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Shell Cracker Blast: 6 Minutes from Wrong Click to $95M Explosion
The U.S. Chemical Safety and Hazard Investigation Board (CSB) last Wednesday, Sept. 16, released its final report on the June 4, 2025, explosion and fire at Shell Polymers Monaca, the ethane cracker plant in Beaver County, PA (see PA DEP Says Shell Ethane Plant Fire May Have Released Carcinogens). The finding, boiled down to one sentence: an engineer who had never done the job before opened the wrong valve on a computer screen where three nearly identical valves were stacked on top of each other, and six minutes later Furnace 5 blew apart. Damage: $95 million. Injuries: none. OSHA’s fine: $26,480. Read More “Shell Cracker Blast: 6 Minutes from Wrong Click to $95M Explosion”
The Marcellus/Utica region received 16 new drilling permits last week, September 7 – 13, down from the 28 permits issued two weeks ago. Pennsylvania issued 13 of the new permits. Ohio issued 3 new permits. And West Virginia issued no new permits. The drillers who received new permits last week were: CNX Resources, EOG Resources, EQT, Infinity Natural Resources, and Range Resources. 
It’s a sellout, and we now have the full scorecard. On Tuesday, the Bureau of Land Management (BLM) auctioned drilling rights to 40 parcels of federal minerals under Ohio’s Wayne National Forest (WNF), and every parcel found a buyer. The 2,776.84 acres in Monroe and Washington counties brought $11,097,693 in total receipts. Five companies won leases, and one of them, Apex Energy Operating III LLC, walked off with nearly two-thirds of the acreage. We have BLM’s full parcel-by-parcel results, embedded below. It’s the first federal lease sale in the WNF since March 2017. 
Yesterday it was a Reuters rumor. This morning it’s official. National Fuel Gas Company (NFG) says its board will decide by October 15 whether to split the 124-year-old company in two. One half would be a brand-new, publicly traded Marcellus/Utica driller made up of Seneca Resources and the NFG Midstream gathering business. The other half, which keeps the National Fuel name, would be a 100% regulated utility and pipeline company. If the board says yes, NFG shareholders would get shares in the new driller, tax-free. 
CNX Resources isn’t going anywhere in north-central West Virginia. At a community event at the Blacksville Volunteer Fire Department social hall, CNX Chief Operating Officer Navneet Behl laid out a drilling calendar for the company’s Wadestown operation in western Monongalia County through 2029. CNX has 24 wells already producing on three pads there, is working on six more wells on those same pads, and is building a brand-new pad slated for 13 more wells. The company says it expects to pay about $525 million in royalties on those 19 new wells. That’s the good news. The not-so-good news came from the same guy: Behl admitted CNX can only drill so much in Appalachia because there still aren’t enough pipelines to haul the gas away. 
It took three years, two conditional use applications, one appellate court loss, a subdivision, a three-hour hearing, and a deadline extension — but EQT finally got its vote. On Monday night (Sept. 14), Elizabeth Township’s (Allegheny County, PA) Board of Commissioners voted unanimously to approve two conditional use permits for EQT’s six-well Heracles project: one for the well pad, and one for the interconnect pad (the spot where gas from the wells hands off to a pipeline). The pad sits less than a half-mile from Elizabeth Forward High School, so the approvals come with a long list of strings attached, including a 10-year “emergency preparedness fund” EQT must pay into. Big Green group Protect Elizabeth Township (PET) says it will keep fighting in court. In a surprise twist, the commission president revealed that someone has approached the township about building a data center. 
The fall “turn down the valves” season for Marcellus/Utica gas has arrived, and it showed up about a week early. Last Friday (Sept. 11), the spot price at Texas Eastern M-2 (aka Tetco M-2), the key pricing point for gas produced in southwestern Pennsylvania, West Virginia, and Ohio, averaged $1.435 per MMBtu (million British thermal units, roughly 1,000 cubic feet of gas). That’s 6.5 cents below the $1.50 mark that EQT, the region’s biggest driller, has flagged as its trigger for curtailing (temporarily cutting back) production. So, are shut-ins coming? History says probably, at least for a while. 
National Fuel Gas Company (NYSE: NFG) released its 2025 Corporate Responsibility Report last Wednesday, and the most newsworthy part never made the press release. Buried on page 22 — and repeated on page 25 — is NFG’s announcement that it has discontinued its consolidated absolute greenhouse gas emissions reduction target. The company is keeping its segment-level methane intensity targets and will keep publishing absolute emissions numbers. But the corporate-wide “cut total tons” pledge is gone. 
Round and round she goes. Yesterday Shell Energy North America (SENA) announced it is doing two deals at once: selling the 609-megawatt (MW) Rhode Island State Energy Center (RISEC) near Providence to Constellation Energy for $715 million, and buying the 169-MW Hunlock Creek Energy Center in Luzerne County, Pennsylvania, from Castleton Commodities International (CCI). Shell has owned the Rhode Island plant for all of about 20 months. CCI has owned Hunlock Creek for two years. Both deals are expected to close in the first quarter of 2027, pending the usual regulatory blessings. 
Accounting giant Ernst & Young dropped its annual reserves benchmarking study yesterday, and while the press release leads with oil, the real story for our part of the country is buried in the tables: EQT is now the largest holder of proved natural gas reserves in the United States, and Appalachian-focused producers control roughly a third of all the gas reserves booked by America’s 30 biggest publicly traded drillers. 
EOG Resources, the biggest acreage holder in the Ohio Utica, sent Chief Operating Officer Jeff Leitzell to the Barclays 40th Annual Energy-Power Conference yesterday (Sept. 9), and he spent a good chunk of his stage time explaining exactly how EOG thinks about our play. We’ve heard some of it before. But Leitzell went deeper on Utica geology than the company usually does on an earnings call — including a north-versus-south distinction that shapes how tightly EOG spaces its wells — and he dropped a fresh well-results number: three inherited Encino wells with 3.5-mile laterals that each came online at more than 35 million cubic feet per day (MMcf/d). He also confirmed that Ohio’s first in-basin frack sand mine is still on track for a year-end startup, and that the savings from it are not yet baked into EOG’s cost numbers. 
For four years, the province of Québec has had one answer for the drillers whose mineral rights it seized: see you in court. Last week that changed — a little. Questerre Energy announced it has signed a mediation protocol with Québec’s Attorney General and the province’s Ministry of the Economy, Innovation and Energy, agreeing to sit down at a table and talk. Longtime MDN readers know the backstory. Québec sits on top of a big slice of the Utica Shale — yes, the same Utica that runs under Ohio, West Virginia and Pennsylvania. 
Devon Energy’s Coterra unit is asking Pennsylvania regulators for permission to lay 18.4 miles of 20-inch freshwater pipeline across three Susquehanna County townships — which is a strange thing to spend money on if you’re about to sell the place. The Department of Environmental Protection (DEP) published the notice in the September 5 Pennsylvania Bulletin, opening a comment window that closes October 5. The project is the Brooks to Forwood Temporary Waterline, running through Springville, Lathrop, and Lenox townships. 
Shell Chemical Appalachia signed a consent order and agreement (COA) with the Pennsylvania Dept. of Environmental Protection (DEP) last Friday, Sept. 4, agreeing to hand over $15 million to settle three years’ worth of air, storage tank, and water violations at its Monaca (Beaver County) ethane cracker. Half of it — $7.5 million — is an actual civil penalty. The other half is a “contribution” to a brand-new community fund. If that arrangement sounds familiar, it should. It’s the same two-bucket structure the Shapiro administration used to squeeze nearly $10 million out of Shell back in May 2023.