Planned OH Utica-Powered Electric Plant Goes from 1,100 to 1,650 MW
In April 2016 MDN told you about the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for Guernsey County, OH (see New Utica-Powered Electric Plant Proposed for Guernsey County, OH). Apex Power Group at that time said they want to build a large 1,100 megawatt plant in Valley Township–producing enough electricity to power 1 million homes. The plant will generate 500 jobs during construction, and 25 full-time jobs to operate the plant when it’s completed. Apex says construction is targeted to begin in 2018 and will go online in 2020. The good news is that Apex and joint venture partner Caithness Energy have now filed a pre-application for the project–and the application shows they no longer want to build an 1,100 megawatt plant, they now want to build a whopping 1,650 megawatt plant! That’s the biggest natgas-fired electric plant we’ve heard of so far–anywhere. The previous title-holder was Dominion’s 1,600 megawatt plant currently under construction in Greensville County, VA (see Dominion Begins Building Virginia’s Biggest NatGas Power Station). Here’s more about the Guernsey Power Station…
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In the closing days of 2016, Gulfport Energy, an Oklahoma City-based independent oil and natural gas exploration and production company (“driller”) that is a “top 5” driller in the Ohio Utica Shale, announced that its chief financial officer (CFO) has up and left. Just like that. Aaron Gaydosik, Gulfport CFO, is leaving “to pursue an external opportunity.” While defections in the top ranks of big drillers like Gulfport are not unheard of, they do give investors the jitters. And it makes one wonder what’s going on at the company, given that Gaydosik had only been in that job for the past 2.5 years. Was he pushed out? Did he find a better gig? Inquiring minds want to know…
Last week the Pennsylvania Department of Labor and Industry released employment numbers for the Marcellus industry for the second quarter of 2016. Yes, you read that right–the jobs numbers released were for 2Q16, April through June. Why such a delay? Who knows!? What followed is instructive. The numbers show that year over year, from 2Q15 to 2Q16, those employed by the Marcellus industry went down by 32%. However, the same report shows overall those directly employed by the drilling industry doubled over the past nine years. Yes, we hit a down cycle and lost some jobs, but we’re still light years ahead (and a heck of a lot better off) than where we were just a decade ago. Also keep in mind: we are once again on the upswing with jobs, since 2Q16…
Each weekday Marcellus Drilling News locates and shares news from the Marcellus and Utica Shale. Over 50,000 people read MDN each month. Here is a summary of the top 10 most-read stories on MDN for all of 2016. We hope this will give you insight into what stories captured the interest of those in the industry, and landowners as well. Let’s do this David Letterman Top 10 style…
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Friends and foes wait on appeals court for ruling in Constitution Pipeline; OH voters want no part of frack bans; natgas shows signs of returning to Lycoming County; PA Gov Wolf rejects natgas-powered data center, kills 500 jobs; Spectra paying $1.2 million to run pipe through few miles of New England forest; shale gas in north Georgia?; RBN’s top 10 for 2017; Trump’s energy policy; what lies ahead for 2017; and more!
A significant court case was decided last week in West Virginia. The WV Supreme Court ruled in a gas royalty case that not only has significant implications for WV landowners (and drillers), but also may reverberate across the border into neighboring Pennsylvania where the same issue has been a long and contentious fight–what we call a civil war between landowners and drillers. Like all such cases, this one is complicated and not easy to summarize, but we’ll do our best. The WV Supremes have just handed down a decision that says, in essence, that EQT (and by extension other drillers) cannot deduct post-production expenses when calculating royalty payments to landowners. Specifically, the justices in their ruling said that drillers can “not deduct from that (royalty) amount any expenses that have been incurred in gathering, transporting or treating the oil or gas after it has been initially extracted, any sums attributable to a loss or beneficial use of volume beyond that initially measured or any other costs that may be characterized as post-production.” Yikes! That is fantastic news for landowners who now have a case to recoup money deducted from their checks–and really bad news for drillers who will owe that money. The big winners are, of course, the lawyers who will litigate this for years to come. However, hold on to those briefs–EQT has just appealed the decision, asking the WV Supreme Court to reconsider their decision, gently chiding the court for erring in their interpretation of state law on royalties…

In August, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express (see
The legal beagles at global law firm Norton Rose Fulbright continue to do us all a huge favor. Researchers at the law firm issue a quarterly legislative action update looking at bills and laws previously voted on, and new bills/laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. The “Quarterly legislative action update: Marcellus and Utica shale region” for 4Q16 (full copy below) begins with a quick listing by state for existing or new laws introduced, with descriptions for each bill/law. This is, in one place, pretty much everything you need to know about what new laws (i.e. regulations) are coming down the pike that will affect the Marcellus and Utica Shale drilling industry…
In March of this year, MDN told you that LNG Limited (from Australia) registered with the Canadian government for an environmental assessment for a pipeline they want to build in Nova Scotia–the Bear Paw Pipeline (see
Lisa Badia, executive director of the Greater Wheeling Coalition for the Homeless “can’t be certain how many homeless people dwell in Hancock, Brooke, Ohio, Marshall and Wetzel counties,” but she is certain that part (much?) of the homeless problem is caused by Marcellus/Utica Shale drilling. Yep, sinking a hole in the ground causes homelessness. How? According to Badia, when drilling came to town 4-5 years ago, a bunch of out-of-staters showed up to work on drilling rigs (and for pipeline companies, etc.). Those out-of-staters began paying sky-high rental rates for apartments and trailers, driving up the price of rental housing throughout the region. And when that happened, folks on welfare could no longer afford to pay the rent (with our taxpayer money). If it’s a decision between booze and cigs or rent, you know what goes! So those po’ folk ended up sleeping on heating grates–because of that nasty, awful fossil fuel drilling…
Earlier this week so-called researchers at the University of Iowa released a tragically flawed study that purports to say Marcellus Shale drill cuttings (rock and dirt from drilling) are radioactive and if you put them in your landfill, you’ll start to glow in the dark. That’s the upshot from “research” that used just three samples FROM A SINGLE WELL as the basis of the “study.” This is anti-fossil fuel hogwash by a group of grad students who want to launch their careers by making a name for themselves. What they’ve actually done is ended their short careers with shoddy research. The paper is titled “Disequilibrium of Naturally Occurring Radioactive Materials (NORM) in Drill Cuttings from a Horizontal Drilling Operation” and appears in the journal Environmental Science & Technology Letters. Below is a summary of the “research” followed by an analysis by MDN friend and intrepid writer Nicole Jacobs, writing for Energy in Depth. Nicole rips apart this new study and exposes its tragic flaws…
Yesterday MDN updated you on the situation with Stone Energy and their filing for bankruptcy (see
Pennsylvania Gov. Tom Wolf is stealing $300 million from PA taxpayers and giving it to union bosses in Philadelphia–and everyone is celebrating like it’s some great thing. As we previously reported, over the past two years Philadelphia Energy Solutions (PES) has been on a mission to expand their operation at the Southport Marine site in Philadelphia by leasing an additional 200 acres to build a terminal for shale oil imports and exports (see