Statewide WV

Air Quality | Hydraulic Fracturing | Industrywide Issues | Regulation | Research | Statewide WV | West Virginia

Did WVDEP Ignore It’s Own Research on Shale Well Air Pollution?
August 26, 2013August 26, 2013

The West Virginia Natural Gas Horizontal Well Control Act, passed and signed into law in December 2011, directed the WV Dept. of Environment Protection (WVDEP) to conduct three studies. The third and final study on air quality was released in June (see WVDEP Releases Study on Air Quality Impacts of Shale Drilling). The WVDEP said based on the data they received, no new regulations are required to control air pollution near drilling operations. However, a West Virginia University professor that oversaw the raw report given to the WVDEP disagrees with their assessment.

Dr. Michael McCawley, chairman of the Department of Occupational & Environmental Health Sciences in the School of Public Health at WVU, said he thinks a 625-foot “setback” is not far enough (in some cases) and that air emissions from Marcellus and Utica shale drilling need more regulation…
Read More “Did WVDEP Ignore It’s Own Research on Shale Well Air Pollution?”
Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

CSSD Says First Marcellus Certifications Coming Later this Year
August 23, 2013August 23, 2013

MDN previously told you about a new, independent group–a cooperative between the drilling industry and environmentalists–called the Center for Sustainable Shale Development, or CSSD (see Important: Drillers & Enviros Form New Group, Launch Cert Program). Members of the group on both sides have taken heat for working together to create very strict standards for Marcellus and Utica Shale drillers (see Eco Groups Shun EDF over Membership in Sustainable Shale Center).

The CSSD created a list of 15 standards they want drillers to conform to–some of the standards very costly, especially to small drillers. The group is moving forward with their plans and intends to begin certifying drillers “later this year”…
Read More “CSSD Says First Marcellus Certifications Coming Later this Year”
Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | Supply Chain | West Virginia

MSC Releases Annual Marcellus Job/Workforce Survey
August 22, 2013August 22, 2013

What types of companies in the Marcellus/Utica Shale region are hiring? What types of jobs are they hiring for? And where are they hiring? Those are just some of the answers you’ll find in the latest annual membership survey from the Marcellus Shale Coalition (copy of survey results embedded below). In addition to those questions, the survey also addresses which functions and services drillers outsourced (pay attention supply chain companies!), and which positions were hardest to fill (pay attention job seekers!).

The press release announcing and summarizing the survey results:
Read More “MSC Releases Annual Marcellus Job/Workforce Survey”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pipelines | Ritchie County | Statewide WV | Tyler County | West Virginia

More on that Half Billion Dollar Antero Water Pipeline in WV
August 20, 2013August 20, 2013

We have a few more helpful details on Antero’s project to build an 80-mile water pipeline from the Ohio River to Tyler and Ritchie counties in West Virginia. The project has been approved and will cost Antero $525 million (that’s over half a billion). However, when complete, the new pipeline and other infrastructure Antero has and is building will reduce their cost to drill a well by $600,000. They plan to drill some 30% of their wells this year using water from this project, and 90% of the wells they drill in 2014.

More information about the project, which Antero has been tight-lipped about:
Read More “More on that Half Billion Dollar Antero Water Pipeline in WV”
Industrywide Issues | Statewide WV | Taxation | West Virginia

18 WV Lawmakers Flying to ND for a $20K Overnighter on Drill Tax
August 19, 2013August 19, 2013

West Virginia Senate President Jeff Kessler really really wants the WV legislature to set up a rainy day fund or “WV Future Fund” with some of the severance tax money raised from shale drilling in the state, so this week he’s flying himself and 17 other state lawmakers to North Dakota for an overnighter to hear from ND leaders about how their “Legacy Fund” has worked in that state. Total cost to WV taxpayers: $18,000 – $20,000.

Er, why are they not flying one or two ND officials to Wild, Wonderful WV to make the presentation–for $2,000? Best not to ask such questions of the political ruling class…
Read More “18 WV Lawmakers Flying to ND for a $20K Overnighter on Drill Tax”
Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Astonishing: Marcellus Gas Production Up Estimated 50% Over 2012
August 15, 2013August 15, 2013

According to Bentek Energy, Marcellus Shale gas production is up 50% compared with the same time last year–much more than energy experts had predicted. And apparently there’s no end in sight.

Bentek also says Marcellus production is so prolific it’s “actually starting to displace” natural gas production from the Gulf of Mexico…
Read More “Astonishing: Marcellus Gas Production Up Estimated 50% Over 2012”
Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

July Permits Issued in Utica/Marcellus for Tri-State Area
August 15, 2013August 15, 2013

An excellent permit “check-in”–a roundup of how many drilling permits were issued by county and driller, from Farm and Dairy, for the month of July in eastern Ohio, southwestern Pennsylvania and northern West Virginia:
Read More “July Permits Issued in Utica/Marcellus for Tri-State Area”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe
August 14, 2013August 14, 2013

According to a story in The Wall Street Journal, Antero Resources will spend half a billion dollars to construct an 80-mile pipeline in the Marcellus/Utica Shale region. But this rather expensive pipeline will not carry natural gas, gas liquids or even oil. Instead, it’s a pipeline that will deliver water from the Ohio River to some of Antero’s most active drilling locations scattered in West Virginia and Ohio–to be used for fracking.

For Antero with some 100K acres of leased land in the Marcellus, committing to half a billion dollars (the company grossed $265 million last year) is a huge roll of the dice…
Read More “Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe”
Energy Companies | Statewide WV | Stone Energy | Upper Devonian Shale | West Virginia

Stone Energy Update: On Track to Drill 30 Marcellus Wells in 2013
August 6, 2013August 6, 2013

Stone Energy is an independent driller with operations both off- and on-shore. Last December MDN told you about Stone’s plan to start spending 33% of its $650 million exploration and production budget for 2013 on drilling in the West Virginia Marcellus Shale (see Stone Energy 2013 Plans: Spend 33% of Budget on Marcellus). Plans were to drill 28-32 new Marcellus wells this year. According to Stone’s second quarter 2013 report released yesterday, they’re right on track. So far they’ve drilled 16 wells and are on track to complete up to 30 Marcellus wells by the end of this year.

In yesterday’s update, Stone CEO David Welch reiterated the company’s strategy is to move away from drilling in the relatively shallow Continental Shelf area of the Gulf of Mexico (less than 1,000 feet of water), and drill more in both the deep water Gulf region as well as in the Marcellus. Welch said their strategy continues to benefit the company with rising production numbers, particularly from the Marcellus wells drilled. We also learn from yesterday’s update that Stone has drilled a test well in the Upper Devonian Shale and expects to bring it online later this year. Select portions of yesterday’s 2Q13 update:
Read More “Stone Energy Update: On Track to Drill 30 Marcellus Wells in 2013”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Statewide WV | West Virginia

Marcellus Hiring Practices “Under a Microscope” by DOL
August 5, 2013August 5, 2013

Are you a driller, oilfield services or other supply chain company whose primary activity revolves around the PA or WV Marcellus Shale? If so, there’s a good chance you’re going to get audited by the U.S. Labor Department (DOL). Best to get your records (and hiring practices) in order now.

The biggest violation found by the DOL’s so-called Marcellus Shale Initiative: improperly classifying workers as independent contractors instead of salaried or hourly employees. Hiring workers as independent contractors is coming back to bite a number of companies, large and small. If the DOL finds a violation, they helpfully pass it on to the IRS, so after the DOL is done fining you, the IRS typically shows up on your doorstep for a second pound of flesh. Sweet…
Read More “Marcellus Hiring Practices “Under a Microscope” by DOL”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Statewide WV | West Virginia

The Marcellus Continues to be Star Performer for Chesapeake
August 5, 2013August 5, 2013

Different media outlets have analyzed the comments made last Thursday by Chesapeake Energy officials, looking for Chessy’s “take” on their particular region. A newspaper in West Virginia published the report below that looks at Chessy’s update on the Marcellus Shale in the southwestern corner of the play–otherwise known as the “wet gas” area. Bottom line: Although everyone continues to focus on the Chesapeake’s love affair with the Utica Shale, the Marcellus Shale is the play actually contributing to the company’s bottom line–in a big way. The Marcellus is helping turn around the good ship Chesapeake.

Of particular interest to MDN in this brief article is a short paragraph that mentions the signing bonus/royalty deals landowners in the Upper Ohio Valley have recently landed with Chesapeake and other drillers–some of the highest bonus and lease terms we’ve seen to date in the Marcellus…
Read More “The Marcellus Continues to be Star Performer for Chesapeake”
Economic Impact | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Statewide WV | West Virginia

“Notable Increase” in WV/PA NatGas Production from New Pipelines
July 31, 2013July 31, 2013

The U.S. Energy Information Administration (EIA) published a brief article in their online “Today in Energy” publication that points out natural gas production for both dry gas and wet gas has gone up in West Virginia and southwestern Pennsylvania because of new infrastructure–pipelines and processing plants.

Here is the EIA article, complete with nifty chart showing the rather dramatic increase in daily production:
Read More ““Notable Increase” in WV/PA NatGas Production from New Pipelines”
Statewide WV | Upper Devonian Shale | West Virginia

More Interesting Facts about the Upper Devonian Shale
July 29, 2013July 29, 2013

Some more interesting facts are coming to light about the new shale kid on the block: the Upper Devonian Shale. A recent AP article says Upper Devonian (UD) wells are a lot cheaper to drill than Marcellus and Utica wells because they are closer to the surface. And, surprise! UD wells are usually fracked using hydrogen, not water and chemicals–at least UD wells drilled in West Virginia. That is a revelation.

Will we now start to see more UD wells drilled in the northeast? That will depend on the commodity price of natural gas, because UD wells typically yield dry gas (methane) and not wet gas (with liquids and/or oil)–at least so far. If the price is right to make dry gas drilling profitable, you can expect to see the UD getting more attention…
Read More “More Interesting Facts about the Upper Devonian Shale”
Hydraulic Fracturing | Industrywide Issues | Statewide WV | West Virginia | Wetzel County

Striking a Balance: Preserving the Surface While Drilling in WV
July 29, 2013July 29, 2013

What happens when the mineral rights for oil and gas under a piece of land are owned by someone other than those who own the surface land itself? In West Virginia, that happens a lot–it’s a called a “split estate” and was done years ago for coal mining. Furthermore, what happens if the surface owner is the county or state government, and the land is a nature preserve, used for hunting and outdoor enthusiasts? It is a conundrum. Clearly the mineral owners have the right to access the minerals under the land, but in doing so, there’s going to be inconvenience for hunters and others using the surface land. Both sides have to work together.

The Lewis Wetzel Wildlife Management Area in Wetzel County, WV is a good example where both sides have not found a perfect solution, but it seems they have found a workable one…
Read More “Striking a Balance: Preserving the Surface While Drilling in WV”
Lease & Royalty Payments | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

New Report Shows Permits, Wells Drilled & More Near Your Address
July 23, 2013July 23, 2013

As you may know, MDN editor Jim Willis has been partnering with ShaleNavigator founder Ed Camp for more than a year now to bring you the three volume Marcellus and Utica Shale Databook series. The 2012 series was a huge success, and the new 2013 series (Volume 1 is out now) is shaping up to be the same. The Databook is a series of maps created using the excellent ShaleNavigator service to display where (and to whom) permits have been issued, county by county, throughout the Marcellus and Utica Shale region. However, the ShaleNavigator itself service is far more than just permits, displaying multiple “layers” of information users can turn on and off to display lease offers, pipeline locations, compressor station locations and much more (24 different layers in all).

Ed has just released an exciting and important new feature for the ShaleNavigator service: Subscribers may now produce reports displaying shale oil and gas wells, well permits, pipelines, and lease offer information near a specific address “on the fly.” Type in any address (your address maybe?), wait a few seconds, and get a PDF report detailing all of the permits issued, wells drilled, pipelines and lease offers within both a 2 mile radius and within a 5 mile radius of that address (see an example report embedded below). Folks, this is beyond cool!…
Read More “New Report Shows Permits, Wells Drilled & More Near Your Address”
Energy Services | Ethane | Industrywide Issues | MarkWest Energy | NGLs | Ohio | Pennsylvania | Pipelines | Processing Plants | Statewide OH | Statewide PA | Statewide WV | West Virginia

MarkWest: $2.2B in Marcellus/Utica, Bring on the Cracker Plants!
July 15, 2013July 15, 2013

MarkWest Energy, a major Marcellus and Utica midstream company, is investing $2.2 billion in the Marcellus/Utica region in pipelines, processing and fractionation plants. According to MarkWest, they have enough work in the northeast to keep them expanding for the next five years. One of the main services offered by MarkWest is removing ethane from raw natural gas. Their plan is to ship the ethane to either Canada or the Gulf Coast via pipelines. However, they’d love it if the region had “several cracker plants.” Here we go again with more cracker talk!

A good overview of MarkWest’s several billion dollar investment in the northeast, and their belief that the region needs its own cracker plant:
Read More “MarkWest: $2.2B in Marcellus/Utica, Bring on the Cracker Plants!”