Marcellus Drilling News

Crime | Industrywide Issues | Mahoning County | Ohio | Wastewater

Youngstown Frackwater Dumper’s New Strategy to Reopen Business
April 5, 2013April 5, 2013

We have the next chapter in the ongoing, very sad story of Ben Lupo, the Youngstown, OH man who ordered an employee to dump fracking wastewater down a sewer drain—wastewater that ended up in the Mahoning River (see Youngstown Business Dumped >200K Gal of Untreated Wastewater). The Ohio Dept. of Natural Resources promptly closed down both of the companies he owns and controls, D&L Energy and Hardrock Excavating (see OH Company Dumping Frack Wastewater in Drain May Appeal Shut-Down). Lupo and his lawyers have been desperately trying to get the “death sentence” for his companies lifted—at least for D&L Energy, a sizable operation with dozens of employees.

Lupo is now trying a new strategy in his attempt to reopen D&L Energy: He’s resigned from both D&L and Hardrock and has turned over ownership and control of the companies to his wife. D&L has officially “severed all ties” with Lupo. Question is, will it work?

Read More “Youngstown Frackwater Dumper’s New Strategy to Reopen Business”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Impact “Fee” Year 2: Revenue Goes Down, Slightly
April 5, 2013April 5, 2013

In early 2012, Pennsylvania enacted the most sweeping rework of oil and gas laws in the state in decades (see Gov. Corbett Signs New Marcellus Drilling Law). Called Act 13, one of the provisions of the law is an “impact fee” collected on each horizontal shale well drilled. The fee is intended to offset the impacts of drilling in places where drilling happens, hence the name. However, in order to get enough support to pass Act 13, politics were played and 40% of the “fee” got re-allocated to non-impact uses—i.e., 40% of the fee became a tax (see PA’s New Tax on Drilling (er Sorry, Impact Fee)). Once the dust settled and the bugs were worked out of the new fee/tax by the state Public Utility Commission—the agency tasked with calculating and collecting it—the first year raised $204 million in revenue (see PA Impact Fee Raises More Revenue than Expected).

The preliminary estimates are now out for the second year, and the fee/tax for year #2 has gone down—from $204 million to $198 million, according to Gov. Tom Corbett. Why? The price of natural gas was lower in 2012 than it was in 2011, putting the fee collected into a different “bracket” (see this page for the somewhat complicated grid that determines how fees are calculated). Gov. Corbett’s comments about year #2 impact fee revenue:

Read More “PA Impact “Fee” Year 2: Revenue Goes Down, Slightly”
Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Westmoreland County

Murrysville, PA Stream Monitoring Group Expands to Air Monitoring
April 5, 2013April 5, 2013

A volunteer group in Westmoreland County called the Murrysville Stream Monitoring Group tests seven local streams once each month, looking for total dissolved solids. They’ve been testing since September of last year. The group was started and is populated by anti-drillers, people opposed to Marcellus Shale drilling. The locations they’ve selected to test are close to active Marcellus well drilling operations. What have they found so far? Nothing. Each stream has passed every test they’ve done—both upstream close to well drilling and downstream away from drilling. Same result—nothing.

Since they aren’t finding anything in the streams, maybe it’s time for the Murrysville Group to turn their attention to the air. And so they have. But monitoring air is expensive, requiring equipment that costs $3,000 per unit. The group wants three units, and they want taxpayers to fund it:

Read More “Murrysville, PA Stream Monitoring Group Expands to Air Monitoring”
Energy Companies | Gastar Exploration | Marshall County | West Virginia | Wetzel County

Gastar Exploration – Rising Star in the Marcellus?
April 5, 2013April 5, 2013

An article on the Seeking Alpha blog site highlights the (so-far) underperformance, and now potential upside for Gastar Exploration in the Marcellus Shale. The article refers to Gastar as a “rising star” in the Marcellus.

Here’s a brief portion of the article with a map showing Gastar’s “liquids-rich” lease holdings and where they’ve already drilled (in WV):

Read More “Gastar Exploration – Rising Star in the Marcellus?”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Statewide OH | Wastewater

Obama “Inches” Toward Approving Barge Shipments of Frack Water
April 5, 2013April 5, 2013

GreenHunter Water (and others) anxiously await approval from the Coast Guard to allow shipment of fracking wastewater by barge. GreenHunter has a lot riding on the Coast Guard’s decision (see GreenHunter’s Plans to Move Wastewater by Barge Delayed). Anti-drillers are attempting to prevent barge shipments of frack water as a tactic to discourage drilling. They ignore the glaring fact that substances far more toxic than frack water are shipped on river barges each and every day of the week, all done with a sterling safety record.

Reuters is now reporting that the Coast Guard has recommended barge shipments be allowed and has supplied the Obama administration with a draft rule to do it. Reuters also reports the administration is “inching ahead” with plans to approve the rule:

Read More “Obama “Inches” Toward Approving Barge Shipments of Frack Water”
Education | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

A Plethora of Shale Organizations/Institutes Spring Up in PA
April 5, 2013April 5, 2013

Although there’s a small minority of mouthy people opposed to shale drilling in Pennsylvania (groups like the Sierra Club and PennFuture), most companies and organizations are clamoring to get a piece of the Marcellus drilling industry action in the Keystone State. Case in point: Several years ago the industry-backed Marcellus Shale Coalition was launched, a fabulous organization that promotes Marcellus Shale drilling and ensures certain standards are met by its members. It’s a “carrot” kind of organization—encouraging drillers to join and conform to common-sense rules. A few weeks ago, a new ad hoc group of drillers and environmentalists announced the launch of the Center for Sustainable Shale Development, or “CSSD” (see Important: Drillers & Enviros Form New Group, Launch Cert Program). CSSD wants to supplement state regulations with even tougher, more expensive rules. CSSD wants to force drillers to get their certification—a “stick” kind of organization. Not to be outdone, a few days after CSSD launched yet another group unveiled itself, called the Shale Gas Roundtable. They too are crafting “rules to drill by” that will soon be released (see Out of the Shadows: Another New Group Wants to Regulate PA Shale).

Academe wants in on the action too…

Read More “A Plethora of Shale Organizations/Institutes Spring Up in PA”
Energy Companies | Health Impacts | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Pittsburgh Newspapers Not Ready to Concede Defeat in Range Case
April 5, 2013April 5, 2013

The Pittsburgh Post-Gazette and the Washington, PA Observer-Reporter are not quite ready to throw in the towel on what increasingly looks like a vendetta against Range Resources. The two newspapers sued in May 2012 to have court documents unsealed in a settlement between Range and the Hallowich family in Washington County, PA (see Pittsburgh Newspapers Sue to Unseal Drilling Court Case). The newspapers were hoping to find evidence that Range had covered up a case where their drilling (fracking) had led to contamination of the Hallowich’s water well, or perhaps had adversely affected their health. A judge recently unsealed the court documents and guess what? No evidence of water contamination (see Judge Orders Range/Landowner Settlement in PA Made Public).

Not only was there no water contamination, the Hallowich’s signed an affidavit stating there has been no ill health effects as well (see Affidavit in Range PA Settlement Shows No Drilling Health Impacts). Oops. Major egg on the face of the newspapers. Or using a different metaphor, they went fishing and didn’t even get a bite. What to do? We know! Gin up a false controversy that there’s still a missing document from the the mountains of documents the court released. Yeah, that’ll be worth a few more headlines and copies sold. After all, we have to somehow help pay for the lawyers and time we burned on this effort…

Read More “Pittsburgh Newspapers Not Ready to Concede Defeat in Range Case”
Housing | Industrywide Issues | Marshall County | Regulation | West Virginia

Moundsville, WV Clamps Down on Marcellus Trailer Parks
April 5, 2013April 5, 2013

The City of Moundsville (Marshall County), WV is clamping down on the number of trailer and camper sites in town. A number of new sites have sprung up recently because of nearby Marcellus Shale drilling:

Read More “Moundsville, WV Clamps Down on Marcellus Trailer Parks”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Apr 5, 2013
April 5, 2013April 5, 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: Fri, Apr 5, 2013”
Economic Impact | Guest Post | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

Guest Post: Susquehanna County’s Astonishing Resource Potential
April 4, 2013April 5, 2013

The following article was written by MDN friend and prolific contributor of links and story ideas, Chris Acker. Chris splits his time between Montrose, PA (in Susquehanna County) and Savannah, GA. Here is his biography from the Seeking Alpha website:

Christopher Acker, Geological Engineer with an MBA, grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos. See www.PianoGrands.com. A few years ago, it was established that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He is now happily engaged once again in energy economics, with emphasis, naturally, on gas.

Here is Chris’ thoroughly researched, extensively footnoted, superb analysis of Susquehanna County’s potential Marcellus Shale natural gas yield…

Read More “Guest Post: Susquehanna County’s Astonishing Resource Potential”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Marion County | West Virginia | XTO

District Court Judge Asks WV Supremes to Rule in Surface Rights Case
April 4, 2013April 4, 2013

Waaaay back in July 2011 MDN told you about an interesting legal case in West Virginia in which a surface rights landowner was suing XTO because XTO is (in the opinion of the landowner) abusing the right to set up a well pad on his surface in order to get gas not only under the surface of his property, but also from his neighbors’ property (see WV Marcellus Legal Battle over Well Pads: Surface Rights Owners v. Mineral Rights Owners). The surface landowner, Richard Cain, acknowledges law and precedent allows XTO to set up a well on his land in order to get the gas under his land—but Cain maintains XTO isn’t really all that interested in getting it from under his land, but simply wants to use his convenient location to reach other nearby properties. Cain gets all of the headaches and none of the royalty money. Kind of a raw deal, from his perspective. Can’t blame him.

There is a new development in the case. The judge presiding over the case, U.S. District Judge Irene Keeley, has formally asked the WV Supreme Court to rule on the key question in the case since it will set a precedent (and has far-reaching consequences) for the entire state…

Read More “District Court Judge Asks WV Supremes to Rule in Surface Rights Case”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Research

New Report: Reasons for U.S. Dramatic Increase in O&G Production
April 4, 2013April 4, 2013

Robert Bryce, an author for more than two decades and a senior fellow at the Manhattan Institute’s Center for Energy Policy and the Environment has just released an important new report titled, “New Technology for Old Fuels: Innovation in Oil and Natural Gas Production Assures Future Supplies” (full copy embedded below). In the opening of the report, Bryce shares a startling fact: “In 2012, U.S. oil production rose by 790,000 barrels per day, the biggest annual increase since U.S. oil production began in 1859. In 2013, the Energy Information Administration expects production to rise yet again, by 815,000 barrels per day, which would set another record. Domestic natural gas production is also at record levels.”

How and why has production increased so dramatically in the past few years? The obvious (to us) answer is shale, but it’s not that simple. Bryce’s report delves into the confluence of reasons for why oil and gas production has gone up, and will continue to increase for the foreseeable future. His reasons include better technology and better methods of drilling. Here’s the executive summary of the report, which includes his key findings:

Read More “New Report: Reasons for U.S. Dramatic Increase in O&G Production”
Energy Companies | Industrywide Issues | Shell | Supply Chain

Ultimate Supply Chain Challenge: Sell Your Whole Company to Shell
April 4, 2013April 4, 2013

Listen up start-up technology companies with products and services in the oil and gas space: Shell is ready to invest “several hundred million dollars” in emerging tech companies—everything from gas production and conversion technologies to geophysical mapping to “big data.” To find out if your company fits the profile, and for details on how to contact Shell with a proposal, read the press release below:

Read More “Ultimate Supply Chain Challenge: Sell Your Whole Company to Shell”
Industrywide Issues | NG Vehicles | Pennsylvania | Statewide PA

REV LNG, 11 Others Finalists in Shale Gas Innovation Contest
April 4, 2013April 4, 2013

A shout-out and big congratulations to REV LNG (headquartered near Rochester, NY), one of 12 finalists in this year’s Ben Franklin Shale Gas Innovation Contest. Each year the Ben Franklin Shale Gas Innovation and Commercialization Center conducts a contest looking for the “best shale gas-oriented innovations, new product ideas, or service concepts that are either in the development stage or recently launched.” They are awarding three $25,000 prizes this year.

Through his work with Shale Daily, MDN editor Jim Willis has had the pleasure of working with, and learning about, the unique technology REV LNG has developed. The company is one of the very few in the United States that buys, transports and sets up “mobile filling stations” (at drill pad sites) so drillers can use liquefied natural gas (LNG) to power their equipment. REV LNG’s uniqueness is that it’s a turn-key service. Customers just pay a “per gallon” fee to fill it up, and REV LNG takes care of the rest. We wish them well in the competition!

Here’s the press release and full list of all the very worthy companies selected to be in the final 12:

Read More “REV LNG, 11 Others Finalists in Shale Gas Innovation Contest”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | UGI Energy Services | Wyoming County (PA)

Back to Kindergarten: UGI Explains NatGas Gate Stations
April 4, 2013April 4, 2013

Northeastern PA utility company UGI is in a strange position. Geographically the company and it’s natural gas distribution network sit in or near some of the richest deposits of natural gas known to exist in the United States—the Marcellus Shale. All UGI has to do is install some new pipelines here and there, and a compressor station here and there, to bring that low-cost gas to its customers. Currently the gas being delivered to households in the Scranton/Wilkes-Barre area mostly comes from the Gulf Coast! Why not use gas produced locally, which is far cheaper.

Why not? Because of dullards who oppose installing the new pipelines and compressor stations. Anything to do with natural gas has gotten so divisive and politically charged, that UGI now has to explain (“dumb it down”) to people why lowly gate stations (pipeline connectors) are safe:

Read More “Back to Kindergarten: UGI Explains NatGas Gate Stations”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Lawrence County | Pennsylvania | Seismic Testing

Westminster College Takes a Pass on Seismic Survey & Drilling
April 4, 2013April 4, 2013

Seismic surveying is coming to New Wilmington (Lawrence County), PA—and when surveys come, it’s usually not too long until permits and then drilling follow. Which is great news for local landowners.

However, the largest landowner in town, Westminster College, has sadly decided to disqualify themselves from the survey and from realizing the benefits of fracking. Westminster won’t allow seismic surveying and is bogged down in the “study it to death” routine being pushed by anti-drillers when it comes to potential drilling under college land:

Read More “Westminster College Takes a Pass on Seismic Survey & Drilling”