| | | | | | | | | |

Noble Energy and CONSOL to Partner on Marcellus in $3.4B Deal

handshakeIn March 2010, CONSOL Energy (Cecil, PA) paid Dominion Resources $3.5 billion for 500,000 acres of Marcellus Shale gas leases, instantly tripling their lease holdings. Since that time, CONSOL has continued to invest in Marcellus acreage and they now have 750,000 acres under lease. But CONSOL had a problem: Not enough money to develop their vast Marcellus acreage. So they did what is now a common practice—they found a partner to invest. Yesterday, CONSOL and Noble Energy (Houston, TX) announced that Noble will buy a 50 percent interest in 663,350 net undeveloped acres and fund drilling and completion costs in a deal worth $3.4 billion over an eight-year period.

The joint venture will concentrate on ramping up development of Marcellus Shale gas wells in three areas of Pennsylvania and West Virginia (see a map of CONSOL’s acreage below):

Read More “Noble Energy and CONSOL to Partner on Marcellus in $3.4B Deal”

| | | | | | | | |

Marcellus Shale Drilling May Provide a Solution to Coal Mine Water Runoff Problem

Pennsylvania has a decades old problem with abandoned coal mines. The mines fill with rain water. The water becomes highly acidic and contains dissolved metals such as iron, aluminum and manganese. The water then runs off into waterways and is responsible for thousands of miles of streams that are uninhabitable for wildlife and not suitable for human use. Marcellus Shale gas drilling may provide at least a partial solution to the problem.

Read More “Marcellus Shale Drilling May Provide a Solution to Coal Mine Water Runoff Problem”

| | | | | | | | | | | | |

PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water

There are 15 (of an original 27) municipal sewage treatment plants in Pennsylvania that still accept Marcellus Shale drilling wastewater. That is, until May 19 of this year.

Read More “PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water”

| | | | |

PA Marcellus Wastewater Treatment Plant Threatens Lawsuit Against Pitt Researcher

University of Pittsburgh researcher Conrad “Dan” Volz is resigning in May as director of Pitt’s Center for Healthy Environments and Communities because of his “philosophical differences” with the university over the issue of Marcellus Shale drilling. Volz has been a visible and loud voice against drilling, and that does not sit well at Pitt.

Volz released a report on March 23, subsequently revised and reissued two days ago, critical of the Pennsylvania Brine Treatment plant near Black Lick, in Indiana County, PA. The plant treats and releases Marcellus Shale wastewater into the Blacklick Creek. In the report, Volz recommends the plant’s operations be halted.

Read More “PA Marcellus Wastewater Treatment Plant Threatens Lawsuit Against Pitt Researcher”

| | | | | | | | | |

Atlas Energy/Reliance Industries Pay $192 Million for Leases on 42K Acres in PA Marcellus Shale

The recently announced joint venture between Atlas Energy and Indian energy giant Reliance Industries (a deal worth $3.5 billion over 10 years) is already bearing fruit. Together they’ve just forked over $192 million to secure leases for more land in Pennsylvania.

Independent oil and gas company Atlas Energy will buy 42,344 acres in the gas-rich Marcellus shale along with Reliance Industries Ltd (RIL), weeks after the two announced a joint venture.

The companies will buy the acreage in Fayette, Washington, Indiana, Westmoreland, Armstrong and Clarion Counties of Pennsylvania at an average price of $4,532 per acre.

Following Wednesday’s deal, the Atlas-RIL joint venture will control about 343,000 Marcellus Shale acres, of which about 206,000 acres are net to Atlas.*

According to the Atlas Energy website:

Substantially all of the acreage to be acquired is held by production and is either contiguous with the joint venture’s existing acreage or is in concentrated blocks of acreage. [Atlas] believes that it will be able to drill over 450 horizontal wells on this acquired acreage assuming 1,000 foot spacing between lateral wells.**

*Hindustan Times/Reuters (Apr 22) – Atlas, RIL to buy more shale acreage for $4,532 per acre

**Atlas Energy Press Release (Apr 21) – Atlas Energy, Inc. and Reliance Industries Jointly Acquire over 42,000 Additional Acres within Their Core Marcellus Shale Position