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Marcellus Drilling News
  • Energy Services | Energy Transfer Partners | Industrywide Issues | Michigan | Ohio | Pipelines | Regulation | Statewide MI | Statewide OH

    FERC Green Lights Rover Pipeline Construction

    March 6, 2017March 6, 2017

    Along with chainsaws buzzing (until Mar. 31) and wood chips flying, Rover Pipeline has now started the backhoes. As MDN previously reported, on Feb. 3 the Federal Energy Regulatory Commission (FERC) gave its final approval for Energy Transfer’s Rover Pipeline project, a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Gets Final Approval by FERC). At the time we observed Rover had received permission to clear trees before the Mar. 31 “can’t kill roosting bats” deadline. However, Rover did not have permission to begin digging trenches and laying pipeline. That permission came this past Friday…
    Read More “FERC Green Lights Rover Pipeline Construction”

  • Brooke County | Energy Companies | Equinor/Statoil | Industrywide Issues | Litigation | Marshall County | Ohio County | Taxation | West Virginia | Wetzel County

    Statoil WV Tax Overpayment Court Case – Money “Already Gone”

    March 6, 2017March 6, 2017

    Statoil, based in Norway, is a big player in the West Virginia Marcellus Shale. Statoil paid property taxes to Brooke, Marshall, Ohio and Wetzel counties (all in WV) in 2015 and later found, during an audit/review, that they had overpaid those counties. They overpaid Brooke by $1.8 million, Ohio by $2.9 million, Wetzel by $1.6 million and Marshall by $342,000 (see Statoil Wants Millions in Refunds from Tax Overpayments in WV). The WV Tax Department argued that Statoil “acted negligently” and exercised “poor judgment” in not finding the mistake sooner. All four counties voted to deny Statoil’s request, so Statoil took them to court, asking the West Virginia Supreme Court of Appeals to hear the case. However, the Appeals court ruled that the cases are not “complex” and don’t require “special treatment,” so back to county court the cases went (see Statoil’s Tax Overpayment Cases Bounced Back to WV County Courts). A hearing was held last Friday in the case. There’s not much in the way of new news to report, other than Statoil wants the cases combined and the counties would prefer to keep the cases separate. The other bit of information is that the overpayments were spent about as quickly as they were received, and the counties are expressing angst over where they will find the money to issue a refund check, should the court case(s) go against them…
    Read More “Statoil WV Tax Overpayment Court Case – Money “Already Gone””

  • Electrical Generation | Industrywide Issues | Ohio | Statewide OH

    43 Existing/Planned Gas-Fired Elec Plants Overtaking Coal in OH

    March 6, 2017March 6, 2017
    Click for larger version

    Ohio currently has 15 coal-fired electric plants producing 15,322 megawatts of electricity, and 33 natural gas-fired plants producing a maximum of 9,449 megawatts. Most of the existing natgas plants were built to serve small areas or for use during times of peak electricity demand. But that’s changing. Ohio is seeing coal-fired plants retire, and new large natgas plants rise up to take their place. Many of the existing 33 natgas plants generate 25-30 megawatts of electricity. But the new plants planned are close to, or exceed, 1,000 megawatts. Beasts! It’s a fair statement to say that natural gas (specifically shale gas) is “changing the electricity grid landscape” in the Buckeye State. Below is an article outlining how natgas is changing electricity in Ohio, along with a list of the 33 existing, 5 approved and five proposed (43 in all) natural gas-fired electric plants in Ohio…
    Read More “43 Existing/Planned Gas-Fired Elec Plants Overtaking Coal in OH”

  • Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

    Ohio EPA Begins Using New General Permits for Compressor Stations

    March 6, 2017March 6, 2017

    Compressor stations in Ohio, needed to flow natural gas through numerous new pipelines being built, require a permit from the Ohio Environmental Protection Agency (EPA) in order to get built. The Ohio EPA considers each application independently, a laborious and long process. In an effort to streamline that process, the Ohio EPA began work on a plan in September 2015 to issue “general permits” for compressor stations (see Ohio EPA Seeks “Pre-Comments” on Compressor Station Permit Plan). A general permit is, essentially, a cookie cutter approach. If midstream companies agree to the provisions in the general permit, i.e. they commit to using certain types of equipment and certain standards, the permit process will speed along much faster. In April 2016 Ohio EPA floated draft versions of the new general permits (see Ohio EPA Seeks Comments on New Permits for Compressor Stations). The long wait is over. Ohio EPA announced last week that the new general permits (there are a BUNCH of them) are ready for use…
    Read More “Ohio EPA Begins Using New General Permits for Compressor Stations”

  • Commodity Price | Energy Services | Industrywide Issues | Pipelines | Tallgrass Energy

    The Difference One Utica Pipeline Can Make on Gas Prices

    March 6, 2017March 10, 2017

    What happens when you build a major interstate natural gas pipeline–and you’ve guessed wrong about the market. That happened to Tallgrass Energy and their Rockies Express Pipeline (REX), which runs from Colorado and Wyoming in the West to Ohio in the East. The REX Pipeline was completed in 2009, just in time for the shale revolution to begin in the Marcellus and now in the Utica. What to do when you’re pumping gas into a saturated market? You reverse the flow (see Reversing the Fortunes for “Wrong Way” REX Pipeline). On August 1, 2015 the section of REX from Monroe County, OH to Mexico, MO (called Zone 3) reversed the flow and began to carry 1.8 billion cubic feet per day (Bcf/d) of Utica and Marcellus Shale gas to the Midwest, including to the greater Chicago area. In January 2017, REX completed the reversal project and now flows 2.6 Bcf/d of Marcellus/Utica gas to the Midwest (see REX Pipe Completes Expansion Today, 2.6 Bcf/d Flowing East-to-West). The ace researchers at Natural Gas Intelligence have been looking at prices Utica drillers were able to get for their gas at key locations before and after REX reversed the pipeline and have found that single pipeline has “erased” the price differences between Utica and Marcellus gas. That is, Utica drillers now fetch much higher prices for their gas, everywhere they sell it (in Ohio and out), because of the REX pipeline and the new markets it has opened up…
    Read More “The Difference One Utica Pipeline Can Make on Gas Prices”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Transco | Williams

    Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster

    March 6, 2017March 8, 2017
    Click for larger version

    Anti-fossil fuelers opposed to the Williams Atlantic Sunrise Pipeline project–a $3 billion, 198-mile pipeline running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County–are using the same (losing) playbook to oppose Atlantic Sunrise as they used to oppose the Dakota Access Pipeline. They claim, falsely, that the pipeline will disturb ancient Indian burial grounds and other hogwash about disturbing archaeological sites. As we’ve previously reported, local antis in Lancaster County, PA aided and abetted by national Big Green groups hope to recreate the disaster of Standing Rock, ND in Lancaster County, PA (see PA Anti Hopes to Bring Standing Rock Disaster to Lancaster County). As we reported last week, most of the funding for their troublemaking is coming from a British cosmetics company nobody ever heard of (see Cosmetics Firm, Church Fund Anti “Camps” Against Atlantic Sunrise). Just in case the general reading public is too stupid to understand that Lancaster is the new Standing Rock, they’ve painted “Welcome to the Stand” (channeling Standing Rock) on the side of a barn near where the Atlantic Sunrise Pipeline is due to run. And they openly admit, even trumpet the fact, that “Standing Rock is the playbook” they are using. That is, they seek anarchy and lawlessness as their preferred means to bully other people into doing something they want done…
    Read More “Protesters Try to Resurrect Failed ND Pipeline Fight in Lancaster”

  • CONSOL Energy | Energy Companies

    CONSOL Energy Hires Big Banks to Help it Sell Rest of Coal Assets

    March 6, 2017March 6, 2017

    This is a story that MDN has been watching for years–the transformation (metamorphosis, really) of CONSOL Energy from, at one time, a 100% coal-producing company into a 100% natural gas-producing company. In February MDN reported on the company’s announcement in February to either sell or spin-off the remaining coal assets it owns–this year (see CONSOL Energy 4Q16 Update – Plans to Shed Rest of Coal in 2017). It’s not just words. Bloomberg is reporting that CONSOL has hired two huge banks, Credit Suisse and Bank of America, to begin shopping the coal assets CONSOL still owns to potential buyers…
    Read More “CONSOL Energy Hires Big Banks to Help it Sell Rest of Coal Assets”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Regulation

    Antis Find Solace in Bay’s Final Pot Shot at FERC

    March 6, 2017March 6, 2017
    Norman Bay, formerly of FERC

    Anti-fossil fuel groups adamantly opposed to new pipeline projects are finding solace, and perhaps legal assistance, in the remarks made by former Federal Energy Regulatory Commissioner Norman Bay. There were three FERC Commissioners, the minimum required to vote on projects, until Bay left. Why did he leave? When Bay (a Democrat) joined FERC, he was promoted by Barack H. Obama to be the Chairman of the Commission, displacing Cheryl LaFleur (another Democrat) from her role as Chairman. LaFleur didn’t let Obama’s decision affect her–she stuck around and kept working. When Donald Trump took office, he decided, which is his prerogative, to elevate LaFleur to be Chairman once again, “demoting” Bay to regular old Commissioner. Bay immediately resigned in a huff. Thing is, Bay’s resignation was calculated to do maximum damage to current pipeline projects under review, most of them in the Marcellus/Utica. On his last day in office, along with a flurry of FERC approvals, Bay issued a statement as part of one of the approvals that FERC should “analyze the environmental effects of increased regional gas production from the Marcellus and Utica” shale regions (see FERC Commissioner Norm Bay Targets M-U on Way Out the Door). Now, anti-fossil fuel lawyers are using his words to help make their case against authorizing pipeline projects…
    Read More “Antis Find Solace in Bay’s Final Pot Shot at FERC”

  • Dominion Energy | Energy Services

    Dominion Foundation Awards $110,000 in OH Community Impact Grants

    March 6, 2017March 6, 2017

    Each year utility and midstreamer Dominion East Ohio awards grants to community organizations across the Buckeye State, where it operates. A great program. Each year (in recent memory) the awards have totaled over $100,000. This year is no different. Last week Dominion East Ohio presented $110,000 in grants to 12 winning community organizations in its 22nd annual Community Impact Awards competition. Here’s who won…
    Read More “Dominion Foundation Awards $110,000 in OH Community Impact Grants”

  • Energy Companies | Energy Services

    Northeast Oil & Gas Awards – List of 2017 Winners

    March 6, 2017March 6, 2017

    Each year the Oil & Gas Awards recognize organizations operating responsibly and supporting the communities they operate within. Now in their 5th year, the Oil & Gas Awards are judged by over 100 senior industry professionals. A gala ceremony was held last Thursday in Pittsburgh to announce the winners. Below is a complete list of the 2017 winners, by category. Congratulations to all of the finalists and winners!…
    Read More “Northeast Oil & Gas Awards – List of 2017 Winners”

  • Calendar

    Calendar of Events for Mar 6 – Jun 5 (90 Days)

    March 6, 2017March 6, 2017

    Events related to drilling in the Marcellus and Utica Shale, primarily pro-drilling.

    To have your event included (or if you are aware of a worthy event you believe should be on this page), please send the details and/or a link to have it included to the calendar@marcellusdrilling.com email address. Thank you!
    Read More “Calendar of Events for Mar 6 – Jun 5 (90 Days)”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Mon, Mar 6, 2017

    March 6, 2017March 6, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Cracking Appalachia’s ethane code; opponents of Maryland frack ban make their voices heard; did shale producers really get lean and mean – or just take advantage of low prices; U.S. shale production growing at “unprecedented rate”; Cheniere Energy gets new $750M loan; Greenpeace admits to lying about companies, under oath; and more!
    Read More “Marcellus & Utica Shale Story Links: Mon, Mar 6, 2017”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Williams

    Cosmetics Firm, Church Fund Anti “Camps” Against Atlantic Sunrise

    March 3, 2017March 3, 2017

    Ding dong–Lush is calling. A British cosmetics company (think UK version of Avon), looking to get bought-and-paid-for publicity here in the states, has donated $22,000 to the anti-Atlantic Sunrise Pipeline group, Lancaster Against Pipelines (LAP). Anti-drilling losers like those in LAP would flare out if not for the backing of companies and Big Green groups with deep pockets. Which cosmetics company did the donating? The name is Lush. You’ve never heard of them and almost certainly have never purchased any of their forgettable products–which is why they donate money to groups like LAP, to get far more exposure than advertising can buy. There’s enough nutjobs out there that will buy products from companies like Lush to make “donating” money for “causes” to these groups a profitable venture. Another funder of LAP? The Universal Unitarian Church in Lancaster, which forked over $5,000 of parishioner contributions to LAP. Hello IRS! Will you please investigate the non-profit Universal Unitarian Church for giving money to an overtly political cause? Who else is donating money to the small group of LAP rabble-rousers?…
    Read More “Cosmetics Firm, Church Fund Anti “Camps” Against Atlantic Sunrise”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | Lease & Royalty Payments | Litigation | Marshall County | Pipelines | West Virginia

    WV Hare Krishnas Settle with Rover Pipeline, Crossing Commune

    March 3, 2017March 3, 2017

    Here’s an interesting story. A religious commune of Hare Krishnas in Marshall County, WV steadfastly refused to sign an easement with Rover Pipeline to allow the pipeline across ~3,000 feet of commune-owned property. Rover had offered the Krishnas $7,000 for the easement, but no dice. You may recall that the Krishnas have no problem accepting oil and gas money, and have done so by leasing their land for shale drilling–even though the official view of the Krishnas is that “gas drilling is exploitative, that it is unsustainable and ‘contributes to the culture of death and toxicity’” (see WV Hare Krishnas “Purify” Gas Money to Benefit Commune). Apparently when there’s enough money involved, official Krishna doctrine changes. Back to Rover. On Tuesday, the Krishnas filed a lawsuit in federal court to block Rover from using eminent domain to enter the property to cut trees–a lawsuit based on religious grounds. A hearing was held on Thursday in federal court in Wheeling. The Krishnas loaded a bunch of followers into a fossil fuel-belching van to cart them to the court house to protest and make a scene. Lots of publicity. The judge granted a brief recess to allow the two sides to talk, and following the recess the Krishnas and Rover announced they had signed a deal. The official line is that Rover is changing the route of the pipeline to avoid certain holy places on Krishna property. The pipeline will now traverse MORE Krishna property–nearly twice as much more (5,300 feet). So much for objecting to the pipeline based on “religious” grounds, right? What is not mentioned, conspicuously so, is how much more money the Krishnas were able to get out of Rover, so Rover could make the bad publicity go away…
    Read More “WV Hare Krishnas Settle with Rover Pipeline, Crossing Commune”

  • Carbon County | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Regulation | Statewide PA

    PA DEP Holds Public Hearing on PennEast Compressor Station

    March 3, 2017March 3, 2017

    PennEast Pipeline is a $1 billion, 118-mile pipeline from Luzerne County, PA to Mercer County, NJ. Along the entire length of the pipeline, there will only be one compressor station–located in Carbon County, PA. This past Wednesday the PA Dept. of Environmental Protection (DEP) conducted a public hearing on the compressor station plan. Nominally the hearing is to elicit feedback from the public. However, as is so often the case, these are not really hearings but theatrical performances where anti-drilling kooks put on the equivalent of a circus act. But antis weren’t the only ones who showed up for the hearing. Plenty of supporters were there too…
    Read More “PA DEP Holds Public Hearing on PennEast Compressor Station”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

    THE Delaware Riverkeeper Plans to Pack DRBC Hearing to Oppose PennEast

    March 3, 2017March 3, 2017

    The Delaware River Basin Commission (DRBC), charged with overseeing potential impacts on the Delaware River and the various tributaries that feed it, has stepped outside of its legal bounds with plans to review the PennEast Pipeline, part of which will run through the Delaware River Basin area. In 2014 the DRBC tried to tell PennEast and its sponsors that the pipeline will need their approval before it can be built (see DRBC Tells PennEast They Need DRBC (Not Just FERC) Approval). There’s just one teeny tiny problem with the DRBC’s plan. It’s called the U.S. Constitution. PennEast is permitted solely by the Federal Energy Regulatory Commission (FERC), not any other agency including the quasi-governmental DRBC. PennEast told DRBC as much (see PennEast Tells DRBC Not So Fast, FERC has Final Say on Pipeline). But silly little things like laws don’t stop power-mad liberals like those at the DRBC. FERC, in a bid to be gracious to the libs at DRBC, agreed to hold one joint hearing on the PennEast with the DRBC (see Anti Drillers Demand DRBC Hold 7 Meetings on PennEast Pipeline). But then the DRBC has decided it will take its marbles and go home–telling FERC to blank-off, that DRBC will hold their own hearings (plural) on the PennEast (see DRBC’s Lawless Action to Review PennEast Pipeline Apart from FERC). The time has come. On March 15 the DRBC will proceed with its lawless action in holding a hearing, and DRBC friend and confidant, Maya van Rossum (THE Delaware Riverkeeper) has issued an email to her legion of mind-numbed robots to hound the DRBC about speaking slots at the hearing, so they can create the illusion that most folks are against the project. She’s also planning to pack the meeting room with hippies and ne’er–do–wells in “stop penneast” t-shirts, holding up signs…
    Read More “THE Delaware Riverkeeper Plans to Pack DRBC Hearing to Oppose PennEast”

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