natural gas

Environment & Science
4:13 pm
Fri September 21, 2012

Michigan energy company withdraws gas drilling application

The U.S. Forest Service says that Savoy Energy has informed federal agencies it's withdrawing an application to drill below a site called the Mason Tract in Michigan's northern Lower Peninsula.
user {inercia} Flickr

A Traverse City company is abandoning a nearly decade-long effort to extract natural gas in  an environmentally sensitive area. 

The U.S. Forest Service says that Savoy Energy has informed federal agencies it's withdrawing an application to drill below a site called the Mason Tract in Michigan's northern Lower Peninsula. 

Energy
6:54 pm
Thu August 9, 2012

Should Holland’s power plant stop burning coal and switch to natural gas?

James DeYoung power plant in Holland
Lindsey Smith Michigan Radio

Holland’s city owned utility would be better off if it burned natural gas rather than coal in the future. That’s the conclusion of a months-long study released this week.

The city hired an energy consultant firm to figure out which of its many energy options would produce the best return on investment. The firm said natural gas would be the best bang for the buck. The report says that return also considers other factors like the environment.

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The Environment Report
9:00 am
Tue July 31, 2012

Cleaning up a pollution puzzle in Ann Arbor (PHOTOS)

Kevin Lund of MDEQ shows a sample of oil and water he collected when he dug a hole in the bank of the Huron River. The analysis they did on the samples they collected showed that the contamination was coming from the old MichCon manufactured gas plant.
Mark Brush Michigan Radio

The city of Ann Arbor recently spent more than one million dollars rebuilding an old mill race along the Huron River. The Argo Cascades is a series of little waterfalls and pools where kayakers and people floating in inner tubes come to cool off.

But downstream from the Cascades on the other side of the river, there’s a problem.

There's been pollution lurking underground for some time from an old industrial plant, and two years ago regulators found that some of the pollution was making its way into the Huron River.

The days before natural gas

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10:58 am
Tue July 24, 2012

Price fixing in Michigan land deals? Lawmakers call for action in investigation

Lead in text: 
A news investigation found two natural gas companies might have colluded when bidding on drilling rights in Michigan. Reuters obtained e-mails exchanged between officials from Chesapeake Energy Corp. and Encana Corp. The paper says the e-mails show "that top executives of the two rivals plotted in 2010 to avoid bidding against each other in a state auction and in at least nine prospective deals with private land owners." State lawmakers are pushing for resolution with an investigation.
Tue Jul 24, 2012 7:03am EDT (Reuters) - Two Michigan state representatives have called on officials there to step up their investigations into possible collusion between Chesapeake Energy Corp and Encana Corp, following a Reuters report that the energy rivals plotted to avoid bidding against each other in Michigan land deals.
energy
9:00 pm
Wed July 18, 2012

City of Holland takes a long-term look at energy issues

Martin Kushler, Senior Fellow with the American Council for an Energy-Efficient Economy, speaks of the need to invest on conserving energy first.
Lindsey Smith Michigan Radio

Holland City Council adopted guidelines on Wednesday night to handle the city’s long-term energy needs.

The comprehensive plan covers a wide variety of energy issues facing the city over the next 40 years.

Arguably the biggest energy issue long-term is whether the city needs to expand capacity at its coal plant, or maybe modify it to burn natural gas.

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Auto
11:44 am
Tue July 17, 2012

Detroit asked to build a car that runs on natural gas

Honda Honda

Governors of 13 states that produce natural gas are asking Detroit car companies to make them a passenger car that runs on the fuel.

Advances in a drilling technique called horizontal hydraulic fracturing, or fracking, are making natural gas more plentiful.

The drilling technique has plenty of environmental critics, but Colorado Governor John Hickenlooper says it's safe when done properly, and he says natural gas is a better fuel than gasoline.

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Economy
5:26 pm
Tue June 26, 2012

Reuters: Natural gas giants may have colluded in Michigan drilling lease grab

The Utica Shale, seen here, has recently become the target of gas and oil exploration by corporations like Encana and Chesapeake Energy.
Michael C. Rygel Wikipedia Creative Commons

Two of North America’s biggest natural gas corporations, Encana and Chesapeake Energy, are under scrutiny today after the Reuters news agency intercepted at least a dozen emails from 2010 between the competing companies that might show evidence of price-fixing in Michigan’s oil and gas lease market. 

Reuters alleges that the emails suggest top company officials discussed a plan to divide up counties in Michigan auctioning "prime oil- and gas-acreage" in order to avoid a costly bidding competition.

Both companies deny the allegation, though they admit to discussing the possibility of entering into a joint venture in Michigan.

Yesterday, Reuters reported:

Shares of Chesapeake Energy Corp and Encana Corp tumbled Monday after a Reuters investigation showed that top executives of the two rivals plotted in 2010 to avoid bidding against each other in a state auction and in at least nine prospective deals with private land owners.

Following the report, the state of Michigan pledged to determine whether the two energy giants acted two years ago to suppress land prices there.

In Michigan, private land owners can sell the drilling rights on their properties, and the state’s Department of Natural Resources holds auctions to sell state-owned rights called "oil and gas leases" biannually.

Around 2008, this market gained national attention when the Utica and Collingwood Shale oil and natural gas fields drew interest as potential natural gas mother lodes in northeast Michigan. Companies looking to access the reserves thousands of feet underground through a new process called horizontal hydraulic fracturing, or fracking, started purchasing these rights. Bids for the drilling rights per acre soared to record highs in the May 2010 auction. 

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Economy
10:53 am
Sat June 23, 2012

Debate over renewable energy ballot issue heats up in Michigan

Solar? Wind? Geothermal? Oil? Coal? Natural Gas? What's the solution to Michigan's future energy needs? Or, is the real question, How much of each?
Steve Carmody/Michigan Radio

LANSING, Mich. (AP) - Supporters say a ballot measure requiring that utilities get more of their electricity from renewable sources would make Michigan a leader in clean energy and create jobs.

Opponents say it would cost electric customers more money and make it harder to provide reliable energy.

On Monday, opponents with the Clean Affordable Renewable Energy (CARE) for Michigan Coalition plan to ramp up statewide efforts to defeat the issue. They argue the requirement doesn't belong in the state constitution.

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Economy
1:23 pm
Tue May 22, 2012

Report: Michiganders will use less gasoline and electricity this summer

Will you be filling up as often this summer?
(Steve Carmody/Michigan Radio)

Michiganders will use less gasoline and electricity this summer, that's according to the Michigan Public Service Commission.

The state utility regulatory agency issued its annual Summer Energy Appraisal today.

Judy Palnau is the agency’s spokeswoman. She says there are a couple reasons why the public service commission expects gasoline sales will decline about 2 percent this summer in Michigan.

“Part of that is a economy. But part of that is we are also driving more energy efficient vehicles,” says Palnau. 

Palnau says the economy is also a reason why they expect electricity use will dip slightly this summer.

“Our sluggish economy is still a factor in decreasing use of electricity,” says Palnau, though the MPSC expects residential electric use will increase. 

The MPSC study also predicts natural gas sales will decline nearly 5 percent this summer. A mild winter drove down demand among both business and residential natural gas customers.

Environment & Science
12:37 pm
Fri May 11, 2012

Michigan DEQ clarifies comments on drilling accidents

On The Environment Report yesterday, we heard from Michigan Department of Environmental Quality Communications Director Brad Wurfel about his agency's views on the safety of hydraulic fracturing.

In the interview, he said drillers have been using hydraulic fracturing since the 1960's to drill vertical wells. 

We pointed out there are important differences between traditional vertical drilling and a newer method called horizontal hydraulic fracturing. The new method allows drillers to get natural gas that's much deeper underground.

One of the things to note:

With the more traditional, vertical hydraulic fracturing we’re talking about tens of thousands of gallons of water – horizontal hydraulic fracturing uses millions of gallons.

This is water that’s contaminated and cannot be used again.

In the interview, Brad Wurfel said:

"In 50 years and 12,000 wells around the state, we’ve never had to respond to an environmental emergency with hydraulic fracturing."

I followed up with him on this point today, to ask about this leak that my colleague Lester Graham reported on in February 2011:

The Associated Press reports a leak has shut down a drilling operation not too far from Traverse City.

It's not yet clear whether it will damage underground water sources.  It does raise questions as to whether Michigan regulations are adequate to protect the environment while exploiting the gas reserves in the state.

Here is Wurfel's response:

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Environment & Science
10:23 am
Tue May 8, 2012

"No Sale, No Fracking"

Anti-fracking protesters stand outside of Constitutional Hall in Lansing
(photo by Steve Carmody/Michigan Radio)

People opposed to a natural gas drilling technique called hydraulic fracturing protested outside a state office building in Lansing this morning. 

The state is auctioning off oil and gas mineral rights leases for more 100 thousand acres of public land.

The protesters chanted as energy industry and state government officials entered the building where the auction of oil and gas mineral rights leases was taking place.

The protesters worry drillers will use horizontal hydraulic fracturing, or fracking, to extract natural gas in Michigan, potentially contaminating drinking water and causing other environmental problems.

LuAnne Cozma is an anti-fracking activist.  She says state regulations are geared to help the industry, not to protect the people of Michigan.
 
“The gas is drilled…the more gas flows…the more money flows into the (state government) coffers…and that is why we don’t trust the whole process," says Cozma.

The protesters are circulating petitions to put an Anti-fracking question on the November ballot.

Environment & Science
5:48 pm
Mon May 7, 2012

State poised to lease oil and gas rights for public lands

Protesters are expected Tuesday morning outside of a planned auction of oil and natural gas lease rights on public land.

Lease rights on more than 100 thousand acres of public land will be available in the auction in Lansing.

Mary Uptigrove is the acting manager of the Minerals Management Section of the Department of Natural Resources.    She says much of the land on the auction list is there by the request of the drilling industry.

“They may know…areas where… current development is occurring….and they want to explore for additional development,” says Uptigrove. 

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Environment
5:12 pm
Fri May 4, 2012

As fracking debate continues in Michigan, Obama weighs in

A natural gas well.
World Resources Institute

Hydraulic fracturing or "fracking" has created no shortage of controversy recently. And as Michigan Radio's Rebecca Williams reported last week, debate over this controversial method of extracting oil and gas from deep inside shale deposits has made its way to the Michigan statehouse.

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Environment
9:00 am
Thu April 26, 2012

Lawmakers debate future of "fracking" in Michigan

A gas drilling rig in Appalachia.
User Meridithw / Wikimedia Commons

Hydraulic fracturing is getting some attention this week in Lansing.  You’ve probably heard it called fracking.  It’s a method of drilling for natural gas.

Drillers use fracking to get to the gas that’s trapped in tight shale rock formations below the water table.

Fracking pumps a mixture of water, sand and chemicals into a well under high pressure to force open the rock and extract the gas.

In Michigan, drillers have used the fracking method for more than 50 years and the state regulates the industry. 

But what’s new... is that drillers want to turn their drills and dig horizontally along the shale rock.  That makes the well site much more productive.  But it also uses a larger amount of chemicals and much more water - anywhere from a few million gallons of water to as much as eight million gallons of water per well.  After it’s used, that water is usually disposed of in deep injection wells.

Right now in Michigan, there are two experimental wells that are using the horizontal fracking method.

This week the Michigan House of Representatives’ Subcommittee on Natural Gas put out a report encouraging more natural gas production in the state.

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Politics
3:44 pm
Tue April 24, 2012

"Fracking" debate comes to Lansing

A gas drilling rig in Appalachia.
User Meridithw Wikimedia Commons

Michigan politicians are beginning to wrestle with an issue that's proven to be contentious in other parts of the country.

"Fracking" or hydraulic fracturing is a controversial method of extracting natural gas by pumping water, sand and chemicals into deep underground wells. Both opponents and advocates of the process have started taking action in the state legislature.

The Associated Press writes that "House Democrats on Wednesday plan to discuss a bill that would regulate [fracking]," while "the House's natural gas subcommittee released a report Tuesday encouraging more natural gas production."

An official from Gov. Rick Snyder's administration says the governor is reviewing both the bill and the report.

Some exploratory drilling has already occurred in Michigan's Lower Peninsula.

Take a look at the video below to see an animated view of the fracking process:

-John Klein Wilson, Michigan Radio Newsroom

Environment
1:32 pm
Mon March 12, 2012

Gas company plans new pipeline under St. Clair River

Bluewater Gas Storage plans to build a pipeline under the St. Clair River
user cseeman Flickr

Plans are underway for a natural gas company to construct a pipeline under the St. Clair River into Canada, stretching some 1,500 feet.

More from the Associated Press:

"A bike path in Marysville will be closed to the public as Bluewater Gas Storage LLC conducts the work. The project is expected to last about a month. The bike path will be used as a staging area, rather than using people's yards or driveways."

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Economy
10:25 am
Mon October 17, 2011

Consumers Energy natural gas users will spend less this winter

Blue Flame Gas inc.

Consumers Energy says its natural gas customers will be paying less this winter to heat their homes.  

Dan Bishop is a Consumers spokesman.   He says more plentiful supplies are leading to a 3 percent cut in natural gas prices.   

“In recent years there’s been a large amount of new natural gas discoveries in the United States and in Canada.  And that extra increase of supply has really put downward pressure on prices," says Bishop.  

Environment
10:28 am
Tue April 5, 2011

Landowners sue gas companies over leases

Natural gas drilling rig in Wyoming
Photo courtesy of the Bureau of Land Management

Last May, oil and gas companies spent hundreds of millions of dollars buying up rights to drill in Michigan. By summer, private landowners in northern Michigan had signed leases promising record payments to drill on their land. But by the end of the year, the frenzy over the new gas play had fizzled. And, as Bob Allen found out, hundreds of people were claiming they’d been cheated.

The first person to file suit against the gas companies in Emmet County is Mildred Lutz.

A sturdy 92 years old, she still keeps a garden and cans her own vegetables.

Last summer, a man knocked on her door and offered to pay her almost a hundred thousand dollars for the oil and gas deep underground beneath her farm.

Mildred had just lost her husband of sixty-nine years, Carl. And she thought the money would come in handy for a whole list of expenses, including funeral costs. So after talking it over with her five children, she signed a lease and took the document to the bank in Alanson to be notarized.

She never heard another word from the oil and gas developers and she never got paid.

And how does she feel about that?

“Well, not very good. I don’t know, I’ve always kind of had the feeling of trusting a lot of people, I guess. I hate to see people being dishonest. When you do that, you’re just really hurting a lot of people that were depending on this.”

Attorney Bill Rolinski says he’s heard from a lot of people who ended up in the same boat as Mildred Lutz.

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Environment
10:37 am
Fri February 11, 2011

Fracking leak in Michigan

Since producing a Michigan Watch series on the "hydraulic fracking" boom in Michigan last September and October on Michigan Radio, not much has been said or done about this method of drilling for natural gas.

A leak has now put the issue back in the news.

The Associated reports a leak has shut down a drilling operation not too far from Traverse City.

It's not yet clear whether it will damage underground water sources.  It does raise questions as to whether Michigan regulations are adequate to protect the environment while exploiting the gas reserves in the state.

Event
10:57 am
Wed January 12, 2011

Reports: Natural gas explosion in St. Clair County

There was a explosion at a natural gas storage facility in St. Clair County this morning.

The Detroit Free Press reports:

An equipment malfunction lead to the explosion just before 9 a.m. at Blue Water Gas Storage on Wales Center Road near Rattle Run in Columbus Township, said Joanne Alberty, who works in the assessing office for Columbus Township.

“There was a loud boom at the township hall,” Alberty said. “The whole building shook.”

The Times Herald reports that "eleven people — six employees and five contractors — were at the facility when the incident happened."

One person was treated for minor injuries. The Michigan Public Service Commission has been called to investigate.

St. Clair county Emergency Management Director Jeff Friedland is quoted as saying the explosion was a "very minor event."

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