Marcellus & Utica Shale Story Links: Wed, Oct 9, 2013
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Litigation | Pennsylvania
Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner
This is not the kind of story we enjoy sharing with you. Hilcorp, a major driller in the Utica and Marcellus Shale, has decided to take what we consider “the low road” and is using a 1961 Pennsylvania law to sue a landowner to allow them to drill under their property. It’s called “forced pooling,” “compulsory integration,” and a variety of other terms. MDN does not support it. Our argument is simple: My neighbor should not have the right to tell me I can’t drill on and under my land, and I should not have the right to force it on my neighbor if they don’t want it. We believe it’s the only defensible position in the drilling debate.Regardless, Hilcorp has moved forward with a legal action against a landowner in Lawrence County, PA who owns just 14.6 acres in a drilling unit leased by Hilcorp–and that 14.6 acres apparently prevents Hilcorp from drilling. So off to court they go…
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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA
Dow Disingenously Tells Shell to Forget About a PA Cracker Plant
Manufacturing and labor leaders held a confab yesterday in Pittsburgh to discuss jobs, the economy, and how the Marcellus is lifting both in southwestern Pennsylvania (see our companion story today). One of the speakers at yesterday’s meeting was Peter Molinaro, vice president and senior advisor on government affairs for The Dow Chemical Co. One of Dow Chemical’s chief rivals and competitors is Shell Chemical. Shell, as MDN readers are well aware, is currently conducting a multi-year evaluation of whether or not to build a regional ethane cracker plant in Beaver County, PA, outside Pittsburgh about 30 miles.
It probably won’t surprise you that Dow’s Molinaro said at yesterday’s meeting that PA probably doesn’t need a cracker plant after all. Are Molinaro’s comments about a PA cracker wise and measured counsel from an industry participant who has a feel for the economics of U.S. manufacturing and what it truly needs? Or are his comments trash-talking a competitor in hopes of scuttling a deal and eliminating competition so more ethane will be pipelined to the Gulf–where Dow’s cracker plants are located? You decide…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA
PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided”
MDN editor Jim Willis had the great pleasure of meeting and speaking with former PA Dept. of Environmental Protection (DEP) Sec. Michael Krancer at Shale Insight 2013 a few weeks ago. Jim doesn’t mind telling you what he told Sec. Krancer to his face: “I’m a huge fan!” Krancer did some great work at the DEP during his too-short tenure. Since then, Krancer has moved on to private practice in Philadelphia, working on energy law for powerhouse law firm Blank Rome.
Sec. Krancer minces no words, which is what we love about him. He’s also extremely smart. And, he’s no fan of recently introduced legislation by PA Sen. Jim Ferlo who wants to ban fracking in Pennsylvania–Ferlo calls it a moratorium but it’s “open-ended,” meaning it’s really a ban (see PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill). Krancer penned a devastating rebuttal to Ferlo’s bill and indeed to obtuse anti-fossil fuel advocates throughout Pennsylvania. Sec. Krancer sent along a copy of his sterling piece, first published on the Law360 website, with permission for MDN to distribute it far and wide. Forthwith, from the sharp pen of Sec. Krancer…
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Open-Air Frack Wastewater Impoundments Coming Soon to Ohio
Coming soon to a neighborhood near you in eastern Ohio: frack wastewater ponds? Maybe. Ohio regulators with the Ohio Dept. of Natural Resources (ODNR) say they will soon approve, permit and regulate frack wastewater ponds or “impoundments”–something currently not allowed in Ohio. The impoundments hold millions of gallons of frack wastewater–a kind of temporary holding container so drillers can re-use the liquid for more fracking. The impoundments, typically close to drilling operations, cut down on truck traffic and when built and maintained properly, are completely safe (according to drillers).
However, some people are concerned about open-air impoundments and the possibility that nasty chemicals may escape–either through the air or into the ground. Valid concerns?…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Sullivan County
Debra Winger: Vote Early & Vote Often – Against Fracking in NY
Hollywood actress Debra Winger, who not only has an apartment in New York City but owns a “farm” in Sullivan County, NY (Upstate for the uninitiated), is on a mission. Her mission is to get her other Hollywood and Downstate pals that also own a place in Sullivan County to register to vote there. Register once? Register twice? We’re not sure she’s advocating voter fraud (although she may be).
Winger wants Downstaters to register to vote in Sullivan County so they can pack local town boards with anti-drillers–just in case Gov. Andrew “Spineless” Cuomo suddenly grows a spine and allows shale drilling…
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Allegheny County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Washington County | Westmoreland County
Pittsburgh Summit: Marcellus the WD-40 of SW PA Rustbelt Economy
Yesterday a group of manufacturing and labor leaders gathered at the International Brotherhood of Electrical Workers headquarters on Pittsburgh’s South Side to talk about the creation of more manufacturing jobs in the greater Pittsburgh area–specifically about how Marcellus Shale is changing the landscape and is a tremendous jobs creator in the region. Several publications attended and each put their own angle on what was said at the meeting.
MDN picks through the stories to bring you the bits and pieces we found interesting–news about how the Marcellus is changing the picture in southwest PA and beyond. One of those interesting tidbits: the chairman of the PA Public Utility Commission said Marcellus Shale gas has been responsible for power prices dropping an average 52% across the state–for everyone. Incredible! And a comparison between the Marcellus and WD-40…
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Marcellus & Utica Shale Story Links: Tue, Oct 8, 2013
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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U.S. Passes Saudis (Oil) & Russia (NatGas) to Become #1 Worldwide
None other than the U.S. Energy Information Administration (EIA) released a report on Friday that says the United States will pass Saudi Arabia to become the #1 oil producing country in the world, and will pass Russia to be the #1 natural gas producing country in the world–THIS YEAR. How? Why? Shale energy, of course. No wonder the Saudi’s are worried (see Top Saudi investor says US energy boom could doom kingdom’s economy) and even the braggadocio Vladimir Putin is showing signs of concern (see Worried by shale gas, Putin calls for new energy strategy).This is really big news folks…
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NY Frack Ban Cases Make (Glacial) Progress, Some Dates to Share
In August MDN told you that New York’s highest court, the Court of Appeals, would hear the twin cases of Dryden and Middlefield (see BREAKING: NY Court of Appeals will Hear Dryden/Middlefield Case). There are two things that keep shale drilling away from New York right now: (1) Gov. Andrew Cuomo’s spineless inability to take a stand and do the right thing to allow it, and (2) the Dryden/Middlefield cases. MDN believes the court cases are the more important of the two. Cuomo will come around sooner or later–he has to. However, if the court says a majority vote from a local town board can ban fracking thereby denying property rights for landowners throughout an entire township–that’s the death knell for drilling in New York. No sizable driller will gamble with hundreds of millions in lease money to see a local town simply vote to shut it all down. Too risky. (For our analysis of the New York situation, see the post: Anti-Drillers Attempt a Brave Face with NY Appeals Court Decision.)
So the Dryden/Middlefield cases are of supreme importance in the fight for property rights and to allow drilling for New York’s landowners. What’s the latest in those all-important cases? They’re moving along at the speed of a glacier–but at least we now have some dates to share…
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Carrizo’s New Drilling Strategy: Closer Well Spacing
An analysis by brokerage firm Sterne Agee turns up an interesting strategy change by Carrizo Oil & Gas. Carrizo is a driller in the Utica Shale. They also have active drilling in the Eagle Ford “oily” play (in Texas).
The interesting change-up in their strategy? In the Eagle Ford Carrizo is experimenting with well spacing. Currently the company spaces wells on 105-acre sections. But lately they’re trying it on 80-acre sections, which allows them to place more wells on their leased acreage. Will they use the same strategy in the Utica?…
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Strange Twist: Rep. Jesse White Calls His Own Words “Hate Speech”
For some time MDN has chronicled the sad story of western PA Rep. Jesse White, an anti-driller with a grudge against Range Resources who turned to using fake online IDs in order to trash talk his own constituents (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry). White eventually (months later) saw the error of his ways when he was outed at Harvard summer school and his “peers” told him “Jesse, you done wrong” (see PA Rep. White Says Fake IDs were “Error in Judgment”).
So get this. Some of White’s constituents, rightly outraged that he is still in office, put his own fake ID words on a big poster board and showed it at an information table set up at the local Fall Festival at an area park. Local Democrat officials were miffed that someone had the audacity to tell the truth about one of their own–in public! Some of the local Dems resigned from their respective boards in protest over the booth. Jesse called his own words on that poster “hate speech.” Huh? That’s right–the fact that someone took his exact words and showed them to local residents (because the media continues to fail to do its job), and White said it’s hate speech. Yeah Jesse, we’re glad you agree that what you previously said is indeed “hate speech”…
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American Energy Partners | Carroll County | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale
Aubrey Leases More Land for Drilling — in the Northern Utica!
The puzzle pieces continue to fall into place with respect to the deals being done by former Chesapeake Energy CEO Aubrey McClendon in the Utica Shale. Last week MDN told you about a joint venture between McClendon’s new company, American Energy, and Red Hill Development, to lease land for drilling in southeastern Ohio–counties like Guernsey and Harrison (see McClendon’s Utica Company Does JV with OH Driller, Drilling Soon). We now know about a second joint venture–this one with Great River Energy–a new production company formed through a partnership between McClendon’s American Energy and Texas firm Orange Energy Consultants.
The surprise about this new jv? They’re leasing land in Columbiana and Carroll counties, north of what is thought to be the “sweet spot” in the Utica wet gas area. Looks like Aubrey just can’t stay away from the northern Utica!…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Inergy | New York | Schuyler County
Walkin’ and Talkin’ and Prayin’…To Seneca Lake?
Saying that “every body of water has a spirit” and attempting to communicate with that spirit, later this week a small group of (wacko) anti-drillers intend to walk 80 miles around Seneca Lake, NY to pray to the lake spirit that no evil fracking comes to harm the little water nymphs that live in the lake. Or something like that.
We long ago gave up on trying to figure out these people…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Susquehanna County
Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism”
What’s this…one of the stars of Gasland II, someone who trash-talked the shale drilling industry in Dimock, PA has changed sides? Yep. Well, sort of. Victoria Switzer has given up what she calls “tunnel vision” and has adopted “realism.” She says, “Realism is good.” She no longer calls for a halt to drilling in PA and instead wants to ensure it’s done safely–by working with industry and regulators. Welcome to logic and sanity! Glad to have you on our side.
Watch out Josh Fox: Switzer is not the only former anti-driller now whistling a different tune…
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Crestwood/Inergy Complete Their Merger Today, Worth $8B
MDN told you last week that Crestwood Midstream and Inergy Midstream were close to consummating the merger of their two companies and that it would be coming soon (see Crestwood/Inergy $7B Merger Update: Combined Boards Announced). Looks like soon is today.
A press release from Friday says today, Monday, the final paperwork will be filed and the two companies will officially be merged. The new company will take the name Crestwood Midstream Partners and starting tomorrow it will trade on the New York Stock Exchange with the ticker symbol of CMLP. The two companies together, contrary to previous estimates, will be worth $8 billion (not $7B previously reported), a true midstream giant…
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This is not the kind of story we enjoy sharing with you. Hilcorp, a major driller in the Utica and Marcellus Shale, has decided to take what we consider “the low road” and is using a 1961 Pennsylvania law to sue a landowner to allow them to drill under their property. It’s called “forced pooling,” “compulsory integration,” and a variety of other terms. MDN does not support it. Our argument is simple: My neighbor should not have the right to tell me I can’t drill on and under my land, and I should not have the right to force it on my neighbor if they don’t want it. We believe it’s the only defensible position in the drilling debate.
None other than the U.S. Energy Information Administration (EIA) released a report on Friday that says the United States will pass Saudi Arabia to become the #1 oil producing country in the world, and will pass Russia to be the #1 natural gas producing country in the world–