West Virginia

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Deadline Approaching for 2013 Northeast Oil & Gas Awards
November 1, 2013November 1, 2013

Calling all energy-related companies in the Marcellus/Utica Shale. The Oil & Gas Awards invite you to submit (or be submitted) for recognition in one of 25 different categories. Marcellus Drilling News is pleased to partner with the Oil & Gas Awards to promote their annual, regional events. Specifically, we’re currently promoting the 2013 Northeast Oil & Gas Awards (entries due by Nov. 29, 2013).

The Oil & Gas Awards announcement, with details on how to enter:
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Access Midstream Partners | Cardinal Gas Services | Economic Impact | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | Utica East Ohio Midstream | West Virginia

Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015
October 31, 2013October 31, 2013

Access Midstream Partners is heavily involved with the pipeline/processing plant infrastructure buildout happening in both the Marcellus and Utica Shale region. Access is the lead company in the joint venture known as Cardinal Gas Services (the other partners being TOTAL and EnerVest), and an important partner in Utica East Ohio Buckeye (along with M3 Midstream and EnerVest). According to Access CEO Mike Stice on an investors call yesterday, his company’s total investment in the Marcellus Shale by the end of 2015 will be $1.8 billion, and the total investment in the Utica will be $2 billion.

A combined $3.8 billion investment in the northeast spanning 2012-2015–from one company. Simply astonishing! Here’s a few highlights from Stice’s talk yesterday…
Read More “Access Midstream Will Invest $3.8B in Marcellus/Utica by End 2015”
Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Statewide WV | West Virginia

WVU & OSU Score $2M from NSF for Shale Energy Research
October 31, 2013October 31, 2013

The Marcellus and Utica Shale is not only good for landowners (big bonuses, lucrative royalties), for drillers (can’t drill fast enough, making boatloads of money), and of course the rest of us (all that money ripples throughout local economies and gets reinvested). The Marcellus/Utica is also good for academic types too. West Virginia University and Ohio State University together have just been awarded an eye-popping $2 million grant by the National Science Foundation (NSF) for shale energy research.

Some of that money will go to a researcher MDN previously highlighted back in 2011–Dr. Shikha Sharma, an assistant professor at WVU. At the time Dr. Sharma delivered what was bad news for anti-drillers: methane found in water samples she analyzed was not from shale drilling but is naturally occurring (see WVU Prof: Methane in Water Supplies is Not from Fracking). Dr. Sharma has been awarded $351K from the NSF grant to “probe the chemical and isotopic biomarkers that microorganisms leave behind during their growth and respiration process.” Er, right. A bit beyond our comprehension, but we’re sure it’s valuable research nonetheless! Here’s the announcement from WVU about the grant and what researchers will be doing with the money (if you understand it)…
Read More “WVU & OSU Score $2M from NSF for Shale Energy Research”
CONSOL Energy | Economic Impact | Energy Companies | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling
October 29, 2013October 29, 2013

CONSOL Energy continues what seems to be its inevitable transformation from being a coal mining company to being a natural gas drilling company. The federal government (EPA) is killing the coal industry by killing electric power generating plants that run on coal with onerous new “pollution” standards. It is intentional–Obama’s EPA wants to kill coal. CONSOL is feeling the heat–losing more and more customers for their coal. And so CONSOL has announced they’re selling five more of their coal mines located in West Virginia and Pennsylvania and using the money to expand their natural gas drilling operation.

In fact, CONSOL says it plans to invest an eye-popping $24 billion in West Virginia and Pennsylvania natural gas drilling over the next 10 years. By comparison, MDN found in the most recent volume of the Marcellus and Utica Shale Databook that announced midstream infrastructure projects in the northeast add up to a $40 billion investment. CONSOL, a single driller, will spend more than half that amount on new drilling alone! These are truly staggering numbers and very good news for the states involved. Too bad New York (where MDN is located) is seeing NONE of this investment…
Read More “CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling”
Accidents | Energy Services | Industrywide Issues | MarkWest Energy | Ohio County | Pipelines | West Virginia

MarkWest Pipeline Construction in WV Destroys Nearby House
October 29, 2013October 29, 2013

Sad and unusual: MarkWest Energy was drilling near a home in Valley Grove (Ohio County), WV to install a pipeline when drilling mud and water found its way into an abandoned water well and then up into the basement of the home of Becky and John Wieczorkowski. The drilling mud/water damaged the home, likely beyond repair, by moving it off its foundation.

Apparently MarkWest was not aware of the uncased, abandoned well that sat beneath the Wieczorkowski’s home. It does not appear to be a case of negligence on the part of MarkWest, but of ignorance. MarkWest is making it right for the homeowners and investigating to see what went wrong…
Read More “MarkWest Pipeline Construction in WV Destroys Nearby House”
Chesapeake Energy | Chevron | Energy Companies | Ohio County | West Virginia

Chevron Transfers 1,500 Acres of Leases to Chesapeake in WV
October 28, 2013October 28, 2013

The wheeling and dealing with gas leases in the Utica (and Marcellus) seems to be far from over. Last week MDN broke the news that Aubrey McClendon’s new company had picked up 24,650 acres from from SWEPI (Shell) in the Utica Shale in Guernsey County, OH (see Exclusive: McClendon Buys 24K Acres of SWEPI Leases in OH Utica). Now comes news that Chevron has sold 1,500 acres of leases in Ohio County, WV to Chesapeake Energy.

Here are the details, including the names of landowners whose leases were transferred…
Read More “Chevron Transfers 1,500 Acres of Leases to Chesapeake in WV”
Industrywide Issues | Jobs | Regulation | Statewide WV | West Virginia

How Many New WV Jobs Go to Out-of-State Workers? We Can’t Know
October 28, 2013October 28, 2013

A developing issue in West Virginia is how many of the new jobs created in the state (which was up an astonishing 20% last year) are going to WV workers, and how many are going to out-of-state workers? According to WV’s 2011 Horizontal Well Control law, the annual report filed by the Dept. of Commerce’s Workforce West Virginia division is supposed to break it down. Problem is, both last year’s report and this year’s (recently issued, see Looking for a Job in the Marcellus? Think WV), does not provide the required in-state/out-of-state numbers.

Technically, Workforce WV is breaking the law by not providing the numbers–but not because it’s intentional. The one WV agency that could provide Worforce WV with the numbers they need for the report–the Revenue department–is prevented from doing so, by law. Talk about screwed up…
Read More “How Many New WV Jobs Go to Out-of-State Workers? We Can’t Know”
Industrywide Issues | Jobs | Statewide WV | West Virginia

Looking for a Job in the Marcellus? Think WV
October 24, 2013October 24, 2013

If you’re looking for a job in the natural gas industry, you may want to consider…West Virginia. According to a new report from the Workforce West Virginia Investment Council, employment in the oil and gas industry in WV jumped a dramatic 20% last year. Not only that, but the average wage of the average o&g worker in WV jumped $5,500 in just one year–to $75,580.

Perhaps a jump in o&g workers in WV is not all that surprising, but what may surprise you is that employment in the o&g pipeline sector doubled last year from around 2,000 to around 4,000–up more than 100%! Yes, WV is a happenin’ place when it comes to shale drilling…
Read More “Looking for a Job in the Marcellus? Think WV”
Industrywide Issues | Research | Statewide WV | Wastewater | West Virginia

“Consultant” Says 62% of Marcellus Waste Goes Missing in WV
October 23, 2013October 23, 2013

A “consultant” testifying before West Virginia legislators on Tuesday said that WV has no idea where nearly 2/3 of shale drilling wastewater goes for disposal. He also accused the WV Dept. of Environmental Protection (WVDEP) of not doing their job with respect to reporting and tracking shale waste as directed by the 2011 Natural Gas Horizontal Well Control Act.

The consultant doing the accusing–Evan Hansen, president of the consulting firm Downstream Strategies–was there shilling for the anti-drilling group Earthworks. Therefore, the results of the so-called study (to be released next week) performed by his so-called consulting firm are at a minimum suspect…
Read More ““Consultant” Says 62% of Marcellus Waste Goes Missing in WV”
Energy Services | GreenHunter Resources | Industrywide Issues | Ohio County | Wastewater | West Virginia

Wheeling Councilwoman Will Shun GreenHunter Ribbon Cutting
October 23, 2013October 23, 2013

Wheeling, WV City Councilwoman Gloria Delbrugge is a sore loser. Sounding like a petulant child, she says she won’t attend a ribbon-cutting ceremony for GreenHunter Water as they begin to demolish old buildings and build new buildings for a frack wastewater recycling facility in Wheeling. MDN told you in March that Delbrugge vowed to stop the plant from coming to Wheeling (see Wheeling Councilwoman Vows to Prevent Frack Water Treatment Plant). When she calmed down a bit, it seemed as though she had softened her opposition (see Wheeling Councilwoman Softens Stand Against Frack Wastewater Plant).

But, true to form for most anti-drillers, the facts make no difference. Delbrugge says she doesn’t like ’em (GreenHunter), she doesn’t want ’em, and she doesn’t trust ’em. And so when the ribbon is cut in the next few weeks, Gloria will not regale them with her eminent presence…
Read More “Wheeling Councilwoman Will Shun GreenHunter Ribbon Cutting”
Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

Did Gov Tomblin Find a European Investor for a WV Cracker Plant?
October 22, 2013October 22, 2013

At the beginning of October, MDN told you that West Virginia Gov. Earl Ray Tomblin was heading out on a 13-day whirlwind European ~~vacation~~ trade mission to five different countries. One of his aims was to find someone to invest in an ethane cracker plant in West Virginia (see WV Gov Going to Europe to Find Him a Cracker). Tomblin is almost done touring Europe and said by phone from Switzerland that “he expects to make announcements within the next few days concerning deals made” as a result of his trip.

Will one of those announced deals be an investment in a cracker plant?…
Read More “Did Gov Tomblin Find a European Investor for a WV Cracker Plant?”
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

WVU Prof Tells Legislators 625′ Setback in Drilling is Not Enough
October 22, 2013October 22, 2013

A West Virginia University professor that helped prepare a report for the WV Dept. of Environmental Protection (WVDEP) continues to voice concerns about the way the WVDEP has interpreted the results of the study he helped research. In June the WVDEP released a third and final study (this one on air quality) required under WV’s 2011 Horizontal Well Control legislation. The report as issued by the WVDEP says based on the results of the research study, no new regulations are needed to control air emissions around drilling sites (see WVDEP Releases Study on Air Quality Impacts of Shale Drilling).

However, Dr. Michael McCawley, chairman of the Dept. of Occupational & Environmental Health Sciences in the School of Public Health at WVU and author of the original “raw” report, said he thinks air emissions from Marcellus and Utica shale drilling do need tweaking, particularly the amount of distance required from a well site to the nearest structure, like a home or school (called a “setback”). McCawley thinks 625 feet from the center of a well pad is not enough (see Did WVDEP Ignore It’s Own Research on Shale Well Air Pollution?). On Monday Dr. McCawley was back before WV legislators making the same argument…
Read More “WVU Prof Tells Legislators 625′ Setback in Drilling is Not Enough”
Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

Electronic Permit Filing for Marcellus Drilling Coming Soon in WV
October 21, 2013October 21, 2013

In December 2011 a special session of the West Virginia legislature took up and passed a new Marcellus drilling bill in record time–four days flat–although in reality it took most of 2011 to prepare the legislation. The WV Senate passed the “Horizontal Well Act” 33-0 and the House passed it 92-5. Gov. Earl Ray Tomblin signed it immediately. (For a summary of what’s in the “new” law, see WV Has New Marcellus Drilling Law in Record Time).

It’s now been nearly two years since then, time for a status report. WV Dept. of Environmental Protection (WVDEP) spokesman Tom Aluise says the new law is paying off. Aluise talked about a new electronic permit filing system on the way, and he identifies the top five counties in WV with Marcellus wells…
Read More “Electronic Permit Filing for Marcellus Drilling Coming Soon in WV”
Housing | Industrywide Issues | Ohio | Washington County (OH) | West Virginia | Wood County

Drilling Impact: Rental Housing Soars Around Marietta/Parkersburg
October 21, 2013October 21, 2013

One sector typically affected early in the drilling process is real estate. In some areas where drilling comes to town, sales of single family homes increase. So far there’s only been a slight uptick in home sales for the Marietta (Washington County), OH/Parkersburg (Wood County), WV area.

Apartment and house rentals, however, are a whole other matter. They’ve taken off like a rocket in the region. New hotel and motel construction is now under way as well…
Read More “Drilling Impact: Rental Housing Soars Around Marietta/Parkersburg”
Atlas Energy | Blue Racer Midstream | Energy Companies | Energy Services | Harrison County | Lycoming County | Marshall County | Ohio | Pennsylvania | West Virginia

Atlas Update: Finding Alternatives to Blue Racer Natrium Plant
October 17, 2013October 17, 2013

Atlas Resource Partners (ARP), a driller working in several plays–including the Marcellus and the Utica–issued a financial and operations update yesterday. Included in the update are details of Atlas’ recent activities in the northeast–number of wells drilled, etc. Pretty standard stuff–the “normal” kind of periodic press release issued by drillers, except…

It’s interesting to MDN that in Atlas’ update they mention, rather prominently, the ongoing issue that Blue Racer Midstream’s Natrium processing plant has been shut down since an explosion and fire occurred on Sept. 21st (see Natrium, WV Fractionation Plant Still Closed After Explosion/Fire). The shut-down is having a significant negative affect on Atlas’ ability to get gas to market. So Atlas, like other drillers in the Ohio Valley area, is seeking alternative sources to process their gas. They’ve located a partial solution and continue to look.

Blue Racer has a growing problem on their hands with the continued shut-down of Natrium if their customers continue to find other solutions…
Read More “Atlas Update: Finding Alternatives to Blue Racer Natrium Plant”
Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing
October 16, 2013October 16, 2013

Will the northeast ever get an ethane cracker plant to handle the massive amount of ethane being produced in wet gas areas of western PA, eastern OH and the panhandle of WV? Some people think so (MDN among them), although each year that goes by without a cracker it seems less likely because of new ethane and NGL pipelines being built to haul ethane out of the northeast. Still, people “in the know” say they have a feeling. Kind of reminds us of the old BJ Thomas song, “Hooked on a Feeling.”

Yesterday at the Wheeling (WV) Economic Outlook Conference, Don Rigby, executive director of the Wheeling-based Regional Economic Development Partnership, was the latest “in the know” person to say he’s hooked a cracker feeling…
Read More “I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing”