Deep

Exploration and production companies looking for ways to develop vast natural gas reserves deep within upstate New York’s Southern Tier have faced an “unwelcome” mat in recent years, with a state-imposed drilling moratorium on hydraulic fracturing (fracking), as well as many town council-imposed drilling bans. However, producers now face another threat: the Preservation League of New York State.

Ohio Attorney General Mike DeWine is urging state lawmakers to enact tougher regulations on the oil and gas industry, including higher penalties for violations and requiring operators to not only disclose what chemicals are used for hydraulic fracturing (fracking) but also their precise formulations.

San Diego, CA-based Royale Energy Inc., a publicly held exploration and production (E&P) independent with about 15 MMcf/d of gas production, mostly in Northern California, was the biggest bidder for Alaska North Slope shale oil plays offered last month in a state lease sale.

A Maryland panel is recommending that the state impose both a fee and a tax on shale gas development, as well as shift more costs to industry, but it did not propose specific details for any changes.

Washington state regulatory staff said it plans to recommend deep cuts in Puget Sound Energy’s (PSE) proposed $182 million natural gas and electric general rate increase request. The staff is recommending a total increase of a little more than $40 million annually to the three-member Washington Utilities and Transportation Commission (UTC). Bellevue, WA-based PSE proposed increasing retail gas utility rates by $30 million annually and electric rates by $152 million. Public comments are still being taken by the UTC, which will hold hearings on the rate case Feb. 1 and 15. The proposed rate changes are slated to take effect May 1.

Two monitoring wells specifically installed to test water supplies deep within an aquifer near natural gas drilling locations in Pavillion, WY, found high levels of benzene and other chemicals, including petroleum-related compounds, according to the U.S. Environmental Protection Agency (EPA) Region 8 office.

Two monitoring wells specifically installed to test water supplies deep within an aquifer near natural gas drilling locations in Pavillion, WY, found high levels of benzene and other chemicals, including petroleum-related compounds, according to the U.S. Environmental Protection Agency (EPA) Region 8 office.

As Ohio awaits results of preliminary Utica Shale wells, industry leaders told an audience in Columbus last week that the play, if successful, could revive the state’s manufacturing sector.

Shell Canada Ltd. is looking for a partner to help develop its gassy Chinook leasehold, 102,000 acres in the Nikanassin Formation, a shale play in the Deep Basin of Western Canada.