Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Supreme Court Resignation Affects Act 13 Zoning Decision
March 26, 2013March 26, 2013

Landowners and drillers have been waiting since last year for the results of a case before the Pennsylvania Supreme Court. Early last year the PA legislature passed the most sweeping new oil and gas drilling regulations in decades, called Act 13. Part of Act 13 replaces a crazy quilt patchwork of local zoning regulations with a set of uniform state zoning regulations. Towns didn’t like being told they can no longer fiddle with where a well can and can’t be drilled in their borders, so just over one year ago they sued (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law).

Lower courts ruled in favor of the towns, striking down the zoning provisions of Act 13. The state appealed (and expedited) the rulings all the way to the state Supreme Court. The Supremes heard arguments in October (see PA Supreme Court Hears Testimony on Act 13 Zoning). Since then? We’ve waited for their decision on this vitally important case. Now we have a new wrinkle. One of the Supreme Court justices, Joan Orie Melvin, is being removed from office following conviction for a minor offense (she used state staffers and office space to assist her campaign for the high court). That leaves six justices, and a 3-3 decision is no good, and a real possibility…

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Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

JLCNY Begins Fundraising for Lawsuit Against NY for “Takings”
March 26, 2013March 26, 2013

The 77,000 member Joint Landowners Coalition of New York (JLCNY) is kicking their lawsuit against the state into high gear and asking for donations to help fund litigation. You may recall MDN interviewed Scott Kurkoski, lead attorney for the JLCNY, about their plans to sue New York for “takings” back in February (see video and transcript here: 77K NY Landowners Prepare Lawsuit Against DEC). Since that time, the JLCNY has finalized their plans, all the while hoping New York would change course at the last minute. They finally, reluctantly decided the clock has run out (see JLCNY Loses Faith in Cuomo, Initiates Lawsuit over Fracking Rules).

The lawsuit groundwork is ready. What’s needed now are several good plaintiffs—and money. Hence the fundraising appeal issued yesterday:

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Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

OH EPA Director Says New Fracking Technology a “Game Changer”
March 26, 2013March 26, 2013

On Monday in Youngstown, Ohio at a Chamber of Commerce breakfast, the director of the Ohio EPA, Scott Nally, expressed his hope and optimism that fracking technology would quickly evolve and use less water:

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Hydraulic Fracturing | Industrywide Issues | Regulation | Research

EPA Appoints Panel of Experts to Review Fracking Study Due 2014
March 26, 2013March 26, 2013

The federal Environmental Protection Agency (EPA) is in the midst of a multi-year “research study” of hydraulic fracturing. The aim of the study is to find a way for the EPA to horn in on regulating oil and gas drilling—at the federal level—by using the federal Clean Water Act and Clean Air Act. The feds really really want to find a way to grab away the power to regulate oil and gas drilling from the individual states. The Constitution grants that right to the states alone.

Apparently the EPA study is progressing—to the point they announced yesterday an “independent” panel of experts to “peer review” the EPA’s final report, due in 2014. In advance of looking over the final report, the panel of 31 experts will “provide scientific feedback on EPA’s research in an open and transparent manner.” Yes, let’s hope it is open and transparent.

The EPA announcement from yesterday, including the names of those on the “independent” panel:

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Anti-Drilling/Fossil Fuel | Energy Services | GreenHunter Resources | Hydraulic Fracturing | Industrywide Issues | Marshall County | Regulation | Wastewater | West Virginia

Wheeling Councilwoman Vows to Prevent Frack Water Treatment Plant
March 26, 2013March 26, 2013

Less than two weeks ago, GreenHunter Water announced they had purchased a 10.8 acre barge terminal site in Wheeling, WV that sits along the Ohio River. GreenHunter has plans to convert the former gasoline storage facility into a shale wastewater handling and storage facility that will recycle wastewater so drillers can reuse it, or ship it by barge to other locations for disposal (see GreenHunter Buys Barge Terminal in Wheeling for Frack Wastewater).

GreenHunter made a mistake. They didn’t first approach Wheeling City Council to ask, “Mother, May I?” If they had, in all likelihood the outcome would have not been any different. At least one council member is strongly anti-drilling—Gloria Delbrugge (Democrat). She’s upset GreenHunter didn’t ask for permission first, and she’s pledging to stop the project altogether:

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Economic Impact | Industrywide Issues | Jobs | Ohio | Supply Chain | Wayne County (OH)

Supply Chain: OH Company Offered Tax Credit to Create 120 New Jobs
March 26, 2013March 26, 2013

More happy news from the Marcellus and Utica supply chain: Wooster Tool & Dye, a company that manufactures gas and oil separation tanks used by shale drilling companies, has been offered a seven-year tax credit to add 120 new full-time jobs to their existing workforce of 110. The new jobs will average $21 an hour. If the company accepts the deal (not yet a done deal, but it looks promising), they will agree to maintain operations in Wooster, OH for at least the next 10 years:

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Industrywide Issues | Wastewater

NFL QB Drew Bledsoe Stumps for Frack Wastewater Recycling Company
March 26, 2013March 26, 2013

MDN does not often run press releases from companies that service the drilling industry (supply chain stuff) unless there’s something newsworthy about it. We’ve just run across one such press release, from a company called Ecosphere that produces a technology to allow oil and gas companies to recycle drilling wastewater. The “new and different” thing about Ecosphere is not necessarily their technology (we don’t really know much about it), but instead the news is about who’s promoting it: former NFL superstar quarterback Drew Bledsoe (starting QB for the New England Patriots).

Bledsoe appeared on CNBC last Friday to promote Ecosphere’s fracking wastewater treatment solution, and Ecosphere is leveraging that appearance with a press release:

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Mar 26, 2013
March 26, 2013March 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: Tue, Mar 26, 2013”
Energy Companies | Gulfport Energy | Ohio | Statewide OH

Will OH Utica Turn Out to be Steak, or Just Sizzle? Eye on April
March 25, 2013March 25, 2013

Ohio will soon compile and release annual production numbers for Utica Shale wells drilled and in production during 2012. Ohio is one of the “least transparent states” when it comes to reporting energy output with annual filings. Drillers are required to provide production numbers for 2012 by March 31. Last year the Ohio Dept. of Natural Resources (ODNR) posted production numbers in just a few days—on April 2nd. However, last year’s reporting (from 2011) was for 5 wells—all from Chesapeake. This year the reporting will be from multiple drillers for 50-60 wells. Everyone is waiting, with baited breath. There’s a lot riding on the numbers reported this year.

Will the Utica numbers turn out to be like the Eagle Ford—a play prolific in profitable oil and natural gas liquids? Or will it be more of a less-profitable, methane-only play? A Reuters article takes a look at that question. The article also highlights some interesting information for just how far production numbers have fallen from initial peak rates for a pair of Gulfport wells…

Read More “Will OH Utica Turn Out to be Steak, or Just Sizzle? Eye on April”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Former PA DEP Sec. Hanger Blasts Interim Replacement for Krancer
March 25, 2013March 25, 2013

Last Friday Gov. Tom Corbett announced the disappointing resignation of PA PA Dept. of Environmental Protection (DEP) Sec. Michael Krancer (see Developing… PA DEP Sec. Krancer Resigns). In comments clearly tainted by his own run for governor against Corbett, former DEP Sec. John Hanger (who served under Gov. “Fast Eddie” Ed Rendell) blasted the temporary appointment of Corbett’s deputy chief of staff, E. Christopher Abruzzo, to serve as acting secretary while a new person is found to fill the position.

Hanger called Abruzzo’s appointment “bizarre and irresponsible”…

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Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | Processing Plants | West Virginia | Williams

Williams Methane Pipeline Ruptures in Marshall County, WV
March 25, 2013March 25, 2013

Early Friday afternoon, a 24-inch methane-only natural gas pipeline built and maintained by Williams near their Fort Beeler cryogenic processing plant ruptured. The pipeline is located 4 miles south of Cameron (Marshall County), WV.

Fortunately the blowout did not ignite and there were no injuries:

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Brooke County | Economic Impact | Hancock County | Industrywide Issues | Jobs | Supply Chain | West Virginia

WV Scores Another Shale Supply Chain Company – from Italy
March 25, 2013March 25, 2013

West Virginia is working hard to attract all kinds of businesses to the state that plug in to the shale industry supply chain—and it’s paying off. Reporting that the state gave them “some very interesting support,” Italian company Pietro Fiorentini, a pressure regulator and valve manufacturer, said they first need to gage interest to their products, but they’re already feeling good about WV and making plans to build a new, $9 million manufacturing plant in Weirton, WV.

Support from the state (and local municipalities) is not the only reason for the company’s interest in the northern panhandle of WV—geography is the other prime reason…

Read More “WV Scores Another Shale Supply Chain Company – from Italy”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Newspaper Wants New CSSD Drilling Standards Adopted as Law
March 25, 2013March 25, 2013

Right on cue and easily predicted, a left-leaning (mostly anti-drilling) mainstream newspaper, the Scranton Times-Tribune, has published an editorial not only endorsing the new Center for Sustainable Shale Development (see Important: Drillers & Enviros Form New Group, Launch Cert Program), they’ve breathlessly posited the “brilliant” idea that the standards proposed by the CSSD should be adopted as regulatory law throughout Pennsylvania. Which of course was the endgame all along…

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Blair County | Economic Impact | Energy Services | Industrywide Issues | Jobs | Marcellus GTL | Pennsylvania | Processing Plants

Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant
March 25, 2013March 25, 2013

Gas-to-liquids (GTL) plants appear to be catching on in the PA Marcellus Shale. Last September MDN told you about plans to build a GTL plant in Karns City, PA (western part of the state, see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA). GTL plants convert natural gas to other products like diesel fuel and gasoline.

Last week, a company announced in Altoona, PA that they plan to build a GTL plant in Blair County (central PA). Marcellus GTL said they will build a new $200 million (!) GTL plant in Duncansville. While the plant is being built it will provide 120 construction jobs. After it’s built, the plant will provide 30 full-time permanent positions working at the plant, and 60 “secondary jobs” in the area as well. The Duncansville GTL plant will produce sulfur-free gasoline and propane.

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

Ohio Enviros Not Happy with Sustainable Shale Center
March 25, 2013March 25, 2013

Last week MDN pointed out some of the initial reaction against the pronouncements of the newly formed and self-appointed Center for Sustainable Shale Development, or “CSSD” (see More Groups Weigh In For/Against New Sustainable Shale Center).

You can add the Ohio Environmental Council (OEC) to the list of those groups not in love with the CSSD, even though they haven’t bothered to read the CSSD’s standards yet. Why are they down on the CSSD? Because (pout, whine) they didn’t have a seat at the table. Then again, the OEC is calling for a moratorium on all drilling—an extremist and unreasonable position. Perhaps that’s why they weren’t invited…

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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Affidavit in Range PA Settlement Shows No Drilling Health Impacts
March 25, 2013March 25, 2013

There was a bit of media buzz last week when a sealed court case between Range Resources and the Hallowich family was unsealed at the litigated insistence of the Pittsburgh Post-Gazette and Washington Observer-Reporter (see Judge Orders Range/Landowner Settlement in PA Made Public). The headlines about the payout from Range to the Hallowich’s ($750,000) implied and continue to imply there was a cover up—that Range had somehow contaminated water by fracking and affected the health of the Hallowich’s and their children.

Problem is, it’s not true. The Hallowich’s signed an affidavit—a court document—in July 2011 stating neither their health nor the health of their children has been negatively affected by drilling (see the signed affidavit below). Which, of course, has led to a lot of frowny faces at the P-G and O-R.

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