Energy Companies

Antero Resources | Energy Companies | Lease & Royalty Payments | Noble Energy | Tyler County | West Virginia

Record High Bid to Drill Under Bambi’s Home in Tyler County, WV
November 25, 2014November 25, 2014

Looks like drilling and fracking adjacent to, and underneath, the Ohio River isn’t the only state-owned asset West Virginia has in mind to raise revenue (see Gastar Wins Lease to Drill Under Ohio River in WV). Last Friday, WV opened bids that will allow drilling under the 518-acre Conaway Run Wildlife Management Area in Tyler County, WV. Yes, those heartless monsters want to allow drilling and fracking under Bambi’s home–can you believe it?! The bids received will make your eyes pop out–some of the highest (perhaps THE highest) amounts offered in a signing bonus to date…
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Columbia Pipeline Group | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | NiSource | Ohio | Utica Shale

Hilcorp Begins Drilling the Brinker Field in Columbiana County, OH
November 25, 2014November 25, 2014

Funny how old stories become new again. Back in September 2012 MDN first told you about the Brinker Storage Field, a 35,000-acre area in Columbiana County, OH used by Columbia Gas to store natural gas supplies in the Berea Sandstone formation. They’ve been storing gas in it for more than 50 years. The problem that we highlighted back in 2012 is that landowners, who signed leases to allow that storage, were going to get shafted out of royalties for leases Columbia had signed with Hilcorp to drill Utica Shale wells under the Brinker area (see Columbia Gas & Hilcorp Meet with Landowners in Brinker Field). A few months after a meeting with Columbia and Hilcorp reps, many landowners signed revised leases that cut them in on the action–with a 15% royalty (see Some Brinker Field (OH) Leases Revised, Others in Lawsuit). However, some landowners sued. It appears they lost since Hilcorp has filed for permits to begin active drilling in the Brinker. The Ohio Dept. of Natural Resources (ODNR) has already approved 6 of 25 permit applications from Hilcorp, and we expect the others will also be approved…
Read More “Hilcorp Begins Drilling the Brinker Field in Columbiana County, OH”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot O&G Presentation: Scaling Back 1 Rig in Marcellus in 2015
November 25, 2014November 25, 2014

Cabot Oil & Gas recently participated in the Merrill Lynch 2014 Energy Conference in Miami, Florida. Hey, somebody has to suffer by attending these things, right?! No, weren’t there (wish we were). But we do have a copy of their PowerPoint slide presentation from the event, complete with updates on their Marcellus program. Of note and interest: Due to low gas prices and lack of pipeline infrastructure, Cabot is scaling back just a bit in 2015–moving from 6 drilling rigs to 5 rigs next year in the Marcellus. But that certainly doesn’t mean the monster production from Cabot will let up. The company’s production continues to climb year after year–exponentially…
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Energy Companies | Greene County (PA) | Lease & Royalty Payments | Marshall County | Ohio County | Pennsylvania | Tug Hill Operating | Utica Shale | West Virginia

Still Time for WV/PA Landowners to Participate in $100M Deal
November 24, 2014November 24, 2014

Landowner coalitions are certainly not new. They began in the Marcellus region around seven years ago when landowners in Pennsylvania banded together to get rates and conditions more favorably than they otherwise could on their own. Smart idea. What is new is that landowners in West Virginia are now banding together because, although Marcellus drilling takes place in the state and much of that land has been leased, the Utica Shale that underlies the state is just now getting started. So landowners, like those in Marshall and Ohio counties (in the panhandle of WV) and Greene County (in southwest PA) are forming new groups to negotiate new leases for the Utica Shale. The Marshall/Ohio/Greene landowner group did just that, recently signing a $100 million deal (see Panhandle WV Landowners Broker $100M Deal with Tug Hill Operating). A few more details about the group and the deal…
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Energy Companies | Guest Post | Lease & Royalty Payments | Olympus/Huntley & Huntley

Guest Viewpoint: Best to Lease ALL Rock Layers at One Time
November 24, 2014November 24, 2014

Last week MDN told you about possibility that a rock layer some 20,000 feet below the surface may one day be an important player in natural gas and oil for the northeast (see Trenton-Black River: New Natgas Rock Layer in Your Future?). As part of that story, we wrote the following: “Landowners listen up. When you lease, ALWAYS specify the layer(s) in the lease that you will allow an energy company to drill. That way, in future years when yet other layers are “discovered” to have natural gas or oil deposits, you can re-lease for the new layer. Energy companies will understandably want to negotiate a lease for all layers. Landowners (and their lawyers) need to watch for and construct leases that favor the landowner. A word to the wise…” An MDN subscriber wrote us to take issue with that statement, to point out potential weaknesses in our argument. We are happy (with permission) to bring you the following guest post from Paul David Burke, VP & General Counsel for Huntley & Huntley, Inc…
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Energy Companies | Pennsylvania | Statewide PA | WPX Energy

Flip Flop: All of WPX’s Marcellus Wells on the Auction Block
November 21, 2014November 21, 2014

A bit of news we find troubling. MDN has told you, since February of this year, that WPX would not be drilling any new wells in the Marcellus and in fact would be selling their undrilled leases (see WPX Marcellus Assets Being Shopped in “Controlled Auction”). However, we were contacted by WPX spokesperson Susan Oliver to assure us that they were not selling their already-drilled 100+ wells (see WPX Gives MDN an Update on Their 2014 Marcellus Plans). We figured some of those wells may be sold if there was, say, one or two wells on a pad adjacent to undrilled acreage with the opportunity to drill more wells. But for those wells already drilled and fully developed? Those wells, we were told, would remain in the WPX portfolio. However, an article appearing in the Pittsburgh Tribune-Review on Wednesday contradicts that previous assertion…
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Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Pennsylvania | Rex Energy

Martians & Enviro Groups Continue to Block Rex Drilling in W PA
November 21, 2014November 21, 2014

Martians have successfully delayed Rex Energy from continuing to drill a series of five Marcellus wells on a single pad in Middlesex Township (western Pennsylvania). You may recall that two so-called environmental groups (front groups for rigid anti-drillers)–THE Delaware Riverkeeper and the Clean Air Council, both based on the other side of the state in the Philadelphia area–along with four parents from the Mars school district, filed an appeal of the decision to allow the drilling to occur in Middlesex Township (see Rex Drilling Operation Near Mars School Put on Hold). The Mars school district is some 3/4 of a mile from the drilling site–never mind at least two other schools in PA, one near Mars, allows drilling ON SCHOOL PROPERTY! Nope. The Martians are insistent that Rex not be allowed to drill those wells because it will endanger the kiddies. So a zoning board hearing was held Tuesday night and “continued” until another meeting at the end of December. Town officials say they may end up holding five hearings total on the matter (one for each well?) before it’s concluded. Meanwhile, no more drilling for Rex at that site…
Read More “Martians & Enviro Groups Continue to Block Rex Drilling in W PA”
Anti-Drilling/Fossil Fuel | Energy Companies | Indiana County | Industrywide Issues | Litigation | Pennsylvania | Pennsylvania General Energy | Wastewater

Little Mahoning Watershed to Testify in Court Case (??)
November 21, 2014November 21, 2014

You have to give the silly anti-fossil fuel nutters one thing–they sure are creative. The latest nonsense to come from the extreme left is that artificial constructs like watersheds now have “rights” and can somehow speak for itself. At least that’s what’s being claimed in a “first of its kind” motion by–yes–the Little Mahoning Watershed (Indiana County, PA). We wonder, what does the Watershed’s voice sound like? And where, precisely, did the Watershed scribble down its statement that was recently delivered to the court? We’d like to see that place and behold that miracle. This would all be rolling-on-the-floor funny if extremists weren’t so hellbent on bastardizing our laws and the U.S. Constitution–to the point our legal system becomes meaningless. The Community Environmental Legal Defense Fund (CELDF), which hangs its hat in Mercersburg, PA, says Little Mahoning Watershed spoke to it and whispered it doesn’t want to be polluted by nasty frack wastewater…
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Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Lackawanna County | Luzerne County | Pennsylvania | Pipelines | Susquehanna County | UGI Energy Services | Wyoming County (PA)

UGI Turns on New Pipeline for Cabot in NEPA
November 21, 2014November 21, 2014

In May 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 mined natural gas from Cabot Oil & Gas in Susquehanna County to residents in the greater Scranton/Wilkes-Barre area (see UGI Energy Building 2 New Pipelines in NEPA for Cabot O&G). Today UGI announced one of those pipelines is now completed and flowing cheap Marcellus Shale gas to NEPA residents, which will result in lower rates. The other will be completed in the spring of next year. Now what was that about the “lucky few landowners” who are the only ones to benefit from Marcellus Shale gas?…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Statewide WV | Susquehanna County | West Virginia | Wood County

Full Circle for Cabot O&G: From WV to PA and Back Again
November 20, 2014November 20, 2014

On Monday, MDN highlighted a pair of stories from West Virginia in which we noted that Cabot Oil & Gas, a Texas-based company that (so far) has concentrated its Marcellus Shale drilling in Susquehanna County, PA, had drilled and plugged a well in West Virginia that seems to be aimed at the Utica Shale (and/or Marcellus) in that state (see Cabot’s Wood County, WV Utica Well – Vertical or Horizontal Miss?). Cabot is one of the most prolific producers of Marcellus Shale gas, producing an incredible 2 billion cubic feet per day of natural gas from Susquehanna, a single county in northeast PA (see Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!). It piqued our interest that Cabot may be nosing around a “new” area (for them) for horizontal shale drilling, so we asked George Stark, Cabot spokesman, about it. He called us yesterday to elucidate…
Read More “Full Circle for Cabot O&G: From WV to PA and Back Again”
Bradford County | Energy Companies | Lycoming County | Pennsylvania | Southwestern Energy | Sullivan County | Susquehanna County | Tioga County (PA) | Wyoming County (PA)

Southwestern’s 5th Anniversary in Marcellus, Joins 1 Bcf/d Club
November 20, 2014November 20, 2014

While researching another story for today about DTE Energy expanding their pipeline system for Southwestern Energy, we noticed a bit of news from Southwestern that had (until now) slipped by us. Southwestern is one of the oldest and top exploration & production companies in northeast Pennsylvania. On September 30, the company marked their fifth year of drilling in NEPA. So far the company has, according to their records, produced 348 billion cubic feet of natural gas in NEPA. The big news: Southwestern figures by the end of this year they will have spent $700 million on, and will be producing an average 1 billion cubic feet of natural gas per day in, the Marcellus. Welcome to the 1 Bcf/d Club!…
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DTE Energy | Energy Companies | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Southwestern Energy | Susquehanna County

DTE Expanding NEPA Pipeline System for Southwestern Energy
November 20, 2014November 20, 2014

DTE Energy and Southwestern Energy Co. signed an agreement yesterday to “significantly expand” their relationship in northeast Pennsylvania’s Susquehanna County area. DTE provides gathering pipelines for Southwestern’s wells in Susquehanna County. Southwestern, along with Cabot Oil & Gas, is a top producer in Susquehanna County. The agreement calls for DTE to increase “gathering assets by approximately 50 percent in Susquehanna County” by 50%–meaning build new gathering pipelines. DTE will also increase the capacity of their Bluestone Pipeline which connects to both the Millennium Pipeline (in Broome County, NY) and to the Tennessee Gas Pipeline (in Susquehanna County). Here’s the announcement from yesterday…
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Energy Companies | Energy Corporation of America | Kanawha County | West Virginia

ECA’s New Regional HQ in Charleston: More WV Drilling on the Way?
November 19, 2014November 19, 2014

Energy Corporation of America (ECA) is a privately owned company founded in 1963 with corporate headquarters in Denver, CO. The company owns and operates approximately 4,600 (mostly vertical) wells, 5,000 miles of pipeline, and leases more than 1 million acres in North America alone. Most of ECA’s leased acreage is in the northeast, so it came as no surprise when they announced last year that they would build a new regional HQ that will house more than one-third of their employees (see ECA Breaks Ground on WV Regional HQ, Donates $600K to Clay Center). The brand spanking new regional HQ building in Charleston, WV is done (cost $10 million to build) and some 115 employees are now moved into a 60,000 square foot building with room for up to 200 employees. But MDN has discovered a head-scratcher…
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Belmont County | Energy Companies | Ohio | Rice Energy | Utica Shale

Single Rice OH Utica Well Produces 2 Bcf in 5 Months!
November 18, 2014November 18, 2014

What adjectives and superlatives can you use to describe a single shale well that produces 2 billion cubic feet of natural gas in five months? That’s how much has been produced by Rice Energy’s Bigfoot 9H well in Belmont County, OH. If you figure Rice is getting an average $4 per thousand cubic feet for the gas, that means the gas sold from that well over the past five months has grossed the company something like $8 million. If the landowners get a 20% royalty from the well, that’s a $1.6 million check. “Darn impressive” is perhaps the understatement of the year…
Read More “Single Rice OH Utica Well Produces 2 Bcf in 5 Months!”
Carrizo Oil & Gas | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA | Utica Shale

Carrizo Scales Back in Marcellus, Keeps Drilling in Utica
November 18, 2014November 18, 2014

What a difference three months can make. In second quarter 2014 Carrizo Oil & Gas drilled 9 Marcellus wells and purchased more Utica acreage (see Carrizo 2Q14: Drills 9 Marcellus Wells, Buys More Utica Acreage). In third quarter 2014, Carrizo didn’t drill or complete any Marcellus wells, they began work to complete their second-ever Utica well and now have plans to drill only 5 more Utica wells in 4Q13. The problem seems to be lack of infrastructure (pipelines) to carry any production from their wells to market, as well as stubbornly low prices for natural gas in the northeast–leading to voluntary “curtailment” on the part of Carrizo (they shut the wells off for a period of time). Carrizo is re-focusing their efforts on the more oily Eagle Ford and Niobrara Shale plays…
Read More “Carrizo Scales Back in Marcellus, Keeps Drilling in Utica”
Centre County | Clearfield County | Energy Companies | Pennsylvania | Statewide PA | Susquehanna County | Westmoreland County | WPX Energy

Scranton Newspaper Discovers WPX is Leaving PA–9 Months Later
November 18, 2014November 18, 2014

Better nine months late than never, we suppose. Back in February, MDN told you that WPX Energy is leaving the Marcellus (see WPX Energy Abandoning the Marcellus? Sure Looks That Way). We got clarification from WPX spokesperson Susan Oliver that although they would not drill any new wells, they will continue to operate at least some of the 100+ wells already drilled (see WPX Gives MDN an Update on Their 2014 Marcellus Plans). Over a month ago we told you that WPX is actively shopping their remaining undrilled acreage (see WPX Marcellus Assets Being Shopped in “Controlled Auction”). The Scranton Times-Tribune finally woke up (nine months later) and, shazam! They discovered that WPX is (can you believe it?) leaving PA…
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