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PA DEP Says Drilling Did NOT Contaminate Water in Franklin Forks

As Paul Harvey used to say, here is “the rest of the story” about the contaminated well water for three homes in Franklin Forks (Susquehanna County), PA… In December 2011, three families complained to the PA Dept. of Environmental Protection (DEP) that their well water looked and smelled like it was polluted. Since WPX was drilling natural gas wells nearby at the time, and since two of those wells had been cited by the DEP as having substandard well casings, the assumption was the drilling activity was polluting the water wells (see PA DEP Asks WPX to Help Families with Water/Methane Issues for background).

The rest of the story: After a 16-month thorough investigation, the DEP announced yesterday what residents of Susquehanna County already know–the water in Franklin Forks (and indeed most of Susquehanna County) sucks and has sucked for generations. The DEP found, contrary to the bleating of celebrities, that drilling did NOT pollute the Franklin Forks wells. Those wells are polluted from natural causes, the same natural causes that closed a nearby trailer park more than a decade ago (BGD, before gas drilling)…
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WPX 3Q12: $64M Net Loss, But Production in Marcellus up 333%

arrows down and upWPX Energy, a company formed in January 2011 by Williams (created by spinning off the Williams exploration and production division) released their third quarter financial and operational update last week. The report losing $64 million in 3Q12. Most of WPX’s operations and focus has been in plays other than the Marcellus, including a big focus on the Bakken Shale, where they drill for oil, and the Piceance Basin in northwestern Colorado where they drill for wet natural gas.

In comparison, the Marcellus (where they drill for dry natural gas) is much smaller. However, the Marcellus was the only natural gas play in which WPX has production where the numbers went up in 3Q12. Production in the Piceance, Powder River Basin and San Juan Basin all went down between 7% and 16%. The Marcellus? Up an astonishing 333% from 3Q11 (although the overall numbers are still pretty small, see below). WPX reports they have drilled and completed 28 wells in the Marcellus so far in 2012—all of them in Susquehanna County, PA. They have two rigs operating in the Marcellus.

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WPX Energy 2Q12 Results – Marcellus Production Up 21%

WPX Energy, the former upstream drilling arm of Williams spun out into its own company last year, has just reported their second quarter financial and operating results. WPX reports second quarter gas production from the Marcellus Shale is up 21% from the first quarter and continues to rise, although many of their drilled wells in the Marcellus are currently not producing because they’re waiting to be hooked up to pipelines.

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WPX Water Well Test Results for Franklin Twp, PA

methane moleculeLast December, the PA Department of Environmental Protection (DEP) started investigating methane in three water wells in Franklin Township (Susquehanna County), PA. Since there are several gas wells being drilled by WPX Energy a few thousand feet away, wells that were cited for improper casing, the DEP asked WPX to install methane venting systems for the families of the three wells in question while the DEP investigates (see this MDN story). WPX is also investigating, and their results conclusively show the methane in the water wells isn’t coming from WPX’s gas wells.

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The Marcellus “Line of Death” in NE PA

Terry Engelder, Penn State geosciences professor and “father of the Marcellus Shale” once coined the term “line of death” for the point where shale stops being productive. He was specifically talking about the coal region in Pennsylvania where once-upon-many-millennia-ago high temperatures that hardened the anthracite coal also “cooked out” methane natural gas from the shale. Geologists and gas companies know the area around the Lackawanna Syncline—a banana-shaped formation that runs through Luzerne and Lackawanna counties—is likely to be devoid of methane, but what they don’t how is how far from the Syncline the line of death will be found.

We now have another plugged well that helps indicate where shale is unproductive—this one in Sugarloaf Township in neighboring Columbia County:

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PA DEP Asks WPX to Help Families with Water/Methane Issues

The Pennsylvania Department of Environmental Protection (DEP) sent a letter last Friday to WPX Energy (spin-off from Williams) asking them to help three families who live near shale wells being drilled by WPX in Franklin Township (Susquehanna County,  PA). The families’ water wells contain high levels of methane.

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WPX Energy Cuts Back Marcellus Rigs, Focused on Oil & NGLs

Early this year, Williams officially spun off it’s exploration and production operation into a new company called WPX Energy (see this MDN story). The new company inherited one of the top 10 drilling operations in the Marcellus and Utica Shales.

Yesterday, WPX announced their capital spending plans for 2012 and it’s no surprise, given similar announcements from other major drillers, that WPX is scaling back drilling in the Marcellus from seven rigs to three due to the low commodity price for natural gas. WPX is shifting capital resources to the Bakken Shale where they are drilling for oil and to those geographies rich with natural gas liquids (NGLs).

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Williams Gives Birth to WPX Energy

In February of last year, Williams, one of the 10 largest natural gas producers in the U.S., announced that it would split the company and spin out the exploration & production (E&P) business into a new company (see this MDN story). True to their word, the split is now complete, and yesterday WPX Energy, the new company formed to take on the E&P division, began trading on the New York Stock Exchange.

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