Marcellus Drilling News

Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Quigley Keeps Secret Key Part of New Drilling Regs
February 8, 2016February 8, 2016

There is still a chance, beyond a lawsuit, that onerous new oil and gas regulations proposed by Pennsylvania Sec. John Quigley will not be adopted as they have been promulgated. We frankly thought it was a done deal–just get them printed in the Pennsylvania Register, wait 45 days and voila–new laws are born, without the involvement of the state legislature. But the state legislature DOES play a role after all. The House and Senate Environmental Resources and Energy committees will both take a look and approve, disapprove or take no action on the new regs that separate existing regulations, referred to as Chapter 78, into two sets of regulations, 78 and 78a (for conventional and unconventional, or shale). However, Gov. Wolf seems to have the last say in the matter and he’ll likely sign off on the new rules regardless of what the people, via their representatives in the legislature, want. That’s how Dems govern–against the will of the people. Dictatorial. Here’s the thing. Sec. Quigley is intentionally withholding 29 new forms that the industry will have to fill out as part of the new regulations. Legislators are asking how, in any sense of the word, it is fair to vote on something when you haven’t seen the full language, including these 29 forms? Quigley’s action is (in our opinion) illegal–disclosure of the forms is required under PA’s Right-to-Know law. This is yet another abuse of power by PennFuture PA DEP Sec. Quigley…
Read More “PA DEP Sec. Quigley Keeps Secret Key Part of New Drilling Regs”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County | Williams

Actor James Cromwell Admits He’s Clueless, Fights Pipeline Anyway
February 8, 2016February 8, 2016

James Cromwell as Zefram Cochrane

Hollywood stars are some of the dumbest people on the planet. We’ve seen it again and again. They glom onto a “cause” either to boost their own sagging careers (get their name into the press again), or because they have an otherwise empty and meaningless life, or because–who the heck knows why? They certainly aren’t experts–although they pretend to be. Susan Sarandon and Yoko Ono joined the anti-fracking movement and rode a fossil-fuel-belching bus from New York City up to Susquehanna County, PA two years ago to “tour” the fracking fields of northeastern PA (see Looney Toons Anti-Fracking Celebrities Visit Montrose, PA). Another Hollywood nutjob is James Cromwell, who played Zefram Cochrane (mythical creator of the warp engine) in the 1996 movie Star Trek: First Contact (one of our favs). Cromwell, a New York City resident, owns a home in upstate, in Orange County. A natural gas-fired power plant is scheduled to be built near his summer home and he’s been protesting, to the point of getting himself arrested in December (see Actor James Cromwell Arrested Protesting NY Power Plant Site). Cromwell has been unsuccessful in stopping progress on the power plant. Apparently he’s in a down cycle right now with his career, and he was reading the newspapers and noticed a story we also noticed (and highlighted) last Friday–an anti-drilling family trying to stop a pipeline from clipping a few maple trees on their property (see Maple Syrup Farm in Path of PA Pipeline, Antis Make Most of It). Cromwell decided to take a Friday drive to visit the five acre plot and lend his name to their cause. Thing is, he admitted he’s essentially clueless about the whole thing–but since it’s a natgas pipeline, and he now hates natgas, what the heck. It only took him maybe two hours to drive from his upstate home to Susquehanna County to pay some fellow antis a visit…
Read More “Actor James Cromwell Admits He’s Clueless, Fights Pipeline Anyway”
Blue Ridge Mtn Res/Magnum Hunter | Chesapeake Energy | Chevron | CNX Resources | CONSOL Energy | Coterra Energy (Cabot O&G) | Eclipse Resources | Energy Companies | EQT Corp | EXCO Resources | Noble Energy | Range Resources Corp | Seneca Resources | Southwestern Energy

The Dismal Outlook for Marcellus/Utica Drilling in 2016
February 8, 2016February 8, 2016

Yes, it’s bad out there and getting worse–at least in the short term–when it comes to drilling in the Marcellus and Utica Shale. Several major drillers in the northeast have announced cuts–big cuts–and those cuts will impact not only the employees at those companies, but also the many supply chain companies that provide goods and services to them. There were a paltry 19 rigs operating in Pennsylvania last Friday. In January 2014, just two years ago, there were 55 active rigs working in the PA Marcellus. Here’s a recap of who’s cutting how much in 2016 (and perhaps beyond)…
Read More “The Dismal Outlook for Marcellus/Utica Drilling in 2016”
Pennsylvania | Statewide PA

Insanity: O&G People Donating to Katie McGinty Campaign
February 8, 2016February 8, 2016

Here’s our definition of insanity: You work for an oil or gas company in the Marcellus/Utica region, and you donate money to the U.S. Senate campaign of Katie McGinty, formerly the chief of staff for PA Gov. Tom Wolf. McGinty once served as Secretary of the PA Dept. of Environmental Protection under then Gov. Ed “fast Eddie” Rendell. She is an anti-driller–a radical environmentalist. So why would you give money you earned in the oil and gas industry to the campaign of someone who wants to destroy your industry? That’s what we call insane. Here’s who has done it…
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CNX Resources | CONSOL Energy | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

CONSOL Energy 2015: Reserves Up 16%, Brought 113 Wells Online
February 8, 2016February 8, 2016

CONSOL Energy released details about their proved reserves and about their drilling program from 2015 last Friday. Proved reserves are up 16% for the year. In 2015 in the Marcellus, CONSOL drilled and brought online 81 wells. In the Utica, CONSOL drilled and brought online 32 wells. Below are the details…
Read More “CONSOL Energy 2015: Reserves Up 16%, Brought 113 Wells Online”
Energy Companies | EQT Corp | Industrywide Issues | Reserves (Proved and Unproved)

EQT Proved Developed Reserves Jump 30% in 2015
February 8, 2016February 8, 2016

It’s the time of year when drillers boast about 2015 numbers–specifically how much oil and gas is down there. It’s called “proved reserves” (for a quick tutorial, see Defining O&G Reserves: Proved, Recoverable & In-Place). Last week EQT disclosed that their proved developed reserves jumped up 30% in 2015 over 2014. Below is some interesting information on EQT’s reserves (proved and otherwise) not only for the Marcellus, but for the Utica and Upper Devonian too…
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CNG/LNG | Exporting | Industrywide Issues | Regulation

Bear Head LNG Exports Get Final DOE Approval – Good for Marcellus
February 8, 2016March 29, 2016

A Canadian liquefied natural gas (LNG) export facility planned for Nova Scotia received final authorization from the U.S. Dept. of Energy (DOE) to export LNG to countries that do not have free trade agreements with the United States. Bear Head LNG, a $2.2 billion project proposed by Australian company Liquefied Natural Gas Limited (LNGL) received Canadian approval a year ago (see Canada’s 1st LNG Export Facility Gets Green Light; Marcellus Gas?). The project then received DOE approval to export to free trade agreement countries in July of 2015 (see 2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas). Now the project is approved for non-free trade agreement countries. However, as we said in July, there are still important hurdles to jump before the project gets built: (1) the Maritimes & Northeast pipeline has to get FERC permission to reverse its flow, which will send Marcellus and Utica gas northward; (2) the gas has to get to the Maritimes & Northeast pipeline in the first place via new pipelines from either Kinder Morgan or Spectra Energy (currently a battle royale); and (3) the price of oil has to rise to make the whole thing economical, since LNG is so closely tied to the price of oil. We don’t see that happening until later this year, at the earliest. Here’s the exciting announcement that regulation-wise the project is cleared for take-off…
Read More “Bear Head LNG Exports Get Final DOE Approval – Good for Marcellus”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines

Pipelines the New Battle Against Fracking in the Northeast
February 8, 2016February 8, 2016

The latest focus of the war, and it IS a war, over the use of fossil fuels, focuses on pipelines. Anti-fossil fuel radicals admit their hatred of fossil fuels is driving them to try and (1) delay and (2) deny permits for pipelines to get built. Particularly in the northeast. Emboldened by their success in pressuring Barack Hussein Obama to deny a permit for the Keystone XL pipeline, antis in the northeast are working overtime to try and scuttle a number of natural gas pipeline projects. One of their favorite targets is the Federal Energy Regulatory Commission. Antis are slowing down regulatory approvals by filing thousands of comments, registering as “intervenors,” and by targeting FERC itself, encouraging investigations into the agency. Typical bullying behavior that we’ve come to expect from them. The fossil fuel haters strategy is laid out in the pages of the Washington Examiner…
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Air Quality | Industrywide Issues | Litigation | Ohio | Regulation | Statewide OH | Statewide WV | West Virginia

29 States Ask Supreme Court to Stop Obama Clean Power Plan ASAP
February 8, 2016February 8, 2016

On January 26, 2016, 29 states and state agencies, including Ohio and West Virgina, filed an application with the U.S. Supreme Court seeking an immediate stay of President Obama’s Clean Power Plan (CPP). A week before the D.C. Circuit Court of Appeals denied such a stay, so the states are taking it to the final authority in such matters. The states are begging the court for a stay because the CPP will do “irreparable harm” if it is allowed to be implemented by the dictatorial Obama Administration. For background on how this horrible plan will damage natural gas and our economy in general, see 9 Fatal Flaws with Obama EPA Clean Power Plan. Energy law firm Baker Hostetler LLP is the law firm of record for the State of Oklahoma and Oklahoma Department of Environmental Quality in this case. Below is an update from Baker Hostetler on the Supreme Court filing…
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About MDN | Calendar

Calendar of Events for Feb 8 – May 7 (90 Days)
February 8, 2016February 8, 2016

Below are upcoming events for the next three months (90 days). To see the full list of future events, visit this page: //marcellusdrilling.com/calendar/.

NOTE: To have an item included, please email it to: calendar@marcellusdrilling.com.
Read More “Calendar of Events for Feb 8 – May 7 (90 Days)”
Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Feb 8, 2016
February 8, 2016February 8, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Enough time already on Constitution Pipeline; CONSOL sets natgas production record; law firm chasing NEXUS landowners, instead of ambulances; Wolf to submit new budget with severance tax, again; natural gas facts & fiction; four shale plays quit drilling; Obama’s $10/barrel tax on oil; Pride and Prejudice and Zombie oil companies; Boone Pickens gets out of oil altogether; Fear the Bern; and more!
Read More “Marcellus & Utica Shale Story Links: Mon, Feb 8, 2016”
Beaver County | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Pipelines | Processing Plants | Shell

Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant
February 5, 2016February 5, 2016

MDN received an exclusive tip from a trusted source (who is also an MDN subscriber) yesterday about the Shell ethane cracker plant in Monaca (Beaver County), PA. Our source, who lives in Beaver County, told us he was approached by a Shell landman about signing a pipeline right-of-way through his property to build a pipeline to the plant. We have an account of our source’s conversation with the landman, and some key information the landman let slip about Shell’s plans for two such pipelines…
Read More “Exclusive: Shell Leasing Land for 2 Pipelines to PA Cracker Plant”
Energy Companies | EQT Corp | Industrywide Issues | Pennsylvania | Taxation | Washington County

EQT 20-Well Pad on the Way in Washington County, PA? Maybe!
February 5, 2016February 5, 2016

A recent meeting of the Nottingham Township (Washington County), PA Board of Supervisors proved to be a font of useful information about Marcellus drilling in the town, both past and future. Nottingham currently has three drilling sites, two of which are already active and one future. The two active sites have 11 and 12 wells either drilled or planned to be drilled. According to a local fractivist, the third site, which is planned by EQT, will have 20 wells on it. EQT says the eventual number of wells has not yet been determined (but they didn’t rule out 20 wells). Nottingham shares a border with Peters Township. Peters, you may recall, was one of the seven selfish townships that sued to overturn portions of the Act 13 law dealing with local zoning of oil and gas projects, eventually winning at the PA Supreme Court level (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). Nottingham has active drilling within its borders. Peters has still not allowed any drilling within its borders. Nottingham got $70,000 in impact fee money last year. Peters got $360,000 in impact fee money. What’s up with that?…
Read More “EQT 20-Well Pad on the Way in Washington County, PA? Maybe!”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Susquehanna County | Williams

Maple Syrup Farm in Path of PA Pipeline, Antis Make Most of It
February 5, 2016February 5, 2016

We’ve often said that pipelines should not be allowed to use eminent domain. But what about when there’s no other choice? What if there are one or two holdout landowners whose land over which a pipeline must travel if it is to get built at all? In those cases, pipeline companies are left with no other choice but to invoke eminent domain. Williams, in planning and now beginning to build the Constitution Pipeline from Susquehanna County, PA into New York to Schoharie County, NY, has bent over backwards, forwards, and sideways to accommodate landowners along the proposed route. In fact Williams has changed more than half of the route in response to requests from landowners. Williams is, today (Feb. 5), beginning to selectively cut down trees along the route–in Pennsylvania for now (New York is next). There’s one small portion of the route Williams wanted to avoid but could not–running through a stand of maple trees. The owners of those trees have aligned themselves with some of the most radical of radical anti-drillers to oppose the pipeline and they are now running a public relations campaign to attempt to try and create a public uproar. We at MDN do NOT sympathize with them–for a number of reasons…
Read More “Maple Syrup Farm in Path of PA Pipeline, Antis Make Most of It”
Accidents | Belmont County | Industrywide Issues | Marshall County | Ohio | Trucking | West Virginia | Wetzel County

3 Marcellus/Utica Truck Accidents in Ohio Valley – in Past 7 Days
February 5, 2016February 5, 2016

With Marcellus and Utica Shale drilling comes truck traffic–a lot of truck traffic. Which is great if you’re a driver who needs work, or a trucking company who wants to chase the business. But not so great if you live in the area where trucks are jamming up the roadways. Another downside to the truck traffic is the occasional accident. In the past week there have been three truck accidents in the Ohio Valley area–in Wetzel and Marshall counties in WV, and Belmont Count in OH. Two of the three required a hazmat team to deploy. Here’s the details…
Read More “3 Marcellus/Utica Truck Accidents in Ohio Valley – in Past 7 Days”
Energy Companies | EQT Corp | Utica Shale

EQT is in Love with the Utica – Comments from Analyst Call
February 5, 2016February 5, 2016

On yesterday’s fourth quarter and full year 2015 analyst phone call, EQT’s upper management positively gushed with affection for the Utica Shale. Steve Schlotterbeck, president of exploration and production for EQT, said, “…we expect the Utica returns in the core area will be competitive with or better than the core Marcellus, and we will work on a plan to include Utica in our future development plans.” Meaning what? EQT will drill fewer Marcellus and more Utica wells? That seems to be the implication. Here’s more of what Steve had to say about the Utica on yesterday’s call…
Read More “EQT is in Love with the Utica – Comments from Analyst Call”