Industrywide Issues

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    WV Sec Commerce Says State Unfriendly to Gas-Fired Power Plants

    WV Commerce Sec. Woody Thrasher

    West Virginia Secretary of Commerce Woody Thrasher had some harsh words when he gave a speech to House and Senate legislators about his own state. Thrasher said one of the reasons why WV is trailing both OH and PA economically is because WV treats natural gas-fired electric plant projects so poorly. Thrasher had data to back up his claim. In Ohio, 19 natgas-fired plants have been built. In PA? Some 22 natgas-fired plants! Although there’s been plenty of talk–for years–that such plants are coming in WV–the number of gas-fired plants that has actually broken ground to date in WV is…ZERO. Nada. None. Thrasher says power plant owners have concluded it’s just easier, due to regulations and fewer hoops to jump through, to avoid WV and build their projects in OH or PA. Thrasher’s comments were some verbal cold water splashed on the faces of WV’s legislators, in an attempt to get them to address the situation, or risk forever being behind the eight ball…
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    2 Dimock Families Suing Cabot O&G Settle Out of Court

    Some big news that both Cabot Oil & Gas and the two families suing them seem to want to keep quiet: they’ve settled out of court. Brief background for those new to MDN and to the “Dimock” story: There were 14 families along the Carter Road area of Dimock Township, PA (Susquehanna County) that reportedly experienced turbidity in their water from methane migrating, supposedly from Cabot’s drilling operations nearby. The state Dept. of Environmental Protection (DEP) investigated in 2010 and declared Cabot guilty and imposed stiff fines and requirements, including a requirement to install permanent water treatment systems at each home and even an offer to each of the families to pay twice what their property was worth at the time (see PA DEP Takes Aggressive Action Against Cabot Oil & Gas over Dimock Township Methane Contamination). We won’t recount all of the twists and turns we documented over the years, including research that showed Cabot wasn’t responsible for the methane migration. All of the 14 properties either sold to Cabot or got their water systems repaired–except for two holdout families who were riding the horse of hope that they could sue Cabot for big money and retire millionaires. For a time, it appeared their plan worked. Last year, in March 2016, a trial took place in Scranton. It was a sham trial, with the lawyer for the two families engaging in borderline unethical practices in the courtroom in her attempt to influence the jury. One of the two families admitted, under oath on the witness stand, that their water had too much methane in it BEFORE Cabot Oil & Gas began to drill nearby. The same family, the Elys, later built a 22-room, $1 million mansion on the same property AFTER they admit there was trouble with the water. And yet the jury found Cabot at fault and awarded the Elys $2.75 million. The other family suing Cabot got $1.49 million (see Dimock Jury Levies $4.24M Judgement Against Cabot in Dimock Case). The verdict was obviously brain dead and a federal court judge threw the verdict and judgement out, saying a brand new trial would have to take place (see Fed Court Overturns $4.2M Dimock Judgement Against Cabot O&G). There will now be no new trial. Last week both sides settled the case “amicably”–whatever that means. We’ll tell you what it means. It means Cabot paid big bucks to make it all go away–although they won’t admit it…
    Read More “2 Dimock Families Suing Cabot O&G Settle Out of Court”

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    Anti-Pipeline Quartet Sues Sunoco, ET, Police, Others re ME2 Arrests

    Two serial, paid protesters, along with a landowner and her daughter have sued Sunoco Logistics and parent company Energy Transfer for breaching their constitutional rights. You may recall our story about the daughter of a Huntingdon County, PA landowner, radicalized by Big Green groups (as evidenced by her association with well known protesters previously arrested), who took to a tree on her mom’s property in March 2016 in order to illegally stop crews working on tree clearing for the Mariner East 2 pipeline (see PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline). It ultimately didn’t matter, because Sunoco came back and cut down the few trees they needed to cut anyway (see Sunoco Tricks Radicalized Protester – Returns and Cuts More Trees). Eventually law enforcement got around to arresting the daughter, and the mom (who also trespassed during tree clearing). Law enforcement also arrested two serial criminal trespassers/antis who participated. Unfortunately, in a miscarriage of justice, the charges against all them were later dropped (see Charges Dismissed Against Tree Sitting Anti in Huntingdon County). The quartet is now suing everyone and his brother: “The suit accuses Sunoco, plus a private security firm, a publicist, and 27 state and local police officers of violating constitutional protections over free speech, false arrest, malicious prosecution and equal protection.” More Big Green money at work with yet another frivolous lawsuit…
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    Anti on HuffPo Agrees w/MDN: Wolf Dangled $1M Carrot for Severance Tax

    Last week MDN told you about a visit by Pennsylvania Gov. Tom Wolf to Wyoming and Susquehanna counties in northeastern PA (see PA Gov. Wolf Visits NEPA to Barter for Marcellus Severance Tax). As we said at the time, the point Wolf was making on his visit to Tunkhannock is that $1 million promised to the village as part of the PIPE (Pipeline Investment Program) is being held up because the state budget is late. The budget is late because (according to Wolf) those dunderheads in the House won’t approve a severance tax. And if the hicks in Tunkhannock and elsewhere in rural NEPA would just pressure their House members to pass the severance tax, voila, that $1M check is in the mail. Sleazy. So imagine our surprise to read a column by a hardened anti-fossil fuelers in the Huffington Post–that essentially says the same thing. She even used our analogy–that Wolf is holding out a $1M carrot to elicit support for the severance tax. While you have to put up with the anti-drilling snark, the article/column is actually pretty good, giving a history of the PIPE program and its successes (which the author considers failures)…
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    Severance Tax Still Stalled – 3 Reasons It’s a Bad Idea

    The good news is that any number of severance tax proposals in Pennsylvania are still “stalled” and going nowhere fast. The bad news is that there still is not a finalized budget. Republicans have no one to blame but themselves. They passed an unbalanced, whopping $32 billion state budget plan months ago–without a way to pay for it all. Which has set up extreme pressure to adopt new taxes, including a severance tax and gross receipts tax. It appears that the GRT is dead, but the severance tax is not yet totally dead. Why? Because House Speaker Mike Turzai continues to hold the line–preventing a floor vote on the severance tax. Pin a medal on that man! Elect him as your next governor! He knows how to lead. However, since the severance tax is not totally dead (yet), we feel it’s necessary to keep talking about it. We’ve heard from some MDN readers who ask, “Why not adopt a small severance tax? It’s not all that bad, is it?” Yes! It is bad! And the Commonwealth Foundation (of PA) tells us why…
    Read More “Severance Tax Still Stalled – 3 Reasons It’s a Bad Idea”

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    2 Nova Scotia LNG Export Projects Moving Forward

    Over the past few years MDN has tracked the progress of 4 LNG export plants planned for the eastern shore of Nova Scotia. Two of those projects appear to have life–the Bear Head LNG project (see our Bear Head LNG stories here), and Goldboro LNG (see our Goldboro stories here). Why bother tracking LNG export facilities all the way up in Nova Scotia? Because they’re a huge potential market for Marcellus and Utica Shale gas. There are challenges to getting our gas there, to be sure. The Maritimes & Northeast pipeline will need to be converted to be bidirectional, and other pipelines connected to the Maritimes pipeline to flow the gas north. Those plans are in the works. However, the Marcellus/Utica, albeit the closest to Nova Scotia, is not the only game in town attracting the attention of these two projects. Word on the street is one of the two Nova Scotia projects is looking closely at piping gas all the way from Alberta to Nova Scotia–that is, from western Canada…
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    New Site FractCheck.com Fact Checks Wild Fracking Claims

    For years Hollywood celebrities and those who want to be celebrities have lied and spread fake news about fracking. Some of the more colorful attempts have come from the likes of the singularly untalented Julian Lenon and stepmom Yoko Ono “singing” (if that’s what you call it) the song “Don’t Frack My Mother” (see “Frack” No Longer a Naughty Word, Loses its Sex Appeal). Susan Sarandon joined Yoko Ono and Julian Lennon on a fossil fuel-belching bus trip of northeastern PA to visit fracking sites and spread more lies (see Looney Toons Anti-Fracking Celebrities Visit Montrose, PA). When these gits make their wild claims, mainstream media doesn’t bother to fact check it–because mainstream media doesn’t care what the truth is. There’s only the narrative they support–which is fossil fuels are evil, carbon (and methane) are toasting Mom Earth, yada yada yada. So when we get claims like “fracking pollutes water” or “fracking causes asthma” there is no one, aside from sources like MDN, to set the record straight. Now there is. Texans for Natural Gas, a pro-energy grassroots group with more than 270,000 members, has launched a new website called FractCheck.com. FractCheck.com will fact check major claims about fracking. Egregiously false claims will be branded as such and accurate claims will be acknowledged as “Fracts.” Cool, eh? It’s about time we started fact checking these empty-headed Hollywood types, to expose them for the vapid people they really are…
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    Allegheny Comm. College Offers Free Scholarships for Cracker Jobs

    Last week MDN told you that Community College of Beaver County (CCBC) is operating a program in process technology that leads to an associate’s degree as preparation for a job at Shell’s $6 billion ethane cracker plant, being built now in Beaver County (see Community College of Beaver County Preps Students for Cracker Jobs). Shell primed the education pump by offering 14 full-ride scholarships for the program. Not to be outdone by CCBC, Community College of Allegheny County is offering free tuition to Washington County residents, thanks to a $100,000 scholarship program that’s looking to build a cracker-ready workforce. Yikes! Yes, it does seem a bit odd to us that Community College of *Allegheny County* is offering free tuition to *Washington County* residents–but hey, it works for us. Students can get either a one-year mechatronics certificate, or a commercial driver’s license (CDL). The “Cracker Ready Grant” program is funded by the Remmel Foundation through PNC Charitable Trusts. Here’s the deets…
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    Cove Point to Begin LNG Exports in October or November!

    Glory hallelujah! Dominion’s Cove Point LNG export facility along the shoreline of Maryland is on the cusp of starting LNG exports. According to one speaker at a Houston conference, Cove Point will begin shipping in November. Another speaker (from analytics firm Genscape) said they believe the facility will actually begin some shipments in October! In early 2012, MDN began covering the story of Dominion planning to build an LNG facility at a location where they currently operate an import facility, in Calvert County, MD (see Japan Negotiates to Buy Marcellus Gas). We covered the news over the years, from approvals from the Federal Energy Regulatory Commission and Maryland, to lawsuits from the nutty Sierra Club, to everything in between. Here we are 5 1/2 years later and it’s almost upon us–the day when Cove Point begins to ship LNG to Japan and India. Wow! Here’s the exciting news that the facility is gearing up now…
    Read More “Cove Point to Begin LNG Exports in October or November!”

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    NETL Morgantown Working on Breakthrough Shale Production Techniques

    As enormously productive as the Marcellus/Utica wells are, did you know that the best wells only recover perhaps 20% of the available gas trapped in shale rocks? Often it’s more like 10%, or 5% recovery. The National Energy Technology Laboratory (NETL) in Morgantown, WV is trying to change those numbers. In a research program NETL calls “mastering the subsurface,” researchers are learning what happens at the smallest level of fracturing shale–so they can improve recovery rates using new processes and materials. In addition to improving recovery, they’re also looking for ways to cut down on water use. Since there’s a fair bit of water already trapped in shale, NETL is experimenting with carbon dioxide foam, as a way of using less water. (Don’t tell Al Gore. He HATES carbon dioxide, calling it a “pollutant” and saying it causes Mom Earth to toast). NETL is also using natural gas itself to frack rock. A lot of very important research is happening at NETL–research that may one day change the way we frack…
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    New Rice U Filter Cleans Frack Wastewater on Location for Reuse

    Flowback (water that comes back out of the well after fracking) and produced water (naturally occurring water from the depths that comes out the well for months and years after it’s drilled) have long been a “problem” drillers have to deal with. The choices are to: (1) haul it away to an injection well, (2) haul it to a centralized recycling facility, or (3) recycle it on location and reuse it for more drilling/fracking. That third option is really the brass ring for drillers. If only there were an economical way to recycle the water on location and reuse it. Researchers at Rice University (in Texas) believe they have made a breakthrough in option #3. Using a ceramic membrane with microscale pores, Rice researchers have found a way to clean flowback and produced water, removing 90% of hydrocarbons, bacteria and particulates in a single pass through the filter. The Rice discovery is aimed particularly at flowback–the 10-15% of fluid pumped down the hole to frack a well. Rice researchers published their research online, today, in Nature magazine’s open-access Scientific Reports. We have a copy of the paper, titled “Superhydrophilic Functionalization of Microfiltration Ceramic Membranes Enables Separation of Hydrocarbons from Frac and Produced Water,” below…
    Read More “New Rice U Filter Cleans Frack Wastewater on Location for Reuse”

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    Shale Boom Foundation on Which WV Manufacturing Will be Built

    Brooks McCabe

    Brooks McCabe is a former West Virginia state senator and the a current WV Public Service Commissioner. In a recent editorial, McCabe made some pretty bold, even startling, claims. He said that the Marcellus/Utica shale in the state is the “foundation for West Virginia’s new manufacturing economy.” That is, shale drilling is just the tip of the iceberg for WV, economically speaking. McCabe went on to say this: “This [shale] economy has the potential to lift the state out from under a cloud of mediocrity and self-doubt to perhaps the brightest future the state has ever known.” Holy cow! That’s some high praise for the power of shale gas and oil! The key is, of course, in the downstream–the petrochemical sector. In a word, plastics. You do know that plastics come from hydrocarbons (oil and gas), right? That modern-day existence would not be possible apart from oil and gas. That we would still be living in the Stone Ages were it not for fossil fuels. What will it take for WV to take full advantage of this opportunity? McCabe has some thoughts on that…
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    What is “Loss of Circulation” When Drilling Underground for Pipelines?

    “Loss of circulation” sounds like a terminal condition–and perhaps it is, in a human body. But that phrase applied to drilling underground to install pipelines holds a different meaning. Loss of circulation is the technical term used when drilling fluid migrates out of the hole being drilled, and into (eeks) groundwater. Thing is, drilling fluid used to drill for pipelines is non-toxic–the primary component being bentonite clay. Bentonite is the same thing used to make kitty litter, cosmetics and toothpaste. So a little bentonite clay escaping into a water supply is not a big deal–unless it’s a LOT of bentonite escaping. Then it can foul a water supply, at least until the clay settles and the water clears again. A former geologist working for the Texas Railroad Commission (the government body in charge of regulating oil and gas in Texas) has written a thoughtful column in the Harrisburg Patriot-News to talk about loss of circulation that has happened in several locations while drilling for the Mariner East 2 pipeline in PA. The former geologist knows a thing or two about drilling, about benonite, and about spilling a little mud here and there. He provides some much needed perspective on the issue–a counterbalance to the wild speculations and false claims made by anti-fossil fuelers…
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    PennEast Pipeline’s Sole Compressor Station Approved by PA Town

    PennEast Pipeline has just achieved yet another milestone on its way to getting built. At a meeting last Thursday, the Board of Supervisors for Kidder Township (Carbon County, PA) voted 5-0 in favor of issuing a permit to PennEast to site the one-and-only compressor station the 120-mile pipeline will need. Proving yet again that most Pennsylvanians are in favor of this project, contrary to the mainstream/leftist media drumbeat against it. PennEast is a $1 billion primarily 36-inch pipeline from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The company expects final Federal Energy Regulatory Commission (FERC) approval any week now. There are still a few hurdles left–mostly in New Jersey. But those hurdles are certainly surmountable. The radical Sierra Club and THE Delaware Riverkeeper are adamantly opposed and continue to try and throw up legal (and regulatory) roadblocks. No matter. This important pipeline will get built–and this compressor station approval is one more bit of evidence that it will get built…
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    Twin Eagle Sand Enters Marcellus/Utica with WV Transload Facility

    Twin Eagle Resource Management, headquartered in Houston, TX, bills itself as a provider of wholesale energy and midstream services throughout North America. Twin Eagle also serves the upstream (drilling market) via a number of transloading facilities to ship and store frac sand. Currently Twin has five facilities, serving: Central Eagle Ford (Elmendorf, TX), South Eagle Ford (Laredo, TX), Powder River Basin (Douglas, WY), Permian Basin (Big Spring, TX), and DJ Basin (Evans, CO). You can now add a sixth facility–a frac sand transloading facility in Bridgeport, WV, to service the Marcellus/Utica region. Last week Twin Eagle Sand Logistics (Twin Eagle subsidiary) announced a deal to buy an existing frac sand terminal in Bridgeport from Process Transloading Bridgeport. Terms of the deal were not disclosed. “Transloading” is a simple concept. It means you ship the sand in via railroad, or barge, unload it, store it, and then load it onto trucks which haul it to well pads where it gets used to frack shale wells. Let’s give a hearty welcome to the latest entrant into the Marcellus/Utica supply chain! Here are the particulars of the Bridgeport facility…
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    Marcellus Industry Keeps a Close Eye On 3 Pending Bills in PA

    The Marcellus industry is closely watching three pieces of legislation sitting in the Pennsylvania legislature, bills that the industry fervently hopes do not pass. One of the bills is House Bill (HB) 557, introduced by Rep. Garth Everett, which would amend/fix the Oil and Gas Lease Act to ensure landowners get a minimum royalty of 12.5%, regardless of post-production deductions (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Another bill is HB 1624, which would slap a 6.5% severance tax on the drilling industry, with an allowance for drillers to deduct the current impact fee they already pay (the equivalent of a severance tax). So in essence, HB 1624 doubles or triples the existing severance tax (i.e. impact fee) to obscene new highs. The third bill is HB 542, the state budget bill for 2017 passed by the Senate (not the House), which would initiate a new 2% severance tax on top of the existing impact fee (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Two of the three bills are unlikely to get passed during this session. The third is a toss-up. Which is which?…
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