Dimock Trial Starts Today – 2 Families Try to Shake Down Cabot
Dimock, PA is the story that just doesn’t die. We thought the story of methane migration into nearby water wells in a small area of Dimock, PA (from Cabot Oil & Gas wells) had long since been put to bed. There were 14 families along the Carter Road area that reportedly experienced turbidity in their water from methane migrating from drilling operations nearby. The state Dept. of Environmental Protection investigated in 2010 and declared Cabot guilty and imposed some pretty stiff fines and requirements, including a requirement to install permanent water treatment systems at each home and even an offer to each of the families to pay twice what their property was worth at the time (see PA DEP Takes Aggressive Action Against Cabot Oil & Gas over Dimock Township Methane Contamination). We won’t recount all of the twists and turns we documented over the years, including research that showed Cabot wasn’t responsible for the methane migration. All of the properties either sold to Cabot or got their water systems repaired–except for two holdout families who are riding the horse of hope that they can sue Cabot for big money and retire millionaires. Of course the only people making money on the lawsuit are their lawyers–but that doesn’t seem to bother them. The final two holdouts in Dimock get their day in court beginning today. Except their lawyers sleazily tried to sneak in a bunch of “evidence” at the last minute–and the judge has ruled they can’t use it. In fact, the judge called the move a “sad and shocking spectacle.” No one can predict the court’s outcome for sure, but given what’s happened so far, it’s pretty easy to predict that Cabot will win this one and then the final chapter will be written in the long, sordid tale of how anti-drillers tried to demagogue the Dimock situation–and lost…
Read More “Dimock Trial Starts Today – 2 Families Try to Shake Down Cabot”
Last Friday MDN brought you the news about a professor who devised a clever formula for evaluating the overall environmental impact of 20 Marcellus drillers (see 
Cabot Oil & Gas, one of the premier drillers in the Marcellus Shale (operates totally within Susquehanna County, PA) released their fourth quarter and full year 2015 operational update this morning. The highlights: Cabot ended up spending $774 million on capital expenditures (mostly drilling) in 2015, down a bit from the previous estimate of $850 million. It’s down because they scaled back activity during 4Q15. They also had to write down the value for some of their non-core holdings by $73 million–what’s called an impairment charge. Looking ahead, Cabot plans to spend $615 million on capital expenditures (i.e. drilling) in 2016, which is down 58% from 2015. They will drill approximately 30 new wells, 25 of them in the Marcellus and 5 in the Texas Eagle Ford Shale. Here’s the update…
Way back in May 2014 MDN told you that UGI Energy Services, a subsidiary of UGI (a utility company in northeast PA) would build two new pipelines in northeast PA for $80 million that will allow them to transport cheap, abundant, locally extracted natural gas from Cabot Oil & Gas in Susquehanna County to residents in the greater Scranton/Wilkes-Barre area (see 
Cabot Oil & Gas, one of the best-performing Marcellus Shale drillers in the entire play, issued their third quarter 2015 update today. They did pretty well all things considered. The company reports a slight increase in production of 7% year over year. However, the even the mighty Cabot can’t overcome wicked low prices for natural gas in northeastern Pennsylvania–the lowest in the country. Cabot made just over $100 million in profit in 3Q14. This year? They lost $15 million–which ain’t all that shabby compared to just about every other driller in the northeast. By comparison Southwestern, with more acreage and a larger drilling program, lost $1.8 billion in 3Q15. Yikes! Here’s the update issued today by Cabot…