• | | | | | |

    FERC Frustrates Kentucky Radicals Seeking to Stop TGP Pipe Reversal

    What’s in the water in Kentucky? Seems to be a state full of anti-drilling, anti-pipeline nutters. Kentucky has been responsible for killing at least one pipeline, the Bluegrass Pipeline that would have flowed Marcellus/Utica NGLs (natural gas liquids) all the way to the Gulf Coast (see Bluegrass Pipeline Aborted Before It was Born – RIP). That project would have involved laying 200 miles of new pipeline through Kentucky, and wealthy horse farms would have none of it. Kinder Morgan is making a run at a similar project–but this time the pipeline is already in the ground. Kinder Morgan, as we previously reported, is working on a project to convert 964 miles of the Tennessee Gas Pipeline, part of which runs through Kentucky (KM Plans to Convert Tennessee Gas Pipeline to Flow M-U NGLs South). Kinder wants to reverse the flow of TGP, which currently sends natural gas from the Gulf Coast to the northeast, turning it around and sending natural gas liquids from the Marcellus/Utica to the Gulf Coast. The first step in the process was recently approved by the Federal Energy Regulatory Commission (see FERC Advances Plan to Reverse Part of TGP to Haul M-U NGLs to Gulf). Antis in Kentucky have their bluegrass knickers in a twist over FERC’s action. They’ve filed a request for “rehearing” of FERC’s decision, which is the first step in a process that will end up in court. First the aggrieved party must request a rehearing. If FERC denies the request, the antis (using Big Green money) then file a lawsuit in federal Appeals Court to try and stop FERC from continuing to approve the project. Normally FERC has 30 days to decide on a rehearing, however, they have a little tactic they call a “tolling order” which allows them to extend the amount of time to make a rehearing decision–indefinitely. FERC has pulled out the tolling order card and played it with the TGP project–and that has the Kentucky nutters fuming…
    Read More “FERC Frustrates Kentucky Radicals Seeking to Stop TGP Pipe Reversal”

  • |

    Deep Well Services Introduces 5th Generation Snubbing Rig for M-U

    Deep Well Services (DWS) is a “snubbing” oilfield services company headquartered in Pennsylvania. DWS operates a special kind of drilling rig (snubber) that allows the company to drill existing wells already under pressure further out, inserting pipe into a working well, or retrieving pipe from a well, without shutting down the well. It’s called snubbing and it’s a specialized, delicate operation. DWS is one of a handful that performs the service in the Marcellus/Utica. DWS has just unveiled its newest state-of-the-art snubbing rig–a “fifth-generation” rig, built for the deeper, longer, and higher pressure wells Marcellus/Utica drillers are now drilling…
    Read More “Deep Well Services Introduces 5th Generation Snubbing Rig for M-U”

  • |

    Marcellus/Utica Monster Drives Most Growth in US NatGas Production

    The number crunchers have been crunching away at our favorite government agency, the U.S. Energy Information Administration. And what have they found in crunching shale-related numbers? The Marcellus/Utica (i.e. the Appalachian region) is a monster. In 2012 the M-U produced a cumulative 7.8 billion cubic feet per day (Bcf/d) of natural gas production. Now, in 2017, it’s producing 23.7 Bcf/d. That’s triple the volume in just five years! No other shale play comes close. When you look at the EIA chart (below) you easily see that Appalachia, the Marcellus/Utica, is THE big kahuna of shale plays…
    Read More “Marcellus/Utica Monster Drives Most Growth in US NatGas Production”

  • Marcellus & Utica Shale Story Links: Tue, Dec 5, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Lawyer says Marcellus Shale is back; crucial Virginia pipeline votes coming in next 2 weeks; don’t count on a Utah shale boom following Trump’s announcement; Liberty Utilities looks to bring in more natgas for NH via pipeline; NAACP report attacking o&g backed on repackaged talking points; energy production up, pipelines can’t keep up; game on for gas capture tech; Perry and Saudi leaders talk; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Dec 5, 2017”

  • | | | | |

    Cool Charts: Top 20 Marcellus Drillers, Top 20 Utica Drillers, More

    Important Correction: Although the data, charts and graphs shared by MDN below did not originate with MDN, we should have noticed a glaring error. Production numbers for Antero Resources for the Marcellus were not included! (Antero numbers in the Utica were included.) Antero’s drilling and production is prolific in the Marcellus–easily putting Antero in the top 3 or 4 for production in the Marcellus. We regret the error in not noticing and calling attention to this whopping oversight sooner. – Jim Willis, 12/14/17

    Hart Energy publishes an excellent magazine called Exploration & Production (E&P). A recent article published on the E&P website reports on rising production of natural gas in both the Marcellus and Utica Shale plays. As MDN has continued to report month after month with the release of each monthly EIA Drilling Productivity Report, our region consistently hits new production records (see EIA Nov ’17 Drilling Report: Record-Breaking Year-End on the Way). The E&P article recounts some of those EIA record-breaking stats, and then inserts a series of charts that we found extremely interesting and useful–because they convey so much information in a visual, fast way. Below are those charts. When you look at the Top 20 Marcellus Operators by production, you will immediately notice that the three largest producers (Chesapeake, Cabot Oil & Gas, and Southwestern Energy) take up nearly half the pie–and those three have wells almost exclusively in the northeastern part of Pennsylvania (Chessy and Southwestern have some wells in other parts of the state). What’s even more mind blowing: Cabot’s massive production at #2 in the Marcellus (just barely behind Chesapeake) all comes from a single, northeastern county: Susquehanna County, PA. Enjoy this visual feast…
    Read More “Cool Charts: Top 20 Marcellus Drillers, Top 20 Utica Drillers, More”

  • | | | | |

    Crestwood Scores Big Victory in Seneca Lake LPG Storage Project

    This news is a bit dated, but still important. Crestwood Equity (used to be called Crestwood Midstream) won an important court victory in September regarding its plan to build an LPG (liquefied petroleum gas, or propane) storage facility in depleted salt caverns in New York. In 2009 Inergy filed a request to convert a depleted salt cavern along the shore of Seneca Lake (in Schuyler County, NY, near Watkins Glen) into a propane/natural gas storage facility. Inergy was later bought by and merged into Crestwood Midstream, and Crestwood Midstream later renamed itself Crestwood Equity Partners. The New York Dept. of Environmental Conservation (DEC) has been sitting on its hands from the beginning, refusing to grant the necessary permits to allow the facility to open. Earlier this year Crestwood scaled back its plans, dropping natgas storage but keeping LPG storage (see Crestwood Drops Seneca Lake Natgas Storage Plan, Keeps LPG Plan). In September, a chief administrative law judge, part of the DEC, ruled against antis who are demanding ongoing, never-ending hearings about the project–a transparent tactic to continue the years-long delay in perpetuity. The judge said the DEC has all the evidence it needs to make a decision. Of course, the decision will get made by a radical anti who heads up the DEC–Basil Seggos (part of the National Resources Defense Council cabal that opposes all fossil fuel projects). So the project still has miles to go before it becomes reality. Perhaps insurmountable miles. But, let’s enjoy this major victory against antis, spun as a minor victory by profoundly biased “reporter” Tom Wilbur in the Binghamton Press & Sun-Bulletin…
    Read More “Crestwood Scores Big Victory in Seneca Lake LPG Storage Project”

  • | | | | | | | | |

    MDN Guide to Finding a Job at the Shell Cracker Plant

    Although Shell’s mighty $6 billion ethane cracker chemical complex won’t be completed until around 2020, Shell is not waiting with respect to recruiting talent to operate the plant. Shell recently launched a page on their main website dedicated to recruiting people for cracker plant jobs (see that page here). Please note these are not jobs building the plant, but instead are jobs working at the plant, after it’s built. The CBS affiliate in Pittsburgh, KDKA Channel 2, noticed the Shell jobs page for the cracker project and reports that “there are no job listings yet, those interested can sign up to receive email alerts when job listings are posted to the site.” It’s true folks can now sign up to receive new job postings via email. However, KDKA missed the fact that there are several jobs already posted related to the cracker facility…
    Read More “MDN Guide to Finding a Job at the Shell Cracker Plant”

  • | | | | | | | |

    FERC Clears TGP Orion Expansion to Begin Service to New England

    In October 2015, Kinder Morgan’s Tennessee Gas Pipeline (TGP) filed their official, full application with the Federal Energy Regulatory Commission (FERC) seeking approval for their Orion Project (see Tennessee Gas Pipeline Files PA Orion Project with FERC). The $109 million project consists of 13 miles of new “looping” pipeline in Pike and Wayne counties, Pennsylvania. The project will boost capacity on the TGP by another 135 million cubic feet per day (MMcf/d), allowing TGP to pump more yummy Marcellus Shale gas to Mid-Atlantic and New England states. FERC gave final approval for the project in February of this year (see TGP Orion Project in NEPA Gets Final Approval by FERC). In March, Big Green group THE Delaware Riverkeeper filed a lawsuit in the U.S. Court of Appeals for the Third District requesting the court overturn a Clean Water Act permit granted to the project by the U.S. Army Corps of Engineers. In August, the Third Circuit rejected Riverkeeper’s request in a humiliating defeat (see Dela. Riverkeeper Loses Fed. Court Case Against NEPA Pipeline). According to the original plan, the TGP Orion upgrade will be complete and in-service by June 2018. December 2017 is certainly “by June 2018” and that’s a good thing, because Orion is now done and FERC has just given TGP the green light to start it up…
    Read More “FERC Clears TGP Orion Expansion to Begin Service to New England”

  • | | | | | | | |

    Lancaster Farmland Trust Settles Lawsuit Against Atlantic Sunrise

    Lancaster Farmland Trust, a leftist group that seeks to stop all development of land in and around Lancaster County, PA, sued a farmer and Atlantic Sunrise Pipeline after the Lancaster farmer signed an easement on a piddly 1.5 acres of land. The Trust claimed according to the terms of the deed the landowner didn’t have the right to sign the easement (see Atlantic Sunrise Files 13 Eminent Domain Cases in 4 Counties). The previous owners of the property “donated a conservation easement to the trust that specifically stated various man-made activities, and specifically listing pipelines, could not be built on the property.” We think that’s particularly sleazy (and should be illegal)–forever saddling future owners of the property with restrictions. No matter–it’s frequently done, and a lesson to landowners to beware, DON’T buy properties with such restrictions. If enough people refused to buy such properties, property owners would quit doing it because their property is no longer salable. But we digress. Transco Pipeline (of which Atlantic Sunrise is a part) tried to get the case tossed, but a Lancaster County judge refused. So Transco terminated the easement with the property owner, then turned around and filed a eminent domain lawsuit against the property owner and the Trust, which got the Trust’s attention. They’ve just settled the case, fearing (knowing) a judge would rule against them anyway. In the end, it seems to have come down to the Trust wanting money. They got $12,470 for the easement plus another $25,000 to cover their legal fees. The actual landowner got (as near as we can tell), nothing…
    Read More “Lancaster Farmland Trust Settles Lawsuit Against Atlantic Sunrise”

  • | | | | | |

    Marcellus/Utica Gas Soon Heading to Canadian Capital of Ottawa

    Iroquois Gas Transmission System is a natural gas pipeline that brings gas from eastern Canada to the New York City area. It is owned by TransCanada Corporation, Dominion Resources, KeySpan Corporation, New Jersey Resources Corporation, and Energy East Corporation. There have been plans, for years, to connect the Constitution Pipeline to the Iroquois and flow Marcellus/Utica gas to Canada by converting Iroquois to be bidirectional. As we all know, the Constitution has been stalled since 2014 because of the corrupt State of New York blocking it. There’s still hope that Constitution will get built. In October they asked the Federal Energy Regulatory Commission to override the New York and allow the project to proceed (see Constitution Pipeline Asks FERC to Override NY DEC). Iroquois is no longer waiting on the Constitution. They’ve pushed forward and recently Canada’s National Energy Board (NEB) voted to approve changing the Iroquois on their side of the border to be bidirectional, allowing Marcellus/Utica gas to begin flowing into Ontario–eventually all the way to the capital city of Ottawa by hitching a ride on TransCanada’s pipeline network. How cool is that? Marcellus/Utica gas supplying the capital of Canada. A report by the Ontario Energy Board says Marcellus/Utica gas is projected to supply up to 74% of Ontario’s natgas demand!…
    Read More “Marcellus/Utica Gas Soon Heading to Canadian Capital of Ottawa”

  • | | | | | |

    FERC Says Emails Prove Rover Lied About Demolishing This Old House

    In May 2015, Rover purchased a house in Carroll County, OH, located near where the pipeline, and a compressor station for that pipeline, is due to run. Rover bought the house to use for offices for several Rover affiliate companies. After buying it, Rover determined the house was “ill-suited for its intended purpose” and decided to demolish it. Problem was/is, that house was under consideration to be added to the National Register of Historic Places. The house was not yet on the list of Historic Places, but was on a list of properties under consideration. Their action in demolishing the house landed Rover in hot water with the Federal Energy Regulatory Commission (see Rover Pipeline in Hot Water Over Demolishing Historic House in OH). FERC said Rover should have reported their decision to demolish the house. Rover had to pay a “fine” of $2.3 million “to a fund administered by the Ohio History Connection Foundation and the State Historic Preservation Office” (see Rover Pipeline Paying $2.3M for Knocking Down Historic OH House). FERC issued a “Staff Notice of Alleged Violations” related to this old house in July of this year (see Rover Still in Hot Water w/FERC Over Demolishing This Old House). The notice says Rover “did not fully and forthrightly disclose all relevant information.” FERC also said, “Rover falsely promised it would avoid adverse effects to a historic resource that it was simultaneously working to purchase and destroy.” Because of the house demolition, FERC refused, and continues to refuse, to issue a blanket authorization for routine construction. In a FERC communication from last week, FERC says they have a smoking gun–copies of emails that prove Rover bought this old house with the intention of demolishing it right from the beginning…
    Read More “FERC Says Emails Prove Rover Lied About Demolishing This Old House”

  • | | | |

    Antis “Shocked” Philly Approved Marcellus Power Plant for SEPTA

    A few weeks ago a group of environmental Nazis pledged to “swarm” and shut down a SEPTA (Southeastern Pennsylvania Transportation Authority) meeting where a vote would be taken to build a Marcellus gas-powered electric plant that would provide electricity to SEPTA’s northern Regional Rail lines–a win/win for all Pennsylvanians (see Antis Plan to Shut Down Philly Transit Meeting re NatGas Powergen). The reason the enviro bullies wanted to shut down the meeting was to stop the vote because the clean-burning plant being proposed would burn a “fossil fuel.” When they weren’t looking, Philadelphia Air Management Services (AMS) went ahead and issued the permit that allows SEPTA to move forward with the proposed natgas power plant, which will get built in a place called Nicetown. Nice. The AMS vote “came as a surprise” to the antis. It was their “last hope” to stop the plant. So what happens now? Big Green group Clean Water Action says they will litigate, attempting to use a strategy that has worked lately–invoking the Pennsylvania Environmental Rights Amendment…
    Read More “Antis “Shocked” Philly Approved Marcellus Power Plant for SEPTA”

  • Marcellus & Utica Shale Story Links: Mon, Dec 4, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Inflection Energy offers update on 60K gallon spill in Edlred Twp; Cove Point LNG export plant no 99.3% done; UGI cuts residential electric rates 2.4%; is PA Rep. Garth Everett slinking toward supporting severance tax?; hundreds gather to protest pipelines in Virginia; EQT hands out scholarships; Democrat governors caught colluding & outsourcing climate work to anti groups; small player on Wall Street carves out niche in shale; does OPEC have an exit strategy?; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Dec 4, 2017”

  • | | | | |

    Small Marcellus Well Pad Fire in Somerset PA Leads to Evacuations

    This is the second day in a row we’ve had to bring you news of a fire at a Marcellus Shale well site. Yesterday we told you about a fire at an EQT well pad in Marshall County, WV (see Fire at EQT Well Pad in Marshall County, WV). That fire started in gas processing equipment near the well. Like yesterday’s WV news, today’s news of a fire in Pennsylvania also concerns equipment being used at the well pad–NOT a fire in the actual well itself nor anything to do with drilling or fracking. The well pad in question is the first location where Marcellus wells were drilled in Somerset County–a decade ago. Yesterday a fire ignited around 9 am at the Menhorn well pad, owned by Xtreme Energy. The fire “was in a flange next to the cooling tower” at the well pad. The fire was out within an hour. Nobody was injured, although firefighters did evacuate four nearby homes (eight people) just to be safe. The all-clear was given by 10:30 am. The state Dept. of Environmental Protection (DEP) is on the site and a preliminary report concludes “the equipment associated with the well failed and caught fire, but the wellhead was not on fire.” Here’s the details as we have them…
    Read More “Small Marcellus Well Pad Fire in Somerset PA Leads to Evacuations”

  • | |

    ECA Sells Marcellus/Utica Assets to ArcLight Capital – Shareholders Shafted

    Greylock Energy CEO Kyle Mork

    Big news concerning Energy Corporation of America (ECA), a privately owned company founded in 1963 with corporate headquarters in Denver, CO. The company owns (or rather owned) and operated approximately 4,600 (mostly vertical) wells, 5,000 miles of pipeline, and leases more than 1 million acres in North America–most of it in Appalachia. We spotted a press release yesterday that says ArcLight Capital has acquired substantially all of ECA’s natural gas production and pipeline assets. But here’s where it gets interesting. ArcLight has set up a subsidiary called Greylock Energy, which will own the assets–all of the ECA natgas/pipeline assets will go to Greylock. The former CEO of ECA, Kyle Mork, will become the CEO of Greylock. Many (most?) of top management from ECA will become part of Greylock. The existing ECA palatial headquarters building we told you about back in 2014 (see ECA’s New Regional HQ in Charleston: More WV Drilling on the Way?) will become the new HQ for Greylock. In other words, it’s all still ECA, but there’s a new nameplate on the door. So what really happened? What happened, according to an MDN source, is that ECA did something akin to what we’ve seen a number of times before: they converted debt into equity (ownership) and shafted existing shareholders out of millions of dollars. Except in this case we’re not sure ECA actually had large debts. There’s no way to know since it’s a private company. But the pattern is the same. ECA gave the keys to new owners, leaving the previous owners (i.e. shareholders) standing on the curb…
    Read More “ECA Sells Marcellus/Utica Assets to ArcLight Capital – Shareholders Shafted”