• Marcellus & Utica Shale Story Links: Fri, Aug 12, 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: Pipeline takeaway capacity in the Marcellus/Utica; a few people show up to protest NEXUS pipeline in OH; Mariner East 2 pipeline hearing draws a big crowd; energy industry driving higher business bankruptcies in Pittsburgh; Trump pledges an energy “revolution”; $245 billion coming in o&g investments; and more!
    Read More “Marcellus & Utica Shale Story Links: Fri, Aug 12, 2016”

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    Bloomberg Predicts Court Will Strip NY’s Right to Stop Constitution

    Constitution PipelineWe have been making the point, loudly, for the past year, that IF New York State blocks the Constitution Pipeline, as they have now done, the state runs the very real risk of having the federal government strip away their right to make such decisions about any federally-approved pipeline project. We’ve previously warned that New York is in grave danger of losing their power by attempting to block the Constitution. We wrote the following in October 2015: When MDN editor Jim Willis attended the Shale Insight conference in Philadelphia in September, he listened to a panel discussion of midstream (pipeline) experts, including a former FERC commissioner. He got to ask a question and the question, roughly, was this: “The NY DEC is currently holding up the FERC-approved Constitution Pipeline. What if the DEC refuses to issue the necessary permits? What happens next?” The answer Jim got was, “It depends.” The bottom line seems to be that it’s likely FERC (and Williams) will need to take the DEC to court. The DEC frankly has no legal right to prevent a federally approved project from being built. That’s the bottom line. It may take a court to force the DEC (and Gov. Cuomo) to act, but in this matter the law is on our side. This is not a question of “if,” it is a question of “when” the pipeline will get built (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). And now we get to brag about how prescient we were. Williams did indeed have to take New York to court, and now a Bloomberg analyst has written an article expressing essentially the same sentiment we expressed last year (see it below), saying Williams–the builder of the Constitution Pipeline–is “favored to prevail” in one (if not both) legal challenges they have filed. A victory by Williams will result in neutering New York’s authority to block this and other similar projects…
    Read More “Bloomberg Predicts Court Will Strip NY’s Right to Stop Constitution”

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    Court Rejects Dela. Riverkeeper Case Against PA DEP Pipe Approval

    happy dance - SnoopyTime to do a happy dance. THE (arrogant) Delaware Riverkeeper has lost yet another court case–one of many such cases they continuously file to stop any fossil fuel-related project in the northeast. In March MDN told you that THE Delaware Riverkeeper had sued the Federal Energy Regulatory Commission, challenging their decision to approve the Williams Transco Pipeline’s Leidy Southeast Expansion from PA to New York City (see Dela. Riverkeeper Sues FERC Again – Over Leidy Pipeline Expansion). Riverkeeper wanted to hedge its bets–so at some point (not sure when) they also sued the Pennsylvania Dept. of Environmental Protection (DEP) and Riverkeeper’s philosophical clones at the New Jersey Conservation Foundation sued the New Jersey Department of Environmental Protection (NJDEP) claiming the agencies acted “arbitrarily or capriciously” in granting state permits for the Leidy Southeast Expansion project. The U.S. Court of Appeals for the Third Circuit this week slapped down Riverkeeper and their clones in NJ, saying the states were well within their rights to grant those permits, and they did nothing wrong…
    Read More “Court Rejects Dela. Riverkeeper Case Against PA DEP Pipe Approval”

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    Judge Rules No Class Action Against Chesapeake in PA Royalty Case

    go it aloneA landowner couple in Bradford County, PA, Edward and Kathleen Ostroski, filed a royalty lawsuit against Chesapeake Energy claiming Chesapeake was screwing them out of money by conducting “creative” accounting and deducting expenses that shouldn’t be deducted. Seems like there’s hardly a state where Chessy drills where someone has not filed a similar lawsuit against the company. However, in the Ostroski case, the couple claimed (or rather, their lawyers claimed) the case should be a class action. That there are in fact some 2,000 other landowners similarly affected by Chesapeake’s actions. A U.S. Middle District judge ruled on Monday that the Ostroskis may pursue their case–but only for themselves. There will be no class action. If other landowners feel cheated, they will have to bring their own lawsuits against the company…
    Read More “Judge Rules No Class Action Against Chesapeake in PA Royalty Case”

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    WellDog Launches Shale SweetSpotter After Successful Marcellus Test

    welldogWellDog (what a great name!) announced on Monday the launch of a new service called Shale SweetSpotter (another great name!). Clever marketing folks at WellDog, we’ll grant them that. Shale SweetSpotter is “the first commercial reservoir-evaluation analysis technology specific to unconventional natural gas.” In English please! “We’ve just developed a way to tell drillers where oil and gas is locked away in shale layers in the acreage they’ve leased.” Apparently it’s pretty darned good. WellDog partnered up with Shell to test their service in the Marcellus and the field trials were declared “successful”…
    Read More “WellDog Launches Shale SweetSpotter After Successful Marcellus Test”

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    SailingStone Capital Buys 11% of Range Stock, Gets Board Seat

    SailingStoneInvestment firm SailingStone Capital Partners recently purchased enough stock that the firm now owns 11% of Range Resources. That’s more than enough to exert great power and control. And so they have. That 11% stake in the company has “encouraged” (forced?) Range to grant SailingStone a seat on the board of directors. We were, at first, concerned. Is this yet another corporate raider out to force a company (Range) to layoff employees and sell assets in a bid to force the stock price higher so they can dump it and make a big profit? We don’t think so. We find no evidence that SailingStone is anything other than an investor with a lot of money who likes what they see in Range. Below is the official announcement, followed by commentary on SailingStone’s motivation for buying up Range stock…
    Read More “SailingStone Capital Buys 11% of Range Stock, Gets Board Seat”

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    No Methane Migration in PA Water Wells from Shale Drilling in 2015

    zeroLast week MDN highlighted and shared with you a top notch new report just issued by the Pennsylvania Dept. of Environmental Protection–the PA Oil and Gas Annual Report for 2015 (see PA Releases 2015 Oil & Gas Annual Report (Very Cool)). The report is full of charts and graphs and very interesting commentary. We love it! If you dig deep, you’ll find a startling statistic that anti-drilling zealots don’t want you know: Last year there were no (ZERO) cases of methane migration into water wells caused by oil and gas drilling in the Keystone State. You read that right. NONE. That’s something all sane people can celebrate. See how far we’ve come in just a few short years?…
    Read More “No Methane Migration in PA Water Wells from Shale Drilling in 2015”

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    Bold Move – Williams Selling Canadian Assets for $1B

    boldEarlier this week Williams announced a deal to sell its Canadian businesses and assets to Inter Pipeline for $1 billion. Williams is wasting no time following the aborted merger attempt by Energy Transfer Equity to buy Williams. Following that aborted attempt, nearly half of the Williams board quit because they couldn’t get their grubby hands on big piles of money (see Half of Williams Board, Including 2 Corporate Raiders, Quit). Good riddance. Williams CEO Alan Armstrong has been under extreme pressure to step down–which he has resisted. Armstrong is soldiering on and this is his first big, bold move since the palace coup failed. Armstrong says the Canadian asset sale will help fund major capital projects in the second half of 2016…
    Read More “Bold Move – Williams Selling Canadian Assets for $1B”

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    Put-Up Job: Yale “Researchers” Meet with Locals in Belmont County

    YaleIn June MDN told you about another sham “study” on the way from an anti-drilling “researcher” from Yale University, funded by Big Green groups (see Yale Arrives in Belmont County to Study the Evils of Fracking). Nicole Deziel arrived in Belmont and announced, in so many words, she would drag a $20 bill through a trailer park (literally willing to pay only $20) to “study” air and water samples from residents’ domiciles as part of a new research “project” with a predetermined outcome–that they’re being poisoned by fracking. Ms. Deziel wanted 100 participants and ended up with 66. After eight weeks of collecting samples and talking to people, Ms. Deziel held a wrap-up rally with area residents before departing town to discuss the “study”–saying she has no conclusions, yet. The reason we know this latest Yale study is a put-up job, and not real science, is because at the very same wrap-up meeting residents also heard from the radical anti-drilling group Ohio Environmental Council. That’s the tip-off that this was not real research but hucksterism with a predetermined outcome…
    Read More “Put-Up Job: Yale “Researchers” Meet with Locals in Belmont County”

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    OH Gov Kasich Issues Edict to Drillers on Emergency Notifications

    edictOhio Gov. John “foreigner hunter” Kasich is finally getting back to work after it has sunk in he’s not going to be the Republican Party’s nominee for president. One of the first things up on the agenda for Kasich: Issue executive orders. On August 9th Kasich issued Executive Order (i.e. Edict) 2016-04K which forces companies in the oil and gas industry to immediately report o&g emergencies to the Ohio Dept. of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management. The ODNR will then figure out who else needs to get notified and who should respond. Kasich’s Edict will expire in four months and is a band aid solution until the ODNR can adopt a formal, final rule…
    Read More “OH Gov Kasich Issues Edict to Drillers on Emergency Notifications”

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    Letter Proves NY AG, Others “Unlawfully” Ganged Up on ExxonMobil

    Eric-Schneiderman.jpg
    NY AG Eric Schneiderman – corrupt

    Once again there is HUGE news that points to “unlawful” (i.e. illegal) actions on the part of New York State Attorney General Eric Schneiderman–and mainstream media is ignoring it. Previously the Energy & Environment Legal Institute (E&E Legal) released copies of communications between Schneiderman, Massachusetts AG Maura Healey and other lefty Dems to engage in an unethical secrecy pact in their campaign to shake down Exxon Mobil by claiming the company “knew” man-made global warming exists and that burning the nasty fossil fuels the company produces contributes to it (see Smoking Gun: AGs Signed Pact to Keep Exxon Documents Secret). Now E&E Legal has released communications that show Schneiderman et al “unlawfully” colluded by forming an “informal coalition…to stem climate change and expand the availability and usage of renewable energy”. That is, they sought to attack a private company, Exxon, for not admitting mankind is causing a catastrophic toasting of Mom Earth. The AGs decided Obama’s Paris agreement needed some help–and they would do so by agreeing, and keeping secret their agreement, to target private companies like Exxon who won’t roll over and play dead on the issue of global warming. AG Schneiderman and the other lefty AGs have been caught corrupting our system of justice by forming a gang to bully companies and individuals into silence. Will we now see any justice against Schneiderman and the other law breakers? We’re not holding our breath…
    Read More “Letter Proves NY AG, Others “Unlawfully” Ganged Up on ExxonMobil”

  • Marcellus & Utica Shale Story Links: Thu, Aug 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: Utica rigs up by one; ODNR issues land unitization orders; OH Supreme Court considers 1989 DMA; Chesapeake Energy exiting the Barnett Shale; shale companies weathering the slide in crude prices; pump more sand says E&Ps; propane exports and ship cancellations; Texas looks to undo New York judge’s ruling related to canceling midstream contracts; China’s shale gas will never catch America’s; and more!
    Read More “Marcellus & Utica Shale Story Links: Thu, Aug 11, 2016”

  • MDN Update from the Road – Full Strength MDN Returns Tomorrow

    coffeeEvery now and again MDN editor Jim Willis emerges from his writing cave in Binghamton, NY to travel. Such is the case this week. Normally you (hopefully) wouldn’t know that Jim is on the road as he does his best to keep the news coming. Today, however, is different. There will be no new stories posted today. For the past two days Jim attended the excellent “Analyst Training in the Power and Gas Sectors,” hosted by S&P Global Market Intelligence (formerly SNL KnowledgeCenter), in New York City. NYC is Jim’s favorite large city in the world. 🙂 Jim was there to improve his education on how the natural gas and electricity markets fit together–an increasingly important part of the “drilling” story in the Marcellus/Utica. And what an education it was! Jim remains on the road for the balance of the week, visiting the good folks of NGI (Natural Gas Intelligence) in the Washington, DC area. Between the seminar and traveling to DC (and not sleeping so well in hotel rooms), Jim couldn’t quite swing posting stories today. This is a RARE occurrence. A “no story day” has happened perhaps once or twice in the past 5+ years we’ve had paying subscribers. Our apologies in advance! What it means is that you will have 100% full strength, amped up, aromatic Marcellus/Utica news again beginning tomorrow. Jim is already working on some big stories. Stay tuned!

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    Rumor: US Methanol Building 5 Methanol Plants in WV

    rumor mongeringMethanol plants convert natural gas into methanol, used as a chemical feedstock (or raw material) to create other things, like gasoline, antifreeze and more. More commonly you may call it a gas-to-liquids (GTL) plant. Methanol plants have the capacity to create a big demand for natural gas and sop up some of the oversupply we have in the Marcellus/Utica. In May we told you about Primus Green Energy’s plan to build a 160 metric tons per day (MT/day) methanol plant for Tauber Oil somewhere in the Marcellus (see Customer Announced for Primus Green Energy’s GTL Methanol Plant). We have more exciting news. US Methanol, according to their website, is working on two Marcellus methanol plants, coming to West Virginia. One plant, called Liberty One, will produce 175,000 metrics tons per annum, or about 480 MT/day. Liberty Two will produce 150,000 MT/annum, or a about 410 MT/day. Here’s the really really exciting news. We’ve stumbled across a rumor that U.S. Methanol is actually planning to build five methanol plants total. According to the rumor, we know where the first two plants already announced (Liberty One and Two) will be built–AND we know which driller they’ve contracted with to supply the natgas for those plants…
    Read More “Rumor: US Methanol Building 5 Methanol Plants in WV”

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    Big Stakes: Gorsline Zoning Case Goes to PA Supreme Court

    theyre backGuess who’s back with a case now before the Pennsylvania Supreme Court? Yep, the odious nutters from Big Green Groups PennFuture, THE (arrogant) Delaware Riverkeeper, and the Peters Township gang. You may recall we reported last September of the humiliating defeat suffered by these groups in the “Gorsline” case (see Major Victory for PA Landowners/Drillers in Lycoming County Case). It was a Lycoming County zoning case before the Pennsylvania Commonwealth Court. In Gorsline v. Board of Supervisors of Fairfield Township, anti-drilling neighbors, including Brian and Dawn Gorsline, Paul and Michele Batkowski and others (collectively “Gorsline”) sued to stop a conditional use permit granted by Fairfield Township to allow Inflection Energy to construct a well pad on the property of Donald and Eleanor Shaheen. The case was weak, but the lowest court in the PA court system–the Court of Common Pleas (i.e. county court)–said the ninny nanny neighbors had a right to strip away the Shaheen’s property rights to allow drilling on their own property. The PA Commonwealth Court obliterated the faulty reasoning of the lower court and, significantly, redefined how courts should interpret the results of the Act 13 zoning lawsuit that allows local municipalities the right to restrict shale drilling. Unfortunately the matter won’t rest there. The Pennsylvania Supreme Court has taken up the Gorsline case on appeal. The PA Supreme Court has a 5-2 majority of left-leaning Democrats. Below we have a copy of the brief filed by PennFuture on behalf of the ninny nanny Gorslines, along with “friend of the court” briefs filed by THE Delaware Riverkeeper and Peters Township. Folks, this is a dangerous case the for drilling industry… Read More “Big Stakes: Gorsline Zoning Case Goes to PA Supreme Court”

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    Cayuga Power Plant Stays Open (Burning Coal) – Thx to Fractivists

    Cayuga power plant
    Credit: Ithaca Journal

    In July 2013 we wrote this: “It would be hysterically funny if it weren’t so pathetically sad. So-called environmentalists don’t want an electrical generating power plant in Tompkins County, near Ithaca, NY, to switch from burning coal to natural gas because they’re afraid it will mean more fracking. Talk about cuckoo birds” (see NY Eco Group Protest to Stop Plant Converting from Coal to NatGas). In August 2013 we pointed out that if the plant can’t convert and ends up closing, the local school district is the biggest loser (see If NY Electric Plant Can’t Convert to NatGas, School Gets Screwed). The owner of the plant, Cayuga Operating Co., ended up selling it. The new owner, Riesling Power, tried to continue to process to get approval for converting the coal-fired plant to burn natural gas (not only cleaner, but also cheaper). Ultimately, the Cuomo-controlled Public Service Commission (PSC) turned down the request to convert. So guess what? The new owner certainly isn’t closing the plant after investing all that money. They’re going to keep operating it as a coal-fired plant–belching out far more pollution than a natgas plant would. Congratulations idiot fractivists (including obtuse Assemblywoman Barbara Lifton, who wanted the plant closed). You’ve just screwed yourselves and all of your neighbors too!…
    Read More “Cayuga Power Plant Stays Open (Burning Coal) – Thx to Fractivists”