Energy Companies

American Energy Partners | Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Aubrey McClendon Leases Rigs from Chesapeake to Drill in the Utica
April 21, 2014April 21, 2014

Aubrey McClendon, the former CEO of Chesapeake Energy (before corporate raider Carl Icahn tossed him from the company he founded) is back in business with Chesapeake. Sort of. McClendon’s new company, American Energy Partners, which is set to go great guns in the Ohio Utica Shale, is leasing drilling rigs from Chesapeake for $26,000 per day–six of them (with a seventh at $23,500 per day). Makes for strange bedfellows, no? But hey, a rig’s a rig’s a rig. Doesn’t matter who owns it. What matters is to get drilling now, before the competition. And Aubrey is all over it.

However, Aubrey is being mum on the arrangement. Here’s the little that is know, picked up from Chesapeake’s financial filings with the SEC…
Read More “Aubrey McClendon Leases Rigs from Chesapeake to Drill in the Utica”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell

Big News from Shell PA Meetings: Beaver County WANTS a Cracker!
April 17, 2014April 17, 2014

Yesterday Shell held two meetings in Beaver County, PA to talk to area residents about their proposed plan to possibly build a multi-billion dollar ethane cracker plant. One session was from 11 am to 2 pm, the other from 4-7 pm, both held at the Shadow Lakes country club in Hopewell. Shell expected around 350 people to show up for the daytime session–more than 700 showed. By the end of the day, well over 1,000 people attended the two sessions. As predicted, Shell did not say they’ve decided to move forward, but they are still actively pursuing the project. From that perspective, neither event produced anything “newsworthy.”

Yet, there was big news coming from the two sessions: Attendance was twice what they expected, and the overwhelming majority of those attending support the project and want to see it built. We would go so far as to say Beaver County came out in force with open arms and rolled out the red carpet for Shell. They WANT this cracker plant, and they want it bad. Which is good news for Shell–to have such overwhelming community support…
Read More “Big News from Shell PA Meetings: Beaver County WANTS a Cracker!”
Bradford County | Chesapeake Energy | Crime | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Statewide PA

PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue
April 17, 2014April 17, 2014

Pennsylvania Attorney General Kathleen Kane’s office is interviewing people on the Chesapeake Energy royalties screwing scandal, reportedly. We have mixed emotions about it. Yes, the state needs to investigate and see if there has been malfeasance. However, we question whether an avowedly anti-drilling AG has the moral or ethical ability to do so honestly. Yes, we ARE questioning her fitness for the office. Problem is, Gov. Tom Corbett and other PA Republicans like State Sen. Gene Yaw asked her to investigate–so it’s on their heads if she turns into the proverbial bull in a china closet and takes the opportunity to try and destroy the drilling industry as part of her “investigation.”

Here’s the latest from the rumor mill on Kane’s so-called royalty investigation…
Read More “PA AG Kathleen “Anti-Driller” Kane Probes Chessy Royalty Issue”
Endeavour Intl | Energy Companies | Industrywide Issues | Litigation | McKean County | Pennsylvania | Potter County | SM Energy

Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties
April 17, 2014April 17, 2014

In July 2011 MDN told you that independent energy company Endeavour International entered into a deal with SM Energy for 50,000 Marcellus Shale acres, three producing gas wells and a pipeline located in McKean and Potter counties in Pennsylvania. The deal was worth $110 million (see Endeavour International Buys Lease for Additional 50K Marcellus Acres & Local Pipeline in PA from SM Energy). Five months later Endeavour pulled out of the deal and SM Energy threatened to sue (see Endeavour Leaves SM Energy at the Altar, SM Ready to Sue).

SM Energy made good on its threat and for the past 2 1/2 years the deal has been tied up in court with both sides suing each other. Endeavour said there were problems with clear title to the property and that the pipeline was not up to scratch. SM said they didn’t misrepresent anything and Endeavour simply got cold feet. Lots of lawyers and legal fees ensued. Today Endeavour issued an announcement that all of the suing and counter-suing is over and both sides have now settled…
Read More “Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties”
Energy Companies | Noble Energy

Changes at the Top for Noble Energy – Chairman & CEO Retiring
April 17, 2014April 17, 2014

Some top leadership changes are on the way for Noble Energy–a big energy company with big operations in the Marcellus and Utica Shale region. Current Chairman and CEO Charles Davidson will retire May 1, 2015. Stepping up to the big chair will be David Stover. Stover, currently president and COO, will take on the CEO role in October of this year and (presumably) the chairmanship next May when Davidson retires.

Here’s the kumbaya press release from Noble announcing everyone loves everyone (and yes, Noble is a company we love and highly respect–we just couldn’t help poking a little fun at the announcement and its gushing tone):
Read More “Changes at the Top for Noble Energy – Chairman & CEO Retiring”
Energy Companies | Fossil Creek | Lease & Royalty Payments | Marshall County | Utica Shale | West Virginia

Fossil Creek Targets WV Utica Shale, Big Bucks for Leases/Drilling
April 16, 2014April 16, 2014

The Utica Shale “rush” has arrived–in West Virginia. Bedford, TX-based Fossil Creek Ohio (a company we’ve not heard of before today) is signing up Utica Shale leases in Marshall County, WV and says they will begin to sink wells “in the near future.” Fossil Creek President Chris Rowntree declined to say how much the company is paying for lease bonuses and royalties, but he did say it’s more than any other company is paying (which would indicate something north of $7,000 per acre and 20% royalties).

Also of interest to MDN are the numbers thrown out by Fossil Creek for how much they will spend to drill a single Utica well in WV: $22 million on average. That is a startling number. Most Marcellus wells in the area cost around $7 million to drill. If you spend three times that to drill a Utica well, you better be convinced you’ll get three times the return you would receive from a typical Marcellus well to make it a profitable venture–unless you simply have money to burn. Yes, color us skeptical that anyone will make money by spending $22M to drill a shale well! Here’s more on Fossil Energy and several other companies pursuing the Utica Shale “rush” in the Mountain State…
Read More “Fossil Creek Targets WV Utica Shale, Big Bucks for Leases/Drilling”
Beaver County | Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Meetings Today in Beaver County, PA on Ethane Cracker Plant
April 16, 2014April 16, 2014

Shell is holding two public meetings today at the Shadow Lakes club in Hopewell (Beaver County), PA to discuss the possibility of building a multi-billion dollar ethane cracker plant in Monaca, PA. The meetings, according to Shell, are not an indicator that Shell has decided to move forward with the project. The meetings are, according to Shell, a way for the company to hear concerns from the people who live in the area and would potentially be affected by the plant, and for Shell to share information on where the project stands at this point and what’s ahead. It’s all about good, two-way communication.

More details about the meetings today, and a brief background on the proposed Shell ethane cracker…
Read More “Shell Meetings Today in Beaver County, PA on Ethane Cracker Plant”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Shore Exploration & Production | Statewide VA | Virginia

Virginia Inches Closer to Shale Drilling in Taylorsville Basin
April 16, 2014April 16, 2014

For some time MDN has been watching the first stirrings of what may eventually be horizontal drilling and fracking in Virginia. But it’s not along the western fringes where the Marcellus layer is present. Instead, the attention has been in the eastern/central part of the state (see Fracking Finally on the Way in Virginia? Maybe Yes, Maybe No). Virginians, like Marylanders, New Yorkers and others that haven’t yet experienced the miracle of Marcellus Shale drilling have been fed a line of equine feces from fossil-fuel haters. Things like “It’ll contaminate yer water aquifers, man.”

We spotted an article about a very interesting meeting between Texas-based Shore Exploration and Production and area residents at a town hall meeting at the University of Mary Washington in Dahlgren (King George County), VA on Monday. From the article we learn that Shore has now leased 84,000 acres in the Taylorsville basin–south and east of Fredericksburg, VA. We also learn that the company’s CEO Ed DeJarnette, who presented at the meeting, is in ill-health and close to death. DeJarnette said he wants to use non-water-based hydraulic fracturing. His preference is to use nitrogen fracking (which is interesting to us). But DeJarnette, under heavy questioning, admitted Shore may sell the leases and he couldn’t guarantee whoever buys those leases will not use water-based fracking. Here is a report of the lively and interesting meeting from Monday…
Read More “Virginia Inches Closer to Shale Drilling in Taylorsville Basin”
Anti-Drilling/Fossil Fuel | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Shore Exploration & Production | Statewide VA | Virginia

Energy Co Exec Gets in the Face of Virginia Anti-Driller
April 16, 2014April 16, 2014

Shore Exploration and Production CEO Ed DeJarnette Jr. addressed a town hall style meeting at the University of Mary Washington in King George County, VA on Monday night (see our companion article). There were residents there who had honest questions and concerns about the potential for shale drilling and fracking in their neighborhood. And then there were the stock, knee-jerk, hackneyed anti-drillers, as there always are. You can usually spot them because they like to stick video cameras in your face, like Mary Trout (from King George, VA) likes to do. Apparently they’re so starved for attention they turn to posting boring videos on YouTube for their 15 seconds of fame.

When Mary tried to pester Ed DeJarnette with questions about fracking, he literally got in her face–so she couldn’t record what he was saying with her ubiquitous camera. Love it! We wish more pro-drillers would use that tactic–throw it right back at the opposition and “get in their face.” Here’s how it went Monday night…
Read More “Energy Co Exec Gets in the Face of Virginia Anti-Driller”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrialization | Industrywide Issues | Noise | Ohio | Statewide OH | Trucking | Utica Shale

Is MWCD Lease for Piedmont Lake, OH with Antero a Good Thing?
April 15, 2014April 15, 2014

MDN previously reported that as early as this Friday the Muskingum Watershed Conservancy District (MWCD) will vote to approve a proposed lease that would allow Antero Resources to drill around, and even under, Piedmont Lake (see MWCD Close to Signing Utica Lease for Piedmont Lake, OH Property). We told you yesterday that a lawsuit to prevent drilling at another MWCD property–Seneca Lake–is proceeding, which begs the question, will something similar happen with the Piedmont Lake deal (see Anti-Drillers Win Minor Victory Against Muskingum Watershed Dist)?

MDN was contacted by a reader who lives in the Piedmont Lake area–Eric Fenster. Eric seems like a reasonable guy–not adamantly opposed to all shale drilling. But he is concerned about what may happen if Antero leases and begins to drill in the Piedmont Lake area. Eric tells MDN he lives a few miles from an active drill site (not under MWCD oversight) and has personally experienced 24/7 truck traffic, noise and flaring from that site. He’s not excited about more of it near where he lives. Eric’s chief concern is that the lease as proposed is essentially unenforceable when it comes to industrialization concerns like truck traffic, noise and lights. He believes the MWCD has the right to enter into the lease legally, but he views such an agreement as an abuse of MWCD’s stewardship and authority. We bring you Eric’s viewpoint (below) not because we agree or endorse it, but because he’s one of the few who respectfully wants to argue the opposing viewpoint and make a case for his views based on logic and reason. We appreciate that. You decide if his arguments have merit…
Read More “Is MWCD Lease for Piedmont Lake, OH with Antero a Good Thing?”
Antero Resources | Energy Companies | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

More Info on MWCD Proposed Lease with Antero Resouces
April 15, 2014April 15, 2014

See our companion story today about the potential downsides to drilling around the 6,700-acre area around (and under) Piedmont Lake in Ohio. We also spotted a brief story the deal that stands a good chance of being signed on Friday. Here’s a status report…
Read More “More Info on MWCD Proposed Lease with Antero Resouces”
American Energy Partners | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

Aubrey McClendon Wants Ohioans to Help Him Frack the Utica
April 15, 2014April 15, 2014

Good news for Ohio Gov. John “foreigner hunter” Kasich: The man who once famously said he’s the biggest fracker in the world, former Chesapeake Energy CEO Aubrey McClendon, wants Ohians to help him frack the Utica Shale in Ohio. Aubrey’s new company, American Energy Partners, has a huge “help wanted” billboard along Route 315 near Ohio State University (Columbus, OH). Since Aubrey was booted from Chesapeake Energy last year by corporate raider Carl Icahn, he’s started a new company and has hauled in over $3 billion of seed capital to keep on frackin’.

Want a good job? Contact American Energy Partners in Ohio…
Read More “Aubrey McClendon Wants Ohioans to Help Him Frack the Utica”
Antero Resources | Energy Companies | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Statewide WV | Tennessee Gas Pipeline | West Virginia

Antero Resources Sops Up 100% of TGP Pipeline Expansion in WV
April 15, 2014April 15, 2014

Kinder Morgan announced they have a single customer that will use up 100% of the capacity for their Tennessee Gas Pipeline’s (TGP) Broad Run pipeline expansion in the West Virginia Marcellus. Antero Resources, a major Marcellus and Utica driller, has signed on with Kinder Morgan for 100% of the capacity in the Broad Run expansion–which amounts to 790,000 dekatherms per day. The contract will go for 15 years. Antero obviously plans to produce a great quantity of natural gas in the West Virginia Marcellus.

More of the details on the just-concluded open season for the Broad Run expansion project for the TGP:
Read More “Antero Resources Sops Up 100% of TGP Pipeline Expansion in WV”
Earthquakes | Energy Companies | Hilcorp Energy | Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

ODNR Says Youngstown Earthquakes “Probably” Caused by Fracking
April 14, 2014April 14, 2014

Although they don’t know for certain, the Ohio Dept. of Natural Resources (ODNR) is assuming that Hilcorp’s Utica Shale drilling and fracking in the Youngstown area a month ago is the “probable” cause of a series of earthquakes in the area (see # of Youngstown Earthquakes go from 2 to 11 – Fracking to Blame?). A few of the earthquakes were barely felt by some people. Most of the 11 quakes were not noticeable by humans on the surface. On Friday the ODNR instituted a new policy requiring drilling and fracking near known faults and active earthquake areas to use a seismic monitor. If a 1.0 or higher quake occurs during drilling and fracking, all drilling will stop until it’s investigated.

If we assume the Ohio quakes in March were caused by fracking over a “previously unknown microfault” as the ODNR assumes, this would be the fourth such instance of fracking itself causing an earthquake–out of 60,000+ horizontally fracked wells (see Fracking has (so far) Triggered Earthquakes 3x – Out of 60K Wells). Statistically speaking it’s still zero. It’s important to a) acknowledge it can happen, but b) keep it in perspective. You have a greater chance of being struck by lightening than of experiencing a fracking-triggered earthquake. It only happens in specific, rare circumstances. Here’s the statement (and map) from the ODNR on how they’re going to treat drilling near faults and previous earthquake zones…
Read More “ODNR Says Youngstown Earthquakes “Probably” Caused by Fracking”
Energy Companies | EnerVest | EQT Corp | EV Energy Partners | Ohio | Statewide OH | Utica Shale

Utica Shale Oil Far from Dead – EnerVest, EQT Try Again
April 14, 2014April 14, 2014

In September 2012 EV Energy Partners/EnerVest put 539,000 Ohio Utica Shale acres on the auction block. It didn’t sell. A year ago they announced they would begin selling sections piecemeal, a strategy that has netted a few sales since then (see EnerVest Strategy: Sell Utica, Drill Vertical, Expand Midstream). However, EnerVest still retains a lot of Utica acreage–in fact they are the largest Utica acreage holder according to the NGI’s Shale Play Factbook (with 903,000 acres, more than Chesapeake!).

A recent article in the Akron Beacon Journal takes a look at EnerVest’s interest in figuring out how to get the oil that everyone knows is present in the Utica, out of the ground. The company recently got approval from the Ohio Dept. of Natural Resources to drill two Utica wells targeted at getting oil in southern Tuscarawas County. EnerVest is not the only driller who is taking another run at striking oil in the Utica…
Read More “Utica Shale Oil Far from Dead – EnerVest, EQT Try Again”
Accidents | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | Range Resources Corp | Regulation | Wastewater

Range Resources Fined $75K by PA DEP for Brine Spill
April 14, 2014April 14, 2014

On Friday the Pennsylvania Dept. of Environmental Protection slapped Range Resources with a $75,000 fine for a brine spill of 3,066 gallons at its Cornwall Mountain Hunting Club Unit A well pad in Lewis Township, Lycoming County. The spill occurred in July 2012, but according to the DEP it took Range nearly a year to remediate the spill, resulting in the fine.

Here’s what happened (and when), and what the DEP said about it…
Read More “Range Resources Fined $75K by PA DEP for Brine Spill”