Marcellus Drilling News

MDN Weekly Update

MDN Weekly Update – May 15, 2011
May 15, 2011May 15, 2011

Thank you to all of you who voted in last week’s (and MDN’s first-ever) online poll. Here are the results from 403 MDN readers:

Are You in Favor of Shale Gas Drilling?
Yes – with safeguards in place (69%, 278 Votes)
No – can’t be done safely (26%, 103 Votes)
Not sure – still forming an opinion (5%, 22 Votes)

Total Voters: 403

This Week’s Poll

I’ve made no bones about the fact that I believe the federal Environmental Protection Agency (EPA) is “out of bounds” in trying to regulate hydraulic fracturing. It is my opinion that regulation of gas drilling is best left to the individual states. Others will argue that water crosses boundaries in the form of rivers and streams and aquifers, and therefore a federal role is important to protect water supplies. I’m interested in knowing what you think. So this week’s question, as plainly and succinctly as I can ask it (no hidden agendas, no attempt to manipulate the outcome for those who like to needle me) is: Should the federal EPA regulate hydraulic fracturing? Go to any page on the website and click to vote on the right-hand side of the page. 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 15, 2011”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Wastewater

Federal EPA Continues to Bully Pennsylvania Using the Safe Water Drinking Act
May 13, 2011May 13, 2011

The federal Environmental Protection Agency (EPA) continues to assert itself into states’ business by claiming authority of the federal Safe Water Drinking Act. The latest example was yesterday. The EPA requested (ie demanded) details from six drillers who operate in Pennsylvania on where they will dispose of fracking fluid wastewater now that the PA Department of Environmental Protection (DEP) has told drillers that certain municipal sewage treatment plants not specially equipped will no longer be able to accept fracking wastewater. The EPA wants to know where that wastewater will now go.

But the PA DEP itself has not escaped the heavy hand of the federal EPA either. The EPA has “requested” (ie demanded) PA DEP provide a list of facilities that accept fracking wastewater. And the EPA has other “requests” for the DEP on how to do things better (see the EPA press release below).

Read More “Federal EPA Continues to Bully Pennsylvania Using the Safe Water Drinking Act”
Carrizo Oil & Gas | Energy Companies | Pennsylvania | Statewide PA | Sullivan County | Susquehanna County | Wyoming County (PA)

Carrizo to Drill 30 Marcellus Shale Wells in Wyoming County, PA – Laser Pipeline will Handle all of Carrizo’s Gas in the Region
May 13, 2011May 13, 2011

Richard Smith, vice president of land for Carrizo Oil & Gas, spoke to the Wyoming County Chamber of Commerce at a luncheon yesterday outlining Carrizo’s plans for drilling in the Pennsylvania Marcellus Shale. He said that Carrizo will have five well pads “fully developed” in Wyoming County by September 2012. He also said Carrizo would begin drilling in Sullivan County by the end of this year.

Smith offered these facts and figures about Carrizo’s Marcellus drilling operations:

Read More “Carrizo to Drill 30 Marcellus Shale Wells in Wyoming County, PA – Laser Pipeline will Handle all of Carrizo’s Gas in the Region”
Columbiana County | DPS Penn | Energy Companies | Lease & Royalty Payments | Ohio

Ohio School Signs Marcellus Drilling Lease for School Property – $2K per Acre, 15 Percent Royalties
May 13, 2011May 13, 2011

United Local Schools in Hanoverton (Columbiana County), Ohio approved a Marcellus Shale gas drilling lease with DPS Penn yesterday:

Read More “Ohio School Signs Marcellus Drilling Lease for School Property – $2K per Acre, 15 Percent Royalties”
Industrywide Issues | New York | Regulation | Statewide NY

Pro-Drilling Supporters Meet with Legislative Officials in Albany, NY – Gov. Cuomo Stresses Patience
May 12, 2011May 12, 2011

The standard operating procedure for groups opposed to Marcellus Shale drilling in New York State is to organize protests. The protests in Albany and other locations have been small in numbers, but those opposed have been “loud” in their opposition. Supporters of drilling, on the other hand, are taking a different approach. Instead of protest rallies, they arrange private meetings and go for small group discussions. That strategy was on display Wednesday in Albany:

Read More “Pro-Drilling Supporters Meet with Legislative Officials in Albany, NY – Gov. Cuomo Stresses Patience”
Brooke County | Chesapeake Energy | Energy Companies | Industrywide Issues | Regulation | West Virginia

WV City Votes to Ban Marcellus Shale Gas Drilling, Court Challenge Coming from Chesapeake Energy
May 12, 2011May 12, 2011

City council members from Wellsburg, West Virginia, located in the panhandle area of the state (in Brooke County), on Tuesday voted to ban natural gas drilling and hydraulic fracturing both inside the city limits and outside city limits within a mile.

Read More “WV City Votes to Ban Marcellus Shale Gas Drilling, Court Challenge Coming from Chesapeake Energy”
Energy Companies | Pennsylvania | Statewide PA | Tioga County (PA) | Ultra Petroleum

Ultra Petroleum Continues Rapid Growth in Marcellus Shale Gas Drilling – Tioga PA Well Output 2x Initial Estimates
May 12, 2011May 12, 2011

Ultra Petroleum’s growth continues to be double-digit, largely because of it’s Marcellus Shale gas drilling operations. From Ultra’s recent press release on first quarter activity we get the following Marcellus operational update:

Read More “Ultra Petroleum Continues Rapid Growth in Marcellus Shale Gas Drilling – Tioga PA Well Output 2x Initial Estimates”
Energy Companies | EQT Corp

EQT Corp Sells Kentucky Gas Pipeline to Invest in More Marcellus Shale Drilling – On Track to Drill 100 Marcellus Wells This Year
May 12, 2011May 12, 2011

EQT Corporation has just sold a gas pipeline in Kentucky for $390 million to Spectra Energy Partners so it can invest the money in Marcellus (and Huron) shale gas drilling. From EQT’s press announcement about the sale we also learn EQT is on track to drill 100 Marcellus gas wells this year. EQT has revised their projected shale gas output upward from 180 billion cubic feet equivalent (Bcfe) to 185-190 Bcfe for 2011, and expects output to grow to 250 Bcfe in 2012.

Read More “EQT Corp Sells Kentucky Gas Pipeline to Invest in More Marcellus Shale Drilling – On Track to Drill 100 Marcellus Wells This Year”
Energy Services | Heckmann | Industrywide Issues | Pennsylvania | Statewide PA | Wastewater

Wastewater Company Heckmann Corp. Makes Major Expansion in Shale Gas Regions, Including the Marcellus
May 12, 2011May 12, 2011

Heckmann Corporation, a water solutions company focused on water issues and, in particular, oil and natural gas exploration and production, has completed four acquisitions that substantially expand the Company’s water solutions for energy development business segment, including a major presence in the Marcellus Shale region. Within the past year, the California-based company has grown from 30 employees to over 750, and from $8.6 million in revenue for the first quarter of 2010 to $23.8 million for the first quarter of 2011.(1) Heckmann has a small but rapidly growing operational base in Pittsburgh for it’s Marcellus Shale operations.

Read More “Wastewater Company Heckmann Corp. Makes Major Expansion in Shale Gas Regions, Including the Marcellus”
Hydraulic Fracturing | Industrywide Issues | Regulation

Former PA DEP Officials, Industry Group Point Out Problems with Duke University Study Linking Methane in Water with Fracking
May 11, 2011May 11, 2011

More questions cast doubt on the Duke study which claims to prove there is a link between gas drilling and high concentrations of methane in nearby well water, including from someone quoted in the Duke study itself:

Read More “Former PA DEP Officials, Industry Group Point Out Problems with Duke University Study Linking Methane in Water with Fracking”
Energy Services | Industrywide Issues | Ohio | Patriot Water Treatment | Trumbull County | Wastewater

Ohio’s First Marcellus Shale Wastewater Treatment Plant Now Open for Business
May 11, 2011May 11, 2011

The first Marcellus Shale wastewater treatment plant in Ohio (Trumbull County) is now open for business, with more on the way:

Read More “Ohio’s First Marcellus Shale Wastewater Treatment Plant Now Open for Business”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Two Environmental Groups Propose List of Changes to PA Oil & Gas Act to Tighten Controls on Marcellus Drilling
May 11, 2011May 11, 2011

The Pennsylvania Environmental Council (PEC) and the Chesapeake Bay Foundation (CBF) provided a detailed prescription of amendments they say “must be made” to the Pennsylvania Oil and Gas Act so that state law can effectively regulate and manage deep shale and unconventional drilling techniques that were never contemplated when the law was enacted. Called the “Marcellus Shale Amendments to the Pennsylvania Oil and Gas Act,” the proposal was provided to PA Gov. Corbett’s Marcellus Shale Commission and members of the Pennsylvania General Assembly in separate meetings on Tuesday.

Among the 50 proposed changes in the PA Oil and Gas Act proposed by the two groups:

Read More “Two Environmental Groups Propose List of Changes to PA Oil & Gas Act to Tighten Controls on Marcellus Drilling”
Hydraulic Fracturing | Industrywide Issues

MDN In-depth: Duke University Study Links Marcellus Shale Gas Drilling with Methane Contamination of Water Wells
May 10, 2011May 10, 2011

A peer-reviewed study by Duke University researchers claims to show a link between natural gas drilling in the Marcellus Shale that uses horizontal drilling with hydraulic fracturing and an increased level of methane (natural gas) in water wells that are within 1,000 feet of the drilling. The report, titled “Methane contamination of drinking water accompanying gas-well drilling and hydraulic fracturing,” was published Monday online in the Proceedings of the National Academy of Sciences. A full copy of the five page report is embedded below so you can read it for yourself.

Duke researchers tested 68 water wells in Pennsylvania and New York, finding elevated levels of methane in 85% of the wells.

Read More “MDN In-depth: Duke University Study Links Marcellus Shale Gas Drilling with Methane Contamination of Water Wells”
Pennsylvania | Statewide PA | Utica Shale

Finding Utica Shale Gas in Eastern PA Not Likely According to Experts
May 10, 2011

Penn State University professor of geosciences and Marcellus Shale expert Terry Engelder says the Utica Shale that sits below the Marcellus in eastern Pennsylvania will likely not produce much in the way of natural gas:

Read More “Finding Utica Shale Gas in Eastern PA Not Likely According to Experts”
Chesapeake Energy | Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Exxon Mobil | New York | Schlumberger | Shell | Southwestern Energy | Statewide NY

Surprise! New York State’s Pension Fund Invests $1 Billion in Shale Gas Drilling Companies
May 9, 2011May 9, 2011

In an interesting (some would say hypocritical) twist on New York State’s moratorium against drilling in the Marcellus Shale because of environmental concerns, it seems the state’s comptroller has no problem investing some of the state’s huge $140 billion pension fund in shale gas drilling operations, to the tune of $1 billion:

Read More “Surprise! New York State’s Pension Fund Invests $1 Billion in Shale Gas Drilling Companies”
Hydraulic Fracturing | Industrywide Issues | Regulation

Federal Department of Energy Appoints Panel to Draft Shale Gas Drilling “Best Practices” (ie New Mandates)
May 9, 2011May 9, 2011

The federal government just can’t keep itself out of the states’ affairs when it comes to gas drilling. The federal Department of Energy (DOE) has convened a panel of seven experts to create a list of industry “best practices” (which will no doubt become mandates) for how gas drillers should drill in the Marcellus and other shale formations. Immediate steps they identify “to improve the safety and environmental performance of hydraulic fracturing” are due in a report in 90 days. The complete press release from the DOE is included below.

Read More “Federal Department of Energy Appoints Panel to Draft Shale Gas Drilling “Best Practices” (ie New Mandates)”