Industrywide Issues

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

Binghamton DEC Hearing Draws Big & Loud Crowd
November 20, 2011November 20, 2011

Unfortunately MDN editor Jim Willis was not in Binghamton for the Nov. 17 DEC hearing on the newest revisions to the draft drilling regulations that would finally allow shale gas drilling in the state. However, there was plenty of media coverage of the event, which drew more than 1,000 people to the Forum Theatre in downtown Binghamton.

The Nov. 17 hearing was the second of four scheduled public hearings on the new regulations. The final two will be at the end of November, one in Loch Sheldrake (Sullivan County) and one in New York City.

Reporting on the Binghamton hearing from the hometown Press & Sun-Bulletin:

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Compromise Allows PA Municipalities Some Drilling Oversight
November 20, 2011November 20, 2011

As MDN recently pointed out, in Pennsylvania there is an ongoing tug-of-war between the state and local municipalities over how much local governments can regulate activities like zoning that impact shale gas drilling (see this MDN story). Local governments want the ability to allow or disallow drilling in certain areas. The state says that statewide laws should totally “preempt” local laws to ensure fairness and consistency and to avoid litigation by drilling companies which will cause millions in taxpayer money to defend.

There is a compromise coming in new legislation that will continue to allow local municipalities some control over drilling in their locales, while preserving most of the oversight for the state. It’s not a perfect solution, but both sides of the debate are signaling it may be the best solution they can jointly agree on.

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Regulating Drilling in PA Pits State Against Municipalities
November 15, 2011November 15, 2011

There is a “tug of war” going on in Pennsylvania for who will ultimately control where, and under what conditions, Marcellus Shale gas wells can be drilled. The struggle pits the state against local municipalities. As with many issues surrounding shale gas drilling, this one is complicated.

Pennsylvania has more than 2,500 township and municipal governments across the state—more than any other state—even though there are four other states with larger populations (CA, TX, NY, and FL). Local governments are responsive to the people in their communities.

But when it comes to the issue of drilling, local governments, in being “responsive” are often trampling the rights of local property owners to use their land as they see fit. Local municipalities will say they regulate where malls and shopping centers can be built, where factories can be built, and whether or not land in residential areas can be re-zoned for other purposes, on a case by case basis. Why not the industrial process of constructing a gas well? And they ask the state, “Would you like it if the federal government stripped away your rights to self government? Why do you want to take away ours?”

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Energy Companies | Forest County | Industrywide Issues | Litigation | McKean County | Minard Run Oil | Pennsylvania | Warren County

Drillers Sue US Govt over Allegheny National Forest Delays
November 15, 2011November 30, 2022

According to a lawsuit filed on Monday, the U.S. government is obstructing legitimate and legal gas drilling in the Allegheny National Forest (ANF) in northwestern PA. A court in Erie, PA has been asked to find them in contempt and force them to allow drilling to proceed on a timely basis.

A brief background on the ANF and why the lawsuit was filed:

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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Pittsburgh Councilman Introduces “Toxic Trespass” Legislation
November 15, 2011November 15, 2011

Pittsburgh City Councilman Doug Shields has been a tireless anti-drilling crusader (see previous MDN stories here). Fortunately, he leaves office at the end of December—he didn’t run for re-election. But before he goes, he wants to take one parting shot at the drilling industry.

Yesterday, Mr. Shields introduced “toxic trespass” legislation, which is designed to try and stop drilling in other locations by inferring they may release chemicals into the environment that will find their way to Pittsburgh via rivers and streams and therefore Pittsburgh will sue them out of existence if they get even a whiff of something they don’t like. Nice way to go out Doug…

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Broome County | Hydraulic Fracturing | Industrywide Issues | Meetings | New York | Public Opinion | Regulation

Binghamton DEC Hearing will be Ground Zero This Week
November 14, 2011November 14, 2011

This week will be important for the effort to get shale gas drilling moving in New York State. The state Department of Environmental Conservation (DEC) is conducting a series of four public hearings nominally to accept comments on the most recent changes to the draft drilling regulations, also known as the SGEIS (Supplemental Generic Environmental Impact Statement). MDN says “nominally” because each of the four events will be used by both those for and against drilling to try and show their side has the most support.

One of the four hearings, in Binghamton on Thursday of this week, is likely to be the largest hearing outside of the New York City hearing later this month. MDN has received several email notices from landowner groups in favor of drilling, and from one group opposed. Both say similar things: These hearings are vitally important.

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

Will NY be Too Expensive to Drill in the Marcellus?
November 14, 2011November 14, 2011

Yesterday’s Buffalo News has an excellent analysis for the prospects of shale gas drilling in New York, given New York’s extreme delays and proposed restrictive drilling regulations. MDN is a supporter of drilling in New York and has nothing but best wishes for landowners in our home state. But the stark reality, as we’ve been pointing out, is that “if you build it, they will come” makes for a nice movie, but doesn’t necessarily translate into reality for drilling in NY.

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Accidents | Industrywide Issues | Pennsylvania | Regulation | Susquehanna County

Feds Make a Visit to Dimock PA Families Last Week
November 14, 2011November 14, 2011

The federal Environmental Protection Agency and the Agency for Toxic Substances and Disease Registry visited some of the families in Dimock, PA affected by methane migration last Thursday. The were particularly interested in getting copies of water sample results from entities other than the Pennsylvania Department of Environmental Protection or Cabot Oil & Gas.

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Exporting | Industrywide Issues

Five Applications Filed with DOE to Export Natural Gas
November 14, 2011November 14, 2011

An issue that will be debated in coming months (and years) is whether or not to export some of the natural gas that America has in abundance now that the miracle of hydraulic fracturing has released it from shale formations. Some say it will help the U.S. achieve a better trade balance with other countries once again. Others say exporting will keep prices for natural gas higher than they otherwise would be for consumers.

The Department of Energy (DOE) has so far received five applications from companies that want to create terminals to export liquefied natural gas (LNG) to overseas markets—one of them has been approved. Just six years ago the natural gas industry was doing all it could to import LNG from foreign countries.

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Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Congressman Says Let State Governments Regulate Fracking
November 14, 2011November 14, 2011

Politics in shale gas drilling is an unfortunate fact because the environment has been politicized. But that’s the reality. Anyone who thinks the federal Environmental Protection Agency (EPA) is not a political animal has their head in the sand. From its beginning, MDN has pointed out that the EPA is making a power grab—attempting to regulate oil and gas drilling via the back door by using legislation like the Clean Water Act.

Some on Capitol Hill, like Congressman Bob Latta (R-Ohio) who serves on the House Energy and Commerce Committee, agree. Rep. Latta posted an editorial on the Politico website last night that says, in part:

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Hydraulic Fracturing | Industrywide Issues | Regulation

DOE Releases Final Subcommittee Report on Shale Gas Regulation
November 11, 2011November 3, 2012

The Shale Gas Subcommittee of the Secretary of Energy Advisory Board (SEAB) is a panel of seven experts appointed by Secretary of Energy Steven Chu earlier this year with the task of creating a list of industry “best practices” for shale gas drillers. The SEAB produced an initial 90-day report in August with a list of 20 recommendations (see this MDN story on the report). The SEAB’s second and final 90-day report, in draft form, has just been released and will be voted on next week (a copy is available for download below).

The first report focused on crafting recommendations that would lessen the environmental impact of shale gas drilling so that, according to the SEAB, shale gas drilling can flourish with public support (MDN’s interpretation). But in order to do that, certain best practices and standards must be adopted by federal, state, local and industry participants. This second report focuses on how and when to implement those 20 recommendations.

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Industrywide Issues | New York | Public Opinion | Statewide NY

Sixteen NY Community Groups Unite to Support Gas Drilling
November 11, 2011November 11, 2011

A new organization called Clean Growth Now has formed to support shale gas drilling in New York State. The interesting and newsworthy aspect of this new organization is that it is not drilling industry-backed, but rather made up of 16 community organizations that believe shale gas drilling is safe and will provide an economic and jobs windfall for the state.

From the Clean Growth Now press release issued yesterday:

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Energy Services | Industrywide Issues | Laser Northeast Gathering | Pennsylvania | Pipelines | Susquehanna County

PA Pipeline Allowed to Withdraw Public Utility Application
November 11, 2011November 11, 2011

Laser Northeast Gathering is a 30-mile, $55 million pipeline being built from Susquehanna County, PA to across the border in Broome County, NY. When complete, the pipeline will connect wells in Susquehanna County with the Millennium Pipeline which runs through Broome County. As MDN previously reported, Laser Northeast had filed for public utility status and then eventually withdrew that application when the need for eminent domain was no longer necessary.

The final chapter in that story is now written. The PA Public Utility Commission (PUC) on Thursday voted to officially allow Laser Northeast to withdraw the application they had once submitted.

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

Joe Martens Says NY Will Vote “No” on DRBC Drilling Rules
November 10, 2011November 10, 2011

As MDN reported yesterday, the Delaware River Basin Commission (DRBC) is set to vote on new drilling rules to allow limited drilling in the DRBC jurisdiction on Nov. 21 (see this MDN story). The DRBC has five voting members: New York, Pennsylvania, Delaware, New Jersey, and the federal government.

According to NY State DEC Commissioner Joe Martens, New York will be a “no” vote on the new regulations at that meeting, no doubt to the delight of anti-drilling groups. His reasoning?…

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Hydraulic Fracturing | Industrywide Issues

New UT Study: Fracking Does Not Contaminate Groundwater
November 10, 2011November 10, 2011

The University of Texas is conducting a study of hydraulic fracturing and its impact on groundwater. According to the UT professor leading the study, it shows there is no “direct link” between fracking and groundwater contamination. A final report is due to be published in the next two months. When it becomes available, MDN will bring it to you.

Professor Charles Groat discussed the preliminary findings yesterday in Forth Worth:

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Chesapeake Energy | Economic Impact | Energy Companies | Energy Services | Enterprise Products Partners | Industrywide Issues | Pipelines | Statewide WV | West Virginia

Is Chesapeake’s Ethane Pipeline Deal a Negotiating Tactic?
November 10, 2011November 10, 2011

Last week, MDN reported that officials in West Virginia were angry with Chesapeake Energy over their decision to sign a contract to ship ethane out of the Marcellus region for processing in the Gulf Coast (see this MDN story). Specifically, state Commerce Secretary Keith Burdette said the deal may jeopardize the state’s chances of attracting a cracker plant—a facility that processes ethane into ethylene, the raw material used to make plastics. The chief complaint was that Chesapeake has been part of negotiations to bring such a plant to the region but at the same time were silent about their impending deal with Enterprise Products Partners to lease a pipeline to move ethane out of the area.

Chesapeake has responded to the criticism and says its deal with Enterprise has been “misunderstood.” A recent statement from Chesapeake seems to indicate the deal to ship ethane via pipeline is a negotiating tactic to get the best price for their ethane. Other industry sources are sticking up for Chesapeake and say the deal is certainly not a “cracker killer.”

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