GreenHunter/Coast Guard War of Words — MDN Explains It

war of wordsMDN now believes we have the full story, and a proper understanding, for the current war of words between GreenHunter and the U.S. Coast Guard over the issue of barging produced water, sometimes referred to as brine, on the Ohio River and other inland waterways. On Wednesday MDN brought the news that GreenHunter claimed the Coast Guard has given the all clear to begin barge shipments of brine (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). Yesterday we reported a response from the Coast Guard saying no, they haven’t decided and haven’t given clearance (see Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter). Yesterday GreenHunter, a publicly traded company, filed a statement with the Securities and Exchange Commission (SEC) challenging the Coast Guard’s statement. It all comes down to semantics. MDN has spoken with a barge operator, has read the GreenHunter SEC statement (below), and we now think we know what is happening…
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Philly State Senators Want to Slap Marcellus Industry with 9.9% Tax

are you on drugs?We seriously wonder if some of the legislators that serve in the Pennsylvania State Legislature are on drugs. Seriously. What else can explain comments like those from Pennsylvania State Senator Vincent Hughes (Democrat from Philadelphia) in saying the Marcellus Shale industry currently pays no taxes, that the drilling industry is making PA children “suffer,” and he thinks the industry should be hit with a new 8% severance tax PLUS another 1.9% impact fee. It’s absolutely mind-blowing–like psychedelic mind blowing. Does Hughes live in an alternate universe? Oh that’s right, he’s in the back pocket of teacher$’ union$ and is $imply their tool…
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More on that Range Rig Fire in Washington County, PA

Range Resources dodged a bullet with the fire at a well pad in North Strabane (Washington County, PA) on Wednesday. We now know that a hydraulic line leaked oil and that’s what started the fire. Personnel on site tried to extinguish it but enough oil spread on the rubber well pad liner that the liner itself caught fire–essentially like a huge tire burning. Which is what caused the billowing black smoke in the area. The fire spread and consumed the rig, destroying it, and a couple of trailers parked at the site. Range was in the beginning stages of drilling the well. The bullet they dodged is that no one was injured. Equipment can be replaced–people can’t…
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New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA

Sunoco Logistics has an important new tool in its fight to build the Mariner East 1 and Mariner East 2 pipeline projects in Pennsylvania. Mariner East 1 is already partially up and running but needs the final leg completed that will connect it to the Marcus Hook refinery near Philadelphia (see Range Cuts 2015 Drilling Budget 33%; Mariner East Up & Running!). Mariner East 2 is still on the drawing board. It will be a new 350-mile pipeline, most of it laid next to Mariner East 1 (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The new tool? Sunoco hired Econsult Solutions Inc. to do a proper, independent, rigorous and accurate study of the potential economic impact from the two projects on the PA economy. The study, titled “The Economic Impact of Sunoco Logistics’ Mariner East Projects in Pennsylvania” (full copy embedded below), says the two projects will add $4.2 billion to Pennsylvania’s economy, support more than 30,000 jobs during the construction period, and create 300-400 permanent jobs…
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EQT 2014: Drilled 345 Wells, Production Up 26%, Net Income Up 74%

Lots of EQT news to share today. Yesterday the company pushed out several updates, including a recap of their 2014 operational and financial results–for both the production/drilling side of the company and the midstream/pipeline side. Production sales volume was up 26% for the year over 2013; midstream gathered volume was up 27%; net income was up 74% from a year ago; and they still have an available borrowing credit line of $1.5 billion in the bank. EQT drilled 196 Marcellus wells, 103 Huron wells and 41 Upper Devonian wells in 2014…
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EQT Slashes 2015 Capex Budget 24%, Reduces Drilling Program 45%

Perhaps the biggest news coming from EQT yesterday is the news that they’ve once reduced their capital expenditure (capex) budget for 2015. In December, the company said they would spend $2.5 billion on capex in 2015–down from $2.7 billion spent in 2014—and drill 244 new wells this year (see EQT’s 2015 Plans: 181 Marcellus Wells, 58 UD Wells, 5 Utica Wells). Yesterday EQT whacked the budget again, given the low price of oil and gas. They will now spend $2.05 billion on capex (down 24% from last year) and instead drill 191 wells, as opposed to the 345 wells they drilled in 2014 (down 45%)…
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EQT Proved Reserves Up 29% in 2014, EURs Up 10%

Among the mountain of news pushed out yesterday by EQT is a rundown on the company’s proved reserves, which rose 29% in 2014 to a whopping 10.7 trillion cubic feet equivalent (Tcfe). In their announcement about reserves, EQT mentions that estimated ultimate recoveries (EUR) per well are even higher than they hoped for: EUR of proved Marcellus wells drilled in 2014 averaged 7.9 billion cubic feet equivalent (Bcfe) as opposed to Marcellus wells drilled in 2013, which were estimated at an average of 7.2 Bcfe (up 10%) per well. EUR means the total amount of gas a well is expected to pump over its lifetime. Here’s a rundown on EQT’s reserve numbers, including 3P numbers (proved, probable and possible)…
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New Entrant in the Marcellus: Warren Resources Drilling 2 Wells in 2015

So far as we can tell, Warren Resources, a small driller headquartered in New York City, hasn’t drilled a thing in the Marcellus or Utica Shale (for background, see CEO of Warren Resources Quits, Replaced by Citrus Energy CEO). According to Warren’s recently released 2015 capex budget and guidance announcement, that will change in 2015. Warren plans to drill two Marcellus Shale wells at a cost of $13 million. In fact, one well is already drilled and will be completed in March…
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Spectra Energy Update on Active Projects in the Northeast

On Wednesday Spectra Energy provided their 2014 financial and operational results. Spectra is a large midstream company (pipelines and processing plants) with a large and growing presence in the Marcellus/Utica. Both revenues and earnings were up for the company in 2014, which is interesting. Our attention, however, is in the updates to various pipeline projects they’re building or soon will be building in our neck of the woods, name updates for the NEXUS pipeline, Ohio Pipeline Energy Network (OPEN), Texas Eastern Appalachian Lease Project and other projects located here in the northeast…
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