The majority of FracTracker’s posts are generally considered articles. These may include analysis around data, embedded maps, summaries of partner collaborations, highlights of a publication or project, guest posts, etc.

Graphic by Eddie Lobanovskiy

PA Gas-Related Legislation

January 2016 Update

This project has been archived

From PennEnvironment comes a great resource for those who are trying to keep up with the ever-changing political environment in Pennsylvania: a list of PA gas legislation related to unconventional natural gas extraction. Many thanks to Kristen Tobin, Erika Staaf, and colleagues for making this information easily accessible to the public.

The listed will be updated periodically when new information becomes available. If you have any questions or comments regarding this information, please contact Erika. This list is organized alphabetically by the bill name/number. Last updated: June 3, 2013

Bill Number Sponsor Title/Description Last Action

HB 33 Rep. Kula An Act amending Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, further providing for subjects of local taxation and for valuation of property. Legislation Providing for a County Assessment on Oil and Gas. Jan. 9, 2013 – Referred to House Committee on Environmental Resources and Energy
HB 66 Rep. Sturla An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, further providing for requirements for natural gas suppliers and for requirements for electric generation suppliers. Legislation to Prohibit Certain Fees by Electric Generation Suppliers and Natural Gas Suppliers. Jan. 10, 2013 – Referred to House Committee of Consumer Affairs
HB 96 Rep. Godshall An Act amending the act of July 11, 2006 (P.L.1134, No.115), known as the Dormant Oil and Gas Act, further providing for purpose, for definitions and for creation of trust for unknown owners. Jan. 14, 2013 – Referred to Committee on Environmental Resources and Energy
HB 97
Former HB 375
Rep. Godshall An Act amending the act of July 11, 2006 (P.L.1134, No.115), known as the Dormant Oil and Gas Act, providing for oil and gas estate abandonment and for preservation of interests in oil and gas. Jan. 14, 2013 – Referred to Committee on Environmental Resources and Energy
HB 200 Rep. Vitali An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, further providing for distribution of fee and for Statewide initiatives; providing for the PA Sunshine Solar Program; and making a related repeal. Feb. 13, 2013 – Referred to Committee on Environmental Resources and Energy
HB 268 Rep. White An Act providing for disclosure of certain test results by the Department of Environmental Protection; and imposing a civil penalty. Jan. 23, 2013
-Referred to House Committee on Environmental Resources and Energy
HB 301 Rep. Saylor An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for a natural gas fleet vehicle tax credit; and imposing penalties. Apr. 24, 2013 – Referred to Senate Committee on Finance
HB 305
Marcellus Works Package
Rep. Denlinger An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for a natural gas corridor tax credit; and imposing penalties.
Feb. 5, 2013 – Referred to Finance
HB 307
Marcellus Works Package
Rep. Evankovich An Act amending the act of January 8, 1960 (1959 P.L.2119, No.787), known as the Air Pollution Control Act, providing for the Clean Vehicles Program. Feb. 5, 2013 – Referred to Committee on Environmental Resources and Energy
HB 309
Marcellus Works Package
Rep. Grove An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for a natural gas vehicle tax credit. Feb. 5, 2013 – Referred to Finance
HB 351 Rep. Reed An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in general requirements, further providing for well permits. Jan. 29, 2013 – Referred to Committee on Environmental Resources and Energy
HB 402
Former HB 2320
Rep. Pickett An Act imposing duties on lessees of oil and natural gas leases; and providing for the recording of releases from oil and natural gas leases and of affidavits of termination or cancellation. Jan. 29, 2013 – Referred to Committee on Environmental Resources and Energy
HB 444 Rep. Causer An Act amending the act of May 17, 1929 (P.L.1798, No.591), referred to as the Forest Reserves Municipal Financial Relief Law, providing for distribution of timber, wood products and gas and oil ground rentals and royalties. Jan. 30, 2013 – Referred to Committee on Environmental Resources and Energy
HB 495 Rep. Boback An Act providing for the erosion and sedimentation program to be administered by delegation agreements between the Department of Environmental Protection and conservation districts. Co-sponsorship of Legislation – Provides for Erosion & Sedimentation Agreements Between DEP and County Conservation Districts. Feb. 4, 2013 – Referred to House Committee on Environmental Resources and Energy
HB 661 Rep. Milne An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, in general requirements relating to development, further providing for use of safety devices. “Promoting the Natural Gas Sector by Enhancing Public Safety Communications” (Prior HB2312) Feb. 11, 2013 – Referred to Committee on Environmental Resources and Energy
HB 800
Formerly HB 230
Rep. Mundy An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, further providing for well location restrictions. “Reintroduction of Legislation: Prohibiting hydraulic fracturing or horizontal drilling within 2,500 feet of a primary source of a community water system Feb. 25, 2013 – Referred to Committee on Environmental Resources and Energy
HB 801
Formerly HB 234
Rep. Mundy An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, further providing for definitions and for well location restrictions. “Reintroduction of Legislation: Providing for the tracking of Marcellus Shale wastewater Feb. 25, 2013 – Referred to Committee on Environmental Resources and Energy
HB 880 Rep. Conklin An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, further providing for well permits. Mar. 11, 2013 – Referred to Committee on Environmental Resources and Energy
HB 881
Formerly HB 1631
Rep. Conklin An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, providing for toll-free response telephone number. Legislation Providing for a Telephone Number to Report Suspected Violations of Oil and Gas Laws Mar. 11, 2013 – Referred to Committee on Environmental Resources and Energy
HB 888 Rep. Millard An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, in powers and duties of Department of General Services and its departmental administrative and advisory boards and commissions, further providing for State heating system to be fueled by coal or natural gas. State heating system to be fueled by coal or natural gas Mar. 11, 2013 – Referred to House Committee on State Government
HB 904 Rep. Reese An Act providing for certain disclosure statements in easement agreements for certain natural gas pipelines Mar. 11, 2013 – Referred to House Committee on State Government
HB 950 Rep. Vitali An Act providing for a moratorium on leasing lands owned and managed by the Department of Conservation and Natural Resources for the purposes of oil and natural gas development. Mar. 11, 2013 – Referred to Committee on Environmental Resources and Energy
HB 986 Rep. Everett An Act requiring well operators to provide complete water analysis results to the Department of Environmental Protection under certain circumstances. Mar. 13, 2013 – Referred to Committee on Environmental Resources and Energy
HB 994 Rep. Petri An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, further providing for well permits, for general gas storage reservoir operations and for regulations. Mar. 14, 2013 – Referred to Committee on Environmental Resources and Energy
HB 1015 Rep. M.K Keller An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for a natural gas farm equipment conversion tax credit. Natural Gas Farm Equipment Conversion Tax Credit. Mar. 18, 2013 – Referred to House Committee on Finance
HB 1188 Rep. Payne An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, further providing for sliding scale of rates and adjustments and for duties of natural gas distribution companies. Co-sponsorship – Representative Payne – amend Natural Gas Choice and Competition Act. Feb. 25, 2013 – Referred to Committee on Environmental Resources and Energy
HB 1414 Rep. Everett An Act amending the act of July 20, 1979 (P.L.183, No.60), entitled “An act regulating the terms and conditions of certain leases regarding natural gas and oil,” further providing for validity of leases and guaranteeing a royalty; adding definitions; providing for apportionment; further providing for commencement of guaranteed royalty; providing for payment information to interest owners and for accumulation of proceeds from production; and making editorial changes. Transparency of Deductions from Royalty Checks. May 16, 2013 – Referred to House Committee on Environmental Resources and Energyy
HR 106 Rep. Mundy A Resolution memorializing the Congress of the United States to repeal the provision in the Federal Safe Drinking Water Act that exempts oil and gas industries from restrictions on hydraulic fracturing operations located near drinking water sources, and to require oil and gas industries to disclose all hydraulic fracturing chemicals and chemical constituents in the event of a medical emergency. Feb. 25, 2013 – Referred to Committee on Environmental Resources and Energy
HR 249 Rep. Swanger A Resolution supporting continued and increased development and delivery of oil derived from North American oil reserves to American refineries and urging the President and Congress of the United States to support the continued and increased production and use of American natural gas. Resolution re: Gas Prices and Domestic Oil Drilling. Apr. 16, 2013 – Referred to House Committee on State Government
HB 683 Rep. Haluska An Act amending Title 18 (Crimes and Offenses) of the Pennsylvania Consolidated Statutes, in arson, criminal mischief and other property destruction, providing for the offense of interfering with agricultural operations. Feb. 12 – Referred to Judiciary
SB 154 Sen. Greenleaf An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, providing for gas mineral rights lease agreement disclosure and indemnification. Jan. 15, 2013 – Referred to Environmental Resources and Energy
SB 213 Sen. Farnese An Act transferring funds from the Oil and Gas Lease Fund to the Ben Franklin Technology Development Authority Fund for investments in Pennsylvania-related companies that promote the development of next-generation infrastructure technologies or technology-related investments to support development of life science, information technology or green energy industries. Feb. 1, 2013 – Referred to Environmental Resources and Energy
SB 218 Sen. Solobay An Act amending the act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known as the Alternative Energy Investment Act, further providing for alternative and clean energy supply chain initiatives. Solar & Natural Gas Supply Chain Initiative. Feb. 4, 2013 – Referred to Senate Committee on Community, Economic and Recreational Development
SB 258 Sen. Yaw An Act amending Title 42 (Judiciary and Judicial Procedure) of the Pennsylvania Consolidated Statutes, in particular rights and immunities, providing for actions to quiet title involving subsurface rights. Abandonment of Mineral Rights Jan. 17, 2013 – Referred to Environmental Resources and Energy
SB 259 Sen. Yaw An Act amending the act of July 20, 1979 (P.L.183, No.60), entitled “An act regulating the terms and conditions of certain leases regarding natural gas and oil,” adding definitions; providing for payment information to interest owners for accumulation of proceeds from production; and making editorial changes. Division Order for Royalties Feb. 5, 2013(50-0) [Senate] –Third consideration and final passage
SB 291 Sen. Erickson An Act establishing a program for the purchase of certain types of environmental liability insurance and for subsidies for the costs of premiums; and providing for powers and duties of the Department of Environmental Protection. Jan. 24, 2013 – Referred to Environmental Resources and Energy
SB 355 Sen. Yaw An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, consolidating the Oil and Gas Conservation Law with modifications relating to definitions, standard unit order, process, administration, standard of review, hearings and appeals, establishment of units, integration of various interests, lease extension and scope; providing for gas and hazardous liquids pipelines; and making a related repeal. Jan. 31, 2013 – Referred to Environmental Resources and Energy
SB 356 Sen. Yaw An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, providing for lease extended by production. Jan. 31, 2013 – Referred to Environmental Resources and Energy
SB 411 Sen. Kasunic An Act amending Title 27 (Environmental Resources) of the Pennsylvania Consolidated Statutes, further providing for definitions, for eligibility and project inventory, for landowner liability limitation and exceptions, for project liability limitation and exceptions and for exceptions. Use of Acid Mine Water for Hydraulic Fracturing and Industrial Applications. Feb. 12, 2013 – First consideration
Mar. 13, 2013 -Laid on the table
SB 459 Sen. Costa An Act relating to safe drinking water; establishing the Emergency Drinking Water Support Fund; and providing for testing, for purchase of clean drinking water and for surcharge. Well Water Testing Fund Feb. 8, 2013 – Referred to Environmental Resources and Energy
SB 504 Sen. Dinniman An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, in powers and duties of Department of Environmental Protection, further providing for cooperation with municipalities. DEP Public Notification and Access to Information Act; Pipeline Acre-for-Acre; and Condemnation Approval Feb. 26, 2013 – Referred to Environmental Resources and Energy
SB 506 Sen. Dinniman An Act amending the act of December 22, 2011 (P.L.586, No.127), known as the Gas and Hazardous Liquids Pipelines Act, further providing for definitions; and providing for recreational use and for storm water runoff.  DEP Public Notification and Access to Information Act; Pipeline Acre-for-Acre; and Condemnation Approval Feb. 26, 2013 – Referred to Environmental Resources and Energy
SB 507 Sen. Dinniman An Act amending the act of June 30, 1981 (P.L.128, No.43), known as the Agricultural Area Security Law, further providing for limitation on certain governmental actions. DEP Public Notification and Access to Information Act; Pipeline Acre-for-Acre; and Condemnation Approval Feb. 26, 2013 – Referred to Agriculture and Rural Affairs
SB 512 Sen. Kasunic An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, further providing for enforcement orders. Feb. 20, 2013 – Referred to Environmental Resources and Energy
SB 540 Sen. Leach An Act providing for a moratorium on leasing State forest lands for the purposes of natural gas exploration, drilling or production; imposing duties on the Department of Conservation and Natural Resources; and providing for report contents and for Legislative Budget and Finance Committee study. Moratorium on Leasing State Forest Land for Natural Gas Drilling Feb. 21, 2013 – Referred to Environmental Resources and Energy
SB 544 Sen. Leach An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, further providing for hydraulic fracturing chemical disclosure requirements. Physician access to and disclosure of chemicals in Marcellus Shale hydro-fracking Feb. 21, 2013 – Referred to Environmental Resources and Energy
SB 555 Sen. Scarnati An Act establishing the Health Advisory Panel on Shale Gas Extraction and Natural Gas Use; and providing for its powers and duties. Marcellus Shale Health Advisory Panel. Physician access to and disclosure of chemicals in Marcellus Shale hydro-fracking Mar. 20, 2013 – Referred to Senate Committee on Public Health and Welfare
SB 592 Sen Fontana An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, further providing for protection of water supplies. Co Sponsorship: Water Testing Results by DEP Mar. 1, 2013 – Referred to Environmental Resources and Energy
SB 738 Sen Yaw An Act providing for distribution system extension and expansion plans to increase natural gas usage in this Commonwealth. Pennsylvania Natural Gas Expansion and Development Initiative. Co Sponsorship: Water Testing Results by DEP May 7, 2013 – Referred to Senate Committee on Appropriations
SB 739 Sen Yaw An Act amending the act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known as the Alternative Energy Investment Act, further providing for Commonwealth Financing Authority. Co Sponsorship: Water Testing Results by DEP May 7, 2013 – Re-Referred to Senate Committee on Appropriations
SB 941 Sen Yudichak An Act amending the act of June 28, 1995 (P.L.89, No.18), known as the Conservation and Natural Resources Act, further providing for forests. Legislation to Require A Public Hearing Before Leasing State Land. Co Sponsorship: Water Testing Results by DEP May 15, 2013 – Referred to Senate Committee on Environmental Resources and Energy
TBA Sen. Ferlo An Act enacting a moratorium on unconventional well natural gas drilling in the Commonwealth. The moratorium would prohibit the Department of Environmental Protection (DEP) from issuing new unconventional well permits while a seven member commission studies the varied environmental impacts that the natural gas industry has on the Commonwealth. . Memorandum posted on April 30, 2013
SR 29 Sen. Yaw A Resolution directing the Center for Rural Pennsylvania to study the potential for increased residential, commercial and industrial natural gas distribution infrastructure by Pennsylvania’s public utilities to unserved and underserved areas of this Commonwealth. Mar. 14, 2013 – Transmitted as directed
SR 38 Sen. Solobay A Resolution directing the Department of General Services to conduct a study to determine the associated costs and feasibility of converting and retrofitting State-owned vehicles with compressed natural gas and liquefied natural gas engines for the purpose of modernizing the State fleet. State Fleet Natural Gas Vehicle Study. Mar. 1, 2013 – Referred to Senate Committee on State Government
SR 39 Sen. Alloway A Resolution directing the Legislative Budget and Finance Committee to conduct a study of the establishment, implementation and administration of fees for the consumptive use and degradation of water. Consumptive Use of Water Mar. 13, 2013 – Referred to Environmental Resources and Energy
SR 57 Sen. Cornman A Resolution directing the Legislative Budget and Finance Committee to conduct a study on the feasibility and effectiveness of converting the Southeastern Pennsylvania Transportation Authority bus system to natural gas fuel. LBFC Natural Gas Fuel Study for SEPTA Buses. Consumptive Use of Water Apr. 4, 2013 – Referred to Senate Committee on Transportation

Last updated: June 3, 2013

Controversy in the Loyalsock

Controversy in the Loyalsock

By Mark Szybist, Staff Attorney, PennFuture

What are the Clarence Moore Lands?

The Clarence Moore lands are 25,621 acres of “split estate” lands in the Loyalsock State Forest where the surface rights are owned by the Commonwealth of Pennsylvania and the oil and gas rights are owned by two private parties – an affiliate of Anadarko Petroleum Corporation (Anadarko) and a private company called International Development Corporation (IDC). The Pennsylvania Department of Conservation and Natural Resources (DCNR) calls this acreage the “Clarence Moore lands,” after an individual who once owned the area’s oil and gas interests.

What is the controversy over the Clarence Moore lands?

The Clarence Moore lands have become controversial because Anadarko wants to drill gas wells on them (and build compressor stations, water impoundments, pipelines, and new roads). Because of the ecological and recreational sensitivity of the Clarence Moore lands, PA’s conservation community (and much of the general public) wants the DCNR to use its substantial powers to minimize surface activities, if not prevent them altogether.

In general, when a “split estate” exists in PA, the party that owns or controls the oil and gas estate has an implied right to use the surface that it does not own in order to extract oil and gas. The Clarence Moore lands present an exception to this rule. Due to a provision in the Commonwealth’s deed, the DCNR has the power to deny Anadarko access to 18,870 acres of the Clarence Moore lands – almost 75%. To obtain access, Anadarko needs a right-of-way from the DCNR. Conservationists are arguing that given this power, the DCNR has leverage to protect all of the Clarence Moore lands – including the 6,841 acres where Anadarko appears to have traditional “split estate” surface rights.

In March 2012 Anadarko submitted to the DCNR a development plan for the Clarence Moore lands. For almost a year, a coalition of conservation, recreation, fishing and hunting organizations (and thousands of private citizens) have been pressing the DCNR to conduct a public input process on the Clarence Moore lands before making any agreement with Anadarko. The coalition wants the DCNR to make public its environmental impact analyses, allow public comment on all development and non-development alternatives, and protect the Clarence Moore lands for future generations of Pennsylvania citizens. In April 2013 the DCNR conducted an invitation-only meeting about the Clarence Moore lands for “local stakeholders,” followed by a webinar in collaboration with the Penn State Extension of the Penn State College of Agricultural Sciences. The DCNR announced on May 22, 2013 that it would hold a public meeting in Williamsport on June 3rd.

Why are the Clarence Moore lands so important?

The Clarence Moore lands are a wealth of ecological and recreational resources. They include the Old Loggers Path (OLP), an acclaimed 27-mile hiking trail that follows former logging trails and opens onto stunning vistas. According to DCNR documents, the OLP “will be taking the brunt of development [from Anadarko’s activities].”

The Clarence Moore lands include most of the watershed of Rock Run, an Exceptional Value (EV) stream widely hailed as the most beautiful stream in Pennsylvania. The headwaters of Rock Run and Pleasant Stream, another EV stream, emerge from ridge-top wetlands that provide habitat for several threatened or endangered plant and animal species.

The Clarence Moore lands provide habitat for numerous plant and animal species that Pennsylvania has classified as threatened, rare, or at risk (or determined to be candidates for these classifications). Among these species (to name just a few): the timber rattlesnake, northern water shrew, creeping snowberry, northern bulrush, northern goshawk, and yellow-bellied flycatcher. The Clarence Moore lands have been designated an Important Bird Area by the Audubon Society. (See p. 82 of this PDF).

Finally, the Clarence Moore lands are one of only a few large public land areas in north-central PA that have not been opened to gas development, and still contain relatively unfragmented forests.  The DCNR has already leased almost 21,000 other acres of Loyalsock (the forest is around 114,000 acres in all), and has also leased much of the Tiadaghton State Forest to the west and the Tioga State Forest to the north.

FracTracker map of Clarence Moore Lands and Activity

The map above shows the Clarence Moore lands as yellow and blue areas within the Loyalsock State Forest. In the yellow areas, the DCNR has exclusive control of the surface. In the blue areas, Anadarko has the right to use the surface to extract oil and gas. The locations of the yellow and blue Clarence Moore areas are based on documents obtained by PennFuture through the Pennsylvania Right to Know Law (RTKL) and on maps that the DCNR presented at the April 2013 webinar noted above.

The map also shows the oil and gas wells, pipelines, roads, compressor stations, and impoundments that conservationists believe Anadarko has proposed to build in the Clarence Moore lands. The locations of this infrastructure are based on the RTKL documents and on hikers’ observations of survey flags within the Loyalsock State Forest.


Questions and comments about this issue or the June 3rd public meeting can be directed to Mark Szybist: Szybist@pennfuture.org.

Groundwater Complaints to PADEP Compiled by Times-Tribune

In a May 19th article published in the Scranton Times-Tribune, Laura Legere discusses data that she has compiled from a Right-to-know law request to the Pennsylvania Department of Environmental Protection (PADEP).  The data show 969 complaints between 2008 and the fall of 2012.  According to the article, 161 of these complaints include determination letters where PADEP indicates some sort of link between oil and gas activity and impacted groundwater supplies. The Times-Tribune data has been geolocated and mapped by the FracTracker Alliance:


Map showing groundwater complaints to PADEP from 2008 through Fall 2012. Orange-red dots indicate instances where PADEP has established come connection between drilling activity and groundwater impacts, yellow dots mean that PADEP analysis is still pending, and green dots indicate that PADEP has not established such a connection. Please note that the locations are not exact, and that in many instances there are multiple records at a single location on the map. Click on “Fullscreen” to access additional mapping tools.

According to our correspondence with Ms. Legere, there are future plans to release the source documents to the public as well, once needs to protect the privacy of the complainants have been addressed.

We have also added this data to our US Map of Suspected Well Water Impacts:


US Map of Suspected Well Water Impacts. Here, the Times-Tribune data have been represented by light blue dots. Due to crowding from other layers, it is necessary to zoom in to Pennsylvania to see all of the data. For more information on this map, please click on “Fullscreen” and then the “About” tool.

Land-Use Change, the Utica Shale, and the Loss of Ecosystem Services

By Ted Auch, PhD – Ohio Program Coordinator, FracTracker Alliance

In Ohio, Utica Well pads range in size from 5-15 acres. (Estimates for pipeline and retention ponds are unavailable.) That figure gives us the chance to estimate how hydraulic fracturing influenced changes to land-use, ecosystem services, plant productivity, and soil carbon loss.

Working with Caleb Gallemore and his Ohio State University GIS class, we created a data set that estimated the percent cover for each well pad prior to drilling using the USGS and Department of Interior’s 2006 National Land Cover Database (NLCD, 2006) [1].

Figure 1. Ohio’s original vegetation cover and Utica Well permits as of April 30th, 2013

Figure 1. Ohio’s original vegetation cover and Utica Well permits as of April 30, 2013

Accordingly, the state was and is dominated by:

  • mixed oak (from 12,038 mi2 pre-settlement to 7,911 mi2 today) to the east and
  • maple-beech-birch (from 13,917 mi2 pre-settlement to 2,521 mi2 today) to the west stretching into the southeast and northwest corner of Ohio.

During pre-settlement times additional dominant forest types included:

Since industrialization:

  • The faster growing elm-ash-cottonwood has arisen as a sub-dominant forest type currently comprising 1,237 mi2.
  • Additional sub-dominant forest types comprising 100-140 mi2 of Ohio’s land area include aspen-birch (134 mi2), white-red-jack pine (124 mi2), and loblolly-shortleaf pine (108 mi2).

Our results suggest the average amount of deciduous forest [2] disturbed – as a percent of total well pad area – by well pad establishment is 9.8 ± 5.5% per well pad with a range of 4.7% in Stark and Holmes Counties and a high of 24% in Monroe County (Figure 2). With respect to pasture and crop displacement the average is 11.7 and 10.7% per well pad, respectively, with significantly higher between-county variability for crop cover (±5.5% Vs ±3.6%).

Figure 2. Percent Cover across Ohio’s 269 Utica Well Pads assuming an average area of 7.75 acres and the National Land Cover Database 2006 (NLCD 2006) as a proxy for previous land-use.

Figure 2. Percent Cover across Ohio’s 269 Utica Well Pads assuming an average area of 7.75 acres and the National Land Cover Database 2006 (NLCD 2006) as a proxy for previous land-use. – Click to enlarge

Converting this data into ecosystem services requires certain assumptions about plant growth, soil organic matter content, and soil compaction utilizing Natural Resource Conservation Service (NRCS) soil data to model the latter two and established peer-reviewed estimates for plant pattern and process (Follett, Kimble, & Lal, 2000; Lobell et al., 2002; Valentine et al., 2012). The basics of this analysis – assuming subsurface soils are 25% more compact and contain 45% less organic matter than the surface 12-13 inches (Needelman et al., 1999) – demonstrated that well pad establishment has displaced approximately 28,205 tons of surface and 78,348 tons of subsurface soil carbon [3] for a total of 106,554 tons of carbon equivalent to 389,986 tons of CO2.

Additionally, the displacement and/or removal of vegetation – assuming the average Ohio forest is 40-80 years old [4] – has resulted in the annual loss of 1,050, 6,516, and 9,461 tons of crop, pasture, and forest carbon production, respectively. This is equal to 17,027 tons of carbon or 62,319 tons of CO2, which when added to the aforementioned soil loss is equivalent to the CO2 footprint of 25,198 Ohioans [5].

Over the life of these three ecosystem types, well pad establishment displaces 1,021,619 tons of carbon. This equates to 3.74 million tons of CO2 or 230,034 Ohioans, which is roughly 9,000 less people than reside in Akron and Warren combined. Another way way to frame this figure is that it would be equivalent to the eightieth largest US city between Henderson, NV and Scottsdale, AZ.

At CO2’s current valuation this Ohio Utica well pad “carbon displacement” is roughly $18.71 million. However, if we assume this is at the lower end of reasonable CO2 estimates and that a range of $10-75 dollars is more indicative of carbon’s price, then we estimate the value of well pad displaced carbon is more like $41.29-309.68 million.

The true value of Utica well pad carbon displacement is somewhere in this range and entirely dependent on your belief in the feasibility of valuing CO2 emissions. However, these estimates do point to some of the externalities associated with Utica Shale development currently ignored by industry lobbyists and political advocates. There is far more work to be done as it relates to understanding well pads’ influence on ecosystem services, crop productivity, and local hydrology; this is simply an attempt to begin quantifying such effects.


References

Follett, R F, Kimble, J M, & Lal, R. (2000). The Potential of U.S. Grazing Lands to Sequester Carbon and Mitigate the Greenhouse Effect. Boca Raton, FL: CRC Press LLC.

Fry, J, Xian, G, Jin, S, Dewitz, J, Homer, C, Yang, L, . . . Wickham, J. (2011). Completion of the 2006 National Land Cover Database for the Conterminous United States. PE&RS, 77(9), 858-864.

Lobell, D B, Hicke, J A, Asner, G P, Field, C B, Tucker, C J, & Los, S O. (2002). Satellite estimates of productivity and light use efficiency in United States agriculture, 1982-98. Global Change Biology, 8(8), 722-735.

Needelman, B A, Wander, M M, Bollero, G A, Boast, C W, Sims, G K, & Bullock, D G. (1999). Interaction of Tillage and Soil Texture Biologically Active Soil Organic Matter in Illinois. Soil Science Society of America Journal, 63(5), 1326-1334.

Valentine, J, Clifton-Brown, J, Hastings, A, Robson, P, Allison, G, & Smith, P. (2012). Food vs. Fuel: The use of land for lignocellulosic next generation energy crops to minimize competition with primary food production. Global Change Biology Bioenergy, 4(1), 1-19.


Footnotes

[1] The NLCD estimates land cover using sixteen classes at a 98 foot spatial resolution applied to 2006 Landsat satellite data or 4-5 years prior to the first Ohio Utica permit in September, 2010 (Fry et al., 2011)

[2] Primary tree species include red and sugar maple, red and white oak, white ash, black cherry, American beech, hickory, and tulip poplar according to the most recent USFS Forest Inventory Analysis “Ohio Forests 2006”.

[3] Along with roughly 6,536 tons of soil nitrogen assuming an Ohio soil Carbon-To-Nitrogen ratio of 14.6.

[4] Utilizing the USFS’s Forest Inventory and Analysis EVALIDator Version 1.5.1.04 tool we determined that 62% of Ohio’s oak-hickory, maple-beech-birch, elm-ash-cottonwood, and oak-pine forest types, which account for 94% of the state’s forest area, are 40-80 years old.

[5] Assuming 17.3-18.6 tons of CO2 per capita based on Oak Ridge National Laboratory’s Carbon Dioxide Information Analysis Center as cited by the World Bank.

Logbook FracTracker Postcard Front

Winter Summary of the Trail Logbook Project

As the forests beckon us to return to their paths now that winter has subsided (hopefully), let’s take a look at the reports we received over the winter for our Trail Logbook Project.

Impacts Summary

Reports came from several counties, but the majority of complaints focused on the impacts of drilling in Loyalsock State Forest.

Counties:

  • Clinton
  • Centre
  • Lycoming
  • Warren
  • Sullivan

Suspected Causes:

  • Existing gas line
  • Shallow gas wells
  • Truck traffic
  • Pipeline construction
  • Drilling/hydraulic fracturing
  • Impoundment
  • Seismic Testing

Main Trails Affected:

  • Loyalsock State Forest trails
  • Eddy Lick Trail Loop
  • Minister Creek Trail

Impacts Reported (in descending order according to frequency):

  • Unpleasant odors
  • Confrontation with gas company employees, contractors, security personnel
  • Noise impacts
  • Potential degradation/contamination of a stream, spring, lake, or pond, brine in the water at ANF pump
  • Visual impacts (degradation of scenery)

Logbook Quotes

Drilling has largely overtaken this tract of Loyalsock State Forest. I would say that drilling has completely eclipsed the recreational aspect of the tract. Indeed, the tract seems to have been transformed into an industrial forest. I came here for hiking and nature photography, but I felt as though I were a guest on Seneca-owned land, not a visitor to public land paid for by the citizens of Pennsylvania. I noticed no other visitors in the tract, too; everyone I saw was a Seneca employee.   The scenic vista on Bodine Mountain Road (noted on the Loyalsock State Forest map) was less than scenic when I visited; many drilling pads (some near, some far) were seen. The noise from trucks and compressors also diminished the recreational aspect. I won’t return here until most of the drilling ends.

This stream, Minister Creek, is a “Safe” zone for Brook Trout. It now has areas of bubbles and a thin oil sheen on its surface in addition to the Brine taste at the pump.

While setting up campsite just off the Loyalsock Trail at the old CCC Camp on Sandstone Lane, I heard an approaching Crew Truck with a loudspeaker blasting radio conversation with supervisors.  As the Lane had been damaged in recent storms, they tried to drive thru a meadow and right thru my Campsite.  There was no opening in the trees wide enough to pass and I told them so.  They went back to the lane and bored thru the rutted, flood-gouged lane past my camp…

Recommendations from Citizen Reports

Where roads are narrow, especially in forested areas, there are often checkpoints set up by the operators in order to control two-way traffic. Often signs are not sufficiently visible/present/clear, so motorists may not realize the new rules. In Loyalsock State Forest, this has been an issue. As such, below are recreationalists’ recommendations regarding ways to reduce or avoid the issues currently arising from gas operations in this and other public areas:

  • Seneca Resources Corp. and the DCNR should work together to better educate visitors on the need to stop at every checkpoint in this tract of Loyalsock State Forest (or in any forested area that is frequented by recreationalists).
  • At each of the two entrances (Hagerman Run Road and Grays Run Road) to the tract from Pennsylvania Route 14, post a large, prominent sign about the need to stop at every checkpoint for two-way traffic control;
  • Post clearly visible signs at every checkpoint; and
  • On the DCNR Web site in the Advisories section of the Loyalsock State Forest page, post information about roads affected by two-way traffic control and the need to stop at checkpoints. (Currently, information about such roads is posted on the Road Advisories page on the DCNR Web site, but accessing this page from the home page is challenging. Also, the Road Advisories page doesn’t mention that motorists need to stop at checkpoints.)

More Information

Visit the Trail Logbook Project landing page for more information about this initiative, our partners, and to submit your own report.

US Map of Suspected Well Water Impacts

Launch of National Mapping Project Designed to Show Possible Impacts of Oil and Gas Drilling on Well Water

FOR IMMEDIATE RELEASE
US Map of Suspected Well Water Impacts
Contacts: Brook Lenker, Executive Director, FracTracker Alliance, (717) 303-0403; and
Samantha Malone, Manager of Science and Communications, FracTracker Alliance, (412) 802-0273

May 1, 2013 – The US Map of Suspected Well Water Impacts is a project that will attempt to piece together recent complaints of well water quality impacts that people believe are attributed to unconventional gas and oil operations. Research has demonstrated potential risks to ground and drinking water posed by faulty well casings, surface spills, and hydraulic fracturing. From across the country, in areas where gas and oil development is occurring, accounts of possible well water contamination have been reported but not been collected all in one place – yet. The FracTracker Alliance and cooperating organizations are providing that opportunity.

Inspired by other “crowd-sourced” data and mapping projects, this project aims to collect ongoing stories, narratives, and data from individual homeowners living on well water near drilling operations and map the general location of these reports online.  The first version of the dynamic map (shown below) is available at www.fractracker.org/usmap.

US Map of Suspected Well Water Impacts - V1

US Map of Suspected Well Water Impacts
Read more about Version 1 of the map

Once received, submissions will be reviewed to the extent possible by cooperating researchers and organizations. Not all reported cases of water contamination, however, have been or will be able to be substantiated. According to Brook Lenker, Executive Director of FracTracker Alliance:

The reports we are collecting are not necessarily indisputable evidence that drilling has contaminated drinking water sources. Some accounts are irrefutable. Others remain unsubstantiated, but that doesn’t mean the well owner isn’t experiencing serious problems. Even where proof may be elusive, perception of risk can tell us much about an issue and the level of concern by the community.  This information will likely help to identify pre-existing problems or conditions that were not previously well known.  Such outreach is needed to permit citizens, local agencies, and others to work together to address pre-existing concerns, improve local regulations or standards, conduct proper baseline testing and monitoring, and make informed decisions.

As unconventional natural gas and oil extraction expands internationally, an Internet-based project like the US Map of Suspected Well Water Impacts can help to share on a global scale how people in the U.S. view – and may be impacted by – unconventional drilling. If everyone contributed their stories, the public’s understanding of gas and oil extraction’s impacts on well water could expand dramatically.

Anyone wishing to submit their story should visit www.fractracker.org/usmap or call (202) 639-6426. A complete list of current project partners is available on the website.

# # #

Downloadable Press Release (PDF)
Read more about Version 1 of the map

US Map of Suspected Well Water Impacts - V1

Introducing the US Map of Suspected Well Water Impacts

About the Map

The FracTracker Alliance has been working with nine different community partners on a project to map instances where oil and gas activity are suspect of impacting groundwater supplies in the United States. The US Map of Suspected Well Water Impacts is now ready for its initial release, and consists of the following data layers:

  • Visitor Submitted Impacts. This layer consists of viewer submitted form data describing suspected incidents of groundwater contamination by oil and gas extraction and related industries.  The locations have been determined using the centroids or geometric center-points of the zip code in which the suspected incident occurred.  If you are aware of additional incidents, please submit them here.
  • Pipeline Incidents Contaminating Groundwater. This data layer includes hazardous liquid pipeline incidents that were indicated as resulting in groundwater contamination between 1/1/2010 and 3/29/2013.  The data were obtained by the US Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA).  The data have been altered by the FracTracker Alliance in that it only includes incidents leading to groundwater contamination, and by the removal of several dozen columns of data about the incident for the sake of brevity.  There are 30 incidents on this list.
  • NRDC Suspected Contamination Events. Amy Mall of the Natural Resources Defense Council compiled a list of 37 incidents where hydraulic fracturing is suspected of contributing to groundwater contamination.   The list was compiled in December 2011, and each entry is linked to news reports of the event.   This layer was mapped by the FracTracker Alliance based on the centroids or geographic center-points of the municipality, county, or state of the incident, depending on the best information available.
  • List of the Harmed Suspected Water Incidents. Jenny Lisak, co-director of the Pennsylvania Alliance for Clean Water and Air, maintains a list of people claiming to be harmed by hydraulic fracturing or related processes, called the List of the Harmed (LotH).  This data layer is based on the February 23, 2013 update of the list, and contains only the events in which water is the suspected exposure pathway.  This data was mapped by the FracTracker Alliance based on the centroids or geographic center-points of the municipality, county, or state of the incident, depending on the best information available.
  • NM Pit Contamination Events. This layer consists of events where the New Mexico Oil Conservation Division determined that substances from oil and gas pits contaminated groundwater.  Altogether, there are 369 incidents included in the data.  The document on which this map was based was published in 2008.  This data was mapped by the FracTracker Alliance based on the centroids or geographic center-points of the PLSS section, meaning that the points should be accurate within 0.72 miles.

US Map of Suspected Well Water Impacts – Version 1

It is important to note that the standard for inclusion in the map is simply whether or not someone suspects that well water has been impacted by oil and gas extraction-related activity.  Specifically, items on the Visitor Submitted Impacts, NRDC Suspected Contamination Events, and List of the Harmed Suspected Water Incidents should be thought of as perceived  impacts by oil and gas activity, not confirmed ones.  The NRDC and LotH lists were built with links to one or more media reports about the event.

On the other hand, the New Mexico document on which the pit contamination event layer was built simply says, “Cases Where Pit Substances Contaminated New Mexico’s Ground Water,” and it is worth noting that it was published by a state regulatory agency. Likewise, the PHMSA pipeline data is published by an administration within the US Department of Transportation.  Between these two layers, there are 399 incidents with the authority of a regulatory agency behind them.

Future versions of this map can be found on the project’s landing page.

Negative Health Impacts & Stressors Perceived to Result from Marcellus Shale Activity

Identified by Researchers at the University of Pittsburgh Graduate School of Public Health

By Kyle Ferrar, MPH – DrPH Candidate, Environmental and Occupational Health Department, Graduate School of Public Health, University of Pittsburgh

The potential for negative health impacts to result from unconventional natural gas development activities, such as hydraulic fracturing (deemed “frac’ing”) occurring in the Marcellus Shale basin, is a highly debated and contentious issue.  To resolve this issue public health and medical professionals will need to conduct a large-scale epidemiological study – one that monitors the lives and health of a large sample of people for an extended period of time.  Such a study should test to see if proximity, or closeness to unconventional natural gas development, such as frac’ing, causes negative health impacts.  Such a study has not yet been officially proposed in Pennsylvania, much less funded, but researchers at the University of Pittsburgh’s Center for Healthy Environments and Communities (CHEC) believe such a study will be conducted in the future.

New peer-reviewed research released by the CHEC provides background data for that kind of study.  The research documented 59 unique health impacts, or “symptoms,” and 13 “stressors” perceived to result from Marcellus Shale development.  Over time, symptoms and perceived health impacts increased for the sample population (p<0.05), while stressors resulting from Marcellus Shale activity remained consistent (p=0.60).  The study group was a biased sample population, meaning the participants were not randomly selected.  Rather, the participants were already concerned by or interested in issues associated with this industrial activity.

Using community based participatory research methods, researchers from CHEC, along with researchers from FracTracker while it was still a project at CHEC, engaged community members with in-depth interviews.  Mail surveys have been conducted by other researchers in Colorado and Wyoming, but this is the first research to use an ethnographical, in-person approach.  Furthermore, this is the first peer-reviewed and published research that describes symptoms in those who believe their health has been affected.  The six most reported symptoms are reported in Table 1, with stress being the most commonly reported health effect.

The article contributes several new findings to this field of research, including evidence about what people report as stressors.  Contributions of stress to negative health effects are well documented in the literature, known as allostatic loads.  The six most commonly reported “stressors,” or sources of stress, are reported in Table 2.  Particularly notable is the very high percentage of the group that report issues such as being lied to that presumably would be corrected if the industry became more transparent and responsive.  The article also reports on the longitudinal nature of the perceived health impacts and stressors. Longitudinal refers to the fact that the data were collected over time, not just once. Follow-up interviews conducted 19-22 months after the initial interviews showed that the number of perceived health impacts reported by participants actually increased over time, while the number of stressors reported remained consistent.  This contradicts industry’s argument that the problems are mainly caused by seeing and hearing drilling activity, and that as the intensity of activity diminishes over time so will the symptoms and stressors. While this research does not answer the larger question of whether negative health effects are associated with Marcellus Shale development, it demonstrates a need for future studies to be conducted within these particular communities and supports the more difficult task of embarking on a broader epidemiological study.

Table 1. Most reported symptoms with the percentage of participants reporting said symptom.

Symptoms Session 1 (n=33)
Stress 76%
Rashes 27%
Loss of sleep 27%
General illness 24%
Headaches 24%
Diarrhea 24%
Shortness of breath 21%
Line Table 2. Most reported “stressors” participants associated with Marcellus Shale development, with the percentage of participants reporting said stressor.

Stressor Session 1 (n=33)
Denied or provided false information 79%
Corruption 61%
Concerns/complaints ignored 58%
Being taken advantage of 52%
Financial damages 45%
Noise pollution 45%

 

About the Journal Article

Assessment and longitudinal analysis of health impacts and stressors perceived to result from unconventional shale gas development in the Marcellus Shale region <-- Note: This link is presently not connecting to the article on IngentaConnect.com. We will update the link once the article becomes available again on their site. Authors: Kyle J. Ferrar; Jill Kriesky; Charles L. Christen; Lynne P. Marshall; Samantha L. Malone; Ravi K. Sharma; Drew R. Michanowicz; Bernard D. Goldstein Source: International Journal of Occupational and Environmental Health

Unconventional Shale Drilling: What we know, What we don’t know, What we need to know to move forward

Archived

This post has been archived.

By Ted Auch, PhD – Ohio Outreach Coordinator, FracTracker Alliance

A Conference Retrospective

Communities, NGOs large and small, local governments, and even next door neighbors and/or families are dealing with long-term potential and realized environmental, economic, health*, and social equity damage from the activities of the gas industry in Ohio and beyond. These impacts were vetted at a conference (PDF) recently convened in Warren, OH by FreshWater Accountability Project Ohio, The FracTracker Alliance, and the Buckeye Forest Council. The title of the conference was “Unconventional Shale Drilling: What we know, What we don’t know, What we need to know to move forward.” The premise was to bring together a forum of diverse subject matter experts from academia, industry, government and private organizations to discuss and prioritize – using a knowledge-based approach – the various major issues relating to energy extraction that are facing local, state and national agencies and private citizens.

Conference attendees heard from a variety of researchers and community activist about their successes and failures, data needs, and expectations for how to leverage the conference gathering into a relatively cohesive and largely ego free movement. One highlight was a presentation and informal discussion with Deborah Rogers, former Merrill Lynch and Smith Barney investment banker, Dallas Federal Reserve Advisory Council member, current U.S. Extractive Industries Transparency Initiative (USEITI) advisory committee member, and the woman behind the Energy Policy Forum. Ms. Rogers’ keynote presentation “Shale and Wall Street: Was the Decline in Natural Gas Prices Orchestrated?” focused on the regulatory and high finance parallels between the early aughts real-estate bubble and the current US shale bubble’s red queen predicament (what’s this?) forcing industry to acquire shale assets and repurchase shares in an illusory attempt to inflate their balance sheets and placate Wall Street expectations (while simultaneously overestimating reserves by 400-500% and experiencing 6.5% recovery efficiencies). Ms. Rogers pointed to the fact that the US is home to 181,000 oil and gas jobs Vs. 183,200 renewable energy jobs, however, they account for 45% and 15% of total energy generation capacity, respectively, with the latter “providing significantly more jobs per kilowatt capacity than oil and gas.”

Ms. Rogers was followed by University of Pittsburgh professor Dr. Bernard Goldstein, Biological Mimetics, Inc. President and CEO, Peter Nara, with public health and environmental concerns presentations, respectively. Julie Weatherington-Rice, an OSU adjunct faculty geologist, delivered an Ohio- focused talk on the legal and public policy implications of drilling in public water well fields. Dr. Weatherington-Rice gave an encore performance the following day focusing on shale gas waste, public water supplies, Ohio EPA’s September 2012 advisory regarding disposal of fracking waste in the Great Lake’s waste landfill facilities, and the dangers associated with technologically enhanced radioactive material (TENORM). Dr. Rice was followed by presentations on sustainable communities via “Local Self-Government and the Rights of Nature” by Tish O’Dell of the Community Environmental Legal Defense Fund (CELDF) and Matt Nisenoff exploring the non-binary nature of Ohio advocacy. Mr. Nisenoff addressed the need for persistent organizing and “entering the political ring as candidates rather than voters.”

One of the most novel components of the conference was the presentation by Rumi Shammin, an environmental studies professor at Oberlin College who brought to the floor the concepts of ecosystem services and ecological economics or the monetization of ecological pattern and process [1]. These two lines of research are new to the hydraulic fracturing conversation and potentially integral to policy formulation, community outreach and academic-citizen scientist collaboration in Ohio.

Bowling Green State University professor Andrew Kear offered the final presentation titled “Unconventional Politics of Unconventional Gas: Environmental Reframing and Policy Change.” The presentation highlighted his PhD dissertation work focusing on unlikely bedfellows in the mountain west shale plays and the types of lessons he thought applied to Ohio’s shale fracturing discussion.

The conference closed with attendees coming together to identify the explicit knowns, known unknowns, and unknown unknowns in Ohio relative to economic, environmental, social integrity, and health issues. The results of these break-out groups and discussion will be made available to the public in the next two weeks.

Next steps include crafting two to three white papers, writing a peer review publication, implementing effective collaboration strategies, planning future conferences, and developing policy recommendations. The ultimate goals are to promote fact-based transparency, best in class technologies, and create healthy and sustainable energy resources.

In the face of industry and regulatory inertia that continues to push back against transparency and local control, the conference underscored the need for more education, data, and far more research – all issues of special interest to the FracTracker Alliance – while bridging rifts and fortifying existing bonds.

Contact Information

For more information and notices as to resulting products, please contact:

  1. Leatra Harper, FreshWater Accountability Project Ohio,
  2. Ted Auch, PhD, The FracTracker Alliance, Ohio Program Coordinator
  3. Peter Nara, PhD, Biological Mimetics, Inc.
  4. Julie Weatherington-Rice, PhD, Adjunct Faculty The Ohio State University and Bennett & Williams
  5. Nathan Johnson, Buckeye Forest Council

* Keynote speaker Deborah Rogers cited health impact costs in the Barnett, Fayetteville, and Marcellus Shale of $73, 33.5, and 32 million per annum.


[1] Arrow et al., 1995; Costanza et al., 1997; Costanza et al., 2000; Costanza, Wainger, Folke, & Mäler, 1993; Daily et al., 1997; Krantzberg & Boer, 2006; Ruhl, 2006

A Year in the Life of Ohio’s Utica Play

The Ohio Utica play has taken off in the last calendar year, jumping from 160 permitted wells as of March 2012 to 453 since then. This equates to 1.24 permitted wells per day. (Note: The state’s less exploited Marcellus shale had 13 permitted wells a year ago with an increase of 7 since then.) A year ago Ohio was home to 50 “drilled” wells and is now home to an additional 80 “drilled” wells (Figure 1). Meanwhile 0.65% and 1.14% of permitted wells are what Ohio Department of Natural Resources (ODNR) calls “Inactive” or “Not Drilled” with the latter being relatively similar a year ago vs. today with 3 and 4 “Not Drilled” wells, respectively. According to the latest ODNR data 54 Utica wells were permitted as of 4/1/2012 vs. 342 since then. Plugged wells constitute 1.63% of all Ohio Utica wells although the industry appears to be increasing efficiency with respect to plugging having experienced 7 “Plugged” wells as of 4/1/2012 and only 3 since. Conversely, wells that are “Producing” have declined from 25.63% (41 “Producing” wells) of all permitted wells to 1.32% (6 “Producing” wells) of all permitted wells since then with the latest reported producing well being a Mountaineer Keystone well in Windham Township, Portage County.

The permitting process has continued along its exponential path since permitting began September 28, 2010 (Figure 2). The gross average number of permitted Ohio Utica wells per month in the last five months is 39 with a total of 195 permitted since November 2012. The quarterly permit average has increased by an order of magnitude of 4.2 permits per month between September 2010 and 2011 to 39 per month since September 2012. In recent months Washington county was added to the list of Ohio counties home to Utica hydraulic fracturing permits, while Carroll remains the state with the most Utica permits followed by Harrison, Columbiana, Guernsey, and Jefferson/Noble with the average number of Utica well permits across the 22 counties home to at least one permit being 28 per county with six counties above and sixteen below this mean (Figure 3). In the last year the four counties that have entered the Utica conversation are Trumbull, neighboring Holmes and Wayne, and Washington, with 4, 3, 1, and 1 Utica permit as of April 1st, respectively. Meanwhile five other counties have seen no increase in Utica permits including Muskingum, Knox, Ashland, Geauga, and Medina. Conversely Belmont County has seen a 21-fold increase in Utica well permits followed distantly by Harrison, Guernsey, Noble, and Coshocton counties all of which have experienced ≥5-fold increases.

The average number of people per Utica well across the aforementioned 22 counties is 31,808, while the average number of wells per square mile is 0.066. The range is quite broad for both variables ranging from 0.0018 wells per square mile in Wayne – home to the Wayne National Forest – to 0.59 wells per square mile in Carroll County, with the one recent Washington County well placing it 13th out of 22 counties. The inverse is the case for people per well with Medina County, home to the highest number of people relative to Utica well permits with 172,332 people per well (vs. 124-563 people per well in Carroll, Harrison, Noble, and Monroe counties).  Since last we conducted this type of analysis in late January the valuation of Ohio’s major Utica players has actually increased by 11.7%. This is a particularly complex situation considering that Atlas Noble the owner of 6 Utica wells has actually gone private for a variety of reasons and Chesapeake Energy has ousted its CEO Aubrey McClendon due to “philosophical differences and a pending SEC investigation. Meanwhile, Wall Street-types:

… expect well results to vary greatly, given 2012 drilling activity across many fringe areas of the play. We believe weak results from other operators are likely to validate that Gulfport remains the most exposed operator. Source

Additionally, the repeated delay in 2012 production numbers scheduled for the 1st of April is creating layer upon layer of uncertainty leaving everyone guessing and relying on 2011 production numbers. This leaves public sentiment worried about the unsustainability, uncoordinated, and unbalanced nature of both Ohio’s regulatory framework and highly Utica exposed and/or leveraged balance sheets. Meanwhile Wall Street analysts are contemplating whether market forces, expectations, reality, or collusion is to blame. Our current model of potential Utica production in the form of barrels of oil equivalent speaks to small and discrete highly productive zones in Belmont, Noble, Guernsey, Morgan, and Muskingum counties, rather than the originally estimated zones of highest production in Carroll and Columbiana. An additional hotspot appears to be located in Fairfield, Perry, and Hocking counties. However, due to insufficient data quantity, quality, and methodology, and transparency from ODNR and industry, the opportunities to conduct such exercises are still accompanied by substantial uncertainty in the form of high signal-to-noise resulting from scant and unreliable data. The hope, herein and on Wall Street, is that ODNR and industry will begin to make their production data available in real-time.

This is an especially important consideration given that the aforementioned regulatory environment here in Ohio – as well as the relatively generous severance taxing system[1] – has reached a point that even industry/supply-side think tanks like The Fraser Institute in Canada have determined “the extent of investment barriers (based on All-Inclusive Composite Index values)” are as good as they are ever going to get; Ohio trails only Mississippi in a global investment barrier ranking of 146 countries, US states, and Canadian provinces. Furthermore, in one year the conditions for doing largely hydrocarbon-related business in Ohio improved so much between 2010 and 2011 that Ohio jumped up the league tables from 12th to 2nd, according to the institute’s 2011 “Global Petroleum Survey.” This loosening of regulations, combined with decreasing data quality and availability, is the primary concern of The FracTracker Alliance in Ohio.

Utica Permit activity by status to April 1, 2013

Figure 1: Utica Permit activity by status to April 1, 2013

Figure 2. Cumulative and Per Month Utica Permits to September 2010 through March 2013

Figure 2. Cumulative and Per Month Utica Permits to September 2010 through March 2013

Figure 3. Utica Permit Count by County from September 28, 2010 to April 1, 2013

Figure 3. Utica Permit Count by County from September 28, 2010 to April 1, 2013

Figure 4. Utica Permits Per Square Mile and People Per Well by County from September 28, 2010 to April 1, 2013

Figure 4. Utica Permits Per Square Mile and People Per Well by County from September 28, 2010 to April 1, 2013

(Note: This model was constructing utilizing the Geostatistical Analyst Tools “Empirical Bayesian Kriging” tool in ArcGIS)

Figure 5. A map of the current Ohio Shale and Tight Gas Plays, hydraulic fracturing permits in Ohio as of 4/1/2013, and a generalized model of potential production from with light green representing 20 Barrels of Oil Equivalent (BOE) and red approximately 10,000 BOE

Table 1. Distribution of Ohio Utica Shale wells across companies (#, %), Date of First Permit (DFP), and the valuation of the publicly funded companies at their DFP at the close of business 4/9/2013.

     

Company Valuation

Company

#

%

DFP

Share Price DFP

Share Price 4/9/2013

% Change

Anadarko

12

0.019

09/07/2011

69.88

86.70

1.241

Antero

21

0.034

03/23/2012

Atlas Noble††

6

0.010

09/24/2012

31.14

Carrizo

2

0.003

07/26/2012

24.02

26.26

1.093

Chesapeake Energy

389

0.626

12/23/2010

25.61

19.99

0.781

Chevron Appalachia

2

0.003

07/31/2012

109.58

118.71

1.083

Consol Energy

25

0.040

06/17/2011

45.86

33.85

0.738

Devon Energy

13

0.021

11/02/2011

65.46

55.28

0.844

Eclipse Resources

1

0.002

12/21/2012

Enervest

16

0.026

06/30/2011

9.37

8.79

0.938

EQT

3

0.005

09/13/2012

57.76

69.59

1.205

Gulfport Energy

46

0.074

02/28/2012

35.49

48.09

1.355

Halcon

2

0.003

11/02/2012

5.003

7.69

1.537

Hall Drilling

1

0.002

09/17/2012

Hess Ohio

24

0.039

09/28/2010

53.63

73.50

1.371

HG Energy

16

0.026

09/14/2011

Hilcorp Energy

3

0.005

12/14/2012

Mountaineer Keystone

7

0.011

07/13/2012

PDC Energy

9

0.014

05/25/2012

25.67

47.59

1.854

R E Gas Development

13

0.021

03/19/2012

Sierra Resources

3

0.005

07/02/2012

SWEPI

1

0.002

06/20/2012

XTO Energy

5

0.008

04/09/2012

0.28

0.01

0.036

BP

1

0.002

03/20/2013

613

1.083

DFP = Date of First Permit; “—“ not a publicly traded company

†† Atlas Noble has since gone private

Corporations that have reported production numbers as of this post: 1) Anadarko – 3, 2) Chesapeake – 14, 3) Consol Energy – 1, 4) Enervest and PDC Energy – 2, 5) Gulfport – 10, R E Gas Development – 4.


[1] Ernst & Young in a 2011 report found that Ohio’s hydrocarbon taxing rates were the most favorable of the eight states they investigated with a total state and local tax of 1.8% vs. 10.9-11.0% in neighboring West Virginia and Oklahoma, respectively. The average across the seven other states was 9.2% or 5.12 times that of The Buckeye State.