Industrywide Issues

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    CELDF Tries to Shut Down GreenHunter’s OH Injection Wells

    The radical leftist PA-based group Community Environmental Legal Defense Fund (CELDF) is making mischief in neighboring Ohio. The CELDF is using some of its millions of Big Green dollars to file a lawsuit against Meigs County, OH Commissioners because the commissioners refuse to put an illegal ballot measure up for a vote in November. The CELDF pressured the citizens of Highland Township in Elk County, PA in 2013 to pass a so-called Community Bill of Rights–the same kind of law they want Meigs County to adopt (see today’s companion story about the ecosystem that speaks). Meigs County already has two injection wells recently brought online by GreenHunter Resources, with plans to bring another two online in the near future (see GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH). GreenHunter has built out a barge terminal along the Ohio River in Meigs County where they plan to unload barged brine for disposal (see GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells). The CELDF so-called Community Bill of Rights would stop GreenHunter’s injection wells and the barge terminal from operating. Can you imagine the lawsuits and the amount of money Meigs County residents would have to pay out if that happened? It would likely bankrupt the county. Meigs County commissioners rightly seek to protect the citizens they were elected to represent from this horrific economic apocalypse. And so now, the CELDF is suing Meigs commissioners because they won’t allow the ballot measure to proceed…
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    Is Wayne County, OH Sheriff Breaking the Law re NEXUS Pipeline?

    It appears that an anti-pipeline member of the Wayne County, OH sheriff’s department, Capt. Doug Hunter, has convinced his boss, Sheriff Travis Hutchinson, to ride roughshod over the members of the department–telling deputies they can’t, in their off-duty hours, moonlight as security guards for the NEXUS Pipeline. Hunter’s argument to Hutchinson is that a member of the sheriff’s department going out with surveyors, who have been threatened by anti-pipeline wackos, somehow “intimidates” landowners. Even though the sheriff’s deputies are not in uniform, not driving a police car, and are otherwise unrecognizable to landowners as belonging to the sheriff’s department when they tag along to be sure the surveyors don’t get accosted by the peace-loving landowners the sheriff is “sworn to serve.” Sheriff Hutchinson bought Hunter’s argument hook, line and sinker. And so Sheriff Hutchinson has told his deputies what they can and can’t do in their off-duty hours. Hmmm. We wonder how the deputies like being told what they can and can’t do when they’re off the clock? We wonder if they like the sheriff preventing them from earning extra money working for a private company (a common practice with off-duty law officers)? Could the sheriff himself be breaking the law by disallowing his deputies from working for one specific private company, when (we presume) he allows the very same practice for other private companies?…
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    Stark County, OH Judge Orders Sheriff to Assist NEXUS with Surveys

    In Summit County, OH, a county judge has denied NEXUS Pipeline’s request to force recalcitrant landowners to allow surveyors on their property (see Summit County, OH Judge Denies NEXUS Request to Survey Properties). In neighboring Stark County, it’s the reverse. A judge in Stark County granted NEXUS a court order allowing them to survey properties where the pipeline may potentially run. And whereas in Wayne County (borders both Summit and Stark) the Wayne County Sheriff won’t let his deputies work as off-duty security guards for NEXUS (see today’s story questioning the legality of the Sheriff’s action), the judge in Stark County has ORDERED the sheriff there to enforce NEXUS’ right to enter properties to survey them. The Stark County sheriff is telling his on-duty deputies to accompany surveyors to protect them. Is your head spinning yet?…
    Read More “Stark County, OH Judge Orders Sheriff to Assist NEXUS with Surveys”

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    Differing Versions of How PA Budget/Severance Tax Talks are Going

    baseball bat kneecapsWhere does the Pennsylvania budget negotiation/standoff stand? Depends on who you ask. There have been some intense negotiations over the past few days (a room with a bunch of men hollering at each other). When he emerges from the meetings, PA Gov. Tom Wolf, the most liberal governor in the United States, paints a smile on his face and mouths unspecific platitudes about making progress. When Wolf’s top surrogate emerges, State Sen. Vincent Hughes (Democrat from Philadelphia), Hughes says they aren’t any closer to getting Republicans to cave on a Marcellus Shale-killing severance tax. And that irks him. And Hughes blusters that there will be NO budget without a severance tax as part of it. Good luck with that Sen. Hughes. We applaud Republicans for preserving the Marcellus industry–what’s left of it in this low price environment. Let’s hope Republicans don’t cave to the bluster and deceit being pedaled by the Democrats in Harrisburg. We certainly understand the Dems are in a real bind. They PROMISED the teachers unions big money in return for their support. This is a payoff–shaking down the Marcellus industry to give the money to overpaid teachers and union bosses. And if Wolf doesn’t pull it off–he can kiss a second term good-bye as far as the unions are concerned. They play for keeps and Wolf knows it. Here’s the latest in the ongoing budget battle…
    Read More “Differing Versions of How PA Budget/Severance Tax Talks are Going”

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    New NatGas Powered Electric Plant Coming to…Rhode Island?!

    Yet another new electric generating plant that will use abundant, cheap and clean-burning natural gas to power it was recently announced in…Rhode Island? Yep–Rhode Island, the socialist paradise on the East Coast. Home to old money and people who oppose change of any kind. At a big ceremony last week none other than RI’s Gov. Gina Raimondo joined the CEO of Invenergy to announce the Clear River Energy Center–a 900 megawatt electric generating plant that runs on natural gas. The new plant will lower RI residents’ electric bills by a collective $280 million and replace aging coal and oil power plants–cleaning the air in the process. With the jobs created, the investment in the facility, and lower electric rates, it’s calculated this single plant will have a $1.3 billion impact on the economy of RI. Now if we can only get either the Kinder Morgan’s Northeast Energy Direct or Spectra Energy’s Access Northeast pipelines built…
    Read More “New NatGas Powered Electric Plant Coming to…Rhode Island?!”

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    Moody’s Says Oil & Gas Prices Staying Low Another 3 Years

    How long will oil and gas prices still in the basement? Isn’t that the quadrillion dollar question! A new report from Moody’s Investors Service says, after evaluating data on 90 companies, it expects oil and gas prices to stay low for another three years. Ouch. Here’s some insights from the wizards of smart at Moody’s…
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    Frack Wastewater Treatment Market Still Worth $1.9 Billion

    Even though we’ve had a dramatic decline in global oil prices–a price collapse from near $100 per barrel to less than $45 per barrel in under a year, and even though that price collapse is directly related to less shale drilling and fracking everywhere–including the Marcellus/Utica, water reuse/recycling in the Marcellus Shale is still in demand says a new report by Lux Research. In fact, the market for frack water management across the country is still estimated to be worth $1.9 billion, not including water transportation and disposal…
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    PA DEP Finalizes Onerous New Drilling Regs, Industry Opposes

    fireworksMajor changes are on the way for Pennsylvania’s conventional (vertical) and unconventional (shale/horizontal) drillers. In 2011 PA began a process that’s gone on way too long, to update certain regulations that apply to oil and gas drillers known as Chapter 78 of the 1984 Oil and Gas Act. Along the way the PA legislature decided there should be separate rules governing conventional and unconventional drilling–so Chapter 78 has become Chapter 78 (conventional) and 78a (unconventional). PA was close to adopting the new rules at the end of the Tom Corbett administration but then he lost his bid for re-election, throwing the process into turmoil once again with newly elected Tom Wolf and his PennFuture buddies wanting to put their own stamp on drilling regulations in the Keystone State (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Yesterday the Dept. of Environmental Protection (DEP) released the final draft version for both Chapter 78 and 78a (copy below). Last week the group that will consider this new draft for conventional drilling, the Conventional Oil and Gas Advisory Committee (COGAC), preemptively said they would vote against adopting the draft (see PA DEP Sec Quigley’s Own Committee Appointees Turn Against Him). PennFuture DEP Sec. Quigley said, “COGAC’s opposition will not hinder the progress of the final rule, and I hope when they meet in August that they are prepared to engage with us as we finalize the rule.” In other words: “Screw you, I’ll do what I want to do anyway.” We predict fireworks at the COGAC meeting on August 27 in Harrisburg…
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    MarkWest to Build $1B OH Utica Dry Gas Gathering System for Ascent

    Although it seems there is no end of bad news in drilling company financials right now, here’s a spot of good news: MarkWest Energy, the premier midstream/pipeline company in the Marcellus/Utica (selling itself to Marathon Petroleum), has just announced they are investing $1 billion over the next three years to install a new gathering pipeline system in eastern Ohio–particularly in Belmont and Jefferson counties–mostly for Ascent Resources. Ascent, backed by major investor EMG, was once Aubrey McClendon’s subsidiary company called American Energy Appalachia Holdings that has since broken free of McClendon and American Energy Partners and is now its own 100% standalone company. The MarkWest/Ascent deal is to build a 250-mile pipeline system in the Utica dry gas region that will gather more than 2 billion cubic feet per day (Bcf/d) of natural gas not only from Ascent, but also from other producers in the area. Here’s the details from MarkWest…
    Read More “MarkWest to Build $1B OH Utica Dry Gas Gathering System for Ascent”

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    AG Kathleen Kane’s Defense: Dirty Old Men are Out to Get Me!

    On Monday MDN told you that Kathleen Kane, Pennsylvania’s anti-drilling Attorney General, had been arrested and fingerprinted on a felony charge of perjury, plus various misdemeanor charges (see PA’s Anti-Drilling AG Kathleen Kane Arrested, Fingerprinted). We told you the charges against Kane have nothing to do with the Marcellus industry that she so zealously persecutes, but we’ll be darned if the Marcellus, in a roundabout way, hasn’t crept into this ongoing saga. Yesterday Kane held a press conference where she a) avoided responding to or commenting on the very serious charges against her, and b) instead claimed people are out to get her because of a case her office prosecuted last year in which she found, in going over old emails from before she took office, that some state employees swapped pornographic emails using government computers. That case that led to the resignation of a state Supreme Court judge and also the resignation of then-Secretary of the Dept. of Environmental Protection Chris Abruzzo (see PA DEP Sec. Chris Abruzzo Resigns Following Porn Email Scandal). Abruzzo was liked by the Marcellus industry. Kane’s performance yesterday was, frankly, sad and somewhat bizarre. It appears the pressure is causing her to self-destruct right before our eyes. Her “defense” was not a denial that she leaked privileged information to a reporter in an act of revenge against a subordinate (something a grand jury indicted her for)–but that dirty old men are mad that she snooped through their emails, and now they’re out to get her. Kane’s solution? Release the “filthy” emails to distract everyone from her own crimes…
    Read More “AG Kathleen Kane’s Defense: Dirty Old Men are Out to Get Me!”

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    Hilcorp Enclosing PA Compressor Station to Please the Neighbors

    Hilcorp Energy is doing the right thing in Lawrence County, PA. Back in June, MDN told you the story of residents living near a compressor station owned by Hilcorp in Mahoning Township, Lawrence County (see Tackling a Tough Issue: Compressor Stations Near Populated Areas). Residents living near the compressor station said the noise level is intolerable. It took a few months, but Hilcorp has agreed to build a new structure around the compressor station lined with special noise-deadening blankets that should take care of the problem. Kudos to Hilcorp for doing the right thing for the neighbors on Baird Road…
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    Summit County, OH Judge Denies NEXUS Request to Survey Properties

    Last week NEXUS Pipeline filed court cases against landowners in Summit County to force them to allow NEXUS surveyors access to their property (see NEXUS Pipeline Files Lawsuits for Survey Access in Summit County). The City of Green and other municipalities have stirred up so much resentment against NEXUS that the pipeline company is forced to send armed security guards out with their surveyors, fearing for their safety (see NEXUS Pipeline Sends Armed Guards with Surveyors to Protect Them). Although NEXUS needs access to survey so they can complete their application with the Federal Energy Regulatory Commission, a Summit County judge yesterday denied the request by NEXUS, setting up a court battle in October…
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    Moody’s: NatGas Will Trump Coal & Nuclear in PJM Electric Auction

    Increasingly the natural gas and electricity markets are becoming bosom buddies. Why? Because natural gas is displacing coal and even nuclear power as the preferred fuel to power electric generating plants. This is a profound change happening right now–important for you to understand as it will play a key role in new markets for Marcellus/Utica Shale gas now and into the future. Lesson #1: PJM Interconnection is a regional transmission organization (RTO) coordinating the movement of wholesale electricity in all or parts of 13 states and the District of Columbia (essentially Appalachia). PJM’s electric transmission grid covers all or parts of: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. Electricity moving through those areas is coordinated by PJM–meaning new electric generating plants that get built, or existing plants that get upgraded/converted to burn other fuel sources, must go through a PJM approval process. From time to time PJM conducts capacity auctions to increase the amount of, and reliability of, electric supply for the grid. PJM is currently conducting such an auction, and according to a new research report from Moody’s Investors Service, coal and nuclear electric generating plants will likely lose out to natural gas-fired electric plants thanks to the low price of Marcellus Shale gas…
    Read More “Moody’s: NatGas Will Trump Coal & Nuclear in PJM Electric Auction”

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    NatGas Gensets Market Worth $147B Over Next 10 Years

    Just when you think you’ve heard all of the various markets where natural gas is used, markets that will sop up the huge increase in supply we have, you hear of a new one. At least, it’s new to us. On MDN you’ve read many times about electric generating plants that burn natural gas to generate electricity (see our list of stories here). There is another, similar, market called natural gas gensets, or generator sets. Essentially gensets are smaller electric generating “plants”, from 15 kilowatts to 20 megawatts in size, used by homes, businesses and utility companies. Many times gensets are used as backup and standby generators (think backup generator at your local hospital where power interruption is literally a life or death situation). Navigant Research has just published a report that estimates the market for natural gas gensets will expand to $147 billion (yes, billion) over the next ten years. Looks like big backup generators are going natgas!…
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    Ascent Resources/EMG Sues Aubrey McClendon’s Law Firm for Fraud

    bad bloodEverybody’s suing everybody. That about sums up the mess created (sadly) by none other than Aubrey McClendon. The subsidiary businesses that were once part of McClendon’s new company, American Energy Partners (AEP), continue to run away from Aubrey as fast as they can. On Monday, Ascent Resources, once called American Energy Appalachia Holdings but separated from the AEP mothership in June (see Big McClendon News: Sells 35K Utica Acres, Creates New Company), sued the law firm representing Aubrey in the “stolen data” case brought by Chesapeake Energy. Yes it’s complicated and it’s a mess. We’ll attempt to sort this all out so it’s understandable…
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    William Penn/Delaware Riverkeeper $320K “Study” Slams Fracking

    oldest professionIf you’re a Big Green group, like THE Delaware Riverkeeper, you have millions of dollars to a) launch lawsuits against the natural gas industry, and b) buy yourself research studies that support your twisted viewpoints. It is the latter that happened yesterday. CNA, a not-for-profit organization once called the Center for Naval Analyses, sells itself to the highest bidder (the oldest profession in the world). Most recently they sold themselves to THE Delaware Riverkeeper (we certainly hope they used protection). CNA and THE Delaware Riverkeeper held a press briefing yesterday to release a “study” by CNA titled “The Potential Environmental Impacts of Fracking in the Delaware River Basin” (full copy below). What did the “researchers” at CNA, which is based in Arlington, VA just outside the DC orbit, find? If the moratorium is lifted and shale drilling is allowed in the Delaware River Basin–essentially Wayne and Pike counties in Pennsylvania–CNA says it will lead to “land cover disturbance” in “core forest areas”, extreme water withdrawals from poor little creeks and streams, nasty wastewater polluting everything, erosion everywhere, multiple compressor stations and untold ill health impacts for 75,000 people who live close to all of this mess. See what $320,444 (the actual cost of this study) can buy you? We hope it felt good for Riverkeeper…
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