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Marcellus Drilling News
  • 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
    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

    finedThe 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

    spit.jpgLast 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

    roadshowWe 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 map
    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””

  • Energy Companies | Rex Energy

    Rex Energy Closes on Illinois Basin Sale, Now 100% Marc/Utica

    August 25, 2016August 25, 2016

    100 pureIn June MDN reported the news that Rex Energy had cut a deal to sell its Illinois Basin acreage for $40 million to Campbell Development Group (see Rex Energy Selling Illinois Basin Assets, Focus 100% on Marcellus). The deal is now done and Rex Energy is now a “pure play” (100%) Marcellus/Utica driller. Cool!…
    Read More “Rex Energy Closes on Illinois Basin Sale, Now 100% Marc/Utica”

  • Economic Impact | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA

    4 Pipelines Critical to Future of PA’s Marcellus Industry

    August 25, 2016August 25, 2016

    3plus1Gene Barr is the president and CEO of the Pennsylvania Chamber of Business and Industry. The PA Chamber is a big supporter of the Marcellus industry. Writing a column that appears in a recent edition of the York Dispatch, Barr gives full-throated support to three pipelines “critical” to PA’s future: Williams’ Atlantic Sunrise; Sunoco Logistics’ Mariner East 2; and UGI Energy Services’ PennEast. We really liked Barr’s column (read it below). However, we would add a fourth pipeline to his list of critically important pipelines for PA drillers: the Williams Constitution Pipeline. While the three projects Barr names will be mostly built in PA, the Constitution Pipeline will be mostly built in New York State. We suppose that’s all we have to say for you to know why that project is in trouble. At any rate, here’s the reasons Barr offers for supporting the three pipelines he mentions in his column, reasons that equally apply to the much-needed Constitution Pipeline too…
    Read More “4 Pipelines Critical to Future of PA’s Marcellus Industry”

  • Electrical Generation | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

    UGI Breaks Ground on Sunbury Pipeline for NEPA Electric Plant

    August 25, 2016August 25, 2016
    Sunbury-pipeline
    Sunbury Pipeline – click for larger version

    In December 2014 Pennsylvania utility company UGI pre-filed an application to build a new 35-mile pipeline to feed a natgas-powered electric generating plant in Snyder County, PA (see UGI Pre-Files with FERC for New Marcellus Pipeline in Central PA and UGI Building 35-Mile Pipeline for Panda Power Electric Plant). The project is estimated to cost $150 million. It took long enough, but in May the Federal Energy Regulatory Commission (FERC) finally approved the project, with the seemingly impossible prospect it would be built by this November (see UGI Sunbury Pipeline Gets FERC Approval, Built by November?). The 20-inch Sunbury Pipeline will start in Lycoming County and travel through Montour, Union, and Northumberland counties, cross the Susquehanna River and ending up at Hummel Station Plant in Shamokin Dam in Synder County. On Wednesday, UGI broke ground on the new pipeline. The impossible just became possible!…
    Read More “UGI Breaks Ground on Sunbury Pipeline for NEPA Electric Plant”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Aug 25, 2016

    August 25, 2016August 25, 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: EIA says Marcellus/Utica production will increase for decades; NOVA’s plan to flow more Marcellus/Utica ethane to Canada; NY AG Schneiderman continues to get trapped in his own ExxonKnew lies; poetic justice for Constitution Pipeline; CONSOL starts drilling again in the Utica; Utica Shale Academy enters third year; DEP chief runs around checking “backyards”; natgas heading to $3 again, going higher?; the “shale-band” test; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Aug 25, 2016”

  • About MDN

    MDN Short Vacation for 2 Days – Off Tuesday & Wednesday

    August 22, 2016August 22, 2016

    gone fishingMarcellus Drilling News doesn’t take a lot of vacation, but we try to take at least a few days in the summer and near the Christmas holiday. MDN will be off for the next two days–Tuesday and Wednesday. We’ll return on Thursday with all the Marcellus/Utica news that’s fit to print!

  • Energy Services | Enterprise Products Partners | Industrywide Issues | M&A | Williams

    Corporate Raiders Try to Incite Shareholder Revolt at Williams

    August 22, 2016August 22, 2016

    Mini-MeOn Friday MDN reported that Enterprise Products Partners, a huge midstream company, wants to buy Williams (see Here We Go Again: Enterprise Products Wants to Buy Williams). Yes, we’ve seen this movie before. Last year Energy Transfer Equity’s CEO Kelcy Warren tried the same thing–which ended in disaster earlier this year (see Dead as a Doornail: ETE Terminates Merger with Williams). History is repeating itself. The same agitators–corporate raiders–are once again pressuring Williams to accept the Enterprise offer as they tried to get Williams to accept ETE’s earlier offer. Keith “Mini Me” Meister, a protege of Carl Icahn, is one of the corporate raiders pressuring Williams. Why? So Mini-Me can flip his large amount of Williams stock at a considerable profit (screwing employees of Williams in the process). Once again, here’s why corporate raiders, like Keith Meister, are disgusting low-lifes in our book…
    Read More “Corporate Raiders Try to Incite Shareholder Revolt at Williams”

  • Ashtabula County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Velocys

    Ashtabula, OH GTL Plant on Hold “Indefinitely”

    August 22, 2016August 22, 2016

    VelocysLast month MDN brought you the news that UK-based Velocys, a company that builds gas-to-liquids (GTL) plants has, for now, put a previously planned GTL plant project in Ashtabula, OH on hold (see Velocys Puts Ashtabula, OH Gas-to-Liquids Plant Put on Hold). As a quick reminder, GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and (for Ashtabula) waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing a GTL plant in eastern Ohio. Buried in a press release in early July, Velocys said it had put the Ashtabula project “on hold” because they can’t get investors to pony up money for the project. Later in July the company issued a newsletter in which the reason for the delay seems to have changed. They now say the wax market in North America is not economical–at least right now. The local newspaper in Ashtabula picked up on that statement and is saying the Ashtabula project is on hold “indefinitely”…
    Read More “Ashtabula, OH GTL Plant on Hold “Indefinitely””

  • Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

    TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica

    August 22, 2016August 22, 2016

    TransCanadaHow low can you go, and still make money? That’s the question TransCanada is testing in a bid to compete with cheap Marcellus/Utica natural gas that is heading to Canada via new pipelines, including Energy Transfer’s Rover and Spectra Energy’s NEXUS pipelines. Last month MDN reported that TransCanada has a plan to use existing pipelines from Western Canada to Eastern Canada–from Alberta to Toronto–to ship more natural gas from west to east (see TransCanada’s Plan to Undercut/Displace Gas from the Marcellus). The aim is to make it less expensive to get gas from Western Canada, some 2,400 miles away, than from the Marcellus, just 400 miles away. As an interesting aside, even though TransCanada wants to compete with gas coming from the Marcellus/Utica, they recently bought a big piece of Marcellus/Utica infrastructure by buying Columbia Pipeline (see TransCanada and Columbia Pipeline Tie the Knot Today). If you can’t beat ’em, buy ’em. Here’s the latest on TransCanada’s low low low pipeline rates (42% less) to ship gas from Western Canada…
    Read More “TransCanada Pipe Drops Price 42% to Compete with Marcellus/Utica”

  • Energy Services | Industrywide Issues | Iroquois Gas Transmission | Pipelines | Regulation

    Iroquois Gas Pipeline Offers to Cut Rates for Customers

    August 22, 2016August 22, 2016
    Iroquois Gas
    Click for larger version

    This past January the Federal Energy Regulatory Commission (FERC) launched five investigations into four pipelines, three of which operate in the northeast, to determine whether or not those pipelines have been “substantially” overcharging their customers with the excuse of “we have to recover our costs” (see FERC Investigates 3 Northeast Pipelines for Overcharging). Although you might think the free market would govern what pipelines charge, pipelines, like other utilities, don’t operate in a totally free market. You can’t just up and leave one pipeline and take your gas to another. The government grants permission to operate, and the government keeps an eye on the rates charged–just like they do with your local gas and electric company. One of the pipelines under investigation is the Iroquois Gas Transmission pipeline, which runs mostly through New York State. Iroquois has just filed an offer to lower rates for its shippers, to make the FERC investigation go away…
    Read More “Iroquois Gas Pipeline Offers to Cut Rates for Customers”

  • Commodity Price | Industrywide Issues

    Some Marcellus/Utica Drillers Make Money Selling Gas at $0!

    August 22, 2016August 22, 2016

    revelationThe ace reporters and analysts at Natural Gas Intelligence (NGI) recently came through yet another quarterly earnings season with their sanity mostly intact. 😉 MDN editor Jim Willis works with NGI expert analyst Patrick Rau on occasion. Pat is a terrific guy and one of the sharpest energy analysts Jim has had the pleasure of meeting. Pat sat through dozens of quarterly earnings calls for drillers, oilfield services companies and more over the past month or so. What did Pat learn from all those calls? Are there trends emerging? That was the upshot of an article written by NGI reporter Leticia Gonzales last week. It’s a must-read article (see The Worst May Be Over, But NatGas Recovery Will Be Slow, Sometimes Painful). Letty not only interviewed Pat, but other analysts from other sources as well, including RBN Energy, Genscape and Wood Mackenzie. Among the eye-popping news coming from this wide-ranging article is this: Marcellus drillers can make money even at super low prices for natural gas–typically around $2-2.50 per thousand cubic feet (Mcf). In some cases, because drillers extract NGLs (natural gas liquids) along with dry gas (methane), and they can GIVE AWAY the methane for NOTHING and STILL make money! Here’s a short excerpt that was, for us, a revelation…
    Read More “Some Marcellus/Utica Drillers Make Money Selling Gas at $0!”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | New York | Pipelines | Spectra Energy | Statewide NY

    Antis Ask NY Senators to Beseech Lord Obama to Stop AIM Pipeline

    August 22, 2016August 22, 2016
    AlgonquinPipeline_0
    Click for larger version

    The irrational demands of radicals in New York State are getting out of hand. In March New York’s spineless Gov. Andrew Cuomo asked the Federal Energy Regulatory Commission (FERC) to stop work on the Algonquin Incremental Marketing (AIM) pipeline project because it comes close to an existing nuclear power plant (see Gov. Cuomo Asks FERC to Halt Algonquin Pipeline Near Nuke Plant). A few days later the Federal Energy Regulatory Commission (FERC) told Gov. Andy to stuff it (see FERC Denies NY Request to Stop Work on Pipeline Near Nuke Plant). Following FERC’s denial, some of the worst of the worst Big Green groups, including Riverkeeper Inc., Sierra Club and Food & Water Watch sued to stop it (see Radical Enviro Groups File Appeal to Stop AIM Pipeline in NY/CT). Apparently that effort is either taking too long, or the radicals believe it’s not going to work, because they are now calling it “an emergency” and demanding New York’s far-left U.S. Senators, Chuck “the schmuck” Schumer and Kirsten “nobody ever heard of her” Gillibrand “carry the message” to the White House to stop the AIM project. That is, they want High Lord Obama to issue another one of his illegal Executive Orders or lean on FERC to stop the AIM project…
    Read More “Antis Ask NY Senators to Beseech Lord Obama to Stop AIM Pipeline”

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