Regulation

Energy Companies | Gordy Oil | Industrywide Issues | Monroe County | Regulation | West Virginia

WV County Treats Driller as Partner Instead of Enemy with Positive Result
June 6, 2011June 6, 2011

Instead of treating Marcellus Shale drilling companies as enemies or opponents, officials in Monroe County (West Virginia) instead decided to treat them as partners. Monroe is a rural county in southeastern WV with an underground water system mapped by cavers. Monroe sits atop a karst geological formation, which contains sinkholes, underground caves and streams that sink underground. Water under some parts of the county can travel miles in a single day, so Monroe officials are concerned about any potential spillages and about fracking in some areas.

Marcellus Shale drilling in the state has no special regulations as it does in other Marcellus states, and the most recent session of the legislature adjourned without passing proposed new regulations. So officials in Monroe County proactively sought out Gordy Oil, the only drilling company that has expressed an active interest in drilling in the county, to see if the two might work out an agreement, and it resulted in a “memorandum of understanding” between the two.

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Krancer Wants Tighter Rules Governing Marcellus Drilling in the State
June 3, 2011June 3, 2011

Pennsylvania Department of Environmental Protection (DEP) Secretary Michael Krancer sent a letter on May 27 to Lt. Gov. Jim Cawley, chairman of the governor’s Marcellus Shale Advisory Commission. Krancer, along with Cawley, is a member of the commission. The commission’s charter is to deliver a list of comprehensive policy recommendations to the governor and the state legislature by July 22 to improve Marcellus drilling in the state.

The fact that Krancer is calling for tighter regulations is a sure sign that new regulations are on the way in PA. Among the recommendations outlined in the letter:

Read More “PA DEP Sec. Krancer Wants Tighter Rules Governing Marcellus Drilling in the State”
Broome County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | XTO

Large Turnout for DRBC Hearing in Deposit, NY – Last Minute Surprise from DEC Head Joe Martens
June 2, 2011June 2, 2011

The Binghamton Press & Sun-Bulletin (PSB) reports about 300 people attended last evening’s Delaware River Basin Commission hearing in Deposit (Broome County), NY to consider an application from XTO Energy (now owned by ExxonMobil) to withdraw 250,000 gallons of water per day from the Oquaga Creek in the Town of Sanford to support Marcellus Shale drilling activities in New York, when and if drilling begins. The PSB said, “While both sides enjoyed healthy representation on Wednesday, the majority of the speakers spoke against the withdrawal.”

XTO’s application is the first in New York State, and only the second application in the overall DRBC region. The first application, which was approved in July 2010, was from Stone Energy for water withdrawals in Wayne County, PA.

Read More “Large Turnout for DRBC Hearing in Deposit, NY – Last Minute Surprise from DEC Head Joe Martens”
Energy Companies | Erie County | Hydraulic Fracturing | Industrywide Issues | Lake Erie Energy Partners | Pennsylvania | Pipelines | Regulation

Lake Erie Energy Partners Walks Away from North East Township – Refuses to Drill Any More Wells
June 2, 2011June 2, 2011

Gas drilling opponents in North East Township (Erie County), PA have won a small victory in forcing one driller to leave the area. Lake Erie Energy Partners completed just one of 11 planned wells in the Township, but they will walk away and not complete the other 10 because of a proposed ban on hydraulic fracturing and because Township officials have reneged on a promise to the company.

Read More “Lake Erie Energy Partners Walks Away from North East Township – Refuses to Drill Any More Wells”
Broome County | Delaware County | Energy Companies | Industrywide Issues | New York | Regulation | XTO

DRBC Hearing in Deposit, NY Today – JLCNY Encourages Gas Drilling Supporters to Attend
June 1, 2011June 1, 2011

The Delaware River Basin Commission (DRBC) will hold a hearing today in Deposit, NY to consider an application from XTO Energy to withdraw up to .25 million gallons of water per day from the Oquaga Creek in the Town of Sanford, NY. The water withdrawals are to support XTO’s drilling activities—both exploration and production—in Broome and Delaware Counties (NY). Bear in mind drilling has not yet begun in New York, and further, the DRBC has not yet released drilling guidelines for the area they oversee which includes parts of the Marcellus Shale region in both New York and Pennsylvania.

If the DRBC approves the water withdrawal, that is a good first step for those who support drilling, and (perhaps) a signal that the DRBC will allow drilling to commence soon in Pennsylvania in those areas it controls. (The DRBC has not allowed any drilling in the Marcellus areas under its jurisdiction in PA.)

For more details about today’s DRBC hearing in Deposit, visit this web page: //www.state.nj.us/drbc/XTOEnergy.htm. MDN has embedded the hearing docket below that contains the particulars of XTO’s application to the DRBC.

The following email notification about today’s meeting was received by MDN last evening from the Joint Landowners Coalition of New York (JLCNY).

Read More “DRBC Hearing in Deposit, NY Today – JLCNY Encourages Gas Drilling Supporters to Attend”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Attorney General Sues the Federal Government Over Fracking
June 1, 2011June 1, 2011

In an attempt to stop Marcellus Shale drilling in New York by using the court system, NY Attorney General Eric T. Schneiderman announced on Tuesday that he is suing the federal government “to commit to a full environmental review of proposed regulations that would allow natural gas drilling – including the potentially harmful "fracking" technique – in the Delaware River Basin.” AG Schneiderman made his initial threat last month (see MDN’s coverage here). The AG’s announcement seems timed to coincide with a hearing set for today by the Delaware River Basin Commission to consider an application to withdraw water for drilling purposes.

The press statement from the AG’s office (full text below) contains unsubstantiated allegations that fracking poses risks and threats to the environment—the same recitation of inaccurate claims we’ve heard time and again from those who seek an outright ban on gas drilling. It also presumes it is the federal government’s role to regulate drilling—which under current law, it is not. Those who oppose drilling seek to regulate it using the “back door” of the Safe Drinking Water Act (SDWA), the National Environmental Policy Act (NEPA) and other federal laws. This lawsuit seeks to push a federal takeover of drilling by regulating and controlling it at the federal level.

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Hydraulic Fracturing | Industrywide Issues | Regulation

EPA Administrator Lisa Jackson Likes Natural Gas, But Isn’t So Sure About Fracking
June 1, 2011June 1, 2011

Federal Environmental Protection Agency (EPA) Administrator Lisa Jackson made a passing reference to natural gas and hydraulic fracturing at a Congressional hearing last week. Both anti- and pro-drilling supporters felt she leaned in their respective direction. Here is what has been reported about her comments:

Read More “EPA Administrator Lisa Jackson Likes Natural Gas, But Isn’t So Sure About Fracking”
Industrywide Issues | New York | Regulation | Statewide NY

NY Gov. Cuomo Orders DEC Commissioner Joe Martens to Get New Drilling Guidelines Done by July 1
May 30, 2011May 30, 2011

In an interesting development, New York Gov. Andrew Cuomo has sent along marching orders to the Department of Environmental Conservation (DEC) to complete the next version of the draft Supplemental Generic Environmental Impact Statement (dSGEIS)—the new guidelines to be used in drilling in the Marcellus Shale in New York—by July 1st. The previous deadline was a soft deadline issued by former Gov. David Paterson of “on or about June 1st.” The new deadline issued by Cuomo is July 1st—no waffling. Cuomo has also instructed the DEC to visit a well blowout site in Bradford County, PA to see what can be learned and incorporated into the final document from that accident.

Read More “NY Gov. Cuomo Orders DEC Commissioner Joe Martens to Get New Drilling Guidelines Done by July 1”
Atlas Energy | Chesapeake Energy | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Statewide PA | SWEPI | Talisman Energy | Wastewater

PA Drillers Comply with Federal EPA’s Request for Information on Wastewater Disposal
May 27, 2011May 27, 2011

When the Pennsylvania Department of Environmental Protection (DEP) recently told Marcellus Shale drillers in the state to stop hauling wastewater from fracking to municipal sewage treatment plants that are not equipped to fully treat the wastewater by May 19 (see MDN story here), they all committed to comply and indeed did comply. But the federal Environmental Protection Agency (EPA) jumped in and demanded detailed plans from six drillers as to just how they planned on treating and disposing of the wastewater once the they stopped using the municipal plants.

The EPA’s deadline for the six drillers to file plans was Wednesday, May 25. Five of the six complied by the deadline:

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Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Regulation | Washington County

MarkWest, Range Resources File Legal Appeal Over Denial of Permit for Gas Compressor Station in Cecil, PA
May 24, 2011May 24, 2011

MarkWest wants to build a Marcellus Shale gas compressor station in Cecil Township (Washington County), PA. They filed an application for a “special exception” to allow them to build the plant but were denied by the zoning board. On April 21, MarkWest filed an appeal in Washington County civil court to have the decision overturned. MarkWest said at the time it hopes to settle the matter “amiably” but was filing to “preserve its rights.” Part of the appeal states:

Read More “MarkWest, Range Resources File Legal Appeal Over Denial of Permit for Gas Compressor Station in Cecil, PA”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Will There be New Marcellus Drilling Regulations Passed by the PA Legislature This Year?
May 16, 2011May 16, 2011

Groups that oppose drilling in Pennsylvania, under the guise of “let’s be reasonable here,” have been proposing wish lists of new regulations for several years now. Some of their proposals make sense and should be carefully considered. But in considering their proposals, you must realize those organizations have ulterior motives—to completely ban gas drilling. It’s interesting to note their pronouncements lately have gone up an octave on the shrillness scale.

These groups could not get new legislation and regulations passed under Gov. Ed Rendell, a Democrat, with both houses of the PA legislature controlled by Democrats. So now that a Republican (Tom Corbett) is governor, someone they consider “in the pocket” of the drilling industry, and with both houses of the legislature controlled by Republicans, these groups say now is the time to reform the PA Oil and Gas Act. Something does not add up with this picture.

Read More “Will There be New Marcellus Drilling Regulations Passed by the PA Legislature This Year?”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Wastewater

Federal EPA Continues to Bully Pennsylvania Using the Safe Water Drinking Act
May 13, 2011May 13, 2011

The federal Environmental Protection Agency (EPA) continues to assert itself into states’ business by claiming authority of the federal Safe Water Drinking Act. The latest example was yesterday. The EPA requested (ie demanded) details from six drillers who operate in Pennsylvania on where they will dispose of fracking fluid wastewater now that the PA Department of Environmental Protection (DEP) has told drillers that certain municipal sewage treatment plants not specially equipped will no longer be able to accept fracking wastewater. The EPA wants to know where that wastewater will now go.

But the PA DEP itself has not escaped the heavy hand of the federal EPA either. The EPA has “requested” (ie demanded) PA DEP provide a list of facilities that accept fracking wastewater. And the EPA has other “requests” for the DEP on how to do things better (see the EPA press release below).

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Industrywide Issues | New York | Regulation | Statewide NY

Pro-Drilling Supporters Meet with Legislative Officials in Albany, NY – Gov. Cuomo Stresses Patience
May 12, 2011May 12, 2011

The standard operating procedure for groups opposed to Marcellus Shale drilling in New York State is to organize protests. The protests in Albany and other locations have been small in numbers, but those opposed have been “loud” in their opposition. Supporters of drilling, on the other hand, are taking a different approach. Instead of protest rallies, they arrange private meetings and go for small group discussions. That strategy was on display Wednesday in Albany:

Read More “Pro-Drilling Supporters Meet with Legislative Officials in Albany, NY – Gov. Cuomo Stresses Patience”
Brooke County | Chesapeake Energy | Energy Companies | Industrywide Issues | Regulation | West Virginia

WV City Votes to Ban Marcellus Shale Gas Drilling, Court Challenge Coming from Chesapeake Energy
May 12, 2011May 12, 2011

City council members from Wellsburg, West Virginia, located in the panhandle area of the state (in Brooke County), on Tuesday voted to ban natural gas drilling and hydraulic fracturing both inside the city limits and outside city limits within a mile.

Read More “WV City Votes to Ban Marcellus Shale Gas Drilling, Court Challenge Coming from Chesapeake Energy”
Hydraulic Fracturing | Industrywide Issues | Regulation

Former PA DEP Officials, Industry Group Point Out Problems with Duke University Study Linking Methane in Water with Fracking
May 11, 2011May 11, 2011

More questions cast doubt on the Duke study which claims to prove there is a link between gas drilling and high concentrations of methane in nearby well water, including from someone quoted in the Duke study itself:

Read More “Former PA DEP Officials, Industry Group Point Out Problems with Duke University Study Linking Methane in Water with Fracking”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Two Environmental Groups Propose List of Changes to PA Oil & Gas Act to Tighten Controls on Marcellus Drilling
May 11, 2011May 11, 2011

The Pennsylvania Environmental Council (PEC) and the Chesapeake Bay Foundation (CBF) provided a detailed prescription of amendments they say “must be made” to the Pennsylvania Oil and Gas Act so that state law can effectively regulate and manage deep shale and unconventional drilling techniques that were never contemplated when the law was enacted. Called the “Marcellus Shale Amendments to the Pennsylvania Oil and Gas Act,” the proposal was provided to PA Gov. Corbett’s Marcellus Shale Commission and members of the Pennsylvania General Assembly in separate meetings on Tuesday.

Among the 50 proposed changes in the PA Oil and Gas Act proposed by the two groups:

Read More “Two Environmental Groups Propose List of Changes to PA Oil & Gas Act to Tighten Controls on Marcellus Drilling”