Statewide PA

Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus
October 31, 2013October 31, 2013

Range Resources, the very first driller to sink a well into the Marcellus, is also perhaps the biggest cheerleader and booster of the Marcellus. And why not? The Marcellus has been very good to Range.

Most of Range Resources’ wells and acreage is located in southwestern PA, in the “wet gas” area of the play. On a call with analysts yesterday discussing third quarter results, Range officials, including CEO Jeff Ventura, effused about the Marcellus, saying Range has enough acreage and opportunity in the Marcellus to allow them to continue drilling new wells for at least another 20 years. That is, they’ve hit the bull’s-eye (our words) in the Marcellus…
Read More “Range Resources 3Q13 Investor Call: Bull’s-eye in the Marcellus”
Access Midstream Partners | Cardinal Gas Services | Economic Impact | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | Utica East Ohio Midstream | West Virginia

Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015
October 31, 2013October 31, 2013

Access Midstream Partners is heavily involved with the pipeline/processing plant infrastructure buildout happening in both the Marcellus and Utica Shale region. Access is the lead company in the joint venture known as Cardinal Gas Services (the other partners being TOTAL and EnerVest), and an important partner in Utica East Ohio Buckeye (along with M3 Midstream and EnerVest). According to Access CEO Mike Stice on an investors call yesterday, his company’s total investment in the Marcellus Shale by the end of 2015 will be $1.8 billion, and the total investment in the Utica will be $2 billion.

A combined $3.8 billion investment in the northeast spanning 2012-2015–from one company. Simply astonishing! Here’s a few highlights from Stice’s talk yesterday…
Read More “Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015”
Energy Companies | Ethane | Exporting | Hydraulic Fracturing | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Statewide PA | Washington County

Range Resources’ Top 10 Wet Gas Wells, New Company Presentation
October 30, 2013October 30, 2013

Yesterday Range Resources released their financial and operations update for third quarter 2013 (see our companion story from today). Nestled in that update is reference to a new company presentation released yesterday as well, available on the Range website. MDN downloaded it (full copy embedded below) and wow! What a presentation it is. This sucker is loaded with useful charts, maps, bullet points and more. Range has done the industry (and their investors) a great service with this presentation.

Below we will highlight some of our favorite “don’t miss it” slides from the presentation, so you know which ones to zero in on right away. However, the one slide many will want to view first is the list of Range’s Top 10 Liquids Rich (“wet gas”) wells. That slide lists the wells and their locations (hint: they’re all found in a single PA county), initial production levels, production mix (how much oil, NGLs, gas), lateral length, and number of frac stages. With lots of maps and lots of charts, here are some of our favorites, including the Top 10 Wells slide:
Read More “Range Resources’ Top 10 Wet Gas Wells, New Company Presentation”
Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA

Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%
October 30, 2013October 30, 2013

Range Resources, the heavyweight Marcellus driller that was the very first company to drill a Marcellus well (back in 2004), continues the flurry of third quarter updates with their own yesterday. Range reports that revenues (or cash flow) were up 29% vs one year ago, costs were down 12% vs one year ago, and the Marcellus was their date to the ball and they’re still dancing with her. They also report record production of 960 million cubic feet per day (Mmcf/d)–getting close the one billion cubic feet per day (Bcf/d) mark.

Range’s most interesting comments (to MDN) are about the Mariner West Project, an ethane pipeline that runs from the Marcellus all the way to Sarnia, Canada. Range is one of the main customers for Mariner West which is due to be “fully operational” in November. However, Range said in early September their first delivery of ethane had already reached Sarnia, which made us scratch our heads (see Sunoco Says Mariner West Opening Soon, but Range Already Using??). After reading Range’s statements below, we now understand that Sunoco Logistics has been testing the new pipeline and it will be fully up to speed sometime in November…
Read More “Range Resources 3Q13: Nearing 1 Bcf/d, Rev Up 29%, Costs Down 12%”
CONSOL Energy | Economic Impact | Energy Companies | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling
October 29, 2013October 29, 2013

CONSOL Energy continues what seems to be its inevitable transformation from being a coal mining company to being a natural gas drilling company. The federal government (EPA) is killing the coal industry by killing electric power generating plants that run on coal with onerous new “pollution” standards. It is intentional–Obama’s EPA wants to kill coal. CONSOL is feeling the heat–losing more and more customers for their coal. And so CONSOL has announced they’re selling five more of their coal mines located in West Virginia and Pennsylvania and using the money to expand their natural gas drilling operation.

In fact, CONSOL says it plans to invest an eye-popping $24 billion in West Virginia and Pennsylvania natural gas drilling over the next 10 years. By comparison, MDN found in the most recent volume of the Marcellus and Utica Shale Databook that announced midstream infrastructure projects in the northeast add up to a $40 billion investment. CONSOL, a single driller, will spend more than half that amount on new drilling alone! These are truly staggering numbers and very good news for the states involved. Too bad New York (where MDN is located) is seeing NONE of this investment…
Read More “CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling”
Allegheny County | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

She Speaks! Teresa Heinz Kerry Talks re Endowments Firings, CSSD
October 28, 2013October 28, 2013

The autocratic tendencies of liberals are amusing (and scary) to watch. Case in point: Teresa Heinz Kerry, chairwoman of the Heinz Endowments. Kerry finally addressed the issue of the Heinz Endowments firing three high profile employees, including the Endowments’ president Bobby Vagt (see Bobby Vagt Out as Pres of Heinz Endowments – Fracking Connection?).

While refusing to be completely forthcoming, Kerry was forthcoming enough to confirm what we already suspected: the Heinz boys and mommy dearest didn’t like the Endowments getting into bed with the Center for Sustainable Shale Development (CSSD). Pay close attention to what Kerry does and does not say in the following article. MDN snarky commentary included [in brackets]…
Read More “She Speaks! Teresa Heinz Kerry Talks re Endowments Firings, CSSD”
Health Impacts | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Doctor’s Act 13 Lawsuit Tossed Out, Judge Says No “Standing”
October 28, 2013October 28, 2013

Last Wednesday a Pennsylvania federal judge ruled against a doctor who sued the state over it’s new Act 13 law (passed in 2012). The new law requires doctors to sign a confidentiality agreement before discussing chemicals workers may have been exposed to as part of the drilling (specifically fracking) process in shale drilling.

U.S. District Judge A. Richard Caputo dismissed the lawsuit filed by Dr. Alfonso Rodriguez saying he hadn’t proven he had been harmed by the law (i.e., no “standing”)…
Read More “PA Doctor’s Act 13 Lawsuit Tossed Out, Judge Says No “Standing””
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?”
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”
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”
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”
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?”
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:
Read More “Range Resources Nears 1 Bcf/d of Production in 3Q13”