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Chevron Restarts Production for Some WV Wells after Accident

Chevron previously purchased a number of leases and drilling operations in Marshall and Ohio counties in West Virginia. But they halted production for their WV operations earlier this year after a well exploded near Moundsville to conduct a top to bottom safety review and ensure the newly acquired operations met Chevron’s high safety standards.

Although the review is ongoing, it’s been completed in some areas and wells in Marshall County are now starting to come back online.

Read More “Chevron Restarts Production for Some WV Wells after Accident”

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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.

Read More “WV Landowners Drive a Hard Bargain for Pipeline Deals”

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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.

Read More “Brooke County WV Schools Get $661K in Lease Payments”

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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.

Read More “MarkWest Inks Two New Deals to Expand Processing in WV”

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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:

Read More “MarkWest Inks Major New Deals with Chesapeake & Antero”

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Chevron Acquires Leases to 4,400 Acres in Ohio County, WV

Ohio County, WVChevron is the latest large energy company to purchase leases in the Ohio Valley for shale gas drilling. Recently, Hess paid $1.34 billion to acquire acreage in eastern Ohio, and Exxon Mobil subsidiary XTO Energy is now signing up landowners in Belmont County, OH for Utica Shale drilling (see this MDN story). Just across the border, Chevron is investing in Ohio County, WV and now controls 4,400 acres there.

Read More “Chevron Acquires Leases to 4,400 Acres in Ohio County, WV”

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Ohio County Receives $8M (So Far) from Marcellus Gas Leases

Ohio County, WV is reaping the rewards of leasing county-owned land for Marcellus gas drilling. The county’s land leases with Chesapeake Energy have already resulted in nearly $8 million in one-time lease payments for the county coffers, and soon will mean royalty payments too. Chesapeake has already completed a well on private land adjacent to (and drilling under) county land in The Highlands area. But gas from that well has not yet started to flow due to a delay in getting a pipeline built to the well. Once the pipeline is in place, the county will start receiving royalty checks from that well.

And within the next 12 months, Chesapeake will drill a new well, this time directly on county-owned land at the airport:

Read More “Ohio County Receives $8M (So Far) from Marcellus Gas Leases”

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Union Protests Dominion Transmission in WV Over Lack of Local Workers in Building Pipelines

A local union in West Virginia is set to protest natural gas transmission facilities owned by Dominion over the issue of jobs and out-of-state workers being brought in to build new pipelines in the Wetzel County.

Read More “Union Protests Dominion Transmission in WV Over Lack of Local Workers in Building Pipelines”

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West Virginia Now Employs 10K People in Marcellus Shale Gas Industry, Wetzel & Marshall Counties Most Active in Gas Drilling

WV - New Marcellus WellsAn article in today’s West Virginia paper The Intelligencer / Wheeling News-Register attempts to denigrate Marcellus gas drilling in the state by focusing on some of the problems. One of those problems, according to the article, is that 13 illegal aliens (undocumented workers) that have been caught working for drilling contractors in the state “in the last few years.” But 13 illegals apprehended out of some 10,000 workers employed by the Marcellus gas drilling industry in the state is an infinitesimally small 1/10th of one percent. That is, it’s a non-story. If the statistics are to be believed that there are some  20 million illegals in the U.S., and the population of our country is around 300 million, that means an average 6 1/2 percent of the entire population are illegal aliens! Point is: the drilling industry does not seek to employ illegals—it happens, like any industry.

Read More “West Virginia Now Employs 10K People in Marcellus Shale Gas Industry, Wetzel & Marshall Counties Most Active in Gas Drilling”

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Marcellus Leasing & Drilling in the West Virginia Panhandle Heats Up

West Virginia Marcellus Shale is getting hot. From an article* in the Steubenville (OH) Herald-Star, we get a mountain of good intelligence on what energy companies have and are paying in the West Virginia panhandle:

  • AB Resources is paying the New Vrindaban Hare Krishna Community in Marshall County $2,500 per acre for approximately 4,000 acres, and 18.75 percent production royalties. That works out to $10 million in lease payments.
  • Chesapeake paid $750 per acre and 14 percent royalties to the Wheeling Park Commission for leases in the Oglebay and Wheeling Parks in 2009. The park commissioner is not happy that Chesapeake is planning to pay more this year to lease public lands in neighboring Ohio County.
  • Chesapeake paid $2,800 per acre and 18.75 percent production royalties last month to the Marshall County Board of Education for rights to 177 acres in Sherrard.
  • Chesapeake has 11,000 acres under lease in Ohio County, and 45,000 acres (with 26 wells drilled) in Marshall County.
  • Trans Energy owns and operates 300 active wells in Marshall, Wetzel and Marion counties, with 40,000 acres under lease.

Also, according to the article:

Current lease contracts range from as low as $5 per acre to as high as $2,800 per acre, with production royalties ranging from 12.5 percent to 18.75 percent. Landowners are being urged to think carefully before signing any contract.*

*Steubenville Herald-Star (Mar 8th) – Steubenville Herald-Star – Natural gas could bring riches to Panhandle

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Dunkard Creek Fish Kill Update

Pittsburgh Post-Gazette (Oct 14):
Drilling water may be cause of fish kill: DEP points to salty discharge from mine

Charleston Gazette (Sept 21):
Consol mine may not be reason for fish dying

An update on the fish kill in the Dunkard Creek which runs along the Pennsylvania and West Virginia border. As you recall, MDN pointed out that a connection to drilling in the Marcellus Shale for natural gas was tenous at best. A new story in the Pittsburgh Post-Gazette further strengthens that view (although you have to read the article with a discerning eye).

This new article says the PA Department of Environmental Protection is now pointing the finger of blame (mostly) at an area coal mine. Here’s how the article starts:

A heretofore undisclosed underground flow of mine pool and methane gas well drilling water into Consol Energy’s Blacksville No. 2 Mine may have contributed to the salty, polluted discharges that caused the massive, month-long fish kill on Dunkard Creek.

Notice the confusing language that talks about “methane gas well drilling.” It leads you to believe the problem is about gas drilling, perhaps even hydrofracturing. It is not. Later on we get this:

[The PA DEP] requested that the U.S. Environmental Protection Agency revoke the federal deep well injection permit that allows Consol to dispose of coalbed methane drilling waste water…

So the waste water, IF it is the cause, comes from coal mining, not natural gas hydrofracturing. We need to be very clear about that. Blacksville No. 2 is a coal mine–there is no drilling for natural gas at that location. The PA DEP is saying that discharges from the coal mine into the creek “may have contributed” to the fish kill. Consol is vigorously denying the connection.

So what is the connection to drilling in the Marcellus? A fantastical story. Here’s another paragraph, deep in this article:

The Pennsylvania DEP said that algae — which may have “hitchhiked” to the Mason-Dixon Line on drilling rigs brought up from Texas to work in the Marcellus shale gas fields in Pennsylvania and West Virginia — was able to flourish in a brackish Dunkard Creek because of the high levels of dissolved solids and chlorides discharged into the stream by Consol’s treatment facility.

There you have it. Nasty coal miners weakened Dunkard Creek, and nasty gas drillers drove trucks from Texas to the area and those little algae devils had the nerve to hitchhike along and jump into the Creek right where it was weakened and cause this problem. Go figure.

Oh, one more little wrinkle in this story, that comes from the Charleston Gazette:

West Virginia environmental officials now say a nearby coal mine may not be the only reason fish are dying in Dunkard Creek.

Department of Environmental Protection officials say more dead fish have been found in the creek, but more than a mile upstream from Consol Energy’s Blacksville No. 2 mine.

So, more than a mile upstream from where the coal mine discharges into Dunkard Creek they found dead fish. If the “weakened” water was downstream and the algae flourish in weakened water, how might that have somehow traveled upstream? Oh wait, I’m using logic instead of blind eco-nut belief…what was I thinking??

Bottom line: I’m not categorically saying the coal mine plays no role, nor that hitchhiking algae plays no role. I am saying before we declare such things to be the case, let’s investigate and use some SCIENCE instead of blind and biased beliefs to declare a combination of coal and natural gas mining as the cause.

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Wheeling, WV Drilling Vote Delayed

Intelligencer Wheeling News Register (Oct 7):
Drill Vote Delayed

Wheeling, WV city council members have delayed a vote to allow Chesapeake Appalachia (a subsidiary of Chesapeake Energy) to begin drilling on city-owned land. From the article:

Though the Wheeling Park Commission has approved the lease allowing the company to drill on its property at Wheeling and Oglebay parks, city officials want to gain more information about the potential environmental impact of Chesapeake’s work before allowing the company to drill on city property.

Council members want to visit some of Chesapeake’s other drilling sites first to see first-hand what they look like. No complaints here. Council members should satisfy themselves that it will be safe and beneficial to the local community (which it will be), and then move forward.