Regulation

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    ODNR Chief Says Utica Shale is “Real Deal” & Feds Should Stay Out

    James Zehringer, director of the Ohio Department of Natural Resources (ODNR) recently said that the Utica Shale “is the real deal.” By which he meant the Utica is here to stay and a serious shale play, getting a lot of attention (and development). It was only 15 months ago that there was plenty of angst about the Utica because it wasn’t as “oily” as some had hoped. In fact, at the time, Reuters pronounced the Utica a bust (see Reuters Says Utica Shale Boom is Really a Secret Bust). My oh my how wrong they were!

    Just in case there’s any lingering doubt (for people like Reuters reporters), Zehringer set out to dispel the naysayers. In his recent remarks, Zehringer also said the feds should mind their own business and leave oil and gas regulation to the states, where it belongs…
    Read More “ODNR Chief Says Utica Shale is “Real Deal” & Feds Should Stay Out”

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    PA’s Impact Fee in Jeopardy from Supreme Court’s Act 13 Decision

    The decision of the PA Supreme Court to invalidate large portions of the 2012 Act 13 Marcellus drilling law, particularly those portions dealing with zoning, have left much of the law–perhaps the entire law–in doubt. The court’s decision was like an explosion, and we’re just now seeing the mushroom cloud but haven’t felt the fallout just yet. Did the Supremes just destroy shale drilling in PA? Is their decision really no big deal? It all depends on whom you ask.

    One thing that appears to be in jeopardy is the impact fee/tax that’s already raised over $400 million in the last two years. A lot of that fee gets distributed to the places impacted by drilling, hence its name. It’s a sensible fee notwithstanding our objection that 40% of it goes to politicians to spend in non-drilling parts of the state. However, high court’s decision throws the future of the impact fee into doubt. Last week Gov. Tom Corbett’s administration asked the Supreme Court to reconsider its decision and further clarify some issues in hopes the impact fee (among other things) can be retained…
    Read More “PA’s Impact Fee in Jeopardy from Supreme Court’s Act 13 Decision”

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    AP Drive-By Article Says Drilling Pollutes Water Wells

    A classic example of mainstream media’s drive-by murder of the truth has happened yet again–at the hands of the Associated Press (hitman: Kevin Begos). The introduction to the most recent hit piece (read it below) is that the AP has done extensive “research” (which is, of course, laughable) into all of these numerous cases of potential water contamination by oil and gas drilling and by golly some of those cases are true–oil and gas drilling polluted some people’s well water. Never mind what kind of pollution, the water was polluted and that’s all you need to know.

    Near the end of the article the mountain of evidence is offered–and what do we find? A statistically infinitesimally small number of complaints about well water contamination, very few of which were proven to be true. So the opening paragraphs are a clever deception, but most people don’t bother to read down to the point where the truth is revealed–and some may not even grasp the truth when they do read it. This one story, written by a reporter with an anti-drilling agenda, is reprinted ad nauseum in hundreds of local newspapers across the country that never bother to question its veracity or attempt to verify the facts. Welcome to Propaganda 101…
    Read More “AP Drive-By Article Says Drilling Pollutes Water Wells”

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    Third Time the Charm? Youngstown Anti-Drillers Try Again for Ban

    The crazies are back in Youngstown, OH–or more properly, they never left. Anti-drillers couldn’t get the good citizens of Youngstown to vote in favor of a frack ban twice in a row, but that doesn’t stop zealots like members of FrackFree Mahoning Valley from trying again. They’re back at it, circulating a petition that–for a third time–asks residents to put the same tired old “ban fracking” measure on the ballot for a vote. After twice being voted down in large numbers. The nutters call it a “Bill of Rights” hoping to fool people. Call the measure what you want–its effect would be to shut down Youngstown from the drilling industry and deny residents the multitude of benefits they now get from Utica drilling (jobs and business tax revenue).

    But hey, it’s (still) America where fruitcakes have the freedom to do what they want–including pestering their neighbors to sign a petition circulated twice before. Our advice: If one of the FrackFree Mahoning fruitcakes comes knocking on your door–hand them the fruitcake you got for Christmas and still haven’t eaten, and send them packing…
    Read More “Third Time the Charm? Youngstown Anti-Drillers Try Again for Ban”

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    MDN’s Top 10 Most Important Stories of 2013 – Our View

    Top 10Yes it’s trite and certainly overdone, but hey, it’s the last day of 2013 and a slow news day. So MDN editor Jim Willis thought he would put together a list of what he considered to be the top 10 Marcellus and Utica Shale stories from 2013. It’s a look into what we believe, based on your input and feedback, to be the most relevant and important stories from this year. Enjoy!…
    Read More “MDN’s Top 10 Most Important Stories of 2013 – Our View”

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    NY’s Ongoing War Against Natural Gas – An Update

    Lenape Resources is one of MDN’s favorite NY-based energy companies. We’ve heard their CEO John Holko speak at events touting the benefits of shale drilling in NY. John doesn’t just say good things about drilling, he puts his money (and his time) into the cause as well. In 2012 Lenape sued the Town of Avon, NY (Livingston County) over their hastily passed fracking ban, a ban that not only bans horizontal or shale fracking (which isn’t even allowed in NY) but also ended up banning vertical fracking in the town, something that’s been going on in NY for more than 40 years. Lenape lost the case in lower court and appealed it (see Lenape Appeals Ruling, Seeks to Overturn Frack Ban in Avon, NY).

    In its heyday, before the NY frack moratorium that’s now 5 1/2 years old, Lenape employed 100 people. Today? They have 5 people. Sound familiar (cough *Norse Energy* cough)? NY is driving energy companies out of business with ongoing hostility by municipalities like Avon and with delays by the state. NY is about as business unfriendly as you get. Here’s an AP update on Lenape and the ongoing negative impact of the frack moratorium in NY:
    Read More “NY’s Ongoing War Against Natural Gas – An Update”

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    Does PA Supreme Court Act 13 Decision Affect NY Cases?

    Apparently there’s been some concern, confusion and downright misleading information circulating since the recent PA Supreme Court decision that grants municipalities in PA the right to continue zoning where shale drilling can and cannot take place (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). Some have tried to draw parallels between the “Dryden” and “Middlefield” cases now before the NY Court of Appeals (NY’s highest court) and the decision by the PA Supreme Court, because both involve issues of home rule or the right of localities to impose zoning on oil and gas drilling.

    Even though both the PA Act 13 and the NY Dryden/Middlefield cases are both home rule cases, they are nothing alike and the PA case in no way impacts or affects the NY case. Perhaps the biggest difference between the PA and NY cases is this: In PA even though municipalities can now legally zone for oil and gas drilling, they must still allow oil and gas drilling in at least one zone. In NY, towns have completely banned drilling throughout the entire (rural) township. Huge difference. And there are other differences. Because of the ongoing confusion, the pro-drilling attorney for the Middlefield case, Scott Kurkoski, issued the following statement on the JLCNY website to clear the air and set the record straight…
    Read More “Does PA Supreme Court Act 13 Decision Affect NY Cases?”

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    NY’s Albany Anti-Frack Protest – Made Possible by Natural Gas

    Not only are the crazies marching in Maryland (see today’s story Maryland Anti-Fracking “Madness” Continues – Crazies on the March), they’re also about to descend on Albany, NY. MDN friend and occasional guest blogger Vic Furman, a retired IBMer and one of the leaders of the Joint Landowners Coalition of New York, provided the article below pointing out the hypocrisy of those who oppose shale drilling. Vic says that in nine days when anti-drilling protesters arrive in Albany (many from out of state), they will do so because natural gas and oil from shale drilling made it possible for them to be there.

    Take time to read Vic’s post and consider the salient points he makes:
    Read More “NY’s Albany Anti-Frack Protest – Made Possible by Natural Gas”

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    Maryland Anti-Fracking “Madness” Continues – Crazies on the March

    The anti-drilling crazies in Maryland are on the march, literally! A coalition of extremist so-called “environmental” groups plan to march on Annapolis on the opening day of the General Assembly session to urge legislators to ban shale drilling. No, they are not demanding a moratorium–they are demanding an outright and permanent ban on fracking. How do you reason with unreasonable people? You don’t. You defeat them. And that’s what pro-drilling and clear-thinking people must do in Maryland. There is no sane debate with a crazy people.

    Here’s a Maryland “madness” update:
    Read More “Maryland Anti-Fracking “Madness” Continues – Crazies on the March”

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    PA Town in Poconos Symbolically Votes to Condemn Fracking

    The day before the PA Supreme Court ruled that towns must allow fracking but can impose their own zoning rules about where it is and isn’t used, the Stroudsburg Borough Council voted, unanimously, to pass a resolution (or depending on your news source, ordinance) that “condemns” fracking. Stroudsburg is located about five miles from the Delaware Water Gap in Monroe County, PA. It’s debatable whether or not there’s anything to frack under Stoudsburg. Because the borough is in the Delaware River Basin the DRBC doesn’t yet allow drilling there anyway–so the vote was purely symbolic.

    The ring leader seems to be outgoing councilwoman Kathleen Lockwood who has proven her ignorance on the subject of fracking with her public comments on the matter (see below). Since this was a symbolic vote, we nominate Ms. Lockwood to symbolically remove herself from using all natural gas–she should quit heating her home with it, quit using it to cook her food, and quit using electricity in her home produced by using natural gas–you know, to show the rest of us her resolve in opposing fracking. If fracking is so bad and evil, surely she would want to quit using the results of that fracking–natural gas–right? What’s that? Not so fast? Let’s not be hasty now! Yeah, that’s what we thought…
    Read More “PA Town in Poconos Symbolically Votes to Condemn Fracking”

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    Fitch Ratings Says PA Court Decision Translates to Less Production

    Elections–and court cases–have consequences. You tax something more, you get less of it. You regulate something more, you get less of it. When there’s less of something, prices for it go up. Fitch Ratings–one of the largest and most prestigious rating agencies in the world–has just weighed in on the ruling by the PA Supreme Court that throws out portions of the Act 13 drilling law (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). According to Fitch, more local regulation of PA’s oil and gas drilling will result in less production. You don’t normally think of Fitch as being in the oil and gas production prediction game–that’s more the purview of the Energy Information Administration (EIA). However, Fitch says the recent PA ruling will almost certainly mean less production coming out of PA–a sobering observation.

    Fitch’s opinion counts because investors make decisions based on it. Less gas, higher prices. It also means less tax money will flow to municipalities. Pretty simple economics and Fitch is just stating the obvious. Here’s what Fitch said earlier this week about the PA court decision…
    Read More “Fitch Ratings Says PA Court Decision Translates to Less Production”

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    Rochester Poll: Cuomo Wrong to Delay, Begin Fracking Now

    Unscientific opinion survey? To be sure. But the results from a recent Rochester (NY) Business Journal poll that asks the question of whether or not Gov. Andrew Cuomo should continue to delay a decision on fracking is enlightening. Some 540 RBJ readers participated in the web-based snap poll that asked two questions about fracking. It will be no surprise to you that the vast majority of RBJ readers believe Cuomo should make a decision now–and that the decision should be to allow fracking to commence.

    Most people who read the RBJ are small business people–entrepreneurs and managers and people who make things happen. In other words, they are producers–the opposite of the government-dependent leeches we tend to turn out in NY in large numbers. Producers are clear-headed–they know how to evaluate information and come to a logical conclusion. And the conclusion reached in “liberal” Rochester is this: fracking is safe, it’s time to start. Get off the pot Cuomo! Here’s the details from the RBJ snap poll:
    Read More “Rochester Poll: Cuomo Wrong to Delay, Begin Fracking Now”

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    Chu to the Rescue: Former DOE Sec Profits from Regs He Made

    Let’s see, ascend to a powerful, important position in Washington, DC–one where you have your hands on the levers of power. Pull those levers to put in place some of the most onerous regulations imaginable that will make companies pay out the nose to (unbelievably) “capture carbon” so the carbon doesn’t escape, like a fugitive criminal, into the atmosphere. Then create low interest loans and outright government grants to companies to create the technology that companies will need to meet the strict new standards. Oh, and after you help create those new rules and the programs to fund the technology, leave that position and go to work for a tech company that happens to provide a solution to meet the new regulations you just created. All very cozy, don’t you think? That’s what former Sec. of the Dept. of Energy Steven Chu has done.

    Canadian carbon capture company Inventys Thermal Technologies announced last week that Chu will join their board for undisclosed boatloads of money and stock options to “advise them” in their quest to dominate the carbon capture market, playing off fears of global warming and strict government regulations that will require companies to do something to (unbelievably) capture carbon. The only word we can think of that’s appropriate is: “incestuous”…
    Read More “Chu to the Rescue: Former DOE Sec Profits from Regs He Made”

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    Maryland Update: Marcellus Drilling a Distant & Ellusive Dream

    A periodic check on the state of shale drilling in Maryland shows that like New York, Maryland has all but killed drilling in their state with a long, drawn-out, so-called “review” of fracking. The price of gas is so low, and the prospects and ease of drilling in neighboring states like PA, WV and OH is so convenient, that most energy companies have simply said “bye bye” to the two counties in western MD that contain recoverable Marcellus Shale gas.

    Will there ever be drilling in MD? Oh perhaps one day, if Maryland politicians (mostly Democrats) ever get off the metaphorical pot and get regulations adopted to allow it. However, at this point the prospects are pretty grim. Energy companies are letting years-old leases lapse, writing them off as losses and not re-signing, which is bad news for Maryland landowners in Garrett and Allegany counties. All four companies that had previously filed for permits to drill shale wells have withdrawn those permits. In other words, Marcellus drilling in MD is, at this point, dead as a door nail. Here’s an update on the MD situation from the “helpful” AP:
    Read More “Maryland Update: Marcellus Drilling a Distant & Ellusive Dream”

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    EQT Gathering Gets USACE Green Light for Armstrong County Pipeline

    EQT Gathering wants to install an 8.1 mile gathering pipeline in Armstrong County, PA. Some of the pipeline crosses federal lands and requires the U.S. Army Corps of Engineers (USACE) to conduct an environmental assessment and judge whether or not the project would significantly impact “natural and cultural resources.” The Corps has done their investigation and has issued an FONSI–a Finding of No Significant Impact. Which means sometime after a 30-day public comment period (during which shrill anti-drillers will no doubt wail and moan), EQT will be able to move forward with the project. A happy ending!

    The statement issued by the Corps:
    Read More “EQT Gathering Gets USACE Green Light for Armstrong County Pipeline”

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    Middlesex Bans Fracking – A Tad Ironic, Wouldn’t You Say?

    Does anyone else see the irony that a place with the word “sex” as part of its name has banned something called “fracking”? (Yes that observation is juvenile, but sometimes you need a bit of juvenile fun.) The story is this: a bunch of hepped up lefties, egged on by the odious and misnamed Food & Water Watch, got enough people to the polls to ban fracking in a place where there isn’t any interest in fracking–Middlesex County, NJ. The vote is an empty symbol to be sure, but important all the same because the people of Middlesex County are sending a very loud message to the shale drilling industry: drop dead.

    Perhaps the good people of Middlesex would like to quit using natural gas to heat their homes, heat their water and cook with–you know, just to be consistent with their “strong beliefs” on fracking–because the majority of their natural gas now comes from fracking. What’s that? Not on your life? Take your filthy hand away from that gas shut-off valve! Yeah, hypocrites often operate that way…
    Read More “Middlesex Bans Fracking – A Tad Ironic, Wouldn’t You Say?”