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| Shale Gas News February 22 2012 |
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| Shale Gas News February 22 2012 | |
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 GAS FRACKING BAN IN UPSTATE N.Y. UPHELD BY STATE COURT JUDGE February 22, 2012 - A central New York town can block natural-gas drilling after a state judge, in the first test of local laws, upheld the Town of Dryden’s ban on hydraulic fracturing. “I think you’d call this a pretty substantial victory,” Mahlon Perkins, attorney for Dryden, said yesterday. “The pertinent part of it is, he declared that the zoning amendment as slightly modified is not pre-empted by state law.” New York placed a moratorium on the drilling process known as hydraulic fracturing in 2010 while state regulators developed environmental rules. Since then, about 20 towns in the state have adopted laws to ban drilling, Karen Edelstein, a geographic information-systems consultant in Ithaca, said.
CONTINUATION OF 2-MONTH February 22, 2012 - A spokesman for the state Department of Environmental Protection said Tuesday a spill at a gas well site in Robinson Township is likely "a continuation" of a leak first reported in December. Poister could not say if there would be any notice of violation or fine until the investigation is completed. John Poister, spokesman for DEP's Southwest regional office, said the agency first learned of a leak from an underground line to a condensate tank at the Chevron-Appalachia well site Dec. 20. Poister said at this point in the investigation, it appears there was no second spill but only workers cleaning up from that December leak. The soil is being removed and placed in Dumpsters to be taken off-site.
PIPING MARCELLUS SHALE February 22, 2012 - Cabot Oil & Gas Corp. and Williams Partners LP will join forces on a new pipeline to move at least 500 million cubic feet of natural gas a day from Pennsylvania to higher-priced markets in New York and New England. Williams will own 75 percent of the Constitution pipeline system, scheduled to begin operating in March 2015, according to a statement Tuesday. The pipeline will carry gas from Houston-based Cabot's production in the Marcellus shale of Susquehanna County to pipelines in Schoharie County, New York.
BENTONITE RELEASE FROM February 22, 2012 - Keystone Midstream Services LLC did have an "inadvertent surface release" from its pipeline installation along Crab Run Road in Lancaster on Feb. 14, said Michael Brinkmeyer, the company's general manager. The release contained water and the drilling clay bentonite. Though bentonite is only considered a mild pollutant, any release of mud or sediment into streams is prohibited by state law because it could harm stream beds and bury aquatic creatures or their eggs, said Tom Tarkowski, assistant regional supervisor for the Commission in Meadville. The baseline fine for that type of pollution ranges from $250 to $5,000.
WYOMING COUNTY, PA. TO February 22, 2012 - The commissioners approved the advertisement of a model ordinance regarding the impact fee during a commissioners meeting. The fee could be adopted on March 20. "By the time all of the off-the-top money is distributed, I will be surprised if our county will receive even 50 percent," said Solicitor James Davis. The Public Utility Commission will collect the impact fee revenue and distribute the money, with 60 percent going to local governments covered under an impact fee ordinance and 40 percent for statewide uses, including Growing Greener, acid mine cleanup, affordable housing needs and rail freight assistance. Shale Gas News February 21 2012
STUDY: DIRTY AIR IN ERIE, February 21, 2012 - A study showing that Erie exceeds Houston and Los Angeles in the levels of certain air pollutants commonly connected to oil and gas activity became a point of concern for several trustees Tuesday night during a meeting held to formulate local rules for resource extraction. Steven Brown, a NOAA scientist in Boulder, told the trustees and a roomful of industry experts that an air monitoring study conducted in Erie last winter revealed that levels of butane, ethane and propane -- compounds associated with oil and gas drilling and production -- were "large." A group of residents, who have formed under the banner Erie Rising, have complained for months that all the nearby gas drilling activity -- and the emissions it produces -- is causing people to come down with cases of asthma, gastrointestinal illness and worse. HIGH
SUPPLIES, WEATHER DRIVE February 21, 2012 - Front-month U.S. natural gas futures ended lower on Tuesday as mild U.S. weather this week and record-high supplies weighed on prices despite the recent decline in drilling that could finally slow record production. Planned output cuts by several key producers and recent declines in the gas drilling rig count to a 28-month low helped drive gas prices up 8 percent last week. But with production still running at or near all-time highs and inventories likely to end winter at a record high, most traders remained skeptical of any upside without much-colder late-winter weather to kick up heating demand. N.Y.
JUDGE RULES TOWN February 21, 2012 - In a victory for opponents of the drilling process known as hydrofracking, a New York State judge ruled on Tuesday that the upstate town of Dryden in Tompkins County can ban natural gas drilling within its boundaries. A month after the ban’s passage, Anschutz Exploration Corporation, a Colorado driller with 22,200 acres under lease in the town, filed a lawsuit arguing that the town’s authority did not extend to regulating or prohibiting gas drilling. In a decision issued on Tuesday, Justice Phillip R. Rumsey of State Supreme Court said that state law does not preclude a municipality from using its power to regulate land use to ban oil and natural gas production. The ruling is the first in New York to affirm local powers in the controversy over drilling in the Marcellus Shale. FOUR
YEARS AGO: ‘DRILL BABY DRILL’ February 21, 2012 - In Allegheny County, township supervisors are waiting to join with others to challenge the legislation. Brian Coppola, Robinson Twp. Supervisor, quickly points out that the township is not opposed to the impact fee itself, but other parts of the legislation. 500 feet setback between home and gas well: The legislation mandates that township supervisors cannot zone against this. The legislation gives a mandatory waiver. “The wells can be 50 feet away from your house under this legislation,” said Coppola. Compressor stations: There are no rules mandating where compressor stations can now be built. The township cannot zone where they can be placed. Seismic testing: Coppola said the township had an ordinance that allowed seismic testing but regulated who could do it, where it could be completed and a bond that went with it. Seismic testing is now allowed in all areas and it has no regulation, under the new legislation. GRAY WATER DISCHARGE PROBED NEAR BUTLER COUNTY, PA. WELL February 21, 2012 - Police and a Butler County hazardous materials team visited a gas industry site in Lancaster on Monday after gray, muddy water that pooled among sandbags and hay bales along Crab Run Road prompted at least one call to 911. Gas drillers are putting pipeline under the road, and have a state permit and a system to control water, said Michael Brinkmeyer, general manager at Keystone Midstream Services LLC, which owns the pipeline system that conveys gas from many Butler County wells. The operation has lasted three to four weeks, with vacuum trucks gathering water from a ditch on the east side of the road.
WASTEWATER A KEY ISSUE February 21, 2012 - One of the most contentious issues in the debate over shale gas drilling in New York's share of the Marcellus Shale region - how to handle millions of gallons of contaminated wastewater - remains unsettled. The water that flows from active gas wells is contaminated with traces of chemicals used in drilling and fracking, which breaks up the shale to release natural gas. Many of the chemicals are known or probable carcinogens. The flowback water also brings up such naturally occurring contaminants as barium, strontium and radium. In Pennsylvania, researchers have found increased levels of bromide in rivers used for gas wastewater disposal. Bromide, when combined with chlorine in municipal drinking water supplies, produces trihalomethanes, which have been linked in some studies to increased human cancer rates after years of exposure.
FIRST-EVER SHALE February 21, 2012 - Washington County has about 700 Marcellus Shale gas wells -- more than any other county in S.W. Pennsylvania -- and at least a dozen compressor stations, which pump natural gas through pipelines. Health impacts can occur from spills that contaminate streams or water sources, or air pollution from drill rigs, holding tanks, compressor stations and diesel truck traffic. Those impacts can include stomachaches and headaches, nosebleeds and cognitive difficulties, as well as stress-related disorders, said Dr. Leslie Walleigh. "We would expect, based on predictable exposures, that some individuals will experience respiratory symptoms, with worsening of underlying asthma and other lung diseases, and possibly the new onset of asthma. We also expect to see conditions related to the emotional and psychological stress resulting from the personal, family and community life disruption stemming from the shale gas activities." Story SW Pennsylvania Environmental Health Project CALL
TO HALT FRACKING IN February 21, 2012 – With drought officially declared in the South East and with the prospect of hosepipe bans looming, campaigners say any prospect of fracking should be halted. To highlight their opposition, anti-fracking campaigners gathered at Ardingly reservoir in West Sussex, one of the region's worst affected reservoirs, with its water levels at around two-fifths of what it should be. Keith Taylor, the Green MEP for the South East, said: "Given the announcement of drought in the region, it's vital that we do not put our limited water supplies at risk. In America, the commercial use of fracking to extract shale gas has led to concerns about water contamination and some people have needed to boil their water before drinking. DEP
INVESTIGATING SPILL NEAR February 21, 2012 - Department of Environmental Protection crews are working to learn more about the cause and source of a gas spill at a well in Robinson, Washington County. A township employee discovered the spill along Bigger Road on Thursday, prompting DEP to investigate. It is unknown whether the leak of condensate, known as "wet natural gas in the soil," made its way into nearby Bigger Run Creek, said John Poister, DEP spokesman. But a spokesman for Chevron-Appalachia, which owns the well, said that the gas in question is from a Dec. 19 spill and that it did not reach the creek. Crews are removing soil from the area, Poister said. "We don't know if this is another leak or a continuation of the other leak," he said. OIL
PROFITS SLIDE FASTEST SINCE February 21, 2012 - Profits for the biggest U.S. energy producers including Exxon Mobil Corp. are poised to decline the most since the financial meltdown of 2008-09 as the drilling technique known as fracking collapses natural gas prices. Exxon and Chesapeake Energy Corp., which today reports 2011 earnings, will see net income in 2012 slide about 8 percent and 10 percent, respectively, according to the mean of analyst estimates compiled by Bloomberg. That would be the biggest drop since 2009 for the companies, the largest U.S. gas producers. Shale Gas News February 20 2012 PA.
FARMER BLOCKS February 20, 2012 - Mike Bennett got fed up with the big well drilling trucks from a nearby well on Spring Road coming down his road to take a shortcut. The road was not bonded by Henderson Township supervisors for truck traffic from this well, yet the drilling company was using it anyway, despite Mike having asked them to go the way they are supposed to go. So Mike Bennett took his white pickup truck and parked it in the middle of the road; and then he called the State Troopers and the township supervisors to come sort things out. It caused quite a traffic tie-up of big drilling trucks as you can see. I hope that his action will lead to the company being properly fined for improper use of the road. N.Y.
PROSTITUTION LINKED February 20, 2012 - The natural gas boom apparently has brought an unwelcome corollary business to the area -- prostitution. Police over the weekend arrested three women at motels in Horseheads and charged them with prostitution following an undercover investigation. "One of the prostitutes we interviewed said a significant portion of her clientele works for the gas industry," Horseheads police Sgt. David Murray said. Prostitution often brings with it related crimes such as the use and sale of drugs, robbery and assault, police said. U.S.
IN ACCORD WITH February 20, 2012 - The United States and Mexico reached agreement on Monday on regulating oil and gas development along their maritime border in the Gulf of Mexico, ending years of negotiations and potentially opening more than a million acres to deepwater drilling. The agreement, if ratified by Mexican and American lawmakers, would for the first time provide for joint inspection of the two countries’ rigs in the gulf. Until now, neither was authorized to oversee the environmental and safety practices of the other, even though oil spills do not respect international borders. POLITICS, RESIGNATIONS ADD WRINKLE TO PITTSBURGH AREA DEP OFFICE February 20, 2012 - It's been a rough six months for attorneys at the state DEP’s regional office in Pittsburgh. The Corbett administration forced one longtime legal leader to resign, and its appointment of a replacement was thwarted by federal conflict-of-interest rules. The DEP has 70 lawyers statewide. Tim Potts said the Corbett administration's attempt to politicize the chief counsel's job by appointing Mr. Darr is a disservice to Pennsylvanians who expect unbiased enforcement of public health and environmental regulations. "The law should be the law. When you substitute political connections for legal and policy expertise, you're inviting trouble," Mr. Potts said. OHIO RESIDENTS LOOK TO BAN FRACKING February 20, 2012 - Beaver Township residents concerned about fracture drilling and injection wells in Ohio have enlisted the aid of a Pennsylvania-based organization to ban the activities in the area. The Beaver Township CELDF Group is working with the Community Environmental Legal Defense Fund to develop a community rights resolution to ban fracking and injection well deposits in the township. Signatures for a petition supporting the resolution will be collected prior to the Sierra Club's showing of the gas drilling documentary "Gasland" at 6 p.m. Wednesday at the old South Range High School, 11836 South Ave., North Lima. The residents are responding to the Class II injection well on state Route 7 in North Lima which will be used to deposit potentially hazardous material created during the fracking process at drill sites in western Pennsylvania. NEW ZEALAND DISTRICT COUNCIL WANTS MORATORIUM ON FRACKING February 20, 2012 - Kaikoura District Council has called for an urgent moratorium on fracking. On Wednesday the council became the third local body to call for an urgent moratorium on fracking. The council also voted for an immediate stop to offshore oil drilling and will put its views in writing to Energy and Resources Minister Phil Heatley. The Christchurch City and Selwyn District councils also want fracking halted. However as the pressure grows for an immediate halt to fracking in New Zealand, the Government says it isn't "aware of any reason" to stop the controversial oil exploration technique. Other councils are also considering their response to the practice. Gisborne district councillor Manu Caddie wants his local body, which is considering drilling consents from a Canadian joint-venture, to follow suit.
DRILLERS HOPE TO END STRING February 20, 2012 - One explosion occurred in June 2010 when workers at an AB Resources well site hit a "shallow pocket" of methane gas a little more than 1,000 feet below the ground. In addition to injuring several workers, this ignited a large fireball that burned for days. The other explosion took place at a site operated by Chesapeake Energy, currently the most active driller in northern West Virginia and eastern Ohio. For this fire, the West Virginia DEP cited Chesapeake for "failing to prevent the release of natural gas and the potential pollution of waters of the state." Smaller fires and leaks throughout Marshall County on sites operated by Gastar Exploration and Trans Energy Inc. have also taken place, while traffic accidents related to drilling continue. Other problems include allegedly unauthorized stream fillings by Chesapeake and alleged water pollution by natural gas processor Caiman Energy.
WAYNE NEW YORK February 20, 2012 - The Town of Wayne officially enacted a moratorium on natural gas drilling Tuesday night, becoming the first municipality in Steuben County to pass a temporary ban on the process known as hydrofracturing. Wayne Town Supervisor Steve Butchko said the Town Board unanimously passed a one-year moratorium on drilling – commonly known as fracking. Butchko said Wayne’s location is unique in the county, since it is located between Keuka and Waneta lakes. The lakes are fed by two separate sources, with Keuka Lake’s source the St. Lawrence Seaway and Waneta Lake in the Susquehanna River Basin. The two lakes and other geological differences in the town mean drafting new land use regulations is essential, Butchko said. COLORADO CHEF COOKING-UP OPPOSITION TO ‘BREAD BASKET’ DRILLING February 20, 2012 - The co-owner and chef of one of Aspen’s high-end restaurants said he is concerned that potential gas drilling in the Paonia area will endanger farms that produce key items for his menu. The Bureau of Land Management (BLM) has mineral rights on about 30,000 acres in the region and is considering auctioning off leases on some of its property to an energy firm for natural gas development. Deane said some parcels of land the BLM is offering for gas leasing would directly affect her family’s property, where they raise organic, all-grass-fed beef. A company also could set up drilling rigs along the main irrigation ditch that serves the North Fork Valley, which has the nation’s highest concentration of organic farms, she said. To drill in the “bread basket” that produces so much food for the Roaring Fork Valley would be unfortunate, she said. Shale Gas News February 19 2012 AS PA. GAS DRILLING BOOM SLOWS, WORRY SETS IN February 19, 2012 - Chesapeake Energy Corp., announced in January it would reduce its rig count in the region, from 75 to 24, drilling fewer new wells and reducing the flow from existing wells. Bradford County has already seen active rigs decline from 27 to 20 as of Feb. 10 as rock-bottom natural-gas prices prodded the company to drive for more lucrative fuels from the earth, such as "wet gas" from western Pennsylvania or oil from other parts of the country. "The pace won't return to what it was until we see stronger natural gas prices and that's not happening anytime soon," said Steven Schork, of the Schork Report, an energy markets newsletter. "We are in a long-term structural down market that's going to last at least two more years."
CRACKER JOBS February 19, 2012 - If built in Allegheny County, an Equistar plant would become the largest source of volatile organic compounds -- carbon-based chemicals that form smog -- producing 60 percent more than U.S. Steel's Clairton coke plant, according to county data. It would be the fifth-largest nitrogen oxide polluter, ranking between U.S. Steel's Irvin steel finishing plant in West Mifflin and the Edgar Thomson steelmaking plant in Braddock. That would be like adding 20,000 cars to the road, said Jim Thompson, the county's air program manager. "Depending on where these facilities locate, that might be an area where people don't want to go hunting and fishing anymore, because it changes the character of it. Or you might have people who miss more days of work or die earlier," said Joe Osborne, legal director of the Group Against Smog and Pollution. "Anyone who wants to say, 'X number of jobs is what it brings, and that's the end of the analysis,' well, there's a much greater impact than that."
CREWS CONTINUE CLEAN-UP PREP February 19, 2012 - Alaska environmental regulators say cleanup preparations continue at the site of an exploratory well blowout on Alaska’s North Slope. The state Department of Environmental Conservation says crews Sunday began clearing ice and drilling fluid from the drill floor area. A crew drilling on a lease held by Repsol E&P USA Inc. penetrated a pressurized pocket of natural gas at 2,523 feet Wednesday. The resulting kickback spewed out natural gas and an estimated 42,000 gallons of freshwater-based drilling fluid — also known as drilling mud — onto three acres. OHIO
CONSERVANCY DISTRICT February 19, 2012 - A Muskingum watershed official said leases that would allow hydraulic fracturing at Clendening and Leesville lakes will include safeguards ensuring companies involved in oil and gas production act responsibly. A lease signed in June 2011 allowing Gulfport Energy rights to drill horizontal wells near Clendening Reservoir, south of New Philadelphia. The district also has begun negotiating toward a lease at Leesville Lake in Carroll County. The conservancy district board also has been contemplating supplying water to the oil and gas exploration and production industry. The conservancy district runs from the Black Fork River system in Richland County to the Muskingum River system near Marietta, with 12 lakes and 14 dams under its control. It was created in 1933 with a mission of flood reduction, recreation and conservation.
CHESAPEAKE AND PROFESSOR AT ODDS: February 19, 2012 - Chesapeake Energy is applying for a permit from the West Virginia DEP to release certain amounts of chemicals - including formaldehyde, benzene, and nitrogen oxides - into the air from the Roy Ferrell drilling pad between I-70 and Dallas, W.Va. If the permit is approved, Chesapeake would not emit the chemicals via a visible flame, or flare. Wheeling Jesuit University biology professor Ben Stout wants to "get some science involved" in regulating the activity. "Somebody just the other day asked me if they should move. I told them to wait, but we can't wait forever. We need to get a handle on this now." The DEP's Division of Air Quality will accept written comments regarding the air quality permit application until March 13 at 601 57th St., S.E.; Charleston, WV 25304. Call 304-926-0499 for more information.
FRACKING DEBATE DIVIDES February 19, 2012 - As New York prepares to lift a moratorium on new permits for hydraulic fracturing — which carries environmental risks — landowners are debating whether to lease mineral rights to extraction companies. Jack, 61, favors leasing, convinced that a tough contract could protect the water while delivering thousands of dollars in royalties to keep the family's farms afloat in these difficult economic times. Pete, 67, opposes leasing his land and the property the brothers jointly own. He worries that he would lose control over his pastures to a big corporation and that the drilling process could ruin the water. "Once you lease the land, they can do what they want on it. They can drill wherever they want," he said. "It's about the future. It's the landscape. It's the Catskills." Shale Gas News February 18 2012 HEAD
OF O&G COMMISSION February 18, 2012 - The business dealings of a member of an Ohio commission that decides oil- and gas-drilling complaints has spurred complaints from environmental advocates as well as a state ethics inquiry. Robert Chase works as a consultant for landowner groups that negotiate terms and payments for the mineral-rights leases. When the deals are struck, he gets a percentage of what the companies pay the landowners. Jack Shaner of the Ohio Environmental Council said Chase is more a representative of industry than the public. The committee’s other members include two oil-industry reps, a geologist and an oil and gas attorney. “This thing sounds way too cozy,” Shaner said. SECOND CHEVRON GAS WELL SPILL AT SITE IN 3 MONTHS February 18, 2012 – An unknown amount of condensate was released into the soil and ran down a hill into the creek. Condensate is a liquid byproduct of gas drilling. A cleanup crew was on site Friday and placing absorbent material in the creek. This is the second spill at the site. The first occurred in December. A violation notice was not issued to Chevron. "This is the problem with the state watching this industry: they are not following it," Coppola said. Coppola and other officials at Robinson Township have been outspoken in their criticism of the new state impact fee bill which stripped municipalities of some local zoning and oversight of the gas industry. WASHINGTON & GREENE COUNTIES LEAD PA. MARCELLUS GAS INCREASE February 18, 2012 - Shale gas production in Pennsylvania continued to increase in the second half of last year, as drillers brought more than 500 new wells online and boosted output more than 40 percent compared to the previous six months. Data released on Friday by the Department of Environmental Protection show the southwestern counties of Greene and Washington climbed to third and fourth place in gas produced from the Marcellus Shale, surging ahead of Tioga County in the northeast. The northern tier county of Bradford continued to yield the most natural gas, followed by neighboring Susquehanna County. PA.
TOWNSHIP RETHINKS February 18, 2012 - A former code enforcement officer was rehired by the Independence Township Board of Supervisors Wednesday night for fear the current code enforcement and zoning officer could have a conflict of interest in giving out permits for the oil and gas industry. At last month's meeting, supervisors had voted to hire William Touey as the township's zoning and code enforcement officer. However, it was decided that Touey could have a problem since he is employed by MarkWest, which processes natural gas for Range Resources. Supervisor Melinda Latynski told the board she had contacted the Pennsylvania State Association of Township Supervisors about the matter and believed it was a conflict of interest for Touey. 78
MILLION GALLONS OF DRILLING February 18, 2012 – In last six months of 2010 shale drillers sent about 118 million gallons to numerous treatment plants that discharge into rivers and streams. Those discharges raised alarms when the plants reported soaring levels of bromides in rivers that year. Though not considered a pollutant by themselves, the bromides combine with the chlorine used in water treatment to produce trihalomethanes, which can cause cancer if ingested over a long period of time. An AP analysis of the new state data found that about 1.86 million barrels, or about 78 million gallons, of drilling wastewater from non-Marcellus shale wells were still being sent to treatment plants that discharge into rivers in the second half of 2011.
PRODUCTION AND WASTE REPORTS February 18, 2012 - The state's Marcellus wells also produced 10 million barrels of wastewater during the last six months of 2011, about 500,000 barrels more than the amount produced during the first half of the year. A barrel is equal to 42 gallons. More than three-quarters of the liquid waste - which includes both fluids from the drilling process and the salt- and metals-laden liquid that returns from a well after hydraulic fracturing - was either directly reused in new wells or taken to treatment plants that recycle it. The rock waste, or cuttings, from wells drilled during the last half of 2011 totaled 385,000 tons. Shale Gas News February 17 2012 TOWNSHIP OFFICIALS TRY TO CURTAIL PUBLIC SPEECH AT MEETINGS February 17, 2012 - Montrose Borough Council members are apparently uncomfortable with coverage, aided by cameras and tape recorders as allowed by law. On February 8, after citizen reporter Vera Scoggins came to a council meeting with a video recorder, all the council members abruptly got up and left, refusing to answer questions from the press or anybody else in attendance. On Tuesday, things got more bizarre. Without opportunity for public comment, as required by law, the council passed a ‘code of conduct’ measure to restrict comments and the use of cameras and recording devices during meetings. Apparently the role of a free press in government affairs is not something these public officials are comfortable with.
ENCANA SLASHES February 17, 2012 - Canadian giant Encana said on Friday it will immediately cut some North American natural gas output and slash spending on pure gas plays due to decade-low prices, becoming the second major producer to shutter production as profit margins narrow. To counter a huge American supply glut, Canada's largest natural gas producer will shut in 250 million cubic feet per day of gas production instantly, as it shears spending on dry gas fields and focuses drilling in more lucrative oil-based liquids plays. The cuts are the first part of a move to reduce production by up to 20% by the end of the year.
MOVING DRILLING ONTO MY February 17, 2012 - We own about 20 acres where we plan to build a vacation/retirement home. Fracking companies have started drilling nearby for oil and gas. As ardent environmentalists, we are opposed to this activity, but that hasn’t stopped the company, and it won’t protect us from any resulting environmental damage. Now the company has offered to pay us to remove the gas/oil under our property without actually drilling on our property. The money would be a nice addition to our building fund. But feeling as we do about fracking, is it ethical for us to say yes?
TIOGA LAWSUIT COULD SET February 17, 2012 - A federal lawsuit filed by Tioga County landowners may set the pace in a statewide legal scrum over the ability of energy companies to forcibly extend their leases. Denver-based Inflection Energy, one of the most active energy companies in the Southern Tier, is facing a federal lawsuit filed by 18 landowners, representing about 1,200 acres, whose leases were forcibly extended through "force majeure" claims. Many of the landowners are locked into leases that pay as low as $2 per acre per year, but aren't seeking monetary compensation, according to Robert Jones, an attorney for Binghamton-based Coughlin & Gerhart. Force majeure clauses, included in most oil and gas leases, allow a company to extend the length of the lease in the case of an unforeseen event that hinders the terms of the contract. AS NATURAL GAS WILD WAYS RETURN, FUNDS FAIL TO THRIVE February 17, 2012 - Natural gas has historically been more volatile than many energy commodities as it a smaller, U.S.-confined market compared to a global play like crude oil. Unlike oil or gold, where big macro-funds are active players, natural gas has tended to attract only a handful of specialized fund managers. Last year, gas was also one of the worst performing commodities, with prices falling more than a third while a few top funds in the business posted some of the largest gains across the hedge fund universe. That decline accelerated in January, when traders also saw a return to the kind of gyrations that were common in the years prior to 2008. PA.
DEP INVESTIGATING February 17, 2012 - A spill of what appears to be condensate at a gas well site owned by Chevron-Appalachia site in Robinson Township was being investigated Friday by the state Department of Environmental Protection. Robinson Township Supervisor Brian Coppola said the spill at the site at 8400 Noblestown Road was discovered Thursday by a township employee and DEP was notified. The material had run into Bigger Run Creek, which Coppola said feeds into Raccoon Creek. He expressed concern about the number of residents who have private water wells in that area.
DRILLING WASTEWATER STILL February 17, 2012 - Experts are wondering if a loophole in disposal regulations is still allowing significant quantities of one of the worrisome compounds— salty bromides— into rivers and streams, or if shale gas drillers were only part of the problem. The new mystery is this: why hasn't the dramatic progress on the wastewater recycling led to equally clear declines in river bromide levels? An AP analysis of the new state data found that about 78 million gallons of drilling wastewater from non-Marcellus wells were still being sent to treatment plants that discharge into rivers in the second half of 2011. "They ought to get all of that out of the water. It's obviously hazardous, it presents a public health hazard. What's good for the Marcellus wells should be applied to the other wells, too," said Jan Jarrett of PennFuture. PA. SEN. SOLOBAY ‘SELL OUT’ SPARKS PROTEST February 17, 2012 - Sharp chants decrying state Sen. Tim Solobay's yes vote on gas impact fee legislation accompanied Perry Como's smooth croon outside the Canonsburg Borough building Thursday. "Solobay sold us out," about a dozen protesters shouted. Jacie Carter argued lawmakers didn't do enough to ensure that gas well-related activities will take place at a safe distance. "When deliberating a distance of placement of their compressor stations from our children's classrooms, protecting the rights and safety of your most humblest of constituents in Washington and Greene counties should be your priority, not the protection of your Southpointe constituents' bank accounts," she said. PA.
TOWN COUNCILS BEGIN TO DEAL 25
STATE TROOPERS REASSIGNED February 17, 2012 - Twenty-five state troopers have been reassigned to duty in the Marcellus Shale drilling region in Northeast Pennsylvania over the past two years in response to population growth and a corresponding increase in incidents, State Police Commissioner Frank Noonan told a Senate panel Thursday. The troopers were transferred from other parts of the state and assigned to Troop P in Wyoming, Troop R in Dunmore and Troop F in Montoursville, said deputy commissioner Lt. Col. George Bivens. Mr. Noonan plans to close two central dispatching centers to put 100 troopers back on patrol.
FRACKING BIDS ARE February 17, 2012 - applications to explore for shale gas in the Karoo using fracking are “fatally flawed”, says the Treasure the Karoo Action Group. This is because the public participation process that each of the companies followed was inadequate, the anti-fracking group’s chairman, Jonathan Deal, told Cape Town Press Club yesterday. “Our government has failed in its responsibility to ensure that the citizens are told about fracking truthfully and accurately… There are hundreds of thousands of people who know nothing about this,” he said. But it was not the action group’s responsibility to inform people. “A matter of this magnitude and scale is the duty of government – it’s their critical duty to ensure that everyone is informed.”
FLORIDA COULD ALLOW O&G February 17, 2012 - Florida could soon allow oil and gas drilling in state parks. Sen. Greg Evers of Baker is sponsoring a Senate bill that passed through a committee this week, and Rep. Clay Ford has a similar measure in the House that is in committee. Ford, however, has amended his bill to specify the oil and gas drilling would take place only in Northwest Florida after concerns were raised over the Everglades. The bills would allow the state to enter into partnerships with private companies to develop oil and natural gas resources on onshore state parks. Shale Gas News February 16 2012 NEW PA. SHALE BILL VIOLATES MEDICAL ETHICS February 16, 2012 - Public health professionals say the impact fee law signed by Governor Corbett this week could hurt the delivery of health services to injured workers or residents living near gas drilling sites. The legislation allows drillers to withhold information on the chemicals used to frack natural gas wells if the company deems them proprietary, or a trade secret. This would include the chemical’s identity and the concentration level. A provision does allow health providers access to the information in order to treat a patient, but requires the healthcare worker to sign a confidentiality agreement, that obligates the medical professional to use the information only to treat an individual patient. Dr. Jerome Paulson, Professor of Pediatrics & Public Health at George Washington University, says the law runs counter to medical ethics.
C.A.C. FINDS THAT PA. DEP IS FAILING February 16, 2012 - Today the Clean Air Council submitted a petition to the U.S. Environmental Protection Agency (EPA) Administrator Lisa Jackson asking her to make findings that the Pennsylvania Department of Environmental Protection (PA DEP) is failing to implement crucial parts of the Clean Air Act (CAA) and its own state air plan when permitting Marcellus Shale operations and to apply sanctions over these failures. The Council’s petition explains that in 2011 alone the Council reviewed well over twenty proposed permits and found either no aggregation analysis or a failure to properly aggregate. “When performed, single source determinations for the Marcellus Shale industry in Pennsylvania have been incomplete and inconsistent at best and contrary to the CAA and Pennsylvania [State Implementation Plan] at worst,” states the Clean Air Council Executive Director. FEDERAL RULES TO DISCLOSE FRACKING CHEMICALS COULD COME WITH EXCEPTIONS February 16, 2012 – So far, Colorado is the only state that requires such detailed information for all chemicals; eight other states with fracking disclosure rules either do not require companies to report concentrations or only require them to report concentrations of hazardous materials. The BLM's rules also would compel companies to report the total volume of fracking fluid used, as well as how they intend to recover and dispose of it. Though the BLM's proposed rules are more stringent than most state laws, environmental and health advocates say drillers could circumvent some of the requirements. For instance, the rules would only apply to drilling on federal lands. Also, companies could request that certain chemicals be exempted from disclosure if they are deemed a "trade secret." OHIO
COUNTY NEGOTIATING February 16, 2012 - Mahoning County officials said they are negotiating with a company that wants to build a frack water recycling facility in the county. They won't release any details yet, but officials said the facility would be a significant investment in the area. The Mahoning County sanitary engineer said his department is working out a deal to sell water to the company, which will recycle frack water used to drill Marcellus and Utica shale. "One individual frack takes in the order of 10 million gallons of water, and that water must be supplied and treated afterward," said Mahoning County Sanitary Engineer Robert Lyden. "So there is going to be a gigantic market for this frack water to be treated. We'll be selling water to them to blend with the affluent from their treatment facility so that this water could go back to the frack process and not be discharged anywhere," said Lyden. PA.
OFFICIALS RECOIL AT February 16, 2012 - We need to elect better poker players to represent us in Harrisburg. Pennsylvanians have been sitting on an unbelievable hand: the largest natural gas field outside of Iran, located a half-continent closer to the vast East Coast markets than the traditional drilling states. The industry has boomed under the current zoning laws. America's Largest Full-Time State Legislature and our governor nonetheless joined forces recently to give us a new law that takes away local governments' ability to restrict drilling in residential areas. Critics say this "industry bill'' includes language that seems to keep drilling away from homes and other buildings, but that a driller could drive a truck through the loopholes. US MULLS WHETHER TO OKAY LNG EXPORTS February 16, 2012 - The U.S. Energy Department will not make a decision on future liquefied natural gas exports until it has weighed the potential consequences of sending U.S. gas abroad. Energy Secretary Steven Chu said there was concern that exporting the nation's surplus natural gas could lead to higher prices, but that had to be balanced against the economic benefits of increasing the U.S. exports. The Energy Department has approved one export application from Cheniere Energy for its Sabine Pass terminal, and other companies including Southern, BG, Dominion and Sempra have also requested permission. The department is conducting a study due out later in the Spring that would analyze the economic effects of allowing more exports. Still, Senator Ron Wyden, a Democrat from Oregon, raised concerns that Chu had already decided to approve more exports.
NATURAL GAS WELLS February 16, 2012 – Wells that pump natural gas from the ground in Colorado have leaked about twice as much gas into the atmosphere as previously thought, a new study finds. That could tarnish gas’s image as clean source of energy. Natural gas, made mostly of methane, does give off less carbon dioxide than coal when burned. But methane itself strongly warms the atmosphere, which means even relatively small releases can have a big impact on the climate.
RELIANCE SHUTS SIXTH WELL February 16, 2012 – India's Reliance Industries has shut a sixth well at its gas fields in the D6 block, off the country's east coast, due to water ingress. The sixth well was shut last week, the source with direct knowledge of the development, said. Reliance had earlier shut five of 18 producing wells at D1 and D3 gas fields until December. Canadian oil and gas producer Niko Resources Ltd, which holds 10% in the Reliance-operated D6 block and posted a quarterly loss due to the reduced production in the block, earlier this month warned that output decline could continue at the site. CANADIAN TOWN SEEKS SHALE GAS EXPLORATION BAN NEAR WATER SOURCES February 16, 2012 - Doaktown council has moved to ban shale gas exploration or extraction near the central New Brunswick village's water sources. The village’s unanimously decision to prohibit shale gas exploration or extraction near its water sources comes as SWN Resources has informed mayors in Kent County that the company is preparing to start seismic testing in the area. Doaktown asked the provincial government to complete a hydro-geological survey of its aquifers. “Following determination of the parameters of the aquifers: the village asks the province to ban any and all exploration for natural gas, or extraction within or near those well field areas,” according to a resolution adopted at a Feb. 9 council meeting.
GLOBAL ANTI-FRACKING February 16, 2012 - An anti-fracking coalition with the United States non-governmental organisation Water Defense is the first step towards a global movement, the Treasure Karoo Action Group (TKAG) said on Thursday. “We are putting a very strong emphasis on getting this not only to America but to other continents too,” chairman Jonathan Deal said. “We're looking at capitalising on global synergy and our ability to really focus pressure on where it's needed at certain times.” Deal said any lessons learned or research discovered would be shared. If fracking was proposed in a country, the coalition would offer all forms of support to fight it. Story Treasure Karoo Action Group PA. COUNTY LANDOWNERS PUSHING DELAWARE RIVER DELAY February 16, 2012 - A group of Wayne County landowners eager for natural gas drilling to begin in the Delaware River watershed renewed its call for action in recent weeks, pushing its case in meetings and letters with state lawmakers, the Corbett administration and the interstate commission that proposes to regulate drilling in the basin. Other than a few false starts and the allowance of a handful of exploratory gas wells, drilling has been on hold since May 2010. An attorney for the Northern Wayne Property Owners Alliance sent a letter to the DRBC arguing that the long postponement of drilling amounts to an unconstitutional taking of the members' property. The lawyer suggested that the commission either begin considering applications for natural gas exploration projects or allow gas extraction to proceed under its member states' regulations.
LESS MARCELLUS VISITS February 16, 2012 - Canada's Talisman Energy is making even heavier cuts to its rig count in Pennsylvania's Marcellus Shale natural gas play and will not reverse that trend until gas prices return to $4/Mcf, CEO John Manzoni said Wednesday. Prevailing gas prices are "unsustainable in the medium term, but we think they may last a year." Along with slashing its Marcellus Shale spending to $600 million from $1.2 billion in 2011, the number of rigs at work in the play in 2012 will be cut to three from 10 in 2011 and a previously anticipated five to seven because of a North American gas price that clearly reflects an excess of supply, he told a conference call. PA.
COUNTY TO SEEK February 16, 2012 - Washington County commissioners are preparing to advertise a proposed ordinance to allow the county and its municipalities to receive impact fees from the Marcellus Shale gas industry. Following an off-the-top distribution, host counties receive 36% distributed pro rata based on the number of spud wells in the county relative to the number of spud wells statewide. Host municipalities receive 37% distributed pro rata based on the number of spud wells in the municipality relative to the number of spud wells statewide. The remaining 27% is distributed among all municipalities in a host county. Half is distributed among host municipalities and "nonhost" municipalities that are either contiguous with a host or are within 5 miles of a spud well. NEW
IRISH ANTI-FRACKING February 16, 2012 - A new cross-border umbrella organisation to campaign against hydraulic fracturing for shale gas in Ireland has been established. Good Energies Alliance Ireland includes a number of groups already campaigning against fracking on both sides of the border and says it is now taking the battle to a new level. Spokeswoman Dr Aedin McLoughlin said GEAI is adopting a balanced and professional approach to the anti-fracking campaign and is backed by advisors in the areas of economics, law, science, public health and policy development. GAS
DRILLERS’ February 16, 2012 - Pennsylvania's long-awaited Marcellus Shale legislation, signed by Gov. Corbett this week, reflects an approach to managing the state's resources that is reminiscent of the Wild West-style energy extraction of the late 19th century. The state governments of that era sought to minimize limits on energy extraction and assist developers wherever possible. Pennsylvania embodied that model in the decades following Edwin Drake's discovery of oil in Titusville in 1859. In recent generations, American governments have almost uniformly abandoned that laissez-faire approach. But Pennsylvania's recently passed gas-drilling legislation represents a blast to the past. PA.
TOWNSHIP COMMISSIONERS February 16, 2012 - South Fayette commissioners are exploring legal action against the state over provisions of the bill that stripped them of their ability to restrict where natural gas drilling could occur. The new regulations on natural gas drilling allow counties to impose an impact fee on drillers, but prevent municipalities from blocking drilling from certain zoning like residential areas. South Fayette had been sued last year by Range Resources over zoning restrictions the township passed in 2010. "The issue is whether the Legislature has the ability to write legislation for one specific industry that eviscerates 150 years of established law," Kamin said. MORE
EAGLE FORD AND ALBERTA February 16, 2012 - Talisman expects to more than double production in the Eagle Ford from a 30 million cubic feet per day exit rate for 2011. Investment will also be directed toward the Duvernay play in Alberta, as well as oil targets in Colombia and continued development in South-east Asia, Manzoni said. Spending will be halved in the Marcellus shale play, dropping to approximately $600 million US from $1.2 billion spent last year. Rig activity in the region will top off at three this year compared with 11 rigs in 2011. The reduction will be similar in the Alberta Montney, where Talisman will run four rigs, down from 11 during the fourth quarter 2011. Shale Gas News February 15 2012
ALASKAN WELL BLOWOUT February 15, 2012 - A North Slope oil rig was evacuated Wednesday after a Repsol drilling contractor hit a pocket of gas that triggered a methane blowout. The venting gas sparked fears the rig could explode, but the rig was intact and Repsol was reported to be working toward control of the situation. As of late Wednesday night, a crew of specialists was on its way from Texas to help bring the well under control. There were no reports of spilled oil. Repsol initially estimated that approximately 1,200 gallons of drilling mud had been released to the gravel drilling pad and surrounding snow-covered tundra. But as of Wednesday night, that estimate grew to 42,000 gallons of drilling mud, or about 1,000 barrels, according to the Alaska Department of Environmental Conservation.
LEGISLATORS WANT FRACKING February 15, 2012 - Should Oneida County allow hydraulic fracturing on county-owned land? A pair of county legislators is pushing for a bill that would ban the practice, commonly known as fracking, until all health and environmental impacts have been identified and addressed. So far, no one has approached the county to obtain a lease. But legislators Emil Paparella, R-Utica, and Chad Davis, D-Clinton, want to be prepared if that happens. “We don’t want them to do any fracking on county property,” Paparella said. The county owns about 11,138 acres of land. CANANDAIGUA, NY PONDERS FRACKING MORATORIUM February 15, 2012 - A possible moratorium on high volume hydraulic fracturing in the city of Canandaigua was discussed Tuesday during an Environmental Committee meeting. More than 20 residents were at the meeting, and some felt a more permanent ban should be placed to block the controversial gas-drilling technique. City Attorney Michele Smith said that before a moratorium can be constructed, specifics need to be put into place on what exactly would be temporarily banned. She added that in order to pass a moratorium, there would need to be a detailed analysis why one would be needed in the first place.
GASTAR LEASES BAYER PROPERTY February 15, 2012 - Gastar Exploration plans to drill for natural gas on 1,400 acres at Bayer Corp.’s plant site in West Virginia’s Northern Panhandle. Houston-based Gastar is leasing the property near New Martinsville from Bayer. Gastar signed a drilling contract with PPG Industries last year to drill on about 3,300 acres north of Bayer’s plant. WOULD FRACKING IN N.C. INCLUDE CONSUMER PROTECTIONS? February 15, 2012 - The North Carolina State Assembly is set to consider legislation to allow the controversial mining process known as fracking, which is illegal in the state. While the Legislature debates the practice, Jordan Treakle, who coordinates the Rural Advancement Foundation International's Contract Agriculture Reform Program, says some landowners already are being approached - and taken advantage of - by mining companies. "Our concern in North Carolina is that the contracts that companies are offering landowners are lacking some basic protection, and also not compensating landowners for their resources." More than 70 land-use leases already are signed in the state, Treakle says, with companies paying as little as $25 an acre for the preliminary commitment. PA.
PUC TO HIRE PRIVATE FIRM February 15, 2012 - The state Public Utility Commission is assuming new regulatory duties under the Marcellus Shale drilling impact fee law and one of its early moves will be hiring a private firm to handle the collection and distribution of potentially millions of dollars. PUC Chairman Robert Powelson said Tuesday the agency will seek formal bids from accounting or consulting companies to handle the administrative fee duties given it under the impact fee law signed Monday by Gov. Tom Corbett. The agency has a similar outsourcing arrangement for fees going to a telephone service fund that it oversees, added Mr. Powelson. Shale Gas News February 14 2012
DRILLERS RETURN TO CONTESTED February 14, 2012 - A Butler County gas and oil exploration company has applied to state regulators for a permit to drill for natural gas in Nockamixon Township, just south of the Lehigh Valley, reigniting a controversy that divided neighbor against neighbor there just a few years ago. Michigan-based Arbor Resources abandoned a 4-year effort to drill for gas in 2010 in the face of local zoning regulations that restricted drilling to industrial sections of the township. Residents who inked mineral leases with the company clashed with opponents worried about the environmental impact. This time, the new drilling company, Turm Oil Inc. will have an advantage, because of language included in the state natural gas impact fee legislation that was signed into law Monday night by Gov. Tom Corbett. It restricts local municipalities' ability to limit where and how companies can extract gas.
'FAMILIES AGAINST FRACKING' February 14, 2012 - Several Ohio families gathered in Columbus Tuesday with Valentines in hand to discuss how much they dislike fracking, reported ONN's Stephanie Mennecke. "We have to say what is in our heart. We are unable to sleep at night because these injection wells are close to our lands," Erin Renee Ripple of Amesville said. Athens resident Sarah Conley said that she is worried the livelihood of local farmers will be jeopardized. "They can stay on their farms and grow us good food rather than them having to sell their property because their land is being polluted because of the fracking practices. It's scary to us," Conley said. The two families have been making Valentine's Day cards for Gov. John Kasich that said how much they love their land and water, and that they're against injection wells and fracking. COMPANY OUTLINES PLANS FOR FRACKING IRELAND February 14, 2012 - The fracking will start at least a year earlier in Northern Ireland than it will in the Republic if it goes ahead at all, a group of TDs and senators were told today. Tamboran chief executive Richard Moorman said he had hoped that the process of drilling for gas in Leitrim and Fermanagh could go ahead together, but he expected it to start earlier in Northern Ireland because the regulatory process was “much more tuned up” North of the border. However, elected representatives reacted sceptically to claims by the company that the process of fracking would be safe. Leitrim TD, Michael Colreavy, told Tamboran: “I do not trust you guys”, and he said the company’s primary concern was to make money for itself. Mr Colreavy said the burden of proof that the process was safe rested with the company and the go-ahead for drilling should only be given it is proved “beyond all doubt” that it is safe to go ahead. NATURAL GAS PRICES: LOW NOW, LOWER LATER? February 14, 2012 - Some analysts believe natural gas could even fall below $2 per million BTUs before it heads higher. "The fundamentals remain bearish," said Gene McGillian, an analyst with Tradition Energy. He said cheap prices drew in a lot of new speculative longs in recent weeks. "We've been pivoting for the last two weeks between a dime of $2.50," per million BTUs, McGillian said. But if the price starts to decline, some of those new longs might be the first to abandon the trade, driving prices down fast. "I don't think a $1 handle would be sustained, but I think there's a good chance we could see it at some point," he said. ACTIVISTS ASSAULT NEW KEYSTONE XL PIPELINE BILL February 14, 2012 - With the U.S. Senate poised to begin debate on a bill that would greenlight the controversial Keystone XL pipeline as early as Tuesday, activists and other citizens have barraged the Senate with more than 350,000 petitions opposing the legislation in less than five hours. Activists Bill McKibben, Robert Redford and other celebs such as Kyra Sedgwick and Ian Somerhalder have joined the Natural Resources Defense Council and other groups in coordinating the petition effort. The goal is 500,000 messages to the Senate by Tuesday. A rider on a payroll tax bill passed last December required President Obama to make a decision about TransCanada Corp.'s Keystone XL pipeline (offsite map) by Feb. 21. His administration decided well in advance of that date to reject the Keystone environmental approval application, saying there would be insufficient time to complete an environmental review, thus stopping the project. Now there is a new effort, led by Sen. John Hoeven (R-N.D.) to resuscitate the project by bypassing the environmental review and switching the decision-making power from the EPA to Congress. PA. GOVERNOR CORBETT SIGNS CONTROVERSIAL SHALE BILL February 14, 2012 - The Marcellus Shale impact fee and regulatory measure that passed the General Assembly last week is now law, after Republican Gov. Tom Corbett signed it on Monday evening. He described the measure, which will charge drillers a per-well fee, update state environmental regulations and subject local zoning ordinances to state-crafted standards, a historic overhaul of state law. Most of the measure goes into effect in 60 days. However, the portion requiring each county within the drilling region to decide whether to impose the impact fee is effective immediately. Those counties have 60 days to adopt an ordinance imposing the fee on shale wells. PA.
TOWNSHIP TO CONTEST February 14, 2012 - The same day Gov. Tom Corbett added his signature to the state's new natural gas impact fee bill, one local municipality took steps to challenge the new statute. The Robinson Township Board of Supervisors voted Monday night to have its solicitor take action to protect the township's zoning rights related to House Bill 1950. The bill passed the House Wednesday and calls for gas extraction companies to pay a fee for drilling in the state, but pre-empts local zoning ordinances that determine where the activity can take place. Under the new law, gas drilling would be permitted in residential areas and setbacks would be less than what many local municipalities now allow. Township Attorney John Smith, of Smith Butz of Canonsburg, said the township is concerned about its mandate to protect the health, safety and welfare of its citizens. One major provision for that has been local zoning, he said. $67
MILLION REQUESTED February 14, 2012 - Federal pipeline safety programs would get an extra $67 million and nearly 120 new employees under a proposal President Obama announced Monday that brought cheers from safety advocates pushing to address accidents and growing safety concerns. The request, part of the president's $3.8 trillion plan, would almost double the number of enforcement agents nationwide. The increase also would cover improvements from research to accident investigation to information databases, according to an agency news release. Pennsylvania safety officials and advocates and the national safety group Pipeline Safety Trust all urged Congress to approve the funding, though Republican leaders have said the president's budget will be dead on arrival there. Obama's plan doesn't provide a comprehensive solution to several key issues as the state's pipeline system expands to handle the rush of shale gas, several officials said. Pennsylvania has 60,000 miles of pipe, and drillers could add 25,000 miles.
FRACK VICTIM CONFRONTS SALAZAR, February 14, 2012 - The Obama administration was served with a stark reminder Tuesday that its embrace of natural gas drilling is being met with heartfelt resistance from some. During an event in Ohio, a man who said he was a “victim of federal gas drilling” confronted Interior Secretary Ken Salazar. The man said hydraulic fracturing, or “fracking,” had polluted his water supply and turned his home into a “public health hazard. I have two neighbors who have now been diagnosed with cancer because of our toxic water,” the man said, as he began to cry. “It’s not being done safe; we need help. Can you help us?” Before the man spoke, Salazar touted fracking.
HYDROFRACKING: February 14, 2012 - Where vertical fracking had used tens of thousands of gallons, horizontal uses millions. “Risk is proportional to time on job,” said Dr. Tony Ingraffea, a Cornell professor who specializes in hydraulic fracturing. He says horizontal drilling holds a risk of water contamination. “It is possible that in the hydraulic fracturing process, the fracking fluids and any other contaminants that are already down there that are gathered by the fracking fluid could migrate upwards to an underground source of drinking water,” he said. The gas industry is adamant this has never happened, but Ingraffea cites a 1987 EPA report that noted such an incident in West Virginia. He also points to the EPA’s current investigation into a case in Wyoming. N.C.
SEISMIC RESEARCH February 14, 2012 - As concerns mount in several states that fracking may be linked to earthquakes, UNC-Chapel Hill geologists plan to conduct seismic tests in Lee and Chatham counties to document naturally occurring earth movements in the region. The geologists are looking for a dozen property owners to donate about 100 square feet of land to host a seismo meter for at least a year, during which the area would be fenced off and inaccessible. With the state legislature likely to debate legalizing natural gas drilling this summer, university and government scientists are quickly lining up private land owners as participants in scientific research on the region's natural resources. In addition to seismology measures, scientists will also measure water quality in about 75 local wells. Shale Gas News February 13 2012
CHESAPEAKE ENERGY’S 2012 February 13, 2012 – This morning Chesapeake Energy announced a new financial plan that it hopes will allow it to raise the billions in cash it needs to get through the next year or so without going bankrupt. But with natural gas prices already at decade-long lows and set to go even lower in the months ahead, there’s no telling whether even Aubrey McClendon’s legendary financial finagling will be able to save the day. Desperate times call for desperate measures. Chesapeake Energy is in a bind. It’s the second-biggest natural gas producer in the country after Exxon-Mobil. But with natgas prices having fallen to their lowest levels in a decade ($2.40 per thousands cubic feet), Chesapeake isn’t generating enough cash. Over the years he has sold JV stakes and entire acreage chunks to the likes of Statoil, Total, Cnooc, Plains, BP, BHP Billiton and more. PA.
DEP UPDATING PERMITTING February 13, 2012 - One of the first Marcellus Shale wells to be permitted in the Delaware River watershed was neither horizontal, or hydraulically fracked. But environmentalists who challenged the permit issued by the DEP say state regulators who approved the project took less than 35 minutes to review it and did not consider its impact on nearby rivers and streams. In a settlement announced by the Delaware Riverkeeper Network on Monday, the organization says those days of quick turnaround permit reviews are over. “The DEP needs to do a better job of reviewing permits, rather than just using its rubber stamp,” said Delaware Riverkeeper Network attorney Jordan Yeagar. “This settlement will help make that happen.” The Riverkeeper Network, along with Damascus Citizens for Sustainability, filed an appeal of the permit to the Environmental Hearing Board. Newfield Appalachia PA, LLC applied to drill the “Woodlands” well in Damascus Township, Wayne County, Pa., less than half a mile from the Delaware river. The nearby Hollister Creek watershed is also designated as a “Special Protection High Quality” (HQ) watershed. Story Damascus Citizens for Sustainability FRACKING STUDY SENDS ALERT ABOUT LEAKAGE OF POTENT GREENHOUSE GAS February 13, 2012 - Fracking may lead to larger releases of methane into the air than previously estimated, according to a new study. Scientists are now trying to find out if the underestimation is unique to the gas field they examined or whether rogue emissions from such fields are also being underestimated in other areas where there is hydraulic fracturing – or "fracking" – to collect natural gas form certain rock formations. The study, conducted by researchers from the National Oceanic and Atmospheric Administration's (NOAA) Earth Systems Research Laboratory (ESRL) in Boulder, Colo., suggests that the gas field in Colorado's Weld County leaks roughly 4 percent of its gross annual production into the air. Previous estimates put the leakage at 1.6 percent.
FRACKING FOR WATER February 13, 2012 - While the basic fracking process is the same for gas, oil or water, those involved say water well fracking is much less environmentally damaging. "Our max pressure for fracking is roughly 3,000 pounds where oil and gas fracking goes up to 40,000 pounds and they use thousands of gallons a minute, where we're using a hundred to two hundred gallons a minute," said Kent. "And they're also injecting different chemicals to help the flow of oil and gas where we're just using natural, high-chlorinated water." Another big difference is in most oil and gas fracking operations they're driving through shale which often crumbles, potentially allowing contaminants trapped in the shale, to escape into ground water.
SIERRA CLUB ANSWERING FOR February 13, 2012 - The recent disclosure of the Sierra Club’s secret acceptance of $26 million in donations from people associated with a natural gas company has revived an uncomfortable debate among environmental groups about corporate donations and transparency. The gifts from the company, Chesapeake Energy, have drawn criticism from some environmentalists. “Sleeping with the enemy” was a comment much forwarded on Twitter posts about the undisclosed arrangement. “Runners shouldn’t smoke, priests shouldn’t touch the kids, and environmentalists should never take money from polluters,” John Passacantando, a former director of Greenpeace who is now an environmental consultant, said in an interview.
MARYLAND LAWMAKERS WRANGLE February 13, 2012 - Sharp disagreement has surfaced in the Maryland legislature over how much to tax natural gas production in the event Maryland allows energy companies to drill for shale gas deep below the state’s westernmost counties. Del. Maggie McIntosh and Del. Sheila Hixson on Friday introduced a bill that would let the state collect 15% of the wholesale value of any natural gas produced from Maryland’s portion of the Marcellus Shale. That’s six times the rate proposed by Sen. George C. Edwards (R-Allegany and Garrett), who earlier introduced a bill to set the “severance tax” rate on natural gas at 2.5%. Though the mechanisms differ, both bills propose to use the resulting revenue in the affected areas to address the potential environmental and public health impacts of gas production. MON RIVER QUEST WINS REGIONAL AWARD February 13, 2012 – The Mon River QUEST, a comprehensive water quality survey administered at 16 locations along the Monongahela River, received a regional IMPACT Award from the National Institutes for Water Resources. "We've already had an impact, we're growing the program, there's a large amount of interest in the program and it's having positive results on a major river system in our region," said Paul Ziemkiewicz. The organization has also reached out to watershed alliances around the area to create a larger impact in patrolling water quality for the area. "We are working with watershed groups throughout the Mon River basin in West Virginia, Pennsylvania and Maryland – about 15 in total," said Dave Saville, outreach coordinator for Mon River QUEST. "Because we use volunteers, TDS are fairly easy to monitor for, so there are citizen volunteers associated with these groups monitoring the water."
STILL A FRACKER’S FAVORITE: February 13, 2012 - In an Oklahoma speech last week, Santorum said, “I come from Pennsylvania [where] we’re doing a little bit of [fracking] in Pennsylvania, thank God.” He then went on to say fracking is “the new boogeyman” — the “new way [for environmentalists] to try to scare you [by] saying, ‘Look what’s going to happen. Ooh, all this bad stuff’s going to happen, we don’t know all these chemicals and all this stuff.’ Let me tell you what’s going to happen: Nothing’s going to happen.” Santorum is one of the top U.S. Senate recipients of campaign contributions from the oil and gas industry — and what makes those numbers so stunningly outsized is the fact that he remains one of the top Senate recipients even though the last time he ran for Senate was in 2006.
CHESAPEAKE FUNDING GAP February 13, 2012 - Chesapeake Energy Corp said it will sell $10 billion to $12 billion in assets as decade-low natural gas prices force the company to raise cash to cover a shortfall. The second-largest U.S. natural gas producer has a strategy to increase output from more profitable wells that produce crude oil and natural gas that is rich in liquid content. Despite those efforts, the Oklahoma City, Oklahoma, company faces a funding gap in the billions for next year and it needed to cobble together a series of deals to raise cash. Chesapeake said it expects the sales or joint ventures for its West Texas Permian Basin assets and Mississippi Lime acreage in northern Oklahoma to yield $6 billion to $8 billion this year. The company expects those deals to close by the end of the third quarter. US EPA PROBING WASHINGTON COUNTY, PENNSYLVANIA SHALE OPERATIONS February 13, 2012 - The U.S. EPA is investigating whether specific Marcellus Shale drilling and compressor station operations in Washington County have caused environmental damage that violates federal regulations. The federal "multi-media" investigation of air, water and hazardous materials impacts, which the EPA has not previously acknowledged, began in late September when on-site testing was done. According to the latest accounting on the state DEP's website, there are almost 700 drilled Marcellus Shale gas wells in Washington County, and as of the middle of last year 278 of those were producing. Although the DEP does not track compressor stations by county or region, there are at least 11 in Washington County. Range Resources, which owns the vast majority of the wells in Washington County, and MarkWest Energy Partners, which owns most of the compressor stations, could not be reached for comment.
‘O-H-I-O, February 13, 2012 – More than 60 foes of fracking from as far away as Cleveland marched along snowy Kent sidewalks Saturday chanting: “O-H-I-O, hydro fracking’s got to go,” “No more earthquakes” and “You can’t drink money.” The environmental impact of fracking is a subject of controversy, often pitting environmental activists, who claim the process will do untold damage to nearby water and air, against oil and gas companies, who claim the process is relatively safe. After painting “NO FRACKING” on the KSU rock, the protesters turned and marched back to The Kent Stage, where Dr. Ted Voneida and Jaime Frederick spoke. Voneida said fracking could damage not only the health of an individual, but the health of a community. Voneida said a surprising side effect of fracking can also be a lack of medical care. He said in talking with others in the medical field, he has found many medical students will refuse to serve in communities that had been fracked.
CONSOL BUYING UP February 13, 2012 – Under the CNX Gas Corp. banner Consol drilled 78 wells in 2011, including 19 in central Pennsylvania, 50 in southwest Pennsylvania and nine in northern West Virginia. The cost to drill and frack the wells averaged $5 million each. In horizontal Marcellus and Utica shale drilling, gas companies drill about 1 mile deep into the earth before turning the drill bit horizontally in an effort drain gas from the properties within the drilling unit. Consol's average drilled lateral was 3,850 feet. The company expects to drill 99 Marcellus Shale wells in 2012, 39 of which will target ethane, propane, butane and pentane-rich gas. In the Ohio Utica Shale, Consol officials said they would drill 22 wells, all of which would target these natural gas liquids, in addition to the methane portion of the natural gas stream.
RECORDERS OF PA. DEEDS MAY February 13, 2012 - In what attorneys said is a significant win for natural gas drillers, the Commonwealth Court has ruled that counties' recorders of deeds are required by statute to record all lease documents presented to them, including single documents containing multiple lease assignments. Kevin C. Abbott, of Reed Smith in Pittsburgh, who represented plaintiff Chesapeake Appalachia, said the ruling is important for oil and gas companies in Pennsylvania, many of which have incurred significant additional expenses and had to perform extra work as a result of some county recorders' refusal to accept multiple lease assignments in a single document. BG
GROUP TO CUT FRACKING February 13, 2012 - BG Group is dramatically scaling back plans to employ the controversial practice of "fracking" for shale gas in the US. The oil and gas producer, which was created by a demerger from British Gas, will cut its shale gas drilling activity by almost 80% because weak gas prices in the US are making it far less profitable. BG's decision to scale back its fracking activity comes after US gas futures prices fell 39% in the past year, as a result of greater gas production and a milder winter. The group said it expects to produce the equivalent of 80,000 barrels a day of gas from US shale fields in 2015, well under half its previous target of 190,000 barrels. BOOM
AND BUST: February 13, 2012 - Rural residents who decided to fix up family farms rather than move to smaller homes may be hard-pressed if their gas leases aren't renewed. Small-business owners who expanded their operations to serve gas companies may find they can't pay their bills. Let's hope the Marcellus Shale Coalition's relentless boosterism didn't exacerbate a climate of overspeculation and make the pain worse. Industries that grow too quickly and then pull back painfully create a toxic boom-and-bust cycle. Pennsylvania needs an energy industry that is economically and environmentally sustainable, guided by academics who provide prudent advice and careful analysis. That would do more to safeguard our communities and natural resources than any amount of impact fees.
NORTHEASTERN PA. COUNTIES February 13, 2012 - Vertical exploratory wells that have never been hydraulically fractured and do not produce gas, like the two drilled in Lackawanna County and the eight drilled in Wayne County, will not be eligible for the fee. "Our concern was that truly exploratory wells do not pay the impact fee," said the chief of staff for Senate President Scarnati. He added that the local impact of such wells is relatively minor and "quite frankly, we don't want to discourage exploratory wells." On the other hand, the bill presumes that horizontal wells are not exploratory so even those not producing gas are eligible for the fee, he said. That means Luzerne County's two test wells, both of which are horizontal, will be subject to the $50,000 per well fee if the county adopts it, despite the fact that both were plugged after they showed little prospect of producing economic amounts of gas. The bill allows fees to be collected for three years on horizontal wells with no production.
MARCELLUS SHALE = February 13, 2012 - The same year Bill Caroselli finished law school, Bob Dylan first told the world that the times were a-changin'. A half-century later, the birth of the multibillion-dollar Marcellus Shale industry has transformed the region's legal landscape, pushing lawyers like Mr. Caroselli to practice oil and gas law after decades of specialization in other fields. Firms that already had oil and gas practices are making them bigger. Firms that didn't have a practice are rushing to create one. Small firms and solo practitioners are also catching up, hoping to represent landowners as Big Law allies with the gas companies. "All of us were taught property rights and real estate when we were in law school, but haven't really thought about those issues for 20, 30, 40 years," Mr. Caroselli said. "So it's a whole new mindset for what you have to do." TAX
OR FEE? ASK PA. February 13, 2012 - Pennsylvania will shortly have an impact fee for Marcellus Shale. Grover Norquist called it a tax, but Pennsylvania Republicans passed it anyway. Gov. Tom Corbett, who signed Norquist’s pledge, plans to sign the Marcellus bill, too, according to his spokesmen. Political reality trumps ideology. The Commonwealth Foundation posted a list of the representatives who had signed Norquist’s no-tax pledge to the Internet under the headline “Will These House Members Honor Their Pledge?" "Will they or won’t they keep their word to the families of Pennsylvania?” it asked. Shale Gas News February 12 2012
THOUSANDS OF MILES OF February 13, 2012 - Pennsylvania regulators are taking steps to begin safety checks of some natural gas pipelines in the Marcellus Shale regions - hiring inspectors and drafting new rules that will bring the state in line with the rest of the nation. But a dispute continues over whether the state oversight goes far enough. The new safety-inspection and construction regulations still will not apply in the most rural areas of shale country, the hotbed for new pipeline projects, with up to 25,000 miles being built or on the drawing boards. In Washington, U.S. officials are pushing to close that rural loophole, but the gas and pipeline industries are fighting hard to keep it in place, arguing that the hazards are remote and the cost would far outweigh any benefits. The industry is building gathering pipelines in rural areas with virtually no safety oversight. (Gathering lines typically link wells with interstate pipelines) REGULATING PENNSYLVANIA SHALE OPS: P.U.C. TO GET NEW ROLE February 12, 2012 – The Marcellus Shale legislation awaiting Gov. Tom Corbett's signature would introduce a quiet player into the divided, often loud, world of gas drilling: the Public Utility Commission, a relatively unknown state agency suddenly charged with determining which communities are illegally regulating gas extraction. The agency would also be asked to review the scores of local ordinances that allow municipalities to establish specific setback rules or predrilling requirements. Lawmakers allotted $250,000 out of the general state fund to help the PUC incorporate the databases needed to track shale development and are planning additional funding to help pay for personnel. The agency has about 500 employees. PA.
FIREFIGHTERS LEARN EMERGENCY February 12, 2012 - Westmoreland County firefighters, as part of their battle plan, gathered at Hempfield No. 2 VFD to get tips from Mike Wolford, an incident management specialist for Wild Well Control of Houston, Texas. They learned that the greatest dangers can come from "blowouts," an uncontrolled flow of natural gas erupting to the earth's surface that can spark fires that can burn for days. National statistics put the number of blowouts at 2 for every 1,000 gas wells drilled. The most likely emergencies include workers being crushed or suffering other injuries. Medical emergencies, such as heart attacks, are also a hazard at well sites. Wolford said blowouts can result in catastrophic situations, spreading smoke and dangerous chemicals in all directions. The first thing firefighters need to know is the location of wells, Thiel said, "We are not being notified."
UTICA SHALE BRINGS BIGGER February 12, 2012 - Sustersic said the final financial terms of $5,900 per acre with 21% on royalties are, to his knowledge, the highest yet paid in eastern Ohio. In September, the Utica Landowners Group arranged the signing of 26,000 Belmont County acres to Exxon Mobil subsidiary XTO Energy at a price of $4,950 per acre with 19% royalties. Antero is joining Chesapeake and other companies in a plan to ship ethane to Texas. When asked which other companies the property owners considered for the deal, Sustersic said a "trade secret" would not permit him to disclose this. Antero has 215,000 net acres of leasehold in northern West Virginia and SW Pennsylvania. The operations map shows the company is working in Wetzel County, WV. The website notes Antero has drilled and fracked 65 Marcellus Shale wells, and is in the process of 19 more. OHIO
GAS PRODUCERS OPPOSE February 12, 2012 – Ohio petroleum producers are pushing back against a call by the state attorney general to increase environmental penalties and chemical reporting requirements on the drilling industry. Republican Attorney General Mike DeWine said the state has no jurisdiction under the Consumer Sales Practices Act to help landowners who sell lease rights to their property. DeWine has recommended three changes that he says will bring Ohio in line with other drilling states and allow effective enforcement against violators. Terry Fleming, executive director of the Ohio Petroleum Council, opposes the idea of pursuing stiffer regulations. PA.
FRACKING ALLIANCE SEEKS February 12, 2012 - In Lawrence County, there were 3,677 leases, with 400 to 600 more expected the beginning of this month, the recorder’s office said. The Fracking Truth Alliance, a group of about 60 Lawrence County landowners in the New Wilmington area, has organized to educate people about potential risks. FTA members say they also are concerned about air pollution, destruction of farmland and agriculture and declining property values because well development takes up more land. FTA is asking people who would like to learn more about fracking to come to a meeting at 7 p.m. Wednesday at New Wilmington High School, 350 Wood St., New Wilmington, Pa.
SOUTH DAKOTA: February 12, 2012 - Amid a push to expand South Dakota’s fledgling oil and gas industry, state lawmakers have a message for energy companies that use the controversial drilling technique of hydraulic fracturing: Come and get it. South Dakota has watched as neighboring North Dakota’s economy has boomed in recent years, fueled by big money flowing in from that state’s oil reserves. That’s why South Dakota officials are welcoming hydraulic fracturing, or fracking, because it could prove key to fulfilling a state initiative to expand production in the state’s oil patch in Harding County. “We’ve got all the easy oil,” said Bob Townsend, minerals and mining administrator at the South Dakota Department of Environment and Natural Resources. “What’s left is the unconventional oil” that without fracking drillers weren’t able to get to the surface economically. Shale Gas News February 11 2012
SHALE DRILLERS HAVE BIG THIRST February 11, 2012 - Shell Appalachian notified Lawrence County officials of plans to draw water from the creek for the purpose of fracking. The company has applied with the state DEP for approval to pull a maximum of 960,000 gallons a day from the creek. That would be enough to dry up a stretch of Slippery Rock Creek roughly 10 feet deep, 110 feet wide and 110 feet long. But barring a drought of historic proportions, draws that large probably wouldn't even noticeably affect water flow or drinking water service to the Ellwood City area, said Gary Lobaugh, a spokesman for Pennsylvania-American Water Co.'s western Pennsylvania office. He said PAWC recently became aware of the Shell request and hasn't taken a position on it yet, but the company would contest any permit request that its officials think might compromise the supply or quality of its water sources.
FRACKING OF 1 OHIO NATURAL GAS February 11, 2012 –One vertical-horizontal well in Carroll County required nearly 1 million pounds of liquid chemical additives. That well, southeast of Canton near Carrollton, used 969,024 pounds — 484.5 tons — of chemical additives. It also required 10.5 million gallons of water and 5,066 tons of sand. The chemical additives are used as iron-control agents, corrosion inhibitors, clay stabilizers, breakers, gelling agents, friction reducers, bactericides, scale inhibitors, pH adjusting agents, cross-linking agents, solvents and surfactants. “There’s no doubt that there are some nasty chemicals going into Ohio wells, and no one disputes that,” said Dr. Jeffrey C. Dick, chairman of the geology department at Youngstown State University. PA. MAN PLEADS GUILTY TO ILLEGAL WASTEWATER DUMPING February 11, 2012 - A Greene County businessman pleaded guilty on Thursday to 13 of 98 charges of illegally dumping millions of gallons of waste across Western Pennsylvania counties for more than six years. Robert Allan Shipman entered the plea before Greene County Judge Toothman to one count each of theft by deception, receiving stolen property, tampering with public records or information and criminal conspiracy; five counts of unlawful conduct; and four counts of pollution of waters. The state attorney general's office said Shipman, through his company, Allan's Waste Water Services Inc., orchestrated a scheme to dump gas drilling wastewater and sewage sludge into streams, mine shafts and business properties in Allegheny, Fayette, Greene, Lawrence, Washington and Westmoreland counties between 2003 and 2009. Drivers were told to leave their water valves open at gas wells to allow production water to flow onto the ground and into nearby waterways. Story Videos: Dunkard Movie Remember Dunkard Creek
MULTIPLE LEAKS DISCOVERED AT February 11, 2012 - Among the EPA's list of potential issues were: at least 3 flaring events since September 2011; more than 1,800 instances in which valves were not remonitored within 120 days of a problem; shipping unsampled liquid wastewater offsite and is not aware of possible volatile organic compounds or hazardous air pollutants associated with it; 5 leaks were discovered in 123 valves, one of four pumps was found to be leaking; and the company is not conducting daily visible emission monitoring of the facility. The report notes MarkWest is redesigning a flare tip after the September flaring incident, which occurred when a new fractionation tower and heater were brought online. The company has a third-party contractor that conducts its leak-detection and repair program. That company monitors affected valves quarterly, pumps monthly and compressors annually. Story Gas Processing Plant in Houston, Pa
PENNSYLVANIA’S PURPLE SQUIRREL February 11, 2012 - A Pennsylvania couple trapped, of all things, a purple squirrel on Sunday. Percy and Connie Emert, of Jersey Shore, Pa. caught the unusual animal when trying to keep birds safe from the rodents. The Emerts do not know why the squirrel is purple. "We have no idea whatsoever. It's really purple. People think we dyed it, but honestly, we just found it and it was purple." Krish Pillai, a professor at Lock Haven University of Pennsylvania, commented that "This is not good at all. That color looks very much like Tyrian purple. It is a natural organobromide compound seen in molluscs and rarely found in land animals. The squirrel (possibly) has too much bromide in its system." Local squirrel enthusiast Erik Stewart said, "If it has white hair on it at all, it's probably not dyed. I've had multiple squirrels as pets, though, and I've certainly never seen a purple one. I've tried to dye my dog before, and trust me it didn't look like this.”
SHIPMAN PLEADS GUILTY TO February 11, 2012 - State prosecutors charged Mr. Shipman with illegal dumping in March after a grand jury report indicated he was earning up to $7 million a year while he and his company, Allan's Waste Water Service, dumped waste materials in Allegheny, Fayette, Greene, Lawrence, Washington and Westmoreland counties between 2003 and 2009. According to the grand jury report, the waste materials were dumped in holes, mine shafts and waterways, often at night or during heavy rains. "He was pouring the stuff in any hole he could find," a spokesman for the attorney general's office said in March. The nine-page grand jury presentment recommended 98 criminal charges against Mr. Shipman and 77 counts against Allan's Waste Water Service. Among the charges in the presentment was that Mr. Shipman's company emptied tanker trucks of drilling waste into a floor drain that led to Tom's Run, which empties into Dunkard Creek. Story Dunkard Creek Watershed Association PA
DEP HALTS CARRIZO FRACKING February 11, 2012 – An out-of-control Susquehanna County natural gas well released waste fluids to a Forest Lake Twp. well pad early last week, leading state regulators to halt all activity at the site. Two valves failed during fracking at Carrizo Marcellus' Baker 4H well during the afternoon of Jan. 30. Carrizo has drilled 67 wells in Pennsylvania, most of them in Wyoming and Susquehanna counties. Regulators noted that the fluid coming out of the well was "relatively clear." Radiological tests and measurements of methane in the atmosphere showed nothing higher than normal background levels at the well pad. The department did not release an estimate of how much fluid escaped from the well, but Ms. Connolly said the fluid was flowing out at a rate of about 300 to 400 gallons a minute for less than half an hour.
MARCELLUS SHALE VOTE IN February 11, 2012 - Five of the nine state leaders that represent most of the Alle-Kiski Valley voted against a set of rules regulating the Marcellus shale natural gas drilling industry. At least some local officials are upset that they've lost any say in controlling the industry, with one saying that bill sponsor Rep. Brian Ellis has "sold out" the people he represents. State Sen. Jim Ferlo called the legislation "outrageous." "I'm very fearful of what the impact will be now that millions of acres are open; not only forest and game lands, but residential communities that will be victimized by drilling," he said. "It's going to haunt us for decades to come." The House approved the bill, known as HB 1950, by a vote of 101-90 on Wednesday, and the Senate approved it Tuesday, 31-19. Shale Gas News February 10 2012 CANCER CLUSTERS FOUND NEAR WASTEWATER PIPELINES February 10, 2012 - The Germans are finding cancer clusters near pipelines that carry flowback and produced water. For those who can’t watch videos on their computers, here are a few of the Cliff Notes.
DRILLING WASTEWATER February 10, 2012 - Authorities said that from 2003 to 2009 Shipman failed to comply with DEP regulations and permitted gas well production water to be discharged into Rush Run, Toms Run, Morris Run and tributaries of Dunkard Creek in Greene County, and Pigeon Run in Washington County. Agents from the state attorney general's office also said Shipman directed his drivers to falsify manifests so his company could bill customers for the full capacity of their trucks, regardless of the amount of waste actually being disposed, the paper reported.
NUCLEAR POWER VS. February 10, 2012 - When critics say nuclear power is risky, they often mean the risk of an accident. The big issue has always been the price of electricity from competing sources. And generally, that comes down to a prediction about the future cost of natural gas, which usually sets the price of electricity on the grid in much of the US. The nuclear industry must also reckon with the prospect that in the 2020’s or 2030’s, that the United States will get more serious about limiting carbon dioxide emissions, which would be a plus for nuclear operators. Substituting gas for coal does reduce emissions, but there is still far too much carbon in natural gas to allow its widespread use if the electric system is to reduce its emissions by 80 percent by 2050. CHESAPEAKE FINED $565,000 FOR 3 RELEASES INTO PA. WATERWAYS February 10, 2012 - State environmental regulators have fined Chesapeake Appalachia $565,000 for three incidents at Northern Tier natural gas well sites, including an April 2011 wellhead failure in Bradford County that released thousands of gallons of wastewater into a nearby stream. Environmental regulators found elevated levels of salts and barium at the confluence of a nearby stream and Towanda Creek on the day after the Bradford County spill but saw the contaminants decline to background levels over several days, DEP said. Chesapeake was fined a record $1.1 million by state regulators in May for a series of water contamination incidents and a well-site fire that injured three workers in 2010 and 2011. U.S.
ENERGY CZAR TOUTS NATURAL February 10, 2012 - Describing the drilling process as environmentally sound, U.S. Energy Secretary Steven Chu on Thursday championed natural gas production in a city that banned the practice more than a year ago. Mr. Chu, the nation's top energy official since 2009, toured the National Energy Technology Laboratory in South Park and then stopped in Pittsburgh to laud Mayor Ravenstahl's use of a $3.4 million Energy Department grant. During a news conference in the mayor's office, Mr. Chu raised the issue of natural gas production, saying the resource must be developed for economic and national security reasons. He spoke just steps from where city council, concerned about the environmental and health impacts of gas drilling, adopted a citywide ban on production in 2010. "The long story short is, we believe it can be done in an environmentally responsible way," Mr. Chu said.
SPRING BROOK LAWMAKERS February 10, 2012 - Lawmakers approved a revision of township zoning rules Thursday night to prohibit natural gas drilling in a large swath of the community while setting aside designated areas for commercial wind farms. Under the change, about half the township is off-limits to gas drilling, while in the other half gas drillers would be subjected to restrictions on noise and lighting and regulations governing which roads could be used to access wells. At the same time, local lawmakers acknowledged they don't know how their changes would fare under a state bill that seeks to establish a county-option Marcellus Shale drilling impact fee and state review of local drilling ordinances.
Shale Gas News February 9 2012 PENNSYLVANIA 'SELLS OUT' WITH COMPROMISE SHALE BILL February 9, 2012 - Yesterday in the Senate and today in the House, the Pennsylvania legislature voted in favor of HB1950, a compromise gas development bill that was hammered out behind closed doors under the heavy hand of Governor Tom Corbett. Under the guise of providing “impact fees” to municipalities where gas operations occur, the legislature effectively supported a takeover of municipalities by the State and the gas industry by gutting established and effective local planning and zoning rights. Through provisions contained in the bill, municipalities will no longer be able to play a central, critical role in protecting the health, safety, and welfare of residents and determining which uses of land are most beneficial. The bill requires that all types of oil and gas operations (except for natural gas processing plants)—unlike any other commercial or industrial business—be allowed in all zoning districts, even in residential neighborhoods and near schools, parks, hospitals, and sensitive natural and cultural resource protection areas. As a result, people could be forced to live only 300 feet away from a gas well, open frack waste pit, or pipeline, despite growing evidence that such development causes pollution, damages health, and lowers property values. Press Release Pa. House vote Pa. Senate vote GAS
DRILLING MAY BE LEAKING TWICE February 9, 2012 - New research says gas drilling may be emitting far more methane and other pollutants into the atmosphere than current estimates suggest. The work, performed by scientists with the National Oceanic and Atmospheric Administration, focused on Weld County, Colo., home to more than 20,000 gas wells. After years of monitoring and study, the researchers estimated that about 4 percent of the methane produced by these wells is lost to the atmosphere. That's about twice as much as current estimates would suggest, and twice what the EPA assumes is lost nationally during gas drilling and production. Methane accounts for about 10% of greenhouse gas emissions nationwide. Leaks during the drilling, production and transmission of natural gas are the largest source, accounting for about a third of all man-made methane emissions. In addition to methane, the researchers also found surprisingly high emissions of benzene, a carcinogen, and other pollutants.
WYOMING TOWN FEARS FRACKING February 9, 2012 - The driver stacks up pyramids of five-gallon bottles at 19 stops. Encana Corporation, an energy company, provides the water. It's the only way disabled veteran Louis Meeks can stay on the land he bought back in the 1970's, when his water wells pumped sweet life into the place. No more. It gives off a pungent, petroleum smell. His neighbor, Jeff Locker, says doctors as far away as Denver have been unable diagnose his wife's strange illness. "My wife got really sick six years ago," Locker said. "Extreme neuropathy. She describes it as someone sticking knives through her shin bones." "They got problems out here," said Meeks, who has also worked in the oil fields. "Big problems, because everything is intermingled." WHO
IS PROTECTING OHIOANS February 9, 2012 - The watchdog group, Common Cause, has studied the lobbying and campaign contributions made by the gas and oil industry. It found in the last ten years, the industry has spent $747 million lobbying lawmakers and making campaign gifts. House Speaker John Boehner got almost $187,000. Former Congressman and now-Governor John Kasich got about $214,000. Ohio House Speaker William Batchelder got more than $71,000. James Browning of Common Cause says the donations are made to get access, influence and to minimize regulations. "There's a very strong incentive to get the wells in the ground and get the money out....the biggest thing the fracking industry wants is to frack first and ask questions later," he said. Innovation Ohio claims Ohio's tax on natural gas and oil is "laughably low, the second lowest in the country," according to Butland. PA. SHALE GAS RULE BILL HEADS TO GOVERNOR February 9, 2012 - "When you remove zoning and land use at the local level, there's really nothing else for a municipal government to do," said Brian Coppola, a supervisor in Robinson in Washington County, one of the municipalities considering legal action. "You've turned a whole system upside down, not just the drilling. ... It's gutting our entire system. It's a big deal." State courts have affirmed that municipalities have some control over where and when drilling can occur. But this bill would largely strip that, allowing the right to drill everywhere, including residential areas, as long as drill pads are at least 300 feet from a house and wellheads are 500 feet away. In four years of drilling from the beginning of 2008 to the end of 2011, drillers had about three state environmental violations for every four wells. Story Political contributions in Pennsylvania
FIRST ‘FRACKY AWARD’ February 9, 2012 – Anti-natural gas drilling activists handed out the first “Fracky” award to the American Petroleum Institute for what they charge is its role in endangering the environment. The oil and gas industry association won, the activists declared, for “spinning the benefits of fracking (natural gas drilling) so hard that some people actually believe that gas is a bridge fuel to renewable.” "Today the fossil fuel industry wins the Fracky at great cost to our air, water and forests," David Pringle, campaign director of the New Jersey Environmental Federation, said. "However the real awards ceremony is across the street at the Statehouse beginning tomorrow. Will the winner be dirty air and well-financed special interests or clean water and the state of New Jersey?
COAL, OIL AND GAS ALL February 9, 2012 – Belmont and Monroe County landowners, as well as natural gas and oil companies, hope the Ohio Department of Natural Resources will allow drilling in the liquids-rich Utica Shale formation to proceed. However, a dispute regarding plans to conduct coal mining operations in these same areas may delay the drilling plans of companies like Chesapeake Energy, XTO Energy and Hess Corp. to drill on land they paid as much as $5,200 per acre to lease. Robert Edward Murray of Murray Energy, said in December, "Our coal ownership is superior to any oil and gas leases," adding that the company seeks to protect the "jobs we provide from indiscriminate drilling for oil and gas."
SHALE BILL HEADS February 9, 2012 - It's not the severance tax sought by Democrats and opposed by the Republican governor. Nor will the impact fee strictly benefit the counties where drilling occurs, as some Republicans preferred. Instead the final plan is a hybrid of several approaches, under which counties decide whether to impose the fee, a state agency collects the dollars, and a bevy of agencies and programs benefits from the revenue. The legislation passed the House on Wednesday, 101-90, after having passed the Senate on Tuesday, following a conference committee meeting -- where the negotiated bill got its first public viewing -- the day before. The largest ripples from the bill will be felt by local officials, who will be forced to rewrite strict drilling ordinances or find themselves locked in costly legal battles. PA.
DRILLERS CITED FOR 3,300 February 9, 2012 - Marcellus Shale drillers in Pennsylvania were cited for more than 3,300 violations of state environmental laws in the past four years, according to a tally released Wednesday by the environmental organization PennEnvironment. The data, compiled from state records, revealed a wide array of violations committed by 64 different companies. More than two-thirds of the violations were for problems likely to have an environmental impact. Erosion and sedimentation problems were the most common source of environmental violations, with 625 citations, followed by faulty pollution prevention controls (550), improper waste management (340), and pollution discharges (307). PA.
HOUSE APPROVES February 9, 2012 – Pennsylvania is a signature away from imposing a fee on natural gas extraction in the Marcellus Shale. After three years of debate and false starts, the House voted, 101-90, Wednesday to approve a compromise plan for a "local impact fee" on natural gas drillers. With the Senate's approval in hand, the measure goes to Gov. Corbett, who said he would sign it. "This is the largest corporate giveaway in Pennsylvania history," House Minority Leader Frank Dermody said Wednesday. The compromise was months in the making and for several hours yesterday appeared headed towards defeat as Republicans who control the House hustled to garner votes. In the end, they mustered a slim majority, showcasing again the difficulties of reaching consensus on how best to deal with a burgeoning industry. Pennsylvania is the only major gas-producing state that does not tax natural gas production. OHIO
ATTORNEY GENERAL February 9, 2012 - Ohio's top law enforcer is advocating increased environmental sanctions on polluters in the oil and gas industry and required disclosures of the chemicals used in the drilling technique called fracking that would be among the toughest in the nation. Republican Attorney General Mike DeWine on Wednesday called for hiking civil penalties to $10,000 a day from the current maximum of $20,000 per incident. That would bring fines in line with states such as Pennsylvania, Colorado and Texas.
IMPACT FEE BILL February 9, 2012 - Rep. Eddie Day Pashinski spoke against the bill in floor debate saying it offers only crumbs to the public and a smorgasboard to the drillers. The bill lacks provisions requiring the posting of higher bonds by drillers and base-line studies of water quality, he added. House Minority Leader Frank Dermody said the bill won't prevent a repeat of the anthracite mining legacy of culm dumps, mine fires and acid mine drainage. While the House spent hours debating the bill during two days, there was intense behind-the-scenes efforts to round up the necessary votes to pass the bill. Gov. Tom Corbett and Lt. Gov. Jim Cawley were personally involved in the effort Tuesday night. Shale Gas News February 8 2012 PA. HOUSE SENDS FLAWED BILL TO GOVERNOR FOR OK February 8, 2012 -After more than 3 hours of debate today and months of wrangling over the legislation's details, a Marcellus Shale regulatory and impact fee measure is headed to Gov. Corbett. That legislation passed the state House of Representatives this afternoon on a vote of 101-90. It passed the state Senate yesterday, following a Monday evening conference committee meeting to move forward on the Republican-negotiated proposal. "It does not raise the revenues necessary to make sure the taxpayers are not left holding the bag," said House Minority Leader Frank Dermody. It now awaits the signature of Mr. Corbett, who urged lawmakers during his budget address yesterday to give their speedy approval. The measure makes the first sweeping changes to the state's Oil and Gas Act since Marcellus drilling began eight years ago. GAS
DRILLING DESTROYING February 8, 2012 - This past weekend, a friend and I took a trip up to Waterville, a small town in Lycoming County, to see this truth first hand. I had heard from other hikers that the miles of trails near Waterville are some of the most depressing around because they’re located right on top of the Marcellus Shale formation and are a hot spot for gas drilling. They were right. We hiked about three miles, and afterward drove another 10 miles on public forest roads in the area. Over this short distance, we saw three well sites on the mountaintops and two pipelines cutting directly back into the valley. From the moment we stepped out of our car at the base of the mountain, we could already hear what we would see at the top — engines revving, pipes being laid and beeps emanating from machines being put into reverse. It sounded like a highway was being constructed on the mountain top.
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HOUSE STILL ARGUING February 8, 2012 - State representatives today will continue debating a measure to overhaul Pennsylvania's gas-drilling regulations and impose a fee on those shale wells, in an effort to send the bill to Gov. Tom Corbett's desk. The legislation, which was the result of years of debate in Harrisburg and months of furious activity, passed the state Senate on Tuesday morning on a vote of 31-19. The measure was poised for passage late Tuesday, though Democratic lawmakers took their final opportunity to protest against not being included in recent negotiations, as well as note their disapproval that the bill did not have a larger assessment and broader regulations. Story HB 1950 Pa. Legislation Pa. Representatives contact information
HOUSE DEMS CITE LAX OVERSIGHT OF February 8, 2012 - Federal policing of oil and natural gas on public lands is lax and inconsistent, with only 6 percent of violations resulting in monetary fines over 13 years, House Democrats said in a report Wednesday. Fines over that time totaled less than $275,000, an amount that the Democratic staff of the House Natural Resources Committee characterized as little more than "pocket change" for oil and gas companies. The report said federal regulators issued no fines in the period studied, February 1998 to February 2011, in eight of the drilling states. The report, obtained by The Associated Press before its public release later Wednesday, said the government does little to ensure accountability or protect the environment, even as drilling on federal land has increased in recent years.
DEBUNKING THE MYTH THAT AMERICA February 8, 2012 – The advent of shale plays provided an important new source of gas. Yet this new supply is characterized by high decline rates which means that wells must be continuously drilled to maintain supply. In 2001, the U.S. natural gas decline rate was about 23% and the annual replacement requirement was 12 Bcf/d when total consumption was 54 Bcf/d. Today, the decline rate is estimated to be 32% and increased consumption of gas means that approximately 22 Bcf/d must be replaced each year. According to ARC Financial Research, $22 billion per quarter is needed to maintain domestic gas supply based on analysis of the 34 top U.S. publicly traded producers. Cash flow for those companies is $12 billion per quarter so there is a $10 billion quarterly cash flow deficit. The important factor here is that on a whole there are no retained earnings, and historically growth stems from retained earnings. Without retained earnings, companies must borrow money or sell assets into joint venture agreements to raise cash in order to drill.
GREEN GROUPS SPLIT ON February 8, 2012 - Environmental protections built into natural gas drilling legislation that passed the state Senate on Tuesday convinced some environmental groups to endorse the bill with reservations even as others rejected it wholesale as a giveaway to the gas industry. The environmental rules were often overshadowed in recent months by sparring over the bill's more controversial impact fee and local zoning provisions. But even lukewarm supporters say the bill, which has yet to be approved by the House and the governor, combined the best environmental standards included in earlier House and Senate drafts and then added more.
SIERRA CLUB OBJECTS February 8, 2012 - The Sierra Club filed a complaint with the U.S. Department of Energy claiming exports of liquefied natural gas from Marcellus shale deposits through the Cove Point LNG terminal in Maryland are bad for the environment. Deb Nardone, director of the Sierra Club's gas reform campaign, claims LNG isn't only the dirtiest type of natural gas but could result in an increase in hydraulic fracturing of shale gas deposits in the region. "The industry is pushing forward with these export facilities with their profits in mind, not the families who will bear the burden of increased fracking," she said in a statement.
COLORADO FRACKING February 8, 2012 - As oil and gas development increases throughout Northern Colorado, an Aurora lawmaker wants to require energy companies to provide more information to the state about how much water is used for hydraulic fracturing and prevent possible groundwater contamination from the practice, particularly in areas where radioactive and explosive material can be found. State Sen. Morgan Carroll, D-Aurora, is sponsoring the "Water Rights Protection Act," which, if passed, could affect future oil and gas drilling and hydraulic fracturing in eastern Larimer County where there are underground uranium deposits.
FRACKING’S TOLL ON PETS, LIVESTOCK February 8, 2012 - Smelling gas one morning, a southern Pennsylvania farmer almost passed out when he went outside to check on his bellowing cows. One of the animals did keel over, kicking its feet in spasms. A couple of days later, a calf was fighting for its life, the farmer said. It died. Something awful is happening over the Marcellus Shale, the vast geological formation in eastern North America where energy companies are looking for natural gas. Hydraulic fracturing, or fracking, a process for extracting gas by injecting high volumes of water and chemicals into deep wells, has sparked complaints about ruined landscapes and fouled groundwater. Increasingly there is evidence, mostly anecdotal, that animals are suffering. OHIO
GOVERNOR DEFENDS February 8, 2012 - Gov. John Kasich didn't flinch when natural gas opponents disrupted his State of the State address Tuesday - he just kept talking about the jobs MarkWest Energy's processing plants are expected to bring to the area. While Kasich did not speak much of the multibillion-dollar Royal Dutch Shell ethane cracker, officials in his administration said after the speech they remain confident the state is in a prime position to land the planned cracker. More than 100 anti-fracking protesters greeted the Ohio State legislators and invited guests entering the Steubenville High School/Wells Academy Elementary School complex Tuesday. Though the governor spoke for nearly an hour on a variety of topics with no interruptions, as soon as Kasich began speaking about natural gas topics, the protesters took action. Kasich said that major gas drillers are responsible, noting he would not allow an irresponsible "yayhoo" to ruin the industry's reputation. Story No permits at all (6:18 video) MarkWest flaring (3:50 video)
UTICA SHALE DEALS LEAPT February 8, 2012 - Seven deals involving the Ohio oil and gas formation totaled $6.7 billion in 2011 -- a huge increase from the single transaction worth $178 million in 2010. The liquids-rich formation that overlaps and borders the Marcellus Shale benefited from increased interest in oil-rich regions, which become more lucrative when natural gas prices fall as they have in the past year. Still, oil and gas activity in the United States in 2011 jumped nearly $50 billion, with 191 deals accounting for $186.5 billion spent. There was a similar trend among foreign investors in American oil and gas. In 2011, foreign buyers completed 40 transactions worth $56.4 billion. That's five fewer than in 2010, but a 55 percent increase in deal value. Story Marcellus Air - Panhandle of West Virginia NY
OFFICIAL: February 8, 2012 - The industry and landowners with gas leases have been urging DEC to wrap up its review and start granting permits, while environmental groups have called for a more extensive review and more rigorous protections to prevent problems seen in other states, such as water contamination. Some groups are calling for an outright ban, saying accidents in other states show regulation is ineffective. Sweeney, a Long Island Democrat, has sponsored a bill calling for a moratorium on fracking until June 2013 to allow more time for study. Another bill in the Senate and Assembly would ban the practice. Shale Gas News February 7 2012
CHARTING THE US GOVERNMENT’S February 7, 2012 - Fracking has only recently become a household word, but government involvement with the drilling technique goes back decades. President Obama has championed the potential of natural gas drilling combined with more regulation. While there has been mounting evidence of water contamination, few regulations have been implemented. The graphic below traces officials' moves -- and levels of caution -- over time. PA SENATE PASSES MARCELLUS LEGISLATION February 7, 2012 - The state Senate passed a Marcellus Shale regulatory and impact fee measure this morning, sending the plan for a final vote in the state House of Representatives. Among other changes, it would boost penalties and setbacks from waterways, require more disclosure of hydraulic fracturing chemicals, and mandate more comprehensive containment procedures for spills. It also would prohibit municipalities from regulating drilling activities more stringently than other industrial activities if they want to remain eligible for the fee revenues. The state Public Utility Commission would review those local ordinances upon request, and rule whether they are reasonable based on state-proscribed guidelines. Localities may ban drilling in residential areas if they are so densely populated that no well site can be placed where the wellhead would be 500 feet away from a building. PA.
SENATE PASSES COMPROMISE February 7, 2012 - “It is a dark day for all Pennsylvanians,” said Todd Miller, a town councilman from South Fayette Township, who has opposed the legislation. “We have been sold out to the gas industry, plain and simple.” The bill was a compromise of previous versions produced by the House and Senate last year. Nine Senate Republicans had raised concerns in a letter last month about the lack of local control. All but one ended up voting for the bill, though critics maintain that the compromise did not restore much in terms of local land control. Myron Arnowitt, the state director for Clean Water Action, an environmental group. called the bill “a huge step backwards.” He estimated that 100 to 200 municipalities with zoning laws already in place would now be open to question. “Overriding local zoning is a very bad trade,” Mr. Arnowitt said.
SEISMIC TESTING BEGINS AT February 7, 2012 - Seismic testing has begun to determine the potential for Marcellus Shale drilling in north-central Pennsylvania's Elk State Forest. An oil and gas forester for the state says the DCNR owns less than 25 percent of the land being surveyed. The Bradford Era reports Tuesday that the testing began Saturday and is being performed in an 11-square-mile area including Hicks Run, which contains the core of the state's elk population.
FINAL PA. IMPACT FEE BILL February 7, 2012 - A bill that establishes a county-option Marcellus Shale drilling impact fee and provides some revenue for statewide environmental programs cleared a hurdle Monday with approval from a special legislative committee. The Senate plans to vote on the bill this morning, and a House vote could come later today. A drilling operator could ask the state Public Utility Commission to determine whether a zoning ordinance is reasonable or not. If the PUC or state courts reject an ordinance, a municipality couldn't collect impact fee revenue unless they changed it. "It (bill) is turning 300 years of local zoning rights upside down," said Mr. Yudichak. Story Pa. Senators contact info Pa. Representatives contact info PA. SHALE DRILLING BOOM HURTS HOMELESS VETERANS February 7, 2012 - The ranks of homeless veterans are growing, and a state Senate committee Monday heard testimony that the Marcellus Shale industry is making the problem worse. Several witnesses testified one major reason for the increase in homelessness lies with the gas drilling industry, which drives up rents and makes affordable housing more scarce. More veterans seeking shelter are young – men and women in their 30s. Monsignor Joseph Kelly testified the VA estimates there are nearly 68,000 homeless veterans nationwide, with more than 5,000 of them women. “The need is extraordinary,” Kelly said. “The Scranton area homeless population has risen due to the Marcellus Shale housing crisis. Shale (area) residents no longer are able to afford living in the region. Recent estimates put the number of homeless veterans in Pennsylvania at around 1,400.
TEXAS PANEL WANTS FRAC February 7, 2012 - Denton’s official gas drilling task force voted Monday to require some drillers to recycle water used in hydraulic fracturing but narrowly rejected new regulations for well casing and cementing. Chesapeake Energy has said it uses an average of 4.5 million gallons to fracture a typical horizontal deep shale gas well. The action followed the task force’s votes last week endorsing a ban on open waste pits at drilling sites, baseline testing of nearby water wells, and an expansion of a city ban on wastewater disposal wells into areas of the city’s extraterritorial jurisdiction. “There is no peace of mind where there is fracking,” said Ricardo Correa, a University of North Texas student pursuing a doctorate in physics. “The political system may be rigged, but there is still a way for us to influence it.”
LOUISIANA OFFICIALS CANCEL February 7, 2012 - This Total Maximum Daily Load report is part of the Clean Water Act which requires states to assess water bodies and watersheds to determine the maximum amount of pollution that water body can take and still meet water quality standards. Originally, DEQ was developing a plan for Bayou Manchac that included Bayou Fountain, Ward Creek, Ward Creek Diversion Canal, Welsh Gully, Cotton Bayou and Muddy Creek in an area of southern East Baton Rouge Parish and northern Ascension Parish. OHIO
REP. OUTRAGED BY TAX February 7, 2012 - State Rep. Robert F. Hagan of Youngstown, D-60th, expressed outrage Monday with a news report that Ohio’s oil and gas companies are paying taxes on the extraction of the natural resources based on an honor system. “This is a real failure of government,” Hagan likened the system to allowing the general public to decide how much they should pay in taxes. “Let’s put Ohio taxpayers on the same playing field as the oil and gas companies,” he said. “We will take Ohioans for their word on what kind of money they make, just as we currently do with oil and gas drillers.” GAS
DRILLING FEE MOVES February 7, 2012 - Pennsylvania's lawmakers could vote as early as today on a bill calling for an impact fee on the natural gas industry. State Sen. Jim Ferlo, D-Highland Park, said the bill produces a "laughable" amount of revenue and lambasted Republicans for moving the bill too quickly. "This will be a battle royal that will be continued," Ferlo said. "I hope and pray some folks will come to their senses about what we`re shoving down people`s throats." The bill has also drawn criticism for superseding oil and gas laws municipalities passed to regulate where and when companies can drill. The bill would allow drilling even in residential zones, as long as wellheads are at least 500 feet from residential buildings. Dozens of Western Pennsylvania municipalities have said they oppose the measure and some have threatened to sue if the rule goes through.
IRISH COUNCIL GETS February 7, 2012 - ‘No applications have been received to carry out hydraulic fracturing for shale gas in Northern Ireland, nor is any petroleum lincensee likely to be in a position to submit such an application for at least 18 months, so it is premature to draw any conclusions about the regulatory control of such activities. ‘The two companies, who hold petroleum licences in Moyle District Council area, are focussing their exploration on conventional oil and gas targets in Permo-Traissic sandstones similar to those that form the reservoirs in the long-established East Irish Sea and Southern North Sea gas basins. Shale Gas News February 6 2012
INDUSTRY SLAMS FEDERAL PLAN February 6, 2012 - The oil and gas industry is attacking a leaked draft of government rules that would require companies to disclose the chemicals they use in hydraulic fracturing on federal lands. Adam Fetcher, an Interior spokesman, defended the impetus for the rules. "It is essential that the public have full confidence that the right safety and environmental protections are in place," he said in a statement. The Interior Department’s Bureau of Land Management has drafted a rule that would require companies to reveal the trade names and purposes of fracturing fluid additives and to name the specific chemicals involved and the volumes they plan to use. The rule also contains a trade-secret exemption if companies can show state or federal regulations protect the information from public disclosure.
COLORADO 1,000-FOOT DRILLING February 6, 2012 - A bill requiring oil and gas wells to be drilled at least 1,000 feet from nearby schools or homes in Colorado died Monday when the state House Judiciary Committee voted 8-3 to postpone indefinitely further hearings on it. Supporters of the bill said the 1,000-foot setback requirement was needed to protect the public’s health and safety. They also criticized the state for allowing minimum requirements to be 350 feet in urban areas. The three-hour hearing on House Bill 1176, sponsored by Rep. Su Ryden, offered the first glimpse of the broad outlines of the Legislature’s 2012 fight over oil and gas operations in Colorado, and how the state’s new Niobrara oil boom has stirred concerns along the populous Front Range. TENTATIVE DEAL ON PA. SHALE GAS FEE February 6, 2012 - After months of wrangling behind closed doors, Gov. Corbett and Republicans who hold the majority in both legislative chambers have reached a tentative agreement to impose a fee on the extraction of natural gas from the Marcellus Shale. The so-called "local impact fee," which could be voted on as early as this week, would fluctuate depending on the price of natural gas and, starting in 2013, on the rate of inflation, according to a summary circulated to Republican senators during the weekend. ‘CORBETT TAX’ FOR PA. CITIZENS, BUT NOT FOR GAS DRILLERS? February 6, 2012 – The state is suddenly insisting that taxpayers report their online purchases and pay the 6% sales tax on those items. The basic idea of the “use tax,” which includes paying for items bought online or anywhere else outside the state, is a good one. It levels the playing field between online retailers and physical stores in Pennsylvania. This from the governor and Legislature that refuse to tax Marcellus Shale — a move that could bring the state hundreds of millions a year — or even smokeless tobacco products. Pennsylvania is the only state that doesn’t tax smokeless tobacco. Doing so could generate about $40 million.
DISCREPANCIES RUN DEEP February 6, 2012 - As Ohio prepares to usher in a multibillion-dollar gas-drilling industry, the state relies on an honor system to collect taxes and fees from well owners — and the numbers don’t add up. Well owners are required to report the amount of natural gas they “sever” from the earth and file severance-tax returns each quarter. No one has an explanation for the disparities in what represented a $2 million revenue stream in 2010. The variations were wide, with ODNR’s annual production numbers 3 percent to 15 percent below those of the association. In 2010, it was the opposite: ODNR reported more production than did the association. The oil-and-gas industry said it expects to drill nearly 4,000 wells in Ohio in the next four years. DEAL
AT HAND ON SHALE February 6, 2012 – A deal between Republican lawmakers and Gov. Tom Corbett on a Marcellus Shale regulatory and impact fee measure is nearly complete, with summaries of the expected compromise plan circulating among lawmakers over the weekend. Top legislative and administration aides said action on that final plan could begin as soon as today. A bipartisan General Assembly conference committee still must be formed to approve the plan, followed by final votes in both chambers, before it can reach the governor's desk. Staffers were in the Capitol on Sunday afternoon and evening for some final revisions. The bulk of the framework detailed to rank-and-file lawmakers is expected to remain the same, though local zoning rights is one issue that remains in flux. MOST
CANADIANS WANT MORATORIUM February 6, 2012 - The majority of Canadians oppose hydraulic fracturing and would support a moratorium on the natural gas extraction method, according to a new poll. The Environics Research poll, commissioned by the Council of Canadians, found that 62% of the Canadians polled supported a moratorium on all fracking for natural gas until all federal environmental reviews are complete. British Columbia residents were most likely to support a fracking moratorium, at 67 per cent. B.C. was followed by Atlantic Canada, where 66 per of those polled supported a moratorium, and then Ontario (65 per cent), Manitoba/ Saskatchewan (64 per cent), Alberta (57 per cent) and Quebec (55 per cent). "The poll results send a strong message that Canadians are really wanting the federal government to put in place a moratorium until the reviews are complete.
EXXON LIKES UTICA SHALE February 6, 2012 - The world's largest publicly traded oil company has leased more than 26,000 acres for drilling in Belmont County. In fact, the acreage - which is in the name of Exxon's natural gas producing subsidiary, XTO Energy - came to Exxon in the form of 1,216 separate lease agreements on file in Belmont County Recorder Mary Katherine Nixon's office. Unlike the December deal that saw Exxon acquire about 13,200 previously leased acres in Monroe County from Ohio-based Beck Energy Corp., the 26,000 acres in Belmont County are all brand new leases for acreage that had never been leased. Many of the Belmont County property owners signing with Exxon/XTO agreed to receive lease payments of $4,950 per acre with 19% payments on production royalties.
HECTOR, NY RESIDENTS TELL February 6, 2012 - Scores of Hector residents pleaded to their reluctant town board to ban or place a moratorium on hydraulic fracturing at a public hearing Saturday morning, and they were encouraged by more than 200 of their neighbors, who cheered the speakers. Most spoke of their aversion to the practice's potential to contaminate groundwater with toxins, or the heavy industrialization that can accompany drilling. "I do not want to have my community forever changed by the inevitable ravages of hydrofracking," said resident Denise Teeter. "I do not want to contend with the heavy truck traffic, the health risks, and the impact of noise."
THROOP, PA. LANDFILL PLANS February 6, 2012 - Keystone does not expect the cuttings to change the chemistry of the landfill's wastewater, called leachate, which is treated then discharged through sewer lines to the Scranton Sewer Authority. "Given that this process is the first of its kind in Pennsylvania, there is not data on the exact makeup of the wash water that will be collected, stored and disposed of as a result of Keystone's drill cuttings processing facility," the landfill wrote in its application. Marcellus cuttings can contain elevated levels of naturally occurring metals and radioactive material, including radium-226. The radiation monitor that screens all incoming waste loads at the landfill was triggered at least 19 times between July and November, but none of those incidents involved drill cuttings, a DEP spokeswoman said. Story Scranton Sewer Authority Radioactive shale PA.
LAWMAKERS NEAR VOTE February 6, 2012 - One key provision would provide a share of the statewide revenue to the Department of Community and Economic Development through 2013 that could be used to encourage the building of an ethane processing plant in Western Pennsylvania or help investment in Eastern Pennsylvania refineries. The proposal calls for providing 60 percent of the revenue raised from the fee to local governments impacted by drilling. Of that share, 37 percent would go to host municipalities, 36 percent to host counties and 27 percent to other municipalities in host counties. According to the draft language, the remaining 40 percent of the revenue would go to statewide projects.
OGLEBAY PARK, WV NEIGHBORS February 6, 2012 - A number of factors are involved in piecing together a drilling unit such as the "Timmy Minch" unit in Ohio County, Chesapeake Energy officials said. The unit consists primarily of acreage from Oglebay Park, along with 26 other property owners. Some residents have expressed concern that once drilling begins later this year, there will be a risk of methane or other chemicals being released into the environment near or in Oglebay Park. Others worry that Chesapeake may drain the gas from their property - even if they do not have a lease with the energy company. Story Timmy Minch Northwest Unit (PDF offsite) Shale Gas News February 5 2012 N.J.
TAKES SECOND SHOT February 5, 2012 - New Jersey Democrats will try for a second time to prohibit fracking for natural gas in the most densely populated U.S. state, after Governor Chris Christie vetoed a ban in August and lodged a one-year moratorium. While New Jersey produces no natural gas, the Utica Shale formation, a largely unexplored deposit running from Ontario, Canada, to Tennessee, runs under Warren and Sussex counties in the state's northwest. A ban would head off future fracking in an area that provides almost half of New Jersey with drinking water. OHIO
UNIVERSITY REVIEWS LAND February 5, 2012 - Ohio University is currently looking at all the land it owns, to let the state know which of it may be available for oil-and-gas drilling. It is doing so in response to a new state law passed last year that opened up most lands owned by state entities, including state universities, to such drilling, and created a new state board to oversee and facilitate such leasing. An OU environmental organization, meanwhile, has been sending the message to the university that it would like to see a policy of no drilling on any of its land, as well as a commitment to avoid the use of any fuel extracted with the horizontal hydro-fracking method. OU senior Tyler Barton, a member of OU Students Against Fracking, said the group has set itself three main goals.
PUBLIC HEALTH IMPACTS OF MARCELLUS February 5, 2012 - Uncertainty prompts me to write that as a doctor I do not know what to tell Pennsylvania patients when they ask me if fracking in their neighborhood or region might affect their health. I’ve seen anecdotal stories in the media. I’ve read as much as I could find about how the hydraulic fracturing process works. But I’m still uncertain because we lack data and research on the matter. The basic question for physicians is not which side to pick for or against fracking, but rather to ask are we doing a good enough job being watchdogs for public health in these regions? As physicians, we also are scientists. We highly value evidence-based research as the basic tool we need to better assess and treat our patients and to be better advocates for protecting the community’s health. NY COUNTY HEALTH DEPT. WANTS TO EDUCATE RESIDENTS ABOUT WATER TESTING February 5, 2012 - The state Department of Environmental Conservation (DEC) hasn’t started issuing oil and gas drilling permits for the Marcellus Shale area. Still, the Allegany County Board of Health wants to take a “pre-emptive” measure to help public and private well owners who may be worried about their water quality if drilling goes forward, said county Environmental Health Director Thomas Hull. Hull said the Board of Health will vote at its meeting Monday on some testing recommendations for public and private wells. The meeting is scheduled for 7 p.m. in the health department conference room. He said at this point, the well owners would be responsible for the testing costs.
VIRGINIA COUNTY SAYS ‘NO’ TO MORE February 5, 2012 - Carrizo Oil and Gas had every reason to believe this rustic town in the foothills of the Blue Ridge Mountains was an ideal place to build Virginia’s first well to explore for natural gas in the state’s Marcellus Shale. All it needed to start the job was a special land-use permit from the four Republicans and one Democrat on Rockingham County’s Board of Supervisors. Carrizo didn’t even come close. Concerned about controversial drilling methods, the supervisors never voted on the permit, and recently the company shelved its application following a two-year pursuit, ending its immediate hopes of exploring for gas. The rejection in Rockingham County was yet another hard knock against companies trying to extract natural gas from the Marcellus Shale closest to Washington, DC. Negative publicity about water contamination at drilling sites is raising concern even among those who support gas exploration. OUTDOOR GROUPS URGE PA. GOV. TO UPHOLD MORATORIUM February 5, 2012 - Pennsylvania's 20 state forests encompass more than 2.2 million acres, giving residents year-round access for pursuits such as hiking, snowmobiling, boating, hunting and fishing. But with a budget shortfall looming in Harrisburg and the Marcellus Shale industry expanding in the region, sportsmen say they are worried. Their concern: balancing the books at the expense of shrinking state forest areas. In a letter addressed to Pennsylvania Gov. Tom Corbett ahead of Tuesday's state budget address, advocates from organizations including Trout Unlimited, National Wildlife Federation, Pennsylvania Forest Coalition and United Bowhunters of Pennsylvania are asking him to honor the moratorium then-Gov. Ed Rendell placed on new drilling operations in October 2010.
ACTION ON GAS IMPACT February 5, 2012 - "It will be disastrous if they pass them they way they are," said Andy Schrader, a Cecil Township supervisor. Schrader has been joined by Robinson Township Supervisor Brian Coppola and officials from such communities as Peters Township in Washington County and Upper Burrell and South Fayette townships and Jefferson Hills in Allegheny County. In the state legislative contingent from Washington and Greene counties, state Sens. Tim Solobay, D-Canonsburg, and John Pippy, R-Moon, supported the Senate bill when it came up for a vote in November, and state Sen. Richard Kasunic, D-Dunbar, voted against. In the House, state Reps. Bill DeWeese, D-Waynesburg, Jesse White, D-Cecil, Brandon Neuman, D-North Strabane, and John Maher, R-Peters, voted against it. State Rep. Pete Daley, D-California, didn't vote. Story Pa. HB 1950 Text Pa. HB 1950 Senate Amendments Pa. Municipal officials oppose Senate Bill 1100 & House Bill 1950 (YouTube 30:00)
DOMINION PLANT CONSTRUCTION February 5, 2012 - In addition to the 70-acre Natrium plant, Farrell said the Appalachian Gateway pipeline project, designed to transport natural gas from West Virginia and Pennsylvania to markets across the eastern U.S., should be in service later this year. The pipeline facilities - starting near the Ohio River in southern Marshall County and traveling eastward toward the Pittsburgh area - will include construction of about 110 miles of 20-inch, 24-inch and 30-inch diameter pipeline between West Virginia and Pennsylvania, as well as four new gas compressor stations to add about 17,000 horsepower. Story Marcellus Air - West Virginia Compressor stations Shale Gas News February 4 2012 February 4, 2012 Issue (PDF-offsite) O&G
WORKERS: CANADIAN WELL February 4, 2012 - A lot of people in Calgary's Rocky Ridge neighbourhood work in oil and gas, but many say a planned well for the northwest suburb is too close to home – literally. Based on a letter to the Rocky Ridge-Royal Oak Community Association, it looks as if Alberta Premier Alison Redford won't intervene. Redford said the proposed oil well has passed, or is passing, all regulatory hurdles. “Having an oil well out in the country is different from having an oil well inside your bedroom,” Durrani said. The well will be about 500 metres from the nearest house and closer to a shopping centre. Homeowners are worried about health and safety, as well as a drop in property values. Kaiser Exploration Ltd.'s general manager, Ned Beattie, said the installation will meet or exceed all safety requirements.
COLORADO MAY RESTRICT DRILLING February 4, 2012 - Proposed drilling on a former bombing range that contains unexploded munitions and a landfill prompted Colorado lawmakers this week to introduce a bill that would require rules for fracking near toxic-waste sites. The Niobrara Shale formation extends from southeastern Wyoming through northeastern Colorado and underneath the range, which includes the Aurora Reservoir, which provides recreation and drinking water for nearby residents. The U.S. Army Corps of Engineers is working to clean up potentially hazardous military munitions on the 92-square-mile range. Carroll’s bill would require Colorado’s Oil and Gas Conservation Commission to establish rules for hydraulic fracturing near radioactive materials and Superfund sites. It joins a second bill introduced in the Colorado House that would require the conservation commission to adopt rules mandating that oil wells that are hydraulically fractured be set back at least 1,000 feet from a school or residence. IRISH ANTI-FRACKING DEMONSTRATION IN ENNISKILLEN February 4, 2012 - About 100 people have gathered in Enniskillen to demonstrate against the use of fracking to extract gas from shale rock in County Fermanagh. Earlier this week an exploration company said there could be enough gas to guarantee natural gas supply for Northern Ireland over 50 years. However, the process has proved controversial elsewhere. In Lancashire, it has caused small earthquakes and in America, water has been polluted. Last December, Northern Ireland Assembly members called for a stop to fracking. They backed a call for a moratorium on onshore and offshore exploration and the withdrawal of licences by 49 votes to 30. It is not clear if the vote will have any effect on how the executive decides to proceed. 2 HUGE PA. GAS PLANTS EXPAND IN WASHINGTON AND GREENE COUNTY February 4, 2012 – MarkWest leaders believe building these plants will allow them to claim the two largest fractionation complexes in the northeastern U.S. MarkWest Energy will more than double the capacity of its Majorsville processing plant in eastern Marshall County by the end of next year. The Denver, Colo.-based company will also build totally new processing plants on the western side of the Ohio River in Monroe and Harrison counties. The project at Majorsville calls for MarkWest to increase processing capacity from 270 million cubic feet of gas per day to 670 million cubic feet per day next year. Consol Energy, Noble Energy and Range Resources have agreed to supply gas to the Majorsville complex. Ethane, butane, propane and pentane recovered by MarkWest go to the company's Houston, Pa., marketing and storage complex. Story MarkWest Houston Plant Video of Majorsville plant SEN.
CASEY PLANS BILL TO PROMOTE February 4, 2012 – U.S. Sen. Bob Casey announced plans Friday to introduce a new bill to create and extend incentives for using natural gas as a vehicle fuel. The NGEAR Act would create a rebate of up to $15,000 for buying public transit or school buses that run on alternative fuels and extend tax credits for using alternative fuels or building refueling stations through 2016. The incentives would apply to alternative transportation fuels other than natural gas, but Mr. Casey emphasized the bill as a way to create new uses for natural gas pulled from Pennsylvania.
CABOT ADMITS ITS DIMOCK WATER February 4, 2012 - Cabot said the arsenic reading didn’t come from the Dimock water, but rather from the Montrose public water system in water delivered to Dimock residents. Pennsylvania American Water, which owns the Montrose public water system, said that was bunk. Their water doesn’t contain any arsenic, they said. Cabot stood by its claim. Then it didn’t. On Friday, Cabot announced, “Our review found a transcription error revealing that the values for arsenic and barium were transposed in the report. There was no arsenic found in this sample from the Montrose public water supply. We apologize for this error.” BILL
WOULD SET LIMITS ON February 4, 2012 - Two Allegheny County councilmen will introduce legislation on Tuesday that would create a registry of permits issued for Marcellus shale gas well sites and set restrictions on where drilling operations can be situated on county-owned property. The bill creating the registry is designed to make sure "people are informed as quickly as possible when a permit has been issued for a well," said Councilman John Palmiere, D-Baldwin Township, the measure's sponsor. "All I want to do is make sure that the county provides the information about where wells will be located so residents aren't running around in the dark trying to find out whether there will be a gas well in their neighborhood," Palmiere said. Shale Gas News February 3 2012
CHESAPEAKE-RELATED DONATIONS February 3, 2012 – The Sierra Club’s president has acknowledged in a blog post that beginning five years ago, the club accepted $26 million from people connected with Chesapeake Energy, the country’s second-largest natural gas producer. He added that the club had turned down $30 million pledged by those donors since August 2010. Some club members reacted to the news with outrage — one response to Mr. Brune’s post called the club “as corrupt as the worst politicians” — but many praised him for banning further donations. The donations were first reported by Time and the blog Corporate Crime Reporter.
TEXAS FIRE CHIEF TO REQUEST February 3, 2012 - Fire Chief Don Crowson plans to ask the City Council to impose an annual fee of $2,400 per gas well to help pay for additional firefighters, specialized training and equipment that he said is needed to prevent and better respond to incidents at well sites. If approved, the city-run program would be the first of its kind in the Barnett Shale, Crowson said. The number of permitted gas wells in Arlington has grown from just a handful in 2007 to more than 300. "Natural gas wells are 24/7 issue for us. If something does happen, we are the ones that get the call," Crowson said. "We want to be in a better position to deal with these issues than we are currently are."
‘GASLAND’ DIRECTOR JOSH FOX February 3, 2012 – The battle between "Gasland" director Joshua Fox and Republicans in the House who support fracking has now turned into a tussle over the First Amendment. Fox was arrested by Capitol police on Wednesday and charged with unlawful entry when he walked into a congressional hearing on the controversial practice of hydraulic fracturing, or fracking, a method of extracting deposits of natural gas which Fox criticized in his Oscar-nominated film. “This is part of a pattern of obstruction of us and documentary filmmakers in general in Congress that should not continue,” said Fox. “We have permission [to take video],” Fox continued. “We have permission granted to us by the Bill of Rights. Just because we’re not a typical Hill reporting outfit, they should not be allowed to obstruct us.” Ironically, much of this episode was captured on cellphone video made by other observers or possibly even congressional staffers. Story YouTube of Josh Fox on the Ed Show 2-3-12 CUYAHOGA COUNTY TOPS OHIO IN NEW GAS WELLS DRILLED February 3, 2012 - Figures aren’t compiled yet for last year, but Cuyahoga County led the state in the number of natural gas and petroleum wells drilled in 2010. This “Gold Rush atmosphere” also precipitated a record turnout of more than 150 Jan. 29 for the latest in the Forums that Matter series. Representatives from the oil and gas industry were invited to participate in the forum, but declined to attend, said Unitarian Church spokeswoman Susan Alcorn, of Cleveland Heights. Zeng said he has also encountered difficulties interacting with local scientists on research. When he asked things like, “What kind of fluid is being injected?,” he learned it was a trade secret. “The data is also very hard to find on accidents,” Zeng added. OHIO
EPA ISSUES FINAL February 3, 2012 - Ohio EPA has issued a final air general permit to cover production operations at shale gas well sites. The general permit will ensure the air around production sites are safe while providing business with the most efficient option to get operations up and running. Applicants who meet the qualifying criteria, terms and conditions of the general permit can expect to receive Ohio EPA's approval within weeks of applying. The general permit covers a variety of emissions sources found at most shale gas well sites, including internal combustion engines, generators, dehydration systems, storage tanks and flares. It contains emissions limits, operating restrictions and monitoring, testing and reporting requirements. CORBETT SIGNS MARCELLUS SHALE EMERGENCY RESPONSE BILL February 3, 2012 – Corbett this week approved Senate Bill 995, which requires the Pennsylvania Emergency Management Agency and the Department of Environmental Protection to adopt emergency regulations that direct Marcellus Shale site operators to establish and register a GPS coordinate for each unconventional well. It also requires them to develop emergency response plans and post signs to assist emergency responders. BOCOR GAS WELL FIRE IN MERCER COUNTY, PA Febuary 3, 2012 - A small shed housing a natural gas compressor at a Mercer County well caught fire this morning, burning for more than two hours before firefighters extinguished it. The Jamestown Fire Department was dispatched shortly before 4 a.m. to a Bocor Holdings natural gas well in Greene Township. One nearby resident was forced to evacuate. Damage from the blaze has forced the company to shut down 11 of its wells wells and a collection line. PA SENATE PANEL SETS MONDAY HEARING ON REFINERY CLOSINGS February 3, 2012 - The notion of closing three key refineries - two of them in Delaware County - is raising eyebrows in the state capital. The Senate Majority Policy Committee, chaired by Sen. Ted Erickson (R-26), will hold a public hearing Monday on the impact that three planned oil refinery closures will have on statewide fuel supplies. The hearing will be held Monday, Feb. 6 at 10 a.m. in the Senate Majority Caucus Room of the Capitol. The impact could be especially serious in the Pittsburgh region, where federal regulations require use of a specific blend of gasoline provided by the refineries. If a sale is not completed, Sunoco and ConocoPhillips have indicated that the facilities could be dismantled. WASHINGTON CO. PA. COMMISSIONERS EXTEND DRILLING INSIDE PARK February 3, 2012 - Paul Parker, a 36-year resident of Hopewell Township, was a planning commission member in the 1970s with a vision for recreation, but he said Cross Creek has strayed, turning into an industrial park. "We have lost complete control of our local government. We don't have a voice anymore. Range Resources speaks louder than the citizens," Parker said before his remarks were met with applause. The county's oil and gas royalty, formerly 14.5%, has been increased to 16%. The commissioners were not required to hold specific meetings on the topic to seek public comment. "It's representative government," Fergus said. "Do you pick one topic that's more important than another and decide to wait on it?" Congressional hopeful Larry Maggi asked rhetorically after the meeting. The vote to amend the county's lease with Range Resources was unanimous. [All three commissioners have accepted political contributions from Range Resources] Story Video of meeting Video of park clearcutting
DRILLING, DRILLING EVERYWHERE February 3, 2012 - During the last drilling boom a century ago, some Pennsylvania neighborhoods wound up with oil derricks poking up nearly everywhere. If Harrisburg passes drilling reform bills as proposed, the state might end up with similar problems from today's gas drilling boom, said two municipal officials who are campaigning to stop the bills. Suburban neighborhoods, major office park projects, and public parks all could wind up with drill rigs if municipalities are prevented from blocking them, they claim. "That's a scary thought," said Andy Schrader, supervisor in Cecil. "What's scary about this bill is that they can just come in and drill where they want, when they want." Instead of simply "wiping out rules," state leaders should set aside about 40% of fees from drillers to pay for regional planning, Coppola said. That planning could dictate the most efficient places for drilling and for installing the massive network of pipelines and compressor stations without hurting suburban development. Story Video: Township councilman warns of pending legislation (21:09) HB 1950 Text HB 1950 Senate Amendments
WATER UTILITY REBUTS February 3, 2012 - Pennsylvania American Water released six years of test results showing no evidence of arsenic at its Montrose public water supply on Thursday after a natural gas driller said this week that a Dimock Twp. water sample showing high levels of the chemical originated from the Montrose system. Annual samples taken at the Lake Montrose treatment plant between Feb. 6, 2006, and June 1, 2011, all show no detection of arsenic, which is known to cause cancer in humans. The water utility brought attention to the clean results Thursday to counter a claim by Cabot Oil and Gas Corp. this week that a water sample cited by the U.S. Environmental Protection Agency in its investigation of gas drilling's impact on water supplies was trucked to Dimock from Montrose. OHIO
RESIDENTS WANT ANSWERS February 3, 2012 - The Ohio Department of Natural Resources is expected to release a report sometime in February on injection wells after recent earthquake activity in Youngstown. Residents concerned with oil and natural gas drilling and injection wells met Thursday night at the First Unitarian Universalist Church in Youngstown. Their goal is to put pressure on state leaders and government regulators to make sure the drilling process is safe. Columbiana County resident Karen Bertolasio fears what oil and natural gas drilling may soon do to her community. She lives next to Beaver Creek State Park. "A lot of my neighbors are already talking about signing up," said Bertolasio. "There's nothing I would rather see happen in our state than for us to pick up and become very prosperous again, but not because people are going to be unsafe." OHIO
LEGISLATOR PLANS BILL February 3, 2012 - State Rep. Robert F. Hagan said Thursday night he plans to introduce legislation that contains the ideas of an Innovation Ohio study on oil and gas production. Speaking at a fracking-related meeting, Hagan of Youngstown said those advocating a slower pace to oil and gas exploration in Ohio need to “fire away at every angle we can,” a reason he feels strongly about Innovation Ohio’s study. The study says Ohio should increase tax rates on oil and gas production and use the proceeds to help schools and local governments with their budget crunches. It also says that Gov. John Kasich and the Ohio Legislature should pass a “landowner bill of rights” to protect unsuspecting Ohioans from unscrupulous energy companies and create incentives to ensure oil- and gas-production jobs go to Ohioans and not workers from other states. Story Innovation Ohio report (PDF) ‘Landman Handbook’ (authentic?)
RUSSIAN-KOREAN NATURAL GAS February 3, 2012 – North Korea’s deputy oil industry minister visited Moscow at the end of November to hold the first meeting of the so-called joint working group with Gazprom charged with the project. Russia wants to construct a pipeline that would carry as much as 10 billion cubic meters of gas a year to South Korea via the North, which would earn transit revenues. Russia may also build a power grid along the route. Korea Gas Corp., the world’s biggest importer of liquefied natural gas, and Gazprom have been trying to identify a supply route since at least 2003, when they signed a cooperation accord. Russia has also proposed a railway project that would connect the Trans-Siberian Railway to South Korea via North Korea, opening up an “Iron Silk Road” that would cut shipping costs of South Korean companies to Europe. Shale Gas News February 2 2012 PA
DEP INVESTIGATING THREE February 2, 2012 - State environmental officials are investigating three separate spills at a gas well pad in Lycoming County. It is not the first time the company Pennsylvania General Energy has been in the Pennsylvania Department of Environmental Protection's crosshairs. Last spring residents along Pine Creek north of Jersey Shore were outraged when high waters washed away a temporary stone dam. The dam was put in the creek by PGE, but did not have proper approval from the state. Now some of those same residents are concerned after three spills at the same PGE natural gas well pad near the creek. Mark Givler lives where Ramsey Run empties into Pine Creek along Route 44 north of Jersey Shore. "There had been a spill of some kind at a well pad located on the ridge line above my house probably 3,000 to 4,000 feet from my house," said Givler.
FRACKING RULES ON U.S. LANDS Feburary 2, 2012 - Federal rules for fracking on public lands, set to be released in a few weeks, may serve as a model for states to get companies to disclose the chemicals used in the drilling process, an Obama administration official said. The proposed federal standards will be compatible with rules already in place in states such as Wyoming and Texas, and will allow limited exemptions for “legitimate trade secrets,” David Hayes, the deputy Interior secretary, said today.
WYOMING BOARD APPROVES NEW February 2, 2012 - Wyoming’s top elected officials on Thursday unanimously agreed oil and gas operators need an additional state sign-off before flaring, or burning off, natural gas vented from industry wells on state-owned land. Between six and eight gas wells are currently venting gas, with an estimated total value of about $250,000 in lost royalties over a two-year period, according to state estimates. The number of wells and the volume of flared gas is expected to increase with the heightened drilling activity in the Niobrara Shale oil play in southeastern Wyoming. The area has little of the infrastructure and pipelines needed to capture and market the gas. Industry representatives had objected to having to file applications to the Wyoming Oil and Gas Conservation Commission and to the Office of State Lands and Investments for permission to vent natural gas. MORE DRILLING IN CROSS CREEK PARK? February 2, 2012 - Washington County, Pa commissioners are expected to vote today on proposed modifications to the county's agreement with Range Resources for natural gas drilling at Cross Creek County Park. Under the proposal, Range would be limited to eight years to complete natural gas extraction in the park, and the number of well pads, rather than wells, would be limited. Permits would be limited to "no more than seven active drilling sites or well pads." During a candidates' forum last fall, Harlan Shober was the only one of four running for commissioner who personally had leased drilling rights. He declined to reveal how he might vote but said Wednesday, "I really don't feel there's a conflict here from a personal standpoint. I don't feel that I'm gaining personally on this." He has leased 2-1/2 acres under his home to Range Resources. Story Cross Creek Park drilling GOV.
CORBETT PROMOTES DRILLING February 2, 2012 - The state has a long-standing tradition of local land-use rights, and the drilling industry shouldn't receive special exemptions from that, said Jonathan Kamin, the solicitor for South Fayette in a court case challenging its drilling rules. Though the state's current oil and gas law puts the state in charge of most aspects of drilling, state courts have affirmed that municipalities do have some control over where and when drill work can happen. Under the new proposal, given preliminary approval this fall by the state House and Senate, it would be allowed everywhere statewide, including residential zones, except within 300 feet of a house. Coppola and his allies have met with several state lawmakers to push an alternate proposal, he said. They support the governor's call for consistency, but oppose what they see as a push to strip nearly all local power over drilling. http://www.pittsburghlive.com/x/pittsburghtrib/news/specialreports/marcellusshale/s_779437.html
BOULDER COUNTY, CO. IMPOSES February 2, 2012 - Boulder County commissioners on Thursday imposed a temporary moratorium on accepting and processing new applications for oil and gas drilling operations in any unincorporated areas of the county. The six-month moratorium, which took effect immediately and is to remain in place until Aug. 2, is intended to give the county staff time to study the adequacy of Boulder County's current land use regulations as they apply to oil and gas development, and to propose possible amendments to those existing local rules. "I think we all agree that we have some sense of urgency around this," said Commissioner Deb Gardner, who said the time-out on processing new drilling applications is needed to make sure Boulder County is doing everything a local government legally can do, in "protecting the people and the environment."
IRISH FRACTIVISTS February 2, 2012 - Environmentalists from Munster will travel to Enniskillen, Co Fermanagh, to join protestors dealing with the most advanced fracking exploration effort in the country. This week Tamboran Resources said with an investment of more than €6 billion, it can disrupt and harvest "tremendous" natural reserves in north Leitrim. Tamboran is at the vanguard of an exploration wave that has been focused on perceived pockets of natural gas in Leitrim, Fermanagh, Roscommon, Cavan, Sligo, Clare, Kerry, Limerick, and Cork. However, Leah Doherty of No Fracking Ireland said the headline figures for 3,000 jobs and 40 years of gas were part of a propaganda campaign seeking to take advantage of people’s financial concerns. PA.
GOV. CORBETT REASSERTS February 2, 2012 - Gov. Tom Corbett is reinforcing his position that local rules for natural-gas drillers need to be more uniform across the state, and now is speaking favorably of the proposal to do so that passed the House and Senate late last year. With lawmakers aiming to vote on a compromise Marcellus bill as soon as next week, the governor penned a letter to all 253 members, calling it "paramount" that the measure address variations in local zoning ordinances. Both chambers have approved provisions that would allow the state attorney general to determine whether a town's ordinance is reasonable, based on certain statewide guidelines. "It seeks to balance the state's prerogative to establish and enforce environmental standards with the proper function of local zoning, ensuring that one industry is not given special -- or unfair -- treatment," Mr. Corbett wrote. Shale Gas News February 1 2012
HINCHEY: ARREST OF February 1, 2012 - Congressman Maurice Hinchey (D-NY) today released the following statement upon learning that Gasland Director Josh Fox was arrested for attempting to film a public congressional hearing on hydraulic fracturing. The Chairman of the Energy and Environment Subcommittee of the U.S. House Committee on Science, Space, and Technology ordered Fox arrested when he attempted to film the hearing on the Environmental Protection Agency's approach to studying ground water contamination that resulted from hydraulic fracturing in Pavilion, Wyoming. "It is beyond unacceptable that acclaimed documentary director Josh Fox was arrested for trying to film a public hearing on groundwater contamination caused by hydraulic fracturing in Pavilion, Wyoming. This was a public hearing, there was plenty of room for cameras, and a credentialed camera crew was told they would be denied access because they were working for a documentary filmmaker. This is blatant censorship and a shameful stain on this Congress. I stand by Josh's right to record this hearing. His arrest was a huge mistake."
VERMONT HOUSE TO VOTE ON February 1, 2012 - The Vermont House is expected to give final approval to a bill calling for a three-year moratorium on hydraulic fracturing in oil and natural gas wells. No such wells exist in Vermont, but lawmakers were told a geologic shale formation that could contain oil and gas extends under parts of the northwestern part of the state. ‘GASLAND’ FILMMAKER ARRESTED AT CAPITOL HEARING February 1, 2012 - Mr. Fox said that Wednesday’s hearing was scheduled on short notice and he tried to contact committee staff to get clearance to videotape it. He never got an answer, he said, so he and a videographer showed up at the hearing room in the Rayburn House Office Building, where they were told they could watch the hearing but could not tape it. “We have followed this case for three years, and it seemed as if this hearing was an attack on the E.P.A. and we wanted to be there,” Mr. Fox said. “We wanted this to be transparent to the American people. This is emblematic of what is happening across the world.”
JAPAN PROTESTS CHINESE GAS February 1, 2012 - Japan on Wednesday accused China of unilaterally exploring gas deposits in the East China Sea, in violation of an agreement to jointly develop disputed areas. Chief Cabinet Secretary Osamu Fujimura told reporters Japan protested to China after a flare was seen Tuesday at a Chinese structure at an undersea gas deposit. Japan has made similar complaints several times in the past. Japan and China agreed in 2008 to suspend unilateral digging in that field while continuing talks, but talks stalled since 2010 following a diplomatic spat stemming from a maritime collision near disputed southern islands claimed by both countries, as well as Taiwan. Fujimura said China’s activity around the disputed field violates the agreement. JOSH FOX ARRESTED TRYING TO FILM CAPITOL HEARING February 1, 2012 - Oscar-nominated documentary filmmaker Josh Fox was arrested Wednesday morning after attempting to film a House Science Committee hearing on hydraulic fracturing. Fox was led out in handcuffs by the Capitol police shortly after 10 a.m., before the hearing could be gaveled into order. The committee recessed after Rep. Brad Miller (D-N.C.) called a motion to suspend the committee rules and allow for Fox and the ABC crew to film the hearing. "... it's clear we have space in this room to film this hearing," Miller said. "If you claim that rule does not allow them to film, or allows you the discretion to turn them away, I move the rules be suspended so the fella who wanted to film for HBO be allowed to film this hearing and that ABC be allowed to film this hearing and all God's children be allowed to film this hearing until the room is too full for us to conduct our business." The hearing resumed nearly 30 minutes later, after Republicans voted to table both Miller's motion to allow the filming, and a second motion to recess the hearing. COLORADO FRACKING PROTESTORS BOOTED FROM WINTER ‘X’ GAMES February 1, 2012 - A revolt against hydraulic fracturing in Colorado went worldwide Sunday night as a group of self-described “fractivists” flashed anti-drilling signs along the superpipe of the Winter X Games. About a dozen local twenty-somethings waved signs reading “Keep Our Water Pure,” “Rig Free For You And Me” and “Stop Frac’ing Colo” that television cameras carried live when Shaun White twisted and tumbled through the air on his way to his fifth-consecutive men’s snowboard superpipe victory. The ESPN Winter X Games provided an ideal venue, the activists said, to educate an extremely large and youthful crowd about fracking — a method of extracting natural gas and oil by breaking rocks with a pressurized mixture of fluids. The mission went off without a hitch until about 15 minutes before the superpipe finals came to an end. That’s when private security tried to shut the demonstration down. MINIMIZE DRILLING’S THREAT TO CLEAN AIR IN PA. Feburary 1, 2012 - Marcellus Shale natural-gas drilling is a significant source of air pollution, and as drilling expands, so will the risk to human health and the environment. The drilling, processing, and transportation of Marcellus Shale gas require many pieces of equipment and activities that release harmful pollutants into the air. In fact, gas transmission and production engines are the second-largest emitters of nitrogen oxides in Pennsylvania. As many as 60,000 wells may be drilled in Pennsylvania by 2030; right now, there are only about 4,500. Gas-drilling air pollutants - nitrogen oxides, sulfur dioxide, volatile organic compounds, carbon monoxide, hydrogen sulfide, particulate matter, and methane - can cause or exacerbate a variety of respiratory and other health-related conditions. These pollutants can also damage the environment. Nitrogen oxides and sulfur dioxide together are the major precursors to acid rain. Methane is a powerful greenhouse gas. Story Children's Environmental Health OHIO TRIES TO ESCAPE FATE AS DUMPING GROUND FOR FRACK FLUID February 1, 2012 - The millions of gallons of chemical- laced wastewater that fracking produces must flow somewhere, and Ohio is trying not to be that place. “We have become in Ohio the dumping ground for contaminated brine,” said state Rep. Armond Budish. “We didn’t prepare adequately for the potential for earthquakes and other environmental problems.” The oil and natural-gas drilling boom spurred more permits for disposal wells there during the past two years than during the previous decade combined. The volume injected into them was on a near-record pace last year, and more than half was from out of state. That included 92.6 percent of the water sent to a Youngstown well closed last year after 11 nearby earthquakes. The well owners pay a disposal fee to the state of 5 cents per barrel for brine originating in the state and 20 cents for out-of-state wastewater. OHIO
COMPANIES FIGHTING February 1, 2012 – Recently, the state came up with new guidelines for acceptable levels of "total dissolved solids" or TDS, in wastewater coming from businesses. In Warren, the new levels would be 622 milligrams of dissolved solids per 1,000 liters of water the city could put into the Mahoning River. The regulation wouldn't take effect until May 1, 2013, which Warren's Water Pollution Control Department Director Tom Angelo has said isn't a lot of time if companies are forced to invest millions of dollars into pretreatment plants. Angelo has said the level would force companies to invest millions of dollars to build their own water pretreatment plants before sending the water to Warren to be discharged into the Mahoning River. Story EPA Letter (PDF) Effluent discharge (PDF) Water alert (PDF)
PIPELINE FIRM TAKES February 1, 2012 - The dispute could foreshadow eminent domain battles to come as more pipelines are approved and built to carry shale gas to market in states like Pennsylvania, New York and Ohio. Some of the complaining landowners say the company steamrolled them by refusing to negotiate in good faith on either monetary compensation or the pipeline's route. Their attorneys say the company has skirted Pennsylvania's eminent domain rules governing compensation. Residents are fighting the pipeline on two fronts: challenging the eminent domain proceedings in court and appealing the approval by FERC.
JUDGE DENIES ACCESS TO February 1, 2012 - A Washington County judge has denied a request by the Observer-Reporter and Pittsburgh Post-Gazette to allow the newspapers to intervene in the case between Range Resources, Mark West Energy Partners and Williams Gas/Laurel Mountain Midstream and a Mt. Pleasant Township family. The newspapers claimed that a P-G reporter had openly objected to the sealing of the settlement at the Aug. 23 meeting and therefore immediate intervention was implied. The newspapers claim sealing of the record is in violation of the common law rights of the media. The newspapers also believed the judge would need to hear testimony before rendering a decision.
CABOT FIRES BACK February 1, 2012 - A natural gas company on Tuesday alleged that federal regulators had cherry-picked old test data to distort the amount of contamination in drinking-water wells. Cabot Oil & Gas Co., whose drilling was blamed for the pollution, said that the drinking-water tests the Environmental Protection Agency used to justify its Jan. 19 order to deliver fresh water supplies to four Dimock houses "do not accurately represent the water quality" and are inconsistent with the body of data collected at the residences. Cabot disputed the EPA's finding that the water well of one house had excessive levels of arsenic, a naturally occurring carcinogen. Cabot said none of the four houses had high levels of arsenic. It said the data that EPA cited apparently came from a test of a public water system, unrelated to well-drilling. BID
TO KEEP VEIL OVER FRACKING February 1, 2012 – The Mineral Resources Minister has argued the Promotion of Access to Information Act does not allow public access to the minutes or research documents of a task team she set up to investigate the controversial gas extraction technique hydraulic fracturing, or fracking. Fracking would be used to extract gas from SA’s large untapped shale gas resources — the world’s fifth-largest, estimated by the International Energy Agency at 485-trillion cubic feet — under the ecologically sensitive Karoo. The reserves became the subject of intense debate last year after it was revealed petrochemical companies were keen to exploit them.
INDUSTRY ATTEMPTS TO SWAY February 1, 2012 - France, which last year banned oil and natural-gas extraction from shale rock, should keep experimenting with the technology if it wants to curb reliance on imports, the nation’s oil industry lobby said. The ban, the first of the technology by any country, has suspended shale exploration at permits around Paris and in southern France. Oil companies including Total, the nation’s largest, and Toreador Resources Corp. held licenses for shale exploration. The country should use “all means” to cut purchases of energy supplies from abroad, the Paris-based Union Francaise des Industries Petrolieres said today in a statement. UFIP also urged France to revise its mining code so that the public and local government are more “closely associated” with projects. Shale Gas News January 31 2012 PA. TAXPAYERS LOSERS AS DRILLERS PROFIT, $300 MILLION LOST SO FAR January 31, 2012 - Legislative inaction on a natural gas drilling tax has cost Pennsylvania $300 million in lost revenue, according to the Pennsylvania Budget and Policy Center. State cuts announced in January to services ranging from help for victims of domestic violence to hospital trauma centers to prekindergarten could have been avoided if the Legislature had enacted a drilling tax. Pennsylvania is the largest mineral-rich state in the nation without a drilling tax or fee of any kind. All 11 states with more gas production than Pennsylvania have a tax or fee. Unlike those states, Pennsylvania is giving away a one-time resource. A new estimate says the proposed Pa. Marcellus impact fee could leave billions more on the table over the next 2 decades. Story Pennsylvania Budget & Policy Center COLORADO COUNTY APPROVES TONED-DOWN O&G DRILLING RULES
January 31, 2012 - El Paso Co. Commissioners finalized rules and regulations for gas and oil drilling on Tuesday, narrowly voting to adopt new safety and environmental regulations. Commissioners voted 3-2 in favor of lifting the suspension on drilling. Production had been on hold temporarily as several new proposals were weighed. The new set of safety rules adopted Tuesday is much less stringent than the original set commissioners had hoped to adopt. Much of the language was toned down after concerns that the County might be overstepping its regulatory authority. Commissioners presented a nearly finalized draft of the proposed regulations to the public during their meeting. Story Draft of El Paso County, Colorado Drilling Regulations (PDF-offsite) PA. JUDGE DENIES NEWSPAPERS ACCESS TO RANGE'S GAS DRILLING SETTLEMENT January 31, 2012 - A Washington County judge has denied a request by the Washington Observer-Reporter and Pittsburgh Post-Gazette to allow the newspapers to intervene in the case between a group of gas drilling corporations and a Mt. Pleasant Township family. The newspapers made their request last year with Judge Paul Pozonsky, first arguing why they should be allowed to be involved in the case between Stephanie and Chris Hallowich and Range Resources, Mark West Energy Partners and Williams Gas/Laurel Mountain Midstream. The newspapers are seeking to have the settlement agreement between the Hallowiches and the corporations made public. O-R Editor Liz Rogers said the newspaper will appeal the judge’s decision to a higher court.
RANGE RESOURCES’ ONGOING January 31, 2012 – Range’s Pitzarella claims Lipsky “deliberately falsified an internet video of his garden hose flaming.” “Their theory is that the Lipskys have fooled the federal government,” Stewart said in July about Range’s counterclaim. After Lipsky spoke to a reporter about the ruling over the weekend, Range added Lipsky’s published statements to the multi-million dollar countersuit against the couple. The petition alleges the Lipskys have made “unfounded and disparaging statements” about the company. “The Lipskys published defamatory and disparaging words regarding Range, directly and/or by innuendo, including statements made by Mr. Lipsky [to a reporter on Jan. 28],” court documents filed Monday by Range read. In July, Stewart called the counterclaim an attempt to bully the Lipskys into not talking. Story Video History of the case
EUROPEAN COMMISSION: NO NEED January 31, 2012 - A European Commission consultancy study on licensing hydraulic fracturing or "fracking" for shale gas in EU member states says there is no need for specific new legislation governing the controversial activity. However, the study notes that public participation in authorising mineral exploration projects is "often rather limited". The study by Brussels-based legal firm Philippe and Partners analysed the legal situation governing "fracking" in four EU member states - Sweden, Poland, France and Germany.
EXXON-MOBIL 4TH QTR PROFITS January 31, 2012 - The world’s largest publicly traded oil company reported net income of $9.4 billion for the quarter, up from $9.25 billion the year before. The company posted revenue of $121.6 billion, up 16 percent. Exxon Mobil became the largest gas producer in the United States when it bought XTO Energy for $25 billion in 2010, a deal that was questioned by many energy analysts as expensive. 700 LBS. OF SEISMIC GEAR CRASHES ONTO HOMEOWNER’S DECK January 31, 2012 - Kathy Kaminsky had just come inside Sunday after playing in the yard of her Susquehanna County home with her 10-year-old granddaughter when she heard what she said sounded like a tornado passing over the roof. Ms. Kaminsky and her granddaughter dived for cover, and later discovered a bright orange bag on the back deck of the house. The bag contained gear used in the seismic process. After several telephone calls, she learned she needed to contact the Federal Aviation Administration. She also contacted Cougar Land Services, a seismic testing company operating in the area. Ms. Kaminsky said Cougar told her they were aiming for a stake in her yard about 35 yards from where the bag landed. It is still not known why the bag was dropped so near the home.
LANDOWNERS FIGHT EMINENT January 31, 2012 - When federal regulators approved a 39-mile natural gas pipeline through northern Pennsylvania's pristine Endless Mountains, they cited the operator's assurances that it would make sparing use of eminent domain as it negotiated with more than 150 property owners along the pipeline's route. Yet a few days after winning approval for its $250 million MARC 1 pipeline in the heart of the giant Marcellus Shale gas field, the company began condemnation proceedings against nearly half of the landowners — undercutting part of the FERC’s approval rationale and angering landowners. The company, a subsidiary of Inergy LP of Kansas City, Mo., insists it's trying to reach a "fair settlement" with all property owners and wants to be a good neighbor.
MARCELLUS OPERATORS TO January 31, 2012 - Operators of Marcellus wells, drilling rigs and compressor stations are being notified by state officials to provide air emissions data by March 1, highlighting an issue activists want more attention given in pending impact fee legislation. A notice by the DEP in the Pennsylvania Bulletin calls for operators to provide emission source reports covering 2011 for facilities involved in different phases of the Marcellus production process. The agency notified 99 firms about the requirement last month. The March 1 deadline is set because DEP has to provide a comprehensive inventory of air emissions to the federal EPA by year's end. This inventory is updated every 3 years. This will be the first time emissions data for Marcellus production and processing operations is included in the inventory, providing information on emissions like carbon monoxide, nitrogen oxides, particulates and sulfur dioxide.
CANADIAN FIRMS WELCOME January 31, 2012 - New industry operating standards for "fracking" natural gas wells will add to development costs, but the spending is necessary, say Canadian producers. On Monday, the Canadian Association of Petroleum Producers recommended six operating practices for companies that employ common but controversial hydraulic fracturing to complete gas wells. The list includes a provision to do baseline groundwater sampling of residential wells within 250 metres of shale or tight gas development before drilling begins, as well as ongoing testing and monitoring of groundwater on a regional basis in conjunction with government. Neither is a common practice now. W.V.
GOVERNOR SUPPORTS January 31, 2012 - Forty-four senators introduced "bipartisan" legislation Monday to approve construction of the Keystone XL pipeline, and West Virginia's Joe Manchin was the only Democrat joining 43 Republicans to sponsor the measure. President Barack Obama this month rejected a call for immediate approval of the Keystone XL project. The pipeline would transport oil from Alberta, Canada, through Montana, South Dakota, Nebraska, Kansas and Oklahoma before ending in Nederland, Texas. Obama is expected to delay a final decision on the matter until after the 2012 election. Shale Gas News January 30 2012 ERIN BROCKOVICH’S TIPS FOR TAKING CHARGE OF YOUR INJUSTICE January 30, 2012 – Erin Brockovich came on Anderson Cooper's show to help a couple whose house was allegedly destroyed by a gas company. Erin knows a thing or two about consumer injustice, having served as a legal clerk, environmental activist and famous consumer advocate.
Erin's three
tips:
NATURAL GAS FLUCTUATES January 30, 2012 - Gas, the worst-performing commodity on the Standard & poor’s GSCI Spot Index this year, is heading for its third straight monthly decline. Commodity Weather Group LLC in Bethesda, Maryland, predicted normal or above-normal temperatures in the U.S. through Feb. 13. Previous forecasts showed colder-than-average weather on the East Coast from Feb. 8 through Feb. 12. Gas inventories totaled 3.098 trillion in the week ended Jan. 20th, 20.7% above year-earlier supplies. Stockpiles were 21.4% above the five-year average, the most since June 19, 2009. Korea Gas Corp. has agreed to buy 3.5 million tons of liquefied natural gas per year from Cheniere Energy Partners’ proposed Sabine Pass export terminal. Cheniere has now completed commercial contracts for four trains at Sabine Pass. HOW CLOSE IS TOO CLOSE? 1,000 FT. SETBACK ENOUGH? January 30, 2012 - Colorado Democrats have introduced a bill in the State Legislature that would require hydraulically fractured oil and gas wells to be set back at least 1,000 feet from any school or residence. “The COGCC must require setbacks of at least 1,000 feet from any school or residence but allow a surface owner who is not located in an urban area to request a shorter setback than would otherwise apply,” reads the bill’s summary. Current rules call for setbacks of 150 feet in rural areas and 350 feet in urban areas.
FORMER MLA BLASTS January 30, 2012 - Former Progressive Conservative MLA and cabinet minister Tony Huntjens is blasting the Alward government for its position on hydro-fracking and threatening to withdraw his support in the next election. In a letter to the editor, published in the St. Croix Courier in St. Stephen on Jan. 27, Huntjens said the "practice of extracting resources from our earth is dangerous" and that the "toxic" chemicals used in the process will "without doubt, end up in our drinking water. "I simply cannot understand this same person who is now responsible, not only to his constituents, but to all New Brunswickers for the supply of their drinking water, standing up in the legislature to support a far more dangerous procedure known as fracking," wrote Huntjens. IS
ANYONE STILL DRILLING January 30, 2012 - While the price of natural gas is low in North America due to a vast abundance of supply, the same is not true in the rest of the world. That dynamic has been captured by the rig counts all over the world. When prices are good, companies drill oil and gas to earn what they believe to be a solid rate of return. When prices for oil and gas fall too far, they no longer provide sufficient returns to justify drilling for them. One company I love following to get a pulse on oil and gas capital spending worldwide is Baker Hughes, since it publishes very helpful rig count information that helps track the trend of oil and gas drilling worldwide. In the North American market, Baker Hughes continues to see the shift in rigs from gas to oil. In the fourth quarter, gas rigs comprised 42% of the total North American rig count, down from 54% a year earlier. Further, the company expects gas rigs to decline by 218 rigs by the end of 2012, which contrasts sharply with the expected increase in oil rigs by 220 rigs. FRACKING BANNED FOR 2 YEARS IN BINGHAMTOM, NY January 30, 2012 - After years of debating the environmental impact and future of natural gas drilling in Binghamton, the Binghamton City Council voted in favor of a two-year ban on fracking. Mayor Matt Ryan signed the bill into law on Dec. 22, making Binghamton the first city in the Southern Tier to ban the process. The ban preserves all land within city limits from fracking and prohibits the natural gas industry from exploring and developing in the area over the two-year period. The law is meant to protect the city from the potentially harmful effects of fracking, including the risk of contaminated drinking water due to the discharge of toxic material or chemical spills, according to Andrew Block, executive assistant to the mayor. Story City of Binghamton New York PA.
GAS BOOM CREATES HOUSING January 30, 2012 – In some areas, low-income permanent residents no longer can afford rents. "Our caseworkers have to really stretch to find places for folks to go," said Jeff Fondelier, V.P. of operations for Community Action Southwest, which provides rental and utility assistance in Washington and Greene counties. Rents doubled and even tripled in northern counties as shale workers moved in, said Bonita Kolb, an associate professor of business at Lycoming College. The shale gas industry's growth is bringing the sting of high rents and housing shortages — previously felt in northern counties — into Greene and Washington counties, experts say. In some areas, pickups line parking lots of hotels and motels, which have no vacancies. Story Community Action Southwest Shale Gas News January 29 2012
RETREAT FROM NATURAL GAS January 29, 2012 - A precipitous plunge in natural gas prices has turned the national shale gas rush into a retreat. Oil and gas companies released a stream of announcements last week of plans to close off natural gas wells, pull out gas rigs and curtail spending in gas fields from Texas to Pennsylvania. There are 780 natural gas drilling rigs operating in North America, down from 906 a year ago. “This situation has been a long time coming,” said Robert Ineson, head of the North American gas research group for IHS CERA. “As it got below $4, you heard some grumbling,” Ineson said. “But when it got below $3, you saw things change pretty quickly.” Shale rock fields holding dry natural gas, or methane, are experiencing an exodus. Companies are chopping operations in the Barnett Shale in North Texas, the Marcellus Shale in the Northeast and the Haynesville Shale on the Louisiana-Texas border. ONE
YEAR MORATORIUM January 29, 2012 – The proposed law, introduced by the board on Jan. 10, sets a one-year moratorium on any exploration, extraction or support activities for natural gas or petroleum. Support activities, as described in the draft law, include facilities for compression, processing or storage of natural gas; production wastes dumping; and non-regulated pipelines, such as production and gathering lines, used in gas drilling. A similar moratorium in Lansing will be reviewed on Wednesday during a working session of that town's board. The board will consider a recommendation made by Larry Beck, chairman of the Lansing Drilling Committee, that a one-year moratorium would enable the town to revise its comprehensive plan, tweak local ordinances and take the time to devise a plan of action when it comes to hydrofracking. NATURAL GAS SECTOR SET-UP TO BE SABOTAGED BY OBAMA? January 29, 2012 – President Obama spoke of the role natural gas must play in America’s energy future during his State of the Union address last week, but industry insiders fear it’s merely lip service designed to distract from what they consider the administration’s behind-the-scenes plan to sabotage the sector. At the same time the president boasts of the nation’s vast shale gas deposits, his EPA is poised to make extracting that fuel much more difficult. The agency will this year release a widely anticipated study on hydraulic fracturing. Many in the gas industry fear that the upcoming EPA study will call for harsh new regulations on the process, and many environmental groups - a key constituency for Mr. Obama during this year’s re-election bid - are publicly pushing the administration to outlaw fracking entirely. Story EPA - Hydraulic Fracturing
PRE-EMPTION OF LOCAL RIGHTS January 29, 2012 - Idaho officials have been scrambling to develop new rules after natural gas discoveries in 2010 in an ancient lake bed a mile beneath the surface of Payette County, to Washington County's south. Natural gas wildcatters have been concerned about cities and counties passing laws that could halt development of Idaho's emerging oil and natural gas fields. A main concern is hydraulic fracturing, or fracking. "It strikes me from this press release that the counties can't veto anything," Justin Hayes of the Idaho Conservation League told The Associated Press on Sunday. "Which leads me to believe that the oil and gas industry can get whatever they want, and the counties will just have to take it. Setting all the rhetoric aside, it still sounds like, in the end, counties cannot object to proposals that they don't like." Snake River Oil & Gas helped develop the legislation. Story Contact the Idaho Governor COME FRACK SOUTH DAKOTA! January 29, 2012 - State lawmakers want energy developers to know that hydraulic fracturing, a controversial method of recovering oil and gas from subsurface shale, is welcome in South Dakota. A single-paragraph bill introduced Wednesday in the House of Representatives would provide that fracking, as the practice is known, “is deemed an acceptable recovery process in this state.” Rep. Lora Hubbel, R-Sioux Falls, characterized the bill as a “starting point for people who want to go down that avenue. A lot of times, bills are brought to get information out there, to get people talking,” said Hubbel, who is one of 68 cosponsors on the measure. Story Contact the South Dakota Governor
FRACKING WILL POISON January 29, 2012 – The authorities have lobbied every Tom, Dick and Harry to give their opinion about how good it will be for South Africa to allow firms like Shell to poison the delicate fauna and flora of the Karoo. What is it that people don’t understand? Just Google “fracking” and that will be enough to put the fear of God into every South African. You don’t have to be a scientist like Prof Maarten De Wit to understand that this will be the point of no return. I always wonder how much people are being paid to even suggest that fracking for gas is good for the people of the country when it means that the earth will be poisoned by toxins that will seep into the water table for hundreds of kilometres in all directions. BP
TO START JORDAN January 29, 2012 – BP Plc (BP\) will start drilling exploratory wells at the Risha natural gas deposit in Jordan, near the border with Iraq, to assess reserves in the next few weeks, an Energy Ministry spokesman said. “If it is proven that the volume of gas in the field is feasible for commercial purposes, the development of the gas field will begin immediately,” Fayez Abu Gaoud said in a telephone interview from the capital, Amman, today. WATER POLLUTION SUIT AGAINST RANGE RESOURCES IS REJECTED January 29, 2012 - Steve Lipsky said he declined to participate in the commission hearing in 2011 "because I didn't have a chance." "The gas companies own the Railroad Commission," Lipsky said in reference to Range and other natural gas producers. "They own the system ... they know they got away with it, and they're laughing about it. ... God help us all." The Lipskys contend that their water well was infiltrated by methane because Range improperly cemented and cased its gas wells, causing gas from geological formations above the Barnett to seep into their water supply. Range denies that claim, contending that the well was properly constructed. The Lipskys' attorneys also said that the commission's ruling "cannot provide a basis for rejection of the Lipskys' lawsuit when that ruling is pre-empted by a contrary order by the [EPA]," a reference to the federal agency's emergency order against Range.
SPORTSMEN: DRILLING MUST BE January 29, 2012 – As Gov. Tom Corbett prepares the state budget, there is concern that he may allow additional leasing of state forest land for natural gas drilling. Approximately 700,000 of the 2.2 million acres of state forest land has already been leased. On Thursday, more than 40 sportsmen’s groups representing 100,000-plus hunters, anglers and outdoor enthusiasts sent a letter to Corbett asking that he not allow any more state forest land to be leased for oil and gas development. The Department of Conservation and Natural Resources (DCNR), which manages the state forest system, highlighted the risk in a 2010 study that found leasing additional acreage would significantly impact the character and egological integrity of state forests. That finding led to former Gov. Ed Rendell placing a ban on additional leasing of state forest land. Story Sportsmens' Letter (PDF-572KB) Pa. DCNR gas drilling webpage Contact Gov. Corbett PLAN
NOW FOR 'UPS AND DOWNS' January 29, 2012 - Get ready for the roller coaster ride. Chesapeake Energy’s announcement that it would reduce natural gas drilling in Northeastern Pennsylvania by 30 percent is the first of what likely will be many zigs and zags for the local economy, as energy producers gear up or down depending on prices. For Pennsylvanians, there’s no such opportunity. Gov. Tom Corbett’s stubborn insistence that the industry get a free pass from paying a tax on the gas it removes means an absence of funds to fight the deleterious effects of drilling and its associated activities, or to help communities ride out the inevitable economic ups and downs in an energy producing area. CHEMICAL CO. WANTS MULTIPLE 'CRACKERS’ IN MARCELLUS REGION January 29, 2012 - Aither and its Pittsburgh-based partner have identified several suitable commercial plant locations in western Pennsylvania, eastern Ohio and northern West Virginia, including one in Beaver County. Aither and RMG have not announced a short list of possible sites, but Stein said, “The (former) LTV site (in Aliquippa) definitely is a possibility.” The former steel mill site along the Ohio River also reportedly is under consideration by Royal Dutch Shell for an ethane steam cracker plant. Dolhert said his company’s process, using variations on methods developed by Union Carbide Corp. decades ago but never used in commercial operation, is cheaper and cleaner than the steam cracker system. He said it consumes 80% less energy and produces 60% less carbon dioxide output. Noting the large amount of untapped ethane resources in the region, and the huge market for the process of petrochemicals, which Stein said is the No. 1 chemical industry in the world, Dolhert said there could be many cracker plants in the future here.
OBAMA’S BACKING OF SHALE GAS January 29, 2012 - President Barack Obama's early valentine to the natural gas industry in his State of the Union address Tuesday spurred activist anxiety and industry infatuation, but the lengthy section dedicated to domestic energy was also an appeal to the millions of voters living above the Marcellus Shale formation. "There's no chance he wins the presidency without Pennsylvania," said Christopher Borick, a political scientist. "And he needs those middle-of-the-road voters who might be optimistic about shale gas." It's unlikely the environmentalist base that helped to send Mr. Obama to Washington with high hopes would jump party and vote for a Republican because of the president's overall support for drilling, Mr. Borick said, but dampened enthusiasm could keep some at home on Nov. 6. "And not only are they voters, but they tend to mobilize," he said. Shale Gas News January 28 2012 PENN
STATE PROF. DEFENDS HIS January 28, 2012 – Some of the earliest and most optimistic estimates of gas resources have come from academia. In 2009, Terry Engelder, a geosciences professor at Penn State, helped accelerate the rush to drill for natural gas in Pennsylvania and surrounding states by projecting that more than 500 trillion cubic feet of natural gas could be produced from the Marcellus. This estimate is more than 3-times as high as the estimate for the Marcellus region from the US Energy Information Administration, and it is higher than what federal energy officials now say can be found in the entire country. In private discussions, some federal energy officials have raised questions about the way oil and gas companies may be inflating estimates of the amount of recoverable gas. "Companies highlight their highly productive and profitable wells," Mr. Budzik wrote, "while ignoring their 'dogs,' thereby giving the public the impression that every well is a 'gold mine.' " Story US Energy Info. Admin. Contact Prof. Engelder CBS NEWS: PENNA. TOWN BLAMES CONTAMINATED WATER ON FRACKING January 28, 2012 - Residents of Dimock, Penn., have lived with contaminated water wells for more than three years, and they blame the contamination on fracking for natural gas. Tony Guida of CBS News reports on the tiny town's struggle to get clean water. CBS Evening News Video Story Dimock Day Trip Video
STARK COUNTY OHIO HOME TO January 28, 2012 - Brine is a salt water that comes to the surface when oil and gas wells are drilled. It contains more salt than sea water. During the early years of oil and gas drilling, brine would be pumped into pits. That practice was banned when brine began contaminating drinking water supplies. The oil industry then began flushing brine into porous underground rock formations. Some companies began injecting brine to improve well production by pushing oil and gas to the surface. Wells can produce brine throughout the production process. In addition to large amounts of chloride, brine can contain other metals, radium and other radioactive materials. If the well is new, hydraulic fracturing fluids sometimes can be mixed in the brine. Ohio has issued permits for 194 injection wells, with 177 operating injection wells. Story Contact the Ohio Governor IN
DIMOCK, EPA TESTING January 28, 2012 - Two teams of scientists sampling well water from four homes a day are producing a picture of the aquifer under this Susquehanna County town that will help define the impact of natural gas drilling on drinking water. The water captured in vials and packed in coolers by scientists and contractors for the Environmental Protection Agency since Jan. 23 is the heart of an investigation spurred by concerns that Cabot Oil & Gas Corp.'s Marcellus Shale drilling and hydraulic fracturing tainted water wells. In a divided village where gas drilling is as earnestly embraced as it is criticized, the controversy over the EPA's fieldwork started before the sampling did. Test results are at least five weeks away. The study has provoked strong criticism from the industry and its local supporters who accuse the EPA of meddling in what they consider a settled matter or a spectacle conjured by lawyers. DRIP GAS, CONDENSATE SPILL INTO W.V. LAKE January 28, 2012 - A Petroleum Development Corporation tank filled with drip gas spilled a large number of materials, some of which flowed into Laurel Lake. A valve on a tank that holds fifteen 42-gallon barrels (630 gallons) of drip gas, a liquid condensate, was opened and the gas flowed out into a containment area, designed to capture gas in such an emergency. According to Cathy Cosco, spokesperson for WV DEP, not all of the gas was contained and the overflow emptied into Paw Paw Branch Creek, Laurel Creek and eventually Laurel Lake. It has not been determined how much of the gas spilled into the creek and the lake. “We don’t know of any fish killed,” Cosco said. “But there is a strong diesel odor.” Story Contact the West Virginia Governor
KANSAS REGULATORS UNDERSTAFFED January 28, 2012 - The Kansas Corporation Commission, the agency that regulates the oil and gas industry in the state, says it doesn't have the necessary staff to inspect the growing number of oil and gas drilling sites involving horizontal fracturing, or fracking. While most of the recent fracking activity has been in south-central and western Kansas, the KCC also said the drilling has been moving northward and includes counties "as far north as McPherson County." The KCC said that since 2009 when the first horizontal wells were drilled in Kansas, the state has seen a 300 percent increase in permits for such wells. The number of permits the state has issued for horizontally fracked wells has gone from eight in 2010, to 250 estimated for fiscal year 2012 and 500 estimated for fiscal year 2013, according to the KCC. Story Contact the Kansas Governor BEWARE FRACKING PITFALLS, TEXAS EX-MAYOR WARNS January 28, 2012 - “Even at best, you have an industrialized area and you have ... the truck traffic and the heavy equipment and the noise and odors and the dust and things like that. At worst, you have people who have contaminated water wells and you have air pollution from these treatment facilities and these compression stations and condensate tanks that leak and things like that.” He added, “The question would be, do you want what has happened to us to happen to you? And if not, then what are you going to do to prevent that?” Tillman said horizontal hydraulic fracturing has been in use in and around Dish for more than a decade, with 20 or so production wells within the community and 50-60 within a half-mile of its borders. With those wells have come pipelines, compression stations and gas-treatment facilities.
ENERGY FIRMS SET SIGHTS January 28, 2012 - As regulators and environmentalists study whether hydraulic fracturing can damage the environment, industry scientists are studying ways to create longer, deeper cracks in the earth to release more oil and natural gas. Energy companies are focused on boosting production and lowering costs associated with so-called fracking. More aggressive fracking may heighten concerns about the risks associated with shale development, said Kirk Sherr, president of Register Larkin Energy North America, an industry consultant. "If critics already think fracking is bad, theoretically, super fracking would be super bad," Sherr said. NEW
PA. WEBSITE DEBUTS January 28, 2012 - A redesigned website for the state's Office of Oil and Gas Management features new data tools that simplify the public's access to permit records, drilling dates, inspections and enforcement actions for the state's multiplying natural gas wells. At the heart of the new site are several data tools that will be updated automatically and nearly immediately rather than manually by a DEP staff member every month or so. For the first time, visitors to the new compliance database will find details for every inspection, not just those that uncover a violation at a well site. As new industry-reported data come online - as a huge amount of it will in February when six-month oil and gas waste and production reports are posted - the goal is to "tether" the databases together to present more uniform, accurate information. Story Pa. Office of Oil & Gas Management Marcellus data Public Resources Interactive Oil & Gas Reports W.V
HEALTH DEPARTMENT January 28, 2012 - Ronda Francis, Marshall County Health Department administrator, said her health department has not yet had to permit water wells for drilling sites in her county. But the process would be the same as for a resident's drinking water. Also, work sites that have 10 or more people working and living at a site must apply for a labor camp permit. Neither Gamble nor Francis said such a permit has been issued in their counties. Francis noted the Marshall County Fairgrounds feature a campground where many people park and stay year-round, including many gas drilling workers. But since it is a campground and not a work site, it is not necessary to issue any permits there. The campground has hook-ups for sewage, water and electricity. January 27 2012 Shale Gas News NEW
YORK’S FRACKING January 27, 2012 - In yet another sign that New York has slowed efforts to green-light fracking of natural gas, officials at the state Department of Environmental Conservation canceled a meeting of a drilling advisory panel this week for a second time. Officials said they were delaying the meeting, which had been scheduled for Thursday, because the department’s staff was concentrating on sorting through more than 40,000 comments received on proposed state regulations and an environmental impact statement on high-volume hydraulic fracturing, a controversial gas extraction process. A public comment period closed this month after a round of contentious public hearings in November dominated by fracking opponents. Story Contact the New York Governor
FRACKING LEGISLATION January 27, 2012 - Legislation has been introduced in MD that would ban the treatment of wastewater generated by hydraulic fracking that comes from other states. Maryland officials are still looking at the possibility of allowing fracking in the state – but consumer advocacy groups and some concerned residents are looking at the possible negative effects that Maryland could be exposed to – even if fracking isn’t allowed. Officials with “Food & Water Watch” say the chemicals used in fracking are toxic and often radioactive – and the waste is shipped around the country to be treated in municipal plats that don’t have the proper resources to handle this sort of wastewater and they want to keep the wastewater out of Maryland treatment facilities. Story Contact the Maryland Governor
CARBON DIOXIDE FOAM January 27, 2012 - Chesapeake Energy Corp. has fractured a natural gas well in Portage County using about one-tenth of the water typical in the “fracking” process. The company used a carbon dioxide foam, not high volumes of water, to create the fissures in the rock deep underground and free the natural gas at the site in Suffield Township. “We have tried a foam fracture, using [carbon dioxide], on two wells in Ohio,” Keith Fuller, director of corporate development for Chesapeake, said in a four-sentence statement the company issued to the Beacon Journal when asked about the well. The company had not publicized what it was doing in Suffield and did not disclose the other Ohio location. The fracking method only showed up in data on an online well registry. $520
MILLION OHIO PIPELINE January 27, 2012 - The Ohio Power Siting Board, the body that regulates major utility projects in Ohio, rejected the application for the Marcellus Lateral Pipeline more than a year ago. Kinder Morgan, a pipeline developer, owner and operator out of Houston, has made no official moves on the project since it submitted that application in November 2010. The 16-inch pipeline was to snake 240 miles under Ohio, from the border with the West Virginia panhandle to a connection with larger pipeline just west of Toledo. It was designed to carry natural gas liquids from the Marcellus Shale formation, a layer of rock rich in oil and gas that sits underneath much of western Pennsylvania, West Virginia and the border counties of Ohio. Its path would have crossed 15 Ohio counties, including Muskingum, Coshocton, Knox, Morrow, Marion, Crawford and Sandusky. WHY NATURAL GAS IS NOT AN ENVIRONMENTALLY FRIENDLY FUEL January 27, 2012 – Fracking is believed to have caused an Alberta oil well blowout last week, and the U.S. EPA recently found fracking chemicals in underground water out in Wyoming. There, predictably, the oil industry is blaming the study, not its activity (a response that recalls tobacco company denials of links between smoking and lung cancer). The process also consumes vast amounts of water. It also lets methane, an extremely potent greenhouse gas, escape into the atmosphere. Fracking is banned in France and Bulgaria, on hold in Quebec and under review in Nova Scotia. The Council of Canadians estimates there are 175,000 fracked wells in Canada, mainly in Alberta. If natural gas replaces gasoline, it will simply boost demand for fracking. Canada and the U.S. might become self-sufficient in transportation fuel, but at too high a cost to health and the environment. So, no natural gas vehicle can be the Green Car of this or any year. BOOM
IN SHALE DRILLING January 27, 2012 - The deep gas play may be ramping up Pennsylvania's historic oil and gas patch, but it is putting a big hit on the traditional shallow oil drilling and production sprinkled profusely throughout the northwestern counties. "The Marcellus and Utica shale drilling is affecting shallow oil operators," said Ray Stiglitz, owner of Allegheny Well Services Inc. and a longtime oilman. "The question is: why not more oil drilling when PennGrade is nearly at $100 a barrel." Repercussions from the shift to deep gas recovery are threatening the state's crude oil industry. In 2007, there were 1,733 oil drilling permits issued for the four leading oil production counties -- Venango, Warren, Forest and McKean. While that total spurted to 1,817 in 2008 when oil hit record high prices at $138-plus a barrel, it fell to 1,092 for 2011. Overall, the northern DEP office issued 4,221 oil and gas drilling permits for 27 northern counties in 2011, down considerably from the 4,683 in 2010.
SPEECH BRINGS NEW MONIKER: January 27, 2012 – Brian Uhlmer, head of equity research at Global Hunter Securities LLC, said in a report yesterday that “Bafrack” Obama buoyed energy stocks a day before his speech as word of his embrace of gas circulated among traders. The Standard & Poor’s 500 Oil and Gas Exploration and Production Index of 16 companies climbed 5.1 percent this week through yesterday. “We’re disappointed in his enthusiasm for shale gas,” said Iris Marie Bloom, director of Protecting Our Waters. Obama “spoke about gas as if it’s better for the environment, which it’s not.” Bloom’s group is seeking a moratorium on fracking in Pennsylvania. ”President Obama showed he is misreading local sentiment from communities overwhelmed in their David versus Goliath battle against large drilling companies,” said Dusty Horwitt of the Environmental Working Group. Drillers “under-regulated activities have jeopardized property values and contaminated water supplies across the country.”
IRISH FRACKING MEETING January 27, 2012 – A free screening of the award-winning documentary film ‘GASLAND’, followed by a public meeting, will be held in Ballycastle at 7pm on Tuesday February 7 in the Ferry Terminal to discuss the controversial issue of ‘fracking’. Fracking is a process that could be used all across the North Coast region from Ballycastle to Limavady, inland as far as Ballymoney and Garvagh. The prospect of fracking being carried out in North Antrim has galvanised opponents of the process hence the public meeting. Guest speakers on the night will include Steven Agnew MLA, Leader of the Green Party, who brought a motion to the Northern Ireland Assembly proposing a moratorium on fracking; Moyle Councillor Donal Cunningham (SLDP) who last year successfully brought a motion to Moyle Council to oppose fracking; Niall Bakewell, spokesperson for Friends of the Earth Northern Ireland; and Jim Donaghy, from North Coast anti-fracking group ‘No To Fracking’. Story Friends of the Earth Northern Ireland No Fracking Ireland INDUSTRY HATES THE WORD ‘FRACKING’ January 27, 2012 - A different kind of F-word is stirring a linguistic and political debate as controversial as what it defines. The word is "fracking" - as in hydraulic fracturing, a technique long used by the oil and gas industry to free oil and gas from rock. It's not in the dictionary, the industry hates it, and President Barack Obama didn't use it in his State of the Union speech - even as he praised federal subsidies for it. The word sounds nasty, and environmental advocates have been able to use it to generate opposition - and revulsion - to what they say is a nasty process that threatens water supplies. "It obviously calls to mind other less socially polite terms, and folks have been able to take advantage of that," said Kate Sinding, a senior attorney at the Natural Resources Defense Council who works on drilling issues. One of the chants at an anti-drilling rally in Albany earlier this month was "No fracking way!"
DECLINING GAS PRICES January 27, 2012 - Two of the region's most prominent energy firms Thursday reported their profits and revenues rose last year, but the record-low price of natural gas is forcing both to cut back on rapid-fire drilling. Consol Energy became the latest company involved in tapping the Marcellus Shale to scale back that development. The reason: natural gas prices that can make it tough to turn any profit at all on a well that cost $7 million to build. In Consol's case, the company's per-well net income dips into the red once natural gas starts trading at $2.74 per thousand cubic feet. Gas prices closed at $2.60 per thousand cubic feet Thursday. Downtown-based EQT Corp., Calgary-based Talisman Energy Corp. and Oklahoma City-based Chesapeake Energy have announced similar reductions in recent weeks. January 26 2012 Shale Gas News
OBAMA TOUTS NATURAL January 26, 2012 – Calling America “the Saudi Arabia of natural gas,” President Barack Obama made a brief stop in Colorado on Thursday to promote his new emphasis on domestic energy. His 2-hour visit to Buckley Air Force base was his third Colorado stop in four months, and it came during a tour of swing states after his Tuesday night State of the Union address. U.S. oil production is at an eight-year high, and the country’s reliance on foreign oil is at a 16-year low, he said. But he said the government should end “taxpayer giveaways” to oil companies and instead help the natural-gas and renewable-energy industries. Earlier Thursday in Nevada, Obama announced new incentives to get large trucks to run on natural gas, plus help for cities to convert their bus fleets to natural gas. Story Contact the Colorado Governor OHIO
COUPLE CONVINCED DRILLING January 26, 2012 - A Medina County couple has some advice for homeowners living near drilling sites as energy companies look to cash in on Ohio's reserves of natural gas. Mark and Sandy Mangan built their dream house on a wooded hillside in Medina County. But since 2008, they say the dream has gone out of the home. That's when they say natural gas tainted their water well and turned their house into a virtual bomb. When gas wells were drilled near the home, the couple's well initially went dry. Five days later the water returned. But the well water they had always depended on instead was now salt water mixed with natural gas and cement. The gas would fill the home whenever a faucet was used. Story More Ohio water well contamination Contact the Ohio Governor PA.
SHOULD PROTECT ITS REMAINING January 26, 2012 - When Gov. Tom Corbett presents his state budget in February, it is imperative that he doesn’t sacrifice Pennsylvania’s remaining state forest lands to oil and gas companies for drilling. To do so would be short-sighted. More than 700,000 acres, almost half of Pennsylvania’s state forest lands, have been leased for oil and gas drilling. As the state looks for new revenue sources, Pennsylvanians should be reminded that the state receives significant income from recreational use of its natural resources. In fact, according to the U.S. Fish and Wildlife Service, more than $4.3 billion in revenue is generated in Pennsylvania each year from fishing, hunting and wildlife-related recreation — and state forests and parks serve as the cornerstone for these activities. Story Contact Gov. Tom Corbett
NORTH DAKOTA PIPELINE January 26, 2012 - North Dakota's natural gas production, which has been rising in step with its booming oil output, may require more pipeline capacity to carry the fuel to markets, a state official says. "Is the existing infrastructure in the ground going to be adequate? If it's not, let's start taking the steps now to make sure that different pipeline options are being planned and developed for production," said Justin Kringstad, director of the state Pipeline Authority. The agency is contracting for a study of oil and natural gas production trends as wells drilled in western North Dakota's Bakken and Three Forks oil shale rock formations get older and less productive.
MARYLAND GOVERNOR’S PANEL January 26, 2012 - The governor’s Marcellus Shale Advisory Committee will begin another year of work by delving into the crux of the debate over drilling for natural gas in Marcellus shale. The question of best practices for the industry is also a matter of whether that drilling can be done safely, commission members have said. A report on best practices for all aspects of natural gas exploration is due Aug.1. “MDE (Maryland Department of the Environment) will contract with the University of Maryland Center for Environmental Studies — Appalachian Laboratory for a survey of best practices and a recommendation of a suite of best practices suitable for Maryland,” according to the commission’s draft work plan. The laboratory is located in Frostburg. Story Contact the Maryland Governor OHIO
AG: OHIO DRILLING LAWS January 26, 2012 - Ohio Attorney General Mike DeWine thinks Ohio’s natural-gas and oil drilling laws are “not adequate” compared with other states. “I think Gov. [John] Kasich has made the point very correctly that fracking can be very good for our economy,” DeWine told The Vindicator on Tuesday. “We want to encourage growth and jobs, but at the same time, we have to assure the public that the protections are in place.” DeWine said through investigation and research, he has come to three conclusions regarding Ohio’s laws: The state is not stringent enough on penalizing violations, the attorney general’s office has no jurisdiction to help landowners who may have been swindled by landmen, and there is a need for stronger chemical disclosure regulations. Story Contact the Ohio Governor OBAMA SEEKS TAX BREAK FOR NATURAL GAS TRUCKS January 26, 2012 - President Barack Obama said tax breaks for natural-gas powered trucks will help the U.S. cut its dependence on imported oil. Obama, in his second day promoting policies laid out in his State of the Union address on Jan. 24, proposes a credit equivalent of 50 percent of the extra cost of purchasing a natural gas-powered truck compared with one that runs on diesel or gasoline. Billionaire investor Boone Pickens said the president’s initiatives on energy mirror the proposals he outlined almost four years ago. Legislation to spur greater gas use has been introduced in the House and Senate. Pickens, founder and chairman of Dallas-based BP Capital LLC, is the largest shareholder of Clean Energy Fuels, a natural-gas supplier for bus and truck fleets.
CONSOL, CNX TO CUT WELLS, January 26, 2012 - CONSOL said it’s cutting about $200 million from its previously announced 2012 capital budget. For the Marcellus, that means 23 fewer wells and $130 million less in spending. The revised Marcellus target for 2012 — CONSOL and Noble Energy are developing this together — is 99 wells. IN
FRACKING BOOM, O&G January 26, 2012 - The subject of fracking sand as an environmental issue was recently explored by the Associated Press, but it wasn't until recent earnings in the oil and gas sector that sand became a primary financial issue across all companies involved in the fracking process. More than 6.5 million metric tons of sand worth $319 million was sold or used in 2009, according to the U.S. Geological Survey, and that likely doubled in 2010, the USGS told the AP. In particular, two reports this week from the only publicly traded sand miner, Carbo Ceramics, and from oil service company RPC, show the two increasingly important sides of the sand equation. Carbo Ceramics was one of the market's biggest losers on Thursday, down 20% after it reported earnings that missed Wall Street's consensus view.
CABOT GRIPES ABOUT DIMOCK, January 26, 2012 - Cabot Oil & Gas Corp. fired off a complaint to the Environmental Protection Agency, saying a probe of water in Dimock, Pennsylvania, undermines President Barack Obama’s embrace of natural gas in his State of the Union speech. “EPA’s actions in Dimock appear to undercut the president’s stated commitment to this important resource,” Chief Executive Officer Dan Dinges wrote today in a letter to EPA Administrator Lisa Jackson. “EPA’s approach has caused confusion that undermines important policy goals of the United States to ensure safe, reliable, secure and clean energy sources from domestic natural gas.” VERMONT LAWMAKERS EYE FRACKING MORATORIUM January 26, 2012 - With northwestern Vermont's Lake Champlain Islands seen as a possible site for natural gas exploration, state lawmakers appear likely to pass a three-year moratorium on the use of a hotly debated gas extraction technique called hydraulic fracturing, or fracking. Environmentalists say the chemicals are a threat to the environment and public health. They also complain that drilling companies haven't disclosed what chemicals are being used. And wastewater from the process is injected into the ground, a practice that has been tied to earthquakes, including one near Youngstown, Ohio, on Dec. 31. Vermont Natural Resources Council cites a series of studies showing the tendency of hydraulic fracturing to result in contamination of groundwater, the source of drinking waters for two-thirds of Vermont residents. It supports an outright ban, rather than a moratorium, spokesman Jake Brown said.
LABOUR CALLS FOR NEW January 26, 2012 - Labour has called for a review into the controversial oil and gas industry technique of horizontal hydraulic fracturing, increasingly being used to penetrate deep underground rock to release natural gas. L&M Energy has identified large gas reserves trapped in shale (clay) deposits in the Waiau basin; to the west of Ohai and Otautau. Labour had flagged the possibility of an inquiry before the election, and yesterday, environment spokesman Grant Robertson said the implications of fracking in New Zealand should be a priority when Parliament resumes. "There is international evidence to suggest that the process of fracking can contaminate groundwater, which could have serious consequences for rural communities, dairy farmers and milk processors if it goes unmonitored in New Zealand," Mr Robertson said in a statement. AMERICANS PROTEST FRACKING AS OBAMA CHEERS FOR IT January 26, 2012 – It took years, but opponents of fracking, the controversial process of hydraulic fracturing for the extraction of natural gas, are finally getting their point across. President Barack Obama, however, still isn’t convinced of the cons. What began as a grass roots campaign to examine the dangers of high-volume horizontal hydraulic fracturing has over the last few years spawned a massive movement of critics who are committing countless hours towards find a way to abolish fracking. In the Empire State, Ithaca College biologist Sandra Steingraber tells Mother Jones that the movement is "the biggest since abolition and women's rights in New York." Ten miles west, Ann Furman of Concerned Citizens of Ulysses (CCU) in Ulysses, New York says that they got 1,500 of 3,000 registered voters to sign off against fracking in the town last year. At Tuesday’s State of the Union address, however, US President Barack Obama did not seem to see a problem with fracking. Story Concerned Citizens of Ulysses PA.
SENATE BLOC CONCERNED ABOUT January 26, 2012 - As state negotiators inch closer to finalizing a comprehensive Marcellus Shale regulatory measure, some opposition against overruling local zoning rules has reignited within the General Assembly. Nine Republican state senators sent a letter to their caucus leaders on Wednesday, signaling their concerns with a current provision to restrict the ability of local governments to regulate gas drilling. Eliminating the variations in local drilling rules has been a priority for Gov. Tom Corbett, as well as a provision sought by natural gas companies. The governor has called for state rules to supersede local ordinances, while Senate leaders have pushed a less-strict provision. The senators listed on the letter, who mainly represent southeastern Pennsylvania, said they do support the approach from the Senate legislation, which would allow the state attorney general to determine whether a town's ordinance is reasonable. NEW
MEXICO GAS PRODUCERS January 26, 2012 – President Obama expressed support for domestic natural gas production during his State of the Union speech, but local drillers reacted skeptically to the administration's backing. "He's really not encouraging the development of gas on federal lands," said Tom Dugan, founder of Dugan Production, a small independent Farmington-based company. Dugan pointed to the $6,500 necessary to file an application for a permit to drill on U.S. Bureau of Land Management land, and delays in getting permits approved. Obama will follow up today on his State of the Union remarks with a speech in Las Vegas on liquid natural gas's use in vehicles. He is set to announce a grant for liquid natural gas corridors to provide infrastructure for vehicles, senior administration officials said Wednesday. Also, the Department of Interior today will announce a major offshore lease sale in the Gulf of Mexico totaling 38 million acres, the officials said.
ATLAS ENERGY ENDS FREE January 26, 2012 - For more than 3 years, Walter Sowa says a natural gas company told him not to drink his well water after it drilled near his Westmoreland County home. "The water was so bad, they said not to wash my hands in it or use it for anything," recalled Sowa. Now, according to Sowa, Atlas Energy LP is telling him the water is OK to use again -- and stopped trucking clean water to his home for free more than 2 weeks ago. A Pa. DEP official told the Tribune-Review that the agency is backing Sowa because the company set a precedent in supplying him with water and promised a permanent solution, and because the agency's own testing was inconclusive. Chevron purchased Atlas Energy last year but did not buy all of the company's assets. The gas well near Sowa's home is among 8,500 wells that the newly formed Atlas Energy LP owns. OHIO
BELIEVES IT HAS January 26, 2012 - When West Virginia Gov. Earl Ray Tomblin gets to Houston today to make his pitch for a Mountain State ethane cracker, he'll likely find that Ohio Gov. John Kasich left his business card at the same office two months ago. Officials in Ohio, West Virginia and Pennsylvania are all working to attract the multi-billion-dollar ethane cracker to their states, citing the facility's potential to create thousands of temporary and related jobs. 2
WORKERS SUE FOR INJURIES January 26, 2012 - Two welders claim the negligence of workers for Helmerich & Payne International Drilling Co. of Tulsa, Oklahoma resulted in their severe burns and other injuries during a fire at a Derry Township work site nearly two years ago. According to the lawsuit, the welders were injured on May 20, 2010, when a fire erupted as company workers drilled a gas well. The welders claim company workers caused flammable gas to escape the well and engulf the work site in flames. The welders, who were suspended in a lift about 17 feet above the ground, were consumed by the fire, the lawsuit alleges. January 25 2012 Shale Gas News
COLORADO COUNTY CONSIDERS January 25, 2012 - Boulder County commissioners have asked their staff to review the county's current land-use regulations about oil and gas drilling operations. "We are concerned that there may be a significant increase in the amount of drilling that may take place in Boulder County," said Will Toor, vice chairman of the Board of County Commissioners. "We want to make sure that we have the right regulations in place," Toor said. He said one of the questions the commissioners will be considering is whether it would be appropriate to impose a temporary moratorium on new drilling in unincorporated Boulder County, to give the county's Land Use Department and legal staff time to complete its research and to craft proposals for revisions to present county regulations.
FRACKING COMPLICATES January 25, 2012 – Obama did not mention either carbon or emissions at all, and climate only once. But the word clean or cleaner got eleven mentions, and the president made sure that the first was twinned with cheaper, promising "a strategy that's cleaner, cheaper and full of new jobs". The same rebranding is widespread. In an information paper on "Policy considerations for deploying renewables," published Nov. 23, the International Energy Agency (IEA) put protecting climate and other environmental issues third after energy security. Just as hydraulic fracturing is transforming the outlook for oil and gas supplies in coming decades, it is also revolutionising the context for emissions control policies and climate change. In the mid-2000s, policymakers could draw on the prospect of shrinking oil reserves, medium term shortages, and rising prices to make the case for aggressive action to promote efficiency, clean energy and behavioural changes to cut energy consumption. PUSH
FOR FRACKING BAN January 25, 2012 - After sweeping through the outer limits of New York's Marcellus Shale area, the movement to implement local bans on natural gas drilling is beginning to target the state's potential sweet spot: the Southern Tier. A nascent push to prevent drilling in the 52.5-square-mile Town of Vestal through local legislation has put town politicians on notice and angered landowners, heightening tensions in the already divided municipality. Members of the anti-drilling group Vestal Residents for Safe Energy say their petition to ban industrial drilling in the town is nearing 1,000 signatures, and the effort gained increased clout when an influential environmental attorney advocated for a ban in a presentation this week to the Vestal Town Board. "The gas companies don't have the town's best interests at heart," said Sue Rapp, a member of Vestal Residents for Safe Energy. "But the town board has to."
HINTS FROM HELOISE: SAFELY January 25, 2012 – Natural gas is used for a variety of things, such as to heat water, cook and, of course, as a source of heat. Natural gas is odorless and highly flammable. Gas companies add a “rotten-egg” smell as a safety precaution and warning because leaks, although rare, can occur. Here are some safety hints if you suspect that there is a natural-gas leak in your home… PRESIDENT’S SPEECH MISSES CONCERNS OVER FRACKING January 25, 2012 – During last night’s State of the Union address, President Obama appeared ready to throw the full support of his administration behind the expansion of natural gas drilling operations throughout the country, largely ignoring the outrage and worry expressed by those in affected communities. “We’re alarmed that President Obama cited the industry’s inflated job numbers and natural gas supply numbers and that he used fracking as an example of a government success story when his administration has launched at least two studies into the safety of the gas drilling and hydraulic fracturing.” 9
PA. STATE SENATORS OPPOSE January 25, 2012 - Nine Republican state senators said they oppose a provision in Marcellus Shale regulatory bills that would restrict the ability of local governments to enact rules regarding gas drilling. That opposition, noted in a letter to two top Senate Republicans from a group of mostly southeastern Pennsylvania lawmakers, puts another obstacle in front of finalizing a shale impact fee and regulatory measure in the coming weeks. The nine are senators Richard Alloway of Franklin County, Edwin Erickson of Delaware County, John Rafferty, Stewart Greenleaf and Bob Mensch of Montgomery County, Patricia Vance of Cumberland County, Mike Folmer of Lebanon County, and Charles McIlhinney and Robert Tomlinson of Bucks County. FEDERAL SUIT SETTLED OVER MCKEESPORT BRINE DUMPING January 25, 2012 – Two environmental groups and McKeesport's municipal authority have settled a federal lawsuit that claimed the city was violating state and federal environmental laws by treating wastewater from Marcellus shale drilling operations. Attorneys for both sides and representatives for the city, Clean Water Action and Three Rivers Waterkeeper couldn't immediately be reached for comment. U.S. District Judge Nora Barry Fischer ordered the case closed Monday after the attorneys said they reached a settlement. The two groups claimed that McKeesport's sewage treatment plant was accepting drilling wastewater even though its permit doesn't provide for the treatment of industrial waste. The Pennsylvania DEP in April asked drillers to stop sending wastewater to municipal sewage treatment plants and asked plants to stop accepting it. Story Municipal Authority of McKeesport 3
OHIO AGENCIES SEEK TO SINK January 25, 2012 – The state has since tried many legal avenues to revoke or to not renew a brine-disposal permit for Warren. Under Ohio law, a water-related permit can be revoked or not renewed if water does not meet quality standards of a nearby state. Tom Stewart, executive vice president of the Ohio Oil and Gas Association, said he believes there will be a time when a facility such as Patriot can properly treat brine, but does not believe that technology currently exists. In money terms, Patriot has cost the state — specifically ODNR — about $100,000. Patriot does not pay ODNR’s brine-tax, which is levied on injection wells at a cost of 20 cents per barrel for out-of-state brine and 5 cents per barrel for in-state brine. ODNR made $1 million off the brine tax during the first nine months of 2011. Story Pennsylvania wastewater facilities Contact the Ohio Governor
OBAMA TALKS SHALE GAS, January 25, 2012 - Over the last three years, we've opened millions of new acres for oil and gas exploration, and tonight, I'm directing my Administration to open more than 75% of our potential offshore oil and gas resources. Right now, American oil production is the highest that it's been in eight years. We have a supply of natural gas that can last America nearly one hundred years, and my Administration will take every possible action to safely develop this energy. I'm requiring all companies that drill for gas on public lands to disclose the chemicals they use. America will develop this resource without putting the health and safety of our citizens at risk. The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don't have to choose between our environment and our economy. We have subsidized oil companies for a century. That's long enough. It's time to end the taxpayer giveaways to an industry that's rarely been more profitable, and double-down on a clean energy industry that's never been more promising.
DRILLING RESUMES IN January 25, 2012 - The oil and gas industry has resumed drilling in the 512,000-acre Allegheny National Forest while several court challenges against the practice work their way through the federal courts, an industry lawyer said on Tuesday. Matthew Wolford, an attorney representing the Pennsylvania Independent Oil and Gas Association (PIOGA) and the Allegheny Forest Alliance, said an Erie federal judge's December 2009 order made it clear that companies don't need the U.S. Forest Service's permission to drill. The 3rd U.S. Circuit Court of Appeals in September upheld McLaughlin's ruling, which allowed other legal challenges to move forward. Industry and environmental groups have filed seven federal lawsuits since 2007 challenging how drilling is conducted in the national forest. The groups that Wolford represents filed a lawsuit in 2008 to throw out the Forest Service's 2007 management plan for the forest, which governs land and resource use. The agency imposed new requirements and restrictions on drilling operations. PA.
DEP WEIGHS MINE January 25, 2012 - State environmental officials want to give Marcellus Shale drillers an incentive to use mine water in drilling operations by offering a quick response to proposals within 15 days. The policy outlined at a public meeting Tuesday would couple the natural gas industry's need for massive amounts of water in hydrofracking and the longstanding problem of cleaning up 5,000 miles of waterway in Pennsylvania impaired by acid mine drainage. DEP is delving into a number of issues raised by the pros |
