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Marcellus Drilling News
  • Anti-Drilling/Fossil Fuel | Energy Services | Fulton County | Industrywide Issues | Kinder Morgan | Medina County | NEXUS Pipeline | Ohio | Pipelines | Regulation | Tennessee Gas Pipeline

    Intervenor Contagion Catching on with Radical Green Groups in NE

    January 5, 2016January 5, 2016

    Like a contagion moving through the small-but-dedicated anti-fossil fuel movement in the northeast, the strategy of filing as an “intervenor” in pipeline permitting is catching on. MDN first alerted you to this sleazy tactic being used by THE Delaware Riverkeeper back in October 2015 (see Delaware Riverkeeper Scams FERC in Review of PennEast Pipeline). In short, the Federal Energy Regulatory Commission (FERC) has a process known as a motion to intervene. Individuals, towns and organizations with a vested, *legitimate* interest can file to “intervene” in a pipeline project application, which gives them special standing to receive updates from FERC and to ensure their views are fully considered by FERC. THE Delaware Riverkeeper and others began registering everyone–including their own children–as “intervenors” which essentially overloads FERC’s system and greatly slows down the permitting process (ses FERC Confirms “Intervenors” Slowing Down Pipeline Approvals). It is an abuse of the system–but then anti groups are no strangers to violating the rules, or laws. They revel in “catch me if you can” behavior. Intervenor abuse is catching in Massachusetts where radical greens are trying the same tactic to slow down approvals for the Tennessee Gas Pipeline’s Northeast Energy Direct (NED) project. Radical greens in Ohio are also using the tactic to try and slow down approvals for the NEXUS pipeline there. The intervenor contagion has now spread from PA to MA to OH, with no end in sight…
    Read More “Intervenor Contagion Catching on with Radical Green Groups in NE”

  • Electrical Generation | Energy Services | FirstEnergy | Greene County (PA) | Industrywide Issues | Pennsylvania

    Greene County, PA Electric Plant May Reopen Using Marcellus Gas

    January 5, 2016January 5, 2016

    Ohio-based utility FirstEnergy Corp. shuttered a huge coal-powered electric plant in Greene County, PA in 2013–a move that surprised many. FirstEnergy is making plans to reopen the 1,700 megawatt plant–but this time it will not only burn coal, but yummy, cheap, clean-burning Marcellus Shale gas too…
    Read More “Greene County, PA Electric Plant May Reopen Using Marcellus Gas”

  • Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

    Mass. Green Radicals Plan 3-Day, 34-Mile Pipeline Walk-a-Thon

    January 5, 2016January 5, 2016

    About 20 radical green protesters in Massachusetts who oppose a pipeline in the ground because it will flow a fossil fuel–natural gas–are planning a 3-day, 34-mile walk-a-thon along a small portion of the pipeline’s pathway. And it’s big news for newspapers in that part of the country. Go figure. We suppose when you get a bunch of kooks and crackpots together it may sell a few more newspapers than reporting on the happenings at the local town board meeting (snore). So why not? The Greenfield, MA Recorder is reporting that monks from the Leverett Peace Pagoda (local Buddhist shrine) will lead a 3-day walk to oppose the Tennessee Gas Pipeline Northeast Energy Direct (NED) project that would deliver abundant, cheap, clean-burning Marcellus Shale gas to New England, ultimately leading to not only lower natgas prices but lower electricity prices. New England pays four times the rate for their electric that other parts of the country pay. Apparently the protesters want to keep it that way permanently. The monks and other green radicals planning the walk will do so in the name of the great Martin Luther King, because (they claim) King was a green radical like they are…
    Read More “Mass. Green Radicals Plan 3-Day, 34-Mile Pipeline Walk-a-Thon”

  • Industrywide Issues | Pennsylvania | Public Opinion | Statewide PA | Taxation

    57% of Pennsylvania’s CPAs Favor a Marcellus Tax – Surprised?

    January 5, 2016January 5, 2016

    Each year the Pennsylvania Institute of Certified Public Accountants (PICPA) conducts a poll of its membership. Last year PA accounts answered the question “How should PA close the state budget gap?” by indicating the state should privatize liquor sales – 69%, by instituting a Marcellus Shale severance tax – 67%, and by legalizing pot smoking – 27% (see PA Accountants Love Marcellus Severance Tax (and Smoking Pot)). This year’s PICPA poll results have just been published. Perhaps it was our criticism and poking fun at the absurdity of the question last year–but this year the question changed. This is the question they asked this year of PA accountants: “Pennsylvania faces a structural budget deficit estimated at nearly $2 billion. Which of the following should the state use to close the deficit?” The #1 preferred solution for PA’s accountants? A Marcellus Shale severance tax–57% favor it. As we said last year, does anyone else find it suspicious that the people who would have to manage and file reams of tax forms on a severance tax (generating lots of billable hours) are in favor of such a tax? Can anyone say, conflict of interest? Why do we care a wit about what CPAs think about taxes and budget deficits? They’re the ones who helped create it!…
    Read More “57% of Pennsylvania’s CPAs Favor a Marcellus Tax – Surprised?”

  • Industrywide Issues | Public Opinion | Research

    Industry Navel Gazing – Survey, Opinions of What’s Ahead in 2016

    January 5, 2016January 5, 2016

    MDN spotted a couple of “what’s coming in 2016” reports. One report shares conclusions from a survey of 100 oil and gas company CFOs (Chief Financial Officers, or “the money guys”) conducted in September/November last year. What do industry money people say is coming in 2016? Read it below. The second report was just issued by Moody’s Investors Service. Several Moody’s analysts offer their predictions about what lies ahead for the oil and gas industry this year. We call these kinds of reports “industry naval gazing” as they tend to be focused on our specific piece of the energy industry (oil and gas) to the exclusion of the complex world that exists outside of our own industry. Still, such reports have their place and can often shed light on what may lay ahead on the road we will all travel on the way to 2017…
    Read More “Industry Navel Gazing – Survey, Opinions of What’s Ahead in 2016”

  • Energy Services | Enterprise Products Partners

    Enterprise Prod. Raises $100M via Unit Sale, Plans Another $200M

    January 5, 2016January 5, 2016

    Enterprise Products Partners is a big (really big) midstream/pipeline company. Enterprise built and operates the 1,230-mile ATEX (Appalachia-to-Texas Express) ethane pipeline runs from four fractionation plants in the Marcellus/Utica Shale region all the way to Mount Belvieu, TX. As we noted in an article yesterday, Enterprise has just completed and brought online a new pipeline that will potentially flow some of that Marcellus/Utica ethane all the way to Louisiana (see Marcellus/Utica Ethane can Now Hitch a Ride to LA via Aegis Pipe). As all companies in our sector attempt to not only expand, but simply survive, they use different methods. In some cases they sell debt in the form of IOUs (i.e. notes) or bonds, and in other cases they sell pieces of the company, typically stocks. Or in the case of master limited partnerships (MLPs), they sell “units” which are the equivalent of stocks. Enterprise is an MLP and has just sold $100 million worth of units with plans to sell another $200 million worth of units in the first quarter of this year, for a total of $300 million in cold, hard cash they can put to work in the company…
    Read More “Enterprise Prod. Raises $100M via Unit Sale, Plans Another $200M”

  • Hydraulic Fracturing | Industrywide Issues

    5 Fracking Truths Mainstream Media Missed in 2015

    January 5, 2016January 5, 2016

    Andrew Follett, the energy and environmental reporter for the online publication The Daily Caller, published an article on Dec. 31 that highlights five truths about hydraulic fracturing and shale energy that mainstream media missed in 2015. Here are Andrew’s five great points…
    Read More “5 Fracking Truths Mainstream Media Missed in 2015”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Tue, Jan 5, 2016

    January 5, 2016January 5, 2016

    The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Marcellus/Utica rig counts way down; Maryland county ponders drilling restrictions in state where there is no drilling; OH Supremes to hear arguments in 2 important o&g cases; unintended consequences with ending crude ban; Raymond James says natgas prices “seemingly hopeless”; RBN makes predictions for 2016; big oil cutting investments in 2016; and much more!
    Read More “Marcellus & Utica Shale Story Links: Tue, Jan 5, 2016”

  • About MDN

    Top 10 Most-Read MDN Stories of 2015

    January 4, 2016January 4, 2016

    top-10.jpgThank you for an awesome 2015 at the Marcellus Drilling News blog/news site. You, our dear readers, made it a terrific year. Truth to tell we lost a few subscribers overall in 2015 due to the severe downturn in the drilling marketplace. Some people who work in the industry lost their jobs and did not re-subscribe. Some landowners moved away or otherwise gave up hope that they will see drilling any time soon. But you know, we can’t complain. Many (many!) of you hung in there with MDN for another year. Editor Jim Willis pledges that 2016 will see some much-needed improvements with the design of the site, essentially unchanged since we began it in 2009, and with new product offerings. Stay tuned! In the meantime, we’d like to reflect back on 2015. Everyone else, it seems, has run a “top 10” article list for 2015, so why don’t we? Below are the top 10 most-read stories of 2015 on the MDN web site. But first, a few raw numbers. In 2015 the MDN site received 785,120 “user sessions” (or visits) made by 388,239 different, unique people. Those people viewed 1,496,910 pages on the site, almost all of those pages being articles. Not too shabby if you ask us–that a niche publication like MDN garners more than one-third of a million people viewing 1.5 million pages of content. We know of large circulation magazines that would kill for those numbers! Now, on to the top 10 articles those one-third of a million people viewed the most…
    Read More “Top 10 Most-Read MDN Stories of 2015”

  • Eclipse Resources | Energy Companies | Northeast Natural Energy

    2 Rigs Reactivated – One in WV, the Other in OH

    January 4, 2016January 4, 2016

    Another rumor to share–from a good source, a source we believe. Last week this same source told us that a new Utica driller was beginning operations in Tioga County, PA (see The 411 on New Driller Firing Up Rig in Tioga County, PA). The new rumor? There are two more rigs reactivating–one in West Virginia and the other in Ohio. Here’s who’s beginning to drill again…
    Read More “2 Rigs Reactivated – One in WV, the Other in OH”

  • Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA

    PA AG’s Lawsuit Derails Demchak/Chesapeake Royalty Settlement

    January 4, 2016January 4, 2016

    In March 2015 MDN reported on the “Demchak” royalty case in which a group of Pennsylvania landowners had agreed to a settlement with Chesapeake over Chessy’s alleged shorting of royalty payments (see Chesapeake’s PA Royalty Settlement Affects Some, Not All Landowners). As we reported at the time, “several thousand” landowners sharing two-thirds of the $11 million settlement (the other one-third going to the lawyers) didn’t seem all that great a deal to us. But we’re not PA landowners with a dog in this fight. Toward the end of last year the issue got heated again as landowners (many landowners) were faced with a decision of whether or not to opt out of the settlement (see Packed Meeting in Towanda Discusses Chesapeake Royalty Settlement). Then along came PA Attorney General Kathleen Kane, herself under indictment for felony crimes, with her own lawsuit against Chesapeake over the royalty issue (see PA Atty General Sues Chesapeake Energy, Williams for Royalty Fraud). It seems Kane’s lawsuit has now put the brakes on the Demchak settlement that was supposed to have taken place in early February. That plan is now delayed…
    Read More “PA AG’s Lawsuit Derails Demchak/Chesapeake Royalty Settlement”

  • Atlas Energy | Energy Companies

    Atlas Energy Luck Run Out? NYSE Threatens Company with De-Listing

    January 4, 2016January 4, 2016

    Atlas Energy, a once-major driller in the Marcellus Shale, sold much of their Marcellus operations to Chevron in 2011 (see India’s RIL Loses Bidding War for Atlas Energy – $4.3 Billion Deal with Chevron Goes Forward). The Cohen family that runs the company is interesting and colorful. They bought into the company in the 1990s and happened to be in the right place at the right time, just prior to the discovery of the Marcellus (see The Unconventional Rise & Sale of Atlas Energy). In October 2014, the Cohens did it again. Talk about perfect timing! The Cohens sold more of what was left–for a truly astonishing $7.7 billion–to Targa Resources Partners, just prior to the crash of natgas prices (see Atlas Energy/Pipeline Sells Itself (Again) – for $7.7 BILLION!). What’s left now? With respect to the Marcellus, we don’t think there’s much left. But Atlas still does own operating interests in Marcellus wells. It looks like maybe the Cohen family’s good luck may have run out. The New York Stock Exchange has issued Atlas a notice that unless it’s stock price and market capitalization goes up, the NYSE will de-list the company from the exchange…
    Read More “Atlas Energy Luck Run Out? NYSE Threatens Company with De-Listing”

  • Energy Services | Enterprise Products Partners | Ethane | Industrywide Issues | Pipelines

    Marcellus/Utica Ethane can Now Hitch a Ride to LA via Aegis Pipe

    January 4, 2016January 4, 2016

    Last week Enterprise Products Partners reported completing the remaining portion of the Aegis ethane pipeline that runs from Lake Charles, Louisiana to Napoleonville, Louisiana. Aegis is now online and flowing ethane. And that’s good for the Marcellus/Utica. Wait….what? Why is an ethane pipeline built in LA good for the northeast? Because that pipeline will almost certainly be flowing ethane from the Marcellus/Utica. Here’s the connection…
    Read More “Marcellus/Utica Ethane can Now Hitch a Ride to LA via Aegis Pipe”

  • Energy Companies | EnerVest | Industrywide Issues | Jobs | M&A | Range Resources Corp | Statewide VA | Virginia

    Range Res. Completes Sale of VA Assets to EnerVest, 55 Lose Jobs

    January 4, 2016January 4, 2016

    In November MDN reported that Range Resources would sell 3,500 operated wells and approximately 460,000 net acres in the Nora/Haysi combined fields located in southwestern Virginia for $876 million to an unnamed buyer (see Range Sells Coal Bed Methane Wells in VA, Focusing on Marcellus). The stated reason for the sale is to pay down debt and use the money for more Marcellus drilling. The deal is done and dusted. The final price turned out to be $865 million, $11 million less than announced. Although Range has remained tight-lipped about who the buyer was, EnerVest admitted they are the buyer. At the time Range first announced the impending sale, they issued a WARN notice that up to 158 people would lose their jobs when the sale was completed (see 158 Range Resources Employees in SW VA May Lose Jobs by Dec 30). The sale was completed on Dec. 30, but fortunately not all 158 jobs were axed. “Only” 55 jobs were axed while 103 people were extended offers to work for EnerVest. Of course the 55 people who lost their jobs had a sucky Christmas…
    Read More “Range Res. Completes Sale of VA Assets to EnerVest, 55 Lose Jobs”

  • Energy Services | Industrywide Issues | Litigation | New York | Regulation | Statewide NY | Williams

    Time for Williams/FERC to Sue NY & End Constitution Pipe Delays

    January 4, 2016January 4, 2016

    In October of last year MDN added our name to the effort to pressure Gov. Andrew Cuomo to let his Dept. of Environmental Conservation (DEC) move forward with granting water-crossing permits for the much-needed Constitution Pipeline (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). The corrupt Andrew Cuomo is up to his old tricks–delay and eventually deny. The time has now come to force the issue. A DEC official has admitted his agency is on the precipice. If they don’t issue the permit for the Constitution, New York is in danger of a federal takeover in granting such permits (see DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits). We say that time has now come. It’s time for the Federal Energy Regulatory Commission to use its power to override New York and issue the permit and forever sideline Cuomo’s corrupt administration from playing a role in such issues. It’s also time for Williams to man-up and ue New York and go negative against “the Empire State.” That is the theme and MDN friend Tom Shepstone’s latest excellent article (from Natural Gas Now), which we’re re-posting here on MDN. We’ve seen this movie before with fracking. Cuomo intends to deny this pipeline and now is the time to fight it for all it’s worth, using every legal means possible to move forward with building the Constitution…
    Read More “Time for Williams/FERC to Sue NY & End Constitution Pipe Delays”

  • Industrywide Issues | Ohio | Regulation | Statewide OH | Taxation

    OOGA’s 2015 Year in Review: No Hike in OH Severance Tax in 2016

    January 4, 2016January 4, 2016

    David Hill, president of the Ohio Oil and Gas Association (OOGA), provides an enlightening “year in review” for 2015. As part of his summary of the issues facing the oil and gas industry in the Buckeye State, he offers this with respect to an impending increase in the severance tax: “I am pleased to report that it looks like we won’t have to discuss the severance tax for the next year or so.” Good news indeed for drillers in Ohio in 2016. As Hill says, the price of oil and natural gas have collapsed–oil because of a worldwide oversupply, and natural gas (in the northeast) because of lack of pipelines. Among the issues Hill tackles is the so-called Community Bill of Rights movement, unitization laws, and more. It’s a good read…
    Read More “OOGA’s 2015 Year in Review: No Hike in OH Severance Tax in 2016”

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