West Virginia 153 - Marcellus Drilling News

Marshall County, WV Pipeline Installation Problems

June 25, 2012June 25, 2012

George Lagos and his small staff of water department employees who work at Marshall County (WV) Public Service District No. 4 (PSD No. 4) have a problem—too many gas pipelines being laid, not enough workers to inspect the process.

PSD No. 4 serves a large area of the county between Moundsville and Cameron. Lagos and two others are responsible for inspecting and maintaining 200 miles of water and other types of pipelines. When new natural gas pipelines are installed, Lagos is supposed to get 48 hours notice so they can monitor the installation. According to Lagos, that isn’t happening.

Aither Chemicals Still Trying for a Cracker Plant in WV

June 22, 2012June 22, 2012

never give up Will West Virginia ever get its own ethane cracker plant? It will if Aither Chemicals, based in South Charleston, WV has any say in the matter. MDN has been following the Aither story for some time. Aither Chemicals, a spin-off/subsidiary of Mid-Atlantic Technology, Research & Innovation Center, was established to build and operate ethane cracker plants that use modern technology making the plants smaller and less expensive to build and operate than tradition cracker plants (see this MDN story for background).

Aither had a deal in principle with Bayer CropScience and MarkWest Energy to build one of these “new” kinds of cracker plants in the Charleston, WV area. That deal was set to be officially announced in mid-March (see this MDN story). But then the wheels came off the wagon and all was silent. No deal, no announcement. Until now.

Industrywide Issues | Regulation | Statewide WV | West Virginia

EPA’s Aggressive Actions Against Marcellus Drillers

June 19, 2012June 18, 2012

An attorney writing on the JD Supra legal website says it’s not just the imagination of oil and gas drillers in the Marcellus Shale region—the federal Environmental Protection Agency (EPA) really is out to get them. He proceeds to use statistics to show the rapid escalation in citations coming from the EPA since 2010.

Industrywide Issues | Jobs | Statewide WV | West Virginia

WV Oil & Gas Employment Numbers: Underreported by 14K?

June 15, 2012June 15, 2012

MDN reported two days ago that WorkForce West Virginia reported that direct jobs held by West Virginians in the oil and gas industry in the state had actually decreased from 2010 to 2011 (see this MDN story). We observed the total number of jobs cited, 2,179 in 2011, seemed really low, and perhaps inaccurate. WorkForce WV says that’s the total number of “direct” jobs held by West Virginians so we took them at their word.

But what’s a “direct” as opposed to an “indirect” (but created because of the drilling industry) job? Seems we’ve hit some semantic issues here. According to the Independent Oil and Gas Association of West Virginia, the actual number is something over 16,000 jobs:

Industrywide Issues | Jobs | Statewide WV | West Virginia

Does Shale Gas Drilling Create Jobs for In-State Residents?

June 13, 2012June 13, 2012

There’s no doubt that Marcellus and Utica Shale drilling creates jobs. But one of the criticisms often leveled is that jobs directly related to drilling are given to people from other states, like Texas and Louisiana and Oklahoma—states with experienced oil and gas workers who don’t need extensive training.

Recent employment numbers from West Virginia seem to lend credence to those concerns. The unemployment rate has risen slightly in WV, but more telling, employment of West Virginians who work directly in the oil and gas sector dropped slightly from 2010 to 2011. However, indirect jobs in other industries—like hotels, restaurants and retail businesses—have gone up due to drilling. It seems to be a mixed picture, at least in WV, with respect to job creation.

WV Couple Challenges Chesapeake Lease Renewal

June 13, 2012June 13, 2012

A husband and wife in Brooke County, West Virginia are suing to have their 5 year-old lease, which is now expired and up for renewal, nullified so Chesapeake (now the owner of the lease) cannot automatically renew it as they are attempting to do.

Increasingly landowners who signed leases that are now expiring after a customary 5 year period face the same issue—and drillers are trying to lock them in under the terms of lease for a new period of time.

Here’s the story of Ramon and Lois Bowen:

Industrywide Issues | NG Vehicles | Statewide WV | West Virginia

WV Task Force Investigates CNG for State Vehicles

June 11, 2012June 11, 2012

West Virginia Gov. Earl Ray Tomblin wants the state-owned vehicles in his state to run on compressed natural gas (CNG) produced right in his own state, and he’s assembled a task force to investigate how to make it happen:

New Drilling Mud Facility Opens in Marshall County, WV

June 8, 2012June 8, 2012

AES Drilling Fluids along with officials from the city of Benwood (Marshall County, WV) and state officials held a ribbon-cutting ceremony yesterday on a new $2 million drilling fluids facility just opened in the North Benwood Industrial Park. The new facility provides drilling mud to drillers in the Marcellus and Utica Shale.

Antero Hits Aquifer in WV, Creates Backyard Geysers

June 8, 2012June 8, 2012

Antero Resources was drilling a natural gas well in the Sardis, WV area (near Clarksburg) when they hit a water aquifer in the area. It resulted in several abandoned nearby water wells to start gushing water, some of it blowing 10 feet or more into the air. But there were no chemicals being used during drilling, it was the initial stages and only water and air were used, and the air is what caused the problem.

Here’s what happened:

Hydraulic Fracturing | Industrywide Issues | Monongalia County | Regulation | West Virginia

Morgantown WV Attempts to Ban Fracking a Second Time

June 6, 2012June 6, 2012

Here we go again. Yesterday, the Morgantown, WV City Council voted on new legislation that would “regulate” (i.e. ban) hydraulic fracturing. But this time, those sharp-as-a-tack council members have contented themselves with regulating it within their own borders.

You may recall that last year the same Morgantown City Council (pictured below) passed a ban on fracking that included areas up to one mile outside of the city limits in a blatant attempt to try and stop the fracking of two gas wells that sit about a mile from the edge of the city. A WV circuit court judge overturned the ban (see this MDN story). Since then, both of those Marcellus wells were fracked, came online, and somehow, mystically—there has been no water contamination or ill health affects of any kind. Who woulda thunk?

Lease & Royalty Payments | Statewide WV | West Virginia | Wetzel County

Royalty & Production Figures from WV Northern Panhandle

June 4, 2012June 4, 2012

An excellent article in Sunday’s The Intelligencer/Wheeling News-Register takes a look at production numbers for a sampling of natural gas and oil wells in the northern panhandle of West Virginia. Chock full of numbers, some of the gems include:

Brooke County WV Schools Get $661K in Lease Payments

May 29, 2012May 29, 2012

Brooke County Schools in West Virginia are eager to have Chesapeake Energy drill under school-owned property. But Ohio County Schools, also in WV, don’t want Chesapeake drilling near their schools. What’s the difference? One is getting a boatload of money in lease (and eventually royalty) payments. The other isn’t.

Statewide WV | West Virginia

Why 4 Months to Approve WV Marcellus Permits?

May 22, 2012May 22, 2012

West Virginia Department of Environmental Protection (WVDEP) Secretary Randy Huffman says it’s taking about four months on average to process a Marcellus Shale gas well permit in WV—which is about three months longer than it should be taking, according to Huffman. Why the delay? Four reasons:

High Paying Jobs Come to Marshall County, WV Processing Plant

May 21, 2012May 21, 2012

Some high paying jobs are on the way to Marshall County, WV courtesy of a new natural gas processing plant being built by Dominion and opening in December. What’s good paying? How does $30 per hour sound?

Statewide WV | West Virginia

Inspectors Angry with WV DEP Over New Marcellus Hires

May 16, 2012May 16, 2012

Twenty inspectors with the West Virginia Department of Environmental Protection (DEP) have filed grievances alleging that the DEP is creating a two-tiered (and unfair) system for pay, job qualifications and job requirements in the DEP’s push to hire new inspectors for Marcellus Shale drilling. The inspectors are members of the West Virginia Public Workers Union. The union is lobbying to correct the situation.

MDN Analysis of Rig Counts in Marcellus/Utica

May 15, 2012May 15, 2012

Drilling rig counts are closely watched as an indicator of where, and how much, drilling is happening in a given geography. Last Friday, Baker Hughes reported that rig counts for Pennsylvania continue to decline from a year ago, while the numbers for West Virginia are going up. But that doesn’t quite tell the whole story.