Marcellus Drilling News

Antero Resources | Chesapeake Energy | CONSOL Energy | Coterra Energy (Cabot O&G) | Energy Companies | EQT Corp | Gulfport Energy | Industrywide Issues | NGLs | Southwestern Energy

M-U’s Biggest Drillers Increase NGL Production for Extra Money
September 1, 2017September 1, 2017

When a driller sinks a hole in the ground looking for one hydrocarbon–like natural gas–other hydrocarbons also come out of the ground. Sometimes its oil. Sometimes condensate. Sometimes natural gas liquids (NGLs), including ethane, propane, butane, pentane, etc. In northeast and central Pennsylvania where the Marcellus Shale is prolific, most of what comes out of the ground is just methane–or natural gas. However, in the southwestern portion of PA, and in the northern panhandle of WV and on into eastern OH, it’s a different story. They are considered “wet gas” areas because (depending on the county) the wells are prolific NGL producers. Most NGLs, like propane, fetch much higher prices than plain old methane. Typically ethane is the NGL that mostly comes out of the ground, but for many drillers ethane can’t (yet) be sold, so it’s considered a “waste” product, mixed into the methane stream to get rid of it. But that’s changing. There are now pipelines to carry ethane to facilities in both Philadelphia and to a cracker plant in Canada. There’s even a pipeline for ethane (and other NGLs) that goes all the way to the Gulf Coast (ATEX, Appalachia to Texas). Some of the largest Marcellus/Utica drillers now have markets for their NGLs, so they are ramping up production and selling more NGLs. In fact, six of the eight largest M-U drillers increased their NGL production in the second quarter of 2017 compared to 2Q16. Which six increased, and which two decreased NGL production last quarter?…
Read More “M-U’s Biggest Drillers Increase NGL Production for Extra Money”
Belmont County | Energy Services | Ethane | Industrywide Issues | Ohio | Processing Plants | PTT Global

Ohio Congressman “Extremely Optimistic” PTT Will Build Cracker
September 1, 2017September 1, 2017

We’re always on the lookout for news about a final investment decision by PTT Global Chemical to build a $5 billion ethane cracker in Belmont County, OH. Recently PTT spent $13.8 million to buy 168 acres at the proposed cracker plant site (see PTT Global Buys Land for Belmont, OH Ethane Cracker Plant). The company then optioned more land surrounding the site they just purchased (see PTT Global Buying Land Next to Proposed Ohio Cracker Site). Those are VERY positive signs in our book. Here’s another positive sign. OH Congressman Bill Johnson, whose district includes the location for the proposed PTT cracker plant, recently told members of the Ohio Valley Oil and Gas Association that he is “extremely optimistic” that the project will get built. On what does Congressman Johnson base his optimism?…
Read More “Ohio Congressman “Extremely Optimistic” PTT Will Build Cracker”
Crestwood Midstream | Energy Services | Industrywide Issues | New York | NGLs | Orange County | Trucking

Crestwood’s Orange County, NY Rail NGL Terminal Opens Sept 6
September 1, 2017September 1, 2017

Crestwood concept drawing for rail terminal in Orange County, NY – click for larger version

In February MDN told you we had made a discovery in reading through Crestwood Equity Partners (formerly known as Crestwood Midstream) quarterly update: the company is “developing a greenfield rail-to-truck NGL terminal in Montgomery, NY that will increase propane supply reliability across the Northeast markets” (see Crestwood Building Rail-to-Truck NGL Terminal in Orange County, NY). The terminal will come from “multiple producers in the Marcellus and Utica regions.” At that time, Crestwood was in the process of building the terminal, which will handle propane, in Orange County, NY–not far from New York City. Given NY’s allergy to any project related to fossil fuels, we found the news quite incredible. Something even more incredible: the terminal is done and the grand opening will happen next Wednesday, Sept. 6th…
Read More “Crestwood’s Orange County, NY Rail NGL Terminal Opens Sept 6”
Air Quality | Industrywide Issues | Pennsylvania | Regulation | Research | Statewide PA

PA DEP Reports: Air Emissions from Shale Industry Improved in 2015
September 1, 2017March 5, 2018

The Pennsylvania State Dept. of Environmental Protection (DEP) keeps track of emissions from various sources–including the shale industry. When drillers drill and pipeline companies pipe, the equipment used leaks some nasty stuff into the air. Frankly it’s no different for any industrial activity or business. Even homes. We all emit stuff into the air. The question is, how much do we emit and does it rise to the level of being harmful? Yesterday the DEP released air emissions numbers for the shale industry for 2015–the most recent year in which they have completed data. What does it show? According to DEP Secretary Pat McDonnell, it presents a “mixed picture.” Some of the nastiest pollutants, like nitrogen oxides (NOx), sulfur dioxide (SOx) and particulate matter (PM2.5), decreased from 2014 levels. Some things like methane (natural gas, considered a “pollutant” if it escapes into the atmosphere where it’s said to contribute to mythical global warming) are increasing. Because methane is increasing, McDonnell says more needs to be done to stem the leaking. On balance, this report looks pretty good to us–pollution from the gas industry (the things that really matter like NOx, SOx and PM2.5, are decreasing. A reason to celebrate the good work being done by the industry…
Read More “PA DEP Reports: Air Emissions from Shale Industry Improved in 2015”
Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018
September 1, 2017September 1, 2017

It looks like Pennsylvania’s conventional (non-shale) oil and gas drillers will get a reprieve from onerous new drilling rules–at least until next year. PA Gov. Tom Wolf has been obstinate in demanding onerous new drilling rules for the conventional, as well as unconventional (shale) drilling industry since he took office. Reworked drilling rules for both conventional and shale drillers were done and ready to go under previous Gov. Tom Corbett. Then Corbett lost to Wolf, and Wolf demanded changes to the common sense rules everyone had already agreed to (see New Draft Drilling Regulations in PA: Wastewater Impoundments Out). Wolf’s changes for conventional drillers threatened to run PA’s traditional, small conventional drillers out of business by applying the same regulations to them that will apply to shale drillers. The Pennsylvania Independent Oil & Gas Association (PIOGA) represents many of those small conventional drillers and vigorously fought back (see PIOGA Turns Up the Heat on Wolf/Quigley Over TAB/Chapter 78 and PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). In the end, Wolf’s own Democrat Party legislators in the House and Senate abandoned him and the writing was on the wall: The entire package of drilling rules, for both conventional (Chapter 78) and shale (Chapter 78a) was headed for defeat. The legislature was about to repeal both sets of newly-minted DEP rules–so in 2016 Wolf pivoted and decided to accept half a loaf–passage of the shale rules, Chapter 78a (see Wolf Really Didn’t Wise Up, He Just Took Half a Loaf re Drilling Regs). Since that time, we’ve not heard much about Chapter 78, which applies to conventional drillers. In the August 19 Pennsylvania Bulletin, the DEP published a short notice to say the agency will now wait until late 2018 before attempting changes to Chapter 78 for conventional drillers…
Read More “PA DEP Plans Redo of Chapter 78 Conventional Well Regs in 2018”
Air Quality | Beaver County | Energy Companies | Ethane | Industrywide Issues | Litigation | Pennsylvania | Processing Plants | Regulation | Shell

Did Shell Pull a Fast One on Big Green Groups re Air Permit?
September 1, 2017September 1, 2017

Earlier this week MDN reported that Shell had settled an action brought by Big Green groups against an air permit issued for their now under construction ethane cracker plant in Beaver County, PA (see Shell Cuts Deal with Big Green Groups re Cracker Plant Air Permit). In 2015, two Big Green groups–the Philadelphia-based Clean Air Council and the Washington, DC-based Environmental Integrity Project (both disgusting litigation factories) filed a complaint against Shell to block the air quality permit needed to build the $6 billion ethane cracker in Monaca (see Big Green Groups File to Block Shell Cracker Air Quality Permit). The filing came after the state Dept. of Environmental Protection (DEP) approved the air permit for the facility. The two Big Green groups filed an appeal with the state Environmental Hearing Board, a special court set up to hear appeals of DEP decisions. The groups believe the DEP “should have required more stringent monitoring requirements for fugitive air emissions from Shell.” Specifically the groups wanted fence line monitoring. So Shell “caved” and agreed. But in reading an account of the agreement, it dawned on us, reading between the lines, that perhaps this is what Shell planned all along! That is, Shell already planned to do fence line monitoring. The settlement Shell signed earlier this week ensures the Big Green groups can’t bring any further actions with regard to the air permit. We don’t know for sure, but it seems to us like maybe Shell was playing a long game of chess, and knew this kind of action would come, and held back the fenceline monitoring piece until the right time to play it–trading the fence line monitoring pawn for inoculation against future Big Green litigation. Smart…
Read More “Did Shell Pull a Fast One on Big Green Groups re Air Permit?”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 1, 2017
September 1, 2017September 1, 2017

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: 12 permits issued in OH Utica; OH pipelines pump up Wooster Airgas; landowners advised to document (with pics) pipeline impacts; natgas plant vital for Rhode Island; o&g industry fuels…Florida?!…with jobs and revenue; after Harvey, attention turns to Houston petchem infrastructure; oil demand is growing nearly everywhere worldwide; and more!
Read More “Marcellus & Utica Shale Story Links: Fri, Sep 1, 2017”
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?”