Bradford Drilling Sues Partner Norse Energy for No Drilling
Norse Energy Corp, the U.S. subsidiary of the Norwegian energy company, owns leases for 180,000 net acres in New York State, 130,000 of those acres being in the Marcellus and Utica Shale plays. Norse bet the farm on New York allowing shale gas drilling long before now, and they lost (NY is still months, if not years away from allowing shale gas drilling). Norse has put their New York acreage on the auction block, looking for another company to buy it.
In the meantime, one of Norse’s drilling partners is suing them for lack of drilling according to their agreement. That agreement had nothing to do with shale gas, but instead was drilling in the Herkimer formation, a limestone-type layer in central New York. Norse seems to indicate they may restart Herkimer drilling at some point. From the Norse press release:
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Yesterday was an interesting experience for MDN editor Jim Willis, sitting in the NY Department of Environmental Conservation (DEC) hearing in New York City. The hearing was the last to be convened by the DEC to accept public comments on new draft drilling regulations proposed by the DEC that will allow high volume hydraulic fracturing to commence in New York State (ie allow shale gas drilling).
The last two
This week will be important for the effort to get shale gas drilling moving in New York State. The state Department of Environmental Conservation (DEC) is conducting a series of four public hearings nominally to accept comments on the most recent changes to the draft drilling regulations, also known as the SGEIS (Supplemental Generic Environmental Impact Statement). MDN says “nominally” because each of the four events will be used by both those for and against drilling to try and show their side has the most support.
As MDN reported yesterday, the Delaware River Basin Commission (DRBC) is set to vote on new drilling rules to allow limited drilling in the DRBC jurisdiction on Nov. 21 (
The Independent Oil and Gas Association of New York (IOGA NY), after studying the new draft drilling rules issued by the state Department of Environmental Conservation (DEC) wrote a letter to DEC Commissioner Joe Martens and Gov. Andrew Cuomo on September 2 stating that the new rules, as written, are not acceptable if the state wants there to be any shale gas drilling. A copy of the 15-page letter with attachments (31 pages total) was obtained by Gannett News and can be downloaded below.