Marcellus Drilling News

Energy Services | Industrywide Issues | Inergy | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

Commonwealth Pipeline Open Season Exceeds Expectations
June 19, 2012June 18, 2012

Inergy Midstream, UGI Energy and Capitol Energy Ventures are partnering to build a new 200-mile natural gas pipeline from Lycoming County, PA all the way to Rockville, MD (see this MDN story). Called the Commonwealth Pipeline, the new $1 billion pipeline will connect with several major interstate pipelines along its route.

Yesterday, Inergy et al reported that their non-binding open season to sign up customers to use the pipeline went better than expected. From the Inergy press release:

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Jun 19, 2012
June 19, 2012June 18, 2012

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, Jun 19, 2012”
Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Albany Times Union Announces Support for Fracking
June 18, 2012June 19, 2012

Whoa, wait a minute. The editorial board of the very liberal Albany Times Union is (gasp) in favor of limited fracking in New York State as a test. Really? Really.

But of course, they condition it all on prior assurances of safety from DEC and EPA, and they want all sorts of ands, ifs and buts inserted to conduct such a test.

Here’s what they said in a recent editorial (and below, why this is politically significant):

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Earthquakes | Hydraulic Fracturing | Industrywide Issues

NRC Study: Fracking Does Not Cause Earthquakes
June 18, 2012June 18, 2012

Does hydraulic fracturing—the process of forcing water, sand and a few chemicals down the bore hole and into shale formations—cause earthquakes? The National Research Council (NRC), part of the National Academies of Science, says the answer to that would be “no, fracking does not cause earthquakes.” That’s according to a new study just released by the NRC titled “Induced Seismicity Potential in Energy Technologies” (a link to the full study is embedded below).

The study found that out of a sample size of 35,000 oil and gas wells that have been horizontally fracked, earthquakes have been detected—get ready—in one instance. One. Which is statistically dead zero.

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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Susquehanna County | Williams

The Next Battleground for Shale Drilling: Compressor Plants
June 18, 2012June 18, 2012

As the number of Marcellus gas wells increase in Pennsylvania, so too do the number of pipelines to move the gas and the number of natural gas compressor stations. Compressor stations push the gas along the pipeline until the pipeline connects to a larger pipeline. Compressor stations are the next battleground for anti-drillers who want to plant the seeds of doubt.

For example, 29 permits have been or are being considered for compressor stations in northeastern PA, and of those, nearly two dozen of them are within a 15-mile radius of Dimock, PA. Since 2005, 383 permits have been issued statewide, but not all of them have been or will be built. The issue of contention is air pollution. Each station emits some volatile organic compounds (VOCs) and nitrogen oxides (NOx). How much they emit, and their combined effect in a region, is what is in dispute.

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

Enfield, NY Town Board Bans Fracking for it’s Landowners
June 18, 2012June 18, 2012

Another New York town votes to ban fracking for one year. Not that it makes a hill of beans worth of difference. The town board for Enfield, in Tompkins County, New York, voted last Wednesday to ban fracking:

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Economic Impact | Industrywide Issues | Ohio | Statewide OH

Shale Drilling’s Positive Effect on OH Commercial Real Estate
June 18, 2012June 18, 2012

The numbers in Ohio show that the Utica and Marcellus Shale drilling boom is already having a positive affect on the commercial real estate market. Late payments for commercial mortgages and loan delinquency rates have dropped, significantly, in just the past year.

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Jun 18, 2012
June 18, 2012June 18, 2012

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: Mon, Jun 18, 2012”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | New York | Statewide NY

Victory for NY Landowners in Chesapeake Force Majeure Case
June 15, 2012June 15, 2012

In a major victory for New York landowners, Attorney General Eric Schniederman’s office reached a settlement with Chesapeake Energy to allow 4,400+ landowners with a collective 264,000 acres to renegotiate old gas drilling leases that Chesapeake was attempting to extend using the “force majeure” clause. MDN has followed this story for more than a year (see this MDN story from May 2011 for history and background).

As a brief background, a number of New York landowners—many of them in the Southern Tier area of New York—signed gas drilling leases in 2000 with small drilling companies. The leases had a 10-year term. Most of the landowners got $3 per acre as a signing bonus. Those leases, along with leases signed prior to 2000, were bought by Chesapeake in the mid-2000s. In 2009, Chesapeake sent letters to New York landowners invoking the force majeure clause, which is legalese for “we’re extending the contract term due to extenuating circumstances, which we believe is our right to do.” The extenuating circumstance? The moratorium on high volume hydraulic fracturing that was implemented by then-Gov. David Paterson in 2008.

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

Dueling Rallies in Albany Over Cuomo’s Fracking Plan
June 15, 2012June 15, 2012

Both anti- and pro-drillers staged rallies in Albany, NY yesterday in response to the leaked plan by the Cuomo administration to allow limited hydraulic fracturing of gas wells in five Southern Tier counties.

Perhaps two dozen anti-drilling protestors showed up outside of Gov. Cuomo’s office for their PR appearance before the cameras. An hour later, they went to stand outside of a much a larger crowd of pro-drillers who staged a press conference featuring five town supervisors who were there to say they want drilling in their townships.

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

NY Gov. Cuomo Speaks Out on Leaked Fracking Plan
June 15, 2012June 15, 2012

Did New York Gov. Andrew Cuomo’s trial balloon plan to allow fracking just burst? Yesterday, the governor was peppered with questions about his unofficially announced plan to allow limited fracking of natural gas wells in five Southern Tier counties and only in communities that want it.

Appearing on an Albany radio program, Gov. Cuomo said:

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Hydraulic Fracturing | Industrywide Issues

Update on NETL Faults & Fracking Study
June 15, 2012June 15, 2012

Earlier this week MDN covered news of a study about to be released by the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) which looks at whether or not fracking fluids can find their way to the surface through faults or cracks (see this MDN story).

Based on the article MDN read, we floated the question, “Are we being set up?” Any time MDN reads about “this is science and incontrovertible and this will settle it once and for all” it sets off red flags—like we’re about to be railroaded.

Fortunately Pam Casey, a reporter with the West Virginia State Journal, read the MDN article and dug deeper. What she found is reassuring:

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Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

Gov. Corbett’s PR Campaign for $1.7B Cracker Plant Tax Break
June 15, 2012June 15, 2012

Pennsylvania Gov. Tom Corbett officially launched his public relations effort yesterday to get the PA legislature to pass a package of tax credits for Shell to build an ethane cracker plant in the state. The package of tax credits will amount to $1.7 billion over a 25-year period (up to $66 million per year) and will not begin until 2017 at the earliest.

Three of Corbett’s cabinet secretaries held a forum at the Beaver County community college yesterday, near the location of the proposed plant (in Beaver County), to push for the tax credits. When the new plant is built, it will result in 20,000 new jobs throughout the region.

Corbett is making a push to get the legislature to adopt the package by the end of June, before legislators adjourn for summer recess. But many legislators complain they don’t know enough about the plan (yet) to cast a vote either way. This effort by Corbett and his administration is an attempt to bridge that gap.

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Energy Companies | Industrywide Issues | Litigation | New York | Norse Energy | Statewide NY

Norse Says NY Force Majeure Settlement Doesn’t Apply to Them
June 15, 2012June 15, 2012

MDN reported today that New York Attorney General Eric Schneiderman’s office struck a deal with Chesapeake Energy over the issue of extending landowner leases in New York using the “force majeure” clause in the contract (see this MDN story). Norse Energy issued a press release saying essentially that the deal does not apply to them, and their force majeure claims are still in place until overturned by a court.

Here’s the Norse press release:

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Industrywide Issues | Jobs | Statewide WV | West Virginia

WV Oil & Gas Employment Numbers: Underreported by 14K?
June 15, 2012June 15, 2012

MDN reported two days ago that WorkForce West Virginia reported that direct jobs held by West Virginians in the oil and gas industry in the state had actually decreased from 2010 to 2011 (see this MDN story). We observed the total number of jobs cited, 2,179 in 2011, seemed really low, and perhaps inaccurate. WorkForce WV says that’s the total number of “direct” jobs held by West Virginians so we took them at their word.

But what’s a “direct” as opposed to an “indirect” (but created because of the drilling industry) job? Seems we’ve hit some semantic issues here. According to the Independent Oil and Gas Association of West Virginia, the actual number is something over 16,000 jobs:

Read More “WV Oil & Gas Employment Numbers: Underreported by 14K?”
Ohio | Statewide OH

OH State Land – About to be Leased for Drilling?
June 15, 2012June 15, 2012

Ohio Department of Natural Resources (ODNR) officials report their research into how much of the mineral rights the state owns beneath state land in 16 eastern Ohio counties is almost complete. What does that mean? In 2011 the state passed a law allowing the state to lease state-owned land for oil and gas drilling—at least for the portions where they own the rights. It appears that’s now about to happen.

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