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Marcellus Drilling News
  • Best of the Rest

    Marcellus & Utica Shale Story Links: Wed, Apr 20, 2016

    April 20, 2016April 20, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Check your lease for “implied requirement”; pipeline award given to Marietta prof; energy slowdown for rail suppliers; PA at low risk from induced earthquakes; FERC allows feed gas for Sabine Pass Train 2; gas buyers brace for new challenges; LNG exports sop up 35 Bcf from US gas glut; and more!
    Read More “Marcellus & Utica Shale Story Links: Wed, Apr 20, 2016”

  • Energy Companies | EQT Corp | Industrywide Issues | Regulation

    EQT 4th Driller to Receive “Sustainable Shale Development” Cert

    April 19, 2016April 19, 2016

    CSSDAnd then there were four. The Center for Sustainable Shale Development (CSSD) has fought stiff headwinds from the beginning. The organization was founded by a group of shale industry people and environmentalists reaching across the isle to forge strict standards that both sides can live with. Environmental leftists, like Mamma Teresa Heinz Kerry and her Heniz Endowments, pulled support and have actively worked against the CSSD (see She Speaks! Teresa Heinz Kerry Talks re Endowments Firings, CSSD). Other so-called environmental groups like the William Penn Foundation also bailed. But new supporters stepped into the breach to take their shoes (see CSSD Thrown a Lifeline from Richard King Mellon Foundation). On the industry side, not all that many stepped up to receive the CSSD’s thorough examination. So far three organizations have applied for and received CSSD certification: Chevron, Shell and CONSOL Energy. You can now add EQT, one of the founding sponsors of the organization, to the list. EQT’s own Andrew Place–no longer with EQT, now a Commissioner with the PA Public Utility Commission–was the first/interim Executive Director of the CSSD for the first year. So it’s only fitting that EQT practice what they preach and seek certification…
    Read More “EQT 4th Driller to Receive “Sustainable Shale Development” Cert”

  • Anti-Drilling/Fossil Fuel | Butler County | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Rex Energy

    Martian Victory! 2 Wells Near Mars School Nearly Done Drilling

    April 19, 2016April 19, 2016

    My Favorite MartianAs we have long chronicled, a few anti-drilling parents from the Mars School District (Butler County, far western part of the state), backed by a couple of Big Green groups from the other side of the state (THE Delaware Riverkeeper and the Clean Air Council, both based in the Philadelphia area), sued Middlesex Township to stop shale drilling in rural portions of the county. Rex Energy had applied for, was legally permitted for, but wasn’t allowed to drill a series of wells some three-fourths of a mile from the Mars School (for background, see our long list of “Martian” stories here). After costing local taxpayers more than $35,000 in legal fees, last November a county judge finally told Rex Energy they could go ahead and drill (see PA County Judge Rules Rex Can Begin Drilling First Martian Well). The fantastic news is, Rex has drilled! The company has drilled two initial wells which will be done within the next couple of weeks. Time to celebrate! NOTE: Somehow, against all odds, no children were harmed in the drilling of these wells…
    Read More “Martian Victory! 2 Wells Near Mars School Nearly Done Drilling”

  • Industrywide Issues | Pennsylvania | Research | Statewide PA

    Report: Drilling Hasn’t Strained Water Supplies in River Basin

    April 19, 2016April 19, 2016

    subbasmap_smallThe Susquehanna River Basin Commission (SRBC), charged with overseeing the health and use of the Susquehanna River (nation’s 16th largest river), has just issued a new report that examines the activities of the Commission surrounding its management of water use by the natural gas industry from 2008-2013. The report, titled “Water Use Associated with Natural Gas Shale Development: An Assessment of Activities Managed by the Susquehanna River Basin Commission July 2008 through December 2013” (full copy below) concludes that Marcellus drilling has not strained water supplies in the Susquehanna River Basin. The SRBC, unlike the DRBC (Delaware River Basin Commission) has responsibly managed water resources in its region and has not interfered with shale drilling–but rather has worked with drillers to successfully manage water resources. The DRBC, on the other hand, has been paralyzed, both without and within the organization, into blocking shale drilling within its jurisdiction. Here’s a report from the functional SRBC (as opposed to the dysfunctional DRBC)–a quasi-governmental organization that knows what it’s doing…
    Read More “Report: Drilling Hasn’t Strained Water Supplies in River Basin”

  • Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Supply Chain

    PA Biz Affected by Drilling Slowdown, but Hope is on the Horizon

    April 19, 2016April 19, 2016

    Don't Stop BelievinYesterday MDN told you the sad news that southwest PA hotel owners have hit a rough patch and some of them are putting their properties on the auction block (see SWPA Hotel Owners Catering to Marcellus Auctions Properties). We have more news today about businesses being adversely affected by the drilling slowdown in PA. This time the stories come from the eastern part of the state. And yes, once again one of the affected businesses is a motel. And also a cleaning service. Even though “it’s tough and getting tougher out there” as well all know, we also spotted a story of hope. George Stark, spokesman for Cabot Oil & Gas, says shale drilling WILL return to PA, and it will return “with a vengeance.” What does that mean?…
    Read More “PA Biz Affected by Drilling Slowdown, but Hope is on the Horizon”

  • Energy Services | Industrywide Issues | Jobs | M&A | Williams

    Williams Laying Off 10% of Workforce Ahead of Merger with ETE

    April 19, 2016April 19, 2016

    cutting jobsSomehow this bit of news escaped us a few weeks ago–perhaps because most of the impacts will happen in Oklahoma. Williams, the midstream giant that is currently being half-heartedly pursued by Energy Transfer Equity in a buyout/merger, is preparing for the eventual merger by laying off 10% of its workforce. Williams says they layoffs are due to “current market forces” and not because of the impending merger. Sorry–we don’t buy it. We suspect the layoffs have a great deal to do with trimming down before the company is eventually sold. Williams employs 6,700 people in North America and in late March they began dumping 10% (~670) of them. Some 100 of those layoffs are happening in the company’s Tulsa, OK headquarters. The others will come from across the country–including here in the Marcellus/Utica region…
    Read More “Williams Laying Off 10% of Workforce Ahead of Merger with ETE”

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

    UTOPIA Pipeline Sues Holdout OH Landowners Using Eminent Domain

    April 19, 2016April 19, 2016
    Utopia_Map
    UTOPIA Pipeline map – click for larger version

    Just yesterday MDN was commenting that it seems like Ohio antis aren’t all that bothered by Kinder Morgan’s UTOPIA ethane pipeline (see Why is UTOPIA Pipeline Less “Controversial” than NEXUS in Ohio?). Perhaps we spoke to soon! UTOPIA has gotten a lot more controversial since they just filed a flurry of lawsuits against holdout landowners, using eminent domain statutes. The real eye-popper we learn when reading about the eminent domain proceedings is just how much Kinder Morgan was offering for easements to property owners. Of course what you’re offered all depends on how many feet of land the pipeline will cross. Some landowners were offered up to $63,300 for an easement. In some cases, the offers were “more than 10 times the appraised value of the easement.” It’s certainly in a landowner’s best interest to settle before being forced to settle (for far less) via eminent domain. Here’s how it’s going for several landowners who object to the pipeline…
    Read More “UTOPIA Pipeline Sues Holdout OH Landowners Using Eminent Domain”

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

    4 Big Green Groups Pressure PA to Adopt Onerous New Drilling Regs

    April 19, 2016April 19, 2016

    Chesapeake Bay FoundationThis Thursday the Pennsylvania Independent Regulatory Review Commission (IRRC) will take up the matter of approving recently proposed new drilling regulations from the PA Dept. of Environmental Protection. Conventional drillers in PA strong object to the new rules, Aricles 78 and 78a, and sued to stop the IRRC from reviewing them. They lost (see Judge Won’t Grant Request to Stop Adoption of New PA Drilling Regs). Key committees in both the PA House and Senate also object to the new rules (see PA House and Senate Panels Vote to Reject DEP’s New Drilling Regs). So who wants the new rules? You guessed it–radical green groups in the state committed to ending all oil and gas drilling are supporting the new rules, which is all you need to know the rules and just how onerous they are. The Chesapeake Bay Foundation – Pennsylvania Office, the Pennsylvania Environmental Council, The Nature Conservancy – Pennsylvania Chapter, and the Western Pennsylvania Conservancy wrote a letter (below) asking the IRRC to approve the new regulations…
    Read More “4 Big Green Groups Pressure PA to Adopt Onerous New Drilling Regs”

  • Energy Services | Fairmont Brine Processing | Industrywide Issues | Wastewater

    Fairmont Brine Gets $90M to Build New Wastewater Recycling Plant

    April 19, 2016April 19, 2016

    Fairmont BrineFairmont Brine operates a small wastewater processing plant in Marion County, WV. Last year Antero Resources pulled the rug out from under Fairmont by jilting Fairmont and contracting with a French company to build a new $275 million wastewater treatment plant in WV (see Did Antero Pull the Rug Out from Under Fairmont Brine Processing?). But you can’t keep a good man, or a good company, down. Fairmont has taken it all in stride. In fact, the company is one of the few in the catbird seat during this current downturn in the oil and gas market. As we’ve described before, because drillers are drilling less, they are not recycling and reusing produced water (water that comes out of the hole from the depths for years after the well is drilled). What do drillers do with produced water they don’t want to use for fracking and drilling more wells? They either have to haul it to an injection well, or haul it to a facility like Fairmont’s for recycling. Fairmont has just secured a $90 million line of credit to build a new wastewater processing plant in southwest PA. Demand is strong…
    Read More “Fairmont Brine Gets $90M to Build New Wastewater Recycling Plant”

  • Electrical Generation | Industrywide Issues | Pipelines

    More on Laclede Plan to Tap Marc/Utica Gas for Midwest Powergen

    April 19, 2016April 19, 2016

    Laclede GroupIn February MDN brought you the good news that Laclede Group (St. Louis-based natural gas utility) wants to build a 60-mile pipeline from St. Louis through southwest Illinois and connect to the Rockies Express (REX) and Panhandle Eastern Pipeline to grab low-cost Marcellus/Utica Shale gas for Midwestern markets (see New Midwest Pipeline to Tap REX’s Marcellus/Utica Gas). Laclede wants to use it not only for utility customers, but to serve new natgas-fired electric plants being planned for the region. We spotted an article that elucidates more on the power gen angle of the proposed new Laclede pipeline, which could become an important new market for Marcellus/Utica gas…
    Read More “More on Laclede Plan to Tap Marc/Utica Gas for Midwest Powergen”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues

    United Church of Christ Worships Mother Earth This Sunday

    April 19, 2016April 19, 2016

    Keep it in the GroundWe find nothing (NOTHING!) more repugnant than so-called Christians who used to worship the One True God who have forsaken their vows and instead now worship Mother Earth. They worship the creation instead of the Creator. Such is the case with a group of pastors from the United Church of Christ who will, this coming Sunday, preach sermons that paint fossil fuels as evil and should be “kept in the ground.” We urge parishioners at those churches to stay home this Sunday. In fact, all UCC members should just stay home this Sunday. Perhaps empty offering plates across the denomination will get the attention of the leadership and encourage them to forget this nonsense…
    Read More “United Church of Christ Worships Mother Earth This Sunday”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Apr 19, 2016

    April 19, 2016April 19, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Atlantic Coast Pipeline responds to FERC, now in wait mode; Business Council urges Gov. Cuomo to approve Constitution Pipeline; OH Dem wants to clamp down on injection wells with new law; the future of American shale; the Caligula of commodities; fossil fuel value not affected by so-called climate change; corrupt state prosecutors have been colluding with fractivists; Crazy Bernie’s energy policy – import more oil; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Apr 19, 2016”

  • Electrical Generation | Industrywide Issues

    NTE Energy Developing 3 NatGas-Fired Electric Plants in CT/NC/OH

    April 18, 2016April 18, 2016

    NTE EnergyNTE Energy, headquartered in St. Augustine, Florida, builds new natural gas-fired electric plants. Currently the company is building plants in Southwest Ohio, West Texas and North Carolina. Last Friday NTE announced three more new natgas-fired power plant projects–one in Connecticut, one in North Carolina and one in Ohio. There’s no doubt these plants will use shale gas from the Marcellus/Utica to power them–which is good news for producers in the northeast. Here’s the details from NTE…
    Read More “NTE Energy Developing 3 NatGas-Fired Electric Plants in CT/NC/OH”

  • Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Pennsylvania | Range Resources Corp | Statewide PA

    Radical Groups Claim Range Resources Avoids Rich Neighborhoods

    April 18, 2016April 18, 2016

    Range ResourcesThree radical environmental groups well-known for lying about fracking and the oil and gas industry in Pennsylvania–The Center for Coalfield Justice, the Pennsylvania Chapter of the Sierra Club and the Clean Air Council–are accusing Range Resources of intentionally avoiding “wealthy” neighborhoods and instead targeting low-income neighborhoods when drilling wells. The three groups make the claim that Terry Bossert, Range VP for legislative and regulatory affairs, told a meeting of the Pennsylvania Bar Institute that his company company tries to avoid siting shale gas wells near “big houses” where residents might have the financial resources to challenge drilling. Reps from the radical groups claim they heard him say this at the meeting. Range has responded that the comment was a joke–made in jest. The radical groups say it certainly didn’t seem that way to members of the audience. If the comment was not made in jest, it’s deeply troubling and, frankly, boneheaded. The problem is, the groups doing the accusing have lied so much about fracking and frackers, you simply can’t believe what they say. Is this a case of yet another ginned up lie by Big Green groups, or a case of the “boy who cried wolf” by those groups?…
    Read More “Radical Groups Claim Range Resources Avoids Rich Neighborhoods”

  • CONSOL Energy | Energy Companies | Energy Services | Ethane | Industrywide Issues | Processing Plants | PTT Global | Shell

    CONSOL Energy CEO Predicts 2 Ethane Crackers Coming

    April 18, 2016April 18, 2016
    Nick DeIuliis
    Nick DeIuliis – CEO CONSOL Energy

    Looks like MDN is not the only source that believes both the Shell and PTT Global ethane crackers will (eventually) get built. After all, Shell has spent half a billion (out of $2-$3 billion) on their PA-based project already (see Shell has Spent “Half a Billion Dollars” on PA Cracker Already!). They’re 20-25% of the way there! Doesn’t take a genius to connect the dots with that project. PTT Global has purchased land, is leveling the site and paid for design work on their OH-based site, spending upward of $200 million (see our PTT stories here). Now, none other than Nick DeIuliis, CEO of CONSOL Energy, is predicting both the Shell and PTT Global ethane crackers will get built…
    Read More “CONSOL Energy CEO Predicts 2 Ethane Crackers Coming”

  • Industrywide Issues | Litigation | Pennsylvania | Regulation | Statewide PA

    Judge Won’t Grant Request to Stop Adoption of New PA Drilling Regs

    April 18, 2016April 18, 2016

    lawsuitIn March MDN told you about a lawsuit filed by the Pennsylvania Independent Petroleum Producers Association (PIPP) against implementation of new rules and changes to existing rules known as Chapters 78 & 78a (see PA Conventional Drillers File Lawsuit to Stop New DEP Regulations). PIPP objects to conventional drillers being subjected to many of the same rules as unconventional (shale) drillers. PIPP says the two types of drilling are apples and oranges and to make small drillers jump through the same hoops as big shale drillers will literally eliminate small drillers from the Keystone State–making it unprofitable to continue drilling. So PIPP, on behalf of those drillers, sued to stop the new regulations. Unfortunately (for PIPP and all drillers) a judge ruled against PIPP and will allow the rules to move forward in the process to be adopted…
    Read More “Judge Won’t Grant Request to Stop Adoption of New PA Drilling Regs”

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