• | | |

    Anti-Drilling Organizer Predicts Environmental Holocaust

    Pocono Record (Oct 9):
    Environmentalist: Firms drilling for natural gas would ‘destroy’ local state game lands

    A reporter with anti-drilling views (Jessica Cohen) interviews a local anti-drilling organizer (Pat Carullo) in Northeast Pennsylvania. In the process, you get an article shot full of lies. Mr. Carullo is upset over 2,500 acres owned by the Mushpaugh Sportsman’s Association in Lackawaxen (privately owned, I might add), that are being leased to Cabot Oil & Gas. Mr. Carullo predicts environmental holocaust. He then goes on to rail about the state leasing public lands for drilling, confusing the two issues–the state leasing of public lands held in trust for all citizens, and citizens (or groups of citizens) who possess private property rights guaranteed by the U.S. Constitution. The entire “article” is so full of random tirades and so completely one-sided, it’s a joke.

  • | | |

    Pennsylvania Budget Almost There – With No Drilling Tax

    Philadelphia Inquirer (Oct 9):
    Pa. budget pieces start to fall into place

    With a state budget still not adopted, and now over 100 days late, Pennsylvania is finally about there. The good news for drillers…no severance tax this year:

    Also not in the package is a tax that some lawmakers had wanted to impose on natural-gas drilling in the vast formation known as the Marcellus Shale.

    Republicans in the Senate – and later Rendell – opposed starting such a tax this year, arguing that it would stunt drillers in an industry still in its infancy in the state.

    Kudos to the Republican Senate for protecting landowners’ money.

  • |

    Philadelphia Inquirer – In a Snit Over Rendell Aide

    Philadelphia Inquirer (Oct 8):
    Editorial: Drilling for friends

    A snarky editorial with a snarky title from the lefties at the Philadelphia Inquirer. Actually has me laughing with a smile on my face. 🙂 The self-righteous anti-drillers are outraged that a top Democrat has defected from government to work for industry–in this case an aide to Gov. Rendell who was the governor’s point man on drilling in the Marcellus in Pennsylvania. He’s gone to work for (gasp), an energy company that’s drilling in PA. The anti-drillers see it as a betrayal and hint there may have been payoffs involved. For shame! Payoffs in the Rendell administration? Say it ain’t so. Shocking, I tell ya.

    Anyway, MDN finds it very amusing that the Inquirer never says a peep when top Democrats defect (either at the state level or federal level) to take high paying jobs with lobbying firms. It seems only people like Karl Rove (who left the Bush White House to work for Fox News), and people on the right deserve their righteous indignation. Oh, and Democrats who flip and start to work for “the other side.”

    Like a said, puts a smile on my face.

  • |

    Fair and Balanced Column on Drilling in Philly Inquirer

    Philadelphia Inquirer (Oct 8):
    Daniel Rubin: Hard to extract consensus on natural gas

    A very fair and balanced piece by Philadelphia Inquirer columnist Daniel Rubin. In fact, a delight to read with some very good information. Mr. Rubin recently attended a meeting hosted by the League of Women Voters, who had invited people on both sides of the drilling issue to speak. On the pro-drilling side was Stephen Rhoads, chief lobbyist for the state’s oil and gas industry. Rhoads shared some excellent information, including how much taxing extraction in Pennsylvania would actually raise ($26 million this year), and how many active natural gas wells there are in PA (329 hydrofactured gas wells right now). He also said the gas industry will provide 174,000 jobs in PA at an average salary of $60,000 per year. Be sure to read this article.

  • | | |

    Anti-drilling Crowd Calls for “Balance” Between Energy and Environment

    Poughkeepsie Journal (Oct 8):
    Outdoors: Balance must be struck between energy, environment

    More misinformation from the anti-drilling crowd. The “reporter” for this article, Bill Conners, starts with general information that is of interest for everyone in New York:

    According to the New York State Department of Environmental Conservation, there have been more than 75,000 oil and gas wells drilled here since the late 1800s; some 14,000 remain active.

    He then briefly describes hydrofracturing, and moves on to cite the Dunkard Creek problem of fish dying along the border of Pennsylvania and West Virginia. As previously noted in MDN, the problem is about an overgrowth of algae, of a strain of algae not normally found in the creek. There may or may not be a tie with gas drilling. The link that is being made is “perhaps” the algae somehow got onto drilling equipment and trucks used in drilling and hitchhiked to the Dunkard Creek. This is highly speculative at best. More science please!

    But the anti-drilling crowd is in a rush to tie Dunkard Creek to the thought in readers’ minds that “drilling causes fish to die where ever it’s used.” Mr. Conners, in this article, does not detail the issue of Dunkard Creek, he merely mentions lots of fish dying and that it is somehow tied to drilling–leaving the impression that chemicals are the cause. Here is the sum total, in context, of what he says on the matter:

    Unfortunately, there are risks associated with using the [hydrofacturing drilling] technique. The various fluids used can, and sometimes do, damage aquifers and nearby water bodies. In early September in Blacksville, W.Va., residents started noticing dead fish along Dunkard Creek, just below the border of Pennsylvania. It wasn’t long before the entire fish population was wiped out along 35 miles of the previously fertile stream. It is virtually impossible to know how long it will take for the damage to be mitigated, whether by remediation or by Mother Nature.

    There are charges flying back and forth, and there is an ongoing investigation as to whether or not the damage to Dunkard Creek came as the result of a spill from a drilling operation along the creek. Nationwide, it is estimated that 90 percent of the wells are drilled using fracking. It is not hard for things to go wrong, and when they do, property is damaged and lives turned on end.

    Here is the story as told in the Pittsburgh Post-Gazette from last week:

    An invasive toxic algae, blamed for contributing to the massive Dunkard Creek fish kill along the Pennsylvania-West Virginia border, may have hitchhiked to the region aboard equipment used in Marcellus shale drilling.

    And this:

    But the West Virginia agency [Department of Environmental Protection] doesn’t know how the algae got into the creek.

    “We might never know how it got there,” said spokewoman Kathy Cosco. “We are trying to determine if it’s present already in other water bodies or has spread.”

    Investigators also are looking at the possibility that someone illegally dumped drilling wastewater into the creek.

    Yes, wastewater from drilling is one of the possible scenarios being looked at, but that, as well as “hitchhiking algae” are pure speculation right now. There is no science, no proof, no direct tie-in with drilling. But you won’t find that in this story because it doesn’t fit the template of the anti-drilling crowd. Read your news carefully.

  • | | | |

    Pro-drilling Editorial from Corning Leader

    Corning Leader (Oct 7):
    Gas drilling an important opportunity

    Well, what do you know? A positive editorial from a news outlet (for a change). This one from the Corning Leader says in part:

    [S]ometime next spring or summer we’ll see the beginning of what could be a drilling bonanza in the Southern Tier. Hundreds of wells have already been tapped in Pennsylvania and the same level of activity could happen here.

    Potentially, that could generate billions in new revenue for a sustained period of time. Gas companies, support companies, engineering firms and so on are expected to follow others that have already located in the Southern Tier to tap into the northern tip of the Marcellus Shale. Those companies will create jobs, pay taxes and have a beneficial ripple effect through other sectors that could revive one of the poorest areas of the country.

    Thank you for talking about the positive side of drilling!

  • | | |

    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.

  • | | |

    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.

  • |

    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.

  • | | |

    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.”

  • | | | | |

    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.

  • | | |

    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.

  • | | |

    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.

  • | | |

    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.

  • | | |

    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!

  • | | |

    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.