New York

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    East Resources Sells to Royal Dutch Shell for $4.7 Billion, Deal Includes All of East’s Marcellus Shale Operations

    East Resources, a major drilling company in the Marcellus Shale, especially in Pennsylvania, is selling itself to Royal Dutch Shell for a whopping $4.7 billion. From drilling a single horizontal Marcellus Shale gas well in 2009, East has drilled some 75 horizontal wells in the past 12 months. East did have plans to drill 6,000-7,000 wells in Tioga County, PA over the next “several years” (see this MDN story). No word on the planned drilling for Tioga County and other regions, but MDN assume Shell did not invest in East to not drill. In fact, the pace of drilling may well pick up with Shell’s investment.

    From the East Resources press release:

    East Resources, Inc., a Pennsylvania-based independent oil and gas producer and one of the most active explorers in the Marcellus Shale, along with its private equity investor Kohlberg Kravis Roberts & Company, signed a definitive agreement to sell the company’s principal subsidiaries to an affiliate of Royal Dutch Shell plc (“Shell”) for cash consideration of $4.7 billion. The sale includes East’s natural gas and oil exploration and production operations and most of its holdings in related businesses. With the purchase of East Resources, Shell will acquire approximately 650,000 net acres of Marcellus Shale rights in Pennsylvania, West Virginia and New York, and 1.05 million acres in total.

    East Resources, founded in 1983 by Terrence M. Pegula, has been one of the Appalachian Basin’s most active exploration and production companies for more than 25 years. Since its inception, East has grown primarily through its exploration successes, several strategic acquisitions, and most recently the development of the Marcellus Shale.

    East Resources employs approximately 300 office and field personnel in Pennsylvania, West Virginia, New York and Colorado. Its principal offices are located in Warrendale, PA, Broomfield, CO and Parkersburg, WV. Shell will continue to operate with East’s workforce to ensure continuing success in the growth and development of the reserves it will acquire in the purchase.

    The sale of East Resources to Shell is expected to close in two phases. The first phase of the sale will be completed in mid- to late summer. The second phase of the sale, including the sale of the West Virginia business, will close later this year, pending certain regulatory approvals.

    “The sale of the company to Shell will ensure that the capital needed to develop East’s significant Marcellus Shale holdings will be available,” says Mr. Pegula, East’s owner and Chief Executive Officer. “Shell’s entry into the region should benefit Pennsylvania, West Virginia and New York through significant new capital investment, new jobs and new business opportunities. I am very proud that this transaction has brought Shell into the Appalachian Basin.”

    President of Shell Oil Company, Marvin Odum commented, “East Resources’ management has built an excellent organization which we are pleased to have as we enter the northeast US and specifically the Marcellus Shale play.”*

    *East Resources Press Release (May 28) – East Resources Inc announces sales agreement with Royal Dutch Shell plc

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    Gas Drilling & Compressor Plants in DISH, TX Not Poisoning Local Population

    Since February of this year, Mayor Calvin Tillman from DISH, Texas has visited—several times—the Marcellus Shale regions of New York and Pennsylvania, sponsored by groups like Shaleshock and other anti-drilling organizations. Mayor Tillman claims that his small town in Texas, north of the Dallas-Fort Worth metroplex area, has been contaminated by shale gas drilling. DISH is located in the Barnett Shale deposit. Some of the drilled gas wells are within the city limits, and others sit just outside of town. MDN attended one of Mayor Tillman’s presentations back in February and you can read about my impressions here. It’s a fair statement that Mayor Tillman has been a popular speaker for those opposed to drilling in the Marcellus Shale, drawing sizable crowds.

    One of the claims made by Mayor Tillman in his talks is that either local gas wells, or the compressor plants used to pressurize shale gas for area pipelines, or both is polluting DISH and its citizens. DISH is unusual in that there are 11 large pipelines in the DISH area, far more than normally found in a single location (the most in one area for shale gas that MDN is aware of). Odors are coming from the compressor plants, so it’s certainly not a stretch to think that if you can smell it, it may be polluting or causing harm. That was Mayor Tillman’s suspicion, so he used city funds to conduct environmental testing in the DISH area, and separately another organization performed a health “survey” of current and former DISH residents (for free). Problem is, both the environmental testing and the health survey were flawed in their methodologies, which casts doubt on the findings. So the Texas Department of State Health Services stepped in to do a scientific health study using blood and tissue samples.

    Agency officials collected biological samples from 28 Dish residents in late January to see whether levels of volatile organic compounds (VOCs) in their blood were higher than those in the broader population. “We were looking to see whether a single contaminant or a handful of contaminants were notably elevated in many or all of the people we tested,” said Dr. Carrie Bradford, the toxicologist who led the investigation.*

    And what was the conclusion of the Department of State Health?

    Texas health officials found no connection between pollution from a natural gas compressor station in Dish, Texas and levels of toxins in the blood of people living nearby.*

    The new report from the Department of State Health Services says levels of benzene and other contaminants was no higher in Dish residents than in the nation’s population in general.**

    MDN wonders if the now less than credible Mayor Tillman will still be such a large draw when he comes calling again?

    *Elimra Star-Gazette (May 26) – Texas gas study finds no pattern of elevated toxins near compressor
    **Dallas Fort Worth – Channel 33 News (May 12) – DISH Report: No evidence gas well hurting residents of Dish, Texas

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    Steuben County, NY May Accept Marcellus Drill Cuttings in County Landfill

    Like neighboring Chemung County, NY, officials in Steuben County, NY are actively considering accepting Marcellus drill cuttings (leftover dirt and rock from drilling gas wells) in the county landfill. Drillers over the border in Pennsylvania are looking for a location to dump the cuttings. The debate over whether to accept drill cuttings always centers on whether there is radioactivity in the cuttings and if it will become a problem down the road when liquids leach from the landfill into groundwater supplies. Chemung County has done extensive research and finds the radioactivity levels to be very low—and safe. Chemung County currently accepts drill cuttings, and now Steuben County is considering it too.

    “Right now, we’re just talking about relatively small amounts we would bring in, if we brought it in. We want to be sure of ourselves though,” said Steuben County public works commissioner Vince Spagnoletti.*

    As with Chemung County, economics is driving the decision for Steuben County as well:

    Spagnoletti says bringing in around 10,000 tons per year of the drill cuttings could raise around $300,000 to the operational budget of the landfill.*

    That’s a potential $300,000 that taxpayers would not have to pony up.

    *YNN Your News Now (May 11) – Steuben County may allow Marcellus shale debris to be dumped in landfill

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    Mesa Energy is Using Hydraulic Fracturing on Two Wells in Western New York – Right Now

    From the “continues to be interesting” department: Mesa Energy, new owner of the Java Field in Western New York State, has started hydraulic fracturing of two Marcellus Shale wells in the Java Field. Yes, you read that right. Fracking is happening NOW. In New York State. The catch? They’re both vertical wells. Since fracking horizontally drilled wells is still on hold in New York, Mesa can’t drill horizontally. But they have received permission from the New York Department of Environmental Conservation to frack vertically on two of their wells—and they are doing it.

    Mesa press release issued today:

    DALLAS—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, provides an update on its re-completion of the Reisdorf Unit #1 well in its Java Field prospect located in Wyoming County, New York.

    The Reisdorf Unit #1 in the northern portion of the Java Field has been successfully re-completed and fracked in the Marcellus Shale. The well was perforated at a depth of 1,368’ to 1,389’ and fracked with 74,000 gallons of slick water and 105,000 lbs. of proppant (sand) combined with Nitrogen assist. Flow-back of the frac water is continuing according to plan. Although there is not yet sufficient data to accurately quantify the gas flow, there is clear indication of strong gas presence in the Marcellus zone. Planning for the re-completion and fracking of the Ludwig #1 is underway.

    “We are very encouraged by the early data and believe that the performance of the well to date clearly supports our ongoing efforts in the Marcellus Shale,” said Randy M. Griffin, CEO of Mesa Energy Holdings, Inc. “We will continue to provide updates as new information warrants.”*

    *Mesa Press Release/Business Wire (May 12) – Mesa Energy Holdings, Inc. Provides Reisdorf Unit #1 Update

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    Members of Landowner Group in Broome County, NY Receive First Payment for Lease Deal

    Stop the press: There’s actually been some GOOD news from New York State on the drilling front. Inflection Energy has just issued payments to some 130 residents in the Town of Maine (Broome County, NY) to secure drilling rights to their land, when/if drilling ever begins in New York State.

    The deal, announced in February, calls for $6,000 per acre over eight years. About 130 residents with more than 3,000 acres have begun receiving checks for the first year’s payment of $1,000 per acre, said Robert Wedlake, a lawyer with Hinman, Howard & Kattell representing the group, called the South Maine Millennium Coalition.

    The Inflection deal calls for 20 percent royalties “subject to certain deductions,” according to a press release from Wedlake and Inflection.*

    *Binghamton Press & Sun-Bulletin (May 9) – Town of Maine residents getting $3 million for gas rights

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    NY Congressman Michael Arcuri Talks Out Both Sides of His Mouth on Drilling in the Marcellus

    Upstate New York Congressman Michael Arcuri says the BP oil disaster in the Gulf of Mexico means we should slow down (or perhaps not even start) drilling in the Marcellus Shale. Yes folks, we don’t make this stuff up! An oil drilling accident off-shore now equates with hydraulic fracturing of shale for natural gas. Go figure.

    Mr. Arcuri’s press release below, taken verbatim from his website, is a classic example of a politician talking out of both sides of his mouth:

    WASHINGTON, DC – U.S. Rep. Michael A. Arcuri (NY-24) issued the following statement renewing his call for a cautious approach to natural gas drilling in Upstate New York in light of the BP oil spill in the Gulf of Mexico:

    “The BP oil spill in the Gulf of Mexico demonstrates how vital it is for us to proceed with the utmost caution when considering natural gas drilling in Upstate New York.  While I support measures to open up energy reserves here at home and create new job opportunities for Upstate families, I also believe that we must carefully examine the potential outcome that natural gas drilling may have on the health of surrounding homes and communities.  Natural gas is a tremendous natural resource with great economic potential, but we must move forward in a way that protects an even more precious natural resource – our abundant supply of clean drinking water.

    “New York’s natural gas reserves are not declining in value as they wait to be developed, and methods become safer and more efficient as companies adapt techniques. But, as we have seen in the Gulf of Mexico, we cannot assume a spill will not happen or become careless in protecting the environment because one mistake could be devastating.

    “With so many residents who live in rural areas relying completely on well water, we cannot afford to sacrifice the purity of our water by rushing to drill.

    “It is my hope that this disaster serves as a reminder to us all just how high the stakes are and that we must take every precaution possible to ensure that a rush to drill the Marcellus Shale does not irreparably contaminate our water.”

    *Press Release (May 4) – Arcuri Renews Call for Cautious Approach to Natural Gas Drilling in Upstate New York in Light of Gulf of Mexico Oil Spill

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    More Delay Tactics, Elected Officials in NY Actively Oppose Drilling in the Marcellus Shale

    New York State’s future with drilling in the Marcellus Shale continues to be cloudy at best. While MDN believes drilling should start—now—hoping and wishing will not make it happen and New York landowners have to face the cold, hard reality it may not happen until summer 2011 at the very earliest (if indeed it ever happens). Now that the NY Department of Environmental Conservation is proposing two sets of rules for drilling—one for the New York City and Syracuse watershed areas, the other for everyone else—anti-drillers are using it as a wedge issue.

    Must be fun being an anti-drilling person in NY. First, you say over and over and over again that drilling in the Marcellus in the watershed may contaminate New York City’s water supply. And so, when finally the DEC throws up its hands and says, “OK, we’ll take drilling in the watershed off the table,” the new argument becomes, “See! See! If it’s not safe for the watershed, it’s not safe anywhere!” Gotta love that twisted logic. Point of fact: Hydraulic fracturing is safe everywhere, including the watersheds.

    Here’s some of the latest opposition to drilling from New York’s elected leaders:

    Assemblyman Kevin Cahill, D-Kingston, chairman of the Assembly’s Energy Committee, and Assemblywoman Barbara Lifton, D-Ithaca, are preparing legislation that will require the same drilling regulations for all state watersheds, including the Delaware.

    Assemblywoman Aileen Gunther, D-Forestburgh, recently co-sponsored a bill calling for a moratorium on drilling at least until a federal study on the impact of “fracking” on drinking water is complete — in about two years.

    And on Friday, Rep. Maurice Hinchey, D-Hurley, called on the Delaware Basin Commission, which approves withdrawals of Delaware River water used for “fracking,” to conduct an environmental impact study on the cumulative effects of those withdrawals before it considers any applications.*

    So, let’s recite the playbook: Claim it’s not safe. Claim it pollutes water supplies. And when all else fails, call for “let’s go slow and do more studies” and try to delay drilling for at least 2-3 more years to give the anti-drilling forces time to solidify opposition and completely kill it forever.

    And lest PA thinks they’re clear of all this, you’re not. The Delaware River Basic Commission has effectively blocked drilling in the Delaware River watershed for now. And your own U.S. Senator, Bob Casey, is asking the U.S. Environmental Protection Agency to get involved in the situation in Dimock, PA.

    *Middletown Times Herald-Record (May 2) – Legislators want drilling rules fairly crafted

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    NY DEC Message to Landowners in New York’s Watersheds: Forget About Drilling

    These are the bald facts of life for New York landowners who own land in either the New York City or Syracuse watershed areas and may want to lease their land for Marcellus Shale gas drilling: Forget it. That’s the loud and clear message from NY Department of Environmental Conservation (DEC) Commissioner Pete Grannis. After the DEC’s announcement of last week, no energy company in their right mind will be willing to drill in New York’s watersheds (although drilling companies currently drill safely in the Susquehanna River watershed in PA, and are trying to drill in the Delaware River watershed in PA).

    Reaction from landowners in New York has been mixed. While some believe watershed landowners are being unfairly penalized, others think this may speed up the process of drilling for everyone else by removing a key objection to drilling—that drilling may contaminate city water supplies.

    From a press release issued by the NY DEC last week:

    April 23 – New York State Department of Environmental Conservation (DEC) Commissioner Pete Grannis today announced that due to the unique issues related to the protection of New York City and Syracuse drinking water supplies, these watersheds will be excluded from the pending generic environmental review process for natural gas drilling using high-volume horizontal drilling in the Marcellus shale formation. Instead, applications to drill in these watersheds will require a case-by-case environmental review process to establish whether appropriate measures to mitigate potential impacts can be developed. There are 58 pending applications for horizontal drilling in the Marcellus shale; no applications are located in either the New York City or the Skaneateles Lake watersheds (Syracuse utilizes the Skaneateles watershed).

    Read More “NY DEC Message to Landowners in New York’s Watersheds: Forget About Drilling”

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    Joint Landowner’s Coalition of NY Makes Appeal to Landowners

    The Joint Landowner’s Coalition of NY has put out a plea for donations. Drilling in New York may not happen unless landowners can generate enough noise to break through the resistance in Albany. Here is the letter reproduced in full from the JLCNY:

    A Message from the JLCNY President Dan Fitzsimmons – April 27, 2010

    Fellow Landowners – I don’t have to tell you we have much at stake.  But I do need to sound an alarm:  the time for us to act is NOW.  We are organized.  We are prepared.  And although we have worked intensely over the last two plus years, we are outmanned, outspent, outmaneuvered.  We need to step up our game, and we have a plan to get it done.  But we desperately need your financial support.  Some of you have given generously financially.  Some of you have poured blood, sweat and tears into this effort.  And some of you will make your first donation right now.  We need as much as you can afford to give to fund our efforts to:

    • Hire professionals in Albany who can represent us and make sure our voices are not drowned out by the better-funded extremists.  These professionals can open doors, cut through clutter and red-tape for us and focus us on the most effective strategy for being heard where it counts.

    • Get the word out:  you’ve heard the same arguments I hear:  more people are against drilling than are for it.  We know that’s not true – but we have to erase that perception.  The best way to do that is to blanket our area with lawn signs, drown our airwaves with pro-drilling ads, promote speakers at public forums who can support our issues with facts, erect billboards with clear messages, etc.

    • Continue to support landowners.  In some respect, the work begins when the moratorium is lifted and leases are signed.  Who will advocate for landowners in their negotiations and relations with energy companies?  Who will be a watchdog with the regulatory agencies?  Who will make sure we have the best and latest information on and about the industry and the technology surrounding us?  Landowners will need the JLC more and more as time goes by and as the stakes continue to rise. We cannot sustain it without your support.

    We are seeking support from a number of channels:  from corporations and industry; from foundations and other organizations who may provide grants for our work; from local business and farm organizations.  But the most important support we need RIGHT NOW is from you.  Please give what you can today – $10, $20, $100, $500 or more.  See if your company has a matching donation program – or if you know of any other source you can approach for us – please do.  Use PAYPAL on our website: JLCNY.org or send a check to:

    PO Box 2839
    Binghamton, NY 13902

    Thank you from the bottom of my heart.  We will get there, but only if we stay together on this.

    Dan Fitzsimmons
    President JLCNY

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    Bad News for NY Landowners: DEC Says Drilling Won’t Begin Until Mid-2011

    NY DEC Comm. Pete Grannis MDN does not want to depress and demoralize the good citizen landowners (and drillers) of New York State, but we must share some disheartening news. It seems comments made today by New York Department of Environmental Conservation (DEC) Commissioner Pete Grannis, the man who heads the very agency working on new rules for drilling in New York, indicate drilling in New York State will not begin until spring or summer 2011.

    As part of an Earth Day speech at Onondaga Lake near Syracuse, Grannis made some revealing comments:

    Grannis predicted the DEC will finish drafting regulations that companies will have to follow to receive drilling permits by fall. He said he expects drilling to begin by spring or summer 2011.*

    Why is it bad for landowners and drillers? The longer we go without drilling, the more likely it simply won’t happen at all—ever. In addition, every month that passes with no drilling in New York means thousands of more jobs permanently relocated to other states in the Marcellus Shale, including Pennsylvania and West Virginia, where drilling is already happening. Once drilling companies decide on where to locate their headquarters and branch offices, and once other businesses like wastewater treatment plants and trucking firms get established, they almost never relocate. If those jobs and capital investments go to PA and WV, New York will never see them. A real shame.

    Finally, waiting until 2011 is bad because it means the next governor of New York, likely Andrew Cuomo, will have to sign off before drilling can begin. If Cuomo is elected, it’s not at all clear whether he would be favorable to drilling. In fact, it is likely he will be opposed.

    There’s still time. Landowners and concerned citizens who recognize just how important this is to New York’s future need to make their voices heard loud and clear to their elected representatives—and people like Cuomo need to understand elections may very well hinge on how they come down on the drilling debate.

    It’s time to turn up the heat on the DEC—they’ve had long enough. They are intentionally delaying and stalling for political reasons—not safety reasons.

    *Syracuse Post-Standard (Apr 20) – Environmental Conservation Commissioner Pete Grannis says hydrofracking likely to begin in New York in spring or summer 2011

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    NY Marcellus Shale Drilling Regulations Ready by Fall 2010?

    When will the new Marcellus shale drilling regulations be ready in New York State? That’s the multi-million dollar question for both energy companies and landowners. Pro-drilling groups are pushing for the new regs to be released by early summer, but the New York Department of Environmental Conservation (DEC), the agency tasked with rewriting the regulations, is now making noise about “late summer or early fall.”

    Department of Environmental Conservation Commissioner Alexander “Pete” Grannis, speaking to the state Business Council on Thursday, said the Supplemental Generic Environmental Impact Statement (SGEIS) could be finalized by late summer or early fall, according to media reports.

    The reports also indicated drilling permits could be issued by the end of the year.*

    According to Richard Downey, a landowner and member of the Unatego Area Landowners Association:

    “This is the first time he’s [Grannis] said it and I tend to believe him,” Downey said. “My own opinion is the man has always kept his word and his own schedule.”*

    *Oneonta Daily Star (Apr 19) – Drilling regs could be final by fall

    Also see: Binghamton Press & Sun-Bulletin (Apr 15) – N.Y. review of Marcellus hits snags

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    Radiation Testing Shows Marcellus Shale Drill Cuttings are Safe for Chemung County, NY Landfill

    Chemung County, NY officials have released a report they commissioned from an independent certified health physicist that show levels of radiation in the Marcellus Shale drill cuttings coming from Pennsylvania Marcellus drilling operations to the Chemung County landfill are “well below” U.S. Environmental Protection Agency standards for radiation.

    The gist of the report is that the soil that the county landfill would accept from Marcellus Shale drilling poses no health threat from radiation, said County Executive Tom Santulli.

    “These people are experts. They made it very clear that this material is less radioactive than the countertops in our houses and soil in our gardens,” Santulli said. “My message is simple—this stuff is not toxic. It’s no more radioactive than the soil in your garden and bricks on your house. All this testing verifies that. This is way below any EPA levels.

    “This would be equivalent to taking dirt from your backyard and using it in landfill,” he said. “It can be used for cover. It’s that safe.”*

    However, the debate still rages. Those opposed to drilling claim there is a significant threat to human health from the drill cuttings. County Executive Santulli says those opposed “have zero credibility” on the matter with no facts to back up their claims.

    For more information on both positions, see the full article in the Star-Gazette.

    *Elmira Star-Gazette (Apr 11) – County study says soil from gas drilling is safe

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    Watertown, NY Votes to Accept Shale Wastewater in City’s Water Treatment Plant

    The City of Watertown, NY has voted to continue accepting wastewater (flowback) from hydraulic fracturing—but it’s not wastewater from the Marcellus Shale. This wastewater comes from a driller in Central New York—Gastem—who is drilling Utica Shale gas wells using hydraulic fracturing. Utica Shale is much deeper than Marcellus Shale and uses much less water to frack the well because it is vertical and not horizontal as it would be with a Marcellus well.

    The city’s water treatment plant accepted 35,000 gallons of wastewater from Gastem last summer and discharged the treated water into the Black River. Gastem wants the city to treat an additional 80,000 gallons this summer.*

    The volume of wastewater being treated in Watertown is miniscule compared to what is generated from a Marcellus well. But it is interesting that the city council has decided there is no hazard for the citizens of Watertown from treated frack fluids.

    *CNYcentral.com (Apr 7) – Watertown to dispose of gas well fracking fluid

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    Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY

    Ingraffea_Anthony Nearly one week ago, on March 31, MDN attended the kickoff meeting of New York Residents Against Drilling (NYRAD) at the Vestal Public Library in Broome County, NY. No, MDN is not anti-drilling! We attend to listen and learn. The drilling debate is increasingly political in tone. Those of us who support drilling need to listen to those in our communities who oppose it—as a courtesy, to be sure we have not missed important information that informs our own opinions, and so we understand our opponents’ arguments in this debate—to be able to intelligently respond to their (often inaccurate and overhyped) accusations.

    The meeting room at the Vestal Public Library was filled to capacity for the meeting with about 120 people attending. Local news media was there, as well as cameras from (presumably) NYRAD themselves. MDN observation: As was the case when DISH, TX Mayor Calvin Tillman recently visited, there were a number of balding men with gray-haired ponytails in the audience. MDN continues to posit the theory that many 60s hippies have found a new cause célèbre that now energizes them—gas drilling.

    The meeting was opened by a NYRAD official who introduced the evening’s main speaker, Professor Anthony Ingraffea. Dr. Ingraffea is a professor of civil and environmental engineering at Cornell University. His Ph.D. is in rock fracturing mechanics. He has done twenty years of research on hydraulic fracturing for companies like Schlumberger, Exxon and the Gas Research Institute. If anyone knows how rock fracturing works, it is Dr. Ingraffea. I eagerly anticipated what he would say about hydraulic fracturing and whether or not the process contaminates water supplies, a commonly leveled charge by drilling opponents.

    Dr. Ingraffea is an accomplished speaker. He is equal parts comedian and expert, and he knows how to “work a crowd.” I can easily imagine that he’s a favorite professor at Cornell, one whose classes fill quickly. In his opening remarks he admitted he feels passionately about the issue of drilling in New York State, and that he is opposed to it. He opened his talk with a technique often employed by those who are anti-drilling. He mentioned he loves fishing for trout in New York’s streams and he asked the audience a question: “Would you like to keep fishing in New York State?” The implication is that if drilling begins, trout fishing is finished. It’s a non sequitur—a statement that does not follow from the premise. In the course of his presentation he never once connected any dots that drilling activity would lead to poisoning of streams and the end of trout fishing. This was a tip-off that the evening might disappointingly hold more emotional statements rather than factual statements. Unfortunately, that’s exactly how it turned out.

    Read More “Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY”

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    Mesa Energy Adds Downstater from NYC Dept. of Environmental Protection to Advisory Board

    Mesa Energy keeps up the pace with the addition of former Deputy Commissioner of the New York City Department of Environmental Protection Robert Avaltroni. It certainly can’t hurt to have a downstater in your corner for the nasty fight that’s brewing over Marcellus drilling. New York City wants it banned statewide period, and City politicians regularly make noise about it. With former Gov. George Pataki (rumored to be considering a run for the NY Senate as well as a run for president), and with former New York State Senator Nicholas A. Spano, the addition of Mr. Avaltroni makes a truly formidable and influential group on Mesa’s advisory board.

    From the Mesa Energy press release:

    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, announced today the appointment of Robert C. Avaltroni to the Company’s Advisory Board. Mr. Avaltroni has over 23 years of experience in addressing political and environmental issues in New York, thirteen of which were spent as Deputy Commissioner of the New York City Department of Environmental Protection.

    “Robert is a great addition to our Advisory Board and rounds off a seasoned group of advisors,” said CEO of Mesa Energy Holdings, Inc., Randy M. Griffin. “His knowledge and experience regarding environmental issues as well as his longstanding relationships and extensive experience in New York city and state government will provide the Company with valuable insight and guidance as we move forward with the development of our Marcellus Shale projects in New York.”

    “It is an honor to join such an astute group of directors and Advisory Board members,” said Mr. Avaltroni. “Randy has assembled an outstanding team and has my full support as we endeavor to lead the way toward environmentally friendly development of natural gas resources in western New York. New York has a tremendous opportunity to capitalize on the economic benefits that the Marcellus Shale brings, and I expect Mesa to be at the forefront of that effort.”

    Robert C. Avaltroni was New York Deputy Commissioner of the Department of Environmental Protection (“DEP”) for 13 years. He was responsible for directing all environmental, chemical, biological and radiological initiatives in conjunction with the NYPD Counterterrorism/Intel Division, Dept. of Homeland Security, the Joint Terrorism Task Force, Federal Bureau of Investigation, Office of Emergency Management, and the Dept. of Energy. He was granted the highest security clearance “Q Clearance” in the United States. Mr. Avaltroni was New York Mayor’s “point person” with the White House and Senator Hillary Clinton, regarding the establishment of a 9/11 EPA led clean-up committee known as the “Blue Ribbon Panel of Experts”.

    Mr. Avaltroni enhanced DEP’s hazardous materials response capabilities as a model for the nation. In this capacity, the Division of Emergency Response and Technical Assessment became the premier response team for chemical, biological and radiological threats. He also addressed prior longstanding environmental issues resulting in a positive dialogue with environmental advocates and community groups in New York.

    In addition to being Deputy Commissioner of the DEP, Mr. Avaltroni was also First Deputy Commissioner for the New York City Sheriff’s Department, Chairman and Managing Director of Empire Commercial Services L.P. and Chief of Staff for the NYC Sheriff’s Department. Today, Mr. Avaltroni represents various entities including the Environmental Contractors Association of New York as Advisor/Consultant.*

    *Business Wire (Apr 6) – Mesa Energy Holdings, Inc. Appoints Robert C. Avaltroni, Former DEP Deputy Commissioner, to the Advisory Board

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    Mesa Energy Gets NY DEC Approval to Convert Two Existing Medina Wells into Marcellus Wells

    Mesa Energy has received a green light from the NY Department of Environmental Conservation to convert two vertical wells in Western New York from Medina gas to Marcellus gas. We also learn from the press release that the Marcellus Shale layer in the Java Field owned and operated by Mesa is about 200 feet thick across the entire area—much larger than originally thought.

    Mesa Energy press release:

    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 today announced that the Company has received permits from the NY Department of Environmental Conservation to move forward with its re-completion plans on two existing Medina wells in its Java Field natural gas development project in Wyoming County, New York.

    “An initial round of location maintenance, through-casing logging and evaluation was completed on the two wells in December 2009, and now that we have our permits in place, we can begin the next phase,” said CEO of Mesa Energy Holdings, Inc., Randy M. Griffin. “The preliminary data obtained in December 2009 on both wells clearly supports our project in the Java Field and now that we have received permits, we can proceed with the final planning and execution of the re-completion of both wells.”

    The through-casing logs that were run in December 2009 indicated that there is nearly 200 ft. of high quality shale with good organic content in the Marcellus zone; nearly twice as much as the Company initially anticipated. The two wells are approximately three miles apart and the log over the Marcellus zone in each is almost indistinguishable from the other. This indicates that the Marcellus zone appears to be evenly distributed across the acreage.

    *Press Release (Apr 1) – Mesa Energy Holdings, Inc. Receives Permit Approval