Regulation

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    NY Attorney General Actively Works Against 70K NY Landowners

    chained dogAs 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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    Happy Story Ends Badly Because of 7 PA Towns

    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”

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    3 Anti-Drilling MD Commissioners Want Fracking Delayed…Surprise!

    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!”

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

    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”

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    New Staffers on Way at PA DEP O&G Courtesy Higher Permit Fees

    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”

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    WV Forced Pooling Bill Dies in Committee, Yet Again

    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…
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    DEP Sec. Abruzzo Praised for Quick Response to Chevron Well Fire

    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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    EPA Issues Final “Guidance” Defining Diesel Fuel re Frack Fluid

    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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    EPA OIG Begins Project to “Evaluate” Water Threats from Fracking

    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”

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    WV Forced Pooling Bill Already in Trouble, Passage Doubtful

    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”

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    WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition

    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…
    Read More “WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition”

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    Another Day, Another “Study” Saying Marcellus Kills Nature

    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…
    Read More “Another Day, Another “Study” Saying Marcellus Kills Nature”

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    The Twisted Logic of an Anti-Driller: Blame Natgas for Everything

    If you try to enter the mind of a devoted anti-driller to understand their viewpoint and how they think, you risk going insane. We caution against it.

    Here’s an example of how “logic” works for anti-drillers. There’s a big chemical spill that affects the drinking water for 300,000 West Virginians–caused by the coal mining industry. You no doubt remember the headlines from a month or so ago. Since the coal industry caused the problem, we need new legislation that targets the shale drilling industry. Wait, what??? Yeah, that’s how logic works for an anti-driller…
    Read More “The Twisted Logic of an Anti-Driller: Blame Natgas for Everything”

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    Halliburton Fined $1.8M for Storing/Treating HCl at W PA Facility

    got caught red handedIn one of the biggest (perhaps the biggest) fines levied by the Pennsylvania Dept. of Environmental Protection (DEP), Halliburton has been fined $1.8 million for storing and treating hydrochloric acid (HCl) at a facility in Homer City, PA (about 50 miles from Pittsburgh). The HCl shipped and treated at the Homer City site happened over a 13-year period of time from 1999-2011, meaning most of it came from conventional natural gas well sites, although some it likely came from Marcellus Shale sites too (the conventional/unconventional split is not identified in the DEP paperwork). Marcellus drilling in PA didn’t ramp up until around 2006-2007. The DEP says Halliburton had claimed exemption from the state’s Solid Waste Management Act of 1980 for their Homer City facility, saying they were shipping and storing very small amounts of HCl at the facility when in fact that was not the case. Based on their false claim, Halliburton was given a pass on inspections, paperwork filing, signage, and the requirement to use certified hazardous waste haulers on more than 250 truck trips in and out of the facility–hauling HCl. Halliburton was in the wrong, they now acknowledge it (having been caught), and they’ve been levied a steep fine.

    Both the DEP and Halliburton stress that there “is no evidence that Halliburton’s handling of the hazardous waste caused any actual harm to the public or the environment.” However, Halliburton violated both the spirit and the letter of the law and have now been caught. Shame on them. Below is the announcement from the DEP, a copy of the consent order signed by Halliburton admitting guilt, and an article providing important details about this story not found elsewhere…
    Read More “Halliburton Fined $1.8M for Storing/Treating HCl at W PA Facility”

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    WV Legislature Makes Another Run at Forced Pooling/Unitization

    Breaking news: The West Virginia Legislature is once again taking up the issue of forced pooling–or as they are calling it, “unitization”. The forced pooling bill was introduced once again, as it has been for several years running, just a few days ago. Each year the WV legislature meets for a 60-day session and that’s it. So work has to get done quickly. An alert MDN reader tipped us that later today the House of Delegates Energy Committee will consider H.B. 4558 (full copy of the bill embedded below) at a 3 pm session today. The committee must vote to report the bill out of committee before a vote by the entire House can be taken. Will that happen? Not sure.

    According to the West Virginia Natural Gas Blog (written by law firm Lewis Glasser Casey & Rollins), both of WV’s natural gas associations are in favor of the bill. MDN has not had time to read/review the bill and therefore won’t (at this time) render an opinion. But our long-standing view remains unchanged–we take a dim view of forced pooling period. Unitization–the right to re-sell already-leased land, or to include small bits of land where the owner cannot be tracked down after a good-faith effort–is one thing. Coming in and saying 51% of your neighbors have signed, we’ll take yours too if you don’t–that’s a completely different matter and for us, should not be done. We’re sure there will be more press on today’s hearing, which we’ll bring you when we see it…
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    US Sec of Energy Moniz Gives Cuomo Swift Kick over Fracking Delay

    U.S. Secretary of Energy, Ernest Moniz, gave NY Gov. Andrew “Can’t-Make-a-Decision” Cuomo a metaphorical kick in the rear yesterday by saying Cuomo ought to consider the economic prosperity fracking has brought to Pennsylvania. He also said fracking can and is being done safely–that it’s “manageable.” In other words, wise up Andy.

    Three cheers for Ernie! Here’s what Moniz told Politico’s Capital New York publication:
    Read More “US Sec of Energy Moniz Gives Cuomo Swift Kick over Fracking Delay”