Energy Companies

Access Midstream Partners | Chief Oil & Gas | Electrical Generation | Energy Companies | Energy Services | Industrywide Issues | Pennsylvania | PVR Midstream | Statewide PA

Chief Strikes Deal to Provide Marcellus Gas for Electric Plants
August 29, 2013August 29, 2013

Chief Oil & Gas announced yesterday they have crafted a deal to supply some of the Marcellus Shale gas they produce in PA to IMG Midstream. You may think IMG is a pipeline company because of the word “midstream” in its name–but you would be wrong. IMG Midstream (formerly known as Iron Mountain Generation) develops, owns, and operates small-scale electric generation plants powered by natural gas. As part of the new deal, Chief will use pipelines from Access Midstream and PVR Midstream to get the gas from their wells to IMG’s new electric plants (to be built) in northeastern PA.

With that explanation to clear up who the players are, here’s the (somewhat confusing) press release announcing the deal…
Read More “Chief Strikes Deal to Provide Marcellus Gas for Electric Plants”
Allegheny County | Chesapeake Energy | CNX Resources | Energy Companies | Pennsylvania | Statewide PA

Marcellus Shale Coalition Gets New Chairman of the Board
August 29, 2013August 29, 2013

It appears that Chesapeake CEO Doug Lawler’s massive firings throughout the company (no doubt demanded by corporate raider and Chessy board member Carl Ichan) have not only affected Chesapeake itself, but also the Marcellus Shale Coalition (MSC)–the premier group representing the drilling industry in Pennsylvania and the entire Marcellus region.

The chairman of the board of directors at the MSC had been David Spigelmyer, VP of government relations for Chesapeake. Spigelmyer is now gone from Chesapeake and gone from the board of the MSC. In his place, the board has appointed the current vice chairman, Randy Albert, COO of CNX Gas, to be chairman until Spigelmyer’s term was due to end in November…
Read More “Marcellus Shale Coalition Gets New Chairman of the Board”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Announces “Open Season” for Potential PA Ethane Cracker
August 28, 2013August 28, 2013

Time for Shell to get serious about whether or not they plan to build a $2 billion ethane cracker plant in Monaca, PA. Shell announced yesterday they will have something akin to a pipeline open season, a period of time when drillers can bid on capacity to send the plant (should it be built) their locally-produced ethane supplies. The bidding period will run from August 27 through October 4 and will give Shell a good idea of just how much ethane will be available for them to “crack” at the plant.

Shell reports they already have commitments from CONSOL Energy, Noble Energy, Seneca Resources and Hilcorp Energy should they decide to build the cracker. Shell is still about a year away from a final final final final decision (see our June 2012 story – Shell: Final Decision on Cracker Plant Still 18-24 Mo. Away). The next few months are likely to be crucial to that decision…
Read More “Shell Announces “Open Season” for Potential PA Ethane Cracker”
Energy Companies | Industrywide Issues | Litigation | New York | Norse Energy | Statewide NY

Norse Can’t Dump NY Leases at Auction, Creditors Get Ready to Sue
August 28, 2013August 30, 2013

Norse Energy, the little energy that ultimately couldn’t (drill, because of Andrew Cuomo), bet big on New York State. It was the wrong bet. Norse holds 130,000 acres of leases in New York and literally bet the company’s future on New York’s willingness to allow fracking. The company lost the bet when they went into bankruptcy last year and finally had to put the only assets they had left on the auction block–130K leased acres–earlier this year (see Bankrupt Norse Energy to Sell NY Leases – Who Will Want Them?). As we stated at the time, who would be willing to purchase the Norse leases with a) Cuomo still not decided on whether drilling can happen in NY, and b) the courts still not decided about whether towns can ban drilling. Our answer: no one will be willing.

Norse has confirmed our logical deduction. The company issued a short statement yesterday stating they received a few low-ball bids for the leases, but the bid amounts are not near enough to satisfy creditors left holding the bag. Those creditors are now looking at filing lawsuits against Norse and its management…
Read More “Norse Can’t Dump NY Leases at Auction, Creditors Get Ready to Sue”
Allegheny County | CONSOL Energy | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport
August 28, 2013August 28, 2013

CONSOL Energy and Pittsburgh Airport officials held a joint press conference yesterday to share more of the details for CONSOL’s plan to drill on airport-owned property. You may recall the airport authority signed a deal with CONSOL in February of this year, netting the airport a nifty check for $50 million as the signing bonus (see $50M Check in the Mail: Pittsburgh Airport Lease a Done Deal). However, the signing bonus is just an hors d’oeuvre. All done and told–after receiving royalties for years to come–the airport expects the project to bring in a staggering $1 billion or more.

The proposed drilling plan (see the map below) calls for 6 well pads, 47 Marcellus Shale wells on those pads (with the possibility of drilling Upper Devonian wells later on), three fresh water ponds (“impoundments”) and 17 miles of gathering pipelines. CONSOL said that seismic testing in and around the airport property will begin in late October of this year, however, the first test wells will not be drilled until third quarter of 2014…
Read More “CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport”
Coterra Energy (Cabot O&G) | Education | Energy Companies | Industrywide Issues | Luzerne County | Pennsylvania

Cabot to Teach Hazelton, PA 9th Graders How to Frack
August 28, 2013August 28, 2013

Ninth-grade students at a new magnet school opening this fall in the Hazelton, PA area will be taught a series of lessons on the technology, economics and environmental issues related to fracking and shale gas drilling. The plan calls for the school’s teachers to lead four lessons in the series, an “environmentalist” (i.e. anti-driller) will teach one lesson, and someone from Cabot Oil & Gas, the northeast PA driller funding the program, will teach two of the lessons. There’s sure to be stiff opposition to Cabot’s involvement from the anti-drillers. “Fair” to them would be Cabot pays for the whole thing but anti-drillers are the only voices heard in the classroom. Not this time!

MDN finds it amusing the program will feature a mock town hall meeting complete with squabbling neighbors and people falsely claiming their water wells have been contaminated. We need to learn ’em young, ya know…
Read More “Cabot to Teach Hazelton, PA 9th Graders How to Frack”
Anadarko | Blue Ridge Mtn Res/Magnum Hunter | Chesapeake Energy | CONSOL Energy | Energy Companies | EV Energy Partners | Gulfport Energy | Halcon Resources | Hess | Ohio | PDC Energy | Rex Energy | Statewide OH | Utica Shale

Who’s Who in OH Utica Shale Drilling for 2013
August 27, 2013August 27, 2013

Investor’s website Market Realist ran a 7-part series on the Utica Shale yesterday–really good stuff. As part of that series they list the biggest drillers/leaseholders in the Ohio Utica Shale. It’s a very useful rundown and update on the latest positions held by the major players of the Utica. We’ve pulled and condensed from their article to give you the latest rundown on who’s who in the Ohio Utica Shale…
Read More “Who’s Who in OH Utica Shale Drilling for 2013”
Braxton County | Chesapeake Energy | Earthquakes | Energy Companies | Industrywide Issues | West Virginia

New Case of Earthquakes Related to an Injection Well in WV?
August 27, 2013August 27, 2013

One of the gross inaccuracies MDN has tried to address over the past several years is the claim that “fracking causes earthquakes.” It does not. At least not measurable earthquakes people can feel at the surface. No less a source than the National Academies of Science released a study last year to “finally” put that particular myth to rest (see NRC Study: Fracking Does Not Cause Earthquakes). Unfortunately the earthquake myth is just too good a PR opportunity to pass up, so anti-drillers haul it back out about every three months for a new round of exposure.

The earthquake issue is confusing for many people because there is a loose connection between earthquakes and fracking: injection wells. Although most fracking wastewater is now recycled to be used again for more drilling, some of it is disposed of via deep injection wells. If an injection well happens to be located near a geologic fault, the pressure from the injected fluid has the potential to trigger an earthquake. It happened in Youngstown, OH in late 2011/early 2012 (see ODNR Finds Youngstown Injection Well Caused Earthquakes). According to a recent report from WV Public Broadcasting, it may now be happening again near a Chesapeake-owned injection well in Braxton County, WV…
Read More “New Case of Earthquakes Related to an Injection Well in WV?”
Chevron | Energy Companies | Fayette County | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Chevron Wins Right to Build Freshwater Pond for Fracking in PA
August 27, 2013August 27, 2013

Last week the Pennsylvania Superior Court upheld a lower court ruling in favor of Marcellus Shale driller Chevron, declaring that Chevron has the right to construct a pond (“impoundment”) to hold fresh water used for fracking. The landowners in question (Mr. & Mrs. Humberston) did not want the pond constructed on 11 acres of their land but since the lease they signed did not specifically limit it, and since having lots of fresh water to frack with is a requirement for drilling (a reasonable expectation), the court ruled Chevron was within its rights to construct the pond…
Read More “Chevron Wins Right to Build Freshwater Pond for Fracking in PA”
Chevron | Energy Companies

Chevron’s Marcellus/Utica Unit Gets New President
August 26, 2013August 26, 2013

Breaking news from the Pittsburgh Business Times: Chevron’s Applachian (Marcellus/Utica) division has a new leader–Nigel Hearne…
Read More “Chevron’s Marcellus/Utica Unit Gets New President”
Crime | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

When Landmen Go Bad: Butler, PA Landman Arrested for Fraud
August 23, 2013August 23, 2013

A landman for Penn-Star Energy of Butler, PA, working to secure leases for Range Resources, is accused of a huge scam.

Apparently he used fake companies and forged signatures to steal away mineral rights from some landowners in Washington County, PA–worth more than $1 million…
Read More “When Landmen Go Bad: Butler, PA Landman Arrested for Fraud”
Coterra Energy (Cabot O&G) | Education | Energy Companies | Industrywide Issues | Lackawanna County | Pennsylvania

Lackawanna College NatGas Program to Get Boost from Obama Visit
August 22, 2013August 22, 2013

MDN attended and reported on the grand opening of a new CNG fueling station in Susquehanna County, PA last week (see Cabot Launches CNG Fueling Station in NE PA). One of the presenters at that event was Mark Volk, president of Lackawanna College. Dr. Volk was there to sing the praises of Cabot Oil & Gas and their key support for Lackawanna’s new-but-rapidly-growing Petroleum & Natural Gas Technology program. Cabot has not only contributed money but also equipment and expertise to the program, one of only four or five programs like it in the country.

Lackawanna College–a 1,600-student, private 2-year school near Scranton, PA–is about to emerge on the national stage in a big way, and by extension, Cabot as well. President Obama will visit the school tomorrow (Friday, August 23) and deliver a speech “to the nation and world” from Lackawanna, no doubt touting the role of Lackawanna in preparing students through programs like the Petroleum & Natural Gas Technology program. In honor of President Obama’s visit and to celebrate Obama’s recognition of the importance of an educated workforce for the northeast and particularly for the vitally important oil and gas industry, Cabot’s own George Stark has penned the following exclusive “guest post” for MDN readers…
Read More “Lackawanna College NatGas Program to Get Boost from Obama Visit”
Energy Companies | Energy Services | Ethane | Industrywide Issues | MarkWest Energy | Ohio | Processing Plants | Shell | Statewide OH

OH Still in the Running for an Ethane Cracker? Maybe
August 22, 2013August 22, 2013

Ohio’s dream to be the future host of an ethane cracker plant is still very much alive, according to U.S. Sen. Rob Portman from Ohio. Portman, along with Greg Sullivan, area manager for MarkWest Energy, spoke at the Ohio Mid-Eastern Governments Association meeting yesterday. According to Sullivan, a source to ship the ethane produced by their plant to when it separates the ethane from the natural gas liquid stream is “our big challenge.” MarkWest’s only current option is to ship it to Canada via the Mariner West Sunoco pipeline (see Big News: Marcellus Ethane Now Exporting to Canada Cracker Plant). Starting next year and the year after, two more pipelines will come online to ship it to the Gulf Coast (the ATEX Express and the Bluegrass).

According to MarkWest, there is a “desperate need for a local ethane cracker.” Sen. Portman is hoping Ohio can supply that need, especially since Shell continues to “evaluate” its project to build a cracker plant in PA with no firm commitment or timeline to build it…
Read More “OH Still in the Running for an Ethane Cracker? Maybe”
Carroll County | Energy Companies | Lease & Royalty Payments | Ohio | Sierra Buckeye | Utica Shale

Carroll County, OH Says Sierra Buckeye in Default on Utica Lease
August 22, 2013August 28, 2013

In May 2012 Houston-based driller Sierra Buckeye signed a deal with the Muskingum Watershed Conservancy District (in Ohio) to lease 185 acres of District-controlled land for $4,500 per acre plus 20% royalties on all gas produced–really good terms. In October 2012 Sierra Buckeye signed a deal with Carroll County, OH to lease 481 acres of county-owned land for the same terms, receiving a check for over $2 million as the signing bonus. However, built into the Carroll County lease deal are penalties if Sierra Buckeye does not begin drilling by certain deadlines.

The initial deadline came and went and the county extended it. The second deadline is now past and Sierra Buckeye is asking for a third deadline (November). The county has had enough and has told Sierra Buckeye the lease contract is now in default…
Read More “Carroll County, OH Says Sierra Buckeye in Default on Utica Lease”
Chesapeake Energy | Energy Companies

Corporate Raider Carl Ichan Ups Stake in Chesapeake – Again
August 21, 2013August 20, 2013

Corporate raider Carl Icahn–a man who buys up stock in companies so he can lay people off and resell his stock at a profit–has increased his stake in Chesapeake Energy by a full percentage point–to 9.98%. Man we’d hate to have him lurking on our board. It’s likely no coincidence that Chesapeake has just laid off a number of its public relations staff in Ohio and Pennsylvania. Thanks Carl!…
Read More “Corporate Raider Carl Ichan Ups Stake in Chesapeake – Again”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues

Prometheus to Supply Antero Resources with LNG for Drilling Rigs
August 20, 2013August 20, 2013

In April MDN told you that Antero Resources was the second Marcellus/Utica Shale driller that would convert its drilling rigs to run on 100% liquefied natural gas, or LNG (see Antero Res 2nd Marcellus Driller to Use 100% NatGas Rig Engines). Seems Antero now has a supplier that will deliver the LNG and the necessary equipment to Antero’s drill sites to power those rigs. That supplier is Prometheus Energy Group…
Read More “Prometheus to Supply Antero Resources with LNG for Drilling Rigs”