Utica Shale

Fri, 2014-04-25 05:00Anne Landman
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Ohio Geologists Link Earthquakes to Fracking, State Introduces Seismic Monitoring

The Ohio Department of Natural Resources announced earlier this month that it will start requiring oil and gas companies to install networks of sensitive seismic monitors on their wells to detect small earthquakes that could be caused by hydraulic fracturing, or “fracking.” 

The special requirement will kick in if companies request permits to drill horizontal wells within three miles of known fault lines, or where earthquakes greater than a 2.0 magnitude have already been recorded. If the monitors detect any tremors in excess of 1.0 magnitude, drilling must cease while experts investigate the cause of the seismic activity. 

The new rules are the department's response to recent earthquakes in Ohio's Poland Township in Mahoning County — which Rick Simmers, chief of the Ohio Department of Natural Resource's oil and gas division, says have a “probable connection” to hydraulic fracturing activity in the area.

The March earthquakes mark the first time state geologists in Ohio have definitively linked earthquakes to gas drilling. They believe that fracking for gas in the Utica Shale beneath the Appalachian mountains caused five earthquakes in the area by increasing pressure on a previously unknown fault. 

Ohio has also imposed an indefinite moratorium on new drilling in the area of the earthquakes, but will allow extraction to continue at five other existing wells at the site.

Mon, 2014-04-07 12:25Steve Horn
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ANR Pipeline: Introducing TransCanada's Keystone XL for Fracking

When most environmentalists and folks who follow pipeline markets think of TransCanada, they think of the proposed northern half of its Keystone XL tar sands pipeline. 

Flying beneath the public radar, though, is another TransCanada-proposed pipeline with a similar function as Keystone XL. But rather than for carrying tar sands bitumen to the Gulf Coast, this pipeline would bring to market shale gas obtained via hydraulic fracturing (“fracking”).

Meet TransCanada's ANR Pipeline System.

Although not actually a new pipeline system, TransCanada wants ANR retooled to serve domestic and export markets for gas fracked from the Marcellus Shale basin and the Utica Shale basin via its Southeast Main Line. 

“The [current Southeast Main Line] moves gas from south Louisiana (including offshore) to Michigan where it has a strong market presence,” explains a March 27 article appearing in industry publication RBN Energy


Map Credit: RBN Energy

Fri, 2013-12-13 07:00Steve Horn
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Former Chesapeake Energy CEO Aubrey McClendon Buys Fracking Wells In Ohio's Utica Shale

Former Chesapeake Energy CEO and Founder Aubrey McClendon is back in the hydraulic fracturing (“fracking”) game in Ohio's Utica Shale in a big way, receiving a permit to frack five wells from the Ohio Department of Natural Resources on November 26. 

“The Ohio Department of Natural Resources awarded McClendon's new company, American Energy Utica LLC, five horizontal well permits Nov. 26 that allows oil and gas exploration on the Jones property in Nottingham Township, Harrison County,” a December 6 article appearing in The Business Journal explained. “In October, American Energy Utica announced it has raised $1.7 billion in capital to secure new leases in the Utica shale play.”

McClendon is the former CEO of fracking giant Chesapeake Energy and now the owner of American Energy Partners, whose office is located less than a mile away from Chesapeake's corporate headquarters.

The $1.7 billion McClendon has received in capital investments for the purchase of 110,000 acres worth of Utica Shale land came from the Energy & Minerals GroupFirst Reserve Corporation, BlackRock Inc. and Magnetar Capital.

McClendon — a central figure in Gregory Zuckerman's recent book “The Frackers” — is currently under investigation by the U.S. Securities and Exchange CommissionHe left Chesapeake in January 2013 following a shareholder revolt over his controversial business practices.

In departing, he was given a $35 million severance package, access to the company's private jets through 2016 and a 2.5% stake in every well Chesapeake fracks through June 2014 as part of the Founder's Well Participation Program.

Little discussed beyond the business press, McClendon has teamed up with a prominent business partner for his new start-up: former ExxonMobil CEO Lee Raymond.

Wed, 2013-08-21 05:00Steve Horn
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Exclusive: Ousted Chesapeake Energy CEO Aubrey McClendon Launching Ohio Land Grab

Aubrey McClendon's penchant for “land grab” as a business model made the recently-ousted Chesapeake Energy CEO infamous - and he's at it again for his new start-up hydraulic fracturing (“fracking”) company in Ohio's Utica Shale basin. It's a formation he once hailed as the “biggest thing to hit Ohio since the plow.”

Under Securities and Exchange Commission investigation for sketchy business practices, McClendon departed Chesapeake with a severance package including $35 million, access to the company's private jets through 2016 and a 2.5% *return on ownership stake in* every well Chesapeake fracks through June 2014.

Since then, he launched three new start-ups: McClendon Energy PartnersAmerican Energy Partners and Arcadia Capital LLC.

American Energy Partners' headquarters are just half a mile down the road from Chesapeake's, the number two U.S. producer of shale gas behind ExxonMobil. Some of those in McClendon's Chesapeake inner circle have left Chesapeake and joined him (or reportedly intend to join him) at his new ventures.**

Though former Chesapeake employees are barred from working for McClendon, this excludes “any employee assigned to Mr. McClendon as an assistant,” “any employee who has been terminated by the Company,” “any employee who elects (or has elected) to accept any voluntary severance or retirement program offered by the Company,” or “any employee for whom the Company consents in advance to the soliciting and hiring by Mr. McClendon.” 

In other words, the scandal-ridden AKM Operations has shape-shifted into McClendon Energy Partners, American Energy Partners and Arcadia Capital LLC.

McClendon's playing the same business plan game using a different company name, with Ohio serving as the first pit stop. Although his business plans were held close to the chest since his Chesapeake departure, recent stories indicate that McClendon's Ohio “land grab” has now begun in earnest.

Tue, 2013-06-11 10:13Steve Horn
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Frackademia: University of Tennessee Set to Lease Forest For Fracking, Enriching Governor's Family

8,600 acres of the Cumberland Forest owned by University of Tennessee-Knoxville will be leased off to the oil and gas industry this August in a new form of “frackademia” - and one of the top financial beneficiaries will be the family of Republican Gov. Bill Haslam, who sits on UT-Knoxville's Board of Trustees

“Frackademia” is usually thought of as “studies” conducted by university-based “frackademic” researchers and funded by Big Oil, the old “Tobacco Playbook” in action. But UT-Knoxville has taken the game to a whole new level, leasing off land it owns so that it can study “best practices” for fracking in the Volunteer State.

“It would create a rare, controlled environment in which experts could study the environmental impact of the controversial drilling technique, while also generating revenue to finance research,” explained a New York Times article on the proposal

The deal with the oil and gas industry for the acerage includes an initial fee of $300,000, plus $300,000 per year, 15-percent royalties on any gas sold and a minimum of $35 per acre paid to UT-Knoxville

The 8,600 acres sits within the Chattanooga Shale basin, a field still untapped by the industry via hydraulic fracturing (“fracking”), the toxic horizontal drilling process through which oil and gas is obtained from shale rock basins. Atlas Energy - purchased as a subsidiary by Chevron in Nov. 2010 - owns 105,000 acres in the Chattanooga, a clear example the industry has its cross-hairs on the untapped Chattanooga basin. 

UT-Knoxville's new “leasing agency” program will be run under the auspices of the university's Institute of Agriculture, officially referred to as the UT Institute of Agriculture Gas and Oil Research Initiative and a pre-bid proposal conference for prospective industry partners is set for June 21. Leases will be five years long, with a maximum allowance of three renewals, or 20 years total. 

Tue, 2012-11-06 12:40Steve Horn
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Chesapeake Energy Tied to Mansfield, OH Bill of Rights Astroturf Attack

The oil and gas industry is waging an 11th hour astroturf campaign in Mansfield, OH in an attempt to defeat the “Community Bill of Rights“ referendum. 

A “yes” vote would, in effect, prohibit hydraulic fracturing (“fracking”) injection wells in Mansfield, a city of 48,000 located in the heart of the Utica Shale basin between Cleveland and Columbus. 

In March 2012, the Ohio Department of Natural Resources (ODNR) conducted a study linking the 12 earthquakes that have occurred in Youngstown, OH to injection wells located in the city. Further, recent investigative reports by ProPublica show that these new dumping grounds - with a staggering 150,000 injection wells in 33 states and 10 trillion gallons of toxic fluid underground - are a public health hazard in the making.

And yet, for the most part, hardly anyone is talking about it.

Preferred Fluids Management LLC is the upstart business that received two well injection permits from the ODNR in the spring of 2011 that motivated the “Bill of Rights” initiative. Industry front groups ranging from Energy in Depth (EID), Energy CitizensOhio Energy Resource Alliance and “Mansfielders for Jobs” are leading the charge in the astroturf campaign to defeat it.

Why, though, has the fracking industry put so much time and effort into the placement of a measly two injection wells in Mansfield for this relatively unheard of LLCMichael Chadsey of EID Ohio explained the importance of the waste dumping grounds at a forum on Jan. 30, 2012, stating,

If for some reason they just said, you know, we're going to stop this process, eventually the tanks that are on-site are going to get filled up. And then all the drilling pads are going to have to shut down and all of the truck drivers will have to stop.

So…this is the part of the process that is the end part of the process. When you shut down the end, you can't even start or continue because you have to have all the pieces of the puzzle to make this thing move. Everything is interconnected.

There's that and then there's the fact that Preferred Fluids Management LLC isn't merely a “new kid on the block.” Owned and founded by Steven Mobley, the business has a story of its own worthy of sharing, as it's closely connected to gas industry powerhouse, Chesapeake Energy.

Thu, 2012-09-27 13:58Steve Horn
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Regulatory Non-Enforcement by Design: Earthworks Shows How the Game is Played

Earthworks Oil and Gas Accountability Project published a scathing 124-page report this week, “Breaking All the Rules: the Crisis in Oil & Gas Regulatory Enforcement.”

The content of the report is exactly as it sounds.

That is, state-level regulatory agencies and officials often aren't doing the jobs taxpayers currently pay them to do and aren't enforcing regulations on active oil and gas wells even when required to under the law.

This is both out of neglect and also because they're vastly understaffed and underfunded, meaning they literally don't have the time and/or resources to do proper inspections.

And on those rare instances when regulatory agencies and the regulators that work for them do enforce regulations on active oil and gas wells, Earthworks demonstrated that the penalties for breaking the rules are currently so weak that it's merely been deemed a tiny “cost of doing business” by the oil and gas industry.

Fri, 2012-07-27 03:30Steve Horn
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Exposed: Pennsylvania Act 13 Overturned by Commonwealth Court, Originally an ALEC Model Bill

On July 26, the Pennsylvania Commonwealth Court** ruled PA Act 13 unconstitutional.*** The bill would have stripped away local zoning laws, eliminated the legal concept of a Home Rule Charter, limited private property rights, and in the process, completely disempowered town, city, municipal and county governments, particularly when it comes to shale gas development.

The Court ruled that Act 13 “…violates substantive due process because it does not protect the interests of neighboring property owners from harm, alters the character of neighborhoods and makes irrational classifications – irrational because it requires municipalities to allow all zones, drilling operations and impoundments, gas compressor stations, storage and use of explosives in all zoning districts, and applies industrial criteria to restrictions on height of structures, screening and fencing, lighting and noise.”

Act 13 – pejoratively referred to as “the Nation's Worst Corporate Giveaway“ by AlterNet reporter Steven Rosenfeld – would have ended local democracy as we know it in Pennsylvania.

“It’s absolutely crushing of local self-government,” Ben Price, project director for the Community Environmental Legal Defense Fund (CELDF), told Rosenfeld. “It’s a complete capitulation of the rights of the people and their right to self-government. They are handing it over to the industry to let them govern us. It is the corporate state. That is how we look at it.”

Where could the idea for such a bill come from in the first place? Rosenfeld pointed to the oil and gas industry in his piece.

That's half of the answer. Pennsylvania is the epicenter of the ongoing fracking boom in the United States, and by and large, is a state seemingly bought off by the oil and gas industry.

The other half of the question left unanswered, though, is who do oil and gas industry lobbyists feed anti-democratic, state-level legislation to?

The answer, in a word: ALEC.

Thu, 2012-01-19 21:24Steve Horn
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72 Percent of Ohioans Want A Fracking Moratorium, Citing Need For More Study

The unconventional gas industry's latest rush in the United States will land it in the state of Ohio, but a recent poll shows that the state's residents are not rolling out the red carpet for an industry famous for threatening drinking water supplies, causing earthquakes, noise and air pollution and trying to proliferate global addiction to fossil fuels.

Results from a Quinnipiac University poll released today shows that 59 percent of those polled have heard of or read about hydraulic fracturing, or “fracking,” the complex and risky process that enables unconventional gas drilling. A whopping 72 percent of Ohioans familiar with fracking support a moratorium on the process until it is studied further.

The other 41-percent of citizens are likely to follow suit once they discover what is headed their way, and how little this industry will help them from a financial point of view in the long run.

Ohio recently found itself with the fracking shakes, as magnitude 4.0-level earthquakes struck near Youngstown on New Year's Eve. Scientists suspect the earthquakes resulted from a wastewater injection well disposing of fracking brine from Pennsylvania. The Christian Science Monitor explained in a story that the “quake triggered shaking reportedly felt as as far away as Buffalo, N.Y., and Toronto.” 

These fracking-related earthquakes are not an aberation, but rather a repeated occurence linked to fracking in Texas, Oklahoma, and Arkansas, as well as abroad in the U.K., in the city BlackpoolAl Jazeera English recently ran a story on the Ohio fracking-induced earthquakes. Watch:

Wed, 2011-09-21 21:55Steve Horn
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Natural Gas Gold Rush, Utica Shale Edition Courtesy of John Kasich

Yesterday, the Ohio Governor's 21st Century and Economic Summit began, hosted by the controversial union-busting Governor John Kasich (R-OH), coming on the heels of an oil and natural gas funded study claiming that claimed, as the Cleveland Plain Dealer put it, “Ohio's natural gas and oil reserves are a multibillion-dollar bonanza that could create more than 204,500 jobs.”

The “study” was written by the Ohio Oil and Gas Energy Education Program (OOGEEP), which, according to its website, “is funded exclusively by Ohio's crude oil and natural gas producers and royalty owners.”

Quite the objective source, indeed. The summit, which concludes today, is hosted by Battelle Memorial Institute, located in Columbus, Ohio. The Plain Dealer explains that the summit is “designed to open discussions about Ohio's use of coal, natural gas and renewable energy technologies such as solar and wind as well as state-mandated energy efficiency rules.”

Titled “Ohio’s Natural Gas and Crude Oil Exploration and Production Industry and the Emerging Utica Gas Formation Economic Impact Study,” the timing of its release seems suspect, to say the least, based on this premise.

Kasich has already stated on multiple occasions that when it comes to drilling for gas, his motto is “drill baby, drill.”

In a recent interview with ClimateWire, Kasich offered his take on the inherent ecological harms associated with natural gas drilling from cradle – when the sand is mined for fracking, to grave – when the gas is actually burned, saying, “There's no problem with fracking. I dismiss that.”

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