Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

JLCNY Lawsuit Imminent – But Not the One You Thought
February 3, 2014February 3, 2014

Like all things legal–and like all things NY–this story is a tad complex, so please bear with us. If you have an interest in whether, and when, NY begins shale fracking, this is an important story. For some time MDN has told you about the lawsuit that has been prepared and waiting (for funds) to move forward by the Joint Landowners Coalition of New York (JLCNY). Their lawsuit was to focus on “takings,” the legal concept that New York State has denied landowners the sovereign right to use their own property as they see fit–to lease it for shale drilling–and by doing so the state owes them just compensation for “taking” away that value (see our story from last April: JLCNY Provides Extensive Update on NY “Takings” Lawsuit).

The JLCNY has changed legal strategies–that is the big news. Instead of pursuing the “takings” lawsuit at this point, which is a long, expensive legal process, the JLCNY has instead decided to change their legal focus to an Article 78 lawsuit. Sound familiar? Recently Norse Energy hired Albany attorney Tom West to file an Article 78 on behalf of their now bankrupt company (see Norse Energy Sues Gov. Cuomo to Force Release of Fracking Regs). By adding the voice of 70,000 landowners to a second Article 78 lawsuit, which is a legal way of forcing Gov. Cuomo, DEC Com. Martens and Health Com. Shah to perform their sworn duties, the JLCNY believes this new legal strategy will offer a more effective, quicker resolution to the long-standing moratorium (now in place over 5 1/2 years). We have a copy of the “demand” letter by the JLCNY to Martens, a press announcement and a fundraising appeal from the JLCNY below…
Read More “JLCNY Lawsuit Imminent – But Not the One You Thought”
Anti-Drilling/Fossil Fuel | Broome County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

Binghamton Newspaper Censors JLCNY Lawsuit News
February 3, 2014February 3, 2014

Once again a glittering example of why mainstream media news sources, like the Binghamton Press & Sun-Bulletin, are dying. Fast. Because they simply ignore (suppress? censor?) news that doesn’t fit their own anti-drilling philosophy.

You might think that an organization that boasts 70,000 members throughout New York State (the Joint Landowners Coalition of New York, or JLCNY) that has just sent a letter to the governor, the head of the Dept. of Environmental Conservation and the state health commissioner telling them they’re about to get sued (see our companion story today) might be newsworthy. Further, if the chief lawyer and the president of said group (representing 70,000 landowners) called a press conference to explain the upcoming lawsuit–you might think it would at least rate a paragraph or two in the local newspaper of record. Right? If you live in the Binghamton area, that answer would be–wrong…
Read More “Binghamton Newspaper Censors JLCNY Lawsuit News”
Elk County | Energy Companies | Industrywide Issues | Pennsylvania | Seneca Resources | Wastewater

New Frack Wastewater Injection Well Coming to Elk County, PA
February 3, 2014February 3, 2014

Looks like more injection wells are on the way in Pennsylvania. Injection wells are used to pump leftover frack fluid (and brine, naturally occurring salt water that comes of the hole longer after fracking is done) deep underground for safe disposal. There are a lot of injection wells in Ohio, and PA drillers who don’t recycle or find another way of disposing of wastewater typically ship it to OH. (Vol. 3 of the Marcellus and Utica Shale Databook, out in a week, contains what we believe the most comprehensive list of frack wastewater and landfills in existence. Pre-order a copy now!)

Seneca Resources has just received federal approval to convert an old vertical natural gas well in Elk County, PA into an injection disposal well. The Elk injection well will pump up to 60,000 gallons per day of wastewater and brine into the Elk 3 sandstone formation. However, before they begin operations at the Elk injection well, Seneca still needs an approval from the state Dept. of Environmental Protection…
Read More “New Frack Wastewater Injection Well Coming to Elk County, PA”
Allegheny County | Crime | Industrywide Issues | Litigation | Pennsylvania | Westmoreland County

Chapter Closed: 2 Landmen Sentenced to Federal Pen for Fraud
February 3, 2014February 3, 2014

The conclusion of an ignominious episode for landmen. Last year MDN told you about two rotten apples in the barrel–landmen who concocted a scheme to steal ownership rights from unsuspecting landowners and sell those rights to drillers, pocketing the money for themselves. There were caught. One fessed up right away–it took the mastermind behind it a bit longer but he finally confessed too (see 2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme).

Last Friday a federal judge in Pittsburgh sentenced Derek Candelore (33, of Jeannette, PA) to three years, four months in federal prison. His sidekick William Ray (29, of Monroeville, PA) got eight months in the federal pen…
Read More “Chapter Closed: 2 Landmen Sentenced to Federal Pen for Fraud”
Erie County (NY) | New York | Statewide NY

Run Donald Run! Will “The Donald” Challenge Frackless Andy in NY?
February 3, 2014February 3, 2014

Could Donald Trump slay the evil frackless dragon Smaug (otherwise known as Gov. Andy Cuomo)? Only if he runs for governor. Last October we told you of rumors circulating that Donald Trump was considering a run against sitting Gov. Andrew Cuomo (see Can Donald Trump Save Fracking in NY?). He’s frankly the only person with enough name recognition that could even possibly pose a serious challenge to Cuomo. Soon after we ran that story, however, Trump seemed to tamp down the rumor.

But what’s this? It appears The Donald is reconsidering and may yet run (which we earnestly hope he does)…
Read More “Run Donald Run! Will “The Donald” Challenge Frackless Andy in NY?”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Soil | Statewide PA

Range Floats Plan to Use Drill Cuttings to Build Roads
February 3, 2014February 3, 2014

This one is sure to set the anti-frackers into a tailspin. Range Resources has applied to the PA State Dept. of Environmental Protection (DEP) to begin using drill cuttings (leftover rock and dirt that comes out of the ground) as an “aggregate” or material to build roads to drilling sites. There’s nothing wrong with drill cuttings, but sometimes there are low levels of radioactivity found in them–far below any kind of health threat. But we can see the headlines now: Radioactive Roads! Run for the Hills! Drillers Want to Poison Mother Earth! That’s how the shrill anti-fossil fuel lobby will try and spin this.

We’re sure Range knows they’ve opened a can of worms with this one. Let’s see how it all plays out in the coming 60 days, the time period authorized by the DEP to receive public comments on the proposed plan…
Read More “Range Floats Plan to Use Drill Cuttings to Build Roads”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

The Secretive Ways of NYS Health Com. Nirav Shah
February 3, 2014February 3, 2014

It’s no secret that New York State Health Commissioner Nirav Shah is having his chain yanked by his boss, Gov. Andrew Cuomo, on the issue of hydraulic fracturing. The Health Department has been involved every step of the way with the Dept. of Environmental Conservation (DEC) over the past 5 1/2 years, evaluating proposed drilling regulations with an eye on whether there are so-called public health impacts and ramifications. But at the eleventh hour last year, Cuomo instructed Shah to do yet another review, and that review, which at one point Shah said was just “weeks away” from being completed, is still not done more than a year later. Why? Cuomo told him to slow it down. That’s the only explanation that makes sense.

Recently Shah as quizzed about the process he’s using to “evaluate” fracking regulations and potential health impacts. Shah has been super secretive about what he’s up to. He’s gone on record saying the process he’s using should not be transparent as it’s being done–only at the end. Anti-drillers are as frustrated with him as pro-drillers. Both sides have sued Shah (for different reasons) and according to anti-drilling former Gannett reporter Tom Wilbur, Shah is about to be forced to reveal what he’s been up to…
Read More “The Secretive Ways of NYS Health Com. Nirav Shah”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Anti-Drillers Target PA DEP Official for Elimination
February 3, 2014February 3, 2014

The anti-drilling long knives have come out for a mid-level PA Dept. of Environmental Protection (DEP) official because he dared to invest money in a mutual fund that buys energy stocks, investing in a PA driller (Cabot Oil & Gas, man knows a good thing when he sees it), and for an investment in a company that manufactures natural gas vehicle engines.

Said official, Executive Deputy Secretary for Administration and Management Jeffrey Logan, has nothing to do with permitting or reporting or anything with the oil and gas end of the DEP’s business. There’s no “insider knowledge” he gets because of his position. But that’s OK–it’s time for a little anti-drilling bloodsport. Let’s shove him out on the stage in the limelight and begin target practice to see if we can bring him down…
Read More “Anti-Drillers Target PA DEP Official for Elimination”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Feb 3, 2014
February 3, 2014February 3, 2014

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Mon, Feb 3, 2014”
Economic Impact | Energy Services | Industrywide Issues | MarkWest Energy | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

MarkWest: 7 New NE Plants Online in Past 4 Mos, 17 More Coming!
January 31, 2014January 31, 2014

There are a number of midstream (pipeline and processing plants) companies operating in the Marcellus and Utica region. The country’s largest midstream company, Kinder Morgan, increasingly has a presence in the region. Joint ventures of various kinds, like Blue Racer Midstream (Dominion and Caiman Energy) are important new–and big–players. Williams Partners is one of the biggest. But if we had to identify which midstream company has the most assets, the most presence in the region, we’d have to say it’s MarkWest Energy. Yesterday MarkWest issued an operational update on their Marcellus and Utica projects–and frankly, it’s really impressive. This is a “time to crow about what we’ve done and will do” update. They’ve earned the right.

Over the past four months MarkWest has brought seven new, major projects online: 5 new cryogenic processing plants (separates wet gas into two streams, methane and NGLs), and 2 new fractionation plants (further separates the NGLs into their components, like ethane, butane and propane). Each one of these projects represents hundreds of millions of dollars of investment and hundreds of jobs. Here’s the kicker: MarkWest has another 17 major processing and fractionation projects under construction! Incredible. Below is the update issued yesterday by MarkWest which identifies many of projects and customers. It’s well worth your time to read:
Read More “MarkWest: 7 New NE Plants Online in Past 4 Mos, 17 More Coming!”
Blue Racer Midstream | Economic Impact | Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | Processing Plants

Blue Racer Exec Says NE Midstream Needs Another $30B+ Investment
January 31, 2014January 31, 2014

Blue Racer Midstream CEO Jack Lafield spoke at the Hart Energy Marcellus-Utica Midstream Conference and Exhibition in Pittsburgh yesterday, and he had some interesting things to say. As for the $10 billion in infrastructure already invested in the Marcellus/Utica, Lafield says that’s “only a fraction” of what’s needed for investment in the coming years. Lafield says at least $30 billion more needs to be spent “just to keep up with the demand” for infrastructure. Yikes! He also said in his 42 years in the industry, “this is about as good as it gets.”

Also speaking yesterday was MarkWest Vice President of Corporate Development, Scott Garner, who said that MarkWest is spending $2 billion this year on the Marcellus/Utica. As MDN found with our list of 111 midstream/infrastructure projects published in our Marcellus and Utica Shale Databook Volume 2, we estimated there’s at least $40 billion in projects planned or already in process over the next five years or so. Here’s more pickings from yesterday’s conference:
Read More “Blue Racer Exec Says NE Midstream Needs Another $30B+ Investment”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH Gov. John Kasich: Goldilocks and the Utica Shale Tax
January 31, 2014January 31, 2014

John “foreigner hunter” Kasich, who sounds more like a Democrat every day, says he won’t accept a “puny” severance tax increase on Utica Shale drilling. He wants him a big, fat, mother of a tax increase on Utica drilling–and nothing less will do. In comments yesterday, Kasich (strangely) started to channel fairy tales, telling reporters that tax increases on drilling are “…kind of like porridge. It can’t be too cold, it can’t be too hot, it’s got to be just right.” Wow, Kasich would make Karl Marx proud.

Here’s the latest back and forth between Kasich and his own Republican Party, a party ready to cave (yet again) on the issue of taxes:
Read More “OH Gov. John Kasich: Goldilocks and the Utica Shale Tax”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Regulation | Roads | Wastewater | West Virginia

GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag
January 31, 2014January 31, 2014

GreenHunter Water, which is building a frack wastewater recycling (and potentially barging) facility in Wheeling, WV, has hit a snag. So far, it’s a pretty big snag. Last year the company received approval from the Wheeling Planning Commission to proceed with the plant, after initial resistance. So far, the WV Dept. of Environmental Protection (DEP) has not issued any permits because they won’t and don’t need to review the plant until it’s ready to start operating. Then they’ll visit and evaluate.

However, the WV Dept. of Transportation’s Division of Highways (DOH) has rejected GreenHunter’s plan to have trucks with frack wastewater entering and exiting the plant. The DOH rejection happened last August and according to the DOH, they haven’t heard a thing from GreenHunter since…
Read More “GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag”
Industrywide Issues | Pennsylvania | Public Opinion | Statewide PA

Statewide PA Poll Shows Strong Majority Want Marcellus Drilling
January 31, 2014January 31, 2014

The Democrat candidates running in the primary for governor in Pennsylvania, all of whom (with maybe one exception) support less Marcellus drilling in the state, including a draconian moratorium, might want to pay attention to the results of the recent statewide poll conducted by Franklin & Marshall College. It shows 68% of Pennsylvanians support Marcellus Shale drilling. They WANT the gas industry in the state. It shows the wacko fringe objectors to be 27%. You do the math and see how you win by bashing shale drilling in PA.

Here’s a summary of the results from the latest F&M poll:
Read More “Statewide PA Poll Shows Strong Majority Want Marcellus Drilling”
Devon Energy | Energy Companies

Utica Driller Devon Energy Picks Up 2 New Board Members
January 31, 2014January 31, 2014

Devon Energy announced earlier this week that they’ve added a pair of drilling industry veterans to their board of directors. The additions are “immediate” and include Barbara M. Baumann, 58, a former BP Amoco executive who currently serves as president and owner of Cross Creek Energy Corporation, and John E. Bethancourt, 62, a retired Chevron executive. Devon is a major acreage holder in the Utica Shale with 157,000 acres under lease.

Does this sudden, with no warning, addition signal problems or issues? We don’t think so, but we don’t know. We haven’t come across any scuttlebutt about Devon–they seem to be doing well, focusing largely on oily shale plays, including the Utica. A couple of years ago the company picked up $2.2 billion from Chinese oil major Sinopec International Petroleum Exploration Production Corp. in a joint venture deal (see China Makes $2.2B Investment in U.S. Shale, Including Utica). Last October Devon more or less bought out Crosstex Energy (see Crosstex Energy Gets a Name Change, Merger with Devon Proceeds). Seems like everything is going well, full speed ahead with no corporate raiders lurking in the background. Whew. Here’s the board announcement from earlier this week:
Read More “Utica Driller Devon Energy Picks Up 2 New Board Members”
Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Reaction to TGP’s Planned Pipeline Across Massachusetts
January 31, 2014January 31, 2014

For the past month and a half, MDN editor Jim Willis hasn’t seen a day without a story about how natural gas prices have skyrocketed in New England (and even around New York City) because there aren’t enough natgas pipelines to the region. Not enough infrastructure. We find it amusing that the governors of six New England states recently sent a letter to their regional coop asking for help in getting more pipelines to the region (see Blue State Blues: 6 New England States Want New Natgas Pipeline). One of those states–Vermont–passed a law banning fracking (see Vermont Becomes First State to Ban Fracking). And yet Vermont wants that cheap, fracked gas from the Marcellus! How’s that for hypocrisy?

Knowing that New England tilts pretty far to the political left (and is mostly anti-fracking), we found it interesting when we spotted a story about communities in Massachusetts being approached by Kinder Morgan and their Tennessee Gas Pipeline with plans to extend the pipeline through their communities–across the entire state. How will they respond? Mass protests (pun intended)? Keep the evil, fracked gas away? No fracking way jest keep them pipes away? Interestingly, no. The attitude (so far) is more like, let’s find out where you want to run the pipeline and we’re sure we can accommodate it. Wow! What a change in attitude a price hike of $100 per thousand cubic feet of natural gas can create…
Read More “Reaction to TGP’s Planned Pipeline Across Massachusetts”