Industrywide Issues

Dominion Energy | Energy Companies | Energy Services | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale

Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market
August 8, 2013August 8, 2013

Straight off a conference call yesterday comes the news that Gulfport Energy has just signed a 10-year contract with Dominion Transmission to transport the natural gas Gulfport produces in the Ohio Utica Shale to the Midwest–using Dominion’s pipelines. The agreement is to ship 100 million cubic feet per day of gas (100 Mmcf/d), ramping up to 150 Mmcf/d by late 2014. Gulfport’s CEO James Palm made the announcement yesterday.

Palm also said on the conference call that Gulfport continues to lease acreage in Ohio and plans to drill “at least” 70 new wells next year in the Utica. More from yesterday’s call:
Read More “Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market”
Anti-Drilling/Fossil Fuel | Guest Post | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

What if PA Dems Win the Next Election and Ban Drilling Statewide?
August 8, 2013August 8, 2013

MDN reader, friend and contributor Chris Acker provides the insightful commentary below in response to (and building on) our article of a few days ago, titled: 18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium.

Chris delves into the economic apocalypse that would happen should PA Democrats gain power again in the next election and fulfill their promise of enacting a statewide moratorium/ban on drilling. It is, as Chris points out, a true nightmare scenario:
Read More “What if PA Dems Win the Next Election and Ban Drilling Statewide?”
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Research | Susquehanna County

At What Mmcf Price Do Shale Drillers Make Money?
August 8, 2013August 8, 2013

Ken Medlock, senior director of Rice University’s Baker Institute Center for Energy Studies and a team of Rice researchers recently performed a study of shale drilling economics. One of the questions they looked at: At what price per million cubic feet (or Mmcf) must a driller sell the gas in order to at least break even and not lose money? They have some interesting findings…
Read More “At What Mmcf Price Do Shale Drillers Make Money?”
Anti-Drilling/Fossil Fuel | Boardwalk Pipeline Partners | Energy Services | Industrywide Issues | Pipelines | Williams

Bluegrass NGL Pipeline Encounters Resistance from Some in KY
August 8, 2013August 8, 2013

The Bluegrass natural gas liquids (NGL) pipeline, announced in March 2013, will run from the Marcellus/Utica region southwest all the way to the Gulf Coast in Louisiana (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). The pipeline’s route will take it through Kentucky, where it will connect to Boardwalk’s Texas Gas Transmission, LLC system (Texas Gas) in Hardinsburg, KY. From Hardinsburg, the existing natgas Texas Gas pipeline will be converted to run NGLs. The entire project is slated to be up and running by late 2015.

However, some residents in KY are objecting to the pipeline. Do they have any valid points?…
Read More “Bluegrass NGL Pipeline Encounters Resistance from Some in KY”
Energy Companies | Industrywide Issues | NG Vehicles | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

Range Rolls Out New Fleet of CNG Trucks in SW PA
August 8, 2013August 8, 2013

Range Resources is practicing what it preaches–or rather consuming what it produces. Yesterday at a ceremony at Range’s regional HQ in Southpointe (near Pittsburgh), the company showed off a new fleet of Dodge and Chevy pickup trucks that run on compressed natural gas (CNG). With the new trucks added, Range now operates 100 of them out of their Southpointe operation. With CNG prices running at the gasoline equivalent of around $2 per gallon, Range says the trucks will pay for themselves within two years due to the low price of using CNG.

According to the PA Dept. of Environmental Protection, by the end of this year there will be 100 CNG fueling stations across PA. More and more Pennsylvanians are interested in converting to CNG vehicles…
Read More “Range Rolls Out New Fleet of CNG Trucks in SW PA”
Broome County | Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY | Tioga County (NY)

Chesapeake Energy Throws in the Towel on NY Shale Drilling
August 7, 2013August 7, 2013

A good news/bad news story. The good news is that Chesapeake Energy is giving up the legal fight with landowners in New York to extend their leases beyond the original lease term. MDN has long chronicled the fight on the part of landowners to stop Chesapeake from claiming force majeure to extend leases signed for (in some cases) just a few dollars per acre–leases signed long before horizontal drilling and fracking were contemplated (see More on the NY Force Majeure Ruling Against Chesapeake). After two years of legal wrangling, Chesapeake is throwing in the towel. Landowners will now be able to sign with another company, if drilling ever comes to NY.

The bad news is, Chesapeake is throwing in the towel–as in they are giving up on NY–tired of the ongoing five-year moratorium in shale drilling. Wake up Cuomo! Your actions have caused this! You are causing direct economic harm to your residents every day the moratorium stays in place…
Read More “Chesapeake Energy Throws in the Towel on NY Shale Drilling”
Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Washington County

Washington County, PA Judge Continues Anti-Drilling Decisions
August 7, 2013

What if a county judge’s wife was an anti-drilling activist–so motivated by her fervor she knocks on area residents’ doors to ask for their signature on petitions to ban drilling. Do you think that might affect the objectivity of said judge? And what if that judge repeatedly rules against gas drillers in case after case? Do you think that might be evidence that said judge is not capable of setting aside his own bias? Yeah, we would think so too–and such is the case with Washington County, PA judge John DiSalle.

Earlier this year, Judge DiSalle blocked Range Resources from obtaining two permits to drill wells in Robinson Township (see Judge Refuses to Recuse Himself from Range v Robinson Twp Case). Judge DiSalle is back–this time on a different case. DiSalle is now refusing to allow Range and MarkWest Energy to build a compressor station in Cecil Township. See a trend here? Range and MarkWest are appealing DiSalle’s latest anti-drilling ruling to the PA Commonwealth Court…
Read More “Washington County, PA Judge Continues Anti-Drilling Decisions”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Range Resources Backpedals on Gag Order for Hallowich Children
August 7, 2013August 7, 2013

Last week MDN told you about the “final document” to be released in a previously sealed court case in Washington County, PA (see Last Document Released in Hallowich v Range $750K Settlement). The document was a transcript of a court hearing where the Hallowiches, their attorney and attorneys for Range and MarkWest discussed the non-disclosure “gag order” agreement being signed by the Hallowiches. The agreement binds the Hallowiches from ever talking publicly about the case for which they received a $750,000 settlement.

The funky part is, it appears the agreement signed by the Hallowich parents would also bind their children from ever talking about fracking and drilling in public too. Even the judge in the case admitted the agreement seemed to do just that, saying it would be “a law school question.” In a new twist in the case, lawyers for Range now say the gag order does not apply to the children, although previously they said it would apply and that they would “certainly” enforce it…
Read More “Range Resources Backpedals on Gag Order for Hallowich Children”
Carrizo Oil & Gas | Commodity Price | Energy Companies | Industrywide Issues

Carrizo Oil & Gas 2Q13: Scaling Back in the Marcellus…for Now
August 7, 2013August 7, 2013

Carrizo Oil & Gas is a Houston-based driller that concentrates on U.S. shale plays. They have active drilling operations in the Eagle Ford and Barnett (TX), the Niobrara (CO), and in both the Marcellus and Utica Shale region in the northeast (PA & OH). In reviewing today’s Carrizo 2Q13 update, it’s obvious the company has decided to scale back in the Marcellus/Utica for now, in favor of putting their effort into the other plays. Carrizo’s average daily gas production in the Marcellus decreased from 38 million cubic feet per day (Mmcf/d) in 1Q13 to 33.9 Mmcf/d in 2Q13. Why? They’ve “shut-in” a number of their wells in Wyoming County, PA, waiting for the price of Marcellus gas to go up before they sell more.

Gas prices in the very-productive Marcellus are typically some of the lowest in the country. More supply than demand at this point. For example, yesterday the average sale price for natural gas along pipelines in the northeast Marcellus was $1.89 Mmcf according to NGI’s Shale Daily. The average sale price for gas yesterday in the Barnett Shale was $3.36 Mmcf! You can see why Carrizo is cooling their heals in the Marcellus. Here’s the portion of today’s Carrizo update dealing with their drilling program in the Marcellus/Utica:
Read More “Carrizo Oil & Gas 2Q13: Scaling Back in the Marcellus…for Now”
Electrical Generation | Industrywide Issues | Lackawanna County | Pennsylvania

Marcellus Gas to Power Combined-Cycle Electricity Plant in NE PA
August 7, 2013August 7, 2013

A very interesting latest-and-greatest technology is slated to be used in an electricity generating power plant in Jessup Borough (Lackawanna County), PA. The project will use locally produced Marcellus Shale gas from northeastern PA to power a combined-cycle electricity plant. Here’s how combined-cycle technology works: In the first pass, natural gas is burned and the resulting combustion turns a big turbine to produce electricity. The hot exhaust from that process is captured to boil water, turning it to steam, and the steam turns a second turbine. Very efficient and far less polluting than other types of fuel.

More combined-cycle plants are planned for the greater Scranton-Wilkes-Barre area as well. As coal-fired plants continue to shut down due to strict new regulations from the federal EPA, something has to replace the lost power. Either that or turn off your smart phones and televisions. However, look for short-sighted nimby-types and anti-drillers to try and stop this bit of progress…
Read More “Marcellus Gas to Power Combined-Cycle Electricity Plant in NE PA”
Indiana County | Industrywide Issues | Pennsylvania | Regulation | Wastewater

PA Frack Wastewater Plant Closes, Loses Permit to Operate
August 7, 2013August 7, 2013

Although companies like GreenHunter Water can’t get enough fracking wastewater facilities online fast enough to meet demand from Marcellus and Utica drillers, it appears not everyone has the same level of success when it comes to operating such facilities. The PA Dept. of Environmental Protection (DEP) has pulled the operating permit for a frack wastewater treatment facility in Indiana County, PA. Seems the facility operated “sporadically” in July and August of last year before stopping operation in September. The owner, Aquatic Synthesis, ran into financial difficulties (i.e. bankruptcy).

Problem is, there’s still a million gallons of wastewater at the plant that need to be disposed of. Who will pay for that?…
Read More “PA Frack Wastewater Plant Closes, Loses Permit to Operate”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium
August 6, 2013

Well well, what do you know? There are 18 brave Democrats in Pennsylvania after all. MDN was (we think) the first and one of the only sources to tell you of the insanity of the PA Democrat Party who, at their most recent statewide meeting, voted to adopt an official plank in their party platform supporting an immediate and ongoing moratorium–essentially a ban–of all Marcellus Shale drilling in the state (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). The state and national media ignored the story, knowing how toxic such a stupid move will be for Democrats at the next election (got to protect the Dem hegemony ya know).

But, we’ve just learned that 18 brave elected Democrats from the PA House of Representatives, including House Minority leader Frank Dermody, wrote a letter on July 15 to the state committee telling them the frack moratorium vote in June is not kosher with them. To which we say, three cheers! Finally, some people with ~~balls~~ intestinal fortitude inside the PA Democrat Party…
Read More “18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium”
Accidents | Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Susquehanna County

EPA’s Dimock PowerPoint Revealed – But, is it Real?
August 6, 2013August 6, 2013

Apparently the Los Angeles Times has a friend in the radically left DeSmogBlog and so has shared the famed, single EPA PowerPoint presentation that supposedly blames drilling and fracking by Cabot Oil & Gas for methane in nearby water wells. DeSmogBlog has an “exclusive” copy of said PowerPoint, so we assume they got it from the LA Times. We grabbed a copy from the DeSmogBlog website and embedded it below so you can read it and evaluate it for yourself.

The most recent hubbub about Dimock arose when the LA Times trumpeted they have in their possession a never-before-seen secret/internal “report” from the EPA–which turns out to be a PowerPoint presentation–blaming Cabot’s fracking for water problems in Dimock, PA (see LA Times Attempts New Hatchet Job on Fracking in Dimock). Is this finally the smoking gun? Is the Obama EPA now covering up evidence against evil “big oil & gas”?…
Read More “EPA’s Dimock PowerPoint Revealed – But, is it Real?”
Industrywide Issues | Lease & Royalty Payments | Ohio | Pipelines | Statewide OH

Some OH Landowners Get “Take it or Leave it” Pipeline Offers
August 6, 2013August 6, 2013

Apparently, some heavy-handed tactics are being used by some (not all) landmen in Ohio who are telling property owners to “take it or leave it” when it comes to offers on the table to allow pipelines to cross their land. Landowners beware: a landman may tell you the company will run the pipeline anyway by using the power of eminent domain. Very few of the pipelines now being constructed in eastern Ohio right now have eminent domain power.

If you hear such a statement from a landman, ask to see a certificate from FERC or the Ohio Public Utilities Commission stating that particular pipeline has eminent domain authority. If they can’t produce such a certificate, you know they’re blowing smoke…
Read More “Some OH Landowners Get “Take it or Leave it” Pipeline Offers”
Hydraulic Fracturing | Industrywide Issues | Regulation

Hammer Falls: New EPA Edict on Storage Tanks Used in Drilling
August 6, 2013August 6, 2013

Day by day, a little more of the thing that once made America great–freedom and liberty–dies. Hey, no big deal. It’s all done in the name of health and safety. The latest example: The federal Environmental Protection Agency (EPA) has just issued more rules that trample individual states’ rights to regulate oil and gas drilling. It’s the EPA’s ongoing back-door method of one day fully regulating oil and gas drilling throughout the U.S.

The latest EPA rules have to do with oil and gas storage tanks and the emissions that come from them. Drillers and those operating such storage tanks have until either April 15, 2014 or April 15, 2015 (depending on when the tank went into service) to comply with new rules reducing volatile organic compound (VOC) emissions by 95%. The EPA’s latest edict:
Read More “Hammer Falls: New EPA Edict on Storage Tanks Used in Drilling”
Butler County | Energy Services | Industrywide Issues | Pennsylvania | Reserve Environmental Services | Wastewater

RES Breaks Ground for Wastewater Treatment Plant in Butler, PA
August 6, 2013August 6, 2013

Reserved Environmental Services, otherwise known as RES Water, is a Pennsylvania-based shale drilling wastewater treatment processor. RES’ claim to fame is that they build and operate zero liquid discharge facilities–100% of treated wastewater is returned to the field for re-use in fracking and drilling.

RES has just broken ground on its second wastewater treatment plant–in Penn Township (Butler County), PA. The new $2.5 million facility is projected to be operational later this year. According to RES president Andy Kicinski, more RES treatment plants are on the way in the Marcellus region…
Read More “RES Breaks Ground for Wastewater Treatment Plant in Butler, PA”