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WV Scores Another Shale Supply Chain Company – from Italy

West Virginia is working hard to attract all kinds of businesses to the state that plug in to the shale industry supply chain—and it’s paying off. Reporting that the state gave them “some very interesting support,” Italian company Pietro Fiorentini, a pressure regulator and valve manufacturer, said they first need to gage interest to their products, but they’re already feeling good about WV and making plans to build a new, $9 million manufacturing plant in Weirton, WV.

Support from the state (and local municipalities) is not the only reason for the company’s interest in the northern panhandle of WV—geography is the other prime reason…

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WV Landowners *with* Lease Sue Chesapeake for Drilling Next Door

A mother and son have filed a lawsuit against Chesapeake Energy in Brooke County, WV charging them with illegal trespass under their property and taking some of the natural gas that exists in the Marcellus Shale from under their property. West Virginia does not have a pooling law—the right of drillers to “force pool” parcels of land into a drilling unit if a majority of surrounding neighbors have agreed to allow it.

The strange thing about this case is that the mother and son have a signed lease with Chesapeake—a lease which they renewed for an additional 5-year term. For some reason they don’t want their property pooled with their neighbors into a unit for Marcellus drilling—they refused it. So Chesapeake drilled next door to their property, essentially ignoring them. The landowners say Chesapeake’s close-by drilling has caused them economic harm. It’s now a case in federal court…

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Chesapeake Energy Tardy with Royalty Payments in WV

According to two at least two West Virginia landowners, Chesapeake Energy has been in no hurry to pay them the royalties they are owed. In each case, the landowner has had to contact Chesapeake. Even after calling Chesapeake, the landowners are still waiting for their first royalty checks to arrive.

Here’s the story of two landowners, one in Ohio County, the other in Brooke County:

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WV Park’s Marcellus Signing Bonus the Highest We’ve Seen

In a story about a natural gas pipeline that will be run under a county-owned trail in Brooke County, WV, MDN spotted a brief mention about the signing bonus and royalty rate received by Brooke Hills Park in 2011 for drilling on 100 acres of park land. It is perhaps the highest per acre signing bonus we’ve seen for land in the Marcellus:

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Drillers Ship NGLs from Weirton, WV to Houston via Barge

Good old American ingenuity…Drillers are not waiting for processing plants to be completed or pipelines to come online in order to sell their natural gas liquids (NGLs) from the Marcellus and Utica Shale region. A few weeks ago, one million gallons of NGLs were loaded on a tanker barge originating at the port in Weirton, WV. The barge floated first down the Ohio River, and then the Mississippi River on its way to Houston, TX for processing.

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Veiled Reference to New Cracker Plant for WV?

Joe Eddy, president and CEO of Eagle Manufacturing in Wellsburg, WV made a presentation to the Wellsburg City Council on Tuesday. During his presentation, he made a mysterious reference to news that an ethane cracker plant may “come to the region in the next six months” and then said he could not elaborate any further. This is a synopsis of what he said:

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WV Landowners Drive a Hard Bargain for Pipeline Deals

Some West Virginia landowners who feel shortchanged with low drilling signing bonuses ($5 per acre) and royalty rates (12.5%) are holding out for better deals to run pipelines across their property, and that’s leading to a slow-down of new wells coming online in the state, according to a former DEP representative.

Counties being affected by the slowdown include Ohio, Brooke and Hancock. Typically pipeline easements are a one-time payment, like a signing bonus, and are based on a per foot price. How high will those prices go? Some of the numbers being tossed about are breathtaking.

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WV Couple Challenges Chesapeake Lease Renewal

A husband and wife in Brooke County, West Virginia are suing to have their 5 year-old lease, which is now expired and up for renewal, nullified so Chesapeake (now the owner of the lease) cannot automatically renew it as they are attempting to do.

Increasingly landowners who signed leases that are now expiring after a customary 5 year period face the same issue—and drillers are trying to lock them in under the terms of lease for a new period of time.

Here’s the story of Ramon and Lois Bowen:

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Brooke County WV Schools Get $661K in Lease Payments

Brooke County Schools in West Virginia are eager to have Chesapeake Energy drill under school-owned property. But Ohio County Schools, also in WV, don’t want Chesapeake drilling near their schools. What’s the difference? One is getting a boatload of money in lease (and eventually royalty) payments. The other isn’t.

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MarkWest Inks Two New Deals to Expand Processing in WV

MarkWest has been in the news a lot lately, signing a raft of new agreements and even buying out a competitor. Last Friday, MarkWest announced they had signed an agreement (terms not disclosed) to expand MarkWest’s processing capacity in the Marcellus Shale to handle more Chesapeake production. The areas covered by the agreement include northern West Virginia (Brooke, Ohio and Marshall counties), and Washington County in Pennsylvania.

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MarkWest Inks Major New Deals with Chesapeake & Antero

MarkWest announced today two major new agreements to provide expanded natural gas processing and pipeline capacity for Chesapeake Energy and Antero Resouces in the Marcellus Shale. The deal with Chesapeake covers Brooke, Ohio and Marshall counties in WV, and Washington County, PA. The deal with Antero covers Doddridge and Harrison counties in WV. The new agreements, which include processing natural gas liquids, mean MarkWest will build new gathering pipelines and add compressor stations to their existing operations.

From the MarkWest press release:

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Brooke County School District Signs Lease with Chesapeake

The Brooke County, WV Board of Education on Monday approved a lease deal with Chesapeake Energy that will allow natural gas drilling beneath school-owned property. The deal allows Chesapeake to drill under any of the school’s collective 189 acres, which is scattered throughout the county at different locations. The signing bonus is $3,500 per acre for each acre drilled, plus 18 percent royalties.

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