Marcellus Drilling News

Bradford County | Crime | Industrialization | Industrywide Issues | Pennsylvania

Marcellus Areas See Increase in Drunk Driving, Lesser Crimes
August 15, 2011August 15, 2011

A statistical certainty is that as the population of an area grows, there’s bound to be more drunk driving arrests and more crime in general—one of the “hazards” of an increasing population. And so it is in Bradford County, PA and other regions in the Marcellus Shale where the Marcellus drilling boom is happening. The increase in crime is not caused by drilling, according to law enforcement officials, but is a simple fact that where there’s more people there are bound to be more criminal incidents. It’s one of the negatives of drilling, like industrialization of rural areas (more trucking, more noise, more traffic) that must be recognized and if possible, mitigated or at least anticipated.

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About MDN | MDN Weekly Update

MDN Weekly Update – Aug 14, 2011: Who Should Regulate Fracking?
August 14, 2011

It seems the New York Times does not enjoy the same reputation it once did—at least with MDN readers. The results of last week’s poll, which asked:

With respect to shale gas drilling, is the New York Times a reliable source of information?

No (81%, 173 Votes)
Yes (16%, 35 Votes)
Not sure (3%, 6 Votes)

Total Voters: 214

Who Should Regulate Fracking?

In early May, the federal Department of Energy (DOE), under the direction of DOE Secretary Steven Chu, assembled a panel of seven experts to create a list of industry “best practices” for shale gas drillers (see MDN story here). Known as the Shale Gas Subcommittee of the Secretary of Energy Advisory Board (SEAB), the group was charged with producing an initial report in 90 days that will identify immediate steps “to improve the safety and environmental performance of hydraulic fracturing.” That first report was released this past week (see MDN story here).

In MDN’s reporting, we stated that it is an inescapable conclusion the only way the recommendations in the report could be fully implemented would be if the federal government takes over regulation of hydraulic fracturing, which has been the mantra of anti-drillers for a number of years. MDN makes no bones: We are against the federal government taking on oversight of oil and gas drilling. Why? It’s best left to the individual states, which is their constitutional right and duty, to oversee drilling in their own states. They know their state the best, and are equipped to handle it. Just say “no” to the feds!

However, some MDN readers have taken issue with our conclusion that the recommendations of this report would mean a federal government takeover of oil and gas drilling regulatory oversight. We can argue the finer points, but the larger issue, and this week’s poll question, is this: Who should regulate hydraulic fracturing? Is it best done by the federal government? The individual state governments? Or perhaps a blend of both? Register your vote along the right side of any page on the site.

An editorial note: Starting August 22nd and going through September 5th, MDN will be on holiday and will not publish. We will return on September 6th.

Below are the most recent “top 5” lists and the calendar of Marcellus related events for the balance of August.

Happy reading!
Jim Willis, Editor

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

What Chemicals are Being Used by Marcellus Drillers in PA?
August 12, 2011August 12, 2011

Want to know what chemicals are being used at a nearby Marcellus gas well that’s being drilled near you in Pennsylvania? Right now, it’s not so easy to find out. Here’s how Pennsylvania’s fracking chemical disclosure rules work, which went into effect in February of this year:

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Industrywide Issues | New York | Public Opinion | Statewide NY

Quinnipiac Poll Shows NYers Support Fracking Despite Concerns
August 12, 2011August 12, 2011

Quinnipiac University of Hamden, CT just completed a new statewide public opinion poll in New York which shows some interesting results about New Yorker’s attitudes toward drilling. Overall, more New Yorker’s favor drilling in the Marcellus Shale than oppose it. Hydraulic fracturing, the method used by drillers to free the gas, has been so misrepresented by those opposed to drilling that New Yorkers are still leery of it, even though most don’t even understand what it is and how it works. Overall 52 percent of New Yorkers believe fracking will damage the environment, but nearly half, 47 percent, believe the economic benefits are worth the risk.

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

WV Invests $250K in Marcellus Ethane Processing Plant
August 12, 2011August 12, 2011

The state of West Virginia is investing $250K in a company that turns ethane from Marcellus gas wells into ethylene. Think of it as a “mini-cracker plant”. Shell and other large energy companies are looking to establish large cracker plants in the Marcellus region—a chemical plant that will take over $1 billion to build (see this MDN story). In the meantime, smaller and leaner companies are providing some of the same kinds of service a cracker plant provides—at much less of an investment. Aither Chemicals is one of those companies.

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Hydraulic Fracturing | Industrywide Issues | Regulation

DOE Report Recommends Fed Takeover of Shale Gas Regulation
August 11, 2011August 11, 2011

In early May, the federal Department of Energy (DOE), under the direction of DOE Secretary Steven Chu, assembled a panel of seven experts to create a list of industry “best practices” for shale gas drillers (see MDN story here). Known as the Shale Gas Subcommittee of the Secretary of Energy Advisory Board (SEAB), the group was charged with producing an initial report in 90 days that will identify immediate steps “to improve the safety and environmental performance of hydraulic fracturing.” That first report was released today (a full copy is embedded below).

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

Northeast Continues Drilling in Morgantown Despite Ban
August 11, 2011August 11, 2011

The ongoing battle between Morgantown, WV and Northeast Natural Energy over two proposed gas wells located close to Morgantown continues, and gets interesting. Northeast had been working with Morgantown to address concerns that the two wells they propose to drill are close to the water intake for the city. Northeast believed everything was fine until city council voted to ban hydraulic fracturing both inside and outside of its borders—up to one mile outside (allowable under WV law). Northeast’s proposed wells are within that one mile radius, so the ban shut them down. Or did it?

According to press accounts, Northeast has just started work drilling the second Marcellus gas well and plans to start fracking the first well in September, regardless of the ban:

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Air Quality | Industrywide Issues | Ohio | Regulation | Statewide OH

OH to Require Permits for Diesel Engines at Drilling Sites (!)
August 11, 2011August 11, 2011

At the prompting of the federal EPA, and perhaps to preempt any action from the EPA, state officials in the Marcellus region are looking closely at air pollution issues that may be caused by shale gas drilling. For example, permits are likely on the way for drillers in Ohio for a whole list of commonly used equipment found in drilling operations, including…diesel and internal combustion engines?!

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jefferson County (OH) | Ohio | Wastewater

OH Village Wants a Fracking Water Treatment Plant
August 11, 2011August 11, 2011

Mingo Junction, a small village along the Ohio River in Jefferson County, Ohio is looking to tap into revenue from the Marcellus and Utica Shale drilling industry spouting up around it. The mayor and village council are trying to locate alternative sources of revenue since the local steel mill closed, leaving the village in a lurch after constructing a new water treatment plant specifically at the mill’s request. Mingo Junction is looking to leverage the one thing it has plenty of—water.

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Brooke County | Hydraulic Fracturing | Industrywide Issues | Regulation | West Virginia

Another WV City Repeals Previous Marcellus Drilling Ban
August 11, 2011August 11, 2011

It seemed for a while like passing Marcellus drilling bans was all the rage for cities in West Virginia. Now it seems they can’t repeal those bans fast enough. The latest to repeal a previous ban is Wellsburg:

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Industrywide Issues | New York | Statewide NY | Taxation

NY Comptroller Wants New Tax to Cover Gas Drilling Accidents
August 10, 2011August 10, 2011

Even though New York still has not adopted new drilling regulations, and likely won’t until late this year, and even though drilling will not begin until 2012 at the earliest, New York politicians are lining up to dip their hands into driller’s and landowners’ pockets. The latest example is New York State Comptroller Thomas DiNapoli who has proposed a bill to the state legislature to create a driller-funded pool of money (i.e. a new tax on drillers) to cover the cost of any future accidents that may (or may not) happen because of drilling.

The problem, of course, is that any pool of money in Albany—home of politicians with sticky fingers—has a half-life of about 30 minutes before it will be borrowed, moved from one side of the ledger to the other, or otherwise disappear.

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Accidents | Energy Services | Industrywide Issues | Laser Northeast Gathering | Pennsylvania | Pipelines | Susquehanna County

Three Mud Spills in PA Creek from Laser Pipeline Construction
August 10, 2011August 10, 2011

Laser Northeast Gathering recently broke ground is quickly working to complete a new 30-mile shale gas pipeline, called the Susquehanna Gathering System, that spans much of Susquehanna County in northeastern Pennsylvania and crosses the southeast corner of Broome County in New York State where the pipeline will connect to the larger Millennium interstate pipeline (see this MDN story).

But Laser is having troubles with drilling underneath Laurel Lake Creek, a waterway considered to have “exceptional value” by the PA Department of Environmental Protection. In the span of just a few weeks, drilling under the creek resulted in three separate incidents of non-toxic drilling mud being spilled into the creek, the latest incident occurring on Monday.

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Bradford County | Landowner Coalition News | Pennsylvania

Northeast PA Landowners Discuss Forming Large Gas Coalition
August 10, 2011August 10, 2011

Individual landowners and landowner groups are looking to organize into a large coalition in northeastern Pennsylvania in an effort to promote Marcellus Shale gas drilling in a safe, responsible way and to counter those who want to stop drilling. A small group of landowners met on Tuesday in Wysox (Bradford County), PA to discuss strategy. Tom Shepstone from Energy in Depth Northeast Marcellus Initiative (inaccurately referred to as Tom Shepp in the media article below), addressed the group on the need for large coalition of PA landowners—like the 70,000-member Joint Landowners Coalition of New York.

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Industrywide Issues | Jobs

Shale Gas Industry Continues to Add Jobs at Rapid Pace
August 10, 2011August 10, 2011

Even though the economy is in the dumper, the price for oil and gas is dropping and unemployment is at record highs, the natural gas industry—shale gas in particular—is adding jobs at a rapid pace. The entire energy sector including oil and gas is on track to add 200,000 jobs in 2011—an astonishing number given economic conditions.

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Economic Impact | Industrywide Issues

Shale Gas Drives Most Energy Company Deals in Past 3 Months
August 10, 2011August 10, 2011

Just how big a deal is shale gas in the U.S. in general, and the Marcellus Shale in particular? According to a mergers and acquisitions report for the energy sector just released by PricewaterhouseCoopers, shale gas is driving most of the energy deals happening right now:

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Chesapeake Energy | Energy Companies | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

New Pipeline Permit Rules Delay Landowner Royalties in PA
August 9, 2011August 9, 2011

A new set of rules governing pipeline construction permits issued by the U.S. Army Corps or Engineers is causing extreme delays in getting gas from wells to market according to Chesapeake Energy. The new rules have turned what was an average 45-day process to file paperwork into a 300-day process.

The bottom line is that wells that are drilled and completed sit idle because gathering pipelines aren’t being built to them, and consequently landowners are not receiving royalty checks.

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