Regulation

Air Quality | Chesapeake Energy | Energy Companies | Exxon Mobil | Industrywide Issues | Regulation | Ultra Petroleum

Rogue Obama EPA Goes on Methane Witch Hunt
April 2, 2014April 2, 2014

The recent Climate Action Plan to cut methane emissions emitted by the White House last week contains this ominous bullet point: “EPA will assess several potentially significant sources of methane and other emissions from the oil and gas sector. EPA will solicit input from independent experts through a series of technical white papers, and in the fall of 2014, EPA will determine how best to pursue further methane reductions from these sources.”(1) The good news is that the overbearing, out-of-control actions by the Obama EPA will only apply to drilling on federal lands. The bad news is that they will try to bully individual states to adopt the same new onerous regulations, thereby making federal regulations de facto in many locations.

Will the EPA methane witch hunt affect the Marcellus and Utica region? Too early to tell whether PA, OH and WV will cave to Obama EPA pressure. Here’s an analysis of how onerous new regulations may affect several drillers with major operations in the Marcellus…
Read More “Rogue Obama EPA Goes on Methane Witch Hunt”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Pennsylvania | Regulation

New Hearing Dates for Hilcorp’s Forced Pooling Request in PA
April 1, 2014April 1, 2014

Last October MDN told you about Hilcorp’s request to force some Pennsylvania landowners in Lawrence County, PA to allow Hilcorp to drill under (not on) their property in the Utica Shale layer (see Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner). After much tooing and froing, the PA courts told the Dept. of Environmental Protection (DEP) that the DEP would need to make the decision (see Ironic: PA Enviro Court Forcing DEP to Rule on Forced Pooling). The DEP set a public hearing for March 25 & 26 in Lawrence County, and then postponed it (see Hilcorp Forced Pooling Hearing Postponed, More Landowners Added).

We finally have final final final hearing dates from the DEP–May 7 & 8. Here’s the lowdown from the DEP, in which they say the hearings will be conducted “like a trial”…
Read More “New Hearing Dates for Hilcorp’s Forced Pooling Request in PA”
Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills
April 1, 2014April 1, 2014

The Ohio River Valley Sanitation Commission (ORSANCO), an interstate commission representing eights states and the federal government, was set up in 1948 to monitor, issue warnings about and correct pollution issues in the Ohio River. In particular, ORSANCO handles spills from barges or boats using the mighty Ohio. According to Jerry Schulte, manager of source water protection and spokesman for ORSANCO, the organization is up to the task of protecting the Ohio from any accidents that may include barge shipments of frack wastewater.

Not only are they up to the task, ORSANCO believes the Coast Guard is now very close to allowing it, and ORSANCO is ready…
Read More “ORSANCO Ready to Monitor Ohio River for Barge Frack Waste Spills”
Chenango County | Energy Services | Industrywide Issues | New York | Otsego County | Pennsylvania | Pipelines | Regulation | Schoharie County | Susquehanna County | Williams

JLCNY Encourages Support of Constitution Pipeline — This Week
March 31, 2014March 31, 2014

MDN has done a fair bit of reporting on a desperately needed new natural gas pipeline due to be built from Susquehanna County, PA all the way to Schoharie County, NY. The Constitution Pipeline will be built by Williams starting later this year, if all goes according to plan (see New Marcellus Constitution Pipeline Announces “Final” Route). Last week MDN told you that both the federal EPA and Dept. of Interior have asked for more time to provide their own comments on the new pipeline (see EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline). FERC, the Federal Energy Regulatory Commission, has itself told Williams they will need to make a few adjustments to their plans (see FERC: Constitution Pipeline Should Make Changes to Lessen Impacts).

FERC will ultimately decide whether or not to allow Williams to build the pipeline. We doubt there’s much doubt about the plan–it’s almost certain to be built. FERC themselves say it’s really really needed. However, FERC must go through the motions, and one of those motions is to hold public “scoping” hearings where people (often anti-drillers) show up to gripe and moan about the plan. FERC is conducing a series of four hearings this week, starting today. The Joint Landowners Coalition of New York sent the following email (with hearing details) to request members of the JLCNY and all pro-drillers attend a meeting near them, to show support for natural gas in our region…
Read More “JLCNY Encourages Support of Constitution Pipeline — This Week”
Air Quality | Hydraulic Fracturing | Industrywide Issues | Regulation

Obama Floats Plan to Save the Planet from Methane (Yawn)
March 31, 2014March 31, 2014

The U.S. is on a mission to control methane because it’s a contributor to the mythical problem that the earth is warming too much–from man. Methane contributes to the so-called global warming problem, so the theory goes. And if we could just control it (i.e. use the heavy hand of government with it’s gun to your head), why, we’d stave off ecological Armageddon! At least until the next generation of deadbeats comes along. One problem–most methane released into the atmosphere comes from termites and cows–but The Great and Powerful Obama(oz) has a solution even for persnickety pests and bovines. We’ll just tax ’em.

Last week the “brain trust” at The White House released it’s government-has-all-the-answers-and-kiss-more-of-your-freedoms-goodbye solution for tackling methane emanations (see a copy of the new White House report on methane emissions embedded below). As you might guess, part of the “solution” is to have the EPA continue its rogue, out-of-control attempts at more regulation of the oil and gas industry–the very industry that is set up to capture as much methane as it can!…
Read More “Obama Floats Plan to Save the Planet from Methane (Yawn)”
Energy Companies | Industrywide Issues | New York | Pipelines | Regulation | Seneca Resources | Steuben County

17-Mile Gas Pipeline in Steuben County, NY Makes Progress
March 28, 2014March 28, 2014

Empire Pipeline, a subsidiary of National Fuel Gas Company (which also owns driller Seneca Resources) is asking the Federal Energy Regulatory Commission (FERC) for approval on a new 17-mile pipeline in Steuben County, NY. The project is called the Tuscorara Lateral Project and will cost a projected $43 million. The pipeline will connect a gas storage field and compressor station in Tuscarora, NY (also owned by National Fuel Gas) with the existing Empire Pipeline network–a network that stretches from Buffalo to Syracuse and down to Corning. This “little” piece of pipeline will open up much needed extra volumes of natural gas for Upstate New Yorkers.

Empire/National Fuel is now negotiating with landowners to run the pipe under their property. They hope to begin building later this year and have the pipeline in service in November 2015. Below is a story about the project, the reason for it, the jobs it will create, and finally a copy of a presentation given last year at a special open house with full details…
Read More “17-Mile Gas Pipeline in Steuben County, NY Makes Progress”
Energy Services | Industrywide Issues | New York | Pennsylvania | Pipelines | Regulation | Statewide NY | Susquehanna County | Williams

EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline
March 27, 2014March 27, 2014

NGI’s Shale Daily is reporting both the federal Environmental Protection Agency (EPA) and the Dept. of Interior (DOI) have filed requests with the Federal Energy Regulatory Commission (FERC) to extend the comment period on the proposed 124-mile Constitution Pipeline. The Constitution will run from the prolific gas fields of Susquehanna County, PA across the border and up into Schoharie County, NY where it will interconnect with two major interstate pipelines–carrying Marcellus Shale natural gas produced by Cabot Oil & Gas and other drillers (see New Marcellus Constitution Pipeline Announces “Final” Route). Along the way a local utility company will tap into the Constitution to deliver natural gas to rural locations (see Leatherstocking to Tap Constitution Pipeline for Local Deliveries).

However, the Constitution will need to make a few changes, according to FERC (see FERC: Constitution Pipeline Should Make Changes to Lessen Impacts). But nothing too major. That is, unless the EPA and DOI jump in with new demands. Their delay is unwelcome and potentially troubling–although we’re not ready to hit the panic button just yet. Here’s what Shale Daily says about the request from EPA & DOI:
Read More “EPA/DOI Ask for More Time to Review PA-NY Constitution Pipeline”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Regulation | Statewide NY

NY Update: Norse/JLCNY Lawsuit Hearing Date Set for April 25
March 26, 2014March 26, 2014

Sadly, politics in New York State have become so corrupt that even the State Attorney General, Eric Schneiderman, actively works against the interests of the people he’s sworn to protect–the citizens of New York State. Late last year Norse Energy sued Gov. Andrew Cuomo, DEC Commissioner Joe Martens and State Health Commissioner Nirav Shah over their collusion to stop shale drilling in the state (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs). Later, the 70,000-member Joint Landowners Coalition of New York joined that lawsuit (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah).

How has AG Schneiderman reacted? By filing to dismiss the lawsuits and delay (see NY Attorney General Files to Dismiss Norse Lawsuit, More Delays). It’s utterly shameful. The lawsuit was scheduled for a hearing first in January, then moved to February, then March, and now April. It appears Norse and the JLCNY, whose cases are now tied together, will finally get a hearing at the end of April–on the 25th…
Read More “NY Update: Norse/JLCNY Lawsuit Hearing Date Set for April 25”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | Pipelines | Regulation | Williams

Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY
March 26, 2014March 26, 2014

On Monday MDN brought you the news that the Kentucky House had voted to strip the right to use eminent domain from natural gas liquids pipelines (see Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline). An alert MDN reader predicted the measure wouldn’t get signed into law because the KY Senate president said with only 10 days left in this session, it’s not likely to come up for a vote in the Senate (see Bluegrass Pipeline bill passes House).

Looks like it won’t matter what the KY legislature does. Last December a lawsuit was filed by a group calling itself KURE (Kentuckians United to Restrain Eminent Domain), to prevent the Bluegrass Pipeline from using eminent domain in the Bluegrass state (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court). Yesterday Franklin Circuit Judge Phillip J. Shepherd ruled in KURE’s favor and said the Bluegrass cannot use eminent domain to force landowners to allow the pipeline to be buried under their property…
Read More “Judge Rules Bluegrass Pipeline Cannot Use Eminent Domain in KY”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Litigation | Pennsylvania | Regulation

Hilcorp Forced Pooling Hearing Postponed, More Landowners Added
March 24, 2014March 24, 2014

MDN previously told you about Hilcorp’s lawsuit to force some hold-out landowners in Lawrence County, PA to allow drilling under their land–a concept called forced pooling. The PA Dept. of Environmental Protection (DEP) and the PA courts treated it like a hot potato. The courts finally told the DEP that they (the DEP) would need to decide the matter. So the DEP had set aside two days this week to conduct public hearings in New Castle (see Forced Pooling Circus (ie Hearing) Coming to Lawrence County, PA).

However, the circus/hearing scheduled for this week has been postponed. No new date has been announced. The DEP and Hilcorp both wanted the delay offering the explanation that they need more time, “to provide more complete notice to potentially affected people.” Apparently some landowners haven’t yet been served notice that they will be affected–forced–to be part of a Hilcorp drilling unit, and both Hilcorp and the DEP want them to know it before the public hearing commences. Seems like the forced pooling in Lawrence issue keeps getting better and better (not)…
Read More “Hilcorp Forced Pooling Hearing Postponed, More Landowners Added”
American Water Management | Earthquakes | Energy Services | Industrywide Issues | Mahoning County | Ohio | Regulation | Trumbull County | Wastewater

OH Earthquakes May Delay Opening of New Niles Injection Well
March 24, 2014March 24, 2014

Although Niles (Trumbull County), Ohio is about 18 miles from Poland (Mahoning County), Ohio by car, it’s only about 8-9 miles “as the crow flies.” And that proximity may be a problem for a new Class II frack wastewater injection well set to open in just a few weeks in Niles. Why? Because nearby Poland is where there was a recent series of earthquakes (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?).

American Water Management Services Inc. say they are about two weeks away from opening their new injection well in Niles–or could open if they get the necessary permits. The Ohio Dept. of Natural Resources (ODNR) says it’s too early to say whether or not the new injection well will be allowed to open in the next few weeks because of the ongoing earthquake investigation…
Read More “OH Earthquakes May Delay Opening of New Niles Injection Well”
Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Litigation | NGLs | Pipelines | Regulation | Williams

Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline
March 24, 2014March 24, 2014

The Bluegrass natural gas liquids (NGL) pipeline is a $1.5 billion project that will stretch from the Utica/Marcellus all the way to Gulf Coast. It’s being built by Williams and Boardwalk Pipeline Partners and as of last October the joint venture partners held an open season and said everything is on track for a 2015 launch (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). But a lot has happened in the past six months, including Boardwalk’s stock tanking (see Serious Concerns about Boardwalk Pipeline Partners Continue). Not only that, but there’s been a lot of anti-pipeline sentiment in Kentucky–one of the states the new pipeline must cross on its way to the Gulf Coast. So much anti-pipeline sentiment that Boardwalk and Williams have threatened using eminent domain in order to get the property they need for a crossing (see Bluegrass NGL Pipeline’s Eminent Domain Challenged in KY Court).

The eminent domain issue is coming to a head in Kentucky with respect to the Bluegrass Pipeline. Last Friday the KY House voted to approve House Bill (HB) 31 which will strip NGL pipelines of their right to use eminent domain in the state. The measure now heads to the Senate. What are its chances? No one is saying, although Boardwalk and Williams have hired no less than nine lobbyists to make their case with KY lawmakers…
Read More “Kentucky House Votes to End Eminent Domain for Bluegrass Pipeline”
Anti-Drilling/Fossil Fuel | Chautauqua County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Chautauqua County Fed Pack of Lies about Fracking, Considers Ban
March 21, 2014March 21, 2014

And so it begins. MDN told you yesterday about the City of Dunkirk, NY that has bitten off the natural gas hand that feed them–by passing a fracking ban (see Dunkirk, NY City Council Bites Off the NatGas Hand that Feeds It). The dolts on Dunkirk City Council said they want the entire county–Chautauqua County–to follow suit and ban fracking countywide. County legislators attended a special session Wednesday night where they heard some truth, and a whole lotta lies, about hydraulic fracturing.

Here’s how it went…
Read More “Chautauqua County Fed Pack of Lies about Fracking, Considers Ban”
Industrywide Issues | Regulation | Statewide WV | Taxation | West Virginia

Back to the Future (Fund) – WV Gov. Tomblin Signs New Law
March 21, 2014March 21, 2014

Last year a bunch of West Virginia lawmakers went on a quick vacation to North Dakota (of all places), at a cost of $25,000 to WV taxpayers, to try and convince those lawmakers to look at and adopt a “future fund” similar to ND’s “legacy fund” (see 18 WV Lawmakers Flying to ND for a $20K Overnighter on Drill Tax). The Future Fund bill, which would set aside 3% of revenue raised from WV’s oil and gas severance tax in a rainy day fund, came up for a vote a few weeks ago. It passed, but not the way hoped for (see Fate of 3 WV Laws that Impact Marcellus/Utica Drilling). The final bill was altered so that only if certain economic conditions are met would the 3% be set aside.

However, that makes no difference when it comes to photo ops. Yesterday WV Gov. Earl Ray Tomblin signed the bill into law and the headlines today all ready that WV now has a Future Fund and the state’s politicians are almost breaking their arms patting themselves on the back–even though it’s doubtful that money will be set aside for years to come…
Read More “Back to the Future (Fund) – WV Gov. Tomblin Signs New Law”
Anti-Drilling/Fossil Fuel | Chautauqua County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Dunkirk, NY City Council Bites Off the NatGas Hand that Feeds It
March 20, 2014March 20, 2014

Talk about biting (off) the hand that feeds you. Get this one: The dunderheaded City Council members of Dunkirk, NY (near Buffalo) voted yesterday to ban fracking. Not only that, they want the entire county to follow suit! City Council members recited, almost chapter and verse, the same worn-out old lies told in Gasland, the fictitious movie from Josh Fox. After reading their comments we’re left to think the sum total of research done by the braintrust in Dunkirk into fracking was to munch popcorn and watch a movie. They apparently bought it hook, line and sinker. What dolts.

Here’s the thing. Three months ago almost to the day Andrew “can’t make a decision” Cuomo visited Dunkirk to tell them that the coal-powered electric generating plant that was about to close, and take some 40% of the local tax contributions to the City with it, had his lordship’s permission to convert to burning natural gas–fracked gas–instead (see Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas). City Council rejoiced. “Yah! We get to keep 40% of the taxes that would have disappeared overnight!” And now? “Ban that evil, nasty fracking.” The very same fracking that will bring natgas from other states to Dunkirk so they can burn it to make electricity. Maybe that electric plant should reconsider its decision and close after all. Hmmm….
Read More “Dunkirk, NY City Council Bites Off the NatGas Hand that Feeds It”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA State Treasurer Rob McCord Unveils Gas Death Plan
March 20, 2014March 20, 2014

Poor old “Pass a Joint for John” Hanger dropped out of the race to be the Democrat nominee for governor in PA. Who will be next? Apparently not State Treasurer Rob McCord. Get this, he’s just released an utterly brilliant natural gas plan–tax the whole darned thing 10%…on everything produced. According to McCord, that will raise $1.63 billion for the state in just the first year.

Of course the plan is, in reality, utterly brain dead and moronic. If such a plan were ever to see the light of day it would effectively kill all shale drilling in the state. Done. Finished. Over. And then instead of the $200 million+ PA now extracts in a reasonable impact fee–they would get nothing. How on earth do these people keep getting elected to office? Here’s more of the moronic McCord gas death plan:
Read More “PA State Treasurer Rob McCord Unveils Gas Death Plan”