Monday Marcellus Highlights, Dec. 12, 2011

Now that I can tweet daily Marcellus news, I will only post weekly highlights here at the Old Schoolhouse.  Three main themes were in the news this past week, the endless saga of will we or won't we have an "impact fee" in PA, the continuing drama over contaminated water in Dimock and the growing pipeline infrastructure.


Pennsylvania towns contend with gas pipeline proposals

A number of municipalities in Washington County have spent the past few months crafting regulations for Marcellus Shale gas well drilling pads, compressor stations, processing plants and even employee work trailers. But pipelines? Not so much.

Two of those municipalities in the northern portion of the county, Peters and Union, now find themselves scrambling to brace for proposed pipeline projects on their doorsteps.

"I don't think we thought of it," said Peters Manager Michael Silvestri about why township officials failed to consider pipelines when council approved a gas well drilling ordinance in August.

 'Gas gold rush' prompts pipeline

A Wisconsin construction company is ready to dig under the Monongahela River to complete a major Marcellus Shale natural gas pipeline.

Michels Corp. of Brownsville, Wis., will cause partial navigation channel closures as it completes the project this month between Carroll and Rostraver townships near Donora and Webster, the U.S. Army Corps of Engineers in Pittsburgh announced Thursday.

Dominion Resources of Richmond, Va., is developing the pipeline in response to what is "tantamount to a gas gold rush" in Washington County and outlying areas, company spokesman Charles Penn said. Dominion has contracted with Michels to lay the pipe at the bottom of the Mon, the corps said.

Powerful Pipes, Weak Oversight

There was trouble on the job. Far too many of the welds that tied the pipe sections together were failing inspection and had to be done over.

A veteran welder, now an organizer for a national pipeline union, happened upon the line and tried to blow the whistle on what he considered substandard work.

But there was no one to call.

Pennsylvania's regulators don't handle those pipelines, and acknowledge they don't even know where they are. And when he reported what he saw to a federal oversight agency, an inspector told him there was nothing he could do, either.

Business leaders ask Corbett, Pa. lawmakers for resolution of Marcellus shale legislation

The state's leading business organizations asked Gov. Tom Corbett and legislative leaders to reach agreement on natural gas drilling legislation that would create uniform standards for zoning and impose an impact fee that's competitive with other states.

Activist Group Tries to Deliver Water to Dimock

Anti-natural gas drilling activists travelled from New York City this week to deliver fresh water to residents of Dimock, Pennsylvania.  The trip was as much of an effort to help the residents, as it was an effort to raise awareness of potential health hazards associated with Marcellus Shale drilling.

Dimock has become known as the town where residents can set their tap water on fire. Cabot Oil and Gas had been supplying affected residents with clean water. But the company ended their deliveries a week ago, after the Department of Environmental Protection said that the water was safe to drink.

Marcellus News for Pennsylvania Oct. 31

I've decided to go with daily updates with the latest news.

Shale Gas Fuels Legal Boom

The natural-gas boom in Pennsylvania is stoking legal battles over who owns gas that was worthless until a few years ago but now holds the promise of great wealth.

Residents call for gas drilling regulations

Tapping into the natural gas in the Marcellus Shale formations in Pennsylvania is a good idea, said area residents who attended a public forum Saturday morning in Middletown.
But the gas drilling industry should be regulated to minimize its impact on the environment, said the residents at the forum hosted by state Rep. Steve Santarsiero, D-31.

PGC: Shale, storms will affect 2011 hunt

"This year it's going to be a little more important than just finding out where the food and bedding are. It's also going to be what else is going on. Marcellus shale drilling is now in full swing throughout much of Pennsylvania. A lot of prime hunting areas in the Big Woods area of north-central Pennsylvania, and in the northeast and down through southwestern Pennsylvania are under production for natural gas. There are a total of 148 permits issued for drilling Marcellus shale on state game lands; of that number 50 have been drilled.

Marcellus News for Pennsylvania Update: Sep. 28-Oct. 6

Laser pays lobby penalty

The state Ethics Commission levied the penalty of $1,995 against Laser Northeast Gathering Co. LLC for being nearly two months late in filing the report covering the fourth quarter of 2010. The commission approved a consent agreement with the firm earlier this week. Laser has already made payment.

Community Discussion Showcases Job Training and Workforce Development for Pennsylvania's Natural Gas Industry

Local residents in Youngwood, Pa. joined Congressman Tim Murphy, area leaders, educators and businesses today for a community discussion on natural gas training programs, the impact of workforce development in the region, and the natural gas industry's commitment to safe and responsible development of the Marcellus Shale. The Marcellus Shale Coalition (MSC) and America's Natural Gas Alliance (ANGA) jointly hosted the public event held at Westmoreland County Community College (WCCC).

W. Pa. county 3rd highest jobs gain in nation

The U.S. Bureau of Labor Statistics says that two western Pennsylvania counties were among the top ten in the nation for employment gains in large counties, between March 2010 and March 2011.
Washington County was third, with 4.3 percent growth, and Butler County was sixth, at 4.2 percent. Elkhart, Ind. was on top at 6.2 percent.

Group hopes drillers will agree to spare parks

A Pennsylvania environmental-advocacy group has come up with a plan to keep natural-gas drillers from bringing their rigs, trucks, pipelines, and noise into pristine state parks.

The short version: Get them to pledge not to do it.

Responsible truckers run over in gas rush

The Marcellus gas rush has had a reviving effect on many local industries, but probably none have benefited as much as the trucking business in Pennsylvania.

The process of installing a gas pad and fracking a well require thousands upon thousands of truck trips, hauling equipment and water to remote sites largely inaccessible by any other means of transportation. Over my years covering the issue, I've spoken with dozens of owners of local trucking companies who have said their business has doubled or tripled since the gas companies arrived in the commonwealth.

Their success, however, has been blunted by the arrival of fly-by-night trucking companies, largely run by out-of-state owners looking to make a quick buck on the Marcellus boom, according to local truckers.

Ample supply of natural gas to lower most heating bills this winter

Heating costs for homeowners using natural gas will be lower or stable this fall, a comforting thought as Western Pennsylvania heads into a chilly weekend.
Equitable Gas set its quarterly rate for the fuel at $6.51 per thousand cubic feet, or mcf, starting today. That's down from $7.35 a year ago and $14.45 from fall 2008, when natural gas costs shocked homeowners.

Gas boom means little space for Pa. flood victims

Pennsylvania residents who lost their homes to Tropical Storm Lee more than three weeks ago are having a tough time finding affordable housing, or any housing at all, because workers in the area's natural gas drilling boom have filled nearly every room.

Last month's record flooding has worsened a housing crunch in north central and northeastern Pennsylvania, where a surge in drilling over the past few years has led to housing shortages and skyrocketing rents. Flood victims say that available units are few, and federal disaster assistance doesn't come close to paying the rent on the scattered vacancies that are left.

Shale Gas Producers Going the Extra Environmental Mile, Range Exec Says

Natural gas and oil exploration and production companies have heeded the call to improve transparency and institute better practices in the fast-developing shale resources, but there's more to do as the shale phenomena gets up close and personal in communities all across the continent, according to a Range Resources Corp. executive.
The industry as a whole also has "picked up the ball in best practices," Range Senior Vice President Ray N. Walker Jr. told NGI’s Shale Daily in an interview recently...Unless someone can show us a better way to grow value for our shareholders, we'll stick to the path we've been on.

Drill Fee Proposed for Pennsylvania

Pennsylvania Gov. Tom Corbett proposed a fee on natural-gas drilling of as much as $160,000 a well in an effort to find a middle ground between public support for assessing drillers in the booming Marcellus Shale basin and a campaign pledge not to impose taxes.

Corbett’s Marcellus Shale Impact Fee: Day Two

More reac­tion and analy­sis on Gov­er­nor Corbett’s pro­posed impact fee on nat­ural gas drillers.
The Post-Gazette reports envi­ron­men­tal groups aren’t thrilled with the idea, even though it includes pro­vi­sions like increased set­backs between wells and water­ways, and stricter penal­ties for drillers.

Breaking down Corbett's drilling fee proposal

On Monday, Gov. Tom Corbett made a long-awaited announcement giving his blessing to allowing Pennsylvania's counties impose an impact fee on Marcellus Shale drillers.

The fee would let counties charge $40,000 per well in the first year, $30,000 in the
second year, $20,000 in the third year and $10,000 in the fourth through tenth
years, adding up to a potential total of $160,000 per well.

The impact fee revenues will be split, with 75 percent being retained at the local
level and 25 percent of the fee divided among state agencies.

Of the local money, 36 percent would got to the county, 37 percent would be distributed to municipalities with actual drilling and 27 percent would be distributed to all the municipalities within a Marcellus drilling impacted county.

WVU Researcher to Map Methane Sources in Monongahela-Area Drinking Water

Oil and gas operators and residents in the Marcellus shale region have become aware that drinking water can contain dissolved methane. But did it come from hydraulic fracturing, previously abandoned wells or from some other source?
Now a West Virginia University researcher is gathering data to help answer that question for aquifers in the Monongahela River watershed.

Newspapers seek opening of Marcellus lawsuit settlement

Washington County Judge Paul Pozonsky is questioning whether the Pittsburgh Post-Gazette and Washington Observer-Reporter newspapers have the right to intervene in a Marcellus Shale case that was settled in his chambers in August.

The Post-Gazette asked the judge to unseal the settlement between the plaintiffs, Stephanie and Chris Hallowich of Mount Pleasant Township and various defendants including Range Resources Corp. and MarkWest Energy Partners and Energy Group.

 Tea and gas don't mix well 

The Northeast Pennsylvania Tea Party is launching robo-calls, bashing congressmen Tom Marino, R-10, of Cogan Station, and Lou Barletta, R-9, of Hazleton, diehard conservative Republicans who have often identified themselves as members of the Tea Party.
In fact, it’s their Tea-esque rhetoric that helped get them elected, many observers have said.
So, why would the herd be turning against their own?
Two words: Natural gas

Pennsylvania Marcellus News Roundup, Aug. 22-30

Energy Department says it will slash Marcellus Shale gas estimate, after USGS report

The USGS report, released Tuesday, estimates that the eight-state Marcellus Shale region contains some 84 trillion cubic feet of undiscovered, recoverable natural gas. That amount is far higher than the geological service had estimated in a 2002 report, but far below a recent projection by the Energy Department.

 The conflicting reports prompted confusion and finger pointing amid growing questions about the extent of natural gas reserves available in the Marcellus region, which is in the midst of a drilling boom stretching from New York to West Virginia.

Natural Gas Reserves Debate Intensifies

A new US government estimate for the amount of natural gas contained in the Marcellus Shale is sharply lower than earlier projections.

But the new estimate has not undermined expectations that the Eastern US field will become one of America's most important energy sources in coming years.

Natural-gas data fuels ‘fracking’ battle

New federal estimates of the natural-gas resources beneath Eastern states are quickly touching off fresh battles over the controversial hydraulic fracturing drilling method.
The U.S. Geological Survey this week greatly increased its estimate of recoverable natural gas in the Marcellus Shale formation that underlies major areas of Pennsylvania, New York and other states.
But while USGS boosted its mean estimate from 2 trillion cubic feet to 84 TCF — almost enough to meet four years of current U.S. demand — the figure is far lower than the federal Energy Information Administration’s (EIA) most recent projection.

Study shows questions remain about economic benefits of Marcellus Shale

The results suggest that in 2009, Marcellus Shale development supported between 23,385 and 23,884 jobs in the state and generated around $3.1 billion in economic activity. This included about $1.2 billion in labor income and nearly $1.9 billion in added value.

"These results are about half the size of those estimated in previous Marcellus economic-impact studies," Kelsey said. "But this isn't surprising because we had more detailed information about leasing and royalty income. Our results confirm that where leasing and royalty dollars are going significantly influences the estimated overall impacts."

SEC Bears Down on Fracking

The federal government's investor-and-markets watchdog is stepping into the heated environmental debate surrounding hydraulic fracturing, or "fracking," according to government and industry officials, even as state and federal environmental officials have begun to bring greater pressure on the industry.

EPA meets with Pa. residents over drilling fears

More than a dozen people met with a contingent of federal officials in a private home in Susquehanna County, near the spot where a pipeline company was forced to halt work this month after repeated spills of nontoxic drilling mud into one of the state's most pristine streams.

Ross Considers Ordinances to Regulate Marcellus Shale Drilling

Ordinances to control Marcellus Shale drilling in Ross Township will soon be on the table for consideration, officials said.

UGI says region will be first to go all-Marcellus

UGI Utilities Inc. plans to make the Scranton/Wilkes-Barre area its first region in Pennsylvania where customers will receive all their natural gas from the Marcellus Shale.

Western Pa. artists to air both sides of fracking

A tiny art gallery named for northwestern Pennsylvania's 19th century oil boom is asking local artists to weigh in on both sides of the fracking debate as Marcellus Shale gas drilling increases in the state.

One Month Later, Corbett Stays Vague On Marcellus Report’s Recommendations

...in late August, Corbett is staying vague on which of the commission’s 96 recommendations he’ll stick with, and which he’ll cast aside.

“We’re still reviewing it in detail,” he said at the Elizabethtown Fair, in rural Lancaster County. “We’re looking at the entire report, not just any one aspect. Breaking it down, as to what can we do without legislation? What may require regulation. What’s the time frame in that.”

The comments mirrored what Corbett told reporters on July 28: “I’m still reading it,” he said at the time.

Earthquake centered in Va. rolls across Pa.

The quake did not appear to have any impact on natural gas drilling in the Marcellus Shale region of Pennsylvania. The state Department of Environmental Protection, the Marcellus Shale Coalition trade group and representatives from drilling companies Chesapeake Energy Corp., Range Resources Corp. and Chief Oil & Gas LLC all said there were no reports of damage.

Nutter resists a role in shale showdown

The Convention Center next month will host a conference called Shale Gas Insight 2011, bringing some of the biggest names in the energy industry - and their political patrons - to Philadelphia.

As mayor of the host city, Michael Nutter no doubt would like to welcome the industry bigs and thank them for bringing their business here, something he occasionally does for conventioneers.
But as a Democrat who wants to make Philadelphia the greenest city in the nation, he could be seen as betraying core principles and political allies.
Instead, he seems determined to stay on the sideline.

State Rep. Boyle Supports Natural Gas Extraction Tax

Despite promises by Governor Tom Corbett to veto any legislation that taxes companies extracting natural gas from the Marcellus Shale formation, State Representative Brendan Boyle believes that the tax will happen in the near future.

Marcellus Shale sparks start-up’s plans to build ethane plant

Aither Chemicals LLC CEO Len Dolhert said his company’s technology for converting, or cracking, ethane extracted from the wet part of the Marcellus Shale play can be used for plants as small as $200 million. Capital costs for a traditional steam cracker would be expected to be at least $1 billion.

Citizens Marcellus Shale Commission Schedules Hearing in Williamsport

The Citizens Commission will hold five hearings across Pennsylvania to seek citizen perspectives on the Marcellus Shale. Sign up to participate at our first hearing on Wednesday, August 31, 2011, at South Fayette Middle School in McDonald, Pa. (near Pittsburgh). All hearings will be held from 6-9 pm and include time for public comment.

Referendum seeks borough drilling ban

Voters in State College will be asked in November to ban the extraction of natural gas within borough limits.

That question is part of an environmental bill of rights supported by the advocacy group Groundswell PA, which petitioned for a referendum on the issue on the general election ballot Nov. 8. The county’s Board of Elections approved Friday putting the referendum question on borough ballots.

Information on drilling fluids hard to come by in Pennsylvania

Pennsylvania is one of only four states with regulations in place requiring drillers to disclose on a well-by-well basis the additives and chemicals used in fracturing fluid injected deep underground into oil and natural gas wells. But the state is the only one not to post the data on the Internet.

New bills address digging near gas pipelines

Rep. Matthew Baker, R-68, Wellsboro, and Sen. Lisa Baker, R-20, Lehman Twp., are introducing bills in their respective chambers to bring gathering lines under a state law that provides a notification process to alert construction workers where underground lines are.

Stateline: PA Schools Fill Budget Cuts With Drilling Money

In late July, the Blackhawk School District, 40 miles northwest of Pittsburgh, joined a handful of other school districts in Pennsylvania looking to cash in on the state’s natural gas boom.
In a vote of seven-to-one, the school board agreed to lease 160 acres of the district’s land to Chesapeake Energy, the largest holder of mineral rights in the Marcellus Shale region, which lies underneath Pennsylvania and neighboring states.

US Energy Agency: PA Driving Northeast Gas Production

...Marcellus Shale drilling is driving the boat, when it comes to natural gas production in the northeast region. Pennsylvania, in particular, has seen a rapid boom, and now leads the way.

Marcellus News Update for Pennsylvania: July 12-19

Snakes on the Marcellus shale: a business idea

Bob Zumstein has been lecturing on timber rattlesnakes for years and recently had been invited to talk to two Marcellus Shale companies about where workers might encounter these venomous suckers and what they should do if they spot one.

Chief Oil & Gas cleared of water contamination charges by Pennsylvania DEP

Source: Chief Oil & Gas

In April 2011, Crystal Stroud of Granville Summit, Bradford County, PA accused Chief Oil & Gas of contaminating her water well, which had been found to contain high levels of barium and lead. In numerous public appearances and radio and television interviews, Ms. Stroud stated that a well drilled by Chief had caused water contamination and health problems for her and her family. A thorough investigation showed that Chief Oil & Gas is not responsible for the water well contamination or health claims of Crystal Stroud.

Frack humor falls flat for energy company

When the folks at Talisman Energy dreamed up a children's coloring book about a dinosaur explaining the origins of natural gas, they had no idea that the "friendly fracosaurus" would become a casualty in the anti-fracking cultural wars.

$200 Million Lost to Legislative Inaction on Drilling Tax

Pennsylvania has lost $200 million from legislative inaction on a Marcellus Shale drilling tax — revenue that could have prevented state cuts to schools, colleges and health services for the state's most vulnerable.

Bishops, nuns and rabbis debating gas fracking

"We have people's lives who are being blessed or adversely affected by this," said Bishop Thomas Bickerton of Pittsburgh, who leads more than 800 United Methodist congregations and 187,000 members in western Pennsylvania, where major drilling is taking place.

"The conversations within the church are rather lively and robust," Bickerton said, and he thinks gas drilling "warrants some careful looking" by religious groups and public officials.

Panel Backs Pennsylvania Drilling Fee

A controversial fee on natural-gas drilling in Pennsylvania, the only state that doesn't tax natural gas extraction in some form, is being recommended by a commission appointed by Gov. Tom Corbett.

Marcellus commission ends day, passes 100 recommendations

The commission has ended its votes for the day, passing nearly 100 recommendations.

Environmental groups have already come out against the recommendation on forced pooling. The recommendation should be a big test for the commission and Gov. Tom Corbett as many legislators and Corbett himself previously promised to fight any push for it.

Corbett panel's report backs impact fee on Marcellus Shale drilling

Gov. Corbett's advisory panel on drilling in the Marcellus Shale endorsed a long list of recommendations Friday on how to deal with the burgeoning industry, including imposing a local impact fee - not a tax - on the extraction of natural gas.

Trade association asks PUC to reconsider public utility status

The trade association representing Pennsylvania's oil and gas industry convinced the state Public Utility Commission to reconsider making natural gas pipeline company Laser Marcellus Gathering Co. LLC a utility.

 Corbett panel's report sets guidelines for Marcellus drilling

Broadly speaking, the recommendations endorse the industry's call for modernizing the regulatory structure of shale-drilling and creating uniform local zoning rules to streamline approval processes. The commission also endorsed boosting markets for the fuel with incentives for using natural gas in transportation, electric generation, and manufacturing.

 Halliburton’s living large on gas shale

With energy companies like Halliburton HAL talking up growth in U.S. shale regions that offer rich returns in oil and natural gas liquids such as propane and ethane, it’s no wonder that Royal Dutch Shell is bailing out of a Canadian pipeline project to bring down natural gas from the Arctic.

Rex Energy settles Marcellus rights lawsuit by 230 western Pa. property owners for $14M

The Pittsburgh Tribune-Review reports Westmoreland County Judge Gary Caruso signed off on the settlement between the landowners and the State College-based gas-drilling firm, which admits no wrongdoing as part of the settlement.

Pa. treatment plant sued over drilling wastewater

 Two environmental groups sued a Pittsburgh-area municipal sewage plant on Tuesday, saying it never got a permit from the state to treat often-toxic Marcellus Shale drilling wastewater, although the plant's head said it has stopped treating the wastewater.

Oil, gas industry wants water ban overturned

The Pennsylvania oil and gas industry is asking a federal judge to overturn a federal ban on using surface and groundwater in the Allegheny National Forest to conduct hydraulic fracturing at Marcellus shale well sites there.

Pennsylvania Marcellus News Roundup, June 13-20.

United Methodists call for halt to drilling

United Methodists representing 950 churches across Northeastern and Central Pennsylvania passed a resolution calling for a temporary halt in gas well drilling in the Marcellus shale as well as an impact tax on those places where drilling already has taken hold.

Quinn seeks fee on gas drilling

State Rep. Marguerite Quinn said she is all for the jobs the burgeoning Marcellus Shale natural gas industry is growing in Pennsylvania, and is not seeking to “stifle” that success.

But before the 143rd District Republican looks to the future, she winces at the “past lessons we have learned through the coal industry.” She points to the environmental nightmares, health problems and infrastructure challenges coal’s legacy left the commonwealth.

 Wagner: Schools should benefit from Marcellus shale

Jack Wagner urged Beaver County school officials to begin lobbying for a natural gas extraction tax and then for a share of the revenue generated by it. 

 Survey finds Marcellus drilling popular

Six in 10 Pennsylvania residents support natural gas drilling in the Marcellus Shale, and an equal number support a tax on the companies drilling there, according to a poll on Pennsylvania politics released Tuesday.

 Fee for Marcellus Shale Drilling passes committee

The Senate Environmental Resources and Energy Committee, chaired by Sen. Mary Jo White (R-21), today approved amended legislation that would impose an impact fee on natural gas drilling in Pennsylvania.

 Marcellus Shale Drilling Tax Takes Center Stage at Montco Meeting

State government representatives and advocates for a Marcellus Shale drilling tax hosted a breakfast meeting Monday at Lehman United Methodist Church in Hatboro.

Pa. makes recommendations to monitor cancer, other illnesses in fracking areas

Pennsylvania's Department of Health wants to start tracking health and environmental data relating to natural gas drilling in the state's Marcellus Shale.

New Website Levels the Playing Field in Marcellus Shale Debate

A new website aimed at organizing the avalanche of information on all things Marcellus Shale was announced today by the Pennsylvania Environmental Council (PEC). “MarcellusFacts” (www.marcellusfacts.org), scours the internet continuously for news and information on Marcellus Shale and aggregates it into an easy-to-read format. Material is gathered from such sources as Google News, RSS feeds and audited news sites, and organized into a clear and concise format for computers or smartphones.

Ridge: Gas industry must improve public image

Former Pennsylvania Gov. Tom Ridge, now a consultant to the natural gas industry, said Thursday that drillers operating in the Marcellus Shale recognize they need to improve their image if they want to be "warmly embraced" by the public, not just "grudgingly accepted."

 DEP examines report of gas in Lycoming Co. wells

State environmental officials are investigating new instances of methane contaminating private residential water wells and bubbling up in a northern Pennsylvania stream near a Marcellus Shale natural gas drilling operation.

Marcellus aids Pa. jobless rate

Pennsylvania's jobless rate fell slightly to 7.4 percent in May as the booming natural gas industry added more jobs, the state said on Thursday.

Bill to tap Marcellus drilling money accumulate as budget deadline looms

A short discussion, a unanimous vote and the deed was done — the Senate Environmental Resources and Energy Committee sent to the floor of the Legislature a bill to extract tens of millions of dollars annually from natural gas drilling on the rich Marcellus Shale formation,

Pa. lawmaker introduces another bill to levy impact fee on Marcellus Shale gas drilling

A new Marcellus drilling impact fee bill in the House is generating a buzz and drawing support from several Republican lawmakers representing Northeast Pennsylvania as well as environmental groups.

Ohio taking in flood of Pennsylvania brine for disposal

Millions of barrels of salty, toxic wastewater from natural-gas wells in Pennsylvania are coming into Ohio despite efforts to keep it at bay.

Methane found in seven water wells near XTO Energy natural gas drilling sites in Pennsylvania

Pennsylvania environmental officials are investigating new instances of methane in seven water wells in an area where Fort Worth-based XTO Energy is drilling natural gas wells in the Marcellus Shale play.

Marcellus News for Pennsylvania Update: June 2-10

Well it looks like I can't count on having enough time to do daily updates, so I will have to go back to weekly roundups.
Prices Fall for Some Gas-Rich Shale Land

The gas-rich land of the Marcellus shale has offered some of the hottest wildcat real estate in recent years. But if Exxon Mobil’s recent $1.7 billion acquisition is any indication, the days of eye-watering prices are over. The oil titan is paying barely half the price such acres were fetching last year, as the frenzy has shifted to Texas.

Pa. Lawmaker Wants Traces on Frack Fluid, Baseline Water Well Tests 

Baseline water tests for those living near new natural gas wells could cost up to $1,000 each. Advocates say it's important for residents to get the tests before any natural gas well is drilled close to their property.
Pennsylvania Rep. Mike Sturla says the state should pay for those tests through a tax or an impact fee on natural gas drillers. Sturla also says the industry should include a chemical tracer in the frack fluid used to drill the well.

Hundreds at Capitol Rally for Action on Marcellus Drilling

Hundreds of Pennsylvania residents rallied at the State Capitol today protesting the state legislature’s inaction on Marcellus Shale drilling. The coalition of groups holding the rally called it the largest that Harrisburg has seen to date protesting Marcellus Shale gas drilling.

Exxon Mobil Pays $1.69 Billion for Natural Gas Companies With Holdings in Marcellus Shale

Irving-based Exxon Mobil Corp., the largest U.S. natural-gas producer, has expanded its gas holdings with the purchase of two companies with reserves in the Marcellus Shale, Bloomberg News reports.

 Bath Forum Will Address Drill Cuttings in Landfill

The Bath Peace and Justice Group and several other organizations will sponsor a forum at 7 p.m. June 13 at the Bath Fire Hall, 50 E. Morris St.

The purpose of the forum is to discuss a recent decision by the Steuben County Department of Public Works to accept Marcellus shale drill cuttings from Pennsylvania at the county landfill.

 Pennsylvania Eyes Natural Gas Tax on Biggest US Find

Accusing the government of being unable to protect the environment or public health, more than 200 people rallied on Tuesday in the Pennsylvania Capitol for tougher laws — if not an outright ban — on natural gas drilling as pressure builds on state lawmakers to approve a levy on the booming industry.

Hunting club contends with spring water contamination from gas drilling

Spring water, cold as winter and clear as a windowpane, gushes out of mossy ground in a clearing sprinkled with blooms of forget-me-not next to Stone Camp, the home of the Sykesville Hunting Club in the Moshannon State Forest.
The bubbling flow has attracted generations of folks from Clearfield County and beyond, but staked into the ground now is a homemade sign bearing the warning: "Contaminated Water."

Officials fear loss of local control: Proposed impact fee bill would standardize gas drilling rules across state

A natural gas impact fee proposal gaining traction in Harrisburg is drawing stiff resistance from some local officials, who are concerned the bill will limit the amount of control they can exert over drilling in their municipalities.

 Cawley: No evidence of pollution from fracking 

Pennsylvania Lt. Gov. Jim Cawley on Friday said that there was no documented evidence of water being affected by the fracking process used in the mining of Marcellus shale natural gas.
Yet his comments come in sharp contrast with recent violations reported by the state Department of Environmental Protection.

Marcellus News for Pennsylvania Daily Update: June 1

I'm going to try daily updates and use a new format. So without further ado -

Police Prepare for Marcellus Drilling

It hasn't come to Moon yet, but Police Chief Leo McCarthy said his department would be ready.

McCarthy and other law enforcement officials last week received a crash course on the impact of Marcellus Shale drilling on Pennsylvania communities...

More than 200 state and Federal law enforcement officials were briefed on the potential environmental effects of drilling, as well as how it could lead to spikes in community crime rates.

 NY attorney general suing feds over gas drilling

ALBANY, N.Y. (AP) — The federal government should conduct a full environmental review that weighs potential damage to the welfare of people in the Delaware River watershed and the drinking water quality for millions of New Yorkers before allowing natural gas drilling in the region, the state's attorney general said in a federal lawsuit filed Tuesday.

Antero will spend more on drilling

Oil and natural gas company Antero Resources on Tuesday said it will spend $126 million more on capital expenses this year than originally forecast as it increases its drilling activity.

Monday Marcellus News Roundup, April 11

Politics, Policy and Legal Issues
Republican lawmakers in Pennsylvania are pushing bills that "use tax credits and grants to expand the number of natural gas-powered vehicles on the state's roads." The state goal is to encourage that gas drilled in PA is used here.

Drilling companies are suing or threatening to sue Mt. Pleasant and North Bethlehem Townships over regulations the local governments have passed. 

Plum Borough is discussing restrictions on where drilling can occur within the borough's jurisdiction.

Class action and personal injury lawyers are anticipating work resulting from accidents and environmental disaster scenarios related to Marcellus drilling.

Along these lines, Marcellus Shale Oil and Gas Litigation Group has been formed in Bradford County to assist landowners with legal issues regarding leasing, royalties etc. related to gas drilling.

Business, Development and Operations
Terry Engelder, of Penn. State, is talking up the potential of other gas-bearing shales in Pennsylvania, the Utica and Upper Devonian Shale units. Please see his website for details on his research.

Despite 1,797 leases by Range Resources and Chesapeake Appalachia in Beaver County, development has been slow to date for a number of possible reasons, including a "depressed gas market."

Drilling around Williamsport has created such a demand for diesel and other mechanical technicians that other business are having trouble finding qualified applicants, at least according to anecdotal reports. Would be nice to see some hard numbers, and some interviews with the people who took the gas jobs over other ones. Not saying its not happening (and it would makes sense that it would), but this story reads like boosterism.

In Bradford County, where more wells have been drilled than any other county in PA, there is hard data on jobs, as the unemployment rate there has fallen to the lowest countywide in the state.

More jobs news: US Steel operations are returning to McKeesport for the first time since 1987. It is speculated that this is due to the demand for pipe and other tubular steel in drilling operations, so we don't have hard data that this development is indeed related to Marcellus development.

A Wyoming County Chamber of Commerce Gas Expo attracted hundreds - two hundreds in fact.


Another industry expo was held in the East Wing of the State Capital. Good use of public property...

Environmental
New guidelines from the DEP will require twice-monthly testing for radioactive material in publicly owned waste-water treatment plants. Natural occurring radioactive minerals may be found in fracking waste and concern over contamination from these materials has become a contentious issue.

EPA head Lisa Jackson said she has tried to reach PA Governor Corbett to discuss drilling regulations, but he hasn't returned her calls. Corbett denies this. I would think the truth could be found in the phone records, not from some political staffer, but from the phone company.

Little bit of trivia, Ray Walker, Range Resources VP for Marcellus ops made $1.9 million in 2010.

 

The DEP has ordered Catalyst Energy Inc. to stop drilling and hydraulic fracturing on thirty-six natural gas wells because of contamination of two nearby home water wells.

Gas Shale News for the Keystone State, 10/11 edition

Fell behind here and there has been a lot of news. However, much of it is election noise, so here are the distilled highlights for the past 10 days:

Pooling-
The pooling concept is not gaining much traction in the state capital yet. I'll post soon on the details and issues of pooling.

Election gas-
Corbett and Onorato continue to quarrel over who gets what from the gas industry. Psst, they both get something. Chester County Commissioner Kathi Cozzone ripped Tom Corbett for his opposition to the tax, citing the contributions he's received from the industry.

Activism and opposition-
Jeff and Jodi Andrysick of Pulteney produced a documentary on the hazards from fracking and wound up on that terror watch list generated by the privatized security apparatus (neo-Pinkertons) the state was using.
In related news, the state's Homeland Security chief  has resigned over said watch list fiasco.
Also, there is now a pro-drilling doc produced as an answer to Gasland.
The Senate has passed a bill allowing local governments to charge citizens for reviewing public documents, which has activists up in arms.

Severance tax-
The severance tax is unconstitutional, at least according to Americans for Tax Reform, a group led by noted anti-tax guru Grover Norquist, who has spent much of his life in various Republican administrations and as a lobbyist.
In any case, the House left Harrisburg until after the election, so there will be no reconciling their tax bill with a senate version until then.
Meanwhile, Gov. Rendell has called for a summit to figure out the severance tax, and the Chesapeake Bay Foundation stated in a letter to the Senate that not passing a tax will eventually cost taxpayers billions to cleanup contaminated water.
The Towanda Daily Review has an editorial criticizing the distribution of revenue from the proposed severance tax, saying it does not provide enough to local governments and needs.

Property rights and Royalties-

Judge John Jones of the U.S. Middle District Court  dismissed three cases this week in which the plaintiffs argued their leases violated the Pennsylvania Guaranteed Minimum Royalty Act. Apparently "royalties could be calculated by subtracting from the sales price all but one-eighth of the expenses incurred while moving the natural gas from the wellhead to the marketplace." So in essence the property owners felt they got screwed, but the court say its all legal and in other words all that money you think your going to get from allowing drilling on your land may be just an illusion, since the companies can expense away all the royalties you think you're getting.

Pollution and violations-
The State Police are cracking down on trucks hauling fracking wastes, ordering out of service 140 hauling waste.  208 in total were taken off the road, out of 1,135 inspected.
There was more news on the state DEP going after Cabot Oil and Gas for alleged well contamination. In any case Cabot is doing well, even though prices are down due to the strong production from gas shale and conventional sources.
Seneca Resources Corporation has been fined $40,000 by DEP for filling parts of wetlands in Tioga State Park.
Martin Niverth of the Upper Monongahela River Association, "does not want West Virginia to make the same mistakes in regulating Marcellus Shale natural gas drilling that he believes his home state of Pennsylvania made." Pretty bad when you're used as an example of lax regulation in West Virgina!

Business operations-
Westmont Resources is expanding their Marcellus operations. Anschutz Exploration Corp. will be selling theirs.