Regulation

Blue Racer Midstream | Energy Services | Industrywide Issues | Monroe County | Ohio | Processing Plants | Regulation

Blue Racer Berne Processing Facility Construction Set to Begin
May 6, 2014May 5, 2014

Blue Racer Midstream is asking Monroe County, OH to approve a new, large electric transmission line that will run about 2,000 feet from a mainline to its Berne processing complex site. When the first phase of the Berne site is complete it will process 200 million cubic feet per day of natural gas. If all goes according to the new plan, construction will begin in early June and be completed in late August. Blue Racer has asked for approval of the new 138 kV transmission line, which will power some really big compressor engines, to be “expedited” by the county.

Here’s more on the Berne facility…
Read More “Blue Racer Berne Processing Facility Construction Set to Begin”
Accidents | Industrywide Issues | Regulation | Statewide WV | West Virginia

Expensive New OSHA Regulations on the Way for Shale Industry
May 6, 2014May 5, 2014

Mainstream media has found a new issue to focus on in shale drilling–death. As in the death of shale workers. The Charleston Gazette reports on the job deaths in the oil and gas industry in West Virginia over the most recent five year-period have gone way way up–all the way to 13 over the past five years (up from 5 for the previous five years). We’re not making light nor minimizing the risks to workers–far from it. However, if the number of people working in the industry doubles or triples (as it has), the law of averages say accidents and fatalities will double or triple too. It’s, uh, common sense.

To provide a little perspective, a worker is more like to die on the job working in a restaurant or hotel than in the oil and gas industry (see Explosion & Fire at Chevron Well in SWPA – 1 Person Missing). Why the hue and cry over death in the shale industry? To justify expensive new regulations on the way from Obama’s OSHA, of course…
Read More “Expensive New OSHA Regulations on the Way for Shale Industry”
Chautauqua County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Unusual Letter to the Editor in Upstate NY Newspaper
May 5, 2014May 5, 2014

A letter to the editor published in the Jamestown, NY Post-Journal is so unusual, it caught our eye and made us want to share it with you. As you know, there is an ongoing moratorium (let’s just call it a ban, because that’s what it really is) in New York–going on almost six years now. Some 70,000 landowners and a lone energy company, Norse Energy, are the only ones with the guts to sue to break the ban (see NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah).

The letter to the editor we noticed is in some respects like many others. It points out the rank hypocrisy of anti-drillers in NY who oppose shale drilling when 1/3 of the state–including many in the anti-drilling movement–heat their homes with fracked natural gas from Pennsylvania, Ohio and West Virginia. The letter also points out some other key arguments. The unusual thing about the letter? It’s from a former member of the NY State Assembly–a Democrat. THAT caught our attention…
Read More “Unusual Letter to the Editor in Upstate NY Newspaper”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation | Utica Shale

20 Youngstown U Profs Attempt PR Stunt on Frack Ban – Goes Limp
May 2, 2014May 2, 2014

On Wednesday, 20 Democrat faculty members who teach at Youngstown University, most of whom (perhaps all) are *not* professors in the geosciences area (i.e. they’re clueless about fracking) attempted a PR stunt that well, went limp. They all endorsed a frack ban that’s coming around for the THIRD time on the ballot in Youngstown (voting happens May 8). Even the Democrat mayor of Youngstown knows that such a ban would be a “jobs killer” for the city and recommends a “no” vote next week (see Anti-Drillers Force 3rd Vote on Frack Ban in Youngstown).

Here’s the limp effort from 20 professors at a university you probably should not send your children to because people like those listed below mis-teach there:
Read More “20 Youngstown U Profs Attempt PR Stunt on Frack Ban – Goes Limp”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation

EDF Endorses Drilling & Fracking Again, Sort Of
May 1, 2014May 1, 2014

Former Mayor of New York City Michael Bloomberg, a very wealthy Democrat who ran as a Republican and then changed to become an Independent, along with the mostly anti-drilling head of the Environmental Defense Fund, Fred Krupp, teamed up to write an op-ed which they sent around to, well, everyone, including MDN. The New York Times picked it up and ran it, so we though we would insert it below. It essentially says regulations so strict they force the breath out of shale drillers is a good thing. So let’s continue to let them drill, as long as they jump through fractals of hoops while they do it.

The piece is noteworthy because the EDF, the “best” of the anti-drilling wacko so-called environmentalist organizations, frequently is criticized by their wacko “green” brethren because they won’t call for an outright ban on all shale drilling. And indeed in this op-ed Krupp endorses shale drilling and fracking–but like we said, as long as it’s regulated so tight it leaves drillers with little profit or incentive…
Read More “EDF Endorses Drilling & Fracking Again, Sort Of”
Industrywide Issues | Pennsylvania | Regulation | Seismic Testing | Statewide PA

Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law
April 30, 2014April 30, 2014

Anti-drilling Democrat PA Rep. Robert F. Matzie (District 16) is set to introduce new legislation in the Republican-controlled PA House that will make it nearly impossible for seismic testing to take place in the state. He intends to introduce a bill that automatically assumes seismic testing is responsible for damage to property within 1,000 feet of where it happens. If a thumper truck goes down your road, and you want to get that crack fixed that’s been in your basement wall for the past 10 years, here’s your chance. Just claim seismic testing is at fault and send the bill to the testing company. Nuts.

Here’s the rather funny announcement from Matzie saying this legislation is really not anti-drilling, oh no, and that he only wants to protect Pennsylvanians from evil, nasty seismic testing companies…
Read More “Anti-Drilling PA Dem Rep. Matzie to Introduce Seismic Testing Law”
Blair County | Industrywide Issues | Pennsylvania | Regulation

Altoona Hearing on Latest EPA Outrage: Redefining Clean Water Act
April 29, 2014April 29, 2014

The latest breath-taking power grab attempt by the rogue and out-of-control federal Environmental Protection Agency was highlighted at a Congressional hearing held yesterday in Altoona, PA. The EPA wants to redefine which bodies of water fall under the 1972 Clean Water Act–so that the agency essentially would oversee not only “navigable waterways” but all waterways, usurping states rights in the process. It is, as Congressman Bill Shuster (from PA) said, more evidence of President Obama’s “imperial presidency”–by which he means Obama is grabbing power by force that is not his Constitutionally. The hearing yesterday was an attempt to point out the perils of the EPA’s latest overreach.

Shale drillers clearly understand the implications and at least one attended to voice concerns. According to CONSOL Energy, the new “guidelines” from EPA would add upward of $10 million per natgas pipeline they install due to the delays, paperwork and new hoops they will need to jump through. It is unnecessary and (in our opinion) unconstitutional…
Read More “Altoona Hearing on Latest EPA Outrage: Redefining Clean Water Act”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters
April 29, 2014April 29, 2014

In a hilarious set of meetings with reporters in Harrisburg, PA, Democrat primary candidate for governor Allyson Schwartz had a spitting and sputtering fest. We truly wish we were there. She repeatedly attempted to lob verbal molotov cocktails at both Republican Gov. Tom Corbett (running for re-election) and at her chief primary rival and fellow anti-driller Tom Wolf. But the verbal bombs she lobbed just wouldn’t go off–and one of them exploded in her own face. At times pleading and at other times scolding, Schwartz essentially begged reporters to criticize Wolf and Corbett on her behalf.

One of those reporters had had enough and asked her: since Tom Corbett has released 10 years of tax returns, why don’t you? Schwartz went nearly apoplectic. How DARE a reporter challenge the Queen Bee!? Her response was, essentially, “good for thee but not for me.” Which is the way anti-drillers like Schwartz always operate, with double standards…
Read More “Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?
April 28, 2014April 28, 2014

On Friday two major stories developed involving Norse Energy. You may recall Norwegian-based Norse Energy rolled the dice and placed all their bets on shale drilling in New York State, leasing some 180,000 acres, of which 130,000 acres are in the Marcellus and/or Utica Shale region. Never in their wildest dreams did Norse believe it would take six years or more for the state to allow high-volume hydraulic fracturing. Things started to go downhill for Norse when landowners sued to say Norse did not have the right to continue the leases indefinitely (beyond five years) because of New York’s tardiness in approving fracking (see New Rough Patch for Norse Energy: Force Majeure Lawsuit). Eventually the state’s ongoing moratorium on fracking led to Norse’s bankruptcy (see Lights Turned Off, Door Closed – Good Night, Norse Energy). Norse sued the state to force it to release fracking regulations so their remaining asset, the leases, could be sold for at least some value to compensate investors (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs).

Here’s where it gets complicated. On Friday in U.S. bankruptcy court, three bids for the leases and other company assets were unsealed. The highest was for $2.65 million–which is pennies on the dollar compared to the value of the company just a year ago before NY’s action forced it into bankruptcy. The New York Post reported the company behind the winning bid was hedge fund Mason Capital. From what MDN is able to determine, that may not be correct. The highest bid was from Any Acquisition, LLC–which may or may not be backed by Mason Capital. More important, there has been no official word that the judge awarded the sale to anyone on Friday. Below we tackle a complex deal-in-the-making and sort it out with help from our friends at NGI’s Shale Daily, who did some proper, old-fashioned reporting and got the real goods…
Read More “Highest Bid for Norse Energy $2.65M – Was it Sold & Who Bid?”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah
April 28, 2014April 28, 2014

On Friday a lower court judge heard testimony in the “Article 78” case brought by Norse Energy and the Joint Landowners Coalition of New York (JLCNY) against Gov. Cuomo, Dept. of Environmental Conservation Commissioner Joe Martens, and State Health Commissioner Nirav Shah–to force the release of new fracking regulations. Sadly, the man who is supposed to work for the residents of New York, Attorney General Eric Schneiderman, decided instead he works for the man-child who can’t make a decision, Andy Cuomo, so he filed a motion to dismiss the Article 78 lawsuit brought by Norse and the JLCNY (see NY AG Schneiderman Files to Dismiss JLCNY Lawsuit Against Cuomo). The judge on Friday held a hearing to consider that motion. Fortunately, the motion to dismiss was not granted. Not yet anyway.

The heart of Friday’s hearing centered on the issue of, “How long is long enough?” for the state to conduct a review and release new drilling regulations. We have quotes from various sources who were there. It was obvious the judge grilled the pro-drilling side harder than the rep from the AG’s office. However, near the end (as you’ll see below), the AG rep shot herself right in the foot and perhaps tilted the chances for the lawsuit to go forward in favor of Norse/JLCNY…
Read More “NY Hearing on JLCNY/Norse Lawsuit v Cuomo, Martens, Shah”
Allegheny County | CONSOL Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

CONSOL to Begin Drilling at Pittsburgh Airport Next Week
April 25, 2014April 25, 2014

The last hurdle has been jumped for CONSOL Energy with their plan to begin drilling at Pittsburgh International Airport. MDN has extensively covered the plan put forward by CONSOL to drill 47 wells on airport property–a plan that will ultimately net the airport something like $1 billion in revenue (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). The last hurdle was zoning permit approval from Findlay Township, where the property is located. MDN pointed out more than a month ago that Findlay was holding things up (see Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport).

Wednesday night, Findlay supervisors voted 2-1 to approve CONSOL’s permits to drill at the airport. But not without 23 “conditions” attached to their approval, including limits on noise, working hours, creation of a public complaint hotline and air monitoring throughout drilling operations. Still, CONSOL was happy with the end result and says they’re ready to begin, as early as next week, a drilling program that will be “a model for the entire nation”…
Read More “CONSOL to Begin Drilling at Pittsburgh Airport Next Week”
Allegheny County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Olympus/Huntley & Huntley | Pennsylvania | Range Resources Corp | Regulation

Republicans (!) Seek to Slow Approval of Deer Lakes Park Lease?
April 25, 2014April 25, 2014

To us, a somewhat strange case in the ongoing effort for Allegheny County, PA to lease land under Deer Lakes Park for drilling. Allegheny County Executive Rich Fitzgerald squeezed Range Resources hard and negotiated a deal to allow Range to drill under (not on) Deer Lakes Park for a $4.7 million in signing bonus and 18% royalties, which will net the county something over $70 million over the next 20-30 years (see Allegheny Co Exec Bests Range on Deer Lakes Park Lease Deal). It’s a sweet deal. The only thing that remains is for the 15-member county council to approve it.

The strange part is a bid by a pair of Republicans to enlist outside legal counsel to review the lease–when council already has its own attorney for that purpose. Normally it’s the Republicans who are pro-drilling. The effort to get outside counsel, which failed in committee along a party-line vote of 5-2, is nothing more than a “stall tactic” according to Rich Fitzgerald. That’s the strange part–why would the Republicans want to delay this lease? Council will meet next Wednesday to take up the Deer Lakes Park lease again–hopefully to approve it…
Read More “Republicans (!) Seek to Slow Approval of Deer Lakes Park Lease?”
Air Quality | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations
April 25, 2014April 25, 2014

The Babst Calland law firm has put out an alert that proposed new rules recently issued by the Pennsylvania Environmental Quality Board to require “reasonably available control technology” (RACT) will affect “hundreds of facilities” that produce nitrogen oxides (NOx) or volatile organic compounds (VOCs), requiring them to spend money and install new equipment. There are nine source categories covered by the new rule, and although none of those categories say “compressor stations,” one of them is “turbines” which may cover compressor stations. At any rate, pipeline compressor stations are a major source of NOx and VOCs and will almost certainly be affected by the coming changes.

Here’s the Administrative Watch for the RACT proposed rules, issued by the legal beagles at Babst Calland:
Read More “New PA Regs Limiting NOx/VOC Likely Affect Compressor Stations”
Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA HB 1684 Guaranteed Minimum Royalty Act Hits a Snag
April 24, 2014April 24, 2014

For nearly a month, the National Association of Royalty Owners (NARO) Pennsylvania Chapter has been pushing for passage of House Bill (HB) 1684, the Guaranteed Minimum Royalty Act (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). HB 1684 would ensure landowners get a minimum 12.5% in royalty payments from drillers. This is in response to alleged rumors that Chesapeake Energy has been screwing landowners by deducting transportation and other costs in a somewhat underhanded way. HB 1684 is supposed to stop that–going forward.

However, HB 1684 has “hit a snag” according state Rep. Matt Baker. As MDN has previously noted, this particular bill has divided landowners and drillers, something we don’t see often (see Rare Schism Between Landowners & Drillers over PA Royalty Law). The latest on the fate of HB 1684:
Read More “PA HB 1684 Guaranteed Minimum Royalty Act Hits a Snag”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

800 NY Officials Work Against Constituents to Ban Fracking
April 23, 2014April 23, 2014

A group of 800 elected New York State officials has decided to actively work against the best interests of their constituents. Only in New York, right? A group calling themselves Elected Officials to Protect New York, mostly comprised of members from outside of where shale drilling would happen, are spreading lies about the so-called dangers of drilling and calling on the state to extend a nearly six year-old moratorium. Which of course is a joke–the ongoing moratorium is in essence a ban. Extending it is a euphemism for ban it permanently.

Their motivation is irrational fossil fuel hatred. They believe we can stick up solar panels and wind mills all over the place and replace those evil, nasty fossil fuels–including “fracked” natural gas. They are, in a word, nuts. Here’s the bupkis emanating from the so-called “Elected Officials to Protect New York”…
Read More “800 NY Officials Work Against Constituents to Ban Fracking”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Ohio | Preferred Fluids Management | Regulation | Richland County | Wastewater

Anti Group Stops Wastewater Injection Wells Near Mansfield, OH
April 23, 2014April 23, 2014

Anti-drilling group Frack Free Ohio (we call them Fracking Up Ohio) is claiming victory in stopping a pair of proposed frack wastewater injection wells that were planned for Mansfield (Richland County), OH. Fracking Up spread enough lies and innuendo around to confuse 63% of the voters into passing a resolution opposing the injection wells. Since the company planning to build the injection wells just wasted $200,000–now down the toilet–you can expect other Utica-related companies to give Mansfield a pass in the future. Bye bye jobs. Bye bye increased tax revenues. Bye bye Mansfield.

Now the folks from Fracking Up Ohio want to spread their anti-drilling disease to other locations–like Ashland and Crawford counties…
Read More “Anti Group Stops Wastewater Injection Wells Near Mansfield, OH”