Pennsylvania

Crime | Industrywide Issues | Pennsylvania | Statewide PA

Domestic Terrorism on the Rise in PA Marcellus?
October 25, 2013October 25, 2013

Enough is enough. We’ve always found anti-drillers to be misguided, irritating, relentless and yes, sometimes dumb (see today’s companion story about protesters in Canton, OH)–but anti-drillers aren’t usually terrorists. However, for some, their misguided and twisted zeal turns into something dangerous. A very disturbing story from the Harrisburg Patriot-News published yesterday says over the past 14 months in 4 different PA counties, “hazardous devices, including pipe bombs” have been discovered near shale drilling and pipeline sites. If that’s not domestic terrorism, we don’t know what is–although the FBI is not yet willing to call it that.

So far only one person has admitted his guilt in making two pipe bombs that failed to detonate. No one else has come forward to claim responsibility…
Read More “Domestic Terrorism on the Rise in PA Marcellus?”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Susquehanna County

Cabot 3Q13: Production Up 61%, 4 Wells Produced Avg 27.5 Mmcf/d
October 25, 2013October 27, 2013

Quarterly reporting season continues. Yesterday Cabot Oil & Gas, one of our favorite Marcellus drillers, reported that production for 3Q13 averaged an amazing 107.1 billion cubic feet for the quarter. That’s a 61% increase over the same time last year. Truly astonishing. Also of interest, during 3Q13 Cabot drilled a pad with four wells in Susquehanna County, PA with 109 total frac stages across the four wells. Those combined four wells produced an initial production rate of 110 million cubic feet per day (Mmcf/d)–an average of 27.5 Mmcf/d per well! Just unheard-of rates.

Here’s Cabot’s 3Q13 financial and operations update from yesterday, with details of the Marcellus drilling operations in Susquehanna County, PA:
Read More “Cabot 3Q13: Production Up 61%, 4 Wells Produced Avg 27.5 Mmcf/d”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

WSJ Says PA Cracker Plant May Not Happen After All
October 24, 2013October 24, 2013

It seems like MDN has been writing about Shell’s proposed $2 billion ethane cracker plant for like, ever. You can scour our archive of stories mentioning the Shell cracker plant. We’ve chronicled the ups and downs. Where is this important project at right now?

According to the Wall Street Journal, the prospects that Shell will build an ethane cracker plant in Pennsylvania have now “faded”…
Read More “WSJ Says PA Cracker Plant May Not Happen After All”
Lease & Royalty Payments | Pennsylvania | Statewide PA | Susquehanna County

PA Drillers Need to be Better Communicators
October 24, 2013October 24, 2013

Not everyone wants their land to be drilled for natural gas–even in Susquehanna County, PA where methane has been seeping out of the ground for 150 years. We respect that. In fact, we believe property rights are sacrosanct–if you don’t want drilling, you shouldn’t be forced to allow it. And conversely, those who want to lease their land and see drilling should be allowed to do so. Their neighbors should not be able to force them to abandon their rights either. Works both ways.

A story from Susquehanna County illustrates the tension landowners sometimes face in a decision about whether or not to lease. It also illustrates the sometimes confusing process that surrounds drilling a new gas well. One couple, not yet leased, learned (by accident) of a permit to drill a well on their neighbor’s property by Talisman Energy. There was nothing underhanded or wrong about Talisman’s application for a permit. However, this case points out the sometimes disjointed process landowners face in PA when it comes to leasing and drilling, and how drillers need to go the extra mile in communicating with them…
Read More “PA Drillers Need to be Better Communicators”
Economic Impact | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Regulation | Statewide PA

Philly Conference: Dramatic Ramp-up & Challenges in PA Midstream
October 24, 2013October 24, 2013

A conference in Philadelphia yesterday, hosted by the law firm Blank Rome and by engineering firm Hull and Associates, focused on the importance of the midstream–pipelines and processing plants. And for good reason–there’s an incredible amount of money being spent in the midstream sector. Here’s what grabbed our attention about the conference: One of the speakers quoted numbers from Oil and Gas Journal that say spending on pipelines across the U.S. was $8.6 billion last year, in 2012–but this year, that number is zooming to $38 billion!

We will add our own number to that mentioned at yesterday’s conference. MDN has just published Volume 2 of the Marcellus and Utica Shale Databook. In our new volume we compiled a comprehensive list of 111 midstream and infrastructure projects that either already are being built or have been announced. MDN found that from 2013 and spanning the next 10-15 years, announced midstream projects in the Marcellus/Utica region will top $40 billion of investment! That’s investment in just the Marcellus/Utica…
Read More “Philly Conference: Dramatic Ramp-up & Challenges in PA Midstream”
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?…
Read More “National Fuel Gas Production Jumps 45% in FY13”
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…
Read More “Michigan Driller Walks Away in Frustration from SE PA Leases”
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…
Read More “Back from the Chesapeake Dead: David Spigelmyer Takes Helm at MSC”
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…
Read More “Seneca Resources Reports Production Up 35% Thanks to Marcellus”
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…
Read More “Central PA Counties Cooperate on Infrastructure for More Gas Use”
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…
Read More “End of an Era? Sautner’s Dimock Home Leveled, Property Sold”
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%:
Read More “Information Lockdown at Heinz Endowments over Vagt Departure”
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…
Read More “Atlas Update: Finding Alternatives to Blue Racer Natrium Plant”
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?…
Read More “Does Chesapeake Deduct PA Act 13 Impact Fee from Royalties?”