West Virginia

Chief Oil & Gas | Energy Companies | Gastar Exploration | Marshall County | Tug Hill Operating | West Virginia | Wetzel County

Gastar Leaving Marcellus/Utica, Sells Assets to Tug Hill for $80M
February 23, 2016February 23, 2016

Gastar Exploration is throwing in the towel in the Marcellus/Utica. Gastar is selling its Marcellus/Utica assets–mainly located in Marshall and Wetzel counties in West Virginia, to Tug Hill for $80 million. Gastar has seen the light and that light is in becoming a “pure play” company focused solely on the Oklahoma STACK Play. Why sell what they admit are “high-quality”? Because they can’t get enough money for their gas in the northeast–and they can’t get enough money because there aren’t enough pipelines to move the gas to other markets. So they’re throwing in the towel and calling it quits. In addition to the sad news that they’re leaving the Marcellus, Gastar also delivered the bad news that their proved reserves went down 45% in 2015 due to lower commodity prices…
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Accidents | Energy Services | Industrywide Issues | MarkWest Energy | West Virginia | Wetzel County

MarkWest’s Mobley Processing Plant Spills Hazardous Oil into Creek
February 22, 2016February 22, 2016

There’s been an accidental release of a hazardous chemical at the MarkWest Energy cryogenic processing plant in Mobley (Wetzel County), WV. The spill was discovered Saturday morning by MarkWest workers. MarkWest’s Mobley plant separates natural gas from natural gas liquids (NGLs). The NGLs are sent on for further separation into their component parts at a fractionation facility. The fluid in question is DOWTHERM™ MX Heat Transfer Fluid, a chemical used as as a heat transfer fluid meant for closed-loop systems. An estimated 3,000 gallons of the fluid spilled, some of it reaching the North Fork of Fishing Creek and some of that entered the water intake for the community of Pine Grove, WV. The fluid was contained at the water plant and did not get into the public’s water supply–but just to be absolutely safe, some 360 households connected to the public water supply were cautioned to not drink or bathe in the water until further notice. MarkWest is providing bottled water to residents. Here’s what’s known so far…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

FERC Says Rover Pipeline as Planned Negatively Impacts Environment
February 22, 2016February 22, 2016

In December 2014 Energy Transfer Partners filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC) for the ET Rover pipeline (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). Rover is an 800-mile, $4.4 billion pipeline that will connect Pennsylvania, West Virginia and Ohio, crossing pretty much the entire state of Ohio heading northwest before entering Michigan and eventually taking a dog-leg into Ontario. In February of 2015, exactly a year ago, ET filed a full application with FERC. Last week FERC responded with a Draft Environmental Impact Statement (DEIS)–and the news was not so good for Rover. FERC found “adverse and significant” impacts from the project as planned and delivered to ET nearly 25 pages of recommendations that ET will need to fix before they get an approval. Is this a fatal blow to Rover? Or just a speed bump? Time will tell…
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Industrywide Issues | Regulation | Statewide WV | West Virginia

2 Bills Favorable to Drillers Advance in WV Senate – SB 508 & 565
February 22, 2016February 22, 2016

Two bills that favor the drilling industry in West Virginia have recently advanced in the WV Senate. One of the bills we previously told you about–Senate Bill (SB) 508, a bill that would stop endless, frivolous lawsuits from being filed against drillers (see WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers). The other bill is new for us, SB 565, a bill that “would allow oil and gas drillers to begin building well pads and access roads prior to getting a well work permit approved by the state Department of Environmental Protection.” SB 508 passed the Senate Judiciary Committee last week, and SB 565 was passed in the Senate Energy Committee. They are both on their way and likely to pass the full Senate and House…
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Industrywide Issues | Jobs | Lewis County | U.S. Well Services | West Virginia

US Well Services Lays Off Nearly 50 in Jane Lew, WV
February 19, 2016February 19, 2016

U.S. Well Services, headquartered in Houston, TX but with a sizable office in Jane Lew, WV, is an oilfield services company providing hydraulic fracturing services in unconventional oil and natural gas basins–including the Marcellus and Utica Shale. According to their website, U.S. Well Services operates both diesel and electric fracking fleets. On Wednesday, with no warning, they laid off most of their workers in the Jane Lew office–just under 50 people, meaning the company was not required to give advance notice under the WARN Act. Here’s what happened on Wednesday, what U.S. Well Services calls an “unfortunate reduction”…
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Industrywide Issues | Statewide WV | Taxation | West Virginia

WV Senate Passes Bill to Eliminate Part of State Severance Tax
February 16, 2016February 16, 2016

Politicians who keep promises? Consider us thunderstruck. It’s actually happened in West Virginia. In January MDN told you that WV Gov. Earl Ray Tomblin had proposed reducing the oil and gas severance tax (see WV Gov. Tomblin Proposes to LOWER Oil & Gas Severance Tax). Here’s the back story: In 2005, before he was Governor, Tomblin was President of the WV Senate. At that time the WV legislature passed an extra fee on top of the existing severance tax–a fee of 4.7 cents per thousand cubic feet of natural gas (along with a fee on coal extraction). The fee was to be used to pay down the state’s old workers’ compensation debts. Tomblin promised that once the debt was paid, the fee would be lifted. “Yeah, right” was the reaction. However, the debt is now nearly paid, and Tomblin has kept his promise. The WV Senate unanimously passed Senate Bill (SB) 419 that will lift the extra fee…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Landfills | Wastewater | West Virginia

Antero Plans Salt Landfill Next to Proposed Wastewater Recycling Plant
February 16, 2016February 16, 2016

In August of last year, 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. Antero tapped French company Veolia to engineer and build the plant (see French Company Confirms Building $275M Wastewater Plant for Antero). The plant will go online in late 2017. The new news is that last week Antero filed for a permit to build a landfill next to the wastewater 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…
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Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

WV Forced Pooling Bill HB 4426 Introduced – Debate Rages
February 16, 2016February 16, 2016

The forced pooling debate is now raging in West Virginia. As we previously reported, Republican chairman of the WV House Energy Committee, Lynwood “Woody” Ireland believes a new version of the forced pooling bill he recently introduced is as fair as it gets for both landowners and drillers (see Bill Sponsor Says It’s Now or Never for WV Forced Pooling Law). Ireland also believes if the bill doesn’t pass this year, it is likely a dead issue. However, other Republicans in the legislature called forced pooling tantamount to big businesses bullying private property owners. A forced pooling bill has been floated in five of the last six years (2012 was the exception). Will it pass this time? On Feb. 5 Ireland introduced House Bill (HB) 4426, called the “Horizontal Well Unitization and Landowner Protection Act of 2016” (full copy embedded below). Here’s an update on the debate now raging in Charleston and beyond…
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Antero Resources | Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Litigation | Regulation | Statewide WV | West Virginia

WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers
February 16, 2016February 16, 2016

There’s been an interesting twist in pack of so-called “nuisance” lawsuits filed against Antero Resources in West Virginia (see Scores of “Nuisance” Lawsuits Against WV Drillers Combined). As we reported, more than 200 residents in WV (likely those who don’t own the mineral rights under their land) began filing “scores” of “nuisance” lawsuits over the past couple of years against Antero Resources and Hall Drilling, in places like Doddridge County. The lawsuits claim excessive traffic, odors and noise from nearby drilling make it “impossible” for them to enjoy their homes. The individual lawsuits were rolled up into one mega lawsuit that, at the time, sat before the WV Mass Litigation Panel. More recently it seems the mass lawsuit was transferred to Ohio Circuit Court (see More People Pile on Antero, Seek to Join Mass “Nuisance” Lawsuit). The strategy by anti-drillers is to form a piranha-like school of fish to attack a large mammal and kill it with thousands of tiny bites. But a problem has appeared for the antis. A bill was just introduced in the WV Senate on Feb. 4, Senate Bill (SB 508) that defines what, exactly, a nuisance is for the purposes of such lawsuits. In other words, legislators are about to plug a hole being exploited by antis–and the antis are squealing like stuck pigs…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Randolph County | Regulation | Statewide WV | West Virginia

Atlantic Coast Pipeline Proposes New Route to Save the Salamanders
February 16, 2016February 16, 2016

MDN told you last month that the US Forest Service, drunk on its own power, vetoed a path through a few miles of national forests for the $5 billion Atlantic Coast Pipeline (see US Forest Service Blocks Atlantic Coast Pipeline in National Forests). Using cow nob salamanders and red spruce as their excuse, USFS said “nyet comrade” to Dominion in their quest to build a natural gas pipeline from West Virginia to North Carolina. Dominion had requested a special permit to cross teeny tiny sections of the Monongahela and George Washington national forests in West Virginia and Virginia. So now what? Last week Dominion announced an alternate route for the pipeline (see map below) that avoids most of (not all of) the forests–adding another 30 miles to the 564-mile pipeline, and disrupting 249 landowners in Pocahontas and Randolph counties who will now need to sign easements to allow the pipeline across their land. All to avoid a few miles of forestland. Here’s the latest on the mighty Atlantic Coast Pipeline, re-routed because of a salamander…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

EIA Feb DPR: Utica NatGas Output Continues to Increase
February 10, 2016February 10, 2016

Earlier this week our favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report, the Drilling Productivity Report (DPR). The February 2016 report shows what the EIA predicts oil and natural gas production will be in March from the seven largest commercial shale plays in the U.S. What does the report (full copy below) show? Very broadly, it shows that the decline in natural gas production is picking up speed, while the decline in oil slowed (reversed, actually). In January’s report, the EIA said for February the combined output of natgas would decline by 405 million cubic feet per day (MMcf/d). In this report, forecasting March production, the EIA says the decline will go down another 451 MMcf/d over the February number. That is, the rate of decline is increasing. There’s only one shale play of the seven with an increase in natgas output from the previous month. Can you guess which one? That’s right–the Utica…
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Calhoun County | Columbia Pipeline Group | Doddridge County | Energy Services | Industrywide Issues | Jackson County | Pipelines | Taxation | West Virginia

Mountaineer XPress Pipeline Seeks Tax Break from WV Counties
February 9, 2016February 9, 2016

Columbia Pipeline Group is trying to convince counties in West Virginia where its proposed Mountaineer XPress Pipeline will be built, to reduce the amount of property tax they will have to pay under WV state law. Mountaineer XPress Project (MXP) includes 165 miles of new pipeline from Marshall County, WV to Wayne County, WV with approximately 2.7 billion cubic feet per day (Bcf/d) of transportation capacity from existing and future points of receipt along or near CPG’s system (see Columbia Pipeline’s Mountaineer XPress Project Accepted by FERC). In addition to new pipeline, the $2 billion project also includes constructing three new compressor stations and upgrading three existing stations. Columbia is shopping the concept of a PILOT–a Payment In Lieu Of Taxes. Such a plan essentially means they will pay less money than a county would otherwise collect in regular property taxes on the pipeline. Here’s the strange thing–the counties and school districts affected would end up keeping more of the money collected from PILOT payments than they would from regular property tax payments. It’s actually a win/win–Columbia pays less and more of the money paid stays local. Go figure…
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Baker Hughes | Energy Services | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts for World, US & Marcellus/Utica Continue to Tumble
February 8, 2016February 8, 2016

The number of active drilling rigs worldwide, in North America and in the Marcellus/Utica continued to tumble in January. Baker Hughes released their average rig count data for January last Friday. The news, as we expected (but nevertheless hoped wouldn’t be the case) was not good. Worldwide the number of active oil and gas rigs fell by 78. In North America the rig count went down by 28 rigs, but that’s not the full story. Rig counts in the United States fell by a whopping 60 while the rig count in Canada went up by 32. So here at home the story was bloodier than the top level numbers indicate. What about in the Marcellus/Utica? Once again MDN brings you the exclusive chart for Marcellus/Utica rig counts over the past 12 months. Region-wide rigs went down another by seven in the Marcellus/Utica. All three states that we track–PA, OH, WV–had rig count losses in January…
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Air Quality | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Statewide WV | West Virginia

29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP
February 8, 2016February 8, 2016

On January 26, 2016, 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of President Obama’s Clean Power Plan (CPP). A week before the D.C. Circuit Court of Appeals denied such a stay, so the states are taking it to the final authority in such matters. The states are begging the court for a stay because the CPP will do “irreparable harm” if it is allowed to be implemented by the dictatorial Obama Administration. For background on how this horrible plan will damage natural gas and our economy in general, see 9 Fatal Flaws with Obama EPA Clean Power Plan. Energy law firm Baker Hostetler LLP is the law firm of record for the State of Oklahoma and Oklahoma Department of Environmental Quality in this case. Below is an update from Baker Hostetler on the Supreme Court filing…
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Accidents | Belmont County | Industrywide Issues | Marshall County | Ohio | Trucking | West Virginia | Wetzel County

3 Marcellus/Utica Truck Accidents in Ohio Valley – in Past 7 Days
February 5, 2016February 5, 2016

With Marcellus and Utica Shale drilling comes truck traffic–a lot of truck traffic. Which is great if you’re a driver who needs work, or a trucking company who wants to chase the business. But not so great if you live in the area where trucks are jamming up the roadways. Another downside to the truck traffic is the occasional accident. In the past week there have been three truck accidents in the Ohio Valley area–in Wetzel and Marshall counties in WV, and Belmont Count in OH. Two of the three required a hazmat team to deploy. Here’s the details…
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Commodity Price | Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

WVONGA’s Corky DeMarco Comments on Need for Forced Pooling in WV
February 5, 2016February 5, 2016

The West Virginia Press Association hosted their annual Legislative Breakfast yesterday in Charleston. A number of speakers addressed the group to discuss a range of issues. One of those speakers was Corky DeMarco, executive director of the West Virginia Oil and Natural Gas Association. Corky talked about how long the oil and gas industry will be around in WV (“a thousand years”) and about why the price of oil and gas is so low today (“we’ve kind of priced ourselves out of the market”). He also spoke about the need for forced pooling legislation…
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