What Does the US Energy Information Agency (EIA) New Marcellus Shale Gas Estimate Mean for NY?

When the USGS published a drastically reduced estimate of undiscovered but technically recoverable gas in the Marcellus Shale, the EIA said it would adjust its figures.  It has done so, as reported in Upstream Online :

In its 2012 Annual Energy Outlook, released on Monday, the EIA puts the amount of unproved technically recoverable shale gas resources in the US at 482 trillion cubic feet, almost 42% less than its estimate of 827 Tcf a year ago.

“The decline largely reflects a decrease in the estimate for the Marcellus shale, from 410 trillion cubic feet to 141 trillion cubic feet,” the agency said in an early overview of it annual projection of energy markets through 2035.

The assessment of Marcellus resources was made with more comprehensive well data available due to the vast number of wells drilled in the past couple of years.

Despite the lower projections of available gas, the agency still expects US gas production to increase, keeping prices low.  As reported in the Pittsburgh Post-Gazzette :

The daily rate of Marcellus production doubled in 2011, but that development yielded new data giving what the department’s Energy Information Administration says is the truer — or at least latest — indication of how much recoverable gas awaits drillers signing leases in the region.

Despite the lower estimate, gas production in the United States is still expected to grow, lessening America’s dependence on energy imports and keeping natural gas prices at profit-busting lows.

Nationwide, shale gas production is expected to increase from 5 trillion cubic feet in 2010 to 13.6 trillion in 2035.

Gas is now trading around a decade-low $2.30 per thousand cubic feet, and the EIA expects it to remain below $5 through 2023.

That’s sorry news for drillers already trying to figure out how to justify rapid-fire drilling in a market that doesn’t promise quick profits.

The lower gas prices — coming at a time when oil values are rising — have led to major company portfolio changes in just the past week.

So, what do these changes mean for New York State?  One thing to keep in mind is that, with prices low, companies are expanding production in areas with “wet gas” (gas with other liquid petroleum products also present) rather than “dry gas”– what is expected to be available in New York State.

Fracking Day of Action Planned for Monday, January 23 in Albany: Legislative Agenda

There is a Day of Action planned in Albany this coming Monday.

Here is a copy of the legislative agenda, as presented by Catskill Citizens for Safe Energy, one of the sponsoring groups:

ON TO ALBANY!

Next up?  A Hydrofracking Day of Action in Albany on Monday, January 23rd.   New Yorkers from every corner of the state will rally in the capital and meet with legislators to discuss the dangers posed by fracking.   Click here to find out about buses from your area and for help scheduling  appointments with Assembly Members, Senators and staff.

Registration closes Thursday, January 19 at 5PM so please act now!

BILLS, BILLS, BILLS

At this point, more than two dozen fracking-related bills that have been introduced in the legislature; some of them are very good, but most of them stand little chance of passage in the current session.   Here are a few of the bills we’ll be championing in the year ahead.

• S5830, the so-called “Home Rule” bill, clarifies the right of towns to enact zoning ordinances that prohibit fracking.   It will discourage industry-funded lawsuits, and encourage more towns to enact protective ordinances.  Albany insiders say S5830 has a good shot of being passed in the current session.

• Another critically important bill is A7013/S4616, which will close the hazardous waste loophole that permits the oil and gas industry to get away with improperly disposing of toxic and radioactive wastewater.  It passed in the Assembly last year, but died in the Senate.    A robust discussion of A7013/S4616 will call attention to the dangerous disposal practices routinely used to get rid of fracking waste, and underscore the fact that the shale gas extraction industry seems to be incapable of operating under the same laws that apply to every other business in America.

• A07218A/S4220-A would prohibit hydraulic fracturing anywhere in the state.  If we can get this bill enacted, New York’s fracking nightmare will be a thing of the past,  but getting it passed is likely to be a drawn out and difficult struggle.

Please share this link on Facebook and Twitter: http://catskillcitizens.org/updates/20120117.cfm

Last Day to Submit Comments to the DEC on the dSGEIS

Today is the final day to submit your comments.  They must be received at the DEC’s website by midnight, or hard copy postmarked today.

Online Submission to the DEC

I. DEC

You can use the DEC's online comment form, here;
* http://www.dec.ny.gov/energy/76838.html
* This shortened URL is easy to remember and takes you to the same place:
 TinyURL.com/SubmitSGEISComment

Paper Copy to the DEC

Letters should be sent here:

Attn: dSGEIS Comments,
New York State Department of Environmental Conservation,
625 Broadway,
Albany, NY 12233-6510. 

Please include the name, address, and affiliation (if any) of the commenter.
Paper submissions also will be accepted at the public hearings date/locations TBD.

Send a copy of your comment to other officials

II. Governor

The Honorable Andrew M. Cuomo, Governor of New York State
(518) 474-8390
NYS State Capitol Building
Albany, NY 12224
http://www.governor.ny.gov/contact/GovernorContactForm.php

III. Attorney General

Eric Schneiderman
1-800-771-7755
Office of the Attorney General, The Capitol
Albany, NY 12224-0341
http://www.ag.ny.gov/online_forms/email_ag.jsp

IV. New York State Department of Health
 Dr. Shah, Commissioner, New York State Department of Health
518-474-2011
Corning Tower, Empire State Plaza,
Albany, NY 12237
dohweb@health.state.ny.us
http://www.health.state.ny.us/

Alternate DOH contact:

Dr. Howard Freed, Director, Center for Environmental Health
New York State Department of Health
547 River Street
Troy, NY  12180-2216
518-402-7500
ceheduc@health.state.ny.us

V. Your state Senator, and Assemblyman
 Type in your address http://www.nysenate.gov/contact_form here where it says "Find my Senator" to locate your state Senator.

VI. Your state Assemblyman
Type in your address http://assembly.state.ny.us/mem/?sh=search here to locate your State Assembly re

Congressman Maurice Hinchey Asks For Withdrawal of Draft SGEIS

The Congressman representing an area of the Southern Tier and Catskills considered the most promising for Marcellus Shale development in New York has issued a letter to Governor Cuomo commenting on the DEC’s dSGEIS calling on the DEC to withdraw its dSGEIS document.  Congressman Maurice Hinchey, a Democrat representing the 22nd NY Congressional District, has issued a letter, including the following ten reasons that the dSGEIS should be withdrawn:

1. The lack of a cumulative impact analysis of natural gas drilling in the Marcellus formation to understand the full impact drilling could have on our water resources, air quality, local roads and other public infrastructure.
2. The lack of a full assessment of the public health impacts of gas drilling through an independent Health Impact Analysis, as called for by more than 250 health care professionals in an October 2011 letter to Governor Cuomo.
3. The lack of a comprehensive wastewater treatment plan that details where and how large amounts of flowback and produced water will be treated or disposed, including how toxic or radioactive contaminants will be removed.
4. The failure to prohibit the use of toxic chemicals in all fracturing fluids in order to prevent groundwater and surface water contamination.
5. No requirement to publicly disclose all chemicals used in hydraulic fracturing fluid at each well site, including a proposed list of chemicals made public before drilling operations begin and the final list of chemicals and quantities used made public no later than 30 days after drilling operations are completed.
6. The absence of a plan to identify New York areas prone to higher seismic activity and measures to prevent earthquakes potentially associated with horizontal hydraulic fracturing.
7. The failure to require a dramatic increase in DEC resources and staffing devoted to the permitting and oversight activities related to high-volume hydraulic fracturing.
8. No complete ban on land spreading of shale gas drilling waste fluids or prohibition on the use of reserve pits or centralized impoundments for fracking fluids and flowback water.
9. No alignment of DEC’s gas drilling permit rules with the requirements of secondary lending institutions covering oil and gas activity on mortgaged properties. These include pre-approval from banks and other lenders before signing gas leases, minimum setback requirements from residential structures, prohibition on certain drilling and process equipment, title insurance requirements, property assessments, and more.
10. A failure to provide for an enhanced role for local governments to prohibit gas development that is incompatible with local land-use and zoning regulations.

Among Many Fracking Bills Under Consideration, A New Moratorium Bill

Many of the bills regarding hydrofracking that were introduced in the last legislative session are likely to be re-introduced in the new session by their original sponsors.

Additionally, Comptroller Thomas DiNapoli has developed a program bill that he is promoting, even to DEC Commissioner Martens, as per this letter.

And, there is discussion of a new, 1-year Moratorium Bill in both the Senate and Assembly. As reported by Jon Campbell of Gannett News:

The legislation, which would officially ban hydrofracking for natural gas in New York until June 1, 2013, is sure to garner support from Assembly Democrats, who have long spoken out against the much-debated technique.

Sen. Greg Ball, R-Patterson, Putnam County, said last month that he was planning on sponsoring the bill in the Senate, giving it an all-important majority sponsor. But it’s much less likely to gain support from Senate Republican leadership, with both Sens. Tom Libous, R-Binghamton, and George Maziarz, R-Newfane, Niagara County, very supportive of hydrofracking. (Senate Majority Leader Dean Skelos, R-Nassau County, has voiced his support as well, though he did vote for a 2010 moratorium that was ultimately vetoed.)

Assemblywoman Barbara Lifton, D-Ithaca, issued a statement today saying she has signed on to co-sponsor the bill. The lead sponsor will be Assembly Environmental Conservation Chairman Robert Sweeney, D-Suffolk County.*

Governor’s State of the State Speech Omits Released-script Section on Hydrofracking

Governor Cuomo spoke about many things in his speech today. However, fracking was not one of them, even though the prepared remarks that were released in advance of the speech Included a section on”Hydraulic Fracturing in the Southern Tier.”  Several pages of the remarks were skipped over in that section of the speech as delivered, including this on fracking:

Hydraulic Fracturing in the Southern Tier

In 2011, the Department of Environmental Conservation(“DEC”) conducted a comprehensive review of the impact of proposed gas drilling using high-volume hydraulic fracturing.DEC presented for comment significantly improved measures to protect the state’s drinking water, air, land, another natural resources, and completed a study of potential socioeconomic impacts. DEC released the revised draft Supplemental Generic Environmental Impact Statement and comprehensive regulations governing all aspects of high volume hydraulic fracturing. DEC also held four public hearings around the state, attended by a total of 6,000

people. The Department received more than 15,000comments.DEC is reviewing all the comments and expects the final environmental impact study and the advisory panel’s recommendations to be released in 2012, before any decisions are made on how to proceed.

What did receive mention in the speech was an “Energy Superhighway” project that would bring energy from upstate downstate.

The speech as spoken is available on the Governor’s website: http://www.governor.ny.gov/

Comptroller DiNapoli Comments on dSGEIS, Asks Martens’ Support for Legislative Proposal

Comptroller DiNapoli has issued this letter to DEC Commissioner Martens, commenting on the dSGEIS and asking for support for his proposed legislation:

Natural Gas Production Contamination Damage Recovery and Remediation Fund (Natural Gas Damage Recovery Fund), now introduced in the Assembly as A.8572 by Assemblyman Sweeney.

The full text is available at:

http://www.osc.state.ny.us/press/releases/dec11/DEC_martens_letter.pdf

NYS Senator Ball, Assemblyman Sweeney, Call for Moratorium on Hydrofracking UPDATED

As we head toward the new year, the NYS Legislature prepares to re-convene, and the Governor prepares his State of the State speech and the unveiling of his proposed budget.

Solid Shale has been on hiatus, as most individuals interested in shale gas in NYS have focused on the preparation and submission of comments on the DEC (Department of Environmental Conservation) dSGEIS during its defined comment period.  If you have not yet done so, good guidance on how to submit comments by the 1/11/12 deadline is available at: http://sourcewatch.org/index.php?title=2011_SGEIS_Flaws%28NY%29

Now, the sponsors of bills introduced last year, as well as new possible legislation to be introduced this year, are beginning to speak publicly about the upcoming legislative session and their goals.

Ball suggests that a moratorium is needed because we do not have the resources in place to deal with hydrofracking:

Ball said a moratorium is needed because Governor Cuomo is not expected to allocate any funds to regulate fracking and gas drilling in next year’s executive budget proposal.

“Without the funding to properly regulate and without the manpower to properly oversee this industry, we must put the brakes on fracking,” Ball told the crowd. “It’s our fundamental responsibility to learn from the mistakes of other states like Pennsylvania and avoid the devastating effects of hydraulic fracturing here in New York. Without the funding and manpower in place to protect the well-being of our environment and our citizens, a moratorium is necessary so we can get the proper resources and regulations in place.”

The entire article is available at: http://www.thedailypeekskill.com/news/ball-calls-moratorium-hydrofracking

Another news source, WGRZ, has information about the stands of other legislators on the idea of a Moratorium:

Another issue expected to get plenty of attention is natural-gas drilling and hydraulic fracturing. Assemblywoman Barbara Lifton, D-Ithaca, and other lawmakers in both parties said they’d push for a moratorium on the much-debated technique, a move opposed by some Senate Republican leaders. New York has yet to allow high-volume hydrofracking, but is moving to finalize a state report sometime in 2012 that would allow the process to go forward.

Senate Energy Chairman George Maziarz, R-Newfane, Niagara County, said the hydrofracking issue is “more administrative than legislative,” but acknowledged that plenty of bills will be introduced to try to limit the technique.

Said Maziarz, a hydrofracking supporter: “It’s clearly going to be a topic that’s going to be discussed.”

Election Day, 2011

The NYS legislature is not in session again until January, and, with only local elections at stake this year, the NYS policy discussion has been focused on submitting comments to the DEC on the draft SGEIS.  The public hearings on that are just beginning, and the public comment period runs through Dec. 12, 2011.  See the DEC’s page for info on the hearings, and to submit comments on-line: http://www.dec.ny.gov/energy/75370.html

For help in formulating comments and interpreting the (long) document, see the wiki site established for that purpose at: TinyURL.com/2011SGEISFlaws

This blog has had a short hiatus, while people focus on the public comment period and the SGEIS comments.

But, election day will usher in a new part of the political season, and the commencement of the public hearings will make the comments being made more visible to all.

 

Across the state, there are scores of local elections in which candidates have taken stands related to local zoning and shale gas extraction in their municipalities.  The political landscape will be marked some by results of the voting today.  State legislators, as well as local officials, will be using the expression of the voting public as a guide to the attitudes of New Yorkers about hydrofracking.  Both sides of the controversial issue are attempting to rally their troops.

DEC Announces Draft Regulations, Will Double-Up With SEQRA Public Hearings, Announces 4 Public Hearings Total

The DEC has announced draft regulations and posted them.  The hearings for the rulemaking process– which requires a public hearing– are being overlaid on the hearings for the SEQRA process, which also requires a hearing.  As in, they are saving money on public hearings.  Just like they are saving trees by only printing one copy of the SGEIS per county.  Or, they are doing their best to limit and control the access that the public has to the process that we don’t have much effect.

It is unusual to proceed this way, and many observers see it as a clear sign of “fast-tracking.”

The Marcellus Effect story on this is so excellent and clear, I would recommend reading the whole thing.  I sample a large chunk of it below, with thanks:

The draft regulations are supposed to create a legal framework for implementing the proposed mitigation measures published in the revised dSGEIS. The public comment period on the draft regulations begins today and runs concurrently with the public comment period on the dSGEIS, which ends Dec. 12.

In addition for the drilling rules, DEC also released the proposed State Pollutant Discharge Elimination System (SPDES) General Permit (GP) for Stormwater Discharges associated with high-volume hydraulic fracturing.

 Four Hearings:

Each public hearing will have an afternoon from 1 – 4 pm and an evening session from 6-9 pm. Comments will be accepted in written and oral format at the hearings.

Here’s where the hearings will be:

• Nov. 16: Dansville Middle School Auditorium, 31 Clara Barton St., Dansville, NY 14437
• Nov. 17: The Forum Theatre, 236 Washington Street, Binghamton, NY, 13901
• Nov. 29: Sullivan County Community College, Seelig Theatre, 112 College Rd, Loch   Sheldrake, NY 12759
• Nov. 30: Tribeca Performing Arts Center, 199 Chambers Street, New York, NY, 10007

Once the comment period is complete, DEC will review the comments and prepare responses to be released with the final SGEIS and final regulations.  No permits for high-volume hydraulic fracturing will be issued until the SGEIS is finalized and DEC issues the required Findings Statement.

 How to submit comments:

Via the Web at http://www.dec.ny.gov/energy/76838.html

By mail to Attn: dSGEIS Comments; New York State Department of Environmental Conservation; 625 Broadway; Albany, NY 12233-6510

For More Info:

On the dSGEIS: http://www.dec.ny.gov/energy/75370.html;

On the proposed State Pollutant Discharge Elimination System (SPDES) General Permit (GP) for Stormwater Discharges along with its fact sheet: http://www.dec.ny.gov/permits/77251.html;

On the proposed regulations: http://www.dec.ny.gov/regulations/77353.html