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SRBC Approved 20 Shale Water Withdrawal Requests in September
In September, the Executive Director of the Susquehanna River Basin Commission (SRBC) renewed 20 water-use permits for individual shale gas well drilling pads in Bradford, Clearfield, Lycoming, Sullivan, and Susquehanna counties. We’re just learning of the action via an official notice published in the Oct. 26 edition of the Pennsylvania Bulletin. The approvals, which are NOT subject to public review according to SRBC regulations, are general water permits. Each site will be required to receive a specific water withdrawal approval at a later date. Read More “SRBC Approved 20 Shale Water Withdrawal Requests in September”
For the week of Oct 14 – 20, there were 14 permits issued to drill Marcellus/Utica wells, up from 10 permits issued the prior week. The Keystone State (PA) had just four new permits (down from six the previous week), with three going to Southwestern Energy (now Expand Energy) in Susquehanna County and one for Seneca Resources in Lycoming County. The Buckeye State (OH) had seven new permits, with six going to Encino Energy (EAP) for two pads in Carroll County. The other OH permit was for Ascent Resources in Harrison County. The Mountain State (WV) issued three new permits, with all three going to Southwestern Energy (now Expand Energy) in Marshall County. 
Yesterday, MDN reported on Range Resources’ third quarter update (see 
As we outline in a companion post today, the Biden-Harris Department of Energy is investing $44 million in a project to drill two carbon dioxide injection wells, one in West Virginia and the other in Ohio (see DOE Spends $44M on Drilling CO2 Injection Wells in WV & OH). Some companies are ready to dive into the CCS pool. Others in our region are also exploring the carbon capture and sequestration (CCS) space but are proceeding a bit slower, dipping their toes first. Power plant and energy-trading giant Tenaska and Marcellus/Utica driller EQT are “cautiously moving ahead with plans to develop carbon storage projects in the region.” Both indicate it will take “years to develop” carbon injection wells. They both plan to have carbon wells operating in the next 5-10 years. 
Encino Energy wants to establish new oil and gas wells on Leesville Lake lands owned by the Muskingum Watershed Conservancy District (MWCD) in Carroll County. The conservancy district’s board of directors is expected to consider a lease agreement with the company’s Ohio affiliate at its meeting tomorrow. The left is apoplectic. The MWCD manages over 54,000 acres of land in Ohio. Over the past decade, the MWCD has leased over half of that land for shale drilling. This isn’t the conservancy’s first rodeo with shale drillers. Encino is one of four operators the MWCD has leased with and is the largest of the four that leases MWCD-owned acreage. 
What seemed like a failed exploration in the early 2000s turned into a global economic and geological treasure that helped turn the U.S. into the largest natural gas producer in the world. Thanks to the grit, determination, and belief that there was more to explore, the Range Resources team of 2004 successfully completed the first viable Marcellus Shale exploratory well – the Renz #1 – in Mt. Pleasant Township, Washington County, PA. Range personnel and other officials gathered earlier this week to mark the anniversary and view a new historical landmark plaque that will be installed at the Renz well site next spring. 
Range Resources Corporation, the very first company to drill a shale well targeting the Marcellus Shale layer in Pennsylvania (in 2004), issued its third quarter 2024 update yesterday. Range produced 2.2 Bcfe/d in Q3. The company said it now expects 2024 production to average 2.17 Bcfe/d, up ~2% over the last three years as a result of well performance and optimized gathering and compression. Liquids are expected to comprise more than 30% of production and a big reason why the company made $50.6 million in profit for the quarter. 
Yesterday, EQT announced that the company had reached so-called “net zero” emissions for Scopes 1 and 2 more than a year earlier than planned. The milestone includes assets purchased and added to the company from Alta Resources and Tug Hill/XcL Midstream. However, it does not include the assets added from the Equitrans Midstream merger in July. The company has replaced over 9,000 pneumatic devices, electrified its fracking fleet, and implemented new technologies to monitor methane emissions. According to EQT, it has paid off. 
This morning, 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. The contract begins in November (next month!), which means even though Diversified isn’t (yet) willing to identify the LNG export facility, it will sell to a facility already up and running and not fully supplied, limiting the pool of potentials to a handful. The announcement says more details about the deal will be released in the company’s forthcoming third quarter update. 
Last December, Murrysville (PA) Council members voted to lease land for shale drilling under two town parks—Duff Park and Murrysville Community Park (see 
The Ohio Department of Natural Resources (ODNR) asked a panel of lawmakers called the Ohio Controlling Board to waive the need for competitive bidding for $11.2 million in contracts to plug orphaned oil and gas wells around the state. Yesterday, the Controlling Board approved the request. The contracts were awarded to two companies: Next LVL Energy (owned by Diversified Energy) will receive $7 million, and CSR Services will receive $4.2 million. 
Last Friday, RBN Energy published a blog post declaring that the Shell ethane cracker in Monaca (Beaver County), PA, is now “firing on all cylinders.” The post retrospectively covers the project’s history, from construction through recent problems as the plant was commissioned to the present day. We learned something interesting: Shell, a petrochemical giant and owner of other cracker plants producing various products, had exited the plastic pellets business years ago. The Monaca cracker is Shell reentering that market. 
We always get a small thrill when we notice a new company working in the Marcellus/Utica. This is one of those occasions. Tiburon Oil & Gas Partners, LLC, headquartered in Houston, TX, is headed by four former Carrizo Oil & Gas executives. Tiburon was formed in 2022 “to responsibly acquire, develop, and operate upstream oil and gas assets in the Appalachian Basin.” In a press release issued yesterday, Post Oak Energy Capital announced it is giving buckets of money to Tiburon to close a deal to lease land in the liquids-rich portion of the Utica Shale play in Ohio. Have money, will drill. 
MDN is not a stock-picking service. However, from time to time, we mention the performance of a given company’s stock price if it is unusual or relevant to our audience. We spotted an article by Bloomberg about CNX Resources’ stock price. Last Friday, CNX’s stock hit what Bloomberg calls “a 10-year high,” closing at $36.29. Interestingly, one or more investors bought over 34,000 call options, betting the price would hit $40 by mid-April.