamton Ban Vote.” MDN recommends you read it for a proper understanding of just what went on behind the scenes.

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