• |

    Carrizo O&G Puts Up ‘For Sale’ Sign on Marcellus/Utica Assets

    Carrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. During the company’s fourth quarter/full year 2016 earnings call, it seemed to us that Carrizo signaled a potential sale of their Marcellus/Utica assets (see Carrizo Actively Considering Sale of Marcellus/Utica Assets). Looks like we were right. Yesterday on an earnings call for 1Q17, Carrizo CEO S.P. “Chip” Johnson said, “[W]e have elected to test the market for our Appalachian assets, as they do not currently compete for capital with our three core oily plays. Monetization of these assets would leave Carrizo with a core position in three high-return, oil-weighted plays and should enhance our long-term production growth profile.” Translation: We’ve now put the “for sale” sign out on our Marcellus/Utica assets. What are those assets? We outline them below…
    Read More “Carrizo O&G Puts Up ‘For Sale’ Sign on Marcellus/Utica Assets”

  • |

    Antero Resources: Production Hits New High of 2.1 Bcf/d, $268M Profit

    Antero Resources, one of the biggest and best drillers in the Marcellus/Utica concentrating on just those two plays, turned in their first quarter 2017 numbers on Monday, and held an earnings call to discuss it yesterday. The first thing that caught our eye was that Antero hit a new production high in 1Q17. The company produced 2.1 billion cubic feet equivalent per day. Impressive. Perhaps even more impressive is that although the company lost $5 million in 1Q16, they swung to making a $268 million profit in 1Q17. Wow! Antero has one of the best hedging programs in the business. That is, they pre-sell their production at higher prices than other drillers, which is no doubt why they turned in such a great first quarter. The Marcellus was their main focus during 1Q17. Antero drilled and brought online 25 Marcellus wells. Although they fiddled with drilling and casing 13 Utica wells in the first quarter, they didn’t complete (i.e. frack) and bring any of their Utica wells online. Why? They’re waiting for the Rover Pipeline to get built first. Antero currently runs three rigs in the Utica. They plan to move one of the three to the Marcellus during 2Q17. Here’s a load of good information from Antero for 1Q17…
    Read More “Antero Resources: Production Hits New High of 2.1 Bcf/d, $268M Profit”

  • |

    MAX Environmental Walks Away from Marcellus/Utica

    In 2014 MDN reported that MAX Environmental, operator of the Bulger hazardous waste landfill in Smith Township (Washington County), PA since 1958, planned to expand the landfill by 21 acres in order to handle an increase of drill cuttings and even liquid waste (which they will turn to solid waste) coming from Marcellus Shale drilling (see New Landfill Expansion in SWPA Aimed at Marcellus Drillers). That happened and the landfill currently accepts Marcellus/Utica waste. Earlier this year, MAX sold itself to Altus Capital Partners–a private equity investment firm–for an undisclosed amount (see Pittsburgh-based MAX Environmental Purchased by Investment Firm). With the closing of the deal, MAX’s CEO/owner, William Spencer, rode off into the sunset and Bob Shawver was brought in as the new CEO. Shawver, while acknowledging it would have been “nuts” not to pursue business from the shale industry when it was going gangbusters, is “retooling” MAX–away from depending on the Marcellus industry. If the industry continues to pick up, Shawver won’t turn down business–but MAX will no longer be known and branded as a company in the oil and gas space. Shawver is rebranding the company, and going after customers that are the region’s “traditional bread and butter”–manufacturing, industrial facilities and construction… Read More “MAX Environmental Walks Away from Marcellus/Utica”

  • | | | | | |

    6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe

    As we reported last week, six anti-pipeline residents living near where the Mariner East 2 pipeline will pass asked the Middletown (Delaware County, PA) town council to reject the path of the pipeline near their property because it would, supposedly, pass closer than town code allows. At a meeting earlier in the week, town council told the residents they’re out of luck–the town will not pursue any action to block Mariner East 2. Period. The residents, amped up and agitated by Big Green groups, was rumored to be considering a lawsuit against the pipeline to force it to conform with Middletown’s ordinance. It’s no longer a rumor. The amped up antis, spurred on and using lawyers from said Big Green groups, filed a lawsuit in the Delaware Court of Common Pleas on Friday… Read More “6 Middletown Antis Sue Sunoco LP to Stop Mariner East 2 Pipe”

  • | | |

    PA DEP Acting Secretary McDonnell Will Soon Drop “Acting” from Title

    Patrick McDonnell Acting Secretary, DEP

    It won’t be long now and Acting Secretary of the Pennsylvania Dept. of Environmental Protection won’t have to “act” any more. In May 2016, DEP Secretary John Quigley was fired for using a PRIVATE email account to collude with his Big Green friends to try and bully PA’s legislators into supporting his onerous proposed regulations (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Richly deserved. The man who took his place as Acting Secretary is Patrick McDonnell, a 19-year veteran of the DEP. Pat made it clear from the beginning he’d like to move from “acting” to full Secretary. It took Wolf long enough, but finally in September he put Pat’s name forward as permanent DEP Secretary (see Gov. Wolf Nominates Pat McDonnell to Head PA DEP, Finally). We’re not sure what the holdup has been, but the PA Senate Environmental Resources and Energy Committee finally held a hearing and grilled McDonnell yesterday, after which the panel voted to recommend he be confirmed. The full Senate has until May 23rd to cast that vote, which we expect they will do… Read More “PA DEP Acting Secretary McDonnell Will Soon Drop “Acting” from Title”

  • | | |

    Study Finds Fugitive Methane from O&G 97% Less than EPA Estimates

    The federal Environmental Protection Agency (EPA), under the Obama/McCarthy reign of terror, far overstepped its charter by seizing power that doesn’t belong to it. Last May the EPA issued new methane rules in a back-door way to try and regulate the oil and gas industry (see EPA Does it Again: Tries to Destroy O&G with New Methane Rule). In pretty short order several states sued to stop the order, which eventually turned into 15 states (see 15 States File Lawsuits to Block EPA O&G Methane Rule). The EPA claimed, at that time, that methane is leaking out of bore holes, pipelines, valves–just about everywhere on a well pad. And methane (as the fairy tale goes) is a gajillion times more “potent” than carbon dioxide when it comes to causing man-made global warming. The problem is, the EPA used estimates, calculations, algorithms, spreadsheets as their “evidence.” They never went into the field and actually measured anything. Such a field study has now been done–by the EPA–in the Uinta Shale Basin in Colorado (full copy below). And guess what the researchers have found? While there is some methane leakage here and there, the EPA previously OVERESTIMATED the leakage–by 97%! Yes, “EPA researchers found methane emissions from intermittent bleed devices were 97 percent lower than the standard emission factor for intermittent pneumatic control devices EPA uses for estimates in its Greenhouse Gas Inventory(GHGI).” In other words, the entire methane rule the EPA forced on the industry was based on lies…a foundation of sand…a house of cards. Why does that not surprise us?…
    Read More “Study Finds Fugitive Methane from O&G 97% Less than EPA Estimates”

  • Marcellus & Utica Shale Story Links: Wed, May 10, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Cove Point and the Atlantic Seaboard – in search of gas; Rice Energy considers selling part of midstream unit; legal battles continue in OH over oil & gas rights; five pipe projects in the mix in southeast OH; three reasons to invest in OH gas-fired power; CONSOL sees potential in the Utica where others don’t; officials should put added focus on WV cracker project; 18 protesters arrested for blocking pipeline project in Mass.; shale drillers are outspending the world by $84B; idiotic cities voting to cut their nose off by adopting resolutions to use 100% renewable energy; EOG uses science to boost production; and more! Read More “Marcellus & Utica Shale Story Links: Wed, May 10, 2017”

  • | | |

    Exclusive: What’s Going on with Fairmont Brine?

    Last week MDN was contacted by a vendor working in the oil and gas business who is owed money by Fairmont Brine. The vendor’s question to MDN: What have you heard about Fairmont? Are they heading for bankruptcy? We’ve had our eye on Fairmont Brine Processing, headquartered in Fairmont, WV, for a number of years. We originally started writing about the company in 2010 when it was AOP Clearwater (see AOP Clearwater Plant in WV a Big Success in Treating Marcellus Shale Wastewater). New owners expanded the operation in 2014 (see New Brine Processing Plant Coming to Panhandle of WV). In early 2016, Fairmont secured a $90 million line of credit to build a new wastewater processing plant in southwest PA (see Fairmont Brine Gets $90M to Build New Wastewater Recycling Plant). And in November, we spotted the company’s name in a major Bloomberg article about Oklahoma earthquakes and how the company can help solve the problem (see WV Wastewater Co Grabs Nat’l Headlines re OK Earthquakes). We told our inquiring vendor we had not heard anything lately about Fairmont. The vendor said he’s not been paid for many months, and sent us copies of letters from the company stating the company is in a cash flow pinch and could not “fulfill its obligations at this time.” So MDN contacted Fairmont’s law firm, the venerable Babst Calland, to find out what’s going on. Here’s what what we found… Read More “Exclusive: What’s Going on with Fairmont Brine?”

  • | | | | |

    Fracking is Legal in New York? Yes! Using LPG

    Every now and again a gift lands in our lap, unexpectedly. Such is the case today. A third year law student at the University of Buffalo School of Law, Kelsey Hanson, has researched and written a masterful paper on the potential for LPG (liquefied propane) fracking in, yes, New York State. The paper, titled “Hey New York, You Can Frack: An Examination of How Liquefied Petroleum Gas Sidesteps New York’s Fracking Ban to Provide a Legal and Practical Approach for Horizontal Drilling in New York’s Marcellus Shale” (full copy below) has just been published in the Buffalo Law Review (how did that happen?!). In the paper, Hanson first gives a background of traditional fracking, then zeros in and explores LPG fracking–its benefits and its pitfalls. She concludes that the NY Dept. of Environmental Conservation (DEC) has left the door open, legally, for shale LPG fracking in the Empire State. She also gives us a much-needed update on the question MDN gets asked frequently: Whatever happened to LPG fracking in Tioga County, NY? The article is eminently readable, full of great information, and worth your time…
    Read More “Fracking is Legal in New York? Yes! Using LPG”

  • | | | |

    Federal EPA Writes a PennEast Pipeline Love Letter to FERC

    Once upon a time, during the Obama reign of terror, the out-of-control Environmental Protection Agency (EPA), as headed by the odious Gina McCarthy, blasted the PennEast Pipeline project (see Obama EPA, National Park Service Try to Rain on PennEast Parade). The Obama/McCarthy EPA made an outrageous claim: That building PennEast “may” end up causing arsenic in groundwater supplies. Totally bogus. And pathetic. The Federal Energy Regulatory Commission (FERC) didn’t fall for EPA’s arsenic and old lace. They approved the project in April (see FERC Issues Favorable Final EIS for PennEast Pipeline Project). Along with the change in the presidency has come some clear-headed thinking in Washington, DC–including at the EPA. Make no mistake–the EPA is still overly populated with Obamadroids that need to be canned. However, there’s enough of a change at the EPA that the agency has just sent what we would call a love letter to FERC, about PennEast. In it, the EPA says, “FERC’s efforts to consider and actively engage EPA to discuss comments, which resulted in improved or modified documentation provided in the [Final] EIS and improved safeguards for protection of human health and the environment.” And because of that, “many of our concerns and objections [to PennEast] have been or will be addressed.” In other words, everybody has now kissed and made up. EPA is feelin’ good about PennEast. And so are we…
    Read More “Federal EPA Writes a PennEast Pipeline Love Letter to FERC”

  • | | | | | |

    NY DEC Grants Water Permits for Atlantic Bridge Pipeline Project

    Very good news for Spectra Energy’s Atlantic Bridge project in (of all places) New York State. In January the Federal Energy Regulatory Commission (FERC) gave its final stamp of approval for Atlantic Bridge (see FERC Approves Atlantic Bridge Project for New England/Canada). Atlantic Bridge will beef up capacity on the Algonquin Gas Transmission and Maritimes & Northeast Pipeline systems–to move more Marcellus/Utica gas to New England and Canada. Even though FERC “approved” Atlantic Bridge, Spectra Energy must still ask for “Mother May I?” permission to begin construction on specific, individual portions of the project. FERC granted Spectra Energy permission to begin construction on all of their requests in Connecticut in March (see FERC Grants Atlantic Bridge Pipe OK to Begin CT Construction). However, the part of the project located in New York State was stalled, waiting for a water crossing permit from the Cuomo corrupted Dept. of Environmental Conservation (DEC). Miracle of miracles–the DEC has granted those permits… Read More “NY DEC Grants Water Permits for Atlantic Bridge Pipeline Project”

  • | | | | |

    Allentown-Based Talen Energy (Elec Generator) Laying Off Workers

    Talen Energy was birthed in June 2015–a combination of PPL Energy Supply and certain assets of Riverstone Holdings. The company, headquartered in Allentown, PA, is one of the largest competitive energy and power generation companies in North America. Talen owns or controls 16,000 megawatts of generating capacity in wholesale power markets, primarily in the Northeast, Mid-Atlantic and Southwest regions of the U.S. Talen has gotten into converting and building natural gas-fired electric plants, stories we’ve covered over the past few years (see our Talen Energy stories here). At one time Talen employed around 500 people in Allentown at its HQ. Last summer the company announced layoffs for 131 people. Unfortunately, the trend continues. Talen plans to layoff more people–although an exact number has not yet been released… Read More “Allentown-Based Talen Energy (Elec Generator) Laying Off Workers”

  • | | |

    Anti Group Trains to Fight New Drilling Permits in Westmoreland, PA

    Penn Twp – Westmoreland County, PA

    This is a heads-up to drillers and landowners in Westmoreland County, PA (essentially Pittsburgh suburb). A group of virulent anti-drillers, funded with money from Big Green groups like the Philadelphia-based and misnamed Clean Air Council, are running a “workshop” to train nutters how to spot any changes in permits for shale wells–so they can, do what? Oppose them, that’s for sure. How? Flood the state Dept. of Environmental Protection with letters and emails (to slow down the permitting process)? Protest? Something more sinister? The announcement about the training session doesn’t specifically state how the nutters will use the information. The training will take place in Penn Township in Westmoreland County, which has been the epicenter for a number of battles to allow drilling…
    Read More “Anti Group Trains to Fight New Drilling Permits in Westmoreland, PA”

  • | | | |

    Seneca County, OH – Where All Forms of Energy Come Together

    Generally speaking, the western side of Ohio is seeing a lot of activity with new solar and wind installations. And the eastern side of the state is seeing a lot of activity with shale drilling and natural gas pipelines. But there is one county, Seneca County (slightly left of center, in the northern part of the state) where both renewable projects like solar and wind, and fossil fuel projects like pipelines, are both active. And that means landowners in Seneca County are being bombarded with offers from solar, wind, pipelines and electric lines. Some sage advice from the Ohio Farm Bureau Federation for landowners: hire a lawyer before you sign anything… Read More “Seneca County, OH – Where All Forms of Energy Come Together”

  • | | |

    40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout

    In April, MDN brought you news of an effort underway in Ohio to tax Ohio ratepayers $5.4 billion and give that money to FirstEnergy to prevent some of its nuclear power plants from closing (see OH Law Would Bailout Nuke Plants for $5.4B, Kill NatGas Plants). Given stiff regulations, nuke plants face stiff competition in the free marketplace. Natural gas-fired plants are cheaper to build and operate, and deliver cheaper electricity. Since nukes can’t compete in the free and open market, FirstEnergy wants to rig the game, all in the name of “energy diversity” and keeping their nuke plants open (and investors happy). Rate-paying Ohioans get screwed in the process. Some 40 groups have banded together for form the Coalition Against Nuclear Bailouts. Some are big groups, some are individuals. They are diverse. For example, the far-left AARP (disgusting organization) is in the coalition. So too is the Ohio Oil and Gas Association (OOGA) and the National Association of Royalty Owners (NARO). Plus some pastors of churches, and local politicians. Feels kind of weird to support an organization with groups like the AARP in it. But perhaps the enemy of my enemy is my friend. At least in this case. It is, truly, a nonpartisan (or should we say bipartisan) coalition that has risen up to fight the nuclear bailout… Read More “40 Ohio Groups Band Together to Oppose FirstEnergy’s Nuke Bailout”

  • Marcellus & Utica Shale Story Links: Tue, May 9, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Update on Marcellus/Utia pipeline takeaway projects; rig count declines in PA, WV last week; NYS energy policy – nukes yes, pipelines no; RINO Sen. Portman on the fence re Obama methane rule; signs of drilling industry coming back in PA; EPA drains some of the swamp – dismisses half of scientific advisers on key board; Chesapeake ‘on the ramp’ to growth; Congress gears up for nuclear subsidy showdown; Russia-U.S. rivalry for natgas; and more! Read More “Marcellus & Utica Shale Story Links: Tue, May 9, 2017”