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    PA House Member Intros Resolution to Stop DRBC Frack Ban Effort

    Rep. Jonathan Fritz

    Pennsylvania House of Representatives member Jonathan Fritz, Republican from Wayne County, PA, is one of the rising stars in the PA House. MDN editor Jim Willis has met and spoken with Rep. Fritz twice. Great guy. Conservative. Head screwed on straight. Fritz serves areas of both Wayne and Susquehanna counties in the northeastern corner of PA. Does Wayne County sound familiar? It should. It’s one of two counties the radicalized Delaware River Basin Commission (DRBC) wants to ban fracking in (see Governors from PA-NY-DE Vote to Ban Fracking in Dela. River Basin). A few weeks ago, the liberal Democrat governors of three states–PA, NY and DE–had their representatives vote to begin the process of placing a permanent ban on hydraulic fracturing (fracking) within the Delaware River Basin–supposedly because fracking is a threat to some 15 million people who get their drinking water from the Delaware River basin. Just one teeny tiny problem. Fracking IS allowed, and has been happening for over 10 years, in the neighboring Susquehanna River Basin, where over 4 million people get their drinking water. The SRBC (Susquehanna River Basin Commission) wisely does not restrict fracking–they only manage water withdrawals. There have been NO water issues in the SRBC. Yet the libs in the DRBC demand a ban based on a false meme of water contamination risk. Last week, Rep. Fritz introduced House Resolution 515, which (if passed) calls on the DRBC to abandon its efforts to strip away the property rights of people in the DRBC’s jurisdiction by enforcing a frack ban…
    Read More “PA House Member Intros Resolution to Stop DRBC Frack Ban Effort”

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    Canadians Approve TransCanada Pipe Lowball Plan to Compete with M-U

    Looks like begging works. TransCanada, one of Canada’s leading midstream/pipeline companies, cooked up a deal last year to pipe natural gas from Canada’s West Coast to the East Coast in order to fend off cheap supplies of Marcellus/Utica gas that will flow into Canada when/if the NEXUS and Rover pipelines get built (see TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica). TransCanada dropped their pipeline price to lure drillers by (theoretically) making it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. The original open season last year was a bust because TransCanada insists on a 10-year commitment (see TransCanada Plan to Lowball M-U Gas Using Canada Pipeline a Bust). TransCanada revived their plan in February. Although it looked almost like the same deal all over again with the same 10-year term and about the same price, TransCanada dropped a minimum amount to be shipped and is letting shippers opt out after five years under certain conditions. The changes worked (see TransCanada Says Plan to Lowball M-U Gas Worked, Shippers Sign Up). The plan needs a bevy of regulatory approvals, the main one being the Canadian National Energy Board (NEB). In hearings before the NEB two weeks ago, the Canadian Association of Petroleum Producers pleaded their case that the plan get approved (see Canadian Drillers Beg NEB to Approve Pipe Plan to Compete with M-U). Without it, western Canadian gas simply can’t compete with cheap, abundant Marcellus/Utica Shale gas flowing north. In somewhat dramatic terms, Canadian drillers claimed the “future of western Canada’s natural gas industry could depend on pipeline company TransCanada winning regulatory approval” of their lowball plan. The NEB bought it, and has just approved the lower rates…
    Read More “Canadians Approve TransCanada Pipe Lowball Plan to Compete with M-U”

  • Calendar of Marcellus/Utica Events for Sep 25 – Dec 24

    Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.

    To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address. Thank you!
    Read More “Calendar of Marcellus/Utica Events for Sep 25 – Dec 24”

  • Marcellus & Utica Shale Story Links: Mon, Sep 25, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Range Resources revamps Washington County park; oil and gas drilling continue in OH Utica; renewables displacing natgas in West Coast, at a very high cost; appeals court sidesteps decision on federal fracking regs; why U.S. natgas prices will remain low; is the EIA suppressing oil price with forecasts; now it’s a war on pipelines; NAFTA’s impact on Canadian energy imports/exports; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Sep 25, 2017”

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    Antero Resources Picks Up a Cool $1B from “Delevering” Initiative

    Ever hear the word “delevering” used in a sentence? How about this: “Antero Resources announces completion of $1 billion delevering program.” Yeah, financial mumbo jumbo. What the heck is delevering? We’re not quite sure. But we can interpret Antero Resources’ announcement yesterday for you, which included the aforementioned sentence. Here’s the translation: Antero has raised $1 billion by selling new units (think shares of stock) in its pipeline subsidiary ($311 million raised), and by monetizing its natural gas hedge portfolio ($750 million raised). Yes, back into the financial lingo weeds to figure out what is meant by “monetizing” the company’s “hedge portfolio.” We’ll take a stab at explaining it, below. Bottom line up here at the top: Antero figured out how to raise another $1 billion, used to pay off money Antero had borrowed under its massive $4 billion line of credit. Antero is one of the biggest (and best) drillers in the Marcellus/Utica, which is why we care about where and how they raise money…
    Read More “Antero Resources Picks Up a Cool $1B from “Delevering” Initiative”

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    Texas Private Equity Firm Forms to Invest in Marcellus/Utica

    District 5 Investments, an energy-focused private equity firm based in Texas, has formed a new subsidiary called Pathfinder Resources in order to invest in the Marcellus/Utica region. According to an announcement yesterday, Pathfinder will focus on acquiring “producing and non-producing oil and gas mineral interests, royalty interests and non-operated working interested” across the U.S., but starting first in the Marcellus/Utica. Investment sizes range from $5 million to $35 million. Here’s the latest investor to grab a piece of the Marcellus/Utica pie…
    Read More “Texas Private Equity Firm Forms to Invest in Marcellus/Utica”

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    Civil Debate in Plum, PA re Proposed Wastewater Injection Well

    As MDN reported in July, the Federal Environmental Protection Agency (EPA), the agency in charge of approving oil and gas wastewater injection wells, is currently reviewing an application and plan from Penneco Environmental Solutions (division of Penneco Oil Co.) to convert a plugged gas well into a brine (wastewater) injection well in Plum, PA–near Pittsburgh (see New Frack Wastewater Well on the Way in Allegheny County, PA). PA has just a handful of wastewater injection wells–less than 10. The most recent two such projects were vigorously opposed by the municipalities where they are located–Highland Township in Elk County, and Grant Township in Indiana County. The towns eventually backed down when they were sued by the PA DEP over their illegal actions (see PA DEP Issues 2 Wastewater Injection Well Permits, Sues 2 Towns). Although we expected a huge push-back in Plum, if a meeting held yesterday to debate the project is an indicator, perhaps the push-back won’t be as much as we thought. Yesterday a panel of experts–both pro and con–interacted with a crowd of around 100 people in Plum Council’s chambers. One of the people on the pro side was MDN friend Dave Spigelmyer, president of the Marcellus Shale Coalition. One of the people on the con side was Doug Shields, former Pittsburgh councilman and now paid agitator/protester for the radical Food & Water Watch. You might think there would be fireworks at such a meeting–but there wasn’t. The biggest surprise of the meeting is that there were no surprises–it was civil. No shouting. No theatrics. No loud-mouthed protesters. Such a project comes with serious questions and concerns–like earthquakes and water contamination. Those issues and more were addressed at the meeting…
    Read More “Civil Debate in Plum, PA re Proposed Wastewater Injection Well”

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    First-Hand Account: Rover Pipe’s Negative Impact on One Ohio Farm

    Not everyone on the “pro” side of the pipeline issue is happy with Rover Pipeline and the work they’ve done in Ohio. You know that MDN is supportive of the Rover project. You also know that MDN believes Craig Butler, director of the Ohio EPA, is way out of line with his campaign to fine Rover $2.3 million. However, Rover is not lily white in their handling of building the pipeline across Ohio. They’ve made mistakes. And they’ve made some enemies of the people who should be their biggest supporters–farmers whose land they cross. MDN editor Jim Willis recently spoke with one of those farmers, from the Definance, OH area. Ben Polasek owns a farm that has been in the family for four generations. He plants wheat, corn, and soybeans on his Ohio land. Polasek says he is a strong supporter of the energy industry–and of pipelines. However, he says, “Rover has not shown any respect for the landowners of this project.” Polasek says Rover made promises–like being able to access fields he needs to plant–only to see those promises broken. He also believes Rover didn’t properly plan for the heavy rains that caused his property to become a mud pit in areas where Rover was working. With pictures (below) and an impassioned letter to the Federal Energy Regulatory Commission (also below), Polasek is asking FERC to hold Rover responsible for the damage done to his, and other farmer’s, property…
    Read More “First-Hand Account: Rover Pipe’s Negative Impact on One Ohio Farm”

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    PA Sending Wrong Message to O&G, Petrochemical, Manuf Industries

    Charlie Schliebs – Stone Pier Capital Advisors

    Over the years MDN editor Jim Willis has had the pleasure of meeting many great people–both in the shale industry and in other industries that overlap with shale energy. One such person is Charlie Schliebs, managing director of the Pittsburgh-based Stone Pier Capital Advisors. Charlie is a long-time MDN subscriber (and friend). He’s a money guy, having had a hand in a number of deals to finance Marcellus/Utica drilling. He’s also smart, and a mover-and-shaker–well-connected with many of Pennsylvania’s top business and political leaders. Recently Charlie composed an editorial to share with his clients and friends. The original intent was to write about the severance tax and the sellout by PA’s Republican Senate. However, the editorial grew to encompass the state’s treatment of the petrochemical and even construction industries. We asked Charlie for permission to bring you his editorial, and he graciously agreed. In it, he offers some insight into his original support for Tom Wolf during the last gubernatorial election, his profound disappointment with Wolf (be sure to read about the event Charlie hosted in which then-candidate Wolf participated and made an arrogant fool of himself), and how Wolf settled on a 5% severance tax plan, based on an off-hand remark by EQT. This is great stuff–real behind-the-scenes stuff only someone like Charlie can write about. Take time to read the whole editorial…
    Read More “PA Sending Wrong Message to O&G, Petrochemical, Manuf Industries”

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    Corrupt DEC Bans PA Marcellus Brine in NY, Tightens Other Brine Use

    The Andrew Cuomo-corrupted New York State Dept. of Environmental Conservation (DEC), run by NRDC gang member Basil Seggos, has just slammed the door on New York towns using brine from the Pennsylvania Marcellus. Earlier this week the DEC posted new final regulations as part of “strengthening” the state’s solid waste regulations, referred to as Part 360. Brine is another name for produced water. When you drill a hole deep in the ground, well below the water table (which sits at maybe 200 feet down), over time water from the depths (a mile or more down) will come to the surface. This is not wastewater used in fracking (called flowback), but naturally occurring water (brine). It’s called brine because it contains a lot of minerals–far “saltier” than ocean water. There are a number of ways to dispose of all that water coming out of drilled wells for years after they are drilled–dispose of it via an injection wells, recycle it, or in some cases, treat it and use it as a deicer on roadways. Many towns use brine for that purpose. The DEC’s new regulations stipulate that if a town wants to use brine from conventional oil and gas wells, that’s fine (with certain restrictions). But if the brine comes from a Marcellus Shale well–it’s banned. Keep in mind there is virtually no chemical difference between the two. Which leads us to the conclusion that this is one more very intentional swipe at the shale industry by a state that is closed for business…
    Read More “Corrupt DEC Bans PA Marcellus Brine in NY, Tightens Other Brine Use”

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    Community College of Beaver County Preps Students for Cracker Jobs

    Looking to land a job at Shell’s $6 billion ethane cracker plant when it’s up and running in a few years? A new program set up by Shell with the Community College of Beaver County (CCBC) may give you a leg up. CCBC offers a program in process technology that leads to an associate’s degree. As of this spring, 45 people were enrolled. CCBC expects 70 people to enroll this fall. CCBC’s process technology degree is just one part of their effort to train people for advanced manufacturing careers with Shell and other petrochemical companies. CCBC is partnering with businesses, nonprofits, other colleges to form the Tri-State Advanced Manufacturing Consortium which will help prepare students and retrain workers to meet the needs of energy and manufacturing companies throughout the region. More deets on getting trained for a future cracker job…
    Read More “Community College of Beaver County Preps Students for Cracker Jobs”

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    Sourcewater Gets Investment from OH Cracker Plant Partner Marubeni

    Sourcewater is a cool company. A lot of water is used, and generated, when it comes to shale drilling. Millions of gallons of water is used to frack shale wells, and over time, millions of gallons of wastewater (flowback and brine) is generated and must be disposed of. Companies have entire departments dedicated to the task. Sourcewater came along a few years ago and created an online marketplace where those who need to buy water, and those who need to sell water, can find each other. How cool is that? The company is a spinout from MIT’s Energy Ventures program. Smart people behind it. Currently Sourcewater services/covers water needs in the Marcellus/Utica (Pennsylvania, Ohio, West Virginia), along with Texas, Oklahoma and Alberta (Canada). Sourcewater is about to grow. The company announced earlier this week that Marubeni Corporation (financial company based in Japan) is making an investment in the company. No numbers were shared. The news caught our attention because (a) Sourcewater operates in the Marcellus/Utica, and (b) Marubeni is the money behind the forthcoming ethane cracker in Belmont County, OH…
    Read More “Sourcewater Gets Investment from OH Cracker Plant Partner Marubeni”

  • Marcellus & Utica Shale Story Links: Fri, Sep 22, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Wayne Forest lease sales change lives with nearly $7M to date; WV’s Charlie Burd ‘Man of the Year’; Shell teaches kids about energy jobs; corrupt Cuomo colludes with other governors to fleece residents re climate change; PA’s traitorous Republican Senate rejects House no-severance tax budget; stealth boom in forgotten shale competes with Marcellus/Utica; US LNG exports continue to rise; and more!
    Read More “Marcellus & Utica Shale Story Links: Fri, Sep 22, 2017”

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    Northeast Energy Management Goes Bankrupt; Auctioning Rigs, Assets

    It’s always sad when we have to report that a Marcellus/Utica-focused company goes out of existence. Northeast Energy Management, which operated under the name Northeast Energy with headquarters in Indiana, PA, claimed to be “a leader in tophole drilling in the Marcellus/Utica shale” and “a preferred contractor for many of the largest oil and natural gas exploration and production companies.” Perhaps it was, but it is no more. The company filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court – Western District of Pennsylvania back in January of this year. As of yesterday the court ordered the company’s assets to be liquidated at auction. A live and online auction will take place next week, on Sept. 27, featuring two Schramm drilling rigs, Detroit Diesel engines with pipe handlers, trailer mounted and skid mounted air compressors, boosters, generators, accumulators, trailers and a variety of tractors, pick-up trucks, construction equipment and other drill site related equipment. Here’s the the details about the auction and how you can participate…
    Read More “Northeast Energy Management Goes Bankrupt; Auctioning Rigs, Assets”

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    Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe

    From the day the first backhoe began digging in Ohio, it has appeared that Ohio EPA director Craig Butler has had a grudge against Rover Pipeline. We’re not saying Rover hasn’t had its fair share of environmental transgressions that need to be monitored and rectified. But Butler has been on a one-man mission to punish Energy Transfer, the builder, demanding (without legal authority) insanely high “fines” from ET Rover. At first it was $400,000. Then $900,000. Now Butler says ET owes the state $2.3 million! Butler is trying to draw in Ohio’s Attorney General into the confusion in order to shake down Energy Transfer and make them pay. Yesterday Butler held a conference call with the media (MDN wasn’t notified/invited) where he made wild allegations. What seems to have precipitated Butler’s media bender is a decision by the Federal Energy Regulatory Commission (FERC) on Monday to allow ET to resume horizontal directional drilling (HDD) in most Ohio locations, after banning it for several months (see FERC Lifts Rover Horizontal Drilling Ban, Pipeline Work Resumes). On yesterday’s call Butler said, “I’m not overly happy that they’re [FERC] allowing them [Energy Transfer] to restart operations while we [Craig Butler, Ohio EPA] have outstanding issues.” Butler has issues all right. Butler is kind of drunk on his own power. It’s time for someone (maybe the AG?) to investigate Butler and find out if he’s colluding with Big Green groups. Is the OEPA short on money in its budget? Where does the revenue from such fines go? And on what statutory authority can OEPA levy a fine on a FEDERAL project? Inquiring minds want to know…
    Read More “Ohio EPA’s Craig Butler Goes Nuts, Demands $2.3M from Rover Pipe”

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    Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover

    At a staged media event yesterday, Ohio EPA director Craig Butler had no end of insults for Energy Transfer and their Rover Pipeline project, making wild claims that the company now owes the state $2.3 million in fines (see today’s companion story). However, at the same media event, Butler had faint praise for another project–NEXUS Pipeline. The OEPA issued a federal water permit for the project on Tuesday. NEXUS is a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. The project is co-owned by DTE Energy of Detroit and Spectra Energy (now part of Canadian company Enbridge). NEXUS got final approval from the Federal Energy Regulatory Commission in August, the first major pipeline to get approved following a newly restored quorum at FERC (see New FERC Quorum Votes Final Approval for NEXUS Pipeline). At yesterday’s media circus, Butler said he and his agency have learned from their “mistakes” with Rover, and that NEXUS’ application includes much more detailed plans. Although OEPA likes the NEXUS paperwork, the agency is requiring more “contingency and storm water planning” from NEXUS as a condition of the permit…
    Read More “Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover”