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Marcellus Drilling News
  • Industrywide Issues | Litigation | Pipelines | Regulation

    FERC Fights for Constitution Pipeline in Federal Court

    September 16, 2016September 16, 2016

    boxing-glovesTwo days ago MDN told you that the Natural Gas Supply Association (NGSA) had filed a brief in a lawsuit brought by anti-drilling zealots against the much-needed Constitution Pipeline (see NGSA Lobbies Fed Court, DEC to Advance 2 Stalled Pipelines in NY). The Constitution is a $683 million, 124-mile pipeline from Susquehanna County, PA to Schoharie County, NY carrying Marcellus gas. Radical environmental groups sued in federal court to challenge the Federal Energy Regulatory Commission’s (FERC) environmental review of the Constitution. If the wackos can get FERC’s review cast aside, they can slow the project to the point where they can (hopefully for them) kill it. That’s the game plan. The NGSA pushed back against it, and now, so has FERC. On Monday, FERC filed its own brief in federal court, asking the court to throw out the challenges by the zealots…
    Read More “FERC Fights for Constitution Pipeline in Federal Court”

  • Dominion Energy | Energy Services

    Dominion Lockout of Union Workers Ends, New Labor Talks Begin

    September 16, 2016September 16, 2016

    lockoutOne week ago Dominion Transmission locked out over 900 union workers, many of them in West Virginia (and others in Pennsylvania, Ohio and Maryland), preventing them from working (see Dominion Locks Out Labor Union Workers in WV-PA-OH-NY-VA-MD). Dominion has a contract with Local 69 of the Utility Workers Union of America (UWUA) that expired on April 1st and a new contract is nowhere near done being negotiated. Dominion said they didn’t want to run the risk of a strike or work slowdown during the winter months, so they locked out union members, including those that work at compressor stations and along pipelines (see Dominion Locks Out Union Workers at Compressor Stations/Pipelines). The dispute revolves around pension and health care. The union wants to keep the pension plan and health benefits it has now. Dominion wants to end paying full health benefits for new hires after they retire, and also wants to change their pension to a 401(k), shifting the risk of the pension to the individual and not the company. Although a new contract is still nowhere near ready, the lockout is over. Local 69 agreed to not strike or engage in work slowdowns, and in return Dominion will pay workers for their one week vacation/protest. Now they go back to the negotiating table and the new deadline is April 1, 2017–one year after the old contract expired…
    Read More “Dominion Lockout of Union Workers Ends, New Labor Talks Begin”

  • Energy Companies | Vantage Energy

    Vantage Energy Tries New IPO After Striking Out 2 Yrs Ago

    September 16, 2016September 16, 2016

    Vantage Energy logoIn July 2014, Vantage Energy, a Colorado company with major operations in the Marcellus, announced they would launch an initial public offering (IPO) seeking $400. Then in September the number was revised up–the company felt like $601 million would be the goal of their IPO (see Vantage Energy IPO Target Goes from $400M to $601M). In September, Vantage announced they were postponing the IPO, citing “unfavorable equity market conditions” (see Vantage Energy Postpones IPO Citing Unfavorable Market Conditions). Apparently market conditions have improved, because Vantage is back. On Tuesday Vantage filed with the Securities and Exchange Commission (SEC) looking to raise an estimated $600 million in an IPO. If it is successful this time, it will be the first U.S.-based driller to float an IPO in more than two years…
    Read More “Vantage Energy Tries New IPO After Striking Out 2 Yrs Ago”

  • Industrywide Issues | Wastewater

    New Frack Wastewater Recycler Launches in Marcellus

    September 16, 2016September 16, 2016

    gradiant2We have a new entrant into the frack wastewater treatment industry in the Marcellus Shale. Gradiant, which was founded in 2012 by a group of engineers from Massachusetts Institute of Technology (MIT) has rapidly established itself in both the Marcellus and Permian shale plays with innovative technology to treat and recycle produced water from shale wells. Gradiant has been experimenting in the Marcellus and Permian and is now ready to roll out their technology to all comers. In order to roll it out, Gradiant the mother ship is establishing a wholly-owned subsidiary called Gradiant Energy Services. Here’s more about the company and their new technology…
    Read More “New Frack Wastewater Recycler Launches in Marcellus”

  • Hydraulic Fracturing | Industrywide Issues | Research | Utica Shale

    Frackenstein 2: Gassy Utica Critters May Increase Well Output!

    September 16, 2016September 16, 2016

    Frankensteins_monster_Boris_KarloffLast week MDN reported researchers from Ohio State University had discovered a new form of microorganism in fracked Utica Shale wells–something they call “Frackibacter” (we call it Frackenstein). As researchers continue to pour over the research, they’ve hit upon a stunning new revelation. Those little critters may actually INCREASE natural gas output from the well. Now that is exciting news! OSU is on the case, promising to further examine Frackibacter’s origin and “more of its applications”…
    Read More “Frackenstein 2: Gassy Utica Critters May Increase Well Output!”

  • Electrical Generation | Industrywide Issues | Ohio | Statewide OH

    AEP Sells 2 Ohio NatGas-Fired Electric Plants to Blackstone JV

    September 16, 2016September 16, 2016

    aepAmerican Electric Power is selling four electric generating plants to a newly formed joint venture of Blackstone and ArcLight Capital Partners. Three of the plants are natural gas-fired–two of them in Ohio and one in Indiana. One of the plants is coal-fired, located in Ohio. Total sale price for all four: $2.17 billion. While the announcement doesn’t say, we expect at least the gas-fired plants in Ohio, and perhaps the one in Indiana, are fed in part by Utica/Marcellus natural gas. Which is why the story caught our eye. The plants are already up and running–this is simply a transfer of ownership and (we presume) management of the plants. The larger story is just how important these types of plants are in the Marcellus/Utica ecosystem–because they use a huge amount of gas. Here’s the details of the deal…
    Read More “AEP Sells 2 Ohio NatGas-Fired Electric Plants to Blackstone JV”

  • Industrywide Issues | M&A

    ShaleNavigator Internet Mapping Software Service Available for Purchase

    September 16, 2016September 16, 2016

    shalenavigatorMDN previously partnered with the ShaleNavigator online mapping service to produce a popular research report called the Marcellus and Utica Shale Databook. MDN editor Jim Willis did the data research and partnered with ShaleNavigator for the maps displaying that data. ShaleNavigator’s founder and owner has accepted a new job in another industry–a position that occupies most of his time–so he is looking to sell the service. Below are the details…
    Read More “ShaleNavigator Internet Mapping Software Service Available for Purchase”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Fri, Sep 15, 2016

    September 16, 2016September 16, 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: REX sees new signups for East-to-West capacity; ODNR issues 7 new Utica permits; Philly Energy Solutions ends bid to go public; developer tells Maine regulators to look at LNG storage instead of pipelines; Saudis keep buying America’s oil assets; Europe’s biggest natgas producer is running out of gas; and more!
    Read More “Marcellus & Utica Shale Story Links: Fri, Sep 15, 2016”

  • Anti-Drilling/Fossil Fuel | Athens County | Hydraulic Fracturing | Industrywide Issues | Litigation | Meigs County | Ohio | Portage County | Regulation | Statewide OH

    OH Supreme Court Rejects County Frack Ban Ballot Proposals, Again

    September 15, 2016September 16, 2016

    court-gavel.jpgAnti-fossil fuel zealots in Athens, Meigs and Portage counties in Ohio are spitting and sputtering after the Ohio Supreme Court on Tuesday once again shut down their childish frack ban ballot measures–ruling that Secretary of State Jon Husted and the election boards of those counties did not violate the law in tossing out the ballot measures. The radical Pennsylvania-based Community Environmental Legal Defense Fund (CELDF) is particularly torqued off. It’s not the first time the Supremes have slapped them down. Their frack ban ballot measures were also tossed last year by the Supremes (see Ohio Supreme Court Keeps Frack Bans Off Ballot in 3 Counties). It’s not good for future fundraising letters when the CELDF can’t win a case. Below we have a roundup of stories about the decision, including a full copy of the decision itself, handed down on Tuesday…
    Read More “OH Supreme Court Rejects County Frack Ban Ballot Proposals, Again”

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

    700+ Landowner Rally in Bradford County, PA Pushes Royalty Bill

    September 15, 2016September 15, 2016

    civil-warFor some time now MDN has highlighted the ongoing internal division among the ranks between Pennsylvania landowners and drillers over the issue of royalty checks. PA landowners are supporting House Bill (HB) 1391 which would guarantee landowners receive a minimum 12.5% royalty check regardless of post-production costs (see New Bill HB 1391 Will Guarantee PA Landowners 12.5% Royalties). Disagreement over the bill has erupted into a full-blown civil war, with landowners in Bradford County, PA–one of the most heavily drilled counties in the state–leading the charge (see Civil War: Bradford PA Escalates Fight with MSC re Royalty Bill). Last night the troops in Bradford assembled, and their numbers were 700+ strong, a very impressive showing. The rally’s purpose in Bradford was to call attention to HB 1391 and to specifically put pressure on PA legislators, whom attendees said were bowing to pressure (and money) from industry lobbyists–namely the Marcellus Shale Coalition. Here’s what went down at last night’s assembling of the troops…
    Read More “700+ Landowner Rally in Bradford County, PA Pushes Royalty Bill”

  • Electrical Generation | Industrywide Issues

    Suck, Squeeze, Bang, Blow: NJ Elec Plant Expands with Marcellus Gas

    September 15, 2016September 23, 2019

    Construction has already begun with land-clearing on a 6.25-acre plot at the Bayonne Energy Center (BEC) in Bayonne, New Jersey to add two more gas turbines to the natural gas-fired electric generating plant. There are already eight (!) natgas-fired turbines at the plant. The two new turbines will add an extra 132 megawatts of electric generation to the plant, bringing the grand total output to 644 megawatts. The plant is a joint venture owned by Hess Corporation and ArcLight Capital Partners. It is operated by EthosEnergy. Recognize the name? Earlier this week MDN reported that EthosEnergy has been selected by Moxie Energy to run its new electric generating plant near Wilkes-Barre (see Moxie Chooses EthosEnergy to Run NEPA NatGas Electric Plant). The great part of the Bayonne Energy Center story is that Marcellus Shale gas from Pennsylvania feeds the plant. Below are the details on the technology being used in the Bayonne plant, and a little bit about how these kinds of plants work: “Suck, squeeze, bang, blow”…
    Read More “Suck, Squeeze, Bang, Blow: NJ Elec Plant Expands with Marcellus Gas”

  • Energy Services | Industrywide Issues | Ohio | Pipelines | Spectra Energy | Statewide OH

    NEXUS Pipe Aims at Local Utilities, Signs Columbia Gas of Ohio

    September 15, 2016September 15, 2016

    exclusiveSpectra Energy’s NEXUS Pipeline, a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada, continues to build support and a good head of steam. In July the Federal Energy Regulatory Commission (FERC) issued a favorable draft Environmental Impact Statement for the project, a sure sign that FERC intends to approve it (see Spectra’s NEXUS Pipeline Gets Favorable Draft EIS from FERC). Earlier this week MDN reported the Ohio Environmental Protection Agency has granted air emissions permits to NEXUS so they can build five compressor stations (see OH EPA Grants Permits for 5 NEXUS Pipeline Compressor Stations). Even more good news: MDN has exclusively learned that Columbia Gas of Ohio (CGO) has signed a long-term contract to ship 50,000 decatherms per day (50 million cubic feet per day) of natural gas along the NEXUS from two points in Ohio and Pennsylvania to a point in Sandusky County, OH. This new agreement appears to be a shift in strategy by Spectra. How? CGO is a natural gas utility company–delivering gas to end users like residences and businesses. In industry parlance CGO is an LDC, or “local distribution company.” Much of the focus by the media on NEXUS has been that gas flowing through the pipeline will end up exported to Canada. This newest agreement shows that at least some of the gas flowing through NEXUS will stay in the region, distributed by LDCs. Cheap Utica (and Marcellus) gas will benefit Ohio residents and residents in surrounding states. Here’s the details of the CGO/NEXUS agreement…
    Read More “NEXUS Pipe Aims at Local Utilities, Signs Columbia Gas of Ohio”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines | Regulation

    Obama EPA, National Park Service Try to Rain on PennEast Parade

    September 15, 2016September 15, 2016

    rain-on-my-paradeVarious government agencies populated with liberal Democrats, including the Obama Environmental Protection Agency, the Obama National Park Service, the Obama Fish & Wildlife Service, and the New Jersey Environmental Protection Agency, filed negative comments about the PennEast Pipeline with the Federal Energy Regulatory Commission (FERC) on Monday. The last day to file public comments on PennEast was this past Monday, Sept. 12. In what almost seems like a coordinated attack, various agencies all filed their highly inflammatory and negative comments at the eleventh hour. The Obama EPA’s comments were particular egregious, making fantastically wild claims like building PennEast “may” end up causing arsenic in groundwater supplies. Talk about bogus B.S. (Barbara Streisand). The question is, will this unwarranted assault by federal and state agencies cause further delays in the already-delayed PennEast project?…
    Read More “Obama EPA, National Park Service Try to Rain on PennEast Parade”

  • Duke Energy | Energy Services | Industrywide Issues | Ohio | Pipelines | Statewide OH

    Duke Energy Modifies/Scales Back Plan for SW OH Pipeline

    September 15, 2016September 15, 2016

    duke-energyDuke Energy Ohio, an LDC or “local distribution company” serves some half a million customers with natural gas in Ohio. The company has a ~12 mile pipeline to flow gas it needs to move from one point to another in Hamilton County, the southwest corner of the state. The Duke pipeline has been around and in service since the 1950s. Duke needs to replace that pipe or some of the half million Duke customers won’t get natural gas any more. Because anything to do with “fracking” or “pipelines” has been so thoroughly bastardized by the media and anti-drilling whack jobs, there was, of course, opposition to Duke’s plan. So Duke “listened” and has scaled back their plans. Instead of building a 30-inch gas pipeline running at 600 psi (pounds per square inch), the revised plan calls for a 20-inch pipeline running at 400 psi. Duke has proposed two potential routes (see the map below). Here’s the lowdown on Duke’s scaled-back, tiny pipeline project in Hamilton County called the Central Corridor Pipeline Extension Project…
    Read More “Duke Energy Modifies/Scales Back Plan for SW OH Pipeline”

  • Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Regulation

    Youngstown OH Ready to Defeat Frack Ban Proposal for 6th Time

    September 15, 2016September 15, 2016

    Groundhog DayThe longer we write MDN, the easier it gets–because the stories just keep repeating themselves. That’s how we felt when we spotted a story about the adults in Youngstown, OH pushing back against the temper tantrums of anti-fracking, childish nutters in the city who have, now for the sixth time, put a frack ban measure on the ballot for the November election. Five previous times the same group of rabid anti-fossil fuel haters have done this–and five times they have gone down to defeat (see MDN’s previous stories covering Youngstown ballot initiatives here). The antis waste everyone’s time and money by getting just enough fellow wackos to sign a petition to get the measure on the ballot each November. The adults in Youngstown must stay vigilant, so they held a rally Tuesday morning to announce opposition to the ballot measure. The mayor of Youngstown was there. So too were a number of union workers, Chamber of Commerce members, local businesses and supporters of the oil and gas industry in the Buckeye State. They were all there to recommend a “NO” vote on this asinine ballot measure, once again…
    Read More “Youngstown OH Ready to Defeat Frack Ban Proposal for 6th Time”

  • Dominion Energy | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

    OH Lets Dominion Boost Recoverable Spending on Pipe Replacement

    September 15, 2016September 15, 2016

    dominionDominion launched a $4 billion, 25-year Pipeline Infrastructure Replacement (PIR) program in mid-2008. The program involves replacing over 5,500 miles of Dominion’s 22,000-mile pipeline system. Most of the pipeline to be replaced was installed in the first half of the 1900s. Some of the pipeline (much?) is being done in Ohio. The pipelines Dominion wants to replace in Ohio are regulated by the Public Utilities Commission of Ohio (PUCO). If Dominion wants to do anything with or for the pipelines in Ohio, they first need PUCO permission. Dominion has sought, and now received, PUCO permission to expand the program in Ohio. Dominion currently spends $160 million per year on the program in Ohio. PUCO gave them permission to up that amount to $170 million next year and $200 in 2018. Why is that important? Because Dominion gets to “recover” the costs (i.e. charge the costs) to utility customers. Dominion customers in Ohio can expect to see a rate increase…
    Read More “OH Lets Dominion Boost Recoverable Spending on Pipe Replacement”

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