Marcellus Drilling News

Industrywide Issues | Pipelines

Mariner East Ethane Pipeline/Shipping Combo Still Alive
November 21, 2011November 21, 2011

There’s more than one way to get ethane to a cracker plant. MDN has chronicled the debate over whether pipelines to other regions like the Gulf Coast or Canada, or locally built ethane cracker (processing) plants, or a mix of the two, should be used to process the ethane-rich “wet gas” from the Marcellus and Utica Shales. Four ethane pipeline projects and at least one locally built ethane cracker plant have been promoted by various companies. Two of the four pipelines are “solid” and moving forward. The other two, according to one analyst, are in doubt (see this MDN story).

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Belmont County | Energy Companies | Exxon Mobil | Ohio | XTO

Exxon Pays for After Hours Access to OH Property Records
November 21, 2011November 21, 2011

Interest from drilling companies in Eastern Ohio continues to be red hot with respect to the Marcellus and Utica Shales, as proven by how local county offices are overrun with researchers wanting access to property deed records. One such place is the Belmont County Recorder’s office in Belmont, Ohio. One company, Permian Oil (acting as an agent for XTO Energy, a subsidiary of Exxon Mobil) has gone so far as to pay for after hours access.

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Best of the Rest

Marcellus & Utica Shale Story Links: Monday, Nov 21, 2011
November 21, 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 20, 2011: Catching Up
November 20, 2011November 20, 2011

A very brief weekly update. MDN editor Jim Willis was traveling most of this past week (making a living with my day job), hence lack of daily updates from Wednesday to Friday. A lot can happen in just a few days! The New York Department of Environmental Conservation (DEC) held two of four public hearings supposedly on the newest revisions to the draft drilling regulations (Wednesday in Dansville, Thursday in Binghamton)—sessions which devolved into either “drill here drill now” or “ban drilling altogether” arguments as reported by the media. Sorry to miss those hearings!

And on Friday, the Delaware River Basin Commission decided to postpone a vote tomorrow (Monday, Nov. 21) on whether to finally release new drilling rules for land inside of the DRBC’s jurisdiction. Looks like the antis have scored at least a temporary victory.

I’ve posted stories on both of the above items today, plus another hot topic: An update on the situation in Pennsylvania on whether or not local municipalities will have an ongoing role to play in zoning and other laws to restrict gas drilling in their borders.

Continue to vote in the poll for another week, and refer to the rather light calendar of events below for the next two weeks. Seems meetings are light due to the Thanksgiving holiday here in the U.S. later this week.

Be sure to spend time with your family and friends on Thursday, and forget about the politics of drilling for a day!

Happy Thanksgiving,
Jim Willis, Editor

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Hydraulic Fracturing | Industrywide Issues | Regulation

DRBC Postpones Vote to Finally Allow Safe Gas Drilling
November 20, 2011November 20, 2011

The five voting members of the Delaware River Basin Commission (DRBC) have decided to postpone a vote scheduled for Monday to finally, after a years-long delay, allow some (a teeny, tiny bit) of gas drilling to proceed in the DRBC’s jurisdictional area. It seems environmental groups have convinced both Delaware and New York to vote against the new drilling regulations—regulations that have been vetted repeatedly in public forums, with public comments, reworking, refining and with multiple delays. And because two of the four states who belong to the DRBC are voting no, at least one other state (NJ) wants to wait.

Obviously anti-drilling forces want no drilling. They are not interested in safe drilling—a total and permanent ban on drilling is their goal, and the DRBC is the place they want to start with it. A permanent ban in the DRBC is the antis’ “stake in the ground.”

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Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Binghamton DEC Hearing Draws Big & Loud Crowd
November 20, 2011November 20, 2011

Unfortunately MDN editor Jim Willis was not in Binghamton for the Nov. 17 DEC hearing on the newest revisions to the draft drilling regulations that would finally allow shale gas drilling in the state. However, there was plenty of media coverage of the event, which drew more than 1,000 people to the Forum Theatre in downtown Binghamton.

The Nov. 17 hearing was the second of four scheduled public hearings on the new regulations. The final two will be at the end of November, one in Loch Sheldrake (Sullivan County) and one in New York City.

Reporting on the Binghamton hearing from the hometown Press & Sun-Bulletin:

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Compromise Allows PA Municipalities Some Drilling Oversight
November 20, 2011November 20, 2011

As MDN recently pointed out, in Pennsylvania there is an ongoing tug-of-war between the state and local municipalities over how much local governments can regulate activities like zoning that impact shale gas drilling (see this MDN story). Local governments want the ability to allow or disallow drilling in certain areas. The state says that statewide laws should totally “preempt” local laws to ensure fairness and consistency and to avoid litigation by drilling companies which will cause millions in taxpayer money to defend.

There is a compromise coming in new legislation that will continue to allow local municipalities some control over drilling in their locales, while preserving most of the oversight for the state. It’s not a perfect solution, but both sides of the debate are signaling it may be the best solution they can jointly agree on.

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Landowner Coalition News | Lease & Royalty Payments | Ohio | Trumbull County

Huge OH Landowner Group Close to a Lease Deal for 80K Acres
November 20, 2011November 20, 2011

The Associated Landowners of the Ohio Valley (ALOV) landowner group in eastern Ohio met on Saturday for an update on negotiations with energy companies to lease what may be the largest tract of land offered by a single landowner group in the entire Marcellus and Utica Shale plays. A deal is not yet done, but the president of ALOV, Robert Rea, says they may well have a deal done in the next several weeks.

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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Regulating Drilling in PA Pits State Against Municipalities
November 15, 2011November 15, 2011

There is a “tug of war” going on in Pennsylvania for who will ultimately control where, and under what conditions, Marcellus Shale gas wells can be drilled. The struggle pits the state against local municipalities. As with many issues surrounding shale gas drilling, this one is complicated.

Pennsylvania has more than 2,500 township and municipal governments across the state—more than any other state—even though there are four other states with larger populations (CA, TX, NY, and FL). Local governments are responsive to the people in their communities.

But when it comes to the issue of drilling, local governments, in being “responsive” are often trampling the rights of local property owners to use their land as they see fit. Local municipalities will say they regulate where malls and shopping centers can be built, where factories can be built, and whether or not land in residential areas can be re-zoned for other purposes, on a case by case basis. Why not the industrial process of constructing a gas well? And they ask the state, “Would you like it if the federal government stripped away your rights to self government? Why do you want to take away ours?”

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Energy Companies | Forest County | Industrywide Issues | Litigation | McKean County | Minard Run Oil | Pennsylvania | Warren County

Drillers Sue US Govt over Allegheny National Forest Delays
November 15, 2011November 30, 2022

According to a lawsuit filed on Monday, the U.S. government is obstructing legitimate and legal gas drilling in the Allegheny National Forest (ANF) in northwestern PA. A court in Erie, PA has been asked to find them in contempt and force them to allow drilling to proceed on a timely basis.

A brief background on the ANF and why the lawsuit was filed:

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Allegheny County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Pittsburgh Councilman Introduces “Toxic Trespass” Legislation
November 15, 2011November 15, 2011

Pittsburgh City Councilman Doug Shields has been a tireless anti-drilling crusader (see previous MDN stories here). Fortunately, he leaves office at the end of December—he didn’t run for re-election. But before he goes, he wants to take one parting shot at the drilling industry.

Yesterday, Mr. Shields introduced “toxic trespass” legislation, which is designed to try and stop drilling in other locations by inferring they may release chemicals into the environment that will find their way to Pittsburgh via rivers and streams and therefore Pittsburgh will sue them out of existence if they get even a whiff of something they don’t like. Nice way to go out Doug…

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Best of the Rest

Marcellus & Utica Shale Story Links: Tuesday, Nov 15, 2011
November 15, 2011

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

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Broome County | Hydraulic Fracturing | Industrywide Issues | Meetings | New York | Public Opinion | Regulation

Binghamton DEC Hearing will be Ground Zero This Week
November 14, 2011November 14, 2011

This week will be important for the effort to get shale gas drilling moving in New York State. The state Department of Environmental Conservation (DEC) is conducting a series of four public hearings nominally to accept comments on the most recent changes to the draft drilling regulations, also known as the SGEIS (Supplemental Generic Environmental Impact Statement). MDN says “nominally” because each of the four events will be used by both those for and against drilling to try and show their side has the most support.

One of the four hearings, in Binghamton on Thursday of this week, is likely to be the largest hearing outside of the New York City hearing later this month. MDN has received several email notices from landowner groups in favor of drilling, and from one group opposed. Both say similar things: These hearings are vitally important.

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

Will NY be Too Expensive to Drill in the Marcellus?
November 14, 2011November 14, 2011

Yesterday’s Buffalo News has an excellent analysis for the prospects of shale gas drilling in New York, given New York’s extreme delays and proposed restrictive drilling regulations. MDN is a supporter of drilling in New York and has nothing but best wishes for landowners in our home state. But the stark reality, as we’ve been pointing out, is that “if you build it, they will come” makes for a nice movie, but doesn’t necessarily translate into reality for drilling in NY.

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Accidents | Industrywide Issues | Pennsylvania | Regulation | Susquehanna County

Feds Make a Visit to Dimock PA Families Last Week
November 14, 2011November 14, 2011

The federal Environmental Protection Agency and the Agency for Toxic Substances and Disease Registry visited some of the families in Dimock, PA affected by methane migration last Thursday. The were particularly interested in getting copies of water sample results from entities other than the Pennsylvania Department of Environmental Protection or Cabot Oil & Gas.

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Exporting | Industrywide Issues

Five Applications Filed with DOE to Export Natural Gas
November 14, 2011November 14, 2011

An issue that will be debated in coming months (and years) is whether or not to export some of the natural gas that America has in abundance now that the miracle of hydraulic fracturing has released it from shale formations. Some say it will help the U.S. achieve a better trade balance with other countries once again. Others say exporting will keep prices for natural gas higher than they otherwise would be for consumers.

The Department of Energy (DOE) has so far received five applications from companies that want to create terminals to export liquefied natural gas (LNG) to overseas markets—one of them has been approved. Just six years ago the natural gas industry was doing all it could to import LNG from foreign countries.

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