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    Noble Energy 3Q15: Marcellus Prod. Up 50%, 1st Utica Well Drilled

    but wait there's moreNoble Energy is a global driller involved in a number of shale plays in the U.S. including the DJ Basin, Eagle Ford Shale, Delaware Basin and Marcellus Shale. Noble idled the last remaining drilling rig they were operating in the Marcellus in September (see Noble Energy to Idle Remaining Marcellus Rig Next Month). Even so, they had a banner third quarter in the Marcellus. Noble issued their third quarter update yesterday and although the section on their Marcellus operations is brief (read it all below), it packs a punch. Even with reducing rigs to zero, Noble completed and brought online their first Utica Shale well (in Marshall County, WV). Noble’s production volumes in the Marcellus in 3Q15 rocketed to 493 million cubic feet of natural gas equivalent per day (MMcfe/d), more than a 50% increase over 3Q14 numbers. But wait, there’s more!…
    Read More “Noble Energy 3Q15: Marcellus Prod. Up 50%, 1st Utica Well Drilled”

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    Dominion 3Q15: Progress on Atlantic Coast Pipeline, Cove Point LNG

    progressYesterday Dominion, a huge utility/pipeline company operating in 13 states and organized into multiple corporations, released their third quarter 2015 update. Frankly, the official press release was pretty boring and short–concentrating on the financials. Our chief interest is on the operations side–tell us about the projects under way. So we went trolling through a transcript of yesterday’s investors conference call and sure enough, came up with gold. Tom Farrell, CEO of Dominion, had quite a bit to say in his prepared remarks about the Atlantic Coast Pipeline, the Cove Point LNG export plant, and even about “farmouts” of Utica acreage. Farrell said that surveying is 85% complete for the Atlantic Coast Pipeline, and engineering is 75% complete with some contracts for pipe already awarded. Farrell said that overall, the Cove Point project is now 47% done and there are 1,300 workers on site now. Exciting! But what’s this business about farmouts?…
    Read More “Dominion 3Q15: Progress on Atlantic Coast Pipeline, Cove Point LNG”

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    Stone Energy 3Q15: Shut Down 110 Mmcfe/d of Marcellus Production

    shutdownStone Energy, an independent oil and natural gas exploration and production company (E&P) headquartered in Lafayette, Louisiana drills mainly in the Gulf of Mexico but also has a presence in the Marcellus/Utica Shale. Earlier this year the company released the one active Marcellus rig they were running and said they would not resume drilling in the northeast until receiving a hybrid rig in late 2015/early 2016 that can drill both Marcellus and Utica wells (see Stone Energy 1Q15: No New Marcellus Drilling, But More Production). In September Stone said they were shutting in most of their production in the Marcellus/Utica (see Stone Energy Shuts in Most of their WV NatGas Production). And indeed they did. Yesterday Stone released their third quarter 2015 update and it shows the company turned off the spigots in their northeast operations, cutting out all 100-110 million cubic feet equivalent per day (Mmcfe/d) of production in what they call their Mary field. The company continued to produce 20-25 Mmcfe/d from their Heather and Buddy fields (in the Marcellus). Here’s the latest update from Stone Energy…
    Read More “Stone Energy 3Q15: Shut Down 110 Mmcfe/d of Marcellus Production”

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    Rex Energy 3Q15: Production Up 14% from 3Q14, Down 6% from 2Q15

    missing puzzle pieceRex Energy, a pure play driller focused totally on the Marcellus/Utica, released their third quarter production and price realizations update yesterday. It is a short update (below) that does not include Rex’s financials. We’ve seen this with a few companies–they release what is typically the “good news” first and then the other shoe drops a few weeks later. So we’ll keep a sharp eye out for Rex’s financial update when that gets published. In the meantime, Rex’s production in 3Q15 was up 14% from 3Q14, but down slightly–6%–from 2Q15 (last quarter). Rex explains why…
    Read More “Rex Energy 3Q15: Production Up 14% from 3Q14, Down 6% from 2Q15”

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    Marshall County Commissioner Still Opposes $615M Electric Plant

    say what you meanIn August 2014 the Marshall County, WV board of commissioners (a 3-person board) voted to approve a plan to build a Marcellus Shale-powered electric plant in the county (see Marshall County Votes to Accept Gas-Powered Electric Plant). The vote was a bit complicated. In a nutshell, Moundsville Power, a company owned by developers from Buffalo, NY, proposed a deal to the county. They want to build a 549-megawatt plant costing $615 million. But if Moundsville owns the plant, it’s subjected to high property taxes. Moundsville proposed selling the plant to the county but running it for them. In essence the county will own the plant on paper. Because it’s county owned, no property taxes! However, Moundsville would make rental payments to the county–or payments in lieu of taxes (PILOT). The payments would not be as much as if it were taxed–about $13 million less over 30 years. But the county still gets $31 million over those 30 years–and $31M is a whole lot better than $0. Moundsville would not have built the plant at all if not for the PILOT arrangement. One of the three commissioners, Bob Miller, voted against the plan. Now he’s trying to convince the state legislature to overturn the PILOT plan, although he says he still wants the deal with Moundsville to go forward…
    Read More “Marshall County Commissioner Still Opposes $615M Electric Plant”

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    WVU Professor “All In” on Obama’s Coal-Killing Clean Power Plan

    James Van Nostrand
    James Van Nostrand

    When liberal Democrat James Van Nostrand, director for West Virginia University’s Center for Energy and Sustainable Development, associate professor of law at West Virginia University, and a man-made global warming Kool Aid drinker addressed a recent forum at Wheeling Jesuit University, he told the audience they should just accept President Obama’s Clean Power Plan (CPP) and its death sentence for the coal industry. He essentially said “just get over it and move on. Lie down and admit defeat.” It put a smile on Van Nostrand’s face that WV Gov. Earl Ray Tomblin has appeared to cave and will pursue a plan to comply with our Dear Leader’s CPP directive, even though 26 states have sued to stop the plan, including WV (see 26 States Ask Federal Court to Shut Down Clean Power Plan Now). Here’s an overview of Van Nostrand’s “just admit you’ve been beaten” speech…
    Read More “WVU Professor “All In” on Obama’s Coal-Killing Clean Power Plan”

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    New BP Technology Report Predicts O&G Supplies will Double by 2050

    researchPeak Oil theorists like Art Berman won’t be happy with the latest report just published by oil giant BP. BP and other large energy companies publish annual energy outlook studies that we’ve highlighted in the past (see BP’s Annual Energy Report: Smallest Demand Increase since 1990s). For the first ever, BP has just published a report called the BP Technology Outlook (full copy below) that reveals much of their internal research on new technologies that will keep energy supplies plentiful and affordable, “enough to meet projected demand many times over” according to the study’s authors. While BP pays much lip service to so-called renewable sources of energy in this new study, here’s the part that will give Berman and other Peak Oil fanatics heartburn: “applying today’s best technologies to discover oil and gas resources could significantly increase ‘proved reserves’ from 2.9 trillion barrels of oil equivalent to 4.8 trillion barrels – nearly double the 2.5 trillion barrels required to meet projected cumulative global demand through to 2050.” Did you catch that? New tech available today can and will double the amount of recoverable oil and gas. So much for Peak Oil and Gas! We’re awash in it and will remain so for generations…
    Read More “New BP Technology Report Predicts O&G Supplies will Double by 2050”

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    OH Landowners File Royalty Class Action Lawsuit Against Chesapeake

    lawsuitA group of Ohio landowners is doing what others have previously done in Pennsylvania, Texas and elsewhere–they’ve filed a proposed class action lawsuit against Chesapeake Energy claiming Chessy has screwed them and about 1,000 other Ohio landowners out of a collective $30 million in royalty payments. The lawsuit was filed last Monday in Columbiana County Common Pleas Court (copy embedded below) by an Akron, OH woman and the owners of two Columbiana County farms. In addition to Chesapeake, French company Total E&P USA, Pelican Energy LLC and Jamestown Resources LLC were also named in the lawsuit. The plaintiffs claim the only allowed deduction from royalties, according to signed leases, is for taxes–not for drilling expenses, not for post-production costs, etc. The lawyers filing the lawsuit figure there are at least 1,000 landowners with 40,000 acres who have been negatively affected by Chesapeake’s royalty shenanigans…
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    Philly Enviro-Nazis Attack Dem Councilman for Visiting Drill Site

    geenaziA story in Philadelphia Magazine perfectly illustrates the Nazi-like control freaks that inhabit anti-fossil fuel organizations like Food and Water Watch and the fringe group Action United. Philadelphia City Councilman Curtis Jones Jr. is a bone fide, card-carrying liberal Democrat. In 2011 Jones called for a fracking moratorium in the Delaware River Basin. Since that time Jones has actively advocated for no fracking/drilling in the Philadelphia region. Four years ago the Marcellus Shale Coalition invited Jones (and others) to tour a drilling rig, to see how it’s done. At the time, he declined. It’s always so much easier when you stick your head in…the sand. But Jones is a member of the Philadelphia Gas Commission, the group that oversees the city-owned Philadelphia Gas Works (PGW). A recent audit recommends PGW buy more Marcellus Shale gas (see Expensive Audit Tells PGW to Buy More PA Shale Gas to Save Money). So Jones, being on the Gas Commission responsible for overseeing PGW, felt it would be worthwhile to go ahead and take that rig tour and learn the facts for himself first-hand rather than relying on second-hand opinions. So Jones agreed to attend a tour last Friday. He even allowed his name to be put on the invite to encourage others to “go see for yourselves” just what happens at a drilling rig. And that, dear reader, is anathema to the wackos at groups like Food and Water Watch, the Sierra Club, THE Delaware Riverkeeper, Action United, on and on and on. Actually touring a rig and learning that this activity is safe, and advantageous, and not the environmental holocaust it’s made out to be? That blows their lies right out of the water and they can’t have that. And so Food and Water Watch, along with Action United, attacked one of their own–Curtis Jones–for the simple act of visiting a drill site to see it for himself…
    Read More “Philly Enviro-Nazis Attack Dem Councilman for Visiting Drill Site”

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    Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp

    Cow Knob Salamander
    Cow Knob Salamander

    Contrary to what anti-fossil fuelers would have you believe, midstream companies building big pipeline projects DO listen to concerns and they DO change the route of a pipeline to address those concerns–like changing the route to minimize environmental impacts or to address the concerns of landowners. For example, Dominion has just announced it filed route changes for the Atlantic Coast Pipeline, a $5 billion natural gas pipeline running from West Virginia through Virginia and into North Carolina. The changes are made to minimize impacts on salamanders in two locations, to minimize impacts on a historic district, and to avoid crossing a swamp (yes, a swamp). Somewhere along the way in the past 30 years swamps became precious ecological assets instead of pools of stagnant, smelly, mosquito-infested water that need to be drained (go figure). Dominion is willing to play along. “Hey, if that smelly swamp is important to you, we’ll spend an extra $XX million and go a different route.” Dominion is not alone. Theirs is just the latest example that totally refutes the yarns spun by ninny nanny antis who blat about evil Big Pipelines and how they destroy everything. Here’s the latest “we’ll make some adjustments to the route to keep everyone happy” notice from Dominion…
    Read More “Dominion Files Pipeline Route Change to Avoid Salamanders, Swamp”

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    DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits

    takeoverIt was just two weeks ago that MDN posted an article saying the New York Dept. of Environmental Conservation (DEC) has had enough time to approve stream-crossing permits for the much-needed Constitution Pipeline. It’s now time to force their hand (see Time to Force NY DEC to Issue Permit for Constitution Pipeline). As we wrote in that piece, the DEC risks the very real threat that the Federal Energy Regulatory Commission (FERC) may step in and force the DEC to issue the permits. Now a high-ranking official with the DEC has essentially said the same thing we did–on the record…
    Read More “DEC Official Says NY in Danger of FERC Taking Over Pipeline Permits”

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    PA Marcellus Gas Claims a Nuclear Scalp in Central NY

    FitzPatrick Nuclear Plant
    FitzPatrick Nuclear Plant

    Low-cost Marcellus Shale gas has just taken out a nuclear plant in New York State. Entergy, owner of the James A. FitzPatrick Nuclear Power Plant in Scriba, NY, says they will shut down the plant in 2016 or 2017 because of the “continued deteriorating economics of the facility” and because of “significantly reduced plant revenues due to low natural gas prices, a poor market design that fails to properly compensate nuclear generators like FitzPatrick for their benefits, as well as high operational costs.” The FitzPatrick Nuclear Power Plant generates 838 megawatts of electricity, enough to power more than 800,000 homes, and employs 600 people in Oswego County, NY. Essentially over-regulation that drives up costs have shut it down. The question now is, where will those 800,000 homes get their electricity? Oh, they won’t go dark. But they will begin to pay much higher prices for their electricity than they do now. Unless a new natgas-fired electric plant opens up…
    Read More “PA Marcellus Gas Claims a Nuclear Scalp in Central NY”

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    OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!

    tax revenueIn a somewhat related story posted today, MDN tackles the thorny issue of taxing pipelines in Pennsylvania. As serendipity would have it, last week Energy in Depth posted an excellent article on the financial impact pipelines are having in Ohio. Would you believe it if we told you that not only will an astounding $8 billion be spent to build new pipelines in the Buckeye State in 2016, but also an estimated $360 million in ad valorem property taxes (taxes on pipelines) will roll in to local municipal coffers. Next year. And every year thereafter! Here’s the numbers broken down by who is doing the spending and paying the taxes, and which pipelines will generate the most economic activity in Ohio next year…
    Read More “OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!”

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    Is it Time to Tax Big Pipelines in PA?

    is it time yetAn Associated Press (AP) story appearing in multiple newspapers and in online outlets has returned to the meme of how unfair it is that pipelines in Pennsylvania are not taxed, as they are in other states like New York, Ohio and West Virginia. Perhaps they have a point? No, MDN isn’t going “soft”! We’ve long made the argument that a permanent structure in the ground should benefit landowners beyond a one-time, up-front payment (see the suggestion by Bryant LaTourette made at the Constitution Pipeline scoping hearing in April 2014: Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The counter to landowners receiving ongoing royalties for pipelines is the argument of electric power lines. They run everywhere over people’s property. You can’t build a structure under or near such lines once they are in place. Yes, they can be taken down/removed (i.e. not “permanent”), but when was the last time that happened? Landowners are not given an ongoing royalty for the electricity flowing through power lines that criss cross their land. Why would you grant an ongoing payment/royalty for a pipeline in the ground if you don’t for a power line above the ground? You see this is a thorny, complex issue. Although individual landowners in states like New York don’t receive an ongoing royalty for pipelines, the pipelines themselves are considered property and pipeline companies are taxed for having them in the ground, giving a community-wide benefit to all residents in a town or village. We’ve remarked before that the property taxes where we live (in NY) have gone DOWN because of a local pipeline. When’s the last time you heard about taxes going down in New York State?! In Pennsylvania, pipelines are NOT taxed, and therefore taxpayers in those communities don’t benefit. That’s the bone of contention…
    Read More “Is it Time to Tax Big Pipelines in PA?”

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    Dartmouth Research: Fracking’s Benefits Extend Hundreds of Miles

    crickets chripingIt’s always fascinating for us to see which universities tout the research papers published by their professors and students, and which don’t. And which papers they decide to promote, and which they don’t. Publish a study that knocks fracking as somehow damaging the environment? That’s worth a full-blown press release and calls to the New York Times to see if you can get some juicy PR. Publish a paper that concludes, oh, the economic benefits of fracking actually extend out for hundreds of miles? Not a peep. In fact such a study was released by Dartmouth researchers called “Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution” (full copy below). The report concludes: “Every million dollars of oil and gas extracted produces $66,000 in wage income, $61,000 in royalty payments, and 0.78 jobs within the county. Outside the immediate county but within the region, the economic impacts are over three times larger. Within 100 miles of the new production, one million dollars generates $243,000 in wages, $117,000 in royalties, and 2.49 jobs.” You might think such good news would be emblazoned on major newspapers across the country. Nope. Nothing. Nada. Zippo. That kind of objective research, that finds fracking benefits society, doesn’t fit the liberal bias of mainstream media. So they ignore it. If they don’t cover it, it essentially doesn’t exist. What a shame…
    Read More “Dartmouth Research: Fracking’s Benefits Extend Hundreds of Miles”