New York

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    Are the Shale Cuttings Being Dumped at the Chemung County Landfill Radioactive?

    Part of the process of drilling a well includes disposing of the material that comes out of the well, including “cuttings” and mud—i.e., leftover dirt and rock. A “controversy” is brewing in Chemung County, NY where the county landfill is accepting cuttings from drillers over the border in the Pennsylvania Marcellus Shale. The problem? Sometimes shale cuttings have elevated levels of radioactivity. Those opposed to drilling are playing on people’s fear of the word “radioactive” hoping it will shut down the shipments of shale cuttings to the landfill. (Those shipments, by the way, are generating a nice revenue stream for Chemung County.)

    Anyone living in New York’s Southern Tier or Northeast Pennsylvania knows when buying a house you have the basement tested for radon—a naturally occurring radioactive gas that exists in high concentrations in some (not all) locations. Radon comes from the ground. Far below the ground radon gas exists, but also radium and even uranium. Radon and radium are both isotopes of decaying uranium. When you drill one to two miles under the earth, the cuttings that come out may have high concentrations of radioactivity (mostly radium). It’s not a good idea to dump highly radioactive material, naturally occurring or not, in a landfill. No argument on that count. But! What is a “high concentration?” Can it be treated if it is high? And, do cuttings usually have high radioactivity as a general rule?

    There is an easy answer here. Determine what levels are safe, and then test incoming loads of cuttings to be sure they don’t violate that standard. That’s just what Chemung County is in the process of doing. The system works—no one wants a health hazard for current and future generations.

    Read about the cuttings “controversy” here: Elmira Star Gazette (Mar 31) – Questions raised as landfill seeks to increase intake of Marcellus drilling waste

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    Will Gov. Paterson’s Political Troubles Delay Drilling in New York State Until 2011?

    Bloomberg, a left-leaning (anti-drilling) news organization published a story about the seemingly eternal question of “When will drilling begin in New York?” with reasoning that goes like this:

    (A) New York Gov. Paterson is more or less pro-drilling and wants to see it start soon.

    (B) Gov. Paterson has run into political troubles, “probes” of his conduct are ongoing, so he’s decided not to run for re-election. He’s damaged goods.

    (C) The Department of Environmental Conservation, fearing political turmoil and upheaval, and perhaps reprisals, will not go forward with drilling until after the election in November (at the earliest).

    The Bloomberg article gives some background details about drilling in New York State for those who are new to the debate—all of it with an anti-drilling flavor. But some good background details nonetheless. May be worth a read if you’re so inclined:

    Bloomberg (Mar 31) – Gas Drillers’ New York Hopes Fade on Paterson Woes

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    Not All Chenango County, NY Landowners will Benefit from Marcellus Shale Drilling

    The Chenango County (NY) Natural Gas Advisory Committee views drilling in the Marcellus Shale as a reality, not a “far off fantasy” that a recent string of articles in the Binghamton Press & Sun-Bulletin (from neighboring Broome County, NY) seem to indicate. Good for Chenango County. They’re researching and planning, and they will be ready when drilling begins.

    But it seems only the southern parts of Chenango County would be suitable for drilling. Some interesting details (if you’re a landowner in Chenango County) from a recent article:

    As far as Chenango County is concerned, when it comes to exploring the natural gas-rich Marcellus Shale, energy companies won’t be as interested in the northern half of Chenango County because the formation there is much too shallow. Geologists say the Marcellus lies only 2,000 to 3,000 feet deep north of the town lines of Smithville, Oxford and Guilford versus more than 4,000 feet deep below the demarcation.

    Hydraulic fracturing, the controversial technique used to extract natural gas from fissures in organic rich black shale, simply won’t work in formations less than 4,000 feet, and is more likely in depths almost twice that amount.*

    MDN points out that hydraulic fracturing is only controversial because anti-drillers make it so. The practice has been around for years (since the late 1940s). So has horizontal drilling. The “new” thing is combining the two together—but even that has been around for years.

    Landowners in Chenango County will need to figure out if their land is suitable for drilling. Consult with local landowner groups, and with the County Natural Gas Advisory Committee.

    *Norwich Evening Sun (Mar 30) – Planning for Marcellus Shale activity is ‘a reality’

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    Mesa Energy Adds Another New York Heavyweight Politico to Advisory Board

    Mesa Energy, with drilling operations in Western NY, continues to add major firepower from New York’s political class to their advisory board. Previously it was former New York Gov. George Pataki (see this post). Today, Mesa has added former NY State Senator Nicholas Spano to the board. Mr. Spano knows the people, and the system in Albany, and he will no doubt help Mesa navigate the rough regulatory seas once horizontal drilling is approved in New York.

    From the press release on Mesa’s website:

    Dallas, TX – Mesa Energy Holdings, Inc. (the “Company”) (OTCBB: MSEH.OB), an exploration stage oil and gas exploration and production company with a focus on the Marcellus Shale in western New York, announced today that Nicholas A. Spano, former New York Senator, has been named to the Company’s Advisory Board. Senator Spano brings to the Company over 27 yeas of experience as a New York political leader and advocate for New York related matters.

    “We welcome Senator Spano to our Advisory Board," said CEO of Mesa Energy Holdings, Inc., Randy M. Griffin. "With his strong background as a former New York State Senator and Assemblyman, he is a recognized authority in political issues. His support and guidance will be invaluable."

    "I look forward to providing Randy with support and strategic guidance as he commences drilling activities in western New York," said Nicholas A. Spano. "With the Marcellus Shale in our backyard, there are great opportunities for the State to benefit from the Company’s activities. The Company intends to develop and produce natural gas in western New York which can potentially provide the local region with new jobs, tax dollars and a supply of natural gas."

    As New York State Assemblyman (between 1979 and 1986), Mr. Spano served as chief executive of the Office of General Services (OGS), a large State agency that provides a broad range of support services that facilitate the operations of State government and that assist local governments, public authorities, public and private agencies. He ensured OGS provided government and nonprofit agencies with innovative solutions, integrated service, and best value, enabling the State of New York to function optimally.

    In 1986, Mr. Spano was elected to New York State Senate as Senior Assistant Majority Leader. He also held various positions including Chairman of the Senate’s powerful Committee on Investigations and Government Operations; and Chairman of the Committees on Labor, Mental Health and Developmental Disabilities. Senator Spano represented District 35 in the New York State Senate until 2006.

    Since retiring from the New York State Senate in 2006, Senator Spano has maintained his vast network of relationships with New York political and business leaders. Today he serves as president of Empire Strategic Planning, an experienced lobbying and government relations firm specializing in state and local advocacy in New York. He is also an Executive Director of Rand Commercial Services, a full service real estate financial institution with expertise in commercial and investment real estate.

    Senator Spano is a member of the Richmond Children’s Center, Westchester Mental Health Association and Enrico Fermi Educational Foundation. He received a B.A. in Political Science at Iona College in New Rochelle, New York.

    Mesa Energy (Mar 26) – Mesa Energy Holdings, Inc. Names Nicholas A. Spano, Former New York Senator, to the Advisory Board

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    Binghamton Press & Sun-Bulletin Runs Wall-to-Wall Coverage of Marcellus Drilling Debate

    The Sunday, March 28 Binghamton Press & Sun-Bulletin (Broome County, NY) devoted a number of pages to the issue of drilling in the Marcellus Shale. The chief writer for the P&SB on these matters, Tom Wilbur, is anti-drilling, and it shows in his articles. As people on the anti-drilling side of the debate often do, they resort to unsubstantiated “facts” and vague nightmare scenarios. Today’s articles were no exception.

    On the front page we have the following articles:

    Marcellus Shale: Is it safe to drill?
    An abridged (and mostly one-sided) history of the shale gas drilling debate in the Southern Tier region of New York and Northeastern PA. Wilbur identifies some of the issues being debated, with the obligatory mention of Dimock, PA and the the isolated (only?) case of a driller who didn’t follow procedure and methane (not chemicals, but natural gas) migrated into drinking water supplies for 12 families. Dimock is the rallying cry for many who oppose drilling. He ends the article with the vague threat that anti-drillers will tie up the right to drill with legal harassment for as long as they possibly can. I believe him on that one.

    Landowners face fight over NYC watershed
    Politicians in New York City are making political hay out of the prospect of drilling with statements that drilling anywhere in the Catskill watershed area must be prevented at all costs because if the water supply for NYC is contaminated, they would have to install filters costing into the billions. The politicians from NYC want horizontal drilling banned in New York State as a preventative measure. And they’re threatening to tie up drilling with lawsuits. No one wants to pollute the City’s water supply! And no one will. What’s conveniently left out of the story by Wilbur is the fact that there is only one company, Chesapeake Energy, with any leases signed in the watershed, and that’s for 5,000 acres. Oh, and Chesapeake voluntarily said they would not drill in the watershed.

    Read More “Binghamton Press & Sun-Bulletin Runs Wall-to-Wall Coverage of Marcellus Drilling Debate”

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    Mesa Energy Fracking Two Wells in NY, Plans to Drill Additional 80 Vertical Marcellus Shale Wells in Java Field

    As MDN previously reported, Mesa Energy, which owns the Java Field in Wyoming County, NY, is planning to convert two of the 19 gas wells on the property from Medina sandstone wells to Marcellus Shale wells. These are already drilled, vertical wells. We now have more details about what Mesa plans to do with these two wells, and with the Java Field. They are moving aggressively with Marcellus Shale gas using vertical drilling, giving them a head start on other energy companies.

    From a press release by Mesa Energy issued today:

    Mesa Energy Holdings, Inc. (the “Company”), an exploration stage oil and gas exploration and production company with a focus on the Marcellus Shale in western New York has announced that it has begun initial testing in its Java Field natural gas development project in Wyoming County, New York.

    The Company has selected two of its nineteen existing Medina wells for testing of the Marcellus Shale. The two wells selected are approximately three miles apart. The testing process began in December 2009 with an initial round of location maintenance, logging and evaluation and the two wells will be re-completed once the required permits have been approved. The data obtained in December 2009 will be combined with additional data to design a frac program for both wells with these operations expected to be completed in the second quarter of 2010.

    The Company believes that there are multiple stacked pay zones present in the field, including the Medina and Marcellus Shale zones and, possibly, the Utica Shale zone, and that there is also significant potential to enhance the production and lifespan of the existing Medina wells using modern technology.

    The Company recently announced the results of an independent engineering review of its material assets in the Java Field. Based on this review, as modified by the Company to better reflect the actual acreage acquired, the potential gas in place in the Marcellus and associated shales is believed to be in a range from 106 billion cubic feet (BCF) at 50 feet of shale thickness to 425 BCF at 200 feet of shale thickness. Based on these numbers, potential recoverable gas reserves using a 25% recovery factor and 200 feet of shale thickness would be approximately 106 BCF. The Company projects total potential net revenue over the life of the project to be as much as $405 million gross before expenses, or $332 million net of expenses ($151 million at PV 10). These projections are based on a price of $5 per thousand cubic feet (MCF) of gas.

    CEO of Mesa Energy Holdings, Inc., Randy M. Griffin said, “The test results from the first two wells will be an integral part of our evaluation to determine the potential production capability of additional existing wells in the Marcellus Shale. We have already submitted permit applications and expect to receive approval shortly. We will update our shareholders on our progress.”

    The Company believes that, in addition to enhancing its existing 19 wells, it can potentially drill and complete up to 80 new vertical Marcellus Shale wells on the project acreage and that the shales in the Java Field and surrounding area could provide an excellent opportunity to achieve significant daily production rates.

    *Business Wire (Mar 25) – Mesa Energy Holdings, Inc. Announces Initial Testing in the Java Field

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    Three Upstate Landowners on New York City Public Radio Discuss Drilling in the Marcellus

    An interesting radio segment from WNYC Public Radio. Leonard Lopate conducted an interview with three Upstate landowners. From the program description:

    We’ll look into the controversy over drilling for natural gas in Marcellus shale in Upstate New York, and discuss the challenges landowners face when deciding whether to lease their land to gas companies, the role of landowners coalitions, and how public officials are managing the drilling already occurring in their towns. We’ll speak with Mark Dunau, organic farmer from Delaware County; Jim Bays, Supervisor of the Town of Smyrna, in Chenango County; and Abby Tamber, steering committee member of the Central New York Landowners Coalition.*

    While Mr. Dunau is clearly anti-drilling and Mr. Bays is somewhat anti-drilling, Ms. Tamber does a good job of representing local landowner groups and the concerns of landowners. The questions by the host are pretty good, and as far as public radio goes, this is about as fair and balanced as it gets. Overall, a B+ from MDN. Worth listening to as it does discuss some very important issues for landowners. Embedded player below—give it a listen! The segment is 34 minutes in length.

    *WNYC (Mar 23) – The Lenoard Lopate Show

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    Lots of Marcellus Leases Signed in “Shallow” Yates and Schuyler Counties in NY

    At a recent presentation in Penn Yan and Watkins Glen, NY, Tony Ingraffea, professor at Cornell University, and Peter Landre, director of Yates County Cornell Cooperative Extension, said Yates and Schuyler Counties (NY) are not “ideal” for drilling in the Marcellus Shale because the shale deposit in those counties is relatively shallow. Even so, energy companies have signed a number of leases:

    There are currently 1,342 signed gas leases in Yates County, from 2005 to 2009.  Colby Peterson, Yates County Soil and Water Conservation District technician, said the leases make up 20 percent, or 44,076 acres, of the acres in Yates County.

    According to Lloyd Wetherbee, Schuyler County Soil and Water Conservation District technician, there are up to 50,000 acres leased in Schuyler, or 13 percent of the land in the county. Wetherbee said this equals between 1,600 to 1,700 leased parcels.*

    *Dundee The Observer Review (Mar 23) – Marcellus Shale drilling: ‘Not ideal’ here

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    EPA Director of Drinking Water Protection says States are “Doing a Good Job Already” Regulating Hydraulic Fracturing

    Brad Gill, executive director of the Independent Oil & Gas Association of New York, recently responded to an article in The Buffalo News supporting regulation of hydraulic fracturing by the federal Environmental Protection Agency (EPA). Marcellus Drilling News considers the EPA proposal way out of line and a federal power grab that is unwarranted and illegal. Seems that Mr. Gill thinks so too. From his letter to the editor:

    All processes related to natural gas exploration and extraction are regulated by the states which, because of their vast geological differences, can do a more thorough job. The U. S. Environmental Protection Agency would never be able to regulate these processes efficiently or cost-effectively. In fact, Steve Heare, director of EPA’s drinking water protection office, recently said states are “doing a good job already” regulating hydraulic fracturing, adding that there is no evidence that suggests the process contaminates water.*

    Be sure to click through and read the rest of the letter. Great summary of why hydraulic fracturing is safe, and why drilling should move forward now.

    *The Buffalo News (Mar 22) – Brad Gill: Hydraulic fracturing issues are already answered

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    Mesa Energy Using Conventional Vertical Drilling for Two Marcellus Gas Wells in Western NY

    It seems hardly a day doesn’t go by that Marcellus Drilling News doesn’t observe a new press release, interview or other mention of Mesa Energy and their recent drive into gas drilling in Western New York State. The latest is a clever move by Mesa—they’re converting two of 19 gas wells they own in the Java Field from Medina sandstone to Marcellus Shale wells.

    For about 30 years, the 3,235-acre site called Java Field has been home to 19 natural-gas wells, all of them sunk into Medina sandstone. Mesa Energy Holdings recently took ownership of the site, and it has submitted applications to the state Department of Environmental Conservation to convert two of those wells into Marcellus Shale wells.

    The DEC hasn’t issued the permits yet, but has posted a notice saying it intends to.

    Because Mesa is proposing traditional wells, rather than a deep horizontal well that would use hydraulic fracturing, its project can move ahead.*

    What remains to be seen is if the vertical well transformation will yield production levels profitable enough to make it worthwhile.

    *Rochester City Newspaper (Mar 22) – Marcellus Shale’s northern promise

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    Sullivan County, NY Legislature Wants to Ban Marcellus Drilling for Everyone in the County

    Sullivan County, NY landowners have some reason to be concerned. Their county legislature wants a complete moratorium of horizontal gas drilling in the county.

    At a recent meeting, the Sullivan County legislature voted to prevent drilling on county-owned lands. Frankly, “So what?” A ban on county-owned land likely does not make a difference for local landowners still interested in leasing. However, according to news reports:

    “They [the county legislature] want the whole of Sullivan County off limits, via a moratorium.”*

    That is a concern to Sullivan County landowners. It’s likely no more than huff and bluff, however, because New York has “home rule,” meaning if the State allows drilling, and local towns allow it, the county cannot supersede and disallow it.

    Some Sullivan County land is considered part of the New York City watershed area—where the City gets its drinking water from. That complicates matters too.

    MDN will keep an eye on the developing situation in Sullivan County when drilling finally begins in New York State.

    *Mid-Hudson News Network (Mar 19) – Sullivan legislators say ‘no’ to hydrofracking, on county land

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    Former NY Gov. George Pataki Joins Advisory Board of Mesa Energy

    Former New York Gov. George Pataki has joined the advisory board of Mesa Energy Holdings (headquartered in Dallas). Mesa holds leases and has active gas drilling operations in Wyoming County in Western New York State. Gov. Pataki, since leaving office, joined a law firm and started a consulting practice with a focus on environmental and energy issues.

    According to the press release:

    Headquartered in Dallas, TX, Mesa Energy Holdings, Inc. is a growth-oriented, exploration stage oil and gas exploration and production (E&P) company with a definitive focus on growing reserves and net asset value per share, primarily through the development of highly diversified, multi-well developmental and defined-risk exploratory drilling opportunities and the acquisition of solid, long-term existing production with enhancement potential. Although the Company is constantly evaluating opportunities in the nation’s most productive basins, the Company’s primary focus is currently on the Devonian Black (Marcellus) shale in the northern Appalachian Basin in western New York.*

    Never mind the press release gobbledygook. What it means is this: Right now Mesa owns pipelines and active vertical wells in Western NY, but they’re betting big-time that horizontal drilling and hydro fracturing is coming to New York in the not-too-distant future, and they want an ace in the hole when it does. Welcome George.

    *Business Wire (Mar 15) – Mesa Energy Holdings, Inc. Names Former New York Governor George E. Pataki to the Advisory Board

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    Drilling in the PA Marcellus Shale Sets Blistering Pace in 2010, On Course for $7 Billion Investment

    The Philadelphia Inquirer has an excellent roundup of drilling activity in the Marcellus Shale, with a listing of the top 20 active energy companies in the PA Marcellus Shale. Well worth reading and bookmarking!

    The article starts with this:

    So far in 2010, natural gas exploration companies have broken ground on three Marcellus Shale wells in Pennsylvania every day, triple the pace of a year ago.

    The Marcellus Shale Coalition, the industry trade group, estimates that up to 1,750 wells will be drilled this year, up from 763 last year.

    At $4 million a well, that’s a $7 billion investment – not counting land-acquisition costs or royalties on gas produced.*

    New York needs to wake up NOW. Marcellus Shale drilling is here to stay, especially in Pennsylvania. It’s having a huge impact on jobs, investments and taxes. New York could use an extra $7 billion in investment right about now!

    *Philadelphia Inquirer (Mar 14) – Gas Drilling Going Deep

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    Morrisville State College Creating New Program to Train Workers for Marcellus Shale Drilling

    SUNY Morrisville Morrisville State College, part of the State University of New York system and located in Morrisville, NY with a satellite campus in Norwich, NY, is looking to launch a program to train workers for drilling in the Marcellus Shale. According to an article in the Norwich, NY Evening Sun we get this interesting comment:

    Many natural gas industry followers are predicting a June release date for the state’s revised hydrofracking regulations. Energy companies and their suppliers have been waiting in the wings for 18 months for the state Department of Environmental Conservation’s Supplemental Generic Environmental Impact Statement to be released.*

    If and when drilling commences starting in June as predicted:

    [I]f it’s anything like what happened when the Marcellus Shale action began heating up two years ago in neighboring Pennsylvania, there will be hundreds of jobs available at well sites within the first 18 months.*

    Initially, Morrisville is looking to create a 2-year program, with the possibility of extending that into a 4-year program. Let’s hope Morrisville has many students in their program, and that those students will have jobs drilling in the Marcellus when they graduate.

    *Norwich Evening Sun (Mar 10) – Morrisville readies to train natural gas drilling workforce

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    Patriot Water Decides Not to Build Marcellus Wastewater Treatment Plant in Owego, NY

    Last week, Patriot Water LLC withdrew their application to convert a former car dealership on the edge of the Village of Owego, NY (in Tioga County) into a wastewater treatment plant to deal specifically with wastewater from Marcellus Shale drilling in Pennsylvania, and from New York, when drilling finally begins there.

    Each well drilled in the Marcellus will use approximately 3 million gallons of water during the process of hydro fracturing. Much of that water comes back out of the ground and needs to be treated so it can be re-used in drilling. Some of it will be treated and returned to area waterways, which is no different than the local sewage treatment plant. The fluids entering the environment from any wastewater plant must pass rigid tests to ensure no pollution occurs.

    So the news that Patriot Water was planning to build and operate such a plant was good news for the Southern Tier of New York, bringing jobs and tax revenue to Tioga County. But one problem: The proposed site was very close to residential areas. Yes, it is zoned industrial, but it would mean four trucks an hour, 24 hours a day running down residential streets, and local folks didn’t want it. Can’t blame them.

    But! Could Tioga County not have come back with a counter offer? Another location nearby that is not close to residential areas? Was there any kind of effort made at all? It appears not. And so, on March 3, Patriot Water said “no thanks” to Owego and Tioga County.

    MDN recommends Patriot have a look at nearby Broome County, NY. There’s a couple of industrial parks close to Interstates 81 & 86 (NY Route 17) in the Conklin and Kirkwood areas, and those locations have truck traffic all the time. Perhaps the members of the town planning boards in Broome County will actually show up for meetings (unlike the Tioga County Planning Board, five members of whom abrogated their duties by not showing up for a crucial meeting on the Patriot request). Come on over to Broome, Patriot!

    Owego Pennysaver (Mar 3) – Patriot Water, LLC withdraws application for Taylor Road site

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    While Albany Dithers on Marcellus Drilling, Landowner Profits Evaporate

    George Phillips, a Republican candidate for the 22nd Congressional District in New York State, penned a viewpoint article in today’s Binghamton Press & Sun-Bulletin on the topic of drilling in the Marcellus Shale. In short, Mr. Phillips is pro-drilling while the man who currently holds that office, Maurice Hinchey (Democrat) is anti-drilling and supports federal government interference. While the article takes political aim at his opponent, Mr. Phillips makes strong arguments on why drilling should commence—now.

    He closes his article with this:

    But the window of opportunity may be closing. As more areas of the country move forward with plans to develop these types of resources, prices naturally fall as supply increases. This leaves our residents waiting, watching potential profits and opportunities evaporate as others reap these benefits while our government dithers.*

    Ah yes, the dithering officials in Albany. Albany needs to move forward now. Other shale plays are becoming active, and the Pennsylvania Marcellus is red hot. If Albany drags on much longer with their obstruction of drilling, landowners will be the ones who suffer.

    We also hope, along with Mr. Phillips, that the federal government (and Mr. Hinchey) stay out of states’ business.

    *Binghamton Press & Sun Bulletin (Mar 8th) – Clear way for drilling