MarkWest Builds/Operates Compressor Station w/o Building Permit
Hmmm. Here’s a story we don’t like to report, and fear there’s more to the story than we now know, but report it we must. MarkWest Energy, arguably the largest and most important midstream (pipelines & processing plants) company in the Marcellus and Utica Shale, was denied a building permit to construct a building to house several natural gas compressors in West Alexander (Donegal Township, Washington County), PA–but they went ahead and built it anyway, without the permit. The rogue compressor station is now up and running but has to use generators to supply power because the town won’t let them hook up electric since they’re still in violation of the building permit…
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Flaring a well–which involves burning the initial volume of natural gas (typically waste gas) or because a pipeline is not yet available to hook up to the well–is increasingly a rare event. Most companies attempt to capture even the initial amounts of gas. However, Range Resources is set to begin flaring their very first Utica Shale well, drilled about 10 miles from Washington, PA on the property of the Claysville Sportsmen’s Club in Donegal Township, east of Dutch Fork Lake. The flaring will begin on Dec. 7 and according to Range it will be really big, and really noisy…
The Chesapeake Energy fire sale continues–and this time it’s cut right into the bone and sinew of the company. The beneficiary of Chesapeake’s ongoing divestiture, this time, is Southwestern Energy. Southwestern has signed a deal to pick up 413,000 (!) Marcellus/Utica acres, most of it in West Virginia with some of it in Washington County, PA. Much of the land is in prime wet gas areas (see the map below). The deal includes 256 (!) operating and producing Marcellus and Utica Shale wells and another 179 (!) non-operated, non-producing wells–a total of 435 drilled wells. Southwestern is paying Chesapeake $5.375 BILLION for the deal–which will make Chesapeake’s real boss, corporate raider Carl Icahn, very happy…