Regulation

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    Federal Judge Blocks BLM Rules for Fracking on Federal Lands

    judge says noFinally a spot of good news in the never-ending battle to keep the federal government out of the business of regulating oil and gas drilling. Going all the way back to 2012, the federal Bureau of Land Management (BLM), an agency that sits under the umbrella of the U.S. Dept. of Interior (DOI), proposed draft rules for fracking on federally-controlled land (see BLM Issues Proposed New Rule for Fracking Federal Lands). There are some federal lands in the Marcellus/Utica–but not much. However, it’s the larger principle at stake: Will we allow the federal government under the Obama Administration to continue violating the U.S. Constitution, which specifically leaves oil and gas regulation to the individual states? Since 2012 several drafts of BLM’s fracking regulations have been released, the final version in March of this year (see BLM Introduces “Final” Fracking Rules for Fed Lands – 3 Yrs Late). The BLM adopted the new rules in March with the intent of enforcing them, but they were quickly sued in federal court by the Independent Petroleum Association of America, the Western Energy Alliance, the Ute Indian tribe and the states of Wyoming, North Dakota, Colorado and Utah. A federal judge ruled yesterday that the BLM cannot enforce their new fracking rules pending the outcome of the larger case. The judge believes the states (and IPAA and WEA) will prevail in their case–saying that Congress has not specifically granted the BLM the power to regulate fracking. Perhaps this will also put the breaks on the out-of-control EPA in its quest to regulate fracking…
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    OH & Other States Release Report on Injection Wells & Earthquakes

    StatesFirst Seismicity PrimerCountless times MDN has told you that in rare cases, injecting fracking wastewater into a deep, underground Class II injection well (for disposal) can cause earthquakes–if the injection well is located over a fault. When you inject fluids under high pressure into rock formations with a fault it can act like a lubricant, allowing the rocks to slip and slide–causing a low-level earthquake. It’s happened in Ohio. It’s happened (a lot) in Oklahoma. It’s happened in Texas. And in other states too. Thirteen oil and gas states joined together with the Interstate Oil and Gas Compact Commission (IOGCC) and Ground Water Protection Council (GWPC) to form the StatesFirst Initiative, a working group to pool their knowledge and try and figure out how, and under what conditions, injection wells cause earthquakes. Co-heading the initiative is Ohio’s Chief for the Division of Oil & Gas Resources Management (Ohio Dept. of Natural Resources), Rick Simmers. Rick and the working group have just released a 150-page Primer (copy below) to help regulatory agencies evaluate and develop good policies to mitigate and prevent earthquakes from injection wells…
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    Jeb Bush Visits Rice Energy in PA, Ticks Off Sierra Clubbers

    Jeb BushLooking like he’d had his morning Ensure drink, Republican presidential candidate Jeb Bush had plenty of energy as he talked about energy policy in a speech he delivered yesterday at the headquarters of Rice Energy in Washington County, PA. As predicted, Bush said things the oil and gas industry can stand up and cheer for: lift the ban on exporting crude oil, make it easier to export natural gas, and repeal some of the onerous regulations now on the books. He would also roll back Barack Obama’s Clean Power Plan regulations that target coal (and natural gas) with a regulatory death sentence. Below is how it was reported, followed by Bush’s policy paper on how he would handle energy policy if he were to get out of single digits in the polls and get the nomination (something not very likely)…
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    EPA Visits Pittsburgh for Final Hearing on Methane Emissions Law

    what you believeYour beliefs matter. For example, if you believe in the fairy tale of man-made global warming (see Inconvenient Global Warming Fact: Avg Temp Hasn’t Risen in 18 Yrs), then you will attempt to force the greatest country on earth–the United States–to abandon the extraction and burning of fossil fuels. It is that erroneous belief that animates the Kool Aid drinkers in the so-called environmental movement. If you’re a real creep, you try to prey on the unthinking public’s fears that the planet will bake and your health is at risk by continued extraction of fossil fuels. The federal EPA is preying on those fears with their latest power grab to illegally regulate the oil and gas industry through the back door by creating new, unlegislated laws to reduce so-called methane emissions from oil and gas drilling. Regulation of oil and gas drilling is Constitutionally left to the individual states. The EPA wants to corrupt that and was in Pittsburgh yesterday for a final public hearing on their draconian new unlegislated laws on methane emissions. The EPA got an earful–from both anti-drilling wackos and from the oil and gas industry…
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    Sad: NC County Passes 3-Year Moratorium on Fracking

    heartbreakerIt’s heartbreaking, but not surprising, to see residents in a North Carolina make the same mistakes made by residents in New York State. Monday night the Stokes County (NC) Board of Commissioners voted to enact a three-year moratorium on potential shale drilling in the county. Well-meaning but completely ignorant residents agitated and cajoled the commissioners into voting for no drilling. Stokes, located in northern NC, is part of the Dan River sub-basin, which in turn is part of the larger Triassic Basin. Earlier this year the state cleared the way for fracking to begin (see Triassic Park: North Carolina Becomes 34th State to Frack Shale). The ignorant agitators are happy with the moratorium as a first step, but ultimately (like New York) hope they can ban fracking altogether…
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    Halliburton/Baker Hughes Hold a Pre-Merger Garage Sale

    garage saleHalliburton and Baker Hughes are having a pre-merger garage sale. In order for Halliburton to buy Baker Hughes, a deal worth $34.6 billion (see Shotgun Wedding: Halliburton Forces Baker Hughes to Sell), regulators are requiring both companies to shed more of their divisions and subsidiaries. Halliburton’s expandable liner hangers business is on the table. So too is Baker Hughes’ “core completions business,” which includes: packers, flow control tools, subsurface safety systems, intelligent well systems, permanent monitoring, sand control tools and sand control screens. And there’s more on the table, marked down for a quick sale. Because of the additional businesses that must be sold, the wedding/merger date for the two companies may get pushed back to early 2016. Halliburton and BH hope some of their competitors will stop by and pick something up at the pre-merger garage sale…
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    Jeb Bush Visits Rice Energy Today to Unveil New Energy Plan

    Jeb BushLow energy Republican presidential candidate Jeb Bush (as Donald Trump calls him) has decided to inject some high energy (as in the energy industry) into his campaign. Jeb is today visiting the Pittsburgh headquarters of one of the Marcellus/Utica’s most successful drillers–Rice Energy–to unveil his energy plan that calls for the lifting of the crude oil export ban (something our Dear Leader, President Obama, opposes) and for the approval of the Keystone XL oil pipeline (Obama also opposes). However, the thing that makes Jeb’s visit to Rice Energy salient and meaningful for the Marcellus/Utica is that he will call for (a) lifting restrictions on exporting natural gas–making it easier to export natgas to Japan, China and European countries, and (b) fight Obama’s Clean Power Plan (CPP). There is no doubt Bush will say all of the right words and espouse policies the oil and gas industry can strongly support. The question is, will he actually do any of it if he gets elected?…
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    NEPA Democrat Congressman Targets FERC in Effort to Stop Pipelines

    Matt Cartwright
    Congressman Matt Cartwright – Democrat

    An anti-drilling Democrat Congressman from Pennsylvania’s 17th Congressional District (Wilkes-Barre area), U.S. Rep. Matt Cartwright, continues a campaign targeting the Marcellus Shale industry for extinction–an industry that employs many of his constituents and benefits all of his constituents with lower natural gas and electricity prices. Cartwright and other anti-drilling members of Congress have recently changed strategies and are now attacking the Federal Energy Regulatory Commission (FERC) hoping to slow down and stop new pipeline construction. Cartwright sent a letter to the Inspector General for the Dept. of Energy (under which FERC sits) asking the IG to instigate a witch hunt against FERC with the aim of getting FERC to slow down its already molasses-slow permitting process for new pipelines. Cartwright and other members of Congress (from New England) hope they can bully FERC into abandoning its stated charter to dispassionately and without political influence evaluate pipeline projects based solely on their environmental impact to the local communities through which they run…
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    What Have We Learned from EPA’s Gold King Mine Disaster?

    guest postOn January 9, 2014, a Freedom Industries facility next to the Elk River leaked ~10,000 gallons of crude 4-methylcyclohexanemethanol (MCHM) used in coal mining into the river, which is a tributary to the Kanawha River that runs through Charleston, WV. The results of that leak were dramatic. Some 300,000 residents from nine counties in the Charleston metropolitan area were without access to potable water for five days. Several Freedom Industries officials are now in jail and the company went bankrupt because of that single accident. Contrast coverage of that accident with another accident–caused by the federal Environmental Protection Agency (EPA) at the Gold King Mine in Colorado. EPA personnel were fiddling around “testing” at a gold mine wastewater storage impoundment and accidentally unplugged it, dumping 3 million gallons of some of the nastiest wastewater you can imagine–with lead, arsenic and other heavy metals–into the Animas River north of Silverton, CO (see EPA Causes Environmental Disaster in CO; Connection to Marcellus?). The Gold King Mine spill turned the Animas “an opaque orange color reminiscent of boxed mac and cheese.” Question: Should EPA Administrator Gina McCarthy be locked up and the EPA dismantled based on a single accident? Is there a double standard when it comes to environmental reporting?

    Stephen Heins, an energy and regulatory consultant for a Wall Street firm, and former vice president of communication for Orion Energy Systems, is an occasional guest blogger here on MDN. Steve has penned an excellent article (below) that takes a look at EPA’s response to the Gold King Mine disaster. Steve says he’s not second-guessing the accident itself–it was an accident (they do happen). He’s interested in how the EPA responded, what we can learn from it, and whether or not a double standard exists when it comes to environmental reporting about government-caused accidents vs. those caused by private companies…
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    PA DEP Supports Fed EPA Effort to Control “Fugitive” Methane

    fugitiveThe Obama Environmental Protection Agency (EPA) will be in Pittsburgh tomorrow to conduct a hearing into how they can illegally regulate oil and gas drilling through the back door of so-called “fugitive” methane emissions, which they claim are insanely high in shale plays like the Marcellus/Utica (announcement of EPA hearing). The PA Dept. of Environmental Protection (DEP), headed by the PennFuture Secretary of the DEP, John Quigley, will be on hand to support the EPA’s illegal effort. The DEP is planning their own draconian regulations for controlling so-called “fugitive” methane emissions–even though it’s in the best interests of the industry to trap every last molecule of methane they can (it’s what they sell!) and even though year after year the industry gets better at doing it–virtually eliminating fugitive methane. Makes no difference–the heavy hammer of government is preparing to come down to make extracting natural gas more expensive and less profitable with senseless new regulations by Big Brother…
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    PennEast Pipeline Files Official Application with FERC, Antis Mad

    celebrateParty time! Yesterday PennEast Pipeline filed their full, official application with the Federal Energy Regulatory Commission (FERC) for permission to commence building their $1 billion, 118-mile, 36-inch diameter pipeline that will deliver approximately 1 billion cubic feet of natural gas per day from the Marcellus gas fields of northeastern PA to locations in southeastern PA and across the border to Trenton, NJ. The long-term benefits to the pipeline are many–lower natural gas and electricity costs for millions of consumers. In addition, during construction the pipeline will generate an estimated $1.6 billion of economic impact during design and construction alone, supporting approximately 12,160 jobs and an associated $740 million in wages. This is good news for all Pennsylvanians and New Jerseyites. Of course anti-fossil fuel nutters also issued an angry press release claiming the PennEast Pipeline will do “irreparable harm” if built…
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    Quigley Faux Pas: DEP Already has Office of Environmental Justice

    John Quigley
    John Quigley

    The PennFuture Secretary of the Pennsylvania Dept. of Environmental Protection (DEP), John Quigley, may want to familiarize himself a little bit more with his own agency. It might save him some major embarrassments, like the following. Earlier this week Quigley, in an interview with the editorial board of the Washington (PA) Observer-Reporter, said he is planning to create an office of “environmental justice” within the DEP and hire “the right individual” to advise him on policy (see PA DEP Sec. Quigley Wants to Create “Environmental Justice” Office). Uhhh…Sec. Quigley? The DEP already has such an office. It’s called the Environmental Justice Advisory Board (EJAB) and it’s been part of your department since 1999…
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    OH Commission Sides with ODNR Boss to Keep Injection Well Closed

    yes manUPDATE: This is slightly old news–from August. The article we quoted from was run yesterday, but the events actually happened in August. We understand that the case has now been appealed to Common Pleas Court.

    The Ohio Oil and Gas Commission, the five-member advisory council that’s part of the Ohio Dept. of Natural Resources (ODNR) set up to hear appeals from any person claiming to be aggrieved or adversely affected by an order issued by the ODNR’s oil & gas division, upheld a decision by the ODNR to suspend operations at a Trumbull County injection well. The injection well is owned by American Water Management Services and following low-level earthquake a year ago, the ODNR’s Rick Simmers shut two injection wells down (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). Since that time, the ODNR allowed one of the two to reopen, but not the other (see ODNR Clears Trumbull Co. Injection Well in August Quake). The ODNR continues to “investigate” (i.e. drag its feet) so finally AWMS got tired and appealed the decision to the body that hears such appeals. Although supposedly independent, the Oil and Gas Commission works for the ODNR, so it’s no surprise they supported the ODNR in their decision to keep the second well closed…
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    PA DEP Sec. Quigley Wants to Create “Environmental Justice” Office

    what does that meanThe PennFuture Secretary of the Pennsylvania Dept. of Environmental Protection, John Quigley, continues to promote a hard-left agenda inside a once-great agency. Any time a Democrat like Quigley pairs the word “justice” with another word, like “environmental”, you know it’s a bad idea. Quigley is promoting the concept of creating an “office of environmental justice” within the DEP. What does that even mean? Is Quigley implying we currently have environmental “injustice” running rampant through the Commonwealth? Quigley also wants to use revenue raised from an obscenely high severance tax on Marcellus Shale drilling to fund more DEP inspectors to hang out at drill pads. Must be Quigley didn’t get the memo from Wolf that ALL of the severance tax money, if Wolf is lucky enough to get such a tax passed (very much in doubt), has already been promised in a quid pro quo agreement to teachers’ unions that helped get him elected…
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    NRG Won’t Convert Coal Electric Plant to Utica Gas After All

    disappointmentThis is disappointing. For over a year utility and electric generating giant NRG had planned to convert a coal-fired electric generating plan in Avon Lake (Lorain County), OH to burn Utica Shale gas instead. NRG’s plan includes building a $40 million, 20-mile pipeline to feed the Avon plant. That pipeline was finally approved in June (see OH Agency Greenlights NRG Utica Pipeline to Feed Electric Plant). The disappointment is that NRG has just announced they will not convert the plant from coal to natgas after all–at least not any time soon. Instead, they will add new pollution control equipment and continue burning coal. Why the change in plan? Part of the reason has to do with bats…
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    Halliburton Pays $18M in Back Wages, Some Going to PA Workers

    overtime payHalliburton, the second largest oilfield services company in the world and a major presence in northeast drilling, performed a self audit of their 80,000+ employees and found that just over 1,000 (1.4%) of their employees were eligible for overtime but didn’t receive it. Some of those workers are in Pennsylvania Marcellus–39 of them in fact, who are owed a collective $800,000 in back wages. Halliburton turned themselves in to the U.S. Dept. of Labor, admitting the mistake and offering to make it right. The company reached an agreement with the DOL to pay $18,293,557 to 1,016 employees nationwide for uncompensated overtime, one of the biggest such cases “in recent years” according to the DOL…
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