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Marcellus Drilling News
  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation | Medina County | Ohio | Portage County | Regulation | Statewide OH

    OH Antis Circulate Petitions for Bans Already Tossed by Courts

    March 22, 2016March 22, 2016

    The Pennsylvania-based Community Environmental Legal Defense Fund (CELDF) is a radical environmental group backed with Big Green money that exists to fleece local towns into adopting bans on fracking and pipelines. Last year we carried an expose of the group (see PA’s CELDF Unmasked as Troublemakers in Ohio Utica Shale). Much of their community agitating work is done in Ohio. Time after time their so-called “community bill of rights” initiatives are shot down by Ohio courts. The latest instance (and there have been many) was earlier this month when the U.S. 8th District Court of Appeals overturned the CELDF-created bill of rights law passed in the Cleveland suburb of Broadview Heights (see Mad Moms Hopping Mad Over Court Decision re Broadview Heights, OH). You would think towns would learn that a) these initiatives invariably are challenged and thrown out by the courts, and b) if the initiatives interfere with a local business that sues the town, the CELDF is nowhere to be found (see Anti Group CELDF Won’t Help Grant Twp Pay $1M Judgement). But there’s plenty of insane people–like those circulating petitions in Medina and Portage counties to get a CELDF-backed bill of rights initiative on the local ballot. The very same initiative already shot down by Ohio courts in other locations…
    Read More “OH Antis Circulate Petitions for Bans Already Tossed by Courts”

  • Industrywide Issues | Pipelines | Regulation

    Massive Power Grab Proposed by Obama DOT: Regulate Gathering Lines

    March 22, 2016March 22, 2016

    Last week the Obama Dept. of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) released a breathtaking expansion of federal power over the individual states. It is yet another in a long line of power grabs by the federal government under the reign of Our Dear Leader. The PHMSA is charged with overseeing the safety of the nation’s interstate pipelines. Until now, local gathering pipelines–the small lines that run to individual oil and gas wells–has been properly regulated by the individual states in which they reside. In some cases states, like Pennsylvania, don’t regulate gathering lines–a situation the state is attempting to rectify (see NEPA State Senator Introduces Bill to Regulate Rural Pipelines). Regardless–it’s not the proper role of the federal government to usurp a state’s rights to regulate the oil and gas industry, which is what this latest move attempts to do. Last week the PHMSA released a draft of new regulations (i.e. unlegislated laws) to regulate natural gas pipelines–both interstate and local, gathering lines (full copy of the 549-page draft in included below). According to the legal beagles at top oil and gas firm Babst Calland, “PHMSA is proposing to change the definition of an onshore gas gathering line, to partially repeal the longstanding exemption for rural gathering lines, and to extend the federal reporting requirements to all gas gathering lines (whether regulated or not).” Our opinion: whether they say they are regulating gathering lines or not, by requiring reporting, the PHMSA is defacto regulating those lines…
    Read More “Massive Power Grab Proposed by Obama DOT: Regulate Gathering Lines”

  • Energy Companies | Rice Energy

    Single Investor Buys ~$56M of Rice Energy Stock in 1Q16

    March 22, 2016March 22, 2016

    Investors constantly sink money into, and pull money out of, oil and gas companies. Managers of those companies also buy and sell stock in their own companies. From time to time we highlight such cases–but lately, we only highlight it if it’s a really big investment. This is one of those really big investments. Billionaire Steven Cohen, founder of Point72 Asset Management, has snapped up 5.6 million shares of Rice Energy during the first almost three months of this year–so far. Rice’s stock currently trades at $12.69 per share. Over the past three months the price per share has varied from a low of $8.48/share to a high of $13.08/share. Let’s pick a number and say Cohen paid an average of $10 per share for his 5.6 million shares. That means he ponied up something on the order of $56 million–a sizable chunk of ownership in the company…
    Read More “Single Investor Buys ~$56M of Rice Energy Stock in 1Q16”

  • Dominion Energy | Energy Services | Industrywide Issues | Pipelines | Regulation | Transco | Williams

    Dominion Files Application to Move Marcellus Gas to Charleston, SC

    March 22, 2016March 22, 2016

    According to their own documents and timelines, Dominion Carolina Gas Transmission is behind a few months, but they finally just filed an official application with the Federal Energy Regulatory Commission (FERC) for a 55-mile pipeline project called the Transco to Charleston Project. As the name implies, it will be a short pipeline to connect the Transco pipeline, which is in the process of reversing flows to bring Marcellus and Utica Shale gas south, to send that gas to the Charleston, SC area. The projected in-service date is November 2017…
    Read More “Dominion Files Application to Move Marcellus Gas to Charleston, SC”

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

    2 NEPA Members of Pipeline Task Force Want to Know, What’s Next?

    March 22, 2016March 22, 2016

    In May 2015 Pennsylvania Gov. Tom Wolf and his underling Dept. of Environmental Protection (DEP) Secretary John Quigley created a “Task Force on Pipeline Infrastructure Development” (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). The stated purpose of the group was “to identify best practices for pipeline siting, permitting and safety.” We won’t recount all of the twists and turns–of how the Task Force was packed with government employees beholden to Wolf, etc. Along the way antis tried to protest and derail the meetings held by the Task Force (see PA DEP Sec. Quigley Calls Pipeline Protesters “Badly Misinformed”). The final meeting was held and the final report was released all 658 pages of it with 184 recommendations (see PA Pipeline Task Force Report: 658 Pages, 184 “Recommendations”). Two members of the task force from northeast PA are now asking the question, “What happens next?” We have the answer: NOTHING…
    Read More “2 NEPA Members of Pipeline Task Force Want to Know, What’s Next?”

  • Industrywide Issues | M&A

    Consulting Firm IHS Merges with UK Firm to Avoid High US Taxes

    March 22, 2016March 22, 2016

    When a US company like IHS, one of the biggest and best data analytics and consulting firms in the oil and gas (among other) spaces merges itself with a foreign company–in this case a UK company–to avoid paying higher taxes in the US, you know something is wrong. Yesterday IHS announced they will merge with the UK-based Markit, another data analytics firm. We love the Brits and we’re sure Markit is a fine company–but it distresses us to see companies moving offshore because of Obama’s tax policies. But there you have it–that’s just what has happened. It’s called an “inversion deal”–where a U.S. company combines with a foreign company and moves operations overseas to avoid higher tax liabilities in the U.S. The $13 billion deal involves no cash–only swapping ownership in each other’s stock. The combined company will have revenues of $3.3 billion…
    Read More “Consulting Firm IHS Merges with UK Firm to Avoid High US Taxes”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Mar 22, 2016

    March 22, 2016March 22, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Southwestern Energy’s outlook for 2016; PA’s rig count stablizes; what the media got wrong about Dimock verdict; MA AG fights pipeline in CT; Duke Energy turning pig poop into electricity; US rig count hits all-time low; more on DUCs; Schlumberger says E&Ps hammering companies like his; US energy workers’ ride to the bottom; and more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Mar 22, 2016”

  • Anti-Drilling/Fossil Fuel | Fayette County | Industrywide Issues | Litigation | Regulation | Wastewater | West Virginia

    Fayette WV Commissioners Change Ban to Focus on Injection Wells

    March 21, 2016March 21, 2016

    Fayette County WVThe Democrat commissioners of Fayette County, WV are scrambling to try and keep their jobs after enacting what is turning out to be a disastrous ordinance to ban all fracking, injection wells, drilling, etc. In January, three liberal Democrat county commissioners from Fayette County, WV, with the backing and help of the radical WV Mountain Party, voted to ban injection wells in the county (see WV County Officially Bans Injection Wells; Children Brainwashed). In fact, the ban is intentionally written so broadly it will also ban the operation of more than 500 vertical oil and gas wells in the county. The next day EQT sued to overturn the ban (see EQT Sues WV County that Banned Injection Wells, Seeks Injunction). Not long after, a U.S. District Court judge slapped an injunction on the county preventing them from enforcing the ban at least until a hearing scheduled for later this month (see Judge Stops WV County from Enforcing Injection Well Ban, For Now). One of the chief architects of the ban, from the Mountain Party, admits the ban is intended to stop all oil and gas activity in the county (see Anti Admits Fayette County, WV Ban Aims to Shut Down All O&G Wells). Facing a lawsuit they will lose, the commissioners have backed away from the position of banning everything to do with drilling in the county. They’ve revised the proposed ban regulation as a tactic to avoid losing their court case–but everyone sees through this latest pathetic attempt. Sensing they won’t win their court case to ban drilling as well as injection wells, they’ve opted to toss the drilling part and go for just banning injection wells. We hope the voters and taxpayers in Fayette County vote the three commissioners out at the next election for their anti-drilling malfeasance…
    Read More “Fayette WV Commissioners Change Ban to Focus on Injection Wells”

  • American Energy Partners | Energy Companies

    McClendon’s Biggest Backer Backed Away the Day Before Car Crash

    March 21, 2016March 21, 2016

    Details continue to drib and drab out related following the death of Aubrey McClendon on March 2nd (see Stunned: Former Chesapeake CEO Aubrey McClendon Dies in Car Crash). We previously told you that one of Aubrey’s biggest backers, Energy & Minerals Group (EMG), was about to hang Aubrey out to dry (see More Info Comes to Light About McClendon’s Last Days/Last Moments). We now have more details about EMG’s abandonment of McClendon the day before his death. We also have a comment from an analyst who says McClendon’s company, American Energy Partners, will likely declare bankruptcy within a year. They just aren’t producing enough cash to pay all of the debts…
    Read More “McClendon’s Biggest Backer Backed Away the Day Before Car Crash”

  • Industrywide Issues | Jobs | Regulation

    DOL Continues to Harass NE Drilling Industry for “Back Wages”

    March 21, 2016March 21, 2016

    The Obama Dept. of Labor’s (DOL) harassment of oil and gas-related companies, particularly in the Marcellus/Utica region, goes back years. The DOL’s favorite tactic is to use the full force of the federal government to accuse companies of shorting employees out of wages for overtime (see Feds Slap Appalachian Oilfield Svcs with $129,802 for Back Wages; DOL Action: Several Marcellus Drillers Pay $4.5M in Back Wages; Labor Dept. Unfairly Targets Marcellus Industry in SWPA & WV; and Halliburton Pays $18M in Back Wages, Some Going to PA Workers). The DOL continues their long campaign of harassment. Last week the DOL issued a press release stating they’ve turned up more instances of back wages due in four companies, two of which have major operations in the Marcellus/Utica region: Frank’s International and Stream-Flo USA…
    Read More “DOL Continues to Harass NE Drilling Industry for “Back Wages””

  • Energy Companies | Southwestern Energy

    Southwestern Energy Pays Preferred Stock Dividends w/Common Stock

    March 21, 2016March 21, 2016

    Northeast drilling companies like Southwestern Energy are using creative strategies to stay afloat until oil and gas prices increase again. One of the tactics has been to lay off thousands of workers (see Southwestern Energy Cuts Workforce 44%, 200 Marcellus Jobs Gone). Another strategy is to cut spending and suspend drilling altogether (see Southwestern Cuts 2016 Spending 80%, Idles Marcellus Rigs (for Now)). Yet another is to borrow new money to pay off previously borrowed money (see Southwestern Energy Borrows $750M to Pay Off Other Borrowed Money). Southwestern continues with the creative financing with a tactic we’ve not seen before among northeast drillers: Pay dividends for one class of stock (preferred) by giving dividend-holders shares in another class of stock (common)…
    Read More “Southwestern Energy Pays Preferred Stock Dividends w/Common Stock”

  • Atlas Energy | Energy Companies

    Atlas Energy “Penny Stocks” Begin Trading Today on OTCQX

    March 21, 2016March 21, 2016

    MDN previously told you that the Philadelphia-based Atlas Energy, which sold off the majority of its Marcellus assets in two different tranches for $12 billion, has fallen on hard times–at least its stock price has. The New York Stock Exchange told the company in December that its stock was in danger of being de-listed from the mighty NYSE (see Atlas Energy Luck Run Out? NYSE Threatens Company with De-Listing). On Friday the company seems to have capitulated and given up on trying to boost the stock price to above $1 per share (the minimum required to be listed on the NYSE). Atlas said that regardless of what happens with the NYSE, as of today, March 21, company shares will begin trading on the Over the Counter stock exchange, called OTCQX. That is, Atlas shares have become penny stocks…
    Read More “Atlas Energy “Penny Stocks” Begin Trading Today on OTCQX”

  • Energy Companies | Ultra Petroleum

    Ultra Petroleum Threatened with NYSE De-listing

    March 21, 2016March 21, 2016

    It’s been a while since we’ve written anything about Ultra Petroleum. Ultra is an independent exploration and production (E&P) company focused on drilling in the Green River Basin of Wyoming–in the Pinedale and Jonah Fields. In addition, Ultra is currently drilling for oil in the Uinta Basin/Three Rivers area in Utah. However, our interest in Ultra is because they maintain a position in the Pennsylvania Marcellus shale with leases on 184,000 gross (91,000 net) acres. They aren’t currently drilling on their acreage, but if prices change, they likely will. The news we bring you about Ultra is news we’ve brought you about other companies, like Atlas Energy (see today’s story on Atlas). And that news is that the New York Stock Exchange has threatened Ultra with de-listing its stock if the price is not boosted to over $1 per share…
    Read More “Ultra Petroleum Threatened with NYSE De-listing”

  • Energy Companies | Warren Resources

    Warren Resources 2015: Lost $620M, Most of it a Paper Loss

    March 21, 2016March 21, 2016

    As MDN pointed out in February, Warren Resources is on the cusp of bankruptcy (see Warren Resources: Potential Bankruptcy, No Drilling in 2016). They are a small driller–at least in the Marcellus–having drilled two Marcellus wells last year. Earlier this month we brought you the news that the NASDAQ Stock Exchange is threatening to stop trading the company’s stock (see Pretty in Pink? Warren Resources Put on Notice for Stock Delisting). Last week Warren issued its fourth quarter and full year 2015 update. It’s fairly short and to the point: last year Warren lost $620 million. Most of that loss was a paper loss–$578M for impairments. Unlike other drillers, Warren doesn’t include a copy of their financial spreadsheets with their announcement. They make you go fishing on the Securities and Exchange Commission website to find their financial information. It appears they’re making it intentionally difficult to easily obtain the information…
    Read More “Warren Resources 2015: Lost $620M, Most of it a Paper Loss”

  • Energy Companies | Rice Energy

    New Board Member for Rice Midstream + Bobby Vagt Flashback

    March 21, 2016March 21, 2016

    Rice Midstream, the pipeline subsidiary of drilling company Rice Energy, has just added a new board member–Stephanie C. Hildebrandt. Ms. Hildebrandt is a lawyer with international law firm Norton Rose Fulbright US LLP. Normally such an announcement is not something we highlight here on MDN–except we noticed a comment by Rice Midstream’s (and Rice Energy’s) chairman about the appointment. And seeing the name of Rice Midstream’s chairman–Bobby Vagt–reminded us once again of how Bobby is getting the last laugh over Teresa Heinz Kerry…
    Read More “New Board Member for Rice Midstream + Bobby Vagt Flashback”

  • Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation

    Canadian Company Fights Back Against Green Bully Greenpeace

    March 21, 2016March 21, 2016

    One of the favorite ways Big Green groups bully companies and municipalities is by using lawsuits against them. We see it all the time in the oil and gas industry. Example: THE Delaware Riverkeeper and Clean Air Council–both based in the Philadelphia area–filed a lawsuit against the Town of Middlesex in Butler County, PA (see ACLU Bullies Threaten Butler County Landowners over Martian Lawsuit). Butler County is on the opposite side of the state from where Riverkeeper and the Clean Air Council are supposed to be operating. Such is how they work. Another favorite tactic is to launch smear campaigns against the industry. One of the most radical Big Green groups is Greenpeace. They’re famous for smear campaigns–full of lies. They tried to run such a campaign against a Canadian forestry company–and the company fought back, in court. And now the court will make Greenpeace open up their records for close scrutiny. Cockroaches like Greenpeace can’t stand the light of day shining into their activities. They’re worried. And that got us to thinking. Why northeast drillers and midstream companies use the example of this forestry company as their model to fire back at THE Delaware Riverkeeper, Catskill Mountainkeeper, Food & Water Watch, and a plethora of other odious groups? Let’s force them to open up their books and expose them for the colluding frauds they are…
    Read More “Canadian Company Fights Back Against Green Bully Greenpeace”

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