Marcellus Drilling News

Industrywide Issues | Regulation | Wastewater

More on Coast Guard Plan to Allow Barging of Frack Wastewater
November 4, 2013

Last week MDN told you the U.S. Coast Guard is in the process of green lighting the barge shipment of frack wastewater and brine (see Coast Guard Green Lights Barge Transport of Frack Wastewater). MDN has tracked down the 25-page proposed policy “letter” issued by the Coast Guard–the rules that will need to be followed by those who want to use barges to ship wastewater (full copy embedded below). In addition, we also discovered the website the Coast Guard is using to elicit public comments.

So far, there are nine comments on the public comment page (they’re currently displaying only nine of 29 they’ve received), all of them against barge shipment of frack wastwater (see this page). MDN editor Jim Willis filled out his own comment in support of barge shipments (which hopefully will show up soon). What about other pro-drillers who read MDN? You might want to consider stopping by this page to leave a comment that supports barge shipments of frack wastewater…
Read More “More on Coast Guard Plan to Allow Barging of Frack Wastewater”
Pleasants County | Statewide WV | West Virginia | Wood County

Drilling Creeps Southward According to WV County Clerks
November 4, 2013November 4, 2013

The land records room at the Wood County, WV Courthouse has not seen a lot of oil and gas lease research–yet. But that may change. When the records room for a given county starts to be overrun with researchers, that’s a sure sign that Marcellus (or Utica) Shale drilling is on the way. The very first thing that happens is researchers must locate who owns a given property, and then landmen head into the field to get them to sign a lease. So when a land records rooms becomes congested, you know it’s not long until leases are signed and drilling begins.

Woods County Clerk Mark Rhodes says he’s been told researchers have descended on neighboring Pleasants County (northeast of Woods) and that the crowd of researchers in Pleasants will migrate south to Woods in about six months. Here’s an inside look at the challenges faced in tracking down who owns the mineral rights for a given piece of property–especially in WV where mineral rights were severed from surface rights for many landowners years ago…
Read More “Drilling Creeps Southward According to WV County Clerks”
Economic Impact | Energy Services | Industrywide Issues | Kinder Morgan | New York | Pipelines | Statewide NY | Tennessee Gas Pipeline

Kinder Morgan Opens the Valves on TGP Northeast Upgrade
November 4, 2013November 4, 2013

Good news for those who live in the northeastern U.S.–Kinder Morgan, owner of the Tennessee Gas Pipeline, said on Friday they have thrown the switch (or in this case opened the valves) on their new $500 million Northeast Upgrade Project. The upgrade to TGP’s system in Pennsylvania and New Jersey adds 636,000 dekatherms per day of additional capacity to the system, which means more Marcellus Shale gas is now flowing to markets like New York City and the coast of NJ.

This is very good news indeed. Kinder Morgan’s announcement from Friday:
Read More “Kinder Morgan Opens the Valves on TGP Northeast Upgrade”
Accidents | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Drillers Have Extra 30 Days for New Chemical Reporting: Dec 15
November 4, 2013November 4, 2013

As MDN chronicled in September, Ohio’s anti-drillers have made everyone in the state less safe by forcing drillers to file physical paperwork with local first responders about the chemicals used and stored at drill sites–instead of filing it electronically with just the state where it could more easily be accessed (see OH Antis Force Change in Chemical Reporting, Everyone Less Safe). Dunderheads. The deadline for compliance with this new standard, being forced on Ohio by the federal government, was November 15th. Because it’s taking a bit longer than expected (surprise!), the new compliance date for OH drillers is now December 15th.

So now drillers will have to file the same information in triplicate with a) the State Emergency Response Commission, b) county local emergency planning commissions, and c) fire departments who cover the area where they are drilling. Intrepid (and very brave) first responders will then have to choose: Dial up the information via the internet from the state’s website and hope what they find there is the same as what they have in their own files, get someone out of bed at the county level to rifle through the file cabinet, or leave a first responder behind at the firehouse to rifle through their own file cabinet (instead of actually responding to the emergency). Fabulous choices. Thanks so much anti-drillers!…
Read More “OH Drillers Have Extra 30 Days for New Chemical Reporting: Dec 15”
Air Quality | Industrywide Issues | Regulation | Statewide WV | West Virginia

WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites
November 4, 2013November 4, 2013

West Virginia University professor and research Dr. Michael McCawley, chairman of the Dept. of Occupational & Environmental Health Sciences in the School of Public Health, is nothing if not persistent. Dr. McCawley is the lead researcher and author of a “raw” report that was done for the WV Dept. of Environmental Protection (WVDEP). The report was on air pollution potential around drilling sites. According to McCawley his original research was ignored by WVDEP (see Did WVDEP Ignore It’s Own Research on Shale Well Air Pollution?). A few weeks ago he took his case directly to WV legislators to tell them existing setback standards are not good enough (see WVU Prof Tells Legislators 625? Setback in Drilling is Not Enough).

McCawley continues to keep up the gentle pressure by keeping the issue alive in the press and in people’s consciousness–and frankly, we admire him for it. We don’t view McCawley as a wild-eyed anti-driller. It appears to us that he’s genuinely concerned with people’s health and with a thriving shale drilling industry. McCawley’s proposed regulatory changes are common sense and would not prevent shale drilling in WV. His latest comments…
Read More “WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Buy This Fracking Album – MDN Version
November 4, 2013November 4, 2013

As a stuffed replica of Pete Seeger shuffles out onto the stage…wait, no! That really IS Pete Seeger, about 150 years old now (too ornery to die), out there peddling a new master work of artistic quality…OK, it IS Pete Seeger, so the music ain’t all that great. Pete is on stage hawking a new anti-fracking album, called Buy This Fracking Album, that he and some of his anti-fracking buds are cooking up right now. And it’s for a very worthy cause: an attempt to ~~make a boatload of money from a bunch of suckers~~, er, call attention to the serious issue of fracking.

This calls for a press release! And so Pete & co have issued one (below). We’ve inserted MDN snarky editorial comment a) for your reading enjoyment, and b) to set the record straight and tell the truth about this album and about fracking. Enjoy…
Read More “Buy This Fracking Album – MDN Version”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

AP Apparatchik Attacks PA Republicans over NatGas
November 4, 2013November 4, 2013

The Pennsylvania Democrat Party, using their wholly-owned subsidiary–The Associated Press–issued the following piece of undisguised propaganda aimed at unsettling PA voters this week. It is a skewed bag of half-truths and lies aimed at smearing Gov. Tom Corbett and PA’s elected Republicans, implying they are in the back pocket of “big gas.”

However, the only thing that’s “big gas” is what’s blowing out the Democrat/AP press machine…
Read More “AP Apparatchik Attacks PA Republicans over NatGas”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

USA Today Picks on Demon Carbon – Says Fracking Can’t Last
November 4, 2013November 4, 2013

This is what passes as “journalism” at Gannett. (Specifically with McNewspaper–otherwise known as USA Today.) Interview someone who is ideologically driven and rigid–someone who abjectly hates fossil fuels and works for a benign sounding “institute”–oh, say like the Post Carbon Institute. (What utter folly to name it that. How about the Post Oxygen Institute? Or the Post Hydrogen Institute? Why not pick one of the other low atomic number elements? Why pick on carbon? But we digress…) This so-called expert–who is nothing of the kind–tells USA Today he’s “studied” the drilling issue and has pronounced that fracking for gas and oil is a flash in the pan, a temporary phenomenon. It’ll all be over soon. Can’t be economical much longer. Let’s all move along to “sustainable energy” nirvana now.

Then, just for good measure, sprinkle the story with a picture of two of people protesting fracking–you know, to convey the right impression that hordes of people are against this insane environmental rape of Mother Earth. Here’s the interesting thing: Ever notice the pictures they use of people protesting against fracking are always a shot of people protesting in New York State? Looks to us like it may even be the same 100-200 protesters! Same group, different angles, different events. Why is that, do you think? Could it be there are only a few hundred dedicated, full-time, paid (by groups like the Park Foundation) ~~hippie wannabes~~ people who travel around like Gypsies (or ~~pot smoking~~ Deadheads) doing this kind of protesting? JS–jest sayin’…
Read More “USA Today Picks on Demon Carbon – Says Fracking Can’t Last”
About MDN | Calendar

Calendar of Events for Nov 4-17, 2013 [Free]
November 4, 2013November 4, 2013

Below are upcoming events for this week and next.
Read More “Calendar of Events for Nov 4-17, 2013 [Free]”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Nov 4, 2013
November 4, 2013November 4, 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: Mon, Nov 4, 2013”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?
November 1, 2013November 1, 2013

On an analyst call yesterday, Shell’s outgoing CEO Peter Voser stoked fears that Shell may be ready to pull the plug on the announced ethane cracker plant planned for Monaca, PA. According to Voser, the company will make “hard choices” over the next few quarters about which projects it will fund and build. Specifically, Voser said the company had previously announced three big projects: the ethane cracker in PA, a gas-to-liquids plant in Louisiana, and an LNG plant in Canada. He said Shell cannot build all three projects. Gulp.

Voser’s comments have led to speculation that the ethane cracker plant in PA will get the ax, especially with two ethane pipelines coming online by the end of this year, and two more mixed NGL pipelines coming online in the next few years (see our companion story today, “Midstream Knife Fight”). Just last week we highlighted a story from the Wall Street Journal and industry analyst Rusty Braziel which also cast doubt on the PA cracker plant (see WSJ Says PA Cracker Plant May Not Happen After All). Are things going south–literally and figuratively–for the Shell cracker? Yesterday’s comments from Voser:
Read More “Rumor Mill: PA Ethane Cracker Plant on Shell Chopping Block?”
Air Quality | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Latest Laughable NY Anti Tactic – Not Enough Gas, Just Move Along
November 1, 2013November 1, 2013

A couple of nights ago a group of four retired anti-drilling ~~hippies~~ “smart people” tried the latest tact in the sad tale of frackless (and feckless) New York: Try to convince the unthinking masses with charts and maps and bamboozling bullcrap that recoverable, profitable natural gas stops at the border of Pennsylvania and New York. Yes that’s right folks. “Don’t bother to drill in NY because there just ain’t enough gas in the ground to make it worthwhile.” That’s what passed for smart and insightful, as delivered by Jerry Acton (pictured), Chip Northrup, Lou Allstadt and Brian Brock (anti-drillers all) at the once great Cornell University.

Master of ceremonies? The itinerant stand-up comedian and Cornell professor, Tony Ingraffea, of course…
Read More “Latest Laughable NY Anti Tactic – Not Enough Gas, Just Move Along”
Allegheny County | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania

PA Anti-Drillers Shove Their Children Before the Microphones
November 1, 2013November 1, 2013

Whether or not drilling under county parks is a good idea or not, we’ll leave for another post. We’re not at all concerned about safety or pollution–it’s safe and it doesn’t pollute. It’s just a PR headache, though, to keep pushing the boulder uphill all the time–fighting rank ignorance and outright lies. At any rate, such proposals do exist including a proposal to drill under some of the parks in Allegheny County, PA (Pittsburgh area). The energy company in question, Huntley & Huntley, has floated a proposal to county officials. They want to drill under, not on, the parks–drill under them from adjacent non-park land.

Well known anti-driller PA State Sen. Jim Ferlo convened a *@#!%-fest to complain about it. Nothing new there. What caught our eye about meeting, however, is the shameless way some anti-drillers use their own children as props–like pushing an 8 year-old in front of the cameras and microphones after filling her head with lies about how drilling will poison precious Mother Earth. It was on full display at yesterday’s Ferlo’s Follies…
Read More “PA Anti-Drillers Shove Their Children Before the Microphones”
Boardwalk Pipeline Partners | Energy Services | Enterprise Products Partners | Industrywide Issues | Kinder Morgan | MarkWest Energy | Pipelines | Sunoco Logistics | Williams

“Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?
November 1, 2013November 1, 2013

In the race to be the first pipeline to flow ethane from the Marcellus/Utica region to a cracker plant elsewhere, it looks like Sunoco Logistics may have won. Their Mariner West pipeline to Sarnia, Canada has been in testing since July and due to turn throw the valve wide open in November, according to Range Resources (see Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%). However, not to be outdone, the Appalachia to Texas Express (ATEX) ethane pipeline being built by Enterprise Products Partners now says they will go fully online in December, months ahead of schedule (see ATEX Ethane Pipeline to Begin Pumping Dec 2013, Ahead of Schedule). Both pipelines going online a month apart? We’d call it a photo finish with Mariner West winning by a nose.

Now everyone’s attention is turning to mixed NGL (natural gas liquids) pipelines. There’s another horse race heating up. Williams and Boardwalk Pipeline Partners are building the Bluegrass pipeline to the Gulf Coast (see Bluegrass Pipeline Launches Open Season, on Track for 2015 Launch). And then there is Kinder Morgan and MarkWest Utica who have joined forces to build a mixed NGL pipeline to the Gulf Coast too (see 2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf). Which one will be the first to go operational? Several analysts weigh in with their colorful opinions…
Read More ““Midstream Knife Fight” – Who Will Have 1st Operational NGL Pipeline to Gulf?”
Energy Services | Williams

Williams 3Q13: Income Down 10% Companywide, NE Still Not Profitable
November 1, 2013November 1, 2013

Williams Partners is one of the biggest midstream companies (pipelines and processing plants) in the Marcellus/Utica region. Wednesday they issued their third quarter financial and operational update in the never-ending parade of quarterly updates. And what did it show? The company overall saw a 10% decrease in net income for 3Q13 vs 3Q12, mostly because of lower prices for natural gas liquids and the compounds made from them. The news from Williams’ northeast operations is that they continue to bleed money (in the red) in 3Q13, but not as bad as 3Q12. Revenues are up in the northeast, but spending to build out their infrastructure is up more.

Below are select portions of the Wednesday update. We first provide you with the big picture introductory stuff to the set the stage, and then select out the northeast (Marcellus/Utica) sections:
Read More “Williams 3Q13: Income Down 10% Companywide, NE Still Not Profitable”
Energy Companies | Ohio | PDC Energy | Utica Shale | Washington County (OH)

PDC Energy 3Q13: “Excited” about Utica in Washington County, OH
November 1, 2013

PDC Energy, headquartered in Denver, CO, has drilling operations in both the Marcellus and Utica Shale region. In June of this year, PDC sold off “non-core” assets they owned in Colorado and said they would invest that money in drilling the Utica Shale (see PDC Energy Sells CO Assets, Will Use Money for Utica Drilling). In their third quarter update, issued yesterday, PDC is positively effusive about their first Utica Shale well in Washington County, OH. It is the first well they’ve drilled in their “southern Utica” acreage and judging by the results, they plan to drill many more in that area.

In addition to good tidings from the Utica, PDC announced they raised $276 million from floating a new stock offering. They were also listed in the Russell 2000 index. It’s been a busy three months for PDC. Relevant (Utica) portions of their 3Q13 update:
Read More “PDC Energy 3Q13: “Excited” about Utica in Washington County, OH”