New York

Energy Services | Hydraulic Fracturing | Industrywide Issues | New York | Pipelines | Spectra Energy | Statewide NY

Sierra Club Attacks FERC for Approving NYC Pipeline
June 25, 2012June 25, 2012

Recently the Federal Energy Regulatory Commission (FERC) approved the construction of a 20-mile pipeline from New Jersey to New York City (see this MDN story). Spectra Energy is constructing the pipeline to the tune of $1.2 billion (a mini-economic boom for NJ/NY). The new pipeline and the cheap natural gas it will bring to NYC will reduce oil burning, which will be mandated starting in 2015 when NYC residents and landlords will no longer be allowed to burn No. 6 fuel oil. The new pipeline will be the equivalent of taking the emissions of 1 million cars off city streets per year. A good thing, no?

According to Sierra Club, that is a “no.” The Sierra Club doesn’t want cheap natural gas delivered to NYC, saving customers millions of dollars and saving the environment, because they don’t like fracking and the gas will mostly come from the Marcellus Shale. And that doesn’t fit with the the Sierra Club’s “attack everything natural gas” philosophy. So they’ve begun the process of protesting the approval for the pipeline, a process that will eventually end in federal court. Stunningly, in the paperwork they filed last week, they blame FERC for doing its job!

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

Local Politicians Gather in Albany, NY to Support “Home Rule”
June 21, 2012June 21, 2012

A number of New York State local government officials gathered in Albany on Monday, June 18 to talk about and support a new initiative to grant local municipalities the legal right to control oil and gas drilling in their borders. The concept is referred to as “home rule” and it’s gathering momentum with both Democrats and even with some Republican state legislators.

The event was sponsored by a group of anti-drilling groups, including Sustainable Otsego, Catskill Citizens for Safe Energy, and Otsego 2000. The anti-drilling group Shaleshock was also present and videoed the speakers. They offer the video on their website (click the link below to view it).

This was the press release about the home rule gathering:

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Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Josh Fox Releases Short Movie Targeting Gov. Andrew Cuomo
June 21, 2012June 21, 2012

Josh Fox, a talented movie-maker and master purveyor of half-truths and outright lies in the mostly fictional movie Gasland, has just released a new short “documentary” called The Sky is Pink aimed squarely and solely at New York Gov. Andrew Cuomo. It seems the anti-drilling movement is desperate to prevent any kind of high volume hydraulic fracturing from getting a fair evaluation in New York State—so they’re pulling out all the stops to try and make sure it doesn’t.

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Hydraulic Fracturing | Industrywide Issues | Monroe County (NY) | New York | Regulation

Rochester, NY Votes to Ban Fracking for 1 Year
June 20, 2012June 20, 2012

Et tu Rochester? Rochester, NY is the latest New York municipality to ban hydraulic fracturing. Their ban is for one year.

Seems Cuomo’s trial balloon to allow fracking (nowhere near Rochester) and the soon-to-be-released new drilling rules from the state DEC have scared some uninformed politicians, like those in Rochester, into acting rashly.

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Chenango County | Delaware County | Landowner Coalition News | New York | Otsego County

Large Combined Upstate NY Landowner Meeting June 21
June 20, 2012June 20, 2012

MDN received the following announcement about a combined landowner coalition meeting happening tomorrow night (Thursday night) in Otego, NY. Two coalitions will meet together: The Central New York Landowner Coalition and the Unatego Land Coalition. MDN knows from previous meetings that we’ve attended that the CNY coalition is quite large, perhaps the single largest New York coalition with thousands of active members. The meeting will feature a screening of the new Truthland movie along with a presentation by former NY DEC Commissioner Mike Zagata.

Combined Coalition Meeting (With the Unatego Land Coalition)
June 21, 2012 – 7PM – Unatego Jr/Sr High School – Otego, NY
Full Length "Truthland" Movie starts at 6:40PM

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Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Albany Times Union Announces Support for Fracking
June 18, 2012June 19, 2012

Whoa, wait a minute. The editorial board of the very liberal Albany Times Union is (gasp) in favor of limited fracking in New York State as a test. Really? Really.

But of course, they condition it all on prior assurances of safety from DEC and EPA, and they want all sorts of ands, ifs and buts inserted to conduct such a test.

Here’s what they said in a recent editorial (and below, why this is politically significant):

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Tompkins County

Enfield, NY Town Board Bans Fracking for it’s Landowners
June 18, 2012June 18, 2012

Another New York town votes to ban fracking for one year. Not that it makes a hill of beans worth of difference. The town board for Enfield, in Tompkins County, New York, voted last Wednesday to ban fracking:

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Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Statewide NY

Victory for NY Landowners in Chesapeake Force Majeure Case
June 15, 2012June 15, 2012

In a major victory for New York landowners, Attorney General Eric Schniederman’s office reached a settlement with Chesapeake Energy to allow 4,400+ landowners with a collective 264,000 acres to renegotiate old gas drilling leases that Chesapeake was attempting to extend using the “force majeure” clause. MDN has followed this story for more than a year (see this MDN story from May 2011 for history and background).

As a brief background, a number of New York landowners—many of them in the Southern Tier area of New York—signed gas drilling leases in 2000 with small drilling companies. The leases had a 10-year term. Most of the landowners got $3 per acre as a signing bonus. Those leases, along with leases signed prior to 2000, were bought by Chesapeake in the mid-2000s. In 2009, Chesapeake sent letters to New York landowners invoking the force majeure clause, which is legalese for “we’re extending the contract term due to extenuating circumstances, which we believe is our right to do.” The extenuating circumstance? The moratorium on high volume hydraulic fracturing that was implemented by then-Gov. David Paterson in 2008.

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

Dueling Rallies in Albany Over Cuomo’s Fracking Plan
June 15, 2012June 15, 2012

Both anti- and pro-drillers staged rallies in Albany, NY yesterday in response to the leaked plan by the Cuomo administration to allow limited hydraulic fracturing of gas wells in five Southern Tier counties.

Perhaps two dozen anti-drilling protestors showed up outside of Gov. Cuomo’s office for their PR appearance before the cameras. An hour later, they went to stand outside of a much a larger crowd of pro-drillers who staged a press conference featuring five town supervisors who were there to say they want drilling in their townships.

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

NY Gov. Cuomo Speaks Out on Leaked Fracking Plan
June 15, 2012June 15, 2012

Did New York Gov. Andrew Cuomo’s trial balloon plan to allow fracking just burst? Yesterday, the governor was peppered with questions about his unofficially announced plan to allow limited fracking of natural gas wells in five Southern Tier counties and only in communities that want it.

Appearing on an Albany radio program, Gov. Cuomo said:

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Energy Companies | Industrywide Issues | Litigation | New York | Norse Energy | Statewide NY

Norse Says NY Force Majeure Settlement Doesn’t Apply to Them
June 15, 2012June 15, 2012

MDN reported today that New York Attorney General Eric Schneiderman’s office struck a deal with Chesapeake Energy over the issue of extending landowner leases in New York using the “force majeure” clause in the contract (see this MDN story). Norse Energy issued a press release saying essentially that the deal does not apply to them, and their force majeure claims are still in place until overturned by a court.

Here’s the Norse press release:

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Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

NY Chefs Form Group to Oppose Fracking
June 15, 2012June 15, 2012

This is interesting—and odd—news: A bunch of chefs in New York City (where else?) have formed a group to support a ban on the fracking that if it happens, will happen four hours from where they live and work. Why? Uh yeah, good question.

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

Swift Response to Cuomo’s NY Fracking Plan
June 14, 2012June 14, 2012

As MDN predicted yesterday, the initial reaction of anti-drillers in New York that Gov. Cuomo is considering limited fracking in the state has been negative (see this MDN story). They needn’t worry, and once they figure it out, they’ll be happy with Andy’s latest plan because it gives them an excuse to protest and rabble-rouse at town board meetings for the next two years. The fight is going local in New York.

The Albany Times Union hints that Cuomo’s “announcement” of his plans for fracking—which was leaked to the New York Times yesterday—is a trial balloon to gage public reaction to the idea that he would allow drilling in five (MDN calls it the “Lucky Five”) Southern Tier counties of New York for a couple of years to see how it goes.

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Energy Companies | New York | Norse Energy | Statewide NY

Norse Energy: The Little Driller that Could
June 14, 2012June 14, 2012

You have to admire Norse Energy Corp. (subsidiary of the larger Norwegian company of the same name). They rolled the dice by leasing most of their acreage for shale gas drilling in New York State, thinking there was no way it would take this long (now four years) for New York to begin high volume hydraulic fracturing. But it has taken this long, and Norse has tried to stay alive by selling off various assets, reducing staff, restructuring debt and in general doing whatever it takes to “hang in there.”

Just a few weeks ago Norse announced they were shuttering their Buffalo office and heading back to Houston (see this MDN story).

But the plucky Norse, not ready to throw in the towel quite yet, found encouragement in yesterday’s leaked trial balloon announcement that Gov. Andrew Cuomo may begin to allow very limited fracking soon (see this MDN story).

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

The Latest Anti-Drilling Scare Tactic: Radon in Shale Gas
June 14, 2012June 14, 2012

There’s no polite way to say this, so I won’t bother: The nutters are coming out of the woodwork. Damascus Citizens for Sustainability (DCS), NYH2O and 50 “other signatories” have sent a letter to Speaker Quinn of the New York City Council asking the speaker to convene hearings on the issue of radon in natural gas. They are claiming (and this is the nutty part) that Marcellus Shale gas contains radon and that Marcellus gas gets to market so fast the radon doesn’t have time to break down and dissipate. That is, it’s a health risk for New York City residents who use natural gas.

The solution, according to DCS and the others? Don’t use natural gas—at least not the cheap, abundant natural gas that comes from the Marcellus Shale.

Here’s their press release, if you can understand it:

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

Breaking: NY Will Allow Fracking in Select (Few) Locations
June 13, 2012June 13, 2012

Breaking News: The fight over fracking in New York is about to go very local—down to the township level. The New York Times is reporting that Gov. Andrew Cuomo will soon announce a plan that will allow hydraulic fracturing in a few select counties in New York, most of them along or near the border with Pennsylvania. His plan will limit hydraulic fracturing to only those counties AND townships within those counties that actually want drilling—at least for “the next several years.”

Why limit it? To “reduce the risk of groundwater contamination.” And because he’s trying to placate both sides of the fracking debate. His environmentalist supporters are going to abandon him if he doesn’t at least make some moves to appease them.

Fait accompli. The anti-drillers will not view this as a victory, but it is—for them. This plan buys anti-drillers another two years or more to continue agitating and demagoguing the issue of hydraulic fracturing and mount wave after wave of protests at town board meetings. It’s about to be an interesting couple of years for those of us who live in New York and support drilling (not that the past four long years have been boring).

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