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    Gastar Helpfully Provides Update on Williams WV Pipeline Outage

    Last Saturday a 12-inch natural gas pipeline owned by Williams Partners in Marshall County, WV ruptured and caught fire, likely due to a landslide (see Williams Pipeline Rupture/Fire in Marshall County, WV). Not long after, one of (perhaps the) driller affected by the pipeline outage, Gastar, announced it had shut in their wells in the area–a necessary precaution to warn investors that certain targets may not be met because of the pipeline outage (see Gastar Shuts-in Marshall County Wells Due to Pipeline Explosion).

    We continue to get our best information on the pipeline outage from…Gastar! We haven’t spotted a single public statement from Williams about the outage (Williams PR department, get on the ball!). Yesterday Gastar said most of their gas is flowing again, through a different Williams pipeline. Gastar also says Williams told them the ruptured/down pipeline should be repaired and operating again in “approximately three weeks.” Thanks Gastar, for keeping us up to date on the Williams pipeline…
    Read More “Gastar Helpfully Provides Update on Williams WV Pipeline Outage”

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    JLCNY Says Nirav Shah Departure Won’t Slow Down Fracking Lawsuit

    Ya just can’t keep good help if you only pay ’em $130,000 a year. So says the man-child who is governor of New York–Andy Cuomo. In a vainglorious attempt to spin the very bad news (for him) that his top health official has had enough of his dithering ways, Gov. Cuomo yesterday told reporters the ongoing so-called health review of new fracking rules has nothing to do with Shah’s departure. Shah is heading as far from New York as he can get, to California. Cuomo’s convinced we’re all idiots and don’t see the truth (see our article from yesterday, State Health Com. Nirav Shah has Enough of Andy Cuomo, Leaving NY).

    In comments yesterday Cuomo said Shah makes $130,000 per year, when it’s actually $136,000. Like most politicians, Cuomo plays fast and loose with numbers. The health department first said Shah is leaving in June, but then Shah said no, I’m outta here on May 4th, and so the health department backpedaled, sputtered, and said well yeah, we guess it is May 4th after all. What a dysfunctional joke (that’s not very funny for the residents of NY). The Joint Landowners Coalition of New York (JLCNY) is certainly not amused. They issued a statement yesterday that their lawsuit against Shah (and/or his replacement), and Gov. Cuomo and DEC Commissioner Joe Martens will proceed full speed ahead, regardless of Shah’s departure. We hope the JLCNY continues their lawsuit against Shah all the way to California for his collusion with Cuomo and Martens to prevent drilling for the past year and a half…
    Read More “JLCNY Says Nirav Shah Departure Won’t Slow Down Fracking Lawsuit”

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    EIA: Marcellus #1 Proved Reserves Shale in U.S., PA #2 for Gas

    Yesterday the U.S. Energy Information Administration (EIA), our favorite government agency (the only one worth funding in our opinion) issued its annual U.S. Crude Oil and Natural Gas Proved Reserves for 2012 report (full copy embedded below). It takes a long time to crunch and analyze the numbers, hence these kinds of reports are 2 years delayed. But wow! What an interesting report. It shows that in 2012 the Marcellus Shale became the nation’s largest shale play–at least by proved reserves–surpassing the Barnett Shale in Texas, the former reigning champ of proved reserves. Pennsylvania rocketed from fifth to second largest gas reserve state. The report also shows the Texas Eagle Ford Shale play passed the North Dakota Bakken to become the largest tight oil shale play in the U.S. That’s the big big news. But there’s plenty of smaller big news too.

    First up, what the heck is proved reserves? The EIA defines it this way: “Proved reserves are volumes of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions.” You might think proved reserves are our best guess as to how much total oil or gas is down there, based on sound scientific data. But you would be wrong. It’s what’s down there that we’re willing to go get based on today’s economics. Important distinction. What that means is the commodity price for oil and gas has a lot to do with proved reserves numbers. The oil and gas can be locked away down there (indeed it is down there), but if we’re not willing to get it out of the ground because we can’t make a profit–it might as well not exist…
    Read More “EIA: Marcellus #1 Proved Reserves Shale in U.S., PA #2 for Gas”

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    OH Severance Tax Blues – Kasich Says the Tax Trains’ a Comin’

    With apologies to the memory of the late, great Johnny Cash, to be sung to the tune of Folsom Prison Blues…

    I hear the severance tax train a comin’
    It’s rolling round the legislative bend
    And I ain’t seen a better vote-buying scheme since, I don’t know when
    I’m stuck in Tea Party prison, and time keeps draggin’ on
    But that severance tax train keeps a rollin’, on down to a legislative vote.

    RINO Gov. John “foreigner hunter” Kasich is so excited, he may pee his pants. After a year of debating stupid Tea Party Republicans, his administration is “really close” to reaching an agreement with those in his own party to start soaking the Utica Shale drilling industry in his state. Really close. Really. But, you’ll have to wait until next month to find out just how much the industry will get soaked. They want to announce it and slam bam vote on it before anyone can raise the alarm. So deliberative. So open and transparent. What paragons of authority and leadership to emulate. What jerks.

    Here’s the story of a RINO governor and Republicans who apparently are willing to cave on their principles…
    Read More “OH Severance Tax Blues – Kasich Says the Tax Trains’ a Comin’”

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    Sham Study by UK Authors Says PA Shale Wells Fail at High Rate

    A new “study” is starting to make the rounds in the incestuous echo chamber of anti-drillers and their sycophantic supporters in the mainstream media. The study, titled “Oil and gas wells and their integrity: Implications for shale and unconventional resource exploitation” is published in the “peer-reviewed” Marine and Petroleum Geology journal (full copy of the study embedded below). It’s written mainly by UK authors, with a couple of US authors thrown in to sweeten the pot. None of them are from universities in Pennsylvania. Here’s a typical headline generated by this new study: “Pennsylvania Fracking Wells Are Dangerous, Study Finds.” Which is a lie. But the media hopes you won’t read beyond the headlines. We actually do.

    Here’s the first thing to know about this “study”: There is no (that is zero) new data in the study. It’s a review of other people’s data and research in “the published literature and online.” That is, the authors didn’t do any actual science or field work–they just read what anti-drilling wackos have published on websites and in print and rounded it all up and called it science. The second thing to know, regarding their evaluation of the data from Pennsylvania, is this: “the search criteria used to categorise leakage incidents in Pennsylvania followed the approach described by [Anthony] Ingraffea.” That is, the authors intentionally chose to ignore the better data of what constitutes well leakage in Pennsylvania tabulated and tracked by the agency charged with monitoring it (the PA DEP) and instead chose to use Cornell anti-drilling professor Tony Ingraffea’s wild interpretations of the DEP data. That right there tells you all you need to know about this sham of a “study”…
    Read More “Sham Study by UK Authors Says PA Shale Wells Fail at High Rate”

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    State Health Com. Nirav Shah has Enough of Andy Cuomo, Leaving NY

    keep calm and blame the whipping boyApparently Dr. Nirav Shah, State Health Commissioner in New York, is tired of being Andrew Cuomo’s tool–Andy’s whipping boy. For more than a year Cuomo has been able to hide behind an unfinished so-called public health review of proposed new fracking rules, proposed by the state’s Dept. of Environmental Conservation (DEC). In what can only be called a conspiracy, DEC Commissioner Joe Martens asked Shah for a review of the SGEIS with an eye to how shale drilling may (or may not) affect this nebulous concept called “the public health.” It’s now obvious that both Martens and Cuomo had set up Shah as the fall guy, requesting (we suspect) that Shah intentionally delay his findings. Shah has been carrying their water for more than a year now. Recently Norse Energy and the Joint Landowners Coalition of New York sued Cuomo, Martens and Shah to force them to finish the health review and release the new drilling regs (see D-Day: JLCNY Files Lawsuit Today Against Cuomo, Martens, Shah).

    Yesterday Shah announced he is stepping down from his position in June. He’s had enough of this incestuous mess called New York State politics, and enough of the man-child Andy Cuomo–a pathetic politician who can’t make a decision about fracking. The reason we suspect Cuomo asked Shah to delay the results of his “health review” is because a) Shah originally said the review would be done within several weeks, which has turned into more than a year, and b) Shah is leaving to become Chief Operating Officer of the Kaiser Foundation Health Plan in southern California–at double or triple his current salary. It’s a huge promotion. You think Kaiser would hire a new COO who is inept and can’t complete a simple and straightforward health review? No way–which tells you Shah was delaying at the request of Cuomo and Martens. And he’s now had enough…
    Read More “State Health Com. Nirav Shah has Enough of Andy Cuomo, Leaving NY”

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    PA DEP Says Chevron Blocked Access to Greene County Well Fire

    On Feb. 11 Chevron’s Lanco 7H well in Greene County, PA exploded and caught fire. Although it’s not clear what caused the explosion, workers were connecting the well to a gathering pipeline (i.e. welding) and it’s not much of a stretch to connect the dots. One of the workers at the site tragically lost his life (see Remains of Chevron Contractor Found at Greene County Well Site). The fire at Lanco 7H spread to the well next it–Lanco 6H. After five days the twin fires were put out and eventually the wells were capped (see Chevron Well Fire Update: 2nd Well Capped, Work on 7 Wells Stopped).

    Both the PA Dept. of Environmental Protection (DEP) and Chevron continue to investigate what went wrong. However, three weeks ago the DEP issued a preliminary Notice of Violation about the accident and fires (see it embedded below). The surprising revelation in the NOV is that Chevron blocked DEP personnel from accessing the site for two days while the fire burned. DEP personnel, by law, have carte blanche access to any well anywhere at any time. Chevron was no doubt trying to protect the DEP agents, however, blocking them from the site clearly rankled the agency and will now be part of a fine they eventually assess on Chevron…
    Read More “PA DEP Says Chevron Blocked Access to Greene County Well Fire”

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    The Skeletons Knocking Around in Chesapeake Energy’s Closet

    An article on The Motley Fool investors website takes a look at Chesapeake Energy and the potential skeletons that may be hiding in their closet. The purpose of the article is to make the point that potential suitors who may want to buy Chessy may want to reconsider that concept because of Chessy’s skeletons–much to dismay of corporate raider Carl Icahn who has invested a lot of his own money on the gamble that he can hack off entire pieces of Chessy and make it an attractive buy-out option, boosting his own fortune even more (Tolkien’s Smaug sitting atop mountains of ill-gotten gold comes to mind).

    So which skeletons do we already know about in Chessy’s closet, and which ones don’t we know about (yet)?…
    Read More “The Skeletons Knocking Around in Chesapeake Energy’s Closet”

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    Silica Dust Exposure Topic A at ShaleSafe Conference in Wheeling

    The West Virginia Oil and Natural Gas Association hosted their inaugural ShaleSafe Conference and Expo at Oglebay Park in Wheeling earlier this week (Monday through Wednesday). What makes the conference interesting and unusual is that the entire event was focused on the topic of safety in shale plays–particularly the Marcellus and Utica. If you hang around with oil and gas people for any length of time, the topic of safety comes up. Contrary to the picture anti-drillers try to paint, the oil and gas industry is laser focused on worker and public safety. And that focus showed at the conference.

    The highlight of the conference–the main focus–was a panel on silica (sand) exposure, which was held yesterday (Wednesday). That panel featured Michael Breitenstein from the National Institute for Occupational Safety and Health (NIOSH) and Dr. Michael McCawley, chairman of the Department of Occupational & Environmental Health Sciences in the School of Public Health at West Virginia University. McCawley, you may remember, has been beating the drum for some time that setbacks for drilling in WV are not enough and that air pollution coming from drilling operations is a serious issue (see WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites). Silica dust is a serious issue, and both speakers were there to put the fear of God into the audience about it…
    Read More “Silica Dust Exposure Topic A at ShaleSafe Conference in Wheeling”

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    WV Conference Speaker Says PA is Tops with Spill Containment Regs

    The main focus for the West Virginia Oil and Natural Gas Association’s ShaleSafe Conference and Expo at Oglebay Park in Wheeling this week was silica dust exposure (see MDN’s related article published today). However, another session was a close second as Topic A–the session on spill containment. The sole presenter on spill containment was Beth Powell from New Pig Energy. Spill containment became a huge topic for everyone in West Virginia after a chemical spill related to coal mining affected the drinking water for 300,000 WV residents earlier this year. In the aftermath of that spill, the WV legislature passed new regulations for chemical storage tanks–regulations that affect not only the coal industry guilty of the spill, but also the shale drilling industry too (see Impact of WV’s New Chemical Tank Law on Marcellus Drillers).

    Ms. Powell had some interesting things to say about spill containment–and she should know since well pad containment systems are New Pig’s business. Among her comments, Powell said Pennsylvania’s Dept. of Environmental Protection (DEP) regulations are far more strict than either West Virginia or Ohio when it comes to spills and spill containment. Now that’s something you don’t hear from anti-drillers in PA who try to paint the DEP as lax, derelict in their duty, and in bed with the drilling industry…
    Read More “WV Conference Speaker Says PA is Tops with Spill Containment Regs”

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    Plastics, Low Electric Rates from Utica/Marcellus Help NE OH Cos.

    How can northeastern Ohio, once thought to be the epicenter for Utica Shale drilling but now yesterday’s news, still profit from the shale drilling revolution happening in the southern part of the state? As Dustin Hoffman’s character was told in The Graduate, one word: plastics. Plastics and petrochemicals were the main focus of the “Plastics Products from Utica Energy” event held in Canton, OH on April 7th. Ethane from Utica and Marcellus Shale drilling can be cracked to produce ethylene, the raw material used in making plastics. With two cracker plants planned in the region–one in Beaver County, PA and one in Parkersburg, WV–petrochemical manufacturers in northeastern OH are in a great geography to take advantage of shale drilling, even if it’s not happening where they are located.

    However, plastics is not the only thing Ohio manufacturers need. They also need cheap electricity, and natural gas used to fire electric generating plants is lowering the cost of electricity throughout the region (along with lowering pollution), which is very good news for northeastern OH, giving their manufacturers a leg up on other areas…
    Read More “Plastics, Low Electric Rates from Utica/Marcellus Help NE OH Cos.”

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    2 Spineless PA RINOs Join Call for High Marcellus Severance Tax

    Several mainstream media outlets are trumpeting that “Republicans join the call for tax on Marcellus drillers.” Of course you have to read the fine print of the story to learn the so-called Republicans, which are really Republicans-In-Name-Only (RINOs), are really just two Republicans from the Philadelphia area where there is no drilling. They both want to stick their fingers into the pockets of landowners and drillers so they have funny money to throw around and buy votes with. Yes, we’re talking to you Gene DiGirolamo (Bucks County) and Tom Murt (Montgomery/Philadelphia counties). Shame on both of you.

    The real story is this: Two spineless RINO sellouts from the Philly area “join the call” for obscene taxes on the drilling industry. There is no mass movement among Republicans in Pennsylvania to kill off the drilling industry with high severance taxes being advocated by just about every Democrat legislator and Democrat candidate in the state. We sure hope the people of PA have wised up to the Dem drivel about taxing one industry (shale drilling) to give the Dems (and RINOs) boatloads of money to squander on pet projects–the chief pet project being to put money into the pockets of people who will vote for them…
    Read More “2 Spineless PA RINOs Join Call for High Marcellus Severance Tax”

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    Oglebay Resort Profits from NE Shale in a Way You’d Never Guess

    The Oglebay Resort & Conference Center by all accounts is a spectacular venue and the perfect place to hold a conference. With 1,700 acres near Wheeling, WV, Oglebay offers 271 rooms, 54 standalone cottages, a spa, indoor pool, jacuzzi, sauna, top notch cuisine and dining…you get the picture. The West Virginia Oil & Natural Gas Association (WVONGA) chose Oglebay to host its first-ever ShaleSafe Conference & Expo, held earlier this week (see a pair of MDN stories about the event in today’s lineup).

    The purpose of this story is to highlight how Oglebay is benefiting (profiting!) from the shale drilling industry. Given their great location, in the middle of shale drilling on all sides (SW PA, WV, OH), it’s no surprise that Oglebay is happy to host a number of shale and oil & gas related events. It’s an important new revenue stream for them. With pristine countryside and unparalleled views, with old-growth trees and wildlife frolicking around the 1,700 acres, you would certainly want to protect and maintain it. But wait, what’s this? Oglebay leased their land for drilling in 2009 (gasp) and they now receive royalty checks too? That’s right–and when you visit Oglebay with its pristine countryside and unparalleled views, you’d never know it unless they told you…
    Read More “Oglebay Resort Profits from NE Shale in a Way You’d Never Guess”

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    Bad to Worse: PA Royalty Owner Asks Court for Chessy Class Action

    from bad to worseChesapeake Energy continues to find itself under the metaphorical gun with respect to royalty payments in Pennsylvania. The PA legislature is considering a bill (HB 1684) that would plug a legal loophole and require Chesapeake and other drillers to pay landowners a 12.5% minimum royalty regardless of post-production costs (see PA NARO Alert: Tell Your State Rep to Vote YES on HB 1684). Landowners in Bradford County sued Chessy held an anti-Chesapeake rally to further express their extreme displeasure (see Bradford PA Landowner Rally over Chesapeake Royalty Shenanigans). Gov. Corbett asked PA’s anti-drilling Attorney General, Kathleen Kane, to investigate (showing how bad it’s gotten–to stoop to asking her to get involved).

    And now from bad to worse: a company that owns royalty rights in PA, Scout Petroleum, claims they’ve been screwed out of royalties by Chesapeake and has asked a judge for a full refund and to force Chesapeake into arbitration and grant class-action status to the whole, festering mess…
    Read More “Bad to Worse: PA Royalty Owner Asks Court for Chessy Class Action”