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Marcellus Drilling News
  • Chesapeake Energy | Energy Companies

    Chesapeake & KKR Form Partnership to Invest in Royalties

    March 6, 2012March 6, 2012

    Chesapeake Energy and Kohlberg Kravis Roberts (KKR) are joining forces to invest in buying royalty interests in shale drilling areas in the United States. KKR is a global investment firm with $59 billion in assets under management. Under the deal, Chesapeake will find the deals and contribute 10 percent of the money, and KKR will kick in the other 90 percent of the money. The initial commitment is to invest $250 million.

    From the joint press release:

    Read More “Chesapeake & KKR Form Partnership to Invest in Royalties”

  • Industrywide Issues | Lackawanna County | Landfills | Pennsylvania

    Scranton Landfill Request for More Shale Cuttings Approved

    March 6, 2012March 6, 2012

    Exactly one month ago MDN reported that Keystone Sanitary Landfill, a privately owned and operated municipal solid waste landfill located in Dunmore, PA (a Scranton suburb), had applied to increase the daily volume of shale cuttings (leftover rock waste from drilling) from 600 to 1,000 tons per day. They also requested from the Department of Environmental Protection (DEP) a change so they could receive the cuttings in an “unprocessed or unsolidified form” (see this MDN story).

    Read More “Scranton Landfill Request for More Shale Cuttings Approved”

  • Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Washington County

    PA Towns Banding Together to Sue State Over New Drilling Law

    March 6, 2012March 6, 2012

    Last month’s passage of new Marcellus drilling regulations in Pennsylvania has some local municipalities grumbling that the state’s “Act 13” regulating oil and gas drilling and superseding local zoning ordinances takes away their ability to, yes, control drilling in their local municipalities. Which of course is what the law is designed to do!

    Several municipalities, Cecil Township the latest, are making moves to band together and sue the state over the new law in an effort to overturn the Act 13 provision.

    Read More “PA Towns Banding Together to Sue State Over New Drilling Law”

  • Allegheny County | Butler County | Industrywide Issues | Jobs | Pennsylvania | Washington County

    Dry Gas Drilling Slowdown Results in Layoffs in PA

    March 6, 2012March 6, 2012

    Although historically low natural gas prices are great for consumers, it’s not so great for some in the shale gas drilling industry. Because drillers are changing their focus away from drilling in the “dry gas” areas of the Marcellus Shale play and instead focusing on the “wet gas”—or liquids-rich—portion of the play, it causes a slow down for some businesses and leads to layoffs in certain industries, like title searching. Title searches of property deeds are a necessary part of acquiring leases for drilling.

    A title search company in western PA has just laid off nearly half of their staff:

    Read More “Dry Gas Drilling Slowdown Results in Layoffs in PA”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Mar 6, 2012

    March 6, 2012March 6, 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, Mar 6, 2012”

  • Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

    OH Gov. Kasich to Introduce New Tax on Shale Gas Drilling

    March 5, 2012March 5, 2012

    John KasichThis one is sure to disappoint landowners. In an Obamaesque move, conservative Republican Ohio Gov. John Kasich is set to propose a new tax on Utica and Marcellus shale gas drilling in order to reduce Ohio state income taxes.

    Read More “OH Gov. Kasich to Introduce New Tax on Shale Gas Drilling”

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

    NY Gov. Cuomo Signals Fracking Issue is “How” and Not “If”

    March 5, 2012March 5, 2012

    Finally some good news for New York landowners who want shale gas drilling to go forward in the state. Lately, it’s seemed as if New York Gov. Andrew Cuomo was backing off his support for shale gas drilling. He elected to not even mention it in this year’s State of the State address, even though there was a section about it in his prepared remarks (see this MDN story). Then he made a comment about the status of the review process and making on determination on whether drilling will even be allowed (see this MDN story). And then a comment to a Syracuse newspaper editorial board about a decision coming “in a few months” on fracking (see this MDN story), the implied meaning was whether or not it would be allowed at all.

    Add it all up and it certainly appeared that Gov. Cuomo was stepping back from his earlier support of drilling. But Andrew Cuomo is the consummate politician and perhaps that was all smokescreen. Last Friday, in a radio interview, he all but said fracking will go forward in the state, it’s just a matter of how and when it will happen, not if.

    Read More “NY Gov. Cuomo Signals Fracking Issue is “How” and Not “If””

  • Accidents | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

    AP’s Newest Non-Story About Dimock, PA

    March 5, 2012March 5, 2012

    From time to time, the Associated Press will write a story about the gas drilling issue. Because a huge number of newspapers in the U.S. subscribe to the AP service, they run the story and overnight a single story, or various versions of the story, is run in hundreds of newspapers nationwide creating an echo chamber making it seem as if it’s new news. It’s happened again with another non-story about Dimock, PA. By now most MDN readers will know what Dimock is about—an attempt to create a link between hydraulic fracturing and chemical contamination of a water aquifer. If you need a background on the controversy, click here for MDN’s stories on Dimock.

    The latest non-story story from the AP is an announcement that the EPA, that has been conducting water testing in the Dimock area, will release its first test results this week. That’s the sum total of the news in the story. But the AP story includes lots of background and fluff. One of the interesting backgrounder interviews is with a geologist from northeastern PA near Dimock:

    Read More “AP’s Newest Non-Story About Dimock, PA”

  • Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

    Susquehanna County, PA Hosts 8 of Top 10 Shale Gas Wells

    March 5, 2012March 5, 2012

    Although Dimock, in Susquehanna County, PA seems to be known for water problems from unrelenting negative press, it should be known for another reason—it’s home to the state’s number one producing Marcellus Shale gas well, the King 2. In fact, Dimock and neighboring Springville Township host eight of the state’s 10 most productive shale gas wells, according to recent reports from the PA DEP.

    Read More “Susquehanna County, PA Hosts 8 of Top 10 Shale Gas Wells”

  • Chesapeake Energy | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues

    Rolling Stone Shale Gas Hit Piece, Chesapeake Responds

    March 5, 2012March 5, 2012

    Last week Rolling Stone magazine ran a hit piece on the natural gas industry in general, and Chesapeake Energy and its CEO Aubrey McClendon in particular. The article, titled “The Big Fracking Bubble: The Scam Behind the Gas Boom” tries to recycle the theme already postulated by Ian Urbina in the New York Times some months ago that energy companies are vastly overstating just how much gas there is, and that they are in essence perpetrating a fraud on investors by covering it up. Rolling Stone, the NYT and other anti-drilling “media” outlets (I’d call them propaganda outlets) all use the same language and same arguments, trying to drive into readers’ psyche that shale gas drilling is a “Ponzi scheme” hoping to connect Bernie Madoff with gas drilling in your mind. Nice try Rolling Stone.

    On Saturday, Chesapeake issued the following response, exposing the fallacies and lies found in the Rolling Stone article:

    Read More “Rolling Stone Shale Gas Hit Piece, Chesapeake Responds”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Mar 5, 2012

    March 5, 2012March 5, 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, Mar 5, 2012”

  • About MDN | MDN Weekly Update

    MDN Weekly Update – Mar 4, 2012: Shale Gas Jobs

    March 4, 2012March 4, 2012

    drill here work nowThe past few weeks there have been a lot of stories about, and interest in, shale industry jobs. When I compile the “top five most viewed stories” for the past week and the past month, I leave out of the list hits on non-article pages, like the Landowner’s directory, which usually receives as many or more reads as some MDN stories in a given week.

    One item that caught my attention for this past week was the number of views for a calendar item—the first time I recall a calendar item getting more views than a story! The calendar item as for a job recruitment fair near Pittsburgh held yesterday: PIOGA Job Recruitment Expo – Washington, PA. That little calendar entry on MDN received the second most number of reads in the past seven days (731), although I did not include it in the “top 5” stories list below (I don’t include calendar items in that list, only stories).

    I asked myself, why that calendar item? In digging through the web analytics, I found the vast majority of incoming visitors to that page came from Google searches, which says to me there was local media coverage in Pittsburgh for the job fair, and that coverage sent people scrambling to search for more details on the expo. Many people fire up Google to perform a search for information. The number one search phrase people used in Google to find more details for the expo, at least for the ones who came to MDN, was “pioga recruitment expo”. MDN’s calendar item is, as of today, the number two result for that search on Google. PIOGA themselves are the number one result.

    There really is no mystery in why people are interested in shale gas jobs. The job-generating power of shale gas can not be overstated. It’s potential is huge. Over the past week we had the release of a study predicting 65,000 new jobs in Ohio from shale gas drilling by 2014—two short years away. New facilities are being built (see this article on Baker Hughes) creating even more jobs. And anecdotally, it seems almost daily in my own personal circle of family, friends, and acquaintances, I hear of someone who now works in the shale industry now. What’s so amazing about that? I live in New York, where there is no drilling! To be fair, I live about 15 miles from the border of Susquehanna County, Pennsylvania, and there is a LOT of drilling happening there—and that’s where my family and friends are finding work. So even though New York is still stuck at the starting gate with respect to drilling, there are some New Yorkers who live near border areas in what is called the Southern Tier of New York who are benefiting from the drilling that happens in PA. Go PA!

    With an abundance of new shale jobs, I wonder (and hence this week’s poll question), do either you, or someone you know (friend, family member, acquaintance) work for the shale gas industry? I would like to know how widespread this phenomenon is. Register your vote on the right side of any page on the website.

    poll resultsLast Week’s Poll Results

    Actually, last week’s poll ran for two weeks. I wanted to know whether or not you have enough land to lease and if you do, if it’s now under lease for drilling. The poll found of those who own enough land to lease, it’s pretty close between those who have signed and those who have not—roughly half and half. Thanks for participating!

    For those in the Marcellus/Utica Shale region, is your land:

    Leased for drilling (42%, 167 Votes)
    Not leased for drilling (48%, 191 Votes)
    Does not apply to me (10%, 40 Votes)

    Total Voters: 398

    Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.

    Happy reading,
    Jim Willis, Editor

    Read More “MDN Weekly Update – Mar 4, 2012: Shale Gas Jobs”

  • Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY | Tompkins County

    NY Towns Ban All Drilling, Not Just Horizontal Fracking

    March 2, 2012March 2, 2012

    throw baby out with bathwaterResidents who live in New York townships that can’t seem to wait to ban drilling should be aware of something. These bans are bans of all gas drilling, not just horizontal hydraulic fracturing. That’s what residents in Enfield (Tompkins County), NY found out on Wednesday at a meeting with the town attorney. The Enfield town board plans to vote to enact a one-year moratorium in late April or early May, and the moratorium is on vertical as well as horizontal gas well drilling.

    Read More “NY Towns Ban All Drilling, Not Just Horizontal Fracking”

  • Hydraulic Fracturing | Industrywide Issues | Public Opinion

    Josh Fox Bullies Filmmaker, Decides to Make Own Documentary

    March 2, 2012March 2, 2012

    Move over Josh Fox and Gasland. There’s a new documentary on the way that will set the record straight and deliver the real truth about fracking. The new documentary is appropriately named FrackNation. Filmmaker and journalist Phelim McAleer is working on it now. In today’s New York Post, McAleer writes about how he was inspired by Josh Fox’s legal bullying into creating it:

    Read More “Josh Fox Bullies Filmmaker, Decides to Make Own Documentary”

  • Hydraulic Fracturing | Industrywide Issues | Regulation

    New Regulations to Control Fracking on the Way from Obama

    March 2, 2012March 2, 2012

    For all of President Obama’s talk about the promise of shale gas and his support of it, once again he and his administration’s actions do not match the talk. On Wednesday, Obama’s Interior Secretary, Ken Salazar, told a congressional hearing that his department is going to issue new federal regulations to control hydraulic fracturing.

    This is a clear violation of state’s rights to regulate oil and gas development within their own borders. But unconstitutionally ceasing power is nothing new for the Obama administration. The end result of these new regulations will be to slow down new shale drilling domestically.

    Read More “New Regulations to Control Fracking on the Way from Obama”

  • Hydraulic Fracturing | Industrywide Issues

    Polish Geological Institute Study Finds Fracking is Safe

    March 2, 2012March 2, 2012

    Researchers from the Polish Geological Institute have just released a study of the environmental impacts of hydraulic fracturing. Poland has its own shale deposit, the Silurian shale, which is thought to contain the right mix of high organic content to make it productive for shale gas drilling. The Poles keep hearing from the United States how controversial fracking is, so they decided to conduct their own study. What did they find?

    The study found that soil, air and water are all just fine if drilling is done according to regulations. That is, hydraulic fracturing is safe. A copy of the report summary is embedded below. This is the accompanying press release issued by the Institute:

    Read More “Polish Geological Institute Study Finds Fracking is Safe”

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