Pennsylvania

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Are CSSD’s Standards Really Needed? Comparison with PA/OH/WV/Feds
January 22, 2014January 22, 2014

The Center for Sustainable Shale Development (CSSD) has a big hurdle to leap–convincing drillers to spend a lot of money and time (up to $50,000 and hundreds of hours) to become CSSD certified–and then ongoing monitoring to keep that certification. They’re using a carrot and stick. The carrot is that if you become certified, you’re elite, you’re “in”, you’re special–and landowners will be able to trust you. You’ll have the “Goodhouskeeping seal of approval” on your drilling because you’ve got the cert. The stick is that if you don’t get certified, you’re suspect, you’re in the “out” crowd, you’re not “one of us” and therefore landowners should be wary of signing a lease to have you drill on their property.

Beyond the perceptions, the real question is whether or not the standards themselves will achieve what they say they will achieve–safer and “sustainable” drilling that does a minimum amount of damage to the environment while retrieving low-cost, more efficient and better for the environment natural gas. But wait (you may ask), don’t the states and even the feds already have a bookshelf full of standards and regulations drillers must follow? Indeed they do. The CSSD says, in essence, those standards are fine, but our (CSSD) standards are far better. The crux of the CSSD argument is that you should voluntarily (with peer pressure and cajoling) follow our standards because we have PA, OH, WV and even the feds beat on how strict and yummy good for the environment our standards are over theirs. In fact, the CSSD has produced a chart (embedded below) to “prove” it…
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Chevron | CONSOL Energy | Energy Companies | EQT Corp | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Shell | Statewide PA

Center for Sustainable Shale Comes Roaring Back (to Life)
January 21, 2014

Finally, signs of life from the Center for Sustainable Shale Development (CSSD), a new independent certification organization for Marcellus Shale drillers launched with much fanfare in March of last year. Both drillers and environmentalist organizations, along with non-profits like the mostly anti-drilling Heinz Endowments, cooperated to develop a set of 15 standards drillers should meet to receive the CSSD’s official stamp of approval (see Important: Drillers & Enviros Form New Group, Launch Cert Program for MDN’s mixed feelings about the organization and its standards). Heinz Endowments president Bobby Vagt lost his job for promoting the CSSD (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?).

Since launching, aside from the Vagt/Heinz flap, all has been quiet with the CSSD. However, the CSSD was busy working behind the scenes. From the beginning, Andrew Place, corporate director of energy and environmental policy for EQT has served as interim director of the CSSD. News reports are now coming fast and furious. First, environmentalist lawyer Susan LeGros from Philadelphia has been named the director of the CSSD. She’ll be making a move to Pittsburgh where CSSD HQ is located. Second, Bureau Veritas (BV) has been selected as the company to audit/evaluate companies that want to spend the $30-$100K required to become certified. After they evaluate, a 3-member panel will decide on whether they get the stamp of approval. Two of those three people are Christy Todd Whitman, former governor of NJ and former EPA chief, and former Treasury Secretary Paul O’Neill. Third, it appears to MDN that no one else has joined the CSSD beyond the initial handful of signups (Shell, EQT, Chevron, CONSOL Energy), and that no one has sought certification–although that may change now that the cert process is up and running…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

PA Resident Snaps 8,000 Pictures of Cabot Well Construction
January 21, 2014January 21, 2014

MDN editor Jim Willis received an excited phone call from Susquehanna County, PA resident Janice Gavern after being pointed in our direction by Cabot Oil & Gas. Janice, who runs a goat farm with her daughter near Montrose, PA (and a cancer survivor) started a project a few years back to document the drilling of a shale well on her friend’s property. As Janice says, after she visited the site, just to “keep an eye on things” and snapped her first picture, she was hooked. And the rest, including some 8,000 pictures taken with Janice’s little digital camera, is history. At least that’s what Janice hopes.

Janice’s aim in doing a photo documentary of the drilling process is to preserve an important bit of Susquehanna County history, for future generations. Janice has selected 650 of the 8,000 pictures and compiled them into an e-book on Amazon–the first e-book of a series she’s planning. The first batch cover site preparation and building the well pad–up to the point when the drill arrives. She’s done a fabulous job, and we’re happy to help her make it known to the world. In fact, although the e-book normally retails for $9.99, you can order it FREE today and then again on Feb. 1. We recommend you head on over and download it right now. Here’s a bit more of Janice’s story as told by the Scranton Times-Tribune…
Read More “PA Resident Snaps 8,000 Pictures of Cabot Well Construction”
Air Quality | Allegheny County | CONSOL Energy | Energy Companies | Industrywide Issues | Pennsylvania | Research

Allegheny County Health Dept to Monitor Air Near PIT Airport
January 21, 2014January 21, 2014

Here’s a good idea that everyone can embrace: Measure air quality both before and after drilling near a local drill site. In this case, it’s not just any drill site–it’s the 9,000 acres surrounding the Pittsburgh Airport where CONSOL Energy is now ramping up to drill 47 Marcellus Shale wells on 6 well pads and install 17 miles of gathering pipelines (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). The Allegheny County Health Department announced they will conduct an air quality study at the airport before and after drilling.

What will they find? (It’s always fun to speculate!) We suspect…not much. Oh, there may be a temporary increase in some undesirable pollutants in the air from truck traffic (if they use diesel, increasingly natgas trucks are being used). However, since CONSOL will use electric motors to do all of the drilling and fracking at the airport property, most of the air pollution problems that come from drilling will be nonexistent (see CONSOL to Use Electric Motors for Drilling at Pittsburgh Airport). MDN will keep an eye on this interesting story. Here’s the article that talks about the Health Department’s plan to monitor air quality near the airport:
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Crime | Industrywide Issues | Pennsylvania | Statewide PA | Washington County

Warning: Marcellus Welders in PA Targets of Copper/Tool Theft
January 21, 2014January 21, 2014

Welders in the Marcellus Shale should be on the lookout–especially in western PA. There’s been a recent rash of thefts of welder’s tools and supplies–particularly copper welding cable. The thieves are bold–really bold. Sometimes a welding truck is targeted for theft while the guys are inside a restaurant having lunch!

Here’s the sad, and maddening, story:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

“Enviro” Groups: Keep Acid Mine Drainage So Drillers Can’t Use It
January 20, 2014January 20, 2014

Get this: Environmentalists (like those at PennEnvironment) hate fossil fuels from shale drilling so much, they would rather have millions of gallons of acid mine drainage pour into creeks and rivers in PA every day rather than let shale drillers use that drainage as a fracking fluid–thereby freeing up fresh water sources and solving one of the state’s most pernicious long-term pollution problems. Anti-drillers can’t stand the idea that drillers might, in any way, be perceived as helping the environment. Talk about selfish pigs.

The residents in PA should be outraged at the 35 groups listed below, including PennEnvironment, that sent a letter last Thursday to political leaders asking them to abandon support for one of the best ideas to roll around in generations–cleaning up acid mine drainage by using it as a fracking fluid…
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Beaver County | Braskem | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell | West Virginia | Wood County

WV Cracker Plant has Already Purchased Land for Future Site
January 20, 2014January 20, 2014

In November, WV Gov. Earl Ray Tomblin announced he finally had him a cracker (see WV Announces Brazilian Company to Build Ethane Cracker Complex). By Dec. 31, Odebrecht, the company that will build the ethane cracker, had purchased the future site for their proposed plant in Wood County, WV through a holding company–for $10.9 million. A chemical plant currently located on the site employing 130 people will close in 2015. But have no fear–when the cracker plant is built, it will (for a time) employ 10,000 people to build it. It’s a massive undertaking that will ultimately lead to an estimated $7 billion economic injection just for the state of West Virginia. Talk about an economic revolution!

Compare WV’s proposed cracker to the Pennsylvania proposed cracker plant. Shell announced their intention to build a PA cracker plant in June 2011. How long did it take Shell to purchase the property on which they plan to build their cracker plant? They still haven’t purchased it. Let’s see: under 2 months to purchase the property for the WV cracker, still no purchase after 2 1/2 years for the PA cracker. Which one do you think is serious about building, and which one will get built first?…
Read More “WV Cracker Plant has Already Purchased Land for Future Site”
Allegheny County | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania

Heinz Spent $3.3M in 2013 on Anti-Drilling Research/Activities
January 20, 2014January 20, 2014

It now becomes crystal-clear (as if there were ever any doubt) about why the Heinz Endowments, under the direction of Teresa Heinz Kerry, fired its president Bobby Vagt and a couple of other senior members of the Endowments team: Heinz herself is through and through anti-drilling. Attempting to spread a thin veneer of euphemistic language, the Heinz Endowments admits that last year they provided $3.3 million of their considerable warchest to support anti-drilling organizations and causes. Oh, they don’t call it that, but that’s exactly what it is: Every single “cause” they funded took aim at shale drilling–to stop it, not make it better. With people like the Heinz’s there is no attempting a reasoned, considered “how can we improve this” approach. Instead, it’s a “how do we eliminate these evil, nasty drillers–eradicate them from the face of the earth” approach.

Some of the recipients of Teresa’s largess last year include anti-drilling “studies” at Ivy League schools like Yale, Harvard and Cornell, and anti-drilling “activities” at non-profits like FracTracker Alliance. Contrast that with the tiny bit of money Vagt tried to spend to help create the very strict (too strict in our opinion) Center for Sustainable Shale Development–an alliance between drillers and environmental groups–getting both sides to the table and to agree. That one made mamma Teresa really mad, so Bobby had to go bye bye. We can’t have any talk of a “third way” and cooperation in shale exploration. It’s “no way” for the Heinz clan when it comes to shale…
Read More “Heinz Spent $3.3M in 2013 on Anti-Drilling Research/Activities”
Erie County | Pennsylvania

Internet Company Invests in…Marcellus Shale?
January 20, 2014January 20, 2014

An internet company–Worldwide Internet, Inc.–spent $5 million to acquire a 40% in Marcellus Shale property near Erie, PA. The company swapped some stock to make the purchase. It may seem kind of strange that an internet tech company would invest in a property specifically because it has Marcellus Shale drilling potential. But perhaps it’s not so strange when you consider Worldwide Internet develops technology for huge data centers (big server farms with lots of computers), and those data centers are increasingly powered by natural gas used to generate electricity.

This investment is “crazy like a fox” on Worldwide’s part, if you ask us. Here’s their brief press announcement:
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Belmont County | Butler County | Carroll County | Energy Companies | Guernsey County | Noble County | Ohio | Pennsylvania | Rex Energy

Rex Energy 4Q13: Several Marcellus Experiments Paying Off
January 16, 2014January 16, 2014

The “little” driller in the Marcellus, Rex Energy, posted impressive gains in production for the fourth quarter of 2013. According to their 4Q13 update issued yesterday, Rex’s production, nearly all of which comes from the Marcellus and Utica Shale region, was 110 million cubic feet per day–a 12% increase over 2012. Of keen interest to investors is that 31% of net production for 4Q13 was oil and natural gas liquids (NGLs). The company gets a lot more money for those products than just plain “dry gas” methane.

Rex has operations in western PA and eastern OH. Of interest to MDN is that Rex is testing a strategy of drilling both the Marcellus and the shallower Upper Devonian layers in a single well, apparently with good success. They’re also experimenting with spacing wells closer together–at 600 feet apart instead of the traditional 750 feet. Rex is innovating, and reaping the rewards. Here’s their full 4Q13 update:
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Energy Companies | Olympus/Huntley & Huntley | Pennsylvania | Range Resources Corp | Westmoreland County

Murrysville Park Lease to be Discussed at Meeting
January 16, 2014January 16, 2014

Last June MDN told you that Huntley & Huntley, a small conventional gas driller, had leased land surrounding the Murrysville Community Park in Westmoreland County, PA. At that time Huntley made overtures to Murrysville officials about leasing the land under the park for drilling from neighboring properties they already have under lease (see Conventional Driller Eyes Marcellus Under Murrysville, PA Park). Since that time MDN has learned that Huntley often works with and for Range Resources. Although it’s not clear if Range is the client in this case, we suspect that is the case.

Next Wednesday, Murrysville Council will take up a proposal from Huntley & Huntley (Range?) at their regularly scheduled public meeting. Both council members and Huntley want the public to attend and hear more about Huntley’s (Range’s?) plan, “in the interests of good communication.” Should be interesting…
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Energy Services | Industrywide Issues | Ion GX Technology | Pennsylvania | Seismic Testing | Westmoreland County

Tesla Thumper Trucks Arrive in Murrysville, PA This Month
January 16, 2014January 16, 2014

Seismic testing thumper trucks will arrive in Murrysville (Westmoreland County), PA at the end of this month, according to Murrysville Chief Administrator Jim Morrison. MDN told you in December that Murrysville residents were being approached by ION Geophysical to allow testing on their land for $5 per acres–Starbucks coffee money essentially (see Thumper Trucks Coming to Murrysville – Make a (Very) Few Bucks?).

According to MDN’s December story, the seismic testing would be performed by ION and begin in February. The testing that starts later this month, in January, is from Tesla Exploration–a different company. What’s not clear to MDN is whether or not Tesla is doing their testing on behalf of ION, or in addition to ION. Maybe a sharp MDN reader with knowledge of the situation can elucidate? At any rate, one thing is for sure–seismic testing is coming to Murrysville, and soon…
Read More “Tesla Thumper Trucks Arrive in Murrysville, PA This Month”
Allegheny County | Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Bobby Vagt Leaves Heinz, Will Become Chairman of Rice Energy
January 15, 2014January 15, 2014

Looks like Bobby Vagt, current and soon to be former president of the Heinz Endowments, will get the last laugh. Vagt, you may recall, announced his “retirement” as president of the Heinz Endowments in October of last year. It has never been confirmed, but there’s plenty of anecdotal evidence to suggest mommie dearest Teresa Heinz Kerry bounced him out for his participation in helping to form the Center for Sustainable Shale Development (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?). Momma Teresa never gave Bobby permission to get that cozy with the drilling industry, and that, dear friends, was a no-no for Bobby.

So Bobby is taking off. And where is he going? To become chairman of the board at Rice Energy, once they complete their IPO (see Rice Energy Launches IPO, Hopes to Raise $840M). Bobby is already a wealthy man, but helping to steer the direction of Rice Energy will no doubt make him a lot wealthier. Which is amusing to MDN. You see, Bobby is making his money the old-fashioned way–he’s earning it. Momma Teresa made her money the liberal way–she married it. Here’s the story about Bobby saying bye-bye to Teresa and heading off to (much) greener pastures…
Read More “Bobby Vagt Leaves Heinz, Will Become Chairman of Rice Energy”
Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County

Mt. Pleasant Zoning Bd Says Range Water Impoundments in Violation
January 15, 2014January 15, 2014

Starting last August, Range Resources has been in a battle with the board of supervisors for Mt. Pleasant Township in Washington County, PA. The issue, the bone of contention, has been four water impoundments–three of which are for fresh water, essentially ponds (see Range Resources Argues with Mt Pleasant over Water Impoundment). The impoundments were originally used to drill nearby Marcellus Shale wells, several years ago. Since then, Range has continued using them, but now uses them to drill wells that are not nearby, in Mt. Pleasant Township. And the supervisors object.

In December it appeared there was a sliver of good news when the township said Range could proceed with converting one of the impoundments to an above ground enclosed tank impoundment for recycled waste water, subject to certain terms and conditions (see Range Strikes Deal with Mt Pleasant for 1 of 4 Water Impoundments). It now seems that was a bit too optimistic. On Monday the Mt. Pleasant Zoning Hearing Board (different group of people from the board of supervisors) voted unanimously to uphold notices of violation issued by the township’s zoning officer against the four Range impoundments, so here we go again…
Read More “Mt. Pleasant Zoning Bd Says Range Water Impoundments in Violation”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Reminder: Ben Franklin Shale Gas Contest Deadline is Feb 1
January 15, 2014January 15, 2014

MDN previously told you about the Ben Franklin Shale Gas Innovation and Commercialization Center’s $100,000 contest (see 2014 Ben Franklin Shale Gas Contest – $100K in Cash Prizes!). A gentle reminder that the Institute’s deadline to apply to receive one of four $25K prizes for an up-and-coming innovator is quickly approaching–February 1st. Here’s more details from the Institute:
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Bradford County | Energy Services | Greene County (PA) | Industrywide Issues | Lycoming County | Pennsylvania | Pipelines | Preston County | PVR Midstream | PVR Partners | West Virginia | Wyoming County (PA)

PVR Partners Marcellus Pipeline Flows Increase 60% in 1 Year
January 14, 2014January 14, 2014

Midstream company PVR Partners issued an update yesterday to brag about their Marcellus operations–and well they should. Average throughput on the PVR “Eastern Midstream Systems” increased 60%, from 1.1 billion cubic feet per day average in December 2012 to 1.8 Bcf/d in December 2013. They also completed a total of 101 well connections in 2013 for the Eastern Midstream area.

PVR’s Eastern Midstream includes operations in Lycoming, Wyoming, Bradford and Greene counties in Pennsylvania, and Preston County in West Virginia. Here’s the full PVR update with more details:
Read More “PVR Partners Marcellus Pipeline Flows Increase 60% in 1 Year”