Marcellus Drilling News

Accidents | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County

EPA Investigating Range Drill Site in Western PA
June 11, 2012June 11, 2012

The federal Environmental Protection Agency (EPA) is investigating whether or not drilling activity by Range Resources at their Yeager Marcellus Shale site in Washington County, PA is causing air pollution and groundwater contamination. Range operates a wastewater pond and a drill cuttings pit at the site.

Several families living close to the site filed a personal injury lawsuit last month against Range.

Read More “EPA Investigating Range Drill Site in Western PA”
Hydraulic Fracturing | Industrywide Issues | Regulation

Congressman Takes EPA’s Jackson to Task over Fracking
June 11, 2012June 11, 2012

The House Committee on Science, Space and Technology has a subcommittee called the Subcommittee on Energy and Environment. It’s chaired by Congressman Andy Harris (R-MD). Last week Congressman Harris sent a letter to Environmental Protection Agency (EPA) Administrator Lisa Jackson. The purpose of the letter? Essentially it puts Ms. Jackson on notice that Congress is tired of her agency’s witch hunt with respect to hydraulic fracturing, and encourages the EPA to stop being so sloppy with its work in that regard (MDN’s interpretation of what Harris said).

In essence, Mr. Harris accuses Ms. Jackson and the EPA of promoting a political agenda instead of performing real science. A copy of the full letter is embedded below.

Read More “Congressman Takes EPA’s Jackson to Task over Fracking”
Cuyahoga County | Industrywide Issues | Ohio | Property Value

Do Property Values Decrease When Drilling is Nearby?
June 11, 2012June 11, 2012

Does nearby drilling have a negative effect on real estate values? It’s a debate that has raged over the past several years. The drilling industry will say that on average, housing prices are unaffected by drilling. But if drilling is close—very close—there seems little doubt that it can negatively impact a homeowner’s property value. It’s one of the issues that those of us who support drilling must face honestly and openly. And figure out how to address it.

A case in point comes from a home owner in the suburbs of Cleveland, Ohio (Cuyahoga County).

Read More “Do Property Values Decrease When Drilling is Nearby?”
Industrywide Issues | NG Vehicles | Statewide WV | West Virginia

WV Task Force Investigates CNG for State Vehicles
June 11, 2012June 11, 2012

West Virginia Gov. Earl Ray Tomblin wants the state-owned vehicles in his state to run on compressed natural gas (CNG) produced right in his own state, and he’s assembled a task force to investigate how to make it happen:

Read More “WV Task Force Investigates CNG for State Vehicles”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Jun 11, 2012
June 11, 2012June 11, 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 11, 2012”
Ohio | Statewide OH | Utica Shale

Did This Map Get the Ohio State Geologist Fired?
June 8, 2012June 8, 2012

Speculation has run rampant about why Ohio’s official state geologist, Larry Wickstrom, chief of the ODNR’s Division of Geological Survey, was fired in May. Much of that speculation revolves around a PowerPoint presentation he created in March which essentially redrew the lines of where the best/most likely areas in the state would be to drill for oil and natural gas. A copy of Wickstrom’s full presentation, which has a lot of interesting maps and details, is embedded below.

The controversy seems to revolve around one particular map in the presentation (see the map immediately below). The map redrew boundary lines for the best drilling locations, in Wickstrom’s estimation, based on the data. Wickstrom has worked for the ODNR for 29 years. He’s a smart guy. But his map upset the apple cart for some, and less than two months later, he got his walking papers.

Read More “Did This Map Get the Ohio State Geologist Fired?”
Chesapeake Energy | Energy Companies

Fire Sale Begins: Chesapeake Sells Midstream Assets for $4B
June 8, 2012June 8, 2012

Chesapeake Energy announced today that they have sold their midstream assets, including their Chesapeake Midstream subsidiary, to Global Infrastructure Partners for a total deal worth $4 billion. Chesapeake’s midstream assets include pipelines and processing plants. The announcement comes just prior to their annual meeting being held today in Oklahoma City and no doubt is an effort by Aubrey McClendon to tamp down criticism of the mountain of debt the company has piled up under his watch.

The company has also put other assets, including 337,000 acres of Utica Shale acreage, on the auction block in a bid to reduce the debt load.

Read More “Fire Sale Begins: Chesapeake Sells Midstream Assets for $4B”
Economic Impact | Industrialization | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Avoiding Shale Energy Boom/Bust Cycle in Ohio
June 8, 2012June 8, 2012

Two Ohio State University graduate students, under the watchful eye of an advisor, have authored a policy brief titled “Making Shale Development Work for Ohio” which aims to provide politicians with guidance on how to avoid the so-called boom/bust cycle that shale energy “may” create in Ohio (a full copy of the brief is embedded below).

The grad students say Ohio needs to take steps now to ensure the state benefits from the shale energy boom in both the short- and long-term. Failure to do so, according to the brief, will “likely” have long-lasting negative effects. Among the brief’s recommendations are:

Read More “Avoiding Shale Energy Boom/Bust Cycle in Ohio”
Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

Muskingum Watershed Reverses Decision to Sell Water to Drillers
June 8, 2012June 8, 2012

Someone from the enviro-left movement has gotten to the Muskingum Watershed Conservancy District (MWCD) board and the board has caved. On June 6 news broke that the MWCD had earlier this year commissioned a study that would look at using three of the reservoirs it controls to make water sales to drillers for use in hydraulic fracturing (see this MDN story). The MWCD had already approved one deal to sell 11 million gallons of water from Clendening Lake to Gulfport Energy.

But the very next day—yesterday—the MWCD issued a press release saying no more water sales would be considered until the study is complete “later this year” (except for the 11 million gallons already agreed to). You scratch your head and say, “Well yeah, duh, that’s what the study is for!” But that’s not all.

Read More “Muskingum Watershed Reverses Decision to Sell Water to Drillers”
Beaver County | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

Shell: Final Decision on Cracker Plant Still 18-24 Mo. Away
June 8, 2012June 8, 2012

MDN previously warned that the final decision of where Shell will build an ethane cracker plant is not a done deal. It certainly is looking good—they selected a site in Beaver County, northwest of Pittsburgh—and they are deep into planning for that site. But Shell CEO Peter Voser was quoted as saying it would be “several years” before a go/no decision on whether to build it would be made (see this MDN story).

That timeline of several years was reaffirmed by a Shell representative yesterday in comments to the Pittsburgh Business Times:

Read More “Shell: Final Decision on Cracker Plant Still 18-24 Mo. Away”
Columbiana County | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Utica Shale

Columbiana County, OH Landowners Seek Minimum Royalty Law
June 8, 2012June 8, 2012

A few weeks ago MDN highlighted a story about a couple living in Columbiana County, Ohio who were due to get more than $375,000 in lease payments from Chesapeake Energy for their 65 acres of property, but the deal fell through when Chesapeake discovered the land under the property was already locked into a decades-old lease by Columbia Gas Transmission. The couple is suing to be released from that contract (see this MDN story).

We have word today that other landowners from the same area also affected by the Columbia lease are trying a different tact: Pass a state law imposing minimum royalties.

Read More “Columbiana County, OH Landowners Seek Minimum Royalty Law”
AES Drilling Fluids | Energy Services | Industrywide Issues | Jobs | Marshall County | West Virginia

New Drilling Mud Facility Opens in Marshall County, WV
June 8, 2012June 8, 2012

AES Drilling Fluids along with officials from the city of Benwood (Marshall County, WV) and state officials held a ribbon-cutting ceremony yesterday on a new $2 million drilling fluids facility just opened in the North Benwood Industrial Park. The new facility provides drilling mud to drillers in the Marcellus and Utica Shale.

Read More “New Drilling Mud Facility Opens in Marshall County, WV”
Accidents | Antero Resources | Energy Companies | Harrison County | Industrywide Issues | West Virginia

Antero Hits Aquifer in WV, Creates Backyard Geysers
June 8, 2012June 8, 2012

Antero Resources was drilling a natural gas well in the Sardis, WV area (near Clarksburg) when they hit a water aquifer in the area. It resulted in several abandoned nearby water wells to start gushing water, some of it blowing 10 feet or more into the air. But there were no chemicals being used during drilling, it was the initial stages and only water and air were used, and the air is what caused the problem.

Here’s what happened:

Read More “Antero Hits Aquifer in WV, Creates Backyard Geysers”
Bradford County | Chemung County | Industrywide Issues | Landfills | New York | Pennsylvania

The Economics of Shale Cuttings and Landfills
June 8, 2012June 8, 2012

Some of what comes out of the holes drilled for natural gas wells is rock and dirt. More precisely, a substance called “shale cuttings.” According to the MDN glossary, shale cuttings are: “Small pieces of rock that break away during the drilling process. Cuttings are screened out of the liquid mud by using shale shakers, or screens that allow the liquid to pass through but filter out the bits of rock.”

Since 2010 the municipal landfill in Bradford County, PA has accepted shale cuttings, making a tidy sum from it ($130,000). But the cuttings, and the revenue, stopped at the end of 2011. Why? Bradford County charges more than other landfills, like the municipal landfill across the border in Chemung County, NY. Not surprisingly, drillers haul their cuttings to cheaper landfills instead.

Read More “The Economics of Shale Cuttings and Landfills”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jun 8, 2012
June 8, 2012June 8, 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: Fri, Jun 8, 2012”
Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

How Can Businesses Sell to the Marcellus Shale Supply Chain?
June 7, 2012June 7, 2012

A question often asked of MDN editor Jim Willis by small and medium sized business owners and managers is this: How can we do business with the drilling industry? That is, how can we plug into the drilling industry supply chain?

A new study (embedded below) released by the University of Pittsburgh’s Institute for Entrepreneurial Excellence aims to answer just that question. The study, titled “Understanding the Marcellus Shale Supply Chain,” outlines how the natural gas industry in Pennsylvania works, and how companies can plug into that system to provide goods and services.

Read More “How Can Businesses Sell to the Marcellus Shale Supply Chain?”