Official calls well leak ‘very, very worrying’

January 29, 2011

Official calls well leak ‘very, very worrying’.

Official calls well leak ‘very, very worrying’

By Kevin Dougherty, Montreal Gazette January 28, 2011
Workers drill for natural gas in Hickory, Pa. The industry claims shale gas extraction is safe, but problems at wells in Quebec are worrying officials.

Workers drill for natural gas in Hickory, Pa. The industry claims shale gas extraction is safe, but problems at wells in Quebec are worrying officials.

Photograph by: Jeff Swensen, NYT

QUEBEC – An Environment Department official calls an uncontrolled gas leak at a shale gas well near St. Hyacinthe “very, very worrying,” and fears the leak “could lead to contamination of underground water.”

The well, operated by Calgary-based Canbriam Energy Quebec Partnership, is giving off methane gas that could threaten “the life, health, safety, well-being or comfort of human beings,” the Environment Department says in a notice sent the company.

“We ask you to proceed immediately with the necessary corrections to stop these emissions,” the notice adds. “As well, safety measures at the site should be established to ensure the protection of persons and property.”

Filed under Official Actions--Legislation, judgments,regulation, Spills-Accidents-Suits Tagged with , , , , , ,

Joshua Kors: Oscar Nominee Josh Fox Speaks Out About Oil Lobby’s Efforts to Crush His Film

January 29, 2011

Joshua Kors: Oscar Nominee Josh Fox Speaks Out About Oil Lobby’s Efforts to Crush His Film.

 

Joshua Kors

Joshua Kors

Investigative Reporter, The Nation

Posted: January 27, 2011 02:03 PM

 

Josh Fox’s home sits in the woods of Milanville, Pennsylvania, near the rushing waters of the Delaware River. In May 2008, a strange letter appeared in his mailbox. A natural gas company was offering him $100,000 if he granted them permission to drill on his property.

Instead of signing, Fox decided to investigate. Armed with a video camera and a banjo, he set off on a journey up and down the Marcellus Shale, a massive reserve of natural gas that stretches 600 miles from Pennsylvania to Maryland, Virginia and into Tennessee. Known as the “Saudi Arabia of natural gas,” the shale contains billions of dollars in untapped fuel.

Fox wanted to know: What happened to other families who agreed to drilling on their property?

What he found was a heartbreaking collection of severely ill families whose aquifers had become so tainted by the gas, they could literally light their tap water on fire. He edited his footage into a modest documentary, Gasland, which was soon embraced by outraged viewers across the country. It won the Special Jury Prize at the Sundance Film Festival, the Lennon-Ono Peace Prize, and now has been nominated for an Academy Award for Best Documentary.

Filed under Industry claims, Video, Water Tagged with , , , ,

Cheniere Energy, In Reversal, Wants to Export Natural Gas – NYTimes.com

January 28, 2011

Cheniere Energy, In Reversal, Wants to Export Natural Gas – NYTimes.com. Jan. 28, 2011

The central assumption behind the export strategy is simple: American gas prices are destined to be cheaper than European and Asian prices for years to come. At today’s prices, companies would be able to buy American gas at $4.35 per million British thermal units, and then sell the same gas in Europe or Asia for roughly double that price, since long-term contracts globally are still largely tied to high benchmark oil prices.

Related stories from Bendon O’Connor

“Cheniere Marketing, LLC; Application for Blanket Authorization To Export Liquefied Natural Gas” (Federal Register)- http://www.federalregister.gov/articles/2010/04/16/2010-8753/cheniere-marketing-llc-application-for-blanket-authorization-to-export-liquefied-natural-gas
“Sabine Pass Liquefaction, LLC; Application for Long-Term Authorization To Export Liquefied Natural Gas” (Federal Register)- http://www.federalregister.gov/articles/2010/10/12/2010-25546/sabine-pass-liquefaction-llc-application-for-long-term-authorization-to-export-liquefied-natural-gas
“Sempra LNG Marketing, LLC; Application for Blanket Authorization To Export Liquefied Natural Gas” (Federal Register)- http://www.federalregister.gov/articles/2010/09/29/2010-24389/sempra-lng-marketing-llc-application-for-blanket-authorization-to-export-liquefied-natural-gas
“Encana says eyes supplying U.S. natgas for export: “…Encana Corp (ECA.TO), Canada’s biggest natural gas producer, said it is interested in marketing gas produced in the United States for shipment overseas as domestic production increases…Cheniere’s project, which could export up to 16 million tonnes per year of LNG, is one of three proposed LNG export plans in North America as increased production from shale gas and tepid demand push U.S. inventories to record highs. The Federal Energy Regulatory Commission (FERC) is currently considering Cheniere’s project.” (Reuters)- http://www.reuters.com/article/idUSN1428019620101214 (See also- http://www.google.com/search?q=Cheniere+site:federalregister.gov&num=100&hl=en&safe=off&tbo=1&biw=1216&bih=608&output=search&source=lnt&tbs=qdr:y&sa=X )
“Chesapeake Energy wants to export LNG: “…Mike Stice, senior vice president for natural gas projects at Oklahoma City-based Chesapeake Energy, would like to create new markets for the natural gas that is inundating the US, due in part to dramatically increased production in shale gas plays…Liquefying and exporting shale gas from shale plays like the Haynesville, Barnett, and Eagle Ford to global markets holds major promise as the US confronts an oversupply of cheap supplies, said analyst Rick Smead of Navigant Consulting…” ” ( Oil & Gas Financial Journal via PennEnergy)- http://www.pennenergy.com/index/petroleum/display/6421909998/articles/oil-gas-financial-journal/unconventional/chesapeake-energy.html
“Chinese stake out Chesapeake: “…”The deal reflects the ambition of Chinese companies to enter the global oil and gas industry, especially when China’s gas demand is expected to rise sharply,” said Grace Liu, an energy analyst with Guotai Junan Securities in Shenzhen, China…” ” (Bloomberg News via American Chronicle)- http://www.americanchronicle.com/articles/yb/151039348
“Chesapeake CEO outlines “holy grail” for natural gas: “…. He said the U.S. by then could have in place an infrastructure for conversion of natural gas to liquid form, potentially for use as a motor fuel, and for export to foreign countries as liquefied natural gas (LNG)…Widespread use of gas as a motor fuel would boost demand and encourage higher prices for producers of the power plant, heating and industrial fuel…” ” (Texas)- http://blogs.star-telegram.com/barnett_shale/2010/11/chesapeake-ceo-outlines-holy-grail-for-natural-gas.html & http://www.star-telegram.com/2010/11/03/2602454/chesapeake-ceos-quest-cars-running.html
“Firm Would Export U.S. Natural Gas to China: “…But is it about to become a major exporter of one type of domestic fuel? A Houston-based company took a small, tentative step in that direction on Thursday, by saying it was working on a deal to supply liquefied natural gas from Louisiana to one of China’s largest independently owned natural gas companies…” ” (The Wall Street Journal)- http://www.gohaynesvilleshale.com/forum/topics/firm-would-export-us-natural & http://online.wsj.com/article/SB10001424052748704756804575608864254564960.html
“Macquarie Energy and Freeport LNG Expansion, L.P. to Jointly Develop U.S. LNG Export Project: “…The proposed liquefaction facility will be capable of liquefying up to 1.4 billion cubic feet per day (Bcf/d) of natural gas and will create a world-class bi-directional import/export LNG terminal…Worldwide growth in both LNG demand and supply is forecasted to continue, with the rate of demand outpacing supply. The majority of the demand growth is expected to be driven by Asia…Freeport LNG expects to file for an export license with the Department of Energy in December and shortly thereafter start the approval process with the Federal Energy Regulatory Commission (FERC)…” ” (Press Release) (Macquarie)- http://www.macquarie.com/us/about_macquarie/media_centre/20101122.html
“Booming U.S. Gas Industry Becoming an American Energy Exporter: “…At this time of Thanksgiving we can be grateful that a tectonic shift in America’s dependence on imported energy is beginning to take hold. In the last weeks a number of major events have taken place that are beginning to shift the balance of energy in significant ways. Last month the Chinese government owned energy company CNOC (you will recall CNOC’s failed bid to take over Unocal in 2005) committed over a billion dollars to take an important stake in the Eagle Ford, shale gas acreage in Texas. In doing so they joined the Norwegian state oil company, Statoil, that had made an earlier investment in the Eagle Ford field as well. Major oil companies such as Exxon, Shell, Chevron and myriad other foreign entities have joined American gas producers such as Chesapeake Energy to invest tens of billions of dollars these past years to develop a stake in what is becoming a treasure trove of natural gas ranging from Texas and Louisiana to the vast Marcellus field of Western Pennsylvania, Ohio, West Virginia and upstate New York…Of particular significance this Monday, Macquarie Energy and Freeport LNG announced plans to jointly develop a $2 billion project to liquefy, market and export 1.4 BCF gas/day. Mr. Nicholas O’Kane, Sr. Managing Director of Macquarie Group (an Australian company) was pointedly quoted, “Recent developments in shale gas technology have transformed the U.S. gas market. The U.S. has developed significant natural gas resources and is able to meet projected domestic demand and a surplus for a long time to come.” …” ” (The Huffington Post)- http://www.huffingtonpost.com/raymond-j-learsy/the-uss-booming-gas-indus_b_787949.html (Raymond J. Learsy- http://www.huffingtonpost.com/raymond-j-learsy# & http://www.wilsoncenter.org/index.cfm?fuseaction=about.profile&person_id=12857 )
“Shale gas popularity rising but experts remain divided: “…Recent energy discoveries are of huge importance because the U.S. used to be an importer and has now become a major exporter, Felix Lutz, a senior energy adviser at the European Parliament, recently told the Daily News…” ” (Hurriyet Daily News and Economic Review)- http://www.hurriyetdailynews.com/n.php?n=specialists-question-european-shale-market-2010-11-28
“China and India see what the US doesn’t – the potential of natural gas: “…And that brings me to the next development. Cheniere Energy has signed an agreement with ENN Energy Trading of China, under which ENN will contract 1.5m tonnes per annum of bi-directional Liquified Natural Gas (LNG) processing capacity at Cheniere’s Sabine Pass LNG terminal in the US. This makes the possiblity of the US exporting its gas to the rest of the world that much more likely to happen. As gas is liquified for ease of use during transport…Europeans and Asians have been eagerly snapping up acreage for several years now. Indeed, Cnooc, the Chinese energy company, in October agreed to pay up to $2.16bn to buy a 33.3 per cent interest in Chesapeake’s Eagle Ford shale play in the largest Chinese investment in the US energy sector…” ” (Financial Times)- http://blogs.ft.com/energy-source/2010/11/11/china-india-see-natural-gas-potential-us-government-is-missing/
“China Buys U.S. Assets with its Surplus Dollars: “…CONOOC, China’s national oil company, recently announced an agreement with Chesapeake Energy Corporation that would give the Chinese a 33 percent share in a new drilling project set to start soon in southwest Texas. The deal reportedly will cost CONOOC more than $2 billion and is just one of a string of purchases by the Chinese who recently have gone on an international buying spree. Long known for accumulating a surplus of U.S. dollars as it grew its manufacturing base by exporting products to the American market, our manufacturing trade deficit with China more than tripled from 2000 to 2008, as it went from $83.8 billion to $268 billion. Now, China is using that excess of dollars to purchase hard assets such as oil and gas properties in Texas…” ” (Texas)- http://www.dallasblog.com/201011081007320/tom-pauken/china-buys-u.s.-assets-with-its-surplus-dollars.html
“U.S. sends first gas to NW Europe in 50 years: “…The United States is set to supply gas to Britain for the first time in half a century, with a liquefied natural gas (LNG) tanker expected to arrive from Louisiana in late November…The U.S. started re-exporting LNG to higher-paying markets in Asia and South America earlier this year, but the Maersk Meridian LNG tanker, expected to arrive on November 18 at Britain’s Isle of Grain terminal, is the first to head to Europe — Russia’s main export market…Nearly 20 billion cubic feet of gas has been re-exported from the United States this year, excluding the gas aboard the UK-bound vessel. In mid-October, two cargoes were shipped from the U.S. Gulf by Excelerate Energy, one of which is heading to Kuwait, the other to Argentina…” ” (Reuters) (UK)- http://uk.reuters.com/article/idUKTRE6A734Y20101108
“Commentary: U.S. Exports of Coal & Natural Gas: “…Of course, increasing exports also reduces the trade deficit. And thanks to twin dynamics in American attitudes toward energy use and in the rapidly growing global demand for electricity, the U.S. has surprisingly become a significant energy exporter…There’s another area for potential growth — natural gas. Just a few years ago, companies were building terminals along the coast to facilitate the importation of clean- burning liquefied natural gas or LNG. But thanks to huge new discoveries and new drilling techniques, the U.S. now has abundant supplies of its own. In September, the Department of Energy approved the application of one of those import terminals in Sabine Pass, Texas, to convert to an export facility…” ” (Video, PBS Nightly Business Report)- http://www.pbs.org/nbr/site/onair/transcripts/energy_independence_and_elections_101102/
“Shale Gas: Not An Overnight Success: “…”A lot of investment has been made in the US market but there has been a change in plan — like plans to receive LNG, which it now wants to export.”…”Acceptance by local communities is important, especially in Europe, a highly populated area,” said Ito, who mentioned that trucks coming in and out, and the noise they created were a very difficult issue…” ” (Natural Gas for Europe)- http://naturalgasforeurope.com/shale-gas-not-an-overnight-success.htm
“LNG re-exports signal US shale gas impact: “…The US is normally regarded as a hungry energy consumer, but has recently assumed a new role — that of exporter of liquefied natural gas…” ” (Lloyd’s List)- http://www.lloydslist.com/ll/sector/tankers/article351391.ece
“LNG Industry To 2016 – Increasing Gas Supply Challenges Future Growth Prospects: “…This oil and gas report provides forecasts for the liquefaction and regasification sectors of the LNG industry, of planned liquefaction and regasification terminals and of planned major global LNG projects to 2016. The report also provides segmental forecasts of the global LNG market in different regions worldwide and highlights the major countries in the region…” ” (GBI Research)- http://www.companiesandmarkets.com/Summary-Market-Report/lng-industry-to-2016-increasing-gas-supply-challenges-future-growth-prospects-322094.asp
“The (Shale) Gas Renaissance: “…By 2014, Canada will be a major producer and exporter of shale gas. Within just a few years, the U.S. could (and if it has its energy act together, it should) join Canada as a key natural gas exporter…” ” (Energy Tribune)- http://www.energytribune.com/articles.cfm/6174/The-Shale-Gas-Renaissance
“What if the U.S. Became a Net Exporter of Liquefied Natural Gas?: “…So what is the solution? Simple, increase exports of natural gas…Cheniere Partners (CQP) received permission from the US Department of Energy to export LNG produced in North America from its Sabine Pass terminal. The company had already received permission to re-export imported LNG. Cheniere Partners announced a memorandum of understanding was signed with a Chinese company, ENN Energy Trading Co., to provide the company with 1.5 million metric tons annually of LNG produced at Sabine Pass. Additionally, Cheniere Partners signed a memorandum of agreement with Morgan Stanley Capital Group Inc. The agreement would allow Morgan Stanley to import or export up to 1.7 million metric tons annually from Sabine Pass. Currently, there is one other North American LNG export facility. The US has 10 LNG import terminals where the owners are petitioning the US government for export licenses to join the race to export LNG. We could see the ramp up of export facilities in the near future. This bodes well for the natural gas industry and companies like Chesapeake Energy, Corp. This may be one of the reasons why Carl Icahn recently has taken a 5.8% stake in the company…” ” (Seeking Alpha)- http://seekingalpha.com/article/242898-what-if-the-u-s-became-a-net-exporter-of-liquefied-natural-gas
“Shell: We’ll produce more gas than oil by 2012: “…What about exporting liquefied natural gas? When it comes to the skills and the technology around liquefied natural gas, we’re well-placed if not the best placed company in terms of bringing the solution to that equation. As this market continues to develop, if the right thing is for this resource to leave the continent, we’re in a good place to do that…” ” (Fortune via CNN Money)- http://money.cnn.com/2010/12/15/news/companies/shell-oil-gas-odum.fortune/index.htm?section=money_latest
“North America: The new energy kingdom: “…Mr. Forbes was explaining why CNOOC, China’s principal state-owned oil company, was paying Chesapeake Energy $1.08-billion (U.S.) in cash for a one-third interest in the company’s next shale gas play in Texas — and paying 75 per cent of the cost of developing it. Yes, China was investing in drilling technology: China itself has abundant shale gas reserves. But China had another objective. “Within a decade,” Mr. Forbes said, “the U.S. will be a major natural gas exporter.” And China will be a major importer…” ” (The Globe and Mail) (Canada)- http://www.theglobeandmail.com/report-on-business/commentary/neil-reynolds/north-america-the-new-energy-kingdom/article1828896/ & http://www.firstenercastfinancial.com/e_commentary.php?cont=100170
“Cheniere Plans to Export U.S. Gas Into Caribbean Power Markets, CEO Says: “…Cheniere owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana. The company said in June that the plant might become the first in the continental U.S. to export LNG, citing increased domestic production from unconventional gas and lagging demand. JPMorgan Chase & Co., which is boosting its LNG trading in North America, said in August the country may see more “development plans” for liquefaction facilities if low prices boost export demand…” ” (Bloomberg)- http://www.bloomberg.com/news/2010-12-08/cheniere-plans-to-export-u-s-gas-into-caribbean-power-markets-ceo-says.html
“Another publication discovers U.S. on verge of energy independence without green fuels: “…Toronto’s Globe & Mail quotes a UN report that includes this observation: “Within a decade or so, North America will almost certainly emerge as the world’s biggest supplier — and exporter — of reasonably cheap energy.”…” “(San Francisco Examiner)- http://www.sfexaminer.com/blogs/beltway-confidential/2010/12/another-publication-discovers-us-verge-energy-independence-withou
“With natural gas glut, firms bank on exporting: “…The terminal requires approval from the Energy Department and the Federal Energy Regulatory Commission…Demand and prices for liquefied natural gas overseas have remained much higher than in North America, however, leading some U.S. producers to mention exporting it. For example, Chesapeake Energy CEO Aubrey McClendon has suggested exports to boost demand for U.S. natural gas…Freeport plans to seek 20-year contracts for gas exported from the terminal, Smith said. Long-term contracts are needed for financing for the project, he said. Also Monday, Exxon Mobil Corp. said it put on hold plans for a floating liquefied natural gas import terminal off New Jersey, citing changes in its outlook for fuel supply and demand in the region…” ” (Texas)- http://www.star-telegram.com/2010/11/22/2652178/with-natural-gas-glut-firms-bank.html
“Freeport/Macquarie to Build LNG Export Terminal in Texas: “…Macquarie Energy, the North American energy marketing and trading arm of Macquarie Group (Macquarie), and Freeport LNG Expansion, L.P. (Freeport LNG) today announced an agreement to jointly develop and market liquefaction capacity at Freeport LNG’s existing LNG import terminal near Freeport, Texas. The proposed liquefaction facility will be capable of liquefying up to 1.4 billion cubic feet per day (Bcf/d) of natural gas and will create a world-class bi-directional import/export LNG terminal…” ” (LNG World News)- http://www.lngworldnews.com/usa-freeport-macquarie-to-build-lng-export-terminal-in-texas/
“Macquarie, Freeport to build Texas LNG export terminal: “…Liquefied natural gas terminal developer Freeport LNG and Macquarie Bank have agreed to build an export plant in Texas to send US-produced gas overseas, a spokeswoman for Macquarie told Reuters…” ” (Reuters)- http://www.reuters.com/article/idUSL3E6MM00B20101122
“Macquarie in gas tie-up with Freeport LNG: “…The proposal follows a similar move by Cheniere Energy for a combined import and export terminal at Sabine Pass, Louisiana…Projects, such as Freeport and Sabine, could have repercussions for global LNGmarkets. The shale boom has made the country the world’s biggestnatural gas producer, with 57bn cu ft a day of output, according toNikos Tsafos of PFC Energy, the consultancy. If the US exported just a10th of its gas last year, he says, it would have been the world’s topLNG exporter…” “(Stockhouse)- http://www.stockhouse.com/Blogs/ViewDetailedPost.aspx?p=110227
“Project aims to liquefy U.S. natural gas: “…”Asia seems a likely market for U.S. LNG, given current market dynamics and the fact that the Panama Canal is opening soon to LNG tankers, said Nicholas O’Kane, global head of Macquarie Group’s energy markets division in Houston. “But we’ll be marketing in Europe in the next few weeks as well,” O’Kane said. If Freeport and Macquarie are able to sign up customers committed to buying the LNG for up to 20 years, they will use those com- mitments to fund the project through U.S. debt markets…” ” (Texas)- http://www.chron.com/disp/story.mpl/business/energy/7307449.html
“Glut prompts project to chill natural gas for export: “…Freeport LNG is partnering with Australian bank Macquarie to build the capacity to turn U.S. natural gas into a liquid for shipment overseas.The Freeport terminal, which opened on the Texas coast in 2008 to import liquefied natural gas from other countries, has already added the capacity to ship some of that LNG back overseas because of overproduction of the fuel in the U.S…Earlier this month, Cheniere said it also plans to build gas liquefaction capacity to export LNG from its facility in Sabine Pass…” ” (Fuel Fix)- http://fuelfix.com/chronicleenergynews/2010/11/23/glut-prompts-project-to-chill-natural-gas-for-export/
“Bulls rushing into Cheniere Energy: “…Recent trading action suggests a similar trend could now be taking hold in LNG. The stock exploded higher on Nov. 11 after saying it was working on a deal to export natural gas to China…If anything close to that pans out, the United States could become a major exporter of natural gas to places like Western Europe…” ” (Nasdaq)- http://community.nasdaq.com/News/2010-12/bulls-are-rushing-into-cheniere-energy.aspx?storyid=51148
“US to Gain Competitive Edge in Global LNG Market: “…However, current developments indicate that the US is likely to reach the stage of self-sufficiency in coming future. Moreover, the country may achieve a competitive place in the global LNG export market…” ” (SBWire)- http://www.sbwire.com/press-releases/sbwire-71565.htm
“The Outlook For LNG: “…The US was never much into exporting LNG because it has plenty of domestic demand for gas. But with the rapid development of the burgeoning US shale gas industry, the US is now looking to becoming an LNG export player. Will it stick to its own side of the fence? Well that remains to be seen…” ” (Australia)- http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=0CA6A32B-A383-895B-50BD1AD5D9797FB8
“Shale industry delivers message to chambers of commerce: “…The rocks below Western Pennsylvania have enough natural gas in them to fuel the entire Eastern Seaboard for 50 years or more, and with our country’s current dependence on foreign oil, the ability to supply and export our own fuel would benefit the nation. That was the message delivered by representatives of the burgeoning Marcellus Shale extraction industry to guests of an economic forecast breakfast sponsored by The CHAMBER Inc., what used to be the Cranberry and North Hills Area chambers of commerce. The session, touted as the first in a series, was held at Treesdale Country Club last month. In addition to industry representatives, a sizable group of business owners also heard from Bruce Betty, McCandless land use administrator…” ” (Pittsburgh Post-Gazette) (PA)- http://www.post-gazette.com/pg/10336/1107458-54.stm
“Profit From the Russian Gas Crisis No One’s Covering: “…I have already discussed the likelihood that the accelerating production volume in US shale gas will end up allowing the export of LNG, especially from the Cove Point, Maryland, terminal (the largest LNG facility on the East Coast), and especially to Europe (see “A Solution for North America’s Natural Gas Surplus” from November 2nd). Given the virtual certainty the shale gas (and, to a lesser extent, unconventional production from coal bed methane) will result in a continuing surplus on the American market, an LNG outlet to Europe and elsewhere allows for increasing production profits on one side of the Atlantic from LNG sales on the other. This is going to allow investors to “play” the rising differential between LNG and piped gas in the European market by investing in US and Canadian shale gas producers…” ” (Kent Moors)- http://seekingalpha.com/article/239098-profit-from-the-russian-gas-crisis-no-ones-covering & http://oilandenergyinvestor.com/2010/11/profit-from-the-russian-gas-crisis-no-ones-covering/
“US to Gain Competitive Edge in Global LNG Market: “…However, current developments indicate that the US is likely to reach the stage of self-sufficiency in coming future. Moreover, the country may achieve a competitive place in the global LNG export market…” ” (RNCOS)- http://pr-usa.net/index.php?option=com_content&task=view&id=578085&Itemid=32
“”U.S. Natural Gas Supply: “…The U.S. natural gas resource should continue to expand in the coming years…Advanced Resources International, in a report commissioned for Cheniere’s application with the Department of Energy for LNG export authorization, estimates that the U.S. has 2,585 Tcf of technically recoverable gas reserves, or 113 years of U.S. demand at 2009 levels…” ” (Cheniere Energy Inc.: “North America’s LNG Gateway”)- http://www.cheniere.com/lng_industry/us_natural_gas_supply.shtml
“Beach pursues boutique LNG project: “…The abundance of shale gas reserves has driven US gas prices down sharply and fuelled interest in the US becoming an LNG exporter. Two LNG export projects for the US have been announced this year, the latest a $US2 billion proposal involving Freeport and Macquarie. The projects represent competition for Australian LNG suppliers in Asian markets…” ” (Australia)- http://www.smh.com.au/business/beach-pursues-boutique-lng-project-20101125-1893c.html
“Think the unthinkable: Gas glut could make the U.S. an LNG exporter: “…These factors are setting up what was an unthinkable scenario just a few years ago – that the U.S. might become a net exporter of natural gas. There are some signs of that change in the works…” ” (Fuel Fix)- http://fuelfix.com/energywatch/2010/11/10/think-the-unthinkable-gas-glut-could-make-the-u-s-an-lng-exporter/
“Natural Gas Rebound Looking Likely in 2011: “…Analysts argue that the natural gas oversupply in the United States could make the nation a major natural gas exporter in upcoming years. Demand for gas is soaring in Asia and other emerging markets as their economies expand. More liquefied natural gas export facilities could be developed going forward. The Wall Street Journal reported that a subsidiary of Cheniere Energy is working on a deal to supply liquefied natural gas to one of China’s largest independently owned natural gas companies. Chesapeake Energy’s Chief Executive Aubrey McClendon told investors at a conference he has been in talks with Cheniere to supply gas to the proposed facility. While Cheniere would still need to build the liquefaction facility, the company’s CEO believes that interest in the project from natural gas suppliers such as Chesapeake, as well as Chinese interest “confirms the global appetite for US natural gas.”…” ” (CNN Money)- http://money.cnn.com/news/newsfeeds/articles/marketwire/0704136.htm
“China’s Relentless Hunt for Energy: “…To meet that demand, China’s biggest energy companies have gone on a buying spree. Last year was a record year for China’s oil and gas acquisitions, with $24.3 billion in deals, up from $17.1 billion in 2009…Given that three-quarters of the world’s exploration and production companies are headquartered in North America, the Chinese are likely to bid for U.S. companies, bankers said. “All the Chinese majors will be in North America in the next two years,” O’Malley said…Yet in 2010, Cnooc acquired oil-and-gas assets in the Eagle Ford Shale project in South Texas for $1.1 billion…” ” (The Wall Street Journal)- http://blogs.wsj.com/deals/2011/01/03/chinas-relentless-hunt-for-energy/


Filed under Energy Independence? Tagged with , , , ,

Steuben Co. Gas drilling committee mulls taking drill cuttings Jan. 11, 2011

January 24, 2011

Gas drilling committee mulls taking drill cuttings 

 By Mary Perham
Posted Jan 11, 2011 @ 11:00 AM

//

Bath, NY —

A proposal for the Steuben County landfill to accept drill cuttings from Marcellus Shale natural gas wells in Pennsylvania was under close scrutiny Wednesday.
An overview of a study on potential radioactivity of the rock and soil was presented to the county Legislature’s Public Works Committee, with nearly a dozen drilling activists objecting to the landfill proposal.
“The subject is too complex,” said Susan Multer, president of the Steuben County League of Women Voters and a member of People for a Healthy Environment. “Too many things have gone wrong.”
For nearly a year, the Public Works Committee has been considering a plan to accept drill cuttings from the well bores, removed before the well is hydraulically fractured, or “fracked,” to stimulate the flow of gas from the shale.

Filed under Waste Tagged with , , , ,

PSC on natural gas pipelines/gathering lines. Jan 20, 2011, Norwich

January 21, 2011

Chenango, Otsego, Delaware, Madison Regional Natural Gas Collaborative in Norwich. Jan 20, 2011.

 

The audio for this meeting is available at: http://changetheframe.com/audio/four%20county%20fracking%20forum-processed.mp3 It’s about 2 hours. 1:59:55

A video will be posted at www.ShaleShockMedia.org at some point. This will take at least 1 week…

The very interesting thing I heard from this meeting:

  • The definition of what makes a “gathering line” different from a “trunk line” is the length, diameter, and pressure of the pipe. But the definition is somewhat fuzzy. Anything above a certain size/pressure is regulated by the NY Dept. of Public Safety. Below that, these smaller typically gathering lines are completely unregulated by the state. The state does not even have details about the location of these lines.
  • The good thing is (since NY is a Home-Rule state) that this creates an opportunity for local municipalities to create local laws which regulate gathering lines. But municipalities now seem pretty uninformed about this.  Bill Houston

=======================

Yesterday I attended a meeting of the Chenango, Otsego, Delaware, Madison Regional Natural Gas Collaborative in Norwich.

The speaker was Jim Austin of the Public Service Commission.
Jim gave a presentation of what the PSC does in the way of permitting local and state gas lines.  PSC is responsible for the permitting of gas lines of greater that 125 psi over 1000 feet long.
FERC is responsible for permitting interstate gas lines.
PSC has regulations that apply to these pipelines in a 3 tiered formula.  Smaller lines requiring less scrutiny than larger ones.  Details are to be found here:
There are two areas of concern that I can see with the PSC process.  The first is that PSC is very involved with giving waivers from local ‘unreasonable’ regulations.  The other is that PSC has 2 (two) people in the field doing inspections for the whole state of NY.
It became very clear at the meeting that the concerns of most of those present were about the pipelines that are NOT permitted by PSC.  These are gathering lines under 125 psi.  It seems that no one permits, supervises, inspects or maps these lines except the gas companies.  There are very many more gathering lines than there are lines over 125 psi (example – more capillaries than veins or arteries).  In the event that there is more than an acre of disturbance for gathering lines, then a SPIDES permit would apply.  Jim believes that gathering lines are regulated by local government.  These low pressure pipelines are plastic, and are usually buried 2 to 4 feet deep.  They are not subject to Dig Safe labeling, but are required to have trace wire.
Farmers are very concerned about these gathering lines and the Farm Bureau wants PSC to supervise all gas lines and include them in Dig Safe NY.  There is legislation being written to implement this.
The pipeline safety department of PSC oversees compliance for both PSC and FERC permitted gas lines.  The question was raised if they also inspect lines below 125 psi.  To answer this and other safety questions, the pipeline safety department will be asked to send someone to address the collaborative at a future date.
I asked when the smell is added to gas so that the public could be aware of leaks in gas lines.  Stephen Keyes of Norse Energy was unable to answer the question, but I will be emailing him to follow up.
My general impression is that rather like DEC, PSC is woefully understaffed to cope with the proposed gas invasion, and there is insufficient regulation of low pressure gathering lines.  Caroline Martin

Filed under Pipelines Tagged with , , , ,

NATURAL GAS: Investors press for ‘more responsible’ gas drilling

January 21, 2011

An E&E Publishing Service
NATURAL GAS: Investors press for ‘more responsible’ gas drilling  (Friday, January 21, 2011)
Mike Soraghan, E&E reporter
A coalition of investors today is announcing a campaign to press publicly traded oil and gas companies to disclose how they plan to handle the risks of hydraulic fracturing.
Led by the nonprofit investor group Ceres, they are filing nine resolutions with petroleum companies that they hope will lead to “more responsible” fracturing processes. Among the companies are Exxon Mobil Corp., Chevron Corp. and Cabot Oil & Gas, which has been accused of contaminating wells in Dimock, Pa.
The investors believe that petroleum companies have been too vague about the pollution, safety and regulatory risks created by the process, which is essential to developing the country’s vast shale gas reserves.
“This grows out of the work we’ve done with our investors in climate change,” Andrew Logan, director of the Oil and Gas Program at Ceres, said in an interview. “The vision is that gas is a bridge to a low-carbon future. That’s been a position of these investors for a long time. As they’ve learned about the fracturing process, they’ve seen the need to engage with industry to make sure it’s being done sustainably.”
The oil and gas industry says fracturing is a safe process and that existing state regulations are sufficient to protect drill site neighbors and the public. It has vigorously fought proposals in Congress to have U.S. EPA regulate the process.
Companies have also resisted similar shareholder resolutions on fracturing in the past.
But Ceres officials say that resolutions filed in 2010 spurred at least one company to begin disclosing the measures it takes to ensure well integrity, describe its recycling practices, and discuss “green completions” that reduce greenhouse gas emissions.
Pressing for disclosure and ‘best practices’
An increase in gas supply, made possible by advancements in fracturing technology, has led to the idea that gas can serve as a bridge while cleaner sources of energy are developed. Burning gas emits about half as much carbon as burning coal.
But fracturing, and the drilling process itself, brings environmental risks. And the shale boom is bringing it to areas long unaccustomed to heavy petroleum development, such as Pennsylvania. Cabot is contesting the allegations in Dimock.
Fracturing involves injecting tankerloads of chemical-laced water into wells to crack apart rock formations and release oil and gas. The chemicals used can be as mundane as ice cream thickener and as toxic as benzene.
The shareholder proposals ask companies to disclose their policies and strategies for reducing environmental and financial risks from chemicals use, water impacts and a host of other issues. They also request that the companies adopt “best management practices,” such as reusing the waste water from fracturing, testing the cementing of wells and disclosure of the chemicals used in the process.

Filed under Risk Tagged with , , ,

Clear Waters Winter Issue devoted to Gas Drilling

January 20, 2011

The winter edition of Clear Waters Magazine (New York Water Environment Association’s quarterly publication) is fracking focused.  Check it out!

http://nywea.org/clearwaters/10-4-winter/

Hydrogeologist Reviews Marcellus Shale and Natural Gas Production in New York
by William M. Kappel  http://nywea.org/clearwaters/10-4-winter/7.pdf

Filed under Waste, Water Tagged with , , , , , ,

U.S. takes action to protect public health in TX Jan 18, 2011

January 20, 2011

Environmental Protection Agency Region 6 South Central – Top Stories.

U.S. takes action to protect public health and enforce EPA imminent and substantial endangerments order in southern Parker County

The United States Department of Justice filed a complaint today against Range Production Company and Range Resources Corporation (“Range”) in federal district court, seeking enforcement of a Dec. 7, 2010, emergency order issued by the Environmental Protection Agency against the companies. In the order, the EPA determined that Range had caused or contributed to the contamination of a drinking water aquifer in Parker County, Texas. The complaint asks the Dallas court to direct the companies to comply with portions of the order and to pay a civil penalty of up to $16,500 per day of violation.

EPA issued the order following an investigation into complaints from residents about methane contamination in their private drinking water wells. According to allegations in the complaint filed today, testing confirmed the presence of methane gas and the presence of other contaminants, including benzene, a known human carcinogen, in the well water

Residents noticed problems with their private drinking water wells soon after Range completed drilling and well stimulation operations on two natural gas wells located near the residents’ drinking water wells. During the course of conducting its investigation and while consulting with various state authorities, EPA determined that the risk of explosion warranted the issuance of an emergency order.

While Range offered to provide two affected residences alternative drinking water and installed explosivity meters in their homes after issuance of the emergency order, it has failed to comply with other requirements to conduct surveys of private and public water wells in the vicinity, to submit plans for field testing, and to submit plans to study how the methane and other contaminants may have migrated from the production wells, in addition to plans to remediate affected portions of the aquifer.

Complaint against Range Production Company (10 pp, 27 KB, About PDF)
Exhibit A to the complaint (12 pp, 2.87 MB, About PDF)

Filed under EPA, Official Actions--Legislation, judgments,regulation, Water Tagged with , , , , , , ,

EPA Gas-drilling/peer-review-panel-for-fracking-study-includes-six-pa-scientists Jan. 18, 2011

January 18, 2011

List of EPA Peer Review Panel http://yosemite.epa.gov/sab/sabpeople.nsf/WebCommitteesSubcommittees/Hydraulic%20Fracturing%20Study%20Plan%20Review%20Panel

Gas-drilling/peer-review-panel-for-epa-fracking-study-includes-six-pa-scientists-1.1091757.  Times Tribune

Peer-review panel for EPA fracking study includes six Pa. scientists
By Laura Legere (Staff Writer)
Published: January 18, 2011
A panel of geologists, toxicologists, engineers and doctors that will peer-review a high-profile Environmental Protection Agency study of hydraulic fracturing will include six scientists from Pennsylvania, more than any other state.

The panel will review the techniques and analysis the EPA uses to draft a study of the potential environmental and health impacts of hydraulic fracturing – the process used in natural gas exploration of injecting a high-pressure mix of chemically treated water and sand underground to break apart a rock formation and release the gas.

The panel might also be called on to review the conclusions of the study, which are slated for release in 2012.

The board, called the Hydraulic Fracturing Study Plan Review Panel, was narrowed to 23 members from a list of 88 nominated candidates, some of whom were criticized in public comments submitted by industry or environmental groups for being biased.

All but four members selected for the panel are affiliated with research universities and none is currently employed by an oil or gas company.

Five of seven members of a previous peer-review panel involved in a 2004 EPA study of hydraulic fracturing in coal-bed methane wells were current or former employees of the oil and gas industry. That study’s findings, that hydraulic fracturing poses “little or no threat” to drinking water aquifers, has been touted by the industry but challenged by an EPA whistle-blower.

In a memo announcing the new panel, the EPA found “no conflicts of interest or appearances of a lack of impartiality for the members of this panel.”

It will be led by David A. Dzombak, professor of environmental engineering at Carnegie Mellon University, and include Michel Boufadel of Temple University; Elizabeth Boyer of Penn State University; Richard Hammack, a Pittsburgh-based roject manager for the U.S. Department of Energy; Jeanne VanBriesen of Carnegie Mellon and Radisav D. Vidic of the University of Pittsburgh.

Contact the writer: llegere@timesshamrock.com

Read more: http://thetimes-tribune.com/news/gas-drilling/peer-review-panel-for-epa-fracking-study-includes-six-pa-scientists-1.1091757#ixzz1BPnY6jzD

Filed under EPA, Water Tagged with , , , , , , ,

Cuyler Forum on Gas Drilling Feb. 28, Fire Hall

January 17, 2011 2 Comments

The Cuyler Forum on Gas Drilling Monday, February 28th, 2011
6:00 p.m. to 8:00 p.m.
at the Cuyler Firehouse on Rte. 13

Presenter: Brett Chedzoy,Schuyler Cooperative Extension
Panelists:  Joe Heath, Esq., Mary Jane Uttech, Stan Scobie

Filed under events Tagged with ,

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