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Marcellus Drilling News
  • Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Washington County

    Peters Twp Gives the Middle Finger to Drillers One Final Time

    September 30, 2016September 30, 2016

    peters-twp-washington-county-paPeters Township, the most populous township in Washington County, PA, is one of the seven selfish towns that sued the state over the zoning provisions in the Act 13 law, eventually winning at the PA Supreme Court level (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The Act 13 victory gives townships the right to pass local zoning ordinances that restrict–but don’t ban–Marcellus/Utica drilling. Peters has been adept at using the victory to keep drilling banned by “studying” the issue to death (see Peters Twp, PA Pretends to Debate Ordinance to Allow Drilling). That pattern of behavior continued into last year (see Peters Twp, PA Continues to Delay Drilling by “Studying” It). Sooner or later you have to come down on one side or the other, and Monday night Peters decided–to screw Marcellus drillers. Town council passed a new drilling ordinance (4-2) that says drilling is ONLY allowed in areas zoned for industrial uses, which rules out areas zoned for agricultural uses (where most drilling happens). Even the drilling in industrial areas, a grand total of 138 acres in the township, will have to be a “conditional use” with loads of permits and reviews. In other words, Peters just flipped off the drilling industry, telling them “don’t ever bother drilling here”…
    Read More “Peters Twp Gives the Middle Finger to Drillers One Final Time”

  • Industrywide Issues | Pipelines

    Status Update on Major Pipelines in the Marcellus/Utica

    September 30, 2016September 30, 2016

    update.jpgAt last week’s Shale Insight conference in Pittsburgh, this this past Wednesday at Platts’ Benposium East conference in New York, there was one topic of conversation that pretty much dominated the discussion: pipelines. Without new “takeaway” capacity in the northeast, we’re in trouble. Many types of people watch the pipeline space for varying reasons. Investors keep an eye on it because they want to invest, or they’ve invested in producers who need to get their gas (and oil) to market. Upstream (drillers) are vitally interested. Midstream (pipeline) companies are interested, needless to say. But so too are the construction companies, much of whose livelihood depends on building the pipelines. So it makes perfect sense that an industry magazine like Construction Equipment Guide would run an article updating their readers on the status of various pipeline projects. Most of the projects in the list are in the northeast, or somehow connected to production coming from the northeast. Below is their helpful roundup listing important, major projects–with a description and the current status of the project…
    Read More “Status Update on Major Pipelines in the Marcellus/Utica”

  • Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

    PA’s Supreme Court Orders Up the Impossible re Act 13

    September 30, 2016September 30, 2016

    cluelessYesterday MDN reported that the Pennsylvania Supreme Court has essentially gutted the rest of the Act 13 drilling law passed in 2012 (see PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again). One of the four provisions in the law eviscerated in the most recently ruling deals with notifications following a spill of chemicals or frack wastewater. The Act 13 law provided for a mechanism (requirement) that local public water drinking systems be notified following a spill. Immediately. But the law did not provide for the same notification to owners of private water wells. Why was that? Was it a sweetheart deal with evil, nasty frackers who don’t care if they poison the water wells of nearby residents–interested only in money? Uh, no. The fact is Pennsylvania is one of the few states that does not regulate private water wells, so there is no registry, no way to know WHO to inform in case of a spill. How can you require a company to do something when there is no way to do it? Which raises this question: Do the Democrats on the Supreme Court who made this decision even understand the issue at all? Are they totally clueless?…
    Read More “PA’s Supreme Court Orders Up the Impossible re Act 13”

  • Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

    PA Supreme Court’s Final Evisceration of Act 13 – Big Deal or Not?

    September 30, 2016September 30, 2016

    eviscerationFollowing up on yesterday’s Pennsylvania Supreme Court decision to eviscerate the rest of the 2012 Act 13 drilling law (see PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again), there have been a number of articles and reactions to the decision. Most point out that the items struck down by the Supremes in their great wisdom were not really being followed or implemented after earlier court cases questioned Act 13. But some maintain there are aspects of this week’s decision that portend future trouble for the drilling industry, while others say it’s no big deal. Here’s one on each side of the issue…
    Read More “PA Supreme Court’s Final Evisceration of Act 13 – Big Deal or Not?”

  • Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream | Industrywide Issues | Monroe County | Ohio | Pipelines | West Virginia | Wetzel County

    FERC Tells Ohio Valley Connector Project to Open the Valves

    September 30, 2016October 5, 2016
    ovc-overall-05282015
    OVC Project – click for larger version

    10/4/16 UPDATE: EQT Confirms the gas began flowing on Oct 1, the day after this post. See EQT’s statement below.

    The Ohio Valley Connector (OVC) project is a proposed natural gas pipeline system approximately 37 miles long running from northwestern West Virginia into southeastern Ohio. Equitrans, a subsidiary of EQT Midstream which is itself a subsidiary of EQT the driller, is building the pipeline. We reported in July 2014 that the project was green lighted. At that time, EQT CEO David Porges said the pipeline will interconnect with both the Rockies Express Pipeline and the Texas Eastern Pipeline and will provide about 1 billion cubic feet (Bcf) per day of capacity (see EQT Midstream: 2 Major Pipeline Projects Advance, 1 Doesn’t). In July 2015 we ran a story disclosing that the main customer for the new pipeline is one of EQT’s biggest competitors, Range Resources (see EQT Midstream Building $250 Million Pipeline – for Range Resources!). Fast forward to today. The pipeline’s project cost has gone up, to $415 million. But the really good news is that the pipeline is now built, and the Federal Energy Regulatory Commission (FERC) has just given EQT permission to turn it on…
    Read More “FERC Tells Ohio Valley Connector Project to Open the Valves”

  • Chesapeake Energy | Energy Companies

    Everybody Just Subpoenaed Chesapeake Energy for Everything

    September 30, 2016September 30, 2016

    subpoenaSince before Aubrey McClendon left the helm at Chesapeake Energy, the company has been controversial and to one degree or another, in hot water. Legally. You’ve read plenty on MDN about who’s sued Chessy, over royalties, over collusion on land deals, over nonpayments to suppliers. You’ve also read about various investigations by various government entities into Chesapeake and their practices. It appears like it’s all reaching a fevered pitch. Yesterday Chesapeake filed disclosure forms with the Securities and Exchange Commission which says the U.S. Dept. of Justice, a number of states, and even the U.S. Postal Service have served the company with subpoenas for information. In essence, everyone has subpoenaed Chesapeake for everything…
    Read More “Everybody Just Subpoenaed Chesapeake Energy for Everything”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Fri, Sep 30, 2016

    September 30, 2016September 30, 2016

    best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: 5 takeaways from Shale Insight; PA cracker construction moves ahead at fast pace; natgas pipeline network to reach capacity in 6 mos; gas drillers could see $4/Mcf in 2017, for a short time; OPEC’s “truce on oil prices” may not last long; Chesapeake looks to sell the Haynesville for $1B; western Canadian gas may go east for export as LNG; and more!
    Read More “Marcellus & Utica Shale Story Links: Fri, Sep 30, 2016”

  • Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

    PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again

    September 29, 2016September 29, 2016

    Gavel-falling.jpgThe Democrat-controlled Pennsylvania Supreme Court ruled yesterday in another (hopefully final) decision on the 2012 Act 13 Marcellus drilling law passed and signed by then-Gov. Tom Corbett. Four Democrat judges have just struck down more of Act 13, leaving not much left except the part that raises money and gives it away (called an impact fee, otherwise known as a severance tax). You will recall that seven selfish towns sued the state over the Act 13 law and it’s provision that would substitute a statewide, uniform and fair set of zoning ordinances for drilling in place of a patchwork, crazy quilt system of local ordinances for oil and gas drilling. These seven selfish towns wanted their own ordinances and sued, ultimately winning at the Supreme Court (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). The PA Supremes couldn’t, however, be bothered with deciding every tiny bit of nuance and sent some items back to the lower Commonwealth Court for final decisions. Following several cases in the lower courts, some of it came back to the Supreme Court for a final decision, and that just happened. The Supreme’s ruling (full copy of their decision is embedded below) affects the use of eminent domain, what information can be shared by doctors as it relates to privileged trade secrets for drillers, and most importantly, a decision that ends the right of the PA Public Utility Commission (PUC) to keep an eye on the zoning regulations passed by towns, to ensure those regulations don’t supersede state oil and gas regulations. Most of Act 13 is now down the toilet, thanks to four left-wing Democrat judges…
    Read More “PA Supreme Court Rules Against Act 13 Drilling Law, Yet Again”

  • Uncategorized

    Rice Energy Ramps Up Leasing Activity in Greene County, PA

    September 29, 2016October 7, 2016

    greene-county-paEarlier this week MDN brought you the dynamite news that Rice Energy is buying out Vantage Energy for $2.7 billion (see Rice Energy Buys Vantage Energy for $2.7B, 85K Marcellus Acres). The next day we answered they “why” question (see Why Did Rice Energy Pay $2.7B for Vantage Energy? It’s Simple…). The reason Rice bought Vantage was largely because of 85,000 acres of Marcellus leases in Greene County, PA. What we had overlooked was the fact that 27,000 of the 85,000 acres in Vantage’s Greene County portfolio was acreage they just bought from bankrupt Alpha Natural Resources (see Vantage Outbids Rice For Bankrupt Alpha Natural’s 27K Marcellus Acres). Rice had bid $200 million for that acreage, but Vantage came along and got it for $339.5 million. Now that Rice has locked up the Vantage acreage in addition to its own considerable holdings in Greene County, what’s left to do? Lease more unleased acreage in Greene. Rice says there is between 20,000-40,000 unleased acres in Greene and the company is full speed ahead trying to get that acreage signed up for themselves. Note to Greene landowners: expect a landman on your doorstep soon…
    Read More “Rice Energy Ramps Up Leasing Activity in Greene County, PA”

  • Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

    Maryland Beats Deadline, Submits Onerous New Fracking Rules

    September 29, 2016September 29, 2016

    deadlineLast week the Baltimore Sun ran an article (a portion of which we picked up) that said “sources” were telling the Sun that the Maryland Dept. of the Environment (MDE) would miss a deadline to submit revisions to revisions of revisions of fracking regulations that will allow the state to begin fracking on or about October 1, 2017 (see Maryland Will Miss Important Fracking Deadline on Oct 1). In order to meet the 2017 deadline when the current two-year moratorium expires, the new revisions must be issued by October 1, 2016, a year earlier. The Sun said that wouldn’t happen. But it did. In releasing the new revisions yesterday, Maryland Secretary of the Environment, Ben Grumbles, called the new regulations “the most stringent” regulations in the country. Strangely, a copy of the new revisions just released can’t be found on the MDE website. What we know from various news accounts is that there will be no drilling or fracking within 2,000 feet of a private water well. And that’s just one of the show-stopping requirements. Translation: there never will be any fracking in Maryland, mark our words. Or if there is, it will be isolated and rare as hen’s teeth…
    Read More “Maryland Beats Deadline, Submits Onerous New Fracking Rules”

  • Dauphin County | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

    PA Landowners Rally in Harrisburg to Support Royalty Bill

    September 29, 2016September 29, 2016

    Pennsylvania State CapitolLandowners from Bradford, Susquehanna, Wyoming and Lycoming counties (Pennsylvania) attended a rally in Harrisburg, at the Capitol, on Tuesday. They were there to lobby for and support passage of House Bill (HB) 1391, a bill that would guarantee landowners a minimum 12.5% royalty payment regardless of post-production costs. We have extensively covered this issue, which is causing a schism between landowners and drillers (see our most recent article: Guest Post: A Possible Solution for the PA Royalty Issue). Affected landowners are extremely mad, and want their legislators in Harrisburg to pass HB 1391. They were there to make the case. Although they had hoped the measure might come up for a vote on Wednesday, the bill’s sponsor, Garth Everett, said it won’t be considered until October when the House is back in session…
    Read More “PA Landowners Rally in Harrisburg to Support Royalty Bill”

  • Energy Services | Ethane | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Regulation | Statewide PA | Sunoco Logistics

    SEPA Town Votes to Allow Mariner East 2 Across Town Land

    September 29, 2016September 29, 2016
    Yes No tickbox with green YES tick
    Yes No tickbox with green YES tick

    MDN has previously highlighted the fight to build the Mariner East 2 pipeline. Town by town, opponents of the pipeline have tried to stop it with zoning regulations. And town by town, those efforts are failing. A prime example is Middletown, PA, in Delaware County (near Philadelphia). The Middletown Town Council voted earlier this month to put an ordinance on the docket for council members to vote on at the Sept. 26 meeting, an ordinance that if passed, will allow Sunoco LP to move forward with building the pipeline on public land in the town–in one case across a park, and in another close to an elementary school (see PA Town’s Angst Over Mariner East 2 Pipeline Near School, Park). Town council members faced heaving criticism and opposition, but in the end they did the right thing. Monday night the Town Council voted to grant permits to Mariner East 2, provided there are certain safeguards…
    Read More “SEPA Town Votes to Allow Mariner East 2 Across Town Land”

  • Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Westmoreland County

    Mt Pleasant Twp Approves Range Well Near School

    September 29, 2016September 29, 2016

    approvedSomething noteworthy is happening in southwest Pennsylvania. Landowners and pro-gas supporters are turning out at local hearings to support more drilling. Case in point: Range Resources had applied for a permit to build a drill pad near a local elementary school in Mt. Pleasant (Westmoreland County), PA. Moms Clean Air Force and other anti-drillers turned out to oppose the plan. A local town board meeting was packed to capacity. However, a majority of those packing the meeting were pro-gas and wore t-shirts with “Land Owners United” printed on them. Cool! About time our side began to turn up for these meetings to support the industry…
    Read More “Mt Pleasant Twp Approves Range Well Near School”

  • Energy Services | Williams

    Corporate Raider Mini-Me Meister Drops Proxy Fight with Williams

    September 29, 2016September 29, 2016

    Mini-MeIt’s always drama with Williams. Nearly half of the Williams board (6 of 14 board members) were part of a cabal that tried to force the company to sell itself to Energy Transfer Equity–a deal that went horribly wrong. Following the aborted merger, six of Williams’ board members tried to engineer a palace coup to depose current CEO Alan Armstrong. The coup failed and the board members quit in July (see Half of Williams Board, Including 2 Corporate Raiders, Quit). One of the board members who quit was corporate raider Keith Mesiter, founder and managing partner of Corvex Management. Meister is a protege of Carl Ichan, hence we call him Mini-Me. After quitting, he decided he wanted back on the board and began a proxy fight to take control of the company (see Corvex Raider Launches Hostile Takeover Attempt of Williams). Williams appointed several new board members, the most recent two earlier this week (see More Board Shakeups Coming to Williams). Now, all of a sudden, Mini-Me has given up. Meister says he likes the most recent appointments and is using that as an excuse to drop his proxy fight to take over the company. What a loser…
    Read More “Corporate Raider Mini-Me Meister Drops Proxy Fight with Williams”

  • Chesapeake Energy | Energy Companies

    Carl Icahn Toadie Resigns from Chesapeake Energy Board

    September 29, 2016September 29, 2016

    I QuitLast week MDN told you that evil corporate raider Carl Icahn has thrown in the towel with respect to ever making money from Chesapeake Energy. He recently sold off half his Chessy stock (see Corp Raider Carl Icahn Sells Half of His Chesapeake Stock). When Carl had amassed enough stock, he used his position (as evil corporate raiders do) to fire the co-founder and CEO of Chesapeake, Aubrey McClendon (see Breaking: Chesapeake Energy CEO Aubrey McClendon Gets Pink Slip). He did so by installing his own toadies on the board. His direct representative on the board was John Lipinski. A week after Carl sold half his shares in Chesapeake, Lipinski resigned from the board. Good riddance…
    Read More “Carl Icahn Toadie Resigns from Chesapeake Energy Board”

  • Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

    PennEast Pipeline Hands Out More Money to Non-Profits

    September 29, 2016September 29, 2016

    money-bag.jpgEvery now and again pipeline companies hand out grants to local worthy organizations, like fire departments and schools. PennEast Pipeline is one such organization. Christmas has come early to another group of non-profits. PennEast has just handed out $5,000 each to more than a dozen organizations (see the list below). All told, PennEast had distributed more than $400,000 to local organizations through its “Community Connector Grant” program…
    Read More “PennEast Pipeline Hands Out More Money to Non-Profits”

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