Industrywide Issues

Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | Marshall County | Processing Plants | Rex Energy | West Virginia

Natrium, WV Fractionation Plant Still Closed After Explosion/Fire
October 2, 2013October 2, 2013

As MDN previously reported, an explosion and fire was reported at the Blue Racer Midstream’s Natrium, WV natural gas processing plant early Saturday on Sept. 21 (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). It’s a week and a half later and the plant, which both processes or separates wet gas and further fractionates it into its component compounds remains closed while an investigation continues. WV officials and the plant’s owners (Blue Racer is owned by Dominion and Caiman Energy II) still don’t know what caused the explosion and fire.

Meanwhile, at least one Natrium customer has found an alternative source to process their wet gas…
Read More “Natrium, WV Fractionation Plant Still Closed After Explosion/Fire”
Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

WV Gov Going to Europe to Find Him a Cracker
October 2, 2013October 2, 2013

West Virginia Gov. Earl Ray Tomblin is nothing if not persistent. For several years, the governor and his trusty Commerce Secretary Keith Burdette have been talking about landing an ethane cracker plant for WV (see WV Gov. Tomblin Beats the Ethane Cracker Drum Once Again). MDN is pulling for them! We have been for a long time. And it seems every few months we see a story along the lines of, “Just hold on, it’s a comin'”. But it never seems to.

So if a cracker investment is not coming to WV, Gov. Tomblin is going out to find it! He’s heading off to Spain, France, Germany, Switzerland and Italy on a European ~~vacation~~ trade mission in October to thank those countries for investing in WV, and to invite them to invest more. In particular, he’d like someone to invest in a cracker plant…
Read More “WV Gov Going to Europe to Find Him a Cracker”
Chesapeake Energy | Columbiana County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

Salem, OH Votes Down Ordinance to Restrict Drilling in City
October 2, 2013October 2, 2013

In July 2012, the city of Salem, OH signed a lease with Chesapeake Energy to allow drilling on 381 acres of city-owned land (land outside city limits). Terms of the lease: $7,000 signing bonus and 20% royalties (see Salem, OH to Sign Lease Deal with Chesapeake for $7K+20%). It probably wouldn’t send the right signal to turn around and pass a law that would prevent drilling inside city limits after signing a lease and accepting millions of dollars. Yet, such a law was under serious consideration by Salem City Council.

Tuesday night, City Council wisely chose to vote down a proposed zoning amendment that would have prevented drilling inside city limits…
Read More “Salem, OH Votes Down Ordinance to Restrict Drilling in City”
Energy Companies | Hess | Industrywide Issues | Jefferson County (OH) | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

Hess Loses OH Court Case, May Owe Big Bucks to 300 Landowners
October 2, 2013October 2, 2013

Hess has just lost a court case in Ohio that may end up costing the company dearly. Hess had purchased leases in eastern Ohio from other companies. The original leases date to 2006-2008 and in many cases the landowners were paid as little as $10 per acre for a signing bonus–absolutely peanuts compared to today’s rates for $5K or more per acre. A Jefferson County landowner sued Hess to get out of his lease agreement because the company had not drilled on his property. Hess argued provisions in the lease let them extend the lease by paying a nominal extra fee.

Hess lost, and now will have to pay that landowner (and by extension around 300 other landowners) big re-signing bonuses or risk losing the land…
Read More “Hess Loses OH Court Case, May Owe Big Bucks to 300 Landowners”
Access Midstream Partners | Energy Companies | Energy Services | EV Energy Partners | Hilcorp Energy | Industrywide Issues | M3 Midstream | NGLs | NiSource | Pennant Midstream | Pipelines | Processing Plants | Utica East Ohio Midstream

NiSource & M3 Do a Deal to Process/Sell NGLs in Eastern Ohio
October 1, 2013October 1, 2013

An important announcement yesterday for drillers (and landowners) in the northern portion of the Ohio Utica Shale play: Pennant Midstream announced they are building a 38-mile natural gas liquids (NGL) pipeline from the Pennant-owned Hickory Bend cryogenic processing plant (in Mahoning County, OH) to the Utica East Ohio Midstream-owned Kensington cryogenic processing plant (in Columbiana County, OH). Pennant says initially they will ship 90,000 barrels per day through the new pipeline.

Why is Pennant with its own processing plant sending NGLs to another (competitor’s) processing plant? Good question…
Read More “NiSource & M3 Do a Deal to Process/Sell NGLs in Eastern Ohio”
Energy Services | Industrywide Issues | Pipelines | Regulation | Williams

Williams Asks FERC to Approve $610M Transco SE Pipeline Expansion
October 1, 2013October 1, 2013

Previously MDN told you that Williams was holding an “open season” to gauge interest in expanding capacity on their Transco pipeline system to carry cheap Marcellus and Utica Shale natural gas from the northeast to the southeast (see Open Season to Expand Transco Pipeline in PA Marcellus). Drillers didn’t waste any time and the project is now “fully subscribed”–meaning all of the new increased capacity is now spoken for. So yesterday, Williams made a formal application to the Federal Energy Regulatory Commission (FERC) to expand the Transco–a project they call the Leidy Southeast expansion project.

Williams plans to spend $610 million, which includes laying 30 miles of new pipeline and upgrading compressor plants along the way…
Read More “Williams Asks FERC to Approve $610M Transco SE Pipeline Expansion”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Pipelines | Statewide PA | Sunoco Logistics

A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly
September 30, 2013

Problem: How can Philadelphia benefit from cheap, abundant Marcellus Shale natural gas being produced in such large quantities in Pennsylvania that the state can’t use it all and is now a net exporter? Yes, as Drexel president John Fry said at Shale Insight last week, Philly can provide education and research to assist the shale revolution (see Shale Insight 2013: Final Wrap-Up, The Big Surprise). But aside from education and research, how can Philly realize the tangible benefits of low-cost shale gas? Answer: Install a big, fat pipeline into Philly to deliver cheap Marcellus Shale gas to residents and businesses that can use it.

New Problem: Where do you run a new pipeline in a densely populated city like Philly? New Answer: Under the Delaware River (?!?!)…
Read More “A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly”
Doddridge County | Energy Companies | EQT Corp | Industrywide Issues | Lease & Royalty Payments | Litigation | West Virginia

WV Landowner Tries to Stop Shale Drilling with New Water Wells
September 30, 2013September 30, 2013

Here’s a novel approach by a landowner to try and stop drilling on land already leased. A landowner in Doddridge County, WV didn’t like how he was being treated by driller EQT, so he drilled several water wells close to where EQT planned to drill Marcellus Shale gas wells on his property. In WV, you can’t drill within 250 feet of a water well–so the water wells effectively shut down drilling on his property.

Except… EQT is now suing the landowner for bad faith and intentionally trying to obstruct a signed contract. Based on the facts in the case, we expect EQT will prevail. Drilling the water wells was “cheating” to prevent drilling and ultimately to get out of the lease. Creative, perhaps–but misguided…
Read More “WV Landowner Tries to Stop Shale Drilling with New Water Wells”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Regulation | Statewide OH

OH Antis Force Change in Chemical Reporting, Everyone Less Safe
September 30, 2013September 30, 2013

Ohio’s anti-drillers, in their zeal to needle the drilling industry, have just put everyone who lives near active drill sites at more risk than they once were. Following state law, drillers (until now) have filed a list of the chemicals they store and use for fracking with the Ohio Department of Environmental Resources (ODNR). Local first responders–police and firefighters–could then electronically retrieve that information from the ODNR website for any given well if an incident occurred, like a fire. But anti-drillers asked the federal government to intervene and that has now happened. The feds have said drillers must file paperwork listing the chemicals stored and used directly with local counties and municipalities.

Now, firefighters will have to haul out a paper file from some filing cabinet and rifle through it if there’s any kind of emergency–instead of using the much faster online version from ODNR. Congratulations Ohio anti-drillers! You’ve just made everyone in Ohio more unsafe…
Read More “OH Antis Force Change in Chemical Reporting, Everyone Less Safe”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Washington County | Wastewater

Mt Pleasant Tells Range Resources “No Deal” on Water Impoundments
September 30, 2013September 30, 2013

An update of the ongoing kerfuffle between Range Resources and their four water impoundments (i.e. ponds) and Mt. Pleasant Township officials in Washington County, PA (for background, see Range Water Impoundment Public Hearing Postponed 2nd Time). Mt. Pleasant recently served Range with zoning violation notices for the four impoundments–they want them all closed. Range recently proposed a compromise that would allow them to keep three of the four impoundments open.

The town board of supervisors met and discussed Range’s proposal during a rare Saturday session–and said “no thanks” to the proposal…
Read More “Mt Pleasant Tells Range Resources “No Deal” on Water Impoundments”
Berks County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Spectra Energy

Spectra’s TEAM 2014 Pipeline Loops Coming to Berks County, PA
September 30, 2013September 30, 2013

Spectra Energy is in the midst of a multi-year $500 million project to expand its Texas Eastern pipeline in the northeast to boost capacity to bring Marcellus and Utica Shale gas to markets in the northeast, Midwest and south. The project, called the Texas Eastern Appalachia to Market Expansion 2014 (or “TEAM 2014”) involves upgrading existing compressor plants and building new “loops” of pipeline next to existing pipeline in southeastern Pennsylvania.

One of the counties where Spectra plans to build new looping pipeline is Berks County, where residents have until mid-October to make comments on (and support!) Spectra’s proposed TEAM 2014 plans…
Read More “Spectra’s TEAM 2014 Pipeline Loops Coming to Berks County, PA”
Accidents | Energy Services | Industrywide Issues | MarkWest Energy | Pipelines | West Virginia | Wetzel County

MarkWest Says NGL Pipeline in Wetzel County Repaired by Mid-Oct
September 30, 2013September 30, 2013

In August, a landslide in Wetzel County, WV hit a MarkWest natural gas liquids (NGL) pipeline that connects MarkWest Energy’s Mobley and Majorsville processing plants. The landslide caused the NGL pipeline to rupture, spilling NGLs onto the ground and into a local creek (see MarkWest Continues Cleanup at NGL Pipeline Spill in WV).

Last Friday, MarkWest provided the following update (below) which says they are working diligently to get the pipeline repaired and the Mobley facility operating again (which remains closed until the pipeline is working). Their current estimate for when the pipeline and Mobley will be back online? Mid-October…
Read More “MarkWest Says NGL Pipeline in Wetzel County Repaired by Mid-Oct”
Anti-Drilling/Fossil Fuel | Energy Services | Ethane | Industrywide Issues | Medina County | NGLs | Ohio | Pipelines | Sunoco Logistics

Handful of Medina, OH Anti-Drillers Oppose Ethane Pipeline
September 30, 2013September 30, 2013

A handful of residents in Medina, OH are opposing an update to a pumping station that sits on the Mariner West pipeline. Sunoco Logistics owns and operates the pipeline which they are converting to handle ethane, a natural gas liquid. The plan is to pipe ethane from the Marcellus and Utica Shale region all the way to Sarnia (Ontario), Canada to an ethane cracker plant located there.

Local anti-drillers in Medina don’t like fracking (even though it’s perfectly safe) so they’ve decided to focus on stopping the pipeline as a deterrent to more fracking…
Read More “Handful of Medina, OH Anti-Drillers Oppose Ethane Pipeline”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP’s O&G Division Gets High Marks from Independent Review
September 30, 2013September 30, 2013

An independent, third-party peer review organization–State Review of Oil and Natural Gas Environmental Regulations, Inc.–has given the Pennsylvania Dept. of Environmental Protection’s (DEP) Office of Oil and Gas Management a very close examination. What did they find? They found it to be “proficient” and “ready to address the increase in oil and gas operations in Pennsylvania.” The review gave the DEP high marks for the actions they’ve taken (and new regulations instituted) over the past two years under Gov. Tom Corbett.

DEP Acting Sec. Chris Abruzzo said this independent review proves that PA’s world class shale drilling is matched by world class oil and gas management and regulations…
Read More “PA DEP’s O&G Division Gets High Marks from Independent Review”
Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Ohio | Trucking | Utica Shale

Utica Shale Transfer Facility Gets Road Upgrade
September 30, 2013September 30, 2013

In February, MDN brought you the news that the Columbiana County Port Authority would spend nearly $1 million to improve a stretch of road leading to the Wellsville industrial park where Arrowhead Utica Pipelines, a Hilcorp subsidiary, is building a shale gas transfer facility (see Hilcorp Subsidiary Leases Property for Utica Transfer Facility). Looks like it won’t take anywhere near that much money to get the project done.

Last Friday the Port Authority voted to accept a bid and move forward to have the work done–at a cost of $526,000…
Read More “Utica Shale Transfer Facility Gets Road Upgrade”
Crude Oil | Economic Impact | Industrywide Issues | Jobs | NGLs | Ohio | Statewide OH | Utica Shale

U.S. Chamber’s Chris Guith Talks About Ohio Utica Shale
September 30, 2013September 30, 2013

Chris Guith is vice president for policy at the U.S. Chamber of Commerce’s Institute for 21st Century Energy. He’s also very familiar with the development of Ohio’s Utica Shale play. In a recent interview, Guith had some interesting comments on Ohio’s prospects for oil, NGL pipelines, industry jobs, regulations and more…
Read More “U.S. Chamber’s Chris Guith Talks About Ohio Utica Shale”