The Charleston Gazette reports that the pit and impoundment study required by the Horizontal Well Act of 2011, and conducted by West Virginia University, identified problems with how pits and impoundments are constructed and with how state officials inspect them. In a recently-released summary of the report, the West Virginia Department of Environmental Protection (DEP) acknowledged that the WVU study identified various construction problems, such as improper compaction, inadequately secured liners, and standing water on berms. Overall, however, DEP concluded that “the current regulatory framework is sufficient to properly regulate the construction, operation, and maintenance of large capacity pits and impoundments.” In response to the study, DEP is training its inspectors in the proper design, construction and maintenance of large capacity pits and impoundments, and has developed a standardized inspection checklist.
The noise, light, and dust study required by the Horizontal Well Act remains delayed, and a third study regarding air pollution is not due until July 2013.
Reflecting the development of barge transport for moving fluids from natural gas exploration and production activities, GreenHunter Water, LLC recently bought a 10.8 acre barging terminal facility in Wheeling, West Virginia. The terminal facility was previously used as a gasoline storage facility and will be converted into a water treatment, recycling, and condensate-handling logistics terminal. The facility is scheduled to begin operation in the third quarter of this year. The price for the barge facility was $750,000, and is touted as being the first of its kind in the country. GreenHunter Water is a subsidiary of GreenHunter Energy, Inc., a water resource, waste management and environmental services company.
According to the Charleston Gazette, Denver-based Energy Corporation of America (ECA) will build a three-story office building Northgate Business Park in Charleston. The building will have more than 5,000 square feet of space and house 100-200 employees. It will replace the company’s current eastern regional headquarters in the Kanawha City neighborhood of Charleston. ECA has operations in the United States and New Zealand, and is actively engaged in natural gas exploration and production in the Marcellus Shale play.
The WVU College of Law will tackle hydraulic fracturing issues in the upcoming National Energy & Sustainability Moot Court Competition. On March 14-16, 2013, moot court teams will gather in Morgantown to address issues involving alleged violations of the Clean Air Act and Migratory Bird Treaty by a “mid-Atlantic national gas company” involved in hydraulic fracturing. The sample case was designed to bringpractical compliance and enforcement issues into the classroom and to raise awareness of vital business and environmental issues affecting West Virginia and other gas-rich states. The Competition includes teams from American University, Duquesne, Florida State, Colorado, Maryland, Utah and Wyoming, West Virginia, and others, at WVU’s Erickson Alumni Center.
As reported in the Fayette Tribune, West Virginia Governor Earl Ray Tomblin’s Natural Gas Vehicle Task Force has released its final report on how the state can utilize its natural gas resources to reduce transportation costs and boost the local economy. The Task Force identified locations within the state that contain large concentrations of government fleet vehicles, and therefore have the greatest demand for fueling infrastructure (map). The Task force suggested tax credits for the purchase of natural gas vehicles and for private investments in the construction of fueling stations. The Task Force also recommended that the state develop programs to educate West Virginians about natural gas vehicles, including the benefits of adopting these vehicles and information on how to maintain and operate them.
On February 28, 2013, the West Virginia House of Delegates reportedly approved a measure that would significantly increase maximum civil penalties for safety violations involving natural gas pipelines regulated by the West Virginia Public Service Commission (PSC). Under current law, the PSC may impose a civil penalty of $1,000 per day for a pipeline safety violation, up to a maximum of $200,000. The measure passed by the House of Delegates would raise those limits to $200,000 per day and up to a maximum of $2 million. The penalty increase would apply only to natural gas pipeline facilities that are under the jurisdiction of PSC, which oversees about 10 percent of the facilities in the state. The other 90 percent fall under state or federal jurisdiction. The legislation now moves to the West Virginia Senate.
Randy Huffman, Secretary of the West Virginia Department of Environmental Protection (DEP), reportedly defended the agency’s tardiness in finalizing two natural gas drilling studies that were due at the end of 2012, as mandated by the 2011 Horizontal Well Act, during a presentation to the West Virginia Legislature on February 21, 2013. “I made the decision to be late rather than turning in something we wouldn’t be proud of,” Huffman said. The two late studies include an investigation of the safety of pits and impoundments and the evaluation of noise, light and dust generated by the drilling of horizontal wells as they relate to the Horizontal Well Act’s setback requirements. Earlier this year, Secretary Huffman said he hoped to complete a report for the impoundment study by mid-February, but at the time did not offer an estimated completion date for the noise, light and dust study. DEP noted in the February 21st presentation to the legislature that the logistical demands involved with completing the studies were overwhelming in light of the statutory deadline. “We have taken a lot of time with these studies to try to be as scientific and comprehensive as we could,” Huffman said. A third DEP study examining air pollution from oil and gas operations is due on July 1, 2013.
As reported in the Akron Beacon Journal Online, Chesapeake Energy has hit oil in West Virginia’s Ohio and Marshall Counties. Chesapeake reports that it drew an average of 290 barrels of oil per day from one Ohio County well in 2012
with another Ohio County well producing an average of 195 barrels of oil per day. Additional wells in Marshall County and across the Northern Panhandle are also showing strong oil production in addition to producing other liquids- such as ethane, propane and butane. Chesapeake released a report detailing its successes in the 2012 operating year showing year-end proven reserves of 15.7 Tcfe.
James Cutler, CEO of Houston-based Appalachian Resins, Inc., indicated to the State Journal that his company is preparing to announce the details of its planned $500 million integrated polyethylene facility in Marshall County, south of Wheeling. Funding for the project has appeared to come together, reports the State Journal. The plant will include an ethane cracker that would consume 15,000 barrels of ethane per day. Ethane is produced with the “wet gas” found in the Marcellus Shale formation in northern West Virginia, Southwestern Pennsylvania and Ohio. The plant’s cracker will produce ethylene, and the facility will ultimately produce polyethylene resins, such as HDPE. The plant is projected to produce upwards of 120 permanent jobs.
The State Journal reports that West Virginia lawmakers introduced 60 energy-related bills in the first two days of the 2013 regular West Virginia legislative session. Twenty four of the bills concern natural gas, while 16 address a broad range of coal-related issues. In addition, The Dominion Post reports that West Virginia’s joint Legislative Rule Making Review Committee gave a “qualified blessing” to the rules proposed by the Department of Environmental Protection (DEP) to govern horizontal well development. WVDEP developed the proposed rules in 2012 in an effort to implement the Natural Gas Horizontal Well Control Act of 2011. In the next step of the rulemaking process, the proposed rules will be reviewed by House and Senate committees.
The Charleston Gazette reports that Kureha PGA is making a product in its Belle facility that may be used by oil and gas companies. The product is a polyglycolic acid resin (PGA) called Kuredux, a high-performance polymer that has been certified as a biodegradable plastic in the U. S., Europe and Japan. Kureha PGA indicates that the product will help to minimize the damage caused to subterranean formations during production of oil and gas and will also help to minimize the number of operating steps necessary to bring wells on-line faster. According to the article, the product is meant to be used underground until it serves it purpose, and then biodegrades.
At a recent press conference, West Virginia Governor Earl Ray Tomblin was reportedly confident that an ethane cracker will be built in West Virginia “in the future.” Stating only that the Commerce Department “continues to talk with those interested,” Governor Tomblin expressed hope for a potential cracker plant to be located in West Virginia. Although Shell Chemical announced on March 15, 2012 that it would consider a site in Beaver County, Pennsylvania, to build its ethane cracker plant, the Shell deal is not final. Pennsylvania Governor Tom Corbett has already offered Shell a tax credit incentive valued at $1.65 billion over 25 years.
The State Journal reports that Fairmont Brine Processing wastewater recycling facility has delayed its re-opening by a few months. The facility began operations in 2009 but shut down shortly thereafter due to an unmanageable level of corrosion. Wastewater recycling was accomplished through settling, filtration and multi-phase evaporation processes. Fairmont Brine is reportedly hoping to close on funding for the re-opening project by the end of February, and is looking at a potential start date of September 2013.
West Virginia Public Broadcasting reports that a new study has begun regarding the use of water in hydraulic fracturing in the Marcellus Shale in West Virginia, Pennsylvania, and Ohio. The Robert and Patricia Switzer Foundation is providing funding for the study, which is being undertaken by Downstream Strategies and the non-profit organization Earthworks, as well as Switzer Foundation scholars. The goal of the study is to develop a life cycle analysis of water involved in drilling and hydraulic fracturing. In addition to the amount of water used, the study will identify the source and the final destination of the water in order to compare water use for hydraulic fracturing to the water used for other types of energy production. The findings of the study are expected to be available by the end of 2013.
The Intelligencer reports that Antero Resources will spend $1.65 billion in 2013 on development of the Utica Shale in Ohio and Marcellus Shale in West Virginia. Antero will reportedly operate two Utica rigs and 12 Marcellus rigs. Antero also plans to build an 80-mile freshwater pipeline in West Virginia across Doddridge, Harrison, and Ritchie Counties. The pipeline will not only reduce costs for the company but will also help reduce its impact on rural West Virginia. The West Virginia Department of Environmental Protection has received several drilling applications from Antero for Tyler, Doddridge, and Ritchie counties in recent days.