Energy Companies

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”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pipelines | Ritchie County | Statewide WV | Tyler County | West Virginia

More on that Half Billion Dollar Antero Water Pipeline in WV
August 20, 2013August 20, 2013

We have a few more helpful details on Antero’s project to build an 80-mile water pipeline from the Ohio River to Tyler and Ritchie counties in West Virginia. The project has been approved and will cost Antero $525 million (that’s over half a billion). However, when complete, the new pipeline and other infrastructure Antero has and is building will reduce their cost to drill a well by $600,000. They plan to drill some 30% of their wells this year using water from this project, and 90% of the wells they drill in 2014.

More information about the project, which Antero has been tight-lipped about:
Read More “More on that Half Billion Dollar Antero Water Pipeline in WV”
Accidents | Antero Resources | Energy Companies | Harrison County | Industrywide Issues | West Virginia

Explosion at Antero Resources Drill Pad in Harrison County, WV
August 20, 2013August 20, 2013

Our sincere apologies: The explosion in Harrison County, WV is OLD news and was somehow recirculated. We pride ourselves on “getting it right” and not making these kinds of errors. This time we blew it. Again, apologies.
American Energy Partners | Chesapeake Energy | Energy Companies | Ohio | Statewide OH

He’s Baaaack! Aubrey McClendon is Back in OH Shale Country
August 19, 2013August 19, 2013

After being unceremoniously tossed out of the door at Chesapeake Energy (the company he founded) by corporate raider Carl Icahn, Aubrey McClendon is, according to the Columbus Dispatch and Upstream magazine, back and active in the Utica Shale with his new company American Energy Partners.

There are four VERY interesting, juicy tidbits in the story about Aubrey’s return to the Utica…
Read More “He’s Baaaack! Aubrey McClendon is Back in OH Shale Country”
Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Statewide PA

PA Director of Game Commission Double-Dipping with Gas Leases?
August 19, 2013August 19, 2013

An extensive investigative article about the director for the Pennsylvania Game Commission, William A. Capouillez, appears in yesterday’s Philadelphia Inquirer. The article spotlights a potential conflict of interest between Capouillez’s day job and his moonlighting side job as an agent for property owners who lease their land for oil and gas development. The issue? He signs private deals with the same companies that often work with his state agency. For one driller–Range Resources–it’s become a serious (legal) issue.
Read More “PA Director of Game Commission Double-Dipping with Gas Leases?”
Belmont County | Education | Energy Companies | Hess | Industrywide Issues | Jobs | Ohio

Hess Sets Up Scholarship Program at Belmont College
August 19, 2013August 19, 2013

Utica driller Hess Corporation and Belmont College (St. Clairsville, OH) announced last Friday that Hess has established a scholarship program that will make “multiple awards” of scholarships of up to $3,000 per student per year at Belmont. Students may be enrolled in either full- or part-time programs working on either an associates degree or a certificate.

The aim of the program is to help train non-traditional students–those out of work and downsized from a previous job. The awards are not just for those seeking energy-related jobs either…
Read More “Hess Sets Up Scholarship Program at Belmont College”
Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | NG Vehicles | Pennsylvania | Susquehanna County

Cabot Launches CNG Fueling Station in NE PA
August 16, 2013August 16, 2013

MDN editor Jim Willis (that’s me) had the pleasure of a late summer/early autumn drive from Binghamton to Dimock, PA yesterday. I attended the official opening of Cabot’s compressed natural gas (CNG) facility near Dimock. On hand for the ceremony were not only officials from Cabot, but also local politicians, a rep from the state DEP, local colleges and others.

George Stark, Cabot’s chief spokesman and director of external affairs, kicked off the event by calling the Marcellus Shale in Susquehanna County (the only place in PA they drill), a “generational” shale play. He said “production here is just prolific” and that what Cabot and others are doing in Susquehanna County is “changing the world.” His comments may seem like hyperbole, but indeed they are not…
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Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | NiSource | Ohio | Pipelines | Processing Plants | Statewide OH

More Progress for Hickory Bend Pipeline/Processing Plant in OH
August 16, 2013August 16, 2013

The Pennant Midstream “Hickory Bend” pipeline continues to make good progress. Pennant is a joint venture between NiSource and Hilcorp Energy, established to build a $300 million wet gas pipeline and processing plant in eastern Ohio (see the original announcement from July 2012: NiSource, Hilcorp Energy Joint Venture in Utica Shale).

Although the project has faced its challenges and minor delays, it has made excellent and steady progress. The cryogenic processing plant in Springfield Township is now being reported as “completed” (the first time we’ve heard that), and pipeline boring crews are working this week in Columbiana County. An update:
Read More “More Progress for Hickory Bend Pipeline/Processing Plant in OH”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide PA

Chesapeake Short-Changes PA Landowner on Royalty Checks
August 14, 2013August 14, 2013

MDN has brought you a couple of stories in recent weeks about landowners suing Chesapeake Energy over royalty checks, claiming Chesapeake is playing fast and loose with post-production expenses (see Bradford County, PA Landowners Sue Chesapeake over Royalties). A new Chesapeake royalty story (below) appears on the ProPublica website. It opens with a poignant tale of yet another landowner who was apparently screwed by Chesapeake with respect to royalties. It’s maddening.

However, we have to put the story in proper perspective. ProPublica is anti-drilling through and through. They have an agenda and that agenda is to make all drillers and anyone/anything connected to fossil fuels look bad, so as you read the story below, keep that in mind. Still, if even 10% of what is reported below is true, it’s disturbing. More than ever, it’s vital that landowners have a detailed, well-spelled-out lease that’s been reviewed and tweaked by a lawyer who knows oil and gas contracts inside and out. It’s also important to monitor every royalty statement…
Read More “Chesapeake Short-Changes PA Landowner on Royalty Checks”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County

Range Resources Argues with Mt Pleasant over Water Impoundment
August 14, 2013August 14, 2013

Range Resources seems to have a problem maintaining good relations with southwestern PA townships on the matter of water impoundments. In May, MDN told you about Cecil Township’s concerns over a 15 million-gallon water impoundment still actively used by Range even though the three gas wells at the impoundment site were drilled long ago (see Cecil, PA Supervisors Want Better Relations with Range, but…). Range had another tangle with a town board last night–this one in Mt. Pleasant Township. The same issue has once again appeared: a water impoundment is being used not for the wells drilled at the site, but for other wells being drilled in the region.

According to Cecil and now Mt. Pleasant officials, Range has the habit of expanding the use of water impoundments from their original intent. Range says the water impoundments are properly regulated by the state and not the towns. Who’s right?
Read More “Range Resources Argues with Mt Pleasant over Water Impoundment”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe
August 14, 2013August 14, 2013

According to a story in The Wall Street Journal, Antero Resources will spend half a billion dollars to construct an 80-mile pipeline in the Marcellus/Utica Shale region. But this rather expensive pipeline will not carry natural gas, gas liquids or even oil. Instead, it’s a pipeline that will deliver water from the Ohio River to some of Antero’s most active drilling locations scattered in West Virginia and Ohio–to be used for fracking.

For Antero with some 100K acres of leased land in the Marcellus, committing to half a billion dollars (the company grossed $265 million last year) is a huge roll of the dice…
Read More “Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Bombshell Disclosure in “Final” Document of Hallowich Court Case
August 13, 2013August 13, 2013

Two weeks ago, MDN told you the final document in the long, drawn-out affair known as “the Hallowich family” court case had been released (see Last Document Released in Hallowich v Range $750K Settlement). We were wrong.

Yesterday, the final final (pinky swear) last document was finally finally released. Until the next one comes along… Yesterday’s document was the confidential settlement agreement (embedded below). It contains a bombshell surprise…
Read More “Bombshell Disclosure in “Final” Document of Hallowich Court Case”
Chesapeake Energy | Energy Companies

Chesapeake Energy: What Goes Around Comes Around
August 13, 2013August 13, 2013

MDN has chronicled the messy firing of Chesapeake Energy’s founder and “controversial” leader Aubrey McClendon. We also told you about three of his long-time “friends” who were paid $15.4 million to stick around after corporate raider Carl Icahn got his way and had Aubrey fired (see Chesapeake Pays $15.4M to Prevent Exodus of Top Talent). Two of the three well-bonused “friends” have now received their own pink slips from Chesapeake. Steve Dixon, who was COO and acting CEO after Aubrey left, and Martha Burger, head of HR at the company, have been sent packing by Chesapeake’s new CEO Doug Lawler. No word on whether they get the full payout bonus which was due to be granted over the span of three years–in 2016, 2017 and 2018.

One Aubrey “friend” remains at Chesapeake: CFO Dom Dell’Osso…
Read More “Chesapeake Energy: What Goes Around Comes Around”