Marcellus Drilling News

Ethane | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Statewide PA | Sunoco Logistics

Marcellus Ethane Sets Sail for Europe Next Month
January 11, 2016January 11, 2016

We’re almost there! As MDN told you last June, INEOS, one of Europe’s largest petrochemical companies, had commissioned and purchased two tankers to ferry Marcellus/Utica ethane from the Marcus Hook refinery near Philadelphia to Norway and Scotland (see Ineos Gets Ready to Begin Ethane Exports from Marcus Hook, PA). The final leg of the Mariner East Pipeline is ready to go online, and the twin tankers are ready to be loaded. In February, the first shipment of Marcellus ethane will set sail from Philadelphia bound for Norway…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Kanawha County | Pipelines | West Virginia

Columbia Pipeline Gets FERC Approval for WV Utica Access Project
January 11, 2016January 11, 2016

Columbia Pipeline Group has just received a green light from the Federal Energy Regulatory Commission (FERC) to proceed with their Utica Access Project. The project will cost Columbia $45 million and involves building five miles of new pipeline and upgrading compressor stations in Kanawha County, WV. When complete, the project, begun under NiSource (before Columbia separated into its own company), will transport 200 million cubic feet per day of Utica Shale gas for Eclipse Resources Corporation to liquid trading points on the Columbia Gas Transmission interstate pipeline system…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | Regulation | Statewide VA | Statewide WV | Virginia | West Virginia

Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA
January 11, 2016January 11, 2016

In addition to receiving Federal Energy Regulatory Commission (FERC) approval for the Utica Access Project, Columbia Pipeline Group has just filed their full, official application with FERC for approval of the $850 million WB XPress Project, consisting of two new compressor stations, 26 miles of pipeline replacement located along existing corridors, and 2.9 miles of new pipeline in Virginia and West Virginia. The WB XPress Project will expand capacity of the Columbia Gas Transmission pipeline in the region by 1.3 billion cubic feet per day, linking Marcellus gas supplies to new markets…
Read More “Columbia Pipeline Files to Build $850M WB XPress Project in WV/VA”
Commodity Price | Industrywide Issues | Pipelines

New Pipelines in the Marcellus Dramatically Improved Prices in 2H15
January 11, 2016January 11, 2016

What a difference a few pipelines can make. Last week the U.S. Energy Information Administration (EIA) issued their Natural Gas Weekly report (excellent report, great overview of the industry at large). One of the brief articles included in last week’s EIA update was story about the “basis differentials” for the Marcellus, and how they’ve narrowed. Basis differential means “how much does the gas trading at a given location trade above or below the standard Henry Hub price.” For example, last summer gas trading at Transco’s Leidy Hub in the Marcellus was trading for $1.65 million British Thermal Units (MMBtus) BELOW the Henry Hub price. In December, the gap had narrowed and Transco Leidy Hub prices were, on average, trading around 89 cents/MMBtu below the Henry Hub price. That’s a vast improvement in just six months. Why the narrowing in trade price? New pipelines came online in the latter half of last year, carting Marcellus Shale gas to new markets. More demand (i.e. new markets) equals a bump up in price…
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American Water Management | Energy Services | Industrywide Issues | Litigation | Ohio | Trumbull County | Wastewater

AWMS Appeals Decision Upholding Trumbull Injection Well Closure
January 11, 2016January 11, 2016

American Water Management Services (AWMS) owns a wastewater injection well in Trumbull County that supposedly caused a low-level earthquake (that nobody could feel) in 2014. Two wells located at the site, both operated by AWMS, were “temporarily” shut down by the Ohio Dept. of Natural Resources following the quake (see ODNR Temporarily Shuts Down Injection Wells After Low-Level Quake). One of the two injection wells was allowed to re-open, but not the other (see ODNR Clears Trumbull Co. Injection Well in August Quake). However, AWMS can’t open just the one well. They need to open both and operate both. The ODNR is supposedly crafting new regulations that will govern the offending well that may or may not have caused the low-level quake and a year-and-a-half later the ODNR has not released those new regs. Meanwhile, everyone at that operation is out of a job. AWMS appealed the closure and last month a county judge threw out the appeal (see Judge Tosses Appeal to Re-Open Trumbull, OH Injection Well). So AWMS has appealed it to the next level up–the 10th District Court of Appeals…
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Allegheny County | Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania

Pittsburgh Plans to Divest from Mutual Funds that Own Fossil Fuels
January 11, 2016January 11, 2016

Can this POSSIBLY be true? The City of Pittsburgh, which has fashioned itself as “the new Houston” and center of the energy universe, is beginning a program to divest from any investments it has in fossil fuel companies?! It appears it is true. Ever hear the phrase, “Don’t bite the hand that feeds you”? Of course the drive to divest is coming from Democrats–they’re the ones who run city government. If they actually go forward with it, we predict they will rue the day they decided to do it. The plan, as it’s been outlined, would be to divest “gradually,” over a period of years. The real kicker is that Pittsburgh doesn’t invest directly in stocks like CONSOL Energy or EQT or many of the other big independents who call the Pittsburgh region home. But they do invest in mutual funds that own those stocks. It is the mutual funds they plan to shed, over time. Talk about blithering idiots…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Dem Media Spins New PA Severance Tax Proposal as “Conservative”
January 11, 2016January 11, 2016

At least one Republican, Pennsylvania State Rep. Jim Christiana (from Beaver County, PA), is pushing a new severance tax plan he considers kinder and gentler than that proposed by PA Gov. Tom Wolf. Christiana has proposed a tax with a rate of “just” 3%, instead of Wolf’s demand of 5% (see Some PA Republicans Beginning to Cave on Severance Tax). However, Christiana’s tax plan would, in time, increase to 5%–just like Wolf’s. Of course all of these numbers are hocus pocus horse manure. The actual percentage goes much higher when you factor in all of the extras. What’s interesting to us is how Democrat-controlled media organizations like the Scranton Times-Tribune (and its subsidiary the Wilkes-Barre Citizens’ Voice) are attempting to spin this news. They published an article referring to Christiana as a “conservative” trying to imply conservatives are now on board with a severance tax on drilling in the Keystone State. Let us assure you, such is not the case. It is another sterling example of media bias and spin…
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About MDN | Calendar

Calendar of Events for Jan – Apr 10 (90 Days)
January 11, 2016January 11, 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.
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Best of the Rest

Marcellus & Utica Shale Story Links: Mon, Jan 11, 2016
January 11, 2016January 11, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Marcellus “most susceptible” to rig departures; DEP gives Keystone Sanitary Landfill more time to make case; CONSOL flaring Greene County well; Penn State caves to global warming nutters; Vermont pipeline goes forward; some E&Ps are zombies–the “walking dead”; world benefits from U.S. LNG exports; OPEC’s trillion dollar miscalculation; and more!
Read More “Marcellus & Utica Shale Story Links: Mon, Jan 11, 2016”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Research

EPA Takes First Step to Renounce its Own Fracking/Water Research
January 8, 2016January 8, 2016

As we pointed out just last month, the so-called “scientists” who belong to the federal Environmental Protection Agency’s (EPA) Science Advisory Board have begun the long process of getting the EPA to change the outcome of its 4-year study of fracking that concludes fracking doesn’t pollute groundwater (see Will EPA Whore Itself to Antis and Change Fracking Water Study?). The EPA originally launched a 2-year study, that later turned into a 4-year study, in which they analyzed 950 studies related to fracking. The EPA also designed and completed 9 of their own studies. At the end of this arduous and scientifically rigorous process, the EPA concluded, in a published report in June 2015, that fracking does not pollute water (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). Ever since the EPA report was issued anti-drilling radicals have demanded the EPA change the outcome of its science (see Anti Groups Try to Convince EPA They Got it Wrong with Water Study). True science doesn’t change nor cave to political pressure. A few dozen members of what is called the EPA Science Advisory Board (SAB) released a draft a letter (copy below) yesterday. The letter calls into question the conclusion that fracking doesn’t pollute water. Voila. Another example of “science” being corrupted by political philosophy…
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Economic Impact | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Shortages Begin: Tangible Result of No Pipelines in New England
January 8, 2016January 8, 2016

In December 2014 the Massachusetts-based utility Berkshire Gas Company announced the amount of natural gas they could purchase from the Tennessee Gas Pipeline (TGP) was at full capacity. There’s no additional gas supplies to buy–unless TGP builds their Northeast Energy Direct (NED) expansion project. So Berkshire was forced to tell new customers for natural gas in portions of Franklin County they won’t be able to tap into Berkshire’s line (see Guts: No New Pipeline in MA? Then No New Natgas for Utility Customers). In September, the Massachusetts Dept. of Public Utilities (DPU) approved long-term contracts for three utilities, including Berkshire Gas, to buy natural gas supplies from TGP’s NED pipeline when/if it gets built (see Mass. Approves Plan for Utilities to Buy Gas from New Pipeline). Anti-drilling nutters promptly sued to stop that plan (see Anti Group Sues to Stop Mass. Utilities from Buying Natural Gas). It’s now a year after Berkshire’s first announcement that some communities in Franklin County won’t get new natgas service. Berkshire has had to expand the prohibition area. They’re now turning down new businesses in neighboring Hampshire County, which is causing a stir. We’re not sure why antis don’t get it. No new gas, no new service. It’s pretty simple. Below is the story of a jilted Texas Roadhouse, who says they wouldn’t have purchased land and built had they known they couldn’t get natgas service. Translation: more businesses will stay away, or perhaps even leave, because they can’t get natgas due to the shortage…
Read More “Shortages Begin: Tangible Result of No Pipelines in New England”
Energy Companies | Lease & Royalty Payments | Marshall County | Ohio County | Southwestern Energy | West Virginia

Southwestern Energy Renewing Leases in WV, PA
January 8, 2016January 8, 2016

Tick tock tick tock. Every day that passes brings landowners and drillers closer to the end of an initial five-year lease contract. In October 2014, Southwestern Energy purchased a humongous 413,000 acres of leases from Chesapeake Energy, most of that land in West Virginia (see Chesapeake Sells Close to 25% of Marcellus/Utica Operation). Southwestern paid over $5 billion for the deal. That leased acreage came with an expiration–which is happening now, at least for some (most?) of the acreage. Every lease is different. Some leases allow the driller to pay the same (or a different) renewal payment to keep the lease going for another period of time, typically another five years. The $5 billion question is, what will Southwestern do? Everyone is scaling back right now. Companies just can’t afford to do much drilling. Will Southwestern opt to renew those leases that they paid big bucks for? It seems we have an answer to that question. A WV newspaper is reporting that Southwestern has begun extending leases in Ohio and Marshall counties…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

Antis Wrong: No Link Between Fracking & Smallmouth Bass Decline
January 8, 2016January 8, 2016

Back in 2012 Congressman Camille “Bud” George, Democrat from Clearfield County, PA, opened his big mouth and tried to blame fracking for a problem with smallmouth bass in the Susquehanna River (see PA Dems Blame Marcellus Drilling for Smallmouth Bass Problem). Last May, the nutters from a group called “Occupy the Constitution Pipeline Route” repeated the same accusation, showing a picture of a diseased smallmouth with a huge tumor (see below). Thing is, none of it is true. Earlier this week the head of PA’s Dept. of Environmental Protection, John Quigley, and the head of PA’s Fish and Boat Commission, John Arway, both said the smallmouth bacterial disease issue is unrelated to fracking…
Read More “Antis Wrong: No Link Between Fracking & Smallmouth Bass Decline”
Ohio | Statewide OH | Utica Shale

Updated Map of Ohio Utica Permits/Wells for Jan 2016
January 8, 2016January 8, 2016

Every few months the Ohio Dept. of Natural Resources (ODNR) produces a map that shows where Utica permits have been issued, where Utica wells have drilled, and where drilled wells are now flowing natural gas (and oil and NGLs). We bring you a copy of this map from time to time. Below is the most recent version, issued on Jan. 4. Here’s a few MDN observations about this map…
Read More “Updated Map of Ohio Utica Permits/Wells for Jan 2016”
CNG/LNG | Exporting | Industrywide Issues | Pipelines | Processing Plants | Regulation

New LNG Facility Green Lighted in Canada, Would Use Marcellus Gas
January 8, 2016January 8, 2016

Another LNG export facility along the East Coast of Canada has just received a green light from the Canadian National Energy Board (NEB). To be honest, this one was not previously on our radar. The facility would be built and owned by Hiranandani Group of Mumbai, India. They’re using a subsidiary company called Atlantic Coast (or AC) LNG Inc. The plan is to build the facility in Nova Scotia and (mostly) use Marcellus/Utica gas imported from the United States via the Maritimes & Northeast Pipeline (M&NE). Currently the M&NE flows from north to south, from Canada to the U.S. There is serious talk of reversing the flow. In fact, at some points for brief periods the flow already gets reversed, during peak demand periods in Canada. The NEB has granted AC LNG a permit to import up to 2.3 billion cubic feet per day (Bcf/d) of U.S. natural gas. The permit also grants them the right to export up to 2 Bcf/d from the terminal, if built. Some of the particulars…
Read More “New LNG Facility Green Lighted in Canada, Would Use Marcellus Gas”
CNG/LNG | Energy Companies | Energy Services | Exporting | Industrywide Issues | Pipelines | Regulation | Repsol | Spectra Energy

Repsol Not Happy with Spectra’s Atlantic Bridge, Pipeline Reversal
January 8, 2016January 8, 2016

A number of Canadian LNG export facilities being planned for eastern Canada are dependent on obtaining cheap, abundant Marcellus and Utica Shale gas from the U.S. Today we highlight news of a new (to us) entrant into the LNG race, AC LNG (see our companion story). How will Marcellus and Utica Shale gas get to the northern reaches of Canada? Via the Maritimes & Northeast Pipeline LLP (M&NE), a pipeline that stretches from the Boston area all the way to the northern reaches of Nova Scotia. Historically the M&NE pipeline has brought natural gas south, from Canada to the U.S. One of the sources of the gas traveling south on the M&NE is the Canaport LNG facility in New Brunswick–which imports LNG and regassifies it and sends it out over the M&NE. Repsol, a huge Spanish oil company, is the owner of the Canaport facility. So it’s no surprise that Repsol is sounding the alarm and asking the question: What happens to the gas we send south if M&NE reverses its flow and begins sending gas north?…
Read More “Repsol Not Happy with Spectra’s Atlantic Bridge, Pipeline Reversal”