Industrywide Issues

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    Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY

    Ingraffea_Anthony Nearly one week ago, on March 31, MDN attended the kickoff meeting of New York Residents Against Drilling (NYRAD) at the Vestal Public Library in Broome County, NY. No, MDN is not anti-drilling! We attend to listen and learn. The drilling debate is increasingly political in tone. Those of us who support drilling need to listen to those in our communities who oppose it—as a courtesy, to be sure we have not missed important information that informs our own opinions, and so we understand our opponents’ arguments in this debate—to be able to intelligently respond to their (often inaccurate and overhyped) accusations.

    The meeting room at the Vestal Public Library was filled to capacity for the meeting with about 120 people attending. Local news media was there, as well as cameras from (presumably) NYRAD themselves. MDN observation: As was the case when DISH, TX Mayor Calvin Tillman recently visited, there were a number of balding men with gray-haired ponytails in the audience. MDN continues to posit the theory that many 60s hippies have found a new cause célèbre that now energizes them—gas drilling.

    The meeting was opened by a NYRAD official who introduced the evening’s main speaker, Professor Anthony Ingraffea. Dr. Ingraffea is a professor of civil and environmental engineering at Cornell University. His Ph.D. is in rock fracturing mechanics. He has done twenty years of research on hydraulic fracturing for companies like Schlumberger, Exxon and the Gas Research Institute. If anyone knows how rock fracturing works, it is Dr. Ingraffea. I eagerly anticipated what he would say about hydraulic fracturing and whether or not the process contaminates water supplies, a commonly leveled charge by drilling opponents.

    Dr. Ingraffea is an accomplished speaker. He is equal parts comedian and expert, and he knows how to “work a crowd.” I can easily imagine that he’s a favorite professor at Cornell, one whose classes fill quickly. In his opening remarks he admitted he feels passionately about the issue of drilling in New York State, and that he is opposed to it. He opened his talk with a technique often employed by those who are anti-drilling. He mentioned he loves fishing for trout in New York’s streams and he asked the audience a question: “Would you like to keep fishing in New York State?” The implication is that if drilling begins, trout fishing is finished. It’s a non sequitur—a statement that does not follow from the premise. In the course of his presentation he never once connected any dots that drilling activity would lead to poisoning of streams and the end of trout fishing. This was a tip-off that the evening might disappointingly hold more emotional statements rather than factual statements. Unfortunately, that’s exactly how it turned out.

    Read More “Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY”

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    Will Soil be the New “Water” in the Fight to Stop Marcellus Gas Drilling in NY State?

    MDN finds it necessary to periodically post disclaimers such as the following: We think drilling can be done safely, but we must remain vigilant. The more we know about drilling, the more we are convinced it is a good thing for the economy and the nation’s energy future. We are not anti-science, we’re not blind, we do care about our neighbors and we welcome opposing opinions. No one wants water supplies to be poisoned, and no one wants enjoyment of the great outdoors to be spoiled by drilling activity. And it doesn’t have to be that way if drilling is done right.

    With that said, the other side of the drilling debate seems to stop at nothing to instill irrational fears into the general population under the guise of science. Put the name of a prominent educational institution next to a committee or group, invoke the name of someone with a Ph.D., and viola, instant credibility. And if you dare say, “but the Emperor has no clothes” out loud, you’re shouted down as an industry shill or accused of being greedy at others’ expense. Such loving and caring people those who disagree with us.

    Since “your water will be poisoned” doesn’t seem to be getting sufficient traction these days as a scare tactic, we now find out that soil is “sensitive” (bet you didn’t know that!) to drilling activity:

    Researchers have developed the Cornell Soil Health Test to evaluate soil response to management on different types of land. It’s intended to assess changes due to gas drilling work.

    The construction necessary to extract natural gas from the Marcellus Shale in southern New York could affect the soil around drilling sites and pipeline right-of-ways, says a Cornell soil expert who has helped develop a new soil health test to assess such impacts.

    “Soil is sensitive to heavy construction, and while there are a lot of construction standards and practices, there isn’t really a standardized way to measure construction impacts on soil behavior,” said Robert Schindelbeck, a Cornell extension associate in crop and soil sciences and member of the Cornell Soil Health Team.

    To fill in that information gap, Schindelbeck and his team have developed the Cornell Soil Health Test (CSHT), a set of tests designed to evaluate soil response to management on different types of land.*

    *PhysOrg.com (Apr 1) – New test assesses gas drilling effects on soils

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    T. Boone Pickens Talks About the Marcellus, Natural Gas, and America’s Energy Future

    The Philadelphia Inquirer recently interviewed T. Boone Pickens, the famous Texas oil billionaire and now “energy evangelist,” out to help chart a new course for energy in America. One of the main points in his Picken’s Plan is to use natural gas as a transition fuel to replace the country’s dependence on foreign oil. Mr. Pickens is less than impressed with President Obama’s recent decision to lift a drilling ban in certain areas of the North Atlantic. The problem, according to Pickens, is there are no appreciable oil reserves in the locations where the ban has been lifted.

    In the interview, Mr. Pickens had some interesting comments about drilling in the Marcellus Shale, including:

    Pickens told New York listeners he was mystified by the uproar gas drilling had caused in the Marcellus Shale region, where environmentalists oppose hydraulic fracturing (fracking), an extraction technology involving high-pressure injections of sand and drilling fluids into a well. The EPA recently announced it would study fracking.

    “You’ve been fracking wells in Texas and Oklahoma for 50 years,” Pickens said. “I’ve never heard anybody complain about your damaging the water. We’re just amused that people in Pennsylvania and New York are crying about messing up their water.”

    On the topic of electric vehicles:

    Pickens said he had nothing against electric vehicles and hybrids – he just thinks it will take too much time for them to penetrate the market of 220 million vehicles in America to have much effect on petroleum consumption.

    And electric vehicles don’t enter into the equation when it comes to heavy trucks, the biggest consumers of motor fuel; there is currently no commercial battery-driven vehicle capable of powering a tractor-trailer rig.

    “If you replace eight million 18-wheelers with natural gas, you have cut OPEC in half,” Pickens said.

    Don’t you just love a plain talking, truth-telling Texan! Finally, one of his favorite and now oft-repeated phrases:

    “Natural gas. It’s cleaner, cheaper, and it’s ours.”

    *Philadelphia Inquirer (Apr 4) – Pickens: Drilling isn’t the answer

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    Are the Shale Cuttings Being Dumped at the Chemung County Landfill Radioactive?

    Part of the process of drilling a well includes disposing of the material that comes out of the well, including “cuttings” and mud—i.e., leftover dirt and rock. A “controversy” is brewing in Chemung County, NY where the county landfill is accepting cuttings from drillers over the border in the Pennsylvania Marcellus Shale. The problem? Sometimes shale cuttings have elevated levels of radioactivity. Those opposed to drilling are playing on people’s fear of the word “radioactive” hoping it will shut down the shipments of shale cuttings to the landfill. (Those shipments, by the way, are generating a nice revenue stream for Chemung County.)

    Anyone living in New York’s Southern Tier or Northeast Pennsylvania knows when buying a house you have the basement tested for radon—a naturally occurring radioactive gas that exists in high concentrations in some (not all) locations. Radon comes from the ground. Far below the ground radon gas exists, but also radium and even uranium. Radon and radium are both isotopes of decaying uranium. When you drill one to two miles under the earth, the cuttings that come out may have high concentrations of radioactivity (mostly radium). It’s not a good idea to dump highly radioactive material, naturally occurring or not, in a landfill. No argument on that count. But! What is a “high concentration?” Can it be treated if it is high? And, do cuttings usually have high radioactivity as a general rule?

    There is an easy answer here. Determine what levels are safe, and then test incoming loads of cuttings to be sure they don’t violate that standard. That’s just what Chemung County is in the process of doing. The system works—no one wants a health hazard for current and future generations.

    Read about the cuttings “controversy” here: Elmira Star Gazette (Mar 31) – Questions raised as landfill seeks to increase intake of Marcellus drilling waste

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    Will Gov. Paterson’s Political Troubles Delay Drilling in New York State Until 2011?

    Bloomberg, a left-leaning (anti-drilling) news organization published a story about the seemingly eternal question of “When will drilling begin in New York?” with reasoning that goes like this:

    (A) New York Gov. Paterson is more or less pro-drilling and wants to see it start soon.

    (B) Gov. Paterson has run into political troubles, “probes” of his conduct are ongoing, so he’s decided not to run for re-election. He’s damaged goods.

    (C) The Department of Environmental Conservation, fearing political turmoil and upheaval, and perhaps reprisals, will not go forward with drilling until after the election in November (at the earliest).

    The Bloomberg article gives some background details about drilling in New York State for those who are new to the debate—all of it with an anti-drilling flavor. But some good background details nonetheless. May be worth a read if you’re so inclined:

    Bloomberg (Mar 31) – Gas Drillers’ New York Hopes Fade on Paterson Woes

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    Six Short-Line Railroads in Central PA Report Business is Up 40 Percent Because of Marcellus Drilling

    MDN previously reported on two short-line railroads that have seen their prospects dramatically improve with Marcellus drilling activity in Pennsylvania—the Wellsboro & Corning Railroad and the Reading & Northern Railroad. You can now add six more short-lines to the list—all of them owned by the North Shore Railroad Company.

    A system of six railroads in northcentral Pennsylvania, including the Lycoming Valley Railroad Co., is enjoying a 40 percent increase in business over last year’s first quarter, said chairman and CEO Richard Robey.

    “We have seen a substantial increase in business related to the Marcellus Shale gas well drilling,” Robey said Wednesday.

    Before that, the recession had sliced the railroads’ business by nearly 20 percent, as it hauled fewer loads of iron and steel products and scrap, food stuffs and plastics to manufacturers, he said.*

    Once again the main product being hauled is sand, which is mixed with water and chemicals and injected into well bores as part of the process to free trapped natural gas from the shale.

    *Charleston Daily Mail (Mar 31) – Railroads booming with Marcellus Shale business

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    Delaware River Basin Commission May Become Roadblock for Drilling in Wayne County, PA and Other Watershed Counties

    The City of Philadelphia is voicing their concerns to the Delaware River Basin Commission (DRBC) about Stone Energy’s request to hydraulically fracture two previously drilled wells in Wayne County, PA. Stone has also made a request to the Commission to withdraw up to 700,000 gallons of water from the West Branch of the Lackawaxen River in Mount Pleasant Township for drilling. Philly’s 17-member City Council voted unanimously to ask the DRBC to not approve the drilling permits until an environmental impact study can be done first.

    An environmental impact study, an intensive and time-consuming endeavor, would determine whether natural gas drilling poses a legitimate threat to the Delaware River watershed, a 13,539-square-mile area that encompasses nearly all of Wayne County and is known for its pristine water quality and world-class trout waters.

    Commission spokesman Clarke Rupert said Monday the regulator is considering conducting such a study. A decision on a $250,000 appropriation request by the commission is not expected until late 2010.*

    In addition to permission from the State Department of Environmental Protection, drillers in the Delaware River Basin watershed area also need permission from the DRBC before they can drill. If the DRBC is not going to make a decision about whether or not to spend $250K on a study “until late 2010,” and if that study is a “time-consuming endeavor,” that means Stone’s request to drill will not be approved until sometime in 2011 at the earliest.

    If you’re a landowner (or driller) in Wayne County, or in other counties located in the Delaware River Basin, you may be in for major delays before drilling begins. Let’s hope the DRBC speeds the process along.

    *Water World (Mar 30) – Philadelphia dives in to gas drilling issue in Wayne County

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    Citizens Committee in Mt. Pleasant, PA Draft Drilling Ordinances for Their Community

    A citizens committee in Mt. Pleasant Township, PA (Washington County) has developed a draft zoning ordinance that will dictate what drillers in their township can, and cannot, do. From a news article:

    The citizens advisory committee presented a final draft on its proposal for a zoning amendment governing oil and gas activities.

    The committee, headed by Dencil Backus, is made up of about a dozen residents who have studied other zoning ordinances to find suitable regulations that would address the activity in Mt. Pleasant. They have looked at ways to address noise, light, odors and buffers in addition to where certain activity can take place.

    In studying the matter, the committee has taken the approach that gas drilling into the Marcellus Shale should take place but not at the expense of the landowners, township or residents’ quality of life.

    The rough draft still has to be reviewed by the supervisors and solicitor. From there, [Township Supervisor Larry] Grimm said, it will be passed on to the township and Washington County’s planning commissions for their approval.*

    *Pittsburgh Observer-Reporter (Mar 24) – Meeting recap

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    Another Cool Idea from Kane, PA – Turn Old Schools into Marcellus Shale Training Centers

    Must be something in the water in Kane, Pennsylvania. They just keep having great ideas! Not long ago we learned that the Kane Borough Sewer Authority is going sell (for money!) sewer water to drillers in the Marcellus, which will create a nice, new revenue stream for the township. Now they’re talking about possibly converting empty school buildings into training centers for those who will need job training to work in the Marcellus Shale.

    With Kane located in the middle of a key Marcellus Shale gas location, could its vacant schools provide sites for training or other services for the well-drilling bonanza?

    This question was explored Thursday by the Ad Hoc Committee that is looking at options for utilizing the vacant Mt. Jewett Elementary School and the soon-to-be vacant Chestnut Street Elementary School in Kane.

    Dr. Maryann Anderson, superintendent of the Kane Area School District, said the companies involved in drilling Marcellus Shale gas wells “need to have a ready workforce.”

    It was suggested that perhaps the vacant schools in Kane and Mt. Jewett could house training centers for the companies that need workers for various jobs associated with the Marcellus wells.*

    The great ideas just keep coming—from Kane!

    *The Kane Republican (Mar 26) – Could schools provide services for area drilling boom?

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    Another Short-Line Railroad Revived by Marcellus Shale Drilling

    Chalk up the resurrection of another short-line railroad to drilling in the Marcellus Shale. As MDN previously reported, the Wellsboro & Corning Railroad tripled its cargo traffic in just a few short years from drillers who need carloads of sand. We now have word of a rail line brought back from the dead in Luzerne County, PA due to Marcellus drilling activity:

    DURYEA – Investment spurred by Marcellus Shale natural gas exploration has transformed an antiquated, weed-ridden rail yard just north of Pittston into a state-of-the-art transloading terminal teeming with rail and trucking activity on an almost daily basis.

    Over the last year, Reading & Northern Railroad Co. sunk $100,000 into Pittston Yard, laying new track to accommodate 100 new rail cars and constructing a facility to store and hold up to 800 cars of sand to be used in hydraulic fracturing, or “fracking,” operations at Marcellus Shale drill sites throughout Northeastern Pennsylvania, said Reading & Northern President Warren A. Michel.

    “The reason for our success is that we are the largest facility in the region capable of handling hundreds of rail cars of sand. We now have 130 (sand) rail cars at the yard and we’ll be expanding substantially over the next six months,” Michel said.*

    *Wilkes-Barre Times Leader (Mar 26) – Old Duryea railroad yard taking on new life

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    Binghamton Press & Sun-Bulletin Runs Wall-to-Wall Coverage of Marcellus Drilling Debate

    The Sunday, March 28 Binghamton Press & Sun-Bulletin (Broome County, NY) devoted a number of pages to the issue of drilling in the Marcellus Shale. The chief writer for the P&SB on these matters, Tom Wilbur, is anti-drilling, and it shows in his articles. As people on the anti-drilling side of the debate often do, they resort to unsubstantiated “facts” and vague nightmare scenarios. Today’s articles were no exception.

    On the front page we have the following articles:

    Marcellus Shale: Is it safe to drill?
    An abridged (and mostly one-sided) history of the shale gas drilling debate in the Southern Tier region of New York and Northeastern PA. Wilbur identifies some of the issues being debated, with the obligatory mention of Dimock, PA and the the isolated (only?) case of a driller who didn’t follow procedure and methane (not chemicals, but natural gas) migrated into drinking water supplies for 12 families. Dimock is the rallying cry for many who oppose drilling. He ends the article with the vague threat that anti-drillers will tie up the right to drill with legal harassment for as long as they possibly can. I believe him on that one.

    Landowners face fight over NYC watershed
    Politicians in New York City are making political hay out of the prospect of drilling with statements that drilling anywhere in the Catskill watershed area must be prevented at all costs because if the water supply for NYC is contaminated, they would have to install filters costing into the billions. The politicians from NYC want horizontal drilling banned in New York State as a preventative measure. And they’re threatening to tie up drilling with lawsuits. No one wants to pollute the City’s water supply! And no one will. What’s conveniently left out of the story by Wilbur is the fact that there is only one company, Chesapeake Energy, with any leases signed in the watershed, and that’s for 5,000 acres. Oh, and Chesapeake voluntarily said they would not drill in the watershed.

    Read More “Binghamton Press & Sun-Bulletin Runs Wall-to-Wall Coverage of Marcellus Drilling Debate”

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    Binghamton Natural Gas Summit: Millennium Pipeline President Richard Leehr

    richard-leehr-millennium One of the speakers at the Natural Gas Development Summit held in Binghamton on March 18th was Richard Leehr, president of Millennium Pipeline (MP), a major natural gas pipeline running from Western New York State almost to New York City. What follows are MDN’s notes from his presentation. Unfortunately Millennium has a policy against sharing their PowerPoint slides on the web (we asked and were turned down). It’s unfortunate because there were a number of good slides that would be of interest to landowners. However, MDN located two PDF maps showing the MP and its interconnect points with other pipelines, and a pipeline system map for Upstate New York and the Northern Tier of Pennsylvania (see bottom of this post for the links).

    Dick Leehr started his presentation with a “thank you” to landowners for their patience and inconvenience during the recent construction of the pipeline. The MP has its home office in Pearl River, NY, almost on the border with New Jersey and not far from metro New York City. The MP is an underground steel 30-inch diameter pipeline with 1 inch thick walls. The steel is coated and should last at least 100 years.

    The MP has the capacity to move 1/2 BCF (billion cubic feet) of natural gas over the entire length of the pipeline per day. On January 4th, the MP hit its current high in delivery with 714,000 dekatherms.

    Mr. Leehr said to think of pipelines as Interstate Highways. Shippers contract or “reserve” capacity on the pipeline. The pipeline picks gas up at one point and delivers it to a different point specified by the customer. Pipelines are among the safest forms of energy transportation in the country according to Leehr.

    Read More “Binghamton Natural Gas Summit: Millennium Pipeline President Richard Leehr”

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    SRBC Fines Southwestern Energy $50K for Lack of Proper Approvals

    Although the details are somewhat slim in the newspaper account, the known facts are that Southwestern Energy started construction on a well conductor pipe at a site in Wyalusing Township (Bradford County, PA) in early January, before the Susquehanna River Basin Commission (SRBC) had given its approval for said construction—something required by law. So the SRBC slapped them with a fine:

    Under a settlement agreement between Southwestern and the commission, which was approved by both sides, Southwestern was required to make a $50,000 “payment in lieu of a penalty” to the commission.*

    MDN firmly believes drilling companies need to be responsible and follow the rules, especially since the issue of drilling has been so distorted by anti-drilling propaganda. On the other hand, was this just an oversight on Southwestern’s part? Did someone not get the paperwork filed properly? Who knows. It does seem to be a case of “Simon Says” or “Mother May I?” Since the SRBC didn’t give the go-ahead, Southwestern was fined. Now that the paperwork is filed, have they gone ahead with construction at the site? Did the SRBC find any problems with the application once it was reviewed?

    So, is SRBC’s action vigilant oversight of the public interest? Or a shakedown? You decide.

    *Towanda Daily Review (Mar 24) – Southwestern Energy fined $50,000 for violation in Wyalusing Township

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    Lackawanna College, PA College of Technology Offer Programs to Train Marcellus-Related Workers

    Colleges in Pennsylvania are adding programs to train workers for Marcellus Shale jobs. And a lot of workers will be required. MDN wrote about the presentation by Larry Michael (Pennsylvania College of Technology, PCT) and James Ladlee (Penn State Cooperative Extension) at the Binghamton Natural Gas Development Summit and their study that says every well drilled translates into 12 full-time jobs. Larry and James helped establish the Marcellus Shale Education & Training Center at PCT in Williamsport, where they are training students for a variety of careers:

    Careers include welders, construction workers, drivers and machine operators and fabricators.Tracy Brundage, [PCT’s] managing director of the Workforce Development and Continuing Education programs, said that as the landscape of the Northern Tier changes, so too do course offerings at the college.

    She said input from energy companies has been influential in the design of 21 new courses.*

    In Scranton, Lackawanna College established an applied science degree in Oil and Gas Production Technology program in December 2008.

    To prepare potential employees for [Marcellus-related gas] jobs, Lackawanna College offers an associate’s degree in natural gas technology and is developing an operating and maintenance degree program in compression technology that could debut next fall.

    In addition, the college will soon start giving accounting students at its Towanda Center the option of customizing their degree to prepare them to work in the accounting side of the natural gas industry.

    Last week, Chesapeake Energy donated $50,000 to help Lackawanna College expand its Natural Gas Technology Program at its New Milford Center campus in Susquehanna County. The college plans to use the money for capital-equipment costs in fitting out their new facilities for the program that began last fall.*

    As drilling in the Marcellus Shale continues to expand in Pennsylvania (and when it finally begins in New York), many thousands of new jobs will need to be filled by local people. And those people will need to be trained. Forward-thinking colleges and technical schools are expanding now to meet the demand.

    *Wilkes-Barre Times Leader (Mar 24) – Some colleges add programs to train workers

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    Three Upstate Landowners on New York City Public Radio Discuss Drilling in the Marcellus

    An interesting radio segment from WNYC Public Radio. Leonard Lopate conducted an interview with three Upstate landowners. From the program description:

    We’ll look into the controversy over drilling for natural gas in Marcellus shale in Upstate New York, and discuss the challenges landowners face when deciding whether to lease their land to gas companies, the role of landowners coalitions, and how public officials are managing the drilling already occurring in their towns. We’ll speak with Mark Dunau, organic farmer from Delaware County; Jim Bays, Supervisor of the Town of Smyrna, in Chenango County; and Abby Tamber, steering committee member of the Central New York Landowners Coalition.*

    While Mr. Dunau is clearly anti-drilling and Mr. Bays is somewhat anti-drilling, Ms. Tamber does a good job of representing local landowner groups and the concerns of landowners. The questions by the host are pretty good, and as far as public radio goes, this is about as fair and balanced as it gets. Overall, a B+ from MDN. Worth listening to as it does discuss some very important issues for landowners. Embedded player below—give it a listen! The segment is 34 minutes in length.

    *WNYC (Mar 23) – The Lenoard Lopate Show

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    EPA Director of Drinking Water Protection says States are “Doing a Good Job Already” Regulating Hydraulic Fracturing

    Brad Gill, executive director of the Independent Oil & Gas Association of New York, recently responded to an article in The Buffalo News supporting regulation of hydraulic fracturing by the federal Environmental Protection Agency (EPA). Marcellus Drilling News considers the EPA proposal way out of line and a federal power grab that is unwarranted and illegal. Seems that Mr. Gill thinks so too. From his letter to the editor:

    All processes related to natural gas exploration and extraction are regulated by the states which, because of their vast geological differences, can do a more thorough job. The U. S. Environmental Protection Agency would never be able to regulate these processes efficiently or cost-effectively. In fact, Steve Heare, director of EPA’s drinking water protection office, recently said states are “doing a good job already” regulating hydraulic fracturing, adding that there is no evidence that suggests the process contaminates water.*

    Be sure to click through and read the rest of the letter. Great summary of why hydraulic fracturing is safe, and why drilling should move forward now.

    *The Buffalo News (Mar 22) – Brad Gill: Hydraulic fracturing issues are already answered