Statewide WV

Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Southwestern Energy | Statewide WV | West Virginia

Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre
December 29, 2014December 29, 2014

Last week MDN told you that Chesapeake Energy closed on a deal to sell some 413,000 Marcellus Shale acres, mostly in West Virginia (some in Pennsylvania) to Southwestern Energy (see Chesapeake Using $1B from Southwestern Deal to Buy Back Stock). The deal ended up being worth $4.975 billion, discounted from the original $5.375 billion because Southwestern agreed not to sue Chessy for “title defects” when and should that occur. As we said at the time, we’re not sure if a $400 million discount is a good deal or not in the case some of the titles to leases aren’t free and clear. But the bigger story, in our humble opinion, is this: Chesapeake picked up some of those leases that originally paid landowners as little as $5 per acre and as much as $5,000 per acre. They just turned around and sold those same leases for $12,000 an acre. That made corporate raider Carl Icahn, Geppetto pulling the strings at Chesapeake, really really happy…
Read More “Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre”
Energy Services | FirstEnergy | Statewide WV | West Virginia

FirstEnergy Investing $100M in Electric Projects for WV Marcellus
December 29, 2014December 29, 2014

FirstEnergy, headquartered in Akron, Ohio, is the parent of Mon Power, an electric utility serving 385,000 customers in 34 West Virginia counties. FirstEnergy announced last week they’re investing $100 million in new electric transmission projects to service the growing Marcellus and Utica Shale industry in WV. The projects include new high voltage power transmission lines and substations to serve natural gas processing plants (and other gas operations) in the region. As a consequence, not only will the Marcellus industry benefit, so too will local electric customers in WV…
Read More “FirstEnergy Investing $100M in Electric Projects for WV Marcellus”
Chesapeake Energy | Energy Companies | Equinor/Statoil | Pennsylvania | Southwestern Energy | Statewide PA | Statewide WV | West Virginia

Statoil Reduces Marcellus Holdings in $394M Deal with Southwestern
December 23, 2014December 23, 2014

Time to follow the bouncing ball–this is a tad complicated, but we’ll do our best to explain it. In 2008, Chesapeake Energy (under then-CEO Aubrey McClendon) took on a “silent” investing partner for 600,000 net acres in the Marcellus of West Virginia and southwest Pennsylvania. The non-operating partner for the acreage was Norwegian company Statoil, with a 32.5% interest in the acreage. Statoil put up buckets of money and Chessy did the drilling. Fast forward to October of this year. Chesapeake cut a deal to sell most of that acreage–some 413,000 acres with 435 drilled wells (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). The buyer is Southwestern Energy. In order for the deal to close, Statoil has to sign on. Today, Statoil announced they have cut a deal with Southwestern to reduce Statoil’s now 29% interest in the acreage down to a 23% interest, in return for a $394 million check from Southwestern…
Read More “Statoil Reduces Marcellus Holdings in $394M Deal with Southwestern”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Statewide WV | West Virginia

WV’s Top Wheeling Water Warrior Hangs up Her Cape
December 19, 2014December 19, 2014

It is a sad day. The proud Wheeling Water Warriors–with their super hero capes flapping in the breeze–are now reduced in rank by one. The top Warrior, the woman who started it all–Robin Mahonen–is hanging up her cape and leaving West Virginia. You may recall MDN talking about the Warriors, formed in 2013 to oppose a proposed frack wastewater treatment/barge facility in Wheeling (see “Wheeling Water Warriors” Oppose GreenHunter Wastewater Facility). We’ve had some fun poking fun at this group of anti-drilling nutters over the past year and a half (see our stories here). It seems that WV Democrat Gov. Earl Ray Tomblin’s plan to drill under the Ohio River was the last straw for Ms. Mahonen, who sent the following “open letter” to the governor to protest drilling under the river and to let Tomblin know why she’s leaving the state…
Read More “WV’s Top Wheeling Water Warrior Hangs up Her Cape”
Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | Statewide WV | West Virginia

Dominion Fined $55K for Run-off in WV Creeks
December 17, 2014December 17, 2014

Dominion Transmission has agreed to pay $55,470 in fines for violating the West Virginia Water Pollution Control Act. The fines are the result of WV Dept. of Environmental Protection (DEP) investigations that started in November of 2012. The DEP investigated “slips” or slopes restored after Dominion dug trenches to lay pipeline. The slopes were not restored properly and sediment and erosion ended up in area creeks. Dominion is required to fix the creeks and pay the fine…
Read More “Dominion Fined $55K for Run-off in WV Creeks”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Ohio | Statewide OH | Statewide WV | West Virginia

Ohio River Valley Anti-Drilling Groups Meet in WV to Plot Strategy
December 12, 2014December 12, 2014

Extremist so-called environmental groups can’t get much traction on their own, so increasingly national groups–like the odious Food & Water Watch and infamous Sierra Clubbers–form alliances and umbrella groups. It makes it look like that there are millions and millions who oppose shale drilling (when such is not the case). What works for the big guys ought to work for the little guys too, right? The trend we see is for small fringe groups to also throw in their lot together (strength in numbers). A group of tiny fringe enviro groups in the Ohio River Valley (WV and OH) recently got together in Huntington, WV to swap lies and collude on their next attack strategies…
Read More “Ohio River Valley Anti-Drilling Groups Meet in WV to Plot Strategy”
Anadarko | Chesapeake Energy | Citrus | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Regulation | Statewide PA | Statewide WV | West Virginia

DOL Action: Several Marcellus Drillers Pay $4.5M in Back Wages
December 10, 2014December 10, 2014

In a multi-year so-called “investigation” that cost more money that was “recovered,” the U.S. Dept. of Labor (DOL) announced yesterday they’ve forced Chesapeake Energy, Citrus Energy and Anadarko Petroleum (and perhaps others) to pay $4.5 million in back wages to some 5,300 oil and gas workers in Pennsylvania and West Virginia. The apparent “violation” is that these workers, working for subcontractors (not directly for the energy companies themselves), in some cases worked more than 40 hours in a given week but didn’t get time-and-a-half wages. We’re certainly not against playing by the rules, but it sure seems like utter folly to hype this as some sort of victory by Obama’s Labor Department–to work for more than two years and come up with a thimble-full of violations and carp and complain about how fractured the energy industry is–the same industry that, because of all those many subcontractors, has generated several hundred thousands new jobs in PA & WV that wouldn’t have been there otherwise. Here’s the press release by the DOL…
Read More “DOL Action: Several Marcellus Drillers Pay $4.5M in Back Wages”
Energy Companies | Gastar Exploration | Lease & Royalty Payments | Statewide WV | West Virginia

WV Looks to Lease More Ohio River, Other State Land for Drilling
December 3, 2014December 3, 2014

West Virginia is interested in leasing more under-the-water land (and under other state-owned land) for shale drilling. You may recall that Gastar recently had the winning bid to drill under 232 acres of the Ohio River as it flows through Marshall and Wetzel counties (see Gastar Wins Lease to Drill Under Ohio River in WV). WV is getting $3,500 per acre and a 20% royalty on gas produced from Gastar–a nifty $812,000 check just for signing the lease, money that goes into the coffers of the state. They like that money and they want more of it–and Gastar is interested in drilling under more WV-owned land…
Read More “WV Looks to Lease More Ohio River, Other State Land for Drilling”
Dominion Energy | Economic Impact | Energy Services | Industrywide Issues | Jobs | Pipelines | Statewide WV | West Virginia

Atlantic Coast Pipeline: $25M/Yr in Prop. Tax, $70M/Yr Econ Impact
December 3, 2014December 3, 2014

The arguments by anti-drillers against pipeline projects, like Dominion’s Atlantic Coast Pipeline which is slated to run from West Virginia to North Carolina, usually amount to this: “There’s no long-term benefit to the communities through which the pipeline runs. We have to ‘put up’ with the darned thing, but we see no benefit from it.” Benefit meaning money–other than a one-time fee paid to landowners through whose land it runs. Dominion is attempting to counter those criticisms by pointing out that once the Atlantic Coast Pipeline is fully operational, it will be paying in excess of $25 million per year to counties and local municipalities in property taxes (see the list below). During construction, the pipeline will generate nearly half a billion dollars per year in economic impact in WV, VA and NC. Once the construction phase is over, through permanent jobs created and associated ongoing operating costs for the pipeline, Dominion projects the pipeline will spur nearly $70 million per year of ongoing economic activity (see full report below)…
Read More “Atlantic Coast Pipeline: $25M/Yr in Prop. Tax, $70M/Yr Econ Impact”
American Energy Partners | Energy Companies | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Aubrey McClendon Raises Another $500M for More Leases
December 2, 2014December 2, 2014

Low oil prices don’t seem to be affecting Aubrey McClendon’s ability to raise cash. He’s just landed another half a billion dollars, which he plans to use to lease more land in the Utica, Marcellus and two other shale plays. McClendon and his American Energy Partners is also looking for new employees. Hey Chesapeake workers–tired of answering to Carl Icahn and seeing your friends axed from the payroll (wondering if you’re next)? Send your resume to Aubrey! Here’s the AEP announcement from yesterday…
Read More “Aubrey McClendon Raises Another $500M for More Leases”
Industrywide Issues | Marshall County | Ohio County | Statewide WV | Wastewater | West Virginia

New Brine Processing Plant Coming to Panhandle of WV
December 2, 2014December 2, 2014

The new owners of what was the AOP Clearwater brine processing plant in Marion County, WV (renamed to Fairmont Brine Processing) plan to grow their successful operation by opening a much larger, second plant in Wheeling, WV. The last time MDN wrote about the AOP Clearwater plant was in March 2010 (see AOP Clearwater Plant in WV a Big Success in Treating Marcellus Shale Wastewater). Apparently the “big success” didn’t last for AOP. An engineering firm was called in to evaluate the plant and told them they would need $10 million in upgrades, so AOP Clearwater cleared out. The guy who owned the engineering firm believed in the project, got some investors and bought the plant himself. Dave Moniot, CEO of both Venture Engineering and now Fairmont Brine Processing, turned the plant around. He’s now using that success to expand with a second plant in Wheeling…
Read More “New Brine Processing Plant Coming to Panhandle of WV”
CNG/LNG | Industrywide Issues | Marshall County | Ohio County | Statewide WV | West Virginia

New LNG Plant for Drillers Coming to Panhandle of WV
December 2, 2014December 2, 2014

LNG (liquefied natural gas) use is beginning to pick up in the Marcellus/Utica. Demand for LNG is increasing as drillers shift away from using diesel fuel to power rigs and instead use field gas, CNG (compressed natural gas) and LNG. Sensing an opporunity to serve drillers in the tri-state area of PA, WV and OH, Dave Moniot, CEO of Fairmont Brine Processing, who is also building a new brine plant in Wheeling (see today’s related story), is investing in an LNG plant in the Wheeling area–likely at the same site where he’s building a new brine processing plant. Moniot is partnering with Plum Energy to build the new plant under the name of TriState LNG…
Read More “New LNG Plant for Drillers Coming to Panhandle of WV”
Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Statewide WV | West Virginia

So-Called ‘Pipeline Air Force’ to Track Dominion Pipeline in WV
November 26, 2014November 26, 2014

Just when you think you’ve heard it all, along comes another bizarre twist from those who oppose shale drilling. As we’ve reported in a number of stories, Dominion is planning to build a 550-mile, $5 billion natural gas pipeline from West Virginia through Virginia and into North Carolina. It’s called the Atlantic Coast Pipeline project and the Federal Energy Regulatory Commission is now evaluating it (see Dominion Asks FERC to Start Environmental Review of SE Pipeline). Apparently a group of people who oppose the pipeline plan to keep an eye on it as it’s built (they must figure it’s a foregone conclusion that it will get built). They’ve somehow gotten ahold of three airplanes that they will use to spy from the sky as the pipeline gets built through the mountains of West Virginia…
Read More “So-Called ‘Pipeline Air Force’ to Track Dominion Pipeline in WV”
Pennsylvania | Statewide PA | Statewide WV | West Virginia

Ben Franklin Shale Gas Ctr Announces $100K Contest for Innovators
November 25, 2014November 25, 2014

This is our annual “calling all researchers, entrepreneurs, or small businesses located in PA and WV who have innovative products or services for the Marcellus Shale industry.” If that fits you, you should consider entering the Fourth Annual Shale Gas Innovation Contest that will award $100,000 in prizes ($25K each) to four worthy winners. It may be just the shot you need to launch your product or service to success. The deadline to enter is Feb. 1, 2015. Here’s the announcement from the Ben Franklin Shale Gas Innovation and Commercialization Center…
Read More “Ben Franklin Shale Gas Ctr Announces $100K Contest for Innovators”
Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Regency Energy Partners | Statewide OH | Statewide PA | Statewide WV | Sunoco Logistics | West Virginia

Sunoco Logistics, Regency Energy Presentations from Analyst Day
November 24, 2014November 24, 2014

Last week both Regency Energy Partners, which purchased PVR Partners a little over a year ago (PVR having a major footprint in the Marcellus/Utica), along with Sunoco Logistics, another major midstream player in the northeast, participated in an analyst day last week at Ritz-Carlton in Dallas. While we don’t have a transcript, we do have the PowerPoint slide decks from both companies. And what we find on some of those slides is illuminating…
Read More “Sunoco Logistics, Regency Energy Presentations from Analyst Day”
Coterra Energy (Cabot O&G) | Energy Companies | Pennsylvania | Statewide WV | Susquehanna County | West Virginia | Wood County

Full Circle for Cabot O&G: From WV to PA and Back Again
November 20, 2014November 20, 2014

On Monday, MDN highlighted a pair of stories from West Virginia in which we noted that Cabot Oil & Gas, a Texas-based company that (so far) has concentrated its Marcellus Shale drilling in Susquehanna County, PA, had drilled and plugged a well in West Virginia that seems to be aimed at the Utica Shale (and/or Marcellus) in that state (see Cabot’s Wood County, WV Utica Well – Vertical or Horizontal Miss?). Cabot is one of the most prolific producers of Marcellus Shale gas, producing an incredible 2 billion cubic feet per day of natural gas from Susquehanna, a single county in northeast PA (see Cabot O&G 3Q14: A Wandering Eye + Welcome to the 2 Bcf/d Club!). It piqued our interest that Cabot may be nosing around a “new” area (for them) for horizontal shale drilling, so we asked George Stark, Cabot spokesman, about it. He called us yesterday to elucidate…
Read More “Full Circle for Cabot O&G: From WV to PA and Back Again”