Shell Pays $43/Foot in Recent Deal for Ethane Pipeline Easements
In February 2016, MDN exclusively broke the news that Shell had begun to sign leases with landowners for a 97-mile ethane pipeline (two branches) to feed their mighty cracker plant (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). Since that time we’ve tracked any news we could find that reveals what Shell is paying landowners in Beaver County (and elsewhere) for the right to run the ethane pipeline (called the Falcon Ethane Pipeline) across their land. So far, we’ve seen rates as high as $75 per foot, and as low as $43 per foot. In the most recent round of easements–the first signed since August–Shell once again paid landowners $43/foot. Here’s the details of where the latest easements were signed, and for how much…
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One of the major themes at last week’s Shale Insight conference was NGLs (natural gas liquids), in particular ethane–and how the petrochemical industry that uses those NGLs will revolutionize the economic landscape of western PA, eastern OH, and northern WV–the tri-state area. One of the hottest of the hot topics is ethane storage. As we reported in early September, a research team from West Virginia University spent the past year studying geologic regions in 50 counties in the Marcellus/Utica Shale region to see if our region would support a proposed $10 billion ethane storage hub (see 
Shale Insight 2017 is now in the books. Another year, another great show. MDN editor Jim Willis is back in the office, chained to his computer. Next week Jim will share notes he took at the conference. For now, below are highlights from other news source from Day Two of the event. Unfortunately Jim had to leave before the closing keynote, given by former Trump White House Press Secretary Sean Spicer. But others were there to hear what Spicer had to say. Day Two began with a focus on the Shell ethane cracker. Members of the Shell team were on hand to describe how this critical project affects the region, and where it fits in the Marcellus/Utica landscape. One of the Shell team members said the skyline at the Beaver County site will change dramatically over the next 12 months as the buildings housing the various components are built. It was a fascinating talk with lots of information. Below is a roundup from Day Two…
Yesterday we brought you the “Top 10” drillers in southwestern Pennsylvania, as ranked by the number of permits issued (see 
Last week MDN told you that Community College of Beaver County (CCBC) is operating a program in process technology that leads to an associate’s degree as preparation for a job at Shell’s $6 billion ethane cracker plant, being built now in Beaver County (see 
Looking to land a job at Shell’s $6 billion ethane cracker plant when it’s up and running in a few years? A new program set up by Shell with the Community College of Beaver County (CCBC) may give you a leg up. CCBC offers a program in process technology that leads to an associate’s degree. As of this spring, 45 people were enrolled. CCBC expects 70 people to enroll this fall. CCBC’s process technology degree is just one part of their effort to train people for advanced manufacturing careers with Shell and other petrochemical companies. CCBC is partnering with businesses, nonprofits, other colleges to form the Tri-State Advanced Manufacturing Consortium which will help prepare students and retrain workers to meet the needs of energy and manufacturing companies throughout the region. More deets on getting trained for a future cracker job…
Earlier this week MDN reported that Shell had settled an action brought by Big Green groups against an air permit issued for their now under construction ethane cracker plant in Beaver County, PA (see 
Exactly two years ago, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories)–filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca, PA (see 
As the mighty $6 billion Shell ethane cracker begins construction in Beaver County, PA, plenty of local (and regional) businesses are asking the question: How can we get in on the action? How can we win contracts for goods and services? The Beaver County Chamber of Commerce aimed to help answer that question yesterday at a 3-hour event held at the Club at Shadow Lakes. The “Doing Business in the Era of Shell” seminar drew a crowd of 300+. Some of the speakers were from Louisiana–where they went through a similar process when SASOL built an $11 billion petrochemical project there. Here is some of the wisdom passed along to those who attended…
MDN has been tracking the prices paid by Shell to landowners to run an ethane pipeline under their land to feed the might cracker plant the company is just now beginning to build in Beaver County, PA. Why? So landowners in Beaver (and other locations) have a useful metric for judging the offers they receive. To be fair, a company that wants to run a local gathering pipeline across someone’s land will pay a lot less than Shell is willing to pay–given you can’t move the cracker plant. Interstate pipelines will likely pay something less too. But still, we find it interesting and useful to know what Shell is up to in Beaver. We don’t have a lot of data points, yet. In June, we learned that Shell paid roughly $75 per foot for 3,138 linear feet of pipeline space in Greene Township (see 
Shell officials held the fourth (so far) public meeting in Beaver, PA to talk with local residents about the mammoth, $6 billion ethane cracker plant the company is building in their midst. For the most part, the event was uneventful. More than 150 people came out to hear what the petrochemical giant had to say. A table at the event held polyethylene pellets–the stuff that will be manufactured by the plant. Also on the table were a variety of products made from those pellets, including bottles, food packaging and more. One local resident opposed to the plant told a reporter she had to restrain her potty mouth because Shell officials would not answer her questions from the floor–in front of the crowd. Shell (and others in the o&g industry) have wised up. They post representatives at tables who are happy to answer private questions privately, but they don’t throw open the floor to antis who want to bleat and blat in front of an audience. We think it’s a wise precaution. The woman could get her questions answered, and express her unhappiness–but she wanted to do it in front of a crowd and in front of cameras and microphones. No thanks. Organize your own meeting if you want to do that…
Good news if you’re a welder, or interested in a welding career, and you live in southwestern Pennsylvania. Shell needs you. Shell is in the process of building a massive, $6 billion ethane cracker plant in Beaver County, PA (northwest of Pittsburgh). Cracker plants have lots of pipes that need to be welded as the plant goes up. While these jobs are not long-term, as in “the rest of you career,” they’re long enough, likely lasting several years. Steamfitters Local 449 is right now recruiting new apprentices, offering a free 17-week apprentice training program. Local 449 is holding an open house this Saturday…
One would hope a $6 billion ethane cracker project like the one being built by Shell in Beaver County, PA would consist of 100% American-made parts. But alas, such is not the case. The biggest story to hit Beaver County, likely ever, keeps reporters at the Beaver County Times busy (“busy beavers”–groan). The ace reporting staff at the local newspaper noticed a job posting from Bechtel Corp., one of the major contractors on the project, on LinkedIn. The job posting advertised for a project superintendent for the Shell cracker plant–a position located in Houston and in Tampico, Mexico. The ace reporters followed it up and got confirmation that some of the components for the cracker plant will be manufactured in Mexico and shipped to PA. No doubt in an effort to tamp down what could become a firestorm, Shell quickly confirmed the Mexico connection and pointed out that “more than 80%” of the individual components for the plant will be built in the U.S. Will this news about Mexico parts make a difference in the larger scheme of things?…
An article published in the anti-drilling Pittsburgh Post-Gazette is quite bizarre–even by Post-Gazette standards. The article reports concerns expressed by residents in Beaver County, PA at a recent meeting of the Ambridge Water Authority. The opener quotes one resident this way: “‘No one knows what’s going to happen when the explosions are set off,’ said Bob Schmetzer, 70, of South Heights, referring to the underground blasting required in the fracking process. ‘God forbid that the dam would breach and take out human lives down Raccoon Valley … that would be a national catastrophe.'” Uh, Mr. Schmetzer sir…and “reporter” Eliza Fawcett…there IS NO FRACKING involved with installing a pipeline. Perhaps they’re both a bit confused? Mr. Schmetzer’s confusion likely comes from working with a local anti-fracking group, the Beaver County Marcellus Shale Awareness Committee. The meeting appeared to have gone downhill from there, with wild claims that “volatile compounds” from the Shell cracker plant will “settle” in the Ambridge Reservoir, endangering everyone who drinks water from it. And that the area will become “Cancer Valley”…