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AOP Clearwater Plant in WV a Big Success in Treating Marcellus Shale Wastewater

AOP Clearwater Plant, Fairmont, WV A lesson for Owego and Tioga County, NY from Marion County, West Virginia where a new wastewater treatment plant is a big success. The AOP Clearwater Plant is located just outside of Fairmont.

According to AOP Clearwater President Louis Bonasso, they have had no problems getting customers from oil and gas drilling companies in the Marcellus Shale. In fact, the trucks are “lining up” at the facility.

“We are a distillation-crystallization process, available to the oil and gas producing community in the area for clean-up of flow back and production brine waters,” said Bonasso.

Which means, the contaminated water is brought in on trucks, put through an extensive cleaning process, and pumped back out–as clean water for the oil and gas companies to reuse.

“We offer a very rapid unload-reload opportunity for trucking companies. Instead of sitting in line, we unload in about 11 minutes and we can reload in about the same time,” said Bonasso.*

Beside creating 16 jobs and bringing revenue to the county, there is this positive side benefit:

Through the cleaning process, salt is removed from the contaminated water and is able to be re-used to treat winter roads.

“All the salt that we produced since the plant started operations in November was sold in Marion County to independent contractors and the city,” explained Bonasso.*

*The State Journal (Mar 9) – AOP Clearwater Plant Open in Marion County

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Marcellus Leasing & Drilling in the West Virginia Panhandle Heats Up

West Virginia Marcellus Shale is getting hot. From an article* in the Steubenville (OH) Herald-Star, we get a mountain of good intelligence on what energy companies have and are paying in the West Virginia panhandle:

  • AB Resources is paying the New Vrindaban Hare Krishna Community in Marshall County $2,500 per acre for approximately 4,000 acres, and 18.75 percent production royalties. That works out to $10 million in lease payments.
  • Chesapeake paid $750 per acre and 14 percent royalties to the Wheeling Park Commission for leases in the Oglebay and Wheeling Parks in 2009. The park commissioner is not happy that Chesapeake is planning to pay more this year to lease public lands in neighboring Ohio County.
  • Chesapeake paid $2,800 per acre and 18.75 percent production royalties last month to the Marshall County Board of Education for rights to 177 acres in Sherrard.
  • Chesapeake has 11,000 acres under lease in Ohio County, and 45,000 acres (with 26 wells drilled) in Marshall County.
  • Trans Energy owns and operates 300 active wells in Marshall, Wetzel and Marion counties, with 40,000 acres under lease.

Also, according to the article:

Current lease contracts range from as low as $5 per acre to as high as $2,800 per acre, with production royalties ranging from 12.5 percent to 18.75 percent. Landowners are being urged to think carefully before signing any contract.*

*Steubenville Herald-Star (Mar 8th) – Steubenville Herald-Star – Natural gas could bring riches to Panhandle

WV Senate Votes on Change of Definition for Marcellus Drilling from Deep to Shallow

The West Virginia State Senate is set to vote on a bill (SB369) that would change the designation of horizontally drilled gas wells in the Marcellus Shale from “deep” wells to “shallow” wells. The reason? To clear up jurisdictional disputes about who regulates and monitors the wells. Deep wells are regulated by the West Virginia Oil and Gas Conservation Commission, and shallow wells are regulated by the Shallow Gas Well Review Board.

But some, including the West Virginia Surface Owners’ Rights Organization, an anti-drilling organization, say the change is the equivalent of “legalized stealing.” According to Dave McMahon, founder of the group:

Unlike wells defined as “deep,” shallow wells cannot be made subject to well spacing and royalty sharing rules, McMahon said well spacing and royalty sharing laws allow mineral owners whose natural gas is drained by wells on their neighbors to receive their share of the royalties, McMahon said.

If Marcellus wells aren’t subject to those laws, McMahon said, gas well drillers could drill on the edge of neighboring mineral owners’ land and drain gas from the mineral owners’ tracts without paying for it.*

The Independent Oil & Gas Association of West Virginia has endorsed the bill, saying the changes allow drillers to finish wells with newer technology.

Who’s right? A tough one to call. It’s certainly not fair to have the gas beneath your feet drained away by a neighbor and not be compensated for it. But will that really happen? If you have insight, or an opinion, share it in the comments.

*The Charleston Gazette (Mar 1) – Rush on gas-well drilling bill unfair, owners group says

UPDATE – March 2

Senate Bill SB369 passed the West Virginia Senate today with only a single dissenting vote (Sen. Randy White, D-Webster). Read about it here: WV Public Broadcasting

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Trans Energy Begins Drilling Third Horizontal Marcellus Well in Marshall County, WV

Trans Energy (Nov 18):
Press Release: Trans Energy Begins Drilling Third Horizontal Marcellus Well in Marshall County, WV

From the press release:

Trans Energy, Inc. announced today that it has begun drilling the Whipkey #1H well in Marshall County, West Virginia. The Whipkey #1H will be drilled and completed horizontally in the Marcellus shale.

The Company plans to drill the vertical portion of the Whipkey #1H well to a depth above the kick-off point of approximately 6,500 feet. A second, larger rig will follow-on immediately to drill the horizontal portion.

James K. Abcouwer, President and CEO of Trans Energy, said, “We have to-date successfully drilled four vertical Marcellus wells. We have also successfully drilled and completed one horizontal Marcellus well, the Hart #28H, and partially drilled a second horizontal Marcellus well, the Anderson #7H, both of which are in Wetzel County, West Virginia. Continuing our horizontal program in another county is another significant step forward for Trans Energy to properly develop its acreage position in northern West Virginia.”

The Company continues to expand its acreage position centered on Wetzel, Marion, and Marshall Counties in West Virginia, which it believes to be the heart of the most prolific natural gas resource in Appalachia, and one of the greatest in the United States.

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Dunkard Creek Fish Kill Update

Pittsburgh Post-Gazette (Oct 14):
Drilling water may be cause of fish kill: DEP points to salty discharge from mine

Charleston Gazette (Sept 21):
Consol mine may not be reason for fish dying

An update on the fish kill in the Dunkard Creek which runs along the Pennsylvania and West Virginia border. As you recall, MDN pointed out that a connection to drilling in the Marcellus Shale for natural gas was tenous at best. A new story in the Pittsburgh Post-Gazette further strengthens that view (although you have to read the article with a discerning eye).

This new article says the PA Department of Environmental Protection is now pointing the finger of blame (mostly) at an area coal mine. Here’s how the article starts:

A heretofore undisclosed underground flow of mine pool and methane gas well drilling water into Consol Energy’s Blacksville No. 2 Mine may have contributed to the salty, polluted discharges that caused the massive, month-long fish kill on Dunkard Creek.

Notice the confusing language that talks about “methane gas well drilling.” It leads you to believe the problem is about gas drilling, perhaps even hydrofracturing. It is not. Later on we get this:

[The PA DEP] requested that the U.S. Environmental Protection Agency revoke the federal deep well injection permit that allows Consol to dispose of coalbed methane drilling waste water…

So the waste water, IF it is the cause, comes from coal mining, not natural gas hydrofracturing. We need to be very clear about that. Blacksville No. 2 is a coal mine–there is no drilling for natural gas at that location. The PA DEP is saying that discharges from the coal mine into the creek “may have contributed” to the fish kill. Consol is vigorously denying the connection.

So what is the connection to drilling in the Marcellus? A fantastical story. Here’s another paragraph, deep in this article:

The Pennsylvania DEP said that algae — which may have “hitchhiked” to the Mason-Dixon Line on drilling rigs brought up from Texas to work in the Marcellus shale gas fields in Pennsylvania and West Virginia — was able to flourish in a brackish Dunkard Creek because of the high levels of dissolved solids and chlorides discharged into the stream by Consol’s treatment facility.

There you have it. Nasty coal miners weakened Dunkard Creek, and nasty gas drillers drove trucks from Texas to the area and those little algae devils had the nerve to hitchhike along and jump into the Creek right where it was weakened and cause this problem. Go figure.

Oh, one more little wrinkle in this story, that comes from the Charleston Gazette:

West Virginia environmental officials now say a nearby coal mine may not be the only reason fish are dying in Dunkard Creek.

Department of Environmental Protection officials say more dead fish have been found in the creek, but more than a mile upstream from Consol Energy’s Blacksville No. 2 mine.

So, more than a mile upstream from where the coal mine discharges into Dunkard Creek they found dead fish. If the “weakened” water was downstream and the algae flourish in weakened water, how might that have somehow traveled upstream? Oh wait, I’m using logic instead of blind eco-nut belief…what was I thinking??

Bottom line: I’m not categorically saying the coal mine plays no role, nor that hitchhiking algae plays no role. I am saying before we declare such things to be the case, let’s investigate and use some SCIENCE instead of blind and biased beliefs to declare a combination of coal and natural gas mining as the cause.

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Anti-drilling Crowd Calls for “Balance” Between Energy and Environment

Poughkeepsie Journal (Oct 8):
Outdoors: Balance must be struck between energy, environment

More misinformation from the anti-drilling crowd. The “reporter” for this article, Bill Conners, starts with general information that is of interest for everyone in New York:

According to the New York State Department of Environmental Conservation, there have been more than 75,000 oil and gas wells drilled here since the late 1800s; some 14,000 remain active.

He then briefly describes hydrofracturing, and moves on to cite the Dunkard Creek problem of fish dying along the border of Pennsylvania and West Virginia. As previously noted in MDN, the problem is about an overgrowth of algae, of a strain of algae not normally found in the creek. There may or may not be a tie with gas drilling. The link that is being made is “perhaps” the algae somehow got onto drilling equipment and trucks used in drilling and hitchhiked to the Dunkard Creek. This is highly speculative at best. More science please!

But the anti-drilling crowd is in a rush to tie Dunkard Creek to the thought in readers’ minds that “drilling causes fish to die where ever it’s used.” Mr. Conners, in this article, does not detail the issue of Dunkard Creek, he merely mentions lots of fish dying and that it is somehow tied to drilling–leaving the impression that chemicals are the cause. Here is the sum total, in context, of what he says on the matter:

Unfortunately, there are risks associated with using the [hydrofacturing drilling] technique. The various fluids used can, and sometimes do, damage aquifers and nearby water bodies. In early September in Blacksville, W.Va., residents started noticing dead fish along Dunkard Creek, just below the border of Pennsylvania. It wasn’t long before the entire fish population was wiped out along 35 miles of the previously fertile stream. It is virtually impossible to know how long it will take for the damage to be mitigated, whether by remediation or by Mother Nature.

There are charges flying back and forth, and there is an ongoing investigation as to whether or not the damage to Dunkard Creek came as the result of a spill from a drilling operation along the creek. Nationwide, it is estimated that 90 percent of the wells are drilled using fracking. It is not hard for things to go wrong, and when they do, property is damaged and lives turned on end.

Here is the story as told in the Pittsburgh Post-Gazette from last week:

An invasive toxic algae, blamed for contributing to the massive Dunkard Creek fish kill along the Pennsylvania-West Virginia border, may have hitchhiked to the region aboard equipment used in Marcellus shale drilling.

And this:

But the West Virginia agency [Department of Environmental Protection] doesn’t know how the algae got into the creek.

“We might never know how it got there,” said spokewoman Kathy Cosco. “We are trying to determine if it’s present already in other water bodies or has spread.”

Investigators also are looking at the possibility that someone illegally dumped drilling wastewater into the creek.

Yes, wastewater from drilling is one of the possible scenarios being looked at, but that, as well as “hitchhiking algae” are pure speculation right now. There is no science, no proof, no direct tie-in with drilling. But you won’t find that in this story because it doesn’t fit the template of the anti-drilling crowd. Read your news carefully.

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Wheeling, WV Drilling Vote Delayed

Intelligencer Wheeling News Register (Oct 7):
Drill Vote Delayed

Wheeling, WV city council members have delayed a vote to allow Chesapeake Appalachia (a subsidiary of Chesapeake Energy) to begin drilling on city-owned land. From the article:

Though the Wheeling Park Commission has approved the lease allowing the company to drill on its property at Wheeling and Oglebay parks, city officials want to gain more information about the potential environmental impact of Chesapeake’s work before allowing the company to drill on city property.

Council members want to visit some of Chesapeake’s other drilling sites first to see first-hand what they look like. No complaints here. Council members should satisfy themselves that it will be safe and beneficial to the local community (which it will be), and then move forward.

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Toxins tied to fish kill may have hitchhiked: Investigators weigh whether mining equipment is culprit

Pittsburgh Post-Gazette (Oct 4):
Toxins tied to fish kill may have hitchhiked: Investigators weigh whether mining equipment is culprit

A highly speculative and irresponsible article trying to tie an algae buildup along the Pennsylvania-West Virginia border to drilling for natural gas. I would go as far as saying it’s pure fantasy. But that’s what passes for “news” these days. Part of the article ties in completely unrelated news, like the Cabot problems in Northeast PA, with this one–a favorite tactic of people who don’t have a case.

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West Virginia DEP Wants Your Comments on Water Use in Marcellus Drilling

From an article in the Charleston Daily Mail (obviously adapted from a press release):

CHARLESTON, W.Va. — The state Department of Environmental Protection announced it is seeking public comment on a draft document that addresses drillers’ water use and disposal in the Marcellus Shale formation.

Department secretary Randy Huffman said in a prepared statement, “New advancements in drilling technology have created increased interest in exploring the Marcellus Shale formation in New York, Pennsylvania, and recently in West Virginia. What we are concerned about is the increase in the amount of water used and the disposal of wastewater that results from using these new drilling techniques.”

The department will accept comments about the document until April 17. The document can be viewed online at www.wvdep.org/marcellusguidance. Comments about the draft can be submitted by e-mail to DEP.Comments@wv.gov or mailed to the Public Information Office at 601 57th Street SE, Charleston, WV 25304.

Make your voice heard! You have until two days after tax day to comment.

Direct link to the draft document: www.wvdep.org/FrontNews/Marcellus Guidance Document.pdf

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Gastar Exploration’s 42,000 Acres in the Marcellus – No Development Until a Partner is Found

Energy company Gastar Exploration reports the following about their Marcellus commitment in a recent quarterly financial filing:

In the Marcellus Shale we hold approximately 42,000 net acres in northern West Virginia and southwestern Pennsylvania. To date, we have drilled 10 shallow wells, which will allow us to hold the related leases with production. Currently, we are seeking a joint venture partner to help us further develop this play. We do not expect to drill additional shallow wells until we secure a joint venture partner or until natural gas prices improve. We will continue to maintain our leases through renewals, extensions and renegotiations of drilling commitments.

Read the press release: Gastar Exploration Reports Fourth Quarter and Full Year 2008 Financial and Operational Results

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Drilling in the Monongahela National Forest Put on Hold

Recently the U.S. Bureau of Land Management stopped a proposed auction for new oil and gas leases in the Monongahela National Forest (W. Va.) after protests from the Friends of Blackwater Canyon and The Wilderness Society. However, just because the auction is canceled for now, it doesn’t mean there won’t be an auction in the future, according to Bureau spokesman Terry Lewis. An article in The Charleston Gazette reports:

There are an estimated 280 billion cubic feet of federally owned natural gas beneath the forest. When combined with privately held resources, there could be as much as 860 billion cubic feet, according to the forest’s latest land and resource management plan.

Forest officials say there are 17 production wells on forest property, 16 of them tapping federally owned gas deposits.

For the past 50 years, drilling has focused on the Oriskany and other formations. It’s unknown how much gas is held in the Marcellus shale, which stretches from New York to West Virginia and is thought to hold trillions of cubic feet of natural gas. There are no Marcellus wells in the forest.

Read the full article: Monongahela drilling debate continues

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West Virginia Professor Touts Benefits of Shale Gas

A positive opinion article by Donald W. Lyons, professor of engineering at West Virginia University, recently ran in the Huntington, W.Va. Herald-Dispatch. Among the points he makes are these:

The United States needs to greatly reduce the amount of imported oil. To achieve this, we need more energy conservation, more wind, solar and nuclear energy and more bio-fuels. But even as we work to increase all of these, we also need more domestically produced natural gas. The failure to diversify our energy policy will lead to further consumer pain and a continued dismantling of key portions of our economy.

The economy of West Virginia can benefit by the production of Marcellus shale natural gas. West Virginia is fortunate that the state will continue to be a major contributor to the “fuels of the future” and the good jobs associated with energy production.

Read the full article: Shale gas could move U.S. toward energy independence