West Virginia

Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY | Statewide WV | West Virginia

Compare & Contrast 2 Eastern Democrat Governors on Shale Drilling
January 9, 2014January 9, 2014

Let’s compare and contrast “state of the state” addresses delivered yesterday by two Democrat governors in the eastern United States. Governor A has a thriving, business-friendly state that welcomes not only service businesses but specializes in ensuring heavy industry businesses are welcome and investing in his state. In fact, Governor A, who is not only business-friendly but also environment-friendly, works tirelessly to expand job opportunities for his residents, including shale jobs. He’s probably the only Democrat MDN would vote for! And that’s saying something.

Governor B, on the other hand, generally sits on his rear-end, goes to expensive fundraisers deluding himself that he has a chance at the presidency, has the highest unemployment in the eastern U.S., is driving thousands of businesses (and business owners) out of his state each month while mouthing platitudes about being business-friendly, and frankly is a do-nothing governor. Can you guess which is which?…
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Industrywide Issues | Marshall County | Property Value | West Virginia

Shale Drilling Leads to Higher Property Values in WV
January 9, 2014January 9, 2014

One of the old, trite, and untrue arguments trotted out by anti-drillers is that when drilling comes to town, property values decrease. It shouldn’t surprise you, if you read MDN, to learn that the exact opposite is true. The latest evidence of that comes to us from one of the most horizontally drilled/fracked counties in West Virginia: Marshall County.

Officials in Marshall County report that because of all the drilling in the county, property values in the county have risen by an average 10%. Put another way, if you were to sell your house today, you’ll get 10% more than you would have gotten just a few years ago. The only “problem” is that some peoples’ property tax bills will go up because of it…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Eureka Hunter Boasts 360% Yearly Increase in Marcellus/Utica Flow
January 8, 2014January 8, 2014

Eureka Hunter, the wholly-owned midstream (pipeline) subsidiary of driller Magnum Hunter, published their month by month flow numbers yesterday for how much gas they pumped through their pipelines in West Virginia and Ohio during 2013. It was an impressive year for Eureka Hunter. The average daily flow or “throughput” in 2012 was 23,291 million Btus (or MMBtus), which equates to 23.3 million cubic feet per day (or MMcf/d). If the “average” well is producing, say, 3 MMcf/d, that’s the equivalent of having 8 wells connected to the pipeline. The average daily flow in 2013 was 83,828 MMBtus, or 83.4 MMcf/d, or 28 wells hooked up and flowing. That’s a 360% year over year increase–nearly quadruple the volume!

What the average doesn’t tell you, however, is that by the end of the year, Eureka Hunter’s pipeline flowed nearly 160,000 MMBtus, or 160 MMcf/d, which is production from an average 53 wells. They predict in 2014 the daily flow rate will hit 206,500 MMBtus. Somewhere between 40-50% of the gas they flow is from Triad Hunter, another Magnum Hunter subsidiary (sister company to Eureka Hunter). Below is the press release with Eureka Hunter’s monthly flow numbers. With our explanation above, you now know how to view it!…
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Hydraulic Fracturing | Industrywide Issues | Research | Soil | Statewide WV | Wastewater | West Virginia

WVU Prof Stokes Radioactive Fears, Says DEP Study Missing Research
January 7, 2014January 7, 2014

Here’s a story that we confess, we’re having a tough time wrapping our brains around. Allegations are swirling in West Virginia that one of three officially conducted studies for the state’s Dept. of Environmental Protection (DEP) released last year overlooked important data collection. The study in question was completed in December 2011 and released in February 2012. Titled “Pits and Impoundments Final Report,” the report looks at frack wastewater impoundments and water pits used in horizontal Marcellus Shale drilling (see WVU Study Finds Potential Problems with Frack Wastewater Pits for a copy of the full study). From what we can determine, solid waste, like drilling mud and “cuttings” (leftover rock and soil from drilling) were not part of that study–at all.

But now, the Charleston Gazette identifies and quotes a WVU professor who supposedly worked on that study (although his name doesn’t appear in the study) who says researchers tried to test drill cuttings for radioactivity and were either denied access or put off/delayed until they finally ran out of time and had to file the report without doing the analysis. It’s now a big deal because anti-drillers are raising the specter that everyone is about to glow in the dark from radioactive drill cuttings going to landfills across the state. The WVU prof seems to be intentionally stoking those fears…
Read More “WVU Prof Stokes Radioactive Fears, Says DEP Study Missing Research”
Energy Services | GreenHunter Resources | Industrywide Issues | Marshall County | Ohio County | Wastewater | West Virginia

Check-in on GreenHunter’s Wheeling Frack Wastewater Plant
December 27, 2013December 27, 2013

Spandex outfits on. Check. Capes flapping in the breeze. Check. Homemade protest signs created. Check. The so-called Wheeling Water Warriors are ready for more protests against the eeeve-ill, nasty frack wastewater company–GreenHunter. Yes saracasm. Yes we believe the “Water Warriors” are nothing more than fossil-fuel haters stoked by irrational fears that carbon (the very substance they’re made from) is actually a pollutant and that burning it will mean the end of our existence. Boggles the mind. But there you go.

It’s time to check in for an update on GreenHunter’s project to build a frack wastewater recycling facility in Wheeling, WV, and on GreenHunter’s future plans to ship frack wastewater via barge down the Ohio River when the Coast Guard gets around to issuing the “go ahead” signal. It’s also time to check in on the half dozen or so people who continue to grab headlines using the misleading name Wheeling Water Warriors…
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Industrywide Issues | Landfills | Statewide WV | West Virginia

WV Anti-Drillers Continue to Harp on Drill Cuttings in Landfills
December 27, 2013December 27, 2013

Anti-drillers in West Virginia continue to beat the drums about drill cuttings (leftover rock, dirt and mud from shale drilling) being disposed of in landfills. The claim they make is that the state “quietly” carved out a “loophole” earlier this year that allows untold mountains of radioactive dirt to be dumped willy-nilly in the nearest landfill and as a result we’ll all be glowing in the dark any day now. Of course it’s bupkis, but it makes for great headlines.

Here’s the latest “keep the radioactive dirt issue alive” story from the AP, from a few weeks ago:
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Accidents | Chesapeake Energy | Energy Companies | Industrywide Issues | Regulation | Statewide WV | West Virginia

EPA Makes Chesapeake Pay $9.7M for Spilling Dirt in Creeks & Swamps
December 20, 2013December 20, 2013

The federal Environmental Protection Agency (EPA) announced yesterday that they’ve slapped Chesapeake Energy with a $3.2 million fine, and a requirement that Chessy spend another $6.5 million to clean up 27 sites in West Virginia that the EPA says were “damaged by unauthorized discharges of fill material into streams and wetlands.” That is, Chessy got sloppy and dumped some dirt in a few creeks and swamps (the horror!). The EPA used the federal Clean Water Act to extract their multiple pounds of flesh out of Chesapeake. The EPA is all proud of themselves that this is “one of the largest” fines ever levied by the EPA using the CWA.

Here’s the announcement direct from the belly of the rogue beast itself:
Read More “EPA Makes Chesapeake Pay $9.7M for Spilling Dirt in Creeks & Swamps”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Ohio | Statewide OH | Statewide WV | Triad Hunter | West Virginia

Magnum Hunter Production #s for Recent Wells Drilled in OH & WV
December 20, 2013December 20, 2013

This morning Magnum Hunter issued an operational update for wells recently drilled in both the Marcellus and Utica Shale–in Ohio and West Virginia. In addition to production stats for the new wells (see below), MH reports they continue to snap up acreage in both the Marcellus and Utica. They now own 89,000 acres in the Marcellus and 105,000 acres in the Utica. Some of that acreage overlaps and they plan to drill both Marcellus and Utica wells on the same pad in some cases.

Here’s the update, including well results from wells drilled in Monroe and Washington counties in OH, and Tyler County in WV:
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Berkeley County | Industrywide Issues | Landfills | Statewide WV | West Virginia

WV Residents Express Concerns over Drill Cuttings in Landfills
December 13, 2013

Drill cuttings (leftover rock and dirt from drilling wells) sometimes contains low levels of naturally occurring radiation–that’s a fact. The typical way of disposing drill cuttings is via landfill. Loads are tested for radiation to be sure it doesn’t exceed safe limits, but any time you use the “r” word folks understandably get a little bit antsy. Visions of nuclear waste dumps run through their heads. Recently a rash of media-manufactured stories have appeared that West Virginia has a “loophole” that allows dumping of “radioactive shale waste” in local landfills. That’s not happening, and as stated, when/if there’s radioactivity in the cuttings, it’s usually so low it’s below that of medical waste that goes to the landfill.

But the media has now done it’s job and people are in a dither about this issue. So it’s no surprise that in an area of WV where there is no shale drilling–the eastern panhandle–folks turned out in large numbers to express concern over drilling in general and landfilling of cuttings in particular that may (or may not) be happening in their area…
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Air Quality | Industrywide Issues | Ohio County | Research | West Virginia

WV County Health Dept Investigates Wells for Air Pollution
December 13, 2013December 13, 2013

Is Marcellus Shale drilling in West Virginia causing elevated levels of cancer-causing benzene (and other pollutants) to spread near well sites? That’s the question being investigated by the Wheeling-Ohio County Health Department. They’ve been sampling air around wells in Ohio County and have concerns, particularly about benzene levels. They’ve sent their findings to Michael McCawley, chairman of the Department of Occupational & Environmental Health Sciences in the School of Public Health at West Virginia University. McCawley, you may remember, has been beating the drum for some time that setbacks for drilling in WV are not enough and that air pollution coming from drilling operations is a serious issue (see WVU Prof Keeps Up Pressure on Improved Air Quality at Drill Sites).

The source of the benzene is not from what’s coming out of the borehole–it’s from heavy equipment running at the drill site and trucks coming and going to the site. Benzene is found in diesel fuel and a lot of equipment at a drill sites runs on diesel…
Read More “WV County Health Dept Investigates Wells for Air Pollution”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Ritchie County | Tyler County | Utica Shale | Washington County (OH) | West Virginia

Magnum Hunter 2014 CapEx: Utica/Marcellus
December 13, 2013December 13, 2013

In our season of 2014 guidance statements, Magnum Hunter Resources has just issued theirs. And what do we find when we open this particular Christmas present? The company will spend $400 million on capital expenditure projects in 2014, and the vast majority of it will go to the Utica and Marcellus Shale. Magnum Hunter plans to lease more acreage in the Marcellus/Utica, increase drilling rigs from two to three, and build out more pipelines in the northeast too. The Ohio Utica is a particular focus for Magnum Hunter in 2014.

Here is their 2014 blueprint, including which counties in OH and WV will see drilling action from Magnum Hunter in 2014:
Read More “Magnum Hunter 2014 CapEx: Utica/Marcellus”
Energy Companies | Ohio | PDC Energy | Statewide OH | Statewide WV | Taylor County | Utica Shale | West Virginia

PDC Energy to End Marcellus Drilling in 2014, Continue in Utica
December 11, 2013December 11, 2013

It’s the “Get out an update on what we plan to do in 2014” time of year. Doesn’t exactly roll off the tongue like “It’s the most wonderful time of the year!” End of year is not only about holidays but also about telling investors what they can expect next year–how a company plans to make money and provide a good return. Even though these statements are sometimes routine and dry, often you find interesting details when you pick through them. Like yesterday’s 2014 guidance statement from PDC Energy, a driller in both the Marcellus and Utica Shale.

In a low-key but to us surprising announcement, PDC’s statement says they will suspend drilling in the Marcellus in 2014. They plan to finish drilling four wells already under way in Taylor County, WV and then not drill any more Marcellus wells, but instead concentrate their time and effort on the Utica Shale and on Colorado’s Wattenberg Field. For those interested in Marcellus and Utica drilling, reading these updates is anything but dry! Take time to look over PDC’s plans for 2014, particularly their plans for the Utica…
Read More “PDC Energy to End Marcellus Drilling in 2014, Continue in Utica”
Lease & Royalty Payments | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Clear Fork Royalty Now Buying Royalty Rights in PA & WV
December 11, 2013December 11, 2013

There are companies that will purchase landowners’ royalty payments–giving them a lump sum payment in return for signing over all future royalty payments to the company (or individual) buying them. It’s not unlike companies that approach and pay lottery winners who receive payouts over a long period (for life, or for a period of years), the winners selling their future payments for a single lump sum now. Of course by selling future royalty payments for money now, the landowner will typically accept far less than they otherwise would have received by continuing to get the royalty checks over time. But there are certain circumstances (terminal illness, for example) when the landowner would rather have as much of their money as they can get–right now. And so royalty-purchasing companies exist to oblige.

One of those companies is Texas-based Clear Fork Royalty, who (by press release) has announced they’ve now hung their shingle in the Marcellus/Utica region–in PA and WV. If you’re a royalty owner, Clear Fork may come knocking on your door…
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Hydraulic Fracturing | Industrywide Issues | Marion County | West Virginia

WV Well Pad Liner Company Gets Shot of Investment Money to Grow
December 11, 2013December 11, 2013

Extreme Plastics Plus (EPP) has been manufacturing and installing well pad liners since 2007. Pad liners protect the ground from accidental spills of frack wastewater and chemicals used during the drilling process. Located in Fairmont, WV, EPP’s customers are in the Marcellus and Utica Shale region. In order to expand, EPP has just accepted an undisclosed amount of investment money from Hastings Equity Partners. According to EPP CEO Bennie Wharry, the money, and Hastings’ expertise, will help EPP grow “to the next level.”

The Hastings/EPP announcement:
Read More “WV Well Pad Liner Company Gets Shot of Investment Money to Grow”
CONSOL Energy | Dominion Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Statewide WV | West Virginia

CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too
December 10, 2013December 10, 2013

MDN brought you today’s CONSOL press announcement that they have closed a deal with Dominion Resources to take over 90,000 acres of Marcellus and Upper Devonian Shale leases for $190 million (see separate story today). Not mentioned in the CONSOL announcement is the deal also includes CONSOL using Dominion to pipeline their West Virginia production to market. Dominion reports in addition to the deal with CONSOL they’ve signed agreements with several other companies too, and will deliver WV production to pipelines in Ohio.

Here’s the “complimentary/competing” press announcement issued today from Dominion. Their side of the story, if you will…
Read More “CONSOL/Dominion Acreage Deal Includes Pipeline Contract Too”
Barbour County | CONSOL Energy | Energy Companies | Lease & Royalty Payments | Pennsylvania | Statewide WV | Washington County | West Virginia

CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report
December 10, 2013December 10, 2013

CONSOL Energy issued a press release today updating their Marcellus Shale well results from wells drilled in Washington County, PA. In addition to PA, CONSOL owns leases for and is actively drilling in the West Virginia Marcellus area–most of it in the “wet gas” (natural gas liquids) area of the Marcellus. The update says they just completed their first pad in Barbour County, WV, a pad with six wells on it.

The big news in today’s announcement: CONSOL has just purchased another 90,000 acres of leases in WV–from Dominion Resources–for $190 million ($2,111 per acre). The deal will allow CONSOL to not only drill in the Marcellus layer, but also the Upper Devonian shale layer as well. CONSOL is one of the few drillers (so far) targeting the Upper Denonian (see MDN’s Upper Devonian category for stories about who else is targeting that layer)…
Read More “CONSOL Buys 90K WV Marcellus/Upper Devonian Acres, Well Report”