West Virginia

Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

Odebrecht’s WV Ethane Cracker Plant May Not be Dead After All
November 16, 2015November 16, 2015

Wait a minute! We thought the proposed Odebrecht ethane cracker plant near Parkersburg in Wood County, WV was all but dead. Lifeless. In April the company said it was “re-evaluating plans” to build it (see Odebrecht Pushes the Pause Button on WV Ethane Cracker). In June, Odebrecht’s Brazilian CEO was arrested, casting further doubt on the project (see Odebrecht CEO Arrested; What Does it Mean for WV Cracker Plant?). Since that time we’ve seen a bit of cheerleading and some empty platitudes from WV Gov. Earl Ray Tomblin who hasn’t given up on the project (see WV Gov Tomblin Continues to Cheerlead for Wood Co. Cracker Plant). But we didn’t detect a pulse. Both the Shell cracker (in PA) and PTT Global cracker (in OH) have had robust developments that indicate those plants are making serious progress. But nothing for the Odebrecht project all year long–that is, until now…
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Doddridge County | Energy Services | Industrywide Issues | Pipelines | Summit Midstream | West Virginia

Summit Midstream 3Q15: Current Owner ECP Looking to Sell
November 10, 2015November 10, 2015

Summit Midstream has a small but growing presence in the Marcellus/Utica region largely through purchasing pipeline systems from other companies, including Mountaineer Midstream, Summit’s Marcellus-area pipeline system in Doddridge County, WV. Yesterday the company issued its third quarter 2015 financial results. Of particular note: Summit is majority owned by Energy Capital Partners (ECP), a private equity firm (investment company). ECP is talking about selling their interest. That is, it’s sounding like Summit may soon see a change in ownership. Below is the update on that possible change, along with an update on Summit’s Mountaineer Midstream gathering system…
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Putnam County | Rogersville Shale | West Virginia

2nd Rogersville Shale Test Well Coming to WV
November 9, 2015November 9, 2015

Last year Cabot Oil & Gas drilled the very first test well into West Virginia’s Rogersville Shale (see Cabot Drills Test Well in WV Rogersville Shale, More on the Way?). We later found out the permit was to drill to a total depth of 14,000 feet (see How Deep Did Cabot O&G Drill Their Rogersville Test Well in WV?). Now a second Rogersville test well has been permited–but not to Cabot. The second Rogersville Shale well permit was made last week to Hard Rock Exploration, based in Charleston, WV. Hard Rock’s permit gives it permission to drill down to 15,000 feet into the Rogersville in…
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Industrywide Issues | Marshall County | Sand/Proppant | West Virginia

Unimin Energy Expands Frac Sand Terminal in Benwood, WV
November 4, 2015November 4, 2015

Unimin Energy Solutions – Marcellus/Utica Terminal Network – click for larger version

A Texas-based company, Unimin Energy Solutions, has 11 frac sand terminals throughout the Marcellus/Utica region (see the map). The most recent terminal they opened was this past June in Jerry Run, WV (see Unimin Energy Opens 11th Marcellus/Utica Frac Sand Terminal). Another of those 11 sites is in Benwood (Marshall County), WV. Last week Unimin held a grand opening of its 2nd unit train capable terminal at Benwood. The Benwood terminal now has almost 20,000 tons of silo storage capacity and can load up to 55 frac sand trucks per hour. CSX Railroad shuttles unit trains continuously to replenish frac sand inventory at the site. Details on last week’s soirée…
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Energy Companies | Marshall County | Noble Energy | Utica Shale | West Virginia

Noble Energy 3Q15: Marcellus Prod. Up 50%, 1st Utica Well Drilled
November 3, 2015November 3, 2015

Noble Energy is a global driller involved in a number of shale plays in the U.S. including the DJ Basin, Eagle Ford Shale, Delaware Basin and Marcellus Shale. Noble idled the last remaining drilling rig they were operating in the Marcellus in September (see Noble Energy to Idle Remaining Marcellus Rig Next Month). Even so, they had a banner third quarter in the Marcellus. Noble issued their third quarter update yesterday and although the section on their Marcellus operations is brief (read it all below), it packs a punch. Even with reducing rigs to zero, Noble completed and brought online their first Utica Shale well (in Marshall County, WV). Noble’s production volumes in the Marcellus in 3Q15 rocketed to 493 million cubic feet of natural gas equivalent per day (MMcfe/d), more than a 50% increase over 3Q14 numbers. But wait, there’s more!…
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Energy Companies | Statewide WV | Stone Energy | West Virginia

Stone Energy 3Q15: Shut Down 110 Mmcfe/d of Marcellus Production
November 3, 2015November 3, 2015

Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale. Earlier this year the company released the one active Marcellus rig they were running and said they would not resume drilling in the northeast until receiving a hybrid rig in late 2015/early 2016 that can drill both Marcellus and Utica wells (see Stone Energy 1Q15: No New Marcellus Drilling, But More Production). In September Stone said they were shutting in most of their production in the Marcellus/Utica (see Stone Energy Shuts in Most of their WV NatGas Production). And indeed they did. Yesterday Stone released their third quarter 2015 update and it shows the company turned off the spigots in their northeast operations, cutting out all 100-110 million cubic feet equivalent per day (Mmcfe/d) of production in what they call their Mary field. The company continued to produce 20-25 Mmcfe/d from their Heather and Buddy fields (in the Marcellus). Here’s the latest update from Stone Energy…
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Economic Impact | Electrical Generation | Industrywide Issues | Marshall County | Taxation | West Virginia

Marshall County Commissioner Still Opposes $615M Electric Plant
November 3, 2015November 3, 2015

In August 2014 the Marshall County, WV board of commissioners (a 3-person board) voted to approve a plan to build a Marcellus Shale-powered electric plant in the county (see Marshall County Votes to Accept Gas-Powered Electric Plant). The vote was a bit complicated. In a nutshell, Moundsville Power, a company owned by developers from Buffalo, NY, proposed a deal to the county. They want to build a 549-megawatt plant costing $615 million. But if Moundsville owns the plant, it’s subjected to high property taxes. Moundsville proposed selling the plant to the county but running it for them. In essence the county will own the plant on paper. Because it’s county owned, no property taxes! However, Moundsville would make rental payments to the county–or payments in lieu of taxes (PILOT). The payments would not be as much as if it were taxed–about $13 million less over 30 years. But the county still gets $31 million over those 30 years–and $31M is a whole lot better than $0. Moundsville would not have built the plant at all if not for the PILOT arrangement. One of the three commissioners, Bob Miller, voted against the plan. Now he’s trying to convince the state legislature to overturn the PILOT plan, although he says he still wants the deal with Moundsville to go forward…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Regulation | Statewide WV | West Virginia

WVU Professor “All In” on Obama’s Coal-Killing Clean Power Plan
November 3, 2015November 3, 2015

James Van Nostrand

When liberal Democrat James Van Nostrand, director for West Virginia University’s Center for Energy and Sustainable Development, associate professor of law at West Virginia University, and a man-made global warming Kool Aid drinker addressed a recent forum at Wheeling Jesuit University, he told the audience they should just accept President Obama’s Clean Power Plan (CPP) and its death sentence for the coal industry. He essentially said “just get over it and move on. Lie down and admit defeat.” It put a smile on Van Nostrand’s face that WV Gov. Earl Ray Tomblin has appeared to cave and will pursue a plan to comply with our Dear Leader’s CPP directive, even though 26 states have sued to stop the plan, including WV (see 26 States Ask Federal Court to Shut Down Clean Power Plan Now). Here’s an overview of Van Nostrand’s “just admit you’ve been beaten” speech…
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Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide VA | Virginia | West Virginia | Wetzel County

Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp
November 2, 2015November 2, 2015

Cow Knob Salamander

Contrary to what anti-fossil fuelers would have you believe, midstream companies building big pipeline projects DO listen to concerns and they DO change the route of a pipeline to address those concerns–like changing the route to minimize environmental impacts or to address the concerns of landowners. For example, Dominion has just announced it filed route changes for the Atlantic Coast Pipeline, a $5 billion natural gas pipeline running from West Virginia through Virginia and into North Carolina. The changes are made to minimize impacts on salamanders in two locations, to minimize impacts on a historic district, and to avoid crossing a swamp (yes, a swamp). Somewhere along the way in the past 30 years swamps became precious ecological assets instead of pools of stagnant, smelly, mosquito-infested water that need to be drained (go figure). Dominion is willing to play along. “Hey, if that smelly swamp is important to you, we’ll spend an extra $XX million and go a different route.” Dominion is not alone. Theirs is just the latest example that totally refutes the yarns spun by ninny nanny antis who blat about evil Big Pipelines and how they destroy everything. Here’s the latest “we’ll make some adjustments to the route to keep everyone happy” notice from Dominion…
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Energy Companies | EQT Corp | Industrywide Issues | Pipelines | Regulation | Statewide VA | Virginia | West Virginia | Wetzel County

Mountain Valley Pipeline Files FERC Appl, Now Just Matter of Time
October 26, 2015October 26, 2015

Click on map for larger version

It’s finally official. Although the length of the pipeline changed from 330 miles to 301 miles, and although the number of project partners expanded from the original EQT and NextEra Energy to include WGL Holdings, Vega Energy Partners, and RGC Resources, and although over 100 landowners blocked survey access (later taken to court to force access)–the $3.5 billion Mountain Valley Pipeline (MVP) stretching from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA filed an official application with the Federal Energy Regulatory Commission last Friday. Now it’s just a matter of time. Yes it will take a few years to get it approved and built, but the most important step has been accomplished…
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Allegheny County | Armstrong County | Energy Companies | EQT Corp | Marion County | Pennsylvania | Utica Shale | West Virginia | Wetzel County

EQT Dumps Marcellus Drilling, Concentrates on the Utica in 2016
October 23, 2015October 23, 2015

In addition to releasing their third quarter 2015 results yesterday, the top brass from EQT also held an analyst phone call. On that call we got updated details from EQT’s president of exploration and production, Steven Schlotterbeck, about the single highest initial-producing Utica Shale well ever drilled, EQT’s Scotts Run 591340. We also heard from Steve about two more Utica wells they’re currently drilling–one in Greene County, PA (about five miles from the Scott’s Run well), and one in Wetzel County, WV. But the big news from yesterday’s call came from EQT CEO David Porges. He said EQT has decided to suspend drilling in central PA and in the Upper Devonian–anyplace outside of their “core” Utica locations. Essentially, EQT is giving up on the Marcellus (for now) and going after the Utica instead. This is certainly big news and affects landowners in Marcellus-only areas–pretty much any place outside of southwest PA and the northern panhandle of WV. Porges says IF the Utica pans out as expected, it will be bigger than the Marcellus production-wise over time. EQT’s current thinking is that they will trim their drilling program to concentrate on drilling 10-15 Utica wells in 2016…
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Dominion Energy | Energy Services | Harrison County | West Virginia

Dominion Employees Move into Swanky New WV HQ Office Building
October 22, 2015October 22, 2015

Click image for larger view

Dominion Transmission announced yesterday that they have completed building a brand new 106,000 square foot office building in Bridgeport, WV and some 300 employees have moved into the new facility. Those 300 employees used to work at a facility in Clarsburg, WV, a few miles from the new facility. Dominion says they will continue adding employees at the new facility as they ramp up to build the Atlantic Coast Pipeline, a $5 billion pipeline that will run from WV through VA and into NC. The new office building is the regional headquarters for Dominion’s 7,800-mile pipeline system. WV Gov. Earl Ray Tomblin was happy as a clam and said the company is committed “to the ongoing development of West Virginia’s natural gas industry.” Here’s more about Dominion’s swanky new office building in Bridgeport…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Wastewater | West Virginia

French Company Confirms Building $275M Wastewater Plant for Antero
October 22, 2015October 22, 2015

In August MDN brought you the news that Antero Resources has decided to build a new state-of-the-art frack wastewater treatment plant in Doddridge County, WV for $275 million (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The plant will process up to 60,000 barrels per day of flowback and brine (or “produced water”). We also told you there is a bit of controversy about the project. Antero selected French-based Veolia to build and operate the plant instead of using WV-based Fairmont Brine Processing (see Did Antero Pull the Rug Out from Under Fairmont Brine Processing?). Land clearing was already underway at the Antero site, and permits already applied for, when the news broke in August. Which makes it kind of strange when we saw a press release issued this morning from the Paris, France-based Veolia touting that Antero has selected them to build the plant. Was there ever any doubt? Why did Veolia wait two months to issue their own press release that essentially repeats the details in the earlier Antero press release? Here’s the Veolia press release, fwiw…
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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

Databook Vol. 2: List of 101 Infrastructure Projects Worth $83B!
October 21, 2015November 2, 2015

MDN has just published Volume 2 of the 2015 Marcellus and Utica Shale Databook. In 90 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 maps 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. In addition, MDN editor Jim Willis spent several weeks compiling and completely revising a list of major pipeline and infrastructure projects happening throughout the northeast (and Midwest)–any project that affects takeaway capacity in the Marcellus/Utica. Jim found 101 projects in this updated list (sample below). If all projects get built, it represents a flabbergasting $83 billion worth of investment! 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. Take a look at our sample pages below…
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Electrical Generation | Industrywide Issues | Ohio | Statewide OH | Statewide WV | West Virginia

6 NatGas-Powered Electric Plants On the Way in OH/WV
October 19, 2015October 19, 2015

With President Obama’s war on coal in full swing, so-called renewable energy sources like wind and solar can’t possibly pick up the slack from coal-powered electric generating plants shutting down. Coal-fired electric plants are shutting down at an alarming rate–we’ve lost 11 million megawatts of coal-fired electric capacity in the past year alone. That situation spells opportunity for natural gas. One reason that natgas is making inroads in the electric generating space is because it’s a whole lot cheaper today than it was just a few short years ago to use clean-burning natural gas to power electric plants. In 2008 the price of natural gas sold for an average of $13 per thousand cubic feet (Mcf). Today? The price of gas has been bumping along at around $2.75/Mcf. In places like southwest Pennsylvania and eastern Ohio Marcellus and Utica gas sells for around $1.50-$1.75/Mcf. So it’s no wonder electric plants powered by natural gas are springing up all over the place. Below is a quick look at six such plants in eastern Ohio and West Virginia…
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Energy Companies | Gastar Exploration | Marshall County | West Virginia | Wetzel County

Gastar Puts All Marcellus/Utica Assets (Leases/Wells) Up for Sale
October 15, 2015October 15, 2015

What a difference a few months, or even a week, can make. In August, Gastar Exploration, which owns roughly 60,000 acres of leases in the Marcellus/Utica mostly in Marshall and Wetzel counties in West Virginia, was talking up their drilling program in the northeast (see Earnings Call Reveals More Details on Gastar’s Marcellus/Utica Plans). Just last week we reported on Gastar CEO Russ Porter’s talk at OGIS in San Francisco about the Marcellus/Utica and what’s ahead for his company (see Gastar CEO Porter Talks about Marcellus/Utica at San Fran Conf). Lately it seems like Gastar, which also drills in the Mid-Continent region of the country, has been giving a little more love to Mid-Continent area because gas prices in the northeast remain stubbornly low. Looks like the Mid-Continent is about to get all of Gastar’s love. The company announced yesterday they’ve put all of their Marcellus/Utica assets up for sale, including leases and drilled/producing wells…
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