Tuesday, June 26, 2012

PA Marcellus News Digest 6/26/12

PA Marcellus News Digest
June 26, 2012

Releases

What They’re Saying: American Natural Gas Benefits “Cannot Be Denied”
Wallaby
June 26
Pittsburgh, Pa. – The American economy continues to limp along, as “unemployment rates rose in 18 U.S. states in May, the most in nine months,” according to the USA Today. And while there’s no denying the very real challenges our nation’s economy faces, there’s also no denying the benefits tied to the safe, responsible development of America’s abundant natural gas resources: tens of thousands of private sector jobs, a manufacturing rebirth, cleaner air, strengthened national security. In short, tightly-regulated domestic natural gas production is Building a Stronger, More Secure America. Here’s what they’re saying.
Link:
http://wallaby.telicon.com/PA/library/2012/2012062691.HTM

OIL AND GAS DEVELOPMENT AGREEMENTS TO BENEFIT WILDLIFE
June 26, 2012
For Information Contact:
Jerry Feaser
717-705-6541
PGCNews@pa.gov(full text below)

The Pennsylvania Board of Game Commissioners today approved three oil and gas development agreements that will provide much-needed revenue for the Game Commission to either deposit into the Game Fund or an interest-bearing escrow account for the future purchase of wildlife habitats, lands or other uses incidental to hunting, furtaking and wildlife resource management.

The first item, which is an amendment to a previous oil and gas agreement involving a 1,930-acre portion of State Game Land (SGL) 268 in Morris Township, Tioga County, allows Endless Mountain Energy to include an additional 413.3 acres for non-surface use and will not require any additional surface impacts.

The terms of the amendment will remain consistent with the existing agreement, which was approved by the Board in April of 2011, which includes a paid up, five-year, oil and gas agreement, a $3,500 per acre bonus payment, $25 per acre rental, and a 20 percent royalty.  The total bonus payment will be approximately $1,446,550 and will be deposited into the Game Fund or an interest bearing escrow account for the future purchase of wildlife habitats, lands, or other uses incidental to hunting, furtaking and wildlife resource management.

The second item involves the oil and gas rights owned by the Game Commission under a 3,710.33-acre portion of SGL 36 in Albany and Monroe townships, Bradford County, and is with Chesapeake Appalachia, L.L.C. of Oklahoma City, Oklahoma. The terms of the agreement are a paid up, five-year, restricted surface use oil and gas agreement, a $2,000 per acre bonus payment and a 20 percent royalty.

Chesapeake Appalachia already has a strong lease position surrounding this portion of SGL 36, and has initiated well drilling and development programs on adjacent private lands.  Chesapeake Appalachia has the ability to unitize the Game Commission’s oil and gas reserve by horizontal drilling from adjacent private lease holdings with no disturbance to the surface of SGL 36.

“As this oil and gas development agreement will not involve any surface impacts on SGL 36, the Game Commission staff focused on negotiating with Chesapeake Appalachia to safeguard the prudent development of the agency’s oil and gas reserve and simultaneously protect the wildlife resources and recreational use of SGL 36,” said Bill Capouillez, Game Commission Bureau of Wildlife Habitat Management director.”

The bonus payment of $7,420,660 will be deposited into the agency’s Game Fund or an interest bearing escrow account for the future purchase of wildlife habitats, lands, or other uses incidental to hunting, furtaking and wildlife resource management. Future rentals and royalties will be deposited into the Game Fund.

The third item, which was announced for competitive bid in May, involves the oil and gas rights owned by the Game Commission under a 3,177.7-acre portion of SGL 36 in Monroe and Overton townships, Bradford County, and also is with Chesapeake Appalachia.

The lease agreement includes a one-time bonus/rental payment of $2,000 per acre for a five-year, paid up, primary term, and a 25.5 percent royalty. Additionally, the bid provides the Game Commission a well pad location fee of $250,000 per well pad, if well pads are necessary on the surface of SGL 36. The agreement also restricts surface use to a 260-acre area, and a limit of two well pads for development. The agreement will include a free gas provision for the Game Commission to use free-of-charge up to 350,000 cubic feet of gas annually or an annual payment for non-use of the free gas.

Oil and gas development include a $50,000 performance bond. The agreement will include the Commission’s standard wildlife and environmental protection measures.

The bonus payment of $6,355,400 will be deposited into the agency’s Game Fund or an interest-bearing escrow account for the future purchase of wildlife habitats, lands, or other uses incidental to hunting, furtaking and wildlife resource management.

On all three agreements, oil and gas development will be regulated by the Department of Environmental Protection’s oil and gas regulations, and the Game Commission’s standard oil and gas development cooperative agreement and standard wildlife and environmental protection measures.

“The bottom line is that both agreements involving SGL 36 effectively maximize the agency’s ability to allow for prudent oil and gas development by leasing 10.7 square miles (or 6,888 acres) of SGL 36, while simultaneously drastically reducing the overall needed use of that entire surface acreage down to a mere estimated 26 acres total,” Capouillez said. “The initial revenues and future royalties will directly benefit hunters and trappers and wildlife in years to come as we continue to target key land acquisitions for our State Game Lands, and provide a much-needed source of funding to further our agency’s wildlife resource program initiatives.” 

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Articles

Don't re-elect those who backed gas law
Standard Speaker
Bill Skuba
Letter to the Editor
June 26
Nearly 50 percent of Americans plan to use their home equity to help finance retirement even though $7 trillion in home values disappeared during the housing bust. But, an even greater potential threat to home values looms: Act 13. This Pennsylvania Marcellus shale gas bill became law in February 2012 and allows a 140-foot-tall gas rig to be located in a residential zoned area, subject only to a 500-foot setback from a house or well.
Link:
http://standardspeaker.com/opinion/letters/don-t-re-elect-those-who-backed-gas-law-1.1334655

Court denies industry intervention in Act 13 suit
Observer-Reporter
June 26
Natural-gas industry representatives hoping to overturn the delayed implementation of certain parts of Act 13 were denied a request to intervene in the case Friday by the Pennsylvania Supreme Court.
Link:
http://www.observer-reporter.com/or/story11/Act-13-brief

Consol puts $500K on fracking fix
Pitt Trib
Thomas Olson
June 26
Consol Energy Inc. announced a $500,000 investment in a local company on Monday to solve a common Marcellus shale problem: how to handle toxic fracking fluid that frees the natural gas.
Link:
http://triblive.com/business/2093107-74/consol-fracking-fluid-gas-shale-solar-epiphany-marcellus-coal-energy   
Consol invests in Epiphany's water treatment technology
Post-Gazette
Elizabeth Bloom
June 26
In an effort to clean up water used in natural gas extraction in the Marcellus Shale -- and maybe offer a boost to the reputation of the hydraulic fracturing industry -- Consol Energy, the coal and natural gas producer based in Cecil, announced Monday it has invested $500,000 in Epiphany Solar Water Systems, a New Castle start-up company that uses solar power to purify water.
Link:
http://www.post-gazette.com/stories/business/news/consol-invests-in-epiphanys-water-treatment-technology-641932/

It's 'cooked air'
Post-Gazette
John S. Detwiler
Letter to the Editor
June 26
[...]Shell hasn't even made suggestions about "jobs"; the dreamy "jobs" forecasts come from politicians and trade groups, with no skin in the game, who gain from the speculation. Their estimates -- hundreds, thousands, tens-of-thousands -- are, as a German physicist used to say, "cooked air": the output of incomprehensible calculations performed upon incredible assumptions. You strain journalistic ethics to parrot their numbers in your editorial, when you could not possibly check their legitimacy.
Link:
http://www.post-gazette.com/stories/opinion/letters/its-cooked-air-641921/

2012 PA Gas Drilling Down 14% to 21% & Back To 2010 Levels
John Hanger's Facts of The Day
Blog
June 25
The boom is far from bust, but the pace of gas drilling in Pennsylvania is slowing, as a result of sustained, rock bottom gas prices that also are delivering massive savings to consumers and causing large displacement of coal generation by natural gas power plants.  Drilling activity in 2012 will be lower than in 2011 and back to 2010 levels, according to data gathered at
www.marcellusgas.org.
Link:
http://www.johnhanger.blogspot.com/2012/06/2012-pa-gas-drilling-down-14-to-21-back.html

Fracking foes pray and protest
Fear impact on "God’s creation"
Sharon Herald
Tom Davidson
June 25
[...]The members of Ohio Fracktion come from throughout the Mahoning Valley. They include McDonald, Ohio residents Jonathan Sidney and John Williams.
Sidney played a violin to start the prayer service and Williams listened as the Rev. Monica Beasley-Martin, an itinerant elder of the North Ohio Conference of the African Methodist Episcopal Church, led the short service.
Link:
http://sharonherald.com/local/x439051837/Fracking-foes-pray-and-protest

Royalty tax withholding proposal gets low marks from gas leaseholders' group
Citizens Voice
Laura Legere
June 25
A state proposal to have gas drillers automatically withhold state taxes from lease and royalty payments is drawing criticism from landowners who say they already struggle to ensure they are receiving proper payment for their gas rights.
Link:
http://citizensvoice.com/news/royalty-tax-withholding-proposal-gets-low-marks-from-gas-leaseholders-group-1.1334434

$1.6 Million Settlement in Contaminated Water Fracking Case
Philadelphia Weekly
Daily Grinder
Randy LoBasso
Blog
June 25
Three northeastern Pennsylvania families have reached a $1.6 million settlement with Oklahoma-based Chesapeake Energy over contaminating their water wells and forcing them to go somewhere else.
Link:
http://blogs.philadelphiaweekly.com/phillynow/2012/06/25/daily-grinder-1-6-million-settlement-in-contaminated-water-fracking-case/

Independent study finds significant fault line methane leaks near PA natural gas operations
Clean Air Council
June 26
A water and methane geyser, bubbling water, and mud volcanoes have Pennsylvania shale-field residents scared and demanding answers.  A number of dramatic methane emissions were reported to have begun in Leroy Township, Bradford County on May 19, 2012.
Link:
http://www.cleanair.org/program/outdoor_air_pollution/marcellus_shale/independent_study_finds_significant_fault_line_methane

New Jersey Senate Bans Treatment of Fracking Waste
NY Times
Green
Blog
Mireya Navarro
June 25
[...]The natural gas drilling process known as hydraulic fracturing, or fracking, is not taking place in New Jersey. But legislators and environmentalists are concerned about the state’s proximity to Pennsylvania, a shale gas fracking hot spot that sends some drill cuttings and waste water to nearby states, including New York, for processing and treatment. New York is also currently considering allowing fracking upstate.
Link:
http://green.blogs.nytimes.com/2012/06/25/new-jersey-senate-bans-treatment-of-fracking-waste/

Confusion regarding landowners' rights in Marcellus Shale
Saint Marys Daily Press
Colin Deppen
June 24
Bob Coppolo of Weedville said when he was recently approached by gas company representatives seeking access to his land, he balked at the idea of signing on the dotted line without first reading through the fine print.
Link:
http://www.smdailypress.com/content/confusion-regarding-landowners-rights-marcellus-shale

New concerns about gas drilling
Philly Burbs
Opinion
June 25
When critics of Act 13, the state’s gas drilling law, derided the legislation for, among other things, giving gas companies the right to void local zoning ordinances, state Sen. Chuck McIlhinney, R-10, told Bucks County communities not to worry. “It (the law) does not affect Bucks County’s townships, like Nockamixon,” McIlhinney assured, because Bucks does not lie above the Marcellus Shale, which lawmakers had in mind when they passed Act 13.
Link:
http://www.phillyburbs.com/news/local/the_intelligencer_news/opinion/new-concerns-about-gas-drilling/article_108f20ca-d01f-5875-bc83-67efff104012.html

Financiers: Marcellus more than a trickle
Times Online
Kirstin Kennedy
June 25
Active drilling in the Marcellus shale is going to solve the United States’ economic problems, and Janney Montgomery Scott knows why.
Link:
http://www.timesonline.com/news/local_news/financiers-marcellus-more-than-a-trickle/article_cfa2e234-cc5d-5623-a6b6-68457776c271.html

Amid shale drilling changes, law firms stay busy
Post-Gazette
Zack Needles
June 25
Financial woes plaguing the nation's second largest natural gas explorer, Chesapeake Energy Corp., have made for headline fodder recently, but some Pennsylvania energy attorneys said the Oklahoma company's problems are indicative of larger trends: the floundering price of "dry" gas and the ongoing shift of drilling operations from northeastern Pennsylvania to the southwestern portion of the state and to Ohio.
Link:
http://shale.sites.post-gazette.com/index.php/news/archives/24651-amid-shale-drilling-changes-law-firms-stay-busy

PA DEP Considers Controversial Gas Line Replacement Project Across Brandywine Creek
CBS Local Philadelphia
Pat Loeb
June 25
PHILADELPHIA — Pennsylvania’s Department of Environmental Protection is considering whether to let a Texas company dig in to the Brandywine Creek in order to replace a natural gas pipeline.
Link:
http://philadelphia.cbslocal.com/2012/06/25/pa-epa-considers-controversial-gasoline-replacement-project-across-brandywine-creek/

Josh Fox & Rolling Stone Magazine Target Cuomo In New Horror Video
John Hanger's Facts of The Day
Blog
June 21
He's the anti-fracking Babe Ruth, a self-made celebrity, excellent at his arts of propaganda and issue advocacy and quick.  Within a week of the leaking of the Cuomo plan that would allow hydraulic fracturing in 5 counties,  Josh Fox releases 18 minutes of horror and fear, targeting the Governor.
Link:
http://johnhanger.blogspot.com/2012/06/josh-fox-rolling-stone-magazine-targets.html

Untapped gold mine of natural gas sits below Bucks County
Philly Burbs
Amanda Cregan
June 22
New government data reveal that a potential gold mine for gas drillers — a pool of untapped natural gas — sits below most of Bucks County.
Link:
http://www.phillyburbs.com/my_town/palisades/untapped-gold-mine-of-natural-gas-sits-below-bucks-county/article_80280894-4286-5922-85bd-c46e270acb66.html

Methane migration probed in Tioga County
Post-Gazette
Laura Olson
June 22
HARRISBURG -- State environmental officials are investigating a potential case of methane migration in Tioga County near gas-drilling sites operated by a Shell Oil Co. subsidiary.
Link:
http://www.post-gazette.com/stories/local/marcellusshale/methane-migration-probed-in-tioga-county-641486/

Studying the Marcellus Shale: Researchers develop collaborative tool for water quality data
Centre Daily Times
Kelly Henry
June 24
Scientists with federal and state agencies, academic researchers, environmental consultants and watershed group volunteers have collected water quality data for years as part of efforts to monitor the health of Pennsylvania’s waterways.
Link:
http://www.centredaily.com/2012/06/24/3240040/marcellus-shale.html

State budget Shell game
Times-Tribune
Opinion
June 25
Gov. Tom Corbett and leaders of the Republican majorities in both houses announced Wednesday that they have reached a deal on a new state budget, as if they were adversaries.
Link:
http://thetimes-tribune.com/opinion/state-budget-shell-game-1.1334311

Local companies drill into natural gas industry
Times-Tribune
James Haggerty
June 25
Natural gas extraction is helping to enable a Scranton ammunition plant to aim for different business objectives.
Link:
http://thetimes-tribune.com/news/gas-drilling/local-companies-drill-into-natural-gas-industry-1.1334357

Climate Change Stunner: Shale Gas Makes USA World Leader In Cutting Carbon Emissions Since 2006
John Hanger's Facts of The Day
Blog
June 22
You will not find this fact in any of Josh Fox's videos about fracking and shale gas. Our Canadian friends call it a "climate change stunner."  The stunning fact for Canadians is that the USA leads the world in reducing carbon emissions since 2006.  This fact likely stuns most Americans too, as little has been said about it.
http://www.vancouverobserver.com/blogs/climatesnapshot/2012/06/04/climate-change-stunner-usa-leads-world-co2-cuts-2006.
Link:
http://www.johnhanger.blogspot.com/2012/06/climate-change-stunner-shale-gas-makes.html

No Shell game: Corbett's tax break plan is a good deal for state
Post-Gazette
Editorial
June 22
In a perfect world, Pennsylvania would not have to throw incentives at profitable businesses to lure them. Here in the real world, though, the Keystone State must compete against its neighbors to win jobs and tax revenue.
Link:
http://www.post-gazette.com/stories/opinion/editorials/no-shell-game-corbetts-tax-break-plan-is-a-good-deal-for-state-641452/

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