Marcellus Drilling News

Chesapeake Energy | Coterra Energy (Cabot O&G) | Energy Companies | Goodrich Petroleum | New York | Range Resources Corp | Statewide NY

NY Attorney General Schneiderman Subpoenas Shale Drillers
August 19, 2011August 19, 2011

New York’s anti-drilling Attorney General, Eric T. Schneiderman, continues to target the shale gas industry. On May 31, he filed a lawsuit in federal court seeking to force the federal government to conduct a full environmental review of hydraulic fracturing before the Delaware River Basin Commission be allowed to permit drilling in its jurisdiction (see MDN’s story here). The federal government has since asked the judge in the case to toss out the lawsuit.

Now, based on a questionable article that appeared in the New York Times, written by anti-drilling author Ian Urbina (who used an intern as one of his main sources for the article), Schneiderman is using (misusing?) the considerable power of his office to target energy companies involved with shale gas drilling by sending them subpoenas for documents to “prove” their statements on shale gas reserves are accurate. The Times article claimed energy companies knowingly overstate the production of gas wells, understate how much it costs to get the gas, and intentionally inflate numbers for how much natural gas exists in shale formations.

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Hydraulic Fracturing | Industrywide Issues

Carnegie Mellon Refutes Cornell Study on Natural Gas vs Coal
August 18, 2011August 18, 2011

A new peer-reviewed study from Carnegie Mellon University says that Marcellus gas has less impact on global warming than coal. The study, published in the Institute of Physics Aug. 5th issue of “Environmental Research Letters” is a direct refutation of the Cornell study released in April by professors Robert Howarth and Anthony Ingraffea. The Cornell study was based on sketchy data (admitted to by Howarth & Ingraffea), and pure guesswork. It made the claim that shale gas was worse for global warming and the environment than burning coal.

The Carnegie study finds that burning natural gas is 20-50 percent cleaner than burning coal when producing electricity—a conclusion most people know instinctively. It’s only by doing extreme mental gymnastics that you can say burning gas is worse for the environment than burning coal.

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Commodity Price | Hydraulic Fracturing | Industrywide Issues

Fracking Creates an Oil Boom – Now More Oil than Gas Rigs
August 18, 2011August 18, 2011

Turns out that horizontal hydraulic fracturing, the process used to get natural gas from shale layers, is also a renaissance for oil production as well. According to the latest figures, the number of rigs drilling for oil in the U.S. has just surpassed the number of rigs drilling for natural gas—for the first time in 18 years—thanks to fracking.

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Hydraulic Fracturing | Industrywide Issues | New York | Public Opinion | Statewide NY

Marist Releases Dubious NY Opinion Poll on Fracking
August 18, 2011August 18, 2011

Yet another opinion poll of New York State residents on the issue of drilling for natural gas in the Marcellus (and Utica) Shale. This is the third statewide poll in a month. Like the two polls before it, this one found those those who support drilling, and those who oppose it, are just about evenly split. This most recent poll was done by Marist College and of the three polls, the questions in this one are the most flawed. It’s more like a push-poll—a poll that seeks to push a political message—rather than a poll which seeks to understand public opinion. The exact wording of the four questions asked are listed below, along with MDN commentary. The entire detailed breakout of how various groups responded to each question is embedded at the bottom.

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Energy Services | Industrywide Issues | Pipelines | Tennessee Gas Pipeline

NJ Residents Unhappy with Pipeline’s Power of Eminent Domain
August 18, 2011August 18, 2011

This is a cautionary story. You know that MDN is pro- but safe drilling. You may also know that MDN does not think, in general, that pipeline companies should be granted status as public utilities with the right of eminent domain—the right to condemn and take land for its own use in constructing a pipeline. But pipelines are a complex issue. Should large, interstate pipelines be granted public utility status? Perhaps. They are similar to large electric lines running through a state. But what about smaller, gathering pipelines? Should they have the right to cross any property they want? MDN says no.

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Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

New Marcellus Drilling Rules for WV Delayed Until 2012
August 18, 2011August 18, 2011

It now looks like West Virginia lawmakers will not adopt new regulations for drilling in the Marcellus Shale this year. In July, acting Gov. Earl Ray Tomblin signed an executive order creating “temporary” new Marcellus Shale drilling regulations, which have not yet gone into effect (see this MDN story). The new regs are intended to be in place for up to 15 months to give the legislature time to draft a comprehensive overhaul of drilling rules. There was talk of speeding the process along and taking advantage of the current special session of the legislature, meeting this week to rework a redistricting plan, to tackle the drilling issue. But any more work on new drilling regulations for this year is now all but dead:

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Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

The Mighty Marcellus Roars in PA – Production Up 55% in 6 Months
August 17, 2011August 17, 2011

Now we know why it’s called “The Mighty Marcellus.” New production figures for the first six months of 2011 show that on all counts—natural gas, gas liquids, and even oil—the Marcellus Shale in Pennsylvania is producing a tremendous amount of new energy. Figures for the southwestern part of PA show a 55 percent increase in production over the previous six month period.

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Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Public Opinion | Rex Energy

Community Supports 11 New Marcellus Wells in Butler County
August 17, 2011August 17, 2011

Contrary to media reports which make it appear that an overwhelming majority of people oppose Marcellus drilling, not “everyone” is opposed. Case in point: Local citizens in Lancaster Township (Butler County), PA turned out to support drilling in their community in two separate meetings:

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Allegheny County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation

Range Resources Fights PA Town Ordinance, Threatens Lawsuit
August 17, 2011August 17, 2011

Range Resources, one of the largest Marcellus Shale drillers in Pennsylvania, and the first to sink a Marcellus well in the state in 2003, is pushing back against what it calls “death by a thousand paper cuts” – townships imposing their own regulations on drilling that result in a de facto ban on drilling. Range has just filed an appeal with the zoning hearing board in South Fayette (Allegheny County), PA challenging the township’s zoning regulations prohibiting drilling. Range says if the hearing board does not reverse course, it will take the township to court. A copy of Range’s 35-page challenge filed with the hearing board is embedded below.

UPDATE: Also embedded below is a full copy of the drilling ordinance passed by South Fayette Township in 2010. Thank you to MDN reader Josh Whetzel for suggesting we include it with this article.

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Industrialization | Industrywide Issues | Lancaster County | Pennsylvania

Shale Gas Drillers Spread STDs Says PA Democrat Legislator
August 17, 2011August 17, 2011

You know you’re winning the battle when the other side stoops to this… PA Rep. Mike Sturla (Democrat, Lancaster County) wrote the following in an email to Capitolwire:

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Economic Impact | Industrywide Issues | Pipelines

New Marcellus Pipeline Construction Pumping $2B into Economy
August 17, 2011August 17, 2011

New pipeline construction for Marcellus Shale gas is set to have a major economic impact on the Marcellus region—to the tune of $2 billion. The new capacity in Marcellus pipelines will more than double the existing capacity in place now:

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Accidents | Industrywide Issues | New York | Regulation | Statewide NY

NY Comptroller DiNapoli Editorial Defends Drilling Tax
August 16, 2011August 16, 2011

Last week, New York State Comptroller Thomas P. DiNapoli made a pitch for taxing the gas drilling industry in New York to create a pool of money that can be used to clean up accidents that may occur. As MDN pointed out (see MDN story here), any pool of money that sits in Albany doesn’t last long and will certainly be reallocated for other unintended uses. In addition, wouldn’t you make the company who caused the accident pay to clean it up? Why ~~extort~~ extract money ahead of time from all drillers, even from those who will never experience an accident, for an accident fund? Why? Because politicians love money, that’s why.

Apparently DiNapoli is feeling push-back against his brilliant proposal, and has found it necessary to write an editorial, sent to multiple news outlets across the state, to defend the indefensible: yet another new tax. Here is DiNapoli’s editorial, in full:

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Energy Companies | Pennsylvania | Statewide PA | Ultra Petroleum

Ultra Petroleum Marcellus Production in PA Jumps 321%
August 16, 2011August 16, 2011

Ultra Petroleum, an independent energy company headquartered in Houston, TX, reports a major ramp-up in Marcellus Shale gas drilling and production for the second quarter of 2011. Ultra says their Marcellus net production increased 321 percent over the second quarter of 2010. Since Ultra started drilling in the Marcellus Shale in 2009, they have drilled 235 gas wells in Pennsylvania’s Marcellus Shale. All of Ultra’s Marcellus drilling (so far) has been in PA.

Ultra’s PA Marcellus operational update (from their quarterly report):

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Chesapeake Energy | Economic Impact | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Ohio County | West Virginia

Ohio County Receives $8M (So Far) from Marcellus Gas Leases
August 16, 2011August 16, 2011

Ohio County, WV is reaping the rewards of leasing county-owned land for Marcellus gas drilling. The county’s land leases with Chesapeake Energy have already resulted in nearly $8 million in one-time lease payments for the county coffers, and soon will mean royalty payments too. Chesapeake has already completed a well on private land adjacent to (and drilling under) county land in The Highlands area. But gas from that well has not yet started to flow due to a delay in getting a pipeline built to the well. Once the pipeline is in place, the county will start receiving royalty checks from that well.

And within the next 12 months, Chesapeake will drill a new well, this time directly on county-owned land at the airport:

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

Common Cause/NY Says Delay Gas Drilling Another 6 Months
August 16, 2011August 16, 2011

Common Cause/NY, a far-left organization, is the latest anti-drilling group desperately seeking a way to stop Marcellus and Utica drilling in New York State. Their tactic? Turn the already-generous 60-day public comment period (that hasn’t even started yet!) on proposed new drilling rules into 180 days—that is, let’s stretch out the comment period from two months to six months to give everyone who opposes drilling a chance to bleat and moan before local news cameras for the next six months on the off chance we can turn a few more people against this thing and finally kill it. That’s the so-called “non-partisan” approach of Common Cause.

From their press release:

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Monongalia County | Northeast Natural Energy | Regulation | West Virginia

Morgantown Official Backpedals After Drilling Ban Overturned
August 16, 2011August 16, 2011

It’s always interesting to watch politicians operate after a humiliating defeat. Politicians’ DNA does not allow them to simply look inward and recognize their own errors. They always look outward and blame others, or in some cases, declare the defeat was a good thing and accomplished just what they wanted all along! I refer to the situation in Morgantown, WV. In June, Morgantown City Council members voted to ban hydraulic fracturing both inside and up to one mile outside their borders (see this MDN story). This threatened a pair of Marcellus Shale wells being drilled about a mile from city lines. The result? The driller, Northeast Energy, sued the city. Last week a judge overturned the city’s ban and now hydraulic fracturing will commence (see this MDN story). All told, Northeast probably lost about a month out of their original drilling schedule (they continued drilling anyway, the ban specifically prohibited fracking and not drilling per se).

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