Marcellus Drilling News

Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

FERC Delays PennEast Pipeline Final Review – Again
November 10, 2016January 24, 2017

Back in April the Federal Energy Regulatory Commission (FERC) told PennEast they would extend the amount of time they are taking until December of this year, rather than this past August, to complete their Environmental Review (see PennEast Spins FERC Delay as a Good Thing – Optimism or Denial?). PennEast is a $1 billion, 118-mile, primarily 36-inch pipeline that will get built from Dallas (Luzerne County), PA to Transco’s pipeline interconnection near Pennington (Mercer County), NJ. PennEast tried to spin the news as a positive. We took it as mildly bad news. On Tuesday FERC once again told PennEast they are moving the goal posts–delaying the final Environmental Review from December to next February. Once again, we don’t think this is good news. The longer final approval (and construction) are delayed, the more likely anti-fossil fuel zealots will new ways to try and kill the project, which is their aim…
Read More “FERC Delays PennEast Pipeline Final Review – Again”
Energy Services | Hydraulic Fracturing | Industrywide Issues | Utica Shale | Weatherford Intl

Utica Drillers Using Managed Pressure Drilling (MPD)
November 10, 2016November 10, 2016

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This post is far (far) more technical than the typical post on MDN. It is aimed at those in the drilling business. However, a general understanding will help everyone interested in what’s happening in the Utica Shale. We spotted a story that claims MPD–or managed pressure drilling–is emerging as the “preferred” drilling method in the Utica Shale. The article is written by engineers who work for Weatherford, the world’s fourth largest oilfield services company (and a company with major customers/operations in the Utica, i.e. a vested interest). The first, most obvious question is: What in the world is MPD? We went looking for a layman’s definition. The simplest definition we found was, “cheating Mother Nature.” MDP involves managing the pressure in the well, and drilling mud…
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Electrical Generation | Industrywide Issues

CT NatGas-Fired Power Plant Approved, Where Will it Get the Gas?
November 10, 2016November 10, 2016

Last week a plan to build a $550 million natural gas-fired electric generating plant in the city of Bridgeport, CT was approved by city zoning officials. PSEG Power Connecticut currently operates a coal-fired plant in the same location and wants to build a 485-megawatt facility at the same address. The only remaining obstacle is an air permit from CT environmental protection officials, which is expected to be issued early next year. Once the air permit is in hand, PSEG plans to begin construction. Our question is, with no extra pipeline capacity serving New England, where will they get the gas to power the plant?…
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CNG/LNG | Industrywide Issues | Pipelines

Berkshire Gas (Mass.) Searches for Solutions to Get More NatGas
November 10, 2016November 10, 2016

In December 2014 the Massachusetts-based utility Berkshire Gas Company announced the amount of natural gas they could purchase from the Tennessee Gas Pipeline (TGP) was at full capacity. There’s no additional gas supplies to buy–unless TGP builds their Northeast Energy Direct (NED) expansion project. So Berkshire was forced to tell new customers for natural gas in portions of Franklin County they won’t be able to tap into Berkshire’s line (see Guts: No New Pipeline in MA? Then No New Natgas for Utility Customers). In January 2016, Berkshire had to expand the prohibition area, turning down new businesses in neighboring Hampshire County (see Shortages Begin: Tangible Result of No Pipelines in New England). In April came the devastating news that TGP was canceling the NED pipeline project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). What can Berkshire Gas do? Where can they turn now? Is there ANY hope that new residences and businesses in Franklin and Hampshire counties can hook up to natural gas? Berkshire is having to deal with the crappy hand dealt them. They are trying to find a way to get more gas supplies for their customers. They have a plan to build a short, 19-mile pipeline to deliver new supplies. Predictably, the idiots living in the affected areas are resisting the plan…
Read More “Berkshire Gas (Mass.) Searches for Solutions to Get More NatGas”
Energy Services | FMC Technologies | Industrywide Issues | M&A

Technip & FMC Technologies Shareholders Vote Dec 5 on Merger
November 10, 2016November 10, 2016

In May, U.S.-based oilfield services company FMC Technologies announced they will merge with their much larger quasi-competitor, France-based Technip, in an all-stock deal that will create a new company called TechnipFMC worth $13 billion (see FMC Technologies & Technip to Merge, Create $13B Oilfield Giant). FMC had/has some operations in the Marcellus/Utica, hence the merger has implications for our region. The Obama Dept. of Justice approved the deal in June (see FMC Technologies/Technip Merger Approved by Obama DOJ/FTC). Apparently it’s A.O.K. for a French company to buy an American company, but when one American company (Halliburton) wanted to buy another (Baker Hughes), that wasn’t OK with the Obamadroids (see (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). But we digress. On Dec. 5 shareholders in both companies will vote on the deal. If they vote “yes,” as it expected, the deal with close and the two will have their nuptials in early 2017…
Read More “Technip & FMC Technologies Shareholders Vote Dec 5 on Merger”
Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH

Ohio DMA Decision Explained at December Seminar in Columbus
November 10, 2016November 10, 2016

MDN has highlighted the importance of the Ohio Supreme Court’s decision with regard to the Ohio Dormant Mineral Act (DMA). In September the OH Supreme Court ruled in three DMA cases, saying all of the other cases come under those three (see Important: OH Supreme Court Finally Rules on Dormant Mineral Act). Following that ruling, we brought you insights on what it means from international law firm Jones Day (see One More Look at Important OH Supreme Court DMA Decision). We later ran a copy of an analysis done by attorney David Wigham, who said, “[T]he landscape regarding title and ownership to mineral interests in Ohio has significantly changed” (see Expert Says OH DMA Decision “Significantly Changed” Mineral Rights). An MDN subscriber from a major Ohio driller reached out to editor Jim Willis to ask for help in promoting an event being hosted by the Energy & Mineral Law Foundation for lawyers on the topic of the recent DMA decision. We are happy to do so given the importance of the decision and its profound effect on both drillers and landowners in the Buckeye State. Here’s the lowdown on the Ohio Dormant Mineral Act Special Institute, Dec. 12 in Columbus, OH…
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Anti-Drilling/Fossil Fuel | Industrywide Issues

Global Warming Hoaxers Have a Cow over Trump Victory
November 10, 2016November 10, 2016

As soon as Donald Trump secured victory in Tuesday’s presidential election, the hew and cry went up from radical environmentalists that his election spells the end of Mom Earth. Trump is rightly skeptical of claims that mankind is causing a catastrophic warming of the earth–namely because there’s no evidence to support it. No objective “average” temperature data that shows the earth warming up by burning fossil fuels, as is the claim. But global warmers, who have changed their name to climate changers, won’t listen to reason. Their belief in man-made global warming surpasses the fervency of belief by most people in a Supreme Being (i.e. God). Global warming is their religion, and no amount of discourse and debate will convince them otherwise. So when Trump, a “climate denier” as they call him, won–it was for them a disaster. Barack Hussein Obama has been the warmers’ best friend. But there’s a problem with the way Obama achieved his environmental agenda–he did it by fiat. By executive orders. By using executive branch agencies like the EPA and BLM and others to implement his wishes apart from having those wishes enacted in legislation. And what one president can do with executive orders, another can undo with executive orders. Obama’s entire environmental agenda is built on sand–a house of cards. And it’s about to gloriously come crashing down with President Trump. And that fact has warmers sweating…
Read More “Global Warming Hoaxers Have a Cow over Trump Victory”
CNG/LNG | Industrywide Issues

Will Charif Souki Renounce His American Citizenship?
November 10, 2016November 10, 2016

As we pointed out to you last December, evil corporate raider Carl Icahn (invests in companies so he can fire a bunch of people, boost the stock and pocket the profit) had fired Cheniere Energy CEO Charif Souki (see Evil Corporate Raider Carl Icahn Claims Another CEO Scalp). He later admitted it on CNBC (see Corp Raider Carl Icahn Admits He Fired Cheniere CEO Charif Souki). Souki hasn’t let it slow him down. He started a new LNG export company to compete with his old company (see Revenge: Fired Cheniere CEO Starts Competing LNG Company). We kind of had (past tense) a soft spot for Souki, getting tossed from the company he started. But then we read comments he made about Donald Trump two weeks ago. Souki thought (like many) that Trump had no chance of winning, but if he did, Souki said he would “reconsider my nationality.” He was born in Egypt but is an American citizen now. After Trump’s victory, Souki seems to have forgotten about his threat to leave the country and change his citizenship. Can anybody say “two-faced”?…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Nov 10, 2016
November 10, 2016November 10, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Vallourec reports $176M loss; EQT takes smart tech for a spin; President Trump will make Amercian energy great again; fracking played major role in election; investors snap up $28B in U.S. drillers; global shale lurking; and more!
Read More “Marcellus & Utica Shale Story Links: Thu, Nov 10, 2016”
Hydraulic Fracturing | Industrywide Issues | Regulation

Trump Victory Good News for the Shale Industry
November 9, 2016November 9, 2016

Donald Trump’s victory in winning the presidency–whether you voted for him or not–is a victory for the oil and gas industry. Fracking is now not in danger of being banned, as it would have been with Hillary Clinton. The Washington “swamp” (“wetland” for greenies) as Trump and his running mate Mike Pence call it–is about to get drained. That includes the rogue, out-of-control Environmental Protection Agency, among others. Radical environmentalists are shocked and suicidal. We’re delighted! The people of this country have spoken…
Read More “Trump Victory Good News for the Shale Industry”
Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

PA Judge Temporarily Blocks Some DEP Chapter 78a Drilling Regs
November 9, 2016November 9, 2016

On Oct. 8, after five years in the making, Pennsylvania adopted new shale drilling regulations (see PA’s New Chapter 78a Drilling Regs Go into Effect Oct 8). Although the regs were ready at the end of the Gov. Tom Corbett Administration, Corbett fumbled the ball and the regs didn’t get adopted, which left them vulnerable to the incoming left-leaning Tom Wolf. Wolf’s people mangled the regulations under the Dept. of Environmental Protection Dictator/Secretary John Quigley, who got fired over unethical collusion with Big Green groups. Some of the good stuff remained, but onerous new elements were introduced. The Marcellus Shale Coalition (MSC), which represents PA’s biggest shale drillers, filed an appeal in Commonwealth Court to block the most onerous aspects of the new regulations (see Marc. Shale Coalition Files Lawsuit to Block PA Chapter 78a Regs). When the court judge held a hearing on the matter, he was shocked the MSC didn’t call any witnesses (i.e. shale companies) adversely affected by the new regs (see Judge “Shocked” MSC Didn’t Present Witnesses @ Chapter 78a Hearing). However, that same judge yesterday decided the MSC has a case, at least with some of the new rules. So he has temporarily blocked some of the items the MSC objected to in its lawsuit, including rules governing freshwater impoundments…
Read More “PA Judge Temporarily Blocks Some DEP Chapter 78a Drilling Regs”
Energy Services | Industrywide Issues | Pipelines | Spectra Energy

More M-U Gas Flows to Canada via Expanded Dawn-Parkway Pipeline
November 9, 2016November 9, 2016

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Last week Union Gas, a major Canadian natural gas storage, transmission and distribution company based in Ontario (and a subsidiary of Spectra Energy), completed the second phase of a three-phase expansion of its Dawn-Parkway System, which links markets in eastern Canada and the northeast U.S. with the Dawn Hub. The $391 million (Canadian dollars) expansion will deliver more Utica and Marcellus Shale natural gas to markets in eastern Canada and the northeast U.S. When the third and final phase is completed next year, the expanded Dawn-Parkway pipeline will flow an extra 1.2 billion cubic feet per day (Bcf/d) of Utica/Marcellus gas. This is an important new market for our gas…
Read More “More M-U Gas Flows to Canada via Expanded Dawn-Parkway Pipeline”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Mahoning County | Ohio | Regulation

Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time
November 9, 2016November 9, 2016

As MDN reported in June, anti-drilling zealots in Youngstown, OH filed a petition to place a frack ban resolution on the November ballot–for the 6th time (see Brain Dead: Youngstown Antis File Petition for 6th Frack Ban Vote). The petition held up, there were just enough signatures. And once again yesterday, as the five times that preceded it, Youngstown voters rejected the misnamed, so-called Community Bill of Rights ballot measure–yet another humiliating defeat for the PA-based Community Environmental Legal Defense Fund (CELDF) which is behind the measure. The measure was voted down by an 11-point margin (i.e. landslide against it). As the five times before, recalcitrant antis say they will try yet again, and keep trying…
Read More “Youngstown, OH Frack Ban Ballot Measure Defeated for 6th Time”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Meigs County | NEXUS Pipeline | Ohio | Pipelines | Regulation

Waterville, OH Passed NEXUS Pipeline Ban, Certain to Get Overturned
November 9, 2016November 9, 2016

We’ve written plenty in the past about the PA-based radical anti-drilling group called CELDF–Community Environmental Legal Defense Fund (see our CELDF stories here). CELDF seems to have a lot of success in tricking people in Ohio into believing they can pass a so-called Community Bill of Rights to ban fracking, injection wells, etc.–illegal under Ohio state law. When such legislation is passed and then gets challenged, it loses in court. Every time. And when private companies sue for damages, taxpayers end up footing the bill and the CELDF is nowhere to be found (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). The CELDF went pedaling their pap in Meigs County, OH, to the City of Waterville, and they found fertile ground, getting a “Bill of Rights Charter Amendment” on the ballot yesterday, meant to stop the NEXUS Pipeline from going through town (see PA-Based CELDF Looks for New Dupes in Meigs County, OH). Unfortunately the citizens of Waterville fell for it and voted to approve the ballot initiative. Thing is, as soon as it’s challenged in court (and you can bet your last dollar it will be challenged), it will get overturned, just like every other time these CELDF measures have been challenged. The taxpayers will have to pay to defend their folly…
Read More “Waterville, OH Passed NEXUS Pipeline Ban, Certain to Get Overturned”
Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Litigation | Pipelines

Court Setback for NJ Pipeline Slated to Run Through Scrub Pines
November 9, 2016November 9, 2016

In January 2014, MDN brought you the story that due to incessant nagging from the NJ Sierra Club and the NJ League of [Liberal Democrat] Women Voters the Pinelands Commission, which oversees a stand of scrub pines in South Jersey, nixed a plan for a new natural gas pipeline to bring cheap, clean, abundant Marcellus Shale natural gas to South Jersey for use by residents and to feed an electric plant a local utility wants to convert from burning coal to natgas (see Sierra Club, LWV Chooses Coal over NatGas in South Jersey). In May 2014, NJ Gov. Chris Christie replaced two of the “no” voters on the Pinelands Commission, much to the consternation of the antis (see Marcellus Pipeline May Come to South Jersey After All). In August 2015, the staffers who actually do the work of the Commission decided to act, saying that they had the authority to approve the pipeline without a full Commission vote to do so. A panel of three New Jersey Appellate Division judges on Monday rejected that claim and said if you want to build a pipeline through the scrub pines, the full Commission must vote to do so…
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CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Regulation | Statewide MD

Radicalized Sierra Club Files Cove Point Appeal in DC Court
November 9, 2016November 9, 2016

The Sierra Club, which may have been founded for good reasons, long ago left the realm of sanity. Sierra Clubbers, as we call them, now live in an alternative universe where clean-burning natural gas and all fossil fuels are from the devil himself. The Clubbers have tried to get multiple LNG (liquefied natural gas) export facilities blocked on the theory that if you cut off the demand you can cut off the supply (i.e. end fracking of new wells). Yeah, crazy. But that’s what they’re trying. Lately they’ve tried to attack and bully both the Dept. of Energy and the Federal Energy Regulatory Commission. With legions of lawyers, they file frivolous lawsuit after frivolous lawsuit, hoping if they throw enough legal (ahem) feces against the wall, some it will stick. So far it hasn’t. One of the facilities the Sierra Club continues to fight against is Cove Point LNG in Maryland. They filed an appeal of a Dept. of Energy approval to allow Cove Point to export LNG to non-free trade agreement countries–namely Japan and India. Yep, the Sierra Club doesn’t want us to help out Japan or India. They’d rather have us help Saudi Arabia and Qatar, apparently. After the appeal went nowhere, the Clubbers have no sued in the uber-liberal D.C. Circuit Court of Appeals. Thing is, that very same court recently handed the Sierra Club a defeat in a similar case…
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