Statewide PA

Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M
September 3, 2013September 3, 2013

In July, MDN told you about a class action lawsuit by some Pennsylvania landowners against Chesapeake Energy over the issue of deducting certain costs from post-production when calculating royalties–costs that the landowners say are not listed in the original lease and for which Chessy does not have the right to deduct (see Some PA Landowners Mull Decision to Sue Chesapeake over Royalties). A number of landowners joined the class action lawsuit. The lawyers worked feverishly and both sides have now settled.

Chesapeake will pay $7.5 million to settle the lawsuit, to be share with the lawyers (of course) and then amongst the landowners. Apparently the settlement will benefit “several thousand leaseholders” who have the option to either accept the settlement or continue on their own by filing their own lawsuit…
Read More “Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M”
Industrywide Issues | Jobs | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica Industry Looking to Hire More Locals
September 3, 2013September 3, 2013

Do you live in Pennsylvania, Ohio or West Virginia (or perhaps the Southern Tier of sad New York) and want a job working for the growing shale drilling industry? According to The Motley Fool, your chances of landing a job in the Marcellus/Utica industry have never been better. The Fool even has a few suggestions of companies looking to hire…
Read More “Marcellus/Utica Industry Looking to Hire More Locals”
Access Midstream Partners | Chief Oil & Gas | Electrical Generation | Energy Companies | Energy Services | Industrywide Issues | Pennsylvania | PVR Midstream | Statewide PA

Chief Strikes Deal to Provide Marcellus Gas for Electric Plants
August 29, 2013August 29, 2013

Chief Oil & Gas announced yesterday they have crafted a deal to supply some of the Marcellus Shale gas they produce in PA to IMG Midstream. You may think IMG is a pipeline company because of the word “midstream” in its name–but you would be wrong. IMG Midstream (formerly known as Iron Mountain Generation) develops, owns, and operates small-scale electric generation plants powered by natural gas. As part of the new deal, Chief will use pipelines from Access Midstream and PVR Midstream to get the gas from their wells to IMG’s new electric plants (to be built) in northeastern PA.

With that explanation to clear up who the players are, here’s the (somewhat confusing) press release announcing the deal…
Read More “Chief Strikes Deal to Provide Marcellus Gas for Electric Plants”
Allegheny County | Chesapeake Energy | CNX Resources | Energy Companies | Pennsylvania | Statewide PA

Marcellus Shale Coalition Gets New Chairman of the Board
August 29, 2013August 29, 2013

It appears that Chesapeake CEO Doug Lawler’s massive firings throughout the company (no doubt demanded by corporate raider and Chessy board member Carl Ichan) have not only affected Chesapeake itself, but also the Marcellus Shale Coalition (MSC)–the premier group representing the drilling industry in Pennsylvania and the entire Marcellus region.

The chairman of the board of directors at the MSC had been David Spigelmyer, VP of government relations for Chesapeake. Spigelmyer is now gone from Chesapeake and gone from the board of the MSC. In his place, the board has appointed the current vice chairman, Randy Albert, COO of CNX Gas, to be chairman until Spigelmyer’s term was due to end in November…
Read More “Marcellus Shale Coalition Gets New Chairman of the Board”
Industrywide Issues | Pennsylvania | Research | Statewide PA

Anti-Drillers Smear PA DEP Over Delayed Global Warming Report
August 28, 2013August 28, 2013

A Pennsylvania state report on the impacts of the mythical concept of human-induced global warming on residents of the state is a year and a half late. Boo hoo. Big deal. Aren’t there enough of these kinds of “reports” circulating already? Why is another one needed? Apparently anti-drillers in PA and at the NPR reporters at StateImpact Pennsylvania want to see it published. They also want it to contain a reference to the totally debunked and discredited “study” by Cornell professors Robert Howarth and Anthony Ingraffea. You know, the study that laughably says burning coal is better for the environment than natural gas. MIT later put that whopper to rest (see New MIT Study on Fugitive Methane Discredits Cornell Study).

But let’s not let real science get in the way here! Anti-drilling groups like PennFuture want Howarth’s discredited “research” to be included in the final report. When someone from the PA DEP dared to say it ought to be removed, well, the antis had a cow. PennFuture went on a fishing expedition and obtained internal emails and drafts of the report and leaked it to sympathetic StateImpact reporters. It’s now time to crucify the DEP official who wanted the holy words of Bobby & Tony removed…
Read More “Anti-Drillers Smear PA DEP Over Delayed Global Warming Report”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

New Marcellus Surface Regulations Coming for PA Drillers
August 28, 2013August 28, 2013

In February 2012, Pennsylvania passed and Gov. Tom Corbett signed the Act 13 legislation into law–the first new legislation to address shale drilling in the state (see Gov. Corbett Signs New Marcellus Drilling Law). Among the provisions in the new law was an instruction (and permission) for the Environmental Quality Board (EQB), the rulemaking body of the Pennsylvania Department of Environmental Protection, to craft new regulations for drilling. The EQB wasted no time in crafting new rules for the subsurface portion of drilling (see Rewrite of 1984 PA Oil and Gas Act Underway).

The second part of the EQB’s charge is now underway. Yesterday the EQB approved and released (for public comment) new regulations aimed at surface activities associated with natural gas drilling (a summary of the new rules is embedded below, along with the full text of the proposed regulations). This new round of regulations deals with protecting public resources like parks and forests, deals with orphaned and abandoned well identification, institutes new containment rules (for fresh water and wastewater), and firms up protection of water resources…
Read More “New Marcellus Surface Regulations Coming for PA Drillers”
Pennsylvania | Statewide PA | Statewide WV | West Virginia

Marcellus Reshuffle? EIA Says WV/SWPA Luring Rigs Away from NEPA
August 27, 2013August 27, 2013

According to the brains at the U.S. Energy Information Administration (EIA)–and we say “brains” in a very complimentary way–the northern panhandle of West Virginia and southwestern Pennsylvania together have formed an integrated “wet gas” drilling region that is luring drilling rigs away from the highly productive dry gas area of northeastern PA. Here is their analysis and reasoning, along with some nifty charts:
Read More “Marcellus Reshuffle? EIA Says WV/SWPA Luring Rigs Away from NEPA”
Chevron | Energy Companies | Fayette County | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Chevron Wins Right to Build Freshwater Pond for Fracking in PA
August 27, 2013August 27, 2013

Last week the Pennsylvania Superior Court upheld a lower court ruling in favor of Marcellus Shale driller Chevron, declaring that Chevron has the right to construct a pond (“impoundment”) to hold fresh water used for fracking. The landowners in question (Mr. & Mrs. Humberston) did not want the pond constructed on 11 acres of their land but since the lease they signed did not specifically limit it, and since having lots of fresh water to frack with is a requirement for drilling (a reasonable expectation), the court ruled Chevron was within its rights to construct the pond…
Read More “Chevron Wins Right to Build Freshwater Pond for Fracking in PA”
Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

CSSD Says First Marcellus Certifications Coming Later this Year
August 23, 2013August 23, 2013

MDN previously told you about a new, independent group–a cooperative between the drilling industry and environmentalists–called the Center for Sustainable Shale Development, or CSSD (see Important: Drillers & Enviros Form New Group, Launch Cert Program). Members of the group on both sides have taken heat for working together to create very strict standards for Marcellus and Utica Shale drillers (see Eco Groups Shun EDF over Membership in Sustainable Shale Center).

The CSSD created a list of 15 standards they want drillers to conform to–some of the standards very costly, especially to small drillers. The group is moving forward with their plans and intends to begin certifying drillers “later this year”…
Read More “CSSD Says First Marcellus Certifications Coming Later this Year”
Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Consultant: Retooling PGW LNG Terminal for Exports Problematic
August 23, 2013August 23, 2013

MDN previously told you that the 176 year-old Philadelphia Gas Works (PGW) natural gas utility company went on the auction block in July with the aim of privatizing it (see Phila. Gas Works Goes on Auction Block – Marcellus Key in Sale?). At the time, it seemed like one of the keys to a sale would be converting an existing liquefied natural gas (LNG) facility owned and operated by PGW into an export facility for exporting Marcellus Shale gas.

However, according to a confidential report issued earlier this year by a PGW consultant, such a scenario would not be all that attractive for a potential buyer. The cost to convert the facility would be far more than the existing value of the entire company, plus there are real estate issues to contend with…
Read More “Consultant: Retooling PGW LNG Terminal for Exports Problematic”
Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Supply Chain | West Virginia

MSC Releases Annual Marcellus Job/Workforce Survey
August 22, 2013August 22, 2013

What types of companies in the Marcellus/Utica Shale region are hiring? What types of jobs are they hiring for? And where are they hiring? Those are just some of the answers you’ll find in the latest annual membership survey from the Marcellus Shale Coalition (copy of survey results embedded below). In addition to those questions, the survey also addresses which functions and services drillers outsourced (pay attention supply chain companies!), and which positions were hardest to fill (pay attention job seekers!).

The press release announcing and summarizing the survey results:
Read More “MSC Releases Annual Marcellus Job/Workforce Survey”
Industrywide Issues | Landfills | Pennsylvania | Statewide PA

Revisiting the Radioactive Shale Cutting Issue in PA
August 22, 2013August 22, 2013

Because of ongoing concerns about the radioactivity of leftover rock and dirt (“shale cuttings”) being dumped at PA landfills, the state Dept. of Environmental Protection (DEP) began a 12-14 month study of the issue this past January (see PA DEP Announces New Study of Radiation in Shale Drilling). A new update on their efforts and on the radioactive waste issue appears in today’s Pittsburgh Post-Gazette. The article points out the dramatic increase in radioactive alarms going off at landfills over Marcellus waste shipments (happened nearly 1,000 times last year). However, the article also provides much-needed context and points out the radiation detected is minuscule because the detectors are so finely tuned to detect medical waste, and that in reality most of the time there is no issue or cause for concern.

The article begins this way:
Read More “Revisiting the Radioactive Shale Cutting Issue in PA”
Pennsylvania | Statewide PA

2nd High-Level Defection from PA DEP: Kevin Sunday Joins PR Firm
August 22, 2013August 22, 2013

A second high-level defection from the Pennsylvania Dept. of Environmental Protection (DEP). In March, then-Sec. of the DEP Michael Krancer announced he would leave the DEP and return to private law practice (see Developing… PA DEP Sec. Krancer Resigns). Krancer has been gone since April 15th. Now, a second prominent DEP official–deputy press secretary Kevin Sunday–has left too.

Harrisburg PR firm Quantum Communications announced yesterday that Sunday has joined their company and will “help lead” the “growing energy practice” at Quantum…
Read More “2nd High-Level Defection from PA DEP: Kevin Sunday Joins PR Firm”
Pennsylvania | Statewide PA

Pro-Drilling PA Gov. Tom Corbett Applauded by National GOP
August 20, 2013August 20, 2013

Pennsylvania Gov. Tom Corbett, strongly pro-drilling, was the star of the show at the Republican National Committee meeting in Boston last Thursday where he gave a speech at a gathering that included so-called Republicans like NJ Gov. Chris Christie and MA Senator Scott Brown–RINOs with much more national name recognition. Corbett got repeated applause for reducing the bloated size of government in PA (cleaning up the mess left by Ed Rendell) and for ramping up Marcellus Shale drilling.

Pennsylvania GOP Chairman Rob Gleason said New York wants Corbett to come make a speech in the Empire State to show the apparently clueless (our words) Cuomo how to get it done when it comes to drilling. Here’s what Gleason said about Corbett’s Boston speech, about his conversation with the head of the GOP in NY, and about the controversy that has erupted over the PA Democrats’ idiotic vote to “temporarily” ban drilling statewide:
Read More “Pro-Drilling PA Gov. Tom Corbett Applauded by National GOP”
Pennsylvania | Statewide PA

PA NatGas Production up 58.5% to 1.42 Tcf (!)
August 20, 2013August 20, 2013

The top-notch editors at NGI’s Shale Daily have put together a must-see report on Marcellus Shale production in PA. Natural gas production in PA was up an astonishing 58.5% in the first six months of this year–to a new high of 1.42 trillion cubic feet. The report identifies the state’s top-producing well (in Bradford County, find out which driller and how much gas it produced in the report), and includes a handy chart showing production by county, breaking out methane, condensate and oil production.

The article/report begins this way:
Read More “PA NatGas Production up 58.5% to 1.42 Tcf (!)”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Democrats: Internal Fighting Over Vote to Ban Shale Drilling
August 19, 2013August 19, 2013

Well well, finally a mainstream media outlet that is talking about the elephant (or in this case the donkey) sitting in the room that’s so big, it can no longer be ignored–i.e. the firestorm that has erupted inside the Pennsylvania Democrat Party over their idiotic vote in June to support a statewide, ongoing moratorium/ban of Marcellus Shale drilling (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). MDN previously told you about the building dissension within elected Democrat ranks over the vote (see 18 PA House Democrats Dissent from Party’s Vote for Frack Moratorium).

We wouldn’t call the internal squabbling in the Democrat Party a full-blown internecine war–yet. However, it’s getting there, according to an article printed over the weekend in the Harrisburg Patriot-News. Be forewarned that the Patriot-News article is written from a Democrat apologist viewpoint that tends to downplay how serious this issue is within Democrat ranks–but they can’t cover up the truth. The article is more of a begrudging, feet-dragging “guess we have to write about this” article than a gleeful “screw the Republicans again” article they would rather write. Keep that in mind as you read:
Read More “PA Democrats: Internal Fighting Over Vote to Ban Shale Drilling”