Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

How Do You Talk to (Educate) Friends & Neighbors About Shale?
October 10, 2013October 10, 2013

It’s a common problem for those of us who are immersed in the shale energy industry. We are so saturated all the time with the arguments and counter-arguments and details about shale drilling, that when faced with a family member, friend or neighbor who isn’t well-versed in the industry, we grope for the words and terms to use to describe this incredible industry and its successes. Most of the time our friends and family have a built-in reticence and caution about shale drilling because they know nothing more than what mainstream media feeds them, most of it untrue.

So how do we quickly, accurately and effectively communicate the positive shale drilling message? Michael Krancer, former Secretary of the PA Dept. of Environmental Protection, has a solution, which he shared recently at the Energy Inc. conference in Pittsburgh…

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Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Susquehanna County

More on “Pro-Drilling” Conversion of Gasland II Star from Dimock
October 10, 2013October 10, 2013

A few days ago we told you that one of Josh Fox’s stars in Gasland II, Victoria Switzer, has changed sides and now wants to work with the drilling industry to ensure the air is clean in Susquehanna County, PA (see Gasland II Starlet Leaves Anti-Drilling Behind, Adopts “Realism”). This is a huge problem for the anti-drilling movement, a movement that is typically shrill and frankly, unthinking. We now have at least a few people who, while they don’t like natural gas drilling going on around them, are willing to have a cogent, what they call “respectful” dialog about it. They also recognize shall drilling is here to stay–they are realists. Finally, some people on the other side of the issue we can talk to!

A bit more about the new tone and the new group which Switzer and other former anti-drillers have formed–a group called Breathe Easy Susquehanna County…
Read More “More on “Pro-Drilling” Conversion of Gasland II Star from Dimock”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 10, 2013
October 10, 2013October 10, 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 10, 2013”
Chesapeake Energy | Energy Companies

The Great Chesapeake Massacre: Lawler Fires 800 People in One Day
October 9, 2013October 9, 2013

Doug Lawler, Chesapeake Energy’s new CEO–brought over from Anadarko Petroleum after Chessy board member and corporate raider Carl Icahn booted Aubrey McClendon to the curb–says he’s now done swinging the ax at the once-great natural gas driller. And boy did he end his ax-swinging with a bang–he must be exhausted. Yesterday Lawler fired another 800 people companywide, in addition to the ones already let go in his recent firing sprees (see Chesapeake’s Lawler Continues to Swing the Ax – More VPs Gone and God, Veggies & Bees – What’s Next on the Chesapeake Chopping Block?). Yesterday was more like a massacre than a mass firing. We seriously wonder how long Lawler will last after inflicting so much psychological (and real) damage on the company. Is he just getting the company ready for sale at his master’s bidding–so Icahn can add a few more zeros to his already robust bank account?

Some 640 of the 800 who were fired yesterday worked at Chessy’s Oklahoma City headquarters (is there anyone left to turn the lights out?). Twenty of the fired were Pennsylvania employees, on top of the dozen or more PA employees already let go a few months ago. No word on how many got the ax in OH or WV. However, the total body count now stands at around 1,200 since the beginning of the year. That’s 1,200 people out of work thanks to Carl Icahn and Doug Lawler. Here’s the bloody details…
Read More “The Great Chesapeake Massacre: Lawler Fires 800 People in One Day”
Energy Companies | Talisman Energy

Carl Icahn Snaps Up 6% of His Next E&P Victim: Talisman Energy
October 9, 2013October 9, 2013

Now that Carl Icahn has a toady in place to prep Chesapeake Energy for sale or greater things (we’re not sure which, see today’s story about the mass(acre) firings at Chesapeake), Icahn is already growing restless again. Apparently the wealth of the entire world would not be enough for Lord Icahn, so he’s out on the prowl–and what has he found? That’s right, another drilling company with operations in the Marcellus Shale: Canadian-based Talisman Energy (with 208,000 net acres leased, a number of wells drilled in the Marcellus).

Unfortunately for Talisman, Icahn now has his claws in the company, buying up nearly 6% of the company–more than enough to throw his weight around. Like a cat playing with a mouse, Icahn used Twitter to send a signal (threat?) to the company: “May have conversations with mgmt re strategic alternatives, board seats, etc.” If we were CEO Hal Kvisle, we would be very worried…
Read More “Carl Icahn Snaps Up 6% of His Next E&P Victim: Talisman Energy”
Air Quality | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Regulation | Statewide PA

Should PA Compressor Plants Miles Away be Considered “Adjacent”?
October 9, 2013October 9, 2013

A few weeks ago at the Shale Insight 2013 event in Philadelphia, MDN heard a panel discussion that tackled a thorny, and on-going, issue in Pennsylvania. The issue is complex, but if we can condense it to a brief statement, it would be this: Should processing and compressor plants that are connected by pipelines but not directly next to each other be considered a “single source” when it comes to the pollution they emit? The argument comes down to the concept of adjacency–what does the word “adjacent” mean in the federal Clean Air Act? Does it mean “directly next to each other,” or “in the same general vicinity” (up to X miles away)?

If the plants scattered in a general area–say 20-30 miles around–are considered a single source or “adjacent”, it means collectively they would be considered a “major source” of pollution and therefore subject to very strict federal guidelines under the Clean Air Act. If they are not adjacent and not a single source, they are regulated by the state and the state has less onerous rules when it comes to air pollution emissions. It may sound like a small difference, but being regulated by the EPA or the state of Pennsylvania is a huge (and expensive) difference. The real question is, are residents who live in areas with an abundance of compressor stations and processing plants being exposed to dangerously high levels of air pollution?…
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Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

17 State Chambers of Commerce to EPA: States Regulate Fracking
October 9, 2013October 9, 2013

On Sept. 20, 17 state Chambers of Commerce sent a joint letter to President Obama’s new EPA Administrator, Gina McCarthy. They opened the letter (full copy below) with a nice greeting and a congratulations on her recent confirmation as administrator, and then immediately launched into a statement (not really a request) that tells her to, in so many words, keep her mitts off fracking. That is, leave the regulation of fracking where it properly and Constitutionally belongs–with the individual states.

The federal government does not have a Constitutional role in regulating fracking and the Chambers of Commerce, representing 34% of all states and from the biggest oil and gas producing states in the Union–want to keep it that way. Not surprisingly, among the signatories are the Pennsylvania, Ohio and West Virginia Chambers of Commerce…
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Accidents | Energy Services | Enterprise Products Partners | Harrison County | Industrywide Issues | Ohio | Pipelines

Drilling Mud Spill in Harrison County, OH – ATEX Express Pipeline
October 9, 2013October 9, 2013

An Arizona company, Southeast Directional Drilling, was hired by Enterprise Products Partners to drill a trenchless hole underneath Conotton Creek in Harrison County, OH for Enterprise’s ATEX Express ethane pipeline–a pipeline that will stretch from Pennsylvania through Ohio and eventually all the way to the Gulf. However, Southeast hit a snag. Last week an “unknown quantity” of drilling mud used to lubricate the drill was spilled into Conotton Creek and onto the properties of two area homeowners.

Fortunately drilling mud is non-toxic–but in sufficient quantities it can suffocate both plants and fish. The Ohio Environmental Protection Agency is on the case investigating…
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Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

PA Republicans Introduce 4 Royalty Bills, Mea Culpa?
October 9, 2013October 9, 2013

A new PA law was supposed to give leased landowners whose property has had drilling more protections with respect to royalties, but instead ended up harming some landowners who are not leased by allowing forced pooling of their land–weakening their bargaining position (see PA Gov Corbett Signs Back-Door Forced Pooling Bill into Law). PA landowners in general and the National Association of Royalty Owners (NARO), PA chapter in particular were not pleased with the new law. Perhaps in an attempt to get back into the good graces of PA landowners, several Republican state lawmakers whose districts are in the Marcellus Shale have introduced a plethora of new bills to protect royalty interests of landowners.

A group of four House Republicans, led by Rep. Garth Everett (R-Lycoming County), recently introduced House Bill 1684, which seeks to clarify state law regarding the minimum royalty payment for landowners so that the deduction of post-production costs from unconventional wells may not result in royalty payments less than the guaranteed minimum. On the Senate side, Sen. Gene Yaw, whose district covers many of the northeastern PA drilling counties, introduced a series of three companion bills to HB 1684. It seems the Republicans can’t do enough now to help out leased landowners…
Read More “PA Republicans Introduce 4 Royalty Bills, Mea Culpa?”
Ethane | Industrywide Issues | NGLs

NGLs in OH & PA: Roughly 30/70 Propane/Ethane
October 9, 2013October 9, 2013

How much of what compound makes up what are called natural gas liquids? We read about NGLs constantly. The “wet gas” area of southwestern PA and eastern OH is said to have a lot of wet gas, or NGLs, which makes those areas more profitable for drillers. What’s in NGLs? In January 2012 we wrote a post to help readers understand the compounds found in NGLs–which ones are there, and what they are used for (see Just What are Natural Gas Liquids Anyway?).

However, MDN friend and intrepid reporter Bob Downing, from the Akron Beacon Journal, recently picked up on another piece of the puzzle. Bob found a reference as to how much of what makes up the typical barrel of NGLs–at least in the Marcellus/Utica region…
Read More “NGLs in OH & PA: Roughly 30/70 Propane/Ethane”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Oct 9, 2013
October 9, 2013October 9, 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 9, 2013”
Energy Companies | Forced Pooling | Hilcorp Energy | Industrywide Issues | Lawrence County | Litigation | Pennsylvania

Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner
October 8, 2013October 8, 2013

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…
Read More “Hilcorp Uses PA Forced Pooling Law Against Lawrence Cty Landowner”
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
October 8, 2013October 8, 2013

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…
Read More “Dow Disingenously Tells Shell to Forget About a PA Cracker Plant”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided”
October 8, 2013October 8, 2013

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…
Read More “PA Former Sec. Krancer: Frack Moratorium “Worse than Misguided””
Industrywide Issues | Ohio | Statewide OH | Trucking | Utica Shale | Wastewater

Open-Air Frack Wastewater Impoundments Coming Soon to Ohio
October 8, 2013October 8, 2013

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?…
Read More “Open-Air Frack Wastewater Impoundments Coming Soon to Ohio”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Sullivan County

Debra Winger: Vote Early & Vote Often – Against Fracking in NY
October 8, 2013October 8, 2013

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…
Read More “Debra Winger: Vote Early & Vote Often – Against Fracking in NY”