Marcellus Drilling News

Economic Impact | Energy Companies | Industrywide Issues | Ohio | Processing Plants | Shell | Statewide OH | Statewide WV | West Virginia

Ohio Offers Shell Cracker Plant $1.4B in Tax Incentives
January 2, 2012January 2, 2012

Competition to attract an ethane cracker plant is heating up. West Virginia has made no bones that they intend to be the winners of the investment that will be made to build an ethane cracker plant to be built by Shell. The plant will cost upward of $2 billion and will create thousands of jobs to build the plant, operate the plant, and just as importantly, in the industries that will locate near the plant once it’s operational. It’s an economic jackpot worth $5 billion or more, and those who are in the game to attract it are in it to win.

Read More “Ohio Offers Shell Cracker Plant $1.4B in Tax Incentives”
Earthquakes | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Trumbull County | Wastewater

Youngstown Earthquake and Fracking: Is There a Connection?
January 2, 2012January 2, 2012

A 4.0 earthquake in the Youngstown, OH area on Saturday afternoon is thought to be connected to a local injection well. MDN has chronicled previous episodes of earthquakes thought to be connected with injection wells in Arkansas and Texas. Saturday’s earthquake was the 11th in the Youngstown area in recent months, and by far the strongest. The theory is that fluid, which is pumped nearly two miles underground under very high pressure, had migrated to a nearby fault and is causing the fault to shift.

Until it can be determined what, exactly, is happening, all further injection of fluid into the well has been stopped. In fact, fluid injection had stopped a day earlier, on Friday, before Saturday’s quake. But pressure in the well would remain high for a period of time, likely leading to the 4.0 quake.

Read More “Youngstown Earthquake and Fracking: Is There a Connection?”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

The Real Story Behind Binghamton’s Fracking Ban
January 2, 2012January 2, 2012

MDN recently covered the vote to enact a two-year moratorium on hydraulic fracturing in the City of Binghamton (see MDN stories here). It took some time, but we finally received a copy of the actual legislation that was enacted. The legislation is embedded below, along with all of the associated paperwork that goes with it.

Tom Shepstone, head of Energy in Depth’s Northeast Marcellus Initiative, was also at the Binghamton City Council public hearing and the vote that followed. Tom has written an excellent article titled, “Pulling the Curtain Back on the Binghamton Ban Vote.” MDN recommends you read it for a proper understanding of just what went on behind the scenes.

Read More “The Real Story Behind Binghamton’s Fracking Ban”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Lackawanna County | Pennsylvania | Southwestern Energy

PA Town Takes Innovative Approach in Drilling Oversight
January 2, 2012January 2, 2012

Instead of trying to regulate Marcellus drilling inside municipal borders, Benton Township (Lackawanna County), PA took a different approach when Southwestern Energy recently drilled an exploratory well. Benton hired an independent engineer to monitor drilling and construction of the well. According to township officials, the process has been “an ‘unequivocal’ success.”

Read More “PA Town Takes Innovative Approach in Drilling Oversight”
Industrywide Issues | Roads | Statewide WV | West Virginia

WV Road Improvements Paid for by Shale Gas Drillers
January 2, 2012January 2, 2012

Pennsylvania’s rural roads are seeing upgrades because of gas drilling activity. When drilling comes to a municipality or county, and with it an increase in truck traffic, drillers step up to the plate and repair the roads that they use. Most of the time roads are left in better shape than before drilling began.

West Virginia is now starting to see the same improvements with their roads:

Read More “WV Road Improvements Paid for by Shale Gas Drillers”
About MDN | MDN Weekly Update

MDN Weekly Update: 2011 in Review, Looking Ahead to 2012
January 1, 2012January 1, 2012
Thank you Marcellus Drilling News readers for making MDN your source for news and information about drilling in the Marcellus and Utica Shales in 2011. And welcome to 2012! Last year was quite a ride for MDN, going from occasional posts of new stories prior to January, to daily postings Monday through Friday starting in January. MDN’s audience grew from a few thousand people per month to nearly 30,000 unique people visiting and reading stories on the site each month by the end of the year.

A few statistics to share with you from the MDN website for 2011:
- 198,720 unique/individual people visited the site in 2011;
- Those 198,720 people visited the site 354,174 times during the year;
- When they visited, they viewed a cumulative 823,596 pages;
- And if you averaged the amount of time they stayed, it was 2 minutes 49 seconds each time they visited.
- In March, MDN created and offered (for free) a report on drilling permits by geography—it was downloaded 3,134 times.
- MDN links to source stories we cover (on other websites)—you collectively clicked to view those stories and visit those other websites 57,610 times.
- MDN’s daily email alert list started the year with a few hundred email addresses on it, and ended the year with 1,956 emails on it—you’re hardcore to read this stuff every day! (And I love you for it!!)
2011 In Review

Because it’s an interesting exercise—and because it’s about the easiest editorial “get” in the book—this week’s weekly update will showcase the top 10 most popular MDN stories from 2011, determined by the number of people who clicked to read the story. I’m also including the list of top 10 commented stories for 2011, determined by the number of comments—so you can see which stories generated the most discussion (and controversy).

There were a number of big stories this past year: New York State’s ongoing moratorium which has now dragged on for 3 1/2 years; Pennsylvania’s impending new drilling rules; West Virginia’s recently enacted new drilling rules; West Virginia’s all-out play for an ethane cracker plant; Morgantown’s fracking ban outside of its borders, which was struck down by a judge (and the subsequent safe fracking that took place). But perhaps the biggest story of 2011, in MDN’s humble opinion (and from analyzing the reading trends on the MDN site), was Chesapeake’s huge discovery of both oil and natural gas in eastern Ohio’s Utica Shale. The Utica Shale is quickly becoming as popular as the Marcellus, at least around the edges of the Marcellus play where the Utica is located and where it’s rich with “wet gas” and oil, in addition to methane. It seems MDN readers could not get enough stories about what’s happening in Ohio.

What’s Ahead for 2012

MDN is now accepting advertising, so you can expect to see more ads appearing on the site. Those ads will be relatively few in number, and all of them will be relevant for MDN readers. We strive to present you with not only the best in editorial, but also the best in advertising as well.

MDN editor Jim Willis will soon make announcements about exciting new developments for MDN—new features and new products coming in 2012.

In the year ahead, I hope to continue earning your trust and continue making MDN worthy of your most precious investment—your time. Your comments and suggestions for how to do that are always welcome. Just email me at: jim@marcellusdrilling.com.

The calendar of events for the next two weeks (sparse as it is) is also included below.

To Your Continued Success in 2012,
Jim Willis, Editor

Read More “MDN Weekly Update: 2011 in Review, Looking Ahead to 2012”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Binghamton Fracking Ban Will Stay; The Real Impact
December 23, 2011December 23, 2011

It now looks as though the fracking ban in Binghamton, NY will stay in place for the next two years. Binghamton City Council voted to pass the legislation Wednesday night (see MDN’s coverage here). Yesterday, Binghamton Mayor Matt Ryan signed the legislation into law. Interviews with several of the incoming new Council members, including Republicans, show there is no appetite to attempt a repeal of the new law.

Read More “Binghamton Fracking Ban Will Stay; The Real Impact”
Luzerne County | Pennsylvania

Anti-Drilling Protestors Want SRBC Meeting Do-Over
December 23, 2011December 23, 2011

Anti-drilling protestors, who often behave badly at public meetings by booing and shouting down those who attempt to speak in support of drilling, did just that at a recent meeting of the Susquehanna River Basin Commission held in Wilkes-Barre. Their temper tantrums caused the hearing to be rushed and ended early, and now they want a do-over.

Read More “Anti-Drilling Protestors Want SRBC Meeting Do-Over”
Allegheny County | Industrywide Issues | Pennsylvania | Regulation

Pittsburgh Councilman’s Last Attempt at Toxic Trespass Law
December 23, 2011December 23, 2011

In one last metaphorical flip of the middle finger to the Marcellus drilling industry, outgoing Pittsburgh City Councilman Doug Shields is trying to get his “toxic trespass” legislation adopted by City Council before Dec. 31.

Read More “Pittsburgh Councilman’s Last Attempt at Toxic Trespass Law”
Butler County | Lease & Royalty Payments | Pennsylvania

School District Near Pittsburgh Receives $628K Lease Payment
December 23, 2011December 23, 2011

The South Butler School District (Butler County, PA) has just finalized a lease agreement with XTO Energy to lease 167 acres of school-owned land for $628,000, or $3,760 per acre, plus an 18 percent royalty on any gas produced. The deal was approved by the school board back in September (see this MDN story).

The final terms of the deal just adopted have been changed since September. Previously, the district was promised $3,750 per acre that would be paid “should natural gas be extracted.” Under terms of the final agreement, the district has already received a $628,000 payment, $3,760 per acre, up front.

Read More “School District Near Pittsburgh Receives $628K Lease Payment”
Broome County | Energy Services | Industrywide Issues | Laser Northeast Gathering | New York | Pennsylvania | Pipelines | Susquehanna County | Williams

Laser Northeast Pipeline Selling to Williams for $750M
December 23, 2011December 23, 2011

Laser Northeast Gathering, a 33-mile natural gas pipeline that cost $55 million to build and stretches from the very active Marcellus Shale drilling area of Susquehanna County (in northeastern PA) to Broome County (in New York’s Southern Tier), connecting to the interstate Millennium Pipeline, announced yesterday the company is selling itself to Williams Partners for $750 million. The deal covers Laser’s contracts to expand the pipeline and commitments from customers already signed on. When the project is fully completed it will have 75 miles of pipeline. Laser is a subsidiary of Delphi Midstream Partners.

Read More “Laser Northeast Pipeline Selling to Williams for $750M”
Carroll County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Spectra Energy | Statewide OH | Utica Shale

Chesapeake Investing in New 70-Mile Ohio Pipeline
December 23, 2011December 23, 2011

Chesapeake Energy, American Electric Power and Spectra Energy are joining forces to build 70 miles of new pipeline in Ohio that will connect Utica and Marcellus gas wells in eastern Ohio to Spectra’s Texas Eastern pipeline system, which runs from Texas to New York. The new joint project is called the Ohio Pipeline Energy Network (OPEN). The estimated cost for the project is $500 million according to Spectra Energy.

Read More “Chesapeake Investing in New 70-Mile Ohio Pipeline”
Best of the Rest

Marcellus & Utica Shale Story Links: Friday, Dec 23, 2011
December 23, 2011

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: Friday, Dec 23, 2011”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Binghamton Bans Fracking; Serious Allegation by Councilman
December 22, 2011December 22, 2011

After a 3 1/2 hour public hearing and a short recess, Binghamton (NY) City Council last night convened in regular session to vote on several matters, including Local Law 11-7, a law “to effect a prohibition of natural gas and petroleum exploration and extraction activities, underground storage of natural gas, and disposal of natural gas or petroleum extraction, exploration and production wastes.” City Council members voted 6-1 in favor of the two-year ban on fracking, joining other cities around the state like Buffalo and Syracuse that have done the same.

A vote like this must be viewed in context. The Binghamton City Council has seven members, all of whom are Democrats. Just a little over a month ago in the fall election, all seven seats were up for election. Three of those seats were won by Republicans who will join City Council on January 1, 2012. Additionally, two of the sitting Democrat council members did not run for re-election and will be replaced by new Democrats. Bottom line, five of the seven Council members in 2012 will be new—four Democrats and three Republicans. This was legislation passed by a very lame-duck group of officials with an agenda.

Read More “Binghamton Bans Fracking; Serious Allegation by Councilman”
Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Binghamton Public Hearing on Proposed Fracking Ban
December 22, 2011December 22, 2011

Last night, to the frustration of some area residents, and to the glee of others, Binghamton City Council members made a loud political statement that the city is not interested in the natural gas drilling industry and the potential prosperity it would bring to the region. Council members voted 6-1 in favor of a two-year moratorium on drilling in the city. MDN attended the public hearing that preceded the vote, and stayed for the vote that followed. It was a long night.

The public hearing, which ran from 6:30 to 10:00 pm, heard from both residents and non-residents, each of whom was given three minutes to make a statement to Council members. MDN editor Jim Willis was among those commenting. By the time Council members had their say about why they would or would not support the ban, and then voted, it was close to 11:00 pm.

Read More “Binghamton Public Hearing on Proposed Fracking Ban”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY DEC Joe Martens – Another Week, Another Delay in Fracking
December 21, 2011December 21, 2011

New York Department of Environmental Conservation (DEC) Commissioner Joe Martens continues the delay and stall tactics he’s become known for on the issue of shale gas drilling in the state. The latest Martens delay came this week when he asked an outside consulting firm—Ecology & Environment—to take a closer look at costs fracking would create for local communities.

Read More “NY DEC Joe Martens – Another Week, Another Delay in Fracking”