Marcellus Drilling News

Energy Services | Fairmount Santrol | Industrywide Issues | Ohio | Regulation | Sand/Proppant | Statewide OH

SEC Investigates OH Frac Sand Company for Allegedly Paying Bribes
April 1, 2016April 1, 2016

One of the largest frac sand providers for shale drillers in the U.S. is Fairmount Santrol. Based in Ohio, Fairmount sells proppants (sand and other substances used in oil and gas drilling) around the world. Apparently Fairmount’s dealings in another country is what has landed them in hot water with the U.S. Securities and Exchange Commission. The SEC is investigating Fairmount under the Foreign Corrupt Practices Act. The company is accused of paying bribes to foreign officials for help in getting business. We’re not excusing such behavior, but come on, really? You don’t think such things don’t go on a million times a day in every industry from oil & gas to dog food?? Sounds more like a fossil fuel industry witch hunt to us than a legitimate investigation…
Read More “SEC Investigates OH Frac Sand Company for Allegedly Paying Bribes”
Electrical Generation | Industrywide Issues | Ohio | Regulation | Statewide OH

Cheap NatGas Blamed for Higher Electric Rates Coming in Ohio
April 1, 2016April 1, 2016

The Public Utilities Commission of Ohio (PUCO) approved a plan yesterday that is deeply complex and has us scratching our heads. From the press accounts we’ve read, we would summarize like this: The plan allows American Electric Power Co. and FirstEnergy Corp. to operate coal plants and a nuclear plant that currently (and for the foreseeable future) are uneconomical. The electricity produced by the plants can’t compete with electricity being produced by new natural gas-powered electric plants. But PUCO believes it is in the public interest to keep the old coal/nuclear plants running–so electric resellers will be forced to buy from the old plants at a high rate, and sell that electricity on the open market at a lower rate–and ratepayers (Ohioans) will pick up the difference in the price. Ohioans will subsidize the old plants. Because it’s in the public interest. Somehow. Even though the average Ohioan will pay $100-$130 more for the same electricity. Yes, it’s far more complex than that–there are provisions for more renewable energy sources, etc. baked into the plan. But what it boils down to is subsidizing old forms of energy that can’t compete with natgas…
Read More “Cheap NatGas Blamed for Higher Electric Rates Coming in Ohio”
Chesapeake Energy | Energy Companies

Chesapeake’s Doug Lawler Gave Himself a Raise After Firing 1,500+
April 1, 2016April 1, 2016

This is rich. We spotted a reference in a Seeking Alpha story that Chesapeake Energy CEO Doug “the ax” Lawler–the guy who’s fired more than 1,500 people (see The Great Chesapeake Massacre II: Lawler Fires Another 740 People)–that guy gave himself a pay raise last year. He made $15.4 million last year–more than Shell’s CEO…
Read More “Chesapeake’s Doug Lawler Gave Himself a Raise After Firing 1,500+”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Apr 1, 2016
April 1, 2016April 1, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: RINO NY Congressman smears natgas pipelines, running for gov; 12 rigs still operating in OH; PennEast Pipeline delayed by FERC; how is Cabot dealing with high debt?; FERC grants favorable enviro review for Leidy South pipeline; shale oil & gas production ready to fall off cliff; natgas prices will stay cheap; worst of oil collapse is over; Dems need to check their frack facts; and more!
Read More “Marcellus & Utica Shale Story Links: Fri, Apr 1, 2016”
Anti-Drilling/Fossil Fuel | Crime | Energy Services | Huntingdon County (PA) | Industrywide Issues | Litigation | Pennsylvania | Pipelines | Sunoco Logistics

PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline
March 31, 2016March 31, 2016

Another environmentalist has tipped over the edge. The daughter of a landowner in Huntingdon County, PA scampered up a tree and planted herself there to prevent that tree and others near it from being cut down by crews clearing a path for the Mariner East 2 pipeline. Just two days ago we told you that Huntingdon County Common Pleas Judge George Zanic previously issued an order to Ellen Gerhart to allow tree clearing on three acres of her property (see Court Grants Mariner East 2 Right to Clear Trees in Huntingdon, PA). Gerhart’s daughter Elise literally “went up a tree” yesterday to a platform pre-built there, between two trees, and says she’ll stay there until the end of the week when tree-clearing season is over. You can’t clear trees after March 31st for fear of killing a threatened bat species. No word on when/if authorities will climb the tree and forcibly remove her. Thing is, she’s not alone. Radical environmentalists are behind Gerhart’s stunt. Two well-known anti-drilling radicals were arrested for blocking work at the site–and bail was set at $100,000 each. Yes, it’s time to get serious with these repeat lawbreakers. It’s also time to go up the tree and extricate Ms. Gerhart and put her in jail with them…
Read More “PA Anti Literally Goes Up a Tree to Stop Mariner East 2 Pipeline”
Energy Companies | Gastar Exploration | Marshall County | Tug Hill Operating | West Virginia | Wetzel County

Gastar Leaving the Marcellus/Utica “on or before” April 8th
March 31, 2016March 31, 2016

As MDN previously told you, Gastar Exploration has found a buyer for its Marcellus/Utica wells and leased acreage located mainly in Marshall and Wetzel counties in West Virginia–for $80 million (see Gastar Leaving Marcellus/Utica, Sells Assets to Tug Hill for $80M). Gastar expected the sale to be completed long before now–but ran into issues with one landowner. Gastar says it’s all patched up now and the transaction will be complete “on or before” April 8th…
Read More “Gastar Leaving the Marcellus/Utica “on or before” April 8th”
Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Pipelines | Pleasants County | Regulation | Ritchie County | Tyler County | West Virginia

WV DEP Fines Antero Resources $93K for “Pollution” of Streams
March 31, 2016March 31, 2016

The West Virginia Dept. of Environmental Protection has gotten a signed consent order from Antero Resources assessing a fine of $93,000 on the company for “pollution” of waterways in several WV counties related to installing pipelines. So says a single Associated Press article. We can find nothing about this story from another other news source than the AP. Not on the WV DEP website. Not on Antero’s website. We scoured the web. We scoured our own MDN archives. Nada. Just a single AP story currently running in dozens of newspapers and in other media outlets/websites across the country. Here is the entire, very brief AP story with sparse details…
Read More “WV DEP Fines Antero Resources $93K for “Pollution” of Streams”
Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Research | Statewide PA

Philly Chamber Publishes Roadmap to Turn Region into “Energy Hub”
March 31, 2016March 31, 2016

Yesterday a large group of business, labor and political leaders gathered in Philadelphia to hear about plans to turn Philly into an “energy hub” with more pipelines delivering natural gas and natural gas liquids to the region. Chemical plants and manufacturers would spring up to use the gas and gas liquids–creating a huge economic impact for the region. According to press reports there were 200 or more gathered for the unveiling of a new report from the Greater Philadelphia Chamber of Commerce’s Greater Philadelphia Energy Action Team (GPEAT). The report is titled, “A Pipeline for Growth, Fueling Economic Revitalization with Marcellus and Utica Shale Gas” (full copy embedded below). Meanwhile, 20-30 silly anti-drillers (who don’t have lives apart from protesting) stood outside and tried their darnedest to shout and disrupt the meeting. How did they react inside? By making fun and laughing at them! Philip Rinaldi, GPEAT Chair and President/CEO of Philadelphia Energy Solutions said this to the crowd as he took the stage: “I’m inclined to ask for a brief moment of silence to hear the protesters a little better.” Love it! You had to have a ticket into the private event–and the antis couldn’t score any tickets to disrupt the event–something they bitterly complained about. We say it’s about time someone pushed back against these disorderly ne’er do wells. Here’s how it went down inside the event, a place the antis couldn’t go…
Read More “Philly Chamber Publishes Roadmap to Turn Region into “Energy Hub””
Air Quality | Dominion Energy | Energy Services | Industrywide Issues | NiSource | Regulation | UGI Energy Services

Dominion & NiSource Bow Down to Lord Obama, Worship the EPA
March 31, 2016March 31, 2016

Yesterday the Environmental Protection Agency (EPA) unveiled the Natural Gas STAR Methane Challenge Program at the Global Methane Forum held in Washington, DC. The Methane Challenge is a “voluntary” program for obsequious companies to pretend they’re concerned about so-called fugitive methane escaping into the atmosphere and toasting Mom Earth. Silly, we know–but this is how some billion dollar companies gain favors from the political establishment–and improve their evil fossil fuel image with the nutjobs who believe in this stuff. Tragically, several Marcellus midstream companies, including Dominion, NiSource and UGI signed on to this flummery. There are 41 such companies from across the country who have signed on to the Methane Challenge (we list them all below). Prediction: It won’t be long before this “voluntary” program becomes involuntary–with the jackboots of the EPA on the necks of all oil and gas companies to get them to comply with the unrealistic standards in the program…
Read More “Dominion & NiSource Bow Down to Lord Obama, Worship the EPA”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Radical Group PennEnvironment Repeats Debunked Lies re Fracking
March 31, 2016March 31, 2016

Question: How do you know when PennEnvironment is lying about fracking? Answer: When they open their mouths to speak. That about sums up a conference call held by the radical Big Green group PennEnvironment yesterday. The call was held to repeat and regurgitate the same old lies, and otherwise bamboozle stupid people who don’t know any better–about the so-called harms of fracking, particularly on human health. Apparently PennEnvironment believes if you wait a few years until after your lies were 100% debunked, and just repeat the same lies again, people will forget and believe you the second, third, or fourth time. Here’s how it went down yesterday…
Read More “Radical Group PennEnvironment Repeats Debunked Lies re Fracking”
Education | Industrywide Issues | Jobs | Pennsylvania | Susquehanna County

Students in College Marcellus Program Unfazed by Sour Job Market
March 31, 2016March 31, 2016

We’ve previously told you about the top notch program at Lackawanna College in northeastern Pennsylvania–their School of Petroleum and Natural Gas (see Lackawanna College Converts Branch Campus to Natural Gas Program). The program is unique, one of just handful nationwide that runs a two-year program that trains students to be technicians, able to operate sophisticated machinery and running compressor stations, for example. Cabot Oil & Gas has been a big promoter of the school (see Cabot Oil & Gas Does it Again – $2.5 Million Gift to Lackawanna College). We personally know a graduate of the program who now runs several compressor stations for Williams–one in Susquehanna County, PA and one in Broome County, NY. The school produces top notch graduates. But what about the recent downturn in the industry–with thousands of layoffs? Has that dampened the spirits of students attending and graduating from the program? Not on your life…
Read More “Students in College Marcellus Program Unfazed by Sour Job Market”
Anti-Drilling/Fossil Fuel | Earthquakes | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA

Harrisburg “Reporter” Blames Republicans for Earthquakes in Ohio
March 31, 2016March 31, 2016

Truly amazing. That’s our reaction to the latest anti-drilling article published by the Democrat-controlled Harrisburg Patriot-News from “reporter” (i.e. anti-drilling advocate and propagandist pretending to be a reporter) Candy Woodall. Woodall used the news about a report recently released by the U.S. Geological Survey regarding earthquakes caused by injection wells to blame a series of earthquakes in Ohio on the previous Republican governor Tom Corbett. Yep. Corbett and his hated (for Democrats) Secretary of the Dept. of Environmental Protection at that time, Mike Krancer, are why there was a series of earthquakes near Youngstown, OH, including a 4.0 magnitude quake on Dec. 31, 2011 (see Youngstown Earthquake and Fracking: Is There a Connection?). Those wicked Republicans who just love to destroy everything. Here’s how the propagandist Woodall used a legitimate story and prefaced it with a totally made-up introduction, just so she could hammer Republicans on fracking one more time…
Read More “Harrisburg “Reporter” Blames Republicans for Earthquakes in Ohio”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Statewide OH

CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline
March 31, 2016March 31, 2016

MDN has written a number of stories about CORN–the COalition to Reroute NEXUS (see our stories here). The CORNballs have just resurfaced to pedal more obstructionist advice, hoping to incite a riot against a simple pipeline in Ohio. Do you know how many thousands of miles of pipelines already exist in Ohio–and have for generations? And yet this group falsely paints a picture of environmental holocaust if one more pipeline is built in the Buckeye State. Like community organizers everywhere, CORN is attempting to foment civil unrest and create an atmosphere where there are potential clashes between landowners, the pipeline company, and local law enforcement. They hope and pray for an “incident” that they can use as publicity to paint the pipeline as evil and uncaring about landowners. It’s all bilge–every last bit of it. Here’s the latest PR offensive from the CORNballs of Ohio…
Read More “CORNballs Tell OH Landowners to Call Police & AG to Stop Pipeline”
Atlas Energy | Energy Companies

Atlas Energy Rejiggers Outstanding Debt, Converts 1st to 2nd Liens
March 31, 2016March 31, 2016

As MDN has previously noted, Atlas Energy has been in financial trouble for some time. Just a few years after the company sold two different tranches of their vast Marcellus assets for a cumulative $12 billion (!), the company’s stock was tossed off the New York Stock Exchange and relegated to the Pink Sheets as a penny stock (see Atlas Energy “Penny Stocks” Begin Trading Today on OTCQX). In February the relatively small company laid off ~125 employees (see Atlas Energy Update – 125 Layoffs Companywide). The new news for Atlas is that the company announced yesterday they’ve rejiggered their debt–restructuring some of it as second liens…
Read More “Atlas Energy Rejiggers Outstanding Debt, Converts 1st to 2nd Liens”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Mar 31, 2016
March 31, 2016March 31, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: NY towns don’t get say in crude pipeline review; how NY fractivists twist the truth; OH only has 1% chance of injection well-related earthquake in 2016; OH colleges get $272K grant for o&g training program; natgas replacing nuclear energy in Vermont; Massachusetts AG bullies Exxon; loan defaults keep mounting for drillers; oil market price disruption “just beginning”; natgas leads the pack with power generation; and more!
Read More “Marcellus & Utica Shale Story Links: Thu, Mar 31, 2016”
Ethane | Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Cracker Plant in Scotland “Brought Back to Life” Thx to Marcellus Ethane
March 30, 2016March 30, 2016

The Swiss-based company INEOS is a young but rapidly growing chemical company with roughly $40 billion in sales per year. INEOS’ competitors would be companies like BASF, Bayer and Dow Chemical. One of the projects owned by INEOS is an ethane cracker/chemical plant complex in Grangemouth, Scotland. It is Scotland’s biggest manufacturing complex hosting Europe’s biggest ethane storage tank–able to store up to 33,000 tonnes of liquid natural gas. INEOS announced yesterday that the second manufacturing unit at the Grangemouth plant has been “brought back to life” some eight years after being mothballed. The reason? To begin processing Marcellus shale ethane that will be shipped to it later this year from the Marcus Hook refinery near Philadelphia…
Read More “Cracker Plant in Scotland “Brought Back to Life” Thx to Marcellus Ethane”