Marcellus Drilling News

Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

OH Wastewater Dumper D&L Energy Gets Business Death Sentence
June 26, 2013June 26, 2013

The sad story of D&L Energy, a Youngstown, OH operator of several wastewater injection wells, has come to an ignominious end. It’s owner was (is?) Ben Lupo, who also owns sister company Hardrock Excavating, operating both companies under the D&L Energy Group umbrella. Starting last September, Lupo instructed a Hardrock employee to dump untreated fracking wastewater down a sewer drain that emptied into the Mahoning River. Lupo and the driver were found out earlier this year (see Youngstown Business Dumped >200K Gal of Untreated Wastewater).

The Ohio Dept. of Natural Resources (ODNR) promptly shut down both D&L Energy and Hardrock in February (see OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down). The shut-down led to a filing for bankruptcy in a desperate attempt to re-open and keep D&L afloat. Lupo appealed the ODNR ruling claiming D&L Energy is separate from Hardrock and just because he behaved badly at Hardrock does not mean D&L should be punished too. The Ohio Oil & Gas Commission (OOGC) has now ruled on that appeal…
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Crime | Industrywide Issues | Litigation | Mahoning County | Ohio | Wastewater

Youngstown Democrat Gets “Return to Sender” Over D&L Letters
June 26, 2013June 26, 2013

An interesting story related to the business death sentence handed down to D&L Energy by the Ohio Oil & Gas Commission (see today’s related story). State Rep. Robert Hagan (Democrat from Youngstown) tried to improperly influence the OOGC, technically a court body, by sending letters directly to members ruling on the D&L appeal. He requested that they reject the appeal. The OOGC didn’t fall for it and instead sent the letters on to the OOGC attorney and the attorney for D&L. That is, Hagan got a “return to sender” from the OOGC, along with a rap on the knuckles. He was (eventually) cleared of wrongdoing by the Ohio Ethics Commission.

Oh, this is the same Rep. Robert Hagan who wants to more than double the oil and gas drilling tax in Ohio (see Youngstown Democrat State Rep Wants to Hike Severance Tax to 7.5%). Here’s the D&L/Hagan kerfuffle:
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Energy Companies | Ohio | Rex Energy | Statewide OH | Utica Shale

Rex Energy Production Numbers/Update for Utica Shale
June 26, 2013June 26, 2013

Late last week, Rex Energy released production information for the wells they’ve recently drilled in Ohio’s Utica Shale, along with an operational update:
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Pittsburgh Paper Takes Soros Group to Task over CSSD & Heinz
June 26, 2013June 26, 2013

A few weeks ago, MDN told you about a sham report from the George Soros-backed (and anti-drilling) Public Accountability Initiative (PAI), which took aim at the new Center for Sustainable Shale Development (CSSD) claiming to “out” the head of the Heniz Endowments–one of the environmentalist organizations in the CSSD–as having deep ties to the drilling industry (see Heinz Endowments President Owns $1.2M in Kinder Morgan Stock). The Pittsburgh Post-Gazette has (surprisingly) taken aim at PAI’s criticism of the CSSD. Summarizing the tone of the P-G editorial (our words): “Everybody already knew Bobby Vagt of the Heniz Endowments gets industry money–lighten up PAI. The CSSD is a good thing.”

Here’s part of the P-G editorial:
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Crosstex Energy | Energy Services | Industrywide Issues | Muskingum County | NGLs | Ohio | Utica Shale

Crosstex Ships Utica Condensate with OH Rail Loading Terminal
June 26, 2013June 26, 2013

Yesterday, Crosstex Energy re-activated and started to use its Black Run rail loading terminal in Frazeysburg (Muskingum County), OH. The facility will let Crosstex load and ship 24,000 barrels a day of light oil condensate. The condensate is produced by Utica Shale wells.

The rail loading terminal sits on the short line Ohio Central Railroad (OHCR), which in turn connects with the Columbus and Ohio River Railroad, CSX, Norfolk Southern and the Wheeling and Lake Erie Railway. Plenty of markets for drillers to now access for their Utica condensate production…
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Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA

Energy in Depth Websites Consolidate with National Website
June 26, 2013June 26, 2013

For those wondering (like we did) what the heck happened to the Energy in Depth – Marcellus and Energy in Depth – Ohio websites, they’ve been merged into the national Energy in Depth website. Each of those original websites and their excellent articles are still around–they’re just part of the main site, found at //energyindepth.org.

EID is a vitally important voice in the drilling debate. It is the voice of the drilling industry–backed by the Independent Petroleum Association of America. Those who hate fossil fuels are quick to point out that EID is the voice of “big oil.” Well, uh, yeah, it is. It’s also the voice of little oil and gas companies. But let’s not quibble–all oil is big oil for the eco-nuts. The anti-fossil fuel gang would love nothing better than to put a muzzle on EID. Fortunately for the vast majority of Americans who love fossil fuels and the prosperity we derive from them as a nation (fossil fuels provide virtually all of our energy), EID is not going anywhere. They’re still around setting the record straight. They’ve just done a bit of housekeeping and consolidation of their many websites into one, according to this press release:
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Industrywide Issues | Supply Chain

Drilling Supply Chain: Trade Your Accounts Receivable for Cash
June 26, 2013June 26, 2013

Businesses in the Marcellus and Utica Shale supply chain–from drillers to those who supply them with services–now have a new way of getting their hands on money to keep business moving (or expanding). Transfac Capital, a finance company with offices scattered across the country, has just announced they have expanded into Ohio, Pennsylvania and West Virginia with cash in hand ready to make loans in the drilling industry. Transfac is a “factoring” company–meaning they are not a bank but make loans based on a business’ accounts receivable list. That is, they purchase accounts receivable, paying cash now to businesses that would otherwise have to wait to receive that cash–perhaps up to 90 days or more…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jun 26, 2013
June 26, 2013June 26, 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, Jun 26, 2013”
Hydraulic Fracturing | Industrywide Issues | Research

EPA Abandons Pavillion, Can’t Prove Fracking/Water Contamination
June 21, 2013June 21, 2013

The federal Environmental Protection Agency (EPA) has been desperate to make a connection between fracking and groundwater contamination from chemicals and thought they had a winner in Pavillion, Wyoming (see EPA Keeps Investigating Fracking/Water Contamination in WY). Don’t tell Josh Fox of Gasland and Gasland 2 infamy (who prominently featured Pavillion in both his movies), but yesterday the EPA announced they’ve thrown in the towel and given up on trying to prove a fracking/water contamination connection in Pavillion. It is a tacit admission they screwed up in their testing, as maintained all along by the American Petroleum Institute (see API Says EPA Botched Pavillion, WY Fracking Tests).

The EPA now says, essentially: “We’ll let Wyoming take over the investigation so its done right.” No doubt EPA’s decision to abandon Pavillion will provide the tinfoil hat brigade with lots of fodder for how “big oil and gas” has infiltrated and corrupted the activist Obama EPA. Here’s the full EPA statement issued yesterday:
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Hydraulic Fracturing | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Summit County

Home Rule Case Heads to Ohio Supreme Court
June 21, 2013June 21, 2013

In February, Beck Energy won an appeal against Munroe Falls in Ohio’s Court of Appeals (Ninth District) which had the effect of striking down so-called “home rule” of oil and gas drilling (see OH Appeals Court Strikes Down Home Rule for Drilling). Ohio state law takes precedence over local laws when it comes to drilling, which was affirmed by the Ninth District judges. However, that mid-level court decision was appealed to the Ohio Supreme Court and the Supremes have just announced they’ve decided to take the case…
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Energy Services | Hydraulic Fracturing | Industrywide Issues | Maryland | Statewide MD | U.S. Silica

U.S. Silica Getting $55K from Maryland to Expand HQ
June 21, 2013June 21, 2013

From the “we never knew this, how very interesting” department: U.S. Silica, one of the country’s largest sand and proppant companies providing frack sand to drillers around the country, is headquartered in…anti-drilling Maryland? Yep–HQ for U.S. Silica is Frederick, MD–not all that far from both Washington, D.C. and Baltimore. Maryland, like New York, is currently in the long, slow process of shooting itself in the head on the issue of fracking and shale drilling (see Food & Water Watch Pushes for Fracking Ban in Maryland).

Anywho, although Maryland doesn’t want drilling in the state, they’re happy to enable it in other states. The City of Frederick and the state of Maryland want to keep U.S. Silica (and its jobs) in place and are willing to give them $55,000 to do it…
Read More “U.S. Silica Getting $55K from Maryland to Expand HQ”
CONSOL Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Will WV Resolve Legal Issues & Use Acid Mine Water for Fracking?
June 21, 2013June 21, 2013

West Virginia, like Pennsylvania, has a problem with “mine influenced water” (MIW), commonly called acid mine drainage–water that seeps from abandoned coal mines into the environment. It’s a serious environmental threat in both states. WV lawmakers, like those in PA, would like to solve two problems at the same time: Get rid of the acid mine drainage by using it as a source of water for fracking shale wells (see PA Wants Drillers to Use Acid Mine Water in Fracking – Will They?).Can WV make it work when (so far) it hasn’t worked in PA?
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Monroe County (NY) | New York | Regulation

Flags at Half Staff: Rochester, NY Extends Fracking Moratorium
June 21, 2013June 21, 2013

On Tuesday, Rochester, NY City Council voted 9-0 to extend ordinance No. 2012-269, a moratorium on shale gas drilling, until June 30, 2014 (a copy of the resolution is embedded below). A similar moratorium in Binghamton, NY was found illegal and tossed out by a judge last year (see NY Judge Throws Out Binghamton Fracking Moratorium). Just a few weeks ago, a town in Delaware County was sued for passing the same type of moratorium (see Exclusive: Sidney, NY Sued by Landowners over Fracking Moratorium). Perhaps City Council members and voters in Rochester simply like paying high taxes to defend lawsuits?
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Energy Services | GreenHunter Resources

GreenHunter Sells Some TX Operations, Focuses on Marcellus/Utica
June 21, 2013June 21, 2013

Earlier this week, GreenHunter Resources, a fracking wastewater treatment and disposal company with major operations in the Marcellus/Utica, released their first quarter 2013 financial and operating results. A tad late, yes, since first quarter ended March 31. However, it’s an informative update with details on their Marcellus/Utica operations. Of note: the company either has or plans to sell some (most?) of its Texas operations to concentrate on the Marcellus/Utica and on manufacturing and selling its above ground portable tank solution–called the MAG Tank™.

You may recall GreenHunter is sitting on pins and needles waiting for the U.S. Coast Guard (and the White House, and the EPA, and…) to approve barge transportation of fracking wastewater. GreenHunter now owns seven barge facilities in the Marcellus/Utica (see The Long (Federal) Road to Approve GreenHunter’s Barge Terminals). The full GreenHunter 1Q13 update from Monday:
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Hydraulic Fracturing | Industrywide Issues | Litigation

Case Western Law Review Summer 2013: All About Fracking
June 21, 2013June 21, 2013

Almost all of the Summer 2013 issue of the Case Western Reserve Law Review (507 pages) is dedicated to the legal and policy issues surrounding hydraulic fracturing and shale drilling. The articles range from policy to litigation to climate change. We’ve not reviewed the articles. We offer the full issue (embedded below) as a resource for legal issues surrounding the issue of fracking.
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Industrywide Issues | Ohio | Pipelines | Statewide OH

The Surprising Number of New NatGas Pipelines Coming in OH
June 21, 2013June 21, 2013

Permits and wells drilled is usually the focus in Ohio’s Utica Shale. However, there’s a story just as big: The number of pipelines either now being built–or planned–in eastern Ohio. How many pipelines would you guess are “in the pipeline” to be built? A dozen? A few dozen? How about, over 100. Yes, the number of planned pipelines in Ohio–from gathering lines to interstate transmission pipelines–is staggering.

Here’s a map from he Public Utilities Commission of Ohio that shows how many pipelines are being planned, by county:
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