GreenHunter Resources 1Q15: Bets the Ranch on OH Injection Wells
A lot of news to report about GreenHunter Resources, the fresh water and wastewater subsidiary of Magnum Hunter Resources, focused totally on the Marcellus and Utica Shale region. On Friday GreenHunter released their first quarter 2015 update and held an earnings call with analysts. If we could sum it up in our own layman’s terms–we’d say GreenHunter is currently treading water (pun intended) as they wait to turn around their lack of revenue by bringing online a series of wastewater injection wells in both Ohio and West Virginia. Although GreenHunter’s COO Kirk Trosclair rightly pointed out the company has gotten much more efficient–driving down costs–there’s no papering over the fact that GreenHunter’s revenues for 1Q15 were down 39% from the same quarter in 2014 ($5.1 million in 1Q15 vs. $8.5 million in 1Q14). Which seems odd as GreenHunter’s CEO, Gary Evans, said that the company currently turns down 20 to 25,000 barrels a day of water that they can’t handle because they are currently “full.” GreenHunter currently has two operating injection wells at their Mills Hunter facility, located in Meigs County, OH and one injection well operating in Ritchie County, WV. By the end of June they plan to have six wells operating at the Mills facility and a second well at the Ritchie location…
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We finally have the final version of the Supplemental Generic Environmental Impact Statement (SGEIS) from the NY Dept. of Environmental Conservation (DEC). This is the document that would control where and how (and if) fracking is done in the Empire State. The Final SGEIS (or FSGEIS), a full copy embedded below, is more than 2,000 pages long. No, we’ve not yet read it. But what we do know is that if drillers can drill and frack a well using less than 300,000 gallons of water, it’s permitted under this FSGEIS. Is such a thing possible? Probably not–at least not economically. You won’t make any money, so it’s a moot point. The FSGEIS is not the final document that will be issued. The very last thing to come will be a “Findings statement” by DEC Commissioner (and anti-driller) Joe Martens. According to state law, Martens cannot issue the Findings statement before 10 days from issuing the FSGEIS. Martens knows he’s going to get his rear-end sued from now until he leaves office, so he’ll take his time before releasing the Findings statement, which will essentially say “we don’t have enough science to prove fracking doesn’t harm people or the environment, so the safe thing to do is disallow it for now.” The phraseology he uses will be scrutinized and will be the basis of what we predict is at least several, possibly many lawsuits. Pro-drillers are not going away. Our property rights have been unconstitutionally stripped away. We will fight until we win…
We have two big pieces of news to share with you today about the Cove Point, Maryland LNG export facility being built by Dominion. The first is that yesterday, after a years-long process, the Obama Dept. of Energy finally gave Dominion their final stamp of approval to build the facility. Last month we pointed out this last piece of the puzzle still had not fallen into place (see