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    Was NY Gov. Cuomo’s Fast-Track Approval of Gas-Fired Plant Legal?

    In reading through the story we share below, we feel dirty. Like we need a shower. New York State is deeply, deeply corrupt–at the highest levels. As in Gov. Andrew Cuomo. And every now and again, that corruption spreads to otherwise good projects, like converting a small coal-fired electric plant to burn natural gas. The Greenidge Generation power station in Yates County, located along the shoreline of Seneca Lake in the beautiful Finger Lakes region of upstate NY, is one such a project caught in the web of Cuomo’s corruption. Originally built in the 1930s, the operator of the plant, Atlas Holdings, wanted to convert it from burning coal to burning natural gas. After paying $120,000 to Andrew Cuomo’s campaign for reelection and more than $500,000 in payments to lobbyists, Atlas got a “fast track” approval and certain environmental exemptions from the Cuomo Administration. It’s a worthy project and should have been approved without such payoffs, but the project couldn’t get approved otherwise. Here’s the sordid story.
    Read More “Was NY Gov. Cuomo’s Fast-Track Approval of Gas-Fired Plant Legal?”

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    Penn State Finds Chemical Clues to Marcellus Methane Migration

    Dr. Terry Engelder

    One of the ongoing issues used (misused) by those opposed to shale drilling is “methane migration”–the claim that drilling a shale well has led to, due to improper casing, widespread methane leaks getting into nearby water supplies. That was the claim made by Josh Fox in the fake documentary Gasland about Dimock, PA. The thing about methane migration is that most of the time it’s fixable. The other thing is that in a high number of cases, it’s not methane migrating from a shale well, but rather it’s naturally occurring leaks. Which makes sense. You drill shale wells where there’s a lot of methane! But how can you tell the difference between naturally occurring methane migration and methane migrating because of shale well activity? Some sharp researchers at Penn State University, including the “father of the Marcellus,” Dr. Terry Engelder, have just published a research study that can help.
    Read More “Penn State Finds Chemical Clues to Marcellus Methane Migration”

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    Ohio State Study Looks at 2 New Microbes in Shale Wells

    Marinobacter

    Over the past several years MDN has highlighted important research performed by Ohio State University with respect microbes (bacteria) living in shale wells. In a 2016 study, researchers dubbed a never-before-seen bacterial “lifeform” found in a Utica Shale well, Frackibacter. Having some fun, we labeled it a different name: Frackenstein (see Frackenstein! Researchers Find New Life Form in Fracked Utica Wells). The researchers kept at it and published another study along the same lines in 2017 (see Ohio State Research Finds Microbes in Utica Well May be Corrosive). Researchers said a different bacteria studied that appeared in multiple Utica wells (called Halanaerobium) may be a cause for concern, possibly corrosive to pipes and cement and toxic for workers. OSU researchers have kept at it and we now have a brand new study, titled “Members of Marinobacter and Arcobacter Influence System Biogeochemistry During Early Production of Hydraulically Fractured Natural Gas Wells in the Appalachian Basin” (full copy below). This time, several Utica and Marcellus wells were studied. What’s the upshot of this latest study?
    Read More “Ohio State Study Looks at 2 New Microbes in Shale Wells”

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    Dominion One Step Away from Closing on SCANA Merger

    In January Dominion Energy announced a deal to buy out and merge in South Carolina-based SCANA Corporation (see Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC). SCANA is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. In other words, the local electric and gas company for much of South Carolina. When Dominion’s Atlantic Coast Pipeline gets built and expanded into South Carolina, it will flow Marcellus/Utica gas to SCANA customers–an important and huge new market for our molecules. Hence our interest in this merger. Dominion announced yesterday that North Carolina has now signed off on the merger, and all that remains is one final regulatory approval. Dominion expects the merger to be done this year.
    Read More “Dominion One Step Away from Closing on SCANA Merger”

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    Roller Coaster Ride Continues – NatGas Price Spikes Up $0.43

    We’re not going to continue to cover news about the price of natural gas each day, because the price goes up, then it goes down, then it goes back up…you get the idea. We will, however, bring you one more story today on the price of natgas, because of the ongoing wild swings in price. The fact that prices goes up and down is not mysterious and frankly, not noteworthy. What is noteworthy is the sudden and dramatic swings–called volatility in the business. Last Wednesday the NYMEX futures price for gas hit a four-year high, up 18% in a single day (see Price of NatGas Spikes to Highest Level in 4 Years – $4.84/Mcf). The very next day the price crashed, down 20% in a single day from the previous day (see Wild Ride – Price of NatGas Crashes Day After it Spikes, Down 20%). The price stayed “low” relative to the previous high for a few days, then spiked up again yesterday, going up 9% to close at $4.70/Mcf. Arctic cold weather is hitting the northeast, combined with somewhat low storage levels, leading to a bump up in price. What lies ahead over the next few days and months? One analyst believes we’ll see prices close to or even above $5/Mcf–tomorrow.
    Read More “Roller Coaster Ride Continues – NatGas Price Spikes Up $0.43”

  • Painting with a Broad Brush re Post-Production Deductions

    Is the Marcellus/Utica industry giving itself a black eye with respect to post-production deductions? It’s always dangerous to paint with too broad of a brush. There are some drillers who don’t deduct post-production costs, and the landowners signed with them are happy as clams (we know some personally). But there are other drillers, perhaps under pressure by investors, perhaps from greed (as is said by those opposed to shale drilling) that are making profits on the backs of landowners. Regardless of motivation, it’s not right. The problem is, the media *does* paint with a broad brush and accuses the entire industry of behaving the same way. The following Charleston Gazette-Mail editorial is a perfect example.
    Read More “Painting with a Broad Brush re Post-Production Deductions”

  • Energy Stories of Interest: Tue, Nov 20, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Natural-gas pipeline protesters take petition to C&O headquarters; Summit County approves natural gas pipeline emergency fund; U.S. shale firms offer $100 million to aid Texas, New Mexico; Natural gas price explosion bankrupts traders; Freezing temperatures could heat up natural gas prices; Pipeline paralysis: The left’s latest fossil fuel obstruction tactic; No penalties for 90% of pipeline blasts; Firm proposes new wells as New Brunswick muses about end to fracking moratorium; The oil price is now controlled by just three men; Saudi Arabia and the future of oil prices: Look to what robots will do, not what Trump tweets.
    Read More “Energy Stories of Interest: Tue, Nov 20, 2018”

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    FERC Grants Favorable EIS to Jacksonville, FL LNG Export Facility

    Click for larger version

    Is there a connection between a new LNG export facility on the East Coast, all the way down in Jacksonville, Florida, and the Marcellus/Utica? Indeed there is! In January 2017, Eagle LNG filed an application with the Federal Energy Regulatory Commission (FERC) to build a new LNG export facility at a site on the St. Johns River in Jacksonville. The LNG produced at the facility will be transported to markets in the Caribbean and Latin America for power generation, and also delivered to local and regional markets, including marine bunkering and high horsepower applications–LNG used right here at home. Last Friday FERC issued a favorable draft environmental impact statement (DEIS) for the project, which means FERC plans to grant final approval. Below we connect the dots for how Marcellus/Utica gas will be some of the gas feeding this new plant.
    Read More “FERC Grants Favorable EIS to Jacksonville, FL LNG Export Facility”

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    Trump Plans to Nominate Andrew Wheeler as EPA Administrator

    Andrew Wheeler

    We admit that we are conflicted about Andrew Wheeler, the acting Administrator of the Environmental Protection Agency (EPA). On one hand he appears to be following President Trump’s lead and is working hard to roll back, defang, and otherwise file down some of the very sharp regulatory teeth added to the agency during the disastrous Obama years. Wheeler says he’s in the job to help President Trump and further Trump’s agenda at the agency. We believe him. On the other hand, Wheeler has worked in Washington pretty much his whole professional life, in and out of government, and is attempting to make peace with leftist Democrats who populate the rank and file workers at the EPA. That is, he’s attempting to placate swamp dwellers–instead of draining the stagnant swamp (i.e. firing them). That’s a mistake. A big mistake. Because those swamp dwellers will continue to undercut Wheeler at every turn. But Trump likes Wheeler and the job he’s done since the unceremonious exit of Scott Pruitt, hounded out by political enemies (like the Washington Post and Athens News). On Friday, Trump said he plans to nominate Wheeler to permanently take the position. Yes, we’re conflicted.
    Read More “Trump Plans to Nominate Andrew Wheeler as EPA Administrator”

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    Virginia Gov. Northam Replaces Regulators Before Compressor Vote

    There is a fascinating bit of politics playing out in Virginia. The state’s previous governor, Terry McAuliffe, favored pipeline projects like EQT’s Mountain Valley Pipeline (MVP) and Dominion’s Atlantic Coast Pipeline (ACP). What’s strange about McAuliffe’s support is that he’s a far-left Democrat. Yet he resisted calls from his nutroots base to shut both pipeline projects down. McAuliffe was replaced in January 2018 by Ralph Northam, another liberal Democrat (lib Dems get elected in Virginia because of a high population of libs who live around the D.C. area). Once again the nutters came out in force to pressure the new governor to oppose MVP and ACP. And once again, the new governor is not caving to the pressure. In fact, Gov. Northam has just canned two board members who voted to delay a vote on an ACP compressor station!
    Read More “Virginia Gov. Northam Replaces Regulators Before Compressor Vote”

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    Ohio EPA Considers Converting Class II Injection Wells to Class I

    Buckeye Brine, a relatively young Ohio-based company, owns and operates three shale wastewater injection wells in Coshocton County. Buckeye has operated their three Class II (as they are known) injection wells “flawlessly” for the past five years. No earthquakes. No spills. No leaks back to the surface. Nothing. Buckeye now wants to re-designate two of the three wells as Class I wells, which would allow them to accept non-shale wastewater–from industrial equipment operators, soap manufacturers, food processors, power plants, and municipal wastewater treatment plants. But antis are kicking up a fuss, claiming the change will pollute everything and everyone from here to Timbuktu. Fortunately state regulators are not swayed by such histrionics. The Ohio EPA is accepting public comments on the conversion until Nov. 26. There’s still time to write in and support the project!
    Read More “Ohio EPA Considers Converting Class II Injection Wells to Class I”

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    Massachusetts Antis Demand Gov Baker Block New NatGas Projects

    You know that new housing development that just sprung up in a Massachusetts city suburb? Don’t buy a house in it, because chances are they won’t be getting new natural gas pipes run to them any time soon. That is, if a group of local boards of health have anything to say about it. A group of 77 local boards recently sent a letter to Mass. Gov. Charlie Baker asking him to stop cold any new natural gas projects until after a full blown study is done on the “safety” of natural gas infrastructure. They’re attempting to use the Columbia Gas of Massachusetts tragedy north of Boston in mid-September to block new gas infrastructure (see Local NatGas Pipes Explode Near Boston Killing 1, Injuring 25). It’s a naked attempt to shut down new natgas pipelines–anywhere, for any reason. And that includes small delivery lines to local homes and businesses. Fascism raises its ugly head once again in the People’s Republic of Massachusetts.
    Read More “Massachusetts Antis Demand Gov Baker Block New NatGas Projects”

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    Cuomo Driving the Final Nail in the Coffin of NY’s Oil & Gas Industry

    Does the oil and gas industry in New York State even matter anymore? Well, yes, it does! It employs a number of people and produces oil and gas to feed our economy. Although Andrew Cuomo has single-handedly sentenced upstate residents to generational poverty by denying them the opportunity to allow shale drilling, there is a rich history of conventional drilling for oil and gas in the state. But now, even the conventional industry is under assault and attack by Cuomo and his lackeys at the Dept. of Environmental Conservation (DEC). How? The DEC has unveiled what IOGA of NY calls “devastating proposed air regulations”–regulations that will shut down many o&g operators in the Empire State. IOGA calls it a “regulatory assault.” We call New York State the Empire Crumbling State.

    [UPDATE: MDN, in an attempt to draw attention to this issue, a very important issue, may have left the wrong impression with our headline. The conventional oil and gas industry in NY is far from dead, and IS worth fighting for! Which is the purpose of this post: To encourage those who care to fight. To make your voice heard in letting the DEC know their latest rules will harm an important industry/sector of NY, without actually improving the environment.]
    Read More “Cuomo Driving the Final Nail in the Coffin of NY’s Oil & Gas Industry”

  • Calendar of Marcellus/Utica Events for Nov 19, 2018 – Feb 18, 2019

    Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events. To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address.
    Read More “Calendar of Marcellus/Utica Events for Nov 19, 2018 – Feb 18, 2019”

  • Energy Stories of Interest: Mon, Nov 19, 2018

    The “best of the rest”–stories that caught MDN’s eye that you may be interested in reading: Sunoco responds to questions about safety for Mariner East 2; PA Game Commission accepting comments on proposal to list 3 bat species as endangered; ND oil, gas industry breaks ‘virtually every record’ in latest report; U.S. Sen. Elizabeth “Pocahontas” Warren to host hearing to roast Columbia Gas re tragedy; NYMEX December natural gas contract bounces back 23.4 cents to settle at $4.272/MMBtu; Natural gas: Another alternative auto fuel; Big Oil’s shale revival prompts industry doubts: Fuel for thought; GECF secretary general predicts growth in natural gas; China guarantees natural gas supply to avoid winter shortages; China’s ‘truce deal’ includes offer to buy more US natural gas, improve IPR protection.
    Read More “Energy Stories of Interest: Mon, Nov 19, 2018”

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    Is Shell Pulling Out of Pennsylvania Marcellus?

    Is Shell (or SWEPI, formerly known as Shell Western E&P Inc.) leaving its Pennsylvania Marcellus drilling program behind? You may recall we posted a story in June quoting Tonya Williams, general manager for Appalachia with Shell, as stating (during her talk at the DUG East event in Pittsburgh) that Shell plans to spend $150 million to drill wells on four pads in 2018, all of it in Tioga County (see Shell Focused on Single PA County, No New Drilling in Other Areas). Although Shell has wells and acreage in 10 Pennsylvania counties, Tioga is the focus for this year. Barley two months later, in early August, MDN received a note from a trusted reader saying that Shell is pulling out, ending its Marcellus program and sending their personnel to Texas. Frankly, we were skeptical.
    Read More “Is Shell Pulling Out of Pennsylvania Marcellus?”