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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”

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    New MarkWest Processing Plant Approved by Smith Twp in SWPA

    Smith Township, Washington, PA

    In August MarkWest Energy (now part of MPLX) briefed Smith Township (Washington County, PA) officials on plans to build a new natural gas processing plant (see Update on MarkWest Processing Plant Proposal for Smith Twp). The project was first introduced last fall, but then went quiet until May of this year. MarkWest plans to initially building one cryogenic plant and one de-ethanizer at what it calls the Harmon Creek Complex. Eventually MarkWest wants to build four cryogenic plants and two de-ethanizers at complex. Smith officials understandably had questions and wanted certain things in writing before they would consider issuing a “conditional use” permit for the project. Apparently the questions got answered. On Monday, Smith supervisors voted 3-0 to approve the project. However, the backhoes are not firing up just yet. Before the project can get built, the PA Dept. of Environmental Protection must issue an air permit (GP-5) for the project. Anti fossil fuelers were not happy with Smith’s approval, claiming MarkWest has been hiding the full scope of the project…
    Read More “New MarkWest Processing Plant Approved by Smith Twp in SWPA”

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    PA Gov. Wolf Visits NEPA to Barter for Marcellus Severance Tax

    Hoping to pressure the Republican legislature to adopt a budget with a new severance tax, Pennsylvania Gov. Tom Wolf (Democrat) visited two towns in northeast PA yesterday that are in the heart of Marcellus Shale country. One of those towns is the bucolic village of Tunkhannock, in Wyoming County. MDN editor Jim Willis visited Tunkhannock a few months ago to attend an Atlantic Sunrise Pipeline rally (see Atlantic Sunrise Pipe Rally: ‘Time to Kick Politicians in the Ass’). During his visit yesterday, Wolf said there has been progress in the budget talks, but things are stalled at the moment. The big point Wolf made, the reason for the visit, is that $1 million of state money promised to Tunkhannock to run gas lines in the area for local utilities to tap into abundant, local Marcellus gas is on hold because of the budget impasse. Wolf was dangling a $1 million carrot, implying that if the local yokels want that money to run new gas lines, they dang well better support his plan to pass the budget–a plan that includes a severance tax on the Marcellus. That’s how we read it. From Tunkhannock, Wolf traveled north to Montrose, in Susquehanna County, where he visited the Endless Mountains Hospital–a hospital largely built with Marcellus money from Cabot Oil & Gas. If Wolf’s severance tax had been in place, that hospital would not have gotten built…
    Read More “PA Gov. Wolf Visits NEPA to Barter for Marcellus Severance Tax”

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    PennEast Pipe Files Water Permit Request with USACE, Antis Erupt

    Click map for larger version

    Last week PennEast Pipeline, a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ, filed a request with the U.S. Army Corps of Engineers for water crossing permits (full copy below). PennEast has faced a series of legal challenges–in particular from virulent Big Green groups THE Delaware Riverkeeper (Maya van Rossum) and the New Jersey Sierra Club (Jeff Tittel). Somehow Big Green groups seem to have been able to exert undue influence over the New Jersey Dept. of Environmental Protection, which rejected granting water permits in June (see NJ DEP Rejects Water Permit for PennEast Pipeline – What’s Next?). However, PennEast continues to make progress. In April the Federal Energy Regulatory Commission (FERC) issued a favorable, final environmental impact statement for the project, which is typically a prelude to issuing a final go-ahead (see FERC Issues Favorable Final EIS for PennEast Pipeline Project). Earlier this year, in February, the Pennsylvania Dept. of Environmental Protection issued a water permit for the project, which is being challenged in court by Big Green groups (see PennEast Pipeline Gets 401 Water Quality Certificate from PA DEP). PennEast acknowledges the Army Corps will still need information from other government agencies before it grants a water permit–but that’s OK. PennEast is simply getting its ducks in row by filing now, which has antis like van Rossum and Tittel in a dither…
    Read More “PennEast Pipe Files Water Permit Request with USACE, Antis Erupt”

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    Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic

    Rich, snobbish homeowners in an “upscale” Philadelphia suburb development are asking an appeals court to stop Sunoco Logistics from building the Mariner East 2 pipeline through the edge of their high-priced development because, they claim, the digging is disturbing the dirt (which is what digging does) and disturbing the dirt is causing lead and arsenic to become dislodged. The lead and arsenic are supposedly in the dirt as a result of pesticides used when the land was an apple orchard. The claim is flat out BS–Barbara Streisand. The Andover Homeowners Association in Thornbury Township (Delaware County) is the same group that a few weeks ago acted like five year-olds by intentionally stepping over a painted line put there to protect them from a ME2 construction zone (see Philly Antis Step Over the Line (Literally) at ME2 Pipeline Site). Spoiled rotten children grow up to be spoiled rotten adults. Here’s the latest tactic to stop a pipeline from the gentry class–just because they don’t like how digging a pipeline makes their development look to the neighbors…
    Read More “Rich Homeowners in Philly Suburb Claim ME2 Work Stirring up Arsenic”

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    North Carolina Fracking Commission Postpones First Meeting

    In 2012 the North Carolina legislature cleared the way for the state to allow horizontal fracking of shale (see NC Law to Legalize (and Encourage) Fracking Advances). The law gave state officials two years to come up with rules and regulations to govern fracking in NC. Along the way a lawsuits were launched, slowing things down (see Judge Puts NC Fracking on Hold Pending Outcome of Lawsuit). The case got resolved in January 2016. However, even if a company wants to begin drilling, members of North Carolina’s Oil & Gas Commission, who would approve applications, have not been sworn in (see NC Fracking Remains in Limbo, 5 Yrs After Legislature Approved It). Nine commissioners were appointed by outgoing Republican Gov. Pat McCrory and the Republican legislature–but new Gov. Roy Cooper (Democrat) refuses to swear in the commissioners and allow fracking to begin. One more Democrat who acts like a dictator. Where have we seen that before? No matter. The new Oil & Gas Commission isn’t waiting for Cooper. The Commission scheduled its first official meeting yesterday, in Sanford. Antis accused the agency of “going rogue” (they should talk!). However, at the last minute, on Tuesday, the Commission’s new chairman, Jim Womack, said the first meeting will be postponed until October or November, to give more time for state ethics officials to review economic disclosure statements of commission appointees for potential conflicts of interest. Looks like it will be six years before any fracking takes place in the Tar Heal State…
    Read More “North Carolina Fracking Commission Postpones First Meeting”

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    Quebec Government Publishes Draft Utica Fracking Regulations

    Although the primary focus of Marcellus Drilling News has always been on Marcellus and Utica Shale gas (and oil) as found in the northeastern U.S., the Utica Shale also underlies part of Canada’s Quebec province. And from time to time we highlight news concerning the Utica in Canada. There hasn’t been much news to highlight over the years since Quebec has had a moratorium on fracking at least as long as New York’s moratorium (NY’s ban as of today has been 9 years, 1 month and 29 days). But as we reported back in December, something of a minor miracle happened–the Quebec National Assembly voted to pass Bill 106, ostensibly to support Quebec’s “clean power plan” (see Fracking in Canadian Utica Shale Takes Big Step Closer to Reality). The bill includes a section that “lays out a framework for oil and gas development” in Quebec. Fracking will not begin immediately. The bill does, however, mean that new regulations will come along in 2017 and after that, it’s an almost certainty that fracking will begin. Those draft rules have finally been released (full copy of the 266-page document below), nearly 10 months later. Questerre Energy, which owns Canadian Utica leases in Quebec and has long lobbied get the government to allow Utica drilling, shares the good news that we have taken another step closer toward fracking in Quebec…
    Read More “Quebec Government Publishes Draft Utica Fracking Regulations”

  • Marcellus & Utica Shale Story Links: Thu, Sep 21, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: DRBC’s fracking ban is immoral AND illegal; ‘for sale’ sign out on Ultra Petroleum; OH rig count stays at 23; San Fran and Oakland go berserk, sue 5 oil companies for climate change; FERC holds first open meeting since quorum restored; Sen. Inhofe intros legislation to make FERC lead agency in pipeline approvals; US has way more natgas that estimates say; Big Oil gets greener, cuts emissions; Asian countries have big natgas reserves; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Sep 21, 2017”

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    3 Pipelines About to Change Marcellus/Utica, Spur More Drilling

    Every now and again it’s helpful to step back and look at the big picture, in particular with respect to major pipeline projects. These projects have a deep and profound effect on drilling. In fact, the addition of just three pipelines in our region (currently under construction) will fundamentally change the price of gas in the Marcellus/Utica region–and ultimately lead to more drilling. How so? As part of an article on the Seeking Alpha investor’s website, author and investor Callum Turcan wrote about “Why Appalachia Matters” in which he details that three pipeline projects already getting built will provide an extra 6.45 billion cubic feet per day (Bcf/d) of capacity to flow our natural gas out of this region to other regions. Some of that capacity is already happening, with a partial startup of Rover Pipeline. When Rover is completed in early 2018, it will flow 3.25 Bcf/d of natural gas out of our region. Massive! In addition, Atlantic Sunrise is now under construction and when it is completed by the middle of 2018, it will flow 1.7 Bcf/d of gas out of the area. Finally, Leach XPress is due to be done by the end of THIS YEAR, and when it is, it will flow an extra 1.5 Bcf/d of gas out of the area. What will be the response? It’s pretty easy to predict that (a) prices for our gas will go up, and when prices go up, (b) drillers will complete wells already drilled but not yet completed (DUCs), and then (c) begin to drill more new wells. Those three pipelines aren’t the only ones that will get built…
    Read More “3 Pipelines About to Change Marcellus/Utica, Spur More Drilling”

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    WV State Agency Rejects Anti Appeal to Stop US Methanol Plant

    Antis in West Virginia who filed an appeal of a permit allowing US Methanol to build a plant in Institute, WV have been rejected by the WV Air Quality Board. Earlier this month US Methanol broke ground in Institute (Kanawha County), WV for its very first methanol production plant (see US Methanol Breaks Ground on First Plant in West Virginia). This is the first of what is rumored to be up to five such methanol plants to be built in the Mountain State by US Methanol. Methanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze, plastic bottles–even LED and LCD screens. A number of dignitaries attended the groundbreaking in Institute, including colorful WV Governor Jim Justice. People Concerned, a Big Green group, has painted nightmare scenarios that “if” a 1.2 million gallon methanol holding tank explodes, it’s the end of the world for anyone and everyone in the Institute area. In an unbelievable act of disgust, the attorney for People Concerned “reminded” the Air Quality Board that the location of the US Methanol plant is located next to “a historically black university”–implying there’s something racist about the plant and the so-called safety threats it may hold for black students. Loathsome. Fortunately the Air Quality Board refused the appeal by People Concerned, meaning the plant will continue construction as planned, going online by mid-next year…
    Read More “WV State Agency Rejects Anti Appeal to Stop US Methanol Plant”

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    PA Dem Senator Calls for “Study” to Address DEP Permit Delays

    A Pennsylvania Senator from Wilkes-Barre, John Yudichak (Democrat) has floated a “memoranda” among his Senate colleagues asking them to join him in sponsoring a resolution (copy below) for an “independent performance review” of the state Dept. of Environmental Protection (DEP) and its shale permitting program. Since Tom Wolf assumed office as governor of Pennsylvania in January 2015, the DEP has been in a downward spiral when it comes to the speed with which they approve permits for the Marcellus Shale industry. The DEP has a policy of issuing erosion and sedimentation permits 14 days from the date of application. These types of permits are common and necessary when building roads, well pads, etc. Lately it has taken the DEP 250 days to issue those permits! Permits related to drilling wells are supposed to take no more than 45 days. Those permits now average 93 days. The DEP is hopelessly backlogged–and it’s getting worse. When PA’s traitorous Republican Senate sold out and signed on to a Marcellus Shale severance tax back in July, the Senate also approved (as part of the budget bill) fixes to speed up the permitting process (see PA Senate’s “Olive Branch” of “Relaxed Regulations” for Drillers). Senators included a provision to have third party contractors–people outside of the DEP–review applications at the DEP, including permits for oil and gas drilling, when the DEP can’t review those applications in a timely manner. There’s also a provision that certain permits, like those granted to drillers for sediment and erosion, will automatically be granted if the DEP drags its feet and doesn’t grant the permit by the current, specified deadline (45 days, with a possible 15 day extension). Since DEP can’t seem to fix its own mess, the Republican Senate is willing to “lend a hand” to help them get it done. Democrats are adamantly opposed to the plan. Enter Yudichak and his plan to “study” the situation. This is nothing more than a typical delay and stall tactic. Appear to be addressing the problem when you really aren’t. To which we say–“too much, too little, too late” Sen. Yudichak. Your guy (Wolf) has had nearly three years to fix it and he hasn’t–it’s time to let the Republican legislature get the job done…
    Read More “PA Dem Senator Calls for “Study” to Address DEP Permit Delays”

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    Atlantic Sunrise Gets Ready to Cross 5 Towns in Lebanon County, PA

    As MDN reported yesterday, construction work on two compressor stations part of the Williams $3 billion Atlantic Sunrise Pipeline project began last Friday, the same day the Federal Energy Regulatory Commission (FERC) gave the project permission to begin construction (see Williams Breaks Ground on Atlantic Sunrise Pipe, Ahead of Schedule). Next up will be digging to lay the pipeline itself. The Lebanon Daily News reports residents in Lebanon County can count on seeing activity there “any day now.” The article names the five townships where the pipeline will cross, and says first up will be staging of equipment, then tree clearing, and finally (perhaps in mid-to-late October) the pipeline itself will get laid in the ground. A few antis in Lebanon have been quite vocal against the project over the past couple of years (see Lebanon County Antis Want Public (Spectacle) Mtg or No Mtg at All). Interestingly, over the past year or so Lebanon antis have been mum. Will we see any nutjobs chain themselves to bulldozers in Lebanon County? We doubt it, but you never know. Depends on whether or not out-of-town Big Green groups send troublemakers into the area. Here’s the list of five towns fortunate enough to see the Atlantic Sunrise, along with the list of four contractors hired to build the pipeline…
    Read More “Atlantic Sunrise Gets Ready to Cross 5 Towns in Lebanon County, PA”

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    Sprague Expands Fueling Footprint in Marc/Utica, Buys Coen Energy

    Here’s a business you might not think about nor associate with Marcellus/Utica drilling–fuel deliveries. If you own a home and live outside of an urban area, you know all about fuel deliveries, because you likely either burn fuel oil or propane to heat your home. What you may not know is that drilling operations need a similar service–diesel fuel deliveries (mostly) at drill pads, to run the engines that generate electricity to run drilling and fracking operations. And fuel deliveries to trucking fleets, to keep the trucks moving. Perhaps an unglamorous part of the business–but vital nonetheless. Fuel deliveries run 24/7 in the oilfield, just like every other activity associated with drilling wells. Sprague Resources, founded in 1870 (not a typo!), is one of the largest independent suppliers of energy and materials handling services in the Northeast with products including home heating oil, diesel fuels, residual fuels, gasoline and natural gas. Sprague has just bought out Coen Energy, headquartered in Washington, PA. Coen pretty much does the same thing, but specializes in servicing the fueling (and storage) needs of Marcellus/Utica drillers. No financial details were included in the announcement, other than Sprague expects the addition of Coen to its company will result in an extra $7-$8 million of revenue per year. Here’s the news about one competitor gobbling up another in order to expand its presence in the Marcellus/Utica…
    Read More “Sprague Expands Fueling Footprint in Marc/Utica, Buys Coen Energy”

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    Rover Pipeline: Growing the Pie, or Stealing Slices from Others?

    Rover Pipeline–$3.7 billion, 711-mile natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada–starting flowing natural gas through a portion of the pipeline on Sept. 1st (see Big Portion of Rover Pipeline Now Up & Running – Thru Most of Ohio). Since then, Phase 1A of the pipeline has steadily increased its throughput and now flows over 700 million cubic feet per day (MMcf/d) of yummy Utica/Marcellus Shale gas to Defiance, OH. But where does that gas come from? Have a bunch of drillers suddenly flipped a switch and turned on new wells to fill that capacity? Well, to some degree that has happened. There is certainly new gas finding its way through Rover–but most of the gas flowing through Rover comes at the expense of flowing through other pipelines. Several other pipelines in the region are giving up some of their gas according to the experts at BTU Analytics. Which pipelines? Most of the gas flowing through Rover likely comes from gas that would have flowed through the Texas Eastern Transmission Company (TETCO) pipeline, says BTU Analytics. In addition, REX (Rockies Express Pipeline) and Dominion Pipeline have also lost some business to Rover. Here’s how Rover has changed the supply/demand landscape over the past three weeks…
    Read More “Rover Pipeline: Growing the Pie, or Stealing Slices from Others?”