American Oil and Gas Reporter - June 2012 - 173

New York Moving Ahead With SGEIS
HAMBURG, N.Y.–While New York continues to revise its permitting system for high-volume hydraulic fracturing, one company has moved to introduce fracturing technology that doesn’t require the huge amounts of water that trigger the need for such state permits. Brad Gill, executive director of the Independent Oil & Gas Association of New York, reports the status of the state’s draft supplemental generic environmental impact statement is “not concrete positive news, but kind of read-between-the-lines positive news.” Gill notes New York issued a supplemental draft to its generic environmental impact statement in 2009 to update its permitting process for shale gas development using horizontal drilling and hydraulic fracturing, and the state Department of Environmental Conservation revised the draft in 2011. The public comment period attracted more than 66,000 responses, which the DEC is now reviewing, he says. “DEC remains noncommittal about when the SGEIS will be released, but according to the department, it is still on track processing the 66,000 comments. DEC still is hopeful that by this summer or certainly fall, it should have those comments processed and may be ready to issue permits by the end of the year. I am more optimistic than ever that industry will have the green light for permits to be issued as early as midsummer–barring a legal challenge. Hopefully that guess is right,” Gill says. While producers wait on the new permit, one company began to seek another way to access the Marcellus Shale. Gill points out the trigger for wells that require them to operate under the SGEIS is the amount of water used in the frac job. Early in 2012, eCorp was working with a landowner coalition in Tioga County, N.Y., on a project that sought to use GASFRAC’s liquefied petroleum gas technology on 135,000 Marcellus Shale acres. The company says it and the landowners decided in late April to stop the project because of low commodity prices. “For the longest time, anti-development groups have been saying use green fluids, or why don’t you consider not using water because of the 3 million-5 million gallons needed,” Gill reflects. “So, even the opposition groups have been proponents of propane fracturing.” According to Gill, because the project was to use LPG in place of water, DEC likely would have allowed it to proceed, assuming it survived the state’s environmental quality review process. “Of course, about two weeks after that project became public, you saw the antidevelopment groups completely reverse and oppose it,” Gill reports. “They said you can’t do that because the impacts of propane fracturing have not been studied.” While the regulatory arena remains problematic, Gill says industry prospects in the New York Legislature are brighter. Most of the anti-oil-and-gas bills introduced in the 2012 session died with no support, he reports (see story page 16). Property Rights Also in May, a coalition of upstate New York landowners interesting in leasing their land for gas drilling pushed state officials to consider the rights of property owners as they developed legislation on shale gas development, media reports indicate. The Joint Landowners Coalition of New York asserts people holding extreme political agendas, including those seeking bans on high-volume fracturing, are threatening landowners’ rights. According to the group, 19 municipalities have passed nonbinding resolutions that support developing the Marcellus and Utica shales. Five governments in Stueben County–the villages of Addison and Painted Post, and the towns of Bath, Jasper and Woodhull–and two towns in Broome County–Colesville and Windsor–have adopted resolutions supporting hydraulic fracturing, media reports indicate. “Basically (the municipalities) are stating that they agree with the DEC, New York State and the governor. They want to wait for the science,” says Dan Fitzsimmons, president of the coalition. “They are not against drilling; they are not going to go with a moratorium; and they are going to see what the DEC comes out with.” Ì

Challenges To Act 13 Moving Forward
WEXFORD, PA–The Pennsylvania Public Utility Commission has finalized the natural gas impact fee portions of Act 13 as battling continues in the court system over the municipal regulation provisions of the new law, reports the Pennsylvania Independent Oil & Gas Association. The PUC on May 10 approved its final implementation order dealing with how the agency will collect and distribute the impact fee to be paid beginning Sept. 1 on unconventional gas wells, according to PIOGA. The fee, which will generate an estimated $180 million this year and $211 million in 2013, is to be divided among municipalities where drilling occurs, as well as among a variety of state agencies and programs. However, the agency’s other role in Act 13–determining the legality of municipal oil and gas zoning ordinances–is on hold over court challenges to that part of the law. PIOGA reports that after a Commonwealth Court judge imposed a 120-day delay on the municipal regulation provisions of the law in response to a challenge by a group of seven townships and boroughs, the PUC protested that the scope of the judge’s preliminary injunction was ambiguous. The PUC formally requested that Senior Judge Keith B. Quigley clarify or modify his order to allow challenges of local oil and gas ordinances up to Dec. 10, when the zoning regulations allowed under Act 13 are to take effect. But Quigley denied the PUC’s request in a one-sentence order that did not explain his decision, PIOGA reports. Supreme Court Appeal In response to Judge Quigley’s denial, PIOGA says the PUC filed an appeal on May 3 with the Pennsylvania Supreme Court. A separate appeal to the high court was entered on the same date by the Pennsylvania Department of Environmental Protection and the Office of Attorney General. PIOGA reports all three raise identical issues regarding the judge’s handling of the case: • Did the Commonwealth Court err in granting a preliminary injunction when the municipal challengers did not establish a likelihood of success on the merits of their Act 13 lawsuit, and failed to establish that they would suffer the irreparable harm required for an injunction? • Did the Commonwealth Court err in refusing to modify its injunction order when its reach and scope were unclear and created uncertainties as to the status of Act 13? • The judge did not provide an
JUNE 2012 173



Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2012

American Oil and Gas Reporter - June 2012
Contents
Reports
Calendar
Oil & Gas Counts
State Legislative
Industry Digest
Natural Gas NSPS Affects a Variety of Equipment
Federal Legislation
SPCC
EPA
Keystone XL
Tech Connections
Washington Watch
Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
Variety of Projects Have Permian Basin Hopping
Infrastructure Bottlenecks Easing in Permian Region
Completion Design Optimizes Yeso-San Andres Oil Wells
Cover Story
Beaver Creek CO2 Flood Boosts Madison Production
Study Evaluates Low-Salinity Waterfloods
Variable Speed Drives Coming of Age
Activity Spurring Artificial Lift Innovations
Project Shows STMZ’s Viability for Lower Tertiary Completions
ICDs, Modeling Improve Horizontal Shelf Well Completion
Intelligent Gas Lift Maximizes Production, Recovery
KOGA
CIPA
TOGA
TAEP
Frac Rules
Marcellus Regs
Conventions
The American Well Servicing Directory, Summer 2012
Industry Focus
Classified Advertising
Advertisers Index
American Oil and Gas Reporter - June 2012 - American Oil and Gas Reporter - June 2012
American Oil and Gas Reporter - June 2012 - Cover2
American Oil and Gas Reporter - June 2012 - Contents
American Oil and Gas Reporter - June 2012 - Reports
American Oil and Gas Reporter - June 2012 - 5
American Oil and Gas Reporter - June 2012 - 6
American Oil and Gas Reporter - June 2012 - 7
American Oil and Gas Reporter - June 2012 - Calendar
American Oil and Gas Reporter - June 2012 - 9
American Oil and Gas Reporter - June 2012 - 10
American Oil and Gas Reporter - June 2012 - 11
American Oil and Gas Reporter - June 2012 - 12
American Oil and Gas Reporter - June 2012 - 13
American Oil and Gas Reporter - June 2012 - Oil & Gas Counts
American Oil and Gas Reporter - June 2012 - 15
American Oil and Gas Reporter - June 2012 - Industry Digest
American Oil and Gas Reporter - June 2012 - 17
American Oil and Gas Reporter - June 2012 - 18
American Oil and Gas Reporter - June 2012 - 19
American Oil and Gas Reporter - June 2012 - 20
American Oil and Gas Reporter - June 2012 - 21
American Oil and Gas Reporter - June 2012 - 22
American Oil and Gas Reporter - June 2012 - 23
American Oil and Gas Reporter - June 2012 - Natural Gas NSPS Affects a Variety of Equipment
American Oil and Gas Reporter - June 2012 - 25
American Oil and Gas Reporter - June 2012 - 26
American Oil and Gas Reporter - June 2012 - 27
American Oil and Gas Reporter - June 2012 - Federal Legislation
American Oil and Gas Reporter - June 2012 - 29
American Oil and Gas Reporter - June 2012 - 30
American Oil and Gas Reporter - June 2012 - 31
American Oil and Gas Reporter - June 2012 - SPCC
American Oil and Gas Reporter - June 2012 - 33
American Oil and Gas Reporter - June 2012 - Keystone XL
American Oil and Gas Reporter - June 2012 - 35
American Oil and Gas Reporter - June 2012 - 36
American Oil and Gas Reporter - June 2012 - Tech Connections
American Oil and Gas Reporter - June 2012 - 38
American Oil and Gas Reporter - June 2012 - Washington Watch
American Oil and Gas Reporter - June 2012 - Anadarko Finds World-Class Reservoirs in Deepwater Mozambique
American Oil and Gas Reporter - June 2012 - 41
American Oil and Gas Reporter - June 2012 - 42
American Oil and Gas Reporter - June 2012 - 43
American Oil and Gas Reporter - June 2012 - 44
American Oil and Gas Reporter - June 2012 - 45
American Oil and Gas Reporter - June 2012 - 46
American Oil and Gas Reporter - June 2012 - 47
American Oil and Gas Reporter - June 2012 - 48
American Oil and Gas Reporter - June 2012 - 49
American Oil and Gas Reporter - June 2012 - Variety of Projects Have Permian Basin Hopping
American Oil and Gas Reporter - June 2012 - 51
American Oil and Gas Reporter - June 2012 - 52
American Oil and Gas Reporter - June 2012 - 53
American Oil and Gas Reporter - June 2012 - 54
American Oil and Gas Reporter - June 2012 - 55
American Oil and Gas Reporter - June 2012 - 56
American Oil and Gas Reporter - June 2012 - 57
American Oil and Gas Reporter - June 2012 - 58
American Oil and Gas Reporter - June 2012 - 59
American Oil and Gas Reporter - June 2012 - 60
American Oil and Gas Reporter - June 2012 - 61
American Oil and Gas Reporter - June 2012 - 62
American Oil and Gas Reporter - June 2012 - 63
American Oil and Gas Reporter - June 2012 - Infrastructure Bottlenecks Easing in Permian Region
American Oil and Gas Reporter - June 2012 - 65
American Oil and Gas Reporter - June 2012 - 66
American Oil and Gas Reporter - June 2012 - 67
American Oil and Gas Reporter - June 2012 - 68
American Oil and Gas Reporter - June 2012 - 69
American Oil and Gas Reporter - June 2012 - 70
American Oil and Gas Reporter - June 2012 - 71
American Oil and Gas Reporter - June 2012 - Completion Design Optimizes Yeso-San Andres Oil Wells
American Oil and Gas Reporter - June 2012 - 73
American Oil and Gas Reporter - June 2012 - 74
American Oil and Gas Reporter - June 2012 - 75
American Oil and Gas Reporter - June 2012 - 76
American Oil and Gas Reporter - June 2012 - 77
American Oil and Gas Reporter - June 2012 - 78
American Oil and Gas Reporter - June 2012 - 79
American Oil and Gas Reporter - June 2012 - 80
American Oil and Gas Reporter - June 2012 - 81
American Oil and Gas Reporter - June 2012 - Cover Story
American Oil and Gas Reporter - June 2012 - 83
American Oil and Gas Reporter - June 2012 - 84
American Oil and Gas Reporter - June 2012 - 85
American Oil and Gas Reporter - June 2012 - 86
American Oil and Gas Reporter - June 2012 - 87
American Oil and Gas Reporter - June 2012 - 88
American Oil and Gas Reporter - June 2012 - 89
American Oil and Gas Reporter - June 2012 - 90
American Oil and Gas Reporter - June 2012 - 91
American Oil and Gas Reporter - June 2012 - Beaver Creek CO2 Flood Boosts Madison Production
American Oil and Gas Reporter - June 2012 - 93
American Oil and Gas Reporter - June 2012 - 94
American Oil and Gas Reporter - June 2012 - 95
American Oil and Gas Reporter - June 2012 - 96
American Oil and Gas Reporter - June 2012 - 97
American Oil and Gas Reporter - June 2012 - 98
American Oil and Gas Reporter - June 2012 - 99
American Oil and Gas Reporter - June 2012 - Study Evaluates Low-Salinity Waterfloods
American Oil and Gas Reporter - June 2012 - 101
American Oil and Gas Reporter - June 2012 - 102
American Oil and Gas Reporter - June 2012 - 103
American Oil and Gas Reporter - June 2012 - Variable Speed Drives Coming of Age
American Oil and Gas Reporter - June 2012 - 105
American Oil and Gas Reporter - June 2012 - 106
American Oil and Gas Reporter - June 2012 - 107
American Oil and Gas Reporter - June 2012 - Activity Spurring Artificial Lift Innovations
American Oil and Gas Reporter - June 2012 - 109
American Oil and Gas Reporter - June 2012 - 110
American Oil and Gas Reporter - June 2012 - 111
American Oil and Gas Reporter - June 2012 - 112
American Oil and Gas Reporter - June 2012 - 113
American Oil and Gas Reporter - June 2012 - 114
American Oil and Gas Reporter - June 2012 - 115
American Oil and Gas Reporter - June 2012 - 116
American Oil and Gas Reporter - June 2012 - 117
American Oil and Gas Reporter - June 2012 - Project Shows STMZ’s Viability for Lower Tertiary Completions
American Oil and Gas Reporter - June 2012 - 119
American Oil and Gas Reporter - June 2012 - 120
American Oil and Gas Reporter - June 2012 - 121
American Oil and Gas Reporter - June 2012 - 122
American Oil and Gas Reporter - June 2012 - 123
American Oil and Gas Reporter - June 2012 - 124
American Oil and Gas Reporter - June 2012 - 125
American Oil and Gas Reporter - June 2012 - 126
American Oil and Gas Reporter - June 2012 - 127
American Oil and Gas Reporter - June 2012 - 128
American Oil and Gas Reporter - June 2012 - 129
American Oil and Gas Reporter - June 2012 - 130
American Oil and Gas Reporter - June 2012 - ICDs, Modeling Improve Horizontal Shelf Well Completion
American Oil and Gas Reporter - June 2012 - 132
American Oil and Gas Reporter - June 2012 - 133
American Oil and Gas Reporter - June 2012 - 134
American Oil and Gas Reporter - June 2012 - 135
American Oil and Gas Reporter - June 2012 - 136
American Oil and Gas Reporter - June 2012 - 137
American Oil and Gas Reporter - June 2012 - 138
American Oil and Gas Reporter - June 2012 - 139
American Oil and Gas Reporter - June 2012 - 140
American Oil and Gas Reporter - June 2012 - Intelligent Gas Lift Maximizes Production, Recovery
American Oil and Gas Reporter - June 2012 - 142
American Oil and Gas Reporter - June 2012 - 143
American Oil and Gas Reporter - June 2012 - 144
American Oil and Gas Reporter - June 2012 - 145
American Oil and Gas Reporter - June 2012 - 146
American Oil and Gas Reporter - June 2012 - 147
American Oil and Gas Reporter - June 2012 - 148
American Oil and Gas Reporter - June 2012 - KOGA
American Oil and Gas Reporter - June 2012 - 150
American Oil and Gas Reporter - June 2012 - 151
American Oil and Gas Reporter - June 2012 - CIPA
American Oil and Gas Reporter - June 2012 - 153
American Oil and Gas Reporter - June 2012 - 154
American Oil and Gas Reporter - June 2012 - 155
American Oil and Gas Reporter - June 2012 - TOGA
American Oil and Gas Reporter - June 2012 - 157
American Oil and Gas Reporter - June 2012 - 158
American Oil and Gas Reporter - June 2012 - 159
American Oil and Gas Reporter - June 2012 - 160
American Oil and Gas Reporter - June 2012 - 161
American Oil and Gas Reporter - June 2012 - 162
American Oil and Gas Reporter - June 2012 - 163
American Oil and Gas Reporter - June 2012 - TAEP
American Oil and Gas Reporter - June 2012 - 165
American Oil and Gas Reporter - June 2012 - 166
American Oil and Gas Reporter - June 2012 - 167
American Oil and Gas Reporter - June 2012 - 168
American Oil and Gas Reporter - June 2012 - 169
American Oil and Gas Reporter - June 2012 - 170
American Oil and Gas Reporter - June 2012 - Frac Rules
American Oil and Gas Reporter - June 2012 - Marcellus Regs
American Oil and Gas Reporter - June 2012 - 173
American Oil and Gas Reporter - June 2012 - Conventions
American Oil and Gas Reporter - June 2012 - The American Well Servicing Directory, Summer 2012
American Oil and Gas Reporter - June 2012 - 176
American Oil and Gas Reporter - June 2012 - 177
American Oil and Gas Reporter - June 2012 - 178
American Oil and Gas Reporter - June 2012 - 179
American Oil and Gas Reporter - June 2012 - 180
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American Oil and Gas Reporter - June 2012 - 199
American Oil and Gas Reporter - June 2012 - 200
American Oil and Gas Reporter - June 2012 - 201
American Oil and Gas Reporter - June 2012 - 202
American Oil and Gas Reporter - June 2012 - Industry Focus
American Oil and Gas Reporter - June 2012 - 204
American Oil and Gas Reporter - June 2012 - 205
American Oil and Gas Reporter - June 2012 - 206
American Oil and Gas Reporter - June 2012 - 207
American Oil and Gas Reporter - June 2012 - 208
American Oil and Gas Reporter - June 2012 - Classified Advertising
American Oil and Gas Reporter - June 2012 - Advertisers Index
American Oil and Gas Reporter - June 2012 - Cover3
American Oil and Gas Reporter - June 2012 - Cover4
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