Marcellus Drilling News

Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

WV Legislation Would Create Forced Pooling – with a Twist
March 28, 2013March 28, 2013

A bill just introduced into the West Virginia legislature would allow for “forced pooling” in very specific cases. Forced pooling laws, in case you’re unfamiliar with the term, require or “force” landowners who have not signed a lease to allow drilling because their neighbors have all signed a lease and drilling under the holdout’s property is required in order to access the other leased properties. However, the WV bill adds a big twist: It will allow forced pooling only in cases where the owner of the mineral rights can’t be determined, or the owner can be determined but can’t be found.

Supporters of the bill, introduced by Sen. Brooks McCabe (D-Kanawha), are careful to point out the new bill (unlike previous failed forced pooling bills) does not force known, unwilling landowners to be placed into a “unit” for drilling…

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Allegheny County | Hydraulic Fracturing | Industrialization | Industrywide Issues | Pennsylvania | Research | Susquehanna County | Wildlife

USGS Study: Marcellus Drilling Fragmenting Forests in PA
March 28, 2013March 28, 2013

The U.S. Geological Survey earlier this week released a new report raising concerns about Marcellus Shale drilling in the Allegheny Plateau (pretty much the entire Marcellus region). The 38-page report (full copy embedded below) looks at two counties in particular: Susquehanna County in northeastern PA, and Allegheny County in southwestern PA.

Using a series of maps and data, the authors raise concerns that Marcellus drilling, along with drilling for gas in coalbed methane (a similar process), is leading to “forest fragmentation”—a situation where forested areas get “carved up” with roadways and drill pads that lead to limiting the geographic habitat area for some species of animals:

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Ohio | Statewide OH

More Angst Over OH Utica’s Oil Prospects
March 28, 2013March 28, 2013

Just a few days ago MDN highlighted a story by Reuters that raises the question of the Ohio Utica Shale’s oil producing potential (see Will OH Utica Turn Out to be Steak, or Just Sizzle? Eye on April). A writer on The Motley Fool website picks up on that theme and makes these observations about the Utica’s oil prospects:

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Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | New York | Tompkins County

NatGas vs Coal for Electricity, What’s an Anti-Driller Do?
March 28, 2013March 28, 2013

An electrical generating power plant located in the most anti-drilling part of Upstate New York—Ithaca and Tompkins County—has filed with the state Public Service Commission to convert the plant from burning coal to burning clean natural gas. This puts anti-drillers like Assemblywoman Barbara Lifton (Democrat from Ithaca) in a quandary. If she supports it, it points out her rank hypocrisy on the drilling issue. If she opposes it and the plant shuts down, she screws a whole bunch of people out of jobs. Not to mention that burning natural gas is a LOT cleaner than burning coal—so opposing it would put her on the side of more air pollution.

Yeah, it’s a real quandary for Ms. Lifton…

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Anti-Drilling/Fossil Fuel | Health Impacts | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Anti-Drillers Send Letter to Cuomo: Stop the Health Review Now
March 28, 2013March 28, 2013

In yet another public relations stunt, Walter Hang from the Ithaca-based Toxics Targeting group, along with several of his anti-drilling, eco-nut buddies (like failed Binghamton Mayor Matt Ryan), sent Gov. Andrew “Ditherer” Cuomo a rambling 4-page letter on Tuesday requesting that he instruct NY State Health Commissioner Nirav Shah to abandon his current review of fracking rules with an eye on health impacts. Why? Because the current review is “fatally flawed” and “an exercise in futility.”

Instead of the current review, Hang & Co. “request” the Dept. of Health perform a full, years-long public health impact study…

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Bradford County | Hydraulic Fracturing | Industrywide Issues | New York | Pennsylvania | Statewide NY | Statewide PA

Support from 2 Prominent Pennsylvanians for Fracking in NY
March 28, 2013March 28, 2013

MDN wasn’t the only one to note the very loud, in-your-face editorial by former PA Gov. Ed Rendell printed in yesterday’s New York Daily News (see Former PA Gov. Rendell to Gov. Cuomo: Get Fracking). Karen Moreau, executive director of the NY State Petroleum Council, released the following statement yesterday noting Rendell’s support for fracking in New York, along with the support from a hospital administrator of a hospital that sits in the middle of the most-drilled county in PA (Bradford):

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Carbon County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Trucking

Help Wanted: PA Fire Truck Co. Retools to Build Marcellus Tankers
March 28, 2013March 28, 2013

More positive impacts from the Marcellus drilling industry in Pennsylvania. A major employer in Carbon County, PA, Kovatch Mobile Equipment Corporation (in Nesquehoning), a company that previously manufactured mostly fire trucks, is hiring 40 new workers to help with a new business line: water hauling tankers used by the Marcellus Shale industry. Kovatch’s increase in employment is rippling throughout the entire local economy…

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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 28, 2013
March 28, 2013March 28, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

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Hydraulic Fracturing | Industrywide Issues | New York | Pennsylvania | Regulation | Statewide NY | Statewide PA

Former PA Gov. Rendell to Gov. Cuomo: Get Fracking
March 27, 2013March 27, 2013

$frack baby frack$ Interesting. Former PA Gov. Ed Rendell (“Fast Eddie” as he’s know around here) has penned a huge editorial printed in today’s New York Daily News, a left-leaning newspaper, aimed at one person: NY Gov. Andrew Cuomo. Eddie’s words of advice to his fellow Democrat? Frack Andy Frack!

Here’s Rendell’s op-ed:

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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Spins Gold from Hay with Low Cost Drilling
March 27, 2013March 27, 2013

Cabot Oil & Gas is, so far, the only driller to attain 1 billion cubic feet per day of natural production in the Marcellus Shale (see Who’s a Member of the Marcellus “1 Bcf/d” Club?). Perhaps the most astonishing part of their story is that all of Cabot’s drilling happens in rural northeastern Susquehanna County, PA. Although Cabot is some 10 times smaller than Chesapeake Energy, the value of their stock (market capitalization) recently surpassed Chesapeake (see Guest Post: Corporate Hubris Humbles Chesapeake – Cabot Soars Sure & Steady).

Cabot’s ability to spin gold from hay is in no small part because of their Marcellus operation in Susquehanna County…

At a recent conference, Cabot made an investor presentation (full copy below) that shows, in part, why they’re so profitable—even in a low commodity price environment. As we’re writing this story, the commodity price of natural gas is exactly $4 per thousand cubic feet. Depending on geography, the cost to produce natural gas approaches $4/Mcf for many drillers. But for Cabot? Their average cost per Mcf in 2012 was $1.67, and for 2013 they estimate it will go even lower (see slide 10 below).

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Blue Racer Midstream | Caiman Energy | Crime | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia

2nd Bomb Threat Stops Construction at Natrium, WV NGL Plant
March 27, 2013March 27, 2013

Just two days ago MDN told you that the Blueracer Midstream natural gas liquids (NGLs) processing plant being built in Natrium, WV is now several months behind schedule and not due to go online until later this spring (see Natrium, WV NGL Plant Behind Schedule, Will Open “Late Spring”). Back in February, the same Natrium plant had a bomb threat that stopped construction and caused an evacuation of 500 workers for several hours (see Bomb Threat at Natrium, WV NGL Plant Doesn’t Slow Construction). At the time, it was thought perhaps the bomb threat did not specifically target the NGL plant because the previous day a bomb threat was called at a different nearby WV Route 2 location, not related to the natural gas industry.

But now? We’re not so sure. Yesterday a second bomb threat was made against the Natirum facility, causing the evacuation of 700 construction workers, shutting down work for another several hours. The head of the WV Oil and Natural Gas Association is calling it a case of “domestic terrorism” and a crime:

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Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Wastewater | West Virginia

GreenHunter Tries to Repair Damage with Wheeling over New Project
March 27, 2013March 27, 2013

As MDN reported yesterday, GreenHunter Water made a big faux pas by not genuflecting before the Wheeling, WV City Council before announcing their plans to build a fracking wastewater recycling and shipping facility in the city along the Ohio River (see Wheeling Councilwoman Vows to Prevent Frack Water Treatment Plant). GreenHunter attempted to repair some of the damage yesterday when they briefed city officials on their proposed project.

Did the meeting help? Maybe, but the city is not ready to “take a position on the project” just yet…

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Bill Would Require Utilities to Extend NatGas Service
March 27, 2013March 27, 2013

Two PA Republican state senators have introduced legislation that would grant the state Public Utility Commission (PUC) the power to require utility companies to provide natural gas service to areas that currently lack it:

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Industrywide Issues | Regulation | Statewide WV | Taxation | West Virginia

WV Legislators Fast Track Fix of Severance Tax Exemption Loophole
March 27, 2013March 27, 2013

WV Senate Bill 638, introduced on Monday, appears to be on a fast track through the state Senate. The bill would repeal severance tax exemptions for some natural gas wells. In 2000, legislators enacted severance tax exemptions to encourage older natural gas wells that were not producing to re-open. Many of the operators of those wells are mom and pop, small-time operators—so legislators passed a law that said in essence, “If a well has been dormant more than five years, re-open it and we’ll suspend severance taxes on its production for the next 10 years.”

Legislators are now concerned that huge energy companies drilling for shale gas may decide to shut-in a well for five years to let prices rise and then re-open it and get 10 years of tax-free production. Hence Senate Bill 638, to repeal the older legislation and fix the loophole. The balancing act is to not throw the baby out (production from small-time vertical wells) with the bathwater (big-time horizontal shale wells)…

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | NGLs | Processing Plants

ExxonMobil Chemical Chief Says Fracking Transforming our Future
March 27, 2013March 27, 2013

Stephen Pryor, president of global plastics and chemicals giant ExxonMobil Chemical Co., recently spoke with Plastics News and boy oh boy did he have a lot to say! Pryor is someone who clearly “gets it” when it comes to the miracle of hydraulic fracturing and its profound impact on the U.S. and around the world. In his remarks, Pryor says fracking is transforming America’s future and the most important thing to happen in the last 150 years. He also says private business (and not government) is responsible for this miracle, and government should stay out of it. In topics ranging from ethane crackers to jobs to exports, he pretty much covers the whole spectrum.

Take a few minutes to soak up Mr. Pryor’s wisdom:

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Industrywide Issues | Lycoming County | Pennsylvania | Regulation | Taxation

PA Gov. Corbett Visits Airport Being Renovated with Impact Fee $
March 27, 2013March 27, 2013

Yesterday, PA Gov. Tom Corbett took a quick trip to tour and host a meet & greet at the Lycoming County Airport (Williamsport, PA). The purpose of the trip was to crow a bit about passing the new Act 13 shale oil and gas drilling law last year, which has resulted in $204 million in new revenue to the state from impact fees. Some of the impact fee money is being used to help fund a $13.6 million renovation project at the Lycoming County Airport.

The governor’s office issued the following press release about the event:

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