EXCO Resources Adds Dealmaker to Board – What Does it Mean?
EXCO Resources was once a sizable player in the Marcellus. They still have 145,000 net acres in the Marcellus, with 124 horizontal Marcellus wells drilled and in production. However, EXCO, as we pointed out a year ago, has abandoned the Marcellus at this point (see EXCO: No Marcellus Drilling in 2015/2016, NYSE Threatens Delisting). The company flirted with bankruptcy for some time. They were able to slow the bleeding in 2Q16 (see EXCO Still Hammering Midstreamers re Contracts, Bleeding Slowed). In 3Q16 EXCO finally turned a profit, going from losing $355 million in 3Q15 to making $51 million in 3Q16 (see EXCO 3Q16: Turns a Profit! Marcellus Production Continues to Fall). That was an astonishing turnaround for a company razor close to bankruptcy. However, the turnaround was short-lived. In 4Q16 the company lost $35 million (see EXCO Lost $225M in ’16; Screwing Shareholders to Avoid Bankruptcy). At the same time they released 4Q16 and full year numbers, EXCO also released a game plan to avoid bankruptcy. That plan? Effectively turning over control of the company to its creditors. We’re not sure if it’s the creditors, or EXCO top management, but someone wanted a new face on the board of directors, and EXCO now has it: Last week EXCO announced the appointment of Randall E. King to the board. Who is King and what does his appointment really mean?…
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The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: The implications of the Dimock verdict; Maryland Gov. Hogan’s “flexibility” on fracking; Gov. Cuomo pressures PSC to cover up clean energy costs; Supreme Court denies Trump effort to halt EPA water rule; Cheniere LNG export milestone; US shale – the new swing producer; and more!
Big news broke Friday afternoon. Short history lesson for those who are new to MDN: There were 14 families along the Carter Road area of Dimock Township, PA (Susquehanna County) that reportedly experienced turbidity in their water from methane migrating, supposedly from Cabot’s drilling operations nearby. The state Dept. of Environmental Protection (DEP) investigated in 2010 and declared Cabot guilty and imposed stiff fines and requirements, including a requirement to install permanent water treatment systems at each home and even an offer to each of the families to pay twice what their property was worth at the time (see 
As sometimes happens, Williams has had to file 27 eminent domain lawsuits against landowners in northeastern and central Pennsylvania–landowners who have refused to negotiate with the company to allow the now FERC-approved Atlantic Sunrise Pipeline to cross their property. We understand the reluctance of some landowners who would rather not have the pipeline cross their property. But we also understand the necessity of the project–and the need to be reasonable. Some landowners are not reasonable. And so eminent domain is a rare, option-of-last-resort necessity in those cases. But don’t shed too many tears for landowners now being sued. One PA landowner in Luzerne County (Wilkes-Barre area) was originally offered $260,000 for an easement on 7.6 acres of land ($34,211/acre!). He refused. The price has now dropped to $225,000. Guess he should have signed before eminent domain was on the table…
The Millennium Pipeline stretches ~244 miles from Independence in Steuben County, NY to Buena Vista in Rockland County, NY. The Millennium, which is supplied by local production and storage fields and interconnecting upstream pipelines, serves customers along its route in New York’s Southern Tier region and helps meet the energy needs of northeast markets. In August 2016, the Millennium filed an application for what it calls its Eastern System Upgrade (see 
Pennsylvania State Rep. Jason Ortitay, Republican who represents of Washington and Allegheny counties in southwestern PA, last week introduced PA House Bill (HB) 1003 which would require the PA Dept. of Environmental Protection (DEP) to compile, organize and list all permits related to oil and gas drilling in two places: in one location in the Pennsylvania Bulletin, and on the DEP website. At first blush this seemed a bit odd to us. In the past MDN published a research report called the Marcellus and Utica Shale Databook. In producing that work, MDN editor Jim Willis would regularly (3x per year) access DEP permit data–which is available from the DEP website. Granted, the information is not the easiest to find, and when you locate it, you must download it and suck it into a database to get any meaningful value out of it. However, on a basic level, permit data IS available to the public from the DEP website–right now. We read a copy of the proposed bill (see it below). MDN’s takeaway after reading the bill: This bill has more to do with “encouraging” the DEP to speed up permit approvals than it does with making information publicly available…
Positive economic signs continue to pop up with respect to Shell’s multi-billion dollar ethane cracker project in Beaver County, PA. Here’s the latest major economic impact from the project. A local developer has filed for a state grant to build a massive new housing project 2.5 miles from the cracker site. The new project calls for 450 housing units, retail space, a golf course, swimming pool and parking garage. What’s that? What happens after the cracker is built and the “temporary” workers, who would be living in this new complex for the next 5-10 years, leave? Great question! Answer: Turn it into a retirement community…
Events related (or of interest) to the Marcellus and Utica Shale, primarily pro-drilling events.
Extremist environmental protesters who don’t want to hear any viewpoints other than their own (i.e., fascists who LOVE to suppress free speech), got a bit violent and ugly on Tuesday and shut down a meeting at Duke University (headquarters for insane environmentalism) where the Acting Chairwoman of the Federal Energy Regulatory Commission, Cheryl LaFleur, was scheduled to speak. Beyond Extreme Energy was one of the groups behind the illegal action. They have dogged FERC Commissioners for years. Perhaps some in the crowd were the same Beyond Extreme Energy lunatics that Pennsylvania Public Utilities Commissioner Rob Powelson previously called “jihadists”–because they show up at FERC Commissioners’ homes and threaten them (see 
In January the Federal Energy Regulatory Commission (FERC) gave its final stamp of approval for Spectra Energy’s Atlantic Bridge project (see 
In March 2015, Williams announced that its Transco pipeline subsidiary had filed an application with the Federal Energy Regulatory Commission (FERC) for its Dalton Expansion Project, which will expand the Transco and flow more Marcellus Shale gas from New Jersey all the way to Mississippi, primarily for electric generation plants, but also for local natural gas distribution by utilities (see 
Those who oppose fossil fuels try various arguments to convince the general public that extracting oil and gas is bad for the environment. They claim (without facts or proof) that drilling pollutes the water, it pollutes the air, it does permanent damage to the environment. When faced with lack of evidence, antis slip-slide into other arguments against drilling and pipelines. An undeniable benefit from the shale industry is jobs. That includes jobs building pipelines. You need an army of bulldozers, backhoes, truckers, welders and construction workers to lay a pipeline (see today’s lead story and the awesome video of the Rover Pipeline getting built in Richland County). Antis say, “But jobs building pipelines and power plants and processing plants are temporary. They’re illusory. No long-term benefit.” We’ll never forget the powerful statement given at a hearing about the proposed Constitution Pipeline from Francis Cooney, a 28-year member of the plumber and pipe-fitters union. He said this in response to the “those jobs are temporary” meme offered by antis that evening: “For 28 years every job I’ve had has been a temporary job! My temporary jobs have put two kids through Syracuse University” (see 