Industrywide Issues

EMG | Energy Services | Industrywide Issues | Kinder Morgan | MarkWest Energy | Ohio | Pipelines | Processing Plants | Statewide OH | Tuscarawas County | Utica Shale

Kinder Morgan/MarkWest OH Midstream Projects Advance
October 21, 2013October 21, 2013

In August, Kinder Morgan, MarkWest and The Energy and Minerals Group (EMG) announced a new joint venture on two projects aimed at the Marcellus/Utica Shale region. The first is a a 400 Mmcf/d cryogenic processing plant in Tuscarawas County, OH, and the second a new NGL pipeline from Ohio all the way to the Gulf Coast (see 2 New OH Projects: Cryo Processing Plant & NGL Pipeline to Gulf).

Speaking on an earnings conference call last week, Kinder Morgan CEO Richard Kinder gave a brief update on the two projects. Bottom line, the projects continue to advance, but still no mention of capital expenditure they expect to lay out. (Note: For details on these two KM/MarkWest midstream projects, along with a comprehensive list of 111 midstream infrastructure projects planned for the Marcellus/Utica, see the newly released Volume 2 of the 2013 Marcellus and Utica Shale Databook)…
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Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | NGLs | Pipelines | Williams

Bluegrass Pipeline Makes Progress in Bluegrass State
October 18, 2013October 18, 2013

In early September, MDN reported that Williams and Boardwalk Partners, joint venture partners building a natural gas liquids (NGL) pipeline that will stretch from the Utica/Marcellus all the way to the Gulf Coast, had hit some problems in crossing Kentucky (see Bluegrass NGL Pipeline Hits Brick Wall in the Bluegrass State).

The companies now report they have landowner agreements in place for nine of 13 counties they need to cross in KY, so progress is definitely being made…
Read More “Bluegrass Pipeline Makes Progress in Bluegrass State”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Information Lockdown at Heinz Endowments over Vagt Departure
October 18, 2013October 18, 2013

Earlier this week MDN told you about the departure of Robert (“Bobby”) Vagt as president of the Heinz Endowments (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?). It appears that at least one of the “green” board members of the Heinz Endowments (cough *Andre Heinz* cough) wasn’t happy that the family foundation decided to reach across the isle, under Vagt’s leadership, to work with the Marcellus Shale drilling industry on strict certification standards for drillers.

The problem is, no one knows for sure. It’s all still rumor and speculation. Heinz is being super tight-lipped and according to one reporter MDN spoke to, the organization is on “information lockdown” over this issue. The Pittsburgh Tribune-Review writes the following editorial about the situation–an editorial we agree with 100%:
Read More “Information Lockdown at Heinz Endowments over Vagt Departure”
Air Quality | Anti-Drilling/Fossil Fuel | Energy Companies | Halcon Resources | Industrywide Issues | Ohio | Trumbull County

Anti-Drilling CA Group Assists Residents Near Halcon OH Drill Site
October 18, 2013October 18, 2013

Yesterday MDN told you about Halcon Resources drilling another two wells at the Kibler site near Lordstown (Trumbull County), OH (see Halcon Drilling 2 More Wells Near Lordstown, OH). Seems there’s a bit more to the story than the neighbors being concerned about nighttime noise and lights. They’re also concerned about air quality, and residents of a nearby trailer park are working with an anti-drilling, anti-fossil fuel company from California called Global Community Monitor to do air quality sampling to ensure they aren’t breathing in dangerous levels of pollutants.

MDN asks: Why even bother with the pretense of testing? Global Community Monitor has already pre-determined what the outcome will be. Just announce the results now–that drilling anywhere at any time will kill the planet…
Read More “Anti-Drilling CA Group Assists Residents Near Halcon OH Drill Site”
Industrywide Issues | Ohio | Processing Plants | Statewide OH

OH Company Scores Another Customer for GTL – Thailand
October 18, 2013October 18, 2013

A few weeks ago MDN told you about an Ohio company plans to build a gas-to-liquids (GTL) plant in Ohio (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH). GTL turns natural gas, in this case from the Utica Shale, into other hydrocarbons, like diesel fuel and specialty chemicals. It’s a cool new technology based on old technology.

The OH company that will build the plant in Ashtabula–that is, the one with the technology–is Velocys, a subsidiary of Oxford Catalysts Group (Dublin, OH). Velocys says they’ve just signed up another new customer for their GTL technology–Thailand!…
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Norse Energy | Regulation | Statewide NY

Lights Turned Off, Door Closed – Good Night, Norse Energy
October 17, 2013October 17, 2013

It’s a sad day for New York landowners–for everyone really. Norse Energy has converted from Chapter 11 bankruptcy, which means the courts protect you while you regroup, to Chapter 7, which means break it all up and sell off the pieces to the highest bidder. Norse has now literally, as well as figuratively, shut off the lights and closed the door behind them. The remaining eight employees of Norse have just been let go.

For years MDN has been writing about the plight of Norse and their inability to tap shale deposits under 130,000 acres of leased land in New York. The signs have been there for some time that Norse may face extinction if NY does not open up for shale drilling (see Norse Energy 2Q13: Concerned About Remaining ‘a Going Concern’). Thanks Gov. Andy! You sure know how to make NY “business friendly.” Norse announced the change to Chapter 7 last week in a very brief press release. Buffalo Business First reports about the final employees being shown the door…
Read More “Lights Turned Off, Door Closed – Good Night, Norse Energy”
Energy Companies | Forest County | Industrywide Issues | Litigation | McKean County | Minard Run Oil | Pennsylvania | Regulation | Warren County

Final Appeal? Court Says Drilling in Allegheny Natl Forest Legal
October 17, 2013

When the federal government digs in its heels and is intent on obstructing justice, it can take a long time to remedy via the courts. But (sometimes) justice does prevail in the end. We now have–hopefully–a final resolution in the ongoing series of cases known as Minard Run Oil v. United States Forest Service. We wrote about this case back in 2011, but it goes back much further, to 2009 (see Drillers Sue US Govt over Allegheny National Forest Delays). As a brief background, the federal government purchased a number of parcels of land in 1923 that became the Allegheny National Forest (ANF) in northwestern Pennsylvania. However, the government did not purchase the mineral rights under most of the land–seems that back in 1923 the government didn’t just print the money it wanted (“quantitative easing” anyone?).

Even though they don’t own the mineral rights, in 2009 the U.S. Forest Service (federal agency managing the ANF) entered into what was an illegal out of court settlement with environmentalist groups stipulating that the National Environmental Policy Act (NEPA) will govern all oil and gas drilling in the ANF. It effectively shut down any new drilling in the forest, denying private citizens the ability to benefit from their private property (mineral) rights. The drilling industry sued and the case has now gone through three appeals. The most recent appeal was heard by the federal U.S. Court of Appeals Third Circuit. The court ruled, once again, in favor of private property rights…
Read More “Final Appeal? Court Says Drilling in Allegheny Natl Forest Legal”
Energy Companies | Halcon Resources | Hydraulic Fracturing | Industrywide Issues | Noise | Ohio | Trumbull County | Utica Shale

Halcon Drilling 2 More Wells Near Lordstown, OH
October 17, 2013October 17, 2013

Lights! Action! Noise! … No, it’s not the set of a Hollywood movie, but the resumption of drilling at a Utica Shale well site near Lordstown (Trumbull County), OH. Halcon Resources drilled one well at the “Kibler” site earlier this year, and during the drilling, neighbors complained about the nighttime noise and lights. That first Kibler well was so successful for Halcon, they’re back to drill two more on the same pad. This time, however, they double-dog promise to reduce the noise and lights by erecting a sound barrier and using directed lighting.

Still, some of the neighbors are not impressed and say they’d feel better if Halcon just walked over and talked to them about their plans…
Read More “Halcon Drilling 2 More Wells Near Lordstown, OH”
Energy Companies | Hess | Industrywide Issues | Jefferson County (OH) | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

Hess Will Challenge OH Court Decision to End Lease
October 17, 2013October 17, 2013

A few weeks ago MDN told you about the court case Hess lost where they tried to tie up the leases for Ohio landowners beyond the initial 5-year term (see Hess Loses OH Court Case, May Owe Big Bucks to 300 Landowners). What it amounts to is that Hess doesn’t want to pay them more money. The landowners who sued and won–Stephen and Melissa Griffiths from Jefferson County, OH–received an initial $6,500 in bonus payments in 2007 for their 228 acres. If they were signing a lease today they would get something like $1.5 million! Hess didn’t drill on the property during the 5-year term called for in the lease, but instead claim some cockamamie extension in the lease terms allows them extra time before they drill. Sorry Charlie, the judge said no.

Hess is miffed and says they will “vigorously challenge” the court decision, tying up the Griffiths’ lease for perhaps another year while this works its way through yet another court…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Youngstown Hypocrites “Adjust” Language in Frack Ban Measure
October 17, 2013October 17, 2013

In a transparently hypocritical move, anti-fossil fuel agitators who are placing a referendum on the ballot in Youngstown, OH for a second time this year have removed language that would have prevented one of the city’s biggest employers and businesses, Vallourec Star (manufactures steel pipes) from selling its pipes to the drilling industry. All other businesses that sell to the natural gas industry–you’re toast under the ban.

You see, it’s OK to profit from the drilling industry, it’s OK to use the cheap natural gas that comes from the drilling industry to heat homes and use for cooking–just don’t drill anywhere near me for that gas. It’s called “good for thee but not for me.” It’s hypocrisy on glorious display. If the dunderheads prevail in hoodwinking enough voters to pass the ban, we hope and trust Vallourec will still make good on their threat to move outside of the city limits–denying the city millions in tax revenue. And we trust the anti-frackers will turn off the natural gas spigot heating their homes–after all, it comes from fracking. Throw another log on the fire Wilma!…
Read More “Youngstown Hypocrites “Adjust” Language in Frack Ban Measure”
Delaware County | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY

When Do/Don’t Municipal Frack Bans Violate the U.S. Constitution?
October 17, 2013October 17, 2013

When do (and when don’t) municipal bans on natural gas drilling violate the U.S. Constitution? It’s a sticky question and it takes an ace legal mind to tackle this broad and complex topic. An ace attorney has done just that. MDN friend and litigator Ken Kamlet from the Binghamton law firm Hinman, Howard & Kattell (HHK) does a deep dive on the topic of when town bans violate the Constitution. This is not a theoretical exercise for Kamlet. The lawyers at HHK are currently suing (on behalf of landowners) the village of Sidney, NY (Delaware County) over a ban they passed in February 2013 (Exclusive: Sidney, NY Sued by Landowners over Fracking Moratorium).

HHK is also the law firm that sued the City of Binghamton, NY over their illegal frack moratorium and won (see NY Judge Throws Out Binghamton Fracking Moratorium). HHK knows the law, knows the Constitution, and is well-equipped to write about when bans do, and do not, violate the Constitution…
Read More “When Do/Don’t Municipal Frack Bans Violate the U.S. Constitution?”
Chesapeake Energy | Energy Companies | Industrywide Issues | Ohio | Statewide OH | Utica Shale | Wastewater

How Much Wastewater Does Chesapeake Recycle in the Utica Shale?
October 17, 2013October 17, 2013

According to a story from top notch reporter Bob Downing at the Akron Beacon Journal, Chesapeake Energy is being a bit cagey about how much fracking wastewater they actually recycle in their Utica Shale drilling operation. Chesapeake is the #1 driller in the OH Utica Shale. How much they actually recycle is important.

In previous statements Chesapeake has said they are recycling 88% of their Utica Shale wastewater. Is that accurate? And where are they recycling all of their wastewater? Inquiring minds want to know…
Read More “How Much Wastewater Does Chesapeake Recycle in the Utica Shale?”
Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Marcellus Credited with 90% of New Jobs in PA 2005-2012
October 17, 2013October 17, 2013

Does Marcellus Shale drilling generate real jobs? You bet it does. Try this statistic on for size: Of all the new jobs created in Pennsylvania from 2005-2012, 90% of them were created by the drilling industry. No, that’s not a misprint. Those numbers come from analysts at Raymond James, a highly respected financial services firm. In addition, new hires in core Marcellus Shale industries were up 35% in the second quarter of 2013 compared to the second quarter of 2010. As one RJ analyst said, “unconventional oil and gas is not just a flash in the pan.” It will be a job-creating engine for decades to come.

When someone tells you drilling doesn’t create jobs, tell them to go fly a kite…
Read More “Marcellus Credited with 90% of New Jobs in PA 2005-2012”
Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing
October 16, 2013October 16, 2013

Will the northeast ever get an ethane cracker plant to handle the massive amount of ethane being produced in wet gas areas of western PA, eastern OH and the panhandle of WV? Some people think so (MDN among them), although each year that goes by without a cracker it seems less likely because of new ethane and NGL pipelines being built to haul ethane out of the northeast. Still, people “in the know” say they have a feeling. Kind of reminds us of the old BJ Thomas song, “Hooked on a Feeling.”

Yesterday at the Wheeling (WV) Economic Outlook Conference, Don Rigby, executive director of the Wheeling-based Regional Economic Development Partnership, was the latest “in the know” person to say he’s hooked a cracker feeling…
Read More “I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing”
Blue Racer Midstream | CNX Resources | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines

CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream
October 16, 2013October 16, 2013

CONSOL Energy issued an extensive operations update yesterday, for the quarter ending Sept. 30. The company says they sold more natural gas (and coal) than they had expected to during the quarter. They also said they have just signed an agreement with Blue Racer Midstream to ramp up infrastructure buildout for CONSOL’s drilling in Ohio’s wet gas area–specifically in Noble County, OH.

During 3Q13 CONSOL drilled 15 horizontal wells–12 of them targeting the Marcellus Shale, 3 of them in the Utica Shale. Here’s everything you ever wanted to know about CONSOL’s northeast drilling for 3Q13…
Read More “CONSOL’s Excellent Q3 Results, New Deal with Blue Racer Midstream”
Butler County | Crime | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Washington County

2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme
October 16, 2013October 16, 2013

A month ago MDN told you that one of two landmen accused of stealing mineral rights from unsuspecting landowners by forging signatures and using fake companies had plead guilty (see PA Landman Pleads Guilty to Defrauding Landowners, Off to Jail). His name is William Ray and he’ll not only do three years in the big house, he’ll also pay back over a half million dollars of what he stole.

At the time, Ray’s partner in crime (and the mastermind behind the scheme), Derek Candelore, plead not guilty. Yesterday Candelore plead guilty to one charge of mail fraud…
Read More “2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme”