West Virginia

Accidents | Industrywide Issues | Marshall County | NGLs | Pipelines | West Virginia | Williams

Williams Pays EPA $14K Penalty for WV Condensate Pipeline Accident
March 28, 2016March 28, 2016

In April 2015 a 4-inch condensate pipeline owned and operated by Williams ruptured in Marshall County, WV following torrential rains and landslides (see 2 Williams Pipelines Rupture in Marshall County After Heavy Rains). Ten days following the break Williams still hadn’t located the rupture which spilled 132 barrels of condensate into Little Grave Creek, a tributary flowing into the Ohio River (see Williams Still Can’t Find Leak in 4-inch WV Condensate Pipeline). Finally, after 15 days, Williams located the break and began repair work to fix it (see Williams Locates WV Condensate Pipeline Leak, Remediation Begins). When you have an accident, it’s costly. Not only will the state take a bite (see WV DEP to Fine Williams for Condensate Pipeline Leak in WV), but the feds want their pound of flesh too. The federal Environmental Protection Agency (EPA) announced last week that a year after the accident they’ve shaken down Williams for $14,440 as a “penalty” for the accident. Under the terms of the shakedown Williams did not admit guilt or culpability–they just paid hush money to make it go away…
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Allegheny County | American Petroleum Partners | Belmont County | Brooke County | Greene County (PA) | Jefferson County (OH) | Marion County | Marshall County | Monongalia County | Monroe County | Ohio | Ohio County | Pennsylvania | Washington County | West Virginia | Wetzel County

New Marcellus/Utica Driller Quietly Launches w/$800M Investment
March 23, 2016March 23, 2016

Details are just now coming to light of a new E&P (exploration and production, or drilling) company headquartered in Pittsburgh and focused totally on the Marcellus and Utica region. Until now the company has flown under our radar. The company is American Petroleum Partners (APP)–not to be confused with Aubrey McClendon’s American Energy Partners (AEP)–and is headed by Rice Energy alumnus Varun Mishra, who is the founder and CEO. The big news is that last September Mishra’s new company, founded in 2014, received a major injection of investment capital. Apollo Global Management invested $411 million in APP with the option to double it up to $800 million. MDN has it on very good authority that although APP quietly issued a press release about this last September (see it below), the company has intentionally kept the news quiet. Not any more! Big mouth MDN is blabbing it to the world. Below are the bits and pieces we’ve been able to put together about this newest Utica/Marcellus driller…
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Accidents | Energy Services | Industrywide Issues | MarkWest Energy | NGLs | Processing Plants | West Virginia | Wetzel County

MarkWest Hazardous Spill at Mobley Plant Now Cleaned Up
March 23, 2016March 23, 2016

One month ago there was an accidental release of a hazardous chemical at the MarkWest Energy cryogenic processing plant in Mobley (Wetzel County), WV (see MarkWest’s Mobley Processing Plant Spills Hazardous Oil into Creek). 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. However, the plant (Pine Grove Water Works) was closed before any of the water was used by local residents–so there was no harm done. MarkWest has reported they are done cleaning up the spill and the Pine Grove Water Works is back up and running…
Read More “MarkWest Hazardous Spill at Mobley Plant Now Cleaned Up”
Anti-Drilling/Fossil Fuel | Fayette County | Industrywide Issues | Litigation | Regulation | Wastewater | West Virginia

Fayette WV Commissioners Change Ban to Focus on Injection Wells
March 21, 2016March 21, 2016

The Democrat commissioners of Fayette County, WV are scrambling to try and keep their jobs after enacting what is turning out to be a disastrous ordinance to ban all fracking, injection wells, drilling, etc. 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). In fact, the ban is intentionally written so broadly it will 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). Not long after, a U.S. District Court judge slapped an injunction on the county preventing them from enforcing the ban at least until a hearing scheduled for later this month (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). One of the chief architects of the ban, from the Mountain Party, admits the ban is 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). Facing a lawsuit they will lose, the commissioners have backed away from the position of banning everything to do with drilling in the county. They’ve revised the proposed ban regulation as a tactic to avoid losing their court case–but everyone sees through this latest pathetic attempt. Sensing they won’t win their court case to ban drilling as well as injection wells, they’ve opted to toss the drilling part and go for just banning injection wells. We hope the voters and taxpayers in Fayette County vote the three commissioners out at the next election for their anti-drilling malfeasance…
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Somber Milestone – US Rig Count Hits Lowest Level in 68 Years
March 14, 2016March 14, 2016

Baker Hughes released their weekly rig count numbers last Friday (see full report below). We typically don’t report on the weekly ups and downs of rig counts, preferring to check in on a monthly basis to get an idea of the overall trend. But last week’s weekly report was historic, which is why we’re commenting on it now. Baker Hughes began tabulating weekly rig counts 68 years ago. The number of working rigs in the United States last Friday hit 480–the lowest number on record since Baker Hughes began keeping records. While the Marcellus count went up by 3 last week, right now there are only 19 rigs operating in Pennsylvania–less than before the Marcellus boom began and down from the high water mark of 114 rigs operating in 2012. When rigs are operating, it means jobs and economic stimulus for a community and region. It also means landowners get royalties, and that money gets invested and/or spent in a community. The converse is also true: no rig activity, fewer jobs and economic impact. Therefore the number of rigs operating is always of keen interest…
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Antero Resources | Energy Companies | Industrywide Issues | Litigation | Regulation | Statewide WV | West Virginia

WV “Help Out Antero” Bill (re Nuisance Lawsuits) is Dead for 2016
March 9, 2016March 9, 2016

We’ve told you about a bill winding its way through the legislative process in West Virginia that would stop a rash of so-called nuisance lawsuits–primarily against Antero Resources (see WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers). Hundreds of nuisance lawsuits (“they’re too loud, “they leave the lights on too late,” “I don’t like the truck traffic”) have been filed against Antero and other drillers. The lawsuits against Antero have been combined into a class action lawsuit (see More People Pile on Antero, Seek to Join Mass “Nuisance” Lawsuit). It’s a back door way to bring down a company–like a pack of hyenas attacking a giraffe. If the pack is big enough, it can kill its prey. Senate Bill (SB) 508 was meant to stop this insanity, and as of a few weeks ago it was advancing (see 2 Bills Favorable to Drillers Advance in WV Senate – SB 508 & 565). But that was then, this is now. SB 508 is now pretty much dead. A House committee is holding it up and the bill won’t make it to the floor for a vote before the end of WV’s brief 60-day legislative session…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts for World, US & Marcellus/Utica Crash in February
March 8, 2016March 8, 2016

Just when you thought the rig count couldn’t possibly get any worse–it does. Baker Hughes released their average rig count data for February yesterday–and it’s not a pretty picture. Worldwide the total number of active rigs in February was 1,018, down 27 from the 1,045 counted in January. But in the U.S., the rig count was 532, down 122 from the 654 counted in January 2016. That’s a huge 19% in a single month. The Marcellus/Utica region was similarly affected. It used to be when rig counts were crashing everywhere else, they held firm or slightly declined in the northeast. No more. In February the Marcellus/Utica lost another 10 rigs, from 52 in January to 42 in February–or a 19% decrease in a single month. Ouch. Below are the full details and charts that tell the story…
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About MDN | Industrywide Issues | Maryland | New York | Ohio | Pennsylvania | Research | Statewide MD | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

5 Key Insights from MDN’s 2015 Databook Vol. 3 – Just Released
March 7, 2016March 18, 2016

MDN recently published Volume 3 of the 2015 Marcellus and Utica Shale Databook. In 103 jam-packed pages you will get the latest information on what’s happening (or not happening) with drilling in the Marcellus/Utica region. Much of the Databook is a series of county maps–one map for each county where there’s permit activity for Marcellus or Utica drilling. Each county map shows a dot for where a permit was issued–along with the name of the driller next to it. The maps also show major natural gas pipelines and compressor stations. Each map offers you a quick, visual way of understanding where drilling is happening, and who’s doing the drilling.

For this new edition, MDN editor Jim Willis spent several weeks compiling and completely revising a directory of frack waste facilities, including the addition of hundreds of injection wells. The 3-volume series is just $350 (single volumes are $225). All three volumes are meant to work together. This is the PERFECT resource for drillers, pipeline companies, law firms, landmen and many others. Below we’ve included sample pages along with 5 key insights from this latest edition of the Databook…
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Energy Companies | Energy Services | EQT Corp | Industrywide Issues | Pipelines | Regulation | Statewide WV | West Virginia

Bill Allowing Surveyors Private Property Access Fails in WV Senate
March 2, 2016March 2, 2016

In June 2014 EQT and NextEra US Gas Assets formed a joint venture to build a 330-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA to deliver abundant, cheap Marcellus and Utica Shale gas to markets throughout the southeast (see EQT Announces New Marcellus/Utica Pipeline to Southeastern US). The project is called Mountain Valley Pipeline (MVP). A number of West Virginia landowners objected to MVP and would not let surveyors on their property, so MVP (i.e. EQT and NextEra) threatened to sue the landowners claiming eminent domain laws to enter their properties (see WV Landowners Say They’re Bullied by Mountain Valley Pipeline). A month later they did sue (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). But it takes a long time to sue individual landowners in hundreds of cases. So somebody talked to somebody and a bill was introduced in the WV Senate this year, Senate Bill (SB) 596–which would allow surveyors to enter private properties to do survey work as long as a notice was sent by certified mail ahead of time. No doubt the bill was in response to the ongoing, thorny issue of surveying for MVP. The bill passed out of committee with a split vote. But the bill was voted down by the full Senate…
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Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill Headed for 5th Defeat in 6 Years
March 1, 2016March 1, 2016

Although the drilling industry in West Virginia had high hopes that “this was the year” a forced pooling bill would be passed–the latest attempt has once again gone down in flames. Each year the WV legislature meets for a 60-day period at the beginning of the year. Tomorrow (Wednesday) is the 50th day and the last day for a bill to advance out of the house of origin if it’s to be considered by the full legislature–what is known as “crossover day.” House Bill (HB) 4426 is this year’s forced pooling bill, introduced on Feb. 5 (see WV Forced Pooling Bill HB 4426 Introduced – Debate Rages). HB 4426 has until tomorrow to be reported out of committee. It’s not going to happen, meaning it cannot, under the rules of the legislature, be considered for a full vote. The West Virginia Oil and Natural Gas Association sounds rather pessimistic about trying again in the future…
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Industrywide Issues | Statewide WV | Taxation | West Virginia

WV Gov. Tomblin Signs Severance Tax Cut into Law
March 1, 2016March 1, 2016

You may recall our amazement two weeks ago when we reported that West Virginia was on the cusp of passing a bill that will lower the state’s oil/natural gas and coal severance taxes (see WV Senate Passes Bill to Eliminate Part of State Severance Tax). In 2005 when now Gov. Earl Ray Tomblin was then President of the WV Senate, he presided over slapping a new/extra severance tax on oil, gas and coal–for the express purpose of paying down the state’s old workers’ compensation debts. At the time Tomblin promised when the debt was paid off, the tax would end. And by gaw he actually did it. Yesterday Tomblin signed the bill into law. A politician who keeps his word. Rarer than hen’s teeth…
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Energy Services | Industrywide Issues | M3 Midstream | Momentum | Pipelines | Statewide WV | West Virginia | WGL Holdings

M3’s Stonewall Gathering System in WV Gets New Investor/Partner
March 1, 2016March 1, 2016

In April 2015 MDN told you that a section of M3 Midstream’s Appalachia Gathering System (AGS) had been spun off into its own company called Stonewall Gathering System (see M3’s New Stonewall Gathering System Extends Existing AGS in WV). At the time, plans were under way to build out gathering pipelines in West Virginia’s Harrison and Doddridge counties, running through Lewis and into Braxton County where the pipeline will connect with Columbia Transmission’s interstate pipeline. The plans came to fruition and the Stonewall Gathering System was built and now gathers 1 billion cubic feet of Marcellus Shale gas per day (see Construction on WV Stonewall Gather Pipeline Begins, Runs Thru Dec). The project now has a new investor/co-owner. WGL Midstream announced yesterday that it has exercised an option to invest $89 million in the Stonewall Gas Gathering System, representing a 35% ownership stake…
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Accidents | Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | West Virginia

Antero Resources Well Pad Fire in Doddridge County, WV
February 29, 2016February 29, 2016

There was a small fire at an Antero Resources well pad in Doddridge County, WV last Thursday. Antero immediately shut down the four producing natural gas wells and contacted local first responders who put the fire out. The important news is that (a) nobody was hurt, (b) the environment was not harmed, and (c) the wells are secure and there is no danger. What happened is this: When natural gas comes out of the borehole, more than just methane comes out. Along with methane comes other hydrocarbons and water. There is a separating unit on the pad to strip out the water and some of the other substances from the methane. That unit failed, allowing some methane to escape which then caught fire. The good new is that safety precautions worked and the fire did not spread. Below are the details…
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Accidents | Energy Services | Industrywide Issues | MarkWest Energy | West Virginia | Wetzel County

Update on MarkWest WV Plant Hazardous Chemical Spill in Creek
February 29, 2016February 29, 2016

Last week MDN told you about an accident at a MarkWest Energy processing plant in Mobley (Wetzel County), WV in which approximately 3,000 gallons of a heat transfer fluid used at the plant leaked into a nearby creek, causing a shut-down of the water plant serving the nearby community of Pine Grove (see MarkWest’s Mobley Processing Plant Spills Hazardous Oil into Creek). The “rest of the story” is this: Three days after the spill the drinking water ban was lifted and everything is fine. The spill was contained, the water supply was fully protected and no one was ever in danger…
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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…
Read More “Gastar Leaving Marcellus/Utica, Sells Assets to Tug Hill for $80M”
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…
Read More “MarkWest’s Mobley Processing Plant Spills Hazardous Oil into Creek”