Energy Companies

Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | NiSource | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA

NiSource, Hilcorp Energy Joint Venture in Utica Shale
July 9, 2012December 19, 2012

NiSource Inc. announced today they are entering a joint venture with Hilcorp Energy and combining their Utica Shale acreage together with Hilcorp doing the drilling. They’re also establishing a midstream joint venture called Pennant Midstream to construct an initial 50 miles of wet gas gathering pipelines in northeast Ohio and western Pennsylvania. And the new midstream company will build a natural gas processing complex in Ohio.

No word on exactly how much acreage the combined two have together in the Utica Shale, but the jv plus the new pipelines and processing plant is a major development for both eastern OH and western PA.

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Shell | Steuben County

Sierra Club Sues to Stop Water Sales in Steuben County, NY
July 9, 2012December 19, 2012

In March 2012, the village board in Painted Post (Steuben County), NY voted to sell water to Shell for use in fracking operations across the border in Pennsylvania. The Susquehanna River Basin Commission (SRBC) gave its blessing to Painted Post to sell up to 1 million gallons of water day. But the decision doesn’t sit well with anti-drillers.

According to NGI’s Shale Daily, the Sierra Club and several area organizations sued the village board in late June to stop the sale from taking place.

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Air Quality | Energy Companies | EQT Corp | Industrywide Issues

EQT Converts Marcellus Drilling Rigs to Run on LNG
July 6, 2012December 19, 2012

Drilling rigs take a lot of horsepower to run, and the engines that run them are big and use a lot of fuel. That fuel is typically diesel, and the emissions may (or may not) cumulatively contribute to air pollution if there are enough drilling rigs in a particular region. At least that’s the contention of the federal EPA.

EQT, in a public relations coup, is the first to start converting its Marcellus Shale drilling rigs from running on diesel to running on liquefied natural gas (LNG). LNG has a couple of advantages: it costs about 40% less than diesel, and it pollutes less when burned. EQT’s first conversion is a rig operating in northern West Virginia.

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Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Mahoning County | Ohio

Salem, OH to Sign Lease Deal with Chesapeake for $7K+20%
July 6, 2012December 19, 2012

The City of Salem, Ohio, which straddles both Columbiana and Mahoning counties, is due to sign a three-year oil and gas lease with Chesapeake Energy today for 381 acres of land owned by the city.

The deal calls for an initial $3,500 per acre signing bonus and 20% royalties, with an additional $3,500 per acre for a three-year extension. All told, it will be $7,000 per acre for a six-year lease—one of the highest amounts MDN has seen (if the three-year extension is exercised).

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Accidents | Bradford County | Chief Oil & Gas | Energy Companies | Industrywide Issues | Pennsylvania

Hydrochloric Acid Spill at Drilling Site in Bradford, PA
July 6, 2012December 19, 2012

It wasn’t a happy July 4th at the Yoder Unit 1H Marcellus well in Leroy Township (Bradford County), PA. The well, in the process of being drilled by Chief Oil and Gas, experienced a leak of 4,700 gallons of hydrochloric acid from a faulty valve. Most of the acid stayed on the drill pad, but some of it ran off into a local “plunge pool” constructed by Chief and killed some minnows. Fortunately, the acid never reached nearby Towanda Creek and did not create a safety hazard for nearby landowners.

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Energy Companies | Norse Energy

Norse Sells Another Slice to Shareholder Megaron for $2M
July 5, 2012July 5, 2012

It looks like today’s “extraordinary shareholder’s meeting” for Marcellus & Utica Shale driller Norse Energy, held at corporate HQ in Norway, has yielded the desired result. As MDN pointed out in our sneak preview of the shareholder presentation (see this MDN story), Norse was pitching existing shareholders on the concept of giving Norse more money to drill because “New York is almost ready to allow drilling” and when that happens, Norse will need the cash to ramp up operations. (Plus, they need the cash to keep going until then.)

Norse just issued a press release that they’ve raised an additional $2 million from existing shareholder Megaron AS, who agreed to a convertible loan. It was a good deal (potentially) for Megaron—they’re getting 10% interest on the loan.

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Chesapeake Energy | Energy Companies | Harrison County | Industrywide Issues | Litigation | Ohio | Utica Shale

Chesapeake’s Best Utica Well (Buell 8H) in Legal Trouble
July 5, 2012July 5, 2012

From time to time MDN will tackle a complicated issue and try to, as briefly as possible, break it down for our readers to understand the essence of it. This is one of those issues. It involves property rights, contracts, deeds, a sympathetic landowner, and Chesapeake Energy’s single largest-producing Utica Shale well in Ohio—the Buell Well.

The Buell Well, designated Buell 8H by the Ohio Department of Natural Resources, is named after the landowner Kenneth Buell, a 73 year-old farmer. It’s located in Archer Township in Harrison County, OH. It was one of the first Utica Shale wells to be drilled in Ohio and previously yielded 1.5 billion cubic feet of natural gas in 198 days—2% of the total gas production for the entire state. It’s 300 times more productive than the average vertical well in Ohio, and it has also has produced in excess of 13,000 barrels of oil. By any measure it’s a star performer—the star performer in Ohio. And it’s now in danger of being shut down because of legal disputes over who owns the rights to drill it. That’s where the situation gets messy and complicated.

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Chesapeake Energy | Energy Companies

CJR Questions Reuters Sourcing of Emails Used in Hit Piece
July 5, 2012July 5, 2012

Less than two weeks ago, MDN asked the question, Did Reuters break the law with the latest Chesapeake story? (see this MDN story). We pointed out that the emails used by Reuters were private, and in order for Reuters to take possession of them, someone likely broke the law. None other than the prestigious Columbia Journalism Review is now essentially asking the same question about the source of those emails.

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Energy Companies | New York | Norse Energy | Statewide NY

Norse Energy Special Shareholder Appeal – Sneak Preview
July 3, 2012July 3, 2012

On July 5, Norse Energy Corp will hold what they call an “Extraordinary General Meeting” (EGM) for shareholders in Oslo, Norway. Norse Energy’s CEO Mark Dice will present to shareholders using the PowerPoint embedded below. MDN has included a rundown of what’s in the slides.

For better or worse, Norse has most of its investments in leases in New York State, and the now four-year long delay in adopting new drilling rules, called the SGEIS, has strained the company’s resources. They’ve refinanced debt, sold off assets, taken on investors and have done whatever they can to “hang in there” until drilling finally begins in New York. The slides in the presentation show just how key New York’s decision is to Norse’s future.

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BP | Carrizo Oil & Gas | CONSOL Energy | Energy Companies | Ohio | Trumbull County

Trumble County, OH Update: Drilling Won’t Start for 18 Months
July 3, 2012July 3, 2012

According to Terry Fleming, executive director for the Ohio Petroleum Council, Trumbull County is “at least” 18 months away from any active drilling for oil and gas.

Fleming’s update for Trumbull County:

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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter’s Marcellus Production Curtailed from Storm
July 3, 2012July 3, 2012

You may or may not have heard about the severe thunderstorms that moved through the mid-Atlantic region last Friday afternoon. It resulted in 1.3 million people in Washington, D.C., Maryland and northern Virginia losing power. Some of them still don’t have power and won’t until later this week.

But what you may not realize is that the same storm also had a noticeable effect on the Marcellus Shale industry. The storms didn’t just stop around D.C.—they kept on going—right into the heart of Marcellus country. And the power outage caused problems for at least one driller, Magnum Hunter, who issued a press release with an update on the status of their operations in the region.

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Devon Energy | Energy Companies | Ohio | Wayne County (OH)

Devon Energy Receives First Utica Permit for Wayne County, OH
July 2, 2012July 2, 2012

Devon Energy has just received the first permit to drill a Utica Shale well in Wayne County, Ohio. No timeline is set for when the drilling will begin, but Devon hopes the well will yield not only methane but oil too.

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Energy Companies | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

PA Budget with Shell Cracker Plant Tax Credit Passes
July 2, 2012July 2, 2012

At 11:45 pm Saturday, Pennsylvania Gov. Tom Corbett, for the second year in a row (and his second year in office), signed into law an on-time budget for the state—a budget that does not raise taxes. No small feat given the current sad state of the economy.

One of the biggest victories for Corbett in this year’s budget (supported by both Republicans and Democrats) was the passage of a tax credit for Shell and other companies who invest in an ethane cracker plant for the state:

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Chemung County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Talisman Energy

Hit and Run Protest at Talisman Office in Big Flats, NY
June 28, 2012June 28, 2012

Here’s the non-news news: About 100 protesters from Ithaca and New York City showed up for a 30-minute “hit and run” protest in front of Talisman Energy’s offices in Big Flats, NY (near Corning, in Chemung County). The rabble rousers, led by Shaleshock, made wild claims about Talisman polluting the environment and read a statement claiming they’ll lay down in front of trucks if drilling begins in New York. In less than a half hour from the time they arrived, they were “escorted” from the premises, where they were illegally protesting (it’s private property).

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Energy Companies | Pennsylvania | Statewide PA | Yaterra Ventures

New Driller Arrives in the Marcellus – Hunting for Oil
June 28, 2012June 28, 2012

There’s a new name in drillers coming to the Marcellus Shale: Yaterra Ventures. In a press release yesterday (see below), Yaterra announced they they are close to concluding negotiations to take over the leases for 150 wells on 1,600 acres in western Pennsylvania. Yaterra does not mention who the potential seller is. It strikes MDN as unusual that Yaterra would issue a press release prior to the deal closing, but sometimes these high finance deals escape our understanding!

One thing we do understand from the release: Yaterra is not after natural gas in the Marcellus. They’re after shale oil.

Read More “New Driller Arrives in the Marcellus – Hunting for Oil”
CONSOL Energy | Energy Companies | Hess | Mahoning County | Noble County | Ohio | Portage County | Trumbull County | Tuscarawas County

CONSOL’s Plans for Ohio Utica Shale Have Begun
June 28, 2012June 28, 2012

CONSOL Energy’s drilling in Ohio’s Utica Shale is now under way and ramping up rapidly, according to CONSOL’s Harry Schurr who spoke Wednesday at a workshop on the campus of Kent State University. They’ve already drilled their first Utica well in Tuscarawas County, and they plan to drill 15 more this year. CONSOL also has a joint venture with Hess. Hess plans to drill six Utica wells this year.

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