• Marcellus & Utica Shale Story Links: Tue, Sep 26, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Pipeline expansions outpace production forecast, good news for M-U supply; natgas locomotives powering more trains; what a Fed rate hike means for shale; renewables pain offsetting gas export gains; natgas prices trade up, then fall back; Exxon aims to curb methane emissions from shale division; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Sep 26, 2017”

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    PennEast Pipeline’s Sole Compressor Station Approved by PA Town

    PennEast Pipeline has just achieved yet another milestone on its way to getting built. At a meeting last Thursday, the Board of Supervisors for Kidder Township (Carbon County, PA) voted 5-0 in favor of issuing a permit to PennEast to site the one-and-only compressor station the 120-mile pipeline will need. Proving yet again that most Pennsylvanians are in favor of this project, contrary to the mainstream/leftist media drumbeat against it. PennEast is a $1 billion primarily 36-inch pipeline from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. The company expects final Federal Energy Regulatory Commission (FERC) approval any week now. There are still a few hurdles left–mostly in New Jersey. But those hurdles are certainly surmountable. The radical Sierra Club and THE Delaware Riverkeeper are adamantly opposed and continue to try and throw up legal (and regulatory) roadblocks. No matter. This important pipeline will get built–and this compressor station approval is one more bit of evidence that it will get built…
    Read More “PennEast Pipeline’s Sole Compressor Station Approved by PA Town”

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    Twin Eagle Sand Enters Marcellus/Utica with WV Transload Facility

    Twin Eagle Resource Management, headquartered in Houston, TX, bills itself as a provider of wholesale energy and midstream services throughout North America. Twin Eagle also serves the upstream (drilling market) via a number of transloading facilities to ship and store frac sand. Currently Twin has five facilities, serving: Central Eagle Ford (Elmendorf, TX), South Eagle Ford (Laredo, TX), Powder River Basin (Douglas, WY), Permian Basin (Big Spring, TX), and DJ Basin (Evans, CO). You can now add a sixth facility–a frac sand transloading facility in Bridgeport, WV, to service the Marcellus/Utica region. Last week Twin Eagle Sand Logistics (Twin Eagle subsidiary) announced a deal to buy an existing frac sand terminal in Bridgeport from Process Transloading Bridgeport. Terms of the deal were not disclosed. “Transloading” is a simple concept. It means you ship the sand in via railroad, or barge, unload it, store it, and then load it onto trucks which haul it to well pads where it gets used to frack shale wells. Let’s give a hearty welcome to the latest entrant into the Marcellus/Utica supply chain! Here are the particulars of the Bridgeport facility…
    Read More “Twin Eagle Sand Enters Marcellus/Utica with WV Transload Facility”

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    Buffalo Bills Owner Terry Pegula Lives a (Fracking) Double Life

    Terry Pegula is an interesting guy. He’s a billionaire who owns both the Buffalo Sabres (NHL hockey team) and the Buffalo Bills (NFL football team). Pegula is the owner of East Resources, once a big driller (and holder of acreage) in the Marcellus Shale. Pegula sold off East’s Marcellus assets and used the money, in part, to buy the Buffalo Bills in 2014, which gave rise to MDN calling the team “the Marcellus Bills”–since it was Marcellus money that kept the team in Buffalo, instead of moving to another market (see Buffalo Bills Stay in Buffalo, Thanks to $1.4B of Marcellus Money and Buffalo “Marcellus” Bills – Team Sold to Fracker for $1.4B). Yes, “dirty” fracking money saved the Bills! That’s a real conundrum for the lefties in Buffalo, including the Buffalo News. The lefties love the fact the Bills stayed in town, but it was “blood money” that bought the team. That’s the attitude. Recently the Buffalo News woke up to the fact that Pegula is still fracking. He started up a new company, JKLM, in order to keep his finger in the Marcellus/Utica pie. JKLM is, as we reported in July, fracking 12 Utica wells in Potter County, PA this year (see JKLM Drilling 12 Utica Wells in Potter County, PA This Year). The News has finally figured it out, and written an expose on Pegulas “other world,” like he’s hiding another wife and family somewhere secret, living a secret double life. Kind of funny! In a “rare interview,” Pegula is unapologetic for his fracking roots, and for his continued fracking practices. The article shares insights into Pegula’s fascination with the oil and gas industry, and his interest in Potter County, PA…
    Read More “Buffalo Bills Owner Terry Pegula Lives a (Fracking) Double Life”

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    Marcellus Industry Keeps a Close Eye On 3 Pending Bills in PA

    The Marcellus industry is closely watching three pieces of legislation sitting in the Pennsylvania legislature, bills that the industry fervently hopes do not pass. One of the bills is House Bill (HB) 557, introduced by Rep. Garth Everett, which would amend/fix the Oil and Gas Lease Act to ensure landowners get a minimum royalty of 12.5%, regardless of post-production deductions (see PA Rep. Garth Everett Reintroduces Minimum Royalty Bill, 3rd Time). Another bill is HB 1624, which would slap a 6.5% severance tax on the drilling industry, with an allowance for drillers to deduct the current impact fee they already pay (the equivalent of a severance tax). So in essence, HB 1624 doubles or triples the existing severance tax (i.e. impact fee) to obscene new highs. The third bill is HB 542, the state budget bill for 2017 passed by the Senate (not the House), which would initiate a new 2% severance tax on top of the existing impact fee (see Traitorous PA Senate Republicans Pass Severance Tax Bill). Two of the three bills are unlikely to get passed during this session. The third is a toss-up. Which is which?…
    Read More “Marcellus Industry Keeps a Close Eye On 3 Pending Bills in PA”

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    CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court

    NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, is about ready to begin construction–any time. NEXUS got final approval for the project from the Federal Energy Regulatory Commission (FERC) 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). Last week one of the final remaining hurdles came down when the Ohio EPA granted a water permit for the project (see Ohio EPA Grants Water Permit to NEXUS Pipe, “Learned” from Rover). The only cloud on the horizon are multiple lawsuits and regulatory requests filed by anti-fossil fuel groups, including CORN (Coalition to ReRoute Nexus, folks we call CORNballs), and the far-left Sierra Club. Both groups have launched lawsuits and regulatory actions against the pipeline. Those efforts, which increasingly are long-shots, continue. Here’s what CORN and the Sierra Club are doing now that Ohio EPA has given the project its blessing…
    Read More “CORNballs, Sierra Club Continue to Fight NEXUS Pipeline in Court”

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    MAX Enviro Not Walking Away from M-U, Wants to Expand PA Landfill

    MAX Environmental has operated the Bulger hazardous waste landfill in Smith Township (Washington County), PA since 1958. One of the primary customers for the landfill over the past 10 years has been the Marcellus industry–dumping drill cuttings (leftover dirt and rock from drilling) at the landfill. Earlier this year, MAX sold itself to Altus Capital Partners–a private equity investment firm–for an undisclosed amount (see Pittsburgh-based MAX Environmental Purchased by Investment Firm). With the closing of the deal, MAX’s CEO/owner, William Spencer, rode off into the sunset and Bob Shawver was brought in as the new CEO. Shawver acknowledged it would have been “nuts” not to pursue business from the shale industry when it was going gangbusters, but Shawver said he would “retool” MAX–away from depending on the Marcellus industry. MAX will no longer be known and branded as a company in the oil and gas space. Shawver is rebranding the company, going after customers that are the region’s “traditional bread and butter”–manufacturing, industrial facilities and construction (see MAX Environmental Walks Away from Marcellus/Utica). Except reality has set in and plans have changed. MAX is applying for a permit to expand the Bulger facility by 21 acres, to continue doing what they are doing now. And what, you may ask, are they doing now? “Most of the residual waste MAX accepts now consists of drill cuttings from the Marcellus Shale industry.” Looks like MAX isn’t walking away from the Marcellus after all…
    Read More “MAX Enviro Not Walking Away from M-U, Wants to Expand PA Landfill”

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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”