Marcellus Drilling News

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

When Do/Don’t Municipal Frack Bans Violate the U.S. Constitution?
October 17, 2013October 17, 2013

When do (and when don’t) municipal bans on natural gas drilling violate the U.S. Constitution? It’s a sticky question and it takes an ace legal mind to tackle this broad and complex topic. An ace attorney has done just that. MDN friend and litigator Ken Kamlet from the Binghamton law firm Hinman, Howard & Kattell (HHK) does a deep dive on the topic of when town bans violate the Constitution. This is not a theoretical exercise for Kamlet. The lawyers at HHK are currently suing (on behalf of landowners) the village of Sidney, NY (Delaware County) over a ban they passed in February 2013 (Exclusive: Sidney, NY Sued by Landowners over Fracking Moratorium).

HHK is also the law firm that sued the City of Binghamton, NY over their illegal frack moratorium and won (see NY Judge Throws Out Binghamton Fracking Moratorium). HHK knows the law, knows the Constitution, and is well-equipped to write about when bans do, and do not, violate the Constitution…
Read More “When Do/Don’t Municipal Frack Bans Violate the U.S. Constitution?”
Chesapeake Energy | Energy Companies | Industrywide Issues | Ohio | Statewide OH | Utica Shale | Wastewater

How Much Wastewater Does Chesapeake Recycle in the Utica Shale?
October 17, 2013October 17, 2013

According to a story from top notch reporter Bob Downing at the Akron Beacon Journal, Chesapeake Energy is being a bit cagey about how much fracking wastewater they actually recycle in their Utica Shale drilling operation. Chesapeake is the #1 driller in the OH Utica Shale. How much they actually recycle is important.

In previous statements Chesapeake has said they are recycling 88% of their Utica Shale wastewater. Is that accurate? And where are they recycling all of their wastewater? Inquiring minds want to know…
Read More “How Much Wastewater Does Chesapeake Recycle in the Utica Shale?”
Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Marcellus Credited with 90% of New Jobs in PA 2005-2012
October 17, 2013October 17, 2013

Does Marcellus Shale drilling generate real jobs? You bet it does. Try this statistic on for size: Of all the new jobs created in Pennsylvania from 2005-2012, 90% of them were created by the drilling industry. No, that’s not a misprint. Those numbers come from analysts at Raymond James, a highly respected financial services firm. In addition, new hires in core Marcellus Shale industries were up 35% in the second quarter of 2013 compared to the second quarter of 2010. As one RJ analyst said, “unconventional oil and gas is not just a flash in the pan.” It will be a job-creating engine for decades to come.

When someone tells you drilling doesn’t create jobs, tell them to go fly a kite…
Read More “Marcellus Credited with 90% of New Jobs in PA 2005-2012”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 17, 2013
October 17, 2013October 17, 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, Oct 17, 2013”
Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing
October 16, 2013October 16, 2013

Will the northeast ever get an ethane cracker plant to handle the massive amount of ethane being produced in wet gas areas of western PA, eastern OH and the panhandle of WV? Some people think so (MDN among them), although each year that goes by without a cracker it seems less likely because of new ethane and NGL pipelines being built to haul ethane out of the northeast. Still, people “in the know” say they have a feeling. Kind of reminds us of the old BJ Thomas song, “Hooked on a Feeling.”

Yesterday at the Wheeling (WV) Economic Outlook Conference, Don Rigby, executive director of the Wheeling-based Regional Economic Development Partnership, was the latest “in the know” person to say he’s hooked a cracker feeling…
Read More “I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing”
Blue Racer Midstream | CNX Resources | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines

CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream
October 16, 2013October 16, 2013

CONSOL Energy issued an extensive operations update yesterday, for the quarter ending Sept. 30. The company says they sold more natural gas (and coal) than they had expected to during the quarter. They also said they have just signed an agreement with Blue Racer Midstream to ramp up infrastructure buildout for CONSOL’s drilling in Ohio’s wet gas area–specifically in Noble County, OH.

During 3Q13 CONSOL drilled 15 horizontal wells–12 of them targeting the Marcellus Shale, 3 of them in the Utica Shale. Here’s everything you ever wanted to know about CONSOL’s northeast drilling for 3Q13…
Read More “CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream”
Butler County | Crime | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Washington County

2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme
October 16, 2013October 16, 2013

A month ago MDN told you that one of two landmen accused of stealing mineral rights from unsuspecting landowners by forging signatures and using fake companies had plead guilty (see PA Landman Pleads Guilty to Defrauding Landowners, Off to Jail). His name is William Ray and he’ll not only do three years in the big house, he’ll also pay back over a half million dollars of what he stole.

At the time, Ray’s partner in crime (and the mastermind behind the scheme), Derek Candelore, plead not guilty. Yesterday Candelore plead guilty to one charge of mail fraud…
Read More “2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme”
Bradford County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Are Marcellus Drilling Regs Killing Conventional Drilling in PA?
October 16, 2013October 16, 2013

A pair of north central PA Republicans from the Pennsylvania House of Representatives along with “hundreds” of independent oil producers are sending a message to PA politicians and regulators: You can’t use the same broad brush you’re using with unconventional shale drilling to paint the traditional conventional drilling in the state. The independents say that new regulations crafted for Marcellus Shale (deep) drilling should not apply to conventional (shallow) drilling and if this ongoing “unfair” situation continues, it will drive conventional drilling in the state, which has been around for 150 years, out of existence.

Do the independents have a point? Are they an “apple” being regulated by unfair and overly strict “orange” standards? Or to change up the metaphors, is this a case of the buggy whip industry grumbling about those newfangled automobiles?…
Read More “Are Marcellus Drilling Regs Killing Conventional Drilling in PA?”
Energy Services | Industrywide Issues | Pennsylvania | Regulation | TerrAqua Resource Mgmt | Washington County | Wastewater

TerrAqua Gets Conditional Approval for PA Frack Wastewater Plant
October 16, 2013October 16, 2013

MDN has been watching the progress of a proposed new frack wastewater processing facility proposed by TerrAqua for Smith Township (Washington County), PA. A month ago the town held a somewhat bumpy public hearing about the proposed facility (see TerrAqua a Half Step Closer to New Frack Wastewater Facility).

Last night Smith Township supervisors voted to grant a zoning variance to TerrAqua for the plant–contingent on the plant gaining approval from the state Dept. of Environmental Protection and provided TerrAqua agrees to the same terms MAX Environmental follows in that vicinity–terms that limit the number of trucks coming and going and the hours of operation. TerrAqua says they need to study the variance before commenting…
Read More “TerrAqua Gets Conditional Approval for PA Frack Wastewater Plant”
eCORP International | eCORP Stimulation Technologies | Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues

ecorpStim Tries to Interest France in Waterless Fracking Tech
October 16, 2013October 16, 2013

In April, MDN told you about progress with a new waterless method of fracking that uses 100% nonflammable propane fracking fluid. The technique was developed by eCORP Stimulation Technologies, a subsidiary of eCORP International (see Non-Flammable Liquid Propane Used for 100% Waterless Fracking). ecorpStim, as they call themselves, doesn’t seem to have had much luck in finding drillers in the U.S. to use their technology–no doubt because it’s so cheap to use water for fracking.

Sensing there may be an opportunity, ecorpStim recently went on a field trip–to France–to present their technological “break through” to members of the French Parliament. You may recall the French Supreme Court recently upheld a countrywide ban on hydraulic fracturing–at least fracking that uses water (see France’s Fracking Ban ‘Absolute’ After Court Upholds Law). Since water fracking isn’t an option in France, ecorpStim is hoping the French will consider a slightly more expensive, non-water option for fracking…
Read More “ecorpStim Tries to Interest France in Waterless Fracking Tech”
Energy Companies | Halcon Resources | Ohio | Trumbull County | Utica Shale

Halcon’s $70M Oil/Rail Terminal in Lordstown, OH Advances
October 16, 2013October 16, 2013

In July, MDN told you about Halcon Resources’ plan to build a $70 million oil storage and rail-loading terminal in Lordstown, OH (see Halcon Resources Plans $70M Oil Terminal in Lordstown, OH). That project will be one step closer to reality with the completion of a 12,000-foot loop train track at the Ohio Commerce Center in Lordstown (Trumbull County).

An update on the Halcon project…
Read More “Halcon’s $70M Oil/Rail Terminal in Lordstown, OH Advances”
Hydraulic Fracturing | Industrywide Issues | Landfills | Ohio | Soil | Statewide OH

Radioactive Bilge Emanates from ‘Radioactive Waste Alert’ in OH
October 16, 2013October 16, 2013

Unfortunately the old Chinese proverb has come true: We live in interesting times. We live in a day and age when thinking, contemplation and logic are foreign concepts to many people. Instead, we get the pablum of headlines, sound bites and billboards. The latest pristine example of non-thinking comes from a billboard near Columbus, OH that targets a business doing great work for the shale drilling industry by recycling drill cuttings–the leftover dirt and rock from drilling a bore hole.

The billboard (see our Pinterest pics on right) says, “Don’t Frack My Water – Protect Columbus” and is sponsored by “RadioactiveWasteAlert.org” with a picture of a girl drinking what appears to be contaminated water from a bottle with a radioactive symbol on the side. It’s aimed at stopping Ohio Soil Recycling from doing the important work that they do (see OH Company Turns Drill Cuttings into Clean Fill Dirt in 24 Hours). What’s the average Columbus commuter going to think? Hopefully at least some of them won’t fall for this cheap shot–this un-thinking gimmick–from a fringe group of anti-fossil fuel nutters…
Read More “Radioactive Bilge Emanates from ‘Radioactive Waste Alert’ in OH”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Oct 16, 2013
October 16, 2013October 16, 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: Wed, Oct 16, 2013”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?
October 15, 2013October 15, 2013

In August MDN told you about a shake-up taking place at the Heinz Endowments with the firing of “longtime head” of environmental grant making for the Heinz Endowments, Caren Glotfelty (see Heinz Endowments Fires Head of Enviro Grants – Change Coming?). The story is an important one because of the role played by the Heinz Endowments in funding anti-fracking causes. Earlier this year, president of the Heinz Endowments, Bobby Vagt, dared to strike up first a conversation, then a pact, with drillers and a few other brave environmental organizations to found the Center for Sustainable Shale Development (see Important: Drillers & Enviros Form New Group, Launch Cert Program). Apparently Vagt’s “sell-out” to the drilling industry was the beginning of the end and the enviro-nut long knives came out for him (see Heinz Endowments President Owns $1.2M in Kinder Morgan Stock).

In what appears to be a move by one of the Endowments’ board members–one of the Heinz boys, Andre–Vagt announced he is “retiring” from his job as president of the Endowments. Looks like the long knives finally found their mark…
Read More “Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Can Donald Trump Save Fracking in NY?
October 15, 2013October 15, 2013

While NY Gov. Andrew Cuomo continues to delay his decision about whether to go up against the nutjobs of his own party–to “man up” and allow fracking, or not–he continues to dream about running for president in 2016. But before he can do that, he has to win re-election as governor of NY next year, in 2014. A shoo-in? A fait accompli? Foregone conclusion? Don’t be so sure. There are a LOT of angry landowners in Upstate NY. And now, there’s Donald Trump.

Rumors are circulating that NY state Republicans are teeing up Trump to run against Cuomo next year, and so far, Trump is not saying “no” to the idea. Could it be that Trump will be the savior of fracking in NY?…
Read More “Can Donald Trump Save Fracking in NY?”
Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Unexpected News in Latest BH Rig Counts – 42% Jump in Rigs in…
October 15, 2013October 15, 2013

From time to time MDN takes a look at the Baker Hughes “rig count”–the number of rotary drilling rigs operating in Pennsylvania, Ohio and West Virginia. The “received wisdom” in the drilling industry that is as goes the rig count, so goes production numbers. Used to be if you saw a decrease in the number of rigs in a given geography, maybe 6-12 months later you would see a corresponding decrease in production from that area. No more. Shale drilling has changed all of that. Nowadays the rig counts go down, and production (in PA anyway), doubles! Why? A lot of wells previously drilled are still waiting to be hooked up to pipelines and begin their production. And shale well production is different from conventional well production. The once simple measurement of more rigs/more production (and the reverse) no longer holds completely true.

Rig counts are still, however, a useful metric to track. And sometimes they reveal something surprising, as MDN found out today in reviewing the latest numbers. Rig counts are an indication of where there is an increase (or decrease) in new drilling activity. Landowners eager to have a well drilled on their property can use rig counts to gauge how quickly (or not) that may happen. Supply chain companies that sell services to drillers are also interested in tracking rig counts. So what, exactly, did MDN find that surprised us? The big surprise is where rig counts have recently spiked–significantly. It’s in a Marcellus/Utica state you may not expect…
Read More “Unexpected News in Latest BH Rig Counts – 42% Jump in Rigs in…”