Marcellus Drilling News

Economic Impact | Industrywide Issues | Jobs | Statewide WV | West Virginia

New Study: Decline of Coal/Rise of Shale Gas in WV
September 7, 2012September 7, 2012

The West Virginia Center on Budget & Policy has just published a new report in an ongoing series called “The State of Working West Virginia.” This new report is titled “In Depth: The Gas Boom and Coal Bust” (a full copy is embedded below). The 34-page report, as the title indicates, takes a look at the tax and employment impacts of West Virginia’s coal industry which is sinking fast, and the upcoming Marcellus Shale industry which is rising fast.

The authors of the study advocate a new severance tax on shale gas (and coal) as one way to help the state. They also think the minimum wage should be increased from $7.25 per hour to $9.80. While most of the study centers on jobs and the economy of West Virginia, the section most MDN readers will want to read is Section Five, pages 21-27. That’s the section dealing directly with coal and natural gas in the state, including this interesting graph showing an estimate for natural gas production in WV through 2035:

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 7, 2012
September 7, 2012September 7, 2012

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

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Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Supply Chain

New Marcellus/Utica Shale Supply Chain Website Launches
September 6, 2012September 6, 2012

The Youngstown Business Journal and Farris Marketing today launch a new Marcellus and Utica Shale supply chain connection website called ShaleLink.com. The website offers free listings for businesses interested in in selling (or buying) services related to the shale oil and gas industry. But there’s a catch: Your business has to be located in either Ohio or Pennsylvania to be listed for free.

Here’s the press release/story from the ShaleLink.com website describing the new service:

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Hydraulic Fracturing | Industrywide Issues | New York | Roads | Steuben County | Tompkins County

Two Views on Road Use Agreements for Drillers in NY
September 6, 2012September 6, 2012

Some counties in Upstate New York are prepared for potential road damage caused by trucks and heavy equipment when and if shale gas drilling begins. Some of those counties are a lot more welcoming of drillers than others.

Steuben County in New York’s Southern Tier area—one of the five named counties likely to receive permits when drilling begins—is one of the counties ready with a road-use agreement for drillers. Interestingly, Vince Spagnoletti, Public Works Commissioner for Steuben County, says the road use agreement in Steuben originated not because of potential gas drilling but because of potential wind farm development:

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DTE Energy | Enbridge | Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Surprise! EcoNuts Object to Proposed Utica Shale Pipeline
September 6, 2012September 6, 2012

On Tuesday MDN brought you the news of a major new Utica Shale gas pipeline that will be built from Ohio through Michigan and into Canada by DTE Energy, Enbridge Inc. and Spectra Energy Corp (see this MDN story). It didn’t take long for anti-drillers, like EcoWatch, to announce their opposition.

This is what passes for news on MSNBC:

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Allegheny County | Economic Impact | Energy Services | Heckmann | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Pittsburgh Enviro Services Company Heckmann Merging, Moving
September 6, 2012September 6, 2012

Heckmann Corporation, a publicly traded environmental services company with a major footprint in Pittsburgh and throughout the Marcellus and Utica Shale region, announced on Tuesday they are merging with Power Fuels, a privately held environmental services company based in North Dakota, the largest such firm in the mighty Bakken Shale. The merger puts Heckmann well on the path to their stated goal of becoming the country’s largest environmental services company.

Soon after the announcement, it was disclosed on a conference call to analysts that the new headquarters for Heckmann would be moving from Pittsburgh to Scottsdale, Arizona. That announcement has created a fair amount of angst in Pittsburgh. However, Heckmann says they “anticipate” no layoffs in the Marcellus region:

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Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Food & Water Watch Targets NY Gov. Cuomo with Ad in NC
September 6, 2012September 6, 2012

The unreasonable, extremist and increasingly shrill organization Food & Water Watch (FWW), headquartered in Washington, D.C. (and attempting to interfere in New York’s debate over fracking) is targeting New York Gov. Andrew Cuomo with a full page advertisement in today’s Charlotte Observer. Wait, what? A full page ad in a North Carolina newspaper? Yep.

Gov. Cuomo will be in Charlotte today to speak to the New York delegation at the Democrat National Convention. He’ll then stick around to witness the sinking of the Titanic acceptance speech of Barack Obama. FWW apparently thinks Andy wants to run for president in 2016 and they want to run a head-fake on him that if he approves fracking in New York, his chances of winning in 2016 will be about the same as Obama’s chances of winning this year—close to nil. They also think Andy’s bound to pick up a copy of the Charlotte Observer while he’s in town, hence the ad.

Here’s a copy of the FWW propaganda ad appearing today:

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Chesapeake Energy | Encana Energy | Energy Companies

Encana Says Investigation Shows No Collusion with Chesapeake
September 6, 2012September 6, 2012

Back in June, Reuters somehow, magically, got ahold of private personal property (emails) from Chesapeake Energy and Encana Corp. Encana is Canada’s largest natural gas company. Reuters attempted to put the two companies on trial in the court of public opinion for “colluding” to keep prices down on leases in Michigan (see this MDN story). MDN still wonders, did Reuters break the law or aid and abet laws being broken in getting those emails?

But no attention is being paid to the mighty Reuters. No, the intended affect was accomplished: a plethora of investigations by various organizations began, not least of which is an ongoing investigation by the Obama Justice Department (see this MDN story). Encana did their own internal investigation by brining in outside help and the results are in from that investigation: Encana says they’re not guilty of colluding with Chesapeake.

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Pennsylvania | Statewide PA | Washington County

Political Stunt: PA Rep Wants Sec. of DEP Elected Position
September 6, 2012September 6, 2012

Making some rather wild claims about being denied access to information from the Pennsylvania Dept. of Environmental Protection, and apparently on a political vendetta against PA Gov. Tom Corbett and DEP Sec. Michael Krancer, State Rep. Jesse White (Washington County) has introduced two bills into the PA legislature that would turn Krancer’s position from being a secretary appointed by the governor into being a term-limited commissioner elected by voters statewide—similar to attorney general and state treasurer.

White introduced House Bills 2606 and 2607 to amend the Pennsylvania Constitution, saying:

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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Sep 6, 2012
September 6, 2012September 6, 2012

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

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Health Impacts | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC Continues Secret Meetings with Anti-Drilling Groups
September 5, 2012September 5, 2012

It’s now after Labor Day and still no word about a release of new drilling rules in New York State from the Dept. of Environmental Conservation (DEC). Last week MDN passed along word from the Joint Landowners Coalition of New York (JLCNY) sounding the alarm that Gov. Cuomo was being pressured to postpone a decision on releasing new fracking rules until after the November election (see this MDN story).

We may now know why they sounded the alarm. In what appears to be a troubling trend, the DEC continues to have informal (we would call them secret) meetings with anti-drilling environmentalist organizations, like the Sierra Club, NRDC and Riverkeeper. If the DEC were doing this with landowner groups there would be an outcry from those very same organizations. At any rate, the latest attempt by anti-drillers to stall the release of fracking rules seems to center on the call for yet another study—this one on potential so-called health affects from drilling.

From the New York Times late last week:

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BP | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio

BP Landmen Very Active in Columbiana County, OH
September 5, 2012September 5, 2012

More evidence of BP expanding their lease purchases in Ohio: Gunter Land Services, a landman agent for BP, has set up offices in Lisbon, Canton and Poland, OH. BP has also set up offices in Warren, OH. The landmen are actively canvassing landowners in the area in hopes of stringing together a new large block of acreage that BP can begin drilling “sometime next year.”

From the Youngstown Business Journal:

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

New Shale Wastewater Injection Well Opens in WV
September 5, 2012September 5, 2012

A new deep injection well for oil and gas drilling wastewater has just opened for business in West Virginia. GreenHunter Energy today announced the beginning of official operations for their new 6,100 foot deep injection well in Ritchie County, WV. According to GreenHunter CEO Jonathan Hoopes, they’re already near full capacity with incoming Marcellus and Utica Shale wastewater.

From the press announcement:

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Steuben County | Yates County

Anti-Drillers Hijack the Keuka Watershed Improvement Cooperative
September 5, 2012September 5, 2012

The board that oversees the Keuka Watershed Improvement Cooperative has voted to request Gov. Andrew Cuomo grant the Keuka watershed (Finger Lakes area of New York) protection against hydraulic fracturing—to put it “off limits”—as will be done with both the New York City and Syracuse watershed areas (if the draft version of the SGEIS drilling rules are passed as written).

But at least one village trustee in the area is concerned that the board has turned the Keuka watershed group into a lobbying (i.e. political) organization, and Penn Yan’s village attorney says the request’s language goes well beyond drilling restrictions.

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Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Lawyers in Act 13 Lawsuit Say State Legislature has “Supreme Authority”
September 5, 2012September 5, 2012

A quick update on the Act 13 lawsuit before the Pennsylvania Supreme Court: Lawyers for the state, on behalf of the governor, the Dept. of Environmental Protection and the Public Utility Commission, filed a 45-page brief yesterday defending the law. The seven towns suing the state to overturn the zoning portions of Act 13 (the part that disallows local municipal control over the siting of drilling and compressor plants, etc.) will file their brief later this month.

Among the arguments made by the state in defending the zoning portion of Act 13:

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Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Another Gulfport Utica Well in Harrison County Coming Online
September 5, 2012September 5, 2012

Gulfport yesterday reported initial peak results for its Utica Shale well called Boy Scout 1-33H, located in Deersville (Harrison County, OH). Although the flow rates are not as great as Gulport’s recently reported “alpha dog” well, the Wagner 1-H, also in Harrison County (see this MDN story), the new Boy Scout 1-33H is turning in respectable numbers:

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