Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Launches Public Comments on New Drilling Rules, Roadshow
December 13, 2013December 13, 2013

The PA Dept. of Environmental Protection (DEP) and their Environmental Quality Board are launching a 60-day public comment period starting Dec. 14 to allow PA residents to comment on proposed new Marcellus Shale drilling rules called for under the Act 13 law passed in early 2012. The new rules will address well pad construction, water impoundments, pipelines and surface impacts of drilling, among other things. It is a major revision to PA’s drilling rules.

In addition to emailing or sending in hard copy, the DEP will conduct a series of road shows in various locations to discuss the proposed new rules. They’re also holding two online webinars (Dec. 19 and Jan. 3). The announcement from the DEP about the proposed new rules and the comment period:
Read More “PA DEP Launches Public Comments on New Drilling Rules, Roadshow”
Industrywide Issues | Jefferson County (PA) | Pennsylvania | Wastewater

Innovative Wastewater Treatment Plant Looks for Investors
December 13, 2013December 13, 2013

Pssst. Hey buddy, have a spare $25 million to invest? Chief chemist and president of ProChemTech International (Brockway, PA), Tim Keister, says he’s figured out how to build a shale drilling wastewater plant that can make $35,000 per day and not charge drillers a dime to treat their wastewater. Keister’s innovative design removes barium and radium and turns them into barium sulfate. From barium sulfate you can make products like rubber, glass and drilling mud. Extract the barium and radium, create barium sulfate, sell it. Easy!

Except it’s not so easy when you’re the first. Investors are risk-averse and Keister has had a hard time finding someone to build the plant–so he’s going to build the first one himself. But there’s still that little problem of needing 25 mil…
Read More “Innovative Wastewater Treatment Plant Looks for Investors”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA RINO Rep. Gene DiGirolamo Proposes Marcellus Tax Hike – Again
December 13, 2013December 13, 2013

Seeking to kill the economic miracle that has been shale gas drilling in Pennsylvania, the so-called “brave” Republican (really a RINO) PA Rep. Gene DiGirolamo is proposing a 4.9% tax on the value of natural gas extracted and sold from state wells. That’s in addition to the impact fee/tax already in place. The new tax would supposedly raise another $640 million of money that politicians like DiGirolamo could get their grubby hands on to parcel out in vote buying schemes (rather than continue to do the hard work begun by Tom Corbett in reigning in spending).

DiGirolamo has been pedaling higher taxes on Marcellus drilling since at least Sept. 2011 (see Marcellus & Utica Shale Story Links: Thursday, Sep 22, 2011). Such a plan doesn’t stand a prayer of a chance while Republicans hold both houses and the governor’s chair. Which raises the question of why DiGirolamo would float this plan again now. Likely a sleazy political ploy to curry favor with his Democrat friends because he figures they’ll be taking over next year after the election…
Read More “PA RINO Rep. Gene DiGirolamo Proposes Marcellus Tax Hike – Again”
Industrywide Issues | Lackawanna County | Luzerne County | Pennsylvania | Taxation

Specifics on Marcellus $ Helping to Clean Chesapeake Bay Pollution
December 13, 2013December 13, 2013

A month ago MDN brought you the good news that money raised as part of the Marcellus Shale impact fee in PA is being used to launch a project that is hoped will clean up the single largest source of pollution for the Chesapeake Bay–the Old Forge borehole near Scranton, PA (see Marcellus Drilling Helps Fix Biggest Polluter of Chesapeake Bay). The initial story outlines the high level plan by Susquehanna Mining Solutions LLC to build a treatment plant that will convert acid mine water coming from the borehole (some 60-100 million gallons per day) into clean water for other uses.

The original article was short on specifics. We now have a few of the specifics for how Susquehanna Mining Solutions will perform this miracle. It’s no small task…
Read More “Specifics on Marcellus $ Helping to Clean Chesapeake Bay Pollution”
Meetings

Jimmy Goes to the Big Apple: Platts Global Energy Outlook Forum
December 13, 2013December 13, 2013

Road trip! Yesterday MDN editor Jim Willis made the trek from Binghamton to New York City to attend the Platts Global Energy Outlook Forum. In attendance and speaking were some of the top minds and leaders on energy in the world. The keynote speaker at lunch was Dr. Ernest Moniz, newly appointed Secretary of the Dept. of Energy by President Obama. The conference was not about shale per se, but shale had a starring role nonetheless.

Jim is going to write up his conference notes (some very interesting quotes you’ll enjoy), and he will write up his notes from the Moniz lunch speech, which centered on the Obama administration’s response to global warming, and present it next week (sit tight, it will be worth the wait). In the meantime, Platts issued the following press release summarizing yesterday’s event…
Read More “Jimmy Goes to the Big Apple: Platts Global Energy Outlook Forum”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Dec 13, 2013
December 13, 2013December 13, 2013

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: Fri, Dec 13, 2013”
Energy Companies | Pennsylvania | Susquehanna County | WPX Energy

WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp
December 12, 2013December 11, 2013

Is Franklin Township in Susquehanna County, PA the new Dimock? Let us explain. You may recall that 17 families in rural Dimock, PA claimed that nearby natural gas drilling by Cabot Oil & Gas led to water well contamination from methane (natural gas) and/or fracking chemicals. The history of Dimock is well-established on this blog and in numerous other places. It was made famous by Josh Fox and his Gasland fictional movies. No one seriously believes the water in Dimock was contaminated with fracking chemicals because it’s never happened–anywhere. Not once. Methane, on the other hand, is a different matter. It can and does migrate–sometimes.

To this day Cabot disputes that their drilling led to methane contamination of Dimock water wells. The PA DEP investigated and said it did. The case is now closed on Dimock (see Cabot Buys Second Dimock, PA Property on Carter Road). One of the more theatrical aspects of the Dimock story was when Cabot removed DEP-ordered water tanks, called water buffaloes, from homes that refused to allow Cabot to install DEP-ordered methane filtration systems. Some of the families, like Craig and Julie Sautner, were suing Cabot for big bucks and didn’t want their water supply fixed. When Cabot came to remove the water buffaloes, it was a media circus complete with celebrities bleating on camera. In some respects, a town about 15 miles from Dimock–Franklin Township–is turning into the same media circus. Different driller, different families, same issue of removing water buffaloes…
Read More “WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Tompkins County

Groton, NY (borders Dryden) Votes DOWN 6-Month Frack Moratorium
December 12, 2013December 11, 2013

Whattya know? Maybe there is hope for the People’s Republic of Tompkins County, NY after all. Tompkins County is home to anti-drilling organizations including the partisan Park Foundation and the many people it funds–like Cornell professors Tony Ingraffea and Robert Howarth, and the wife and husband lawyer team of Helen and David Slottje, who make mischief at local town board meetings, encouraging them to institute illegal bans and moratoriums on fracking.

One of the the towns the Slottjes duped into passing a ban was Dryden, NY–in Tompkins County. The Dryden ban has been appealed all the way to the highest court in New York, the Court of Appeals where the case will be heard in early 2014. We’re sure the taxpayers of Dryden enjoy footing that portion of the legal bill not generously covered by the Park Foundation. Anywho, the town next door to Dryden is Groton. The Groton town board voted down a proposed six-month moratorium on fracking at their Tuesday night meeting. It’s a small victory for democracy and right thinking. Too bad some of Groton’s common sense wouldn’t rub off on their Dryden neighbors…
Read More “Groton, NY (borders Dryden) Votes DOWN 6-Month Frack Moratorium”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

The Secret Back Room Deal to Raise OH’s Utica Shale Tax
December 12, 2013December 11, 2013

Ohio’s top two industry trade groups, the Ohio Oil and Gas Association (OOGA) and the Ohio Petroleum Council (OPC) are not “on the same page” when it comes to the Republican raise-taxes-on-Utica-drilling plan 3.0. MDN recently told you about the latest incarnation of Gov. John Kasich’s desire to “spread the wealth around” in classic socialist fashion (see OH Repubs Offer Excuses Why This Time High Utica Taxes are OK). OOGA was in on the secret dealings to craft the latest tax hike (shame on them). OPC was not and so far they’re staying neutral and not giving their support. Not yet anyway. Let’s hope it stays that way.

The story about OOGA vs OPC in raising Utica Shale taxes:
Read More “The Secret Back Room Deal to Raise OH’s Utica Shale Tax”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

PA Sen. Bob Casey “Pressures” Shell to Commit to PA Cracker Plant
December 12, 2013December 11, 2013

This is rich. MDN has long chronicled the flakiness of U.S. Bob Casey (Democrat, PA) on the shale drilling issue. On one hand he wants the heavy hand of the federal government to regulate drilling, violating the Constitution in doing so. On the other hand, like a typical sleazy politician, he has his hand out and wants the money and jobs shale drilling generates (see The Two Faces of Sen. Robert Casey (D-PA) on Shale Drilling).

The hand-stuck-out-for-money-and-jobs Casey is manifesting again at present. He just fired a letter off to Shell to “pressure them” into making a decision about moving forward with an ethane cracker in PA. Which is kind of funny, that he’s posturing and preening and pretending to goad Shell along when Shell is already well along and likely to move forward with no regard for what Bob Casey wants or thinks (see Odds in Favor of a PA Ethane Cracker Just Went WAY Up). What a waste of a Senate seat. Here’s what the preening Bob Casey said to Shell…
Read More “PA Sen. Bob Casey “Pressures” Shell to Commit to PA Cracker Plant”
Air Quality | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Washington County

MarkWest Chartiers Twp Plant Sued for “Trespassing” on Air Space
December 12, 2013December 11, 2013

Two couples with the same last name and who both live near the MarkWest gas processing plant in Chartiers Township (Washington County), PA are suing MarkWest claiming the plant is causing air pollution and is “trespassing” on their air space. MDN has chronicled problems at the plant in the past (see MarkWest Served Violation Notice for Chartiers Processing Plant).

Both couples, with the last name Sethman, report a variety of physical ailments they claim are caused by air pollution from the plant…
Read More “MarkWest Chartiers Twp Plant Sued for “Trespassing” on Air Space”
Energy Companies | Halcon Resources | Industrywide Issues | Lease & Royalty Payments | Litigation | Mercer County | Pennsylvania

Mercer County Landowners Suing Halcon Get Small Victory
December 12, 2013December 11, 2013

Last fall Halcon Resources signed letters of intent with landowners in Mercer County, PA to lease some 60,000 acres for drilling, via CX Energy (Co-eXprise). In September 2012 Halcon called a meeting with landowners and told them they would only proceed with leasing about half of the acreage (see Halcon Says No Drilling for Half of Mercer County Landowners). Needless to say the half that were jilted didn’t take it well. In fact, they felt defrauded by Halcon and filed a class action lawsuit in federal court against Halcon.

The U.S. Court of Appeals Third Circuit has just passed the case (“remanded” it) back to a Pennsylvania trial court, which is a small victory for the landowners. How so? Well, it’s complicated, but we’ll do our best to explain it…
Read More “Mercer County Landowners Suing Halcon Get Small Victory”
Pennsylvania | Statewide PA

Marcellus Shale Coalition Appoints New Slate of Officers
December 12, 2013December 11, 2013

A new chairman of the board has taken the helm at the Marcellus Shale Coalition (MSC). The MSC, arguably the Marcellus’ premier trade group, announced yesterday that their new chairman will be Scott Roy, vice president of government and regulatory affairs for Range Resources Corporation. In addition to Scott, the positions of vice chair, treasurer and secretary will also change.

Stepping into the vice chair position is Heather Lamparter, VP at EXCO Resources; treasurer will be Mark Hager, senior government affairs rep at Williams; and secretary will be Gary Smith, VP & general manager for EOG Resources. Scott Roy as chairman of the board should not be confused with MSC president Dave Spigelmyer who is responsible for running the day to day operations of the organization. Here’s yesterday’s MSC board announcement:
Read More “Marcellus Shale Coalition Appoints New Slate of Officers”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Dec 12, 2013
December 12, 2013December 12, 2013

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: Thu, Dec 12, 2013”
Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

New Drilling Regulations Coming to OH in Next 30-60 Days
December 11, 2013December 11, 2013

The Ohio Department of Natural Resources (ODNR) will soon release new rules for shale drilling in the state. The new rules will cover well pad construction, wastewater treatment and a number of other aspects of drilling. According to ODNR’s Chief of the Division of Oil and Gas Resources Management, Rick Simmers, the new rules are “good stuff.” The question is, good for who?

Some of the new rules will be released later this month and some in early January. Others will take longer. The route to becoming enforceable “law” (or “regulation” which is the same thing) is somewhat circuitous. The rules will be subject to a 30-day public comment period and will go before a special committee with members from both the OH State Senate and House before final approval and acceptance…
Read More “New Drilling Regulations Coming to OH in Next 30-60 Days”
Energy Companies | Ohio | PDC Energy | Statewide OH | Statewide WV | Taylor County | Utica Shale | West Virginia

PDC Energy to End Marcellus Drilling in 2014, Continue in Utica
December 11, 2013December 11, 2013

It’s the “Get out an update on what we plan to do in 2014” time of year. Doesn’t exactly roll off the tongue like “It’s the most wonderful time of the year!” End of year is not only about holidays but also about telling investors what they can expect next year–how a company plans to make money and provide a good return. Even though these statements are sometimes routine and dry, often you find interesting details when you pick through them. Like yesterday’s 2014 guidance statement from PDC Energy, a driller in both the Marcellus and Utica Shale.

In a low-key but to us surprising announcement, PDC’s statement says they will suspend drilling in the Marcellus in 2014. They plan to finish drilling four wells already under way in Taylor County, WV and then not drill any more Marcellus wells, but instead concentrate their time and effort on the Utica Shale and on Colorado’s Wattenberg Field. For those interested in Marcellus and Utica drilling, reading these updates is anything but dry! Take time to look over PDC’s plans for 2014, particularly their plans for the Utica…
Read More “PDC Energy to End Marcellus Drilling in 2014, Continue in Utica”