Marcellus Drilling News

Accidents | Crime | Energy Companies | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | XTO

XTO Criminal Trial for Accident Spill in PA Delayed Until 2016
October 23, 2015October 23, 2015

Not long after she took office, Pennsylvania’s Democrat Attorney General, Kathleen Kane, brought criminal charges against XTO Energy for an accidental spill in Lycoming County, PA that happened two years before she was in office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). Kane herself will likely soon be forcibly removed from office because she lied under oath, a criminal offense called perjury, and has now lost her license to practice law (see End is Near: PA AG Kane’s Law License Suspended by Supreme Court). The last we heard anything about Kane’s sham case against XTO is that Democrat Lycoming County Judge Marc Lovecchio refused to dismiss the charges against XTO in April (see Democrat County Judge Rules PA AG’s Case Against XTO Can Proceed). We have a development to report. XTO has been trying to work out a deal with the AG’s office to make this asinine criminal charge go away. You can be sure it involves lots of money (a government shakedown of XTO). So XTO has filed a continuance request, pushing the trial off until 2016. The judge granted the request because XTO says “meaningful discussion$” have been held, which means a trial may be avoided altogether…
Read More “XTO Criminal Trial for Accident Spill in PA Delayed Until 2016”
Industrywide Issues | Pennsylvania | Research | Statewide PA

Expensive Audit Tells PGW to Buy More PA Shale Gas to Save Money
October 23, 2015October 23, 2015

Here’s a thought: Why doesn’t the Philadelphia Gas Works (PGW) convert more of the gas it buys to take gas from the nearby Pennsylvania Marcellus Shale and dump buying gas from the Gulf Coast–because PA’s gas is closer and much cheaper, it will result in lower costs for PGW and lower bills for consumers. Now, where do we go to collect our $1.5 million consulting fee for that fine idea? The Pennsylvania Public Utility Commission contracted with Michigan consulting firm Schumaker & Company, Inc. to perform a top to bottom audit of the PGW. While we don’t know how much the audit cost, we did find a 2008 proposal from Schumaker to New York State touting the same kind of audit, with a total price tag (back then) of $1.3 million. So we figured with a little inflation the audit just turned in by Schumaker must have run at least $1.5M. The chief, number one suggestion by Schumaker? PGW can save $6-$7 million a year by buying more of its gas (60% more) from the Marcellus Shale region, upping it from the current 33% they buy from the Marcellus now. Maybe we should get into the consulting business. Sure pays better than blogging!…
Read More “Expensive Audit Tells PGW to Buy More PA Shale Gas to Save Money”
Electrical Generation | Industrywide Issues | Litigation | Regulation

States Gear Up to Fight Obama’s Illegal Clean Power Plan in Court
October 23, 2015October 23, 2015

In August our Dear Leader, Barack Hussein Obama, introduced his latest edict called the Clean Power Plan. The plan uses the federal Environmental Protection Agency to completely eliminate coal-fired electric plants, and greatly diminish natural gas-fired electric plants (see Obama Stabs Natural Gas Electric Plants in Clean Power Plan). It is the latest in a long line of illegal presidential edicts coming from the Obamadroids. In short order 15 states sued the federal government to stop this madness (see Ohio and 15 Other States Ask EPA to Delay Clean Power Plan). But a federal court refused to allow the implementation to happen while the lawsuit grinds through its process (see Minor Setback: Fed Court Tells States “No Delay, Yet” re Obama CPP). Planning for implementation is now underway and an EPA flack spoke to the press to share how pleasantly surprised she is that most states are completely docile and willing to be screwed this way. With the final printing of the rule in the Federal Register today, states will now have up to 60 days to file new lawsuits to stop it. You can bet your bottom dollar they will…
Read More “States Gear Up to Fight Obama’s Illegal Clean Power Plan in Court”
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Oct 23, 2015
October 23, 2015October 23, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: MSC’s Spigelmyer says to regulate for the “right reasons”; more PA impact fee money flows to local towns; Moundsville power plant promises better communication; headhunter finds the bright side of 200K layoffs in oil & gas; and more!
Read More “Marcellus & Utica Shale Story Links: Fri, Oct 23, 2015”
Dominion Energy | Energy Services | Harrison County | West Virginia

Dominion Employees Move into Swanky New WV HQ Office Building
October 22, 2015October 22, 2015

Click image for larger view

Dominion Transmission announced yesterday that they have completed building a brand new 106,000 square foot office building in Bridgeport, WV and some 300 employees have moved into the new facility. Those 300 employees used to work at a facility in Clarsburg, WV, a few miles from the new facility. Dominion says they will continue adding employees at the new facility as they ramp up to build the Atlantic Coast Pipeline, a $5 billion pipeline that will run from WV through VA and into NC. The new office building is the regional headquarters for Dominion’s 7,800-mile pipeline system. WV Gov. Earl Ray Tomblin was happy as a clam and said the company is committed “to the ongoing development of West Virginia’s natural gas industry.” Here’s more about Dominion’s swanky new office building in Bridgeport…
Read More “Dominion Employees Move into Swanky New WV HQ Office Building”
Baker Hughes | Energy Services

Baker Hughes 3Q15: $156M Loss, Revenue Down 39% from 3Q14
October 22, 2015October 22, 2015

Halliburton is in the process of buying its smaller competitor Baker Hughes. Although the plan was to have the merger complete by December 1st, it’s almost certain the date will slip into early 2016 (see Update on Halliburton/Baker Hughes Wedding Plans). Both companies are contract drillers with big operations in the Marcellus/Utica (i.e. oilfield services companies). We wonder if Halliburton had known just how bloody the oil and gas market would get, if they would have embarked on a merger in the first place. Two days ago we told you that Halliburton’s third quarter 2015 was awful with the company losing $54 million (see Halliburton 3Q15: $54M Loss, Cut 18,000 Jobs Over Past Year). Yesterday Baker Hughes released their 3Q15 update and reports they lost a whopping $156 million in 3Q15. Ouch! Both Halliburton and Baker Hughes predict an even *worse* fourth quarter. Doesn’t bode well for the honeymoon. Here’s the update from Baker Hughes for 3Q15…
Read More “Baker Hughes 3Q15: $156M Loss, Revenue Down 39% from 3Q14”
Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Wastewater | West Virginia

French Company Confirms Building $275M Wastewater Plant for Antero
October 22, 2015October 22, 2015

In August MDN brought you the news that Antero Resources has decided to build a new state-of-the-art frack wastewater treatment plant in Doddridge County, WV for $275 million (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The plant will process up to 60,000 barrels per day of flowback and brine (or “produced water”). We also told you there is a bit of controversy about the project. Antero selected French-based Veolia to build and operate the plant instead of using WV-based Fairmont Brine Processing (see Did Antero Pull the Rug Out from Under Fairmont Brine Processing?). Land clearing was already underway at the Antero site, and permits already applied for, when the news broke in August. Which makes it kind of strange when we saw a press release issued this morning from the Paris, France-based Veolia touting that Antero has selected them to build the plant. Was there ever any doubt? Why did Veolia wait two months to issue their own press release that essentially repeats the details in the earlier Antero press release? Here’s the Veolia press release, fwiw…
Read More “French Company Confirms Building $275M Wastewater Plant for Antero”
Industrywide Issues | Mahoning County | Ohio | Regulation

Mahoning County, OH Democrats Urge “No” Vote on Frack Ban
October 22, 2015October 22, 2015

It’s not often it happens, so we like to make a big deal out of it when it does–praise for a group of Democrats! Kudos to the Mahoning County Democrat Party for their stand AGAINST the no fracking ballot initiative on the November ballot–otherwise known as the Youngstown Community Bill of Rights initiative. As we’ve previously reported, this is the fifth time this idiotic ballot measure has come up for a vote in the City of Youngstown. The OH Supreme Court ruled it should be on the ballot in November (for a fifth time), even though the same Supreme Court ruled against such “home rule” laws earlier in the year (see OH Supreme Court Puts Youngstown Anti-Frack Measure on Ballot). Youngstown Mayor John McNally (Democrat) has opposed the measure multiple times–kudos to him too. However, the entire Mahoning County Democrat machine voted, unanimously, to recommend a “no” vote on the ballot initiative, which is noteworthy because you don’t see such clear-headed thinking from Dems all that often. They get an official MDN “atta-boy/girl” for their strongly worded stand…
Read More “Mahoning County, OH Democrats Urge “No” Vote on Frack Ban”
Dominion Energy | Energy Services | Industrywide Issues | Iroquois Gas Transmission | New York | Pipelines | Statewide NY

FERC Approves Expansion of Dominion Pipeline in Upstate NY
October 22, 2015October 22, 2015

Good news! The Federal Energy Regulatory Commission (FERC) have approved Dominion’s $165 million New Market Project, a project that expands Dominion’s transmission pipeline from western New York across the state to the Capital Region of the state, near Albany. As with any fossil fuel-related project, radical environmentalists objected (see NY Antis Flood FERC in Fight Against Dominion’s New Market Project). The favorite tactic of anti-drillers is to “demand” that FERC exceed its authority by not only evaluating whether this specific project will have negative impacts on the envirnoment or health of people living near it–but also consider that the pipeline means more shale drilling and possibly (gasp) exports. FERC, under law, cannot consider those things. And when they follow the law and do their job, it sends anti fossil fuelers into a tizzy fit. As they are now with the announcement that FERC has approved the New Market Project (albeit seven months late)…
Read More “FERC Approves Expansion of Dominion Pipeline in Upstate NY”
Pennsylvania | Statewide PA

Koch Bros Vilified for Donating $100K to PA Supreme Court Race
October 22, 2015October 22, 2015

In the 2014 campaign for governor of Pennsylvania, California billionaire Tom Steyer gave over $10 million to Tom Wolf’s campaign to help him get elected (see CA Anti-Driller Tom Steyer Purchasing Tom Wolf PA Governorship). Steyer is a very rich anti-drilling nutjob. Hey, if he wants to blow his money like that, who are we to disagree? You might think that “outside money” from a “controversial” figure like Steyer would warrant some kind of news coverage by the state’s major newspapers, like the Pittsburgh Post-Gazette. But you would be wrong. “Nothing to see here–just move along.” That was the way “reporters” at the Post-Gazette treated the purchasing of the governorship in their state by Steyer. No questions. No investigations. Nothing. But along comes the evil, nefarious Koch brothers (cue sinister music), donating $100,000–1% of what Steyer donated–to the effort to elect three conservative Republican judges to the PA Supreme Court, and the Post-Gazette pulls out all the stops to declare this a hideous act of betrayal, something that must be stopped…
Read More “Koch Bros Vilified for Donating $100K to PA Supreme Court Race”
Industrywide Issues | Ohio | Regulation | Statewide OH

OH Gov. John Kasich Unveils His Energy Plan…in NH?
October 22, 2015October 22, 2015

John Kasich

MDN previously reported that so far two of the myriad of Republican presidential candidates have made trips to the Marcellus/Utica region to unveil energy policy proposals, should they be lucky enough to win. Floridian former Gov. Jeb Bush made the trek to Marcellus country near Pittsburgh (see Jeb Bush Visits Rice Energy in PA, Ticks Off Sierra Clubbers). Not to be outdone, about three weeks later fellow Floridian Sen. Marco Rubio make the trek to Utica country in Columbiana County, OH to do the same thing (see Marco Rubio Visits OH’s Utica Shale to Unveil Energy Plan). Rubio’s appearance in Ohio, where OH Gov. John Kasich is also running for president (buy nobody actually knows about him) was kind of like a dog peeing on the neighbor dog’s mailbox. Which caused Kasich to unveil his own “all of the above” energy policy–in New Hampshire…
Read More “OH Gov. John Kasich Unveils His Energy Plan…in NH?”
Energy Services | Industrywide Issues | Litigation | New York | Pipelines | Regulation | Statewide NY | Williams

Time to Force NY DEC to Issue Permit for Constitution Pipeline
October 22, 2015October 22, 2015

Enough is enough. It’s become quite obvious that NY Gov. Cuomo is up to his old tricks–delay and then deny. The Federal Energy Regulatory Commission (FERC) long ago approved the Williams Constitution Pipeline (see FERC Issues Final Approval for Constitution Pipeline in PA/NY). The Constitution is a desperately needed pipeline that will largely following an existing utility corridor where electric lines are run, going from Susquehanna County, PA into Broome County, NY (very near to MDN HQ), into Chenango County, Delaware County, briefly touching Otsego County, and terminating in Schoharie County where it will connect with the Iroquois and Tennessee Gas pipelines. The pipeline will not only provide northeast PA gas to people in the New York City/New England area, there will be taps along the pipeline to deliver gas locally to communities along the way. The only thing preventing the pipeline from being built is the New York State Dept. of Environmental Conservation. They need to issue what is called a 401 Water Quality Certificate that allows the pipeline to cross streams, swamps and other bodies of water. It is a no-brainer. Yet the DEC is withholding the certificate. MDN received an appeal from the Constitution to show our support–to add our name to a list of people supporting the project (to send a message to Gov. Cuomo). We have, and we’re encouraging you to do the same…
Read More “Time to Force NY DEC to Issue Permit for Constitution Pipeline”
Energy Companies | Exxon Mobil

Exxon: We DO Believe in Mythical Global Warming! We Do We Do!
October 22, 2015October 22, 2015

We find it kind of funny, and kind of sad, that the mighty Exxon Mobil is reduced to groveling like they did yesterday in a press release in which they say, in essence, “We DO believe in global warming. We do we do we do!” Apparently the company was stung by criticism from from a couple of radical anti-fossil fuel rags–InsideClimate News and the Los Angeles Times–and by follow-on criticism from four communists, two in the United States Senate and two in the House of Representatives: Sen. Bernie Sanders (running for president), Sen. Sheldon Whitehouse, Rep. Ted Lieu and Rep. Mark DeSaulnier. What? Communists in our own government? No, we’re not mistaken nor are we using hyperbole. We’re using accurate language. Look up the definition of communism and tell us we’re wrong. Radical environmentalism is the new home of communism and these four politicians are disciples of that philosophy. Following mischaracterizations of Exxon’s true believer status by the anti-fossil fuel rags, the four commie pols piled on, so Exxon, the largest publicly traded oil & gas company in the world (so they claim), felt it had to defend it’s true-believer status in a press release, which is really kind of pathetic…
Read More “Exxon: We DO Believe in Mythical Global Warming! We Do We Do!”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 22, 2015
October 22, 2015October 22, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: fracking pays to extend waters lines in rural areas; OH Utica has 1,614 drilled wells, 1,022 producing wells; Portage County, OH votes to ban injection wells; rest of OPEN pipeline goes live Nov 1; Dave Spigelmyer says PA drillers struggling for survival; VA court case against pipeline; White House approves FL CNG export facility; Chesapeake fined $2.1M for inaccurate royalty reports on fed land; and more!
Read More “Marcellus & Utica Shale Story Links: Thu, Oct 22, 2015”
About MDN | Industrywide Issues | Maryland | New York | Ohio | Pennsylvania | Research | Statewide MD | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Databook Vol. 2: List of 101 Infrastructure Projects Worth $83B!
October 21, 2015November 2, 2015

MDN has just published Volume 2 of the 2015 Marcellus and Utica Shale Databook. In 90 jam-packed pages you will get the latest information on what’s happening (or not happening) with drilling in the Marcellus/Utica region. Much of the Databook is a series of county maps–one map for each county where there’s permit activity for Marcellus or Utica drilling. Each county maps shows a dot for where a permit was issued–along with the name of the driller next to it. The maps also show major natural gas pipelines and compressor stations. Each map offers you a quick, visual way of understanding where drilling is happening, and who’s doing the drilling. In addition, MDN editor Jim Willis spent several weeks compiling and completely revising a list of major pipeline and infrastructure projects happening throughout the northeast (and Midwest)–any project that affects takeaway capacity in the Marcellus/Utica. Jim found 101 projects in this updated list (sample below). If all projects get built, it represents a flabbergasting $83 billion worth of investment! The 3-volume series is just $350 (single volumes are $225). All three volumes are meant to work together. This is the PERFECT resource for drillers, pipeline companies, law firms, landmen and many others. Take a look at our sample pages below…
Read More “Databook Vol. 2: List of 101 Infrastructure Projects Worth $83B!”
CNG/LNG | Industrywide Issues

Florida Co. Building Big CNG “Mother Station” in Marcellus Region
October 21, 2015October 21, 2015

A harbinger of things to come? Just two days ago MDN reported on an upstate New York paper mill that converted to using natural gas to operate the mill and decided to stick with trucked compressed natural gas (CNG), something called a “virtual pipeline,” instead of going through the hassles of building a permanent pipeline (see NY Paper Plant Opts for “Virtual” NatGas Pipeline Over Real One). On the heels of that announcement we have a second virtual pipeline announcement. A company based in Florida called Pentagon Energy announces they’ve just scored their first contract–in the Marcellus Shale–to build a CNG “Mother Station” (think central hub) that will truck 2.5 billion cubic feet (Bcf) of CNG per month to customers throughout the northeast. It is another virtual pipeline to customers not served by a real pipeline. We find this an exciting development with the power to mute some protests over pipelines. So who is Pentagon Energy and who is their first, big customer?…
Read More “Florida Co. Building Big CNG “Mother Station” in Marcellus Region”