Marcellus Drilling News

CNG/LNG | Industrywide Issues | New York | Saratoga County

A “Virtual Pipeline” for NatGas Goes Live in Upstate New York
December 11, 2015December 10, 2015

We’ve written about the concept of a “virtual pipeline” a couple of times before, in October (see NY Paper Plant Opts for “Virtual” NatGas Pipeline Over Real One and Florida Co. Building Big CNG “Mother Station” in Marcellus Region). The simplified version is this: Instead of laying a pipeline in the ground, which is more or less permanent, use trucks and even trains to transport compressed natural gas (CNG) to a central facility and from that facility distribute the gas–either by local pipelines or by trucks. Sort of a hub and spoke system applied to moving natural gas. We find it intriguing. For the second time in the past few months such a system is being created in New York State. But this time it’s being created by a large/major utility–New York State Electric & Gas (NYSEG). NYSEG is allowing new customers to sign up for natural gas in the Mechanicville (Saratoga County), NY area with the addition of a new “virtual pipeline” of CNG trucks that deliver CNG to a centralized facility in town. Here’s how that gas will help Mechanicville economically expand and provide new jobs…
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Exporting | Industrywide Issues

US Will be Net Gas Exporter Starting Next Year, Thx to Marcellus
December 11, 2015December 10, 2015

An economist with Credit Suisse said on Wednesday that the data shows the U.S. will become a net exporter of natural gas beginning next year. Why? Look no further than the Marcellus/Utica where production is through the roof and drillers can’t find enough ways to move gas out of the northeast fast enough. From a Bloomberg article…
Read More “US Will be Net Gas Exporter Starting Next Year, Thx to Marcellus”
Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Anti-Pipeline Loons March on Concord Today – Play the Bagpipes!
December 11, 2015December 10, 2015

Break out the bagpipes! It’s time to get blasted and stumble down the streets of Concord, New Hampshire to show your love of Mother Earth and that you object to that evil, vile Northeast Energy Direct (NED) pipeline that will bring carbon-reducing, clean-burning, fracked natural gas to the Granite State. Protesters will assemble at the corner of Storrs and Theatre Street in Concord at 10:00 am this morning, and then stumble along for a half-mile while (no lie) bagpipers and drummers play. The goal–if they make it that far–is the State House where a bunch of “dignitaries” will deliver hate speeches against natural gas and pipelines and Big Oil and Gas and Satan and Donald Trump and whatever else they feel like railing against. Should be a real fun time…
Read More “Anti-Pipeline Loons March on Concord Today – Play the Bagpipes!”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Pipelines | Regulation

FERC Confirms “Intervenors” Slowing Down Pipeline Approvals
December 11, 2015December 10, 2015

As we’ve previously warned, anti-fossil fuel kooks are being effective in slowing down new pipeline projects by using a sleazy strategy of individually filing as “intervenors” in pipeline applications. An intervenor is supposed to be someone with a legitimate interest in a project who wants to provide data, information, opinion–and also someone (typically a group) that should be kept informed each step of the way what is happening with a pipeline application. Intervenors are usually towns, utility companies, large businesses, etc. In a scam and abuse of the system, antis are attempting to get all of their crazy followers–including children–to register as intervenors (see Delaware Riverkeeper Scams FERC in Review of PennEast Pipeline and Coordinated Attack? MassPLAN Uses Riverkeeper Pipeline Delay Tactic). It overloads the FERC system and slows down the approval process. Want proof? It comes directly from the mouth of a sitting FERC commissioner, Tony Clark…
Read More “FERC Confirms “Intervenors” Slowing Down Pipeline Approvals”
Energy Services | Industrywide Issues | Kinder Morgan | New York | Pipelines | Regulation | Schoharie County | Tennessee Gas Pipeline

TGP Gets FERC Pushback on Need for 2 NED Compressor Stations in NY
December 11, 2015December 10, 2015

Kinder Morgan and their Tennessee Gas Pipeline (TGP) subsidiary have gotten some pushback from the Federal Energy Regulatory Commission (FERC) over their planned Northeast Energy Direct pipeline plans in Schoharie County, NY. Kinder’s plans call for two different portions of the NED project–the Supply Path portion that comes from the gas fields of northeastern Pennsylvania to Schoharie County, and the Market Path portion that goes from Schoharie County into Massachusetts, New Hampshire, and back into Mass. near Boston. The two different pipelines in Schoharie will use two different compressor stations under Kinder’s existing plan. FERC wants to know why they cant’ be combined into a single compressor station to reduce footprint. FERC is giving Kinder 20 days to respond…
Read More “TGP Gets FERC Pushback on Need for 2 NED Compressor Stations in NY”
Electrical Generation | Industrywide Issues

Rockland, Maine City Council May Block NatGas Electric Plant
December 11, 2015December 10, 2015

In October MDN told you that the only nuclear power plant operating in Massachusetts, the Pilgrim Nuclear Power Station in Plymouth, MA, is closing down (see Massachusetts’ Only Nuclear Plant Closing – NatGas to the Rescue!). Which makes natural gas pipelines to the region all the more urgent and necessary. Natural gas is the only viable alternative fuel for producing electricity in New England. The region already has the highest electric rates in the country–typically four times that of other regions. Without more electrical generating plants, it’s not a choice of paying even more–it’s a choice of going without. As in brownouts and blackouts. The Pilgrim Nuclear Power Plant produces 680 megawatts of electricity. Every megawatt counts, so a company in Rockland, Maine, calling itself the Rockland Energy Center, has proposed building a new natural gas-fired power plant that would produce 35 megawatts of electricity. Some of the crazies who live in the town object because the plant will use a “fossil fuel” to power it–so City Council is set to consider a six-month moratorium on any new power plants to give them time to figure out how to permanently disallow such plants. Rockland Energy is talking about walking away from the community and taking the considerable amount of tax money they would pay with them. Talk about stupid people who sit on city councils!…
Read More “Rockland, Maine City Council May Block NatGas Electric Plant”
Energy Companies | Energy Services | Repsol | Williams

Marcellus Companies Among Winners at Platts Global Energy Awards
December 11, 2015December 10, 2015

Publishing company Platts held their annual Global Energy Outlook Forum yesterday on Wednesday in New York City. MDN editor Jim Willis has gone for the past couple of years–but this year Platts uninvited media, including MDN, to attend. So unfortunately we have no news for you from the Forum. However, Platts holds an evening award ceremony each year, following the Forum. It’s called the Platts Global Energy Awards and Wednesday was the 17th running of the awards. Energy companies from seven countries won 18 awards. One company, a company with a growing presence in the Marcellus/Utica, stole the show by winning three awards. That company was Repsol, the Spanish oil giant with a love affair with American shale. Here’s a recap of the event, and the list of winners…
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Energy Companies | Gulfport Energy | Ohio | Statewide OH

Gulfport Energy Gives $500K to Foundation for Appalachian Ohio
December 11, 2015December 10, 2015

Kudos to Gulfport Energy for making a half million dollar donation the Foundation for Appalachian Ohio (FAO). The grant money will support projects that increase quality of life, create access to opportunities, or identify and implement solutions to community needs in those communities where Gulfport drills. This is called giving back–and the right way to give back–in those areas where you operate. The details…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Dec 11, 2015
December 11, 2015December 10, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: NY AG pushes to stop oil trains; other operators may face charges from PA AG same as Chesapeake; proposed oil storage terminal in Pittsburgh “dead”; Chevron slashes 2016 drilling budget; Obama’s climate hypocrisy; the “social cost” of methane; and more!
Read More “Marcellus & Utica Shale Story Links: Fri, Dec 11, 2015”
Bradford County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Lease & Royalty Payments | Litigation | Pennsylvania | Statewide PA | Williams

PA Atty General Sues Chesapeake Energy, Williams for Royalty Fraud
December 10, 2015December 10, 2015

Pennsylvania Attorney General Kathleen Kane, who has been indicted on numerous felony charges and likely to be forced from office any day now, filed a lawsuit yesterday against Chesapeake Energy in Bradford County Court over the issue of shorting landowners out of royalties. What every story we’ve seen (thus far) misses is this: The lawsuit also names Williams as participating in the scheme to defraud landowners out of royalty payments. So this is not just a Chesapeake story, it’s a Williams story too. Landowner groups are “hailing” the decision, jumping up and down with glee. Let us throw a little cold water on your face. Note to landowners and the groups that represent them: When you (metaphorically) crawl into bed with Kathleen Kane, you’re crawling into bed with a rattlesnake. Sooner or later she’s going to turn on you too. Mark it down. It’s in her nature. With that disclaimer in place, we’ll break down the news for you, and show you a copy of the lawsuit Kane’s office filed yesterday…
Read More “PA Atty General Sues Chesapeake Energy, Williams for Royalty Fraud”
Chesapeake Energy | Commodity Price | Energy Companies | Industrywide Issues

1.1 Billion Barrels of Chesapeake Oil Disappear with a Keystroke
December 10, 2015December 10, 2015

Accounting is the “language of business.” Sometimes it appears to be spoken in a foreign tongue that is hard to understand. In addition to Chesapeake Energy’s major problems with lawsuits over royalties (see today’s top story about PA Attorney General Kane suing them), Chesapeake’s claim of how much oil (and gas) it can extract from its leased acreage, an important number on which loans are made, will decrease by an astonishing 45% this week. Poof! Nearly half what Chessy says is in the ground and available to extract just disappeared. How can that be? Accounting. In order to make a claim that “we have X barrels of oil, or X billion cubic feet of gas available to extract,” you have to be able to sell what you extract *at a profit* or it makes no sense to extract it and sell it. The formula drillers must use to prove they can extract it at a profit is set by the Securities and Exchange Commission. Because the price of oil and gas is low and not going up any time sooner, many companies, including Chesapeake, must now re-evaluate their numbers and restate their claims of how much inventory they have. And nearly half of Chessy’s inventory is now gone, with a few keystrokes and a spreadsheet formula…
Read More “1.1 Billion Barrels of Chesapeake Oil Disappear with a Keystroke”
Anti-Drilling/Fossil Fuel | Industrywide Issues | New York | Statewide NY

Phys.org, Others Run 3 Yr-Old New York Frack Study as New News
December 10, 2015December 10, 2015

We found this one kind of amusing, and instructive, illustrating how anti-drillers unthinkingly get their “news.” On September 26, 2012 (yes, over three years ago) Syracuse University issued a press release about a program begun earlier in 2012 called Project SWIFT (Shale-Water Interaction Forensic Tools). The aim of the research project was to baseline test water wells for homeowners in New York State so when/if fracking arrives, there is solid scientific evidence for the condition of water before and then after fracking. The study also, as it turns out, innovated a few new techniques, including a method to measure salinity in water, the use of iodine as a tracer when testing, etc. Here’s the thing–the study was concluded in 2014 and of course in 2014 Gov. Cuomo banned fracking for the foreseeable future in the Empire State. So it’s all over and done with. No need for more testing. The project ran its course. But what’s this? Several authoritative “science” sites all of a sudden re-ran the original Syracuse University press release about Project SWFIT–with this week’s date on it! Word for word, same press release as 3+ years ago–slapping a new date from this week on it. One of the sites was EurekAlert!. Another was Phys.org. Their postings created a cascading or domino effect with a number of enviro sites picking it up and running it as new news. Egg on face anyone?…
Read More “Phys.org, Others Run 3 Yr-Old New York Frack Study as New News”
Air Quality | Industrywide Issues | Jobs | Pennsylvania | Regulation | Statewide PA

Federal EPA’s New Ozone Standard: Air Not Cleaner, PA Jobs Killer
December 10, 2015December 10, 2015

In the name of protecting us, the federal Environmental Protection Agency (EPA) continues rogue actions in regulating the oil and gas industry–against the express dictates of the U.S. Constitution. The latest violation from the EPA is a new regulation lowering ozone levels. As David Williams from the Taxpayers Protection Alliance and a Pennsylvania native explains below, the “simple” act of lowering the ozone standard from 75 parts per BILLION to 70 ppb won’t do much at all to actually clean the air, but will directly result is lost jobs in Pennsylvania…
Read More “Federal EPA’s New Ozone Standard: Air Not Cleaner, PA Jobs Killer”
Carrizo Oil & Gas | Energy Companies

What’s Up with Carrizo Top Mgmt Continued Selling of Co. Stock?
December 10, 2015December 10, 2015

Carrizo Oil & Gas CEO Chip Johnson continues to sell off his company stock. On June 1, Johnson sold 24,661 shares of company stock for $1.2 million. A few days later, on June 5, he sold another 6,000 shares for $309,000. Then again on September 8, Johnson sold another 6,000 shares netting him $217,000. And on October 5, Johnson sold yet another tranche of 6,000 shares, this time for $227,040 (see Carrizo O&G CEO Chip Johnson Continues to Sell His Company Stock). In an “Oops, I did it again,” Johnson sold another tranche of 6,000 shares earlier this week–this time for $193,440. That makes the grand total of Johnson’s stock sales 48,661 shares since June for a grand total of $2.1 million. But Johnson isn’t the only Carrizo top dog to sell. Others have sold their shares, including board member Roger Ramsey who this week sold 1,000 shares for $33,310. This is the third time–that we know of–that Ramsey has sold stock in the company he helps oversee (see Carrizo CEO Chip Johnson Sells Another 6K Shares of Stock and Carrizo Oil & Gas “Insiders” Continue to Sell Company Stock). We have to ask, what in the world is going on at Carrizo that top management continues to sell off their stock?…
Read More “What’s Up with Carrizo Top Mgmt Continued Selling of Co. Stock?”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Statewide VA | Virginia

Virginia Anti Groups Pressure Gov McAuliffe to Shut Down Fracking
December 10, 2015December 10, 2015

A group of virulent anti-drilling groups, including Clean Water Action, the Virginia Sierra Club and Shenandoah Riverkeeper, are pushing Virginia’s Democrat Governor Terry McAuliffe to halt any new fracking permits in the state until they can muster enough public support (through their lying public relations campaigns) to permanently shut down fracking in the Old Dominion, like has been done in the Empire State (i.e. New York). Said groups, which always position their “requests” as even-handed and really the only wise thing to do–have pulled this stunt in state after state after state. Fracking is a miracle. Fracking is safe. Fracking produces jobs. Fracking does not pollute water, air, land, etc. But you wouldn’t know that by the propaganda issued by these disgusting groups. We hope McAuliffe doesn’t cave to their pressure the way man-child Andy Cuomo did…
Read More “Virginia Anti Groups Pressure Gov McAuliffe to Shut Down Fracking”
Anti-Drilling/Fossil Fuel | Industrywide Issues

Paris Climate Change Hoaxers Stick Fingers in Ears, Holler La La La
December 10, 2015December 10, 2015

More news from Paris and the COP21 Climate Conference going on there. You might think scientists would want to know if other scientists have evidence that your hypotheses and theories need to be modified a bit–challenging your theories based on real, actual science. Any good scientist welcomes such a challenge because in the end, either your theory was off-base and you can make it better/more accurate, or your theory was correct all along and you can show the world such is the case. However, the so-called scientists at the Paris Climate Conference want to revoke the credentials/pass to attend for anyone who does not “believe” as they do in the theory that mankind is catastrophically causing Mother Earth to warm up. Can you believe that?! This has gone so far beyond science it’s no longer funny. This is the equivalent of the Catholic Church persecuting Galileo for abandoning the geocentric (earth-at-the-center) view of the solar system for the heliocentric (sun-at-the-center) view. The warmers are the Catholic Church of the Fifteenth Century. If you cross us, if you disagree with us (and use science to do so), you are dirt. You are nothing. You will be expelled. In fact, some of these zealots want to put those of us who don’t believe in man-made global warming in jail (see RIT Professor Says Jail Those Who Don’t Believe in Global Warming). It’s like these climate change hoaxers stick their fingers in their ears and holler, “La la la la la, I can’t HEAR you!” Here’s the latest from Paris, where everything BUT science is being discussed…
Read More “Paris Climate Change Hoaxers Stick Fingers in Ears, Holler La La La”