West Virginia

Forced Pooling | Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | Taxation | West Virginia

Fate of 3 WV Laws that Impact Marcellus/Utica Drilling
March 10, 2014March 10, 2014

Each year the West Virginia legislature meets for 60 days to consider new legislation. Some bills make it to a floor vote, most do not. There are three bills of major concern to Marcellus and Utica Shale drillers before WV legislators during this session, which just wrapped up last week: chemical tank regulation; WV Future Fund; and forced pooling. One of the three passed and will almost certainly be signed into law by WV Gov. Earl Ray Tomblin. Another passed with major modifications, rendering it unrecognizable from the original. The third, to our knowledge, never made it to the floor for a vote and died in committee.

Which was which?…
Read More “Fate of 3 WV Laws that Impact Marcellus/Utica Drilling”
Access Midstream Partners | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants
March 5, 2014March 5, 2014

Chesapeake Energy continues to sell off bits and pieces of the company, making corporate raider (and the company’s second largest investor) Carl Icahn happy. The latest ballast to go over the side are 103 “compression units” in the Marcellus/Utica region, purchased by Access Midstream (which used to be Chesapeake Midstream before it was tossed over the side too), and 334 “compression units” scattered throughout the south, southwest and west, sold to Exterran Partners. Total proceeds for Carl Icahn, er Chesapeake? $520 million.

Here’s the announcement from Chesapeake, followed by the announcement from Access Midstream about their “bolt-on” acquisition…
Read More “Chesapeake Fire Sale Continues: Marcellus/Utica Compressor Plants”
Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

Will WV Lawmakers Have Guts to Tackle Cuttings in Landfills Bill?
March 3, 2014March 3, 2014

Two weeks ago MDN told you about a House Bill (HB) 4411, actively under consideration by the West Virginia state legislature, that would codify into law the right for landfills in the state to accept Marcellus and Utica Shale drill cuttings (see WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition). At the time a parade of speakers spoke against the bill with one speaker (from the Independent Oil and Gas Association of West Virginia) speaking in favor. The bill would codify into law the right for landfills to accept larger amounts of cuttings, which anti-drillers object to because it encourages more drilling.

What we didn’t know at the time is why the WV Dept. of Environmental Protection is supporting the bill: because it will codify into law the protections they drafted as a temporary measure (now in place). Yes, protections, like separating the cuttings into their own cell within a landfill, the use of special liners, and lechate monitoring. The DEP is keeping a close eye on this issue and believes the proper place to have the debate about it, along with a resolution to the debate, is in the state legislature–if they have the intestinal fortitude to address it…
Read More “Will WV Lawmakers Have Guts to Tackle Cuttings in Landfills Bill?”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Ethane Cracker – Cautious Optimism in the Mountain State
March 3, 2014March 3, 2014

The editors at the Charleston Gazette have penned an editorial about their “cautious hope” that the ethane cracker plant announced by Odebrecht for Parkersburg, WV will become a reality. As they note, coal is descending in the state, and natural gas is ascending. If the cracker plant is built–complete with environmental safeguards–it will be a huge economic bonanza for the state. Although the editors are a tad skeptical about the “drill drill drill” attitude from Gov. Earl Ray Tomblin and his administration (a Democrat, which is noteworthy), they’re willing to suspend the usual knee-jerk reaction against such projects and allow hope to bloom on the editorial page. A good sign!

From the Gazette:
Read More “WV Ethane Cracker – Cautious Optimism in the Mountain State”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Wastewater | West Virginia

What’s the Holdup at GreenHunter Wheeling Frack Wastewater Plant?
February 28, 2014February 28, 2014

After hitting a few rough patches with Wheeling, WV Planning Commission, GreenHunter Water finally received a green light to proceed with a frack wastewater recycling facility in Wheeling, along the shore of the Ohio River. Even though one Planning Commission member, Gloria Delbrugge, keeps a firmly closed mind about the facility (see Wheeling Councilwoman Will Shun GreenHunter Ribbon Cutting). Anti-drillers often have closed minds. All seemed fine with the Commission’s approval in hand and GreenHunter was on track to open the facility by the end of last year. But it still hasn’t happened. Why?

The main reason is that they’re still waiting on permission from the Coast Guard to move frack waste water by barge down the Ohio to points where GreenHunter owns some injection wells where they plan to dispose of some of the wastewater (see Coast Guard Wants Frack Wastewater Barges Tested – Every Load). There’s also the matter of receiving permits for trucks entering and exiting the facility (see GreenHunter’s Wheeling Frack Wastewater Facility Hits a Snag). And they’ll permits for the barges when/if the Coast Guard finally approves the barging plan. Oy vey! Regardless, GreenHunter remains laser focused on the Marcellus/Utica and is committed to bringing this (and other) facilities online. Here’s an update:
Read More “What’s the Holdup at GreenHunter Wheeling Frack Wastewater Plant?”
Chesapeake Energy | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Utica Shale | West Virginia

Chesapeake 2013 & Beyond: Lack of Pipelines Still a Big Problem
February 27, 2014February 27, 2014

Yesterday Chesapeake Energy issued their fourth quarter and full year 2013 operational and financial results. Chessy’s CEO, Doug “the ax” Lawler is all proud of himself for having fired over 1,200 employees, saving the company all that money (money that goes into Carl Icahn’s bank account). Whatever. For all of our disgust with what Chesapeake has become because of Icahn and his corporate raiding practices, it’s still a very important driller in the Marcellus and Utica (as well as other plays), and will continue to be so. When they issue an update, we need to pay attention, because as Chessy goes, so goes the Marcellus and Utica, in some senses.

What does yesterday’s update show? Chessy has drilled a lot of wells in the Utica–425 so far, more than half of the 747 Utica wells drilled to date in Ohio. Of those 425, 230 are online and producing, but a huge 195 wells are still waiting to be hooked up to pipelines. Lack of infrastructure is still a big issue in the Utica and in the Marcellus. In the northern Marcellus area (northeast PA) Chesapeake has 112 wells waiting to be connected to pipelines. They’ve scaled back their drilling in NEPA somewhat over the past year. In the southern Marcellus (SWPA and WV) Chesapeake has 47 wells waiting to be connected to pipelines or otherwise completed. Here’s the operations update for both the Utica and Marcellus from Chessy’s announcement yesterday:
Read More “Chesapeake 2013 & Beyond: Lack of Pipelines Still a Big Problem”
Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Research | Statewide WV | West Virginia | Wood County

Economist Releases Report on WV Cracker Plant’s Economic Impact
February 26, 2014February 26, 2014

West Virginia’s coming ethane cracker plant continues to generate positive economic news. Yesterday the former director of West Virginia University’s Bureau of Business and Economic Research and professor emeritus at WVU, Tom Witt, released a study he conducted on behalf of Braskem America (i.e. Odebrecht, the company building the cracker). The new study details specifics for how many jobs and how much money the proposed cracker and associated petrochemical plants will generate. And it’s truly astonishing.

Here’s an overview of the economic miracle about to hit WV (and beyond)…
Read More “Economist Releases Report on WV Cracker Plant’s Economic Impact”
CONSOL Energy | Energy Companies | Ethane | Exporting | Industrywide Issues | Pipelines | Statewide WV | West Virginia

CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends
February 24, 2014February 24, 2014

CONSOL Energy’s CEO Brett Harvey must be getting some heat over the company’s recent announcement that they have signed an agreement to export ethane from the Marcellus to Europe (see CONSOL to Begin Ethane Shipments Next Year–to Europe?!). Why would we say CONSOL is getting blowback? Because Harvey penned an op-ed that appears in The Intelligencer/Wheeling News-Register giving a spirited defense of their decision. The gist of Harvey’s points, if we might summarize, is this: CONSOL has deep roots and is committed to WV; there’s plenty of ethane to go around, including for exports (and exports bring money into WV); CONSOL is also going to sell ethane to the Odebrecht ethane cracker when/if it gets built; in the meantime, selling ethane to Europe means CONSOL will have more money to invest in WV.

Here’s Harvey’s “it’s OK” op-ed:
Read More “CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill Dies in Committee, Yet Again
February 21, 2014February 21, 2014

As MDN alerted you, the West Virginia House of Delegates took up HB 4558, a forced pooling/unitization bill for the third or fourth year running (see WV Legislature Makes Another Run at Forced Pooling/Unitization). Yesterday we alerted you that it appeared the bill may be in trouble (see WV Forced Pooling Bill Already in Trouble, Passage Doubtful).

Today we’re happy to report the bill is dead for another year…
Read More “WV Forced Pooling Bill Dies in Committee, Yet Again”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill Already in Trouble, Passage Doubtful
February 20, 2014February 20, 2014

Yesterday MDN told you about the new initiative in the West Virginia legislature to revive (yet again) a forced pooling bill (see WV Legislature Makes Another Run at Forced Pooling/Unitization). A few more details on that initiative have (as we suspected) appeared in WV media outlets. Not only was House Bill (or HB) 4558 introduced, but a companion bill Senate Bill (SB) 578 was also introduced. Already one of the senators sponsoring the Senate bill has asked his name to be removed and is backing away from it, saying the measure “will not pass.”

Even Corky Demarco, executive director of the West Virginia Oil and Natural Gas Association, says he’s “not sure” of the outcome for the legislation. All of which means it sure looks to us like it’s (once again, thankfully) DOA for this session. However, we’ll continue to keep an eye on it. Here’s the latest…
Read More “WV Forced Pooling Bill Already in Trouble, Passage Doubtful”
Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia

WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition
February 20, 2014February 20, 2014

MDN told you in stories both yesterday and today about WV House Bill (HB) 4558 that would allow forced pooling in the state–a bill that seems headed for defeat. However, there is a second House Bill actively under consideration related to the Marcellus/Utica drilling industry in the state. HB 4411 would establish in law that WV municipal landfills can legally accept over the current legal monthly maximum limit of drill cuttings for disposal (full copy of the bill is embedded below). Last year the WV DEP issued a directive that allows landfills to accept drill cuttings over the maximum 10,000 tons, something that some landfills have done since that time (in some cases landfills are accepting up to 40 tons per month). Apparently HB 4411 will codify the DEP directive into law, meaning future administrations can’t arbitrarily decide to rescind the more generous directive in place now.

A House hearing was held yesterday on HB 4411. Of the 20 speakers who addressed the House panel, 19 of them spoke against the law. The sole supporter was Charlie Burd, executive director of the Independent Oil and Gas Association of West Virginia. Here’s more of the story on disposing of drill cuttings (leftover rock and dirt) in municipal landfills…
Read More “WV Bill to Allow More Drill Cuttings in Landfills Faces Opposition”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Lewis County | Regulation | Statewide WV | West Virginia

The Twisted Logic of an Anti-Driller: Blame Natgas for Everything
February 20, 2014February 20, 2014

If you try to enter the mind of a devoted anti-driller to understand their viewpoint and how they think, you risk going insane. We caution against it.

Here’s an example of how “logic” works for anti-drillers. There’s a big chemical spill that affects the drinking water for 300,000 West Virginians–caused by the coal mining industry. You no doubt remember the headlines from a month or so ago. Since the coal industry caused the problem, we need new legislation that targets the shale drilling industry. Wait, what??? Yeah, that’s how logic works for an anti-driller…
Read More “The Twisted Logic of an Anti-Driller: Blame Natgas for Everything”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Legislature Makes Another Run at Forced Pooling/Unitization
February 19, 2014February 19, 2014

Breaking news: The West Virginia Legislature is once again taking up the issue of forced pooling–or as they are calling it, “unitization”. The forced pooling bill was introduced once again, as it has been for several years running, just a few days ago. Each year the WV legislature meets for a 60-day session and that’s it. So work has to get done quickly. An alert MDN reader tipped us that later today the House of Delegates Energy Committee will consider H.B. 4558 (full copy of the bill embedded below) at a 3 pm session today. The committee must vote to report the bill out of committee before a vote by the entire House can be taken. Will that happen? Not sure.

According to the West Virginia Natural Gas Blog (written by law firm Lewis Glasser Casey & Rollins), both of WV’s natural gas associations are in favor of the bill. MDN has not had time to read/review the bill and therefore won’t (at this time) render an opinion. But our long-standing view remains unchanged–we take a dim view of forced pooling period. Unitization–the right to re-sell already-leased land, or to include small bits of land where the owner cannot be tracked down after a good-faith effort–is one thing. Coming in and saying 51% of your neighbors have signed, we’ll take yours too if you don’t–that’s a completely different matter and for us, should not be done. We’re sure there will be more press on today’s hearing, which we’ll bring you when we see it…
Read More “WV Legislature Makes Another Run at Forced Pooling/Unitization”
Energy Services | Ethane | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia | Williams

Williams’ Oak Grove, WV Plant (Slowly) Gets New De-Ethanizer
February 17, 2014February 17, 2014

The Oak Grove processing plant in Marshall County, WV is about to get its first de-ethanizer, a huge piece of equipment that strips ethane from “wet gas” so it can be sold, via pipeline. Until recently most ethane in the northeast has been a waste product for drillers–something that’s blended with other hydrocarbons or even burned (flared) to get rid of. However, with two new ethane pipelines up and running–one to Sarnia, Canada (Mariner West) and one to the Gulf Coast (ATEX), ethane is a valuable commodity. And so Williams is adding a de-ethanizer to their still-under-construction Oak Grove processing plant.

The de-ethanizer recently arrived by train at Benwood CSX rail yard along the Ohio River. Now the 123-feet long (and 14 feet wide) piece of equipment will go on a very special “superload” truck and it will take 3 days to go just 30 miles to reach the Oak Grove site. If you live in WV, you might want to reconsider plans to travel along routes WV-88 or US-250 later this week, unless you like moving along at 5 miles per hour…
Read More “Williams’ Oak Grove, WV Plant (Slowly) Gets New De-Ethanizer”
Industrywide Issues | Marshall County | Property Value | West Virginia

When Drilling Comes to Town, Property Values Go…UP, Not Down
February 5, 2014February 5, 2014

When drilling comes to town, property values plummet–right? Wrong. The property value plummeting lie is told so often by anti-drillers that they’ve convinced themselves it’s actually true. So let’s take a look at property values in one of the most shale-drilled counties in West Virginia–Marshall County. Property values in Marshall County for the 2014 tax year have gone UP a total of $158.2 million. Huh. What about last year? In 2013 property values in Marshall County went UP by $605 million! Must be an anomaly. Go back another year. OK–property values in Marshall County in 2012 went UP by $335 million. The reason, according to county officials, is Marcellus Shale drilling.

Contrary to the popular anti-drilling lie, it seems when drilling comes to town, property values actually go UP, not down. We wonder how many other arguments anti-drillers spin where the truth is opposite of their claims? Here’s more on the good news of zooming property values in Marshall County, WV:
Read More “When Drilling Comes to Town, Property Values Go…UP, Not Down”
Economic Impact | Energy Services | Industrywide Issues | MarkWest Energy | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

MarkWest: 7 New NE Plants Online in Past 4 Mos, 17 More Coming!
January 31, 2014January 31, 2014

There are a number of midstream (pipeline and processing plants) companies operating in the Marcellus and Utica region. The country’s largest midstream company, Kinder Morgan, increasingly has a presence in the region. Joint ventures of various kinds, like Blue Racer Midstream (Dominion and Caiman Energy) are important new–and big–players. Williams Partners is one of the biggest. But if we had to identify which midstream company has the most assets, the most presence in the region, we’d have to say it’s MarkWest Energy. Yesterday MarkWest issued an operational update on their Marcellus and Utica projects–and frankly, it’s really impressive. This is a “time to crow about what we’ve done and will do” update. They’ve earned the right.

Over the past four months MarkWest has brought seven new, major projects online: 5 new cryogenic processing plants (separates wet gas into two streams, methane and NGLs), and 2 new fractionation plants (further separates the NGLs into their components, like ethane, butane and propane). Each one of these projects represents hundreds of millions of dollars of investment and hundreds of jobs. Here’s the kicker: MarkWest has another 17 major processing and fractionation projects under construction! Incredible. Below is the update issued yesterday by MarkWest which identifies many of projects and customers. It’s well worth your time to read:
Read More “MarkWest: 7 New NE Plants Online in Past 4 Mos, 17 More Coming!”