Industrywide Issues

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    Anti-Drilling Radicals Push Frack Ban in Virginia

    Groundhog DayVirginia doesn’t have the Marcellus/Utica under it–at least not very much. But Virginia does have another shale layer–the Taylorsville. We commented back in 2014 that the state is inching closer to allowing fracking in the Taylorsville and other potential basins (see Virginia Inches Closer to Shale Drilling in Taylorsville Basin). They’re still inching–and it’s not going very fast. Anti-drilling radicals have risen up to oppose anything to do with shale in the state. One such radical is King George County Board of Supervisors Chairwoman Ruby Brabo. Ruby is agitating against drilling. She’s traveling all over Hades’ half acre to try and figure out how she can import frack bans in King George County. She’s being supported in her efforts by the odious nutters of the Sierra Club. A local anti-drilling reporter in Ruby’s area, Cathy Dyson, serves as Ruby’s media shill, lionizing her idol in a recent article…
    Read More “Anti-Drilling Radicals Push Frack Ban in Virginia”

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    Bloomberg Predicts Court Will Strip NY’s Right to Stop Constitution

    Constitution PipelineWe have been making the point, loudly, for the past year, that IF New York State blocks the Constitution Pipeline, as they have now done, the state runs the very real risk of having the federal government strip away their right to make such decisions about any federally-approved pipeline project. We’ve previously warned that New York is in grave danger of losing their power by attempting to block the Constitution. We wrote the following in October 2015: When MDN editor Jim Willis attended the Shale Insight conference in Philadelphia in September, he listened to a panel discussion of midstream (pipeline) experts, including a former FERC commissioner. He got to ask a question and the question, roughly, was this: “The NY DEC is currently holding up the FERC-approved Constitution Pipeline. What if the DEC refuses to issue the necessary permits? What happens next?” The answer Jim got was, “It depends.” The bottom line seems to be that it’s likely FERC (and Williams) will need to take the DEC to court. The DEC frankly has no legal right to prevent a federally approved project from being built. That’s the bottom line. It may take a court to force the DEC (and Gov. Cuomo) to act, but in this matter the law is on our side. This is not a question of “if,” it is a question of “when” the pipeline will get built (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). And now we get to brag about how prescient we were. Williams did indeed have to take New York to court, and now a Bloomberg analyst has written an article expressing essentially the same sentiment we expressed last year (see it below), saying Williams–the builder of the Constitution Pipeline–is “favored to prevail” in one (if not both) legal challenges they have filed. A victory by Williams will result in neutering New York’s authority to block this and other similar projects…
    Read More “Bloomberg Predicts Court Will Strip NY’s Right to Stop Constitution”

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    Court Rejects Dela. Riverkeeper Case Against PA DEP Pipe Approval

    happy dance - SnoopyTime to do a happy dance. THE (arrogant) Delaware Riverkeeper has lost yet another court case–one of many such cases they continuously file to stop any fossil fuel-related project in the northeast. In March MDN told you that THE Delaware Riverkeeper had sued the Federal Energy Regulatory Commission, challenging their decision to approve the Williams Transco Pipeline’s Leidy Southeast Expansion from PA to New York City (see Dela. Riverkeeper Sues FERC Again – Over Leidy Pipeline Expansion). Riverkeeper wanted to hedge its bets–so at some point (not sure when) they also sued the Pennsylvania Dept. of Environmental Protection (DEP) and Riverkeeper’s philosophical clones at the New Jersey Conservation Foundation sued the New Jersey Department of Environmental Protection (NJDEP) claiming the agencies acted “arbitrarily or capriciously” in granting state permits for the Leidy Southeast Expansion project. The U.S. Court of Appeals for the Third Circuit this week slapped down Riverkeeper and their clones in NJ, saying the states were well within their rights to grant those permits, and they did nothing wrong…
    Read More “Court Rejects Dela. Riverkeeper Case Against PA DEP Pipe Approval”

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    Judge Rules No Class Action Against Chesapeake in PA Royalty Case

    go it aloneA landowner couple in Bradford County, PA, Edward and Kathleen Ostroski, filed a royalty lawsuit against Chesapeake Energy claiming Chesapeake was screwing them out of money by conducting “creative” accounting and deducting expenses that shouldn’t be deducted. Seems like there’s hardly a state where Chessy drills where someone has not filed a similar lawsuit against the company. However, in the Ostroski case, the couple claimed (or rather, their lawyers claimed) the case should be a class action. That there are in fact some 2,000 other landowners similarly affected by Chesapeake’s actions. A U.S. Middle District judge ruled on Monday that the Ostroskis may pursue their case–but only for themselves. There will be no class action. If other landowners feel cheated, they will have to bring their own lawsuits against the company…
    Read More “Judge Rules No Class Action Against Chesapeake in PA Royalty Case”

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    WellDog Launches Shale SweetSpotter After Successful Marcellus Test

    welldogWellDog (what a great name!) announced on Monday the launch of a new service called Shale SweetSpotter (another great name!). Clever marketing folks at WellDog, we’ll grant them that. Shale SweetSpotter is “the first commercial reservoir-evaluation analysis technology specific to unconventional natural gas.” In English please! “We’ve just developed a way to tell drillers where oil and gas is locked away in shale layers in the acreage they’ve leased.” Apparently it’s pretty darned good. WellDog partnered up with Shell to test their service in the Marcellus and the field trials were declared “successful”…
    Read More “WellDog Launches Shale SweetSpotter After Successful Marcellus Test”

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    Put-Up Job: Yale “Researchers” Meet with Locals in Belmont County

    YaleIn June MDN told you about another sham “study” on the way from an anti-drilling “researcher” from Yale University, funded by Big Green groups (see Yale Arrives in Belmont County to Study the Evils of Fracking). Nicole Deziel arrived in Belmont and announced, in so many words, she would drag a $20 bill through a trailer park (literally willing to pay only $20) to “study” air and water samples from residents’ domiciles as part of a new research “project” with a predetermined outcome–that they’re being poisoned by fracking. Ms. Deziel wanted 100 participants and ended up with 66. After eight weeks of collecting samples and talking to people, Ms. Deziel held a wrap-up rally with area residents before departing town to discuss the “study”–saying she has no conclusions, yet. The reason we know this latest Yale study is a put-up job, and not real science, is because at the very same wrap-up meeting residents also heard from the radical anti-drilling group Ohio Environmental Council. That’s the tip-off that this was not real research but hucksterism with a predetermined outcome…
    Read More “Put-Up Job: Yale “Researchers” Meet with Locals in Belmont County”

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    OH Gov Kasich Issues Edict to Drillers on Emergency Notifications

    edictOhio Gov. John “foreigner hunter” Kasich is finally getting back to work after it has sunk in he’s not going to be the Republican Party’s nominee for president. One of the first things up on the agenda for Kasich: Issue executive orders. On August 9th Kasich issued Executive Order (i.e. Edict) 2016-04K which forces companies in the oil and gas industry to immediately report o&g emergencies to the Ohio Dept. of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management. The ODNR will then figure out who else needs to get notified and who should respond. Kasich’s Edict will expire in four months and is a band aid solution until the ODNR can adopt a formal, final rule…
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    Letter Proves NY AG, Others “Unlawfully” Ganged Up on ExxonMobil

    Eric-Schneiderman.jpg
    NY AG Eric Schneiderman – corrupt

    Once again there is HUGE news that points to “unlawful” (i.e. illegal) actions on the part of New York State Attorney General Eric Schneiderman–and mainstream media is ignoring it. Previously the Energy & Environment Legal Institute (E&E Legal) released copies of communications between Schneiderman, Massachusetts AG Maura Healey and other lefty Dems to engage in an unethical secrecy pact in their campaign to shake down Exxon Mobil by claiming the company “knew” man-made global warming exists and that burning the nasty fossil fuels the company produces contributes to it (see Smoking Gun: AGs Signed Pact to Keep Exxon Documents Secret). Now E&E Legal has released communications that show Schneiderman et al “unlawfully” colluded by forming an “informal coalition…to stem climate change and expand the availability and usage of renewable energy”. That is, they sought to attack a private company, Exxon, for not admitting mankind is causing a catastrophic toasting of Mom Earth. The AGs decided Obama’s Paris agreement needed some help–and they would do so by agreeing, and keeping secret their agreement, to target private companies like Exxon who won’t roll over and play dead on the issue of global warming. AG Schneiderman and the other lefty AGs have been caught corrupting our system of justice by forming a gang to bully companies and individuals into silence. Will we now see any justice against Schneiderman and the other law breakers? We’re not holding our breath…
    Read More “Letter Proves NY AG, Others “Unlawfully” Ganged Up on ExxonMobil”

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    Rumor: US Methanol Building 5 Methanol Plants in WV

    rumor mongeringMethanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze and more. More commonly you may call it a gas-to-liquids (GTL) plant. Methanol plants have the capacity to create a big demand for natural gas and sop up some of the oversupply we have in the Marcellus/Utica. In May we told you about Primus Green Energy’s plan to build a 160 metric tons per day (MT/day) methanol plant for Tauber Oil somewhere in the Marcellus (see Customer Announced for Primus Green Energy’s GTL Methanol Plant). We have more exciting news. US Methanol, according to their website, is working on two Marcellus methanol plants, coming to West Virginia. One plant, called Liberty One, will produce 175,000 metrics tons per annum, or about 480 MT/day. Liberty Two will produce 150,000 MT/annum, or a about 410 MT/day. Here’s the really really exciting news. We’ve stumbled across a rumor that U.S. Methanol is actually planning to build five methanol plants total. According to the rumor, we know where the first two plants already announced (Liberty One and Two) will be built–AND we know which driller they’ve contracted with to supply the natgas for those plants…
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    Big Stakes: Gorsline Zoning Case Goes to PA Supreme Court

    theyre backGuess who’s back with a case now before the Pennsylvania Supreme Court? Yep, the odious nutters from Big Green Groups PennFuture, THE (arrogant) Delaware Riverkeeper, and the Peters Township gang. You may recall we reported last September of the humiliating defeat suffered by these groups in the “Gorsline” case (see Major Victory for PA Landowners/Drillers in Lycoming County Case). It was a Lycoming County zoning case before the Pennsylvania Commonwealth Court. In Gorsline v. Board of Supervisors of Fairfield Township, anti-drilling neighbors, including Brian and Dawn Gorsline, Paul and Michele Batkowski and others (collectively “Gorsline”) sued to stop a conditional use permit granted by Fairfield Township to allow Inflection Energy to construct a well pad on the property of Donald and Eleanor Shaheen. The case was weak, but the lowest court in the PA court system–the Court of Common Pleas (i.e. county court)–said the ninny nanny neighbors had a right to strip away the Shaheen’s property rights to allow drilling on their own property. The PA Commonwealth Court obliterated the faulty reasoning of the lower court and, significantly, redefined how courts should interpret the results of the Act 13 zoning lawsuit that allows local municipalities the right to restrict shale drilling. Unfortunately the matter won’t rest there. The Pennsylvania Supreme Court has taken up the Gorsline case on appeal. The PA Supreme Court has a 5-2 majority of left-leaning Democrats. Below we have a copy of the brief filed by PennFuture on behalf of the ninny nanny Gorslines, along with “friend of the court” briefs filed by THE Delaware Riverkeeper and Peters Township. Folks, this is a dangerous case the for drilling industry… Read More “Big Stakes: Gorsline Zoning Case Goes to PA Supreme Court”

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    Cayuga Power Plant Stays Open (Burning Coal) – Thx to Fractivists

    Cayuga power plant
    Credit: Ithaca Journal

    In July 2013 we wrote this: “It would be hysterically funny if it weren’t so pathetically sad. So-called environmentalists don’t want an electrical generating power plant in Tompkins County, near Ithaca, NY, to switch from burning coal to natural gas because they’re afraid it will mean more fracking. Talk about cuckoo birds” (see NY Eco Group Protest to Stop Plant Converting from Coal to NatGas). In August 2013 we pointed out that if the plant can’t convert and ends up closing, the local school district is the biggest loser (see If NY Electric Plant Can’t Convert to NatGas, School Gets Screwed). The owner of the plant, Cayuga Operating Co., ended up selling it. The new owner, Riesling Power, tried to continue to process to get approval for converting the coal-fired plant to burn natural gas (not only cleaner, but also cheaper). Ultimately, the Cuomo-controlled Public Service Commission (PSC) turned down the request to convert. So guess what? The new owner certainly isn’t closing the plant after investing all that money. They’re going to keep operating it as a coal-fired plant–belching out far more pollution than a natgas plant would. Congratulations idiot fractivists (including obtuse Assemblywoman Barbara Lifton, who wanted the plant closed). You’ve just screwed yourselves and all of your neighbors too!…
    Read More “Cayuga Power Plant Stays Open (Burning Coal) – Thx to Fractivists”

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    New (To Us) Gathering Pipeline in the Centre of the Marcellus

    Unit-CorporationIt’s not often we miss something that happens in the Marcellus. No, we’re certainly not omniscient. But not much (we hope) escapes our eye when it comes to drillers, midstreamers and other participants in the Marcellus/Utica region. Here’s one that did! Unit Corporation is a Tulsa-based, publicly held energy company engaged through its subsidiaries in oil and gas exploration, production, contract drilling, and gas gathering and processing. Pretty much the whole upstream and midstream pie. In January 2016 Unit completed 49 miles of gathering pipelines in Centre County, PA. That’s the part we missed. Below are a few excerpts from their recent second quarter 2016 update talking about what they call their Snow Shoe Gathering system, along with a couple of screen shots from the most recent company PowerPoint presentation…
    Read More “New (To Us) Gathering Pipeline in the Centre of the Marcellus”

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    US Silica 2Q16: So-So Quarter, Buys Frack Logistics Company

    US SilicaLast week U.S. Silica, one of the largest frac sand providers in the U.S., issued their second quarter 2016 update last week. Frac sand providers are a good barometer for when/if drilling is coming back. You don’t order sand unless you’re drilling wells. The company lost $12 million in 2Q16 versus losing $10 million in 2Q15. However, $1.1 million of that was due to “restructuring costs.” What about revenue? Revenue was $117 million in 2Q16 versus $147.5 million in 2Q15. So we can sum up 2Q16 as “so-so.” Not terrible, not good. With luck, 3Q16 will look better (with drilling beginning to pick up). However, in a sign that U.S. Silica believes the market will come back, they also announced last week they are buying out Sandbox Enterprises, “a leading provider of innovative logistics solutions and technology for the transportation of proppant used in hydraulic fracturing in the oil and gas industry.” That’s a sure sign they think oil and gas is coming back…
    Read More “US Silica 2Q16: So-So Quarter, Buys Frack Logistics Company”

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    Cove Point LNG Now 67% Complete, Atlantic Coast Pipeline on Track

    Dominion Cove Point Terminal
    Dominion Cove Point Terminal – click for larger version

    Last week utility and midstream giant Dominion issued their second quarter update and held an earnings/analyst call to discuss the update. Sometimes those earnings calls are a treasure trove of information you don’t see in the prepared quarterly update, especially in the unscripted Q&A that follows prepared remarks. Such was the case last week. Dominion’s CEO and President, Tom Farrell, along with other top brass from the company, offered up key insights into the Cove Point LNG export project, the Atlantic Coast Pipeline project, Blue Racer Midstream (a Dominion’s joint venture project), and the status of leased acreage for which the company owns Marcellus/Utica drilling rights. A smorgasbord of yummy updates! Here they are…
    Read More “Cove Point LNG Now 67% Complete, Atlantic Coast Pipeline on Track”

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    WVU Effusive Over “Green” Drilling Fluid Used in Test Wells

    effusiveIn July MDN told you about exciting new publicly-financed research at West Virginia University that finds waste from Marcellus/Utica drilling (“frack waste”) is not radioactive or hazardous (see Independent Research @ WVU Concludes Frack Waste is Safe). Anti fossil fuel nutters would have you believe frack waste is an environmental holocaust–but such is proven to not the case. It’s been our observation that when Big Green groups don’t finance (i.e. purchase) research, you get honest, real science results. Like the results coming out of WVU’s 5-year study (financed by the U.S. Dept. of Energy). WVU, along with partner Ohio State University, is in the midst of drilling two Marcellus wells near Morgantown, WV. They are testing and measuring all sorts of things–air, noise, light and water and frack waste (see Drilling for WVU/OSU’s $11M Study Gets Underway in Morgantown). One of the key areas researchers are testing is the use of “green” drilling fluid–fluids that are environment and human friendly, even if they get accidentally released. According to WVU researchers, their experimentation will lead to Marcellus industry adopting greener drilling fluids…
    Read More “WVU Effusive Over “Green” Drilling Fluid Used in Test Wells”

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    More on Trump’s Wrong Position on Local/State Frack Bans

    Donald TrumpLast week we pointed out the inconsistency of Donald Trump in his public comments during an interview in Denver on frack bans. Trump said he believes local municipalities and even states should be able to ban fracking if they don’t want it–even though he personally supports fracking (see Trump’s Disappointing Position on State & Local Frack Bans). Disclaimer: We feel we need to assert our support for Donald Trump. He is a vastly superior choice to Hillary Clinton. We are not a “bash Trump” website. However, when “our” candidate makes a misstep, we don’t look away and we don’t pretend it isn’t there. We have to deal with it honestly–and Trump is 100% wrong in his view on local bans. We explained why in our post last week. However, Paul Driessen, a senior policy adviser for the Committee For A Constructive Tomorrow (CFACT), which is sponsoring the All Pain No Gain petition against global-warming hype, writes about Trump’s inconsistent view on frack bans far more eloquently that we do. Driessen says Trump’s comments reflect “common misperceptions” about fracking and its supposed harms. Here’s what Driessen said in a recent column…
    Read More “More on Trump’s Wrong Position on Local/State Frack Bans”