LOLA Energy is Back! Scoops Up Rice Acreage EQT Let Expire
LOLA Energy was birthed near the end of 2015, by former EQT executives using private equity money from Denham Capital (see New Marcellus/Utica Drilling Company is Born – LOLA Energy). In July 2017, Rice Energy (later sold to EQT) bought the assets of LOLA Energy for $180 million, over the objections of LOLA CEO Jim Crockard (see Rice Energy Paid $180M for LOLA Energy; CEO Didn’t Want to Sell). Like a phoenix rising from the ashes, LOLA Energy and Jim Crockard are back. The company has scooped up leases that EQT inadvertently let expire, potentially blocking EQT from drilling some already-planned-and-in-the-works wells–until EQT pays LOLA.
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A group of enviro-Nazis has sunk to a new low in their holy mission to block Marcellus Shale drilling. A group of colluding Big Green groups along with sympathetic (and sycophantic) “reporters” (i.e propagandists) from the Pittsburgh Post-Gazette are exploiting the pain and suffering of southwestern PA families of children who have cancer in their attempt to stop shale drilling. It’s disgusting and sick.
Energy Transfer continues to squabble with the Pennsylvania Dept. of Environmental Protection (DEP) over the fate of the still-closed Revolution Pipeline in western PA. In May the DEP issued an order to Energy Transfer, builder of Revolution, to “identify and restore or mitigate all streams and wetlands that it illegally eliminated or altered during the construction” of the pipeline (see
Pennsylvania antis from the Philadelphia area who don’t want pipelines running through their neighborhoods (NIMBY types) have beat the drums of war so loud and for so long, they’ve finally begun to intimidate the non-partisan, shouldn’t-be-intimated PA Public Utility Commission (PUC). The PUC last Thursday launched a “major review of its safety regulations for hazardous liquids pipelines” in response to pressure from Mariner East 2 pipeline foes. It’s sad to see a government body cowed by a few loudmouthed troublemakers.
A Pennsylvania landowner thought he could finagle extra payments from XTO Energy after his land was drilled under from a neighboring property. The landowner had signed a lease, and the lease contains language that says if XTO were to drill “on” his property (i.e. install a well pad) the landowner would receive an extra payment. The landowner sued saying “on” also means “under” when XTO drilled under his property. The Superior Court of Pennsylvania disagreed, saying “on” means “on the surface” and “under” does not mean “on”.
Yesterday the Pittsburgh Business Times broke the news that Range Resources, one of the Marcellus/Utica’s biggest drillers (and in fact the very first driller to sink a Marcellus well, back in 2004), has laid off 40 employees–roughly 5% of its workforce. The layoffs are split between the company’s Pennsylvania and Texas operations.
In mid-December there was an explosion at a MarkWest Energy natural gas processing plant in Chartiers (Washington County), PA, injuring four people (see
Shale driller Huntley & Huntley (H&H), headquartered in Monroeville (Allegheny County), PA, organized a private meeting last night in Plum, PA for “officials from local municipalities, the state Department of Environmental Protection and the oil and gas industry.” The meeting was an effort at good communication, so local officials know what is and is not allowed, and who regulates what, when it comes to shale drilling. Of course anti-drillers got wind of the meeting and pitched a fit until H&H opened up the meeting to let them attend.
In May MDN told you about a Pennsylvania Supreme Court decision that allows shale drilling to happen *anywhere* in a township, so long as such drilling satisfies standards to protect public health, safety and welfare (see
We had high hopes for Steve Tambini, former vice president of operations at Pennsylvania American Water, when he was appointed Executive Director of the Delaware River Basin Commission in 2014 (see
Two important pipeline projects, PennEast and Adelphia Gateway, are at various stages of approval. PennEast is a $1 billion (or $1.2 billion, depending on the source) new greenfield pipeline project from Luzerne County, PA to Mercer County, NJ. PennEast will flow PA Marcellus gas to markets in NJ. Adelphia Gateway is an old oil pipeline, already in the ground, that runs from Northampton County, PA through Bucks, Montgomery, and Chester counties, terminating in Delaware County at Marcus Hook. Adelphia will flow Marcellus gas to the Philadelphia region. PennEast was announced in 2014, and Adelphia in 2017. Neither has yet begun construction. What’s the status for each project?
President Trump is pushing members of his administration to work with state regulators in Appalachia–Ohio, West Virginia and Pennsylvania–to “build the country’s first natural gas and petrochemical hub” outside of the Gulf Coast. According to Energy Secretary Rick Perry, such a plan is in the the country’s national security interests. Members of the Trump team are also having discussions with leftists like NY Gov. Andrew Cuomo, to try and convince him to allow pipelines into and through the state. If states like NY won’t allow it, Perry holds out the hope/threat that the feds will invoke the Constitution’s interstate commerce clause to make them.
A grandmother concerned that if Range Resources were to build a well pad three-fourths of a mile from her granddaughter’s school (in Washington County, PA) instead of building it a full mile from the school, tried to gain legal standing to challenge a permit granted to Range by Mount Pleasant Township. Grandma says her granddaughter has a sensitivity to benzene fumes. Yesterday a Commonwealth Court panel ruled she does NOT have legal standing to challenge the permit.