Energy Services

Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

GreenHunter to Coast Guard, We’re Barging While You Fiddle Around
February 9, 2015February 9, 2015

As MDN chronicled on Friday, there is a dispute between GreenHunter Resources and the U.S. Coast Guard (USCG) over what, exactly, constitutes “oil field waste” (see GreenHunter/Coast Guard War of Words — MDN Explains It). If we might toot our own horn for a moment, we were the first to understand and share that understanding of the key issue, which is whether or not produced water (“brine”) from horizontal wells is essentially the same chemically as produced water from vertical-only wells. That is what GreenHunter and the USCG disagree about. GreenHunter says it is the same thing, and the USCG isn’t so sure. On Saturday, our interpretation of that key issue was confirmed by USCG statements–they remain concerned that low levels of radiation, which may or may not be present in produced water from horizontal wells, DOES make shale well produced water potentially different from regular old produced water from vertical wells…
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Anti-Drilling/Fossil Fuel | Crime | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Transco | Williams

Convicted Lancaster Protesters Taunt Williams After Court Date
February 9, 2015February 9, 2015

It’s kind of funny how eight anti-drillers can conflate themselves to seem as if they represent untold thousands. They get themselves arrested for a lawless act and they’re actually proud of it–like they’ve accomplished something with their lives. We’ve been following the somewhat bizarre story of the “Conestoga 8” in Lancaster County, PA who are trying to stop the Williams Atlantic Sunrise Pipeline project. One of the eight is supposedly a Native American (i.e. Indian) who goes by the name of Chief Carlos Whitewolf (see Indians on the War Path Against Pipeline in Lancaster County, PA and Indians on the Anti-Pipeline War Path – Part 2). Except his last name isn’t really Whitewolf–it’s Rivera. Huh. A “Native American” with a very Hispanic first and last name. That’s a new one. Anywho, Chief Whitewolf-Rivera is protesting on behalf of the Conestoga people–who have been extinct for generations. He’s asking the United Nations to step in and stop the pipeline, on behalf of the long-dead Conestogas (see Lancaster, PA Antis Request United Nations Interfere in Pipeline). Chief Whitewolf-Rivera and the other small band of ne’er do wells had their day in court, and then they went on a field trip to the local Williams office straight from court to see if they could get arrested again…
Read More “Convicted Lancaster Protesters Taunt Williams After Court Date”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

GreenHunter/Coast Guard War of Words — MDN Explains It
February 6, 2015February 6, 2015

MDN now believes we have the full story, and a proper understanding, for the current war of words between GreenHunter and the U.S. Coast Guard over the issue of barging produced water, sometimes referred to as brine, on the Ohio River and other inland waterways. On Wednesday MDN brought the news that GreenHunter claimed the Coast Guard has given the all clear to begin barge shipments of brine (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). Yesterday we reported a response from the Coast Guard saying no, they haven’t decided and haven’t given clearance (see Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter). Yesterday GreenHunter, a publicly traded company, filed a statement with the Securities and Exchange Commission (SEC) challenging the Coast Guard’s statement. It all comes down to semantics. MDN has spoken with a barge operator, has read the GreenHunter SEC statement (below), and we now think we know what is happening…
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Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Research | Statewide PA | Sunoco Logistics

New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA
February 6, 2015February 6, 2015

Sunoco Logistics has an important new tool in its fight to build the Mariner East 1 and Mariner East 2 pipeline projects in Pennsylvania. Mariner East 1 is already partially up and running but needs the final leg completed that will connect it to the Marcus Hook refinery near Philadelphia (see Range Cuts 2015 Drilling Budget 33%; Mariner East Up & Running!). Mariner East 2 is still on the drawing board. It will be a new 350-mile pipeline, most of it laid next to Mariner East 1 (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The new tool? Sunoco hired Econsult Solutions Inc. to do a proper, independent, rigorous and accurate study of the potential economic impact from the two projects on the PA economy. The study, titled “The Economic Impact of Sunoco Logistics’ Mariner East Projects in Pennsylvania” (full copy embedded below), says the two projects will add $4.2 billion to Pennsylvania’s economy, support more than 30,000 jobs during the construction period, and create 300-400 permanent jobs…
Read More “New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA”
Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy Update on Active Projects in the Northeast
February 6, 2015February 6, 2015

On Wednesday Spectra Energy provided their 2014 financial and operational results. Spectra is a large midstream company (pipelines and processing plants) with a large and growing presence in the Marcellus/Utica. Both revenues and earnings were up for the company in 2014, which is interesting. Our attention, however, is in the updates to various pipeline projects they’re building or soon will be building in our neck of the woods, name updates for the NEXUS pipeline, Ohio Pipeline Energy Network (OPEN), Texas Eastern Appalachian Lease Project and other projects located here in the northeast…
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Deep Well Services | Energy Services | Industrywide Issues | Supply Chain

Marcellus/Utica Supply Chain Firms Being Asked to Trim Prices 10%
February 6, 2015February 6, 2015

Oilfield services companies and other companies in the Marcellus/Utica supply chain are feeling the squeeze. According to an article in the Pittsburgh Business Times, companies in the “supply chain” are being asked to cut their prices by 10% or more. Perhaps “asked” is too gentle a word…
Read More “Marcellus/Utica Supply Chain Firms Being Asked to Trim Prices 10%”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Regulation | Wastewater

Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter
February 5, 2015February 5, 2015

Was GreenHunter fibbing when they claimed the U.S. Coast Guard has given them permission to barge produced water down the Ohio River? MDN brought you the news yesterday that parent company MagnumHunter CEO Gary Evans and GreenHunter COO Kirk Trosclair said they have received approval from the U.S. Coast Guard to ship produced water via barge down the Ohio River (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). You can listen to them say it themselves on this analyst phone call. However, according to an article in today’s Pittsburgh Tribune-Review, the Coast Guard is saying that’s not true–they have NOT yet given a final go-ahead to GreenHunter…
Read More “Breaking: Coast Guard Says They Did NOT Grant Barge Permission to GreenHunter”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Regulation | Wastewater | West Virginia

GreenHunter Faces Challenge to Get Wheeling Barge Facility OK’d
February 5, 2015February 5, 2015

Yesterday MDN shared the big news that GreenHunter Resources has now received permission from the U.S. Coast Guard to haul produced water via barge down the Ohio River (see US Coast Guard Approves Brine Shipping via Barge on Ohio River). Today that assertion is in question (see our related story on the Coast Guard’s response). Aside from the question of whether the Coast Guard did or did not grant permission for barging of produced water, GreenHunter has another problem–getting permission to load the water onto barges in the first place at their facility in Wheeling, WV…
Read More “GreenHunter Faces Challenge to Get Wheeling Barge Facility OK’d”
Dauphin County | Dominion Energy | Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Statewide PA | Supply Chain

Dominion Selects PA Company to Manufacture 540 Miles of Pipe
February 5, 2015February 5, 2015

Keepin’ it in the family. Love it. Dominion plans to build the Atlantic Coast Pipeline–a 550-mile, $5 billion natural gas pipeline that will flow, cheap, abundant, clean-burning Marcellus Shale gas from West Virginia into Virginia and North Carolina (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). Provided the Federal Energy Regulatory Commission (FERC) approves it, construction will begin in 2016. Yesterday, Dominion announced that a Pennsylvania company near Harrisburg–Dura-Bond–has been selected to manufacture 540 of the 550 miles of the pipe needed for the project. It is, according to Dura-Bond, the largest order in the company’s history. The announcement doesn’t disclose the terms of the deal, but we do know it will generate 150 new jobs at Dura-Bond and inject a huge amount of money into the Harrisburg-area economy starting later this year. American/Pennsylvanian jobs, American/Pennsylvanian company. All in the heart of the Marcellus…
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Anti-Drilling/Fossil Fuel | Cumberland County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Sunoco Logistics

Anti Groups “Outraged” at Mariner East 2 Open House Invite
February 5, 2015February 5, 2015

Once again the Philadelphia-based anti-drilling group Clean Air Council (CAC), along with THE Delaware Riverkeeper (Maya van Rossum) have their collective knickers in a twist. The two groups are “outraged” that Sunoco Logistics, in sending around invitations to an open house on the Mariner East 2 pipeline, didn’t send one to them. Not only that, but the invites that were sent out–to landowners and elected officials–said the invite is “not transferable” to anyone else. We could hear the howls and screams from Philly all the way up here in upstate NY!…
Read More “Anti Groups “Outraged” at Mariner East 2 Open House Invite”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Regulation | Ritchie County | Wastewater | West Virginia

US Coast Guard Approves Brine Shipping via Barge on Ohio River
February 4, 2015February 4, 2015

Some big news coming from GreenHunter Resources, the wastewater disposal arm of MagnumHunter Resources. As MDN has chronicled for the past several years, MagnumHunter has been trying to secure a permit from the U.S. Coast Guard to transport frack wastewater via barges down the Ohio River. The Coast Guard floated a preliminary plan to allow it all the way back in November 2013 (see More on Coast Guard Plan to Allow Barging of Frack Wastewater). However, until now, they have withheld permission due to meddling by The White House and other federal agencies. According to a conference call last week, MagnumHunter/GreenHunter officials said the Coast Guard “quietly” granted permission in December to allow them to begin barge shipments down the Ohio River. The permission apparently applies only to brine, or “produced water” and not flowback for frack wastewater…
Read More “US Coast Guard Approves Brine Shipping via Barge on Ohio River”
Energy Services | Industrywide Issues | Kinder Morgan | Litigation | Pipelines | Tennessee Gas Pipeline

Mass. Town Sues FERC to Stop Pipeline Claiming Gas is for Export
February 4, 2015February 4, 2015

A bunch of aging New Englanders ~~hippies~~ have no problem whatsoever with the federal Environmental Protection Agency running roughshod all over the Constitution with its edicts that shut down coal-powered electric plants and threaten oil and gas drilling, but the same people turn around and have filed a lawsuit against the Federal Energy Regulatory Commission (FERC) claiming a law granting FERC the power to regulate pipelines, including pipelines that will flow oil and gas for export, is unconstitutional. That’s real chutzpah. We’ve previously written about the Deerfield, MA Town Health Board and their puffery in presuming to “ban” the Tennessee Gas Pipeline expansion through their town on the basis that some of the gas flowing through it would be exported (see Deerfield, MA Hoping Kinder Morgan Sues Them over Pipeline “Ban”). Deerfield can’t get FERC to sue them, so Deerfield has decided to sue FERC instead…
Read More “Mass. Town Sues FERC to Stop Pipeline Claiming Gas is for Export”
Energy Companies | Energy Services | EV Energy Partners | Ohio | Statewide OH | Utica East Ohio Midstream | Utica Shale

EVEP Wants to Sell Interest in Utica East Ohio/More Utica Acreage
February 3, 2015February 3, 2015

EV Energy Partners (EVEP) is a master limited partnership, or MLP, which distributes profits to “unit holders” instead of plowing profits into more projects. They like to invest in mature, already drilled wells and pipeline companies–things that act like an annuity throwing off profit with very little risk. Over the years EVEP amassed a huge amount of acreage in Ohio–before the Utica was known–mostly for conventional (vertical only) wells. However, some of that property is in prime Utica territory–so EVEP has been looking, since 2009, to sell it. They reiterated that in November (see EVEP Selling More Ohio Utica Acreage in 2015). There’s another fleeting reference to selling more Utica leases in EVEP’s fourth quarter 2014/guidance for 2015 press release issued yesterday. The “new news” (for us) in yesterday’s announcement is that EVEP plans to sell their 21% interest in Utica East Ohio–a midstream/pipeline company operating in Ohio…
Read More “EVEP Wants to Sell Interest in Utica East Ohio/More Utica Acreage”
Access Midstream Partners | Energy Services | Industrywide Issues | M&A | Williams

It’s Official: Williams and Access Midstream Tie the Knot
February 3, 2015February 3, 2015

Several weeks ago MDN told you that yesterday, Feb. 2, would be the big wedding day for the merger (actually takeover) of Access Midstream by Williams (see Wedding Day: Williams & Access Midstream Get Hitched on Feb 2). The wedding took place as planned and the marriage is now happily consummated. The groom was Williams (grooms are always men…pushy and domineering ya know). The bride was sweet Access Midstream, previously known as Chesapeake Midstream. Bride Access took the Williams name as of yesterday, creating a midstream behemoth whose market capitalization will come close to rivaling the country’s largest midstream company, Kinder Morgan…
Read More “It’s Official: Williams and Access Midstream Tie the Knot”
Dominion Energy | Energy Services | Industrywide Issues | Pipelines

Dominion Buys SC/GA Pipeline Network, Plans for Marcellus Gas?
February 3, 2015February 3, 2015

Dominion Resources, a large energy producer and midstream company operating primarily in the mid-Atlantic and southeast, is behind the the Atlantic Coast Pipeline–a 550-mile, $5 billion natural gas pipeline that will run from West Virginia through Virginia and into North Carolina to deliver 1.5 billion cubic feet per day of Marcellus and Utica Shale gas to VA and NC (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). Yesterday Dominion announced they’ve picked up Carolina Gas Transmission (CGT) for a cool $492.9 million. CGT operates 1,500 miles of FERC-regulated interstate natural gas pipeline in South Carolina and southeastern Georgia. We wonder if Dominion plans to connect the Atlantic Coast Pipeline to CGT and flow Marcellus/Utica shale gas deep into the heart of Dixie…
Read More “Dominion Buys SC/GA Pipeline Network, Plans for Marcellus Gas?”
Blue Racer Midstream | Energy Services | Industrywide Issues | Mahoning County | Ohio | Processing Plants | Utica Shale

Blue Racer Shelves Plans for Mahoning, OH Wet Gas Plant
February 2, 2015February 2, 2015

It was only last August that Blue Racer said they would build a new $70 million wet gas processing plant in Mahoning County, OH (see Blue Racer to Build New Wet Gas Plant in Mahoning County, OH). A Blue Racer Midstream executive backpedaled last Thursday at the Marcellus-Utica Midstream conference and said those plans are now shelved, indefinitiely. Why? That part of the shale play “hasn’t panned out yet” for the company…
Read More “Blue Racer Shelves Plans for Mahoning, OH Wet Gas Plant”