Regulation

Broome County | Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY | Tioga County (NY)

Chesapeake Energy Throws in the Towel on NY Shale Drilling
August 7, 2013August 7, 2013

A good news/bad news story. The good news is that Chesapeake Energy is giving up the legal fight with landowners in New York to extend their leases beyond the original lease term. MDN has long chronicled the fight on the part of landowners to stop Chesapeake from claiming force majeure to extend leases signed for (in some cases) just a few dollars per acre–leases signed long before horizontal drilling and fracking were contemplated (see More on the NY Force Majeure Ruling Against Chesapeake). After two years of legal wrangling, Chesapeake is throwing in the towel. Landowners will now be able to sign with another company, if drilling ever comes to NY.

The bad news is, Chesapeake is throwing in the towel–as in they are giving up on NY–tired of the ongoing five-year moratorium in shale drilling. Wake up Cuomo! Your actions have caused this! You are causing direct economic harm to your residents every day the moratorium stays in place…
Read More “Chesapeake Energy Throws in the Towel on NY Shale Drilling”
Indiana County | Industrywide Issues | Pennsylvania | Regulation | Wastewater

PA Frack Wastewater Plant Closes, Loses Permit to Operate
August 7, 2013August 7, 2013

Although companies like GreenHunter Water can’t get enough fracking wastewater facilities online fast enough to meet demand from Marcellus and Utica drillers, it appears not everyone has the same level of success when it comes to operating such facilities. The PA Dept. of Environmental Protection (DEP) has pulled the operating permit for a frack wastewater treatment facility in Indiana County, PA. Seems the facility operated “sporadically” in July and August of last year before stopping operation in September. The owner, Aquatic Synthesis, ran into financial difficulties (i.e. bankruptcy).

Problem is, there’s still a million gallons of wastewater at the plant that need to be disposed of. Who will pay for that?…
Read More “PA Frack Wastewater Plant Closes, Loses Permit to Operate”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium
August 6, 2013

Well well, what do you know? There are 18 brave Democrats in Pennsylvania after all. MDN was (we think) the first and one of the only sources to tell you of the insanity of the PA Democrat Party who, at their most recent statewide meeting, voted to adopt an official plank in their party platform supporting an immediate and ongoing moratorium–essentially a ban–of all Marcellus Shale drilling in the state (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). The state and national media ignored the story, knowing how toxic such a stupid move will be for Democrats at the next election (got to protect the Dem hegemony ya know).

But, we’ve just learned that 18 brave elected Democrats from the PA House of Representatives, including House Minority leader Frank Dermody, wrote a letter on July 15 to the state committee telling them the frack moratorium vote in June is not kosher with them. To which we say, three cheers! Finally, some people with ~~balls~~ intestinal fortitude inside the PA Democrat Party…
Read More “18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium”
Hydraulic Fracturing | Industrywide Issues | Regulation

Hammer Falls: New EPA Edict on Storage Tanks Used in Drilling
August 6, 2013August 6, 2013

Day by day, a little more of the thing that once made America great–freedom and liberty–dies. Hey, no big deal. It’s all done in the name of health and safety. The latest example: The federal Environmental Protection Agency (EPA) has just issued more rules that trample individual states’ rights to regulate oil and gas drilling. It’s the EPA’s ongoing back-door method of one day fully regulating oil and gas drilling throughout the U.S.

The latest EPA rules have to do with oil and gas storage tanks and the emissions that come from them. Drillers and those operating such storage tanks have until either April 15, 2014 or April 15, 2015 (depending on when the tank went into service) to comply with new rules reducing volatile organic compound (VOC) emissions by 95%. The EPA’s latest edict:
Read More “Hammer Falls: New EPA Edict on Storage Tanks Used in Drilling”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Statewide WV | West Virginia

Marcellus Hiring Practices “Under a Microscope” by DOL
August 5, 2013August 5, 2013

Are you a driller, oilfield services or other supply chain company whose primary activity revolves around the PA or WV Marcellus Shale? If so, there’s a good chance you’re going to get audited by the U.S. Labor Department (DOL). Best to get your records (and hiring practices) in order now.

The biggest violation found by the DOL’s so-called Marcellus Shale Initiative: improperly classifying workers as independent contractors instead of salaried or hourly employees. Hiring workers as independent contractors is coming back to bite a number of companies, large and small. If the DOL finds a violation, they helpfully pass it on to the IRS, so after the DOL is done fining you, the IRS typically shows up on your doorstep for a second pound of flesh. Sweet…
Read More “Marcellus Hiring Practices “Under a Microscope” by DOL”
Hydraulic Fracturing | Industrywide Issues | Regulation

U.S. Senate Bill Would Prevent Feds from Regulating Fracking
August 5, 2013August 5, 2013

A ray of hope that the federal government might actually do the right thing and let the individual states (as provided for in the U.S. Constitution) regulate fracking in their own states? Stranger things have happened!

A new bill just introduced by two U.S. senators from shale states–John Hoeven from North Dakota (Republican) and Mary Landrieu from Louisiana (Democrat)–would prevent the federal government from interfering with states’ rights to regulate fracking and drilling within their own borders. Three cheers! However, don’t hold your breath that this bill will go anywhere with BHO sitting in The White House…
Read More “U.S. Senate Bill Would Prevent Feds from Regulating Fracking”
Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC
August 2, 2013August 2, 2013

More than 1 1/2 years ago MDN told you about a planned new 70-mile pipeline and compressor station to connect Utica and Marcellus wells in eastern Ohio to Spectra Energy’s Texas Eastern pipeline system (see Chesapeake Investing in New 70-Mile Ohio Pipeline). Called the Ohio Pipeline Energy Network (OPEN), the project is a $500 million joint venture between Chesapeake Energy, American Electric Power and Spectra Energy. Not since December 2011 have we heard any news about the project–until now.

Even though there’s been no media coverage, Spectra has been hard at work planning and holding public meetings for feedback on eight different proposed pipeline routes. The Federal Energy Regulatory Commission (FERC) has given Spectra until Sept. 20 to tell them which alternative is their preferred route. FERC will then make a decision and (presumably) issue a permit that will allow Spectra to begin construction. An update on the OPEN project…
Read More “Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Acting Sec of DEP Making his Agency a “Problem-Solver”
August 2, 2013August 2, 2013

We noted our sadness in March when then-PA Sec. of the Dept. of Environmental Protection, Michael Krancer, announced he was resigning (see Developing… PA DEP Sec. Krancer Resigns). Krancer was tough but fair–someone with a sharp wit (and sometimes a sharp tongue). He knew how to dish it back to anti-drillers–and they hated it. At the time of Krancer’s resignation, Gov. Tom Corbett named his deputy chief of staff, E. Christopher Abruzzo, as Acting Secretary for the DEP. Abruzzo’s appointment was panned by Democrat John Hanger, who wants to run against Corbett in the next election, calling the appointment “bizarre and irresponsible” (see Former PA DEP Sec. Hanger Blasts Interim Replacement for Krancer).

We haven’t read much in the media about Abruzzo since his appointment six months ago, however, yesterday Abruzzo addressed the Washington County, PA Chamber of Commerce’s annual energy symposium. Contrary to what political opponents would have you believe, he sounded and acted quite responsible and un-bizzare…
Read More “PA Acting Sec of DEP Making his Agency a “Problem-Solver””
Hydraulic Fracturing | Industrywide Issues | Muskingum County | Ohio | Regulation | Utica Shale

Not So Fast: Blue Rock State Forest Fracking on Hold
August 1, 2013August 1, 2013

A few days ago MDN told you that the federal Bureau of Land Management (BLM) had plans to auction off shale drilling rights for Blue Rock State Forest in eastern Ohio (see Surprise! Blue Rock State Forest in Eastern OH to be Fracked). As we pointed out, most federal land auctioned for drilling is located in the western U.S.–this is the first such instance of BLM land being auctioned in the Marcellus/Utica region that we are aware of. The federal government owns the mineral rights in Blue Rock, and the state of Ohio owns the surface rights.

Ohio state officials complained they were not consulted by the BLM about the mineral rights auction or the possibility that the forest will be fracked. So the BLM has (for now) halted their planned auction for later this year…
Read More “Not So Fast: Blue Rock State Forest Fracking on Hold”
Harrison County | Industrialization | Industrywide Issues | Ohio | Regulation | Roads | Trucking

Harrison County Ticked Off at Road Damage from Drilling Trucks
July 31, 2013July 31, 2013

Trucks going to and from Utica Shale drilling sites in Harrison County, OH are damaging the roads, and County Commissioner Dale Norris says “the honeymoon is over” with respect to shale drilling in the county.

Norris says commissioners will consider adopting new regulations in the next few weeks to assess a permit fee for trucks using local roads, so they have money to fix the damage caused by the drilling industry…
Read More “Harrison County Ticked Off at Road Damage from Drilling Trucks”
Hydraulic Fracturing | Industrywide Issues | Muskingum County | Ohio | Regulation | Utica Shale

Surprise! Blue Rock State Forest in Eastern OH to be Fracked
July 30, 2013July 30, 2013

MDN has kept readers informed about new federal fracking rules proposed by the Dept. of Interior’s Bureau of Land Management (BLM), rules that will make it quite expensive to drill (see New BLM Fracking Rule will Cost Drillers Nearly $100K per Well). We haven’t been overly concerned about the new BLM fracking regulations in the Marcellus/Utica because, as we told you, the rules will only affect fracking on federal land–almost all of which is located in the western U.S. Until now, our concern with the BLM rules has been that the federal government may, at some point, force the BLM rules on the states (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking).

However, it now appears the new BLM rules may apply in the Utica Shale much sooner than we thought. The Blue Rock State Forest, a 4,578-acre forest in Muskingum County where the state of Ohio owns the surface but the federal government owns the mineral rights, will soon be opened up by the feds for fracking. This revelation will no doubt set off the berserker alarms at anti-drilling HQ…
Read More “Surprise! Blue Rock State Forest in Eastern OH to be Fracked”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court to PUC: Knock Off the Zoning Reviews (for Now)
July 26, 2013July 26, 2013

Yesterday, the Pennsylvania State Supreme Court issued a ruling quashing (stopping) the state Public Utility Commission from carrying out some of its duties as specified under PA’s 2012 Marcellus Shale Act 13 law–duties tied to Act 13’s zoning provisions. It is a small and perhaps short-lived victory for the towns who had sued the PUC asking for relief from the PUC’s reviews of their zoning laws. It is a short-lived victory for the towns because the Supreme Court is due to decide on Act 13’s zoning provisions soon, so this decision is in effect until that bigger (and final) decision is made.

That’s the news. Now, to bring you up to speed on the background of this case and what yesterday’s decision means…
Read More “PA Supreme Court to PUC: Knock Off the Zoning Reviews (for Now)”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation | Wastewater

New CLEANER Act for Drilling Waste has a Dirty Purpose
July 26, 2013July 26, 2013

Pennsylvania Congressman Matthew Cartwright, Democrat – 17th District, has just introduced a new bill in the House of Representatives: the Closing Loopholes and Ending Arbitrary and Needless Evasion of Regulations (CLEANER) Act. The way Democrats euphomize the titles of their proposed bills is funny–torturing the language to make it sound like something it’s not. We’d like to propose our own legislation: Stop Torturing Us People In Democrat Idiotic Talkative Yammering (STUPIDITY).

This latest travesty–the CLEANER Act–perpetuates the lie that somehow oil and gas drilling have been inappropriately “exempted” from federal laws that apply to other industries. In this case, anti-drillers maintain oil and gas drilling have been inappropriately exempted from the Resource Conservation and Recovery Act (RCRA) of 1976 via legislation passed in 1980. To put oil and gas drilling under RCRA’s purview now would be to reclassify drilling waste as toxic waste (similar to nuclear waste), requiring very strict tracking and disposal regulations that go far beyond the actual hazard posed by oil and gas drilling waste. The CLEANER bill is unnecessary and its purpose is to make drilling uneconomic–i.e. to stop it.
Read More “New CLEANER Act for Drilling Waste has a Dirty Purpose”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Speakers at JLCNY 5-Year Moratorium Event Take Aim at Gov Cuomo
July 24, 2013July 24, 2013

Yesterday marked the very sad and tragic five-year anniversary of no shale drilling in New York State. The moratorium, first instituted by then-Gov. David Paterson in 2008, has increasingly frustrated the 77,000 members of the Joint Landowners Coalition of New York (JLCNY). The JLCNY and New York elected representatives made their collective displeasure with the ongoing moratorium known at a rally yesterday in Binghamton, NY. Addressing a packed room of some 150 drilling supporters, the JLCNY’s attorney Scott Kurkoski gave a stirring speech, followed by a number of elected state and local officials. Each of them took direct aim at Gov. Andrew Cuomo, telling him “it’s been long enough” and “it’s time to move forward.” Watch a video of the speeches below (22 minutes long), courtesy WIVT/WBGH News Channel 34.

The JLCNY also released the following statement yesterday:
Read More “Speakers at JLCNY 5-Year Moratorium Event Take Aim at Gov Cuomo”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Ulster County

Marbletown, NY Frack Ban Passes – 22 Page Manifesto
July 24, 2013July 24, 2013

Sometimes town leaders in New York State who vote to ban hydraulic fracturing are dullards–they don’t bother to research and understand the legal issues. It makes no difference to them that they’re trampling on the Constitutional property rights of their landowning constituents–the very people they’re sworn to protect (but don’t).

Other times, town leaders in New York who vote to ban drilling–like those in Marbletown, NY (Ulster County, Middle Hudson Valley area)–are truly, stupendously ~~stupid~~ misguided. What takes most towns a paragraph or two to do, “Don’t drill and frack anywhere in the town,” has taken the brainiacs in Marbletown 22 pages of new regulations to accomplish in their recently enacted fracking ban. And the town supervisor brags about it!…
Read More “Marbletown, NY Frack Ban Passes – 22 Page Manifesto”
Hydraulic Fracturing | Industrywide Issues | Litigation | Regulation

New Congressional Report: How Federal Laws Govern Fracking
July 24, 2013July 24, 2013

Three Congressional Research Service (CRS) researchers–two of them attorneys and one an environmental policy specialist–recently issued a new CRS report titled “Hydraulic Fracturing: Selected Legal Issues” (full copy embedded below). The 37-page report takes a close look at federal legislation and its governance of/relationship to regulation of hydraulic fracturing. Specifically, the report looks at the Safe Drinking Water Act, the Clean Water Act and the Clean Air Act, along with a number of other federal laws.

The report also takes a look at state preemption of local zoning regulations when it comes to oil and gas drilling–a hot legal issue in many states, with pending court cases in Pennsylvania, Ohio and New York…
Read More “New Congressional Report: How Federal Laws Govern Fracking”