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    Atlantic Sunrise Supporters Far Outnumber Antis at PA DEP Hearings

    Yesterday saw the first two (of four) public hearings being hosted this week by the Pennsylvania Dept. of Environmental Protection (DEP) to elicit comments on the proposed $3 billion, 198-mile Atlantic Sunrise Pipeline, an expansion of Williams’ Transco Pipeline system. One of yesterday’s meetings was held in Lancaster (Lancaster County), and the other in Tunkhannock (Wyoming County). The striking thing about both meetings is that they were not the usual circus freak shows by anti-fossil fuelers we’ve come to expect. Indeed, in both venues, an overwhelming majority of those speaking were there to speak IN FAVOR of the projects. Oh, there were detractors, to be sure. Nonsensical statements made by people like Malinda Clatterbuck, one of the locals in Lancaster who is attempting to turn Lancaster into another North Dakota fiasco. Clatterbuck said “angst over the pipeline has caused premature births, divorces and heart attacks” among people she knows. Complete rubbish. Anyone can say (or do) anything at these hearings. Mark Clatterbuck (Malinda’s husband) also spoke. Mark was a protester in North Dakota against the Dakota Access Pipeline. He warned (threatened?) DEP representatives of a coming “community uprising” against the Atlantic Sunrise pipeline. Even though there was some opposition like the clattering Clatterbucks at last night’s hearings, the big news is that their opposition was drowned out by supporters of the pipeline project. And that’s good news for all Pennsylvanians…
    Read More “Atlantic Sunrise Supporters Far Outnumber Antis at PA DEP Hearings”

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    NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe

    We just knew getting a “virtual pipeline” facility built in ultra-liberal Broome County, NY was proceeding a little too easy. MDN recently told you about a proposed virtual pipeline (i.e. natgas trucking system) coming to MDN’s neighborhood. NG Advantage wants to build a new compressor station and tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called virtual pipelines compress natural gas and load it onto tanker trucks, and then distribute that gas to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: LOTS of truck traffic. The Town of Fenton Planning Board recently approved the project and although we thought it wasn’t quite yet a done deal, apparently it is a done deal, as a small group of antis learned earlier this week at a Town of Fenton meeting (see NG Advantage Virtual Pipe “Done Deal” in Broome County, Antis Stymied). However, that may not be the end of it. Antis (in New York as elsewhere) don’t fade away without a LOT of loud-mouthed opposition, and a LOT of legal action. Antis are now pegging their hopes to defeat this fossil fuel intruder on the actions of a local school district. The Chenango Valley School District operates the Port Dickinson Elementary school close to (half mile? quarter mile?) the proposed compressor station for the virtual pipeline project. The CV school board voted last night 8-0 to hire a law firm to fight the project, with no cap on how much in legal fees local taxpayers will have to pay for this folly. The clock is now ticking. It’s quite likely the project will get built before it ever sees its first court hearing–and antis know it…
    Read More “NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe”

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    Rex Energy Crows re Results from New 4-Well Pad in Butler County, PA

    Rex Energy began selling natural gas, gas liquids and condensate from its four newest wells, part of the “Baird” pad (in Butler County, PA) on May 31st. The company issued a press release yesterday to do some well-deserved crowing about their wells. Two of the wells (the 1H and 4H) are Marcellus wells and initial production is averaging 12.1 million cubic feet equivalent per day (Mmcfe/d). The other two wells (the 2H & 3H) target the Upper Devonian layer and initial production for those wells has been 8.1 Mmcfe/d. Rex also posted a new company PowerPoint presentation (full copy below) which shows a new 6-well pad in Butler County will go online to sales in August, another 4-well pad in September, and a 2-well pad and 4-well pad sometime in the fourth quarter. In addition, Rex expects to begin drilling a 3-well pad in the Ohio Utica (in Carroll County) in July…
    Read More “Rex Energy Crows re Results from New 4-Well Pad in Butler County, PA”

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    Trump DOJ Blesses GE Takeover of Baker Hughes, Merging Soon

    During the Obama reign of terror, the world’s #2 largest oilfield services company, Halliburton, tried to buy the world’s #3 largest oilfield services company, Baker Hughes. The Obama Dept. of Justice (DOJ) killed that deal (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). It was a costly mistake for Halliburton–they had to pay Baker Hughes a $3.5 billion breakup fee. Baker Hughes was on a mission to sell itself to someone, and eventually found a new suitor last October: GE Oil & Gas (see Breaking: Who Needs Halliburton? Baker Hughes Merging with GE O&G). Since then the two have worked hard to ensure there will not be a repeat of the Halliburton disaster. Earlier this month we told you that Europe has blessed the deal (see Europe Approves GE Takeover of Baker Hughes, Co Gets a New Name). Now the Trump DOJ has blessed the deal too. GE had to agree to sell its Water & Process Technologies business (called GE Water). Small price to pay. The two maintain that the merger will take place “mid-year”. Since it’s already mid-year, we expect that translates to July or August…
    Read More “Trump DOJ Blesses GE Takeover of Baker Hughes, Merging Soon”

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    EIA June Drilling Rpt: Another New High in Gas & Oil Production

    Yesterday, MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. Get ready to break new records–again! In July, we will once again hit the highest output of shale gas we’ve seen, ever. All seven major plays will produce an amazing 51.7 billion cubic feet per day (Bcf/d) of natural gas, and 5.5 million barrels of oil per day. In the Marcellus, natural gas output will hit 19.4 Bcf/d. In the Utica, output will reach 4.3 Bcf/d. The biggest natural gas story continues to be the Texas Permian–an oil play! When you drill like crazy for more oil, you also get natural gas out of the hole along with the oil. It’s called “associated gas.” And because the Permian is red hot with drilling, it makes sense natural gas production will spike up too. The Permian will add 161 million cubic feet per day (Mmcf/d) of natural gas production in July and hit a total output of 8.5 Bcf/d, now #2 behind the mighty Marcellus…
    Read More “EIA June Drilling Rpt: Another New High in Gas & Oil Production”

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    NatGas Grudge Match II: Marcellus vs Permian

    Competition is good. Last week we told you about the coming competition between the Marcellus/Utica Shale play in Pennsylvania, West Virginia and Ohio, and the Haynesville Shale play in Louisiana (see NatGas Grudge Match: Marcellus vs Haynesville). The Haynesville was not so long ago dead–no new drilling. But that is no longer the case. The Haynesville is gearing up to compete against the Marcellus/Utica (or perhaps it’s the other way around?) to sell gas into the Midwest and along the Gulf Coast. The Marcellus/Utica is getting a flurry of new pipelines to make sales to other regions possible. But the Haynesville is not the only new competition coming for Marcellus/Utica. The Permian Basin shale play, located in Texas, is coming on super strong. Why? As we point out in today’s companion story about EIA’s June drilling report, drillers in the Permian are drilling new oil wells like crazy. Thing is, when you drill a new oil well, you don’t ONLY get oil–you get other hydrocarbons too, like natural gas and gas liquids (propane, ethane, butane, etc.). Because the Permian is drilling so many new oil wells, it’s also causing a flood of new natural gas into the market. The Permian is now the #2 natural gas producing shale play in the U.S., behind the Marcellus. What does this clash of the titans mean? According to one analyst, “Everyone can’t grow and everyone can’t win”…
    Read More “NatGas Grudge Match II: Marcellus vs Permian”

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    WV Sens. Capito & Manchin Introduce 2 More Ethane Storage Hub Bills

    Senator Shelly Moore Capito

    In May, both West Virginia U.S. Senators, Shelley Moore Capito (Republican) and Joe Manchin (Democrat), along with Ohio Sen. Rob Portman, introduced and co-sponsored a bill to study if and how an ethane storage hub can be constructed in the Marcellus/Utica region (see WV/OH Senators Intro Bill to Study Appalachian Ethane Storage Hub). Apparently the issue is more important that just a single bill. Yesterday Sens. Capito and Manchin introduced/sponsored another new bill. Called the “Capitalizing American Storage Potential (CASP) Act,” this new bill would make a regional ethane storage hub (the one envisioned for West Virginia) eligible for the Department of Energy’s Title XVII loan guarantee program. According to the Dept. of Energy website, Title XVII “provides broad authority for the Department to guarantee loans that support early commercial use of advanced technologies, if there is reasonable prospect of repayment by the borrower.” In other words, if the federal government guarantees a loan, lenders are more likely to make said loans at more favorable interest rates. Such a loan is “another tool that the Department will use to promote commercial use of innovative technologies” and is targeted for commercial operations only–not for use in energy research. If the bill passes, it will make building the ethane storage hub that much more attractive. In addition to the Title XVII bill, Sen. Capito also introduced a bill to hack through the red tape and streamline an approval process for the storage hub…
    Read More “WV Sens. Capito & Manchin Introduce 2 More Ethane Storage Hub Bills”

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    Halliburton Hires New CFO After Old CFO Left to Run Weatherford

    In March, Mark McCollum, who had been Chief Financial Officer (CFO) of Halliburton, the world’s second largest oilfield services company, left to become the CEO of Weatherford, the world’s fourth largest oilfield services company (see Halliburton CFO Leaves to Become Weatherford CEO). Not long after McCollum took the helm of Weatherford, the world’s largest oilfield services company, Schlumberger, gave Weatherford a helping hand (see Schlumberger Throws Weatherford a Lifeline, Challenges Halliburton). The chain reaction (and drama) continues to unfold. Halliburton announced yesterday they’ve lured away the CFO from smaller competitor Parker Drilling Company. And now Parker is looking for a new CFO…
    Read More “Halliburton Hires New CFO After Old CFO Left to Run Weatherford”

  • Marcellus & Utica Shale Story Links: Tue, Jun 13, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Appalachia gas supply outlook vs. takeaway capacity; critics see Cuomo power play at the PSC; Beaver County developer buys 63 acres behind Beaver Valley Mall near Shell cracker site; ethane cracker tops Pennsylvania’s top construction projects; shale-oil boomtown climbs back from the bust; be happy that natural gas and fracking are here to stay; fracking says “You’re welcome, America” for low gasoline prices; Harold Hamm says American natgas is going to have “world impact”; Trump wants to boost natgas exports to India; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jun 13, 2017”

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    Ohio Utica Production 1Q17 – Oil Down Again, NatGas Up Again

    The Ohio Dept. of Natural Resources (ODNR) has just issued production numbers for the first quarter of 2017. The bad news is that oil production continued to slide in 1Q17, down 29% from the same quarter in 2016. However, that’s an improvement from 4Q16 when oil production was down 44% (see Ohio Utica Production 4Q16 – Oil Down, NatGas Up). So oil is down, percentage-wise, but down less than last quarter. The good news continues to be natural gas production, which was up 13% over the same period in 2016, which is in line with last quarter when it was up 14% over the same period in the previous year. Eclipse Resources dominated the top 5 spots on the natural gas production list, all of those wells drilled in Monroe County (with 3 of the top 5 being on one well pad–the Holliday pad). Ascent Resources continued to dominate oil production with 20 of the top 25 most productive wells. However, Eclipse had the #1 most productive oil well, which continues to be the record-breaking Purple Hayes (was the longest on-shore lateral well in the world, until Eclipse drilled another longer one, in Ohio). Purple Hayes is the gift that keeps on giving, quarter after quarter. Below we have the ODNR’s high level overview of the numbers, along with MDN’s own exclusive analysis showing: the top 25 producing gas wells, the top 25 producing oil wells, and then the top 25 gas and oil wells as ranked by average production per day. There is a difference…
    Read More “Ohio Utica Production 1Q17 – Oil Down Again, NatGas Up Again”

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    Details on New Marcellus-Fired Electric Plant Coming to Robinson Twp

    In delicious irony, Robinson Township (Washington County), PA, one of the original seven selfish towns that sued Pennsylvania and eventually won at the PA Supreme Court, overturning a portion of the state’s 2012 Act 13 shale drilling law (granting towns the right to self-regulate some aspects of oil and gas drilling by using onerous zoning ordinances), is about to get a new Marcellus gas-fired electric plant. That is, a plant that burns the stuff they don’t like drilled. In April, MDN shared a list of five new Marcellus gas-fired plants coming in Southwestern PA (see 5 Big & Small Marcellus-Powered Electric Plants Coming in SWPA). In that list was a project called Beech Hollow Power Plant, to be built by Robinson Power Co. LLC. Other than a mention the plant would generate 950 megawatts of electricity (later revised to 1,000 MW), we really didn’t have any details. Until now. The PA Dept. of Environmental Protection (DEP) issued a press release last week to say a public hearing will be held on July 12 at the Fort Cherry Jr./Sr. High School Auditorium in McDonald, PA to accept comments on the project. In issuing the press release, the DEP also posted a couple of documents filed by Robinson Power in applying for the project. It’s pretty much everything you would want to know about the project, chapter and verse. We have it for you below…
    Read More “Details on New Marcellus-Fired Electric Plant Coming to Robinson Twp”

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    NEPA Landowners Fight to Sue Chesapeake’s Partners

    We’re going to take a stab at this, and we are not confident we will get it 100% right. With that as a warning, we recently reported that a case brought by landowners in northeastern PA against Chesapeake Energy over unwarranted royalty deductions suffered a bit of a setback (see Chesapeake Scores Court Victory to Prevent PA Royalty Class Action). Essentially, the landowners (in this case Scout Energy) argued that since the leases signed say royalty disputes must go to arbitration, we want mass arbitration. A class action, in other words. In May, U.S. District Judge Matthew Brann of the Middle District of Pennsylvania (overseeing the case) issued an opinion that said Chesapeake is right in demanding each case get arbitrated individually–not as part of a class action. The landowners in four cases (all of which seem to be joined, or at least moving along together) filed briefs last week to make a new argument. And here’s where we are not 100% sure, but we think the argument is this: OK, we have to go to arbitration and now it has to be individually. However, there are other defendants named in the case (Anadarko, Williams, Statoil, Mitsui E&P). Since the lease language says the lease is between the landowner and the driller (i.e. Chesapeake), that means the other defendants are NOT covered by the arbitration clause and we (the landowners) can still sue them as a class action. Why? Because (allegedly) those companies colluded together with Chesapeake to “reduce, restrain or eliminate competition for gas and mineral rights, operations rights and gathering serves in multiple counties in Northern Pennsylvania.” Oy vey! It keeps getting more complicated as the days go by…
    Read More “NEPA Landowners Fight to Sue Chesapeake’s Partners”

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    Sabal Trail Pipeline Begins Service Connecting M-U Gas to Florida

    In April MDN provided an update on the Sabal Train Transmission pipeline project (see Marcellus/Utica Gas Soon Heading to Florida Penninsula via Sabal Trail). Spectra Energy (and partners NextEra Energy and Duke Energy) are building Sabal Trail, a $3.2 billion, 515-mile interstate natural gas pipeline in Florida, Georgia and Alabama to deliver Marcellus gas to the southeast. The project has been underway for the past three+ years. Sabal Trail will connect to Williams’ Hillabee Expansion Project, which is a new pipeline spur built off the huge Transco pipeline system (see Williams Building Alabama Pipeline with Marcellus Connection). Williams is reversing a portion of the Transco to bring Marcellus gas south, much of it to feed natgas-fired electric plants. The fantastic news is that last week, the Federal Energy Regulatory Commission (FERC) authorized a partial startup of the Sabal Trail project and the Hillabee Expansion that will feed it…
    Read More “Sabal Trail Pipeline Begins Service Connecting M-U Gas to Florida”

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    Mountaineer NGL Storage Facility in OH Not (Yet) Under Construction

    In May MDN conveyed the news that it appears Mountaineer NGL Storage, which wants to build a new underground NGL storage facility in Monroe County, Ohio, near Clarington, along the Ohio River (see New Company Announces Open Season for NGL Storage in Ohio Utica), had, according to the story we read, begun construction (see Mountaineer NGL Storage Facility in OH Under Construction). Based on a new article (below), we believe that older story was in error. In October 2016, Mountaineer drilled and completed a test well in the salt formation (see Mountaineer NGL Storage Test in OH a Success, Construction in 2017). But in April of this year, Mountaineer said construction had not yet begun due to problems with red tape (see Mountaineer NGL Storage in Monroe County, OH Caught in Red Tape). A new interview with a company official who says nobody has (yet) signed on the dotted line to use the facility, and that is the holdup now…
    Read More “Mountaineer NGL Storage Facility in OH Not (Yet) Under Construction”

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    Radicals File Lawsuit Against WV DEP for Approving MV Pipeline

    A group of profoundly radical “environmental” organizations filed a lawsuit in the U.S. Court of Appeals for the Fourth Circuit last Friday against the West Virginia Dept. of Environmental Protection–for doing their job. Sierra Club, West Virginia Rivers Coalition, Indian Creek Watershed Association, Appalachian Voices and Chesapeake Climate Action Network has sued the DEP because the department had the audacity to conduct a very thorough review, and then issue a stream and water-crossing permit (demanded under federal law) for the Mountain Valley Pipeline (MVP). MVP is a $3.5 billion, 301-mile pipeline that will run from Wetzel County, WV to the Transco Pipeline in Pittsylvania County, VA. The project, which filed an official application with the Federal Energy Regulatory Commission in October 2015, is being built by EQT, NextEra Energy and several other partners. This is now SOP–standard operating procedure–for Big Green groups with deep pockets. Sue and keep suing in an attempt to slow and eventually kill off any project that remotely involves fossil fuels. Yes, they are RADICAL, they are EXTREME, waaaaaay outside the mainstream of American society. And they MUST BE STOPPED. When will someone launch weekly lawsuits against these Big Green organizations? Here’s the latest maddening development…
    Read More “Radicals File Lawsuit Against WV DEP for Approving MV Pipeline”

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    MSC Tells PA DEP What it Thinks of Onerous New Methane Regs

    In December 2016, the Pennsylvania Dept. of Environmental Protection (DEP) unveiled new regulations to clamp down on methane emissions and other other air pollution that allegedly comes from shale drilling sites (see PA DEP Releases New Regs re Methane & Air Pollution at Drill Sites). The onerous new regulations, not in effect yet, were originally prompted by bullying from the federal Environmental Protection Agency. Even though EPA pressure has disappeared under President Trump, PA Gov. Wolf still intends to push forward with these onerous (frankly, disastrous) regulations. According to the DEP, the proposed General Permit 5A (GP-5A) and the revised General Permit 5 (GP-5), “establish updated Best Available Technology (BAT) requirements for the industry regarding air emission limits, source testing, leak detection and repair, recordkeeping, and reporting requirements for the applicable air pollution sources.” After some final tweaks, the DEP released draft versions of the new permits (i.e. regulations) in February (see PA DEP Seeks Public Comment on Regs for Methane, Compressor Stns). The shale industry is calling this a potential 5-alarm fire–a direct threat to Marcellus drilling (see Unmasking PA DEP’s War on Shale via Methane Regulations). The Marcellus Shale Coalition (MSC) has raised awareness of this issue from the beginning, and attempted to work with the DEP to modify the rules. To no avail. The DEP presses forward. So the MSC filed their own official, specific objections to both GP-5 and GP-5A with the DEP last week. We scored a copy of those comments and have them below…
    Read More “MSC Tells PA DEP What it Thinks of Onerous New Methane Regs”