Industrywide Issues

Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

Pipelines the New Battle Against Fracking in the Northeast
February 8, 2016February 8, 2016

The latest focus of the war, and it IS a war, over the use of fossil fuels, focuses on pipelines. Anti-fossil fuel radicals admit their hatred of fossil fuels is driving them to try and (1) delay and (2) deny permits for pipelines to get built. Particularly in the northeast. Emboldened by their success in pressuring Barack Hussein Obama to deny a permit for the Keystone XL pipeline, antis in the northeast are working overtime to try and scuttle a number of natural gas pipeline projects. One of their favorite targets is the Federal Energy Regulatory Commission. Antis are slowing down regulatory approvals by filing thousands of comments, registering as “intervenors,” and by targeting FERC itself, encouraging investigations into the agency. Typical bullying behavior that we’ve come to expect from them. The fossil fuel haters strategy is laid out in the pages of the Washington Examiner…
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Air Quality | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Statewide WV | West Virginia

29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP
February 8, 2016February 8, 2016

On January 26, 2016, 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of President Obama’s Clean Power Plan (CPP). A week before the D.C. Circuit Court of Appeals denied such a stay, so the states are taking it to the final authority in such matters. The states are begging the court for a stay because the CPP will do “irreparable harm” if it is allowed to be implemented by the dictatorial Obama Administration. For background on how this horrible plan will damage natural gas and our economy in general, see 9 Fatal Flaws with Obama EPA Clean Power Plan. Energy law firm Baker Hostetler LLP is the law firm of record for the State of Oklahoma and Oklahoma Department of Environmental Quality in this case. Below is an update from Baker Hostetler on the Supreme Court filing…
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Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Shell

Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant
February 5, 2016February 5, 2016

MDN received an exclusive tip from a trusted source (who is also an MDN subscriber) yesterday about the Shell ethane cracker plant in Monaca (Beaver County), PA. Our source, who lives in Beaver County, told us he was approached by a Shell landman about signing a pipeline right-of-way through his property to build a pipeline to the plant. We have an account of our source’s conversation with the landman, and some key information the landman let slip about Shell’s plans for two such pipelines…
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Energy Companies | EQT Corp | Industrywide Issues | Pennsylvania | Taxation | Washington County

EQT 20-Well Pad on the Way in Washington County, PA? Maybe!
February 5, 2016February 5, 2016

A recent meeting of the Nottingham Township (Washington County), PA Board of Supervisors proved to be a font of useful information about Marcellus drilling in the town, both past and future. Nottingham currently has three drilling sites, two of which are already active and one future. The two active sites have 11 and 12 wells either drilled or planned to be drilled. According to a local fractivist, the third site, which is planned by EQT, will have 20 wells on it. EQT says the eventual number of wells has not yet been determined (but they didn’t rule out 20 wells). Nottingham shares a border with Peters Township. Peters, you may recall, was one of the seven selfish townships that sued to overturn portions of the Act 13 law dealing with local zoning of oil and gas projects, eventually winning at the PA Supreme Court level (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). Nottingham has active drilling within its borders. Peters has still not allowed any drilling within its borders. Nottingham got $70,000 in impact fee money last year. Peters got $360,000 in impact fee money. What’s up with that?…
Read More “EQT 20-Well Pad on the Way in Washington County, PA? Maybe!”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Susquehanna County | Williams

Maple Syrup Farm in Path of PA Pipeline, Antis Make Most of It
February 5, 2016February 5, 2016

We’ve often said that pipelines should not be allowed to use eminent domain. But what about when there’s no other choice? What if there are one or two holdout landowners whose land over which a pipeline must travel if it is to get built at all? In those cases, pipeline companies are left with no other choice but to invoke eminent domain. Williams, in planning and now beginning to build the Constitution Pipeline from Susquehanna County, PA into New York to Schoharie County, NY, has bent over backwards, forwards, and sideways to accommodate landowners along the proposed route. In fact Williams has changed more than half of the route in response to requests from landowners. Williams is, today (Feb. 5), beginning to selectively cut down trees along the route–in Pennsylvania for now (New York is next). There’s one small portion of the route Williams wanted to avoid but could not–running through a stand of maple trees. The owners of those trees have aligned themselves with some of the most radical of radical anti-drillers to oppose the pipeline and they are now running a public relations campaign to attempt to try and create a public uproar. We at MDN do NOT sympathize with them–for a number of reasons…
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Accidents | Belmont County | Industrywide Issues | Marshall County | Ohio | Trucking | West Virginia | Wetzel County

3 Marcellus/Utica Truck Accidents in Ohio Valley – in Past 7 Days
February 5, 2016February 5, 2016

With Marcellus and Utica Shale drilling comes truck traffic–a lot of truck traffic. Which is great if you’re a driver who needs work, or a trucking company who wants to chase the business. But not so great if you live in the area where trucks are jamming up the roadways. Another downside to the truck traffic is the occasional accident. In the past week there have been three truck accidents in the Ohio Valley area–in Wetzel and Marshall counties in WV, and Belmont Count in OH. Two of the three required a hazmat team to deploy. Here’s the details…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Did Deerfield, MA Just Threaten Citizens Who Want Pipeline?
February 5, 2016February 5, 2016

Deerfield, MA seems to be inhabited (infested?) with radical anti-fossil fuelers who get the creepy crawlies when they think about a pipeline being buried in the ground–even though miles of pipelines are already in the ground under their feet right now and have been for decades. The Deerfield town health board, in the past, has claimed “unlimited power” to stop Kinder Morgan’s proposed Northeast Energy Direct (NED) pipeline (see MA Town Health Board Claims “Unlimited Power” to Stop TGP). The town tried to get Kinder Morgan to sue them over the pipeline (see Deerfield, MA Hoping Kinder Morgan Sues Them over Pipeline “Ban”). When that didn’t work, Deerfield tried to sue the Federal Energy Regulatory Commission (see Mass. Town Sues FERC to Stop Pipeline Claiming Gas is for Export). When that didn’t work, the town filed a second lawsuit against the federal government (see Deerfield’s 2nd Bite at the Litigation Apple Against NED Pipeline). Now the town is claiming its police force will stop surveyors from entering a property–even if those surveyors have permission from the state–if the landowner doesn’t want them there. Deerfield is on very thin ice and about to fall through. But what if a resident wants to allow a surveyor and wants the pipeline? “Deerfield residents who choose to grant Kinder Morgan access to their private property do so at their own risk, according to the town.” Is that a not-so-veiled threat, from the town against it’s own citizens?…
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Commodity Price | Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

WVONGA’s Corky DeMarco Comments on Need for Forced Pooling in WV
February 5, 2016February 5, 2016

The West Virginia Press Association hosted their annual Legislative Breakfast yesterday in Charleston. A number of speakers addressed the group to discuss a range of issues. One of those speakers was Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association. Corky talked about how long the oil and gas industry will be around in WV (“a thousand years”) and about why the price of oil and gas is so low today (“we’ve kind of priced ourselves out of the market”). He also spoke about the need for forced pooling legislation…
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Economic Impact | Industrywide Issues | Marion County | Supply Chain | West Virginia

WV Oilfield Services Co. Extreme Plastics Files for Bankruptcy
February 5, 2016February 5, 2016

Extreme Plastics Plus, Inc. is an oilfield services contractor that provides environmental lining services for oilfield and other commercial markets. The company offers above ground water containment, environmental lining, steel wall secondary containment, and rig mat services. The company’s environmental lining services include freshwater impoundments, double lined with a leak detection system, wastewater impoundments, primary and secondary lining, and rig pads. Extreme Plastics Plus was founded in 2007 and is based in Fairmont, West Virginia with other offices in eastern Ohio, northeastern Pennsylvania, Texas and Oklahoma. Other names used by the company are Three Amigos Rentals and American Well Services. On January 31, Extreme Plastics Plus filed for bankruptcy protection…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”
February 4, 2016February 4, 2016

Yesterday the Pennsylvania Environmental Quality Board (EQB) approved “sweeping” new changes to the regulations governing oil and gas drilling in the state (for a copy of what was passed, see PA DEP Issues “Final” New Drilling Regulations; Industry Pushback). In the end the vote came down 15-4 to pass the onerous new regulations which, according to the Marcellus Shale Coalition, will cost the industry $2 billion per year without any corresponding safety improvements for the general public. The interesting thing is that two advisory boards appointed by Gov. Wolf and Dept. of Environmental Protection PennFuture Secretary John Quigley–the Conventional Oil and Gas Advisory Committee and the Technical Advisory Board (for unconventional)–came out against the new regulations. What does that tell you? A previous version of the new regs was ready to go at the end of 2014 and then Gov. Wolf won election, installed a radical environmentalist to run the DEP (Quigley) and promptly changed the rules to damage to the drilling industry–both conventional and unconventional. These new regs are the result. The Pennsylvania Independent Oil & Gas Association (PIOGA) minces no words by saying, “The four-year process of developing these regulations has been an exercise in deception, misinformation and disregard of the law by the Department of Environmental Protection that escalated under Gov. Wolf.” Below is a look at the sausage making behind the new rules, and industry’s response…
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Fayette County | Industrywide Issues | Litigation | Regulation | Wastewater | West Virginia

Big Green Groups Funding Fayette County, WV Ban Lawsuit
February 4, 2016February 4, 2016

The people behind Big Green groups are nasty people. They are, according to one source we have communicated with, “terrorizing” legitimate oil and gas businesses in Fayette County, WV. We’ve highlighted the ongoing story of three liberal Democrat county commissioners who decided to ban not only injection wells, but over 500 conventional oil and gas wells currently operating in Fayette County, WV (see Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells). The ban was intentionally written so broadly (by Big Green groups assisting the county) it not only bans injection wells, like those operated by Danny Web Construction and EQT, but it will also ban currently operational oil and gas wells. It is an outrageous offense and “taking” of private property, violating the Fifth Amendment of the Constitution. EQT and Danny Web have sued the county and a federal judge slapped an injunction on the county’s ban (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). You can add another outrage to the situation. The county will be represented in the lawsuit against them by several Big Green groups, groups with deep pockets and armies of lawyers, for FREE. It is a clear conflict of interest and should not be allowed. Members of these groups are responsible for falsely calling in claims of spills that never happened, making false claims alleging toxins in streams that don’t exist, etc. These groups have perpetuated smear campaigns against legitimate o&g businesses–ruining reputations. And now they will be allowed to use their enormous financial resources to defend the county in this lawsuit? Sick…
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CNX Resources | CONSOL Energy | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania | Sand/Proppant

Ceramic Beads Used to Drill CONSOL’s Monster PA Utica Well
February 4, 2016February 4, 2016

On Monday MDN told you about CONSOL Energy’s newest Utica Shale well, a gusher with initial production of an eye-popping 61.9 million cubic feet per day per day (see CONSOL 4Q15: All About that Utica, ‘Bout that Utica, No Marcellus). The well, the GH 9, was drilled not in Ohio, but in Greene County, PA. Drillers always wonder what techniques and technologies were used in drilling such a well. How long are the laterals? What kind of choke is used? How much sand per foot? Etc. We have one bit of detail to share. Apparently CONSOL is cool with CARBO Ceramics telling the world that the GH 9 used CARBO ceramic beads in place of sand as the proppant. Here’s the details from CARBO for exactly what was used as the proppant in the GH 9…
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Energy Services | Industrywide Issues | Pipelines | Rockies Express Pipeline

New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas
February 4, 2016February 4, 2016

An exciting new market for Marcellus and Utica Shale gas may open up in the next 2-3 years in the Midwest. On a quarterly analyst conference call yesterday, Laclede Group (St. Louis-based natural gas utility) said they plan to build a 60-mile pipeline from St. Louis through southwest Illinois and connect to the Rockies Express (REX) and Panhandle Eastern Pipeline (see the map below). That will bring low-cost Marcellus and Utica Shale gas to the utility, not only for resale to gas customers, but also potentially for new natgas-powered electric plants planned to replace retiring coal-fired plants. The project will cost $170-$200 million and take 2-3 years to complete, according to Laclede CEO Suzanne Sitherwood…
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Energy Services | Industrywide Issues | Marathon Petroleum | MarkWest Energy | Processing Plants

MarkWest Completed 3 Processing Plants in ’15, 5 More Coming in ’16
February 4, 2016February 4, 2016

MarkWest Energy, now a subsidiary of Marathon Petroleum, reported its fourth quarter and full year 2015 results yesterday. Net income–revenue less expenses–was down for MarkWest in 2015, but at least the company is still in the black. MarkWest had $178 million in net income for 2014, and $157 million for 2015. Not too shabby considering the disastrous results many other companies have had. Net income for 4Q15 for MarkWest was a paltry $18 million, vs. $37 million in 4Q14. Among the operational highlights for MarkWest for 2015: The company commenced operation of one processing plant and two fractionation facilities in the Marcellus shale, increasing their total processing capacity by 200 million cubic feet per day and fractionation capacity by 73,000 barrels per day. Looking ahead to 2016, MarkWest says they have 10 major processing and fractionation projects currently under construction on a just-in-time basis, with five of the 10 expected to be completed in 2016. They expect to spend $1-$1.5 billion on capital expenditures in 2016. Here’s the update…
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Industrywide Issues | M&A | Supply Chain

2 Pipe Companies with Offices in Marcellus/Utica Merging
February 4, 2016February 4, 2016

Two oil country tubular goods (OCTG) companies, both with operations in the Marcellus/Utica, have announced they will merge. Bourland and Leverich Supply and Pipeco Services will merge to become B&L Pipeco Services. Both companies are subsidiaries of the Japan-based Sumitomo Corporation–one of the world’s largest general trading companies, owning some 800 companies with 70,000 people working for them. What the heck are oil country tubular goods (OCTG)? Pipe and tube products used in drilling–including drill pipe, pipe casings and oil/gas pipes. It certainly makes sense for two different companies in the same business with the same parent to combine…
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Anti-Drilling/Fossil Fuel | Education | Industrywide Issues | New York | Tompkins County

Cornell University Rejects Fossil Fuel Divestment Scam
February 4, 2016February 4, 2016

Cornell University is home to some real loons–like Tony Ingraffea and Robert Howarth, who try to claim using natural gas is worse for the environment than burning coal (see New Cornell University Study Says Shale Gas Extraction Worse for Global Warming Than Coal). Their research has been debunked numerous times (see Howarth, Ingraffea Shale Gas Study on Global Warming Discredited by U.S. Department of Energy). But then there are some real scientists and professors at Cornell, like Lawrence M. Cathles, Larry Brown, and Andrew Hunter (see New Cornell Study Says Coal is Not Cleaner than Natural Gas). Over the years we’ve despaired that Cornell would ever pull its collective head out of its…asphalt. But then none other than the Cornell Board of Trustees does us proud. There has been a great deal of pressure from spoiled, rich, white kids to force the universities they attend to divest from fossil fuels. This is true for Cornell as well. The Cornell Board of Trustees has just voted NOT to divest their considerable endowment funds from companies that produce fossil fuels. Kudos to Cornell!…
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