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    Binghamton Radio Show Highlights NY Support for Constitution Pipe

    You may recall that in April 2016, New York’s anti-drilling governor, Andrew Cuomo, decided he would cave to pressure from radical environmentalists once again and block the building of the federally-approved Constitution Pipeline (see NY Gov. Cuomo Refuses to Grant Permits for Constitution Pipeline). The Constitution is a 124-mile pipeline will move 650 million cubic feet (MMcf) of natural gas per day from Susquehanna County, PA to the middle part of New York State, where it will connect with two other pipelines. Cuomo’s toadies at the Dept. of Environmental Conservation (DEC) denied the Constitution the permits it needs to cross creeks and swamps. After it had been approved nearly two years ago by FERC, the DEC’s action was finally enough for Williams and the other partners in the project, who promptly sued NY in federal, NOT state, court (see Williams Sues NY Over Constitution Pipe – DEC May Lose Authority). The court venue is important, because in NY our court system at the highest level is corrupt–the governor appoints judges and those judges like their big-salary jobs and want to get reappointed, so they “decide” cases the way Andy wants them decided (see Shale Drilling in NY is Over – High Court Upholds Town Bans). We’ve predicted, repeatedly, that the NY DEC runs the very real risk of being removed from the decision process when it comes to federally-approved pipeline projects. If they lose the Constitution case, they will no longer have a role to play. The case went to court last November (see Constitution Pipeline Case Goes to Court in 2 Weeks, Briefs Filed). A decision in the case is due sometime this spring. It could come at any time. In the run-up to a decision, the 70,000+ member Joint Landowners Coalition of New York hosted a radio program a few weeks ago to discuss the Constitution project and the enormous support it has in Upstate NY…
    Read More “Binghamton Radio Show Highlights NY Support for Constitution Pipe”

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    NY State Legislator Tries to Derail Dominion New Market Project

    NY Assemblywoman Barbara Lifton – anti-drilling zealot

    In June 2014, MDN told you about the Dominion New Market Project–a project that will build two new compressor plants and upgrade one other compressor station in upstate New York–to help flow more abundant, cheap and clean-burning Marcellus Shale gas from Pennsylvania (and beyond) into the northeast (see Dominion Asks FERC for New Compressors in Upstate NY, WV). The project is projected to cost $159 million and provide 112,000 dekatherms per day (Dth/d) of extra natural gas capacity along ~200 miles of existing Dominion pipeline across upstate New York. The existing Dominion pipeline runs through the Horseheads, Ithaca, Syracuse and Albany areas. In March 2015 MDN friend Andy Leahy wrote about the pitched battle antis waged against the project (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). The antis were unsuccessful. The Federal Energy Regulatory Commission (FERC) approved Dominion’s New Market Project in October 2015 (see FERC Approves Expansion of Dominion Pipeline in Upstate NY). And then a real miracle happened. The New York Dept. of Environmental Conservation (DEC) approved the New Market compressor stations on Dec. 23, 2016 (see Miracle! NY DEC Approves Dominion’s New Compressor Stations). Barbara Lifton, an eco-left Democrat from Ithaca who serves in the New York Assembly, is now trying a last minute, very desperate attempt to stop the project from proceeding. Two weeks ago Lifton sent letters to both FERC and the DEC, hoping she can (ab)use her position to pressure one or the other (or both) to delay the project, which is the antis’ first step in killing a project…
    Read More “NY State Legislator Tries to Derail Dominion New Market Project”

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    Anti Doesn’t Like Cabot O&G Donating Milk to Poor People in PA

    Cabot Oil & Gas is one of the premier drillers in the Marcellus Shale. They drill in a single Pennsylvania county–Susquehanna County. They consistently have 15 of the top 20 producing shale wells in PA. By our back-of-the-envelope estimation, Cabot, all by itself, drilling in one county, delivers something like 3% of all the natural gas produced in the entire country! It is an amazing story. What’s even more amazing is the big heart the company has. Woven into the Cabot DNA is giving back to the communities where they drill. It would take several posts to recount all of Cabot’s largess. We’ll mention just two cases. In 2012 Cabot donated $2 million and helped raise another $2.2 million (for a total of $4.2 million) to help build a new physicians clinic/hospital in Montrose, PA (see Cabot Effort Raises $4.4 Million for PA Physicians Clinic). In 2014, Cabot donated $2.5 million to a local college, to help build its School of Petroleum & Natural Gas (see Cabot Oil & Gas Does it Again – $2.5 Million Gift to Lackawanna College). Believe us, there are MANY more instances of Cabot donations in cash and volunteerism from its employees. Great company. Here’s one of the latest: At the end of last year, Cabot funded a new program in Susquehanna County called “Fill a Glass with Hope.” The program is a partnership formed among Feeding Pennsylvania, the Pennsylvania Dairymen’s Association, American Dairy Association North East, the Pennsylvania Dairy Promotion Program, agriculture partners, and business leaders to provide fresh milk to Pennsylvania families in need through Feeding Pennsylvania’s network of food banks. Cabot’s funding assists the Harry & Jeanette Weinberg Northeast Regional Food Bank with the purchase and delivery of enough fresh milk to support dozens of families in Susquehanna County. It is a heartwarming story. So imagine our surprise in reading a letter to the editor of the Scranton Times-Tribune from someone who doesn’t like Cabot donating milk to poor families…
    Read More “Anti Doesn’t Like Cabot O&G Donating Milk to Poor People in PA”

  • Marcellus & Utica Shale Story Links: Wed, Mar 1, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Lawyer who helped Vorys start Pittsburgh office joins Steptoe & Johnson; propane tanks for schools questioned with natural gas nearby; Chesapeake Energy: Follow the yellow brick road; Chesapeake Energy: It’s going to be daunting; The oil and gas situation as of February 2017; and U.S. oil exports hit record levels.
    Read More “Marcellus & Utica Shale Story Links: Wed, Mar 1, 2017”

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    WPX Pays $1.2M Fine to Settle 2012 Case of Leaky PA Impoundment

    In July 2014, MDN told you the water wells for two of three families living near a WPX recycled frack wastewater impoundment (i.e. “pond”), near Ligonier (Westmoreland County), PA, were determined to have been contaminated by that impoundment. That is, the Kalp impoundment leaked into the ground, according to the PA Dept. of Environmental Protection (DEP), and that caused a long-term problem with those wells (see WPX Wastewater Impoundment Source of Water Contamination in W PA?, and our follow-up story, Important Update on WPX Energy Leaking Impoundment in SWPA). A month later the DEP later made a final determination that the third family’s well, the elderly Ken and Mildred Geary, was also affected and that WPX will need to find a permanent water replacement solution for them too (see DEP Says WPX Needs to Replace 3rd Water Supply in SW PA). From the beginning, WPX owned up to the problem and worked hard to make it right by installing water treatment systems–for five (total) affected water wells. The Pennsylvania Dept. of Environmental Protection (DEP) continues to monitor the water for the affected wells. However, the DEP is now ready to close the door on this now three year-old case, by assessing WPX with a $1.2 million fine and a requirement that they complete a remediation of soil in the area that may still be affected…
    Read More “WPX Pays $1.2M Fine to Settle 2012 Case of Leaky PA Impoundment”

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    WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development

    The legislative session for West Virginia is in full swing–a session that lasts for 60 non-contiguous days at the beginning of each year. This year’s session opened on Jan. 11 and will conclude on Apr. 8th. As MDN previously reported, perhaps the biggest energy-related issue for this year’s session will NOT be (as it has in five previous sessions) a bill on forced pooling. Instead, the West Virginia Oil and Natural Gas Association (WVONGA) is pushing a legislation on co-tenancy and joint development (see WV Won’t Push Forced Pooling, Will Push Joint Dev. & Co-Tenancy). Senate Bill (SB) 244 has now been introduced to cover both co-tenancy and joint development. Co-tenancy is pretty easy to understand: if there are multiple owners for the mineral rights under a property–something that happens fairly regularly in WV–you would only need a simple majority of those owners to approve a drilling lease. Currently, if one person with a teeny tiny share objects, it stops the process. Joint development, on the other hand, had us stumped. But we got some insight into the issue from a couple of sharp MDN readers (see More on WV’s Push for “Joint Development” Instead of Forced Pooling). Currently there are a number of existing old leases, signed before shale drilling began, that prevents drillers from drilling a horizontal well across an individual property boundary line–until a new lease is signed. Joint development says if the driller already owns the leases on all adjoining properties they want to combine into a drilling unit, they can do so without signing a new lease. WVONGA says it corrects a loophole that prevents more drilling from happening. Rights owners say joint development legislation lets drillers have a freebie–instead of signing a new lease (for more money), the driller gets something never envisioned when the original lease was signed. Who’s right? We expect SB 244 to be hotly contested this year, like forced pooling has been in previous years…
    Read More “WV Senate Bill 244 Introduced for Co-Tenancy & Joint Development”

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    Spectra Energy is No More – $28B Merger with Enbridge Complete

    Last September MDN reported on a midstream deal with major implications for the Marcellus/Utica: Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The update is that as of yesterday, Spectra Energy is no more. The merger is complete, and Spectra’s stock has stopped trading, and the name on the door has changed. Yes, this is a big, hairy deal for our region…
    Read More “Spectra Energy is No More – $28B Merger with Enbridge Complete”

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    Stone Energy Exits Bankruptcy, Sale of M-U Assets to EQT Finalized

    Stone Energy is an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana, drilling mainly in the Gulf of Mexico but also has (or rather had) a presence in the Marcellus/Utica Shale with 86,000 acres of leases. Stone quit actively drilling in the Marcellus in 2015, and filed for bankruptcy last October. As part of the bankruptcy filing, Stone signed a deal with Tug Hill to sell those 86,000 acres to Tug Hill for $350 million (see Stone Energy Enters Bankruptcy, Sells Marc/Utica Assets for $350M). The deal with Tug Hill was called a “stalking horse bid,” which meant Tug Hill would get the deal if no one else came along and bid higher. Someone did come along and bid higher–EQT (see EQT Wins Bankruptcy Auction for 86K Stone Energy M-U Acres, $527M). As of yesterday ownership for Stone’s 86K acres + wells was officially transferred to EQT. As of today, Stone is exiting bankruptcy. Now they have to pay Tug Hill a $10.8 million breakup fee…
    Read More “Stone Energy Exits Bankruptcy, Sale of M-U Assets to EQT Finalized”

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    FERC Issues Favorable Enviro Report for Mountaineer & Gulf XPress

    In December, the Federal Energy Regulatory Commission (FERC) threw a little cold water on two important pipeline upgrades to carry more Marcellus/Utica gas to southern markets. A final environmental impact statement (EIS) was due from FERC for both the Mountaineer XPress and Gulf XPress projects no later than April 28, 2017. FERC said that the deadline would slip by three months due to reroutes and additional environment information requested (see FERC Delays EIS for Mountaineer XPress & Gulf XPress Pipelines). MDN previously reported on Mountaineer XPress, which includes 165 miles of new pipeline with approximately 2.7 billion cubic feet (Bcf) per day of transportation capacity from existing and future points of receipt along or near the Columbia pipeline system–most of it located in West Virginia (see Details on Columbia Pipeline Mountaineer XPress Pipeline Project). Gulf XPress consists of constructing seven new midpoint compressor stations along the existing Columbia pipeline system in Kentucky, Tennessee and Mississippi, with the aim of moving an additional 875 million cubic feet (MMcf) of Marcellus/Utica gas per day southward, to the Gulf Coast region. However, before FERC issues a final EIS for both projects, they must first issue a draft EIS (or DEIS)–which they did yesterday. The good news is that it was a favorable DEIS, signaling a favorable EIS will be issued by the end of April. The further good news is that FERC has scheduled five public hearings (four in WV and one in TN) for late March. We have FERC’s DEIS announcement below, along with a copy of the full DEIS (all 532 pages!)…
    Read More “FERC Issues Favorable Enviro Report for Mountaineer & Gulf XPress”

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    Southwestern Loses $2.8B in 2016, Ramps Up Utica Drilling “Early”

    After idling most of its rigs in the Marcellus/Utica during 2016, Southwestern Energy, one of our regions biggest drillers, is restarting rigs and drilling new wells in 2017–according to announcements made by the company over the past several days. Southwestern issued its 2016 update, and 2017 guidance, late last week. Some of the most exciting news to come from Southwestern came on the earnings call last Friday. Southwestern CEO Bill Way said this: “We are very encouraged by the early results of our first Utica well [in Marshall County, WV] and as a result have accelerated the timing for our second test well located in Washington County, Pennsylvania, which was spud earlier this month. And you will recall that we had originally planned to begin our Utica testing in 2018, but results from wells and circling our position and our first well, provided us with the confidence to accelerate this activity.” Although rigs got idled in 2016, it doesn’t mean there was no drilling. Last year Southwestern invested a total of $623 million in drilling, and drilled 62 wells, completed 86 wells, placed 85 wells to sales and had 135 wells in progress. Of the 135 wells in progress at year-end, 73 were located in Northeast Appalachia, 42 in Southwest Appalachia and 20 in the Fayetteville Shale. On the down side, the company reports losing $2.8 billion (mostly a paper loss for “impairments”–write-downs of asset value). But that’s a vast improvement over losing $4.7 billion in 2015…
    Read More “Southwestern Loses $2.8B in 2016, Ramps Up Utica Drilling “Early””

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    Rover Pipeline Files Eminent Domain Against 58 Michigan Landowners

    Earlier this month Rover Pipeline, 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, received its final authorization from the Federal Energy Regulatory Commission on Friday (see ET Rover Pipeline Gets Final Approval by FERC). Because FERC was late in issuing its final approval, and because Energy Transfer, the builder of Rover, has promised to deliver the project on time, there is no time to waste. As soon as the final approval was issued, Rover filed eminent domain lawsuits against Ohio landowners who have refused for over a year to negotiate (see Time’s Up – Rover Pipe Uses Eminent Domain on Holdout OH Landowners). As it turns out, Ohio isn’t the only state where Rover has filed eminent domain lawsuits. The company has now filed 58 such suits in Michigan as well…
    Read More “Rover Pipeline Files Eminent Domain Against 58 Michigan Landowners”

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    Marcellus Shale Saving Family Farms Across Pennsylvania

    Across the Keystone State (i.e. Pennsylvania), the shale revolution is “boosting agriculture,” says a farm expert. How? By providing new sources of capital (cash) to buy new equipment, more livestock, fix buildings, etc. Shale is also lowering the cost of fuel and fertilizer for farmers. And it provides jobs for members of farming families–bringing in an important new income stream. It is not an overstatement to say that shale is literally saving the family farm in PA…
    Read More “Marcellus Shale Saving Family Farms Across Pennsylvania”

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    Still Time to Join MDN in Pittsburgh on Thursday – Here’s How!

    For those in the Pittsburgh region, there is still time to register and attend this year’s Oil & Gas Awards Northeast Industry Summit, being held on March 2 in Pittsburgh. MDN editor Jim Willis will moderate two of the panel discussions at the event. Jim invites Marcellus Drilling News readers in the Pittsburgh orbit to attend the Summit–for FREE. Just sign up here. The Agenda for the Northeast Industry Summit is now complete (see it online). MDN readers are invited to attend as complimentary guests. The Industry Summit takes place at the Westin Convention Centre, Pittsburgh, PA, on Thursday, March 2, 2017, between 8.30 am and 12.30 pm.

  • Marcellus & Utica Shale Story Links: Tue, Feb 28, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: OH hotels lose business with drilling downturn, slowly regaining; PA’s natgas industry poised for a rebound; confirmation votes for Energy, Interior picks coming this week; second coming of shale even more powerful than the first; U.S. drillers add rigs for 6th week in a row; oil production increasing in 2017; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Feb 28, 2017”

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    PA Expects $80M in Royalties from Drilling on State Land in 2017

    One of the big success stories about Marcellus drilling in Pennsylvania is the money generated from state land leased for oil and gas drilling. You may recall two governors ago Democrat Gov. Ed Rendell was hell bent for leather in leasing state-owned land for drilling ON said land. After his voracious appetite for money was sated and his Democrat cronies in the legislature spent (“blew”) all $444 million of it, Rendell tried to pretend that he’s an environmentalist by slapping an executive order–a moratorium–on any more leasing of state-owned land. Hypocrite. The next Governor, Tom Corbett, lifted that moratorium with an executive order of his own so that another $75 million of badly needed revenue could be raised by leases for drilling under (not on) state land. Then along came the disastrous Tom Wolf. He immediately signed a new executive order banning any new leases on state-owned land (see PA Gov Wolf Signs Exec Order to Ban Drilling Under State Land), cutting off an important new revenue stream. However, a lot of state-owned is, as we said, already leased. And some of it has been drilled on/under–and it produces a prodigious amount of royalties. The PA Dept. of Conservation and Natural Resources (DCNR), which oversees PA’s state land, says they expect to see around $80 million in royalty payments this year. They also report still having issues with some drillers over shorting royalty checks. DCNR says they are owed “hundreds of thousands of dollars” in shorted royalty money…
    Read More “PA Expects $80M in Royalties from Drilling on State Land in 2017”

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    “Thousands” in PA Healthcare Send Ltr re Methane Regulations

    AFTERNOON UPDATE: We now have a copy of the so-called “open letter” as it was posted from the Scribd website to share with you (see it below). In viewing the properties of the document (image below) you will find that the the Environmental Defense Fund (EDF) and DC-based Smoot Tewes firm–started by two former Obama campaigners–were behind the letter. Kelsey Robinson, an EDF communications person in Austin, was the author. None of the signatories on the letter are from the EDF. In other words, this was a sham, made-up piece of anti-drilling propaganda from the beginning–and the Post-Gazette reporter played along. Just another example of fake news from a mainstream newspaper.

    A small group of anti-drilling healthcare workers (i.e. doctors, nurses, etc.) are, once again, trying to stop Marcellus Shale drilling in Pennsylvania. Their latest angle of attack is a publicity stunt using one of their favorite tools–the Pittsburgh Post-Gazette. The Post-Gazette runs a story today that opens this way: “Thousands of Pennsylvania doctors, nurses and other health care professionals have sent a letter to the Marcellus Shale Coalition, requesting that it stop legal challenges and lobbying against regulations aimed at controlling drilling air emissions and safeguarding public health.” Several paragraphs later we read this: “The letter, scheduled for release Monday, is signed by about 40 individual doctors, nurses and health care workers, and organizations representing more than 40,000 doctors, nurses, researchers, and health professionals.” In other words, “thousands” did not send a letter, but in reality, “about 40 individuals” did. That’s called fake news. And it’s being pedaled by the same rabidly radical antis (who happen to work in the healthcare industry) we’ve heard from before. They are committed to irrationally ending the use of fossil fuels, and they’ve apparently enlisted the help of a sympathetic “reporter” to do it…
    Read More ““Thousands” in PA Healthcare Send Ltr re Methane Regulations”