West Virginia

Energy Companies | Equinor/Statoil | Gastar Exploration | Jay-Bee Oil & Gas | Lease & Royalty Payments | Marshall County | Noble Energy | Statewide WV | Triad Hunter | Tyler County | West Virginia | Wetzel County

More Bids to Drill Under WV State-Owned Land, Incl Ohio River
January 27, 2015January 27, 2015

West Virginia keeps up its aggressive push to lease and allow drilling under state-owned land–both under the Ohio River and under other tracts of state-owned land in prime Marcellus/Utica country. Last Friday the state Dept. of Commerce, responsible for overseeing the leasing program, opened its latest round of bids. Some of them are truly eye-popping. You may recall Antero Resources has paid $12,000 per acre (with 20% royalties) to drill under 518 acres of the Conaway Run Wildlife Management Area (see Record High Bid to Drill Under Bambi’s Home in Tyler County, WV). In the bids opened Friday, Jay Bee bid an even higher price to drill under the Jug Wildlife Management Area, also in Tyler County…
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Industrywide Issues | Research | Statewide WV | West Virginia

MDN Exclusive: WV Horizontal Well Production Report w/Well Names
January 26, 2015January 26, 2015

The West Virginia Dept. of Environmental Protection (WVDEP) requires annual reporting of production data–woefully out of step with both Ohio (quarterly reports) and Pennsylvania (monthly reports starting in March 2015). The WVDEP “requires” drillers to file reports by March of each year–but many wells did not list production data for 2013 until “recently”–in September 2014. What does the data show? Production varies widely depending on the geography. Below are some examples, along with the complete production report from 2013 for horizontal wells in WV, specially produced to show the well name (available only from MDN)…
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Energy Companies | Lease & Royalty Payments | Marshall County | Noble Energy | West Virginia

WV Leases Another 1,400 Acres Under Ohio River for Drilling
January 21, 2015January 21, 2015

More drilling under the Ohio River is about to become reality. Last October, MDN told you about the deal to lease a 232-acre tract of land around and under the Ohio River in Marshall County, WV. The state leased the land for drilling to Gastar Exploration for $3,500 per acre plus a 20% royalty (see Gastar Wins Lease to Drill Under Ohio River in WV). That deal netted WV a tidy signing bonus check for $812,000, to say nothing of the royalties they’ll get once the gas starts to flow. WV liked that deal and decided to put more land under the river on the market (see WV Looks to Lease More Ohio River, Other State Land for Drilling). Yesterday the state confirmed they are close to finalizing a deal with Noble Energy to lease another 1,400 acres of state-owned land around and under the Ohio River–also in Marshall County. This new deal also nets the state $3,500 per acre, or $4.9 million, as a signing bonus…
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Pennsylvania | Statewide PA | Statewide WV | West Virginia

WV Gov Earl Ray Tomblin Praises Marcellus Shale During Speech
January 21, 2015January 21, 2015

At Pennsylvania Gov. Tom Wolf’s inauguration yesterday, Wolf didn’t even mention the word “Marcellus” and said nothing of shale drilling in the state beyond a vague statement about the state being “blessed with an abundance of natural resources” which includes “gas.” Compare Wolf’s total lack of acknowledgement of the Marcellus and the key role it plays in Pennsylvania with the West Virginia Gov. Earl Ray Tomblin’s State of the State speech last week, a speech in which he positively gushes about the Marcellus, by name. Tomblin even treats two representatives from Southwestern Energy present in the audience as exalted guests, asking them to stand for applause (Southwestern has just invested $5 billion in WV). The kicker: both governors are Democrats. In part, here’s what Tomblin said last week in his annual speech to the state:
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Energy Companies | Gulfport Energy | Marshall County | Ohio County | Utica Shale | West Virginia

Gulfport Energy Enters WV Utica, Leases in Ohio/Marshall Counties
January 19, 2015January 19, 2015

Looks like Gulfport Energy, with 184,000 acres of leases and an active driller in eastern Ohio’s Utica Shale, is making moves into the West Virginia Utica Shale. We spotted an article that says Gulfport has purchased an 87.5% stake in “hundreds of lease agreements” in Ohio and Marshall counties in WV. We don’t know how many acres are involved (yet). But we do know who they’ve purchased the leases from…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Pennsylvania | Research | Statewide NY | Statewide PA | Statewide WV | Wastewater | West Virginia

Yet Another Duke University Study Smears the Marcellus Industry
January 15, 2015January 15, 2015

Let’s see, it’s a new month in a new year–must be time for a new Duke University study (located in North Carolina) to pop up smearing Marcellus Shale drilling (located in Pennsylvania and West Virginia). Yep, that’s just what’s happened. The new study, titled “Iodide, Bromide, and Ammonium in Hydraulic Fracturing and Oil and Gas Wastewaters: Environmental Implications” was published yesterday in the “peer reviewed” journal Environmental Science & Technology. Here’s all you need to know about this “study”: The lead author is a Duke University student (looking to make a name for herself), and it was funded by the virulently anti-drilling Park Foundation. Which means the outcome of the so-called “study” was written before the first test tube was held over a Bunsen burner…
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Air Quality | Health Impacts | Industrialization | Industrywide Issues | Research | Statewide WV | Wastewater | West Virginia

WVU Launches 5-Year Study of Local Frack Site for Air, Noise, H&S
January 13, 2015January 13, 2015

This is very cool. A West Virginia University professor, now interim chairman of WVU’s School of Public Health (Department of Occupational and Environmental Health Sciences), is going to perform some REAL science. Dr. Michael McCawley is someone we’ve highlighted before. He’s done some excellent research on air quality near drill sites (see WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites). Dr. McCawley is launching the Marcellus Shale Energy and Environment Laboratory (MSEEL)–a project that will drill a test well and provide real-time air, noise, occupational safety and health monitoring over a five-year period. It is one of three such projects approved and funded (in part) by the U.S. Dept. of Energy…
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Industrywide Issues | Monongalia County | Supply Chain | West Virginia

Seeing Purple: Land Management Company Opens Office in WV
January 9, 2015January 9, 2015

Purple Land Management, a ~~Houston~~ Fort Worth, TX-based company that performs a variety of services (mapping services, title services, surveying, etc.) has just opened a new office in Morgantown, WV to better serve the Marcellus and Utica Shale region. The Purple announcement…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Eureka Hunter Nears 1/2 Billion Cubic Feet per Day in WV/OH
January 8, 2015January 8, 2015

Magnum Hunter announced yesterday that its pipeline/midstream subsidiary Eureka Hunter has set a new record. Eureka pumped more than 400,000 million Btus per day (MMBtu/d) in West Virginia and Ohio by the end of December, and they expect to be pumping more than 500K MMBtus by the end of this month. A half million MMBtus works out to be roughly half a billion cubic feet of natural gas per day…
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Pennsylvania | Statewide PA | Statewide WV | West Virginia

Reminder: Enter to Win $25K Prize in Shale Gas Innovation Contest
January 8, 2015January 8, 2015

Attention small businesses, researchers and entrepreneurs in Pennsylvania or West Virginia. If you have a new product or service that serves the shale energy space, submit your application (FREE to enter!) for the Ben Franklin Shale Gas Innovation and Commercialization Center’s 4th Annual Shale Gas Innovation Contest before the February 1, 2015 deadline. If you do, you’ll be in the running to receive a $25,000 prize. Four such prizes are awarded each year. What are you waiting for?! Details…
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Antero Resources | Energy Companies | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Antero Resources Lays Off 250 Landmen, Blames Low Oil Prices
January 7, 2015January 7, 2015

Antero Resources said on Monday it will lay off more than 250 contract land brokers operating in West Virginia, Ohio and Pennsylvania. The layoffs will not affect any Antero employees–only contract workers (landmen and others) who work to get leases signed, sealed and delivered for future drilling. Antero blames the low price of oil, which causes the price they get for their Marcellus/Utica natural gas liquids to be low, which means they’ll stick to drilling on the half million plus acres they already have under lease…
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Axiall | Energy Companies | Energy Services | Gastar Exploration | Hydraulic Fracturing | Industrywide Issues | Litigation | Marshall County | West Virginia

Gastar Wins WV Lawsuit to Keep Fracking, Completes 10 New Wells
January 5, 2015January 6, 2015

In November we told you that Chemical manufacturer Axiall, with a plant in Natrium (Marshall County), WV, had successfully stopped Gastar from fracking several drilled shale wells located near the chemical plant (see Gastar Fracking Near WV Chemical Plant Halted Pending Court Review). Axiall was afraid that fracking the wells would release fugitive methane into their nearby brine wells. Axiall says something similar happened previously with some of their brine wells near a Triad Hunter fracking operation. But Gastar fought back and today announced a WV court has thrown out the lawsuit brought by Axiall and that Gastar is now free to frack. According to Gastar, Axiall tried to stop them in PA with a similar kind of lawsuit which was also dismissed…
Read More “Gastar Wins WV Lawsuit to Keep Fracking, Completes 10 New Wells”
Energy Services | Energy Transfer Partners | Industrywide Issues | Lease & Royalty Payments | Pipelines | Tyler County | West Virginia

What’s a Fair Price for Running Pipelines Through Your Property?
January 5, 2015January 5, 2015

The landowners in Tyler County, WV who sit along the proposed route of Energy Transfer Partners 800-mile, $4.4 billion pipeline, called Rover, to connect the Marcellus/Utica region with the Midwest and Canada are asking for one thing: a fair price. According to one landowner, they’ve received an offer from ETP that’s about 1/3 of where it should be. Problem is, if landowners don’t accept ETP’s offer, once the Federal Energy Regulatory Commission (FERC) approves the pipeline, ETP can then use eminent domain to simply take the land it needs and pay the price it wants to pay. Landowners’ only recourse at that point is to ask a court to arbitrate a price. No, we’re not fans of eminent domain–it’s an imperfect concept for an imperfect situation in which some hold-out landowners remain unreasonable. But that doesn’t excuse lack of a fair price. So what price has been offered and what do landowners think is a fair price to receive?…
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Chevron | Energy Companies | Lease & Royalty Payments | Marshall County | West Virginia

Moundsville Leases Park Land for $5K/Acre, 18% Royalties
December 31, 2014December 31, 2014

Moundsville (Marshall County), WV recently signed a deal with Chevron that allows Chevron to drill under (not on) the municipal-owned Valley Fork Park. The deal leases the park’s 14.95 acres for $5,000 per acre plus 18% royalties when the gas begins to flow. Moundsville received $74,750 up front in lease bonus payments…
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Statewide WV | West Virginia

WV Sees Slower Drilling, Crews Go Home for Winter
December 30, 2014December 30, 2014

According to an article today in the Logan (WV) Register-Herald, most fracking crews operating in the Mountain State have gone home for the winter with “don’t call us we’ll call you” instructions. Drilling rigs are idled in WV. Why? According to the article, because of the low-and-getting-lower commodity price of natural gas. While the WV economy is still booming, certain businesses, like restaurants and hotels, are taking a hit due to the absence of drilling activity. When will it improve again?…
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Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Southwestern Energy | Statewide WV | West Virginia

Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre
December 29, 2014December 29, 2014

Last week MDN told you that Chesapeake Energy closed on a deal to sell some 413,000 Marcellus Shale acres, mostly in West Virginia (some in Pennsylvania) to Southwestern Energy (see Chesapeake Using $1B from Southwestern Deal to Buy Back Stock). The deal ended up being worth $4.975 billion, discounted from the original $5.375 billion because Southwestern agreed not to sue Chessy for “title defects” when and should that occur. As we said at the time, we’re not sure if a $400 million discount is a good deal or not in the case some of the titles to leases aren’t free and clear. But the bigger story, in our humble opinion, is this: Chesapeake picked up some of those leases that originally paid landowners as little as $5 per acre and as much as $5,000 per acre. They just turned around and sold those same leases for $12,000 an acre. That made corporate raider Carl Icahn, Geppetto pulling the strings at Chesapeake, really really happy…
Read More “Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre”