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Marcellus Drilling News
  • Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    PA Gov Wolf “Eager” to Sign Drilling Law Forced Down His Throat

    June 16, 2016July 29, 2016
    tom wolf
    PA Gov. Tom Wolf

    7/29/16 Update: Please see the note on this article for clarification on when/if new shale drilling regulations (known as Article 78a) will take effect.

    We can’t stop laughing. PA’s very liberal Governor, Tom Wolf, has been obstinate in demanding onerous new drilling rules for the conventional, as well as unconventional (shale) drilling industry since he took office. Reworked drilling rules were done and ready to go under previous Governor, Tom Corbett. Then Corbett lost to Wolf, and Wolf demanded to change common sense rules everyone had already agreed to (see New Draft Drilling Regulations in PA: Wastewater Impoundments Out). It became obvious that Democrats were trying to run PA’s traditional, small conventional drillers out of business by applying the same regulations to them that will apply to shale drillers. The Pennsylvania Independent Oil & Gas Association (PIOGA) represents many of those small conventional drillers and vigorously fought back (see PIOGA Turns Up the Heat on Wolf/Quigley Over TAB/Article 78 and PA Board Adopts New Drilling Regs, PIOGA Blasts DEP “Deceptive”). In the end, Wolf’s own Democrat Party legislators in the House and Senate abandoned him and the writing was on the wall: The entire package of drilling rules, for both conventional (Article 78) and shale (Article 78a) was headed for defeat. The legislature was about to repeal both sets of newly-minted DEP rules–so Wolf pivoted and decided to accept half a loaf–passage of the shale rules, Article 78a (see Wolf Really Didn’t Wise Up, He Just Took Half a Loaf re Drilling Regs). Yesterday the the PA House voted 141-46 to require the Department of Environmental Protection (DEP) to start from scratch with proposed rules for the state’s conventional drilling industry. The Senate later agreed, voting 37-12 in favor of Senate Bill (SB) 279. The bill will now be signed by Wolf. Why are we laughing? Because Wolf’s office issued a press release yesterday essentially taking credit for getting SB 279 passed–like it was somehow his idea all along, when in fact he was forced into it…
    Read More “PA Gov Wolf “Eager” to Sign Drilling Law Forced Down His Throat”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

    Radical Enviros Mad at PA Gov Wolf over Compromises with Repubs

    June 16, 2016June 16, 2016

    apostatePennsylvania State Rep. Greg Vitali, a far-left Democrat from the Philadelphia area, is a good soldier who knows how to take orders. When Big Green says “Salute!” Greg snaps his arm around faster than you can say “global warming.” A few weeks ago PA’s radical Secretary of the Dept. of Environmental Protection (DEP), John Quigley, got fired over an email he unethically sent from a private email account to his close buddies in the Big Green movement, asking them to out so-called “apostate” Democrats who refuse to support his (Quigley’s) radical, anti-drilling agenda (see Smoking Gun: Copy of the Email that Got John Quigley Fired). Apparently one of the apostates is none other than Gov. Wolf himself–according to soldier Vitali who is the designated verbal grenade thrower–tossing some pretty mean-spirited jabs in Wolf’s direction for Wolf’s willingness to accept half a loaf and adopt new drilling regulations for shale/unconventional, while letting rules for conventional drilling slide (see PA Gov Wolf “Eager” to Sign Drilling Law Forced Down His Throat). Vitali and his media enablers (StateImpact Pennsylvania, funded by taxpayer dollars) are savaging Wolf, throwing him under the bus. Not only for exempting conventional drillers from new rules, but also for Wolf’s willingness to bend and compromise with Republicans on other environmental issues. Apostate! (As Quigley calls it in his profane email.) As we previously commented, we enjoy watching the Dems eat their own…
    Read More “Radical Enviros Mad at PA Gov Wolf over Compromises with Repubs”

  • Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

    Homeowner Claims Range Doctored Well Test Results, Suing for Fraud

    June 16, 2016June 16, 2016

    lawsuitIn 2014, the Pennsylvania Dept. of Environmental Protection (DEP) fined Range Resources a whopping $4.15 million for violations related to several of Range’s wastewater impoundments in Washington County, PA (see PA DEP Fines Range Resources $4.15M for Wastewater Impoundments). Some of the nearby neighbors claimed that Range’s impoundments had leaked, contaminating their water wells. One of those landowners was Loren Kiskadden, who sued Range in civil court. The problem is, the DEP found that the nearby Yeager impoundment had not contaminated Kiskadden’s well, which led to allegations that the DEP had bungled the investigation (see Did DEP Mishandle Range Wastewater Impoundment Investigation?). Kiskadden had to press on, because if the DEP didn’t reverse its finding, he would have no civil case against Range. Press on he did (see Hearing on Range Yeager Impoundment/Water Contamination Continues). The matter was heard by the DEP’s Environmental Hearing Board (EHB). The EHB found that Kiskadden didn’t have a case–his well was not contaminated by Range’s impoundment. So Kiskadden and his lawyers asked for a re-hearing. Kiskadden’s re-hearing request got turned down (see DEP Final Determination: Range Didn’t Pollute Kiskadden Water Well). End of story. Except, we now have a new wrinkle. Another homeowner–we’re not sure if this is for the Yeager or a different impoundment–is suing both Range and a lab Range used to test their water well claiming fraud–that Range changed the test results that the DEP based its “faulty” investigation on…
    Read More “Homeowner Claims Range Doctored Well Test Results, Suing for Fraud”

  • Economic Impact | Energy Services | Industrywide Issues | Jobs | NEXUS Pipeline | Ohio | Pipelines | Spectra Energy | Statewide OH

    NEXUS Awards Contracts to Build Pipeline – Union & Non-Union Labor

    June 16, 2016June 16, 2016
    NEXUS map
    NEXUS map – click for larger version

    Spectra Energy has awarded four contracts to three companies to build the NEXUS Pipeline–a $2 billion, 255-mile interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada. Two of the three companies will use union labor, the third will not–and that’s causing some pushback from labor groups in Ohio. A NEXUS rep said that 79% of the pipeline will be built by union labor. Labor unions would prefer that percentage be 100. Spectra/NEXUS guaranteed at least 50% of the labor would be union–so the contracts far exceed their promise. A dollar figure was not released for the work. Here’s who got the work to build NEXUS…
    Read More “NEXUS Awards Contracts to Build Pipeline – Union & Non-Union Labor”

  • Columbia Pipeline Group | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | West Virginia

    Federal EPA Throws Cold Water on Leach XPress, Rayne Xpress Pipes

    June 16, 2016June 16, 2016
    Columbia Leach Express map
    Columbia Leach Express map – click for larger version

    In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. In April of this year, the Federal Energy Regulatory Commission (FERC) issued their draft Environmental Impact Statement (EIS), which was positive. Earlier this week the federal Environmental Protection Agency (EPA) came along with their comments and decided to throw cold water on both projects. Why are we not surprised?…
    Read More “Federal EPA Throws Cold Water on Leach XPress, Rayne Xpress Pipes”

  • Beck Energy | Energy Companies | Industrywide Issues | Litigation | Ohio | Regulation | Summit County

    Beck Energy Lawyer Responds to Frivilous Munroe Falls Zoning Case

    June 16, 2016June 16, 2016

    Beck EnergyEarlier this month MDN shared with you the news that Munroe Falls (Summit County), OH had filed yet another frivolous lawsuit against Beck Energy to prevent drilling–after already losing a similar case before the Ohio Supreme Court (see Munroe Falls Won’t Let it Go: Files New Lawsuit Against Beck Energy). MDN received a statement from Beck Energy’s lawyer which says, among other things: “the complaint the City of Munroe Falls recently filed lacks any good faith basis under existing law, and it is clear Munroe Falls’ intention in filing this complaint is to harass and maliciously injure Beck Energy.” Fighting words! Sounds like the taxpayers of Munroe Falls should get ready to open their pocketbooks to pay into a settlement with Beck after Beck wins again. Our question: When will Munroe Falls voters get rid of the obstinate jerks running the place? Here’s the statement from Beck’s lawyer…
    Read More “Beck Energy Lawyer Responds to Frivilous Munroe Falls Zoning Case”

  • Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

    Williams Tries, One Last Time, to Garner Support for ETE Merger

    June 16, 2016June 16, 2016

    As the World TurnsYesterday Williams published a letter from Institutional Shareholder Services (ISS)–a “leading proxy advisory firm”–recommending that shareholders in Williams should vote “yes” on the merger with Energy Transfer Equity (ETE). Williams will hold a special shareholder’s meeting on Monday, June 27, to vote on the proposed merger. Even if a majority votes in favor of the merger–far from a foregone conclusion–it’s still not a done deal. ETE continues to assert that expert opinions on the taxability of the merger may scuttle the deal. Just a few weeks ago ETE sued Williams to abort the deal (see Midstream Soap: ETE Sues to Walk Away from Williams Takeover Deal). We view all of this–voting for the merger, etc.–as posturing. Fodder for the lawyers to use after the deal fails to consummate. Here’s the latest in our ongoing soap opera that we call, As the (Midstream) World Turns…
    Read More “Williams Tries, One Last Time, to Garner Support for ETE Merger”

  • Industrywide Issues | Regulation | Wastewater

    EPA Bans Disposal of Frack Wastewater at Public Sewer Plants

    June 16, 2016June 16, 2016

    EPA-logo.jpgNot long after Michael Krancer was appointed Secretary of the Pennsylvania Dept. of Environmental Protection in 2011, he “requested” (which was more order than request) that municipal sewage treatment plants still accepting and processing Marcellus drilling wastewater stop the practice. At the time there were 15 plants accepting Marcellus wastewater. Under pressure from Krancer, they ended the practice in May 2011 (see PA DEP, Marcellus Shale Coalition Admit Drilling Wastewater Likely Contaminating Drinking Water). His prescience was rewarded. A year later there were far lower bromide levels in PA rivers (see Marcellus Wastewater Ban Leads to Lower Bromide in PA Rivers). That’s how things should work: the state looks after its own environment. But that means less power for the power-mad bureaucrats in Washington, DC. Right on cue, before Obama is ejected from office next January (thank God!), his out-of-control EPA has issued rules that do what Krancer did without a new law back in 2011. The EPA has issued a new regulation (i.e. unlegislated law) that declares no municipal sewage treatment plant in any state (not just PA) can accept and process shale wastewater…
    Read More “EPA Bans Disposal of Frack Wastewater at Public Sewer Plants”

  • CNG/LNG | Exporting | Industrywide Issues | Regulation

    Canada Grants Final Approval for Bear Head LNG Facility

    June 16, 2016June 16, 2016

    stamp-of-approval.jpgFor some time now we’ve had our eye on Bear Head LNG, a $2.2 billion LNG export project proposed by Australian company Liquefied Natural Gas Limited (LNGL), to be built in Nova Scotia, Canada. In August 2015 the Canadian National Energy Board (NEB) approved LNG exports for the project. In February of this year the U.S. Dept. of Energy also gave its blessing, because the gas it will export will largely come from the Marcellus/Utica region (see Bear Head LNG Exports Get Final DOE Approval – Good for Marcellus). Although the NEB approved the project last summer, that approval was subject to a further approval by the “Governor in Council”–some sort of final bureaucratic signature required. LNGL announced earlier today that they have received the Governor in Council signoff. The Bear Head LNG project is now fully, officially, approved by the Canadian government. The question remains, will it get built?…
    Read More “Canada Grants Final Approval for Bear Head LNG Facility”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Thu, Jun 16, 2016

    June 16, 2016June 16, 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: Ohio has 12 rigs running, 1 new Utica permit; Kinder Morgan donates $15K to Wooster YMCA; hope that Wolf will back off on severance tax; Rogersville Shale drilling at stand-still; Maine needs more natgas; large stockpiles of natgas choking price rally; Speaker Ryan unveils plan to roll back Obama enviro regs; and more!

    Read More “Marcellus & Utica Shale Story Links: Thu, Jun 16, 2016”

  • Energy Companies | Rex Energy

    Rex Energy Selling Illinois Basin Assets, Focus 100% on Marcellus

    June 15, 2016June 15, 2016
    Rex Enegy Moraine East
    Rex Enegy Moraine East – click for larger version

    Rex Energy has always been one of our favorite smaller drillers in the Marcellus/Utica region. Yes, we know you’re not supposed to love some of your drilling children more than others–but we do! We’ve often called Rex “the little energy company that could, and does.” Like most E&Ps (exploration and production companies), Rex has had a tough time coming through the recent crash in the price of gas and oil (see Rex Energy Converts IOUs into Common Stock, Avoids Bankruptcy?; Rex Energy 1Q16: Lost $62M, but Still Drilling in the Marc/Utica; and Rex Energy Swapping $631M in Private IOUs for Public IOUs). Rex has always concentrated on two regions: the Marcellus/Utica, and the Illinois Basin. No more. Rex is now a “pure play” driller after announcing it will sell all of its Illinois Basin assets–for $40 million to Campbell Development Group…
    Read More “Rex Energy Selling Illinois Basin Assets, Focus 100% on Marcellus”

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

    Supporters Dominate 2nd FERC Hearing for Atlantic Sunrise Pipeline

    June 15, 2016June 15, 2016

    Atlantic SunriseThe silent pipeline-supporting majority became more vocal last night at a second hearing in as many days for the Williams Atlantic Sunrise Pipeline. Monday night’s Federal Energy Regulatory Commission (FERC) public hearing was a circus-like freak show, complete with one crazy wearing a cape like he’s Superman (see Lancaster Antis Try to Bully Pipeline Supporters, FERC Reps). In contrast, last night’s FERC hearing at Lebanon Valley College in Annville was dominated by solid, clear-thinking residents who support the pipeline and the benefits it will bring to the community. Oh there were a few crazies present, but nothing like the night before…
    Read More “Supporters Dominate 2nd FERC Hearing for Atlantic Sunrise Pipeline”

  • Crime | Industrywide Issues | Monroe County | Ohio | Wastewater

    OH Conventional Oil Well Driller Fined for Dumping Brine in Ditch

    June 15, 2016June 15, 2016

    jail cellWe have to confess this story completely escaped us–until now. But we think we know why. We spotted a story (below) in a Wheeling, WV newspaper about an Ohio driller who was caught–back in 2011–dumping about 50 gallons per week of brine from some of his oil wells into an open ditch in Monroe County, OH. The story implies the brine (i.e. wastewater) is from fracked wells. The story is wrong. The brine is from conventional oil wells, not fracked shale wells. The driller/operator of the wells is one Donald Hercher and he’s just been sentenced to four days in jail, two years of probation, and a $70,000 fine. Aside from setting the record straight, the reason the story interests us is because of several other aspects of Hercher’s punishment–he’s being forced to write and publish an article in three trade journals “to educate readers on the ‘Waterways of the U.S.'” and to donate $5,000 to a private organization…
    Read More “OH Conventional Oil Well Driller Fined for Dumping Brine in Ditch”

  • Allegheny County | Electrical Generation | Industrywide Issues | Pennsylvania | Regulation

    Elizabeth Twp Rejects Clean Invenergy Power Plant at Dump Site

    June 15, 2016June 15, 2016
    Elizabeth Township PA
    Elizabeth Township PA – Credit: Wikipedia

    Invenergy is in the process of building a $500 million Marcellus gas-fired electric plant in Jessup (Lackawanna County), PA–near Scranton, PA in the northeastern part of the state (see PA DEP Approves Jessup, PA Marcellus Gas Electric Plant). When built, and every indication is that it will get built this year, the Jessup plant will be the largest gas-fired plant in the state, generating 1,480 megawatts of electricity by using clean-burning Marcellus Shale gas. With that successful project under way, Invenergy turned their attention to the southwestern part of PA and announced their desire/plan to build a second plant in Elizabeth Township, in Allegheny County (see Invenergy Eyes SWPA for Second Marcellus-Powered Electric Plant). The second plant would be much smaller, at 550 megawatts, and would be built on a brownfield site near Pittsburgh. Even though the site where Invenergy wants to build is a former landfill where fly ash was dumped, making it unusable for just about any other purpose, a group of local residents would prefer to keep it a contaminated dump rather than convert it to a beneficial use like generating electricity (see Invenergy Gets Pushback on Proposed Natgas Power Plant in SWPA). Such is the kooky world of antis. Unfortunately, the local kook antis have now enlisted the support of Elizabeth Township’s zoning board…
    Read More “Elizabeth Twp Rejects Clean Invenergy Power Plant at Dump Site”

  • Cambria County | Electrical Generation | Industrywide Issues | Pennsylvania | Regulation

    Voice Support for CPV NatGas Power Plant in Cambria County, PA

    June 15, 2016June 15, 2016
    Cambria County PA
    Cambria County PA – Credit: Wikipedia

    Anti fossil fuelers in Pennsylvania have gone so bizarrely off the rails they object to ANYTHING that uses, touches or mentions “natural gas.” They have, quite simply, left their senses. They are irrational. One of the latest examples is their total opposition to allowing new clean-burning natural gas-fired electric plants to be built. We told you in a companion story today that Elizabeth Township (near Pittsburgh) is refusing to site a natgas-fired electric plant on an old landfill site, suitable for no other purpose (see Elizabeth Twp Rejects Clean Invenergy Power Plant at Dump Site). The next battle will be at a hearing for a proposed plant in Cambria County. Competitive Power Ventures (CPV) is planning a $900 million natgas-fired power plant to be located off Route 271 near Vinco in Cambria County (see 2 Natgas-Fired Electric Power Plants Coming to Cambria County, PA). The PA Dept. of Environmental Protection will hold a hearing in Mineral Point next Tuesday on the proposed CPV project. It’s important for natural gas supporters to turn out and voice your support…
    Read More “Voice Support for CPV NatGas Power Plant in Cambria County, PA”

  • Energy Services | Industrywide Issues | Michigan | NEXUS Pipeline | Regulation | Statewide MI

    DTE Energy Wants Ratepayers to Pay if NEXUS Pipe is Unprofitable

    June 15, 2016June 15, 2016
    Map_NEXUS_Full
    NEXUS Pipeline Project – click for larger version

    DTE Energy is a Detroit-based energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan, and a natural gas utility serving 1.2 million customers in Michigan. DTE’s businesses include power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading. DTE has its fingers in a lot of energy pies. DTE is one of the main customers for the 255-mile, $2 billion NEXUS interstate pipeline that will run from Ohio through Michigan and eventually to the Dawn Hub in Ontario, Canada (see Spectra Energy Files Formal FERC Application for NEXUS Pipeline). DTE is also one of the backers/partners in NEXUS–providing money for the project. Spectra Energy will be the managing partner that actually builds and maintains NEXUS. DTE has asked Michigan regulators for a guarantee that it can pass along NEXUS costs to gas and electric ratepayers IF the utility’s gas supply costs from NEXUS prove to be unprofitable. That doesn’t sit well with many people, including Michigan’s Attorney General…
    Read More “DTE Energy Wants Ratepayers to Pay if NEXUS Pipe is Unprofitable”

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