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PA Republican Senator Hands Out $2M+ in Impact Fee Money

Being President Pro Tempore of the Pennsylvania State Senate has its privileges–like handing out $2,086,132 in grants for six energy, trail and water and sewer projects in your district–just two weeks before the election. Senator Joe Scarnati (R-Jefferson) announced awards yesterday to fund projects including $150K for a recreation trail in Elk County, nearly half a mil for a flood mitigation project in Senator’s home county of Jefferson, and $546K to buy some sort of biogas contraption for a pig farm in Tioga County (something that turns pig crap into electricity). All of these projects are funded by PA shale drillers through the Act 13 law and the impact fee collected…
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Hilcorp has 2 Accidents (in 3 Weeks) in Mercer County, PA

bad luckHilcorp is having some bad luck in Mercer County, PA. Three weeks ago two storage tanks at a Hilcorp well pad caught fire and exploded–no one injured. Then, this past Saturday (three weeks later), a separator caught fire at a well pad. No big explosions this time–at least none that were heard. However, up to 20 homes had to be evacuated while the fire was extinguished. Once again, no injuries…
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‘Noise Solutions’ for Drilling/Compressor Plants Locates in NWPA

Here’s a feel good supply chain story. A privately held Canadian company that in 1997 innovated a way to make industrial operations–like noisy compressor plants–quieter, wanted to build a manufacturing plant here in the U.S.–near the oil and gas industry that will use their innovative products. So where did Scott MacDonald, president and CEO of Noise Solutions, look? The northeast of course–Marcellus and Utica territory. He considered New York, but the taxes are way too high and the shale drilling non-existent. He also considered West Virginia and Ohio, which were good choices. But MacDonald settled on Sharon (Mercer County), PA as the new home for a plant that already employs 35 people and is on it’s way to employing 125 or more.

MacDonald and Noise Solutions will spend $5 million to renovate the former Winner International warehouse where the company chose to set up shop. That investment along with the ripple effect of full-time employees paying local and state taxes (and spending much of their paychecks in the local community) gives Sharon a big “economic stimulus” courtesy of this Canadian company. Here’s more about Noise Solutions and their new operation in Sharon, PA…
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Quieter Drilling, Compressor Plants on the Way in the Northeast

Noise Solutions Inc., headquartered in Alberta, Canada, makes buildings, walls and enclosures that keep the noise down. They like to say they make communities quieter, and they’ve been doing it since 1997. One of the primary markets for Noise Solutions is the oil and gas industry. They recently announced an expansion into the Marcellus and Utica Shale region, setting up a new facility in Sharon (Mercer County), PA. Noise Solutions has already hired 30 employees at the new facility with plans to have 125-200 employees hired in the next three years. This is great news for the Marcellus/Utica drilling industry and for Mercer County.

Noise Solutions’ recent announcement:
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Mercer County Landowners Suing Halcon Get Small Victory

Last fall Halcon Resources signed letters of intent with landowners in Mercer County, PA to lease some 60,000 acres for drilling, via CX Energy (Co-eXprise). In September 2012 Halcon called a meeting with landowners and told them they would only proceed with leasing about half of the acreage (see Halcon Says No Drilling for Half of Mercer County Landowners). Needless to say the half that were jilted didn’t take it well. In fact, they felt defrauded by Halcon and filed a class action lawsuit in federal court against Halcon.

The U.S. Court of Appeals Third Circuit has just passed the case (“remanded” it) back to a Pennsylvania trial court, which is a small victory for the landowners. How so? Well, it’s complicated, but we’ll do our best to explain it…
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Will Halcon Get So-So Results on OH Side of the Utica?

Although some analysts have given Halcón Resources a drubbing the past few weeks over lackluster production performance for some of their initial Utica Shale wells in Pennsylvania, that’s not slowing the company down. It’s full speed ahead of Halcón–especially in Trumbull County, OH where the first-ever Utica well for Trumbull was drilled (last year) by Halcón will soon go online. Crews are busy at work laying pipeline that will run from several Halcón wells in Trumbull…
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Halcon Resources Completes 2 Utica Shale Wells…in PA!

Halcon Resources, a driller headquartered in Houston, TX, is active in half a dozen different shale plays in the U.S., including the Utica Shale. The surprise part is that Halcon is drilling in the Utica in Pennsylvania as well as Ohio. Yes the Utica does underlay a large part of PA as well as eastern OH, but only a handful of Utica wells have been drilled in PA (from all drillers) because the prolific Marcellus Shale layer under PA has commanded the most attention.

Halcon’s CEO Floyd Wilson says the company has two rigs drilling in the Utica now, but it’s still very early days for “one of the most exciting unconventional resources plays in the lower 48.” Two of the eight wells they’ve spud (i.e. drilling) in the Utica are now completed—both of them in PA:

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Halcón Resources: Full Speed Ahead in Utica Shale for 2013

Houston-based Halcón Resources Corporation issued their fourth quarter and full year 2012 financials and operational update last week. As MDN has been reporting, Halcón is ramping up in the Utica Shale (see Location of Second Halcon Utica Well in Trumbull County, OH). Their 2012 update further confirms that they are making a big push in the Utica for 2013.

In the extract below discussing Halcón’s Utica plans for 2013, we learn they have 130,000 acres, plan to drill 20-25 new wells and will spend $200 million on their Utica drilling program for the year. Interestingly, both of their completed Utica wells are located in the Pennsylvania Utica—not in Ohio…

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Halcon Drills First Utica Well in Trumbull County, OH

One month ago Halcon Resources purchased Carrizo Oil & Gas’ northern Utica Shale acreage (15,000 acres) for $43 million (see this MDN story). Halcon is not letting any grass grow under their feet. They are already working on their first Utica Shale well—preparing the site—in Trumbull County, OH. When completed, it will be the first active Utica Shale well in the county:

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Mystery Buyer of Carrizo’s Northern Utica Acreage Revealed

Yesterday MDN reported that Carrizo Oil & Gas had sold off it’s interest in lease acreage in Ohio’s northern Utica Shale region for $43 million (see this MDN story). Carrizo did not identify the buyer, but the enterprising Youngstown Business Journal did.

Here’s who it is:

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Halcon Says No Drilling for Half of Mercer County Landowners

weakest linkAbout the half the landowners in Mercer County, Pennsylvania who signed leases with Halcon Resources (via CX Energy) to allow shale gas drilling on their property found out Monday night that Halcon is not exercising their lease options. The other half found out Halcon will go forward with drilling on their property.

What happened?

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Carrizo Gets Utica Permit for Trumbull County, OH

Carrizo Oil & Gas has just received a permit for drilling in the Utica Shale in Trumbull County, Ohio. But the company says it’s not going to start its exploratory drilling for the foreseeable future, at least in Trumbull because Trumbull has more restrictive road repair demands, so instead Carrizo will drill its first Utica exploratory well in neighboring Mercer County, PA where the demands on road repair are not as restrictive.

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