Marcellus Drilling News

MDN Weekly Update

MDN Weekly Update – Jun 5, 2011
June 5, 2011

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

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

No (67%, 133 Votes)
Yes (26%, 52 Votes)
I don’t know (7%, 15 Votes)

Total Voters: 200

This Week’s Poll

I have made no secret that I think New York’s Commissioner of the DEC, the man in charge of the agency that oversees all oil and gas drilling in NY—Joe Martens—is mostly on the side of anti-drilling. I’m told to “tone it down Jim, don’t rock the boat, we have to work with this guy” with regard to Martens—yet I have to call them like I see them. For years as president of the Open Space Institute his job, his life’s mission, has been to take as much land out of circulation from any kind of development (including drilling) as possible. And his on-the-record statements as recently as last year (prior to his job at the DEC) have Mr. Martens stating he wants to go very, very slow with regard to allowing drilling in New York (see MDN’s original profile of him here). His more recent statements showing his go-slow approach led me to predict that Marcellus drilling in New York will not begin until 2012 at the earliest (see MDN’s prediction here).

Mr. Martens is clearly dragging his feet with regard to release of the new draft Marcellus drilling regulations. But his boss, Gov. Andrew Cuomo, gave him a little motivation this past week—telling the DEC to have the new draft regulations ready by July 1st (see the MDN story here). A “kick in the pants” if you will. Ouch. Can’t have made Mr. Martens very happy. As strongly as he opposes drilling (in my opinion), he also wants to keep his job and make the boss happy. If indeed the new draft regulations are ready in early July, does that move the timetable up and might drilling permits be issued sooner rather than later? A good question. I would like to know what you think. So this week’s poll question:

When do you think Marcellus Shale drilling in New York State will begin?

Will it be this year? Next year? Never? Please note: This is not when you hope it will begin, but when you think it actually will begin. 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 – Jun 5, 2011”
Cayuga County | Industrywide Issues | New York | Public Opinion | Wastewater

Marcellus Drilling Debate Now Affecting Conventional Gas Drilling in New York State
June 3, 2011June 3, 2011

The debate over horizontal hydraulic fracturing in the Marcellus Shale has now spilled over to affect conventional gas drilling in New York State. Protesters rallied outside Auburn City Hall (a small city in Upstate New York) yesterday afternoon to oppose the local municipal sewage treatment plant’s practice of accepting gas drilling wastewater for treatment and release into the Owasco River. None of the wastewater accepted comes from Marcellus Shale drilling—it all comes from conventional natural gas drilling in New York State.

Read More “Marcellus Drilling Debate Now Affecting Conventional Gas Drilling in New York State”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Krancer Wants Tighter Rules Governing Marcellus Drilling in the State
June 3, 2011June 3, 2011

Pennsylvania Department of Environmental Protection (DEP) Secretary Michael Krancer sent a letter on May 27 to Lt. Gov. Jim Cawley, chairman of the governor’s Marcellus Shale Advisory Commission. Krancer, along with Cawley, is a member of the commission. The commission’s charter is to deliver a list of comprehensive policy recommendations to the governor and the state legislature by July 22 to improve Marcellus drilling in the state.

The fact that Krancer is calling for tighter regulations is a sure sign that new regulations are on the way in PA. Among the recommendations outlined in the letter:

Read More “PA DEP Sec. Krancer Wants Tighter Rules Governing Marcellus Drilling in the State”
Broome County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Regulation | XTO

Large Turnout for DRBC Hearing in Deposit, NY – Last Minute Surprise from DEC Head Joe Martens
June 2, 2011June 2, 2011

The Binghamton Press & Sun-Bulletin (PSB) reports about 300 people attended last evening’s Delaware River Basin Commission hearing in Deposit (Broome County), NY to consider an application from XTO Energy (now owned by ExxonMobil) to withdraw 250,000 gallons of water per day from the Oquaga Creek in the Town of Sanford to support Marcellus Shale drilling activities in New York, when and if drilling begins. The PSB said, “While both sides enjoyed healthy representation on Wednesday, the majority of the speakers spoke against the withdrawal.”

XTO’s application is the first in New York State, and only the second application in the overall DRBC region. The first application, which was approved in July 2010, was from Stone Energy for water withdrawals in Wayne County, PA.

Read More “Large Turnout for DRBC Hearing in Deposit, NY – Last Minute Surprise from DEC Head Joe Martens”
Energy Companies | Erie County | Hydraulic Fracturing | Industrywide Issues | Lake Erie Energy Partners | Pennsylvania | Pipelines | Regulation

Lake Erie Energy Partners Walks Away from North East Township – Refuses to Drill Any More Wells
June 2, 2011June 2, 2011

Gas drilling opponents in North East Township (Erie County), PA have won a small victory in forcing one driller to leave the area. Lake Erie Energy Partners completed just one of 11 planned wells in the Township, but they will walk away and not complete the other 10 because of a proposed ban on hydraulic fracturing and because Township officials have reneged on a promise to the company.

Read More “Lake Erie Energy Partners Walks Away from North East Township – Refuses to Drill Any More Wells”
Economic Impact | Hydraulic Fracturing | Industrywide Issues

Shale Gas Technologies Now Being Used to Unlock Vast Quantities of Shale Oil
June 2, 2011June 2, 2011

An article in the Toronto Globe and Mail highlights the promising future for shale oil—that’s right, shale oil. The technologies that drillers have used to unlock vast amounts of natural gas from shale are now starting to be used to unlock vast amounts of oil.

Read More “Shale Gas Technologies Now Being Used to Unlock Vast Quantities of Shale Oil”
CONSOL Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Westmoreland County

Westmoreland County, PA Municipal Authority Initiates New Water Testing for Reservoir Located Near Marcellus Drilling
June 2, 2011June 2, 2011

The Municipal Authority of Westmoreland County, PA will start a new water testing and monitoring program for the Beaver Run Reservoir which supplies water to about 150,000 residents. CONSOL Energy has 100 shallow gas wells on municipal property near the Reservoir, and is starting to drill Marcellus Shale wells. The new water testing program is precautionary to ensure water is not being affected by nearby drilling activity.

Read More “Westmoreland County, PA Municipal Authority Initiates New Water Testing for Reservoir Located Near Marcellus Drilling”
Broome County | Delaware County | Energy Companies | Industrywide Issues | New York | Regulation | XTO

DRBC Hearing in Deposit, NY Today – JLCNY Encourages Gas Drilling Supporters to Attend
June 1, 2011June 1, 2011

The Delaware River Basin Commission (DRBC) will hold a hearing today in Deposit, NY to consider an application from XTO Energy to withdraw up to .25 million gallons of water per day from the Oquaga Creek in the Town of Sanford, NY. The water withdrawals are to support XTO’s drilling activities—both exploration and production—in Broome and Delaware Counties (NY). Bear in mind drilling has not yet begun in New York, and further, the DRBC has not yet released drilling guidelines for the area they oversee which includes parts of the Marcellus Shale region in both New York and Pennsylvania.

If the DRBC approves the water withdrawal, that is a good first step for those who support drilling, and (perhaps) a signal that the DRBC will allow drilling to commence soon in Pennsylvania in those areas it controls. (The DRBC has not allowed any drilling in the Marcellus areas under its jurisdiction in PA.)

For more details about today’s DRBC hearing in Deposit, visit this web page: //www.state.nj.us/drbc/XTOEnergy.htm. MDN has embedded the hearing docket below that contains the particulars of XTO’s application to the DRBC.

The following email notification about today’s meeting was received by MDN last evening from the Joint Landowners Coalition of New York (JLCNY).

Read More “DRBC Hearing in Deposit, NY Today – JLCNY Encourages Gas Drilling Supporters to Attend”
Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

NY Attorney General Sues the Federal Government Over Fracking
June 1, 2011June 1, 2011

In an attempt to stop Marcellus Shale drilling in New York by using the court system, NY Attorney General Eric T. Schneiderman announced on Tuesday that he is suing the federal government “to commit to a full environmental review of proposed regulations that would allow natural gas drilling – including the potentially harmful "fracking" technique – in the Delaware River Basin.” AG Schneiderman made his initial threat last month (see MDN’s coverage here). The AG’s announcement seems timed to coincide with a hearing set for today by the Delaware River Basin Commission to consider an application to withdraw water for drilling purposes.

The press statement from the AG’s office (full text below) contains unsubstantiated allegations that fracking poses risks and threats to the environment—the same recitation of inaccurate claims we’ve heard time and again from those who seek an outright ban on gas drilling. It also presumes it is the federal government’s role to regulate drilling—which under current law, it is not. Those who oppose drilling seek to regulate it using the “back door” of the Safe Drinking Water Act (SDWA), the National Environmental Policy Act (NEPA) and other federal laws. This lawsuit seeks to push a federal takeover of drilling by regulating and controlling it at the federal level.

Read More “NY Attorney General Sues the Federal Government Over Fracking”
Hydraulic Fracturing | Industrywide Issues | Regulation

EPA Administrator Lisa Jackson Likes Natural Gas, But Isn’t So Sure About Fracking
June 1, 2011June 1, 2011

Federal Environmental Protection Agency (EPA) Administrator Lisa Jackson made a passing reference to natural gas and hydraulic fracturing at a Congressional hearing last week. Both anti- and pro-drilling supporters felt she leaned in their respective direction. Here is what has been reported about her comments:

Read More “EPA Administrator Lisa Jackson Likes Natural Gas, But Isn’t So Sure About Fracking”
Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Daily News Columnist Tells New Yorkers to Get a Grip and Stop Freaking Out About Fracking
June 1, 2011June 1, 2011

Columnist Bill Hammond in the New York Daily News has some advice for his fellow New Yorkers: Stop freaking about fracking. In a column published Tuesday, Hammond says, among other things:

Read More “Daily News Columnist Tells New Yorkers to Get a Grip and Stop Freaking Out About Fracking”
Antero Resources | Energy Companies

Antero Resources Investing an Extra $126 Million in 2011 – Most of it for Marcellus Shale Drilling
June 1, 2011June 1, 2011

The Antero Resources board of directors approved a $126 million increase in the company’s capital budget for 2011. Antero’s revised capital budget for 2011 is $685 million and includes $519 million for drilling and completion, $86 million for the construction of gathering pipelines and facilities and $80 million for leasehold acquisitions. The budget was revised to fund increased drilling in core areas in the Marcellus and Piceance, the expansion of gathering infrastructure in the Marcellus and the acquisition of additional leasehold opportunities in Antero’s core area in the Marcellus. The $126 million increase was allocated 53% to drilling, 35% to gathering pipeline expansion and 12% to leasehold.

Read More “Antero Resources Investing an Extra $126 Million in 2011 – Most of it for Marcellus Shale Drilling”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Statewide PA

Cabot Oil & Gas Boosts Marcellus Gas Output 35% in a Single Day with Compressor Plant Upgrades
May 31, 2011May 31, 2011

Cabot Oil & Gas recently boosted it’s daily output of natural gas from the Marcellus in Northeastern PA by a full 35 percent in just 24 hours when new sections of a compressor station went online. Cabot is now producing 420 million cubic feet (Mmcf) of natural gas per day from the Marcellus—up from 310 Mmcf. They also have two new wells producing nearly 30 Mmcf per day each—a new daily high in output for single wells for Cabot.

Read More “Cabot Oil & Gas Boosts Marcellus Gas Output 35% in a Single Day with Compressor Plant Upgrades”
Energy Companies | Pennsylvania | Southwestern Energy | Susquehanna County

Southwestern Energy Plans to Drill Marcellus Shale Wells on Property Bordering Former Hazardous Waste Dump in N.E. PA
May 31, 2011May 31, 2011

Southwestern Energy plans to construct a well pad and drill six to eight Marcellus Shale wells on the border of a former hazardous waste landfill in New Milford (Susquehanna County), PA. A local group has started a letter-writing campaign to stop the project.

Read More “Southwestern Energy Plans to Drill Marcellus Shale Wells on Property Bordering Former Hazardous Waste Dump in N.E. PA”
Pennsylvania | Statewide PA

Is PA Sitting on the Largest Natural Gas Reserves in the World?
May 31, 2011May 31, 2011

Interesting comments about the scope of natural gas reserves in both the Marcellus and Utica Shales under Pennsylvania, from a state DEP official:

Read More “Is PA Sitting on the Largest Natural Gas Reserves in the World?”
Brooke County | Industrywide Issues | Ohio County | Roads | Statewide WV | West Virginia

Road Damage from Gas Drilling in WV Overwhelms Highway Department
May 31, 2011May 31, 2011

Road damage from truck traffic to Marcellus Shale drilling sites has overwhelmed the West Virginia Department of Highways (DOH) ability to respond, according to one DOH official.

Read More “Road Damage from Gas Drilling in WV Overwhelms Highway Department”

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