Statewide WV

American Energy Partners | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Statewide WV | West Virginia

WV Court Declares “Implied Right” to Pool Oil & Gas Leases
May 2, 2016May 2, 2016

A circuit court judge recently ruled on a case in West Virginia with implications for unitization or pooling. No, NOT forced pooling–or forcing landowners who haven’t signed a lease into a drilling unit, forcing drilling under their land. That’s not what this case was about. This case was about landowners with an already-signed lease for vertical wells now being used to allow that land to be pooled with other land and a horizontal well allowed to be drilled under it. The landowners, who wanted a new lease for horizontal drilling (and more money, which is reasonable in our opinion) said because the lease was silent on the matter of pooling or unitizing, it should not be allowed. The judge disagreed and found in favor of the energy company, in this case American Energy…
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Economic Impact | Ethane | Industrywide Issues | Statewide WV | West Virginia

WV Gov Tomblin Woos Japanese to Invest in State’s NatGas Industry
April 25, 2016April 25, 2016

WV Gov. Earl Ray Tomblin

In 2013 West Virginia Gov. Earl Ray Tomblin wooed the Brazilians into investigating and hopefully building a multi-billion dollar ethane cracker in his state (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Odebrecht was supposed to build an ethane cracker near Parkersburg, WV’s third largest city. But then the bottom fell out of the market and Odebrecht’s plans have been shelved (see Odebrecht Pushes the Pause Button on WV Ethane Cracker). We won’t say the project is dead, but there haven’t been any brainwaves in months and the only thing keeping it alive is a respirator. Is that wily WV governor at it again? Last week Tomblin hosted a delegation from Japan, attempting to woo them into exploring “new investment opportunities in natural gas statewide.” What does that mean, exactly? Presentations were delivered by MarkWest and others. MarkWest has several natgas processing and NGL fractionation plants in the state. We know we’re reading between the lines here, but it sure sounds to us like Tomblin is trying to find someone else willing to build a cracker plant in the state…
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Energy Companies | Lease & Royalty Payments | Southwestern Energy | Statewide WV | West Virginia

Even with No Drilling, Southwestern Continues to Renew WV Leases
April 25, 2016April 25, 2016

In a bit of encouraging “this too shall pass,” we spotted an article that says Southwestern Energy Company is actively renewing leases expiring in West Virginia. You may recall that in the fall of 2014 Southwestern purchased 413,000 Marcellus/Utica acres, most of it in West Virginia (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). In 2015 Southwestern was decidedly contrarian and expanded their drilling program when everyone else was scaling back (see Southwestern’s Contrarian Plan: Double Down on Drilling in the Marcellus). The plan worked, sort of. The company achieved record production in 2015, but they also achieved record losses (see Southwestern Energy 2015: Record Production, Big Paper Loss). Which led to Southwestern idling their rigs in the Marcellus/Utica in 2016 (see Southwestern Cuts 2016 Spending 80%, Idles Marcellus Rigs (for Now)). Many of the leases Southwestern purchased from Chessy are now expiring–it’s been five years. The good news is that even though Southwestern isn’t currently drilling, they are re-signing leases–a vote of confidence that drilling will return soon…
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Energy Services | Schlumberger | Statewide WV | West Virginia

Schlumberger Drilling Marcellus Test Wells in WV for DOE’s NETL
April 22, 2016April 22, 2016

Schlumberger is the largest oilfield services company in the world. Based in Houston, the company doesn’t do all that much work in the Marcellus/Utica region. The company issued it’s first quarter 2016 update yesterday. We typically don’t cover it here on MDN because they’re not heavily involved in our neck of the woods, but we did spot a reference to the Marcellus Shale in the update, which we’ve extracted for you below…
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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

List of 2016 Shale Gas Innovation Contest Finalists
April 12, 2016April 12, 2016

On May 18, the Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC) will announce four $20,000 winners of this year’s Shale Gas Innovation Contest. In addition to showcasing the 12 finalists, this year’s event will also feature a Poster Contest highlighting research underway related to the oil and gas sector–from four major regional research universities. Below we have the list of all 12 finalists with a description of their qualifying technologies. Among the list is one of our favorite companies, HalenHardy, a previous winner of another SGICC award for Shale Gas Environmental, Health, & Safety (see HalenHardy Wins Ben Franklin EHS Award for Silica Air Shower). HalenHardy is headed by serial and intrepid entrepreneur (and MDN friend) Donny Beaver. Good luck Donny!…
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Baker Hughes | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts for World, US Continue Steep Slide in March; M-U Down 1
April 8, 2016April 8, 2016

We’ve now gone beyond cutting into the bone and sinew with rig count losses–we’re now severing limbs. February’s Baker Hughes rig counts were awful, with both international and U.S. counts hitting record lows (see Rig Counts for World, US & Marcellus/Utica Crash in February). Somehow, it got worse in March. International rig counts went down 33 from 1,018 counted in February to 985 in March. In the U.S., rig counts went from 532 in February to 478 in March–a loss of 54 (10%). Month after month it just keeps going lower. Will the patient survive the carnage? On a more positive note, the number of rigs in PA, OH and WV cumulatively (the Marcellus-Utica) went down by just 1 rig. PA’s count went up 1 rig, OH’s count went down 2 rigs, and WV’s count stayed the same. Here’s the details…
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Allegheny County | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Winners of 2016 Northeast Oil & Gas Awards [FREE Access]
April 1, 2016April 1, 2016

Earlier this week (March 30th) the 2016 Northeast Oil & Gas Awards and Industry Summit was held in Pittsburgh. Once again the Awards and the Summit were a smashing success. Congratulations to all of the finalists and winners! Each year the Oil & Gas Awards recognize organizations operating responsibly and supporting the communities they operate within. Now in their 4th year, the Oil & Gas Awards are judged by over 100 senior industry professionals. Partners in the Northeast Awards are The US Chamber of Commerce, The Pennsylvania Chamber of Business and Industry, The Washington County Chamber of Commerce and the Western Virginia Oil and Natural Gas Association. Here is a complete list of the winners, by category…
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Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Somber Milestone – US Rig Count Hits Lowest Level in 68 Years
March 14, 2016March 14, 2016

Baker Hughes released their weekly rig count numbers last Friday (see full report below). We typically don’t report on the weekly ups and downs of rig counts, preferring to check in on a monthly basis to get an idea of the overall trend. But last week’s weekly report was historic, which is why we’re commenting on it now. Baker Hughes began tabulating weekly rig counts 68 years ago. The number of working rigs in the United States last Friday hit 480–the lowest number on record since Baker Hughes began keeping records. While the Marcellus count went up by 3 last week, right now there are only 19 rigs operating in Pennsylvania–less than before the Marcellus boom began and down from the high water mark of 114 rigs operating in 2012. When rigs are operating, it means jobs and economic stimulus for a community and region. It also means landowners get royalties, and that money gets invested and/or spent in a community. The converse is also true: no rig activity, fewer jobs and economic impact. Therefore the number of rigs operating is always of keen interest…
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Antero Resources | Energy Companies | Industrywide Issues | Litigation | Regulation | Statewide WV | West Virginia

WV “Help Out Antero” Bill (re Nuisance Lawsuits) is Dead for 2016
March 9, 2016March 9, 2016

We’ve told you about a bill winding its way through the legislative process in West Virginia that would stop a rash of so-called nuisance lawsuits–primarily against Antero Resources (see WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers). Hundreds of nuisance lawsuits (“they’re too loud, “they leave the lights on too late,” “I don’t like the truck traffic”) have been filed against Antero and other drillers. The lawsuits against Antero have been combined into a class action lawsuit (see More People Pile on Antero, Seek to Join Mass “Nuisance” Lawsuit). It’s a back door way to bring down a company–like a pack of hyenas attacking a giraffe. If the pack is big enough, it can kill its prey. Senate Bill (SB) 508 was meant to stop this insanity, and as of a few weeks ago it was advancing (see 2 Bills Favorable to Drillers Advance in WV Senate – SB 508 & 565). But that was then, this is now. SB 508 is now pretty much dead. A House committee is holding it up and the bill won’t make it to the floor for a vote before the end of WV’s brief 60-day legislative session…
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Industrywide Issues | Ohio | Pennsylvania | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Rig Counts for World, US & Marcellus/Utica Crash in February
March 8, 2016March 8, 2016

Just when you thought the rig count couldn’t possibly get any worse–it does. Baker Hughes released their average rig count data for February yesterday–and it’s not a pretty picture. Worldwide the total number of active rigs in February was 1,018, down 27 from the 1,045 counted in January. But in the U.S., the rig count was 532, down 122 from the 654 counted in January 2016. That’s a huge 19% in a single month. The Marcellus/Utica region was similarly affected. It used to be when rig counts were crashing everywhere else, they held firm or slightly declined in the northeast. No more. In February the Marcellus/Utica lost another 10 rigs, from 52 in January to 42 in February–or a 19% decrease in a single month. Ouch. Below are the full details and charts that tell the story…
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About MDN | Industrywide Issues | Maryland | New York | Ohio | Pennsylvania | Research | Statewide MD | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

5 Key Insights from MDN’s 2015 Databook Vol. 3 – Just Released
March 7, 2016March 18, 2016

MDN recently published Volume 3 of the 2015 Marcellus and Utica Shale Databook. In 103 jam-packed pages you will get the latest information on what’s happening (or not happening) with drilling in the Marcellus/Utica region. Much of the Databook is a series of county maps–one map for each county where there’s permit activity for Marcellus or Utica drilling. Each county map shows a dot for where a permit was issued–along with the name of the driller next to it. The maps also show major natural gas pipelines and compressor stations. Each map offers you a quick, visual way of understanding where drilling is happening, and who’s doing the drilling.

For this new edition, MDN editor Jim Willis spent several weeks compiling and completely revising a directory of frack waste facilities, including the addition of hundreds of injection wells. The 3-volume series is just $350 (single volumes are $225). All three volumes are meant to work together. This is the PERFECT resource for drillers, pipeline companies, law firms, landmen and many others. Below we’ve included sample pages along with 5 key insights from this latest edition of the Databook…
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Energy Companies | Energy Services | EQT Corp | Industrywide Issues | Pipelines | Regulation | Statewide WV | West Virginia

Bill Allowing Surveyors Private Property Access Fails in WV Senate
March 2, 2016March 2, 2016

In June 2014 EQT and NextEra US Gas Assets formed a joint venture to build a 330-mile pipeline from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA to deliver abundant, cheap Marcellus and Utica Shale gas to markets throughout the southeast (see EQT Announces New Marcellus/Utica Pipeline to Southeastern US). The project is called Mountain Valley Pipeline (MVP). A number of West Virginia landowners objected to MVP and would not let surveyors on their property, so MVP (i.e. EQT and NextEra) threatened to sue the landowners claiming eminent domain laws to enter their properties (see WV Landowners Say They’re Bullied by Mountain Valley Pipeline). A month later they did sue (see Mountain Valley Pipeline Sues 103 WV Landowners for Survey Access). But it takes a long time to sue individual landowners in hundreds of cases. So somebody talked to somebody and a bill was introduced in the WV Senate this year, Senate Bill (SB) 596–which would allow surveyors to enter private properties to do survey work as long as a notice was sent by certified mail ahead of time. No doubt the bill was in response to the ongoing, thorny issue of surveying for MVP. The bill passed out of committee with a split vote. But the bill was voted down by the full Senate…
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Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

WV Forced Pooling Bill Headed for 5th Defeat in 6 Years
March 1, 2016March 1, 2016

Although the drilling industry in West Virginia had high hopes that “this was the year” a forced pooling bill would be passed–the latest attempt has once again gone down in flames. Each year the WV legislature meets for a 60-day period at the beginning of the year. Tomorrow (Wednesday) is the 50th day and the last day for a bill to advance out of the house of origin if it’s to be considered by the full legislature–what is known as “crossover day.” House Bill (HB) 4426 is this year’s forced pooling bill, introduced on Feb. 5 (see WV Forced Pooling Bill HB 4426 Introduced – Debate Rages). HB 4426 has until tomorrow to be reported out of committee. It’s not going to happen, meaning it cannot, under the rules of the legislature, be considered for a full vote. The West Virginia Oil and Natural Gas Association sounds rather pessimistic about trying again in the future…
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Industrywide Issues | Statewide WV | Taxation | West Virginia

WV Gov. Tomblin Signs Severance Tax Cut into Law
March 1, 2016March 1, 2016

You may recall our amazement two weeks ago when we reported that West Virginia was on the cusp of passing a bill that will lower the state’s oil/natural gas and coal severance taxes (see WV Senate Passes Bill to Eliminate Part of State Severance Tax). In 2005 when now Gov. Earl Ray Tomblin was then President of the WV Senate, he presided over slapping a new/extra severance tax on oil, gas and coal–for the express purpose of paying down the state’s old workers’ compensation debts. At the time Tomblin promised when the debt was paid off, the tax would end. And by gaw he actually did it. Yesterday Tomblin signed the bill into law. A politician who keeps his word. Rarer than hen’s teeth…
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Energy Services | Industrywide Issues | M3 Midstream | Momentum | Pipelines | Statewide WV | West Virginia | WGL Holdings

M3’s Stonewall Gathering System in WV Gets New Investor/Partner
March 1, 2016March 1, 2016

In April 2015 MDN told you that a section of M3 Midstream’s Appalachia Gathering System (AGS) had been spun off into its own company called Stonewall Gathering System (see M3’s New Stonewall Gathering System Extends Existing AGS in WV). At the time, plans were under way to build out gathering pipelines in West Virginia’s Harrison and Doddridge counties, running through Lewis and into Braxton County where the pipeline will connect with Columbia Transmission’s interstate pipeline. The plans came to fruition and the Stonewall Gathering System was built and now gathers 1 billion cubic feet of Marcellus Shale gas per day (see Construction on WV Stonewall Gather Pipeline Begins, Runs Thru Dec). The project now has a new investor/co-owner. WGL Midstream announced yesterday that it has exercised an option to invest $89 million in the Stonewall Gas Gathering System, representing a 35% ownership stake…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

FERC Says Rover Pipeline as Planned Negatively Impacts Environment
February 22, 2016February 22, 2016

In December 2014 Energy Transfer Partners filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC) for the ET Rover pipeline (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). Rover is an 800-mile, $4.4 billion pipeline that will connect Pennsylvania, West Virginia and Ohio, crossing pretty much the entire state of Ohio heading northwest before entering Michigan and eventually taking a dog-leg into Ontario. In February of 2015, exactly a year ago, ET filed a full application with FERC. Last week FERC responded with a Draft Environmental Impact Statement (DEIS)–and the news was not so good for Rover. FERC found “adverse and significant” impacts from the project as planned and delivered to ET nearly 25 pages of recommendations that ET will need to fix before they get an approval. Is this a fatal blow to Rover? Or just a speed bump? Time will tell…
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