West Virginia

Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | Triad Hunter | West Virginia

Magnum Hunter’s Pipeline System Boosts Volumes in OH/WV
September 26, 2014September 26, 2014

A second announcement from Magnum Hunter over the past two days is not nearly as important as the first–but interesting nonetheless. Magnum Hunter announced yesterday that Eureka Hunter–Magnum’s pipeline gathering subsidiary–has bumped up the volume of gas flowing through the system to an average 316,500 million Btus per day, or roughly 307 million cubic feet (Mmcf) per day. Fully one-third of the gas flowing through the system, which is located in West Virginia and Ohio, comes from another Magnum Hunter subsidiary–Triad Hunter. Lot’s of “Hunters” out there. 😉 Here’s the announcement of the increasing volumes flowing through Eureka Hunter’s pipelines these days…
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Allegheny County | Economic Impact | Energy Services | Ethane | Industrywide Issues | NGLs | Odebrecht | Pennsylvania | Processing Plants | West Virginia | Wood County

A Present for Attendees of Shale Gas Insight – Peebles Column
September 24, 2014September 24, 2014

Just in time for the attendees of Shale Insight in Pittsburgh to read, a guest commentary was published in today’s edition of the Pittsburgh Post-Gazette by David Peebles, the man helping to build a $3 billion ethane cracker plant in Parkersburg, WV. David waxes eloquent on shale, ethane and energy security…
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Industrywide Issues | Marshall County | Ohio County | Research | Statewide WV | West Virginia

Report Shows Dramatic Increase in Water/Sand Usage in WV Drilling
September 23, 2014September 23, 2014

A few years ago drillers in Ohio and Marshall counties in West Virginia would use an average 1 million pounds of frack sand and 4 million gallons of water. Today, because the horizontal portion of the wells are longer (longer “laterals”), those numbers are closer to 13 million pounds of sand and 10 million gallons of water, according to a Wood Mackenzie report…
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Economic Impact | Industrywide Issues | West Virginia | Wetzel County

Wetzel County, WV Schools Score $4.7M Surplus from Marcellus
September 22, 2014September 22, 2014

What a difference a few years makes. Not so long ago school districts in Wetzel County, West Virginia were forced to cut electives and take other belt-tightening measures due to lack of funds. For fiscal year 2013–the current budget year–the school has an extra $4.7 million in revenue to spend (more than 10% of it’s overall budget). It’s a complete reversal from just two years ago. Where did the extra funds come from? Did Sen. Jay Rockefeller open his extensive coffers (worth $100 million or more) and bestow money on the county? Nope. Did the teacher’s union renegotiate salaries down for their members? Not on your life–what are you crazy?! Did the state send along some of its surplus? What surplus? The state actually cut back on their aid to the county. The answer, of course, is that Marcellus drilling has taken off in Wetzel in a big way and property tax collections have gone through the roof…
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Industrywide Issues | Regulation | Statewide WV | Trucking | West Virginia

WV PSC Gets Fed Money to Increase Truck Inspections Near Drilling
September 10, 2014September 10, 2014

Truck drivers in West Virginia–particularly in areas where there’s a lot of Marcellus Shale drilling activity–you’ve been put on notice by the WV Public Service Commission (PSC) that they’re stepping up the frequency of inspections. The WV PSC has received a $180,000 grant from the U.S. Department of Transportation Federal Motor Carrier Safety Administration (FMCSA) that allows them to pay for overtime for officers to step up the number of truck inspections. Regular patrols will continue, however, the grant money allows the PSC to increase patrols in certain areas, which will include…
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Energy Companies | Gastar Exploration | Marshall County | Utica Shale | West Virginia

Gastar’s First Utica Well Shines – Nearly 30 Mmcf/d
September 8, 2014September 8, 2014

Gastar Exploration is out today with an operations update for their Utica drilling program. The company reports initial production on their first-ever Utica Shale well, drilled in Marshall County, WV, is flowing at a rate of 29.4 million cubic feet of gas per day. Those numbers easily put Gastar’s first Utica well among some of the top performers. According to Gastar CEO Russell Porter, they plan to drill “one or two” more Utica wells later this year/early 2015, get the results, ans then make a decision on how aggressively they’ll roll out their full Utica drilling program. Here’s the details on Gastar’s first Utica well…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Jackson County | Marshall County | Noble County | Ohio | Pipelines | West Virginia

3 Big Compressors Coming with Columbia’s OH Pipeline Project
September 8, 2014September 8, 2014

Representatives for Columbia Gas Pipeline are making the rounds and talking with officials in various communities where the planned expansion of their pipeline will happen. Columbia, as MDN previously reported, is spending $1.75 billion on two pipeline projects that will help move Marcellus Shale gas to the Gulf Coast (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). One of those projects is called the Leach Express–starting in Marshall County, WV and ending up in Leach, KY (hence the name). Along the way three new compressor stations will need to be built, which is the focus of this story…
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Energy Companies | Industrywide Issues | Regulation | Statewide WV | Trans Energy | West Virginia

Trans Energy Fined $3M for Polluting WV Creeks & Swaps with Dirt
September 4, 2014September 4, 2014

Trans Energy, a smaller, “pure play” driller in the West Virginia Marcellus Shale, has just been slapped bigtime by the federal Environmental Protection Agency along with the WV Dept. of Environmental Protection. The EPA announced a deal with Trans Energy whereby the company will pay an astounding $3 million fine for “unauthorized discharge of dredge or fill material” into creeks and swamps in 15 different locations. Apparently Trans Energy didn’t get a “Mother May I?” permit when building roads and pushing dirt around at some of their Marcellus drilling sites and so will now pay a heavy fine. Oh, and speaking of the $3M fine–it will be split 50/50 between the EPA and the WVDEP. Party time at EPA HQ!…
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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…
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