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    More Work Ahead in New York Before Drilling Begins

    Binghamton Press & Sun-Bulletin (Oct 7):
    Much more work ahead

    An editorial in the Binghamton Press & Sun-Bulletin, no doubt written in part by Tom Wilbur, anti-drilling shill for the eco-nut groups. It acknowledges what MDN has already noted: The New York DEC is interested in pushing forward with responsible drilling in New York, eco-nut groups are not. The battle is only beginning. Landowners need to write and call and make their voices heard on the proposed drilling regulations.

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    Wheeling, WV Drilling Vote Delayed

    Intelligencer Wheeling News Register (Oct 7):
    Drill Vote Delayed

    Wheeling, WV city council members have delayed a vote to allow Chesapeake Appalachia (a subsidiary of Chesapeake Energy) to begin drilling on city-owned land. From the article:

    Though the Wheeling Park Commission has approved the lease allowing the company to drill on its property at Wheeling and Oglebay parks, city officials want to gain more information about the potential environmental impact of Chesapeake’s work before allowing the company to drill on city property.

    Council members want to visit some of Chesapeake’s other drilling sites first to see first-hand what they look like. No complaints here. Council members should satisfy themselves that it will be safe and beneficial to the local community (which it will be), and then move forward.

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    Residents: Keep drilling discharge out of the Susquehanna

    Wilkes-Barre Times Leader (Oct 7):
    Residents: Keep drilling discharge out

    The Pennsylvania Department of Environmental Protection (DEP) held a public hearing on Tuesday in Tunkhannock, PA on the question of whether to grant a permit to discharge treated water that comes from drilling into the Susquehanna River. Local members of the community turned out to (mostly) oppose it. The article says landowners and drilling companies were not present at the meeting. The view the media and eco-nut groups want to create in people’s minds is that water used in hydrofracturing is hopelessly contaminated and can never be reused again. From the article:

    But the economic development comes at an environmental cost that some residents are unwilling to accept, such as contamination to water that’s forced underground to crack the shale and release the gas.

    The process is called hydraulic fracturing, and the fluid used, while mostly water, contains hazardous chemicals and lots of salt.

    North Branch Processing LLC hopes to build a plant near Skyhaven Airport to clean the “frac” water and discharge it into the river. The hearing, called by the state Department of Environmental Protection, was on a permit for that discharge.

    Residents said the water should be reused for “fracing” rather than put into the river.

    No argument here that the water can and should be reused for more hydrofracturing. However, at some point, some of this water will need to be treated and put back into the environment. If it’s unsafe to do so, then hydrofracturing is fundamentally an unsafe practice that should be disallowed. MDN believes hydrofactured water can be treated so that it’s safe. Let’s get some more science and facts injected into the debate and less speculation and scare tactics.

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    Range Announces Management Additions and Bank Borrowing Base Reaffirmation

    Press Release from Range Resources (Oct 7):
    Range Announces Management Additions and Bank Borrowing Base Reaffirmation

    FORT WORTH, TEXAS – Range Resources Corporation announced today that it has hired Joseph H. Frantz, Jr. as Vice President of Engineering and K. Scott Roy as Vice President of Government and Regulatory Affairs for the Marcellus Shale Division located in Pittsburgh, Pennsylvania.

    Mr. Frantz brings more than 26 years of petroleum engineering experience with Texaco, S.A. Holditch & Associates and Schlumberger. Recently, Mr. Frantz led Schlumberger’s shale evaluation team for various emerging shale formations, including the Barnett, Fayetteville and Marcellus. Mr. Frantz has extensive experience working in the Appalachian Basin, and he has performed studies on topics ranging from reservoir simulations to hydraulic fracture optimization. He holds a bachelor’s degree in Petroleum and Natural Gas Engineering from Penn State University.

    Mr. Roy previously served as Executive Deputy Chief of Staff in the Office of the Governor of the Commonwealth of Pennsylvania. He has spent more than 17 years in public service in various positions, including key roles in both the Rendell and Ridge administrations and acting as the Governor’s liaison to various regulatory and environmental agencies. Mr. Roy earned his bachelor’s degree from Allegheny College and his juris doctorate from the Dickinson School of Law at Penn State University.

    Range also announced that at its regularly scheduled review, the Range bank group unanimously reaffirmed the Company’s $1.5 billion borrowing base effective September 30, 2009. Range elected to retain the existing $1.25 billion commitment amount, which provides in excess of $800 million in available liquidity. There were no changes to the interest rate, repayment terms or number of banks in the credit facility.

    Range’s Chairman and CEO, John H. Pinkerton, commented, “We are extremely pleased to announce these two new management additions to our Marcellus Shale team. Both Joe and Scott are Pennsylvania natives, who will report to Ray Walker in our Pittsburgh Marcellus Shale Division. Joe Frantz will head up our technical evaluation, not only of the Marcellus, but also for the other Appalachian shale formations. His extensive technical background in shale reservoir evaluations and optimized completion techniques is a key addition to our technical team. As the pioneer of the Marcellus Shale play, we fully understand the importance of forging a strong partnership among public, regulatory and industry interests to ensure that the development of the Marcellus Shale is accomplished in a responsible way. The addition of Scott Roy reflects Range’s commitment to being a good steward of Pennsylvania’s resources. Lastly, the unanimous affirmation of our borrowing base by our bank group reflects our low-cost structure, high-margin asset base and strong financial position. We are well positioned to continue to execute our plan of low-cost, consistent per share growth.”

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    Top Rendell aide quits to join gas driller

    Philadelphia Inquirer (Oct 7):
    Top Rendell aide quits to join gas driller

    An interesting bit of news: A top aide to Gov. Ed Rendell is stepping down to take a job in the drilling industry:

    K. Scott Roy is stepping down as the $146,000-a-year executive deputy chief of staff to Rendell to become vice president for government relations and regulatory affairs for Range Resources Corp., a Texas-based company with a major drilling stake in Pennsylvania.

    And another bit of interesting news found in this article is that Gov. Rendell wants to forego an extraction tax–for now (although the Democrats in the legislature are still trying to get a tax passed for this year):

    [Rendell’s call for an extraction tax] changed Aug. 31. In a move that took even some of his top aides by surprise, Rendell said at a news briefing that he was giving up his push for the tax this year.

    He said he changed his mind after meeting with industry executives who convinced him that imposing the tax now would stunt the growth of drilling in the state.

    “We felt we should let the industry get off to a good start, and that surpasses our need for money,” Rendell said Aug. 31. He said he favored starting such a tax next year.

    The article is mostly quoting eco-nut groups moaning about a potential conflict of interest by Mr. Roy’s “sellout” to the drilling industry.

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    Natural gas quest: Technical report carving deep divisions between gas companies and industry critics

    Binghamton Press & Sun-Bulletin (Oct 4):
    Natural gas quest: Technical report carving deep divisions between gas companies and industry critics

    The eco-nuts are in a snit over the Department of Enviromental Conservation’s proposed new Supplemental Generic Environmental Impact Statement for drilling in the Marcellus Shale in New York State. As previously posted on Marcellus Drilling News, in a cursory glance at the proposed new rules for New York, I believe the rules are somewhat over-restrictive, but not as bad as they could be. It appears the eco-nuts read it the same way and this article, authored by eco-nut stenographer Tom Wilbur (who dutifully “reports” the anti-drilling side in every article he writes), chronicles the apoplexy going on inside the eco-nut movement. I am encouraged. Let’s hope the New York DEC quickly adopts the SGEIC so drilling can finally begin.

    Likewise, let’s hope Maurice Hinchey (Democrat Congressman from Upstate New York) is unsuccessful in passing a bill in Congress that would effectively bring control of all gas drilling under the jurisdiction of the rogue Environmental Protection Agency under the guise that the EPA is the only agency who can properly protect drinking water supplies. It is an attempt by the federal government to grab power away from the states. New York (and all states) must resist this legislation. Beat back the eco-nuts! Let the drilling begin.

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    New York State Releases Draft Rules for Drilling in the Marcellus Shale

    Originally run on RSSBinghamton.com on October 1st:

    The New York State Department of Environmental Conservation (DEC) has finally released its Supplemental Generic Environmental Impact Statement for drilling in the Marcellus Shale. Instead of making drilling companies do an environmental impact statement for each well they drill, the DEC decided to do one “generic” environmental impact statement that will apply to all drilling sites throughout the state. You can read the document for yourself here: //www.dec.ny.gov/energy/58440.html.

    I have not yet had a chance to fully digest the 500+ page document. I have reviewed some of it (a lot of it is technical). An article in the Press & Sun-Bulletin purports to cover some of the highlights. Read the P&SB article here: NY regulators propose pre-emptive checks of gas wells in Marcellus Shale. But let me warn you that Tom Wilber, the P&SB writer, shades all of his Marcellus drilling articles with anti-drilling sentiment. For example, he says:

    The DEC’s regulatory overhaul began after Southern Tier residents crowded into school auditoriums and town halls to attend public information sessions hosted by the agency in the summer of 2008. Those sessions often became heated, as regulators were unable to satisfactorily answer questions about water consumption, waste disposal, chemical handling and other aspects of large scale Marcellus drilling.

    Perhaps so Mr. Wilber. Maybe that’s why New York decided to do a complete review in the first place. But in the interests of being fair and balanced, why didn’t you also mention the rally held just recently (this past summer) in Afton, where thousands of landowners showed up to support drilling? There were more people in one location at one time to support drilling than there ever have been in any location who oppose it.

    He also asserts in the article:

    DEC officials have watched and learned from developments in Dimock Township, Pa., where Cabot Oil & Gas recently had to shut down some operations after repeated spills and environmental problems. Explosive levels of methane contaminated some drinking water supplies earlier this year. More recently, an 8,000 gallon spill of chemicals used to stimulate well production polluted a creek and wetland.

    Yes, Cabot has had problems and they are being appropriately spanked for it by the Pennsylvania Department of Environmental Protection (PA’s version of our DEC). The situation is being carefully monitored and handled. But again, the lingering sentiment from the paragraph seems to be that all drilling is unsafe and all drilling companies are out to screw the populace. What about the hundreds (thousands?) of other natural gas wells in PA that are doing just fine with their operations? No spills or contamination of anything. No mention of that.

    My very preliminary take on the new DEC proposed regulations: Likely overbearing and restrictive, but at least we’re moving again. After a public comment period until Nov. 30, the DEC will hopefully sew this thing up and drilling can finally begin in New York.

    Stay tuned as more will surely come out about the proposed new regulations as people have time to review them in detail.

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    CNX Gas Corp. chief: Slow down or stop gas drilling

    Pittsburgh Tribune-Review (Oct 3):
    CNX Gas Corp. chief: Slow down or stop gas drilling

    Gas prices are depressed right now. The question is, how long will it go on? While prices are low, CNX Gas CEO Nick DeIuliis says drillers have to remember to be good business people and slow down or stop drilling to reign in costs. What does that mean for landowners? Will drilling slow down or stop any time soon? Good questions to ponder. A good article to read to give you an update on gas prices on the commodities market and the overall drilling landscape.

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    PA House budget unlikely to advance

    Pittsburgh Post-Gazette (Oct 3):
    House budget unlikely to advance

    Pennsylvania still has not adopted a budget for the new fiscal year. Part of the wrangling is how to raise taxes to meet the ever growing demand of government to transfer wealth from the producers of society to the non-producers. In PA, the Democrats want to tax natural gas drilling, which of course will take money out of the landowner’s pocket…make no mistake, any tax on drilling will be passed on as an “expense” by the energy companies, reducing royalties to landowners. The Republicans in the PA statehouse are trying to stop it. Make your voice heard if you’re in PA!

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    Toxins tied to fish kill may have hitchhiked: Investigators weigh whether mining equipment is culprit

    Pittsburgh Post-Gazette (Oct 4):
    Toxins tied to fish kill may have hitchhiked: Investigators weigh whether mining equipment is culprit

    A highly speculative and irresponsible article trying to tie an algae buildup along the Pennsylvania-West Virginia border to drilling for natural gas. I would go as far as saying it’s pure fantasy. But that’s what passes for “news” these days. Part of the article ties in completely unrelated news, like the Cabot problems in Northeast PA, with this one–a favorite tactic of people who don’t have a case.

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    Natural gas quest: DEC investigating disposal of fluids by drilling vendor

    Press & Sun-Bulletin (Oct 3):
    Natural gas quest: DEC investigating disposal of fluids by drilling vendor

    Pretty much a non-story story, typical “hit piece” by leftist media. There is a company providing chemicals for drilling, for Pennsylvania companies (PA because so far, since there IS no drilling in New York). Said company, Northeast Mud Services Co. of Bridgeport, W.Va. (NEMSCo), is alleged to have leaked chemicals at their warehouse facility. Problem is, no one can find any leaks. The other complaint is that they have the audacity to wash their trucks, the fear being that an eye-dropper full of chemical may have contaminated the mud through which the trucks travel and then affixed itself to the truck, and so spray washing the trucks to keep them clean is a no-no. Both allegations came from an anonymous “tip”.

    You can expect more of this nonsensical reporting to ramp up in the coming months as the New York DEC tries to sign off on the Supplemental Generic Environmental Impact Statement.

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    Exxon Leases 19,400 Acres in Pennsylvania Marcellus Shale

    From a Reuters news story on the Financial 24 website:

    Exxon Mobil Corp, the world’s largest publicly traded company, has leases on 19,400 acres in the Marcellus Shale, a formation that is said to hold vast amounts of natural gas.

    In September, Exxon bid $85.2 million for 18 blocks in the Marcellus, a large shale formation that runs through parts of New York, Pennsylvania, Ohio and West Virginia.

    Exxon, based in Irving, Texas, was the high bidder on six Marcellus blocks, paying a total of $22.4 million for acreage in Tioga and Lycoming counties in Pennsylvania, company spokesman Patrick McGinn, said.

    Read the full article: Exxon has 19,400 acres in the Marcellus shale

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    Steuben County League of Women Voters Go on Record as Anti-Drilling in the Marcellus

    It seems anti-drilling groups, although small in numbers, are popping up like dandelions in the spring. The latest is the Steuben County League of Women Voters, a supposedly non-partisan group (but that’s a lie, LWV is an extremely partisan group). WENY-TV has video from a recent meeting held by the League. The meeting started with a propaganda movie about drilling in Colorado to whip up the crowd.

    Read the account and watch the WENY segment: Steuben County League of Women Voters Holds Natural Gas Drilling Meeting

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    Marcellus Anti-Drilling Protesters Assemble in Cooperstown Outside SPE Convention

    The Daily Star (Oneonta) reports that upward of 50 protesters from the Southern Tier and central New York gathered outside of Otesaga Hotel in Cooperstown to voice their disapproval of drilling in the Marcellus. Inside the hotel was a meeting/convention of the Society of Petroleum Engineers (SPE).

    The Daily Star dutifully recounts the nightmarish (and inaccurate) party line of anti-drilling proponents. But to their credit, The Daily Star also reports a few counter arguments from a few people who are in the know and educated about these things–the engineers attending the SPE meeting whose job it is to safely get gas (and oil) from the ground.

    Read the full article: 50 protest gas drilling at Otesaga

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    Finally Some Common Sense About (Not) Taxing Marcellus Production in Pennsylvania

    Pennsylvania Rep. Dave Reed (Republican, Indiana, PA) “gets it” when it comes to drilling in the Marcellus. Gov. Ed “fast Eddie” Rendell (Democrat), wants to tax drilling in the Marcellus. According to the Indiana Gazette (PA), fast Eddie’s plan calls for:
    Read More “Finally Some Common Sense About (Not) Taxing Marcellus Production in Pennsylvania”