Statewide WV

Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide WV | West Virginia

Electronic Permit Filing for Marcellus Drilling Coming Soon in WV
October 21, 2013October 21, 2013

In December 2011 a special session of the West Virginia legislature took up and passed a new Marcellus drilling bill in record time–four days flat–although in reality it took most of 2011 to prepare the legislation. The WV Senate passed the “Horizontal Well Act” 33-0 and the House passed it 92-5. Gov. Earl Ray Tomblin signed it immediately. (For a summary of what’s in the “new” law, see WV Has New Marcellus Drilling Law in Record Time).

It’s now been nearly two years since then, time for a status report. WV Dept. of Environmental Protection (WVDEP) spokesman Tom Aluise says the new law is paying off. Aluise talked about a new electronic permit filing system on the way, and he identifies the top five counties in WV with Marcellus wells…
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Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

I’m Hooked on an (Ethane) Feeling, High on (Cracker) Believing
October 16, 2013October 16, 2013

Will the northeast ever get an ethane cracker plant to handle the massive amount of ethane being produced in wet gas areas of western PA, eastern OH and the panhandle of WV? Some people think so (MDN among them), although each year that goes by without a cracker it seems less likely because of new ethane and NGL pipelines being built to haul ethane out of the northeast. Still, people “in the know” say they have a feeling. Kind of reminds us of the old BJ Thomas song, “Hooked on a Feeling.”

Yesterday at the Wheeling (WV) Economic Outlook Conference, Don Rigby, executive director of the Wheeling-based Regional Economic Development Partnership, was the latest “in the know” person to say he’s hooked a cracker feeling…
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Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Unexpected News in Latest BH Rig Counts – 42% Jump in Rigs in…
October 15, 2013October 15, 2013

From time to time MDN takes a look at the Baker Hughes “rig count”–the number of rotary drilling rigs operating in Pennsylvania, Ohio and West Virginia. The “received wisdom” in the drilling industry that is as goes the rig count, so goes production numbers. Used to be if you saw a decrease in the number of rigs in a given geography, maybe 6-12 months later you would see a corresponding decrease in production from that area. No more. Shale drilling has changed all of that. Nowadays the rig counts go down, and production (in PA anyway), doubles! Why? A lot of wells previously drilled are still waiting to be hooked up to pipelines and begin their production. And shale well production is different from conventional well production. The once simple measurement of more rigs/more production (and the reverse) no longer holds completely true.

Rig counts are still, however, a useful metric to track. And sometimes they reveal something surprising, as MDN found out today in reviewing the latest numbers. Rig counts are an indication of where there is an increase (or decrease) in new drilling activity. Landowners eager to have a well drilled on their property can use rig counts to gauge how quickly (or not) that may happen. Supply chain companies that sell services to drillers are also interested in tracking rig counts. So what, exactly, did MDN find that surprised us? The big surprise is where rig counts have recently spiked–significantly. It’s in a Marcellus/Utica state you may not expect…
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Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

17 State Chambers of Commerce to EPA: States Regulate Fracking
October 9, 2013October 9, 2013

On Sept. 20, 17 state Chambers of Commerce sent a joint letter to President Obama’s new EPA Administrator, Gina McCarthy. They opened the letter (full copy below) with a nice greeting and a congratulations on her recent confirmation as administrator, and then immediately launched into a statement (not really a request) that tells her to, in so many words, keep her mitts off fracking. That is, leave the regulation of fracking where it properly and Constitutionally belongs–with the individual states.

The federal government does not have a Constitutional role in regulating fracking and the Chambers of Commerce, representing 34% of all states and from the biggest oil and gas producing states in the Union–want to keep it that way. Not surprisingly, among the signatories are the Pennsylvania, Ohio and West Virginia Chambers of Commerce…
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Economic Impact | Ethane | Industrywide Issues | Processing Plants | Statewide WV | West Virginia

WV Gov Going to Europe to Find Him a Cracker
October 2, 2013October 2, 2013

West Virginia Gov. Earl Ray Tomblin is nothing if not persistent. For several years, the governor and his trusty Commerce Secretary Keith Burdette have been talking about landing an ethane cracker plant for WV (see WV Gov. Tomblin Beats the Ethane Cracker Drum Once Again). MDN is pulling for them! We have been for a long time. And it seems every few months we see a story along the lines of, “Just hold on, it’s a comin'”. But it never seems to.

So if a cracker investment is not coming to WV, Gov. Tomblin is going out to find it! He’s heading off to Spain, France, Germany, Switzerland and Italy on a European ~~vacation~~ trade mission in October to thank those countries for investing in WV, and to invite them to invest more. In particular, he’d like someone to invest in a cracker plant…
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Forced Pooling | Industrywide Issues | Statewide WV | West Virginia

WV Legislators Hear Presentation on Forced Pooling from SORO
September 25, 2013September 25, 2013

Forced pooling is once again being considered by West Virginia legislators. In the past few years forced pooling (which is sometimes called “lease pooling” or “lease integration” or any of several other terms) has been a non-starter in WV. Each time it comes up for consideration it goes nowhere–no votes, no nothing. So when a committee of WV legislators ask for a briefing on the topic–it’s noteworthy. It’s also very likely to come up again in the 2014 general session…
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Industrywide Issues | Jobs | Statewide WV | West Virginia

What’s the Average Weekly Salary for WV’s Marcellus Workers?
September 23, 2013September 23, 2013

An article from West Virginia does an excellent job of summarizing the wages of the average gas field worker employed during the drilling/extraction phase. WorkForce West Virginia tracks how many workers are employed full-time in various counties in WV in the gas & oil business. If you average it out, workers (mostly manual laborers) are making anywhere from an average $537 per week (in Roane County) to $1,430 per week (in Doddridge County). Guess which county we’d rather be working in?

Here’s a county by county rundown:
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Research | Statewide WV | West Virginia

WV Group Seeks Volunteers to Sample Rivers/Streams Near Fracking
September 17, 2013September 17, 2013

Increasingly MDN receives a lot of email from both pro- and anti-drilling organizations and groups. We select only those items that we believe would be of interest to you. Below is one such item. A few days ago we received a forwarded email from someone working with the Three Rivers QUEST (3RQ), a water monitoring program managed by the WV Water Research Institute. West Virginia University also has some sort of involvement, according to the 3RQ website.

3RQ is looking for volunteers for their water monitoring program in WV–people to take water samples from rivers and streams “down wind” (or rather downstream) from active shale drilling sites. We fully expect most people who participate in the program are anti-drilling in philosophy. However, good science is good science. MDN believes it would be a good will gesture for pro-drillers to also volunteer…
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Earthquakes | Hydraulic Fracturing | Industrywide Issues | Statewide WV | West Virginia

Seismologist: Fracking Does NOT Cause Earthquakes
September 10, 2013September 10, 2013

$fracking & earthquakes$ Finally, an AP reporter who listens and accurately reports the news. Wait, has hell frozen over? When AP starts reporting accurately, we become suspicious. But let’s not become distracted at this unusual turn of events…

On the first day of a two-day conference being hosted by West Virginia University on Marcellus Shale drilling in Morgantown, a seismologist from the University of Texas had the guts to set the record straight. He said: (1) Fracking does not cause earthquakes; (2) injection wells that dispose of fracking wastewater sometimes cause earthquakes; and (3) earthquakes triggered by injection wells are rare–extremely rare. And the AP reported it–accurately. Huh…
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Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

Charleston Gazette Editorial: Drill Washington National Forest
September 10, 2013September 10, 2013

The debate continues to rage over whether or not to allow shale drilling in the George Washington National Forest. Later this month, the U.S. Forest Service will decide whether or not to allow it (see WashPo Takes Aim at Fracking in the George Washington Natl Forest). Counter to the claptrap published in the Washington Post a few days ago, the Charleston Gazette provides powerful arguments in favor of drilling in a tiny sliver (12,000 acres out of 2 million) of the Washington Forest in today’s editorial.

One gem from the Gazette: The “pristine” Jefferson National Forest with it’s own “leafy cradles” and “gurgling brooks” sits adjacent to and south of the Washington National Forest–in the very same watershed. The Jefferson Forest has had active conventional (vertical) gas drilling for decades–with absolutely no problems…
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Industrywide Issues | Statewide WV | Taxation | West Virginia

WV Lawmaker Trip to ND to Study Drill Tax Cost $25K
September 9, 2013September 9, 2013

A few weeks ago MDN told you about 18 West Virginia legislators who were due to fly to North Dakota for an overnighter to study that states Legacy Fund–money set aside by ND from shale drilling taxes and fees to benefit the state in the future. Some WV legislators want to set up a similar fund, called a Future Fund, and they figured the best way to do so was to conduct a junket to ND for some prominent (and not yet convinced) lawmakers. MDN pointed out it would be a heck of a lot cheaper to fly a couple of ND officials to WV than the other way around (see 18 WV Lawmakers Flying to ND for a $20K Overnighter on Drill Tax).

It seems the Charleston Gazette agrees with MDN. They also say it was 19 legislators (not 18) that went on the trip, they stayed for two nights not one, and they got a $55 per-diem for meals. Total bill estimated to be something like $25K. Sure pays to be a WV legislator…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

WashPo Takes Aim at Fracking in the George Washington Natl Forest
September 9, 2013September 9, 2013

A “reporter” with the appropriate last name of “Fears” has authored a masterful piece of propaganda for the Washington Post on the “looming” decision about whether or not the U.S. Forest Service should allow shale drilling in a teeny tiny part of the 2 million acre George Washington National Forest that covers parts of Virginia and West Virginia.

All you need to know about the viewpoint of the so-called article (really just more anti-drilling propaganda) can be found in the first two sentences…
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Industrywide Issues | Litigation | Preston County | Statewide WV | West Virginia

Landmen & Drillers: 6 Steps to Keep a Lease Out of WV Court
September 5, 2013September 5, 2013

The JDSupra Law News website reports on a West Virginia court case that may have far-reaching consequences for landowners in WV and for landmen and drillers operating in the state. The case is called Barber v. Magnum Land Services, LLC, a recent case filed in Preston County, WV, now transferred to the Northern District. The Barber case, according to JDSupra, has the potential to settle many other outstanding cases along the same lines and is being used as a proxy and precedent for other cases.

The Barber case alleges a landman (from Magnum Land Services) pressured a landowner into signing a lease to allow drilling with the statement that if the landowner did not sign, their land would be drilled under anyway and they would not receive any royalties–a veiled (and inaccurate) reference to “the law of capture” in WV. The landman also did not make the landowner aware of other signed offers, withholding important information about the potential value of the lease. The plaintiffs in Barber are using several legal arguments to nullify the lease. We won’t delve into the technicalities of the case (click below to read about it on the JDSupra website). However, JDSupra’s conclusion offers six steps landmen and drillers should adopt in the way they interact with landowners–steps that will help keep their leases out of court:
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Industrywide Issues | Jobs | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica Industry Looking to Hire More Locals
September 3, 2013September 3, 2013

Do you live in Pennsylvania, Ohio or West Virginia (or perhaps the Southern Tier of sad New York) and want a job working for the growing shale drilling industry? According to The Motley Fool, your chances of landing a job in the Marcellus/Utica industry have never been better. The Fool even has a few suggestions of companies looking to hire…
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Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia

WV Gov. Tomblin Beats the Ethane Cracker Drum Once Again
August 29, 2013August 29, 2013

At a business summit yesterday at the Greenbrier Resort in West Virginia, Gov. Earl Ray Tomblin once again voiced his opinion that WV will have an ethane cracker plant of its own in the near future and that such a plant is needed to keep jobs in WV. He went a bit further than we’ve heard before and said WV has the right to expect a partnership between drillers and manufacturers to process WV ethane and other natural gas liquids (NGLs) in WV. According to Tomblin, his administration is burning the midnight oil to make a WV ethane cracker a reality…
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Pennsylvania | Statewide PA | Statewide WV | West Virginia

Marcellus Reshuffle? EIA Says WV/SWPA Luring Rigs Away from NEPA
August 27, 2013August 27, 2013

According to the brains at the U.S. Energy Information Administration (EIA)–and we say “brains” in a very complimentary way–the northern panhandle of West Virginia and southwestern Pennsylvania together have formed an integrated “wet gas” drilling region that is luring drilling rigs away from the highly productive dry gas area of northeastern PA. Here is their analysis and reasoning, along with some nifty charts:
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