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Mon Power Completes Project to Support WV Shale Industry

antero resourcesLast week MDN provided an update on Antero Resources’ $275 million state-of-the-art frack wastewater treatment plant in Doddridge County, WV (see Update on Antero’s $275M Wastewater Facility in WV). Things are progressing very nicely at the facility. Another important piece has just fallen into place for the facility. In order to operate it, you need LOTS of electricity. Enter Mon Power. Mon has just completed a new substation and power lines–a $5 million project–to provide electric service to the Antero frack wastewater treatment plant being built…
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Shale Crescent Luring Petchem Companies to Mid-Ohio Valley

Shale Crescent USAIn June MDN told you about an economic development group of business and government leaders from Ohio and West Virginia (the Mid-Ohio Valley) called Shale Crescent (see Group Promotes Mid-Ohio Valley for Petrochem: Shale Crescent USA). The group was two years in the making and officially launched in June at a public event in Washington County, OH. The aim of the group is to attract manufacturers–particularly petrochemical manufacturers–to set up shop in the region. Although the organization is still in its infancy, it’s already having an impact and is talking to large petchem companies (“household names”) about building plants in the Mid-Ohio Valley region to take advantage of cheap Marcellus/Utica Shale gas and NGLs…
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Update on Antero’s $275M Wastewater Facility in WV

antero resourcesIn August 2015, MDN told you that one of the biggest drillers in the Marcellus/Utica, Antero Resources, floated the idea of building a $275 million state-of-the-art frack wastewater treatment plant in Doddridge County, WV (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The new plant, which will process 60,000 barrels of wastewater per day, will save Antero $150,000 per well in completion costs once it’s up and running. In February 2016, Antero filed for a permit to build a landfill next to the wastewater plant (see Antero Plans Salt Landfill Next to Proposed Wastewater Recycling Plant). The wastewater plant will separate water, salt and radioactive particles. The salt can be sold to municipalities for use as road salt–but frankly there’s not enough of a market to sell it all. And not all of it will be of sufficient quality to be sold that way. So Antero needs a place to dispose of it, hence the $20 million landfill proposal. Predictably, there has been some resistance to the new facility and landfill. The good news is that the facility is on track for a 2017 opening. Below is an update on the wastewater facility and the salt landfill next to it…
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Fayette County, WV Appeals Federal Court Ruling on Injection Well

appealIn January, three liberal Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). The ban was intentionally written so broadly it would also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). One of the chief architects of the ban, from the Mountain Party, admits the ban was intended to stop all oil and gas activity in the county (see Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells). Fearing they would lose the EQT lawsuit, in March the commissioners backed away from the position of banning everything to do with drilling in the county. They revised the proposed ban regulation as a tactic to avoid losing their court case (see Fayette WV Commissioners Change Ban to Focus on Injection Wells). In June, a federal judge tossed out Fayette’s illegal ban (see Federal Judge Rules Fayette County Injection Well Ban Illegal). Now the lib Dems, with the assistance of the radical Appalachian Mountain Advocates, has had the gall to appeal the federal judge’s decision…
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WVU Prof Gets $110K Grant to Research ‘Methane Aromatization’

GAA West Virginia University engineering prof has just been awarded $110,000 to study methane aromatization. What’s that? It’s the process of turning methane, or natural gas, into “higher value products” like benzene and hydrogen. It’s not as easy as it may sound. If the good prof is successful, it may open up new markets in the northeast for our overabundant natural gas supplies. Here’s the lowdown…
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US Methanol Confirms MDN Rumor – 2 (or More) Plants Coming to WV

confirmedLast week MDN was the first to share the news that the California-based US Methanol is building at least two, rumored up to five, methanol plants in the Mountain State (see Rumor: US Methanol Building 5 Methanol Plants in WV). MDN shared a rumor (based on a source) that until we disclosed it, was not public knowledge: The first methanol plant they will build will be in Institute, WV, and the second in Belle, WV–both in the Charleston region. We now have confirmation of that rumor via several news accounts. We also told you that both plants were being disassembled in other countries and brought here. We now know which countries are losing the plants that will be reassembled in Institute and Belle…
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Progress for 3 WV NatGas Electric Plants; 1 Breaks Ground in 2016

energy-solutions-consortium-logo-1In April 2014 MDN brought you the exciting news that a father and son team, Andrew and Matthew Dorn (based in Buffalo, NY) would build a 549-megawatt electric generating plant, powered by Marcellus Shale, in Moundsville (Marshall County), WV (see Marcellus-Powered Electric Plant Coming to Marshall County, WV). The Dorns, who later named their company Energy Solutions Consortium, announced in March 2015 plans to build more plants in WV (see Big News: 3 More Marcellus-Powered Electric Plants Coming to WV). We have an update on the progress for all of the plants the Dorns want to build in the Mountain State–with a massive $2 billion investment. The short version: all projects are progressing nicely, and the Marshall County project will break ground this year…
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Shell Working on 94-Mile Ethane Pipeline to Feed PA Cracker

ethane.jpgAll the way back in February MDN brought you exclusive news that Shell had begun approaching landowners in Beaver County to get them to sign easements for two ethane pipelines to feed the mighty cracker plant they plan to build in the county (see Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant). At that time Shell had still not fully committed to building the cracker–something they finally did in June (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). NGI’s Shale Daily has broken a story that gives us new details. Shell is working on a 94-mile ethane “pipeline system” with two “legs” to feed the cracker, confirming the tip we received in February. The new ethane pipeline system has a name: the Falcon Ethane Pipeline System. Here’s brief details about the new ethane pipeline system…
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4 WV Counties Refuse to Grant Statoil $6.6 Million in Tax Refunds

lawsuitBrooke County, WV makes it four for four in denying Statoil’s request to refund tax overpayments made by the company. Statoil, based in Norway, is a big player in the West Virginia Marcellus Shale. Statoil paid property taxes to Brooke, Marshall, Ohio and Wetzel counties (all in WV) in 2015 and later found, during an audit/review, that they had overpaid those counties. They overpaid Brooke by $1.8 million, Ohio by $2.9 million, Wetzel by $1.6 million and Marshall by $342,000. We previously reported on Marshall’s refusal to refund the money (see Statoil Wants Millions in Refunds from Tax Overpayments in WV). The WV Tax Department argues that Statoil “acted negligently” and exercised “poor judgment” in not finding the mistake sooner. With Brooke’s refusal, all four counties have now voted to deny Statoil’s request. Statoil is (so far) taking Marshall and Ohio counties to court, suing them for refunds. They are “assessing…options” with respect to suing Wetzel and Brooke. You can bet your bottom dollar they will…
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Experts Say New Marcellus/Utica Drilling “Imminent”

the beastWe’d never heard this before, but apparently the Marcellus/Utica has been known for some time as the “Beast of the East.” Fitting! However, our region has gone from “Beast of the East” to “Beast on a Leash.” Very true. Low prices have suppressed new drilling projects. But according to experts on a recent webinar held by S&P Global Platts, new Marcellus/Utica drilling “is imminent.” Now that’s REALLY good news! Here’s some other things said on the webinar…
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Rumor: US Methanol Building 5 Methanol Plants in WV

rumor mongeringMethanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze and more. More commonly you may call it a gas-to-liquids (GTL) plant. Methanol plants have the capacity to create a big demand for natural gas and sop up some of the oversupply we have in the Marcellus/Utica. In May we told you about Primus Green Energy’s plan to build a 160 metric tons per day (MT/day) methanol plant for Tauber Oil somewhere in the Marcellus (see Customer Announced for Primus Green Energy’s GTL Methanol Plant). We have more exciting news. US Methanol, according to their website, is working on two Marcellus methanol plants, coming to West Virginia. One plant, called Liberty One, will produce 175,000 metrics tons per annum, or about 480 MT/day. Liberty Two will produce 150,000 MT/annum, or a about 410 MT/day. Here’s the really really exciting news. We’ve stumbled across a rumor that U.S. Methanol is actually planning to build five methanol plants total. According to the rumor, we know where the first two plants already announced (Liberty One and Two) will be built–AND we know which driller they’ve contracted with to supply the natgas for those plants…
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WVU Effusive Over “Green” Drilling Fluid Used in Test Wells

effusiveIn July MDN told you about exciting new publicly-financed research at West Virginia University that finds waste from Marcellus/Utica drilling (“frack waste”) is not radioactive or hazardous (see Independent Research @ WVU Concludes Frack Waste is Safe). Anti fossil fuel nutters would have you believe frack waste is an environmental holocaust–but such is proven to not the case. It’s been our observation that when Big Green groups don’t finance (i.e. purchase) research, you get honest, real science results. Like the results coming out of WVU’s 5-year study (financed by the U.S. Dept. of Energy). WVU, along with partner Ohio State University, is in the midst of drilling two Marcellus wells near Morgantown, WV. They are testing and measuring all sorts of things–air, noise, light and water and frack waste (see Drilling for WVU/OSU’s $11M Study Gets Underway in Morgantown). One of the key areas researchers are testing is the use of “green” drilling fluid–fluids that are environment and human friendly, even if they get accidentally released. According to WVU researchers, their experimentation will lead to Marcellus industry adopting greener drilling fluids…
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Statoil Sells Another 11.5K WV Marcellus Acres to Antero for $96M

StatoilNorwegian oil giant Statoil, which is 67% owned by the country of Norway, was an early and big mover in leasing Marcellus and Utica Shale acreage, amassing a huge 665,000 acres. Over the past few years Statoil has been equally aggressive in divesting itself of its non-operated acreage (Statoil doesn’t do the drilling) in the northeast–in particular in West Virginia. This is about to get complicated, but we’ll try to make it understandable. A lot of Statoil’s acreage is in joint venture deals. In December 2014, Statoil sold some of its “working interest” in the Marcellus acreage it owns in WV and PA to Southwestern Energy for $394 million (see Statoil Reduces Marcellus Holdings in $394M Deal with Southwestern). The deal reduced Statoil’s ownership in its WV acreage from 32.5% down to 23%. In June of this year, Antero Resources purchased some of that WV acreage from Southwestern (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). Antero snapped up even more in the same geography in July (see Antero Resources Picks Up Another 13K Marcellus Acres for $108M). Yesterday Statoil announced it is selling more (the rest of?) its ownership in non-operated WV Marcellus acreage to Antero–some 11,500 net acres–for $96 million in cash. That is, Antero continues to consolidate and take full ownership over Marcellus acreage in WV–primarily in Wetzel, Tyler and Doddridge counties…
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Comprehensive List of Laws Coming at Marcellus/Utica in PA-OH-WV

nortonrosefulbrightThe legal beagles at global law firm Norton Rose Fulbright have done us all a huge favor. Researchers have just issued a quarterly legislative action update for the second quarter of 2016 looking at previously laws acted upon, and new laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. The “Quarterly legislative action update: Marcellus and Utica shale region” (full copy below) begins with a quick listing by state for existing or new laws introduced, with descriptions for each bill/law. This is, in one place, pretty much everything you need to know about what new laws (i.e. regulations) are coming down the pike that will affect the Marcellus and Utica Shale drilling industry…
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WVU Launches INFUSE Program to Help Other Countries with Shale Dev

WVU logoThe U.S. State Department and West Virginia University (WVU) want to give other countries interested in developing their own shale deposits a helping hand. The State Department’s Bureau of Energy Resources has reached a cooperative agreement with WVU to create the International Forum on Unconventional Gas Sustainability and the Environment, or INFUSE, a unique technical program dedicated to increasing other countries’ understanding of best practices for unconventional gas resource development. INFUSE will use a mix of classroom and in-the-field activities. Here’s the lowdown on INFUSE…
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FERC Grants Dominion Clarington Project a 1-Year Extension

FERC logoIn June 2014 Dominion filed an application with the Federal Energy Regulatory Commission (FERC) to construct and operate new compression facilities at existing compressor stations in Marshall County, WV and Monroe County, OH, and certain other facilities, collectively called the Clarington Project (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The Clarington project, costing a modest $76.5 million, will allow Dominion to provide 250,000 dekatherms (Dth) per day of firm transportation service for CNX Gas, otherwise known as CONSOL Energy. Last August, FERC approved Dominion’s request (see FERC Approves Dominion WV/OH Compressor Project, Rips Anti Group). FERC gave Dominion a year to complete the project, but Dominion filed a request last Friday requesting more time. FERC agreed and has extended the project completion date an extra year…
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