Pennsylvania

Energy Companies | Erie County (NY) | New York | Pennsylvania | Seneca Resources | Statewide NY | Statewide PA

National Fuel Gas Production Jumps 45% in FY13
October 23, 2013October 23, 2013

National Fuel Gas Co. is headquartered in Buffalo, NY, but it’s the Pennsylvania Marcellus that is causing the company to grow “by leaps and bounds.” National Fuel said its oil and natural gas production jumped 45% during the fiscal year that ended Sept. 30. Via their Seneca Resources subsidiary, they are a major Marcellus player with 780,000 net acres in the PA Marcellus.

Which leads MDN to ask, what the heck are they still doing with their HQ in Buffalo? Why not move to Pittsburgh or someplace else in PA?…
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Anti-Drilling/Fossil Fuel | Bucks County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

Michigan Driller Walks Away in Frustration from SE PA Leases
October 23, 2013October 23, 2013

Michigan-based driller Arbor Resources leased a bunch of land in southeastern Pennsylvania six years ago–in Bucks County (in the orbit of Philadelphia). Specifically, they leased land for gas drilling in Nockamixon Township. There is no Marcellus Shale in that area, but there are other formations, including the South Newark Basin. Arbor wanted to drill a few test wells for natural gas in the area, but the town opposed it and went to court to block it. Then in 2012, some squishy liberal Republicans shamefully snuck an eleventh hour ban on drilling in the South Newark Basin until more “studies” could be done into the 2012 budget (see Republicans Sneak SE PA Drilling Ban into Budget Deal).

With continuing low prices for natural gas, six years of legal issues with Nockamixon Township, a ban by the Delaware Basin Commission in effect in that area, and a state-enforced ban from RINOs in place, Arbor is throwing in the towel and walking away from Nockamixon and southeast PA. Good riddance for Arbor, no doubt. Goodbye tax revenue, goodbye jobs and goodbye millions of dollars of investment for Nockamixon…
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Allegheny County | Chesapeake Energy | Energy Companies | Pennsylvania | Statewide PA

Back from the Chesapeake Dead: David Spigelmyer Takes Helm at MSC
October 22, 2013October 22, 2013

The Marcellus Shale Coalition (MSC), the premier organization representing the Marcellus drilling industry in Pennsylvania and beyond, has named a new leader. Since the organization’s founding in late 2009 it has been led by the very talented Kathryn Klaber. In a surprise announcement in July, Katie said she would be stepping down from her post (see Kathryn Klaber Stepping Down as CEO of Marcellus Shale Coalition). She has big shoes to fill. So who will fill them?

David Spigelmyer has become the new CEO of the MSC effective this week. David’s name may be familiar. Until August of this year he was chairman of the executive board for the MSC. He was on the board representing Chesapeake Energy, one of the largest drillers in the Marcellus. Then Chessy’s new CEO Doug Lawler swung his ax…
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Cameron County | Elk County | Energy Companies | Forest County | Lycoming County | Pennsylvania | Seneca Resources

Seneca Resources Reports Production Up 35% Thanks to Marcellus
October 22, 2013October 22, 2013

Seneca Resources, the drilling arm of National Fuel Gas Company, issued their fiscal 4th quarter (everyone else’s calendar 3rd quarter) operations update yesterday. Seneca is one of the major drillers in the Marcellus Shale in Pennsylvania. They report production for 4Q was up a very healthy 35% over the same period last year. They credit their Marcellus drilling program in Lycoming County, PA for that success.

Because of their success, Seneca has revised up their guidance (best guess) for how much natural gas they’ll produce this fiscal year–to 145-165 billion cubic feet (Bcf). The full report from Seneca, including initial production rates from some of their recently drilled wells…
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Centre County | Clinton County | Mifflin County | Pennsylvania

Central PA Counties Cooperate on Infrastructure for More Gas Use
October 21, 2013October 21, 2013

A new initiative in central Pennsylvania aims to make it easier for residents, businesses and drivers to take advantage of the abundant, cheap Marcellus Shale gas being produced all around them. The new initiative is being led by the SEDA Council of Governments (or SEDA-COG), a multi-county economic development agency in central PA.

The $160,000 project will identify areas where new infrastructure (pipelines, rail, filling stations, etc.) can be built to deliver natural gas for those hungry to begin using it…
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Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

End of an Era? Sautner’s Dimock Home Leveled, Property Sold
October 21, 2013October 21, 2013

It becomes harder and harder for mainstream media to keep the Dimock story alive. Dimock is a rural community in Susquehanna County, PA made famous by Josh Fox and his Gasland fictional movies. Without rehashing the entire story yet again, suffice it to say that nearby Marcellus drilling by Cabot Oil & Gas was said (by the PA Dept. of Environmental Protection) to have caused methane to migrate into some of the area’s water wells–especially around the Carter Road area.

The DEP ordered Cabot to install fixes on said wells and pay homeowners twice their property’s value, which they tried to do. Some of the families wouldn’t allow the fix and wouldn’t accept payment. Instead they sued, hoping for piles of money. One of those families was the Sautners…
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Allegheny County | Pennsylvania

South Fayette, PA Gets First Marcellus Permit Application
October 18, 2013October 18, 2013

South Fayette township in Allegheny County, PA (near Pittsburgh) is one of seven PA towns that sued the state after the Act 13 law was enacted last year, in 2012 (see Lawsuit Filed: PA Towns Sue State over Marcellus Act 13 Law). Their beef? Act 13 took away the right of local municipalities like South Fayette to apply their own zoning rules to oil and gas drilling. Act 13 substituted a statewide uniform standard, replacing a patchwork crazy quilt situation where each town did something different. The state says their rules are uniform, strict and fair–developed by people who know what they’re doing in the complex business of oil and gas drilling. The towns say they know their own towns best and where a well should and should not be drilled. A final outcome to the case is still pending before the PA Supreme Court (see Should the Full 7-Member PA Supreme Court Re-Hear Act 13 Case?).

During the appeals process, South Fayette developed a bit of a persecution complex (see South Fayette, PA Accuses PUC of Persecuting Them over Act 13). The town has been very effective in shutting out drilling (dare we say they’re anti-drilling?). According to MDN’s own Marcellus and Utica Shale Databook series, South Fayette has had zero drilling permit applications filed from at least 2011 to the present. That is, until now…
Read More “South Fayette, PA Gets First Marcellus Permit Application”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot Sells TX & OK Properties – Plows Proceeds into Marcellus
October 18, 2013October 18, 2013

Cabot Oil & Gas is an amazing company. They (currently) drill in a single northeastern Pennsylvania county–Susquehanna County. And in that single county they have 8 of the top 10 producing Marcellus shale wells in the entire state (see PA’s Top 10 Marcellus Shale Wells – Full Details). Cabot produces an amazing 1 billion cubic feet (Bcf) of natural gas per day from their wells in Susquehanna County (see Who’s a Member of the Marcellus “1 Bcf/d” Club?). And get this, they can make money on selling their gas for as low as $1.20 per thousand cubic feet (Mcf). That has to rank them among the best-run, most efficient drillers in the world. No wonder the company, with just 1/10th of the revenues of Chesapeake Energy, is worth more than Chessy (see Corporate Hubris Humbles Chesapeake – Cabot Soars Sure & Steady).

So it shouldn’t surprise you to learn that Cabot has just sold off more (the rest of?) it’s oil and gas properties in West Texas and Oklahoma for $188 million and plans to invest that money in the Marcellus…
Read More “Cabot Sells TX & OK Properties – Plows Proceeds into Marcellus”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Information Lockdown at Heinz Endowments over Vagt Departure
October 18, 2013October 18, 2013

Earlier this week MDN told you about the departure of Robert (“Bobby”) Vagt as president of the Heinz Endowments (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?). It appears that at least one of the “green” board members of the Heinz Endowments (cough *Andre Heinz* cough) wasn’t happy that the family foundation decided to reach across the isle, under Vagt’s leadership, to work with the Marcellus Shale drilling industry on strict certification standards for drillers.

The problem is, no one knows for sure. It’s all still rumor and speculation. Heinz is being super tight-lipped and according to one reporter MDN spoke to, the organization is on “information lockdown” over this issue. The Pittsburgh Tribune-Review writes the following editorial about the situation–an editorial we agree with 100%:
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Atlas Energy | Blue Racer Midstream | Energy Companies | Energy Services | Harrison County | Lycoming County | Marshall County | Ohio | Pennsylvania | West Virginia

Atlas Update: Finding Alternatives to Blue Racer Natrium Plant
October 17, 2013October 17, 2013

Atlas Resource Partners (ARP), a driller working in several plays–including the Marcellus and the Utica–issued a financial and operations update yesterday. Included in the update are details of Atlas’ recent activities in the northeast–number of wells drilled, etc. Pretty standard stuff–the “normal” kind of periodic press release issued by drillers, except…

It’s interesting to MDN that in Atlas’ update they mention, rather prominently, the ongoing issue that Blue Racer Midstream’s Natrium processing plant has been shut down since an explosion and fire occurred on Sept. 21st (see Natrium, WV Fractionation Plant Still Closed After Explosion/Fire). The shut-down is having a significant negative affect on Atlas’ ability to get gas to market. So Atlas, like other drillers in the Ohio Valley area, is seeking alternative sources to process their gas. They’ve located a partial solution and continue to look.

Blue Racer has a growing problem on their hands with the continued shut-down of Natrium if their customers continue to find other solutions…
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Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide PA

Does Chesapeake Deduct PA Act 13 Impact Fee from Royalties?
October 17, 2013October 17, 2013

Does Chesapeake Energy deduct PA’s Act 13 “impact fee” as an expense before paying royalties? The answer depends on whom you ask. Chesapeake says they do not, but at least one of their contracts, reviewed by the National Association of Royalty Owners (NARO), includes the Act 13 fee in the list of deductions.

So, do they or don’t they?…
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Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources Nears 1 Bcf/d of Production in 3Q13
October 17, 2013

Range Resources announced today they are very close to joining the 1 Bcf/d (billion cubic feet per day) Club. Production of natural gas, gas liquids and crude reached an all-time high for Range in the third quarter–960 million cubic feet per day (Mmcf/d), which is a 21% increase from a year ago. Where is all that gas coming from? Mostly the Marcellus Shale.

Here’s the good news from Range:
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Energy Companies | Forest County | Industrywide Issues | Litigation | McKean County | Minard Run Oil | Pennsylvania | Regulation | Warren County

Final Appeal? Court Says Drilling in Allegheny Natl Forest Legal
October 17, 2013

When the federal government digs in its heels and is intent on obstructing justice, it can take a long time to remedy via the courts. But (sometimes) justice does prevail in the end. We now have–hopefully–a final resolution in the ongoing series of cases known as Minard Run Oil v. United States Forest Service. We wrote about this case back in 2011, but it goes back much further, to 2009 (see Drillers Sue US Govt over Allegheny National Forest Delays). As a brief background, the federal government purchased a number of parcels of land in 1923 that became the Allegheny National Forest (ANF) in northwestern Pennsylvania. However, the government did not purchase the mineral rights under most of the land–seems that back in 1923 the government didn’t just print the money it wanted (“quantitative easing” anyone?).

Even though they don’t own the mineral rights, in 2009 the U.S. Forest Service (federal agency managing the ANF) entered into what was an illegal out of court settlement with environmentalist groups stipulating that the National Environmental Policy Act (NEPA) will govern all oil and gas drilling in the ANF. It effectively shut down any new drilling in the forest, denying private citizens the ability to benefit from their private property (mineral) rights. The drilling industry sued and the case has now gone through three appeals. The most recent appeal was heard by the federal U.S. Court of Appeals Third Circuit. The court ruled, once again, in favor of private property rights…
Read More “Final Appeal? Court Says Drilling in Allegheny Natl Forest Legal”
Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Marcellus Credited with 90% of New Jobs in PA 2005-2012
October 17, 2013October 17, 2013

Does Marcellus Shale drilling generate real jobs? You bet it does. Try this statistic on for size: Of all the new jobs created in Pennsylvania from 2005-2012, 90% of them were created by the drilling industry. No, that’s not a misprint. Those numbers come from analysts at Raymond James, a highly respected financial services firm. In addition, new hires in core Marcellus Shale industries were up 35% in the second quarter of 2013 compared to the second quarter of 2010. As one RJ analyst said, “unconventional oil and gas is not just a flash in the pan.” It will be a job-creating engine for decades to come.

When someone tells you drilling doesn’t create jobs, tell them to go fly a kite…
Read More “Marcellus Credited with 90% of New Jobs in PA 2005-2012”
Butler County | Crime | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Washington County

2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme
October 16, 2013October 16, 2013

A month ago MDN told you that one of two landmen accused of stealing mineral rights from unsuspecting landowners by forging signatures and using fake companies had plead guilty (see PA Landman Pleads Guilty to Defrauding Landowners, Off to Jail). His name is William Ray and he’ll not only do three years in the big house, he’ll also pay back over a half million dollars of what he stole.

At the time, Ray’s partner in crime (and the mastermind behind the scheme), Derek Candelore, plead not guilty. Yesterday Candelore plead guilty to one charge of mail fraud…
Read More “2nd Landman Pleads Guilty to Single Count in $2.4M Fraud Scheme”
Bradford County | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Are Marcellus Drilling Regs Killing Conventional Drilling in PA?
October 16, 2013October 16, 2013

A pair of north central PA Republicans from the Pennsylvania House of Representatives along with “hundreds” of independent oil producers are sending a message to PA politicians and regulators: You can’t use the same broad brush you’re using with unconventional shale drilling to paint the traditional conventional drilling in the state. The independents say that new regulations crafted for Marcellus Shale (deep) drilling should not apply to conventional (shallow) drilling and if this ongoing “unfair” situation continues, it will drive conventional drilling in the state, which has been around for 150 years, out of existence.

Do the independents have a point? Are they an “apple” being regulated by unfair and overly strict “orange” standards? Or to change up the metaphors, is this a case of the buggy whip industry grumbling about those newfangled automobiles?…
Read More “Are Marcellus Drilling Regs Killing Conventional Drilling in PA?”