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Marcellus Drilling News
  • Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Regulation | Statewide PA

    MSC Corrects/Clarifies Article Touting HB 1391 Royalty Bill

    October 12, 2016October 12, 2016

    rebuttalYesterday MDN ran a story reporting that a landowner rebellion against post-production cost deductions from royalties is spreading beyond just Bradford County in northeastern Pennsylvania–to counties in southwestern PA (see PA Royalty Unrest Spreads from Bradford County to Western PA). We picked up part of an article run by the Washington, PA Observer-Reporter. The Marcellus Shale Coalition sent along an email rebuttal of that article, to “correct/clarify several issues in the article” that they believe either mischaracterize the situation, or statements that are outright wrong. Here is the MSC’s rebuttal…
    Read More “MSC Corrects/Clarifies Article Touting HB 1391 Royalty Bill”

  • Air Quality | Hydraulic Fracturing | Industrywide Issues | Research

    2nd Study Affirms Cow Burps & Rice Paddies Causing Fugitive Methane

    October 12, 2016October 12, 2016

    cow-burpLast Friday MDN reported that none other than the man-made global warmists at the National Oceanic and Atmospheric Administration (NOAA) issued a research report admitting that cows and rice farms are the real cause of an increase in global methane emissions–NOT shale drilling (see NOAA Research: Cows & Rice Farms Biggest Source of Fugitive Methane). So far the radicals at the Sierra Club, Food & Water Watch, National Resources Defense Council, Riverkeeper and other loons who rail against fossil fuels have been silent. A second such study has now been published, by a different group of researchers. This new study concludes the same thing. Researchers from the Department of Earth Sciences at Royal Holloway, University of London have just published a study in the journal Global Biochemical Cycles (full copy below). The study “refutes conventional wisdom” and finds: “Recent rises in levels of methane in our atmosphere is being driven by biological sources, such as swamp gas, cow burps, or rice fields, rather than fossil fuel emissions.” This is sure to send the antis into therapy…
    Read More “2nd Study Affirms Cow Burps & Rice Paddies Causing Fugitive Methane”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Lancaster County | Pennsylvania | Pipelines | Regulation | Williams

    Atlantic Sunrise Pipeline – Supporters and Detractors in Southeast PA

    October 12, 2016October 12, 2016
    Atlantic Sunrise Pipeline map
    Click for larger version

    MDN has written dozens of articles about Williams’ 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 (see a list of our Atlantic Sunrise articles here). What’s the current status? It’s going through a regulatory review with the Federal Energy Regulatory Commission (FERC). Back in May the project received a favorable Environmental Impact Statement from FERC (see Williams’ Atlantic Sunrise Pipeline Gets Positive EIS from FERC). Williams expects final FERC approval later this year or early next year, despite negative feedback from the Obama EPA, Obama Dept. of Interior, and despite ongoing frivolous lawsuits from the likes of THE Delaware Riverkeeper. Mark our words: this project will get built. Below are a couple of bits of news about Atlantic Sunrise. One is about a recent debate, held in Lancaster Monday evening, among three candidates for the PA Senate. Predictably the Democrat is against Atlantic Sunrise, and the Republican is for it. Also below is news that the usual nutty suspects, including the Allegheny Defense Project, Appalachian Mountain Advocates, the Sierra Club (among others) have filed yet another request with FERC to block the project by changing the already-issued favorable EIS…
    Read More “Atlantic Sunrise Pipeline – Supporters and Detractors in Southeast PA”

  • Industrywide Issues | Jobs | Research

    White House Report Acknowledges Role of Shale Gas in Manuf Jobs

    October 12, 2016October 12, 2016

    drilling-equals-jobs.jpgEven the anti-fossil fuel Barack Hussein Obama can’t ignore the fact that natural gas saved his pathetic administration’s rear-end over the past eight years. Without shale gas, the economy would be further in the crapper than it is now. Last week the White House National Economic Council released a report titled “Revitalizing American Manufacturing” (full copy below) to commemorate Manufacturing Day. The report finds the U.S. economy added some 800,000 manufacturing jobs since 2010–largely due to the shale revolution and cheap natural gas…
    Read More “White House Report Acknowledges Role of Shale Gas in Manuf Jobs”

  • Industrywide Issues | Public Opinion

    API Runs “I Am An Energy Voter” Ads – Are They Effective?

    October 12, 2016October 12, 2016

    energy-voterIf you’re anything like us, you’re TIRED of the political commercials that play ad nauseam on television and radio. At least with junk mail and newspaper advertisements you can safely ignore them. But lately the political commercials for local races (not even counting Trump & Clinton) on TV and radio threatens our sanity. Watching the evening news is impossible due to these commercials. But our eyes and ears perked up we heard a different kind of political ad–something called, “I am an energy voter.” The ads were created and are sponsored/paid for by the American Petroleum Institute. Just prior to the election the API has ramped up these ads, extolling the virtues of oil and gas production, and encouraging voters to consider casting a vote “for” energy. We’ve heard these ads on local radio and TV. As good as these ads are, we found ourselves wondering, what is a vote “for” energy, anyway? The ads are nonpartisan–they don’t identify a candidate that is “for” energy. So we wonder if these ads, while good, are just a big vanity spend on the part of the API. Are the ads having an impact? Is the message of being “for” oil and gas being driven into viewers’ psyches?…
    Read More “API Runs “I Am An Energy Voter” Ads – Are They Effective?”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Oct 12, 2016

    October 12, 2016October 13, 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: Impact of northeast gas demand on Marcellus production; Garrett County panel considers regulating drilling; shale has been a giant boon to OH economy; Phila. Energy Solutions laying off workers; natural gas rodeo; why the shale band will break; natgas prices will heat up as oil drilling cools off; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Oct 12, 2016”

  • Energy Services | Industrywide Issues | Kinder Morgan | Ohio | Pipelines | Research | Statewide OH

    UTOPIA Pipeline Construction Begins, OSU to Study Hole-Digging

    October 11, 2016October 11, 2016

    obviousKinder Morgan’s UTOPIA (Utica To Ontario Pipeline Access) pipeline is a 12-inch ethane pipeline that will run ~240 miles and will only be built in Ohio–therefore the Federal Energy Regulatory Commission (FERC) won’t be involved in permitting the project. In September we noted that Kinder Morgan is still facing opposition from some Ohio landowners (see UTOPIA Pipeline Still Battling OH Landowners with Eminent Domain). Aside from a few holdout landowners, Kinder Morgan will begin building UTOPIA next month, with plans to turn it on in 2018. When Kinder begins to dig trenches next month to lay the pipeline, researchers from Ohio State University will be watching–conducting “research” into “soil disturbances caused by pipelines and its impact on farmland.” Kinder Morgan is helping fund the 3-year project–kicking in $200,000. Forgive us for saying so, but the entire premise sounds kind of dumb. Farmers dig holes and trenches in their fields all the time and nobody “studies” it to see what kind of impacts it may have. You dig a hole (or a trench), you put something in it, you cover it back up with the same dirt you just dug up and then replant grass or crops over top of it. Not a lot of mystery. It’s been going on for millennia…
    Read More “UTOPIA Pipeline Construction Begins, OSU to Study Hole-Digging”

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

    PA Royalty Unrest Spreads from Bradford County to Western PA

    October 11, 2016October 11, 2016
    pa-regions
    Click for larger version

    This week Pennsylvania House Bill (HB) 1391 is back on the docket. At least, that’s what landowners in Bradford County are hoping. As we’ve covered for some time now, there is a growing split between landowners and drillers over abuses in deducting post-production costs from royalty checks. HB 1391 aims to fix that situation by guaranteeing a minimum 12.5% royalty for landowners, regardless of post-production costs. Until now most of the complaints about royalty shafting have come from landowners in Bradford County. But it seems Bradford (in northeastern PA) is not alone in their discontent. Landowners in Washington and Greene counties (western PA) are also upset with diminished royalty checks and are adding their voices to the effort pushing for passage of HB 1391. Does the bill stand a chance of passing this year?…
    Read More “PA Royalty Unrest Spreads from Bradford County to Western PA”

  • Energy Services | Industrywide Issues | Pipelines | Regulation | Spectra Energy

    NH Regulators Veto Access Northeast Pipeline Contract

    October 11, 2016October 11, 2016
    MAP-Access-Northeast-V1-02-11-2015
    Click for larger version

    Spectra Energy first announced an unnamed pipeline project to shuttle gas from the Marcellus/Utica to New England in July 2014 (see Spectra Energy to the Rescue! New England Pipeline Expansion). In September 2014 Spectra announced they had named the project Access Northeast and added Northeast Utilities–now called Eversource Energy–as a partner (see Spectra Energy New England Pipeline Gets a Name & a Partner). In December 2014, Spectra formed an alliance with a competitor, the Iroquois Gas Transmission pipeline, to further extend the reach of the project (see Spectra Energy Alliance with Iroquois to Sell Marcellus Gas to NE). The project is pegged to cost around $3 billion and will connect four different pipeline systems: Texas Eastern, Algonquin Gas Transmission, Iroquois and Maritimes & Northeast. Kinder Morgan’s competing project, Northeast Energy Direct, dropped out of the running (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). Spectra stayed in–but was dealt a body blow by Massachusetts (see MA Supreme Court Ruling Endangers New England Gas Pipelines). But Spectra committed to pushing forward anyway (see Spectra Spits in MA High Court’s Eye – We’ll Still Build Pipeline). Now comes another body blow: New Hampshire regulators are following MA’s lead in not allowing utility company Eversource pass along some of the costs of the pipeline to electric rate payers…
    Read More “NH Regulators Veto Access Northeast Pipeline Contract”

  • Anti-Drilling/Fossil Fuel | Crime | Energy Services | Industrywide Issues | New York | Pipelines | Regulation | Spectra Energy | Westchester County

    Part of AIM Pipeline Begins to Flow; Protesters Hide in Pipe

    October 11, 2016October 11, 2016
    map_algonquin_full
    Click for larger version

    Spectra Energy’s Algonquin Incremental Market (AIM) pipeline project is an $876 million expansion of the existing Algonquin pipeline system that will carry 342 million cubic feet of natural gas per day to New England states that badly need the gas. On March 3, 2015 the Federal Energy Regulatory Commission (FERC) issued their final approval for the project, allowing it to go forward. Construction began last year and continues now. Earlier this year NY Gov. Andrew Cuomo tried to stop work on the pipeline (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). A few months later NY’s lib Dem senators got in on the act (see NY’s 2 Radical Senators Call for Halt in Building Algonquin Pipeline). We’re happy to report none of the above efforts to stop AIM succeeded. Last week FERC issued an order allowing part of the AIM project–in Putnam County, NY, and Fairfield County, CT–to power up and begin service. However, not all of the project is yet built. Four nutjob protesters criminally locked themselves inside a piece of pipeline in Verplanck (Westchester County), NY yesterday. They were there to protest “filthy fossil fuels” like natural gas…
    Read More “Part of AIM Pipeline Begins to Flow; Protesters Hide in Pipe”

  • Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation

    Multiple Lawsuits Against Chesapeake for Alleged Securities Fraud

    October 11, 2016October 11, 2016

    wild-kingdomWe remember watching Marlin Perkins on “Mutual of Omaha’s Wild Kingdom” growing up. For the younger generations, it was a TV program roughly the equivalent of watching today’s Discovery channel. In particular we remember watching a wildebeest being taken down by a pack of jackals. The jackals would watch for an advantage–a wildebeest that was old and slow, or wounded, or maybe too young to keep up with the herd. They would single it out and one after another jump on it to bring it down. That’s the image that floated through our heads as we noticed a sudden surge of law firms filing class action lawsuits against Chesapeake Energy. No, these lawsuits have nothing to do with Chesapeake shorting landowners in their royalty checks–there’s already a bunch of those lawsuits. These lawsuits are new and stem from the recent announcement that the U.S. Department of Justice, Securities and Exchange Commission and even the U.S. Postal Service have launched investigations into Chesapeake (see Everybody Just Subpoenaed Chesapeake Energy for Everything). The suspicion is that Chesapeake may have engaged in securities fraud by making misleading or false statements that led investors to buy or sell stocks, bonds and debts in the company. With blood drawn (i.e. government suspicion and investigation), a plethora (at least 10) law firms have jumped on the back of the beast and are attempting to bring it down…
    Read More “Multiple Lawsuits Against Chesapeake for Alleged Securities Fraud”

  • Statewide WV | West Virginia

    Carbon Natural Gas Buys 2,300 Conventional NatGas Wells in WV

    October 11, 2016October 11, 2016
    carbon-natural-gas
    Carbon Natural Gas’ operations

    Carbon Natural Gas, an independent oil and gas exploration company which develops and operates oil and gas properties in the Appalachian and Illinois Basin regions of the United States, has just picked up 2,300 natural gas wells in West Virginia for $9 million. The seller was not named in the announcement. One thing we know: These are not Marcellus/Utica wells. They are conventional (shallow, vertical-only) wells. How do we know? They’re only producing a cumulative 9.3 million cubic feet (MMcf) of gas per day. Most Marcellus/Utica wells produce that much in a day or two–by themselves! However, one never knows what mineral rights go along with such a sale. It may be the case (although Carbon doesn’t say) that deeper mineral rights to one day drill in the Marcellus/Utica are part of the deal. Which is why we are highlighting the sale…
    Read More “Carbon Natural Gas Buys 2,300 Conventional NatGas Wells in WV”

  • Industrywide Issues | M&A | Ohio | Statewide OH

    Gas Natural Sells Itself to First Reserve Energy Infrastructure

    October 11, 2016October 11, 2016

    first-reserve-energyGas Natural Inc., a local distribution company (LDC), or “gas utility” company has operations in four different states, including Ohio. Gas Natural also owns pipelines and processing facilities. Gas Natural has just sold itself to energy investment firm First Reserve for $139 million…
    Read More “Gas Natural Sells Itself to First Reserve Energy Infrastructure”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Oct 11, 2016

    October 11, 2016October 11, 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: Shell wants to sell electricity in Ohio; PA’s rig count goes up again; leaked emails shows Hillary knew Russians were backing anti-fracking groups; natgas hits a new 22-month high; what happens when Saudi Arabia quits exporting oil?; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Oct 11, 2016”

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

    New Drilling Rules Take Effect in PA, Despite Objections from Industry

    October 10, 2016October 10, 2016

    objectionMDN previously reported that the Pennsylvania Department of Environmental Protection (DEP) planned to publish the final regulations in the Oct. 8 Pennsylvania Bulletin (see PA’s New Article 78a Drilling Regs Go into Effect Oct 8). The Pennsylvania Independent Oil & Gas Association (PIOGA) previously sued asking the Commonwealth Court to block the new regulations based on the legal fact that key parts of Act 13, which Chapter 78a is based on, have been “enjoined” that prevent certain Chapter 78a provisions from being adopted in their current form. Essentially PIOGA (a) warned PA agencies they should not publish the new regulations, which prevents the regs from going into effect, until the invalid provisions are removed, and (b) further sued to keep the regulations stopped (see PIOGA Makes Legal Play to Stop Chapter 78a Regs from Taking Effect). PIOGA’s play to block the new regs didn’t work–at least not yet. On Friday the DEP moved forward with publishing the new rules. The new rules are in effect NOW, as of Saturday. However, yet another round of public comment will be accepted on the now-in-place rules, with a deadline of Dec. 7…
    Read More “New Drilling Rules Take Effect in PA, Despite Objections from Industry”

  • Industrywide Issues | Luzerne County | Pennsylvania | Statewide PA | Taxation

    Unbelievable: PA Dems Continue to Push for Severance Tax

    October 10, 2016October 10, 2016

    unbelievableLet’s be honest: Pennsylvania already has a severance tax. It’s called an impact fee + corporate income tax. The combination of the two taxes in PA levies a collective “tax” on drillers as high OR HIGHER than other oil and gas states, like Texas, Oklahoma and Louisiana. To enact a new/extra severance tax on PA drillers, as Democrats like Sen. John Yudichak (Wilkes-Barre area) propose to do, would kill off what little drilling is happening in PA. It would make drilling in PA unprofitable. Yet Yudichak and others in his party see the recent PA Supreme Court decision as an excuse to push, one more time, for a severance tax. What is it about Democrats and their insatiable lust for your money?…
    Read More “Unbelievable: PA Dems Continue to Push for Severance Tax”

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