Regulation

Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

Will WV Lawmakers Have Guts to Tackle Cuttings in Landfills Bill?
March 3, 2014March 3, 2014

Two weeks ago MDN told you about a House Bill (HB) 4411, actively under consideration by the West Virginia state legislature, that would codify into law the right for landfills in the state to accept Marcellus and Utica Shale drill cuttings (see WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition). At the time a parade of speakers spoke against the bill with one speaker (from the Independent Oil and Gas Association of West Virginia) speaking in favor. The bill would codify into law the right for landfills to accept larger amounts of cuttings, which anti-drillers object to because it encourages more drilling.

What we didn’t know at the time is why the WV Dept. of Environmental Protection is supporting the bill: because it will codify into law the protections they drafted as a temporary measure (now in place). Yes, protections, like separating the cuttings into their own cell within a landfill, the use of special liners, and lechate monitoring. The DEP is keeping a close eye on this issue and believes the proper place to have the debate about it, along with a resolution to the debate, is in the state legislature–if they have the intestinal fortitude to address it…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Voting for the Lesser of the PA LibDem Loonies
March 3, 2014March 3, 2014

There’s at least a few prominent Democrats running in the primary for Lieutenant Governor that have departed from the Democrat Party’s lunatic demand to stop all Marcellus drilling in the state–precious few, but at least a few that don’t share that view. So if you’re a registered LibDem and you must (hold your nose and) swing the lever for a Dem, you might want to consider who should get your vote based on their loony rating.

Hint: Don’t vote for Brenda Alton or Brad Koplinksi, both support an immediate ban on further shale drilling…
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Accidents | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Marcellus Industry’s Biggest Fines & Biggest Violators
February 28, 2014February 28, 2014

NPR’s StateImpact Pennsylvania is only too happy to bring us the breathless news of who the baddest of the bad were in the Marcellus drilling industry in PA for 2013. How do they measure who was naughty and who was nice? Well, they’re all naughty (right?), but the naughtiest were those who paid the biggest fines last year. It may surprise you to know that the when you add all fines together, the company paying the most in 2013 was Williams, a pipeline operator–not a driller. Williams settled up in 2013 for violations going back several years, mostly related to accidents and drilling mud spills that resulted from foul weather (including Hurricane Irene and Tropical Storm Lee). Williams’ total fine tab in 2013 was $388,694 (for violations occurring in 2011-2012). Coming in at #2 was National Fuel Gas Company’s Seneca Resources subsidiary. They were clipped $377,000 for violations occurring from 2010 to 2013.

Below are the top 5 violators cumulatively (adding up all of their violations), along with the top 5 biggest single violations from last year, in the PA Marcellus drilling industry:
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Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County

Mt Pleasant Twp Shenanigans re Range Request for Water Ponds
February 28, 2014February 28, 2014

This is what happens when local townships create their own oil and gas zoning laws: chaos and confusion. Like that in Mt. Pleasant (Washington County), PA over water impoundments (ponds) that Range Resources wants to use for drilling in nearby townships. Mt. Pleasant was one of seven infamous anti-drilling townships that sued the state (and eventually won) to overturn the Act 13 law, a law that provided for expert, even-handed and uniform zoning practices throughout the state with regard to oil and gas drilling (see Happy Story Ends Badly Because of 7 PA Towns). What’s left in the wake of overturning Act 13 is petty squabbling by town boards ill-equipped to handle complex oil and gas oversight–i.e., Mt. Pleasant.

We’ve chronicled the long history of Range’s ongoing disagreement with Mt. Pleasant over water impoundments (see previous MDN stories on Range & Mt. Pleasant). The latest Mt. Pleasant town board shenanigan is to impose yet another delay:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Attorney General Actively Works Against 70K NY Landowners
February 27, 2014February 27, 2014

As hard as it is to believe, New York’s Attorney General continues to work against his own constituents. We’ve known since his election that Democrat Eric Schneiderman is anti-drilling–what we didn’t know was was how much of an activist he would be, using his office to further his own distorted views on oil and gas drilling. He’s misused the power of the subpoena to go after drillers (see NY Attorney General Schneiderman Subpoenas Shale Drillers). He’s abused the power of his office to investigate town board members in towns that voted to “wait and see” (i.e. not ban) shale drilling (see NY Attorney General Investigates Towns Who Won’t Ban Fracking).

Now, unbelievably, he has asked the court (and succeeded) in delaying a lawsuit brought by 70,000 New York residents–the people he’s sworn to protect–against Gov. Andrew Cuomo. It seems that Cuomo is the only person in the state Schneiderman wants to protect. He’s Andy’s personal junk yard guard dog–on a not-so-short leash. The Joint Landowners Coalition of New York (JLCNY) recently sued Cuomo with an Article 78 lawsuit, in essence asking the court to force Cuomo to do the job he won’t do and release new oil and gas drilling regulations (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah). Schneiderman has gotten the court to delay any action on the lawsuit from March 7 to April 4, to give Schneiderman and his lieutenants, what, more time after 5 1/2 years?…
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Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | Taxation

Happy Story Ends Badly Because of 7 PA Towns
February 27, 2014February 27, 2014

Who doesn’t like a county (or state) park, or a newer trend–converting old railroad beds into “rail trails”–resurfacing them for walkers, joggers, bikers and roller skaters? We sure love and use them. This story begins happily, with York County spending $100,000 to improve the Old Northern Central Railroad tracks and a portion of the York County Heritage Rail Trail that runs alongside them. Where did the money come from–taxpayers? Nope. It came from the Marcellus Shale industry, from the impact fee levied as part of the Act 13 law. In fact York County has received, so far, nearly 3/4 of a million dollars from that fund–even though there’s no active shale drilling in the county–thanks to Act 13.

But the story ends badly, because quite likely starting next year, all of that impact fee money will disappear (see PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt). There will be no more impact fee money because seven townships in PA got their knickers in a twist, insisting their own layman zoning regulations were better than a set of statewide, uniform regulations designed by geologists and experts. So the seven petulant towns sued to toss out large portions of the Act 13 law, and it now looks like the impact fee will be tossed out too….
Read More “Happy Story Ends Badly Because of 7 PA Towns”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!
February 25, 2014February 25, 2014

It’s been a loooong road in Maryland, evaluating whether or not they should, and if so how, to move forward with hydraulic fracturing of shale in two counties in the state. Failed Gov. Martin O’Malley appointed a commission nearly three years ago to study it. A couple of studies have been created with two more still to go–due by August 1st of this year. The two remaining studies are nebulous “heath effects” (sound familiar?) and economic impacts from drilling. MDN has always joked that Maryland was the only state more dysfunctional than New York when it comes to shale drilling. We were wrong–New York is at the bottom of the heap. We think Maryland could actually beat us to the drill bit. Maybe.

However, we noticed an op-ed written by three members of the Maryland Safe-Drilling Advisory Commission, all three anti-drilling, that argues Maryland should be *more* like New York and delay. They say, in essence, “Ain’t no way those two studies can done in time.” So the answer? Delay. Hey, the delay strategy has worked in spades for NY–why not try it in MD? Here’s the op-ed (and what you get when you appoint anti-drillers to a drilling commission)…
Read More “3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt
February 24, 2014February 24, 2014

The Pennsylvania Supreme Court continues their lunacy. On Friday they obstinately said they would not revisit their decision on the Act 13 Marcellus drilling law passed in early 2012 (see Ongoing Fallout from PA Supreme Court’s Wrong Act 13 Decision). PA Gov. Tom Corbett asked them to reconsider but the haughty response is a big “no way.” And so the very real possibility that the Supreme Court has just shut off the spigot to $200 million+ per year in impact fees. The Supremes vacated large sections of the Act 13 law that involve the collection and distribution of the Act 13 impact fee, a fee that has benefited countless communities around the state–particularly those where drilling’s impact is felt the most (hence the name). Now? Screw you seems to be the attitude of the justices.

And so we hope the seven “brave” townships that sued and kept suing are happy that they’ve just hosed the entire state with their actions–spoiling it for everyone. Congratulations…
Read More “PA Supreme Court Won’t Reconsider Act 13, Impact Fee Now in Doubt”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees
February 24, 2014February 24, 2014

PA’s Secretary of the Dept. of Environmental Protection, Chris Abruzzo, told lawmakers last week that he plans to hire “several dozen” new staffers in the oil and gas regulation area of the DEP by using new money from a bump up in well permitting fees. Abruzzo said the current 83 inspectors in the field are enough to get the job done, but what they do need is extra help back in the office–support staff.

MDN told you last September that well permit fees are set to go up 56%–from $3,200 per horizontal well to $5,000 (see Coming Soon: PA Drillers to Pay 56% More for Marcellus Permits). The new fee was approved by the DEP’s Environmental Quality Board but needs several more approvals before going into effect (expected soon). Once it does, the help wanted ads will begin to run…
Read More “New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill Dies in Committee, Yet Again
February 21, 2014February 21, 2014

As MDN alerted you, the West Virginia House of Delegates took up HB 4558, a forced pooling/unitization bill for the third or fourth year running (see WV Legislature Makes Another Run at Forced Pooling/Unitization). Yesterday we alerted you that it appeared the bill may be in trouble (see WV Forced Pooling Bill Already in Trouble, Passage Doubtful).

Today we’re happy to report the bill is dead for another year…
Read More “WV Forced Pooling Bill Dies in Committee, Yet Again”
Accidents | Chevron | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

DEP Sec. Abruzzo Praised for Quick Response to Chevron Well Fire
February 21, 2014February 21, 2014

Pennsylvania Secretary of the Dept. of Environmental Protection, Chris Abruzzo, is getting high marks for the DEP’s handling of the recent Chevron well fire in Greene County, PA–by both Republicans and Democrats. You may recall that former DEP Sec. John Hanger, running for the Democrat nomination for governor, called Abruzzo’s appointment by Gov. Corbett “bizarre and irresponsible” (see Former PA DEP Sec. Hanger Blasts Interim Replacement for Krancer). MDN editor Jim Willis had the pleasure of interviewing Sec. Abruzzo last September at the Shale Insight conference (see Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo). Our impression then, as now, was that he is a sharp guy and a good leader. Although it took a sad tragedy, we were proven right–and Hanger was proven wrong. Hey, don’t forget to “pass a joint for John” to help him with his failing campaign for governor, k?

Meanwhile, here’s the story of politicians from both parties heaping praise on Abruzzo for a job well done:
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Hydraulic Fracturing | Industrywide Issues | Regulation

EPA Issues Final “Guidance” Defining Diesel Fuel re Frack Fluid
February 21, 2014February 21, 2014

Ten days ago the federal Environmental Protection Agency (EPA) released a “guidance” to define what is and is not diesel fuel for the purposes of deciding (on a case by case basis) whether or not a driller can use that substance in their fracking fluid. In 2005 Congress passed a law that says diesel fuel can only be used as a component in fracking fluid if specifically approved, on a case by case basis. Very few (if any) drillers use diesel fuel in their fracking fluid. These days, the race is on to see how green fracking fluid can be made (see Fracking Fluids/Technology Getting Greener Each Year). However, the EPA feels duty-bound (we’d call it zealous) to ensure everyone knows exactly what is, and is not, diesel fuel for the purposes of complying with the law. The guidance just released establishes those boundaries.

Below is the EPA announcement making what was previously a draft guidance a final guidance, along with a copy of the guidance itself…
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Hydraulic Fracturing | Industrywide Issues | Regulation

EPA OIG Begins Project to “Evaluate” Water Threats from Fracking
February 21, 2014February 21, 2014

MDN has warned you for years that the federal Environmental Protection Agency (EPA) has an earnest desire to take over (illegally, in our opinion) the role of regulating oil and gas drilling in this country. Regulation of oil and gas falls, Constitutionally, to the individual states–not the federal government. So meddling bureaucrats, like the EPA’s Office of Inspector General (OIG), have to use creative excuses to begin the process of a federal takeover–and they only have a few years left in Obama’s term to do it (we hope). What better excuse to use than fracking may, might, theoretically could, possibly, concerningly, disturbingly, maybe…threaten water supplies. And so of course the OIG needs to hurry up and take a look at that–before time runs out! It’s what comes after “taking a look” that concerns us.

Below is a memo from the Acting Administrator for Water saying she’s about to convene a project that will “determine and evaluate what regulatory authority is available to the EPA and states, identify potential threats to water resources from hydraulic fracturing, and evaluate the EPA’s and states’ responses to them.” Translation: We’re comin’ for ya states–and we’re really comin’ for you drillers. Hey OIG–your bosses in the EPA are already in the midst of a multi-year “study” of fracking with a final report due soon (see Big News: EPA Fracking Study Delayed 2 Years – Now Due 2016). Why do you need to meddle too? Here’s the OIG’s opening salvo in the fracking wars:
Read More “EPA OIG Begins Project to “Evaluate” Water Threats from Fracking”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill Already in Trouble, Passage Doubtful
February 20, 2014February 20, 2014

Yesterday MDN told you about the new initiative in the West Virginia legislature to revive (yet again) a forced pooling bill (see WV Legislature Makes Another Run at Forced Pooling/Unitization). A few more details on that initiative have (as we suspected) appeared in WV media outlets. Not only was House Bill (or HB) 4558 introduced, but a companion bill Senate Bill (SB) 578 was also introduced. Already one of the senators sponsoring the Senate bill has asked his name to be removed and is backing away from it, saying the measure “will not pass.”

Even Corky Demarco, executive director of the West Virginia Oil and Natural Gas Association, says he’s “not sure” of the outcome for the legislation. All of which means it sure looks to us like it’s (once again, thankfully) DOA for this session. However, we’ll continue to keep an eye on it. Here’s the latest…
Read More “WV Forced Pooling Bill Already in Trouble, Passage Doubtful”
Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition
February 20, 2014February 20, 2014

MDN told you in stories both yesterday and today about WV House Bill (HB) 4558 that would allow forced pooling in the state–a bill that seems headed for defeat. However, there is a second House Bill actively under consideration related to the Marcellus/Utica drilling industry in the state. HB 4411 would establish in law that WV municipal landfills can legally accept over the current legal monthly maximum limit of drill cuttings for disposal (full copy of the bill is embedded below). Last year the WV DEP issued a directive that allows landfills to accept drill cuttings over the maximum 10,000 tons, something that some landfills have done since that time (in some cases landfills are accepting up to 40 tons per month). Apparently HB 4411 will codify the DEP directive into law, meaning future administrations can’t arbitrarily decide to rescind the more generous directive in place now.

A House hearing was held yesterday on HB 4411. Of the 20 speakers who addressed the House panel, 19 of them spoke against the law. The sole supporter was Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia. Here’s more of the story on disposing of drill cuttings (leftover rock and dirt) in municipal landfills…
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Hydraulic Fracturing | Industrywide Issues | Regulation | Research

Another Day, Another “Study” Saying Marcellus Kills Nature
February 20, 2014February 20, 2014

We sometimes wonder: Do some humans suffer from species guilt? Why do some people seem to believe that the human animal–the crowning achievement of all of God’s (or evolution, depending on your view of origins) animals–is actually an infestation on Mother Earth? There is a direct correlation between man’s development and use of energy, and man’s advancement. We live longer, are healthier, and enjoy more “stuff” than ever–largely because of energy: electricity, oil, natural gas and coal. Everything from your phone to your computer to the clothes you wear and the shoes on your feet, even what you eat–all of it is derived from and delivered by abundant energy sources. And yet, some humans want to turn the clock back–they want less energy. It’s like they have a death wish for the human species, or perhaps they are self-loathing. It’s simply irrational and unfathomable.

Those are the thoughts we had after reading about the latest release of a “study” that takes a look at how drilling in the biggest and best shale play–the Marcellus–maybe, might, possibly, could, theoretically lead to the destruction of wildlife habitat and freshwater ecosystems. But why stop there? Let’s throw in wind power too! Wind power also screws up wildlife habitats. And so this latest “research” study, titled Shale Gas, Wind and Water: Assessing the Potential Cumulative Impacts of Energy Development on Ecosystem Services within the Marcellus Play (copy embedded below, authored by the anti-drilling Nature Conservancy and published in a “peer-reviewed” journal), seeks not to eliminate Marcellus drilling (because that train has already left the station), but instead encourages Soviet-style central planning by government bureaucrats to minimize the effects of all this willy nilly drilling that’s goin’ on out they’a…
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