Marcellus & Utica Shale Story Links: Fri, Jun 23, 2017
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Ohio anti-fracking ‘digital disruption powerhour’ a huge disappointment; FirstEnergy executive vice president James H. Lash to retire; EQT/Rice merger could make more office space available at Southpointe; Environmentalists bring PA closer to financial ruin; U.S. Secretary of Energy Perry to visit W.Va.; Clean coal power plant ordered to run on natural gas instead; Frackers collide with traditional oil drillers – “frack hits”; USA: new LNG act to remove export restrictions; Cheniere offers better terms to attract LNG customers; and more!
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In March of this year, the Team Pennsylvania Foundation released a report called “Prospects to Enhance Pennsylvania’s Opportunities in Petrochemical Manufacturing” (see 
The petrochemical conference in Pittsburgh earlier this week wasn’t the only event in town. The DUG (Developing Unconventional Gas) East conference and exposition took place at the David L. Lawrence Convention Center, several blocks from the petchem event. The reporting from one session in particular caught our attention. A panel of drillers and service companies (upstream focus) talked about the prices that service companies (that is, oilfield service companies, like Halliburton and Baker Hughes) charge has gone up 10-15% over rates from last year, when service companies had to slash prices. While that’s good for service companies, but not so good for drillers and may, yet again, lead to a decline in active rig counts. The panel also discussed the increasingly critical shortage of workers in the Marcellus/Utica industry…
It’s kind of humorous when a small group of insane anti-fossil fuelers participate in a march that they call “Stop the Madness.” Kind of meta, dontcha think? An anti reporter from the Pittsburgh Post-Gazette tagged along (who could tell the difference?) to “report” on a group of “about 100 protesters from 11 organizations” who rallied and marched from one Marcellus event to another being held in Pittsburgh on Tuesday. The protesters, dressed in clothes made from petrochemicals, wearing sneakers made from petrochemicals, and holding signs made from petrochemicals (after arriving at the “rally” and “march” in fossil fuel-powered transportation), rallied outside of the Northeast U.S. Petrochemical Construction conference–to protest petrochemicals, and then marched across town to the convention center to protest fracking outside of the DUG (Developing Unconventional Gas) East event. The group was a mish mash of the usual suspects–hard left nutters who pop up again and again to grab a headline bashing fossil fuels, before scarpering home using the fossil fuels they just bashed, going to houses and apartments heated and cooled using fossil fuels. Typical…
Primoris Services Corporation, a pipeline building company based in Dallas, TX, has built a number of gathering pipelines in the Marcellus region. We’ve been covering some of the projects Primoris has been involved with since 2013 (
The federal Environmental Protection Agency has been a rogue agency for years under the previous Obama administration. To be fair, the agency has been a problem long before that–pretty much since its inception. Now that President Trump is attempting to reign in the EPA by trimming its budget and focusing it on its original intent–to clean up America’s air and water–leftists are having a cow. In a devastating column published by Dr. Jack Rafuse, a former White House energy adviser, Rafuse exposes some of the egregious collusion and criminal cover-ups perpetrated by the EPA. Rafuse lays bare the swamp that needs draining at the EPA, providing justification for Trump’s actions in reigning in this rogue agency. This is the real news that fake newsers in mainstream media won’t tell you…
It’s hard to overestimate the damage to the fossil fuel industry in general, and the natural gas industry in particular, from the propaganda film Gasland, created by Josh Fox. The movie is full of lies and misinformation, but it’s good entertainment and in a culture that disdains the use of logic and reason, someone else’s lies quickly become some unthinking people’s “truth.” Fox has repeatedly proven he’s a charlatan and liar. No one exposes his lies better than Phelim McAleer, a real filmmaker who made the counter-documentary 
Canadian company RocketFrac Services Ltd. has an interesting twist on waterless fracking technology–they use solid rocket fuel. No danger of leaks. No worries about transporting it. No water involved. The company makes some pretty big boasts: “We are confident that our fracing process will rapidly become a valuable alternative, perhaps even the preferred choice, for oil and gas exploration and development companies around the globe.” We’ve heard those kinds of claims before. Still, the startup company set out to raise $1 million and ended up raising $3.1 million (see 
It takes a lot longer these days to get a big pipeline approved than it used to. In April 2014, Dominion promoted an open season for what would later become the $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. By September 2014, Dominion said they had enough commitment to move forward with the project (see 
A week ago a sharp MDN reader (landowner) in West Virginia emailed us to ask about news of a sale by CNX Gas (i.e. CONSOL Energy) of their leases and wells in Doddridge County to Antero Resources. We were stumped. We’ve neither heard nor read anything about it. We searched. And searched. And searched. Nothing. She wrote again a few days later–had we heard anything? Nope. Then we got a second email from another MDN reader asking about the same thing. Our second questioner is in the oil and gas industry. When we questioned him, he gave us a few more clues: It may not only be in Doddridge, but also Tyler County too. There’s something happening in both areas. So we put our feelers out to a number of industry contacts and heard back from one of them–a highly placed source–who confirmed our tipsters. So we now have three people confirming. We know something has been sold and deeds are getting transferred from CNX to Antero in at least one county. Our best guess is that a sale is happening not just in Doddridge, but also in Ritchie, Tyler and Pleasants counties too. We have not (yet) been able to confirm this with Antero, but we feel we have enough to share with you, our valued readers. Here’s what we know, the evidence we have, and a map of the acreage we believe has been/is getting transferred from CNX to Antero…
On Monday EQT announced what is some of the biggest news MDN has covered in the past few years: EQT is buying Rice Energy (see 
In a sharply divided 3-2 decision (full copy below), the Pennsylvania Supreme Court of Appeals has sided with a virulent anti-drilling group, the Pennsylvania Environmental Defense Foundation, against the state in saying that any revenue generated from leasing and drilling on state-owned land MUST be used solely for conservation and the environment. The state cannot treat, as former Gov. Ed “fast Eddie” Rendell did, revenue from oil and gas drilling on state land as money that can be used for any old cockamamie political reason. That is, the money cannot go into the black hole of the “general fund” in Harrisburg. The three justices who rendered the decision say the law is clear on intent–that money must be used for environmental purposes. Fine. Except the foundation on which they decided the case is PA’s so-called environmental rights amendment. Even though this case is about how money from drilling will get used (a fairly narrow ruling), already antis at PA Big Green groups like THE Delaware Riverkeeper claim they will use this decision and the environmental rights amendment to try and block drilling on state lands because it “violates” the state constitution. That’s where they ultimately want to take this. Block it on state lands first, then go for private land next…
As the Pennsylvania budget deadline looms (June 30th), the Democrats and RINO Republicans are out in full force pushing, like a broken record, the dead issue of a severance tax. For the next nine days (or more, if the budget doesn’t pass on time, which is likely), we will have to hear about the Grand Canyon budget gap that exists, and how only soaking drillers (and landowners) to use THEIR money, will fix it. Johnny one tune. Every argument we’ve read always says money from a severance tax is needed to help fund the general budget. So when we spotted an opinion column that argued for the severance tax so the state can use the money to build more pipelines to areas without pipelines, so more residents can use natural gas, we thought that was kind of unique and funny. No, building more pipelines is not a good reason to impose a severance tax. It’s nothing more than yet another way to try and get one passed, and once in place, change the things it funds. In other words, it’s a lie. This particular view was offered by the former president of the Pennsylvania Business Roundtable. He’s also someone who’s “spent four decades in and around state government.” In other words, a swamp dweller. And establishment insider–the establishment in this case located in Harrisburg. So we’re not surprised that he wants a Marcellus-killing tax. It’s just dressed up in pretty platitudes…
Here’s a case in Ohio that has the potential to impact Utica Shale, as well as conventional, leases. According to OOGA (the Ohio Oil and Gas Association) it has the potential to affect “the validity and viability of thousands of oil and gas leases across the state.” In brief, a conventional gas well was drilled on property in Washington County, OH in 1951. The landowner later agreed to exchange royalty payments for free, unlimited gas to her home. Leases can be terminated if they stop producing profitable amounts of oil and gas. Between 1977 and 1981 there was no commercial sale of gas from the well–but the landowner kept getting her free gas. Using that five-year period of time of no commercial output, the landowner filed paperwork to declare the lease has been terminated and reverts back to her, the landowner. The driller says she continued receiving her “royalty payments” (i.e. free gas) even though nothing was sold from the well–and that’s enough to keep the lease in effect. There appear to be strong arguments on both parts, and apparently this arrangement of receiving free gas in lieu of royalty payments is not uncommon in Ohio. So the Ohio Supreme Court will decide, having recently heard oral arguments…