Regulation

Hydraulic Fracturing | Industrywide Issues | Regulation

Obama Energy Sec. Steven Chu Resigns
February 4, 2013February 4, 2013

The third shoe has finally dropped (if that’s even a legitimate metaphor!). Obama’s Secretary of Energy, Steven Chu, has resigned. You may recall MDN reported early on that the three Obama cabinet members who most directly affect shale drilling—Chu, EPA chief Lisa Jackson and Dept. of Interior Sec. Ken Salazar were all rumored to be departing a second Obama term (see 3 Top Officials Rumored to be Leaving Obama Administration).

Of the three, Chu was the one rumormongers were most sure about. Yet Jackson was the first to go, and Salazar the second. On Friday, Chu announced he too would depart. His tenure at Energy has been marked by crony capitalism with the government handing out big big money to politically-connected Obama donors—Solyndra being the most famous example. It’s “so long and don’t let the door hit you on the way out” to Sec. Chu…

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

Home Stretch for NY Fracking Generates New Ad Campaign
February 4, 2013February 4, 2013

In what may be the final stretch of four and a half long years to win approval for New York State to begin using the miracle of hydraulic fracturing as has Pennsylvania, Ohio, West Virginia, Texas, Louisiana, Wyoming, Oklahoma, Colorado and so many other states, the New York State Petroleum Council (NYSPC) has launched a new ad campaign aimed at one person: Gov. Andrew Cuomo. Listen and watch the new commercials below.

Last Friday the NYSPC issued this press announcement about the new ad campaign:

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Legislation Would Release Untapped Acreage for New Lease
February 4, 2013February 4, 2013

Help may be on the way for Pennsylvania landowners who have leased their land, but not all of their land is part of a “production unit.” PA State Sen. Gene Yaw has introduced legislation what would release the land not in production so it could, theoretically, be leased again, or leased to someone else.

This update from one of our favorite blogs, ShaleEnergyLawBlog:

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Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Finalizes Air Pollution Rules for Drillers & Compressors
February 1, 2013February 1, 2013

The Pennsylvania Dept. of Environmental Protection (DEP) yesterday announced final revisions to the “general permit” (GP-5) that governs air emissions for pipeline compressor stations and for drill sites. The new allowable limits, endorsed by the PA drilling industry, are “75 to 90 percent stricter than current limits” and go beyond federal rules according to the DEP.

The new DEP rules will allow the industry to install and use more engines at compressor stations and on the drill pad (engines powered by the natural gas being produced) to encourage the overall reduction in pollution. Here’s the announcement from the DEP:

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Industrywide Issues | Litigation | Regulation

Law Firm Launches Study of Legal Trends in Shale Development
February 1, 2013February 1, 2013

Yeah, we know it’s a press release from a law firm (we see them every day!). But this one, MDN reckons, is noteworthy. The 12th largest oil and gas law firm in the country, Steptoe & Johnson (with offices about everywhere in the Marcellus & Utica Shale), is conducting a study of legal trends for businesses working to develop the Marcellus, Utica and other shale plays. The results are due to be released in April and should be interesting.

Here’s the details about the new study (and how you can participate) from Steptoe & Johnson:

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Accidents | Columbia Pipeline Group | Energy Services | Industrywide Issues | NiSource | Pennsylvania | Pipelines | Regulation | Statewide PA | Statewide WV | West Virginia

Feds Eye Regulating PA Marcellus Gathering Pipelines
January 30, 2013January 30, 2013

In early December, the Columbia Gas Transmission pipeline (owned by Nisource) exploded near Sissonville, WV—10 miles north of Charleston (see Columbia NatGas Pipeline Explodes Near Charleston, WV). The repercussions are still being felt. WV Sen. Jay Rockefeller held a Senate “field hearing” about pipeline safety on Monday in Charleston, WV. The first person to testify was Sissonville resident Sue Bonham who thought the world was literally be blowing up. The fire that burned in Sissonville near her home for more than an hour was so hot it burned the asphalt on I-77 into cinders.

So it’s no surprise that the federal government would start nosing around non-federally regulated (smaller) pipelines. Apparently they’ve set their sites on local gathering lines in the PA Marcellus:

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Hydraulic Fracturing | Industrywide Issues | Regulation

BLM Sends New Draft Fracking Rules to White House for Review
January 30, 2013January 30, 2013

The Dept. of Interior’s Bureau of Land Management (BLM) proposed new fracking rules for shale drilling on federal lands back in May 2012 (see BLM Issues Proposed New Rule for Fracking Federal Lands). The drilling industry was quick to react (negatively) against what they view as largely unnecessary and extremely expensive new regulations (see New Fracking Rules for Federal Lands will Cost $1.5B).

Just a few weeks ago, BLM announced they would delay implementing their new rules until sometime this spring, to give them the opportunity to refine the rules first. Apparently they work pretty fast. Yesterday BLM sent a revised draft of their new proposed fracking rules to the Obama White House for review:

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Industrywide Issues | Regulation | Research | Statewide WV | West Virginia

WV DEP Late in Filing Required Marcellus Environmental Studies
January 30, 2013January 30, 2013

In December 2011 the West Virginia legislature pass sweeping new shale drilling regulations in record time. The effort and the end result was heralded by then acting (now sitting) Gov. Earl Ray Tomblin as a “milestone” in addressing concerns about Marcellus Shale drilling in WV.

The 2011 legislation called for three new environmental studies to be completed and delivered to lawmakers. Two of the studies were due within a day of each other: Dec. 31, 2012 and Jan. 1, 2013. Both are late. According the state DEP, one study will be along in mid-February. The other? No estimated date…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Oneida County | Regulation

Town of Westmoreland, NY Bans Fracking
January 30, 2013January 30, 2013

Another New York township has voted (unanimously) to strip away the Constitutional rights of some of its citizens. Westmoreland (Oneida County), NY is the latest township to decide that a board of five people know what’s best for everyone else, in contradiction of New York State law:

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Hydraulic Fracturing | Industrywide Issues | Medina County | Ohio | Regulation

Brunswick, OH (Almost) Thumbs Nose at State over Home Rule
January 30, 2013January 30, 2013

In the latest dustup over “home rule,” city council members in Brunswick (Medina County), Ohio don’t like the state telling them they can’t regulate oil and gas drilling in their own borders. Unfortunately those same city council members don’t seem to know a thing about the miracle of hydraulic fracturing and they’re certainly not qualified to regulate it—but we digress.

Brunswick city council members were set to vote on a non-binding resolution on Monday telling Columbus to go take a hike, but Brunswick Mayor Gary Werner was the calmer head who prevailed. He talked council members into postponing a vote until the Feb. 11 meeting. Werner’s clear-headed reasoning: Why tell the drilling industry that’s transforming the economic landscape in Ohio that Brunswick isn’t interested in jobs or money from drilling?

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Allegheny County | Industrywide Issues | Pennsylvania | Regulation | Wastewater

Permit for PA Frack Wastewater Plant Rescinded by DEP
January 29, 2013January 29, 2013

A New Jersey company had plans (and a permit) to build a Marcellus Shale wastewater treatment plant in North Fayette, PA that would process between 1/2 and 1 million gallons of fracking wastewater per day. The plant would use the wastewater to produce road salt, sidewalk de-icer, roadway dust suppression liquids and other products. One small problem: there may be tiny trace amounts of arsenic, lead, mercury and other nasty compounds in the final products.

The Pennsylvania Dept. of Environmental Protection granted Integrated Water Technologies a permit last August to build the plant and sell the salts and liquids manufactured from wastewater for use throughout the state. However, anti-drilling group PennFuture appealed the permit and now the DEP is backpedaling and “quietly” rescinded the permit by publishing a notice in the Pennsylvania Bulletin on Saturday. Will the plant still be built?

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Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

Is Shale Brine Dumping Coming to OH Landfills?
January 28, 2013January 28, 2013

MDN friend and Akron Beacon Journal reporter, Bob Downing, has just published an excellent piece of investigative journalism about brine dumping in Ohio landfills. Bob has tracked down a change in policy in Ohio that theoretically allows landfills to begin accepting brine from shale drilling. Brine is (mostly) naturally occurring salt water from deep below the earth that comes out of the wellbore after the well is drilled.

Some of the state’s 40 landfills have received permits to accept drill cuttings and other solids from the drilling process, but so far none have received permits to accept liquid brine that’s solidified with fly ash and other materials. That may be about to change…

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New PA Emergency Response Planning Reg for Shale Wells Adopted
January 28, 2013January 28, 2013

The Pennsylvania Environmental Quality Board (EQB) and Pennsylvania Emergency Management Agency on Saturday published final regulations covering Emergency Response Planning at Unconventional (i.e. Marcellus) Well Sites (a copy of the new regulation is embedded below).

The regulation was adopted by the EQB in November following a review by the PA Dept. of Environmental Protection’s Oil and Gas Technical Advisory Board last September. The regulation sets requirements for the preparation and implementation of emergency plans at Marcellus Shale drilling sites.

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

IOGA NY Becomes “Adversarial” – DEC Must Revise Fracking Rules
January 25, 2013January 25, 2013

Although the latest public comment period for proposed new drilling rules in New York officially closed on Jan. 11, we’re just now learning about the “comments” (more like a treatise) made by the Independent Oil and Gas Association of New York (IOGA of NY) to the Dept. of Environmental Conservation (DEC), filed on the closing day of Jan. 11.

Many of IOGA of NY’s members are small and medium-sized drillers, and according to IOGA, the DEC’s latest draft of proposed drilling rules simply go too far for smaller drillers. They also say some of the new proposals are illegal. IOGA of NY provided a detailed, 119-page response/critique to the DEC which outlines chapter and verse the changes they believe must be made to the proposed new rules from the DEC before fracking in New York would be viable. A copy of the entire 119-page response is embedded below.

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Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Regulation | UGI Energy Services | Wyoming County (PA)

UGI Plans Start of PA Marcellus Pipeline Despite Zoning Appeal
January 25, 2013January 25, 2013

Pennsylvania energy utility UGI is working hard to bring low-cost, locally produced Marcellus Shale gas to its customers in the Wilkes-Barre/Scranton area. Currently UGI gets natural gas for its northeast PA customers from the Gulf of Mexico, which is crazy given the abundant, local Marcellus natural gas supplies all around them. But the Luzerne County zoning board last September denied UGI the right to build a much-needed compressor station that would help bring local gas to local customers (see Luzerne County Denies UGI Permit to Build Compressor Station).

UGI appealed that decision in court, and in the meantime, they’re moving forward with building a 28-mile pipeline anyway—an extension of the Auburn Pipeline from Wyoming County to Luzerne County (see the map below for the route of the new pipeline). If UGI’s appeal for the compressor station for the new pipeline fails, they do have a backup plan…

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

NY Democrat Senators (Yet Again) Push Fracking Ban Legislation
January 25, 2013January 25, 2013

Perhaps sensing the fracking issue is about to become moot if the New York Dept. of Environmental Conservation releases new fracking rules in a few weeks, a group of anti-fracking/anti-drilling Democrat state senators are once again pushing for a law to permanently ban fracking in the Empire State.

A pair of newly-elected Democrat senators joined their colleagues on the left to try and force the issue to a vote on the Senate floor—before it’s “too late”…

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