Monroeville Seismic Testing Ordinance Challenged in Court
Monroeville, PA (Allegheny County, suburb of Pittsburgh) is hostile toward the shale industry. In September, Monroeville Council voted to enact a super-restrictive seismic testing ordinance (see Monroeville, PA Passes Restrictive Seismic Testing Ordinance). The ordinance was meant to hassle Huntley & Huntley (H&H), which had wanted to conduct seismic testing in two rural areas of the municipality. As an aside, H&H’s headquarters is in Monroeville. Maybe they should move it, taking their jobs and tax contributions with them? At any rate, the contractor doing the seismic work for H&H, Geokinetics, has taken Monroeville Council to court over their punitive seismic ordinance. In the complaint, Geokinetics says, “Monroeville’s intransigence is not motivated by any legitimate concerns for the health and safety of its citizens, but rather by its council’s concerns about November elections.” One of the Democrat councilors up for reelection, Linda Gaydos, replied, “It had nothing to do with my election and it certainly wasn’t for political gain.” However, Gaydos’ actions speak louder than her words. Gaydos and other anti-drilling Council members voted earlier this month to ban shale drilling in most places within the municipality (see Monroeville, PA Hostile to Shale, Bans Drilling in Most Places). We hope the residents of Monroeville enjoy paying more in taxes to fund lawsuits brought against the municipality because of the actions of “leaders” like Gaydos…
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As we have said for years, ever since the Pennsylvania legislature modernized and updated drilling regulations to account for shale drilling in 2012, known as Act 13, anti-fossil fuel nutters have attempted first to destroy Act 13, and later subvert it. Act 13 originally provided for uniform zoning across the state with respect to siting wells. But seven selfish townships sued and eventually won (at the PA Supreme Court) the right to retain their own zoning regulations with respect to oil and gas wells (see
Cunningham Energy is a small oil driller based in West Virginia. In 2015, Cunningham struck oil in the Big Injun sandstone formation in Clay County, WV (see
EQT’s Equitrans (pipeline) Expansion Project is on track to begin construction by the end of this year–likely sometime in November. We first covered this project in 2015 (see
The Pennsylvania Supreme Court said last week it will accept a case about strippers–stripper wells, that is. In brief, in 2012 Pennsylvania passed the Act 13 drilling law that includes a fee on wells targeting shale layers, including the Marcellus. Snyder Brothers, headquartered in Kittanning, PA, drills mostly conventional (vertical only) wells in southwestern PA. In 2011-2012 they drilled 45 vertical-only wells, but targeting the Marcellus, all of the wells fracked. Initially those wells produced more than 90 Mcf/day, but by December of the year they were drilled, they produced less than 90 Mcf/day. The way the 2012 Act 13 law is written, if a well produces less than 90 Mcf/day during “any” month it is considered a stripper well and exempt from paying the impact fee. The state’s Public Utility Commission (PUC) assessed the fee anyway because for 11 months the wells produced more than 90 Mcf/day. Snyder Bros. sued and after an appeal of the case, Snyder Bros. won their case in March, exempting those wells from paying impact fees (see
In June MDN brought you the news that Eclipse Resources had drilled yet another world record-breaking shale well in the Ohio Utica (see
The Wall Street Journal is reporting rumors that the privately-held Ascent Resources, which targets the Utica Shale in Ohio, is shopping for bankers to help it with an initial public offering (IPO). Ascent reportedly is aiming for a stock market valuation of $3.5 billion. Ascent was formerly known as American Energy Partners (AEP), founded by Aubrey McClendon after he was unceremoniously dumped as CEO of Chesapeake Energy–the company he co-founded. AEP set up a number of subsidiary companies to target different shale plays. One of the largest was aimed squarely at the Ohio Utica (American Energy Partners–Utica LLC). That company later left the AEP fold, under pressure from investors, and became an independent company, renaming itself as Ascent Resources. Ascent, just like founder Aubrey, went on a money-raising binge after departing the AEP fold. In March 2016 Ascent floated 2.2 billion common units (think shares of stock) to raise $500 million (see 

Last week MDN brought you news about a relatively new company called American Energy Partners, Inc., based in Allentown, PA, and their subsidiary company Gilbert Oil & Gas (see
Huntley & Huntley has plans to drill shale wells in Upper Burrell Township (Westmoreland County), PA. As MDN reported in June, a landowner in Upper Burrell filed an appeal against Upper Burrell’s zoning ordinance that allows drilling in rural, agricultural districts (see
Greg Guidry is the executive vice president of Shell’s unconventionals business. That is, he’s in charge of shale drilling for the company. Talking to a reporter at the Energy Dialogues LLC’s North American Gas Forum earlier this month, Guidry said shale is “a future growth opportunity because of its long-term growth potential.” Guidry is interested in promoting shale as “a lower-carbon energy source.” He believes the way to properly promote shale gas is by partnerships between the oil and gas industry and non-governmental organizations (NGO). Guidry then used the Center for Responsible Shale Development (CRSD), a group headquartered in Pittsburgh, as the model for how such a partnership can and should be done. In March 2013, the Center for Sustainable Shale Development (CSSD) burst onto the scene. It had been a closely guarded secret, the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. They worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, it would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe driller. In January of this year the CSSD changed its name to CRSD–the Center for Responsible Shale Development (see
In 2014, Chevron launched the Appalachia Partnership Initiative (API) with $20 million to fund education (for students) and training (for workers) in STEM–Science, Technology, Engineering and Math across 27 counties in Pennsylvania, West Virginia and Ohio (see
The disgusting corporate raiders at Jana Partners are fighting to the bitter end in their attempt to stop the merger/takeover of Rice Energy by EQT. In June EQT and Rice Energy announced that EQT will buy out and merge in Rice Energy, to create (in EQT) the largest natural gas-producing company in the United States (see
Cabot Oil & Gas has long been one of our favorite Marcellus drillers. We are friends with several members of the Cabot team. We are impressed with their many acts of philanthropy in northeastern Pennsylvania–donating millions of dollars to worthy causes in the local community where they drill. As we’ve pointed out many times, Cabot somehow spins gold out of hay in Susquehanna County–producing something like 2.5% of all the natural gas that’s produced in the U.S. from a single county. They have some of the best rocks in the shale business. Cabot’s assets have not gone unnoticed on Wall Street, where investors and analysts call the company “a unicorn.” While the term unicorn as applied to a company can have several meanings, as applied to Cabot the meaning is clear: the company is rare, and desirable. In an Investor’s Business Daily article, several analysts gush about Cabot in light of the beginning of construction of the Atlantic Sunrise Pipeline project. Cabot will be the main shipper on the new pipeline. Analysts are predicting next year, in 2018, Cabot’s production will increase 23% from this year. And in 2019, one analyst says Cabot production will be up a whopping 47%! You begin to see why Cabot has a reputation as a unicorn on Wall Street…