Pennsylvania

Industrywide Issues | Lackawanna County | Luzerne County | Pennsylvania | Taxation

Specifics on Marcellus $ Helping to Clean Chesapeake Bay Pollution
December 13, 2013December 13, 2013

A month ago MDN brought you the good news that money raised as part of the Marcellus Shale impact fee in PA is being used to launch a project that is hoped will clean up the single largest source of pollution for the Chesapeake Bay–the Old Forge borehole near Scranton, PA (see Marcellus Drilling Helps Fix Biggest Polluter of Chesapeake Bay). The initial story outlines the high level plan by Susquehanna Mining Solutions LLC to build a treatment plant that will convert acid mine water coming from the borehole (some 60-100 million gallons per day) into clean water for other uses.

The original article was short on specifics. We now have a few of the specifics for how Susquehanna Mining Solutions will perform this miracle. It’s no small task…
Read More “Specifics on Marcellus $ Helping to Clean Chesapeake Bay Pollution”
Energy Companies | Pennsylvania | Susquehanna County | WPX Energy

WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp
December 12, 2013December 11, 2013

Is Franklin Township in Susquehanna County, PA the new Dimock? Let us explain. You may recall that 17 families in rural Dimock, PA claimed that nearby natural gas drilling by Cabot Oil & Gas led to water well contamination from methane (natural gas) and/or fracking chemicals. The history of Dimock is well-established on this blog and in numerous other places. It was made famous by Josh Fox and his Gasland fictional movies. No one seriously believes the water in Dimock was contaminated with fracking chemicals because it’s never happened–anywhere. Not once. Methane, on the other hand, is a different matter. It can and does migrate–sometimes.

To this day Cabot disputes that their drilling led to methane contamination of Dimock water wells. The PA DEP investigated and said it did. The case is now closed on Dimock (see Cabot Buys Second Dimock, PA Property on Carter Road). One of the more theatrical aspects of the Dimock story was when Cabot removed DEP-ordered water tanks, called water buffaloes, from homes that refused to allow Cabot to install DEP-ordered methane filtration systems. Some of the families, like Craig and Julie Sautner, were suing Cabot for big bucks and didn’t want their water supply fixed. When Cabot came to remove the water buffaloes, it was a media circus complete with celebrities bleating on camera. In some respects, a town about 15 miles from Dimock–Franklin Township–is turning into the same media circus. Different driller, different families, same issue of removing water buffaloes…
Read More “WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

PA Sen. Bob Casey “Pressures” Shell to Commit to PA Cracker Plant
December 12, 2013December 11, 2013

This is rich. MDN has long chronicled the flakiness of U.S. Bob Casey (Democrat, PA) on the shale drilling issue. On one hand he wants the heavy hand of the federal government to regulate drilling, violating the Constitution in doing so. On the other hand, like a typical sleazy politician, he has his hand out and wants the money and jobs shale drilling generates (see The Two Faces of Sen. Robert Casey (D-PA) on Shale Drilling).

The hand-stuck-out-for-money-and-jobs Casey is manifesting again at present. He just fired a letter off to Shell to “pressure them” into making a decision about moving forward with an ethane cracker in PA. Which is kind of funny, that he’s posturing and preening and pretending to goad Shell along when Shell is already well along and likely to move forward with no regard for what Bob Casey wants or thinks (see Odds in Favor of a PA Ethane Cracker Just Went WAY Up). What a waste of a Senate seat. Here’s what the preening Bob Casey said to Shell…
Read More “PA Sen. Bob Casey “Pressures” Shell to Commit to PA Cracker Plant”
Air Quality | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Washington County

MarkWest Chartiers Twp Plant Sued for “Trespassing” on Air Space
December 12, 2013December 11, 2013

Two couples with the same last name and who both live near the MarkWest gas processing plant in Chartiers Township (Washington County), PA are suing MarkWest claiming the plant is causing air pollution and is “trespassing” on their air space. MDN has chronicled problems at the plant in the past (see MarkWest Served Violation Notice for Chartiers Processing Plant).

Both couples, with the last name Sethman, report a variety of physical ailments they claim are caused by air pollution from the plant…
Read More “MarkWest Chartiers Twp Plant Sued for “Trespassing” on Air Space”
Energy Companies | Halcon Resources | Industrywide Issues | Lease & Royalty Payments | Litigation | Mercer County | Pennsylvania

Mercer County Landowners Suing Halcon Get Small Victory
December 12, 2013December 11, 2013

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…
Read More “Mercer County Landowners Suing Halcon Get Small Victory”
Pennsylvania | Statewide PA

Marcellus Shale Coalition Appoints New Slate of Officers
December 12, 2013December 11, 2013

A new chairman of the board has taken the helm at the Marcellus Shale Coalition (MSC). The MSC, arguably the Marcellus’ premier trade group, announced yesterday that their new chairman will be Scott Roy, vice president of government and regulatory affairs for Range Resources Corporation. In addition to Scott, the positions of vice chair, treasurer and secretary will also change.

Stepping into the vice chair position is Heather Lamparter, VP at EXCO Resources; treasurer will be Mark Hager, senior government affairs rep at Williams; and secretary will be Gary Smith, VP & general manager for EOG Resources. Scott Roy as chairman of the board should not be confused with MSC president Dave Spigelmyer who is responsible for running the day to day operations of the organization. Here’s yesterday’s MSC board announcement:
Read More “Marcellus Shale Coalition Appoints New Slate of Officers”
Energy Companies | Pennsylvania | Rice Energy | Washington County

Impending Rice Energy IPO Creating a Buzz
December 11, 2013December 11, 2013

MDN has known–well, suspected–since October that Rice Energy would soon be going public and that an initial public offering of stock (IPO) would value the company as much as $2.5 billion (see Rice Energy Rumored IPO – Dan Rice Gets Last Laugh). So when we reported yesterday that Alpha Natural Resources was selling its 50% joint venture stake to Rice for $300 million ($200 million of it in Rice stock when it goes public), we didn’t think much of it (see Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy).

Apparently not everyone knew about Rice going public and the news has hit like a thunderclap. Here’s an example, along with an estimate of when shares in the IPO will be offered:
Read More “Impending Rice Energy IPO Creating a Buzz”
Bradford County | Energy Companies | Lycoming County | Pennsylvania | Southwestern Energy | Sullivan County | Susquehanna County | Tioga County (PA) | Wyoming County (PA)

Southwestern Energy’s Board Changes, Marcellus Plans for 2014
December 11, 2013December 11, 2013

Some fairly big news from one of the Marcellus Shale’s largest drillers–Southwestern Energy. In a flurry of announcements issued yesterday, we learn that Southwestern’s President & CEO, Steve Mueller, will take over as Chairman of the Board next May when current Chairman Harold Korell retires. Mueller plans to keep the title of CEO but apparently he will shed the title of President, so that begs the question, who will become Southwestern’s new president next year? Interestingly (perhaps related?) Southwestern also announced yesterday the promotion of Jeffrey Sherrick to the position of Executive Vice President for Corporate Development. Hmmm.

In addition to personnel announcements, Southwestern issued a guidance statement about their plans for capital spending in 2014. The statement indicates Marcellus production will increase by a whopping 60% next year. Southwestern’s estimated Marcellus production for 2013 is 148-149 billion cubic feet (Bcf). Next year they expect it will be 244-249 Bcf based on superb well performance in Bradford, Lycoming and Susquehanna counties. Southwestern boasts that one of their Susquehanna County wells achieved an initial production of 32 million cubic feet per day! In 2014 Southwestern plans to begin drilling in three additional northeastern PA counties…
Read More “Southwestern Energy’s Board Changes, Marcellus Plans for 2014”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

After 9 Months, Chris Abruzzo Confirmed as Sec. of PA DEP
December 11, 2013December 11, 2013

In September MDN told you that Chris Abruzzo, the “Acting” Sec. of the PA Dept. of Environmental Protection (DEP) was nominated by Gov. Tom Corbett to fill the post vacated by former Sec. Michael Krancer (see No More “Acting” for Abruzzo – Nominated as Secretary PA DEP). Last week Senate Democrats tried to rake Abruzzo over the global warming coals because Abruzzo doesn’t believe global warming is quite the big deal they do (see PA DEP Sec. Abruzzo Grilled by PA Senate on Global Warming).

We’re happy to report that Abruzzo has now been confirmed by the Senate (42-8, with partisan Democrats voting against). Finally, after holding and executing the duties of the office for nine months, E. Christopher Abruzzo is the full Sec. of the PA DEP. We congratulate him!…
Read More “After 9 Months, Chris Abruzzo Confirmed as Sec. of PA DEP”
Energy Services | Ethane | Industrywide Issues | MarkWest Energy | Pennsylvania | Pipelines | Washington County

MarkWest Extends Open Season for “Little” Ethane Pipeline
December 11, 2013December 11, 2013

MarkWest conducted an open season for their “little” 30-mile ethane pipeline that will run from Majorsville, PA to Houston, PA (in Washington County) from early November until December 9th. The MarkWest Liberty Ethane Pipeline is a pipeline to other pipelines (see MarkWest Open Season for “Little” Ethane Pipeline). Ethane arriving in Houston, PA will be able to hitch a ride out of the northeast via other pipelines to cracker plants and processing facilities in Canada and the Gulf Coast.

Apparently the open season didn’t garner as much business as MarkWest had hoped, because yesterday they announced “ya got a few more days to sign up.” The new deadline for the open season is this Friday, December 13th at 5:00 pm Eastern. So hurry and sign up, while you still can! Here’s the MarkWest announcement from yesterday extending the open season for the Liberty Ethane Pipeline:
Read More “MarkWest Extends Open Season for “Little” Ethane Pipeline”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Handful Protest Mariner East Pipeline at Sunoco HQ in Philly
December 11, 2013December 11, 2013

Something like two dozen paid, professional protesters showed up at Sunoco Logistics headquarters yesterday in downtown Philadelphia to preen before (a few) media cameras and make outrageously false statements about the Mariner East pipeline. These are people with nothing better to do with their time than to desperately try to grab 15 minutes of fame.

Here’s an example of the bilge that flowed from the groups financing the protest:
Read More “Handful Protest Mariner East Pipeline at Sunoco HQ in Philly”
Lease & Royalty Payments | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Clear Fork Royalty Now Buying Royalty Rights in PA & WV
December 11, 2013December 11, 2013

There are companies that will purchase landowners’ royalty payments–giving them a lump sum payment in return for signing over all future royalty payments to the company (or individual) buying them. It’s not unlike companies that approach and pay lottery winners who receive payouts over a long period (for life, or for a period of years), the winners selling their future payments for a single lump sum now. Of course by selling future royalty payments for money now, the landowner will typically accept far less than they otherwise would have received by continuing to get the royalty checks over time. But there are certain circumstances (terminal illness, for example) when the landowner would rather have as much of their money as they can get–right now. And so royalty-purchasing companies exist to oblige.

One of those companies is Texas-based Clear Fork Royalty, who (by press release) has announced they’ve now hung their shingle in the Marcellus/Utica region–in PA and WV. If you’re a royalty owner, Clear Fork may come knocking on your door…
Read More “Clear Fork Royalty Now Buying Royalty Rights in PA & WV”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Oil & Gas & The Marcellus – An “Unstoppable” Combination
December 10, 2013

Cabot Oil & Gas continues to exceed expectations and, well, impress just about everybody! Yesterday Cabot issued an operations update. Among the highlights: They’ve just completed a 10-well pad in Susquehanna County (dry gas portion of the Marcellus). Calling it, “the new standard for operational efficiencies and technological advancement,” Cabot said the 10-well pad was completed with 170 frac stages and had a combined peak production rate of a huge 201 million cubic feet (Mmcf) per day. That’s an average of 20.1 Mmcf/d per well for all 10 wells! This is exciting stuff folks.

In addition to the excellent Marcellus news, Cabot announced they’ve sold more of their mid-continent “non-core” assets, bringing the total to $325 million worth of non-core assets this year. A good share of that money is being invested in the Marcellus. Below we have the full Cabot press release, the Cabot investor slide deck (with some great charts and maps), and energy analyst Robert Zeit’s key takeaways from yesterday’s update…
Read More “Cabot Oil & Gas & The Marcellus – An “Unstoppable” Combination”
Barbour County | CONSOL Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide WV | Washington County | West Virginia

CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report
December 10, 2013December 10, 2013

CONSOL Energy issued a press release today updating their Marcellus Shale well results from wells drilled in Washington County, PA. In addition to PA, CONSOL owns leases for and is actively drilling in the West Virginia Marcellus area–most of it in the “wet gas” (natural gas liquids) area of the Marcellus. The update says they just completed their first pad in Barbour County, WV, a pad with six wells on it.

The big news in today’s announcement: CONSOL has just purchased another 90,000 acres of leases in WV–from Dominion Resources–for $190 million ($2,111 per acre). The deal will allow CONSOL to not only drill in the Marcellus layer, but also the Upper Devonian shale layer as well. CONSOL is one of the few drillers (so far) targeting the Upper Denonian (see MDN’s Upper Devonian category for stories about who else is targeting that layer)…
Read More “CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report”
Energy Companies | Greene County (PA) | Pennsylvania | Rice Energy

Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy
December 10, 2013December 10, 2013

Alpha Natural Resources, a coal company, formed a 50/50 joint venture with Rice Energy in 2010 to drill Marcellus Shale gas wells in Greene County, PA. Yesterday Alpha announced they’re bailing out and selling their 50% stake to Rice Energy for $300 million. The terms are Alpha gets $100 million in cold, hard cash now, and stock in Rice Energy once Rice goes public.

Yesterday’s announcement with the details:
Read More “Alpha Natural Resources Sells 50% Marcellus Stake to Rice Energy”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Processing Plants | Statewide PA

Owner of Former Sunoco Refinery Speaks on Marcellus, Future
December 10, 2013December 10, 2013

The new owner of the former Sunoco refinery in South Philadelphia says purchasing the refinery did not start out as a rescue operation (saving 850 jobs), but it did end up being one. Philip Rinaldi, CEO of Philadelphia Energy Solutions, was the guest of honor at a United Steelworkers Local 10-1 banquet last Saturday. His comments reveal him to be plain spoken and not without a surprise or two. Rinaldi fancies himself an old-style industrialist–he likes businesses that make things, saying you can’t have a society that only flips hamburgers.

Rinaldi also said the Marcellus will play a key part in his future plans. Here’s the interesting Q&A with Philip Rinaldi, his comments about why he chose the Philly refinery and about what the future may hold:
Read More “Owner of Former Sunoco Refinery Speaks on Marcellus, Future”