Western Midstream Deal to Sell Marcellus Gathering Systems Share
Two days ago, MDN told you about the rumor that Occidental Petroleum is considering a sale of its majority share in Western Midstream Partners for $20 billion, looking to work down a big pile of debt (see Sources: Occidental Looking to Sell Its Share of Western Midstream). That post was mainly about the dispute over whether Oxy can actually “sell” the Western Midstream company as it is a standalone company. However, our interest is in one of the smaller assets part of Western’s portfolio, three gathering systems in Central PA.
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According to sources whispering to reporters from Reuters, Occidental Petroleum is “exploring a sale of Western Midstream Partners,” a U.S. natural gas-focused pipeline operator that has a market value of close to $20 billion. Western Midstream responded to the news report by issuing a press release to say it is NOT engaged in any kind of sale process. But that’s a bit disingenuous as Occidental owns a controlling interest in the company. So if Oxy sells its interests, it is, in essence, selling the business.
There were 20 new permits issued to drill in the Marcellus/Utica during the week of Jan. 29 – Feb. 4, versus 27 permits issued during the prior week. Pennsylvania issued 12 new permits last week. Ohio issued 6 new permits. West Virginia issued 2 new permits last week. We had a tie for the company receiving the most permits. Seneca Resources received 4 permits to drill in Tioga County, PA, and Ascent Resources received 4 permits to drill in Harrison County, OH.
Earlier this week, Pennsylvania State Senator Katie Muth, a virulent anti-shale hater from the Philadelphia suburbs, held a press conference with a so-called investigative reporter from the Public Herald and two former employees from the Eureka Resources’ Williamsport frack wastewater treatment facility. The employees and reporter leveled some extremely serious accusations about the safety and working conditions at the facility. Exposure to toxic substances and even to low-level radiation is alleged. Four former workers sent a letter to the Lycoming County District Attorney asking him to launch a criminal misconduct investigation.
An undetermined amount of fracking wastewater spilled at the Eureka Resources wastewater recycling facility in Williamsport (Lycoming County), PA, at about 9:10 a.m. yesterday. The incident prompted a response by city firefighters and police. The water came from a valve on a tank inside the facility, where oil, chemicals and other substances are removed from fracking wastewater. Contrary to initial reports, nobody (no employees nor first responders) was injured or became ill from the spill.
In June 2015, MDN told you about a cool plan by a Pennsylvania company to establish a CNG (compressed natural gas) terminal in Lycoming County, PA, as a way to get natural gas to manufacturers, fleets, and businesses where no pipeline infrastructure now exists (see 
In August, the Executive Director of the Susquehanna River Basin Commission (SRBC) approved 34 water-use permits for individual shale gas well drilling pads in Bradford, Lycoming, Sullivan, Susquehanna, and Tioga counties. We’re just learning of the action via an official notice published in the Sept. 23 edition of the Pennsylvania Bulletin. The approvals, which are NOT subject to public review according to SRBC regulations, are general water permits. Each site will be required to receive a specific water withdrawal approval at a later date.