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    Court Forces SWEPI to Pay PA Landowners $4.1M in Lease Dispute

    Gavel-falling.jpgThe U.S. District Court for the Middle District of Pennsylvania has sided with landowners in a dispute with Shell’s shale drilling arm, called SWEPI (Shell Western Exploration Production Inc.). SWEPI signed a lease with two landowners who own a collective 1,036 acres in Lycoming County. SWEPI promised a $4,000 per acre signing bonus, but a few months after signing SWEPI decided they didn’t want the acreage after all and tried to cancel the lease and the bonus payment. The judge ordered SWEPI to pay $2,072,000 to each of the two landowner families…
    Read More “Court Forces SWEPI to Pay PA Landowners $4.1M in Lease Dispute”

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    CONSOL’s First Pittsburgh Airport Wells Begin to Flow NatGas

    Pittsburgh AirportUPDATE 7/20/16: Yesterday afternoon, after we had published this story, CONSOL Energy issued a press release announcing a few more details. We have included the release below.

    In early 2013 the Pittsburgh International Airport and Allegheny County, PA signed a deal with CONSOL Energy to lease 9,000 acres surrounding the airport for natural gas drilling (see $50M Check in the Mail: Pittsburgh Airport Lease a Done Deal). The airport received a $50 million signing bonus and the promise of 18% royalties on anything produced and sold. In August, CONSOL released their drilling plan, which calls for 6 well pads, 47 Marcellus Shale wells on those pads (with the possibility of drilling Upper Devonian wells later on), three fresh water ponds (“impoundments”) and 17 miles of gathering pipelines (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). All told, in the coming years the airport may see as much a $1 billion in remuneration. It’s staggering. CONSOL has been busily drilling (MDN editor Jim Willis has spotted rigs when he’s flown into/out of the airport). Exciting stuff. Now, finally, the first six Marcellus wells are online and producing…
    Read More “CONSOL’s First Pittsburgh Airport Wells Begin to Flow NatGas”

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    Guernsey County, OH Opposes Facility to Treat/Store Drill Cuttings

    Guernsey County, OH
    Guernsey County, OH

    EnerGreen 360 wants to build a facility in Guernsey County, OH to treat and re-use drill cuttings (leftover rock and dirt from shale drilling). The plan is to clean up the cuttings and use the leftover leftovers (rock and dirt) to backfill part of a business center were the facility would be located–near Cambridge, OH. But County Commissioners are unanimously against the plan, saying that although Guernsey sees a lot of Utica drilling, producing lots of drill cuttings, the county already absorbs “more than our share of frack-related waste.” The commissioners cite multiple injection wells in the county as being evidence of shouldering more than their fair share of the burden. So apparently the commissioners want some other county to take Guernsey’s drill cuttings instead, since Guernsey takes other counties’ shale wastewater. Fair? Not fair? You decide…
    Read More “Guernsey County, OH Opposes Facility to Treat/Store Drill Cuttings”

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    Which Energy-Related Items Survived, Which Didn’t in PA Budget

    SurvivorSome interesting Marcellus-related items were included in the recently adopted Pennsylvania state budget that have largely flown under the radar. There are also a few things that weren’t in the budget bill–previously intended to be part of it–that didn’t survive the process. At the top of the list is lack of a severance tax. But right behind that (for us) is that a gross receipts tax on natural gas use, which we thought would be part of the final deal, was not. As MDN previously reported, a gross receipts tax taxes end users of natural gas, in essence targeting low-income households (see Proposed NatGas Gross Receipts Tax Targets PA Low-Income Earners). So three cheers that those two onerous taxes–a severance tax and gross receipts tax–were eliminated by vigilant Republicans (Democrat Gov. Wolf wanted both). What about things that made it through? One item is an amendment that eliminates extra fees and permitting requirements if a driller happens ti “nip the top of the Onondaga” rock layer when drilling a Marcellus well, as sometimes happens. Another provision diverts some money from a fund intended to encourage “high performance buildings” to a program that gives businesses incentives to switch to using natural gas. Love it! Here’s what made the cut, and what didn’t, in the 2016/2017 PA budget…
    Read More “Which Energy-Related Items Survived, Which Didn’t in PA Budget”

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    Shell Cracker May Spur $2.3B Upgrade of Locks/Dams on Ohio River

    Ohio River Montgomery lock and dam
    Ohio River Montgomery lock and dam – click for larger version

    You may not think barging on the Ohio River has much to do with Shell’s plan to build an ethane cracker in Monaca (Beaver County), PA–but you would be wrong. The river has a great deal to do with that cracker plant, and Shell’s decision to build its plant in Monaca. For one thing, Shell plans to (already has) built two barge docks and has barged materials into the site for use in constructing the plant. For another, numerous manufacturing plants are expected to spring up around the cracker, like little satellites circling a planet, because they will use the ethylene and other materials produced by the cracker plant. Those manufacturers will also need cheap barge transportation for their products. The problem is, the locks and dams along the Ohio were built in the early Twentieth Century (between 1922-1936). They were updated in the 1980s and 1990s, but truth be told, the infrastructure is past its life expectancy already. If barge traffic picks up dramatically, that old infrastructure will show its age. Since 2003 the U.S. Army Corp of Engineers (USACE) has had a potential project on the books to study and upgrade the Ohio’s infrastructure. Shell’s announcement may be the impetus to get the USACE to launch its already pre-planned $2.3 billion lock and dam project for the Ohio River…
    Read More “Shell Cracker May Spur $2.3B Upgrade of Locks/Dams on Ohio River”

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    Eclipse Resources 2Q16: Drilling Resumes, 2 New Utica Wells

    Eclipse_logo_hiresIn what appears to be a new standard operating procedure, Eclipse Resources yesterday released their second quarter 2016 operating update, delaying the release of the “bad news” (i.e. financial update) until a later date. A few days Antero Resources and Gulfport both did the same thing. Drillers like to brag about increasing production, but hate to talk about how much money (at least on paper) they’re losing. We understand. Eclipse is a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio. What do we learn? Eclipse’s production went up 19% in 2Q16 over 2Q15. Previously the company had stopped all drilling, but they resumed again in 2Q16 (a good sign) and ended up drilling and completing 2 Utica wells during the quarter. Here’s the operational (not financial) update from Eclipse for 2Q16…
    Read More “Eclipse Resources 2Q16: Drilling Resumes, 2 New Utica Wells”

  • Marcellus & Utica Shale Story Links: Tue, Jul 19, 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: Drilling on upswing nationwide, but OH permitting down; PA rig count up for first time in months; antis protest pipeline in Mass.; how a single natgas-fired electric plant in VA is saving consumers billions; ND sues EPA over new methane rule; Chesapeake & Tom Ward sued for alleged collusion; oil & gas deals coming back; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jul 19, 2016”

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    FERC Rejects NY AG’s Anti-Constitution Pipeline Petition

    Eric-Schneiderman.jpg
    NY AG Eric Schneiderman – petition rejected by FERC

    In May MDN told you about a sleazy political move by New York’s corrupt Attorney General, Eric Scheiderman, who petitioned the Federal Energy Regulatory Commission (FERC) to investigate Williams over the Constitution Pipeline, with a recommendation that FERC withdraw its approval of the project (see NY Attorney General Asks FERC to Investigate Constitution Pipe). Schneiderman claimed that Williams was cutting trees along the path of the pipeline before the state had issued stream crossing permits (which it decided not to do). We told you, in a follow-up story, that Schneiderman’s claims of premature tree cutting by Williams was a fraud (see NY AG’s Allegation of Tree Cutting by Constitution Pipe a Fraud). A Binghamton Press & Sun-Bulletin investigation found that some trees along the pipeline’s path in New York State had been cut–but not by Williams. The landowners themselves were cutting the trees in anticipation of the project–to profit from the sale of the timber. On Friday FERC officially responded to the corrupt Schneiderman’s petition by saying, in so many words, to stuff it…
    Read More “FERC Rejects NY AG’s Anti-Constitution Pipeline Petition”

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    Former NY AG Emasculates Current AG, ExxonMobil Not Like Tobacco

    Dennis_C._Vacco
    Dennis Vacco – former NY AG

    Let’s add some insult to injury, because New York’s corrupt Attorney General, Eric Schneiderman, so richly deserves it. Today’s lead story on MDN is about the Federal Energy Regulatory Commission (FERC) rejecting a petition by AG Schneiderman–his request that FERC withdraw its approval of the Constitution Pipeline and investigate Williams over false allegations of premature tree clearing related to the project (see FERC Rejects NY AG’s Anti-Constitution Pipeline Petition). Schneiderman is a power-mad leftist, hellbent on shaking down so-called Big Oil companies like Exxon Mobil. Schneiderman himself has been caught in a collusion scandal with several other AGs and with Big Green groups to try and smear and extort Exxon (see NY AG, Others Served Congressional Subpoena re Exxon Witch Hunt). One of Schneiderman’s favorite (false) claims is that Exxon Mobil “knew” that mankind is causing mythical global warming by burning fossil fuels–and that they kept it secret–like Big Tobacco companies knew their product was causing cancer. Schneiderman hopes to sue Exxon and other Big Oil companies and extort gazillions of dollars from them. The Dems are rubbing their hands with glee at the prospect. Except…except none of their fairy tales are true and no one believes it. Into this mix, along has come a former New York Attorney General, Republican Dennis Vacco, who served as NY AG from 1995-1999. Vacco was part a group of AGs who successfully sued Big Tobacco, so he knows a thing or two about that case. Vacco says, writing in the Washington Post, that Schneiderman’s claims of a case against Exxon is NOTHING LIKE the case against Big Tobacco. Vacco emasculates Schneiderman and his claims of a case against Exxon…
    Read More “Former NY AG Emasculates Current AG, ExxonMobil Not Like Tobacco”

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    Radical Enviro Groups Suffer Big Court Defeat re Cove Point LNG

    Gavel-falling.jpgAnti-drilling zealots attempting to stop the Cove Point, Maryland LNG (liquefied natural gas) from going online have failed in court, again. And they failed big time. MDN reported in April that a group of Big Green groups, including the Sierra Club, the Chesapeake Climate Action Network, the Patuxent Riverkeeper, EarthReports Inc. and Earthjustice colluded together to sue in federal appeals court to try and stop the project (see Green Groups Ask DC Judge to Stop Construction at Cove Point LNG). On Friday the U.S. Court of Appeals for the District of Columbia ruled against the groups. The argument they raised (and keep raising) is that the Federal Energy Regulatory Commission (FERC) did not take into account so-called cumulative effects in permissioning such a facility. That is, because there is an export facility, that means there will be more drilling and fracking, and that means more air pollution, etc. The court rejected that claim and said in their decision (full copy below) that FERC is not required to consider such cumulative affects. Indeed, FERC’s charter prohibits them from considering such effects. This is a crushing defeat for Big Green–people and corporations who seek to profit from uneconomical solar and wind projects by unfairly crushing the competition (natgas)…
    Read More “Radical Enviro Groups Suffer Big Court Defeat re Cove Point LNG”

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    Crack of Light – OH Sand Producer Says Market Turning Around

    crack of lightFairmount Santrol, an Ohio-based sand producer that sells sand as a proppant for use in Utica and Marcellus Shale drilling, released their preliminary second quarter 2016 results last week. Although the company expects to lose between $91-$93 million for the quarter (compared to a profit of $14.1 million a year ago), things are not all bad. Yes, it’s been tough for Fairmount and other companies in the oil and gas industry. Really tough. But Fairmount’s CEO Jenniffer Deckard, said this: “…we are also encouraged by the early signs of improvement we are seeing in the proppant market.” In other words, a crack of light is peeking through the door and we’re beginning to see the great slowdown in drilling come to an end…
    Read More “Crack of Light – OH Sand Producer Says Market Turning Around”

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    Hubris: PA Gov. Wolf Caves on Budget, then Claims He Won

    tom wolf
    PA Gov Wolf takes credit for budget he didn’t sign

    As MDN reported last week, the Pennsylvania Republican-controlled legislature passed a budget, and then passed $1.3 billion in new taxes to help pay for it. Not part of the package was a severance tax (see PA Legislature Passes $1.3B in Tax Hikes, No Severance Tax). Last year PA Gov. Wolf threw a temper tantrum and waited nine months before allowing a budget to pass, without his signature and with no severance tax (see PA Gov. Wolf Caves on Budget Deal After 9 Mo. of Temper Tantrums). This year it only took a few weeks for Wolf to cave. He got virtually nothing he wanted in the budget–education funding far below levels he wanted, etc. And yet, he’s claiming this year’s budget was a success–because of him. Talk about hubris…
    Read More “Hubris: PA Gov. Wolf Caves on Budget, then Claims He Won”

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    Media Downplays Sunoco’s Huge Court Victory re Mariner East 2

    Sunoco LogisticsLast Friday MDN brought you the really big news that Sunoco Logistics Partners had won a major appeals court case that recognizes them as a public utility in Pennsylvania with the right to use eminent domain to build the Mariner East 2 NGL pipeline (see Sunoco LP Wins Major Court Decision for Mariner East 2 Pipeline). Although Big Green groups like the Philadelphia-based Clean Air Council are attempting to spin the decision as no big deal–it is a big deal, and they know it. So how does the Associated Press, in bed with Big Green, report the decision? This is their headline: “Sunoco clears 1 legal hurdle after pipeline project ruling.” Laughable! It’s more than one hurdle. Sunoco essentially put another 7 points on the board with 5 seconds left to play…
    Read More “Media Downplays Sunoco’s Huge Court Victory re Mariner East 2”

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    Spectra Energy LNG Storage Project Proposed for Somerset, MA

    Somerset MAIt’s hard to believe something as simple and uncomplicated and safe has a storage tank for liquefied natural gas (LNG) could be controversial. But if you irrationally believe all fossil fuels are evil, you’re against such a storage tank. That’s the battle now shaping up in Somerset, Massachusetts. Spectra Energy is looking to build “two giant storage tanks full of liquefied natural gas” at a site in town , near Walker Street. The town administrator is in favor because Spectra will pay the town $10 million in lieu of taxes. But anti-fossil fuel nutters are rising up to oppose the project–even though they do so using the very fossil fuels the abhor every single day of their pathetic lives–being wholly dependent on fossil fuels for their very existence…
    Read More “Spectra Energy LNG Storage Project Proposed for Somerset, MA”

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    MSC Says Scranton Newspaper “Plays Fast and Loose” with Tax Truth

    David Spigelmyer
    David Spigelmyer

    A couple of weeks ago MDN noticed a typical anti-drilling “tax the $#@!” out of the Marcellus editorial in the Democrat-run Scranton Times-Tribune. We ignored it. They run such blather on a regular basis and it’s largely un-noteworthy–at least for MDN readers. Except the Times-Tribune continues to pollute the minds of its readers with half-truths and outright lies. Somebody noticed this particular whopper, that somehow the Marcellus industry isn’t paying its “fair share” of taxes. The somebody who noticed was Marcellus Shale Coalition president David Spigelmyer. He wrote a letter to the editor. His response scorches the Times-Tribune editorial and exposes the lies in it…
    Read More “MSC Says Scranton Newspaper “Plays Fast and Loose” with Tax Truth”

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    Marcellus Shale Gives Dominion Unstoppable Competitive Advantage

    wide moatEver hear of a “wide economic moat?” No, we hadn’t either. That is, until we read a Morningstar analyst writing about mighty utility and midstream giant Dominion. A “wide economic moat,” according to Investopedia, is “A type of sustainable competitive advantage that a business possesses that makes it difficult for rivals to wear down its market share and profit. The term is derived from the water filled moats that surrounded medieval castles.” Makes sense. We’d call it being so far ahead of the pack no one else can catch up. Whatever metaphor floats your boat. The interesting part (for MDN) in the Morningstar analysis of Dominion is *why* they are head and shoulders above their midstream and utility peers. Why? “[N]otably the Atlantic Coast Pipeline and Cove Point LNG facility.” That is, because of the Marcellus Shale. The analyst predicts Cove Point LNG will be the only LNG export facility on the East Coast. That would certainly qualify as a competitive advantage for Dominion…
    Read More “Marcellus Shale Gives Dominion Unstoppable Competitive Advantage”