Marcellus Drilling News

Electrical Generation | Industrywide Issues | Litigation | Pipelines

MA Supreme Court Ruling Endangers New England Gas Pipelines
August 18, 2016August 18, 2016

In September 2015, MDN told you that the Massachusetts Dept. of Public Utilities (DPU) approved long-term contracts for three utilities–Berkshire Gas, National Grid and Columbia Gas–to buy natural gas supplies from Kinder Morgan’s Northeast Energy Direct (NED) pipeline, IF it gets built (see Mass. Approves Plan for Utilities to Buy Gas from New Pipeline). At the time we warned you that the global warming-mongers were not happy and threatening to sue the state. They did. The left-leaning Conservation Law Foundation (CLF) filed an appeal of the DPU’s decision with the Massachusetts Supreme Judicial Court in hopes that they can stop the project from being built if they can dry up demand from utility companies–i.e., prevent the utilities from buying NED gas (see Anti Group Sues to Stop Mass. Utilities from Buying Natural Gas). In the meantime, Kinder Morgan abandoned the NED project (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). However, the lawsuit lives on. There are more pipelines that may be affected by such a decision, including Spectra Energy’s Access Northeast pipeline project–still very much alive. The worst has now happened. The MA Supreme Court has just ruled that utility companies, which are heavily regulated and the prices they can charge controlled, cannot pass along the cost of a pipeline to electric ratepayers…
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Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Regulation | Statewide PA

More Bleating from Radical Anti Groups re FERC PennEast Hearings
August 18, 2016August 18, 2016

We’re sorry to beat a dead horse (or goat, in this case) to death, but we can’t help it. We have another shining example of far-left environmental radicals who are bleating about the Federal Energy Regulatory Commission’s (FERC) change-up in the way they accepted public comments on the PennEast Pipeline project. We first reported the antis are up-in-arms two days ago (see FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating). Yesterday we shared the spitting and sputtering done by THE Delaware Riverkeeper herself, Maya van Rossum (see THE Delaware Riverkeeper Mad – Can’t Bleat at FERC Hearings). Today it’s the radicals at the New Jersey Conservation Foundation and Stony Brook-Millstone Watershed Association. Maaaaaaahhhh…
Read More “More Bleating from Radical Anti Groups re FERC PennEast Hearings”
Industrywide Issues | Research | Statewide WV | West Virginia

WVU Prof Gets $110K Grant to Research ‘Methane Aromatization’
August 18, 2016August 18, 2016

A West Virginia University engineering prof has just been awarded $110,000 to study methane aromatization. What’s that? It’s the process of turning methane, or natural gas, into “higher value products” like benzene and hydrogen. It’s not as easy as it may sound. If the good prof is successful, it may open up new markets in the northeast for our overabundant natural gas supplies. Here’s the lowdown…
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Economic Impact | Industrywide Issues | Jobs | Kanawha County | Processing Plants | Statewide WV | West Virginia

US Methanol Confirms MDN Rumor – 2 (or More) Plants Coming to WV
August 17, 2016August 17, 2016

Last week MDN was the first to share the news that the California-based US Methanol is building at least two, rumored up to five, methanol plants in the Mountain State (see Rumor: US Methanol Building 5 Methanol Plants in WV). MDN shared a rumor (based on a source) that until we disclosed it, was not public knowledge: The first methanol plant they will build will be in Institute, WV, and the second in Belle, WV–both in the Charleston region. We now have confirmation of that rumor via several news accounts. We also told you that both plants were being disassembled in other countries and brought here. We now know which countries are losing the plants that will be reassembled in Institute and Belle…
Read More “US Methanol Confirms MDN Rumor – 2 (or More) Plants Coming to WV”
Brooke County | Electrical Generation | Harrison County | Industrywide Issues | Marshall County | West Virginia

Progress for 3 WV NatGas Electric Plants; 1 Breaks Ground in 2016
August 17, 2016August 17, 2016

In April 2014 MDN brought you the exciting news that a father and son team, Andrew and Matthew Dorn (based in Buffalo, NY) would build a 549-megawatt electric generating plant, powered by Marcellus Shale, in Moundsville (Marshall County), WV (see Marcellus-Powered Electric Plant Coming to Marshall County, WV). The Dorns, who later named their company Energy Solutions Consortium, announced in March 2015 plans to build more plants in WV (see Big News: 3 More Marcellus-Powered Electric Plants Coming to WV). We have an update on the progress for all of the plants the Dorns want to build in the Mountain State–with a massive $2 billion investment. The short version: all projects are progressing nicely, and the Marshall County project will break ground this year…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA

THE Delaware Riverkeeper Mad – Can’t Bleat at FERC Hearings
August 17, 2016August 17, 2016

As we reported yesterday, the Federal Energy Regulatory Commission (FERC) has found a way to eliminate the histrionics practiced by anti-fossil fuel nutjobs who want to oppose the PennEast Pipeline at FERC hearings (see FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating). FERC is denying antis an audience in front of which to engage in the circus-like freak show they love to perform. And that has THE Delaware Riverkeeper–Maya van Rossum–hopping mad. She calls the new procedure of delivering comments in a private room before a single FERC rep and stenographer “a faux public hearing.” You see, antis needs an audience, otherwise their pathetic lives have no meaning. Without hooting and hollering and making outrageously false claims (i.e. lies), where’s the fun? Without an audience, Maya’s minions will just stay home instead. Oh oh. That’s not good! Here’s how Riverkeeper stenographers at the Philly Inquirer are reporting it…
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Energy Companies | Ultra Petroleum

Ultra Petroleum Trying to Force Debtholders to Deal re Bankruptcy
August 17, 2016August 17, 2016

Ultra Petroleum, based in Houston, TX, is an independent exploration and production (E&P) company mainly focused on drilling in the Green River Basin of Wyoming. Ultra also drills for oil in the Uinta Basin/Three Rivers area in Utah. In addition, Ultra maintains a position in the Pennsylvania Marcellus shale with leases on 184,000 gross (91,000 net) acres–no small amount. They aren’t currently drilling on their Marcellus acreage, but if prices change, they likely would. That is, if they make it through bankruptcy. At the end of April Ultra filed for Chapter 11 bankruptcy (see Ultra Petroleum (with 184K Marcellus Acres) Files for Bankruptcy). Shareholders tried to get an official equity committee approved to protect their interest (see Update on Ultra Petroleum Bankruptcy). That effort failed–the trustee denied the motion. So equity holders (stockholders), with the aid of Ultra’s management (who happen to be stockholders themselves) have adopted a new strategy: wait them out. Management has asked for an extension to file their bankruptcy plan, which would put a plan filing date out to next spring. It seems that management is using time against debtholders as a tactic to force them to the table to deal…
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Energy Services | Seventy Seven Energy

Seventy Seven Energy 2Q16: Shed $1B Debt, Lost $84.5M
August 17, 2016August 17, 2016

Earlier this month MDN reported that oilfield services company Seventy Seven Energy (SSE), the former Chesapeake Oilfield Operating company, had popped out of bankruptcy in record time–just two months after declaring bankruptcy (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). The bankruptcy reduced more than $1 billion worth of debt by waving a magic wand and turning debt into equity (shares of stock)–hosing existing stockholders. We also reported SSE was cleared to borrow another $100 million (go figure). Last week SSE released their second quarter 2016 update. It shows the company lost $84.5 million in 2Q16, compared to losing $74.7 million in 2Q15. Here’s the SSE 2Q16 update…
Read More “Seventy Seven Energy 2Q16: Shed $1B Debt, Lost $84.5M”
Energy Companies | PDC Energy

PDC Energy 2Q16: Utica Program Active Again, Neff Well Online
August 17, 2016August 17, 2016

PDC Energy, a driller in the Wattenberg Field in Colorado and the Utica in Ohio, paused their Utica drilling program in 2015 (see PDC Energy Pushes Pause Button on OH Utica Drilling for 2015). In December the company announced they would restart Utica drilling in 2016 with plans to drill five wells (see PDC Energy to Restart OH Drilling in 2016, Drilling 5 Utica Wells). Last week PDC released their second quarter 2016 update. There are a few mentions of the Utica in the update. It appears the Utica program is once again up and running. In fact, one of the Utica wells they’ve drilled, the PDC “Neff” well, has come online earlier than expected and began producing in 2Q16…
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Industrywide Issues | Pennsylvania | Regulation | Statewide PA

CSSD Makes Case for “Beyond the Minimum” Approach to Drilling
August 17, 2016August 17, 2016

The Center for Sustainable Shale Development (CSSD) has fought stiff headwinds from the beginning. The organization was founded by a group of Pennsylvania shale industry people and environmentalists reaching across the isle to forge strict new standards both sides can live with. Environmental leftists, like Mamma Teresa Heinz Kerry and her Heniz Endowments, pulled support and have actively worked against the CSSD (see She Speaks! Teresa Heinz Kerry Talks re Endowments Firings, CSSD). Other so-called environmental groups like the William Penn Foundation also bailed. But new supporters stepped into the breach to step into their shoes (see CSSD Thrown a Lifeline from Richard King Mellon Foundation). On the industry side, only four companies have applied for and received CSSD certification to date: Chevron, Shell, CONSOL Energy and EQT. MDN has met and chatted with CSSD’s executive director Susan LeGross. She is an impressive leader for the organization. Susan has just penned an article appearing in the Pittsburgh Tribune-Review making the case for the strict standards advocated by her organization. She takes the opportunity of renewed talk of shale drilling, spurred by Shell’s ethane cracker announcement, to make the case that it’s time to go “beyond the minimum” with shale drilling…
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Industrywide Issues | Pipelines

Pipelines for America – New Campaign Counters Pipeline Lies
August 17, 2016August 17, 2016

With the low low price of natural gas and oil currently in place–and not letting up any time soon–the frenzy of shale drilling has slowed. So fossil fuel haters have turned their focus from fracking and stopping it, to pipelines and stopping them. Antis understand that pipelines are critical to getting natural gas to market–and without pipelines drilling will stop. So money and time and effort is being poured into the effort to stop pipeline projects. Enough! The Consumer Energy Alliance (CEA), a national consumer advocacy group, has just launched a national campaign called “Pipelines for America” to counter the lies and smears coming from fossil fuel haters. The campaign is aimed at educating American consumers about the vital importance of our pipeline infrastructure–and that more pipelines are needed to keep energy prices low AND to protect the environment. Here’s the CEA announcement of this important new initiative…
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Electrical Generation | Industrywide Issues | Research

Black & Veatch Electric Industry Report – The Rise of NatGas
August 17, 2016August 17, 2016

Black & Veatch, a ginormous engineering, consulting and construction company, recently released their “2016 Strategic Directions: Electric Industry Report” (full copy below). The report captures Black & Veatch’s global engineering and thought leadership to examine how distributed electric generation, the low price of natural gas and modern customer information systems represent growth opportunities for the electric industry–even as security concerns are on the rise and legacy power generation sources (i.e. coal powered plants) are fading away, being replaced by new natgas technology. One trend MDN editor Jim Willis did not foresee when he started writing about the Marcellus industry back in January 2009 was the rise of natgas-fired electric generating plants–and the critically important role they would play in the Marcellus/Utica region. This B&V report provides useful insights into how natgas and electric generation are increasing “joined at the hip”…
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Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Williams

Sign Letter to PA Gov. Wolf re Support Atlantic Sunrise Pipeline
August 17, 2016August 17, 2016

Pennsylvania residents: It’s time to (once again) show your support for the Atlantic Sunrise Pipeline project, a $3 billion, 198-mile project running through 10 Pennsylvania counties to connect Marcellus Shale natural gas from PA with the Williams’ Transco pipeline in southern Lancaster County. It is a much-needed pipeline to move more Marcellus gas south, to new markets. In the past MDN has asked you to sign letters going to the Federal Energy Regulatory Commission (FERC) and to the PA Dept. of Environmental Protection (DEP). And you, our dear readers, have been the most responsive audience to get behind the effort to support this project. Thank you! We’re coming to you again with a new request. Please electronically sign a letter that will go to PA Gov. Tom Wolf, requesting his support for the project. Wolf’s active support of the project will go a long way toward ensuring it gets built. All you need to do is fill out your name and a few details and click the “Sign” button–it literally takes less than 60 seconds. Please take a moment and do it right now by clicking this button:
Crestwood Midstream | Energy Services | New York | Schuyler County

Rally in Support of Finger Lakes Propane Storage Facility
August 17, 2016August 17, 2016

Click for larger version

Late breaking news: Tomorrow (Thursday), Aug. 18 there will be a rally to support Crestwood’s Finger Lakes LPG Storage Facility planned for the shore of Seneca Lake. The rally will be located at the entrance of the facility, at 3768 NYS Route 14 North, Watkins Glen, NY at 4:30 pm. The New York State Dept. of Environmental Conservation continues to obstruct this vitally important piece of infrastructure. The facility planned would store LPG (liquefied petroleum gas, or propane) in a depleted underground salt cavern. Anti fossil fuel wackos have been protesting continuously for the past several years. Many of them have been arrested for illegally blocking the entrance to the facility. Here’s your chance to show up and show your support for the facility, and send a loud and clear message to Andrew Cuomo that enough is enough. Here’s the details for the rally…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Aug 17, 2016
August 17, 2016August 17, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Utica rigs drop by 2; PA AG Kane resigns; DEP holds Mariner East 2 hearing in Harrisburg; Dakota pipeline reveals split in Democrat Party; big oil tries to frack again; DOE Sec. Moniz loves fracking – good for the environment; LNG exports impacting US natgas supplies; and more!
Read More “Marcellus & Utica Shale Story Links: Wed, Aug 17, 2016”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lehigh County | Northampton County | PennEast Pipeline | Pennsylvania | Pipelines | Regulation

FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating
August 16, 2016August 16, 2016

We’ve sat through our fair share of public hearings and open houses for pipelines–from Federal Energy Regulatory Commission (FERC) hearings to state agency hearings to open houses sponsored by midstream companies (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The script is always the same. Anti-fossil fuel freaks show up and perform before the cameras and microphones. That’s what they are there to do–engage in a circus act. When they are denied such an opportunity, they complain (see Williams’ Smart Open House in Lebanon County Confounds Antis). FERC hearings are always the same–show up and sign up to speak, with 3 or 4-minute allotments for each speaker. And speakers are taken in the order in which they signed in. Those in the audience who are for or against typically applaud or issue boos and insults. We have often said FERC personnel should get hazard pay for sitting through 4-hour marathons of this nonsense. FERC has wised up. They held a public hearing last night in the Bethlehem, PA area for the proposed PennEast Pipeline project. Instead of a public forum, FERC set two private rooms with a stenographer in each. FERC recorded comments two-at-a-time, in private. And they saved themselves all of the theatrics by anti-drilling trolls. And of course, that didn’t sit well with the antis. Most of the antis who spoke were reading from cue cards prepared for them by THE Delaware Riverkeeper, Maya van Rossum. The antis are so dumb they can’t even form their own thoughts about why they are against the project! Too funny…
Read More “FERC Alters PennEast Hearing Process to Reduce Antis’ Bleating”