Marcellus Drilling News

Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

The “Compendium of its Meaning” for NY Fracking
December 5, 2012December 5, 2012

Both sides of the drilling debate in New York are still coming to grips with both the fact, and the way, the state Dept. of Environment Conservation (DEC) filed for a 90-day extension to the fracking rulemaking process—keeping the possibility of fracking alive in New York.

Anti-drillers, never at a loss for things to complain about, mostly complain the DEC’s revised proposed rules don’t indicate where the rules have changed from previous versions (i.e. redline), making them flip back and forth between previous versions and the new version (perhaps they have a case for carpel tunnel syndrome?)…

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Energy Companies | Ohio | Triad Hunter | Washington County (OH)

Washington County, OH’s First Utica Well Slated for 2013
December 5, 2012December 5, 2012

Triad Hunter says it will be the first driller to sink a new Utica Shale well in Washington County, Ohio—and it will happen next year:

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Carroll County | Chesapeake Energy | Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Latest Permits Issued in Ohio’s Utica Shale, Week of Nov 25
December 5, 2012December 5, 2012

Here’s where the latest round permits have been issued for Utica Shale drilling by the Ohio Dept. of Natural Resources, for the week of Nov. 25, 2012:

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Industrywide Issues | Ohio | Regulation | Statewide OH

[Corrected] ODNR Moving to Quarterly Production Numbers for O&G
December 5, 2012December 5, 2012

CORRECTION: MDN has just been alerted by our friends at the Akron Beacon Journal that our information about quarterly reporting coming from ODNR is not correct. The proposed legislation which contained language about filing quarterly updates to production numbers ultimately did not pass the state legislature and therefore Ohio will (for now) stay on yearly reporting—which is unfortunate. Our thanks to Bob Downing for the heads-up on this.

On Monday the Ohio Dept. of Natural Resources (ODNR) issued its annual Ohio Mineral Industries Report. A very small part of that report covers drilling and production for oil and gas in Ohio (see that section of the report below). ODNR has taken a lot of criticism lately over the fact that shale oil and gas production numbers are only required to be filed and reported once per year by drilling companies. ~~Apparently the criticism has prompted ODNR to change the reporting requirement.~~

~~Starting in 2013, the ODNR will require (and will itself) report oil and gas production numbers on a quarterly basis.~~

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Economic Impact | Energy Services | Enterprise Products Partners | Fairfield County | Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines

ATEX Express Ethane Pipeline Will Pay OH Airport $450K
December 5, 2012December 5, 2012

The Appalachia-to-Texas (ATEX) Express Pipeline, a 1,230 mile ethane pipeline which will run from the Marcellus and Utica region to the Gulf Coast is about to ink a deal with Fairfield County, OH Airport to allow the pipeline to run under airport property. If the deal is signed, as expected in the near future, the airport will receive $450,000 to allow the pipeline under its property.

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Anadarko | Energy Companies

Anadarko’s Big Marcellus Growth in Past 4 Years
December 5, 2012December 5, 2012

Anadarko, one of the largest independent oil and natural gas E&P (exploration and production) companies in the world, issued an update yesterday for it’s onshore drilling. Among Anadarko’s onshore drilling locations is the Marcellus Shale, which has shown a dramatic increase in production over the past several years.

Anadarko’s full update is included below. The main point of the update is to crow that they’ve now passed the 100,000 barrels of oil equivalent per day for onshore production (a great milestone to be sure). The interesting thing (to MDN) are the charts that go with the update, which we’ve embedded below. The Marcellus chart shows Anadarko’s massive increase in production from virtually nothing in 2009 to more than 300 million cubic feet feet per day in 2012.

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Dominion Energy | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

FERC Green-Lights 2 Dominion Pipeline Projects in PA
December 5, 2012December 5, 2012

Last Friday, the Federal Energy Regulatory Commission (FERC) issued an “environmental assessment” (EA) covering two Marcellus pipeline projects proposed by Dominion Transmission: The 19-mile Tioga Area Expansion project, spanning five counties in Pennsylvania and New York, and the nearby 3.5-mile Sabinsville to Morrisville project.

FERC’s EA says neither project will adversely affect the environment, giving the projects what amounts to a green light to move forward with construction next year.

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Commodity Price | Crude Oil | Economic Impact | Exporting | Industrywide Issues | NGLs

Rusty Braziel Sketches Scenarios for U.S. NGL/Crude Prices
December 5, 2012December 5, 2012

Russell (“Rusty”) Braziel is one of the country’s most respected authorities on energy information and markets. He’s the former vice president of BENTEK Energy (bought out by Platts in 2010). He speaks, he writes, and he’s now President & Principal Consultant at RBN Energy, LLC.

Rusty presented at the LDC NGL (natural gas liquids) Forum in San Antonio yesterday, and he had some interesting things to say about the future of NGL and crude oil prices in the U.S. When Rusty speaks, people listen.

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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Landowners: Planning for the Tax Man in PA
December 5, 2012December 5, 2012

End of the year means it’s time to consider taxes (bloody awful if you ask us!). If you live in Pennsylvania and if you’ve leased your property for drilling (and perhaps even have royalties from drilled wells), you need to plan for the tax man—especially if you’ve sold your lease rights/property. All we can say is, a) it’s complicated, and b) find a lawyer/accountant to help you.

The law firm of McNees Wallace & Nurick LLC, with offices throughout PA, publishes a monthly newsletter. In the December issue they highlight a recent guidance document from the PA Dept. of Revenue dealing with Marcellus-related transfers and income taxes. If you’re a landowner with leases, you may find it interesting. If you’re a lawyer or accountant specializing in the Marcellus, you’ll definitely find it interesting:

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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Dec 5, 2012
December 5, 2012December 5, 2012

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

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