Regulation

Industrywide Issues | Ohio | Regulation | Statewide OH | Taxation

Ohio Legislature Sees Flurry of Shale Drilling Bills
December 10, 2012December 10, 2012

As the Ohio General Assembly comes to a close later this month (the end of their two-year term), Democrats have introduced a number of bills aimed at restricting the Utica and Marcellus Shale drilling industry in the state. Fortunately the Assembly is controlled by Republicans, so these bills will go nowhere. Still, it’s instructive to see what’s on Democrats’ hearts and minds, and possibly what the future holds if the political winds in Ohio change.

Here’s the list of bills recently introduced, and a summary of what they would do:

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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Visits Binghamton, (Non)Comments on Fracking Decision
December 6, 2012December 6, 2012

Gov. Andrew Cuomo visited New York’s Southern Tier region yesterday—specifically Binghamton—to get a first-hand update on the Southern Tier’s economic development plan. (Short version: our local economy is and has been in the crapper for years.) Gov. Andy was greeted by anti-drilling and some pro-drilling protesters. During a press conference, he was asked by reporters to comment on whether and when fracking would come to the state. His answer was non-committal—he’s a good politician that way.

Here’s what he did, and did not, say:

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Lawyer Tom West Sees Light at End of NY’s Fracking Tunnel
December 6, 2012December 6, 2012

Albany-area lawyer Tom West addressed the annual meeting of the New York State Association of General Contractors. He gave them his latest thinking on whether, and when, fracking may begin in New York. Why does Tom West’s opinion matter? He’s the lead attorney for two cases working their way through the court system now, both cases dealing with the right (or non-right) of local municipalities to outright ban shale gas drilling in their communities.

Tom has a better insight than most into what’s happening with fracking in New York. And he sees a teeny, tiny light at the end of a very long tunnel…

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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Moon Twp, PA Votes to Ban Fracking in 75% of the Town
December 6, 2012December 6, 2012

The Moon Township Board of Supervisors (Allegheny County, PA) voted last night to ban fracking in areas zoned for residential, commercial or educational uses. The vote revises Moon’s existing zoning ordinance to comply with the new Act 13 law which stipulates local municipalities cannot completely ban fracking.

Since no permits to drill have been applied for nor granted (yet) in Moon, the newly revised ordinance means landowners who previously signed leases and live in one of the banned districts will never be allowed to drill. A map showing where drilling is allowed indicates drilling will only be allowed in perhaps 25% of the town (see map below).

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

The “Compendium of its Meaning” for NY Fracking
December 5, 2012December 5, 2012

Both sides of the drilling debate in New York are still coming to grips with both the fact, and the way, the state Dept. of Environment Conservation (DEC) filed for a 90-day extension to the fracking rulemaking process—keeping the possibility of fracking alive in New York.

Anti-drillers, never at a loss for things to complain about, mostly complain the DEC’s revised proposed rules don’t indicate where the rules have changed from previous versions (i.e. redline), making them flip back and forth between previous versions and the new version (perhaps they have a case for carpel tunnel syndrome?)…

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Industrywide Issues | Ohio | Regulation | Statewide OH

[Corrected] ODNR Moving to Quarterly Production Numbers for O&G
December 5, 2012December 5, 2012

CORRECTION: MDN has just been alerted by our friends at the Akron Beacon Journal that our information about quarterly reporting coming from ODNR is not correct. The proposed legislation which contained language about filing quarterly updates to production numbers ultimately did not pass the state legislature and therefore Ohio will (for now) stay on yearly reporting—which is unfortunate. Our thanks to Bob Downing for the heads-up on this.

On Monday the Ohio Dept. of Natural Resources (ODNR) issued its annual Ohio Mineral Industries Report. A very small part of that report covers drilling and production for oil and gas in Ohio (see that section of the report below). ODNR has taken a lot of criticism lately over the fact that shale oil and gas production numbers are only required to be filed and reported once per year by drilling companies. ~~Apparently the criticism has prompted ODNR to change the reporting requirement.~~

~~Starting in 2013, the ODNR will require (and will itself) report oil and gas production numbers on a quarterly basis.~~

Read More “[Corrected] ODNR Moving to Quarterly Production Numbers for O&G”
Hydraulic Fracturing | Industrywide Issues | New York | Onondaga County | Regulation

Town of Onondaga, NY Votes to Permanently Ban Fracking
December 4, 2012December 4, 2012

In a purely political move, the Town of Onondaga, NY (Syracuse suburb) voted last night to permanently ban hydraulic fracturing—even though a) the Syracuse watershed area, which Onondaga is part of, is expressly off limits for drilling in the DEC’s draft drilling rules, and b) such a permanent ban may not be legal (two similar cases are on appeal in NY courts).

The town had previously passed a temporary ban. Last night’s vote makes it “permanent”—although Onondaga’s ban will be ruled null and void if the two aforementioned cases are decided in favor of landowners (look for a decision in Spring 2013).

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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY | Tompkins County

NY Politicians Mad at DEC for Filing Fracking Rule Extension
December 4, 2012December 4, 2012

Binghamton’s failed mayor, Matt Ryan, and other anti-drilling politicians went to Albany yesterday (presumably using taxpayer money to fund the trip) to carp and complain about the Dept. of Environmental Conservation’s filing for a 90-day rule extension which keeps the process of new fracking regulations alive—at least for another few months. Mayor Matt and Assemblywoman Barbara Lifton (from where else? Ithaca) want the DEC to knock it off:

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Accidents | Chesapeake Energy | Energy Companies | Industrywide Issues | Regulation | West Virginia | Wetzel County

Chesapeake Fined $600K by EPA for Building Road in Swamp
December 4, 2012December 4, 2012

The federal Environmental Protection Agency (EPA) is on a tear. Last week the EPA announced a settlement and fine of $177,500 with PDC Mountaineer for draining a one-acre swamp in West Virginia (see this MDN story). Yesterday the EPA settled another Clean Water Act (CWA) case in the WV Marcellus—this one with Chesapeake Energy.

Chesapeake is getting fined a whopping $600,000 and put on two years probation for building a road through a Wetzel County, WV swamp. Seems like the EPA has a fixation on swamps (which are euphemistically called “wetlands”). Here’s the details for the Chesapeake settlement from the U.S Attorney’s office:

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC: We’ll Have our Cake and Eat it Too
December 3, 2012December 3, 2012

Last week when the New York Dept. of Environmental Conservation (DEC) filed for a 90-day extension to the rulemaking process for new fracking rules, the DEC issued a press statement to some media outlets (but still has not posted it on their website). A Gannett reporter provides us with the four paragraph statement, which contains several curious comments.

The following statement was made last week by DEC spokesperson Emily DeSantis:

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Pro-, Anti-Drillers Comment on NY DEC Revised Fracking Rules
December 3, 2012December 3, 2012

Following the release of a revised set of “tweaked” drilling rules last week by the New York Dept. of Environmental Conservation (DEC), both sides of the drilling debate had observations about the revised rules. In general, some of the language was tightened, tweaked or expanded. In some cases rules were made more strict (on setbacks, for example). What do pro- and anti-drillers think of the DEC’s 90-day rule extension and the documents released as part of it?

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Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

MD Fracking Commission Casts First Vote – in 15 Months!
December 3, 2012December 3, 2012

Fifteen long months after it was created, Maryland’s Marcellus Shale Safe Drilling Initiative Advisory Commission, set up by Gov. Martin O’Malley, has cast its first formal vote. The vote came in western Maryland at a regularly scheduled meeting of the group.

The vote by the Commission proposes four broad principles revolving around (surprise!) money. Maryland legislators are making noise about passing new laws concerning the future of drilling during the next legislative session (due to meet in January), and the Commission apparently wanted to get out in front of some of the ideas being tossed around with their opinion.

Read More “MD Fracking Commission Casts First Vote – in 15 Months!”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC Files for 90-Day Extension on Fracking Rules
November 30, 2012November 30, 2012

Yesterday the New York State Dept. of Environmental Conservation (DEC) applied for a 90-day extension to the rulemaking process with respect to new rules for hydraulic fracturing (“fracking”). As MDN has endlessly chronicled, the DEC faced a deadline of yesterday (Nov. 29) to either release revised new rules, not release them and start the process all over again, or file for a 90-day extension. They opted for Door #3.

As part of filing for the extension the DEC is required to release a “substantially revised” set of proposals which must be opened to public comment for a 30-day period. The DEC posted 11 documents on their website yesterday (see this page) as part of filing for the extension. The AP did some digging (and perhaps knows someone inside at DEC) and provided this brief analysis of the differences in the new rules from the previous draft, changes that are new and public for the first time with this release:

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Lenape Resources | Litigation | Livingston County | New York | Regulation | Statewide NY

Lenape Sues Avon, NY & DEC over Fracking Ban – Seeks $50M
November 30, 2012November 30, 2012

The residents of Avon, NY will have to come up with $50 million if a local driller wins a lawsuit filed earlier this month. Lenape Resources, a small, independent conventional (vertical) natural gas driller in western New York sued Avon, NY and the state Dept. of Environmental Conservation (DEC) because of a broad-based ban on fracking and natural gas activities in the township passed in June.

Avon, in a misguided attempt to ban fracking, drafted and passed a new zoning law so broad it affected not only unconventional shale drilling but also conventionally drilled (vertical) gas wells. At the time, Lanape’s president John Holko threatened to sue both the town and the DEC if the ban was not rescinded (see this MDN story for background on the ban and Holko’s threat of a lawsuit). The ban stayed, the DEC has refused to enforce a 1981 state law that says only the DEC has the power to regulate drilling, so Holko has sued. He’s asking for compensation to reimburse him for the millions the company has invested in wells and other infrastructure in the township, and for lost revenue because he’s had to shut it all down.

Way to go Avon! Three town board members have just bankrupted your township.

Read More “Lenape Sues Avon, NY & DEC over Fracking Ban – Seeks $50M”
Accidents | Energy Companies | Harrison County | Hydraulic Fracturing | Industrywide Issues | PDC Mountaineer | Regulation | West Virginia

EPA Fines PDC Mountaineer for Clean Water Act Violations in WV
November 30, 2012November 30, 2012

The federal Environmental Protection Agency (EPA), under the guise of the Clean Water Act (CWA), is poking it’s unwanted nose into Marcellus Shale gas drilling—again. Yesterday the EPA announced a settlement with PDC Mountaineer for what they say are violations of the CWA at four locations (for two gas wells). The company will pay a fine of $177,500, in addition to paying big bucks to restore problems they created while drilling two wells in Harrison County, West Virginia.

What was PDC’s environmental crime? They drained a one-acre swamp (euphemistically called a “wetland”) without getting permission. Even though PDC has agreed to pay the fine and restore the swamp (if they can), as part of the deal they did not admit to any violations of the CWA.

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Health Impacts | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC Pays $480/Hour to Health Expert for Fracking Review
November 30, 2012November 30, 2012

Included in part of a Gannett story about the New York DEC’s release of revised portions of proposed drilling regulations, we got word of how much New York State is paying three outside “experts” to give an assist to State Health Commissioner Nirav Shah in his review of the DEC’s proposed fracking rules with an eye on their impact on public health.

The hourly amount paid to John Adgate makes me think I’m in the wrong profession:

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