Energy Companies

Accidents | Antero Resources | Energy Companies | Industrywide Issues | Regulation | Tyler County | West Virginia

Contractor Fined $13,550 for WV Well Pad Violations/Death in 2014
June 3, 2015June 2, 2015

We don’t normally miss news like an accident at a well pad in the Marcellus that kills someone–but we did this time. At the end of November 2014, Ryan Dunn, a contract worker employed by Precision Drilling, was working at an Antero Resources well pad in Tyler County, WV when he was struck and run over by a front-end loader used to move pipe at the site. Dunn was pronounced dead at the scene. A true tragedy. The federal Occupational Health and Safety Administration (OSHA) investigated and found a number of problems at the site. OSHA has completed their investigation and is assessing a total of $13,550 in penalties against Precision Drilling. We’ve not spotted anything about lawsuits or about fines by the WV Dept. of Environmental Protection. Here’s what we’re able to locate on the accident and resulting fine by OSHA…
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Eclipse Resources | Energy Companies | Monroe County | Ohio | Utica Shale

Eclipse Resources Update: Squeezing More Wells in Smaller Space
June 3, 2015June 2, 2015

Eclipse Resources, a Marcellus/Utica driller headquartered in State College PA, but drilling mainly in the Ohio Utica Shale, issued an operational update yesterday. The company says by the end of the second quarter they expect to be producing around 180 million cubic feet of natural gas per day–the high end of the previous estimated range. The company is spending less money than it expected, which keeps the investors happy. Eclipse recently completed drilling a 3-well pad in Monroe County, OH with the well spacing just 730 feet apart–the first time they’ve tried spacing wells below 1,000 feet apart. All eyes are on the outcome of that experiment. (If successful, it means they can drill more wells in the same amount of space–by their estimates, 20% more wells.) Eclipse had wanted to put those 3 wells into sales in December of this year–which now looks like it will slip into January of next year. Here’s the update with details about their Utica drilling program…
Read More “Eclipse Resources Update: Squeezing More Wells in Smaller Space”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania | Regulation

Chevron Fined $939K for PA Well Fire/Death in Greene County, PA
June 2, 2015June 2, 2015

Last week MDN brought you word that Chevron had settled a wrongful death lawsuit stemming from an explosion at a Greene County, PA well in 2014 (see Chevron Settles PA Marcellus Wrongful Death Lawsuit for $5M). The other shoe has now dropped. In addition to that $5 million, add another $939,000 in fines from the Pennsylvania Dept. of Environmental Protection (DEP). The DEP yesterday announced Chevron has entered into a Consent Assessment of Civil Penalty (CACP) and has agreed to pay the fines levied by the DEP as a result of the explosion and fire at the Lanco well pad. The details from the DEP…
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Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Pipelines | Rex Energy

Rex Energy Hires Stonehenge to Build Gathering Pipeline in PA
June 1, 2015June 1, 2015

Rex Energy has contracted with Stonehenge Energy Resources to build a pipeline gathering system for Rex in Butler County, PA. Financial details of the deal were not disclosed, but the system–to be built this year–will provide an additional 400 million cubic feet per day of natural gas pipeline capacity, expandable in the future. The Stonehenge gathering system will deliver gas to MarkWest Energy’s Bluestone processing plant. The details…
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BG Group | BP | Energy Companies | Equinor/Statoil | Industrywide Issues | Shell | Taxation | Total

Big European Oil Companies Want UN to Slap Carbon Tax on U.S.
June 1, 2015June 1, 2015

The Europeans are sometimes, well, stupid. How else can you explain six large oil companies–BG Group, BP, Eni, Royal Dutch Shell, Statoil and Total–buying into the tax scheme called carbon credits? The six sent a letter (copy below) to the United Nations Framework Convention on Climate Change (UNFCCC) begging the UN to introduce carbon pricing systems and “create clear, stable, ambitious policy frameworks that could eventually connect national systems” that would “reduce uncertainty and encourage the most cost effective ways of reducing carbon emissions widely.” This is madness. Create laws that supersede each country’s sovereignty and impose a worldwide tax on carbon–the stuff you breathe out with every breath–as some sort of solution for the imaginary problem of man-made global warming? If the UN does such a thing, it will spell the end of the companies sending the letter! What do you call a company trying to commit economic suicide? Do the investors of these six companies know the heads of those companies are trying to destroy the company and their investments along with it? No wonder Europe is in decline…
Read More “Big European Oil Companies Want UN to Slap Carbon Tax on U.S.”
Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Litigation | Pennsylvania

Chevron Settles PA Marcellus Wrongful Death Lawsuit for $5M
May 29, 2015May 29, 2015

In February 2014 there was an explosion and fire at a Chevron well pad that eventually spread from one Marcellus well to a second well on the same well pad in Greene County, PA (see Explosion & Fire at Chevron Well in SWPA – 1 Person Missing). Ian McKee, 27, a Cameron International contractor working at the site was tragically killed in the blast (see Remains of Chevron Contractor Found at Greene County Well Site). The final report of the PA Dept. of Environmental Protection (DEP) investigating the accident concluded there was plenty of blame for Chevron, primarily from using overworked and inexperienced well site managers (see DEP Issues Final Report – What Caused Chevron Well Fire?). Ian’s girlfriend/partner was pregnant at the time of his death. Ian’s parents sued Chevron for wrongful death (see Parents of Worker Killed in Chevron Greene Co Fire Sue). That lawsuit has just been settled for $5 million, broken down as follows…
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Butler County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Rex Energy

Rex Energy to Restart Drilling Near Mars School Following Vote
May 29, 2015May 29, 2015

Let the drilling begin! The three members of the Middlesex Zoning Hearing Board (Butler County, PA, where the Mars School District is located) voted unanimously on Wednesday to reject challenges by anti-drillers to changes in zoning laws that allow Rex Energy to drill a series of wells on a pad about 3/4 of a mile from the Mars School. Four Martian parents have worked themselves up into a frenzy, convincing themselves that faraway drilling will harm their precious, innocent lil’ chil’ren. The Martians have enlisted the help of anti-drilling groups from the opposite side of the state–the Philadelphia area–tapping into their deep pockets to fund endless lawsuits and appeals that are costing Middlesex taxpayers big bucks to defend (see Dela. RiverKeeper, Clean Air Council Cost Middlesex Residents $35K+). (By the way, when is the IRS going to investigate THE Delaware Riverkeeper for clear violations of their 501(c)(3) tax exempt status? Riverkeeper continues to operate, politically, far outside of the Delaware River Basin. Their tax exempt status should be revoked.) The zoning board vote was good news for Rex who says they won’t waste any time in returning to the drill site to begin work. By the time the Martians are done suing, the wells will already be drilled…
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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

Range Capitulates, Closing 4 Freshwater Ponds in Mt. Pleasant, PA
May 29, 2015May 29, 2015

More than two years of acrimony and lawsuits are now over for Range Resources in Mt. Pleasant (Washington County), PA. Mt. Pleasant is one of the original seven selfish towns that sued PA to overturn portions of the Act 13 oil and gas law. The town was giving Range a hard time over four freshwater ponds (called “impoundments,” not to be confused with wastewater impoundments) the company was using to drill wells in nearby non-Mt. Pleasant locations. The town served the company with notices of violation in July 2013 and then held a public hearing in August 2013 where things got heated between the town and Range (see Range Resources Argues with Mt Pleasant over Water Impoundment). Mt. Pleasant kept after them (see Mt. Pleasant Zoning Bd Says Range Water Impoundments in Violation), and after them (see Mt Pleasant Twp Shenanigans re Range Request for Water Ponds), and after them (see Mt. Pleasant, PA Continues to Ride Range Over Water Ponds). Sooner or later a company can take a hint that a township is anti-business. Range is throwing in the towel, closing down all four freshwater ponds, and leaving town…
Read More “Range Capitulates, Closing 4 Freshwater Ponds in Mt. Pleasant, PA”
Energy Companies | Warren Resources

Warren Resources Converts Refinanced Debts into $200M Cash
May 29, 2015May 29, 2015

Warren Resources, an independent oil and gas company headquartered in New York City whose drilling is focused primarily in California but with a small operation in the Pennsylvania Marcellus Shale, has just refinanced $250 million worth of existing loans and notes and somehow has wound up with just over $200 million in cash as part of the process. How you can refinance loans and pull out that much cash we have no clue. If you understand the following financial machinations with its talk about first lien credit lines, second lien debt, incurrence tests, LIBOR floors and other financial mumbo jumbo, please enlighten us!…
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American Energy Partners | Energy Companies | Ohio | Statewide OH | Utica Shale

McClendon Running Out of Money?! Paloma Utica Deal Goes Bust
May 28, 2015May 28, 2015

In February 2014 MDN told you about a deal cut by wildcatter Aubrey McClendon to lease 130,000 acres in the Ohio Utica Shale, a deal with three different companies (see McClendon Confirms 3 New Utica Shale Deals: Hess, XTO, Paloma). At least one of those deals, with Paloma Resources, went bust this year. According to Paloma’s president, Christopher O’Sullivan, Aubrey didn’t have enough money to close the deal. Which makes us ask the question, is Aubrey running out of money to finance his massive expansion in the Utica?…
Read More “McClendon Running Out of Money?! Paloma Utica Deal Goes Bust”
Energy Companies | Rex Energy

Hedge Fund Buys ~5 Million Shares of Rex Energy – 9% of Stock
May 28, 2015May 28, 2015

We’ve long written about, and have been fans of, a small driller by the name of Rex Energy. Rex has its headquarters in State College, PA and concentrates on just the Marcellus and Utica Shale region. Over the past year as prices have gone down for natural gas, Rex has sold off various subsidiaries and non-core holdings. The company now concentrates on drilling in just three counties–one in OH and two in PA (see Rex Energy to Sell Acreage in OH & PA, Focus on 3 Counties). Rex has had its financial struggles. In fact, in February it landed on David Fessler’s “Oil Company Death List,” an indication Rex’s debts may overwhelm its revenues (see 19 Oil/Gas Companies on “Death List” – 8 are in Marcellus/Utica). But Rex has soldiered on, trimming and cutting back. Yesterday we told you Rex announced a new addition to the board of directors (see Unusual Move: Rex Energy Adds Analyst to its Board of Directors). Seems like a good fit. But we asked the question, is something more at work here than just adding a new expert to the team? We have no proof of a connection, but not long ago a private investment hedge fund run by Zac Hirzel–Hirzel Capital Management–filed a Form 13G with the Securities and Exchange Commission to declare the fund has purchased nearly 5 million shares of Rex–or 9% of all outstanding shares…
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Energy Companies | Pennsylvania | Statewide PA | WPX Energy

WPX Completes $200M Sale to Still-Unnamed Buyer in NE Marcellus
May 28, 2015May 28, 2015

Earlier this month MDN told you that WPX Energy had sold contracts and contracted capacity to buy and sell natural gas on on Transco’s Northeast Supply Link pipeline for $200 million to an undisclosed buyer (see Mystery Buyer to Pay WPX Energy $200M for NE Marcellus Assets). We told you our best guess for who the buyer likely is: Southwestern Energy, the same company that just completed purchasing WPX’s leases and wells in Susquehanna County in February for $300 million (see WPX Finalizes Sale of NEPA Marcellus Leases/Wells to Southwestern). Yesterday WPX issued a press release to say the deal is now done and the money in the bank–but they still don’t/won’t name who the buyer was…
Read More “WPX Completes $200M Sale to Still-Unnamed Buyer in NE Marcellus”
Anti-Drilling/Fossil Fuel | Energy Companies | Exxon Mobil | Industrywide Issues | New York | Tompkins County

Park Foundation Resolution Defeated by ExxonMobil Shareholders
May 28, 2015May 28, 2015

It’s not often (enough) that the odious and disgusting Park Foundation suffers a total defeat–so we do a happy dance when it happens. It happened yesterday at ExxonMobil’s annual meeting where shareholders handed the Park Foundation (of Ithaca, NY) a humiliating defeat of their resolution that Exxon compose a cockamamie report every year detailing the so-called “risks” involved with unconventional drilling. Apparently the self-loathing Park Foundation wants Exxon to become self-loathing too–to produce a report that essentially says they’re creeps destroying Mother Earth by fracking. Three-fourths of Exxon shareholders said “no thanks.” Shareholders also voted down an idiotic proposal by a group of Catholic priests from Milwaukee who have lost their first love (Jesus Christ) in favor of a new love (Global Warming) to put a global warming expert on the board of directors. Ah, excuse us Fathers, whatever happened to your vow of poverty? Seems the priests of Milwaukee now have more money than the Lord Himself and want to throw their weight around at shareholder meetings rather than save souls…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Triad Hunter | Tyler County | West Virginia

Magnum Hunter Sells 5K Acres for $41M in Tyler County, WV
May 27, 2015May 27, 2015

Magnum Hunter Resources’ drilling subsidiary, Triad Hunter, is selling 5,210 net acres of leases in Tyler County, WV to an undisclosed competitor for $40.8 million, the company announced yesterday. The sale will take place tomorrow. According to MHR, the acreage is “non-core,” “undeveloped,” and “unproven.” The leases on the acreage are also set to expire soon, so it’s drill now or never–and for MHR, it was never. Why not convert that acreage into some cold, hard cash? Incidentally, if you do the math, it works out to be a sale price of $7,831 per acre…
Read More “Magnum Hunter Sells 5K Acres for $41M in Tyler County, WV”
Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Washington, PA Neighborhood Concerned about Range Drilling Plan
May 27, 2015May 27, 2015

There are, in MDN’s book, two types of opposition to shale drilling–legitimate and illegitimate. Under the illegitimate heading are the nutters who want to ban shale drilling because it extracts a fossil fuel. We call them global warming Kool Aid drinkers. They lie about shale drilling at every turn in an attempt to enlist the support of the hoi polloi, the common folk, to oppose it. That’s what’s happened in New York. Then you have what we would call legitimate opposition–or perhaps a better word is “concern” about shale drilling. That comes from people who live in residential neighborhoods who aren’t thrilled about the truck traffic, noise, dust, nighttime lights and other negatives that come with shale drilling. The adult approach is to try and find a compromise–a way to accommodate shale drilling but reduce its impact on those who live nearby. Range Resources faces such a situation with a plan to drill a 3-well pad that may eventually go to 10 wells in a residential area of Chartiers (Washington County), PA. The pad would be about 1,000 feet from the nearest home–less than 2/10ths of mile. The neighbors are understandably concerned…
Read More “Washington, PA Neighborhood Concerned about Range Drilling Plan”
Energy Companies | Rex Energy

Unusual Move: Rex Energy Adds Analyst to its Board of Directors
May 27, 2015May 27, 2015

Rex Energy has a new member on its board of directors–Jack N. Aydin. We don’t typically report on new additions to boards of directors, but this one is unique and different. Normally board members (of exploration and production companies) have experience working for other E&Ps. Or board positions are awarded to major stockholders–sometimes referred to as “activist investors” (what used to be called corporate raiders). Jack Aydin is the only person we’ve heard of that has made the transition from E&P analyst to the board room…
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