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    Pittsburgh Suburb Moves to Regulate Seismic Testing by H&H

    One of the first steps before a company decides to drill for shale gas (or oil), is to conduct a seismic survey–bouncing sound waves through the rock layers a mile or more down–to “see” what the geology looks like. It helps drillers target locations with the best possibility of success, which is a good thing for everyone (no unnecessary “misses” when drilling a well). One of objectives of the original Act 13 law passed in PA in 2012 was to provide uniform zoning ordinances for the oil and gas industry, so drillers don’t have to work with a crazy quilt patchwork of zoning requirements in every new town in which they drill. That failed when seven selfish towns filed a lawsuit that ultimately went to the PA Supreme Court, where the towns won the right to pass their own zoning regulations for oil and gas drilling (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). So now drillers have to face different standards/restrictions/rules in every town where they drill. Thank you seven selfish towns! Huntley and Huntley is one of those drillers. In May MDN told you that H&H is conducting seismic surveys in Westmoreland County (see Huntley & Huntley Targets New Drilling in Westmoreland County, PA). H&H now wants to conduct seismic surveys in neighboring Allegheny County, in the Borough of Oakmont (suburb close to Pittsburgh, northeast side of the city). Because of H&H’s interest, Oakmont has (surprise!) proposed a new seismic survey ordinance. We have a copy of the 9-page ordinance below. Oakmont will hold a special meeting on July 3rd to discuss it…
    Read More “Pittsburgh Suburb Moves to Regulate Seismic Testing by H&H”

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    Free at Last! EPA, US Army Corps Rescind Obama WOTUS Rule

    In May 2015 the Obama rogue Environmental Protection Agency (EPA) along with the Obama U.S. Army Corps of Engineers (USACE) released a finalized rule clarifying what “Waters of the United States” (WOTUS) means vis a vis what can be regulated under the federal Clean Water Act (see EPA Power Grab: Redefines Waters of the U.S. to Include Everything). Essentially the rule change redefined everything down to mud puddles (no, we’re not exaggerating) as being subject to the federal Clean Water Act. It was yet another attempt to bring oil and gas regulation under the purview of the federal government, a violation of the U.S. Constitution. In October 2015, a federal judge stopped WOTUS from going into effect while it’s litigated (see Sixth Circuit Court Stops EPA from Implementing WOTUS Anywhere). Eventually 31 states along with other entities filed briefs with the 6th U.S. Circuit Court of Appeals opposing the rule (see 31 States Ask Court to Dump Obama WOTUS Rule as Unconstitutional). A number of Senators and Congressmen joined the lawsuit (see 21 Senators, 67 Representatives Join Case Against EPA WOTUS Rule). You can see just how unpopular the rule was/is. So it is with enormous pleasure and pride we bring you the news that the Trump EPA and Army Corps of Engineers has reversed course, filing a new rule to rescind the Obama WOTUS rule…
    Read More “Free at Last! EPA, US Army Corps Rescind Obama WOTUS Rule”

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    Pro Oil & Gas “Recapitalizes” with PE Firm Intervale Capital

    Pro Oil & Gas Services (formerly Pro Oilfield Services) is an oilfield services company (OFS) providing wireline, pumping services, flowback, frac stacks, wireline lubricators and pressure control, surface drilling and more. The company is headquartered in Houston, TX operating in a number of shale plays, including the Marcellus/Utica. We were unaware of the company until spotting a press release that announces the company has been “recapitalized” by Intervale Capital, a private equity (PE) firm that invests money in companies, adding them to its “portfolio.” The terms of the recapitalization were not disclosed. What all of this high finance language means is this: Pro Oil & Gas was just bought out by Intervale Capital. We expect all of the personnel to remain the same, including the founder/CEO. But make no mistake, Intervale now pulls the strings. It’s their money at risk, and they are now calling the shots…
    Read More “Pro Oil & Gas “Recapitalizes” with PE Firm Intervale Capital”

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    New Study: Domestic NatGas Generated $550 BILLION Benefit in 2015

    A new study from ICF International (commissioned by the American Petroleum Institute) reveals some truly mind-blowing numbers. The natural gas supply chain–those companies involved in providing goods and services to the industry–generated $550 billion in economic activity in 2015. More than half a trillion dollars! That’s almost 3% of the country’s GDP. From a single industry. Staggering. Equally staggering: Because we are finding and extracting natgas here at home, American consumers will have saved more than $100 billion on the cost of natural gas by 2040. That’s a private (non-governmental) $100 billion invested in our economy over the next 25 years. The 268-page study, titled “Benefits and Opportunities of Natural Gas Use, Transportation, and Production” (full copy below) projects total employment related to the natgas industry will reach 5.9 million people by 2040. Can you even begin to wrap you brain around this?! The report contains information and data for how natgas benefits EACH of the 50 states. This is a professional study by a professional firm, not just rah rah unsupported pablum like you get from radical environmentalists. These are real numbers you can believe. Frankly, the numbers tell one of the most incredible stories of the 21st century…
    Read More “New Study: Domestic NatGas Generated $550 BILLION Benefit in 2015”

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    Stanford Geophysicist Obliterates Sierra Club Lies re Fracking

    Last week Stanford University held their annual Silicon Valley Energy Summit debate. Mark Zoback, head of Stanford’s Natural Gas Initiative (after teaching geophysics at Stanford for 30 years) said of course fracking is safe, and beneficial. On the other side of the debate was a loopy anti-fracker from the abominable Sierra Club. Zoback verbally spanked her–obliterating her arguments against fracking. The question before the debaters: Do U.S. benefits of fracking gas and oil outweigh environmental costs? Arguing for fracking were Zoback and Dane Boysen, the former director of research operations at the Gas Technology Institute. Arguing against fracking were Lena Moffitt of the Sierra Club and Briana Mordick of the equally horrible National Resources Defense Council (NRDC). Below is a summary of the debate, along with a full video of the hour-long debate…
    Read More “Stanford Geophysicist Obliterates Sierra Club Lies re Fracking”

  • Marcellus & Utica Shale Story Links: Wed, Jun 28, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Utopia (pipeline) one step closer to reality; public hearing for Trumbull Energy Center; pipeline security training; community college students get a thrill from visit by Shell CEO; PA severance tax a jobs killer; MVP will help build a better WV; fracking rarely linked to earthquakes; Trump energy plan will make America the new Saudi Arabia; Perry unnerves gas drillers with grid study; FERC commissioner leaving Friday; LNG fuels nearly 50% of Japan’s powergen; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Jun 28, 2017”

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    Shell Gets Important Wastewater Permit for Beaver Cracker Plant

    It was more than six months in the making, but finally the Pennsylvania Dept. of Environmental Protection has granted Shell a permit that allows the facility to discharge wastewater and storm water into the Ohio River. Which may sound like Shell just got a permit to pollute the Ohio River–but that’s not what is happening. Shell is building their mighty $6 billion ethane cracker on a site formerly used as a zinc smelter. The old Horsehead Corp. plant held a permit that allowed the plant to discharge wastewater with some total dissolved solids (TDS) into the Ohio. When Shell bought the site, they also inherited the Horsehead permit for wastewater discharge. Shell filed a plan back in December with the PA DEP to modify that permit for the forthcoming cracker plant (see Shell Cracker Wastewater Discharge Becomes an Issue). So-called environmentalists jumped up and down like a rattlesnake had entered the room–but their showboating had no effect. After six months of review, the DEP has determined Shell’s wastewater request is OK by them, and will not unduly harm the environment. So last Friday, the DEP issued a National Pollution Discharge Elimination System (NPDES) permit amendment for the cracker plant. This is an important step, without which construction on the plant would not begin…
    Read More “Shell Gets Important Wastewater Permit for Beaver Cracker Plant”

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    Son of NED: Tennessee Gas Considers Another New England Pipeline

    Is Kinder Morgan’s NED pipeline project getting reincarnated?! You may recall that over a year ago, in April 2016, anti-fossil fuel nuts in Massachusetts and other northeastern states were orgasmic that Kinder Morgan announced the company had suspended (not necessarily canceled) any further spending/time/effort on the Tennessee Gas Pipeline expansion from NY through MA, otherwise known as the Northeast Energy Direct (NED) project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Now antis are nervous again. On May 23, Kinder Morgan launched a new open season (copy below) for increased capacity/delivery along the Tennessee Gas Pipeline (TGP) in New York, Massachusetts and New England. Kinder says while NED is truly dead, there’s still demand for more gas in New England they want to provide it. The company is (rightly) being cagey about how they will deliver that extra gas–if the market demand is there. Will it be a another pipeline, like NED? Will it be more compressor stations and pipeline “looping” along the existing route? Nobody knows yet. Sounds to us like this is shaping up to be Son of NED…
    Read More “Son of NED: Tennessee Gas Considers Another New England Pipeline”

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    Church Asks NY Court to Stop Broome County CNG Virtual Pipeline

    NG Advantage is building a new compressor station to tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County, NY (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called virtual pipelines compress natural gas and load it onto tanker trucks, and then distribute the CNG to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: LOTS of truck traffic. The Town of Fenton Planning Board recently approved the project, and MDN can report (since we swung by the site) that bulldozers and backhoes are hard at work transforming the site, getting it ready to construct the compressor station. However, a local elementary school, more than half a mile away, decided to sue to try and stop the project (see NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe). Now, a local Catholic church’s parish center, St. Francis of Assisi, has joined several nearby residents to launch their own lawsuit/petition asking a local court to halt construction…
    Read More “Church Asks NY Court to Stop Broome County CNG Virtual Pipeline”

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    Lancaster Anti-Pipeliners Reach New Low with Fake Graveyard

    Just when you thought you’ve seen how low some anti-pipeline fanatics will go, they surprise you and go even lower. Antis set up a fake graveyard with a half dozen authentic, 19th century tombstones, right next to a pipeline right of way for the Williams Atlantic Sunrise Pipeline in Lancaster County, PA. Williams is hypersensitive to ensure they don’t violate any “Native American” or other kinds of historic sites. So when they came across the fake graveyard, they thought it was real and proceeded as such, spending time and money to plan a route for construction that would protect the fake site. And antis, with full knowledge, lied to Williams’ people (not telling them is the same as lying in our book). And laughed their considerable derrieres off the entire time, wondering when those poor dunderheads at Williams would figure it out. Now Williams may have the last laugh, because what the antis did is fraud and prosecutable. So-called local Native Americans (i.e. Indians) were in on the “joke.” And now those Indian activists have the gall to say if Williams didn’t recognize something as fake, how will they recognize real Indian artifacts that need protecting? We ask a different question: Who will ever believe these so-called Native American activists again–when they are self-professed liars?…
    Read More “Lancaster Anti-Pipeliners Reach New Low with Fake Graveyard”

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    Indian Tribe Fights FERC Over Tiny Pipeline in Mass.

    In March 2016, the Federal Energy Regulatory Commission (FERC) approved Tennessee Gas Pipeline’s (TGP) Connecticut Expansion project (see FERC Approves TGP Connecticut Expansion Pipeline Project). The project includes building 13.42 miles of new pipeline loops in three states: Connecticut, Massachusetts and New York. When completed, the new looping will serve an additional 72,100 dekatherms of (mostly) Marcellus Shale gas to three utility companies in Connecticut. The $86 million project is in no way connected to TGP’s now-dead Northeast Energy Direct (NED) pipeline project. However, antis continue to pitch a fit and try to block the project. Can you imagine? They don’t want a single new inch of pipeline anywhere, for any reason. They are, in a word, insane. The latest tactic is to invoke the Indian gods to try and stop it. A local Indian tribe in Massachusetts has filed paperwork with FERC accusing the agency of violating the National Historic Preservation Act by not protecting “ceremonial stone landscapes” supposedly found along the path of the pipeline. If FERC refuses to “re-hear” their decision to allow the project, the Indians say they’ll sue in court…
    Read More “Indian Tribe Fights FERC Over Tiny Pipeline in Mass.”

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    Will the Merged EQT/Rice Energy be Too Big for Investors?

    A week ago yesterday, EQT and Rice Energy announced some of the biggest news we’ve every reported: EQT is buying out and merging in Rice Energy, to create the largest natural gas producing company in the United States (see EQT Buys Rice Energy in $8.2B Deal, Becomes #1 Gas Producer in US). The combined company will not only be the country’s largest shale gas producer, it will also jump to become the Marcellus/Utica region’s #1 producer/driller. Some analysts and investors are concerned about that. Since EQT/Rice is 100% focused on the Marcellus/Utica, does that put the company at risk? The market got a bit jittery following the announcement. Two days after the news EQT’s stock price tanked, down about $8/share. However, the stock price has since rebounded (see the chart below). Zacks Investment Research issued a research note last Friday analyzing the deal and what it may mean for investors…
    Read More “Will the Merged EQT/Rice Energy be Too Big for Investors?”

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    PA DCED Sec Davin Visits Shell Cracker Site, Pushes Severance Tax

    Dennis Davin

    Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED) took a field trip to visit the Shell ethane cracker site in Beaver County, PA last Friday. Davin was there to do some justified bragging about the facility and what it will mean for the Keystone State over the next 10 years. However, Davin was also there to push for a disastrous severance tax plan. Davin is a smart and competent guy. But he’s also a Democrat and his boss, Gov. Tom Wolf, sends Davin out to try and sell what can’t be sold: a severance tax that would literally kill the Marcellus Shale, the very thing making the Shell cracker plant a reality. Talk about conflicted! But Davin was there to do his master’s bidding, and that he did…
    Read More “PA DCED Sec Davin Visits Shell Cracker Site, Pushes Severance Tax”

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    ‘Peak Gas’ Theories Now Relegated to Tinfoil Hat Brigade

    Once upon a time, so-called smart people thought oil would run out at some point (“peak oil” theorists). Such theories have been around since the 1880s, the begging of oil! In the modern era those theories renewed again in the early 2000s. And since then, some have lumped natural gas in with it as well. As in, any day now the “house of cards” that is shale drilling will collapse and the gas will dry up and prices will go through the roof. None other than top oil and gas analyst Richard Zeits, writing on the Seeking Alpha investor website, calls peak gas theories in the same category as conspiracy theories. In our words, peak gas has moved to the tinfoil hat brigade. Kooks. Wackos. But there’s still plenty of them around. Every time overall production drops a bit, the peakers poke their heads out to claim “this is it!” Zeits offers his insights into why there will be plenty of natural gas, for at least the next 10 years (likely much longer), why production will continue to ebb and flow (market demand), and what it all means for prices in the short and longer term…
    Read More “‘Peak Gas’ Theories Now Relegated to Tinfoil Hat Brigade”

  • Marcellus & Utica Shale Story Links: Tue, Jun 27, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Rice brothers make a billion; Southwestern Energy debt trap; Youngstown jobs come back; PA rig count rear record ytd; Shell CEO shows up in Beaver County; EPA punishes PDC Energy; BP doubles down on offshore; new dawn for shale E&Ps; fallacy of peak oil; clogged oil arteries slow shale rush; wind power loses its wind; weaponizing the Endangered Species Act; Panama Canal shale gas; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jun 27, 2017”

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    DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay

    An Appeals Court decision issued Friday has (in our opinion) HUGE ramifications for New York State and the Dept. of Environmental Conservation (DEC) that has been corrupted by political influence from Gov. Andrew Cuomo. It also has ramifications in other states with overactive environmental agencies too. It is hard for us to overstate how important we think this decision is. The NY DEC has been corrupted and politicized by one of the most corrupt governors New York has ever had: Andrew Cuomo. The Cuomo DEC has unilaterally decided not to issue 401 water crossing permits for several federally-authorized pipeline projects, including Williams’ Constitution Pipeline, NFG’s Northern Access Pipeline, and a teeny tiny 9-mile pipeline Millennium wants to build from their main pipeline to an under-construction natgas-fired electric plant in Orange County, NY, called the Valley Lateral Project. Millennium took the bull by the horns early on, when it was apparent the DEC was following the same pattern of delay and then deny, suing the DEC (see Millennium Pipeline Sues Cuomo’s Corrupt DEC Over Expansion Delay). On Friday, the U.S. Court of Appeals for the District of Columbia Circuit dismissed the lawsuit by Millennium, which at first blush may seem like a blow. But it was the reasoning and opinion of the judges in dismissing the case that may change everything in New York. The judges said there is no case because if, as Millennium says, the DEC is denying the water permits, FERC itself has the power to jump back in and simply override NY DEC and issue the permits. This is a BOMBSHELL decision. That is, it’s a bombshell if FERC (with a soon-to-be-in-place quorum) exercises its constitutional authority…
    Read More “DC Court Tells Millennium FERC Can Override NY DEC Pipeline Delay”