Marcellus & Utica Shale Story Links: Mon, Jul 24, 2017
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Northeast gas output pressures prices; update of southeast power market pipeline projects; American-made pipeline plan heads to Trump’s desk; natgas vs nuclear subsidies; Boone Pickens in poor health; jobs coming back in the oilfield after years of decline; taking politics out of pipeline decisions; US and Russia battling to dominate European gas market; will US LNG find a market in Asia?; and more!
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In December 2015, Pennsylvania’s felony-indicted Attorney General, Kathleen Kane (now gone), brought a lawsuit against Chesapeake Energy, Anadarko and Williams accusing them of, among other things, royalty fraud (see 
The Federal Environmental Protection Agency (EPA), which is the agency in charge of approving oil and gas wastewater injection wells, will hold a hearing next Wednesday in Plum, PA (Allegheny County, near Pittsburgh) on whether or not to approve an application and plan from Penneco Environmental Solutions (division of Penneco Oil Co.) to convert a plugged gas well into a brine (wastewater) injection well. Typically when a hearing like this is held, it’s an indicator that the EPA will approve the project. However, just because the EPA approves it doesn’t mean it’s a done deal. After an EPA approval, the application then goes to the PA State Dept. of Environmental Protection where it goes through another round of reviews–and likely more public hearings. The stuff getting disposed of, which we generically call wastewater, is technically called brine, because of it’s salty/mineral-ly composition. Brine is naturally occurring water from the depths that comes out of oil and gas wells for years after they are drilled. Because of the high concentration of minerals in the water, it either must go through a rigorous recycling process, or get disposed of via an injection well. OH has more than a hundred such wells. WV has a few dozen. PA has less than a dozen, due to the geology needed. Every new injection well in PA is a big deal, including this one…
Not long after Michael Krancer was appointed Secretary of the Pennsylvania Dept. of Environmental Protection in 2011, he “requested” (which was more order than request) that municipal sewage treatment plants still accepting and processing Marcellus drilling wastewater stop the practice. At the time there were 15 plants accepting Marcellus wastewater. Under pressure from Krancer, they ended the practice in May 2011 (see 
We spotted an editorial in the Charleston (WV) Gazette-Mail written by Kevin DiGregorio, executive director of the nonprofit Chemical Alliance Zone (CAZ). According to the CAZ website, the organization “works with partners across West Virginia to boost and maintain investments and jobs in the chemical industry and related industries, including natural gas, manufacturing, and technology in general. We create, initiate, and facilitate business opportunities, leading to opportunities for you, your business or organization, and the State of West Virginia.” In other words, Mr. DiGregorio and the CAZ are at the nexus of many deals to bring petrochemical businesses to the Mountain State. So if anyone should know what may be “up the sleeve” and soon to be revealed, it’s Mr. DiGregorio. He hinted at it in his column. Writing that everyone has heard about the potential for a Braskem ethane cracker plant in Parkersburg (a project that appears to still be alive), Mr. DiGregoorio then says, “What you haven’t heard are all of the other potential (and confidential) projects that many of us are working on that might lead to new facilities and high-paying STEM (science, technology, engineering, mathematics) jobs that take advantage of methane and NGLs (ethane, propane, butane) to make various chemicals and plastics.” Wow! He seems to be saying there are a lot of projects in the works for WV in the downstream–those businesses that use the output from the shale industry…
While we wrote about a Penn State research study today that appears legitimate, but seven years too late (see New Penn State Frack Wastewater “Study” Beats a Dead Horse), there is another recently published Penn State study that is also legit that is not yet a huge issue, but certainly has potential to be a big deal. Penn State’s College of Agricultural Sciences has found that invasive, non-native plants are making significant inroads with shale gas development in Pennsylvania, with negative consequences for PA forests. How so? The invasive, non-native plants are hitching a ride on gravel and equipment used to create roadways in forested areas, and once those plants take root, they crowd out local, native plants. The study, titled “Unconventional gas development facilitates plant invasions” and published in the Journal of Environmental Management, concludes that more monitoring and early detection can help put a lid on the problem…
This past week, the North Carolina Dept. of Environmental Quality (DEQ) held two public hearings on Dominion’s proposed $5 billion, 594-mile natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. One hearing was in Fayetteville, the other in Rocky Mount. Both had more people opposed to the project than for it, although the Fayetteville hearing saw a strong showing of people in favor of the project. The Fayetteville public hearing was held Tuesday, and Rocky Mount on Thursday. Here’s the coverage we could find of the two hearings…
The Potential Gas Committee (PGC), a private non-profit organization loosely affiliated with the Colorado School of Mines, performs a comprehensive study of potential supplies of natural gas in the United States every two years. In April of 2013 MDN reported the committee’s findings of just how much gas is down there (see 
Rockwater Energy Solutions is a “leading provider of comprehensive water management solutions to the North American unconventional oil and gas industry” and the only company that provides complementary chemistry products and expertise in connection with its water solutions. Rockwater operates in the Marcellus/Utica region, among other shale plays. Select Energy Services is a billion dollar oilfield services company with three main divisions: water services, rentals, and wellsite completions. They operate in every major shale play in the country, including the Marcellus/Utica. Earlier this week the two companies announced they are merging in an all stock swap deal. It looks to be a true blending of the two companies, and not one company taking over the other. When the merger is done (later this year), John Schmitz, currently Chairman & CEO of Select, will become the full-time Executive Chairman and Holli Ladhani, currently the Chairman, President & CEO of Rockwater, will become the President & CEO of Select. The water parts of both businesses will be combined and branded with the Select name, but Rockwater branding will continue (as a division) for the chemicals business unit. Here’s the announcement of an impending marriage–made in heaven?…
We’ve been listening to fake news about a supposed connection between Russia and the Trump campaign for so long now, we’re ready to puke. It’s a totally fabricated story without even an allegation of wrongdoing. Fake news outlets like CNN run this garbage endlessly (so we’ve been told, we NEVER watch CNN). So perhaps you can forgive us for not highlighting and bringing you this news before now. There IS a Russia scandal–a serious one. But it has nothing to do with Donald Trump. The real Russia scandal is that Putin and Russia have been funneling millions of dollars to U.S. Big Green groups, like the Sierra Club and League of Conservation Voters Education Fund, in an attempt to smear and block fracking in the U.S. Russia is funding these efforts not because they care a scintilla about the the environment (come to think of it, the Sierra Club doesn’t care about the environment either, not really). No, Russia is funding anti-fracking efforts by Big Green as a way of eliminating competition for Russian oil and gas. If they can throw some money at the nutjobs in our country, and if those nutjobs can convince unthinking masses to go along, problem solved for the Russkies. Here’s the lowdown on the REAL Russia scandal…
Earlier this week MDN brought you the news, via a Wall Street Journal article, that EnerVest, a huge private equity firm with its fingers in many shale (and conventional) pies across the U.S., has gone bust (see 
In September 2016, MDN brought you the sad news that the former head of external affairs and government relations for Competitive Power Ventures (CPV), Peter Kelly, was indicted for bribing New York Gov. Cuomo’s long-time top aide Joseph Percoco to get state approvals for CPV’s $900 million Valley Energy Center natural gas-fired electric generating plant in Orange County, NY (see 
Once again it’s necessary to counter the false narrative in Pennsylvania media that “Pennsylvania is the only state without a severance tax” and “a severance tax will magically fix our over budget mess.” Last week MDN brought you news that 12 so-called Republicans in the PA House were behind an effort to force a vote on a severance tax (see 
Anti fossil fuelers believe they have a new angle in their years-long war to prevent Sunoco Logistics Partners from building the Mariner East 2 twin pipelines across the state: drilling mud spills. When a pipeline company installs a new pipeline, the vast majority of pipe is laid in trenches. However, there are places (creeks, rivers, wetlands, roadways) where you can’t just dig a trench to lay the pipe. In those cases, you drill underground horizontally, something called horizontal directional drilling (HDD). When you drill through rock, you need drilling mud to cool the drill bit as it chews away. Drilling mud is typically bentonite, a non-toxic clay substance used to manufacture things like toothpaste, cosmetics and kitty litter. The only threat from bentonite is that it can smother aquatic life if enough is spilled. Or it can foul a water aquifer–making the water in your well cloudy for a period of time, until it settles. Such an instance recently happened in Chester County, when Sunoco’s drilling for ME2 fouled an aquifer, causing well water for some 15 homes to become temporarily unusable (see 
For the past two years running, the Delaware River Basin Commission, a cooperative organization with five members–Pennsylvania, New York, New Jersey, Delaware and the U.S. Army Corps of Engineers–has received more than half a million dollars per year from PA as its dues to support the anti-drilling organization. The problem is, PA pays its full share, but states like NY and NJ consistently short-change the DRBC. PA Gov. Tom Wolf is a big DRBC fan. Wolf supports the DRBC’s ongoing ban of drilling in the Delaware River Basin–which unfairly denies landowners in Wayne and Pike counties (PA) from benefiting from Marcellus Shale drilling–Wolf’s own constituents. However, the DRBC’s gravy train from PA is now over. Gov. Wolf recently allowed the PA budget to pass, without his signature. Part of the budget bill whacks PA’s contribution to the DRBC to just $217,000 this year–less than half of what is has been getting. The effort to whack the DRBC came from PA representatives in northeastern PA, tired of the ongoing drilling ban. Looks like layoffs are coming to the DRBC. They don’t do a heck of a lot, so why not? Time to toss the bureaucrats out on their rear-ends…