Statewide WV

Lease & Royalty Payments | Statewide WV | West Virginia

Drilling Under the Ohio River in WV – Smart or Dumb?
September 2, 2014September 2, 2014

As MDN reported last week, West Virginia Gov. Earl Ray Tomblin wants to lease the area under the Ohio River that runs through WV for Marcellus and Utica Shale drilling (see State of WV Looks to Lease Area Under Ohio River for Drilling). Tomblin wants a 20% royalty and no deductions (!) from the royalty check for expenses. Other than that, the lease will go to the driller who pays the largest per-acre signing bonus. Will any drillers bother to file a bid if they can’t deduct expenses from royalties? Is Tomblin crazy like a fox with his proposed lease for drilling under the Ohio River? Or is he just crazy? While a former WV Dept. of Environmental Protection (WVDEP) inspector doesn’t call Tomblin crazy, he does think drilling under the Ohio tends to the nutty side…
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Lease & Royalty Payments | Marshall County | Pleasants County | Statewide WV | West Virginia | Wetzel County

State of WV Looks to Lease Area Under Ohio River for Drilling
August 26, 2014August 26, 2014

West Virginia Gov. Earl Ray Tomblin is a pro-drilling Democrat–an unusual occurrence. In fact, Tomblin is so pro-drilling, he’s looking to lease the land underneath the Ohio River for drilling! That’s sure to give the nutters in the WV Sierra Club heartburn. The governor and his Commerce Secretary, Keith Burdette, have published an official notice seeking bids from drillers. Tomblin and Burdette want a signing bonus AND a hefty royalty to boot. Although a target per-acre bonus amount has not been specified, Tomblin has publicly stated he’d like to see a 20% royalty on any such under-the-river leases…
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Energy Companies | Industrywide Issues | Natural Resource Partners | Statewide WV | Supply Chain | West Virginia

NRP Buys VantaCore to Supply Rocks to Marcellus/Utica Drillers
August 25, 2014August 25, 2014

Natural Resource Partners (NRP), a company headquartered in Houston, TX but with it’s operations headquarters in Huntington, WV has its fingers in a lot of pies–including coal companies, concrete companies, and oil and gas companies. NRP has just added yet another aggregates (concrete and rocks) company to its portfolio of companies. NRP purchased VantaCore Partners, a Philadelphia company, mainly because of VantaCore’s operations that supply limestone and base material to oil and gas companies in the Marcellus and Utica shale plays. NRP knows a good thing when it sees it…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | NiSource | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf
August 13, 2014August 13, 2014

Columbia Pipeline Group, a division of NiSource, announced yesterday they have decided to move forward with investing $1.75 billion dollars for two new projects. The first is a pipeline project that will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Hence, the new project is called the Leach Xpress. Yes, the marketers at Columbia could of/should of come up with a better name than “leach” for a pipeline, but we’ll just have to live with it (as we sigh and shake our heads). The 160-mile pipeline will pump abundant, cheap Marcellus and Utica Shale gas to various sales points along the pipeline (interconnecting with other pipelines). But perhaps most importantly, it will pump gas to Leach, and that’s the second major project. There is an existing pipeline from Leach all the way to the Louisiana Gulf Coast. That pipeline is called the Rayne, for Rayne, LA. The Rayne Xpress project will beef up the pipeline with new compressor stations to add an additional 1 billion cubic feet per day of capacity–Marcellus and Utica Shale gas capacity that will flow to the Gulf Coast…
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Industrywide Issues | Pennsylvania | Research | Statewide PA | Statewide WV | West Virginia

EIA: Marcellus Continues to Break Records – Passes 15 Bcf/d Level
August 6, 2014August 6, 2014

The U.S. Energy Information Administration (EIA) ran an article in their Today in Energy online publication yesterday stating the Marcellus Shale region produced, for the first time ever, more than 15 billion cubic feet of natural gas per day (Bcf/d) in July. The Marcellus, located in Pennsylvania and West Virginia, now accounts for a staggering 40% all U.S. shale gas production. Compare that to just four short years ago, in 2010, when the Marcellus produced 2 Bcf/d. The Marcellus is, without a doubt, the most productive shale play for natural gas in the world…
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Industrywide Issues | Landfills | Regulation | Statewide WV | West Virginia | Wetzel County

Wetzel County Tries to Derail New Rules for WV Drill Cuttings
August 4, 2014August 4, 2014

The West Virginia Department of Environmental Protection (WVDEP) is expected to file revisions this week to 33CSR1, the Solid Waste Management Rule, that deal with landfill acceptance of drill cuttings. Until now the state has been operating under “emergency rules” put in place earlier this year. The WVDEP is expected to make those emergency rules permanent as part of of 33CSR1. This issue has been hotly debated in WV since last year when anti-drillers attempted to make a big deal of it (see WV Anti-Drillers Continue to Harp on Drill Cuttings in Landfills). The state legislature, in a special session, passed a bill earlier this year to allow the WVDEP to adopt the emergency rules until final rules are enacted after a process of public hearings (see WV Drill Cuttings in Landfill Bill Passes in Record Time). At the final public hearing in Charleston last week, the Wetzel County Solid Waste Authority submitted two studies they funded on this issue that they say raises troubling questions about the proposed “final” rules…
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Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

EQT Midstream: 2 Major Pipeline Projects Advance, 1 Doesn’t
July 25, 2014July 25, 2014

In addition to yesterday’s big news that EQT has decided to “take the plunge” and drill what is thought to be the deepest Utica Shale well yet, in Greene County, PA (see MDN’s related story today), EQT also announced yesterday their plans for their midstream operations over the coming months. CEO David Porges said EQT Midstream will spend “over $350 million” on midstream projects in 2014. The company has three major pipeline/midstream projects on the books. Porges said two of those projects are advancing while one is going “on the back burner”…
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Energy Companies | Gastar Exploration | Industrywide Issues | Pennsylvania | Reserves (Proved and Unproved) | Statewide PA | Statewide WV | West Virginia

Gastar Proved Reserves Up 43% – 3/4 of it in the Marcellus
July 22, 2014July 22, 2014

Gastar Exploration, a major driller in the Marcellus/Utica, posted a mid-year update on their proved (and unproved) reserves yesterday. When you lump all hydrocarbons together–natural gas, oil and condensate and natural gas liquids (NGLs)–Gastar’s estimated proved reserves totaled 78.0 million barrels of oil equivalent (BOE) as of June 30th. That’s up an eye-popping 43% over the same time last year. Where is all that gas coming from? Three-fourths of it is in the Marcellus/Utica, and one-fourth is in the Mississippi Lime/Woodford Shale in Oklahoma…
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Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Statewide WV | Supply Chain | West Virginia

Primoris Wins Another Round of Pipeline Work in PA/WV Marcellus
July 22, 2014July 22, 2014

A very short and light-on-specifics press release from Primoris Services Corporation says the pipeline building company, based in Dallas, TX, has just secured $80 million worth of contracts to build pipelines for “three major midstream operators” in the PA and WV Marcellus region. You may recall MDN also told you about several Primoris Marcellus Shale projects in June 2013 (see Rockford/Primoris Lands $92M in Marcellus Pipeline Contracts). Here’s the announcement of the latest round of work won by Primoris:
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About MDN | MDN Resources | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Baker Hughes Announces 2Q14 Well Count – What is a Well Count?
July 14, 2014July 14, 2014

No doubt you’ve heard of the Baker Hughes rig count–the number of drilling rigs currently in use to drill oil and gas wells. Baker Hughes has provided that data for, like, forever! Used to be you could lay a ruler down and determine whether supplies of natural gas would increase or decrease based on the number of drilling rigs in use. That went out the door a few years ago with shale wells. Production numbers are no longer closely tied to the rig count. So Baker Hughes invented a new metric to help: well counts. They reported last week that well counts are up 5% in the second quarter of 2014 over 2013. Wait, what’s a well count? And why is it important?…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Statewide WV | West Virginia

3 New (Short) Pipelines from GreenHunter in Tri-state Area
June 30, 2014June 30, 2014

GreenHunter Resources, a subsidiary of Magnum Hunter Resources, is making small moves to compete with MarkWest Energy and Williams. Today, GreenHunter announced they are building (in a partnership with Major Pipeline LLC) three new, short pipelines. The three pipelines represent a total of 34 miles of new pipeline, when added together. One pipeline each will be dedicated to brine/wastewater, fresh water, and condensate. Two of the pipelines will originate in southwestern PA and one in WV. All of them will connect with one of GreenHunter’s barge terminals on the Ohio River. Also in the mix is a condensate “splitter”…
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Lease & Royalty Payments | Statewide WV | West Virginia

WV Sees Rash of “Top Leases” for Shale Drilling
June 30, 2014June 30, 2014

Landowners in West Virginia who leased their property but for whom there has not been drilling may have a new source of income. According to an article in the Wheeling Intelligencer / News-Register, some companies are now offering what’s called a “top lease” to landowners without drilling. What, exactly, is a top lease?…
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Health Impacts | Industrywide Issues | Research | Statewide WV | West Virginia

WVU: 10 Ways to Reduce Enviro/Health Impacts from Shale Drilling
June 30, 2014June 30, 2014

Researchers from West Virginia University have just published a new paper aimed at reducing environmental and health risks from Marcellus Shale drilling. The paper, titled “Practical measures for reducing the risk of environmental contamination in shale energy production,” is published in the Journal Environmental Sciences: Processes & Impacts and contains 10 specific recommendations that drillers can adopt to make shale drilling safer and less impactful…
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Education | Industrywide Issues | Jobs | Statewide WV | West Virginia

2 Dozen Drilling Techs from WV Program Now Make $70K/Year!
June 18, 2014June 18, 2014

Want a good job that pays big money but don’t want to “waste time” on an engineering degree? Listen up! West Virginia’s Community and Technical College Chancellor Jim Skidmore recently told state lawmakers that a program offered at two community colleges–Pierpont Community and Technical College in Fairmont and West Virginia Northern Community College in Wheeling–has just graduated two dozen students. Each student received a certificate or associates degree, and each student got a job making an average $70,000 per year to start. Has that got your attention?…
Read More “2 Dozen Drilling Techs from WV Program Now Make $70K/Year!”
Industrywide Issues | Regulation | Statewide WV | West Virginia

Attention WV Drillers: Time to Register Your Above Ground Tanks
June 11, 2014June 11, 2014

MDN previously reported on the new West Virginia law that regulates most above ground storage tanks. The new law was passed after an accident with tanks containing chemicals from coal mining leaked and temporarily polluted the drinking water for some 300,000 West Virginians (see Coal Industry Blamed for West Virginia Chemical Spill). Although shale drilling had nothing to do with the spill, the new regulation passed earlier this year will greatly affect WV drillers (see Impact of WV’s New Chemical Tank Law on Marcellus Drillers). The new law went into effect last week and the WV Dept. of Environmental Protection announced above ground tank registration is now open…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Landfills | Statewide WV | Wastewater | West Virginia

WV Reporter’s Dictation from Anti-Drilling Senator is Radioactive
June 9, 2014June 9, 2014

We’ve come to expect reporters from the mainstream media to lie and endlessly repeat debunked myths in an effort to throw as much “stuff” against the proverbial wall to see what will stick, and to confuse readers. But it’s not often a reporter from a smaller West Virginia newspaper turns in an “article” so completely wrong it’s breathtaking, as John Sheely from the Martinsburg Journal News has just done. But then Sheely was just “reporting” (cheerleading? snookered by?) the load of bull being offered by WV Senator Donald Cookman (D-Hamshire)…
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