West Virginia

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

    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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    Noble Energy Donates $250K to WV Community College Program

    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):
    Read More “Noble Energy Donates $250K to WV Community College Program”

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    Antero to Provide 50% Ethane Needed at Parkersburg Cracker Plant

    halfway thereThe 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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    WV Marcellus to Manufacturing (M2M) Talks Crackers, Jobs & More

    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:
    Read More “WV Marcellus to Manufacturing (M2M) Talks Crackers, Jobs & More”

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

    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”

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    Report: Coming Economic Miracle in WV from Ethane Cracker Plant

    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…
    Read More “Report: Coming Economic Miracle in WV from Ethane Cracker Plant”

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    The Complicated Mineral Rights Issue (Mess?) in WV

    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…
    Read More “The Complicated Mineral Rights Issue (Mess?) in WV”

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    WV Roads in Need of Repair – Fracking to Blame?

    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…
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    Back to the Future (Fund) – WV Gov. Tomblin Signs New Law

    Last year a bunch of West Virginia lawmakers went on a quick vacation to North Dakota (of all places), at a cost of $25,000 to WV taxpayers, to try and convince those lawmakers to look at and adopt a “future fund” similar to ND’s “legacy fund” (see 18 WV Lawmakers Flying to ND for a $20K Overnighter on Drill Tax). The Future Fund bill, which would set aside 3% of revenue raised from WV’s oil and gas severance tax in a rainy day fund, came up for a vote a few weeks ago. It passed, but not the way hoped for (see Fate of 3 WV Laws that Impact Marcellus/Utica Drilling). The final bill was altered so that only if certain economic conditions are met would the 3% be set aside.

    However, that makes no difference when it comes to photo ops. Yesterday WV Gov. Earl Ray Tomblin signed the bill into law and the headlines today all ready that WV now has a Future Fund and the state’s politicians are almost breaking their arms patting themselves on the back–even though it’s doubtful that money will be set aside for years to come…
    Read More “Back to the Future (Fund) – WV Gov. Tomblin Signs New Law”

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    Odebrecht’s WV Ethane Cracker has The Big Mo–Momentum

    the big moThe Shell ethane cracker plant announced for Beaver County, PA has been a roller coaster ride about whether or not it will ever get built over the past two years since it was announced. Just last week the pendulum swung again and the mood turned decidedly gloomy (see Shell’s Shale Pessimism Signals Worry for Some re PA Cracker). In stark contrast to the Shell cracker, the cracker announced late last year by Odebrecht–to be built in Parkersburg, WV–seems to have an air of optimism and inevitability (see WV Ethane Cracker – Cautious Optimism in the Mountain State). Odebrecht officials are careful to say it’s not a 100% done deal yet and that we are “very early” in the process of making this multi-billion dollar project a reality. But what MDN notices about the Odebrecht cracker is forward momentum. Rapid progress. Enthusiasm. It just “feels” like the Odebrecht project is going to happen.

    Here is an update on the progress made to date on Odebrecht’s planned ethane cracker complex in Parkersburg, and what will happen next…
    Read More “Odebrecht’s WV Ethane Cracker has The Big Mo–Momentum”

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    WV Drill Cuttings in Landfill Bill Passes in Record Time

    Last Thursday MDN told you legislation to codify into law a current directive by the state’s Dept. of Environment Protection to allow higher volumes of drill cuttings in WV landfills may get a second chance (see WV Drilling Cuttings in Landfill Bill May Get 2nd Life, If…). It already passed! On Friday during a special session of the legislature called by Gov. Earl Ray Tomblin, House Bill (HB) 4411 was one of ten pieces of legislation listed by the governor for consideration. The bill was voted on and passed (full copy of the bill embedded below). HB 4411 passed in record time after being dropped for consideration during the regular session. It is a certainty that Gov. Earl Ray Tomblin will sign it since he wanted it on the docket in the first place.

    Most media stories, stoked by anti-drillers, focus on the “limitless” aspect of the directive-now-passed-law. That is, the law lifts arbitrary small caps on the amount of drill cuttings (leftover rock and dirt from drilling) that can be hauled to a landfill. Those stories would have you imagine this new law means that any municipal landfill can willy nilly now accept mountains of “radioactive” dirt–and that consequently West Virginia will become a radioactive hot zone. Zombies everywhere. Yes, limits are lifted under this bill. But, at the same time, the law stipulates that if a landfill accepts larger amounts of cuttings (over the previous lower cap), it must build a special, separate cell where the cuttings will be stored. The landfill must also monitor leachate from the cell to ensure nothing nasty leaks out. And the landfill must install radiation detectors to monitor truckloads of cuttings coming into the landfill. In other words, this is a good bill that not only gives drillers a safe place to dispose of drill cuttings–it protects WV citizens. But you wouldn’t know that from reading most stories…
    Read More “WV Drill Cuttings in Landfill Bill Passes in Record Time”

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    Magnum Hunter Marcellus/Utica Update: 8 New Wells Coming Online

    It’s often hard to get heard in our 24/7 news-saturated culture. How do you get folks to focus on your good news? Issue a press release, of course. While these bits of self-promotion are often eschewed and overlooked by the mainstream press, MDN delights in bringing them to you because they often contain a lot of really good information. To wit: on Friday Magnum Hunter Resources issued an update (i.e., press release) updating the world on their good news in the Marcellus and Utica Shale region. MH says they will bring 8 new wells online within the next 30 days in West Virginia–and those wells will flow gas through MH’s very own pipeline system in the area. It’s nice to not only own the wells but the pipeline system too.

    Here is the MH update with lots of details on lateral lengths, locations, robotic drilling rigs and more…
    Read More “Magnum Hunter Marcellus/Utica Update: 8 New Wells Coming Online”

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    Gastar Update: First Utica Well Coming in April, Marcellus Grows

    Gastar Exploration released their fourth quarter and full year 2013 report yesterday. Gastar drills in both the northeast (Marcellus) and the Mid-Continent shale play areas in the U.S. What do we learn about Gastar’s recent history and plans going forward in our neck of the woods? First, the update says that Gastar plans to drill their very first Utica Shale well in April. Gastar says they believe there is drillable Utica acreage under their leased land in Wetzel and Marshall counties in West Virginia–and they plan to take full advantage of it starting this year.

    We also learn that the company’s Marcellus Shale production increased by 37% year over year. In Q412 Gastar produced 29.9 million cubic feet per day of natural gas, and in Q413 it was 41.0 MMcf/d. Which is tiny when compared to the 1 Bcf/d being produced by several Marcellus producers. But still, the numbers are going in the right direction. Here’s a small portion of yesterday’s update that deals with the Utica and Marcellus…
    Read More “Gastar Update: First Utica Well Coming in April, Marcellus Grows”

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    Hocus Pocus Drilling Impacts Health Survey in Wheeling, WV

    We spotted a mention that the Wheeling-Ohio County (WV) Health Department has launched a so-called health survey to measure the impacts of Marcellus Shale drilling on area residents. So we took a peek–and we were unimpressed. Survey respondents are asked to self-report (no verification) how they “feel” about their current aches and pains–essentially the common ailments everyone faces no matter where they live. Then they’re asked precisely two questions (that we can determine) that *may* be related to gas drilling: “Have you noticed any changes in road conditions in your region since 2010?” and “Do you work in the gas industry?”

    We’re guessing this is the kind of survey where they try to assign blame for headaches, etc. on gas drilling based on your address or occupation. If the people living (or working) within 5 miles of drill site have a statistical 2% increase in headaches, voilà–it was gas drilling that caused it. Which of course is not science at. It’s statistical hocus pocus that proves nothing. It’s all self-reported for goodness sake! How long will this “survey” be live? Oh, a few years, until they can “prove” drilling is causing problems…
    Read More “Hocus Pocus Drilling Impacts Health Survey in Wheeling, WV”

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    WV Drilling Cuttings in Landfill Bill May Get 2nd Life, If…

    Two days ago MDN told you about the West Virginia legislature’s failure to act on House Bill 4411 that would codify into law the current directive from the Secretary of the Dept. of Environmental Protection that provides guidelines on accepting drill cuttings at landfills (see WV Legislature Fumbles the Ball on Landfill Bill, Does Nothing). It’s possible that the bill will get a second chance at legal life–if Gov. Earl Ray Tomblin calls for a special session and if the bill is on his list to consider. In WV the legislature meets for 60 calendar days at the beginning of they year, each year. They need to get their work done during those two months. After that, the Governor can call them back, but they can only take up those bills specified by the Gov.

    Here’s more detail of what went on “behind the scenes” as WV legislature grappled with HB4411 during the closing days of the regular session:
    Read More “WV Drilling Cuttings in Landfill Bill May Get 2nd Life, If…”

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    NTSB Faults NiSource/Columbia for WV Pipeline Explosion in 2012

    accident waiting to happenOn December 11, 2012, a portion of the Columbia Gas Transmission pipeline (owned by Nisource) exploded near Sissonville, WV, 10 miles north of Charleston. The resulting fire burned for more than an hour and shut down a portion of nearby Interstate 77 for days (see Columbia NatGas Pipeline Explodes Near Charleston, WV). It’s been a long time coming, but on Monday the National Transportation Safety Board (NTSB), that did a full investigation of the explosion, turned in their final report. It was pretty damning for NiSource/Columbia. The conclusions of the investigators are that a) the pipe had corroded in that section–a long time ago, and b) Columbia hadn’t inspected that section of pipeline since (unbelievably) 1988. In other words, it was an accident waiting to happen.

    Below we have the press release from the NTSB with their high level findings, then the full 32-page report released Monday, and finally, the lame response issued by NiSource/Columbia “thanking” the NTSB for just ripping them a new one…
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