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    Shell Paying $69M to Move Water Plant for Cracker Project

    positive signShell is currently spending an undisclosed amount of money (millions of dollars) to build a bridge to a site they now own where they may one day build a $2-$3 billion ethane cracker plant in Beaver County, PA (see Shell Begins Building Bridge to PA Cracker Plant Site). Shell is also reportedly spending $80 million to clean up the site (see Shell Paying $80M to Clean Up PA Site for Ethane Cracker Plant). In yet one more positive sign that the project will happen, Shell is spending $69 million to move a water intake site and build a new water treatment site for Center Township–because the current water intake is on the site Shell owns–and Shell needs extra capacity for water treatment. You don’t spend hundreds of millions of dollars to walk away from a project, in our humble opinion…
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    Actor Mark Ruffalo Asks PA Gov Wolf to Enact Drilling Moratorium

    cluelessAs a general rule, professional actors are some of the most clueless people on the planet. Mark Ruffalo, one of the most clueless of the clueless, was honored at a Pennsylvania college because of it. Ruffalo was honored by Dickinson College in Carlisle, PA (near Harrisburg) with the Sam Rose ’58 and Julie Walters Prize for his environmental cluelessism, er, a, activism. Hey, Ruffalo does a decent job with acting (we enjoy the Avengers movies)–we’ll grant him that. But have you ever noticed the lights are all on with Ruffalo–but nobody’s actually home? Anywho, the awarded Ruffalo, who calls himself “an accidental environmentalist,” will make a trip to Harrisburg today to deliver a letter from “100 organizations” and “25,000 concerned citizens” to Pennsylvania Gov. Tom Wolf. The letter will ask Wolf to immediately enact a fracking moratorium in the state. What…radical? No way that will ever happen? Pipe dream? You may have forgetten (but we didn’t) that the Pennsylvania State Democrat Party, before they nominated Wolf to be their leader, adopted an official plank in the party platform calling for the same identical thing (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). The clueless Ruffalo is asking for the same thing the Dems have already said they want…
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    NC Legislature Makes Local Frack Bans/Moratoria Illegal

    illegalLast week we told you how heartbreaking it is to see well-meaning (but ignorant) county officials in Stokes County, NC pass a three-year moratorium on fracking–repeating the same mistakes made in New York State (see Sad: NC County Passes 3-Year Moratorium on Fracking). Don’t look now, but that moratorium is now null and void. The North Carolina legislature passed a law in 2014 that specifically says local municipalities can’t regulate oil and gas exploration–it is the sole responsibility of the state to do so. Some municipalities, like Stokes, thought there were loopholes they could use, and so they enacted a moratorium. The last bill the NC General Assembly approved before adjourning, which is a 41-page “technical corrections” bill (literally passed in the middle of the night) introduced language which closes any perceived loopholes and makes any actions like the one in Stokes illegal. Let the fracking begin!…
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    CONSOL Continues Transition, Sells Another $101M in Coal Assets

    transformFor those of us who concentrate on the natural gas (and oil) industry, it’s sometimes easy to forget that CONSOL Energy, with major drilling operations in the Marcellus and Utica Shale, began life and is still one of the country’s largest coal companies. We’ve been telling you for years that the company is transitioning from being a coal company to being a natgas company (see CONSOL CEO: Company Transitioning to “More of a Gas Company”). The transition continues. Yesterday CONSOL announced it has sold off more of its coal mining assets for a tidy $101 million…
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    FirstEnergy Building $63M WV Electric Substation for NatGas Plant

    questionFirstEnergy Corp., an electric utility operating in the Appalachian region, announced yesterday they will construct a new substation near Smithfield, WV along with a new two-mile transmission line–in order to send more electricity to a nearby natural gas processing plant. FirstEnergy is spending $63 million to build the new substation and transmission line. The announcement doesn’t name the owner of the natgas processing plant, but we have a guess…
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    Marcellus/Utica Frac Plug Co. Sells Out to Venture Capital Firm

    bigger fish smaller fishHybrid Tool Solutions has just sold itself to a venture capital firm by the name of Hastings Equity Partners for an undisclosed amount of money. Hybrid Tool, headquartered in Oklahoma, has major operations in the Marcellus/Utica. The company has a patent pending, unique process for conducting frac plug drill outs. What the heck is that? Along the horizontal section of an underground bore hole, plugs are inserted every so often in order to wall off a section of the pipe where fracking will be done. The plugs divide the pipe into sections so each section can be worked on separately–starting with the section furthest out (the “toe”). After all sections are fracked, a drill is put down the hole to drill out the frac plugs and release the gas to the wellhead, putting the well into production. It is that process of drilling out the frac plugs that Hybrid performs, having done over 800 wells in the Marcellus/Utica over the past two years. By selling themselves (essentially getting new funding), they plan to expand beyond the northeast into other shale plays…
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    CLNG Releases Report Bashing Coal in Effort to Promote LNG Exports

    stone in glass houseThe Center for Liquefied Natural Gas (CLNG) released a new report earlier this week that purportedly shows the global environmental benefits of exporting LNG. The Pace Global-authored report, titled “LNG and Coal Life Cycle Assessment of Greenhouse Gas Emissions” (full copy below) found greenhouse gas (GHG) emissions from coal-generated electrical power to be 92 percent to 194 percent higher than from power generated from U.S.-produced LNG in five key international markets. Yes, CLNG is targeting another fossil fuel, coal, to justify itself–which is not a healthy thing in our opinion. Everyone (except Cornell professors Robert Haworth and Tony Ingraffea) knows that natural gas burns cleaner and is better for the environment than coal. But coal has its place and is an important energy source. At MDN we don’t throw stones in our fossil fuel glass house. CLNG has decided to capitalize on the mass-hysteria surrounding global warming (a condition that doesn’t actually exist) to try and make a case for more LNG exports. A poor strategy–but it’s one CLNG is pursuing, so we’re bringing you their announcement along with a full copy of the report that concludes exporting more LNG from the U.S. is good for Mother Earth…
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    Antis Continue Campaign Against Off-Shore LNG Terminal Near NY/NJ

    shoot yourself in the footA story we first brought you back in March continues to play out. Liberty Natural Gas filed a plan back in 2010, prior to the Marcellus Shale revolution, to construct an off-shore LNG import (not export) facility off the coast of New York and New Jersey–in the ocean. A floating LNG facility called the Port Ambrose project. A pipeline would run from the off-shore terminal to Jones Beach, NY and from there would connect to a Transco pipeline lateral. Anti-fossil fuelers who hate and oppose all fracking (indeed all fossil fuel use) are also opposed to this project. So what did Liberty Natural Gas do? They tried to convince the antis that importing gas from Trinidad is better than using nasty, evil, vile “fracked” gas (see Liberty Says “Non-Fracked” Trinidad Gas Better than Marcellus Gas). Antis aren’t falling for it. In fact, in something of a funny reversal, antis are now using the argument that since we have so much fracked gas in the country (the very thing they irrationally hate), there isn’t a need for the Port Ambrose terminal. You know, this is the one time we’re in agreement with them!…
    Read More “Antis Continue Campaign Against Off-Shore LNG Terminal Near NY/NJ”

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    Time to Enter YOUR Company in the 2016 Northeast Oil & Gas Awards

    Oil & Gas AwardsIt’s time to enter the 2016 Northeast Oil & Gas Awards contest! As in previous years, Marcellus Drilling News is pleased to promote the annual Oil & Gas Awards for the northeast, held each year in Pittsburgh. The 2016 event will be held on March 30 and nominations for 25 different categories are now open (see the list below). It costs nothing to nominate your own company–or someone else’s company–for an award. Finalists for each award are asked to sponsor a table at a gala ball/event (that’s how the event is paid for). It’s time to take a shot at having worthy companies–yours or someone else’s–recognized for the good work done in our beloved industry…
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    IHS Bigwig Address European Petrochem Assoc with Shale Message

    Daniel Yergin
    Daniel Yergin

    Earlier this week Daniel Yergin, vice chairman of powerhouse consulting firm IHS and the Pulitzer Prize-winning author of The Quest and The Prize, delivered the keynote address at the European Petrochemical Association’s (EPCA) 49th annual meeting in Berlin (Germany). The theme of Yergin’s keynote? Energy has entered ‘new era of shale’ with big benefits for petrochemicals. Below are highlights from Yergin’s insightful keynote address, provided to us by IHS…
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  • Marcellus & Utica Shale Story Links: Wed, Oct 7, 2015

    best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: New York using more fracked gas than ever; OH judge backs NEXUS pipeline; Youngstown mayor against ‘bill of rights’; landowner royalty audits; WV severance tax revenues falling; Josh Fox wants to help oil workers by putting them out of work; FERC commissioner resigns; panic in the pipelines; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Oct 7, 2015”

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    Disaster at NY DEC: Cuomo Nominates Anti-Driller to Helm Agency

    Basil Seggos
    Basil Seggos – Nominated by Cuomo to head the DEC

    It appears that New York Gov. Andrew Cuomo is attempting to shove the teetering oil and gas industry in the state over a metaphorical cliff and put it completely out of business. Last Friday Cuomo nominated an anti-driller, Basil Seggos, to be the next Secretary of the Dept. of Environmental Conservation (DEC)–the organization that oversees oil and gas drilling in the state. Seggos will replace another anti-driller, Joe Martens, complicit in Cuomo’s decision to ban fracking. Seggos will continue and likely expand the same policies begun by Martens. Seggos previously worked for seven years as the chief investigator and lawyer (chief litigator) for the radical environmental organization Riverkeeper. That alone should disqualify him from serving in such an important position–but in New York, the inmates run the asylum. You can tell Seggos will be a disaster (for the oil and gas industry) in his new position by the list of anti-drilling organizations falling all over themselves to congratulate Cuomo on the appointment. Seggos’ appointment is another in a string of disastrous decisions by the corrupt Andrew Cuomo administration…
    Read More “Disaster at NY DEC: Cuomo Nominates Anti-Driller to Helm Agency”

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    GreenHunter Brings Final 2 Injection Wells Online in Meigs, OH

    finallyIn July MDN reported that GreenHunter Resources–the water resource, waste management, and environmental services subsidiary of Magnum Hunter Resources in the Marcellus/Utica–had brought two new wastewater injection wells online at their Mills Hunter facility in Meigs County, OH (see GreenHunter Brings 2 New Injection Wells Online in Meigs County, OH). At that time GreenHunter had four injection wells operating at the facility, with two final wells awaiting regulatory approval from the Ohio Dept. of Natural Resources (ODNR). From a press release issued yesterday by GreenHunter, it appears the final two wells at the Mills Hunter facility are now online and operating. The only problem is with reduced drilling in the region, there’s not enough wastewater to keep them all as busy as they’d like…
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    Make or Break Week for PA Gov Wolf’s High Severance Tax

    make or breakThis week should tell us a lot about the future of a severance tax in Pennsylvania–at least the near-term (this year) future. PA Gov. Tom Wolf, a failed governor who’s only been in office for 10 months, is demanding a high severance tax on top of an already high impact fee (the equivalent of a severance tax) in order to pay back teachers’ unions for voting him into office. He’s playing a dangerous game of chicken–dangerous for education, dangerous for all of the agencies without money to operate, dangerous for every citizen in the Commonwealth. Today Wolf will float yet another budget calling for a high severance tax and it will get voted on tomorrow. Prospects for Wolf passing his budget, even though he’s been lobbying RINOs in the House and Senate (bribing them with political promises), don’t look good. In an act of supreme hubris, Wolf says if he loses this vote, Pennsylvania loses. We say it’s the opposite…
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    PA Acid Mine Water Bill Passes, Waiting for Gov. Wolf’s Signature

    acid mine waterIn June MDN told you about an idea “whose time has come”–legislation in Pennsylvania that will allow drillers to use acid mine water (AMW) from abandoned coal mines as fracking fluid, reducing the need for using fresh water sources (see New Bill Allows Drillers to Use Acid Mine Water for Fracking in PA). The legislation, sponsored by Sen. Camera Bartolotta (Republican), would let drillers use AMW without fear that they will be sued from sun-up to sundown by radical environmentalists. The current laws on the books say “if you touch it, you own it” and drillers are afraid if they begin using AMW, litigious lawyers for Big Green groups like Food & Water Watch, Delaware Riverkeeper, Sierra Club, National Resources Defense Council and others will take them to court and try to bankrupt them–claiming the AMW, even if treated, is causing negative environmental and health issues. Senate Bill (SB) 875 would fix that problem. VERY good news: SB875 was passed by both the Senate and House last week and sent to Gov. Tom Wolf’s desk for his signature. Since Wolf plays dirty and uses political blackmail (holding up the state budget over a Marcellus severance tax), there’s no telling when, or if, he’ll sign SB875 since it “benefits” the Marcellus industry…
    Read More “PA Acid Mine Water Bill Passes, Waiting for Gov. Wolf’s Signature”

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    Did US Army Corps of Engineers Just Make it Harder for O&G in PA?

    what just happenedIt appears to us that the U.S. Army Corps of Engineers (USACE) has just made it harder for drillers and pipeline companies operating in Pennsylvania to do their job–although we’re not 100% sure. Last week the USACE issued a public notice about revisions to the Pennsylvania State Programmatic General Permit – 4 (PASPGP-4). According to the legal beagles at Babst Calland, “PASPGP-4 authorizes the discharge of dredged or fill materials and the placement of temporary or permanent structures that result in impacts to one acre or less of waters of the United States, including jurisdictional wetlands.” The USACE has added more threatened and endangered species, as listed on the Pennsylvania Natural Diversity Inventory (PNDI), to the PASPGP-4, meaning there’s more bats and bugs and other critters drillers and pipeliners must avoid when moving earth and cutting down trees. At least that’s what we think is happening. The USACE says it’s “streamlining” the review process. Looks to us like what they’re doing is adding more hoops the oil and gas industry must jump through…
    Read More “Did US Army Corps of Engineers Just Make it Harder for O&G in PA?”