West Virginia

Economic Impact | Industrywide Issues | Ohio County | Supply Chain | West Virginia

Oglebay Resort Profits from NE Shale in a Way You’d Never Guess
April 10, 2014April 10, 2014

The Oglebay Resort & Conference Center by all accounts is a spectacular venue and the perfect place to hold a conference. With 1,700 acres near Wheeling, WV, Oglebay offers 271 rooms, 54 standalone cottages, a spa, indoor pool, jacuzzi, sauna, top notch cuisine and dining…you get the picture. The West Virginia Oil & Natural Gas Association (WVONGA) chose Oglebay to host its first-ever ShaleSafe Conference & Expo, held earlier this week (see a pair of MDN stories about the event in today’s lineup).

The purpose of this story is to highlight how Oglebay is benefiting (profiting!) from the shale drilling industry. Given their great location, in the middle of shale drilling on all sides (SW PA, WV, OH), it’s no surprise that Oglebay is happy to host a number of shale and oil & gas related events. It’s an important new revenue stream for them. With pristine countryside and unparalleled views, with old-growth trees and wildlife frolicking around the 1,700 acres, you would certainly want to protect and maintain it. But wait, what’s this? Oglebay leased their land for drilling in 2009 (gasp) and they now receive royalty checks too? That’s right–and when you visit Oglebay with its pristine countryside and unparalleled views, you’d never know it unless they told you…
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Accidents | Energy Companies | Energy Services | Gastar Exploration | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Gastar Shuts-in Marshall County Wells Due to Pipeline Explosion
April 9, 2014April 9, 2014

Last Saturday morning a Williams pipeline in Marshall County, WV ruptured and caught fire (see Williams Pipeline Rupture/Fire in Marshall County, WV). We still don’t know the cause for sure, but it’s looking like there was a small landslide from a hill that triggered the rupture and explosion.

Already that single 12-inch pipeline is having an effect on some Williams customers. Gastar Exploration with wells in Marshall County issued a statement on Monday to say they’ve had “shut-in” their wells in the area because of the pipeline outage. We have the Gastar statement below, along with a first-hand, eyewitness account of the explosion from a nearby neighbor…
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Accidents | Energy Services | Industrywide Issues | Marshall County | Pipelines | West Virginia | Williams

Williams Pipeline Rupture/Fire in Marshall County, WV
April 7, 2014April 7, 2014

A 12-inch natural gas pipeline owned by Williams Partners in Marshall County, WV ruptured and caught fire Saturday morning around 8 am. The early reporting says a landslide from a nearby hill caused the rupture, which happened to a section of pipeline between Waymans Ridge and Middle Grave Creek. Some residents living near the pipeline were evacuated as a safety precaution.

We don’t have a lot of details–here is what we know so far:
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Blue Racer Midstream | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Blue Racer Natrium Wet Gas Processing Plant Addition Almost Ready
April 7, 2014April 7, 2014

Last September an explosion and fire at Blue Racer Midstream’s Natrium, WV natural gas processing plant closed the plant (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). The plant remained closed for five long months, causing some of their customers, including Rex Energy and Atlas Resources, to find alternatives to process wet gas (see Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014).

It certainly was a happy day in January when the facility came back online, with repaired and new equipment, and a new alarm system for the nearby community. Always in the cards was an expansion of the processing capacity at the Natrium facility–doubling the ability to process and separate wet gas from 200 million cubic feet per day to 400 Mmcf/d. Blue Racer, when announcing the re-opening of the original plant in January, also announced they already have four new customers lined up for the extra/new capacity (see Blue Racer: Natrium Plant Back Online, New Customers, Adds Barging). Good news for those new customers–the extra capacity is about to go online…
Read More “Blue Racer Natrium Wet Gas Processing Plant Addition Almost Ready”
Landowner Coalition News | Lease & Royalty Payments | Ritchie County | West Virginia | Wirt County | Wood County

Wirt County WV Coalition Still in Hunt for a Deal – Who With?
April 7, 2014April 7, 2014

Last summer it seemed like a deal to lease 241,000 acres of land in the Wood, Ritchie, Calhoun, Roane, Jackson and Wirt County area was imminent (see Wirt County Landowner Group Close to Deal for Huge 241K Acres). But then in October Jim Lydon, chairman of the Wirt County Oil and Gas Group said the deal fell through and they were still shopping for a deal (see Wirt County Landowner Deal Falls Through, Still Searching).

According to Lydon the land in their massive coalition is in the “super wet area” of both the Marcellus and Utica Shale–and indeed he’s right. The group is still searching for a deal and no one is talking (that we can tell) on the record–although an article published yesterday in the Parkersburg News and Sentinel does mention, in passing, a few possible companies that may be talking with the group about a new deal…
Read More “Wirt County WV Coalition Still in Hunt for a Deal – Who With?”
Energy Companies | EQT Corp | Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

WV Chief of Homeland Security Not Concerned About Drill Cuttings
April 3, 2014April 3, 2014

For all the hoopla from anti-drillers in West Virginia over radioactivity in drill cuttings (leftover rock and dirt from drilling the borehole), and the disposal of those cuttings in landfills, you would think the state is in imminent danger of becoming a nuclear waste dump–glowing in the dark and visible from satellites passing through the night sky (see WV Anti-Drillers Continue to Harp on Drill Cuttings in Landfills).

The chief of Homeland Security and Emergency Response for the West Virginia Dept. of Environmental Protection says the DEP recently tested drill cuttings from EQT heading to the landfill and found radiation levels to be so low, they were barely detectable. In his words, “I am not concerned about it”…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Pipelines | Statewide WV | West Virginia

Eureka Hunter Gets New $117M Line of Credit, Expansion Continues
March 31, 2014March 31, 2014

Eureka Hunter Pipeline, a subsidiary of Magnum Hunter, is a small but growing midstream company with most of its operations in West Virginia (see these MDN articles about Eureka Hunter and their recent expansion). Apparently they plan to keep on growing. Today Eureka Hunter announced they’ve got a new line of credit at the bank–for a cool $117 million. Their line of credit can grow to $150 million under the right conditions.

Magnum Hunter CEO Gary Evans says the new credit line means MH itself won’t have to float cash to the midstream subsidiary like it does now–meaning more flexibility and Eureka Hunter can expand faster. And that’s a good thing! Here’s the Eureka Hunter announcement posted today:
Read More “Eureka Hunter Gets New $117M Line of Credit, Expansion Continues”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Commerce Sec Burdette Praises Odebrecht/Antero, Warns Drillers
March 28, 2014March 28, 2014

Aside from WV Gov. Earl Ray Tomblin, no one in West Virginia has been more dedicated, more focused and more committed to finding an ethane cracker plant for the state than WV Commerce Secretary Keith Burdette. MDN has stories going back years that mention Burdette and his quest for a cracker (just one example: WV’s Burdette Still in Hunt for Ethane Cracker Plant). We think it’s a fair statement to say without Burdette, the Odebrecht cracker plant project would not have happened. Our hat is off to Keith and the marvelous work he’s done for the state.

Yesterday Keith delivered a rousing speech at the Marcellus to Manufacturing Ethane Development Conference at the Charleston Civic Center. We have a transcript of his speech below. In it, Keith acknowledges the contributions of Odebrecht’s David Peebles in making this project happen. He also praises Antero Resources for their bold and brave commitment to providing half of the ethane for the new cracker plant. Finally, Keith sounds a word of warning to other drillers that are signing agreements to ship ethane out of the northeast region. He believes they may want to reconsider. The northeast has enough ethane for “a dozen crackers” if so much of it wasn’t heading to the Gulf Coast or Canada via pipeline…
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Housing | Industrywide Issues | Marshall County | West Virginia

Man Camps Spring Up in Marshall County, WV Near Drill Sites
March 28, 2014March 28, 2014

Housing for workers is always an issue when a lot of drilling comes to town. Even if rig workers are not from out of state, more times than not, they are from another area in the state being drilled. That is, they’re still “out of towners” and they need a place to stay. Sometimes drillers will rent hotel rooms for workers. Sometimes RV parks fill up. And sometimes local apartment rentals go through the roof, creating a “crisis” for welfare slugs who need to rent a decent place to live while they don’t work (see New Study Claims Housing Crisis in NE PA from Gas Drilling).

Enter the man camp. Or as it’s called in Marshall County, WV, the “labor camp.” Labor camp sounds like something from North Korea or the old Putin-style Soviet Union. At any rate, labor camps are springing up in Marshall County, WV to handle some of the need for workers to have a place to stay while working on rigs that move from place to place…
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Education | Energy Companies | Industrywide Issues | Noble Energy | Statewide WV | West Virginia

Noble Energy Donates $250K to WV Community College Program
March 28, 2014March 28, 2014

Noble Energy certainly live up to it’s name of “noble.” Earlier this week Noble announced a $250,000 one-time gift to the West Virginia Community College’s new Appalachian Petroleum Technology Training Center. The Center offers one-year certifications and two-year degrees in petroleum technology–just one of 14 programs in the country like it. MDN previously wrote about the new program in May 2013 (see New Appalachian Petroleum Technology Training Center in WV). Graduates coming from the program have the ability to earn between $60,000-$100,000 per year–starting! It’s a fabulous program and Noble has really stepped up to the plate to ensure the program not only survives, but thrives–so kudos to Noble.

Here’s the announcement from the Community and Technical College System of West Virginia (WVCTCS):
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Antero Resources | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

Antero to Provide 50% Ethane Needed at Parkersburg Cracker Plant
March 27, 2014March 27, 2014

The ethane cracker plant planned for Parkersburg (Wood County), WV, to be built by Odebrecht and operated by Odebrecht subsidiary Braskem America, took another giant step closer to reality yesterday. Powerhouse Marcellus/Utica driller Antero Resources announced they will provide 30,000 barrels per day of ethane for the proposed new plant when/if it gets built. That’s half of what the plant needs to operate. Antero Resources CEO Paul Rady was joined by Odebrecht VP of business development David Peebles on stage at the Marcellus to Manufacturing Ethane Development Conference at the Charleston Civic Center for the big announcement yesterday. WV Gov. Earl Ray Tomblin took to the stage to crow about the deal too (he’s earned the right).

It was just Monday of last week that MDN observed that the Odebrect cracker plant just “feels” like it’s going to happen (see Odebrecht’s WV Ethane Cracker has The Big Mo–Momentum). Yesterday’s Antero announcement is more evidence of that. Below is the official Antero announcement about their ethane contribution to the proposed new cracker, along with a report of who said what about the deal at yesterday’s Charleston conference…
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Ethane | Industrywide Issues | Meetings | Statewide WV | West Virginia | Wood County

WV Marcellus to Manufacturing (M2M) Talks Crackers, Jobs & More
March 27, 2014March 27, 2014

The 2014 Marcellus to Manufacturing Ethane Development Conference (M2M) is part of a larger event taking place this week in Charleston, WV–the West Virginia Construction and Design Expo, being held at the Charleston Civic Center. Yesterday most of the talk at M2M revolved around the Antero Resources announcement that they will provide 30,000 barrels of ethane per day for the proposed Odebrecht cracker plant (see today’s lead story). However, there were other presentations and topics, including jobs, the petrochemical industry in WV, and more.

Here’s a first-hand account of yesterday’s M2M from a Parkersburg reporter:
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Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Taxation | West Virginia

Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax
March 26, 2014March 26, 2014

A few weeks ago MDN said the plan floated by lefties and libs to create a so-called uniform severance tax across PA, OH and WV is one of the dumbest things we’ve heard in a long time (see Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV). The plan as proposed means all three states hold hands and jump off the economic cliff together. Apparently it’s more fun to die together (economically) than alone.

MDN is not the only voice to point out the lunacy of this plan. The head of the PA Chamber of Business and Industry also says the proposed mega-tax is nuts. As Gene Barr highlights in the following letter to the editor, it’s apparent the people proposing such a plan–including the Pennsylvania Budget and Policy Center–are ignorant of how taxes in PA and other places actually work. You would think an organization with a name that includes the word “budget” would employ at least one economist or accountant. Apparently they don’t. They are economic illiterates who don’t realize what they are proposing is anything but fair–especially to Pennsylvanians…
Read More “Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Research | Statewide WV | West Virginia | Wood County

Report: Coming Economic Miracle in WV from Ethane Cracker Plant
March 24, 2014March 24, 2014

In February MDN told you about a newly released research report from Tom Witt, economist and former director of West Virginia University’s Bureau of Business and Economic Research and professor emeritus at WVU. Witt, now a private consultant, took a close look at realistic numbers for how many jobs and how much money the proposed Odebrecht ethane cracker and associated petrochemical plants will generate for WV and the region (see Economist Releases Report on WV Cracker Plant’s Economic Impact). The numbers are truly astonishing.

In February we could not get our hands a copy of the study, which is titled “Building Value from Shale Gas: The Promise of Expanding Petrochemicals in West Virginia.” We now have a full copy and have embedded it below. We also have an editorial written by Witt and published a few days ago describing the study and his take on the coming economic miracle in WV from Odebrecht’s ethane cracker plant…
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Statewide WV | West Virginia

The Complicated Mineral Rights Issue (Mess?) in WV
March 24, 2014March 24, 2014

Mineral rights in West Virginia are complex, to say the least. One might even call it “a mess.” It’s good for lawyers, not so good for the rest of us. MDN has pointed out many times before that depending on where you are in WV, there’s a pretty good chance the surface rights and the below-ground mineral rights were separated long ago. Statewide there are 352,247 owners of mineral rights that have been separated from surface rights. In the southern part of the state coal companies have owned the mineral rights going back years. Further up the state, like the northern panhandle area where there’s a lot of Marcellus and Utica Shale drilling, it’s a mixed bag. Surface rights owners justifiably feel put out because they often, by law, have to give up some of their surface land for a drill pad or roadway–with very little (if any) compensation.

It gets more complicated. Mineral rights can be split among family members or multiple companies going on for generations. A person (or company) may end up owning 1/100th of a share in the rights. Every mineral rights owner is liable to the tax man in WV, and if you don’t pay taxes on it–you can lose the rights at a tax sale. Some may lose rights they never knew they had! Add to that a relatively new wrinkle: nowadays mineral rights can apply to a particular layer of minerals (like the Marcellus). Oy vey! It’s enough to induce a migraine…
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Industrywide Issues | Marshall County | Roads | Statewide WV | Taxation | West Virginia

WV Roads in Need of Repair – Fracking to Blame?
March 24, 2014March 24, 2014

There are a number of roadways in Marshall County and other WV counties with active Marcellus and Utica drilling in need of repair. There is no doubt frequent truck traffic related to the drilling industry is partially at fault. However, truck traffic coupled with a brutally cold winter, seems to have made it worse. Not that roads in many WV communities were pristine to begin with! Just ask any driller operating in WV–the roads in WV suck. There’s just no nice way of saying it. They were not good before drilling, so drilling is not totally to blame.

Still, drilling truck traffic has made it worse. So the industry should pay for repairs, right? Well…they already do. It’s called a 5% severance tax paid by drillers on everything they produce. The drillers are certainly paying it. If the state is not sharing that money with local counties for much-needed road repairs–that’s not the drillers’ fault…
Read More “WV Roads in Need of Repair – Fracking to Blame?”