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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Pennsylvania | Statewide OH | Statewide PA

Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future
October 1, 2013October 1, 2013

Gary Evans, CEO of Magnum Hunter, presented at the IPAA Oil and Gas Investment Symposium yesterday in San Francisco. He did a deep dive into MH’s Marcellus and Utica Shale operations and plans moving forward. Evans said the company now owns 490,000 net acres in the northeast (Appalachia) with 81,000 net acres in the Marcellus Shale and 80,000 net acres in the Utica Shale. They have investments and operations in both drilling and in the midstream (pipelines) segment via subsidiary Eureka Hunter.

Below are Evans’ comments from yesterday along with a PowerPoint presentation which we believe is likely the one he used (or very similar to the one he used). Slides #13-#27 cover the Marcellus and Utica–well worth your time to review, some great maps and charts. Also included, a nifty picture of MH’s new robotic drilling rig (slide #26)…
Read More “Magnum Hunter CEO Gary Evans Charts a Marcellus/Utica Future”
Energy Services | Industrywide Issues | Pennsylvania | Philadelphia Energy Solutions | Pipelines | Statewide PA | Sunoco Logistics

A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly
September 30, 2013

Problem: How can Philadelphia benefit from cheap, abundant Marcellus Shale natural gas being produced in such large quantities in Pennsylvania that the state can’t use it all and is now a net exporter? Yes, as Drexel president John Fry said at Shale Insight last week, Philly can provide education and research to assist the shale revolution (see Shale Insight 2013: Final Wrap-Up, The Big Surprise). But aside from education and research, how can Philly realize the tangible benefits of low-cost shale gas? Answer: Install a big, fat pipeline into Philly to deliver cheap Marcellus Shale gas to residents and businesses that can use it.

New Problem: Where do you run a new pipeline in a densely populated city like Philly? New Answer: Under the Delaware River (?!?!)…
Read More “A Novel Approach to Deliver Cheap Marcellus Shale Gas to Philly”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP’s O&G Division Gets High Marks from Independent Review
September 30, 2013September 30, 2013

An independent, third-party peer review organization–State Review of Oil and Natural Gas Environmental Regulations, Inc.–has given the Pennsylvania Dept. of Environmental Protection’s (DEP) Office of Oil and Gas Management a very close examination. What did they find? They found it to be “proficient” and “ready to address the increase in oil and gas operations in Pennsylvania.” The review gave the DEP high marks for the actions they’ve taken (and new regulations instituted) over the past two years under Gov. Tom Corbett.

DEP Acting Sec. Chris Abruzzo said this independent review proves that PA’s world class shale drilling is matched by world class oil and gas management and regulations…
Read More “PA DEP’s O&G Division Gets High Marks from Independent Review”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA | XTO

Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo
September 27, 2013September 27, 2013

MDN became aware that newly nominated (and currently Acting) Secretary of the PA Dept. of Environmental Protection, Chris Abruzzo, would be attending Shale Insight 2013. So we requested an interview with the Secretary, and he obliged! To our knowledge, we were the only media interview he granted during a brief walking around the show visit on Wednesday.

MDN editor Jim Willis asked Sec. Abruzzo some tough questions, including his take on the PA Attorney General’s criminal lawsuit against XTO (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO); his biggest challenge since holding the office in April; how he responds to the charge that the DEP is sometimes too cozy with the drilling industry; an update on the DEP’s study of air quality near drilling sites and compressor stations (see DEP Marcellus Air Study in SW PA Extended Extra Half Year); and his response to John Hanger (former Secretary of the DEP) about his remarks that Abruzzo’s appointment was “bizarre and irresponsible”…
Read More “Exclusive: MDN Interviews PA DEP Sec. Chris Abruzzo”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Soil | Statewide PA | Wastewater

Pittsburgh Water-Testing Lab’s Certification Pulled, $60K Fine
September 27, 2013September 27, 2013

We don’t know if any Marcellus drillers in Pennsylvania were previously using Pittsburgh-based Microbac Laboratories to test water or soil for drilling purposes–but we do know they aren’t using them now. The PA Dept. of Environmental Protection (DEP) investigated Microbac and found 50 violations at their Baltimore, Maryland lab. Microbac has voluntarily relinquished its accreditation and will pay a $60,000 fine. Ouch. They will also pay to have an independent third-party audit (i.e. someone will come in and tell them what they’re doing wrong)…
Read More “Pittsburgh Water-Testing Lab’s Certification Pulled, $60K Fine”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Meetings | Pennsylvania | Statewide PA

Shale Insight Philadelphia: Day One (Tuesday)
September 25, 2013September 25, 2013

MDN editor Jim Willis is in Philadelphia for the next few days attending the Marcellus Shale Coalition’s Shale Insight event. Jim is taking copious notes, as he does when visiting such events–so you’ll get to read about it in the coming days. Yesterday (Tuesday) was the “pre-conference” day. Of special interest was the Technology Showcase where established and up-and-coming companies shared their technologies for treating water, dealing with silica dust and a variety of other applications. If you’re “into shale,” it was fascinating.

Rather than recount it all for you right now, we’ll share a good story (very fair and balanced, surprisingly) written by the Philadelphia Inquirer who had a reporter on hand. The write-up does a good job of recounting the Technology Showcase, and in forecasting the coming protest from anti-drillers. One thing we can tell you–security is really, really tight at the Philadelphia Convention Center. They clearly believe there’s going to be a sizable crowd of antis parading out front…
Read More “Shale Insight Philadelphia: Day One (Tuesday)”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PennEnvironment Supports PA Dem Frack Ban Bill, Gins Up Report
September 25, 2013September 26, 2013

Editor’s Correction: We slipped up! The original version of this story contained a headline and introduction (below) that said PennFuture was the organization that issued the report. It was not. It was PennEnvironment. Our sincere apologies to PennFuture.

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In a pathetic attempt to give political cover to their anti-drilling collaborators in the PA legislature, yesterday anti-drilling group ~~PennFuture~~ PennEnvironment issued a so-called report that demands that Pennsylvania turn the lights out on fracking for shale gas–at least for now and the foreseeable future–until…we don’t know, just until. Until they say so.

Last week MDN told you about PA Democrats who decided to leap over the cliff hoping a net (of public support) would appear by introducing legislation to ban fracking in the state (see PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill). Thunk. No net appeared and the Dems now face annihilation at the next election. So ~~PennFuture~~ PennEnvironment is attempting to throw out a lifeline with a ginned up “report” that supports a loony frack ban…
Read More “PennEnvironment Supports PA Dem Frack Ban Bill, Gins Up Report”
Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter
September 24, 2013September 23, 2013

Chesapeake Energy recently settled a lawsuit with Pennsylvania landowners in which they agree to pay (a pitifully small) $7.5 million to landowners after shorting them on royalty payments (see Chesapeake Settles PA Royalty Lawsuit for Pittance: $7.5M). The National Association of Royalty Owners Pennsylvania chapter is telling landowners to pay “very close attention” to the settlement letter when it comes.

The settlement letter may have much broader implications than just getting a check for a few bucks from Chesapeake. It may set the rules for how your future royalties will be calculated…
Read More “Lawyers Say Don’t Ignore Chesapeake’s PA Lawsuit Settlement Letter”
Electrical Generation | Industrywide Issues | Pennsylvania | Statewide PA

PA Electric Generation Plant Will Get its Own Marcellus Well
September 24, 2013September 23, 2013

GEI Global Energy Corp announced yesterday they have signed a letter of intent (LOI) with Owl Eco Group to build a 100 megawatt electric generation plant in western Pennsylvania that runs on Marcellus Shale gas.

Not only will this be a massive project taking several years and costing $470 million to build, but GEI says the plan calls for the power plant to get its very own Marcellus Shale well drilled to supply it. Smart…
Read More “PA Electric Generation Plant Will Get its Own Marcellus Well”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Vertical/Shallow Gas Wells in PA Try Going Horizontal
September 23, 2013September 23, 2013

A fascinating story in Sunday’s Pittsburgh Post-Gazette about a developing trend in Pennsylvania’s gas (and oil) fields–the trend of smaller drillers and even some larger drillers who are now targeting shallow rock layers with horizontal drilling. Vertical or conventional natural gas drilling produces a lot less gas than deeper unconventional/horizontal drilling. A LOT less. So how can “mom and pop” vertical drillers compete against the big boys? By going horizontal too.

Seems that some vertical drillers are giving horizontal drilling in their existing vertical wells a try. Instead of drilling down 5,000 feet to the Marcellus, they’re drilling down only 2,000 feet before turning the bit horizontal. The rock layers they’re targeting won’t be anywhere near as productive as the Marcellus–but hey, if you can goose production by 5-10X that of a traditional vertical-only well, it’s very profitable for a tiny fraction of the cost it takes to drill a Marcellus well. Thing is, we won’t know just how productive (or profitable) until next year because these shallower wells only self-report annually…
Read More “Vertical/Shallow Gas Wells in PA Try Going Horizontal”
Pennsylvania | Statewide PA

No More “Acting” for Abruzzo – Nominated as Secretary PA DEP
September 23, 2013September 23, 2013

Congratulations to Chris Abruzzo, Acting Secretary of the PA Dept. of Environmental Protection (DEP). Gov. Tom Corbett has just nominated Abruzzo to permanently fill the role as Secretary of the DEP. Abruzzo had big shoes to fill after the departure of Michael Krancer (see Developing… PA DEP Sec. Krancer Resigns).

When Abruzzo was appointed Acting Secretary this past spring, former DEP Sec. John Hanger, a Democrat, blasted his appointment by Corbett as “bizarre and irresponsible” (see Former PA DEP Sec. Hanger Blasts Interim Replacement for Krancer). Undeterred by such criticism, Abruzzo has done an outstanding job over the past six months (see PA Acting Sec of DEP Making his Agency a “Problem-Solver”). Abruzzo’s problem-solving approach has now been duly rewarded with a promotion…
Read More “No More “Acting” for Abruzzo – Nominated as Secretary PA DEP”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

3 New Bills Would Change PA’s 1979 Oil & Gas Lease Act
September 20, 2013September 20, 2013

On Monday, three new bills were introduced into the Pennsylvania House of Representatives that, if passed, will update the state’s 1979 Oil and Gas Lease Act. Two of the new bills were introduced by anti-drilling Rep. Jesse White–he of fake ID shame (see PA Rep. White Says Fake IDs were “Error in Judgment”).

A quick run-down on the proposed new bills and what they do:
Read More “3 New Bills Would Change PA’s 1979 Oil & Gas Lease Act”
Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

UGI to Invest $1.2B to Upgrade Pipelines in PA to Deliver NatGas
September 20, 2013September 20, 2013

UGI is Pennsylvania’s largest natural gas distributing utility serving more than 586,000 natural gas customers in 45 counties. Along with that many customers comes a lot of underground pipelines–some of which need to be replaced. So UGI is on a quest to hire at least 100 new full-time workers to help replace them. They plan to spend $1.2 billion on the project to upgrade their infrastructure in PA.

So what does UGI’s new pipeline replacement project have to do with the Marcellus Shale?…
Read More “UGI to Invest $1.2B to Upgrade Pipelines in PA to Deliver NatGas”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill
September 19, 2013September 19, 2013

Stupendously stupid and truly amazing, some Pennsylvania Democrats continue to push a statewide “open-ended” moratorium on shale drilling (in essence a ban). The party voted to adopt a ban as their official position at the statewide meeting in June (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). Now, Democrat elected representatives have introduced a bill to do just that.

PA State Senator Jim Ferlo (D-Allegheny) has just introduced Senate Bill 1100 which would institute an immediate ban (they call it a moratorium) on issuing new permits to drill until a 7-member panel can study it for “at least three to four years” and make a pronouncement about whether or not fracking is safe. Talk about insanity…
Read More “PA Dems Go Over the Cliff – Introduce Statewide Frack Ban Bill”
Lease & Royalty Payments | Pennsylvania | Statewide PA

PA Game Comm. Head Not Afraid of Gas Leasing Ethics Investigation
September 19, 2013September 19, 2013

A month ago MDN highlighted the story of potential double-dipping by the director for the Pennsylvania Game Commission, William A. Capouillez, who moonlights as a consultant for landowners leasing their land for oil and gas development–sometimes signing deals with the same companies who do business with his agency (see PA Director of Game Commission Double-Dipping with Gas Leases?).

The pressure on Capouillez continues. An article in today’s Philadelphia Inquirer announces that State Rep. Daryl D. Metcalfe (Republican from Butler, PA), who is the chairman of the House Committee on State Government, has asked the State Ethics Commission to investigate his activities. Capouillez’s response? Bring it on. He says he hasn’t taken on new clients for his moonlighting job in three years and has done nothing wrong…
Read More “PA Game Comm. Head Not Afraid of Gas Leasing Ethics Investigation”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Coming Soon: PA Drillers to Pay 56% More for Marcellus Permits
September 18, 2013September 18, 2013

Looks like permit fees for PA drillers are about to go up. The PA Environmental Quality Board proposed increasing the fee in a filing last week.

If adopted as proposed, the permit fee for an unconventional horizontal shale well will go from $3,200 to $5,000–a healthy 56% jump…
Read More “Coming Soon: PA Drillers to Pay 56% More for Marcellus Permits”