Strange: DEP Fines Range Resouces $1.75M for Water Withdrawals
A strange announcement from the Pennsylvania Dept. of Environmental Protection (DEP) on Friday says that Range Resources has agreed to pay $1.75 million to the state for failure to keep track of water withdrawals made by the company (takes a lot of water to frack, much of which comes from creeks and rivers), and for exceeding the amount of water withdrawn according to the plan they have on file with the DEP. What’s strange about the announcement is that a) you can’t find it on the DEP website itself, b) Range was making withdrawals and not recording/tracking the withdrawals from 2009 to 2014–five years–but apparently the DEP didn’t notice or didn’t care, and c) $950,000 of the $1.75 million “fine” (more than half) will go to fix up and operate the Hamilton Abandoned Mine Treatment System in Findlay Township, Allegheny County…
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In addition to release good news yesterday about record high proved reserves (see today’s companion story), Range Resources issued a second press release yesterday to say they’re scaling back the drilling budget (capital expenditures, or capex) for 2015. Originally they set out to spend $1.3 billion on drilling projects in 2015. They’ve just trimmed it back by 33% to $870 million. They’re scaling back because of the low commodity price of natural gas, plain and simple. That’s the bad news. The good news is that 95% of that money will be spent in the Marcellus Shale. The further good news (why the deuce do we always have to hear these things from Range instead of Sunoco Logistics?!) is that the Mariner East pipeline is now up and running, flowing propane from western PA to storage caverns currently–not all the way to Philadelphia just yet…
Yesterday Range Resources released an announcement with two big pieces of news. The first (and lesser) news is this: Range is trimming its 2015 exploration and production budget by 18% compared to what they spent this year. The 2015 capital expenditure budget is now set at $1.3 billion. However, the company says production will continue to increase, even with less spending on drilling. The second and more important news: Range has drilled a Utica Shale well that has dethroned Magnum Hunter’s Utica well (see 
Flaring a well–which involves burning the initial volume of natural gas (typically waste gas) or because a pipeline is not yet available to hook up to the well–is increasingly a rare event. Most companies attempt to capture even the initial amounts of gas. However, Range Resources is set to begin flaring their very first Utica Shale well, drilled about 10 miles from Washington, PA on the property of the Claysville Sportsmen’s Club in Donegal Township, east of Dutch Fork Lake. The flaring will begin on Dec. 7 and according to Range it will be really big, and really noisy…