Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD | Taxation

Maryland Politicians on Gas Drilling – Dumb & Dumber
November 28, 2011November 28, 2011

It’s really kind of funny to watch lawmakers and “leaders” in the state of Maryland talk about drilling in the Marcellus Shale, which, if it were to happen in the state, would happen in two western counties: Garrett and Allegany. Earlier this year Gov. Martin O’Malley appointed a 14-member commission to study the drilling issue, with a final report not due until 2014.

It’s a really big “if” that shale drilling will even be allowed in the state, but just in case it were to be allowed, politicians from Washington, D.C. suburbs (like Montgomery County, Maryland) want to tax the living daylights out of it:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Legislature Struggles with Gas Well Setback Provision
November 28, 2011November 28, 2011

Pennsylvania Gov. Tom Corbett is hopeful that the Republican-controlled Senate and House will pass new Marcellus Shale drilling legislation that reaches him by year’s end. But one of the political footballs is working out the issue of setbacks, or how far away a gas well can be drilled from a body of water like a creek, a private water well or a spring. Put the gas well too close and critics argue you increase the chance that an accident can damage the water supply. But make setbacks too far and it makes it practically impossible to drill any wells because the state has so many small waterways. That is, it becomes a back door way to prevent all drilling.

Here is the current state of play between the two differing versions of legislation that have passed in the Senate and House which now need to be reconciled before reaching Gov. Corbett:

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Belmont County | Lease & Royalty Payments | Ohio | Utica Shale

OH Landowner Group Seeks Driller for 45K Utica Shale Acres
November 28, 2011November 28, 2011

The Smith-Goshen Landowners Group in Belmont County, OH currently has 600 members and 45,000 acres of Utica Shale land available for lease. But they’re taking it slow and looking for a lease that will guarantee the safety of their farms and water supplies, according to Larry Cain, chairman of the group. They’re also looking for an even better deal than other landowners in Belmont County recently got from XTO Energy (a subsidiary of Exxon Mobil).

Read More “OH Landowner Group Seeks Driller for 45K Utica Shale Acres”
Energy Services | Enterprise Products Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH

Work on New Ethane Pipeline to Gulf Coast Now Underway in OH
November 28, 2011November 28, 2011

Survey work in central Ohio has already begun on a new ethane pipeline to be built by Enterprise Products Partners. The pipeline, which was recently announced (see this MDN story), will reach from the Marcellus and Utica Shale region in Washington County, PA all the way to Cape Girardeau, MO where it will connect with an existing pipeline to the Gulf Coast. Surveyors for the new pipeline have already turned up in Fairfield County, OH.

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Best of the Rest

Marcellus & Utica Shale Story Links: Monday, Nov 28, 2011
November 28, 2011

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

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About MDN | MDN Weekly Update

MDN Weekly Update – Nov 27, 2011: Is Fracking Safe?
November 27, 2011November 27, 2011

MDN left the previous poll up for a two week period to elicit more votes on the topic of where wet gas (ethane) should get processed: locally in the Marcellus/Utica Shale region, or pipeline it out to other locations like the Gulf Coast or Canada. MDN made it plain that we are not in favor of arbitrary government action to force private enterprise to select any given option—let the capitalist free market determine the best solution. However, we wanted to know what your preference would be, and most of you thought that keeping the ethane local for processing is the preferred outcome, given the choice.

Where should Marcellus & Utica ethane get processed?

In the Marcellus/Utica region (cracker plant) (61%, 149 Votes)
Either is fine, wherever it can be done the cheapest (37%, 91 Votes)
Outside the Marcellus/Utica region (pipeline it out) (2%, 6 Votes)

Total Voters: 246

Is hydraulic fracturing safe, in your opinion?

Time to take the pulse of MDN readers (again) on the subject of hydraulic fracturing. Increasing, those opposed to drilling have placed all of their bets on what to most people is a little-understood technology called hydraulic fracturing. Fear mongering is the standard tactic—transform a term people don’t understand into something to be feared so that it’s very utterance raises concern. Problem is, the tactic often works. What do you think? Do you think that the technology referred to as hydraulic fracturing, which is most often used to mean the entire horizontal natural gas drilling process, poses a significant health risk to the general population? Register your vote along the right side of any page on the website.

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

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Maryland | Statewide MD

The Future of Gas Drilling in Maryland? What Future?
November 23, 2011November 23, 2011

Will Maryland ever allow shale gas drilling in the Marcellus-rich western part of the state? The honest answer—at this point in time—is that it’s very doubtful. In June, Maryland Gov. Martin O’Malley signed an executive order requiring the state to study the issue until 2014, which means drilling in Garrett and Allegany counties would likely not begin before that time (see this MDN story).

Gov. O’Malley also created a 14-member advisory commission to develop recommendations. Here’s the prejudicial views of one of the committee members, a member of Maryland’s House of Delegates:

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Hydraulic Fracturing | Industrywide Issues | Medina County | Ohio | Regulation

Eastern OH Town Bans Fracking on Town-Owned Property
November 23, 2011November 23, 2011

On Monday, Hinckley, Ohio trustees voted to ban the use of hydraulic fracturing on township-owned property.

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Best of the Rest

Marcellus & Utica Shale Story Links: Wednesday, Nov 23, 2011
November 23, 2011

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

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Housing | Industrywide Issues | Pennsylvania | Statewide PA

New Study Claims Housing Crisis in NE PA from Gas Drilling
November 22, 2011November 3, 2012

A new report on a “housing crisis” in Pennsylvania’s northern-tier counties has just been released by The Institute for Public Policy and Economic Development, a research partnership among Keystone College, King’s College, Luzerne County Community College, Marywood University, Misericordia University, Penn State Wilkes-Barre, The Commonwealth Medical College, University of Scranton, and Wilkes University. A copy of the 200 page study is available to download below.

The study purports to show that when counties attract a lot of shale gas drilling activity, they also attract a housing crisis because workers in the drilling industry make more money than non-drilling industry residents and are willing to pay more to rent housing.

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Hydraulic Fracturing | Industrywide Issues | Meetings | Regulation

Picture of Hypocritical Anti-Driller at Recent NY DEC Hearing
November 22, 2011November 29, 2011

At the recent Department of Environmental Conservation (DEC) hearings on proposed new gas drilling regulations held in Binghamton, NY on Nov. 17, one of the attendees snapped the picture below of a protesting anti-driller.

MDN believes its readers are sharp enough to spot the obvious hypocrisy.

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

PA DEP Allows Acid Mine Water to be Used in Fracking
November 22, 2011November 22, 2011

The Pennsylvania Department of Environmental Protection (DEP) is attempting to “kill two birds with stone” by allowing Marcellus Shale gas drillers to use acid mine drainage from abandoned coal mines as water for hydraulic fracturing of shale gas wells. Yet another example of how gas drilling can be good for the environment.

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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Tennessee Gas Pipeline

Tennesee Gas Pipeline Receives Approval for Northeast Upgrade
November 22, 2011November 22, 2011

The Federal Energy Regulatory Commission (FERC) yesterday approved a request by the Tennessee Gas Pipeline Company to upgrade its Northeast Project with construction of extra pipeline loops in Pennsylvania and New Jersey, as well as compressor plant upgrades in both states. The end result will be an extra 636,000 dekatherms of gas delivered per year in the important northeast market—most of it Marcellus Shale gas.

From the FERC press release:

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Best of the Rest

Marcellus & Utica Shale Story Links: Tuesday, Nov 22, 2011
November 22, 2011November 22, 2011

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

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Jadela Oil

New Waterless Fracking Technology Tested in TX
November 21, 2011November 21, 2011

From time to time MDN has covered alternative fracking technologies. As a few MDN readers have repeatedly noted in the comments, a new technology which uses natural gas itself (instead of water) in the fracking process is being used in Canada and now, it is being tried in Texas. Jadela Oil is conducting what they call a “science experiment” in Maverick County, Texas, in the Eagle Ford Shale, to see if this new waterless fracking technology will work as well in our shale deposits as it does in Canada.

Jadela recently completed fracking their first well in September using propane/butane and they are waiting for full data on how the well is producing before making the results known.

Read More “New Waterless Fracking Technology Tested in TX”
Meetings

Insights from Pittsburgh Shale Gas Conference
November 21, 2011November 21, 2011

Last week Pittsburgh hosted a two day conference on Developing Unconventional Gas. A number of heavy-hitter speakers were on hand to discuss shale gas. Shell Chemicals, set to announce a new ethane cracker plant in the next two months, was among the speakers, as was Texas oil billionaire T. Boone Pickens.

Some of the speakers and the points they made:

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