Marcellus Drilling News

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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Industrywide Issues | Pipelines

NatGas Transmission Pipeline Construction Went *Down* in 2012??
March 27, 2013March 27, 2013

This is a weird one. According to an article on the Fuel Fix blog, in 2012 construction of new major natural gas transmission pipelines plummeted to its lowest rate since 1997. They base their analysis on a recent Energy Information Administration (EIA) report that tracks new pipeline construction.

With all of the new pipelines announced and started last year (many of them in the Marcellus and Utica), it sure seems strange, almost unbelievable, to us. Are these numbers accurate? Did EIA, an organization with a stellar reputation for accuracy, miss something? Here’s the article from Fuel Fix:

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

Going Back to the Dimock Well, One More Time
March 27, 2013March 27, 2013

Let’s see, if you’re a former reporter who has written a book that trashes fracking and book sales aren’t so great, what can you do? I know! Try to juice sales by invoking two very magical words (be careful children, that you don’t utter these words in public): “fracking” and “Dimock.”

Even though both the PA Dept. of Environmental Protection (DEP) and the U.S. Environmental Protection Agency (EPA) have investigated Dimock repeatedly and have declared water wells in the area to be free from chemical contamination, perhaps (because of fictitious movies like Gasland), just a little more hay can still be made from Dimock…

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Belmont County | Economic Impact | Housing | Industrywide Issues | Ohio | Supply Chain

OH Company Says Housing Construction is Booming from Shale
March 27, 2013March 27, 2013

A Belmont County, OH construction company that builds homes and commercial buildings reports business is brisk, and the way they do business has now changed—all because of shale drilling:

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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Mar 27, 2013
March 27, 2013March 27, 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 | 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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