Energy Companies

Chesapeake Energy | Energy Companies | Housing | Industrywide Issues | Ohio County | Regulation | Statewide WV | West Virginia

Chesapeake Energy Receives First ‘Labor Camp’ Permits in WV
November 26, 2012November 26, 2012

Some people call them “man camps.” Others call them “labor camps.” Whatever you call them, small groups of people (usually men) working on location and living in trailers—like what happens at drill pad sites—are now officially called labor camps in West Virginia. If a site in WV has 10 or more people living and working on location, you need a special permit according to a new state law.

Chesapeake Energy has become the first driller in WV (Ohio County) to apply for and receive a labor camp permit:

Read More “Chesapeake Energy Receives First ‘Labor Camp’ Permits in WV”
Chesapeake Energy | Energy Companies | Industrywide Issues | NG Vehicles

Waste Management, Others Converting Fleets to Run on NatGas
November 26, 2012November 26, 2012

When Waste Management, the country’s biggest trash hauler, commits to converting 80% of its truck fleet with trucks powered by natural gas—that’s a big deal. Other fleet managers are taking notice and doing the same. Why? The price of natural gas is half the cost of gasoline and diesel:

Read More “Waste Management, Others Converting Fleets to Run on NatGas”
Columbia Pipeline Group | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Lease & Royalty Payments | NiSource | Ohio

Some Brinker Field (OH) Leases Revised, Others in Lawsuit
November 23, 2012November 23, 2012

Hilcorp Energy was hired by Columbia Gas’ parent company NiSouce to drill Utica Shale wells in the Brinker Storage Field, a 35,000 acre area in Columbiana County, Ohio that Columbia has used to store natural gas going back more than 50 years. The original leases with landowners in the Brinker, leases passed down to new landowners over the decades, mean that landowners get zippo from any drilling—no lease payments and no royalties (see this MDN story for background).

Since the MDN story that first appeared in September, about 100 landowners have signed on to a lawsuit against Columbia and Hilcorp over the lease issue. But also since September, Columbia and Hilcorp have cut new leases with landowners not party to the lawsuit. We get the details of the lease terms from a story that talks about Hilcorp setting up a new office in Columbiana to work on land deals:

Read More “Some Brinker Field (OH) Leases Revised, Others in Lawsuit”
CNX Resources | Columbiana County | CONSOL Energy | Energy Companies | Ohio

CONSOL/CNX Expands Presence in Ohio Utica Shale
November 23, 2012November 23, 2012

CONSOL Energy’s CNX Gas subsidiary is expanding its presence at the Columbiana County Port Authority’s industrial park in Leetonia, Ohio. It’s an indicator of CNX/CONSOL’s commitment to the Ohio Utica Shale.

Although headline stories usually talk about the 1.3 million acres owned by Chesapeake in the Utica Shale, you don’t often hear about the large and growing stake owned by CNX:

Read More “CONSOL/CNX Expands Presence in Ohio Utica Shale”
Chesapeake Energy | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

EIA Report: Rig Count in Utica Shale Doubles in One Year
November 21, 2012November 21, 2012

Yesterday the U.S. Energy Information Administration (EIA) provided a detailed update on shale drilling activity in the Utica Shale. They found that the number of drilling rigs in the Utica has doubled from October of last year to October of this year. Also of keen interest: 86% of the active rigs in the Utica (now) are targeting shale oil. Last October the number of 15% of active rigs—which shows a remarkable shift in the Utica. Although the report says “shale oil,” MDN takes that to mean “wet gas,” or shale oil and natural gas liquids. The report finds that Chesapeake Energy continues to be the Big Kahuna in the Utica Shale with 39% of all new well starts in Ohio year-to-date.

Here’s the full EIA Utica Shale update posted yesterday (along with some great charts):

Read More “EIA Report: Rig Count in Utica Shale Doubles in One Year”
Carroll County | Chesapeake Energy | Columbiana County | Economic Impact | Energy Companies | Harrison County | Industrywide Issues | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Chesapeake Says 3 OH Counties are “Core of the Core” in Utica
November 21, 2012November 21, 2012

On the third quarter earnings call with analysts earlier this month, Chesapeake Energy officials were asked about the Utica Shale and their thoughts, now more than a year in, of how the Utica stacks up against the Eagle Ford, and how Chesapeake’s “core of the core” strategy is working in the Utica. Chesapeake CEO Aubrey McClendon answered the question this way, identifying the three counties in Ohio that are “the core of the core” for the company:

Read More “Chesapeake Says 3 OH Counties are “Core of the Core” in Utica”
Chesapeake Energy | Energy Companies

Carl Ichan Ups Stake in Chesapeake Energy
November 21, 2012November 21, 2012

Corporate raider Carl Icahn (euphemistically renamed an “activist investor” by mainstream media who now like his targets) has increased his holdings in Chesapeake Energy. He remains the number two shareholder in the company.

As reported by the Pittsburgh Business Times (quoting CNBC):

Read More “Carl Ichan Ups Stake in Chesapeake Energy”
Cambria County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Seneca Resources

Seneca Resources Gives Johnstown TV Station an Eye & Earful
November 21, 2012November 21, 2012

Recently Seneca Resources, a company that will turn 100 years old in March, gave Johnstown, PA WJAC-TV News a tour of what happens at a drill site. During the tour, WJAC got the real story of what goes on “behind the scenes” at a drilling company. They also got the real story about fracking. Refreshingly, WJAC reported it accurately!

Here’s what Seneca told WJAC:

Read More “Seneca Resources Gives Johnstown TV Station an Eye & Earful”
Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Inflection Energy | Litigation | New York | Statewide NY | Tioga County (NY)

More on the NY Force Majeure Ruling Against Chesapeake
November 20, 2012November 20, 2012

MDN headlined a story yesterday about last week’s decision by a federal judge that went in favor of landowners and against Chesapeake Energy and Inflection Energy. The case found that Chesapeake and Inflection could not use the legal clause in their signed leases called “force majeure” to extend previously signed leases beyond the original 10-year term (see this MDN story for background).

One of the lead attorneys who brought the case on behalf of New York landowners is Scott Kurkoski, from the Vestal, NY law firm Levene, Gouldin & Thompson, LLP. Scott sent along a statement (below) along with a copy of the judge’s decision (also below).

Read More “More on the NY Force Majeure Ruling Against Chesapeake”
Broome County | Chesapeake Energy | Energy Companies | Industrywide Issues | Inflection Energy | Lease & Royalty Payments | Litigation | New York | Statewide NY | Tioga County (NY)

Judge Rules Against Chesapeake, Inflection in NY Lease Case
November 19, 2012November 19, 2012

An important court case has ruled in favor of landowners against energy companies in New York State. Last Thursday, U.S. District Court Judge David Hurd ruled against Chesapeake Energy and Inflection Energy (and in favor of landowners) in a case where the companies had tried to extend leases beyond the original term by invoking “force majeure,” a legal phrase that means the terms of the lease could not be carried out due to extenuating circumstances.

Chesapeake and Inflection had argued that New York State’s moratorium on hydraulic fracturing of shale meant they could not drill on New York land for which they hold leases. But as with many things legal, the story is not so simple…

Read More “Judge Rules Against Chesapeake, Inflection in NY Lease Case”
Energy Companies | Norse Energy

Norse Energy Will Run Out of Money in December
November 19, 2012November 19, 2012

Norse Energy issued a press release last week to update stockholders and investors on where the company stands with its finances. Bottom line? Unless something changes, the company will run out of money in December. They have $1.5 million in the bank and that will get them through to December. If the people who have loaned them money (floated them bonds) don’t rework the financing, or if Norse can’t come up with more money from somewhere—like now—let’s just say it’s not good news.

Norse is still holding out hope that New York, where they have some 130,000 acres under lease, will finally allow fracking to commence. That gamble (so far) has not paid off. Here’s the Norse statement issued yesterday:

Read More “Norse Energy Will Run Out of Money in December”
Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Noble County | Ohio

OH Muskingum Watershed District Seeks Lease with Antero
November 19, 2012November 19, 2012

In what is sure to tick off anti-drillers, the Ohio-based Muskingum Watershed Conservancy District (MWCD) announced Friday it will seek a lease with Antero Resources to allow shale gas drilling under 7,600 acres of district-owned land at Seneca Lake. The Muskingum River Watershed covers more than 8,000 square miles and drains into the Muskingum River. It is the largest wholly contained watershed in the state of Ohio covering about 20 percent of the state. More recently, the MWCD has been in hot water with anti-drillers over selling what amounts to a thimble-full of their vast water supplies to drillers in Ohio that use it for fracking Utica Shale wells (see this MDN story).

So, just how much will the MWCD get for leasing the Seneca Lake land?

Read More “OH Muskingum Watershed District Seeks Lease with Antero”
Allegheny County | Beaver County | Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Public Spat Between Rep. Jesse White & Range Resources Continues
November 19, 2012November 19, 2012

An article in the Pittsburgh Tribune-Review takes a pretty fair look at the troubles faced by PA State Rep. Jesse White and his attacks on Range Resources. Last week Range released some fairly damning emails in response to White’s attacks that seem to indicate White, who had previously courted Range, turned on them when they didn’t provide enough campaign money and support to his liking. The turning point seemed to be when Range turned down White’s request (which he now says was a joke) for a ride to the Super Bowl on a Range jet (see this MDN story).

Saturday’s Tribune-Review article quotes some in his own (Democrat) party expressing their doubts about White’s actions and words:

Read More “Public Spat Between Rep. Jesse White & Range Resources Continues”
Energy Companies | Exxon Mobil | Industrywide Issues | Taxation

Exxon Mobil Foolishly Backs Obama Carbon Tax Idea
November 16, 2012November 16, 2012

Exxon Mobil is a major disappointment. Since 2009 they’ve supported a so-called “carbon tax” over what they consider a less-desirable alternative—legislation capping carbon dioxide emissions. Carbon dioxide, in case you didn’t know, is the substance you breathe out with every breath you take. Plants breathe it in. Plants, on the other hand, expire oxygen that we animals breathe in—something called the circle of life. Obama and green wackos want to tax carbon dioxide emissions in the misbegotten belief it’s “polluting the planet” and that by taxing it, you will cause its use to go down. (Maybe a tax on breathing will be next?) Boggles the mind.

What boggles the mind even more is Exxon’s support for the idea. A carbon tax is nothing more than a huge, new tax increase that gives greedy politicians more money to play with, reduces manufacturing activity (and jobs at those manufacturers), and overall is about the worst idea anyone has had in oh, about a century.

Read More “Exxon Mobil Foolishly Backs Obama Carbon Tax Idea”
Chesapeake Energy | Energy Companies | EnerVest | Gulfport Energy | Lease & Royalty Payments | Meetings | Utica Shale

EnerVest CEO Contradicts McClendon: Utica Oil Will be Big
November 15, 2012November 15, 2012

At the Developing Unconventional Gas (DUG) East Conference in Pittsburgh yesterday, EnerVest CEO John Walker contradicted the view of Chesapeake CEO Aubrey McClendon. McClendon said the Ohio Utica Shale will not produce much oil—at least for Chesapeake (see this MDN story). Walker said he believes the Utica will produce a lot of oil—that is, once they figure out the “right completion method.”

Gulfport’s CEO Jim Palm also spoke glowingly about the Utica at the conference. Gulfport, you may recall, has the highest producing Utica well so far (see this MDN story). The conference is organized by Hart Energy, who provided information stating lease payments in the Ohio Utica Shale have reached as high as $8,000 per acre.

Read More “EnerVest CEO Contradicts McClendon: Utica Oil Will be Big”
BP | Commodity Price | Energy Companies | Ethane | Industrywide Issues | NGLs

Industry Expert Says NGL Prices are Headed Down
November 15, 2012November 15, 2012

Dawn Constantin, head of partnerships and analytics at BP plc, spoke at the LDC Gas Forum in Toronto earlier this week about what the future holds for the natural gas liquids (NGLs) market. Her analysis? Drillers who thought NGLs (wet gas) were a safe harbor against the low price of methane (dry gas) may not find it so safe after all. Why? Simple economics of supply and demand. Demand for NGLs is not keeping up with the flood of supply coming from places like the Marcellus and Utica Shale.

Constantin said there now exists downward pressure on the price of NGLs, just like there is for dry gas:

Read More “Industry Expert Says NGL Prices are Headed Down”