PA DEP Fails to Follow-up Forest County Shale Violations for 12 Yrs
A December 11 Pennsylvania Department of Environmental Protection (PA DEP) inspection of a shale gas well pad and water impoundment owned by Nucomer Energy LLC in Hickory Township, Forest County, found the company still had not done final cleanup of the site more than 12 years after the wells were completed and 33 months after DEP issued the original violations for failure to restore the site. While we won’t defend noncompliance, the big story is why in the world the DEP didn’t follow up on the original construction from 12 years ago, and why, after issuing a notice of violation in April 2022, it took another 33 months before the DEP returned to check. Is the DEP asleep at the switch?! Read More “PA DEP Fails to Follow-up Forest County Shale Violations for 12 Yrs”
For the week of Dec 2 – 8, permits issued in the Marcellus/Utica bounced back nicely. There were 28 new permits issued last week, more than doubling the 12 issued the week before (and matching the 28 issued three weeks ago). The Keystone State (PA) issued 18 new permits, with eight going to EQT spread across three counties: Jefferson, Lycoming, and Washington. Chesapeake Energy (now Expand Energy) received four permits, all of them in northeastern PA’s Wyoming County. CNX Resource scooped up two permits, both in Westmoreland County. The final four permits were singles issued to Blackhill Energy (Bradford County), XPR Resources (Centre County), Inflection Energy (Lycoming County), and Olympus Energy (Allegheny County). 
Yesterday, Northern Oil and Gas, Inc. (NOG) announced it had entered a Joint Development Program with an unnamed Marcellus/Utica driller to invest $160 million in 2025 for new well drilling. In return, NOG will receive a 15% working interest (i.e., ownership) in the assets. NOG did not identify the driller but called it “one of Appalachia’s most capital efficient operators.” 
The highly functional and responsible Susquehanna River Basin Commission (SRBC), unlike its completely dysfunctional and irresponsible cousin, the Delaware River Basin Commission (DRBC), continues to support the shale energy industry by approving water withdrawals for responsible and safe shale drilling. Yesterday, the SRBC board approved 14 new (or renewed) water withdrawal requests within the basin, four for water used in drilling and fracking shale wells in Pennsylvania. Coterra Energy received two water request approvals, and Expand Energy (Chesapeake Energy & Southwestern Energy) received the other two. 
PennEnergy Resources, LLC, the 11th largest shale driller in Pennsylvania, agreed to a “deal” with the Biden Department of Justice (DOJ), the Biden Environmental Protection Agency (EPA), and the Josh Shapiro Department of Environmental Protection (DEP) to pay a $2 million fine and spend another $3.6 million on “upgrades” related to air emissions at its well pads. Based on inspections done in 2018 (six years ago!), the EPA accused PennEnergy of illegal air emissions at five “facilities” (well pads) in Butler County, PA. Yet PennEnergy is being forced to “fix” 17 of its oil and gas production facilities and implement “partial measures” at an additional 32 facilities in Butler County and neighboring Lawrence County. 
One month ago, we brought you the news that Diversified Energy and EQT Corporation had settled a class action lawsuit originally brought by several West Virginia landowners (see 
CNX Resources announced yesterday it had struck a deal to buy the assets of Apex Energy II, LLC, a portfolio company of funds managed by Carnelian Energy Capital Management, for $505 million. Apex owns wells, acreage, and pipelines in Westmoreland County, PA. The Apex assets are close to, in some cases adjacent to, CNX’s considerable assets in the region. The deal is expected to close in the first quarter of 2025. 
The research arm of Enverus (formerly Drillinginfo), one of the most trusted, energy-dedicated SaaS platforms offering real-time access to analytics, insights, and benchmark cost and revenue data, earlier this week published a new report on the Utica Shale. The report specifically discusses Utica oil—the production performance for Utica wells, and the economics of the play. The analysts of Enverus conclude that the Utica is “America’s modest middleweight contender.” However, that’s not the biggest news. 
According to an extensive report appearing on the World Oil website (and in the November issue of the magazine), multiple possible futures lie ahead for the Marcellus and Utica shales. So, which future will come to pass? Today, both industry and government see the Marcellus and Utica formations as tremendous opportunities for companies and state governments, with domestically produced energy, jobs, and a huge economic impact. 
Three weeks ago, MDN told you that Coterra Energy, formed in 2021 by the merger of the Marcellus-focused Cabot Oil & Gas and the Permian/Anadarko-focused Cimarex Energy, has succumbed to the siren song of more oil drilling (see 
In October, Diversified Energy Company (formerly Diversified Gas & Oil) announced it had signed a deal to supply 40 billion cubic feet (Bcf) of natural gas over three years to a “major Gulf Coast LNG facility” for exporting (see 
There is an important development for landowners AND drillers in a class action case that began some seven years ago. A civil suit was brought by Harrison County oil and gas owners against Antero Resources Corp., claiming the company had deducted post-production costs from royalties not allowed under the leases they had signed. In 2022, the U.S. District Court for the Northern District of West Virginia ruled mostly in favor of the landowners. The District Court sent two certified questions to the state Supreme Court. The Supremes ruled on both issues in November. The court ruled that energy companies cannot deduct post-production costs without explicit lease language, favoring royalty owners over drillers.