Statewide PA

Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pennsylvania General Energy | Statewide PA | Universal Well

PA Frack Pumps Converting to Use LNG for Fuel
January 21, 2013January 21, 2013

EQT was the first driller in the Marcellus Shale to convert a drilling rig to run on electricity produced by engines using an LNG/diesel mix (see this MDN story). CONSOL was next to experiment with converting some of their rigs to use LNG/diesel (see this MDN story). Then Seneca Resources, the gas drilling arm of National Fuel Gas Company, announced two of their drilling rigs will use 100% LNG as fuel (see this MDN story).

What started as a trickle is turning into a flood in Pennsylvania and throughout the Marcellus/Utica region and beyond. More companies are in the process of converting fleets to run on LNG or a mix of LNG/diesel. These new conversions will not only power initial drilling, but will also power the massive pump engines and heavy equipment used in the fracking process itself…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Newly Elected PA Auditor General Targets DEP First Day on Job
January 16, 2013January 16, 2013

Keeping a campaign pledge—because it’s always good to keep a pledge if you’re an anti-drilling Democrat, but it’s OK to conveniently forget all the other pledges you made—the newly sworn-in Auditor General for Pennsylvania, Eugene DePasquale, has targeted the state Dept. of Environmental Protection (DEP) in what can only be described as a political attack in his very first day on the job:

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Allegheny County | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Man Bites Dog: Pittsburgh Law Firm Opens Operation in Houston
January 16, 2013January 16, 2013

In the news business, no one wants to run a story along the lines of “dog bites man”—that’s not news. But when the story is “man bites dog,” that’s news. This is one of those stories. Hardly a week goes by that MDN does not read about a law office expanding it’s practice somewhere in the Marcellus or Utica Shale region, many times it’s a branch office of a large Houston, TX law firm opening up in the Marcellus region. Such announcements are (let us be honest) self-serving advertisements to try and get business. Nothing wrong with that! But it’s not something MDN readers will be interested in reading about.

This time, however, a law office expansion is news. Why? Because it’s not a big Houston energy law firm setting up shop in Pittsburgh, but the other way around. For MDN, the story points out how the Marcellus Shale has changed the energy game in the U.S. and is, ever so gradually, shifting the center of power in the energy universe from Houston to Pittsburgh…

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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Was PA Gov. Tom Corbett Bribed by Fracking Waste Hauler?
January 15, 2013January 15, 2013

In typical fashion, anti-drillers have brought out the long knives for pro-drilling PA Gov. Tom Corbett. The latest attempt to try and influence next year’s election cycle is brought to you by the Philadelphia Inquirer.

This story paints the picture that a wealthy political donor whose company hauls drill cuttings got special treatment from the (then) incoming Corbett and the state Dept. of Environmental Protection in early 2011 in return for a $100,000 political donation. That is, the Inquirer says, in so many words, that Corbett was bribed. Was he?

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Did PA DEP Undercount Act 13 Wells & Forfeit $303M in Revenue?
January 10, 2013January 24, 2013

Note: MDN’s headline originally stated “$100M” in revenue was forfeited. The study’s lead author, Joel Gehman, contacted MDN to correct that number. We misunderstood. They believe the DEP has forfeited two to three times that amount: $205-$303 million.

In an attempt to shame the Pennsylvania Dept. of Environmental Protection (DEP) into action to improve their data reporting for unconventional shale wells, researchers at the University of Alberta and McGill University (both in Canada) have published a paper in the journal Environmental Practice claiming the DEP undercounted the number of natural gas wells used for assessing the new Act 13 impact fee, thereby denying the state an extra ~~$100~~ $205-$303 million they could have received in tax revenue (see article below).

The article/study is titled “An Analysis of Unconventional Gas Well Reporting Under Pennsylvania’s Act 13 of 2012” and is peer reviewed, which supposedly blesses it as being accurate. However, the PA DEP strongly objected to the methodology used by the researchers and has said, point blank, they misunderstand the Act 13 requirements for what constitutes an unconventional well under the Act 13 law. DEP says there is no missing tax revenue due to an undercount. The researchers glibly reply the purpose of the article is to needle the DEP into “fixing” their data problem.

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

PA DEP Finalizes Procedure for Using Acid Mine Water in Fracking
January 10, 2013January 10, 2013

For most of 2012 the Pennsylvania Dept. of Environmental Protection (DEP) researched how it might encourage, evaluate and control the use of acid mine drainage water for use in fracking natural gas wells. Such a practice would fix two problems at the same time—clean up acid mine drainage, and provide an abundant source for water to use in fracking. The DEP announced yesterday they have finalized their procedures and have published them in a white paper (see the white paper embedded below).

More than 300 million gallons of water is discharged from mines in PA waterways every day—a really big problem. This initiative is a win/win for the state.

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Commodity Price | Industrywide Issues | Pennsylvania | Research | Statewide PA | Statewide WV | West Virginia

Marcellus Shale’s Prominent Role in Latest EIA Outlook
January 9, 2013January 9, 2013

Yesterday the U.S. Energy Information Administration (EIA) released their monthly Short-Term Energy Outlook (STEO), which includes the outlook for natural gas. EIA has some of the best and brightest that crunch the numbers, so when they issue their reports, people pay attention. EIA reports are not exactly a crystal ball to predict the future—but they’re darned close.

The Marcellus Shale of Pennsylvania and West Virginia is mentioned prominently in this update, including its predicted role in boosting overall natural gas production this year. Below is the natural gas portion of the STEO, with predictions for prices, production and consumption in 2013:

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

EPA to Release Fracking Study Water Test Results in Few Weeks
January 7, 2013January 7, 2013

A few weeks ago the federal Environmental Protection Agency (EPA) released a “progress report” on their multi-year study of hydraulic fracturing and it’s potential impact on water supplies (see EPA’s Fracking Study Progress Report – Dec 2012).

Last week, during an online presentation, an EPA official said the water test sample results/data they’ve gathered to date, including results from testing done in Pennsylvania, will be released “a number of weeks from now”:

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Chesapeake Energy | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA

Chesapeake’s Drilling Security – A Serious Business
January 7, 2013January 7, 2013

Chesapeake Energy takes security in and around it’s drill sites seriously—so much so they employ 24 full-time security officers to conduct roving patrols in an eight-county region in eastern Ohio and western Pennsylvania.

Security for Chesapeake, however, involves far more than driving by a drill site and rattling a chained fence…

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

PA DEP to Release Marcellus Drilling Air Emissions Data Soon
January 4, 2013January 4, 2013

In the next few weeks, data on air emissions from Marcellus Shale drilling operations will be made public via the PA Dept. of Environmental Protection (DEP) website. The data, required by the federal Environmental Protection Agency, has sparked a new idea at the PA DEP.

The DEP intends to also require emissions filings from compressor plants on conventional (non-shale) gas pipelines starting in March…

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Economic Impact | Electrical Generation | Industrywide Issues | Pennsylvania | Statewide PA

NJ Electric Generating Plant Powered by PA Marcellus Gas
January 4, 2013January 4, 2013

Although New Jersey seems hell-bent on opposing pipelines for low-cost Marcellus Shale gas (and would never tolerate fracking of their pristine soil), the state continues to benefit from Pennsylvania’s Marcellus Shale. The latest example is a brand new electrical generating plant currently being built in West Deptford Township. The new 738 megawatt plant will go online in 2014 and will be powered by—yep—PA Marcellus Shale gas, generating low-cost electricity for the residents of New Jersey. Can anyone say “hypocrites?”

An announcement from the company that will supply the new plant with low-cost Marcellus Shale gas to power it for the next 15 years:

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Crime | Industrywide Issues | Litigation | Pennsylvania | Statewide PA | Wastewater

Did Man Convicted of Dumping Shale Wastewater Get Off Easy?
January 2, 2013January 2, 2013

The Pennsylvania State Attorney General’s office has appealed the sentencing of a man who owned a shale gas wastewater hauling company who was convicted off dumping millions of gallons of wastewater into streams and abandoned mine shafts. The AG thinks a sentence of seven years’ probation with no prison time is not good enough:

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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Shell Ethane Cracker in PA Still Not a Done Deal
December 27, 2012December 27, 2012

As MDN has cautioned in previous stories, and as Shell themselves have said, the $2 billion ethane cracker plant planned for Monaca (Beaver County), PA is still not a done deal. Yes it’s looking good, yes PA passed the necessary tax incentives, but Shell is still studying the site for the proposed plant. Although Shell was supposed to purchase the land by the end of 2012, that now will not happen.

Like any real estate deal—until the money is in the bank and the deed in your hand, anything can happen…

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Air Quality | Alternative Energy | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Climate Change Being Used as Excuse for New Law in PA
December 27, 2012December 27, 2012

In 2009, the Pennsylvania Dept. of Environmental Protection’s (DEP) Climate Change Advisory Committee released a plan with non-binding recommendations aimed at reducing greenhouse gas emissions 30 percent statewide by 2020. The move was prompted by a 2008 law passed by the state legislature. (Ever notice “global warming” became “climate change” because the earth isn’t actually warming? … but we digress.) Part of the “recommendations” to reduce carbon dioxide is more use of natural gas. But getting natural gas from the ground tends to increase the release of methane, another so-called greenhouse gas.

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Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | Utica Shale | West Virginia | Williams

Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream
December 21, 2012December 21, 2012

Two large midstream (pipeline & processing plant) companies, Dominion and Caiman Energy II, announced a new $1.5 billion, 50/50 joint venture to form a new midstream services company to service the Utica Shale in Ohio and Pennsylvania. The name of the new company is Blue Racer Midstream. Sound familiar? It should. Yesterday MDN brought you the news that Williams is investing $380 million in Caiman Energy/Blue Racer (see this MDN story).Williams owns nearly half of Caiman Energy II (47.5%).

One of the core assets of the new Blue Racer Midstream company will be Dominion’s previously announced $500 million natural gas liquids processing plant in Natrium, WV (see this MDN story). The Natrium plant was scheduled to go online by Dec. 31—a deadline that won’t be met. However, work on the new NGL plant continues at a “furious pace” and the plant will be online in early 2013. Dominion’s extensive gathering pipeline system in eastern Ohio is also part of the deal.

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Anadarko | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Talisman Energy | Taxation

PA PUC Rules Against Anadarko & Talisman on Impact Fee
December 21, 2012December 21, 2012

Contrary to the wishes of Anadarko Petroleum and Talisman Energy, the Pennsylvania Public Utility Commission (PUC), charged with collecting Act 13 impact fees from shale drilling in the state, ruled that setting conductor pipe does in fact trigger or require a company to pay an impact fee from that point forward. Anadarko and Talisman had argued it does not constitute spudding (or starting the drilling process) for a well. The impact fee is levied when a well is spud.

From the PUC announcement yesterday:

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