West Virginia

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

Odebrecht Moves Forward with WV Cracker Plant Plans
September 2, 2014September 2, 2014

The previously announced ethane cracker plant that is slated to be built near Parkersburg, WV is coming along very nicely, according to Odebrecht spokesman David Peebles. A talk at the West Virginia Chamber of Commerce’s Annual Meeting and Business Summit at The Greenbrier last week, along with conversations with the Parkersburg News and Sentinel, provided some key details about just where the project sits. Once again MDN notices how quickly (and convincingly) the Odebrecht cracker project is progressing after being announced just last fall, as opposed to the ponderous path being taken by Shell with their planned cracker plant, announced 2 1/2 years ago. Neither plant is a done deal, yet. But in light of Odebrecht’s full-speed-ahead attitude and news from last week, it sure seems like the WV cracker is a lot closer to being a done deal than the Shell cracker…
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Lease & Royalty Payments | Statewide WV | West Virginia

Drilling Under the Ohio River in WV – Smart or Dumb?
September 2, 2014September 2, 2014

As MDN reported last week, West Virginia Gov. Earl Ray Tomblin wants to lease the area under the Ohio River that runs through WV for Marcellus and Utica Shale drilling (see State of WV Looks to Lease Area Under Ohio River for Drilling). Tomblin wants a 20% royalty and no deductions (!) from the royalty check for expenses. Other than that, the lease will go to the driller who pays the largest per-acre signing bonus. Will any drillers bother to file a bid if they can’t deduct expenses from royalties? Is Tomblin crazy like a fox with his proposed lease for drilling under the Ohio River? Or is he just crazy? While a former WV Dept. of Environmental Protection (WVDEP) inspector doesn’t call Tomblin crazy, he does think drilling under the Ohio tends to the nutty side…
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Electrical Generation | Industrywide Issues | Marshall County | Regulation | West Virginia

Marshall County Votes to Accept Gas-Powered Electric Plant
August 29, 2014August 29, 2014

In April MDN told you about a plan from a Buffalo, NY company to build an electric generating power plant in Marshall County, WV that will use Marcellus Shale gas to power it (see Marcellus-Powered Electric Plant Coming to Marshall County, WV). The plan is a bit complicated, as we’ve previously outlined. In essence, Moundsville Power, the name of the company, will build the plant and then turn over the deed to the plant to the county. Since it will be county-owned, on paper, the company will not pay any property taxes. Instead, they will pay annual “rental” payments to the county in lieu of property taxes (see Complicated Deal for Proposed WV Gas-Powered Electric Plant). It makes the project affordable and doable. County officials recently approved the plan…
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Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Pipelines | Processing Plants | Wastewater | West Virginia

Mystery Solved: GreenHunter Pipelines to Terminate Near…
August 27, 2014August 27, 2014

Now that U.S. Coast Guard’s comment period for barging frack wastewater is officially closed and a positive decision to move forward is likely, we expect to see more movement from GreenHunter Water on building out their barge facility near Wheeling, WV. As part of GreenHunter’s master plan, the company announced at the end of June that they will build three new (short) pipelines, one each dedicated to brine/wastewater, fresh water, and condensate (see 3 New (Short) Pipelines from GreenHunter in Tri-state Area). The three pipelines will all terminate in the same location–but until now, GreenHunter has been cagey about where (see GreenHunter’s Unidentified Barge Facility Pipeline Destination). We said at the time the betting money is on GreenHunter’s facility in Wheeling. Were we right?…
Read More “Mystery Solved: GreenHunter Pipelines to Terminate Near…”
Lease & Royalty Payments | Marshall County | Pleasants County | Statewide WV | West Virginia | Wetzel County

State of WV Looks to Lease Area Under Ohio River for Drilling
August 26, 2014August 26, 2014

West Virginia Gov. Earl Ray Tomblin is a pro-drilling Democrat–an unusual occurrence. In fact, Tomblin is so pro-drilling, he’s looking to lease the land underneath the Ohio River for drilling! That’s sure to give the nutters in the WV Sierra Club heartburn. The governor and his Commerce Secretary, Keith Burdette, have published an official notice seeking bids from drillers. Tomblin and Burdette want a signing bonus AND a hefty royalty to boot. Although a target per-acre bonus amount has not been specified, Tomblin has publicly stated he’d like to see a 20% royalty on any such under-the-river leases…
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Air Quality | Beaver County | Energy Companies | Energy Services | Ethane | Industrywide Issues | Odebrecht | Pennsylvania | Processing Plants | Shell | West Virginia | Wood County

Cracker Race Continues: Odebrecht Files Remediation Application
August 26, 2014August 26, 2014

The race continues to see who will build the first multi-billion dollar ethane cracker plant in the Marcellus/Utica region. Yesterday MDN brought you the news that Shell had filed, back in May, a detailed air pollution application with the PA Dept. of Environmental Protection (DEP) for their proposed cracker plant in Beaver County, PA (see Details for Shell Ethane Cracker Revealed in Air Pollution Application). Although arriving on the scene several years after Shell’s project, Odebrecht announced last November they want to build a cracker plant near Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Odebrecht has now filed a similar document–a Voluntary Remediation Program application–with the WV Dept. of Environmental Protection (WVDEP)…
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Energy Companies | Industrywide Issues | Natural Resource Partners | Statewide WV | Supply Chain | West Virginia

NRP Buys VantaCore to Supply Rocks to Marcellus/Utica Drillers
August 25, 2014August 25, 2014

Natural Resource Partners (NRP), a company headquartered in Houston, TX but with it’s operations headquarters in Huntington, WV has its fingers in a lot of pies–including coal companies, concrete companies, and oil and gas companies. NRP has just added yet another aggregates (concrete and rocks) company to its portfolio of companies. NRP purchased VantaCore Partners, a Philadelphia company, mainly because of VantaCore’s operations that supply limestone and base material to oil and gas companies in the Marcellus and Utica shale plays. NRP knows a good thing when it sees it…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | NiSource | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf
August 13, 2014August 13, 2014

Columbia Pipeline Group, a division of NiSource, announced yesterday they have decided to move forward with investing $1.75 billion dollars for two new projects. The first is a pipeline project that will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Hence, the new project is called the Leach Xpress. Yes, the marketers at Columbia could of/should of come up with a better name than “leach” for a pipeline, but we’ll just have to live with it (as we sigh and shake our heads). The 160-mile pipeline will pump abundant, cheap Marcellus and Utica Shale gas to various sales points along the pipeline (interconnecting with other pipelines). But perhaps most importantly, it will pump gas to Leach, and that’s the second major project. There is an existing pipeline from Leach all the way to the Louisiana Gulf Coast. That pipeline is called the Rayne, for Rayne, LA. The Rayne Xpress project will beef up the pipeline with new compressor stations to add an additional 1 billion cubic feet per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast…
Read More “Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Randolph County | West Virginia | Wetzel County

Hula Hoops & Tall Tales from WV Anti-Drillers Opposed to Pipeline
August 11, 2014August 11, 2014

We never tire of reading about (and witnessing) stupid antics and statements from anti-drillers. Frankly, it amuses us. It doubly amuses us when we point it out and make fun of them in their own absurd behaviors and statements. The latest instance are those opposing new pipelines in West Virginia. At a meeting last Thursday’s Randolph County, WV Commission meeting, one anti-driller used a hula hoop, and another made the wild claim that methane causes cancer. All in a day’s work for the anti-drilling ignorant…
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American Energy Partners | Belmont County | Energy Companies | Energy Services | Harrison County | Industrywide Issues | Jefferson County (OH) | Marshall County | Monroe County | Ohio | Pipelines | Regency Energy Partners | Utica Shale | West Virginia

McClendon Invests in New Utica Pipeline Project, JV with Regency
August 8, 2014August 8, 2014

It was only in June, less than two months ago, that MDN brought you the news that it sure seems like Aubrey McClendon is building a new company that looks a lot like the first company he built, Chesapeake Energy (see Aubrey McClendon Gets Back into the Midstream Business). McClendon is not only high on Utica and Marcellus drilling with his newly formed American Energy Partners company, he’s also high on building the pipelines needed to conduct the gas out of the borehole. His new midstream division was set up to work on such projects. And less than two months later, we have the first of those projects. Yesterday McClendon’s new midstream division and Regency Energy Partners announced a joint venture to build the Utica Ohio River Project for $500 million…
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Industrywide Issues | Pennsylvania | Research | Statewide PA | Statewide WV | West Virginia

EIA: Marcellus Continues to Break Records – Passes 15 Bcf/d Level
August 6, 2014August 6, 2014

The U.S. Energy Information Administration (EIA) ran an article in their Today in Energy online publication yesterday stating the Marcellus Shale region produced, for the first time ever, more than 15 billion cubic feet of natural gas per day (Bcf/d) in July. The Marcellus, located in Pennsylvania and West Virginia, now accounts for a staggering 40% all U.S. shale gas production. Compare that to just four short years ago, in 2010, when the Marcellus produced 2 Bcf/d. The Marcellus is, without a doubt, the most productive shale play for natural gas in the world…
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Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia | Wetzel County

Wetzel County Tries to Derail New Rules for WV Drill Cuttings
August 4, 2014August 4, 2014

The West Virginia Department of Environmental Protection (WVDEP) is expected to file revisions this week to 33CSR1, the Solid Waste Management Rule, that deal with landfill acceptance of drill cuttings. Until now the state has been operating under “emergency rules” put in place earlier this year. The WVDEP is expected to make those emergency rules permanent as part of of 33CSR1. This issue has been hotly debated in WV since last year when anti-drillers attempted to make a big deal of it (see WV Anti-Drillers Continue to Harp on Drill Cuttings in Landfills). The state legislature, in a special session, passed a bill earlier this year to allow the WVDEP to adopt the emergency rules until final rules are enacted after a process of public hearings (see WV Drill Cuttings in Landfill Bill Passes in Record Time). At the final public hearing in Charleston last week, the Wetzel County Solid Waste Authority submitted two studies they funded on this issue that they say raises troubling questions about the proposed “final” rules…
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Doddridge County | Energy Services | Industrywide Issues | MarkWest Energy | Processing Plants | West Virginia

FirstEnergy Builds Electric Substation for MarkWest WV Plant
August 1, 2014August 1, 2014

Seems to be “electric day” on MDN. We’re noticing several stories about the electric industry’s tie-in with the Marcellus drilling industry. FirstEnergy Corp. announced Wednesday they are building a new $36 million electric substation in Doddridge County, WV to support the Marcellus Shale industry–specifically the nearby electric needs of the MarkWest Sherwood natural gas processing facility. However, an additional 6,000 residents will also benefit from the substation and power line being built…
Read More “FirstEnergy Builds Electric Substation for MarkWest WV Plant”
Braskem | CNG/LNG | Economic Impact | Energy Services | Industrywide Issues | Odebrecht | Processing Plants | Supply Chain | West Virginia | Wood County

Odebrecht Cracker Plant Will be Magnet for Downstream Development
July 30, 2014July 30, 2014

David Peebles, VP of business development for Odebrecht, presented a plan for downstream development related to his company’s proposed ethane cracker plant in Parkersburg, WV at the Department of Energy Quadrennial Energy Review Public Meeting held at Carnegie Mellon University in Pittsburgh on July 21st. The presentation shows how the proposed Odebrecht $2B+ ethane cracker plant is just the beginning of “clusters” of downstream manufacturing facilities that will be built. The cracker plant will act as a magnet for other businesses. Peebles presented the plan to DOE Sec. Ernest Moniz. And, we happen to have a copy!…
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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

EQT Midstream: 2 Major Pipeline Projects Advance, 1 Doesn’t
July 25, 2014July 25, 2014

In addition to yesterday’s big news that EQT has decided to “take the plunge” and drill what is thought to be the deepest Utica Shale well yet, in Greene County, PA (see MDN’s related story today), EQT also announced yesterday their plans for their midstream operations over the coming months. CEO David Porges said EQT Midstream will spend “over $350 million” on midstream projects in 2014. The company has three major pipeline/midstream projects on the books. Porges said two of those projects are advancing while one is going “on the back burner”…
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Energy Companies | Gastar Exploration | Industrywide Issues | Pennsylvania | Reserves (Proved and Unproved) | Statewide PA | Statewide WV | West Virginia

Gastar Proved Reserves Up 43% – 3/4 of it in the Marcellus
July 22, 2014July 22, 2014

Gastar Exploration, a major driller in the Marcellus/Utica, posted a mid-year update on their proved (and unproved) reserves yesterday. When you lump all hydrocarbons together–natural gas, oil and condensate and natural gas liquids (NGLs)–Gastar’s estimated proved reserves totaled 78.0 million barrels of oil equivalent (BOE) as of June 30th. That’s up an eye-popping 43% over the same time last year. Where is all that gas coming from? Three-fourths of it is in the Marcellus/Utica, and one-fourth is in the Mississippi Lime/Woodford Shale in Oklahoma…
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