West Virginia

Drilco | Energy Companies | Statewide WV | West Virginia

Small WV Driller Looks for $30M to Drill 20 New Wells
September 20, 2016September 19, 2016

Drilco, a small West Virginia drilling company, is looking to land 23 investors who are willing to plunk down a $1.3 million each (for a cumulative $30 million) to help the company drill more wells. According to the Drilco prospectus (below), Drilco wants to fund their 2016 1H Drilling Program with $30 million to drill 10 vertical and 10 horizontal wells throughout five crude oil and natural gas producing zones. The formations Drilco is targeting include: the Big Lime formation, the Big Injun Sandstone, Berea Sandstone, and Upper Devonian Shale and the Marcellus Shale. The ten vertical wells will be completed using multi-stage frac methods through the use of lateral jet perforating and bridge plug completion. Each of the ten vertical wells and ten horizontal wells will be drilled on various leaseholds held by Drilco in West Virginia. Please note: MDN has permission to share the prospectus below (called a private placement memorandum). MDN does not endorse the offering (nor do we not not endorse it). We simply bring it to you to highlight what one small driller is doing to raise money to keep on drilling, and to point out there may be more drilling on the way in the seven counties where Drilco currently has some 15,000 acres under lease…
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Energy Companies | EQT Corp | Industrywide Issues | Pipelines | Regulation | Statewide VA | Virginia | West Virginia | Wetzel County

FERC Gives WV to VA Mountain Valley Pipeline Provisional Thumbs Up
September 19, 2016September 19, 2016

The Federal Energy Regulatory Commission (FERC) has given a preliminary thumbs up to the Mountain Valley Pipeline, a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission last October, is being built by EQT, NextEra Energy and several other partners (see Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time). The project has faced stiff opposition from landowners in West Virginia (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). The project has also faced opposition from landowners in Virginia (see Mountain Valley Pipeline Wins Right to Survey in VA w/o Permission). Last Friday FERC issued a Draft Environmental Impact Statement (DEIS) for both the Mountain Valley Pipeline and an associated project called the Equitrans Expansion Project. FERC’s DEIS runs a mammoth 781 pages (full copy below) and says the pipeline “would result in limited adverse environmental impacts, with the exceptions of impacts on forest.” In other words, FERC is giving the project a thumbs up…
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Industrywide Issues | Research | Statewide WV | Wastewater | West Virginia

WVU Scores Another $4M Grant – to Study Produced Water
September 13, 2016September 13, 2016

(WVU Photo by M.G. Ellis) — Paul Ziemkiewicz, Director of the West Virginia Water Research Institute at WVU, and Jay Hewitt, Northeast Natural Energy, work at the Marcellus Shale Energy and Environment Laboratory in Morgantown.

At the end of 2014 West Virginia University (WVU) scored a major grant from the U.S. Dept. of Energy, which forked over $11 million to WVU and Ohio State University to conduct a five-year project to study “baseline measurements, subsurface development and environmental monitoring” in the Marcellus and Utica Shale (see WVU/OSU Get $11M Grant to Study Shale Energy Best Practices). WVU’s efforts are yielding fruit. In July we told you that WVU had studied frack waste and pronounced it safe (see Independent Research @ WVU Concludes Frack Waste is Safe). We’d call that a good use of taxpayer money! One of the innovations WVU has been working on is “green” drilling mud, a more environmentally-friendly drilling mud used to drill Marcellus/Utica wells (see WVU Effusive Over “Green” Drilling Fluid Used in Test Wells). WVU has done it again. WVU, along with the University of Kansas, has just been awarded a $4 million grant from the National Science Foundation to study “produced water”–which is water from the depths that comes out of the borehole long after drilling and fracking are done. This naturally occurring water is super salty–far more salty (with minerals) than sea water. Typically drillers will either recycle it and reuse it for more drilling and fracking, or dispose of it via an injection well. WVU and KU are charged with developing “cutting-edge strategies for better management, treatment, protection and recovery of produced water.” Here’s the announcement and good news that WVU is on the case for better handling of produced water…
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Dominion Energy | Energy Services | Herkimer County | Industrywide Issues | Maryland | New York | Ohio | Pennsylvania | Pipelines | Statewide MD | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Dominion Locks Out Union Workers at Compressor Stations/Pipelines
September 8, 2016September 8, 2016

Yesterday MDN reported the story that Dominion Transmission has decided to lock out union members from working at their jobs in Dominion installations over a contract dispute (see Dominion Locks Out Labor Union Workers in WV-PA-OH-NY-VA-MD). We asked the question of whether and how this might affect certain ongoing projects at Dominion. Apparently some of our comments about Dominion “union busting” rankled some MDN subscribers and may have led them to feel as though we’re taking sides in this issue. In this case, we are not taking sides. We are (uncharacteristically) remaining neutral and simply reporting what we observe based on press reports. We have a number of updates today, including comments from Dominion about why they took the action they took, the response from UGWU Local 69, and clips from stories showing that indeed, as we feared, some of the workers locked out are workers at Dominion compressor stations and pipelines. The somewhat hopeful news is that both sides are set to meet today in West Virginia with a federal mediator for more talks on settling the dispute…
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Energy Services | Industrywide Issues | Litigation | MarkWest Energy | West Virginia | Wetzel County

MarkWest Sues Contractor for Shoddy Work at WV Processing Plant
September 8, 2016September 8, 2016

Over the years, MarkWest Energy, now a part of MPLX, has built a number of natural gas processing plants in Wetzel County, WV, collectively called the Mobley plant. In September 2014 MarkWest signed a contract with paving and construction company J.F. Allen to design and build a retaining wall so MarkWest could then build the Mobley V plant (in Smithfield). MarkWest says, in a lawsuit they’ve filed against J.F. Allen and other subcontractors, that they didn’t do the job right and it resulted in long delays and millions of dollars in extra costs for MarkWest. Which MarkWest is now trying to recover, requesting a jury trial…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Landfills | Wastewater | West Virginia

Antero Responds to Critics of New WV Wastewater Facility
September 6, 2016September 6, 2016

Two weeks ago MDN provided an update on the new Antero state-of-the-art frack wastewater treatment plant and landfill being built in West Virginia (see Update on Antero’s $275M Wastewater Facility in WV). Once built, this new plant will recycle 98% of the water used, for re-use by Antero in its fracking and drilling operations. According to Antero’s regional senior vice president and chief administrative officer, Al Shopp, although it may be cheaper to just inject the wastewater down an injection well somewhere, the more environmentally friendly, long-term solution is to do what they are doing–recycle it all. You might think that would please environmental Nazis–but you would be wrong. They want zero drilling and anything, including a better way to handle wastewater, will lead to more drilling and therefore is opposed by these nutters. Al Shopp responds to some of their nonsensical arguments against the new plant…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Wastewater | West Virginia

Mon Power Completes Project to Support WV Shale Industry
September 2, 2016September 2, 2016

Last week MDN provided an update on Antero Resources’ $275 million state-of-the-art frack wastewater treatment plant in Doddridge County, WV (see Update on Antero’s $275M Wastewater Facility in WV). Things are progressing very nicely at the facility. Another important piece has just fallen into place for the facility. In order to operate it, you need LOTS of electricity. Enter Mon Power. Mon has just completed a new substation and power lines–a $5 million project–to provide electric service to the Antero frack wastewater treatment plant being built…
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Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Statewide WV | West Virginia

Shale Crescent Luring Petchem Companies to Mid-Ohio Valley
August 29, 2016August 29, 2016

In June MDN told you about an economic development group of business and government leaders from Ohio and West Virginia (the Mid-Ohio Valley) called Shale Crescent (see Group Promotes Mid-Ohio Valley for Petrochem: Shale Crescent USA). The group was two years in the making and officially launched in June at a public event in Washington County, OH. The aim of the group is to attract manufacturers–particularly petrochemical manufacturers–to set up shop in the region. Although the organization is still in its infancy, it’s already having an impact and is talking to large petchem companies (“household names”) about building plants in the Mid-Ohio Valley region to take advantage of cheap Marcellus/Utica Shale gas and NGLs…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Pipelines | Statewide WV | Wastewater | West Virginia

Update on Antero’s $275M Wastewater Facility in WV
August 22, 2016August 22, 2016

In August 2015, MDN told you that one of the biggest drillers in the Marcellus/Utica, Antero Resources, floated the idea of building a $275 million state-of-the-art frack wastewater treatment plant in Doddridge County, WV (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The new plant, which will process 60,000 barrels of wastewater per day, will save Antero $150,000 per well in completion costs once it’s up and running. In February 2016, Antero filed for a permit to build a landfill next to the wastewater plant (see Antero Plans Salt Landfill Next to Proposed Wastewater Recycling Plant). The wastewater plant will separate water, salt and radioactive particles. The salt can be sold to municipalities for use as road salt–but frankly there’s not enough of a market to sell it all. And not all of it will be of sufficient quality to be sold that way. So Antero needs a place to dispose of it, hence the $20 million landfill proposal. Predictably, there has been some resistance to the new facility and landfill. The good news is that the facility is on track for a 2017 opening. Below is an update on the wastewater facility and the salt landfill next to it…
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Anti-Drilling/Fossil Fuel | Energy Companies | EQT Corp | Fayette County | Industrywide Issues | Litigation | Regulation | Wastewater | West Virginia

Fayette County, WV Appeals Federal Court Ruling on Injection Well
August 19, 2016August 19, 2016

In January, three liberal Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). The ban was intentionally written so broadly it would also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). One of the chief architects of the ban, from the Mountain Party, admits the ban was intended to stop all oil and gas activity in the county (see Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells). Fearing they would lose the EQT lawsuit, in March the commissioners backed away from the position of banning everything to do with drilling in the county. They revised the proposed ban regulation as a tactic to avoid losing their court case (see Fayette WV Commissioners Change Ban to Focus on Injection Wells). In June, a federal judge tossed out Fayette’s illegal ban (see Federal Judge Rules Fayette County Injection Well Ban Illegal). Now the lib Dems, with the assistance of the radical Appalachian Mountain Advocates, has had the gall to appeal the federal judge’s decision…
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Industrywide Issues | Research | Statewide WV | West Virginia

WVU Prof Gets $110K Grant to Research ‘Methane Aromatization’
August 18, 2016August 18, 2016

A West Virginia University engineering prof has just been awarded $110,000 to study methane aromatization. What’s that? It’s the process of turning methane, or natural gas, into “higher value products” like benzene and hydrogen. It’s not as easy as it may sound. If the good prof is successful, it may open up new markets in the northeast for our overabundant natural gas supplies. Here’s the lowdown…
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Economic Impact | Industrywide Issues | Jobs | Kanawha County | Processing Plants | Statewide WV | West Virginia

US Methanol Confirms MDN Rumor – 2 (or More) Plants Coming to WV
August 17, 2016August 17, 2016

Last week MDN was the first to share the news that the California-based US Methanol is building at least two, rumored up to five, methanol plants in the Mountain State (see Rumor: US Methanol Building 5 Methanol Plants in WV). MDN shared a rumor (based on a source) that until we disclosed it, was not public knowledge: The first methanol plant they will build will be in Institute, WV, and the second in Belle, WV–both in the Charleston region. We now have confirmation of that rumor via several news accounts. We also told you that both plants were being disassembled in other countries and brought here. We now know which countries are losing the plants that will be reassembled in Institute and Belle…
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Brooke County | Electrical Generation | Harrison County | Industrywide Issues | Marshall County | West Virginia

Progress for 3 WV NatGas Electric Plants; 1 Breaks Ground in 2016
August 17, 2016August 17, 2016

In April 2014 MDN brought you the exciting news that a father and son team, Andrew and Matthew Dorn (based in Buffalo, NY) would build a 549-megawatt electric generating plant, powered by Marcellus Shale, in Moundsville (Marshall County), WV (see Marcellus-Powered Electric Plant Coming to Marshall County, WV). The Dorns, who later named their company Energy Solutions Consortium, announced in March 2015 plans to build more plants in WV (see Big News: 3 More Marcellus-Powered Electric Plants Coming to WV). We have an update on the progress for all of the plants the Dorns want to build in the Mountain State–with a massive $2 billion investment. The short version: all projects are progressing nicely, and the Marshall County project will break ground this year…
Read More “Progress for 3 WV NatGas Electric Plants; 1 Breaks Ground in 2016”
Energy Companies | Ethane | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Shell | Statewide OH | Statewide PA | Statewide WV | West Virginia

Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker
August 16, 2016August 16, 2016

All the way back in February MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily has broken a story that gives us new details. Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February. The new ethane pipeline system has a name: the Falcon Ethane Pipeline System. Here’s brief details about the new ethane pipeline system…
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Brooke County | Energy Companies | Equinor/Statoil | Industrywide Issues | Litigation | Marshall County | Ohio County | Taxation | West Virginia | Wetzel County

4 WV Counties Refuse to Grant Statoil $6.6 Million in Tax Refunds
August 15, 2016August 15, 2016

Brooke County, WV makes it four for four in denying Statoil’s request to refund tax overpayments made by the company. Statoil, based in Norway, is a big player in the West Virginia Marcellus Shale. Statoil paid property taxes to Brooke, Marshall, Ohio and Wetzel counties (all in WV) in 2015 and later found, during an audit/review, that they had overpaid those counties. They overpaid Brooke by $1.8 million, Ohio by $2.9 million, Wetzel by $1.6 million and Marshall by $342,000. We previously reported on Marshall’s refusal to refund the money (see Statoil Wants Millions in Refunds from Tax Overpayments in WV). The WV Tax Department argues that Statoil “acted negligently” and exercised “poor judgment” in not finding the mistake sooner. With Brooke’s refusal, all four counties have now voted to deny Statoil’s request. Statoil is (so far) taking Marshall and Ohio counties to court, suing them for refunds. They are “assessing…options” with respect to suing Wetzel and Brooke. You can bet your bottom dollar they will…
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Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Experts Say New Marcellus/Utica Drilling “Imminent”
August 12, 2016August 12, 2016

We’d never heard this before, but apparently the Marcellus/Utica has been known for some time as the “Beast of the East.” Fitting! However, our region has gone from “Beast of the East” to “Beast on a Leash.” Very true. Low prices have suppressed new drilling projects. But according to experts on a recent webinar held by S&P Global Platts, new Marcellus/Utica drilling “is imminent.” Now that’s REALLY good news! Here’s some other things said on the webinar…
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