Marcellus & Utica Shale Story Links: Mon, Mar 12, 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, Mar 12, 2012”
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MDN Weekly Update – Mar 11, 2012: Taxed to Death
This past week brought the news that Ohio Gov. John Kasich will this week unveil a plan to assess a new tax on shale gas drilling (see this MDN story). Unlike Pennsylvania’s recently passed tax (oops, impact fee) where 60 percent stays in the local community to offset the effects of where drilling actually happens and “only” 40 percent goes to Harrisburg for politicians to play with, it appears that 100 percent of this new Ohio tax will go to the general revenue fund so that Kasich can give all residents an Ohio state income tax cut.MDN has been accused of having Tea Party views when it comes to taxes. Guilty as charged. As we pointed out in a second story this week, the Ohio Oil and Gas Association also agrees with MDN’s view that the proposed new tax essentially “spreads the wealth” unfairly from those who own the resource (landowners) and those who work hard to produce it (drillers) to those who have had nothing to do with it. But, it seems, such is the world we’ve come to live in. What’s yours is mine and if you don’t like it, well, we’ll elect people who will forcibly take it from you and give it to me! Welcome to Ameritopia where we’re born free and then taxed to death.
But MDN wonders, is this the price we must pay to develop this natural resource? Do we have to “buy off” the population at large? Would such a strategy work in New York too? If you take a certain percentage of the proceeds from drilling and just hand it out, as Alaska does with oil tax money to its citizens—would that change public opinion toward shale oil and gas drilling? The sad truth is, it might well.
So this week we ask you the question, what do you think? Is it OK to tax shale drilling and share the proceeds with everyone via a personal income tax cut? It will be interesting to see what MDN readers think.
Last Week’s Poll Results
Last week MDN asked a question to find out if you personally know people in the shale drilling industry—or if you work in the industry yourself. By a hefty 3 to 2 margin the answer is “yes” you do personally know people working in the industry.Do you or someone you know (family member, friend, acquaintance) work in the shale gas industry?
Yes (64%, 138 Votes)
No (36%, 77 Votes)Total Voters: 215
Below are the most recent “top 5” lists and the calendar of Marcellus-related events for the next two weeks.
Happy “spring forward”,
Jim Willis, EditorRead More “MDN Weekly Update – Mar 11, 2012: Taxed to Death”
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Details on Ohio Gov. Kasich’s New Tax on Shale Drilling
Details of Gov. John Kasich’s plan to raise taxes on the nascent shale drilling industry in Ohio (see this MDN story) are starting to leak out. Gov. Kasich plans to unveil his plans officially next week, but here’s what we know so far:Read More “Details on Ohio Gov. Kasich’s New Tax on Shale Drilling”
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Cayuga County | Hydraulic Fracturing | Industrywide Issues | New York | Public Opinion | Regulation | Wastewater
Auburn, NY Rescinds Ban on Gas Drilling Wastewater
Wiser heads have prevailed in the upstate New York Finger Lakes community of Auburn—the Auburn city council has voted to once again allow the municipal sewage treatment plant to accept gas drilling wastewater.
As you may recall, MDN told you about protesters who descended on the tiny city of Auburn last year to protest not Marcellus wastewater being treated at the sewage plant, but local conventional gas drilling wastewater—something that had been going on for 15 years with no adverse effects (see this MDN story). In the rush to condemn fracking and prevent horizontal drilling in the state, ignorant protesters have fallen into the trap of protesting all gas drilling in the state—drilling that has gone on for decades.
Read More “Auburn, NY Rescinds Ban on Gas Drilling Wastewater”
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Sustainable Investments Institute Issues Report on Fracking
The Sustainable Investments Institute (Si2) and the IRRC Institute yesterday released a new report titled “Discovering Shale Gas: An Investor Guide to Hydraulic Fracturing” (a copy of the 74-page report is embedded below). The report provides an in-depth look at the environmental and social impacts of shale gas development, identifies key questions for investors and includes 10 drilling company profiles. An expert panel representing industry, environmental groups and investor activists provided input to the report.
Read More “Sustainable Investments Institute Issues Report on Fracking”
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NY Republican Senator Introduces Fracking Wastewater Bill
On the issue of hydraulic fracturing and shale gas drilling, the New York Republican party keeps shooting itself in the head. The latest example is a ridiculous bill just introduced into the state legislature by Long Island Republican Senator Jack Martins, 7th Senate District:
Read More “NY Republican Senator Introduces Fracking Wastewater Bill”
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Gastar’s Marcellus Production has Huge Increase in Q411
Gastar Exploration released fourth quarter 2011 results yesterday. The fourth quarter was very good for Gastar in the Marcellus, with a 1700 percent increase in average daily gas production from fourth quarter 2010, and a 179 percent increase from just the previous (third) quarter 2011. As is typical of other companies, Gastar is dedicating $88.9 million of a planned $103 million Marcellus budget (86 percent) for drilling in the liquids-rich area of the Marcellus.
Here’s the Marcellus play update from the Gastar press release:
Read More “Gastar’s Marcellus Production has Huge Increase in Q411”
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Exxon, GE Donate $1M Each for Shale Best Practices Training
Exxon Mobil and General Electric announced yesterday that each company is investing $1 million to help fund training in shale development best practices at three universities, including PennState.
Read More “Exxon, GE Donate $1M Each for Shale Best Practices Training”
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OH Bill Tightens Regulation of Wastewater Injection Wells
Ohio State Rep. Jay Goyal introduced legislation yesterday to tighten regulation of injection wells used for disposing Marcellus and Utica Shale wastewater. Key provisions of the bill include:
Read More “OH Bill Tightens Regulation of Wastewater Injection Wells”
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Marcellus & Utica Shale Story Links: Fri, Mar 9, 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, Mar 9, 2012”
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DRBC Update: When Will New Rules Come to a Vote?
Large areas of the Marcellus Shale play not only have state oversight and regulation of drilling, but also oversight from two quasi-governmental organizations: the Susquehanna River Basin Commission (SRBC) and the Delaware River Basin Commission (DRBC). Wells drilled in an area covered by the SRBC must go through an approval process with the SRBC first. The SRBC gets to oversee major industrial activities (not just gas drilling) anywhere in the region of tributaries—creeks and rivers—that flow into the Susquehanna River that starts near Cooperstown and flows all the way to the Chesapeake Bay in Maryland.The SRBC meets regularly, considers requests for drilling and water withdrawals from rivers and streams, and acts on those requests in a timely manner. Not so with the DRBC.
Read More “DRBC Update: When Will New Rules Come to a Vote?”
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Belmont County | Energy Companies | Hess | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Utica Shale
Belmont County, OH Landowner Sues Hess Over $100/Acre Lease
Rebecca Bench, a landowner in Belmont County, Ohio is representing herself in a lawsuit she has brought against Hess. The lawsuit alleges that Mason Dixon Energy, whom she signed a lease with (that lease was eventually purchased by Hess) had no legal standing to conduct business in Ohio at the time they convinced Rebecca and her husband Kevin Bench to sign a lease in 2008 for $100 per acre. By comparison, recent lease agreements for Utica Shale leases in the county have gone as high as $5,200 per acre.
Read More “Belmont County, OH Landowner Sues Hess Over $100/Acre Lease”
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Prolonged Well Flaring in Nicholas County, WV to End May 31
Three gas wells drilled in Nicholas County, WV last year began flaring gas, or burning it at the wellhead, on August 28, 2011. They’re still flaring and those who live close enough to see the orange glow at night have had enough. WV state law limits gas flaring to 30 days per year for each well, but the driller, Bluescape Resources Co. (BRC), says with no pipelines in the area it has been necessary to continue the flaring. They also say the state Department of Environmental Protection (DEP) knew about their flaring plans and told BRC no special permits would be needed for extended flaring. The DEP has given BRC until May 31st to end the flaring. The DEP has also assessed a $50,000 fine.
Read More “Prolonged Well Flaring in Nicholas County, WV to End May 31”
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Traders Skeptical that Chesapeake, Others Cut Gas Production
The commodity price of natural gas continues to hover near it’s 10-year low. That’s great news for consumers whose heating bills are lower, but not-so-great news for landowners with leases in the Marcellus Shale. Why? Because low prices mean it’s not profitable for drillers to go after shale gas. They are in it to make money, and if you lose money in mining natural gas, well, you stop doing it. And that’s what is happening in many Marcellus areas. Drilling hasn’t stopped—but it has slowed down.
Read More “Traders Skeptical that Chesapeake, Others Cut Gas Production”
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Marcellus & Utica Shale Story Links: Thu, Mar 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: Thu, Mar 8, 2012”
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New Website Connects Businesses to Marcellus Drilling Industry
Here’s a great idea: Why not start a website where companies already involved in the Marcellus drilling industry, and those companies who want to work with them, service them, do business with them, can also be listed, so they can “connect.” Sort of Facebook or LinkedIn for Marcellus-related businesses. The Marcellus Shale coalition has done just that! The new website they’ve created to connect businesses interested in the Marcellus is called Marcellus on Main Street and is located at: www.MarcellusOnMainStreet.org. The website just launched yesterday, so it’s not full of listings yet. It does contain Marcellus Shale Coalition member firms, which is a great start. If you work at or own a business and want to list it on the site,
the listing is free. (Sorry! I was wrong, the listing is not free but $25.) Your business may be trucking, or haircutting—it makes no difference. If you want to provide a service or sell something to the drilling industry, get your business listed in this new directory.Read More “New Website Connects Businesses to Marcellus Drilling Industry”
This past week brought the news that Ohio Gov. John Kasich will this week unveil a plan to assess a new tax on shale gas drilling (
Last week MDN asked a question to find out if you personally know people in the shale drilling industry—or if you work in the industry yourself. By a hefty 3 to 2 margin the answer is “yes” you do personally know people working in the industry.
Details of Gov. John Kasich’s plan to raise taxes on the nascent shale drilling industry in Ohio (
Here’s a great idea: Why not start a website where companies already involved in the Marcellus drilling industry, and those companies who want to work with them, service them, do business with them, can also be listed, so they can “connect.” Sort of Facebook or LinkedIn for Marcellus-related businesses. The Marcellus Shale coalition has done just that! The new website they’ve created to connect businesses interested in the Marcellus is called Marcellus on Main Street and is located at: