The Daily Digger

UPDATE:  The Free Press Standard has also posted an article about this situation.   Read the entire article here , but this is an excerpt: The decision to lease village owned property has been a treacherous path. Council members held special meetings to discuss options and have voiced fears of contamination to the water fields. Council quickly passed a restrictive ordinance regarding adult cabarets within village limits and has had residents speak of man-camps and excessive traffic. Original report: From the Times Reporter: An offer by Chesapeake Energy Corp. for oil and gas drilling rights on property owned by the village has been taken off the table.  The Oklahoma-based company in April had offered the village $5,800 per acre with an additional income of 20 percent of the gross for oil and gas rights for 275 acres of village property.  However, Finance Committee Chairman Don Locke told village council members Tuesday that the offer no longer was availa...

UPDATE:  Energy in Depth has posted an article about this conference, with video of Glenn Enslen speaking about the impact of shale drilling in Carroll County.   View the article here .  The videos can be seen below. Original article from 5/24/12:

Use renewables as much as we can. Natural  gas  is the next-cleanest fuel, then we have oil and then we have coal… We’re trying to make sure that we innovatively and creatively use whatever fuel we burn (and) that we rely primarily on the fuels that are the cleanest… And, among the fossil fuels, natural gas is at the top. Those are the words of former Sierra Club executive director Carl Pope in 2008, back when the Sierra Club supported natural gas as an alternative energy source.  In fact, the Sierra Club accepted more than $25 million from Chesapeake Energy back in those days to help fund the Club's Beyond Coal campaign. Nowadays the Sierra Club is singing a different tune.  In fact, they have organized a "Beyond Natural Gas" campaign which they clearly hope will push natural gas companies to the brink of extinction in the same way that nuclear power and the coal industry have been impacted by similar Sierra Club efforts in the past. Why the shift in agenda...

Josh Fox, Mark Ruffalo, and other fracktivists are preparing to converge on Ohio in an attempt to stop fracking in the state.  They invite others who share their fears over fracking to join them in their protest: Dear friends–The fracking industry has been causing earthquakes in Ohio. So it’s time we caused one of our own.  No, not a 4.0-on-the-Richter-scale temblor like the one that shook Youngstown on New Year’s Eve. Instead, we need to aim for an 8.0 on the political scale–we need to shake Columbus with the biggest anti-fracking gathering yet seen in the U.S.Save these dates: June 14-17, in Columbus.  The 14-16th will be dedicated to training and movement building, and on the 17th we’ll be taking over the Ohio statehouse for a people’s assembly that will ‘pass’ legislation that Ohioans need to stop this destructive practice. You can sign up here, but we need you to do more–please spread the word to friends and colleagues. And get ready for the caravan that will...

From Chesapeake: The Environmental Protection Agency (EPA) is currently conducting a national study to determine if hydraulic fracturing has any impact on drinking water sources. As part of a larger study, the EPA is conducting five focused retrospective studies in separate areas across the country including Bradford County, Pennsylvania.  Samples were taken in Bradford County during the study’s first round of sampling in October and November 2011. In a collaborative effort, Chesapeake Energy Corporation consultants collected split samples with the EPA from 15 individual drinking water sources for analysis by accredited laboratories. Chesapeake then commissioned WESTON Solutions, Inc. to critically evaluate the results and compare them with more than 4,000 historic and baseline groundwater samples in the area. Approximately 310 of these samples came from the United States Geologic Survey’s public databases and predate any Marcellus Shale natural gas development activity in the ...

From Businessweek: Chesapeake Energy Corp. (CHK) ( CHK ) ’s depressed valuation is making the company a potential target for acquirers willing to bet that natural-gas prices will rebound from a decade low.  Chesapeake’s equity and net debt are valued at $9.19 for each barrel of oil equivalent, the lowest among U.S. oil and gas explorers with market capitalizations greater than $5 billion, according to data compiled by Bloomberg. While a stock purchase by Carl Icahn helped the $11 billion company’s shares rebound in the past week, Chesapeake is still down  27 percent ( CHK )  in 2012 amid investigations into Chief Executive Officer Aubrey McClendon’s personal loans backed by stakes in company-operated wells.  The second-largest U.S. natural-gas producer said it may face a cash shortfall as early as next year after prices for natural gas, which accounts for  83 percent ( CHK )  of its reserves, reached a 10-year low last month. While a buyer would hav...

From Yahoo: Rex Energy said it has completed drilling its first Ohio Utica well, the Brace #1H, located in Carroll County. The well encountered approximately 135 feet of Point Pleasant formation and approximately143 feet of overlying Utica Shale formation. The vertical hole was plugged back and the well was drilled to a total measured depth of 12,332 feet with a lateral length of approximately 4,170 feet. Fracture stimulation is currently scheduled for June.  Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

As we reported recently , investor Carl Icahn has taken a significant stake in Chesapeake.  Reports say that he is now the third-largest Chesapeake shareholder. On Friday, Icahn let Chesapeake know what was on his mind: May 25, 2012  Ladies and Gentlemen:  The past several weeks have proved a difficult time for shareholders of Chesapeake Energy. The basic function of a board is to oversee management and to hold it accountable. We believe the board has failed this duty in a dramatic fashion. Rather than act as a source of stability and provide assurance to shareholders, this board has led the company through a highly publicized spate of corporate governance breakdowns while amassing an astounding $16 billion funding gap, which we believe has contributed to the share price decline of over 55% from the 52-week high.  We are not alone in criticizing this board. Shareholders have filed lawsuits, withhold campaigns and have otherwise voiced disapproval and all th...

From Energy in Depth: If  Orson Welles and  War of the Worlds  taught us anything, it is that Americans have a love affair with the mysteries of the unknown.  Generating hysteria regarding the unfamiliar just isn’t that difficult because we’re all vulnerable.  It is, in fact, one of our favorite pastimes and even basic science such as hydraulic fracturing, that’s been around for 60 years, can serve as the fodder for fear mongering when people are unaware of the basic facts.  I’m sure cave men somehow communicated to their young their own fears of what was beyond beyond the cave entrance. That was wise back then, as we were not necessarily the top of the food chain. Our primordial ancestors probably used hand gestures, a primitive language of grunts and groans and crude wall paintings to instill a proper fear of the outside world.   Plato even wrote about this .  Today, thousands of years later, we see the same tactics. Why? ...

Rumors and rumblings are being heard from various directions that the shale boom in Carroll County is slowing to a crawl.  Why did Select Energy pull out of the Commerce Park project and head to Tuscarawas County?  Is Rex Energy abandoning the area?  Will Chesapeake's money problems cause them to pull back?  Are all of the workers gradually leaving?  What does it mean for the area? The statements from Chesapeake and what we can see with our own eyes don't seem to completely mesh up.  What are you hearing and seeing as far as the drilling activity is concerned?  Share your observations and thoughts in the comments! Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

We've previously referenced the report by the University at Buffalo which looked at the environmental impact of shale development both here and here . Now, the latest from the Washington Times: Faced with mounting criticism, the  State University of New York  at Buffalo is distancing itself from a Marcellus  Shale  gas-drilling study released earlier this month by the school’s own  Shale Resources  and Society Institute.  But the report’s lead author is defending the work by the fledgling institute, saying Monday that it’s being mischaracterized by environmental activists who oppose any additional domestic fossil-fuel production.  “I stand by the work,” said  Timothy Considine ,  University of Wyoming  professor and one of three researchers who penned the institute’s survey, adding that he and his colleagues aren’t at all surprised by the green backlash it has generated.  “This whole debate [about fracking] has been ...

From the Toledo Blade: State Rep. Bob Hagan, a Youngstown Democrat, compared Ohio's fracking legislation to a "runaway locomotive." He was one of several House members who tried unsuccessfully to stop the bill approved by state lawmakers this week.  Many Ohioans are ambivalent about that speeding train and about how the rush by state leaders to accommodate oil and gas drillers could come at the public's expense. General awareness of the oil industry's accelerated interest in Ohio's natural resources is limited to what is projected about new jobs and economic revival.  That's how big money, behind the move to drill in areas of the state rich in Utica and Marcellus shale, effectively framed the fracking issue to Ohioans. The ploy worked brilliantly.  With voters fixated on the economy, politicians who might otherwise balk at the audacious demands of drillers -- no severance tax, guarded disclosure of drilling fluids, no citizen appeal of drilling p...

From Energy in Depth: As we arrived at Carter Road I had an excited feeling. This is it. I finally get to see what all the hype has been about, i told myself.  I prepared for the worst because, where I’m from Dimock and the term “wasteland” tend to be synonymous. While I knew much of what I had read in the news had already been refuted by science and water testing, I think I still expected to see some hint of truth on that famous stretch of road. I was happy to learn there was none.  As I passed the  Sautner’s  house all I could see were dozens of anti natural gas signs,  dirty looks shot my way  and reporters. This was the only hint of discontent; the only marring of a sleepy road that has been given an undo spotlight by the world.  One of these signs (see below) especially caught my eye. It was a “For Sale” sign on the Sautner property in the amount of $5,000,000! I’ve heard stories of price gouging in the media, but that about takes the cake....

From The Newark Advocate: This April, I went with a group to Carroll County, the new hot spot for deep shale drilling here in Ohio. Currently, there are about 20 wells. Soon, there will be thousands. Here's what we saw and were told:  » Large pipeline clearings lace the countryside, 4 to 5 acre well pads grace the hilltops and huge semis stream through downtown Carrollton.  » Most gas-oil taxes go to the state with little staying locally.  » We were told, "Companies are always pushing the envelope." Gas-oil companies are moving so fast, it's hard for local officials to make wise decisions.  » The Ohio Department of Natural Resources is not addressing community concerns about drilling in wetlands, headwaters and water protection areas.  » No one seemed to know who would pay for a major community disaster if one were to occur.  » Skilled workers needed by local businesses are taking jobs as truck drivers and security guards.  » Rents hav...

Mark Ruffalo is planning on leading the charge at an anti-fracking rally in Columbus on June 17.  Here is what EcoWatch has to say: Mark Ruffalo is someone worth listening to—and not just because he’s known to occasionally turn into a giant green rage-monster.  He’s also deeply involved in the growing national movement against the dangerous gas drilling technique hydrofracking (AKA fracking)—a fight he’s taking to Ohio. The organization he helped found, Water Defense, is joining us in supporting a big action against fracking called Don’t Frack Ohio, which is happening in the statehouse in Columbus on June 17.  Mark just recorded this great video to invite you to join the action because Ohio is a critical state to make a stand—Gov. John Kasich is putting together an energy plan that would gag doctors from talking about fracking related illness, while imposing fewer taxes and creating bigger safety loopholes than just about any other state in the nation. Shutting d...

Time is very limited for the blog today as we work on completing the Carroll County Energy News for June.  But here are links to several oil and gas stories to help you stay up to date. Chesapeake prepares to sell 500,000 acres. The reasons for Chesapeake's problems with shareholders are partially on display in the NBA Playoffs. Why are investors scrambling to sell their Chesapeake stock? Energy in Depth disputes recent reports regarding the safety hazards for oil and gas truckers. Oil and gas workers have children too - an industry worker takes offense at those who demonize the industry for seeking leases in the area of schools. Free Press Standard updates their article on Select Energy with some focus on the McJunkin Redman Corporation's plans to build in the Carroll County Commerce Park. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

The Daily Digger returned to the Gallo Road drilling site in Carrollton to see how things looked compared to the video we took on March 19th .  While you can't get very close or see very much of what is actually going on from the road, here are some pics of what the site looks like now.

Activist groups not happy to be legally neutered The new bill that is progressing through the Ohio House would bring some pretty strict regulations to the oil and gas industry.  One might think that environmental groups would like the bill because of that. Yet, groups such as the Ohio Environmental Council and the Sierra Club are opposing the bill because of a provision regulating who has the right to sue the oil and gas industry for withholding chemical trade secrets. From the Times Bulletin : Jack Shaner of the Ohio Environmental Council said the provision establishing who has standing to sue over trade secrets would make it virtually impossible for most Ohioans to file legal action.  "Virtually impossible for most Ohioans to file legal action."  Is that accurate? Another quote from the same article (italics ours): Under the contested provision, those eligible to sue companies that withhold chemical trade secrets would include property owners, adjacent ne...

From the Cleveland Plain Dealer: Ohio lawmakers moved ahead despite opposition Wednesday with a controversial bill to regulate shale gas production and tinker with renewable energy rules.  The House Public Utilities Committee voted to approve the measure nearly intact as it arrived from the Senate despite hearing a full day of testimony -- and more than 25 amendments -- from environmental groups warning the new law would not go far enough.  The bill is expected to easily win approval in the House Thursday in a largely partisan vote as lawmakers race to adjourn before Memorial Day.  Still missing from the proposal are provisions that would require complete disclosure of all chemicals used during drilling and hydraulic fracturing of shale rock to free natural gas and oil.  That's what Gov. John Kasich wanted, but lawmakers in the Senate last week eliminated disclosure of drilling lubricants once the well is below the local water table but still thousands of...

From Business Wire : Chesapeake Energy Corporation Releases Letter to Shareholders Board of Directors Outlines Numerous Actions Taken to Enhance Corporate Governance OKLAHOMA CITY--( BUSINESS WIRE )--The Board of Directors of Chesapeake Energy Corporation (NYSE:CHK) today released a letter to shareholders addressing certain issues recently raised by the Comptroller of the City of New York, John C. Liu, who oversees New York City pension funds that beneficially own less than 0.25% of Chesapeake’s common shares outstanding. The letter, which outlines numerous recent actions the Board has taken to enhance Chesapeake’s corporate governance and further strengthen its financial position, was issued in advance of the Company’s Annual Meeting of Shareholders to be held Friday, June 8, 2012. The full text of the letter follows: May 23, 2012 Dear Fellow Shareholder: You may have recently seen a letter from the Comptroller of the City of New York, John C. Liu, who oversees Ne...

From the Times Leader: North Township Trustee Danny Henry attended the Harrison County Board of Commissioners Wednesday, stating that he had been authorized by Utica East Ohio Midstream to officially announce that the company will build the Harrison hub facility on Ohio 151, just northwest of Scio.  Chesapeake Energy Corp. last week announced the execution of definitive agreements to build the largest integrated midstream service complex in eastern Ohio. Chesapeake, through affiliates of its wholly owned subsidiary, Chesapeake Midstream Development, L.P., has entered into a partnership with M3 Midstream LLC and EV Energy Partners, L.P. to develop the midstream services complex.  The complex will provide necessary infrastructure to process natural gas and natural gas liquids (NGL) in the liquids-rich Utica Shale play in eastern Ohio. The complex will consist of natural gas gathering and compression facilities constructed and operated by CMD, as well as processing, NGL fra...

From Seeking Alpha: The  price of natural gas  continues to recover: The short-term future price has reached its highest level since the end of January 2012. This price hike in natural gas is also reflected in the spike in United States Natural Gas ( UNG ). Will this rise in natural gas help curb the fall of Chesapeake Energy ( CHK )?  Chesapeake has been on the news lately, mainly due to the downgrade in the company's stock following the $4 billion short-term loan the company had taken at an 8.5% rate to stay afloat.  During April and May, the  price of natural gas  bounced back from its tumble during the first quarter of the year. During May, the Henry Hub short-term future increased by 15.8% and the price of United States Natural Gas rose by 17%. The  natural gas storage levels  are still high (the natural gas weekly update will be published by EIA tomorrow), even though the injections are below last year's injections; I still  think...

University says "peer-reviewed" label was misleading We previously referenced a University at Buffalo study that suggested environmental problems in the PA Marcellus Shale "were isolated, mostly minor, and on decline." Now the university has removed the label "peer-reviewed" from the study. From WGRZ Channel 2: The University at Buffalo has removed the "peer-reviewed" label from a document touting a recent study on natural-gas drilling and hydraulic fracturing, acknowledging that it may have given an "incorrect impression."  Last week, the UB Shale Resources and Society Institute released its first study, which analyzed more than three years of regulatory violations in Pennsylvania's portion of the gas-rich Marcellus Shale formation. The authors concluded the number of environmental fouls compared to the total number of wells drilled dropped from 58.2 percent in 2008 to 30.5 percent in 2010.  Originally, the universi...

From the Canton Repository: The Utica shale is the most talked-about segment of Ohio’s energy future, but it’s just part of the puzzle, one expert told a Walsh University crowd Wednesday night.  As dozens of energy companies try to reap the benefits of oil and natural gas trapped 6,500 feet underground within the Utica shale, farmers on the surface are looking at plants that will be used as biomass for energy generation in the future, said Dale Arnold, director of energy utility and local government policy for the Ohio Farm Bureau Federation.  “They won’t be growing corn and beans,” Arnold said. Those plants don’t have the complicated hydrocarbons that companies are looking for to replace coal and natural gas as fuels burned to generate electricity.  But biomass and shale oil are just some of the many options being considered as planners ponder the energy future, Arnold said. Energy demand will increase in the future. Arnold said there is no silver bullet to so...

UPDATES: Baker opens new office in Canton to serve oil and gas industry in the area. Learn about the history of shale gas development. Columbiana County Port Authority leases land to Chesapeake. Ohio State Medical Association doesn't agree with provision protecting fracking chemical disclosure. PA man appeals DEP's ruling that well water was not contaminated by gas drilling. Connect with us on Facebook and Twitter! Follow @EnergyNewsBlog

From Wealth Daily: Earlier this month, the U.S. Environmental Protection Agency said drinking water is safe to consume in a small Pennsylvania town that has attracted national attention after residents complained about hydraulic fracturing for natural gas.   The EPA recently completed testing water at 61 homes in Dimock, Pennsylvania, in the Marcellus Shale region, where residents have complained since 2009 of cloudy, foul-smelling water.   Dimock became popular after amateur film-maker Josh Fox released the documentary  Gasland , which highlights footage of residents who were able to light their tap water on fire just by holding a flame next to a running spigot.   It should be noted that methane has been found seeping to the surface in parts of the Marcellus Shale in Pennsylvania since the late 1790s.   According to historical records of Susquehanna County, Pennsylvania:   Early reports from those who settled the area indicate that plenty o...

From the Cleveland Plain Dealer: An invisible line traces a 25,000-acre oval in the hills of Columbiana County that separates the haves from the have-nots.  Outside the line are instantly wealthy corn, soybean and dairy farmers. Inside are folks waiting for their windfall.  Dozens of the landowners are blocked from cashing in on energy-rich shale below their property because of an underground gas storage field between the more than mile-deep shale and their pastures.  Many of the farmers were surprised to learn that their acres sit on top of a sandstone repository called the Brinker Storage Field that is leased by  Columbia Gas Transmission. Jill McNicol, a veterinarian, and her husband Patrick, a high school math teacher, didn't know about the storage field when  Oklahoma City-based Chesapeake Energy  swept through Columbiana County in the summer of 2010. The energy giant moved at lightning speed, nailing down as much promising shal...