Marcellus Drilling News

Electrical Generation | Industrywide Issues | Pennsylvania | Westmoreland County

Groundbreaking for Tenaska Marcellus-Fired Electric Plant in SWPA
August 26, 2016September 14, 2016

Tenaska Westmoreland Generating Station (concept)

It’s been eight long years since energy giant Tenaska (headquartered in Omaha, NE) first proposed building a natural gas-fueled power plant in South Huntingdon (Westmoreland County), PA. In April MDN reported Tenaska announced that the Tenaska Westmoreland Generating Station, a 925-megawatt (MW) natural gas-fueled power plant project near Pittsburgh, had secured $780 million in funding (see Construction Begins on $780M SWPA NatGas-Fired Power Plant). Our headline at the time of “Construction Begins…” was a bit premature as the first shovelful of dirt didn’t happen until earlier this week. On Wednesday, Tenaska held a groundbreaking ceremony at the site. Jerry Crouse, CEO of Tenaska, was on hand for the shindig. The good news is that this large electric generating plant will be powered by Marcellus Shale gas, another important new market for PA’s homegrown natural gas…
Read More “Groundbreaking for Tenaska Marcellus-Fired Electric Plant in SWPA”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Kinder Morgan | NGLs | Ohio | Pipelines | Research | Statewide OH

Kent State Study: UTOPIA Pipeline to Yield $237M for Ohio Economy
August 26, 2016August 26, 2016

Click for larger version

As MDN reported yesterday, Kent State University researchers have just issued a report evaluating the economic impact of the proposed Kinder Morgan UTOPIA (Utica To Ontario Pipeline Access) project on the State of Ohio. UTOPIA is a 12-inch ethane pipeline that will run 240 miles across Ohio, connecting with another pipeline that will shuttle Utica/Marcellus ethane all the way to a cracker plant in Sarnia, Ontario. The Kent State study estimates this tiny pipeline project will contribute a whopping $237.3 million to Ohio’s economy, creating 2,132 direct and indirect jobs in Ohio and generating $4.9 million in yearly tax revenues. Below is a press announcement from Kent State with a good overview of the study, followed by a full copy of the study, which is titled: “Economic Impact of Kinder Morgan Utopia Pipeline Project”…
Read More “Kent State Study: UTOPIA Pipeline to Yield $237M for Ohio Economy”
Anti-Drilling/Fossil Fuel | Energy Companies | Indiana County | Industrywide Issues | Litigation | Pennsylvania | Pennsylvania General Energy | Wastewater

Federal Court Denies CELDF’s Re-Hearing Request in Grant Twp Case
August 26, 2016August 26, 2016

We believe this bit of news is exclusive to MDN–we’ve not seen it anywhere else, yet. In early August MDN reported that the novel legal argument offered by the radical leftist PA-based group Community Environmental Legal Defense Fund (CELDF) in Grant Township (Indiana County), PA claiming to represent a local ecosystem had failed (see CELDF Loses Case to Represent Ecosystem – Turtles Disappointed). The CELDF tried to claim the Little Mahoning Watershed, an ecosystem, is a “person” under the law–an asinine notion. The CELDF had hoodwinked local anti-drillers in Grant who are opposed to a legally-permitted injection well, attempting to block the well from getting built and operated by Pennsylvania General Energy (PGE). Claiming they speak for the ecosystem was the legal shenanigan the CELDF tried to pull–and it didn’t work. The federal Third Circuit Court of Appeals rejected their arguments, clearing the way for PGE to build the injection well and continue with a $1 million lawsuit against Grant for causing economic harm to the company. Here is the new and exclusive news: The CELDF, masquerading as the Little Mahoning Watershed (the “ecosystem”), along with CELDF’s sibling organization called East Run Hellbenders Society, immediately petitioned the full Third Circuit (all of the justices) asking for a rehearing–something called a Sur Petition for Rehearing. The CELDF wanted another bite at the apple–a chance to prove to other justices that the Little Mahoning Watershed is a “person” under the law and should be represented by the crazies at the CELDF. The justices of the Third Circuit unanimously and swiftly rejected the petition for rehearing. It’s the end of the road for the CELDF and Grant Township in this case, which means the PGE injection well will now get built, and Grant Township taxpayers will have to pony up $1 million (if PGE wins their lawsuit, as we expect they will)…
Read More “Federal Court Denies CELDF’s Re-Hearing Request in Grant Twp Case”
Energy Services | Enterprise Products Partners | Industrywide Issues | M&A | Williams

Corvex Raider Launches Hostile Takeover Attempt of Williams
August 26, 2016August 26, 2016

Corporate raider and Carl Icahn protege Keith “Mini-Me” Meister, Managing Partner of Corvex Management, has launched a full-out assault and takeover attempt of midstream company Williams. Yesterday MDN reported that Meister has floated a slate of 10 of his own people–including himself–as candidates for the board of directors for a scheduled vote during the annual meeting later this year (see Corp Raider Who Quit Williams Board Wants Now Wants Back On). Mini-Me tried this before and it failed (see Half of Williams Board, Including 2 Corporate Raiders, Quit). This time Mini-Me is trying to fight his proxy war via the court of public opinion. Writing on the Seeking Alpha investors website, Mini-Me Meister offers lame excuses for why he “must” attempt a takeover of Williams…
Read More “Corvex Raider Launches Hostile Takeover Attempt of Williams”
Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

Transco’s Northeast Expansion Project Advances, FERC Hearings in Sept
August 26, 2016March 28, 2017

Transco Northeast Supply Enhanacement Project map – click for larger version

In May Williams’ Transcontinental Gas Pipe Line Company (Transco) pre-filed with the Federal Energy Regulatory Commission (FERC) for a project called the Northeast Supply Enhancement project (see Williams Pre-Files with FERC to Expand Transco Pipeline in PA, NY). The new project is meant to increase pipeline capacity and flows heading into northeastern markets. In particular, Transco wants to provide more natural gas to utility giant National Grid beginning with the 2019-2020 heating season. National Grid operates in New York City, Rhode Island and Massachusetts. Also in May, Williams ran an open season to lock up commitments for the Northeast Supply Enhancement project (see Williams Announces Open Season for Northeast Supply Enhancement). The open season worked. National Grid committed to all 400,000 dekatherms of extra gas the project will provide. Currently FERC has its ears on–accepting comments about the project, both in writing and (in September) via four public hearings…
Read More “Transco’s Northeast Expansion Project Advances, FERC Hearings in Sept”
Allegheny County | Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Shell | Statewide PA | Washington County

Washington County, PA Panel Talks Marcellus, Cracker & the Future
August 26, 2016August 26, 2016

A banker, a real estate developer and a natural gas drilling company rep walk into a bar… No wait! This isn’t a joke! A banker, a real estate developer and a natgas drilling rep were panelists at seminar held yesterday, organized by the Pittsburgh Business Times. Even though there has been a major slowdown in Marcellus/Utica drilling, all three panelists were upbeat and optimistic–in no small part because of the coming Shell ethane cracker in nearby Beaver County. One comment made about the Shell cracker: “We’re not just building a facility; we’re building an industry.” That’s just how major the Shell project will be in the greater Pittsburgh area. Another comment: “The Marcellus Shale is not in the tank…It has slowed down, which is typical of industries that are sensitive to price cycles, [but] it’s consistent, affordable and is stable.” More interesting tidbits from the PBT soiree…
Read More “Washington County, PA Panel Talks Marcellus, Cracker & the Future”
Industrywide Issues | Research

Platts: Marcellus/Utica Production Nears All-Time High in August
August 26, 2016April 20, 2022

Platts Analytics is estimating that natural gas output in the combined Marcellus/Utica will average 22.63 billion cubic feet per day (Bcf/d) during August. If that bears out, it will an increase of 2% from July and the second highest monthly output EVER for the Marcellus/Utica, second only to February’s all-time high of 22.78 Bcf/d. That is astonishing! The numbers are catching analysts by surprise, who did not expect an increase in northeast gas volumes, but instead a decrease. Even the venerable U.S. Energy Information Administration (EIA) predicted August numbers for the Marcellus would go down by 26 million cubic feet per day (MMcf/d), but Utica would increase by 5 MMcf/d, for a total net decrease of 21 MMcf/d (see EIA July DPR: Utica Only Play with Increased NatGas Production). Not so according to Platts Analytics. Why the increase in August, of all times?…
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Uncategorized

Johns Hopkins Junk Science: Fracking Gives You Headaches
August 26, 2016August 26, 2016

In April 2015 a “study” from Johns Hopkins University claimed fracking has led to high levels of radon in nearby homes in PA (see Johns Hopkins Says PA Fracking Causing High Radon in Nearby Homes). That study was a sham and was debunked. In October 2015 a “study” from Johns Hopkins University claimed fracking leads to premature births in PA (see New Junk Science Claims PA Fracking Leads to Premature Births). Again, it was debunked as a sham. In July of this year the same Johns Hopkins group released a “study” claiming fracking makes asthma worse (see Sham “Study” from Johns Hopkins Says Fracking Makes Athsma Worse). Also shown to be a fraud. See a pattern? When we saw yet another junk science “study” coming from the same group of virulent anti-drillers, using the once-great name of Johns Hopkins to cover for anti-drilling shillery, our first thought was to ignore it since this new “study” is more of the same agenda-driven, false “science” B.S. (Barbara Streisand). But report on it we must. The latest anti-fracking “study” coming from Johns Hopkins claims that fracking leads to headaches, fatigue and sinus problems. The one, big, glaring problem with this study is that almost all of the subjects whose doctor records were used live OUTSIDE of drilling areas! That’s what passes for science and academic rigor at Johns Hopkins. It’s all political science, absent any real science…
Read More “Johns Hopkins Junk Science: Fracking Gives You Headaches”
Uncategorized

Siluria Appoints Former Shell Exec Robert Trout as CEO
August 26, 2016August 26, 2016

Robert Trout

A new company we first reported on in May is Siluria Technologies (see New Tech Converts NatGas into Ethylene, Bypassing Cracker Plants). We’re excited about Siluria because of their intriguing technology that converts natural gas directly into useful petrochemicals, bypassing in-between steps like using ethane crackers. Very cool stuff. In early May Siluria picked up an Italian partner (see Siluria Gets Partner to Convert Methane Directly into Petrochems). In June the company picked up a French partner (see Siluria’s Disruptive Technology Gets French Partner – Air Liquide). The company has momentum. Now comes word that Siluria has a new CEO, a high-ranking Shell executive who spent his entire career at Shell. This is very good news indeed…
Read More “Siluria Appoints Former Shell Exec Robert Trout as CEO”
Energy Companies | Stone Energy

Stone Energy in Talks to Sell 90K Acres of Marcellus Leases/Wells
August 25, 2016August 25, 2016

Stone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale with 90,000 acres of leases. Last year Stone quit drilling in the northeast and actually shut-in part of their production due to low prices (see Stone Energy 3Q15: Shut Down 110 Mmcfe/d of Marcellus Production). In June Stone cut a new midstream gathering agreement with Williams to return some of their shut-in Marcellus wells to full production (see Stone Energy Opens Marcellus Spigots Again; New Midstream Deal). Although threatened with de-listing by the New York Stock Exchange and under threat of bankruptcy, Stone has (so far) managed to avoid both fates. Earlier this month MDN reported that although the company still faces stormy weather, they had committed to ramping up their Marcellus program again (see Stone Energy Ramps Up Marcellus Again in 2Q16, Loses $196M). Perhaps that was just marketing? Or perhaps Stone has been backed into a corner? Word has leaked, via a Securities and Exchange Commission (SEC) 8-K filing (full copy below), that Stone has “commenced negotiations to sell its Appalachian assets to a third party” as part of restructuring talks. That is, Stone is trying to stay out of bankruptcy, or if they have to declare bankruptcy, get a deal in place first–and as part of that process, they’ve disclosed they are actively trying to sell their 90,000 acres of leases and existing drilled wells in the Marcellus to help pay down debt…
Read More “Stone Energy in Talks to Sell 90K Acres of Marcellus Leases/Wells”
Energy Services | Industrywide Issues | M&A | Williams

Corp Raider Who Quit Williams Board Wants Now Wants Back On
August 25, 2016August 26, 2016

Keith “Mini-Me” Meister, a protege of Carl Icahn and disgusting corporate raider bent on ruining Williams, just can’t stay away. He owns a lot of Williams stock (something like 4% of all Williams stock), and when Mini-Me Meister couldn’t get his own way in forcing Williams to merge with Energy Transfer Equity (see Dead as a Doornail: ETE Terminates Merger with Williams), and when Mini-Me and five other Williams board members couldn’t subsequently force Williams CEO Alan Armstrong to resign, he and the other others quit in a huff (see Half of Williams Board, Including 2 Corporate Raiders, Quit ). We told you earlier this week that Mini-Me Meister is trying to incite a shareholder revolt (see Corporate Raiders Try to Incite Shareholder Revolt at Williams). Now comes word that Meister has put his own name and nine others (from his corporate raider company, Corvex) forward to stand for election to the board of directors. It’s called a proxy fight to win control of the company. It will be expensive to combat, but Williams must combat it if they want to keep an independent company and not layoff thousands of people…
Read More “Corp Raider Who Quit Williams Board Wants Now Wants Back On”
Crime | Energy Services | Industrywide Issues | PennEast Pipeline | Pipelines

NJ Anti Indicted for “Terroristic Threats” Againt PennEast Workers
August 25, 2016August 25, 2016

PennEast in NJ

In April MDN told you about the case of an anti-driller who crossed the line into terrorism (see Anti Arrested for Terrorist Threats, Waves Gun at PennEast Workers). Three surveyors working on the PennEast Pipeline in Holland Township (Hunterdon Township), New Jersey were approached by a man with a rifle. The man asked them if they were there working on the PennEast. When the 3-man crew responded “yes,” the man waved the gun in the air, shouting at them that he would stop the pipeline. It was a clearly a menancing threat to the men who were doing nothing more than a survey. Holland Township Police later arrested Lester Kinney Jr., charging him with “making terroristic threats and possession of a weapon for an unlawful purpose.” Although arrested for his crimes, you need an indictment (from a grand jury) in order to prosecute such a crime. The wheels of justice grind sloooooooooowly. We finally have some good news. A grand jury has indeed indicted Mr. Kinney for his criminal act. He will now either plead guilty, or go to trial…
Read More “NJ Anti Indicted for “Terroristic Threats” Againt PennEast Workers”
CNX Resources | CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Greene County (PA) | Indiana County | Industrywide Issues | Jefferson County (PA) | Pennsylvania | Regulation | Washington County

CONSOL Fined $184K for Sloppy Pipeline Construction
August 25, 2016August 25, 2016

The Pennsylvania Department of Environmental Protection (DEP) has fined two CONSOL Energy subsidiaries, CNX Gas (the drilling division) and CONE Midstream (co-owned by CONSOL and Noble Energy) for coloring outside the lines when they built some gathering pipelines in four western Pennsylvania counties. CNX was fined $139,000 and CONE was fined $45,000 for veering off the path officially filed with the DEP. According to DEP spokesman John Poister, the numskulls didn’t pay attention and were sloppy (our words, his sentiment). Here’s the official announcement from the DEP, along with comments from Poister…
Read More “CONSOL Fined $184K for Sloppy Pipeline Construction”
Energy Services | Industrywide Issues | Litigation | Pipelines | Regulation | Spectra Energy

Spectra Spits in MA High Court’s Eye – We’ll Still Build Pipeline
August 25, 2016August 25, 2016

Last week MDN reported on the decision by the Massachusetts Supreme Court to deny utility companies operating in the state to pass along potential costs of a new natural gas pipeline to electric rate payers–the people who would most benefit from such a pipeline (see MA Supreme Court Ruling Endangers New England Gas Pipelines). Several utilities had entered into long-term agreements with Spectra Energy’s proposed Access Northeast pipeline on the basis of recovering their costs by passing along pipeline costs to ratepayers. We previously took great pains to explain this complex issue, of government-regulated companies and how they make money. We speculated last week that this decision may indeed imperil the building of Spectra’s Access Northeast pipeline. Good news! Spectra is metaphorically spitting in the eye of the MA Supremes. The company says it will move forward with building the pipeline anyway, regardless of the Supreme Court’s decision…
Read More “Spectra Spits in MA High Court’s Eye – We’ll Still Build Pipeline”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Lawrence County | Pennsylvania | Processing Plants | Shell | Washington County

PA Econ Dev Secretary Hits Road to Promote Shell Cracker
August 25, 2016August 25, 2016

We suppose we should have known, but we didn’t. We didn’t know that Pennsylvania has a Department of Community and Economic Development (DCED). In fact, the DCED has its own cabinet-level Secretary–Dennis Davin–appointed by Democrat Gov. Tom Wolf in January 2015 when Wolf assumed office. Davin has stayed largely under the radar–until now. Wolf has sent Davin out on a road show to promote the forthcoming Shell ethane cracker plant. Davin is conducting roundtable discussions in various communities around PA to generate ideas on how local businesses can benefit from the cracker. So far he’s visited Beaver County (where the cracker will be built), Lawrence County and Washington County. The DCED is flooding the airways with press releases about Davin’s cracker road show…
Read More “PA Econ Dev Secretary Hits Road to Promote Shell Cracker”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Kinder Morgan | Ohio | Pipelines | Statewide OH

Half of UTOPIA Pipeline Jobs in OH May Go to “Foreigners”
August 25, 2016August 25, 2016

UTOPIA Pipeline map – click for larger version

Now that Ohio Gov. John Kasich’s grandiose delusion of becoming the next president of the U.S. has been shattered and he’s had time to lick his wounds, it’s time to drag old “foreigner hunter” out for a new round of tracking down out-of-state workers. We have a mission for him: UTOPIA. As in Kinder Morgan’s UTOPIA ethane pipeline, planned to run 240 miles across Ohio. As pipelines go, it’s pretty small at only 12 inches in diameter. But ethane (a natural gas liquid) doesn’t need a huge pipeline to cart it across the Buckeye State. UTOPIA (named for Utica To Ontario Pipeline Access) will cross the state and connect to another pipeline that will carry Utica/Marcellus ethane to Michigan and on from there to Canada to feed the NOVA ethane cracker in Sarnia (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). Kinder has just released a new study conducted by Kent State University researchers that outlines the huge economic benefits for Ohio in building UTOPIA. One of the interesting factoids: The pipeline will create over 2,000 temporary jobs–900 of them in construction. The report estimates that half of those construction jobs will go to out-of-state workers. Since Gov. Kasich is a jingoist with a problem employing out-of-state workers from exotic places like Texas and Louisiana (he calls them “foreigners,” see OH Gov. Kasich Continues Trash Talk Out-of-State Workers), we expect he’ll be prowling around to see if he can “fix” the situation…
Read More “Half of UTOPIA Pipeline Jobs in OH May Go to “Foreigners””