Marcellus Drilling News

Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants

Kentucky Ethylene Plant Switches to Marcellus Ethane
October 4, 2012October 4, 2012

Although a very small area of Kentucky is underlain by the Marcellus Shale, to MDN’s knowledge, there is no active shale gas drilling in the state. But that doesn’t mean Kentucky isn’t about to benefit in a big way from the Marcellus Shale.

A few days ago, Westlake Chemical Corporation announced they will convert an ethylene manufacturing plant they operate in Calvert City, KY from using propane to using low-cost ethane from the Marcellus Shale as their raw material or “feedstock.” They’re also increasing the capacity of the plant.

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Ohio | Statewide OH | Utica Shale

New IHS Report Compares OH Utica Shale to TX Eagle Ford Shale
October 4, 2012October 4, 2012

IHS Cera, a global consulting and information service, recently published a new report on the Utica Shale and its potential. Although MDN has not seen the full report, the press release announcing the report contains a good bit of useful information about the IHS findings. IHS compares the Utica to the highly productive Eagle Ford Shale in Texas, saying there are many parallels, but cautioning it’s still very early in the game.

Here’s the full release with lots of juicy tidbits, including which well has produced the most oil in the Ohio Utica:

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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 4, 2012
October 4, 2012October 4, 2012

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

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Broome County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation

NY Judge Throws Out Binghamton Fracking Moratorium
October 3, 2012October 7, 2012

The City Council for Binghamton, NY passed a de facto drilling moratorium at the end of December of 2011, just before the all-Democrat city council was about to be reconstituted with a few new Republican members (see this MDN story). At the time, Mayor Matthew Ryan and City Council were warned of possible litigation.

The law as passed was not (according to City Council and Ryan) an actual moratorium. Instead, they used the “police powers” of the city to enact a law instead of a zoning ordinance, believing it to be a clever legal maneuver insulating them from meeting the strict requirements for a true moratorium.

Yesterday New York Supreme Court Judge Ferris Lebous threw out the law as invalid, calling it what it really is: a moratorium. A copy of the judge’s ruling is embedded below. MDN will walk you through it…

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

Cuomo Says He Hasn’t Backed Away from Fracking
October 3, 2012October 2, 2012

Gov. Andrew Cuomo made the following comments about fracking yesterday during a tour of Syracuse, NY economic development projects (in order to shore up his sagging support in Upstate):

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Hydraulic Fracturing | Industrywide Issues | Regulation

5 U.S. Senators Send Letter to EPA About Diesel Rule
October 3, 2012October 2, 2012

On May 10, the federal Environmental Protection Agency (EPA) issued a draft guidance document regarding the use of diesel fuel during the fracking process (see the full document embedded below). This is just another in a series of ongoing attempts by the EPA to federally regulate fracking. Such regulation, according to the U.S. Constitutional, is illegal and only can be done by the individual states. But that doesn’t stop the EPA from trying.

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

PA Enviro Groups/Politicians Stage Small Rally in Harrisburg
October 3, 2012October 2, 2012

Even though fracking has proven to be safe in Pennsylvania, there are still extreme environmental groups (and legislators) in the state who want to ban it. Leading the pack, as usual, is the Sierra Club and Delaware Riverkeeper. A small group of anti-drillers gathered in Harrisburg yesterday to get a little press attention for their cause:

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Air Quality | Industrywide Issues | Pennsylvania | Processing Plants | Statewide PA

Not Everyone Happy with Reopening of Philly Refinery
October 3, 2012October 2, 2012

By all accounts the Marcus Hook refinery (near Philadelphia) is a Marcellus Shale success story. Sunoco shut it down in April, but later sold a controlling interest in the facility to the Carlyle Group (see this MDN story), retaining a one-third interest. The deal saves 850 jobs at the plant. Plans from Carlyle (under the name Energy Transfer Partners) are to use the refinery to process and market propane and ethane from western PA’s Marcellus region (see this MDN story).

But not everyone is happy about the refinery reopening. The Clean Air Council has filed an appeal with the state Dept. of Environmental Protection claiming the DEP’s decision (as part of the sale) to consider the refinery part of an existing, currently open refinery for the purposes of air pollution emissions essentially allows it to emit more emissions than if it were treated as a separate facility. The United Steelworkers union says “not so fast.” They disagree with the Clean Air Council.

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

Guest Viewpoint: Time for Cuomo to Set a Deadline [Free]
October 3, 2012October 2, 2012

The following open letter to Gov. Cuomo is written by attorney Christopher Denton from Elmira, NY.

An Open Letter to the Governor of the State of New York

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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Oct 3, 2012
October 3, 2012October 2, 2012

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 | Regulation | Statewide NY

JLCNY: Gov. Cuomo has Betrayed NY Residents
October 2, 2012October 2, 2012

The Joint Landowners Coalition of New York (JLCNY) is a “coalition of coalitions” representing more than 77,000 landowners throughout New York State. Consider it the official, collective voice of landowners interested in allowing shale gas drilling on their land. For many months MDN has marveled at how restrained the JLCNY has been with regard to the foot-dragging on the part of Gov. Andrew Cuomo and DEC Commissioner Joe Martens when it comes to the release of new drilling rules. MDN would “shoot from the lip” and say “Sue ‘em!” The JLCNY would calmly say, “Let the process work. In the end, we’ll have the best drilling laws in the world, and no one will be able to say we didn’t take our time and do it right.” And of course they’re correct.

Has the JLCNY finally had enough of the foot-dragging and delay tactics? Have they finally reached their patience limit and are the gloves are about to come off? Here’s a JLCNY press release received by MDN yesterday:

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

Which Driller Had Top 2 Producing Wells in PA for 1H12?
October 2, 2012October 2, 2012

Yesterday MDN shared with your our detailed look at the production numbers—the amount of natural gas and gas liquids—produced in the entire state of Pennsylvania for the first half of 2012 (see this MDN story). Today the Philadelphia Inquirer, quoting Powell Shale Digest and other sources, takes a closer look at well by well statistics for the same period.

Here’s a few interesting tidbits brought to light by their analysis, and the surprise answer for who had the top two producing wells in the state for the first half of the year:

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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Town of Chenango, NY Residents Sound Off on Fracking
October 2, 2012October 2, 2012

Most townships in Broome County, NY have passed resolutions with language saying something to the effect of “Let’s let the state Dept. of Environmental Conservation do it’s job, we won’t pre-judge the outcome. We won’t enact a ban or moratorium ahead of the DEC.” And rightly or wrongly, both sides of the fracking debate take that to mean a show of support for drilling. The only municipality in Broome County to enact a moratorium (so far) is the City of Binghamton, which was done in an eleventh hour political stunt by Binghamton’s failed Mayor Matthew Ryan (see this MDN story). His folly is now costing city taxpayers big bucks to defend.

The first town in Broome County to consider a moratorium or outright ban on fracking is the Town of Chenango. Last night the town board held a public hearing to elicit comments from residents. MDN was there for a portion of it.

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

Andrew Cuomo’s Fracking Confidant
October 2, 2012October 2, 2012

Everyone has noticed it: There’s been a change in New York Gov. Andrew Cuomo’s position on hydraulic fracturing. It had seemed, for over year, that he was charting a path down the middle. He would allow fracking, eventually. Earlier this year he floated the idea of allowing fracking in a limited fashion in a few locations as a test—to closely watch what happens and to alleviate concerns for those who oppose it. He wanted to prove to everyone that it can be done safely. It was a true “wisdom of Solomon” kind of proposal. What could make more sense?

But politics never makes sense, and politics, not science and facts as the governor has long said, has reared its ugly head. And everyone has noticed it. The question is, what or who changed Andy’s mind? Perhaps we’ll never truly know, but a recent article in the New York Times may give us some insight. In a word, what may have turned Andy against fracking was a family confidant.

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Beaver County | Energy Companies | Industrywide Issues | NGLs | Pennsylvania | Processing Plants | Shell

Shell Volunteers to Pay Local Taxes on PA Ethane Cracker
October 2, 2012October 2, 2012

In order to lure Shell to build its multi-billion dollar ethane cracker plant in Beaver County, PA, the state passed a law granting Shell tax exempt status for the next 25 years. Problem is, the place where they will build the plant currently pays school and town taxes ($344,000 per year) that would disappear under the state plan. So Shell has offered to pay 110% of those taxes over the next 25 years—to avoid a PR problem and to support the local community where it will be doing business for at least the next generation.

Here’s the details:

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Accidents | Elk County | Industrywide Issues | Pennsylvania | Wastewater

Wastewater Truck Accident in Elk County, PA
October 2, 2012October 2, 2012

Accidents involving the shale drilling industry are so rare, when one happens, it’s news. And so we bring you news of a brine truck (shale drilling wastewater) that was in an accident and flipped over in Ridgway, PA (Elk County). Even though it was a serious accident, no wastewater leaked and no one was seriously injured.

Here’s an account of what happened:

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