Marcellus Drilling News

Delaware County | Hydraulic Fracturing | Industrywide Issues | New York | Regulation

Delaware County Asks NY State for $81.3B in Reparations
March 12, 2012March 12, 2012

Paying $9 billion to build a new water filtration plant for New York City may look like a bargain compared to paying New York landowners the value of their mineral rights from shale gas drilling. That’s the point being made by the Delaware County Board of Supervisors with a recent resolution they passed in a 12-4 vote at their February meeting.

Delaware County Resolution No. 40 (copy embedded below) demands that New York State and New York City pay Delaware County landowners $81.3 billion in reparations over 60 years because the proposed new regulations drafted by the Department of Environmental Conservation (DEC) will effectively prohibit 80 percent of land in Delaware County from being drilled due to enormous setback provisions from the New York City watershed.

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Dominion Exploration | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Westmoreland County

Water Tests at PA Reservoir Show No Affects from Gas Drilling
March 12, 2012March 12, 2012

In March 2009, the Westmoreland (PA) County Board of Supervisors voted to lease Municipal Authority property near the Beaver Run Reservoir for shale gas drilling to Dominion Resources. The original plan was to drill five wells (see this MDN story). Two years later, there are 13 working wells on the property with plans for another 14 wells. More importantly, testing done of the water in the reservoir and streams that flow into it show (gasp), there’s been no affect on the water from Marcellus drilling.

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Chevron | Energy Companies | Exxon Mobil

Full Speed Ahead in the Marcellus for Chevron & Exxon Mobil
March 12, 2012March 12, 2012

Not every driller is pulling back from drilling natural gas to focus on oil and gas liquids. In fact, for two of the largest energy companies in the U.S., it’s full speed ahead with drilling in the Marcellus. Those two companies? Chevron and Exxon Mobil. Chevron is planning to double its drilling in the Marcellus in the near term.

From a recent story in the Wall Street Journal:

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Chesapeake Energy | Energy Companies

Chesapeake CEO Goes Shopping for New Investors in Asia
March 12, 2012March 12, 2012

Chesapeake Energy’s CEO Aubrey McClendon went on a 14-day Asian trip last month looking for new investors for his company.

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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Mar 12, 2012
March 12, 2012March 12, 2012

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 – Mar 11, 2012: Taxed to Death
March 11, 2012March 11, 2012

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, Editor

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Industrywide Issues | Ohio | Statewide OH | Taxation

Details on Ohio Gov. Kasich’s New Tax on Shale Drilling
March 9, 2012March 9, 2012

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:

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Cayuga County | Hydraulic Fracturing | Industrywide Issues | New York | Public Opinion | Regulation | Wastewater

Auburn, NY Rescinds Ban on Gas Drilling Wastewater
March 9, 2012March 9, 2012

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.

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Hydraulic Fracturing | Industrywide Issues

Sustainable Investments Institute Issues Report on Fracking
March 9, 2012March 9, 2012

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.

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

NY Republican Senator Introduces Fracking Wastewater Bill
March 9, 2012March 9, 2012

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:

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Energy Companies | Gastar Exploration

Gastar’s Marcellus Production has Huge Increase in Q411
March 9, 2012March 9, 2012

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:

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Education | Energy Companies | Exxon Mobil | Industrywide Issues | Pennsylvania | Statewide PA

Exxon, GE Donate $1M Each for Shale Best Practices Training
March 9, 2012March 9, 2012

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.

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Industrywide Issues | Ohio | Regulation | Statewide OH | Wastewater

OH Bill Tightens Regulation of Wastewater Injection Wells
March 9, 2012March 9, 2012

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:

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Mar 9, 2012
March 9, 2012March 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”
Hydraulic Fracturing | Industrywide Issues | Regulation

DRBC Update: When Will New Rules Come to a Vote?
March 8, 2012March 8, 2012

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.

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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
March 8, 2012March 8, 2012

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”