Range Resources Corp

Energy Companies | Industrywide Issues | Range Resources Corp | Reserves (Proved and Unproved)

Range Hits Record High 10.3 Tcfe Proved Reserves in 2014
January 16, 2015January 16, 2015

A high level report wrapping up stellar results for 2014 was issued by Range Resources yesterday. Among the things Range is justifiably crowing about: Their proved reserves have increased by 26% to 10.3 trillion cubic feet equivalent (Tcfe). In 2014, it cost Range an average of $0.64 per million cubic feet (Mcf) to find and develop their Marcellus Shale acreage–get it ready to drill. And in 2014, it cost them an average $0.55/Mcf to drill and develop their acreage. That’s a combined $1.19 per Mcf cost to Range to find, drill and product, so you can see they’re still making money on dry gas that sells for less than $3/Mcf (plus they’ve hedged, meaning they get even more for their gas than the going spot price). There’s plenty of other goodies in yesterday’s announcement…
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CNG/LNG | Energy Companies | Exporting | Industrywide Issues | Range Resources Corp

Cheniere Deal Means Some Marcellus Gas Will Go to Portugal
December 19, 2014December 19, 2014

At least one Marcellus Shale producer, Range Resources, will send Marcellus gas all the way to the Gulf Coast and Cheniere Energy’s LNG export facility in Sabine Pass near Corpus Christi, TX (see Range Announces Multiple Agreements to Sell Natgas & Ethane). It’s quite probable other producers will also ship Marcellus and Utica gas to the Cheniere facility for export as well (see More Marcellus Gas Going to Cheniere LNG Export Facility in TX?). So who will be buying at least some of that Marcellus gas? Yesterday, Cheniere announced a 20-year deal to sell LNG to Portuguese utility company EDP…
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Energy Companies | Pennsylvania | Range Resources Corp | Utica Shale | Washington County

Range Resources Drills Highest-Ever Initial Producing Utica Well
December 16, 2014December 16, 2014

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 Magnum Hunter Takes the Prize: Top Producing Utica Well) as being the most initially productive horizontal shale well ever–in the Marcellus, Utica or any other shale play. Range says their Utica well is producing an initial production rate of a mind-blowing 59 million cubic feet per day (Mmcf/d). In the course of a single month, that one well produces enough gas to heat more than 25,000 U.S. homes for an entire winter. Oh…and just where is Range’s new gargantuan Utica well located? In Washington County, PA…
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Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Range Resources to Flare Their First Utica Well in Western PA
December 1, 2014December 1, 2014

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…
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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

PA Family Sues Range Resources over Nearby Drilling, Impoundment
December 1, 2014December 1, 2014

Range Resources has for years been battling allegations that their wastewater impoundments in Washington County, PA have leaked and polluted nearby water wells. The Pennsylvania Dept. of Environmental Protection (DEP) investigated and in September levied a $4.15 million fine against Range, requiring the company to close five of seven impoundments (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). Along the way several landowners have sued Range–over the impoundments and over nearby drilling. Add one more to the list: The Lauff family in Mt. Pleasant Township has filed a lawsuit alleging negligence by Range in the way they drilled several nearby wells and in their operation of a wastewater impoundment…
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Energy Companies | Pennsylvania | Range Resources Corp | Washington County

South Strabane Twp Approves Range Plan for 10 Wells in W PA
November 26, 2014November 26, 2014

Last night the South Strabane Township (Washington County, PA) board of supervisors voted to allow Range Resources the right to drill up to 10 wells on an 80-acre site. They did, however, impose some 46 conditions on the drilling–conditions Range said it “could live with.” The drill site is near Kopper Kettle Road and Range likely will not begin active drilling until October 2015. Three supervisors voted in favor, one against and one abstained. The interesting thing, to MDN, is that earlier this month anti-drillers were out in force to oppose drilling under (not even on top of) Mingo Creek County Park, about 12 miles from the Kopper Kettle Road site, spouting silly things like drilling will create a “ring of fire” (see Washington County Votes to Establish “Ring of Fire” at Mingo Park). However, at least night’s meeting, most of the residents who attended support Range’s request…
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Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Washington County Votes to Establish “Ring of Fire” at Mingo Park
November 7, 2014November 7, 2014

Two days ago MDN told you that Range Resources is the winner of a contract to drill under (not on) Mingo Creek County Park in Nottingham Township in Washington County, PA (see Range Resources Wins Contract to Drill Under Mingo Creek Park). Precisely 2 (out of 207,820) Washington County residents turned up Thursday night to ask county commissioners to delay their impending vote to move forward with the lease. Certainly nothing out of the ordinary about that–except that the language used by those who oppose drilling (and fossil fuels) never ceases to surprise and amuse us. They intentionally attempt to conjure up images of environmental disaster and holocaust, even though there is no evidence to support their claims. For example, one of the two last night told commissioners by drilling under the park from land adjacent to the park it will create “a ring of fire” around the park. Of course, we immediately thought of Johnny Cash…
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Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Range Resources Wins Contract to Drill Under Mingo Creek Park
November 6, 2014November 6, 2014

Range Resources has won the right to drill under (not on) the Mingo Creek County Park in Nottingham Township in Washington County, PA. We told you back in December that county commissioners were soliciting proposals to drill under the county park (see Washington County Seeks Proposals to Drill Under Mingo Creek Park). In the end, Range Resources, Rice Energy and EQT were all interested–but it was Range’s terms of a $6,500 per acre signing bonus with 18% royalties that won the day…
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Energy Companies | Range Resources Corp

Range Resources 3Q14: Production Hits 1.2 Bcf/d, Big Credit Line
October 30, 2014October 30, 2014

Range Resources released their third quarter 2014 operational and financial update yesterday. The report shows the company is now producing 1.2 billion cubic feet per day, on average, of natural gas equivalents–up 26% from the same time last year. The company says they continue to realize “outstanding” well results in the Marcellus Shale, which is their main focus. Range also has a new bank line of credit agreement in place that allows them to borrow up to a massive $4 billion…
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Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Regulation | Washington County

Civil War Between Cecil Supervisors/Zoning Board Over Compressor
October 20, 2014October 20, 2014

As MDN reported in early October, MarkWest Energy finally (after four years) won the right to build a compressor station in Cecil (Washington County), PA (see MarkWest Wins Court Case to Build Compressor Station in Cecil, PA). The compressor station will be built on property owned by Range Resources. It’s Range’s gas that will flow through that station on its way to market. The Cecil Board of Supervisors voted to not challenge a Commonwealth Court (a lower court) decision that said the zoning board erred when denying MarkWest a permit to build the compressor station. However, the zoning board itself can still appeal the decision (see Cecil Supervisors Vote to NOT Appeal MarkWest Compressor Decision). It appears to us like a civil war has erupted between the Cecil board of supervisors and the zoning board…
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Accidents | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Statewide PA | Tioga County (PA) | Washington County | Wastewater

Second Generation Wastewater Impoundments – Truly Safe?
October 13, 2014October 13, 2014

Little did we know it at the time, but former PA Dept. of Environmental Protection Chris Abruzzo’s last public interview was granted to MDN editor, Jim Willis, just three weeks ago before Abruzzo resigned (see PA DEP Sec. Abruzzo’s Last Public Interview…with MDN). Topic A that Jim asked Sec. Abruzzo was about the recent record fine of Range Resources ($4.15 million) for a series of leaky wastewater impoundments. Abruzzo stated during that interview, several times, that newer “next generation” impoudments have come along that are much safer. What are these “next generation” impoundments and are they really safer?…
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Accidents | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County | Wastewater

Hearing on Range Yeager Impoundment/Water Contamination Continues
October 6, 2014October 6, 2014

More from the ongoing hearing into the Pennsylvania Dept. of Environmental Protection’s actions, or lack of actions, in determining a private water well 2,800 feel (half a mile) downhill from a Range Resources wastewater impoundment that was found to be leaky was fouled by that impoundment. We previously explained that in order for a lawsuit by the landowner Loren Kiskadden against Range for “contaminating” his water well to be valid, the DEP must reverse a previous finding that Range’s Yeager impoundment did not foul his well (see Did DEP Mishandle Range Wastewater Impoundment Investigation?). So one of the DEP’s investigators has been on the hot seat explaining his previous findings and reports…
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Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Washington County

MarkWest Wins Court Case to Build Compressor Station in Cecil, PA
October 2, 2014October 2, 2014

Cecil Township in Washington County, PA is one of the original seven selfish townships that sued and eventually had portions of the state’s Act 13 Marcellus drilling law overturned. The portion overturned restored to local municipalities the right to establish their own zoning regulations when it comes to oil and gas related activities. Apparently Cecil thought they had a blank check to deny anything they wanted, but a recent court decision has brought them back to reality. A Commonwealth Court judge has ruled Cecil must and will allow MarkWest to build a compressor station in an area clearly zoned for it under Cecil’s own rules–a station they’ve been trying to build since 2010…
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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County | Wastewater

Did DEP Mishandle Range Wastewater Impoundment Investigation?
September 29, 2014September 29, 2014

Range Resources has had a long-running dispute with some of the neighbors near some of it’s wastewater impoundments in Washington, PA. Without recounting the details (see MDN’s previous stories here), the entire thing came to a head recently when the PA Dept. of Environmental Protection (DEP) completed their investigation and fined Range the highest amount any driller has paid so far in the modern shale drilling era (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). Part of the deal is that Range is closing those impoundments. There are, of course, legal actions involved, as you might expect. One of the neighbors near the Yeager impoundment sued Range with claims of well water contamination from chemicals leaking from the impoundment. The DEP determined the landowner’s well was not contaminated by the Range impoundment and the landowner challenged that finding in DEP’s version of court, the Environmental Hearing Board. Testimony at the hearing last week from a DEP official about the investigation indicates the DEP “might have used incomplete and inaccurate test information to decide whether chemicals leaking…contaminated a water well and springs”…
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Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Washington County

Range’s Unique Approach to Signing Small Landowners in WPA
September 23, 2014September 23, 2014

Typically villages and cities have not seen Marcellus or Utica Shale drilling under them because of the numbers. To negotiate leases with hundreds or even thousands of landowners over a relatively small area makes no sense when you have to pay landmen and have all of those leases individually vetted by a lawyer. Signing bonuses are piddly and royalty checks aren’t much either. So most drillers have passed by the small villages and towns that sit next to land they otherwise have leased. However, Range has hit on a unique approach. Range has enlisted the help of the Claysville Borough (Washington County, PA) fire department to approach and get residents in the borough to sign a single, standardized group lease–think landowner coalition lease…
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Chesapeake Energy | East Resources | Energy Companies | Industrywide Issues | Public Opinion | Range Resources Corp

What Nightmares Keep Drillers Up at Night? Hint: Not Fines
September 22, 2014September 22, 2014

What are the nightmares that keep drillers up at night? Is it the prospect of having to pay big fines, like the biggest fine paid to date in Pennsylvania, announced just last week (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). While we’re sure that fine stung, the money paid was more like a bee sting. According to the drillers themselves and their comments, the thing that keeps them up at night is negative publicity. Bad public relations (PR). It’s not the fine itself but public perception about being fined or being in violation. Some of the problem is caused by an unrealistically high standard of zero mistakes and zero screw-ups imposed by those who oppose shale drilling…
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