Pennsylvania

Carbon County | Electrical Generation | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation

PennEast Changes Route Where it Crosses Appalachian Trail
July 31, 2015July 31, 2015

This story is cool on many levels. Score another PR victory, and another clever re-route, for the PennEast Pipeline. PennEast, you may recall, is a $1 billion, 110-mile, 36-inch diameter natural gas pipeline that will run from Luzerne County, PA to Mercer County, NJ. It is vigorously opposed by Big Green groups like the nutty Sierra Clubbers and THE Delaware Riverkeeper. Some who oppose it have threatened violence (see today’s companion story). Why? Because the PennEast will flow that evil, nasty fossil fuel called natural gas. Can’t have that, you know. PennEast has made a course correction that is sure to cut down on the time it requires to get approved. The course correction is where the PennEast will cross the Appalachian Trail in Carbon County, PA. The course correction also lets the PennEast deliver cheap Marcellus Shale gas to a new electric generating plant being built by the Blue Mountain Ski Resort…
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Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources Chops 11% of Workforce (so Far) in 2015
July 31, 2015July 31, 2015

The low price drillers receive for natural gas, NGLs and oil, and the results those prices have on revenues for drillers, continues to take a big bite out of the industry. Companies, rightly or wrongly, reduce head count in order to keep the balance sheet less red than it otherwise would be. One of the easiest and quickest ways to improve finances at big companies is to cut head count. Two weeks ago CONSOL Energy laid off 10% of its workforce–some 470 people (see CONSOL Slashes 10% of Workforce – 470 Jobs Gone). Range Resources is latest to confirm company-wide layoffs. So far this year Range has cut 11% of its workforce. In May, Range laid off 41 people in the Marcellus/Utica region…
Read More “Range Resources Chops 11% of Workforce (so Far) in 2015”
Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

PA Court: Gas Storage Fields Lock Up Property for Drilling Too
July 30, 2015July 30, 2015

In some locations there are small or large underground storage fields for natural gas located in the Marcellus/Utica. We’ve covered stories in the past about one such field–the Brinker Storage Field, a 35,000 acre area in Columbiana County, Ohio that Columbia has used to store natural gas going back more than 50 years (see Some Brinker Field (OH) Leases Revised, Others in Lawsuit). More often than not these fields seem to be a flash point with respect to leases and potential drilling under them. Because the fields were leased years ago, there are disagreements about what the leases say about royalties for any gas drilled under them. Little did we know (in fact we didn’t know) there are such storage fields located in Pennsylvania too. A case went to court challenging the right of Range Resources and NiSource (their Columbia Gas subsidiary) to retain lease rights for both storing natural gas and drilling for natural gas for property partially included in a unit that includes a 14,000 underground Donegal Storage Field operated by NiSource in Washington County, PA. The landowners have just lost the case–meaning units with storage fields under them can “hold by production” undrilled land in the unit solely because there is gas stored…
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Allegheny County | Education | Industrywide Issues | Pennsylvania

Pitt Law School Launches ‘Energy Law and Policy Institute’
July 30, 2015July 30, 2015

A meaningful percentage of MDN’s paying subscribers are lawyers. Energy lawyers. Why? Just about everything involved with shale energy–from exploration to signing leases to drilling, pipelines, production and even selling the end product involves lawyers. Whether the energy industry is in a up-cycle or down-cycle, the one recession-proof area of the industry is the law. So it was no surprise to learn that the University of Pittsburgh’s School of Law has just launched an Energy Law and Policy Institute. The institute “is a major priority of the School of Law and the University” according to the Pitt announcement. The purpose of the Institute? To “advance the training of law students to become leaders in providing legal services to the regional, national, and international energy sectors” by offering new courses, seminars, conferences and the like. Here’s the announcement…
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CONSOL Energy | Energy Companies | Pennsylvania | Utica Shale | Westmoreland County

CONSOL Drills 2nd Best Utica Well Ever in PA, Flows 61 Mmcf/d!
July 29, 2015July 30, 2015

Yesterday CONSOL Energy’s management team hosted their second quarter 2015 analyst and investor conference call. There was major information contained in that call. The big news is that CONSOL just hooked up and tested a new Utica Shale well in Westmoreland County, PA that is the second best initial producing Utica well ever. Just last week MDN told you about the #1 Utica well drilled so far, by EQT (see EQT’s 1st Utica Well Shatters Record – 72.9 MMcf/d IP Rate!). The EQT monster Utica well is located in Greene County, PA. The CONSOL well just brought online ~~is located about four miles away from that well~~–and is initially producing and flowing at 61 million cubic feet per day! [Correction: CONSOL’s 61 MMcf/d gusher is the Gaut 4IH. CONSOL is right now drilling the GH9 well that is four miles from the big EQT monster well.] This is really big news and is the reason that Utica drilling has turned CONSOL’s head away from Marcellus drilling…
Read More “CONSOL Drills 2nd Best Utica Well Ever in PA, Flows 61 Mmcf/d!”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA House Speaker Stands Firm Against Gov Wolf’s Severance Tax
July 28, 2015July 28, 2015

Thank God for Pennsylvania House Speaker Mike Turzai, Republican from Allegheny. Turzai continues to stand against the lunacy of Tom Wolf’s insane budget proposals, including a proposed Marcellus Shale severance tax that would further gut shale drilling in the state–handing the money raised over to teachers’ unions. Turzai said it’s time to think about overriding Wolf’s veto of the proposed Republican budget–a plan which balances the budget instead of running up the tab as Wolf would do. The Republican budget would INCREASE spending on education (something mainstream media doesn’t tell you) all while not increasing taxes on the middle class and without killing the Marcellus industry with a new/high tax. Socialist Tom Wolf won’t hear of it. So Turzai is putting out the word: Are there 16 Democrats in the House and 4 Democrats in the Senate that will be brave and bipartisan and reach across the isle to vote for a sane budget–to override Wolf’s veto? Apparently not yet–but perhaps there will be in time. Meanwhile, Wolf’s dirty tricks division continues to launch advertisements to smear Republicans, something Turzai calls “tawdry and unproductive”…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Antis Plan to Protest Pipeline Talk Tonight in Lancaster County
July 28, 2015July 28, 2015

A small group of anti-fossil fuel protesters plans to disrupt an information meeting being hosted by the Chamber of Commerce in Lancaster County tonight. The event will feature representatives from Williams discussing and sharing information about their planned $3 billion Atlantic Coast Pipeline project–a project largely embraced by the public but opposed by a few small pockets of dedicated protesters, one such group being Lancaster Against Pipelines. The Atlantic Coast project will flow Marcellus Shale gas to Mid-Atlantic and southern states. Most of the protesters are too cheap to buy a $25 ticket to the event, so they’ll stand outside and make fools of themselves by chanting and hollering at those who enter the meeting. We encourage a contingent of pro-drillers to show up and stand outside to show support for the project. It’s time to show everyone that supporters far outnumber detractors…
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Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics | Washington County

Mariner East Pipeline Uses Eminent Domain Against SWPA Landowners
July 28, 2015July 28, 2015

Confession: We have a tough time with eminent domain cases filed by pipeline companies. We believe property rights are sacrosanct–you don’t tell me what I can and can’t do with my property, and I don’t tell you what you can and can’t do with your property. But then zoning laws enter the picture. And statewide bans on fracking. Etc. What happens if all but a handful of landowners sign up to allow a pipeline? Should an entire project that when built results in a greater “good” for society get nixed because of half a dozen of holdout landowners? Tough tough issues. The latest skirmish comes from Washington County, PA where Sunoco Logistics has filed eminent domain cases against a handful of landowners who won’t allow new construction through their property for the Mariner East Pipeline project. Sunoco has taken them to court and seeks leases on a total of 11 acres…
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Energy Companies | EQT Corp | Greene County (PA) | Pennsylvania

EQT’s 1st Utica Well Shatters Record – 72.9 MMcf/d IP Rate!
July 24, 2015July 24, 2015

We have plenty of EQT news today, but none of it is (for us) as big as this: EQT finished fracking their very first Utica Shale well in Greene County, PA last week, a well that they call “the most technically challenging well” they’ve ever drilled. But man oh man was it worth it! The EQT Utica well is gargantuan. It is the new reigning #1 champ for any on-shore shale well anywhere in the world that we’re aware of when it comes to production. The EQT Utica well produced a truly astonishing initial production (IP) of 72.9 million cubic feet of natural gas per day (MMcf/d). The previous record-holder was a Range Resources Utica well in Washington County, PA at 59 MMcf/d (see Range Resources Drills #1 Producing Marcellus Shale Well in 1Q15). We’re not quite sure how to convey just how big this news is! EQT flowed their new Utica production right into a pipeline for sale–the well has not been shut in. Once the initial gush settled down, the well is now producing 22 MMcf/d. Stupendous output. EQT is planning to drill their second Utica well in Wetzel County, WV later this year…
Read More “EQT’s 1st Utica Well Shatters Record – 72.9 MMcf/d IP Rate!”
Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Washington County

EQT Midstream Building $250 Million Pipeline – for Range Resources!
July 24, 2015July 24, 2015

In a show of “coopetition” or cooperative competition, EQT Midstream, a division of major Marcellus/Utica driller EQT Corporation, is going to build a $250 million, 32-mile “header pipeline” for arch-rival Range Resources in southwestern Pennsylvania to “support Range’s dry Marcellus and Utica development.” The new pipeline, which will be built in two phases in 2016 and 2017, will provide Range with more than half a billion cubic feet of natural capacity per day…
Read More “EQT Midstream Building $250 Million Pipeline – for Range Resources!”
Beaver County | Electrical Generation | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell

Shell Will Build Gas-Fired Electric Plant to Power PA Cracker
July 24, 2015July 24, 2015

If Shell builds an ethane cracker plant in Beaver County, PA, as they’ve been teasing since 2011, the massive plant will require a lot of electricity to power it–enough electricity to power 100,000 homes. Shell does not plan to just hook up to the local utility for its electricity. Instead, they will build their own natural gas-powered electric generating plant on location. Any electricity they generate but can’t use will be sold to the local power grid…
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Centre County | Lycoming County | Pennsylvania

Marcellus Gas on the Way for PA Customers with No Pipelines
July 24, 2015July 31, 2015

In June MDN told you about a very neat concept–delivering natural gas to customers who don’t live near pipelines and likely never will (see Getting Marcellus NatGas to Rural Customers without Pipelines). As we told you at the time, Compass Natural Gas is building a distribution terminal in Lycoming County, PA that will accept Marcellus Shale gas in, clean it up (get rid of the water in it), compress it to 3600 psi, and load it into specially designed trailers and haul it to customers. We have an update. Work is proceeding on the Lycoming County facility–and Compass will build its second terminal in Centre County, PA. Compass plans six of these terminals in all…
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Pennsylvania | Statewide PA

Drillers are Drilling Less in PA State Forests
July 24, 2015July 24, 2015

Shale gas development on previously leased state land in Pennsylvania is slowing down–a lot. The number of new well pads in state forests dropped to eight new pads (32 acres of land) during 2014. That’s down from 19 new pads in 2013, and a high of 86 pads in 2011. New pipelines being built converted 66 acres of forestland into green fairways in 2014, down from 2011 when 272 acres of forestland was used for pipelines…
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Energy Services | Industrywide Issues | Luzerne County | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

PennEast Pipeline Offers Spirited Defense, Counters False Claims
July 24, 2015July 24, 2015

How do you break through the ongoing misinformation pumped out by mainstream media and lying environmental organizations like the Sierra Club and THE Delaware Riverkeeper when it comes to the necessity, wholesomeness and righteousness of pipeline projects like the PennEast Pipeline planned to run from the Wilkes-Barre, PA area to the Trenton, NJ area? Peter Terranova, chairman of the PennEast Pipeline Board of Managers, is taking his message about the PennEast directly to the citizens by publishing a guest viewpoint in Wilkes-Barre’s The Citizens’ Voice newspaper. In his column Terranova lays out the case for the PennEast–and addresses some of the lies being spread by ne’er-do-well “environmental” organizations…
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Columbia Pipeline Group | Energy Services | Pennsylvania | Washington County

Columbia Midstream Donates $20K to Washington County, PA Fire Dept
July 24, 2015July 24, 2015

Columbia Midstream, an affiliate of Columbia Pipeline Group, Inc., presented a $20,000 grant to the West Finley Volunteer Fire Company on Tuesday to aid the funding of a new fire truck for the township. The check presentation took place at the West Finley (Washington County), PA fire station, where Steve Emery, West Finley Fire Chief, accepted the check on behalf of the fire company…
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Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

No Work Gets Done at Inaugural PA Pipeline Task Force Meeting
July 23, 2015July 22, 2015

In May, Pennsylvania Gov. Tom Wolf announced the formation of the Pipeline Infrastructure Task Force (PITF)–an effort to “promote unprecedented collaboration of stakeholders to facilitate the development of a world-class pipeline infrastructure system” (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). Last week we told you who Wolf appointed to the 42-member committee–one-third of them report to him in one fashion or another (working for the state government), and over one-half of the members work for either local, state or federal government (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). In other words, Wolf packed the so-called task force with people who don’t know a darned thing about the private sector and how to run a business. Yes, it is a train wreck waiting to happen. Wolf and his minion DEP Sec. John Quigley intends to slow down the pace of pipeline construction in the state just when it needs to speed up. Such are the consequences of voting for the wrong candidate. Yesterday the PITF held it’s first official meeting with Quigley chairing it. Interestingly, there was talk from Quigley about midstreamers getting a “social license”…
Read More “No Work Gets Done at Inaugural PA Pipeline Task Force Meeting”