Energy Companies

Doddridge County | Energy Companies | EQT Corp | Industrywide Issues | Lease & Royalty Payments | Litigation | West Virginia

WV Landowner Tries to Stop Shale Drilling with New Water Wells
September 30, 2013September 30, 2013

Here’s a novel approach by a landowner to try and stop drilling on land already leased. A landowner in Doddridge County, WV didn’t like how he was being treated by driller EQT, so he drilled several water wells close to where EQT planned to drill Marcellus Shale gas wells on his property. In WV, you can’t drill within 250 feet of a water well–so the water wells effectively shut down drilling on his property.

Except… EQT is now suing the landowner for bad faith and intentionally trying to obstruct a signed contract. Based on the facts in the case, we expect EQT will prevail. Drilling the water wells was “cheating” to prevent drilling and ultimately to get out of the lease. Creative, perhaps–but misguided…
Read More “WV Landowner Tries to Stop Shale Drilling with New Water Wells”
Antero Resources | Energy Companies

Antero Resources Offers 30M Shares of Stock in IPO
September 30, 2013September 30, 2013

Antero Resources is a major privately-owned driller operating in both the Marcellus and Utica Shale plays. Antero is aggressively pursuing both plays as well as aggressively pursuing the money they’ll need to drill in them. In early September, Antero secured a $250 million line of credit for drilling (see Antero Resources Gets Extra $250 Million Credit Line). Just two weeks ago Antero announced they were investing an extra $500 million in Marcellus/Utica drilling–this year (see Antero Ups 2013 Budget Extra $500M for Marcellus/Utica Drilling). In August, Antero announced they’re building a $525 million water pipeline from the Ohio River to their well sites (see More on that Half Billion Dollar Antero Water Pipeline in WV).

The nosebleed rate of Antero’s spending almost leaves one out of breath! So where will the company get the money to do it all? A $250M LOC won’t do the trick by itself. We know, we know! Go public. And so they are. Antero announced this morning they will offer 30 million shares they hope will raise in the neighborhood of $1.4 billion for the company. Just one word of advice to Antero: watch out for corporate raiders like Carl Icahn…
Read More “Antero Resources Offers 30M Shares of Stock in IPO”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County | Wastewater

Mt Pleasant Tells Range Resources “No Deal” on Water Impoundments
September 30, 2013September 30, 2013

An update of the ongoing kerfuffle between Range Resources and their four water impoundments (i.e. ponds) and Mt. Pleasant Township officials in Washington County, PA (for background, see Range Water Impoundment Public Hearing Postponed 2nd Time). Mt. Pleasant recently served Range with zoning violation notices for the four impoundments–they want them all closed. Range recently proposed a compromise that would allow them to keep three of the four impoundments open.

The town board of supervisors met and discussed Range’s proposal during a rare Saturday session–and said “no thanks” to the proposal…
Read More “Mt Pleasant Tells Range Resources “No Deal” on Water Impoundments”
Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Ohio | Trucking | Utica Shale

Utica Shale Transfer Facility Gets Road Upgrade
September 30, 2013September 30, 2013

In February, MDN brought you the news that the Columbiana County Port Authority would spend nearly $1 million to improve a stretch of road leading to the Wellsville industrial park where Arrowhead Utica Pipelines, a Hilcorp subsidiary, is building a shale gas transfer facility (see Hilcorp Subsidiary Leases Property for Utica Transfer Facility). Looks like it won’t take anywhere near that much money to get the project done.

Last Friday the Port Authority voted to accept a bid and move forward to have the work done–at a cost of $526,000…
Read More “Utica Shale Transfer Facility Gets Road Upgrade”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | XTO

Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo
September 27, 2013September 27, 2013

MDN became aware that newly nominated (and currently Acting) Secretary of the PA Dept. of Environmental Protection, Chris Abruzzo, would be attending Shale Insight 2013. So we requested an interview with the Secretary, and he obliged! To our knowledge, we were the only media interview he granted during a brief walking around the show visit on Wednesday.

MDN editor Jim Willis asked Sec. Abruzzo some tough questions, including his take on the PA Attorney General’s criminal lawsuit against XTO (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO); his biggest challenge since holding the office in April; how he responds to the charge that the DEP is sometimes too cozy with the drilling industry; an update on the DEP’s study of air quality near drilling sites and compressor stations (see DEP Marcellus Air Study in SW PA Extended Extra Half Year); and his response to John Hanger (former Secretary of the DEP) about his remarks that Abruzzo’s appointment was “bizarre and irresponsible”…
Read More “Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo”
Butler County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pipelines | Rex Energy

Rex Energy Water Contamination Case Shifts Focus to Water Pipeline
September 27, 2013September 27, 2013

An update on the lingering/ongoing story of a community in western Pennyslvania (in Butler County) who say that nearby drilling by Rex Energy led to contamination of their well water supplies. The last MDN update on this story was in August of last year (see PA Residents Weary of Fight with Rex over Water Contamination). Some families have retained legal help and either have, or intend, to sue Rex. The PA Dept. of Environmental Protection, after an extensive investigation, said that Rex’s drilling is not at fault in the situation.

However, for most of the families, the issue has now progressed beyond blame–apparently water quality in the area was never the greatest to begin with. Rex had built a water line in the area to supply water for fracking and expects to turn over control/ownership of that line later this year. That water line can potentially be used to supply fresh water to the affected homes. The debate now: Who will pay to hook up the homes and to maintain the pipes and infrastructure required?
Read More “Rex Energy Water Contamination Case Shifts Focus to Water Pipeline”
Energy Companies | Gulfport Energy

Former Gulfport CEO Gets Millions from Wexford Capital – Improper?
September 25, 2013September 25, 2013

Was former Gulfport CEO Mike Liddell, who stepped down in June, a tad too cozy with an investment company that does business with Gulfport? Gulfport, you may know, is a major Utica Shale driller. A Reuters story takes aim at Liddell, questioning his relationship with investment firm Wexford Capital which has given Liddell “millions of dollars in equity interests at no cost in more than a dozen firms that have done business with Gulfport.” Gulfport says nothing improper was done and all necessary disclosures have been made to the Securities and Exchange Commission.

Will this story “have legs” and continue to reverberate in the media? It sure has all the hallmarks of the same kind of treatment the media gave former Chesapeake Energy CEO Aubrey McClendon…
Read More “Former Gulfport CEO Gets Millions from Wexford Capital – Improper?”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter
September 24, 2013September 23, 2013

Chesapeake Energy recently settled a lawsuit with Pennsylvania landowners in which they agree to pay (a pitifully small) $7.5 million to landowners after shorting them on royalty payments (see Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M). The National Association of Royalty Owners Pennsylvania chapter is telling landowners to pay “very close attention” to the settlement letter when it comes.

The settlement letter may have much broader implications than just getting a check for a few bucks from Chesapeake. It may set the rules for how your future royalties will be calculated…
Read More “Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter”
Coterra Energy (Cabot O&G) | Energy Companies | Lackawanna County | Pennsylvania | Susquehanna County

Cabot Oil & Gas Sponsors Clay Shoot for NE PA Charity
September 24, 2013September 23, 2013

Cabot Oil & Gas continues to be one of those companies that truly impresses MDN. Last year the company was a key in donating more than $2 million of its own money, and key in spurring on other companies to contribute another $2.4 million so that a stalled project to build a new hospital in Montrose, PA finally got off the ground (see Cabot Effort Raises $4.4 Million for PA Physicians Clinic). Cabot’s actions are more than just a photo op and quick PR gimmick. You don’t pony up $2 million of your own (and investors’) money, and dedicate countless hours of your staff’s time, unless you’re serious about being a good neighbor.

Cabot is “at it again”! This time they’re sponsoring a sporting clay tournament in northeastern PA with all proceeds to benefit what they call “the amazing” St. Joseph’s Center in Scranton, PA. MDN encourages you to consider going to the clay shoot or if you can’t, donating to this very worthy cause…
Read More “Cabot Oil & Gas Sponsors Clay Shoot for NE PA Charity”
Chesapeake Energy | Energy Companies | Industrywide Issues | NG Vehicles

Chesapeake Axes CNG Vehicle Program Too :-(
September 20, 2013September 20, 2013

It seems that Chesapeake CEO Doug Lawler’s ax-wielding will affect more than just the company’s bottom line–it may affect all of us. The brisk pace of layoffs at the company continues (see God, Veggies & Bees – What’s Next on the Chesapeake Chopping Block?). Sadly, one of the programs deeply affected by these reductions is the division set up to grow usage of compressed natural gas (CNG) vehicles by average consumers.

Chesapeake has been one of the leaders in producing technology to make it possible for consumers to “fill ‘er up” with CNG. However, the company’s CNG division has now also come under the budget ax, which means retail CNG efforts in this country will, at least for a time, be “substantially diminished”…
Read More “Chesapeake Axes CNG Vehicle Program Too :-(“
Allegheny County | Chevron | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania

Chevron Wins 1st Approval for New Regional HQ Near Pittsburgh
September 20, 2013September 20, 2013

In May MDN told you about Chevron’s purchase of a 61-acre site in the suburbs of Pittsburgh where they plan to build a huge, 350,000 square foot office complex that will be home to 1,750 people when it’s done (see Chevron to Build New (Big) Regional HQ in Pittsburgh Suburb). It is an important sign that Chevron is committed–in a big way–to the Marcellus and Utica Shale.

On Wednesday the Chevron project moved one step closer to reality when Moon Township officials gave it their thumbs up…
Read More “Chevron Wins 1st Approval for New Regional HQ Near Pittsburgh”
Accidents | Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Wastewater | XTO

XTO Will Pay $20M+ to Settle PA Frack Wastewater Spill Case
September 19, 2013September 19, 2013

XTO Energy (owned by Exxon) continues to fight against an egregious–perhaps illegal–abuse of power by Pennsylvania Attorney General Kathleen Kane, an anti-driller who is attempting to criminalize an accidental spill of frack wastewater hoping to make “an example” of XTO (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO).

Meanwhile, XTO has just settled the civil side of that accident by agreeing to pay more than $20 million–$100,000 in fines and $20 million to implement new procedures and technologies to ensure such a spill does not happen again…
Read More “XTO Will Pay $20M+ to Settle PA Frack Wastewater Spill Case”
Chesapeake Energy | Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Industrywide Issues | Range Resources Corp

Production from 4 Marcellus Drillers Keeps U.S. NatGas Prices Low
September 19, 2013September 19, 2013

An article on the investor website The Motley Fool does a good job of putting into context the enormous importance of the Marcellus Shale. According to the article, even though production from other major U.S. shale plays like the Haynesville has fallen in recent years, Marcellus production is up so dramatically it single-handedly keeps the price of natural gas low in this country.

The article (read it below) also gives a quick roundup of four key drillers driving the success of the Marcellus…
Read More “Production from 4 Marcellus Drillers Keeps U.S. NatGas Prices Low”
Antero Resources | Energy Companies

Antero Ups 2013 Budget Extra $500M for Marcellus/Utica Drilling
September 19, 2013September 19, 2013

Antero Resource provided an update yesterday on their Marcellus and Utica Shale operations. Among the interesting highlights: Antero has started using longer “shorter stage lengths” (SSLs) when fracking wells–going from 150-200 feet per frack stage to an average of 350 feet per stage. They report being “encouraged” by the results. Antero also announced they’re investing an extra $500 million in their 2013 capital budget for drilling in the Marcellus and Utica…

Read More “Antero Ups 2013 Budget Extra $500M for Marcellus/Utica Drilling”
Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Newest Gulfport Utica Wells Disappoint with Methane Production
September 17, 2013September 17, 2013

Last week Gulfport Energy prepared the markets (i.e. investors) to receive some “bad news”–lower-than-expected third quarter production numbers for their Utica Shale wells, partially due to lack of a pipeline hookup to a single well (see Delayed Pipeline to Single Gulfport Utica Well Impacts Market). Today Gulfport released production numbers for three Utica wells. To our eye, it seems lack of infrastructure is not the only reason Gulfport lowered expectations for 3Q13 production. The newest wells coming online for Gulfport are not producing anywhere near the amount of methane their previously announced monster wells produce. For example, the Stutzman well in Belmont County well produced an initial 21 million cubic feet of natural gas per day (see Mind-blowing Earnings from a Single Utica Shale Well). That’s to be expected. Not every well you drill is a home run.

Even though Gulfport’s newest wells are under-performers vis a vis methane (2.0-9.7 million cubic feet per day), they produce more than enough condensate and natural gas liquids to make up for it. Interestingly, all three of Gulfport’s newest wells are in Harrison County, OH…
Read More “Newest Gulfport Utica Wells Disappoint with Methane Production”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Gas Drilling Helps Save a Piece of African American History in PA
September 17, 2013September 17, 2013

Next door to Dimock (in Susquehanna County), PA is the other story about gas drilling you almost never hear about in mainstream media: How gas drilling is helping preserve an historic African America farm that dates back to the early 1800s. The reason you don’t hear much about it is because Denise Dennis, heir and president of the Dennis Farm Charitable Land Trust, changed her view on gas drilling. Three years ago Dennis gave a stirring anti-drilling speech at a Philadelphia City Council meeting saying extracting natural gas was as dirty as coal mining. Last year about this time, she signed a gas lease with Cabot Oil & Gas for $800,000 (see Leading Anti-Driller Does 180, Signs Lease with Cabot in PA). It was an about-face for Dennis…
Read More “Gas Drilling Helps Save a Piece of African American History in PA”