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    Driller Sues NY Town to Challenge Local Drilling Ban

    judge's gavelAnschutz Exploration this week will file a lawsuit against the Town of Dryden (NY) to strike down the town’s recently passed ban on gas drilling. Dryden is a small township with two villages—Dryden and Freeville—located in Tompkins County, near Ithaca. Its land area is 94.2 square miles with some 13,500 people living there.

    In New York, the state reserves the right to regulate the oil and gas industry and, according to state law, local municipalities are restricted to regulating road use with respect to oil and gas drilling. Dryden’s measure banning drilling (passed in August) is, according to the drilling industry, illegal. This lawsuit will challenge it.

    Dryden officials argue that the state does not and cannot tell a municipality how it can regulate other industries, and the gas industry should be no different. It is a classical constitutional issue and both sides are watching this one closely.

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    Susquehanna River Contaminated, but Not by Fracking Chemicals

    The mighty Susquehanna River is 464 miles long, running from upstate New York through Pennsylvania and into Maryland before emptying into the Chesapeake Bay. Much of the Susquehanna runs through prime Marcellus drilling country along the way.

    Last week, the remnants of Tropical Storm Lee dropped massive amounts of rain along the Susquehanna and its tributaries, causing some of the worst flooding ever for communities along the path of the river. Some activists who oppose Marcellus Shale gas drilling speculated that fracking chemicals have now found their way, via the floodwaters, into the Susquehanna River. But their concern is misplaced. Fracking chemicals have not fouled the river, but there’s plenty of other things as a result of TS Lee that have:

    Read More “Susquehanna River Contaminated, but Not by Fracking Chemicals”

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    South Butler School Signs Lease with Exxon Mobil Phillips

    The South Butler County School District (Butler County, PA) school board, after a year and a half of meetings and research, has voted to lease school district land for Marcellus Shale gas drilling. The lease is with Phillips Resources, recently bought by and now part of Exxon Mobil, and includes some interesting provisions, including an extra fee per well drilled, and an allowance for pooling, but not forced pooling.

    Read More “South Butler School Signs Lease with Exxon Mobil Phillips”

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    Dallas Twp, PA Approves Natural Gas Pipeline Near School

    On Wednesday, Dallas Township (Luzerne County), PA supervisors voted unanimously to approve an agreement with Chief Gathering to run a natural gas pipeline within a third of a mile of the Dallas district schools and through a local housing development. Some of the residents who attended the meeting strongly objected to the vote, accusing the supervisors of approving an agreement not available for review by residents and accusing Chief and other drilling industry companies of “monster arrogance.”

    Read More “Dallas Twp, PA Approves Natural Gas Pipeline Near School”

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    NY Landowners Face New Threat: Floodplain Boundaries

    floodplain boundariesAs many of you have heard via the national media, the Binghamton, NY (Broome County) area—where much of the drilling in New York State is likely to occur once drilling begins—was just hit with the worst flooding in its history, after the previous “worst ever” flooding occurred only five years ago, in 2006. This type of flooding is referred to as a “100-year flood” and it causes the government to re-draw floodplain maps to indicate where such areas are capable of extreme flooding.

    Landowners who live in the Greater Binghamton area and who want to lease their land for shale gas drilling will want to closely watch where the boundaries are drawn because the state Department of Environmental Conservation (DEC), which regulates shale drilling, is looking to put land inside those floodplains off limits to drilling.

    Read More “NY Landowners Face New Threat: Floodplain Boundaries”

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    Canadians Establish New “Guiding Principles” for Fracking

    Canadian natural gas producers recently announced new guiding principles (embedded below) for hydraulic fracturing that guide water management and improved water and fluids reporting practices for shale gas development in Canada. The principles were created by members of the Canadian Association of Petroleum Producers (CAPP) and apply to all CAPP natural gas producing members, large and small, operating in Canada.

    Read More “Canadians Establish New “Guiding Principles” for Fracking”

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    Two More Gathering Pipelines Seek PA Public Utility Status

    Even though Laser Northeast Gathering has withdrawn its application to become a public utility with the power of eminent domain as MDN reported yesterday, two other pipeline companies with applications before the Pennsylvania Public Utility Commission continue to move forward. Peregrine Keystone Gas Pipeline plans to construct a gathering line in Greene, Fayette and Washington counties in western PA, and Pentex Pipeline plans a gathering pipeline in Bradford County in northeast PA.

    Read More “Two More Gathering Pipelines Seek PA Public Utility Status”

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    U.S. Will Export Marcellus Natural Gas to Canada by 2020

    The TransCanada Canadian Mainline is an 8,762 mile natural gas pipeline that spans Canada from the Alberta/Saskatchewan border east to the Québec/Vermont border, along the way connecting with other natural gas pipelines in Canada and the U.S. With respect to the U.S., the gas today flows one way: from Canada to the U.S. But NGI Shale Daily reports that by 2020, the gas will be flowing the other way.

    Read More “U.S. Will Export Marcellus Natural Gas to Canada by 2020”

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    Debunking the Myth that Fracking Causes Water Contamination

    bricksIn the ongoing heated debate over hydraulic fracturing, can we all at least agree that chemical contamination does not come from the mostly water and sand (with a little bit of chemical additive) that is pumped a mile or more below the earth’s surface? The general public hears from the media echo chamber that “fracking threatens water supplies” and assumes that somehow, in some way, chemicals will rise up from a mile below the ground and contaminate water wells and aquifers near the surface. It just doesn’t happen—it’s a physical impossibility. Here’s an excellent analogy recently printed in Popular Mechanics to put it in perspective:

    Read More “Debunking the Myth that Fracking Causes Water Contamination”

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    Laser Pipeline Withdraws Request to Become PA Public Utility

    In a split 3-2 decision in May of this year, the Pennsylvania Public Utility Commission (PUC) voted to confer public utility status on Laser Northeast Gathering, a 30-mile, $55 million pipeline that stretches from Susquehanna County, PA to Broome County, NY (see MDN story here). When complete, the pipeline will connect wells in Susquehanna County with the Millennium Pipeline in Broome County. The Millennium is an interstate pipeline that transports gas from Steuben County in western NY to Rockland County, near New York City, hooking in with several other large interstate pipelines along the way. Laser sought public utility status so it would have the power of eminent domain—the power to run the pipeline under property even if landowners object. At the time, MDN objected.

    Read More “Laser Pipeline Withdraws Request to Become PA Public Utility”

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    Fracking Pays! Frac Tech Floats IPO to Raise $1.15B

    Even though “fracking” – a reference to hydraulic fracturing – has become a dirty word for some, it’s certainly a good business to be in. Frac Tech International is one such company in the business of providing fracking services to oil and gas drillers. Just 11 years old and with yearly revenues exceeding a billion dollars, Frac Tech is set to float shares of stock and become a public company listed on the New York Stock Exchange. The company plans to change its name to FTS International and wants to raise $1.15 billion in an initial public offering (IPO).

    Read More “Fracking Pays! Frac Tech Floats IPO to Raise $1.15B”

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    Western PA Township Residents Try to Ban Gas Drilling

    Several thousand residents of Peters Township, a small township in Washington County, Pennsylvania, are attempting to force a ban of all natural gas drilling in the township by amending the township’s charter. It’s not clear whether or not the town council will allow a vote on the proposed measure:

    Read More “Western PA Township Residents Try to Ban Gas Drilling”

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    New York’s 60-Year History of Fracking

    One size fits allWhen it comes to hydraulic fracturing, or “fracking”, one size does not fit all with respect to regulation, and moratoriums. Most people caught up in the frenzy of opposing fracking, especially in New York, may not realize that there are thousands of wells drilled in New York State, right now, that are fracked every year, and have been going back for the past 60 years. And with no cases of groundwater contamination.

    Wait, what? Fracking happens right now?! Yeah, that’s right. But it’s not the same kind of fracking that would be used to get shale gas.

    Read More “New York’s 60-Year History of Fracking”

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    Ohio is Full Speed Ahead and Ready for Fracking

    While some states are poking along (New York), and others have either outright banned or placed a temporary moratorium on hydraulic fracturing (NJ, NC), Ohio, under Gov. John Kasich, is moving forward quickly with Marcellus and Utica Shale gas drilling. Specifically, Ohio is full speed ahead with hydraulic fracturing.

    Read More “Ohio is Full Speed Ahead and Ready for Fracking”

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    MDN Weekly Update – Sept 11, 2011: Remembering 9/11, Shale Gas Exports

    MDN enjoyed the last two weeks of August off, so this is the first weekly update since returning. Thank you for the kind notes received of both “have a great break” and “welcome back.” My wife and I recently observed our 25th wedding anniversary, so we thought we would celebrate with a cruise. Our cruise left the Port of New York on Saturday, August 27, just as Hurricane Irene was starting to arrive. I’ll spare you the details, but let’s just say we now know what it feels like to ride a roller coaster for 24 hours straight as you sail through the edge of a hurricane!

    Not long after returning, the area where we live—Binghamton, NY—felt the effects of Tropical Storm Lee. It brought the worst flooding in our recorded history—over 10 inches of rain in a 24 hour period. We have friends who have lost almost everything they own from flood damage. Fortunately we’re fine, but there are thousands of hurting people in this area. Perhaps you might say a prayer, and if you are so inclined, make a donation to the American Red Cross Disaster Relief Fund. The Red Cross has been out here in force to help. A fine organization.

    And I can’t let the 10th anniversary of the attacks on our great country pass without a few words. I once worked for a company with offices in New York. That company was holding a conference at the top of 1 WTC on that fateful day. I personally knew and had worked with some of the people who died an unspeakable death on 9/11. People that I called “friend.” I pause today to remember and reflect on their lives and the lives of all those lost ten years ago today. I recommend a Michael W. Smith YouTube video of his song, “There She Stands” as a fitting way to remember and reflect.

    I hope you’ll forgive this personal digression, but amidst the hurting, and the remembering, I find my emotions quite raw. It’s important to remember that in the rough and tumble of our debate over shale gas drilling and hydraulic fracturing, that there are people on the other side of the aisle. People with feelings. You know I strongly support drilling and so am willing to take the arrows that come my way. I have to remind myself sometimes that I need to keep a civil tongue in what is increasingly an uncivil debate. And so I encourage people on both sides of the debate today to remember to be civil. Those on the other side of this debate are not your enemy. Our country has plenty of enemies, and our friends and neighbors who think differently about drilling in the Marcellus and Utica Shales are not among them.


    Below are the results of the poll which has been posted for the past three weeks.

    Poll resultsHydraulic fracturing should be regulated by:

    Federal government (13%, 41 Votes)
    State governments (52%, 166 Votes)
    Both should have a role (35%, 111 Votes)

    Total Voters: 318

    Should U.S. Shale Gas be Exported?

    This past week MDN highlighted a story about exporting shale gas (see here). Dominion Resources has made application with the U.S. Department of Energy to export natural gas, much of which comes from the Marcellus. If Dominion and the other requests to export now on the books at the DOE are approved, some 12 percent of our natural gas supplies would be exported overseas. Those in favor of exporting will say “it’s about time we start exporting again” and that it will boost the U.S. economy by providing jobs and help reverse the long trend that we as a nation are net importers instead of net exporters. Another argument in favor is that we have a surplus right now—more gas is available than we can reasonably use here at home, so why not export it? Supporters will also say that the free market should determine whether or not the gas stays here or goes overseas. All strong arguments to be sure.

    On the other side, critics of drilling point out that one of the main arguments used to “sell” the concept of drilling is that it will provide abundant and cheap gas here at home—a source of cheap energy for the next two or three generations—and that we can finally wean ourselves from imported oil from countries not friendly toward the U.S. And if we start exporting a large portion of our supplies, that means less supply at home and higher prices. Critics will say “it’s the almighty buck” that companies want and that they don’t care about the citizen’s of their own country.

    Let’s be clear, profit is what drives companies and seeking profit is not evil or bad. If you think so, go live in Cuba. See what that worker’s paradise is like. But MDN also believes that it may be wise to keep tight control over how much gas gets exported. Yes, companies need to make a profit—let’s not deny them that! But on the other hand, let’s not get the gas and immediately sell it to someone else. I’d rather see our auto industry convert to NG cars and trucks, and more home heating converted, and electrical power plants, etc. With an abundant and cheap supply of natural gas here at home, it will happen. But not if we sell it overseas and hike the prices here at home. It’s a fine line and what MDN has called “a thorny issue.” How much fiddling can and should we do with the free market?

    So MDN’s poll question this week: Should the U.S. allow shale gas to be exported? Register your vote along the right side of any page on the site.

    Below are the most recent “top 5” lists and the calendar of Marcellus related events for the next two weeks.

    Happy reading,
    Jim Willis, Editor

    Read More “MDN Weekly Update – Sept 11, 2011: Remembering 9/11, Shale Gas Exports”

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    Thorny Issue: Dominion Files Request to Export Shale Gas

    Cove Point Terminal - MarylandOne of the strongest arguments in favor of drilling for Marcellus and other shale gas in the U.S. is that it provides a cheap alternative fuel for Americans—a “home grown” energy source that benefits everyone. It’s a simple and undeniable fact: Cheap energy translates into economic prosperity for all citizens. Cheap energy makes it easier for businesses to produce goods and services, and that means jobs.

    Energy companies often make the “cheap domestic energy” argument when talking about the benefits of shale gas drilling—rightfully so. But when those same companies then start exporting natural gas, well, it’s a tad hypocritical. Exporting leads to less supplies here at home, and less supplies means higher prices. Energy companies will argue we have more than enough—an excess of natural gas—and by exporting they create more jobs here at home. But others (like MDN) are not so sure that argument holds up, especially for a nascent industry with huge potential to transform the energy picture here at home.

    Read More “Thorny Issue: Dominion Files Request to Export Shale Gas”