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  • MDN Weekly Update

    MDN Weekly Update – May 29, 2011

    May 29, 2011May 29, 2011

    poll resultsThank you to those who voted in last week’s online poll. Here are the results:

    Should Marcellus Shale pipeline companies be granted public utility status (i.e. eminent domain)?

    No (74%, 151 Votes)
    Yes (23%, 47 Votes)
    Not sure (3%, 6 Votes)

    Total Voters: 204

    This Week’s Poll

    This week I wade into waters few dare to go: the global warming (or climate change or whatever you want to call it) debate. I do so because of the interest in the story I posted this past week about the Cornell study recently published by Profs. Howarth, Ingraffea and Santoro. That study says, among other things, that using shale gas—not only burning it, but also the process of drilling it and transporting it—is a bigger contributor to greenhouse gases in the atmosphere than mining and burning coal. A writer on the Council on Foreign Relations website pointed out new findings from the Department of Energy that refutes the methodology and resulting conclusions from the Howarth study.

    Many who oppose drilling for Marcellus Shale gas do so because of their philosophical viewpoint, a viewpoint that believes (oversimplification here) that burning fossil fuels are bad because they cause an increase in greenhouse gases in the atmosphere resulting in an increase in the average temperature on the earth with potentially catastrophic effects. That line of thinking or viewpoint is represented in the work by Howarth et al. Those who hold that viewpoint generally support alternative sources of energy like wind and solar and believe that humans should, more or less, be forced to change to those sources of energy.

    There are others, MDN among them, who do not believe man is contributing in any meaningful way to an increase in global warming—at least not to the extent that it endangers anyone or anything on planet earth. Can and does air pollution exist? Of course. Do carbon-based fuels contribute to said pollution? Yes. But is mankind’s burning of carbon-based fossil fuels leading to doomsday for life on earth because of greenhouse gases? No. Not in my opinion. And not in the opinion of many scientists and experts.

    Maybe you think man does contribute to the “problem” of global warming, but man’s contribution is not dangerous. Maybe you think all fossil fuel use should end asap. Maybe you think using natural gas, because of lower carbon emissions than oil and coal is the best solution for now, but not for the long-term. People come down on all sides of the debate. I’ve tried to word the poll this week to get at the root philosophy or belief that may or may not lead people to support or oppose drilling. It’s not a perfect question, but hopefully will do the trick.

    Do you think burning fossil fuels like natural gas causes dangerously high levels of global warming?

    If you believe there is a direct connection between burning fossil fuels and dangerously high global warming, my guess is that you oppose drilling for shale gas. You may have other reasons to oppose drilling (impact on water supplies, etc.). But fundamentally, if you believe the planet is endangered by carbon, my guess is you don’t want drilling. Am I right?

    Go to any page on the website and click to vote on the right-hand side of the page in this week’s poll. I’ll report the results next week.

    Below you’ll find the “top 5” lists and this week’s calendar listings.

    Happy reading,
    Jim Willis, Editor

    Read More “MDN Weekly Update – May 29, 2011”

  • Atlas Energy | Chesapeake Energy | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Statewide PA | SWEPI | Talisman Energy | Wastewater

    PA Drillers Comply with Federal EPA’s Request for Information on Wastewater Disposal

    May 27, 2011May 27, 2011

    When the Pennsylvania Department of Environmental Protection (DEP) recently told Marcellus Shale drillers in the state to stop hauling wastewater from fracking to municipal sewage treatment plants that are not equipped to fully treat the wastewater by May 19 (see MDN story here), they all committed to comply and indeed did comply. But the federal Environmental Protection Agency (EPA) jumped in and demanded detailed plans from six drillers as to just how they planned on treating and disposing of the wastewater once the they stopped using the municipal plants.

    The EPA’s deadline for the six drillers to file plans was Wednesday, May 25. Five of the six complied by the deadline:

    Read More “PA Drillers Comply with Federal EPA’s Request for Information on Wastewater Disposal”

  • Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

    Wilkes Marcellus Shale Drilling Forum Brings to Light Just How Many Active Gas Wells There are in PA

    May 27, 2011May 27, 2011

    Wilkes University held a Marcellus Shale drilling forum on Wednesday. According to press reports, the upshot of the meeting was that it will not be impossible, but will certainly be difficult, to get a consensus on natural gas drilling that uses horizontal hydraulic fracturing. Read an excellent roundup of the meeting by clicking the link below.

    One bit of information offered during the meeting is interesting to note:

    Read More “Wilkes Marcellus Shale Drilling Forum Brings to Light Just How Many Active Gas Wells There are in PA”

  • Dominion Energy | Energy Services | Industrywide Issues | Litigation | Preston County | West Virginia

    Dominion Transmission Sued in WV Over 56 Year-Old Lease – Landowners Want Marcellus Drilling to Begin

    May 27, 2011May 27, 2011

    Dominion Transmission, the pipeline transport subsidiary of energy giant Dominion, is being sued over a lease deal in Preston County, West Virginia signed in 1955. Dominion drilled a single well in 1959 which let it retain rights to develop more wells in the future in perpetuity. According to the lawsuit, Dominion assigned the lease rights to its subsidiary Dominion Transmission with plans to someday use the geological formations of the land as a natural gas storage field. Such activity would yield no royalties for the landowners who want to nullify the lease and find someone who will actually drill gas wells on the property, specifically tapping the Marcellus Shale.

    Read More “Dominion Transmission Sued in WV Over 56 Year-Old Lease – Landowners Want Marcellus Drilling to Begin”

  • Baker Hughes | Energy Services | Frac Tech | GASFRAC | Halliburton | Hydraulic Fracturing | Industrywide Issues | Schlumberger | Universal Well | Weatherford Intl

    Technology Advances Lead to “Greener” Hydraulic Fracturing

    May 27, 2011May 27, 2011

    A somewhat technical, but informative article on how hydraulic fracturing technology is getting more environmentally friendly was recently published in Drilling Contractor. Halliburton, Baker Hughes, Schlumberger, Weatherford International, GasFrac Energy Services, Universal Well Services and Frac Tech Services went on the record with Drilling Contractor about the environmental aspects of hydraulic fracturing and “green” developments.

    From the introduction of the article we see the critical role fracking plays in natural gas development:

    Read More “Technology Advances Lead to “Greener” Hydraulic Fracturing”

  • Broome County | Energy Companies | Inflection Energy | Lease & Royalty Payments | New York

    Windsor, NY Landowners Receive $2,750 per Acre and 18 Percent Royalties in Lease Deal with Inflection Energy

    May 26, 2011May 26, 2011

    Earlier this year, a group of 40 Town of Windsor (NY) landowners with a cumulative 3,000 acres signed a gas lease agreement with Denver-based Inflection Energy to allow Marcellus Shale drilling when New York’s moratorium is eventually lifted. The landowners expected their signing bonus checks by March 3rd, but that didn’t happen due to delays by the lawyers (see MDN story here). The delays are now over the the Windsor landowners have started receiving their bonus checks totaling $8.25 million.

    Read More “Windsor, NY Landowners Receive $2,750 per Acre and 18 Percent Royalties in Lease Deal with Inflection Energy”

  • Economic Impact | Industrywide Issues | Jobs | Statewide WV | West Virginia

    WV Natural Gas Industry Already Employs 35K People with Average Salaries of $60K

    May 26, 2011May 26, 2011

    The Independent Oil and Gas Association of West Virginia has just kicked off a new advertising campaign to educate the public to the benefits of natural gas drilling in the state.

    Read More “WV Natural Gas Industry Already Employs 35K People with Average Salaries of $60K”

  • Chevron | Energy Companies | Exxon Mobil | Hydraulic Fracturing | Industrywide Issues

    Exxon Mobil, Chevron Face Shareholder Questions about Environmental Impact of Hydraulic Fracturing at Annual Meetings

    May 26, 2011May 26, 2011

    Two of the worlds largest energy companies have made major investments in shale gas. Exxon Mobil made a $35 billion investment when it bought XTO in 2010. Exxon’s goal is to double U.S. natural gas output in the next ten years. Chevron has concentrated its investment specifically in the Marcellus Shale with the $3 billion purchase of Atlas Energy and a large acreage deal with Chief Oil & Gas. Chevron expects to increase its output of gas seven-fold in the next few years.

    But investors in each of these energy giants want “more disclosure” on the so-called environmental risks involved with horizontal hydraulic fracturing, as witnessed at their annual meetings yesterday:

    Read More “Exxon Mobil, Chevron Face Shareholder Questions about Environmental Impact of Hydraulic Fracturing at Annual Meetings”

  • Hydraulic Fracturing | Industrywide Issues | Lancaster County | Pennsylvania | Wastewater

    City of Lancaster, PA Water Testing Finds No Radioactivity Nor Salty Bromides in the Susquehanna River

    May 25, 2011May 25, 2011

    A few months ago, the New York Times published a series of articles alleging that Pennsylvania’s waterways may contain radioactivity because Marcellus Shale drilling wastewater had been treated and discharged into streams and rivers in the state. The articles created a good deal of fear that drinking water supplies have been polluted in Pennsylvania.

    Read More “City of Lancaster, PA Water Testing Finds No Radioactivity Nor Salty Bromides in the Susquehanna River”

  • Carroll County | Columbiana County | Lease & Royalty Payments | Ohio

    Carroll County, OH Landowners Offered $3200 Per Acre for Shale Gas Leases

    May 25, 2011May 25, 2011

    A Rotary meeting in East Liverpool, Ohio discussed shale gas drilling in Columbiana and Carroll Counties for both the Marcellus and Utica shales. Among the things learned at the meeting:

    Read More “Carroll County, OH Landowners Offered $3200 Per Acre for Shale Gas Leases”

  • Dominion Energy | Energy Services | Harrison County | Industrywide Issues | Jobs | Marshall County | Ohio County | West Virginia | Wetzel County

    Union Protests Dominion Transmission in WV Over Lack of Local Workers in Building Pipelines

    May 25, 2011May 25, 2011

    A local union in West Virginia is set to protest natural gas transmission facilities owned by Dominion over the issue of jobs and out-of-state workers being brought in to build new pipelines in the Wetzel County.

    Read More “Union Protests Dominion Transmission in WV Over Lack of Local Workers in Building Pipelines”

  • Bradford County | Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Roads | Sullivan County

    Chesapeake Energy Repairing 14 Roadways in Northeastern PA This Summer

    May 25, 2011May 25, 2011

    In a press release issued yesterday, Chesapeake Energy announced it is working on 14 different roadway repair projects in Bradford and Sullivan Counties in Northeastern Pennsylvania due to be completed this summer.

    Read More “Chesapeake Energy Repairing 14 Roadways in Northeastern PA This Summer”

  • Forced Pooling | Industrywide Issues

    Forced Pooling for Landowners in the Marcellus Shale Region

    May 24, 2011May 24, 2011

    Forced pooling is the concept that forces landowners to allow drilling under their property if enough of their neighbors have signed leases. Many people (PA Gov. Tom Corbett and MDN among them) think it’s not a good idea—calling it the equivalent of “private eminent domain.” But the reality is, it does widely exist. In fact, forced pooling exists (by various names) in all of the Marcellus Shale states except Maryland.

    In New York and Pennsylvania its called compulsory integration. In West Virginia its called mandatory pooling, and in Virginia its called compulsory pooling. So when you hear those terms bandied about, it means “forced pooling.” A special note: Forced pooling provisions in both Pennsylvania and West Virginia do not (yet) apply to Marcellus Shale drilling, but proponents are trying to make it happen in those states.

    Read More “Forced Pooling for Landowners in the Marcellus Shale Region”

  • Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Regulation | Washington County

    MarkWest, Range Resources File Legal Appeal Over Denial of Permit for Gas Compressor Station in Cecil, PA

    May 24, 2011May 24, 2011

    MarkWest wants to build a Marcellus Shale gas compressor station in Cecil Township (Washington County), PA. They filed an application for a “special exception” to allow them to build the plant but were denied by the zoning board. On April 21, MarkWest filed an appeal in Washington County civil court to have the decision overturned. MarkWest said at the time it hopes to settle the matter “amiably” but was filing to “preserve its rights.” Part of the appeal states:

    Read More “MarkWest, Range Resources File Legal Appeal Over Denial of Permit for Gas Compressor Station in Cecil, PA”

  • Brooke County | Energy Companies | Hancock County | Hydraulic Fracturing | Industrywide Issues | Mercuria Energy | West Virginia

    Mercuria Energy Interested in Sewage Wastewater from Weirton, WV for Use in Fracking

    May 24, 2011

    Swiss-based energy company Mercuria is interested in the effluent (sewage wastewater) that comes from the treatment plant in Weirton, West Virginia to use as a source of water for hydraulic fracturing operations.

    Read More “Mercuria Energy Interested in Sewage Wastewater from Weirton, WV for Use in Fracking”

  • Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Utica Shale

    Chesapeake Files Application to Drill First Well in Columbiana County (Ohio) Targeting the Utica Shale

    May 23, 2011May 23, 2011

    The first application for a drilling permit has been received in Columbiana County, Ohio, and it’s an application to drill in the Utica Shale with the hope of someday striking oil. This is likely the first of many applications to come, according to Ohio officials.

    Read More “Chesapeake Files Application to Drill First Well in Columbiana County (Ohio) Targeting the Utica Shale”

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