Chesapeake Sells 882K Acres & 5,600 Conventional Wells in WV, KY

for-sale.jpgChesapeake Energy, which continues to be strapped financially, embarked on a mission to lighten the debt load years ago–first under co-founder Aubrey McClendon, and then more aggressively under his successor, Doug “the ax” Lawler. Many pieces of the company have been sold off: the Oilfield Services division, all of its Haynesville Shale assets, all of its Barnett Shale assets…we could go on. Chessy loves to do land deals. In December 2014 Chesapeake sold off 413,000 Marcellus acres mostly in West Virginia (see Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre). Once again Chesapeake is selling off assets in Appalachia. This time they have cut a deal to sell a mammoth 882,000 acres along with 5,600 operating gas wells in West Virginia and Kentucky. However, the land and wells are in the “shallow” Devonian layer. That is, they are conventional (not shale) wells and acreage. Who’s the buyer and how much is Chesapeake receiving?…
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Virginia Adopts New Frack Chemical Regs – Fracking to Begin?

frack-here-frack-now.pngVirginia Gov. Terry McAuliffe recently approved changes to environmental regulations that requires “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning.” While leftie Big Green groups love the new rules, the drilling industry is working to ensure trade secrets (exact combinations of chemicals) can’t be discovered by using Freedom of Information Act laws. The big news, for MDN, is that with the enactment of these new rules (see a copy below), it appears shale fracking is a huge step closer to happening in the Old Dominion…
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FERC Approves Pipeline to Orange County, NY NatGas Power Plant

stamp-of-approval.jpgThe Federal Energy Regulatory Commission (FERC) has approved a 7.8 mile off-shoot pipeline from the mighty Millennium Pipeline in Orange County, NY that will feed a new natgas-fired electric plant being built in Wawayanda. The pipeline will supply 130 million cubic feet per day (MMcf/d) of Marcellus gas to feed the new power plant. This is the Competitive Power Ventures (CPV) $900 million plant being opposed by rich Hollywood actor James Cromwell, who lives near the plant site (see Actor James Cromwell Arrested Protesting NY Power Plant Site). The plant has been subjected to several frivolous lawsuits, but was OK’d by a judge last year (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). The last hope of the objectors was to appeal to FERC, telling FERC they should not be the ones overseeing the project since the Millennium Pipeline doesn’t cross state boundaries, and it will feed a power plant inside NY–i.e., it’s not an “interstate” but an “intrastate” project that should be overseen by NY authorities. FERC rejected that line of reasoning…
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AEP Gets Approval to Convert OH Coal Electric Plant to NatGas

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The Cardinal Generating Station near Brilliant, Ohio

The Public Utility Commission of Ohio (PUCO) has approved a plan by American Electric Power (AEP) to convert an existing coal-burning electric generating plant in Brilliant (Jefferson County), OH into burning Utica Shale gas. The Cardinal Plant in Brilliant hosts three such coal-fired plants–but AEP only owns one of them. The other two plants, owned by Buckeye Power, will (for now) remain coal-fired. As part of the deal with PUCO, AEP also agreed to either retire or convert two more coal-fired plants in Conesville (Muskingum County), OH to burn natural gas. Strangely, the nubjobs at the Sierra Club are happy with the plan–because it kills off coal. Apparently the Sierra Club is conflicted internally as some of their leaders bash natgas any chance they get…
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Fired DEP Sec. Quigley Blames Sunoco for Mariner East 2 Delays

John Quigley
John Quigley

Last week Sunoco Logistics Partners, builder of the Mariner pipelines, said that Mariner East 2–a $2.5 billion, 350-mile natural gas liquids (NGL) pipeline that will run from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia, carting ethane, butane and propane to the facility from both the Utica and Marcellus region–will be delayed nine months from the original plan due to permit delays (see Sunoco LP 3Q16: Mariner East 2 Delayed Due to Permits). Although officials didn’t go out of their way to blame the Pennsylvania Dept. of Environmental Protection (DEP) for the delays, the implication was there. And that got the former, fired Secretary of the DEP, John Quigley, all fired up. Quigley, talking through a Philly Inquirer stenographer, said (in so many words) it’s Sunoco’s own #$%@ fault. Quigley said Sunoco tried to get the project rubber stamped and did shoddy work in during the permit process–that they have no one to blame but themselves. Yeah, right…
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Supply Chain Co MMR Expanding in SWPA, Eye on Cracker Boom

mmrHey, it’s great when the oil and gas industry is booming (figuratively)–when the drill bits are chewing away at rock and dirt and when fracking is blasting rocks apart. Love it! But it really sucks when the drill bits go quiet–especially for companies in the supply chain, those who sell goods and services to the industry. Obviously it helps to be diversified–to sell your goods and services to customers outside the o&g industry. That’s the approach taken by the prescient MMR Constructors Inc. MMR services a number of industries, but they LOVE the oil and gas industry–upstream, midstream and downstream. MMR, based in Baton Rouge, LA, is building a sizable new office in Lawrence, PA. They sell to the Marcellus/Utica industry. MMR is “hoping” Marcellus/Utica activity picks up again. But what they really have their eye on is the coming manufacturing boom that will follow Shell’s ethane cracker plant, once it is up and running…
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Global Warming Jumps the Shark – Into Maryland Churches

revelation2v4We’ve long held that believing in man-made global warming is an act of irrational faith. In fact, it takes MORE faith to believe in global warming than it does to believe in God. We have long said that global warmists are, in fact, no different from religious zealots. We’re not comparing warmists to sane folks who believe in God, but those who take faith to an extreme–motivating them into rhetoric (and actions) that leave the realm of sanity. Such is it with some (not all) in the man-made global warming movement. Example: Some 40 far left, liberal “faith leaders” in Maryland this past weekend dispensed with delivering the Sunday sermon on God and Jesus, and instead elected to preach global warming hellfire and brimestone. That is, they have forsaken their first love, having been lured away by a false Gospel…
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Warning: Rogue EPA to Illegally Ramrod Regs in Final Obama Days

Gina McCarthy
EPA’s Gina McCarthy doubles down in last days

Barack Obama and his policies were defeated on Nov. 8. Hillary Clinton ran on a platform of continuing Obama’s policies, an Obama third term, if you will. She, and Obama, lost. The American public doesn’t want more of what Obama and his minions have to offer. And yet, Gina McCarthy, Administrator of the Environmental Protection Agency, apparently didn’t get the memo. McCarthy has promised to double down and ram as many Obama anti-growth, anti-energy policies through as she can before she is booted out of her EPA office. That is, she continues to thwart the will of the American public. In our opinion, illegally…
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Nuverra Environmental 3Q16: Still in the Red, but Improving

nuverraNuverra Environmental Solutions is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. In January the company, going through tough economic times, was de-listed from the New York Stock Exchange (see Nuverra Environmental Delisted from NYSE, Now a Penny Stock). Last week the company issued its third quarter update. There was (some) improvement. In 3Q15 the company lost $128 million. In 3Q16 they only lost $38 million–a swing of $90 million to the good. A quick check shows the share price year-to-date has bumped around from $0.15 – $0.20 per share. Not so hot…
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Marcellus & Utica Shale Story Links: Mon, Nov 14, 2016

best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Utica & Marcellus shale permit trends; veterans thrive at Range Resources; spotlight turned on NY AG Schneiderman; oil by railroad seeing big decreases; Dakota Access Pipeline now 84% built, ready early next year; M&A analysis for o&g; former Obama DOE Secretary loves fracking; 5 dangerous government agencies getting chopped by Trump; and more!
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