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    OH Gov. Kasich Recycles Proposal to Increase Utica Severance Tax

    “Johnny could only sing one note / And the note he sang was this…” Ohio Gov. John “severance tax” Kasich is Johnny One Note when it comes to his desire to tax the Utica Shale industry and transfer their hard-earned money away to other people who didn’t earn it. Kasich announced he would obstinately include a nosebleed-high Utica Shale severance tax (6.5%) in his biennium budget–again. Kasich has been pining for an increase in Ohio’s severance tax for years (see our extensive list of Kasich severance tax stories here). OH legislators have already declared the proposal to increase the severance tax “dead on arrival.” Kasich offered up this explanation for his addle-headed insistence on including it again: “Some might be cynical and say why does he keep putting this severance tax in when he knows it’s not going to pass…I don’t believe this legislature is going to enact higher severance taxes, but the day will come when they will.” Poor Johnny One Note singing (with gusto) the only note he knows…
    Read More “OH Gov. Kasich Recycles Proposal to Increase Utica Severance Tax”

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    New WVDEP Secretary Fires Enviro Advocate, Communications Director

    It’s the end of an era in West Virginia. Due to term limits, Gov. Earl Ray Tomblin (Democrat) could not run for reelection this past November. Jim Justice (also a Democrat) won that election. Upon assuming office this month, Justice appointed a new head of the WV Dept. of Environmental Protection–Austin Caperton. It’s only natural for an incoming governor to pick his own team, even if the outgoing governor was from the same party. And, we suppose, it’s only natural that the new head of a department (Caperton) would want his own team too. In a move that appears to have generated some controversy, Caperton has given the boot to the leader of the DEP’s Office of Environmental Advocate, Wendy Radcliff, as well as the DEP’s communications director, Kelley Gillenwater. Radical anti groups like the West Virginia Highlands Conservancy, West Virginia Sierra Club and the Ohio Valley Environmental Coalition were up in arms over the firing of Radcliff. Which must mean it was a good move…
    Read More “New WVDEP Secretary Fires Enviro Advocate, Communications Director”

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    Epsilon Energy Update: IOUs Paid Early, No New Marcellus Wells

    It’s been a while since we’ve updated you on Canadian driller and midstream company Epsilon Energy. As a reminder, Epsilon had a shareholder rebellion in 2013 and threw out the sitting board of directors (see Shareholder Rebellion at Epsilon Energy – New Board as of Today). Epsilon CEO Michael Raleigh announced at the time that the company had embarked on a turnaround strategy of focusing on the Marcellus Shale–less than a year after saying they would scale back in the Marcellus (see Epsilon Energy Makes “About-Face” on Marcellus Drilling). Epsilon was and remains a very small player in the Marcellus, but the Marcellus is the company’s entire focus. From what we can tell, the company has not drilled, and doesn’t plan to drill, a single Marcellus well–since 2014. However, they do own a 35% interest in the Auburn Gas Gathering system in the northeast PA Marcellus (Williams is majority owner with 44%). Epsilon’s capital expenditures for 2Q16 were a grand total of $100,000, all of it spent on the Auburn system (see Epsilon Energy: Still No Marcellus Drilling, Focused on NEPA Pipe). While the company has not yet released 4Q16 and full year 2016 results, they did announce they will pay back some outstanding debts early. We have those details, along with Epsilon’s 3Q16 update below…
    Read More “Epsilon Energy Update: IOUs Paid Early, No New Marcellus Wells”

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    EIA: NatGas-Fired Electric Plants Adding 36.6 GW Next 2 Yrs

    As MDN has covered (shouted) for several years now: natural gas-fired electric plants are a really big deal. The conversion from using coal (and some other forms) to natgas to generate electricity is happening at an increasing rate. And those electric generating plants use A LOT of natgas–meaning new markets for drillers. Just yesterday we gave you a list of 409 such projects across the Fruited Plain (see List of Gas Plants, Pipelines Targeted by Sierra Club). Many of those projects are in the Marcellus/Utica region–or adjacent to our region, using M-U gas to power them. Here’s one more bit of evidence that natgas-fired plants are a big deal. According to our favorite government agency, the U.S. Energy Information Administration, the electricity industry is planning to increase natgas-fired generating capacity by 11.2 gigawatts (GW) in 2017 and 25.4 GW in 2018 (for a total of 36.6 GW) based on information reported to EIA. That’s enough to power something like 26 million homes! If all these plants come online as planned, annual net additions in natural gas capacity would be at their highest levels since 2005. On a combined basis, these 2017–18 additions would increase natural gas capacity by 8% from the capacity existing at the end of 2016…
    Read More “EIA: NatGas-Fired Electric Plants Adding 36.6 GW Next 2 Yrs”

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    300 Turn Out to Oppose Pilgrim Oil Pipe in Kingston, NY

    In November 2015, MDN told you about Pilgrim Pipeline Holdings, developing an East Coast pipeline to carry refined petroleum products such as gasoline, diesel, heating oil, and jet and aviation fuel northbound from Linden, New Jersey to Albany, New York (178 miles). In addition, a second Pilgrim pipeline will carry crude oil from Albany south to NJ and other locations. Two pipelines, side by side, liquids flowing through them in different directions (see Will Pilgrim Pipeline be Allowed to Settle in the NY World?). The oil that would flow south from Albany comes from trains delivering crude from the Bakken Shale play–a double evil in the sight of radical anti-fossil fuelers. So they turned up the pressure on the spineless Andrew Cuomo (see NY Antis Hope Gov. Cuomo Will Halt Pilgrim Pipeline’s Progress). The pressure worked (he’s so predictable). In September the state Dept. of Environmental Conservation and the state’s Thruway Authority, working together, informed Pilgrim they will need to submit to a detailed anal exam, called a full environmental review, before obtaining approval. Anti-fossil nutters rejoiced that the project has been slowed (gives them a chance to kill it). Even with a delay, fossil fuel haters are still worked up about the possibility that those rascally Pilgrims will slip across the continent, laying a pipeline in their wake. So, just like other oil pipeline projects, antis began invoking the sacred name of the great Dakota Access Pipeline killing gods to rain down death and destruction on the innocent Pilgrims (see Indians No Friends of the Pilgrims (as in Pipeline)). The antis continue to agitate and invoke the name of Dakota Access Pipeline, doing so at a packed session in Kingston, NY where antis spread lies about the pipeline…
    Read More “300 Turn Out to Oppose Pilgrim Oil Pipe in Kingston, NY”

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    28 NJ & PA Groups Get 7th Round of PennEast Pipeline Grants

    PennEast Pipeline has just released a list of 28 non-profit organizations receiving grants of “up to” $5,000 from the pipeline company. It’s not the first time (see our PennEast grant stories here). In fact, this is the seventh round of community grants given by PennEast, amounting to more than a half million dollars. These very worthy organizations, including fire departments, parks and historical societies (among others) are located in both Pennsylvania and New Jersey. Below is the latest list of grant recipients, along with instructions for how to apply for a grant for your non-profit organization…
    Read More “28 NJ & PA Groups Get 7th Round of PennEast Pipeline Grants”

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    Why President Trump’s OK of Keystone & DAPL is Good for M-U

    Last week President Trump issued a pair of executive orders meant to speed up approval for the Keystone XL and Dakota Access Pipeline projects (see Trump Signs Executives Orders to Restart DAPL, Keystone XL Pipes). We reported that one union in New York State thought such a move may actually help get the Constitution Pipeline project unstuck in the Empire State (see Union Thinks Trump Will be Good for Constitution Pipeline). We kind of chalked up the union’s statements to wishful thinking. But what’s this? A stock market analyst writing on The Street says Trump’s Executive Orders and statements about infrastructure may help a number of Marcellus/Utica projects including the Rover pipeline (Energy Transfer), Northern Access Pipeline (National Fuel Gas), Atlantic Sunrise (Williams), and yes, even the stalled Constitution Pipeline (Williams)…
    Read More “Why President Trump’s OK of Keystone & DAPL is Good for M-U”

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    PA Sen. Casey Encourages Civil Unrest Against Trump, Country

    PA Sen. Bob Casey

    It’s time to call for an impeachment of the bumbling Bob Casey, U.S. Senator from Pennsylvania. The man is not only an idiot (ever hear him talk on the radio or TV?), he’s also dangerous–whipping up global warming nuts into a frenzy and encouraging them to engage in acts of civil unrest. And he’s proud of it! Casey addressed a group of 400 mind-numbed climate hoax robots in Philadelphia, asking them to continue to protest and risk their own safety. But when Casey was asked to join the hoaxers in a march on fellow Sen. Pat Toomey’s office, the coward declined…
    Read More “PA Sen. Casey Encourages Civil Unrest Against Trump, Country”

  • Marcellus & Utica Shale Story Links: Tue, Jan 31, 2017

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: New REX Zone 3 capacity for northeast gas markets; Indian Point nuke closing, how will NY replace 25% of Manhattan’s electricity; Sunoco hiring at Marcus Hook refinery; Trump’s election “complicates” gas politics in PA; rig counts stable in PA; natural gas prices running out of time for a rally; oil prices slip; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jan 31, 2017”

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    Exclusive: MSC’s Dave Spigelmyer Goes On the Record with MDN

    Dave Spigelmyer

    Last Friday MDN editor Jim Willis had the pleasure of speaking (via phone) with the president of the Marcellus Shale Coalition, David Spigelmyer. Some 300 companies make up the membership of the organization–including all of the top exploration & production (E&P) companies and midstream (pipeline) companies operating in our region. Dave himself used to work for Chesapeake Energy once upon a time. He is a Pennsylvania boy, born and bred, and knows the industry inside and out. Dave made time to speak with MDN about a wide range of issues. We should note nothing was “off limits”–Jim asked some tough questions. Below is a transcript of that interview. We tackle topics including the Marcellus industry outlook for 2017, the commodity price of natural gas in our region vs. other locations, the proposed severance tax in PA, various pipeline projects, the Shell cracker, MSC’s lawsuit against DEP Chapter 78a regulations, and the “civil war” between drillers and landowners over the royalty issue. It’s all in there…
    Read More “Exclusive: MSC’s Dave Spigelmyer Goes On the Record with MDN”

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    List of Gas Plants, Pipelines Targeted by Sierra Club

    The nutjobs at the Sierra Club have done us the favor in identifying their next targets: 409 natural gas-fired electric plants and 83 pipeline projects either under construction or planned. We have both full lists below. (Handy lists for those who want to sell something to the builders of those projects!) Global warming nuttery has metastasized into full-blown insanity at the Sierra Club. Even though natural gas produces far less carbon and harmful emissions than other fossil fuels, the Sierra Club is focusing all of their money, time and resources to defeating anything to do with fossil fuels. If they got their way, they would stop an additional 31 gigawatts of electricity from coming online from gas-fired plants (many of them in the Marcellus/Utica region). They would also stop many M-U pipeline projects. Essentially, they want to force all of us back into the Stone Ages–without the benefit of plastics or the use of fossil fuels. Yes, it IS insanity. Below are not only the two lists (gas power plants projects and pipeline projects), but also a copy of the Sierra Club’s latest foray into Joseph Goebbels propaganda–a report called “The Gas Rush: Locking America into Another Fossil Fuel for Decades.” Real bizzaro stuff…
    Read More “List of Gas Plants, Pipelines Targeted by Sierra Club”

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    FERC Commissioner Resigns Threatening Major M-U Pipeline Projects

    FERC Chairman Norman Bay

    Last Thursday, Norman Bay, one of three Federal Energy Regulatory (FERC) Commissioners, announced he would resign effective Feb. 3–this Friday. His unexpected resignation directly threatens a number of critical pipeline projects in the Marcellus/Utica. It appears to us to be a revenge resignation–an attempt to screw the Trump Administration. Bay is a Democrat. In fact, all three sitting FERC Commissioners are Democrats. FERC is supposed to have five Commissioners–but there have been two empty slots since last September when Republican Tony Clark left. Last week President Donald Trump announced he would elevate sitting Commissioner Cheryl LaFleur to become Chairman of the Commission, replacing Bay in that role. It should be noted LaFleur has been on the Commission since 2010 and has been, at various times, Acting Chairman and full Chairman. In fact, Norm Bay was elevated by Obama to become Chairman, replacing LaFleur in that role. Did LaFluer leave in a huff? No. She stayed to do the important work of the Commission. Now that the roles are reversed, Bay seems to be bent on revenge against Trump–placing important pipeline projects in danger of not getting timely approvals. It takes three members to have a quorum, to approve projects. Some (including THE Delaware Riverkeeper) are pushing for a block on new appointments to FERC–meaning FERC’s work stops cold. Three critically urgent M-U projects have asked FERC to approve their projects THIS WEEK, before Bay leaves: NEXUS (Spectra Energy), Leach XPress (Columbia Pipeline/TransCanada), and Atlantic Sunrise (Williams)…
    Read More “FERC Commissioner Resigns Threatening Major M-U Pipeline Projects”

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    Marcellus/Utica NGLs “Becoming More Lucrative” – 3rd Cracker Coming?!

    Last week we brought you a few pickings from the Hart Energy Marcellus-Utica Midstream Conference and Exhibition held in Pittsburgh. One of those pickings were comments from Williams CEO Alan Armstrong and his prediction that production in the Marcellus/Utica would go up by 65% in the next five years (see Williams CEO Says M-U Production Will Grow 65% in 5 Yrs). Another was comments from the Pennsylvania Department of Community and Economic Development which is about to release a new study that our region could comfortably host another four giant ethane cracker plants (see PA Report Says Marcellus/Utica Can Support Up to 4 More Crackers). Below are more comments from the event about NGLs (natural gas liquids), including a stray comment by one person in-the-know who said he’s been approached about hosting a new/third cracker plant in the region…
    Read More “Marcellus/Utica NGLs “Becoming More Lucrative” – 3rd Cracker Coming?!”

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    Japanese Company Building NatGas Power Plant in (Yes) New York

    Somehow, someway, a new natural gas-fired electric plant is in the process of getting built–in anti-fracking New York State (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). Unfortunately it seems that part of the reason it slipped through and got an approval involved a corrupt (and very close) aide to NY Gov. Andrew Cuomo (see NY NatGas-Fired Electric Plant an Inside Job for Corrupt Cuomo Aide). We have news: a second natgas-fired electric plant is now planned in neighboring Dutchess County, NY. The 1,100 megawatt plant is majority owned by JERA Co., Inc., a Japanese company. We have the details below…
    Read More “Japanese Company Building NatGas Power Plant in (Yes) New York”

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    Range Resources Proved Reserves Up 22% to 12.1 Tcfe, Dev Costs Down

    Range Resources released details on their proved reserves last Friday. The company reports proved reserves are 12.1 trillion cubic feet equivalent (Tcfe), a 22% jump from 9.9 Tcfe at the end of 2015. Excluding acquisitions and divestitures, Range’s proved reserves were actually up 11%. Range CEO Jeff Ventura said the company replaced 292% of production from its drilling activities in 2016. They have driven down development costs to 34 cents per thousand cubic feet. If it costs an average of 87 cents to gather and get the gas to market (PA IFO estimate), that means it costs Range $1.21 to find, extract and get the gas to market. Range’s announcement was pretty amped-up on their newest purchase of acreage in Louisiana. However, in 2016, almost all of the added proved reserves came in the Marcellus–1,315 out of 1,394 billion cubic feet (or 94%)…
    Read More “Range Resources Proved Reserves Up 22% to 12.1 Tcfe, Dev Costs Down”

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    Baker Hughes 4Q & Full Year 2016 – Ink Runs Red, but Slowing

    Oilfield services company Baker Hughes, with major operations in the Marcellus/Utica, posted its fourth quarter and annual 2016 results last week. Financially speaking the numbers were a river of red. BH lost $2.7 billion in 2016 vs. losing $1.9 billion in 2015. However, when you look at the later half of the year, and the fourth quarter in particular, the numbers started to improve. BH lost $417 million in 4Q16 vs. losing $1 billion in 4Q15. The bleeding slowed. BH CEO Martin Craighead, in responding to a question about the company’s North American shale business, said, “So equipment goes where it’s loved the most, and not every basin in North America is created equal right now in terms of pricing.” Hmmm. We wonder if the Marcellus/Utica is loved? Below is the update…
    Read More “Baker Hughes 4Q & Full Year 2016 – Ink Runs Red, but Slowing”