Energy Companies

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    Dimock Trial Update: Judge Says Plaintiffs Didn’t Suffer Damage

    The judge in the famous Dimock water contamination case has ruled that the plaintiffs have not proven any kind of damages, so he tossed out the negligence claim against Cabot Oil & Gas. That is, he just tossed out most of the remaining case! The only claim left now for the jury to decide, beginning today, is whether or not Cabot created a “nuisance” with their drilling activities. Translation: Cabot Oil & Gas did not, in any way, contaminate water wells in Dimock with their drilling activities. That is now proven in a court of law. Once again MDN friend Tom Shepstone, who has done a superb job of covering the trial, files this report about the judge tossing the last major charge against Cabot, and about more expert testimony that demolishes the plantiffs’ so-called expert witness Tony Ingraffea…
    Read More “Dimock Trial Update: Judge Says Plaintiffs Didn’t Suffer Damage”

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    CONSOL Uses Magnum Dissolvable Frac Plugs in Utica Shale

    We’re always intrigued by the technology being used by Marcellus and Utica drillers. Some of the best innovations in the shale patch have come in the northeast. So when we spotted a story (press release) about a company hooking up with CONSOL Energy to provide high tech fracking solutions, our eyes and ears perked up. Magnum Oil Tools says they have provided CONSOL with 20 Magnum Vanishing Plugs (frac plugs) for use in the Utica Shale. What the heck is a frac plug?…
    Read More “CONSOL Uses Magnum Dissolvable Frac Plugs in Utica Shale”

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    Mountain Valley Pipeline Wins Right to Survey in VA w/o Permission

    Mountain Valley Pipeline is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission last October, is being built by EQT, NextEra Energy and several other partners (see Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time). The project has faced stiff opposition from landowners in West Virginia (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). The project has also faced opposition from landowners in Virginia. However, things just got a lot easier for Mountain Valley when it comes to surveying a potential route through the Old Dominion state. The Virginia Supreme Court on Monday decided NOT to hear an appeal of a lower court ruling that allows pipeline surveyors to access a property WITHOUT the landowner’s permission. That decision means the lower court ruling, which allows surveyors unpermissioned access, to stand…
    Read More “Mountain Valley Pipeline Wins Right to Survey in VA w/o Permission”

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    WV “Help Out Antero” Bill (re Nuisance Lawsuits) is Dead for 2016

    We’ve told you about a bill winding its way through the legislative process in West Virginia that would stop a rash of so-called nuisance lawsuits–primarily against Antero Resources (see WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers). Hundreds of nuisance lawsuits (“they’re too loud, “they leave the lights on too late,” “I don’t like the truck traffic”) have been filed against Antero and other drillers. The lawsuits against Antero have been combined into a class action lawsuit (see More People Pile on Antero, Seek to Join Mass “Nuisance” Lawsuit). It’s a back door way to bring down a company–like a pack of hyenas attacking a giraffe. If the pack is big enough, it can kill its prey. Senate Bill (SB) 508 was meant to stop this insanity, and as of a few weeks ago it was advancing (see 2 Bills Favorable to Drillers Advance in WV Senate – SB 508 & 565). But that was then, this is now. SB 508 is now pretty much dead. A House committee is holding it up and the bill won’t make it to the floor for a vote before the end of WV’s brief 60-day legislative session…
    Read More “WV “Help Out Antero” Bill (re Nuisance Lawsuits) is Dead for 2016″

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    Facebook Censors Dimock Trial Stories; Judge Tosses Part of Case

    Radical environmentalists have a lot in common with Benito Mussolini and Adolf Hitler. They’re Fascists who brook no dissent from their twisted view of reality. Case in point: Phelim McAleer, the filmmaker who made the FrackNation documentary, has attended and covered the happenings at the Dimock trial for the past several weeks. We’ve carried most of Phelim’s reports here on MDN, including the hilarious way the plantiffs’ so-called expert, Dr. Tony Ingraffea, tried to avoid answering Phelim’s questions outside of the courthouse (see Dimock Trial: Ingraffea Day 2 – Hides Behind a Woman’s Coat). Being exposed as the frauds they are doesn’t sit well with radical environmentalists who have so much invested in the fiction of “water contamination” in Dimock. Phelim is one of the few (two, actually) outlets where we’re learning the truth about the Dimock trial. The news coming from the trial is so bad for the antis, mainstream media has a self-imposed news blackout on the trial–hoping the masses don’t notice it. Phelim has filed his reports on the FrackNation Facebook page. And herein lies the the ugly side of radical environmentalism. The anti-fracking movement began flooding Facebook with complaints about Phelim’s posts regarding the trial, and Facebook actually took down several posts, and locked down the FrackNation page on Facebook for 24 hours with a warning to cease and desist from posting new Dimock stories. Amazing! Someone tells THE TRUTH about a trial in Scranton, PA and Facebook censors it! Based on a hate campaign launched by radical environmentalists. The good news is that Facebook pulled its collective head out of its rear-end long enough to figure out this was a Fascist job by antis and they’ve now restored the FrackNation page and resurrected the deleted posts…
    Read More “Facebook Censors Dimock Trial Stories; Judge Tosses Part of Case”

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    WSJ: Aubrey McClendon was in Debt Up to His Eyeballs

    We continue to learn more about what was going on behind the scenes with Aubrey McClendon and his new company and financial “empire.” It appears Aubrey’s new empire was built on a house of cards, and it was all starting to fall down. The Wall Street Journal ran an extensive article yesterday that outlines the intricate web of Aubrey’s financial dealings. Below is a small portion of that article…
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    PDC Energy Offers 5.15M Shares of New Stock, Wants to Get $263M

    Something we’ve noticed about energy companies offering more stock as a way of generating cash. Almost always they issue one press release to announce they are offering X shares of new stock. And a few hours later they issue a second press release announcing they’ve “upsized” the offering–offering more shares. Are they trying to give the impression that there was “just so much darned demand we simply had to offer even more shares to meet all the demand”? That’s what it looks like. Of course it’s just a marketing tactic (if you ask us). They all seem to do it. The latest example is from PDC Energy, a driller in the Wattenberg Field in Colorado and the Utica in Ohio. PDC paused its Utica drilling program in 2015 with plans to do a little more drilling in the Utica in 2016. PDC issued its pair of press releases yesterday, the first saying they will float 4 million new shares of stock, the second saying that number was upsized and they would instead offer 5.15 million shares with hopes to raise $263 million…
    Read More “PDC Energy Offers 5.15M Shares of New Stock, Wants to Get $263M”

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    Dimock Trial: Lighting Tap Water on Fire Decades Before Drilling

    Last Thursday and Friday in the trial brought by two Dimock, PA families against Cabot Oil & Gas for supposedly contaminating their water wells with methane, Cabot launched into its defense since the plantiffs had rested their case. One of the first witnesses was Dr. Tarek Saba, a real scientist who actually has practical experience with oil and gas drilling and knows the details of the Dimock wells (unlike the plantiffs’ expert witness, Tony Ingraffea, who was destroyed under cross examination, see Dimock Trial: Ingraffea Day 2 – Hides Behind a Woman’s Coat). Dr. Saba’s testimony further debunked the fluff and BS (Barbara Streisand) coming from Tony Ingraffea. Not only that, but at the end of the day on Friday, Cabot called a local Dimock resident who spoke about lighting her water on fire just like they did in Gasland–decades before there was any natural gas drilling in the area. What a great witness!…
    Read More “Dimock Trial: Lighting Tap Water on Fire Decades Before Drilling”

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    Rex Energy Offers to Refinance Outstanding IOUs

    As MDN reported last week, Rex Energy is doing everything it can to stay alive during this severe downturn in natural gas prices (see Stayin’ Alive: Rex Energy $175M JV to Keep Drilling in PA & OH). Last week Rex announced a joint venture cash infusion of $175 million to keep drilling in both PA and OH. On Friday the company announced another strategy to help it keep going: refinancing notes (we call them IOUs) so the notes expire later, meaning they don’t have to cough up cash sooner to pay off the debt. It pushes repayment out further, after (presumably) the market has turned and Rex is once again making a profit. Here was Rex’s Friday announcement about “exchanging notes”…
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    More Info Comes to Light About McClendon’s Last Days/Last Moments

    We’ve spotted several new (to us) bits of information about Aubrey McClendon that may have bearing on his state of mind prior to the fiery crash that took his life on Wednesday. We now know who the likely second party was in the Dept. of Justice’s (DOJ) indictment of Aubrey on a single count of conspiracy. As we’ve pointed out from the beginning of the DOJ’s indictment, by definition you can’t have a conspiracy with just one person. You need at least two people. The problem was/is, the DOJ hasn’t indicted anyone else–which made this a witch hunt, not justice. You don’t get to say just one person is guilty in a conspiracy. We also have information about the state of Aubrey’s new business venture–American Energy Partners. It seems he was losing control of all the subsidiary companies spun off from AEP, and that his biggest backer, Energy & Minerals Group, was about to hang Aubrey out to dry. It may have seemed like with the indictment and his new venture slipping away and with old friends turning on him, that Aubrey’s world was closing in. First up, let’s begin our coverage with eyewitness accounts of the crash…
    Read More “More Info Comes to Light About McClendon’s Last Days/Last Moments”

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    Stirring Tributes Pour in After Aubrey McClendon’s Untimely Death

    Right after news of Aubrey McClendon’s death, a number of people offered up their reaction, comments and condolences. We brought you some of the early/initial reaction yesterday (see Stunned: Former Chesapeake CEO Aubrey McClendon Dies in Car Crash). Since then, many more have poured in, from people like his former business partner and co-founder of Chesapeake Energy, Tom Ward; the president of Duke University (Aubrey’s alma mater), Richard Brodhead; CEO of Continental Resources, Harold Hamm (a fellow giant in the fracking industry); and Jim Cramer, celebrity investor and host of CNBC’s Mad Money. Among the outpouring of glowing comments was one from corporate raider Carl Icahn–the man who fired McClendon from Chesapeake. When we read Ichan’s words, we puked…
    Read More “Stirring Tributes Pour in After Aubrey McClendon’s Untimely Death”

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    Dimock Trial Update: Parents Use Their Kids to Rescue Case…Fail

    If you want to be a blithering idiot and spout your anti-fossil fuel garbage–do it all you want. But don’t abuse your own children by making them do it too. And if you want to try to shake down a company with deep pockets to line your own pocket–same thing. Go for it. It’s sleazy and slimy–but don’t involve your kids in your unethical schemes. That’s just what the Elys have done. In a bid to try and rescue a trial that in all likelihood is about to be dismissed for lack of evidence, plantiffs Scott and Monica Ely had their lawyer put their own children, ages 10-13, on the witness stand. Who would do that to their own children? Even when the plantiffs’ lawyer, the inept Leslie Lewis, asked leading questions in an attempt to tug at the jury’s heartstrings, the entire effort was a bust. The Elys and Huberts, suing Cabot Oil & Gas for allegedly contaminating their water in Dimock, PA, are about out of options. After resting their case, the judge told the plantiffs he has “grave concerns” about the case and lack of evidence. The judge is seriously considering dismissing the case before it reaches the jury…
    Read More “Dimock Trial Update: Parents Use Their Kids to Rescue Case…Fail”

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    Stunned: Former Chesapeake CEO Aubrey McClendon Dies in Car Crash

    AubreyMcClendon.jpgWe are still stunned at the news–news you’ve likely already heard elsewhere. Yesterday morning Aubrey McClendon, 56 years old and the sole person in his SUV, was traveling along a 2-lane road in/near Oklahoma City when he crashed into a bridge foundation/embankment while moving at “a high rate of speed.” He was killed in the crash. Yesterday afternoon MDN editor Jim Willis received a call from reporter friend Bob Downing from the Akron (OH) Beacon Journal to ask for a response to the news. “What news?” Jim asked. And Bob told him. The accident is still being investigated, but the guy in charge of investigating it, without prejudging what he will find, has already pronounced it pretty cut and dried. We find it hard (nearly impossible) to believe, but most people, including the investigator, seem to believe it was a suicide, perhaps because the day before Aubrey was indicted by the U.S. Dept. of Justice (see Aubrey McClendon Indicted by DOJ for Conspiracy in Bid Rigging). Aubrey was traveling at 50+ mph and was not wearing a seat belt when his SUV hit the bridge embankment–without applying the brakes. He could have fallen asleep. He could have been distracted. Or it may have been intentional. The investigator said Aubrey had plenty of time to correct course and not hit the embankment. Below we have the details as we know them, along with reaction from a number of people and organizations. We join others in saying our thoughts and prayers go out to Aubrey’s wife and three adult children…
    Read More “Stunned: Former Chesapeake CEO Aubrey McClendon Dies in Car Crash”

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    Eclipse Resources: Production Up 186%, Continued Drilling in 2016

    Eclipse Resources, a small but growing driller headquartered in State College, PA but drilling exclusively in the Ohio Utica Shale, released their fourth quarter and full year 2015 update yesterday. Among the highlights: Production was up 186% in 2015 over 2014. Revenue was up 97% over 2014. Eclipsed drilled 31 wells, completed 51 wells and brought 76 wells online in 2015. The company will continue to focus exclusively on the Utica in 2016, as they did in 2015. They plan to spend $168 million in 2016, of which $130 million is for drilling and completions, and with that money they will drill 7.6 net Utica wells, complete 9.4 net Utica wells and exit the year with 11.5 net Utica wells drilled but uncompleted (DUCs). The elephant in the room is that Eclipse lost nearly $1 billion in 2015. However, as with many other drillers, the loss was on paper only–not out of pocket. With impairments (write-down of lease values) and with depreciation and other accounting shenanigans, almost all of the loss was on paper. Hey, at least they will keep on drillin’ in 2016! Here’s the update with the details…
    Read More “Eclipse Resources: Production Up 186%, Continued Drilling in 2016”

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    Dimock Trial: Ingraffea Day 2 – Hides Behind a Woman’s Coat

    Yesterday we brought you first-hand reporting on Day 1 of testimony from so-called expert witness Dr. Anthony (Tony the Tiger) Ingraffea at the Dimock water trial (see Dimock Trial: Cornell Prof Tony Ingraffea Exposed as Fractivist). Both MDN friend Tom Shepstone and FrackNation filmmaker Phelim McAleer are attending the trial and filing superb reports. It’s a good thing they are there. The Democrat-controlled Scranton Times-Tribune–the “newspaper of record” in the very place where the trial is being held–has stopped reporting on the trial, because the news is just so bad for anti-drillers. It’s a total news blackout by mainstream media. But there is a TON of news coming from this trial, and none of it so interesting as the total destruction of Ingraffea under cross examination. He’s not only been exposed as a fractivist, he’s been exposed as knowing nothing about the Dimock water well case! The very case he’s supposed to know about–the very reason he is testifying as an “expert.” Below is a summary of day two of Ingraffea’s testimony, in which he admits to a huge list of things he doesn’t know. Also below, Phelim got his camera out and tried to interview Ingraffea outside the courthouse and Ingraffea, sounding like a baby muttering “He’s harassing me,” hid behind a woman’s coat and wouldn’t answer Phelim’s questions. It’s hysterical! You have to watch the video (below)…
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    Exxon to Spend 25% Less in 2016, But Raises $12B to Go Shopping

    ExxonMobil, the largest U.S.-based energy company and largest producer of natural gas in the U.S., released an interesting press release yesterday. In it, they divulge their high-level plans for 2016. Among those plans, the company will spend $23 billion this year, which is 25% less than what they spent last year. Exxon will start up 10 new upstream projects in 2016 and 2017, which will add an additional 450,000 oil-equivalent barrels per day to their already huge production. Exxon CEO Rex Tillerson is quoted as saying, “We are advancing several Downstream and Chemical projects to increase feedstock flexibility, produce higher-value products and expand logistics capabilities to strengthen our competitive advantage in these businesses.” Our thought: Let’s hope one of those downstream projects getting advanced this year is the Monaca, PA ethane cracker. It’s also interesting what Exxon didn’t say in yesterday’s press release: They didn’t comment on the recent $12 billion in bonds they’ve floated so they can go shopping and pick off distressed competitors and/or their assets…
    Read More “Exxon to Spend 25% Less in 2016, But Raises $12B to Go Shopping”