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    PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax

    Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED), has been one of the loudest and most credible voices in the disastrous PA Gov. Tom Wolf Administration. Davin has done great work in promoting the Shell ethane cracker and the jobs/economic development it will bring to the state (see PA Econ Dev Secretary Hits Road to Promote Shell Cracker). Last year Davin let leak he’s hearing rumors of a possible second ethane cracker–for PA (see A SECOND Ethane Cracker Coming to Pennsylvania? Maybe!). Davin is a good guy with smart people around him. So it distressed us to read a column written by Davin in yesterday’s Philadelphia Inquirer attempting to make the case for his boss’ disastrous severance tax–a tax that will literally kill all new Marcellus drilling in the state. We hope it was someone else that wrote the article and pushed it in front of Davin for his signature, because the column smacks of socialistic crap about how the severance tax is PA’s “fair share” of the Marcellus Shale boom. It’s nothing of the sort. The severance tax is a political payback to teachers’ unions for backing Wolf, which Davin surely knows…
    Read More “PA DCED Sec. Promotes Wolf’s Marcellus-Killing Severance Tax”

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    OH Anti Jailed, Pleads Guilty to 13 Felony Counts of Voter Fraud

    One of the people behind the Big Green effort to pass a frack ban in Youngstown, OH (a measure that has now failed six times) has herself been arrested and has plead guilty to 13 felony charges of committing voter fraud. Rebecca Hammonds, a local organizer and employee of the Ohio Organizing Collaborative, was sentenced to 180 days in jail this week after pleading guilty to 13 felony counts for false voter registration and election fraud in January. One of the charges had to do with her signing up dead people to vote. Do we need to say anything more about the dishonesty of the anti-drilling movement?…
    Read More “OH Anti Jailed, Pleads Guilty to 13 Felony Counts of Voter Fraud”

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    FirstEnergy Upgrading W PA Electric Grid, Some Benefit for Shale

    FirstEnergy is one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. We’ve reported on a number of projects launched by FirstEnergy to assist the shale industry–running power lines to natural gas processing plants, etc. (see FirstEnergy Investing $100M in Electric Projects for WV Marcellus). FirstEnergy has just announced another $235 million of upgrades/investments in its West Penn service area. Some of those upgrades are targeted at serving the shale industry. But FirstEnergy is conflicted. Although it loves to help midstream companies and drillers by selling them electricity, it doesn’t like it when private, independent (and competitive) companies actually produce the electricity, from shale gas, that competes with FirstEnergy’s own electric supplies. In Ohio, FirstEnergy is attempting to get the state to re-regulate the electric industry to freeze out new natgas-fired electric plants (see OH Fight to Re-Regulate Electric Industry – Impacts on Shale). So although FirstEnergy professes its love of the shale industry, it’s a conditional love…
    Read More “FirstEnergy Upgrading W PA Electric Grid, Some Benefit for Shale”

  • Marcellus & Utica Shale Story Links: Wed, Mar 8, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: FERC certificates several new natural gas pipelines; Trump game changer that could turbocharge the shale gas industry; circumstances “just right” in today’s “Goldilocks” o&g market; shale industry scrambling to catch up to boom; will US lead the LNG pack; frack sand getting more expensive, and scarce; corporate raider takes over at CNX “oil train”; BP’s largest expansion year ever in 2017; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Mar 8, 2017”

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    Patterson-UTI Feb Rig Count Up 9th Month in a Row

    As we do every month, MDN tracks how many rigs oilfield services company Patterson-UTI Energy reports operating–as a proxy for when/if the drop in rig counts for the Marcellus/Utica will turn around. Patterson operates a number of rigs in the northeast, as well as other areas of the continental United States (and Canada). Patterson was our “canary down the mine shaft” for discerning when the deep, dark recession in drilling would turn around. It happened in June 2016–and every single month since that time, including the month of February, Patterson’s active rig count has increased. In February, Patterson’s rig count hit 78, up 2 from 76 in January…
    Read More “Patterson-UTI Feb Rig Count Up 9th Month in a Row”

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    OH Court Rules Landmen Need to be Licensed Real Estate Brokers

    We know this is an important story, and we know that some (many?) MDN readers will be interested. But this is one of those rare cases where we just can’t get our heads around the scope and importance of the story–and who it really affects. We had thought that landmen in Ohio (agents who deal with landowners and mineral rights owners, getting them to sign leases or easements) did not have to be licensed real estate agents in order to do their job. However, a court case just decided in Ohio’s Seventh District Court of Appeals seems to say that at least some landmen DO need to be licensed real estate agents, in order to get paid a commission on deals they’ve brokered. We don’t think the decision requiring a real estate license applies to all landmen in Ohio (although we’re open to correction on that point). Below we have information about the Dundics v. Eric Petroleum Corp. case, along with previous info from 2014 that indicates the reverse–that Ohio landmen DO NOT need to be licensed real estate brokers. Does the Dundics case supersede previous rulings? Is the Dundics case dealing with an obscure situation that doesn’t apply to all landmen? We simply don’t know…
    Read More “OH Court Rules Landmen Need to be Licensed Real Estate Brokers”

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    PA DEP Sec McDonnell Defends Overreach of GP-5/5A

    At last week’s Oil & Gas Awards’ 2017 Northeast Industry Summit, MDN editor Jim Willis heard former Pennsylvania Dept. of Environmental Protection (DEP) Secretary, Michael Krancer, say that the DEP’s proposed changes to General Permit (GP) 5 and 5A are “a big deal” and that the permits, as drafted, have the potential to stop PA natural gas production for 12-18 months while new regulations get sorted out (see Big News from the O&G Awards Northeast Industry Summit). We’ve written a fair bit about GP-5/5A, most recently in December (see PA DEP Extends Public Comment Period for Methane Regs). Our take on GP-5/5A is that it will target a reduction in fugitive methane. However, Krancer said the new rule would also stop any new pipeline construction through wetlands (virtually any and all new pipelines) until new permitting procedures are hashed out–hence his startling statement about production stopping for more than a year. Krancer also said GP-5/5A will regulate small gathering lines. PA’s legislators are very concerned about GP-5/5A and submitted a letter to DEP Acting Secretary Pat McDonnell in February with 21 questions about the new rule change. McDonnell met with several Senators and subsequently responded, in writing, by addressing each of the 21 questions. We have McDonnell’s letter and responses below…
    Read More “PA DEP Sec McDonnell Defends Overreach of GP-5/5A”

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    NETL Research Discovers Microbes May Make Marcellus Gas Renewable

    NETL researcher Yael Tucker uses a special bio-reactor to study microbes from shale samples – click for larger version

    Dr. Yael Tucker, a research scientist working for the National Energy Technology Laboratory (NETL) at West Virginia University (Morgantown, WV), continues to make important discoveries that have the potential to increase Marcellus Shale production. Her work involves tiny microbes. Dr. Tucker’s work “shakes the general assumption” that methane gas from the Marcellus is all thermogenic–or the result of decomposing dinosaurs put under extreme heat and pressure over long periods. At least some methane in the Marcellus, according to Tucker, is biogenic–the result of tiny LIVING microbes doing their thing. In other words, natural gas may be renewable! Who knew?! Tucker’s research has huge implications: “…there may be a faster recovery time than expected for the renewal of gas reserves” in Marcellus reservoirs. Contrary to the “leave it in the ground” dunces who say once the gas is gone it’s gone, now we know we can take it out and at least some of it will magically reappear again. Renewable. Sustainable. Shale gas…
    Read More “NETL Research Discovers Microbes May Make Marcellus Gas Renewable”

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    7 Major Marcellus/Utica Pipelines Coming This Year & Next

    Yesterday MDN brought you a story about the difference, in the price drillers get for their gas, that a single pipeline can make (see The Difference One Utica Pipeline Can Make on Gas Prices). That story was about how the Rockies Express Pipeline (REX) reversed its flow from Ohio to Missouri adding 800 million cubic feet per day (MMcf/d) of extra capacity for a total of 2.6 billion cubic feet per day (Bcf/d) of gas now flowing from the Utica/Marcellus to the Midwest. REX is an existing pipeline. Just think about all of the pipeline projects in the queue for the Marcellus/Utica. In fact, there are seven major projects that are either already-approved by the Federal Energy Regulatory Commission (FERC) or under review now. If you add them all together, it represents almost 12 Bcf/d of additional natural gas flowing out of our region to other regions, where it will fetch higher prices. What are the seven projects? How much gas will each flow? When will they go online? We need a scorecard! We now have one…
    Read More “7 Major Marcellus/Utica Pipelines Coming This Year & Next”

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    Antis Try to Stop Buffalo-Area Coal Plant Conversion to NatGas

    NRG Dunkirk coal plant

    In 2013, a coal-fired electric generating plant near Buffalo (in Dunkirk) was slated to be converted to burn natural gas–a win/win for everyone (see Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas). Radical environmentalists like the Sierra Club opposed it, but that’s to be expected. Crazy people do crazy things. Everything seemed to be fine until a competitor hauled NRG, the plant’s owner, into court to dispute the change from coal to natgas. They objected to ratepayers kicking in $150 million for the project. NRG said fighting the case in court will take years, so they just closed down the plant instead (see Dunkirk, NY Coal-Fired Electric Plant Closing in January 2016). It was an economic nuclear bomb for that community. The Town of Dunkirk gets 40% of its tax revenue from the plant. New York State “generously” shucked out $5.5 million so Dunkirk wouldn’t collapse economically. But doing that year after year will get old quick. Other communities can rightly demand state help too. But then the competitor who had objected to converting the old coal plant to natgas (with ratepayer assistance) dropped their objection, and NRG restarted the project in December (see Coal-to-Gas Plant Conversion in Western NY Back from the Dead). But once again, the environmental lunatics who would rather bankrupt Dunkirk than let the plant restart as a gas-fired plant, are lobbying the state Public Service Commission to block the deal…
    Read More “Antis Try to Stop Buffalo-Area Coal Plant Conversion to NatGas”

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    Halliburton CFO Leaves to Become Weatherford CEO

    Mark McCollum, who had been Chief Financial Officer (CFO) of Halliburton, the world’s second largest oilfield services company, has left to become the CEO of Weatherford, the world’s fourth largest oilfield services company. Sounds like a good move for McCollum’s career. But is it? Since last November we’ve highlighted the financial problems at the company (see our Weatherford stories here). In February, Weatherford set about trying to raise $2.5 billion, to stay out of bankruptcy court (see Weatherford Tries to Dig Out of Debt – $2.5B Securities Offering). It makes perfect sense to hire an accountant to run the company and try to extract it from its financial woes. It’s a high stakes game for McCollum. If he’s successful in turning around the Weatherford ship, McCollum can write his ticket. If he doesn’t turn it around–well, perhaps he still has some Halliburton stock options stuffed away in a safety deposit box…
    Read More “Halliburton CFO Leaves to Become Weatherford CEO”

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    Josh Fox, Maya & Friends Plan to Protest Any FERC Appointments

    You know it’s a slow week for anti-fossil fuel crackpots like Josh Fox and Maya van Rossum (THE Delaware Riverkeeper) when they have to hold a conference call to begin protesting something that hasn’t even happened yet. The Donald has been a busy boy, trying to weed out Obamadroids deeply embedded in the federal government. The President is responsible to appointing something like 5,000 people to positions throughout the federal government. Most of them pass through Presidential Personnel (an office MDN editor Jim Willis once worked in during the Reagan Administration, back in the Jurassic period) and do not require Congressional approval. But one agency of primary concern for us, the Federal Energy Regulatory Commission (FERC), is still missing three of five Commissioners. Trump has not (yet) put forward nominees to staff it, nominees who will have to be approved by the Senate. But lack of nominees isn’t stopping Josh Fox, Maya van Rossum, a PA pig farmer and others with an abject hatred of FERC because FERC is responsible for evaluating and approving pipeline projects. You know, pipelines that flow evil, disgusting, horrible fossil fuels that are poisoning Mom Earth. On a conference call scheduled for tomorrow, Josh, Maya & friends will outline their opposition to ANYONE Trump puts forward. Doesn’t matter who it is. The Dalai Lama? Against him. BH Obama? Against him too. Meryl “hates Donald Trump’s guts” Streep? Against her, even though she’s a hater. Queen Hillary? She’s yesterday’s news. Mickey Mouse? Set out a mousetrap. That will be the strategy outlined on tomorrow’s conference call…
    Read More “Josh Fox, Maya & Friends Plan to Protest Any FERC Appointments”

  • Marcellus & Utica Shale Story Links: Tue, Mar 7, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Opposition to fracking in Maryland is anti-science; outrage over closing NY nuke plant; Exxon plans to invest $20B in U.S. Gulf region; GE & Baker Hughes get more info requests from DOJ on merger; Statoil says shale profitable at $50/barrel; #ExxonKnew activists target Shell next; Chesapeake “won’t hesitate” to dump more assets; hackers target energy sector; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Mar 7, 2017”

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    FERC Green Lights Rover Pipeline Construction

    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”

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

    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””

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

    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”