Marcellus Drilling News

Accidents | Butler County | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines

Explosion, Fire at Revolution Pipe Compressor in Bulter County, PA
January 3, 2022January 3, 2022

Energy Transfer’s (ET) Revolution Pipeline in southwestern Pennsylvania runs through Bulter, Beaver, Allegheny, and Washington counties. The 24-inch gathering pipeline shifted and exploded in September 2018, just as it was entering service (see Revolution Pipeline Near Pittsburgh Explodes – Home & Barn Destroyed). After more than $30 million in fines, court actions, and outright acrimony, the Pennsylvania Dept. of Environmental Protection (DEP) finally allowed ET to fix the problems and bring the pipeline back online in March of 2021 (see PA DEP Finally Allows Revolution Pipe to Restart – After $125K Fine). On Wednesday, Dec. 22, 2021, the “Galaxy” compressor station in Butler County that is part of the Revolution system experienced an explosion and fire during “pigging” operations.
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Bradford County | Energy Companies | Industrywide Issues | Lycoming County | M&A | Pennsylvania | Repsol | Rockdale | Tioga County (PA)

Repsol Buys Rockdale PA Assets Out of Bankruptcy for $222M
January 3, 2022January 3, 2022

In September MDN broke the news that Rockdale Marcellus had filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Western District of Pennsylvania (see NEPA Driller Rockdale Marcellus Files for Chapter 11 Bankruptcy). On Dec. 16 an auction for Rockdale’s assets was held in Dallas, Texas. The highest bidder and winner was Repsol, buying substantially all of Rockdale’s assets for $220 million in cash, plus the assumption of $2 million in debt owed to trade creditors. Last Wednesday, Dec. 29, the U.S. Bankruptcy Court for the Western District of Pennsylvania approved the auction results and sale to Repsol.
Read More “Repsol Buys Rockdale PA Assets Out of Bankruptcy for $222M”
Energy Services | Equitrans/EQT Midstream | Industrywide Issues | Pipelines | Regulation | Statewide WV | West Virginia

WV DEP Issues Key Water Permit for Mountain Valley Pipeline
January 3, 2022January 3, 2022

Some really good (and expected) news to report. The West Virginia Dept. of Environmental Protection (WV DEP) issued a key permit for the Mountain Valley Pipeline (MVP) to finish work crossing rivers and streams in the Mountain State. MVP, a 303-mile pipeline from West Virginia into southern Virginia, is currently 94% built and in the ground. There are several portions left to complete it, including crossing rivers and streams in both Virginia and West Virginia. The permits needed to do so come from three sources: the U.S. Army Corps of Engineers, the Virginia Water Control Board, and WV DEP.
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Judge: Energy Transfer Must Pay Williams $410M for Aborted Merger
January 3, 2022October 11, 2023

In 2015 Kelsy Warren and his Energy Transfer Equity (now just Energy Transfer) company pursued Williams, wanting to merge Williams into its own operation. Williams initially fought ET tooth and nail, but in the end, caved and cut a deal (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Without recounting all the sordid details, ET got cold feet and left Williams at the altar, and Williams sued to recoup a contractual breakup fee (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). Plenty of lawsuits ensued and finally, after more than six years, a judge ruled on Wednesday, Dec. 29, that ET must pay Williams a $410 million breakup fee provided for in the signed deal.
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Anti-Drilling/Fossil Fuel | Chester County | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

Bitter Antis Admit Defeat – ME2 Pipeline to be Completed in 1Q22
January 3, 2022January 3, 2022

In early December the Pennsylvania Dept. of Environmental Protection (DEP) agreed to allow Energy Transfer to change the way it will install the Mariner East 2 (ME2) pipeline in the Marsh Creek Lake area in Chester County, PA (see PA DEP Approves ME2 Plan to Finish Pipe Thru Marsh Creek Lake Area). Two weeks later the DEP issued the necessary permits to allow construction to commence (see PA DEP Issues Revised Permits for ME2 Pipe Near Marsh Creek Lake). The Marsh Creek Lake work is the final big project to complete ME2. Needless to say, anti-fossil fuel zealots are distraught. Antis get funny when they get upset.
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Anti-Drilling/Fossil Fuel | Enbridge | Energy Services | Industrywide Issues | Litigation | Pipelines

MA Court Rejects Appeal to Cancel Permit for Weymouth Compressor
January 3, 2022January 3, 2022

In November 2020 the town of Weymouth, Massachusetts dropped a legal fight to block an Enbridge compressor station under construction in the town (see Weymouth, MA Drops Opposition to Compressor in Return for $38M). The price to get the town to shut up was an initial $10 million lump-sum payment (due within 30 days) followed by $28 million more in property taxes over the next 35 years, for a total price tag of $38 million smackeroos. However, leftist wackos who truly believe this plant will cause man-made global warming didn’t get the memo. A group of wackos co-filed with the town to appeal a state permit allowing the plant to get built. A three-judge panel ruled last week the wackos don’t have standing to appeal a state agency approval of the compressor project.
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Industrywide Issues | Research

Enverus Rig Count @ 706 (-13); Marcellus @ 37 (+0), Utica @ 10 (+0)
January 3, 2022April 20, 2022

Two weeks ago the Enverus U.S. rig count hit another new post-pandemic high of 719 active rigs. However, last week the count retreated by 13 rigs to 706 active rigs, mainly due to a big drop in rigs in the oil-focused Permian Basin. The Marcellus held steady last week at 37 active rigs, while the Utica held steady at 10 active rigs. The combined M-U had 47 active rigs last week.
Read More “Enverus Rig Count @ 706 (-13); Marcellus @ 37 (+0), Utica @ 10 (+0)”
Best of the Rest

Other Stories of Interest: Mon, Jan 3, 2022
January 3, 2022January 3, 2022

MARCELLUS/UTICA REGION: Eastern Generation scuttles natgas plans in NYC; NATIONAL: U.S. natural gas faces high volatility in 2022; First US LNG cargo from certified gas could set sail; The top energy stories of 2021; The energy year in review: a year of predictable surprises; Fed survey shows oil and gas firms planning a modest 2022 comeback; Breaking norms at the Biden EPA; INTERNATIONAL: Another LNG cargo appears to divert to Europe; Europe ‘can eradicate energy poverty’ by quitting fossil fuels.
Read More “Other Stories of Interest: Mon, Jan 3, 2022”