Easy for them to do - they don't have any Marcellus shale.
From: marcellusgasinfo(a)googlegroups.com
[mailto:marcellusgasinfo@googlegroups.com] On Behalf Of Kim Knight
Sent: Wednesday, June 29, 2011 10:45 PM
To: ShaleShock; shaleshockcny CNY; marcellusgasinfo(a)googlegroups.com
Subject: [MarcellusGasInfo] NJ Assembly and Senate ban fracking
The NJ Senate banned fracking with a vote of 33-1 and the NJ Assembly banned
it with a vote of 58-11. It is now down to whether the governor, Chris
…
[View More]Christie, will sign it.
Article:
http://www.newsday.com/news/region-state/nj-lawmakers-pass-ban-on-gas-drilli
ng-technique-1.2994891
Kim
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No virus found in this message.
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[View Less]
Thank you for the notice, Greg.
That is the evening of special election day- October 4th.
We could look at it as a victory party, or as an occasion to cry in our beer- whichever the election returns indicate.
Frank
----- Original Message -----
From: Carroll, Greg B
To: dsgjr(a)aol.com ; clrank2(a)gmail.com ; fyoung(a)mountain.net
Cc: wvec-board(a)yahoogroups.com ; ec(a)osenergy.org ; wyro(a)appalight.com ; djsoeder(a)yahoo.com
Sent: Thursday, June 30, 2011 10:55 AM
…
[View More]Subject: [wvec-board] E-Council Green Jam-Tues. Oct. 4th
Dear Folks , I wanted to make sure I got the right date out. NOT the 2nd but the 4th of Oct. That’s a Tuesday evening. The benefit will be at the Empty Glass in Charleston, Food –Music-Fun…after work from 6 to 10…..many local musicians! Please pass the word. Long time away but good to start in advance. Greg
From: wvec-board(a)yahoogroups.com [mailto:wvec-board@yahoogroups.com] On Behalf Of dsgjr(a)aol.com
Sent: Friday, June 24, 2011 3:10 PM
To: clrank2(a)gmail.com; fyoung(a)mountain.net
Cc: wvec-board(a)yahoogroups.com; ec(a)osenergy.org; wyro(a)appalight.com; djsoeder(a)yahoo.com
Subject: Re: [wvec-board] Gas drilling hazardous waste landfill in Preston County?
Actually, I have heard rumors that the other landfills in the area that DEP has authorized to receive this waste are none to happy about this new proposed landfill -- They don't want the competition! Like everything else in this world, it's all about the money.
Don Garvin
In a message dated 6/24/2011 12:15:35 P.M. Eastern Standard Time, clrank2(a)gmail.com writes:
Yes, Frank.
This has been and is a hot button issue for Friends of Cheat, the PA-WV watershed COMPACT, Upper Mon River Assoc. and all the Dunkard Creek, Sierra and other folks in northern WV where the bulk of the horizontal marcellus drilling is happening -- especially the two in Morgantown near the water intake... and the two in the Dunkard Creek watershed....
Chesapeake and others have already reduced or eliminated entirely the drilling pits and have been catching the drilling muds, etc in open truck beds (don't know the official terminology for them) and taking them to other already existing landfills ----- ... Dan may be aware of the attitudes of these landfill operators, but with the growing amount of waste generated by the drilling in these northern WV Counties i'm sure they can see their projected capacity quickly being stressed or stretched to the limits and welcome this new project to relieve pressure on their limits. .... Needless to say others in the communities are none too happy...
Cindy
~~~~~~~~~~~~~~~~~
On Fri, Jun 24, 2011 at 12:36 PM, Frank Young <fyoung(a)mountain.net> wrote:
This would seem to indicate public acknowledgement of serious waste disposal issues related to the by-products of shale gas drilling.
----- Original Message -----
From: Rick Buckley
To: Frank Young ; Gordon Jones ; gary singleton ; John Gorrell ; Mike Reese
Cc: Rick Buckley
Sent: Friday, June 24, 2011 11:30 AM
Subject: Landfill in Preston County
I guess this issue did not go away. This is what I had mentioned last evening regarding creating a landfill in Preston County related to Marcellus drilling. (see attached)
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[View Less]
OK - How about instead I make up a handout:
Coal Ash
Top Ten Toxics
Arsenic
Selenium
Cadmium
Lead
Mercury
Jim et al - next five please.
We have that for the media and to present to McKinley, along with a
statement of our concerns...?
Also - I'll have several signs for folks - unless you want to make your own.
On Tue, Jun 21, 2011 at 10:18 AM, Petra&John Wood <pbjmwood(a)gmail.com> wrote:
> Hi Jim - as I said in my earlier email, I have no access to getting fly
…
[View More]> ash. sorry - petra
>
>
> On Tue, Jun 21, 2011 at 10:09 AM, Jim Sconyers <jimscon(a)gmail.com> wrote:
>>
>> Hi Petra - can you get some actual ash for the Thursday event please?
>>
>>
>> ---------- Forwarded message ----------
>> From: Jim Sconyers <jimscon(a)gmail.com>
>> Date: Tue, Jun 21, 2011 at 10:07 AM
>> Subject: Re: [EC] Fwd: Tr-Ash Talk: W.V. Rep. McKinley Sells Out
>> Constituents
>> To: Jim Sconyers <jim_scon(a)yahoo.com>
>> Cc: James Kotcon <jkotcon(a)wvu.edu>, ec(a)osenergy.org, Nicole Good
>> <nicolegood.wv(a)gmail.com>, Gwen Jones <gwenjones23(a)yahoo.com>,
>> Petra&John Wood <pbjmwood(a)gmail.com>
>>
>>
>> Folks -
>>
>> We're on for Thursday at 11:00 AM.
>> Basic outline:
>> Picket on sidewalk in front of the building, work with media if they
>> come, then go inside to give our gifts of real coal ash to Congressman
>> McKinley. We'll be sending a media alert later today - it is attached.
>>
>> Come on down - it'll be fun!
>>
>> <Sally - the time is now definite, so please send the request to Mon
>> Group for folks to participate whenever you're ready - thanks.>
>>
>> On Mon, Jun 20, 2011 at 7:40 PM, Jim Sconyers <jim_scon(a)yahoo.com> wrote:
>> > Can you join us for this on Thursday? We need numbers - you can speak if
>> > you
>> > like, but that is not required. Hold a sign, be one of the number
>> > distressed
>> > about McKinley on coal ash protection.
>> >
>> > Jim Sconyers
>> > jim_scon(a)yahoo.com
>> > 304.698.9628
>> >
>> > Remember: Mother Nature bats last.
>> >
>> > ________________________________
>> > From: Jim Sconyers <jimscon(a)gmail.com>
>> > To: James Kotcon <jkotcon(a)wvu.edu>
>> > Cc: ec(a)osenergy.org; Nicole Good <nicolegood.wv(a)gmail.com>; Gwen Jones
>> > <gwenjones23(a)yahoo.com>; Petra&John Wood <pbjmwood(a)gmail.com>
>> > Sent: Mon, June 20, 2011 4:56:57 PM
>> > Subject: Re: [EC] Fwd: Tr-Ash Talk: W.V. Rep. McKinley Sells Out
>> > Constituents
>> >
>> > Does 11:00 Tursday work? Or do we need to move to 10:00?
>> >
>> > On Mon, Jun 20, 2011 at 4:23 PM, James Kotcon <jkotcon(a)wvu.edu> wrote:
>> >> I agree tomorrow is too short notice. I have one meeting Thursday
>> >> afternoon, but could possibly do things in the morning or at noon.
>> >>
>> >> JBK
>> >>
>> >>>>> Jim Sconyers <jimscon(a)gmail.com> 6/20/2011 4:15 PM >>>
>> >> Folks - I don't see how we can do this tomorrow - haven't sent
>> >> anything to media yet, they need at least 24 hours.
>> >>
>> >> How about we set it for Thurs 11:00? I know the mark-up may have
>> >> already happened by then - or it may not. If not, we're fine. If it
>> >> has, we blast him for what he did, not for what he's about to do.
>> >>
>> >> Feedback?
>> >>
>> >> On Mon, Jun 20, 2011 at 3:50 PM, Jim Sconyers <jimscon(a)gmail.com>
>> >> wrote:
>> >>> Here's what I think we need if we want to make this happen.
>> >>> People - critical mass would be 4 - 5, more is good.
>> >>> Signs - I can make 2 - "McKinley to Citizens: Kiss My Ash" "Coal Ash
>> >>> in Our Air and Water - What the Health?"
>> >>> Baggie of coal ash for each person
>> >>>
>> >>> A "plan"
>> >>> The Morgantown office is staffed 9 - 5 M - F.
>> >>> We go there, picket in front of the building (can anyone describe
>> >> it,
>> >>> location, sidewalk, etc.?)
>> >>> Meet media in front if they show. I would say 11 AM - -?
>> >>> Talk to media - what happened (is about to happen), why we're
>> >>> concerned, story line being northern WV is epicenter of massive ash
>> >>> dumping, yet McKinley wants to stop the EPA from protecting or
>> >> health
>> >>> through commonsense - or ANY - regulation of toxic coal ash. Who is
>> >>> McKinley serving in Washington? Sure isn't the people of his
>> >> district.
>> >>>
>> >>> Media alert - needs to go out within an hour or two of now.
>> >>>
>> >>> Can at least 4 - 5 commit to doing this?
>> >>>
>> >>> I can.
>> >>>
>> >>> Please use reply all.....
>> >>>
>> >>> Sally = please forward to Mon Group.
>> >>>
>> >>> 709 Beechurst Ave., Suite 14B
>> >>> Morgantown, WV 26505
>> >>> Phone: 304.284.8506
>> >>> Hours: M-F: 9:00 a.m. to 5:00 p.m
>> >>>
>> >>> On Mon, Jun 20, 2011 at 3:31 PM, James Kotcon <jkotcon(a)wvu.edu>
>> >> wrote:
>> >>>> Note: The markup (on McKinley's bill) was rescheduled for next
>> >> Tuesday,
>> >>>> June 21 at 4 p.m. Actions Tuesday morning?
>> >>>>
>> >>>> JBK
>> >>>>
>> >>>>>>> Jim Sconyers <jimscon(a)gmail.com> 6/17/2011 3:24 PM >>>
>> >>>> Jim -
>> >>>> I think we need to do something. This worthless SOB needs some
>> >>>> consequences. What can we do? How about picketing his Morgantown
>> >>>> office and getting media there? Or.......?
>> >>>>
>> >>>>
>> >>>>
>> >>>> ---------- Forwarded message ----------
>> >>>> From: Raviya Ismail <rismail(a)earthjustice.org>
>> >>>> Date: Fri, Jun 17, 2011 at 9:13 AM
>> >>>> Subject: Tr-Ash Talk: W.V. Rep. McKinley Sells Out Constituents
>> >>>> To: COAL-COMBUSTION-WASTE(a)lists.sierraclub.org
>> >>>>
>> >>>>
>> >>>> Here is our latest Tr-Ash Talk blog:
>> >>>>
>> >>
>> >>
>> >> http://earthjustice.org/blog/2011-june/tr-ash-talk-w-v-rep-mckinley-sells-o…
>> >>
>> >>>>
>> >>>>
>> >>>> Emily Enderle
>> >>>> Tr-Ash Talk: W.V. Rep. McKinley Sells Out Constituents
>> >>>> Congressman’s district is home to largest coal ash pond
>> >>>>
>> >>>> Here we go again.
>> >>>>
>> >>>> Some of our elected leaders are once more maneuvering to block
>> >>>> much-needed health protections against coal ash. Rep. David
>> >> McKinley
>> >>>> (R-WV) has sponsored a bill that would broadly remove federal
>> >>>> authority for any regulation of coal ash ever. This bill, if
>> >> enacted,
>> >>>> also would conveniently protect his business interests. In April,
>> >>>> Politico exposed Rep. McKinley’s business interest in ensuring
>> >> that
>> >>>> coal ash is not regulated. Rep McKinley owns the largest
>> >> engineering
>> >>>> firm in West Virginia and his company uses coal ash in concrete, as
>> >>>> fill for roads and other uses.
>> >>>>
>> >>>> Rep. McKinley also represents a district that has the largest coal
>> >> ash
>> >>>> pond in the nation, and his bill goes against what he promised West
>> >>>> Virginian Curt Havens, veteran and constituent. Havens was at the
>> >>>> Energy and Commerce hearing in April, when Rep. McKinley said,
>> >> about
>> >>>> prior coal ash threats, "I want to make sure that never happens
>> >> again
>> >>>> to another family in America." (Those comments start at minute
>> >> marker
>> >>>> 2:26:26.) Again, business interests are coming before the interest
>> >> of
>> >>>> protecting public health.
>> >>>>
>> >>>> During the House budget negotiations February frenzy, Rep. McKinley
>> >>>> sponsored amendment 217 that would have prohibited the EPA from
>> >> using
>> >>>> any of their funds to move forward with the health protective
>> >> Subtitle
>> >>>> C regulation. Rep. Cliff Stearns (R-FL) introduced amendment 10,
>> >>>> trying to achieve the same thing. It’s no surprise that both
>> >>>> congressmen are heavily supported by the energy sector.
>> >>>>
>> >>>> During his 2010 campaign Rep. McKinley received $43,300 from energy
>> >>>> companies, and $22,751 of that came from mining interests,
>> >> according
>> >>>> to the Center for Responsive Politics.
>> >>>> Rep. McKinley’s current effort to stop the regulation of this
>> >> potent
>> >>>> waste, H.R. 1391, would “amend the Solid Waste Disposal Act to
>> >>>> exempt
>> >>>> fly ash waste, bottom ash waste, slag waste and flue gas emission
>> >>>> control waste generated primarily from the combustion of coal or
>> >> other
>> >>>> fossil fuels from regulation as hazardous waste under such Act.”
>> >>>>
>> >>>> H.R. 1391 was scheduled to be marked up in the Environment and
>> >> Economy
>> >>>> subcommittee of Energy and Commerce this morning. The markup had to
>> >> be
>> >>>> rescheduled for next Tuesday, June 21 at 4 p.m. due to a drafting
>> >>>> error. The bill, as written, couldn’t have been much worse and
>> >>>> it’s
>> >>>> doubtful there will be any improvements as they fix the drafting
>> >>>> error.
>> >>>>
>> >>>> Rep. McKinley and the bill supporters will continue to put public
>> >>>> health at risk. Further, they will undermine the public coal ash
>> >>>> rulemaking currently underway that generated a record-breaking
>> >> 450,000
>> >>>> comments. This is a tragic example of how some elected officials
>> >> bow
>> >>>> to dirty polluters rather than heeding the concerns of their
>> >>>> constituents.
>> >>>>
>> >>>> - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - To
>> >>>> unsubscribe from the COAL-COMBUSTION-WASTE list, send any message
>> >> to:
>> >>>> COAL-COMBUSTION-WASTE-signoff-request(a)LISTS.SIERRACLUB.ORG Check
>> >> out
>> >>>> our Listserv Lists support site for more information:
>> >>>> http://www.sierraclub.org/lists/faq.asp
>> >>>>
>> >>>>
>> >>>> --
>> >>>> Jim Sconyers
>> >>>> jimscon(a)gmail.com
>> >>>> 304.698.9628
>> >>>>
>> >>>> _______________________________________________
>> >>>> EC mailing list
>> >>>> EC(a)osenergy.org
>> >>>> http://osenergy.org/mailman/listinfo/ec
>> >>>
>> >>>
>> >>>
>> >>> --
>> >>> Jim Sconyers
>> >>> jimscon(a)gmail.com
>> >>> 304.698.9628
>> >>>
>> >>> Remember, Mother Nature bats last.
>> >>>
>> >>
>> >>
>> >>
>> >> --
>> >> Jim Sconyers
>> >> jimscon(a)gmail.com
>> >> 304.698.9628
>> >>
>> >> Remember, Mother Nature bats last.
>> >>
>> >
>> >
>> >
>> > --
>> > Jim Sconyers
>> > jimscon(a)gmail.com
>> > 304.698.9628
>> >
>> > Remember, Mother Nature bats last.
>> >
>> > _______________________________________________
>> > EC mailing list
>> > EC(a)osenergy.org
>> > http://osenergy.org/mailman/listinfo/ec
>> >
>>
>>
>>
>> --
>> Jim Sconyers
>> jimscon(a)gmail.com
>> 304.698.9628
>>
>> Remember, Mother Nature bats last.
>>
>>
>>
>> --
>> Jim Sconyers
>> jimscon(a)gmail.com
>> 304.698.9628
>>
>> Remember, Mother Nature bats last.
>
>
--
Jim Sconyers
jimscon(a)gmail.com
304.698.9628
Remember, Mother Nature bats last.
[View Less]
Atop TV Sets, a Power Drain That Runs Nonstop By ELISABETH
ROSENTHAL<http://topics.nytimes.com/top/reference/timestopics/people/r/elisabeth_rose…>
Published:
June 25, 2011
Those little boxes that usher cable signals and digital recording capacity
into televisions have become the single largest electricity drain in many
American homes, with some typical home entertainment configurations eating
more power than a new refrigerator and even some central air-conditioning
systems.
Todd …
[View More]Heisler/The New York Times
A new study has found that some home entertainment systems eat more energy
than refrigerators or central air-conditioning systems.
Multimedia
Comparing Energy Use
- Green: A Blog About Energy and the
Environment<http://green.blogs.nytimes.com/?ref=us>
There are 160 million so-called set-top boxes in the United States, one
for every two people, and that number is rising. Many homes now have one or
more basic cable boxes as well as add-on DVRs, or digital video recorders,
which use 40 percent more power than the set-top box.
One high-definition DVR and one high-definition cable box use an average of
446 kilowatt hours a year, about 10 percent more than a 21-cubic-foot
energy-efficient refrigerator, a recent study found.
These set-top boxes are energy hogs mostly because their drives, tuners and
other components are generally running full tilt, or nearly so, 24 hours a
day, even when not in active use. The recent study, by the Natural Resources
Defense Council <http://www.nrdc.org/energy/files/settopboxes.pdf>,
concluded that the boxes consumed $3 billion in electricity per year in the
United States — and that 66 percent of that power is wasted when no one is
watching and shows are not being recorded. That is more power than the state
of Maryland uses over 12 months.
“People in the energy efficiency community worry a lot about these boxes,
since they will make it more difficult to lower home energy use,” said John
Wilson, a former member of the California Energy Commission who is now with
the San Francisco-based Energy Foundation. “Companies say it can’t be done
or it’s too expensive. But in my experience, neither one is true. It can be
done, and it often doesn’t cost much, if anything.”
The perpetually “powered on” state is largely a function of design and
programming choices made by electronics companies and cable and Internet
providers, which are related to the way cable networks function in the
United States. Fixes exist, but they are not currently being mandated or
deployed in the United States, critics say.
Similar devices in some European countries, for example, can automatically
go into standby mode when not in use, cutting power drawn by half. They can
also go into an optional “deep sleep,” which can reduce energy consumption
by about 95 percent compared with when the machine is active.
One British company, Pace <http://www.pace.com/global/>, sells such boxes to
American providers, who do not take advantage of the reduced energy options
because of worries that the lowest energy states could disrupt service.
Cable companies say customers will not tolerate the time it takes to reboot
the system once the system has been shut down or put to sleep.
“The issue of having more efficient equipment is of interest to us,” said
Justin Venech, a spokesman for Time Warner Cable. But, he added, “when we
purchase the equipment, functionality and cost are the primary
considerations.”
But energy efficiency experts say that technical fixes could eliminate or
minimize the waiting time and inconvenience, some at little expense.
Low-energy European systems reboot from deep sleep in one to two minutes.
Alan Meier, a scientist at Lawrence Berkeley National Laboratory, said of
the industry in the United States, “I don’t want to use the word ‘lazy,’ but
they have had different priorities, and saving energy is not one of them.”
The Environmental Protection Agency has established Energy Star
standards<http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGr…>for
set-top boxes and has plans to tighten them significantly by 2013,
said
Ann Bailey, director of Energy Star product labeling, in an e-mail. The
voluntary seal indicates products that use energy efficiently. But today,
there are many boxes on the list of products that meet the Energy Star
standard<http://www.energystar.gov/ia/products/prod_lists/set_top_boxes_prod_list.pdf>that
do not offer an automatic standby or sleep mode.
“If you hit the on/off button it only dims the clock, it doesn’t
significantly reduce power use,” said Noah Horowitz, senior scientist at the
natural resources council.
Energy efficiency is a function of hardware, software, the cable network and
how a customer uses the service, said Robert Turner, an engineer at Pace,
which makes set-top boxes that can operate using less power while not in
active use.
Sometimes energy efficiency can be vastly improved by remotely adjusting
software over a cable, Mr. Turner said. In this way, Pace reduced the energy
consumption of some of its older boxes by half.
Cable boxes are not designed to be turned completely off, and even when in
deep sleep mode, it takes time to reconnect and “talk” with their cable or
satellite network, though that time is highly variable depending on the
technology.
Mr. Wilson said he routinely unplugged his set-top boxes at night and waited
only 45 seconds for television in the morning. But Dr. Meier said that when
he tried to power down his home system at night, it took “hours” to reboot
because the provider “downloaded the programming guide in a very inefficient
way.”
Cable providers and box manufacturers like Cisco Systems, Samsung and
Motorola currently do not feel consumer pressure to improve box efficiency.
Customers are generally unaware of the problem — they do not know to blame
the unobtrusive little device for the rise in their electricity bills, and
do not choose their boxes anyway.
Those devices may cause an increase of as little as a few dollars a month or
well over $10 for a home with many devices. In Europe, electricity rates are
often double those in the United States, providing greater financial
motivation to conserve.
Cisco Systems, one of the largest makers of set-top boxes, said in an e-mail
that they would offer some new models this year that would cut consumption
by 25 percent “through reduced power used in ‘on’ and standby states.” There
will be no deep sleep or fully “off” setting.
But Cisco said that taking advantage of the potential energy savings for a
box would also depend on “how it is operated by the service provider.” Cable
and satellite providers will have to decide whether the boxes can
automatically go to standby, for example, and whether customers will be able
to adjust their own settings. Currently, providers often do system
maintenance and download information at night over the cable, so an
ever-at-the ready cable box is more convenient for them.
Cable companies can become Energy Star “partners” if they agree to install
or upgrade boxes so that 25 percent to 50 percent of the homes they serve
have “energy star qualified” equipment. The E.P.A. merely encourages
providers to use units that can automatically power down at least partly
when not in use.
But as of Sept. 1, typical electricity consumption of Energy Star qualified
products would drop to 97 kilowatt hours a year from an average of 138; and
then by the middle of 2013, they must drop again to 29 kilowatt hours a
year. Companies have fought the placement of the “Energy Star” seal on
products and the new ambitious requirements, which may still be modified
before enacted.
Mr. Wilson recalled that when he was on the California Energy Commission, he
asked box makers why the hard drives were on all the time, using so much
power. The answer: “Nobody asked us to use less.”
The biggest challenge in reducing energy use is maintaining the rapid
response time now expected of home entertainment systems, Mr. Turner said.
“People are used to the idea that computers take some time to boot up,” he
said, “but they expect the TV to turn on instantly.”
--
William V. DePaulo, Esq.
179 Summers Street, Suite 232
Charleston, WV 25301-2163
Tel 304-342-5588
Fax 304-342-5505
william.depaulo(a)gmail.com
www.passeggiata.com
[View Less]
http://www.nytimes.com/2011/06/26/us/26gas.html?partner=rss&emc=rss&gwh=D91…
Drilling Down Insiders Sound an Alarm Amid a Natural Gas Rush
Jennifer Pitts/The Journal Record, via Associated Press, left; Mark
Peristein for The New York Times
“It's time to get bullish on natural gas," said Aubrey K. McClendon, left,
chief executive of Chesapeake Energy. "This could have profound consequences
for our local economy," said Deborah Rogers, a committee member at the
Federal Reserve Bank of …
[View More]Dallas.
By IAN URBINA<http://topics.nytimes.com/top/reference/timestopics/people/u/ian_urbina/ind…>
Published:
June 25, 2011
-
-
Natural gas companies have been placing enormous bets on the wells they
are drilling, saying they will deliver big profits and provide a vast new
source of energy for the United States.
Multimedia
Interactive Feature
<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>
Documents: Leaked Industry E-Mails and
Reports<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>
Graphic
Overestimating Natural Gas Production
Graphic
Sweet Spots, but Not Many
Drilling Down
*Natural Gas Investments*
Articles in this series will examine the risks of natural-gas drilling and
efforts to regulate this rapidly growing industry.
Complete Series
»<http://topics.nytimes.com/top/news/us/series/drilling_down/index.html>
Enlarge This Image
Brandon Thibodeaux for The New York Times
Ministers, pastors and deacons of Fort Worth churches. Dozens of black
churches in Fort Worth signed gas leases.
But the gas may not be as easy and cheap to extract from shale formations
deep underground as the companies are saying, according to hundreds of
industry e-mails and internal
documents<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>and
an analysis of data from thousands of wells.
In the e-mails, energy executives, industry lawyers, state geologists and
market analysts voice skepticism about lofty forecasts and question whether
companies are intentionally, and even illegally, overstating the
productivity of their wells and the size of their reserves. Many of these
e-mails also suggest a view that is in stark contrast to more bullish public
comments made by the industry, in much the same way that insiders have
raised doubts about previous financial bubbles.
“Money is pouring in” from investors even though shale gas is “inherently
unprofitable,” an analyst from PNC Wealth Management, an investment company,
wrote to a contractor in a February
e-mail<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>.
“Reminds you of dot-coms.”
“The word in the world of independents is that the shale plays are just
giant Ponzi schemes and the economics just do not work,” an analyst from IHS
Drilling Data, an energy research company, wrote in an e-mail on Aug. 28,
2009<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>.
Company data for more than 10,000 wells in three major shale gas formations
raise further questions about the industry’s prospects. There is undoubtedly
a vast amount of gas in the formations. The question remains how affordably
it can be extracted.
The data show that while there are some very active wells, they are often
surrounded by vast zones of less-productive wells that in some cases cost
more to drill and operate than the gas they produce is worth. Also, the
amount of gas produced by many of the successful wells is falling much
faster than initially predicted by energy companies, making it more
difficult for them to turn a profit over the long run.
If the industry does not live up to expectations, the impact will be felt
widely. Federal and state lawmakers are considering drastically increasing
subsidies for the natural gas business in the hope that it will provide
low-cost energy for decades to come.
But if natural gas ultimately proves more expensive to extract from the
ground than has been predicted, landowners, investors and lenders could see
their investments falter, while consumers will pay a price in higher
electricity and home heating bills.
There are implications for the environment, too. The technology used to get
gas flowing out of the ground — called hydraulic fracturing, or
hydrofracking — can require over a million gallons of water per well, and
some of that water must be disposed of because it becomes contaminated by
the process. If shale gas wells fade faster than expected, energy companies
will have to drill more wells or hydrofrack them more often, resulting in
more toxic waste.
The e-mails were obtained through open-records requests or provided to The
New York Times by industry consultants and analysts who say they believe
that the public perception of shale gas does not match reality; names and
identifying information were redacted to protect these people, who were not
authorized to communicate publicly. In the e-mails, some people within the
industry voice grave concerns.
“And now these corporate giants are having an Enron moment,” a retired
geologist from a major oil and gas company wrote in a February
e-mail<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>about
other companies invested in shale gas. “They want to bend light to
hide the truth.”
Others within the industry remain optimistic. They argue that shale gas
economics will improve as the price of gas rises, technology evolves and
demand for gas grows with help from increased federal subsidies being
considered by Congress. “Shale gas supply is only going to increase,” Steven
C. Dixon, executive vice president of Chesapeake Energy, said at an energy
industry conference in April in response to skepticism about well
performance.
*Studying the Data*
“I think we have a big problem.”
Deborah Rogers, a member of the advisory committee of the Federal Reserve
Bank of Dallas, recalled saying that in a May 2010 telephone call to a
senior economist at the Reserve, Mine K. Yucel. “We need to take a close
look at this right away,” she added.
A former stockbroker with Merrill Lynch, Ms. Rogers said she started
studying well data from shale companies in October 2009 after attending a
speech by the chief executive of Chesapeake, Aubrey K. McClendon. The math
was not adding up, Ms. Rogers said. Her research showed that wells were
petering out faster than expected.
“These wells are depleting so quickly that the operators are in an expensive
game of ‘catch-up,’ ” Ms. Rogers wrote in an e-mail on Nov. 17, 2009, to a
petroleum geologist in Houston, who wrote back that he agreed.
“This could have profound consequences for our local economy,” she explained
in the e-mail.
Fort Worth residents were already reeling from the sudden reversal of
fortune for the natural gas industry.
In early 2008, energy companies were scrambling in Fort Worth to get
residents to lease their land for drilling as they searched for so-called
monster wells. Billboards along the highways stoked the boom-time
excitement: “If you don’t have a gas lease, get one!” Oil and gas companies
were in a fierce bidding war for drilling rights, offering people bonuses as
high as $27,500 per acre for signing leases.
The actor Tommy Lee Jones signed on as a pitchman for Chesapeake, one of the
largest shale gas companies. “The extremely long-term benefits include new
jobs and capital investment and royalties and revenues that pay for public
roads, schools and parks,” he said in one television advertisement about
drilling in the Barnett shale in and around Fort Worth.
To investors, shale companies had a more sophisticated
pitch<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>.
With better technology, they had refined a “manufacturing model,” they said,
that would allow them to drop a well virtually anywhere in certain parts of
a shale formation and expect long-lasting returns.
For Wall Street, this was the holy grail: a low-risk and high-profit
proposition. But by late 2008, the recession took hold and the price of
natural gas plunged<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>by
nearly two-thirds, throwing the drilling companies’ business model
into a
tailspin.
In Texas, the advertisements featuring Mr. Jones disappeared. Energy
companies rescinded high-priced lease offers to thousands of residents,
which prompted class-action lawsuits. Royalty checks dwindled. Tax receipts
fell.
The impact of the downturn was immediate for many.
“Ruinous, that’s how I’d describe it,” said the Rev. Kyev Tatum, president
of the Fort Worth chapter of the Southern Christian Leadership Conference.
Mr. Tatum explained that dozens of black churches in Fort Worth signed
leases on the promise of big money. Instead, some churches were told that
their land may no longer be tax exempt even though they had yet to make any
royalties on the wells, he said.
That boom-and-bust volatility had raised eyebrows among people like Ms.
Rogers, as well as energy analysts and geologists, who started looking
closely at the data on wells’ performance.* *
In May 2010, the Federal Reserve Bank of Dallas called a meeting to discuss
the matter after prodding from Ms. Rogers. One speaker was Kenneth B.
Medlock III, an energy expert at Rice University, who described a promising
future for the shale gas industry in the United States. When he was done,
Ms. Rogers peppered him with questions.
Might growing environmental concerns raise the cost of doing business? If
wells were dying off faster than predicted, how many new wells would need to
be drilled to meet projections?
Mr. Medlock conceded that production in the Barnett shale formation — or
“play,” in industry jargon — was indeed flat and would probably soon
decline.
“Activity will shift toward other plays because the returns there are
higher,” he predicted. Ms. Rogers turned to the other commissioners to see
if they shared her skepticism, but she said she saw only blank stares.
*Bubbling Doubts*
Some doubts about the industry are being raised by people who work inside
energy companies, too.
“Our engineers here project these wells out to 20-30 years of production and
in my mind that has yet to be proven as viable,” wrote a geologist at
Chesapeake in a March 17
e-mail<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>to
a federal energy analyst. “In fact I’m quite skeptical of it myself
when
you see the % decline in the first year of production.”
“In these shale gas plays no well is really economic right now,” the
geologist said in a previous e-mail to the same official on March
16<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>.
“They are all losing a little money or only making a little bit of money.”
Around the same time the geologist sent the e-mail, Mr. McClendon,
Chesapeake’s chief executive, told investors, “It’s time to get bullish on
natural gas.”
In September 2009, a geologist from ConocoPhillips, one of the largest
producers of natural gas in the Barnett shale, warned in an e-mail to a
colleague<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>that
shale gas might end up as “the world’s largest uneconomic field.”
About
six months later, the company’s chief executive, James J. Mulva, described
natural gas as “nature’s gift,” adding that “rather than being expensive,
shale gas is often the low-cost source.” Asked about the e-mail, John C.
Roper, a spokesman for ConocoPhillips, said he absolutely believed that
shale gas is economically viable.
A big attraction for investors is the increasing size of the gas reserves
that some companies are reporting. Reserves — in effect, the amount of gas
that a company says it can feasibly access from its wells — are important
because they are a central measure of an oil and gas company’s value.
Forecasting these reserves is a tricky science. Early predictions are
sometimes lowered because of drops in gas prices, as happened in 2008.
Intentionally overbooking reserves, however, is illegal because it misleads
investors. Industry e-mails, mostly from 2009 and later, include language
from oil and gas executives questioning whether other energy companies are
doing just that.
The e-mails do not explicitly accuse any companies of breaking the law. But
the number of e-mails, the seniority of the people writing them, the variety
of positions they hold and the language they use — including comparisons to
Ponzi schemes and attempts to “con” Wall Street — suggest that questions
about the shale gas industry exist in many corners.
“Do you think that there may be something suspicious going with the public
companies in regard to booking shale reserves?” a senior official from Ivy
Energy, an investment firm specializing in the energy sector, wrote in
a2009 e-mail<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>.
A former Enron executive wrote in
2009<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>while
working at an energy company: “I wonder when they will start telling
people these wells are just not what they thought they were going to be?” He
added that the behavior of shale gas companies reminded him of what he saw
when he worked at Enron.
Production data, provided by companies to state regulators and reviewed by
The Times, show that many wells are not performing as the industry expected.
In three major shale formations — the Barnett in Texas, the Haynesville in
East Texas and Louisiana and the Fayetteville, across Arkansas — less than
20 percent of the area heralded by companies as productive is emerging as
likely to be profitable under current market conditions, according to the
data and industry analysts.
Richard K. Stoneburner, president and chief operating officer of Petrohawk
Energy, said that looking at entire shale formations was misleading because
some companies drilled only in the best areas or had lower costs. “Outside
those areas, you can drill a lot of wells that will never live up to
expectations,” he added.
Although energy companies routinely project that shale gas wells will
produce gas at a reasonable rate for anywhere from 20 to 65 years, these
companies have been making such predictions based on limited data and a
certain amount of guesswork, since shale drilling is a relatively new
practice.
Most gas companies claim that production will drop sharply after the first
few years but then level off, allowing most wells to produce gas for
decades.
Gas production data reviewed by The Times suggest that many wells in shale
gas fields do not level off the way many companies predict but instead
decline steadily.
“This kind of data is making it harder and harder to deny that the shale gas
revolution is being oversold,” said Art Berman, a Houston-based geologist
who worked for two decades at Amoco and has been one of the most vocal
skeptics of shale gas economics.
The Barnett shale, which has the longest production history, provides the
most reliable case study for predicting future shale gas potential. The data
suggest that if the wells’ production continues to decline in the current
manner, many will become financially unviable within 10 to 15 years.
A review of more than 9,000 wells, using data from 2003 to 2009, shows that
— based on widely used industry assumptions about the market price of gas
and the cost of drilling and operating a well — less than 10 percent of the
wells had recouped their estimated costs by the time they were seven years
old.
Terry Engelder, a professor of geosciences at Pennsylvania State University,
said the debate over long-term well performance was far from resolved. The
Haynesville shale has not lived up to early expectations, he said, but
industry projections have become more accurate and some wells in the
Marcellus shale, which stretches from Virginia to New York, are
outperforming expectations.
*A Sense of Confidence*
Many people within the industry remain confident.
“I wouldn’t worry about these shale companies,” said T. Boone Pickens, the
oil and gas industry executive, adding that he believes that if prices rise,
shale gas companies will make good money.
Mr. Pickens said that technological improvements — including hydrofracking
wells more than once — are already making production more cost-effective,
which is why some major companies like ExxonMobil have recently bought into
shale gas.
Shale companies are also adjusting their strategies to make money by
focusing on shale wells that produce lucrative liquids, like propane and
butane, in addition to natural gas.
Asked about the e-mails from the Chesapeake geologist casting doubt on
company projections, a Chesapeake spokesman, Jim Gipson, said the company
was fully confident that a majority of wells would be productive for 30
years or more.
David Pendery, a spokesman for IHS, added that though shale gas prospects
had previously been debated by many analysts, in more recent years costs had
fallen and technology had improved.
Still, in private exchanges, many industry insiders are skeptical, even
cynical, about the industry’s pronouncements. “All about making money,” an
official from Schlumberger, an oil and gas services company, wrote in
aJuly 2010 e-mail<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>to
a former federal regulator about drilling a well in Europe, where some
United States shale companies are hunting for better market opportunities.
“Looks like crap,” the Schlumberger official wrote about the well’s
performance, according to the regulator, “but operator will flip it based on
‘potential’ and make some money on it.”
“Always a greater sucker,” the
e-mail<http://www.nytimes.com/interactive/us/natural-gas-drilling-down-documents-4…>concluded.
Robbie Brown contributed reporting from Atlanta.
A version of this article appeared in print on June 26, 2011, on page
A1 of the New York edition with the headline: Insiders Sound an Alarm Amid a
Natural Gas Rush.
--
William V. DePaulo, Esq.
179 Summers Street, Suite 232
Charleston, WV 25301-2163
Tel 304-342-5588
Fax 304-342-5505
william.depaulo(a)gmail.com
www.passeggiata.com
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[image: The New York Times]
June 14, 2011
A Green Solution, or the Dark Side to Cleaner Coal? By KEITH
BRADSHER<http://topics.nytimes.com/top/reference/timestopics/people/b/keith_bradsher…>
LIANYUNGANG, CHINA — The six massive silos standing beside this industrial
port in northeastern China hold seemingly contradictory promises: They could
help improve the quality of China’s polluted air, but they might also
contribute to faster global
warming<http://topics.nytimes.com/top/news/…
[View More]science/topics/globalwarming/index.html?…>.
The silos, which are scheduled to start operation in July, are designed to
blend cleaner-burning imported
coal<http://topics.nytimes.com/top/reference/timestopics/subjects/c/coal/index.h…>with
China’s own high-polluting domestic coal, which is contaminated with
sulfur and dust.
Coal blending will produce a mixture that will help electric utilities meet
China’s steadily tightening environmental regulations. It will also increase
the efficiency of coal-fired plants by slightly reducing the quantity of
coal needed. Burning less coal means less greenhouse gases emitted.
But critics argue there is a darker side to cleaner coal.
“Anything that makes coal more cost effective, like blending, which is only
enabling China to burn more coal, is bad news for the global struggle
against carbon emissions,” said Orville Schell, the Arthur Ross director of
the Center on U.S.-China Relations at the Asia Society in New York.
The Chinese government’s decision this month to import more coal in order to
lessen power outages — and control rising coal prices — ensures that
blending will increase rapidly.
Industry executives are quick to tout the practice’s environmental benefits.
Blending “is a sound solution to reducing greenhouse gas and pollutants
emissions from coal-fired power plants,” said Howard Au, the director and
chairman of Petrocom Energy Ltd., which owns the blending facility here.
But environmentalists worry that by reducing the amount of sulfur and dust
emitted from burning coal, blending makes coal more acceptable in the
short-term and stalls the conversion to cleaner or renewable fuels. They say
coal blending strengthens the case for companies — and countries — that want
to continue to rely on coal for decades.
“Does it help with acid rain? Yes,” said Allen Hershkowitz, a specialist in
Appalachian coal fields at the Natural Resources Defense Council, an
environmental group based in New York. “It hurts us when it comes to global
warming.”
Coal remains a particularly dirty form of electricity generation when it
comes to producing climate-changing gases.
The global warming calculus for coal blending is less clear. Blending makes
it easier to feed a power plant with exactly the right coal mixture at which
its boilers work most efficiently. This means the plant can burn less coal
and emit less greenhouse gas. How much less — and how does that improvement
compare with switching to other fuels — varies a lot depending on the power
plant and the coal it burns without blending. Better operating efficiency at
the power plant helps offset the cost of blending, which can add up to 4
percent to the price tag of the coal.
China does not just have an ancient civilization, it also has a lot of very
old coal. Much of it has been tightly compressed over millions of years.
That has pluses and minuses.
Chinese coal releases a lot of heat when burned and has very little moisture
left, two very desirable features, according to coal traders. But Chinese
coal deposits also contain a lot of sulfur as well as so-called fly ash —
dust that is not combustible and contributes to particulate air pollution.
China also has some deposits of young coal which has fairly low heat content
and requires blending before it can be burned.
China has the third-largest coal reserves, after the United States and
Russia, and consumes more coal than any other country. It accounted for
nearly half the 7.3 billion metric tons burned around the world last year.
Four-fifths of China’s reserves, however, do not comply with the country’s
standards for industrial use, according to the government-run China Coal
Research Institute. Complicating matters, the China’s environmental
regulators have signaled plans to reduce further the allowable levels of
sulfur.
China led the world last year in clean energy investments, with $54.4
billion, according to a study by the Pew Charitable Trusts. But coal is
still China’s dominant energy source, accounting for 73 percent of
electricity capacity.
Because coal-fired plants run day and night — while alternatives like wind
turbines<http://topics.nytimes.com/top/reference/timestopics/subjects/w/wind_power/i…>and
hydroelectric<http://topics.nytimes.com/top/reference/timestopics/subjects/h/hydroelectri…>dams
only run when enough wind or water is available — coal accounted for
83
percent of electricity generation last year.
China has led the world in recent years in the construction of
high-efficiency coal-fired power plants. These plants heat water to higher
temperatures and pressures than earlier designs, so that less coal is burned
to produce the same kilowatt-hours of electricity. But the newer power
plants need coal of a precise makeup, making it even harder for China to
rely exclusively on domestic coal fields.
To meet the needs of the new plants, China has gone on a twin binge of
importing coal and buying coal mines abroad. Wood Mackenzie, the global
energy consulting company, predicts that Indonesia will be the world’s
fastest-growing exporter of coal in the next five years because of Chinese
demand.
While coal blending facilities may provide a short-term environmental
benefit, they also make it possible for countries like China to plan on
consuming a lot more coal for decades into the future.
People have been blending coal for more than a century, often in
surprisingly simple ways. Richard Elman, the chairman of the Noble Group,
one of the world’s largest commodity companies, is skeptical of newer
blending technologies. He says bulldozers have been roughly mixing different
grades of coal at power plants and mines for years.
A single coal mine may have different qualities of coal in different seams,
and will often stir them together with bulldozers before shipment so as to
provide a mixture that better meets the customer’s specifications, he said.
In the United States, big engineering companies like Bechtel and the Roberts
& Schaefer subsidiary of KBR have been designing elaborate systems of
conveyer belts that take coal arriving by rail and barge and distribute it
to various stockpiles, blending it along the way.
The most elaborate approach, developed in Europe and put into effect here,
is to build a series of silos, each containing a different grade of coal. A
large conveyor belt and scales are mounted underneath the silos. Coal from
each silo is sprinkled onto the conveyor belt, then the mixture is dropped
into rail cars, ships or a storage yard.
“It’s not easy for this new technology to be accepted, so I’m using my
network because I believe this would be good for the country,” said Li
Anqing, the retired top administrator of Lianyungang’s big coal port, who is
now the general manager of the operation here.
Bob Williams Jr., the vice president for sales and marketing at Roberts &
Schaefer, said that using specially built silos for blending coal is an
unusually expensive approach, and would barely be considered except at large
coal ports. But Mr. Au said that the blending cost per ton using silos,
about $5, had not changed for the last several years.
By contrast, coal prices have doubled in the past five years, to $130 a ton
in China for coal with high heat content. So blending costs have halved as a
percentage of the overall cost of coal. That reduction in relative costs,
combined with tighter regulations in China aimed at reducing acid rain, have
increased its attractiveness.
“Blending didn’t make sense prior to 2003 as prices of coal were low,” Mr.
Au said. But now, Petrocom is making plans for dozens of coal-blending
facilities in China, to accommodate a flood of imports that could last for
decades.
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