Marcellus & Utica Shale Story Links: Tue, Jun 26, 2012
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Accidents | Bradford County | Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania
Chesapeake Pays 3 PA Families $1.6M for Methane Contamination
Chesapeake Energy settled a case with several landowners in the small community of Wyalusing (Bradford County), PA who say their well water was contaminated by Chesapeake’s nearby drilling activity. Three families will receive $1.6 million from Chesapeake which includes buying out their homes so they can move. Some 30 other area families are in various stages of litigation with Chesapeake over the same issue.For MDN, the fascinating aspect of this story is how the news has been covered by mainstream media. First, the news itself, then “the real news”:
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Businesses Form Coalition to Reach Drilling Industry in OH
Businesses in Muskingum County, Ohio are banding together to form a coalition to market themselves to the Utica Shale drilling industry that’s just getting started in the area.
Backed by the Zanesville-Muskingum County Chamber of Commerce, the new group, called the Muskingum Oil and Gas Coalition, currently has 28 member companies. They want to get to 130 members. Members pay $300 per year in dues to fund the new group.
Read More “Businesses Form Coalition to Reach Drilling Industry in OH”
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Who is GreenHunter Water’s New Mystery Marcellus Customer?
GreenHunter Water has picked up a new drilling company for their water management services (see the full press release below). The new customer is an independent driller somewhere in the Marcellus Shale play that owns leases on approximately 90,000 acres in Pennsylvania and West Virginia and is looking to expand. Thing is, GreenHunter won’t (or can’t) disclose the identity of this new mystery customer they’ve just signed on. But MDN thinks it can! There’s one independent driller who claims to have 90,000 acres of leases in PA/WV and is looking to expand, and that company is…
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Anadarko Set to Drill in Coshocton County, OH
It looks like Anadarko is getting ready to drill in the Utica Shale in Coshocton County, Ohio. New blue signs on rural roads have begun to spring up warning Anadarko truckers to not go beyond certain points (to limit road damage). When queried about the signs, Anadarko’s public affairs rep said:
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Energy Services | Hydraulic Fracturing | Industrywide Issues | New York | Pipelines | Spectra Energy | Statewide NY
Sierra Club Attacks FERC for Approving NYC Pipeline
Recently the Federal Energy Regulatory Commission (FERC) approved the construction of a 20-mile pipeline from New Jersey to New York City (see this MDN story). Spectra Energy is constructing the pipeline to the tune of $1.2 billion (a mini-economic boom for NJ/NY). The new pipeline and the cheap natural gas it will bring to NYC will reduce oil burning, which will be mandated starting in 2015 when NYC residents and landlords will no longer be allowed to burn No. 6 fuel oil. The new pipeline will be the equivalent of taking the emissions of 1 million cars off city streets per year. A good thing, no?
According to Sierra Club, that is a “no.” The Sierra Club doesn’t want cheap natural gas delivered to NYC, saving customers millions of dollars and saving the environment, because they don’t like fracking and the gas will mostly come from the Marcellus Shale. And that doesn’t fit with the the Sierra Club’s “attack everything natural gas” philosophy. So they’ve begun the process of protesting the approval for the pipeline, a process that will eventually end in federal court. Stunningly, in the paperwork they filed last week, they blame FERC for doing its job!
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The Reason We Have Low Natural Gas Prices: Marcellus
Startling new statistic from Bloomberg: The United States was able to produce enough energy from homegrown sources to meet 81 percent of our energy demand in 2011. Why? The miracle of hydraulic fracturing of shale.
Second startling new statistic: The Marcellus Shale alone produced 6.3 billion cubic feet per day in March. That’s enough gas to meet 62% of natural gas demand in 11 eastern states from Maine to Maryland. Astonishing.
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Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia
Marshall County, WV Pipeline Installation Problems
George Lagos and his small staff of water department employees who work at Marshall County (WV) Public Service District No. 4 (PSD No. 4) have a problem—too many gas pipelines being laid, not enough workers to inspect the process.
PSD No. 4 serves a large area of the county between Moundsville and Cameron. Lagos and two others are responsible for inspecting and maintaining 200 miles of water and other types of pipelines. When new natural gas pipelines are installed, Lagos is supposed to get 48 hours notice so they can monitor the installation. According to Lagos, that isn’t happening.
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OSHA Issues Hazard Alert for Sand Used in Fracking
A few weeks MDN wrote about potential health hazards to those who work with hydraulic fracturing from the sand used in the process (see this MDN story). That sand is silica, or crystalline sand. Very very fine—think extremely small like asbestos particles. And like asbestos, proper precautions must be taken when working around it to prevent it from lodging in the lungs and causing lung cancer.
The Occupational Safety and Health Administration (OSHA) along with the National Institute for Occupational Safety and Health (NIOSH), both federal agencies, have jointly issued a hazard alert for workers who handle sand during the process of fracking:
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Marcellus & Utica Shale Story Links: Mon, Jun 25, 2012
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
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Aither Chemicals | Energy Services | Industrywide Issues | Kanawha County | Processing Plants | Statewide WV | West Virginia
Aither Chemicals Still Trying for a Cracker Plant in WV
Will West Virginia ever get its own ethane cracker plant? It will if Aither Chemicals, based in South Charleston, WV has any say in the matter. MDN has been following the Aither story for some time. Aither Chemicals, a spin-off/subsidiary of Mid-Atlantic Technology, Research & Innovation Center, was established to build and operate ethane cracker plants that use modern technology making the plants smaller and less expensive to build and operate than tradition cracker plants (see this MDN story for background).Aither had a deal in principle with Bayer CropScience and MarkWest Energy to build one of these “new” kinds of cracker plants in the Charleston, WV area. That deal was set to be officially announced in mid-March (see this MDN story). But then the wheels came off the wagon and all was silent. No deal, no announcement. Until now.
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EIA Map of Shale Plays in 48 Lower U.S. States
MDN came across this handy map from the U.S. Energy Information Administration (EIA) showing the shale plays across all of the 48 lower U.S. states. Print it out and keep it handy for when you read the news, which each day seems to bring a new story about shale gas drilling and hydraulic fracturing. This map will be your guide to where the news is happening.
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Chesapeake Energy’s Board Changes, Archie Dunham New Chairman
You certainly can’t miss the news in the mainstream media that Chesapeake Energy has appointed five new board members and has “stripped” CEO Aubrey McClendon of his chairmanship (“stripped” even though weeks ago McClendon announced he would voluntarily step down from the role of chairman when a new chairman was found, such are the vagaries of headline writers).
The new incoming board members include…
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Belmont County | Energy Companies | Guernsey County | Gulfport Energy | Harrison County | Hydraulic Fracturing | Industrywide Issues | Ohio
Gulfport Drills Longest Horizontal Utica Wells to Date
Gulfport Energy reports it has just completed drilling the two longest horizontal Utica Shale wells—ever. The horizontal portion for one of the wells, located in Harrison County, Ohio, went over 1.5 miles.
Here’s the particulars:
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What’s the Reason Natural Gas Prices are So Low?
Why are natural gas prices at historically low prices? According to gas pricing experts, you can sum it up in a single word: Marcellus.
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New Deal Brings Midwest Sand to Marcellus/Other Shale Areas
Sand is a key ingredient in the hydraulic fracturing process. A special kind of sand, referred to as crystalline sand, is injected into cracks made during fracturing and stays in the cracks, propping them open so the gas can continue to come out (which is why it’s called a “proppant”). More sand will be on the way to the Marcellus and Utica region due to a new agreement between U.S. Silica, the nation’s second-largest sand producer, and Canadian Pacific Railway (CP). CP will be the exclusive rail shipper for U.S. Silica’s new frack sand facility being constructed in Wisconsin.
From the CP press release announcing the exclusive deal with U.S. Silica:
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Chesapeake Energy settled a case with several landowners in the small community of Wyalusing (Bradford County), PA who say their well water was contaminated by Chesapeake’s nearby drilling activity. Three families will receive $1.6 million from Chesapeake which includes buying out their homes so they can move. Some 30 other area families are in various stages of litigation with Chesapeake over the same issue.
Will West Virginia ever get its own ethane cracker plant? It will if Aither Chemicals, based in South Charleston, WV has any say in the matter. MDN has been following the Aither story for some time. Aither Chemicals, a spin-off/subsidiary of Mid-Atlantic Technology, Research & Innovation Center, was established to build and operate ethane cracker plants that use modern technology making the plants smaller and less expensive to build and operate than tradition cracker plants (