Regulation

CNG/LNG | Industrywide Issues | New York | Regulation | Statewide NY

Liberty Says “Non-Fracked” Trinidad Gas Better than Marcellus Gas
March 26, 2015March 26, 2015

For some time a controversy has been brewing in (where else?) New York State. But this controversy isn’t about fracking–at least not directly. Liberty Natural Gas filed a plan back in 2010, prior to the Marcellus Shale revolution, to construct an off-shore LNG import (not export) facility off the coast of New York and New Jersey–in the ocean. A floating LNG facility. A pipeline would run from the off-shore terminal to Jones Beach, NY and from there would connect to a Transco pipeline lateral. But something happened on the way to the forum–the Marcellus Shale boom. There is no longer a need for the terminal. Anti-drillers (anti-fossil fuelers, really) are dead set against it. The Marcellus revolution caught a lot of people by surprise, including Liberty. So did Liberty acknowledge the project is no longer needed? Nope. They’re trying to convince anti-drillers the project is still needed because it will bring in “non-fracked” gas from places like Trinidad. That is, they’re shooting the very industry they belong to right in the head, and attempting to appease the nutters on the other side that will never be appeased. Not a very smart move by Liberty…
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Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Prof. Engineers Likely Need Contractor License to Keep Working
March 26, 2015March 26, 2015

If you’re a professional engineer (PE) working in the Marcellus/Utica Shale in West Virginia, listen up. You may (probably will) be required to become a licensed contractor in the State of West Virginia. It’s a bit convoluted under what circumstance you do and do not need a contractor’s license. This is how law firm Steptoe & Johnson (who just won the “Law Firm of the Year” award at the Oil & Gas Awards for the Northeast, congrats!) explains it…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Marcellus Industry to DEP Tech Advisory Bd: You’re Out of Order!
March 25, 2015March 25, 2015

The Marcellus industry in Pennsylvania is none too happy with the performance thus far of Acting Secretary of the Dept. of Environmental Protection, John Quigley. As MDN has noted, Quigley first fired the members of the DEP’s Oil & Gas Technical Advisory Board (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?), then he pulled a fast one, changing up revised drilling rules that were already done and ready to go under Tom Corbett’s administration (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Needless to say, Quigley isn’t impressing anyone so far. The reporters at Marcellus.com have noticed and selected out some choice comments by the industry, illustrating their frustration with the new regime. One comment even channels Al Pacino…
Read More “Marcellus Industry to DEP Tech Advisory Bd: You’re Out of Order!”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland’s Democrat House & Senate Pass Anti-Fracking Bills
March 25, 2015March 25, 2015

On his way out the door of the governor’s mansion in Maryland, then-Gov. Martin O’Malley decided to issue new rules to allow fracking (see Maryland Gets Ready to Frack! Gov O’Malley Files New Regulations). Which at the time we thought was really odd. O’Malley is an anti-drilling Democrat who obstructed fracking for the past four years he was in office. Why the change of heart on his way out the door? Now we know. He wants to run for president–and no one can run for president on a platform of stopping shale drilling. No matter what his motivation–what counts is that Maryland is seeing movement toward using the miracle of fracking. Except now both the Maryland House and Senate have just passed anti-fracking bills, one of which would slap a new moratorium on fracking for yet another three years. The good news is that Maryland’s new governor, Republican Larry Hogan, is pro-fracking and sure to veto any such nonsense…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Marcellus Industry Consolation Prize: DEP Conventional Board
March 24, 2015March 24, 2015

Pennsylvania Dept. of Environmental Protection Acting Sec. John Quigley packed the DEP’s Oil & Gas Technical Advisory Board with members who will rubber stamp his onerous new drilling rules (see PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules). Quigley used the excuse that the board was splitting in two, one board (the TAB) to cover unconventional/shale drilling, the other–Conventional Oil and Gas Advisory Committee (COGAC)–to cover traditional, vertical-only drilling. TAB is arguably the more important board because conventional drilling, which once was the only kind of drilling in the state, has all but shriveled up. There’s hardly any conventional drilling in PA these days. So with the TAB safely full of Quigley acolytes, it’s time to hand out the consolation prizes to the industry by giving them seats on the COGAC. Which is exactly what happened yesterday…
Read More “PA Marcellus Industry Consolation Prize: DEP Conventional Board”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec Quigley Pulls a Fast One, Changes Drilling Rules
March 23, 2015March 23, 2015

Perhaps we now know why PA’s Acting Secretary of the Dept. of Environmental Protection, John Quigley, fired the entire DEP Oil & Gas Technical Advisory Board once he took office, something no other incoming governor/administration has done in more than a generation (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?). Why? To pack the board with new members who will agree to onerous changes to the 1984 PA Oil and Gas Act. Changes to the Act were required under the 2012 Act 13 law (see Rewrite of 1984 PA Oil and Gas Act Underway). A very long and detailed process took place over the past three years and that process was very nearly complete–frankly was complete, until Tom Wolf was elected governor. Wolf’s election put the final adoption of new rules on hold. In came the PennFuture administration (Quigley along with Cindy Dunn as head of the Dept. of Conservation and Natural Resources and John Hanger as Wolf’s head of policy are all alumni of the anti-drilling PennFuture). The PennFuture brigade has screwed around with the rules, adding their own anti-drilling changes, and they now want the Technical Advisory Board to rubber stamp it. Needless to say, the Marcellus industry isn’t taking it well…
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Hydraulic Fracturing | Industrywide Issues | Regulation

BLM Introduces “Final” Fracking Rules for Fed Lands – 3 Yrs Late
March 23, 2015March 23, 2015

Last Friday the Dept. of Interior’s Bureau of Land Management (BLM) released its final version of new fracking rules for drillers who frack on public and trial lands in the U.S. The BLM has been working on the new rules since 2012 (see BLM Issues Proposed New Rule for Fracking Federal Lands). After negative feedback, BLM reworked the rules several times since the original draft in May 2012. Why does this issue matter for MDN readers? For one, there is some federal land in the northeast–not a lot–but some, that may be impacted. The larger reason is that clearly the overreaching activist federal government under Barack H. Obama has its sights set on federal control of fracking–not just on federal land but all private land as well (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking). Yes it’s a stretch and ambitious, but then, who in their right mind would have thought Democrat Congress members would have sold out their constituents and passed Obamacare? In other words, stranger things have happened. We need to pay attention to what the feds are doing with fracking. So far, both the oil and gas industry and the so-called environmental movement are not happy with the final rules. In fact, the industry immediately filed a lawsuit to stop the new rules from taking effect–and “environmentalists” like the vapid Mark Ruffalo are kicking up a fuss…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation

“Green” Dems Introduce ‘Frack Pack’ Bills to Take Over Drilling
March 23, 2015March 23, 2015

Listen to this load of cow manure coming from so-called environmentalists and their willing accomplices in Congress who are willing to spread it around the Capitol (perhaps hoping to fertilize the spring daffodils). With backing from Big Environment, several members of Congress have introduced a set of bills that mean a federal takeover of all oil and gas drilling in the country. Said Congresspersons are calling the bills the “Frack Pack.” The bills will add another set of teeth to the Safe Drinking Water Act, Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act that will mean the federal government will get to oversee all unconventional oil and gas activity. It’s a lib Dem’s dream come true–except the bills don’t stand a chance. It’s all window dressing–for show and fundraising purposes–to keep the greenies giving their greenbacks to the green whores in Congress…
Read More ““Green” Dems Introduce ‘Frack Pack’ Bills to Take Over Drilling”
Energy Companies | Industrywide Issues | Regulation | Southwestern Energy | Statewide WV | West Virginia

SWN “Rigging Up” in WV, Plans to Drill 50-70 Wells in 2015
March 20, 2015March 20, 2015

In February, West Virginia passed a new law “fixing” an old law. The old law, which was itself a new law just a few years ago, stipulated if oil and gas leases/operations change hands, the new owner must apply for permits to drill all over again, even if the previous owner had already been awarded those permits. This was a really big problem for Southwestern Energy that had just purchased $5 billion worth of leases and operations from Chesapeake Energy, most of it in WV. So the WV legislature passed, in record time, a law to fix the problem–and Gov. Earl Ray Tomblin signed it (see WV Gov Tomblin Signs “We Love You Southwestern” Bill into Law). And none too soon. We’re now six weeks later and Southwestern says they’re now “rigging up” and beginning to drill in WV, with plans to drill 50-70 wells this year in northern WV. Southwestern is very happy with WV’s quick action and is giving them a big, sloppy kiss right back…
Read More “SWN “Rigging Up” in WV, Plans to Drill 50-70 Wells in 2015″
American Water Management | Energy Services | Industrywide Issues | Ohio | Regulation | Trumbull County | Wastewater

Decision on Restarting Trumbull County, OH Injection Well Coming Soon
March 20, 2015March 20, 2015

How long does it take the Ohio Dept. of Natural Resources to investigate whether or not an injection well is causing low-level earthquakes? Apparently a long time–6 months at least. Last September two wastewater injection wells were ordered to suspend operations in Trumbull County, OH following an earthquake on August 31st that was so minor nobody felt it (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). Even though nobody felt it, the seismographs at the U.S. Geological Survey picked it up–and that was enough for ODNR. It only took about two weeks for ODNR to clear one of the two wells, the shallower well (see ODNR Clears Trumbull Co. Injection Well in August Quake). ODNR let American Water Management Services (AWMS) restart their AWMS #1 injection well. But so far ODNR won’t let them restart AWMS #2. AWMS is losing big money every day the well is closed, so they filed an appeal with the Ohio Oil & Gas Commission in October. The hearing was (finally) held on March 11…
Read More “Decision on Restarting Trumbull County, OH Injection Well Coming Soon”
Energy Services | Industrywide Issues | Pipelines | Regulation | Williams

Williams Files with FERC to Expand Transco Pipeline from NJ to MS
March 20, 2015March 20, 2015

Yesterday Williams announced that its Transco pipeline subsidiary filed an application with the Federal Energy Regulatory Commission (FERC) for its Dalton Expansion Project, which will expand the Transco and flow more Marcellus Shale gas from New Jersey all the way to Mississippi, primarily for electric generation plants, but also for local natural gas distribution by utilities. Transco had a very successful open season and has customers signed up under binding contracts for 100% of the Dalton Expansion Project, which will increase the Transco’s capacity by 448,000 dekatherms per day of natural gas. To help pay for the project, Williams has entered a 50/50 joint venture with AGL Resources’ Dogwood Enterprise on a portion of the pipeline to be built in Georgia. Here’s the details…
Read More “Williams Files with FERC to Expand Transco Pipeline from NJ to MS”
Electrical Generation | Energy Services | Industrywide Issues | Maryland | Pipelines | Regulation | Statewide MD | Transco | Williams

Williams Gets FERC Approval for 11-Mile Pipeline in NE Maryland
March 20, 2015March 20, 2015

Good news! Williams announced yesterday that the Federal Energy Regulatory Commission (FERC) has approved their Transco pipeline application to expand the Transco system and construct an 11-mile pipeline lateral connecting Transco to an electric power generating facility in Cecil County, Maryland. The “Rock Springs expansion project” will transport 192,000 dekatherms of natural gas per day to Old Dominion Electric Cooperative’s soon-to-be-built Wildcat Point Generation Facility. Wildcat will generate 1,000 megawatts of electricity–enough to power 390,000 homes in the region…
Read More “Williams Gets FERC Approval for 11-Mile Pipeline in NE Maryland”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation

FERC Clears the Room at DC HQ After Riff Raff Start Mouthing Off
March 20, 2015March 20, 2015

As MDN recently reported, anti-fossil fuel protesters have a new target–the Federal Energy Regulatory Commission (FERC). Nutjobs and people without day jobs regularly show up at FERC headquarters to cause trouble. One of them has been banned, permanently (see Anti-Driller Banned from FERC Headquarters for Disruptive Behavior). It got to the point that when FERC held open meetings where the public can attend, they were routinely disrupted by ne’re do wells. So FERC, earlier this month, adopted a new rule used by other federal agencies to deal with people who become lawless at their meetings (see NGI’s Daily Gas Price Index, Protests Reined in By New FERC Rule). Yesterday was the first open meeting at FERC headquarters in Washington, DC since the new rule went into effect and true to form, the hooligans were out in force. So FERC Chairwoman Cheryl LaFleur stopped the meeting and under the new rules cleared the room of the riff raff who were bleating about the Cove Point LNG export facility currently being built in Maryland…
Read More “FERC Clears the Room at DC HQ After Riff Raff Start Mouthing Off”
Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Fixes Above Ground Tank Law, Now Less Onerous for O&G Industry
March 20, 2015March 13, 2017

As MDN reported a year ago, WV legislature passed SB373, the “storage tank” bill, in the closing hours of the 2014 legislative session (see Fate of 3 WV Laws that Impact Marcellus/Utica Drilling). That bill was in response to a chemical leak that affected the drinking water for 300,000 WV residents. Even though the leak was not related to oil and gas drilling (it was related to coal mining), the new rules governing above ground storage tanks for chemicals affect a number of industries, including the Marcellus Shale drilling industry (see Impact of WV’s New Chemical Tank Law on Marcellus Drillers). There was a lot of confusion about the new law which requires just about all aboveground tanks (except your toilet) to be registered. WV ended up creating a new website to handle the confusion around the law (see WV DEP Launches New Website to Assist with Storage Tank Law). The writing was on the wall. It was obvious the law, as written, was totally unrealistic and unworkable. The 2015 legislative session recently closed, but before it ended, WV legislators passed a partial repeal of the 2014 law–to fix it so it’s actually now workable…
Read More “WV Fixes Above Ground Tank Law, Now Less Onerous for O&G Industry”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

Hall of Shame: Republicans Cancel Fracking Under OH State Parks
March 19, 2015March 19, 2015

Whew–that’s a relief! Ohio state parks are “safe” from that filthy, evil villain “fracking.” It would just be beyond the pale to allow fracking under (not on) state parks which could bring millions of dollars into the coffers of Ohio for RINO Gov. John Kasich to redistribute–say in property tax reductions (like he wants to do with revenue from a super-high severance tax). No no. That goes just too far. We can’t have the state making money from a safe activity like fracking under state parks. And so, once again, Republicans in Ohio have caved. They’ve backed down from a plan that would allow safe drilling under state parks–drilling that towns and cities and numerous municipalities in eastern Ohio allow–because…because they’re spineless? Well, yes! Newly elected House Speaker Cliff Rosenberger, R-Clarksville is one of the spineless wonders. House Energy and Natural Resources Chairman Al Landis, R-Dover, is another. RINO in chief Gov. Kasich was also opposed to safe drilling under state parks, that is, he was for it before he was against it…
Read More “Hall of Shame: Republicans Cancel Fracking Under OH State Parks”
Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Shell | Statewide PA

Shell #2 to Receive Sustainable Shale Development Certification
March 19, 2015March 19, 2015

The Center for Sustainable Shale Development (CSSD) announced yesterday that a second company has achieved the organization’s vaunted seal of approval: Shell. You may recall last September Chevron became the first Marcellus driller to receive CSSD certification (see CSSD Bestows First Certification for Sustainable Drilling: Chevron). Both Chevron and Shell, along with EQT and CONSOL Energy, are founding members of the organization. The CSSD is a partnership between the Marcellus industry and environmental groups to boost the standards–and the image–of shale drilling. It got its start two years (see Important: Drillers & Enviros Form New Group, Launch Cert Program). MDN was initially critical of the organization, with concerns about the expense of a certification for smaller companies–and because CSSD may be setting artificially high requirements that won’t “protect” the environment any more than existing state standards–why spend money and jump through hoops when there’s no real gain in environmental protection? (It also didn’t help that their early attitude was our way or the highway.) However, we’ve spoken to both Andrew Place of EQT, the original acting executive director for the organization, and Susan LeGros, current executive director. In speaking with them, many of our concerns were addressed. We’re not yet full-blown fans, but we’re also not taking pot shots at the organization. Their objective is a worthy one. Will it catch on? That remains to be seen. Here’s the announcement that Shell is now CSSD certified…
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