Marcellus Drilling News

Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Statewide PA

Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0
August 31, 2017August 31, 2017

Yesterday MDN brought you the news that Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011 (see Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well). In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). The DEP said a Range well, drilled in 2011 in Lycoming County, PA, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled said methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board. In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We thought that was THE END. But it wasn’t. On Monday of this week, both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” We now have a copy of the settlement itself–and it shows the DEP will not extra one penny from Range over what they previously said should cost $8.9 million. Interesting. Antis like THE Delaware Riverkeeper, Maya van Rossum, are “dumbfounded” at the settlement. Below is a copy of the settlement paperwork and select anti reaction to it…
Read More “Range/DEP Lycoming Well Settlement: From $8.9M Fine to $0”
Energy Companies | EQT Corp | Fayette County | Industrywide Issues | Litigation | Wastewater | West Virginia

Fayette County, WV Loses Appeal to Block Injection Well
August 31, 2017August 31, 2017

An effort by Fayette County, WV to ban injection wells in the county has gone down to a final defeat. In January 2016, three liberal Democrat county commissioners from Fayette County, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). The ban was intentionally written so broadly it would also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). One of the chief architects of the ban, from the Mountain Party, admits the ban was intended to stop all oil and gas activity in the county (see Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells). Fearing they would lose the EQT lawsuit, in March 2016 the Fayette commissioners backed away from the position of banning everything to do with drilling in the county. They revised the proposed ban regulation as a tactic to avoid losing their court case (see Fayette WV Commissioners Change Ban to Focus on Injection Wells). It didn’t work. In June 2016, a federal judge tossed out Fayette’s illegal ban (see Federal Judge Rules Fayette County Injection Well Ban Illegal). But that didn’t stop the lib Dems who, with the assistance of the radical Appalachian Mountain Advocates, appeal the federal judge’s decision (see Fayette County, WV Appeals Federal Court Ruling on Injection Well). That appealed case went to the 4th U.S. Circuit Court of Appeals, which has just ruled that Fayette County was out of line (copy of the decision below). Counties can’t make up their own oil and gas regulations–that right is reserved to the state…
Read More “Fayette County, WV Loses Appeal to Block Injection Well”
Energy Services | Industrywide Issues | Kinder Morgan | Litigation | Pennsylvania | Pipelines | Regulation | Statewide PA | Tennessee Gas Pipeline

Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline
August 31, 2017August 31, 2017

Last week MDN brought you the news that THE Delaware Riverkeeper had lost a federal lawsuit against Kinder Morgan’s Orion Project to expand the Tennessee Gas Pipeline in northeast Pennsylvania (see Dela. Riverkeeper Loses Fed. Court Case Against NEPA Pipeline). Riverkeeper argued that both the U.S. Army Corps of Engineers and the PA State Dept. of Environmental Protection (DEP) should not have issued Clean Water Act stream crossing permits for the project. Last week a federal court ruled that the U.S. Army Corps was well within its right to do so. This week the other shoe dropped. The U.S. Court of Appeals for the Third District ruled that the DEP was also within its right to issue a permit. In this case, two strikes and THE Delaware Riverkeeper is out. The project, which received full Federal Energy Regulatory Commission approval in February of this year, remains on track to be built/online in June 2018…
Read More “Dela. Riverkeeper Loses 2nd Court Case Against NEPA Pipeline”
Industrywide Issues | Lycoming County | Pennsylvania | Statewide PA | Taxation

PA Sen. Gene Yaw Defends Vote for Severance Tax
August 31, 2017August 31, 2017

PA Sen. Gene Yaw

As MDN previously reported, in July the Pennsylvania Senate, which is controlled by Republicans, voted to enact a new severance tax on top of the existing impact fee (see Traitorous PA Senate Republicans Pass Severance Tax Bill). We named names in that article of those Republicans we consider to be traitors to the industry by voting for this insanity. One of those Senators is Gene Yaw, from Williamsport. Until now, we had not publicly read of how northeast PA Senators justify their vote for the severance tax. We now have. Sen. Yaw provided a statement to a local newspaper in Sayre with statements to explain his vote. Among his justifications: It was his “constitutional obligation” to vote for it, to “steady a sinking financial ship.” Yaw points out he voted for the original impact fee and that over time, revenue from that fee has trailed off, creating the need for a new revenue source (from the Marcellus industry) to replace it. The severance tax fits the bill for Yaw. Here is how Sen. Yaw justifies his vote…
Read More “PA Sen. Gene Yaw Defends Vote for Severance Tax”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

Sisters of the Corn Say Fight to Stop Atlantic Sunrise Not Over
August 31, 2017August 31, 2017

We don’t often highlight news from the Amazon-owned Washington Post, since much of its reporting is fake news (outright lies, many times), but this time we couldn’t resist. A Washington Post article published yesterday appears to contain at least some truth–about a group of Lancaster nuns. We’ve previously written about a group we call Sisters of the Corn. They stuck a few wooden park benches in the middle of a corn field that they own (leased to a local farmer), and called it a “chapel” so they can claim the planned Atlantic Sunrise Pipeline that will go through that field violates their so-called religious freedom. It’s a sham–backed by local radicals calling themselves Lancaster Against Pipelines. As we reported on Monday, a PA judge, in an eminent domain case, ruled against the Adorers of the Blood of Christ (see Lancaster Sisters of the Corn Lose Bid to Stop Atlantic Coast Pipe). However, the Sisters have also filed a frivolous federal lawsuit claiming religious freedom violation, which could still go in their favor, odds about 99 to 1 against (see Lancaster Nuns Sue FERC to Stop Atlantic Sunrise Pipeline). If all else fails, the radical antis that the Sisters have aligned themselves with are pledging to sit their rear-ends in the middle of the corn field and “pray” (who knows to whom?) in a bid to prevent construction of the pipeline through the field. That is, they will engage in an illegal activity requiring police involvement to remove them–which of course will create a media circus. The kicker: the Sisters operate a retirement community on the same property–heated by natural gas…
Read More “Sisters of the Corn Say Fight to Stop Atlantic Sunrise Not Over”
Empire Pipeline | Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Statewide NY

NFG Tells Court Constitution Decision DNA to Northern Access Case
August 31, 2017August 31, 2017

Yet more drama and intrigue in National Fuel Gas Company’s (NFG) lawsuit against the New York Dept. of Environmental Conservation (DEC). Three years ago NFG proposed and filed to build the Northern Access Pipeline project–a $455 million project includes building 97 miles of new pipeline along a power line corridor from northwestern Pennsylvania up to Erie County, NY. The project also calls for 3 miles of new pipeline further up, in Niagara County, along with a new compressor station in the Town of Pendleton. The Federal Energy Regulatory Commission (FERC) granted final approval for the project in February of this year (see NFG’s Northern Access Pipe in NY/PA Gets FERC Approval). However, in April of this year, the DEC ruled against granting the project stream crossing permits, effectively killing it, at least for now (see Cuomo’s Corrupt NY DEC Blocks NFG Northern Access Pipeline Permit). NFG sued the DEC in the Second Circuit of the U.S. Court of Appeals to overturn their denial (see NFG Sues NY DEC in Fed Court re Northern Access Pipe Rejection). A similar court case was filed by the Constitution Pipeline against the DEC with the 2nd Circuit. The court ruled against the Constitution and for the DEC on August 18 (see Court Rejects Constitution Pipe’s Case Against NY DEC; Now What?). Predictably, the office of NY’s corrupt Attorney General, Eric Schneiderman, filed a letter with the 2nd Circuit (copy below) saying, in essence, the Constitution case is just like this one, so the court should rule the same way: against NFG and for the DEC. However, a few days after that, NFG’s attorneys filed their own letter (copy below) pointing out the fallacy in the previous letter. NFG says the Constitution is very narrow, and in fact ultimately supports the NFG case against the DEC…
Read More “NFG Tells Court Constitution Decision DNA to Northern Access Case”
Energy Services | Industrywide Issues | Litigation | Pipelines | Transco | Williams

FERC Fights NJ Town Effort to Decertify Garden State Expansion
August 31, 2017August 31, 2017

Two New Jersey towns have sued in federal court, seeking to overturn a decision by the Federal Energy Regulatory Commission (FERC) to approve Williams’ Transco Garden State Expansion pipeline project. MDN brought you the happy news in April 2016 that three Obama-appointed FERC commissioners had approved the $116 million project (see FERC Approves NJ Pipeline – More Marcellus Gas on the Way!). The project was created to address supply disruptions following Superstorm Sandy in 2012. By upgrading compressor stations and adding a new meter station, the Garden State Expansion project will supply an extra 180 million cubic feet per day (MMcf/d) of natural gas to “a new delivery point on Transco’s existing Trenton Woodbury Lateral pipeline” (see NGI’s Shale Daily). Two towns in Burlington County (Bordentown and Chesterfield) where some of the work would be done for Phase 2 of the project filed a lawsuit asking the U.S. Court of Appeals for the Third Circuit to overturn FERC’s previous decision to allow the project. FERC has just responded (copy below) arguing they carefully considered the project, crossing all “T”s and dotting all “I”s before they authorized the project. Phase 1 of the project will likely go online next week. Phase 2 is due to be online by next summer, provided the 3rd Circuit doesn’t screw it up…
Read More “FERC Fights NJ Town Effort to Decertify Garden State Expansion”
Accidents | Anti-Drilling/Fossil Fuel | Dauphin County | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Regulation | Sunoco Logistics

Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill
August 31, 2017August 31, 2017

Will anti-fossil fuel Big Green groups succeed in turning a molehill into a mountain? That’s what they are attempting to do with the latest tiny spill (50 gallons) of drilling mud by Sunoco Logistics Partners in underground drilling work for the Mariner East 2 pipeline project in Dauphin County, PA. Over the past several months, Sunoco has experienced some “inadvertent returns” (i.e. leaks) of drilling mud at various locations. One of those was in Chester County, where a serious leak temporarily fouled a water aquifer and clouded drinking water for 15 local households (see Sunoco Stops ME2 Drilling in Chester County Following Water Issue). Sunoco took extraordinary steps to make it right, going so far as to pay to run municipal water to affected homeowners. Earlier this month Sunoco struck a deal with several Big Green groups to provide stricter regulation for ME2’s underground drilling (see Sunoco Strikes Deal with Devil, “Settles” with Anti Groups re ME2). Part of the deal says if Sunoco experiences two leaks of drilling mud at the same location, they must shut down drilling in that location and wait for the state Dept. of Environmental Protection to further review drilling plans before they can restart. On August 24th there was a 50-gallon drilling mud spill into the Susquehanna River in Dauphin County related to ME2. (A quick reminder: drilling mud, or “bentonite,” is non-toxic–the same stuff found in toothpaste and kitty litter). Thing is, there was another spill of 495 gallons at the same location a week earlier. Antis say Sunoco must now shut down drilling in that spot until further notice. Sunoco is saying that particular location was not part of the signed agreement…
Read More “Big Green Group Makes Big Deal Out of Tiny ME2 Mud Spill”
CNG/LNG | Industrywide Issues

Trinidad LNG Exports Continue to Fall – New England Shortage?
August 31, 2017August 31, 2017

From time to time we sound the alarm that New England’s primary supply of natural gas, which comes via LNG tankers from Tinidad & Tobago, is in danger of drying up. New England continues to pay prices 3-4 times higher than the rest of the country for their natgas–due to lack of supply. That hasn’t (and won’t) change, until more supplies make it to New England, either by pipeline or ship. Opponents of new pipelines to New England have included LNG importers in the region. Specifically, GDF Suez imports Trinidad gas at the Everett, MA LNG import terminal, near Boston (see New England Importer Received 59% of All LNG Ship Imports 1H15). LNG imports are one of the primary sources of natgas for New England. Antis holler and scream, “Forget the pipelines. If you must use gas, use LNG. There’s more than enough LNG to supply New England.” In a macro sense that may be true, the world is awash in LNG. But arranging shipments and sources for it takes months, even years. And it costs more to get natural gas via LNG shipments than it does via pipelines. Right now most of the LNG GDF Suez imports come from Trinidad. As we pointed out in an article last year, Trinidad’s natural gas sources are drying up (see Is New England Heading for Huge NatGas Price Spike this Winter?). The country is exporting less and less. We have yet more evidence of that. Trinidad’s natural gas production decreased another 9% during the first half of this year. Again we sound the alarm! New England is heading for a natgas shortage…
Read More “Trinidad LNG Exports Continue to Fall – New England Shortage?”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Aug 31, 2017
August 31, 2017August 31, 2017

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: High price of energy political correctness in NY; PA natgas industry misrepresented by antis; FERC denies request to half KM’s Connecticut Expansion project thru Otis State Forest; Louisiana leading the way in LNG; Harvey’s impact on the energy market substantial; Harvey to disrupt energy markets around the world; shale fracking frenzy cools in Canada; Mexico publishes first natgas price index; and more!
Read More “Marcellus & Utica Shale Story Links: Thu, Aug 31, 2017”
Industrywide Issues | Pennsylvania | Research | Statewide PA

PA 2Q NatGas Production Report – Another New Record
August 30, 2017April 20, 2022

It continues to be another banner year for natural gas production in Pennsylvania, going by the latest quarterly production report. Yesterday, the PA Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for May-Jun 2017 (full copy below). It shows natgas production rose 3.8% compared to the same period last year. It also shows the number of producing wells is up 7.5% from last year. Total natural gas production volume was 1,315.7 billion cubic feet (Bcf) and the number of producing wells in 2Q17 was 7,853. Perhaps the biggest news is that 2Q17 saw the highest quarterly production–ever. Another interesting fact from the latest report: Four counties (Susquehanna, Washington, Bradford and Greene) comprised two thirds (68%) of statewide production. All counties except Greene and Lycoming registered production gains. The #1 county for natgas production in 2Q17? Susquehanna County. The #1 driller in that county? Cabot. You might say, with some justification, that the success of Cabot’s drilling program in Susquehanna County has translated into success for all of Pennsylvania…
Read More “PA 2Q NatGas Production Report – Another New Record”
Energy Services | EnLink Midstream | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Statewide WV | Trucking | West Virginia

Midstreamer E2 Energy Gets Major Investment from Tailwater Capital
August 30, 2017August 30, 2017

E2 Energy Services, which operates numerous natural gas processing facilities in the Marcellus/Utica, has just recapitalized “through an equity commitment from Tailwater Capital.” MDN first heard of E2 back in October 2014 when EnLink Midstream transferred ownership (“dropped down”) its investment in E2 Appalachian Compression, LLC and E2 Energy Services, LLC from one EnLink corporate entity to another (see EnLink Midstream’s Primary Focus in the Marcellus/Utica is…). EnLink, at least in 2014, owned a majority interest in E2–so we consider E2 a subsidiary of EnLink. Now comes word that a private equity investment company, Tailwater Capital, has committed a big slug of money, although we are not given the amount. When a company like E2 “recapitalizes” that typically means the company is swapping debt (bonds and notes) for equity (stocks). The announcement from E2 does not share the exact nature of the recapitalization. Below is the announcement, along with a list of E2’s assets and operations in the Marcellus/Utica region…
Read More “Midstreamer E2 Energy Gets Major Investment from Tailwater Capital”
Pennsylvania | Potter County

Potter County, PA Could Support 3K+ Shale Wells, Theoretically
August 30, 2017August 30, 2017

When it comes to shale drilling in the northern-tier of Pennsylvania, counties like Susquehanna (#1 producing county in the state), Bradford (#3 producing county) and event Tioga (#7 producing county) may come to mind. But what about the county west of Tioga–Potter County? Potter isn’t even in the top 10 producing counties in the state. But that doesn’t mean there’s not shale drilling activity. In July MDN reported that JKLM Energy (owned by Buffalo Bills owner Terry Pegula) is in the process of drilling a dozen Utica wells in Potter this year (see JKLM Drilling 12 Utica Wells in Potter County, PA This Year). The residents in the county are being proactive about promoting shale drilling in Potter. They’ve formed the Potter County Natural Gas Resource Center Steering Committee, complete with its own website. At a recent meeting of the Steering Committee, Penn State’s Jim Ladlee told attendees that Potter County could, theoretically, support 3,000+ shale wells. That certainly doesn’t mean it will ever see that many, but what it does indicate is that there is potential in Potter County far beyond the dozen or so shale wells currently planned. Here’s a report from the meeting…
Read More “Potter County, PA Could Support 3K+ Shale Wells, Theoretically”
Electrical Generation | Industrywide Issues | Lawrence County | Pennsylvania

South Jersey Resources to Manage NatGas Supply for W PA Elec Plant
August 30, 2017August 30, 2017

South Jersey Resources Group has cut a five-year deal to provide natural gas for the Hickory Run Energy Station in Lawrence County, PA. Just two weeks ago MDN told you that the Hickory Run Energy Marcellus gas-fired electric plant planned for Lawrence County appears to be active and moving forward once again (see Signs of Life in Lawrence County, PA NatGas-Fired Electric Plant). Tyr Energy, a subsidiary of ITOCHU Corporation, purchased the Hickory Run Energy project in 2016 from LS Power Development. South Korea’s KB Asset Management announced they are investing $150 million in the project, which we said is “a sure sign that the pieces are now coming together for construction to begin.” Little did we know how prophetic those words were. Two days later, another report in the Korean Investors publication reported that French banking giant BNP Paribas has originated $460 million worth of loans for the project–of which the KB Asset Management investment is part (see Ground Broken for Lawrence County, PA NatGas-Fired Electric Plant?). The article also reported, “Ground has been broken for the plant.” Cool. Now another piece of this fast-moving puzzle falls into place. South Jersey Resources will contract for and supply natural gas to the plant, when it fires up…
Read More “South Jersey Resources to Manage NatGas Supply for W PA Elec Plant”
Centre County | Clinton County | Juniata County | Mifflin County | Pennsylvania | Perry County

Central PA Counties form Co-op to Expand NatGas Service Locally
August 30, 2017August 30, 2017

Juniata County just became the fifth central Pennsylvania county to join the SEDA-COG Natural Gas Cooperative. SEDA-COG stands for Susquehanna Economic Development Association – Council of Governments. Collectively, SEDA-COG is a group of 11 central PA counties. The other four counties that belong to the Natural Gas Cooperative include Clinton, Centre, Mifflin, and Perry. So what’s the big deal about this group? In 2013 MDN reported that SEDA-COG was working on an initiative to bring natural gas to more residents and businesses in their collective 11-county region (see Central PA Counties Cooperate on Infrastructure for More Gas Use). That cooperative effort eventually, in early 2016, gave birth to the SEDA-COG Natural Gas Cooperative group. Between 2014-2016 SEDA-COG conducted two studies to identify key targeted investment areas for establishment or expansion of natural gas service in its 11 member counties. Earlier this year, they issued a final report (full copy below). The report outlines ways in which the counties can cooperate to bring new gas infrastructure (distribution pipelines) to the region–delivering gas to homes and businesses. It is local government at its best, putting their heads together to benefit the entire region. The great news is that these central PA counties either have local shale wells, or are situated close to abundant shale production in nearby counties. Now it’s just a matter of getting folks hooked up to the gas…
Read More “Central PA Counties form Co-op to Expand NatGas Service Locally”
Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Range Resources Corp | Regulation

Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well
August 30, 2017August 30, 2017

Range Resources and the Pennsylvania Dept. of Environmental Protection (DEP) have officially “settled” something we thought was already settled–alleged methane migration from a well Range drilled in 2011. In June 2015, then-Secretary of the DEP, John Quigley, slapped Range with an $8.9 million fine–the largest such fine ever levied by the DEP (see PA DEP Slaps Range with Record $8.9M Fine for Methane Migration). Range’s enviro crime? Methane migration from a well in Lycoming County, PA. The DEP says the Range well, drilled in 2011, leaked methane since at least 2013 via an improperly cemented well casing, and the methane “contaminated the groundwater-fed wells of private water supplies, and a nearby stream.” Range and the landowner where the well is drilled say methane was in groundwater supplies long before Range drilled the well. Range fought the action tooth and nail, appealing the determination and fine to the PA Environmental Hearing Board (see PA DEP’s $8.9M Methane Migration Fine Appealed by Range Resources). In May 2016, the DEP quietly dropped the fine and the case against Range (see PA DEP Drops $8.9M Fine Against Range Res. re Methane Migration). We assumed that was the end of the matter. But alas, no. We now, finally, have an end. Both Range and the DEP filed paperwork with the Environmental Hearing Board (a special court set up to hear appeals of DEP decisions) requesting the matter now officially be closed and “settled.” The paperwork (copy below) does not say what the terms of the settlement are. Both Range and the DEP are being mum about the terms…
Read More “Range & PA DEP Settle re Alleged Methane Leak at Lycoming Well”