Pennsylvania

Chesapeake Energy | Energy Companies | Greene County (PA) | Pennsylvania | Rice Energy

Chesapeake Sells 22K Acres in Greene County, PA to Rice Energy
July 8, 2014July 8, 2014

Chesapeake Energy continues to sell off assets in an attempt to boost its stock price and make corporate raider Carl Icahn even richer. The latest fire sale: Rice Energy announced yesterday they’ve picked up 22,000 acres and 12 Marcellus Shale wells from Chessy located in Greene County, PA for $336 million. According to Rice’s President & COO Toby Rice, the acreage is a “high quality” shale asset located in an area they’ve been developing since 2009…
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Earthquakes | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Considers New Rules to Prevent Earthquakes from Fracking
July 8, 2014July 8, 2014

The Pennsylvania Dept. of Environmental Protection (DEP) has launched a “massive data mining project” to consider drafting new rules around induced seismicity–or the possibility that in rare circumstances fracking itself may cause low-level earthquakes. What seems to have caught the attention of the DEP is the assumption by their counterparts in Ohio, the Ohio Dept. of Natural Resources (ODNR), that a series of low-level earthquakes near the OH/PA border were in fact due to fracking operations being conducted by Hilcorp (see ODNR Says Youngstown Earthquakes “Probably” Caused by Fracking)…
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Accidents | Chevron | Energy Companies | Greene County (PA) | Industrywide Issues | Litigation | Pennsylvania

Parents of Worker Killed in Chevron Greene Co Fire Sue
July 8, 2014July 8, 2014

In February of this year there was an explosion and fire at Chevron’s Lanco 7H well pad in a remote area northwest of Bobtown in Greene County, PA (see Explosion & Fire at Chevron Well in SWPA – 1 Person Missing). Sadly, the fire killed Ian McKee, 27, a Cameron International contractor working at the Chevron well site (see Remains of Chevron Contractor Found at Greene County Well Site). Ian’s parents recently filed paperwork suing Chevron…
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Belmont County | Butler County | Carroll County | Energy Companies | Guernsey County | Noble County | Ohio | Pennsylvania | Rex Energy

Rex Energy Begins Selling Ethane; New Wells Go Online in June
July 8, 2014July 8, 2014

Rex Energy, the “little driller that could” and indeed “is” doing a marvelous job in the Marcellus Shale, issued an important update yesterday. Rex reports they began ethane sales on June 11–which was a little bit delayed from what they had expected. But better late than never. Rex projects selling 2,000-3,000 barrels per day of ethane until mid-July at which point more sources will come online. Once all cylinders are firing, the company expects to sell 5,000 barrels of ethane per day. In addition to the good ethane news, Rex recently brought a number of new Marcellus Shale wells online and expects to keep up a brisk pace this year…
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Accidents | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Wastewater | Westmoreland County | WPX Energy

WPX Wastewater Impoundment Source of Water Contamination in W PA?
July 7, 2014July 7, 2014

Three families near a WPX Energy wastewater impoundment near Ligonier (Westmoreland County), PA say their well water has been contamined by wastewater leaking from the impoundment. The case is just coming to light (at least for MDN) although the PA Dept. of Environmental Protection (DEP) has known and has investigated the “leaky impoundment” for going on two years now…
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Energy Companies | EQT Corp | Pennsylvania | Washington County

EQT Offers Neighbors Near Finleyville Drill Pad $50K for Nuisance
July 7, 2014July 7, 2014

ProPublica has a new story claiming that Marcellus driller (and midstream company) EQT has done something really unusual in Washington County, PA. The company, last year, was in the process of drilling 12 wells on a single pad. With all of the trucks and noise and dust, it didn’t take the neighbors long to start complaining. EQT attempted to address those concerns, meeting with neighbors and conducting air tests, etc. However, after apparently growing tired of the hassles, EQT finally just offered each household/neighbor near the pad $50,000–if those neighbors would sign a “nuisance easement” that pretty much says the neighbors absolve EQT from any damages for anything related to their drilling and pipeline operations…
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Energy Companies | Industrywide Issues | M&A | Pennsylvania | Warren Resources | Wyoming County (PA)

Warren Resources Buys Marcellus Acreage/Wells from Citrus Energy
July 7, 2014July 7, 2014

The Marcellus Shale has a new driller in town. This morning, New York City-based Warren Resources announced they have acquired essentially all of the Marcellus assets owned by Colorado-based Citrus Energy for $352.5 million. Warren immediately takes title to several working Marcellus wells currently producing 82 million cubic feet of gas per day…
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Allegheny County | Energy Services | Fluid Delivery Solutions (FDS) | Industrywide Issues | M&A | Pennsylvania

3 Investment Cos Buy Fluid Delivery Solutions – Terms Not Disclosed
July 7, 2014July 7, 2014

Three private equity companies (investment firms) announced last week they have acquired a majority interest in Fluid Delivery Solutions (FDS), an oilfield water management company that provides fresh water transfer and storage for drillers in the Marcellus, Utica and other shale plays. Terms of the buyout were not disclosed, however, FDS’ management and staff will remain in place. Essentially FDS has transferred ownership to investors with deep pockets but have kept the keys to the company…
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Energy Companies | Greene County (PA) | Pennsylvania | Vantage Energy

Marcellus Driller Vantage Energy Files for $400M IPO
July 7, 2014July 7, 2014

Colorado-based Vantage Energy, with a major operation in the Marcellus Shale, has filed paperwork with the Securities and Exchange Commission for an initial public offering (IPO) in which they hope to sell $400 million worth of stock. Vantage owns 48,000 acres in the Marcellus Shale–in Greene County, PA. They also have a sizable stake in the Barnett Shale (in Texas)…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Branding Squabble Among Sunoco Siblings over Mariner East Project
July 7, 2014July 7, 2014

For MDN, an interesting story in the Philadelphia Inquirer tackles the tricky issue of branding and the very visible brand of Sunoco. It seems Sunoco that sells you your gasoline at filling stations across the country is often confused with Sunoco Logistics, the company that builds pipelines, like the Mariner East pipeline. Mariner East would repurpose a pipeline that crosses the state of Pennsylvania from west to southeast and would deliver natural gas liquids, including propane, to the Marcus Hook refinery near Philadelphia. Mariner East has faced still opposition (see More Pushback from PA Residents on Proposed Mariner East Pipeline). Anti-drillers are trying to tarnish the Sunoco name and that has Sunoco the filling station company concerned…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Transco | Williams

Chains & Old Ladies: Kinky Protest Talk in Lancaster County, PA
July 3, 2014July 3, 2014

We’ve pointed out the hardened anti-drillers who oppose the Williams Atlantic Sunrise Pipeline project in Lebanon County, PA only number around 50 people–out of a population of 133,568 residents in that fine county (see Lebanon County Anti-Pipeline Meeting Yields a Surprise). When denied a public forum to spew and spout, they sit on the floor and behave like babies (see Williams’ Smart Open House in Lebanon County Confounds Antis). And when they still can’t get their way, they bring in lawyers (see Lebanon PA Anti-Drillers Plot Ordinance Against Williams Pipeline). In neighboring Lancaster County, they have a small anti-pipeline contingent too–but interestingly they were able to get 75 anti-drillers to turn out for a protest last weekend–a full 50% more than Lenanon County has been able to muster…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Rep’s Economic Illiteracy On Display re Severance Tax
July 3, 2014July 3, 2014

We have to wonder, is PA State Rep. Rosita C. Youngblood (Democrat from Philadelphia) actually brain dead? At a minimum she’s an economic ignoramus, understanding 0% about economics and business and what it takes to make a successful business. Youngblood had the temerity (stupidity?) to write an editorial for the Philadelphia Weekly Press in which she says casinos in the state are taxed 55% of all money that passes through their hands, and therefore a measly 5% (or even 10%) severance tax on shale drilling is peanuts. Uh, Ms. Youngblood, have you ever heard of the concept of risk in business? Or profit?… Read More “PA Rep’s Economic Illiteracy On Display re Severance Tax”
Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

Federal Court Dismisses Doctor Lawsuit re Act 13 “Gag Rule”
July 2, 2014July 2, 2014

The lawsuit brought by seven selfish towns against Pennsylvania’s Act 13 drilling law has had more twists and turns than a back road in the Pocono Mountains. The litigious towns, plus a doctor, sued over various provisions in the Act 13 law. The towns didn’t like being told they couldn’t zone drilling out of existence within their borders, and the doctor didn’t like being told he couldn’t blab drillers’ trade secrets all over the place. So it went to PA’s Supreme Court and they ruled in favor of the towns, but sent parts of the lawsuit back to a lower court, including the doctor’s portion (see Act 13 Goes Back to Lower Court, Disturbing Comments from Judge). A second lawsuit was filed by a different doctor along the same lines (so-called “gag rule”)…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Statewide PA

Yet Another “Natgas Worse than Coal” Study from Tony Ingraffea
July 2, 2014July 2, 2014

Our old friend Tony “shut all fracking down” Ingraffea, who happens to (still) hold a job teaching at Cornell University, is back with yet another “research study” that (surprise!) bashes fracking. Or more properly shale drilling. This time around Tony, who has a lucrative side job by gallivanting from anti-drilling meeting to anti-drilling meeting to spread the word that fracking is evil (see Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY), says shale wells have a higher rate of failure in the cement casings in Pennsylvania and he can prove it. How?…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Budget Passes House & Senate with No Severance Tax
July 1, 2014July 1, 2014

Hats off to the Republican-controlled House and Senate in Pennsylvania. They passed a budget on time, before the midnight deadline last evening, and that budget contains just one new tax. Fortunately, it’s not a Marcellus Shale severance tax. So, kudos! However, the budget was not signed by PA Gov. Tom Corbett, also a Republican. He didn’t sign not because it because it didn’t include certain pension reforms he wants. One thing that the Democrats really wanted and the Republicans were only too happy to grant them: A new $2 per pack tax on cigarettes sold in Philadelphia, which is supposed to raise $80 million for Philly schools. Wait til they figure out everyone is fleeing to the suburbs to buy cheap cigs and the new tax fails!…
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Industrywide Issues | Pennsylvania | Roads | Statewide PA | Supply Chain

Another Supply Chain Success Story: Flagger Force
July 1, 2014July 1, 2014

The ingenuity of small business people never ceases to amaze us–especially that of small businesses finding ways to serve, and profit from, the Marcellus and Utica Shale drilling industry. In business circles it’s called the “supply chain”–those companies who find ways of profiting from drilling. The latest company to do so is Flagger Force–a company based in Lancaster County, PA that sends out flaggers (to control traffic) in many surround states beside Pennsylvania. Flagger Force is also a major vendor for drillers in PA…
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