West Virginia

Accidents | Energy Companies | Harrison County | Hydraulic Fracturing | Industrywide Issues | PDC Mountaineer | Regulation | West Virginia

EPA Fines PDC Mountaineer for Clean Water Act Violations in WV
November 30, 2012November 30, 2012

The federal Environmental Protection Agency (EPA), under the guise of the Clean Water Act (CWA), is poking it’s unwanted nose into Marcellus Shale gas drilling—again. Yesterday the EPA announced a settlement with PDC Mountaineer for what they say are violations of the CWA at four locations (for two gas wells). The company will pay a fine of $177,500, in addition to paying big bucks to restore problems they created while drilling two wells in Harrison County, West Virginia.

What was PDC’s environmental crime? They drained a one-acre swamp (euphemistically called a “wetland”) without getting permission. Even though PDC has agreed to pay the fine and restore the swamp (if they can), as part of the deal they did not admit to any violations of the CWA.

Read More “EPA Fines PDC Mountaineer for Clean Water Act Violations in WV”
Economic Impact | Hancock County | Industrywide Issues | Processing Plants | West Virginia

WV Refinery Expanding with Marcellus/Utica Crude Oil
November 30, 2012November 30, 2012

Ergon, Inc., a crude oil processor headquartered in Jackson, MS but with operations in other states, including West Virginia, announced Wednesday there’s enough crude oil flowing from the Marcellus and Utica Shale region that they are investing $78 million to add more refining capacity to their plant in Newell, WV.

From the Ergon press announcement:

Read More “WV Refinery Expanding with Marcellus/Utica Crude Oil”
Economic Impact | Industrywide Issues | Jobs | Statewide WV | West Virginia

WV Jobs, Wages Go Up Because of Marcellus Shale Drilling
November 29, 2012November 29, 2012

WorkForce West Virginia issued a new report to the WV legislature on Wednesday documenting that employment throughout WV in the oil and gas industry has increased 10% since 2008, and average wages for those workers have gone up 19%. Why? The Marcellus Shale, of course.

A few more interesting facts and figures from the report:

Read More “WV Jobs, Wages Go Up Because of Marcellus Shale Drilling”
Energy Companies | Trans Energy | West Virginia | Wetzel County

Trans Energy Update on WV Marcellus Wells: “Two of Our Best”
November 28, 2012November 28, 2012

Trans Energy issued the following production update yesterday about two Marcellus Shale wells they’ve drilled in Wetzel County, WV, which they call “two of our best performing wells to date”:

Read More “Trans Energy Update on WV Marcellus Wells: “Two of Our Best””
Industrywide Issues | Litigation | Statewide WV | West Virginia

Major WV Court Case Goes Against Surface Landowners
November 27, 2012November 27, 2012

A major court case before the West Virginia Supreme Court was decided last week, and the decision is not favorable to surface rights landowners. MDN previously alerted you to the case as it went to court back in September (see this MDN story). In brief, in WV the sub-surface mineral rights in many cases were severed and sold separately from the surface landowner rights—years ago. Surface rights landowners understand that mineral rights owners (and drillers) need access, but they want the right to have a say in where a drilling pad will be located on their property—and just compensation for taking the property for that purpose.

The WV Supreme Court decided last week (a copy of the decision is embedded below) that surface rights landowners cannot challenge WV DEP permits for drill pads, and where the pads are located, on their property:

Read More “Major WV Court Case Goes Against Surface Landowners”
Antero Resources | Crestwood Midstream | Doddridge County | Energy Companies | Energy Services | Harrison County | Industrywide Issues | Pipelines | West Virginia

Crestwood Midstream Buys 4 Compressor Stations in WV
November 27, 2012November 27, 2012

Crestwood Marcellus Midstream announced yesterday they have purchased four compression/dehydration stations from Enerven Compression for $95 million. The stations service Crestwood’s own gathering pipelines in Harrison and Doddridge counties in West Virginia. Antero Resources is the driller in the area using the Crestwood pipeline system. Crestwood’s CEO calls it a “bolt-on acquisition” for the company.

From the Crestwood press release, which includes an update on their Marcellus-related business with Antero:

Read More “Crestwood Midstream Buys 4 Compressor Stations in WV”
Chesapeake Energy | Energy Companies | Housing | Industrywide Issues | Ohio County | Regulation | Statewide WV | West Virginia

Chesapeake Energy Receives First ‘Labor Camp’ Permits in WV
November 26, 2012November 26, 2012

Some people call them “man camps.” Others call them “labor camps.” Whatever you call them, small groups of people (usually men) working on location and living in trailers—like what happens at drill pad sites—are now officially called labor camps in West Virginia. If a site in WV has 10 or more people living and working on location, you need a special permit according to a new state law.

Chesapeake Energy has become the first driller in WV (Ohio County) to apply for and receive a labor camp permit:

Read More “Chesapeake Energy Receives First ‘Labor Camp’ Permits in WV”
Industrywide Issues | Statewide WV | Taxation | West Virginia

WV Considers ‘Future Fund’ to Stash Away Oil & Gas Revenue
November 20, 2012November 20, 2012

A USA Today article from yesterday takes a new swipe at the theme “Alaska and other states tax oil and gas and create a rainy day fund, so West Virginia, Pennsylvania and other states should do it too.” Should they? Pro-drillers will have differing opinions. What is interesting to MDN about the story, aside from the list of states that currently tax oil and gas (and what they do with it), is what West Virginia is considering, and the “let’s face reality, fracking is here to stay” comments attributed to a liberal group in the state.

The bits from the article relevant to the Marcellus and Utica Shale:

Read More “WV Considers ‘Future Fund’ to Stash Away Oil & Gas Revenue”
Aither Chemicals | Energy Services | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Statewide PA | Statewide WV | West Virginia

Aither Chemicals Still Wants to Build a Cracker Plant in WV
November 19, 2012November 19, 2012

Still more talk about an ethane cracker plant for West Virginia—this time from perennial ethane promoter Aither Chemicals. At last week’s Developing Unconventional Gas (DUG) East conference in Pittsburgh, Aither’s CFO said his company could build a new ethane cracker for a fraction of the cost Shell is proposing for their cracker in Monaca, PA. Another speaker expressed doubts that Shell will actually build their announced cracker plant in Monaca:

Read More “Aither Chemicals Still Wants to Build a Cracker Plant in WV”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | West Virginia | Wood County

Wood County, WV in the Running for Ethane Cracker
November 15, 2012November 15, 2012

According to Kevin DiGregoria, executive director of the Chemical Alliance Zone West Virginia, Wood County, WV is one of the prime locations in the state being considered for a new ethane cracker plant. DiGregorio also said the Marcellus Shale will be around for at least 30 years and is “an economic grand slam” for the state.

DiGregoria was joined by WV Commerce Sec. Keith Burdette at a roundtable discussion in Wood County. Burdette, who has been in the hunt for a cracker plant for the state for nearly two years now, said he’s in regular contact with interested companies:

Read More “Wood County, WV in the Running for Ethane Cracker”
Energy Companies | Trans Energy | West Virginia | Wetzel County

2 New Wetzel County, WV Wells Best Yet for Trans Energy
November 9, 2012November 9, 2012

Trans Energy announced impressive production numbers yesterday for two Marcellus wet gas wells in Wetzel County, WV. In addition, they also provided details on other Wetzel County wells:

Read More “2 New Wetzel County, WV Wells Best Yet for Trans Energy”
Energy Services | Industrywide Issues | MarkWest Energy | Processing Plants | West Virginia | Wetzel County

MarkWest Announces Third Mobley Processing Facility in WV
November 7, 2012November 7, 2012

MarkWest Energy announced today they are expanding and building a new addition to their Mobley complex in Wetzel County, WV. The new Mobley III processing facility will add another 200 million cubic feet of wet gas processing. EQT is mentioned by name as one of the customers for this added new capacity. Both EQT and Magnum Hunter Resources are customers for the first Mobley facility which is due to come online this month. A second Mobley processing facility will be done and online in 1Q13, and the Mobley III announced today will be built and online sometime in 4Q13, about a year from now.

The MarkWest press release about the Mobley complex in WV:

Read More “MarkWest Announces Third Mobley Processing Facility in WV”
Energy Companies | Statewide WV | Stone Energy | West Virginia

Stone Energy 3Q12: Income Down, Revenue Up, Marcellus Expands
November 7, 2012November 7, 2012

Stone Energy reported third quarter results yesterday. The company’s 3Q12 net income was down about half of what it was in 3Q11 (to $23.7 million), but overall revenue was higher—$226.7 million in 3Q12 vs. $209.3 million for 3Q11. The company reports drilling a total of 59 horizontal wells in the Marcellus Shale so far, 17 of them this year (in West Virginia). Of the 59 wells, 35 of them are currently producing.

Highlights from the Stone 3Q12 report:

Read More “Stone Energy 3Q12: Income Down, Revenue Up, Marcellus Expands”
Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Pipelines | Statewide NY | Statewide OH | Statewide PA | Statewide WV | Supply Chain | West Virginia

ShaleNavigator Cloud-Based Mapping Service Continues Expansion [Free]
November 5, 2012November 5, 2012

MDN friend and “partner in crime” Ed Camp (from ShaleNavigator) released a press release on Friday to call attention to some of the latest and greatest features he’s added to the ShaleNavigator service—the web’s premier cloud-based shale mapping system. Ed’s ShaleNavigator maps are the basis for the MDN Marcellus and Utica Shale Databook series (see here for more info on the Databook).

We’re happy to bring you Ed’s latest press release, along with his offer of a free 7-day trial:

Read More “ShaleNavigator Cloud-Based Mapping Service Continues Expansion [Free]”
Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Both Major & Minor NatGas Pipelines Go Unmapped in WV & OH?!
November 5, 2012November 6, 2012

According to a former oil and gas inspector with the West Virginia Dept. of Environmental Protection, West Virginia and Ohio fail to map and keep track of where both major interstate and minor regional and gathering natural gas pipelines are built. Over time, according to this former official, people will forget. It also means there’s no regular inspection of pipelines for corrosion and leaks.

Read More “Both Major & Minor NatGas Pipelines Go Unmapped in WV & OH?!”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Sandy’s Affect on Drillers in the Marcellus & Utica Shale
October 31, 2012October 31, 2012

Although Hurricane turned Super Storm Sandy gave New York City, Delaware and New Jersey a big, black eye (and we grieve for their losses), further inland Marcellus and Utica Shale drillers prepared for and appear to have avoided any major impacts from the storm. Some production was and still is shut in to avoid potential problems, but given the storm is now mostly gone from the Marcellus and Utica Shale region, shut in production should quickly come back online.

Here’s a Sandy report from four of the largest drillers in the Marcellus:

Read More “Sandy’s Affect on Drillers in the Marcellus & Utica Shale”