Marcellus Drilling News

Industrywide Issues | Statewide WV | Taxation | West Virginia

WV Gov. Tomblin Proposes to LOWER Oil & Gas Severance Tax
January 22, 2016January 22, 2016

Ohio Gov. John “foreigner hunter” Kasich has been hellbent on raising Ohio’s oil and gas severance tax–for years. As recently as last June Kasich predicted his 6.5% proposed severance tax would get adopted (see Kasich Predicts Severance Tax Deal Will Happen, Others Say No). Last fall OH Republicans continued to flirt with the idea (see Ohio Legislators Continue Dalliance with Kasich Severance Tax). The state still has not raised it, even though Kasich has lobbied hard for over three years. Pennsylvania, on the other hand, continues to consider converting their better impact fee for a less better severance tax. Republicans there are getting weak-kneed too (see Some PA Republicans Beginning to Cave on Severance Tax). It seems the severance tax is like the mythical siren song attempting to lure states onto the rocks of less drilling. But hold on to your hat. In contrast to OH and PA, there’s one state, and one governor, who’s not falling for higher severance taxes. PA Democrats trot out West Virginia as their shining example of how severance taxes don’t chase drillers away–to bolster their argument that PA should adopt a severance tax. Guess what? WV figured out high severance taxes DO chase drillers away, and WV’s Democrat governor, Earl Ray Tomblin, is proposing the state LOWER its oil and gas severance tax in 2016! It’s a devastating blow to PA Gov. Tom Wolf and his obsessive-compulsive insistence on a severance tax…
Read More “WV Gov. Tomblin Proposes to LOWER Oil & Gas Severance Tax”
Beck Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio | Statewide OH | XTO

OH Supreme Court Upholds Victory for Beck Energy in Lease Case
January 22, 2016January 26, 2016

A major victory for oil and gas drillers in Ohio was just handed down by the Ohio Supreme Court. You may recall MDN brought you the news in October 2014 that the Seventh District Court of Appeals in Ohio overturned a lower court ruling in the case of Hupp v. Beck Energy Corp (see Major OH Court Victory for Beck Energy & XTO in Lease Case). Brief background: three landowners filed suit claiming that their leases with Beck Energy Corp. were void and should be terminated because Beck never drilled wells on their property and that a provision allowing Beck to pay a nominal delay fee was against public policy. The lower court agreed and granted summary judgment. The court then granted class certification to the lawsuit brought by the three landowners–meaning between 600-700 landowners would also be able to invalidate their leases. On appeal to the Seventh District Court, the case was overturned and decided in favor of Beck Energy (and XTO Energy who had purchased the leases from Beck). It was appealed again, to the OH Supreme Court, and the high court has sided with Beck/XTO…
Read More “OH Supreme Court Upholds Victory for Beck Energy in Lease Case”
Forced Pooling | Industrywide Issues | Regulation | Statewide WV | West Virginia

Some Give Up, Others Continue to Oppose WV Forced Pooling Law
January 22, 2016January 22, 2016

The fight for a forced pooling law in West Virginia continues. Some who have opposed such a law in the past are now changing position and attempting to get as favorable terms as possible. They’re throwing in the towel. Others are still hoping to stop the bill, for a fifth time. So far the forced pooling bill has not been introduced, even though the WV legislature began its 60-day session last Wednesday, Jan. 13…
Read More “Some Give Up, Others Continue to Oppose WV Forced Pooling Law”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

MA Town Plans to Raise Taxes to Oppose 1 Mile of NED Pipeline
January 22, 2016January 22, 2016

Part of the Kinder Morgan expansion of the Tennessee Gas Pipeline in New England, called Northeast Energy Direct (NED) is due to go through the Town of Warwick, MA. Warwick sits on the Massachusetts/New Hampshire border. Town leaders are opposed to the pipeline running through their town. In order to fight it, the town has opened a voluntary fund that residents can contribute to, to help with legal fees. Apparently the town “fathers” (and “mothers”) don’t have much hope anyone is going to contribute, because they want to allocate money from the town–and raise residents’ taxes in order to do it. Some Warwich residents aren’t thrilled with the prospect, since they’re already taxed up to the eyeballs. Here’s the kicker: Only about one mile of pipeline will traverse the Town of Warwick. They want to soak taxpayers to oppose a project that’s one mile of pipeline. Really? Are they really that radicalized against fossil fuels?…
Read More “MA Town Plans to Raise Taxes to Oppose 1 Mile of NED Pipeline”
Energy Services | Seventy Seven Energy

Seventy Seven Energy’s Stock Threatened with Delisting from NYSE
January 22, 2016January 22, 2016

Last week we told you that Seventy Seven Energy, the former Chesapeake Oilfield Operating division of Chesapeake, spun off into its own company on July 1, 2014, had hired a “turnaround” company to help it, well, turnaround…financially (see Seventy Seven Energy Hires Turnaround Expert, Hopes to Stay Afloat). Perhaps we now know why. Yesterday Seventy Seven notified the world that the New York Stock Exchange has sent them a warning that their stock has fallen below minimum standards for continued listing on the exchange–unless they turn it around, fast. We’re not sure whether or not that will happen. Last week when we told you the company had hired a turnaround expert, their stock was trading at 60 cents per share. As of end of trading yesterday, that number was 48 cents per share. Last week the company’s market capitalization (how much the company is worth on paper) was $45.4 million. As of yesterday, the company’s marketcap was $21.13 million…
Read More “Seventy Seven Energy’s Stock Threatened with Delisting from NYSE”
Commodity Price | Crude Oil | Industrywide Issues

Could Oil Go as Low as $10/Barrel? Yes, Says Jim Cramer
January 22, 2016January 22, 2016

Lately we’ve highlighted several articles about the price of oil (and gas). We ask, once again, just how low could the price of oil go? Jim Cramer on Mad Money addressed that question yesterday. His answer may shock you. Using research sent to him from Rusty Braziel, whom Jim recently interviewed and whom he calls “the smartest man in the oil patch” (see The Smartest Man in the Oil (& Gas) Patch: Rusty Braziel), Cramer says it’s not inconceivable that oil may go as low as $10 per barrel. You read that right! Here’s his reasoning…
Read More “Could Oil Go as Low as $10/Barrel? Yes, Says Jim Cramer”
Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | New York | Orange County

Blat Session to Oppose Upstate NY NatGas-Fired Electric Plant
January 22, 2016January 22, 2016

Last September Hollywood actor James Cromwell, who lives in Manhattan and keeps a summer home in upstate–Orange County, NY–banded with some of his anti-fossil fuel neighbors and sued to stop the Competitive Power Ventures (CPV) $900 million natural gas-fired electric generating plant planned to be built near his home. The frivolous lawsuit was tossed out (see Orange County, NY Marcellus-Fired Electric Plant OK’d by Judge). What’s a spoiled rich kid from Manhattan who wants to keep upstate pristine as his own private playground going to do? Get a bunch of easily-impressed neighbors to stage a sit-in and illegally block construction at the site. Which they did, and promptly got arrested for (see Actor James Cromwell Arrested Protesting NY Power Plant Site). This is the story that keeps on giving. Another has-been like Cromwell, former Congressman Dennis Kucinich (left of Bernie Sanders, if that’s possible), showed up at a blat session on Wednesday to lend his voice in opposition…
Read More “Blat Session to Oppose Upstate NY NatGas-Fired Electric Plant”
Energy Companies | Rex Energy

Rex Energy Suspends Preferred Stock Dividends to Conserve Cash
January 22, 2016January 22, 2016

Drillers continue to deal with the downturn in the market in different ways. Different companies, different strategies. Yesterday Rex Energy, a pure play Marcellus/Utica driller headquartered in State College, PA announced they are suspending dividend payments on their preferred stock, to conserve capital. It won’t make preferred stockholders happy, but at least the company can continue to live to fight another day…
Read More “Rex Energy Suspends Preferred Stock Dividends to Conserve Cash”
Chenango County | Energy Services | Industrywide Issues | New York | Pipelines | Williams

Rally to Support Constitution Pipeline in Afton, NY Tomorrow
January 22, 2016January 22, 2016

As we’ve previously mentioned, a few times, there will be a meeting tomorrow in Afton, NY to support the Constitution Pipeline. The Joint Landowners Coalition of New York (JLCNY) is sponsoring this rally to support the Constitution. MDN editor Jim Willis plans to be there–and we hope you do too. Meeting details are listed below. It’s time–in our opinion long past time–to sue the state and force the issue. It’s time to build the Constitution Pipeline!…
Read More “Rally to Support Constitution Pipeline in Afton, NY Tomorrow”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Jan 22, 2016
January 22, 2016January 22, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Stuffing the CELDF back in its bottle; NY comptroller asks Exxon about climate change risk; Moundsville electric plant still on sked; NJ residents hire DC firm to oppose PA pipeline; EPA continues out of control, wants FERC to change its charter; Obama vetoes attempt to block his Clean Water power grab; Obama uses CA catastrophe to advance his own agenda; group proves NASA is lying about climate change data; appeals court declines to block Obama dictatorship on carbon emissions; some o&g drillers can’t give their assets away; and more!
Read More “Marcellus & Utica Shale Story Links: Fri, Jan 22, 2016”
Air Quality | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Quigley Expounds on Methane Emissions Plan: Drillers to Get Hosed
January 21, 2016January 21, 2016

John Quigley

On Tuesday Pennsylvania Gov. Tom Wolf unveiled his Marcellus-killing plan to cut fugitive methane another 40% over current levels in the next five years (see PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs). Interestingly, Wolf’s Sec. of the Dept. of Environmental Protection (DEP), John Quigley, admits they don’t even know what current levels of fugitive methane emissions are–so how will they know when they’ve cut it by 40%? But we digress. Yesterday Quigley held a quick 15-minute webinar to discuss the four-point plan he and Wolf have hatched. Quigley said while the new rules may require more DEP inspectors, it “initially will require more work on the part of the operators.” Translation: Drillers and midstreamers are about to get hosed by the Wolf administration…
Read More “Quigley Expounds on Methane Emissions Plan: Drillers to Get Hosed”
Air Quality | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

Radicals Praise Wolf’s Plan to Kill PA Drilling via Methane Regs
January 21, 2016January 21, 2016

As we told you yesterday, Pennsylvania Gov. Tom Wolf has set his sites on reducing fugitive methane emissions from the oil and gas industry in the Keystone State, all in the name of mythical man-made global warming (see PA Gov. Wolf’s Plan to Kill Drilling via Methane Emissions Regs). We gave you a few early reactions from the far-left/radical contingent, including PennFuture, Clean Air Council, and the Sierra Clubbers–all of whom love his plan to screw the shale industry. We spotted a few more accolades for Wolf’s new plan to end drilling in the Keystone State, from Environment America (which has a “Stop Drilling Program”), and the radicals at Earthworks and the National Resources Defense Council. When this rogues gallery of antis loves something, you know it’s really bad…
Read More “Radicals Praise Wolf’s Plan to Kill PA Drilling via Methane Regs”
Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

PA Pipeline Task Force Wraps Up – Did We Worry for Nothing?
January 21, 2016January 21, 2016

Looks like we worried for nothing. Yesterday was the final meeting of the PA Pipeline Infrastructure Task Force. When it was first formed last May, we worried that local gathering pipelines would get wrapped around a regulatory axle (see Disaster on the Horizon: PA Gov Wolf Creates Pipeline Task Force). The situation seemed even grimmer when Wolf and Quigley packed the task force with government workers–half of the 48 members work for the government (see PA Gov Wolf Packs Pipeline Task Force with His Own Minions). After months of squabbling, Task Force members produced a 335-page document with 184 “recommendations” last November (see PA Gathering Pipeline Draft “Recommendations” from Wolf Task Force). As we noted at the time, “recommendations” have a way of becoming “regulations” in the hands of LibDems. But it appears the Task Force was a paper lion after all. At least one prominent member of the Task Force (Democrat Sen. Andy Dinniman) is moaning that he thinks nothing will come of the work from the Task Force…
Read More “PA Pipeline Task Force Wraps Up – Did We Worry for Nothing?”
Energy Services | Nuverra Environmental

Nuverra Environmental Delisted from NYSE, Now a Penny Stock
January 21, 2016January 21, 2016

Nuverra Environmental Solutions is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. We’ve written about Nuverra a couple of times in the past, most recently in 2013 when we highlighted an investor lawsuit against the company (see Nuverra Environmental Sued Over Stock Price Tumble). Those investors have even more to make them angry. As of yesterday, Nuverra was delisted from the New York Stock Exchange and became a penny stock trading on the OTCQB Market…
Read More “Nuverra Environmental Delisted from NYSE, Now a Penny Stock”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Litigation

Climate Change Lawsuit by Radicalized Children Gets Interesting
January 21, 2016January 21, 2016

Last August MDN told you about a lawsuit brought by a group of left coast radicalized children who want to force the federal government to become communist and “force action” on mythical climate change (see Group of Kids Sues U.S. Govt to Force Action on “Climate Change”). We don’t really blame these kids for being stupid–it’s their schools, Saturday morning cartoons, and likely (because it’s Oregon) their parents who have driven them into climate change insanity. But nefarious adults with an agenda who are behind this effort, using the kids as props, are deadly serious and intent on ripping apart the fabric of capitalism in our country. The lawsuit sits in U.S. District Court in Eugene and, unfortunately, we must take it seriously. The judge in the case has just allowed three trade groups to join the lawsuit as defendants, along with the government: the National Association of Manufacturers, American Fuel & Petrochemical Manufacturers and the American Petroleum Institute…
Read More “Climate Change Lawsuit by Radicalized Children Gets Interesting”
CNG/LNG | Exporting | Industrywide Issues | Research

LNG May Not be a Panacea for Marcellus/Utica NatGas Producers
January 21, 2016January 21, 2016

Last November MDN editor Jim Willis attended a Genscape/Bloomberg joint event in New York City (at Bloomberg’s offices) called “Gas and Power Winter Outlook 2015.” It was part advertisement for the Bloomberg terminal and the many fantastic resources available on their terminal, part advertisement for Genscape and the truly unique and innovative services they provide, along with a healthy sprinkling of predictions about where the natural gas market will head over the winter months. Jim enjoyed it a great deal because it provided perspective on the larger worldwide market and how it drives our markets here at home. One very interesting thing Jim learned was this: Asian countries in general, and Japan in particular, are reducing their need for LNG (liquefied natural gas) because, in the case of Japan, the country is starting up its nuclear energy program again, and because solar energy is coming online and providing a greater share of the country’s electric needs. With more nuclear and solar, Japan needs less LNG. Here in the U.S., particularly in the Marcellus/Utica region, we have pegged a lot of our hopes on a robust export market for our natural gas. But what if that market is disappearing right before our eyes? That’s kind of the upshot of a new report just released by economists at global consulting firm The Brattle Group. The report, called “LNG and Renewable Power: Risk and Opportunity in a Changing World” (full copy below), takes a close look at the competition playing out between renewable energy like solar and wind and natural gas-fired electric from LNG…
Read More “LNG May Not be a Panacea for Marcellus/Utica NatGas Producers”